What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-08-09 compared with 2022-05-10 · 414 added, 190 removed, 651 unchanged (48% of the section changed)

3 unchanged sentences

(unaudited and in millions, except share amounts)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Current Assets:

32 unchanged sentences

Common stock;

$ 0.01 par value, 150,000,000 shares authorized, 74,542,772 and 74,441,312 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively

$ 0.01 par value, 150,000,000 shares authorized, 74,597,462 and 74,441,312 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

Additional paid-in capital 13.3 3.9

9 unchanged sentences

(unaudited and in millions, except per share data)

Three Months Ended March 31,

Three Months Ended June 30,

Net sales $ 2,945.2 $ 2,879.3

1 unchanged sentence

Gross profit 690.5 692.4

Operating expenses:

Selling, general and administrative expenses 302.5 276.3

Engineering expenses

Amortization of intangibles

Restructuring expenses

Bad debt expense (credit) 1.6 ( 0.3 )

Income from operations 263.5 290.3

Interest expense, net

Other expense, net

Income before income taxes and equity in net earnings of affiliates 235.9 273.5

Income tax provision

Income before equity in net earnings of affiliates 164.4 265.8

Equity in net earnings of affiliates

Net income 177.6 284.4

Net loss (income) attributable to noncontrolling interests 0.1 ( 1.6 )

Net income attributable to AGCO Corporation and subsidiaries $ 177.7 $ 282.8

Net income per common share attributable to AGCO Corporation and subsidiaries:

$ 2.38 $ 3.74

$ 2.37 $ 3.73

Cash dividends declared and paid per common share $ 4.72 $ 4.17

Weighted average number of common and common equivalent shares outstanding:

See accompanying notes to condensed consolidated financial statements.

AGCO CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in millions, except per share data)

Six Months Ended June 30,

Net sales $ 5,630.9 $ 5,258.0

Cost of goods sold 4,309.1 3,995.1

Gross profit 1,321.8 1,262.9

Operating expenses:

Selling, general and administrative expenses 573.6 536.9

Engineering expenses

Amortization of intangibles

Impairment charges 36.0 —

Impairment charge 36.0 —

Restructuring expenses

19 unchanged sentences

(unaudited and in millions)

Three Months Ended March 31,

Three Months Ended June 30,

Net income $ 177.6 $ 284.4

3 unchanged sentences

Deferred gains and losses on derivatives, net of tax ( 3.2 ) 5.6

Other comprehensive income (loss), net of reclassification adjustments 136.7 ( 7.5 )

Other comprehensive (loss) income, net of reclassification adjustments ( 126.0 ) 80.4

Comprehensive income 51.6 364.8

Comprehensive income attributable to noncontrolling interests — ( 2.4 )

Comprehensive income attributable to AGCO Corporation and subsidiaries $ 51.6 $ 362.4

Six Months Ended June 30,

Net income $ 314.6 $ 435.8

Other comprehensive income, net of reclassification adjustments:

Foreign currency translation adjustments 13.8 33.5

Defined benefit pension plans, net of tax 3.4 29.1

Deferred gains and losses on derivatives, net of tax ( 6.5 ) 10.3

Other comprehensive income, net of reclassification adjustments 10.7 72.9

Comprehensive income 325.3 508.7

Comprehensive loss (income) attributable to noncontrolling interests 14.0 ( 2.6 )

4 unchanged sentences

(unaudited and in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

6 unchanged sentences

Equity in net earnings of affiliates, net of cash received ( 23.7 ) ( 32.6 )

Deferred income tax (benefit) provision ( 5.0 ) 4.1

Deferred income tax benefit ( 0.6 ) ( 65.5 )

Other 2.7 9.2

12 unchanged sentences

Investments in unconsolidated affiliates ( 1.5 ) ( 1.0 )

Purchase of businesses, net, and net of cash acquired ( 61.9 ) ( 0.8 )

(Purchase) sale of businesses, net, and net of cash acquired ( 111.3 ) 5.4

Other — ( 2.4 )

5 unchanged sentences

Payment of minimum tax withholdings on stock compensation ( 20.8 ) ( 33.6 )

Payment of debt issuance costs ( 0.2 ) —

Distributions to noncontrolling interest ( 11.6 ) ( 3.5 )

22 unchanged sentences

The standard, and its subsequent modification, likely will impact the results of operations and financial condition of the Company’s finance joint ventures.

Therefore, adoption of the standard by the Company’s finance joint ventures likely will impact the Company’s “Investments in affiliates” and “Equity in net earnings of affiliates.” The Company’s finance joint ventures currently are evaluating the impact of ASU 2016-13 to their results of operations and financial condition.

Therefore, adoption of the standard by the Company’s finance joint ventures likely will impact the Company’s “Investments in affiliates” and “Equity in net earnings of affiliates.” The adoption of ASU 2016-13 is not expected to have a material impact on the Company's results of operations or financial condition.

In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832):

7 unchanged sentences

guidance on the Company's annual disclosures.

Additionally, the Company will adopt the following pronouncement, effective for fiscal years beginning after December 15, 2022, which is not expected to have a material impact the Company's results of operations, financial condition and cash flows.

The Company will adopt the following pronouncement, effective for fiscal years beginning after December 15, 2022, which is not expected to have a material impact on the Company's results of operations, financial condition or cash flows.

• ASU 2021-08 – “Business Combinations:

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”

Notes to Condensed Consolidated Financial Statements - Continued

On May 2, 2022, the Company acquired JCA Industries, Inc.

1 unchanged sentence

JCA is located in Winnipeg, Manitoba, Canada, and specializes in the design of electronic systems and software development to automate and control agricultural equipment.

The Company is in the process of determining the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed.

The Company allocated the purchase price to the assets acquired and liabilities assumed based on preliminary estimates of their fair values as of the acquisition date.

The acquired net assets primarily consisted of accounts receivable, inventories, other current and noncurrent assets, accounts payable, accrued expenses, other current and noncurrent liabilities, property, plant and equipment, deferred tax liabilities as well as customer relationship, technology and trademark identifiable intangible assets.

The Company recorded approximately 43.9 million Canadian dollars (or approximately $ 34.0 million) of goodwill associated with the acquisition.

Notes to Condensed Consolidated Financial Statements - Continued

results of operations of JCA have been included in the Company’s Condensed Consolidated Financial Statements as of and from the date of acquisition.

The associated goodwill has been included in the Company’s North America geographical reportable segment.

Proforma financial information related to the acquisition of JCA was not material to the Company’s results of operations.

On January 1, 2022, the Company acquired Appareo Systems, LLC (“Appareo”) for approximately $ 62.1 million, net of approximately $ 0.5 million of cash.

8 unchanged sentences

Proforma financial information related to the acquisition of Appareo was not material to the Company’s results of operations.

The preliminary estimate of acquired identifiable intangible assets of Appareo as of the date of the acquisition are summarized in the following table (in millions):

The acquired identifiable intangible assets of JCA and Appareo as of the date of their respective acquisitions during the first six months in 2022 are summarized in the following table (in millions):

Intangible Asset

8 unchanged sentences

In recent years, the Company has announced and initiated several actions to rationalize employee headcount in various manufacturing facilities and administrative offices located in the U.S., Europe, South America, Africa and China in order to reduce costs.

Restructuring expenses activity during the three months ended March 31, 2022 is summarized as follows (in millions):

Restructuring expenses activity during the three and six months ended June 30, 2022 is summarized as follows (in millions):

Employee Severance Other Related Closure Costs Total

4 unchanged sentences

Balance as of March 31, 2022 $ 13.8 $ 0.3 $ 14.1

Second quarter 2022 provision 0.8 — 0.8

Second quarter 2022 provision reversal ( 0.4 ) — ( 0.4 )

Second quarter 2022 cash activity ( 3.3 ) — ( 3.3 )

Foreign currency translation ( 0.6 ) — ( 0.6 )

Balance as of June 30, 2022 $ 10.3 $ 0.3 $ 10.6

Impairment Charges

1 unchanged sentence

STOCK COMPENSATION PLANS

The Company recorded stock compensation expense as follows for the three months ended March 31, 2022 and 2021 (in millions):

Three Months Ended March 31,

The Company recorded stock compensation expense as follows for the three and six months ended June 30, 2022 and 2021 (in millions):

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Cost of goods sold $ 0.3 $ 0.3 $ 0.6 $ 0.6

3 unchanged sentences

Under the Company’s Long-Term Incentive Plan (the “Plan”), up to 10,000,000 shares of AGCO common stock may be issued.

As of March 31, 2022, of the 10,000,000 shares reserved for issuance under the Plan, 3,823,268 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below.

As of June 30, 2022, of the 10,000,000 shares reserved for issuance under the Plan, 3,817,951 shares were available for grant, assuming the maximum number of shares are earned related to the performance award grants discussed below.

The Plan allows the Company, under the direction of the Board of Directors’ Talent and Compensation Committee, to make grants of performance shares, stock appreciation rights, restricted stock units and restricted stock awards to employees, officers and non-employee directors of the Company.

Long-Term Incentive Plan and Related Performance Awards

The weighted average grant-date fair value of performance awards granted under the Plan during the three months ended March 31, 2022 and 2021 was $ 124.12 and $ 123.26 , respectively.

Notes to Condensed Consolidated Financial Statements - Continued

During the three months ended March 31, 2022, the Company granted 274,566 performance awards related to varying performance periods.

The awards granted assume the maximum target levels of performance are achieved.

Long-Term Incentive Plan and Related Performance Awards

The weighted average grant-date fair value of performance awards granted under the Plan during the six months ended June 30, 2022 and 2021 was $ 124.12 and $ 123.26 , respectively.

During the six months ended June 30, 2022, the Company granted 274,566 performance awards related to varying performance periods.

The compensation expense associated with all awards granted under the Plan is amortized ratably over the vesting or performance period based on the Company’s projected assessment of the level of performance that will be achieved.

The 2022 and 2021 grants of performance award shares are subject to a total shareholder return modifier.

Performance award transactions during the three months ended March 31, 2022 are presented as if the Company were to achieve its maximum levels of performance and assume the 2022 and 2021 performance awards subject to the total shareholder return modifier are achieved at target levels under the plan awards, and were as follows:

Performance award transactions during the six months ended June 30, 2022 are presented as if the Company were to achieve its maximum levels of performance and assume the 2022 and 2021 performance awards subject to the total shareholder return modifier are achieved at target levels under the plan awards and were as follows:

Shares awarded but not earned at January 1 514,714

2 unchanged sentences

Shares vested ( 2,534 )

Shares awarded but not earned at March 31 777,966

As of March 31, 2022, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $ 46.0 million, and the weighted average period over which it is expected to be recognized is approximately two and one-half years.

Shares awarded but not earned at June 30 773,886

As of June 30, 2022, the total compensation cost related to unearned performance awards not yet recognized, assuming the Company’s current projected assessment of the level of performance that will be achieved, was approximately $ 40.6 million, and the weighted average period over which it is expected to be recognized is approximately two years .

The compensation cost not yet recognized could be higher or lower based on actual achieved levels of performance.

On July 13, 2022, the Company granted 22,777 performance award shares (subject to the Company achieving future target levels of performance).

The 2022 grant of performance award shares is subject to a total shareholder return modifier.

Restricted Stock Unit Awards

The weighted average grant-date fair value of the restricted stock units (“RSUs”) granted under the Plan during the three months ended March 31, 2022 and 2021 was $ 117.08 and $ 113.63 , respectively.

During the three months ended March 31, 2022, the Company granted 91,583 RSU awards.

The weighted average grant-date fair value of the restricted stock units (“RSUs”) granted under the Plan during the six months ended June 30, 2022 and 2021 was $ 117.08 and $ 113.63 , respectively.

During the six months ended June 30, 2022, the Company granted 91,583 RSU awards.

RSUs granted in 2022 and 2021 entitle the participant to receive one share of the Company’s common stock for each RSU granted and vest one-third per year over a three-year requisite service period.

1 unchanged sentence

The compensation expense associated with these awards is being amortized ratably over the requisite service period for the awards that are expected to vest.

RSU transactions during the three months ended March 31, 2022 assume the 2020 RSUs subject to the total shareholder return modifier are achieved at target levels, and were as follows:

RSU transactions during the six months ended June 30, 2022 assume the 2020 RSUs subject to the total shareholder return modifier are achieved at target levels, and were as follows:

RSUs awarded but not vested at January 1 159,228

2 unchanged sentences

RSUs vested ( 65,025 )

RSUs awarded but not vested at March 31 183,386

As of March 31, 2022, the total compensation cost related to the unvested RSUs not yet recognized was approximately $ 17.0 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.

RSUs awarded but not vested at June 30 182,482

As of June 30, 2022, the total compensation cost related to the unvested RSUs not yet recognized was approximately $ 14.9 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.

On July 13, 2022, the Company granted 41,963 RSUs under the Plan.

Notes to Condensed Consolidated Financial Statements - Continued

2 unchanged sentences

The Company estimates the fair value of the grants using the Black-Scholes option pricing model.

SSAR transactions during the three months ended March 31, 2022 were as follows:

SSAR transactions during the six months ended June 30, 2022 were as follows:

SSARs outstanding at January 1 194,611

2 unchanged sentences

SSARs canceled or forfeited —

SSARs outstanding at March 31 156,560

The Company did not grant any SSARs during the three months ended March 31, 2022, and does not currently anticipate granting any SSARs in the future.

As of March 31, 2022, the total compensation cost related to the unvested SSARs not yet recognized was approximately $ 0.7 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.

SSARs outstanding at June 30 156,560

The Company did not grant any SSARs during the six months ended June 30, 2022, and does not currently anticipate granting any SSARs in the future.

As of June 30, 2022, the total compensation cost related to the unvested SSARs not yet recognized was approximately $ 0.6 million, and the weighted average period over which it is expected to be recognized is approximately one and one-half years.

Director Restricted Stock Grants

1 unchanged sentence

The 2022 grant was made on April 28, 2022 and equated to 11,664 shares of common stock, of which 10,301 shares of common stock were issued after shares were withheld for taxes.

The Company recorded stock compensation expense of approximately $ 1.5 million during the three months ended June 30, 2022 associated with these grants.

The Company recorded stock compensation expense of approximately $ 1.5 million during the six months ended June 30, 2022 associated with these grants.

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill during the three months ended March 31, 2022 are summarized as follows (in millions):

Changes in the carrying amount of goodwill during the six months ended June 30, 2022 are summarized as follows (in millions):

North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Balance as of December 31, 2021 $ 609.6 $ 81.7 $ 469.5 $ 120.0 $ 1,280.8

Acquisition 20.5 — — — 20.5

Acquisitions 54.8 — — — 54.8

Foreign currency translation ( 0.1 ) 4.9 ( 34.9 ) ( 7.3 ) ( 37.4 )

Balance as of March 31, 2022 $ 630.2 $ 95.8 $ 460.0 $ 118.7 $ 1,304.7

Balance as of June 30, 2022 $ 664.3 $ 86.6 $ 434.6 $ 112.7 $ 1,298.2

Goodwill is tested for impairment on an annual basis and more often if indications of impairment exist.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements - Continued

Changes in the carrying amount of acquired intangible assets during the three months ended March 31, 2022 are summarized as follows (in millions):

Changes in the carrying amount of acquired intangible assets during the six months ended June 30, 2022 are summarized as follows (in millions):

Gross carrying amounts:

1 unchanged sentence

Balance as of December 31, 2021 $ 189.0 $ 568.6 $ 139.9 $ 7.0 $ 904.5

Acquisition 6.3 9.8 6.3 — 22.4

Acquisitions 7.1 15.4 15.4 — 37.9

Foreign currency translation ( 5.9 ) ( 11.4 ) ( 6.2 ) ( 0.3 ) ( 23.8 )

Balance as of March 31, 2022 $ 194.0 $ 579.3 $ 144.7 $ 7.1 $ 925.1

Balance as of June 30, 2022 $ 190.2 $ 572.6 $ 149.1 $ 6.7 $ 918.6

Accumulated amortization:

3 unchanged sentences

Foreign currency translation ( 2.2 ) ( 8.6 ) ( 5.0 ) ( 0.1 ) ( 15.9 )

Balance as of March 31, 2022 $ 96.1 $ 420.6 $ 95.9 $ 1.6 $ 614.2

Balance as of June 30, 2022 $ 97.6 $ 420.0 $ 94.7 $ 1.5 $ 613.8

Indefinite-lived intangible assets:

2 unchanged sentences

Foreign currency translation ( 2.7 )

Balance as of March 31, 2022 $ 85.9

The Company currently amortizes certain acquired intangible assets, primarily on a straight-line basis, over their estimated useful lives, which range from three to 50 years.

Notes to Condensed Consolidated Financial Statements - Continued

Long-term debt consisted of the following at March 31, 2022 and December 31, 2021 (in millions):

March 31, 2022 December 31, 2021

Balance as of June 30, 2022 $ 84.0

The Company currently amortizes certain acquired intangible assets, primarily on a straight-line basis, over their estimated useful lives, which range from four to 50 years.

Long-term debt consisted of the following at June 30, 2022 and December 31, 2021 (in millions):

June 30, 2022 December 31, 2021

Credit facility, expires 2023 800.0 —

7 unchanged sentences

Total long-term indebtedness, less current portion $ 2,018.0 $ 1,411.2

Uncommitted Credit Facility

In June 2022, the Company entered into an uncommitted revolving credit facility that allows the Company to borrow up to € 100.0 million (or approximately $ 104.1 million as of June 30, 2022).

The credit facility expires on December 31, 2026.

Any loans will bear interest at market rates.

As of June 30, 2022, the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow € 100.0 million (or approximately $ 104.1 million).

Short-term Credit Facility

In April 2022, the Company entered into a short-term revolving credit facility of € 225.0 million with Coöperatieve Rabobank U.A., or “Rabobank.” The € 225.0 million (or approximately $ 240.0 million) was borrowed on April 26, 2022, with a maturity date of March 31, 2023.

In April 2022, the Company entered into a short-term revolving credit facility of € 225.0 million with Coöperatieve

Notes to Condensed Consolidated Financial Statements - Continued

Rabobank U.A., or “Rabobank.” The € 225.0 million (or approximately $ 240.0 million) was borrowed on April 26, 2022, with a maturity date of March 31, 2023.

Interest accrues on amounts outstanding under the credit facility, at the Company’s option, at either (1) the secured overnight financing rate (“SOFR”) for borrowings denominated in U.S.

3 unchanged sentences

0.800 % Senior Notes Due 2028

On October 6, 2021, the Company issued € 600.0 million (or approximately $ 665.6 million as of March 31, 2022) of senior notes at an issue price of 99.993 %.

On October 6, 2021, the Company issued € 600.0 million (or approximately $ 624.8 million as of June 30, 2022) of senior notes at an issue price of 99.993 %.

The notes mature on October 6, 2028, and interest is payable annually, in arrears, at 0.800 %.

6 unchanged sentences

dollars plus 1.0 %, plus a margin ranging from 0.0 % to 0.875 % based on the Company’s credit rating.

As of March 31, 2022 the Company had $ 600.0 million of outstanding borrowings under the revolving credit facility and had the ability to borrow approximately $ 200.0 million under the revolving credit facility.

During April 2022, the Company borrowed $ 200.0 million under its revolving credit facility.

As of June 30, 2022 the Company had $ 800.0 million of outstanding borrowings under the revolving credit facility and therefore had no availability to borrow under the revolving credit facility.

As of December 31, 2021 the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow approximately $ 800.0 million under the facility.

On April 9, 2020, the Company entered into an amendment to its credit facility to include incremental term loans (“2020 term loans”) that allow the Company to borrow aggregate principal amounts of € 235.0 million and $ 267.5 million (or an aggregate of approximately $ 528.2 million as of March 31, 2022).

Amounts can be drawn incrementally at any time prior to maturity, but must be drawn down proportionately.

Amounts drawn must be in a minimum principal amount of $ 100.0 million and integral multiples of $ 50.0 million in excess thereof.

Once amounts have been repaid, those amounts are not permitted to be re-drawn.

The maturity date of the 2020 term loans was April 8, 2022.

On April 15, 2020, the Company borrowed € 117.5 million and $ 133.8 million of 2020 term loans.

There were no other borrowings on the 2020 term loans subsequent to

Notes to Condensed Consolidated Financial Statements - Continued

the initial borrowings in April 2020.

On February 16, 2021, the Company repaid the 2020 term loans of € 117.5 million and $ 133.8 million (or an aggregate of approximately $ 276.0 million as of February 16, 2021).

As of March 31, 2022, the Company had the ability to borrow € 117.5 million and $ 133.7 million (or an aggregate of approximately $ 264.0 million) of the 2020 term loans.

On April 9, 2020, the Company entered into an amendment to its credit facility to include incremental term loans (“2020 term loans”) that allowed the Company to borrow aggregate principal amounts of € 235.0 million and $ 267.5 million.

The Company borrowed and then repaid amounts under the term loans in 2020 and 2021, respectively.

The 2020 term loans matured on April 8, 2022.

As described above, the Company’s credit facility allows it to select from among various interest rate options.

4 unchanged sentences

1.002 % Senior Term Loan Due 2025

On January 25, 2019, the Company borrowed € 250.0 million (or approximately $ 277.3 million as of March 31, 2022) from the European Investment Bank.

On January 25, 2019, the Company borrowed € 250.0 million (or approximately $ 260.4 million as of June 30, 2022) from the European Investment Bank.

The loan matures on January 24, 2025.

The Company is permitted to prepay the term loan before its maturity date.

Interest is payable on the term loan at 1.002 % per annum, payable semi-annually in arrears.

The Company is permitted to prepay the loan before its maturity date.

Interest is payable on the loan at 1.002 % per annum, payable semi-annually in arrears.

Senior Term Loans Due Between 2023 and 2028

2 unchanged sentences

Additionally, the Company repaid € 192.0 million (or approximately $ 223.8 million as of October 19, 2021) upon maturity of two 2016 senior term loans in October 2021.

In August 2021, prior to the issuance of the senior notes due 2028, the Company repaid two of its 2018 senior term loans upon maturity with an aggregate amount of € 72.0 million (or approximately $ 85.5 million as of August 1, 2021).

On April 19, 2022, the Company repaid € 1.0 million (or approximately $ 1.1 million) of one of its 2016 senior term loans due October 2023.

In August 2021, prior to the issuance of the senior notes due 2028, the Company

Notes to Condensed Consolidated Financial Statements - Continued

repaid two of its 2018 senior term loans upon maturity with an aggregate amount of € 72.0 million (or approximately $ 85.5 million as of August 1, 2021).

On February 1, 2022, the Company repaid € 72.5 million (or approximately $ 81.7 million) of one of its 2018 senior term loans due August 2023 with existing cash on hand.

In aggregate, as of March 31, 2022, the Company had indebtedness of € 320.5 million (or approximately $ 355.5 million as of March 31, 2022) through a group of seven remaining related term loan agreements.

In aggregate, as of June 30, 2022, the Company had indebtedness of € 319.5 million (or approximately $ 332.7 million as of June 30, 2022) through a group of six remaining related term loan agreements.

The provisions of the term loan agreements are substantially identical, with the exception of interest rate terms and maturities.

As of March 31, 2022, for the term loans with a fixed interest rate, interest is payable in arrears on an annual basis, with interest rates ranging from 0.90 % to 2.26 % and maturity dates between August 2023 and August 2028.

For the term loans with a floating interest rate, interest is payable in arrears on a semi-annual basis, with interest rates based on the EURIBOR plus a margin ranging from 1.10 % to 1.25 % and maturity dates between October 2023 and August 2025.

As of June 30, 2022, for the term loans with a fixed interest rate, interest is payable in arrears on an annual basis, with interest rates ranging from 0.90 % to 2.26 % and maturity dates between August 2023 and August 2028.

For the term loan with a floating interest rate, interest is payable in arrears on a semi-annual basis, with an interest rate based on the EURIBOR plus a margin of 1.10 % and a maturity date of August 2025.

Short-Term Borrowings

As of March 31, 2022 and December 31, 2021, the Company had short-term borrowings due within one year of approximately $ 93.2 million and $ 90.8 million, respectively.

As of June 30, 2022 and December 31, 2021, the Company had short-term borrowings due within one year of approximately $ 320.8 million and $ 90.8 million, respectively.

The balance as of June 30, 2022 related to short-term borrowings includes the short-term revolving credit facility discussed previously of approximately $ 240.0 million.

Standby Letters of Credit and Similar Instruments

The Company has arrangements with various banks to issue standby letters of credit or similar instruments, which guarantee the Company’s obligations for the purchase or sale of certain inventories and for potential claims exposure for insurance coverage.

At both March 31, 2022 and December 31, 2021, outstanding letters of credit totaled approximately $ 14.6 million.

At June 30, 2022 and December 31, 2021, outstanding letters of credit totaled approximately $ 14.4 million and $ 14.6 million, respectively.

RECOVERABLE INDIRECT TAXES

1 unchanged sentence

These taxes are accumulated as tax credits and create assets that are reduced by the VAT collected from the Company’s sales in the Brazilian market.

The Company regularly assesses the recoverability of these tax credits, and

Notes to Condensed Consolidated Financial Statements - Continued

establishes reserves when necessary against them, through analyses that include, amongst others, the history of realization, the transfer of tax credits to third parties as authorized by the government, anticipated changes in the supply chain and the future expectation of tax debits from the Company’s ongoing operations.

The Company regularly assesses the recoverability of these tax credits and establishes reserves when necessary against them, through analyses that include, amongst others, the history of realization, the transfer of tax credits to third parties as authorized by the government, anticipated changes in the supply chain and the future expectation of tax debits from the Company’s ongoing operations.

The Company believes that these tax credits, net of established reserves, are realizable.

The Company had recorded approximately $ 142.3 million and $ 114.4 million, respectively, of VAT tax credits, net of reserves, as of March 31, 2022 and December 31, 2021.

Inventories at March 31, 2022 and December 31, 2021 were as follows (in millions):

March 31, 2022 December 31, 2021

The Company had recorded approximately $ 127.9 million and $ 114.4 million, respectively, of VAT tax credits, net of reserves, as of June 30, 2022 and December 31, 2021.

Inventories at June 30, 2022 and December 31, 2021 were as follows (in millions):

June 30, 2022 December 31, 2021

Finished goods $ 951.9 $ 718.2

3 unchanged sentences

Inventories, net $ 3,382.3 $ 2,593.7

Notes to Condensed Consolidated Financial Statements - Continued

PRODUCT WARRANTY

The warranty reserve activity for the three months ended March 31, 2022 and 2021, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):

Three Months Ended March 31,

The warranty reserve activity for the three and six months ended June 30, 2022 and 2021, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Balance at beginning of period $ 614.5 $ 542.0 $ 592.5 $ 521.8

2 unchanged sentences

Foreign currency translation ( 36.9 ) 7.9 ( 40.5 ) ( 9.9 )

Balance at March 31 $ 614.5 $ 542.0

Balance at June 30 $ 589.5 $ 579.3 $ 589.5 $ 579.3

The Company’s agricultural equipment products generally are warranted against defects in material and workmanship for a period of one to four years .

The Company accrues for future warranty costs at the time of sale based on historical warranty experience.

Approximately $ 519.6 million, $ 492.7 million and $ 450.0 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

Approximately $ 94.9 million, $ 99.8 million and $ 92.0 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

Approximately $ 499.8 million, $ 492.7 million and $ 482.2 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively.

Approximately $ 89.7 million, $ 99.8 million and $ 97.1 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2022, December 31, 2021, and June 30, 2021, respectively.

The Company recognizes recoveries of the costs associated with warranties it provides when the collection is probable.

When specifics of the recovery have been agreed upon with the Company’s suppliers through confirmation of liability for the recovery, the Company records the recovery within “Accounts and notes receivable, net.” Estimates of the amount of warranty claim recoveries to be received from the Company’s suppliers based upon contractual supplier arrangements are recorded within “Other current assets.”

When specifics of the recovery have been agreed upon with the Company’s suppliers through the confirmation of liability for the recovery, the Company records the recovery within “Accounts and notes receivable, net.” Estimates of the amount of warranty claim recoveries to be received from the Company’s suppliers based upon contractual supplier arrangements are recorded within “Other current assets.”

Notes to Condensed Consolidated Financial Statements - Continued

NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during each period.

Diluted net income per common share assumes the exercise of outstanding SSARs and the vesting of performance share awards and RSUs using the treasury stock method when the effects of such assumptions are dilutive.

Notes to Condensed Consolidated Financial Statements - Continued

A reconciliation of net income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three months ended March 31, 2022 and 2021 is as follows (in millions, except per share data):

Three Months Ended March 31,

Diluted net income per common share assumes the exercise of outstanding SSARs and the vesting of performance share awards and RSUs using the treasury stock method when there is no other circumstance other than the passage of time under which they would not be issued, and the effects of such assumptions are dilutive.

A reconciliation of net income attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income per share for the three and six months ended June 30, 2022 and 2021 is as follows (in millions, except per share data):

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Basic net income per share:

8 unchanged sentences

Diluted net income per share attributable to AGCO Corporation and subsidiaries $ 2.37 $ 3.73 $ 4.40 $ 5.71

There were no SSARs outstanding for the three months ended March 31, 2022 and 2021 that had an antidilutive impact.

At March 31, 2022 and December 31, 2021, the Company had approximately $ 256.5 million and $ 246.4 million, respectively, of gross unrecognized income tax benefits, all of which would affect the Company’s effective tax rate if recognized.

Gross unrecognized income tax benefits as of March 31, 2022 and December 31, 2021 exclude certain indirect favorable effects that relate to other tax jurisdictions of approximately $ 61.5 million and $ 70.2 million, respectively.

In addition, the gross unrecognized income tax benefits as of March 31, 2022 and December 31, 2021 exclude certain deposits made in a foreign jurisdiction of approximately $ 46.8 million and $ 6.7 million, respectively, associated with an ongoing audit.

At March 31, 2022 and December 31, 2021, the Company had approximately $ 12.7 million and $ 40.1 million, respectively, of accrued or deferred taxes related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions that it expects to settle or pay in the next 12 months, reflected in “Other current liabilities” in the Company’s Condensed Consolidated Balance Sheets.

At March 31, 2022 and December 31, 2021, the Company had approximately $ 234.3 million and $ 196.7 million, respectively, of accrued taxes and approximately $ 9.5 million and $ 9.6 million, respectively, of deferred taxes related to uncertain tax positions that it expects to settle or pay beyond 12 months, reflected in “Other noncurrent liabilities” and “Deferred tax liabilities,” respectively, in the Company’s Condensed Consolidated Balance Sheets.

There were no SSARs outstanding for the three and six months ended June 30, 2022 and 2021 that had an antidilutive impact.

At June 30, 2022 and December 31, 2021, the Company had approximately $ 257.9 million and $ 246.4 million, respectively, of gross unrecognized income tax benefits, all of which would affect the Company’s effective tax rate if recognized.

Gross unrecognized income tax benefits as of June 30, 2022 and December 31, 2021 exclude certain indirect favorable effects that relate to other tax jurisdictions of approximately $ 63.0 million and $ 70.2 million, respectively.

In addition, the gross unrecognized income tax benefits as of June 30, 2022 and December 31, 2021 exclude certain deposits made in a foreign jurisdiction of approximately $ 43.9 million and $ 6.7 million, respectively, associated with an ongoing audit.

At June 30, 2022 and December 31, 2021, the Company had approximately $ 12.0 million and $ 40.1 million, respectively, of accrued or deferred taxes related to uncertain income tax positions connected with ongoing income tax audits in various jurisdictions that it expects to settle or pay in the next 12 months, reflected in “Other current liabilities” in the Company’s Condensed Consolidated Balance Sheets.

At June 30, 2022 and December 31, 2021, the Company had approximately $ 239.2 million and $ 196.7 million, respectively, of accrued taxes and approximately $ 6.7 million and $ 9.6 million, respectively, of deferred taxes related to uncertain tax positions that it expects to settle or pay beyond 12 months, reflected in “Other noncurrent liabilities” and “Deferred tax liabilities,” respectively, in the Company’s Condensed Consolidated Balance Sheets.

The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes.

At March 31, 2022 and December 31, 2021, the Company had accrued interest and penalties related to unrecognized tax benefits of approximately $ 31.7 million and $ 32.7 million, respectively.

At June 30, 2022 and December 31, 2021, the Company had accrued interest and penalties related to unrecognized tax benefits of approximately $ 31.5 million and $ 32.7 million, respectively.

Generally, tax years 2016 through 2021 remain open to examination by taxing authorities in the United States and certain other foreign tax jurisdictions.

The Company and its subsidiaries are routinely examined by tax authorities in the United States and in various state, local and foreign jurisdictions.

As of March 31, 2022, a number of income tax examinations in foreign jurisdictions are ongoing.

As of June 30, 2022, a number of income tax examinations in foreign jurisdictions are ongoing.

During the three months ended June 30, 2021, the Company’s income tax provision included the benefit of a reversal of approximately $ 67.8 million related to a valuation allowance previously established against the Company’s net deferred tax

Notes to Condensed Consolidated Financial Statements - Continued

assets in the United States.

Improvements in income in the United States during 2021, along with updated future projected income levels, supported the reversal of the valuation allowance.

The Company maintains a valuation allowance to fully reserve against its net deferred tax assets in certain foreign jurisdictions.

3 unchanged sentences

The Company believes it is more likely than not that the Company will realize its remaining net deferred tax assets, net of the valuation allowance, in future years.

Notes to Condensed Consolidated Financial Statements - Continued

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6 unchanged sentences

During 2022 and 2021, the Company designated certain foreign currency contracts as cash flow hedges of expected future sales and purchases.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 235.9 million as of March 31, 2022.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 242.7 million as of June 30, 2022.

The Company did not have any derivatives that were designated as cash flow hedges related to foreign currency contracts as of December 31, 2021.

1 unchanged sentence

During 2022 and 2021, the Company designated certain steel commodity contracts as cash flow hedges of expected future purchases of steel.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 21.6 million and $ 31.9 million as of March 31, 2022 and December 31, 2021, respectively.

The following tables summarize the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and net income during the three months ended March 31, 2022 and 2021 (in millions):

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 18.5 million and $ 31.9 million as of June 30, 2022 and December 31, 2021, respectively.

Notes to Condensed Consolidated Financial Statements - Continued

The following tables summarize the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and net income during the three and six months ended June 30, 2022 and 2021 (in millions):

Recognized in Net Income

Three Months Ended March 31, Gain (Loss) Recognized in Accumulated

Three Months Ended June 30, Gain (Loss) Recognized in Accumulated

Other Comprehensive Loss Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated

8 unchanged sentences

Total $ 5.1 $ ( 0.5 )

(1) The outstanding contracts as of March 31, 2022 range in maturity through December 2022.

(2) The outstanding contracts as of March 31, 2022 range in maturity through August 2022.

Recognized in Net Income

Six Months Ended June 30, Gain (Loss) Recognized in Accumulated

Other Comprehensive Loss Classification of Gain (Loss) Gain (Loss) Reclassified from Accumulated

Other Comprehensive Loss into Income Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)

Foreign currency contracts (1)

$ ( 6.5 ) Cost of goods sold $ ( 2.0 ) $ 4,309.1

Commodity contracts (2)

$ ( 3.1 ) Cost of goods sold ( 1.1 ) $ 4,309.1

Total $ ( 9.6 ) $ ( 3.1 )

Foreign currency contracts $ ( 7.6 ) Cost of goods sold $ ( 6.1 ) $ 3,995.1

Commodity contracts 13.7 Cost of goods sold 1.9 3,995.1

Total $ 6.1 $ ( 4.2 )

(1) The outstanding contracts as of June 30, 2022 range in maturity through December 2022.

(2) The outstanding contracts as of June 30, 2022 range in maturity through November 2022.

Notes to Condensed Consolidated Financial Statements - Continued

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended March 31, 2022 (in millions):

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended June 30, 2022 (in millions):

Before-Tax Amount Income Tax After-Tax Amount

Accumulated derivative net losses as of March 31, 2022 $ ( 4.8 ) $ ( 1.1 ) $ ( 3.7 )

Net changes in fair value of derivatives ( 10.2 ) ( 3.0 ) ( 7.2 )

Net losses reclassified from accumulated other comprehensive loss into income 5.4 1.4 4.0

Accumulated derivative net losses as of June 30, 2022 $ ( 9.6 ) $ ( 2.7 ) $ ( 6.9 )

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the six months ended June 30, 2022 (in millions):

Before-Tax Amount Income Tax After-Tax Amount

Accumulated derivative net losses as of December 31, 2021 $ ( 0.5 ) $ ( 0.1 ) $ ( 0.4 )

Net changes in fair value of derivatives ( 13.3 ) ( 3.7 ) ( 9.6 )

Net gains reclassified from accumulated other comprehensive loss into income ( 1.2 ) ( 0.3 ) ( 0.9 )

Accumulated derivative net losses as of March 31, 2022 $ ( 4.8 ) $ ( 1.1 ) $ ( 3.7 )

A s of March 31, 2022, approximately $ 2.4 million of derivatives net losses, before taxes, remain in accumulated other comprehensive loss held by the Company related to commodity contracts, as the inventory associated with the losses had not yet been sold.

Net losses reclassified from accumulated other comprehensive loss into income 4.2 1.1 3.1

Accumulated derivative net losses as of June 30, 2022 $ ( 9.6 ) $ ( 2.7 ) $ ( 6.9 )

As of June 30, 2022, approximately $ 0.7 million of derivative realized net losses and approximately $ 0.7 million of derivative realized net gains, before taxes, remain in accumulated other comprehensive loss related to foreign currency contracts and commodity contracts, respectively, associated with inventory that had not yet been sold.

Net Investment Hedges

9 unchanged sentences

The cross currency swap has an expiration date of January 29, 2028.

At maturity of the cross currency swap contract, the Company will deliver the notional amount of approximately € 247.9 million (or approximately $ 275.0 million as of March 31, 2022) and will receive $ 300.0 million from the counterparties.

At maturity of the cross currency swap contract, the Company will deliver the notional amount of approximately € 247.9 million (or approximately $ 258.2 million as of June 30, 2022) and will receive $ 300.0 million from the counterparties.

The Company will receive quarterly interest payments from the counterparties based on a fixed interest rate until the maturity of the cross currency swap.

Notes to Condensed Consolidated Financial Statements - Continued

The following table summarizes the notional values of the instrument designated as a net investment hedge (in millions):

Notional Amount as of

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Cross currency swap contract $ 300.0 $ 300.0

Notes to Condensed Consolidated Financial Statements - Continued

The following table summarizes the changes in the fair value of the cross currency swap contract designated as a net investment hedge during the three months ended March 31, 2022 and 2021 (in millions):

The following table summarizes the changes in the fair value of the cross currency swap contract designated as a net investment hedge during the three and six months ended June 30, 2022 and 2021 (in millions):

Gain (Loss) Recognized in Accumulated

Other Comprehensive Loss for the Three Months Ended

Before-Tax Amount Income Tax After-Tax Amount

March 31, 2022 $ 4.2 $ 1.1 $ 3.1

March 31, 2021 ( 4.1 ) — ( 4.1 )

Other Comprehensive Loss for the Three Months Ended Gain (Loss) Recognized in Accumulated

Other Comprehensive Loss for the Six Months Ended

Before-Tax Amount Income Tax After-Tax Amount Before-Tax Amount Income Tax After-Tax Amount

June 30, 2022 $ 16.6 $ 4.3 $ 12.3 $ 20.8 $ 5.4 $ 15.4

June 30, 2021 3.8 — 3.8 ( 0.3 ) — ( 0.3 )

Derivative Transactions Not Designated as Hedging Instruments

2 unchanged sentences

Gains and losses on such contracts are substantially offset by losses and gains on the remeasurement of the underlying asset or liability being hedged and are immediately recognized into earnings.

As of March 31, 2022 and December 31, 2021, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 3,360.9 million and $ 3,681.9 million, respectively.

As of June 30, 2022 and December 31, 2021, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 3,191.8 million and $ 3,681.9 million, respectively.

The following table summarizes the impact that changes in the fair value of derivatives not designated as hedging instruments had on net income (in millions):

(Loss) Gain Recognized in Net Income for the Three Months Ended

Classification of (Loss) Gain

March 31, 2022 March 31, 2021

Gain (Loss) Recognized in Net Income for the Three Months Ended Gain (Loss) Recognized in Net Income for the Six Months Ended

Classification of Gain (Loss)

June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021

Foreign currency contracts Other expense, net $ 0.4 $ ( 5.1 ) $ ( 13.4 ) $ 29.3

The table below sets forth the fair value of derivative instruments as of March 31, 2022 (in millions):

The table below sets forth the fair value of derivative instruments as of June 30, 2022 (in millions):

Asset Derivatives as of

March 31, 2022 Liability Derivatives as of

March 31, 2022

June 30, 2022 Liability Derivatives as of

June 30, 2022

Balance Sheet Location Fair Value Balance Sheet Location Fair Value

7 unchanged sentences

Total derivative instruments $ 57.7 $ 22.6

(1) The outstanding contracts as of March 31, 2022 range in maturity through October 2022.

(1) The outstanding contracts as of June 30, 2022 range in maturity through October 2022.

Notes to Condensed Consolidated Financial Statements - Continued

15 unchanged sentences

CHANGES IN STOCKHOLDERS’ EQUITY

The following tables set forth changes in stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three months ended March 31, 2022 and 2021 (in millions):

The following tables set forth changes in stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three and six months ended June 30, 2022 (in millions):

Stock Additional

3 unchanged sentences

Interests Total Stockholders’

Balance, December 31, 2021 $ 0.7 $ 3.9 $ 5,182.2 $ ( 1,770.9 ) $ 27.9 $ 3,443.8

Balance, March 31, 2022 $ 0.7 $ 2.9 $ 5,306.2 $ ( 1,635.0 ) $ 0.1 $ 3,674.9

Stock compensation — 10.6 — — — 10.6

12 unchanged sentences

Distributions to noncontrolling interest — — — — — —

Balance, June 30, 2022 $ 0.7 $ 13.3 $ 5,130.3 $ ( 1,761.1 ) $ 0.1 $ 3,383.3

Stock Additional

Paid-in Capital Retained

Earnings Accumulated Other

Comprehensive Loss Noncontrolling

Interests Total Stockholders’

Balance, December 31, 2021 $ 0.7 $ 3.9 $ 5,182.2 $ ( 1,770.9 ) $ 27.9 $ 3,443.8

Stock compensation — 17.6 — — — 17.6

Issuance of stock awards — ( 7.2 ) ( 12.9 ) — — ( 20.1 )

SSARs exercised — ( 1.0 ) — — — ( 1.0 )

Comprehensive income:

Net income (loss) — — 329.5 — ( 14.9 ) 314.6

Other comprehensive income, net of reclassification adjustments:

Foreign currency translation adjustments — — — 12.9 0.9 13.8

Defined benefit pension plans, net of tax — — — 3.4 — 3.4

Deferred gains and losses on derivatives, net of tax — — — ( 6.5 ) — ( 6.5 )

Payment of dividends to stockholders — — ( 368.5 ) — — ( 368.5 )

Distributions to noncontrolling interest — — — — ( 13.8 ) ( 13.8 )

Balance, June 30, 2022 $ 0.7 $ 13.3 $ 5,130.3 $ ( 1,761.1 ) $ 0.1 $ 3,383.3

Notes to Condensed Consolidated Financial Statements - Continued

Stock Additional

Paid-in Capital Retained

Earnings Accumulated Other

Comprehensive Loss Noncontrolling

Interests Total Stockholders’

Balance, March 31, 2021 $ 0.8 $ 5.7 $ 4,897.9 $ ( 1,817.9 ) $ 38.2 $ 3,124.7

Stock compensation — 8.4 — — — 8.4

SSARs exercised — ( 2.4 ) — — — ( 2.4 )

Comprehensive income:

Net income — — 282.8 — 1.6 284.4

Other comprehensive income, net of reclassification adjustments:

Foreign currency translation adjustments

— — — 80.0 0.8 80.8

Defined benefit pension plans, net of tax

— — — ( 6.0 ) — ( 6.0 )

Deferred gains and losses on derivatives, net of tax

— — — 5.6 — 5.6

Payment of dividends to stockholders

— — ( 316.6 ) — — ( 316.6 )

Distributions to noncontrolling interest — — — — ( 3.5 ) ( 3.5 )

Change in noncontrolling interest — — — — ( 10.6 ) ( 10.6 )

Balance, June 30, 2021 $ 0.8 $ 11.7 $ 4,864.1 $ ( 1,738.3 ) $ 26.5 $ 3,164.8

Stock Additional

10 unchanged sentences

Net income — — 433.6 — 2.2 435.8

Other comprehensive loss, net of reclassification adjustments:

Other comprehensive income, net of reclassification adjustments:

Foreign currency translation adjustments

6 unchanged sentences

— — ( 328.6 ) — — ( 328.6 )

Balance, March 31, 2021 $ 0.8 $ 5.7 $ 4,897.9 $ ( 1,817.9 ) $ 38.2 $ 3,124.7

Distributions to noncontrolling interest — — — — ( 3.5 ) ( 3.5 )

Change in noncontrolling interest — — — — ( 10.6 ) ( 10.6 )

Balance, June 30, 2021 $ 0.8 $ 11.7 $ 4,864.1 $ ( 1,738.3 ) $ 26.5 $ 3,164.8

Notes to Condensed Consolidated Financial Statements - Continued

Total comprehensive (loss) income attributable to noncontrolling interests for the three months ended March 31, 2022 and 2021 was as follows (in millions):

Three Months Ended March 31,

Total comprehensive income (loss) attributable to noncontrolling interests for the three and six months ended June 30, 2022 and 2021 was as follows (in millions):

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Net (loss) income $ ( 0.1 ) $ 1.6 $ ( 14.9 ) $ 2.2

Other comprehensive income (loss):

Other comprehensive income:

Foreign currency translation adjustments 0.1 0.8 0.9 0.4

Total comprehensive (loss) income $ ( 14.0 ) $ 0.2

The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the three months ended March 31, 2022 (in millions):

Total comprehensive income (loss) $ — $ 2.4 $ ( 14.0 ) $ 2.6

The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation and its subsidiaries for the six months ended June 30, 2022 (in millions):

Defined Benefit Pension Plans Deferred Net (Losses) Gains on Derivatives Cumulative Translation Adjustment Total

2 unchanged sentences

Other comprehensive income (loss) before reclassifications — ( 9.6 ) 12.9 3.3

Net losses (gains) reclassified from accumulated other comprehensive loss 1.7 ( 0.9 ) — 0.8

Net losses reclassified from accumulated other comprehensive loss 3.4 3.1 — 6.5

Other comprehensive income (loss), net of reclassification adjustments 3.4 ( 6.5 ) 12.9 9.8

Accumulated other comprehensive loss, March 31, 2022

Accumulated other comprehensive loss, June 30, 2022

$ ( 227.0 ) $ ( 6.9 ) $ ( 1,527.2 ) $ ( 1,761.1 )

The following table sets forth reclassification adjustments out of accumulated other comprehensive loss by component attributed to AGCO Corporation and its subsidiaries for the three months ended March 31, 2022 and 2021 (in millions):

Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item within the Condensed Consolidated

Statements of Operations

Details about Accumulated Other Comprehensive Loss Components Three Months Ended March 31, 2022 (1)

Three Months Ended March 31, 2021 (1)

Details about Accumulated Other Comprehensive Loss Components Three Months Ended June 30, 2022 (1)

Three Months Ended June 30, 2021 (1)

Net losses on foreign currency contracts $ 2.6 $ 3.5 Cost of goods sold

Net gains on commodity contracts $ ( 1.3 ) $ — Cost of goods sold

Net losses (gains) on commodity contracts $ 2.8 $ ( 1.9 ) Cost of goods sold

Reclassification before tax 5.4 1.6

8 unchanged sentences

Net losses reclassified from accumulated other comprehensive loss $ 5.7 $ 2.5

(1) Losses (gains) included within the Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021, respectively.

(1) Losses (gains) included within the Condensed Consolidated Statements of Operations for the three months ended June 30, 2022 and 2021, respectively.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements - Continued

Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item within the Condensed Consolidated

Statements of Operations

Details about Accumulated Other Comprehensive Loss Components Six Months Ended June 30, 2022 (1)

Six Months Ended June 30, 2021 (1)

Net losses on foreign currency contracts $ 2.7 $ 6.9 Cost of goods sold

Net losses (gains) on commodity contracts 1.5 ( 1.9 ) Cost of goods sold

Reclassification before tax 4.2 5.0

( 1.1 ) ( 0.8 ) Income tax provision

Reclassification net of tax $ 3.1 $ 4.2

Defined benefit pension plans:

Amortization of net actuarial losses $ 4.4 $ 7.4 Other expense, net (2)

Amortization of prior service cost 0.2 0.6 Other expense, net (2)

Reclassification before tax 4.6 8.0

( 1.2 ) ( 2.1 ) Income tax provision

Reclassification net of tax (3)

Net losses reclassified from accumulated other comprehensive loss $ 6.5 $ 10.1

(1) Losses (gains) included within the Condensed Consolidated Statements of Operations for the six months ended June 30, 2022 and 2021, respectively.

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement benefit cost.

See Note 15 for additional information on the Company’s defined benefit pension plans.

Share Repurchase Program

2 unchanged sentences

On January 19, 2022, the Company received an additional 113,824 shares upon final settlement of its November 2021 ASR agreement.

All shares received under the ASR agreement discussed above were retired upon receipt and the excess of the purchase price over par value per share was recorded to a combination of “Additional paid-in capital” and “Retained earnings” within the Company’s Condensed Consolidated Balance Sheets.

As of March 31, 2022, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $ 110.0 million, which has no expiration date.

On April 28, 2022, the Company's Board of Directors approved an increase to its quarterly dividend commencing in the second quarter of 2022 by 20 % to $ 0.24 per common share and declared a special dividend of $ 4.50 per common share that will be paid during the second quarter of 2022.

All shares received under the ASR agreement were retired upon receipt, and the excess of the purchase price over par value per share was recorded to a combination of “Additional paid-in capital” and “Retained earnings” within the Company’s Condensed Consolidated Balance Sheets.

During the three and six months ended June 30, 2022, the Company did not purchase any shares directly or enter into any accelerated share repurchase agreements.

As of June 30, 2022, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $ 110.0 million, which has no expiration date.

On April 28, 2022, the Company's Board of Directors approved an increase to its quarterly dividend commencing in the second quarter of 2022 by 20 % to $ 0.24 per common share and declared a special variable dividend of $ 4.50 per common share that was paid during the second quarter of 2022.

ACCOUNTS RECEIVABLE SALES AGREEMENTS

The Company has accounts receivable sales agreements that permit the sale, on an ongoing basis, of a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures.

As of March 31, 2022 and December 31, 2021, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $ 1.2 billion and $ 1.3 billion, respectively.

As of June 30, 2022 and December 31, 2021, the cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements was approximately $ 1.2 billion and $ 1.3 billion, respectively.

Under the terms of the accounts receivable sales agreements in North America, Europe and Brazil, the Company pays an annual fee related to the servicing of the receivables sold.

The Company also pays the respective AGCO Finance entities a subsidized interest payment with respect to the accounts receivable sales agreements, calculated based upon LIBOR plus a margin on any non-interest bearing accounts receivable outstanding and sold under the accounts receivable sales agreements.

The Company also pays the respective AGCO Finance entities a subsidized interest payment with respect to the accounts receivable sales agreements, calculated based upon LIBOR plus a

Notes to Condensed Consolidated Financial Statements - Continued

margin on any non-interest bearing accounts receivable outstanding and sold under the accounts receivable sales agreements.

Following the phase out of LIBOR-denominated rates, the Company expects this funding to be based upon the interest rate charged by Rabobank to its affiliate, which, in turn, such affiliate then lends to the AGCO Finance entities plus an agreed-upon margin.

3 unchanged sentences

In addition, the Company sells certain trade receivables under factoring arrangements to other financial institutions around the world.

As of March 31, 2022 and December 31, 2021, the cash received from these arrangements was approximately $ 181.2 million and $ 215.4 million, respectively.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 7.9 million and $ 4.6 million for the three months ended March 31, 2022 and 2021, respectively.

As of June 30, 2022 and December 31, 2021, the cash received from these arrangements was approximately $ 174.9 million and $ 215.4 million, respectively.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 10.2 million and $ 18.1 million, respectively, during the three and six months ended June 30, 2022.

Losses on sales of receivables associated with the accounts receivable sales agreements discussed above, reflected within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations, were approximately $ 5.1 million and $ 9.7 million, respectively, during the three and six months ended June 30, 2021.

The Company’s finance joint ventures in Europe, Brazil and Australia also provide wholesale financing directly to the Company’s dealers.

1 unchanged sentence

The Company does not service the receivables after the sale occurs and does not maintain any direct retained interest in the receivables.

As of March 31, 2022 and December 31, 2021, these finance joint ventures had approximately $ 87.8 million and $ 82.1 million, respectively, of outstanding accounts receivable associated with these arrangements.

As of June 30, 2022 and December 31, 2021, these finance joint ventures had approximately $ 50.7 million and $ 42.6 million, respectively, of outstanding accounts receivable associated with these arrangements.

The Company accounts for these arrangements as off-balance sheet transactions.

Notes to Condensed Consolidated Financial Statements - Continued

In certain foreign countries, the Company invoices its finance joint ventures directly and the finance joint ventures retain a form of title to the goods delivered to dealers until the dealer makes payment so that the finance joint ventures can recover the goods in the event of dealer or end customer default on payment.

This occurs as the laws of some foreign countries do not provide for a seller’s retention of a security interest in goods in the same manner as established in the United States Uniform Commercial Code.

The only right the finance joint ventures retain with respect to the title are those enabling recovery of the goods in the event of customer default on payment.

The dealer or distributor may not return equipment or replacement parts to the Company while its contract with the finance joint venture is in force, and can only return the equipment to the retail finance joint venture with penalties that would generally not make it economically beneficial to do so.

PENSION AND POSTRETIREMENT BENEFIT PLANS

Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three months ended March 31, 2022 and 2021 are set forth below (in millions):

Three Months Ended March 31,

Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three and six months ended June 30, 2022 and 2021 are set forth below (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Pension benefits 2022 2021 2022 2021

5 unchanged sentences

Curtailment (1)

— — — $ ( 1.2 )

Net periodic pension cost $ 4.9 $ 2.5 $ 9.9 $ 5.3

(1) During the three months ended March 31, 2021, the Company amended its Executive Nonqualified Pension Plan (“ENPP”) to freeze the plan as of December 31, 2024 to future salary benefit accruals, and to eliminate a life-time annuity feature for participants reaching age 65 subsequent to December 31, 2022.

(1) During the six months ended June 30, 2021, the Company amended its Executive Nonqualified Pension Plan (“ENPP”) to freeze the plan as of December 31, 2024 to future salary benefit accruals, and to eliminate a life-time annuity feature for participants reaching age 65 subsequent to December 31, 2022.

This amendment resulted in a curtailment gain related to the ENPP's net prior service credit.

Three Months Ended March 31,

Notes to Condensed Consolidated Financial Statements - Continued

Three Months Ended June 30, Six Months Ended June 30,

Postretirement benefits 2022 2021 2022 2021

4 unchanged sentences

The components of net periodic pension and postretirement benefits cost, other than the service cost component, are included in “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations.

The following table summarizes the activity in accumulated other comprehensive loss related to the Company's defined pension and postretirement benefit plans during the three months ended March 31, 2022 (in millions):

The following table summarizes the activity in accumulated other comprehensive loss related to the Company's defined pension and postretirement benefit plans during the six months ended June 30, 2022 (in millions):

Before-Tax Amount Income Tax After-Tax Amount

2 unchanged sentences

Amortization of prior service cost 0.2 0.1 0.1

Accumulated other comprehensive loss as of March 31, 2022 $ ( 300.0 ) $ ( 71.3 ) $ ( 228.7 )

During the three months ended March 31, 2022, the Company made approximately $ 10.6 million of contributions to its defined pension benefit plans.

Accumulated other comprehensive loss as of June 30, 2022 $ ( 297.8 ) $ ( 70.8 ) $ ( 227.0 )

During the six months ended June 30, 2022, the Company made approximately $ 18.9 million of contributions to its defined pension benefit plans.

The Company currently estimates its minimum contributions for 2022 to its defined pension benefit plans will aggregate approximately $ 35.2 million.

During the three months ended March 31, 2022, the Company made approximately $ 0.3 million of contributions to its postretirement health care and life insurance benefit plans.

During the six months ended June 30, 2022, the Company made approximately $ 0.7 million of contributions to its postretirement health care and life insurance benefit plans.

The Company currently estimates that it will make approximately $ 1.5 million of contributions to its postretirement health care and life insurance benefit plans during 2022.

17 unchanged sentences

See Note 12 for additional information on the Company’s derivative instruments and hedging activities.

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 are summarized below (in millions):

As of March 31, 2022

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 are summarized below (in millions):

As of June 30, 2022

Level 1 Level 2 Level 3 Total

6 unchanged sentences

The carrying amounts of long-term debt under the Company’s 1.002 % senior term loan due 2025 and senior term loans due between 2023 and 2028 approximate fair value based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.

At March 31, 2022, the estimated fair value of the Company's 0.800 % senior notes due 2028, based on listed market values, was approximately € 541.7 million (or approximately $ 600.9 million as of March 31, 2022), compared to the carrying value of € 600.0 million (or approximately $ 665.6 million as of March 31, 2022).

At June 30, 2022, the estimated fair value of the Company's 0.800 % senior notes due 2028, based on listed market values, was approximately € 480.6 million (or approximately $ 500.5 million as of June 30, 2022), compared to the carrying value of € 600.0 million (or approximately $ 624.8 million as of June 30, 2022).

See Note 6 for additional information on the Company’s long-term debt.

6 unchanged sentences

As a result, the components of income from operations for one segment may not be comparable to another segment.

Segment results for the three months ended March 31, 2022 and 2021 and assets as of March 31, 2022 and December 31, 2021 based on the Company’s reportable segments are as follows (in millions):

Three Months Ended March 31, North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Segment results for the three and six months ended June 30, 2022 and 2021 and assets as of June 30, 2022 and December 31, 2021 based on the Company’s reportable segments are as follows (in millions):

Three Months Ended June 30, North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Net sales $ 739.9 $ 519.2 $ 1,467.6 $ 218.5 $ 2,945.2

6 unchanged sentences

Capital expenditures 8.8 5.0 40.3 3.0 57.1

As of March 31, 2022 $ 1,594.6 $ 1,151.3 $ 2,598.1 $ 656.1 $ 6,000.1

Six Months Ended June 30, North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Net sales $ 1,440.9 $ 875.6 $ 2,870.7 $ 443.7 $ 5,630.9

Income from operations 105.5 131.6 323.5 64.7 625.3

Depreciation 30.2 14.6 53.5 8.2 106.5

Capital expenditures 30.9 21.2 81.7 5.4 139.2

Net sales $ 1,345.8 $ 518.8 $ 2,962.4 $ 431.0 $ 5,258.0

Income from operations 178.6 39.3 345.8 47.6 611.3

Depreciation 30.8 13.3 58.0 7.8 109.9

Capital expenditures 21.1 11.6 83.8 4.1 120.6

As of June 30, 2022 $ 1,683.1 $ 1,124.4 $ 2,635.2 $ 652.3 $ 6,095.0

As of December 31, 2021 1,328.1 922.7 2,348.7 610.6 5,210.1

Notes to Condensed Consolidated Financial Statements - Continued

A reconciliation from the segment information to the consolidated balances for income from operations and total assets is set forth below (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Segment income from operations $ 328.1 $ 354.9 $ 625.3 $ 611.3

5 unchanged sentences

Consolidated income from operations $ 263.5 $ 290.3 $ 467.5 $ 485.5

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Segment assets $ 6,095.0 $ 5,210.1

5 unchanged sentences

Consolidated total assets $ 9,888.9 $ 9,182.1

Notes to Condensed Consolidated Financial Statements - Continued

COMMITMENTS AND CONTINGENCIES

3 unchanged sentences

The Company believes that any losses that it might incur on the resale of this equipment will not be material, due to the fair value of the underlying equipment.

At March 31, 2022, the Company has outstanding guarantees of indebtedness owed to related and third parties of approximately $ 24.9 million, primarily related to dealer and end-user financing of equipment.

At June 30, 2022, the Company has outstanding guarantees of indebtedness owed to related and third parties of approximately $ 27.1 million, primarily related to dealer and end-user financing of equipment.

Such guarantees generally obligate the Company to repay outstanding finance obligations owed to financial institutions if dealers or end users default on such loans through 2027.

4 unchanged sentences

The Company believes the credit risk associated with these guarantees is not material.

In addition, at March 31, 2022, the Company had accrued approximately $ 22.4 million of outstanding guarantees of residual values that may be owed to its finance joint ventures in the United States and Canada due upon expiration of certain eligible operating leases between the finance joint ventures and end users.

In addition, at June 30, 2022, the Company had accrued approximately $ 20.2 million of outstanding guarantees of residual values that may be owed to its finance joint ventures in the United States and Canada due upon expiration of certain eligible operating leases between the finance joint ventures and end users.

The maximum potential amount of future payments under these guarantees is approximately $ 183.8 million.

Lease payment amounts for operating and finance leases with remaining terms greater than one year as of March 31, 2022 and December 31, 2021 were as follows (in millions):

March 31, 2022 December 31, 2021

Notes to Condensed Consolidated Financial Statements - Continued

Lease payment amounts for operating and finance leases with remaining terms greater than one year as of June 30, 2022 and December 31, 2021 were as follows (in millions):

June 30, 2022 December 31, 2021

Operating Leases (1)

13 unchanged sentences

(2) Calculated for each lease using either the implicit interest rate or the incremental borrowing rate when the implicit interest rate is not readily available.

At March 31, 2022, the Company had outstanding designated and non-designated foreign exchange contracts with a gross notional amount of approximately $ 3,596.8 million.

The outstanding contracts as of March 31, 2022 range in maturity through December 2022.

The Company also had outstanding designated steel commodity contracts with a gross notional amount of approximately $ 21.6 million that range in maturity through August 2022.

Notes to Condensed Consolidated Financial Statements - Continued

At June 30, 2022, the Company had outstanding designated and non-designated foreign exchange contracts with a gross notional amount of approximately $ 3,434.5 million.

The outstanding contracts as of June 30, 2022 range in maturity through December 2022.

The Company also had outstanding designated steel commodity contracts with a gross notional amount of approximately $ 18.5 million that range in maturity through November 2022.

The Company sells a majority of its wholesale receivables in North America, Europe and Brazil to its U.S., Canadian, European and Brazilian finance joint ventures.

3 unchanged sentences

In August 2008, as part of routine audits, the Brazilian taxing authorities disallowed deductions relating to the amortization of certain goodwill recognized in connection with a reorganization of the Company’s Brazilian operations and the related transfer of certain assets to the Company’s Brazilian subsidiaries.

The amount of the tax disallowance through March 31, 2022, not including interest and penalties, was approximately 131.5 million Brazilian reais (or approximately $ 27.8 million).

The amount of the tax disallowance through June 30, 2022, not including interest and penalties, was approximately 131.5 million Brazilian reais (or approximately $ 25.0 million).

The amount ultimately in dispute will be significantly greater because of interest and penalties.

3 unchanged sentences

During 2017, the Company purchased Precision Planting, which provides precision agricultural technology solutions.

In 2018, Deere & Company filed separate complaints in the U.S.

District Court of Delaware against the Company and its Precision Planting subsidiary alleging that certain products of those entities infringe certain patents of Deere.

In 2018, Deere & Company (“Deere”) filed separate complaints in the U.S.

District Court of Delaware against the Company and Precision Planting alleging that certain products of those entities infringed certain patents of Deere.

The two complaints subsequently were consolidated into a single case, Case No.

1:18-cv-00827-CFC (CONSOLIDATED), that currently is scheduled for trial in July 2022.

It is the Company’s position that no patents have been, or are continuing to be, infringed, and the Company is vigorously contesting the allegations in the complaint.

1:18-cv-00827-CFC.

In July 2022, the case was tried before a jury, which determined that the Company and Precision Planting had not infringed the Deere patents.

The case currently is subject to customary post-trial procedures, including the right of the parties to appeal.

The Company has an indemnity right under the purchase agreement related to the acquisition of Precision Planting from its previous owner.

Pursuant to that right, the previous owner of Precision Planting currently is responsible for the litigation costs associated with the complaint and is obligated to reimburse AGCO for some or all of the damages in the event of an adverse outcome in the litigation.

In the event of an adverse outcome, the Company estimates that the range of possible damages, based upon the advice of third-party specialists, would be up to approximately $ 7.0 million.

Deere & Company has provided an estimate of its damages that is significantly higher than the Company estimates and that the Company believes does not have merit.

Notes to Condensed Consolidated Financial Statements - Continued

The Company is a party to various other legal claims and actions incidental to its business.

3 unchanged sentences

(1) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to extended warranty and maintenance contracts and where the performance obligation is satisfied over time, (2) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to certain grain storage and protein production systems and where the performance obligation is satisfied over time and (3) unrecognized revenues where advance payment of consideration precedes the Company’s performance with respect to technology services and where the performance obligation is satisfied over time.

Notes to Condensed Consolidated Financial Statements - Continued

Significant changes in the balance of contract liabilities for the three months ended March 31, 2022 and 2021 were as follows (in millions):

Three Months Ended March 31,

Significant changes in the balance of contract liabilities for the three and six months ended June 30, 2022 and 2021 were as follows (in millions):

Three Months Ended June 30,

Balance at beginning of period $ 232.4 $ 186.3

3 unchanged sentences

Foreign currency translation ( 11.9 ) 1.8

Balance at March 31 $ 232.4 $ 186.3

Balance at June 30 $ 217.7 $ 201.2

Six Months Ended June 30,

Balance at beginning of period $ 226.2 $ 172.0

Advance consideration received 74.5 116.1

Revenue recognized during the period for extended warranty contracts, maintenance services and technology services ( 39.0 ) ( 26.3 )

Revenue recognized during the period related to grain storage and protein production systems ( 28.5 ) ( 59.8 )

Foreign currency translation ( 15.5 ) ( 0.8 )

Balance at June 30 $ 217.7 $ 201.2

The contract liabilities are classified as either “Accrued expenses” or “Other current liabilities” and “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets.

During the three months ended March 31, 2022, we recognized approximately $ 24.0 million of revenue that was recorded as a contract liability at the beginning of 2022.

During the three months ended March 31, 2021, we recognized approximately $ 25.7 million of revenue that was recorded as a contract liability at the beginning of 2021.

During the three and six months ended June 30, 2022, we recognized approximately $ 28.3 million and $ 52.4 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2022.

During the three and six months ended June 30, 2021, we recognized approximately $ 17.4 million and $ 43.2 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2021.

Remaining Performance Obligations

The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2022 are $ 58.7 million for the remainder of 2022, $ 69.1 million in 2023, $ 42.5 million in 2024, $ 20.2 million in 2025 and $ 10.9 million thereafter, and relate primarily to extended warranty contracts.

The estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2022 are $ 42.3 million for the remainder of 2022, $ 68.8 million in 2023, $ 44.4 million in 2024, $ 21.7 million in 2025 and $ 13.0 million thereafter, and relate primarily to extended warranty contracts.

The Company applied the practical expedient in ASU 2014-09 and has not disclosed information about remaining performance obligations that have original expected durations of 12 months or less.

1 unchanged sentence

Disaggregated Revenue

Net sales for the three months ended March 31, 2022 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Net sales for the three months ended June 30, 2022 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America South America Europe/Middle East (1)

23 unchanged sentences

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the three months ended March 31, 2021 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America South America Europe/Middle East Asia/Pacific/Africa Consolidated

Net sales for the three months ended June 30, 2021 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America (1)

South America (1)

Europe/Middle East (1)

Asia/Pacific/Africa Consolidated (1)

Primary geographical markets:

19 unchanged sentences

$ 734.7 $ 278.3 $ 1,635.2 $ 231.1 $ 2,879.3

(1) Rounding may impact the summation of amounts.

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the six months ended June 30, 2022 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America (1)

South America Europe/Middle East (1)

Asia/Pacific/Africa Consolidated

Primary geographical markets:

United States $ 1,153.7 $ — $ — $ — $ 1,153.7

Canada 226.9 — — — 226.9

South America — 868.4 — — 868.4

Germany — — 605.3 — 605.3

France — — 529.2 — 529.2

United Kingdom and Ireland — — 303.2 — 303.2

Finland and Scandinavia — — 393.1 — 393.1

Other Europe — — 959.9 — 959.9

Middle East and Algeria — — 80.0 — 80.0

Africa — — — 70.5 70.5

Asia — — — 201.9 201.9

Australia and New Zealand — — — 171.3 171.3

Mexico, Central America and Caribbean 60.3 7.2 — — 67.5

$ 1,440.9 $ 875.6 $ 2,870.7 $ 443.7 $ 5,630.9

Major products:

Tractors $ 515.3 $ 497.9 $ 1,891.6 $ 237.8 $ 3,142.6

Replacement parts 214.1 74.8 556.8 49.8 895.5

Grain storage and protein production systems 286.7 81.6 77.0 81.1 526.4

Combines, application equipment and other machinery 424.9 221.3 345.2 75.0 1,066.4

$ 1,440.9 $ 875.6 $ 2,870.7 $ 443.7 $ 5,630.9

(1) Rounding may impact the summation of amounts.

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the six months ended June 30, 2021 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America (1)

South America Europe/Middle East (1)

Asia/Pacific/Africa Consolidated (1)

Primary geographical markets:

United States $ 1,069.6 $ — $ — $ — $ 1,069.6

Canada 230.5 — — — 230.5

South America — 514.6 — — 514.6

Germany — — 693.9 — 693.9

France — — 510.3 — 510.3

United Kingdom and Ireland — — 295.4 — 295.4

Finland and Scandinavia — — 378.6 — 378.6

Other Europe — — 982.3 — 982.3

Middle East and Algeria — — 101.9 — 101.9

Africa — — — 61.9 61.9

Asia — — — 218.9 218.9

Australia and New Zealand — — — 150.2 150.2

Mexico, Central America and Caribbean 45.8 4.2 — — 50.0

$ 1,345.8 $ 518.8 $ 2,962.4 $ 431.0 $ 5,258.0

Major products:

Tractors $ 433.5 $ 237.4 $ 1,950.5 $ 190.1 $ 2,811.5

Replacement parts 207.5 62.5 559.2 48.9 878.2

Grain storage and protein production systems 264.4 53.7 85.9 125.7 529.7

Combines, application equipment and other machinery 440.4 165.2 366.7 66.3 1,038.6

$ 1,345.8 $ 518.8 $ 2,962.4 $ 431.0 $ 5,258.0

(1) Rounding may impact the summation of amounts.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements