What changed in this filing

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Item 1. Financial Statements

2024-11-07 compared with 2024-08-08 · 249 added, 236 removed, 1017 unchanged (32% of the section changed)

3 unchanged sentences

(unaudited and in millions, except share amounts)

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Current Assets:

36 unchanged sentences

Common stock;

$ 0.01 par value, 150,000,000 shares authorized, 74,634,538 and 74,517,973 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

$ 0.01 par value, 150,000,000 shares authorized, 74,644,933 and 74,517,973 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

Additional paid-in capital 12.4 4.1

9 unchanged sentences

(unaudited and in millions, except per share data)

Three Months Ended June 30,

Three Months Ended September 30,

Net sales $ 2,599.3 $ 3,455.5

6 unchanged sentences

Impairment charges 0.2 —

Restructuring expenses

Restructuring and business optimization expenses

Loss on business held for sale

Income (loss) from operations

( 241.7 ) 496.4

Income from operations

Interest expense, net

Other expense, net

Income (loss) before income taxes and equity in net earnings of affiliates

( 336.9 ) 412.6

Income before income taxes and equity in net earnings of affiliates

Income tax provision

Income (loss) before equity in net earnings of affiliates

( 378.5 ) 301.6

Income before equity in net earnings of affiliates

Equity in net earnings of affiliates

Net income (loss)

( 368.9 ) 319.2

Net loss attributable to noncontrolling interests 1.1 0.1

Net income (loss) attributable to AGCO Corporation and subsidiaries

Net income attributable to AGCO Corporation and subsidiaries

$ 30.0 $ 280.6

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

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

$ 0.40 $ 3.75

6 unchanged sentences

(unaudited and in millions, except per share data)

Six Months Ended June 30,

Nine Months Ended September 30,

Net sales $ 8,774.6 $ 10,611.7

6 unchanged sentences

Impairment charges 5.3 —

Restructuring expenses

Restructuring and business optimization expenses

Loss on business held for sale

22 unchanged sentences

(unaudited and in millions)

Three Months Ended June 30,

Net income (loss)

Three Months Ended September 30,

$ 28.9 $ 280.5

1 unchanged sentence

Foreign currency translation adjustments 81.0 ( 54.5 )

Defined benefit pension plans, net of tax 1.9 1.9

Defined pension and postretirement benefit plans, net of tax

Deferred gains and losses on derivatives, net of tax 1.6 0.5

1 unchanged sentence

84.6 ( 52.1 )

Comprehensive income (loss)

( 505.1 ) 390.8

Comprehensive income

Comprehensive loss attributable to noncontrolling interests

Comprehensive income (loss) attributable to AGCO Corporation and subsidiaries

Comprehensive income attributable to AGCO Corporation and subsidiaries

$ 113.5 $ 228.5

Six Months Ended June 30,

Nine Months Ended September 30,

Net income (loss)

2 unchanged sentences

Foreign currency translation adjustments ( 107.1 ) 64.1

Defined benefit pension plans, net of tax 3.6 3.7

Defined pension and postretirement benefit plans, net of tax

Deferred gains and losses on derivatives, net of tax 6.5 ( 3.5 )

10 unchanged sentences

(unaudited and in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

1 unchanged sentence

$ ( 172.0 ) $ 832.3

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation 189.4 168.9

15 unchanged sentences

Total adjustments 64.0 ( 629.6 )

Net cash used in operating activities

Net cash provided by (used in) operating activities

( 108.0 ) 202.7

23 unchanged sentences

____________________________________

(1) Includes $ 20.0 million of cash and cash equivalents classified as held for sale as of June 30, 2024.

(1) Includes $ 20.0 million of cash and cash equivalents classified as held for sale as of September 30, 2024.

See accompanying notes to condensed consolidated financial statements.

13 unchanged sentences

Remeasurement adjustments for financial statements in highly inflationary economies and other transactional exchange gains and losses are reported in "Other expense, net" within the Company's Condensed Consolidated Statements of Operations.

For the six months ended and as of June 30, 2024, the Company's wholly-owned subsidiary in Turkey had net sales of approximately $ 263.0 million and total assets of approximately 8.2 billion Turkish lira (or approximately $ 248.7 million).

The monetary assets and liabilities denominated in the Turkish lira were approximately 7.6 billion Turkish lira (or approximately $ 232.0 million) and approximately 4.6 billion Turkish lira (or approximately $ 140.4 million), respectively, as of June 30, 2024.

The monetary assets and liabilities were remeasured into United States dollar based on exchange rates as of June 30, 2024.

For the nine months ended and as of September 30, 2024, the Company's wholly-owned subsidiary in Turkey had net sales of approximately $ 317.9 million and total assets of approximately 5.9 billion Turkish lira (or approximately $ 173.1 million).

The monetary assets and liabilities denominated in the Turkish lira were approximately 4.6 billion Turkish lira (or approximately $ 134.0 million) and approximately 2.5 billion Turkish lira (or approximately $ 72.0 million), respectively, as of September 30, 2024.

The monetary assets and liabilities were remeasured into United States dollar based on exchange rates as of September 30, 2024.

The Company has a wholly-owned subsidiary in Argentina that assembles and distributes agricultural equipment and replacement parts.

3 unchanged sentences

In December 2023, the central bank of Argentina adjusted the official foreign currency exchange rate for the Argentine peso, significantly devaluing the currency relative to the United States dollar.

For the six months ended and as of June 30, 2024, the Company's wholly-owned subsidiary in Argentina had net sales of approximately $ 99.5 million and total assets of approximately 238.7 billion pesos (or approximately $ 262.6 million).

The monetary assets of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 87.2 billion pesos (or approximately $ 95.9 million), inclusive of approximately 34.3 billion pesos (or approximately $ 37.7 million) in cash and cash equivalents, as of June 30, 2024.

The monetary liabilities of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 14.0 billion pesos (or approximately $ 15.4 million) as of June 30, 2024.

The monetary assets and liabilities were remeasured into United States dollar based on exchange rates as of June 30, 2024.

For the nine months ended and as of September 30, 2024, the Company's wholly-owned subsidiary in Argentina had net sales of approximately $ 167.3 million and total assets of approximately 254.7 billion pesos (or approximately $ 262.3 million).

The monetary assets of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 104.4 billion pesos (or approximately $ 107.5 million), inclusive of approximately 59.8 billion pesos (or approximately $ 61.6 million) in cash and cash equivalents, as of September 30, 2024.

The monetary liabilities of the Company's operations in Argentina denominated in pesos at the official government rate were approximately 15.3 billion pesos (or approximately $ 15.8 million) as of September 30, 2024.

The monetary assets and liabilities were remeasured into United States dollar based on exchange rates as of September 30, 2024.

The Company's finance joint venture in Argentina, AGCO Capital Argentina S.A.

("AGCO Capital"), had net monetary assets denominated in pesos at the official government rate of approximately 5.1 billion (or approximately $ 5.6 million) as of June 30, 2024.

("AGCO Capital"), had net monetary assets denominated in pesos at the official government rate of approximately 9.0 billion pesos (or approximately $ 9.3 million) as of September 30, 2024.

All gains and losses resulting from AGCO Capital's remeasurement of its monetary assets and liabilities are reported as part of AGCO Capital's net income, our share of which is included in “Equity in net earnings of affiliates” within our Condensed Consolidated Statements of Operations.

2 unchanged sentences

Improvements to Reportable Segment Disclosures," which expands annual and interim disclosure requirements and requires entities to disclose its significant segment expense categories and amounts for each reportable segment.

The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption

The ASU is effective for public entities for fiscal years

Notes to Condensed Consolidated Financial Statements - Continued

beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures.

19 unchanged sentences

The purchase price allocation was based upon preliminary information and is subject to change if additional information about the facts and circumstances that existed at the acquisition date becomes available.

The Company continues to evaluate the valuation of the assets acquired and liabilities assumed related to the acquisition, including inventories, developed technologies, trade names, favorable contracts, customer relationships, deferred taxes and redeemable noncontrolling interests.

Measurement period adjustments to the previously disclosed preliminary fair values of developed technologies, tradename, favorable contracts, customer relationships and redeemable noncontrolling interests as a result of updated valuations were recorded resulting in a decrease of intangible assets of $ 94.9 million, redeemable noncontrolling interests of $ 167.2 million and goodwill of $ 72.0 million during the three months ended September 30, 2024.

The adjustment to intangible assets resulted in a reduction of amortization expense of approximately $ 5.9 million being recorded during the three months ended September 30, 2024.

The Company continues to evaluate the valuation of the assets acquired and liabilities assumed related to the acquisition, including inventories, developed technologies, tradename, favorable contracts, customer relationships, deferred taxes and redeemable noncontrolling interests.

The final fair value of the net assets acquired may result in adjustments to these assets and liabilities, including goodwill.

3 unchanged sentences

At this time, the assignment of goodwill to reporting units has not yet been completed.

Notes to Condensed Consolidated Financial Statements - Continued

The estimated purchase consideration transferred consisted of the following (in millions):

4 unchanged sentences

Total purchase consideration $ 1,911.5

Notes to Condensed Consolidated Financial Statements - Continued

(a) Equity transaction associated with JCA noncontrolling interest

28 unchanged sentences

We estimated the preliminary fair value of the put and call options using a Monte Carlo simulation along with a Black Scholes model assuming an exercise date of three years from the close of the transaction, the first allowable exercise date.

We evaluated the put and call options for the redeemable noncontrolling interests under ASC 480, Distinguishing Liabilities from Equity, and classified the redeemable noncontrolling interests as mezzanine equity based on its redemption features.

We evaluated the put and call options for the

Notes to Condensed Consolidated Financial Statements - Continued

redeemable noncontrolling interests under ASC 480, Distinguishing Liabilities from Equity, and classified the redeemable noncontrolling interests as mezzanine equity based on its redemption features.

The amount of the net income or loss attributable to the redeemable noncontrolling interests is recorded in “Net loss attributable to noncontrolling interests” within the Company's Condensed Consolidated Statements of Operations.

To the extent the redemption value exceeds the initial fair value recorded, the Company will recognize the entire change in the redemption amount each reporting period in retained earnings.

Notes to Condensed Consolidated Financial Statements - Continued

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

8 unchanged sentences

OneAg's pre-acquisition results have been added to the Company's historical results.

The pro forma results contained in the table below include adjustments for (i) the elimination of sales between the Company and OneAg, (ii) amortization of acquired intangible assets (iii) interest expense and amortization of debt issuance costs related to borrowings under the Senior Notes due 2027 and 2034 and term loan facility and (iv) transaction-related costs as if these had been incurred on January 1, 2023 for the periods ending June 30, 2023 and 2024, respectively.

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

The pro forma results (in millions) contained in the table below include adjustments for (i) the elimination of sales between the Company and OneAg, (ii) amortization of acquired intangible assets (iii) interest expense and amortization of debt issuance costs related to borrowings under the Senior Notes due 2027 and 2034 and term loan facility and (iv) transaction-related costs as if these had been incurred on January 1, 2023 for the periods ending September 30, 2023 and 2024, respectively.

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

5 unchanged sentences

The amounts of PTx Trimble's net sales and net loss attributable to AGCO Corporation and subsidiaries consolidated by the Company since the acquisition date were $ 122.1 million and $ 21.3 million, respectively.

During the six months ended June 30, 2024, transaction-related costs of approximately $ 23.3 million were expensed as incurred to “Selling, general and administrative expenses” in the Company's Condensed Consolidated Statements of Operations.

During the nine months ended September 30, 2024, transaction-related costs of approximately $ 24.1 million were expensed as incurred to “Selling, general and administrative expenses” in the Company's Condensed Consolidated Statements of Operations.

BUSINESS HELD FOR SALE

On July 25, 2024, the Company announced it had entered into a definitive agreement to sell the majority of its Grain & Protein (“G&P”) business for a purchase price of $ 700.0 million, subject to customary working capital and other adjustments.

On July 25, 2024, the Company entered into a Stock and Asset Purchase Agreement to sell the majority of its Grain & Protein (“G&P”) business, which includes the GSI®, Automated Production® (AP), Cumberland®, Cimbria® and Tecno® brands for a purchase price of $ 700.0 million, subject to customary working capital and other adjustments.

As of June 30, 2024, the business met the criteria to be classified as held for sale.

The Company recognizes assets and liabilities held for sale at the lower of carrying value or fair market value less costs to sell.

The fair market value less costs to sell of the disposal group is evaluated at each reporting period to determine if it has changed, and any subsequent changes are recognized as a gain or loss with a corresponding adjustment to the carrying amount of the disposal group.

The loss on business held for sale will be finalized in the fourth quarter upon the closing of the transaction based on the carrying value of the disposal group at the date of

Notes to Condensed Consolidated Financial Statements - Continued

The Company determined the intended sale of the G&P business does not represent a strategic shift that will have a major effect on the consolidated results of operations, and therefore results of this business were not classified as discontinued operations.

The results of the G&P business are included within our North America, South America, Europe/Middle East and Asia/Pacific/Africa segments.

Upon classification as held for sale, the Company recognized a loss on business held for sale of $ 494.6 million, which represents the estimated loss on the business held for sale, and is included within “Loss on business held for sale” in the Company's Condensed Consolidated Statements of Operations.

As of September 30, 2024, the Company recognized a loss on business held for sale of $ 497.8 million, which represents the estimated loss on the business held for sale, and is included within “Loss on business held for sale” in the Company's Condensed Consolidated Statements of Operations.

The estimated loss includes $ 71.6 million of cumulative translation adjustment losses related to the assets expected to be divested and an estimate of costs to sell the business.

The closing of the transaction is subject to customary closing conditions and is expected to be completed in the second half of 2024.

Notes to Condensed Consolidated Financial Statements - Continued

The major categories of assets and liabilities of the business classified as held for sale as of June 30, 2024 were as follows:

June 30, 2024

On November 1, 2024, the Company completed the previously announced sale of the Company’s G&P business to A-AG Holdco Limited, an affiliate of American Industrial Partners.

Additionally, on November 1, 2024, the Company repaid the $ 500.0 million outstanding under the Term Loan Facility and $ 150.0 million outstanding under the Credit Facility utilizing proceeds from the sale of the Company’s G&P business.

Refer to Note 9 for further information.

The major categories of assets and liabilities of the business classified as held for sale as of September 30, 2024 were as follows:

September 30, 2024

Current assets held for sale:

15 unchanged sentences

Total current liabilities held for sale 259.6

Long-term debt, less current portion and debt issuance costs 0.8

Deferred tax liabilities 11.1

Pension and postretirement health care benefits 0.3

Operating lease liabilities 10.5

4 unchanged sentences

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.

The cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements that remain outstanding as of June 30, 2024 and December 31, 2023 was approximately $ 2.4 billion and $ 2.5 billion, respectively.

The cash received from receivables sold under the U.S., Canadian, European and Brazilian accounts receivable sales agreements that remain outstanding as of September 30, 2024 and December 31, 2023 was approximately $ 2.2 billion and $ 2.5 billion, respectively.

Under the terms of the accounts receivable sales agreements in the U.S., Canada, 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 the interest rate charged by Rabobank to its affiliate, and such affiliate then lends to the AGCO Finance entities plus an agreed-upon margin.

The Company also pays the respective AGCO Finance

Notes to Condensed Consolidated Financial Statements - Continued

entities a subsidized interest payment with respect to the accounts receivable sales agreements, calculated based upon the interest rate charged by Rabobank to its affiliate, and such affiliate then lends to the AGCO Finance entities plus an agreed-upon margin.

These fees are reflected within losses on the sales of receivables included within “Other expense, net” in the Company’s Condensed Consolidated Statements of Operations.

2 unchanged sentences

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

The cash received from trade receivables sold under factoring arrangements that remain outstanding as of

Notes to Condensed Consolidated Financial Statements - Continued

June 30, 2024 and December 31, 2023 was approximately $ 221.4 million and $ 254.1 million, respectively.

The cash received from trade receivables sold under factoring arrangements that remain outstanding as of September 30, 2024 and December 31, 2023 was approximately $ 205.4 million and $ 254.1 million, respectively.

Under these arrangements, the Company is required to continue to service the sold receivables at market rates.

1 unchanged sentence

The Company reviewed its accounting for the accounts receivable sales agreements and determined that receivables sold under these agreements should be accounted for as off-balance sheet transactions.

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 $ 35.9 million and $ 63.8 million during the three and six months ended June 30, 2024, 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 and $ 30.3 million and $ 58.8 million during the three and six months ended June 30, 2023, 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 $ 28.4 million and $ 92.2 million during the three and nine months ended September 30, 2024, 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 and $ 40.5 million and $ 99.3 million during the three and nine months ended September 30, 2023, respectively.

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

As of June 30, 2024 and December 31, 2023, these finance joint ventures had approximately $ 187.7 million and $ 211.3 million, respectively, of outstanding accounts receivable associated with these arrangements.

As of September 30, 2024 and December 31, 2023, these finance joint ventures had approximately $ 203.2 million and $ 211.3 million, respectively, of outstanding accounts receivable associated with these arrangements.

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.

3 unchanged sentences

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill during the six months ended June 30, 2024 are summarized as follows (in millions):

Changes in the carrying amount of goodwill during the nine months ended September 30, 2024 are summarized as follows (in millions):

North America South America Europe/Middle East Asia/Pacific/Africa Unallocated (1)

4 unchanged sentences

Foreign currency translation ( 0.8 ) ( 10.2 ) 5.0 3.3 3.5 0.8

Balance as of June 30, 2024 $ 142.8 $ 68.9 $ 393.1 $ — $ 1,803.0 $ 2,407.8

Balance as of September 30, 2024 $ 143.3 $ 70.2 $ 410.1 $ — $ 1,734.8 $ 2,358.4

____________________________________

6 unchanged sentences

Notes to Condensed Consolidated Financial Statements - Continued

Changes in the carrying amount of acquired intangible assets during the six months ended June 30, 2024 are summarized as follows (in millions):

Changes in the carrying amount of acquired intangible assets during the nine months ended September 30, 2024 are summarized as follows (in millions):

Gross carrying amounts:

5 unchanged sentences

Foreign currency translation ( 0.4 ) ( 3.6 ) ( 2.2 ) 0.1 ( 6.1 )

Balance as of June 30, 2024 $ 79.5 $ 191.2 $ 535.9 $ 48.1 $ 854.7

Balance as of September 30, 2024 $ 75.4 $ 196.4 $ 445.3 $ 51.2 $ 768.3

Accumulated amortization:

5 unchanged sentences

Foreign currency translation ( 0.8 ) ( 3.2 ) ( 1.7 ) — ( 5.7 )

Balance as of June 30, 2024 $ 43.9 $ 124.5 $ 77.0 $ 5.1 $ 250.5

Balance as of September 30, 2024 $ 45.1 $ 130.8 $ 81.5 $ 9.0 $ 266.4

Indefinite-lived intangible assets:

2 unchanged sentences

Foreign currency translation 0.3

Balance as of June 30, 2024 $ 84.8

Balance as of September 30, 2024 $ 86.2

____________________________________

2 unchanged sentences

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

External-use software, net, developed by the Company and marketed externally, was approximately $ 0.9 million and $ 6.3 million as of June 30, 2024 and December 31, 2023, respectively, and classified within “Intangible assets, net.” As of June 30, 2024, $ 4.5 million of external-use software, net was reclassified to held for sale.

Inventories, net at June 30, 2024 and December 31, 2023, excluding amounts classified as held for sale, were as follows (in millions):

June 30, 2024 December 31, 2023

External-use software, net, developed by the Company and marketed externally, was approximately $ 0.7 million and $ 6.3 million as of September 30, 2024 and December 31, 2023, respectively, and classified within “Intangible assets, net.” As of September 30, 2024, $ 4.6 million of external-use software, net was reclassified to held for sale.

Inventories, net at September 30, 2024 and December 31, 2023, excluding amounts classified as held for sale, were as follows (in millions):

September 30, 2024 December 31, 2023

Finished goods $ 1,604.6 $ 1,460.7

3 unchanged sentences

Inventories, net $ 3,443.2 $ 3,440.7

At June 30, 2024 and December 31, 2023, the Company had recorded $ 261.0 million and $ 238.9 million respectively, as a reserve for surplus and obsolete inventories.

These reserves are reflected within "Inventories, net" within the Company's Condensed Consolidated Balance Sheets.

Notes to Condensed Consolidated Financial Statements - Continued

At September 30, 2024 and December 31, 2023, the Company had recorded $ 285.9 million and $ 238.9 million respectively, as a reserve for surplus and obsolete inventories.

These reserves are reflected within "Inventories, net" within the Company's Condensed Consolidated Balance Sheets.

PRODUCT WARRANTY

The warranty reserve activity for the three and six months ended June 30, 2024 and 2023, 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,

The warranty reserve activity for the three and nine months ended September 30, 2024 and 2023, including deferred revenue associated with the Company's extended warranties that have been sold, was as follows (in millions):

Three Months Ended September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

7 unchanged sentences

Foreign currency translation 27.9 ( 21.1 ) ( 1.1 ) ( 3.5 )

Balance at June 30 $ 774.6 $ 727.2 $ 774.6 $ 727.2

Balance at September 30 $ 792.8 $ 735.2 $ 792.8 $ 735.2

____________________________________

5 unchanged sentences

Revenue is recognized for the extended warranty contracts on a straight-line basis, which the Company believes approximates the cost expected to be incurred in satisfying the obligations, over the extended warranty period.

Approximately $ 635.6 million, $ 679.9 million and $ 613.6 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2024, December 31, 2023 and June 30, 2023, respectively.

Approximately $ 139.0 million, $ 120.9 million and $ 113.6 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of June 30, 2024, December 31, 2023, and June 30, 2023, respectively.

Approximately $ 645.2 million, $ 679.9 million and $ 625.6 million of warranty reserves are included in “Accrued expenses” in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2024, December 31, 2023 and September 30, 2023, respectively.

Approximately $ 147.6 million, $ 120.9 million and $ 109.6 million of warranty reserves are included in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2024, December 31, 2023, and September 30, 2023, respectively.

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

1 unchanged sentence

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” in the Company's Condensed Consolidated Balance Sheets.

Notes to Condensed Consolidated Financial Statements - Continued

SUPPLIER FINANCE PROGRAMS

6 unchanged sentences

The Company has no economic interest in a supplier’s decision to participate in the programs, and the Company has no direct financial relationship with the banks or other intermediaries as it relates to the supplier finance programs.

As of June 30, 2024, payment terms with the majority of the Company’s suppliers are generally 30 to 180 days, which correspond to the contractual terms, with rates that are based on market rates (such as SOFR) plus a credit spread.

As of September 30, 2024, payment terms with the majority of the Company’s suppliers are generally 30 to 180 days, which correspond to the contractual terms, with rates that are based on market rates (such as SOFR) plus a credit spread.

There are no assets pledged as security under the programs.

As of June 30, 2024 and December 31, 2023, the amounts outstanding that remain unpaid to the banks or other intermediaries totaled $ 92.9 million and $ 82.7 million, respectively, and are reflected in “Accounts payable” in the Company’s Condensed Consolidated Balance Sheets.

Notes to Condensed Consolidated Financial Statements - Continued

Long-term debt, excluding amounts classified as held for sale, consisted of the following at June 30, 2024 and December 31, 2023 (in millions):

June 30, 2024 December 31, 2023

As of September 30, 2024 and December 31, 2023, the amounts outstanding that remain unpaid to the banks or other intermediaries totaled $ 77.7 million and $ 82.7 million, respectively, and are reflected in “Accounts payable” in the Company’s Condensed Consolidated Balance Sheets.

Long-term debt, excluding amounts classified as held for sale, consisted of the following at September 30, 2024 and December 31, 2023 (in millions):

September 30, 2024 December 31, 2023

Credit facility, expires 2027 $ 790.0 $ —

12 unchanged sentences

1.002 % EIB Senior term loan due 2025

Senior term loans due 2025, net of debt issuance costs

Total long-term indebtedness

6 unchanged sentences

The Credit Facility matures on December 19, 2027.

Interest accrues on amounts outstanding for any borrowings denominated in United States dollars, at the Company’s option, at either (1) the Secured Overnight Financing Rate (“SOFR”) plus 0.1 % plus a margin ranging from 0.875 % to 1.875 % based on the Company’s credit rating, or (2) the base rate, which is the highest of (i) the Prime Rate, (ii) the Federal Funds Effective Rate plus 0.5 %, and (iii) Term SOFR for a one-month tenor plus 1.0 %, plus a margin ranging from 0.000 % to 0.875 % based on the Company’s credit rating.

Interest accrues on amounts outstanding for any borrowings denominated in United States dollars, at the

Notes to Condensed Consolidated Financial Statements - Continued

Company’s option, at either (1) the Secured Overnight Financing Rate (“SOFR”) plus 0.1 % plus a margin ranging from 0.875 % to 1.875 % based on the Company’s credit rating, or (2) the base rate, which is the highest of (i) the Prime Rate, (ii) the Federal Funds Effective Rate plus 0.5 %, and (iii) Term SOFR for a one-month tenor plus 1.0 %, plus a margin ranging from 0.000 % to 0.875 % based on the Company’s credit rating.

Interest accrues on amounts outstanding for any borrowings denominated in Euros at the Euro Interbank Offered Rate (“EURIBOR”) plus a margin ranging from 0.875 % to 1.875 % based on the Company’s credit rating.

As of June 30, 2024, the Company had $ 760.0 million in outstanding borrowings under the revolving credit facility and had the ability to borrow $ 489.9 million.

As of September 30, 2024, the Company had $ 790.0 million in outstanding borrowings under the revolving credit facility and had the ability to borrow $ 459.9 million.

Subsequent to the end of the quarter, on November 1, 2024, the Company repaid $ 150.0 million outstanding under the Credit Facility utilizing proceeds from the sale of the Company’s G&P business.

In December 2023, the Company amended the Credit Facility to allow for incremental borrowings in the form of a delayed draw term loan facility in an aggregate principal amount of $ 250.0 million.

3 unchanged sentences

The Term Loan Facility matures on December 19, 2027.

As of June 30, 2024, the Company had $ 500.0 million outstanding under the Term Loan Facility.

Notes to Condensed Consolidated Financial Statements - Continued

As of September 30, 2024, the Company had $ 500.0 million outstanding under the Term Loan Facility.

Subsequent to the end of the quarter, on November 1, 2024, the Company repaid the $ 500.0 million outstanding under the Term Loan Facility utilizing proceeds from the sale of the Company’s G&P business.

Refer to Note 3 for further information on the sale of the Company's G&P business.

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 $ 107.0 million as of June 30, 2024).

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 $ 111.7 million as of September 30, 2024).

The credit facility expires on December 31, 2026.

Any loans will bear interest at the EURIBOR plus a credit spread.

As of June 30, 2024 and December 31, 2023, the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow € 100.0 million (or approximately $ 107.0 million).

As of September 30, 2024 and December 31, 2023, the Company had no outstanding borrowings under the revolving credit facility and had the ability to borrow € 100.0 million (or approximately $ 111.7 million).

5.450 % Senior Notes due 2027 and 5.800 % Senior Notes due 2034

8 unchanged sentences

0.800 % Senior Notes due 2028

On October 6, 2021, the Company issued € 600.0 million (or approximately $ 642.0 million as of June 30, 2024) of senior notes at an issue price of 99.993 %.

On October 6, 2021, the Company issued € 600.0 million (or approximately $ 670.2 million as of September 30, 2024) 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 %.

1 unchanged sentence

The senior notes are subject to both optional and mandatory redemption in certain events.

Notes to Condensed Consolidated Financial Statements - Continued

1.002 % European Investment Bank ("EIB") Senior Term Loan due 2025

On January 25, 2019, the Company borrowed € 250.0 million (or approximately $ 267.5 million as of June 30, 2024) from the EIB.

On January 25, 2019, the Company borrowed € 250.0 million (or approximately $ 279.3 million as of September 30, 2024) from the EIB.

The loan matures on January 24, 2025.

3 unchanged sentences

On September 29, 2023, the Company entered into a multi-currency Finance Contract with the EIB permitting the Company to borrow up to € 250.0 million to fund up to 50 % of certain investments in research, development and innovation primarily in Germany, France and Finland during the period from 2023 through 2026.

On October 26, 2023, the Company borrowed € 250.0 million (or approximately $ 267.5 million as of June 30, 2024) under the arrangement.

On October 26, 2023, the Company borrowed € 250.0 million (or approximately $ 279.3 million as of September 30, 2024) under the arrangement.

The loan matures on October 26, 2029.

2 unchanged sentences

The Company also has to fulfill financial covenants with respect to a net leverage ratio and an interest coverage ratio.

Notes to Condensed Consolidated Financial Statements - Continued

On January 25, 2024, the Company entered into an additional multi-currency Finance Contract with the EIB permitting the Company to borrow up to € 170.0 million, for which the proceeds will be used in a similar manner as described for the EIB Senior Term Loan due 2029 above.

On February 15, 2024, the Company borrowed € 170.0 million (or approximately $ 181.9 million as of June 30, 2024) under the arrangement.

On February 15, 2024, the Company borrowed € 170.0 million (or approximately $ 189.9 million as of September 30, 2024) under the arrangement.

The loan matures on February 15, 2030.

6 unchanged sentences

Of the 2018 senior term loans, the Company repaid an aggregate amount of € 244.0 million in August 2021, February 2022 and August 2023.

In aggregate, as of June 30, 2024, the Company had indebtedness of € 146.5 million (or approximately $ 156.8 million as of June 30, 2024) through a group of four remaining related term loan agreements.

In aggregate, as of September 30, 2024, the Company had indebtedness of € 146.5 million (or approximately $ 163.7 million as of September 30, 2024) through a group of four 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 June 30, 2024, for the term loans with a fixed interest rate, interest is payable in arrears on an annual basis, with interest rates ranging from 1.67 % to 2.26 % and maturity dates between August 2025 and August 2028.

As of September 30, 2024, for the term loans with a fixed interest rate, interest is payable in arrears on an annual basis, with interest rates ranging from 1.67 % to 2.26 % and maturity dates between August 2025 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.

3 unchanged sentences

Other Short-Term Borrowings

As of June 30, 2024 and December 31, 2023, the Company had short-term borrowings due within one year, excluding the current portion of long-term debt, of approximately $ 51.7 million and $ 12.7 million, respectively.

As of September 30, 2024 and December 31, 2023, the Company had short-term borrowings due within one year, excluding the current portion of long-term debt, of approximately $ 61.6 million and $ 12.7 million, respectively.

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 June 30, 2024 and December 31, 2023, outstanding letters of credit totaled approximately $ 14.7 million and $ 14.7 million, respectively.

RESTRUCTURING EXPENSES

Notes to Condensed Consolidated Financial Statements - Continued

insurance coverage.

At September 30, 2024 and December 31, 2023, outstanding letters of credit totaled approximately $ 14.7 million and $ 14.7 million, respectively.

RESTRUCTURING AND BUSINESS OPTIMIZATION EXPENSES

On June 24, 2024, the Company announced a restructuring program (the “Program”) in response to increased weakening demand in the agriculture industry.

2 unchanged sentences

The Company expects the majority of these cash charges will be incurred in 2024 and the first half of 2025.

Notes to Condensed Consolidated Financial Statements - Continued

Additionally, in recent years, the Company 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 Asia, in order to reduce costs in response to fluctuating global market demand.

Restructuring expenses activity, which relates to severance and other related costs, during the three and six months ended June 30, 2024 is summarized as follows (in millions):

Restructuring expenses activity, which relates to severance and other related costs, during the three and nine months ended September 30, 2024 is summarized as follows (in millions):

Balance as of December 31, 2023 $ 7.8

3 unchanged sentences

Balance as of March 31, 2024 $ 5.3

Second quarter 2024 provision 30.5

Second quarter 2024 provision reversal ( 0.4 )

Second quarter 2024 provision, net of reversals 30.1

Second quarter 2024 cash activity ( 2.1 )

2 unchanged sentences

Balance as of June 30, 2024 $ 32.6

Third quarter 2024 provision, net of reversals 5.2

Reclassified to held for sale (1)

Third quarter 2024 cash activity ( 8.9 )

Foreign currency translation 0.6

Balance as of September 30, 2024 $ 29.9

____________________________________

1 unchanged sentence

Refer to Note 3 for additional information.

Business optimization expenses primarily related to professional services costs incurred as part of the restructuring program aimed to reduce structural costs, enhance global efficiencies by changing the Company’s operating model for certain corporate and back-office functions.

During the three and nine months ended September 30, 2024, the Company recognized approximately $ 5.3 million of business optimization expenses.

Notes to Condensed Consolidated Financial Statements - Continued

7 unchanged sentences

The Company designates 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 $ 386.6 million and $ 262.2 million as of June 30, 2024 and December 31, 2023, respectively.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 234.7 million and $ 262.2 million as of September 30, 2024 and December 31, 2023, respectively.

Steel Commodity Contracts

The Company designates 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 $ 0.1 million and $ 2.5 million as of June 30, 2024 and December 31, 2023, respectively.

The total notional value of derivatives that were designated as cash flow hedges was approximately $ 0.0 million and $ 2.5 million as of September 30, 2024 and December 31, 2023, respectively.

Interest Rate Risk

4 unchanged sentences

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 (loss) during the three and six months ended June 30, 2024 and 2023 (in millions):

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 (loss) during the three and nine months ended September 30, 2024 and 2023 (in millions):

Recognized in Net Income (Loss)

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

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

Other Comprehensive Loss

13 unchanged sentences

Recognized in Net Income (Loss)

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

Nine Months Ended September 30, Gain (Loss) Recognized in Accumulated

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

11 unchanged sentences

____________________________________

(1) The outstanding contracts as of June 30, 2024 range in maturity through December 2024.

(2) As of June 30, 2024, there were no outstanding contracts with future maturity dates.

(1) The outstanding contracts as of September 30, 2024 range in maturity through December 2024.

(2) As of September 30, 2024, there were no outstanding contracts with future maturity dates.

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 June 30, 2024 (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 September 30, 2024 (in millions):

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

Accumulated derivative net gains as of March 31, 2024 $ 8.1 $ 2.0 $ 6.1

Accumulated derivative net gains as of June 30, 2024

$ 6.8 $ 2.7 $ 4.1

Net changes in fair value of derivatives ( 0.1 ) 0.2 ( 0.3 )

Net losses reclassified from accumulated other comprehensive loss into income 2.1 0.2 1.9

Accumulated derivative net gains as of June 30, 2024 $ 6.8 $ 2.7 $ 4.1

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, 2024 (in millions):

Accumulated derivative net gains as of September 30, 2024

$ 8.8 $ 3.1 $ 5.7

The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the nine months ended September 30, 2024 (in millions):

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

2 unchanged sentences

Net losses reclassified from accumulated other comprehensive loss into income 6.2 0.5 5.7

Accumulated derivative net gains as of June 30, 2024 $ 6.8 $ 2.7 $ 4.1

As of June 30, 2024, approximately $ 0.9 million gain and $ 0.1 million loss of realized derivatives, 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.

Accumulated derivative net gains as of September 30, 2024 $ 8.8 $ 3.1 $ 5.7

As of September 30, 2024, approximately $ 3.5 million loss of realized derivatives, before taxes, remain in accumulated other comprehensive loss related to foreign currency contracts associated with inventory that had not yet been sold.

Net Investment Hedges

5 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 $ 265.3 million as of June 30, 2024) 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.

During the six months ended June 30, 2023, the Company designated € 150.0 million of its multi-currency revolving credit facility maturing December 2027 as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment.

At maturity of the cross currency swap contract, the Company was expected to deliver the notional amount of approximately € 247.9 million (or approximately $ 277.0 million as of September 30, 2024) and receive $ 300.0 million from the counterparties.

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

On November 4, 2024, the Company's existing cross currency swap contract was terminated and the Company delivered the notional amount of approximately $ 277.4 million and received $ 300.0 million from the counterparties.

In addition, the Company executed new $ 600.0 million cross currency swap contracts comprising of $ 200.0 million tranche for 3 years tenor, $ 200 million tranche for 5 years tenor and $ 200.0 million tranche for 7 years tenor.

During the nine months ended September 30, 2023, the Company designated € 150.0 million of its multi-currency revolving credit facility maturing December 2027 as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment.

This portion of the multi-currency revolving credit facility was repaid in December 2023.

The Company recognized the change in fair value of the foreign currency denominated debt designated as a net investment hedge, a gain of $ 0.1 million and $ 1.0 million, net of tax, in accumulated other comprehensive loss during the three and six months ended June 30, 2023, respectively.

The Company recognized the change in fair value of the foreign currency denominated debt designated as a net investment hedge, a gain of $ 1.7 million and $ 2.7 million, net of tax, in accumulated other comprehensive loss during the three and nine months ended September 30, 2023, respectively.

Notes to Condensed Consolidated Financial Statements - Continued

1 unchanged sentence

Notional Amount as of

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

Cross currency swap contract $ 300.0 $ 300.0

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, 2024 and 2023 (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 nine months ended September 30, 2024 and 2023 (in millions):

Gain (Loss) Recognized in Accumulated 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 Expense (Benefit)

After-Tax Amount Before-Tax Amount Income Tax Expense (Benefit)

After-Tax Amount

June 30, 2024 $ 3.4 $ 0.8 $ 2.6 $ 8.1 $ 2.0 $ 6.1

June 30, 2023 ( 5.7 ) ( 1.5 ) ( 4.2 ) ( 6.7 ) ( 1.7 ) ( 5.0 )

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

Nine Months Ended

Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount Before-Tax Amount Income Tax Expense (Benefit) After-Tax Amount

September 30, 2024 $ ( 7.1 ) $ ( 1.8 ) $ ( 5.3 ) $ 1.0 $ 0.2 $ 0.8

September 30, 2023 4.1 1.0 3.1 ( 2.6 ) ( 0.7 ) ( 1.9 )

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 June 30, 2024 and December 31, 2023, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 2,645.5 million and $ 3,125.1 million, respectively.

As of September 30, 2024 and December 31, 2023, the Company had outstanding foreign currency contracts with a notional amount of approximately $ 2,710.6 million and $ 3,125.1 million, respectively.

The following table summarizes the results on net income of derivatives not designated as hedging instruments (in millions):

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

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

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

Classification of Gain (Loss)

June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

Foreign currency contracts Other expense, net $ 17.1 $ ( 9.9 ) $ ( 24.7 ) $ 39.2

Notes to Condensed Consolidated Financial Statements - Continued

The table below sets forth the fair value of derivative instruments as of June 30, 2024 (in millions):

The table below sets forth the fair value of derivative instruments as of September 30, 2024 (in millions):

Asset Derivatives as of

June 30, 2024 Liability Derivatives as of

June 30, 2024

September 30, 2024

Liability Derivatives as of

September 30, 2024

Balance Sheet Location Fair Value Balance Sheet Location Fair Value

5 unchanged sentences

Other current assets 2.4 Other current liabilities 5.9

Foreign currency contracts Current assets held for sale 0.2 Current liabilities held for sale 0.1

Total derivative instruments $ 25.8 $ 10.5

__________________________________

(1) The outstanding contracts as of June 30, 2024 range in maturity through August 2024.

(1) The outstanding contracts as of September 30, 2024 range in maturity through November 2024.

The table below sets forth the fair value of derivative instruments as of December 31, 2023 (in millions):

14 unchanged sentences

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 and six months ended June 30, 2024 and 2023 (in millions):

The following tables set forth changes in redeemable noncontrolling interests and stockholders’ equity attributed to AGCO Corporation and its subsidiaries and to noncontrolling interests for the three and nine months ended September 30, 2024 and 2023 (in millions):

Redeemable Noncontrolling Interests

4 unchanged sentences

Interests Total Stockholders’

Balance, March 31, 2024 $ — $ 0.7 $ — $ 6,505.9 $ ( 1,751.5 ) $ 0.1 $ 4,755.2

Balance, June 30, 2024 $ 504.7 $ 0.7 $ 9.2 $ 5,930.6 $ ( 1,886.7 ) $ 0.1 $ 4,053.9

Stock compensation — — 3.8 — — — 3.8

1 unchanged sentence

— — ( 0.6 ) ( 0.1 ) — — ( 0.7 )

Comprehensive income:

Sale of minority interest

— — — — — ( 0.1 ) ( 0.1 )

Other comprehensive income (loss):

Comprehensive income:

Net income (loss) ( 1.1 ) — — 30.0 — — 30.0

Other comprehensive income:

Foreign currency translation adjustments

1.1 — — — 79.9 — 79.9

Defined benefit pension plans, net of tax — — — — 1.9 — 1.9

Defined pension and postretirement benefit plans, net of tax

— — — — 2.0 — 2.0

Deferred gains and losses on derivatives, net of tax

1 unchanged sentence

Payment of dividends to stockholders — — — ( 21.6 ) — — ( 21.6 )

Equity transaction associated with

JCA noncontrolling interest (Note 2)

— — 3.1 — — — 3.1

Initial fair value of redeemable noncontrolling interests (Note 2)

499.4 — — — — — —

Investment by redeemable noncontrolling interest (Note 2)

Redeemable noncontrolling interests measurement period adjustment (Note 2)

( 167.2 ) — — — — — —

Balance, June 30, 2024 $ 504.7 $ 0.7 $ 9.2 $ 5,930.6 $ ( 1,886.7 ) $ 0.1 $ 4,053.9

Balance, September 30, 2024 $ 337.5 $ 0.7 $ 12.4 $ 5,938.9 $ ( 1,803.2 ) $ — $ 4,148.8

Notes to Condensed Consolidated Financial Statements - Continued

Redeemable Noncontrolling Interests

Paid-in Capital

Accumulated Other

Comprehensive Loss

Noncontrolling

Total Stockholders’

Redeemable Noncontrolling Interests Common

Stock Additional

Paid-in Capital Retained

Earnings Accumulated Other

Comprehensive Loss Noncontrolling

Interests Total Stockholders’

Balance, December 31, 2023 $ — $ 0.7 $ 4.1 $ 6,360.0 $ ( 1,708.1 ) $ 0.1 $ 4,656.8

2 unchanged sentences

SSARs exercised — — ( 0.1 ) — — — ( 0.1 )

Sale of minority interest

— — — — — ( 0.1 ) ( 0.1 )

Comprehensive income:

2 unchanged sentences

Foreign currency translation adjustments 0.1 — — — ( 107.2 ) — ( 107.2 )

Defined benefit pension plans, net of tax — — — — 3.6 — 3.6

Defined pension and postretirement benefit plans, net of tax

— — — — 5.6 — 5.6

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

6 unchanged sentences

8.1 — — — — — —

Balance, June 30, 2024 $ 504.7 $ 0.7 $ 9.2 $ 5,930.6 $ ( 1,886.7 ) $ 0.1 $ 4,053.9

Balance, September 30, 2024 $ 337.5 $ 0.7 $ 12.4 $ 5,938.9 $ ( 1,803.2 ) $ — $ 4,148.8

Notes to Condensed Consolidated Financial Statements - Continued

4 unchanged sentences

Interests Total Stockholders’

Balance, March 31, 2023 $ 0.7 $ 24.7 $ 5,863.7 $ ( 1,756.4 ) $ 0.2 $ 4,132.9

Balance, June 30, 2023 $ 0.7 $ 36.1 $ 5,786.8 $ ( 1,684.8 ) $ 0.2 $ 4,139.0

Stock compensation — 10.2 — — — 10.2

7 unchanged sentences

— — — ( 54.5 ) — ( 54.5 )

Defined benefit pension plans, net of tax

Defined pension and postretirement benefit plans, net of tax

— — — 1.9 — 1.9

3 unchanged sentences

— — ( 21.7 ) — — ( 21.7 )

Balance, June 30, 2023 $ 0.7 $ 36.1 $ 5,786.8 $ ( 1,684.8 ) $ 0.2 $ 4,139.0

Balance, September 30, 2023 $ 0.7 $ 46.0 $ 6,045.7 $ ( 1,736.9 ) $ 0.1 $ 4,355.6

Stock Additional

13 unchanged sentences

— — — 64.1 — 64.1

Defined benefit pension plans, net of tax

Defined pension and postretirement benefit plans, net of tax

— — — 5.6 — 5.6

4 unchanged sentences

Adoption of ASU 2016-13 by finance joint ventures — — ( 5.5 ) — — ( 5.5 )

Balance, June 30, 2023 $ 0.7 $ 36.1 $ 5,786.8 $ ( 1,684.8 ) $ 0.2 $ 4,139.0

Balance, September 30, 2023 $ 0.7 $ 46.0 $ 6,045.7 $ ( 1,736.9 ) $ 0.1 $ 4,355.6

Notes to Condensed Consolidated Financial Statements - Continued

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, 2024 (in millions):

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

Accumulated other comprehensive loss, December 31, 2023

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 nine months ended September 30, 2024 (in millions):

Defined Pension and Postretirement Benefit Plans

Deferred Gains and Losses on Derivatives

Cumulative Translation Adjustment Total

Accumulated other comprehensive loss,

December 31, 2023

$ ( 238.6 ) $ ( 0.8 ) $ ( 1,468.7 ) $ ( 1,708.1 )

4 unchanged sentences

5.6 6.5 ( 107.2 ) ( 95.1 )

Accumulated other comprehensive loss, June 30, 2024

Accumulated other comprehensive income (loss),

September 30, 2024

$ ( 233.0 ) $ 5.7 $ ( 1,575.9 ) $ ( 1,803.2 )

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 and six months ended June 30, 2024 and 2023 (in millions):

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 and nine months ended September 30, 2024 and 2023 (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 June 30, 2024 (1)

Three Months Ended June 30, 2023 (1)

Details about Accumulated Other Comprehensive Loss Components Three Months Ended September 30, 2024 (1)

Three Months Ended September 30, 2023 (1)

Net losses on foreign currency contracts $ 2.2 $ 3.0 Cost of goods sold

Net losses on commodity contracts 0.2 0.5 Cost of goods sold

Net losses (gains) on commodity contracts

0.1 ( 0.2 ) Cost of goods sold

Net gains on treasury rate locks

4 unchanged sentences

Reclassification net of tax $ 1.9 $ 2.3

Defined benefit pension plans:

Defined pension and postretirement benefit plans:

Amortization of net actuarial losses $ 2.3 $ 2.2 Other expense, net (2)

6 unchanged sentences

__________________________________

(1) Losses included within the Condensed Consolidated Statements of Operations for the three months ended June 30, 2024 and 2023, respectively.

(1) Losses (Gains) included within the Condensed Consolidated Statements of Operations for the three months ended September 30, 2024 and 2023, respectively.

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

3 unchanged sentences

Statements of Operations

Details about Accumulated Other Comprehensive Loss Components Six Months Ended June 30, 2024 (1)

Six Months Ended June 30, 2023 (1)

Details about Accumulated Other Comprehensive Loss Components Nine Months Ended September 30, 2024 (1)

Nine Months Ended September 30, 2023 (1)

Net losses on foreign currency contracts $ 6.4 $ 6.5 Cost of goods sold

Net losses on commodity contracts 0.2 0.1 Cost of goods sold

Net losses (gains) on commodity contracts

0.3 ( 0.1 ) Cost of goods sold

Net gains on treasury rate locks

4 unchanged sentences

Reclassification net of tax $ 5.7 $ 5.0

Defined benefit pension plans:

Defined pension and postretirement benefit plans:

Amortization of net actuarial losses $ 6.7 $ 6.4 Other expense, net (2)

6 unchanged sentences

__________________________________

(1) Losses included within the Condensed Consolidated Statements of Operations for the six months ended June 30, 2024 and 2023, respectively.

(1) Losses (Gains) included within the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2024 and 2023, respectively.

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

5 unchanged sentences

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, 2024, the Company did no t purchase any shares directly or enter into any accelerated share repurchase agreements.

As of June 30, 2024, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $ 57.0 million, which has no expiration date.

During the three and nine months ended September 30, 2024, the Company did no t purchase any shares directly or enter into any accelerated share repurchase agreements.

As of September 30, 2024, the remaining amount authorized to be repurchased under board-approved share repurchase authorizations was approximately $ 57.0 million, which has no expiration date.

On April 25, 2024, the Company's Board of Directors declared a special variable dividend of $ 2.50 per common share that was paid during the second quarter of 2024.

During the three months ended June 30, 2024 and June 30, 2023, the Company declared and paid cash dividends of $ 2.79 and $ 5.28 per common share, respectively.

During the six months ended June 30, 2024 and June 30, 2023, the Company declared and paid cash dividends of $ 3.08 and $ 5.52 per common share, respectively.

On July 11, 2024, the Company's Board of Directors declared a regular quarterly dividend of $ 0.29 per common share to be paid on September 16, 2024, to all stockholders of record as of the close of business on August 15, 2024.

During the three months ended September 30, 2024 and September 30, 2023, the Company declared and paid cash dividends of $ 0.29 and $ 0.29 per common share, respectively.

During the nine months ended September 30, 2024 and September 30, 2023, the Company declared and paid cash dividends of $ 3.37 and $ 5.81 per common share, respectively.

On October 24, 2024, the Company's Board of Directors declared a regular quarterly dividend of $ 0.29 per common share to be paid on December 16, 2024, to all stockholders of record as of the close of business on November 15, 2024.

Notes to Condensed Consolidated Financial Statements - Continued

2 unchanged sentences

Diluted net income (loss) per common share assumes the exercise of outstanding stock-settled stock appreciation rights ("SSARs") and the vesting of restricted stock unit awards ("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 (loss) per share for the three and six months ended June 30, 2024 and 2023 is as follows (in millions, except per share data):

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

A reconciliation of net income (loss) attributable to AGCO Corporation and subsidiaries and weighted average common shares outstanding for purposes of calculating basic and diluted net income (loss) per share for the three and nine months ended September 30, 2024 and 2023 is as follows (in millions, except per share data):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

14 unchanged sentences

$ 0.40 $ 3.74 $ ( 2.27 ) $ 11.10

At June 30, 2024 and December 31, 2023, the Company had approximately $ 387.1 million and $ 351.2 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, 2024 and December 31, 2023 exclude certain indirect favorable effects that relate to other tax jurisdictions of approximately $ 123.7 million and $ 103.9 million, respectively.

In addition, the gross unrecognized income tax benefits as of June 30, 2024 and December 31, 2023 exclude certain deposits made in a foreign jurisdiction of approximately $ 26.0 million, net of $ 19.1 million refunds received, and $ 26.9 million, net of $ 19.7 million refunds received, respectively, associated with an ongoing audit.

At June 30, 2024 and December 31, 2023, the Company had approximately $ 11.3 million and $ 9.9 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, 2024 and December 31, 2023, the Company had approximately $ 378.3 million and $ 344.2 million, respectively, of accrued taxes reflected in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets.

At September 30, 2024 and December 31, 2023, the Company had approximately $ 398.5 million and $ 351.2 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 September 30, 2024 and December 31, 2023 exclude certain indirect favorable effects that relate to other tax jurisdictions of approximately $ 125.6 million and $ 103.9 million, respectively.

In addition, the gross unrecognized income tax benefits as of September 30, 2024 and December 31, 2023 exclude certain deposits made in a foreign jurisdiction of approximately $ 27.1 million, net of $ 20.0 million refunds received, and $ 26.9 million, net of $ 19.7 million refunds received, respectively, associated with an ongoing audit.

At September 30, 2024 and December 31, 2023, the Company had approximately $ 11.7 million and $ 9.9 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 September 30, 2024 and December 31, 2023, the Company had approximately $ 389.4 million and $ 344.2 million, respectively, of accrued taxes reflected in “Other noncurrent liabilities” 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 June 30, 2024 and December 31, 2023, the Company had accrued interest and penalties related to unrecognized tax benefits of approximately $ 29.7 million and $ 27.9 million, respectively.

At September 30, 2024 and December 31, 2023, the Company had accrued interest and penalties related to unrecognized tax benefits of approximately $ 32.8 million and $ 27.9 million, respectively.

Generally, tax years 2019 through 2023 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 June 30, 2024, a number of income tax examinations in foreign jurisdictions are ongoing.

As of September 30, 2024, a number of income tax examinations in foreign jurisdictions are ongoing.

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

5 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.

In recent decisions, the Brazilian courts have confirmed a favorable tax ruling regarding the taxability of certain state value added tax incentive benefits, which allowed the Company to record a $ 31.7 million reduction in the provision for income taxes during the three months ended June 30, 2024.

In 2008 and 2012, 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.

7 unchanged sentences

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 and six months ended June 30, 2024 and 2023 are set forth below (in millions):

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

Net periodic pension and postretirement benefit cost for the Company’s defined pension and postretirement benefit plans for the three and nine months ended September 30, 2024 and 2023 are set forth below (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

Pension benefits 2024 2023 2024 2023

5 unchanged sentences

Net periodic pension cost $ 4.0 $ 4.9 $ 11.8 $ 14.5

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

Three Months Ended September 30, Nine Months Ended September 30,

Postretirement benefits 2024 2023 2024 2023

5 unchanged sentences

Notes to Condensed Consolidated Financial Statements - Continued

During the six months ended June 30, 2024, the Company made approximately $ 18.4 million of contributions to its defined pension benefit plans.

During the nine months ended September 30, 2024, the Company made approximately $ 22.0 million of contributions to its defined pension benefit plans.

The Company currently estimates its minimum contributions for 2024 to its defined pension benefit plans will aggregate to approximately $ 25.4 million.

During the six months ended June 30, 2024, the Company made approximately $ 0.8 million of contributions to its postretirement health care and life insurance benefit plans.

During the nine months ended September 30, 2024, the Company made approximately $ 1.2 million of contributions to its postretirement health care and life insurance benefit plans.

The Company currently estimates that it will make approximately $ 1.7 million of contributions to its postretirement health care and life insurance benefit plans during 2024.

16 unchanged sentences

See Note 11 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 June 30, 2024 and December 31, 2023 are summarized below (in millions):

As of June 30, 2024

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 are summarized below (in millions):

As of September 30, 2024

Level 1 Level 2 Level 3 Total

6 unchanged sentences

The carrying amounts of long-term debt under the Company’s 1.002 % EIB senior term loan due 2025, EIB senior term loans due 2029 and 2030 and senior term loans due between 2025 and 2028 approximate fair value based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.

At June 30, 2024, the estimated fair value of the Company's 0.800 % senior notes due 2028, based on listed market values, was approximately € 527.3 million (or approximately $ 564.2 million), compared to the carrying value of € 600.0 million (or approximately $ 642.0 million).

At June 30, 2024, the estimated fair value of the Company's 5.450 % senior notes due 2027, based on listed market values, was approximately $ 400.8 million, compared to the carrying value of $ 400.0 million.

At June 30, 2024, the estimated fair value of the Company's 5.800 % senior notes due 2034, based on listed market values, was approximately $ 697.0 million, compared to the carrying value of $ 700.0 million.

At September 30, 2024, the estimated fair value of the Company's 0.800 % senior notes due 2028, based on listed market values, was approximately € 544.5 million (or approximately $ 608.2 million), compared to the carrying value of € 600.0 million (or approximately $ 670.2 million).

At September 30, 2024, the estimated fair value of the Company's 5.450 % senior notes due 2027, based on listed market values, was approximately $ 408.2 million, compared to the carrying value of $ 400.0 million.

At September 30, 2024, the estimated fair value of the Company's 5.800 % senior notes due 2034, based on listed market values, was approximately $ 732.1 million, compared to the carrying value of $ 700.0 million.

See Note 9 for additional information on the Company’s long-term debt.

1 unchanged sentence

COMMITMENTS AND CONTINGENCIES

Lease payment amounts for operating and finance leases with remaining terms greater than one year, including leases classified as held for sale, as of June 30, 2024 and December 31, 2023 were as follows (in millions):

June 30, 2024 December 31, 2023

Lease payment amounts for operating and finance leases with remaining terms greater than one year, including leases classified as held for sale, as of September 30, 2024 and December 31, 2023 were as follows (in millions):

September 30, 2024 December 31, 2023

Operating Leases (1)

15 unchanged sentences

Off-Balance Sheet Arrangements

At June 30, 2024, the Company had outstanding guarantees issued to its Argentine finance joint venture, AGCO Capital Argentina S.A.

At September 30, 2024, the Company had outstanding guarantees issued to its Argentine finance joint venture, AGCO Capital Argentina S.A.

(“AGCO Capital”), of approximately $ 60.5 million.

3 unchanged sentences

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

In addition, at June 30, 2024, the Company had accrued approximately $ 12.6 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 September 30, 2024, the Company had accrued approximately $ 13.0 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 $ 193.1 million.

At June 30, 2024, the Company had outstanding designated and non-designated foreign exchange contracts with a gross notional amount of approximately $ 3,032.1 million.

The outstanding contracts as of June 30, 2024 range in maturity through December 2024.

The Company also had outstanding designated steel commodity contracts with a gross notional amount of approximately $ 0.1 million that have matured and will settle in July 2024.

As of June 30, 2024, there were no designated steel commodity contracts outstanding with future maturity dates.

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.

21 unchanged sentences

Notes to Condensed Consolidated Financial Statements - Continued

Significant changes in the balance of contract liabilities for the three and six months ended June 30, 2024 and 2023 were as follows (in millions):

Three Months Ended June 30,

Significant changes in the balance of contract liabilities for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):

Three Months Ended September 30,

Balance at beginning of period $ 331.7 $ 274.6

4 unchanged sentences

Foreign currency translation 8.9 ( 5.8 )

Balance at June 30 $ 331.7 $ 274.6

Six Months Ended June 30,

Balance at September 30 $ 346.6 $ 284.6

Nine Months Ended September 30,

Balance at beginning of period $ 310.7 $ 239.0

4 unchanged sentences

Foreign currency translation 2.8 ( 1.1 )

Balance at June 30 $ 331.7 $ 274.6

Balance at September 30 $ 346.6 $ 284.6

____________________________________

2 unchanged sentences

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 and six months ended June 30, 2024, the Company recognized approximately $ 38.1 million and $ 71.3 million of revenue that was recorded as a contract liability at the beginning of 2024.

During the three and six months ended June 30, 2023, the Company recognized approximately $ 34.3 million and $ 70.0 million of revenue that was recorded as a contract liability at the beginning of 2023.

During the three and nine months ended September 30, 2024, the Company recognized approximately $ 35.7 million and $ 106.9 million of revenue that was recorded as a contract liability at the beg inning of 2024.

During the three and nine months ended September 30, 2023, the Company recognized approximately $ 26.9 million and $ 96.9 million of revenue that was recorded as a contract liability at the beginning of 2023.

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 June 30, 2024 are $ 65.5 million for the remainder of 2024, $ 116.2 million in 2025, $ 79.3 million in 2026, $ 41.1 million in 2027 and $ 19.9 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 September 30, 2024 are $ 47.3 million for the remainder of 2024, $ 117.4 million in 2025, $ 94.0 million in 2026, $ 49.7 million in 2027 and $ 28.6 million ther eafter, 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 June 30, 2024 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Net sales for the three months ended September 30, 2024 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America (1)

27 unchanged sentences

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the three months ended June 30, 2023 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Net sales for the three months ended September 30, 2023 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America

1 unchanged sentence

Europe/Middle East Asia/Pacific/Africa

Consolidated (1)

Primary geographical markets:

21 unchanged sentences

$ 941.1 $ 719.8 $ 1,586.9 $ 207.7 $ 3,455.5

____________________________________

(1) Rounding may impact the summation of amounts.

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the six months ended June 30, 2024 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Net sales for the nine months ended September 30, 2024 disaggregated by primary geographical markets and major products consisted of the following (in millions):

North America

24 unchanged sentences

$ 2,303.5 $ 1,033.9 $ 4,930.1 $ 507.1 $ 8,774.6

____________________________________

(1) Rounding may impact the summation of amounts.

Notes to Condensed Consolidated Financial Statements - Continued

Net sales for the six months ended June 30, 2023 disaggregated by primary geographical markets and major products consisted of the following (in millions):

Net sales for the nine months ended September 30, 2023 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

30 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 and six months ended June 30, 2024 and 2023 and assets as of June 30, 2024 and December 31, 2023 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 Total Segments

Segment results for the three and nine months ended September 30, 2024 and 2023 and assets as of September 30, 2024 and December 31, 2023 based on the Company’s reportable segments are as follows (in millions):

Three Months Ended September 30, North America South America Europe/Middle East Asia/Pacific/Africa Total Segments

Net sales $ 736.1 $ 381.6 $ 1,298.2 $ 183.4 $ 2,599.3

6 unchanged sentences

Capital expenditures 25.0 15.4 79.5 0.8 120.7

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

Nine Months Ended September 30, North America South America Europe/Middle East Asia/Pacific/Africa Total Segments

Net sales $ 2,303.5 $ 1,033.9 $ 4,930.1 $ 507.1 $ 8,774.6

6 unchanged sentences

Capital expenditures 96.7 49.2 209.3 2.5 357.7

As of June 30, 2024 $ 1,973.2 $ 1,266.9 $ 3,314.5 $ 903.5 $ 7,458.1

As of September 30, 2024 $ 1,958.5 $ 1,261.5 $ 3,336.7 $ 894.0 $ 7,450.7

As of December 31, 2023 1,883.2 1,394.9 3,017.4 875.2 7,170.7

Notes to Condensed Consolidated Financial Statements - Continued

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

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

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 September 30, Nine Months Ended September 30,

2024 2023 2024 2023

6 unchanged sentences

Stock compensation expense ( 5.0 ) ( 9.8 ) ( 20.4 ) ( 36.1 )

Restructuring expenses ( 30.2 ) ( 6.1 ) ( 31.2 ) ( 7.5 )

Consolidated income (loss) from operations

Restructuring and business optimization expenses

( 10.5 ) ( 0.8 ) ( 41.7 ) ( 8.3 )

June 30, 2024 December 31, 2023

Consolidated income from operations

$ 114.8 $ 423.6 $ 146.7 $ 1,307.3

September 30, 2024 December 31, 2023

Segment assets $ 7,450.7 $ 7,170.7

7 unchanged sentences

____________________________________

(1) Represents non-segment assets related to the Company's G&P business, which the Company has classified as held for sale as of June 30, 2024.

(1) Represents non-segment assets related to the Company's G&P business, which the Company has classified as held for sale since June 30, 2024.

Segment assets include the G&P assets held for sale.

1 unchanged sentence

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