CULTIVATING
A GREATER
FUTURE
2013 ANNUAL REPORT
BY CLOSING THE
PRODUCTIVITY GAP
Population growth is driving demand in many of the world’s
emerging agricultural markets. Yet, crop yields in these markets
are considerably less than in the U.S. Helping to narrow this
spread is a significant opportunity for AGCO.
CORN YIELDS
United States vs. Rest of World
4X
United States
Rest of World
1
ABOUT AGCO
The AGCO brand is one of the most respected in the world. And why wouldn’t it be? With five core
brands — Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra® and approximately 3,100 dealers
located in over 140 countries, it’s no wonder AGCO is one of the leaders in global agriculture.
Without question, we offer some of the most innovative, productive farming equipment on earth,
including tractors, combines, hay tools, sprayers, planters, forage equipment, grain storage and
protein production equipment, tillage implements and replacement parts. But there’s so much
more to it than making products and parts — we are doing our part in making the world a better,
more sustainable place to be.
No job is too big for us. No challenge too daunting. It is with this attitude and spirit that we do what
we do, each and every day. For the farmers. For our shareholders. For ourselves. For the future.
That’s why we are proud to say that we are Leading the way. Fearlessly.
R&D SPENDING
($ millions)
$353
$317
$276
$220
$195
$192
$155
$122
$128
$104
’04
’05
’06
’07
’08
’09
’10
’11
’12
’13
BY HARVESTING THE
GRAIN OPPORTUNITY
Harvest and storage are critical phases in the grain value chain
where unnecessary crop losses occur, especially in developing
markets. GSI offers solutions for storage to curb grain losses and
enhance protein production businesses.
BY FUSING FARMING
WITH TECHNOLOGY
Precision technologies are a key link to higher farm productivity.
Enter our aptly named Fuse™ Technologies — a strategy to
connect farm equipment into a seamless solution to optimize
performance and efficiency — and an example of how our R&D
investment is transforming the farm and its operations.
PERCENTAGE OF
GRAIN HARVEST LOST
14%
North Africa,
West & Central Asia
Industrialized Asia
12%
10%
Latin America
North America
4%
2 AGCO 2013 ANNUAL REPORT
3
BY REACHING OUT
MORE STRATEGICALLY
Growth markets are AGCO markets. We’re focused on getting the
most relevant products and technologies to where they can make
the most difference: regions that have rapidly increasing demand
and a need to exponentially improve productivity.
RUSSIA
Vast amounts of arable land,
but investment in farm equipment
significantly lags that of
developed markets.
BRAZIL
The world’s tenth-largest economy,
second-largest soybean
producer and a robust
sugarcane industry.
GLOBAL
OPPORTUNITY
AFRICA
A fifth of the world’s people and
a significant amount of the
world’s uncultivated land.
4 AGCO 2013 ANNUAL REPORT
ASIA
Higher incomes and protein-oriented
diets are on the rise, creating more
pressure on grain supplies
for animal feed stock.
4.8%
2010
7.0%
2011
7.2%
2012
8.4%
2013
3.6%
2009
ADJUSTED
OPERATING MARGIN*
$$
$
Trending up by keeping costs down. That’s the idea behind our
initiatives to drive higher margins through global purchasing
excellence, an improved product development platform and
continuous manufacturing improvements. The goal: a higher
return on invested capital for our shareholders.
BY OPERATING ON
A GREATER MARGIN
*See reconciliation on the inside back cover of this report.
5
CULTIVATING A
GREATER FUTURE ON
A SOLID FOUNDATION
GROWING
World.
w
w
SALES
$10.0
2012
$10.8
2013
ADJ.
EPS*
$5.25
2012
$6.01
2013
GROWING
Demand.
GROWING
AGCO.
STOCK
PRICE
DECEMBER 31,
$49.12
2012
$59.19
2013
We’re investing today to help our customers deliver the food, fuel and
fiber that the world needs tomorrow. In the process, we’re executing in
a disciplined, methodical manner. The goal: sustained business growth
for our shareholders — now and in the future.
6 AGCO 2013 ANNUAL REPORT
*For reconciliation of adjusted earnings per share, see footnote 1 on page 26.
7
FELLOW
SHAREHOLDERS
Increasing population. Per capita income growth. Changing diets. Renewable
energy demand. Economic expansion into China and India. I have been
highlighting these trends for a decade and explaining how they will significantly
increase global demand for grain and improve farm economics.
It is an environment in which AGCO can thrive. Our
focus on high-tech solutions for farmers feeding the
world presents us with tremendous opportunities.
We are moving to capitalize on these opportunities
by delivering on our strategic initiatives.
FINANCIAL RESULTS
2013 was a great year of accomplishment, marked by
innovation across our business, record financial results and
numerous other important steps to position the Company
for the future. In 2013, sales grew approximately 8 percent
to a record $10.8 billion and earnings per share reached
$6.01, increasing approximately 13 percent compared to
2012. Healthy farm economics across the globe produced
sales growth in all of AGCO’s operating regions. Operating
margins improved over 100 basis points to 8.4 percent,
demonstrating substantial progress toward our 10 percent
target. We also generated strong free cash flow after funding
significant investments in new product development, Tier 4
engine emission compliance, new technology in some of our
factories and market development activity in China.
COMMITTED TO IMPROVING SHAREHOLDER RETURNS
When I joined AGCO 10 years ago, our strategy shifted to
focus on organic growth and increased investment in our
products and manufacturing capabilities. A decade later,
sales have tripled, and the Company has grown earnings
nearly five times. These improved financial results have
translated into attractive returns for shareholders, with
share price growth of 13 percent on a compound basis —
a nice premium to the S&P 500. Returning cash to share-
holders is also an important component of investment
returns. A healthy balance sheet and improved U.S. cash
flow generation capacity enabled AGCO to launch a sizable
share repurchase program and to increase our dividend
during 2014 — further demonstrating our commitment
to drive attractive shareholder returns. Going forward,
we will take a disciplined approach to maintain our invest-
ment-grade credit rating, grow our dividend and continue
share repurchases.
EXECUTING A SUCCESSFUL STRATEGY
Being successful requires consistent execution against
strategic principles, which are driven by vision and mission.
Our clear vision at AGCO is to provide high-tech solutions
for professional farmers feeding the world. We accomplish
this by providing agricultural equipment that increases
the efficiency and productivity of our customers. AGCO
is dedicated to providing farmers the expertise they need
to be successful. To ensure AGCO continues to improve
its competitive position and its performance, we have put
initiatives in place to grow our sales, reduce costs and better
utilize capital. Equally as important, we are investing in new
products, new technology and improved distribution to expand
our margins and produce higher returns.
POSITIONED FOR GROWTH IN EMERGING MARKETS
Significant opportunity exists for our equipment to help
improve yields in emerging agricultural regions around the
world. In Brazil, agriculture continues to be an important
part of the economy and a source of future growth. Brazil
will benefit from the world’s growing demand for both food
and fuel, and AGCO will benefit from its leadership position
in this market.
There is an immense amount of land in Russia, Ukraine
and Kazakhstan being farmed with inefficient machinery
and inadequate storage and handling capabilities. During
2013, we took an important step toward expanding our
business in Russia by signing an agreement to form a
joint venture with a leading Russian industrial company,
Russian Machines Corporation. Our joint venture partner
will provide access to their supply chain, improve our local
manufacturing capabilities, help strengthen our dealer
network and provide local market expertise.
Farm consolidation in China has started, and demand for
farm equipment is developing rapidly. In 2013, AGCO began
assembling tractors in a leased facility in Changzhou, China.
In 2014, we will open a new greenfield manufacturing
plant that will serve the local market while also supplying
components, sub-assemblies and complete tractors for
our new mid-size tractor platform globally. Finally, in Africa,
we have strengthened our position by establishing manu-
facturing capabilities in Algeria, investing in improved
distribution and parts support, training local farmers on
our model farm in Zambia and promoting international
investment by sponsoring an annual Africa Summit in Berlin.
INVESTING IN TECHNOLOGY
Innovation initiatives are focused on projects that provide
our customers with solutions to meet their need for improved
efficiency, productivity and profitability. Increasingly, farmers
are operating their farms like modern factories — accelerating
the use of precision farming and fleet-management tech-
nology to improve productivity. To lead this transformation,
we have launched a new strategy named Fuse Technologies.
This strategic platform is a commitment to provide customer
solutions that optimize, coordinate and seamlessly connect
their equipment and their farm. Fuse will connect all of
AGCO’s technologies, including guidance, telematics, diag-
nostics, seeding and application controls, yield monitoring,
mobile apps and grain and protein management.
GROWING THROUGH GRAIN STORAGE
AND PROTEIN PRODUCTION SOLUTIONS
Substantial growth opportunities exist in both the protein
production and grain storage sectors due to inefficiencies
in the developing markets. Significant crop losses occur
due to spillage and degradation during handling, storage
and transportation. Our GSI products provide handling,
conditioning and storage solutions to help customers reduce
these post-harvest losses. Similar growth opportunities
exist for GSI’s protein production offering. GSI chicken and
pork production solutions — including nutrition, health,
housing, feeding and environmental control — provide a
significant opportunity to help our customers advance the
efficiency of their operations.
IMPROVING ROIC
We launched strategic initiatives aimed at improving
each of the building blocks that drive return on invested
capital (ROIC). For AGCO, the key to higher ROIC is improved
operating margins. We aim to reach our 10 percent goal
by addressing a wide range of margin improvement oppor-
tunities. These strategies include cost reduction from
purchasing actions, factory productivity and new product
development. In addition, sales growth achieved through
success in emerging markets, as well as improved products
and enhanced distribution is an important element of our
margin improvement roadmap.
COMMITTED TO SUSTAINABILITY
Globally, AGCO provides technologies that help farmers
maximize yields, reduce loss and conserve the resources
that are key to meeting the growing need for food, fuel
and fiber. We integrate sustainability into our business by
evolving our operations to upgrade efficiency and resource
management, as well as foster a safe, inclusive and produc-
tive workplace. Our employees throughout the world are
key partners in this journey. We look to them for new ideas
to enhance efficiency, reduce costs, eliminate waste and
create whole-farm technology solutions for our customers.
Also, we have committed to strengthening relationships
with preferred suppliers that support product quality,
environmental stewardship and high labor standards.
In closing, I would like to thank you for your investment
in AGCO. I am also grateful to our customers, dealers and
suppliers for their enduring relationships with us. Please
know that we are working every day to create value. We see
an unprecedented amount of long-term opportunity for the
agricultural industry. Although much work remains, our
products are making a difference to enable our customers
to grow their businesses and help feed the world.
Martin Richenhagen
Chairman, President and Chief Executive Officer
8 AGCO 2013 ANNUAL REPORT
9
WHAT OUR FUTURE
LOOKS LIKE TODAY
CRITICAL
That’s the role our customers will play in the coming decades.
Farmers must help meet the world’s increasing need for food, fuel and fiber.
We are in a unique position to help them and, in the process, create value for our shareholders.
STRONG
Adjusted EPS*
Growing global
population is driving
food demand.
By 2030, food demand
will increase 60 percent
compared to 2012.*
Greater demand for
renewable materials is
further driving crop demand.
By 2020, global meat
consumption will be
four times that of 2010.*
The Result:
More Demand for
FOOD, FUEL & FIBER
AGCO
Provides solutions
for more efficient and
productive farming
*Facts referenced from: Solving The Global Food Challenge, 2013.
10 AGCO 2013 ANNUAL REPORT
SUSTAINABLE
Today’s resources must meet tomorrow’s needs. We’re finding
ways to reduce the carbon emissions and use of energy, water
and materials associated with the use of our products, as well
as in our own operations and supply chain. The result: better
environmental stewardship and a more efficient, more competitive
business proposition for AGCO and our customers. We also
strive to be a socially responsible organization — one that works
toward the highest standards for how we conduct ourselves in the
workplace and the communities in which we operate. To keep us
focused on making measurable progress, we’ve committed to a
set of specific goals to meet in the coming years.
Decrease energy intensity
10 percent by 2017
Decrease operational
greenhouse gas intensity
10 percent by 2017
$2.32
2010
$4.48
2011
$5.25
2012
$6.01
2013
Adjusted earnings per share have grown at 37.3 percent
on a compound annual growth rate basis since 2010.
GLOBAL
2013 Sales by Geographic Region
EAME: 51%
North America: 25%
South America: 19%
Asia/Pacific: 5%
We have an established presence throughout the
world’s agricultural growing regions.
DIVERSIFIED
2013 Sales by Product
Reduce operational waste
10 percent by 2015
Increase parts remanufacturing
business growth by 2015
Tractors: 60%
Replacement Parts: 13%
Other Machinery: 9%
Grain Storage and Protein
Production Equipment: 7%
Combines: 6%
Application Equipment: 5%
Our product portfolio provides customers with
comprehensive solutions to support their farms.
*For reconciliation of adjusted earnings per share, see footnote 1 on page 26.
Expand product life cycle
thinking to include environmental
impact review for new product
development projects.
Achieve 1.5 lost-time
injury frequency rate by 2015
11
LEVERAGING
A GLOBAL
PRESENCE
More people. More food. More farm productivity. It’s a simple but compelling
growth opportunity. We’re leveraging our global presence to turn this potential
into reality, especially in developing markets. Here, professional farm machinery
is key to boosting agricultural productivity and reducing post-harvest waste.
Though specific needs vary from market to market, our common approach is
to partner fully with every customer through every phase of the farming process.
NORTH AMERICA
SOUTH AMERICA
EAME
ASIA/PACIFIC
25%
GLOBAL SALES
1,300
DEALERS
19%
GLOBAL SALES
340
DEALERS
51%
GLOBAL SALES
1,160
DEALERS
5%
GLOBAL SALES
300
DEALERS
Core brands distributed: Challenger, Fendt, GSI,
Massey Ferguson
Core brands distributed: Challenger, GSI,
Massey Ferguson, Valtra
Core brands distributed: Challenger, Fendt, GSI,
Massey Ferguson, Valtra
Core brands distributed: Challenger, Fendt, GSI,
Massey Ferguson, Valtra
Main crops: Wheat, hay, corn, canola, soybeans, cotton,
dairy and livestock
2013 Performance: Net sales were $2.76 billion, up
approximately 6.7 percent compared to 2012. Sales were
strongest in the row crop segment, with the most significant
increases in sprayers, high-horsepower tractors, grain storage
equipment and implements. Increased net sales, a favorable
sales mix and margin improvement initiatives all contributed
to growth of $66.0 million in income from operations.
Main crops: Soybeans, sugarcane, corn, coffee
Main crops: Wheat, barley, corn, oil seeds, dairy and livestock
2013 Performance: Net sales were $2.04 billion, a
9.9 percent increase over 2012. Sales were higher in both
Brazil and Argentina, with growth mainly in high-horsepower
tractors, sprayers and grain storage equipment. Income
from operations increased $51.1 million compared to
2012, due to higher sales volumes and the benefit of
cost-reduction initiatives.
2013 Performance: Net sales were $5.48 billion, an
increase of 8.0 percent from 2012. Improved production
capacity at the Fendt facility in Germany generated most of the
increase. Higher sales in France and Germany were partially
offset by declines in Central and Eastern Europe. EAME’s income
from operations increased $83.3 million compared to 2012 as
a result of higher net sales and improved production efficiency,
partially offset by higher engineering expenses.
Main crops: Cereal grains, rice, palm oil, corn, sugarcane,
dairy and livestock
2013 Performance: Net sales were $507.9 million,
13.3 percent higher compared to the same period in 2012.
Growth in China, East Asia and Australia produced most
of the increase. Income from operations declined by
$9.7 million from 2012 due to manufacturing startup
costs and market development expenses in China offsetting
higher net sales.
12 AGCO 2013 ANNUAL REPORT
13
INVESTING IN
TECHNOLOGY AND
NEW PRODUCTS
The farm is getting smarter. Using wireless data communications, our innovative solutions
are delivering seamless connectivity across farm assets. We have significantly increased
our technology investment to launch Fuse Technologies, a strategic approach to precision
farming with the potential to enhance agricultural productivity and profitability. In addition,
we delivered our first product fitted with a Tier 4 Final AGCO Power engine in 2013. Our
leading AGCO Power Selective Catalytic Reduction (SCR)-based technology produces
cleaner emissions, efficient operation and uncompromised performance.
GRAIN STORAGE
AND MONITORING
To save time and increase efficiency,
AgCommand® geofence alerts farmers
by email on a mobile device when a
grain truck leaves the bin area.
CROP CARE AND
NUTRIENT APPLICATION
Tools enable wireless loading of the
planned application maps, streamlining
task and file management.
DEALER/DECISION SUPPORT
Connecting farmers with their dealers and
preferred service providers, offering the
freedom and convenience to continue
working with trusted business partners.
CROP HARVESTING
Pre-planned tasks can be sent wirelessly to
the combine, then a yield map is sent back
to the office to streamline management.
FARM OFFICE
Our open approach means flexibility to use
the Farm Management Information Software
(FMIS) of the farmer's choice, for total farm
management and streamlined logistics.
TILLAGE AND FIELD PREP
Auto-Till™ monitors information about
implement depth, allowing the operator to
ensure the implement is leveled correctly
to ensure optimal performance.
MOBILE
In the office, in the field or on the go, Fuse
Technologies keeps the operation running
smoothly, allowing farmers to check the
status of a machine remotely.
PLANTING
Our guidance systems ensure the planter and
drill apply the seed in the right place and at
optimal row spacing to minimize inputs and
missed field areas.
14 AGCO 2013 ANNUAL REPORT
15
Fuse Technologies provides seamless connectivity across a farm enterprise and through
every phase of the crop cycle. An open approach enables farmers to connect with their
third-party service providers and farm management information system platforms. This
ensures mobile and stationary equipment is in the right place at the right time and
running at optimum efficiency.
GROWING
THE GSI PLATFORM
Turning loss into gain – that’s the GSI opportunity. GSI handling, conditioning,
storage and protein production solutions help grain producers reduce post-harvest
loss and protein producers better manage their business. Storage and handling
equipment is required in every phase of the grain processing cycle. This means
storage capabilities in excess of 100 percent of harvest capacity are frequently
necessary. Initiatives are underway around the world to help customers ensure
that the grain they grow gets to market.
INCREASED
STORAGE
CAPACITY
Brazil is a leading global grain producer that has made significant
strides in production, but its post-harvest handling, conditioning
and storage have not kept pace. Today, Brazil has the capacity
to store only 75 percent of its harvest. To address this challenge,
the Brazilian government has introduced a $12 billion, multi-year
financing program to promote increased investment in grain
storage. Even with this support, it is estimated that the storage
gap may require up to 10 years to close.
GREATER
MARKET
FLEXIBILITY
Because of GSI’s exceptional grain storage solutions, farmers are
better able to control the price at which they sell their crops. Proper
storage means that farmers can wait for optimal market conditions
before selling their grain. Optimal market conditions translate into
optimal profitability for farmers, which enables them to reinvest
more in their business.
OPTIMIZED
PROTEIN
PROCESSING
Swine and poultry production practices — including genetics,
nutrition, health, housing, feeding and environmental control —
vary around the world. U.S. productivity, for example, exceeds that
of China by more than 50 percent. Feed handling and storage is
a factor. As swine and poultry production in developing markets
consolidates, GSI can provide modernized equipment and practices
to help suboptimal operations increase their productivity.
16 AGCO 2013 ANNUAL REPORT
17
IMPROVING
DISTRIBUTION
Reach further. Stay closer. Our network of more than 3,100 independent
dealers and distributors ensures that our global reach extends around the
world and provides a local link to our customers. In addition to making our
products available, dealers provide critical support for after-market parts
and service. During 2013, we continued to strengthen our dealer network.
In North America, we are focused on streamlining and
consolidating dealerships around a distribution strategy for
each local selling area. Today, our North American distri-
bution is two-pronged. The first prong is our legacy Massey
Ferguson dealerships, which offer a full line of wheeled
tractor, harvesting, seeding and tillage products that serve
customers ranging from small, lifestyle farmers to large
corporate enterprises. The other prong is our Challenger
dealerships that target large professional farming operations.
The Challenger network offers sprayers, tracked and wheeled
tractors, harvesting, seeding and tillage products primarily
through the Caterpillar dealer network.
Retail finance solutions are an important part of our
customer support proposition. AGCO Finance offers loan
and lease financing to farmers for equipment purchases.
In 2013, we extended our finance services into Central
Europe, initially to customers in the Czech Republic,
Slovakia, Romania and Bulgaria. Our plans call for
extending finance solutions throughout the region in
the future, including the Baltic and Balkan countries.
18 AGCO 2013 ANNUAL REPORT
19
REDUCING COSTS AND
OPTIMIZING
WORKING CAPITAL
Higher margins. Higher returns. High priority. We’re committed to achieving
operating margin growth in order to drive higher returns on invested capital for
our shareholders. Top-line sales growth — primarily achieved through emerging
market opportunities and improved products and distribution — is one factor
in our margin equation. The other involves a relentless focus on cost reduction
and improved productivity, which we are realizing on numerous fronts.
SUPPLY CHAIN EXCELLENCE
With a material spend that comprises approximately 75 percent of
sales, supply chain improvements can make a significant impact on
cost structures. Our Global Purchasing Excellence program, which
moved the purchasing function from the factory level to a global
commodities team, is successfully making better-informed buying
decisions at lower costs. Another initiative that involves best-country
sourcing is gaining traction and targets a 15 to 20 percent cost
savings on components and parts sourced from suppliers around
the world.
MANUFACTURING OPTIMIZATION
The AGCO Production System (APS) is designed to
help reduce delivery lead times and costs, while
improving product quality. As part of APS, we have
completed the rollout of Six Sigma and Lean in our
manufacturing facilities. In addition, APS enables
the sharing of best practices across our sites and
engages employees in process improvements.
NEW PRODUCT DEVELOPMENT
In 2014, our new mid-range tractor platform will begin
to deliver a new family of mid-sized tractors based on
a modular, more flexible manufacturing platform. This
approach leverages common architecture; makes more
effective use of our R&D investment; requires fewer parts;
reduces material costs; and ultimately leads to better
brand differentiation. For our customers, this approach
delivers better value through more consistent quality and
technological innovation. With initial manufacturing sites
in place, this family of products will roll out over a three-
year period. Longer term, we plan to incorporate this
approach across additional product lines.
FACILITY INVESTMENTS
Our growth investments include a three-year expansion of our tractor
and sprayer assembly facility in Jackson, Minnesota, to increase capacity
by 20 percent and improve process efficiency. In Hesston, Kansas, we
completed a project that provides the most advanced coating application
center in the North American agricultural machine industry.
Our plant in Santa Rosa, Brazil, also received a new painting system
based on nanotechnology, and we opened a new factory in Argentina,
where we will develop a base of local suppliers, dealers and AGCO staff
during the next five years. Finally, our Massey Ferguson brand opened a
dedicated cab production facility in Beauvais, France, which increases
production space by 25 percent and houses a sales training center. Each
of these investments underscores our commitment to boost productivity
and efficiency through improved processes and distribution.
20 AGCO 2013 ANNUAL REPORT
21
OFFICERS & DIRECTORS
Directors Since October 2013 – Michael C. Arnold and Roy V. Armes.
SENIOR MANAGEMENT
Martin H. Richenhagen
Chairman, President and
Chief Executive Officer
Roger N. Batkin
Vice President,
General Counsel
and Corporate Secretary
Andrew H. Beck
Senior Vice President,
Chief Financial Officer
Andre M. Carioba
Senior Vice President,
General Manager, South America
Gary L. Collar
Senior Vice President,
General Manager, Asia Pacific
Robert B. Crain
Senior Vice President,
General Manager, North America
Helmut R. Endres
Senior Vice President,
Engineering
Eric P. Hansotia
Senior Vice President,
Global Harvesting and
Advanced Technology Solutions
Lucinda B. Smith
Senior Vice President,
Global Business Services
Rob Smith
Senior Vice President,
General Manager, Europe,
Africa and Middle East
Hans-Bernd Veltmaat
Senior Vice President,
Chief Supply Chain Officer
Thomas F. Welke
Senior Vice President,
Global Grain and Protein, GSI
Mallika Srinivasan
Chairman and CEO
Tractors and Farm Equipment Limited (TAFE)
Hendrikus Visser
Chairman
Royal Huisman Shipyards N.V.
BOARD OF DIRECTORS
Martin H. Richenhagen
Chairman, President and
Chief Executive Officer
AGCO
Roy V. Armes
Chairman, President and CEO
Cooper Tire and Rubber Company
Wolfgang Deml
Former President and
Chief Executive Officer
BayWa Corporation
Luiz Fernando Furlan
Member of the Board
BRF Brasil Foods, S. A.
Michael C. Arnold
President and CEO
Ryerson Inc.
P. George Benson
President
College of Charleston
George E. Minnich
Former Senior Vice President and CFO
ITT Corporation
Gerald L. Shaheen
Former Group President
Caterpillar Inc.
AGCO 2013 BOARD COMMITTEES
Executive Committee
Martin H. Richenhagen, Chairman
P. George Benson
Wolfgang Deml
George E. Minnich
Gerald L. Shaheen
Governance Committee
P. George Benson, Chairman
Michael C. Arnold
Wolfgang Deml
Mallika Srinivasan (Guest)
Hendrikus Visser
22 AGCO 2013 ANNUAL REPORT
Compensation Committee
Gerald L. Shaheen, Chairman
Roy V. Armes
Luiz Fernando Furlan
George E. Minnich
Audit Committee
George E. Minnich, Chairman
Michael C. Arnold
P. George Benson
Hendrikus Visser
Succession Planning Committee
Wolfgang Deml, Chairman
Roy V. Armes
Luiz Fernando Furlan
Martin H. Richenhagen
Gerald L. Shaheen
Mallika Srinivasan
23
CULTIVATING A FUTURE BUILT ON
EXCELLENCE
A sampling of honors that AGCO products and people received in 2013.
FORWARD-LOOKING STATEMENTS
This annual report includes forward-looking statements,
including the statements in the Chairman’s Message and
other statements in this report regarding market demand,
farm productivity, production levels, strategic initiatives
and their effects, margin growth, and general economic
conditions. These statements are subject to risks that
could cause actual results to differ materially from those
suggested by the statements, including:
Our financial results depend entirely upon the agricultural
industry, and factors that adversely affect the agricultural
industry generally, including declines in the general economy,
increases in farm input costs, lower commodity prices and
changes in the availability of credit for our retail customers,
will adversely affect us. The poor performance of the
general economy has adversely impacted our sales and
may continue to have an adverse impact on our sales in
the future, the extent of which we are unable to predict,
and there can be no assurance that our results will not
continue to be affected by the weakness in global eco-
nomic conditions. Our success depends on the introduction
of new products, which requires substantial expenditures
and may not be well received in the marketplace.
We face significant competition, and if we are unable to
compete successfully against other agricultural equipment
manufacturers, we would lose customers and our revenues
and profitability would decline.
of the retail sales of our products is financed by our retail
finance joint ventures with Rabobank, and any difficulty
on Rabobank’s part to fund the venture would adversely
impact sales if our customers would be required to utilize
other retail financing providers. We depend on suppliers
for raw materials, components and parts for our products,
and any failure by our suppliers to provide products as
needed, or by us to promptly address supplier issues,
will adversely impact our ability to timely and efficiently
manufacture and sell products.
A majority of our sales and manufacturing takes place
outside the United States, and, as a result, we are exposed
to risks related to foreign laws, taxes, economic conditions,
labor supply and relations, political conditions and govern-
mental policies. These risks may delay or reduce our
realization of value from our international operations.
Volatility with respect to currency exchange rates and
interest rates can adversely affect our reported results
of operations and the competitiveness of our products.
We are subject to extensive environmental laws and
regulations, and our compliance with, or our failure to
comply with, existing or future laws and regulations could
delay production of our products or otherwise adversely
affect our business.
Most of our sales depend on the retail customers’ obtaining
financing, and any disruption in their ability to obtain
financing, whether due to economic downturns or otherwise,
will result in the sale of fewer products by us. A large portion
We are subject to raw material price fluctuations, which
can adversely affect our manufacturing costs.
We disclaim any obligation to update forward-looking
statements except as required by law.
Fendt 500 Vario and X 9480 Combines, Machine of the Year
Fendt Flexible Flat-Sealing Hydraulic System, Silver Medal
Massey Ferguson Delta Combine Machine of the Year
2013 Agritechnica
AGCO Changzhou, Best Design
Farmer’s Daily 2013 China‘s Customers Most Favoured
Ag Machinery Brand
MF-T7, MF1844S, 4YZP-4N, Recommended New Product Award
2013 China International Automobile Manufacturing Exposition
MF7624, New Product Award
2013 China Jiangsu International Agricultural Machinery Fair
Nina Pathy, AGCO Director, Global Parts Data and Parts Books
Tammie Nelson, AGCO Welding Technician
The Manufacturing Institute’s Women in Manufacturing STEP Award
for Excellence in Leadership in Manufacturing
Fendt Roll-Over Protection for the 900 Vario Series, Gold Medal
Demopark, Germany
Fendt 500 Vario Series, New Machinery Introduction Award
FMTA Farm Machinery Show, Ireland
Fendt 500 Vario, Most Innovative Tractor of the Year 2012-2013
AGROSALON Nitra, Slovakia
Fendt Variotronic operating concept, Award
International Agricultural Trade Fair, Lithuania
Fendt 700 Vario, German Design Award
German Design Awards
Challenger RoGator 600, Top Award for Agricultural Best Practices Area
SIMA, Paris
Challenger, Milestone Award 2013 in Recognition of Innovative Machinery
DLV Germany
Massey Ferguson MF1839 & MF7624
Farm Machinery Magazine Annual TOP 50
Gleaner Super Series Combine, 2013 Product of the Year
RoGator RG700, 2013 New Product of the Year
AgriMarketing Magazine
24 AGCO 2013 ANNUAL REPORT
25
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Years Ended December 31
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Engineering expenses
Restructuring and other infrequent income
Impairment charge
Amortization of intangibles
Income from operations
Interest expense, net
Other expense, net
Income before income taxes and equity in net earnings of affiliates
Income tax provision
Income before equity in net earnings of affiliates
Equity in net earnings of affiliates
Net income
Net loss (income) attributable to noncontrolling interests
Net income attributable to AGCO Corporation and subsidiaries
Net income per common share attributable to AGCO Corporation
and subsidiaries:
Basic
Diluted
Cash dividends declared and paid per common share
Weighted average number of common and common equivalent
shares outstanding:
Basic
Diluted
2013
2012
2011
$ 10,786.9
$
9,962.2
$
8,773.2
8,396.3
2,390.6
1,088.7
353.4
7,839.0
2,123.2
1,041.2
317.1
6,997.1
1,776.1
869.3
275.6
—
—
47.8
900.7
58.0
40.1
802.6
258.5
544.1
48.2
592.3
4.9
597.2
6.14
6.01
0.40
97.3
99.4
$
$
$
$
$
$
$
$
—
22.4
49.3
693.2
57.6
34.8
600.8
137.9
462.9
53.5
516.4
5.7
522.1
5.38
5.30
—
97.1
98.6
$
$
$
$
(0.7)
—
21.6
610.3
30.2
19.1
561.0
24.6
536.4
48.9
585.3
(2.0)
583.3
6.10
5.95
—
95.6
98.1
The Consolidated Statements of Operations should be read in conjunction with the Company’s Management’s Discussion and Analysis of
Financial Condition and Results of Operations and the Company’s audited Consolidated Financial Statements and the accompanying
Notes to Consolidated Financial Statements, which are included in the Company’s Annual Report on Form 10-K.
SELECTED FINANCIAL INFORMATION
(in millions, except per share amounts and employees)
Years Ended December 31
2013
2012
2011
2010
2009
Operating Data:
Net sales
Gross profit
Income from operations
Net income
Net loss (income) attributable to noncontrolling interests
Net income attributable to AGCO Corporation and subsidiaries
Net income per common share — diluted
Cash dividends declared and paid per common share
Weighted average shares outstanding — diluted
Balance Sheet Data:
Cash and cash equivalents
Total assets
$ 10,786.9
$ 9,962.2
$
8,773.2
$ 6,896.6
$ 6,516.4
2,390.6
2,123.2
1,776.1
1,258.7
1,071.9
900.7
592.3
4.9
597.2
6.01
0.40
99.4
$
$
$
693.2
516.4
5.7
522.1
5.30
—
98.6
$
$
$
$
$
$
610.3
585.3
(2.0)
583.3
5.95
—
98.1
$
$
$
324.2
220.2
0.3
220.5
2.29
—
96.4
$
$
$
218.7
135.4
0.3
135.7
1.44
—
94.1
$ 1,047.2
$
781.3
$
724.4
$
719.9
$
651.4
8,438.8
7,721.8
7,257.2
5,436.9
4,998.9
Total long-term debt, excluding current portion
938.5
1,035.6
1,409.7
443.0
454.0
Stockholders’ equity
Other Data:
Number of employees
4,044.8
3,481.5
3,031.2
2,659.2
2,394.4
22,111
20,320
19,294
14,740
14,456
(1) The Company makes reference to adjusted earnings per share, as reconciled below:
2013
2012
2011
2010
2009
Net income per common share — diluted
$
6.01
$
5.30
$
5.95
$
2.29
$
1.44
Tax adjustments (3)
Impairment charge (2)(4)
Restructuring and other infrequent expenses (2)
GSI acquisition(2)(5)
—
—
—
—
(0.27)
0.22
—
—
—
—
—
(1.47)
—
—
0.03
—
—
—
0.11
—
Net income per common share — adjusted
$
6.01
$
5.25
$
4.48
$
2.32
$
1.55
The following is a reconciliation of free cash flow to net cash provided by operating activities for the year ended December 31, 2013 (in millions):
2013
Net cash provided by operating activities
$
797.0
Less:
Capital expenditures
Free cash flow
(391.8)
$
405.2
(2) After tax.
(3) During the fourth quarter of 2012, the Company recorded a non-cash tax gain associated with the recognition of certain U.S. deferred tax assets from the reversal
of its U.S. deferred tax valuation allowance and the recognition of certain U.S. research and development tax credits.
(4) During the fourth quarter of 2012, the Company recorded an impairment charge of approximately $22.4 million with respect to goodwill and certain other identifiable
intangible assets associated with the Company’s Chinese harvesting business.
(5) During 2011, the Company recorded a tax benefit of approximately $149.3 million and acquisition expenses of approximately $5.8 million associated with the
GSI acquisition.
The above notes are more fully described in the Company’s audited Consolidated Financial Statements and Notes to its Consolidated Financial Statements which
are included in the Company’s annual report on Form 10-K.
26 AGCO 2013 ANNUAL REPORT
27
CONSOLIDATED BALANCE SHEETS
(in millions, except share amounts)
December 31
ASSETS
Current Assets:
Cash and cash equivalents
Accounts and notes receivable, net
Inventories, net
Deferred tax assets
Other current assets
Total current assets
Property, plant and equipment, net
Investment in affiliates
Deferred tax assets
Other assets
Intangible assets, net
Goodwill
Total assets
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt
Convertible senior subordinated notes
Accounts payable
Accrued expenses
Other current liabilities
Total current liabilities
Long-term debt, less current portion
Pensions and postretirement health care benefits
Deferred tax liabilities
Other noncurrent liabilities
Total liabilities
Commitments and contingencies
Temporary equity
Stockholders’ Equity:
AGCO Corporation stockholders’ equity:
Preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding in
2013 and 2012
Common stock; $0.01 par value, 150,000,000 shares authorized, 97,362,466 and 96,815,998
shares issued and outstanding at December 31, 2013 and 2012, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total AGCO Corporation stockholders’ equity
Noncontrolling interests
Total stockholders’ equity
2013
2012
$
1,047.2
$
940.6
2,016.1
241.2
272.0
4,517.1
1,602.3
416.1
24.4
134.6
565.6
781.3
924.6
1,703.1
243.5
302.2
3,954.7
1,406.1
390.3
40.0
131.2
607.1
1,178.7
1,192.4
$
8,438.8
$
7,721.8
$
110.5
201.2
960.3
1,389.2
150.8
2,812.0
938.5
246.4
251.2
145.9
$
59.1
192.1
888.3
1,226.5
98.8
2,464.8
1,035.6
331.6
242.7
149.1
4,394.0
4,223.8
—
—
1.0
1,117.9
3,402.0
(510.7)
4,010.2
34.6
4,044.8
16.5
—
1.0
1,082.9
2,843.7
(479.4)
3,448.2
33.3
3,481.5
Total liabilities, temporary equity and stockholders’ equity
$
8,438.8
$
7,721.8
The Consolidated Balance Sheets should be read in conjunction with the Company’s Management’s Discussion and Analysis of Financial Condition and
Results of Operations and the Company’s audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements,
which are included in the Company’s Annual Report on Form 10-K.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Years Ended December 31
Cash flows from operating activities:
2013
2012
2011
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
$
592.3
$
516.4
$
585.3
Depreciation
Deferred debt issuance cost amortization
Impairment charge
Amortization of intangibles
Amortization of debt discount
Stock compensation
Equity in net earnings of affiliates, net of cash received
Deferred income tax provision (benefit)
Other
Changes in operating assets and liabilities, net of effects from purchase of businesses:
Accounts and notes receivable, net
Inventories, net
Other current and noncurrent assets
Accounts payable
Accrued expenses
Other current and noncurrent liabilities
Total adjustments
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of businesses, net of cash acquired
Investments in consolidated affiliates, net of cash acquired
(Sale of) investments in unconsolidated affiliates, net
Restricted cash and other
Net cash used in investing activities
Cash flows from financing activities:
Conversion of convertible senior subordinated notes
Proceeds from debt obligations
Repayments of debt obligations
Purchases and retirement of common stock
Proceeds from issuance of common stock
Payment of minimum tax withholdings on stock compensation
Excess tax benefit related to stock compensation
Payment of debt issuance costs
(Distribution to) investments by noncontrolling interests, net
Payment of dividends to stockholders
Net cash (used in) provided by financing activities
Effects of exchange rate changes on cash and cash equivalents
Increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
211.6
3.5
—
47.8
9.2
34.6
(19.0)
21.7
0.3
(36.2)
(356.9)
7.0
54.7
123.4
103.0
204.7
797.0
(391.8)
2.6
(9.5)
—
(10.0)
—
(408.7)
180.6
3.5
22.4
49.3
8.7
36.8
(25.7)
(36.4)
0.6
40.6
(160.9)
(71.8)
(61.7)
154.5
9.5
150.0
666.4
(340.5)
0.9
(2.9)
(20.1)
(15.8)
3.7
(374.7)
—
1,135.9
(1,194.0)
(1.0)
—
(17.0)
11.4
(0.1)
(3.1)
(38.9)
(106.8)
(15.6)
265.9
781.3
$ 1,047.2
—
926.3
(1,148.8)
(17.6)
—
(0.3)
—
(0.2)
(1.0)
—
(241.6)
6.8
56.9
724.4
781.3
$
151.9
2.9
—
21.6
8.2
24.4
(19.0)
(127.6)
(1.3)
5.4
(221.0)
(16.5)
162.3
183.5
(34.2)
140.6
725.9
(300.4)
1.5
(1,018.0)
(34.8)
(8.3)
(3.7)
(1,363.7)
(161.0)
1,676.9
(826.4)
—
0.3
(2.5)
—
(14.8)
(1.5)
—
671.0
(28.7)
4.5
719.9
724.4
$
The Consolidated Statements of Cash Flows should be read in conjunction with the Company’s Management’s Discussion and Analysis of Financial Condition and
Results of Operations and the Company’s audited Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements, which
are included in the Company’s Annual Report on Form 10-K.
28 AGCO 2013 ANNUAL REPORT
29
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in millions, except share amounts)
Common Stock
Accumulated Other Comprehensive Loss
Balance, December 31, 2010
Net income
Issuance of restricted stock
Issuance of performance award stock
Stock options and SSARs exercised
Stock compensation
Conversion of 1¾% convertible senior subordinated notes
Investments by noncontrolling interests
Distribution to noncontrolling interest
Change in fair value of noncontrolling interest
Defined benefit pension plans, net of taxes:
Prior service cost arising during year
Net actuarial loss arising during year
Amortization of prior service cost included in net periodic pension cost
Amortization of net actuarial losses included in net periodic pension cost
Deferred gains and losses on derivatives, net
Deferred gains and losses on derivatives held by affiliates, net
Change in cumulative translation adjustment
Balance, December 31, 2011
Net income (loss)
Issuance of restricted stock
Stock options and SSARs exercised
Stock compensation
Investments by redeemable noncontrolling interest
Distribution to noncontrolling interest
Changes in noncontrolling interests
Purchases and retirement of common stock
Defined benefit pension plans, net of taxes:
Prior service cost arising during year
Net actuarial loss arising during year
Amortization of prior service cost included in net periodic pension cost
Amortization of net actuarial losses included in net periodic pension cost
Deferred gains and losses on derivatives, net
Reclassification to temporary equity- Equity component of convertible senior subordinated notes
Change in cumulative translation adjustment
Balance, December 31, 2012
Net income (loss)
Payment of dividends to shareholders
Issuance of restricted stock
Issuance of performance award stock
SSARs exercised
Stock compensation
Excess tax benefit of stock awards
Conversion of 1¼% convertible senior subordinated notes
Distribution to noncontrolling interest
Changes in noncontrolling interest
Purchases and retirement of common stock
Defined benefit pension plans, net of taxes:
Net actuarial gain arising during year
Amortization of prior service cost included in net periodic pension cost
Amortization of net actuarial losses included in net periodic pension cost
Deferred gains and losses on derivatives, net
Reclassification from temporary equity- Equity component of convertible senior subordinated notes
Change in cumulative translation adjustment
Balance, December 31, 2013
30 AGCO 2013 ANNUAL REPORT
Shares
Amount
93,143,542. $
—.
12,034.
51,590.
60,992.
—.
3,926,574.
—.
—.
—.
—.
—.
—.
—.
—.
—.
—.
97,194,732.
—.
13,986.
16,287.
—.
—.
—.
—.
(409,007)
—.
—.
—.
—.
—.
—.
—.
96,815,998.
—
—
12,059
491,692
61,941
—
—
286
—
—
(19,510)
—
—
—
—
—
—
97,362,466. $
0.9
—
—
—
—
—
0.1
—
—
—
—
—
—
—
—
—
—
1.0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1.0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1.0
Additional
Paid-in Capital
$ 1,051.3
—
0.7
(1.5)
(0.7)
23.7
(0.1)
—
—
(0.2)
—
—
—
—
—
—
—
1,073.2
—
1.0
(0.3)
35.8
—
—
—
(17.6)
—
—
—
—
—
(9.2)
—
1,082.9
—
—
0.6
(14.7)
(2.2)
34.0
11.4
—
—
(2.3)
(1.0)
—
—
—
—
9.2
—
$ 1,117.9
Retained
Earnings
Defined Benefit
Pension Plans
Cumulative
Translation
Adjustment
Deferred
(Losses)
Gains on
Derivatives
Accumulated
Other
Comprehensive
Loss
Noncontrolling
Interests
Total
Stockholders’
Equity
$
$ 1,738.3
583.3
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,321.6
522.1
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,843.7
597.2
(38.9)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
$ 3,402.0
$
(179.1)
—
—
—
—
—
—
—
—
—
(5.0)
(61.8)
0.1
5.6
—
—
—
(240.2)
—
—
—
—
—
—
—
—
(2.5)
(28.2)
0.4
7.6
—
—
—
(262.9)
—
—
—
—
—
—
—
—
—
—
—
45.2
0.6
10.7
—
—
—
(206.4)
$
$
48.4
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(204.5)
(156.1)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(61.1)
(217.2)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(86.9)
(304.1)
$
$
(1.4)
—
—
—
—
—
—
—
—
—
$ (132.1)
—
—
—
—
—
—
—
—
—
$
0.8
2.0
—
—
—
—
—
34.6
(1.5)
0.2
2,659.2
585.3
0.7
(1.5)
(0.7)
23.7
—
34.6
(1.5)
—
—
(5.0)
—
—
(61.8)
—
—
0.1
—
—
5.6
—
—
(5.4)
(5.4)
—
2.5
2.5
(0.1)
(204.5)
—
FORMAT LEFT THE SAME AS PRIOR YEAR
(4.3)
36.0
(400.6)
—
3.0
—
FOR COLOR APPROVAL ONLY
—
—
—
—
—
—
—
—
—
—
—
—
(1.7)
—
—
(4.0)
—
—
—
—
—
(5.0)
(61.8)
0.1
5.6
(5.4)
2.5
(204.6)
3,031.2
525.1
1.0
(0.3)
35.8
—
(1.7)
(4.0)
(17.6)
—
—
—
—
5.0
—
—
0.7
—
—
—
—
—
—
—
—
—
—
—
(2.5)
(28.2)
0.4
7.6
5.0
—
(61.1)
(479.4)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(0.9)
—
—
(0.2)
45.2
0.6
10.7
(0.9)
—
(86.9)
$ (510.7)
$
$
—
—
—
—
—
—
—
33.3
4.4
—
—
—
—
—
—
—
(3.1)
—
—
—
—
—
—
—
—
34.6
$
(2.5)
(28.2)
0.4
7.6
5.0
(9.2)
(61.1)
3,481.5
601.6
(38.9)
0.6
(14.7)
(2.2)
34.0
11.4
—
(3.1)
(2.3)
(1.0)
45.2
0.6
10.7
(0.9)
9.2
(86.9)
4,044.8
Temporary
Equity
$
—
—
(8.7)
17.6
9.2
(1.6)
16.5
(9.3)
2.3
(9.2)
(0.3)
—
$
31
SHAREHOLDER INFORMATION
CORPORATE HEADQUARTERS
4205 River Green Parkway
Duluth, Georgia 30096 US
770-813-9200
TRANSFER AGENT & REGISTRAR
Computershare Trust Company, N.A.
211 Quality Circle, Suite 210
College Station, Texas 77845
1-800-962-4284
STOCK EXCHANGE
AGCO Corporation common stock (trading
symbol is “AGCO”) is traded on the New York
Stock Exchange.
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
KPMG LLP
Atlanta, Georgia US
FORM 10-K
The Form 10-K Annual Report filed with the Securities and Exchange Commission is
available in the “Investors” Section of our corporate website (www.agcocorp.com),
under the heading “SEC Filings,” or upon request from the Investor Relations
Department at corporate headquarters.
ANNUAL MEETING
The annual meeting of the Company’s stockholders will be held at 9:00 a.m. ET
on April 24, 2014 at the offices of AGCO Corporation, 4205 River Green Parkway,
Duluth, Georgia 30096 US.
Follow us on Twitter @agcocorp.
© 2014 AGCO Corporation
All rights reserved. Incorporated in Delaware. An Equal Opportunity Employer.
AGCO®, Fendt®, GSI®, Massey Ferguson®, Valtra® and their respective logos as well as corporate and product identity used herein are trademarks
of AGCO or its subsidiaries and may not be used without permission. Challenger® is a registered trademark of Caterpillar, Inc.
and may not be used without permission.
COMPARISON OF CUMULATIVE TOTAL RETURN
US$
350
300
250
200
150
100
50
0
2008
AGCO Corporation
Custom Peer Group
S&P Midcap 400 Index
2009
2010
2011
2012
2013
PERFORMANCE GRAPH
The graph shown (above) is a line graph presentation of the Company’s cumulative stockholder returns on an indexed basis
as compared to the S&P Mid-Cap 400 Index and a self-constructed peer group of the companies listed in footnote 1 to the
performance graph (“Peer Group”). Returns for the Company in the graph are not necessarily indicative of future performance.
Assumes $100 invested on January 1, 2009. Assumes dividends reinvested. Year ending December 31, 2013.
(1) Based on information for a self-constructed peer group of companies which includes the following: Caterpillar Inc, CNH Global NV, CNH Industrial NV,
Cummins Inc., Deere & Company, Eaton Corporation Plc., Ingersoll-Rand Plc., Navistar International Corporation, PACCAR Inc., Parker-Hannifin Corporation
and Terex Corporation.
32 AGCO 2013 ANNUAL REPORT
The Company makes reference to adjusted operating margin on page 5 of this report, as reconciled below (in millions):
Income from Operations
2013
2012
2011
2010
2009
As adjusted
$900.7
$715.6
$615.4
$328.6
$231.9
Restructuring and other infrequent items(1)
Impairment charge(2)
GSI acquisition(3)
As reported
—
—
—
—
22.4
—
(0.7)
—
5.8
4.4
—
—
13.2
—
—
$900.7
$693.2
$610.3
$324.2
$218.7
(1) Restructuring and other infrequent items related to severance and other related costs associated with certain rationalizations of operations.
(2) The Company recorded an impairment charge related to its Chinese harvesting business associated with goodwill and other intangible assets.
(3) The Company recorded acquisition-related expenses of $5.8 million associated with the GSI acquisition.
4205 River Green Parkway
Duluth, GA 30096
Phone 1-770-813-9200
www.AGCOcorp.com