2016 ANNUAL REPORT
ENGiNEERiNG
FOOd SeCurity
ENGiNEERiNG
FOOd SeCurity
the wOrld’S Future dependS On FOOd SeCurity.
ENSURiNG wE hAvE SUFFiCiENT FOOD TO mEET ThE DEmAND OF
A GROwiNG POPULATiON AND iTS ChANGiNG DiET whiLE ADDRESSiNG
RESOURCE AND ENviRONmENTAL LimiTATiONS iS A GLObAL ChALLENGE.
AGCO hAS ThE SOLUTiONS TO hELP mEET ThiS ChALLENGE.
Our solutions to engineer food security include supporting
sustainable productivity through technology and innovation to
grow more food with fewer resources and reduce post-harvest losses
all along the supply chain. by leveraging our expertise, our resources,
and our worldwide brand network, we are developing solutions
that will help farmers feed the world’s population –
now and in the future.
ContentS
agco at a glance
02Page
Page
04
global Presence
Page
06
a Message
from Martin
Richenhagen
Page
10
Engineering
Food security
12Page
agco’s Food
security solutions
02 AGCo at a Glance
04 Global presence
06 A Message from
Martin Richenhagen
10 our Commitment to
22 Consolidated Balance Sheets
23 Consolidated Statements
of Cash Flows
24 Consolidated Statements
of Stockholders’ equity
engineering Food Security
26 Forward-looking Statements
12 AGCo’s Food Security Solutions
27 Shareholder information
18 officers and directors
28 Global Recognition
20 Selected Financial data
21 Consolidated Statements
of operations
Financial
HigHligHts
net SAleS
$7.4Bn
FRee CASh Flow*
$169M
AdjuSted net inCoMe*
$201.6M
AdjuSted epS*
$2.47
*please see reconciliation of
non-GAAp measures on page 20.
2016 AnnuAl RepoRt AGCO 01
AGCo
AT A GLANCE
AGCo hAS A lonG-StAndinG hiStoRy oF
deliveRinG leAdinG AGRiCultuRAl innovAtionS
And SolutionS ACRoSS the Supply ChAin
lEaDing BRanDs
innovative, powerful and
recognizable brands like
Challenger®, Fendt®, GSi®,
Massey Ferguson®, and valtra®.
AGCo’s broad portfolio of
brands empowers farmers and
helps engineer food security
sustainably and profitably.
Challenger delivers a comprehensive
range of high-performance machines
built to maximize returns.
From tractors to harvesters to balers,
when it comes to Fendt, it’s always
high quality; it’s always high-tech.
GSi offers world-class grain storage,
material handling, conditioning, and
structures, as well as seed-processing
solutions and a full line of swine and
poultry production equipment.
From straightforward performance to
high-specification machines, Massey
Ferguson is a force in global agriculture.
Valtra equipment is specifically designed
for farmers and contractors who value
close customer relationships, as well
as solutions that handle demanding
working conditions.
02 AGCO 2016 AnnuAl RepoRt
6
5
4
SAleS
By pRoduCt
SeGMent
3
2
1. tractors
2. Replacement parts
3. Grain handling, Seed-
processing, and protein
production equipment
1
4. Combines
5. Application equipment
6. other Machinery
57%
16%
12%
4%
4%
7%
FaRMing
EquiPMEnt
PREcision
FaRMing
3,050
DEalERs
Global leadership in the design,
manufacture and distribution
of a full line of tractors,
combines, hay and forage
equipment, sprayers, seeding
and tillage implements, and
replacement parts.
high-tech agriculture solutions
to help farmers reduce the use
of inputs and increase yields
by optimizing their fleets, fields,
and farms with unparalleled
flexibility using our Fuse®
products and services.
through AGCo’s global
network of 3,050 dealers and
distributors in Asia/Pacific,
europe/Africa/Middle east,
north America, and South
America, our end-customers
receive high quality aftersales
service and support.
gRain HanDling,
sEED-PRocEssing,
anD PRotEin
PRoDuction solutions
leading grain handling,
animal protein production
technologies, and seed-
processing system solutions
to boost food security by
maximizing production and
minimizing post-harvest losses.
EMERging
MaRkEts
gloBal
nEtwoRk
Significant long-term
investments in emerging
markets like Africa, China,
and Brazil, as well as
eastern and Central europe.
worldwide network of state-
of-the-art manufacturing,
assembly, distribution, sales
and administration facilities
supporting production of grains,
oilseeds, forages, cotton, dairy,
livestock, poultry, sugarcane,
coffee, barley, rice, palm oil,
and other specialty crops.
2016 AnnuAl RepoRt AGCO 03
GloBAl
PRESENCE
Global Corporate
headquarters
Regional Corporate
headquarters
l Manufacturing/Assembly
n Manufacturing/Assembly
(joint venture)
s parts distribution
Future Farm and
Global learning Centre
04 AGCO 2016 AnnuAl RepoRt
noRth AMeRiCA
South AMeRiCA
1,390
deAleRS
290
deAleRS
24%
ReGionAl
net SAleS
12%
ReGionAl
net SAleS
AGCo hAS A lonG-StAndinG ReputAtion AS A GloBAl
leAdeR in innovAtive thinkinG And pRACtiCAl, leAdinG-edGe
AGRiCultuRAl teChnoloGieS, And ouR Multi-BRAnd StRAteGy
MAkeS uS well poSitioned to leAd the wAy in enGineeRinG
Food SeCuRity in All pARtS oF the woRld.
euRope/AFRiCA/Middle eASt
ASiA/pACiFiC
930
deAleRS
440
deAleRS
57%
ReGionAl
net SAleS
7%
ReGionAl
net SAleS
2016 AnnuAl RepoRt AGCO 05
2016 AnnuAl RepoRt AGCO 05
a MEssagE FRoM MaRtin RicHEnHagEn
ChAiRMAn, pReSident And ChieF eXeCutive oFFiCeR
FoCuS
ON GROWTH
06 AGCO 2016 AnnuAl RepoRt
Fellow shareholders, AGCo is dedicated
to generating long-term shareholder
value. over the past three years, market
conditions in our industry have weakened
significantly providing a strong test of our
ability to operate successfully throughout
the business cycle.
in a year of challenging farm fundamentals
and weak industry demand, i am pleased
to tell you that 2016 was a year of
significant progress on many fronts
for AGCO. We met our financial goals,
launched important new products,
completed a strategic acquisition,
expanded our Fuse technology capabilities,
and continued to improve our production
facilities. As you will read in the coming
pages, our success is achieved through
our operational excellence, project-
execution capabilities, and the application
of new technologies, supported by strong
financial flexibility, investment discipline,
and a world-class workforce. All of this
lets AGCo do its part to meet the global
challenge of food security, and support
farmers and our global partners in
profitable, sustainable food production,
both now and in the future.
2016 FinAnCiAl ReCAp
our industry and AGCo (the “Company”) experienced soft market
demand last year. A record grain harvest in the u.S. combined
with healthy crop production across europe and Brazil resulted
in increased grain inventories and lower soft commodity prices.
deteriorating farm economics negatively impacted farmer
sentiment, and we experienced softer industry equipment
demand in all major markets. we responded by cutting
production and closely managing our Company and dealer
inventories. AGCO’s 2016 results reflect the adverse impact
of operating in the lower end of the agricultural equipment
cycle, particularly in north and South America.
AGCO’s 2016 net sales were $7.4 billion, relatively flat compared
to 2015 levels. Adjusted net income for 2016 was $2.47 per
share, excluding restructuring expenses of $0.12 per share and
a non-cash deferred income tax adjustment of $0.39 per share.
We generated approximately $169 million in free cash flow
after funding significant investments in new products and
other long-term profitability improvement initiatives. Our free
cash flow was largely used to support share repurchases
of approximately $213 million in 2016.
StRAteGy updAte
At AGCo, we are focused on consistent execution against
strategic principles that are driven by our vision and mission.
our clear vision at AGCo is to provide high-tech solutions for
professional farmers feeding the world. we accomplish this by
supplying agricultural equipment that increases the efficiency
and productivity of our customers. AGCo’s mission, with the
shareholder in mind, is to achieve profitable growth through
superior customer service, innovation, quality, and commitment.
For more than two decades, AGCo has been working to
provide the right products and the right technology to compete
effectively in our dynamic marketplace. we will continue
to invest in new products, new technology, and improved
distribution in order to expand our margins and produce
higher returns on our invested capital. during the downturn
we are working diligently on our cost reduction strategies
targeted at purchasing actions, factory productivity,
and new product development.
please see reconciliation of non-GAAp measures on page 20.
2016 AnnuAl RepoRt AGCO 07
a MEssagE FRoM MaRtin RicHEnHagEn
ChAiRMAn, pReSident And ChieF eXeCutive oFFiCeR
Sales growth is another important element of our margin
improvement roadmap. AGCo is focused on growing our
business in the markets we currently serve and expanding into
the developing areas of eastern and Central europe, China, and
Africa. A key sales-growth initiative is our investment in product
development. A great example of this is the Fendt 1000 tractor
that launched during 2016. it delivers over 500 horsepower
on an impressive conventional chassis, making it very efficient
and more flexible to perform a wider variety of operations.
the two key components of our Fuse program are
Fuse technologies and Fuse Connected Services. Fuse
technologies is the portfolio of technology tools that are the
foundation of the optimized farm, and we have solutions that
address all elements of improving farm productivity and reducing
farm waste. Fuse Connected Services builds on this by using
data-transfer technologies and analytic insights combined with
dealer capabilities to help customers optimize their fleet and
farm, and maximize up-time throughout the year.
high horsepower tractors for the professional producer
segment have always been a major strength and focus for
AGCo. the launch of the Fendt 1000 marks an important
beginning of our premium tractor platform consolidation.
this new tractor range also introduced our Fendt technology
for the north American market under the Challenger brand.
The Challenger version of this tractor was designed specifically
to meet north American row width standards, providing us with
a new opportunity to increase our sales of premium tractors
in north America.
this past year was the biggest yet for our Fuse initiative. Along
with new product introductions, we announced development
partnerships with agricultural technology companies Aglytix
and Farmobile to deliver farm-optimization services to AGCo
customers. these partnerships will enable growers to reduce
waste, increase yield, and improve profitability through
actionable insights for their fleet, in their fields and across their
farms. Fuse also continued to receive awards as the recipient
of two 2016 technology innovator Awards by Corporate Vision
magazine, including “Most innovative Agricultural platform.”
our research and development also includes investments
in Fuse, AGCo’s approach to precision agriculture that optimizes
the farm by providing improved access to farm data and better
connections to trusted service providers. these improvements
allow farmers to make more informed business decisions,
reduce input costs, and improve yields, and profitability.
Another important growth driver for AGCo is our GSi family of
products and services. in our grain handling business, we are
a global leader in storing, moving, and drying grains. we offer
world-class solutions for on-farm storage and commercial
applications, including river and rail terminals and sea ports.
the acquisition of Cimbria in September brought us the leading
position in the global seed-processing equipment market
and together, GSi and Cimbria combine to extend our
global leadership in grain handling.
while the low commodity prices have hurt demand for our
grain handling products in 2016, demand has increased for
our global animal protein businesses. For swine, poultry, and
egg producers, we provide housing, climate control, feeding,
and watering solutions. we are a global leader across these
categories, and our recent entrance into the commercial egg
market provides us significant growth opportunities. We are
bringing new, best-in-class technologies for improving animal
welfare, including being a leading provider of cage-free
systems for commercial egg producers in north America.
you can view our latest video with
Martin Richenhagen, Ceo, where he
discusses AGCo’s successful year:
www.AGCOcorp.com/ar2016video
08 AGCO 2016 AnnuAl RepoRt
CApitAl AlloCAtion
we intend to continue investing in our business to
improve efficiency and maintain the pace of our new
product introductions. over the last decade, we have built
a solid capital structure and keeping our investment grade
credit rating is a priority. AGCo will remain opportunistic
with regards to acquisitions in order to add new products
and expand our geographic reach.
our healthy balance sheet and strong cash generation
has enabled us to return cash to shareholders and these
distributions will remain an important component of our
long-term capital allocation plan. over the past three years,
we executed share repurchases of $1 billion which reduced
our share count by approximately 20 percent. our Board
of directors has approved a new $300 million repurchase
program which expires in december 2019 and is expected
to be funded with operating cash flow.
in summary, we are taking aggressive actions to align our
costs and working capital with the weaker market demand
that we are facing today. however, our long-term view remains
optimistic for our industry and for AGCo, and our strategy is
aimed at growing our business and improving the returns for
our shareholders as we continue to provide solutions that
will help engineer global food security.
the AGCo team – approximately 20,000 strong – is energized
and committed, and i am deeply appreciative of all their talent,
efforts, and determination. Collectively, we are grateful for
our customers, dealers, and partners who ultimately drive
our success. And finally, we are thankful to our shareholders
for your continued confidence across the business cycle.
we look forward to working with all of you for many
prosperous years ahead.
Sincerely,
MARTiN RiCHENHAGEN
ChAiRMAn, pReSident
And ChieF eXeCutive oFFiCeR
2016 AnnuAl RepoRt AGCO 09
ouR long-tERM viEw REMains
oPtiMistic FoR ouR inDustRy anD
FoR agco, anD ouR stRatEgy is
aiMED at gRowing ouR BusinEss
anD iMPRoving tHE REtuRns
FoR ouR sHaREHolDERs as wE
continuE to PRoviDE solutions
tHat will HElP EnginEER gloBal
FooD sEcuRity.”
ouR CoMMitMent to
ENGiNEERiNG FOOd
SECuRiTy
enSuRinG the woRld hAS enouGh to eAt iS
not An eASy tASk, But it iS A key dRiveR Behind ouR
BuSineSS – the BuSineSS oF SuppoRtinG Food pRoduCeRS
ARound the woRld. thRouGh ReSponSiBle MAnAGeMent
oF itS poRtFolio oF BRAndS, AGCo iS one oF the woRld’S
leAdinG AGRiCultuRAl induStRy inFluenCeRS
And iS ACtively involved in All StAGeS oF the
AGRiCultuRAl liFe CyCle.
AGCo is focused on delivering practical solutions to
increase agricultural production with mechanization
and boost productivity using precision farming
technology. we also encourage healthy animal
protein production with efficient and responsible
solutions and support the delivery of more food to
market by reducing post-harvest losses with better
harvesting and grain handling.
our global expertise and innovative technologies
are focused on meeting the challenges that farmers
face around the world. through our development
and innovation commitments, our goal is to
empower farmers to find solutions to those
challenges. that empowerment will help us
collectively engineer food security and ensure
the sustainability of our business, our industry,
and our planet.
As a global thought leader, AGCo supports the
united nations’ Sustainable development Goals
and plays a critical role in notably addressing
Goal 2* to end hunger, achieve food security, improve
nutrition, and promote sustainable agriculture;
and Goal 12* to ensure sustainable consumption
and production patterns such as reducing
post-harvest losses.
united nAtionS SuStAinABle developMent GoAlS*
* sustainabledevelopment.un.org/sdgs
10 AGCO 2016 AnnuAl RepoRt
10 AGCO 2016 AnnuAl RepoRt
S
d
E
V
E
L
MENT C O M M iT M ENT
O
P
i
N
N
O
V
ATiON CO M M i T
M ENTS
Development and growth are integral to
ensuring global food security while creating
value for all our stakeholders. at agco,
we continue to strengthen our business
through acquisition, collaboration, and
operational efficiency, and our multi-brand
strategy helps us advance food security
around the world.
WE ARE COMMiTTEd:
• to proactively grow our product offering and
geographic reach to address food security
and help reduce post-harvest losses
• to meet the growth in changing diets
• to develop our relationships with strategic partners
• to grow and develop our multi-brand strategy
around the world
• To operate efficiently, drive ROI and create value
for all stakeholders
Research and development are at the
core of agco’s innovation engine and
drive our leadership in advancing
agricultural technology.
our ongoing strategic investments in
R&D bring upgrades across all our brands,
maintain a high rate of new product
launches, and deliver innovative solutions
to drive growth and maximize the value
of our portfolio of world-leading brands.
WE ARE COMMiTTEd:
• to invest in R&d to drive leadership in advancing
agricultural technologies
• to launch new and innovative products and
upgrades across all brands
• to help farmers optimize their farms with
Fuse technologies
• to invest in state-of-the-art manufacturing
• to promote thought leadership in the emerging
biomass sector
2016 AnnuAl RepoRt AGCO 11
2016 AnnuAl RepoRt AGCO 11
AGCo’S
FOOd SECuRiTy
SOLuTiONS
COMMiTMENT
TO REduCiNG
POST-HARVEST
LOSSES
agco’s commitment to post-harvest
loss reduction is at the core of
investments in its gsi business of
cutting-edge, scalable technologies
for grain and perishables storage.
the 2016 acquisition of Cimbria, a leading
manufacturer of products and solutions for
the processing, handling, and storage of seed
and grain, has added global leadership in the
seed-handling industry as well as new grain
markets to the AGCo portfolio. this supports
better inputs for farmers and helps reduce
post-harvest losses.
with its strong GSi family of brands, which
include grain handling and seed-processing,
as well as poultry, egg, and swine production,
AGCo is well positioned to meet future shifts
in global dietary demands.
12 AGCO 2016 AnnuAl RepoRt
RESPONSibLy MEETiNG THE CHALLENGE
OF PROTEiN dEMANd
Global demand for high quality protein is increasing due to an
expanding middle class and improving animal welfare is becoming
more critical. through GSi’s animal protein production brands,
we are meeting these challenges by providing the most efficient
animal production systems. As a leader in commercial egg
systems, GSi offers one of the most comprehensive global
portfolios for commercial egg production. in europe and north
America, GSi is a leader in enriched and cage-free systems and
will continue to lead the industry with its launch of next generation
aviary solutions as well as through its continuous commitment
to product innovation for developing leading products for the
commercial egg production market worldwide.
PROMOTiNG iNNOVATiVE
SOLAR-POWEREd COLd
STORAGE SOLuTiONS
Food storage systems can be a critical way of boosting farm
productivity and food security in Africa, where significant losses
occur annually due to inadequate post-harvest infrastructure.
A promising innovation is a village-level, solar-powered cold
storage for perishables. this will allow smallholder farmers to
reduce post-harvest losses and improve their market access
by extending the shelf life of perishables until they can be sold
at a fair price.
2016 AnnuAl RepoRt AGCO 13
AnnuAl RepoRt 2016 AGCO 13
AGCo’S
FOOd SECuRiTy
SOLuTiONS
Continued
iNVESTiNG iN
NEW PROduCT
LAuNCHES ANd
uPGRAdES
we are committed to delivering
innovative, practical solutions that
empower farmers, shape the long-
term sustainability of agriculture,
and strengthen food security around
the world. our global series tractor
platform, for example, represents
the heart of agco and what we do –
provide machinery to feed the world.
the Global Series is an investment in the
future that addresses tractor production
and development in the all-important
low to medium horsepower sector. this
platform expresses our commitment to
brand-new designs, to delivering sustainable
manufacturing in all parts of the world, and
to transforming agriculture through the
production of machines with appropriate
technology to support a wide range of
farming sectors.
14 AGCO 2016 AnnuAl RepoRt
CONTiNuiNG iNVESTMENT
iN FuSE TECHNOLOGiES
we are continuing our investment in our Fuse initiative,
developing precision farming solutions to drive productivity
and increase yields.
The past year marked the most significant yet for Fuse
technologies. new development partnerships will allow
AGCo to deliver farm optimization services to its customers
and give farmers actionable insights into their fleets, fields,
and farms to support waste reduction, yield increases, and
improved profitability.
iNVESTiNG iN STATE-OF-
THE-ART MANuFACTuRiNG
AGCo’s manufacturing facilities are quality-driven and state-of-
the-art, and we are constantly making investments to ensure
we stay efficient, innovative, and on the cutting edge.
in 2016, our tractor manufacturing facility in Beauvais, France
won the Factory of the year 2016 award from L’Usine Nouvelle,
France’s leading industrial magazine. Some 14,500 Massey
Ferguson tractors roll off the assembly lines each year at this
site. An implementation of lean manufacturing standards has
brought high levels of efficiency and agility that let us respond
quickly to changing market demands.
2016 AnnuAl RepoRt AGCO 15
AnnuAl RepoRt 2016 AGCO 15
AGCo’S
FOOd SECuRiTy
SOLuTiONS
Continued
increasing farm productivity and food security is at the
heart of agco’s africa strategy.
our 150-hectare Future Farm
in Zambia now features the full
line of Fuse technologies. its
facilities, which also include crop
demonstration plots and GSi grain
storage and protein production
units, provide training in agronomy
and modern agricultural practices
to farmers, equipment operators,
and service people. plans for a
second Future Farm in French-
speaking west Africa are underway.
AGCo’s partnership with the
international non-profit organization
Cultivating new Frontiers in
Agriculture is part of our vision
to transform African agriculture
through inclusive, sustainable
mechanization solutions. our
new Massey Ferguson Farm
Mechanization package, which
consists of a tractor and multiple
compatible implements, is aimed
at farmers taking their first steps
in mechanized agriculture.
our annual Africa Summit brings
together international leaders to
share innovative approaches to
further the development of the
agricultural sector on the continent.
dRiViNG
AGRiCuLTuRAL
MECHANizATiON
iN AFRiCA
16 AGCO 2016 AnnuAl RepoRt
LEAdiNG THE WAy iN THE EMERGiNG
biOMASS iNduSTRy
AGCo is involved with developing the emerging biomass
industry. we are working with academia and leading businesses
to perfect best practices, and developing the right equipment
to get crops off the field and to market as quickly and
efficiently as possible.
AGCO’S SOLuTiONS ARE dRiViNG
SHAREHOLdER RETuRNS
our global expertise and localized knowledge ensures we are
supporting sustainable agricultural development while driving
shareholder returns. Our focus remains on efficient operations,
global purchasing excellence, research and development,
and growth of our product offerings and geographic reach
of our family of brands.
2016 AnnuAl RepoRt AGCO 17
oFFiCeRS
ANd diRECTORS
SenioR MAnAGeMent
11 Martin H. Richenhagen
Chairman, president and
Chief Executive Officer
9 Roger N. batkin
vice president,
General Counsel
and Corporate Secretary
20 Andrew H. beck
Senior vice president,
Chief Financial Officer
15 Gary L. Collar
Senior vice president,
General Manager,
Asia/Pacific and Africa
*Not an Officer or Director.
18 AGCO 2016 AnnuAl RepoRt
12 Robert b. Crain
Senior vice president,
General Manager,
Americas
7 ulrich Stockheim*
Global head of Corporate
Communications and
Marketing
2 Helmut R. Endres
Senior vice president,
engineering
6 Eric P. Hansotia
Senior vice president,
Global Crop Cycle and
Fuse Connected
Services
14 Lucinda b. Smith
Senior vice president,
Global Business Services
13 Rob Smith
Senior vice president,
General Manager,
europe and Middle east
21 Hans-bernd Veltmaat
Senior vice president,
Chief Supply Chain Officer
17 Thomas F. Welke
Senior vice president,
Global Grain and
protein, GSi
BoARd oF diReCtoRS
11 Martin H. Richenhagen
Chairman, president and Chief
Executive Officer
AGCo
16 Roy V. Armes
Former executive Chairman,
president and Ceo
Cooper tire and
Rubber Company
19 Michael C. Arnold
Former president and Ceo
Ryerson inc.
3 P. George benson
professor of decision Sciences
and former president
College of Charleston
5 Wolfgang deml
Former president and
Chief Executive Officer
Baywa Corporation
4 Luiz Fernando Furlan
Former Minister of
development, industry
and Foreign trade of Brazil
18 George E. Minnich
Former Senior vice
president and CFo
itt Corporation
10 Gerald L. Shaheen
Former Group president
Caterpillar inc.
8 Mallika Srinivasan
Chairman and Ceo
tractors and Farm
equipment limited (tAFe)
1 Hendrikus Visser
Former Chairman
Royal huisman Shipyards n.v.
AGCo 2016 BoARd CoMMitteeS
Executive Committee
Martin H. Richenhagen, Chairman
P. george Benson
wolfgang Deml
george E. Minnich
gerald l. shaheen
Hendrikus visser
Audit Committee
george E. Minnich, Chairman
Michael c. arnold
P. george Benson
Hendrikus visser
Compensation Committee
gerald l. shaheen, Chairman
Roy v. armes
luiz Fernando Furlan
george E. Minnich
Finance Committee
Hendrikus visser, Chairman
george E. Minnich
gerald l. shaheen
2
3
4
5
9
11
13 17
1
12
8
16
7
19 20
21
6
10
14
15
18
Governance Committee
P. george Benson, Chairman
Michael c. arnold
wolfgang Deml
Mallika srinivasan (guest)
Hendrikus visser
Succession Planning Committee
wolfgang Deml, Chairman
Roy v. armes
luiz Fernando Furlan
Martin H. Richenhagen
gerald l. shaheen
Mallika srinivasan
2016 AnnuAl RepoRt AGCO 19
sElEctED Financial Data
years Ended december 31,
(in millions, except per share amounts)
Operating data:
net sales
Gross profit
income from operations
net income
net (income) loss 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
$ 7,410.5
1,515.5
288.4
160.2
(0.1)
160.1
1.96
0.52
81.7
2016
2015
2014
2013
2012
$ 7,467.3 $ 9,723.7
2,066.3
646.5
404.2
6.2
410.4
4.36
0.44
94.2
1,560.6
361.1
264.0
2.4
266.4
3.06
0.48
87.1
$
$
$
$
$
$
$ 10,786.9 $ 9,962.2
2,123.2
693.2
516.4
5.7
522.1
5.30
–
98.6
2,390.6
900.7
592.3
4.9
597.2 $
6.01 $
0.40 $
99.4
$
$
$
As of december 31
(in millions, except number of employees)
balance Sheet data:
Cash and cash equivalents
total assets(1)
total long-term debt, excluding current portion
Stockholders’ equity
Other data:
number of employees
2016
2015
2014
2013
2012
$
429.7
7,168.4
1,610.0
2,837.2
$
426.7
6,497.7
925.2
2,883.3
$
363.7
7,364.5
993.3
3,496.9
$ 1,047.2 $
8,390.2
932.9
4,044.8
781.3
7,693.3
1,028.7
3,481.5
19,795
19,588
20,828
22,111
20,320
(1) total assets have been retroactively adjusted for december 31, 2015 and all prior year periods related to the adoption of the change in the presentation of debt
issuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of a deferred charge (an asset). Refer to
note 1 of our Consolidated Financial Statements for further information.
(2) the Company makes reference to adjusted earnings per share, as reconciled below:
net income per common share – diluted
Restructuring expenses(3)(4)
tax adjustments(5)(6)
impairment charge(3)(7)
net income per common share – adjusted
2016
2015
2014
2013
2012
$
$
1.96
0.12
0.39
–
2.47
$
$
3.06
0.18
–
–
$
3.24
$
4.36 $
0.34
–
–
4.70
$
6.01 $
–
–
–
6.01 $
5.30
–
(0.27)
0.22
5.25
the following is a reconciliation to net cash provided by operating activities
to free cash flow for the year ended december 31, 2016 (in millions):
the following is a reconciliation of reported net income
to adjusted net income for the year ended december 31,
2016 (in millions):
net cash provided by operating activities
less:
Capital expenditures
Free cash flow
2016
$
369. 5
As reported
Restructuring expenses(3)(4)
(201.0) deferred income tax adjustment(5)
2016
Net income(3)
160.1
$
9.9
31.6
$
168.5
As adjusted
$
201.6
(3) After tax.
(4) the restructuring expenses recorded during 2016, 2015 and 2014 related
primarily to severance and other costs associated with the rationalization
of the Company’s operations in the united States, South America, europe
and China.
(5) during the second quarter of 2016, the Company recorded a non-cash
adjustment to increase the valuation allowance against its u.S. net deferred
income tax assets.
(6) 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.
20 AGCO 2016 AnnuAl RepoRt
(7) 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.
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.
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 expenses
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 (income) loss 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
2016
2015
2014
$ 7,410.5
5,895.0
1,515.5
867.9
296.1
11.9
51.2
288.4
52.1
31.4
204.9
92.2
112.7
47.5
160.2
(0.1)
$ 7,467.3 $
5,906.7
1,560.6
852.3
282.2
22.3
42.7
361.1
45.4
36.3
279.4
72.5
206.9
57.1
264.0
2.4
9,723.7
7,657.4
2,066.3
995.4
337.0
46.4
41.0
646.5
58.4
49.1
539.0
187.7
351.3
52.9
404.2
6.2
$
$
$
$
$
$
$
$
160.1
1.97
1.96
0.52
81.4
81.7
266.4
$
410.4
3.06 $
3.06 $
0.48 $
87.0
87.1
4.39
4.36
0.44
93.4
94.2
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.
2016 AnnuAl RepoRt AGCO 21
consoliDatED BalancE sHEEts
(in millions, except share amounts)
december 31,
ASSETS
Current Assets:
Cash and cash equivalents
Accounts and notes receivable, net
inventories, net
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
Senior term loan
Accounts payable
Accrued expenses
other current liabilities
total current liabilities
long-term debt, less current portion and debt issuance costs
pensions and postretirement health care benefits
deferred tax liabilities
other noncurrent liabilities
total liabilities
Commitments and contingencies
STOCKHOLdERS’ EQuiTy:
AGCo Corporation stockholders’ equity:
preferred stock; $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding
in 2016 and 2015
Common stock; $0.01 par value, 150,000,000 shares authorized, 79,465,393 and 83,814,809
shares issued and outstanding at december 31, 2016 and 2015, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
total AGCo Corporation stockholders’ equity
noncontrolling interests
total stockholders’ equity
total liabilities and stockholders’ equity
2016
2015
$
429.7
890.4
1,514.8
330.8
3,165.7
1,361.3
414.9
99.7
143.1
607.3
1,376.4
$
426.7
836.8
1,423.4
211.4
2,898.3
1,347.1
392.9
100.7
136.5
507.7
1,114.5
$ 7,168.4
$ 6,497.7
$
85.4
–
722.6
1,160.8
176.1
2,144.9
1,610.0
270.0
112.4
193.9
4,331.2
$
89.0
217.2
625.6
1,106.9
146.7
2,185.4
925.2
233.9
86.4
183.5
3,614.4
–
–
0.8
103.3
4,113.6
(1,441.6)
2,776.1
61.1
2,837.2
0.8
301.7
3,996.0
(1,460.2)
2,838.3
45.0
2,883.3
$ 7,168.4
$ 6,497.7
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.
22 AGCO 2016 AnnuAl RepoRt
consoliDatED statEMEnts oF casH Flows
(in millions)
years Ended december 31,
Cash flows from operating activities:
net income
Adjustments to reconcile net income to net cash provided by operating activities:
2016
2015
2014
$
160.2
$
264.0 $
404.2
depreciation
deferred debt issuance cost amortization
Amortization of intangibles
Stock compensation expense (credit)
proceeds from termination of hedging instrument
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
investment in consolidated affiliates, net of cash acquired
investments in unconsolidated affiliates
Restricted cash and other
net cash used in investing activities
Cash flows from financing activities:
proceeds from debt obligations
Repayment of debt obligations
purchases and retirement of common stock
Repurchase or conversion of convertible senior subordinated notes
payment of dividends to stockholders
payment of minimum tax withholdings on stock compensation
payment of debt issuance costs
excess tax benefit related to stock compensation
purchase of or distribution to noncontrolling interests
other
net cash provided by (used in) financing activities
effects of exchange rate changes on cash and cash equivalents
increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
223.4
1.0
51.2
18.1
7.3
(1.4)
2.1
1.3
(4.5)
(33.1)
(98.7)
62.8
47.0
(67.2)
209.3
369.5
(201.0)
2.4
(383.8)
(11.8)
(4.5)
0.4
(598.3)
3,117.9
(2,622.4)
(212.5)
–
(42.5)
(2.0)
(2.5)
–
0.4
–
236.4
(4.6)
3.0
426.7
429.7
$
217.4
2.0
42.7
12.2
–
(19.0)
(26.8)
(0.1)
3.8
117.6
(49.3)
37.3
(34.8)
(42.8)
260.2
524.2
(211.4)
1.5
(25.4)
–
(3.8)
(1.7)
(240.8)
1,951.9
(1,769.5)
(287.5)
–
(42.0)
(6.3)
(0.7)
0.7
–
–
(153.4)
(67.0)
63.0
363.7
239.4
2.7
41.0
(10.8)
–
(25.4)
3.6
2.5
(103.9)
111.4
29.1
(219.4)
(71.2)
35.2
34.2
438.4
(301.5)
2.8
(130.3)
–
(3.9)
–
(432.9)
1,689.4
(1,588.8)
(499.7)
(201.2)
(40.8)
(13.2)
(1.4)
–
(6.1)
(0.2)
(662.0)
(27.0)
(683.5)
1,047.2
$
426.7
$
363.7
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.
2016 AnnuAl RepoRt AGCO 23
consoliDatED statEMEnts oF stockHolDERs’ Equity
(in millions, except share amounts)
Common Stock
Accumulated other Comprehensive loss
balance, december 31, 2013
net income (loss)
payment of dividends to shareholders
issuance of restricted stock
issuance of stock awards
SSARs exercised
Stock compensation
Shortfall in tax benefit of stock awards
Conversion of 11/4% convertible senior subordinated notes
investment by noncontrolling interest
distribution to noncontrolling interest
Changes in noncontrolling interest
purchases and retirement of common stock
defined benefit pension plans, net of taxes:
net loss recognized due to settlement
net gain recognized due to curtailment
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
Change in cumulative translation adjustment
balance, december 31, 2014
net income (loss)
payment of dividends to shareholders
issuance of restricted stock
issuance of stock awards
SSARs exercised
Stock compensation
excess tax benefit of stock awards
Changes in noncontrolling interest
purchases and retirement of common stock
defined benefit pension plans, net of taxes:
prior service cost arising during year
net loss recognized due to settlement
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
Change in cumulative translation adjustment
balance, december 31, 2015
net income
payment of dividends to shareholders
issuance of restricted stock
issuance of stock awards
SSARs exercised
Stock compensation
investment by noncontrolling interests
Changes in noncontrolling interest
purchases and retirement of common stock
defined benefit pension plans, net of taxes:
prior service cost arising during year
net loss recognized due to settlement
net gain recognized due to curtailment
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
Change in cumulative translation adjustment
balance, december 31, 2016
Shares
Amount
97,362,466
–
–
14,907
367,100
30,477
–
–
1,437,465
–
–
–
(10,066,322)
–
–
–
–
–
–
–
89,146,093
–
–
15,711
172,759
22,176
–
–
–
(5,541,930)
–
–
–
–
–
–
–
83,814,809
–
–
15,395
27,333
21,106
–
–
–
(4,413,250)
–
–
–
–
–
–
–
–
79,465,393
$
$
1.0
–
–
–
–
–
–
–
–
–
–
–
(0.1)
–
–
–
–
–
–
–
0.9
–
–
–
–
–
–
–
–
(0.1)
–
–
–
–
–
–
–
0.8
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.8
the Consolidated Statements of Stockholders’ equity 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.
24 AGCO 2016 AnnuAl RepoRt
Additional
paid-in
Capital
Retained
earnings
defined
Benefit
pension
plans
Cumulative
translation
Adjustment
deferred
(losses)
Gains on
derivatives
Accumulated
other
Comprehensive
noncontrolling
Stockholders’
temporary
loss
interests
total
equity
$
1,117.9
$
3,402.0
$
(206.4) $
(304.1) $
(0.2) $
(510.7) $
$
4,044.8
$
equity
–
(6.3)
410.4
(40.8)
(349.0)
(653.1)
0.1
(0.1)
6.6
(0.3)
–
–
–
0.9
(11.8)
(1.2)
(11.7)
(0.2)
(11.8)
(499.6)
582.5
0.8
(5.6)
(0.7)
11.4
0.7
(287.4)
301.7
0.8
(0.9)
(0.9)
17.3
–
(2.2)
(212.5)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,771.6
266.4
(42.0)
3,996.0
160.1
(42.5)
0.4
(0.4)
(54.8)
0.6
7.3
(253.3)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(4.7)
0.2
2.1
0.4
6.3
–
–
(2.6)
0.4
(0.1)
(62.9)
1.1
8.6
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.4
(0.4)
(54.8)
0.6
7.3
0.1
(349.0)
(906.5)
(4.7)
0.2
2.1
0.4
6.3
(1.9)
(556.1)
(2.6)
0.4
(0.1)
(62.9)
1.1
8.6
(6.7)
80.8
34.6
0.1
16.1
(2.4)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
48.4
(2.4)
1.1
(2.1)
45.0
0.1
12.2
2.2
1.6
61.1
410.5
(40.8)
0.9
(11.8)
(1.2)
(11.7)
(0.2)
–
16.1
(2.4)
(11.8)
(499.7)
0.4
(0.4)
(54.8)
0.6
7.3
0.1
(349.0)
3,496.9
264.0
(42.0)
0.8
(5.6)
(0.7)
11.4
0.7
1.1
(287.5)
(4.7)
0.2
2.1
0.4
6.3
(1.9)
(558.2)
2,883.3
160.2
(42.5)
0.8
(0.9)
(0.9)
17.3
12.2
–
(212.5)
(2.6)
0.4
(0.1)
(62.9)
1.1
8.6
(6.7)
82.4
(556.1)
(1.9)
(249.0)
(1,209.2)
(2.0)
(1,460.2)
–
$
103.3
$
4,113.6
$
(304.5)
$ (1,128.4)
$
(8.7)
$ (1,441.6) $
$
2,837.2
$
–
(6.7)
80.8
Common Stock
Accumulated other Comprehensive loss
Additional
paid-in
Capital
Retained
earnings
defined
Benefit
pension
plans
Cumulative
translation
Adjustment
deferred
(losses)
Gains on
derivatives
Accumulated
other
Comprehensive
loss
noncontrolling
interests
total
Stockholders’
equity
Shares
Amount
97,362,466
$
1.0
$
balance, december 31, 2013
net income (loss)
payment of dividends to shareholders
issuance of restricted stock
issuance of stock awards
SSARs exercised
Stock compensation
Shortfall in tax benefit of stock awards
Conversion of 11/4% convertible senior subordinated notes
investment by noncontrolling interest
distribution to noncontrolling interest
Changes in noncontrolling interest
purchases and retirement of common stock
defined benefit pension plans, net of taxes:
net loss recognized due to settlement
net gain recognized due to curtailment
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
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
Change in cumulative translation adjustment
balance, december 31, 2014
net income (loss)
payment of dividends to shareholders
issuance of restricted stock
issuance of stock awards
SSARs exercised
Stock compensation
excess tax benefit of stock awards
Changes in noncontrolling interest
purchases and retirement of common stock
defined benefit pension plans, net of taxes:
prior service cost arising during year
net loss recognized due to settlement
net actuarial gain arising during year
deferred gains and losses on derivatives, net
Change in cumulative translation adjustment
balance, december 31, 2015
net income
payment of dividends to shareholders
issuance of restricted stock
issuance of stock awards
SSARs exercised
Stock compensation
investment by noncontrolling interests
Changes in noncontrolling interest
purchases and retirement of common stock
defined benefit pension plans, net of taxes:
prior service cost arising during year
net loss recognized due to settlement
net gain recognized due to curtailment
net actuarial loss arising during year
deferred gains and losses on derivatives, net
Change in cumulative translation adjustment
balance, december 31, 2016
Amortization of prior service cost included in net periodic pension cost
Amortization of net actuarial losses included in net periodic pension cost
14,907
367,100
30,477
1,437,465
(10,066,322)
(0.1)
89,146,093
0.9
15,711
172,759
22,176
(5,541,930)
(0.1)
83,814,809
0.8
15,395
27,333
21,106
(4,413,250)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$
1,117.9
–
–
0.9
(11.8)
(1.2)
(11.7)
(0.2)
–
–
–
(11.8)
(499.6)
–
–
–
–
–
–
–
582.5
–
–
0.8
(5.6)
(0.7)
11.4
0.7
–
(287.4)
–
–
–
–
–
–
–
301.7
–
–
0.8
(0.9)
(0.9)
17.3
–
(2.2)
(212.5)
–
–
–
–
–
–
–
3,402.0
410.4
(40.8)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,771.6
266.4
(42.0)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3,996.0
160.1
(42.5)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$
(206.4) $
–
–
–
–
–
–
–
–
–
–
–
–
(304.1) $
–
–
–
–
–
–
–
–
–
–
–
–
(0.2) $
–
–
–
–
–
–
–
–
–
–
–
–
(510.7) $
–
–
–
–
–
–
–
–
–
–
–
–
0.4
(0.4)
(54.8)
0.6
7.3
–
–
(253.3)
–
–
–
–
–
–
–
–
–
(4.7)
0.2
2.1
0.4
6.3
–
–
(249.0)
–
–
–
–
–
–
–
–
–
(2.6)
0.4
(0.1)
(62.9)
1.1
8.6
–
–
–
–
–
–
–
(349.0)
(653.1)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(556.1)
(1,209.2)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.1
–
(0.1)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1.9)
–
(2.0)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(6.7)
–
(8.7)
0.4
(0.4)
(54.8)
0.6
7.3
0.1
(349.0)
(906.5)
–
–
–
–
–
–
–
–
–
(4.7)
0.2
2.1
0.4
6.3
(1.9)
(556.1)
(1,460.2)
–
–
–
–
–
–
–
–
–
(2.6)
0.4
(0.1)
(62.9)
1.1
8.6
(6.7)
80.8
$ (1,441.6) $
temporary
equity
$
–
(6.3)
6.6
(0.3)
–
–
$
34.6
0.1
–
–
–
–
–
–
–
16.1
(2.4)
–
–
–
–
–
–
–
–
–
48.4
(2.4)
–
–
–
–
–
–
1.1
–
–
–
–
–
–
–
(2.1)
45.0
0.1
–
–
–
–
–
12.2
2.2
–
–
–
–
–
–
–
–
4,044.8
410.5
(40.8)
0.9
(11.8)
(1.2)
(11.7)
(0.2)
–
16.1
(2.4)
(11.8)
(499.7)
0.4
(0.4)
(54.8)
0.6
7.3
0.1
(349.0)
3,496.9
264.0
(42.0)
0.8
(5.6)
(0.7)
11.4
0.7
1.1
(287.5)
(4.7)
0.2
2.1
0.4
6.3
(1.9)
(558.2)
2,883.3
160.2
(42.5)
0.8
(0.9)
(0.9)
17.3
12.2
–
(212.5)
(2.6)
0.4
(0.1)
(62.9)
1.1
8.6
(6.7)
1.6
61.1
82.4
2,837.2
$
$
–
2016 AnnuAl RepoRt AGCO 25
the Consolidated Statements of Stockholders’ equity 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.
79,465,393
$
0.8
–
103.3
–
4,113.6
$
$
–
(304.5)
80.8
$ (1,128.4)
$
$
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, strategic
initiatives, commitments and their effects, 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 economic 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.
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 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 governmental
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.
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.
26 AGCO 2016 AnnuAl RepoRt
sHaREHolDER inFoRMation
corporate Headquarters
4205 River Green parkway
duluth, Georgia 30096 u.S.
+1-770-813-9200
independent Registered
Public accounting Firm
kpMG llp
Atlanta, Georgia u.S.
transfer agent & Registrar
Computershare trust Company, n.A.
211 Quality Circle, Suite 210
College Station, texas 77845 u.S.
+1-800-962-4284
stock Exchange
AGCo Corporation common stock
(trading symbol is “AGCo”) is traded
on the new york Stock exchange.
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 our corporate headquarters.
annual Meeting
the annual meeting of the Company’s
stockholders will be held at 9:00 a.m. et
on April 27, 2017 at the offices of
AGCo Corporation, 4205 River Green
parkway, duluth, Georgia 30096 u.S.
Follow us on twitter
@AGCocorp
Comparison of Cumulative Total Return
US$
250
200
150
100
50
0
AGCO Corporation
Custom Peer Group
S&P Midcap 400 Index
2011
2012
2013
2014
2015
2016
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, 2011. Assumes dividends reinvested. year ending december 31, 2016.
(1) Based on information for a self-constructed peer group of companies that includes: Caterpillar inc., Cnh industrial nv,
Cummins inc., deere & Company, eaton Corporation plc., ingersoll-Rand plc., navistar international Corporation,
PACCAR Inc., Parker-Hannifin Corporation, and Terex Corporation.
Paper made from
responsible sources
C002256
2016 AnnuAl RepoRt AGCO 27
GloBAl
RECOGNiTiON
in 2016, AGCo’S innovAtive
leAdeRShip wAS ReCoGniZed inteRnAtionAlly
with GloBAl induStRy AwARdS
Red dot deSiGn
AwARd 2016, eAMe*
the Fendt 1000 vario and
the valtra t234 were both
recognized in the Red dot
Award category “product
design.” it is one of the largest
and most respected design
competitions in the world,
attracting more than
5,200 products from
57 countries last year.
iF deSiGn AwARd
2016, eAMe
the Fendt 1000 vario tractor’s
contemporary design was
recognized with the iF design
Award Gold. the competition,
organized by iF international
Forum design Gmbh, is
one of the world’s most
celebrated and valued design
competitions that welcomes
over 5,000 submissions from
70 countries every year.
SeCuRe Supply ChAin
CeRtiFiCAte, eAMe
AGCo was awarded the newly
introduced “Secure Supply
Chain” benchmark certificate
by the Association for
Supply Chain Management,
procurement and logistics
(BMe), europe’s leading
supply chain association.
FACtoRy oF the
yeAR, eAMe
the Beauvais, France tractor
manufacturing facility won
the Factory of the year 2016
award from L’Usine Nouvelle,
the leading industrial magazine
in France, over a wide range
of other industries from
within France.
eXpoRt GRAnd pRiX
AwARdS, eAMe
the Beauvais, France tractor
manufacturing facility won the
Foreign exporter Award (le prix
de l’exportateur etranger) at
the export Grand prix Awards
given by BFM Business,
France’s economics tv
and Radio news channel.
the award recognizes the
plant’s major contribution
to the country’s economy.
MAnuFACtuRinG
leAdeRShip
AwARdS, nA**
AGCo was presented with
the 2016 “internet of things
in Manufacturing leadership”
award by Frost & Sullivan’s
Manufacturing leadership
Council. the Manufacturing
leadership Awards honor
organizations and individuals
that are shaping the future
of global manufacturing.
* eAMe = europe/Africa/Middle east **nA = north America
28 AGCO 2016 AnnuAl RepoRt
Good deSiGn
AwARd, eAMe
the valtra t Series won the
Good deSiGn™ Award for new
consumer products globally
for design, functionality and
innovativeness by the Chicago
Athenaeum Museum of
Architecture and design
in cooperation with the
european Centre for
design and Architecture.
© 2017 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.
4205 River Green Parkway
Duluth, Georgia 30096 U.S.
+1-770-813-9200
www.AGCOcorp.com
For a truly interactive experience
either online or on your mobile device,
please view our annual report at:
ar2016.AGCOcorp.com