WABCO Holdings Inc.

CIK:0001390844|SEC Filings

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Sales	$ 745.7	$ 932.9
Cost of sales	533.8	660.0
Gross profit	211.9	272.9
Costs and expenses:
Selling and administrative expenses	114.1	120.4
Research, development and engineering expenses	51.3	48.4
Other operating income, net	(0.2)	(1.1)
Operating income	46.7	105.2
Equity income of unconsolidated joint ventures, net	0.5	0.6
Other non-operating expense, net	(12.3)	(5.9)
Interest (expense)/income, net	(0.1)	0.1
Income before income taxes	34.8	100.0
Income tax expense	7.4	12.1
Net income including noncontrolling interests	27.4	87.9
Less: net income attributable to noncontrolling interests	2.2	3.7
Net income attributable to Company	$ 25.2	$ 84.2
Net income attributable to Company per common share
Basic (in usd per share)	$ 0.49	$ 1.64
Diluted (in usd per share)	0.49	1.64
Cash dividends per share of common stock (in usd per share)	$ 0	$ 0
Weighted average common shares outstanding
Basic (in shares)	51,321,512	51,233,141
Diluted (in shares)	51,395,851	51,330,942

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net income including noncontrolling interests	$ 27.4	$ 87.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	23.5	25.9
Change in fair value of non-marketable equity securities	4.7	0.0
Amortization of intangibles	6.1	6.6
Equity in earnings of unconsolidated joint ventures, net of dividends received	(0.5)	(0.6)
Non-cash stock compensation	2.6	4.1
Non-cash interest expense and debt issuance cost amortization	2.6	2.6
Deferred income tax benefit	(11.9)	(10.4)
Pension and post-retirement benefit expense	18.0	16.4
Foreign currency effects on changes in monetary assets/liabilities	5.5	4.9
Unrealized loss/(gain) on revaluation of foreign currency forward contracts	0.3	(1.6)
Other	1.9	(0.4)
Changes in assets and liabilities:
Accounts receivable, net	(16.8)	(68.6)
Inventories, net	(79.2)	(40.6)
Accounts payable	42.4	47.3
Other accrued liabilities and taxes	17.8	17.2
Other current and long-term assets	(51.2)	(24.9)
Other long-term liabilities	0.4	(1.4)
Pension and post-retirement benefit contributions	(5.7)	(5.6)
Net cash (used)/provided by operating activities	(12.1)	58.8
Investing activities:
Purchases of property, plant and equipment	(33.8)	(39.1)
Investments in capitalized software	(1.2)	(1.4)
Purchases of short-term investments and repurchase agreements	(155.3)	(267.9)
Sales and maturities of short-term investments and repurchase agreements	153.1	298.6
Investments in unconsolidated joint ventures	0.0	(0.3)
Payments For Asset Acquisitions	265.0	0.0
Net cash used by investing activities	(302.2)	(10.1)
Financing activities:
Net borrowings of short-term debt	0.0	85.2
Purchases of treasury stock	0.0	(30.6)
Taxes withheld and paid on employee stock award vestings	(5.5)	(4.8)
Dividends to noncontrolling interest holders	(0.6)	(2.3)
Proceeds from noncontrolling interest holders	0.0	3.9
Proceeds from exercise of stock options	0.3	0.5
Net cash (used)/provided by financing activities	(5.8)	51.9
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(21.9)	(1.0)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(342.0)	99.6
Cash, cash equivalents and restricted cash at beginning of period	892.4	504.2
Cash, cash equivalents and restricted cash at end of period	550.4	603.8
Cash paid during the period for:
Interest	5.5	6.2
Income taxes	16.3	12.4
Increase in capital expenditures included in accounts payable and other accrued liabilities	0.4	9.7
Cash and cash equivalents	549.9	603.3
Cash, cash equivalents and restricted cash at end of period	$ 550.4	$ 603.8

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 549.9	$ 891.8
Short-term investments	65.4	67.6
Accounts receivable, less allowance for doubtful accounts of $10.7 in 2020 and $12.3 in 2019	524.6	523.3
Inventories, net	361.5	292.9
Guaranteed notes receivable	53.8	35.0
Other current assets	125.3	103.7
Total current assets	1,680.5	1,914.3
Property, plant and equipment, net	573.5	593.0
Operating lease right–of–use assets	94.6	100.8
Goodwill	792.1	802.5
Deferred tax assets	280.4	275.0
Investments in unconsolidated joint ventures	11.9	11.5
Intangible assets, net	482.0	226.9
Other assets	101.9	113.1
TOTAL ASSETS	4,016.9	4,037.1
Current liabilities:
Accounts payable	217.6	185.0
Accrued payroll	113.7	108.3
Current portion of warranties	32.8	28.1
VAT payable	21.6	11.4
Accrued expenses	63.4	68.7
Promotion and customer incentives	18.8	24.8
Accrued income tax	30.2	24.1
Other Liabilities, Current	113.2	121.1
Total current liabilities	611.3	571.5
Long-term debt	813.9	828.3
Operating lease liabilities	69.2	74.2
Pension and post-retirement benefits	808.9	821.8
Deferred tax liabilities	72.0	71.2
Long-term income tax liabilities	156.8	156.9
Other liabilities	75.4	77.1
TOTAL LIABILITIES	2,607.5	2,601.0
Shareholders' equity:
Preferred stock, 4,000,000 shares authorized; none issued and outstanding	0.0	0.0
Common stock, $.01 par value, 400,000,000 shares authorized; shares issued: 79,237,625 in 2020; 79,147,135 in 2019; and shares outstanding: 51,374,175 in 2020; 51,267,324 in 2019	0.8	0.8
Capital surplus	899.3	902.1
Treasury stock, at cost: 27,863,450 shares in 2020; 27,879,811 shares in 2019	(2,185.0)	(2,186.3)
Retained earnings	3,237.0	3,212.3
Accumulated other comprehensive loss	(635.9)	(588.7)
Total shareholders’ equity	1,316.2	1,340.2
Noncontrolling interests	93.2	95.9
Total equity	1,409.4	1,436.1
TOTAL LIABILITIES AND EQUITY	$ 4,016.9	$ 4,037.1