John Bean Technologies Corporation (JBT) reported first-quarter 2024 adjusted earnings from continuing operations of 85 cents per share, up 39% from the year-ago quarter, reflecting cost savings from its supply-chain initiatives and restructuring program. The figure beat the Zacks Consensus Estimate of earnings of 82 cents per share.On a reported basis, the company’s earnings per share (from continuing operations) were 71 cents, a 34% improvement from the year-ago quarter’s 53 cents.Revenues of $392 million ...

▪ North American poultry market fundamentals have continued to improve, leading to better cash flow and profitability as well as a more positive sentiment for investment among JBT customers; JBT's pipeline activity is improving, which is expected to translate to increased orders during Q2 2024 ▪ Q1 2024 recurring revenue was 52% versus 56% in the prior year Note: Figures may have immaterial differences due to rounding. 2 5 Strong Balance Sheet to Support JBT Initiatives 3.0x 2.8x 0.5x 0.6x 0.6x 0.0x $0 $500 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q | ☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | --- | --- | | | For the quarterly period ended March 31, 2024 | | | or | | ☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | | For the transition period from ______ to ______ | Commission File Number 1-34036 John Bean Technologies Corporation (Exact name of registrant as specified in ...

John Bean (JBT) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.66%. A quarter ago, it was expected that this food processing and transportation services company would post earnings of $1.39 per share when it actually produced earnings of $1.40, delivering a surprise of 0.72%.Over t ...

Exhibit 99.1 News Release JBT Corporation 70 W. Madison Suite 4400 Chicago, IL 60602 JBT Corporation Reports First Quarter 2024 Results and Reiterates Full Year 2024 Adjusted EBITDA and Adjusted EPS Guidance First Quarter Highlights: (Results are from continuing operations with comparisons to the prior year period) AeroTech's financial results were transitioned to discontinued operations beginning in the second quarter of 2023, and prior period financial results have been recast accordingly. The below parag ...

Wall Street expects a year-over-year decline in earnings on lower revenues when John Bean (JBT) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lo ...

PART I [Item 1. Business](index=8&type=section&id=Item%201.%20Business) JBT Corporation is a global technology solutions and service provider for the food and beverage industry, enhancing customer success through sophisticated products and systems - JBT Corporation is a leading global technology solutions and service provider to high-value segments of the food and beverage industry, designing, producing, and servicing sophisticated products and systems for multi-national and regional customers[21](index=21&type=chunk) - On August 1, 2023, JBT completed the sale of its AeroTech business segment, aligning with the company's strategy to become a pure-play food and beverage solutions provider[24](index=24&type=chunk) - Recurring revenue, primarily from aftermarket parts, service offerings, and digital solutions like OmniBlu™, accounted for **51% of total revenue in 2023**, driven by a large installed base of systems and equipment[25](index=25&type=chunk) [1.1 General Business Overview](index=8&type=section&id=1.1%20General%20Business%20Overview) JBT Corporation is a global technology solutions provider for the food and beverage industry, enhancing customer success through improved yields and efficiency - JBT Corporation is a leading global technology solutions and service provider to high-value segments of the food and beverage industry[21](index=21&type=chunk) - The company's mission is to enhance customer success by providing solutions that improve yields and boost efficiency in food and beverage processing[21](index=21&type=chunk) - JBT was incorporated in Delaware in May 1994 as Frigoscandia, Inc., with principal executive offices in Chicago, Illinois[22](index=22&type=chunk) [1.2 Core Business and Strategy](index=8&type=section&id=1.2%20Core%20Business%20and%20Strategy) JBT provides comprehensive food production solutions and automated guided vehicle systems, strategically divesting AeroTech to focus on food and beverage - JBT provides comprehensive solutions across the food production value chain, from primary processing to packaging systems, for various food and beverage groups[23](index=23&type=chunk) - The company also offers stand-alone and fully integrated automated guided vehicle systems for repetitive material handling in manufacturing, warehousing, and other facilities[23](index=23&type=chunk) - The sale of the AeroTech business segment on August 1, 2023, supports JBT's strategy to become a pure-play food and beverage solutions provider[24](index=24&type=chunk) [1.3 Product and Service Offerings](index=8&type=section&id=1.3%20Product%20and%20Service%20Offerings) JBT offers diverse food and beverage processing equipment, automated guided vehicle systems, and comprehensive aftermarket services including digital solutions - JBT's Food and Beverage Solutions include primary, secondary, and further value-added processing equipment for chilling, mixing, cooking, freezing, extracting, pasteurizing, and packaging[26](index=26&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - Automated Guided Vehicle Systems provide robotic solutions for material movement in industries like automotive, food and beverage, and healthcare[26](index=26&type=chunk)[36](index=36&type=chunk) - Aftermarket offerings include parts, services, retrofits, refurbishments, food-grade lubricants, packaging material components, and digital solutions like OmniBlu™ leveraging AI and machine learning[25](index=25&type=chunk)[37](index=37&type=chunk) [1.4 Sales, Marketing, and Competition](index=12&type=section&id=1.4%20Sales%2C%20Marketing%2C%20and%20Competition) JBT employs a direct sales force and competes globally by leveraging differentiated technology, integrated systems, and comprehensive aftermarket services - JBT sells and markets products through a direct sales force, supplemented by distributors, representatives, and technical service teams, supported by marketing and training programs[39](index=39&type=chunk)[40](index=40&type=chunk) - The company competes globally with large multinational and regional companies by leveraging differentiated technology, integrated systems, high product quality, reliability, and comprehensive aftermarket services[41](index=41&type=chunk)[43](index=43&type=chunk) - Key competitive advantages include lower total cost of ownership, reliable uptime, labor reduction through automation, increased yields, improved product quality, and support for environmental goals[43](index=43&type=chunk) [1.5 Geographic Information and Customers](index=12&type=section&id=1.5%20Geographic%20Information%20and%20Customers) JBT operates globally across over 25 countries, serving a diversified customer base with no single customer accounting for more than 10% of revenue - JBT operates globally with facilities and sales/service offices strategically positioned in over **25 countries** to serve an installed equipment base in more than **100 countries**[28](index=28&type=chunk)[44](index=44&type=chunk) - No single customer accounted for more than **10% of total revenue** in any of the last three fiscal years, indicating a diversified customer base[45](index=45&type=chunk) [1.6 Intellectual Property](index=12&type=section&id=1.6%20Intellectual%20Property) JBT maintains a robust intellectual property portfolio, including 659 patents and 703 trademarks, to extend its technology leadership - JBT owns approximately **659 United States and foreign issued patents** and has about **307 patent applications pending**[46](index=46&type=chunk) - The company also holds numerous United States and foreign trademarks and trade names, with approximately **703 registrations and pending applications**[46](index=46&type=chunk) - Developing and maintaining a strong intellectual property portfolio is a key component of JBT's strategy to extend its technology leadership[46](index=46&type=chunk) [1.7 Raw Materials and Working Capital](index=13&type=section&id=1.7%20Raw%20Materials%20and%20Working%20Capital) JBT sources raw materials globally without single-source reliance and maintains a less working capital intensive business due to customer advance payments - JBT purchases carbon steel, stainless steel, aluminum, and castings/forgings globally, without relying on single-source suppliers for most raw materials[47](index=47&type=chunk) - The company has implemented supply chain and strategic sourcing initiatives to minimize impacts from global disruptions, improving lead times and stabilizing raw material costs[47](index=47&type=chunk) - JBT's business is less working capital intensive than many other industrial capital goods industries due to customer deposits or advance payments received before equipment construction[48](index=48&type=chunk) [1.8 Human Capital Management](index=13&type=section&id=1.8%20Human%20Capital%20Management) JBT employs approximately 5,100 individuals globally, prioritizing employee safety and fostering Diversity, Equity, Inclusion, and Belonging (DEIB) - As of fiscal year-end 2023, JBT had approximately **5,100 employees worldwide**, with **46% in the United States**; none of its U.S. employees are unionized, while **49% of international employees** are covered by global representation bodies[49](index=49&type=chunk) - JBT prioritizes employee safety with a 'Zero Incidents, Worldwide, Every Day' objective, implementing a global Near Miss and Behavior-Based Safety Observations program[50](index=50&type=chunk) - The company is committed to Diversity, Equity, Inclusion, and Belonging (DEIB), with a Global DEIB Council, Employee Network Communities (ENCs), and a global education program including Unconscious Bias training[51](index=51&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [1.9 Governmental Regulation and Environmental Matters](index=14&type=section&id=1.9%20Governmental%20Regulation%20and%20Environmental%20Matters) JBT's operations are subject to various environmental, health, safety, and trade regulations, with policies and training in place to ensure compliance - JBT's operations are subject to various federal, state, local, and foreign environmental laws and regulations, including those governing pollution prevention and environmental quality[60](index=60&type=chunk) - The company is also subject to laws and regulations related to worker health and safety (e.g., OSHA), conflict minerals, forced labor, export compliance, and anti-corruption[62](index=62&type=chunk)[63](index=63&type=chunk) - JBT has adopted policies, procedures, and employee training programs to facilitate compliance with these laws and regulations[63](index=63&type=chunk) [1.10 Available Information](index=16&type=section&id=1.10%20Available%20Information) JBT's SEC filings, including periodic and current reports, are publicly available free of charge on its website and the SEC's website - JBT's periodic and current reports, registration statements, and other SEC filings are available free of charge on its website (www.jbtc.com) under 'Investor Relations – SEC Filings' and on the SEC's website (www.sec.gov)[64](index=64&type=chunk) [1.11 Information About Our Executive Officers](index=16&type=section&id=1.11%20Information%20About%20Our%20Executive%20Officers) This section provides a table of JBT Corporation's executive officers as of February 16, 2024, including their age and office JBT Corporation Executive Officers (as of February 16, 2024) | Name | Age | Office | | :--------------- | :-- | :---------------------------------------- | | Brian A. Deck | 55 | President and Chief Executive Officer | | Matthew J. Meister | 45 | Executive Vice President and Chief Financial Officer | | Shelley Bridarolli | 53 | Executive Vice President, Chief Human Resources Officer | | James L. Marvin | 63 | Executive Vice President, General Counsel and Assistant Secretary | | Kristina Paschall | 49 | Executive Vice President, Chief Information and Digital Officer | | Jack Martin | 60 | Executive Vice President, Supply Chain | | Luiz "Augusto" Rizzolo | 46 | Executive Vice President and President, Diversified Food and Health | | Robert Petrie | 54 | Executive Vice President and President, Protein | | Jessi L. Corcoran | 41 | Vice President, Corporate Controller and Chief Accounting Officer | [Item 1A. Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) JBT faces a range of significant risks, including uncertainties related to the proposed merger with Marel, potential dilution, and increased indebtedness - The proposed merger with Marel is subject to significant risks, including the uncertainty of consummation, integration challenges, potential dilution for existing shareholders, and substantially increased indebtedness for the combined company[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - JBT's financial results are subject to fluctuations due to factors like demand volatility, economic conditions, commodity price increases, supply chain delays, labor market tightness, competitive pressures, and cybersecurity threats[80](index=80&type=chunk)[81](index=81&type=chunk)[86](index=86&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - The company faces industry risks from deteriorating economic conditions, variability in sales cycles, inability to secure raw materials, increased energy/raw material prices impacting customer profitability, changes in food consumption patterns, and natural disasters or animal/foodborne diseases[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[100](index=100&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [1A.1 Risks Related to the Proposed Merger](index=18&type=section&id=1A.1%20Risks%20Related%20to%20the%20Proposed%20Merger) The proposed merger with Marel carries substantial risks, including integration challenges, regulatory hurdles, shareholder dilution, and increased debt for the combined entity - The proposed business combination with Marel is subject to significant risks and uncertainties, including the completion of due diligence, regulatory approvals, shareholder approvals, and the ability to successfully integrate the businesses[15](index=15&type=chunk)[77](index=77&type=chunk) - Failure to consummate the merger could result in increased transaction costs and potential break fees[77](index=77&type=chunk) - The issuance of new shares for the merger will dilute existing shareholders, and the combined company's indebtedness is expected to be substantially greater, potentially reducing financial flexibility and increasing borrowing costs[79](index=79&type=chunk) [1A.2 Business and Operational Risks](index=18&type=section&id=1A.2%20Business%20and%20Operational%20Risks) JBT faces financial fluctuations, key personnel loss, infrastructure failures, and cybersecurity threats that could disrupt operations and harm financial performance - JBT's financial results are subject to fluctuations due to factors like demand volatility, economic downturns, commodity price increases, supply chain delays, and labor costs[80](index=80&type=chunk)[81](index=81&type=chunk)[86](index=86&type=chunk) - The loss of key personnel or inability to attract talent could adversely affect business growth and strategic planning[82](index=82&type=chunk) - Infrastructure failures, catastrophic losses at facilities, or disruptions to information systems (including cyber-security risks) could lead to production curtailments, operational disruptions, and financial harm[88](index=88&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) [1A.3 Industry Risks](index=23&type=section&id=1A.3%20Industry%20Risks) JBT is exposed to industry risks from economic downturns, sales cycle variability, supply chain disruptions, and changes in food consumption patterns or disease outbreaks - Deterioration of economic conditions (recession, high unemployment, rising interest rates) could adversely impact demand for JBT's products, increase raw material costs, and impair customer/supplier financial health[94](index=94&type=chunk)[97](index=97&type=chunk) - Variability in sales cycles makes revenue estimation difficult, leading to significant fluctuations in quarterly operating results[95](index=95&type=chunk) - Changes in food consumption patterns (dietary trends, economic conditions) or outbreaks of animal/foodborne diseases, natural disasters, or adverse weather conditions could negatively affect demand for food processing equipment[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk) [1A.4 Legal and Regulatory Risks](index=27&type=section&id=1A.4%20Legal%20and%20Regulatory%20Risks) International operations expose JBT to political, regulatory, and economic risks, alongside challenges from changing trade policies and climate change initiatives - International operations expose JBT to risks from political, regulatory, economic, and social conditions in various countries, including economic downturns, civil unrest, and trade restrictions[114](index=114&type=chunk)[115](index=115&type=chunk) - Changes to trade regulations, quotas, duties, or tariffs (e.g., U.S. tariffs on steel/aluminum) could increase costs or limit imports, adversely impacting business[116](index=116&type=chunk)[117](index=117&type=chunk) - Increased attention to climate change and environmental protection initiatives may lead to higher costs, reduced demand, new regulatory requirements, and reputational risks[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) [1A.5 Business Strategy Risks](index=30&type=section&id=1A.5%20Business%20Strategy%20Risks) Acquisitions, growth initiatives, and restructuring efforts carry inherent risks, including integration challenges, unachieved returns, and failure to meet anticipated benefits - Acquisitions involve risks such as additional debt, unknown liabilities, integration challenges, failure to retain key employees, and unanticipated demands on management and systems[128](index=128&type=chunk) - Investments in growth markets and strategic initiatives (like OmniBlu™ digital solution) may not achieve expected returns or growth rates[130](index=130&type=chunk) - Restructuring initiatives may not achieve anticipated cost reductions or other benefits within the expected timeframe due to economic and competitive uncertainties[131](index=131&type=chunk) [1A.6 Technology Risks](index=32&type=section&id=1A.6%20Technology%20Risks) JBT faces technology risks related to the continuous development of complex solutions, reliability of new technologies, and protection of intellectual property - To remain competitive, JBT must rapidly develop and introduce complex new solutions, including keeping pace with generative AI and machine learning technologies, which requires significant investment[133](index=133&type=chunk)[137](index=137&type=chunk)[140](index=140&type=chunk) - Failure to deliver projected products/features, or issues with new technology reliability, could harm reputation and business[133](index=133&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - Inability to develop, preserve, and protect intellectual property assets, or claims of infringement by others, could negatively affect business and financial results[141](index=141&type=chunk)[142](index=142&type=chunk) [1A.7 Risks Related to Ownership of Our Securities](index=35&type=section&id=1A.7%20Risks%20Related%20to%20Ownership%20of%20Our%20Securities) Convertible note transactions and warrant exercises may dilute existing stockholders and expose JBT to counterparty risk, potentially affecting security values - Convertible note hedge and warrant transactions may negatively affect the value of the Notes and common stock, and the exercise of warrants could dilute existing stockholders' ownership interests[143](index=143&type=chunk)[147](index=147&type=chunk) - JBT is subject to counterparty risk with respect to convertible note hedge transactions, as option counterparties are financial institutions whose default could lead to adverse tax consequences and increased dilution[145](index=145&type=chunk)[146](index=146&type=chunk) [1A.8 General Risks](index=35&type=section&id=1A.8%20General%20Risks) JBT faces general risks from currency exchange rate fluctuations, geopolitical events, restrictive financing covenants, and potential goodwill impairment - Fluctuations in currency exchange rates can adversely affect JBT's costs and earnings, as a significant portion of revenue and expenses are in foreign currencies[148](index=148&type=chunk) - Terrorist attacks, acts of war, or outbreaks of pandemic diseases could negatively impact operations, customer demand, and supply chains[149](index=149&type=chunk) - JBT's indebtedness and restrictive covenants in financing agreements could limit cash flow, flexibility, and potentially lead to default if not met[150](index=150&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [Item 1B. Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - No unresolved staff comments were reported[164](index=164&type=chunk) [Item 1C. Cybersecurity](index=40&type=section&id=Item%201C.%20Cybersecurity) JBT maintains a comprehensive cybersecurity program led by a CISO to protect its systems and information assets - JBT maintains a comprehensive technology and cybersecurity program, led by a CISO, to ensure the confidentiality, integrity, and availability of its information assets[165](index=165&type=chunk)[166](index=166&type=chunk) - The program includes regular evaluations, security monitoring, preventative and detective tools, an incident response program, and mandatory annual employee training[165](index=165&type=chunk)[166](index=166&type=chunk) - A Cybersecurity Steering Committee and the Audit Committee provide oversight, with material security instances reported to the Audit Committee and Board[167](index=167&type=chunk)[168](index=168&type=chunk) [Item 2. Properties](index=42&type=section&id=Item%202.%20Properties) JBT's corporate headquarters are leased in Chicago, Illinois, and the company operates significant production facilities across multiple countries - JBT leases approximately **24,000 square feet** for its corporate headquarters in Chicago, Illinois[171](index=171&type=chunk) - The company operates significant production facilities in the United States (e.g., Madera, CA; Lakeland, FL; Sandusky, OH) and internationally (e.g., Sint Niklaas, Belgium; Helsingborg, Sweden; Werther, Germany)[171](index=171&type=chunk) - JBT believes its properties and facilities are in good operating condition and meet current operating requirements[171](index=171&type=chunk) [Item 3. Legal Proceedings](index=43&type=section&id=Item%203.%20Legal%20Proceedings) JBT is involved in ordinary course legal proceedings, with management believing their resolution will not materially adversely affect the company's financial condition - JBT is involved in legal proceedings in the ordinary course of business, some of which seek substantial relief or damages[172](index=172&type=chunk)[173](index=173&type=chunk) - Management believes that the outcome of these actions, individually or in aggregate, will not have a material adverse effect on the company's business, results of operations, cash flows, or financial condition[172](index=172&type=chunk)[173](index=173&type=chunk) - Liabilities for pending legal claims are established only when losses are judged to be probable and can be reasonably estimated[174](index=174&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to JBT Corporation - Item 4. Mine Safety Disclosures is not applicable to JBT Corporation[176](index=176&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) JBT's common stock is listed on the NYSE under the symbol JBT, with 1,159 holders of record as of February 16, 2024 - JBT's common stock is listed on the New York Stock Exchange under the symbol JBT[178](index=178&type=chunk) - As of February 16, 2024, there were **1,159 holders of record** of JBT's common stock[178](index=178&type=chunk) Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :-------------------------------------- | :------------------------------- | :--------------------------- | | October 1, 2023 through October 31, 2023 | 19,757 | $102.82 | | November 1, 2023 through November 30, 2023 | 30,235 | $102.35 | | December 1, 2023 through December 31, 2023 | — | — | | **Total** | **49,992** | **$102.54** | [Item 6. [Reserved]](index=47&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information - Item 6 is reserved and contains no information[183](index=183&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) JBT's management discussion highlights strong 2023 operational performance, driven by equipment demand and resilient aftermarket revenue, with improved operating margins - JBT's Elevate 2.0 strategy focuses on four key areas: Organic Growth, Digital Transformation (OmniBlu™), Margin Enhancement through supply chain initiatives, and Acquisitions[185](index=185&type=chunk)[188](index=188&type=chunk) - Operational performance was strong in 2023, with healthy equipment demand in beverages, warehouse automation, and pharmaceuticals/nutraceuticals, and resilient aftermarket parts and service revenue[189](index=189&type=chunk) - Operating margins improved meaningfully in 2023 due to improved price-cost realizations, restructuring program savings, and strategic sourcing initiatives[190](index=190&type=chunk) [7.1 Executive Overview](index=48&type=section&id=7.1%20Executive%20Overview) JBT is a global technology solutions provider for the food and beverage industry, with its Elevate 2.0 strategy focusing on growth and margin expansion - JBT is a leading global technology solutions provider to high-value segments of the food and beverage industry[184](index=184&type=chunk) - The Elevate 2.0 strategy, announced in early 2022, aims for continued growth and margin expansion through organic growth, digital transformation (OmniBlu™), margin enhancement, and strategic acquisitions[185](index=185&type=chunk)[188](index=188&type=chunk) - The sale of the AeroTech business segment on August 1, 2023, supports the company's strategy to become a pure-play food and beverage solutions provider[186](index=186&type=chunk) [7.2 Business Conditions and Outlook](index=49&type=section&id=7.2%20Business%20Conditions%20and%20Outlook) JBT achieved strong operational performance and improved operating margins in 2023, with expectations for continued demand and margin expansion in 2024 - JBT experienced strong operational performance in 2023, with healthy equipment demand in diverse end markets like beverages, warehouse automation, and pharmaceuticals/nutraceuticals[189](index=189&type=chunk) - Operating margins improved significantly in 2023, driven by better price-cost realizations, restructuring savings, and strategic sourcing initiatives[190](index=190&type=chunk) - For 2024, JBT expects improved demand as interest rates decline and poultry market dynamics improve, along with continued margin increases from continuous improvement efforts and strategic initiatives[191](index=191&type=chunk) [7.3 Components of Results of Operations](index=49&type=section&id=7.3%20Components%20of%20Results%20of%20Operations) JBT's revenue is categorized as non-recurring and recurring, with cost of sales including direct and indirect costs, and SG&A covering employee and corporate functions - Revenue is derived from equipment sales/leases, aftermarket goods/services, and software, categorized as non-recurring (equipment, software licenses) and recurring (aftermarket, re-builds, operating leases, subscriptions)[192](index=192&type=chunk) - Cost of sales includes direct costs (labor, raw materials) and indirect costs (manufacturing overhead, amortization of capitalized software/patents)[193](index=193&type=chunk) - Selling, general and administrative (SG&A) expenses cover employee-related costs for sales, marketing, and corporate functions, including stock-based compensation and costs for the OmniBlu platform[194](index=194&type=chunk)[195](index=195&type=chunk) [7.4 Results of Continuing Operations](index=51&type=section&id=7.4%20Results%20of%20Continuing%20Operations) This section presents JBT's consolidated results of operations for 2023 versus 2022, and 2022 versus 2021, highlighting revenue, gross profit, and net income Consolidated Results of Operations (2023 vs 2022) | (In millions) | 2023 | 2022 | Change | Change % | | :-------------------------------- | :------ | :------ | :------ | :--------- | | Revenue | $1,664.4 | $1,590.3 | $74.1 | 4.7% | | Cost of sales | 1,078.7 | 1,060.9 | (17.8) | (1.7)% | | Gross profit | 585.7 | 529.4 | 56.3 | 10.6% | | Gross Profit % | 35.2% | 33.3% | 190 bps | | | Selling, general and administrative expense | 409.6 | 389.7 | (19.9) | (5.1)% | | Restructuring expense | 11.4 | 7.1 | (4.3) | (60.6)% | | Operating income | 164.7 | 132.6 | 32.1 | 24.2% | | Interest income | 13.4 | 3.7 | 9.7 | 262.2% | | Interest expense | 24.3 | 16.3 | (8.0) | (49.1)% | | Income from continuing operations | 129.3 | 103.8 | 25.5 | 24.6% | | Income from discontinued operations, net of taxes | 453.3 | 33.6 | 419.7 | 1,249.1% | | Net income | $582.6 | $137.4 | $445.2 | 324.0% | | Adjusted EBITDA from continuing operations | $273.1 | $227.7 | $45.4 | 19.9% | | Adjusted EBITDA % from continuing operations | 16.4% | 14.3% | 210 bps | | Consolidated Results of Operations (2022 vs 2021) | (In millions) | 2022 | 2021 | Change | Change % | | :-------------------------------- | :------ | :------ | :------ | :--------- | | Revenue | $1,590.3 | $1,400.8 | $189.5 | 13.5% | | Cost of sales | 1,060.9 | 918.7 | (142.2) | (15.5)% | | Gross profit | 529.4 | 482.1 | 47.3 | 9.8% | | Gross Profit % | 33.3% | 34.4% | -110 bps | | | Selling, general and administrative expense | 389.7 | 351.4 | (38.3) | (10.9)% | | Restructuring expense | 7.1 | 5.1 | (2.0) | (39.2)% | | Operating income | 132.6 | 125.6 | 7.0 | 5.6% | | Interest income | 3.7 | 3.8 | (0.1) | (2.6)% | | Interest expense | 16.3 | 11.2 | (5.1) | (45.5)% | | Income from continuing operations | 103.8 | 92.5 | 11.3 | 12.2% | | Income from discontinued operations, net of taxes | 33.6 | 26.6 | 7.0 | 26.3% | | Net income | $137.4 | $119.1 | $18.3 | 15.4% | | Adjusted EBITDA from continuing operations | $227.7 | $212.2 | $15.5 | 7.3% | | Adjusted EBITDA % from continuing operations | 14.3% | 15.1% | -80 bps | | [7.5 Reconciliation of Non-GAAP Measures](index=55&type=section&id=7.5%20Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP measures like Adjusted EBITDA from continuing operations, used by management to evaluate performance and allocate resources - Adjusted EBITDA from continuing operations and Adjusted EBITDA margin from continuing operations are key non-GAAP measures used by management to evaluate performance, allocate resources, and provide transparency into operating results[224](index=224&type=chunk) - These non-GAAP measures adjust for items like restructuring-related costs, M&A-related costs, pension-related costs, and constant currency impacts[224](index=224&type=chunk) Reconciliation of Income from Continuing Operations to Adjusted EBITDA (in millions) | (In millions) | 2023 | 2022 | 2021 | | :-------------------------------- | :------ | :------ | :------ | | Income from continuing operations | $129.3 | $103.8 | $92.5 | | Income tax provision | 23.5 | 16.2 | 27.0 | | Interest expense, net | 10.9 | 12.6 | 7.4 | | Depreciation and amortization | 91.3 | 76.2 | 72.1 | | **EBITDA from continuing operations** | **255.0** | **208.8** | **199.0** | | Restructuring related costs | 11.4 | 7.3 | 5.3 | | Pension expense (income), other than service cost | 0.7 | — | (1.3) | | M&A related costs | 6.0 | 11.6 | 9.2 | | **Adjusted EBITDA from continuing operations** | **$273.1** | **$227.7** | **$212.2** | [7.6 Restructuring](index=56&type=section&id=7.6%20Restructuring) JBT completed its 2020 restructuring plan and is implementing a 2022/2023 plan to optimize its global cost structure, with expected completion by Q1 2024 - The 2020 restructuring plan for manufacturing capacity rationalization was completed as of June 30, 2022, with a total cost of **$11.0 million**[230](index=230&type=chunk) - The 2022/2023 restructuring plan, implemented to optimize the global cost structure, recognized **$16.8 million in charges** as of December 31, 2023, with total estimated costs revised to **$17.0-$18.0 million**, expected to be recognized by Q1 2024[231](index=231&type=chunk) Cumulative and Incremental Restructuring Savings (2022/2023 Plan) | (In millions) | Cumulative As of Dec 31, 2022 | Incremental During Year Ended Dec 31, 2023 | Cumulative As of Dec 31, 2023 | | :---------------------------- | :---------------------------- | :----------------------------------------- | :---------------------------- | | Cost of sales | $0.1 | $4.8 | $4.9 | | Selling, general and administrative | $0.1 | $6.1 | $6.2 | | **Total restructuring savings** | **$0.2** | **$10.9** | **$11.1** | [7.7 Inbound Orders and Order Backlog](index=56&type=section&id=7.7%20Inbound%20Orders%20and%20Order%20Backlog) JBT's inbound orders from continuing operations increased in 2023, leading to a higher order backlog, with most expected to convert to revenue in 2024 - Inbound orders from continuing operations increased by **$80.1 million** (or **$83.8 million** on a constant currency basis) to **$1,667.5 million in 2023** compared to **$1,587.4 million in 2022**[234](index=234&type=chunk)[235](index=235&type=chunk) - Order backlog from continuing operations increased by **$13.8 million** to **$678.2 million** as of December 31, 2023, from **$664.4 million in 2022**[235](index=235&type=chunk)[236](index=236&type=chunk) - JBT expects to convert **93% of the December 31, 2023, backlog** into revenue during 2024[236](index=236&type=chunk) [7.8 Seasonality](index=56&type=section&id=7.8%20Seasonality) JBT experiences seasonality, with revenue and operating income typically lower in the first quarter and highest in the fourth quarter due to customer purchasing trends - JBT experiences seasonality, with revenue and operating income generally lower in the first quarter and highest in the fourth quarter, primarily due to customer purchasing trends[237](index=237&type=chunk) [7.9 Liquidity and Capital Resources](index=57&type=section&id=7.9%20Liquidity%20and%20Capital%20Resources) JBT maintains strong liquidity through operating cash flows, credit facilities, and proceeds from the AeroTech sale, used for debt repayment and potential acquisitions - Primary liquidity sources include operating cash flows, revolving credit facility borrowings, and proceeds from convertible notes and the AeroTech sale[238](index=238&type=chunk) - Proceeds from the AeroTech sale (**$808.2 million**) were used to repay **$305.4 million of debt**, cover transaction costs and taxes, and contribute to the U.S. pension plan, with remaining funds for potential acquisitions[238](index=238&type=chunk) - As of December 31, 2023, JBT had **$483.3 million in cash and cash equivalents**, with total liquidity (cash plus borrowing ability) of **$1.2 billion**[239](index=239&type=chunk)[241](index=241&type=chunk) [7.10 Contractual Obligations and Cash Requirements](index=57&type=section&id=7.10%20Contractual%20Obligations%20and%20Cash%20Requirements) This section outlines JBT's contractual and other obligations, including long-term debt, interest payments, operating leases, and off-balance sheet arrangements Summary of Contractual and Other Obligations (as of December 31, 2023, in millions) | (In millions) | Total | Current | Long-Term | | :-------------------------------- | :------ | :------ | :-------- | | Long-term debt | $646.4 | $— | $646.4 | | Interest payments on long-term debt | 15.9 | 5.6 | 10.3 | | Operating leases | 44.1 | 13.8 | 30.3 | | **Total contractual and other obligations** | **$706.4** | **$19.4** | **$687.0** | Summary of Other Off-Balance Sheet Arrangements (as of December 31, 2023, in millions) | (In millions) | Amount | Current | Long-Term | | :-------------------------------- | :------ | :------ | :-------- | | Letters of credit and bank guarantees | $25.1 | $24.4 | $0.7 | | Surety bonds | 1.0 | 0.9 | 0.1 | | **Total other off-balance sheet arrangements** | **$26.1** | **$25.3** | **$0.8** | - JBT also has outstanding firm purchase orders for raw materials and services, generally short-term, which will be reflected in cost of sales[247](index=247&type=chunk) [7.11 Cash Flows](index=59&type=section&id=7.11%20Cash%20Flows) This section presents JBT's cash flows from continuing operations, highlighting changes in operating, investing, and financing activities Cash Flows from Continuing Operations (in millions) | (In millions) | 2023 | 2022 | 2021 | | :------------------------------------------ | :------ | :------- | :------- | | Cash provided by continuing operating activities | $74.2 | $135.2 | $174.9 | | Cash provided (required) by continuing investing activities | 729.3 | (413.2) | (270.5) | | Cash (required) provided by continuing financing activities | (354.1) | 270.6 | 80.8 | | Effect of foreign exchange rate changes on cash and cash equivalents | (1.2) | (2.5) | (2.3) | | Net increase (decrease) in cash from continuing operations | $448.2 | $(9.9) | $(17.1) | - Cash provided by continuing operating activities decreased by **$61.0 million in 2023** to **$74.2 million**, primarily due to **$133.2 million in tax payments** on the AeroTech sale gain[251](index=251&type=chunk) - Cash provided by continuing investing activities increased by **$1.1 billion in 2023** to **$729.3 million**, mainly from AeroTech sale proceeds and lower acquisition/capital expenditure spending[252](index=252&type=chunk) [7.12 Financing Arrangements](index=60&type=section&id=7.12%20Financing%20Arrangements) JBT's financing includes a revolving credit facility and convertible senior notes, with interest rate swaps used to manage variable-rate debt exposure - As of December 31, 2023, JBT had **$250.0 million drawn** on its **$1.3 billion revolving credit facility**, with **$1,043.8 million of availability**, subject to leverage ratio covenants[257](index=257&type=chunk)[390](index=390&type=chunk) - The company issued **$402.5 million in 0.25% Convertible Senior Notes due 2026**, with an initial conversion price of **$169.61 per share**, and entered into convertible note hedge and warrant transactions[259](index=259&type=chunk)[393](index=393&type=chunk)[394](index=394&type=chunk)[401](index=401&type=chunk)[404](index=404&type=chunk) - JBT uses interest rate swaps to fix interest rates on variable-rate debt, effectively making all **$652.5 million of outstanding debt fixed-rate** as of December 31, 2023[261](index=261&type=chunk)[262](index=262&type=chunk) [7.13 Critical Accounting Estimates](index=60&type=section&id=7.13%20Critical%20Accounting%20Estimates) JBT's critical accounting estimates include revenue recognition for customized equipment and defined benefit pension plan costs, both relying on significant management judgment - Revenue recognition for customized equipment and refurbishments is primarily over time using the 'cost-to-cost' input method, requiring estimates of future labor and material costs[264](index=264&type=chunk) - Defined benefit pension plan costs rely on actuarial assumptions for discount rates, investment returns, and other factors, which are reviewed annually and can significantly impact operating results and the projected benefit obligation[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk) [7.14 Recent Accounting Pronouncements](index=61&type=section&id=7.14%20Recent%20Accounting%20Pronouncements) JBT adopted ASU 2020-04 (Reference Rate Reform) in 2023, applying practical expedients for debt and interest rate swap arrangements - JBT adopted ASU 2020-04 (Reference Rate Reform) in 2023, applying the practical expedient for debt and interest rate swap arrangements, treating amendments as a continuation of existing agreements[269](index=269&type=chunk) [Item 7A. Qualitative and Quantitative Disclosures About Market Risk](index=61&type=section&id=Item%207A.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) JBT manages foreign currency and interest rate risks using derivative financial instruments, with hedging policies in place to reduce volatility - JBT is exposed to financial market risks, including fluctuations in foreign currency exchange rates and interest rates, and may use derivative financial instruments to manage these exposures[270](index=270&type=chunk) - Foreign currency exchange rate risk stems from **43% of 2023 revenue** generated by foreign subsidiaries and transactions denominated in non-functional currencies; hedging policies reduce, but do not eliminate, this impact[272](index=272&type=chunk)[273](index=273&type=chunk) - Interest rate risk is managed through interest rate swaps that fix variable-rate debt, with a sensitivity analysis showing a **$1.4 million decrease in fair value** for a **50 basis point adverse movement**[276](index=276&type=chunk) [7A.1 Foreign Currency Exchange Rate Risk](index=61&type=section&id=7A.1%20Foreign%20Currency%20Exchange%20Rate%20Risk) JBT manages foreign currency translation and transaction risks through hedging policies and foreign exchange forward instruments to reduce volatility - JBT is exposed to foreign currency translation risk because **43% of its 2023 revenue** was generated by foreign subsidiaries whose financial statements are translated into U.S. dollars[272](index=272&type=chunk) - Foreign currency transaction risk arises from sales and purchases denominated in currencies other than an operation's functional currency, which JBT economically hedges using foreign exchange forward instruments[273](index=273&type=chunk)[274](index=274&type=chunk) - A **10% adverse movement in foreign currency exchange rates** would reduce the value of JBT's derivative instruments by **$7.4 million (pre-tax)** as of December 31, 2023, largely offset by changes in underlying hedged assets/liabilities[275](index=275&type=chunk) [7A.2 Market Risk and Interest Rate Risk](index=62&type=section&id=7A.2%20Market%20Risk%20and%20Interest%20Rate%20Risk) JBT uses interest rate swaps to manage variable-rate debt, and its convertible notes are subject to market and common stock price volatility - JBT had four interest rate swaps with a combined notional amount of **$200 million** expiring in April 2025, and one for **$50 million** expiring in May 2025, designated as cash flow hedges[276](index=276&type=chunk) - A sensitivity analysis indicates a **50 basis point adverse movement in interest rates** would decrease the net fair value of these swaps by **$1.4 million**[276](index=276&type=chunk) - The **$402.5 million Convertible Senior Notes due 2026** have a fixed annual rate of **0.25%**, so JBT does not have economic interest rate exposure on them, though their fair value is subject to market risk and common stock price volatility[277](index=277&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=63&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents JBT Corporation's audited consolidated financial statements for 2023, 2022, and 2021, with an unqualified opinion from PricewaterhouseCoopers LLP - PricewaterhouseCoopers LLP issued an unqualified opinion on JBT's consolidated financial statements and the effectiveness of its internal control over financial reporting as of December 31, 2023[279](index=279&type=chunk)[280](index=280&type=chunk) - JBT changed its inventory valuation methodology from LIFO to FIFO in the fourth quarter of 2023, retrospectively applying the change to all presented periods, resulting in a cumulative effect adjustment to increase the January 1, 2021 inventory balance by **$19.4 million** and retained earnings by **$35.3 million**, net of tax[284](index=284&type=chunk)[315](index=315&type=chunk)[316](index=316&type=chunk) - A critical audit matter identified was revenue recognition for product revenue estimated costs at completion, due to significant management judgment and auditor effort in evaluating assumptions for labor and material costs on over-time contracts[288](index=288&type=chunk)[289](index=289&type=chunk) [8.1 Report of Independent Registered Public Accounting Firm](index=63&type=section&id=8.1%20Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion on JBT's consolidated financial statements and the effectiveness of its internal control over financial reporting - PricewaterhouseCoopers LLP audited JBT's consolidated financial statements for the three years ended December 31, 2023, and internal control over financial reporting as of December 31, 2023[279](index=279&type=chunk) - The firm issued an unqualified opinion, stating that the financial statements present fairly, in all material respects, JBT's financial position, results of operations, and cash flows in conformity with U.S. GAAP[280](index=280&type=chunk) - PwC also opined that JBT maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023[280](index=280&type=chunk) [8.2 Change in Accounting Principle](index=63&type=section&id=8.2%20Change%20in%20Accounting%20Principle) JBT retrospectively changed its inventory valuation methodology from LIFO to FIFO in 2023 to improve cost-revenue matching and comparability - JBT changed its methodology for valuing certain inventories from the last-in, first-out (LIFO) cost method to the first-in, first-out (FIFO) cost method in 2023[284](index=284&type=chunk) - This change was retrospectively applied to all periods presented in the consolidated financial statements[284](index=284&type=chunk) [8.3 Definition and Limitations of Internal Control over Financial Reporting](index=63&type=section&id=8.3%20Definition%20and%20Limitations%20of%20Internal%20Control%20over%20Financial%20Reporting) Internal control over financial reporting provides reasonable assurance for reliable financial reporting, but has inherent limitations that may prevent detection of all misstatements - Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP[285](index=285&type=chunk) - Due to inherent limitations, internal control may not prevent or detect all misstatements, and projections of effectiveness to future periods are subject to risks of inadequacy or deterioration[286](index=286&type=chunk) [8.4 Critical Audit Matters](index=64&type=section&id=8.4%20Critical%20Audit%20Matters) A critical audit matter involved revenue recognition for product revenue estimated costs at completion, requiring significant management and auditor judgment - A critical audit matter identified was revenue recognition related to product revenue estimated costs at completion for over-time projects, which amounted to **$615.2 million in 2023**[288](index=288&type=chunk) - This matter involved significant management judgment in determining estimated costs at completion and a high degree of auditor judgment in evaluating assumptions for labor and material costs[289](index=289&type=chunk) - Audit procedures included testing controls, evaluating management's estimation process, assessing reasonableness of assumptions, and comparing estimated costs to actual costs on similar contracts[290](index=290&type=chunk) [8.5 Consolidated Statements of Income](index=65&type=section&id=8.5%20Consolidated%20Statements%20of%20Income) This section presents JBT's consolidated statements of income, including total revenue, operating income, net income, and basic/diluted earnings per share Consolidated Statements of Income (in millions, except per share data) | (In millions, except per share data) | 2023 | 2022 | 2021 | | :----------------------------------- | :------ | :------ | :------ | | Total revenue | $1,664.4 | $1,590.3 | $1,400.8 | | Operating income | 164.7 | 132.6 | 125.6 | | Net income before income taxes | 153.1 | 120.0 | 119.5 | | Income from continuing operations | 129.3 | 103.8 | 92.5 | | Income from discontinued operations, net of taxes | 453.3 | 33.6 | 26.6 | | Net income | $582.6 | $137.4 | $119.1 | | Basic earnings per share: | | | | | Income from continuing operations | $4.04 | $3.24 | $2.89 | | Income from discontinued operations | 14.17 | 1.05 | 0.83 | | Net income | $18.21 | $4.29 | $3.72 | | Diluted earnings per share: | | | | | Income from continuing operations | $4.02 | $3.23 | $2.88 | | Income from discontinued operations | 14.11 | 1.05 | 0.83 | | Net income | $18.13 | $4.28 | $3.71 | [8.6 Consolidated Statements of Comprehensive Income](index=66&type=section&id=8.6%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents JBT's consolidated statements of comprehensive income, detailing net income and other comprehensive income (loss) components Consolidated Statements of Comprehensive Income (in millions) | (In millions) | 2023 | 2022 | 2021 | | :------------------------------------------ | :------ | :------ | :------ | | Net income | $582.6 | $137.4 | $119.1 | | Other comprehensive income (loss), net of income taxes: | | | | | Foreign currency translation adjustments | 15.9 | (34.5) | 1.0 | | Pension and other post-retirement benefits adjustments | (1.8) | 14.6 | 15.9 | | Derivatives designated as hedges | (5.6) | 13.0 | 5.6 | | Other comprehensive income (loss) | 8.5 | (6.9) | 22.5 | | Comprehensive income | $591.1 | $130.5 | $141.6 | [8.7 Consolidated Balance Sheets](index=67&type=section&id=8.7%20Consolidated%20Balance%20Sheets) This section presents JBT's consolidated balance sheets, detailing assets, liabilities, and stockholders' equity as of December 31, 2023 and 2022 Consolidated Balance Sheets (in millions) | (In millions) | December 31, 2023 | December 31, 2022 | | :------------------------------------------ | :---------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $483.3 | $71.7 | | Total current assets | 1,100.2 | 926.5 | | Property, plant and equipment, net | 248.0 | 245.4 | | Goodwill | 779.5 | 770.1 | | Intangible assets, net | 388.9 | 430.1 | | Total Assets | $2,710.4 | $2,641.0 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $484.4 | $624.0 | | Long-term debt | 646.4 | 977.3 | | Total Liabilities and Stockholders' Equity | $2,710.4 | $2,641.0 | [8.8 Consolidated Statements of Cash Flows](index=68&type=section&id=8.8%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents JBT's consolidated statements of cash flows, detailing cash provided by operating, investing, and financing activities Consolidated Statements of Cash Flows (in millions) | (In millions) | 2023 | 2022 | 2021 | | :------------------------------------------ | :------ | :------- | :------- | | Cash provided by continuing operating activities | $74.2 | $135.2 | $174.9 | | Cash provided (required) by continuing investing activities | 729.3 | (413.2) | (270.5) | | Cash (required) provided by continuing financing activities | (354.1) | 270.6 | 80.8 | | Net increase (decrease) in cash from continuing operations | 449.4 | (7.4) | (14.8) | | Net cash (required) provided by discontinued operations | (38.0) | 4.2 | 48.4 | | Net increase (decrease) in cash and cash equivalents | $410.2 | $(5.7) | $31.3 | [8.9 Consolidated Statements of Changes in Stockholders' Equity](index=71&type=section&id=8.9%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section presents JBT's consolidated statements of changes in stockholders' equity, detailing movements in common stock, retained earnings, and comprehensive income Consolidated Statements of Changes in Stockholders' Equity (in millions) | (In millions) | Common Stock | Common Stock Held in Treasury | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | | :-------------------------------- | :----------- | :---------------------------- | :------------------------- | :---------------- | :-------------------------------------------- | :----------- | | Balance as of December 31, 2020 | $0.3 | $(1.0) | $229.9 | $663.1 | $(219.9) | $672.4 | | Net income | — | — | — | 119.1 | — | 119.1 | | Balance as of December 31, 2021 | 0.3 | — | 214.2 | 769.4 | (197.4) | 786.5 | | Net income | — | — | — | 137.4 | — | 137.4 | | Balance as of December 31, 2022 | 0.3 | (5.3) | 220.7 | 894.0 | (204.3) | 905.4 | | Net income | — | — | — | 582.6 | — | 582.6 | | Balance as of December 31, 2023 | $0.3 | $(7.1) | $227.9 | $1,463.6 | $(195.8) | $1,488.9 | [8.10 Notes to Consolidated Financial Statements](index=72&type=section&id=8.10%20Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes to JBT's consolidated financial statements, covering significant accounting policies, discontinued operations, acquisitions, and other financial disclosures [8.10.1 Note 1. Summary of Significant Accounting Policies](index=72&type=section&id=8.10.1%20Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines JBT's key accounting policies, including consolidation, discontinued operations, segment reporting, inventory valuation, and revenue recognition - JBT's consolidated financial statements include all wholly-owned subsidiaries, with intercompany transactions eliminated[307](index=307&type=chunk) - The AeroTech business segment's financial results are presented as discontinued operations following its sale on August 1, 2023[308](index=308&type=chunk) - JBT operates as a single reportable segment for continuing operations, with the CEO as the chief operating decision maker, evaluating performance based on Adjusted EBITDA[309](index=309&type=chunk) - In Q4 2023, JBT changed its inventory valuation from LIFO to FIFO, retrospectively applying the change to improve cost-revenue matching and comparability with peers[315](index=315&type=chunk)[316](index=316&type=chunk) - Revenue is recognized when performance obligations are satisfied, with product revenue for customized equipment recognized over time using the 'cost-to-cost' input method[337](index=337&type=chunk)[341](index=341&type=chunk)[342](index=342&type=chunk) [8.10.2 Note 2. Discontinued Operations](index=82&type=section&id=8.10.2%20Note%202.%20Discontinued%20Operations) This note details the sale of JBT's AeroTech business segment in 2023, its strategic rationale, and summarized financial information for discontinued operations - On August 1, 2023, JBT completed the sale of its AeroTech business segment for **$808.2 million in cash**, recognizing a gain of **$443.7 million**, net of **$131.4 million in income taxes**[373](index=373&type=chunk) - The sale supports JBT's strategy to become a pure-play food and beverage solutions provider[373](index=373&type=chunk) Summarized Discontinued Operations Financial Information (in millions) | (In millions) | 2023 | 2022 | 2021 | | :------------------------------------------ | :------ | :------ | :------ | | Revenue | $344.1 | $575.7 | $467.5 | | Operating income | 13.5 | 44.8 | 35.5 | | Gain on sale of AeroTech | 557.2 | — | — | | Income from discontinued operations, net of taxes | $453.3 | $33.6 | $26.6 | [8.10.3 Note 3. Acquisitions](index=85&type=section&id=8.10.3%20Note%203.%20Acquisitions) This note details JBT's 2022 acquisitions of Bevcorp and Alco-food-machines, which expanded its presence in beverage and further food processing solutions - JBT made two acquisitions in 2022: Bevcorp, a beverage processing and packaging solutions provider, and Alco-food-machines GmbH & Co. KG, a provider of further food processing equipment[379](index=379&type=chunk) - These acquisitions expanded JBT's presence in carbonated beverage production and strengthened its further processing offerings[379](index=379&type=chunk) Summary of 2022 Acquisitions (in millions) | (In millions) | Bevcorp | Alco | Total | | :---------------------------- | :------ | :------ | :------ | | Financial assets | $20.8 | $9.1 | $29.9 | | Inventories | 33.1 | 11.7 | 44.8 | | Property, plant and equipment | 5.5 | 0.9 | 6.4 | | Customer relationship | 127.0 | 9.2 | 136.2 | | Patents and acquired technology | 3.8 | 4.7 | 8.5 | | Trademarks | 10.0 | 3.2 | 13.2 | | Financial liabilities | (18.7) | (19.9) | (38.6) | | Total identifiable net assets | $181.5 | $18.9 | $200.4 | | Cash consideration paid | $294.9 | $44.0 | $338.9 | | Net consideration | $289.2 | $40.1 | $329.3 | | Goodwill | $113.4 | $25.1 | $138.5 | [8.10.4 Note 4. Inventories](index=86&type=section&id=8.10.4%20Note%204.%20Inventories) This note provides a breakdown of JBT's inventories, including raw materials, work in process, and finished goods, as of December 31, 2023 and 2022 Inventories (as of December 31, in millions) | (In millions) | 2023 | 2022 | | :---------------------------------- | :------ | :------ | | Raw materials | $28.7 | $33.6 | | Work in process | 48.1 | 54.6 | | Finished goods | 181.8 | 195.0 | | Gross inventories before valuation adjustments | 258.6 | 283.2 | | Valuation adjustments | (19.7) | (19.2) | | Net inventories | $238.9 | $264.0 | [8.10.5 Note 5. Property, Plant and Equipment](index=86&type=section&id=8.10.5%20Note%205.%20Property%2C%20Plant%20and%20Equipment) This note details JBT's property, plant, and equipment, net of accumulated depreciation, as of December 31, 2023 and 2022 Property, Plant and Equipment, Net (as of December 31, in millions) | (In millions) | 2023 | 2022 | | :-------------------------------- | :------ | :------ | | Land and land improvements | $15.2 | $14.9 | | Buildings | 119.6 | 113.1 | | Machinery and equipment | 408.3 | 401.3 | | Construction in process | 21.6 | 22.1 | | Total gross PP&E | 564.7 | 551.4 | | Accumulated depreciation | (316.7) | (306.0) | | Property, plant and equipment, net | $248.0 | $245.4 | [8.10.6 Note 6. Other Assets](index=86&type=section&id=8.10.6%20Note%206.%20Other%20Assets) This note provides a breakdown of JBT's other assets, including capitalized software and cloud computing arrangement implementation costs, as of December 31, 2023 and 2022 Other Assets (as of December 31, in millions) | (In millions) | 2023 Carrying Amount | 2023 Accumulated Amortization | 2022 Carrying Amount | 2022 Accumulated Amortization | | :-------------------------------------- | :------------------- | :---------------------------- | :------------------- | :---------------------------- | | Capitalized software | $119.0 | $49.9 | $120.7 | $34.9 | | Cloud computing arrangement implementation costs | 31.6 | 9.4 | 11.8 | 4.8 | | Other | 102.5 | — | 90.3 | — | | Total other assets | $253.1 | $59.3 | $222.8 | $39.7 | - Capitalized software amortization expense was **$14.4 million in 2023**, up from **$4.5 million in 2022** and **$3.7 million in 2021**[385](index=385&type=chunk) [8.10.7 Note 7. Goodwill and Intangible Assets](index=87&type=section&id=8.10.7%20Note%207.%20Goodwill%20and%20Intangible%20Assets) This note details changes in JBT's goodwill carrying amount and provides a breakdown of intangible assets, including customer relationships, patents, and trademarks Changes in Carrying Amount of Goodwill (in millions) | (In millions) | Amount | | :---------------------------- | :------ | | Balance as of January 1, 2022 | $646.7 | | Acquisitions | 141.0 | | Currency translation | (17.6) | | Balance as of December 31, 2022 | 770.1 | | Acquisitions | (1.0) | | Currency translation | 10.4 | | Balance as of December 31, 2023 | $779.5 | Intangible Assets (as of December 31, in millions) | (In millions) | 2023 Carrying Amount | 2023 Accumulated Amortization | 2022 Carrying Amount | 2022 Accumulated Amortization | | :---------------------------- | :------------------- | :---------------------------- | :------------------- | :---------------------------- | | Customer relationships | $424.6 | $148.0 | $420.8 | $118.6 | | Patents and acquired technology | 173.3 | 109.1 | 169.6 | 90.6 | | Trademarks | 54.3 | 16.7 | 53.1 | 14.6 | | Indefinite lived intangibles assets | 10.5 | — | 10.4 | — | | Other | 8.8 | 8.8 | 8.6 | 8.6 | | Total intangible assets | $671.5 | $282.6 | $662.5 | $232.4 | - Intangible asset amortization expense was **$46.1 million in 2023**, **$41.1 million in 2022**, and **$36.7 million in 2021**[386](index=386&type=chunk) [8.10.8 Note 8. Debt](index=87&type=section&id=8.10.8%20Note%208.%20Debt) This note details JBT's debt components, including its revolving credit facility and convertible senior notes, as of December 31, 2023 and 2022 Components of Borrowings (as of December 31, in millions) | (In millions) | Maturity Date | 2023 | 2022 | | :---------------------------- | :--------------- | :------ | :------ | | Revolving credit facility, net | December 14, 2026 | $249.2 | $582.4 | | Convertible senior notes, net | May 15, 2026 | 397.2 | 394.9 | | Long-term debt, net | | $646.4 | $977.3 | - JBT's revolving credit facility has a **$1.3 billion borrowing limit**, maturing in December 2026, with **$250.0 million drawn** and **$1,043.8 million available** as of December 31, 2023[389](index=389&type=chunk)[390](index=390&type=chunk) - The company issued **$402.5 million in 0.25% Convertible Senior Notes due 2026**, with an initial conversion rate of **5.8958 shares per $1,000 principal amount**, and concurrently entered into convertible note hedge and warrant transactions[393](index=393&type=chunk)[394](index=394&type=chunk)[401](index=401&type=chunk)[404](index=404&type=chunk) [8.10.9 Note 9. Income Taxes](index=90&type=section&id=8.10.9%20Note%209.%20Income%20Taxes) This note provides a breakdown of JBT's income from continuing operations before taxes, provision for income taxes, and the effective income tax rate reconciliation Income from Continuing Operations Before Income Taxes (in millions) | (In millions) | 2023 | 2022 | 2021 | | :------------------------ | :------ | :------ | :------ | | Domestic | $65.8 | $46.6 | $40.4 | | Foreign | 87.3 | 73.4 | 79.1 | | Income before income taxes | $153.1 | $120.0 | $119.5 | Provision for Income Taxes (in millions) | (In millions) | 2023 | 2022 | 2021 | | :------------------------ | :------ | :------ | :------ | | Total current | $45.1 | $35.3 | $30.2 | | Total deferred | (21.6) | (19.1) | (3.2) | | Provision for income taxes | $23.5 | $16.2 | $27.0 | Effective Income Tax Rate Reconciliation | | 2023 | 2022 | 2021 | | :------------------------ | :--- | :--- | :--- | | Statutory U.S. federal tax rate | 21% | 21% | 21% | | Total difference | (6)% | (7)% | 2% | | Effective income tax rate | 15% | 14% | 23% | [8.10.10 Note 10. Pension and Post-Retirement and Other Benefit Plans](index=92&type=section&id=8.10.10%20Note%2010.%20Pension%20and%20Post-Retirement%20and%20Other%20Benefit%20Plans) This note details the funded status of JBT's pension plans and pension costs, along with expected contributions for 2024 Funded Status of Pension Plans (in millions) | (In millions) | 2023 | 2022 | | :-------------------------------------- | :------ | :------ | | Projected benefit obligation at December 31 | $274.1 | $269.2 | | Fair value of plan assets at December 31 | 249.9 | 237.7 | | Funded status of the plans (liability) at December 31 | $(24.2) | $(31.5) | Pension Costs (Income) (in millions) | (In millions) | 2023 | 2022 | 2021 | | :---------------------------- | :----- | :----- | :----- | | Service cost | $1.1 | $1.7 | $2.2 | | Interest cost | 12.8 | 7.4 | 6.4 | | Expected return on plan assets | (17.1) | (15.7) | (15.6) | | Amortization of net actuarial loss | 5.0 | 8.0 | 7.7 | | Total costs | $1.8 | $1.6 | $0.8 | - JBT expects to contribute **$3.5 million** to its pension and other post-retirement benefit plans in 2024, primarily for non-U.S. pension plans[426](index=426&type=chunk) [8.10.11 Note 11. Accumulated Other Comprehensive Income (Loss)](index=96&type=section&id=8.10.11%20Note%2011.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) This note details changes in JBT's accumulated other comprehensive income (loss) by component, including pension adjustments, derivatives, and foreign currency translation Changes in Accumulated Other Comprehensive Income (Loss) by Component (in millions, net of tax) | (In millions) | Pension and Other Post-retirement Benefits | Derivatives Designated as Hedges | Foreign Currency Translation | Total | | :-------------------------------- | :----------------------------------------- | :------------------------------- | :--------------------------- | :------- | | Balance as of January 1, 2022 | $(145.5) | $1.8 | $(53.7) | $(197.4) | | Other comprehensive income (loss) before reclassification | 8.5 | 14.7 | (36.7) | (13.5) | | Amounts reclassified from AOCI | 6.1 | (1.7) | 2.2 | 6.6 | | Balance as of December 31, 2022 | $(130.9) | $14.8 | $(88.2) | $(204.3) | | Other comprehensive income (loss) before reclassification | (5.5) | 2.4 | 17.0 | 13.9 | | Amounts reclassified from AOCI | 3.7 | (8.0) | (1.1) | (5.4) | | Balance as of December 31, 2023 | $(132.7) | $9.2 | $(72.3) | $(195.8) | - AOCI is composed of adjustments related to pension and other post-retirement benefits plans, derivatives designated as hedges, and foreign currency translation adjustments[430](index=430&type=chunk) [8.10.12 Note 12. Stock-Based Compensation](index=9

2 Forward-Looking and Non-GAAP Statements These slides and the accompanying presentation (collectively, the "presentation") contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond JBT's ability to control. These forward-looking statements include, among others, statements relating to our business and our results of operations, a poten ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q | ☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | --- | --- | | | For the quarterly period ended September 30, 2023 or | | ☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | | For the transition period from ______ to ______ | Commission File Number 1-34036 John Bean Technologies Corporation (Exact name of registrant as specified in it ...

2 10 Q3 2023 (1) As of Q3 2023, this balance includes Cash of $401.7 million and Marketable securities of $125.0 million. Recurring vs. Non-recurring Revenue Recurring(1) $ 202.7 $ 639.1 (1) Aftermarket parts and services and revenue from lease and long-term service contracts are considered recurring revenue. Non-recurring revenue includes new equipment and installation. (2) M&A related costs are estimated to be $0 to $1 million and approximately $4 million for the fourth quarter and full year 2023, respect ...