MANITOWOC CO INC, 10-K filed on 2/12/2021
Annual Report
v3.20.4
Document and Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Jan. 31, 2021
Jun. 30, 2020
Cover [Abstract]      
Entity Registrant Name The Manitowoc Company, Inc.    
Entity Central Index Key 0000061986    
Trading Symbol MTW    
Document Type 10-K    
Document Period End Date Dec. 31, 2020    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
ICFR Auditor Attestation Flag true    
Entity Public Float     $ 367.3
Entity Shares Outstanding   34,580,888  
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Entity File Number 1-11978    
Entity Tax Identification Number 39-0448110    
Entity Address, Address Line One 11270 West Park Place    
Entity Address, Address Line Two Suite 1000    
Entity Address, City or Town Milwaukee    
Entity Address, State or Province WI    
Entity Address, Postal Zip Code 53224    
City Area Code 414    
Local Phone Number 760-4600    
Entity Incorporation, State or Country Code WI    
Title of 12(b) Security Common Stock, $.01 Par Value    
Security Exchange Name NYSE    
Entity Interactive Data Current Yes    
Document Annual Report true    
Document Transition Report false    
Documents Incorporated by Reference

Portions of the registrant’s Proxy Statement for the 2021 Annual Meeting of Shareholders, are incorporated by reference in Part III of this Annual Report on Form 10-K.

 

 

   
v3.20.4
Consolidated Statements of Operations - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Statement [Abstract]      
Net sales $ 1,443.4 $ 1,834.1 $ 1,846.8
Cost of sales 1,188.7 1,490.0 1,518.7
Gross profit 254.7 344.1 328.1
Operating costs and expenses:      
Engineering, selling and administrative expenses 208.8 225.6 251.6
Asset impairment expense 0.0 0.0 82.6
Amortization of intangible assets 0.3 0.3 0.3
Restructuring expense 7.0 9.8 12.9
Total operating costs and expenses 216.1 235.7 347.4
Operating income (loss) 38.6 108.4 (19.3)
Other income (expense):      
Interest expense (29.1) (32.7) (39.1)
Amortization of deferred financing fees (1.5) (1.5) (1.8)
Loss on debt extinguishment 0.0 (25.0) 0.0
Other income (expense) — net (10.0) 9.8 (11.5)
Total other expense (40.6) (49.4) (52.4)
Income (loss) from continuing operations before income taxes (2.0) 59.0 (71.7)
Provision (benefit) for income taxes 17.1 12.4 (4.8)
Net income (loss) from continuing operations (19.1) 46.6 (66.9)
Discontinued operations:      
Loss from discontinued operations, net of income taxes of $0.0, $0.0 and $0.0, respectively 0.0 0.0 (0.2)
Net income (loss) $ (19.1) $ 46.6 $ (67.1)
Basic net income (loss) per common share:      
Net income (loss) from continuing operations $ (0.55) $ 1.31 $ (1.88)
Loss from discontinued operations 0 0 (0.01)
Basic net income (loss) per share (0.55) 1.31 (1.89)
Diluted net income (loss) per common share:      
Net income (loss) from continuing operations (0.55) 1.31 (1.88)
Loss from discontinued operations 0 0 (0.01)
Diluted net income (loss) per share $ (0.55) $ 1.31 $ (1.89)
v3.20.4
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Statement [Abstract]      
Loss from discontinued operations, income taxes $ 0.0 $ 0.0 $ 0.0
v3.20.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]      
Net income (loss) $ (19.1) $ 46.6 $ (67.1)
Other comprehensive income (loss), net of income tax:      
Unrealized gains (losses) on derivatives, net of income tax   0.3 (0.4)
Employee pension and postretirement benefit income (expense), net of income tax 8.0 3.7 (8.9)
Foreign currency translation adjustments 31.5 (1.0) (27.7)
Total other comprehensive income (loss), net of income tax 23.5 (4.4) (19.2)
Comprehensive income (loss) $ 4.4 $ 42.2 $ (86.3)
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Current Assets:    
Cash and cash equivalents $ 128.7 $ 199.3
Accounts receivable, less allowances of $8.5 and $7.9, respectively 215.1 168.3
Inventories — net 473.1 461.4
Notes receivable — net 13.6 17.4
Other current assets 35.5 26.0
Total current assets 866.0 872.4
Property, plant and equipment — net 294.3 289.9
Operating lease right-of-use assets 37.9 47.6
Goodwill 235.1 232.5
Other intangible assets — net 121.6 116.3
Other non-current assets 48.6 59.0
Total assets 1,603.5 1,617.7
Current Liabilities:    
Accounts payable and accrued expenses 329.4 340.8
Short-term borrowings and current portion of long-term debt 10.5 3.8
Product warranties 50.2 47.2
Customer advances 25.5 25.8
Other liabilities 20.2 23.3
Total current liabilities 435.8 440.9
Non-Current Liabilities:    
Long-term debt 300.4 308.4
Operating lease liabilities 28.4 37.6
Deferred income taxes 5.9 5.5
Pension obligations 89.3 86.4
Postretirement health and other benefit obligations 14.0 16.4
Long-term deferred revenue 32.4 30.3
Other non-current liabilities 53.8 46.3
Total non-current liabilities 524.2 530.9
Commitments and contingencies (Note 18)
Total stockholders' equity:    
Preferred stock (3,500,000 shares authorized of $.01 par value; none outstanding)
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 34,580,638 and 35,374,537 shares outstanding, respectively) 0.4 0.4
Additional paid-in capital 595.1 592.2
Accumulated other comprehensive loss (97.5) (121.0)
Retained earnings 216.9 236.2
Treasury stock, at cost (6,213,345 and 5,419,446 shares, respectively) (71.4) (61.9)
Total stockholders’ equity 643.5 645.9
Total liabilities and stockholders' equity $ 1,603.5 $ 1,617.7
v3.20.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Statement Of Financial Position [Abstract]    
Accounts Receivable, allowances (in dollars) $ 8.5 $ 7.9
Preferred stock authorized (in shares) 3,500,000 3,500,000
Par value of preferred stock per share (in dollars per share) $ 0.01 $ 0.01
Preferred stock outstanding (in shares) 0 0
Common stock, shares authorized (in shares) 75,000,000 75,000,000
Common stock, shares issued (in shares) 40,793,983 40,793,983
Common stock, shares outstanding (in shares) 34,580,638 35,374,537
Treasury stock (in shares) 6,213,345 5,419,446
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash Flows From Operating Activities      
Net income (loss) $ (19.1) $ 46.6 $ (67.1)
Adjustments to reconcile net income (loss) to cash used for operating activities of continuing operations:      
Asset impairment expense 0.0 0.0 82.6
Loss from discontinued operations, net of income taxes     0.2
Depreciation expense 37.2 35.0 36.1
Amortization of intangible assets 0.3 0.3 0.3
Amortization of deferred financing fees 1.5 1.5 1.8
Deferred income tax (benefit) - net 4.8 1.5 (11.1)
Loss on early extinguishment of debt 0.0 25.0 0.0
Loss (gain) on sale of property, plant and equipment   (3.5) 0.9
Stock-based compensation expense and other 6.5 10.1 7.4
Changes in operating assets and liabilities, excluding the effects of business divestitures:      
Accounts receivable (37.7) (124.2) (553.4)
Inventories 8.3 (18.3) (72.7)
Notes receivable 7.4 2.9 18.6
Other assets (3.5) 23.9 2.7
Accounts payable (20.1) (59.7) 56.5
Accrued expenses and other liabilities (20.7) 5.6 (15.6)
Net cash used for operating activities of continuing operations (35.1) (53.3) (512.8)
Net cash used for operating activities of discontinued operations     (0.2)
Net cash used for operating activities (35.1) (53.3) (513.0)
Cash Flows From Investing Activities      
Capital expenditures (26.3) (35.1) (31.7)
Proceeds from sale of property, plant and equipment 0.5 17.2 13.0
Cash receipts on sold accounts receivable   126.3 553.1
Net cash provided by (used for) investing activities (25.8) 108.4 534.4
Cash Flows From Financing Activities      
Proceeds from revolving credit facility 50.0 139.7  
Payments on revolving credit facility (50.0) (139.7)  
Payments on long-term debt   (276.6) (3.8)
Proceeds from long-term debt   300.0  
Other debt - net (2.9) (4.4)  
Debt issuance costs   (8.3)  
Exercises of stock options including windfall tax benefits 0.1 0.4 2.5
Common stock repurchases (12.0) (7.4)  
Net cash provided by (used for) financing activities (14.8) 3.7 (1.3)
Effect of exchange rate changes on cash 5.1 0.2 (2.8)
Net increase (decrease) in cash and cash equivalents (70.6) 59.0 17.3
Cash and cash equivalents at beginning of period 199.3 140.3 123.0
Cash and cash equivalents at end of period 128.7 199.3 140.3
Supplemental Cash Flow Information      
Interest paid 28.8 36.0 36.8
Income taxes paid $ 13.6 $ 10.5 $ 2.6
v3.20.4
Consolidated Statements of Equity - USD ($)
$ in Millions
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Retained Earnings
Cumulative Effect Period Of Adoption Adjustment
Treasury Stock
Balance at beginning of year at Dec. 31, 2017   $ 0.4 $ 577.6 $ (97.4) $ 256.7   $ (59.8)
Increase (Decrease) in Stockholders' Equity              
Stock options exercised and issuance of other stock awards     (1.0)       2.9
Stock-based compensation     8.2        
Other comprehensive income (loss)       (19.2)      
Net income (loss) $ (67.1)       (67.1)    
Balance at end of year at Dec. 31, 2018 601.3 0.4 584.8 (116.6) 189.6   (56.9)
Increase (Decrease) in Stockholders' Equity              
Stock options exercised and issuance of other stock awards     (2.1)       2.4
Common stock repurchases             (7.4)
Stock-based compensation     9.5        
Other comprehensive income (loss)       (4.4)      
Net income (loss) 46.6       46.6    
Balance at end of year at Dec. 31, 2019 645.9 0.4 592.2 (121.0) 236.2 $ (0.2) (61.9)
Increase (Decrease) in Stockholders' Equity              
Stock options exercised and issuance of other stock awards     (3.1)       2.5
Common stock repurchases   12.0         (12.0)
Stock-based compensation     6.0        
Other comprehensive income (loss)       23.5      
Net income (loss) (19.1)       (19.1)    
Balance at end of year at Dec. 31, 2020 $ 643.5 $ 0.4 $ 595.1 $ (97.5) $ 216.9   $ (71.4)
v3.20.4
Company and Basis of Presentation
12 Months Ended
Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Company and Basis of Presentation

1. Company and Basis of Presentation

The Manitowoc Company, Inc. (“Manitowoc” and the “Company”) was founded in 1902 and has over a 118-year tradition of providing high-quality, customer-focused products and support services to its markets. Manitowoc is one of the world’s leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, and supports comprehensive product lines of mobile hydraulic cranes, tower cranes, lattice-boom crawler cranes, and boom trucks under the Grove, Manitowoc, National Crane, Potain and Shuttlelift brand names. The Company serves a wide variety of customers, including dealers, rental companies, contractors, and government entities, across the petrochemical, industrial, commercial construction, power and utilities, infrastructure and residential construction end markets. Additionally, the Company leverages its installed base of approximately 152,000 cranes to provide aftermarket parts and services to enable its customers to manage their fleets more effectively and improve their return on investment. Due to the ongoing and predictable maintenance needed by cranes, as well as the high cost of crane downtime, Manitowoc’s aftermarket support operations provide the Company with a consistent stream of recurring revenue. The Company also recently started to expand its tower crane rental fleet in Europe to directly serve its customers in the region. Manitowoc is a Wisconsin corporation and its principal executive offices are located at 11270 West Park Place Suite 1000, Milwaukee, Wisconsin 53224.

Basis of Presentation The consolidated financial statements include the accounts of The Manitowoc Company, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

All amounts, except share and per share amounts, are in millions throughout the tables in these notes unless otherwise indicated.

Impact of COVID-19 Pandemic

 

During 2020 and continuing into 2021, the Company has been, and continues to be, impacted by the COVID-19 pandemic. There is considerable uncertainty regarding the impact and duration of the COVID-19 pandemic in 2021 which could include additional or new restrictions on the Company’s access to its facilities or on its support operations or workforce, or similar limitations impacting its customers, dealers and suppliers. This uncertainty could have an impact in future periods on certain estimates used in the preparation of the Company’s year-end financial results, including, but not limited to, impairment of goodwill and other long-lived assets, income tax provision and recoverability of inventory.

v3.20.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Cash and Cash Equivalents The Company considers all cash and short-term investments purchased with an original maturity of three months or less as cash and cash equivalents.

Allowance for Doubtful Accounts Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. Our estimate for the allowance for doubtful accounts related to trade receivables includes evaluation of specific accounts where we have information that the customer may have an inability to meet its financial obligations together with a general provision for unknown but existing doubtful accounts based on historical experience, which are subject to change if experience improves or deteriorates.

Inventories Inventories are valued at the lower of cost or net realizable value. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. The Company determines inventory value using the first-in, first-out method.

Goodwill and Other Intangible Assets The Company accounts for goodwill and other intangible assets under the guidance of Accounting Standards Codification (“ASC”) Topic 350-10, “Intangibles — Goodwill and Other.” Under ASC Topic 350-10, goodwill is not amortized; instead, the Company performs an annual impairment review. The date for the annual impairment review is October 31, or more frequently if events or changes in circumstances indicate that the assets might be impaired. To test goodwill, the Company estimates the fair values of its reporting units using the income approach based on the present value of expected future cash flows, subject to a comparison for reasonableness to its market capitalization at the date of valuation. If the carrying amount exceeds the fair value, an impairment loss is recognized in an amount equal to that excess, not to exceed

the carrying amount of the goodwill. In addition, goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value.

The Company’s other intangible assets with indefinite lives, including trademarks and tradenames and distribution networks, are not amortized but are tested for impairment annually, or more frequently, as events dictate. For other indefinite lived intangible assets, the impairment test consists of a comparison of the fair value of the intangible assets to their carrying amount. See Note 9, “Goodwill and Other Intangible Assets,” for further details on our impairment assessments. The Company’s intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. 

The Company’s other intangible assets subject to amortization are amortized straight-line over the following estimated useful lives:

 

 

 

Useful lives

Patents

 

20 years

Customer relationships

 

20 years

 

Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and depreciated over the remaining estimated useful life. The cost and accumulated depreciation for property, plant and equipment sold, retired or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the asset’s estimated useful life using the straight-line depreciation method for financial reporting and accelerated methods for income tax purposes.

Property, plant and equipment are depreciated over the following estimated useful lives:

 

 

 

Years

Building and improvements

 

2 - 43

Machinery, equipment and tooling

 

3 - 18

Furniture and fixtures

 

3 - 10

Computer hardware and software

 

2 - 10

Rental cranes

 

5 - 15

 

Property, plant and equipment also includes cranes accounted for as operating leases. Equipment accounted for as operating leases includes rental cranes leased directly to the customer and cranes for which the Company has assisted in the financing arrangement, whereby the Company has made a buyback commitment in which the customer at the time of the order had a significant economic incentive to exercise. Equipment that is leased directly to the customer is accounted for as an operating lease with the related assets capitalized and depreciated over their estimated economic life. Equipment involved in a financing arrangement is depreciated over the life of the underlying arrangement to the buyback amount at the end of the lease period. The amount of buyback and rental equipment included in property, plant and equipment amounted to $59.9 million and $51.2 million, net of accumulated depreciation, as of December 31, 2020 and 2019, respectively.

The Company reviews property, plant and equipment for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. The Company conducts its impairment analyses in accordance with ASC Topic 360-10-5 “Property, Plant and Equipment” (“Topic 360”). Topic 360 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and to evaluate the asset group against the sum of the undiscounted future cash flows. If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the expected undiscounted future cash flows to the net book value of the assets.

Warranties Estimated manufacturing warranty costs are recorded in cost of sales at the time of sale of the warranted products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products. These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience. When a customer purchases an extended warranty, revenue associated with the extended warranty is deferred and recognized over the life of the extended warranty period. Costs during the extended warranty period are expensed as incurred.

Product Liabilities The Company records product liability reserves for its self-insured portion of any outstanding product liability cases when losses are probable and reasonably estimable. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding product liability cases to determine an appropriate case reserve for each based upon the Company’s best judgment with the advice of legal counsel. These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the case. Second, the Company determines the amount of additional reserve required to cover incurred, but not reported, product liability obligations and to account for possible adverse development of the established case reserves utilizing actuarially developed estimates.

Derivative Financial Instruments and Hedging Activities The Company has policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited. The Company uses financial instruments to manage the market risk from changes in foreign exchange rates, commodities and interest rates. The Company follows the guidance in accordance with ASC No. 815 “Derivatives and Hedging” (“Topic 815”). The fair values of all outstanding derivatives are recorded in the Consolidated Balance Sheets. The change in a derivative’s fair value is recorded each period in current earnings or accumulated other comprehensive income (loss) (“AOCI”) depending on whether the derivative is designated and qualifies as a cash flow hedge.

The Company selectively hedges anticipated transactions that are subject to foreign exchange exposure, commodity price exposure or variable interest rate exposure, primarily using foreign currency exchange contracts (“FX Forward Contracts”), commodity contracts and interest rate contracts, respectively. These instruments are designated as cash flow hedges in accordance with Topic 815 and are recorded in the Consolidated Balance Sheets at fair value. The effective portion of the contracts’ gains or losses due to changes in fair value are initially recorded as a component of AOCI and are subsequently reclassified into earnings when the hedged transactions, typically sales and costs related to sales and interest expense, occur and affect earnings. These contracts are highly effective in hedging the variability in future cash attributable to changes in currency exchange rates, commodity prices or interest rates.

The amount reported as derivative instrument fair market value adjustment in the AOCI account within the Consolidated Statements of Comprehensive Income (Loss) represents the net gain (loss) on foreign currency exchange contracts designated as cash flow hedges, net of income taxes.

Stock-Based Compensation The Company recognizes expense net of estimated future forfeitures for all stock-based compensation on a straight-line basis over the vesting period of the entire award. Estimated future forfeitures are based on the Company’s historical experience. Stock-based compensation plans are described more fully in Note 16, “Stock-Based Compensation.”

Research and Development Research and development costs are charged to expense as incurred and amounted to $30.6 million, $31.1 million and $35.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Research and development costs include salaries, materials, contractor fees and other administrative costs. 

Income Taxes The Company utilizes the liability method to recognize deferred tax assets and liabilities for the expected future income tax consequences of events that have been recognized in the Company’s financial statements. Under this method, deferred tax assets and liabilities are determined based on the temporary difference between financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the Company will not realize the benefit of such assets. The Company evaluates its uncertain tax positions as new information becomes available. Tax benefits are recognized to the extent a position is more likely than not to be sustained upon examination by the taxing authority.

Net Income (Loss) Per Share Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each year or period. The calculation of diluted net income (loss) per share reflects the effect of all potential dilutive shares that were outstanding during the respective periods, unless the effect of doing so would be antidilutive. The Company uses the treasury stock method to calculate the effect of outstanding stock-based compensation awards.

Comprehensive Income (Loss) Comprehensive income (loss) includes, in addition to net income (loss), other items that are reported as direct adjustments to Manitowoc stockholders’ equity. These items are foreign currency translation adjustments, employee postretirement benefit adjustments and the change in fair value of certain derivative instruments.

Recent Accounting Changes and Pronouncements

 

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 “Income Taxes (“Topic 740”) (“ASU 2019-12”).” ASU 2019-12 simplifies accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance, including the recognition of deferred taxes for goodwill, the allocation of taxes to members of a consolidated group and requiring that an entity reflect the effect of enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for annual periods beginning after December 15, 2020. The adoption of ASU 2019-12 will not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15 “Intangibles – Goodwill and Other – Internal-use Software (Subtopic 250-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”).” The amendments in ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard was effective for annual periods beginning after December 15, 2019. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (“ASU 2016-13”),” which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. The new guidance is applicable to financial assets measured at amortized cost, net investments in leases and certain off-balance sheet credit exposures. The standard was effective for annual periods beginning after December 15, 2019. The adoption of ASU 2016-13 resulted in a $0.2 million reduction in beginning retained earnings and a corresponding reduction in accounts receivable on the Company’s Consolidated Balance Sheets as of December 31, 2020. There was no material impact to the Company’s Consolidated Statements of Operations or Consolidated Statements of Cash Flows.

 

v3.20.4
Sales
12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Sales

3. Sales

Significant Accounting Policy

Sales are recognized when obligations under the terms of a contract with the Company’s customer are satisfied; generally this occurs with the transfer of control of the Company’s cranes or aftermarket parts or completion of performance of services. Sales are measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company recognizes sales for extended warranties over the life of the extended warranty period.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, and are collected by the Company from a customer, are excluded from sales.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are categorized as a fulfillment cost and are included in cost of sales on the Consolidated Statement of Operations.

Performance Obligations

The following is a description of principle activities from which the Company generates sales. Disaggregation of the Company’s revenue sources are disclosed in Note 17, “Segments.”

Crane Sales

Crane sales are primarily generated through the sale of new and used cranes. Contracts with customers are generally in the form of a purchase order. Based on the nature of the Company’s contracts, the Company does not have any significant financing terms. Contracts may have variable consideration in the form of early pay discounts or rebates, however variable consideration is not material to the overall contract with the customer. Sales are earned under these contracts when control of the product is transferred to the customer. Control transfers to the customer generally upon delivery to the carrier or acceptance through an independent inspection company that acts as an agent of the customer.

From time to time, the Company enters into agreements where the customer has the right to exercise a put option requiring the Company to buyback a crane at an agreed upon price. The Company evaluates each agreement at inception to determine if the

customer has a significant economic incentive to exercise that right. If it is determined that the customer has a significant economic incentive to exercise that right, the agreement is accounted for as a lease in accordance with ASC Topic 842 “Leases” (“Topic 842”). If it is determined that the customer does not have a significant economic incentive to exercise that right, then revenue is recognized when control of the asset is transferred to the customer. Refer to Note 19, “Guarantees” for additional information.

Given the nature of the Company’s products, the customer may request that the product be held until a delivery location is identified. Under these “bill and hold” arrangements, sales are recognized when all of the following criteria are met: 1) the reason for the bill-and-hold arrangement is substantive, 2) the product is separately identified as belonging to the customer, 3) the product is ready for transfer to the customer, and 4) the Company does not have the ability to use the product or direct it to another customer.

Aftermarket Part Sales

Aftermarket part sales are generated through the sale of new and used parts to end customers and distributors. Aftermarket parts sales are recognized when control of the product is transferred to the customer. Control transfers to the customer generally upon delivery to the carrier. Customers generally have a right of return which the Company estimates using historical information. The amount of estimated returns is deducted from net sales.

Other Sales

The Company’s other sales consist primarily of sales from:

 

Repair and field service work; and

 

Training and technical publications.

The Company’s performance obligations for other sales generally relates to performing specific agreed upon services. Sales are earned upon the completion of those services.

Customer Advances

The Company records deferred revenue when cash payments are received in advance of performance, including amounts which are refundable. The table below shows the change in the customer advances balance for the year ended December 31, 2020 and 2019 which are included in current liabilities in the Consolidated Balance Sheets.

 

 

 

2020

 

 

2019

 

Balance at beginning of period

 

$

25.8

 

 

$

9.6

 

Cash received in advance of satisfying

   performance obligation

 

 

108.0

 

 

 

112.2

 

Revenue recognized

 

 

(108.5

)

 

 

(96.3

)

Currency translation

 

 

0.2

 

 

 

0.3

 

Balance at end of period

 

$

25.5

 

 

$

25.8

 

 

Practical Expedients and Exemptions

The Company expenses sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within engineering, selling and administrative expenses in the Consolidated Statement of Operations.

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed.

v3.20.4
Fair Value of Financial Instruments
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

ASC Topic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820-10 classifies the inputs used to measure fair value into the following hierarchy:

Level 1

Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2

Unadjusted quoted prices in active markets for similar assets or liabilities, or

           

Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or

           

Inputs other than quoted prices that are observable for the asset or liability

Level 3

Unobservable inputs for the asset or liability

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value as of December 31, 2020 and 2019 by level within the fair value hierarchy.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

 

 

Fair Value as of December 31, 2020

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Recognized Location

Forward currency exchange contracts

 

$

 

 

$

 

 

$

 

 

$

 

 

Other current assets

Forward currency exchange contracts

 

$

 

 

$

 

 

$

 

 

$

 

 

Accounts payable and accrued expenses

 

 

 

Fair Value as of December 31, 2019

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Recognized Location

Forward currency exchange contracts

 

$

 

 

$

0.1

 

 

$

 

 

$

0.1

 

 

Other current assets

Forward currency exchange contracts

 

$

 

 

$

0.1

 

 

$

 

 

$

0.1

 

 

Accounts payable and accrued expenses

The fair value of the senior secured second lien notes due on April 1, 2026, with an annual coupon rate of 9.000% (the “2026 Notes”), was approximately $324.9 million as of December 31, 2020.

The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company estimates fair value of its 2026 Notes based on quoted market prices of the instruments; because these markets are typically actively traded, the liabilities are classified as Level 1 within the valuation hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and short-term variable debt, including any amounts outstanding under our revolving credit facility, approximate fair value, without being discounted as of December 31, 2020 due to the short-term nature of these instruments.

FX Forward Contracts are valued through an independent valuation source which uses an industry standard data provider, with resulting valuations periodically validated through third-party or counterparty quotes. As such, these derivative instruments are classified within Level 2. See Note 5, “Derivative Financial Instruments” for additional information.

v3.20.4
Derivative Financial Instruments
12 Months Ended
Dec. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

 


 

5. Derivative Financial Instruments

The Company’s risk management objective is to ensure that business exposures to risks are minimized using the most effective and efficient methods to eliminate, reduce, or transfer such exposures. Operating decisions consider these associated risks and, whenever possible, transactions are structured to avoid or mitigate these risks.

From time to time, the Company enters into FX Forward Contracts to manage the exposure on forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities in currencies other than the functional currency of certain subsidiaries. Certain of these FX Forward Contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss). These changes in fair value are reclassified into earnings as a component of cost of sales, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of other income (expense) – net in the period in which the transaction is no longer considered probable of occurring. No amounts were recorded related to these types of transactions during the years ended December 31, 2020, 2019 and 2018.

The Company had FX Forward Contracts with an aggregate notional amount of $9.3 million and $32.6 million outstanding as of December 31, 2020 and 2019, respectively. The aggregate notional amount outstanding as of December 31, 2020 is scheduled to mature within one year. The FX Forward Contracts purchased are denominated in various foreign currencies. As of December 31, 2020 and 2019, the net fair value of these contracts was a net zero balance. Net unrealized gains (losses), net of income tax, recorded in accumulated other comprehensive income (loss) were zero as of December 31, 2020 and 2019.

The gains or losses recorded in the Consolidated Statement of Operations for FX Forward Contracts for the years ended December 31, 2020 and 2019 are summarized as follows:

 

 

Recognized Location

 

2020

 

 

2019

 

 

2018

 

Designated

 

Cost of sales

 

$

0.3

 

 

$

3.1

 

 

$

5.0

 

Non-Designated

 

Other income (expense) - net

 

 

0.6

 

 

 

3.9

 

 

 

(1.9

)

 

v3.20.4
Inventories
12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Inventories

6. Inventories

The components of inventories as of December 31, 2020 and 2019 are summarized as follows: 

 

 

2020

 

 

2019

 

Raw materials

 

$

114.9

 

 

$

156.3

 

Work-in-process

 

 

105.5

 

 

 

116.3

 

Finished goods

 

 

305.8

 

 

 

239.4

 

Total inventories

 

 

526.2

 

 

 

512.0

 

Excess and obsolete inventory reserve

 

 

(53.1

)

 

 

(50.6

)

Inventories — net

 

$

473.1

 

 

$

461.4

 

 

v3.20.4
Notes Receivable
12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Notes Receivable

7. Notes Receivable

The Company has notes receivable balances that are classified as current or long-term based on the timing of the amounts due. Long-term notes receivable are included within other non-current assets on the Consolidated Balance Sheet. Current and long-term notes receivable balances primarily relate to the Company's captive finance entity in China. As of December 31, 2020, the Company had current and long-term notes receivable in the amounts of $13.6 million and $12.7 million, respectively. As of December 31, 2019, the Company had current and long-term notes receivable in the amounts of $17.4 million and $16.3 million, respectively.

v3.20.4
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2020
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

8. Property, Plant and Equipment

The components of property, plant and equipment as of December 31, 2020 and 2019 are summarized as follows: 

 

 

2020

 

 

2019

 

Land

 

$

20.3

 

 

$

24.0

 

Building and improvements

 

 

203.7

 

 

 

197.3

 

Machinery, equipment and tooling

 

 

292.6

 

 

 

274.2

 

Furniture and fixtures

 

 

21.0

 

 

 

18.5

 

Computer hardware and software

 

 

119.3

 

 

 

119.3

 

Rental cranes

 

 

90.2

 

 

 

77.7

 

Construction in progress

 

 

9.0

 

 

 

11.2

 

Total cost

 

 

756.1

 

 

 

722.2

 

Less accumulated depreciation

 

 

(461.8

)

 

 

(432.3

)

Property, plant and equipment — net

 

$

294.3

 

 

$

289.9

 

The Company recorded no asset impairment charges for the year ended December 31, 2020 and 2019.

 

Assets Held for Sale

During 2020, the Company recorded $3.3 million in assets held for sale related to the Fanzeres, Portugal manufacturing building and land.

During 2019, the Company sold the Manitowoc, Wisconsin manufacturing buildings and land previously classified as assets held for sale, which resulted in a $3.5 million gain recorded within other income (expense) – net on the Consolidated Statements of Operations.

v3.20.4
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

9. Goodwill and Other Intangible Assets

The Company performs its annual goodwill and indefinite lived assets impairment testing during the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. During the first quarter of 2020, the Company considered the decline in its market capitalization due to the COVID-19 pandemic as an interim triggering event. The Company’s interim test results as of March 31, 2020 indicated that the fair values of all reporting units exceeded their carrying values and thus, no impairment of goodwill existed. The Company again tested goodwill for impairment in the fourth quarter as part of its annual testing, and based on the results of that test, no impairment was indicated. As the Company is unable to predict future impacts of the COVID-19 pandemic, including a more prolonged and/or severe pandemic than anticipated, or future changes in management’s judgements and assumptions used to assess the fair value of the reporting units, which would result in a non-cash impairment charge in the future, it will continue to monitor changes in circumstances and test more frequently if those changes indicate that assets might be impaired.

A considerable amount of management judgment and assumptions are required in performing the impairment tests as it relates to revenue growth rates and projected operating income. While the Company believes the judgments and assumptions are reasonable, different assumptions could change the estimated fair value and, therefore, additional impairment charges could be required. Weakening industry or economic trends, disruptions to our business, unexpected significant changes or planned changes in the use of the assets or in entity structure may adversely impact the assumptions used in the valuations. The Company continually monitors market conditions and determines if any additional interim reviews of goodwill, other intangibles or long-lived assets are warranted. In the event the Company determines that assets are impaired in the future, the Company would recognize a non-cash impairment charge, which could have a material adverse effect on the Company’s Consolidated Balance Sheets and Results of Operations.

The changes in carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows: 

 

 

Americas

 

 

MEAP

 

 

Consolidated

 

Balance as of January 1, 2019

 

$

166.5

 

 

$

66.3

 

 

$

232.8

 

Foreign currency impact

 

 

 

 

 

(0.3

)

 

 

(0.3

)

Net balance as of December 31, 2019

 

 

166.5

 

 

 

66.0

 

 

 

232.5

 

Foreign currency impact

 

 

 

 

 

2.6

 

 

 

2.6

 

Net balance as of December 31, 2020

 

$

166.5

 

 

$

68.6

 

 

$

235.1

 

The gross carrying amount, accumulated amortization and net book value of the Company’s intangible assets other than goodwill as of December 31, 2020 and 2019 are summarized as follows: 

 

 

December 31, 2020

 

 

December 31, 2019

 

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

Amount

 

 

Net

Book

Value

 

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

Amount

 

 

Net

Book

Value

 

Definite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

$

9.9

 

 

$

(8.6

)

 

$

1.3

 

 

$

10.0

 

 

$

(8.5

)

 

$

1.5

 

Patents

 

 

31.0

 

 

 

(30.3

)

 

 

0.7

 

 

 

29.5

 

 

 

(28.7

)

 

 

0.8

 

Total

 

 

40.9

 

 

 

(38.9

)

 

 

2.0

 

 

 

39.5

 

 

 

(37.2

)

 

 

2.3

 

Indefinite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks and tradenames

 

 

100.0

 

 

 

 

 

 

100.0

 

 

 

95.3

 

 

 

 

 

 

95.3

 

Distribution network

 

 

19.6

 

 

 

 

 

 

19.6

 

 

 

18.7

 

 

 

 

 

 

18.7

 

Total

 

 

119.6

 

 

 

 

 

 

119.6

 

 

 

114.0

 

 

 

 

 

 

114.0

 

Total other intangible assets

 

$

160.5

 

 

$

(38.9

)

 

$

121.6

 

 

$

153.5

 

 

$

(37.2

)

 

$

116.3

 

Amortization of intangible assets for the years ended December 31, 2020, 2019 and 2018 was $0.3 million, $0.3 million and $0.3 million, respectively. Excluding the impact of any future acquisitions, divestitures or impairments, the Company anticipates amortization will be approximately $0.3 million per year through 2022.

Definite lived intangible assets and long-lived assets are subject to impairment testing whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The Company considered the impact of the COVID-19 pandemic on each of the Company’s indefinite lived intangible assets, definite lived intangible assets and long-lived assets. The Company determined there was not a triggering event during the year ended December 31, 2020.

v3.20.4
Accounts Payable and Accrued Expenses
12 Months Ended
Dec. 31, 2020
Payables And Accruals [Abstract]  
Accounts Payable and Accrued Expenses

10. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of December 31, 2020 and 2019 are summarized as follows: 

 

 

2020

 

 

2019

 

Trade accounts payable

 

$

178.1

 

 

$

187.1

 

Employee-related expenses

 

 

38.5

 

 

 

56.6

 

Accrued vacation

 

 

22.4

 

 

 

20.2

 

Miscellaneous accrued expenses

 

 

90.4

 

 

 

76.9

 

Total accounts payable and accrued expenses

 

$

329.4

 

 

$

340.8

 

 

 

v3.20.4
Debt
12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Debt

11. Debt

Outstanding debt as of December 31, 2020 and 2019 is summarized as follows:

 

 

2020

 

 

2019

 

Borrowing under senior secured asset based revolving

   credit facility

 

$

 

 

$

 

Senior secured second lien notes due 2026

 

 

300.0

 

 

 

300.0

 

Other

 

 

14.7

 

 

 

16.7

 

Deferred financing costs

 

 

(3.8

)

 

 

(4.5

)

Total debt

 

 

310.9

 

 

 

312.2

 

Short-term borrowings and current portion of

   long-term debt

 

 

(10.5

)

 

 

(3.8

)

Long-term debt

 

$

300.4

 

 

$

308.4

 

 

On March 25, 2019, the Company and certain of its subsidiaries entered into an indenture with U.S. Bank National Association as trustee and notes collateral agent, pursuant to which the Company issued $300.0 million aggregate principal amount of the 2026 Notes with an annual coupon rate of 9.000%. Interest on the 2026 Notes is payable in cash semi-annual in arrears on April 1 and October 1 of each year. The 2026 Notes are fully and unconditionally guaranteed on a senior secured second lien basis, jointly and severally, by each of the Company’s existing and future domestic subsidiaries that is either a guarantor or a borrower under the ABL Revolving Credit Facility (as defined below) or that guarantees certain other debt of the Company or a guarantor. The 2026 Notes and the related guarantees are secured on a second-priority basis, subject to certain exceptions and permitted liens, by pledges of capital stock and other equity interests and other security interests in substantially all of the personal property and fee-owned real property of the Company and of the guarantors that secure obligations under the ABL Revolving Credit Facility.

Additionally, on March 25, 2019, the Company and certain subsidiaries of the Company (the “Loan Parties”) entered into a credit agreement (the “ABL Credit Agreement”) with JP Morgan Chase Bank, N.A. as administrative and collateral agent, and certain financial institutions party thereto as lenders, providing for a senior secured asset-based revolving credit facility (the “ABL Revolving Credit Facility”) of up to $275.0 million. The borrowing capacity under the ABL Revolving Credit Facility is based on the value of inventory, accounts receivable and fixed assets of the Loan Parties. The Loan Parties’ obligations under the ABL Revolving Credit Facility are secured on a first-priority basis, subject to certain exceptions and permitted liens, by substantially all of the personal property and fee-owned real property of the Loan Parties. The liens securing the ABL Revolving Credit Facility are senior in priority to the second-priority liens securing the obligations under the 2026 Notes and the related guarantees. The ABL Revolving Credit Facility has a term of five years and includes a $75.0 million letter of credit sub-facility, $10.0 million of which is available to the Company’s German subsidiary that is a borrower under the ABL Revolving Credit Facility.

Borrowings under the ABL Revolving Credit Facility bear interest at a variable rate using either the Alternative Base Rate or the Eurodollar and Overnight London Interbank Offer Rate (“LIBOR”). The variable interest rate is based upon the average quarterly availability as of the most recent determination date as follows:

Average quarterly availability

Alternative base rate spread

 

Eurodollar and overnight LIBOR spread

 

≥ 50% of Aggregate Commitment

0.25%

 

1.25%

 

< 50% of Aggregate Commitment

0.50%

 

1.50%

 

The Company used the initial extension credit under the ABL Revolving Credit Facility, together with the net proceeds from the offering of the 2026 Notes, to (i) redeem all of the Company’s $260.0 million in outstanding 12.750% Senior Secured Second Lien Notes due 2021 (the “Prior 2021 Notes”); (ii) repay all obligations outstanding, and terminate all commitments, under (x) the Company’s previous $225.0 million ABL Revolving Credit Facility (“Prior ABL Facility”) and (y) $75.0 million AR Securitization Facility; and (iii) pay related fees and expenses, including $16.6 million of call premium on the Prior 2021 Notes, $5.0 million of closing costs and $4.6 million of accrued interest.

During the year ended December 31, 2019, the Company recorded a $25.0 million charge in the Consolidated Statement of Operations associated with the Company’s refinancing of the ABL Revolving Credit Facility and 2026 Notes. The charge is composed of $16.6 million of call premium on the Prior 2021 Notes, $5.3 million of unamortized discount on the Prior 2021 Notes and $3.1 million of unamortized debt issuance costs.

As of December 31, 2020, the Company had outstanding $14.7 million of other indebtedness that has a weighted-average interest rate of approximately 4.1%. This debt includes balances on local credit lines and other financing arrangements obligations.

As of December 31, 2020, the Company had no borrowings outstanding under the ABL Revolving Credit Facility and no borrowings under the Prior ABL Facility as of December 31, 2019. During the year ended December 31, 2020, the highest daily borrowing under the ABL Revolving Credit Facility was $50.0 million and the average borrowing was $13.3 million, while the weighted-average annual interest rate was 1.77%. The interest rate of the ABL Revolving Credit Facility fluctuates based on excess availability. As of December 31, 2020, the spreads for LIBOR and prime rate borrowings were 1.25% and 0.25%, respectively, with excess availability of approximately $240.8 million, which represents revolver borrowing capacity of $243.8 million less U.S. letters of credit outstanding of $3.0 million.

Both the ABL Revolving Credit Facility and 2026 Notes include customary covenants which include, without limitation, restrictions on, the Company’s ability and the ability of the Company’s restricted subsidiaries to incur, assume or guarantee additional debt or issue certain preferred shares, pay dividends on or make other distributions in respect of the Company’s capital stock or make other restricted payments, make certain investments, sell or transfer certain assets, create liens on certain assets to secure debt, consolidate, merge, sell, or otherwise dispose of all or substantially all of the Company’s assets, enter into certain transactions with affiliates and designate the Company’s subsidiaries as unrestricted. Both the ABL Revolving Credit Facility and the 2026 Notes also include customary events of default. The ABL Revolving Credit Facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in the Company’s business or financial condition since December 31, 2018.

Additionally, the ABL Revolving Credit Facility contains a covenant requiring the Company to maintain a minimum fixed charge coverage ratio under certain circumstances set forth in the ABL Credit Agreement.

The aggregate scheduled future maturities of outstanding debt obligations as of December 31, 2020 is as follows: 

Year

 

 

 

 

2021

 

$

10.5

 

2022

 

 

2.5

 

2023

 

 

1.0

 

2024

 

 

 

2025

 

 

 

Thereafter

 

 

300.7

 

Total

 

$

314.7

 

 

 

The table of scheduled maturities above does not agree to the Company’s total debt as of December 31, 2020 as shown on the Consolidated Balance Sheet due to $3.8 million of deferred financing costs.

As of December 31, 2020, the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the ABL Revolving Credit Facility and 2026 Notes. Based upon management’s current plans and outlook, the Company believes it will be able to comply with these covenants during the subsequent twelve months.

v3.20.4
Accounts Receivable Securitization and Other Factoring Arrangements
12 Months Ended
Dec. 31, 2020
Transfers And Servicing [Abstract]  
Accounts Receivable Securitization and Other Factoring Arrangements

12. Accounts Receivable Securitization and Other Factoring Arrangements

The Company had maintained a Receivables Purchase Agreement (“RPA”) among Manitowoc Funding, LLC (“MTW Funding”), as Seller, The Manitowoc Company, Inc., as Servicer, and Wells Fargo Bank, N.A., as Purchaser and as Agent, with a commitment size of $75.0 million. Under the RPA (and the related Purchase and Sale Agreements referenced in the RPA), the Company’s domestic trade accounts receivable were sold to MTW Funding which, in turn, sold, conveyed, transferred and assigned to a third-party financial institution (“Purchaser”), all of MTW Funding’s rights, title and interest in a pool of receivables to the Purchaser. Transactions under the program are accounted for as sales in accordance with ASC Topic 860, “Transfers and Servicing” (“Topic 860”). This program was terminated on March 25, 2019.

Trade accounts receivables sold to the Purchaser and being serviced by the Company totaled zero and $149.0 million as of December 31, 2020 and 2019, respectively. Cash proceeds received from customers related to the receivables previously sold for the years ended December 31, 2020 and 2019 were zero and $182.8 million, respectively.

Proceeds received from the sale of trade receivables under the program were included in cash flows from operating activities; whereas cash collections related to the deferred purchase price were classified as cash flows from investing activities in the accompanying Consolidated Statements of Cash Flows.

The Company has two non-U.S. accounts receivable financing programs with maximum availability of €55 million. Under these financing programs, the Company has the ability to sell eligible receivables up to the maximum limit and can sell additional receivables as previously sold are collected. During the year ended December 31, 2020, the Company sold receivables and received cash of €161.0 million. The Company also has one U.S. accounts receivable financing program with maximum availability of $35.0 million. Transactions under the U.S. and non-U.S. programs were accounted for as sales in accordance with Topic 860.

v3.20.4
Income Taxes
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

13. Income Taxes

Income (loss) from continuing operations before income taxes for the years ended December 31, 2020, 2019 and 2018 is summarized as follows: 

 

 

2020

 

 

2019

 

 

2018

 

Income (loss) from continuing operations before

   income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

(51.6

)

 

$

(10.0

)

 

$

(76.4

)

Non-U.S.

 

 

49.6

 

 

 

69.0

 

 

 

4.7

 

Total

 

$

(2.0

)

 

$

59.0

 

 

$

(71.7

)

Income tax provision (benefit) for the years ended December 31, 2020, 2019 and 2018 is summarized as follows:

 

 

2020

 

 

2019

 

 

2018

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal and state

 

$

(4.3