MANITOWOC CO INC, 10-K filed on 2/28/2017
Annual Report
Document and Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Jan. 31, 2017
Jun. 30, 2016
Document and entity information
 
 
 
Entity Registrant Name
MANITOWOC CO INC 
 
 
Entity Central Index Key
0000061986 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2016 
 
 
Amendment Flag
false 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 744 
Entity Common Stock, Shares Outstanding
 
140,190,685 
 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Operations
 
 
 
Net sales
$ 1,600.0 
$ 1,865.7 
$ 2,305.2 
Cost of sales
1,359.8 
1,533.5 
1,838.0 
Gross profit
253.3 
332.2 
467.2 
Operating costs and expenses:
 
 
 
Engineering, selling and administrative expenses
280.7 
316.9 
350.2 
Asset impairment expense
96.9 
15.3 
Amortization of intangible assets
3.0 
3.0 
3.3 
Restructuring expense
23.4 
9.4 
6.6 
Other expense
2.6 
Total operating costs and expenses
406.6 
344.6 
360.1 
Operating (loss) income
(153.3)
(12.4)
107.1 
Other (expense) income:
 
 
 
Interest expense
(39.6)
(95.6)
(92.8)
Amortization of deferred financing fees
(2.2)
(4.2)
(4.4)
Loss on debt extinguishment
(76.3)
(0.2)
(25.5)
Other income (expense) — net
3.3 
1.4 
(4.8)
Total other expense
(114.8)
(98.6)
(127.5)
Loss from continuing operations before taxes
(268.1)
(111.0)
(20.4)
Provision (benefit) for taxes on income
100.5 
(41.1)
(17.8)
Loss from continuing operations
(368.6)
(69.9)
(2.6)
Discontinued operations:
 
 
 
(Loss) income from discontinued operations, net of income taxes of $0.6, $35.9 and $26.5, respectively
(7.2)
135.4 
161.4 
Loss on sale of discontinued operations, net of income taxes of $0.0, $0.0, and $(0.6), respectively
(11.0)
Net (loss) income
(375.8)
65.5 
147.8 
Less: Net income attributable to noncontrolling interest, net of tax
3.9 
Net (loss) income attributable to Manitowoc common shareholders
(375.8)
65.5 
143.9 
Amounts attributable to the Manitowoc common shareholders:
 
 
 
Loss from continuing operations
(368.6)
(69.9)
(6.9)
(Loss) income from discontinued operations, net of income taxes
(7.2)
135.4 
161.8 
Loss on sale of discontinued operations, net of income taxes
(11.0)
Net (loss) income attributable to Manitowoc common shareholders
(375.8)
65.5 
143.9 
Net (loss) income
$ (375.8)
$ 65.5 
$ 143.9 
Basic (loss) income per common share:
 
 
 
(Loss) income from continuing operations attributable to Manitowoc common shareholders (in dollars per share)
$ (2.68)
$ (0.51)
$ (0.05)
Income (loss) from discontinued operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.05)
$ 1.00 
$ 1.20 
Loss on sale of discontinued operations, net of income taxes (in dollars per share)
$ 0.00 
$ 0.00 
$ (0.08)
Basic (loss) income per share attributable to Manitowoc common shareholders (in dollars per share)
$ (2.73)
$ 0.48 
$ 1.07 
Diluted (loss) income per common share:
 
 
 
(Loss) income from continuing operations attributable to Manitowoc common shareholders (in dollars per share)
$ (2.68)
$ (0.51)
$ (0.05)
Income (loss) from discontinued operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.05)
$ 1.00 
$ 1.20 
Loss on sale of discontinued operations, net of income taxes (in dollars per share)
$ 0.00 
$ 0.00 
$ (0.08)
Diluted (loss) income per share attributable to Manitowoc common shareholders (in dollars per share)
$ (2.73)
$ 0.48 
$ 1.07 
Consolidated Statements of Operations (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Statement [Abstract]
 
 
 
Earnings (loss) from discontinued operations, income taxes
$ 0.6 
$ 35.9 
$ 26.5 
Loss on sale of discontinued operations, income taxes
$ 0 
$ 0 
$ (0.6)
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
Net (loss) income
$ (375.8)
$ 65.5 
$ 147.8 
Other comprehensive income (loss), net of tax:
 
 
 
Employee pension and postretirement benefits, net of income taxes of $(0.2), $4.9 and $(13.3), respectively
(20.4)
(92.2)
(84.0)
Unrealized income (loss) on derivatives, net of income taxes of $0.9, $1.0 and $(3.8), respectively
1.4 
2.5 
(7.3)
Foreign currency translation adjustments
(4.1)
12.4 
(32.3)
Total other comprehensive loss, net of tax
(23.1)
(77.3)
(123.6)
Comprehensive (loss) income
(398.9)
(11.8)
24.2 
Comprehensive income attributable to noncontrolling interest
3.9 
Comprehensive (loss) income attributable to Manitowoc common shareholders
$ (398.9)
$ (11.8)
$ 20.3 
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
Unrealized income (loss) on derivatives, taxes
$ 0.9 
$ 1.0 
$ (3.8)
Employee pension and post retirement benefits, taxes
$ (0.2)
$ 4.9 
$ (13.3)
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Current Assets:
 
 
Cash and cash equivalents
$ 69.9 
$ 31.5 
Accounts receivable, less allowances of $11.1 and $12.8, respectively
134.4 
155.7 
Inventories — net
429.0 
489.2 
Notes receivable — net
62.4 
65.1 
Other current assets
54.0 
45.9 
Current assets of discontinued operations
254.2 
Total current assets
749.7 
1,041.6 
Property, plant and equipment — net
308.8 
410.7 
Goodwill
299.6 
306.5 
Other intangible assets — net
114.1 
119.3 
Other non-current assets
45.6 
177.4 
Long-term assets held for sale
5.5 
Long-term assets of discontinued operations
1,501.5 
Total assets
1,517.8 
3,562.5 
Current Liabilities:
 
 
Accounts payable and accrued expenses
321.2 
436.3 
Short-term borrowings
12.4 
67.2 
Product warranties
36.5 
35.9 
Customer advances
21.0 
10.3 
Product liabilities
21.7 
21.9 
Current liabilities of discontinued operations
312.0 
Total current liabilities
412.8 
883.6 
Non-Current Liabilities:
 
 
Long-term debt
269.1 
1,330.4 
Deferred income taxes
36.6 
25.6 
Pension obligations
86.4 
99.4 
Postretirement health and other benefit obligations
38.0 
44.4 
Long-term deferred revenue
20.3 
29.7 
Other non-current liabilities
64.1 
87.3 
Long-term liabilities of discontinued operations
219.8 
Total non-current liabilities
514.5 
1,836.6 
Commitments and contingencies (Note 18)
   
   
Total Equity:
 
 
Preferred stock (authorized 3,500,000 shares of $.01 par value; none outstanding)
Common stock (authorized 300,000,000 shares of $.01 par value; issued 163,175,928 shares; 139,841,214 and 136,617,161 shares outstanding, respectively)
1.4 
1.4 
Additional paid-in capital
567.6 
558.0 
Accumulated other comprehensive loss
(162.9)
(207.8)
Retained earnings
247.3 
562.3 
Treasury stock, at cost (23,334,714 and 26,558,767 shares, respectively)
(62.9)
(71.6)
Total Manitowoc stockholders’ equity
590.5 
842.3 
Total liabilities and equity
$ 1,517.8 
$ 3,562.5 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Accounts Receivable, allowances (in dollars)
$ 11.1 
$ 12.8 
Preferred stock, shares authorized (in shares)
3,500,000 
3,500,000 
Preferred stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Preferred stock, shares outstanding (in shares)
Common stock, shares authorized (in shares)
300,000,000 
300,000,000 
Common stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common stock, shares issued (in shares)
163,175,928 
163,175,928 
Common stock, shares outstanding (in shares)
139,841,214 
136,617,161 
Treasury stock, shares (in shares)
23,334,714 
26,558,767 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash Flows From Operations
 
 
 
Net (loss) income
$ (375.8)
$ 65.5 
$ 147.8 
Adjustments to reconcile net (loss) income to cash (used for) provided by operating activities of continuing operations:
 
 
 
Asset impairment expense
96.9 
15.3 
Loss (income) from discontinued operations, net of income taxes
7.2 
(135.4)
(161.4)
Depreciation expense
45.6 
50.6 
47.2 
Amortization of intangible assets
3.0 
3.0 
3.3 
Amortization of deferred financing fees
2.2 
4.2 
4.4 
Deferred income tax (benefit) - net
101.4 
(4.4)
11.5 
Noncash loss on early extinguishment of debt
15.4 
0.2 
6.3 
Loss (gain) on sale of property, plant and equipment
1.1 
(0.3)
(6.8)
Loss on sale of discontinued operations
11.0 
Stock-based compensation expense and other
(0.7)
7.5 
(0.2)
Changes in operating assets and liabilities, excluding the effects of business divestitures:
 
 
 
Accounts receivable
18.4 
(10.7)
11.7 
Inventories
52.7 
(7.2)
32.6 
Notes receivable
32.2 
9.9 
(21.8)
Other assets
(6.9)
(18.9)
(27.1)
Accounts payable
(105.8)
(12.4)
(29.8)
Accrued expenses and other liabilities
(9.3)
7.6 
(145.4)
Net cash used for operating activities of continuing operations
(122.4)
(25.5)
(116.7)
Net cash (used for) provided by operating activities of discontinued operations
(49.9)
126.3 
197.7 
Net cash (used for) provided by operating activities
(172.3)
100.8 
81.0 
Cash Flows From Investing
 
 
 
Capital expenditures
(45.9)
(54.9)
(59.5)
Proceeds from sale of property, plant and equipment
8.4 
7.3 
12.8 
Other
(1.6)
2.6 
5.7 
Net cash used for investing activities of continuing operations
(39.1)
(45.0)
(41.0)
Net cash (used for) provided by investing activities of discontinued operations
(2.4)
59.1 
(25.3)
Net cash (used for) provided by investing activities
(41.5)
14.1 
(66.3)
Cash Flows From Financing
 
 
 
Payments on long-term debt
(1,389.0)
(105.4)
(635.3)
Proceeds from long-term debt
272.1 
5.1 
637.2 
Payments on notes financing - net
(8.4)
(9.4)
(0.3)
Debt issuance costs
(8.9)
(5.2)
Dividends paid
(10.9)
(10.8)
Exercises of stock options including windfall tax benefits
9.4 
7.9 
25.9 
Dividend from spun-off subsidiary
1,361.7 
Cash transferred to spun-off subsidiary
(17.7)
Net cash provided by (used for) financing activities of continuing operations
219.2 
(112.7)
11.5 
Net cash provided by (used for) financing activities of discontinued operations
0.2 
(0.2)
(7.5)
Net cash provided by (used for) financing activities
219.4 
(112.9)
4.0 
Effect of exchange rate changes on cash
0.9 
(6.6)
(5.6)
Net increase (decrease) in cash and cash equivalents
6.5 
(4.6)
13.1 
Balance at beginning of year, including cash of discontinued operations of $31.9, $16.5 and $9.6, respectively
63.4 
68.0 
54.9 
Balance at end of year, including cash of discontinued operations of $0.0, $31.9, and $16.5, respectively
69.9 
63.4 
68.0 
Supplemental Cash Flow Information
 
 
 
Interest paid
49.6 
98.8 
120.4 
Income taxes paid
$ 8.9 
$ 7.7 
$ 73.8 
Consolidated Statements of Cash Flows (Parenthetical) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Statement of Cash Flows [Abstract]
 
 
 
 
Cash and cash equivalents
$ 0 
$ 31.9 
$ 16.5 
$ 9.6 
Consolidated Statements of Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
USD ($)
Equity attributable to Manitowoc shareholders
USD ($)
Common Stock
USD ($)
Additional Paid-in Capital
USD ($)
Accumulated Other Comprehensive Loss
USD ($)
Retained Earnings
USD ($)
Treasury Stock
USD ($)
Noncontrolling Interest
USD ($)
Performance shares
Common Stock
Balance at beginning of year at Dec. 31, 2013 (As Reported)
 
 
 
 
 
$ 353.2 
 
 
 
Balance at beginning of year (Restatement Adjustment)
 
 
 
 
 
21.4 
 
 
 
Balance at beginning of year at Dec. 31, 2013
 
 
1.4 
506.0 
(6.9)
374.6 
(78.2)
6.8 
 
Balance (in shares) at Dec. 31, 2013
 
 
133,717,057 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
 
 
Stock options exercised (in shares)
 
 
1,726,024 
 
 
 
 
 
 
Restricted stock, net (in shares)
 
 
(14,390)
 
 
 
 
 
 
Performance shares issued (in shares)
 
 
 
 
 
 
 
 
115,178 
Stock options exercised and issuance of other stock awards
 
 
 
13.6 
 
 
4.8 
 
 
Windfall tax benefit on stock options exercised
 
 
 
7.5 
 
 
 
 
 
Stock-based compensation
 
 
 
12.6 
 
 
 
 
 
Distribution of Spun-off subsidiary
 
 
 
 
 
 
 
Other comprehensive loss
(123.6)
 
 
 
(123.6)
 
 
 
 
Net (loss) income
143.9 
 
 
 
 
143.9 
 
 
 
Net (loss) income at Jan. 01, 2014 (As Reported)
144.5 
 
 
 
 
 
 
 
 
Net (loss) income (Restatement Adjustment)
(0.6)
 
 
 
 
 
 
 
 
Cash dividends
 
 
 
 
 
(10.8)
 
 
 
Comprehensive income attributable to noncontrolling interest
(3.9)
 
 
 
 
 
 
3.9 
 
Noncontrolling interest deconsolidation as result of sale
 
 
 
 
 
 
 
(10.7)
 
Balance at end of year at Dec. 31, 2014 (As Reported)
 
 
 
 
 
486.9 
 
 
 
Balance at end of year (Restatement Adjustment)
 
 
 
 
 
20.8 
 
 
 
Balance at end of year at Dec. 31, 2014
844.9 
844.9 
1.4 
539.7 
(130.5)
507.7 
(73.4)
 
Balance (in shares) at Dec. 31, 2014
 
 
135,543,869 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
 
 
Stock options exercised (in shares)
 
 
464,616 
 
 
 
 
 
 
Restricted stock, net (in shares)
 
 
361,985 
 
 
 
 
 
 
Performance shares issued (in shares)
 
 
 
 
 
 
 
 
246,691 
Stock options exercised and issuance of other stock awards
 
 
 
2.3 
 
 
1.8 
 
 
Windfall tax benefit on stock options exercised
 
 
 
1.5 
 
 
 
 
 
Stock-based compensation
 
 
 
14.5 
 
 
 
 
 
Distribution of Spun-off subsidiary
 
 
 
 
 
 
 
Other comprehensive loss
(77.3)
 
 
 
(77.3)
 
 
 
 
Net (loss) income
65.5 
 
 
 
 
65.5 
 
 
 
Net (loss) income at Jan. 01, 2015 (As Reported)
63.5 
 
 
 
 
 
 
 
 
Net (loss) income (Restatement Adjustment)
2.0 
 
 
 
 
 
 
 
 
Cash dividends
 
 
 
 
 
(10.9)
 
 
 
Comprehensive income attributable to noncontrolling interest
 
 
 
 
 
 
 
Noncontrolling interest deconsolidation as result of sale
 
 
 
 
 
 
 
 
Balance at end of year at Dec. 31, 2015 (As Reported)
 
 
 
 
 
539.5 
 
 
 
Balance at end of year (Restatement Adjustment)
 
 
 
 
 
22.8 
 
 
 
Balance at end of year at Dec. 31, 2015
842.3 
842.3 
1.4 
558.0 
(207.8)
562.3 
(71.6)
 
Balance (in shares) at Dec. 31, 2015
 
 
136,617,161 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
 
 
Stock options exercised (in shares)
 
 
2,750,477 
 
 
 
 
 
 
Restricted stock, net (in shares)
 
 
(36,446)
 
 
 
 
 
 
Performance shares issued (in shares)
 
 
 
 
 
 
 
 
510,022 
Stock options exercised and issuance of other stock awards
 
 
 
0.3 
 
 
8.7 
 
 
Windfall tax benefit on stock options exercised
 
 
 
 
 
 
 
 
Stock-based compensation
 
 
 
9.3 
 
 
 
 
 
Distribution of Spun-off subsidiary
 
 
 
 
68.0 
60.8 
 
 
 
Other comprehensive loss
(23.1)
 
 
 
(23.1)
 
 
 
 
Net (loss) income
(375.8)
 
 
 
 
(375.8)
 
 
 
Cash dividends
 
 
 
 
 
 
 
 
Comprehensive income attributable to noncontrolling interest
 
 
 
 
 
 
 
Noncontrolling interest deconsolidation as result of sale
 
 
 
 
 
 
 
 
Balance at end of year at Dec. 31, 2016
$ 590.5 
$ 590.5 
$ 1.4 
$ 567.6 
$ (162.9)
$ 247.3 
$ (62.9)
$ 0 
 
Balance (in shares) at Dec. 31, 2016
 
 
139,841,214 
 
 
 
 
 
 
Company and Basis of Presentation
Company and Basis of Presentation
Company and Basis of Presentation
The Manitowoc Company, Inc. (“Manitowoc”, “MTW” and the “Company”) was founded in 1902 and has over a 110-year tradition of providing high-quality, customer-focused products and support services to its markets and for the year ended December 31, 2016, the Company had net sales of approximately $1.6 billion. MTW is one of the world’s leading providers of engineered lifting equipment for the global construction industry. Manitowoc designs, manufactures, markets, and supports one of the most comprehensive product lines of mobile telescopic cranes, tower cranes, lattice-boom crawler cranes, and boom trucks.  Its Crane products are principally marketed under the Manitowoc, Grove, Potain and National Crane brand names. The Company serves a wide variety of customers, including dealers, rental companies, contractors, and government entities, across the petrochemical and industrial, commercial, power and utilities, infrastructure, and residential end markets. Additionally, its Manitowoc Crane Care offering leverages MTW's installed base of approximately 140,000 cranes to provide aftermarket parts and services to enable its customers to manage their fleets most 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, Crane Care provides the Company with a consistent stream of recurring revenue. Manitowoc is a Wisconsin corporation, and its principal executive offices are located at 2400 South 44th Street, Manitowoc, Wisconsin 54220.
During the first quarter of fiscal 2016, the Board of Directors of The Manitowoc Company, Inc. approved the tax-free Spin-Off of the Company’s former foodservice business (“MFS” or “Foodservice”) into an independent, public company (the “Spin-Off”). To effect the Spin-Off, the Board declared a pro rata dividend of MFS common stock to MTW’s stockholders of record as of the close of business on February 22, 2016 (the “Record Date”) and the Company paid the dividend on March 4, 2016. Each MTW stockholder received one share of MFS common stock for every share of MTW common stock held as of the close of business on the Record Date.
In these Consolidated Financial Statements, unless otherwise indicated, references to Manitowoc, MTW and the Company refer to The Manitowoc Company, Inc. and its consolidated subsidiaries after giving effect to the Spin-Off, or, in the case of information as of dates or for periods prior to the Spin-Off, the consolidated entities of the Crane business and certain other assets and liabilities that were historically held at the MTW corporate level but were specifically identifiable and attributable to the Crane business.
As a result of the Spin-Off, the Consolidated Financial Statements and related financial information reflect MFS operations, assets and liabilities, and cash flows as discontinued operations for all periods presented.
During the first quarter of 2014, the Company sold its 50% interest in Manitowoc Dong Yue Heavy Machinery Co., Ltd. (“Manitowoc Dong Yue” or the “joint venture”), which produces mobile and truck-mounted hydraulic cranes in China, to its joint venture partner, Tai’an Taishan Heavy Industry Investment Co., Ltd., for a nominal amount. Consequently, the joint venture has been classified as discontinued operations in the Company’s financial statements.
See Note 3, “Discontinued Operations,” for further details concerning the above transactions being reported as discontinued operations.
Certain prior period amounts have been reclassified to conform to the current period presentation. All dollar amounts, except share and per share amounts, are in millions of dollars throughout the tables included in these notes unless otherwise indicated.
During the first quarter of 2016, in conjunction with the Spin-Off, the Company identified an out-of-period adjustment related to deferred tax assets, which originated prior to 2010, whereby the Company had understated the deferred tax assets by $6.2 million at each balance sheet date prior to March 31, 2016. In the first quarter of 2016, the Company recorded an adjustment to the deferred tax assets and the income tax provision on continuing operations to record the out-of-period adjustment. Additionally, the Company identified an out-of-period adjustment in MFS’ deferred tax assets, which also originated prior to 2010, whereby the Company had understated the deferred tax assets by $2.9 million at each balance sheet date prior to March 31, 2016. In the first quarter of 2016, prior to the Spin-Off, the Company recorded an adjustment to the deferred tax assets and the income tax provision on discontinued operations to correct the out-of-period adjustment. The Company does not believe that these adjustments were material to its Consolidated Financial Statements.
During the third quarter of 2016, the Company identified one adjustment to the previously issued financial statements whereby the Company, at each balance sheet date since March 2014, incorrectly classified a note receivable balance from Manitowoc's former joint venture partner Manitowoc Dong Yue as restricted cash. In evaluating whether the Company’s previously issued consolidated financial statements were materially misstated, the Company considered the guidance in Accounting Standards Codification (“ASC”) Topic 250, “Accounting Changes and Error Corrections” and ASC Topic 250-10-S99-1, “Assessing Materiality.” The Company determined that this error was not material to the Company's prior interim and annual period consolidated financial statements and therefore, amending the previously filed reports was not required. However, the Company determined that for purposes of comparability, the revision for the correction is reflected in the financial information of the applicable prior periods. The impact to the December 31, 2015 balance sheet is a reclassification of $14.0 million of restricted cash to $5.4 million in short-term notes receivable and $8.6 million of long-term notes receivable. The impact to the full year and fourth quarter 2015 cash flow statement is a decrease of $2.8 million of source of cash from “other” within cash flows from investing, and increase of $2.8 million of source of cash from “notes receivable” within cash flows from operations. The impact to the 2014 cash flow statement is a decrease of $17.3 million of source of cash from “other” within cash flows from investing, and increase of $17.3 million of source of cash from “notes receivable” within cash flows from operations.
Refer to Note 23, “Quarterly Financial Data (Unaudited),” for discussion of errors identified during the year which impacted only the quarterly financial data.
Basis of Presentation The consolidated financial statements include the accounts of The Manitowoc Company, Inc. and its wholly and majority-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 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.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Cash Equivalents All short-term investments purchased with an original maturity of three months or less are considered 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 market value. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. In the fourth quarter of 2016, the Company changed its method of inventory costing for certain inventory in the U.S. to the first-in, first-out (FIFO) method from the last-in, last-out (LIFO) method. The Company believes that the FIFO method is preferable as it results in uniformity across its global operations, aligns with how the Company internally manages inventory, provides better matching of revenues and expenses and improves comparability with its peers. The Company's other locations determine costs using the FIFO method. The impact of this change in accounting principle has been reflected through retrospective application to the financial statements for each period presented, and is further explained in Note 6, “Inventories”.
Goodwill and Other Intangible Assets The Company accounts for its goodwill and other intangible assets under the guidance of ASC Topic 350-10, “Intangibles — Goodwill and Other.” Under ASC Topic 350-10, goodwill is not amortized, but it is tested for impairment annually during the fourth quarter, or more frequently, as events dictate. See additional discussion of impairment testing under “Impairment of Long-Lived Assets” below. The Company’s other intangible assets with indefinite lives, including trademarks and tradenames and in-place distributor networks, are not amortized but are also tested for impairment annually, or more frequently, as events dictate. The Company’s other intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets are amortized straight-line over the following estimated useful lives:
 
Useful lives
Patents
3-20 years
Engineering drawings
3-15 years
Customer relationships
10 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 are then depreciated. 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 estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. 
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 20
Computer hardware and software
2 - 10
Rental cranes
5 - 15

Property, plant and equipment also include cranes accounted for as operating leases. Equipment accounted for as operating leases includes equipment leased directly to the customer and equipment for which the Company has assisted in the financing arrangement, whereby it has guaranteed more than insignificant residual value or made a buyback commitment. 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 so that the net book value at the end of the period equals the buyback amount or the residual value amount. The amount of buyback and rental equipment included in property, plant and equipment amounted to $57.9 million and $69.4 million, net of accumulated depreciation, at December 31, 2016 and 2015, respectively.
Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC Topic 360-10-5.  ASC Topic 360-10-5 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.
For property, plant and equipment and other long-lived assets, other than goodwill and other indefinite lived intangible assets, the Company performs undiscounted operating cash flow analysis to determine impairments. If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the fair value to the net book value of the assets.  Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell.
Historically, the annual goodwill impairment testing was performed during the second quarter. The Company performed this test during the second quarter with no impairment. Subsequent to the impairment test performed during the second quarter, the Company moved the annual test to the fourth quarter on a prospective basis in order to align more closely to its internal forecasting cycle. Based on the results of that test, no impairment was indicated. The Company tests for impairment of goodwill annually according to a two-step approach. In the first step, the Company estimates the fair values of its reporting units using the present value of future cash flows approach, subject to a comparison for reasonableness to its market capitalization at the date of valuation. If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit used in the first step less the fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair market 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. 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.
Warranties Estimated 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.
Environmental Liabilities The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Such accruals are adjusted as information develops or circumstances change.  Costs of long-term expenditures for environmental remediation obligations are discounted to their present value when the timing of cash flows are estimable.
Product Liabilities The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions when losses are probable and reasonably estimable. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company’s best judgment and 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 (collectively referred to as IBNR) utilizing actuarially developed estimates.
Foreign Currency Translation The financial statements of the Company’s non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items. Resulting translation adjustments are recorded to Accumulated Other Comprehensive Income (AOCI) as a component of Manitowoc stockholders’ equity.
Derivative Financial Instruments and Hedging Activities The Company has written 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 Topic 815-10, “Derivatives and Hedging.” The fair values of all derivatives are recorded in the Consolidated Balance Sheets. The change in a derivative’s fair value is recorded each period in current earnings or AOCI depending on whether the derivative is designated and qualifies as a cash flow hedge transaction.
During 2016, 2015 and 2014, minimal amounts were recognized in earnings due to ineffectiveness of certain commodity hedges. 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, commodity contracts and interest rate contracts designated as cash flow hedges, net of income taxes.
Cash Flow Hedges 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, commodity contracts and interest rate contracts, respectively.  These instruments are designated as cash flow hedges in accordance with ASC Topic 815-10 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.
Fair Value Hedges The Company periodically enters into interest rate swaps designated as a hedge of the fair value of a portion of its fixed rate debt. These hedges effectively result in changing a portion of its fixed rate debt to variable interest rate debt. Both the swaps and the debt are recorded in the Consolidated Balance Sheets at fair value. The change in fair value of the swaps should exactly offset the change in fair value of the hedged debt, with no net impact to earnings. Interest expense of the hedged debt is recorded at the variable rate in earnings. See Note 11, “Debt” for further discussion of fair value hedges.
The Company selectively hedges cash inflows and outflows that are subject to foreign currency exposure from the date of transaction to the related payment date. The hedges for these foreign currency accounts receivable and accounts payable are recorded in the Consolidated Balance Sheets at fair value. Gains or losses due to changes in fair value are recorded as an adjustment to earnings in the Consolidated Statements of Operations.
Stock-Based Compensation The Company recognizes expense for all stock-based compensation with graded vesting on a straight-line basis over the vesting period of the entire award. Stock-based compensation plans are described more fully in Note 16, “Stock-Based Compensation.”
Revenue Recognition Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered. Shipping and handling fees are reflected in net sales, and shipping and handling costs are reflected in cost of sales in the Consolidated Statements of Operations.
The Company enters into transactions with customers that provide for residual value guarantees and buyback commitments on certain transactions. The Company records transactions which it provides significant residual value guarantees and any buyback commitments as operating leases. Net revenues in connection with the initial transactions are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the customer’s third party financing agreement.  See Note 19, “Guarantees.”
The Company also leases cranes to customers under operating lease terms. Revenue from operating leases is recognized ratably over the term of the lease, and leased cranes are depreciated over their estimated useful lives.
Research and Development Research and development costs are charged to expense as incurred and amounted to $44.5 million, $57.6 million and $56.4 million for the years ended December 31, 2016, 2015 and 2014, 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.
Earnings Per Share Basic earnings per share is computed by dividing net earnings attributable to Manitowoc by the weighted average number of common shares outstanding during each year or period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding is increased to include shares of restricted stock, performance shares and the number of additional shares that would have been outstanding if stock options were exercised and the proceeds from such exercise were used to acquire shares of common stock at the average market price during the year or period.
Comprehensive Income (Loss) Comprehensive income (loss) includes, in addition to net earnings, 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.
Concentration of Credit Risk Credit extended to customers through trade accounts receivable potentially subjects the Company to risk.  This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas. However, a significant amount of the Company’s receivables are with distributors and contractors in the construction industry, customers servicing the U.S. steel industry and government agencies. The Company currently does not foresee a significant credit risk associated with these individual groups of receivables but continues to monitor the exposure, if any.
Recent Accounting Changes and Pronouncements
In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment.” This ASU simplifies the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In November 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” The amendments of this ASU address the diversity of presentation of restricted cash by requiring a statement of cash flows to explain the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 will be effective for fiscal years beginning after December 15, 2017. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In October 2016, the FASB issued ASU No. 2016-16 - “Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory,” which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06 will be effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.
In August 2016, the FASB issued ASU No. 2016-15 - “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice and affects all entities required to present a statement of cash flows under Topic 230. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09 - “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This was further clarified with technical corrections issued within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, and ASU 2016-20. The new revenue recognition guidance was issued to provide a single, comprehensive revenue recognition model for all contracts with customer. Under the new guidance, an entity will recognize revenue to depict the transfer of promised goods or services to customer at an amount that the entity expects to be entitled to in exchange for those goods or services. A five step model has been introduced for an entity to apply when recognizing revenue. The new guidance also includes enhanced disclosure requirements, and is effective January 1, 2018, with early adoption permitted as of January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statement of Changes in Stockholder's Equity. Manitowoc plans to adopt the new guidance effective January 1, 2018 utilizing the modified retrospective approach and is in the process of evaluating the financial impact of the adoption on its financial statements. The Company expects to conclude its assessment on the impact of adoption in the first half of 2017.
In March 2016, the FASB issued ASU 2016-09 - “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This update is part of the Simplification Initiative, and its objective is to identify, evaluate and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving usefulness of the information provided to users of financial statements. The update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The effective date for this ASU is for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.
In March 2016, the FASB issued ASU No. 2016-06 - “Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments.” The amendments clarify the steps required to assess whether a call or put option meets the criteria for bifurcation as an embedded derivative. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02 - “Leases”, which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In January 2016, the FASB issued ASU 2016-01 - “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. Most significantly, ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of an investee) to be measured at fair value with changes in fair value recognized in net income (loss). ASU 2016-01 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In August 2015, the FASB issued ASU No. 2015-15 - “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This update clarifies the guidance related to accounting for debt issuance costs related to line-of-credit arrangements. In April 2015, the FASB issued ASU 2015-03, which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability; see further discussion of ASU 2015-03 below. The guidance in ASU 2015-03 did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The guidance was applied on a retrospective basis. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In July 2015, the FASB issued ASU No. 2015-11 - “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This update changes the guidance on accounting for inventory accounted for on a first-in first-out (FIFO) basis. Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out (LIFO) basis. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.
In April 2015, the FASB issued ASU No. 2015-05 - “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This update provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In April 2015, the FASB issued ASU No. 2015-03 - “Simplifying the Presentation of Debt Issuance Costs.” To simplify the presentation of debt issuance costs, this update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, rather than as a deferred asset. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments in this ASU effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The guidance is applied on a retrospective basis. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In February 2015, the FASB issued ASU No. 2015-02 - “Consolidation (Topic 820)—Amendments to the Consolidation Analysis.” This update amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In January 2015, the FASB issued ASU No. 2015-01 - “Income Statement—Extraordinary and Unusual Items.” This update eliminates from GAAP the concept of extraordinary items. ASU 2015-01 is effective for the first interim period within fiscal years beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements-Going Concern.” This ASU provided guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective in the first annual period ending after December 15, 2016, with early adoption permitted. The adoption of this guidance did not have a material impact on our consolidated financial statements.
Discontinued Operations
Discontinued Operations
Discontinued Operations
On March 4, 2016, Manitowoc completed the Spin-Off of MFS. The financial results of MFS are presented as income (loss) from discontinued operations, net of income taxes in the Consolidated Statements of Operations. Concurrent with the Spin-Off, the Company received a $1,361.7 million dividend from MFS. The following table presents the financial results of MFS through the date of the Spin-Off for the indicated periods and do not include corporate overhead allocations:
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS
 
 
 
 
 
 
(in millions)
 
2016
 
2015
 
2014
Net sales
 
$
219.6

 
$
1,570.1

 
$
1,581.3

 
 
 
 
 
 
 
Cost of sales
 
141.5

 
1,065.6

 
1,070.7

Engineering, selling and administrative expenses
 
48.3

 
271.3

 
284.2

Amortization of intangible assets
 
5.2

 
31.4

 
31.8

Asset impairment expense
 

 
9.0

 
1.1

Restructuring expense
 
0.3

 
4.6

 
2.5

Separation expense
 
27.7

 
39.4

 

Other
 

 
0.9

 
0.4

Total operating costs and expenses
 
223.0

 
1,422.2

 
1,390.7

Operating (loss) income
 
(3.4
)
 
147.9

 
190.6

Other (expense) income
 
(2.2
)
 
23.4

 
(1.7
)
(Loss) income from discontinued operations before income taxes
 
(5.6
)
 
171.3

 
188.9

Provision for taxes on income
 
0.6

 
35.9

 
26.5

(Loss) income from discontinued operations, net of income taxes (1)
 
$
(6.2
)
 
$
135.4

 
$
162.4

 
(1)
For the year ended December 31, 2016, 2015 and 2014, the Company recorded net (losses) income of $(1.0) million, $0.0 million and $(1.0) million, respectively, from various other businesses disposed of prior to 2014. This is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the businesses operated as stand-alone entities.
No assets or liabilities of MFS are reflected on the Company's Consolidated Balance Sheet as of December 31, 2016. The assets and liabilities of MFS have been classified as discontinued operations and are reflected as such on the Company's Consolidated Balance Sheet as of December 31, 2015. These amounts consisted of the following carrying amounts in each major class at December 31, 2015:
Carrying amounts of major classes of assets and liabilities included as part of discontinued operations related to MFS
 
 
(in millions)
 
 
December 31,
2015
Assets
 
 
 
Cash and cash equivalents
 
 
$
31.9

Restricted cash
 
 
0.6

Accounts receivable - net
 
 
63.8

Inventories - net
 
 
145.9

Other current assets
 
 
12.0

Property, plant and equipment - net
 
 
116.3

Goodwill
 
 
845.8

Other intangible assets - net
 
 
519.5

Other non-current assets
 
 
16.2

Long-term assets held for sale
 
 
3.7

Total major classes of assets of discontinued operations
 
 
$
1,755.7

 
 
 
 
Liabilities
 
 
 
Accounts payable and accrued expenses
 
 
$
271.6

Current portion of long-term debt
 
 
0.4

Other current liabilities
 
 
40.0

Long-term debt
 
 
2.3

Deferred income taxes
 
 
167.9

Pension obligation
 
 
29.3

Postretirement health and other benefit obligations
 
 
3.0

Other non-current liabilities
 
 
17.3

Total major classes of liabilities of discontinued operations
 
 
$
531.8


Manitowoc and MFS entered into several agreements in connection with the separation, including a transition services agreement (“TSA”), separation and distribution agreement, tax matters agreement, intellectual property matters agreement and an employee matters agreement.
Pursuant to the TSA, Manitowoc, MFS and their respective subsidiaries are providing various services to each other on an interim, transitional basis. Services being provided by Manitowoc include, among others, finance, information technology and certain other administrative services. The services generally commenced on March 4, 2016, and are expected to terminate within 12 months of that date. Billings by Manitowoc under the TSA are recorded as a reduction of the costs to provide the respective service in the applicable expense category.
During the twelve months ended December 31, 2016 and 2015, the Company recorded $27.7 million and $39.4 million, respectively, of separation costs related to the Spin-Off. Separation costs consist primarily of professional and consulting fees, and are included in the results of discontinued operations.
During the first quarter of 2014, the Company sold its 50% interest in Manitowoc Dong Yue, a consolidated entity, which produces mobile and truck-mounted hydraulic cranes in China, to its joint venture partner, Tai’an Taishan Heavy Industry Investment Co., Ltd. Consequently, the joint venture has been classified as discontinued operations in the Company’s financial statements. In connection with the sale, the Company agreed to forgive all loans and accrued interest owed by Manitowoc Dong Yue to the Company and its affiliates and paid an additional $7.2 million to Manitowoc Dong Yue for a portion of debt the joint venture had outstanding with third parties. After this payment, Manitowoc Dong Yue owed approximately $17.3 million to the Company. The loan is secured by certain of Manitowoc Dong Yue’s fixed assets, as well as finished goods inventory. Manitowoc Dong Yue is repaying the loan over a four-year period, with the last payment due on December 31, 2017. As of December 31, 2016, the outstanding balance was $14.2 million.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and 2015 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, 2016
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current Assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
0.2

 
$

 
$
0.2

Commodity contracts
 

 
0.2

 

 
0.2

Total current assets at fair value
 
$

 
$
0.4

 
$

 
$
0.4


 
 
 
 
 
 
 
 
Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
1.0

 
$

 
$
1.0

Total current liabilities at fair value
 
$

 
$
1.0

 
$

 
$
1.0

 
 
Fair Value as of December 31, 2015
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current Assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
0.3

 
$

 
$
0.3

Total current assets at fair value
 
$

 
$
0.3

 
$

 
$
0.3


 
 
 
 
 
 
 
 
Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
1.1

 
$

 
$
1.1

Commodity contracts
 

 
0.7

 

 
0.7

Interest rate swap contracts: Float-to-fixed
 

 
1.7

 

 
1.7

Total current liabilities at fair value
 
$

 
$
3.5

 
$

 
$
3.5


 
 
 
 
 
 
 
 
Non-current Liabilities:
 
 

 
 

 
 

 
 

Interest rate swap contracts: Float-to-fixed
 
$

 
$
0.6

 
$

 
$
0.6

Foreign currency exchange contract
 

 
0.1

 

 
0.1

Total non-current liabilities at fair value
 
$

 
$
0.7

 
$

 
$
0.7

On March 3, 2016, the Company redeemed the then-outstanding 2020 Notes and 2022 Notes using proceeds from the newly issued 2021 Notes. The fair value of the Company’s 2021 Notes was approximately $282.2 million as of December 31, 2016. The fair value of the Company’s 2020 Notes and 2022 Notes was approximately $623.1 million and $310.6 million, respectively, as of December 31, 2015. The fair values of the Company’s term loans under its Prior Senior Credit Facility, respectively, were as follows as of December 31, 2015:  Term Loan A — $307.7 million and Term Loan B — $116.7 million. The Prior Senior Credit Facility was terminated on March 3, 2016. See Note 11, “Debt,” for a description of the debt instruments and their related carrying values.
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 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 Term Loans and Senior Notes based on quoted market prices of the instruments; because these markets are typically thinly traded, the liabilities are classified as Level 2 within the valuation hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, deferred purchase price notes on receivables sold (see Note 12, “Accounts Receivable Securitization”) and short-term variable debt, including any amounts outstanding under our revolving credit facility, approximate fair value, without being discounted as of December 31, 2016 and December 31, 2015 due to the short-term nature of these instruments.
As a result of its global operating and financing activities, the Company is exposed to market risks from changes in interest rates, foreign currency exchange rates, and commodity prices, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes these risks through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes, and the Company does not use leveraged derivative financial instruments. The foreign currency exchange, interest rate, and commodity 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.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
The Company’s risk management objective is to ensure that business exposures to risks that have been identified and measured and are capable of being controlled, are minimized using the most effective and efficient methods to eliminate, reduce, or transfer such exposures.  Operating decisions consider these associated risks and structure transactions to avoid these risks whenever possible.
Use of derivative instruments is consistent with the overall business and risk management objectives of the Company. Derivative instruments may be used to manage business risk within limits specified by the Company’s risk policy and manage exposures that have been identified through the risk identification and measurement process, provided that they clearly qualify as “hedging” activities as defined in the risk policy.  Use of derivative instruments is not automatic, nor is it necessarily the only response to managing pertinent business risk.  Use is permitted only after the risks that have been identified are determined to exceed defined tolerance levels and are considered to be unavoidable.
The primary risks managed by the Company by using derivative instruments are commodity price risk and foreign currency exchange risk. Interest rate derivative instruments were utilized in prior years to help manage interest rate risk.  Swap contracts on various commodities are entered into to help manage the price risk associated with forecasted purchases of materials used in the Company’s manufacturing process.  The Company also enters into various foreign currency derivative instruments to help manage foreign currency risk associated with the Company’s projected purchases and sales and foreign currency denominated receivable and payable balances.
ASC Topic 815-10 requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the statement of financial position.  In accordance with ASC Topic 815-10, the Company designates commodity swaps, foreign currency exchange contracts, and float-to-fixed interest rate derivative contracts as cash flow hedges of forecasted purchases of commodities and currencies, and variable rate interest payments.  Also in accordance with ASC Topic 815-10, the Company designates fixed-to-float interest rate swaps as fair market value hedges of fixed rate debt, which synthetically swaps the Company’s fixed rate debt to floating rate debt.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.  Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in current earnings.  In the next twelve months, the Company estimates $0.6 million of unrealized losses, net of tax, related to commodity price and currency rate hedging will be reclassified from other comprehensive income into earnings.  Foreign currency and commodity hedging is generally completed prospectively on a rolling basis for twelve and twenty-four months, respectively, depending on the type of risk being hedged.
The Company previously had interest rate hedges related to its senior notes. The risk management objective for the Company’s fair market value interest rate hedges was to effectively change the amount of the underlying debt equal to the notional value of the hedges from a fixed to a floating interest rate based on the one-month LIBOR rate.  These swaps included an embedded call feature to match the terms of the call schedule embedded in the Senior Notes. Changes in the fair value of the interest rate swaps were expected to offset changes in the fair value of the debt due to changes in the one-month LIBOR rate.
As of December 31, 2016, the Company had the following outstanding commodity swap and currency forward contracts that were entered into as hedges of forecasted transactions:
Designated Hedging Instruments
 
 
 
 
 
 
Commodity
 
Units Hedged
 
Unit
 
Type
Natural Gas
 
26,807
 
MMBtu
 
Cash Flow
Steel
 
3,190
 
Short Tons
 
Cash Flow

Designated Hedging Instruments
 
 
 
Currency
 
Units Hedged
 
Type
Australian Dollar
 
611,143

 
Cash Flow
European Euro
 
9,834,120

 
Cash Flow
South Korean Won
 
218,408,100

 
Cash Flow
Singapore Dollar
 
900,000

 
Cash Flow
United States Dollar
 
2,311,697

 
Cash Flow
Japanese Yen
 
65,502,800

 
Cash Flow

The Company has been party to various fixed-to-float interest rate swaps designated as fair market value hedges of its Senior Notes.  In the third quarter of 2012, the Company monetized the derivative asset related to its fixed-to-float interest rate swaps related to its 2018 and 2020 Notes and received $14.8 million in the quarter. The gain was treated as an increase to the debt balances for the 2018 and 2020 Notes and was being amortized against interest expense over the life of the original swap. Subsequently, the Company entered into new interest rate swaps due in 2020 and 2022, designating them as fair market value hedges of the 2020 and 2022 Notes, respectively.
As of December 31, 2014, the Company had $75.0 million and $125.0 million notional amount of fixed-to-float interest rate swaps outstanding related to the 2020 and 2022 Notes, respectively, which were designated as fair value hedges.
In April 2015, the Company monetized the derivative liability related to $75.0 million notional amount of its fixed-to-float interest rate swaps related to the 2020 Notes and $45.0 million notional amount of its fixed-to-float interest rate swaps related to the 2022 Notes. The loss on the monetization of these swaps of $0.7 million was treated as a decrease to the debt balances for the 2020 Notes and 2022 Notes, and was amortized against interest expense over the life of the original swaps.
In September 2015, the Company monetized the derivative liability related to the remaining $80.0 million notional of its fixed-to-float interest rate swaps related to the 2022 Notes. The loss on monetization of these swaps of $0.5 million was treated as a decrease to the debt balances and 2022 Notes, and was amortized against interest expense over the life of the original swaps.
The Company redeemed the 2020 and 2022 Notes on March 3, 2016. The then outstanding net gain from the monetization of fixed-to-float swaps due 2020 and 2022 was amortized to interest income. See Note 11, “Debt,” for more information.
As of December 31, 2016, the Company had no outstanding fixed-to-float interest rate swaps related to the Senior Notes due 2021.
For derivative instruments that are not designated as hedging instruments under ASC Topic 815-10, the gains or losses on the derivatives are recognized in current earnings within other (expense) income, net in the Consolidated Statement of Operations. As of December 31, 2016, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
Non Designated Hedging Instruments
 
 
 
 
 
Currency
 
Units Hedged
 
 
Recognized Location
 
Purpose
European Euro
 
10,502,111
 
 
Other (expense) income, net
 
Accounts payable and receivable settlement
United States Dollar
 
15,318,000
 
 
Other (expense) income, net
 
Accounts payable and receivable settlement

The fair value of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet as of December 31, 2016 was as follows:
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$
0.1

Commodity contracts
Other current assets
0.2

Total derivatives designated as hedging instruments
 
$
0.3

 
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives NOT designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$
0.1

Total derivatives NOT designated as hedging instruments
 
$
0.1

 
 
 

Total asset derivatives
 
$
0.4


The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2016 was as follows:
 
LIABILITY DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.9

Total derivatives designated as hedging instruments
 
$
0.9

 
LIABILITY DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives NOT designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.1

Total derivatives NOT designated as hedging instruments
 
$
0.1

 
 
 

Total liability derivatives
 
$
1.0


As of December 31, 2015, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions:
Designated Hedging Instruments
 
 
 
 
 
 
Commodity
 
Units Hedged
 
Unit
 
Type
Natural Gas
 
175,617
 
MMBtu
 
Cash Flow
Steel
 
4,811
 
Short Tons
 
Cash Flow
Designated Hedging Instruments
 
 
 
 
Currency
 
Units Hedged
 
Type
South Korean Won
 
1,533,257,930
 
Cash Flow
Singapore Dollar
 
1,800,000
 
Cash Flow
Japanese Yen
 
245,915,700
 
Cash Flow

For derivative instruments that are not designated as hedging instruments under ASC Topic 815-10, the gains or losses on the derivatives are recognized in current earnings within other (expense) income, net. As of December 31, 2015, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
Non Designated Hedging Instruments
 
 
 
 
Currency
 
Units Hedged
 
Recognized Location
 
Purpose
European Euro
 
20,490,320
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
United States Dollar
 
17,321,106
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
Japanese Yen
 
70,518,463
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
Singapore Dollar
 
500,000
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
British Pound Sterling
 
4,840,238
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement

The fair value of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet as of December 31, 2015 was as follows:
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$
0.3

Total derivatives designated as hedging instruments
 
$
0.3

 
ASSET DERIVATIVES
 (in millions)
Balance Sheet Location
Fair Value
Derivatives NOT designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$

Total derivatives NOT designated as hedging instruments
 
$

 
 
 

Total asset derivatives
 
$
0.3


The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2015 was as follows:
 
LIABILITY DERIVATIVES
 (in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.2

Commodity contracts
Accounts payable and accrued expenses
0.7

Interest rate swap contracts: Float-to-fixed
Accounts payable and accrued expenses
1.7

Foreign exchange contracts
Other non-current liabilities
0.1

Interest rate swap contracts: Float-to-fixed
Other non-current liabilities
0.6

Total derivatives designated as hedging instruments
 
$
3.3

 
 
LIABILITY DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives NOT designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.9

Total derivatives NOT designated as hedging instruments
 
$
0.9

 
 
 

Total liability derivatives
 
$
4.2

Inventories
Inventories
Inventories
The components of inventories at December 31, 2016 and December 31, 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Raw materials
 
$
109.3

 
$
155.3

Work-in-process
 
88.4

 
116.3

Finished goods
 
270.9

 
251.7

Total inventories — gross
 
468.6

 
523.3

Excess and obsolete inventory reserve
 
(39.6
)
 
(34.1
)
Net inventories
 
$
429.0

 
$
489.2


As described in Note 2, in the fourth quarter of 2016, the Company elected to change its method of accounting for certain inventory in the U.S. from LIFO to FIFO. The Company applied this change in method of inventory costing by retrospectively adjusting the prior period financial statements. As a result of the retrospective adjustment of the change in accounting principle, certain amounts in the Company's consolidated financial statements for the years ended December 31, 2015 and 2014 were adjusted as follows:
For the years ended December 31,
 
 
 
2015
 
 
 
 
 
2014
 
 
 
 
Impact of Change
 
Impact of Change
In millions (except per share data)
 
Historical
 
to FIFO
 
As adjusted
 
Historical
 
to FIFO
 
As adjusted
Cost of sales
 
$
1,537.0

 
$
(3.5
)
 
$
1,533.5

 
$
1,837.6

 
$
0.4

 
$
1,838.0

Operating (loss) income
 
(15.9
)
 
3.5

 
(12.4
)
 
107.5

 
(0.4
)
 
107.1

Loss from continuing operations before taxes
 
(114.5
)
 
3.5

 
(111.0
)
 
(20.0
)
 
(0.4
)
 
(20.4
)
Benefit for income taxes
 
(42.6
)
 
1.5

 
(41.1
)
 
(18.0
)
 
0.2

 
(17.8
)
Loss from continuing operations
 
(71.9
)
 
2.0

 
(69.9
)
 
(2.0
)
 
(0.6
)
 
(2.6
)
Net (loss) income
 
63.5

 
2.0

 
65.5

 
148.4

 
(0.6
)
 
147.8

Net (loss) income attributable to Manitowoc common shareholders
 
63.5

 
2.0

 
65.5

 
144.5

 
(0.6
)
 
143.9

Basic (loss) income per share from continuing operations
 
(0.53
)
 
0.02

 
(0.51
)
 
(0.04
)
 
(0.01
)
 
(0.05
)
Diluted (loss) income per share from continuing operations
 
(0.53
)
 
0.02

 
(0.51
)
 
(0.04
)
 
(0.01
)
 
(0.05
)
The Consolidated Balance Sheet for the year ended December 31, 2015 was adjusted as follows:
 
 
Impact of Change
In millions
 
Historical
 
to FIFO
 
As adjusted
Inventories
 
$
452.6

 
$
36.6

 
$
489.2

Other non-current assets
 
191.2

 
(13.8
)
 
177.4

Retained earnings
 
539.5

 
22.8

 
562.3

The Consolidated Statements of Cash Flows for the years ended December 31, 2015 and 2014 were adjusted as follows:
For the years ended December 31,
 
 
 
2015
 
 
 
 
 
2014
 
 
 
 
Impact of Change
 
Impact of Change
In millions
 
Historical
 
to FIFO
 
As adjusted
 
Historical
 
to FIFO
 
As adjusted
Net (loss) income
 
$
63.5

 
$
2.0

 
$
65.5

 
$
148.4

 
$
(0.6
)
 
$
147.8

Deferred income taxes
 
(5.9
)
 
1.5

 
(4.4
)
 
11.3

 
0.2

 
11.5

Change in inventories, net
 
(3.7
)
 
(3.5
)
 
(7.2
)
 
32.2

 
0.4

 
32.6


The tables above present selected financial information “as adjusted for impact of change to FIFO” and “historical,” which represents the results of operations prior to the change to FIFO but after the classification of MFS to discontinued operations.
See Note 23, “Quarterly Financial Data (Unaudited),” for the impact of the change to FIFO on selected quarterly data.
Notes Receivable Notes Receivable
Notes Receivable
Notes Receivable
Notes receivable balances as of December 31, 2016 and 2015, consisted primarily of amounts due to the Company's captive finance company in China, as well as the note receivable related to the sale of Manitowoc Dong Yue in 2014. As of December 31, 2016, the Company had current and long-term notes receivable in the amount of $62.4 million and $21.1 million, respectively. As of December 31, 2015, the Company had current and long-term notes receivable in the amount of $65.1 million and $56.7 million, respectively. Long-term notes receivable are included within other long-term assets on the Consolidated Balance Sheet. The collection of scheduled and past due payments resulted in a decrease in outstanding notes receivable.
Property, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment
The components of property, plant and equipment at December 31, 2016 and December 31, 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Land
 
$
23.6

 
$
23.7

Building and improvements
 
225.0

 
218.7

Machinery, equipment and tooling
 
292.6

 
274.4

Furniture and fixtures
 
16.7

 
16.6

Computer hardware and software
 
126.0

 
132.4

Rental cranes
 
89.0

 
99.5

Construction in progress
 
16.7

 
81.0

Total cost
 
789.6

 
846.3

Less accumulated depreciation
 
(480.8
)
 
(435.6
)
Property, plant and equipment-net
 
$
308.8

 
$
410.7


In the twelve months ended December 31, 2016, the Company recorded $96.9 million in asset impairment charges. See additional discussion of impairments in Note 20, “Restructuring and Asset Impairments.”
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
The changes in carrying amount of goodwill for the years ended December 31, 2016 and December 31, 2015 are as follows:
(in millions)
 
 
2016
 
2015
Gross balance as of January 1,
 
 
$
306.5

 
$
325.3

Foreign currency impact
 
 
(6.9
)
 
(18.8
)
Net balance as of December 31,
 
 
$
299.6

 
$
306.5


The Company accounts for goodwill and other intangible assets under the guidance of ASC Topic 350, “Intangibles — Goodwill and Other.” The Company performs impairment reviews for goodwill and indefinite-lived intangible assets using a fair-value method based on the present value of future cash flows, which involves management’s judgments and assumptions about the amounts of those cash flows and the discount rates used. The estimated fair value is then compared with the carrying amount of the reporting unit, including recorded goodwill, or indefinite-lived intangible asset. The intangible asset is then subject to risk of write-down to the extent that the carrying amount exceeds the estimated fair value.
Historically, the annual goodwill and indefinite-lived assets impairment testing was performed during the second quarter. The Company performed this test during the second quarter with no impairment. Subsequent to the impairment test performed during the second quarter, the Company moved the annual test to the fourth quarter on a prospective basis in order to align more closely to its internal forecasting cycle. Based on the results of that test, no impairment was indicated. The Company will continue to monitor changes in circumstances and test more frequently if those changes indicate that assets might be impaired.
The cranes business provides engineered lifting products that are used in a wide variety of applications, including energy and utilities, petrochemical and industrial projects, infrastructure development such as road, bridge and airport construction, and commercial and high-rise residential construction. The decline in oil prices, as well as uncertainty in global macroeconomic factors related to infrastructure and construction has caused the Company's customers to defer or reduce capital spending.
A considerable amount of management judgment and assumptions are required in performing the impairment test, principally in determining the fair value of the reporting unit. While the Company believes the judgments and assumptions are reasonable, different assumptions could change the estimated fair value and, therefore, 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 gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill are as follows as of December 31, 2016 and December 31, 2015.
 
 
December 31, 2016
 
December 31, 2015
(in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
Trademarks and tradenames
 
$
92.4

 
$

 
$
92.4

 
$
94.2

 
$

 
$
94.2

Customer relationships
 
10.3

 
(7.8
)
 
2.5

 
10.4

 
(7.1
)
 
3.3

Patents
 
28.5

 
(27.4
)
 
1.1

 
29.1

 
(26.6
)
 
2.5

Engineering drawings
 
10.0

 
(9.9
)
 
0.1

 
10.2

 
(9.3
)
 
0.9

Distribution network
 
18.0

 

 
18.0

 
18.4

 

 
18.4

Other intangibles
 
0.2

 
(0.2
)
 

 
0.3

 
(0.3
)
 

 
 
$
159.4

 
$
(45.3
)
 
$
114.1

 
$
162.6

 
$
(43.3
)
 
$
119.3


Amortization of intangible assets for the years ended December 31, 2016, 2015 and 2014 was $3.0 million, $3.0 million and $3.3 million, respectively.  Excluding the impact of any future acquisitions, divestitures or impairments, the Company anticipates amortization will be approximately $2 million in 2017 and approximately $0.4 million per year through 2021.
Accounts Payable and Accrued Expenses
Accounts Payable and Accrued Expenses
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses at December 31, 2016 and December 31, 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Trade accounts payable
 
$
157.7

 
$
268.5

Employee related expenses
 
28.1

 
35.0

Accrued vacation
 
21.8

 
25.1

Miscellaneous accrued expenses
 
113.6

 
107.7

 
 
$
321.2

 
$
436.3

Debt
Debt
Debt
Outstanding debt at December 31, 2016 and December 31, 2015 is summarized as follows:
(in millions)
 
2016
 
2015
Term loan A
 
$

 
$
312.8

Term loan B
 

 
119.5

Senior notes due 2020
 

 
613.1

Senior notes due 2022
 

 
299.2

Senior notes due 2021
 
249.8

 

Other
 
35.7

 
66.3

Deferred financing costs
 
(4.0
)
 
(13.3
)
Total debt
 
281.5

 
1,397.6

Less current portion and short-term borrowings
 
(12.4
)
 
(67.2
)
Long-term debt
 
$
269.1

 
$
1,330.4

 
On March 3, 2016, the Company entered into a $225.0 million Asset Based Revolving Credit Facility (as amended, the “ABL Revolving Credit Facility”) with Wells Fargo Bank, N.A. as administrative agent, and JP Morgan Chase Bank, N.A. and Goldman Sachs Bank USA as joint lead arrangers. The ABL Revolving Credit Facility capacity calculation is defined in the Agreement and dependent on the fair value of inventory and fixed assets of the Loan Parties, which secure the borrowings. The ABL Revolving Credit Facility has a term of 5 years, and includes a $75.0 million Letter of Credit sublimit, $10.0 million of which can be applied to the German borrower.
As of December 31, 2016, the Company did not have any borrowings outstanding on the ABL Revolving Credit Facility. During the year ended December 31, 2016, the highest daily borrowing was $30.0 million and the average borrowing was $8.1 million, while the average annual interest rate was 2.51%. The interest rate of the ABL Revolving Credit Facility fluctuates based on excess availability.  As of December 31, 2016, the spreads for LIBOR and Prime borrowings were 1.50% and 0.50%, respectively, with excess availability of approximately $144.0 million, which represents revolver borrowing capacity of $160.4 million less U.S. letters of credit outstanding of $16.4 million.
The ABL Revolving Credit Facility replaced the $1,050.0 million Third Amended and Restated Credit Agreement (the “Prior Senior Credit Facility”), which was entered into on January 3, 2014. The Prior Senior Credit Facility included three different loan facilities. The first was a revolving facility in the amount of $500.0 million, with a term of five years. The second facility was a Term A Loan in the aggregate amount of $350.0 million, with a term of five years. The third facility was a Term B Loan in the amount of $200.0 million, with a term of seven years.
Prior to termination of the Prior Senior Credit Facility in March 2016, the highest daily borrowing was $234.0 million, the average borrowing was $117.4 million, and the average annual interest rate was 3.5%.
As of December 31, 2015, the Company had outstanding $175.0 million notional amount of float-to-fixed interest rate swaps outstanding related to Term Loan A under the Prior Senior Credit Facility that were designated as cash flow hedges. In 2016, these swaps were terminated along with the Prior Senior Credit Facility resulting in a loss of $5.9 million related to the write-off of deferred financing expenses and $4.3 million related to termination of interest rate swaps.
On February 18, 2016, the Company entered into an indenture with Wells Fargo Bank, N.A., as trust and collateral agent, and completed the sale of $260.0 million aggregate principal amount of its 12.750% Senior Secured Second Lien Notes due August 15, 2021 (the “2021 Notes”). Interest on the 2021 Notes is payable semi-annually in February and August of each year. The 2021 Notes were sold pursuant to exemptions from registration under the Securities Act of 1933.
Both the ABL Revolving Credit Facility and 2021 Notes include customary covenants and events of default which include, without limitation, restrictions on indebtedness, capital expenditures, restricted payments, disposals, investments and acquisitions.
Additionally, the ABL Revolving Credit Facility contains a Fixed Charge Coverage springing financial covenant, which measures the ratio of (i) consolidated earnings before interest, taxes, depreciation, amortization and other adjustments as defined in the credit agreement, to (ii) fixed charges, as defined in the related credit agreement. The financial covenant is triggered only if the Company fails to maintain minimum levels of availability under the credit facility. If triggered, the Company must maintain a Minimum Fixed Charge Coverage Ratio of 1.00 to 1.
In October 2016, the ABL Revolving Credit Facility was amended to accommodate certain previously restricted activities related to the relocation of its manufacturing operations from Manitowoc, Wisconsin to Shady Grove, Pennsylvania as announced during the third quarter of 2016. Among other things, the amendment will allow the Company to transfer, sell and/or impair fixed assets located at the Manitowoc, Wisconsin facility with limited impact on the availability under the facility.
As of December 31, 2016, the Company had no outstanding fixed-to-float interest rate swaps related to the 2021 Notes.
On March 3, 2016, the Company redeemed its 8.50% Senior Notes due 2020 (the “Prior 2020 Notes”) and 5.875% Senior Notes due 2022 (the “Prior 2022 Notes”) for $625.5 million and $330.5 million, or 104.250% and 110.167% as expressed as a percentage of the principal amount, respectively.
The redemption of the Prior 2020 Notes resulted in a loss on debt extinguishment of $31.5 million during the first quarter of 2016 and consisted of $24.6 million related to redemption premium and $6.9 million related to write-off of deferred financing fees. Previously monetized derivative assets related to fixed-to-float interest rate swaps were treated as an increase to the debt balance of the Prior 2020 Notes and were being amortized to interest expense over the life of the original swap. As a result of the redemption, the remaining monetization balance of $11.8 million as of March 3, 2016 was amortized as a reduction to interest expense during the first quarter of 2016.
The redemption of the Prior 2022 Notes resulted in a loss on debt extinguishment of $34.6 million during the first quarter of 2016 and consisted of $31.2 million related to redemption premium and $3.4 million related to write-off of deferred financing fees. Previously, derivative liabilities related to termination of fixed-to-float swaps were treated as a decrease to the debt balance of the Prior 2022 Notes and were being amortized to interest expense over the life of the original swap. As a result of the redemption, the remaining balance of $0.7 million as of March 3, 2016 was amortized as an increase to interest expense during the first quarter of 2016.
Outstanding balances under the Company's Prior Senior Credit Facility and Prior 2020 and Prior 2022 Notes were repaid with proceeds from the 2021 Notes and a cash dividend from MFS in conjunction with the Spin-Off.
The balance sheet values of the Senior Notes as of December 31, 2016 and December 31, 2015 are not equal to the face value of the Senior Notes because of gains (losses) of previously terminated fixed-to-float interest rate hedges and original issue discounts included in the applicable balance sheet values (see Note 5, “Derivative Financial Instruments,” of the Consolidated Financial Statements for more information).
As of December 31, 2016, the Company had outstanding $35.7 million of other indebtedness that has a weighted-average interest rate of approximately 5.43%.  This debt includes balances on local credit lines and capital lease obligations.
The aggregate scheduled maturities of outstanding debt obligations in subsequent years are as follows (in millions):
Year
 
 
2017
 
$
12.4

2018
 
5.8

2019
 
5.7

2020
 
3.8

2021
 
263.3

Thereafter
 
0.7

Total
 
$
291.7


The table of scheduled maturities above does not agree to the Company’s total debt as of December 31, 2016 as shown on the Consolidated Balance Sheet due to $10.2 million of OID.


As of December 31, 2016, 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 2021 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.
Accounts Receivable Securitization
Accounts Receivable Securitization
Accounts Receivable Securitization
The Company maintains an accounts receivable securitization program with a commitment size of $75.0 million, whereby transactions under the program are accounted for as sales in accordance with ASC Topic 860, “Transfers and Servicing.” 
On March 3, 2016, the Company replaced the Fifth Amended and Restated Receivables Purchase Agreement dated December 15, 2014 (“Prior RPA”) and entered into 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.
Under the RPA (and the related Purchase and Sale Agreements referenced in the RPA), the Company’s domestic trade accounts receivable are sold to MTW Funding which, in turn, sells, conveys, transfers and assigns to a third-party financial institution (“Purchaser”), all of MTW Funding's rights, title and interest in a pool of receivables to the Purchaser.
The Purchaser receives ownership of the pool of receivables in each instance. New receivables are purchased by MTW Funding and resold to the Purchaser as cash collections and reduce previously sold investments. The Company acts as the servicer (in such capacity, the “Servicer”) of the receivables and, as such, administers, collects and otherwise enforces the receivables. The Servicer is compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. The Servicer initially receives payments made by obligors on the receivables but is required to remit those payments to the Purchaser in accordance with the RPA. The Purchaser has no recourse for uncollectible receivables.
Trade accounts receivables sold to the Purchaser and being serviced by the Company totaled $19.5 million and $64.2 million as of December 31, 2016 and December 31, 2015, respectively. 
Sales of trade receivables under the program are reflected as a reduction of accounts receivable in the accompanying Consolidated Balance Sheets, and the proceeds received, including collections on the deferred purchase price notes, are included in cash flows from operating activities in the accompanying Consolidated Statements of Cash Flows.  The Company deems the interest rate risk related to the deferred purchase price notes to be de minimis, primarily because the average collection cycle of the related receivables is less than 60 days.
Due to the short collection cycle, as well as the Company’s collection history, the fair value of the Company’s deferred purchase price notes approximates book value.  The fair value of the deferred purchase price notes recorded as of December 31, 2016 and December 31, 2015 was $30.6 million and $54.1 million, respectively, and is included in accounts receivable in the accompanying Consolidated Balance Sheets.
The securitization program contains customary affirmative and negative covenants. Among other restrictions, these covenants require the Company to meet specified financial tests, which include a minimum fixed charge coverage ratio which is the same as the covenant ratio required per the ABL Revolving Credit Facility. As of December 31, 2016, the Company was in compliance with all affirmative and negative covenants inclusive of the financial covenants pertaining to the RPA, as amended. Based on management’s current plans and outlook, the Company believes it will be able to comply with these covenants during the subsequent twelve months.
The Company's Prior RPA was entered into on December 15, 2014. Under the Prior RPA (and the related Purchase and Sale Agreements referenced in the Prior RPA), the Company’s domestic trade accounts receivable were sold to U.S. Seller and certain of the Company’s non-U.S. trade accounts receivable were sold to Cayman Seller. The U.S. Seller and Cayman Seller each then sold, conveyed, transferred and assigned to a third-party financial institution (“Purchaser”), all of the right, title and interest in and to the pool of receivables to the Purchaser.
The Prior RPA was subsequently amended to make various changes; such as in the originators and servicers thereunder and in the obligations of various MFS-related entities, generally in anticipation of the Spin-Off.
Income Taxes
Income Taxes
Income Taxes
Income (loss) from continuing operations are summarized below:
(in millions)
 
2016
 
2015
 
2014
(Loss) income from continuing operations before income taxes:
 
 

 
 

 
 

Domestic
 
$
(293.0
)
 
$
(184.0
)
 
$
(93.3
)
Foreign
 
24.9

 
73.0

 
72.9

Total
 
$
(268.1
)
 
$
(111.0
)
 
$
(20.4
)

Income tax provision (benefit) from continuing operations is summarized as follows:
(in millions)
 
2016
 
2015
 
2014
Current:
 
 

 
 

 
 

Federal and state
 
$
(13.0
)
 
$
(48.6
)
 
$
(41.0
)
Foreign
 
12.1

 
11.9

 
11.7

Total current
 
$
(0.9
)
 
$
(36.7
)
 
$
(29.3
)
Deferred:
 
 

 
 

 
 

Federal and state
 
$
98.7

 
$
(8.3
)
 
$
16.7

Foreign
 
2.7

 
3.9

 
(5.2
)
Total deferred
 
$
101.4

 
$
(4.4
)
 
$
11.5

Provision (benefit) for taxes on income
 
$
100.5

 
$
(41.1
)
 
$
(17.8
)

The federal statutory income tax rate is reconciled to the Company’s effective income tax rate for continuing operations for the years ended December 31, 2016, 2015 and 2014 as follows:
 
 
2016
 
2015
 
2014
Federal income tax at statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State income provision (benefit)
 
2.3

 
5.7

 
16.5

Manufacturing & research incentives
 
2.0

 
(0.4
)
 
6.1

Taxes on foreign income which differ from the U.S. statutory rate
 
3.0

 
3.2

 
44.1

Adjustments for unrecognized tax benefits
 
(4.0
)
 
1.5

 
51.5

Adjustments for valuation allowances
 
(69.8
)
 
(8.5
)
 
(25.0
)
Spin-off tax costs
 
(1.3
)
 
(1.8
)
 

Change in assertion over permanently reinvest foreign earnings
 

 

 
(26.4
)
Other items
 
(4.7
)
 
2.3

 
(14.5
)
Effective tax rate
 
(37.5
)%
 
37.0
 %
 
87.3
 %

The 2016, 2015 and 2014 effective tax rates were favorably impacted by income earned in jurisdictions where the statutory rate was less than 35%. The impact on continuing operations of the foreign rate differential in 2016 is consistent the prior year.
As of each reporting date, the Company's management considers new evidence, both positive and negative, that could impact management's view with regard to future realization of deferred tax assets. Due to the Spin-Off that occurred in the first quarter of 2016, management reevaluated the deferred tax assets related to the domestic crane operations and determined that it was more likely than not that deferred tax assets related to its domestic crane operations were not realizable and the Company recorded a valuation allowance.
The Company has recorded valuation allowances on the deferred tax assets in Brazil, China Leasing, France, Germany, Slovakia, U.K., and the U.S. as it is more likely than not that they will not be utilized. The 2016 tax provision was impacted by an increase of $187.0 million related to valuation allowances in these jurisdictions.
The Company will continue to periodically evaluate its valuation allowance requirements in light of changing facts and circumstances and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to, or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in the current operations through the Company’s income tax provision and could have a material effect on operating results.
For 2016, the only significant item included in Other items was the net operating loss. For 2015, no items included in Other items are individually, or when appropriately aggregated, significant. For 2014, the only significant item included in Other items was nondeductible expenses.
Temporary differences and carryforwards that give rise to deferred tax assets and liabilities include the following items:
(in millions)
 
2016
 
2015
Non-current deferred tax assets (liabilities):
 
 
 
 
   Inventories
 
$
14.2

 
$
16.2

   Accounts receivable
 
(4.6
)
 
(6.9
)
   Property, plant and equipment
 
19.0

 
(10.6
)
   Intangible assets
 
(35.9
)
 
(37.8
)
   Deferred employee benefits
 
71.8

 
77.2

   Product warranty reserves
 
6.1

 
6.9

   Product liability reserves
 
7.8

 
7.7

   Tax credits
 
4.9

 
0.4

   Loss carryforwards
 
145.4

 
102.1

   Deferred revenue
 
10.8

 
10.2

   Other
 
(1.7
)
 
(8.1
)
   Total non-current deferred tax liabilities
 
237.8

 
157.3

   Less valuation allowance
 
(269.6
)
 
(86.5
)
   Net deferred tax liabilities, non-current
 
$
(31.8
)
 
$
70.8


The net deferred tax assets (liabilities) are reflected in the Consolidated Balance Sheets for the years ended December 31, 2016 and December 31, 2015 as follows:
(in millions)
 
2016
 
2015
Long-term income tax assets, included in other non-current assets
 
$
4.8

 
$
96.4

Long-term deferred income tax liability
 
(36.6
)
 
(25.6
)
Net deferred income tax liability
 
$
(31.8
)
 
$
70.8


The Company has not provided for additional U.S. income taxes on approximately $474.2 million of undistributed earnings of consolidated non-U.S. subsidiaries included in stockholders’ equity. Such earnings could become taxable upon sale or liquidation of these non-U.S. subsidiaries or upon dividend repatriation of cash balances. It is not practicable to estimate the amount of the unrecognized tax liability on such earnings. At December 31, 2016, approximately $13.6 million of the Company’s total cash and cash equivalents were held by its foreign subsidiaries. This cash is associated with earnings that the Company has asserted are permanently reinvested. The Company has no current plans to repatriate cash or cash equivalents held by its foreign subsidiaries because it plans to reinvest such cash and cash equivalents to support its operations and continued growth plans outside the U.S. through the funding of capital expenditures, acquisitions, research, operating expenses or other similar cash needs of these operations. Further, the Company does not currently forecast a need for these funds in the U.S. because its U.S. operations and debt service are supported by the cash generated by its U.S. operations.
The Company has approximately $101.5 million of domestic federal loss carryforwards, which are available to reduce future domestic federal tax liabilities. The federal net operating loss carryforward expires 2036. All of the domestic loss carryforwards are offset by a valuation allowance.
The Company has approximately $667.8 million of state net operating loss carryforwards, which are available to reduce future state tax liabilities.  These state net operating loss carryforwards expire at various times through 2036. The Company has recorded a full valuation allowance related to the state net operating losses. 
The Company has approximately $341.9 million of foreign loss carryforwards, which are available to reduce future foreign tax liabilities.  Substantially all of the foreign loss carryforwards are not subject to any time restrictions on their future use, and $332.4 million are offset by a valuation allowance. 
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The following table provides the open tax years for which the Company could be subject to income tax examination by the tax authorities in its major jurisdictions:
Jurisdiction
 
Open Years
U.S. Federal
 
2012 — 2016
China
 
2007 — 2016
France
 
2013 — 2016
Germany
 
2011 — 2016

Among other regular and ongoing examinations by federal and state jurisdictions globally, the Company is under examination by the Internal Revenue Service for calendar year 2012 to 2014. There have been no significant developments with respect to the Company’s ongoing tax audits in other jurisdictions.

The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves.  As of December 31, 2016, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows.  However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made.  In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments.
During the years ended December 31, 2016, 2015 and 2014, the Company recorded a change to gross unrecognized tax benefits including interest and penalties of $(0.8) million, $(1.9) million, and $(12.1) million, respectively.
During the years ended December 31, 2016, 2015 and 2014, the Company recognized in the Consolidated Statements of Operations $2.8 million, $(0.5) million, and $(2.4) million, respectively, for interest and penalties related to uncertain tax liabilities, which the Company recognizes as a part of income tax expense.  As of December 31, 2016 and 2015, the Company has accrued interest and penalties of $7.4 million and $4.6 million, respectively.
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 is as follows:
(in millions)
 
2016
 
2015
 
2014
Balance at beginning of year
 
$
19.4

 
$
20.8

 
$
29.5

Additions based on tax positions related to the current year
 
1.1

 
1.3

 
1.5

Additions for tax positions of prior years
 
5.0

 
0.2

 
3.2

Reductions for tax positions of prior years
 
(9.3
)
 

 
(2.7
)
Reductions based on settlements with taxing authorities
 

 

 
(5.0
)
Reductions for lapse of statute
 
(0.4
)
 
(2.9
)
 
(5.7
)
Balance at end of year
 
$
15.8

 
$
19.4

 
$
20.8


Substantially all of the Company’s unrecognized tax benefits as of December 31, 2016, 2015 and 2014, if recognized, would affect the effective tax rate.
During the next twelve months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce unrecognized tax benefits and income tax expense by up to $11.2 million, either because the Company’s tax positions are sustained on audit or settled, or the applicable statute of limitations closes.

The Company has a Tax Matters Agreement with Manitowoc Foodservice, Inc. that provides that MFS shall be liable for and shall indemnify the Company against certain U.S. (including states) and foreign income taxes resulting from tax obligations arising due to operations reported on a separate company basis prior to March 4, 2016, where MFS has retained the legal entity post Spin-Off. In addition, the Company is liable for and shall indemnify MFS against certain U.S. (including states) and foreign income taxes arising due to operations prior to March 4, 2016, where such taxes result from combined filings (i.e., when the legal entities of the Company filed as a combined group with legal entities of MFS prior to the Spin-Off) or relate to operations where the Company has retained the legal entity past separation.
Earnings Per Share
Earnings Per Share
Earnings Per Share
The following is a reconciliation of the average shares outstanding used to compute basic and diluted earnings per share: 
 
 
2016
 
2015
 
2014
Basic weighted average common shares outstanding
 
137,767,109

 
136,036,192

 
134,934,892

Effect of dilutive securities - stock awards
 

 

 

Diluted weighted average common shares outstanding
 
137,767,109

 
136,036,192

 
134,934,892

 
For the years ended December 31, 2016, 2015, and 2014, 0.9 million, 2.8 million, and 1.2 million, respectively, of common shares issuable upon the exercise of stock options were anti-dilutive and were excluded from the calculation of diluted earnings per share.
For the years ended December 31, 2016, 2015, and 2014, respectively, the total number of potentially dilutive options was 1.4 million, 1.4 million, and 2.4 million, respectively. Because the Company had a loss from continuing operations for the year, these dilutive options were not included in the computation of diluted net loss per common share since doing so would decrease the loss per share.
Equity
Equity
Equity
Authorized capitalization consists of 300 million shares of $0.01 par value common stock and 3.5 million shares of $0.01 par value preferred stock.  None of the preferred shares have been issued.
On March 21, 2007, the Board of Directors of the Company approved the Rights Agreement between the Company and Computershare Trust Company, N.A., as Rights Agent and declared a dividend distribution of one right (a Right) for each outstanding share of Common Stock, par value $0.01 per share, of the Company, to shareholders of record at the close of business on March 30, 2007.  In addition to the Rights issued as a dividend on the record date, the Board of Directors also determined that one Right would be issued together with each share of common stock issued by the Company after March 30, 2007.  Generally, each Right, if it became exercisable, entitled the registered holder to purchase from the Company one share of common stock at a purchase price, in cash, of $110.00 per share, subject to adjustment as set forth in the Rights Agreement, under certain circumstances related to certain acquisitions of Company common stock. On December 27, 2016, the Rights Agreement was amended such that the Rights expired as of December 31, 2016, and therefore are no longer outstanding.
The amount and timing of any dividends are determined by the Board of Directors at its regular meetings each year, subject to limitations within the Company’s Senior Notes Indenture and the ABL Revolving Credit Facility. No cash dividends were declared or paid in the year ended December 31, 2016. In each of the years ended December 31, 2015 and December 31, 2014, the Company paid an annual dividend of $0.08 per share in the fourth quarter.
Currently, the Company has authorization to purchase up to 2.4 million shares of common stock at management’s discretion; however, the Company has not purchased any share of its common stock pursuant to this authorization since 2006.
The components of accumulated other comprehensive income (loss) as of December 31, 2016 and 2015 are as follows:
(in millions)
 
2016
 
2015
Foreign currency translation
 
$
(110.8
)
 
$
(121.4
)
Derivative instrument fair market value, net of income taxes of $(0.3) and $(2.2)
 
(0.3
)
 
(3.8
)
Employee pension and postretirement benefit adjustments, net of income taxes of $(19.0) and $(35.2)
 
(51.8
)
 
(82.6
)
 
 
$
(162.9
)
 
$
(207.8
)

A reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component for the year ended December 31, 2015 and December 31, 2016 is as follows:
(in millions)
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Foreign Currency Translation
 
Total
Balance at December 31, 2014
 
$
(6.3
)
 
$
(95.0
)
 
$
(29.2
)
 
$
(130.5
)
Other comprehensive loss before reclassifications
 
14.0

 
17.9

 
(92.2
)
 
(60.3
)
Amounts reclassified from accumulated other comprehensive income
 
(11.5
)
 
(5.5
)
 

 
(17.0
)
Net current period other comprehensive income
 
2.5

 
12.4

 
(92.2
)
 
(77.3
)
Balance at December 31, 2015
 
(3.8
)
 
(82.6
)
 
(121.4
)
 
(207.8
)
Other comprehensive loss before reclassifications
 
(2.9
)
 
(8.6
)
 
(20.4
)
 
(31.9
)
Amounts reclassified from accumulated other comprehensive income
 
4.3

 
4.5

 

 
8.8

Net current period other comprehensive loss
 
1.4

 
(4.1
)
 
(20.4
)
 
(23.1
)
Distribution of MFS
 
2.1

 
34.9

 
31.0

 
68.0

Balance at December 31, 2016
 
$
(0.3
)
 
$
(51.8
)
 
$
(110.8
)
 
$
(162.9
)

A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2016 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
(0.9
)
 
Cost of sales
  Commodity contracts
 
(0.2
)
 
Cost of sales
  Interest rate swap contracts: Float-to-fixed
 
(4.3
)
 
Interest expense
 
 
(5.4
)
 
Total before tax
 
 
1.1

 
Tax benefit
 
 
$
(4.3
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
  Actuarial losses
 
$
(4.6
)
(a)
 
  Amortization of prior service cost
 
(0.1
)
(a)
 
 
 
(4.7
)
 
Total before tax
 
 
0.2

 
Tax benefit
 
 
$
(4.5
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(8.8
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details).

A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2015 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
(11.7
)
 
Cost of sales
  Commodity contracts
 
(4.0
)
 
Cost of sales
  Interest rate swap contracts: Float-to-fixed
 
(2.6
)
 
Interest expense
 
 
(18.3
)
 
Total before tax
 
 
6.8

 
Tax expense
 
 
$
(11.5
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
  Actuarial losses
 
$
(7.5
)
(a)
 
  Amortization of prior service cost
 
(0.1
)
(a)
 
 
 
(7.6
)
 
Total before tax
 
 
2.1

 
Tax benefit
 
 
$
(5.5
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(17.0
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details).
A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2014 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
(2.2
)
 
Cost of sales
  Commodity contracts
 
(0.1
)
 
Cost of sales
  Interest rate swap contracts: Float-to-fixed
 
(1.8
)
 
Interest expense
 
 
(4.1
)
 
Total before tax
 
 
1.5

 
Tax expense
 
 
$
(2.6
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
  Actuarial losses
 
$
(4.3
)
(a)
 
  Amortization of prior service cost
 
0.2

(a)
 
 
 
(4.1
)
 
Total before tax
 
 
1.0

 
Tax benefit
 
 
$
(3.1
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(5.7
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details).
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
The Company’s 2013 Omnibus Incentive Plan (the “2013 Omnibus Plan”) was approved by shareholders on May 7, 2013 and replaced the 2003 Incentive Stock and Awards Plan (the “2003 Stock Plan”) and 2004 Non-Employee Director Stock and Awards Plan (the “2004 Stock Plan”). The 2013 Omnibus Plan also replaced the Company’s Short-Term Incentive Plan (the “STIP”) as of December 31, 2013. The 2003 Stock Plan, the 2004 Stock Plan and the STIP are referred to as the “Prior Plans.” No new awards may be granted under the Prior Plans after the respective termination dates, but the Prior Plans continue to govern awards outstanding; outstanding awards will continue in force and effect until vested, exercised or forfeited pursuant to their terms. The 2013 Omnibus Plan provides for both short-term and long-term incentive awards for employees and non-employee directors. Stock-based awards may take the form of stock options, stock appreciation rights, restricted stock, restricted stock units, and performance share or performance unit awards. The total number of shares of the Company’s common stock originally available for awards under the 2013 Omnibus Plan was 8.0 million shares. On March 18, 2016, the Board of Directors approved an amendment to the 2013 Omnibus Plan to reflect the effect of the Spin-Off of MFS. The amendment adjusted the number of shares of common stock reserved for future awards under the Plan, and in February 2017 the Company registered an additional 22,145,082 shares for issuance under the Plan. The adjustment is in accordance with plan provisions, as the number of shares available under the 2013 Omnibus Plan is subject to adjustments for stock splits, stock dividends and certain other transactions or events in the future.
The 2003 Stock Plan and the 2013 Omnibus Plan provided for both short-term and long-term incentive awards for employees, and the 2013 Omnibus Plan also provided for granting of long-term incentive awards for non-employee members of the Board of Directors. Options granted prior to 2011 became exercisable in 25% increments beginning on the second anniversary of the grant date over a four-year period and expire ten years subsequent to the grant date. Option grants to employees beginning in 2011 became exercisable in 25% increments beginning on the first anniversary of the grant date over a four-year period and expire ten years subsequent to the grant date. Restrictions on restricted stock awards and restricted stock units granted to employees lapse 100% on the third anniversary of the grant date. Restrictions on restricted stock units granted to non-employee members of the Board of Directors lapse 100% on the second anniversary of the grant date. Performance shares are earned based on the extent to which performance goals are met over the applicable performance period. The performance goals and the applicable performance period vary for each grant year. An explanation of the performance goals and the applicable performance period for the 2016 and 2014 awards is set forth below. 
The 2004 Stock Plan provided for the granting of stock options to non-employee members of the Board of Directors. No new awards may be made under the 2004 Stock Plan. Stock options awarded under the plan were granted at an exercise price equal to the market price of the common stock at the date of grant and vest immediately and expire ten years subsequent to the grant date. Restrictions on restricted stock awarded to date under the plan lapse on the third anniversary of the award date. 
The Company recognizes expense for all stock-based compensation on a straight-line basis over the vesting period of the entire award.
Total stock-based compensation expense recognized within engineering, selling and administrative expenses in the Consolidated Statements of Operations was $4.9 million, $9.7 million and $10.3 million during 2016, 2015 and 2014, respectively. In 2016, the Company also recognized $2.8 million of expense before tax related to restricted stock retention awards and modification of performance awards due to the Spin-Off, and $1.3 million of expense before tax related to the modification of stock awards associated with employee severance; these expenses are included in “other expense” and “restructuring expense,” respectively, within operating earnings in the Consolidated Statements of Operations. The Company recognized stock-based compensation expense before tax of $0.3 million, $4.7 million and $2.4 million related to MFS which is included in “(loss) income from discontinued operations” in the Consolidated Statements of Operations.
Shares are issued out of treasury stock upon exercise for stock options and vesting of restricted stock awards and restricted stock units.
Stock Options
Any option grants to directors are exercisable immediately upon granting and expire ten years subsequent to the grant date. For all outstanding grants made to officers and employees prior to 2011, options become exercisable in 25% increments annually over a four-year period beginning on the second anniversary of the grant date and expire ten years subsequent to the grant date.  Starting with 2011 grants to officers and directors, options become exercisable in 25% increments annually over a four-year period beginning on the first anniversary of the grant date and expire ten years subsequent to the grant date. 
The Company granted options to acquire 1.8 million, 0.7 million and 0.3 million shares of common stock during 2016, 2015 and 2014, respectively. Stock-based compensation expense is calculated by estimating the fair value of incentive and non-qualified stock options at the time of grant and is amortized over the stock options’ vesting period. The Company recognized $1.8 million, $3.7 million and $4.9 million of compensation expense before taxes associated with stock options during 2016, 2015 and 2014, respectively.
A summary of the Company’s stock option activity is as follows (in millions, except weighted average exercise price per share, which has been adjusted for the Spin-Off):
 
 
Shares
 
Weighted
Average
Exercise Price
 
Aggregate
Intrinsic
Value
Options outstanding as of January 1, 2015
 
5.6

 
$
18.23

 
 

Granted
 
0.7

 
21.02

 
 

Exercised
 
(0.5
)
 
9.63

 
 

Cancelled
 
(0.3
)
 
23.70

 
 

Options outstanding as of December 31, 2015
 
5.5

 
19.04

 
 

Granted
 
1.8

 
4.30

 
 

Exercised
 
(2.9
)
 
3.27

 
 

Forfeited
 
(0.3
)
 
4.21

 
 
Cancelled
 
(0.2
)
 
4.32

 
 

Options outstanding as of December 31, 2016
 
3.9

 
$
4.44

 
$
7.5

Options exercisable as of:
 
 

 
 

 
 

December 31, 2016
 
2.0

 
$
4.55

 
$
3.9


The outstanding stock options at December 31, 2016 have a range of exercise prices from $0.90 to $9.76 per share. The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2016 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price):
 
 
Outstanding
 
Weighted
Average
Remaining
Contractual
 
Weighted
Average
 
Exercisable
 
Weighted
Average
Range of Exercise Price per Share
 
Options
 
Life (Years)
 
Exercise Price
 
Options
 
Exercise Price
$0.90 - $6.00
 
3.2

 
7.0
 
$
3.89

 
1.3

 
$
3.25

$6.01 - $7.00
 
0.4

 
0.3
 
6.02

 
0.4

 
6.02

$7.01 - $9.00
 
0.3

 
1.0
 
7.90

 
0.3

 
7.90

$9.01 - $9.76
 

 
0.9
 
9.44

 

 
9.44

 
 
3.9

 
3.1
 
$
4.44

 
2.0

 
$
4.55


The Company uses the Black-Scholes valuation model to value stock options. The Company used its historical stock prices as the basis for its volatility assumption for grants prior to the Spin-Off. For grants after the Spin-Off, the Company used an average of historical stock prices of selected peers. The assumed risk-free rates were based on ten-year U.S. Treasury rates in effect at the time of grant. The expected option life represents the period of time that the options granted are expected to be outstanding and is based on historical experience.
As of December 31, 2016, the Company has $2.7 million of unrecognized compensation expense before tax related to stock options, which will be recognized over a weighted average period of 2.9 years.
The weighted average fair value of options granted per share during the years ended December 31, 2016, 2015 and 2014 was $2.05, $10.93 and $14.84, respectively. The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing method with the following assumptions:
 
 
2016
 
2015
 
2014
Expected Life (years)
 
6.5

 
6.0

 
6.0

Risk-free Interest rate
 
1.6
%
 
1.8
%
 
1.9
%
Expected volatility
 
45.0
%
 
56.0
%
 
55.0
%
Expected dividend yield
 
%
 
0.3
%
 
0.4
%

For the years ended December 31, 2016, 2015 and 2014 the total intrinsic value of stock options exercised was $6.3 million, $5.6 million and $28.5 million, respectively.
Restricted Stock Awards
The Company granted 0.4 million of restricted stock awards granted to employees in 2015 as retention awards to provide incentive for the employees to continue in employment and contribute toward the successful completion of the separation. Under the retention agreements, the restricted shares will vest on the second anniversary of Spin-Off if the employee has been continuously employed with the Company or an affiliate through that second anniversary. In years prior to 2014, the Company granted restricted stock to employees and directors, which vest on the third and second anniversary of the grant, respectively.
The Company recognized $1.8 million, $0.3 million and $1.0 million of compensation expense associated with restricted stock for the years ended December 31, 2016, 2015 and 2014, respectively. Restricted stock award expense is based on the fair value of the Company’s shares as of the grant date.
A summary of activity for restricted stock awards for the year ended December 31, 2016 is as follows (in millions except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2016
 
0.4

 
$
21.73

Granted
 

 

Vested
 
(0.2
)
 
21.73

Forfeited
 

 
21.73

Unvested as of December 31, 2016
 
0.2

 
$
21.73


As of December 31, 2016, the Company has $0.5 million of unrecognized compensation expense before tax related to restricted stock awards which will be recognized over a weighted average period of 1.2 years.
Restricted Stock Units
The Company granted 1.4 million, 0.6 million and 0.4 million of restricted stock units in 2016, 2015 and 2014, respectively. The restricted stock units are earned either based on service over the vesting period, or based on service over the vesting period and on the extent to which performance goals are met over the applicable performance period (“performance shares”). The performance goals and the applicable performance period vary for performance shares each grant year. The Company recognized $4.0 million, $7.5 million and $5.9 million of compensation expense associated with restricted stock units during 2016, 2015 and 2014, respectively. 
The restricted stock units granted to employees in 2016 generally vest on the third anniversary of the grant date, assuming continued employment. The restricted stock units granted to directors in 2016 vest on the second anniversary of the grant date, assuming continued service. The performance shares granted in 2016 are earned based on the extent to which performance goals are met by the Company over a three-year period from January 1, 2016 to December 31, 2018. The performance goals for the performance shares granted in 2016 were based fifty percent (50%) on total shareholder return relative to a peer group of companies over the three-year period and fifty percent (50%) on return on invested capital over the three-year period. Depending on the foregoing factors, the number of shares awarded could range from zero to 1.6 million for the 2016 performance share grants. For these awards, the expense is based on the fair value of the Company's shares as of the grant date for the return on invested capital criteria and a Monte Carlo model for the total shareholder return criteria.
The restricted stock units granted to employees in 2015 generally vest on the third anniversary of the grant date, assuming continued employment. The restricted stock units granted to directors in 2015 generally vest on the second anniversary of the grant date, assuming continued service. Performance shares were not granted in 2015 due to the anticipated Spin-Off.
The restricted stock units granted to employees in 2014 generally vest on the third anniversary of the grant date, assuming continued employment. The restricted stock units granted to directors in 2014 vest on the second anniversary of the grant date, assuming continued service. Prior to the Spin-Off, the performance shares granted in 2014 were earned based on the extent to which performance goals were expected to be met by the Company over a three-year period from January 1, 2014 to December 31, 2016. The performance goals for the performance shares granted in 2014 were based fifty percent (50%) on total shareholder return relative to a peer group of companies over the three-year period and fifty percent (50%) on EVA® improvement over the three-year period. Concurrent with the Spin-Off, the Company's Compensation Committee re-evaluated these performance measures and, due to challenges related to the calculation of the results on such measures on account of the Spin-Off, the Compensation Committee exercised discretion and determined that vesting of the 2014 performance shares would be solely based on service through December 31, 2016. As a result, for employees who met the service condition, the 2014 performance shares paid out at 100% of target. For these awards, the grant date expense was based on the fair value of the Company's shares as of the grant date for the EVA® improvement criteria and a Monte Carlo model for the total shareholder return criteria. Because of the modification of the 2014 performance awards, the Company also recognized an additional $1.0 million of expense before tax; this expense is included in “other expense” within operating earnings in the Consolidated Statements of Operations.
A summary of activity for restricted stock units for the year ended December 31, 2016 is as follows (in millions except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2016
 
0.7

 
$
25.53

Granted
 
1.4

 
5.36

Vested
 
(0.2
)
 
22.43

Forfeited
 
(0.2
)
 
11.07

Unvested as of December 31, 2016
 
1.7

 
$
11.02


As of December 31, 2016, the Company has $5.4 million of unrecognized compensation expense before tax related to restricted stock units which will be recognized over a weighted average period of 2.0 years.
Segments Segments
Segments
Segments
The Company has one reportable segment, the Crane business. The segment was identified using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance.
Net sales from continuing operations and long-lived asset information by geographic area as of and for the years ended December 31 are included below. Long-lived assets are defined as property, plant and equipment-net and other non-current assets, excluding goodwill, other intangible assets-net and deferred tax assets.
 
Net Sales
 
Long-Lived Assets
(in millions)
2016
 
2015
 
2014
 
2016
 
2015
United States
$
641.3

 
$
784.5

 
$
951.3

 
$
152.9

 
$
258.6

Other North America
61.9

 
87.2

 
156.9

 

 

Europe
520.7

 
418.9

 
554.3

 
129.9

 
135.3

Asia
159.1

 
184.8

 
221.2

 
50.5

 
86.3

Middle East
119.6

 
193.8

 
212.7

 
1.4

 
1.5

Central and South America
24.9

 
63.7

 
93.1

 
10.8

 
11.8

Africa
39.7

 
80.0

 
54.5

 

 

South Pacific and Caribbean
8.2

 
5.9

 
7.3

 

 
3.8

Australia
37.7

 
46.9

 
53.9

 
0.4

 
0.1

Total
$
1,613.1

 
$
1,865.7

 
$
2,305.2

 
$
345.9

 
$
497.4

Contingencies and Significant Estimates
Contingencies and Significant Estimates
Contingencies and Significant Estimates
As of December 31, 2016, the Company held reserves for environmental matters related to potential contaminants in soil and groundwater.  The ultimate cost of any remediation required will depend upon the results of future investigation.  Based upon available information, the Company does not expect the ultimate costs at any of these locations will have a material adverse effect on its financial condition, results of operations, or cash flows individually and in aggregate.
The Company believes that it has obtained and is in substantial compliance with those material environmental permits and approvals necessary to conduct its various businesses.  Based on the facts presently known, the Company does not expect environmental compliance costs to have a material adverse effect on its financial condition, results of operations or cash flows.
As of December 31, 2016, various product-related lawsuits were pending.  To the extent permitted under applicable law, all of these are insured with self-insurance retention levels.  The Company’s self-insurance retention levels vary by business, and have fluctuated over the last 10 years. The high-end of the Company’s self-insurance retention level is a legacy product liability insurance program inherited in the Grove acquisition for cranes manufactured in the United States for occurrences from January 2000 through October 2002.  As of December 31, 2016, the largest self-insured retention level for new occurrences currently maintained by the Company is $2.0 million per occurrence and applies to product liability claims for cranes manufactured in the United States.
Product liability reserves in the Consolidated Balance Sheets at December 31, 2016 and December 31, 2015 were $21.7 million and $21.9 million, respectively, which were estimated using a combination of actual case reserves and actuarial methods.  Based on the Company’s experience in defending product liability claims, management believes the current reserves are adequate for estimated case resolutions on aggregate self-insured claims and insured claims.  Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers.
At December 31, 2016, and December 31, 2015, the Company had reserved $28.6 million and $32.4 million, respectively, for warranty claims included in product warranties and other non-current liabilities in the Consolidated Balance Sheets.  Certain of these warranty and other related claims involve matters in dispute that ultimately are resolved by negotiations, arbitration, or litigation. See Note 19, “Guarantees,” for further information.
It is reasonably possible that the estimates for environmental remediation, product liability and warranty costs may change in the near future based upon new information that may arise or matters that are beyond the scope of the Company’s historical experience.  Presently, there are no reliable methods to estimate the amount of any such potential changes.
The Company is involved in numerous lawsuits involving asbestos-related claims in which the Company is one of numerous defendants.  After taking into consideration legal counsel’s evaluation of such actions, the current political environment with respect to asbestos related claims, and the liabilities accrued with respect to such matters, in the opinion of management, ultimate resolution is not expected to have a material adverse effect on the financial condition, results of operations, or cash flows of the Company.
The Company is also involved in various legal actions arising out of the normal course of business, which, taking into account the liabilities accrued and legal counsel’s evaluation of such actions, in the opinion of management, the ultimate resolution of all matters is not expected to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows.
Guarantees
Guarantees
Guarantees
The Company periodically enters into transactions with customers that provide for residual value guarantees and buyback commitments.  These initial transactions are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the customer’s third party financing agreement.  The deferred revenue included in accounts payable and accrued expenses and non-current liabilities at December 31, 2016 and December 31, 2015 was $30.4 million and $43.0 million, respectively.  The total amount of residual value guarantees and buyback commitments given by the Company and outstanding at December 31, 2016 and December 31, 2015 was $32.8 million and $42.9 million, respectively.  These amounts are not reduced for amounts the Company would recover from repossessing and subsequent resale of the units.  The residual value guarantees and buyback commitments expire at various times through 2019.
In the normal course of business, the Company provides its customers a warranty covering workmanship, and in some cases materials, on products manufactured by the Company.  Such warranty generally provides that products will be free from defects for periods ranging from 12 months to 60 months. If a product fails to comply with the Company’s warranty, the Company may be obligated, at its expense, to correct any defect by repairing or replacing such defective products.  The Company provides for an estimate of costs that may be incurred under its warranty at the time product revenue is recognized.  These costs primarily include labor and materials, as necessary, associated with repair or replacement.  The primary factors that affect the Company’s warranty liability include the number of units shipped and historical and anticipated warranty claims.  As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.  Below is a table summarizing the warranty activity for the years ended December 31, 2016 and 2015:
(in millions)
 
2016
 
2015
Balance at beginning of period
 
$
32.4

 
$
36.1

Accruals for warranties issued during the period
 
20.4

 
22.4

Settlements made (in cash or in kind) during the period
 
(23.7
)
 
(24.4
)
Currency translation
 
(0.5
)
 
(1.7
)
Balance at end of period
 
$
28.6

 
$
32.4

Restructuring and Asset Impairments
Restructuring and Asset Impairments
Restructuring and Asset Impairments
The Company initiated restructuring plans in 2015 to focus on its cranes business and Spin-Off of MFS. The Spin-Off was completed in the first quarter of 2016. Refer to Notes 1 and 3 for further information regarding the Spin-Off. The Company is continuing its restructuring activities to right-size the business by balancing capacity with demand. During the twelve months ended December 31, 2016, 2015 and 2014, the Company incurred $23.4 million, $9.4 million and $6.6 million of restructuring expense, respectively. These costs related primarily to employee termination benefits associated with workforce reductions. The workforce reductions are part of ongoing manufacturing and operations rationalization programs, including the planned closure of the Company's manufacturing facility in Manitowoc, WI, which was announced during the third quarter of 2016. The restructuring expense in the twelve months ended December 31, 2016, and December 31, 2015 included $2.3 million and $3.5 million, respectively, of expense related to executive severance.
During the third quarter of 2016, the Company announced its intent to relocate its crawler crane manufacturing operations located in Manitowoc, Wisconsin to Shady Grove, Pennsylvania, with completion anticipated by the middle of 2017. This initiative is intended to increase operational efficiency, and thereby increase future operating results and liquidity, allowing the Company to reallocate resources to invest in future growth.
Including amounts already incurred, the Company expects to incur cash charges related to severance costs and other employment-related benefits in the range of $10 to $15 million, capital expenditures in the range of $10 to $15 million and other costs in the range of $15 to $20 million related to the plant consolidation into Shady Grove, Pennsylvania. The Company anticipates that the majority of the cash charges will be settled by the end of 2017.  Non-cash charges, primarily related to fixed assets and inventory related charges are expected to be in the range of $20 to $25 million and are anticipated to be recognized by the end of 2017.
The following is a roll-forward of the Company's restructuring activities for the twelve months ended December 31, 2016 (in millions):
 
Restructuring Reserve
Balance as of
December 31, 2015
 
Restructuring
Expenses
 
Use of Reserve
 
Reserve Reclassifications
 
Restructuring Reserve
Balance as of
December 31, 2016
Total
$
6.5

 
$
23.4

 
$
20.8

 
$
0.9

 
$
8.2


In the twelve months ended December 31, 2016, the Company recorded $96.9 million in asset impairment expense. This included a $13.8 million write-down to fair value related to the fixed assets of the Manitowoc, WI manufacturing facility. Further, during 2016, the Company, in conjunction with the decision to close the manufacturing location in Manitowoc, WI, made the decision to permanently stop any further work on implementing its SAP enterprise resource planning (“ERP”) platform, and recorded a write-off of $58.6 million related to SAP construction-in-progress and $18.6 million related to SAP and other IT assets. The remainder of the impairment expense for the year was related to other restructuring actions.
Asset impairment expense for the year ended December 31, 2015 was $15.3 million. The impairment recorded in 2015 resulted from the write-down of manufacturing facilities in Brazil and Slovakia.
Asset valuations are estimates and require assumptions and judgment by management. While the Company believes the estimates and assumptions are reasonable, a change in assumptions, including market conditions, could change the estimated fair value and, therefore, further impairment charges could be required.
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
The Company maintains three defined contribution retirement plans for its employees: (1) The Manitowoc Company, Inc. 401(k) Retirement Plan (the “Manitowoc 401(k) Retirement Plan”); (2) The Manitowoc Company, Inc. Retirement Savings Plan (the “Manitowoc Retirement Savings Plan”); and (3) The Manitowoc Company, Inc. Deferred Compensation Plan (the “Manitowoc Deferred Compensation Plan”). Each plan results in individual participant balances that reflect a combination of amounts contributed by the Company or deferred by the participant, amounts invested at the direction of either the Company or the participant, and the continuing reinvestment of returns until the accounts are distributed.
Manitowoc 401(k) Retirement Plan The Manitowoc 401(k) Retirement Plan is a tax-qualified retirement plan that is available to substantially all non-union U.S. employees of Manitowoc, its subsidiaries and related entities. The Company merged the accounts of non-union participants in the Enodis Corporation 401(k) Plan with and into the Manitowoc 401(k) Retirement Plan on December 31, 2009.
The Manitowoc 401(k) Retirement Plan allows employees to make both pre- and post-tax elective deferrals, subject to certain limitations under the Internal Revenue Code of 1986, as amended (the “Tax Code”).  The Company also has the right to make the following additional contributions: (1) a matching contribution based upon individual employee deferrals; (2) an economic value added (“EVA”) based Company contribution; and (3) an additional non-EVA-based Company contribution. Each participant in the Manitowoc 401(k) Retirement Plan is allowed to direct the investment of that participant’s account among a diverse mix of investment funds, including a Company stock alternative. To the extent that any funds are invested in Company stock, that portion of the Manitowoc 401(k) Retirement Plan is an employee stock ownership plan, as defined under the Tax Code (an “ESOP”).
The terms governing the retirement benefits under the Manitowoc 401(k) Retirement Plan are the same for the Company’s executive officers as they are for other eligible employees in the U.S.
Manitowoc Retirement Savings Plan The Manitowoc Retirement Savings Plan is a tax-qualified retirement plan that is available to certain collectively bargained U.S. employees of Manitowoc, its subsidiaries and related entities. The Company merged the following plans with and into the Manitowoc Retirement Savings Plan on December 31, 2009: (1) The Manitowoc Cranes, Inc. Hourly-Paid Employees’ Deferred Profit-Sharing Plan; (2) the Manitowoc Ice, Inc. Hourly-Paid Employees’ Deferred Profit-Sharing Plan; and (3) the accounts of collectively bargained participants in the Enodis Corporation 401(k) Plan. 
The Manitowoc Retirement Savings Plan allows employees to make both pre- and post-tax elective deferrals, subject to certain limitations under the Tax Code. The Company also has the right to make the following additional contributions: (1) a matching contribution based upon individual employee deferrals; and (2) an additional discretionary or fixed Company contribution. Each participant in the Manitowoc Retirement Savings Plan is allowed to direct the investment of that participant’s account among a diverse mix of investment funds, including a Company stock alternative. To the extent that any funds are invested in Company stock, that portion of the Manitowoc Retirement Savings Plan is an ESOP.
The Company’s executives are not eligible to participate in the Manitowoc Retirement Savings Plan. Company contributions to the plans are based upon formulas contained in the plans. Total costs incurred under these plans were $1.9 million, $3.2 million and $6.1 million for the years ended December 31, 2016, 2015 and 2014, respectively.
Manitowoc Deferred Compensation Plan The Manitowoc Deferred Compensation Plan is a non-tax-qualified supplemental deferred compensation plan for highly compensated and key management employees and for directors. On December 31, 2009, the Company merged the Enodis Corporation Supplemental Executive Retirement Plan, another defined contribution deferred compensation plan, with and into the Manitowoc Deferred Compensation Plan. The Company maintains the Manitowoc Deferred Compensation Plan to allow eligible individuals to save for retirement in a tax-efficient manner despite Tax Code restrictions that would otherwise impair their ability to do so under the Manitowoc 401(k) Retirement Plan. The Manitowoc Deferred Compensation Plan also assists the Company in retaining those key employees and directors.
The Manitowoc Deferred Compensation Plan accounts are credited with: (1) elective deferrals made at the request of the individual participant; and/or (2) a discretionary Company contribution for each individual participant. Although unfunded within the meaning of the Tax Code, the Manitowoc Deferred Compensation Plan utilizes a rabbi trust to hold assets intended to satisfy the Company’s corresponding future benefit obligations. Each participant in the Manitowoc Deferred Compensation Plan is credited with interest based upon individual elections from amongst a diverse mix of investment funds that are intended to reflect investment funds similar to those offered under the Manitowoc 401(k) Retirement Plan, including Company stock. Participants do not receive preferential or above-market rates of return under the Manitowoc Deferred Compensation Plan.
Plan participants are able to direct deferrals and Company matching contributions into two separate investment programs, Program A and Program B.
The investment assets in Program A and B are held in two separate Deferred Compensation Plans, which restrict the Company’s use and access to the funds, but which are also subject to the claims of the Company’s general creditors in rabbi trusts. Program A invests solely in the Company’s stock; dividends paid on the Company’s stock are automatically reinvested; and all distributions must be made in Company stock. Program B offers a variety of investment options but does not include Company stock as an investment option. All distributions from Program B must be made in cash. Participants cannot transfer assets between programs.
Program A is accounted for as a plan that does not permit diversification. As a result, the Company stock held by Program A is classified in equity in a manner similar to accounting for treasury stock. The deferred compensation obligation is classified as an equity instrument. Changes in the fair value of the Company’s stock and the compensation obligation are not recognized. The asset and obligation for Program A were both $0.0 million at December 31, 2016 and $1.0 million at December 31, 2015. These amounts are offset in the Consolidated Statements of Equity.
Program B is accounted for as a plan that permits diversification. As a result, the assets held by Program B are classified as an asset in the Consolidated Balance Sheets and changes in the fair value of the assets are recognized in earnings. The deferred compensation obligation is classified as a liability in the Consolidated Balance Sheets and adjusted, with a charge or credit to compensation cost, to reflect changes in the fair value of the obligation. The assets, which are included in other non-current assets, and obligation, which are included in other non-current liabilities, were both $11.3 million at December 31, 2016 and $15.2 million at December 31, 2015. There was no net impact on the Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014.
Pension, Postretirement Medical and Other Benefit Plans The Company provides certain pension, health care and death benefits for eligible retirees and their dependents. The pension benefits are funded, while the health care and death benefits are not funded but are paid as incurred.  Eligibility for coverage is based on meeting certain years of service and retirement qualifications. These benefits may be subject to deductibles, co-payment provisions, and other limitations. The Company has reserved the right to modify these benefits. As of December 31, 2010, all of the remaining United States defined benefit plans were merged into a single plan: the Manitowoc U.S. Pension Plan. All merged plans had benefit accruals frozen prior to merger of plan.
The Manitowoc U.S. Pension Plan was split into the Manitowoc U.S. Pension Plan and the Manitowoc Foodservice Pension Plan as of December 31, 2015, and the plan obligations and assets associated with MFS were transferred to the MFS legal entity as of that date. For accounting purposes, the plan obligation, assets, and costs associated with the Manitowoc Foodservice Pension Plan are included in the results of operations of the Company until the Spin-Off date.
In addition to the Manitowoc U.S. Pension Plan, the Company also maintains defined benefit plans which are sponsored directly by the Company or its subsidiaries and offered only to employees or retires of specific subsidiaries (“Direct Plans”). The plan obligation, assets, and costs associated with Direct Plans related to MFS are presented as discontinued operations in the consolidated financial statements. As of December 31, 2015, the funded status of the MFS Direct Plans of $32.5 million was recognized in liabilities of discontinued operations. The tables below are inclusive of the plan obligation, assets, and cost associated with the MFS Direct Plans through the Spin-Off.
The components of period benefit costs for the years ended December 31, 2016, 2015 and 2014 are as follows:
 
 
US Pension Plans
 
Non-US Pension Plans
 
Postretirement Health
and Other
(in millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost - benefits earned during the year
 
$

 
$

 
$

 
$
1.7

 
$
2.6

 
$
2.4

 
$
0.3

 
$
0.4

 
$
0.4

Interest cost of projected benefit obligation
 
6.8

 
9.4

 
10.3

 
2.5

 
8.9

 
11.3

 
1.7

 
2.0

 
2.1

Expected return on assets
 
(5.7
)
 
(9.0
)
 
(9.5
)
 
(1.8
)
 
(7.4
)
 
(9.4
)
 

 

 

Amortization of prior service cost
 

 

 

 
0.1

 
0.1

 
0.1

 

 

 
(0.3
)
Amortization of actuarial net loss (gain)
 
3.6

 
5.1

 
2.9

 
1.0

 
2.3

 
1.5

 

 
0.1

 
(0.1
)
Curtailment gain recognized
 

 

 

 

 

 

 

 

 

Net periodic benefit cost
 
$
4.7

 
$
5.5

 
$
3.7

 
$
3.5

 
$
6.5

 
$
5.9

 
$
2.0

 
$
2.5

 
$
2.1

Weighted average assumptions:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.5
%
 
4.1
%
 
4.9
%
 
2.9
%
 
3.3
%
 
4.3
%
 
4.2
%
 
3.7
%
 
4.5
%
Expected return on plan assets
 
5.5
%
 
5.8
%
 
6.0
%
 
4.0
%
 
3.6
%
 
4.5
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
N/A

 
2.4
%
 
3.9
%
 
4.3
%
 
N/A

 
1.5
%
 
3.0
%
 
The prior service costs are amortized on a straight-line basis over the average remaining service period of active participants.  Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants.
To develop the expected long-term rate of return on assets assumptions, the Company considered the historical returns and future expectations for returns in each asset class, as well as targeted asset allocation percentages within the pension portfolio.
The following is a reconciliation of the changes in benefit obligation, the changes in plan assets, and the funded status as of December 31, 2016 and 2015:
 
 
US Pension Plans
 
Non-US Pension Plans
 
Postretirement
Medical
and Other
(in millions)
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Change in Benefit Obligation
 
 

 
 

 
 

 
 

 
 

 
 

Benefit obligation, beginning of year
 
$
218.5

 
$
235.9

 
$
252.5

 
$
279.5

 
$
51.8

 
$
57.0

Distribution of MFS
 
(62.4
)
 

 
(170.4
)
 

 
(10.1
)
 

Service cost
 

 

 
1.7

 
2.6

 
0.3

 
0.4

Interest cost
 
6.8

 
9.4

 
2.5

 
8.9

 
1.7

 
2.0

Participant contributions
 

 

 

 
0.1

 
1.9

 
2.4

Medicare subsidies received
 

 

 

 

 
0.2

 
0.2

Plan settlements
 

 

 

 

 

 

Net transfer out
 

 

 

 
(0.3
)
 

 

Actuarial (gain) loss
 
0.9

 
(15.2
)
 
11.0

 
(9.7
)
 
1.8

 
(2.0
)
Currency translation adjustment
 

 

 
(9.9
)
 
(15.4
)
 

 
(0.2
)
Benefits paid
 
(8.2
)
 
(11.6
)
 
(4.6
)
 
(13.2
)
 
(6.0
)
 
(8.0
)
Benefit obligation, end of year
 
$
155.6

 
$
218.5

 
$
82.8

 
$
252.5

 
$
41.6

 
$
51.8

Change in Plan Assets
 
 

 
 

 
 

 
 

 
 

 
 

Fair value of plan assets, beginning of year
 
$
143.9

 
$
160.0

 
$
196.9

 
$
214.0

 
$

 
$

Distribution of MFS
 
(34.1
)
 

 
(147.8
)
 

 

 

Actual return on plan assets
 
6.4

 
(5.8
)
 
2.7

 
1.5

 

 

Employer contributions
 
0.6

 
1.3

 
2.2

 
5.1

 
3.9

 
5.4

Participant contributions
 

 

 

 
0.1

 
1.9

 
2.4

Medicare subsidies received
 

 

 

 

 
0.2

 
0.2

Currency translation adjustment
 

 

 
(7.6
)
 
(10.3
)
 

 

Net transfer out
 

 

 

 
(0.3
)
 

 

Benefits paid
 
(8.2
)
 
(11.6
)
 
(4.6
)
 
(13.2
)
 
(6.0
)
 
(8.0
)
Fair value of plan assets, end of year
 
108.6

 
143.9

 
41.8

 
196.9

 

 

Funded status
 
$
(47.0
)
 
$
(74.6
)
 
$
(41.0
)
 
$
(55.6
)
 
$
(41.6
)
 
$
(51.8
)
Amounts recognized in the Consolidated Balance sheet at December 31
 
 

 
 

 
 

 
 

 
 

 
 

Pension asset
 
$

 
$

 
$

 
$

 
$

 
$

Pension obligation
 
(47.0
)
 
(74.6
)
 
(41.0
)
 
(55.6
)
 

 

Postretirement medical and other benefit obligations
 

 

 

 

 
(41.6
)
 
(51.8
)
Net amount recognized
 
$
(47.0
)
 
$
(74.6
)
 
$
(41.0
)
 
$
(55.6
)
 
$
(41.6
)
 
$
(51.8
)
Weighted-Average Assumptions
 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.2
%
 
4.5
%
 
2.1
%
 
3.5
%
 
3.8
%
 
4.1
%
Expected return on plan assets
 
5.5
%
 
5.8
%
 
4.0
%
 
3.6
%
 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
2.4
%
 
3.9
%
 
N/A

 
1.5
%

The Company prepares its discount rates with advice from an independent third party. The Company uses different discount rates for each plan depending on the plan jurisdiction, the demographics of participants and the expected timing of benefit payments. For the qualified U.S. pension plan and postretirement medical plans, the Company uses a discount rate calculated based on an appropriate mix of high quality corporate bonds. For the non-U.S. pension and postretirement plans, the Company consistently uses the relevant country specific benchmark indices for determining the various discount rates.
Amounts recognized in accumulated other comprehensive income as of December 31, 2016 and 2015, consist of the following: 
 
 
Pensions
 
Postretirement
Medical and Other
(in millions)
 
2016
 
2015
 
2016
 
2015
Net actuarial gain (loss)
 
$
(65.1
)
 
$
(113.5
)
 
$
(5.1
)
 
$
(3.8
)
Prior service credit
 
(0.6
)
 
(0.7
)
 

 

Total amount recognized
 
$
(65.7
)
 
$
(114.2
)
 
$
(5.1
)
 
$
(3.8
)

The amounts in accumulated other comprehensive income that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are $4.8 million for the pension plan and $0.1 million for the postretirement medical and other plans.
For measurement purposes, a 6.2% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2016.  The rate was assumed to decrease gradually to 4.5% until 2038 and remain at that level thereafter.  Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans.  The following table summarizes the sensitivity of our December 31, 2016 retirement obligations and 2016 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions):
Change in assumption:
 
Estimated increase
(decrease) in 2017 pension
cost
 
Estimated increase
(decrease) in Projected
Benefit Obligation for the
year ended December 31,
2016
 
Estimated increase
(decrease) in 2017 Other
Postretirement Benefit
costs
 
Estimated increase
(decrease) in Other
Postretirement Benefit
Obligation for the year
ended December 31, 2016
0.50% increase in discount rate
 
$
(0.8
)
 
$
(13.6
)
 
$

 
$
(1.5
)
0.50% decrease in discount rate
 
0.9

 
14.9

 
0.1

 
1.6

0.50% increase in long-term return on assets
 
(0.7
)
 
N/A

 
N/A

 
N/A

0.50% decrease in long-term return on assets
 
0.7

 
N/A

 
N/A

 
N/A

1% increase in medical trend rates
 
N/A

 
N/A

 
0.7

 
3.7

1% decrease in medical trend rates
 
N/A

 
N/A

 
(0.3
)
 
(3.3
)

It is reasonably possible that the estimate for future retirement and medical costs may change in the near future due to changes in the health care environment or changes in interest rates that may arise.  Presently, there is no reliable means to estimate the amount of any such potential changes.
The weighted-average asset allocations of the U.S. pension plans at December 31, 2016 and 2015, by asset category are as follows:
 
 
2016
 
2015
Equity
 
25.0
%
 
24.5
%
Fixed income
 
74.4
%
 
74.8
%
Other
 
0.6
%
 
0.7
%
 
 
100.0
%
 
100.0
%

The weighted-average asset allocations of the Non-U.S. pension plans at December 31, 2016 and 2015, by asset category are as follows:
 
 
2016
 
2015
Equity
 
33.7
%
 
16.2
%
Fixed income
 
31.1
%
 
29.2
%
Other
 
35.2
%
 
54.6
%
 
 
100.0
%
 
100.0
%

The Board of Directors has established the Retirement Plan Committee (the “Committee”) to manage the operations and administration of all benefit plans and related trusts. The Committee is committed to diversification to reduce the risk of large losses. On a quarterly basis, the Committee reviews progress toward achieving the pension plans’ and individual managers’ performance objectives.
Investment Strategy The overall objective of the Company's pension assets is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension fund. Specific investment objectives for our long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, achieving a competitive, total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified.
The Company reviews its long-term, strategic asset allocations annually. The Company uses various analytics to determine the optimal asset mix and consider plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns. The Company identifies investment benchmarks for the asset classes in the strategic asset allocation that are market-based and investable where possible. 
Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions and the timing of benefit payments and contributions. The asset allocation is monitored and rebalanced monthly.
The actual allocations for the pension assets at December 31, 2016, and target allocations by asset class, are as follows:
 
Target Allocations
 
Weighted Average Asset Allocations
 
U.S. Plans
 
International Plans
 
U.S. Plans
 
International Plans
Equity Securities
25
%
 
0 - 25%
 
25.0
%
 
33.7
%
Debt Securities
75
%
 
0 - 100%
 
74.4
%
 
31.1
%
Other
%
 
0 - 100%
 
0.6
%
 
35.2
%

Risk Management In managing the plan assets, we review and manage risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability management and asset class diversification are central to our risk management approach and are integral to the overall investment strategy. Further, asset classes are constructed to achieve diversification by investment strategy, by investment manager, by industry or sector and by holding.  Investment manager guidelines for publicly traded assets are specified and are monitored regularly.
Fair Value Measurements The following table presents our plan assets using the fair value hierarchy as of December 31, 2016 and 2015.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.
 
 
December 31, 2016
Assets (in millions)
 
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable Inputs
(Level 3)
 
Total
Cash
 
$
0.9

 
$

 
$

 
$
0.9

Insurance group annuity contracts
 

 

 
14.5

 
14.5

Common/collective trust funds — Government debt
 

 

 

 

Common/collective trust funds — Corporate and other non-government debt
 

 
38.4

 

 
38.4

Common/collective trust funds — Government, corporate and other non-government debt
 

 
55.3

 

 
55.3

Common/collective trust funds — Corporate equity
 

 
41.3

 

 
41.3

Common/collective trust funds — Customized strategy
 

 

 

 

Total
 
$
0.9

 
$
135.0

 
$
14.5

 
$
150.4

 
 
December 31, 2015
Assets (in millions)
 
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable Inputs
(Level 3)
 
Total
Cash
 
$
2.0

 
$

 
$

 
$
2.0

Insurance group annuity contracts
 

 

 
106.5

 
106.5

Common/collective trust funds — Government debt
 

 

 

 

Common/collective trust funds — Corporate and other non-government debt
 

 
60.6

 

 
60.6

Common/collective trust funds — Government, corporate and other non-government debt
 

 
98.7

 

 
98.7

Common/collective trust funds — Corporate equity
 

 
67.1

 

 
67.1

Common/collective trust funds — Customized strategy
 

 
5.9

 

 
5.9

Total
 
$
2.0

 
$
232.3

 
$
106.5

 
$
340.8


Cash equivalents and other short-term investments, which are used to pay benefits, are primarily held in registered money market funds which are valued using a market approach based on the quoted market prices of identical instruments. Other cash equivalent and short-term investments are valued daily by the fund using a market approach with inputs that include quoted market prices for similar instruments. 
Insurance group annuity contracts are valued at the present value of the future benefit payments owed by the insurance Company to the Plans’ participants.
Common/collective funds are typically common or collective trusts valued at their net asset values (NAVs) that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity.
A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows:
 
 
Insurance Contracts
Year Ended December 31,
(in millions)
 
2016
 
2015
Beginning Balance
 
$
106.5

 
$
117.7

Distribution of MFS
 
(89.9
)
 

Actual return on assets
 
2.0

 
1.0

Benefit payments
 
(1.4
)
 
(6.7
)
Foreign currency impact
 
(2.7
)
 
(5.5
)
Ending Balance
 
$
14.5

 
$
106.5


The expected 2017 contributions for the U.S. pension plans are as follows: the minimum contribution for 2017 is $4.7 million; and no planned discretionary or non-cash contributions.  The expected 2017 contributions for the non-U.S. pension plans are as follows: the minimum contribution for 2017 is $1.4 million; and no planned discretionary or non-cash contributions.  Expected Company paid claims for the postretirement medical and life insurance plans are $3.6 million for 2017.  Projected benefit payments from the plans as of December 31, 2016 are estimated as follows:
(in millions)
 
U.S Pension Plans
 
Non-U.S. Pension
Plans
 
Postretirement
Health and Other
2017
 
$
9.4

 
$
2.8

 
$
3.6

2018
 
9.7

 
2.7

 
3.8

2019
 
9.9

 
3.1

 
3.8

2020
 
10.1

 
3.6

 
3.8

2021
 
10.1

 
3.6

 
3.8

2022 — 2026
 
50.1

 
20.0

 
15.6


The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2016 and 2015 is as follows:
 
 
U.S Pension Plans
 
Non U.S. Pension Plans
(in millions)
 
2016
 
2015
 
2016
 
2015
Projected benefit obligation
 
$
155.6

 
$
218.5

 
$
79.1

 
$
252.5

Accumulated benefit obligation
 
155.6

 
218.5

 
76.2

 
244.9

Fair value of plan assets
 
108.6

 
143.9

 
38.4

 
196.9


The accumulated benefit obligation for all U.S. pension plans as of December 31, 2016 and 2015 was $155.6 million and $218.5 million, respectively.  The accumulated benefit obligation for all non-U.S. pension plans as of December 31, 2016 and 2015 was $76.2 million and $244.9 million, respectively.
The measurement date for all plans is December 31, 2016.
The Company also maintains a target benefit plan for certain executive officers of the Company.  Expenses related to the plan in the amount of $3.2 million, $2.9 million and $2.4 million were recorded in 2016, 2015 and 2014, respectively.  Amounts accrued as of December 31, 2016 and 2015 related to this plan were $21.4 million and $26.9 million, respectively.
Leases
Leases
Leases
The Company leases various property, plant and equipment.  Terms of the leases vary, but generally require the Company to pay property taxes, insurance premiums, and maintenance costs associated with the leased property.  Rental expense attributed to operating leases was $23.1 million, $16.8 million and $20.9 million in 2016, 2015 and 2014, respectively. 
Future minimum rental obligations under non-cancelable operating leases as of December 31, 2016 are payable as follows:
(in millions)
 
2017
$
19.9

2018
14.4

2019
12.7

2020
11.7

2021
11.2

Thereafter
27.5

Total
$
97.4

Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
The following tables present select quarterly financial data for 2016 and 2015:
As adjusted for impact of change to FIFO
 
2016
 
2015
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
 
First
 
Second
 
Third
 
Fourth
Statements of operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
427.4

 
$
457.7

 
$
349.8

 
$
378.2

 
$
406.7

 
$
477.7

 
$
438.2

 
$
543.1

Cost of sales
 
347.7

 
370.4

 
309.0

 
332.7

 
329.3

 
379.9

 
369.4

 
454.9

Gross profit
 
79.7

 
87.3

 
40.8

 
45.5

 
77.4

 
97.8

 
68.8

 
88.2

Operating income (loss)
 
0.8

 
3.9

 
(134.2
)
 
(23.8
)
 
(6.3
)
 
17.1

 
(9.3
)
 
(13.9
)
(Loss) income from continuing operations before taxes
 
(85.0
)
 
(4.3
)
 
(144.2
)
 
(34.6
)
 
(30.9
)
 
(5.1
)
 
(36.8
)
 
(38.2
)
Provision (benefit) for taxes on income
 
107.7

 
0.7

 
(5.3
)
 
(2.6
)
 
(8.7
)
 
(0.7
)
 
(6.4
)
 
(25.3
)
Loss from continuing operations
 
(192.7
)
 
(5.0
)
 
(138.9
)
 
(32.0
)
 
(22.2
)
 
(4.4
)
 
(30.4
)
 
(12.9
)
(Loss) income from discontinued operations, net of income taxes
 
(3.2
)
 
(0.8
)
 
(1.8
)
 
(1.4
)
 
15.0

 
29.6

 
34.4

 
56.4

Net (loss) income
 
(195.9
)
 
(5.8
)
 
(140.7
)
 
(33.4
)
 
(7.2
)
 
25.2

 
4.0

 
43.5

Basic (loss) income per share:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loss from continuing operations
 
$
(1.41
)
 
$
(0.04
)
 
$
(1.00
)
 
$
(0.23
)
 
$
(0.16
)
 
$
(0.03
)
 
$
(0.22
)
 
$
(0.09
)
(Loss) income from discontinued operations
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.11

 
0.22

 
0.25

 
0.41

(Loss) income per share
 
$
(1.43
)
 
$
(0.04
)
 
$
(1.02
)
 
$
(0.24
)
 
$
(0.05
)
 
$
0.19

 
$
0.03

 
$
0.32

Diluted (loss) income per share:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loss from continuing operations
 
$
(1.41
)
 
$
(0.04
)
 
$
(1.00
)
 
$
(0.23
)
 
$
(0.16
)
 
$
(0.03
)
 
$
(0.22
)
 
$
(0.09
)
(Loss) income from discontinued operations
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.11

 
0.22

 
0.25

 
0.41

(Loss) income per share
 
$
(1.43
)
 
$
(0.04
)
 
$
(1.02
)
 
$
(0.24
)
 
$
(0.05
)
 
$
0.19

 
$
0.03

 
$
0.32

Dividends per common share
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
0.08

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
 
$
(195.9
)
 
$
(5.8
)
 
$
(140.7
)
 
$
(33.4
)
 
$
(7.2
)
 
$
25.2

 
$
4.0

 
$
43.5

Deferred income taxes
 
110.3

 
1.1

 
2.6

 
(12.6
)
 
33.9

 
0.7

 
0.7

 
(39.7
)
Change in inventories, net
 
(33.7
)
 
(6.2
)
 
7.5

 
85.1

 
(54.3
)
 
(46.2
)
 
(6.7
)
 
100.0

Historical
 
2016
 
2015
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
 
First
 
Second
 
Third
 
Fourth
Statements of operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
427.4

 
$
457.7

 
$
349.8

 
$
378.2

 
$
406.7

 
$
477.7

 
$
438.2

 
$
543.1

Cost of sales
 
345.5

 
369.5

 
308.3

 
332.7

 
331.3

 
382.8

 
368.3

 
454.6

Gross profit
 
81.9

 
88.2

 
41.5

 
45.5

 
75.4

 
94.9

 
69.9

 
88.5

Operating income (loss)
 
3.0

 
4.8

 
(133.5
)
 
(23.8
)
 
(8.3
)
 
14.2

 
(8.2
)
 
(13.6
)
(Loss) income from continuing operations before taxes
 
(82.8
)
 
(3.4
)
 
(143.5
)
 
(34.6
)
 
(32.9
)
 
(8.0
)
 
(35.7
)
 
(37.9
)
Provision (benefit) for taxes on income
 
121.5

 
0.7

 
(5.3
)
 
(2.6
)
 
(9.5
)
 
(1.7
)
 
(6.1
)
 
(25.3
)
Loss from continuing operations
 
(204.3
)
 
(4.1
)
 
(138.2
)
 
(32.0
)
 
(23.4
)
 
(6.3
)
 
(29.6
)
 
(12.6
)
(Loss) income from discontinued operations, net of income taxes
 
(3.2
)
 
(0.8
)
 
(1.8
)
 
(1.4
)
 
15.0

 
29.6

 
34.4

 
56.4

Net (loss) income
 
(207.5
)
 
(4.9
)
 
(140.0
)
 
(33.4
)
 
(8.4
)
 
23.3

 
4.8

 
43.8

Basic (loss) income per share:
 
-195.9

 
-5.8

 
-140.7

 
-21.4

 
-7.2

 
25.2

 
4

 
43.6

Loss from continuing operations
 
$
(1.50
)
 
$
(0.03
)
 
$
(1.00
)
 
$
(0.23
)
 
$
(0.17
)
 
$
(0.05
)
 
$
(0.22
)
 
$
(0.09
)
(Loss) income from discontinued operations
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.11

 
0.22

 
0.25

 
0.41

(Loss) income per share
 
$
(1.52
)
 
$
(0.04
)
 
$
(1.01
)
 
$
(0.24
)
 
$
(0.06
)
 
$
0.17

 
$
0.04

 
$
0.32

Diluted (loss) income per share:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

(Loss) income from continuing operations
 
$
(1.50
)
 
$
(0.03
)
 
$
(1.00
)
 
$
(0.23
)
 
$
(0.17
)
 
$
(0.05
)
 
$
(0.22
)
 
$
(0.09
)
(Loss) income from discontinued operations
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.11

 
0.22

 
0.25

 
0.41

(Loss) income per share
 
$
(1.52
)
 
$
(0.04
)
 
$
(1.01
)
 
$
(0.24
)
 
$
(0.06
)
 
$
0.17

 
$
0.04

 
$
0.32

Dividends per common share
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
0.08

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
 
$
(207.5
)
 
$
(4.9
)
 
$
(140.0
)
 
$
(33.4
)
 
$
(8.4
)
 
$
23.3

 
$
4.8

 
$
43.8

Deferred income taxes
 
124.1

 
1.1

 
2.6

 
(12.6
)
 
33.1

 
(0.3
)
 
1.0

 
(39.7
)
Change in inventories, net
 
(35.9
)
 
(7.1
)
 
6.8

 
85.1

 
(52.3
)
 
(43.3
)
 
(7.8
)
 
99.7


As discussed in Note 6, “Inventories,” in the fourth quarter of 2016, the Company changed its method of inventory costing for certain inventory to the FIFO method from the LIFO method. The Company applied this change in method of inventory costing by retrospectively adjusting the prior period financial statements. The tables above present selected financial information “as adjusted for impact of change to FIFO” and “historical.” Historical represents the results of operations prior to the change to FIFO, but after the classification of MFS to discontinued operations and adjustments to the annual periods discussed in Note 1 and adjustments to quarterly periods discussed in the paragraph below.

During the second quarter of 2016, the Company identified two adjustments to the previously issued financial statements for the three months ended March 31, 2016. In evaluating whether the Company’s previously issued consolidated financial statements were materially misstated, the Company considered the guidance in Accounting Standards Codification (“ASC”) Topic 250, “Accounting Changes and Error Corrections” and ASC Topic 250-10-S99-1, “Assessing Materiality.” The Company determined that these errors were not material to the Company's prior interim period consolidated financial statements and therefore, amending the previously filed report was not required. However, the Company determined that the impact of the corrections would be too significant to record within the second quarter of 2016. As such, the revision for the corrections is reflected in the financial information of the first quarter of 2016 and 2015, as applicable. The adjustments are as follows:
Adjustment related to accumulated other comprehensive loss (“AOCL”), whereby the Company had understated loss on debt extinguishment by $4.3 million, overstated income tax expense by $0.8 million, and understated loss from continuing operations by $3.5 million in the first quarter of 2016. The adjustment also resulted in an overstatement of AOCL and understatement of retained earnings by $2.6 million as of March 31, 2016.
Adjustment related to the classification of income tax expense between continuing operations and discontinued operations in the three months ended March 31, 2015, whereby the Company had understated the benefit for taxes on continuing operations and understated the income tax provision on discontinued operations by $2.1 million.

During the fourth quarter of 2016, the Company identified an adjustment to the previously issued financial statements for the three months ended March 31, 2016, six months ended June 30, 2016, and nine months ended September 30, 2016, related to a non-cash reclassification between continuing and discontinued operations with the operating section of the Statement of Cash Flows in the three months ended March 31, 2016, whereby the change in accrued expenses and other liabilities and net cash used for operating activities of continuing operations was understated by $16.2 million, and the net cash used for operating activities of discontinued operating activities was overstated by $16.2 million. In evaluating whether the Company’s previously issued consolidated financial statements were materially misstated, the Company considered the guidance in Accounting Standards Codification (“ASC”) Topic 250, “Accounting Changes and Error Corrections” and ASC Topic 250-10-S99-1, “Assessing Materiality.” The Company determined that these errors were not material to the Company's prior interim period consolidated financial statements and therefore, amending the previously filed reports was not required.
Subsequent Events
Subsequent Events
Subsequent Events
Schedule II: Valuation and Qualifying Accounts
Schedule II: Valuation and Qualifying Accounts
HE MANITOWOC COMPANY, INC
AND SUBSIDIARIES
Schedule II: Valuation and Qualifying Accounts
For The Years Ended December 31, 2016, 2015 and 2014
(dollars in millions)
 
 
Balance at
Beginning of
Year
 
Charge to
Costs and
Expenses
 
Utilization of
Reserve
 
Other, Primarily
Impact of
Foreign
Exchange
Rates
 
Balance at end
of Year
Year End December 31, 2014
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
$
15.1

 
$
4.9

 
$
(3.2
)
 
$
(1.4
)
 
$
15.4

Deferred tax valuation allowance
$
100.6

 
$
4.2

 
$
(9.8
)
 
$
(9.8
)
 
$
85.2

Year End December 31, 2015
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
$
15.4

 
$
2.5

 
$
(3.5
)
 
$
(1.6
)
 
$
12.8

Deferred tax valuation allowance
$
85.2

 
$
11.4

 
$
(1.9
)
 
$
(8.2
)
 
$
86.5

Year End December 31, 2016
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
$
12.8

 
$
1.0

 
$
(2.9
)
 
$
0.2

 
$
11.1

Deferred tax valuation allowance
$
86.5

 
$
199.2

 
$
(4.1
)
 
$
(12.0
)
 
$
269.6

Summary of Significant Accounting Policies (Policies)
All short-term investments purchased with an original maturity of three months or less are considered cash equivalents. 
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 are valued at the lower of cost or market value. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. In the fourth quarter of 2016, the Company changed its method of inventory costing for certain inventory in the U.S. to the first-in, first-out (FIFO) method from the last-in, last-out (LIFO) method. The Company believes that the FIFO method is preferable as it results in uniformity across its global operations, aligns with how the Company internally manages inventory, provides better matching of revenues and expenses and improves comparability with its peers. The Company's other locations determine costs using the FIFO method. The impact of this change in accounting principle has been reflected through retrospective application to the financial statements for each period presented, and is further explained in Note 6, “Inventories”.
The Company accounts for its goodwill and other intangible assets under the guidance of ASC Topic 350-10, “Intangibles — Goodwill and Other.” Under ASC Topic 350-10, goodwill is not amortized, but it is tested for impairment annually during the fourth quarter, or more frequently, as events dictate. See additional discussion of impairment testing under “Impairment of Long-Lived Assets” below. The Company’s other intangible assets with indefinite lives, including trademarks and tradenames and in-place distributor networks, are not amortized but are also tested for impairment annually, or more frequently, as events dictate. The Company’s other intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable.
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 are then depreciated. 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 estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. 
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 20
Computer hardware and software
2 - 10
Rental cranes
5 - 15

Property, plant and equipment also include cranes accounted for as operating leases. Equipment accounted for as operating leases includes equipment leased directly to the customer and equipment for which the Company has assisted in the financing arrangement, whereby it has guaranteed more than insignificant residual value or made a buyback commitment. 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 so that the net book value at the end of the period equals the buyback amount or the residual value amount.
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC Topic 360-10-5.  ASC Topic 360-10-5 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.
For property, plant and equipment and other long-lived assets, other than goodwill and other indefinite lived intangible assets, the Company performs undiscounted operating cash flow analysis to determine impairments. If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the fair value to the net book value of the assets.  Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell.
Historically, the annual goodwill impairment testing was performed during the second quarter. The Company performed this test during the second quarter with no impairment. Subsequent to the impairment test performed during the second quarter, the Company moved the annual test to the fourth quarter on a prospective basis in order to align more closely to its internal forecasting cycle. Based on the results of that test, no impairment was indicated. The Company tests for impairment of goodwill annually according to a two-step approach. In the first step, the Company estimates the fair values of its reporting units using the present value of future cash flows approach, subject to a comparison for reasonableness to its market capitalization at the date of valuation. If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit used in the first step less the fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair market 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. 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. 
Estimated 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.
The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Such accruals are adjusted as information develops or circumstances change.  Costs of long-term expenditures for environmental remediation obligations are discounted to their present value when the timing of cash flows are estimable.
The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions when losses are probable and reasonably estimable. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company’s best judgment and 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 (collectively referred to as IBNR) utilizing actuarially developed estimates.
The financial statements of the Company’s non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items. Resulting translation adjustments are recorded to Accumulated Other Comprehensive Income (AOCI) as a component of Manitowoc stockholders’ equity.
The Company has written 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 Topic 815-10, “Derivatives and Hedging.” The fair values of all derivatives are recorded in the Consolidated Balance Sheets. The change in a derivative’s fair value is recorded each period in current earnings or AOCI depending on whether the derivative is designated and qualifies as a cash flow hedge transaction.
During 2016, 2015 and 2014, minimal amounts were recognized in earnings due to ineffectiveness of certain commodity hedges. 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, commodity contracts and interest rate contracts designated as cash flow hedges, net of income taxes.
Cash Flow Hedges 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, commodity contracts and interest rate contracts, respectively.  These instruments are designated as cash flow hedges in accordance with ASC Topic 815-10 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.
Fair Value Hedges The Company periodically enters into interest rate swaps designated as a hedge of the fair value of a portion of its fixed rate debt. These hedges effectively result in changing a portion of its fixed rate debt to variable interest rate debt. Both the swaps and the debt are recorded in the Consolidated Balance Sheets at fair value. The change in fair value of the swaps should exactly offset the change in fair value of the hedged debt, with no net impact to earnings. Interest expense of the hedged debt is recorded at the variable rate in earnings. See Note 11, “Debt” for further discussion of fair value hedges.
The Company selectively hedges cash inflows and outflows that are subject to foreign currency exposure from the date of transaction to the related payment date. The hedges for these foreign currency accounts receivable and accounts payable are recorded in the Consolidated Balance Sheets at fair value. Gains or losses due to changes in fair value are recorded as an adjustment to earnings in the Consolidated Statements of Operations.
The Company recognizes expense for all stock-based compensation with graded vesting on a straight-line basis over the vesting period of the entire award.
Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered. Shipping and handling fees are reflected in net sales, and shipping and handling costs are reflected in cost of sales in the Consolidated Statements of Operations.
The Company enters into transactions with customers that provide for residual value guarantees and buyback commitments on certain transactions. The Company records transactions which it provides significant residual value guarantees and any buyback commitments as operating leases. Net revenues in connection with the initial transactions are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the customer’s third party financing agreement.  See Note 19, “Guarantees.”
The Company also leases cranes to customers under operating lease terms. Revenue from operating leases is recognized ratably over the term of the lease, and leased cranes are depreciated over their estimated useful lives.
Research and development costs are charged to expense as incurred
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.
Basic earnings per share is computed by dividing net earnings attributable to Manitowoc by the weighted average number of common shares outstanding during each year or period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding is increased to include shares of restricted stock, performance shares and the number of additional shares that would have been outstanding if stock options were exercised and the proceeds from such exercise were used to acquire shares of common stock at the average market price during the year or period.
Comprehensive income (loss) includes, in addition to net earnings, 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.
Credit extended to customers through trade accounts receivable potentially subjects the Company to risk.  This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas. However, a significant amount of the Company’s receivables are with distributors and contractors in the construction industry, customers servicing the U.S. steel industry and government agencies. The Company currently does not foresee a significant credit risk associated with these individual groups of receivables but continues to monitor the exposure, if any.
In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04 “Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment.” This ASU simplifies the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In November 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force).” The amendments of this ASU address the diversity of presentation of restricted cash by requiring a statement of cash flows to explain the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 will be effective for fiscal years beginning after December 15, 2017. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In October 2016, the FASB issued ASU No. 2016-16 - “Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory,” which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06 will be effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.
In August 2016, the FASB issued ASU No. 2016-15 - “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice and affects all entities required to present a statement of cash flows under Topic 230. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09 - “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This was further clarified with technical corrections issued within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, and ASU 2016-20. The new revenue recognition guidance was issued to provide a single, comprehensive revenue recognition model for all contracts with customer. Under the new guidance, an entity will recognize revenue to depict the transfer of promised goods or services to customer at an amount that the entity expects to be entitled to in exchange for those goods or services. A five step model has been introduced for an entity to apply when recognizing revenue. The new guidance also includes enhanced disclosure requirements, and is effective January 1, 2018, with early adoption permitted as of January 1, 2017. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented, or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Consolidated Statement of Changes in Stockholder's Equity. Manitowoc plans to adopt the new guidance effective January 1, 2018 utilizing the modified retrospective approach and is in the process of evaluating the financial impact of the adoption on its financial statements. The Company expects to conclude its assessment on the impact of adoption in the first half of 2017.
In March 2016, the FASB issued ASU 2016-09 - “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This update is part of the Simplification Initiative, and its objective is to identify, evaluate and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving usefulness of the information provided to users of financial statements. The update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The effective date for this ASU is for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.
In March 2016, the FASB issued ASU No. 2016-06 - “Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments.” The amendments clarify the steps required to assess whether a call or put option meets the criteria for bifurcation as an embedded derivative. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02 - “Leases”, which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In January 2016, the FASB issued ASU 2016-01 - “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. Most significantly, ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of an investee) to be measured at fair value with changes in fair value recognized in net income (loss). ASU 2016-01 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In August 2015, the FASB issued ASU No. 2015-15 - “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This update clarifies the guidance related to accounting for debt issuance costs related to line-of-credit arrangements. In April 2015, the FASB issued ASU 2015-03, which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability; see further discussion of ASU 2015-03 below. The guidance in ASU 2015-03 did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The guidance was applied on a retrospective basis. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In July 2015, the FASB issued ASU No. 2015-11 - “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This update changes the guidance on accounting for inventory accounted for on a first-in first-out (FIFO) basis. Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out (LIFO) basis. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements.
In April 2015, the FASB issued ASU No. 2015-05 - “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This update provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In April 2015, the FASB issued ASU No. 2015-03 - “Simplifying the Presentation of Debt Issuance Costs.” To simplify the presentation of debt issuance costs, this update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, rather than as a deferred asset. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The amendments in this ASU effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The guidance is applied on a retrospective basis. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In February 2015, the FASB issued ASU No. 2015-02 - “Consolidation (Topic 820)—Amendments to the Consolidation Analysis.” This update amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In January 2015, the FASB issued ASU No. 2015-01 - “Income Statement—Extraordinary and Unusual Items.” This update eliminates from GAAP the concept of extraordinary items. ASU 2015-01 is effective for the first interim period within fiscal years beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this guidance as required beginning January 1, 2016. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements-Going Concern.” This ASU provided guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective in the first annual period ending after December 15, 2016, with early adoption permitted. The adoption of this guidance did not have a material impact on our consolidated financial statements.
Summary of Significant Accounting Policies (Tables)
Other intangible assets are amortized straight-line over the following estimated useful lives:
 
Useful lives
Patents
3-20 years
Engineering drawings
3-15 years
Customer relationships
10 years
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 20
Computer hardware and software
2 - 10
Rental cranes
5 - 15
Discontinued Operations (Tables)
Summary of Selected Financial Data of Businesses Which are Classified as Discontinued Operations
The following table presents the financial results of MFS through the date of the Spin-Off for the indicated periods and do not include corporate overhead allocations:
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS
 
 
 
 
 
 
(in millions)
 
2016
 
2015
 
2014
Net sales
 
$
219.6

 
$
1,570.1

 
$
1,581.3

 
 
 
 
 
 
 
Cost of sales
 
141.5

 
1,065.6

 
1,070.7

Engineering, selling and administrative expenses
 
48.3

 
271.3

 
284.2

Amortization of intangible assets
 
5.2

 
31.4

 
31.8

Asset impairment expense
 

 
9.0

 
1.1

Restructuring expense
 
0.3

 
4.6

 
2.5

Separation expense
 
27.7

 
39.4

 

Other
 

 
0.9

 
0.4

Total operating costs and expenses
 
223.0

 
1,422.2

 
1,390.7

Operating (loss) income
 
(3.4
)
 
147.9

 
190.6

Other (expense) income
 
(2.2
)
 
23.4

 
(1.7
)
(Loss) income from discontinued operations before income taxes
 
(5.6
)
 
171.3

 
188.9

Provision for taxes on income
 
0.6

 
35.9

 
26.5

(Loss) income from discontinued operations, net of income taxes (1)
 
$
(6.2
)
 
$
135.4

 
$
162.4

 
(1)
For the year ended December 31, 2016, 2015 and 2014, the Company recorded net (losses) income of $(1.0) million, $0.0 million and $(1.0) million, respectively, from various other businesses disposed of prior to 2014. This is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the businesses operated as stand-alone entities.
No assets or liabilities of MFS are reflected on the Company's Consolidated Balance Sheet as of December 31, 2016. The assets and liabilities of MFS have been classified as discontinued operations and are reflected as such on the Company's Consolidated Balance Sheet as of December 31, 2015. These amounts consisted of the following carrying amounts in each major class at December 31, 2015:
Carrying amounts of major classes of assets and liabilities included as part of discontinued operations related to MFS
 
 
(in millions)
 
 
December 31,
2015
Assets
 
 
 
Cash and cash equivalents
 
 
$
31.9

Restricted cash
 
 
0.6

Accounts receivable - net
 
 
63.8

Inventories - net
 
 
145.9

Other current assets
 
 
12.0

Property, plant and equipment - net
 
 
116.3

Goodwill
 
 
845.8

Other intangible assets - net
 
 
519.5

Other non-current assets
 
 
16.2

Long-term assets held for sale
 
 
3.7

Total major classes of assets of discontinued operations
 
 
$
1,755.7

 
 
 
 
Liabilities
 
 
 
Accounts payable and accrued expenses
 
 
$
271.6

Current portion of long-term debt
 
 
0.4

Other current liabilities
 
 
40.0

Long-term debt
 
 
2.3

Deferred income taxes
 
 
167.9

Pension obligation
 
 
29.3

Postretirement health and other benefit obligations
 
 
3.0

Other non-current liabilities
 
 
17.3

Total major classes of liabilities of discontinued operations
 
 
$
531.8

Fair Value of Financial Instruments (Tables)
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy
The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and 2015 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, 2016
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current Assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
0.2

 
$

 
$
0.2

Commodity contracts
 

 
0.2

 

 
0.2

Total current assets at fair value
 
$

 
$
0.4

 
$

 
$
0.4


 
 
 
 
 
 
 
 
Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
1.0

 
$

 
$
1.0

Total current liabilities at fair value
 
$

 
$
1.0

 
$

 
$
1.0

 
 
Fair Value as of December 31, 2015
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current Assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
0.3

 
$

 
$
0.3

Total current assets at fair value
 
$

 
$
0.3

 
$

 
$
0.3


 
 
 
 
 
 
 
 
Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
1.1

 
$

 
$
1.1

Commodity contracts
 

 
0.7

 

 
0.7

Interest rate swap contracts: Float-to-fixed
 

 
1.7

 

 
1.7

Total current liabilities at fair value
 
$

 
$
3.5

 
$

 
$
3.5


 
 
 
 
 
 
 
 
Non-current Liabilities:
 
 

 
 

 
 

 
 

Interest rate swap contracts: Float-to-fixed
 
$

 
$
0.6

 
$

 
$
0.6

Foreign currency exchange contract
 

 
0.1

 

 
0.1

Total non-current liabilities at fair value
 
$

 
$
0.7

 
$

 
$
0.7

Derivative Financial Instruments (Tables)
The fair value of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet as of December 31, 2015 was as follows:
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$
0.3

Total derivatives designated as hedging instruments
 
$
0.3

 
ASSET DERIVATIVES
 (in millions)
Balance Sheet Location
Fair Value
Derivatives NOT designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$

Total derivatives NOT designated as hedging instruments
 
$

 
 
 

Total asset derivatives
 
$
0.3

The fair value of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet as of December 31, 2016 was as follows:
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$
0.1

Commodity contracts
Other current assets
0.2

Total derivatives designated as hedging instruments
 
$
0.3

 
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives NOT designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$
0.1

Total derivatives NOT designated as hedging instruments
 
$
0.1

 
 
 

Total asset derivatives
 
$
0.4

The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2015 was as follows:
 
LIABILITY DERIVATIVES
 (in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.2

Commodity contracts
Accounts payable and accrued expenses
0.7

Interest rate swap contracts: Float-to-fixed
Accounts payable and accrued expenses
1.7

Foreign exchange contracts
Other non-current liabilities
0.1

Interest rate swap contracts: Float-to-fixed
Other non-current liabilities
0.6

Total derivatives designated as hedging instruments
 
$
3.3

 
 
LIABILITY DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives NOT designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.9

Total derivatives NOT designated as hedging instruments
 
$
0.9

 
 
 

Total liability derivatives
 
$
4.2

The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2016 was as follows:
 
LIABILITY DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.9

Total derivatives designated as hedging instruments
 
$
0.9

 
LIABILITY DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives NOT designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.1

Total derivatives NOT designated as hedging instruments
 
$
0.1

 
 
 

Total liability derivatives
 
$
1.0

As of December 31, 2015, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions:
Designated Hedging Instruments
 
 
 
 
 
 
Commodity
 
Units Hedged
 
Unit
 
Type
Natural Gas
 
175,617
 
MMBtu
 
Cash Flow
Steel
 
4,811
 
Short Tons
 
Cash Flow
Designated Hedging Instruments
 
 
 
 
Currency
 
Units Hedged
 
Type
South Korean Won
 
1,533,257,930
 
Cash Flow
Singapore Dollar
 
1,800,000
 
Cash Flow
Japanese Yen
 
245,915,700
 
Cash Flow
As of December 31, 2016, the Company had the following outstanding commodity swap and currency forward contracts that were entered into as hedges of forecasted transactions:
Designated Hedging Instruments
 
 
 
 
 
 
Commodity
 
Units Hedged
 
Unit
 
Type
Natural Gas
 
26,807
 
MMBtu
 
Cash Flow
Steel
 
3,190
 
Short Tons
 
Cash Flow

Designated Hedging Instruments
 
 
 
Currency
 
Units Hedged
 
Type
Australian Dollar
 
611,143

 
Cash Flow
European Euro
 
9,834,120

 
Cash Flow
South Korean Won
 
218,408,100

 
Cash Flow
Singapore Dollar
 
900,000

 
Cash Flow
United States Dollar
 
2,311,697

 
Cash Flow
Japanese Yen
 
65,502,800

 
Cash Flow

For derivative instruments that are not designated as hedging instruments under ASC Topic 815-10, the gains or losses on the derivatives are recognized in current earnings within other (expense) income, net. As of December 31, 2015, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
Non Designated Hedging Instruments
 
 
 
 
Currency
 
Units Hedged
 
Recognized Location
 
Purpose
European Euro
 
20,490,320
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
United States Dollar
 
17,321,106
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
Japanese Yen
 
70,518,463
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
Singapore Dollar
 
500,000
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
British Pound Sterling
 
4,840,238
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
As of December 31, 2016, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
Non Designated Hedging Instruments
 
 
 
 
 
Currency
 
Units Hedged
 
 
Recognized Location
 
Purpose
European Euro
 
10,502,111
 
 
Other (expense) income, net
 
Accounts payable and receivable settlement
United States Dollar
 
15,318,000
 
 
Other (expense) income, net
 
Accounts payable and receivable settlement
Inventories (Tables)
The components of inventories at December 31, 2016 and December 31, 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Raw materials
 
$
109.3

 
$
155.3

Work-in-process
 
88.4

 
116.3

Finished goods
 
270.9

 
251.7

Total inventories — gross
 
468.6

 
523.3

Excess and obsolete inventory reserve
 
(39.6
)
 
(34.1
)
Net inventories
 
$
429.0

 
$
489.2

As a result of the retrospective adjustment of the change in accounting principle, certain amounts in the Company's consolidated financial statements for the years ended December 31, 2015 and 2014 were adjusted as follows:
For the years ended December 31,
 
 
 
2015
 
 
 
 
 
2014
 
 
 
 
Impact of Change
 
Impact of Change
In millions (except per share data)
 
Historical
 
to FIFO
 
As adjusted
 
Historical
 
to FIFO
 
As adjusted
Cost of sales
 
$
1,537.0

 
$
(3.5
)
 
$
1,533.5

 
$
1,837.6

 
$
0.4

 
$
1,838.0

Operating (loss) income
 
(15.9
)
 
3.5

 
(12.4
)
 
107.5

 
(0.4
)
 
107.1

Loss from continuing operations before taxes
 
(114.5
)
 
3.5

 
(111.0
)
 
(20.0
)
 
(0.4
)
 
(20.4
)
Benefit for income taxes
 
(42.6
)
 
1.5

 
(41.1
)
 
(18.0
)
 
0.2

 
(17.8
)
Loss from continuing operations
 
(71.9
)
 
2.0

 
(69.9
)
 
(2.0
)
 
(0.6
)
 
(2.6
)
Net (loss) income
 
63.5

 
2.0

 
65.5

 
148.4

 
(0.6
)
 
147.8

Net (loss) income attributable to Manitowoc common shareholders
 
63.5

 
2.0

 
65.5

 
144.5

 
(0.6
)
 
143.9

Basic (loss) income per share from continuing operations
 
(0.53
)
 
0.02

 
(0.51
)
 
(0.04
)
 
(0.01
)
 
(0.05
)
Diluted (loss) income per share from continuing operations
 
(0.53
)
 
0.02

 
(0.51
)
 
(0.04
)
 
(0.01
)
 
(0.05
)
The Consolidated Balance Sheet for the year ended December 31, 2015 was adjusted as follows:
 
 
Impact of Change
In millions
 
Historical
 
to FIFO
 
As adjusted
Inventories
 
$
452.6

 
$
36.6

 
$
489.2

Other non-current assets
 
191.2

 
(13.8
)
 
177.4

Retained earnings
 
539.5

 
22.8

 
562.3

The Consolidated Statements of Cash Flows for the years ended December 31, 2015 and 2014 were adjusted as follows:
For the years ended December 31,
 
 
 
2015
 
 
 
 
 
2014
 
 
 
 
Impact of Change
 
Impact of Change
In millions
 
Historical
 
to FIFO
 
As adjusted
 
Historical
 
to FIFO
 
As adjusted
Net (loss) income
 
$
63.5

 
$
2.0

 
$
65.5

 
$
148.4

 
$
(0.6
)
 
$
147.8

Deferred income taxes
 
(5.9
)
 
1.5

 
(4.4
)
 
11.3

 
0.2

 
11.5

Change in inventories, net
 
(3.7
)
 
(3.5
)
 
(7.2
)
 
32.2

 
0.4

 
32.6

Property, Plant and Equipment (Tables)
Components of Property, Plant and Equipment
The components of property, plant and equipment at December 31, 2016 and December 31, 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Land
 
$
23.6

 
$
23.7

Building and improvements
 
225.0

 
218.7

Machinery, equipment and tooling
 
292.6

 
274.4

Furniture and fixtures
 
16.7

 
16.6

Computer hardware and software
 
126.0

 
132.4

Rental cranes
 
89.0

 
99.5

Construction in progress
 
16.7

 
81.0

Total cost
 
789.6

 
846.3

Less accumulated depreciation
 
(480.8
)
 
(435.6
)
Property, plant and equipment-net
 
$
308.8

 
$
410.7

Goodwill and Other Intangible Assets (Tables)
The changes in carrying amount of goodwill for the years ended December 31, 2016 and December 31, 2015 are as follows:
(in millions)
 
 
2016
 
2015
Gross balance as of January 1,
 
 
$
306.5

 
$
325.3

Foreign currency impact
 
 
(6.9
)
 
(18.8
)
Net balance as of December 31,
 
 
$
299.6

 
$
306.5

The gross carrying amount and accumulated amortization of the Company’s intangible assets other than goodwill are as follows as of December 31, 2016 and December 31, 2015.
 
 
December 31, 2016
 
December 31, 2015
(in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
Trademarks and tradenames
 
$
92.4

 
$

 
$
92.4

 
$
94.2

 
$

 
$
94.2

Customer relationships
 
10.3

 
(7.8
)
 
2.5

 
10.4

 
(7.1
)
 
3.3

Patents
 
28.5

 
(27.4
)
 
1.1

 
29.1

 
(26.6
)
 
2.5

Engineering drawings
 
10.0

 
(9.9
)
 
0.1

 
10.2

 
(9.3
)
 
0.9

Distribution network
 
18.0

 

 
18.0

 
18.4

 

 
18.4

Other intangibles
 
0.2

 
(0.2
)
 

 
0.3

 
(0.3
)
 

 
 
$
159.4

 
$
(45.3
)
 
$
114.1

 
$
162.6

 
$
(43.3
)
 
$
119.3

Accounts Payable and Accrued Expenses (Tables)
Schedule of Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses at December 31, 2016 and December 31, 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Trade accounts payable
 
$
157.7

 
$
268.5

Employee related expenses
 
28.1

 
35.0

Accrued vacation
 
21.8

 
25.1

Miscellaneous accrued expenses
 
113.6

 
107.7

 
 
$
321.2

 
$
436.3

Debt (Tables)
Outstanding debt at December 31, 2016 and December 31, 2015 is summarized as follows:
(in millions)
 
2016
 
2015
Term loan A
 
$

 
$
312.8

Term loan B
 

 
119.5

Senior notes due 2020
 

 
613.1

Senior notes due 2022
 

 
299.2

Senior notes due 2021
 
249.8

 

Other
 
35.7

 
66.3

Deferred financing costs
 
(4.0
)
 
(13.3
)
Total debt
 
281.5

 
1,397.6

Less current portion and short-term borrowings
 
(12.4
)
 
(67.2
)
Long-term debt
 
$
269.1

 
$
1,330.4

The aggregate scheduled maturities of outstanding debt obligations in subsequent years are as follows (in millions):
Year
 
 
2017
 
$
12.4

2018
 
5.8

2019
 
5.7

2020
 
3.8

2021
 
263.3

Thereafter
 
0.7

Total
 
$
291.7

Income Taxes (Tables)
from continuing operations are summarized below:
(in millions)
 
2016
 
2015
 
2014
(Loss) income from continuing operations before income taxes:
 
 

 
 

 
 

Domestic
 
$
(293.0
)
 
$
(184.0
)
 
$
(93.3
)
Foreign
 
24.9

 
73.0

 
72.9

Total
 
$
(268.1
)
 
$
(111.0
)
 
$
(20.4
)
Income tax provision (benefit) from continuing operations is summarized as follows:
(in millions)
 
2016
 
2015
 
2014
Current:
 
 

 
 

 
 

Federal and state
 
$
(13.0
)
 
$
(48.6
)
 
$
(41.0
)
Foreign
 
12.1

 
11.9

 
11.7

Total current
 
$
(0.9
)
 
$
(36.7
)
 
$
(29.3
)
Deferred:
 
 

 
 

 
 

Federal and state
 
$
98.7

 
$
(8.3
)
 
$
16.7

Foreign
 
2.7

 
3.9

 
(5.2
)
Total deferred
 
$
101.4

 
$
(4.4
)
 
$
11.5

Provision (benefit) for taxes on income
 
$
100.5

 
$
(41.1
)
 
$
(17.8
)
The federal statutory income tax rate is reconciled to the Company’s effective income tax rate for continuing operations for the years ended December 31, 2016, 2015 and 2014 as follows:
 
 
2016
 
2015
 
2014
Federal income tax at statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State income provision (benefit)
 
2.3

 
5.7

 
16.5

Manufacturing & research incentives
 
2.0

 
(0.4
)
 
6.1

Taxes on foreign income which differ from the U.S. statutory rate
 
3.0

 
3.2

 
44.1

Adjustments for unrecognized tax benefits
 
(4.0
)
 
1.5

 
51.5

Adjustments for valuation allowances
 
(69.8
)
 
(8.5
)
 
(25.0
)
Spin-off tax costs
 
(1.3
)
 
(1.8
)
 

Change in assertion over permanently reinvest foreign earnings
 

 

 
(26.4
)
Other items
 
(4.7
)
 
2.3

 
(14.5
)
Effective tax rate
 
(37.5
)%
 
37.0
 %
 
87.3
 %
(in millions)
 
2016
 
2015
Non-current deferred tax assets (liabilities):
 
 
 
 
   Inventories
 
$
14.2

 
$
16.2

   Accounts receivable
 
(4.6
)
 
(6.9
)
   Property, plant and equipment
 
19.0

 
(10.6
)
   Intangible assets
 
(35.9
)
 
(37.8
)
   Deferred employee benefits
 
71.8

 
77.2

   Product warranty reserves
 
6.1

 
6.9

   Product liability reserves
 
7.8

 
7.7

   Tax credits
 
4.9

 
0.4

   Loss carryforwards
 
145.4

 
102.1

   Deferred revenue
 
10.8

 
10.2

   Other
 
(1.7
)
 
(8.1
)
   Total non-current deferred tax liabilities
 
237.8

 
157.3

   Less valuation allowance
 
(269.6
)
 
(86.5
)
   Net deferred tax liabilities, non-current
 
$
(31.8
)
 
$
70.8


The net deferred tax assets (liabilities) are reflected in the Consolidated Balance Sheets for the years ended December 31, 2016 and December 31, 2015 as follows:
(in millions)
 
2016
 
2015
Long-term income tax assets, included in other non-current assets
 
$
4.8

 
$
96.4

Long-term deferred income tax liability
 
(36.6
)
 
(25.6
)
Net deferred income tax liability
 
$
(31.8
)
 
$
70.8

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The following table provides the open tax years for which the Company could be subject to income tax examination by the tax authorities in its major jurisdictions:
Jurisdiction
 
Open Years
U.S. Federal
 
2012 — 2016
China
 
2007 — 2016
France
 
2013 — 2016
Germany
 
2011 — 2016
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 is as follows:
(in millions)
 
2016
 
2015
 
2014
Balance at beginning of year
 
$
19.4

 
$
20.8

 
$
29.5

Additions based on tax positions related to the current year
 
1.1

 
1.3

 
1.5

Additions for tax positions of prior years
 
5.0

 
0.2

 
3.2

Reductions for tax positions of prior years
 
(9.3
)
 

 
(2.7
)
Reductions based on settlements with taxing authorities
 

 

 
(5.0
)
Reductions for lapse of statute
 
(0.4
)
 
(2.9
)
 
(5.7
)
Balance at end of year
 
$
15.8

 
$
19.4

 
$
20.8

Earnings Per Share (Tables)
Reconciliation of the Average Shares Outstanding Used to Compute Basic and Diluted Earnings per Share
The following is a reconciliation of the average shares outstanding used to compute basic and diluted earnings per share: 
 
 
2016
 
2015
 
2014
Basic weighted average common shares outstanding
 
137,767,109

 
136,036,192

 
134,934,892

Effect of dilutive securities - stock awards
 

 

 

Diluted weighted average common shares outstanding
 
137,767,109

 
136,036,192

 
134,934,892

Equity (Tables)
The components of accumulated other comprehensive income (loss) as of December 31, 2016 and 2015 are as follows:
(in millions)
 
2016
 
2015
Foreign currency translation
 
$
(110.8
)
 
$
(121.4
)
Derivative instrument fair market value, net of income taxes of $(0.3) and $(2.2)
 
(0.3
)
 
(3.8
)
Employee pension and postretirement benefit adjustments, net of income taxes of $(19.0) and $(35.2)
 
(51.8
)
 
(82.6
)
 
 
$
(162.9
)
 
$
(207.8
)

A reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component for the year ended December 31, 2015 and December 31, 2016 is as follows:
(in millions)
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Foreign Currency Translation
 
Total
Balance at December 31, 2014
 
$
(6.3
)
 
$
(95.0
)
 
$
(29.2
)
 
$
(130.5
)
Other comprehensive loss before reclassifications
 
14.0

 
17.9

 
(92.2
)
 
(60.3
)
Amounts reclassified from accumulated other comprehensive income
 
(11.5
)
 
(5.5
)
 

 
(17.0
)
Net current period other comprehensive income
 
2.5

 
12.4

 
(92.2
)
 
(77.3
)
Balance at December 31, 2015
 
(3.8
)
 
(82.6
)
 
(121.4
)
 
(207.8
)
Other comprehensive loss before reclassifications
 
(2.9
)
 
(8.6
)
 
(20.4
)
 
(31.9
)
Amounts reclassified from accumulated other comprehensive income
 
4.3

 
4.5

 

 
8.8

Net current period other comprehensive loss
 
1.4

 
(4.1
)
 
(20.4
)
 
(23.1
)
Distribution of MFS
 
2.1

 
34.9

 
31.0

 
68.0

Balance at December 31, 2016
 
$
(0.3
)
 
$
(51.8
)
 
$
(110.8
)
 
$
(162.9
)
A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2016 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
(0.9
)
 
Cost of sales
  Commodity contracts
 
(0.2
)
 
Cost of sales
  Interest rate swap contracts: Float-to-fixed
 
(4.3
)
 
Interest expense
 
 
(5.4
)
 
Total before tax
 
 
1.1

 
Tax benefit
 
 
$
(4.3
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
  Actuarial losses
 
$
(4.6
)
(a)
 
  Amortization of prior service cost
 
(0.1
)
(a)
 
 
 
(4.7
)
 
Total before tax
 
 
0.2

 
Tax benefit
 
 
$
(4.5
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(8.8
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details).

A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2015 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
(11.7
)
 
Cost of sales
  Commodity contracts
 
(4.0
)
 
Cost of sales
  Interest rate swap contracts: Float-to-fixed
 
(2.6
)
 
Interest expense
 
 
(18.3
)
 
Total before tax
 
 
6.8

 
Tax expense
 
 
$
(11.5
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
  Actuarial losses
 
$
(7.5
)
(a)
 
  Amortization of prior service cost
 
(0.1
)
(a)
 
 
 
(7.6
)
 
Total before tax
 
 
2.1

 
Tax benefit
 
 
$
(5.5
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(17.0
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details).
A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2014 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
(2.2
)
 
Cost of sales
  Commodity contracts
 
(0.1
)
 
Cost of sales
  Interest rate swap contracts: Float-to-fixed
 
(1.8
)
 
Interest expense
 
 
(4.1
)
 
Total before tax
 
 
1.5

 
Tax expense
 
 
$
(2.6
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
  Actuarial losses
 
$
(4.3
)
(a)
 
  Amortization of prior service cost
 
0.2

(a)
 
 
 
(4.1
)
 
Total before tax
 
 
1.0

 
Tax benefit
 
 
$
(3.1
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(5.7
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details).


Stock-Based Compensation (Tables)
A summary of the Company’s stock option activity is as follows (in millions, except weighted average exercise price per share, which has been adjusted for the Spin-Off):
 
 
Shares
 
Weighted
Average
Exercise Price
 
Aggregate
Intrinsic
Value
Options outstanding as of January 1, 2015
 
5.6

 
$
18.23

 
 

Granted
 
0.7

 
21.02

 
 

Exercised
 
(0.5
)
 
9.63

 
 

Cancelled
 
(0.3
)
 
23.70

 
 

Options outstanding as of December 31, 2015
 
5.5

 
19.04

 
 

Granted
 
1.8

 
4.30

 
 

Exercised
 
(2.9
)
 
3.27

 
 

Forfeited
 
(0.3
)
 
4.21

 
 
Cancelled
 
(0.2
)
 
4.32

 
 

Options outstanding as of December 31, 2016
 
3.9

 
$
4.44

 
$
7.5

Options exercisable as of:
 
 

 
 

 
 

December 31, 2016
 
2.0

 
$
4.55

 
$
3.9

The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2016 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price):
 
 
Outstanding
 
Weighted
Average
Remaining
Contractual
 
Weighted
Average
 
Exercisable
 
Weighted
Average
Range of Exercise Price per Share
 
Options
 
Life (Years)
 
Exercise Price
 
Options
 
Exercise Price
$0.90 - $6.00
 
3.2

 
7.0
 
$
3.89

 
1.3

 
$
3.25

$6.01 - $7.00
 
0.4

 
0.3
 
6.02

 
0.4

 
6.02

$7.01 - $9.00
 
0.3

 
1.0
 
7.90

 
0.3

 
7.90

$9.01 - $9.76
 

 
0.9
 
9.44

 

 
9.44

 
 
3.9

 
3.1
 
$
4.44

 
2.0

 
$
4.55

The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing method with the following assumptions:
 
 
2016
 
2015
 
2014
Expected Life (years)
 
6.5

 
6.0

 
6.0

Risk-free Interest rate
 
1.6
%
 
1.8
%
 
1.9
%
Expected volatility
 
45.0
%
 
56.0
%
 
55.0
%
Expected dividend yield
 
%
 
0.3
%
 
0.4
%
A summary of activity for restricted stock awards for the year ended December 31, 2016 is as follows (in millions except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2016
 
0.4

 
$
21.73

Granted
 

 

Vested
 
(0.2
)
 
21.73

Forfeited
 

 
21.73

Unvested as of December 31, 2016
 
0.2

 
$
21.73

A summary of activity for restricted stock units for the year ended December 31, 2016 is as follows (in millions except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2016
 
0.7

 
$
25.53

Granted
 
1.4

 
5.36

Vested
 
(0.2
)
 
22.43

Forfeited
 
(0.2
)
 
11.07

Unvested as of December 31, 2016
 
1.7

 
$
11.02

Segments (Tables)
Schedule of Net Sales from Continuing Operations and Long-Lived Asset Information by Geographic Area
Long-lived assets are defined as property, plant and equipment-net and other non-current assets, excluding goodwill, other intangible assets-net and deferred tax assets.
 
Net Sales
 
Long-Lived Assets
(in millions)
2016
 
2015
 
2014
 
2016
 
2015
United States
$
641.3

 
$
784.5

 
$
951.3

 
$
152.9

 
$
258.6

Other North America
61.9

 
87.2

 
156.9

 

 

Europe
520.7

 
418.9

 
554.3

 
129.9

 
135.3

Asia
159.1

 
184.8

 
221.2

 
50.5

 
86.3

Middle East
119.6

 
193.8

 
212.7

 
1.4

 
1.5

Central and South America
24.9

 
63.7

 
93.1

 
10.8

 
11.8

Africa
39.7

 
80.0

 
54.5

 

 

South Pacific and Caribbean
8.2

 
5.9

 
7.3

 

 
3.8

Australia
37.7

 
46.9

 
53.9

 
0.4

 
0.1

Total
$
1,613.1

 
$
1,865.7

 
$
2,305.2

 
$
345.9

 
$
497.4

Guarantees (Tables)
Summary of Warranty Activity
Below is a table summarizing the warranty activity for the years ended December 31, 2016 and 2015:
(in millions)
 
2016
 
2015
Balance at beginning of period
 
$
32.4

 
$
36.1

Accruals for warranties issued during the period
 
20.4

 
22.4

Settlements made (in cash or in kind) during the period
 
(23.7
)
 
(24.4
)
Currency translation
 
(0.5
)
 
(1.7
)
Balance at end of period
 
$
28.6

 
$
32.4

Restructuring and Asset Impairments (Tables)
Rollforward of the Company's Restructuring Activities
The following is a roll-forward of the Company's restructuring activities for the twelve months ended December 31, 2016 (in millions):
 
Restructuring Reserve
Balance as of
December 31, 2015
 
Restructuring
Expenses
 
Use of Reserve
 
Reserve Reclassifications
 
Restructuring Reserve
Balance as of
December 31, 2016
Total
$
6.5

 
$
23.4

 
$
20.8

 
$
0.9

 
$
8.2

Employee Benefit Plans (Tables)
The components of period benefit costs for the years ended December 31, 2016, 2015 and 2014 are as follows:
 
 
US Pension Plans
 
Non-US Pension Plans
 
Postretirement Health
and Other
(in millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost - benefits earned during the year
 
$

 
$

 
$

 
$
1.7

 
$
2.6

 
$
2.4

 
$
0.3

 
$
0.4

 
$
0.4

Interest cost of projected benefit obligation
 
6.8

 
9.4

 
10.3

 
2.5

 
8.9

 
11.3

 
1.7

 
2.0

 
2.1

Expected return on assets
 
(5.7
)
 
(9.0
)
 
(9.5
)
 
(1.8
)
 
(7.4
)
 
(9.4
)
 

 

 

Amortization of prior service cost
 

 

 

 
0.1

 
0.1

 
0.1

 

 

 
(0.3
)
Amortization of actuarial net loss (gain)
 
3.6

 
5.1

 
2.9

 
1.0

 
2.3

 
1.5

 

 
0.1

 
(0.1
)
Curtailment gain recognized
 

 

 

 

 

 

 

 

 

Net periodic benefit cost
 
$
4.7

 
$
5.5

 
$
3.7

 
$
3.5

 
$
6.5

 
$
5.9

 
$
2.0

 
$
2.5

 
$
2.1

Weighted average assumptions:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.5
%
 
4.1
%
 
4.9
%
 
2.9
%
 
3.3
%
 
4.3
%
 
4.2
%
 
3.7
%
 
4.5
%
Expected return on plan assets
 
5.5
%
 
5.8
%
 
6.0
%
 
4.0
%
 
3.6
%
 
4.5
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
N/A

 
2.4
%
 
3.9
%
 
4.3
%
 
N/A

 
1.5
%
 
3.0
%
The following is a reconciliation of the changes in benefit obligation, the changes in plan assets, and the funded status as of December 31, 2016 and 2015:
 
 
US Pension Plans
 
Non-US Pension Plans
 
Postretirement
Medical
and Other
(in millions)
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Change in Benefit Obligation
 
 

 
 

 
 

 
 

 
 

 
 

Benefit obligation, beginning of year
 
$
218.5

 
$
235.9

 
$
252.5

 
$
279.5

 
$
51.8

 
$
57.0

Distribution of MFS
 
(62.4
)
 

 
(170.4
)
 

 
(10.1
)
 

Service cost
 

 

 
1.7

 
2.6

 
0.3

 
0.4

Interest cost
 
6.8

 
9.4

 
2.5

 
8.9

 
1.7

 
2.0

Participant contributions
 

 

 

 
0.1

 
1.9

 
2.4

Medicare subsidies received
 

 

 

 

 
0.2

 
0.2

Plan settlements
 

 

 

 

 

 

Net transfer out
 

 

 

 
(0.3
)
 

 

Actuarial (gain) loss
 
0.9

 
(15.2
)
 
11.0

 
(9.7
)
 
1.8

 
(2.0
)
Currency translation adjustment
 

 

 
(9.9
)
 
(15.4
)
 

 
(0.2
)
Benefits paid
 
(8.2
)
 
(11.6
)
 
(4.6
)
 
(13.2
)
 
(6.0
)
 
(8.0
)
Benefit obligation, end of year
 
$
155.6

 
$
218.5

 
$
82.8

 
$
252.5

 
$
41.6

 
$
51.8

Change in Plan Assets
 
 

 
 

 
 

 
 

 
 

 
 

Fair value of plan assets, beginning of year
 
$
143.9

 
$
160.0

 
$
196.9

 
$
214.0

 
$

 
$

Distribution of MFS
 
(34.1
)
 

 
(147.8
)
 

 

 

Actual return on plan assets
 
6.4

 
(5.8
)
 
2.7

 
1.5

 

 

Employer contributions
 
0.6

 
1.3

 
2.2

 
5.1

 
3.9

 
5.4

Participant contributions
 

 

 

 
0.1

 
1.9

 
2.4

Medicare subsidies received
 

 

 

 

 
0.2

 
0.2

Currency translation adjustment
 

 

 
(7.6
)
 
(10.3
)
 

 

Net transfer out
 

 

 

 
(0.3
)
 

 

Benefits paid
 
(8.2
)
 
(11.6
)
 
(4.6
)
 
(13.2
)
 
(6.0
)
 
(8.0
)
Fair value of plan assets, end of year
 
108.6

 
143.9

 
41.8

 
196.9

 

 

Funded status
 
$
(47.0
)
 
$
(74.6
)
 
$
(41.0
)
 
$
(55.6
)
 
$
(41.6
)
 
$
(51.8
)
Amounts recognized in the Consolidated Balance sheet at December 31
 
 

 
 

 
 

 
 

 
 

 
 

Pension asset
 
$

 
$

 
$

 
$

 
$

 
$

Pension obligation
 
(47.0
)
 
(74.6
)
 
(41.0
)
 
(55.6
)
 

 

Postretirement medical and other benefit obligations
 

 

 

 

 
(41.6
)
 
(51.8
)
Net amount recognized
 
$
(47.0
)
 
$
(74.6
)
 
$
(41.0
)
 
$
(55.6
)
 
$
(41.6
)
 
$
(51.8
)
Weighted-Average Assumptions
 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.2
%
 
4.5
%
 
2.1
%
 
3.5
%
 
3.8
%
 
4.1
%
Expected return on plan assets
 
5.5
%
 
5.8
%
 
4.0
%
 
3.6
%
 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
2.4
%
 
3.9
%
 
N/A

 
1.5
%
Amounts recognized in accumulated other comprehensive income as of December 31, 2016 and 2015, consist of the following: 
 
 
Pensions
 
Postretirement
Medical and Other
(in millions)
 
2016
 
2015
 
2016
 
2015
Net actuarial gain (loss)
 
$
(65.1
)
 
$
(113.5
)
 
$
(5.1
)
 
$
(3.8
)
Prior service credit
 
(0.6
)
 
(0.7
)
 

 

Total amount recognized
 
$
(65.7
)
 
$
(114.2
)
 
$
(5.1
)
 
$
(3.8
)
The following table summarizes the sensitivity of our December 31, 2016 retirement obligations and 2016 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions):
Change in assumption:
 
Estimated increase
(decrease) in 2017 pension
cost
 
Estimated increase
(decrease) in Projected
Benefit Obligation for the
year ended December 31,
2016
 
Estimated increase
(decrease) in 2017 Other
Postretirement Benefit
costs
 
Estimated increase
(decrease) in Other
Postretirement Benefit
Obligation for the year
ended December 31, 2016
0.50% increase in discount rate
 
$
(0.8
)
 
$
(13.6
)
 
$

 
$
(1.5
)
0.50% decrease in discount rate
 
0.9

 
14.9

 
0.1

 
1.6

0.50% increase in long-term return on assets
 
(0.7
)
 
N/A

 
N/A

 
N/A

0.50% decrease in long-term return on assets
 
0.7

 
N/A

 
N/A

 
N/A

1% increase in medical trend rates
 
N/A

 
N/A

 
0.7

 
3.7

1% decrease in medical trend rates
 
N/A

 
N/A

 
(0.3
)
 
(3.3
)
The actual allocations for the pension assets at December 31, 2016, and target allocations by asset class, are as follows:
 
Target Allocations
 
Weighted Average Asset Allocations
 
U.S. Plans
 
International Plans
 
U.S. Plans
 
International Plans
Equity Securities
25
%
 
0 - 25%
 
25.0
%
 
33.7
%
Debt Securities
75
%
 
0 - 100%
 
74.4
%
 
31.1
%
Other
%
 
0 - 100%
 
0.6
%
 
35.2
%
The following table presents our plan assets using the fair value hierarchy as of December 31, 2016 and 2015.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.
 
 
December 31, 2016
Assets (in millions)
 
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable Inputs
(Level 3)
 
Total
Cash
 
$
0.9

 
$

 
$

 
$
0.9

Insurance group annuity contracts
 

 

 
14.5

 
14.5

Common/collective trust funds — Government debt
 

 

 

 

Common/collective trust funds — Corporate and other non-government debt
 

 
38.4

 

 
38.4

Common/collective trust funds — Government, corporate and other non-government debt
 

 
55.3

 

 
55.3

Common/collective trust funds — Corporate equity
 

 
41.3

 

 
41.3

Common/collective trust funds — Customized strategy
 

 

 

 

Total
 
$
0.9

 
$
135.0

 
$
14.5

 
$
150.4

 
 
December 31, 2015
Assets (in millions)
 
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable Inputs
(Level 3)
 
Total
Cash
 
$
2.0

 
$

 
$

 
$
2.0

Insurance group annuity contracts
 

 

 
106.5

 
106.5

Common/collective trust funds — Government debt
 

 

 

 

Common/collective trust funds — Corporate and other non-government debt
 

 
60.6

 

 
60.6

Common/collective trust funds — Government, corporate and other non-government debt
 

 
98.7

 

 
98.7

Common/collective trust funds — Corporate equity
 

 
67.1

 

 
67.1

Common/collective trust funds — Customized strategy
 

 
5.9

 

 
5.9

Total
 
$
2.0

 
$
232.3

 
$
106.5

 
$
340.8

A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows:
 
 
Insurance Contracts
Year Ended December 31,
(in millions)
 
2016
 
2015
Beginning Balance
 
$
106.5

 
$
117.7

Distribution of MFS
 
(89.9
)
 

Actual return on assets
 
2.0

 
1.0

Benefit payments
 
(1.4
)
 
(6.7
)
Foreign currency impact
 
(2.7
)
 
(5.5
)
Ending Balance
 
$
14.5

 
$
106.5

Projected benefit payments from the plans as of December 31, 2016 are estimated as follows:
(in millions)
 
U.S Pension Plans
 
Non-U.S. Pension
Plans
 
Postretirement
Health and Other
2017
 
$
9.4

 
$
2.8

 
$
3.6

2018
 
9.7

 
2.7

 
3.8

2019
 
9.9

 
3.1

 
3.8

2020
 
10.1

 
3.6

 
3.8

2021
 
10.1

 
3.6

 
3.8

2022 — 2026
 
50.1

 
20.0

 
15.6

The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2016 and 2015 is as follows:
 
 
U.S Pension Plans
 
Non U.S. Pension Plans
(in millions)
 
2016
 
2015
 
2016
 
2015
Projected benefit obligation
 
$
155.6

 
$
218.5

 
$
79.1

 
$
252.5

Accumulated benefit obligation
 
155.6

 
218.5

 
76.2

 
244.9

Fair value of plan assets
 
108.6

 
143.9

 
38.4

 
196.9

The weighted-average asset allocations of the U.S. pension plans at December 31, 2016 and 2015, by asset category are as follows:
 
 
2016
 
2015
Equity
 
25.0
%
 
24.5
%
Fixed income
 
74.4
%
 
74.8
%
Other
 
0.6
%
 
0.7
%
 
 
100.0
%
 
100.0
%
The weighted-average asset allocations of the Non-U.S. pension plans at December 31, 2016 and 2015, by asset category are as follows:
 
 
2016
 
2015
Equity
 
33.7
%
 
16.2
%
Fixed income
 
31.1
%
 
29.2
%
Other
 
35.2
%
 
54.6
%
 
 
100.0
%
 
100.0
%
Leases (Tables)
Future Minimum Rental Obligations Under Non-Cancelable Operating Leases
Future minimum rental obligations under non-cancelable operating leases as of December 31, 2016 are payable as follows:
(in millions)
 
2017
$
19.9

2018
14.4

2019
12.7

2020
11.7

2021
11.2

Thereafter
27.5

Total
$
97.4

Quarterly Financial Data (Unaudited) (Tables)
Schedule of Quarterly Financial Data
The following tables present select quarterly financial data for 2016 and 2015:
As adjusted for impact of change to FIFO
 
2016
 
2015
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
 
First
 
Second
 
Third
 
Fourth
Statements of operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
427.4

 
$
457.7

 
$
349.8

 
$
378.2

 
$
406.7

 
$
477.7

 
$
438.2

 
$
543.1

Cost of sales
 
347.7

 
370.4

 
309.0

 
332.7

 
329.3

 
379.9

 
369.4

 
454.9

Gross profit
 
79.7

 
87.3

 
40.8

 
45.5

 
77.4

 
97.8

 
68.8

 
88.2

Operating income (loss)
 
0.8

 
3.9

 
(134.2
)
 
(23.8
)
 
(6.3
)
 
17.1

 
(9.3
)
 
(13.9
)
(Loss) income from continuing operations before taxes
 
(85.0
)
 
(4.3
)
 
(144.2
)
 
(34.6
)
 
(30.9
)
 
(5.1
)
 
(36.8
)
 
(38.2
)
Provision (benefit) for taxes on income
 
107.7

 
0.7

 
(5.3
)
 
(2.6
)
 
(8.7
)
 
(0.7
)
 
(6.4
)
 
(25.3
)
Loss from continuing operations
 
(192.7
)
 
(5.0
)
 
(138.9
)
 
(32.0
)
 
(22.2
)
 
(4.4
)
 
(30.4
)
 
(12.9
)
(Loss) income from discontinued operations, net of income taxes
 
(3.2
)
 
(0.8
)
 
(1.8
)
 
(1.4
)
 
15.0

 
29.6

 
34.4

 
56.4

Net (loss) income
 
(195.9
)
 
(5.8
)
 
(140.7
)
 
(33.4
)
 
(7.2
)
 
25.2

 
4.0

 
43.5

Basic (loss) income per share:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loss from continuing operations
 
$
(1.41
)
 
$
(0.04
)
 
$
(1.00
)
 
$
(0.23
)
 
$
(0.16
)
 
$
(0.03
)
 
$
(0.22
)
 
$
(0.09
)
(Loss) income from discontinued operations
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.11

 
0.22

 
0.25

 
0.41

(Loss) income per share
 
$
(1.43
)
 
$
(0.04
)
 
$
(1.02
)
 
$
(0.24
)
 
$
(0.05
)
 
$
0.19

 
$
0.03

 
$
0.32

Diluted (loss) income per share:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loss from continuing operations
 
$
(1.41
)
 
$
(0.04
)
 
$
(1.00
)
 
$
(0.23
)
 
$
(0.16
)
 
$
(0.03
)
 
$
(0.22
)
 
$
(0.09
)
(Loss) income from discontinued operations
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.11

 
0.22

 
0.25

 
0.41

(Loss) income per share
 
$
(1.43
)
 
$
(0.04
)
 
$
(1.02
)
 
$
(0.24
)
 
$
(0.05
)
 
$
0.19

 
$
0.03

 
$
0.32

Dividends per common share
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
0.08

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
 
$
(195.9
)
 
$
(5.8
)
 
$
(140.7
)
 
$
(33.4
)
 
$
(7.2
)
 
$
25.2

 
$
4.0

 
$
43.5

Deferred income taxes
 
110.3

 
1.1

 
2.6

 
(12.6
)
 
33.9

 
0.7

 
0.7

 
(39.7
)
Change in inventories, net
 
(33.7
)
 
(6.2
)
 
7.5

 
85.1

 
(54.3
)
 
(46.2
)
 
(6.7
)
 
100.0

Historical
 
2016
 
2015
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
 
First
 
Second
 
Third
 
Fourth
Statements of operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
427.4

 
$
457.7

 
$
349.8

 
$
378.2

 
$
406.7

 
$
477.7

 
$
438.2

 
$
543.1

Cost of sales
 
345.5

 
369.5

 
308.3

 
332.7

 
331.3

 
382.8

 
368.3

 
454.6

Gross profit
 
81.9

 
88.2

 
41.5

 
45.5

 
75.4

 
94.9

 
69.9

 
88.5

Operating income (loss)
 
3.0

 
4.8

 
(133.5
)
 
(23.8
)
 
(8.3
)
 
14.2

 
(8.2
)
 
(13.6
)
(Loss) income from continuing operations before taxes
 
(82.8
)
 
(3.4
)
 
(143.5
)
 
(34.6
)
 
(32.9
)
 
(8.0
)
 
(35.7
)
 
(37.9
)
Provision (benefit) for taxes on income
 
121.5

 
0.7

 
(5.3
)
 
(2.6
)
 
(9.5
)
 
(1.7
)
 
(6.1
)
 
(25.3
)
Loss from continuing operations
 
(204.3
)
 
(4.1
)
 
(138.2
)
 
(32.0
)
 
(23.4
)
 
(6.3
)
 
(29.6
)
 
(12.6
)
(Loss) income from discontinued operations, net of income taxes
 
(3.2
)
 
(0.8
)
 
(1.8
)
 
(1.4
)
 
15.0

 
29.6

 
34.4

 
56.4

Net (loss) income
 
(207.5
)
 
(4.9
)
 
(140.0
)
 
(33.4
)
 
(8.4
)
 
23.3

 
4.8

 
43.8

Basic (loss) income per share:
 
-195.9

 
-5.8

 
-140.7

 
-21.4

 
-7.2

 
25.2

 
4

 
43.6

Loss from continuing operations
 
$
(1.50
)
 
$
(0.03
)
 
$
(1.00
)
 
$
(0.23
)
 
$
(0.17
)
 
$
(0.05
)
 
$
(0.22
)
 
$
(0.09
)
(Loss) income from discontinued operations
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.11

 
0.22

 
0.25

 
0.41

(Loss) income per share
 
$
(1.52
)
 
$
(0.04
)
 
$
(1.01
)
 
$
(0.24
)
 
$
(0.06
)
 
$
0.17

 
$
0.04

 
$
0.32

Diluted (loss) income per share:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

(Loss) income from continuing operations
 
$
(1.50
)
 
$
(0.03
)
 
$
(1.00
)
 
$
(0.23
)
 
$
(0.17
)
 
$
(0.05
)
 
$
(0.22
)
 
$
(0.09
)
(Loss) income from discontinued operations
 
(0.02
)
 
(0.01
)
 
(0.01
)
 
(0.01
)
 
0.11

 
0.22

 
0.25

 
0.41

(Loss) income per share
 
$
(1.52
)
 
$
(0.04
)
 
$
(1.01
)
 
$
(0.24
)
 
$
(0.06
)
 
$
0.17

 
$
0.04

 
$
0.32

Dividends per common share
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
0.08

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
 
$
(207.5
)
 
$
(4.9
)
 
$
(140.0
)
 
$
(33.4
)
 
$
(8.4
)
 
$
23.3

 
$
4.8

 
$
43.8

Deferred income taxes
 
124.1

 
1.1

 
2.6

 
(12.6
)
 
33.1

 
(0.3
)
 
1.0

 
(39.7
)
Change in inventories, net
 
(35.9
)
 
(7.1
)
 
6.8

 
85.1

 
(52.3
)
 
(43.3
)
 
(7.8
)
 
99.7

Company and Basis of Presentation - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
crane
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
crane
Dec. 31, 2015
Dec. 31, 2014
Mar. 31, 2014
Manitowoc Dong Yue
Mar. 31, 2016
Restatement Adjustment
Understatement of Prior Period Data
Dec. 31, 2015
Restatement Adjustment
Valuation of Manitowoc Dong Yue Receivable
Dec. 31, 2014
Restatement Adjustment
Valuation of Manitowoc Dong Yue Receivable
Mar. 31, 2016
Restatement Adjustment
Manitowoc Food Service
Understatement of Prior Period Data
Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 378.2 
$ 349.8 
$ 457.7 
$ 427.4 
$ 543.1 
$ 438.2 
$ 477.7 
$ 406.7 
$ 1,600.0 
$ 1,865.7 
$ 2,305.2 
 
 
 
 
 
Number of cranes serviced
140,000 
 
 
 
 
 
 
 
140,000 
 
 
 
 
 
 
 
Shares received per parent share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest, ownership percentage
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
Understated deferred tax assets
 
 
 
 
70.8 
 
 
 
 
70.8 
 
 
6.2 
 
 
2.9 
Restricted cash
 
 
 
 
 
 
 
 
 
 
 
 
 
14.0 
 
 
Notes receivable, current
62.4 
 
 
 
65.1 
 
 
 
62.4 
65.1 
 
 
 
5.4 
 
 
Notes receivable, long term
21.1 
 
 
 
56.7 
 
 
 
21.1 
56.7 
 
 
 
8.6 
 
 
Increase (decrease) in other investing cash flows activities
 
 
 
 
 
 
 
 
1.6 
(2.6)
(5.7)
 
 
(2.8)
(17.3)
 
Increase (decrease) in notes receivable within cash flows from operating activities
 
 
 
 
 
 
 
 
$ (32.2)
$ (9.9)
$ 21.8 
 
 
$ 2.8 
$ 17.3 
 
Summary of Significant Accounting Policies - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
estimate
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment
 
 
 
Property, plant and equipment, net of accumulated depreciation
$ 308.8 
$ 410.7 
 
Number of estimates upon which the product liability reserves are based
 
 
Research and development costs
44.5 
57.6 
56.4 
Assets Leased to Others
 
 
 
Property, Plant and Equipment
 
 
 
Property, plant and equipment, net of accumulated depreciation
$ 57.9 
$ 69.4 
 
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Other Intangible Assets (Details)
12 Months Ended
Dec. 31, 2016
Customer relationships
 
Estimated useful lives of other intangible assets
 
Finite-lived intangible asset, useful life
10 years 
Minimum |
Patents
 
Estimated useful lives of other intangible assets
 
Finite-lived intangible asset, useful life
3 years 
Minimum |
Engineering drawings
 
Estimated useful lives of other intangible assets
 
Finite-lived intangible asset, useful life
3 years 
Maximum |
Patents
 
Estimated useful lives of other intangible assets
 
Finite-lived intangible asset, useful life
20 years 
Maximum |
Engineering drawings
 
Estimated useful lives of other intangible assets
 
Finite-lived intangible asset, useful life
15 years 
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property, Plant and Equipment (Details)
12 Months Ended
Dec. 31, 2016
Minimum |
Building and improvements
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
2 years 
Minimum |
Machinery, equipment and tooling
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
2 years 
Minimum |
Furniture and fixtures
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
3 years 
Minimum |
Computer hardware and software
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
2 years 
Minimum |
Rental Cranes
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
5 years 
Maximum |
Building and improvements
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
40 years 
Maximum |
Machinery, equipment and tooling
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
20 years 
Maximum |
Furniture and fixtures
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
20 years 
Maximum |
Computer hardware and software
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
10 years 
Maximum |
Rental Cranes
 
Property, Plant and Equipment
 
Property, plant and equipment, useful lives
15 years 
Discontinued Operations - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Mar. 31, 2014
Manitowoc Dong Yue
Dec. 31, 2016
Manitowoc Dong Yue
Dec. 31, 2016
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff
Manitowoc Food Service
Dec. 31, 2015
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff
Manitowoc Food Service
Dec. 31, 2014
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff
Manitowoc Food Service
Results of discontinued operations
 
 
 
 
 
 
 
 
Dividend from spun-off subsidiary
$ 1,361.7 
$ 0 
$ 0 
 
 
 
 
 
Separation expense
 
 
 
 
 
27.7 
39.4 
Noncontrolling interest, ownership percentage
 
 
 
50.00% 
 
 
 
 
Debt issued, joint venture
 
 
 
7.2 
 
 
 
 
Third party debt outstanding
32.8 
42.9 
 
17.3 
 
 
 
 
Debt instrument, term
 
 
 
4 years 
 
 
 
 
Debt outstanding
$ 291.7 
 
 
 
$ 14.2 
 
 
 
Discontinued Operations - Summary of Selected Financial Data of Businesses Which are Classified as Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS
 
 
 
 
Provision for taxes on income
$ 0.6 
$ 35.9 
$ 26.5 
 
Assets
 
 
 
 
Cash and cash equivalents
31.9 
16.5 
9.6 
Business Disposed Prior to 2014
 
 
 
 
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS
 
 
 
 
(Loss) income from discontinued operations, net of income taxes (1)
(1.0)
(1.0)
 
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff |
Manitowoc Food Service
 
 
 
 
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS
 
 
 
 
Net sales
219.6 
1,570.1 
1,581.3 
 
Cost of sales
141.5 
1,065.6 
1,070.7 
 
Engineering, selling and administrative expenses
48.3 
271.3 
284.2 
 
Amortization of intangible assets
5.2 
31.4 
31.8 
 
Asset impairment expense
9.0 
1.1 
 
Restructuring expense
0.3 
4.6 
2.5 
 
Separation expense
27.7 
39.4 
 
Other
0.9 
0.4 
 
Total operating costs and expenses
223.0 
1,422.2 
1,390.7 
 
Operating (loss) income
(3.4)
147.9 
190.6 
 
Other (expense) income
(2.2)
23.4 
(1.7)
 
(Loss) income from discontinued operations before income taxes
(5.6)
171.3 
188.9 
 
Provision for taxes on income
0.6 
35.9 
26.5 
 
(Loss) income from discontinued operations, net of income taxes (1)
(6.2)
135.4 
162.4 
 
Assets
 
 
 
 
Cash and cash equivalents
 
31.9 
 
 
Restricted cash
 
0.6 
 
 
Accounts receivable - net
 
63.8 
 
 
Inventories - net
 
145.9 
 
 
Other current assets
 
12.0 
 
 
Property, plant and equipment - net
 
116.3 
 
 
Goodwill
 
845.8 
 
 
Other intangible assets - net
 
519.5 
 
 
Other non-current assets
 
16.2 
 
 
Long-term assets held for sale
 
3.7 
 
 
Total major classes of assets of discontinued operations
 
1,755.7 
 
 
Liabilities
 
 
 
 
Accounts payable and accrued expenses
 
271.6 
 
 
Current portion of long-term debt
 
0.4 
 
 
Other current liabilities
 
40.0 
 
 
Long-term debt
 
2.3 
 
 
Deferred income taxes
 
167.9 
 
 
Pension obligation
 
29.3 
 
 
Postretirement health and other benefit obligations
 
3.0 
 
 
Other non-current liabilities
 
17.3 
 
 
Total major classes of liabilities of discontinued operations
 
$ 531.8 
 
 
Fair Value of Financial Instruments - Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy (Details) (Estimate of Fair Value Measurement, Fair value measurement on recurring basis, USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
$ 0.4 
$ 0.3 
Total current liabilities at fair value
1.0 
3.5 
Total non-current liabilities at fair value
 
0.7 
Foreign currency exchange contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
0.2 
0.3 
Total current liabilities at fair value
1.0 
1.1 
Total non-current liabilities at fair value
 
0.1 
Commodity contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
0.2 
 
Total current liabilities at fair value
 
0.7 
Interest rate swap contracts: Float-to-fixed
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current liabilities at fair value
 
1.7 
Total non-current liabilities at fair value
 
0.6 
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
Total current liabilities at fair value
Total non-current liabilities at fair value
 
Level 1 |
Foreign currency exchange contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
Total current liabilities at fair value
Total non-current liabilities at fair value
 
Level 1 |
Commodity contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
 
Total current liabilities at fair value
 
Level 1 |
Interest rate swap contracts: Float-to-fixed
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current liabilities at fair value
 
Total non-current liabilities at fair value
 
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
0.4 
0.3 
Total current liabilities at fair value
1.0 
3.5 
Total non-current liabilities at fair value
 
0.7 
Level 2 |
Foreign currency exchange contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
0.2 
0.3 
Total current liabilities at fair value
1.0 
1.1 
Total non-current liabilities at fair value
 
0.1 
Level 2 |
Commodity contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
0.2 
 
Total current liabilities at fair value
 
0.7 
Level 2 |
Interest rate swap contracts: Float-to-fixed
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current liabilities at fair value
 
1.7 
Total non-current liabilities at fair value
 
0.6 
Level 3
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
Total current liabilities at fair value
Total non-current liabilities at fair value
 
Level 3 |
Foreign currency exchange contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
Total current liabilities at fair value
Total non-current liabilities at fair value
 
Level 3 |
Commodity contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current assets at fair value
 
Total current liabilities at fair value
 
Level 3 |
Interest rate swap contracts: Float-to-fixed
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total current liabilities at fair value
 
Total non-current liabilities at fair value
 
$ 0 
Fair Value of Financial Instruments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Senior Notes
Senior Notes Due 2021
Dec. 31, 2015
Senior Notes
Senior notes due 2020
Dec. 31, 2015
Senior Notes
Senior notes due 2022
Dec. 31, 2015
Line of Credit
Term loan A
Dec. 31, 2015
Line of Credit
Term loan B
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Debt instruments at fair value
$ 282.2 
$ 623.1 
$ 310.6 
$ 307.7 
$ 116.7 
Derivative Financial Instruments - Narrative (Details) (USD $)
12 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended
Dec. 31, 2016
Sep. 30, 2012
Interest Rate Swap
Apr. 30, 2015
Senior Notes, Due 2020 and Due 2022
Interest Rate Swap
Mar. 31, 2016
Senior Notes, Due 2020
Apr. 30, 2015
Senior Notes, Due 2020
Interest Rate Swap
Dec. 31, 2014
Senior Notes, Due 2020
Interest Rate Swap
Mar. 31, 2016
Senior Notes, Due 2022
Sep. 30, 2015
Senior Notes, Due 2022
Interest Rate Swap
Apr. 30, 2015
Senior Notes, Due 2022
Interest Rate Swap
Dec. 31, 2014
Senior Notes, Due 2022
Interest Rate Swap
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
Estimated amount of unrealized gains, net of tax, related to interest rate, commodity price and currency rate hedging that will be reclassified from other comprehensive income into earnings
$ (600,000)
 
 
 
 
 
 
 
 
 
Hedge period, low end of the range (in months)
12 months 
 
 
 
 
 
 
 
 
 
Hedge period, high end of the range (in months)
24 months 
 
 
 
 
 
 
 
 
 
Cash received from monetized derivative asset
 
14,800,000 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
75,000,000 
 
 
 
125,000,000 
Derivative, liability, notional amount
 
 
 
11,800,000 
75,000,000 
 
700,000 
80,000,000 
45,000,000 
 
Gain (loss) on monetization
 
 
$ 700,000 
 
 
 
 
$ 500,000 
 
 
Derivative Financial Instruments - Schedule of Outstanding Commodity and Currency Forward Contracts (Details)
12 Months Ended
Dec. 31, 2016
Commodity contracts
Designated as Hedging Instrument
MMBTU
T
Dec. 31, 2015
Commodity contracts
Designated as Hedging Instrument
MMBTU
T
Dec. 31, 2016
Foreign currency exchange contracts
Designated as Hedging Instrument
Japan, Yen
JPY (¥)
Dec. 31, 2015
Foreign currency exchange contracts
Designated as Hedging Instrument
Japan, Yen
JPY (¥)
Dec. 31, 2016
Foreign currency exchange contracts
Designated as Hedging Instrument
Singapore, Dollars
SGD ($)
Dec. 31, 2015
Foreign currency exchange contracts
Designated as Hedging Instrument
Singapore, Dollars
SGD ($)
Dec. 31, 2016
Foreign currency exchange contracts
Designated as Hedging Instrument
Australian Dollar
AUD ($)
Dec. 31, 2016
Foreign currency exchange contracts
Designated as Hedging Instrument
European Euro
EUR (€)
Dec. 31, 2016
Foreign currency exchange contracts
Designated as Hedging Instrument
South Korean Won
KRW (?)
Dec. 31, 2015
Foreign currency exchange contracts
Designated as Hedging Instrument
South Korean Won
KRW (?)
Dec. 31, 2016
Foreign currency exchange contracts
Designated as Hedging Instrument
United States Dollar
USD ($)
Dec. 31, 2015
Foreign currency exchange contracts
Not Designated as Hedging Instrument
Japan, Yen
JPY (¥)
Dec. 31, 2015
Foreign currency exchange contracts
Not Designated as Hedging Instrument
Singapore, Dollars
SGD ($)
Dec. 31, 2016
Foreign currency exchange contracts
Not Designated as Hedging Instrument
European Euro
EUR (€)
Dec. 31, 2015
Foreign currency exchange contracts
Not Designated as Hedging Instrument
European Euro
EUR (€)
Dec. 31, 2016
Foreign currency exchange contracts
Not Designated as Hedging Instrument
United States Dollar
USD ($)
Dec. 31, 2015
Foreign currency exchange contracts
Not Designated as Hedging Instrument
United States Dollar
USD ($)
Dec. 31, 2015
Foreign currency exchange contracts
Not Designated as Hedging Instrument
United Kingdom, Pounds
GBP (£)
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity units hedged, energy
26,807 
175,617 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity units hedged, mass
3,190 
4,811 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency units hedged
 
 
¥ 65,502,800 
¥ 245,915,700 
$ 900,000 
$ 1,800,000 
$ 611,143 
€ 9,834,120 
? 218,408,100 
? 1,533,257,930 
$ 2,311,697 
¥ 70,518,463 
$ 500,000 
€ 10,502,111 
€ 20,490,320 
$ 15,318,000 
$ 17,321,106 
£ 4,840,238 
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Derivative [Line Items]
 
 
Asset derivatives
$ 0.4 
$ 0.3 
Not Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Asset derivatives
0.1 
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Asset derivatives
0.3 
0.3 
Designated as Hedging Instrument |
Foreign Exchange Contract
 
 
Derivative [Line Items]
 
 
Total current assets at fair value
 
0.3 
Other current assets |
Not Designated as Hedging Instrument |
Foreign Exchange Contract
 
 
Derivative [Line Items]
 
 
Total current assets at fair value
 
Asset derivatives
0.1 
 
Other current assets |
Designated as Hedging Instrument |
Foreign Exchange Contract
 
 
Derivative [Line Items]
 
 
Asset derivatives
0.1 
 
Other current assets |
Designated as Hedging Instrument |
Commodity contracts
 
 
Derivative [Line Items]
 
 
Asset derivatives
$ 0.2 
 
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Derivative [Line Items]
 
 
Liability derivatives
$ 1.0 
$ 4.2 
Not Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Liability derivatives
0.1 
0.9 
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Liability derivatives
0.9 
3.3 
Accounts payable and accrued expenses |
Foreign Exchange Contract |
Not Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total current liabilities at fair value
 
0.9 
Liability derivatives
0.1 
 
Accounts payable and accrued expenses |
Foreign Exchange Contract |
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total current liabilities at fair value
 
0.2 
Liability derivatives
0.9 
 
Accounts payable and accrued expenses |
Commodity contracts |
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total current liabilities at fair value
 
0.7 
Accounts payable and accrued expenses |
Interest rate swap contracts: Float-to-fixed |
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total current liabilities at fair value
 
1.7 
Other Noncurrent Liabilities |
Fair Value Hedging |
Commodity contracts |
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total current liabilities at fair value
 
0.1 
Other Noncurrent Liabilities |
Fair Value Hedging |
Interest rate swap contracts: Float-to-fixed |
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
 
$ 0.6 
Inventories - Schedule of the Components of Inventories (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 109.3 
$ 155.3 
Work-in-process
88.4 
116.3 
Finished goods
270.9 
251.7 
Total inventories — gross
468.6 
523.3 
Excess and obsolete inventory reserve
(39.6)
(34.1)
Net inventories
$ 429.0 
$ 489.2 
Inventories - Schedule of Retrospective Adjustment for Change in Inventory (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
 
$ 1,533.5 
$ 1,838.0 
Operating (loss) income
(23.8)
(134.2)
3.9 
0.8 
(13.9)
(9.3)
17.1 
(6.3)
(153.3)
(12.4)
107.1 
Loss from continuing operations before taxes
(34.6)
(144.2)
(4.3)
(85.0)
(38.2)
(36.8)
(5.1)
(30.9)
(268.1)
(111.0)
(20.4)
Provision (benefit) for taxes on income
(2.6)
(5.3)
0.7 
107.7 
(25.3)
(6.4)
(0.7)
(8.7)
100.5 
(41.1)
(17.8)
Loss from continuing operations
 
 
 
 
 
 
 
 
(368.6)
(69.9)
(2.6)
Net (loss) income
(33.4)
(140.7)
(5.8)
(195.9)
43.5 
4.0 
25.2 
(7.2)
(375.8)
65.5 
147.8 
Net (loss) income attributable to Manitowoc common shareholders
 
 
 
 
 
 
 
 
(375.8)
65.5 
143.9 
Basic (loss) income per share from continuing operations (in dollars per share)
$ (0.23)
$ (1.00)
$ (0.04)
$ (1.41)
$ (0.09)
$ (0.22)
$ (0.03)
$ (0.16)
$ (2.68)
$ (0.51)
$ (0.05)
Diluted (loss) income per share from continuing operations (in dollars per share)
$ (0.23)
$ (1.00)
$ (0.04)
$ (1.41)
$ (0.09)
$ (0.22)
$ (0.03)
$ (0.16)
$ (2.68)
$ (0.51)
$ (0.05)
Inventories — net
429.0 
 
 
 
489.2 
 
 
 
429.0 
489.2 
 
Other non-current assets
45.6 
 
 
 
177.4 
 
 
 
45.6 
177.4 
 
Retained earnings
247.3 
 
 
 
562.3 
 
 
 
247.3 
562.3 
 
Deferred income taxes
12.6 
(2.6)
(1.1)
(110.3)
39.7 
(0.7)
(0.7)
(33.9)
101.4 
(4.4)
11.5 
Change in inventories, net
(85.1)
(7.5)
6.2 
33.7 
(100.0)
6.7 
46.2 
54.3 
52.7 
(7.2)
32.6 
Historical
 
 
 
 
 
 
 
 
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
 
1,537.0 
1,837.6 
Operating (loss) income
(23.8)
(133.5)
4.8 
3.0 
(13.6)
(8.2)
14.2 
(8.3)
 
(15.9)
107.5 
Loss from continuing operations before taxes
(34.6)
(143.5)
(3.4)
(82.8)
(37.9)
(35.7)
(8.0)
(32.9)
 
(114.5)
(20.0)
Provision (benefit) for taxes on income
(2.6)
(5.3)
0.7 
121.5 
(25.3)
(6.1)
(1.7)
(9.5)
 
(42.6)
(18.0)
Loss from continuing operations
 
 
 
 
 
 
 
 
 
(71.9)
(2.0)
Net (loss) income
(33.4)
(140.0)
(4.9)
(207.5)
43.8 
4.8 
23.3 
(8.4)
 
63.5 
148.4 
Net (loss) income attributable to Manitowoc common shareholders
 
 
 
 
 
 
 
 
 
63.5 
144.5 
Basic (loss) income per share from continuing operations (in dollars per share)
$ (0.23)
$ (1.00)
$ (0.03)
$ (1.50)
$ (0.09)
$ (0.22)
$ (0.05)
$ (0.17)
 
$ (0.53)
$ (0.04)
Diluted (loss) income per share from continuing operations (in dollars per share)
$ (0.23)
$ (1.00)
$ (0.03)
$ (1.50)
$ (0.09)
$ (0.22)
$ (0.05)
$ (0.17)
 
$ (0.53)
$ (0.04)
Inventories — net
 
 
 
 
452.6 
 
 
 
 
452.6 
 
Other non-current assets
 
 
 
 
191.2 
 
 
 
 
191.2 
 
Retained earnings
 
 
 
 
539.5 
 
 
 
 
539.5 
 
Deferred income taxes
12.6 
(2.6)
(1.1)
(124.1)
39.7 
(1.0)
0.3 
(33.1)
 
(5.9)
11.3 
Change in inventories, net
(85.1)
(6.8)
7.1 
35.9 
(99.7)
7.8 
43.3 
52.3 
 
(3.7)
32.2 
Impact of Change to FIFO
 
 
 
 
 
 
 
 
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
 
(3.5)
0.4 
Operating (loss) income
 
 
 
 
 
 
 
 
 
3.5 
(0.4)
Loss from continuing operations before taxes
 
 
 
 
 
 
 
 
 
3.5 
(0.4)
Provision (benefit) for taxes on income
 
 
 
2.1 
 
 
 
 
 
1.5 
0.2 
Loss from continuing operations
 
 
 
(3.5)
 
 
 
 
 
2.0 
(0.6)
Net (loss) income
 
 
 
 
 
 
 
 
 
2.0 
(0.6)
Net (loss) income attributable to Manitowoc common shareholders
 
 
 
 
 
 
 
 
 
2.0 
(0.6)
Basic (loss) income per share from continuing operations (in dollars per share)
 
 
 
 
 
 
 
 
 
$ 0.02 
$ (0.01)
Diluted (loss) income per share from continuing operations (in dollars per share)
 
 
 
 
 
 
 
 
 
$ 0.02 
$ (0.01)
Inventories — net
 
 
 
 
36.6 
 
 
 
 
36.6 
 
Other non-current assets
 
 
 
 
(13.8)
 
 
 
 
(13.8)
 
Retained earnings
 
 
 
 
22.8 
 
 
 
 
22.8 
 
Deferred income taxes
 
 
 
 
 
 
 
 
 
1.5 
0.2 
Change in inventories, net
 
 
 
 
 
 
 
 
 
$ (3.5)
$ 0.4 
Notes Receivable (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Receivables [Abstract]
 
 
Notes receivable, current
$ 62.4 
$ 65.1 
Notes receivable, long term
$ 21.1 
$ 56.7 
Property, Plant and Equipment - Components of property, plant and equipment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment
 
 
 
Total cost
$ 789.6 
$ 846.3 
 
Less accumulated depreciation
(480.8)
(435.6)
 
Property, plant and equipment-net
308.8 
410.7 
 
Asset impairment expense
96.9 
15.3 
Land
 
 
 
Property, Plant and Equipment
 
 
 
Total cost
23.6 
23.7 
 
Building and improvements
 
 
 
Property, Plant and Equipment
 
 
 
Total cost
225.0 
218.7 
 
Machinery, equipment and tooling
 
 
 
Property, Plant and Equipment
 
 
 
Total cost
292.6 
274.4 
 
Furniture and fixtures
 
 
 
Property, Plant and Equipment
 
 
 
Total cost
16.7 
16.6 
 
Computer hardware and software
 
 
 
Property, Plant and Equipment
 
 
 
Total cost
126.0 
132.4 
 
Rental cranes
 
 
 
Property, Plant and Equipment
 
 
 
Total cost
89.0 
99.5 
 
Property, plant and equipment-net
57.9 
69.4 
 
Construction in progress
 
 
 
Property, Plant and Equipment
 
 
 
Total cost
$ 16.7 
$ 81.0 
 
Goodwill and Other Intangible Assets - Changes in carrying amount of goodwill by reportable segment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Goodwill
 
 
Gross balance at the beginning of the period
$ 306.5 
$ 325.3 
Foreign currency impact
(6.9)
(18.8)
Gross balance at the end of the year
$ 299.6 
$ 306.5 
Goodwill and Other Intangible Assets - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Intangible asset balances by major asset class
 
 
 
Goodwill
$ 299.6 
$ 306.5 
 
Amortization of intangible assets
3.0 
3.0 
3.3 
Future amortization expense, 2017
 
 
Future amortization expense, 2018
0.4 
 
 
Future amortization expense, 2019
0.4 
 
 
Future amortization expense, 2020
0.4 
 
 
Future amortization expense, 2021
$ 0.4 
 
 
Customer relationships
 
 
 
Intangible asset balances by major asset class
 
 
 
Finite-lived intangible asset, useful life
10 years 
 
 
Goodwill and Other Intangible Assets - Gross carrying amount and accumulated amortization of the company's intangible assets other than goodwill (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Intangible asset balances by major asset class
 
 
Accumulated Amortization Amount
$ (45.3)
$ (43.3)
Gross Carrying Amount
159.4 
162.6 
Net Book Value
114.1 
119.3 
Customer relationships
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
10.3 
10.4 
Accumulated Amortization Amount
(7.8)
(7.1)
Net Book Value
2.5 
3.3 
Patents
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
28.5 
29.1 
Accumulated Amortization Amount
(27.4)
(26.6)
Net Book Value
1.1 
2.5 
Developed Technology Rights
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
10.0 
10.2 
Accumulated Amortization Amount
(9.9)
(9.3)
Net Book Value
0.1 
0.9 
Other intangibles
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
0.2 
0.3 
Accumulated Amortization Amount
(0.2)
(0.3)
Net Book Value
Trademarks and tradenames
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
92.4 
94.2 
Distribution network
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
$ 18.0 
$ 18.4 
Accounts Payable and Accrued Expenses - Schedule of accounts payable and accrued expenses (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Payables and Accruals [Abstract]
 
 
Trade accounts payable
$ 157.7 
$ 268.5 
Employee related expenses
28.1 
35.0 
Accrued vacation
21.8 
25.1 
Miscellaneous accrued expenses
113.6 
107.7 
Total accounts payable and accrued expenses
$ 321.2 
$ 436.3 
Debt - Schedule of Outstanding Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Carrying amount
$ 281.5 
$ 1,397.6 
Debt Issuance Costs, Net
(4.0)
(13.3)
Short-term borrowings
(12.4)
(67.2)
Long-term debt
269.1 
1,330.4 
Term loan A
 
 
Debt Instrument [Line Items]
 
 
Carrying amount
312.8 
Term loan B
 
 
Debt Instrument [Line Items]
 
 
Carrying amount
119.5 
Senior notes due 2020
 
 
Debt Instrument [Line Items]
 
 
Carrying amount
613.1 
Senior notes due 2022
 
 
Debt Instrument [Line Items]
 
 
Carrying amount
299.2 
Senior notes due 2021
 
 
Debt Instrument [Line Items]
 
 
Carrying amount
249.8 
Other
 
 
Debt Instrument [Line Items]
 
 
Carrying amount
$ 35.7 
$ 66.3 
Debt - Narrative (Details) (USD $)
12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 3 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
ABL Revolving Credit Facility
Mar. 3, 2016
ABL Revolving Credit Facility
Dec. 31, 2016
ABL Revolving Credit Facility
LIBOR
Dec. 31, 2016
ABL Revolving Credit Facility
Prime Rate
Mar. 3, 2016
ABL Revolving Credit Facility
Letter of Credit
Dec. 31, 2016
ABL Revolving Credit Facility
Letter of Credit
Mar. 3, 2016
ABL Revolving Credit Facility
Letter of Credit
Dec. 31, 2016
ABL Revolving Credit Facility
Revolving credit facility
Mar. 3, 2016
ABL Revolving Credit Facility German Borrower
Letter of Credit
Jan. 3, 2014
Senior Credit Facility
facility
Dec. 31, 2016
Senior Credit Facility
Jan. 3, 2014
Senior Credit Facility
Jan. 3, 2014
Senior Credit Facility
Revolving credit facility
Jan. 3, 2014
Senior Credit Facility
Revolving credit facility
Jan. 3, 2014
Senior Credit Facility
Term loan A
Jan. 3, 2014
Senior Credit Facility
Term loan A
Jan. 3, 2014
Senior Credit Facility
Term loan B
Jan. 3, 2014
Senior Credit Facility
Term loan B
Dec. 31, 2016
Senior Notes Due 2021
Feb. 18, 2016
Senior Notes Due 2021
Dec. 31, 2015
Senior Notes Due 2021
Mar. 3, 2016
Senior Notes, Due 2022
Mar. 31, 2016
Senior Notes, Due 2022
Mar. 3, 2016
Senior Notes, Due 2022
Sep. 30, 2015
Senior Notes, Due 2022
Interest Rate Swap
Apr. 30, 2015
Senior Notes, Due 2022
Interest Rate Swap
Dec. 31, 2014
Senior Notes, Due 2022
Interest Rate Swap
Dec. 31, 2016
Term loan B
Dec. 31, 2015
Term loan B
Dec. 31, 2016
Term loan A
Dec. 31, 2015
Term loan A
Dec. 31, 2016
Term loan A
Interest Rate Swap
Cash Flow Hedging
Dec. 31, 2015
Term loan A
Interest Rate Swap
Cash Flow Hedging
Mar. 3, 2016
Senior Notes, Due 2020
Mar. 31, 2016
Senior Notes, Due 2020
Mar. 3, 2016
Senior Notes, Due 2020
Apr. 30, 2015
Senior Notes, Due 2020
Interest Rate Swap
Dec. 31, 2014
Senior Notes, Due 2020
Interest Rate Swap
Dec. 31, 2016
Other
Dec. 31, 2015
Other
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period for which the entity will be able to comply with the financial covenants
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility
 
 
 
 
$ 225,000,000 
 
 
 
 
$ 75,000,000 
 
$ 10,000,000 
 
 
$ 1,050,000,000 
 
$ 500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, term
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
5 years 
 
5 years 
 
7 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Highest daily borrowings
 
 
 
30,000,000 
 
 
 
 
 
 
 
 
 
234,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average borrowings
 
 
 
 
 
 
 
 
 
 
8,100,000 
 
 
117,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate (as a percent)
 
 
 
2.51% 
 
 
 
 
 
 
 
 
 
3.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.43% 
 
Spreads for LIBOR and prime borrowings
 
 
 
 
 
1.50% 
0.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess availability
 
 
 
144,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining borrowing capacity
 
 
 
 
 
 
 
 
 
 
160,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings outstanding
 
 
 
 
 
 
 
 
16,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of loan facilities included with the senior credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
350,000,000 
 
200,000,000 
 
260,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, notional amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
125,000,000 
 
 
 
 
 
175,000,000.0 
 
 
 
 
75,000,000 
 
 
Gain (loss) on derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,900,000 
 
 
 
 
 
 
 
 
Write off of deferred financing expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,400,000 
 
 
 
 
 
 
 
 
4,300,000 
 
 
6,900,000 
 
 
 
 
 
Interest rate, stated percentage (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12.75% 
 
 
 
5.875% 
 
 
 
 
 
 
 
 
 
 
 
8.50% 
 
 
 
 
Fixed charge coverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of long term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
330,500,000 
 
 
 
 
 
 
 
 
 
 
 
625,500,000 
 
 
 
 
 
 
Redemption percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
110.167% 
 
 
 
 
 
 
 
 
 
 
 
104.25% 
 
 
 
 
 
 
Loss on debt extinguishment
(76,300,000)
(200,000)
(25,500,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34,600,000 
 
 
 
 
 
 
 
 
 
 
 
31,500,000 
 
 
 
 
 
Debt redemption premium
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31,200,000 
 
 
 
 
 
 
 
 
 
 
 
24,600,000 
 
 
 
 
 
Monetized derivative liability
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
700,000 
 
80,000,000 
45,000,000 
 
 
 
 
 
 
 
 
11,800,000 
 
75,000,000 
 
 
 
Carrying amount
$ 281,500,000 
$ 1,397,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 249,800,000 
 
$ 0 
 
 
 
 
 
 
$ 0 
$ 119,500,000 
$ 0 
$ 312,800,000 
 
 
 
 
 
 
 
$ 35,700,000 
$ 66,300,000 
Debt - Schedule of Aggregate Maturities of Outstanding Debt Obligations in Subsequent Years (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Aggregate scheduled maturities of outstanding debt obligations in subsequent years
 
2017
$ 12.4 
2018
5.8 
2019
5.7 
2020
3.8 
2021
263.3 
Thereafter
0.7 
Total
291.7 
Discount on debt issuance
$ 10.2 
Accounts Receivable Securitization - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Transfers and Servicing [Abstract]
 
 
Capacity of securitization program
$ 75.0 
 
Trade accounts receivable balance sold
19.5 
64.2 
Fair value of deferred purchase price notes
$ 30.6 
$ 54.1 
Period for which the entity will be able to comply with the financial covenants
12 months 
 
Income Taxes - Summary of Earnings from Continuing Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Earnings (loss) from continuing operations before income taxes:
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
 
 
 
 
 
 
$ (293.0)
$ (184.0)
$ (93.3)
Foreign
 
 
 
 
 
 
 
 
24.9 
73.0 
72.9 
Loss from continuing operations before taxes
$ (34.6)
$ (144.2)
$ (4.3)
$ (85.0)
$ (38.2)
$ (36.8)
$ (5.1)
$ (30.9)
$ (268.1)
$ (111.0)
$ (20.4)
Income Taxes - Schedule of Income Tax Expense (Benefit) from Continuing Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Current:
 
 
 
 
 
 
 
 
 
 
 
Federal and state
 
 
 
 
 
 
 
 
$ (13.0)
$ (48.6)
$ (41.0)
Foreign
 
 
 
 
 
 
 
 
12.1 
11.9 
11.7 
Total current
 
 
 
 
 
 
 
 
(0.9)
(36.7)
(29.3)
Deferred:
 
 
 
 
 
 
 
 
 
 
 
Federal and state
 
 
 
 
 
 
 
 
98.7 
(8.3)
16.7 
Foreign
 
 
 
 
 
 
 
 
2.7 
3.9 
(5.2)
Total deferred
 
 
 
 
 
 
 
 
101.4 
(4.4)
11.5 
Provision (benefit) for taxes on income
$ (2.6)
$ (5.3)
$ 0.7 
$ 107.7 
$ (25.3)
$ (6.4)
$ (0.7)
$ (8.7)
$ 100.5 
$ (41.1)
$ (17.8)
Income Taxes - Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Income Tax Rate for Continuing Operations (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reconciliation of the federal statutory income tax rate to the company's effective income tax rate for continuing operations
 
 
 
Federal income tax at statutory rate (as a percent)
35.00% 
35.00% 
35.00% 
State income provision (benefit) (as a percent)
2.30% 
5.70% 
16.50% 
Manufacturing & research incentives (as a percent)
2.00% 
(0.40%)
6.10% 
Taxes on foreign income which differ from the U.S. statutory rate (as a percent)
3.00% 
3.20% 
44.10% 
Adjustments for unrecognized tax benefits (as a percent)
(4.00%)
1.50% 
51.50% 
Adjustments for valuation allowances (as a percent)
(69.80%)
(8.50%)
(25.00%)
Spin-off tax costs (as a percent)
(0.013)
(0.018)
0.000 
Change in assertion over permanently reinvest foreign earnings (as a percent)
0.00% 
0.00% 
(26.40%)
Other items (as a percent)
(4.70%)
2.30% 
(14.50%)
Effective tax rate (as a percent)
(37.50%)
37.00% 
87.30% 
Income Taxes - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
 
 
 
 
Federal income tax at statutory rate (as a percent)
35.00% 
35.00% 
35.00% 
 
Change in valuation allowance, deferred tax asset
$ 187.0 
 
 
 
Undistributed earnings of consolidated non-U.S. subsidiaries
474.2 
 
 
 
Cash and cash equivalents held by foreign subsidiaries
13.6 
 
 
 
Change to gross unrecognized tax benefits including interest and penalties
(0.8)
(1.9)
(12.1)
 
Uncertain tax liabilities interest and penalties
2.8 
(0.5)
 
(2.4)
Uncertain tax liabilities interest and penalties accrued
7.4 
4.6 
 
 
Unrecognized tax benefits and income tax expense possibly reduced from audit resolutions
11.2 
 
 
 
Domestic Tax Authority
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
101.5 
 
 
 
State and Local Jurisdiction
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
667.8 
 
 
 
Foreign Tax Authority
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
Net operating loss carryforwards
341.9 
 
 
 
Net operating loss carryforwards, valuation allowance
$ 332.4 
 
 
 
Income Taxes - Schedules of Deferred Tax Assets (Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Non-current deferred tax assets (liabilities):
 
 
Inventories
$ 14.2 
$ 16.2 
Accounts receivable
(4.6)
(6.9)
Property, plant and equipment
19.0 
(10.6)
Intangible assets
(35.9)
(37.8)
Deferred employee benefits
71.8 
77.2 
Product warranty reserves
6.1 
6.9 
Product liability reserves
7.8 
7.7 
Tax credits
4.9 
0.4 
Loss carryforwards
145.4 
102.1 
Deferred revenue
10.8 
10.2 
Other
(1.7)
(8.1)
Total non-current deferred tax liabilities
237.8 
157.3 
Less valuation allowance
(269.6)
(86.5)
Net deferred tax liabilities, non-current
(31.8)
 
Net deferred tax assets, non-current
 
70.8 
Components of Deferred Tax Assets and Liabilities [Abstract]
 
 
Long-term income tax assets, included in other non-current assets
4.8 
96.4 
Long-term deferred income tax liability
(36.6)
(25.6)
Net deferred income tax liability
(31.8)
 
Net deferred income tax assets
 
$ 70.8 
Income Taxes - Schedule of Open Tax Years for Which the Company could be Subject to Income Tax Examination (Details)
12 Months Ended
Dec. 31, 2016
United States |
Minimum
 
Income Tax Examination [Line Items]
 
Year under examination
2012 
United States |
Maximum
 
Income Tax Examination [Line Items]
 
Year under examination
2016 
China |
Minimum
 
Income Tax Examination [Line Items]
 
Year under examination
2007 
China |
Maximum
 
Income Tax Examination [Line Items]
 
Year under examination
2016 
France |
Minimum
 
Income Tax Examination [Line Items]
 
Year under examination
2013 
France |
Maximum
 
Income Tax Examination [Line Items]
 
Year under examination
2016 
Germany |
Minimum
 
Income Tax Examination [Line Items]
 
Year under examination
2006 
Germany |
Maximum
 
Income Tax Examination [Line Items]
 
Year under examination
2016 
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Balance at beginning of year
$ 19.4 
$ 20.8 
$ 29.5 
Additions based on tax positions related to the current year
1.1 
1.3 
1.5 
Additions for tax positions of prior years
5.0 
0.2 
3.2 
Reductions for tax positions of prior years
(9.3)
(2.7)
Reductions based on settlements with taxing authorities
(5.0)
Reductions for lapse of statute
(0.4)
(2.9)
(5.7)
Balance at end of year
$ 15.8 
$ 19.4 
$ 20.8 
Earnings Per Share - Reconciliation of the Average Shares Outstanding Used to Compute Basic and Diluted Earnings per Share (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Earnings Per Share [Abstract]
 
 
 
Basic weighted average common shares outstanding (in shares)
137,767,109 
136,036,192 
134,934,892 
Effect of dilutive securities - stock awards (in shares)
Diluted weighted average common shares outstanding (in shares)
137,767,109 
136,036,192 
134,934,892 
Earnings Per Share - Narrative (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)
1.4 
1.4 
2.4 
Common shares issuable upon the exercise of stock options
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)
0.9 
2.8 
1.2 
Equity - Narrative (Details) (USD $)
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2007
Right
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Mar. 21, 2007
Equity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Authorized capitalization of common stock (in shares)
 
300,000,000 
 
 
 
300,000,000 
 
 
 
 
300,000,000 
 
Common stock, par value (in dollars per share)
 
$ 0.01 
 
 
 
$ 0.01 
 
 
 
 
$ 0.01 
$ 0.01 
Preferred stock, shares authorized (in shares)
 
3,500,000 
 
 
 
3,500,000 
 
 
 
 
3,500,000 
 
Preferred stock, par value (in dollars per share)
 
$ 0.01 
 
 
 
$ 0.01 
 
 
 
 
$ 0.01 
 
Preferred shares issued (in shares)
 
 
 
 
 
 
 
 
 
 
Number of rights per common stock share distributed as dividends
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock the registered holder of each right is entitled to purchase when exercisable (in shares)
 
 
 
 
 
 
 
 
 
 
Purchase price of each common stock share following the exercise of rights (in dollars per share)
 
$ 110.00 
 
 
 
 
 
 
 
 
$ 110.00 
 
Dividends per common share (in dollars per share)
 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0.08 
$ 0 
$ 0 
$ 0 
$ 0.08 
$ 0 
 
Number of shares authorized to be repurchased (in shares) (up to)
 
2,400,000.0 
 
 
 
 
 
 
 
 
2,400,000.0 
 
Equity - Schedule of Components of Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Foreign currency translation
$ (110.8)
$ (121.4)
 
Derivative instrument fair market value, net of income taxes of $(0.3) and $(2.2)
(0.3)
(3.8)
 
Employee pension and postretirement benefit adjustments, net of income taxes of $(19.0) and $(35.2)
(51.8)
(82.6)
 
Accumulated other comprehensive loss
(162.9)
(207.8)
 
Derivative instrument fair market value, tax
(0.3)
(2.2)
 
Employee pension and postretirement benefit adjustments, tax
(19.0)
(35.2)
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Balance at beginning of period
842.3 
 
 
Net current period other comprehensive income
(23.1)
(77.3)
(123.6)
Distribution of MFS
3.9 
Balance at end of period
590.5 
842.3 
 
Gains and Losses on Cash Flow Hedges
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Balance at beginning of period
(3.8)
(6.3)
 
Other comprehensive loss before reclassifications
(2.9)
14.0 
 
Amounts reclassified from accumulated other comprehensive income
4.3 
(11.5)
 
Net current period other comprehensive income
 
2.5 
 
Net current period other comprehensive loss
1.4 
 
 
Distribution of MFS
2.1 
 
 
Balance at end of period
(0.3)
(3.8)
 
Pension & Postretirement
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Balance at beginning of period
(82.6)
(95.0)
 
Other comprehensive loss before reclassifications
(8.6)
17.9 
 
Amounts reclassified from accumulated other comprehensive income
4.5 
(5.5)
 
Net current period other comprehensive income
 
12.4 
 
Net current period other comprehensive loss
(4.1)
 
 
Distribution of MFS
34.9 
 
 
Balance at end of period
(51.8)
(82.6)
 
Foreign Currency Translation
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Balance at beginning of period
(121.4)
(29.2)
 
Other comprehensive loss before reclassifications
(20.4)
(92.2)
 
Amounts reclassified from accumulated other comprehensive income
 
Net current period other comprehensive income
 
(92.2)
 
Net current period other comprehensive loss
(20.4)
 
 
Distribution of MFS
31.0 
 
 
Balance at end of period
(110.8)
(121.4)
 
Accumulated Other Comprehensive Loss
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Balance at beginning of period
(207.8)
(130.5)
 
Other comprehensive loss before reclassifications
(31.9)
(60.3)
 
Amounts reclassified from accumulated other comprehensive income
8.8 
(17.0)
 
Net current period other comprehensive income
(23.1)
(77.3)
(123.6)
Net current period other comprehensive loss
(23.1)
 
 
Distribution of MFS
68.0 
 
 
Balance at end of period
$ (162.9)
$ (207.8)
$ (130.5)
Equity - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income, Net of Tax (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
$ (332.7)
$ (309.0)
$ (370.4)
$ (347.7)
$ (454.9)
$ (369.4)
$ (379.9)
$ (329.3)
$ (1,359.8)
$ (1,533.5)
$ (1,838.0)
Interest expense
 
 
 
 
 
 
 
 
(39.6)
(95.6)
(92.8)
Total before tax
(34.6)
(144.2)
(4.3)
(85.0)
(38.2)
(36.8)
(5.1)
(30.9)
(268.1)
(111.0)
(20.4)
Tax expense (benefit)
2.6 
5.3 
(0.7)
(107.7)
25.3 
6.4 
0.7 
8.7 
(100.5)
41.1 
17.8 
Net of tax
 
 
 
 
 
 
 
 
(375.8)
65.5 
143.9 
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net of Tax
 
 
 
 
 
 
 
 
(8.8)
(17.0)
(5.7)
Gains and Losses on Cash Flow Hedges
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net of Tax
 
 
 
 
 
 
 
 
(4.3)
11.5 
 
Gains and Losses on Cash Flow Hedges |
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total before tax
 
 
 
 
 
 
 
 
(5.4)
(18.3)
(4.1)
Tax expense (benefit)
 
 
 
 
 
 
 
 
1.1 
6.8 
1.5 
Net of tax
 
 
 
 
 
 
 
 
(4.3)
(11.5)
(2.6)
Actuarial losses |
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total before tax
 
 
 
 
 
 
 
 
(4.6)
(7.5)
(4.3)
Amortization of prior service cost |
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Amortization of pension and postretirement
 
 
 
 
 
 
 
 
(0.1)
(0.1)
0.2 
Pension & Postretirement
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net of Tax
 
 
 
 
 
 
 
 
(4.5)
5.5 
 
Pension & Postretirement |
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total before tax
 
 
 
 
 
 
 
 
(4.7)
(7.6)
(4.1)
Tax benefit
 
 
 
 
 
 
 
 
0.2 
2.1 
1.0 
Net of Tax
 
 
 
 
 
 
 
 
(4.5)
(5.5)
(3.1)
Foreign currency exchange contracts |
Gains and Losses on Cash Flow Hedges |
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
(0.9)
(11.7)
(2.2)
Commodity contracts |
Gains and Losses on Cash Flow Hedges |
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
(0.2)
(4.0)
(0.1)
Interest Rate Swap |
Gains and Losses on Cash Flow Hedges |
Reclassification out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
$ (4.3)
$ (2.6)
$ (1.8)
Stock-Based Compensation - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2016
May 7, 2013
2013 Omnibus Plan
Mar. 18, 2016
Amended Omnibus 2013 Plan
Dec. 31, 2016
Stock Options
Dec. 31, 2015
Stock Options
Dec. 31, 2014
Stock Options
Dec. 31, 2016
Stock Options
Officers and Employees
Dec. 31, 2016
Stock Options
Directors
Dec. 31, 2016
Stock Options
Stock Plan 2003
Officers and Employees
Dec. 31, 2016
Stock Options
Director Stock Plan 2004
Directors
Apr. 30, 2015
Restricted Stock
Dec. 31, 2016
Restricted Stock
Dec. 31, 2015
Restricted Stock
Dec. 31, 2014
Restricted Stock
Dec. 31, 2016
Restricted Stock
Stock Plan 2003
Officers and Employees
Dec. 31, 2016
Restricted Stock Units (RSUs)
Dec. 31, 2015
Restricted Stock Units (RSUs)
Dec. 31, 2014
Restricted Stock Units (RSUs)
Dec. 31, 2016
Performance shares
Dec. 31, 2016
Performance shares
Performance Shares 2016
Dec. 31, 2016
Performance shares
Performance Shares 2016
Minimum
Dec. 31, 2016
Performance shares
Performance Shares 2016
Maximum
Dec. 31, 2016
Performance shares
Performance Shares 2012
Dec. 31, 2016
Performance shares
Performance Shares 2013
Dec. 31, 2016
Separation Expense
Restricted Stock
Dec. 31, 2016
Employee Severance
Restricted Stock
Dec. 31, 2016
Selling, General and Administrative Expenses
Dec. 31, 2015
Selling, General and Administrative Expenses
Dec. 31, 2014
Selling, General and Administrative Expenses
Dec. 31, 2016
(Loss) Income from Discontinued Operations
Dec. 31, 2015
(Loss) Income from Discontinued Operations
Dec. 31, 2014
(Loss) Income from Discontinued Operations
Dec. 31, 2016
Other Expense
Performance shares
Performance Shares 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock authorized under the plan (shares)
 
8,000,000 
22,145,082 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options vesting percentage
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vesting rights, annual increments beginning on the grant date
 
 
 
 
 
 
25% increments beginning on the first anniversary of the grant date 
 
25% increments beginning on the second anniversary of the grant date 
 
 
 
 
 
100% on the third anniversary of the grant date 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vesting period (in years)
 
 
 
 
 
 
4 years 
4 years 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration period (in years)
 
 
 
 
 
 
 
10 years 
10 years 
10 years 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense
 
 
 
$ 1.8 
$ 3.7 
$ 4.9 
 
 
 
 
 
$ 1.8 
$ 0.3 
$ 1.0 
 
$ 4.0 
$ 7.5 
$ 5.9 
 
 
 
 
 
 
$ 2.8 
$ 1.3 
$ 4.9 
$ 9.7 
$ 10.3 
$ 0.3 
$ 4.7 
$ 2.4 
$ 1.0 
Vesting rights percentage for grants made prior to 2011 (as a percent)
 
 
 
 
 
 
25.00% 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration period for grants made prior to 2011 (in years)
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of share options granted during the period (in shares)
 
 
 
1,800,000 
700,000 
300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise Price, low end of range (in dollars per share)
$ 0.90 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise Price, high end of range (in dollars per share)
$ 9.76 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period of U.S. Treasury rates as a basis for assumed risk-free rates (in years)
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense (in dollars)
 
 
 
2.7 
 
 
 
 
 
 
 
0.5 
 
 
 
5.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognition period for unrecognized compensation expense (in years)
 
 
 
2 years 10 months 24 days 
 
 
 
 
 
 
 
1 year 2 months 
 
 
 
2 years 0 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average grant date fair value, options (in dollars per share)
 
 
 
$ 2.05 
$ 10.93 
$ 14.84 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total intrinsic value of stock options exercised
 
 
 
$ 6.3 
$ 5.6 
$ 28.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
 
 
 
 
 
 
400,000 
 
 
 
1,400,000 
600,000 
400,000 
1,400,000 
 
1,600,000 
 
 
 
 
 
 
 
 
 
 
 
Period for meeting performance goals (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
Percentage of shares paid based on total shareholder return relative to peer group of companies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
Percentage of shares paid based on improvement in total leverage ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
Anniversary period from grant date, for grants made prior to 2011 (in years)
 
 
 
 
 
 
2 years 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anniversary period from grant date (in years)
 
 
 
 
 
 
 
 
2 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-Based Compensation - Summary of the Company's Stock Option Activity (Details) (Stock Options, USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Stock Options
 
 
 
Shares
 
 
 
Options outstanding at the beginning of the period (in shares)
5,500,000 
5,600,000 
 
Granted (in shares)
1,800,000 
700,000 
300,000 
Exercised (in shares)
(2,900,000)
(500,000)
 
Canceled (in shares)
(200,000)
(300,000)
 
Forfeited (in shares)
(300,000)
 
 
Options outstanding at the end of the period (in shares)
3,900,000 
5,500,000 
5,600,000 
Options exercisable (in shares)
2,000,000 
 
 
Weighted Average Exercise Price
 
 
 
Options outstanding at the beginning of the period (in dollars per share)
$ 19.04 
$ 18.23 
 
Granted (in dollars per share)
$ 4.30 
$ 21.02 
 
Exercised (in dollars per share)
$ 3.27 
$ 9.63 
 
Options forfeited weighted average cost (in dollars per share)
$ 4.21 
 
 
Options canceled weighted average cost (in dollars per share)
$ 4.32 
$ 23.70 
 
Options outstanding at the end of the period (in dollars per share)
$ 4.44 
$ 19.04 
$ 18.23 
Options exercisable (in dollars per share)
$ 4.55 
 
 
Aggregate Intrinsic Value
 
 
 
Options outstanding (in dollars)
$ 7.5 
 
 
Options exercisable (in dollars)
$ 3.9 
 
 
Stock-Based Compensation - Schedule of the Options Outstanding and Exercisable by Range of Exercise Prices (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range (in dollars per share)
$ 0.90 
Exercise Price, high end of range (in dollars per share)
$ 9.76 
$0.90 - $6.00
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range (in dollars per share)
$ 0.90 
Exercise Price, high end of range (in dollars per share)
$ 6.00 
$6.01 - $7.00
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range (in dollars per share)
$ 6.01 
Exercise Price, high end of range (in dollars per share)
$ 7.00 
$7.01 - $9.00
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range (in dollars per share)
$ 7.01 
Exercise Price, high end of range (in dollars per share)
$ 9.00 
$9.01 - $9.76
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range (in dollars per share)
$ 9.01 
Exercise Price, high end of range (in dollars per share)
$ 9.76 
Stock Options
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
3.9 
Weighted Average Remaining Contractual Life (in years)
3 years 1 month 
Weighted Average Exercise Price (in dollars per share)
$ 4.44 
Exercisable Options (in shares)
2.0 
Weighted Average Exercise Price (in dollars per share)
$ 4.55 
Stock Options |
$0.90 - $6.00
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
3.2 
Weighted Average Remaining Contractual Life (in years)
7 years 0 months 
Weighted Average Exercise Price (in dollars per share)
$ 3.89 
Exercisable Options (in shares)
1.3 
Weighted Average Exercise Price (in dollars per share)
$ 3.25 
Stock Options |
$6.01 - $7.00
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
0.4 
Weighted Average Remaining Contractual Life (in years)
0 years 3 months 
Weighted Average Exercise Price (in dollars per share)
$ 6.02 
Exercisable Options (in shares)
0.4 
Weighted Average Exercise Price (in dollars per share)
$ 6.02 
Stock Options |
$7.01 - $9.00
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
0.3 
Weighted Average Remaining Contractual Life (in years)
1 year 0 months 
Weighted Average Exercise Price (in dollars per share)
$ 7.90 
Exercisable Options (in shares)
0.3 
Weighted Average Exercise Price (in dollars per share)
$ 7.90 
Stock Options |
$9.01 - $9.76
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
Weighted Average Remaining Contractual Life (in years)
0 years 11 months 
Weighted Average Exercise Price (in dollars per share)
$ 9.44 
Exercisable Options (in shares)
Weighted Average Exercise Price (in dollars per share)
$ 9.44 
Stock-Based Compensation - Schedule of the Assumptions Used to Estimate the Fair Value of Each Option Grant (Details) (Stock Options)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Stock Options
 
 
 
Assumptions used to estimate the fair value of each option grant
 
 
 
Expected Life (years)
6 years 6 months 
6 years 
6 years 
Risk-free Interest rate (as a percent)
1.60% 
1.80% 
1.90% 
Expected volatility (as a percent)
45.00% 
56.00% 
55.00% 
Expected dividend yield (as a percent)
0.00% 
0.30% 
0.40% 
Stock-Based Compensation - Schedule of Nonvested Share Activity (Details) (USD $)
1 Months Ended 12 Months Ended
Apr. 30, 2015
Dec. 31, 2016
Restricted Stock
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
Unvested beginning balance (in shares)
 
400,000 
Granted (in shares)
400,000 
Vested (in shares)
 
(200,000)
Forfeited (in shares)
 
Unvested ending balance (in shares)
 
200,000 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
 
Weighted average grant date fair value beginning (in dollars per share)
 
$ 21.73 
Granted (in dollars per share)
 
$ 0.00 
Vested (in dollars per share)
 
$ 21.73 
Cancelled (in dollars per share)
 
$ 21.73 
Weighted average grant date fair value ending (in dollars per share)
 
$ 21.73 
Performance shares
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
Unvested beginning balance (in shares)
 
700,000 
Granted (in shares)
 
1,400,000 
Vested (in shares)
 
(200,000)
Forfeited (in shares)
 
(200,000)
Unvested ending balance (in shares)
 
1,700,000 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
 
Weighted average grant date fair value beginning (in dollars per share)
 
$ 25.53 
Granted (in dollars per share)
 
$ 5.36 
Vested (in dollars per share)
 
$ 22.43 
Cancelled (in dollars per share)
 
$ 11.07 
Weighted average grant date fair value ending (in dollars per share)
 
$ 11.02 
Segments - Narrative (Details)
12 Months Ended
Dec. 31, 2016
segment
Segment Reporting [Abstract]
 
Number of reportable segments
Segments - Schedule of Net Sales from Continuing Operations and Long-Lived Asset Information by Geographic Area (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 378.2 
$ 349.8 
$ 457.7 
$ 427.4 
$ 543.1 
$ 438.2 
$ 477.7 
$ 406.7 
$ 1,600.0 
$ 1,865.7 
$ 2,305.2 
Long-Lived Assets
345.9 
 
 
 
497.4 
 
 
 
345.9 
497.4 
 
United States
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
641.3 
784.5 
951.3 
Long-Lived Assets
152.9 
 
 
 
258.6 
 
 
 
152.9 
258.6 
 
Other North America
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
61.9 
87.2 
156.9 
Long-Lived Assets
 
 
 
 
 
 
 
Europe
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
520.7 
418.9 
554.3 
Long-Lived Assets
129.9 
 
 
 
135.3 
 
 
 
129.9 
135.3 
 
Asia
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
159.1 
184.8 
221.2 
Long-Lived Assets
50.5 
 
 
 
86.3 
 
 
 
50.5 
86.3 
 
Middle East
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
119.6 
193.8 
212.7 
Long-Lived Assets
1.4 
 
 
 
1.5 
 
 
 
1.4 
1.5 
 
Central and South America
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
24.9 
63.7 
93.1 
Long-Lived Assets
10.8 
 
 
 
11.8 
 
 
 
10.8 
11.8 
 
Central and South America
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
39.7 
80.0 
54.5 
Long-Lived Assets
 
 
 
 
 
 
 
South Pacific and Caribbean
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
8.2 
5.9 
7.3 
Long-Lived Assets
 
 
 
3.8 
 
 
 
3.8 
 
Australia
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
37.7 
46.9 
53.9 
Long-Lived Assets
$ 0.4 
 
 
 
$ 0.1 
 
 
 
$ 0.4 
$ 0.1 
 
Contingencies and Significant Estimates - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Product Liability [Abstract]
 
 
 
Period over which product liability self-insurance retention levels have fluctuated (in years)
10 years 
 
 
Product Liability Reserve
$ 21.7 
$ 21.9 
 
Warranty claims reserves
28.6 
32.4 
36.1 
Maximum
 
 
 
Product Liability [Abstract]
 
 
 
Self insurance retention
$ 2.0 
 
 
Guarantees - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Guarantees [Abstract]
 
 
Deferred revenue included in other current and non-current liabilities
$ 30.4 
$ 43.0 
Amount of residual value guarantees and buyback commitments given by the company
$ 32.8 
$ 42.9 
Standard product warranty, low end of range (in months)
12 months 
 
Standard product warranty, high end of range (in months)
60 months 
 
Guarantees - Summary of Warranty Activity (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Warranty activity
 
 
Balance at beginning of period
$ 32.4 
$ 36.1 
Accruals for warranties issued during the period
20.4 
22.4 
Settlements made (in cash or in kind) during the period
(23.7)
(24.4)
Currency translation
(0.5)
(1.7)
Balance at end of period
$ 28.6 
$ 32.4 
Restructuring and Asset Impairments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring expense
$ 23.4 
$ 9.4 
$ 6.6 
Asset impairment expense
96.9 
15.3 
Fixed Assets
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Asset impairment expense
13.8 
 
 
Enterprise Resource Planning Platform
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Asset impairment expense
58.6 
 
 
SAP and Other IT Assets
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Asset impairment expense
18.6 
 
 
Employee Severance
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring expense
 
3.5 
 
Employee Severance |
Chief Financial Officer
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring expense
2.3 
 
 
Relocation of Crawler Crane Operations |
Employee Severance |
Minimum
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring charges
10 
 
 
Relocation of Crawler Crane Operations |
Employee Severance |
Maximum
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring charges
15 
 
 
Relocation of Crawler Crane Operations |
Capital Expenditures |
Minimum
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring charges
10 
 
 
Relocation of Crawler Crane Operations |
Capital Expenditures |
Maximum
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring charges
15 
 
 
Relocation of Crawler Crane Operations |
Other Restructuring |
Minimum
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring charges
15 
 
 
Relocation of Crawler Crane Operations |
Other Restructuring |
Maximum
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring charges
20 
 
 
Relocation of Crawler Crane Operations |
Fixed Assets and Inventory |
Minimum
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring charges
20 
 
 
Relocation of Crawler Crane Operations |
Fixed Assets and Inventory |
Maximum
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring charges
$ 25 
 
 
Restructuring and Asset Impairments - Rollforward of the Company's Restructuring Activities (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Rollforward of all restructuring activities
 
 
 
Restructuring Reserve Balance, at the beginning of the period
$ 6.5 
 
 
Restructuring Expenses
23.4 
9.4 
6.6 
Use of Reserve
20.8 
 
 
Reserve Reclassifications
0.9 
 
 
Restructuring Reserve Balance, at the end of the period
$ 8.2 
$ 6.5 
 
Employee Benefit Plans - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
plan
Dec. 31, 2015
Dec. 31, 2014
Manitowoc Deferred Compensation Plan
 
 
 
Number of defined contribution retirement plans for the employees
 
 
Amortization of gains and losses in excess of specified percentage (as a percent)
10.00% 
 
 
Expenses related to the target benefit plan
$ 3.2 
$ 2.9 
$ 2.4 
Amounts accrued related to the target benefit plan
21.4 
26.9 
 
US Pension Plans
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Funded status
(47.0)
(74.6)
 
Estimated future employer contributions
4.7 
 
 
Accumulated benefit obligation
155.6 
218.5 
 
Non-US Pension Plans
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Funded status
(41.0)
(55.6)
 
Estimated future employer contributions
1.4 
 
 
Accumulated benefit obligation
76.2 
244.9 
 
Pension Plans
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Amounts in accumulated other comprehensive income that are expected to be recognized as components of net periodic benefit cost during the next fiscal year
(4.8)
 
 
Postretirement Health and Other
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Funded status
(41.6)
(51.8)
 
Amounts in accumulated other comprehensive income that are expected to be recognized as components of net periodic benefit cost during the next fiscal year
(0.1)
 
 
Annual rate of increase in the per capita cost of covered health care benefits assumed for measurement purposes (as a percent)
6.20% 
 
 
Ultimate health care cost trend rate (as a percent)
4.50% 
 
 
Estimated future employer contributions
3.6 
 
 
Retirement Savings Plan
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Total costs incurred under the Manitowoc Retirement Savings Plan
1.9 
3.2 
6.1 
Deferred Compensation Plan
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Number of deferred compensation plans
 
 
Number of investment programs
 
 
Deferred Compensation Plan |
Program A
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Program asset
1.0 
 
Program obligation
1.0 
1.4 
 
Deferred Compensation Plan |
Program B
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Program asset
11.3 
15.2 
 
Program obligation
15.2 
16.5 
 
Manitowoc Food Service |
Pension Plans
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Funded status
 
$ 32.5 
 
Employee Benefit Plans - Schedule of Components of Period Benefit Costs (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
US Pension Plans
 
 
 
Employee benefit plans
 
 
 
Service cost - benefits earned during the year
$ 0 
$ 0 
$ 0 
Interest cost of projected benefit obligation
6.8 
9.4 
10.3 
Expected return on assets
(5.7)
(9.0)
(9.5)
Amortization of prior service cost
Amortization of actuarial net loss (gain)
3.6 
5.1 
2.9 
Curtailment gain recognized
Net periodic benefit cost
4.7 
5.5 
3.7 
Weighted average assumptions:
 
 
 
Discount rate (as a percent)
4.50% 
4.10% 
4.90% 
Expected return on plan assets (as a percent)
5.50% 
5.80% 
6.00% 
Non-US Pension Plans
 
 
 
Employee benefit plans
 
 
 
Service cost - benefits earned during the year
1.7 
2.6 
2.4 
Interest cost of projected benefit obligation
2.5 
8.9 
11.3 
Expected return on assets
(1.8)
(7.4)
(9.4)
Amortization of prior service cost
0.1 
0.1 
0.1 
Amortization of actuarial net loss (gain)
1.0 
2.3 
1.5 
Curtailment gain recognized
Net periodic benefit cost
3.5 
6.5 
5.9 
Weighted average assumptions:
 
 
 
Discount rate (as a percent)
2.90% 
3.30% 
4.30% 
Expected return on plan assets (as a percent)
4.00% 
3.60% 
4.50% 
Rate of compensation increase (as a percent)
2.40% 
3.90% 
4.30% 
Postretirement Health and Other
 
 
 
Employee benefit plans
 
 
 
Service cost - benefits earned during the year
0.3 
0.4 
0.4 
Interest cost of projected benefit obligation
1.7 
2.0 
2.1 
Expected return on assets
Amortization of prior service cost
(0.3)
Amortization of actuarial net loss (gain)
0.1 
(0.1)
Curtailment gain recognized
Net periodic benefit cost
$ 2.0 
$ 2.5 
$ 2.1 
Weighted average assumptions:
 
 
 
Discount rate (as a percent)
4.20% 
3.70% 
4.50% 
Rate of compensation increase (as a percent)
 
1.50% 
3.00% 
Employee Benefit Plans - Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Change in Plan Assets
 
 
 
Fair value of plan assets, end of year
$ 150.4 
$ 340.8 
 
US Pension Plans
 
 
 
Change in Benefit Obligation
 
 
 
Benefit obligation, beginning of year
218.5 
235.9 
 
Distribution of MFS
(62.4)
 
Service cost
Interest cost
6.8 
9.4 
10.3 
Participant contributions
 
Medicare subsidies received
 
Plan settlements
 
Net transfer out
 
Actuarial (gain) loss
0.9 
(15.2)
 
Currency translation adjustment
 
Benefit payments
(8.2)
(11.6)
 
Benefit obligation, end of year
155.6 
218.5 
235.9 
Change in Plan Assets
 
 
 
Fair value of plan assets, beginning of year
143.9 
160.0 
 
Distribution of MFS
(34.1)
 
Actual return on plan assets
6.4 
(5.8)
 
Employer contributions
0.6 
1.3 
 
Participant contributions
 
Medicare subsidies received
 
Currency translation adjustment
 
Benefit payments
(8.2)
(11.6)
 
Fair value of plan assets, end of year
108.6 
143.9 
160.0 
Funded status
(47.0)
(74.6)
 
Amounts recognized in the Consolidated Balance sheet at December 31
 
 
 
Pension asset
 
Pension obligation
(47.0)
(74.6)
 
Postretirement medical and other benefit obligations
 
Net amount recognized
(47.0)
(74.6)
 
Weighted-Average Assumptions
 
 
 
Discount rate (as a percent)
4.20% 
4.50% 
 
Expected return on plan assets (as a percent)
5.50% 
5.80% 
6.00% 
Non-US Pension Plans
 
 
 
Change in Benefit Obligation
 
 
 
Benefit obligation, beginning of year
252.5 
279.5 
 
Distribution of MFS
(170.4)
 
Service cost
1.7 
2.6 
2.4 
Interest cost
2.5 
8.9 
11.3 
Participant contributions
0.1 
 
Medicare subsidies received
 
Plan settlements
 
Net transfer out
(0.3)
 
Actuarial (gain) loss
11.0 
(9.7)
 
Currency translation adjustment
(9.9)
(15.4)
 
Benefit payments
(4.6)
(13.2)
 
Benefit obligation, end of year
82.8 
252.5 
279.5 
Change in Plan Assets
 
 
 
Fair value of plan assets, beginning of year
196.9 
214.0 
 
Distribution of MFS
(147.8)
 
Actual return on plan assets
2.7 
1.5 
 
Employer contributions
2.2 
5.1 
 
Participant contributions
0.1 
 
Medicare subsidies received
 
Currency translation adjustment
(7.6)
(10.3)
 
Benefit payments
(4.6)
(13.2)
 
Fair value of plan assets, end of year
41.8 
196.9 
214.0 
Funded status
(41.0)
(55.6)
 
Amounts recognized in the Consolidated Balance sheet at December 31
 
 
 
Pension asset
 
Pension obligation
(41.0)
(55.6)
 
Postretirement medical and other benefit obligations
 
Net amount recognized
(41.0)
(55.6)
 
Weighted-Average Assumptions
 
 
 
Discount rate (as a percent)
2.10% 
3.50% 
 
Expected return on plan assets (as a percent)
4.00% 
3.60% 
4.50% 
Rate of compensation increase (as a percent)
2.40% 
3.90% 
 
Postretirement Health and Other
 
 
 
Change in Benefit Obligation
 
 
 
Benefit obligation, beginning of year
51.8 
57.0 
 
Distribution of MFS
(10.1)
 
Service cost
0.3 
0.4 
0.4 
Interest cost
1.7 
2.0 
2.1 
Participant contributions
1.9 
2.4 
 
Medicare subsidies received
0.2 
0.2 
 
Plan settlements
 
Net transfer out
 
Actuarial (gain) loss
1.8 
(2.0)
 
Currency translation adjustment
(0.2)
 
Benefit payments
(6.0)
(8.0)
 
Benefit obligation, end of year
41.6 
51.8 
57.0 
Change in Plan Assets
 
 
 
Fair value of plan assets, beginning of year
 
Distribution of MFS
 
Actual return on plan assets
 
Employer contributions
3.9 
5.4 
 
Participant contributions
1.9 
2.4 
 
Medicare subsidies received
0.2 
0.2 
 
Currency translation adjustment
 
Benefit payments
(6.0)
(8.0)
 
Fair value of plan assets, end of year
Funded status
(41.6)
(51.8)
 
Amounts recognized in the Consolidated Balance sheet at December 31
 
 
 
Pension asset
 
Pension obligation
 
Postretirement medical and other benefit obligations
(41.6)
(51.8)
 
Net amount recognized
$ (41.6)
$ (51.8)
 
Weighted-Average Assumptions
 
 
 
Discount rate (as a percent)
3.80% 
4.10% 
 
Rate of compensation increase (as a percent)
 
1.50% 
 
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Pension Plans
 
 
Employee benefit plans
 
 
Net actuarial gain (loss)
$ (65.1)
$ (113.5)
Prior service credit
(0.6)
(0.7)
Total amount recognized
(65.7)
(114.2)
Postretirement Health and Other
 
 
Employee benefit plans
 
 
Net actuarial gain (loss)
(5.1)
(3.8)
Prior service credit
Total amount recognized
$ (5.1)
$ (3.8)
Employee Benefit Plans - Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Pension Plans
 
 
Estimated increase (decrease) in 2017 pension cost
 
 
0.50% increase in discount rate
$ (0.8)
 
0.50% decrease in discount rate
0.9 
 
0.50% increase in long-term return on assets
(0.7)
 
0.50% decrease in long-term return on assets
0.7 
 
Estimated increase (decrease) in Projected Benefit Obligation for the year ended December 31, 2016
 
 
0.50% increase in discount rate
 
(13.6)
0.50% decrease in discount rate
 
14.9 
Postretirement Health and Other
 
 
Estimated increase (decrease) in 2017 pension cost
 
 
0.50% increase in discount rate
 
0.50% decrease in discount rate
0.1 
 
1% increase in medical trend rates
0.7 
 
1% decrease in medical trend rates
(0.3)
 
Estimated increase (decrease) in Projected Benefit Obligation for the year ended December 31, 2016
 
 
0.50% increase in discount rate
 
(1.5)
0.50% decrease in discount rate
 
1.6 
1% increase in medical trend rates
 
3.7 
1% decrease in medical trend rates
 
$ (3.3)
Employee Benefit Plans - Schedule of the Weighted-Average Asset Allocations of the Pension Plans (Details)
Dec. 31, 2016
Dec. 31, 2015
US Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
100.00% 
100.00% 
Non-US Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
100.00% 
100.00% 
Equity Securities |
US Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
25.00% 
24.50% 
Equity Securities |
Non-US Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
33.70% 
16.20% 
Fixed income |
US Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
74.40% 
74.80% 
Fixed income |
Non-US Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
31.10% 
29.20% 
Other |
US Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
0.60% 
0.70% 
Other |
Non-US Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
35.20% 
54.60% 
Employee Benefit Plans - Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
US Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Weighted-average asset allocation (as a percent)
100.00% 
100.00% 
Non-US Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Weighted-average asset allocation (as a percent)
100.00% 
100.00% 
Equity Securities |
US Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Target Allocations (as a percent)
25.00% 
 
Weighted-average asset allocation (as a percent)
25.00% 
24.50% 
Equity Securities |
Non-US Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Weighted-average asset allocation (as a percent)
33.70% 
16.20% 
Minimum (as a percent)
0.00% 
 
Maximum (as a percent)
25.00% 
 
Debt Securities |
US Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Target Allocations (as a percent)
75.00% 
 
Weighted-average asset allocation (as a percent)
74.40% 
 
Debt Securities |
Non-US Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Weighted-average asset allocation (as a percent)
31.10% 
 
Minimum (as a percent)
0.00% 
 
Maximum (as a percent)
100.00% 
 
Other |
US Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Target Allocations (as a percent)
0.00% 
 
Weighted-average asset allocation (as a percent)
0.60% 
0.70% 
Other |
Non-US Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Weighted-average asset allocation (as a percent)
35.20% 
54.60% 
Minimum (as a percent)
0.00% 
 
Maximum (as a percent)
100.00% 
 
Employee Benefit Plans - Schedule of Plan Assets Using the Fair Value Hierarchy (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
$ 150.4 
$ 340.8 
 
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
0.9 
2.0 
 
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
14.5 
106.5 
 
Common/collective trust funds — Government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Common/collective trust funds — Corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
38.4 
60.6 
 
Common/collective trust funds — Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
55.3 
98.7 
 
Common/collective trust funds — Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
41.3 
67.1 
 
Common/collective trust funds — Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
5.9 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
0.9 
2.0 
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
0.9 
2.0 
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds — Government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds — Corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds — Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds — Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds — Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Significant Other Observable Inputs (Level 2)
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
135.0 
232.3 
 
Significant Other Observable Inputs (Level 2) |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Significant Other Observable Inputs (Level 2) |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds — Government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds — Corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
38.4 
60.6 
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds — Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
55.3 
98.7 
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds — Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
41.3 
67.1 
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds — Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
5.9 
 
Unobservable Inputs (Level 3)
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
14.5 
106.5 
 
Unobservable Inputs (Level 3) |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Unobservable Inputs (Level 3) |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
14.5 
106.5 
117.7 
Unobservable Inputs (Level 3) |
Common/collective trust funds — Government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Unobservable Inputs (Level 3) |
Common/collective trust funds — Corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Unobservable Inputs (Level 3) |
Common/collective trust funds — Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Unobservable Inputs (Level 3) |
Common/collective trust funds — Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Unobservable Inputs (Level 3) |
Common/collective trust funds — Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
$ 0 
$ 0 
 
Employee Benefit Plans - Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
$ 150.4 
$ 340.8 
Level 3
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
14.5 
106.5 
Insurance group annuity contracts
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
14.5 
106.5 
Insurance group annuity contracts |
Level 3
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, beginning of year
106.5 
117.7 
Distribution of MFS
(89.9)
Actual return on plan assets
2.0 
1.0 
Benefit payments
(1.4)
(6.7)
Foreign currency impact
(2.7)
(5.5)
Fair value of plan assets, end of year
$ 14.5 
$ 106.5 
Employee Benefit Plans - Schedule of Projected Benefit Payments from the Plans (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
US Pension Plans
 
Projected benefit payments from the plans
 
2017
$ 9.4 
2018
9.7 
2019
9.9 
2020
10.1 
2021
10.1 
2022 - 2026
50.1 
Non-US Pension Plans
 
Projected benefit payments from the plans
 
2017
2.8 
2018
2.7 
2019
3.1 
2020
3.6 
2021
3.6 
2022 - 2026
20.0 
Postretirement Health and Other
 
Projected benefit payments from the plans
 
2017
3.6 
2018
3.8 
2019
3.8 
2020
3.8 
2021
3.8 
2022 - 2026
$ 15.6 
Employee Benefit Plans - Fair Value of Plan Assets for Which the Accumulated Benefit Obligation is in Excess of the Plan Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
US Pension Plans
 
 
Employee benefit plans
 
 
Projected benefit obligation
$ 155.6 
$ 218.5 
Accumulated benefit obligation
155.6 
218.5 
Fair value of plan assets
108.6 
143.9 
Non-US Pension Plans
 
 
Employee benefit plans
 
 
Projected benefit obligation
79.1 
252.5 
Accumulated benefit obligation
76.2 
244.9 
Fair value of plan assets
$ 38.4 
$ 196.9 
Leases - Future minimum rental obligations under non-cancelable operating leases (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Leases [Abstract]
 
 
 
Rental expense attributed to operating leases
$ 23.1 
$ 16.8 
$ 20.9 
Future minimum rental obligations under non-cancelable operating leases
 
 
 
2017
19.9 
 
 
2018
14.4 
 
 
2019
12.7 
 
 
2020
11.7 
 
 
2021
11.2 
 
 
Thereafter
27.5 
 
 
Total
$ 97.4 
 
 
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Data (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 378.2 
$ 349.8 
$ 457.7 
$ 427.4 
$ 543.1 
$ 438.2 
$ 477.7 
$ 406.7 
 
$ 1,600.0 
$ 1,865.7 
$ 2,305.2 
Cost of sales
332.7 
309.0 
370.4 
347.7 
454.9 
369.4 
379.9 
329.3 
 
1,359.8 
1,533.5 
1,838.0 
Gross profit
45.5 
40.8 
87.3 
79.7 
88.2 
68.8 
97.8 
77.4 
 
253.3 
332.2 
467.2 
Operating income (loss)
(23.8)
(134.2)
3.9 
0.8 
(13.9)
(9.3)
17.1 
(6.3)
 
(153.3)
(12.4)
107.1 
(Loss) income from continuing operations before taxes
(34.6)
(144.2)
(4.3)
(85.0)
(38.2)
(36.8)
(5.1)
(30.9)
 
(268.1)
(111.0)
(20.4)
Provision (benefit) for taxes on income
(2.6)
(5.3)
0.7 
107.7 
(25.3)
(6.4)
(0.7)
(8.7)
 
100.5 
(41.1)
(17.8)
Loss from continuing operations
(32.0)
(138.9)
(5.0)
(192.7)
(12.9)
(30.4)
(4.4)
(22.2)
 
(368.6)
(69.9)
(6.9)
(Loss) income from discontinued operations, net of income taxes
(1.4)
(1.8)
(0.8)
(3.2)
56.4 
34.4 
29.6 
15.0 
 
(7.2)
135.4 
161.4 
Net (loss) income
(33.4)
(140.7)
(5.8)
(195.9)
43.5 
4.0 
25.2 
(7.2)
 
(375.8)
65.5 
147.8 
Basic (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.23)
$ (1.00)
$ (0.04)
$ (1.41)
$ (0.09)
$ (0.22)
$ (0.03)
$ (0.16)
 
$ (2.68)
$ (0.51)
$ (0.05)
Income (loss) from discontinued operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.01)
$ (0.01)
$ (0.01)
$ (0.02)
$ 0.41 
$ 0.25 
$ 0.22 
$ 0.11 
 
$ (0.05)
$ 1.00 
$ 1.20 
Basic (loss) income per share attributable to Manitowoc common shareholders (in dollars per share)
$ (0.24)
$ (1.02)
$ (0.04)
$ (1.43)
$ 0.32 
$ 0.03 
$ 0.19 
$ (0.05)
 
$ (2.73)
$ 0.48 
$ 1.07 
Diluted (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.23)
$ (1.00)
$ (0.04)
$ (1.41)
$ (0.09)
$ (0.22)
$ (0.03)
$ (0.16)
 
$ (2.68)
$ (0.51)
$ (0.05)
Income (loss) from discontinued operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.01)
$ (0.01)
$ (0.01)
$ (0.02)
$ 0.41 
$ 0.25 
$ 0.22 
$ 0.11 
 
$ (0.05)
$ 1.00 
$ 1.20 
Diluted (loss) income per share attributable to Manitowoc common shareholders (in dollars per share)
$ (0.24)
$ (1.02)
$ (0.04)
$ (1.43)
$ 0.32 
$ 0.03 
$ 0.19 
$ (0.05)
 
$ (2.73)
$ 0.48 
$ 1.07 
Dividends per common share (in dollars per share)
$ 0 
$ 0 
$ 0 
$ 0 
$ 0.08 
$ 0 
$ 0 
$ 0 
$ 0.08 
$ 0 
 
 
Increase (Decrease) in Deferred Income Taxes
(12.6)
2.6 
1.1 
110.3 
(39.7)
0.7 
0.7 
33.9 
 
(101.4)
4.4 
(11.5)
Increase (Decrease) in Inventories
85.1 
7.5 
(6.2)
(33.7)
100.0 
(6.7)
(46.2)
(54.3)
 
(52.7)
7.2 
(32.6)
Historical
 
 
 
 
 
 
 
 
 
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
378.2 
349.8 
457.7 
427.4 
543.1 
438.2 
477.7 
406.7 
 
 
 
 
Cost of sales
332.7 
308.3 
369.5 
345.5 
454.6 
368.3 
382.8 
331.3 
 
 
 
 
Gross profit
45.5 
41.5 
88.2 
81.9 
88.5 
69.9 
94.9 
75.4 
 
 
 
 
Operating income (loss)
(23.8)
(133.5)
4.8 
3.0 
(13.6)
(8.2)
14.2 
(8.3)
 
 
(15.9)
107.5 
(Loss) income from continuing operations before taxes
(34.6)
(143.5)
(3.4)
(82.8)
(37.9)
(35.7)
(8.0)
(32.9)
 
 
(114.5)
(20.0)
Provision (benefit) for taxes on income
(2.6)
(5.3)
0.7 
121.5 
(25.3)
(6.1)
(1.7)
(9.5)
 
 
(42.6)
(18.0)
Loss from continuing operations
(32.0)
(138.2)
(4.1)
(204.3)
(12.6)
(29.6)
(6.3)
(23.4)
 
 
 
 
(Loss) income from discontinued operations, net of income taxes
(1.4)
(1.8)
(0.8)
(3.2)
56.4 
34.4 
29.6 
15.0 
 
 
 
 
Net (loss) income
(33.4)
(140.0)
(4.9)
(207.5)
43.8 
4.8 
23.3 
(8.4)
 
 
63.5 
148.4 
Basic (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.23)
$ (1.00)
$ (0.03)
$ (1.50)
$ (0.09)
$ (0.22)
$ (0.05)
$ (0.17)
 
 
$ (0.53)
$ (0.04)
Income (loss) from discontinued operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.01)
$ (0.01)
$ (0.01)
$ (0.02)
$ 0.41 
$ 0.25 
$ 0.22 
$ 0.11 
 
 
 
 
Basic (loss) income per share attributable to Manitowoc common shareholders (in dollars per share)
$ (0.24)
$ (1.01)
$ (0.04)
$ (1.52)
$ 0.32 
$ 0.04 
$ 0.17 
$ (0.06)
 
 
 
 
Diluted (loss) income per share:
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.23)
$ (1.00)
$ (0.03)
$ (1.50)
$ (0.09)
$ (0.22)
$ (0.05)
$ (0.17)
 
 
$ (0.53)
$ (0.04)
Income (loss) from discontinued operations attributable to Manitowoc common shareholders (in dollars per share)
$ (0.01)
$ (0.01)
$ (0.01)
$ (0.02)
$ 0.41 
$ 0.25 
$ 0.22 
$ 0.11 
 
 
 
 
Diluted (loss) income per share attributable to Manitowoc common shareholders (in dollars per share)
$ (0.24)
$ (1.01)
$ (0.04)
$ (1.52)
$ 0.32 
$ 0.04 
$ 0.17 
$ (0.06)
 
 
 
 
Dividends per common share (in dollars per share)
$ 0 
$ 0 
$ 0 
$ 0 
$ 0.08 
$ 0 
$ 0 
$ 0 
 
 
 
 
Increase (Decrease) in Deferred Income Taxes
(12.6)
2.6 
1.1 
124.1 
(39.7)
1.0 
(0.3)
33.1 
 
 
5.9 
(11.3)
Increase (Decrease) in Inventories
$ 85.1 
$ 6.8 
$ (7.1)
$ (35.9)
$ 99.7 
$ (7.8)
$ (43.3)
$ (52.3)
 
 
$ 3.7 
$ (32.2)
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited) - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Loss on debt extinguishment
 
 
 
 
 
 
 
 
$ 76.3 
$ 0.2 
$ 25.5 
Loss from continuing operations
 
 
 
 
 
 
 
 
368.6 
69.9 
2.6 
Comprehensive (loss) income attributable to Manitowoc
 
 
 
 
 
 
 
 
(398.9)
(11.8)
20.3 
Provision for taxes on income
 
 
 
 
 
 
 
 
0.6 
35.9 
26.5 
Tax benefit
(2.6)
(5.3)
0.7 
107.7 
(25.3)
(6.4)
(0.7)
(8.7)
100.5 
(41.1)
(17.8)
Accrued expenses and other liabilities
 
 
 
 
 
 
 
 
(9.3)
7.6 
(145.4)
Net cash (used for) provided by operating activities of discontinued operations
 
 
 
 
 
 
 
 
(49.9)
126.3 
197.7 
Restatement Adjustment
 
 
 
 
 
 
 
 
 
 
 
Loss on debt extinguishment
 
 
 
4.3 
 
 
 
 
 
 
 
Overstated income tax expense
 
 
 
0.8 
 
 
 
 
 
 
 
Loss from continuing operations
 
 
 
3.5 
 
 
 
 
 
(2.0)
0.6 
Comprehensive (loss) income attributable to Manitowoc
 
 
 
(2.6)
 
 
 
 
 
 
 
Retained earnings adjustment
 
 
 
2.6 
 
 
 
 
 
 
 
Provision for taxes on income
 
 
 
2.1 
 
 
 
 
 
 
 
Tax benefit
 
 
 
2.1 
 
 
 
 
 
1.5 
0.2 
Accrued expenses and other liabilities
 
 
 
16.2 
 
 
 
 
 
 
 
Net cash (used for) provided by operating activities of discontinued operations
 
 
 
$ (16.2)
 
 
 
 
 
 
 
Schedule II: Valuation and Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Allowance for doubtful accounts
 
 
 
Valuation and Qualifying Accounts
 
 
 
Balance at Beginning of Year
$ 12.8 
$ 15.4 
$ 15.1 
Charge to Costs and Expenses
1.0 
2.5 
4.9 
Utilization of Reserve
(2.9)
(3.5)
(3.2)
Other, Primarily Impact of Foreign Exchange Rates
0.2 
(1.6)
(1.4)
Balance at end of Year
11.1 
12.8 
15.4 
Deferred tax valuation allowance
 
 
 
Valuation and Qualifying Accounts
 
 
 
Balance at Beginning of Year
86.5 
85.2 
100.6 
Charge to Costs and Expenses
199.2 
11.4 
4.2 
Utilization of Reserve
(4.1)
(1.9)
(9.8)
Other, Primarily Impact of Foreign Exchange Rates
(12.0)
(8.2)
(9.8)
Balance at end of Year
$ 269.6 
$ 86.5 
$ 85.2