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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 10-K

	
		
ý	Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934	
 
For the fiscal year ended December 31, 2012
 
or

	
		
o	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934	
 
For the transition period from              to             
 
Commission File Number
1-11978

The Manitowoc Company, Inc.
(Exact name of registrant as specified in its charter)

	
			
Wisconsin	 	39-0448110	
(State or other jurisdiction	 	(I.R.S. Employer	
of incorporation)	 	Identification Number)	
 	 	 	
2400 South 44th Street,	 	 	
Manitowoc, Wisconsin	 	54221-0066	
(Address of principal executive offices)	 	(Zip Code)	
 
(920) 684-4410
(Registrant’s telephone number, including area code)
 
Securities Registered Pursuant to Section 12(b) of the Act:

	
			
Title of each class	 	Name of each exchange on which registered	
Common Stock, $.01 Par Value	 	New York Stock Exchange	
Common Stock Purchase Rights	 	 	
 
Securities Registered Pursuant to Section 12(g) of the Act: None
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý No  o
 
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o   No  ý
 
Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý   No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ý   No o
 
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer, accelerated filer, and smaller reporting company” in Rule 12b-2 of the Exchange Act.

	
			
Large accelerated filer   x	 	Accelerated filer   o	
Non-accelerated filer   o
  (Do not check if a smaller reporting company)	 	Smaller reporting company   o	
 
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o   No ý
 
The Aggregate Market Value on June 29, 2012, of the registrant’s Common Stock held by non-affiliates of the registrant was $1,534.3 million based on the closing per share price of $11.70 on that date.
 
The number of shares outstanding of the registrant’s Common Stock as of January 31, 2013 , the most recent practicable date, was 132,781,078.
 
DOCUMENTS INCORPORATED BY REFERENCE
 
Portions of the registrant’s Proxy Statement, to be prepared and filed for the Annual Meeting of Shareholders, dated March 22, 2013 (the “2013 Proxy Statement”), are incorporated by reference in Part III of this report.
 
See Index to Exhibits immediately following the signature page of this report, which is incorporated herein by reference.

Table of Contents

THE MANITOWOC COMPANY, INC.
Index to Annual Report on Form 10-K
For the Year Ended December 31, 2012

	
			
 	 	PAGE	
 	 	 	
 	PART I	 	
 	 	 	
Item 1	Business	3	
Item 1A	Risk Factors	12	
Item 1B	Unresolved Staff Comments	16	
Item 2	Properties	16	
Item 3	Legal Proceedings	19	
 	Executive Officers of Registrant	19	
Item 4	Mine Safety Disclosure	20	
 	 	 	
 	PART II	 	
 	 	 	
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	21	
Item 6	Selected Financial Data	22	
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24	
Item 7A	Quantitative and Qualitative Disclosure about Market Risk	47	
Item 8	Financial Statements and Supplementary Data	48	
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	107	
Item 9A	Controls and Procedures	108	
Item 9B	Other Information	108	
 	 	 	
 	PART III	 	
 	 	 	
Item 10	Directors, Executive Officers and Corporate Governance	109	
Item 11	Executive Compensation	109	
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	109	
Item 13	Certain Relationships and Related Transactions, and Director Independence	109	
Item 14	Principal Accounting Fees and Services	109	
 	 	 	
 	PART IV	 	
 	 	 	
Item 15	Exhibits and Financial Statement Schedules	110	

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PART I
Item 1.  BUSINESS
GENERAL
The Manitowoc Company, Inc. (referred to as the company, MTW, Manitowoc, we, our, and us) was founded in 1902. We are a multi-industry, capital goods manufacturer operating in two principal markets: Cranes and Related Products (Crane) and Foodservice Equipment (Foodservice). Crane is recognized as one of the world’s leading providers of engineered lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. Foodservice is one of the world’s leading innovators and manufacturers of commercial foodservice equipment serving the ice, beverage, refrigeration, food-preparation, and cooking needs of restaurants, convenience stores, hotels, healthcare, and institutional applications. We have over a 110-year tradition of providing high-quality, customer-focused products and support services to our markets.  For the year ended December 31, 2012 , we had net sales of approximately $3.9 billion .
Our Crane business is a global provider of engineered lift solutions, offering one of the broadest product lines of lifting equipment in our industry.  We design, manufacture, market, and support a comprehensive line of lattice-boom crawler cranes, mobile telescopic cranes, tower cranes, and boom trucks.  Our Crane products are principally marketed under the Manitowoc, Grove, Potain, National, Shuttlelift, and Crane Care brand names and are used in a wide variety of applications, including energy and utilities, petrochemical and industrial projects, infrastructure developments such as road, bridge and airport construction, and commercial and high-rise residential construction.
Our Foodservice business is among the world’s leading designers and manufacturers of commercial foodservice equipment.  Our Foodservice capabilities span refrigeration, ice-making, cooking, holding, food-preparation, and beverage-dispensing technologies, and allow us to be able to equip entire commercial kitchens and serve the world’s growing demand for food prepared away from home.  Our Foodservice products are marketed under the Manitowoc, Garland, U.S. Range, Convotherm, Cleveland, Lincoln, Merrychef, Frymaster, Delfield, Kolpak, Kysor Panel, Servend, Multiplex, and Manitowoc Beverage System brand names.
During the fourth quarter of 2012, the company decided to divest its warewashing equipment business, which operated under the brand name Jackson, and classified this business as discontinued operations in the company's financial statements. Jackson designs, manufactures and sells warewashing equipment, offering a full range of undercounter dishwashers, door-type dishwashers, conveyor, pot washing, and flight-type dishwashers. On January 28, 2013, the company sold the Jackson warewashing equipment business to Hoshizaki USA Holdings, Inc. for approximately $38.5 million. Net proceeds were used to reduce ratably the then-outstanding balances of Term Loan A and B.
On December 15, 2010, the company reached a definitive agreement to divest of its Kysor/Warren and Kysor/Warren de Mexico businesses to Lennox International for approximately $145 million.  The transaction subsequently closed on January 14, 2011 and the net proceeds were used to pay down outstanding debt.  The results of these operations have been classified as discontinued operations.
In order to secure clearance for the acquisition of Enodis plc (“Enodis”) from various regulatory authorities including the European Commission and the United States Department of Justice, the company agreed to sell substantially all of Enodis’ global ice machine operations following completion of the transaction.  In May 2009, the company completed the sale of the Enodis global ice machine operations to Braveheart Acquisition, Inc., an affiliate of Warburg Pincus Private Equity X, L.P., for $160 million.  The businesses sold were operated under the Scotsman, Ice-O-Matic, Simag, Barline, Icematic, and Oref brand names.  The company also agreed to sell certain non-ice businesses of Enodis located in Italy that are operated under the Tecnomac and Icematic brand names.  Prior to disposal, the antitrust clearances required that the ice businesses were treated as standalone operations, in competition with the company.  The results of these operations have been classified as discontinued operations.
In December 2008, the company completed the sale of its Marine segment to Fincantieri Marine Group Holdings Inc., a subsidiary of Fincantieri - Cantieri Navali Italiani SpA. The sale price in the all-cash deal was approximately $120 million.  The results of these operations have been classified as discontinued operations.
In October 2008, we completed our acquisition of Enodis, a global leader in the design and manufacture of innovative equipment for the commercial foodservice industry.  The $2.7 billion acquisition, inclusive of the purchase of outstanding shares and rights to shares, acquired debt, the settlement of hedges related to the acquisition and transaction fees, is the largest acquisition for the company and positioned Manitowoc among the world’s leading designers and manufacturers of commercial foodservice equipment.

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Our principal executive offices are located at 2400 South 44th Street, Manitowoc, Wisconsin 54220.
BUSINESS STRATEGY

We are committed to our tradition of providing high-quality, customer-focused products and services and building our market-leadership positions in our two core businesses. Major elements of our business strategy are as follows:

Emphasize new product development and innovation

We intend to continue to invest capital to develop new products and enhance our existing products with improved cost-effective functionality in response to changing customer requirements. In our Crane segment we have implemented a rigorous Integrated Product Development ("IPD") process that we expect will generate 14 new or updated products in the next two years. We believe these projects will keep us at the forefront of technology and innovation in each of our product lines. Such recent innovations include the introduction of our 2,500 U.S. ton capacity crawler crane, our new patented variable positioning counterweight technology, our innovative winch technology on our tower cranes, and our mega-track suspension systems on our all-terrain cranes.

Similarly in our Foodservice segment, innovative new products include customer-specific models of the Frymaster Protector Fryer which facilitate the use of healthier, zero-trans-fat oil by reducing the amount of oil required to produce consumer-favorite items; new categories of blended ice machines which produce portion-controlled coffee, fruit, yogurt and other flavored "smoothie" drinks in demand by consumers who crave fresh, healthy meal alternatives; and new Indigo line of ice machines, which allow owners to program ice production and monitor key functions, including ice clarity, machine maintenance and energy/water usage, while inhibiting bacterial growth with its unique LuminIce™ feature. We continue to develop resource-saving and reduced environmental footprint products with reduced energy and water consumption, built from materials that are more easily recycled, and shipped in packaging with more recycled content.

For the second consecutive year, the U.S. Environmental Protection Agency ("EPA") and Energy Star recognized our Foodservice segment in 2012 as an Energy Star Sustaining Excellence award winner for its contribution to reducing greenhouse gas emissions by manufacturing energy-efficient products and helping to educate consumers about those products.

Focus on capital, operating efficiency and our company values

We manage our businesses using various qualitative and quantitative measures of success, including an overarching commitment to the framework of economic value-added (EVA ® ), which drives us to deploy capital in areas with the greatest expected after-tax returns in excess of the cost of capital employed. We will continue to manage our business with rigorous financial and operating discipline aimed at continuously improving value for our shareholders, customers, employees and communities. Operational excellence is one of our seven strategic imperatives and is very important to maintaining and growing our market positions in both segments. The principles of lean manufacturing and Six Sigma are ingrained in a continuous improvement culture in both the Crane and Foodservice segments.

Just as with people, businesses have to decide what it is they stand for and believe in if they are to grow and be successful. At Manitowoc, our beliefs are best summarized in three core values: Integrity, Commitment to Stakeholders, and Passion for Excellence. We rely on these values every day, throughout the company, to set clear expectations, guide decisions and actions, and measure progress. They help us not only build our personal success, but the successes of our teams, business units, and company as a whole.

Optimize global footprint

Over the long-term we plan to continue to optimize our manufacturing, distribution and service networks in existing and select geographic markets. Where appropriate, we will continue to pursue joint ventures and licensing agreements to leverage the operating experience, technical expertise and local market knowledge of our strategic partners.

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FINANCIAL INFORMATION ABOUT BUSINESS SEGMENTS
The following is financial information about the Crane and Foodservice segments for the years ended December 31, 2012 , 2011 and 2010 .  The financial information for 2011 and 2010 has been revised to correct errors identified that relate to prior periods.  See Note 1, “Company and Basis of Presentation” for further discussion.  The accounting policies of the segments are the same as those described in the summary of significant accounting policies of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K, except that certain expenses are not allocated to the segments.  These unallocated expenses are corporate overhead, amortization expense of intangible assets with definite lives, goodwill impairment, intangible asset impairment, restructuring expense, integration expense and other non-operating expenses.  The company evaluates segment performance based upon profit and loss before the aforementioned expenses.  Amounts are shown in millions of dollars.

												
(in millions)	2012	 	2011	 	2010	
Net sales from continuing operations:	 		 	 		 	 		
Crane	$	2,440.8		 	$	2,164.6		 	$	1,748.6		
Foodservice	1,486.2		 	1,454.6		 	1,362.9		
Total	$	3,927.0		 	$	3,619.2		 	$	3,111.5		
 	 	 	 	 	 	
Operating earnings from continuing operations:	 		 	 		 	 		
Crane	$	156.0		 	$	108.2		 	$	90.6		
Foodservice	238.6		 	214.4		 	201.9		
Corporate	(63.7	)	 	(61.3	)	 	(42.0	)	
Amortization expense	(37.1	)	 	(37.9	)	 	(37.4	)	
Restructuring expense	(9.5	)	 	(5.5	)	 	(3.8	)	
Other expense	(2.5	)	 	0.5		 	(2.3	)	
Total	$	281.8		 	$	218.4		 	$	207.0		
 	 	 	 	 	 	
Capital expenditures:	 		 	 		 	 		
Crane	$	52.7		 	$	52.2		 	$	21.9		
Foodservice	17.4		 	11.9		 	12.0		
Corporate	2.8		 	0.7		 	2.0		
Total	$	72.9		 	$	64.8		 	$	35.9		
 	 	 	 	 	 	
Total depreciation:	 		 	 		 	 		
Crane	$	44.9		 	$	54.2		 	$	56.5		
Foodservice	22.3		 	24.5		 	27.1		
Corporate	2.3		 	2.8		 	2.9		
Total	$	69.5		 	$	81.5		 	$	86.5		
 	 	 	 	 	 	
Total assets:	 		 	 		 	 		
Crane	$	1,903.3		 	$	1,760.8		 	$	1,659.3		
Foodservice	1,956.8		 	2,192.6		 	2,193.4		
Corporate	197.2		 	69.2		 	219.6		
Total	$	4,057.3		 	$	4,022.6		 	$	4,072.3		

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PRODUCTS AND SERVICES
We sell our products categorized in the following business segments:

							
Business Segment	 	Percentage of
2012 Net Sales	 	Key Products	 	Key Brands	
Cranes and Related Products	 	62%	 	Lattice-boom Cranes: which include crawler and truck mounted lattice-boom cranes, and crawler crane attachments; Tower Cranes: which include top-slewing, luffing jib, topless, and self-erecting tower cranes; Mobile Telescopic Cranes: which include rough-terrain, all-terrain, truck-mounted and industrial cranes; Boom Trucks: which include telescopic boom trucks; and Parts and Service: which include replacement parts, product services and crane rebuilding and remanufacturing services.	 	Manitowoc
Potain
Grove
National Crane
Shuttlelift
Dongyue
Crane Care	
Foodservice Equipment	 	38%	 	Primary cooking and warming equipment; ice machines and storage bins; refrigerator and freezer equipment; beverage dispensers and related products; serving and storage equipment; and parts and service.
	 	Cleveland
Convotherm
Delfield
Frymaster
Garland
Kolpak
Kysor Panel Systems
Lincoln
Manitowoc
Merrychef
Multiplex
Servend
	
Cranes and Related Products

Our Crane segment designs, manufactures and distributes a diversified line of crawler-mounted lattice-boom cranes, which we sell under the Manitowoc brand name. Our Crane segment also designs and manufactures a diversified line of top-slewing and self-erecting tower cranes, which we sell under the Potain brand name. We design and manufacture mobile telescopic cranes, which we sell under the Grove and Shuttlelift brand names, and a comprehensive line of hydraulically powered telescopic boom trucks, which we sell under the National Crane brand name. We also provide crane product parts and services, and crane rebuilding, remanufacturing, and training services, which are delivered under the Manitowoc Crane Care brand name. In some cases our products are manufactured for us or distributed for us under strategic alliances. Our crane products are used in a wide variety of applications throughout the world, including energy production / distribution and utilities, petrochemical and industrial projects, infrastructure development such as road, bridge and airport construction, and commercial low-rise and high-rise residential construction. Many of our customers purchase one or more cranes together with several attachments to permit use of the crane in a broader range of lifting applications and other operations. Our largest crane model combined with available options has a lifting capacity up to 2,500 U.S. tons. We believe our primary near-term growth drivers are the relative strength in the energy, infrastructure, construction and petro-chemical-related end markets.

Lattice-boom cranes. Under the Manitowoc brand name we design, manufacture and distribute lattice-boom crawler cranes. Lattice-boom cranes consist of a lattice-boom, which is a fabricated, high-strength steel structure that has four chords and tubular lacings, mounted on a base which is either crawler or truck mounted. Lattice-boom cranes weigh less and provide higher lifting capacities than a telescopic boom of similar length. The lattice-boom cranes are the only category of crane that can pick and move simultaneously with a full-rated load. The lattice-boom sections, together with the crane base, are transported to and erected at a project site.

We currently offer models of lattice-boom cranes with lifting capacities up to 2,500 U.S. tons, which are used to lift material and equipment in a wide variety of applications and end markets, including heavy construction, bridge and highway, duty cycle and infrastructure and energy related projects. These cranes are also used by the value-added crane rental industry, which serves all of the above end markets.

Lattice-boom crawler cranes may be classified according to their lift capacity-low capacity and high capacity. Low-capacity crawler cranes with 150-U.S. ton capacity or less are often utilized for general construction and duty-cycle applications. High-capacity crawler cranes with greater than 150-U.S. ton capacity are used to lift materials in a wide variety of applications and are often used in heavy construction, energy-related, stadium construction, petrochemical work, and dockside applications. We offer ten low-capacity models and nine high-capacity models.

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We also offer our lattice-boom crawler crane customers various attachments that provide our cranes with greater capacity in terms of height, movement and lifting. Our principal attachments are: MAX-ER™ attachments, luffing jibs, and RINGER™ attachments. The MAX-ER™ is a trailing counterweight, heavy-lift attachment that dramatically improves the reach, capacity and lift dynamics of the basic crane to which it is mounted. It can be transferred between cranes of the same model for maximum economy and occupies less space than competitive heavy-lift systems. A luffing jib is a fabricated structure similar to, but smaller than, a lattice-boom. Mounted at the tip of a lattice-boom, a luffing jib easily adjusts its angle of operation permitting one crane with a luffing jib to make lifts at additional locations on the project site. It can be transferred between cranes of the same model to maximize utilization. A RINGER™ attachment is a high-capacity lift attachment that distributes load reactions over a large area to minimize ground-bearing pressure. It can also be more economical than transporting and setting up a larger crane.

Tower cranes . Under the Potain brand name, we design and manufacture tower cranes utilized primarily in the energy, building and construction industries. Tower cranes offer the ability to lift and distribute material at the point of use more quickly and accurately than other types of lifting machinery without utilizing substantial square footage on the ground. Tower cranes include a stationary vertical mast and a horizontal jib with a counterweight, which is placed near the vertical mast. A cable runs through a trolley which is mounted on the jib, enabling the load to move along the jib. The jib rotates 360 degrees, thus increasing the crane's work area. Unless using a remote control device, operators occupy a cabin, located where the jib and mast meet, which provides superior visibility above the worksite. We offer a complete line of tower crane products, including top slewing, luffing jib, topless, self-erecting, and special cranes for dams, harbors and other large building projects. Top-slewing cranes are the most traditional form of tower cranes. Self-erecting cranes are bottom-slewing cranes which have a counterweight located at the bottom of the mast and are able to be erected, used and dismantled on job sites without assist cranes.

Top-slewing tower cranes have a tower and multi-sectioned horizontal jib. These cranes rotate from the top of their mast and can increase in height with the project. Top-slewing cranes are transported in separate pieces and assembled at the construction site in one to three days depending on the height. We offer 21 models of top-slewing tower cranes with maximum jib lengths of 80 meters and lifting capabilities ranging between 5 and 80 meter-tons. These cranes are generally sold to medium to large energy, building and construction groups, as well as to rental companies.

Topless tower cranes are a type of top-slewing crane and, unlike all others, have no cathead or jib tie-bars on the top of the mast. The cranes are utilized primarily when overhead height is constrained or in situations where several cranes are installed close together. We currently offer 15 models of topless tower cranes with maximum jib lengths of 75 meters and lifting capabilities ranging between 2.5 and 20 meter-tons.

Luffing jib tower cranes, which are a type of top-slewing crane, have an angled rather than horizontal jib. Unlike other tower cranes which have a trolley that controls the lateral movement of the load, luffing jib cranes move their load by changing the angle of the jib. The cranes are utilized primarily in urban areas where space is constrained or in situations where several cranes are installed close together. We currently offer nine models of luffing jib tower cranes with maximum jib lengths of 60 meters and lifting capabilities ranging between 8 and 32 meter-tons.

Self-erecting tower cranes are mounted on axles or transported on a trailer. The lower segment of the range (Igo cranes up to Igo50) unfolds in four sections, two for the mast and two for the jib. The smallest of our models unfolds in less than eight minutes; larger models erect in a few hours. Self-erecting cranes rotate from the bottom of their mast. We offer 24 models of self-erecting cranes with maximum jib lengths of 50 meters and lifting capacities ranging between 1 and 8 meter-tons which are utilized primarily in low to medium rise construction and residential applications.

Mobile telescopic cranes . Under the Grove brand name we design and manufacture 36 models of mobile telescopic cranes utilized primarily in industrial, commercial and construction applications, as well as in maintenance applications to lift and move material at job sites. Mobile telescopic cranes consist of a telescopic boom mounted on a wheeled carrier. Mobile telescopic cranes are similar to lattice-boom cranes in that they are designed to lift heavy loads using a mobile carrier as a platform, enabling the crane to move on and around a job site without typically having to re-erect the crane for each particular job. Additionally, many mobile telescopic cranes have the ability to drive between sites, and some are permitted on public roadways. We currently offer the following four types of mobile telescopic cranes capable of reaching tip heights of up to 427 feet with lifting capacities up to 550 U.S. tons: rough-terrain, all-terrain, truck-mounted, and industrial.

Rough-terrain cranes are designed to lift materials and equipment on rough or uneven terrain. These cranes cannot be driven on public roadways, and, accordingly, must be transported by truck to a work site. We produce, under the Grove brand name, nine models of rough-terrain cranes capable of tip heights of up to 312 feet and maximum load capacities of up to 150 U.S. tons.

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All-terrain cranes are versatile cranes designed to lift materials and equipment on rough or uneven terrain and yet are highly maneuverable and capable of highway speeds. We produce, under the Grove brand name, 14 models of all-terrain cranes capable of tip heights of up to 449 feet and maximum load capacities of up to 550 U.S. tons.

Truck-mounted cranes are designed to provide simple set-up and long reach high capacity booms and are capable of traveling from site to site at highway speeds. These cranes are suitable for urban and suburban uses. We produce, under the Grove brand name, five models of truck mounted cranes capable of tip heights of up to 237 feet and maximum load capacities of up to 90 U.S. tons.

Industrial cranes are designed primarily for plant maintenance, storage yard and material handling jobs. We manufacture, under the Grove and Shuttlelift brand names, seven models of industrial cranes. We produce industrial cranes with up to 25 U.S. ton capacity and tip heights of up to 86 feet.

High reach telescopic hydraulic cranes.  The GTK 1100 is a high-reach telescopic hydraulic crane that can lift a 105 U.S. ton load up to 367 feet, only requires about six hours to erect and is based on a combination of mobile crane and tower crane technology.

Boom trucks.  We offer our hydraulic boom truck products under the National Crane product line. A boom truck is a hydraulically powered telescopic crane mounted on a conventional truck chassis. Telescopic boom trucks are used primarily for lifting material on a job site. We currently offer, under the National Crane brand name, 18 models of telescoping boom trucks. The largest capacity cranes of this type are capable of reaching maximum heights of 205 feet and have lifting capacity up to 55 U.S. tons.
Backlog . The year-end backlog of crane products includes accepted orders that have been placed on a production schedule that we expect to be shipped and billed during the next year. Manitowoc’s backlog of unfilled orders for the Crane segment at December 31, 2012 , 2011 and 2010 was $755.8 million, $760.5 million and $571.7 million, respectively.
Foodservice Equipment
Our Foodservice Equipment business designs, manufactures and sells primary cooking and warming equipment; ice machines and storage bins; refrigerator and freezer equipment; beverage dispensers and related products; and serving and storage equipment. Our suite of products is used by commercial and institutional foodservice operators such as full service restaurants, quick-service restaurant (QSR) chains, hotels, caterers, supermarkets, convenience stores, business and industry, hospitals, schools and other institutions. We have a presence throughout the world's most significant markets in the following product groups:

Primary cooking and warming equipment.  We design, manufacture and sell a broad array of ranges, griddles, grills, combination ovens, convection ovens, conveyor ovens, induction cookers, broilers, tilt fry pans/kettles/skillets, braising pans, cheese melters/salamanders, cook stations, table top and counter top cooking/frying systems, fryers, steam jacketed kettles, and steamers. We sell traditional oven, combi oven, convection oven, conveyor oven, accelerated cooking oven, range and grill products under the Convotherm, Garland, Lincoln, Merrychef, U.S. Range, and other brand names. Fryers and frying systems are marketed under the Frymaster and Dean brand names, while steam equipment is manufactured and sold under the Cleveland brand. In addition to cooking, we provide a range of warming, holding, and serving equipment under the Delfield, Fabristeel, Frymaster, Merco, and other brand names.

Ice-cube machines, ice flaker machines, nugget ice machines, ice dispensers and storage bins.  We design, manufacture and sell ice machines under the Manitowoc brand name, serving the foodservice, convenience store, healthcare, restaurant, lodging and other markets. Our ice machines make ice in cube, nugget and flake form, and range in daily production capacities. The ice-cube machines are either self-contained units, which make and store ice, or modular units, which make, but do not store ice.

Refrigerator and freezer equipment.  We design, manufacture and sell commercial upright and undercounter refrigerators and freezers, blast freezers, blast chillers and cook-chill systems under the Delfield, McCall, Koolaire and other brand names. We manufacture under the brand names Kolpak, Kysor Panel Systems and Harford-Duracool modular and fully assembled walk-in refrigerators, coolers and freezers and prefabricated cooler and freezer panels for use in the construction of refrigerated storage rooms and environmental systems. We also design and manufacture customized refrigeration systems under the RDI brand name.

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Beverage dispensers and related products.  We produce beverage dispensers, blended ice machines, ice/beverage dispensers, beer coolers, post-mix dispensing valves, backroom equipment and support system components and related equipment for use by QSR chains, convenience stores, bottling operations, movie theaters, and the soft-drink industry. Our beverage and related products are sold under the Servend, Multiplex, TruPour, Manitowoc Beverage Systems and McCann's brand names.

Serving and storage equipment.  We design, manufacture and sell a range of cafeteria/buffet equipment stations, bins, boxes, warming cabinets, display and deli cases, insulated and refrigerated salad/food bars, and warmers. Our equipment stations, cases, food bars and food serving lines are marketed under the Delfield, Viscount and other brand names.

The end-customer base for the Foodservice Equipment segment is comprised of a wide variety of foodservice providers, including, but not limited to, large multinational and regional chain restaurants, convenience stores and retail stores; chain and independent casual and family dining restaurants; independent restaurants and caterers; lodging, resort, leisure and convention facilities; health care facilities; schools and universities; large business and industrial customers; and many other foodservice outlets. We cater to some of the largest and most widely recognized multinational and regional businesses in the foodservice and hospitality industries. We do not typically have long-term contracts with our customers; however, large chains frequently authorize specific foodservice equipment manufacturers as approved vendors for particular products, and thereafter, sales are made locally or regionally to end customers via kitchen equipment suppliers, dealers or distributors. Many large QSR chains refurbish or open a large number of outlets, or implement menu changes requiring investment in new equipment, over a short period of time. When this occurs, these customers often choose a small number of manufacturers whose approved products may or must be purchased by restaurant operators. We work closely with our customers to develop the products they need and to become the approved vendors for these products.

Our end-customers often need equipment upgrades that enable them to improve productivity and food safety, reduce labor costs, respond to enhanced hygiene, environmental and menu requirements or reduce energy consumption. These changes often require customized cooking and cooling and freezing equipment. In addition, many restaurants, especially QSRs, seek to differentiate their products by changing their menu and format. We believe that product development is important to our success because a supplier's ability to provide customized or innovative foodservice equipment is a primary factor when customers are making their purchasing decisions. Recognizing the importance of providing innovative products to our customers, we invest significant time and resources into new product research and development.

The Manitowoc Education and Technology Centers ("ETC") in New Port Richey, Florida and Hangzhou, China contain computer-assisted design platforms, a model shop for on-site development of prototypes, a laboratory for product testing and various display areas for new products. Our test kitchen, flexible demonstration areas and culinary team enable us to demonstrate a wide range of equipment in realistic operating environments, and also support a wide range of menu ideation, food development and sensory testing with our customers and food partners. We also use the ETC to provide training for our customers, marketing representatives, service providers, industry consultants, dealers and distributors.

Backlog . The backlog for unfilled orders for our Foodservice segment at December 31, 2012 , 2011 and 2010 was not significant because orders are generally filled shortly after receiving the customer order.
Raw Materials and Supplies
The primary raw materials that we use are structural and rolled steel, aluminum, and copper, which are purchased from various domestic and international sources. We also purchase engines and electrical equipment and other semi- and fully-processed materials. Our policy is to maintain, wherever possible, alternate sources of supply for our important materials and parts. We maintain inventories of steel and other purchased material. We have been successful in our goal to maintain alternative sources of raw materials and supplies, and therefore are not dependent on a single source for any particular raw material or supply.
Patents, Trademarks, and Licenses
We hold numerous patents pertaining to our Crane and Foodservice products, and have presently pending applications for additional patents in the United States and foreign countries. In addition, we have various registered and unregistered trademarks and licenses that are of material importance to our business and we believe our ownership of this intellectual property is adequately protected in customary fashions under applicable laws.  No single patent, trademark or license is critical to our overall business.
Seasonality
Typically, the second and third quarters represent our best quarters for our consolidated financial results. More recently, the traditional seasonality for our Crane and Foodservice segments has been slightly muted due to more diversified product and

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geographic end markets, as well as the impact that the global economic recession and downturn in our end markets has had on our revenue.  In our Crane segment, the northern hemisphere summer represents the main construction season.  Customers require new machines, parts, and service during that season.  Since the summer brings warmer weather, there is also an increase in the use and replacement of ice machines, as well as new construction and remodeling within the foodservice industry.  As a result, distributors build inventories during the second quarter to prepare for increased demand.
Competition
We sell all of our products in highly competitive industries. We compete in each of our industries based on product design, quality of products and aftermarket support services, product performance, maintenance costs, energy and resource saving, other contributions to sustainability and price. Some of our competitors may have greater financial, marketing, manufacturing or distribution resources than we do. We believe that we benefit from the following competitive advantages: a strong brand name, a reputation for quality products and aftermarket support services, an established network of global distributors and customer relationships, broad product line offerings in the markets we serve, and a commitment to engineering design and product innovation. However, we cannot be certain that our products and services will continue to compete successfully or that we will be able to retain our customer base or improve or maintain our profit margins on sales to our customers. The following table sets forth our primary competitors in each of our business segments: 

					
Business Segment	 	Products	 	Primary Competitors	
Cranes and Related Products	 	Lattice-boom Crawler Cranes	 	Hitachi Sumitomo; Kobelco; Liebherr; Sumitomo/Link-Belt; Terex; XCMG; Fushun; Zoomlion; Fuwa; and Sany	
 	 	 	 	 	
 	 	Tower Cranes	 	Comansa; Terex Comedil/Peiner; Liebherr; FM Gru; Jaso; Raimondi; Viccario; Saez; Benezzato; Cattaneo; Sichuan Construction Machinery; Shenyang; Zoomlion; Jianglu; and Yongmao	
 	 	 	 	 	
 	 	Mobile Telescopic Cranes	 	Liebherr; Link-Belt; Terex; Tadano; XCMG; Kato; Locatelli; Marchetti; Luna; Broderson; Valla; Ormig; Bencini; Sany; and Zoomlion	
 	 	 	 	 	
 	 	Boom Trucks	 	Terex; Manitex; Altec; Elliott; Tadano; Fassi; Palfinger; Furukawa; and Hiab	
 	 	 	 	 	
Foodservice Equipment	 	Ice-Cube Machines, Ice Flaker Machines and Storage Bins	 	Hoshizaki; Scotsman; Follet; Ice-O-Matic; Brema; Aucma; and Vogt	
 	 	 	 	 	
 	 	Beverage Dispensers and Related Products	 	Automatic Bar Controls; Celli; Cornelius; Hoshizaki/Lancer Corporation; Taylor; and Vin Service	
 	 	 	 	 	
 	 	Refrigerator and Freezer Equipment	 	American Panel; ICS; Nor-Lake; Master-Bilt; Thermo-Kool; Bally; Arctic; Beverage Air; Traulsen; True Foodservice; TurboAir; Masterbilt; and Hoshizaki	
 	 	 	 	 	
 	 	Primary Cooking Equipment	 	Ali Group; Electrolux; Dover Industries; Duke; Henny Penny; ITW; Middleby; Rational; and Taylor	
 	 	 	 	 	
 	 	Serving, Warming and Storage Equipment	 	Alto Shaam; Cambro; Duke; Hatco; ITW; Middleby; Standex; and Vollrath	
 	 	 	 	 	
 	 	Food Preparation Equipment	 	Ali Group; Bizerba; Electrolux; German Knife; Globe; ITW; and Univex	

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Engineering, Research and Development
We believe our extensive engineering, research and development capabilities have been key drivers of our success. We engage in research and development activities at dedicated locations within both of our segments. We have a staff of in-house engineers and technicians on three continents, supplemented with external engineering resources, who are responsible for improving existing products and developing new products. We incurred research and development costs of $87.7 million in 2012 , $80.6 million in 2011 and $72.2 million in 2010 .
Our team of engineers focuses on developing innovative, high performance, low maintenance products that are intended to create significant brand loyalty among customers. Design engineers work closely with our manufacturing and marketing staff, enabling us to identify changing end-user requirements, implement new technologies and effectively introduce product innovations. Close, carefully managed relationships with dealers, distributors and end users help us identify their needs, not only for products, but for the service and support that are critical to their profitable operations. As part of our ongoing commitment to provide superior products, we intend to continue our efforts to design products that meet evolving customer demands and reduce the period from product conception to product introduction.
Employee Relations
As of December 31, 2012 , we employed approximately 13,500 people and had labor agreements with 13 union locals in North America. A large majority of our European employees belong to European trade unions. We have three trade unions in China and one trade union in India.  During 2010, we had two union contracts that expired and were successfully renegotiated. During 2011, four of our union contracts expired at various times.  Three of the contracts that expired in 2011 were successfully renegotiated without incident, while the International Association of Machinists (IAM) contract with Manitowoc Crane Corporation expired in October 2011 and resulted in a 66-day work stoppage.  The company’s contingency plans ensured that customer needs were met during the work stoppage.  A new contract with the IAM was ratified in January 2012 and expires in January 2016.  During 2012, we successfully negotiated three labor contracts without incident.
Available Information
We make available, free of charge at our internet site (www.manitowoc.com), our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, our proxy statements and any amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (SEC). Our SEC reports can be accessed through the investor relations section of our website. Although some documents available on our website are filed with the SEC, the information generally found on our website is not part of this or any other report we file with or furnish to the SEC.
The public may read and copy any materials that we file with the SEC at the SEC’s Public Reference Room located at 100 F Street NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains electronic versions of our reports on its website at www.sec.gov.
Geographic Areas
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, goodwill, other intangible assets, net and other non-current assets, excluding deferred tax assets.

																				
 	Net Sales	 	Long-Lived Assets	
(in millions)	2012	 	2011	 	2010	 	2012	 	2011	
United States	$	1,833.0		 	$	1,588.8		 	$	1,335.2		 	$	1,905.4		 	$	1,964.7		
Other North America	278.2		 	208.8		 	139.0		 	5.3		 	6.0		
Europe	788.0		 	813.4		 	749.2		 	510.6		 	511.5		
Asia	367.7		 	382.1		 	306.2		 	213.0		 	225.1		
Middle East	161.6		 	189.4		 	168.7		 	1.6		 	1.7		
Central and South America	243.0		 	237.8		 	203.0		 	33.3		 	15.5		
Africa	110.8		 	65.4		 	69.5		 	—		 	—		
South Pacific and Caribbean	10.6		 	12.0		 	11.5		 	4.6		 	4.8		
Australia	134.1		 	121.5		 	129.2		 	4.4		 	4.2		
Total	$	3,927.0		 	$	3,619.2		 	$	3,111.5		 	$	2,678.2		 	$	2,733.5		

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Item 1A. RISK FACTORS
The following are risk factors identified by management that if any events contemplated by the following risks actually occur, then our business, financial condition or results of operations could be materially adversely affected. 
Some of our business segments are cyclical or are otherwise sensitive to volatile or variable factors. A downturn or weakness in overall economic activity or fluctuations in those other factors can have a material adverse effect on us.

Historically, sales of products that we manufacture and sell have been subject to cyclical variations caused by changes in general economic conditions and other factors. In particular, the demand for our Crane products is cyclical and is impacted by the strength of the economy generally, the availability of financing and other factors that may have an effect on the level of construction activity on an international, national or regional basis. During periods of expansion in construction activity, we generally have benefited from increased demand for our products. Conversely, during recessionary periods, such as the recent global economic recession, we have been adversely affected by reduced demand for our products. In addition, the strength of the economy generally may affect the rates of expansion, consolidation, renovation and equipment replacement within the restaurant, lodging, convenience store and healthcare industries, which may affect the performance of our Foodservice segment. Furthermore, an economic recession may impact leveraged companies, such as Manitowoc, more than competing companies with less leverage and may have a material adverse effect on our financial condition, results of operations and cash flows.

Products in our Crane segment also depend in part on federal, state, local and foreign governmental spending and appropriations, including infrastructure, security and defense outlays. Reductions in governmental spending can reduce demand for our products, which in turn can affect our performance. Weather conditions can substantially affect our Foodservice segment, as relatively cool summer weather and cooler-than-normal weather in hot climates tend to decrease sales of ice and beverage dispensers. Our sales depend in part upon our customers' replacement or repair cycles. Adverse economic conditions may cause customers to forego or postpone new purchases in favor of repairing existing machinery.

Because we participate in industries that are intensely competitive, our net sales and profits could decline as we respond to competition.

We sell most of our products in highly competitive industries. We compete in each of those industries based on product design, quality of products, quality and responsiveness of product support services, product performance, maintenance costs and price. Some of our competitors may have greater financial, marketing, manufacturing and distribution resources than we do. We cannot be certain that our products and services will continue to compete successfully with those of our competitors or that we will be able to retain our customer base or improve or maintain our profit margins on sales to our customers, any of which could materially and adversely affect our financial condition, results of operations and cash flows.

If we fail to develop new and innovative products or if customers in our markets do not accept them, our results would be negatively affected.

Our products must be kept current to meet our customers' needs. To remain competitive, we therefore must develop new and innovative products on an on-going basis. If we fail to make innovations, or the market does not accept our new products, our sales and results would suffer.

We invest significantly in the research and development of new products. These expenditures do not always result in products that will be accepted by the market. To the extent they do not, whether as a function of the product or the business cycle, we will have increased expenses without significant sales to benefit us. Failure to develop successful new products may also cause potential customers to choose to purchase used equipment, or competitors' products, rather than invest in new products manufactured by us.

Price increases in some materials and sources of supply could affect our profitability.

We use large amounts of steel, stainless steel, aluminum, copper and electronic controls, among other items, in the manufacture of our products. Occasionally, market prices of some of our key raw materials increase significantly. If in the future we are not able to reduce product cost in other areas or pass raw material price increases on to our customers, our margins could be adversely affected. In addition, because we maintain limited raw material and component inventories, even brief unanticipated delays in delivery by suppliers-including those due to capacity constraints, labor disputes, impaired financial condition of suppliers, weather emergencies or other natural disasters-may impair our ability to satisfy our customers and could adversely

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affect our financial performance.

To better manage our exposures to certain commodity price fluctuations, we regularly hedge our commodity exposures through financial markets. Through this hedging program we fix the future price for a portion of these commodities utilized in the production of our products. To the extent that our hedging is not successful in fixing commodity prices that are favorable in comparison to market prices at the time of purchase, we would experience a negative impact on our profit margins compared to the margins we would have realized if these price commitments were not in place, which may adversely affect our results of operations, financial condition and cash flows in future periods.

We increasingly manufacture and sell our products outside of the United States, which may present additional risks to our business.

For the years ended December 31, 2012 , 2011 and 2010 , approximately 53%, 56% and 57%, respectively, of our net sales were attributable to products sold outside of the United States. Expanding the company's international sales is part of our growth strategy. International operations generally are subject to various risks, including political, military, religious and economic instability, local labor market conditions, the imposition of foreign tariffs, the impact of foreign government regulations, the effects of income and withholding tax, governmental expropriation, and differences in business practices. We may incur increased costs and experience delays or disruptions in product deliveries and payments in connection with our international sales, manufacturing and the integration of new facilities that could cause loss of revenue or increased cost. Unfavorable changes in the political, regulatory and business climate and currency devaluations of various foreign jurisdictions could have a material adverse effect on our financial condition, results of operations and cash flows.

We depend on our key personnel and the loss of these personnel could have an adverse effect on our business.

Our success depends to a large extent upon the continued services of our key executives, managers and skilled personnel. Generally, these employees are not bound by employment or non-competition agreements, and we cannot be sure that we will be able to retain our key officers and employees. We could be seriously harmed by the loss of key personnel if it were to occur in the future.

Our operations and profitability could suffer if we experience problems with labor relations.
As of December 31, 2012 , we employed approximately 13,500 people and had labor agreements with 13 union locals in North America. A large majority of our European employees belong to European trade unions. We have three trade unions in China and one trade union in India.  During 2010, we had two union contracts that expired and were successfully renegotiated. During 2011, four of our union contracts expired at various times.  Three of the contracts that expired in 2011 were successfully renegotiated without incident, while the International Association of Machinists (IAM) contract with Manitowoc Cranes, LLC expired in October 2011 and resulted in a 66-day work stoppage.  The company’s contingency plans ensured that customer needs were met during the work stoppage.  A new contract with the IAM was ratified in January 2012 and expires in January 2016.  During 2012, we successfully negotiated three labor contracts without incident. Any significant labor relations issues could have a material adverse effect on our results of operations and financial condition.
If we fail to protect our intellectual property rights or maintain our rights to use licensed intellectual property, our business could be adversely affected.

Our patents, trademarks and licenses are important in the operation of our businesses. Although we intend to protect our intellectual property rights vigorously, we cannot be certain that we will be successful in doing so. Third parties may assert or prosecute infringement claims against us in connection with the services and products that we offer, and we may or may not be able to successfully defend these claims. Litigation, either to enforce our intellectual property rights or to defend against claimed infringement of the rights of others, could result in substantial costs and in a diversion of our resources. In addition, if a third party would prevail in an infringement claim against us, then we would likely need to obtain a license from the third party on commercial terms, which would likely increase our costs. Our failure to maintain or obtain necessary licenses or an adverse outcome in any litigation relating to patent infringement or other intellectual property matters could have a material adverse effect on our financial condition, results of operations and cash flows.

Our results of operations may be negatively impacted by product liability lawsuits.

Our business exposes us to potential product liability risks that are inherent in the design, manufacture, sale and use of our products, especially our crane products. Certain of our businesses also have experienced claims relating to past asbestos exposure. Neither we nor our affiliates have to date incurred material costs related to these asbestos claims. We vigorously

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defend ourselves against current claims and intend to do so against future claims. However, a substantial increase in the number of claims that are made against us or the amounts of any judgments or settlements could materially and adversely affect our reputation and our financial condition, results of operations and cash flows.

Strategic divestitures could negatively affect our results.

We regularly review our business units and evaluate them against our core business strategies. In addition to strategic divestiture decisions, at times we may be required by regulatory authorities to make business divestitures as a result of acquisition transactions. As a result, we regularly consider the divestiture of non-core and non-strategic, or acquisition-related operations or facilities. Depending upon the circumstances and terms, the divestiture of an operation or facility could negatively affect our earnings from continuing operations.

Environmental liabilities that may arise in the future could be material to us.

Our operations, facilities and properties are subject to extensive and evolving laws and regulations pertaining to air emissions, wastewater discharges, the handling and disposal of solid and hazardous materials and wastes, the remediation of contamination, and otherwise relating to health, safety and the protection of the environment. As a result, we are involved from time to time in administrative or legal proceedings relating to environmental and health and safety matters, and have in the past and will continue to incur capital costs and other expenditures relating to such matters.

Based on current information, we believe that any costs we may incur relating to environmental matters will not be material, although we can give no assurances. We also cannot be certain that identification of presently unidentified environmental conditions, more vigorous enforcement by regulatory authorities, or other unanticipated events will not arise in the future and give rise to additional environmental liabilities, compliance costs and/or penalties that could be material. Further, environmental laws and regulations are constantly evolving and it is impossible to predict accurately the effect they may have upon our financial condition, results of operations or cash flows.

We are exposed to the risk of foreign currency fluctuations.

Some of our operations are or will be conducted by subsidiaries in foreign countries. The results of the operations and the financial position of these subsidiaries will be reported in the relevant foreign currencies and then translated into U.S. dollars at the applicable exchange rates for inclusion in our consolidated financial statements, which are stated in U.S. dollars. The exchange rates between many of these currencies and the U.S. dollar have fluctuated significantly in recent years and may fluctuate significantly in the future. Such fluctuations may have a material effect on our results of operations and financial position and may significantly affect the comparability of our results between financial periods.

In addition, we incur currency transaction risk whenever one of our operating subsidiaries enters into a transaction using a different currency than its functional currency. We attempt to reduce currency transaction risk whenever one of our operating subsidiaries enters into a material transaction using a different currency than its functional currency by:
• matching cash flows and payments in the same currency;
• direct foreign currency borrowing; and
• entering into foreign exchange contracts for hedging purposes.

However, we may not be able to hedge this risk completely or at an acceptable cost, which may adversely affect our results of operations, financial condition and cash flows in future periods.

Increased or unexpected product warranty claims could adversely affect us.

We provide our customers a warranty covering workmanship, and in some cases materials, on products we manufacture. Our warranty generally provides that products will be free from defects for periods ranging from 12 months to 60 months with certain equipment having longer term warranties. If a product fails to comply with the warranty, we may be obligated, at our expense, to correct any defect by repairing or replacing the defective product. Although we maintain warranty reserves in an amount based primarily on the number of units shipped and on historical and anticipated warranty claims, there can be no assurance that future warranty claims will follow historical patterns or that we can accurately anticipate the level of future warranty claims. An increase in the rate of warranty claims or the occurrence of unexpected warranty claims could materially and adversely affect our financial condition, results of operations and cash flows.

Some of our customers rely on financing with third parties to purchase our products, and we may incur expenses associated with our assistance to customers in securing third party financing.

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A portion of our sales is financed by third-party finance companies on behalf of our customers. The availability of financing by third parties is affected by general economic conditions, the credit worthiness of our customers and the estimated residual value of our equipment. In certain transactions we provide residual value guarantees and buyback commitments to our customers or the third-party financial institutions. Deterioration in the credit quality of our customers or the overall health of the banking industry could negatively impact our customer's ability to obtain the resources needed to make purchases of our equipment or their ability to obtain third-party financing. In addition, if the actual value of the equipment for which we have provided a residual value guaranty declines below the amount of our guaranty, we may incur additional costs, which may negatively impact our financial condition, results of operations and cash flows.

Our leverage may impair our operations and financial condition.

As of December 31, 2012 , our total consolidated debt was $1,824.8 million as compared to consolidated debt of $1,890.0 million as of December 31, 2011 , including the value of related interest rate hedging instruments. Our debt could have important consequences, including increasing our vulnerability to general adverse economic and industry conditions; requiring a substantial portion of our cash flows from operations be used for the payment of interest rather than to fund working capital, capital expenditures, acquisitions and general corporate requirements; limiting our ability to obtain additional financing; and limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate.

The agreements governing our debt include covenants that restrict, among other matters, our ability to incur additional debt; pay dividends on or repurchase our equity; make investments; and consolidate, merge or transfer all or substantially all of our assets. In addition, our Senior Credit Facility requires us to maintain specified financial ratios and satisfy certain financial condition tests. Our ability to comply with these covenants may be affected by events beyond our control, including prevailing economic, financial and industry conditions. These covenants may also require that we take action to reduce our debt or to act in a manner contrary to our business objectives. We cannot be certain that we will meet any future financial tests or that the lenders will waive any failure to meet those tests. See additional discussion in Note 11, "Debt," to our Consolidated Financial Statements.

If we default under our debt agreements, our lenders could elect to declare all amounts outstanding under our debt agreements to be immediately due and payable and could proceed against any collateral securing the debt. Under those circumstances, in the absence of readily-available refinancing on favorable terms, we might elect or be compelled to enter bankruptcy proceedings, in which case our shareholders could lose the entire value of their investment in our common stock.

An inability to successfully manage the implementation of a global enterprise resource management (ERP) system in our Crane segment could adversely affect our operating results.

We are in the process of implementing a new global ERP system in the Crane segment. This system will replace many of our existing operating and financial systems. Such an implementation is a major undertaking both financially and from a management and personnel perspective. Should the system not be implemented successfully and within budget, or if the system does not perform in a satisfactory manner, it could be disruptive and adversely affect our operations and results of operations, including the ability of the company to report accurate and timely financial results.

Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.

In the ordinary course of our business, we collect and store sensitive data, including our proprietary business information and that of our customers, suppliers and business partners, as well as personally identifiable information of our customers and employees, in our data centers and on our networks. The secure processing, maintenance and transmission of this information is critical to our operations and business strategy. Despite our security measures, our information technology and infrastructure may be vulnerable to malicious attacks or breached due to employee error, malfeasance or other disruptions, including as a result of rollouts of new systems. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings and/or regulatory penalties, disrupt our operations, damage our reputation, and/or cause a loss of confidence in our products and services, which could adversely affect our business.

Our inability to recover from natural or man-made disasters could adversely affect our business.

Our business and financial results may be affected by certain events that we cannot anticipate or that are beyond our control, such as natural or man-made disasters, national emergencies, significant labor strikes, work stoppages, political unrest, war or

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terrorist activities that could curtail production at our facilities and cause delayed deliveries and canceled orders. In addition, we purchase components and raw materials and information technology and other services from numerous suppliers, and, even if our facilities were not directly affected by such events, we could be affected by interruptions at such suppliers. Such suppliers may be less likely than our own facilities to be able to quickly recover from such events and may be subject to additional risks such as financial problems that limit their ability to conduct their operations. We cannot assure you that we will have insurance to adequately compensate us for any of these events.

Our income tax returns are subject to review by taxing authorities, and the final determination of our tax liability with respect to tax audits and any related litigation could adversely affect our financial results.

Although we believe that our tax estimates are reasonable and that we prepare our tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audits, and any related litigation, could be materially different from our estimates or from our historical income tax provisions and accruals. The results of an audit or litigation 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. We are undergoing tax audits in various jurisdictions and we regularly assess the likelihood of an adverse outcome resulting from such examinations to determine the adequacy of our tax reserves. In September 2012, we received an examination report from the Internal Revenue Service covering the 2008 and 2009 tax years. The report includes the proposed disallowance of the deductibility of a $380.9 million foreign currency loss that was incurred in 2008. We filed a formal protest to the proposed adjustment during the fourth quarter of 2012. We plan to pursue all administrative and, if necessary, judicial remedies with respect to resolving this matter. However, there can be no assurance that this matter will be resolved in our favor.

Our international sales and operations are subject to applicable laws relating to trade, export controls and foreign corrupt practices, the violation of which could adversely affect our operations.

We must comply with all applicable international trade, customs, export controls and economic sanctions laws and regulations of the United States and other countries.  We are also subject to the Foreign Corrupt Practices Act and other anti-bribery laws that generally bar bribes or unreasonable gifts to foreign governments or officials.  Changes in trade sanctions laws may restrict our business practices, including cessation of business activities in sanctioned countries or with sanctioned entities, and may result in modifications to compliance programs.  Violation of these laws or regulations could result in sanctions or fines and could have a material adverse effect on our financial condition, results of operations and cash flows.

New regulations related to conflict minerals may force us to incur additional expenses and affect the manufacturing and sale of our products.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), signed into law on July 21, 2010, includes Section 1502, which requires the Securities and Exchange Commission (“SEC”) to adopt additional disclosure requirements related to certain minerals sourced from the Democratic Republic of Congo and surrounding countries, or “conflict minerals”, for which such conflict minerals are necessary to the functionality of a product manufactured, or contracted to be manufactured, by an SEC reporting company.  The metals covered by the final rules, adopted on August 22, 2012, are commonly referred to as “3TG” and include tin, tantalum, tungsten and gold.  Implementation of the new disclosure requirements could affect the sourcing and availability of some of the minerals used in the manufacture of our products.  Our supply chain is complex, and if we are not able to conclusively verify the origins for all conflict minerals used in our products or that our products are “conflict free,” we may face reputational challenges with our customers or investors.  Furthermore, we may also encounter challenges to satisfy customers who require that our products be certified as "conflict free," which could place us at a competitive disadvantage if we are unable to do so. Additionally, as there may be only a limited number of suppliers offering “conflict free” metals, we cannot be sure that we will be able to obtain necessary metals from such suppliers in sufficient quantities or at competitive prices.  While these rules are currently the subject of a legal challenge, we could incur significant costs related to the compliance process, including potential difficulty or added costs in satisfying the disclosure requirements.
Item 1B.  UNRESOLVED STAFF COMMENTS
The company has received no written comments regarding its periodic or current reports from the staff of the Securities and Exchange Commission (SEC) that were issued 180 days or more preceding the end of our fiscal year 2012 that remain unresolved.

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Item 2.  PROPERTIES
The following table outlines the principal facilities we own or lease as of December 31, 2012 .

							
Facility Location	 	Type of Facility	 	Approximate
Square Footage	 	Owned/Leased	
Cranes and Related Products	 	 	 	 	 	 	
Europe/Asia/Middle East	 	 	 	 	 	 	
Wilhelmshaven, Germany	 	Manufacturing/Office and Storage	 	410,000	 	Owned/Leased	
Moulins, France	 	Manufacturing/Office	 	355,000	 	Owned/Leased	
Charlieu, France	 	Manufacturing/Office	 	323,000	 	Owned/Leased	
Presov, Slovak Republic	 	Manufacturing/Office	 	295,300	 	Owned	
Zhangjiagang, China	 	Manufacturing	 	800,000	 	Owned	
Fanzeres, Portugal	 	Manufacturing	 	183,000	 	Owned/Leased	
Baltar, Portugal	 	Manufacturing	 	68,900	 	Owned	
Pune, India	 	Manufacturing	 	190,000	 	Leased	
Niella Tanaro, Italy	 	Manufacturing	 	370,016	 	Owned	
Ecully, France	 	Office	 	85,000	 	Leased	
Langenfeld, Germany	 	Office/Storage and Field Testing	 	80,300	 	Leased	
Osny, France	 	Office/Storage/Repair	 	43,000	 	Owned	
Decines, France	 	Office/Storage	 	47,500	 	Leased	
Vaux-en-Velin, France	 	Office/Workshop	 	17,000	 	Owned	
Vitrolles, France	 	Office	 	16,000	 	Owned	
Buckingham, United Kingdom	 	Office/Storage	 	78,000	 	Leased	
Lusigny, France	 	Crane Testing Site	 	10,000	 	Owned	
Baudemont, France	 	Office & Training Center	 	8,000	 	Owned	
Singapore	 	Office/Storage	 	49,000	 	Leased	
Tai’an, China (Joint Venture)	 	Manufacturing	 	571,000	 	Owned	
Sydney, Australia	 	Office/Storage	 	21,500	 	Leased	
Dubai, United Arab Emirates	 	Office/Workshop	 	10,000	 	Leased	
Americas	 	 	 	 	 	 	
Shady Grove, Pennsylvania	 	Manufacturing/Office	 	1,286,000	 	Owned	
Manitowoc, Wisconsin	 	Manufacturing/Office	 	570,000	 	Owned	
Manitowoc, Wisconsin	 	Office	 	10,000	 	Leased	
Manitowoc, Wisconsin	 	Land	 	250,200	 	Leased	
Passo Fundo, Brazil	 	Manufacturing/Office	 	265,000	 	Owned	
Quincy, Pennsylvania	 	Manufacturing	 	36,000	 	Owned	
Bauxite, Arkansas	 	Manufacturing/Office	 	22,000	 	Owned	
Port Washington, Wisconsin	 	Manufacturing	 	81,000	 	Owned	

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Foodservice Equipment

							
Europe/Asia	 	 	 	 	 	 	
Hangzhou, China	 	Manufacturing/Office	 	260,000	 	Owned/Leased	
Eglfing, Germany	 	Manufacturing/Office/Warehouse	 	130,000	 	Leased	
Halesowen, United Kingdom(1)	 	Manufacturing/Office	 	86,000	 	Leased	
Sheffield, United Kingdom	 	Manufacturing/Office	 	100,000	 	Leased	
Guildford, United Kingdom	 	Office	 	12,500	 	Leased	
Shanghai, China	 	Office/Warehouse	 	28,933	 	Leased	
Foshan, China	 	Manufacturing/Office/Warehouse	 	40,000	 	Leased	
Singapore (1)	 	Manufacturing/Office/Warehouse	 	45,335	 	Leased	
Prachinburi, Thailand (Joint Venture)	 	Manufacturing/Office/Warehouse	 	80,520	 	Owned	
Samutprakarn, Thailand (Joint Venture)	 	Office	 	4,305	 	Leased	
North America	 	 	 	 	 	 	
Manitowoc, Wisconsin	 	Manufacturing/Office	 	376,000	 	Owned	
Parsons, Tennessee (1)	 	Manufacturing	 	120,000	 	Owned	
Sellersburg, Indiana	 	Manufacturing/Office	 	146,000	 	Owned	
La Mirada, California	 	Manufacturing/Office	 	15,000	 	Leased	
Los Angeles, California	 	Manufacturing/Office	 	90,000	 	Leased	
Tijuana, Mexico (1)	 	Manufacturing	 	111,000	 	Leased	
New Port Richey, Florida	 	Office/Technology Center	 	42,000	 	Owned	
Goodyear, Arizona	 	Manufacturing/Office	 	75,000	 	Leased	
Fort Wayne, Indiana	 	Manufacturing/Office	 	413,000	 	Owned	
Barbourville, Kentucky (2)	 	Manufacturing/Office	 	115,000	 	Owned	
Shreveport, Louisiana (1)	 	Manufacturing/Office	 	435,000	 	Owned	
Mt. Pleasant, Michigan	 	Manufacturing/Office	 	345,000	 	Owned	
Baltimore, Maryland	 	Manufacturing/Office	 	16,000	 	Owned	
Cleveland, Ohio	 	Manufacturing/Office	 	224,000	 	Owned	
Freeland, Pennsylvania	 	Manufacturing/Office	 	160,000	 	Owned	
Covington, Tennessee	 	Manufacturing/Office	 	186,000	 	Owned	
Piney Flats, Tennessee	 	Manufacturing/Office	 	131,000	 	Leased	
Fort Worth, Texas	 	Manufacturing/Office	 	182,000	 	Leased	
Concord, Ontario, Canada	 	Manufacturing/Office	 	116,000	 	Leased	
Mississauga, Ontario, Canada	 	Manufacturing/Office	 	155,000	 	Leased	
Corporate	 	 	 	 	 	 	
Manitowoc, Wisconsin	 	Office	 	34,000	 	Owned	
Manitowoc, Wisconsin	 	Office	 	5,000	 	Leased	
Manitowoc, Wisconsin	 	Hangar Ground Lease	 	31,320	 	Leased	
 
(1)    There are multiple separate facilities within these locations.
(2)    This location was divested with the Jackson business in January 2013.

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In addition, we lease sales office and warehouse space for our Crane segment in Breda, The Netherlands; Begles, France; Nantes, France; Toulouse, France; Nice, France; Orleans, France; Persans, France; Lainate, Italy; Lagenfeld, Germany; Munich, Germany; Budapest, Hungary; Warsaw, Poland; Melbourne, Australia; Brisbane, Australia; Beijing, China; Chengdu, China; Guangzhou, China; Xi’an, China; Dubai, UAE; Makati City, Philippines; Cavite, Philippines; Gurgaon, India; Chennai, India; Hyderabad, India; Seoul, Korea; Moscow, Russia; Netvorice, the Czech Republic; Jeffersonville, Indiana; Manitowoc, Wisconsin; Shanghai, China; Monterrey, Mexico; Sao Paulo, Brazil; Recife, Brazil; Santiago, Chile; Johannesburg, South Africa; Ellis Ras, South Africa; Rio de Janeiro, Brazil; and Vitoria, Brazil. We lease office and warehouse space for our Foodservice segment in Salem, Virginia; Irwindale, California; Goodyear, Arizona; Miami, Florida; Herborn, Germany; Moscow, Russia; Belgium, Netherlands; Kuala Lumpur, Malaysia; Barcelona, Spain; and Naucalpan de Juarez, Mexico.  We also own sales offices for our Crane segment in Dole, France.
See Note 21, “Leases,” to the Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K for additional information regarding leases.
Item 3.  LEGAL PROCEEDINGS
Our global operations are governed by laws addressing the protection of the environment and employee safety and health.  Under various circumstances, these laws impose civil and criminal penalties and fines, as well as injunctive and remedial relief, for noncompliance.  They also may require remediation at sites where company related substances have been released into the environment.
We have expended substantial resources globally, both financial and managerial, to comply with the applicable laws and regulations, and to protect the environment and our workers.  We believe we are in substantial compliance with such laws and regulations and we maintain procedures designed to foster and ensure compliance.  However, we have been and may in the future be subject to formal or informal enforcement actions or proceedings regarding noncompliance with such laws or regulations, whether or not determined to be ultimately responsible in the normal course of business.  Historically, these actions have been resolved in various ways with the regulatory authorities without material commitments or penalties to the company.
For information concerning other contingencies and uncertainties, see Note 17, “Contingencies and Significant Estimates,” to the Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K, as well as Note 13, "Income Taxes," related to a matter involving the Company's tax return for 2008.
Executive Officers of the Registrant
Each of the following officers of the company has been elected by the Board of Directors.  The information presented is as of February 28, 2013 .

							
Name	 	Age	 	Position With The Registrant	 	Principal
Position Held
Since	
Glen E. Tellock	 	52	 	Chairman and Chief Executive Officer	 	2009	
 	 	 	 	 	 	 	
Carl J. Laurino	 	51	 	Senior Vice President and Chief Financial Officer	 	2004	
 	 	 	 	 	 	 	
Thomas G. Musial	 	61	 	Senior Vice President of Human Resources and Administration	 	2000	
 	 	 	 	 	 	 	
Maurice D. Jones	 	53	 	Senior Vice President, General Counsel and Secretary	 	2004	
 	 	 	 	 	 	 	
Dean J. Nolden	 	44	 	Vice President of Finance and Treasurer	 	2005	
 	 	 	 	 	 	 	
Eric P. Etchart	 	56	 	Senior Vice President of the Company and President Crane Segment	 	2007	
 	 	 	 	 	 	 	
Michael J. Kachmer	 	54	 	Senior Vice President of the Company and President Foodservice Segment	 	2007	
Glen E. Tellock has been the company’s chief executive officer since May 2007 and was elected as chairman of the board effective February 13, 2009.  He previously served as the senior vice president of The Manitowoc Company, Inc. and president of the Crane segment since 2002.  Earlier, he served as the company’s senior vice president and chief financial officer (1999),

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vice president of finance and treasurer (1998), corporate controller (1992) and director of accounting (1991).  Prior to joining the company, Mr. Tellock served as financial planning manager with the Denver Post Corporation, and as an audit manager for Ernst & Whinney.
Carl J. Laurino was named senior vice president and chief financial officer in May 2004.  He had served as treasurer since May 2001.  Mr. Laurino joined the company in January 2000 as assistant treasurer and served in that capacity until his promotion to treasurer.  Previously, Mr. Laurino spent 15 years in the commercial banking industry with Firstar Bank (n/k/a US Bank), Norwest Bank (n/k/a Wells Fargo), and Associated Bank.  During that period, Mr. Laurino held numerous positions of increasing responsibility including commercial loan officer with Norwest Bank, Vice President - Business Banking with Associated Bank and Vice President and Commercial Banking Manager with Firstar.
Thomas G. Musial has been senior vice president of human resources and administration since 2000.  Previously, he was vice president of human resources and administration (1995), manager of human resources (1987), and personnel/industrial relations specialist (1976).
Maurice D. Jones has been general counsel and secretary since 1999 and was elected vice president in 2002 and a senior vice president in 2004.  Prior to joining the company, Mr. Jones was a shareholder in the law firm of Davis and Kuelthau, S.C., and served as legal counsel for Banta Corporation.
Dean J. Nolden was named vice president of finance and treasurer in May 2009.  He previously served as the vice president and assistant treasurer since 2005.  Mr. Nolden joined the company in November 1998 as corporate controller and served in that capacity until his promotion to Vice President Finance and Controller in May 2004.  Prior to joining the company, Mr. Nolden spent eight years in public accounting in the audit practice of PricewaterhouseCoopers LLP.  He left that firm in 1998 as an audit manager.
Eric P. Etchart was named senior vice president of The Manitowoc Company, Inc. and president of the Manitowoc Crane segment in May 2007.  Mr. Etchart previously served as executive vice president of the Crane segment for the Asia/Pacific region since 2002.  Prior to joining the company, Mr. Etchart served as managing director in the Asia/Pacific region for Potain S.A., as managing director in Italy for Potain S.P.A. and as vice president of international sales and marketing for PPM.
Michael J. Kachmer joined the company in February of 2007 as senior vice president of The Manitowoc Company, Inc. and president of the Foodservice segment.  Prior to joining the company, Mr. Kachmer held executive positions for Culligan International Company since 2000, most recently serving as its chief operating officer.  In addition, Mr. Kachmer has held executive and operational roles in a number of global manufacturing companies, including Ball Corporation and Firestone Tire & Rubber. 
Item 4.  MINE SAFETY DISCLOSURE
Not Applicable.

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PART II
Item 5.  MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
The company’s common stock is traded on the New York Stock Exchange under the symbol MTW.  At December 31, 2012 , the approximate number of record shareholders of common stock was 2,307.
The amount and timing of the annual dividend are determined by the Board of Directors at its regular meetings each year, subject to limitations within the company’s Senior Credit Facility described below.  In each of the years ended December 31, 2012 , December 31, 2011 and December 31, 2010 , the company paid an annual dividend of $0.08 per share in the fourth quarter. 
The high and low sales prices of the common stock were as follows for 2012 , 2011 and 2010 : 

																																				
Year Ended	2012	 	2011	 	2010	
December 31	High	 	Low	 	Close	 	High	 	Low	 	Close	 	High	 	Low	 	Close	
1st Quarter	$	16.97		 	$	9.45		 	$	13.86		 	$	22.12		 	$	12.80		 	$	21.88		 	$	14.60		 	$	10.03		 	$	13.00		
2nd Quarter	15.11		 	9.60		 	11.70		 	23.23		 	14.79		 	16.84		 	16.43		 	9.09		 	9.14		
3rd Quarter	15.44		 	9.90		 	13.34		 	18.19		 	6.56		 	6.71		 	12.26		 	8.48		 	12.11		
4th Quarter	16.03		 	12.82		 	15.68		 	12.60		 	5.76		 	9.19		 	13.53		 	10.55		 	13.11		
Under our Senior Credit Facility, we are limited on the amount of dividends we may pay out in any one year.  The amount of dividend payments is restricted based on our consolidated total leverage ratio as defined in the credit agreement and is limited along with other restricted payments in aggregate.  If the consolidated total leverage ratio is less than 3.00 to 1.00, total restricted payments are not limited in any given year.  If the consolidated total leverage ratio is less than 4.00 to 1.00 but greater than or equal to 3.00 to 1.00, restricted payments may not exceed $40.0 million per year.  If the consolidated total leverage ratio is less than 5.00 to 1.00 but greater than or equal to 4.00 to 1.00, restricted payments may not exceed $30.0 million per year.  Lastly, if the consolidated total leverage ratio is greater than or equal to 5.00 to 1.00, total restricted payments are limited to $20.0 million per year.

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Total Return to Shareholders
(Includes reinvestment of dividends)

															
 	Annual Return Percentages	
 	Years Ending December 31,	
 	2008	 	2009	 	2010	 	2011	 	2012	
The Manitowoc Company, Inc.	(82.19	)%	 	16.77	%	 	32.30	%	 	(29.39	)%	 	71.53	%	
S&P 500 Index	(37.00	)%	 	26.46	%	 	15.06	%	 	2.11	 %	 	16.00	%	
S&P 600 Industrial Machinery	(32.86	)%	 	18.68	%	 	31.01	%	 	(2.67	)%	 	20.56	%	

	
																		
 	Indexed Returns	
 	Years Ending December 31,	
 	2007	 	2008	 	2009	 	2010	 	2011	 	2012	
The Manitowoc Company, Inc.	100.00		 	17.81		 	20.80		 	27.52		 	19.43		 	33.33		
S&P 500 Index	100.00		 	63.00		 	79.67		 	91.68		 	93.61		 	108.59		
S&P 600 Industrial Machinery	100.00		 	67.14		 	79.68		 	104.38		 	101.59		 	122.48		

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Item 6.  SELECTED FINANCIAL DATA
The following selected historical financial data have been derived from the Consolidated Financial Statements of The Manitowoc Company, Inc. The data should be read in conjunction with these financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Results of the Jackson business, the Kysor/Warren business, substantially all Enodis ice businesses and certain Enodis non-ice businesses, and the Marine segment in the years presented have been classified as discontinued operations to exclude those results from continuing operations. In addition, the earnings (loss) from discontinued operations include the impact of adjustments to certain retained liabilities for operations sold or closed in periods prior to those presented. Financial data for the years prior to 2012 have been revised to correct errors identified in 2012 relating to these periods. See Note 1, "Company and Basis of Presentation," in the Consolidated Financial Statements for further discussion of these revisions. For businesses acquired during the time periods presented, results are included in the table from their acquisition date. Amounts are in millions except share and per share data.

																				
 	2012	 	2011	 	2010	 	2009	 	2008	
Net Sales	 		 	 		 	 		 	 		 	 		
Cranes and Related Products	$	2,440.8		 	$	2,164.6		 	$	1,748.6		 	$	2,285.0		 	$	3,882.9		
Foodservice Equipment	1,486.2		 	1,454.6		 	1,362.9		 	1,302.9		 	589.7		
Total	3,927.0		 	3,619.2		 	3,111.5		 	3,587.9		 	4,472.6		
Gross Profit	934.4		 	826.7		 	759.5		 	788.6		 	1,013.9		
Earnings (Loss) from Operations	 		 	 		 	 		 	 		 	 		
Cranes and Related Products	156.0		 	108.2		 	90.6		 	146.7		 	556.7		
Foodservice Equipment	238.6		 	214.4		 	201.9		 	164.1		 	59.0		
Corporate	(63.7	)	 	(61.3	)	 	(42.0	)	 	(46.1	)	 	(52.8	)	
Amortization expense	(37.1	)	 	(37.9	)	 	(37.4	)	 	(37.5	)	 	(11.3	)	
Goodwill impairment	—		 	—		 	—		 	(515.6	)	 	—		
Intangible asset impairment	—		 	—		 	—		 	(146.4	)	 	—		
Restructuring expense	(9.5	)	 	(5.5	)	 	(3.8	)	 	(39.6	)	 	(21.7	)	
Integration expense	—		 	—		 	—		 	(3.6	)	 	(7.6	)	
Other expense	(2.5	)	 	0.5		 	(2.3	)	 	(3.4	)	 	—		
Total	281.8		 	218.4		 	207.0		 	(481.4	)	 	522.3		
Interest expense	(137.1	)	 	(146.7	)	 	(175.0	)	 	(174.0	)	 	(51.6	)	
Amortization of deferred financing fees	(8.2	)	 	(10.4	)	 	(22.0	)	 	(28.8	)	 	(2.5	)	
Loss on debt extinguishment	(6.3	)	 	(29.7	)	 	(44.0	)	 	(9.2	)	 	(4.1	)	
Loss on purchase price hedges	—		 	—		 	—		 	—		 	(379.4	)	
Other income (expense) - net	0.1		 	2.3		 	(9.0	)	 	17.3		 	(3.0	)	
Earnings (loss) from continuing operations before income taxes	130.3		 	33.9		 	(43.0	)	 	(676.1	)	 	81.7		
Provision (benefit) for taxes on income	38.0		 	13.6		 	26.2		 	(68.2	)	 	(20.8	)	
Earnings (loss) from continuing operations	92.3		 	20.3		 	(69.2	)	 	(607.9	)	 	102.5		
Discontinued operations:	 		 	 		 	 		 	 		 	 		
Earnings (loss) from discontinued operations, net of income taxes	0.3		 	(3.4	)	 	(8.1	)	 	(34.6	)	 	(144.8	)	
Gain (loss) on sale or closure of discontinued operations, net of income taxes	—		 	(34.6	)	 	—		 	(24.2	)	 	53.1		
Net earnings (loss)	92.6		 	(17.7	)	 	(77.3	)	 	(666.7	)	 	10.8		
Less: Net loss attributable to noncontrolling interest, net of tax	(9.1	)	 	(6.5	)	 	(2.7	)	 	(2.5	)	 	(1.9	)	
Net earnings (loss) attributable to Manitowoc	$	101.7		 	$	(11.2	)	 	$	(74.6	)	 	$	(664.2	)	 	$	12.7		
Amounts attributable to the Manitowoc common shareholders:	 		 	 		 	 		 	 		 	 		
Earnings (loss) from continuing operations	$	101.4		 	$	26.8		 	$	(66.5	)	 	$	(605.4	)	 	$	104.4		
Loss from discontinued operations, net of income taxes	0.3		 	(3.4	)	 	(8.1	)	 	(34.6	)	 	(144.8	)	
Gain (loss) on sale or closure of discontinued operations, net of income taxes	—		 	(34.6	)	 	—		 	(24.2	)	 	53.1		
Net earnings (loss) attributable to Manitowoc	$	101.7		 	$	(11.2	)	 	$	(74.6	)	 	$	(664.2	)	 	$	12.7		

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Cash Flows	 		 	 		 	 		 	 		 	 		
Cash flow from operations	$	162.3		 	$	15.6		 	209.3		 	$	339.5		 	$	306.1		
Identifiable Assets	 		 	 		 	 		 	 		 	 		
Cranes and Related Products	$	1,903.3		 	$	1,760.8		 	1,659.3		 	$	1,803.3		 	$	2,288.6		
Foodservice Equipment	1,956.8		 	2,192.6		 	2,193.4		 	2,272.1		 	3,381.0		
Corporate	197.2		 	69.2		 	219.6		 	262.6		 	444.5		
Total	$	4,057.3		 	$	4,022.6		 	4,072.3		 	$	4,338.0		 	$	6,114.1		
Long-term Obligations	$	1,824.8		 	$	1,890.0		 	1,997.4		 	$	2,172.4		 	$	2,655.3		
Depreciation	 		 	 		 	 		 	 		 	 		
Cranes and Related Products	$	44.9		 	$	54.2		 	56.5		 	$	55.3		 	$	66.3		
Foodservice Equipment	22.3		 	24.5		 	27.1		 	29.0		 	11.7		
Corporate	2.3		 	2.8		 	2.9		 	2.8		 	1.5		
Total	$	69.5		 	$	81.5		 	86.5		 	$	87.1		 	$	79.5		
Capital Expenditures	 		 	 		 	 		 	 		 	 		
Cranes and Related Products	52.7		 	52.2		 	21.9		 	51.5		 	129.4		
Foodservice Equipment	17.4		 	11.9		 	12.0		 	14.4		 	10.5		
Corporate	2.8		 	0.7		 	2.0		 	2.6		 	10.0		
Total	$	72.9		 	$	64.8		 	35.9		 	$	68.5		 	$	149.9		
Per Share	 		 	 		 	 		 	 		 	 		
Basic earnings (loss) per common share:	 		 	 		 	 		 	 		 	 		
Earnings (loss) from continuing operations attributable to Manitowoc common shareholders	$	0.77		 	$	0.21		 	$	(0.51	)	 	$	(4.65	)	 	$	0.80		
Loss from discontinued operations attributable to Manitowoc common shareholders	—		 	(0.03	)	 	(0.06	)	 	(0.27	)	 	(1.11	)	
Gain (loss) on sale or closure of discontinued operations, net of income taxes	—		 	(0.27	)	 	—		 	(0.19	)	 	0.41		
Earnings (loss) per share attributable to Manitowoc common shareholders	$	0.77		 	$	(0.09	)	 	$	(0.57	)	 	$	(5.10	)	 	$	0.10		
Diluted earnings (loss) per common share:	 		 	 		 	 		 	 	 	 	
Earnings (loss) from continuing operations attributable to Manitowoc common shareholders	$	0.76		 	$	0.20		 	(0.51	)	 	$	(4.65	)	 	$	(0.79	)	
Loss from discontinued operations attributable to Manitowoc common shareholders	—		 	(0.03	)	 	(0.06	)	 	(0.27	)	 	(1.10	)	
Gain (loss) on sale or closure of discontinued operations, net of income taxes	—		 	(0.26	)	 	—		 	(0.19	)	 	0.40		
Earnings (loss) per share attributable to Manitowoc common shareholders	$	0.76		 	$	(0.08	)	 	$	(0.57	)	 	$	(5.10	)	 	$	0.10		
Avg Shares Outstanding	 	 	 	 	 	 	 	 	 	
Basic	131,447,895		 	130,481,436		 	130,581,040		 	130,268,670		 	129,930,749		
Diluted	133,317,050		 	133,377,109		 	130,581,040		 	130,268,670		 	131,630,215		

		
(1)	Discontinued operations represent the results of operations and gain or loss on sale or closure of the Marine segment, substantially all Enodis ice businesses and certain Enodis non-ice businesses, Kysor/Warren, and Jackson, which either qualified for discontinued operations treatment or were sold or closed during 2008 through 2012.	

(2)	We acquired one business in 2010 and two businesses during 2008.	

(3)	Cash dividends per share for 2008 through 2012 were $0.08.	

(4)	Balance sheet data for 2008 through 2011 have been revised to correct errors identified in 2012. The impact of these errors on balance sheet data related to identifiable assets for Cranes and Related Products was a $62.0 million increase for 2011 and a $64.9 million increase for 2010, 2009 and 2008. The impact of these errors on balance sheet data related to identifiable assets for Foodservice Equipment was an $8.6 million decrease for 2011, 2010, and 2009 and a $9.8 million decrease for 2008. The impact of these errors on the 2011, 2010 and 2009 balance sheet data related to identifiable assets for Corporate was increases of $4.0 million, $4.9 million and $1.8 million, respectively. 2011, 2010, 2009 and 2008 net earnings (loss) data have been revised to correct errors identified in 2012. There was a $0.7 million increase to net loss in 2011, and a reduction of $4.9 million to the net loss in 2010 and 2009, and an increase to net earnings of $1.9 million in 2008. There was a $0.04 decrease to basic and diluted loss per share in 2010 and 2009 and a $0.02 increase to basic and diluted earnings per share in 2008. See Note 1, "Company and Basis of Presentation," to the Consolidated Financial Statements for further discussion of the nature of these errors.	

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Item 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes appearing in Part II, Item 8 of the Annual Report on Form 10-K.
Overview The Manitowoc Company, Inc. is a multi-industry, capital goods manufacturer in two principal markets: Cranes and Related Products (Crane) and Foodservice Equipment (Foodservice).  Crane is recognized as one of the world’s leading providers of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks.  Foodservice is one of the world’s leading innovators and manufacturers of commercial foodservice equipment serving the ice, beverage, refrigeration, food preparation, and cooking needs of restaurants, convenience stores, hotels, healthcare, and institutional applications.
During the fourth quarter of 2012, the company decided to divest its warewashing equipment business, which operated under the brand name Jackson, and classified this business as discontinued operations in the company's financial statements. Jackson designs, manufactures and sells warewashing equipment, offering a full range of undercounter dishwashers, door-type dishwashers, conveyor, pot washing, and flight-type dishwashers. On January 28, 2013, the company sold the Jackson warewashing equipment business to Hoshizaki USA Holdings, Inc. for approximately $38.5 million. Net proceeds were used to reduce ratably the then-outstanding balances of Term Loan A and B.
On December 15, 2010, the company reached a definitive agreement to divest its Kysor/Warren and Kysor/Warren de Mexico (collectively “Kysor/Warren”) businesses, which manufactured frozen, medium temperature and heated display merchandisers, mechanical refrigeration systems and remote mechanical and electrical houses to Lennox International for approximately $145 million, including a preliminary working capital adjustment.  The transaction subsequently closed on January 14, 2011 and the net proceeds were used to pay down outstanding debt.  On July 1, 2011, the company made a payment to Lennox International of $2.4 million as the final working capital adjustment under the sale agreement.  The results of these operations have been classified as discontinued operations.
The following discussion and analysis covers key drivers behind our results for 2010 through 2012 and is broken down into three major sections.  First, we provide an overview of our results of operations for the years 2010 through 2012 on a consolidated basis and by business segment.  Next we discuss our market conditions, liquidity and capital resources, off-balance sheet arrangements, and obligations and commitments.  Finally, we provide a discussion of risk management techniques, contingent liability issues, critical accounting policies, impacts of future accounting changes, and cautionary statements.
All dollar amounts, except per share amounts, are in millions of dollars throughout the tables included in this Management’s Discussion and Analysis of Financial Conditions and Results of Operations unless otherwise indicated.  The 2011 and 2010 results have been revised to reflect the correction of errors relating to these periods.  See Note 1, “Company and Basis of Presentation” for further discussion.

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Results of Consolidated Operations

												
Millions of dollars	2012	 	2011	 	2010	
Operations	 		 	 		 	 		
Net sales	$	3,927.0		 	$	3,619.2		 	$	3,111.5		
Cost of sales	2,992.6		 	2,792.5		 	2,352.1		
Gross Profit	934.4		 	826.7		 	759.4		
Operating expenses:	 		 	 		 	 		
Engineering, selling and administrative expenses	603.5		 	565.4		 	508.9		
Amortization expense	37.1		 	37.9		 	37.4		
Restructuring expense	9.5		 	5.5		 	3.8		
Other expenses (income)	2.5		 	(0.5	)	 	2.3		
Total operating expenses	652.6		 	608.3		 	552.4		
Operating earnings from continuing operations	281.8		 	218.4		 	207.0		
Other income (expenses):	 		 	 		 	 		
Interest expense	(137.1	)	 	(146.7	)	 	(175.0	)	
Amortization of deferred financing fees	(8.2	)	 	(10.4	)	 	(22.0	)	
Loss on debt extinguishment	(6.3	)	 	(29.7	)	 	(44.0	)	
Other income (expense)-net	0.1		 	2.3		 	(9.0	)	
Total other expenses	(151.5	)	 	(184.5	)	 	(250.0	)	
Earnings (loss) from continuing operations before taxes on earnings	130.3		 	33.9		 	(43.0	)	
Provision for taxes on earnings	38.0		 	13.6		 	26.2		
Earnings (loss) from continuing operations	92.3		 	20.3		 	(69.2	)	
Discontinued operations:	 		 	 		 	 		
Earnings (loss) from discontinued operations, net of income taxes	0.3		 	(3.4	)	 	(8.1	)	
Loss on sale of discontinued operations, net of income taxes	—		 	(34.6	)	 	—		
Net earnings (loss)	92.6		 	(17.7	)	 	(77.3	)	
Less: Net loss attributable to noncontrolling interest, net of tax	(9.1	)	 	(6.5	)	 	(2.7	)	
Net earnings (loss) attributable to Manitowoc	$	101.7		 	$	(11.2	)	 	$	(74.6	)	
Amounts attributable to the Manitowoc common shareholders:	 		 	 		 	 		
Earnings (loss) from continuing operations	$	101.4		 	$	26.8		 	$	(66.5	)	
Loss from discontinued operations, net of income taxes	0.3		 	(3.4	)	 	(8.1	)	
Loss on sale of discontinued operations, net of income taxes	—		 	(34.6	)	 	—		
Net earnings (loss) attributable to Manitowoc	$	101.7		 	$	(11.2	)	 	$	(74.6	)	
 
Year Ended December 31, 2012 Compared to 2011
Net Sales

												
(in millions)	 	2012	 	2011	 	Change	
  Net Sales	 	$	3,927.0		 	$	3,619.2		 	8.5	%	
Consolidated net sales increased 8.5% in 2012 to $3.9 billion from $3.6 billion in 2011 .  The increase was primarily the result of the year-over-year increase in the Crane segment along with a modest increase in the Foodservice segment.  Crane segment sales increased in all regions except China, which decreased as a result of volume reductions. The overall increase in the Crane segment was primarily driven by the Americas region due to economic recoveries and higher demand in certain emerging markets.  Crane segment sales increased 12.8% for the year ended December 31, 2012 compared to 2011 .  Foodservice sales increased in the Americas and Asia Pacific (APAC) regions from the prior year due to volume increases. Foodservice sales increased 2.2% for the year ended December 31, 2012 compared to 2011 .  Consolidated net sales were unfavorably impacted by approximately $73.5 million , or 2.0% , from foreign currency volatility in relation to the U.S. Dollar for the year ended December 31, 2012 compared with the year ended December 31, 2011 .  Further analysis of the changes in sales by segment is presented in the "Sales and Operating Earnings by Segment" section below.

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Gross Profit

												
(in millions)	 	2012	 	2011	 	Change	
Gross Profit	 	$	934.4		 	$	826.7		 	13.0	%	
Gross Margin	 	23.8	%	 	22.8	%	 	 	
Gross profit for the year ended December 31, 2012 increased to $934.4 million compared to $826.7 million for the year ended December 31, 2011 , an increase of 13.0% . Gross margin increased in 2012 to 23.8% from 22.8% in 2011 .  The increase in consolidated gross profit was attributable to sales volume increases in both the Crane and Foodservice segments in the regions noted above and pricing actions.  Crane segment gross profit increases were partially offset by increases in manufacturing costs.  The increase in gross margin was primarily due to pricing actions, cost reduction and lean actions slightly offset by investment in optimizing global footprint.
Engineering, Selling and Administrative Expenses

												
(in millions)	 	2012	 	2011	 	Change	
Engineering, selling and administrative expenses	 	$	603.5		 	$	565.4		 	6.7	%	
Engineering, selling and administrative (ES&A) expenses for the year ended December 31, 2012 increased $38.1 million to $603.5 million compared to $565.4 million for the year ended December 31, 2011 .  Crane segment ES&A increased $38.3 million , or 15.4% , for the year ended December 31, 2012 compared to the same period in 2011 .  This increase was driven by increased employee compensation and benefit costs, increased levels of engineering expenses, recognition of reserves for a small number of discrete customer financing issues and enterprise resource planning system implementation costs. Foodservice ES&A decreased $2.8 million , or 1.1% , for the year ended December 31, 2012 compared to the same period in 2011 .  This decrease was driven by reduction in sales related costs, favorable foreign exchange impact, and reduced employee costs.
Amortization Expense

												
(in millions)	 	2012	 	2011	 	Change	
Amortization expense	 	$	37.1		 	$	37.9		 	(2.1	)%	
Amortization expense for the year ended December 31, 2012 was $37.1 million compared to $37.9 million for 2011 .  See further detail related to intangible assets at Note 9, “Goodwill and Other Intangible Assets.”
Restructuring Expense

											
(in millions)	 	2012	 	2011	 	Change	
Restructuring expense	 	$	9.5		 	$	5.5		 	*	
* Measure not meaningful
Restructuring expenses for the year ended December 31, 2012 totaled $9.5 million compared to $5.5 million in 2011 .  Crane segment restructuring expenses totaled $7.2 million for the year ended December 31, 2012 .  These expenses primarily related to workforce reductions at our France operations.  Foodservice segment restructuring expenses totaled $2.3 million for the year ended December 31, 2012 .  These expenses primarily related to plant consolidation efforts in the Americas region and workforce reductions in Europe.  See further detail at Note 19, “Restructuring.”
Interest Expense & Amortization of Deferred Financing Fees

												
(in millions)	 	2012	 	2011	 	Change	
Interest expense	 	$	137.1		 	$	146.7		 	(6.5	)%	
Amortization of deferred financing fees	 	$	8.2		 	$	10.4		 	(21.2	)%	
Interest expense for the year ended December 31, 2012 totaled $137.1 million versus $146.7 million for the year ended December 31, 2011 .  The decrease in interest expense of $9.6 million for the year ended December 31, 2012 compared to the year ended December 31, 2011 was due to the amendment of our Senior Credit Facility during the second quarter of 2011, which lowered the associated interest rates along with debt reductions in 2012 and 2011. Amortization expense for deferred financing fees were $8.2 million for the year ended December 31, 2012 as compared to $10.4 million in 2011 .  The decrease in amortization expense for deferred financing fees of $2.2 million was attributable to the write-off of a portion of the deferred

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financing fees associated with the amendment in the second quarter of 2011, partially offset by the amortization of new fees associated with the Senior Credit Facility and the Senior Notes due 2022.  See further detail at Note 11, “Debt.”
Loss on Debt Extinguishment

											
(in millions)	 	2012	 	2011	 	Change	
Loss on debt extinguishment	 	$	6.3		 	$	29.7		 	*	
* Measure not meaningful
Loss on debt extinguishment for the year ended December 31, 2012 totaled $6.3 million , compared to $29.7 million in 2011 .  The loss on debt extinguishment in 2012 was attributable to the accelerated paydown of Term Loans A and B associated with our Senior Credit Facility and the redemption of our 7.125% Senior Notes due 2013. The loss on debt extinguishment in 2011 was attributable to the write-off of a portion of the deferred financing fees associated with the amendment to the Senior Credit Facility in the second quarter of 2011.
Other Income - Net

											
(in millions)	 	2012	 	2011	 	Change	
Other income - net	 	$	0.1		 	$	2.3		 	*	
* Measure not meaningful
Other income, net for the year ended December 31, 2012 was $0.1 million versus $2.3 million for the prior year.  The decrease of $2.2 million in other income for the year ended December 31, 2012 compared to the year ended December 31, 2011 was primarily due to reductions in interest income and gains from asset sales, partially offset by foreign currency losses in 2011 that did not reoccur at the same level in 2012.
Income Taxes

											
(in millions)	 	2012	 	2011	 	Change	
Effective annual tax rate	 	29.2	%	 	40.1	%	 	 	
Provision for taxes on earnings	 	$	38.0		 	$	13.6		 	*	
* Measure not meaningful
The effective tax rate for the year ended December 31, 2012 was 29.2% compared to 40.1% for the year ended December 31, 2011 .  The effective tax rate in 2012 was favorably impacted by the release of an $11.6 million reserve resulting from a favorable audit outcome. The 2011 and 2012 effective tax rates were favorably impacted by income earned in jurisdictions where the statutory rate was less than 35%.
Tax expense for the year ended December 31, 2012 was unfavorably impacted by valuation allowance adjustments on deferred tax assets totaling $17.5 million compared to $12.3 million in 2011.  The company recorded valuation allowance adjustments related to current year losses and income tax rate changes in jurisdictions with valuation allowances established in prior years. See further detail at Note 13, “Income Taxes.”
The company is under examination by the Internal Revenue Service (“IRS”) for the calendar years 2008 and 2009.  In August 2012, the company received a Notice of Proposed Assessment (“NOPA”) related to the disallowance of the deductibility of a $380.9 million foreign currency loss incurred in calendar year 2008. In September 2012, the company responded to the NOPA indicating its formal disagreement and subsequently received an Examination Report which includes the proposed disallowance.  The largest potential adjustment for this matter could, if the IRS were to prevail, increase the company's potential federal tax expense and cash outflow by approximately $134.0 million plus interest and penalties, if any. The company filed a formal protest to the proposed adjustment during the fourth quarter of 2012.  The company plans to pursue all administrative and, if necessary, judicial remedies with respect to resolving this matter.  However, there can be no assurance that this matter will be resolved in the company's favor.  The IRS also examined and proposed adjustments to the research and development credit generated in 2009; the company also formally disagreed with the adjustments.
 
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, 2012, 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

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made.  In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments.
Earnings (Loss) from Discontinued Operations

											
(in millions)	 	2012	 	2011	 	Change	
Earnings (loss) from discontinued operations	 	$	0.3		 	$	(3.4	)	 	*	
* Measure not meaningful
The results from discontinued operations were earnings of $0.3 million and a loss of $3.4 million , net of income taxes, for the years ended December 31, 2012 and 2011 , respectively.  The earnings from discontinued operations relates primarily to the Jackson business which was classified as discontinued operations in the fourth quarter of 2012, partially offset by a loss in the Kysor/Warren business that was sold on January 14, 2011.  See additional discussion at Note 4, “Discontinued Operations.”
Net Loss Attributable to Noncontrolling Interest

												
(in millions)	 	2012	 	2011	 	Change	
Net loss attributable to noncontrolling interest	 	$	9.1		 	$	6.5		 	40.0	%	
For the year ended December 31, 2012 , a net loss attributable to a noncontrolling interest of $9.1 million was recorded in relation to the minority partners' portion of the full year loss from our Chinese affiliate joint venture, Manitowoc Dongyue Heavy Machinery Co., Ltd. (Manitowoc Dongyue).  There was a net loss of $6.5 million attributable to the minority partner in connection with Manitowoc Dongyue for the same period of 2011 .
Year Ended December 31, 2011 Compared to 2010
Net Sales

												
(in millions)	 	2011	 	2010	 	Change	
  Net Sales	 	$	3,619.2		 	$	3,111.5		 	16.3	%	
Consolidated net sales increased 16.3% in 2011 to $3.6 billion from $3.1 billion in 2010.  The increase was the result of year-over-year increases in both the Crane and Foodservice segments.  Crane segment sales increased in all regions and in all product lines from 2010 due to modest economic recoveries in the Americas region and in certain emerging markets.  Crane segment sales increased 23.8% for the year ended December 31, 2011 compared to 2010.  Foodservice sales increased in all regions from 2010 due to continued penetration of global chains with whom we partner and modest economic improvements. Foodservice sales increased 6.7% for the year ended December 31, 2011 compared to 2010.  Weaker foreign currencies as compared to the U.S. Dollar had a favorable impact on consolidated net sales of $55.1 million, or 1.8%, for the year ended December 31, 2011 compared with the year ended December 31, 2010.  Further analysis of the changes in sales by segment is presented in the "Sales and Operating Earnings by Segment" section below.
Gross Profit

												
(in millions)	 	2011	 	2010	 	Change	
Gross Profit	 	$	826.7		 	$	759.4		 	8.9	%	
Gross Margin	 	22.8	%	 	24.4	%	 	 	
Gross profit for the year ended December 31, 2011 increased to $826.7 million compared to $759.4 million million for the year ended December 31, 2010, an increase of 8.9% . Gross margin decreased in 2011 to 22.8% from 24.4% in 2010.  The increase in consolidated gross profit was attributable to sales volume increases in both the Crane and Foodservice segments in all regions.  Crane segment gross profit increases were partially offset by increases in material costs, labor costs and additional provisions for warranty and excess and obsolete inventory.  Foodservice segment gross profit increases were offset by higher material and other manufacturing costs. The decrease in gross margin was due to higher material and labor costs in both segments.
Engineering, Selling and Administrative Expenses

												
(in millions)	 	2011	 	2010	 	Change	
Engineering, selling and administrative expenses	 	$	565.4		 	$	508.9		 	11.1	%	

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Engineering, selling and administrative (ES&A) expenses for the year ended December 31, 2011 increased $56.5 million to $565.4 million compared to $508.9 million for the year ended December 31, 2010.  Crane segment ES&A increased $35.1 million or 16.5% for the year ended December 31, 2011 compared to the same period in 2010.  This increase was driven by increased employee compensation and benefit costs, increased marketing expenses and increased levels of research and development.  Foodservice ES&A increased $1.6 million or 0.6% for the year ended December 31, 2011 compared to the same period in 2010.  This increase was driven by increased employee compensation and benefit costs, partially offset by cost reduction activities.
Amortization Expense

												
(in millions)	 	2011	 	2010	 	Change	
Amortization expense	 	$	37.9		 	$	37.4		 	1.3	%	
Amortization expense for the year ended December 31, 2011 was $37.9 million compared to $37.4 million for 2010.  See further detail related to intangible assets at Note 9, “Goodwill and Other Intangible Assets.”
Restructuring Expense

												
(in millions)	 	2011	 	2010	 	Change	
Restructuring expense	 	$	5.5		 	$	3.8		 	44.7	%	
Restructuring expenses for the year ended December 31, 2011 totaled $5.5 million compared to $3.8 million in 2010.  Crane segment restructuring expenses totaled $3.2 million for the year ended December 31, 2011.  These expenses primarily related to the consolidation of certain European operations.  Foodservice segment restructuring expenses totaled $2.3 million for the year ended December 31, 2011.  These expenses primarily related to plant consolidation efforts in the United States and Europe.  See further detail at Note 19, “Restructuring.”
Interest Expense & Amortization of Deferred Financing Fees

												
(in millions)	 	2011	 	2010	 	Change	
Interest expense	 	$	146.7		 	$	175.0		 	(16.2	)%	
Amortization of deferred financing fees	 	$	10.4		 	$	22.0		 	(52.7	)%	
Interest expenses for the year ended December 31, 2011 totaled $146.7 million versus $175.0 million for the year ended December 31, 2010.  The decrease in interest expense of $28.3 million for the year ended December 31, 2011 compared to the year ended December 31, 2010 was due to refinancing of our Senior Credit Facility during the second quarter of 2011, which lowered the associated interest rate paid, and debt reductions in 2011 and 2010. Amortization expense for deferred financing fees was $10.4 million for the year ended December 31, 2011 as compared to $22.0 million in 2010.  The decrease in amortization expense for deferred financing fees of $11.6 million was attributable to the write-off of a portion of the deferred financing fees associated with the refinancing in the second quarter of 2011, partially offset by the amortization of new fees associated with the New Senior Credit Facility.  See further detail at Note 11, “Debt.”
Loss on Debt Extinguishment

												
(in millions)	 	2011	 	2010	 	Change	
Loss on debt extinguishment	 	$	29.7		 	$	44.0		 	(32.5	)%	
Loss on debt extinguishment for the year ended December 31, 2011 totaled $29.7 million compared to $44.0 million in 2010.  The loss on debt extinguishment in 2011 was attributable to the write-off of a portion of the deferred financing fees associated with the amendment to the Senior Credit Facility in the second quarter of 2011. The loss on debt extinguishment in 2010 was attributable to the accelerated paydown of Term Loans A and B associated with the Senior Credit Facility.  See further detail at Note 11, “Debt.”
Other Income (Expense) - Net

											
(in millions)	 	2011	 	2010	 	Change	
Other income (expense) - net	 	$	2.3		 	$	(9.0	)	 	*	
* Measure not meaningful

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Other income (expense), net for the year ended December 31, 2011 was income of $2.3 million versus a loss of $9.0 million for the prior year.  The increase of $11.3 million in other income for the year ended December 31, 2011 compared to the year ended December 31, 2010 was due to foreign currency losses in 2010 that did not reoccur at the same level in 2011.  Other income in 2011 consisted of interest income and gains from asset sales offset by bank fees and currency losses.
Income Taxes

											
(in millions)	 	2011	 	2010	 	Change	
Effective annual tax rate	 	40.1	%	 	(60.9	)%	 	 	
Provision for taxes on earnings	 	$	13.6		 	$	26.2		 	*	
* Measure not meaningful
The effective tax rate for the year ended December 31, 2011 was 40.1% compared to negative 60.9% for the year ended December 31, 2010.  As the company posted pre-tax losses in 2010, the negative effective tax rate was an expense to the consolidated statement of operations. The effective tax rate in 2010 was unfavorably impacted by the full valuation allowance of $45.6 million on the net deferred tax asset in France. The 2011 and 2010 effective tax rates were favorably impacted by income earned in jurisdictions where the statutory rate was less than 35%.
Tax expense for the year ended December 31, 2011 was unfavorably impacted by valuation allowance adjustments on deferred tax assets totaling $12.3 million compared to $52.0 million in 2010.  The company recorded a full valuation allowance of $45.6 million on the net deferred tax asset for net operating loss carryforwards in France during the fourth quarter of 2010. During 2011, the company continued to record valuation allowances on the deferred tax assets in France and certain other jurisdictions, as it remained more-likely-than-not that they would not be utilized. See further detail at Note 13, “Income Taxes.”
Loss from Discontinued Operations

												
(in millions)	 	2011	 	2010	 	Change	
Loss from discontinued operations	 	$	(3.4	)	 	$	(8.1	)	 	(58.0	)%	
The results from discontinued operations were a loss of $(3.4) million and a loss of $(8.1) million , net of income taxes, for the years ended December 31, 2011 and 2010, respectively.  The loss from discontinued operations related primarily to the Kysor/Warren business that was sold on January 14, 2011.  See additional discussion at Note 4, “Discontinued Operations.”
Net Loss Attributable to Noncontrolling Interest

											
(in millions)	 	2011	 	2010	 	Change	
Net loss attributable to noncontrolling interest	 	$	6.5		 	$	2.7		 	*	
* Measure not meaningful
For the year ended December 31, 2011, a net loss attributable to a noncontrolling interest of $6.5 million was recorded in relation to the minority partners' portion of the full year loss from our Chinese joint venture Manitowoc Dongyue Heavy Machinery Co., Ltd. (Manitowoc Dongyue).  There was a net loss of $2.7 million attributable to the minority partner in connection with Manitowoc Dongyue for the same period of 2010.
Sales and Operating Earnings by Segment
Cranes and Related Products Segment

												
(in millions)	2012	 	2011	 	2010	
Net sales	$	2,440.8		 	$	2,164.6		 	$	1,748.6		
Operating earnings	$	156.0		 	$	108.2		 	$	90.6		
Operating margin	6.4	%	 	5.0	%	 	5.2	%	
Year Ended December 31, 2012 Compared to 2011
Crane segment net sales for the year ended December 31, 2012 increased to $2.4 billion versus $2.2 billion for the year ended December 31, 2011 , which was primarily the result of volume increases and pricing actions. The increase was partially offset by the unfavorable impact of approximately $61.7 million from foreign currency volatility in relation to the U.S. Dollar for the

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year ended December 31, 2012 compared with the year ended December 31, 2011 . As of December 31, 2012 , total Crane segment backlog was $755.8 million, a slight decrease from the December 31, 2011 backlog of $760.5 million.
For the year ended December 31, 2012 , the Crane segment reported operating earnings of $156.0 million compared to $108.2 million for the year ended December 31, 2011 .  Operating earnings for the Crane segment were favorably affected by higher sales volumes, pricing actions and favorable warranty experience. These increases in operating earnings were partially offset by increases in material costs, labor costs and additional provisions for excess and obsolete inventory.  In addition, ES&A expense was affected by increased employee compensation and benefit costs, increased levels of engineering expenses, recognition of reserves for a small number of discrete customer financing issues and enterprise resource planning system implementation costs. Operating margin for the year ended December 31, 2012 was 6.4% versus 5.0% for the year ended December 31, 2011 .  Crane’s operating margin increased primarily due to the pricing actions noted above.
Year Ended December 31, 2011 Compared to 2010
Crane segment net sales for the year ended December 31, 2011 increased 29.4% to $2.2 billion versus $1.7 billion for the year ended December 31, 2010.  Crane segment sales increased in all geographic regions and in all product lines from 2010 due to modest economic recoveries in the Americas region and certain emerging markets. As of December 31, 2011, total Crane segment backlog was $760.5 million, an increase of 33.0% from the December 31, 2010 backlog of $571.7 million and consistent with the September 30, 2011 backlog of $774.6 million.  The trend for new orders, net of insignificant cancellations, continued to improve throughout 2011.
For the year ended December 31, 2011, the Crane segment reported operating earnings of $108.2 million compared to $90.6 million for the year ended December 31, 2010.  Operating earnings for the Crane segment were favorably affected by higher sales volumes and higher factory absorption, but were offset by increases in material costs, labor costs and additional provisions for warranty and excess and obsolete inventory.  In addition, ES&A expense was affected by increased employee compensation and benefit costs, marketing expenses and increased levels of research and development. Operating margin for the year ended December 31, 2011 was 5.0% versus 5.2% for the year ended December 31, 2010.  Crane’s operating margin decreased primarily due to the increased costs noted above offsetting the sales growth.  The year ended December 31, 2010 also benefited from the collection of a previously reserved receivable of $4.2 million and a favorable adjustment to the excess and obsolete inventory reserve of $5.0 million.
Foodservice Equipment Segment

												
(in millions)	2012	 	2011	 	2010	
Net sales	$	1,486.2		 	$	1,454.6		 	$	1,362.9		
Operating earnings	$	238.6		 	$	214.4		 	$	201.9		
Operating margin	16.1	%	 	14.7	%	 	14.8	%	
Year Ended December 31, 2012 Compared to 2011
Foodservice segment net sales increased $31.6 million to $1.5 billion for the year ended December 31, 2012 compared to the prior year.  The sales increase during 2012 was primarily driven by volume increases in the Americas and APAC regions coupled with pricing actions. The increase was partially offset by an increase in rebates and an unfavorable impact of approximately $11.8 million from foreign currency volatility in relation to the U.S. Dollar for the year ended December 31, 2012 compared with the year ended December 31, 2011 .
For the year ended December 31, 2012 , the Foodservice segment reported operating earnings of $238.6 million compared to $214.4 million for the year ended December 31, 2011 .  The 2012 operating earnings increase and operating margin increase to 16.1% from 14.7% in 2011 were primarily due to increases in volume, pricing actions and manufacturing cost reduction initiatives, which were partially offset by increases in rebates and warranty expense, due to increases in volume and material and labor costs.  In addition, approximately $1.2 million of the increase was offset by foreign currency volatility in relation to the U.S. Dollar for the year ended December 31, 2012 compared to the year ended December 31, 2011 .
Year Ended December 31, 2011 Compared to 2010
Foodservice segment net sales increased 6.7% , or 91.7 million , to $1.5 billion for the year ended December 31, 2011 compared to $1.4 billion for the year ended December 31, 2010 .  The sales increase during 2011 was driven by new product introductions and increased sales in all regions.  In addition, approximately $25.2 million of the increase was due to the weaker U.S. Dollar relative to the Euro and British Pound currencies.

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For the year ended December 31, 2011 , the Foodservice segment reported operating earnings of $214.4 million compared to $201.9 million for the year ended December 31, 2010 .  The 2011 operating earnings increase was primarily due to higher volume, appropriate pricing actions and manufacturing cost savings which were only partially offset by material and other cost increases.  Operating margin decreased in 2011 to 14.7% from 14.8% in 2010 . In addition, approximately $1.2 million of the operating earnings increase was due to the weaker U.S. Dollar relative to the Euro and British Pound currencies.
General Corporate Expenses

												
(in millions)	2012	 	2011	 	2010	
Net sales	$	3,927.0		 	$	3,619.2		 	$	3,111.5		
Corporate expenses	$	63.7		 	$	61.3		 	$	42.0		
% of Net sales	1.6	%	 	1.7	%	 	1.3	%	
 
Year Ended December 31, 2012 Compared to 2011
Corporate expenses increased $2.4 million to $63.7 million in 2012 compared to $61.3 million in 2011 .  The increase was due to higher employee benefit and stock-based award compensation expenses.
Year Ended December 31, 2011 Compared to 2010
Corporate expenses increased $19.3 million to $61.3 million in 2011 compared to $42.0 million in 2010 .  The increase was due to higher employee stock-based and total compensation, benefit costs and increased professional services.
Market Conditions and Outlook
In 2013, we are planning for continued growth in both of our two business segments: Cranes and Related Products and Foodservice Equipment.  We are focused on margin improvement in the face of slow growth and potentially choppy end markets and macro-economies. Lingering concerns over government transitions, regulatory policies, and consumer confidence have influenced our outlook and action plans as we start 2013. However, our team has proven time and again its ability to navigate through challenging landscapes. We have been diligent in our efforts to improve operational efficiencies and manage our cost structure over the last several years.
Looking ahead to 2013, we expect Foodservice segment revenues to improve modestly in the mid-single digit range and operating margins to be consistent in 2013, versus 2012. We expect Crane segment revenues to increase in the high single digit range in 2013 versus 2012. Additionally, we anticipate that operating margins in our Crane segment will be in the high single digit range. Other financial expectations include capital expenditures of approximately $100 million, depreciation and amortization of approximately $115 million, a debt reduction target to exceed $200 million, between $10 million and $15 million reduction in interest expense, and full-year effective tax rate in the mid 30 percent range.
Cranes and Related Products - Our Crane segment is benefiting from recovery in crane demand, especially within emerging markets in Asia, Latin America, and the Middle East as well as in North America. As a result, our year-end backlog has stabilized at $755.8 million as of December 31, 2012 compared to $760.5 million in December 31, 2011 .
Our initiatives in the area of quality, reliability and performance are producing positive results. These include improving Customer Satisfaction Index (CSI) scores, reduced warranty claims, improved Mean Time Between Failure (MTBF) and improved emissions. Our investments in a component and systems validation and accelerated life cycle testing facility has improved our new product development process and the reliability of our cranes. We believe these efforts, combined with the cost reduction initiatives and the process and facilities improvements that have been made in 2012 and prior years, allow us to deliver better cranes to our customers in a more efficient manner.

We expect the opportunities and the need for cranes to continue all around the globe. We enjoy filling the needs from many industries including construction, infrastructure, refining, all forms of energy production and energy transmission. We also continue to see demand for our industry-leading product support services. Our Crane Care business is not only a key differentiator for us, but it is also especially important to our customers as the market rebounds to ensure uptime availability.

Forecasting remains challenging due to mixed views from trade association and industry economists as well as continued sovereign financial issues in Europe. We continue to use what we believe to be the best information that is available and have also expanded our efforts to become more responsive to changes in demand between regions and product lines. These efforts allow us to better meet the sudden changes in demand that an unstable recovering economy makes and this allows us to

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improve our market share with our ability to have the right product available at the right time. The Crane segment looks to leverage its manufacturing footprint, while improving working capital efficiency, and increasing ES&A expenses at a slower rate than revenue increases throughout 2013. In addition, we anticipate that a continued focus on economic value-added (EVA ® ) will help to optimize cash flow and boost the segment's earnings potential. Underlying these financial goals, the Crane segment is focused on strategic initiatives, which include for 2013 the continuation of our Project One ERP initiative with go-live implementations in Singapore, Australia, Philippines, Italy, and Manitowoc; driving manufacturing excellence initiatives through the use of lean manufacturing principles; the continuing introduction of new crawler, tower, and mobile cranes; intensified leverage of our presence in various emerging markets; and an ongoing build-out of our Crane Care infrastructure to support accelerating whole goods sales in emerging and developed markets.

From a longer-term perspective, we are among the world's leading sources of lifting solutions, with what we believe to be the most recognized brands and the broadest manufacturing and support footprint in the industry. Globally, we expect an increasing demand for modern infrastructure and energy, and we are well-positioned to support these end markets anywhere in the world. We have a resilient business, with a strong global distribution network and a large installed base of equipment complemented by the best and most experienced workforce in the industry. As a result, we expect to thrive as the world economy recovers and the crane industry grows.
Foodservice Equipment - Manitowoc Foodservice is a leading player in the global foodservice equipment industry. Our customers include many of the fastest-growing and most-innovative foodservice companies in the world. They come to us for innovations that allow them to improve their menus, enhance their operations and reduce their costs. We serve customers around the globe and we will continue to expand and support our customers wherever they grow. Our integrated manufacturing operations, service sites and sales offices work together to assist customers worldwide, whether these customers are local businesses or global companies.
During 2012 we launched numerous new products supporting our customers' menu initiatives, energy savings goals and sustainability initiatives. Because we can help our customers operate more profitably and deliver innovative food product solutions, we believe they are willing to invest in our products, even during recessionary economic conditions.

A number of leading indicators suggest that 2013 will bring continued growth opportunities in the foodservice sector, The US National Restaurant Association ("NRA") and the Manufacturers' Agents Association for the Foodservice Industry ("MAFSI") released their 2013 US Market forecasts, both projecting growth for 2013.  NRA projected that overall operator sales would increase 0.8%.  Quick service restaurant ("QSR") (+4.9%), Snack/Beverage (+4.3%), Managed Services (+4.0%) and Hospitals (+4.5%) are projected to be the fastest growing major segments. MAFSI's forecast for 2013 sales is a healthy 4.7% gain in equipment and supplies. This reflects the largely North American perspective of MAFSI which escapes the difficulties of the softer global economy, especially in Europe.  According to MAFSI the "hot spots" of activity are Education (K‐12 and Colleges), Health Care, and Chain Accounts while the "Soft Spots" are Fine Dining, Independent Operators, and Correctional Institutions. 

Globally, Euromonitor projects that foodservice operator sales growth will continue at approximately 4%, global outlet growth will continue at approximately 3%, with the QSR and full service segments experiencing faster outlet growth based on continued rapid expansion in Asia Pacific, Latin America and the Middle East. Growth in the Asia Pacific region will be driven by a cultural preference for social, sit-down dining and upwardly mobile consumers seeking quick, value-priced options. Euromonitor also reports that in Latin America, consumers are demanding more premium dining options in a full-service environment, while major fast food players are increasing their focus on the region and expanding aggressively. Euromonitor expects there will be significant opportunities in key Gulf States, albeit from a relatively small base.

Our strong position gives us significant opportunities to grow along with our customers. Not only do we aim to be their supplier of choice, but also their innovator of choice. Our customers are constantly looking for ways to innovate their menus, and we are at the forefront of that innovation. Global chain customers and our channel partners recognize Manitowoc Foodservice and our brands for innovation and supplier support. In 2012, Manitowoc Foodservice received the ENERGY STAR ® Sustained Excellence award, following previous recognition in 2010 and 2011 as Energy Star Partner of the Year, showcasing our long-term commitment to energy conservation and operating efficiency. Additionally, the U.S. National Restaurant Association recognized our Frymaster, Garland and Merrychef brands with Kitchen Innovation Awards in 2012, bringing our total to 23 of these prestigious awards. Cleveland, Frymaster, Lincoln and Manitowoc Ice received recognition from Foodservice Equipment and Supplies magazine as Best In Class in six equipment categories as voted by end users, design consultants and channel partners. This marks the twelfth straight year of Best in Class awards for Manitowoc Ice and Frymaster.

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Finally, our Foodservice equipment brands are well-positioned leaders that span virtually all major commercial foodservice equipment categories. Our team is remarkably passionate about the combined businesses and the opportunities that our market position and global capabilities provide us. For 2013, our priorities are to continue to grow our Foodservice segment, continue to leverage economies of scale from the combined Manitowoc Foodservice organization, as well as invest in manufacturing consolidations and relocations in order to drive continued margin expansion starting in 2014 and beyond. We are continuing to build an industry-leading business for the long-term.
Liquidity and Capital Resources
Cash Flows. The table below shows a summary of cash flows for fiscal 2012 , 2011 , and 2010 (in millions):

													
 	 	2012	 	2011	 	2010	
Cash provided by operating activities	 	$	162.3		 	$	15.6		 	$	209.3		
Cash (used for) provided by investing activities	 	$	(75.5	)	 	$	98.4		 	$	(24.9	)	
Cash used for financing activities	 	$	(83.2	)	 	$	(125.9	)	 	$	(204.4	)	
Cash flow from operations during 2012 was $162.3 million compared to $15.6 million in 2011 .  We had $73.4 million in cash and cash equivalents on-hand at December 31, 2012 versus $68.6 million on-hand at December 31, 2011 .
The increase in cash flow from operating activities for the year ended December 31, 2012 compared to the same period for 2011 was primarily due to cash flow from earnings and better management of working capital. The primary contributors to the changes in working capital were reductions in the increase of inventory and accounts receivable, and reduction in the decrease of accrued expenses and other liabilities.  This was partially offset by a reduction to the increase in accounts payable.
Cash flow from operations during 2011 was $15.6 million compared to $209.3 million in 2010. We had $68.6 million in cash and cash equivalents on-hand at December 31, 2011 versus $83.7 million on-hand at December 31, 2010.
The decrease in cash flow from operating activities for the year ended December 31, 2011 compared to the same period for 2010 is attributable to increases in working capital requirements to support the increase in sales volumes. The primary contributors to the working capital increase were an increase in accounts receivable and inventory. These increases were only partially offset by an increase in accounts payable.
Cash flows used for investing activities of $75.5 million in 2012 consisted primarily of cash used for capital expenditures of $72.9 million . 
Cash flows from investing activities of $98.4 million in 2011 consisted primarily of cash used for capital expenditures of $64.9 million. These outflows were offset by proceeds from sales of fixed assets of $17.5 million and proceeds from the sale of Kysor Warren of $143.6 million.
Cash flows used for investing activities of $24.9 million in 2010 consisted primarily of cash used for capital expenditures of $36.1 million for maintenance capital expenditures and new product development in the Crane and Foodservice segments, offset by proceeds from the sale of property and equipment.
Cash flows used for financing activities during 2012 consisted primarily of debt paydown totaling $495.4 million , partially offset by proceeds from debt issuance of $383.3 million and proceeds from the revolver facility of $34.4 million .
Cash flows used for financing activities during 2011 consisted primarily of debt paydown totaling $139.5 million and the payment of dividends of $10.6 million.
Cash flows used for financing activities consisted primarily of the net paydown of debt in 2010 of $163.6 million, debt issuance costs of $27.0 million and the payment of dividends of $10.6 million.
The company’s Senior Credit Facility originally became effective November 6, 2008 and initially included four loan facilities.  On May 13, 2011, the company amended and extended the maturities of its Senior Credit Facility by entering into a $1,250.0 million Second Amended and Restated Credit Agreement (the “Senior Credit Facility”) with JPMorgan Chase Bank, N.A., as Administrative Agent, Deutsche Bank Securities Inc. and Bank of America, N.A., as Syndication Agents, and Wells Fargo Bank, National Association and Natixis, as Documentation Agents.  The Senior Credit Facility currently includes three different loan facilities. The first is a revolving facility in the amount of $500 million with a term of five years. The second facility is an amortizing Term Loan A facility in the aggregate amount of $350.0 million ( $297.5 million outstanding as of December 31, 2012 ) with a term of five years. The third facility is an amortizing Term Loan B in the aggregate amount of $450.0 million ( $81.0 million outstanding as of December 31, 2012 ) with a term of 6.5 years. Including interest rate caps at December 31,

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2012 , the weighted average interest rates for Term Loan A and Term Loan B were 3.25% and 4.25%, respectively.  Excluding interest rate caps, Term Loan A and Term Loan B interest rates were 3.25% and 4.25%, respectively, at December 31, 2012 .  The weighted average interest rates for the company’s term loans at December 31, 2012 including and excluding the impact of the interest rate caps were the same because the relevant one-month U.S. LIBOR rate in effect at December 31, 2012 was below the 3.00% cap level.  See additional discussion of our Senior Credit Facility in Note 11, “Debt.”
The Senior Credit Facility contains financial covenants including (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) consolidated earnings before interest, taxes, depreciation and amortization, and other adjustments (EBITDA), as defined in the credit agreement to (ii) consolidated cash interest expense, each for the most recent four fiscal quarters, and (b) Consolidated Senior Secured Indebtedness Ratio, which measures the ratio of (i) consolidated senior secured indebtedness to (ii) consolidated EBITDA for the four most recent fiscal quarters.  The current covenant levels of the financial covenants under the Senior Credit Facility are set forth below:

					
Fiscal Quarter Ending	 	Consolidated Senior
Secured Leverage
Ratio
  (less than)	 	Consolidated Interest
Coverage Ratio
  (greater than)	
December 31, 2012	 	3.50:1.00	 	2.00:1.00	
March 31, 2013	 	3.50:1.00	 	2.25:1.00	
June 30, 2013	 	3.25:1.00	 	2.25:1.00	
September 30, 2013	 	3.25:1.00	 	2.50:1.00	
December 31, 2013	 	3.25:1.00	 	2.50:1.00	
March 31, 2014	 	3.25:1.00	 	2.75:1.00	
June 30, 2014	 	3.25:1.00	 	2.75:1.00	
September 30, 2014	 	3.25:1.00	 	2.75:1.00	
December 31, 2014, and thereafter	 	3.00:1.00	 	3.00:1.00	
The Senior Credit Facility includes customary representations and warranties and events of default and customary covenants, including without limitation (i) a requirement that the company prepay the term loan facilities from the net proceeds of asset sales, casualty losses, equity offerings, and new indebtedness for borrowed money, and from a portion of its excess cash flow, subject to certain exceptions; and (ii) limitations on indebtedness, capital expenditures, restricted payments, and acquisitions.
The company has three series of Senior Notes outstanding, including the 2018, 2020, and 2022 Notes (collectively the “Senior Notes,” see below for a description of the 2018, 2020, and 2022 Notes).  Each series of Senior Notes are unsecured senior obligations ranking subordinate to all existing senior secured indebtedness and equal to all existing senior unsecured obligations.  Each series of Senior Notes is guaranteed by certain of the company’s wholly owned domestic subsidiaries, which subsidiaries also guaranty the company’s obligations under the Senior Credit Facility.  Each series of Senior Notes contains affirmative and negative covenants which limit, among other things, the company’s ability to redeem or repurchase its debt, incur additional debt, make acquisitions, merge with other entities, pay dividends or distributions, repurchase capital stock, and create or become subject to liens.  Each series of Senior Notes also includes customary events of default. If an event of default occurs and is continuing with respect to the Senior Notes, then the Trustee or the holders of at least 25% of the principal amount of the outstanding Senior Notes may declare the principal and accrued interest on all of the Senior Notes to be due and payable immediately. In addition, in the case of an event of default arising from certain events of bankruptcy, all unpaid principal of, and premium, if any, and accrued and unpaid interest on all outstanding Senior Notes will become due and payable immediately.
On October 19, 2012, the company completed the sale of $300 million aggregate principal amount of its 5.875% Senior Notes due October 2022 (the "2022 Notes") at an issue price of 100%. Net Proceeds for the 2022 Notes were used to redeem the entire $150 million aggregate principal amount of its Senior Notes due 2013 (the "2013 Notes"), to repay $36 million of Term Loan B and to repay a portion of the outstanding revolver borrowings under its Senior Credit Facility. Interest on the 2022 Notes is payable semi-annually in April and October of each year.
The following would be the principal and premium paid by the company, expressed as a percentage of the principal amount, if it redeems the 2022 Notes during the 12-month period commencing on October 15 of the year set forth below:

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Year	 	Percentage	
2017	 	102.938	%	
2018	 	101.958	%	
2019	 	100.979	%	
2020 and thereafter	 	100.000	%	
In addition, at any time prior to October 15, 2015, the company is permitted to, at its option, use the net cash proceeds of one or more public equity offers to redeem up to 35% of the 2022 Notes at a redemption price of 105.875%, plus accrued but unpaid interest, if any, to the date of redemption, provided that (1) at least 65% of the principal amount of the 2022 Notes outstanding remains outstanding immediately after any such redemption; and (2) the company makes such redemptions not more than 90 days after the consummation of any such public offering. Further, the company is required to offer to repurchase the 2022 Notes for cash at a price of 101% of the aggregate principal amount of the 2022 Notes, plus accrued and unpaid interest, if any, upon the occurrence of a change of control triggering event.
On February 3, 2010, the company completed the sale of $400.0 million aggregate principal amount of its 9.50% Senior Notes due 2018 (the “2018 Notes”). Net proceeds of $392.0 million from this offering were used to partially pay down ratably the then outstanding balances on Term Loan A and Term Loan B.  Interest on the 2018 Notes is payable semiannually in February and August of each year.  The 2018 Notes may be redeemed in whole or in part by the company for a premium at any time on or after February 15, 2014. 
The following would be the principal and premium paid by the company, expressed as a percentage of the principal amount, if it redeems the 2018 Notes during the 12-month period commencing on February 15 of the year set forth below:

				
Year	 	Percentage	
2014	 	104.750	%	
2015	 	102.375	%	
2016 and thereafter	 	100.000	%	
In addition, at any time, or from time to time, on or prior to February 15, 2013, the company was able, at its option, to use the net cash proceeds of one or more public equity offerings to redeem up to 35% of the principal amount of the 2018 Notes outstanding at a redemption price of 109.5% of the principal amount thereof plus accrued and unpaid interest thereon, if any, to the date of redemption; provided that (1) at least 65% of the principal amount of the 2018 Notes outstanding remains outstanding immediately after any such redemption; and (2) the company makes such redemption not more than 90 days after the consummation of any such public offering.
On October 18, 2010, the company completed the sale of $600.0 million aggregate principal amount of its 8.50% Senior Notes due 2020 (the “2020 Notes”). Net proceeds of $583.7 million from this offering were used to pay down ratably the then outstanding balances of Term Loans A and B.  Interest on the 2020 Notes is payable semi-annually in May and November of each year. 
The following would be the principal and premium paid by the company, expressed as a percentage of the principal amount, if it redeems the 2020 Notes during the 12-month period commencing on November 1 of the year set forth below:

				
Year	 	Percentage	
2015	 	104.250	%	
2016	 	102.833	%	
2017	 	101.417	%	
2018 and thereafter	 	100.000	%	
In addition, at any time prior to November 1, 2013, the company may, at its option, use the net cash proceeds of one or more public equity offerings to redeem up to 35% of the 2020 Notes at a redemption price of 108.5%, plus accrued but unpaid interest, if any, to the date of redemption; provided that (1) at least 65% of the principal amount of the 2020 Notes outstanding remains outstanding immediately after any such redemption; and (2) the company makes such redemption not more than 90 days after the consummation of any such public offering.

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As of December 31, 2012 , the company had outstanding $81.3 million of other indebtedness that has a weighted-average interest rate of approximately 6.47% .  This debt includes outstanding line of credit balances and capital lease obligations in its Americas, Asia-Pacific and European regions.
The aggregate scheduled maturities of outstanding debt obligations in subsequent years are as follows (in millions):

					
Year	 	 	
2013	 	$	92.8		
2014	 	40.1		
2015	 	39.9		
2016	 	232.3		
2017	 	81.8		
Thereafter	 	1,337.9		
Total	 	$	1,824.8		
As of June 30, 2011, the company offset, dedesignated, and wrote-off all of its previous float-to-fixed interest rate swaps against Term Loans A and B interest due to the amendment of its original Senior Credit Facility (See Note 8, "Debt," for a description of the Senior Credit Facility).  As of December 31, 2012 , the company had outstanding $225.0 million notional amount of 3.00% LIBOR caps related to the term loan portion of the Senior Credit Facility which effectively cap the company’s future interest rate exposure for the notional value of its variable term debt at a one-month LIBOR rate of 3.00% . The company paid various bank partners $0.7 million in option premium to purchase the protection on Term Loans A and B and will amortize the related derivative asset to interest expense over the life of the cap protection.  The caps were designated as a cash flow hedge so any change in value of the derivative is booked to other comprehensive income.  The remaining unhedged portions of Term Loans A and B continue to bear interest according to the terms of the Senior Credit Facility.
The company was also party to various fixed-to-float interest rate swaps designated as fair market value hedges of its 2018 and 2020 Notes.  At December 31, 2011 , $200.0 million and $300.0 million of the 2018 and 2020 Notes, respectively, were swapped to floating rate interest.  At December 31, 2011 , the weighted average interest rates for the 2018 and 2020 Notes taking into consideration the impact of floating rate hedges were 8.88% and 7.66%, respectively. The company monetized the derivative asset related to its fixed-to-float interest rate swaps due in 2018 and 2020 and received $21.5 million in the third quarter of 2011. The gain was treated as an increase to the debt balances for the 2018 and 2020 Notes and will be amortized against interest expense over the life of the original swap. Before the end of 2011, the company subsequently entered new interest rate swaps due in 2018 and 2020.
In the third quarter of 2012, the company further 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. Consistent with prior year monetization, the company treated the gain as an increase to the debt balances for each of the 2018 and 2020 notes, which will be amortized against interest expense over the life of the original swaps.
In the fourth quarter of 2012, the company purchased and designated new fixed-to-float swaps as fair market value hedges of the company’s 2022 Notes.  At December 31, 2012 , $100.0 million of the 2022 Notes were swapped to floating rate interest.  Including the impact of these floating rate swaps, the 2022 Senior Notes have an all-in interest rate of 5.353% .
As of December 31, 2012 the company was in compliance with all affirmative and negative covenants in its debt instruments inclusive of the financial covenants pertaining to the Senior Credit Facility, the 2018 Notes, the 2020 Notes and the 2022 Notes. Based upon the company’s current plans and outlook, the company believes it will be able to comply with these covenants during the subsequent 12 months.  As of December 31, 2012 the company’s Senior Leverage Ratio was 1.61 :1, below the maximum ratio of 3.50:1 and the company’s Consolidated Interest Coverage Ratio was 3.03 :1, above the minimum ratio of 2.00:1. 
The company defines Adjusted EBITDA as earnings before interest, taxes, depreciation, and amortization, plus certain items such as pro-forma acquisition results and the addback of certain restructuring charges, that are adjustments under the Senior Credit Facility definition.  The company’s trailing twelve-month Adjusted EBITDA for covenant compliance purposes as of December 31, 2012 was $406.1 million . The company believes this measure is useful to the reader in order to understand the basis for the company’s debt covenant calculations. The reconciliation of Net income attributable to Manitowoc to Adjusted EBITDA is as follows (in millions):

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Net income attributable to Manitowoc	 	$	101.7		
Earnings from discontinued operations	 	(0.3	)	
Depreciation and amortization	 	106.6		
Interest expense and amortization of deferred financing fees	 	145.3		
Costs due to early extinguishment of debt	 	6.3		
Restructuring charges	 	9.5		
Income taxes	 	38.0		
Other	 	(1.0	)	
Adjusted EBITDA	 	$	406.1		
The company maintains a $150.0 million trade accounts receivable securitization facility.  Effective September 26, 2012, the company entered into a Fourth Amended and Restated Receivables Purchase Agreement (the “Receivables Purchase Agreement”).  Trade accounts receivables sold pursuant to the Receivables Purchase Agreement totaled $149.2 million at December 31, 2012 versus $121.1 million at December 31, 2011 .  See Note 12, “Accounts Receivable Securitization” for further information regarding this arrangement.
On March 1, 2010, the company acquired 100% of the issued and to be issued shares of Appliance Scientific, Inc. (ASI).  ASI is a leader in accelerated cooking technologies. The cash flow impact of this acquisition is included in business acquisition, net of cash acquired within the cash flow from investing section of the Consolidated Statements of Cash Flows.
We spent a total of $72.9 million during 2012 for capital expenditures.  We continued to fund capital expenditures to improve the cost structure of our business, invest in new processes, products and technology, maintain high-quality production standards, implement our new Crane ERP system at certain of our facilities and complete certain production capacity expansion.  The following table summarizes 2012 capital expenditures and depreciation by segment. 

									
(in millions)	 	Capital
  Expenditures	 	Depreciation	
Cranes and Related Products	 	$	52.7		 	$	44.9		
Foodservice Equipment	 	17.4		 	22.3		
Corporate	 	2.8		 	2.3		
Total	 	$	72.9		 	$	69.5		
Restricted cash represents cash in escrow funds related to the security provided to third-party lenders for certain international lines of credit and for an indemnity agreement with our casualty insurance provider.
During the years ended December 31, 2012 and 2011 , the company sold $14.3 million and $11.9 million , respectively, of its long-term notes receivable to third party financing companies. The company guarantees some percentage, up to 100%, of collection of the notes to the financing companies.  The company has accounted for the sales of the notes as a financing of receivables.  The receivables remain on the company’s Consolidated Balance Sheets, net of payments made, in other current and non-current assets and the company has recognized an obligation equal to the net outstanding balance of the notes in other current and non-current liabilities in the Consolidated Balance Sheets.  The cash flow benefit of these transactions is reflected as financing activities in the Consolidated Statements of Cash Flows.  During the years ended December 31, 2012 and 2011 customers have paid $14.3 million and $2.7 million , respectively, of the notes to the third party financing companies.  As of December 31, 2012 and 2011 , the outstanding balance of the notes receivables guaranteed by the company was $14.4 million and $14.1 million , respectively.
Our debt position at various times increases our vulnerability to general adverse industry and economic conditions, and results in a meaningful portion of our cash flow from operations being used for payment of interest on our debt.  This could potentially limit our ability to respond to market conditions or take advantage of future business opportunities.  Our ability to service our debt is dependent upon many factors, some of which are not subject to our control, such as general economic, financial, competitive, legislative, and regulatory factors.  In addition, our ability to borrow additional funds under the revolving credit facility in the future will depend on our meeting the financial covenants contained in the credit agreement, even after taking into account such new borrowings.
The revolving credit facility under our Senior Credit Facility, or other future facilities, may be used for working capital requirements, capital expenditures, funding future acquisitions, and other operating, investing and financing needs.  We believe

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that our available cash, revolving credit facility, cash generated from future operations, and access to public debt and equity markets will be adequate to fund our capital and debt financing requirements for the foreseeable future.
Our liquidity positions as of December 31, 2012 and 2011 were as follows:

									
(in millions)	 	2012	 	2011	
Cash and cash equivalents	 	$	76.1		 	$	71.3		
Revolver borrowing capacity	 	500.0		 	500.0		
Less: Borrowings on revolver	 	(34.4	)	 	—		
Less: outstanding letters of credit	 	(38.2	)	 	(34.5	)	
Total liquidity	 	$	503.5		 	$	536.8		
The revolving facility under the Senior Credit Facility has a maximum borrowing capacity of $500.0 million and expires in May 2016. As of December 31, 2012 , the company had $34.4 million of borrowings on the revolving facility. During the year the highest daily borrowing was $299.9 million and the average borrowing was $141.2 million , while the average interest rate was 3.50% . The interest rate fluctuates based upon LIBOR or a Prime rate plus a spread, which is based upon the Consolidated Total Leverage Ratio of the company. As of December 31, 2012 , the spreads for LIBOR and Prime borrowings were 2.75% and 1.75% , respectively, given the effective Consolidated Total Leverage Ratio for this period.
The company has not provided for additional U.S. income taxes on approximately $649.9 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. At December 31, 2012 , approximately $57.1 million of our total cash and cash equivalents were held by our foreign subsidiaries. This cash is associated with earnings that we have asserted are permanently reinvested. We have no current plans to repatriate cash or cash equivalents held by our foreign subsidiaries because we plan to reinvest such cash and cash equivalents to support our operations and continued growth plans outside the United States through funding of capital expenditures, acquisitions, research, operating expenses or other similar cash needs of these operations. Further, we do not currently forecast a need for these funds in the United States because the U.S. operations and debt service is supported by the cash generated by the U.S. operations. The company's intent is to repatriate foreign cash when it would be tax effective through the utilization of foreign tax credits or when earnings qualify as previously taxed income.
Management also considers the following regarding liquidity and capital resources to identify trends, demands, commitments, events and uncertainties that require disclosure:
A .    Our Senior Credit Facility requires us to comply with certain financial ratios and tests to comply with the terms of the agreement. We were in compliance with these covenants as of December 31, 2012 , the latest measurement date. The occurrence of any default of these covenants could result in acceleration of any outstanding balances under the Senior Credit Facility. Further, such acceleration would constitute an event of default under the indentures governing our 2018 Notes, 2020 Notes, and 2022 Notes, and could trigger cross default provisions in other agreements.
B.    Circumstances that could impair our ability to continue to engage in transactions that have been integral to historical operations or are financially or operationally essential, or that could render that activity commercially impracticable, such as the inability to maintain a specified credit rating, level of earnings, earnings per share, financial ratios, or collateral.   We do not believe that these risk factors applicable to our business are reasonably likely to impair our ability to continue to engage in our planned activities at this time.
C.    Factors specific to us and our markets that we expect to be given significant weight in the determination of our credit rating or will otherwise affect our ability to raise short-term and long-term financing . We do not presently believe that events covered by these risk factors applicable to our business could materially affect our credit ratings or could adversely affect our ability to raise short-term or long-term financing.
D.    We have disclosed information related to certain guarantees in Note 18 to our Consolidated Financial Statements.
E.    Written options on non-financial assets (for example, real estate puts). We do not have any written options on non-financial assets.

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OFF-BALANCE SHEET ARRANGEMENTS
Our disclosures concerning transactions, arrangements and other relationships with unconsolidated entities or other persons that are reasonably likely to materially affect liquidity or the availability of or requirements for capital resources are as follows:

•	We have disclosed in Note 18 to the Consolidated Financial Statements our buyback and residual value guaranty commitments.	

•	We lease various assets under operating leases. The future estimated payments under these arrangements are disclosed in Note 21 to the Consolidated Financial Statements and in the table below.	

•	We have disclosed our accounts receivable securitization arrangement in Note 12 to the Consolidated Financial Statements.	
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS
A summary of our significant contractual obligations as of December 31, 2012 is as follows:

																													
(in millions)	 	Total
Committed	 	2013	 	2014	 	2015	 	2016	 	2017	 	Thereafter	
Debt (including capital lease obligations)	 	$	1,824.8		 	$	92.8		 	$	40.1		 	$	39.9		 	$	232.3		 	$	81.8		 	$	1,337.9		
Interest on long-term debt (including capital lease obligations)	 	908.9		 	132.2		 	128.7		 	127.1		 	121.8		 	118.2		 	280.9		
Operating leases	 	207.2		 	50.8		 	40.5		 	32.3		 	27.5		 	21.4		 	34.7		
Purchase obligations	 	492.4		 	389.6		 	101.3		 	1.1		 	0.4		 	—		 	—		
Total committed	 	$	3,433.3		 	$	665.4		 	$	310.6		 	$	200.4		 	$	382.0		 	$	221.4		 	$	1,653.5		

•	Unrecognized tax liabilities totaling $47.3 million as of December 31, 2012 , excluding related interests and penalties, are not included in the table because the timing of their resolution cannot be estimated. See Note 13 to the Consolidated Financial Statements for disclosures surrounding uncertain income tax positions under ASC Topic 740.	
At December 31, 2012 , we had outstanding letters of credit that totaled $38.2 million .  We also had buyback commitments and residual value guarantees with a balance outstanding of $80.5 million as of December 31, 2012 .  This amount is not reduced for amounts the company would recover from the repossession and subsequent resale of collateral.
We maintain defined benefit pension plans for some of our operations in the United States, Europe and Asia. The company has established the Retirement Plan Committee to manage the operations and administration of all benefit plans and related trusts.  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.
In 2012 , cash contributions by us to all pension plans were $9.9 million , and we estimate that our pension plan contributions will be approximately $10.5 million in 2013.
Financial Risk Management
We are exposed to market risks from changes in interest rates, commodities, and changes in foreign currency exchange rates.  To reduce these risks, we selectively use derivative financial instruments and other proactive management techniques.  We have written policies and procedures that place financial instruments under the direction of corporate finance and restrict all derivative transactions to those intended for hedging purposes.  The use of financial instruments for trading purposes or speculation is strictly prohibited.
For a more detailed discussion of our accounting policies and the financial instruments that we use, please refer to Note 2, “Summary of Significant Accounting Policies,” and Note 11, “Debt,” to the Consolidated Financial Statements.
Interest Rate Risk
We are exposed to fluctuating interest rates for our debt.  We have established programs to mitigate exposure to these fluctuations.  The company is a party to various interest rate swaps or caps in connection with the Senior Credit Facility and the

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Senior Notes.  On May 13, 2011, the company entered into the Senior Credit Facility which includes a $350.0 million Term Loan A, $400.0 million Term Loan B and $500.0 million Revolver.  Subsequently, the company entered interest rate cap agreements during the third quarter 2011 with a beginning notional value of $450.0 million and reducing notional value over time based on our projections for pay down of Term Loan debt. These interest rate derivative instruments effectively cap the company’s future interest rate exposure for $450.0 million of the original notional value of its variable term debt at a one-month U.S. LIBOR rate of 3.00% plus the applicable spread per the Senior Credit Facility. As of December 31, 2012 , the notional value of these interest rate cap agreements was $225.0 million .
As of December 31, 2012 , the company did not have any float-to-fixed interest rate hedges outstanding on Term Loans A and B.  As of December 31, 2012 , total notional swapped from fixed-to-floating rate debt was $100.0 million for the 2022 Notes. The variable rate of interest on these fixed-to-float interest rate swaps was 4.31% at December 31, 2012 .
A 10% increase or decrease in the average cost of the company’s variable rate debt would result in an immaterial change in interest expense for the year ended December 31, 2012 .
Commodity Prices
We are exposed to fluctuating market prices for commodities, including steel, copper, aluminum, and petroleum-based products.  Each of our business segments is subject to the effect of changing raw material costs caused by movements in underlying commodity prices.  We have established programs to manage the negotiations of commodity prices.  Some of these programs are centralized across business segments, and others are specific to a business segment or business unit. In addition to the regular negotiations of material prices with certain vendors, we routinely enter into certain commodity hedges that fix the price of certain of our key commodities utilized in the production of our Foodservice and Crane product offerings.  Commodities that are hedged include copper, aluminum, certain steel inputs and natural gas.  At December 31, 2012 , $0.8 million (net of tax of $0.5 million ) of unrealized losses due to commodity hedging positions remain deferred in accumulated other comprehensive income and will be realized as a component of cost of sales over the next 12 months.
Currency Risk
We have manufacturing, sales and distribution facilities around the world and thus make investments and enter into transactions denominated in various foreign currencies.  International sales, including those sales that originated outside of the United States, were approximately 53% of our total sales for 2012 , with the largest percentage (20%) being sales into various European countries. 
Regarding transactional foreign exchange risk, we enter into limited forward exchange contracts to 1) reduce the impact of changes in foreign currency rates between a budgeted rate and the rate realized at the time we recognize a particular purchase or sale transaction and 2) reduce the earnings and cash flow impact on nonfunctional currency denominated receivables and payables.  Gains and losses resulting from hedging instruments either impact our Consolidated Statements of Operations in the period of the underlying purchase or sale transaction, or offset the foreign exchange gains and losses on the underlying receivables and payables being hedged.  The maturities of these forward exchange contracts coincide with either the underlying transaction date or the settlement date of the related cash inflow or outflow.  The hedges of anticipated transactions are designated as cash flow hedges under the guidance of Accounting Standards Codification ("ASC") Topic 815-10, “Derivatives and Hedging.”  At December 31, 2012 , we had outstanding forward exchange contracts hedging anticipated transactions and future settlements of outstanding accounts receivable and accounts payable with an after tax market value of a $2.2 million (net of tax of $1.4 million ) asset .  A 10% appreciation or depreciation of the underlying functional currency at December 31, 2012 for fair value hedges would not have a significant impact on our Consolidated Statements of Operations as any gains or losses under the foreign exchange contracts hedging accounts receivable or payable balances would be offset by equal gains or losses on the underlying receivables or payables.  A 10% appreciation or depreciation of the underlying functional currency at December 31, 2012 for cash flow hedges would not have a significant impact on the date of settlement due to the insignificant amounts of such hedges.
Amounts invested in non-U.S. based subsidiaries are translated into U.S. dollars at the exchange rate in effect at year-end.  Results of operations are translated into U.S. dollars at an average exchange rate for the period.  The resulting translation adjustments are recorded in stockholders’ equity as cumulative translation adjustments.  The translation adjustment recorded in accumulated other comprehensive income at December 31, 2012 was $50.3 million .
Environmental, Health, Safety, and Other Matters
Please refer to Part II, Item 8, Note 17, “Contingencies and Significant Estimates,” where we have disclosed our Environmental, Health, Safety, Contingencies and other Matters.

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Critical Accounting Policies
The Consolidated Financial Statements include the accounts of the company and all its subsidiaries. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying Consolidated Financial Statements and related footnotes. In preparing these Consolidated Financial Statements, we have made our best estimates and judgments of certain amounts included in the Consolidated Financial Statements giving due consideration to materiality. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ from these estimates. Although we have listed a number of accounting policies below which we believe to be most critical, we also believe that all of our accounting policies are important to the reader. Therefore, please refer also to the Notes to the Consolidated Financial Statements for more detailed description of these and other accounting policies of the company.
 
Revenue Recognition - Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of an arrangement exists, the price is fixed and determinable, collectability of cash is reasonably assured, and delivery has occurred or services have been rendered. We periodically enter into transactions with customers that provide for residual value guarantees and buyback commitments. These transactions are recorded as operating leases for all significant residual value guarantees and for all 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. In addition, we lease 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.
 
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 pre-established percentages to specific aging categories which are subject to change if experience improves or deteriorates.
 
Inventories and Related Reserve for Obsolete and Excess Inventory - Inventories are valued at the lower of cost or market using both the first-in, first-out (FIFO) method and the last-in, first-out (LIFO) method and are reduced by a reserve for excess and obsolete inventories. The estimated reserve is based upon specific identification of excess or obsolete inventories based on pre-established percentages applied to specific aging categories of inventory. These categories are evaluated based upon historical usage, estimated future usage, and sales requiring the inventory. These percentages were established based upon historical write-off experience and are subject to change if experience improves or deteriorates.
 
Goodwill, Other Intangible Assets and Other Long-Lived Assets - The company accounts for 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; however, the company performs an annual impairment review at June 30 of every year or more frequently if events or changes in circumstances indicate that the asset might be impaired. The company performs impairment reviews for its reporting units, which have been determined to be: Cranes Americas; Cranes Europe, Middle East, and Africa; Cranes China; Cranes Greater Asia Pacific; Crane Care; Foodservice Americas; Foodservice Europe, Middle East, and Africa; and Foodservice Asia, using a fair-value method, primarily the income approach, 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. Goodwill and other intangible assets are then subject to risk of write-down to the extent that the carrying amount exceeds the estimated fair value.

The company has not experienced any further impairment charges since March 2009 (see Note 9, "Goodwill and Other Intangible Assets"). The company will continue to monitor market conditions and determine if any additional interim reviews of goodwill, other intangibles or long-lived assets are warranted. Deterioration in the market or actual results as compared with the company's projections may ultimately result in a future impairment. In the event the company determines that assets are impaired in the future, the company would need to recognize a non-cash impairment charge, which could have a material adverse effect on the company's consolidated balance sheet and results of operations.
 
The company also 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

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with ASC Topic 360-10-5, "Property, Plant, and Equipment." 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.
 
Other intangible assets with definite lives continue to be amortized over their estimated useful lives. Indefinite and definite lived intangible assets are also subject to impairment testing. Indefinite lived assets are tested annually, or more frequently if events or changes in circumstances indicate that the assets might be impaired. Definite lived intangible assets are tested whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. A considerable amount of management judgment and assumptions are required in performing the impairment tests, principally in determining the fair value of the assets. While the company believes its judgments and assumptions were reasonable, different assumptions could change the estimated fair values and, therefore, impairment charges could be required.
 
Employee Benefit Plans - We provide a range of benefits to our employees and retired employees, including pensions and postretirement health care coverage. Plan assets and obligations are recorded annually based on the company's measurement date utilizing various actuarial assumptions such as discount rates, expected return on plan assets, compensation increases, retirement and mortality rates, and health care cost trend rates as of that date. The approach we use to determine the annual assumptions are as follows:
		
•	Discount Rate — Our discount rate assumptions are based on the interest rate of noncallable high-quality corporate bonds, with appropriate consideration of our pension plans’ participants’ demographics and benefit payment terms.	

•	Expected Return on Plan Assets — Our expected return on plan assets assumptions are based on our expectation of the long-term average rate of return on assets in the pension funds, which is reflective of the current and projected asset mix of the funds and considers the historical returns earned on the funds.	

•	Compensation increase — Our compensation increase assumptions reflect our long-term actual experience, the near-term outlook and assumed inflation	

•	Retirement and Mortality Rates — Our retirement and mortality rate assumptions are based primarily on actual plan experience and mortality tables.	

•	Health Care Cost Trend Rates — Our health care cost trend rate assumptions are developed based on historical cost data, near-term outlook and an assessment of likely long-term trends	
Measurements of net periodic benefit cost are based on the assumptions used for the previous year-end measurements of assets and obligations. We review our actuarial assumptions on an annual basis and make modifications to the assumptions when appropriate. As required by U.S. GAAP, the effects of the modifications are recorded currently or amortized over future periods. We have developed the assumptions with the assistance of our independent actuaries and other relevant sources, and we believe that the assumptions used are reasonable; however, changes in these assumptions could impact the company's financial position, results of operations or cash flows. Refer to Note 20, "Employee Benefit Plans," for a summary of the impact of a 0.50% change in the discount rate and rate of return on plan assets and a 1% change on health care trend rates would have on our financial statements.
 
Product Liability - We are subject in the normal course of business to product liability lawsuits. To the extent permitted under applicable laws, our exposure to losses from these lawsuits is mitigated by insurance with self-insurance retention limits. We record product liability reserves for our self-insured portion of any pending or threatened product liability actions. Our reserve is based upon two estimates. First, we track the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon our best judgment and the advice of legal counsel. These estimates are continually evaluated and adjusted based upon changes to the facts and circumstances surrounding the case. Second, we determine the amount of additional reserve required to cover incurred but not reported product liability issues and to account for possible adverse development of the established case reserves (collectively referred to as IBNR). This analysis is performed at least twice annually. We have established a position within the actuarially determined range, which we believe is the best estimate of the IBNR liability.
 
Income Taxes - We account for income taxes under the guidance of ASC Topic 740-10, "Income Taxes." Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We record a valuation allowance that represents a reserve on deferred tax assets for which utilization is not more-likely-than-not. Management judgment is required in

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determining our provision for income taxes, deferred tax assets and liabilities, and the valuation allowance recorded against our net deferred tax assets. Our policy is to remit earnings from foreign subsidiaries only when it would be tax effective through the utilization of foreign tax credits or when earnings qualify as previously taxed income. Accordingly, we do not currently provide for additional United States and foreign income taxes which would become payable upon repatriation of undistributed earnings of foreign subsidiaries. We measure and record income tax contingency accruals under the guidance of ASC Topic 740-10. We recognize liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more-likely-than-not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires us to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as we must determine the probability of various possible outcomes. We reevaluate these uncertain tax positions on a quarterly basis or when new information becomes available to management. These reevaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes, and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual.
 
Stock Compensation - The computation of the expense associated with stock-based compensation requires the use of certain valuation models and based on projected achievement of underlying performance criteria for performance shares. We currently use a Black-Scholes option pricing model to calculate the fair value of our stock options and Monte Carlo analysis to calculate the total shareholder return portion of performance shares. The Black-Scholes and Monte Carlo models require assumptions regarding the volatility of the company's stock, the expected life of the stock award and the company's dividend ratio. We primarily use historical data to determine the assumptions to be used in the Black-Scholes model and have no reason to believe that future data is likely to differ materially from historical data. However, changes in the assumptions to reflect future stock price volatility, future dividend payments and future stock award exercise experience could result in a change in the assumptions used to value awards in the future and may result in a material change to the fair value calculation of stock-based awards.

Warranties - In the normal course of business, we provide our customers warranties covering workmanship, and in some cases materials, on products manufactured by us. Such warranties generally provide that products will be free from defects for periods ranging from 12 months to 60 months with certain equipment having longer-term warranties. If a product fails to comply with our warranty, we may be obligated, at our expense, to correct any defect by repairing or replacing such defective product. We provide for an estimate of costs that may be incurred under our warranty at the time product revenue is recognized based on historical warranty experience for the related product or estimates of projected losses due to specific warranty issues on new products. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect our warranty liability include the number of shipped units and historical and anticipated rates or warranty claims. As these factors are impacted by actual experience and future expectations, we assess the adequacy of our recorded warranty liability and adjust the amounts as necessary.
 
Restructuring Charges - Restructuring charges for exit and disposal activities are recognized when the liability is incurred. The company accounts for restructuring charges under the guidance of ASC Topic 420-10, "Exit or Disposal Cost Obligations." The liability for the restructuring charge associated with an exit or disposal activity is measured initially at its fair value.
Recent Accounting Changes and Pronouncements
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The updated standard is prospectively effective for the company's annual and interim periods beginning after December 15, 2012. The adoption of this new ASU is not expected to impact the company's consolidated financial statements.
In July 2012, the FASB issued ASU 2012-02 which provides an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test for indefinite-lived intangible asset impairment.  If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required.  Otherwise, no further testing is required. The revised standard is effective for the company's annual and interim indefinite-lived intangible asset impairment tests performed for interim periods beginning after September 15, 2012.  The adoption of this ASU did not impact the company's consolidated financial statements.
In September 2011, the FASB issued ASU 2011-08 which provides an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test for goodwill impairment.  If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount,

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the quantitative impairment test is required.  Otherwise, no further testing is required. The revised standard is effective for the company's annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.  The adoption of this ASU did not impact the company's consolidated financial statements.
In June 2011 and December 2011, the FASB issued an update to ASC Topic No. 220, “Presentation of Comprehensive Income,” which eliminates the option to present other comprehensive income and its components in the statement of shareholders’ equity. The company can elect to present the items of net income and other comprehensive income in a single continuous statement of comprehensive income or in two separate, but consecutive, statements. Under either method the statement would need to be presented with equal prominence as the other primary financial statements. The amended guidance, which must be applied retroactively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, and has been incorporated into these financial statements.
Cautionary Statements about Forward-Looking Information
Statements in this report and in other company communications that are not historical facts are forward-looking statements, which are based upon our current expectations, within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements involve risks and uncertainties that could cause actual results to differ materially from what appears within this quarterly report.

Forward-looking statements include descriptions of plans and objectives for future operations, and the assumptions behind those plans. The words “anticipates,” “believes,” “intends,” “estimates,” “targets” and “expects,” or similar expressions, usually identify forward-looking statements. Any and all projections of future performance are forward-looking statements.

In addition to the assumptions, uncertainties, and other information referred to specifically in the forward-looking statements, a number of factors relating to each business segment could cause actual results to be significantly different from what is presented in this quarterly report. Those factors include, without limitation, the following:

Crane-cyclicality of the construction industry; the effects of government spending on construction-related projects throughout the world; unanticipated changes in global demand for high-capacity lifting equipment; changes in demand for lifting equipment in emerging economies; the replacement cycle of technologically obsolete cranes; and demand for used equipment.

Foodservice-weather; global expansion of customers; commercial ice-cube machine and other foodservice equipment replacement cycles in the United States and other mature markets; unanticipated issues associated with refresh/renovation plans by national restaurant accounts and global chains; growth in demand for foodservice equipment by customers in emerging markets; and demand for quick service restaurants (QSR) chains and kiosks.

Corporate (including factors that may affect both of our segments)-changes in laws and regulations, as well as their enforcement, throughout the world; the ability to finance, complete, successfully integrate, and/or transition, restructure and consolidate acquisitions, divestitures, strategic alliances and joint ventures; in connection with acquisitions, divestitures, strategic alliances and joint ventures, the finalization of the price and other terms, the realization of contingencies consistent with any established reserves, unanticipated issues associated with transitional services, realization of anticipated earnings enhancements, cost savings, strategic options and other synergies, and the anticipated timing to realize those savings, synergies, and options; the successful development of innovative products and market acceptance of new and innovative products; issues related to plant closings and/or consolidation of existing facilities; issues related to new plant start-ups; efficiencies and capacity utilization of facilities; competitive pricing; availability of certain raw materials; changes in raw materials and commodity prices; unexpected issues associated with the quality of materials and components sourced from third parties and resolution of those issues; issues associated with new product introductions; matters impacting the successful and timely implementation of ERP systems; changes in domestic and international economic and industry conditions, including steel industry conditions; changes in the markets we serve; unexpected issues associated with the availability of local suppliers and skilled labor; changes in the interest rate environment; risks associated with growth; foreign currency fluctuations and their impact on reported results and hedges in place; world-wide political risk; geographic factors and economic risks; pressure of additional financing leverage; success in increasing manufacturing efficiencies and capacities; unanticipated changes in revenue, margins, costs and capital expenditures; work stoppages, labor negotiations, rates and temporary labor; issues associated with workforce reductions and subsequent ramp-up; actions of competitors; unanticipated changes in consumer spending; the ability of our customers to obtain financing; the state of financial and credit markets; the ability to generate cash and manage working capital consistent with our stated goals; non-compliance with debt covenants; unexpected issues affecting the effective tax rate for the year; unanticipated issues associated with the resolution or settlement of uncertain tax positions; unfavorable resolution of a tax matter with the IRS related to the calendar years 2008 and 2009; unanticipated changes in customer demand; the ability to increase operational efficiencies across each of the company's business segments and capitalize

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on those efficiencies; the ability to capitalize on key strategic opportunities; natural disasters disrupting commerce in one or more regions of the world; and other events outside our control.

Item 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See Liquidity and Capital Resources, and Risk Management in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a description of the quantitative and qualitative disclosure about market risk.

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Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Consolidated Financial Statements and Financial Statement Schedule:

	
			
Financial Statements:	
 	 	
 	Report of Independent Registered Public Accounting Firm	
 	 	
 	Consolidated Statements of Operations	
 	 	
 	Consolidated Statements of Comprehensive Income (Loss)	
 	 	
 	Consolidated Balance Sheets	
 	 	
 	Consolidated Statements of Cash Flows	
 	 	
 	Consolidated Statements of Equity	
 	 	
 	Notes to Consolidated Financial Statements	
 	 	
Financial Statement Schedule:	
 	 	
 	Schedule II — Valuation and Qualifying Accounts	

All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

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Report of Independent Registered Public Accounting Firm
To the Stockholders and Board of Directors of The Manitowoc Company, Inc.:
In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material respects, the financial position of The Manitowoc Company, Inc. and its subsidiaries at December 31, 2012 and 2011, and the results of their operations and cash flows for each of the three years in the period ended December 31, 2012 in conformity with accounting principles generally accepted in the United States of America.  In addition, in our opinion, the financial statement schedule listed in the accompanying index presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.  Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2012, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).  The Company’s management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A.  Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company’s internal control over financial reporting based on our integrated audits.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects.  Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.  Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.  Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

		
/s/ PricewaterhouseCoopers LLP	 	
Milwaukee, Wisconsin	 	
February 28, 2013	 	

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The Manitowoc Company, Inc.
Consolidated Statements of Operations
For the years ended December 31, 2012, 2011 and 2010

												
Millions of dollars, except per share data	2012	 	2011	 	2010	
Operations	 	 	 	 	 	
Net sales	$	3,927.0		 	$	3,619.2		 	$	3,111.5		
Costs and expenses:	 		 	 		 	 		
Cost of sales	2,992.6		 	2,792.5		 	2,352.1		
Engineering, selling and administrative expenses	603.5		 	565.4		 	508.9		
Amortization expense	37.1		 	37.9		 	37.4		
Restructuring expense	9.5		 	5.5		 	3.8		
Other expenses (income)	2.5		 	(0.5	)	 	2.3		
Total costs and expenses	3,645.2		 	3,400.8		 	2,904.5		
Operating earnings from continuing operations	281.8		 	218.4		 	207.0		
Other income (expenses):	 		 	 		 	 		
Interest expense	(137.1	)	 	(146.7	)	 	(175.0	)	
Amortization of deferred financing fees	(8.2	)	 	(10.4	)	 	(22.0	)	
Loss on debt extinguishment	(6.3	)	 	(29.7	)	 	(44.0	)	
Other income (expense)-net	0.1		 	2.3		 	(9.0	)	
Total other expenses	(151.5	)	 	(184.5	)	 	(250.0	)	
Earnings (loss) from continuing operations before taxes on earnings	130.3		 	33.9		 	(43.0	)	
Provision for taxes on earnings	38.0		 	13.6		 	26.2		
Earnings (loss) from continuing operations	92.3		 	20.3		 	(69.2	)	
Discontinued operations:	 		 	 		 	 		
Earnings (loss) from discontinued operations, net of income taxes of $0.2, ($2.6) and $1.7, respectively	0.3		 	(3.4	)	 	(8.1	)	
Loss on sale of discontinued operations, net of income taxes of $0.0, $29.9 and $0.0, respectively	—		 	(34.6	)	 	—		
Net earnings (loss)	92.6		 	(17.7	)	 	(77.3	)	
Less: Net loss attributable to noncontrolling interest, net of tax	(9.1	)	 	(6.5	)	 	(2.7	)	
Net earnings (loss) attributable to Manitowoc	$	101.7		 	$	(11.2	)	 	$	(74.6	)	
Amounts attributable to the Manitowoc common shareholders:	 		 	 		 	 		
Earnings (loss) from continuing operations	$	101.4		 	$	26.8		 	$	(66.5	)	
Loss from discontinued operations, net of income taxes	0.3		 	(3.4	)	 	(8.1	)	
Loss on sale of discontinued operations, net of income taxes	—		 	(34.6	)	 	—		
Net earnings (loss) attributable to Manitowoc	$	101.7		 	$	(11.2	)	 	$	(74.6	)	
Per Share Data	 		 	 		 	 		
Basic earnings (loss) per common share:	 		 	 		 	 		
Earnings (loss) from continuing operations attributable to Manitowoc common shareholders	$	0.77		 	$	0.21		 	$	(0.51	)	
Earnings (loss) from discontinued operations attributable to Manitowoc common shareholders	—		 	(0.03	)	 	(0.06	)	
Loss on sale of discontinued operations, net of income taxes	—		 	(0.27	)	 	—		
Earnings (loss) per share attributable to Manitowoc common shareholders	$	0.77		 	$	(0.09	)	 	$	(0.57	)	
Diluted earnings (loss) per common share:	 		 	 		 	 		
Earnings (loss) from continuing operations attributable to Manitowoc common shareholders	$	0.76		 	$	0.20		 	$	(0.51	)	
Loss from discontinued operations attributable to Manitowoc common shareholders	—		 	(0.03	)	 	(0.06	)	
Loss on sale of discontinued operations, net of income taxes	—		 	(0.26	)	 	—		
Earnings (loss) per share attributable to Manitowoc common shareholders	$	0.76		 	$	(0.08	)	 	$	(0.57	)	
 
The accompanying notes are an integral part of these financial statements.

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The Manitowoc Company, Inc.
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31, 2012, 2011 and 2010

	
													
Millions of dollars	 	2012	 	2011	 	2010	
 	 	 	 	 	 	 	
Net earnings (loss)	 	$	92.6		 	$	(17.7	)	 	$	(77.3	)	
Other comprehensive income (loss), net of tax	 	 	 	 	 	 	
Foreign currency translation adjustments	 	8.3		 	(10.9	)	 	(33.4	)	
Derivative instrument fair market value adjustment, net of income taxes of $2.6, $2.2, and $(3.3), respectively.	 	5.2		 	4.0		 	(6.1	)	
Employee pension and postretirement benefits, net of income taxes of $(0.5), $(9.7), and $(6.7), respectively.	 	(18.1	)	 	(18.0	)	 	(12.4	)	
 	 	 	 	 	 	 	
Total other comprehensive loss, net of tax	 	(4.6	)	 	(24.9	)	 	(51.9	)	
 	 	 	 	 	 	 	
Comprehensive income (loss)	 	88.0		 	(42.6	)	 	(129.2	)	
 	 	 	 	 	 	 	
Comprehensive loss attributable to noncontrolling interest	 	(9.1	)	 	(6.5	)	 	(2.7	)	
 	 	 	 	 	 	 	
Comprehensive income (loss) attributable to Manitowoc	 	$	97.1		 	$	(36.1	)	 	$	(126.5	)	

The accompanying notes are an integral part of these financial statements.

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The Manitowoc Company, Inc.
Consolidated Balance Sheets
As of December 31, 2012 and 2011

									
Millions of dollars, except shares data	 	2012	 	2011	
Assets	 	 		 	 		
Current Assets:	 	 		 	 		
Cash and cash equivalents	 	$	73.4		 	$	68.6		
Marketable securities	 	2.7		 	2.7		
Restricted cash	 	10.6		 	7.2		
Accounts receivable, less allowances of $13.5 and $12.8, respectively	 	332.7		 	294.5		
Inventories — net	 	707.6		 	662.3		
Deferred income taxes	 	89.0		 	116.7		
Other current assets	 	105.2		 	77.8		
Current assets of discontinued operation	 	6.8		 	7.1		
Total current assets	 	1,328.0		 	1,236.9		
Property, plant and equipment — net	 	556.1		 	564.5		
Goodwill	 	1,210.7		 	1,208.0		
Other intangible assets — net	 	796.4		 	831.6		
Other non-current assets	 	130.3		 	144.5		
Long-term assets of discontinued operation	 	35.8		 	37.1		
Total assets	 	$	4,057.3		 	$	4,022.6		
Liabilities and Equity	 	 		 	 		
Current Liabilities:	 	 		 	 		
Accounts payable and accrued expenses	 	$	912.9		 	$	864.2		
Short-term borrowings	 	92.8		 	79.1		
Product warranties	 	82.1		 	93.1		
Customer advances	 	24.2		 	35.1		
Product liabilities	 	27.9		 	26.8		
Current liabilities of discontinued operation	 	6.0		 	5.2		
Total current liabilities	 	1,145.9		 	1,103.5		
Non-Current Liabilities:	 	 		 	 		
Long-term debt	 	1,732.0		 	1,810.9		
Deferred income taxes	 	223.0		 	258.2		
Pension obligations	 	114.3		 	90.6		
Postretirement health and other benefit obligations	 	53.4		 	59.8		
Long-term deferred revenue	 	37.7		 	34.2		
Other non-current liabilities	 	161.1		 	175.6		
Long-term liabilities of discontinued operation	 	8.6		 	8.7		
Total non-current liabilities	 	2,330.1		 	2,438.0		
Commitments and contingencies (Note 17)	 			 			
Total Equity:	 	 		 	 		
Common stock (300,000,000 shares authorized, 163,175,928 shares issued, 132,769,478 and 131,884,765 shares outstanding, respectively)	 	1.4		 	1.4		
Additional paid-in capital	 	486.9		 	466.6		
Accumulated other comprehensive income (loss)	 	(29.4	)	 	(24.8	)	
Retained earnings	 	222.1		 	131.0		
Treasury stock, at cost (30,406,450 and 31,291,163 shares, respectively)	 	(80.7	)	 	(83.2	)	
Total Manitowoc stockholders’ equity	 	600.3		 	491.0		
Noncontrolling interest	 	(19.0	)	 	(9.9	)	
Total equity	 	581.3		 	481.1		
Total liabilities and equity	 	$	4,057.3		 	$	4,022.6		

 The accompanying notes are an integral part of these financial statements.

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The Manitowoc Company, Inc.
Consolidated Statements of Cash Flows
For the years ended December 31, 2012, 2011, and 2010

												
Millions of dollars	2012	 	2011	 	2010	
Cash Flows From Operations	 		 	 		 	 		
Net earnings (loss)	$	92.6		 	$	(17.7	)	 	$	(77.3	)	
Adjustments to reconcile net earnings to cash provided by operating activities of continuing operations:			 	 		 	 		
Discontinued operations, net of income taxes	(0.3	)	 	3.4		 	8.1		
Depreciation	69.5		 	81.5		 	86.5		
Amortization of intangible assets	37.1		 	37.9		 	37.4		
Amortization of deferred financing fees	8.2		 	10.4		 	22.0		
Deferred income taxes	(8.5	)	 	24.5		 	25.4		
Loss on early extinguishment of debt	6.3		 	29.7		 	44.0		
Loss (gain) on sale of property, plant and equipment	3.0		 	(2.2	)	 	(3.3	)	
Loss on sale of discontinued operations	—		 	34.6		 	—		
Other	16.4		 	13.7		 	8.4		
Changes in operating assets and liabilities, excluding the effects of business acquisitions or dispositions:	 		 	 		 	 		
Accounts receivable	(35.6	)	 	(98.2	)	 	17.9		
Inventories	(41.0	)	 	(111.9	)	 	0.8		
Other assets	(1.9	)	 	(1.2	)	 	29.8		
Accounts payable	25.7		 	98.6		 	46.2		
Accrued expenses and other liabilities	(12.4	)	 	(70.6	)	 	(43.4	)	
Net cash provided by operating activities of continuing operations	159.1		 	32.5		 	202.5		
Net cash provided by (used for) operating activities of discontinued operations	3.2		 	(16.9	)	 	6.8		
Net cash provided by operating activities	162.3		 	15.6		 	209.3		
Cash Flows From Investing	 		 	 		 	 		
Capital expenditures	(72.9	)	 	(64.8	)	 	(35.9	)	
Proceeds from sale of property, plant and equipment	0.9		 	17.5		 	23.2		
Restricted cash	(3.3	)	 	2.2		 	(3.0	)	
Business acquisitions, net of cash acquired	—		 	—		 	(4.8	)	
Proceeds from sale of business	—		 	143.6		 	—		
Net cash (used for) provided by investing activities of continuing operations	(75.3	)	 	98.5		 	(20.5	)	
Net cash used for investing activities of discontinued operations	(0.2	)	 	(0.1	)	 	(4.4	)	
Net cash (used for) provided by investing activities	(75.5	)	 	98.4		 	(24.9	)	
Cash Flows From Financing	 		 	 		 	 		
Proceeds from (payments on) revolving credit facility-net	34.4		 	(24.2	)	 	24.2		
Proceeds from swap monetization	14.8		 	21.5		 	—		
Payments on long-term debt	(495.4	)	 	(960.3	)	 	(1,250.8	)	
Proceeds from long-term debt	383.3		 	845.0		 	1,063.0		
Proceeds from securitization facility	—		 	—		 	101.0		
(Payments on) securitization facility	—		 	—		 	(101.0	)	
(Payments on) proceeds from notes financing - net	(10.4	)	 	14.8		 	(4.1	)	
Debt issuance costs	(5.7	)	 	(14.7	)	 	(27.0	)	
Dividends paid	(10.6	)	 	(10.6	)	 	(10.6	)	
Exercises of stock options including windfall tax benefits	6.4		 	2.6		 	0.9		
Net cash used for financing activities	(83.2	)	 	(125.9	)	 	(204.4	)	
Effect of exchange rate changes on cash	1.2		 	(3.2	)	 	—		
Net increase (decrease) in cash and cash equivalents	4.8		 	(15.1	)	 	(20.0	)	
Balance at beginning of year	68.6		 	83.7		 	103.7		
Balance at end of year	$	73.4		 	$	68.6		 	$	83.7		
Supplemental Cash Flow Information	 		 	 		 	 		
Interest paid	$	137.7		 	$	154.1		 	$	159.3		
Income taxes paid (refunded)	$	18.8		 	$	24.2		 	$	(40.4	)	
 
The accompanying notes are an integral part of these financial statements.

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The Manitowoc Company, Inc.
Consolidated Statements of Equity
For the years ended December 31, 2012, 2011 and 2010

												
Millions of dollars, except shares data	2012	 	2011	 	2010	
Common Stock - Shares Outstanding	 		 	 		 	 		
Balance at beginning of year	131,884,765		 	131,388,472		 	130,708,124		
Stock options exercised	699,913		 	244,923		 	166,718		
Restricted stock	184,800		 	251,370		 	513,630		
Balance at end of year	132,769,478		 	131,884,765		 	131,388,472		
Common Stock - Par Value	 		 	 		 	 		
Balance at beginning of year	$	1.4		 	$	1.4		 	$	1.4		
Balance at end of year	$	1.4		 	$	1.4		 	$	1.4		
Additional Paid-in Capital	 		 	 		 	 		
Balance at beginning of year	$	466.6		 	$	450.6		 	$	442.3		
Stock options exercised and issuance of other stock awards	2.0		 	0.2		 	(0.7	)	
Restricted stock expense	4.5		 	4.0		 	2.6		
Windfall tax benefit on stock options exercised	1.9		 	0.8		 	(0.2	)	
Performance shares	5.2		 	4.1		 	—		
Stock option expense	6.7		 	6.9		 	6.6		
Balance at end of year	$	486.9		 	$	466.6		 	$	450.6		
Accumulated Other Comprehensive Income (Loss)	 		 	 		 	 		
Balance at beginning of year	$	(24.8	)	 	$	0.1		 	$	52.0		
Other comprehensive loss	(4.6	)	 	(24.9	)	 	(51.9	)	
Balance at end of year	$	(29.4	)	 	$	(24.8	)	 	$	0.1		
Retained Earnings	 		 	 		 	 		
Balance at beginning of year	$	131.0		 	$	152.8		 	$	238.0		
Net earnings (loss)	101.7		 	(11.2	)	 	(74.6	)	
Cash dividends	(10.6	)	 	(10.6	)	 	(10.6	)	
Balance at end of year	$	222.1		 	$	131.0		 	$	152.8		
Treasury Stock	 		 	 		 	 		
Balance at beginning of year	$	(83.2	)	 	$	(84.7	)	 	$	(86.3	)	
Stock options exercised and issuance of other stock awards	2.5		 	1.5		 	1.6		
Balance at end of year	$	(80.7	)	 	$	(83.2	)	 	$	(84.7	)	
Equity attributable to Manitowoc shareholders	$	600.3		 	$	491.0		 	$	520.2		
Noncontrolling Interest	 		 	 		 	 		
Balance at beginning of year	(9.9	)	 	(3.4	)	 	(0.7	)	
Comprehensive loss attributable to noncontrolling interest	(9.1	)	 	(6.5	)	 	(2.7	)	
Balance at end of year	$	(19.0	)	 	$	(9.9	)	 	$	(3.4	)	
Total equity	$	581.3		 	$	481.1		 	$	516.8		
 
The accompanying notes are an integral part of these financial statements.

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Notes to Consolidated Financial Statements

1. Company and Basis of Presentation
Company The Manitowoc Company, Inc. (referred to as the company, MTW, Manitowoc we, our, and us) was founded in 1902. We are a multi-industry, capital goods manufacturer operating in two principal markets: Cranes and Related Products (Crane) and Foodservice Equipment (Foodservice). Crane is recognized as one of the world’s leading providers of engineered lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. Foodservice is one of the world’s leading innovators and manufacturers of commercial foodservice equipment serving the ice, beverage, refrigeration, food-preparation, and cooking needs of restaurants, convenience stores, hotels, healthcare, and institutional applications. We have over a 110-year tradition of providing high-quality, customer-focused products and support services to our markets.
Our Crane business is a global provider of engineered lift solutions, offering one of the broadest product lines of lifting equipment in our industry.  We design, manufacture, market, and support a comprehensive line of lattice boom crawler cranes, mobile telescopic cranes, tower cranes, and boom trucks.  Our Crane products are principally marketed under the Manitowoc, Grove, Potain, National, Shuttlelift, Dongyue, and Crane Care brand names and 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.
Our Foodservice business is among the world’s leading designers and manufacturers of commercial foodservice equipment.  Our Foodservice capabilities span refrigeration, ice-making, cooking, food-preparation, and beverage-dispensing technologies, and allow us to be able to equip entire commercial kitchens and serve the world’s growing demand for food prepared away from home.  Our Foodservice products are marketed under the Manitowoc, Garland, U.S. Range, Convotherm, Cleveland, Lincoln, Merrychef, Frymaster, Delfield, Kolpak, Kysor Panel, Servend, Multiplex, and Manitowoc Beverage System brand names.
During the fourth quarter of 2012, the company decided to divest its warewashing equipment business, which operated under the brand name Jackson, and classified this business as discontinued operations in the company's financial statements. Jackson designs, manufactures and sells warewashing equipment, offering a full range of undercounter dishwashers, door-type dishwashers, conveyor, pot washing, and flight-type dishwashers. On January 28, 2013, the company sold the Jackson warewashing equipment business to Hoshizaki USA Holdings, Inc. for approximately $38.5 million . Net proceeds were used to reduce ratably the then-outstanding balances of Term Loan A and B.
On December 15, 2010, the company reached a definitive agreement to divest of its Kysor/Warren and Kysor/Warren de Mexico businesses to Lennox International for approximately $145 million .  The transaction subsequently closed on January 14, 2011 and the net proceeds were used to pay down outstanding debt.  The results of these operations have been classified as discontinued operations.
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.  Certain prior period amounts have been reclassified to conform to the current period presentation. The results of the Jackson business have been classified as discontinued operations in all periods presented.
Revision of prior period financial statements During the third quarter of 2012, the company identified errors related to its deferred tax and goodwill accounts that originated in connection with certain acquisitions five to eleven years ago, resulting in an increase to deferred tax assets, goodwill, and deferred tax liabilities in the amounts of $4.0 million , $64.9 million , and $50.9 million at December 31, 2011, respectively, and a cumulative overstatement of income tax expense of $18.0 million through December 31, 2011. During the fourth quarter of 2012, the company also identified a classification error between goodwill and accumulated other comprehensive income accounts with respect to pensions and postretirement health and other benefits in relation to a certain acquisition completed in 2008, amounting to $8.6 million at December 31, 2011. The company had previously identified an error related to the overstatement of inventory and understatement of cost of goods sold in the amount of $2.9 million for the year ended December 31, 2011 that had been corrected as an out-of-period adjustment in the second quarter of 2012. As the company adjusted the 2011 financial statements for the errors listed above, the company also made the adjustment for this inventory item in 2011. The company does not believe these errors to be material individually or in the

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aggregate to the company's results of operations, financial position, or cash flows for any of the company's previously filed annual or quarterly financial statements. Accordingly, the Consolidated Statement of Operations for the years ended December 31, 2011 and 2010 and the Consolidated Balance Sheet as of December 31, 2011, included herein have been revised to correct these errors. In addition, the quarterly information for 2012 and 2011 has been revised. See Note 24, "Quarterly Financial Data (Unaudited)" for further discussion of the quarterly revisions. The impacts of these revisions are as follows:

									
(in millions)	 	As of December 31, 2011	
Consolidated Balance Sheets:	 	As Reported	 	As Revised*	
Inventories - net	 	$	668.7		 	$	665.8		
Other non-current assets	 	140.6		 	144.6		
Goodwill	 	1,164.8		 	1,221.1		
Accounts payable and accrued expenses	 	869.8		 	868.7		
Deferred income taxes (non-current liability)	 	215.8		 	266.7		
Total equity	 	$	473.5		 	$	481.1		

																	
 	 	For the years ended December 31,	
(in millions, except per share data)	 	2011	 	2010	
Consolidated Statements of Operations:	 	As Reported	 	As Revised*	 	As Reported	 	As Revised*	
Cost of sales	 	$	2,813.9		 	$	2,816.8		 	$	—		 	$	—		
Earnings from continuing operations before taxes on earnings	 	37.4		 	34.5		 	—		 	—		
Provision for taxes on earnings	 	15.9		 	13.7		 	30.9		 	26.0		
Earnings (loss) from continuing operations	 	21.5		 	20.8		 	(74.6	)	 	(69.7	)	
Net loss	 	(17.0	)	 	(17.7	)	 	(82.2	)	 	(77.3	)	
Net loss attributable to Manitowoc	 	$	(10.5	)	 	$	(11.2	)	 	$	(79.5	)	 	$	(74.6	)	
Basic earnings (loss) per share from continuing operations	 	$	—		 	$	—		 	$	(0.55	)	 	$	(0.51	)	
Diluted earnings (loss) per share from continuing operations	 	0.21		 	0.20		 	(0.55	)	 	(0.51	)	
Basic loss per share	 	(0.08	)	 	(0.09	)	 	(0.61	)	 	(0.57	)	
Diluted earnings (loss) per share	 	$	—		 	$	—		 	$	(0.61	)	 	$	(0.57	)	
* The "As Revised" figures noted above have not been adjusted for the results of the Jackson business, which has been classified as discontinued operations for all periods presented. See further detail at Note 4, "Discontinued Operations."
2. Summary of Significant Accounting Policies
Cash Equivalents, Restricted Cash and Marketable Securities All short-term investments purchased with an original maturity of three months or less are considered cash equivalents.  Marketable securities at December 31, 2012 and 2011 are recorded at fair value and include securities which are considered “available for sale.”  The difference between fair market value and cost of these investments was not significant for either year.  Restricted cash represents cash in escrow funds related to the security for an indemnity agreement for our casualty insurance provider as well as funds held in escrow to support certain international cash pooling programs.
Inventories Inventories are valued at the lower of cost or market value.  Approximately 88% and 89% of the company’s inventories at December 31, 2012 and 2011 , respectively, were valued using the first-in, first-out (FIFO) method.  The remaining inventories were valued using the last-in, first-out (LIFO) method.  If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $36.6 million and $31.4 million at December 31, 2012 and 2011 , respectively.  Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs.
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

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tested for impairment annually, 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 over the following estimated useful lives:

		
 	Useful lives	
Patents	10-20 years	
Engineering drawings	15 years	
Customer relationships	10-20 years	
Property, Plant and Equipment Property, plant and equipment are stated at cost.  Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred.  Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and 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 - 15	
Computer hardware and software	2 - 7	
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 rental equipment included in property, plant and equipment amounted to $58.9 million and $76.2 million , net of accumulated depreciation, at December 31, 2012 and 2011 , 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 analyses 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.
Each year, in its second quarter, the company tests for impairment of goodwill 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

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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.  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 issues and to account for possible adverse development of the established case reserves (collectively referred to as IBNR).  This analysis is performed at least twice annually. 
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 part of a hedge transaction and if so, the type of hedge transaction.
During 2012 , 2011 and 2010 , 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 exchange currency exchange contracts and commodity 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 swaps, 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.

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Stock-Based Compensation At December 31, 2012 , the company has five stock-based compensation plans, which are described more fully in Note 16, “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.  The company recognized $4.5 million , $4.0 million and $2.6 million of compensation expense related to restricted stock during the years ended December 31, 2012 , 2011 and 2010 , respectively. In addition to the compensation expense related to restricted stock, the company recognized $6.7 million , $6.9 million and $6.6 million of compensation expense related to stock options during the years ended December 31, 2012 , 2011 and 2010 , respectively.  The company also recognized $5.2 million and $4.1 million of compensation expense associated with performance shares in 2012 and 2011 , respectively.
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 crane 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 18, “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 $87.7 million , $80.6 million and $72.2 million for the years ended December 31, 2012 , 2011 and 2010 , 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.  Currently, 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, large companies in the foodservice and beverage 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 February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. The updated standard is prospectively effective for the company's annual and interim periods beginning after December 15, 2012. The adoption of this new ASU is not expected to impact the company's consolidated financial statements.

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In July 2012, the FASB issued ASU 2012-02 which provides an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test for indefinite-lived intangible asset impairment.  If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required.  Otherwise, no further testing is required. The revised standard is effective for the company's annual and interim indefinite-lived intangible asset impairment tests performed for interim periods beginning after September 15, 2012.  The adoption of this ASU did not have a material impact on the company's consolidated financial statements.
In September 2011, the FASB issued ASU 2011-08 which provides an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test for goodwill impairment.  If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required.  Otherwise, no further testing is required. The revised standard is effective for the company's annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011.  The adoption of this ASU did not impact the company's consolidated financial statements.
In June 2011 and December 2011, the FASB issued an update to ASC Topic No. 220, “Presentation of Comprehensive Income,” which eliminates the option to present other comprehensive income and its components in the statement of shareholders’ equity. The company can elect to present the items of net income and other comprehensive income in a single continuous statement of comprehensive income or in two separate, but consecutive, statements. Under either method the statement would need to be presented with equal prominence as the other primary financial statements. The amended guidance, which must be applied retroactively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, and has been incorporated into these financial statements.
3. Acquisitions
On March 1, 2010, the company acquired 100% of the issued and to be issued shares of Appliance Scientific, Inc. (ASI).  ASI is a leader in accelerated cooking technologies.  Allocation of the purchase price resulted in $5.0 million of goodwill, $18.2 million of intangible assets and an estimated liability for future earnouts of $1.8 million .  In accordance with guidance primarily codified in ASC Topic 805, “Business Combinations,” any future adjustment to the estimated earnout liability would be recognized in the earnings of that period.  The results of ASI have been included in the Foodservice segment since the date of acquisition.
4. Discontinued Operations
During the fourth quarter of 2012, the company decided to divest its warewashing equipment business, which operated under the brand name Jackson, and classified this business as discontinued operations in the company's financial statements. Jackson designs, manufactures and sells warewashing equipment, offering a full range of undercounter dishwashers, door-type dishwashers, conveyor, pot washing, and flight-type dishwashers. On January 28, 2013, the company sold the Jackson warewashing equipment business to Hoshizaki USA Holdings, Inc. for approximately $38.5 million . Net proceeds were used to reduce ratably the then-outstanding balances of Term Loan A and B.
The following selected financial data of the Jackson business for the years ended December 31, 2012 , 2011 and 2010 is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the business operated as a stand-alone entity.  There was no general corporate expense or interest expense allocated to discontinued operations for this business during the periods presented. 

													
(in millions)	 	2012	 	2011	 	2010	
Net sales	 	$	32.6		 	$	32.7		 	$	30.2		
 	 	 	 	 	 	 	
Pretax earnings (loss) from discontinued operation	 	$	1.7		 	$	0.6		 	$	(0.8	)	
Provision (benefit) for taxes on earnings	 	0.7		 	0.1		 	(0.3	)	
Net earnings (loss) from discontinued operation	 	$	1.0		 	$	0.5		 	$	(0.5	)	
On December 15, 2010, the company announced that a definitive agreement had been reached to divest its Kysor/Warren and Kysor/Warren de Mexico (collectively “Kysor/Warren”) businesses, which manufacture frozen, medium temperature and heated display merchandisers, mechanical refrigeration systems and remote mechanical and electrical houses to Lennox International for approximately $145 million , including a preliminary working capital adjustment.  The transaction subsequently closed on January 14, 2011, resulting in a $34.6 million loss on sale, primarily consisting of $29.9 million of

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income tax expense, and the net proceeds were used to pay down outstanding debt.  On July 1, 2011, the company made a payment to Lennox International of $2.4 million as the final working capital adjustment under the sale agreement.  The results of these operations have been classified as discontinued operations. 
The following selected financial data of the Kysor/Warren businesses for the years ended December 31, 2012 , 2011 and 2010 is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the businesses operated as a stand-alone entity.  There was no general corporate expense or interest expense allocated to discontinued operations for this business during the periods presented. 

													
(in millions)	 	2012	 	2011	 	2010	
Net sales	 	$	—		 	$	6.5		 	$	216.4		
 	 	 	 	 	 	 	
Pretax loss from discontinued operation	 	$	(0.8	)	 	$	(5.4	)	 	$	(4.6	)	
Provision (benefit) for taxes on earnings	 	(0.3	)	 	(2.2	)	 	2.2		
Net loss from discontinued operation	 	$	(0.5	)	 	$	(3.2	)	 	$	(6.8	)	
In addition to the Enodis ice and related businesses, the company has classified various businesses disposed of prior to 2009 as discontinued in compliance with ASC Topic 360-10, “Property, Plant, and Equipment.”
The following selected financial data of various businesses disposed of prior to 2010, primarily consisting of administrative costs, for the years ended December 31, 2012 , 2011 and 2010 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.  There was no general corporate expense or interest expense allocated to discontinued operations for these businesses during the periods presented. 

													
(in millions)	 	2012	 	2011	 	2010	
Net sales	 	$	—		 	$	—		 	$	—		
 	 	 	 	 	 	 	
Pretax loss from discontinued operation	 	$	(0.4	)	 	$	(1.2	)	 	$	(1.0	)	
Provision (benefit) for taxes on earnings	 	(0.2	)	 	(0.5	)	 	(0.2	)	
Net loss from discontinued operation	 	$	(0.2	)	 	$	(0.7	)	 	$	(0.8	)	
 
5. 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, 2012 and 2011 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.

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 	 	Fair Value as of December 31, 2012	
(in millions)	 	Level 1	 	Level 2	 	Level 3	 	Total	
Current Assets:	 	 		 	 		 	 		 	 		
Foreign currency exchange contracts	 	$	—		 	$	2.9		 	$	—		 	$	2.9		
Marketable securities	 	2.7		 	—		 	—		 	2.7		
Total Current assets at fair value	 	$	2.7		 	$	2.9		 	$	—		 	$	5.6		
 	 	 	 	 	 	 	 	 	
Current Liabilities:	 	 		 	 		 	 		 	 		
Foreign currency exchange contracts	 	$	—		 	$	0.9		 	$	—		 	$	0.9		
Commodity contracts	 	—		 	0.8		 	—		 	0.8		
Interest rate swap contracts	 	—		 	0.3		 	—		 	0.3		
Total Current liabilities at fair value	 	$	—		 	$	2.0		 	$	—		 	$	2.0		
 	 	 	 	 	 	 	 	 	
Non-current Liabilities:	 	 		 	 		 	 		 	 		
Interest rate swap contracts	 	$	—		 	$	1.1		 	$	—		 	$	1.1		
Total Non-current liabilities at fair value	 	$	—		 	$	1.1		 	$	—		 	$	1.1		

																	
 	 	Fair Value as of December 31, 2011	
(in millions)	 	Level 1	 	Level 2	 	Level 3	 	Total	
Current Assets:	 	 		 	 		 	 		 	 		
Foreign currency exchange contracts	 	$	—		 	$	0.8		 	$	—		 	$	0.8		
Marketable securities	 	2.7		 	—		 	—		 	2.7		
Total Current assets at fair value	 	$	2.7		 	$	0.8		 	$	—		 	$	3.5		
 	 	 	 	 	 	 	 	 	
Non-current Assets:	 	 	 	 	 	 	 	 	
Interest rate swap contracts	 	$	—		 	$	0.5		 	$	—		 	$	0.5		
Interest rate cap contracts	 	—		 	0.3		 	—		 	0.3		
Total Non-current assets at fair value	 	$	—		 	$	0.8		 	$	—		 	$	0.8		
 	 	 	 	 	 	 	 	 	
Current Liabilities:	 	 		 	 		 	 		 	 		
Foreign currency exchange contracts	 	$	—		 	$	6.7		 	$	—		 	$	6.7		
Commodity contracts	 	—		 	2.4		 	—		 	2.4		
Total Current liabilities at fair value	 	$	—		 	$	9.1		 	$	—		 	$	9.1		
 	 	 	 	 	 	 	 	 	
Non-current Liabilities:	 	 		 	 		 	 		 	 		
Interest rate swap contracts	 	$	—		 	$	9.5		 	$	—		 	$	9.5		
Total Non-current liabilities at fair value	 	$	—		 	$	9.5		 	$	—		 	$	9.5		
The company’s 2013 Notes were redeemed in the fourth quarter of 2012 and had a fair value of approximately $146.6 million for the year ended December 31, 2011 .  The fair value of the company’s 2018 Notes was approximately $447.5 million and $434.0 million as of December 31, 2012 and 2011 , respectively.  The fair value of the company’s 2020 Notes was approximately $675.0 million and $634.9 million as of December 31, 2012 and 2011 , respectively.  The fair value of the company's 2022 Notes was approximately $307.5 million as of December 31, 2012 . The fair values of the company’s term loans under the Senior Credit Facility are as follows as of December 31, 2012 and 2011 , respectively:  Term Loan A — $296.0 million and $318.6 million and Term Loan B — $81.4 million and $324.1 million as of December 31, 2012 and 2011 , respectively.  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:

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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; though these markets are typically thinly traded, the liabilities are therefore 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, 2012 and December 31, 2011 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 our 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 using broker quotations. As such, these derivative instruments are classified within Level 2.
6. 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 interest rate risk, commodity price risk and foreign currency exchange risk.  Interest rate swap or cap instruments are entered into to help manage interest rate or fair value 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 interest rate derivative contracts as cash flow hedges of forecasted purchases of commodities and currencies, and fixed or 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

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earnings.  In the next twelve months the company estimates $0.9 million of unrealized losses, net of tax, related to interest rate, 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 risk management objective for the company’s fair market value interest rate hedges is 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 U.S. LIBOR rate.  These swaps include 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 swap are expected to offset changes in the fair value of the debt due to changes in the one-month U.S. LIBOR rate.
As of December 31, 2012 , the company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions:

							
Commodity	 	Units Hedged	 	 	 	Type	
Aluminum	 	1,382	 	MT	 	Cash Flow	
Copper	 	515	 	MT	 	Cash Flow	
Natural Gas	 	158,670	 	MMBtu	 	Cash Flow	
Steel	 	10,041	 	Short Tons	 	Cash Flow	

					
Short Currency	 	Units Hedged	 	Type	
Canadian Dollar	 	9,351,126	 	Cash Flow	
European Euro	 	66,389,190	 	Cash Flow	
South Korean Won	 	2,595,874,455	 	Cash Flow	
Singapore Dollar	 	4,800,000	 	Cash Flow	
United States Dollar	 	2,398,273	 	Cash Flow	
Chinese Renminbi	 	187,640,472	 	Cash Flow	
As of June 30, 2011, the company offset, dedesignated, and wrote-off all of its previous float-to-fixed interest rate swaps against Term Loans A and B interest due to the amendment of its original Senior Credit Facility (See Note 11, "Debt," for a description of the Senior Credit Facility).  As of December 31, 2012 , the company had outstanding $225.0 million notional amount of 3.00% LIBOR caps related to the term loan portion of the Senior Credit Facility which effectively cap the company’s future interest rate exposure for the notional value of its variable term debt at a one-month LIBOR rate of 3.00% . The company paid various bank partners $0.7 million in option premium to purchase the protection on Term Loans A and B and is amortizing the related derivative asset to interest expense over the life of the cap protection.  The caps were designated as a hedge so any change in value of the derivative is booked to other comprehensive income.  The remaining unhedged portions of Term Loans A and B continue to bear interest according to the terms of the Senior Credit Facility.
The company is also party to various fixed-to-float interest rate swaps designated as fair market value hedges of its 2018, 2020, and 2022 Notes.  At December 31, 2011 , $200.0 million and $300.0 million of the 2018 and 2020 Notes, respectively, were swapped to floating rate interest. The company monetized the derivative asset related to its fixed-to-float interest rate swaps due in 2018 and 2020 and received $21.5 million in the third quarter of 2011. The gain was treated as an increase to the debt balances for the 2018 and 2020 Notes and will be amortized against interest expense over the life of the original swap. Later in 2011, the company subsequently entered into new interest rate swaps due in 2018 and 2020.
In the third quarter of 2012, the company further 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. Consistent with prior year monetization, the company treated the gain as an increase to the debt balances for each of the 2018 and 2020 notes, which will be amortized against interest expense over the life of the original swaps.
In the fourth quarter of 2012, the company purchased and designated new fixed-to-float swaps as fair market value hedges of the 2022 Notes.  At December 31, 2012 , $100.0 million of the 2022 Notes were swapped to floating rate interest.  Including the floating rate swaps, the 2022 Notes have an all-in interest rate of 5.353% .
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 Cost of Sales or Other income, net in the Condensed Consolidated

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Statement of Operations. As of December 31, 2012 , the company had the following outstanding currency forward contracts that were not designated as hedging instruments:

							
Short Currency	 	Units Hedged	 	Recognized Location	 	Purpose	
Euro	 	24,540,841	 	Other income, net	 	Accounts payable and receivable settlement	
United States Dollar	 	6,432,000	 	Other income, net	 	Accounts payable and receivable settlement	
Pound Sterling	 	11,100,000	 	Other 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, 2012 was as follows:

					
 	ASSET DERIVATIVES	
(in millions)	Balance Sheet Location	Fair Value	
Derivatives designated as hedging instruments	 	 		
Foreign exchange contracts	Other current assets	$	2.6		
Total derivatives designated as hedging instruments	 	$	2.6		

	
					
 	ASSET DERIVATIVES	
(in millions)	Balance Sheet Location	Fair Value	
Derivatives NOT designated as hedging instruments	 	 		
Foreign exchange contracts	Other current assets	$	0.3		
Total derivatives NOT designated as hedging instruments	 	$	0.3		
 	 	 		
Total asset derivatives	 	$	2.9		
The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2012 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	$	0.4		
Interest rate swap contracts: Fixed-to-float	Other non-current liabilities	1.1		
Commodity contracts	Accounts payable and accrued expenses	0.8		
Total derivatives designated as hedging instruments	 	$	2.3		

					
 	LIABILITY DERIVATIVES	
(in millions)	Balance Sheet Location	Fair Value	
Derivatives NOT designated as hedging instruments	 	 		
Foreign exchange contracts	Accounts payable and accrued expenses	$	0.5		
Interest rate swap contracts: Float-to-fixed	Accounts payable and accrued expenses	0.3		
Total derivatives NOT designated as hedging instruments	 	$	0.8		
 	 	 		
Total liability derivatives	 	$	3.1		
The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2012 and gains or losses initially recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet was as follows: 

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Derivatives in Cash Flow Hedging
Relationships (in millions)	 	Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)	 	Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)	 	Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)	
Foreign exchange contracts	 	$	4.2		 	Cost of sales	 	$	(7.3	)	
Interest rate swap & cap contracts	 	(0.2	)	 	Interest expense	 	0.1		
Commodity contracts	 	1.0		 	Cost of sales	 	(2.7	)	
Total	 	$	5.0		 	 	 	$	(9.9	)	

					
Derivatives Relationships (in millions)	Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)	Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)	
Commodity contracts	Cost of sales	$	—		
Total	 	$	—		

					
Derivatives Not Designated as
Hedging Instruments (in millions)	Location of Gain or (Loss)
Recognized in Income on
Derivative	Amount of Gain or (Loss)
Recognized in Income on
Derivative	
Foreign exchange contracts	Other income	$	1.2		
Interest rate swap contracts	Other income	9.3		
Total	 	$	10.5		

	
					
Derivatives Designated as Fair
Market Value Instruments under
ASC 815 (in millions)	Location of Gain or (Loss)
Recognized in Income on
Derivative	Amount of Gain or (Loss)
Recognized in Income on
Derivative	
Interest rate swap contracts	Interest expense	$	(1.7	)	
Total	 	$	(1.7	)	
 
As of December 31, 2011 , the company had the following outstanding interest rate, commodity and currency forward contracts that were entered into as hedge forecasted transactions:

							
Commodity	 	Units Hedged	 	 	 	Type	
Aluminum	 	1,254	 	MT	 	Cash Flow	
Copper	 	684	 	MT	 	Cash Flow	
Natural Gas	 	346,902	 	MMBtu	 	Cash Flow	
Steel	 	8,231	 	Short Tons	 	Cash Flow	

					
Short Currency	 	Units Hedged	 	Type	
Canadian Dollar	 	25,083,644	 	Cash Flow	
European Euro	 	67,565,453	 	Cash Flow	
South Korean Won	 	3,224,015,436	 	Cash Flow	
Singapore Dollar	 	4,800,000	 	Cash Flow	
United States Dollar	 	5,538,777	 	Cash Flow	
Chinese Renminbi	 	111,177,800	 	Cash Flow	
As of December 31, 2011 , the designated fair market value hedges of receive-fixed/pay-float swaps of the 2018 Notes and 2020 Notes were $200.0 million and $300.0 million , respectively. Including the floating rate swaps, the 2018 and 2020 Notes had all-in interest rates of 8.88% and 7.66% , respectively.
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 Cost of Sales or Other income, net.

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Short Currency	 	Units Hedged	 	Recognized Location	 	Purpose	
Euro	 	33,150,213	 	Other income, net	 	Accounts Payable and Receivable Settlement	
United States Dollar	 	6,000,000	 	Other income, net	 	Accounts Payable and Receivable Settlement	
Australian Dollar	 	7,569,912	 	Other 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, 2011 was as follows:

					
 	ASSET DERIVATIVES	
(in millions)	Balance Sheet Location	Fair Value	
Derivatives designated as hedging instruments	 	 		
Foreign Exchange Contracts	Other current assets	$	0.6		
Interest rate swap contracts: Fixed-to-float	Other non-current assets	0.5		
Interest rate cap contracts	Other non-current assets	0.3		
Total derivatives designated as hedging instruments	 	$	1.4		

					
 	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	 	$	1.5		
The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2011 was as follows:

						
 	LIABILITIES DERIVATIVES	
 (in millions)	Balance Sheet Location	 	Fair Value	
Derivatives designated as hedging instruments	 	 	 		
Foreign Exchange Contracts	Accounts payable and accrued expenses	 	$	5.2		
Commodity Contracts	Accounts payable and accrued expenses	 	2.5		
Total derivatives designated as hedging instruments	 	 	$	7.7		

	
					
 	LIABILITY DERIVATIVES	
(in millions)	Balance Sheet Location	Fair Value	
Derivatives NOT designated as hedging instruments	 	 		
Foreign Exchange Contracts	Accounts payable and accrued expenses	$	1.6		
Interest Rate Swap Contracts: Float-to-Fixed	Accounts payable and accrued expenses	9.5		
Total derivatives NOT designated as hedging instruments	 	$	11.1		
 	 	 		
Total liability derivatives	 	$	18.8		
The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2011 and gains or losses initially recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet was as follows: 

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Derivatives in Cash Flow Hedging
Relationships (in millions)	 	Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)	 	Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)	 	Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)	
Foreign Exchange Contracts	 	$	(3.7	)	 	Cost of sales	 	$	2.5		
Interest Rate Swap & Cap Contracts	 	1.3		 	Interest expense	 	(5.3	)	
Commodity Contracts	 	(2.1	)	 	Cost of sales	 	(0.3	)	
Total	 	$	(4.5	)	 	 	 	$	(3.1	)	

							
Derivatives in Fair Value Hedging
Relationships (in millions)	 	Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)	 	Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective
Portion and Amount
Excluded from Effectiveness
Testing)	
Commodity Contracts	 	Cost of sales	 	$	(0.1	)	
Total	 	 	 	$	(0.1	)	

							
Derivatives Not Designated as Hedging
Instruments (in millions)	 	Location of Gain or (Loss)
recognized in Income on
Derivative	 	Amount of Gain or (Loss)
Recognized in Income on
Derivative	
Foreign Exchange Contracts	 	Other income	 	$	(2.0	)	
Interest Rate Swap Contracts	 	Other income	 	4.8		
Total	 	 	 	$	2.8		

					
Derivatives Designated as Fair
Market Value Instruments under
ASC 815 (in millions)	Location of Gain or (Loss)
Recognized in Income on
Derivative	Amount of Gain or (Loss)
Recognized in Income on
Derivative	
Interest rate swap contracts	Interest expense	$	22.3		
Total	 	$	22.3		
 
The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2010 and gains or losses initially recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet was as follows: 

											
Derivatives in Cash Flow Hedging
Relationships (in millions)	 	Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)	 	Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)	 	Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)	
Foreign Exchange Contracts	 	$	0.2		 	Cost of sales	 	$	(4.0	)	
Interest Rate Swap & Cap Contracts	 	(6.7	)	 	Interest expense	 	(10.4	)	
Commodity contracts	 	(0.4	)	 	Cost of sales	 	1.1		
Total	 	$	(6.9	)	 	 	 	$	(13.3	)	

							
Derivatives in Fair Value Hedging
Relationships (in millions)	 	Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)	 	Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective
Portion and Amount
Excluded from Effectiveness
Testing)	
Interest Rate Swap Contracts	 	Interest Expense	 	$	(21.8	)	
Total	 	 	 	$	(21.8	)	

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Derivatives Not Designated as Hedging
Instruments (in millions)	 	Location of Gain or (Loss)
recognized in Income on
Derivative	 	Amount of Gain or (Loss)
Recognized in Income on
Derivative	
Foreign Exchange Contracts	 	Other income	 	$	0.5		
Total	 	 	 	$	0.5		
7. Inventories
The components of inventories at December 31, 2012 and December 31, 2011 are summarized as follows:

									
(in millions)	 	2012	 	2011	
Inventories — gross:	 	 		 	 		
Raw materials	 	$	231.1		 	$	244.2		
Work-in-process	 	149.7		 	167.7		
Finished goods	 	437.6		 	356.6		
Total inventories — gross	 	818.4		 	768.5		
Excess and obsolete inventory reserve	 	(74.2	)	 	(74.8	)	
Net inventories at FIFO cost	 	744.2		 	693.7		
Excess of FIFO costs over LIFO value	 	(36.6	)	 	(31.4	)	
Inventories — net	 	$	707.6		 	$	662.3		
8. Property, Plant and Equipment
The components of property, plant and equipment at December 31, 2012 and December 31, 2011 are summarized as follows:

									
(in millions)	 	2012	 	2011	
Land	 	$	43.4		 	$	49.2		
Building and improvements	 	362.7		 	335.2		
Machinery, equipment and tooling	 	503.2		 	487.7		
Furniture and fixtures	 	48.6		 	48.7		
Computer hardware and software	 	113.8		 	82.2		
Rental cranes	 	86.2		 	109.3		
Construction in progress	 	66.0		 	79.4		
Total cost	 	1,223.9		 	1,191.7		
Less accumulated depreciation	 	(667.8	)	 	(627.2	)	
Property, plant and equipment-net	 	$	556.1		 	$	564.5		
9. Goodwill and Other Intangible Assets
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2012 and December 31, 2011 are as follows:

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(in millions)	 	Crane	 	Foodservice	 	Total	
Gross balance as of January 1, 2011	 	$	343.9		 	$	1,388.2		 	$	1,732.1		
Restructuring reserve adjustment	 	—		 	(3.0	)	 	(3.0	)	
Foreign currency impact	 	(5.1	)	 	(0.3	)	 	(5.4	)	
Gross balance as of December 31, 2011	 	$	338.8		 	$	1,384.9		 	$	1,723.7		
Asset impairments	 	—		 	(515.7	)	 	(515.7	)	
Net balance as of December 31, 2011	 	$	338.8		 	$	869.2		 	$	1,208.0		
 	 	 	 	 	 	 	
Restructuring reserve adjustment	 	—		 	(0.6	)	 	(0.6	)	
Foreign currency impact	 	2.9		 	0.4		 	3.3		
Gross balance as of December 31, 2012	 	$	341.7		 	$	1,384.7		 	$	1,726.4		
Asset impairments	 	—		 	(515.7	)	 	(515.7	)	
Net balance as of December 31, 2012	 	$	341.7		 	$	869.0		 	$	1,210.7		
The company accounts for 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; however, the company performs an annual impairment assessment at June 30 of every year or more frequently if events or changes in circumstances indicate that the asset might be impaired. The company performs impairment reviews for its reporting units, which are Cranes Americas; Cranes Europe, Middle East, and Africa; Cranes Greater Asia Pacific; Cranes China; Crane Care; Foodservice Americas; Foodservice Europe, Middle East, and Africa; and Foodservice Asia.  In its impairment reviews, the company uses 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. For goodwill, the estimated fair value is then compared with the carrying amount of the reporting unit, including recorded goodwill.  Goodwill and other intangible assets are then subject to risk of write-down to the extent that the carrying amount exceeds the estimated fair value.
As of June 30, 2012 and June 30, 2011, the company performed its annual impairment analysis and noted no indicators of impairment.
The company believed the classification of its Kysor/Warren and Kysor/Warren de Mexico businesses as discontinued operations during the fourth quarter of 2010 represented a triggering event and therefore the company performed an impairment analysis on its Foodservice Americas reporting unit.  The analysis did not indicate an impairment.
A considerable amount of management judgment and assumptions are required in performing the impairment tests, principally in determining the fair value of the assets. While the company believes its judgments and assumptions were reasonable, different assumptions could change the estimated fair values and, therefore, impairment charges could be required.
The company will continue to monitor market conditions and determine if any additional interim reviews of goodwill, other intangibles or long-lived assets are warranted.  Further deterioration in the market or actual results as compared with the company’s projections may ultimately result in a future impairment.  In the event the company determines that assets are impaired in the future, the company would need to recognize a non-cash impairment charge, which could have a material adverse effect on the company’s consolidated balance sheet and results of operations.

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The gross carrying amount and accumulated amortization of the company’s intangible assets other than goodwill are as follows as of December 31, 2012 and December 31, 2011 .

																									
 	 	December 31, 2012	 	December 31, 2011	
(in millions)	 	Gross
Carrying
Amount	 	Accumulated
Amortization
Amount	 	Net
Book
Value	 	Gross
Carrying
Amount	 	Accumulated
Amortization
Amount	 	Net
Book
Value	
Trademarks and tradenames	 	$	309.4		 	$	—		 	$	309.4		 	$	308.1		 	$	—		 	$	308.1		
Customer relationships	 	426.7		 	(94.1	)	 	332.6		 	426.9		 	(72.1	)	 	354.8		
Patents	 	33.6		 	(26.1	)	 	7.5		 	33.1		 	(23.3	)	 	9.8		
Engineering drawings	 	11.1		 	(8.1	)	 	3.0		 	11.1		 	(7.3	)	 	3.8		
Distribution network	 	20.6		 	—		 	20.6		 	20.4		 	—		 	20.4		
Other intangibles	 	178.2		 	(54.9	)	 	123.3		 	177.3		 	(42.6	)	 	134.7		
 	 	$	979.6		 	$	(183.2	)	 	$	796.4		 	$	976.9		 	$	(145.3	)	 	$	831.6		
Amortization expense for the years ended December 31, 2012 , 2011 and 2010 was $37.1 million , $37.9 million and $37.4 million , respectively.  Excluding the impact of any future acquisitions or divestitures, the Company anticipates amortization for years 2013, 2014, 2015, 2016 and 2017 will be approximately $38 million , $38 million , $37 million , $35 million and $34 million , respectively.
10. Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses at December 31, 2012 and December 31, 2011 are summarized as follows:

									
(in millions)	 	2012	 	2011	
Trade accounts payable and interest payable	 	$	510.2		 	$	480.1		
Employee related expenses	 	96.9		 	95.8		
Restructuring expenses	 	25.3		 	21.9		
Profit sharing and incentives	 	42.9		 	33.1		
Accrued rebates	 	39.7		 	38.2		
Deferred revenue - current	 	29.5		 	27.0		
Derivative liabilities	 	1.9		 	18.8		
Income taxes payable	 	37.6		 	—		
Miscellaneous accrued expenses	 	128.9		 	149.3		
 	 	$	912.9		 	$	864.2		
11. Debt
Outstanding debt at December 31, 2012 and December 31, 2011 is summarized as follows:

									
(in millions)	 	2012	 	2011	
Revolving credit facility	 	$	34.4		 	$	—		
Term loan A	 	297.5		 	332.5		
Term loan B	 	81.0		 	332.0		
Senior notes due 2013	 	—		 	150.0		
Senior notes due 2018	 	410.5		 	407.7		
Senior notes due 2020	 	621.2		 	613.5		
Senior notes due 2022	 	298.9		 	—		
Other	 	81.3		 	54.3		
Total debt	 	1,824.8		 	1,890.0		
Less current portion and short-term borrowings	 	(92.8	)	 	(79.1	)	
Long-term debt	 	$	1,732.0		 	$	1,810.9		

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The company’s Senior Credit Facility originally became effective November 6, 2008. On May 13, 2011, the company amended and extended the maturities of its senior credit facility and entered into a $1,250.0 million Second Amended and Restated Credit Agreement (the “Senior Credit Facility”).
The Senior Credit Facility includes three different loan facilities.  The first is a revolving facility in the amount of $500.0 million , with a term of five years.  The second facility is an amortizing Term Loan A facility in the aggregate amount of $350.0 million with a term of five years.  The third facility is an amortizing Term Loan B facility in the amount of $400.0 million with a term of 6.5 years.  Including interest rate caps at December 31, 2012 , the weighted average interest rates for the Term Loan A and the Term Loan B loans were 3.25% and 4.25% , respectively.  Excluding interest rate caps, Term Loan A and Term Loan B interest rates were 3.25% and 4.25% respectively, at December 31, 2012 . The weighted average interest rates for the term loans at December 31, 2012 including and excluding the impact of the interest rate caps were the same because the relevant one-month U.S. LIBOR rate was below the 3.00% cap level.
The revolving facility under the Senior Credit Facility has a maximum borrowing capacity of $500.0 million and expires in May 2016. As of December 31, 2012 , the company had $34.4 million in borrowings on the revolving facility. During the year, the highest daily borrowing was $299.9 million and the average borrowing was $141.2 million , while the average interest rate was 3.50% . The interest rate fluctuates based upon LIBOR or a Prime rate plus a spread which is based upon the Consolidated Total Leverage Ratio of the company. As of December 31, 2012 , the spreads for LIBOR and Prime borrowings were 2.75% and 1.75% , respectively given the effective Consolidated Total Leverage Ratio for this period.
The Senior Credit Facility contains financial covenants including (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) consolidated earnings before interest, taxes, depreciation and amortization, and other adjustments (EBITDA), as defined in the credit agreement to (ii) consolidated cash interest expense, each for the most recent four fiscal quarters, and (b) a Consolidated Senior Secured Leverage Ratio, which measure the ratio of (i) consolidated senior secured indebtedness to (ii) consolidated EBITDA for the most recent four fiscal quarters.  The current covenant levels of the financial covenants under the Senior Credit Facility are as set forth below:

					
Fiscal Quarter Ending	 	Consolidated Senior
Secured Leverage
Ratio
(less than)	 	Consolidated Interest
 Coverage Ratio
(greater than)	
December 31, 2012	 	3.50:1.00	 	2.00:1.00	
March 31, 2013	 	3.50:1.00	 	2.25:1.00	
June 30, 2013	 	3.25:1.00	 	2.25:1.00	
September 30, 2013	 	3.25:1.00	 	2.50:1.00	
December 31, 2013	 	3.25:1.00	 	2.50:1.00	
March 31, 2014	 	3.25:1.00	 	2.75:1.00	
June 30, 2014	 	3.25:1.00	 	2.75:1.00	
September 30, 2014	 	3.25:1.00	 	2.75:1.00	
December 31, 2014, and thereafter	 	3.00:1.00	 	3.00:1.00	
The loss on debt extinguishment of $6.3 million during the year ended December 31, 2012 consisted entirely of the write-off of deferred financing fees. The loss on debt extinguishment of $29.7 million during the year ended December 31, 2011 consisted of $16.1 million related to the write-off of deferred financing fees and $13.6 million related to the unwinding of related interest rate swaps.  The loss on debt extinguishment of $44.0 million for the year ended December 31, 2010 consisted entirely of the write-off of deferred financing fees.
The Senior Credit Facility includes customary representations and warranties and events of default and customary covenants, including without limitation (i)  a requirement that the company prepay the term loan facilities from the net proceeds of asset sales, casualty losses, equity offerings, and new indebtedness for borrowed money, and from a portion of its excess cash flow, subject to certain exceptions; and (ii) limitations on indebtedness, capital expenditures, restricted payments, and acquisitions.
The company has three series of Senior Notes outstanding, including the 2018, 2020, and 2022 Notes (collectively the “Senior Notes”).  Each series of Senior Notes are unsecured senior obligations ranking subordinate to all existing senior secured indebtedness and equal to all existing senior unsecured obligations.  Each series of Senior Notes is guaranteed by certain of the company’s wholly owned domestic subsidiaries, which subsidiaries also guaranty the company’s obligations under the Senior Credit Facility.  Each series of Senior Notes contains affirmative and negative covenants which limit, among other things, the company’s ability to redeem or repurchase its debt, incur additional debt, make acquisitions, merge with other entities, pay

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dividends or distributions, repurchase capital stock, and create or become subject to liens.  Each series of Senior Notes also includes customary events of default. If an event of default occurs and is continuing with respect to the Senior Notes, then the Trustee or the holders of at least 25% of the principal amount of the outstanding Senior Notes may declare the principal and accrued interest on all of the Senior Notes to be due and payable immediately. In addition, in the case of an event of default arising from certain events of bankruptcy, all unpaid principal of, and premium, if any, and accrued and unpaid interest on all outstanding Senior Notes will become due and payable immediately. 
On October 19, 2012, the company completed the sale of $300.0 million aggregate principal amount of its 5.875% Senior Notes due October 2022 (the "2022 Notes") at an issue price of 100% . Net proceeds from the 2022 Notes were used to redeem the entire $150.0 million aggregate principal amount of its 2013 Notes, to repay $36.0 million of Term Loan B, and to repay a portion of the outstanding revolver borrowings under its Senior Credit Facility. Interest on the 2022 Notes is payable semi-annually on April 15 and October 15 of each year.
The following would be the principal and premium paid by the company, expressed as percentages of the principal amount thereof, if it redeems the 2022 Notes during the 12-month period commencing on October 15 of the year set forth below:

			
Year	Percentage	
2017	102.938	%	
2018	101.958	%	
2019	100.979	%	
2020 and thereafter	100.000	%	
In addition, at any time prior to October 15, 2015, the company is permitted to, at its option, use the net cash proceeds of one or more public equity offers to redeem up to 35% of the 2022 Notes at a redemption price of 105.875% , plus accrued but unpaid interest, if any, to the date of redemption; provided that (1) at least 65% of the principal amount of the 2022 Notes outstanding remains outstanding immediately after any such redemption; and (2) the company makes such redemptions not more than 90 days after the consummation of any such public offering. Further, the company is required to offer to repurchase the 2022 Notes for cash at a price of 101% of the aggregate principal amount of the 2022 Notes, plus accrued and unpaid interest, if any, upon the occurrence of a change of control triggering event.
On February 3, 2010, the company completed the sale of $400.0 million aggregate principal amount of its 9.50% Senior Notes due 2018 (the “2018 Notes”). Net proceeds of $392.0 million from this offering were used to partially pay down ratably the then outstanding balances on Term Loan A and Term Loan B.  Interest on the 2018 Notes is payable semiannually in February and August of each year.  The 2018 Notes may be redeemed in whole or in part by the company for a premium at any time on or after February 15, 2014.  The following would be the premium paid by the company, expressed as a percentage of the principal amount, if it redeems the 2018 Notes during the 12-month period commencing on February 15 of the year set forth below:

			
Year	Percentage	
2014	104.750	%	
2015	102.375	%	
2016 and thereafter	100.000	%	
In addition, at any time, or from time to time, on or prior to February 15, 2013, the company may, at its option, use the net cash proceeds of one or more public equity offerings to redeem up to 35% of the principal amount of the 2018 Notes outstanding at a redemption price of 109.5% of the principal amount thereof plus accrued and unpaid interest thereon, if any, to the date of redemption; provided that (1)   at least 65% of the principal amount of the 2018 Notes outstanding remains outstanding immediately after any such redemption; and (2)the company makes such redemption not more than 90 days after the consummation of any such public offering.
On October 18, 2010, the company completed the sale of $600.0 million aggregate principal amount of its 8.50% Senior Notes due 2020 (the “2020 Notes”). Net proceeds of $583.7 million from this offering were used to pay down ratably the then outstanding balances of Term Loan A and Term Loan B.  Interest on the 2020 Notes is payable semi-annually in May and November of each year. 
The following would be the principal and premium paid by the company, expressed as percentages of the principal amount thereof, if it redeems the 2020 Notes during the 12-month period commencing on November 1 of the year set forth below: 

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Year	Percentage	
2015	104.250	%	
2016	102.833	%	
2017	101.417	%	
2018 and thereafter	100.000	%	
In addition, at any time prior to November 1, 2013, the company may, at its option, use the net cash proceeds of one or more public equity offerings to redeem up to 35% of the 2020 Notes at a redemption price of 108.5% , plus accrued but unpaid interest, if any, to the date of redemption; provided that (1)   at least 65% of the principal amount of the 2020 Notes outstanding remains outstanding immediately after any such redemption; and (2)the company makes such redemption not more than 90 days after the consummation of any such public offering.
In the third quarter of 2011, the company monetized the derivative asset related to the fixed-to-float interest rate swaps in connection with the 2018 and 2020 Notes and received $21.5 million . The gain was treated as an increase to the debt balances for the 2018 and 2020 Notes and will amortized to interest expense over the life of the original swap. Later in the year, the company entered new interest rate swaps due in 2018 and 2020.
In the third quarter of 2012, the company further monetized the derivative asset related to the fixed-to-float interest rate swaps related to its 2018 and 2020 Notes and received $14.8 million . Consistent with the prior year monetization, the company treated the gain as an increase to the debt balances for each of the 2018 and 2020 Notes, which will be amortized to interest expense over the life of the original swaps.
The balance sheet values of the 2018, 2020, and 2022 Notes at December 31, 2012 and December 31, 2011 are not equal to the face value of the Senior Notes due to the fact that the fair market value of the interest rate hedges and interest rate monetization premiums on these Senior Notes are included in the balance sheet value.
As of December 31, 2012 , the company had outstanding $81.3 million of other indebtedness that has a weighted-average interest rate of approximately 6.47% .  This debt includes outstanding overdraft balances and capital lease obligations in its Americas, Asia-Pacific and European regions.
The aggregate scheduled maturities of outstanding debt obligations in subsequent years are as follows:

				
(in millions)	 	
2013	$	92.8		
2014	40.1		
2015	39.9		
2016	232.3		
2017	81.8		
Thereafter	1,337.9		
Total	$	1,824.8		
 
See Note 6, “Derivative Financial Instruments” for a description of hedging instruments used related to managing interest rate risk. 
As of December 31, 2012 , the company was in compliance with all affirmative and negative covenants in its debt instruments inclusive of the financial covenants pertaining to the Senior Credit Facility, the 2018 Notes, 2020 Notes, and 2022 Notes.  Based upon our current plans and outlook, we believe we will be able to comply with these covenants during the subsequent 12 months. As of December 31, 2012 our Consolidated Senior Secured Leverage Ratio was 1.61 : 1 , while the maximum ratio is 3.500 : 1 and our Consolidated Interest Coverage Ratio was 3.03 : 1 , above the minimum ratio of 2.000 : 1 .
12. Accounts Receivable Securitization
On September 26, 2012, the company entered into a Fourth Amended and Restated Receivables Purchase Agreement among Manitowoc Funding, LLC (“U.S. Seller”) and Manitowoc Cayman Islands Funding Ltd. (“Cayman Seller”), as sellers, the Company, Garland Commercial Ranges Limited (“Garland”), Convotherm Elektrogeräte GmbH (“Convotherm”), and the other persons from time to time party thereto, as servicers, and Wells Fargo Bank, N.A. (“Wells Fargo” or "Purchaser"), as purchaser and agent (the “Receivables Purchase Agreement”).  Pursuant to this amendment, (i) the commitment size of this facility

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increased from up to $125 million to up to $150 million ; (ii) Wells Fargo was added as purchaser and agent, replacing Hannover Funding Company, LLC, and Norddeutsche Landesbank Girozentrale, respectively; (iii) the facility commitment was extended for a three -year period; and (iv) the company's cost of funds decreased through the use of a LIBOR index rate plus a 1.45% fixed spread for three years (as opposed to using an underlying commercial paper rate, as was previously the case).
Under the Receivables Purchase Agreement (and the related Purchase and Sale Agreements referenced therein), the Company's domestic trade accounts receivable are sold to U.S. Seller which, in turn, sells, conveys, transfers and assigns to a third-party financial institution (“Purchaser”), all of the U.S. Sellers' right, title and interest in and to a pool of receivables to the Purchaser. Certain of the company's non-U.S. trade accounts receivable are sold to Cayman Seller which, in turn, will sell, convey, transfer and assign to Purchaser, all of Cayman Seller's right, title and interest in and to a pool of receivables to the Purchaser.
The Purchaser receives ownership of the pool of receivables, in each instance. New receivables are purchased by U.S. Seller or Cayman Seller, as applicable, and resold to the Purchaser as cash collections reduce previously sold investments. The Manitowoc Company, Inc., Garland, and Convotherm act as the servicers of the receivables and as such administer, collect and otherwise enforce the receivables. The servicers are compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. As servicers, they initially receive payments made by obligors on the receivables but are required to remit those payments to the Purchaser in accordance with the Receivables Purchase Agreement. The Purchaser has no recourse for uncollectible receivables. The securitization program also contains customary affirmative and negative covenants. Among other restrictions, these covenants require the company to meet specified financial tests, which include a consolidated interest coverage ratio and a consolidated senior secured leverage ratio that are the same as the covenant ratios required per the Senior Credit Facility. As of December 31, 2012 , the company was in compliance with all affirmative and negative covenants inclusive of the financial covenants pertaining to the Receivables Purchase Agreement, as amended. Based on our current plans and outlook, we believe we will be able to comply with these covenants during the subsequent 12 months.
Due to a short average collection cycle of less than 60 days for such accounts receivable and due to 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 at December 31, 2012 and 2011 was $34.3 million and $40.3 million , respectively, and is included in accounts receivable in the accompanying Consolidated Balance Sheets.
The securitization program has a maximum capacity of $150 million and includes certain of the company’s U.S., Canadian and German Foodservice and U.S. Crane segment businesses.  Trade accounts receivables sold to the Purchaser and being serviced by the company totaled $149.2 million at December 31, 2012 and $121.1 million at December 31, 2011 .
Transactions under the accounts receivables securitization program are accounted for as sales in accordance with ASC Topic 860, “Transfers and Servicing.”  Sales of trade receivables to the Purchaser 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 due to the short average collection cycle of the related receivables (i.e., 60 days) as noted above.
Prior to June 30, 2010, the Purchaser received an ownership and security interest in the pool of receivables. The Purchaser had no recourse against the company for uncollectible receivables; however the company's retained interest in the receivable pool was subordinate to the Purchaser. Prior to the adoption on January 1, 2010 of new guidance as codified in ASC 860, the receivables sold under this program qualified for de-recognition. After adoption of this guidance on January 1, 2010, receivables sold under this program no longer qualified for de-recognition and, accordingly, cash proceeds on the balance of outstanding trade receivables sold were recorded as a securitization liability in the Consolidated Balance Sheet, and related activity was classified as financing activities in the Consolidated Statements of Cash Flows for the period from January 1, 2010 through June 30, 2010.
13. Income Taxes
Earnings from continuing operations are summarized below:

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(in millions)	 	2012	 	2011	 	2010	
Earnings (loss) from continuing operations before income taxes:	 	 		 	 		 	 		
Domestic	 	$	94.1		 	$	(24.8	)	 	$	(78.4	)	
Foreign	 	36.2		 	58.7		 	35.4		
Total	 	$	130.3		 	$	33.9		 	$	(43.0	)	
The provision for taxes on earnings (loss) from continuing operations for the years ended December 31, 2012 , 2011 and 2010 are as follows:

													
(in millions)	 	2012	 	2011	 	2010	
Current:	 	 		 	 		 	 		
Federal and state	 	$	29.2		 	$	(20.9	)	 	$	(10.9	)	
Foreign	 	17.3		 	17.2		 	12.8		
Total current	 	$	46.5		 	$	(3.7	)	 	$	1.9		
Deferred:	 	 		 	 		 	 		
Federal and state	 	$	(5.2	)	 	$	13.6		 	$	(9.6	)	
Foreign	 	(3.3	)	 	3.7		 	33.9		
Total deferred	 	$	(8.5	)	 	$	17.3		 	$	24.3		
Provision for taxes on earnings	 	$	38.0		 	$	13.6		 	$	26.2		
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, 2012 , 2011 and 2010 as follows, which excludes the impact of discontinued operations which had an effective tax rate of 41.4% for 2012 :

										
 	 	2012	 	2011	 	2010	
Federal income tax at statutory rate	 	35.0	 %	 	35.0	 %	 	35.0	 %	
State income provision (benefit)	 	0.4		 	(13.9	)	 	16.4		
Manufacturing & research incentives	 	(4.0	)	 	(5.8	)	 	4.5		
Taxes on foreign income which differ from the U.S. statutory rate	 	(7.2	)	 	(29.1	)	 	13.8		
Adjustments for unrecognized tax benefits	 	(7.6	)	 	9.8		 	10.1		
Valuation allowances	 	13.4		 	36.2		 	(121.2	)	
Gain/loss on sale of subsidiaries	 	—		 	—		 	11.0		
Other items	 	(0.8	)	 	7.9		 	(30.5	)	
Effective tax rate	 	29.2	 %	 	40.1	 %	 	(60.9	)%	
The effective tax rate for the year ended December 31, 2012 was 29.2% compared to 40.1% and negative 60.9% for the years ended December 31, 2011 and 2010 , respectively.  As the company posted pre-tax losses in 2010, a negative effective tax rate is an expense to the consolidated statement of operations, and a positive effective tax rate represents a benefit to the consolidated statement of operations.
The effective tax rate in 2010 was unfavorably impacted by the full valuation allowance of $45.6 million on the net deferred tax asset in France. The 2012, 2011 and 2010 effective tax rates were favorably impacted by income earned in jurisdictions where the statutory rate was less than 35% .
In jurisdictions where the company operates its Crane business, management analyzes the ability to utilize the deferred tax assets arising from net operating losses on a seven year cycle, consistent with the Crane business cycles, as this provides the best information to evaluate the future profitability of the business units. 
The company recorded a full valuation allowance of $45.6 million on the net deferred tax asset in France during the fourth quarter of 2010 as the French operations moved into a seven year cumulative loss position in the fourth quarter and the company determined that the positive evidence supporting realization of the asset was outweighed by the more objectively verifiable negative evidence.  The company recorded a full valuation allowance of $2.4 million on the net deferred tax assets in Czech Republic and Italy during the fourth quarter of 2011 as the company determined that it was more-likely-than-not that

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certain deferred tax assets in the Czech Republic and Italy would not be utilized.  As a result of Wisconsin legislation enacted in the second quarter of 2011, an income tax benefit of $5.5 million was recorded in the second quarter to release the previously recorded valuation allowance on net operating losses in the state.  The company continues to record valuation allowances on the deferred tax assets in China, the Czech Republic, France, Italy, Slovakia, Spain, and the UK, as it remains more-likely-than-not that they will not be utilized.  The total valuation allowance adjustments of $17.5 million in 2012 had an unfavorable impact to income tax expense.
No items included in Other items are individually, or when appropriately aggregated, significant.
On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, and this legislation retroactively extended the Research & Experimentation ("R&E") tax credit for two years, from January 1, 2012 through December 31, 2013. This legislation also extended the benefits of Internal Revenue Code Section 954(c)(6), look-through rule for Related Controlled Foreign Corporations, retroactively from January 1, 2012 through December 31, 2013.  The look-through rule generally excludes from U.S. federal income tax certain dividends, interest, rents, and royalties received or accrued by one controlled foreign corporation ("CFC") of a U.S. multinational enterprise from a related CFC that would otherwise be taxable pursuant to the Subpart F regime.  The company expects its income tax expense for the first quarter of 2013 to include the benefits of the R&E tax credit attributable to 2012 and the retroactive extension of look-through resulting in a discrete tax benefit ranging between $2.0 million and $3.0 million .
The deferred income tax accounts reflect the impact of temporary differences between the basis of assets and liabilities for financial reporting purposes and their related basis as measured by income tax regulations. A summary of the deferred income tax accounts at December 31 is as follows:

									
(in millions)	 	2012	 	2011	
Current deferred tax assets (liabilities):	 	 		 	 		
   Inventories	 	$	26.2		 	$	26.2		
   Accounts receivable	 	(1.2	)	 	0.3		
   Product warranty reserves	 	20.5		 	23.9		
   Product liability reserves	 	8.7		 	8.4		
   Deferred revenue, current portion	 	2.9		 	2.0		
   Deferred employee benefits	 	13.2		 	33.3		
   Other reserves and allowances	 	21.7		 	28.0		
   Less valuation allowance	 	(7.0	)	 	(10.2	)	
   Net deferred tax assets, current	 	$	85.0		 	$	111.9		
Non-current deferred tax assets (liabilities):	 	 	 	 	
   Property, plant and equipment	 	$	(33.1	)	 	$	(34.1	)	
   Intangible assets	 	(312.1	)	 	(332.9	)	
   Deferred employee benefits	 	71.0		 	42.0		
   Product warranty reserves	 	2.5		 	1.8		
   Tax credits	 	1.7		 	13.8		
   Net operating loss carryforwards	 	222.9		 	180.6		
   Deferred revenue	 	4.8		 	6.2		
   Other	 	(3.6	)	 	(5.5	)	
   Total non-current deferred tax liabilities	 	(45.9	)	 	(128.1	)	
   Less valuation allowance	 	(161.9	)	 	(115.0	)	
   Net deferred tax liabilities, non-current	 	$	(207.8	)	 	$	(243.1	)	
The net deferred tax assets (liabilities) are reflected in the Consolidated Balance Sheets for the years ended December 31, 2012 and December 31, 2011 as follows:

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(in millions)	 	2012	 	2011	
Current income tax asset	 	$	89.0		 	$	116.7		
Long-term income tax assets, included in other non-current assets	 	15.2		 	15.1		
Current deferred income tax liability, included in accounts payable and accrued expenses	 	(4.0	)	 	(4.8	)	
Long-term deferred income tax liability	 	(223.0	)	 	(258.2	)	
Net deferred income tax liability	 	$	(122.8	)	 	$	(131.2	)	
The company has not provided for additional U.S. income taxes on approximately $649.9 million of undistributed earnings of consolidated non-U.S. subsidiaries included in stockholders’ equity. Such earnings could become taxable upon the sale or liquidation of these non-U.S. subsidiaries or upon dividend repatriation. The company’s intent is for such earnings to be reinvested by the subsidiaries or to be repatriated only when it would be tax effective through the utilization of foreign tax credits or when earnings qualify as previously taxed income. It is not practicable to estimate the amount of unrecognized withholding taxes and deferred tax liability on such earnings.
As of December 31, 2012 , the company has approximately $4.0 million of federal net operating loss carryforwards, which expire in 2020.  Additionally, the company has approximately $508.0 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 2031.  The company also has approximately $715.7 million of foreign loss carryforwards, which are available to reduce future foreign tax liabilities.  These foreign loss carryforwards generally have no expiration under current foreign law with the exceptions of China, the Czech Republic, Italy, Slovakia, and Spain, where attributes expire at various times.  The valuation allowance represents a reserve for certain loss carryforwards and other net deferred tax assets for which realization is not more-likely-than-not.
The company has recognized a deferred tax asset of $17.4 million for net operating loss carryforwards generated in the state of Wisconsin.  These carryforwards expire at various times through 2031.  The company determined that no valuation allowance is necessary on the Wisconsin deferred tax asset for net operating losses.
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	 	2008 — 2012	
Wisconsin	 	2006 — 2012	
China	 	2003 — 2012	
France	 	2010 — 2012	
Germany	 	2001 — 2012	
The company is under examination by the Internal Revenue Service (“IRS”) for the calendar years 2008 and 2009. In August 2012, the company received a Notice of Proposed Assessment (“NOPA”) related to the disallowance of the deductibility of a $380.9 million foreign currency loss incurred in calendar year 2008. In September 2012, the company responded to the NOPA indicating its formal disagreement and subsequently received an Examination Report which includes the proposed disallowance. The largest potential adjustment for this matter could, if the IRS were to prevail, increase the company's potential federal tax expense and cash outflow by approximately $134.0 million plus interest and penalties, if any. The company filed a formal protest to the proposed adjustment during the fourth quarter of 2012. The company plans to pursue all administrative and, if necessary, judicial remedies with respect to resolving this matter. However, there can be no assurance that this matter will be resolved in the company's favor. The IRS also examined and proposed adjustments to the research and development credit generated in 2009; the company also formally disagreed with these adjustments.

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, 2012, 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

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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, 2012 , 2011 and 2010 , the company recorded a change to gross unrecognized tax benefits including interest and penalties of $(10.4) million , $11.6 million , and $6.0 million , respectively. The effective tax rate in 2012 was favorably impacted by the release of an $11.6 million reserve resulting from a favorable audit outcome.
During the years ended December 31, 2012 , 2011 and 2010 , the company recognized in the consolidated statements of operations $(1.4) million , $0.5 million , and $3.0 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, 2012 and 2011 , the company has accrued interest and penalties of $22.1 million and $23.5 million , respectively.
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2012 , 2011 and 2010 is as follows:

													
(in millions)	 	2012	 	2011	 	2010	
Balance at beginning of year	 	$	56.3		 	$	45.2		 	$	42.3		
Additions based on tax positions related to the current year	 	1.8		 	1.7		 	4.5		
Additions for tax positions of prior years	 	3.6		 	17.1		 	8.2		
Reductions for tax positions of prior years	 	—		 	(1.7	)	 	(8.1	)	
Reductions based on settlements with taxing authorities	 	(13.0	)	 	(5.4	)	 	—		
Reductions for lapse of statute	 	(1.4	)	 	(0.6	)	 	(1.7	)	
Balance at end of year	 	$	47.3		 	$	56.3		 	$	45.2		
Substantially all of the company’s unrecognized tax benefits as of December 31, 2012 , 2011 and 2010 , 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 $5.1 million , either because the company's tax positions are sustained on audit or settled, or the applicable statute of limitations closes.
14. Earnings Per Share
The following is a reconciliation of the average shares outstanding used to compute basic and diluted earnings per share: 

										
 	 	2012	 	2011	 	2010	
Basic weighted average common shares outstanding	 	131,447,895		 	130,481,436		 	130,581,040		
Effect of dilutive securities - stock options and restricted stock	 	1,869,155		 	2,895,673		 	—		
Diluted weighted average common shares outstanding	 	133,317,050		 	133,377,109		 	130,581,040		
 
For the year ended December 31, 2010 , the total number of potential dilutive options was 1.9 million . However, these options were not included in the computation of diluted net loss per common share for the year, since to do so would decrease the loss per share.  For the years ended December 31, 2012 , 2011 , and 2010 , 3.4 million , 2.8 million , and 1.9 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.
15. 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 has also determined that one Right will be issued together with each share of common stock issued by the company after March 30,

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2007.  Generally, each Right, when it becomes exercisable, entitles 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.
As explained in the Rights Agreement, the Rights become exercisable on the “Distribution Date”, which is that date that any of the following occurs: (1)  10 days following a public announcement that a person or group of affiliated persons has acquired, or obtained the right to acquire, beneficial ownership of 20% or more of the outstanding shares of Common Stock of the company; or (2)  10 business days following the commencement of a tender offer or exchange offer that would result in a person or group beneficially owning 20% or more of such outstanding shares of Common Stock.  The Rights will expire at the close of business on March 29, 2017, unless earlier redeemed or exchanged by the company as described in the Rights Agreement.
The amount and timing of the annual dividend are determined by the Board of Directors at its regular meetings each year subject to limitations within the company’s Senior Credit Facility.  In each of the years ended December 31, 2012 , December 31, 2011 and December 31, 2010 , the company paid an annual dividend of $0.08 per share in the fourth quarter. 
Currently, the company has authorization to purchase up to 10 million shares of common stock at management’s discretion.  As of December 31, 2012 , the company had purchased approximately 7.6 million shares at a cost of $49.8 million pursuant to this authorization.  The company did not purchase any shares of its common stock during 2012 , 2011 , or 2010 .
The components of accumulated other comprehensive income as of December 31, 2012 and 2011 are as follows:

									
(in millions)	 	2012	 	2011	
Foreign currency translation	 	$	50.3		 	$	42.0		
Derivative instrument fair market value, net of income taxes of $0.3 and $(2.4)	 	0.6		 	(4.6	)	
Employee pension and postretirement benefit adjustments, net of income taxes of $(34.4) and $(33.9)	 	(80.3	)	 	(62.2	)	
 	 	$	(29.4	)	 	$	(24.8	)	
16. Stock-Based Compensation
The Manitowoc Company, Inc. 1995 Stock Plan provided for the granting of stock options, restricted stock and limited stock appreciation rights as an incentive to certain employees.  Awards are no longer granted under this plan; however, awards remain outstanding until options are exercised or expire.  Awards surrendered under this plan may become available for granting under the 2003 Incentive Stock and Awards Plan.
The Manitowoc Company, Inc. 2003 Incentive Stock and Awards Plan (2003 Stock Plan) provides for both short-term and long-term incentive awards for employees.  Stock-based awards may take the form of stock options, stock appreciation rights, restricted stock, and performance share or performance unit awards.  The total number of shares of the company’s common stock originally available for awards under the 2003 Stock Plan was 12.0 million shares (adjusted for all stock splits since the plan’s inception) and is subject to further adjustments for stock splits, stock dividends and certain other transactions or events in the future.  Options under this plan are exercisable at such times and subject to such conditions as the compensation committee should determine.  Options granted under the plan prior to 2011 become 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 in 2011 become 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 awarded under this plan lapse 100% on the third anniversary of the grant date .  Performance shares granted under the plan 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 2012 and 2011 awards are set forth below.  There have been no awards of stock appreciation rights or performance units under the 2003 Stock Plan.
The Manitowoc Company, Inc. 1999 Non-Employee Director Stock Option Plan (1999 Stock Plan) provided for the granting of stock options to non-employee members of the Board of Directors.  During 2004, this plan was frozen and replaced with the 2004 Director Stock Plan, which is described below.
The 2004 Non-Employee Director Stock and Awards Plan (2004 Director Stock Plan) was approved by the shareholders of the company during the 2004 annual meeting and it replaced the 1999 Stock Plan.  Stock-based awards may take the form of stock options, restricted stock, or restricted stock units.  The total number of shares of the company’s common stock originally available for awards under the 2004 Stock Plan was 0.9 million (adjusted for all stock splits since the plan’s inception and is

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subject to further adjustments for stock splits, stock dividends and certain other transactions or events in the future).  Stock options awarded under the plan are 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 before tax was $16.4 million , $15.0 million and $9.2 million during 2012 , 2011 , and 2010 , respectively. 
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 0.7 million , 1.0 million and 1.4 million shares of common stock during 2012 , 2011 , and 2010 , 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 $6.7 million , $6.9 million and $6.6 million of compensation expense associated with stock options, which amounted to $4.2 million , $4.3 million and $4.1 million after taxes during 2012 , 2011 , and 2010 , respectively.
A summary of the company’s stock option activity is as follows (in millions, except weighted average exercise price per share):

												
 	 	Shares	 	Weighted
Average
Exercise Price	 	Aggregate
Intrinsic
Value	
Options outstanding as of January 1, 2011	 	7.1		 	$	13.29		 	 		
Granted	 	1.0		 	19.78		 	 		
Exercised	 	(0.2	)	 	6.94		 	 		
Cancelled	 	(0.4	)	 	10.75		 	 		
Options outstanding as of December 31, 2011	 	7.5		 	$	14.44		 	 		
Granted	 	0.7		 	16.27		 	 		
Exercised	 	(0.7	)	 	6.53		 	 		
Cancelled	 	(0.1	)	 	20.53		 	 		
Options outstanding as of December 31, 2012	 	7.4		 	$	15.27		 	$	28.7		
Options exercisable as of:	 	 		 	 		 	 		
December 31, 2012	 	4.1		 	$	17.03		 	$	15.8		
The outstanding stock options at December 31, 2012 have a range of exercise prices from $4.23 to $47.84 per share.  The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2012 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price):

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 	 	Outstanding	 	Weighted
Average
Remaining
Contractual	 	Weighted
Average	 	Exercisable	 	Weighted
Average	
Range of Exercise Price per Share	 	Options	 	Life (Years)	 	Exercise Price	 	Options	 	Exercise Price	
$4.23 - $7.49	 	1.7		 	6.0	 	$	4.42		 	0.8		 	$	4.42		
$7.50 - $8.47	 	0.2		 	1.2	 	7.64		 	0.2		 	7.64		
$8.48 - $10.20	 	0.6		 	2.3	 	10.14		 	0.6		 	10.14		
10.21 - $16.28	 	2.2		 	7.2	 	12.73		 	0.6		 	11.01		
$16.29 - $23.17	 	1.3		 	6.8	 	19.52		 	0.6		 	19.23		
$23.18 - $27.03	 	0.5		 	3.3	 	26.11		 	0.5		 	26.11		
$27.04 - $29.52	 	0.5		 	4.2	 	29.51		 	0.5		 	29.51		
$29.53 - $47.84	 	0.4		 	5.0	 	38.91		 	0.3		 	38.86		
 	 	7.4		 	5.7	 	$	15.27		 	4.1		 	$	17.03		
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.  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, 2012 , the company has $9.7 million of unrecognized compensation expense before tax related to stock options, which will be recognized over a weighted average period of 2.4 years.
The weighted average fair value of options granted per share during the years ended December 31, 2012 , 2011 , and 2010 was $7.97 , $9.66 , and $5.19 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:

										
 	 	2012	 	2011	 	2010	
Expected Life (years)	 	6.0		 	6.0		 	6.0		
Risk-free Interest rate	 	1.1	%	 	2.8	%	 	2.9	%	
Expected volatility	 	55.0	%	 	52.0	%	 	50.0	%	
Expected dividend yield	 	0.6	%	 	0.7	%	 	1.1	%	
For the years ended December 31, 2012 , 2011 , and 2010 the total intrinsic value of stock options exercised was $4.9 million , $2.8 million , and $0.6 million , respectively.
Restricted Share Awards
The company granted restricted stock of 0.2 million , 0.3 million and 0.5 million of common stock during 2012 , 2011 , and 2010 , respectively. Restricted share award expense is based on company share fair value as of the grant date. The company recognized $4.5 million ( $2.8 million after taxes), $4.0 million ( $2.5 million after taxes), and $2.6 million ( $1.6 million after taxes) of compensation expense associated with restricted stock options for the years ended December 31, 2012 , 2011 , and 2010 , respectively. The restrictions on all shares of restricted stock expire on the third anniversary of the applicable grant date. 
A summary of activity for restricted share awards for the year ended December 31, 2012 is as follows (in millions except weighted average grant date fair value):

								
 	 	Shares	 	Weighted
Average
Grant Date Fair Value	
Unvested as of January 1, 2012	 	0.9		 	$	12.65		
Granted	 	0.2		 	16.22		
Vested	 	(0.2	)	 	6.30		
Cancelled	 	—		 	—		
Unvested as of December 31, 2012	 	0.9		 	$	14.86		

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As of December 31, 2012 , the company has $3.7 million of unrecognized compensation expense before tax related to restricted stock, which will be recognized over a weighted average period of 1.6 years.
Performance Shares
The company granted performance shares of 0.3 million and 0.4 million in 2012 and 2011 , respectively.  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. The company recognized $5.2 million ( $3.3 million after taxes) and $4.1 million ( $2.6 million after taxes) of compensation expense associated with performance shares during 2012 and 2011 , respectively. 
The performance shares granted in 2012 are earned based on the extent which performance goals are met by the company over a three -year period from January 1, 2012 to December 31, 2014.  The performance goals for the performance shares granted in 2012 are 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 improvement in the company's total leverage ratio over the three -year period.  Depending on the foregoing factors, the number of shares awarded could range from zero to 0.7 million for the 2012 performance share grants. For these awards the expense is based on company share fair value as of the grant date on the total leverage ratio criteria and a Monte Carlo model for the total shareholder return criteria.
The performance shares granted in 2011 are earned based on the extent to which performance goals are met by the company over a two -year period from January 1, 2011 to December 31, 2012.  The performance goals for the performance shares granted in 2011 are based fifty percent ( 50% ) on EVA ® performance over the two-year period and fifty percent ( 50% ) on debt reduction over the two -year period.  Seventy-five percent ( 75% ) of the shares earned by an employee will be paid out after the end of the two -year performance period and the remaining twenty-five percent ( 25% ) of the shares earned are subject to the further requirement that the employee be continuously employed by the company during the entire 2013 calendar year.  If that criteria is met, then the twenty-five percent ( 25% ) will be paid out to the employee after the end of the 2013 calendar year.  Depending on the foregoing factors, the number of shares awarded could range from zero to 0.9 million .  These shares vest 75% upon performance results being certified by the company's Compensation Committee after December 31, 2012, and 25% on the third anniversary of the grant date subject to the achievement of the performance criteria and service requirements. For these awards the expense is based on company share fair value as of the grant date.
A summary of activity for performance share activity for the year ended December 31, 2012 is as follows (in millions except weighted average grant date fair value):

								
 	 	Shares	 	Weighted
Average
Grant Date Fair Value	
Unvested as of January 1, 2012	 	0.4		 	$	19.00		
Granted	 	0.3		 	17.62		
Vested	 	—		 	—		
Cancelled	 	—		 	—		
Unvested as of December 31, 2012	 	0.7		 	$	18.41		
As of December 31, 2012 , the company has $7.6 million of unrecognized compensation expense before tax related to performance shares which will be recognized over a weighted average period of 1.9 years.
17. Contingencies and Significant Estimates
As of December 31, 2012 , the company held reserves for environmental matters related to Enodis locations of approximately $0.5 million .  At certain of the company’s other facilities, the company has identified 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.

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As of December 31, 2012 , 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 ten years.  The range of the company’s self-insured retention levels is $0.1 million to $3.0 million per occurrence.  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, 2012 , 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, 2012 and December 31, 2011 were $27.9 million and $26.8 million , respectively; $6.3 million and $6.0 million , respectively, was reserved specifically for actual cases and $21.6 million and $20.8 million , respectively, for claims incurred but not reported which were estimated using 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, 2012 and December 31, 2011 , the company had reserved $101.4 million and $103.7 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.
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.
18. 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 other current and non-current liabilities at December 31, 2012 and December 31, 2011 , was $67.2 million and $61.2 million , respectively.  The total amount of residual value guarantees and buyback commitments given by the company and outstanding at December 31, 2012 and December 31, 2011 , was $80.5 million and $89.5 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 2017.
During the years ended December 31, 2012 and 2011 , the company sold $14.3 million and $11.9 million , respectively, of its long-term notes receivable to third party financing companies. The company guarantees some percentage, up to 100% , of collection of the notes to the financing companies.  The company has accounted for the sales of the notes as a financing of receivables.  The receivables remain on the company’s Consolidated Balance Sheets, net of payments made, in other current and non-current assets and the company has recognized an obligation equal to the net outstanding balance of the notes in other current and non-current liabilities in the Consolidated Balance Sheets.  The cash flow benefit of these transactions is reflected as financing activities in the Consolidated Statements of Cash Flows.  During the years ended December 31, 2012 and 2011 customers have paid $14.3 million and $2.7 million , respectively, of the notes to the third party financing companies.  As of December 31, 2012 and 2011 , the outstanding balance of the notes receivables guaranteed by the company was $14.4 million and $14.1 million , respectively.
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 with certain equipment having longer-term warranties.  If a product fails to

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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, 2012 and 2011 :

									
(in millions)	 	2012	 	2011	
Balance at beginning of period	 	$	103.7		 	$	99.2		
Accruals for warranties issued during the period	 	57.1		 	66.8		
Settlements made (in cash or in kind) during the period	 	(59.9	)	 	(62.3	)	
Currency translation	 	0.5		 	—		
Balance at end of period	 	$	101.4		 	$	103.7		
19. Restructuring
During the fourth quarter of 2012, the company committed to a restructuring plan to reduce the cost structure of primarily its French crane facilities and recorded restructuring expense of $6.9 million to establish a reserve for future involuntary employee terminations and related costs. The restructuring plan better aligns the company's resources due to the economic conditions in Europe.
In the fourth quarter of 2008, the company committed to a restructuring plan to reduce the cost structure of its French and Portuguese crane facilities and recorded a restructuring expense of $21.7 million to establish a reserve for future involuntary employee terminations and related costs. The restructuring plan was primarily to better align the company’s resources due to the accelerated decline in demand in Western and Southern Europe where market conditions have negatively impacted the company’s tower crane product sales. As a result of the continued worldwide decline in crane sales during the year ended December 31, 2009, the company recorded an additional $29.0 million in restructuring charges to further reduce the Crane segment cost structure in all regions. The restructuring plans will reduce the Crane segment workforce by approximately 40% of 2008 year-end levels. Due to continued weakness in the Crane segment during 2010, additional reserves of $6.2 million were recorded primarily related to our French operations. These charges were partially offset by $3.7 million of reductions to the reserve based on updated estimates as production outlooks improved in other locations in Europe. As of December 31, 2012 benefit payments made with respect to the workforce reductions pursuant to these plans had been substantially completed. 
The following is a rollforward of all restructuring activities relating to the Crane segment for the twelve-month period ended December 31, 2012 (in millions):

																			
Restructuring
Reserve Balance as
of
December 31, 2011	 	Restructuring
Charges	 	Use of Reserve	 	Reserve
Revisions	 	Restructuring
Reserve Balance as
of
December 31, 2012	
$	4.3		 	$	7.2		 	$	(3.1	)	 	$	—		 	$	8.4		
In conjunction with the acquisition of Enodis in October 2008, certain restructuring activities were undertaken to recognize cost synergies and rationalize the new cost structure of the Foodservice segment. The company recorded additional amounts in 2009 of $7.8 million , $5.5 million , and $14.2 million related to employee termination benefits, facility closure costs, and other, respectively, in conjunction with the finalization of the restructuring plans. These plans are expected to conclude in 2013.
During the years ended December 31, 2012 and 2011 , the company determined that certain restructuring actions originally contemplated in conjunction with the acquisition of Enodis in October 2008 were no longer necessary.  Accordingly, the company adjusted the excess reserves of $0.6 million and $3.0 million to goodwill for the years ended December 31, 2012 and 2011 , respectively.
The following is a rollforward of all restructuring activities relating to the Foodservice segment for the twelve-month period ended December 31, 2012 (in millions):

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Restructuring
Reserve Balance as
of
December 31, 2011	 	Restructuring
Charges	 	Use of Reserve	 	Reserve
Revisions	 	Restructuring
Reserve Balance as
of
December 31, 2012	
$	17.6		 	$	2.3		 	$	(2.1	)	 	$	(0.9	)	 	$	16.9		

20. 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 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 $4.1 million , $4.2 million and $0.3 million for the years ended December 31, 2012 , 2011 and 2010 , 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

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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 which 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 $2.2 million at December 31, 2012 and $2.2 million at December 31, 2011 .  These amounts are offset in the Consolidated Statements of Stockholders’ Equity and Comprehensive Income.
Program B is accounted for as a plan which 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, included in other non-current assets, and obligation, included in other non-current liabilities, were both $13.0 million at December 31, 2012 and $12.0 million at December 31, 2011 .  There was no net impact on the Consolidated Statements of Operations for the years ended December 31, 2012 , 2011 and 2010 .
Pension, Postretirement Health 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.
The components of period benefit costs for the years ended December 31, 2012 , 2011 and 2010 are as follows:

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 	 	US Pension Plans	 	Non-US Pension Plans	 	Postretirement Health
and Other	
(in millions)	 	2012	 	2011	 	2010	 	2012	 	2011	 	2010	 	2012	 	2011	 	2010	
Service cost - benefits earned during the year	 	$	—		 	$	—		 	$	0.6		 	$	2.2		 	$	1.8		 	$	1.9		 	$	0.8		 	$	0.8		 	$	0.8		
Interest cost of projected benefit obligation	 	10.2		 	10.4		 	10.3		 	10.2		 	11.0		 	11.2		 	2.8		 	3.4		 	3.6		
Expected return on assets	 	(10.2	)	 	(9.5	)	 	(9.3	)	 	(8.2	)	 	(9.3	)	 	(9.5	)	 	—		 	—		 	—		
Amortization of prior service cost	 	—		 	—		 	—		 	0.1		 	0.1		 	—		 	—		 	—		 	—		
Amortization of actuarial net (gain) loss	 	2.9		 	1.6		 	0.2		 	0.8		 	0.4		 	0.2		 	0.4		 	0.3		 	0.3		
Curtailment gain recognized	 	—		 	—		 	—		 	—		 	—		 	(0.2	)	 	—		 	—		 	—		
Settlement gain recognized	 	—		 	—		 	—		 	(1.6	)	 	—		 	0.2		 	—		 	—		 	—		
Special termination benefit	 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	—		
Net periodic benefit cost	 	$	2.9		 	$	2.5		 	$	1.8		 	$	3.5		 	$	4.0		 	$	3.8		 	$	4.0		 	$	4.5		 	$	4.7		
Weighted average assumptions:	 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		
Discount rate	 	4.6	%	 	5.4	%	 	6.0	%	 	4.7	%	 	5.3	%	 	5.6	%	 	4.6	%	 	5.4	%	 	6.0	%	
Expected return on plan assets	 	6.0	%	 	6.0	%	 	6.1	%	 	4.5	%	 	5.4	%	 	5.5	%	 	N/A		 	N/A		 	N/A		
Rate of compensation increase	 	N/A		 	N/A		 	N/A		 	3.7	%	 	4.2	%	 	4.4	%	 	3.0	%	 	3.0	%	 	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, 2012 and 2011 :

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 	 	US Pension Plans	 	Non-US Pension Plans	 	Postretirement
Health
and Other	
(in millions)	 	2012	 	2011	 	2012	 	2011	 	2012	 	2011	
Change in Benefit Obligation	 	 		 	 		 	 		 	 		 	 		 	 		
Benefit obligation, beginning of year	 	$	226.1		 	$	197.3		 	$	221.0		 	$	200.1		 	$	63.9		 	$	63.9		
Service cost	 	—		 	—		 	2.2		 	1.8		 	0.8		 	0.8		
Interest cost	 	10.2		 	10.4		 	10.2		 	11.0		 	2.8		 	3.4		
Participant contributions	 	—		 	—		 	0.1		 	0.1		 	2.7		 	2.4		
Medicare subsidies received	 	—		 	—		 	—		 	—		 	0.6		 	0.7		
Plan curtailments	 	—		 	—		 	—		 	—		 	(0.4	)	 	—		
Plan settlements	 	—		 	—		 	(0.7	)	 	—		 	—		 	—		
Plan amendments	 	—		 	—		 	—		 	—		 	(0.2	)	 	—		
Net transfer out	 	—		 	—		 	(0.6	)	 	(0.3	)	 	—		 	—		
Actuarial loss (gain)	 	14.8		 	29.7		 	27.4		 	17.9		 	(6.9	)	 	1.1		
Currency translation adjustment	 	—		 	—		 	6.8		 	1.4		 	0.1		 	(0.1	)	
Benefits paid	 	(9.7	)	 	(11.3	)	 	(11.4	)	 	(11.0	)	 	(5.9	)	 	(8.3	)	
Benefit obligation, end of year	 	$	241.4		 	$	226.1		 	$	255.0		 	$	221.0		 	$	57.5		 	$	63.9		
Change in Plan Assets	 	 		 	 		 	 		 	 		 	 		 	 		
Fair value of plan assets, beginning of year	 	$	174.5		 	$	163.2		 	$	182.0		 	$	170.9		 	$	—		 	$	—		
Actual return on plan assets	 	14.6		 	20.6		 	19.1		 	16.6		 	—		 	—		
Employer contributions	 	1.2		 	2.0		 	5.2		 	3.8		 	2.6		 	5.2		
Participant contributions	 	—		 	—		 	0.1		 	0.1		 	2.7		 	2.4		
Medicare subsidies received	 	—		 	—		 	—		 	—		 	0.6		 	0.7		
Plan settlements	 	—		 	—		 	(0.7	)	 	—		 	—		 	—		
Currency translation adjustment	 	—		 	—		 	5.8		 	2.0		 	—		 	—		
Net transfer out	 	—		 	—		 	(0.6	)	 	(0.4	)	 	—		 	—		
Benefits paid	 	(9.7	)	 	(11.3	)	 	(11.4	)	 	(11.0	)	 	(5.9	)	 	(8.3	)	
Fair value of plan assets, end of year	 	180.6		 	174.5		 	199.5		 	182.0		 	—		 	—		
Funded status	 	$	(60.8	)	 	$	(51.6	)	 	$	(55.5	)	 	$	(39.0	)	 	$	(57.5	)	 	$	(63.9	)	
Amounts recognized in the Consolidated Balance sheet at December 31	 	 		 	 		 	 		 	 		 	 		 	 		
Pension asset	 	$	—		 	$	—		 	$	0.3		 	$	2.0		 	$	—		 	$	—		
Pension obligation	 	(60.8	)	 	(51.6	)	 	(55.8	)	 	(41.0	)	 	—		 	—		
Postretirement health and other benefit obligations	 	—		 	—		 	—		 	—		 	(57.5	)	 	(63.9	)	
Net amount recognized	 	$	(60.8	)	 	$	(51.6	)	 	$	(55.5	)	 	$	(39.0	)	 	$	(57.5	)	 	$	(63.9	)	
Weighted-Average Assumptions	 	 		 	 		 	 		 	 		 	 		 	 		
Discount rate	 	4.09	%	 	4.60	%	 	3.98	%	 	4.65	%	 	3.53	%	 	4.58	%	
Expected return on plan assets	 	6.00	%	 	6.00	%	 	4.53	%	 	5.36	%	 	N/A		 	N/A		
Amounts recognized in accumulated other comprehensive income as of December 31, 2012 and 2011 , consist of the following:  

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 	 	Pensions	 	Postretirement
Health and Other	
(in millions)	 	2012	 	2011	 	2012	 	2011	
Net actuarial gain (loss)	 	$	(111.3	)	 	$	(85.3	)	 	$	(2.6	)	 	$	(10.4	)	
Prior service credit	 	(1.0	)	 	(1.1	)	 	0.2		 	—		
Total amount recognized	 	$	(112.3	)	 	$	(86.4	)	 	$	(2.4	)	 	$	(10.4	)	
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 $5.5 million for the pension plan and none for the postretirement health and other plans.
For measurement purposes, a 7.8% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2012 .  The rate was assumed to decrease gradually to 5.0% for 2019 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, 2012 retirement obligations and 2013 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 2013 pension
cost	 	Estimated increase
(decrease) in Projected
Benefit Obligation for the
year ended December 31,
2012	 	Estimated increase
(decrease) in 2013 Other
Postretirement Benefit
costs	 	Estimated increase
(decrease) in Other
Postretirement Benefit
Obligation for the year
ended December 31, 2012	
0.50% increase in discount rate	 	$	(1.5	)	 	$	(31.1	)	 	$	0.1		 	$	(2.4	)	
0.50% decrease in discount rate	 	1.6		 	34.0		 	(0.1	)	 	2.6		
0.50% increase in long-term return on assets	 	(1.9	)	 	N/A		 	N/A		 	N/A		
0.50% decrease in long-term return on assets	 	1.9		 	N/A		 	N/A		 	N/A		
1% increase in medical trend rates	 	N/A		 	N/A		 	0.3		 	4.7		
1% decrease in medical trend rates	 	N/A		 	N/A		 	(0.2	)	 	(4.2	)	
It is reasonably possible that the estimate for future retirement and health 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, 2012 and 2011 , by asset category are as follows:

							
 	 	2012	 	2011	
Equity	 	19.7	%	 	18.7	%	
Fixed income	 	79.8	%	 	80.8	%	
Other	 	0.5	%	 	0.5	%	
 	 	100.0	%	 	100.0	%	
The weighted-average asset allocations of the Non U.S. pension plans at December 31, 2012 and 2011 , by asset category are as follows:

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 	 	2012	 	2011	
Equity	 	17.9	%	 	17.2	%	
Fixed income	 	25.8	%	 	25.7	%	
Other	 	56.3	%	 	57.1	%	
 	 	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 our 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.
We review our long-term, strategic asset allocations annually. We use 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. We identify 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 on a monthly basis.
The actual allocations for the pension assets at December 31, 2012 , 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	20	%	 	0 - 20%	 	20	%	 	18	%	
Debt Securities	80	%	 	0 - 100%	 	80	%	 	26	%	
Other	—	%	 	0 - 100%	 	1	%	 	56	%	
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, 2012 and 2011 .  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.

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 	 	December 31, 2012	
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	 	$	2.1		 	$	—		 	$	—		 	$	2.1		
Insurance group annuity contracts	 	—		 	—		 	111.1		 	111.1		
Common/collective trust funds — Government debt	 	—		 	8.9		 	—		 	8.9		
Common/collective trust funds — Corporate and other non-government debt	 	—		 	49.8		 	—		 	49.8		
Common/collective trust funds — Government, corporate and other non-government debt	 	—		 	95.5		 	—		 	95.5		
Common/collective trust funds — Corporate equity	 	—		 	71.4		 	—		 	71.4		
Common/collective trust funds — Customized strategy	 	—		 	41.3		 	—		 	41.3		
Total	 	$	2.1		 	$	266.9		 	$	111.1		 	$	380.1		

																	
 	 	December 31, 2011	
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	 	$	2.3		 	$	—		 	$	—		 	$	2.3		
Insurance group annuity contracts	 	—		 	—		 	102.4		 	102.4		
Common/collective trust funds — Government debt	 	—		 	8.7		 	—		 	8.7		
Common/collective trust funds — Corporate and other non-government debt	 	—		 	46.3		 	—		 	46.3		
Common/collective trust funds — Government, corporate and other non-government debt	 	—		 	92.8		 	—		 	92.8		
Common/collective trust funds — Corporate equity	 	—		 	64.0		 	—		 	64.0		
Common/collective trust funds — Customized strategy	 	—		 	40.0		 	—		 	40.0		
Total	 	$	2.3		 	$	251.8		 	$	102.4		 	$	356.5		
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:

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 	 	Insurance Contracts
Year Ended December 31,	
(in millions)	 	2012	 	2011	
Beginning Balance	 	$	102.4		 	$	101.2		
Actual return on assets	 	15.4		 	12.6		
Benefit payments	 	(6.7	)	 	(7.7	)	
Sale of annuity	 	—		 	(3.7	)	
Ending Balance	 	$	111.1		 	$	102.4		
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 expected 2013 contributions for the U.S. pension plans are as follows: the minimum contribution for 2013 is $1.1 million ; and no planned discretionary or non-cash contributions.  The expected 2013 contributions for the non-U.S. pension plans are as follows: the minimum contribution for 2013 is $4.5 million ; and no planned discretionary or non-cash contributions.  Expected company paid claims for the postretirement health and life insurance plans are $4.0 million for 2013.  Projected benefit payments from the plans as of December 31, 2012 are estimated as follows:

													
(in millions)	 	U.S Pension Plans	 	Non-U.S. Pension
Plans	 	Postretirement
Health and Other	
2013	 	$	11.8		 	$	12.3		 	$	4.0		
2014	 	12.1		 	12.2		 	4.1		
2015	 	12.5		 	13.0		 	4.2		
2016	 	13.0		 	13.7		 	4.5		
2017	 	13.5		 	15.1		 	4.7		
2018 — 2022	 	70.8		 	83.4		 	22.2		
The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2012 and 2011 is as follows:

																	
 	 	U.S Pension Plans	 	Non U.S. Pension Plans	
(in millions)	 	2012	 	2011	 	2012	 	2011	
Projected benefit obligation	 	$	241.4		 	$	226.1		 	$	251.5		 	$	179.6		
Accumulated benefit obligation	 	241.4		 	226.1		 	246.7		 	176.6		
Fair value of plan assets	 	180.6		 	174.5		 	195.7		 	138.7		
The accumulated benefit obligation for all U.S. pension plans as of December 31, 2012 and 2011 was $241.4 million and $226.1 million , respectively.  The accumulated benefit obligation for all non-U.S. pension plans as of December 31, 2012 and 2011 was $249.0 million and $216.0 million , respectively.
The measurement date for all plans is December 31, 2012 .
The company also maintains a target benefit plan for certain executive officers of the company.  Expenses related to the plan in the amount of $3.3 million , $3.0 million and $0.9 million were recorded in 2012 , 2011 , and 2010 , respectively.  Amounts accrued as of December 31, 2012 and 2011 related to this plan were $23.4 million and $21.4 million , respectively.
The company, through its Lincoln Foodservice operation, contributes to a multiemployer defined benefit pension plan under a collective bargaining agreement that covers certain of its union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans, in the following respects:

a)	Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.	

b)	If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.	

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c)	If Manitowoc ceases to have an obligation to contribute to the multiemployer plan in which it had been a contributing employer, it may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of Manitowoc’s participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multiemployer plan is required to pay to the plan is referred to as a withdrawal liability.	
Manitowoc’s participation in a multiemployer plan for the annual period ended December 31, 2012 is outlined in the table below. The company does not own more than five percent of the plan as of December 31, 2012 . The “EIN / Pension Plan Number” column provides the Employee Identification Number and the three-digit plan number assigned to the plan by the Internal Revenue Service.
The most recent Pension Protection Act Zone Status available for 2012 and 2011 is for the plan years that ended in 2012 and 2011 , respectively. The zone status is based on information provided to Manitowoc and other participating employers by the plan and is certified by the plan’s actuary. A plan in the “red” zone has been determined to be in “critical status”, based on criteria established under the Tax Code and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Tax Code, and is generally less than 80%   funded. A plan in the “green” zone has been determined to be in neither “critical status” nor “endangered status”, and is generally at least 80% funded.
The “FIP/RP Status Pending/Implemented” column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2012 .
The “Surcharge Imposed” column indicates whether Manitowoc’s contribution rate for 2012 included an amount in addition the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code.
The last column lists the expiration dates of the collective bargaining agreements Manitowoc contributes to the plans (dollars in millions).

																									
 	 	 	 	Pension Protection Act
Zone Status	 	FIP /
RP Status	 	Contributions by Manitowoc	 	 	 	Expiration Dates of
Collective	
Pension Fund	 	EIN / Pension Plan
Number	 	2012	 	2011	 	Pending /
Implemented	 	2012	 	2011	 	2010	 	Surcharge
Imposed	 	Bargaining
Agreements	
Sheet Metal Workers’ National Pension Fund	 	52-6112463 / 001	 	Red	 	Red	 	Implemented	 	$	0.9		 	$	0.8		 	$	0.8		 	No	 	5/1/2013	
 	 	 	 	 	 	 	 	Total Contributions	 	$	0.9		 	$	0.8		 	$	0.8		 	 	 	 	
Estimated contributions to the multiemployer plan in 2013 are $0.9 million .

21. 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 $38.1 million , $43.1 million and $39.9 million in 2012 , 2011 and 2010 , respectively. 
Future minimum rental obligations under non-cancelable operating leases, as of December 31, 2012 , are payable as follows:

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(in millions)	 	
2013	$	50.8		
2014	40.5		
2015	32.3		
2016	27.6		
2017	21.4		
Thereafter	34.7		
Total	$	207.3		
22. Business Segments  
The company identifies its segments using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the company’s reportable segments.  The company has not aggregated individual operating segments within these reportable segments.
The Crane business is a global provider of engineered lift solutions which designs, manufactures and markets a comprehensive line of lattice-boom crawler cranes, mobile telescopic cranes, tower cranes and boom trucks.  The Crane products are used in a wide variety of applications, including energy, petrochemical and industrial projects, infrastructure development such as road, bridge and airport construction, commercial and high-rise residential construction, mining and dredging.  Our crane-related product support services are principally marketed under the Crane Care brand name and include maintenance and repair services and parts supply.
Our Foodservice equipment business designs, manufactures and sells primary cooking and warming equipment; ice-cube machines, ice flaker machines and storage bins; refrigerator and freezer equipment; beverage dispensers and related products; serving and storage equipment; and food-preparation equipment.  Our suite of products is used by commercial and institutional foodservice operators such as full service restaurants, QSR chains, hotels, industrial caterers, supermarkets, convenience stores, hospitals, schools and other institutions.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that certain expenses are not allocated to the segments.  These unallocated expenses are corporate overhead, amortization expense of intangible assets with definite lives, goodwill impairment, intangible asset impairment, restructuring expense, integration expense and other expense.  The company evaluates segment performance based upon profit and loss before the aforementioned expenses.  Financial information relating to the company’s reportable segments for the years ended December 31, 2012 , 2011 and 2010 is as follows: 

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(in millions)	 	2012	 	2011	 	2010	
Net sales from continuing operations:	 	 		 	 		 	 		
Crane	 	$	2,440.8		 	$	2,164.6		 	$	1,748.6		
Foodservice	 	1,486.2		 	1,454.6		 	1,362.9		
Total	 	$	3,927.0		 	$	3,619.2		 	$	3,111.5		
Operating earnings (loss) from continuing operations:	 	 		 	 		 	 		
Crane	 	$	156.0		 	$	108.2		 	$	90.6		
Foodservice	 	238.6		 	214.4		 	201.9		
Corporate	 	(63.7	)	 	(61.3	)	 	(42.0	)	
Amortization expense	 	(37.1	)	 	(37.9	)	 	(37.4	)	
Restructuring expense	 	(9.5	)	 	(5.5	)	 	(3.8	)	
Other (expense) income	 	(2.5	)	 	0.5		 	(2.3	)	
Total	 	$	281.8		 	$	218.4		 	$	207.0		
Capital expenditures:	 	 		 	 		 	 		
Crane	 	$	52.7		 	$	52.2		 	$	21.9		
Foodservice	 	17.4		 	11.9		 	12.0		
Corporate	 	2.8		 	0.7		 	2.0		
Total	 	$	72.9		 	$	64.8		 	$	35.9		
Total depreciation:	 	 		 	 		 	 		
Crane	 	$	44.9		 	$	54.2		 	$	56.5		
Foodservice	 	22.3		 	24.5		 	27.1		
Corporate	 	2.3		 	2.8		 	2.9		
Total	 	$	69.5		 	$	81.5		 	$	86.5		
Total assets:	 	 		 	 		 	 		
Crane	 	$	1,903.3		 	$	1,760.8		 	$	1,659.3		
Foodservice	 	1,956.8		 	2,192.6		 	2,193.4		
Corporate	 	197.2		 	69.2		 	219.6		
Total	 	$	4,057.3		 	$	4,022.6		 	$	4,072.3		
 
Net sales from continuing operations and long-lived asset information by geographic area as of and for the years ended December 31 are as follows:

																					
 	 	Net Sales	 	Long-Lived Assets	
(in millions)	 	2012	 	2011	 	2010	 	2012	 	2011	
United States	 	$	1,833.0		 	$	1,588.8		 	$	1,335.2		 	$	1,905.4		 	$	1,964.7		
Other North America	 	278.2		 	208.8		 	139.0		 	5.3		 	6.0		
Europe	 	788.0		 	813.4		 	749.2		 	510.6		 	511.5		
Asia	 	367.7		 	382.1		 	306.2		 	213.0		 	225.1		
Middle East	 	161.6		 	189.4		 	168.7		 	1.6		 	1.7		
Central and South America	 	243.0		 	237.8		 	203.0		 	33.3		 	15.5		
Africa	 	110.8		 	65.4		 	69.5		 	—		 	—		
South Pacific and Caribbean	 	10.6		 	12.0		 	11.5		 	4.6		 	4.8		
Australia	 	134.1		 	121.5		 	129.2		 	4.4		 	4.2		
Total	 	$	3,927.0		 	$	3,619.2		 	$	3,111.5		 	$	2,678.2		 	$	2,733.5		
Net sales from continuing operations and long-lived asset information for Europe primarily relate to France, Germany and the United Kingdom.

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23. Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022
The following tables present condensed consolidating financial information for (a) The Manitowoc Company, Inc. (Parent); (b) the guarantors of the Senior Notes due 2018, the Senior Notes due 2020, and the Senior Notes due 2022 which include substantially all of the domestic, 100% owned subsidiaries of the company (Subsidiary Guarantors); and (c) the wholly and partially owned foreign subsidiaries of the Parent, which do not guarantee the Senior Notes due 2018, the Senior Notes due 2020, and the Senior Notes due 2022 (Non-Guarantor Subsidiaries).  Separate financial statements of the Subsidiary Guarantors are not presented because the guarantors are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions.

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The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2012
(In millions)

	
																				
 	Parent	 	Guarantor
Subsidiaries	 	Non-
Guarantor
Subsidiaries	 	Eliminations	 	Consolidated	
Net sales	$	—		 	$	2,616.4		 	$	1,972.7		 	$	(662.1	)	 	$	3,927.0		
Costs and expenses:	 		 	 		 	 		 	 		 	 		
Cost of sales	—		 	2,022.3		 	1,632.4		 	(662.1	)	 	2,992.6		
Engineering, selling and administrative expenses	61.2		 	247.6		 	294.7		 	—		 	603.5		
Amortization expense	—		 	29.9		 	7.2		 	—		 	37.1		
Restructuring expense	—		 	0.7		 	8.8		 	—		 	9.5		
Other expense	—		 	2.5		 	—		 	—		 	2.5		
Equity in (earnings) loss of subsidiaries	(167.2	)	 	(36.0	)	 	—		 	203.2		 	—		
Total costs and expenses	(106.0	)	 	2,267.0		 	1,943.1		 	(458.9	)	 	3,645.2		
Operating earnings (loss) from continuing operations	106.0		 	349.4		 	29.6		 	(203.2	)	 	281.8		
Other income (expense):	 		 	 		 	 		 	 		 	 		
Interest expense	(122.9	)	 	(2.1	)	 	(12.1	)	 	—		 	(137.1	)	
Amortization of deferred financing fees	(8.2	)	 	—		 	—		 	—		 	(8.2	)	
Loss on debt extinguishment	(6.3	)	 	—		 	—		 	—		 	(6.3	)	
Management fee income (expense)	60.1		 	(77.8	)	 	17.7		 	—		 	—		
Other income (expense)-net	16.5		 	(45.9	)	 	29.5		 	—		 	0.1		
Total other income (expense)	(60.8	)	 	(125.8	)	 	35.1		 	—		 	(151.5	)	
Earnings (loss) from continuing operations before taxes on earnings	45.2		 	223.6		 	64.7		 	(203.2	)	 	130.3		
Provision (benefit) for taxes on earnings	(56.5	)	 	69.2		 	25.3		 	—		 	38.0		
Earnings (loss) from continuing operations	101.7		 	154.4		 	39.4		 	(203.2	)	 	92.3		
Discontinued operations:	 		 	 		 	 		 	 		 	 		
Earnings (loss) from discontinued operations, net of income taxes	—		 	(0.9	)	 	1.2		 	—		 	0.3		
Gain (loss) on sale of discontinued operations, net of income taxes	—		 	—		 	—		 	—		 	—		
Net earnings (loss)	101.7		 	153.5		 	40.6		 	(203.2	)	 	92.6		
Less: Net gain (loss) attributable to noncontrolling interest	—		 	—		 	(9.1	)	 	—		 	(9.1	)	
Net earnings (loss) attributable to Manitowoc	$	101.7		 	$	153.5		 	$	49.7		 	$	(203.2	)	 	$	101.7		
 	 	 	 	 	 	 	 	 	 	
Comprehensive income (loss) attributable to Manitowoc	$	97.1		 	$	153.7		 	$	51.9		 	$	(205.6	)	 	$	97.1		

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The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2011
(In millions)

	
																				
 	Parent	 	Guarantor
Subsidiaries	 	Non-
Guarantor
Subsidiaries	 	Eliminations	 	Consolidated	
Net sales	$	—		 	$	2,166.0		 	$	1,938.8		 	$	(485.6	)	 	$	3,619.2		
Costs and expenses:	 		 	 		 	 		 	 		 	 		
Cost of sales	—		 	1,681.5		 	1,596.6		 	(485.6	)	 	2,792.5		
Engineering, selling and administrative expenses	58.9		 	231.1		 	275.4		 	—		 	565.4		
Amortization expense	—		 	29.9		 	8.0		 	—		 	37.9		
Restructuring expense	—		 	0.5		 	5.0		 	—		 	5.5		
Other expense	—		 	0.7		 	(1.2	)	 	—		 	(0.5	)	
Equity in (earnings) loss of subsidiaries	(70.4	)	 	(32.4	)	 	—		 	102.8		 	—		
Total costs and expenses	(11.5	)	 	1,911.3		 	1,883.8		 	(382.8	)	 	3,400.8		
Operating earnings (loss) from continuing operations	11.5		 	254.7		 	55.0		 	(102.8	)	 	218.4		
Other income (expense):	 		 	 		 	 		 	 		 	 		
Interest expense	(132.9	)	 	(1.5	)	 	(12.3	)	 	—		 	(146.7	)	
Amortization of deferred financing fees	(10.4	)	 	—		 	—		 	—		 	(10.4	)	
Loss on debt extinguishment	(29.7	)	 	—		 	—		 	—		 	(29.7	)	
Management fee income (expense)	55.0		 	(68.0	)	 	13.0		 	—		 	—		
Other income (expense)-net	40.6		 	(69.7	)	 	31.4		 	—		 	2.3		
Total other income (expense)	(77.4	)	 	(139.2	)	 	32.1		 	—		 	(184.5	)	
Earnings (loss) from continuing operations before taxes on earnings	(65.9	)	 	115.5		 	87.1		 	(102.8	)	 	33.9		
Provision (benefit) for taxes on earnings	(54.7	)	 	32.5		 	35.8		 	—		 	13.6		
Earnings (loss) from continuing operations	(11.2	)	 	83.0		 	51.3		 	(102.8	)	 	20.3		
Discontinued operations:	 		 	 		 	 		 	 		 	 		
Earnings (loss) from discontinued operations, net of income taxes	—		 	(1.5	)	 	(1.9	)	 	—		 	(3.4	)	
Gain (loss) on sale of discontinued operations, net of income taxes	—		 	(34.6	)	 	—		 	—		 	(34.6	)	
Net earnings (loss)	(11.2	)	 	46.9		 	49.4		 	(102.8	)	 	(17.7	)	
Less: Net gain (loss) attributable to noncontrolling interest	—		 	—		 	(6.5	)	 	—		 	(6.5	)	
Net earnings (loss) attributable to Manitowoc	$	(11.2	)	 	$	46.9		 	$	55.9		 	$	(102.8	)	 	$	(11.2	)	
 	 	 	 	 	 	 	 	 	 	
Comprehensive income (loss) attributable to Manitowoc	$	(36.1	)	 	$	47.1		 	$	51.1		 	$	(98.2	)	 	$	(36.1	)	

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The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2010
(In millions)

	
																				
 	Parent	 	Guarantor
Subsidiaries	 	Non-
Guarantor
Subsidiaries	 	Eliminations	 	Consolidated	
Net sales	$	—		 	$	1,803.7		 	$	1,701.4		 	$	(393.6	)	 	$	3,111.5		
Costs and expenses:	 		 	 		 	 		 	 		 	 		
Cost of sales	—		 	1,347.5		 	1,398.2		 	(393.6	)	 	2,352.1		
Engineering, selling and administrative expenses	39.8		 	216.0		 	253.1		 	—		 	508.9		
Amortization expense	—		 	29.7		 	7.7		 	—		 	37.4		
Restructuring expense	—		 	0.2		 	3.6		 	—		 	3.8		
Other expense	—		 	1.9		 	0.4		 	—		 	2.3		
Equity in (earnings) loss of subsidiaries	(28.1	)	 	(28.7	)	 	—		 	56.8		 	—		
Total costs and expenses	11.7		 	1,566.6		 	1,663.0		 	(336.8	)	 	2,904.5		
Operating earnings (loss) from continuing operations	(11.7	)	 	237.1		 	38.4		 	(56.8	)	 	207.0		
Other income (expense):	 		 	 		 	 		 	 		 	 		
Interest expense	(166.3	)	 	(2.1	)	 	(6.6	)	 	—		 	(175.0	)	
Amortization of deferred financing fees	(22.0	)	 	—		 	—		 	—		 	(22.0	)	
Loss on debt extinguishment	(44.0	)	 	—		 	—		 	—		 	(44.0	)	
Management fee income (expense)	37.3		 	(48.4	)	 	11.1		 	—		 	—		
Other income (expense)-net	68.2		 	(67.2	)	 	(10.0	)	 	—		 	(9.0	)	
Total other income (expense)	(126.8	)	 	(117.7	)	 	(5.5	)	 	—		 	(250.0	)	
Earnings (loss) from continuing operations before taxes on earnings	(138.5	)	 	119.4		 	32.9		 	(56.8	)	 	(43.0	)	
Provision (benefit) for taxes on earnings	(63.9	)	 	34.8		 	55.3		 	—		 	26.2		
Earnings (loss) from continuing operations	(74.6	)	 	84.6		 	(22.4	)	 	(56.8	)	 	(69.2	)	
Discontinued operations:	 		 	 		 	 		 	 		 	 		
Earnings (loss) from discontinued operations, net of income taxes	—		 	(0.8	)	 	(7.3	)	 	—		 	(8.1	)	
Gain (loss) on sale of discontinued operations, net of income taxes	—		 	—		 	—		 	—		 	—		
Net earnings (loss)	(74.6	)	 	83.8		 	(29.7	)	 	(56.8	)	 	(77.3	)	
Less: Net gain (loss) attributable to noncontrolling interest	—		 	—		 	(2.7	)	 	—		 	(2.7	)	
Net earnings (loss) attributable to Manitowoc	$	(74.6	)	 	$	83.8		 	$	(27.0	)	 	$	(56.8	)	 	$	(74.6	)	
 	 	 	 	 	 	 	 	 	 	
Comprehensive income (loss) attributable to Manitowoc	$	(126.5	)	 	$	83.6		 	$	0.6		 	$	(84.2	)	 	$	(126.5	)	

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The Manitowoc Company, Inc.
Condensed Consolidating Balance Sheet
as of December 31, 2012
(In millions)

																				
 	Parent	 	Guarantor
Subsidiaries	 	Non-
Guarantor
Subsidiaries	 	Eliminations	 	Consolidated	
Assets	 		 	 		 	 		 	 		 	 		
Current Assets:	 		 	 		 	 		 	 		 	 		
Cash and cash equivalents	$	12.0		 	$	4.0		 	$	57.4		 	$	—		 	$	73.4		
Marketable securities	2.7		 	—		 	—		 	—		 	2.7		
Restricted cash	5.3		 	—		 	5.3		 	—		 	10.6		
Accounts receivable — net	0.4		 	29.0		 	303.3		 	—		 	332.7		
Intercompany interest receivable	4.1		 	3.2		 	—		 	(7.3	)	 	—		
Inventories — net	—		 	338.3		 	369.3		 	—		 	707.6		
Deferred income taxes	70.9		 	—		 	18.1		 	—		 	89.0		
Other current assets	3.8		 	3.5		 	107.9		 	(10.0	)	 	105.2		
Current assets of discontinued operation	—		 	—		 	6.8		 	—		 	6.8		
Total current assets	99.2		 	378.0		 	868.1		 	(17.3	)	 	1,328.0		
Property, plant and equipment — net	6.8		 	271.3		 	278.0		 	—		 	556.1		
Goodwill	—		 	969.1		 	241.6		 	—		 	1,210.7		
Other intangible assets — net	—		 	620.9		 	175.5		 	—		 	796.4		
Intercompany long-term notes receivable	928.6		 	158.6		 	897.5		 	(1,984.7	)	 	—		
Intercompany accounts receivable	—		 	924.1		 	1,260.3		 	(2,184.4	)	 	—		
Other non-current assets	49.3		 	4.5		 	76.5		 	—		 	130.3		
Long-term assess of discontinued operations	—		 	—		 	35.8		 	—		 	35.8		
Investment in affiliates	4,985.4		 	3,443.6		 	—		 	(8,429.0	)	 	—		
Total assets	$	6,069.3		 	$	6,770.1		 	$	3,833.3		 	$	(12,615.4	)	 	$	4,057.3		
Liabilities and Equity	 		 	 		 	 		 	 		 	 		
Current Liabilities:	 		 	 		 	 		 	 		 	 		
Accounts payable and accrued expenses	$	93.6		 	$	410.6		 	$	408.7		 	$	—		 	$	912.9		
Short-term borrowings and current portion of long-term debt	45.2		 	0.7		 	56.9		 	(10.0	)	 	92.8		
Intercompany interest payable	3.2		 	—		 	4.1		 	(7.3	)	 	—		
Product warranties	—		 	44.5		 	37.6		 	—		 	82.1		
Customer advances	—		 	7.8		 	16.4		 	—		 	24.2		
Product liabilities	—		 	23.5		 	4.4		 	—		 	27.9		
Current liabilities of discontinued operation	—		 	—		 	6.0		 	—		 	6.0		
Total current liabilities	142.0		 	487.1		 	534.1		 	(17.3	)	 	1,145.9		
Non-Current Liabilities:	 		 	 		 	 		 	 		 	 		
Long-term debt, less current portion	1,708.3		 	3.0		 	20.7		 	—		 	1,732.0		
Deferred income taxes	176.0		 	—		 	47.0		 	—		 	223.0		
Pension obligations	80.0		 	12.2		 	22.1		 	—		 	114.3		
Postretirement health and other benefit obligations	49.8		 	—		 	3.6		 	—		 	53.4		
Long-term deferred revenue	—		 	6.0		 	31.7		 	—		 	37.7		
Intercompany long-term note payable	183.3		 	827.5		 	973.9		 	(1,984.7	)	 	—		
Intercompany accounts payable	3,024.9		 	—		 	57.9		 	(3,082.8	)	 	—		
Other non-current liabilities	104.7		 	15.6		 	40.8		 	—		 	161.1		
Long-term liabilities of discontinued operation	—		 	—		 	8.6		 	—		 	8.6		
Total non-current liabilities	5,327.0		 	864.3		 	1,206.3		 	(5,067.5	)	 	2,330.1		
Equity	 		 	 		 	 		 	 		 	 		
Manitowoc stockholders' equity	600.3		 	5,418.7		 	2,111.9		 	(7,530.6	)	 	600.3		
Noncontrolling interest	—		 	—		 	(19.0	)	 	—		 	(19.0	)	
Total equity	600.3		 	5,418.7		 	2,092.9		 	(7,530.6	)	 	581.3		
Total liabilities and equity	$	6,069.3		 	$	6,770.1		 	$	3,833.3		 	$	(12,615.4	)	 	$	4,057.3		

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The Manitowoc Company, Inc.
Condensed Consolidating Balance Sheet
as of December 31, 2011
(In millions)

																				
 	Parent	 	Guarantor
Subsidiaries	 	Non-
Guarantor
Subsidiaries	 	Eliminations	 	Consolidated	
Assets	 		 	 		 	 		 	 		 	 		
Current Assets:	 		 	 		 	 		 	 		 	 		
Cash and cash equivalents	$	4.2		 	$	8.5		 	$	55.9		 	$	—		 	$	68.6		
Marketable securities	2.7		 	—		 	—		 	—		 	2.7		
Restricted cash	6.4		 	—		 	0.8		 	—		 	7.2		
Accounts receivable — net	0.1		 	41.1		 	253.3		 	—		 	294.5		
Intercompany interest receivable	89.0		 	3.2		 	—		 	(92.2	)	 	—		
Inventories — net	—		 	309.5		 	352.8		 	—		 	662.3		
Deferred income taxes	98.3		 	—		 	18.4		 	—		 	116.7		
Other current assets	1.6		 	5.6		 	70.6		 	—		 	77.8		
Current assets of discontinued operation	—		 	—		 	7.1		 	—		 	7.1		
Total current assets	202.3		 	367.9		 	758.9		 	(92.2	)	 	1,236.9		
Property, plant and equipment — net	7.6		 	286.0		 	270.9		 	—		 	564.5		
Goodwill	—		 	969.6		 	238.4		 	—		 	1,208.0		
Other intangible assets — net	—		 	650.8		 	180.8		 	—		 	831.6		
Intercompany long-term notes receivable	1,544.0		 	158.5		 	819.5		 	(2,522.0	)	 	—		
Intercompany accounts receivable	—		 	1,252.4		 	1,661.1		 	(2,913.5	)	 	—		
Other non-current assets	56.9		 	7.7		 	79.9		 	—		 	144.5		
Long-term assets of discontinued operation	—		 	—		 	37.1		 	—		 	37.1		
Investment in affiliates	4,062.9		 	3,399.2		 	—		 	(7,462.1	)	 	—		
Total assets	$	5,873.7		 	$	7,092.1		 	$	4,046.6		 	$	(12,989.8	)	 	$	4,022.6		
Liabilities and Equity	 		 	 		 	 		 	 		 	 		
Current Liabilities:	 		 	 		 	 		 	 		 	 		
Accounts payable and accrued expenses	$	70.6		 	$	402.3		 	$	391.3		 	$	—		 	$	864.2		
Short-term borrowings and current portion of long-term debt	35.0		 	0.7		 	43.4		 	—		 	79.1		
Intercompany interest payable	3.2		 	86.0		 	3.0		 	(92.2	)	 	—		
Product warranties	—		 	52.9		 	40.2		 	—		 	93.1		
Customer advances	—		 	11.7		 	23.4		 	—		 	35.1		
Product liabilities	—		 	22.7		 	4.1		 	—		 	26.8		
Current liabilities of discontinued operation	—		 	—		 	5.2		 	—		 	5.2		
Total current liabilities	108.8		 	576.3		 	510.6		 	(92.2	)	 	1,103.5		
Non-Current Liabilities:	 		 	 		 	 		 	 		 	 		
Long-term debt, less current portion	1,800.6		 	3.6		 	6.7		 	—		 	1,810.9		
Deferred income taxes	210.6		 	—		 	47.6		 	—		 	258.2		
Pension obligations	55.8		 	12.7		 	22.1		 	—		 	90.6		
Postretirement health and other benefit obligations	55.9		 	—		 	3.9		 	—		 	59.8		
Long-term deferred revenue	—		 	5.9		 	28.3		 	—		 	34.2		
Intercompany long-term note payable	183.3		 	1,379.9		 	958.8		 	(2,522.0	)	 	—		
Intercompany accounts payable	2,855.7		 	—		 	57.9		 	(2,913.6	)	 	—		
Other non-current liabilities	111.9		 	39.0		 	24.7		 	—		 	175.6		
Long-term liabilities of discontinued operation	—		 	—		 	8.7		 	—		 	8.7		
Total non-current liabilities	5,273.8		 	1,441.1		 	1,158.7		 	(5,435.6	)	 	2,438.0		
Equity	 		 	 		 	 		 	 		 	 		
Manitowoc stockholders' equity	491.1		 	5,074.7		 	2,387.2		 	(7,462.0	)	 	491.0		
Noncontrolling interest	—		 	—		 	(9.9	)	 	—		 	(9.9	)	
Total equity	491.1		 	5,074.7		 	2,377.3		 	(7,462.0	)	 	481.1		
Total liabilities and equity	$	5,873.7		 	$	7,092.1		 	$	4,046.6		 	$	(12,989.8	)	 	$	4,022.6		

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The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2012
(In millions)

	
																				
 	Parent	 	Subsidiary
Guarantors	 	Non-
Guarantor
Subsidiaries	 	Eliminations	 	Consolidated	
Net cash provided by (used for) operating activities of continuing operations	$	(22.8	)	 	$	167.4		 	$	14.5		 	$	—		 	$	159.1		
Cash provided by (used for) operating activities of discontinued operations	—		 	(0.9	)	 	4.1		 	—		 	3.2		
Net cash provided by (used for) operating activities	$	(22.8	)	 	$	166.5		 	$	18.6		 	$	—		 	$	162.3		
Cash Flows from Investing:	 		 	 		 	 		 	 		 	 		
Capital expenditures	$	(1.4	)	 	$	(36.5	)	 	$	(35.0	)	 	$	—		 	$	(72.9	)	
Proceeds from sale of property, plant and equipment	—		 	—		 	0.9		 	—		 	0.9		
Restricted cash	1.0		 	—		 	(4.3	)	 	—		 	(3.3	)	
Intercompany investments	131.4		 	(175.4	)	 	(4.8	)	 	48.8		 	—		
Net cash provided by (used for) investing activities of continuing operations	$	131.0		 	$	(211.9	)	 	$	(43.2	)	 	$	48.8		 	$	(75.3	)	
Net cash provided by (used for) investing activities of discontinued operations	—		 	—		 	(0.2	)	 	—		 	(0.2	)	
Net cash provided by (used for) investing activities	$	131.0		 	$	(211.9	)	 	$	(43.4	)	 	$	48.8		 	$	(75.5	)	
Cash Flows from Financing:	 		 	 		 	 		 	 		 	 		
Payments on long-term debt	$	(439.7	)	 	$	(0.7	)	 	$	(55.0	)	 	$	—		 	$	(495.4	)	
Proceeds from long-term debt	300.0		 	—		 	83.3		 	—		 	383.3		
Proceeds on revolving credit facility—net	34.4		 	—		 	—		 	—		 	34.4		
Proceeds (payments) on notes financing—net	—		 	(2.1	)	 	(8.3	)	 	—		 	(10.4	)	
Proceeds from swap monetization	14.8		 	—		 	—		 	—		 	14.8		
Debt issue costs	(5.7	)	 	—		 	—		 	—		 	(5.7	)	
Dividends paid	(10.6	)	 	—		 	—		 	—		 	(10.6	)	
Exercises of stock options including windfall tax benefits	6.4		 	—		 	—		 	—		 	6.4		
Intercompany financing	—		 	43.7		 	5.1		 	(48.8	)	 	—		
Net cash provided by (used for) financing activities	$	(100.4	)	 	$	40.9		 	$	25.1		 	$	(48.8	)	 	$	(83.2	)	
Effect of exchange rate changes on cash	—		 	—		 	1.2		 	—		 	1.2		
Net increase (decrease) in cash and cash equivalents	7.8		 	(4.5	)	 	1.5		 	—		 	4.8		
Balance at beginning of period	4.2		 	8.5		 	55.9		 	—		 	68.6		
Balance at end of period	$	12.0		 	$	4.0		 	$	57.4		 	$	—		 	$	73.4		

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The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2011
(In millions)

	
																				
 	Parent	 	Subsidiary
Guarantors	 	Non-
Guarantor
Subsidiaries	 	Eliminations	 	Consolidated	
Net cash provided by (used for) operating activities of continuing operations	$	(59.8	)	 	$	70.5		 	$	21.8		 	$	—		 	$	32.5		
Cash used for operating activities of discontinued operations	—		 	(1.5	)	 	(15.4	)	 	—		 	(16.9	)	
Net cash provided by (used for) operating activities	$	(59.8	)	 	$	69.0		 	$	6.4		 	$	—		 	$	15.6		
Cash Flows from Investing:	 		 	 		 	 		 	 		 	 		
Capital expenditures	$	(0.4	)	 	$	(23.4	)	 	$	(41.0	)	 	$	—		 	$	(64.8	)	
Proceeds from sale of property, plant and equipment	—		 	0.1		 	17.4		 	—		 	17.5		
Restricted cash	2.0		 	—		 	0.2		 	—		 	2.2		
Proceeds from sale of business	—		 	143.6		 	—		 	—		 	143.6		
Intercompany investments	216.7		 	(164.5	)	 	(30.7	)	 	(21.5	)	 	—		
Net cash provided by (used for) investing activities of continuing operations	218.3		 	(44.2	)	 	(54.1	)	 	(21.5	)	 	98.5		
Net cash provided by (used for) investing activities of discontinued operations	—		 	—		 	(0.1	)	 	—		 	(0.1	)	
Net cash provided by (used for) investing activities	$	218.3		 	$	(44.2	)	 	$	(54.2	)	 	$	(21.5	)	 	$	98.4		
Cash Flows from Financing:	 		 	 		 	 		 	 		 	 		
Payments on long-term debt	$	(884.1	)	 	$	(0.7	)	 	$	(75.5	)	 	$	—		 	$	(960.3	)	
Proceeds from long-term debt	750.0		 	—		 	95.0		 	—		 	845.0		
Payments on revolving credit facility—net	(24.2	)	 	—		 	—		 	—		 	(24.2	)	
Proceeds from (payments on) notes financing—net	—		 	(2.6	)	 	17.4		 	—		 	14.8		
Proceeds from swap monetization	21.5		 	—		 	—		 	—		 	21.5		
Debt issue costs	(14.7	)	 	—		 	—		 	—		 	(14.7	)	
Dividends paid	(10.6	)	 	—		 	—		 	—		 	(10.6	)	
Exercises of stock options including windfall tax benefits	2.6		 	—		 	—		 	—		 	2.6		
Intercompany financing	(0.1	)	 	(32.7	)	 	11.3		 	21.5		 	—		
Net cash provided by (used for) financing activities	$	(159.6	)	 	$	(36.0	)	 	$	48.2		 	$	21.5		 	$	(125.9	)	
Effect of exchange rate changes on cash	—		 	—		 	(3.2	)	 	—		 	(3.2	)	
Net increase (decrease) in cash and cash equivalents	(1.1	)	 	(11.2	)	 	(2.8	)	 	—		 	(15.1	)	
Balance at beginning of period	5.3		 	19.7		 	58.7		 	—		 	83.7		
Balance at end of period	$	4.2		 	$	8.5		 	$	55.9		 	$	—		 	$	68.6		

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The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2010
(In millions)

	
																				
 	Parent	 	Subsidiary
Guarantors	 	Non-
Guarantor
Subsidiaries	 	Eliminations	 	Consolidated	
Net cash provided by (used for) operating activities of continuing operations	$	(28.1	)	 	$	124.0		 	$	106.6		 	$	—		 	$	202.5		
Cash provided by (used for) operating activities of discontinued operations	—		 	(0.8	)	 	7.6		 	—		 	6.8		
Net cash provided by (used for) operating activities	$	(28.1	)	 	$	123.2		 	$	114.2		 	$	—		 	$	209.3		
Cash Flows from Investing:	 		 	 		 	 		 	 		 	 		
Capital expenditures	$	(0.9	)	 	$	(16.2	)	 	$	(18.8	)	 	$	—		 	$	(35.9	)	
Proceeds from sale of property, plant and equipment	0.5		 	1.1		 	21.6		 	—		 	23.2		
Restricted cash	(3.3	)	 	—		 	0.3		 	—		 	(3.0	)	
Business acquisition, net of cash acquired	—		 	(4.8	)	 	—		 	—		 	(4.8	)	
Intercompany investments	197.3		 	(36.2	)	 	(49.9	)	 	(111.2	)	 	—		
Net cash provided by (used for) investing activities of continuing operations	193.6		 	(56.1	)	 	(46.8	)	 	(111.2	)	 	(20.5	)	
Net cash provided by (used for) investing activities of discontinued operations	—		 	—		 	(4.4	)	 	—		 	(4.4	)	
Net cash provided by (used for) investing activities	$	193.6		 	$	(56.1	)	 	$	(51.2	)	 	$	(111.2	)	 	$	(24.9	)	
Cash Flows from Financing:	 		 	 		 	 		 	 		 	 		
Payments on long-term debt	$	(1,165.7	)	 	$	(20.7	)	 	$	(64.4	)	 	$	—		 	$	(1,250.8	)	
Proceeds from long-term debt	1,000.0		 	10.0		 	53.0		 	—		 	1,063.0		
Proceeds from (payments on) revolving credit facility—net	24.2		 	—		 	—		 	—		 	24.2		
Proceeds from securitization	—		 	101.0		 	—		 	—		 	101.0		
Payments on securitization	—		 	(101.0	)	 	—		 	—		 	(101.0	)	
Proceeds from (payments on) notes financing—net	—		 	(3.2	)	 	(0.9	)	 	—		 	(4.1	)	
Debt issue costs	(27.0	)	 	—		 	—		 	—		 	(27.0	)	
Dividends paid	(10.6	)	 	—		 	—		 	—		 	(10.6	)	
Exercises of stock options including windfall tax benefits	0.9		 	—		 	—		 	—		 	0.9		
Intercompany financing	—		 	(40.5	)	 	(70.7	)	 	111.2		 	—		
Net cash provided by (used for) financing activities	$	(178.2	)	 	$	(54.4	)	 	$	(83.0	)	 	$	111.2		 	$	(204.4	)	
Effect of exchange rate changes on cash	—		 	—		 	—		 	—		 	—		
Net increase (decrease) in cash and cash equivalents	(12.7	)	 	12.7		 	(20.0	)	 	—		 	(20.0	)	
Balance at beginning of period	18.0		 	7.0		 	78.7		 	—		 	103.7		
Balance at end of period	$	5.3		 	$	19.7		 	$	58.7		 	$	—		 	$	83.7		

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24. Quarterly Financial Data (Unaudited)
The following table presents quarterly financial data for 2012 and 2011 : 

																																	
 	 	2012	 	2011	
(in millions, except per share data)	 	First	 	Second	 	Third	 	Fourth	 	First	 	Second	 	Third	 	Fourth	
Net sales	 	$	851.9		 	$	997.2		 	$	947.5		 	$	1,130.4		 	$	724.5		 	$	939.8		 	$	927.0		 	$	1,027.9		
Gross profit	 	203.3		 	251.2		 	233.9		 	246.0		 	178.5		 	221.7		 	220.5		 	206.0		
Earnings (loss) from continuing operations	 	9.6		 	58.1		 	32.9		 	29.7		 	(15.7	)	 	1.6		 	33.8		 	14.2		
Discontinued operations:	 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		
Earnings (loss) from discontinued operations, net of income taxes	 	(0.4	)	 	0.4		 	0.3		 	—		 	(2.9	)	 	(0.1	)	 	0.5		 	(0.9	)	
Loss on sale of discontinued operations, net of income taxes	 	—		 	—		 	—		 	—		 	(33.4	)	 	(0.2	)	 	—		 	(1.0	)	
Net earnings (loss)	 	(2.2	)	 	43.0		 	19.7		 	32.1		 	(53.4	)	 	1.6		 	21.6		 	12.5		
Less: Loss attributable to noncontrolling interest, net of tax	 	(1.9	)	 	(2.3	)	 	(2.5	)	 	(2.4	)	 	(0.9	)	 	(1.1	)	 	(2.1	)	 	(2.4	)	
Net earnings (loss) attributable to Manitowoc	 	$	(0.3	)	 	$	45.3		 	$	22.2		 	$	34.5		 	$	(52.5	)	 	$	2.7		 	$	23.7		 	$	14.9		
Basic earnings per share:	 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		
Earnings (loss) from continuing operations attributable to Manitowoc common shareholders	 	$	—		 	$	0.34		 	$	0.17		 	$	0.26		 	$	(0.12	)	 	$	0.02		 	$	0.18		 	$	0.13		
Discontinued operations:	 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		
Loss from discontinued operations attributable to Manitowoc common shareholders	 	—		 	—		 	—		 	—		 	(0.02	)	 	—		 	—		 	(0.01	)	
Loss on sale of discontinued operations, net of income taxes	 	—		 	—		 	—		 	—		 	(0.26	)	 	—		 	—		 	(0.01	)	
Earnings (loss) per share attributable to Manitowoc common shareholders	 	$	—		 	$	0.35		 	$	0.17		 	$	0.26		 	$	(0.40	)	 	$	0.02		 	$	0.18		 	$	0.11		
Diluted earnings per share:	 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		
Earnings (loss) from continuing operations attributable to Manitowoc common shareholders	 	$	—		 	$	0.34		 	$	0.17		 	$	0.26		 	$	(0.12	)	 	$	0.02		 	$	0.17		 	$	0.13		
Discontinued operations:	 	 		 	 		 	 		 	 		 	 		 	 		 	 		 	 		
Loss from discontinued operations attributable to Manitowoc common shareholders	 	—		 	—		 	—		 	—		 	(0.02	)	 	—		 	—		 	(0.01	)	
Loss on sale of discontinued operations, net of income taxes	 	—		 	—		 	—		 	—		 	(0.26	)	 	—		 	—		 	(0.01	)	
Earnings (loss) per share attributable to Manitowoc common shareholders	 	$	—		 	$	0.34		 	$	0.17		 	$	0.26		 	$	(0.40	)	 	$	0.02		 	$	0.18		 	$	0.11		
Dividends per common share	 	$	—		 	$	—		 	$	—		 	$	0.08		 	$	—		 	$	—		 	$	—		 	$	0.08		
During the third quarter of 2012, the company revised previously issued financial statements. See Note 1, "Company and Basis of Presentation" for further discussion of these revisions. Items (1) - (7) below describe the impact of these revisions on the

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quarterly results. The items below have not been adjusted for the results of the Jackson business which has been classified as discontinued operations for all periods presented. See further detail at Note 4, "Discontinued Operations."

1.	Gross profit was impacted as follows, increase/(decrease)	
		
a.	2012: Q1 - $(1.1) million ; Q2 - $4.0 million	
		
b.	2011: Q1 - $(0.6) million ; Q2 - $(0.9) million ; Q3 - $(0.3) million ; Q4 - $(1.1) million	
		
2.	Earnings (loss) from continuing operations was impacted as follows, increase/(decrease)	
		
a.	2012: Q1 - $(1.1) million ; Q2 - $4.0 million	
		
b.	2011: Q1 - $(0.6) million ; Q2 - $(0.9) million ; Q3 - $(0.3) million ; Q4 - $(1.1) million	
		
3.	Net earnings (loss) was impacted as follows, increase/(decrease)	
		
a.	2012: Q1 - $(0.4) million ; Q2 - $2.8 million	
		
b.	2011: Q1 - $(0.1) million ; Q2 - $(0.1) million ; Q3 - $0.1 million ; Q4 - $(0.6) million	
		
4.	Net earnings (loss) attributable to Manitowoc was impacted as follows, increase/(decrease)	
		
a.	2012: Q1 - $(0.4) million ; Q2 - $2.8 million	
		
b.	2011: Q1 - $(0.1) million ; Q2 - $(0.1) million ; Q3 - $0.1 million ; Q4 - $(0.6) million	
		
5.	Basic earnings per share from continuing operations were impacted as follows, increase/(decrease)	
		
a.	2012: Q2 - $0.02	
		
b.	2011: Q1 - $(0.01) ; Q2 - $(0.01)	
		
6.	Diluted earnings per share from continuing operations were impacted as follows, increase/(decrease)	
		
a.	2012: Q2 - $0.02	
		
b.	2011: Q1 - $(0.01)	
		
7.	Basic and diluted earnings per share attributable to Manitowoc common shareholders were impacted as follows, increase/(decrease)	
		
a.	2012: Q2 - $0.02	

25. Subsequent Events
On January 24, 2013 the company announced a plan to form a new joint venture with Shantui Investment Co., Ltd. to build mobile cranes in China for both the domestic and export markets, and the name of the joint venture will be Shantui Manitowoc Crane Company, Ltd. and operations will begin once all relevant government approvals are received.
On January 28, 2013 the company sold its Jackson business, which designs, manufactures and sells warewashing equipment and other equipment including racks and tables to Hoshizaki USA Holdings, Inc. for approximately $38.5 million . Net proceeds were used to reduce ratably the then-outstanding balances of Term Loan A and B.

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Item 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
Item 9A. CONTROLS AND PROCEDURES
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
The company’s management, with the participation of the company’s Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“the Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the company’s disclosure controls and procedures are effective in recording, processing, summarizing, and reporting, on a timely basis, information required to be disclosed by the company in the reports that it files or submits under the Exchange Act, and that such information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely discussions regarding required disclosure.
Management’s Report on Internal Control Over Financial Reporting
The company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The company’s management, with the participation of the company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the company’s internal control over financial reporting based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, the company’s management has concluded that, as of December 31, 2012 , the company’s internal control over financial reporting was effective.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The effectiveness of the company’s internal control over financial reporting as of December 31, 2012 , has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.
Changes in Internal Control Over Financial Reporting
During the fourth quarter of 2012 , there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. OTHER INFORMATION
None.

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PART III
Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by this item is incorporated by reference from the sections of the 2013 Proxy Statement captioned “Section 16(a) Beneficial Ownership Reporting Compliance,” “Audit Committee” and “Election of Directors.”  See also “Executive Officers of the Registrant” in Part I hereof, which is incorporated herein by reference.
The company has a Global Ethics Policy and other policies relating to business conduct, that pertain to all employees, which can be viewed at the company’s website www.manitowoc.com.  The company has adopted a code of ethics that applies to the company’s principal executive officer, principal financial officer, and controller, which is part of the company’s Global Ethics Policy and other policies related to business conduct.
Item 11. EXECUTIVE COMPENSATION
The information required by this item is incorporated by reference from the sections of the 2013 Proxy Statement captioned “Compensation of Directors,” “Executive Compensation,” “Report of the Compensation and Benefits Committee on Executive Compensation,” and “Contingent Employment Agreements.” 
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The information required by this item is incorporated by reference from the sections of the 2013 Proxy Statement captioned “Ownership of Securities” and the subsection captioned “Equity Compensation Plans.”
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this item is incorporated by reference from the section of the 2013 Proxy Statement captioned “Governance of the Board and its Committees — Governance of the Company.”
Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
The information required by this item is incorporated by reference from the section of the 2013 Proxy Statement captioned “Other Information — Independent Registered Public Accounting Firm.”

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PART IV
Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Documents filed as part of this Report.

				
(1)	Financial Statements:	
 	 	 	
 	 	The following Consolidated Financial Statements are filed as part of this report under Item 8, “Financial Statements and Supplementary Data.”	
 	 	 	
 	 	Report of Independent Registered Public Accounting Firm	
 	 	 	
 	 	Consolidated Statements of Operations	
 	 	 	
 	 	Consolidated Statements of Comprehensive Income (Loss)	
 	 	 	
 	 	Consolidated Balance Sheets	
 	 	 	
 	 	Consolidated Statements of Cash Flows	
 	 	 	
 	 	Consolidated Statements of Equity	
 	 	 	
 	 	Notes to Consolidated Financial Statements	
 	 	 	
(2)	Financial Statement Schedule:	
 	 	 	
 	 	Schedule II — Valuation and Qualifying Accounts	

	
					
Schedule	 	Description	 	Filed Herewith	
 	 	 	 	 	
II	 	Valuation and Qualifying Accounts	 	X	
All other financial statement schedules not listed have been omitted since the required information is included in the Consolidated Financial Statements or the Notes thereto, or is not applicable or required under rules of Regulation S-X.
(b) Exhibits:
See Index to Exhibits immediately following the signature page of this report, which is incorporated herein by reference.

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THE MANITOWOC COMPANY, INC
AND SUBSIDIARIES
Schedule II: Valuation and Qualifying Accounts
For The Years Ended December 31, 2012, 2011 and 2010
(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, 2010	 		 	 		 	 		 	 		 	 		
Allowance for doubtful accounts	$	46.4		 	$	3.3		 	$	(20.6	)	 	$	(1.5	)	 	$	27.6		
Inventory obsolescence reserve	$	88.2		 	$	23.2		 	$	(28.6	)	 	$	(3.2	)	 	$	79.6		
Deferred tax valuation allowance	$	70.2		 	$	52.1		 	$	—		 	$	(2.1	)	 	$	120.2		
Year End December 31, 2011	 		 	 		 	 		 	 		 	 		
Allowance for doubtful accounts	$	27.6		 	$	0.5		 	$	(6.4	)	 	$	(8.9	)	 	$	12.8		
Inventory obsolescence reserve	$	79.6		 	$	18.9		 	$	(23.6	)	 	$	(0.1	)	 	$	74.8		
Deferred tax valuation allowance	$	120.2		 	$	12.3		 	$	—		 	$	(7.3	)	 	$	125.2		
Year End December 31, 2012	 		 	 		 	 		 	 		 	 		
Allowance for doubtful accounts	$	12.8		 	$	6.7		 	$	(6.1	)	 	$	0.1		 	$	13.5		
Inventory obsolescence reserve	$	74.8		 	$	18.5		 	$	(19.9	)	 	$	0.8		 	$	74.2		
Deferred tax valuation allowance	$	125.2		 	$	40.3		 	$	—		 	$	3.4		 	$	168.9		

SIGNATURES  
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized:
Date: February 28, 2013

		
The Manitowoc Company, Inc.	 	
(Registrant)	 	
 	 	
/s/ Glen E. Tellock	 	
Glen E. Tellock	 	
Chairman and Chief Executive Officer	 	
 	 	
/s/ Carl J. Laurino	 	
Carl J. Laurino	 	
Senior Vice President and Chief Financial Officer	 	
Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons constituting a majority of the Board of Directors on behalf of the registrant and in the capacities and on the dates indicated: 

			
/s/ Glen E. Tellock	 	 	
Glen E. Tellock, Chairman and Chief Executive Officer	 	February 28, 2013	
 	 	 	
/s/ Carl J. Laurino	 	 	
Carl J. Laurino, Senior Vice President and Chief Financial Officer	 	February 28, 2013	
 	 	 	
/s/ Keith D. Nosbusch	 	 	
Keith D. Nosbusch, Director	 	February 28, 2013	
 	 	 	
/s/ Robert C. Stift	 	 	
Robert C. Stift, Director	 	February 28, 2013	
 	 	 	
/s/ James L. Packard	 	 	
James L. Packard, Director	 	February 28, 2013	
 	 	 	
/s/ Kenneth W. Krueger	 	 	
Kenneth W. Krueger, Director	 	February 28, 2013	
 	 	 	
/s/ Cynthia M. Egnotovich	 	 	
Cynthia M. Egnotovich, Director	 	February 28, 2013	
 	 	 	
/s/ Donald M. Condon, Jr.	 	 	
Donald M. Condon, Jr., Director	 	February 28, 2013	
 	 	 	
/s/ Roy V. Armes	 	 	
Roy V. Armes, Director	 	February 28, 2013	
 	 	 	
/s/ Joan K. Chow	 	 	
Joan K. Chow, Director	 	February 28, 2013	

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THE MANITOWOC COMPANY, INC.
ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 2012
INDEX TO EXHIBITS

					
Exhibit No.	 	Description	 	Filed/Furnished
Herewith	
 	 	 	 	 	
1.1	 	Underwriting Agreement dated October 4, 2012 among The Manitowoc Company, Inc., the Guarantors named therein (filed as Exhibit 1.1 to the company's Current Report on Form 8-K filed October 5, 2012 and incorporated herein by reference.)	 	 	
 	 	 	 	 	
3.1	 	Amended and Restated Articles of Incorporation, as amended on November 5, 1984, May 5, 1998, March 31, 2006, and July 26, 2007 (filed as Exhibit 99.1 to the company’s Current Report on Form 8-K filed on August 1, 2007 and incorporated herein by reference).	 	 	
 	 	 	 	 	
3.2	 	Restated By-laws (filed as Exhibit 3.2 to the company’s Current Report on Form 8-K filed on May 7, 2007 and incorporated herein by reference).	 	 	
 	 	 	 	 	
4.1	 	Rights Agreement dated March 21, 2007 between the Registrant and Computershare Trust Company, N.A. (filed as Exhibit 4.1 to the company’s Report on Form 8-K dated as of March 21, 2007 and incorporated herein by reference).	 	 	
 	 	 	 	 	
4.2(a)*	 	Indenture, dated as of November 6, 2003, by and between The Manitowoc Company, Inc., the Guarantors named therein, and BNY Midwest Trust Company, as Trustee (filed as Exhibit 4.1 to the company’s current Report on Form 8-K dated as of November 6, 2003 and incorporated herein by reference).	 	 	
 	 	 	 	 	
4.2(b)	 	Indenture, dated as of February 8, 2010, between The Manitowoc Company, Inc. and Wells Fargo Bank, National Association, a national banking association, as Trustee (filed as Exhibit 4.1 to the company’s Current Report on Form 8-K filed on February 10, 2010 and incorporated herein by reference).	 	 	
 	 	 	 	 	
4.2(c)	 	First Supplemental Indenture, dated as of February 8, 2010, among The Manitowoc Company, Inc., the Guarantors named therein, and Wells Fargo Bank, National Association, a national banking association, as Trustee (filed as Exhibit 4.2 to the company’s Current Report on Form 8-K filed on February 10, 2010 and incorporated herein by reference).	 	 	
 	 	 	 	 	
4.2(d)	 	Second Supplemental Indenture, dated as of October 18, 2010, among The Manitowoc Company, Inc., the Guarantors named therein, and Wells Fargo Bank, National Association, as Trustee (filed as Exhibit 4.1 to the company’s Current Report on Form 8-K filed on October 20, 2010 and incorporated herein by reference).	 	 	
 	 	 	 	 	
4.2(e)	 	Fourth Supplemental Indenture, dated as of October 19, 2012, among The Manitowoc Company, Inc., the Guarantors named therein, and Wells Fargo Bank, National Association, as Trustee (filed as Exhibit 4.1 to the company's Current Report on Form 8-K filed on October 22, 2012 and incorporated herein by reference.)

4.3	 	Articles III, V, and VIII of the Amended and Restated Articles of Incorporation (see Exhibit 3.1 above)	 	 	

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4.4(a)	 	Amended and Restated Credit Agreement dated as of August 25, 2008 by and among The Manitowoc Company, Inc., as Borrower, the Subsidiary Borrowers party thereto, the lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (filed as Exhibit 4.1 to the company’s Quarterly Report on Form 10-Q for the period ended September 30, 2008), as amended on December 19, 2008, with such amendment filed as Exhibit 4.6 to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and as further amended on June 15, 2009, with such amendment filed as Exhibit 4.1 to the company’s Current Report on Form 8-K, dated June 12, 2009, and as further amended on January 21, 2010, with such amendment filed as Exhibit 4.1 to the company’s Current Report on Form 8-K, dated January 21, 2010, and as further amended on October 7, 2010, with such amendment filed as Exhibit 4.1 to the company’s Current Report on Form 8-K, dated October 7, 2010, all of which are incorporated herein by reference. (Superseded)	 	 	
 	 	 	 	 	
4.4(b)	 	Second Amended and Restated Credit Agreement, dated as of May 13, 2011, by and among The Manitowoc Company, Inc., the subsidiary borrowers named therein, the lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 4.1 to the company’s current report on Form 8-K dated as of May 13, 2011 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.1**	 	The Manitowoc Company, Inc. Deferred Compensation Plan,as amended and restated through December 31, 2008, (filed as exhibit 10.1 to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.2**	 	The Manitowoc Company, Inc. Management Incentive Compensation Plan (Economic Value Added (EVA) Bonus Plan Effective July 4, 1993, as amended (filed as Exhibit 10.2 to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.2(a)**	 	Short-Term Incentive Plan, as amended, effective January 1, 2013. (Reflects non-material changes finalized December 2012.)	 	X(1)	
 	 	 	 	 	
10.3(a)**	 	Form of Contingent Employment Agreement between the company and the Chief Executive Officer, Glen E. Tellock. (Reflects non-material changes finalized December 2012.)	 	X(1)	
 	 	 	 	 	
10.3(b)**	 	Form of Contingent Employment Agreement between the company and the following executive officers of the Company: Eric P. Etchart, Carl J. Laurino, Maurice D. Jones, Michael J. Kachmer, Thomas G. Musial, and Dean J. Nolden. (Reflects non-material changes finalized December 2012.)	 	X(1)	
 	 	 	 	 	
10.4**	 	Form of Indemnity Agreement between the company and each of the directors, executive officers and certain other employees of the company (filed as Exhibit 10(b) to the company’s Annual Report on Form 10-K for the fiscal year ended July 1, 1989 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.6(c)**	 	Supplemental Retirement Plan dated May 2000, as amended and restated through December 31, 2008, with such Amended and Restated plan filed as Exhibit 10.6(c) to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and incorporated herein by reference.	 	 	
 	 	 	 	 	
10.7(a)**	 	The Manitowoc Company, Inc. 1995 Stock Plan, as amended (filed as Exhibit 10.7(a) to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and incorporated herein by reference).	 	 	

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10.7(b)**	 	The Manitowoc Company, Inc. 1999 Non-Employee Director Stock Option Plan, as	 	 	

					
 	 	amended (filed as Exhibit 10.7(b) to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.7(c)**	 	The Manitowoc Company, Inc. 2003 Incentive Stock and Awards Plan, as amended, effective May 1, 2012 with such amended plan filed as Exhibit 10.7(c) to the company’s Proxy Statement for the 2012 annual meeting, filed on March 22, 2012 and incorporated herein by reference.	 	 	
 	 	 	 	 	
10.7(d)**	 	The Manitowoc Company, Inc. 2004 Non-Employee Director Stock and Award Plan, as amended on December 17, 2008, effective January 1, 2005, with such amended plan filed as Exhibit 10.7(e) to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and incorporated herein by reference.	 	 	
 	 	 	 	 	
10.8**	 	The Manitowoc Company, Inc. Incentive Stock Option Agreement with Vesting Provisions (filed as Exhibit 10.1 to the company’s Report on Form 8-K dated as of February 25, 2005 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.9**	 	The Manitowoc Company, Inc. Non-Qualified Stock Option Agreement with Vesting Provisions (filed as Exhibit 10.2 to the company’s Report on Form 8-K dated as of February 25, 2005 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.10(a)**	 	The Manitowoc Company, Inc. Award Agreement for Restricted Stock Awards under The Manitowoc Company, Inc. 2003 Incentive Stock and Awards Plan, amended February 27, 2007(filed as Exhibit 10.10 to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.10(b)**	 	The Manitowoc Company, Inc. Performance Share Award Agreement (filed as Exhibit 10.10 to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010 and incorporated herein by reference).	 	 	
 	 	 	 	 	
10.11**	 	The Manitowoc Company, Inc. Award Agreement for the 2004 Non-employee Director Stock and Awards Plan, as amended effective May 3, 2006 and February 27, 2007 (filed as Exhibit 10.11 to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and incorporated herein by reference).	 	 	

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10.12(a)	 	Third Amended and Restated Receivables Purchase Agreement among Manitowoc Funding, LLC, as U.S. Seller, Manitowoc Cayman Islands Funding Ltd., as Cayman Seller, The Manitowoc Company, Inc. as a Servicer, Garland Commercial Ranges Limited, as a Servicer, Convotherm Elektrogeräte GmbH, as a Servicer, Hannover funding Company, LLC, as Purchaser, and Norddeutsche Landesbank Girozentrale, as Agent, dated as of September 27, 2011 (filed as Exhibit 10.1 to the company’s current report on Form 8-K dated September 27, 2011 and incorporated herein by reference). Amendment No. 1 dated December 16, 2011 to the Third Amended and Restated Receivables Purchase Agreement among Manitowoc funding, LLC, as U.S. Seller, Manitowoc Cayman Islands Funding Ltd., as Cayman Seller, The Manitowoc Company, Inc. as a Servicer, Garland Commercial Ranges Limited, as a Servicer, Convotherm Elektrogeräte GmbH, as a Servicer, Hannover funding Company, LLC, as Purchaser, and Norddeutsche Landesbank Girozentrale, as Agent, dated as of September 27, 2011. (filed as Exhibit 12(c) to the company's annual report on Form 10-K in the fiscal year ended December 31, 2011 and incorporated herein by reference). (Superseded.)	 	 	
 	 	 	 	 	
10.12(b)	 	Fourth Amended and Restated Receivables Purchase Agreement among Manitowoc Funding, LLC, as U.S. Seller, Manitowoc Cayman Islands Funding Ltd., as Cayman Seller, The Manitowoc Company, Inc. as a Servicer, Garland Commercial Ranges Limited, as a Servicer, Convotherm Elektrogeräte GmbH, as a Servicer, and Wells Fargo, N.A., as Purchaser and Agent dated as of September 26, 2012 (filed as Exhibit 10.1 to the company's Current Report on Form 8-K filed September 28, 2012 and incorporated herein by reference).

10.15	 	The Manitowoc Company, Inc. Severance Pay Plan adopted by the Board of Directors as of May 4, 2009 (filed as Exhibit 10.13 to the company’s Quarterly Report on Form 10-Q for the period ended September 30, 2009, and incorporated herein by reference.)	 	 	
 	 	 	 	 	
11	 	Statement regarding computation of basic and diluted earnings per share (see Note 14, “Earnings Per Share” to the Consolidated Financial Statements included herein).	 	 	
 	 	 	 	 	
12.1	 	Statement of Computation of Ratio of Earnings to Fixed Charges	 	X(1)	
 	 	 	 	 	
21	 	Subsidiaries of The Manitowoc Company, Inc.	 	X(1)	
 	 	 	 	 	
23.1	 	Consent of PricewaterhouseCoopers LLP, the company’s Independent Registered Public Accounting Firm	 	X(1)	
 	 	 	 	 	
31	 	Rule 13a - 14(a)/15d - 14(a) Certifications	 	X(1)	
 	 	 	 	 	
32.1	 	Certification of CEO pursuant to 18 U.S.C. Section 1350	 	X(2)	
 	 	 	 	 	
32.2	 	Certification of CFO pursuant to 18 U.S.C. Section 1350	 	X(2)	
 	 	 	 	 	
101	 	The following materials from the company’s Annual Report on Form 10-K for the year ended December 31, 2012 formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Statements of Income, (ii) the Consolidated Statements of Comprehensive Income (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statement of Equity and (vi) related notes.	 	X(1)	
(1)  Filed Herewith
(2)  Furnished Herewith

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* Pursuant to Item 601(b)(2) of Regulation S-K, the Registrant agrees to furnish to the Securities and Exchange Commission upon request a copy of any unfiled exhibits or schedules to such documents. 
** Management contracts and executive compensation plans and arrangements required to be filed as exhibits pursuant to item 15(c) of Form 10-K.

116

Exhibit 10.2(a)
SHORT-TERM INCENTIVE PLAN
Effective January 1, 2005 

 As Amended Effective January 1, 2013

ARTICLE I
Statement of Purpose

1.1	The purpose of the Plan is to provide a system of incentive compensation which will promote the maximization of shareholder value. In order to align eligible salaried employees’ incentives with shareholder interests, incentive compensation will reward the creation of value. The Plan will tie incentive compensation to Economic Value Added (“EVA®”) and, thereby, reward employees for creating value. Effective for the fiscal year commencing January 1, 2005, this Plan replaced the Management Incentive Compensation Plan (Economic Value Added (EVA®) Bonus Plan), created effective July 4, 1993, as amended (the “Prior Plan”). The Plan has been amended effective January 1, 2007, January 1, 2008 and January 1, 2012 and is being further amended effective January 1, 2013.	

1.2	EVA is the performance measure of value creation. EVA reflects the benefits and costs of capital employment. Employees create value when they employ capital in an endeavor that generates a return that exceeds the cost of the capital employed. Employees destroy value when they employ capital in an endeavor that generates a return that is less than the cost of capital employed. By subtracting a capital charge from the operating profits generated by a business group, EVA measures the total value created by employees.	
EVA = (Net Operating Profit After Tax - Capital Charge)

1.3	Each Plan Participant is assigned a target annual incentive award (bonus) opportunity (expressed as a percentage of base salary) for a year. A Participant’s target award opportunity, in any one year, is the result of multiplying the Participant’s Target Bonus Percentage by the Participant’s Base Pay. A Participant’s incentive award earned in any one year is the result of multiplying the Actual Bonus Percentage by the Participant’s Base Pay, subject to any reduction determined by the Committee in its sole discretion based on individual or other additional performance factors described in Section 4.3 . Incentive awards earned can range from 0% to 200% of the target award opportunity. Earned awards will be fully paid out after the end of the year.	

1.1	With respect to any corporate officer as of the February Committee meeting in a given calendar year (“Covered Officer”), the Plan is intended to qualify for the “performance-	

1

based compensation” exception from the deductibility limitation under Internal Revenue Code Section 162(m) and shall be so interpreted and administered.
ARTICLE II

Definition of EVA and the Components of EVA
Unless the context provides a different meaning, the following terms shall have the following meanings.

2.1	“ Participating Group ” means a business division or group of business divisions which are uniquely identified for the purpose of calculating EVA and EVA-based bonus awards. Some Participants’ awards may be a mixture of more than one Participating Group. For the purpose of this Plan, the Participating Groups are determined by the Committee and may be revised by the Committee from time-to-time as they deem appropriate, provided that the Participating Groups for any particular year shall be established no later than the February Committee meeting.	

2.2	“ Capital ” means the net investment employed in the operations of each Participating Group. The components of Capital are as follows:	

			
 	Gross Accounts Receivable (including trade A/R from another Manitowoc unit – See Notes 2 and 3)	
Plus:	Gross FIFO Inventory (See Note 3)	
Plus:	Other Current Assets	
Less:	Non-Interest Bearing Current Liabilities (NIBCL’s - See Note 1)	
Plus:	Net PP&E	
Plus:	Other Operating Assets	
Plus:	Capitalized Research & Development	
Plus:	Goodwill acquired after July 3, 1993	
Plus:	Accumulated Amortization on Goodwill acquired after July 3, 1993	
Plus (Less):	Special Items	 	
Equals:	Capital	

Notes:

(1)	NIBCL’s include trade A/P to another Manitowoc unit (see Note 2), and include liabilities associated with receivable factoring programs as well as capital lease obligations.	

(2)	Intercompany trade payables and receivables will be excluded from EVA capital if outstanding longer than the approved payment date per intercompany payment terms.	

2

		
(3)	Accounts receivable reserve balances recorded at acquisition date will be treated as reductions to EVA capital and changes excluded from NOPAT up to the balance in the acquisition reserve for a 12-month period subsequent to the acquisition date. Inventory reserve balances recorded at acquisition date will be treated the same as accounts receivable above except for spare parts inventory which will be excluded from Capital and NOPAT over a three-year period at a rate of 1/3 less each year.	

2.3	Each component of Capital will be measured by computing an average balance based on the ending monthly balance for the twelve months of the Fiscal Year.	

2.4	“ Cost of Capital ” or “ C *” means the weighted average of the after tax cost of debt and equity for the year in question. The Cost of Capital will be reviewed annually and revised if it has changed significantly. The Cost of Capital is determined pursuant to Exhibit A and the following:	

(a)	Cost of Equity = Risk Free Rate + (Beta x Market Risk Premium)	

(b)	Debt Cost of Capital = Debt Yield x (1 - Tax Rate)	

(c)	The weighted average of the Cost of Equity and the Debt Cost of Capital is determined by reference to a fixed debt to capital ratio of 40%. The Risk Free Rate is the average daily closing yield rate on 30 year U.S. Government Bonds for the month of December immediately preceding the Plan year, the Beta is one, and the Market Risk Premium is 5%. The Debt Yield is the projected weighted average yield on the Company’s long term obligations for the 12 month period ending December 31 of the Plan year, and the Tax Rate is determined as set forth in subparagraph 2.4(e).	
The debt to capital ratio, Beta, and Market Risk Premium assumptions will be reviewed and updated if necessary at least every three years.

(d)	Short-term debt is to be treated as long-term debt for purposes of computing the Cost of Capital.	

(e)	For purposes of determining the Cost of Capital, the “Tax Rate” for any particular year shall be equal to the audited tax rate of the Company for the previous calendar year.	

2.5	“ Capital Charge ” means the deemed opportunity cost of employing Capital in the business of each Participating Group. The Capital Charge is computed as follows:	
Capital Charge = Capital x Cost of Capital (C*)

2.6	“ Net Operating Profit ” or “ NOP ” and “ Net Operating Profit After Tax ” or “ NOPAT ”	
“NOP” means the before tax cash earnings attributable to the capital employed in the Participating Group for the year in question, and “NOPAT” means the after tax cash earnings

3

attributable to the capital employed in the Participating Group for the year in question. The components of NOP and NOPAT are as follows:

		
 	Operating Earnings	
Plus:	Increase (Decrease) in Capitalized R & D (See Note 1)	
Plus:	Increase (Decrease) in Bad Debt Reserve	
Plus:	Increase (Decrease) in Inventory Reserves	
Plus:	Amortization of Goodwill (resulting from annual US GAAP impairment analyses)	
Less:	Other Expense (Excluding interest on debt and including interest on factored receivables)	
Plus:	Other Income (Excluding investment income)	
Equals:	Net Operating Profit (NOP)	
Less:	Taxes (See Note 2)	
Equals:	Net Operating Profit After Tax (NOPAT)	

(1)	R & D is Capitalized, and amortized over a five-year period and is defined in the U.S. Federal R&D Tax Credit Regulation.	

(2)	For purposes of calculating NOPAT, Taxes will be the actual annual effective tax rate for the Company as a whole for the particular year.	

2.7	“ Economic Value Added ” or “EVA” means for Participants in the salary grade of the Company of 210 and above, the NOPAT that remains after subtracting the Capital Charge, expressed as follows:	

		
 	NOPAT	
Less:	Capital Charge	
Equals:	EVA (which may be positive or negative)	

“ Economic Value Added ” or “EVA” means for Participants in the salary grade of the Company of 209 and below, the NOP that remains after subtracting the Capital Charge, expressed as follows:

		
 	NOP	
Less:	Capital Charge	
Equals:	EVA (which may be positive or negative)	

ARTICLE III

4

Definition and Computation of Target Bonus Award

3.1	“ Actual EVA ” means the EVA as calculated for each Participating Group for the year in question.	

3.2	“ Target EVA ” for the year in question means the level of EVA that is expected in order for the Participating Group to receive the Target Bonus Award. Target EVA for the year in question is determined as follows:	
“Target EVA” = Last Year’s Actual EVA+ Expected Improvement in EVA

3.3	“ Expected Improvement in EVA ” means the constant EVA improvement that is added to shift the target up each year. It is determined by the expected growth in EVA per year. The Expected Improvement factors are determined by the Committee and will be evaluated and recalibrated by the Committee, as appropriate, no less than every three years. Expected Improvement may be different for each Participating Group.	

3.4	“ Base Pay ” for any particular year, means (a) for all Participants other than Covered Officers, the base pay actually received for the calendar year; and (b) for Covered Officers, the base pay actually received prior to the February Committee meeting and the rate of base pay in effect immediately after the February Committee meeting in the given calendar year, such that salary increases for a Covered Officer after the February Committee meeting are not considered for such year. Notwithstanding the foregoing, for a Covered Officer whose employment terminates prior to December 31 of a calendar year, Base Pay is reduced to a pro-rata amount based on the period of time actually employed during the year.	

3.5	“ Target Bonus Award ” for the year means the “Target Bonus Percentage” multiplied by a Participant’s Base Pay.	

3.6	“ Target Bonus Percentage ” for a Participant who is Covered Officer is the percentage assigned to the Covered Officer for a particular year by the Committee no later than the February Committee meeting for that year. “ Target Bonus Percentage ” for a Participant other than a Covered Officer is the percentage assigned to the Participant for a particular year by the Administrator no later than the February Committee meeting for that year. In any case, the Target Bonus Percentage for any Participant may not be greater than 150% of salary and the maximum potential annual award for any Participant may not exceed $3 million.	

3.7	“ Actual Bonus Award ” for the year in question means the bonus earned by a Participant and is computed as the Actual Bonus Percentage multiplied by a Participant’s Base Pay for the year in question.	

3.8	“ Actual Bonus Percentage ” is determined by multiplying the Target Bonus Percentage by the Bonus Performance Value.	

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3.9	“ Bonus Performance Value ” is an amount determined as follows:	

(a)	Base Formula . “Bonus Performance Value” means the Actual EVA minus the Target EVA, divided by the Leverage Factor, plus 1.0 [((Actual EVA – Target EVA)/Leverage Factor) + 1.0]; subject, however, to the following subparagraph (b).	

(b)	Floor/Ceiling . If the calculation of the Bonus Performance Value is less than zero (0), the Bonus Performance Value shall be deemed to be zero (0) , and if the calculation of the Bonus Performance Value exceeds 2.0, the Bonus Performance Value shall be deemed to be 2.0.	

3.10	“ Leverage Factor ” is the negative (positive) deviation from Target EVA necessary before a zero (two times Target) bonus is earned. The Leverage Factors are determined by the Committee and will be evaluated and recalibrated, as appropriate, no less than every three years. The Leverage Factor may be different for each Participating Group.	

3.11	“ Adjustment Guidelines ” are guidelines the Compensation Committee of the Board of Directors (Committee) will consider in determining the potential treatment of any material, non-recurring or unusual items (see Exhibit B).	

3.12	A Participant’s classification is determined by the Board of Direcotors upon recommendation by the Committee for officers of The Manitowoc Company, Inc., and by the Senior VP of HR & Administration for all new participants below the level of corporate officer.	
ARTICLE IV
Payment of Actual Bonus Awards

4.1	Beginning with the fiscal 2008 Plan year, Actual Bonus Awards earned will be fully paid out after the end of the year at such time as the Committee but not later than March 15 of the calendar year following the performance period, unless (a) deferred pursuant to Section 4.2 or (b) otherwise permitted pursuant to the exemption provisions of Section 409A of the Internal Revenue Code.	

4.2	Notwithstanding the provisions of Section 4.1, the Committee may permit or require a Participant to defer receipt of the payment of an Actual Bonus Award to the extent provided under any deferred compensation plan of the Company. Notwithstanding the foregoing, any deferral made in accordance with this Section 4.2 shall satisfy the rquirements of Section 409A of the Internal Revenue Code.	

4.3	Beginning with the fiscal 2013 Plan year, the Committee may, in its sole discretion, reduce (but not increase) the incentive award otherwise earned by any Participant under the Plan in any one year based on individual or other additional performance factors determined by the Committee. Such performance factors may, without limitation, consist of factors that are not pre-established or objective within the meaning of the regulations promulgated under Section 162(m) of the Internal Revenue Code.	

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ARTICLE V

Plan Participation, Transfers and Terminations

5.1	Participants . Except as otherwise provided (primarily in Section 8.1) the Administrator will determine who shall participate in the Plan (“Participant(s)”). Employees designated for Plan participation shall be salaried employees of The Manitowoc Company, Inc. or its affiliates (the “Company”). In order for a Participant to receive or be credited with their Actual Bonus Award for a Plan year, the Participant must have (i) remained employed by the Company through the last day of such Plan year, (ii) terminated employment with the Company for any reason during the Plan year at or after the earlier of attainment of age sixty, or the first of the month following the date on which the participant’s attained age plus years of service with the Company equal 80, (iii) suffered a “disability” as defined in the Company’s long term disability benefits program during the Plan year, or (iv) died during the Plan year. In all other cases of termination of employment prior to the last day of the Plan year, a Participant shall not be entitled to any Actual Bonus Award for such Plan year.	

5.2	No Guarantee . Participation in the Plan provides no guarantee that a payment under the Plan will be made. Selection as a Participant is no guarantee that payments under the Plan will be made or that selection as a Participant will be made in any subsequent calendar year.	
ARTICLE VI

General Provisions

6.1	Withholding of Taxes . The Company shall have the right to withhold the amount of taxes, which in the determination of the Company, are required to be withheld under law with respect to any amount due or paid under the Plan.	

6.2	Expenses . All expenses and costs in connection with the adoption and administration of the Plan shall be borne by the Company.	

6.3	No Prior Right or Offer . Except and until expressly granted pursuant to the Plan, nothing in the Plan shall be deemed to give any employee any contractual or other right to participate in the benefits of the Plan.	

6.4	Claims for Benefits . In the event a Participant (a “claimant”) desires to make a claim with respect to any of the benefits provided hereunder, the claimant shall submit evidence satisfactory to the Committee of facts establishing their entitlement to a payment under the Plan. Any claim with respect to any of the benefits provided under the Plan shall be made in writing within ninety (90) days of the event which the claimant asserts entitles the claimant to benefits. Failure by the claimant to submit a claim within such ninety (90) day period shall bar the claimant from any claim for benefits under the Plan.	

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6.5	Denial and Appeal of Claims . In the event that a claim which is made by a claimant is wholly or partially denied, the claimant will receive from the Committee a written explanation of the reason for denial and the claimant or the claimant’s duly authorized representative may appeal the denial of the claim to the Committee at any time within ninety (90) days after the receipt by the claimant of written notice from the Committee of the denial of the claim. In connection therewith, the claimant or the claimant’s duly authorized representative may request a review of the denied claim; may review pertinent documents; and may submit issues and comments in writing. Upon receipt of an appeal, the Committee shall make a decision with respect to the appeal and, not later than sixty (60) days after receipt of a request for review, shall furnish the claimant with a decision on review in writing, including the specific reasons for the decision written in a manner calculated to be understood by the claimant, as well as specific reference to the pertinent provisions of the Plan upon which the decision is based. In reaching its decision, the Committee shall have complete discretionary authority to determine all questions arising in the interpretation and administration of the Plan, and to construe the terms of the Plan, including any doubtful or disputed terms and the eligibility of a Participant for benefits.	

6.6	Action Taken in Good Faith; Indemnification . The Committee may employ attorneys, consultants, accountants or other persons and the Company’s directors and officers shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding upon all employees who have received awards, the Company and all other interested parties. No member of the Committee, nor any officer, director, employee or representative of the Company, or any of its affiliates acting on behalf of or in conjunction with the Committee, shall be personally liable for any action, determination, or interpretation, whether of commission or omission, taken or made with respect to the Plan, except in circumstances involving actual bad faith or willful misconduct. In addition to such other rights of indemnification as they may have as members of the Board, as members of the Committee or as officers or employees of the Company, all members of the Committee and any officer, employee or representative of the Company or any of its subsidiaries acting on their behalf shall be fully indemnified and protected by the Company with respect to any such action, determination or interpretation against the reasonable expenses, including attorneys’ fees actually and necessarily incurred, in connection with the defense of any civil or criminal action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or an award granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by Company ) or paid by them in satisfaction of a judgment in any action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person claiming indemnification shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same. Expenses (including attorneys’ fees) incurred in defending a civil or criminal action, suit or proceeding shall be paid by the Company in advance of the final disposition of such action, suit or proceeding if such person claiming indemnification is entitled to be indemnified as provided in this Section.	

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6.7	Rights Personal to Participant . Any rights provided to a Participant under the Plan shall be personal to such Participant, shall not be transferable (except by will or pursuant to the laws of descent or distribution), and shall be exercisable, during the Participant’s lifetime, only by such Participant.	

6.8	Non-Allocation of Award . In the event of a suspension of the Plan in any Plan year for a period of more than 90 days, the current Bonus for the subject Plan year shall be deemed forfeited and no portion thereof shall be allocated to Participants. Any such forfeiture shall not affect the calculation of EVA in any subsequent year.	
ARTICLE VII

 Limitations

7.1	No Continued Employment . Nothing contained herein shall provide any Participant or employee with any right to continued employment or in any way abridge the rights of the Company to determine the terms and conditions of employment and whether to terminate employment of any employee.	

7.2	No Vested Rights . Except as otherwise provided herein, no Participant or employee or other person shall have any claim of right (legal, equitable, or otherwise) to any award, allocation, or distribution and no officer or employee of the Company or any other person shall have any authority to make representations or agreements to the contrary. No interest conferred herein to a Participant shall be assignable or subject to claim by a Participant’s creditors. The right of the Participant to receive a distribution hereunder shall be an unsecured claim against the general assets of the Company and the Participant shall have no rights in or against any specific assets of the Company as the result of participation hereunder.	

7.3	Not Part of Other Benefits . The benefits provided in this Plan shall not be deemed a part of any other benefit provided by the Company to its employees. The Company assumes no obligation to Plan Participants except as specified herein. This is a complete statement, along with the Schedules and Appendices attached hereto, of the terms and conditions of the Plan.	

7.4	Other Plans . Nothing contained herein shall limit the Company or the Committee’s power to grant bonuses to employees of the Company, whether or not Participants in this Plan.	

7.5	Limitations . Neither the establishment of the Plan or the grant of an award hereunder shall be deemed to constitute an express or implied contract of employment for any period of time or in any way abridge the rights of the Company to determine the terms and conditions of employment or to terminate the employment of any employee with or without cause at any time.	

7.6	Unfunded Plan . This Plan is unfunded and is maintained by the Company in part to provide incentive compensation to a select group of employees and highly compensated employees.	

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Nothing herein shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant.
ARTICLE VIII
    
 Authority

8.1	Plan Administration . “Committee” means the Compensation Committee of the Board of Directors of the Company, or if there is none, The Board of Directors. “Administrator” means the Company’s Senior Vice President-Human Resources & Administration or, if that position is vacant, the Committee. Except as otherwise expressly provided herein, full power and authority to interpret and administer this Plan shall be vested in the Committee. The Committee may authorize the Administrator to determine who shall participate in the Plan, except for the participation of officers. Participation of officers shall require Committee approval. The Committee may from time to time make such decisions and adopt such rules and regulations for implementing the Plan as it deems appropriate for any Participant under the Plan. Any decision taken by the Committee arising out of or in connection with the construction, administration, interpretation and effect of the Plan shall be final, conclusive and binding upon all Participants and any person claiming under or through them.	

8.2	Board of Directors Authority . The Board shall be ultimately responsible for administration of the Plan. References made herein to the “Committee” assume that the Board of Directors has created a Compensation Committee to administer the Plan. In the event a Compensation Committee is not so designated, the Board shall administer the Plan. The Board or its Compensation Committee, as appropriate, shall work with the Company’s CEO and SVP-HR & Administration in all aspects of the administration of the Plan.	

8.3	162(m) Limitations . After the February Committee meeting for any applicable year, the calculation methodology for the maximum possible benefit entitlement shall be fixed for all Covered Officers.   On or before such February meeting, the Committee may make appropriate determinations for such purpose, but if no such determinations are made, such maximum possible benefit entitlement shall be calculated based on the provisions then in effect, without later application of discretion, with the exceptions that the discretion inherent in Exhibit B shall be assumed to have been exercised for each of the guidelines (with the result that the items listed in Exhibit B will be excluded from the EVA calculation) and that the discretion contemplated by Section 4.3 may be exercised at any time prior to payment . Notwithstanding the foregoing, for purposes of determining the benefits of Participants who are not Covered Officers and in situations in which the effect is to reduce the actual benefits to a Covered Officer, the Committee shall retain the discretion inherent in 2.4, 3.3, 3.5, 3.10, 3.11, Exhibit B and elsewhere to alter the calculation methodology later than the February Committee meeting, up to and including the time of the final determination of the benefit entitlements.	

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ARTICLE IX
    
 Notice

9.1	Any notice to be given pursuant to the provisions of the Plan shall be in writing and directed to the appropriate recipient thereof at their business address or office location.	
ARTICLE X
    
 Effective Date

10.1	This Plan shall be effective as of January 1, 2005 and it shall remain in effect, subject to amendment from time to time, until terminated or suspended by the Committee.	
ARTICLE XI
    
 Amendments

11.1	This Plan may be amended, suspended or terminated at any time at the sole discretion of the Board upon the recommendation of the Committee. Notice of any such amendment, suspension or termination shall be given promptly to each Participant.	
ARTICLE XII
    
 Applicable Law

12.1	This Plan shall be construed in accordance with the provisions of the laws of the State of Wisconsin.	

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Exhibit A 
 
Calculation of the Cost of Capital
“Cost of Capital” or “C*” means the weighted average of the after tax cost of debt and equity for the year in question. It is calculated as follows:

	
Inputs Variables :	
Risk Free Rate = Average Daily closing yield on U.S. Government 30 Yr. Bonds (for the month of December preceding the Plan year).	
Market Risk Premium = 5.0% (Fixed)	
Beta = One (Fixed)	
Debt/Capital Ratio = 40% (Fixed)	
b = Cost of Debt Capital (Projected & Weighted Average Yield on the Company’s Long Term Debt Obligations).	
Marginal Tax Rate = the Tax Rate as defined in Section 2.4(e)	

	
		
Calculations :	
y	= Cost of Equity Capital
= Risk Free Rate + (Beta x Market Risk Premium)	
Weighted Average Cost of Capital = [Cost of Equity Capital x (1 - Debt/Capital Ratio)] + [Cost of Debt x (Debt/Capital Ratio) x (1 - Marginal Tax Rate)]	
C* = [y x (1 - Debt/Capital)] + [b x (Debt/Capital) x (1 - Marginal Tax Rate)]	

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Exhibit B
Adjustment Guidelines for Material and Unexpected Non-Recurring Items

•	Potential material and unexpected “non-recurring items” which the Committee may consider excluding from the “raw” EVA calculation (i.e., impact net operating profit after-tax or the cost of capital), in order to ensure employees are assessed on the performance of continuing operations, include:	

•	Change in Accounting Principle or Practices (e.g., treatment of goodwill, FAS 123-revised 2004, etc.). Typically, the company may exclude the impact from both operating results and performance goals .	

•	Major acquisition (i.e., acquiring a business with total assets greater than 15% of the company’s/operating unit’s prior year-end total assets). In the event of a major acquisition, the company may exclude the performance of the acquired unit from both results and goals for an agreed upon period of time.	

•	Major disposition (e.g., disposition as defined by FAS 144). In the event a disposition is classified as discontinued under FAS 144, the company may exclude the performance of the disposed unit from both results and goals.	

•	Restructuring (i.e., reorganization of a specific business or operating unit). In the event of a restructuring, the company may exclude the cost of restructuring from NOPAT but must also exclude any benefits up to the amount of restructuring costs during the subsequent 12-month period. The restructuring liability should also be excluded from the calculation of capital for the same subsequent 12-month period.	

•	Recapitalization (i.e., significant altering of the company’s current capital structure). In the event of a recapitalization, the company may exclude the impact from both results and goals.	

•	Other unusual or one-time gains/losses considered on a case-by-case basis relative to their impact on the company’s/operating unit’s financial results.	

•	Expenses related to significant ERP system implementations may be capitalized and amortized over the same period as the ERP asset.	

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Exhibit 10.3(a)
CONTINGENT EMPLOYMENT AGREEMENT
THIS AGREEMENT, made this ____ day of __________, ____, by and between THE MANITOWOC COMPANY, INC., a Wisconsin corporation (together with its subsidiaries and any upstream parent company that in the future may control The Manitowoc Company, Inc. referred to herein as the “Company”) and ___________________, a key employee of the Company (the “Employee”).
RECITALS
WHEREAS, sudden takeovers, acquisitions or changes of control of domestic corporations have occurred frequently in recent years, and current conditions may contribute to the continuation or acceleration of this trend; and
WHEREAS, the possibility of a sudden takeover, acquisition or change of control can create uncertainty of employment and may distract and/or cause the loss of valuable Company officers, to the detriment of the Company and its shareholders; and
WHEREAS, it is believed that the detriment described can be substantially reduced by agreement on the terms hereinafter set forth.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter set forth, IT IS AGREED
1. Continued Employment .
(a)      If a “Change of Control” (as defined below) of the Company occurs when the Employee is employed by the Company, the Company will continue thereafter to employ the Employee, and the Employee will remain in the employ of the Company, in accordance with the terms and provisions of this Agreement, for a period of three (3) years following the date of such change (the “Employment Period”).
(b)      As used herein, the phrase “Change of Control” of the Company means the first to occur of the following with respect to the Company or any upstream holding company:
(i)      Any “person,” as that term is defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), but excluding the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “beneficial owner” (as that term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of

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securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities;
(ii)      The Company is merged or consolidated with any other corporation or other entity, other than: (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (B) the Company engages in a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as defined above) acquires more than 30% of the combined voting power of the Company’s then outstanding securities. Notwithstanding the foregoing, a merger or consolidation involving the Company shall not be considered a “Change of Control” if the Company is the surviving corporation and shares of the Company’s Common Stock are not converted into or exchanged for stock or securities of any other corporation, cash or any other thing of value, unless persons who beneficially owned shares of the Company’s Common Stock outstanding immediately prior to such transaction own beneficially less than a majority of the outstanding voting securities of the Company immediately following the merger or consolidation;
(iii)      The Company or any subsidiary sells, assigns or otherwise transfers assets in a transaction or series of related transactions, if the aggregate market value of the assets so transferred exceeds 50% of the Company’s consolidated book value, determined by the Company in accordance with generally accepted accounting principles, measured at the time at which such transaction occurs or the first of such series of related transactions occurs; provided, however, that such a transfer effected pursuant to a spin-off or split-up where stockholders of the Company retain ownership of the transferred assets proportionate to their prorata ownership interest in the Company shall not be deemed a “Change of Control;”
(iv)      The Company dissolves and liquidates substantially all of its assets;
(v)      At any time after the date of this Agreement when the Continuing Directors cease to constitute a majority of the Board of Directors of the Company. For this purpose, a “Continuing Director” shall mean: (A) the individuals who, at the date of this Agreement constitute the Board; and (B) any new directors (other than directors designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i), (ii) or (iii) of this paragraph 1(b) of this Agreement) whose appointment to the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the then-serving Continuing Directors; or

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(vi)      A determination by the Board of Directors of the Company, in view of then current circumstances or impending events, that a Change of Control of the Company has occurred, which determination shall be made for the specific purpose of triggering the operative provisions of this Agreement and all other similar contingent employment agreements of the Company.
2.      Duties . Unless otherwise agreed by the Company and Employee, during the Employment Period the Employee shall be employed by the Company in the same position/ offices as those which the Employee held on the date of the Change of Control of the Company. In such employment the Employee’s duties and authority shall consist of and include all duties and authority customarily performed and held by a person holding an equivalent position with a corporation of similar nature and size, as such duties and authority related to such position are reasonably defined and delegated from time to time by the Board of Directors of the Company. However, no change of the Employee’s location of employment outside a 50-mile radius from his place of employment as of the date of this Agreement (or any other location later consented to by the Employee), or in the Employee’s title, shall be made without the prior written consent of the Employee. The Employee shall have the powers necessary to perform the duties assigned and shall be provided such supporting services, staff, secretarial and other assistance, office space and accouterments as shall be reasonably necessary and appropriate in light of the duties assigned (but in no event, in any case, smaller in quantity or size or inferior in quality than that being furnished to the Employee on the date of the Change of Control of the Company.
The Employee shall devote his entire business time, energy and skills to such employment while so employed, but the Employee shall not be required to devote more than an average of approximately 40 hours per calendar week to such employment. The Employee may participate in civic or charitable activities which do not adversely affect his ability to carry out his responsibilities hereunder. The Employee shall be entitled to a minimum of three weeks (fifteen working days) of paid vacation annually, or such greater amount as shall be customarily allowed to the Employee during the fiscal year of the Company prior to the fiscal year in which the Change of Control of the Company shall occur. The Employee shall have the sole discretion to determine the time and intervals of such vacation.
3.      Compensation . While employed under this Agreement, the Employee shall be compensated as follows:
(a)      The Employee shall receive a salary equal to his salary as in effect as of the date of the Change of Control of the Company, subject to adjustment as hereinafter provided.
(b)      The Employee shall be reimbursed for any and all monies advanced in connection with his employment for reasonable and necessary expenses incurred by him on behalf of the Company.

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(c)      The Employee shall be included to the extent eligible thereunder in any and all plans providing benefits for the Company’s employees, including but not limited to group life insurance, hospitalization, medical, retiree health and pension, and shall be provided any and all other benefits and perquisites made available to other employees of comparable status, at the expense of the Company on a comparable basis. The Employee shall be deemed eligible for retiree health if he is a participant in the Company's retiree health plan and qualifies on the basis of years of service (regardless of his age).
(d)      The Employee shall be permitted to participate in any restricted stock plans, stock option plans or other stock benefit plans as the Company establishes and maintains from time to time for its officers and employees. The Employee’s participation level in such stock plans shall be consistent with the participation level of other officers and employees of the Company who have positions, duties and responsibilities comparable to the Employee.
(e)      The Employee shall be included in all profit sharing, bonus, deferred compensation, split dollar life insurance, and similar or comparable cash incentive bonus plans customarily extended by the Company to corporate officers and key employees of the Company. The Employee shall be entitled to participate in cash incentive bonuses and profit sharing under such plans which are consistent with the bonuses and profit sharing received under such plans by other employees and officers of the Company who have positions, duties and responsibilities comparable to those of the Employee provided that such plans and bonus opportunity shall be no less favorable to the Employee than the plans and bonus opportunity that existed immediately prior to the Change of Control.
4.      Annual Compensation Adjustments . At least annually during the Employment Period, the Board of Directors of the Company or an appropriate committee thereof, in accordance with past practice, will consider and appraise the contributions of the Employee to the Company's operating efficiency, growth, production and profits, and the Employee's compensation rate shall be eligible for increase based upon Employee’s contributions to the Company and the increases provided to other corporate officers and key employees generally and as the scope and success of the Company's operations or the Employee's duties expand.
5.      Disability . If, during the Employment Period, the Employee shall become disabled by sickness or otherwise so that he is unable to perform the regular duties of his employment on a full-time basis, the Company shall pay him commencing on the date of the disability and continuing for the first six months thereafter, as sick pay, his normal salary and all benefits as described in paragraph 3 hereof. If the disability continues beyond six months, then the payment of the Employee’s normal salary shall be suspended during the period of disability. During the term of his disability, and until the expiration of the Employment Period, the Employee shall continue to receive customary fringe benefits as provided in paragraphs 3(c) and 3(d) above. The obligation to provide the foregoing disability benefits shall survive the termination of this Agreement provided the disability was incurred before termination. If the disability terminates prior to the end of the

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Employment Period, the Employee may elect to return to full-time employment under this Agreement in which case this paragraph shall apply to all subsequent short or long term disabilities.
To determine whether the Employee is disabled for the purposes of this paragraph, either party may from time to time request a medical examination of the Employee by a doctor appointed by the Company, or as the parties may otherwise agree, and the written medical opinion of such doctor shall be conclusive and binding upon the parties as to whether or not the Employee has become disabled and the date when such disability arose. The cost of any such medical examination shall be borne by the Company.
6.      Retirement . If, during the Employment Period, the Employee shall deliver to the Company a statement signed by him stating that the Employee voluntarily chooses to retire early from the Company, or if the Employee shall with the mutual agreement of the Company agree in writing on early retirement, then this Agreement shall terminate on the effective date of such event and the terms of the Company’s retirement policies or such mutual agreement shall immediately become effective.
7.      Termination Other Than for Cause .
(a)      If during the Employment Period the Employee shall elect to terminate his employment under this Agreement for Good Reason, he shall thereupon be entitled to the benefits and a severance payment as set forth in paragraph 7(b) below. For purposes of this Agreement, a termination for “Good Reason” means a termination by Employee based upon the occurrence (without Employee’s express written consent) of any of the following: (i) a material diminution in Employee’s position or title, or the assignment of duties to Employee that are materially inconsistent with Employee’s position or title as described in paragraph 2; (ii) a material diminution in Employee’s base salary or incentive/bonus opportunities; (iii) a change of more than fifty (50) miles from the location of his principal place of employment on the date of the Change of Control of the Company; or (iv) a material breach by the Company of any of its obligations under this Agreement, or (v) any successor to the principal business of the Company (whether by merger, purchase of assets, liquidation or otherwise) as described in paragraph 13 fails or refuses to assume the Company's obligations under this Agreement. Notwithstanding the foregoing, no such event described above shall constitute Good Reason unless Employee gives written notice to the Company specifying the condition or event relied upon for such termination within ninety (90) days of the initial existence of such event and (2) the Company fails to cure the condition or event constituting Good Reason within thirty (30) days following receipt of Employee’s notice.
(b)      If during the Employment Period the Employee's employment hereunder shall be terminated (1) by the Company for any reason other than the reasons set forth in paragraphs 5, 6, 8 or 9 of this Agreement, or (2) by the Employee pursuant to paragraph 7(a) above, thereafter the Employee shall be entitled to participate in group life, hospitalization and medical insurance described in paragraph 3(c) hereof, for the remainder

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of the Employment Period (provided that if the Employee would be eligible to participate in the Company’s retiree health plan (based on years of service without regard to age) if he had retired as of the termination date, he shall be entitled to participate in such retiree health plan upon such termination), and, no later than thirty (30) calendar days following such termination, the Company shall pay to the Employee or his personal representative a severance payment in an amount equal to the sum of the following:
(i)      The Employee's annual base salary through the date of the termination of employment to the extent not theretofore paid; plus
(ii)      All deferred salary (including “bank” balances in the Company’s incentive compensation plans), profit sharing, bonuses and other compensation earned by the Employee (whether vested or unvested or subject to any other contingencies) during the course of his employment with the Company prior to the termination of his employment; plus
(iii)      The Employee's base salary for the portion of the Employment Period remaining unexpired as of the termination date. For this purpose, the Employee's base salary shall be his base salary as in effect immediately prior to the termination of employment. For any fraction of a year included in the unexpired portion of the Employment Period, the Employee's base salary shall be prorated based upon a 365-day year; plus
(iv)      Incentive bonus compensation for the current fiscal year of the Company during which the termination of employment occurs and for all subsequent fiscal years of the Company thereafter which are included in whole or in part in the portion of the Employment Period remaining unexpired as of the termination date. The amount of the cash incentive bonus for any partial fiscal year included in the balance of the Employment Period shall be prorated based on a 365-day fiscal year. The amount of the annual bonus to be applied in calculating the incentive compensation payment shall be the average of the annual cash incentive bonuses earned by the Employee (whether such incentive bonuses were paid in the year earned or deferred for payment in subsequent years) under all short and long-term cash incentive bonus plans maintained by the Company in which the Employee participated during the Company's latest three consecutive fiscal years ended prior to the termination of the Employee's employment. If the Employee has been employed by the Company for less than three complete fiscal years prior to the date of the termination of his employment, then the amount of the annual bonus for purposes of computing these payments shall be based upon the average of the bonuses earned by the Employee during such smaller number of complete fiscal years during which he was employed by the Company prior to the date of the termination of his employment. If the Employee has not been employed for even one complete fiscal year prior to the date of the termination of his employment, then his annual bonus for purposes of computing this payment shall be calculated by prorating the bonus earned by the Employee for the portion of the Company's most

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recently completed fiscal year during which the Employee was employed, as though the Employee had been employed for such full fiscal year. Such proration shall be calculated based upon a 365-day fiscal year.
(c)      If during the six month period prior to a Change of Control, the Employee’s employment with the Company is terminated and if it is reasonably demonstrated by the Employee that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control, then for all purposes of this Agreement the Employee shall, effective as of the date of termination, (and subject to paragraph 7(e) below) be entitled to participate in group life, hospitalization and medical insurance described in paragraph 3(c) hereof, for a period of three years following the date of termination (provided that if the Employee would be eligible to participate in the Company’s retiree health plan (based on years of service without regard to age) if he had retired as of the termination date, he shall be entitled to participate in such retiree health plan upon such termination), and, no later than thirty (30) calendar days following such Change of Control, the Company shall pay to the Employee or his personal representative a severance payment in an amount equal to the sum of the following:
(i)      The Employee's annual base salary through the date of the termination of employment to the extent not theretofore paid; plus
(ii)      All deferred salary (including “bank” balances in the Company’s incentive compensation plans), profit sharing, bonuses and other compensation earned by the Employee (whether vested or unvested or subject to any other contingencies) during the course of his employment with the Company prior to the termination of his employment; plus
(iii)      An amount equal to three (3) times the Employee's annual base salary. For this purpose, the Employee's annual base salary shall be his annual base salary as in effect immediately prior to the termination of employment; plus
(iv)      An amount equal to three (3) times the Employee’s annual incentive bonus compensation. The amount of the annual incentive bonus to be applied in calculating the incentive compensation payment shall be the average of the annual cash incentive bonuses earned by the Employee (whether such incentive bonuses were paid in the year earned or deferred for payment in subsequent years) under all short and long-term cash incentive bonus plans maintained by the Company in which the Employee participated during the Company's latest three consecutive fiscal years ended prior to the termination of the Employee's employment. If the Employee has been employed by the Company for less than three complete fiscal years prior to the date of the termination of his employment, then the amount of the annual bonus for purposes of computing these payments shall be based upon the average of the bonuses earned by the Employee during such smaller number of complete fiscal years during which he was employed by the Company prior to the date of the termination of his employment. If the Employee

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has not been employed for even one complete fiscal year prior to the date of the termination of his employment, then his annual bonus for purposes of computing this payment shall be calculated by prorating the bonus earned by the Employee for the portion of the Company's most recently completed fiscal year during which the Employee was employed, as though the Employee had been employed for such full fiscal year. Such proration shall be calculated based upon a 365-day fiscal year.
(d)      If it shall be impossible or impracticable for the Employee to participate directly in certain programs or plans specified in subparagraph (b) or (c) above, then the Company shall provide, at the Company’s expense, for the provision to the Employee of benefits as nearly as possible identical to, and in no event less beneficial to the Employee than, those which would be provided to the Employee through direct participation or providing a cash payment(s) economically equivalent in value to such benefits.
(e)      If it is determined that any payment or distribution by the Company to or for the benefit of the Employee (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a "Payment") would constitute an excess “parachute payment” within the meaning of Section 280G of the Code and would result in the imposition on the Employee of an excise tax under Section 4999 of the Code (the “Excise Tax”), then the Employee shall be entitled to receive the Payments unless the after-tax amount that would be retained by the Employee (after taking into account any and all applicable federal, state and local excise, income or other taxes payable by the Employee, including the Excise Tax) is less than the after-tax amount that would be retained by the Employee (after taking into account any and all applicable federal, state and local excise, income or other taxes payable by the Employee, including the Excise Tax) if the Employee were instead to be paid or provided, as the case may be, the maximum amount of the Payments that the Employee could receive without being subject to the Excise Tax (the “Reduced Payments”), in which case the Employee shall be entitled only to the Reduced Payments. The reduction of the amounts payable hereunder, if applicable, shall be made by first reducing the payments under paragraph 7(b)(iii), unless an alternative method of reduction is elected by the Employee, and in any event shall be made in such a manner as to maximize the value of all Payments actually made to the Employee. For purposes of reducing the Payments, only amounts payable under this Agreement (and no other Payments) shall be reduced.
(f)      All determinations required to be made under this paragraph 7, and the assumptions to be utilized in arriving at such determination, shall be made by such certified public accounting firm as may be designated by the Employee (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and the Employee. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Company and the Employee.
(g)      In the event that any Payment to Employee pursuant to this Agreement or otherwise would be subject to the excise tax imposed by Section 4999 of the Internal

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Revenue Code of 1986, as amended (or any comparable successor provision), the Company shall be entitled to withhold any such excise tax as required by applicable law, together with any other amounts required to be withheld under any applicable federal or state law.
8.      Termination for Cause . Employee agrees that this Agreement may be terminated by the Company at any time for cause, which shall mean only conviction based upon the commission of a felony or becoming the subject of a final nonappealable judgment of a court of competent jurisdiction holding that the Employee is liable to the Company for damages for obtaining a personal benefit in a transaction adverse to the interests of the Company. The Employee shall not be deemed to have been terminated for cause unless and until there shall have been delivered to the Employee a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board called and held for such purpose (after reasonable notice to the Employee and an opportunity for the Employee, together with his counsel, to be heard before the Board), finding that the Employee was guilty of conduct constituting cause for termination as set forth in this paragraph 8 and specifying the particulars thereof in detail. In the event this agreement is terminated for cause, the Employee shall forfeit his right to any and all benefits he would otherwise have been entitled thereafter to receive under the Agreement, but shall not forfeit his right to benefits accrued up to and including the date of termination.
9.      Death of Employee . Upon the death of the Employee during the Employment Period, the payment of base compensation as provided in subparagraph 3(a) shall continue through the last day of the month in which death occurs, and bonuses for the year in which death occurs shall be prorated on the basis of the number of months elapsed during the fiscal year as of such day. The other rights and benefits of the Employee (or his personal representative) shall be as determined under the applicable programs and plans of the Company covering the Employee at death.
10.      Stock Options and Restricted Shares . Upon the occurrence of a Change of Control of the Company, all stock options shall be fully vested and exercisable and all restrictions upon unconditional receipt by Employee of shares of stock or other securities of the Company granted under any restricted stock or other compensation plan shall immediately be removed, and such shares shall vest in and be distributed immediately to Employee. The Company covenants and agrees to take such steps (including amendment of any existing plan) to insure that all such plans shall allow or provide for such vesting and distribution.

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11.      Noncompetition .
(a)      Scope of Noncompetition . In the event that the employment of the Employee is terminated pursuant to paragraph 7 prior to the expiration of the Employment Period such that the Employee receives the payments and benefits referred to in paragraph 7(b) or (c), the Employee agrees that he will not, for the Noncompetition Period (as hereinafter defined):
(i)      Render services, directly or indirectly, to any “Competitor” (other than the acquisition of an equity interest in a corporation or other entity registered under the Securities Exchange Act of 1934, as amended, not requiring the filing of a Schedule 13D or Schedule 13G or any successor schedules or forms) in connection with the development, manufacture, distribution, sale, merchandising or promotion of any “Competitive Product” or “Competitive Service.” “Competitor” means any corporation, person, firm or organization or division or part thereof engaged in or about to become engaged in research and development work on or the production and/or sale of any Competitive Product or Competitive Service in any country in which the Company or any of its affiliates sold a product or service to a customer within the three-year period ending on the effective date of the termination of Employee's employment with the Company. “Competitive Product” or “Competitive Service” means a product or service, as the case may be, made, offered, sold or provided by a Competitor, which is the same as, functionally equivalent to, or otherwise directly competitive with one made, offered, sold or provided by the business units of the Company over which the Employee had a material supervisory or management role.
(ii)      Engage either directly or indirectly, in any country in which the Company or any of its affiliates sold a product or service to a customer within the three-year period ending on the effective date of the termination of Employee's employment with the Company for himself or as an investor in the development, manufacture, purchase or sale of any Competitive Product or Competitive Service.
(b)      Noncompetition Period . For purposes of this paragraph 11, the term “Noncompetition Period” means the period beginning on the effective date of the termination of Employee’s employment with the Company and continuing for (i) the lesser of three years or the unexpired term of the Employment Period in the case of a severance payment made pursuant to paragraph 7(b), or (ii) three years in the case of a severance payment made pursuant to paragraph 7(c).
(c)      Survival . The noncompetition covenant in this paragraph 11 shall survive the termination of the Employee’s employment.
(d)      Notification to the Company . If the Employee notifies the Company of the occupation the Employee proposes to take up after termination of employment with the Company and furnishes the Company such written or oral information as it may reasonably request concerning such proposed occupation, the Company agrees to notify

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the Employee promptly, and in any event, within fourteen (14) business days after receipt of the requested information, whether or not the Company considers such occupation, based on the information so furnished or derived from its independent investigation, to come within the provisions of this Section and, if the Company considers such occupation to come within the provisions of this Section, whether the Company will waive any of the provisions thereof.
(e)      Remedies . In addition to other remedies provided by law or equity, upon a breach by the Employee of any of the covenants contained in this paragraph 11, the Company shall be entitled to have a court of competent jurisdiction enter an injunction against the Employee prohibiting any further breach of the covenants contained herein. The parties further agree that the services to be performed hereunder are of a unique, special, and extraordinary character. Therefore, in the event of any controversy concerning the rights or obligations under this Agreement, such rights or obligations shall be enforceable in a court of competent jurisdiction at law or equity by a decree of specific performance or, if the Company elects, by obtaining damages or such other relief as the Company may elect to pursue. Such remedies, however, shall be cumulative and nonexclusive and shall be in addition to any other remedies which the Company may have.
12.      Enforceability . The parties agree that nothing in this Agreement shall in any way abrogate the right of the Company and the Employee to enforce by injunction or otherwise the due and proper performance and observance of the several covenants herein contained to be performed by the Employee or the Company or to recover damages for breach thereof.
13.      Successors and Assigns . If the Company sells, assigns or transfers all or substantially all of its business, assets or earning power to any person, or if the Company merges into or consolidates or otherwise combines with any person which is the continuing or successor entity, then the Company shall assign all of its right, title and interest in this Agreement as of the date of such event to the person which is either the acquiring or successor corporation, and such person(s) shall assume and perform from and after the date of such assignment all of the terms, conditions and provisions imposed by this Agreement upon the Company. In case of such assignment by the Company and of assumption and agreement by such person(s), all further rights as well as all other obligations of the Company under this Agreement thenceforth shall cease and terminate. All rights of Employee hereunder shall inure to the benefit of the Employee and his heirs and personal representatives. Other than as specifically provided in this paragraph 13, neither the Company nor Employee may assign any rights or obligations hereunder without the express written consent of the other party.
14.      Termination Prior to Change of Control . Except as described herein in the event of a Change of Control, this Agreement is not intended to vest in Employee any right to continued employment by Company. Absent such a Change of Control and unless specifically established otherwise by agreement between the Company and Employee, Employee’s employment status with the Company is one of employment at-will.

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15.      Supplemental Agreement . This Agreement supersedes any previously existing Contingent Employment Agreement of like nature between the Company and the Employee; however, this Agreement supplements, and is not an amendment to or in derogation of, any other agreement between the Company and the Employee relating to employment or the terms and conditions thereof. No person, other than such person as may be designated by the Board of Directors of the Company, shall have any authority on behalf of the Company to agree to modify or change this Agreement. Notwithstanding the foregoing, this Agreement supersedes and replaces any contingent employment agreement entered into between the Employee and the Company prior to the date of this Agreement which addresses terms of employment, compensation and severance benefits that would become available to the Employee in the event of a change of control of the Company, as that term may be defined in such other contingent employment agreement. Accordingly, any such other contingent employment agreements shall be deemed terminated and of no further force or effect.
16.      Section 409A . This Agreement and any payment, distribution or other benefit hereunder shall comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or an exemption or exclusion therefrom, as well as any related regulations or other guidance promulgated by the U.S. Department of the Treasury or the Internal Revenue Service (“Section 409A”), to the extent applicable, and shall in all respects be administered in accordance with Section 409A. To the extent Employee is a "specified employee" under Section 409A, no payment, distribution or other benefit described in this Agreement constituting a distribution of deferred compensation (within the meaning of Treasury Regulation Section 1.409A-1(b)) to be paid during the six-month period following Employee’s “separation from service” (within the meaning of Treasury Regulation Section 1.409A-1(h)) will be made during such six-month period. Instead, any such deferred compensation shall be paid on the first business day following the six-month anniversary of the separation from service. In no event may Employee, directly or indirectly, designate the calendar year of a payment. Any provision that would cause this Agreement or a payment, distribution or other benefit hereunder to fail to satisfy the requirements of Section 409A shall have no force or effect and, to the extent an amendment would be effective for purposes of Section 409A, the parties agree that this Agreement shall be amended to comply with Section 409A. Such amendment shall be retroactive to the extent permitted by Section 409A. For purposes of this Agreement, Employee shall not be deemed to have terminated employment unless and until a separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)) has occurred. Each payment under this Agreement shall be treated as a separate payment for purposes of Section 409A.
17.      Governing Law, Severability . This Agreement is to be governed by and construed under the internal laws of the State of Wisconsin. If any provision of this Agreement shall be held invalid and unenforceable for any reason, such provision shall be deemed deleted and the remainder of the Agreement shall be valid and enforceable without such provision.

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IN WITNESS WHEREOF , the parties have executed this Agreement as of the date first above written.

THE MANITOWOC COMPANY, INC.

By:                             
Name:                         
Title:                         

EMPLOYEE:

Name:                             

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Exhibit 10.3(b)
CONTINGENT EMPLOYMENT AGREEMENT
THIS AGREEMENT, made this _____ day of ___________, _____, by and between THE MANITOWOC COMPANY, INC., a Wisconsin corporation (together with its subsidiaries and any upstream parent company that in the future may control The Manitowoc Company, Inc. referred to herein as the “Company”) and ______________, a key employee of the Company (the “Employee”).
RECITALS
WHEREAS, sudden takeovers, acquisitions or changes of control of domestic corporations have occurred frequently in recent years, and current conditions may contribute to the continuation or acceleration of this trend; and
WHEREAS, the possibility of a sudden takeover, acquisition or change of control can create uncertainty of employment and may distract and/or cause the loss of valuable Company officers, to the detriment of the Company and its shareholders; and
WHEREAS, it is believed that the detriment described can be substantially reduced by agreement on the terms hereinafter set forth.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter set forth, IT IS AGREED
1. Continued Employment .
(a)      If a “Change of Control” (as defined below) of the Company occurs when the Employee is employed by the Company, the Company will continue thereafter to employ the Employee, and the Employee will remain in the employ of the Company, in accordance with the terms and provisions of this Agreement, for a period of two (2) years following the date of such change (the “Employment Period”).
(b)      As used herein, the phrase “Change of Control” of the Company means the first to occur of the following with respect to the Company or any upstream holding company:
(i)      Any “person,” as that term is defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), but excluding the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “beneficial owner” (as that term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities;
(ii)      The Company is merged or consolidated with any other corporation or other entity, other than: (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (B) the Company engages in a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as defined above) acquires more than 30% of the combined voting power of the Company’s then outstanding securities. Notwithstanding the foregoing, a merger or consolidation involving the Company shall not be considered a “Change of Control” if the Company is the surviving corporation and shares of the Company’s Common Stock are not converted into or exchanged for stock or securities of any other corporation, cash or any other thing of value, unless persons who beneficially owned shares of the Company’s Common Stock outstanding immediately prior to such transaction own beneficially less than a majority of the outstanding voting securities of the Company immediately following the merger or consolidation;
(iii)      The Company or any subsidiary sells, assigns or otherwise transfers assets in a transaction or series of related transactions, if the aggregate market value of the assets so transferred exceeds 50% of the Company’s consolidated book value, determined by the Company in accordance with generally accepted accounting principles, measured at the time at which such transaction occurs or the first of such series of related transactions occurs; provided, however, that such a transfer effected pursuant to a spin-off or split-up where stockholders of the Company retain ownership of the transferred assets proportionate to their prorata ownership interest in the Company shall not be deemed a “Change of Control;”
(iv)      The Company dissolves and liquidates substantially all of its assets;
(v)      At any time after the date of this Agreement when the Continuing Directors cease to constitute a majority of the Board of Directors of the Company. For this purpose, a “Continuing Director” shall mean: (A) the individuals who, at the date of this Agreement constitute the Board; and (B) any new directors (other than directors designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i), (ii) or (iii) of this paragraph 1(b) of this Agreement) whose appointment to the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the then-serving Continuing Directors; or
(vi)      A determination by the Board of Directors of the Company, in view of then current circumstances or impending events, that a Change of Control of the Company has occurred, which determination shall be made for the specific purpose of triggering the operative provisions of this Agreement and all other similar contingent employment agreements of the Company.
2.      Duties . Unless otherwise agreed by the Company and Employee, during the Employment Period the Employee shall be employed by the Company in the same position/ offices as those which the Employee held on the date of the Change of Control of the Company. In such employment the Employee’s duties and authority shall consist of and include all duties and authority customarily performed and held by a person holding an equivalent position with a corporation of similar nature and size, as such duties and authority related to such position are reasonably defined and delegated from time to time by the Board of Directors of the Company. However, no change of the Employee’s location of employment outside a 50-mile radius from his place of employment as of the date of this Agreement (or any other location later consented to by the Employee), or in the Employee’s title, shall be made without the prior written consent of the Employee. The Employee shall have the powers necessary to perform the duties assigned and shall be provided such supporting services, staff, secretarial and other assistance, office space and accouterments as shall be reasonably necessary and appropriate in light of the duties assigned (but in no event, in any case, smaller in quantity or size or inferior in quality than that being furnished to the Employee on the date of the Change of Control of the Company.
The Employee shall devote his entire business time, energy and skills to such employment while so employed, but the Employee shall not be required to devote more than an average of approximately 40 hours per calendar week to such employment. The Employee may participate in civic or charitable activities which do not adversely affect his ability to carry out his responsibilities hereunder. The Employee shall be entitled to a minimum of three weeks (fifteen working days) of paid vacation annually, or such greater amount as shall be customarily allowed to the Employee during the fiscal year of the Company prior to the fiscal year in which the Change of Control of the Company shall occur. The Employee shall have the sole discretion to determine the time and intervals of such vacation.
3.      Compensation . While employed under this Agreement, the Employee shall be compensated as follows:
(a)      The Employee shall receive a salary equal to his salary as in effect as of the date of the Change of Control of the Company, subject to adjustment as hereinafter provided.
(b)      The Employee shall be reimbursed for any and all monies advanced in connection with his employment for reasonable and necessary expenses incurred by him on behalf of the Company.
(c)      The Employee shall be included to the extent eligible thereunder in any and all plans providing benefits for the Company’s employees, including but not limited to group life insurance, hospitalization, medical, retiree health and pension, and shall be provided any and all other benefits and perquisites made available to other employees of comparable status, at the expense of the Company on a comparable basis. The Employee shall be deemed eligible for retiree health if he is a participant in the Company's retiree health plan and qualifies on the basis of years of service (regardless of his age).
(d)      The Employee shall be permitted to participate in any restricted stock plans, stock option plans or other stock benefit plans as the Company establishes and maintains from time to time for its officers and employees. The Employee’s participation level in such stock plans shall be consistent with the participation level of other officers and employees of the Company who have positions, duties and responsibilities comparable to the Employee.
(e)      The Employee shall be included in all profit sharing, bonus, deferred compensation, split dollar life insurance, and similar or comparable cash incentive bonus plans customarily extended by the Company to corporate officers and key employees of the Company. The Employee shall be entitled to participate in cash incentive bonuses and profit sharing under such plans which are consistent with the bonuses and profit sharing received under such plans by other employees and officers of the Company who have positions, duties and responsibilities comparable to those of the Employee provided that such plans and bonus opportunity shall be no less favorable to the Employee than the plans and bonus opportunity that existed immediately prior to the Change of Control.
4.      Annual Compensation Adjustments . At least annually during the Employment Period, the Board of Directors of the Company or an appropriate committee thereof, in accordance with past practice, will consider and appraise the contributions of the Employee to the Company's operating efficiency, growth, production and profits, and the Employee's compensation rate shall be eligible for increase based upon Employee’s contributions to the Company and the increases provided to other corporate officers and key employees generally and as the scope and success of the Company's operations or the Employee's duties expand.
5.      Disability . If, during the Employment Period, the Employee shall become disabled by sickness or otherwise so that he is unable to perform the regular duties of his employment on a full-time basis, the Company shall pay him commencing on the date of the disability and continuing for the first six months thereafter, as sick pay, his normal salary and all benefits as described in paragraph 3 hereof. If the disability continues beyond six months, then the payment of the Employee’s normal salary shall be suspended during the period of disability. During the term of his disability, and until the expiration of the Employment Period, the Employee shall continue to receive customary fringe benefits as provided in paragraphs 3(c) and 3(d) above. The obligation to provide the foregoing disability benefits shall survive the termination of this Agreement provided the disability was incurred before termination. If the disability terminates prior to the end of the Employment Period, the Employee may elect to return to full-time employment under this Agreement in which case this paragraph shall apply to all subsequent short or long term disabilities.
To determine whether the Employee is disabled for the purposes of this paragraph, either party may from time to time request a medical examination of the Employee by a doctor appointed by the Company, or as the parties may otherwise agree, and the written medical opinion of such doctor shall be conclusive and binding upon the parties as to whether or not the Employee has become disabled and the date when such disability arose. The cost of any such medical examination shall be borne by the Company.
6.      Retirement . If, during the Employment Period, the Employee shall deliver to the Company a statement signed by him stating that the Employee voluntarily chooses to retire early from the Company, or if the Employee shall with the mutual agreement of the Company agree in writing on early retirement, then this Agreement shall terminate on the effective date of such event and the terms of the Company’s retirement policies or such mutual agreement shall immediately become effective.
7.      Termination Other Than for Cause .
(a)      If during the Employment Period the Employee shall elect to terminate his employment under this Agreement for Good Reason, he shall thereupon be entitled to the benefits and a severance payment as set forth in paragraph 7(b) below. For purposes of this Agreement, a termination for “Good Reason” means a termination by Employee based upon the occurrence (without Employee’s express written consent) of any of the following: (i) a material diminution in Employee’s position or title, or the assignment of duties to Employee that are materially inconsistent with Employee’s position or title as described in paragraph 2; (ii) a material diminution in Employee’s base salary or incentive/bonus opportunities; (iii) a change of more than fifty (50) miles from the location of his principal place of employment on the date of the Change of Control of the Company; or (iv) a material breach by the Company of any of its obligations under this Agreement, or (v) any successor to the principal business of the Company (whether by merger, purchase of assets, liquidation or otherwise) as described in paragraph 13 fails or refuses to assume the Company's obligations under this Agreement. Notwithstanding the foregoing, no such event described above shall constitute Good Reason unless Employee gives written notice to the Company specifying the condition or event relied upon for such termination within ninety (90) days of the initial existence of such event and (2) the Company fails to cure the condition or event constituting Good Reason within thirty (30) days following receipt of Employee’s notice.
(b)      If during the Employment Period the Employee's employment hereunder shall be terminated (1) by the Company for any reason other than the reasons set forth in paragraphs 5, 6, 8 or 9 of this Agreement, or (2) by the Employee pursuant to paragraph 7(a) above, thereafter the Employee shall be entitled to participate in group life, hospitalization and medical insurance described in paragraph 3(c) hereof, for the remainder of the Employment Period (provided that if the Employee would be eligible to participate in the Company’s retiree health plan (based on years of service without regard to age) if he had retired as of the termination date, he shall be entitled to participate in such retiree health plan upon such termination), and, no later than thirty (30) calendar days following such termination, the Company shall pay to the Employee or his personal representative a severance payment in an amount equal to the sum of the following:
(i)      The Employee's annual base salary through the date of the termination of employment to the extent not theretofore paid; plus
(ii)      All deferred salary (including “bank” balances in the Company’s incentive compensation plans), profit sharing, bonuses and other compensation earned by the Employee (whether vested or unvested or subject to any other contingencies) during the course of his employment with the Company prior to the termination of his employment; plus
(iii)      The Employee's base salary for the portion of the Employment Period remaining unexpired as of the termination date. For this purpose, the Employee's base salary shall be his base salary as in effect immediately prior to the termination of employment. For any fraction of a year included in the unexpired portion of the Employment Period, the Employee's base salary shall be prorated based upon a 365-day year; plus
(iv)      Incentive bonus compensation for the current fiscal year of the Company during which the termination of employment occurs and for all subsequent fiscal years of the Company thereafter which are included in whole or in part in the portion of the Employment Period remaining unexpired as of the termination date. The amount of the cash incentive bonus for any partial fiscal year included in the balance of the Employment Period shall be prorated based on a 365-day fiscal year. The amount of the annual bonus to be applied in calculating the incentive compensation payment shall be the average of the annual cash incentive bonuses earned by the Employee (whether such incentive bonuses were paid in the year earned or deferred for payment in subsequent years) under all short and long-term cash incentive bonus plans maintained by the Company in which the Employee participated during the Company's latest three consecutive fiscal years ended prior to the termination of the Employee's employment. If the Employee has been employed by the Company for less than three complete fiscal years prior to the date of the termination of his employment, then the amount of the annual bonus for purposes of computing these payments shall be based upon the average of the bonuses earned by the Employee during such smaller number of complete fiscal years during which he was employed by the Company prior to the date of the termination of his employment. If the Employee has not been employed for even one complete fiscal year prior to the date of the termination of his employment, then his annual bonus for purposes of computing this payment shall be calculated by prorating the bonus earned by the Employee for the portion of the Company's most recently completed fiscal year during which the Employee was employed, as though the Employee had been employed for such full fiscal year. Such proration shall be calculated based upon a 365-day fiscal year.
(c)      If during the six month period prior to a Change of Control, the Employee’s employment with the Company is terminated and if it is reasonably demonstrated by the Employee that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control, then for all purposes of this Agreement the Employee shall, effective as of the date of termination, (and subject to paragraph 7(e) below) be entitled to participate in group life, hospitalization and medical insurance described in paragraph 3(c) hereof, for a period of two years following the date of termination (provided that if the Employee would be eligible to participate in the Company’s retiree health plan (based on years of service without regard to age) if he had retired as of the termination date, he shall be entitled to participate in such retiree health plan upon such termination), and, no later than thirty (30) calendar days following such Change of Control, the Company shall pay to the Employee or his personal representative a severance payment in an amount equal to the sum of the following:
(i)      The Employee's annual base salary through the date of the termination of employment to the extent not theretofore paid; plus
(ii)      All deferred salary (including “bank” balances in the Company’s incentive compensation plans), profit sharing, bonuses and other compensation earned by the Employee (whether vested or unvested or subject to any other contingencies) during the course of his employment with the Company prior to the termination of his employment; plus
(iii)      An amount equal two (2) times to the Employee's annual base salary. For this purpose, the Employee's annual base salary shall be his annual base salary as in effect immediately prior to the termination of employment; plus
(iv)      An amount equal to two (2) times the Employee’s annual incentive bonus compensation. The amount of the annual incentive bonus to be applied in calculating the incentive compensation payment shall be the average of the annual cash incentive bonuses earned by the Employee (whether such incentive bonuses were paid in the year earned or deferred for payment in subsequent years) under all short and long-term cash incentive bonus plans maintained by the Company in which the Employee participated during the Company's latest three consecutive fiscal years ended prior to the termination of the Employee's employment. If the Employee has been employed by the Company for less than three complete fiscal years prior to the date of the termination of his employment, then the amount of the annual bonus for purposes of computing these payments shall be based upon the average of the bonuses earned by the Employee during such smaller number of complete fiscal years during which he was employed by the Company prior to the date of the termination of his employment. If the Employee has not been employed for even one complete fiscal year prior to the date of the termination of his employment, then his annual bonus for purposes of computing this payment shall be calculated by prorating the bonus earned by the Employee for the portion of the Company's most recently completed fiscal year during which the Employee was employed, as though the Employee had been employed for such full fiscal year. Such proration shall be calculated based upon a 365-day fiscal year.
(d)      If it shall be impossible or impracticable for the Employee to participate directly in certain programs or plans specified in subparagraph (b) or (c) above, then the Company shall provide, at the Company’s expense, for the provision to the Employee of benefits as nearly as possible identical to, and in no event less beneficial to the Employee than, those which would be provided to the Employee through direct participation or providing a cash payment(s) economically equivalent in value to such benefits.
(e)      If it is determined that any payment or distribution by the Company to or for the benefit of the Employee (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a "Payment") would constitute an excess “parachute payment” within the meaning of Section 280G of the Code and would result in the imposition on the Employee of an excise tax under Section 4999 of the Code (the “Excise Tax”), then the Employee shall be entitled to receive the Payments unless the after-tax amount that would be retained by the Employee (after taking into account any and all applicable federal, state and local excise, income or other taxes payable by the Employee, including the Excise Tax) is less than the after-tax amount that would be retained by the Employee (after taking into account any and all applicable federal, state and local excise, income or other taxes payable by the Employee, including the Excise Tax) if the Employee were instead to be paid or provided, as the case may be, the maximum amount of the Payments that the Employee could receive without being subject to the Excise Tax (the “Reduced Payments”), in which case the Employee shall be entitled only to the Reduced Payments. The reduction of the amounts payable hereunder, if applicable, shall be made by first reducing the payments under paragraph 7(b)(iii), unless an alternative method of reduction is elected by the Employee, and in any event shall be made in such a manner as to maximize the value of all Payments actually made to the Employee. For purposes of reducing the Payments, only amounts payable under this Agreement (and no other Payments) shall be reduced.
(f)      All determinations required to be made under this paragraph 7, and the assumptions to be utilized in arriving at such determination, shall be made by such certified public accounting firm as may be designated by the Employee (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and the Employee. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Company and the Employee.
(g)      In the event that any Payment to Employee pursuant to this Agreement or otherwise would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (or any comparable successor provision), the Company shall be entitled to withhold any such excise tax as required by applicable law, together with any other amounts required to be withheld under any applicable federal or state law.
8.      Termination for Cause . Employee agrees that this Agreement may be terminated by the Company at any time for cause, which shall mean only conviction based upon the commission of a felony or becoming the subject of a final nonappealable judgment of a court of competent jurisdiction holding that the Employee is liable to the Company for damages for obtaining a personal benefit in a transaction adverse to the interests of the Company. The Employee shall not be deemed to have been terminated for cause unless and until there shall have been delivered to the Employee a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board called and held for such purpose (after reasonable notice to the Employee and an opportunity for the Employee, together with his counsel, to be heard before the Board), finding that the Employee was guilty of conduct constituting cause for termination as set forth in this paragraph 8 and specifying the particulars thereof in detail. In the event this agreement is terminated for cause, the Employee shall forfeit his right to any and all benefits he would otherwise have been entitled thereafter to receive under the Agreement, but shall not forfeit his right to benefits accrued up to and including the date of termination.
9.      Death of Employee . Upon the death of the Employee during the Employment Period, the payment of base compensation as provided in subparagraph 3(a) shall continue through the last day of the month in which death occurs, and bonuses for the year in which death occurs shall be prorated on the basis of the number of months elapsed during the fiscal year as of such day. The other rights and benefits of the Employee (or his personal representative) shall be as determined under the applicable programs and plans of the Company covering the Employee at death.
10.      Stock Options and Restricted Shares . Upon the occurrence of a Change of Control of the Company, all stock options shall be fully vested and exercisable and all restrictions upon unconditional receipt by Employee of shares of stock or other securities of the Company granted under any restricted stock or other compensation plan shall immediately be removed, and such shares shall vest in and be distributed immediately to Employee. The Company covenants and agrees to take such steps (including amendment of any existing plan) to insure that all such plans shall allow or provide for such vesting and distribution.
11.      Noncompetition .
(a)      Scope of Noncompetition . In the event that the employment of the Employee is terminated pursuant to paragraph 7 prior to the expiration of the Employment Period such that the Employee receives the payments and benefits referred to in paragraph 7(b) or (c), the Employee agrees that he will not, for the Noncompetition Period (as hereinafter defined):
(i)      Render services, directly or indirectly, to any “Competitor” (other than the acquisition of an equity interest in a corporation or other entity registered under the Securities Exchange Act of 1934, as amended, not requiring the filing of a Schedule 13D or Schedule 13G or any successor schedules or forms) in connection with the development, manufacture, distribution, sale, merchandising or promotion of any “Competitive Product” or “Competitive Service.” “Competitor” means any corporation, person, firm or organization or division or part thereof engaged in or about to become engaged in research and development work on or the production and/or sale of any Competitive Product or Competitive Service in any country in which the Company or any of its affiliates sold a product or service to a customer within the two-year period ending on the effective date of the termination of Employee's employment with the Company. “Competitive Product” or “Competitive Service” means a product or service, as the case may be, made, offered, sold or provided by a Competitor, which is the same as, functionally equivalent to, or otherwise directly competitive with one made, offered, sold or provided by the business units of the Company over which the Employee had a material supervisory or management role.
(ii)      Engage either directly or indirectly, in any country in which the Company or any of its affiliates sold a product or service to a customer within the two-year period ending on the effective date of the termination of Employee's employment with the Company for himself or as an investor in the development, manufacture, purchase or sale of any Competitive Product or Competitive Service.
(b)      Noncompetition Period . For purposes of this paragraph 11, the term “Noncompetition Period” means the period beginning on the effective date of the termination of Employee’s employment with the Company and continuing for (i) the lesser of two years or the unexpired term of the Employment Period in the case of a severance payment made pursuant to paragraph 7(b), or (ii) two years in the case of a severance payment made pursuant to paragraph 7(c).
(c)      Survival . The noncompetition covenant in this paragraph 11 shall survive the termination of the Employee’s employment.
(d)      Notification to the Company . If the Employee notifies the Company of the occupation the Employee proposes to take up after termination of employment with the Company and furnishes the Company such written or oral information as it may reasonably request concerning such proposed occupation, the Company agrees to notify the Employee promptly, and in any event, within fourteen (14) business days after receipt of the requested information, whether or not the Company considers such occupation, based on the information so furnished or derived from its independent investigation, to come within the provisions of this Section and, if the Company considers such occupation to come within the provisions of this Section, whether the Company will waive any of the provisions thereof.
(e)      Remedies . In addition to other remedies provided by law or equity, upon a breach by the Employee of any of the covenants contained in this paragraph 11, the Company shall be entitled to have a court of competent jurisdiction enter an injunction against the Employee prohibiting any further breach of the covenants contained herein. The parties further agree that the services to be performed hereunder are of a unique, special, and extraordinary character. Therefore, in the event of any controversy concerning the rights or obligations under this Agreement, such rights or obligations shall be enforceable in a court of competent jurisdiction at law or equity by a decree of specific performance or, if the Company elects, by obtaining damages or such other relief as the Company may elect to pursue. Such remedies, however, shall be cumulative and nonexclusive and shall be in addition to any other remedies which the Company may have.
12.      Enforceability . The parties agree that nothing in this Agreement shall in any way abrogate the right of the Company and the Employee to enforce by injunction or otherwise the due and proper performance and observance of the several covenants herein contained to be performed by the Employee or the Company or to recover damages for breach thereof.
13.      Successors and Assigns . If the Company sells, assigns or transfers all or substantially all of its business, assets or earning power to any person, or if the Company merges into or consolidates or otherwise combines with any person which is the continuing or successor entity, then the Company shall assign all of its right, title and interest in this Agreement as of the date of such event to the person which is either the acquiring or successor corporation, and such person(s) shall assume and perform from and after the date of such assignment all of the terms, conditions and provisions imposed by this Agreement upon the Company. In case of such assignment by the Company and of assumption and agreement by such person(s), all further rights as well as all other obligations of the Company under this Agreement thenceforth shall cease and terminate. All rights of Employee hereunder shall inure to the benefit of the Employee and his heirs and personal representatives. Other than as specifically provided in this paragraph 13, neither the Company nor Employee may assign any rights or obligations hereunder without the express written consent of the other party.
14.      Termination Prior to Change of Control . Except as described herein in the event of a Change of Control, this Agreement is not intended to vest in Employee any right to continued employment by Company. Absent such a Change of Control and unless specifically established otherwise by agreement between the Company and Employee, Employee’s employment status with the Company is one of employment at-will.
15.      Supplemental Agreement . This Agreement supersedes any previously existing Contingent Employment Agreement of like nature between the Company and the Employee; however, this Agreement supplements, and is not an amendment to or in derogation of, any other agreement between the Company and the Employee relating to employment or the terms and conditions thereof. No person, other than such person as may be designated by the Board of Directors of the Company, shall have any authority on behalf of the Company to agree to modify or change this Agreement. Notwithstanding the foregoing, this Agreement supersedes and replaces any contingent employment agreement entered into between the Employee and the Company prior to the date of this Agreement which addresses terms of employment, compensation and severance benefits that would become available to the Employee in the event of a change of control of the Company, as that term may be defined in such other contingent employment agreement. Accordingly, any such other contingent employment agreements shall be deemed terminated and of no further force or effect.
16.      Section 409A . This Agreement and any payment, distribution or other benefit hereunder shall comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or an exemption or exclusion therefrom, as well as any related regulations or other guidance promulgated by the U.S. Department of the Treasury or the Internal Revenue Service (“Section 409A”), to the extent applicable, and shall in all respects be administered in accordance with Section 409A. To the extent Employee is a "specified employee" under Section 409A, no payment, distribution or other benefit described in this Agreement constituting a distribution of deferred compensation (within the meaning of Treasury Regulation Section 1.409A-1(b)) to be paid during the six-month period following Employee’s “separation from service” (within the meaning of Treasury Regulation Section 1.409A-1(h)) will be made during such six-month period. Instead, any such deferred compensation shall be paid on the first business day following the six-month anniversary of the separation from service. In no event may Employee, directly or indirectly, designate the calendar year of a payment. Any provision that would cause this Agreement or a payment, distribution or other benefit hereunder to fail to satisfy the requirements of Section 409A shall have no force or effect and, to the extent an amendment would be effective for purposes of Section 409A, the parties agree that this Agreement shall be amended to comply with Section 409A. Such amendment shall be retroactive to the extent permitted by Section 409A. For purposes of this Agreement, Employee shall not be deemed to have terminated employment unless and until a separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)) has occurred. Each payment under this Agreement shall be treated as a separate payment for purposes of Section 409A.
17.      Governing Law, Severability . This Agreement is to be governed by and construed under the internal laws of the State of Wisconsin. If any provision of this Agreement shall be held invalid and unenforceable for any reason, such provision shall be deemed deleted and the remainder of the Agreement shall be valid and enforceable without such provision.
IN WITNESS WHEREOF , the parties have executed this Agreement as of the date first above written.

THE MANITOWOC COMPANY, INC.

By:                                                       Name:                         
Title:                         

EMPLOYEE:

Name:                             

 

Exhibit 12.1
 
The Manitowoc Company, Inc.
Statement of Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratio data)

	
																						
 	 	For the Year Ended December 31,	
 	 	2012	 	2011	 	2010	 	2009	 	2008	 	
Earnings (loss) from continuing operations before income taxes (3)	 	$	130.3		 	$	33.9		 	$	(43.0	)	 	$	(676.1	)	 	$	81.7		 	
Fixed charges	 	162.3		 	173.3		 	212.1		 	217.9		 	65.5		 	
Total earnings available for fixed charges	 	$	292.6		 	$	207.2		 	$	169.1		 	$	(458.2	)	 	$	147.2		 	
Fixed charges:	 	 		 	 		 	 		 	 		 	 		 	
Interest expense	 	$	137.1		 	$	146.7		 	$	175.0		 	$	174.0		 	$	51.6		 	
Amortization of deferred financing costs (1)	 	8.2		 	10.4		 	22.0		 	28.8		 	2.5		 	
Portion of rent deemed interest factor (2)	 	17.0		 	16.2		 	15.1		 	15.1		 	11.4		 	
Total fixed charges	 	$	162.3		 	$	173.3		 	$	212.1		 	$	217.9		 	$	65.5		 	
Ratio of earnings to fixed charges (4)	 	1.8x		 	1.2x		 	n/a		 	n/a		 	2.2x		 	

Notes for explanations:
 
(1) Amortization of deferred financing costs was included in interest expense in the company’s Consolidated Statement of Operations prior to 2009:

	
																						
Interest expense per Consolidated Statements of Operations	 	$	137.1		 	$	146.7		 	$	175.0		 	$	174.0		 	$	54.1		 	
Less amortization of deferred financing costs	 	—		 	—		 	—		 	—		 	2.5		 	
Interest expense	 	$	137.1		 	$	146.7		 	$	175.0		 	$	174.0		 	$	51.6		 	
 
(2) One third of all rent expense is deemed representative of the interest factor
 
(3) 2009 amounts include the impact of $662.0 million of non-cash impairment changes.
 
(4) Additional earnings of $43.0 million in 2010 and $676.1 million in 2009 are needed to reach a ratio of earnings to fixed charges of 1.0x.

Exhibit 21

	
	
Subsidiaries of	
The Manitowoc Company, Inc. (WI)	

	
						
1		 	Appliance Scientific, Inc.	 	(Delaware)	
2		 	Beleggingsmaatsch appli Interbu BV	 	(Netherlands)	
3		 	Berisford (Jersey) Ltd.	 	(Channel Islands)	
4		 	Berisford (Overseas) Limited	 	(United Kingdom)	
5		 	Berisford Bristar Limited.	 	(United Kingdom)	
6		 	Berisford Charter Residential Limited	 	(United Kingdom)	
7		 	Berisford Holdings Limited	 	(United Kingdom)	
8		 	Berisford Property Development (USA) Ltd.	 	(New York)	
9		 	Boek-en Offsetdrukkerij Kuyte B.V.	 	(Netherlands)	
10		 	Cable Street Limited	 	(United Kingdom)	
11		 	Cadillion GmbH	 	(Germany)	
12		 	Charles Needham Industries Inc.	 	(Texas)	
13		 	Cleveland Range Ltd.	 	(Canada)	
14		 	Cleveland Range, LLC	 	(Delaware)	
15		 	Convotherm Elecktrogerate GmbH	 	(Germany)	
16		 	Convotherm India Private Limited	 	(India)	
17		 	Convotherm Limited	 	(United Kingdom)	
18		 	Convotherm Singapore PTE LTD	 	(Singapore)	
19		 	Cross Lane Holdings Ltd.	 	(Channel Islands)	
20		 	Delfield Company, LLC, The	 	(Delaware)	
21		 	Ecclesfield Properties Limited.	 	(United Kingdom)	
22		 	Elvadene Limited	 	(United Kingdom)	
23		 	Enodicom Limited	 	(United Kingdom)	
24		 	Enodicom Number 2 Limited	 	(United Kingdom)	
25		 	Enodis Clifton Park Ltd.	 	(United Kingdom)	
26		 	Enodis Corporation	 	(Delaware)	
27		 	Enodis Foodservice Equipment (Shanghai) Co. Ltd.	 	(China)	
28		 	Enodis Group Holdings, US Inc.	 	(Delaware)	
29		 	Enodis Group Italian Branch	 	(Italy)	
30		 	Enodis Group Limited.	 	(United Kingdom)	
31		 	Enodis Hanover	 	(United Kingdom)	
32		 	Enodis Holdings Inc.	 	(Delaware)	
33		 	Enodis Holdings Ltd.	 	(United Kingdom)	
34		 	Enodis Industrial Holdings Limited	 	(United Kingdom)	
35		 	Enodis International Ltd.	 	(United Kingdom)	
36		 	Enodis Investments Ltd.	 	(United Kingdom)	
37		 	Enodis Limited (UK) Enodis (Domestication) LLC	 	(Delaware)	
38		 	Enodis Maple Leaf Ltd.	 	(United Kingdom)	
39		 	Enodis Nederland B.V.	 	(Netherlands)	
40		 	Enodis Oxford	 	(United Kingdom)	
41		 	Enodis Property Development Ltd.	 	(United Kingdom)	
42		 	Enodis Property Group Ltd.	 	(United Kingdom)	
43		 	Enodis Regent	 	(United Kingdom)	
44		 	Enodis Strand Ltd.	 	(United Kingdom)	

1

	
						
45		 	Enodis Technology Center, Inc.	 	(Delaware)	
46		 	Environnemental Rehab, Inc.	 	(Wisconsin)	
47		 	Fabristeel (M) Sdn Bhd	 	(Malaysia)	
48		 	Fabristeel Private Limited	 	(Singapore)	
49		 	Fo Shan Manitowoc Foodservice Co.	 	(China)	
50		 	Frymaster LLC	 	(Louisiana)	
51		 	FSV Private Limited	 	(Singapore)	
52		 	Garland Catering Equipment Ltd.	 	(United Kingdom)	
53		 	Garland Commercial Industries, LLC	 	(Delaware)	
54		 	Garland Commercial Ranges Ltd	 	(Canada)	
55		 	Glenluce Ltd.	 	(Isle of Man)	
56		 	Grove Cranes S.L.	 	(Spain)	
57		 	Grove Europe Pension Trustees Limited	 	(United Kingdom)	
58		 	Grove U.S. LLC	 	(Delaware)	
59		 	H. Tieskens Beheer B.V	 	(Netherlands)	
60		 	H. Tieskens Exploitatie B.V	 	(Netherlands)	
61		 	Homark Holdings Ltd.	 	(United Kingdom)	
62		 	Inducs AG	 	(Switzerland)	
63		 	J.H. Rayner (Mincing Lane) Limited	 	(United Kingdom)	
64		 	Jackson MSC LLC	 	(Delaware)	
65		 	Kitchen Ventilation Services Ltd.	 	(United Kingdom)	
66		 	Kitecroft Ltd.	 	(United Kingdom)	
67		 	Kysor Business Trust	 	(Delaware)	
68		 	Kysor do Brasil Ltd	 	(Brazil)	
69		 	Kysor Holdings, Inc.	 	(Delaware)	
70		 	Kysor Industrial Corporation	 	(Michigan)	
71		 	Kysor Industrial Corporation	 	(Nevada)	
72		 	Kysor Nevada Holding Corporation	 	(Nevada)	
73		 	Liftlux Potain GmbH	 	(Germany)	
74		 	Manitowoc (Bermuda) Ltd.	 	(Bermuda)	
75		 	Manitowoc (China) Foodservice Co., Ltd.	 	(China)	
76		 	Manitowoc (Mauritius) Ltd.	 	(Mauritius)	
77		 	Manitowoc Asia Global Sourcing	 	(China)	
78		 	Manitowoc Beverage Systems Ltd.	 	(United Kingdom)	
79		 	Manitowoc Brasil Guindastes Ltda	 	(Brazil)	
80		 	Manitowoc Cayman Islands Funding Ltd.	 	(Cayman Islands)	
81		 	Manitowoc Company Foundation, The	 	(Michigan)	
82		 	Manitowoc CP, Inc.	 	(Nevada)	
83		 	Manitowoc Crane Companies, LLC (MCG)	 	(Wisconsin)	
84		 	Manimex, S.A. de C. V.	 	(Mexico)	
85		 	Manitowoc Crane Equipment (China) Co., Ltd.	 	(China)	
86		 	Manitowoc Crane Group (Brazil)	 	(Brazil)	
87		 	Manitowoc Crane Group (UK) Limited	 	(United Kingdom)	
88		 	Manitowoc Crane Group Asia Pte Ltd	 	(Singapore)	
89		 	Manitowoc Crane Group Australia Pty Ltd.	 	(Australia)	
90		 	Manitowoc Crane Group Chile Limitada	 	(Chile)	
91		 	Manitowoc Crane Group CIS	 	(Russia)	
92		 	Manitowoc Crane Group Columbia, S.A.S.	 	(Columbia)	
93		 	Manitowoc Crane Group Czech Republic SRO	 	(Czech Republic)	
94		 	Manitowoc Crane Group France SAS or MCG France SAS	 	(France)	

2

	
						
95		 	Manitowoc Crane Group Germany GmbH	 	(Germany)	
96		 	Manitowoc Crane Group Holding Germany Gmb	 	(Germany)	
97		 	Manitowoc Crane Group Hungary Kft	 	(Hungary)	
98		 	Manitowoc Crane Group Ibéria Sl	 	(Spain)	
99		 	Manitowoc Crane Group Inc.	 	(Philippines)	
100		 	Manitowoc Crane Group Italy Srl or MCG Italy Srl	 	(Italy)	
101		 	Manitowoc Crane Group Korea Co., Ltd.	 	(Korea)	
102		 	Manitowoc Crane Group M-E (FZE)	 	(Dubai, UAE)	
103		 	Manitowoc Crane Group Mexico, S. de R.L. de C.V.	 	(Mexico)	
104		 	Manitowoc Crane Group Netherlands B.V.	 	(Netherlands)	
105		 	Manitowoc Crane Group Poland Sp	 	(Poland)	
106		 	Manitowoc Crane Group Portugal Ltda	 	(Portugal)	
107		 	Manitowoc Crane Group Slovakia SRO	 	(Slovak Republik)	
108		 	Manitowoc Crane Group U.S. Holding, LLC	 	(Tennessee)	
109		 	Manitowoc Cranes, LLC	 	(Wisconsin)	
110		 	Manitowoc Credit (China) Leasing Company Limited	 	(China)	
111		 	Manitowoc Deutschland GmbH	 	(Germany)	
112		 	Manitowoc DongYue Heavy Machinery Co., Ltd	 	(Singapore)	
113		 	Manitowoc EMEA Holding SARL	 	(France)	
114		 	Manitowoc Equipment Works, Inc.	 	(Nevada)	
115		 	Manitowoc Europe Limited	 	(United Kingdom)	
116		 	Manitowoc Finance (Luxembourg) Sarl	 	(Luxembourg)	
117		 	Manitowoc Foodservice (Luxembourg) Sarl	 	(Luxembourg)	
118		 	Manitowoc Foodservice Asia Pacific Private Limited	 	(Singapore)	
119		 	Manitowoc Foodservice Companies, LLC	 	(Wisconsin)	
120		 	Manitowoc Foodservice Iberia, SAU	 	(Spain)	
121		 	Manitowoc Foodservice International SAS	 	(France)	
122		 	Manitowoc Foodservice UK Limited	 	(United Kingdom)	
123		 	Manitowoc FP, Inc.	 	(Nevada)	
124		 	Manitowoc France SAS	 	(France)	
125		 	Manitowoc FSG Holding, LLC	 	(Delaware)	
126		 	Manitowoc FSG International Holdings, Inc.	 	(Nevada)	
127		 	Manitowoc FSG Manufactura Mexico, S. De R.L. De C.V.	 	(Mexico)	
128		 	Manitowoc FSG Mexico, SRL de C.V.	 	(Mexico)	
129		 	Manitowoc FSG Operations, LLC	 	(Nevada)	
130		 	Manitowoc FSG Services, LLC	 	(Wisconsin)	
131		 	Manitowoc FSG U.S. Holding, LLC	 	(Delaware)	
132		 	Manitowoc Funding LLC	 	(Nevada)	
133		 	Manitowoc Grove (Cayman Islands) Ltd.	 	(Cayman Islands)	
134		 	Manitowoc Holding (Cayman Islands) Ltd.	 	(Cayman Islands)	
135		 	Manitowoc Holding Asia SAS	 	(France)	
136		 	Manitowoc Holding Germany LLC & Co. KG	 	(Germany)	
137		 	Manitowoc Holdings (Netherlands Antilles) B.V.	 	(Netherlands Antilles)	
138		 	Manitowoc India Private Limited	 	(India)	
139		 	Manitowoc Insurance Company Ltd.	 	(Barbados)	
140		 	Manitowoc MEC, Inc.	 	(Nevada)	
141		 	Manitowoc Potain	 	(United Kingdom)	
142		 	Manitowoc Potain (Cayman Islands) Ltd.	 	(Cayman Islands)	
143		 	Manitowoc Re-Manufacturing, LLC	 	(Wisconsin)	
144		 	Manitowoc TJ, SRL de C.V.	 	(Mexico)	

3

	
						
145		 	Manitowoc Worldwide Holdings (France) SAS	 	(France)	
146		 	Manitowoc Worldwide Holdings (France) SCS	 	(France)	
147		 	Manitowoc Worldwide Holdings (Netherlands) BV	 	(Netherlands)	
148		 	Manston Ltd. (BVI)	 	(United Kingdom)	
149		 	McCann's Engineering & Manufacturing Co., LLC	 	(California)	
150		 	Mealstream (UK) Ltd.	 	(United Kingdom)	
151		 	Meliora Spectare Ltd.	 	(United Kingdom)	
152		 	Merrychef Holdings Ltd.	 	(United Kingdom)	
153		 	Merrychef Ltd.	 	(United Kingdom)	
154		 	Merrychef Projects Ltd.	 	(United Kingdom)	
155		 	MMG Holding Co., LLC	 	(Nevada)	
156		 	MTW County Limited (UK) MTW County (Domestication) LLC	 	(Delaware)	
157		 	Potain GmbH	 	(Germany)	
158		 	Potain India Pvt. Ltd.	 	(India)	
159		 	Potain Technik GmbH	 	(Germany)	
160		 	Pumpcroft Ltd.	 	(United Kingdom)	
161		 	S&W Berisford Ltd.	 	(United Kingdom)	
162		 	SAW Technologies Ltd.	 	(United Kingdom)	
163		 	Shanghai Fabristeel Foodservice International Trade Co. Ltd.	 	(China)	
164		 	Shanghai Manitowoc International Trading Co., Ltd	 	(China)	
165		 	Société de Participation Minoritaire SARL (S.P.M. SARL)	 	(France)	
166		 	Solum Grundstücks Vermeitungs GmbH	 	(Germany)	
167		 	Steamhammer Ltd.	 	(United Kingdom)	
168		 	The Homark Group Ltd.	 	(United Kingdom)	
169		 	The Manitowoc Company, Inc. (MTW)	 	(Wisconsin)	
170		 	TRUpour Ltd.	 	(Ireland)	
171		 	Turner Curzon Ltd.	 	(United Kingdom)	
172		 	Twilight Band Ltd.	 	(United Kingdom)	
173		 	Viscount Catering Limited	 	(United Kingdom)	
174		 	Waterroad Company Limited	 	(United Kingdom)	
175		 	Welbilt Corporation	 	(Delaware)	
176		 	Welbilt Holding Company	 	(Delaware)	
177		 	Welbilt Manufacturing (Thailand) Ltd.	 	(Thailand)	
178		 	Welbilt Walk-Ins LP	 	(Delaware)	
179		 	Westran Corporation	 	(Michigan)	
180		 	Whitlenge Acquisition Ltd.	 	(United Kingdom)	
181		 	Whitlenge Drink Equipment Ltd.	 	(United Kingdom)	

4

Exhibit 23.1
 
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-170573) and Form S-8 (Nos. 333-115992, 333-113804, 333-40622, 333-37266, 333-11729, and 333-11731), of The Manitowoc Company, Inc. of our report dated February 28, 2013 relating to the financial statements, financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.
 
/s/ PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
February 28, 2013

Exhibit 31
 
Certifications
Certification of Principal Executive Officer
I, Glen E. Tellock, certify that:

1.	I have reviewed this Annual Report on Form 10-K of The Manitowoc Company, Inc.;	

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;	

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for the periods presented in this report;	

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:	

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;	

(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;	

(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedure and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and	

(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and	

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions)	

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and	

(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.	

		
Date: February 28, 2013	 	
 	 	
 	/s/ Glen E. Tellock	
 	Glen E. Tellock	
 	Chairman and Chief Executive Officer	

 

Certifications  
Certification of Principal Financial Officer
I, Carl J. Laurino, certify that:

1.	I have reviewed this Annual Report on Form 10-K of The Manitowoc Company, Inc.;	

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;	

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for the periods presented in this report;	

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:	

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;	

(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;	

(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedure and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and	

(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and	

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):	

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and	

(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.	

		
Date: February 28, 2013	 	
 	 	
 	/s/ Carl J. Laurino	
 	Carl J. Laurino	
 	Senior Vice President and Chief Financial Officer	

Exhibit 32.1
 
CERTIFICATION PURSUANT TO
18 U.S.C SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Annual Report of The Manitowoc Company, Inc. (the “Company”) on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Glen E. Tellock, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and	

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the date and for the periods expressed in the Report.	

	
/s/ Glen E. Tellock	
Glen E. Tellock	
Chairman and Chief Executive Officer	
February 28, 2013	
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The Manitowoc Company, Inc. and will be retained by The Manitowoc Company, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2
 
CERTIFICATION PURSUANT TO
18 U.S.C SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Annual Report of The Manitowoc Company, Inc. (the “Company”) on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Carl J. Laurino, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and	

(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the date and for the periods expressed in the Report.	

	
/s/ Carl J. Laurino	
Carl J. Laurino	
Senior Vice President and Chief Financial Officer	
February 28, 2013	
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The Manitowoc Company, Inc. and will be retained by The Manitowoc Company, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.