MANITOWOC FOODSERVICE, INC., 10-Q filed on 5/16/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2016
Document and entity information
 
Document Type
10-Q 
Amendment Flag
false 
Document Period End Date
Mar. 31, 2016 
Document Fiscal Year Focus
2016 
Document Fiscal Period Focus
Q1 
Trading Symbol
MFS 
Entity Registrant Name
MANITOWOC FOODSERVICE, INC. 
Entity Central Index Key
0001650962 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Non-accelerated Filer 
Entity Common Stock, Shares Outstanding
137,016,712 
Consolidated (Condensed) Statements of Operations (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operations
 
 
Net sales
$ 325.5 
$ 345.4 
Cost of sales
207.9 
238.8 
Gross profit
117.6 
106.6 
Costs and expenses:
 
 
Selling, general and administrative expenses
71.8 
82.4 
Amortization expense
7.8 
7.8 
Separation expense
3.0 
0 
Restructuring expense
1.3 
0.7 
Earnings before interest and taxes
33.7 
15.7 
Interest expense
(8.5)
(0.3)
Interest (expense) income on notes with MTW - net
(0.1)
4.7 
Other (expense) income - net
2.4 
(0.4)
Earnings from operations before income taxes
22.7 
20.5 
Income taxes
4.6 
6.5 
Net earnings
$ 18.1 
$ 14.0 
Per Share Data
 
 
Earnings from per common share - Diluted (in dollars per share)
$ 0.13 
$ 0.10 
Earnings from per common share - Basic (in dollars per share)
$ 0.13 
$ 0.10 
Weighted average shares outstanding - Basic (in shares)
137,016,712 
137,016,712 
Weighted average shares outstanding - Diluted (in shares)
138,564,299 
137,016,712 
Consolidated (Condensed) Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
Net earnings
$ 18.1 
$ 14.0 
Other comprehensive income (loss), net of tax
 
 
Foreign currency translation adjustments
17.2 
(11.1)
Unrealized gain (loss) on derivatives, net of income taxes of $0.5, and $0.6, respectively
0.9 
(1.7)
Employee pension and post-retirement benefits, net of income taxes of $5.9, and $0.0, respectively
(8.9)
1.7 
Total other comprehensive income (loss), net of tax
9.2 
(11.1)
Comprehensive income
$ 27.3 
$ 2.9 
Consolidated (Condensed) Statements of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
Unrealized gain (loss) on derivatives, taxes
$ 0.5 
$ 0.6 
Employee pension and post retirement benefits, taxes
$ 5.9 
$ 0 
Consolidated (Condensed) Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Finite-Lived Intangible Assets, Net
$ 513.5 
$ 519.6 
Current Assets:
 
 
Cash and cash equivalents
54.6 
32.0 
Restricted cash
0.3 
0.6 
Accounts receivable, less allowances of $4.2 and $4.0, respectively
88.9 
63.8 
Inventories — net
163.6 
145.9 
Prepaids and other current assets
13.7 
10.3 
Total current assets
321.1 
252.6 
Property, plant and equipment — net
116.3 
116.4 
Goodwill
846.2 
845.8 
Other non-current assets
22.1 
15.9 
Long-term assets held for sale
3.7 
3.7 
Total assets
1,822.9 
1,754.0 
Current Liabilities:
 
 
Accounts payable
122.3 
129.0 
Accrued expenses and other liabilities
138.7 
157.6 
Short-term borrowings
14.5 
0 
Current portion of long-term debt and capital leases
10.8 
0.4 
Product warranties
32.3 
34.3 
Total current liabilities
318.6 
321.3 
Long-term debt and capital leases
1,383.2 
2.3 
Deferred income taxes
154.2 
167.9 
Pension and postretirement health obligations
59.1 
33.3 
Other long-term liabilities
33.5 
20.5 
Total non-current liabilities
1,630.0 
224.0 
Total Equity:
 
 
Common stock (300,000,000 and 0 shares authorized, 137,016,712 shares and 0 shares issued and outstanding, respectively)
1.4 
0 
Additional paid-in capital (deficit)
(94.6)
0 
Retained earnings
2.8 
0 
Net parent company investment
0 
1,253.2 
Accumulated other comprehensive (loss) income
(35.3)
(44.5)
Total equity
(125.7)
1,208.7 
Total liabilities and equity
$ 1,822.9 
$ 1,754.0 
Consolidated (Condensed) Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Accounts receivable allowances
$ 4.2 
$ 4.0 
Common stock shares authorized (in shares)
300,000,000 
0 
Common stock shares issued (in shares)
137,016,072 
0 
Common stock shares outstanding (in shares)
137,016,072 
0 
Consolidated (Condensed) Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash Flows From Operations
 
 
Net earnings
$ 18.1 
$ 14.0 
Adjustments to reconcile net earnings to net cash used for operating activities:
 
 
Depreciation
4.3 
5.2 
Amortization of intangible assets
7.8 
7.8 
Amortization of deferred financing fees
0.4 
0 
Deferred income taxes
(2.9)
2.8 
Stock-based compensation expense
1.3 
1.0 
Loss on sale of property, plant, and equipment
0.1 
0 
Changes in operating assets and liabilities, excluding the effects of business acquisitions or dispositions:
 
 
Accounts receivable
(8.4)
20.7 
Inventories
(15.8)
(26.6)
Other assets
(8.3)
(2.4)
Accounts payable
(7.9)
(21.5)
Other current and long-term liabilities
(11.7)
(8.7)
Net cash used for operating activities
(23.0)
(7.7)
Cash Flows From Investing
 
 
Capital expenditures
(4.5)
(3.2)
Changes in restricted cash
0.3 
(0.2)
Net cash used for investing activities
(4.2)
(3.4)
Cash Flows From Financing
 
 
Proceeds from long-term debt and capital leases
1,431.4 
0.3 
Repayments on long-term debt and capital leases
(0.2)
(0.3)
Debt issuance costs
(40.6)
0 
Changes in short-term borrowings
14.5 
0 
Net transfers to MTW
1,362.0 
0 
Net transactions with MTW
6.1 
11.7 
Exercises of stock options
0.1 
0 
Net cash provided by financing activities
49.3 
11.7 
Effect of exchange rate changes on cash
0.5 
(1.0)
Net increase (decrease) in cash and cash equivalents
22.6 
(0.4)
Balance at beginning of period
32.0 
16.5 
Balance at end of period
$ 54.6 
$ 16.1 
Description of the Business and Basis of Presentation
Description of the Business and Basis of Presentation
Description of the Business and Basis of Presentation
The Spin-Off

On January 29, 2015, The Manitowoc Company, Inc. (“MTW”) announced plans to create two independent public companies to separately operate its two businesses: its Cranes business and its Foodservice business. To effect the separation, MTW first undertook an internal reorganization, following which MTW held the Cranes business, and Manitowoc Foodservice, Inc. ("MFS") held the Foodservice business. Then on March 4, 2016, MTW distributed all the MFS common stock to MTW’s shareholders on a pro rata basis, and MFS became an independent publicly traded company (the “Distribution”). As used in this Quarterly Report on Form 10-Q, “Spin-Off” refers to both the above described internal reorganization and Distribution, collectively.

In these consolidated (condensed) financial statements, unless the context otherwise requires:

•
"MFS" and the "Company" refer to Manitowoc Foodservice, Inc. and its consolidated (condensed) subsidiaries, after giving effect to the internal reorganization and the distribution, or, in the case of information as of dates or for periods prior to its separation from MTW, the combined entities of the Foodservice business, and certain other assets and liabilities that were historically held at the MTW corporate level, but were specifically identifiable and attributable to the Foodservice business; and

•
"MTW" refers to The Manitowoc Company, Inc. and its consolidated subsidiaries, other than, for all periods following the Spin-Off, MFS.

•
"Spin-Off" refers to both the above described internal reorganization and distribution, collectively.

Description of the Business
MFS is among the world’s most preferred and innovative commercial foodservice equipment companies. It designs, manufactures, and services an integrated portfolio of hot and cold category products. It has one of the industry’s broadest portfolios of products that create optimal value for its channel partners while delivering superior performance, quality, reliability, and durability for its customers. The Company's capabilities span refrigeration, ice-making, cooking, holding, food-preparation, and beverage-dispensing technologies, and allow it to equip entire commercial kitchens and serve the world’s growing demand for food prepared away from home. The Company supplies foodservice equipment to commercial and institutional foodservice operators such as full-service restaurants, quick-service restaurant chains, hotels, caterers, supermarkets, convenience stores, business and industry, hospitals, schools and other institutions.
Basis of Presentation
The accompanying unaudited consolidated (condensed) financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), and include the accounts of MFS and its subsidiaries. All intercompany balances and transactions related to MFS and its affiliates have been eliminated.
During the periods presented prior to the Spin-Off on March 4, 2016, the Company's financial statements were prepared on a combined standalone basis derived from the consolidated financial statements and accounting records of MTW. MFS functioned as part of the larger group of companies controlled by MTW. Accordingly, MTW performed certain corporate overhead functions for MFS. Therefore, certain costs related to MFS have been allocated from MTW for the portion of the three months ended March 31, 2016 up to the Spin-Off on March 4, 2016 and for the entirety of the three months ended March 31, 2015. These allocated costs are primarily related to: 1) corporate officers, 2) employee benefits and compensation, 3) share-based compensation, and 4) certain administrative functions, which are not provided at the business level including, but not limited to, finance, treasury, tax, audit, legal, information technology, human resources, and investor relations. Where possible, these costs were allocated based on direct usage, with the remainder allocated on a basis of revenue, headcount, or other measures the Company determined as reasonable.
Management of the Company believes the assumptions underlying the unaudited consolidated (condensed) financial statements, including the assumptions regarding the allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by the Company during the periods presented. Nevertheless, the accompanying unaudited consolidated (condensed) financial statements may not be indicative of the Company's future performance, and do not necessarily include all of the actual expenses that would have been incurred by the Company and may not reflect the results of operations, financial position, and cash flows had the Company been a standalone company during the entirety of the periods presented.




Accounting Policies
In the opinion of management, the accompanying unaudited consolidated (condensed) financial statements contain all adjustments necessary for a fair statement of the results of operations and comprehensive income for the three months ended March 31, 2016 and 2015, the cash flows for the same three-month periods, and the balance sheet at March 31, 2016 and December 31, 2015, and except as otherwise discussed such adjustments consist of only those of a normal recurring nature. The interim results are not necessarily indicative of results for a full year and do not contain information included in the Company’s annual consolidated financial statements and notes for the year ended December 31, 2015. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with U.S. GAAP, have been condensed or omitted pursuant to the SEC’s rules and regulations dealing with interim financial statements. However, the Company believes that the disclosures made in the unaudited consolidated (condensed) financial statements included herein are adequate to make the information presented not misleading. It is suggested that these unaudited financial statements be read in conjunction with the financial statements and the notes to the financial statements included in the Company’s latest annual report on Form 10-K.
Certain prior period amounts have been reclassified to conform to the current period presentation. All dollar amounts, except share and per share amounts, are in millions of dollars throughout the tables included in these notes unless otherwise indicated.
Recent Accounting Changes and Pronouncements
On March 30, 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, “Stock Compensation (Topic 718)” which simplifies several aspects of the accounting for share-based payment award transactions. This ASU requires that all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit on the income statement. The excess tax items should be classified with other income tax cash flows as an operating activity. This ASU also allows an entity to account for forfeitures when they occur rather than the current U.S. GAAP practice where an entity makes an entity-wide accounting policy election to estimate the number of awards that are expected to vest. This ASU is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.
On February 25, 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. ASU 2016-02 requires a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and provides certain practical expedients that companies may elect. This ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.
In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU provides guidance for the recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In November 2015, the FASB issued ASU No. 2015-17, "Balance Sheet Classification of Deferred Taxes (Subtopic 740-10)." ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the requirement for companies to present deferred tax liabilities and assets as current and non-current on the balance sheet. Instead, companies will be required to classify all deferred tax assets and liabilities as non-current. This guidance is effective for annual and interim periods beginning after December 15, 2016 and early adoption is permitted. The Company early adopted this ASU on a prospective basis as of December 31, 2015. Prior periods were not retrospectively adjusted.
In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments." The amendments in this ASU require that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, rather than as retrospective adjustments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not been issued. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated (condensed) financial statements.
In August 2015, the FASB issued ASU No. 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." This ASU clarifies the guidance related to accounting for debt issuance costs related to line-of-credit arrangements. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. With the issuance of ASU 2015-15, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted this accounting guidance in the first quarter of fiscal year 2016 and its impact is presented in the consolidated (condensed) financial statements.

In July 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This ASU changes the guidance on accounting for inventory accounted for on a first-in first-out basis (FIFO). Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out basis (LIFO). The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements.
In April 2015, the FASB issued ASU No. 2015-05, "Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification ("ASC") Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.
In February 2015, the FASB issued ASU No. 2015-02, “"Consolidation (Topic 820)—Amendments to the Consolidation Analysis." This ASU amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.
In January 2015, the FASB issued ASU No. 2015-01, "Income Statement—Extraordinary and Unusual Items." This update eliminates from U.S. GAAP the concept of extraordinary items. This ASU is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements.
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern." This update provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective in the first annual period ending after December 15, 2016, with early adoption permitted. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." This ASU provides a principles-based approach to revenue recognition to record the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contact, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. The revenue standard is effective for the first interim period within fiscal years beginning after December 15, 2017 (as finalized by the FASB in August 2015 in ASU 2015-14), and can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application along with additional disclosures. Early adoption is permitted as of the original effective date—the first interim period within fiscal years beginning after December 15, 2016. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The following tables set forth financial assets and liabilities which were attributable to the Company and were accounted for at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
 
Fair Value as of March 31, 2016
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$
—

 
$
—

 
$
—

 
$
—

Total current assets at fair value
 
$
—

 
$
—

 
$
—

 
$
—

Total assets at fair value
 
$
—

 
$
—

 
$
—

 
$
—

Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$
—

 
$
0.1

 
$
—

 
$
0.1

Commodity contracts
 
—

 
1.5

 
—

 
1.5

Total current liabilities at fair value
 
$
—

 
$
1.6

 
$
—

 
$
1.6

Non-current Liabilities:
 
 

 
 

 
 

 
 

Commodity contracts
 
$
—

 
$
0.1

 
$
—

 
$
0.1

Total non-current liabilities at fair value
 
$
—

 
$
0.1

 
$
—

 
$
0.1

Total liabilities at fair value
 
$
—

 
$
1.7

 
$
—

 
$
1.7

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

 
 

 
 

 
 

Foreign currency exchange contracts
 
$
—

 
$
—

 
$
—

 
$
—

Total current assets at fair value
 
$
—

 
$
—

 
$
—

 
$
—

Total assets at fair value
 
$
—

 
$
—

 
$
—

 
$
—

Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$
—

 
$
0.1

 
$
—

 
$
0.1

Commodity contracts
 
—

 
3.1

 
—

 
3.1

Total current liabilities at fair value
 
$
—

 
$
3.2

 
$
—

 
$
3.2

Non-current Liabilities:
 
 

 
 

 
 

 
 

Commodity contracts
 
$
—

 
$
0.4

 
$
—

 
$
0.4

Total non-current liabilities at fair value
 
$
—

 
$
0.4

 
$
—

 
$
0.4

Total liabilities at fair value
 
$
—

 
$
3.6

 
$
—

 
$
3.6


The fair value of the Company’s 9.50% Senior Notes due 2024 and Term Loan B under its credit facility was approximately $460.3 million and $976.2 million, respectively, as of March 31, 2016. Neither the Senior Notes nor Term Loan B existed as of December 31, 2015. See Note 9, “Debt,” for a description of the debt instruments and their related carrying values.
ASC Subtopic 820-10, "Fair Value Measurement," 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 Subtopic 820-10 classifies the inputs used to measure fair value into the following hierarchy:
Level 1
Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2
Unadjusted quoted prices in active markets for similar assets or liabilities, or
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
Inputs other than quoted prices that are observable for the asset or liability
Level 3
Unobservable inputs for the asset or liability
The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company estimates the fair value of its Senior Notes and Term Loan based on quoted market prices of the instruments. Because these markets are typically thinly traded, the assets and liabilities are classified as Level 2 within the valuation hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and deferred purchase price notes on receivables sold (see Note 8, “Accounts Receivable Securitization”), approximate fair value, without being discounted as of March 31, 2016 and December 31, 2015 due to the short-term nature of these instruments.
As a result of its global operating and financing activities, the Company is exposed to market risks from changes in foreign currency exchange rates, and commodity prices, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes these risks through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes, and the Company does not use leveraged derivative financial instruments. The foreign currency exchange and commodity contracts are valued through an independent valuation source which uses an industry standard data provider, with resulting valuations periodically validated through third-party or counterparty quotes. As such, these derivative instruments are classified within Level 2.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
The Company uses derivative instruments to manage business risk exposures that have been identified through the risk identification and measurement process, provided they clearly qualify as “hedging” activities as defined in its risk policy. It is the Company’s policy to enter into derivative transactions only to the extent true exposures exist; the Company does not enter into derivative transactions for speculative or trading purposes. 
The primary risks the Company manages using derivative instruments are commodity price risk and foreign currency exchange risk. Swap contracts on various commodities are used to 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 its projected purchases and sales and foreign currency denominated receivable and payable balances.
The Company designates commodity swaps and foreign currency exchange contracts as cash flow hedges of forecasted purchases of commodities and currencies.
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 (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. In the next twelve months the Company estimates $0.8 million of unrealized loss, net of tax, related to commodity price and currency rate hedging will be reclassified from other comprehensive (loss) 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.
For derivative instruments that are not designated as hedging instruments, the gains or losses on the derivatives are recognized in current earnings within other (expense) income, net in the combined statement of operations.
The fair value of outstanding derivative contracts recorded as liabilities in the accompanying combined balance sheet as of March 31, 2016 and December 31, 2015 are included within accounts payable and accrued expenses and other non-current liabilities and were not material in the periods presented.
Inventories
Inventories
Inventories
The components of inventories at March 31, 2016 and December 31, 2015 are summarized as follows:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Inventories — gross:
 
 

 
 

Raw materials
 
$
72.5

 
$
70.7

Work-in-process
 
21.7

 
18.7

Finished goods
 
98.2

 
83.4

Total inventories — gross
 
192.4

 
172.8

Excess and obsolete inventory reserve
 
(25.4
)
 
(23.5
)
Net inventories at FIFO cost
 
167.0

 
149.3

Excess of FIFO costs over LIFO value
 
(3.4
)
 
(3.4
)
Inventories — net
 
$
163.6

 
$
145.9

Property, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment
The components of property, plant and equipment at March 31, 2016 and December 31, 2015 are summarized as follows:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Land
 
$
7.3

 
$
7.3

Building and improvements
 
94.9

 
94.3

Machinery, equipment and tooling
 
214.2

 
216.0

Furniture and fixtures
 
6.2

 
6.2

Computer hardware and software
 
52.5

 
51.2

Construction in progress
 
12.0

 
9.8

Total cost
 
387.1

 
384.8

Less accumulated depreciation
 
(270.8
)
 
(268.4
)
Property, plant and equipment - net
 
$
116.3

 
$
116.4

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
The Company has three reportable segments: Americas, EMEA, and APAC. The Americas segment includes the U.S., Canada and Latin America. The EMEA segment is made up of markets in Europe, Middle East and Africa, including Russia and the commonwealth of independent states. The APAC segment is principally comprised of markets in China, Singapore, Australia, India, Malaysia, Indonesia, Thailand and Philippines. The changes in the carrying amount of goodwill by reportable segment for three months ended March 31, 2016, were as follows:
(in millions)
 
Americas
 
EMEA
 
APAC
 
Total
Balance as of December 31, 2015
 
$
832.6

 
$
4.8

 
$
8.4

 
$
845.8

Foreign currency impact
 
—

 
0.2

 
0.2

 
0.4

Balance as of March 31, 2016
 
$
832.6

 
$
5.0

 
$
8.6

 
$
846.2


The Company accounts for goodwill and other intangible assets under the guidance of ASC Topic 350, “Intangibles - Goodwill and Other.” The Company performs an annual impairment test or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company tests its reporting units and indefinite-lived intangible assets using a fair-value method based on the present value of future cash flows, which involves management’s judgments and assumptions about the amounts of those cash flows and the discount rates used. The estimated fair value is then compared with the carrying amount of the reporting unit, including recorded goodwill, or indefinite-lived intangible asset. The intangible asset is then subject to risk of write-down to the extent that the carrying amount exceeds the estimated fair value.
As of June 30, 2015, the Company performed the annual impairment test for its reporting units, which were Americas, EMEA, and APAC, as well as its indefinite-lived intangible assets, and based on those results, no impairment was indicated.
The gross carrying amount and accumulated amortization of MFS’ intangible assets other than goodwill are as follows as of March 31, 2016 and December 31, 2015:
 
 
March 31, 2016
 
December 31, 2015
(in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
Trademarks and tradenames
 
$
176.3

 
$
—

 
$
176.3

 
$
175.1

 
$
—

 
$
175.1

Customer relationships
 
415.3

 
(155.7
)
 
259.6

 
415.2

 
(150.4
)
 
264.8

Patents
 
1.7

 
(1.7
)
 
—

 
1.7

 
(1.6
)
 
0.1

Other intangibles
 
144.2

 
(66.6
)
 
77.6

 
143.2

 
(63.6
)
 
79.6

Total
 
$
737.5

 
$
(224.0
)
 
$
513.5

 
$
735.2

 
$
(215.6
)
 
$
519.6


Amortization expense for the three months ended March 31, 2016 and 2015 was $7.8 million and $7.8 million, respectively.
Accounts Payable and Accrued Expenses and Other Liabilities
Accounts Payable and Accrued Expenses and Other Liabilities
Accounts Payable and Accrued Expenses and Other Liabilities
Accounts payable and Accrued expenses and other liabilities at March 31, 2016 and December 31, 2015 are summarized as follows:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Accounts payable:
 
 
 
 
Trade accounts payable and interest payable
 
$
114.5

 
$
121.7

Income taxes payable
 
7.8

 
7.3

Total accounts payable
 
$
122.3

 
$
129.0

Accrued expenses and other liabilities:
 
 
 
 
Employee related expenses
 
$
31.3

 
$
24.5

Restructuring expenses
 
5.1

 
16.8

Profit sharing and incentives
 
6.6

 
3.9

Accrued rebates
 
39.1

 
51.6

Deferred revenue - current
 
3.8

 
3.8

Dividend payable to MTW
 
—

 
10.2

Customer advances
 
5.4

 
2.9

Product liability
 
2.8

 
2.6

Miscellaneous accrued expenses
 
44.6

 
41.3

Total accrued expenses and other liabilities
 
$
138.7

 
$
157.6

Accounts Receivable Securitization
Accounts Receivable Securitization
Accounts Receivable Securitization
Prior to the Spin-Off, the Company sold accounts receivable through an accounts receivable securitization facility, ("the Prior Securitization Program"), comprised of two funding entities: Manitowoc Funding, LLC ("U.S. Seller") and Manitowoc Cayman Islands Funding Ltd. ("Cayman Seller"). The U.S. Seller historically serviced domestic entities of both the Foodservice and Cranes segments of MTW and remitted all funds received directly to MTW. The Cayman Seller historically serviced solely MFS foreign entities and remitted all funds to MFS entities. The U.S. Seller entity remained with MTW subsequent to the Spin-Off, while the Cayman Seller was transferred to MFS subsequent to the Spin-Off. As the U.S. Seller is not directly attributable to MFS, only the receivables which were transferred to the U.S. Seller but not sold are reflected in MFS' consolidated (condensed) balance sheet. A portion of the U.S. Seller’s historical expenses related to bond administration fees and settlement fees are allocated to MFS. As the Cayman Seller is directly attributable to MFS, the assets, liabilities, income and expenses of the Cayman Seller are included in MFS’ consolidated (condensed) statement of operations and balance sheet. The maximum commitment size of the historic MTW securitization facility was $185.0 million. MFS' cost of funds under the facility used a LIBOR index rate plus a 1.25% fixed spread.
On March 3, 2016, MFS entered into a new $110.0 million accounts receivable securitization program (the "2016 Securitization Facility") among the Cayman Seller, as seller, MFS, Garland Commercial Ranges Limited, Convotherm Elektrogeräte GmbH, Manitowoc Deutschland GmbH, Manitowoc Foodservice UK Limited, Manitowoc Foodservice Asia Pacific Private Limited, and the other persons from time to time party thereto, as servicers, with Wells Fargo Bank, National Association, as purchaser and agent, whereby MFS will sell certain of its domestic trade accounts receivable and certain of its non-U.S. trade accounts receivable to a wholly-owned, bankruptcy-remote, foreign special purpose entity, which entity in turn, will sell, convey, transfer and assign to a third-party financial institution (a “Purchaser”), all of the right, title and interest in and to its pool of receivables to the Purchaser. The Purchaser will receive ownership of the pool of receivables. The Company, along with certain of its subsidiaries, act as servicers of the receivables and as such administer, collect and otherwise enforce the receivables. The servicers will be compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. As servicers, they will initially receive payments made by obligors on the receivables but will be required to remit those payments in accordance with a receivables purchase agreement. The Purchaser will have no recourse for uncollectible receivables. The 2016 Securitization Facility 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 total leverage ratio that are the same as the covenant ratios required per the 2016 Credit Agreement.

Due to a short average collection cycle of less than 60 days for such accounts receivable as well as the Company's collection history, the fair value of its deferred purchase price notes approximated book value. The fair value of the deferred purchase price notes recorded at March 31, 2016 and December 31, 2015 was $67.9 million and $48.4 million, respectively, and is included in accounts receivable in the accompanying unaudited condensed consolidated balance sheets.
Trade accounts receivables sold to the Purchaser and being serviced by the Company totaled $79.6 million at March 31, 2016 and $100.9 million at December 31, 2015. Of this decrease, approximately $15.9 million was attributable to the balance being allocated from MTW from a combined securitization facility on a carve out basis at December 31, 2015 as compared to the specific deferred purchase price notes on a standalone basis at March 31, 2016 and is reflected in Net Transactions with MTW in the Cash Flows from Financing section of the consolidated (condensed) statement of cash flows.
Transactions under the Prior Securitization Program were 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 unaudited condensed 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 condensed 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.
Debt
Debt
Debt
Outstanding debt at March 31, 2016 and December 31, 2015 is summarized as follows:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Revolving credit facility
 
$
31.2

 
$
—

Term Loan B
 
975.0

 
—

Senior Notes due 2024
 
425.0

 
—

Other
 
17.4

 
2.7

Total debt and capital leases including current portion
 
1,448.6

 
2.7

Less current portion and short-term borrowings
 
(25.3
)
 
(0.4
)
Less unamortized debt issuance costs
 
(40.1
)
 
—

Total long-term debt and capital leases
 
$
1,383.2

 
$
2.3

 
On March 3, 2016, the Company incurred a total of approximately $1,400.0 million in new indebtedness, and had approximately an additional $225.0 million available under a senior secured revolving credit facility, limited by the amount of letters of credit outstanding at any given point of time. The outstanding indebtedness at March 31, 2016 consisted of a $975.0 million senior secured Term Loan B facility; $425.0 million aggregate principal amount of 9.5% senior notes due 2024, and $31.2 million outstanding under the senior secured revolving credit facility.
Senior Secured Credit Facilities
MFS entered into a credit agreement (the "2016 Credit Agreement") for a new senior secured revolving credit facility in an aggregate principal amount of $225.0 million (the "Revolving Facility") and a senior secured Term Loan B facility in an aggregate principal amount of $975.0 million (the "Term Loan Facility" and, together with the Revolving Facility, the "Senior Secured Credit Facilities") with JPMorgan Chase Bank, N.A, as administrative agent and collateral agent, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., and Citigroup Global Markets Inc., on behalf of certain of its affiliates, as joint lead arrangers and joint bookrunners, and certain lenders, as lenders. The Revolving Facility includes (i) a $20.0 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $40.0 million sublimit for swingline loans on customary terms. The Company entered into security and other agreements relating to the 2016 Credit Agreement.
Borrowings under the Senior Secured Credit Facilities bear interest at a rate per annum equal to, at the option of MFS, (i) LIBOR plus the applicable margin of approximately 4.75% for term loans subject to a 1.00% LIBOR floor and 1.50% - 2.75% for revolving loans, based on consolidated total leverage, or (ii) an alternate base rate plus the applicable margin, which will be 1.00% lower than for LIBOR loans.
The 2016 Credit Agreement contains financial covenants including (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) Consolidated EBITDA, as defined in the credit agreement, to (ii) consolidated cash interest expense, (b) a Consolidated Total Leverage Ratio, which measures the ratio of (i) consolidated indebtedness to (ii) Consolidated EBITDA for the most recent four fiscal quarters. The current covenant levels of the financial covenants under the Senior Secured Credit Facility are as set forth below:
Fiscal Quarter Ending
Consolidated Total Leverage Ratio (less than)
Consolidated Interest Coverage Ratio (greater than)
March 31, 2016
6.25:1.00
2.00:1.00

Obligations of the Company under the Credit Facilities are jointly and severally guaranteed by certain of its existing and future direct and indirectly wholly-owned U.S. subsidiaries (but excluding (i) unrestricted subsidiaries, (ii) immaterial subsidiaries, and (iii) special purpose securitization vehicles).
There is a first priority perfected lien on substantially all of the assets and property of MFS and guarantors and proceeds therefrom excluding certain excluded assets. The liens securing the obligations of the Company under the Revolving Facility and the Term Loan Facility are pari passu.
Senior Notes
The Company issued 9.5% senior notes due 2024 in an aggregate principal amount of $425.0 million (the "Senior Notes") under an indenture with Wells Fargo Bank, National Association, as trustee (the "Trustee"). The Senior Notes were sold to qualified institutional buyers pursuant to Rule 144A (and outside the United States in reliance on Regulation S) under the Securities Act. The Senior Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by each of MFS’ domestic restricted subsidiaries that is a borrower or guarantor under the Credit Facilities. The Senior Notes and the subsidiary guarantees are unsecured, senior obligations. The notes are redeemable, at the Company's option, in whole or in part from time to time, at any time prior to February 15, 2019, at a price equal to 100% of the principal amount thereof plus a “make-whole” premium and accrued but unpaid interest to the date of redemption. In addition, the Company may redeem the notes at its option, in whole or in part, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the 12-month period commencing on February 15 of the years set forth below:
Year
Percentage

2019
107.1
%
2020
104.8
%
2021
102.4
%
2022 and thereafter
100.0
%

The Company must generally offer to repurchase all of the outstanding Senior Notes upon the occurrence of certain specific change of control events at a purchase price equal to 101% of the principal amount of Senior Notes purchased plus accrued and unpaid interest to the date of purchase. The indenture provides for customary events of default. Generally, if an event of default occurs (subject to certain exceptions), the Trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding Senior Notes may declare all the Senior Notes to be due and payable immediately.
As of March 31, 2016, the Company had outstanding $17.4 million of other indebtedness that has a weighted-average interest rate of approximately 2.63%. 
As of March 31, 2016, the Company had $31.2 million of borrowings outstanding under the revolving facility. During the quarter ended March 31, 2016, the highest daily borrowing was $34.2 million and the average borrowing was $17.9 million, while the average interest rate was 4.6% per annum. 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 March 31, 2016, the spreads for LIBOR and Prime borrowings were 2.75% and 1.75%, respectively, given the Company’s effective Consolidated Total Leverage Ratio for this period.
As of March 31, 2016, the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the Senior Secured Credit Facility and the 2024 Senior Notes. Based upon management’s current plans and outlook, management believes the Company will be able to comply with these covenants during the subsequent 12 months. As of March 31, 2016 the Company's Consolidated Total Leverage Ratio was 5.49:1, while the maximum ratio is 6.25:1 and its Consolidated Interest Coverage Ratio was 5.91:1, above the minimum ratio of 2.00:1.
Income Taxes
Income Taxes
Income Taxes
For the three months ended March 31, 2016, the Company recorded a $4.6 million income tax provision, compared to a $6.5 million income tax provision for the three months ended March 31, 2015. The decrease in the Company’s tax provision for the three months ended March 31, 2016, compared to the first quarter of 2015, resulted primarily from $2.9 million in tax-related out-of-period balance sheet adjustments related to the Spin-Off that were recognized as discrete adjustments in the income tax provision for the first quarter of 2016. The Company does not believe these adjustments are material to its consolidated (condensed) financial statements for the three months ended March 31, 2016, or its comparative annual or quarterly financial statements.
The Company's effective tax rate varies from the 35% U.S. federal statutory rate due to the relative weighting of foreign earnings before income taxes and foreign effective tax rates that are generally lower than the U.S. federal statutory rate. Foreign earnings are generated from operations in the three reportable segments of Americas, EMEA, and APAC.
The Company will continue to periodically evaluate its valuation allowance requirements in light of changing facts and circumstances, and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to, or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in the current operations through the Company’s income tax provision, and could have a material effect on operating results.
The Company's unrecognized tax benefits, including interest and penalties, were $12.5 million and $16.6 million amount as of March 31, 2016 and December 31, 2015, respectively. The decrease for the three months ended March 31, 2016 related to the portion of the unrecognized tax benefits allocable to the Company that were included in equity. During the next twelve months, it is reasonably possible that $0.7 million of the unrecognized tax benefits, if recognized, would affect the relevant effective tax rate.

The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of March 31, 2016, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows. However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments.
Equity
Equity
Equity
On March 4, 2016, MTW distributed 137.0 million shares of MFS common stock to MTW’s shareholders on a pro rata basis, and MFS became an independent publicly traded company with each shareholder receiving one share of its common stock for each share of MTW common stock held by the shareholder on February 22, 2016, the record date for the distribution. Any fractional shares of its common stock otherwise issuable to MTW shareholders were aggregated into whole shares and sold on the open market, and the fractional shareholders will receive a pro rata share of the proceeds of the sale, after deducting any taxes required to be withheld and after deducting an amount equal to all brokerage fees and other costs attributed to the sale.

On March 3, 2016, prior to the completion of the Spin-Off, MFS paid a one-time cash dividend to MTW of $1.362 billion. The Company did not declare or pay any other dividends to its stockholders during the three months ended March 31, 2016 or the three months ended March 31, 2015.
The following is a roll forward of stockholders’ equity and net parent investment for the three months ended March 31, 2016 and 2015:
(Dollars in millions, shares in thousands)
Shares
Common Stock
Additional Paid-In Capital
Retained Earnings
Net Parent Company Investment
Accumulated Other Comprehensive (Loss) Income
Total Equity
Balance at December 31, 2015
—

$
—

$
—

$
—

$
1,253.2

$
(44.5
)
$
1,208.7

Net earnings
—

—

—

2.8

15.3

—

18.1

Net transfers to MTW
—

—

—

—

(1,362.0
)
—

(1,362.0
)
Separation related adjustments
—

—

—

—

(1.0
)
(47.4
)
(48.4
)
Reclassification of net investment to additional paid-in capital
—

—

(94.5
)
—

94.5

—

—

Issuance of common stock at Spin-off
137,016.7

1.4

(1.4
)
—

—

—

—

Stock-based compensation expense

—

—

1.3

—

—

—

1.3

Activity under stock plans
—

—

—

—

—

—

—

Dividends to shareholders
—

—

—

—

—

—

—

Other comprehensive income (loss)
—

—

—

—

—

56.6

56.6

Balance at March 31, 2016
137.0

$
1.4

$
(94.6
)
$
2.8

$
—

$
(35.3
)
$
(125.7
)
(Dollars in millions, shares in thousands)
Shares
Common Stock
Additional Paid-In Capital
Retained Earnings
Net Parent Company Investment
Accumulated Other Comprehensive (Loss) Income
Total Equity
Balance at December 31, 2014
—

$
—

$
—

$
—

$
1,272.1

$
(20.7
)
$
1,251.4

Net earnings
—

—

—

—

14.0

—

14.0

Other comprehensive income (loss)
—

—

—

—

—

(11.1
)
(11.1
)
Net increase in net parent company investment
—

—

—

—

23.0

—

23.0

Balance at March 31, 2015
—

$
—

$
—

$
—

$
1,309.1

$
(31.8
)
$
1,277.3


Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the three months ended March 31, 2016 and 2015 are as follows:
(in millions)
 
Foreign Currency Translation
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2015
 
$
(7.9
)
 
$
(1.8
)
 
$
(34.8
)
 
$
(44.5
)
Other comprehensive income (loss) before reclassifications
 
17.2

 
0.3

 
(9.4
)
 
8.1

Amounts reclassified from accumulated other comprehensive income (loss)
 
—

 
0.6

 
0.5

 
1.1

Net current period other comprehensive income (loss)
 
17.2

 
0.9

 
(8.9
)
 
9.2

Balance at March 31, 2016
 
$
9.3

 
$
(0.9
)
 
$
(43.7
)
 
$
(35.3
)
(in millions)
 
Foreign Currency Translation
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2014
 
$
17.3

 
$
(1.0
)
 
$
(37.0
)
 
$
(20.7
)
Other comprehensive income (loss) before reclassifications
 
(11.1
)
 
(2.4
)
 
1.4

 
(12.1
)
Amounts reclassified from accumulated other comprehensive income (loss)
 
—

 
0.7

 
0.3

 
1.0

Net current period other comprehensive income (loss)
 
(11.1
)
 
(1.7
)
 
1.7

 
(11.1
)
Balance at March 31, 2015
 
$
6.2

 
$
(2.7
)
 
$
(35.3
)
 
$
(31.8
)

The following is a reconciliation of the reclassifications out of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2016:
 
 
Three Months Ended March 31, 2016
 
 
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
Foreign exchange contracts
 
$
(0.1
)
 
Cost of sales
Commodity contracts
 
(0.9
)
 
Cost of sales
 
 
(1.0
)
 
Total before tax
 
 
0.4

 
Tax expense
 
 
$
(0.6
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
Actuarial losses
 
(0.6
)
(a)
 
 
 
(0.6
)
 
Total before tax
 
 
0.1

 
Tax benefit
 
 
$
(0.5
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period, net of tax
 
$
(1.1
)
 
 
 
 
 
 
 
(a) These other comprehensive income components are included in the net periodic pension cost (see Note 16, “Employee Benefit Plans,” for further details).

The following is a reconciliation of the reclassifications out of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2015:
 
 
Three Months Ended March 31, 2015
 
 
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
Foreign exchange contracts
 
$
(0.5
)
 
Cost of sales
Commodity contracts
 
(0.6
)
 
Cost of sales
 
 
(1.1
)
 
Total before tax
 
 
0.4

 
Tax expense
 
 
$
(0.7
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
Actuarial losses
 
(0.3
)
(a)
 
 
 
(0.3
)
 
Total before tax
 
 
—

 
Tax benefit
 
 
$
(0.3
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period, net of tax
 
$
(1.0
)
 
 
 
 
 
 
 
(a) These other comprehensive income (loss) components are included in the net periodic pension cost (see Note 16, “Employee Benefit Plans,” for further details).
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
The Company's employees have historically participated in MTW's stock-based compensation plans. Stock-based compensation expense has been allocated to the Company based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, the Company continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the Company's employees.
The Company adopted the MFS 2016 Omnibus Incentive Compensation Plan (the “2016 Plan”), under which it makes equity-based and cash-based incentive awards to attract, retain, focus and motivate executives and other selected employees, directors, consultants and advisors. The 2016 Plan is intended to accomplish these objectives by offering participants the opportunity to acquire shares of MFS common stock, receive monetary payments based on the value of such common stock or receive other incentive compensation under the 2016 Plan. In addition, the 2016 Plan permits the issuance of awards (“Replacement Awards”) in partial substitution for awards relating to shares of common stock of MTW immediately prior to the Spin-Off.
The Company's Compensation Committee administers the 2016 Plan (the “Administrator”). The 2016 Plan authorizes the Administrator to interpret the provisions of the 2016 Plan; prescribe, amend and rescind rules and regulations relating to the 2016 Plan; correct any defect, supply any omission, or reconcile any inconsistency in the 2016 Plan, any award or any agreement covering an award; and make all other determinations necessary or advisable for the administration of the 2016 Plan, in each case in its sole discretion.
The 2016 Plan permits the granting of stock options (including incentive stock options), stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, annual cash incentives, long-term cash incentives, dividend equivalent units and other types of stock-based awards. The 2016 Plan provides that 9.8 million shares of MFS common stock are reserved for issuance under the Plan, all of which may be issued upon the exercise of incentive stock options. These numbers may be adjusted in the event of certain corporate transactions or other events specified in the 2016 Plan.
Following the Spin-Off in March 2016, MFS granted long-term stock-based incentive awards under the 2016 Plan to its executive officers. The long-term stock-based incentive awards consisted of stock options with 4-year ratable vesting (25% of the aggregate grant value of the long-term incentive award) and performance shares (75% of the aggregate grant value of the long-term incentive award) that will be earned or forfeited based on performance as measured by cumulative fully diluted earnings per share and return on invested capital over a 3-year performance period. The details of these awards to the Company's named executive officers will be disclosed as required by applicable SEC regulations in the Company’s proxy statement for its annual meeting in 2017.
Total stock-based compensation expense was $0.8 million and $1.0 million for the three months ended March 31, 2016 and 2015, respectively. The total stock-based compensation of $0.8 million recorded for the three months ended March 31, 2016, was comprised of $0.5 million of stock-based compensation expense incurred subsequent to the Spin-Off and $0.3 million of expense incurred prior to the Spin-Off based on an allocation from MTW. Fiscal year 2016 also included $0.5 million of additional separation expense recorded as a result of the modification of certain MTW restricted stock unit awards to pay out at target upon consummation of the Spin-Off.
The Company recognizes stock-based compensation expense over the stock-based awards’ vesting period.
The Company granted options to acquire 0.3 million and 0.1 million shares of common stock to employees during the three months ended March 31, 2016 and 2015, respectively. In addition, MTW issued a total of 0.3 million restricted stock units to employees and directors during the three months ended March 31, 2016, and 0.2 million shares of restricted stock units to employees and directors during the three months ended March 31, 2015. The restricted stock units granted to employees in 2015 vest on the third anniversary of the grant date. The restricted stock units granted to directors in 2015 vest on the second anniversary of the grant date.
Contingencies and Significant Estimates
Contingencies and Significant Estimates
Contingencies and Significant Estimates
As of March 31, 2016, the Company held reserves for environmental matters related to certain locations of approximately $0.3 million. At certain of the Company's other facilities, it 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 or in the 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, it does not expect environmental compliance costs to have a material adverse effect on its financial condition, results of operations, or cash flows.
As of March 31, 2016, various product-related lawsuits were pending. To the extent permitted under applicable law, all of these are insured with self-insurance retention levels. The Company's self-insurance retention levels vary by business, and have fluctuated over the last 10 years. The range of the Company's self-insured retention levels is $0.1 million to $0.3 million per occurrence. As of March 31, 2016, the largest self-insured retention level for new occurrences currently maintained by the Company was $0.3 million per occurrence and applied to product liability claims for the hot category products manufactured in the United States.
Product liability reserves in the consolidated (condensed) balance sheets at March 31, 2016 and December 31, 2015 were $2.8 million and $2.6 million, respectively; $0.8 million and $0.9 million, respectively, was reserved specifically for actual cases, and $2.0 million and $1.7 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 March 31, 2016 and December 31, 2015, the Company had reserved $32.3 million and $34.3 million, respectively, for warranty claims included in product warranties and other non-current liabilities in the condensed consolidated balance sheets. Certain of these warranty and other related claims involve matters in dispute that ultimately are resolved by negotiations, arbitration, or litigation. See Note 14, “Product Warranties,” for further information.
It is reasonably possible that the estimates for environmental remediation, product liability and warranty costs may change in the near future based upon new information that may arise or matters that are beyond the scope of its historical experience. Presently, there are no reliable methods to estimate the amount of any such potential changes.
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.
Product Warranties
Product Warranties
Product Warranties
In the normal course of business, the Company provides its customers product warranties covering workmanship, and in some cases materials, on products manufactured by the Company. Such product 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 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 its 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 product warranties activity, excluding extended warranties discussed below, for the three months ended March 31, 2016 and for the twelve months ended December 31, 2015:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Balance at the beginning of the period
 
$
40.0

 
$
42.0

Accruals for warranties issued
 
7.7

 
24.2

Settlements made (in cash or in kind)
 
(10.0
)
 
(25.2
)
Currency translation impact
 
0.2

 
(1.0
)
Balance at the end of the period
 
37.9

 
40.0


The Company also offers extended warranties, which are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the warranty period. The deferred revenue on warranties included in other current and non-current liabilities at March 31, 2016 and December 31, 2015, was $5.6 million and $5.7 million, respectively. Removing deferred revenue from the ending balances detailed above, the total amount of product warranties at March 31, 2016 and December 31, 2015, was $32.3 million and $34.3 million, respectively.
Restructuring
Restructuring
Restructuring
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 MFS. The restructuring reserve balance as of March 31, 2016 and December 31, 2015, includes certain of these costs, including a pension withdrawal liability, which are recorded in accrued expenses and other liabilities and other long-term liabilities in the consolidated (condensed) balance sheets. The Company recorded additional amounts in 2016 primarily related to the pension withdrawal liability. The Company recorded additional amounts in 2015 primarily related to a company-wide reduction in force and the proposed closing of the Cleveland facility.
The following is a rollforward of all restructuring activities for the three months ended March 31, 2016 (in millions):
Restructuring Reserve
Balance as of
December 31, 2015
 
Restructuring
Charges
 
Use of Reserve
 
Restructuring Reserve
Balance as of
March 31, 2016
$
16.8

 
$
1.3

 
$
(1.4
)
 
$
16.7

Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
The Company maintains several different retirement plans for its operations in the United States, Europe and Asia. This footnote describes those retirement plans that are maintained for the Company's US-based employees. The current plans are based largely upon benefit plans that MTW maintained prior to the Spin-Off. MFS has established a Retirement Plan Committee to manage the operations and administration of all retirement plans and related trusts.
Defined Benefit Plans
Prior to December 31, 2015, MTW maintained two defined benefit pension plans for its eligible employees and retirees: (1) The Manitowoc Company, Inc. Pension Plan (the “MTW Pension”); and (2) The Manitowoc Company, Inc. Supplemental Executive Retirement Plan (the “MTW SERP”). The MTW Pension Plan and the MTW SERP (together, the “MTW DB Plans”) covered eligible employees of MTW, including MTW’s Cranes business and foodservice business. The MTW Pension Plan is frozen to new participants and future benefit accruals.
Effective January 1, 2016, a portion of each MTW DB Plan was spun off to create separate plans for MTW’s Foodservice business: (1) the Manitowoc Foodservice Pension Plan (the “MFS Pension Plan”); and (2) the Manitowoc Foodservice Supplemental Executive Retirement Plan (the “MFS SERP”). The MFS Pension Plan and the MFS SERP (together, the “MFS DB Plans”) were initially sponsored by Manitowoc FSG U.S. Holding, LLC. MFS assumed sponsorship of the MFS DB Pension Plans on March 4, 2016. MFS no longer participates in the MTW DB Plans. The MFS DB Plans are substantially similar to the former MTW DB Plans.
When comparing the current financial information to financial statements for prior years, it is important to distinguish between: (1) the defined benefit plan that also covered employees of MTW and other MTW subsidiaries (the “Shared Plans”); and (2) the defined benefit plans which are sponsored directly by MFS or its subsidiaries and offered only to MFS employees or retirees (the “Direct Plans”).
MFS accounts for the Shared Plans for the purpose of the consolidated (condensed) financial statements as a multiemployer plan. Accordingly, MFS does not record an asset or liability to recognize the funded status of the Shared Plans. However, the costs associated with these Shared Plans of $0.1 million and $0.4 million for the three months ended March 31, 2016 and 2015, respectively, are reflected on the MFS consolidated (condensed) statement of operations. This expense reflects an approximation of MFS’ portion of the costs of the Shared Plans as well as costs attributable to MTW corporate employees, which have been allocated to the MFS consolidated (condensed) statement of operations based on methodology deemed reasonable by management.
During the three months ended March 31, 2016, MFS assumed certain pension obligations of $55.6 million and related plan assets of $34.1 million, and certain postretirement health obligations of $6.8 million, to newly-created single employer plans for MFS employees and certain other MTW-sponsored pension plans, as described above. This net transfer of approximately $28.3 million was treated as a non-cash transaction between the Company and MTW. The Company also assumed after-tax deferred gains of $6.1 million related to these plans, which were recorded in AOCI.

The Direct Plans are accounted for as defined benefit plans. Accordingly, the funded and unfunded position of each Direct Plan is recorded in MFS consolidated (condensed) balance sheets and the income and expenses recorded in the consolidated (condensed) statements of operations. Actuarial gains and losses that have not yet been recognized through income are recorded in accumulated other comprehensive (loss) income net of taxes until they are amortized as a component of net periodic benefit cost. The determination of benefit obligations and the recognition of expenses related to the Direct Plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets, and future compensation increases. Management develops each assumption using relevant company experience in conjunction with market-related data for each individual country in which such plans exist.
The components of periodic benefit costs for the Direct Plans for the three months ended March 31, 2016 and 2015 are as follows:
 
 
Three Months Ended March 31, 2016
(in millions)
 
Pension Plans
 
Postretirement
Health and
Other Plans
Service cost - benefits earned during the period
 
$
—

 
$
—

Interest cost of projected benefit obligations
 
2.2

 
0.1

Expected return on plan assets
 
(1.6
)
 
—

Amortization of actuarial net loss
 
0.6

 
—

Net periodic benefit costs
 
$
1.2

 
$
0.1

 
 
Three Months Ended March 31, 2015
(in millions)
 
Pension Plans
 
Postretirement
Health and
Other Plans
Service cost - benefits earned during the period
 
$
0.1

 
$
—

Interest cost of projected benefit obligations
 
1.6

 
—

Expected return on plan assets
 
(1.3
)
 
—

Amortization of actuarial net loss
 
0.3

 
—

Net periodic benefit costs
 
$
0.7

 
$
—


Defined Contribution Plans
Prior to December 31, 2015, MTW maintained three defined contribution retirement plans for its eligible employees and retirees: (1) The Manitowoc Company, Inc. 401(k) Retirement Plan (the “MTW 401(k) Retirement Plan”); (2) The Manitowoc Company, Inc. Retirement Savings Plan (the “MTW Retirement Savings Plan”); and (3) The Manitowoc Company, Inc. Deferred Compensation Plan (the “MTW Deferred Compensation Plan”).  The MTW 401(k) Retirement Plan, the MTW Retirement Savings Plan and the MTW Deferred Compensation Plan (together, the “MTW DC Plans”) covered eligible employees of MTW, including MTW’s Cranes business and foodservice business.
Effective January 1, 2016, a portion of each MTW DC Plan was spun off to create separate plans for MTW’s Foodservice business: (1) the Manitowoc Foodservice 401(k) Retirement Plan (the “MFS 401(k) Retirement Plan”); (2) the Manitowoc Foodservice Retirement Savings Plan (the “MFS Retirement Savings Plan”); and (3) the Manitowoc Foodservice Deferred Compensation Plan (the “MFS Deferred Compensation Plan”). The MFS 401(k) Retirement Plan, the MFS Retirement Savings Plan and the MFS Deferred Compensation Plan (together, the “MFS DC Plans”) were initially sponsored by Manitowoc FSG U.S. Holding, LLC. MFS assumed sponsorship of the MFS DC Pension Plans on March 4, 2016. MFS no longer participates in the MTW DC Plans. The MFS DC Plans are substantially similar to the former MTW DB Plans.
The MTW DC Plans and the MFS DC Plans result in individual participant balances that reflect a combination of amounts contributed by MTW/MFS 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.
Business Segments
Business Segments
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 MFS’ reportable segments. Management organizes the business based on geography, and has designated the regions Americas, EMEA, and APAC as reportable segments.
The accounting policies of the segments are the same as those described in the summary of accounting policies except that certain corporate level expenses were not allocated to the segments for the periods prior to the Spin-Off. These unallocated expenses are corporate overhead, stock-based compensation expense, amortization expense of intangible assets with definite lives, restructuring expense, and other non-operating expenses. MFS evaluates segment performance based upon earnings before interest, taxes and amortization (EBITA) before the aforementioned expenses. Financial information relating to the Company’s reportable segments for the three months ended March 31, 2016 and 2015 is as follows: 
 
 
Three months ended March 31,
(in millions)
 
2016
 
2015
Net sales:
 
 
 
 
Americas
 
$
263.6

 
$
293.7

EMEA
 
68.6

 
70.2

APAC
 
38.9

 
41.3

Elimination of intersegment sales
 
(45.6
)
 
(59.8
)
Total net sales
 
$
325.5

 
$
345.4

 
 
 
 
 
Earnings before interest, taxes and amortization (EBITA):
 
 
 
 
Earnings before interest and taxes (EBIT)
 
33.7

 
15.7

Amortization expense
 
7.8

 
7.8

Earnings before interest, taxes and amortization (EBITA)
 
41.5

 
23.5

 
 
 
 
 
Earnings before interest, taxes and amortization (EBITA) by segment:
 
 
 
 
Americas
 
$
46.7

 
$
28.0

EMEA
 
6.8

 
3.7

APAC
 
3.1

 
4.0

Corporate and unallocated
 
(15.1
)
 
(12.2
)
Total earnings before interest, taxes and amortization (EBITA)
 
$
41.5

 
$
23.5

 
 
 
 
 
EBITA % by segment (1) :
 
 
 
 
Americas
 
17.7
%
 
9.5
%
EMEA
 
9.9
%
 
5.3
%
APAC
 
8.0
%
 
9.7
%
(2) EBITA % in the section above is calculated by dividing the dollar amount of EBITA by net sales.
 
 
 
 
 
 
 
 
 
Net sales by geographic area (3) :
 
 
 
 
United States
 
$
212.1

 
$
235.2

Other Americas
 
23.0

 
24.1

EMEA
 
57.2

 
53.3

APAC
 
33.2

 
32.8

Total net sales by geographic area:
 
$
325.5

 
$
345.4

(3) Net sales in the section above are attributed to geographic regions based on location of customer.

As of March 31, 2016 and December 31, 2015, total assets by segment were as follows:
(in millions)
 
March 31, 2016
 
December 31, 2015
Total assets by segment:
 
 
 
 
Americas
 
$
1,442.8

 
$
1,495.2

EMEA
 
170.0

 
148.5

APAC
 
143.9

 
96.5

Corporate
 
66.2

 
13.8

Total
 
$
1,822.9

 
$
1,754.0

Earnings Per Share
Earnings Per Share
Earnings Per Share
On March 4, 2016, MTW distributed 137.0 million shares of MFS common stock to MTW shareholders, thereby completing the Spin-Off. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of MFS shares outstanding immediately following this transaction. The same number of shares were used to calculate basic and diluted earnings per share, for the prior period presented, since no equity awards were outstanding prior to the Spin-Off.
The following is a reconciliation of the average shares outstanding used to compute basic and diluted earnings per share.
 
Three Months Ended
March 31,
 
2016
 
2015
Basic weighted average common shares outstanding
137,016,712

 
137,016,712

Effect of dilutive securities
1,547,587

 
—

Diluted weighted average common shares outstanding
138,564,299

 
137,016,712


For the three months ended March 31, 2016, 4.0 million of common shares issuable upon the exercise of stock options were anti-dilutive and were excluded from the calculation of diluted shares.
On March 3, 2016, prior to the completion of the Spin-Off, MFS paid a one-time cash dividend to MTW of approximately $1.362 billion. MFS did not declare or pay any other dividends to its stockholders during the three months ended March 31, 2016 or the three months ended March 31, 2015.
Description of the Business and Basis of Presentation (Policies)
Basis of Presentation 
The accompanying unaudited consolidated (condensed) financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), and include the accounts of MFS and its subsidiaries. All intercompany balances and transactions related to MFS and its affiliates have been eliminated.
During the periods presented prior to the Spin-Off on March 4, 2016, the Company's financial statements were prepared on a combined standalone basis derived from the consolidated financial statements and accounting records of MTW. MFS functioned as part of the larger group of companies controlled by MTW. Accordingly, MTW performed certain corporate overhead functions for MFS. Therefore, certain costs related to MFS have been allocated from MTW for the portion of the three months ended March 31, 2016 up to the Spin-Off on March 4, 2016 and for the entirety of the three months ended March 31, 2015. These allocated costs are primarily related to: 1) corporate officers, 2) employee benefits and compensation, 3) share-based compensation, and 4) certain administrative functions, which are not provided at the business level including, but not limited to, finance, treasury, tax, audit, legal, information technology, human resources, and investor relations. Where possible, these costs were allocated based on direct usage, with the remainder allocated on a basis of revenue, headcount, or other measures the Company determined as reasonable.
Management of the Company believes the assumptions underlying the unaudited consolidated (condensed) financial statements, including the assumptions regarding the allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by the Company during the periods presented. Nevertheless, the accompanying unaudited consolidated (condensed) financial statements may not be indicative of the Company's future performance, and do not necessarily include all of the actual expenses that would have been incurred by the Company and may not reflect the results of operations, financial position, and cash flows had the Company been a standalone company during the entirety of the periods presented.
Recent Accounting Changes and Pronouncements 
On March 30, 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, “Stock Compensation (Topic 718)” which simplifies several aspects of the accounting for share-based payment award transactions. This ASU requires that all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit on the income statement. The excess tax items should be classified with other income tax cash flows as an operating activity. This ASU also allows an entity to account for forfeitures when they occur rather than the current U.S. GAAP practice where an entity makes an entity-wide accounting policy election to estimate the number of awards that are expected to vest. This ASU is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.
On February 25, 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. ASU 2016-02 requires a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and provides certain practical expedients that companies may elect. This ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements.
In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU provides guidance for the recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for annual and interim periods beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
In November 2015, the FASB issued ASU No. 2015-17, "Balance Sheet Classification of Deferred Taxes (Subtopic 740-10)." ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the requirement for companies to present deferred tax liabilities and assets as current and non-current on the balance sheet. Instead, companies will be required to classify all deferred tax assets and liabilities as non-current. This guidance is effective for annual and interim periods beginning after December 15, 2016 and early adoption is permitted. The Company early adopted this ASU on a prospective basis as of December 31, 2015. Prior periods were not retrospectively adjusted.
In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments." The amendments in this ASU require that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, rather than as retrospective adjustments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this ASU should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not been issued. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated (condensed) financial statements.
In August 2015, the FASB issued ASU No. 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." This ASU clarifies the guidance related to accounting for debt issuance costs related to line-of-credit arrangements. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. With the issuance of ASU 2015-15, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted this accounting guidance in the first quarter of fiscal year 2016 and its impact is presented in the consolidated (condensed) financial statements.

In July 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This ASU changes the guidance on accounting for inventory accounted for on a first-in first-out basis (FIFO). Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out basis (LIFO). The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements.
In April 2015, the FASB issued ASU No. 2015-05, "Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification ("ASC") Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.
In February 2015, the FASB issued ASU No. 2015-02, “"Consolidation (Topic 820)—Amendments to the Consolidation Analysis." This ASU amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.
In January 2015, the FASB issued ASU No. 2015-01, "Income Statement—Extraordinary and Unusual Items." This update eliminates from U.S. GAAP the concept of extraordinary items. This ASU is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements.
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern." This update provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective in the first annual period ending after December 15, 2016, with early adoption permitted. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements.
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." This ASU provides a principles-based approach to revenue recognition to record the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contact, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. The revenue standard is effective for the first interim period within fiscal years beginning after December 15, 2017 (as finalized by the FASB in August 2015 in ASU 2015-14), and can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application along with additional disclosures. Early adoption is permitted as of the original effective date—the first interim period within fiscal years beginning after December 15, 2016. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements.
Fair Value of Financial Instruments (Tables)
Financial assets and liabilities accounted for at fair value on a recurring basis by level within the fair value hierarchy
The following tables set forth financial assets and liabilities which were attributable to the Company and were accounted for at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
 
Fair Value as of March 31, 2016
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$
—

 
$
—

 
$
—

 
$
—

Total current assets at fair value
 
$
—

 
$
—

 
$
—

 
$
—

Total assets at fair value
 
$
—

 
$
—

 
$
—

 
$
—

Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$
—

 
$
0.1

 
$
—

 
$
0.1

Commodity contracts
 
—

 
1.5

 
—

 
1.5

Total current liabilities at fair value
 
$
—

 
$
1.6

 
$
—

 
$
1.6

Non-current Liabilities:
 
 

 
 

 
 

 
 

Commodity contracts
 
$
—

 
$
0.1

 
$
—

 
$
0.1

Total non-current liabilities at fair value
 
$
—

 
$
0.1

 
$
—

 
$
0.1

Total liabilities at fair value
 
$
—

 
$
1.7

 
$
—

 
$
1.7

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

 
 

 
 

 
 

Foreign currency exchange contracts
 
$
—

 
$
—

 
$
—

 
$
—

Total current assets at fair value
 
$
—

 
$
—

 
$
—

 
$
—

Total assets at fair value
 
$
—

 
$
—

 
$
—

 
$
—

Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$
—

 
$
0.1

 
$
—

 
$
0.1

Commodity contracts
 
—

 
3.1

 
—

 
3.1

Total current liabilities at fair value
 
$
—

 
$
3.2

 
$
—

 
$
3.2

Non-current Liabilities:
 
 

 
 

 
 

 
 

Commodity contracts
 
$
—

 
$
0.4

 
$
—

 
$
0.4

Total non-current liabilities at fair value
 
$
—

 
$
0.4

 
$
—

 
$
0.4

Total liabilities at fair value
 
$
—

 
$
3.6

 
$
—

 
$
3.6

Inventories (Tables)
Components of inventories
The components of inventories at March 31, 2016 and December 31, 2015 are summarized as follows:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Inventories — gross:
 
 

 
 

Raw materials
 
$
72.5

 
$
70.7

Work-in-process
 
21.7

 
18.7

Finished goods
 
98.2

 
83.4

Total inventories — gross
 
192.4

 
172.8

Excess and obsolete inventory reserve
 
(25.4
)
 
(23.5
)
Net inventories at FIFO cost
 
167.0

 
149.3

Excess of FIFO costs over LIFO value
 
(3.4
)
 
(3.4
)
Inventories — net
 
$
163.6

 
$
145.9

Property, Plant and Equipment (Tables)
Components of property, plant and equipment
The components of property, plant and equipment at March 31, 2016 and December 31, 2015 are summarized as follows:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Land
 
$
7.3

 
$
7.3

Building and improvements
 
94.9

 
94.3

Machinery, equipment and tooling
 
214.2

 
216.0

Furniture and fixtures
 
6.2

 
6.2

Computer hardware and software
 
52.5

 
51.2

Construction in progress
 
12.0

 
9.8

Total cost
 
387.1

 
384.8

Less accumulated depreciation
 
(270.8
)
 
(268.4
)
Property, plant and equipment - net
 
$
116.3

 
$
116.4

Goodwill and Other Intangible Assets (Tables)
Changes in goodwill by reportable segment 
The changes in the carrying amount of goodwill by reportable segment for three months ended March 31, 2016, were as follows:
(in millions)
 
Americas
 
EMEA
 
APAC
 
Total
Balance as of December 31, 2015
 
$
832.6

 
$
4.8

 
$
8.4

 
$
845.8

Foreign currency impact
 
—

 
0.2

 
0.2

 
0.4

Balance as of March 31, 2016
 
$
832.6

 
$
5.0

 
$
8.6

 
$
846.2

Gross carrying amount and accumulated amortization of the company's intangible assets other than goodwill 
The gross carrying amount and accumulated amortization of MFS’ intangible assets other than goodwill are as follows as of March 31, 2016 and December 31, 2015:
 
 
March 31, 2016
 
December 31, 2015
(in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
Trademarks and tradenames
 
$
176.3

 
$
—

 
$
176.3

 
$
175.1

 
$
—

 
$
175.1

Customer relationships
 
415.3

 
(155.7
)
 
259.6

 
415.2

 
(150.4
)
 
264.8

Patents
 
1.7

 
(1.7
)
 
—

 
1.7

 
(1.6
)
 
0.1

Other intangibles
 
144.2

 
(66.6
)
 
77.6

 
143.2

 
(63.6
)
 
79.6

Total
 
$
737.5

 
$
(224.0
)
 
$
513.5

 
$
735.2

 
$
(215.6
)
 
$
519.6

Accounts Payable and Accrued Expenses and Other Liabilities(Tables)
Schedule of accounts payable and accrued expenses
Accounts payable and Accrued expenses and other liabilities at March 31, 2016 and December 31, 2015 are summarized as follows:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Accounts payable:
 
 
 
 
Trade accounts payable and interest payable
 
$
114.5

 
$
121.7

Income taxes payable
 
7.8

 
7.3

Total accounts payable
 
$
122.3

 
$
129.0

Accrued expenses and other liabilities:
 
 
 
 
Employee related expenses
 
$
31.3

 
$
24.5

Restructuring expenses
 
5.1

 
16.8

Profit sharing and incentives
 
6.6

 
3.9

Accrued rebates
 
39.1

 
51.6

Deferred revenue - current
 
3.8

 
3.8

Dividend payable to MTW
 
—

 
10.2

Customer advances
 
5.4

 
2.9

Product liability
 
2.8

 
2.6

Miscellaneous accrued expenses
 
44.6

 
41.3

Total accrued expenses and other liabilities
 
$
138.7

 
$
157.6

Debt (Tables)
Schedule of outstanding debt 
Outstanding debt at March 31, 2016 and December 31, 2015 is summarized as follows:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Revolving credit facility
 
$
31.2

 
$
—

Term Loan B
 
975.0

 
—

Senior Notes due 2024
 
425.0

 
—

Other
 
17.4

 
2.7

Total debt and capital leases including current portion
 
1,448.6

 
2.7

Less current portion and short-term borrowings
 
(25.3
)
 
(0.4
)
Less unamortized debt issuance costs
 
(40.1
)
 
—

Total long-term debt and capital leases
 
$
1,383.2

 
$
2.3

Summary of covenant levels of financial covenants 
The current covenant levels of the financial covenants under the Senior Secured Credit Facility are as set forth below:
Fiscal Quarter Ending
Consolidated Total Leverage Ratio (less than)
Consolidated Interest Coverage Ratio (greater than)
March 31, 2016
6.25:1.00
2.00:1.00
Schedule of percentage of principal amount at which the entity may redeem the notes 
In addition, the Company may redeem the notes at its option, in whole or in part, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the 12-month period commencing on February 15 of the years set forth below:
Year
Percentage

2019
107.1
%
2020
104.8
%
2021
102.4
%
2022 and thereafter
100.0
%
Equity (Tables)
Stockholders Equity Rollforward 
The following is a roll forward of stockholders’ equity and net parent investment for the three months ended March 31, 2016 and 2015:
(Dollars in millions, shares in thousands)
Shares
Common Stock
Additional Paid-In Capital
Retained Earnings
Net Parent Company Investment
Accumulated Other Comprehensive (Loss) Income
Total Equity
Balance at December 31, 2015
—

$
—

$
—

$
—

$
1,253.2

$
(44.5
)
$
1,208.7

Net earnings
—

—

—

2.8

15.3

—

18.1

Net transfers to MTW
—

—

—

—

(1,362.0
)
—

(1,362.0
)
Separation related adjustments
—

—

—

—

(1.0
)
(47.4
)
(48.4
)
Reclassification of net investment to additional paid-in capital
—

—

(94.5
)
—

94.5

—

—

Issuance of common stock at Spin-off
137,016.7

1.4

(1.4
)
—

—

—

—

Stock-based compensation expense

—

—

1.3

—

—

—

1.3

Activity under stock plans
—

—

—

—

—

—

—

Dividends to shareholders
—

—

—

—

—

—

—

Other comprehensive income (loss)
—

—

—

—

—

56.6

56.6

Balance at March 31, 2016
137.0

$
1.4

$
(94.6
)
$
2.8

$
—

$
(35.3
)
$
(125.7
)
(Dollars in millions, shares in thousands)
Shares
Common Stock
Additional Paid-In Capital
Retained Earnings
Net Parent Company Investment
Accumulated Other Comprehensive (Loss) Income
Total Equity
Balance at December 31, 2014
—

$
—

$
—

$
—

$
1,272.1

$
(20.7
)
$
1,251.4

Net earnings
—

—

—

—

14.0

—

14.0

Other comprehensive income (loss)
—

—

—

—

—

(11.1
)
(11.1
)
Net increase in net parent company investment
—

—

—

—

23.0

—

23.0

Balance at March 31, 2015
—

$
—

$
—

$
—

$
1,309.1

$
(31.8
)
$
1,277.3

Reconciliations for the changes in accumulated other comprehensive income (loss) 
Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the three months ended March 31, 2016 and 2015 are as follows:
(in millions)
 
Foreign Currency Translation
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2015
 
$
(7.9
)
 
$
(1.8
)
 
$
(34.8
)
 
$
(44.5
)
Other comprehensive income (loss) before reclassifications
 
17.2

 
0.3

 
(9.4
)
 
8.1

Amounts reclassified from accumulated other comprehensive income (loss)
 
—

 
0.6

 
0.5

 
1.1

Net current period other comprehensive income (loss)
 
17.2

 
0.9

 
(8.9
)
 
9.2

Balance at March 31, 2016
 
$
9.3

 
$
(0.9
)
 
$
(43.7
)
 
$
(35.3
)
(in millions)
 
Foreign Currency Translation
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2014
 
$
17.3

 
$
(1.0
)
 
$
(37.0
)
 
$
(20.7
)
Other comprehensive income (loss) before reclassifications
 
(11.1
)
 
(2.4
)
 
1.4

 
(12.1
)
Amounts reclassified from accumulated other comprehensive income (loss)
 
—

 
0.7

 
0.3

 
1.0

Net current period other comprehensive income (loss)
 
(11.1
)
 
(1.7
)
 
1.7

 
(11.1
)
Balance at March 31, 2015
 
$
6.2

 
$
(2.7
)
 
$
(35.3
)
 
$
(31.8
)

Reclassification out of accumulated other comprehensive income 
The following is a reconciliation of the reclassifications out of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2016:
 
 
Three Months Ended March 31, 2016
 
 
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
Foreign exchange contracts
 
$
(0.1
)
 
Cost of sales
Commodity contracts
 
(0.9
)
 
Cost of sales
 
 
(1.0
)
 
Total before tax
 
 
0.4

 
Tax expense
 
 
$
(0.6
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
Actuarial losses
 
(0.6
)
(a)
 
 
 
(0.6
)
 
Total before tax
 
 
0.1

 
Tax benefit
 
 
$
(0.5
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period, net of tax
 
$
(1.1
)
 
 
 
 
 
 
 
(a) These other comprehensive income components are included in the net periodic pension cost (see Note 16, “Employee Benefit Plans,” for further details).

The following is a reconciliation of the reclassifications out of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2015:
 
 
Three Months Ended March 31, 2015
 
 
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
Foreign exchange contracts
 
$
(0.5
)
 
Cost of sales
Commodity contracts
 
(0.6
)
 
Cost of sales
 
 
(1.1
)
 
Total before tax
 
 
0.4

 
Tax expense
 
 
$
(0.7
)
 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
Actuarial losses
 
(0.3
)
(a)
 
 
 
(0.3
)
 
Total before tax
 
 
—

 
Tax benefit
 
 
$
(0.3
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period, net of tax
 
$
(1.0
)
 
 
 
 
 
 
 
(a) These other comprehensive income (loss) components are included in the net periodic pension cost (see Note 16, “Employee Benefit Plans,” for further details).
Product Warranties (Tables)
Schedule of the changes in warranty liability
Below is a table summarizing the product warranties activity, excluding extended warranties discussed below, for the three months ended March 31, 2016 and for the twelve months ended December 31, 2015:
 
 
March 31,
 
December 31,
(in millions)
 
2016
 
2015
Balance at the beginning of the period
 
$
40.0

 
$
42.0

Accruals for warranties issued
 
7.7

 
24.2

Settlements made (in cash or in kind)
 
(10.0
)
 
(25.2
)
Currency translation impact
 
0.2

 
(1.0
)
Balance at the end of the period
 
37.9

 
40.0

Restructuring (Tables)
Rollforward of all restructuring activities
The following is a rollforward of all restructuring activities for the three months ended March 31, 2016 (in millions):
Restructuring Reserve
Balance as of
December 31, 2015
 
Restructuring
Charges
 
Use of Reserve
 
Restructuring Reserve
Balance as of
March 31, 2016
$
16.8

 
$
1.3

 
$
(1.4
)
 
$
16.7

Employee Benefit Plans (Tables)
Schedule of components of period benefit costs
The components of periodic benefit costs for the Direct Plans for the three months ended March 31, 2016 and 2015 are as follows:
 
 
Three Months Ended March 31, 2016
(in millions)
 
Pension Plans
 
Postretirement
Health and
Other Plans
Service cost - benefits earned during the period
 
$
—

 
$
—

Interest cost of projected benefit obligations
 
2.2

 
0.1

Expected return on plan assets
 
(1.6
)
 
—

Amortization of actuarial net loss
 
0.6

 
—

Net periodic benefit costs
 
$
1.2

 
$
0.1

 
 
Three Months Ended March 31, 2015
(in millions)
 
Pension Plans
 
Postretirement
Health and
Other Plans
Service cost - benefits earned during the period
 
$
0.1

 
$
—

Interest cost of projected benefit obligations
 
1.6

 
—

Expected return on plan assets
 
(1.3
)
 
—

Amortization of actuarial net loss
 
0.3

 
—

Net periodic benefit costs
 
$
0.7

 
$
—

Business Segments (Tables)
Schedule of net sales from continuing operations and long-lived asset information by geographic area
Financial information relating to the Company’s reportable segments for the three months ended March 31, 2016 and 2015 is as follows: 
 
 
Three months ended March 31,
(in millions)
 
2016
 
2015
Net sales:
 
 
 
 
Americas
 
$
263.6

 
$
293.7

EMEA
 
68.6

 
70.2

APAC
 
38.9

 
41.3

Elimination of intersegment sales
 
(45.6
)
 
(59.8
)
Total net sales
 
$
325.5

 
$
345.4

 
 
 
 
 
Earnings before interest, taxes and amortization (EBITA):
 
 
 
 
Earnings before interest and taxes (EBIT)
 
33.7

 
15.7

Amortization expense
 
7.8

 
7.8

Earnings before interest, taxes and amortization (EBITA)
 
41.5

 
23.5

 
 
 
 
 
Earnings before interest, taxes and amortization (EBITA) by segment:
 
 
 
 
Americas
 
$
46.7

 
$
28.0

EMEA
 
6.8

 
3.7

APAC
 
3.1

 
4.0

Corporate and unallocated
 
(15.1
)
 
(12.2
)
Total earnings before interest, taxes and amortization (EBITA)
 
$
41.5

 
$
23.5

 
 
 
 
 
EBITA % by segment (1) :
 
 
 
 
Americas
 
17.7
%
 
9.5
%
EMEA
 
9.9
%
 
5.3
%
APAC
 
8.0
%
 
9.7
%
(2) EBITA % in the section above is calculated by dividing the dollar amount of EBITA by net sales.
 
 
 
 
 
 
 
 
 
Net sales by geographic area (3) :
 
 
 
 
United States
 
$
212.1

 
$
235.2

Other Americas
 
23.0

 
24.1

EMEA
 
57.2

 
53.3

APAC
 
33.2

 
32.8

Total net sales by geographic area:
 
$
325.5

 
$
345.4

(3) Net sales in the section above are attributed to geographic regions based on location of customer.

As of March 31, 2016 and December 31, 2015, total assets by segment were as follows:
(in millions)
 
March 31, 2016
 
December 31, 2015
Total assets by segment:
 
 
 
 
Americas
 
$
1,442.8

 
$
1,495.2

EMEA
 
170.0

 
148.5

APAC
 
143.9

 
96.5

Corporate
 
66.2

 
13.8

Total
 
$
1,822.9

 
$
1,754.0

Earnings Per Share (Tables)
Reconciliation of the average shares outstanding used to compute basic and diluted earnings per share
The following is a reconciliation of the average shares outstanding used to compute basic and diluted earnings per share.
 
Three Months Ended
March 31,
 
2016
 
2015
Basic weighted average common shares outstanding
137,016,712

 
137,016,712

Effect of dilutive securities
1,547,587

 
—

Diluted weighted average common shares outstanding
138,564,299

 
137,016,712

Description of the Business and Basis of Presentation (Details)
Jan. 29, 2015
Business
Company
Accounting Policies [Abstract]
 
Number of independent public companies
2 
Number of independent businesses
2 
Fair Value of Financial Instruments - Financial assets and liabilities accounted for at fair value on a recurring basis by level within the fair value hierarchy (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current liabilities at fair value
$ 318.6 
$ 321.3 
Fair value measurement on recurring basis
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0 
0 
Total assets at fair value
0 
0 
Total current liabilities at fair value
1.6 
 
Total current liabilities at fair value
 
3.2 
Total non-current liabilities at fair value
0.1 
0.4 
Total liabilities at fair value
1.7 
3.6 
Fair value measurement on recurring basis |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0 
0 
Total current liabilities at fair value
0.1 
0.1 
Fair value measurement on recurring basis |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current liabilities at fair value
1.5 
3.1 
Total non-current liabilities at fair value
0.1 
0.4 
Fair value measurement on recurring basis |
Level 1
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0 
0 
Total assets at fair value
0 
0 
Total current liabilities at fair value
0 
 
Total current liabilities at fair value
 
0 
Total non-current liabilities at fair value
0 
0 
Total liabilities at fair value
0 
0 
Fair value measurement on recurring basis |
Level 1 |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0 
0 
Total current liabilities at fair value
0 
0 
Fair value measurement on recurring basis |
Level 1 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current liabilities at fair value
0 
0 
Total non-current liabilities at fair value
0 
0 
Fair value measurement on recurring basis |
Level 2
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0 
0 
Total assets at fair value
0 
0 
Total current liabilities at fair value
1.6 
 
Total current liabilities at fair value
 
3.2 
Total non-current liabilities at fair value
0.1 
0.4 
Total liabilities at fair value
1.7 
3.6 
Fair value measurement on recurring basis |
Level 2 |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0 
0 
Total current liabilities at fair value
0.1 
0.1 
Fair value measurement on recurring basis |
Level 2 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current liabilities at fair value
1.5 
3.1 
Total non-current liabilities at fair value
0.1 
0.4 
Fair value measurement on recurring basis |
Level 3
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0 
0 
Total assets at fair value
0 
0 
Total current liabilities at fair value
0 
 
Total current liabilities at fair value
 
0 
Total non-current liabilities at fair value
0 
0 
Total liabilities at fair value
0 
0 
Fair value measurement on recurring basis |
Level 3 |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0 
0 
Total current liabilities at fair value
0 
0 
Fair value measurement on recurring basis |
Level 3 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current liabilities at fair value
0 
0 
Total non-current liabilities at fair value
$ 0 
$ 0 
Fair Value of Financial Instruments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Senior Notes due 2024 |
Senior Notes
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
Interest rate, stated percentage (as a percent)
9.50% 
Debt instruments at fair value
$ 460.3 
Term loan B |
Senior Secured
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
Debt instruments at fair value
$ 976.2 
Derivative Financial Instruments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
Estimated amount of unrealized gains, net of tax, related to interest rate, commodity price and currency rate hedging that will be reclassified from other comprehensive income into earnings
$ 0.8 
Hedge period, low end of the range (in months)
12 months 
Hedge period, high end of the range (in months)
24 months 
Inventories (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Inventories — gross:
 
 
Raw materials
$ 72.5 
$ 70.7 
Work-in-process
21.7 
18.7 
Finished goods
98.2 
83.4 
Total inventories — gross
192.4 
172.8 
Excess and obsolete inventory reserve
(25.4)
(23.5)
Net inventories at FIFO cost
167.0 
149.3 
Excess of FIFO costs over LIFO value
(3.4)
(3.4)
Inventories — net
$ 163.6 
$ 145.9 
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Property, Plant and Equipment
 
 
Total cost
$ 387.1 
$ 384.8 
Less accumulated depreciation
(270.8)
(268.4)
Property, plant and equipment-net
116.3 
116.4 
Land
 
 
Property, Plant and Equipment
 
 
Total cost
7.3 
7.3 
Building and improvements
 
 
Property, Plant and Equipment
 
 
Total cost
94.9 
94.3 
Machinery, equipment and tooling
 
 
Property, Plant and Equipment
 
 
Total cost
214.2 
216.0 
Furniture and fixtures
 
 
Property, Plant and Equipment
 
 
Total cost
6.2 
6.2 
Computer hardware and software
 
 
Property, Plant and Equipment
 
 
Total cost
52.5 
51.2 
Construction in progress
 
 
Property, Plant and Equipment
 
 
Total cost
$ 12.0 
$ 9.8 
Goodwill and Other Intangible Assets - Narrative (Details) (USD $)
3 Months Ended 6 Months Ended
Mar. 31, 2016
segment
Mar. 31, 2015
Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Number of reportable segments
3 
 
 
Impairment of intangible assets
 
 
$ 0 
Amortization of intangible assets
$ 7,800,000 
$ 7,800,000 
 
Goodwill and Other Intangible Assets - Changes in goodwill by reportable segment (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Goodwill [Roll Forward]
 
Goodwill beginning of period
$ 845.8 
Foreign currency impact
0.4 
Goodwill end of period
846.2 
Americas
 
Goodwill [Roll Forward]
 
Goodwill beginning of period
832.6 
Foreign currency impact
0 
Goodwill end of period
832.6 
EMEA
 
Goodwill [Roll Forward]
 
Goodwill beginning of period
4.8 
Foreign currency impact
0.2 
Goodwill end of period
5.0 
APAC
 
Goodwill [Roll Forward]
 
Goodwill beginning of period
8.4 
Foreign currency impact
0.2 
Goodwill end of period
$ 8.6 
Goodwill and Other Intangible Assets - Gross carrying amount and accumulated amortization of the company's intangible assets other than goodwill (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Estimated useful lives of other intangible assets
 
 
Gross Carrying Amount
$ 737.5 
$ 735.2 
Accumulated Amortization Amount
(224.0)
(215.6)
Net Book Value
513.5 
519.6 
Trademarks and tradenames
 
 
Estimated useful lives of other intangible assets
 
 
Gross Carrying Amount
176.3 
175.1 
Accumulated Amortization Amount
0 
 
Net Book Value
176.3 
175.1 
Customer relationships
 
 
Estimated useful lives of other intangible assets
 
 
Gross Carrying Amount
415.3 
415.2 
Accumulated Amortization Amount
(155.7)
(150.4)
Net Book Value
259.6 
264.8 
Patents
 
 
Estimated useful lives of other intangible assets
 
 
Gross Carrying Amount
1.7 
1.7 
Accumulated Amortization Amount
(1.7)
(1.6)
Net Book Value
0 
0.1 
Other intangibles
 
 
Estimated useful lives of other intangible assets
 
 
Gross Carrying Amount
144.2 
143.2 
Accumulated Amortization Amount
(66.6)
(63.6)
Net Book Value
$ 77.6 
$ 79.6 
Accounts Payable and Accrued Expenses and Other Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Payables and Accruals [Abstract]
 
 
Trade accounts payable and interest payable
$ 114.5 
$ 121.7 
Income taxes payable
7.8 
7.3 
Total accounts payable
122.3 
129.0 
Employee related expenses
31.3 
24.5 
Restructuring expenses
5.1 
16.8 
Profit sharing and incentives
6.6 
3.9 
Accrued rebates
39.1 
51.6 
Deferred revenue - current
3.8 
3.8 
Dividend payable to MTW
0 
10.2 
Customer advances
5.4 
2.9 
Product liability
2.8 
2.6 
Miscellaneous accrued expenses
44.6 
41.3 
Total accrued expenses and other liabilities
$ 138.7 
$ 157.6 
Accounts Receivable Securitization (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 3, 2016
Related Party Transaction [Line Items]
 
 
 
Capacity of securitization program
 
 
$ 110,000,000 
Average collection cycle for accounts receivable (less than)
60 days 
 
 
Fair value of deferred purchase price notes
67,900,000 
48,400,000 
 
Accounts receivable securitization
15,900,000 
 
 
Trade accounts receivable balance sold
79,600,000 
100,900,000 
 
MTW
 
 
 
Related Party Transaction [Line Items]
 
 
 
Number of funding entities
2 
 
 
Capacity of securitization program
$ 185,000,000.0 
 
 
Fixed spread (as a percent)
1.25% 
 
 
Debt - Schedule of outstanding debt (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2016
Revolving credit facility
Dec. 31, 2015
Revolving credit facility
Mar. 31, 2016
Term loan B
Dec. 31, 2015
Term loan B
Mar. 31, 2016
Senior Notes due 2024
Mar. 31, 2014
Senior Notes due 2024
Mar. 31, 2016
Other
Dec. 31, 2015
Other
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Total debt and capital leases including current portion
$ 1,448.6 
$ 2.7 
$ 31.2 
$ 0 
$ 975.0 
$ 0 
$ 425.0 
$ 0 
$ 17.4 
$ 2.7 
Less current portion and short-term borrowings
(25.3)
(0.4)
 
 
 
 
 
 
 
 
Less unamortized debt issuance costs
(40.1)
 
 
 
 
 
 
 
 
 
Total long-term debt and capital leases
$ 1,383.2 
$ 2.3 
 
 
 
 
 
 
 
 
Debt - Narrative (Details) (USD $)
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2016
Senior Notes and 2016 Credit Agreement
Mar. 3, 2016
Senior Notes and 2016 Credit Agreement
Mar. 31, 2016
Senior Notes due 2024
Mar. 31, 2014
Senior Notes due 2024
Mar. 31, 2016
2016 Credit Agreement
LIBOR
Mar. 31, 2016
2016 Credit Agreement
LIBOR
Minimum
Mar. 31, 2016
2016 Credit Agreement
LIBOR
Maximum
Mar. 31, 2016
2016 Credit Agreement
Alternate base rate
Mar. 31, 2016
Term loan B
Dec. 31, 2015
Term loan B
Mar. 31, 2016
Other
Dec. 31, 2015
Other
Mar. 31, 2016
Line of Credit
Revolving credit facility
2016 Credit Agreement
Mar. 3, 2016
Line of Credit
Revolving credit facility
2016 Credit Agreement
Mar. 31, 2016
Line of Credit
Revolving credit facility
2016 Credit Agreement
LIBOR
Mar. 31, 2016
Line of Credit
Revolving credit facility
2016 Credit Agreement
Prime Rate
Mar. 31, 2016
Line of Credit
Letter of Credit
2016 Credit Agreement
Mar. 31, 2016
Line of Credit
Swingline Loan
2016 Credit Agreement
Mar. 31, 2016
Senior Secured
Term loan B
Mar. 31, 2016
Senior Notes
Senior Notes due 2024
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount of debt
 
 
$ 975,000,000 
$ 1,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 425,000,000 
Long-term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
975,000,000 
425,000,000 
Line of credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
225,000,000 
225,000,000 
 
 
20,000,000 
40,000,000 
 
 
Interest rate, stated percentage (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9.50% 
Senior credit facility, amount outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31,200,000 
 
 
 
 
 
 
 
Debt outstanding
1,448,600,000 
2,700,000 
 
 
425,000,000 
0 
 
 
 
 
975,000,000 
0 
17,400,000 
2,700,000 
 
 
 
 
 
 
 
 
Spreads for LIBOR and prime borrowings
 
 
 
 
 
 
4.75% 
1.50% 
2.75% 
 
 
 
 
 
 
 
2.75% 
1.75% 
 
 
 
 
Debt instrument basis spread on variable rate, floor
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument basis spread on variable rate, fixed discount to LIBOR rate
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, redemption price (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
Price percentage on notes that are required to be offered for repurchase
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes default redemption minimum principal as percentage of principal outstanding (at least)
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
2.63% 
 
4.60% 
 
 
 
 
 
 
 
Highest daily borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34,200,000 
 
 
 
 
 
 
 
Average borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 17,900,000 
 
 
 
 
 
 
 
Consolidated total leverage ratio
5.49 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated total leverage ratio covenant
6.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated interest coverage ratio
5.91 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated interest coverage ratio covenant
2.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt - Summary of covenant levels of financial covenants (Details)
Mar. 31, 2016
Debt Disclosure [Abstract]
 
Consolidated Total Leverage Ratio (less than)
6.25 
Consolidated Interest Coverage Ratio (greater than)
2.00 
Debt - Schedule of percentage of principal amount at which the entity may redeem the notes (Details) (Senior Notes due 2024)
3 Months Ended
Mar. 31, 2016
2019
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price (as a percent)
107.10% 
2020
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price (as a percent)
104.80% 
2021
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price (as a percent)
102.40% 
2022 and thereafter
 
Debt Instrument, Redemption [Line Items]
 
Debt instrument, redemption price (as a percent)
100.00% 
Income Taxes - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
segment
Mar. 31, 2015
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Income tax provision
$ 4.6 
$ 6.5 
 
Decrease in tax provision
2.9 
 
 
Federal income tax at statutory rate
35.00% 
 
 
Number of reportable segments
3 
 
 
Unrecognized tax benefits
12.5 
 
16.6 
Unrecognized tax benefits reasonably possible to impact effective income tax rate
$ 0.7 
 
 
Equity - Narrative (Details) (USD $)
3 Months Ended 0 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Common Stock
Mar. 3, 2016
MTW
Common Stock
One-Time Cash Dividend
Mar. 4, 2016
MTW
MFS
Common Stock
Class of Stock [Line Items]
 
 
 
 
 
Shares of common stock issued (in shares)
 
 
137,016,712.000 
 
137,000,000 
Dividend paid
$ 0 
$ 0 
 
$ 1,362,000,000 
 
Equity - Stockholders Equity Rollforward (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Common Stock
Mar. 31, 2015
Common Stock
Dec. 31, 2014
Common Stock
Mar. 31, 2016
Additional Paid-In Capital
Mar. 31, 2015
Additional Paid-In Capital
Dec. 31, 2014
Additional Paid-In Capital
Mar. 31, 2016
Retained Earnings
Mar. 31, 2015
Retained Earnings
Dec. 31, 2014
Retained Earnings
Mar. 31, 2016
Net Parent Company Investment
Mar. 31, 2015
Net Parent Company Investment
Mar. 31, 2016
Accumulated Other Comprehensive (Loss) Income
Mar. 31, 2015
Accumulated Other Comprehensive (Loss) Income
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance (in shares)
 
 
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$ 1,208.7 
$ 1,251.4 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 0 
$ 1,253.2 
$ 1,272.1 
$ (44.5)
$ (20.7)
Net earnings
18.1 
14.0 
 
 
 
 
 
 
2.8 
 
 
15.3 
14.0 
 
 
Net transfers to MTW
(1,362.0)
 
 
 
 
 
 
 
 
 
 
(1,362.0)
 
 
 
Other comprehensive (loss) income
9.2 
(11.1)
 
 
 
 
 
 
 
 
 
 
 
9.2 
(11.1)
Net increase in net parent company investment
 
23.0 
 
 
 
 
 
 
 
 
 
 
23.0 
 
 
Separation related adjustments
(48.4)
 
 
 
 
 
 
 
 
 
 
(1.0)
 
(47.4)
 
Reclassification of net investment to additional paid-in capital
0 
 
 
 
 
(94.5)
 
 
 
 
 
94.5 
 
 
 
Issuance of common stock at Spin-off (shares)
 
 
137,016,712 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common stock at Spin-off
0 
 
1.4 
 
 
(1.4)
 
 
 
 
 
 
 
 
 
Stock-based compensation expense
1.3 
 
 
 
 
1.3 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income
56.6 
(11.1)
 
 
 
 
 
 
 
 
 
 
 
56.6 
 
Ending balance (in shares)
 
 
137,016,700 
0 
0 
 
 
 
 
 
 
 
 
 
 
Ending balance
$ (125.7)
$ 1,277.3 
$ 1.4 
$ 0 
$ 0 
$ (94.6)
$ 0 
$ 0 
$ 2.8 
$ 0 
$ 0 
$ 0 
$ 1,309.1 
$ (35.3)
$ (31.8)
Equity - Reconciliations for the changes in accumulated other comprehensive income (loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
Beginning balance
$ 1,208.7 
$ 1,251.4 
Total other comprehensive income (loss), net of tax
9.2 
(11.1)
Ending balance
(125.7)
1,277.3 
Foreign Currency Translation
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
Beginning balance
(7.9)
17.3 
Other comprehensive (loss) income before reclassifications
17.2 
(11.1)
Amounts reclassified from accumulated other comprehensive income (loss)
0 
0 
Total other comprehensive income (loss), net of tax
17.2 
(11.1)
Ending balance
9.3 
6.2 
Gains and Losses on Cash Flow Hedges
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
Beginning balance
(1.8)
(1.0)
Other comprehensive (loss) income before reclassifications
0.3 
(2.4)
Amounts reclassified from accumulated other comprehensive income (loss)
0.6 
0.7 
Total other comprehensive income (loss), net of tax
0.9 
(1.7)
Ending balance
(0.9)
(2.7)
Pension & Postretirement
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
Beginning balance
(34.8)
(37.0)
Other comprehensive (loss) income before reclassifications
(9.4)
1.4 
Amounts reclassified from accumulated other comprehensive income (loss)
0.5 
0.3 
Total other comprehensive income (loss), net of tax
(8.9)
1.7 
Ending balance
(43.7)
(35.3)
Accumulated Other Comprehensive (Loss) Income
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
Beginning balance
(44.5)
(20.7)
Other comprehensive (loss) income before reclassifications
8.1 
(12.1)
Amounts reclassified from accumulated other comprehensive income (loss)
1.1 
1.0 
Total other comprehensive income (loss), net of tax
9.2 
(11.1)
Ending balance
$ (35.3)
$ (31.8)
Equity - Reclassification out of accumulated other comprehensive income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Cost of sales
$ 207.9 
$ 238.8 
Total before tax
22.7 
20.5 
Income taxes
4.6 
6.5 
Net earnings
18.1 
14.0 
Reclassification out of Accumulated Other Comprehensive Income
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Total reclassifications for the period, net of tax
(1.1)
(1.0)
Gains and Losses on Cash Flow Hedges
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Total reclassifications for the period, net of tax
(0.6)
(0.7)
Gains and Losses on Cash Flow Hedges |
Reclassification out of Accumulated Other Comprehensive Income
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Total before tax
(1.0)
(1.1)
Income taxes
0.4 
0.4 
Net earnings
(0.6)
(0.7)
Pension & Postretirement
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Total reclassifications for the period, net of tax
(0.5)
(0.3)
Pension & Postretirement |
Reclassification out of Accumulated Other Comprehensive Income
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Total before tax
(0.6)
(0.3)
Tax benefit
0.1 
0 
Total reclassifications for the period, net of tax
(0.5)
(0.3)
Foreign currency exchange contracts |
Gains and Losses on Cash Flow Hedges |
Reclassification out of Accumulated Other Comprehensive Income
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Cost of sales
(0.1)
(0.5)
Commodity contracts |
Gains and Losses on Cash Flow Hedges |
Reclassification out of Accumulated Other Comprehensive Income
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
Cost of sales
$ (0.9)
$ (0.6)
Stock-Based Compensation - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 3 Months Ended
Mar. 4, 2016
Mar. 3, 2016
Mar. 31, 2016
Mar. 31, 2015
Stock-Based Compensation
 
 
 
 
Stock-based compensation expense
$ 0.5 
$ 0.3 
$ 0.8 
$ 1.0 
Separation expense
 
 
3.0 
0 
Number of share options granted during the period (in shares)
 
 
300,000 
100,000 
Restricted Stock
 
 
 
 
Stock-Based Compensation
 
 
 
 
Separation expense
 
 
$ 0.5 
 
Shares issued
 
 
300,000 
200,000 
2016 Plan
 
 
 
 
Stock-Based Compensation
 
 
 
 
Number of shares of common stock authorized under the plan (in shares)
 
 
9,800,000 
 
2016 Plan |
Stock Options
 
 
 
 
Stock-Based Compensation
 
 
 
 
Vesting period (in years)
 
 
4 years 
 
Vesting rights percentage (as a percent)
 
 
25.00% 
 
2016 Plan |
Performance shares
 
 
 
 
Stock-Based Compensation
 
 
 
 
Vesting rights percentage (as a percent)
 
 
75.00% 
 
Performance period
 
 
3 years 
 
Contingencies and Significant Estimates - Narrative (Details) (USD $)
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Product Warranty Liability [Line Items]
 
 
Accruals for environmental matters
$ 300,000 
 
Period over which product liability self-insurance retention levels have fluctuated (in years)
10 years 
 
Product liability reserves
2,800,000 
2,600,000 
Product liability reserves for actual cases
800,000 
900,000 
Product liability reserves for claims incurred but not reported
2,000,000 
1,700,000 
Product warranties
32,300,000 
34,300,000 
Minimum
 
 
Product Warranty Liability [Line Items]
 
 
Product liability self-insurance retention levels per occurrence
100,000.0 
 
Maximum
 
 
Product Warranty Liability [Line Items]
 
 
Product liability self-insurance retention levels per occurrence
$ 250,000.00 
 
Product Warranties - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Guarantees [Abstract]
 
 
Standard product warranty, low end of range (in months)
12 months 
 
Standard product warranty, high end of range (in months)
60 months 
 
Deferred revenue included in other current and non-current liabilities
$ 5.6 
$ 5.7 
Product warranties
$ 32.3 
$ 34.3 
Product Warranties - Schedule of the changes in warranty liability (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Warranty activity
 
 
Balance at beginning of period
$ 40.0 
$ 42.0 
Accruals for warranties issued during the period
7.7 
24.2 
Settlements made (in cash or in kind) during the period
(10.0)
(25.2)
Currency translation
0.2 
(1.0)
Balance at end of period
$ 37.9 
$ 40.0 
Restructuring - Rollforward of all restructuring activities (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Rollforward of all restructuring activities
 
 
Restructuring Reserve Balance, at the beginning of the period
$ 16.8 
 
Restructuring Charges
1.3 
0.7 
Use of Reserve
(1.4)
 
Restructuring Reserve Balance, at the end of the period
$ 16.7 
 
Employee Benefit Plans - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
plan
Compensation and Retirement Disclosure [Abstract]
 
 
 
Number of defined benefit pension plans
 
 
2 
Costs associated with shared plans
$ 0.1 
$ 0.4 
 
Pension obligations assumed
55.6 
 
 
Plan assets
34.1 
 
 
Post-retirement medical obligations
6.8 
 
 
Net transfer
28.3 
 
 
After-tax deferred gain on pension obligations
$ 6.1 
 
 
Number of defined contribution retirement plans
 
 
3 
Employee Benefit Plans - Schedule of components of period benefit costs (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Pension Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost - benefits earned during the period
$ 0 
$ 0.1 
Interest cost of projected benefit obligations
2.2 
1.6 
Expected return on plan assets
(1.6)
(1.3)
Amortization of actuarial net loss
0.6 
0.3 
Net periodic benefit costs
1.2 
0.7 
Postretirement Health and Other Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Service cost - benefits earned during the period
0 
0 
Interest cost of projected benefit obligations
0.1 
0 
Expected return on plan assets
0 
0 
Amortization of actuarial net loss
0 
0 
Net periodic benefit costs
$ 0.1 
$ 0 
Business Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Operating earnings (loss) from continuing operations
 
 
 
Net sales
$ 325.5 
$ 345.4 
 
Earnings before interest and taxes
33.7 
15.7 
 
Amortization expense
7.8 
7.8 
 
Earnings before interest, taxes and amortization
41.5 
23.5 
 
Assets
1,822.9 
 
1,754.0 
United States
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Net sales
212.1 
235.2 
 
Other Americas
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Net sales
23.0 
24.1 
 
EMEA
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Net sales
57.2 
53.3 
 
APAC
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Net sales
33.2 
32.8 
 
Operating Segments
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Net sales
263.6 
293.7 
 
Operating Segments |
Americas
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Earnings before interest, taxes and amortization
46.7 
28.0 
 
Long lived assets
1,442.8 
 
1,495.2 
Operating Segments |
EMEA
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Net sales
68.6 
70.2 
 
Earnings before interest, taxes and amortization
6.8 
3.7 
 
Long lived assets
170.0 
 
148.5 
Operating Segments |
APAC
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Net sales
38.9 
41.3 
 
Earnings before interest, taxes and amortization
3.1 
4.0 
 
Long lived assets
143.9 
 
96.5 
Operating Segments |
Geographic Concentration Risk |
EBITA |
Americas
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Concentration risk percentage
17.70% 
9.50% 
 
Operating Segments |
Geographic Concentration Risk |
EBITA |
EMEA
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Concentration risk percentage
9.90% 
5.30% 
 
Operating Segments |
Geographic Concentration Risk |
EBITA |
APAC
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Concentration risk percentage
8.00% 
9.70% 
 
Elimination of intersegment sales
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Net sales
(45.6)
(59.8)
 
Corporate and unallocated
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
Earnings before interest, taxes and amortization
(15.1)
(12.2)
 
Long lived assets
$ 66.2 
 
$ 13.8 
Net Parent Company Investment and Related Party Transactions - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Related Party Transaction [Line Items]
 
 
 
Interest income on notes with MTW - net
$ 0.1 
$ (4.7)
 
Net transfers to MTW
1,362.0 
0 
 
Pension obligations assumed
55.6 
 
 
Post-retirement medical obligations
6.8 
 
 
MTW
 
 
 
Related Party Transaction [Line Items]
 
 
 
General corporate expense
1.6 
7.4 
 
Interest income on notes with MTW - net
0 
4.7 
 
Interest income on notes with MTW - net
0.1 
0 
 
Notes receivable, related parties
 
 
70.8 
Notes payable, related parties
 
 
9.9 
Pension obligations assumed
21.5 
 
 
Post-retirement medical obligations
6.8 
 
 
Taxes payable
0.6 
 
 
Other comprehensive income related to pension and currency translation
$ 47.4 
 
 
Earnings Per Share - Narrative (Details) (USD $)
Share data in Millions, unless otherwise specified
3 Months Ended 0 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Mar. 31, 2016
Stock Options
Mar. 4, 2016
Common Stock
Mar. 3, 2016
MTW
Common Stock
One-Time Cash Dividend
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
 
Shares of common stock issued (in shares)
 
 
 
137.0 
 
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)
4.0 
 
3.7 
 
 
Dividend paid
$ 0 
$ 0 
 
 
$ 1,362,000,000 
Earnings Per Share - Reconciliation of the average shares outstanding used to compute basic and diluted earnings per share (Details)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Earnings Per Share [Abstract]
 
 
Basic weighted average common shares outstanding
137,016,712 
137,016,712 
Effect of dilutive securities
1,547,587 
0 
Diluted weighted average common shares outstanding
138,564,299 
137,016,712