MANITOWOC CO INC, 10-K filed on 2/20/2015
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2014
Jan. 30, 2015
Jun. 30, 2014
Document and entity information
 
 
 
Entity Registrant Name
MANITOWOC CO INC 
 
 
Entity Central Index Key
0000061986 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2014 
 
 
Amendment Flag
false 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 4,395,900,000 
Entity Common Stock, Shares Outstanding
 
135,624,916 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
Q4 
 
 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Operations
 
 
 
Net sales
$ 3,886.5 
$ 4,048.1 
$ 3,913.3 
Costs and expenses:
 
 
 
Cost of sales
2,900.4 
3,026.3 
2,970.3 
Engineering, selling and administrative expenses
641.6 
617.6 
597.6 
Asset impairment expense
1.1 
Amortization expense
35.1 
35.3 
36.5 
Restructuring expense
9.0 
4.8 
9.5 
Other expense (income)
0.5 
(0.3)
2.5 
Total costs and expenses
3,587.7 
3,683.7 
3,616.4 
Operating earnings from continuing operations
298.8 
364.4 
296.9 
Other income (expenses):
 
 
 
Interest expense
(94.0)
(128.4)
(135.6)
Amortization of deferred financing fees
(4.4)
(7.0)
(8.2)
Loss on debt extinguishment
(25.5)
(3.0)
(6.3)
Other (expense) income -net
(5.5)
(0.8)
0.1 
Total other expenses
(129.4)
(139.2)
(150.0)
Earnings from continuing operations before taxes on earnings
169.4 
225.2 
146.9 
Provision for taxes on earnings
8.6 
36.1 
38.0 
Earnings from continuing operations
160.8 
189.1 
108.9 
Discontinued operations:
 
 
 
Loss from discontinued operations, net of income taxes of $(0.3), $(1.8) and $0.2, respectively
(1.4)
(18.8)
(16.3)
Loss on sale of discontinued operations, net of income taxes of $(0.6), $4.4 and $0.0, respectively
(11.0)
(2.7)
Net earnings
148.4 
167.6 
92.6 
Less: Net earnings (loss) attributable to noncontrolling interest, net of tax
3.9 
25.8 
(9.1)
Net earnings attributable to Manitowoc
144.5 
141.8 
101.7 
Amounts attributable to the Manitowoc common shareholders:
 
 
 
Earnings from continuing operations
156.5 
154.8 
109.7 
Loss from discontinued operations, net of income taxes
(1.0)
(10.3)
(8.0)
Loss on sale of discontinued operations, net of income taxes
(11.0)
(2.7)
Net earnings attributable to Manitowoc
$ 144.5 
$ 141.8 
$ 101.7 
Basic earnings (loss) per common share:
 
 
 
Earnings from continuing operations attributable to Manitowoc common shareholders
$ 1.16 
$ 1.16 
$ 0.83 
Loss from discontinued operations attributable to Manitowoc common shareholders
$ (0.01)
$ (0.08)
$ (0.06)
Loss on sale of discontinued operations, net of income taxes
$ (0.08)
$ (0.02)
$ 0.00 
Earnings per share attributable to Manitowoc common shareholders
$ 1.07 
$ 1.07 
$ 0.77 
Diluted earnings (loss) per common share:
 
 
 
Earnings from continuing operations attributable to Manitowoc common shareholders
$ 1.14 
$ 1.14 
$ 0.82 
Loss from discontinued operations attributable to Manitowoc common shareholders
$ (0.01)
$ (0.08)
$ (0.06)
Loss on sale of discontinued operations, net of income taxes
$ (0.08)
$ (0.02)
$ 0.00 
Earnings per share attributable to Manitowoc common shareholders
$ 1.05 
$ 1.05 
$ 0.76 
Consolidated Statements of Operations (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Statement [Abstract]
 
 
 
Loss from discontinued operations, income taxes
$ (0.3)
$ (1.8)
$ 0.2 
Loss on sale of discontinued operations, income taxes
$ (0.6)
$ 4.4 
$ 0 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net earnings
$ 148.4 
$ 167.6 
$ 92.6 
Other comprehensive (loss) income, net of tax
 
 
 
Foreign currency translation adjustments
(84.0)
4.5 
8.3 
Unrealized (loss) income on derivatives, net of income taxes of $(3.8), $0.3, and $2.6, respectively
(7.3)
0.4 
5.2 
Employee pension and postretirement benefits, net of income taxes of $(13.3), $7.6, and $(0.5), respectively
(32.3)
17.6 
(18.1)
Total other comprehensive (loss) income, net of tax
(123.6)
22.5 
(4.6)
Comprehensive income
24.8 
190.1 
88.0 
Comprehensive income (loss) attributable to noncontrolling interest
3.9 
25.8 
(9.1)
Comprehensive income attributable to Manitowoc
$ 20.9 
$ 164.3 
$ 97.1 
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
Unrealized (loss) income on derivatives, net of income taxes of
$ (3.8)
$ 0.3 
$ 2.6 
Employee pension and post retirement benefits, income taxes
$ (13.3)
$ 7.6 
$ (0.5)
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Current Assets:
 
 
Cash and cash equivalents
$ 68.0 
$ 54.9 
Restricted cash
23.7 
12.8 
Accounts receivable, less allowances of $19.4 and $18.2, respectively
227.4 
255.5 
Inventories — net
644.5 
720.8 
Deferred income taxes
71.3 
89.9 
Other current assets
151.2 
113.9 
Current assets of discontinued operations
15.1 
Total current assets
1,186.1 
1,262.9 
Property, plant and equipment — net
591.0 
578.8 
Goodwill
1,198.1 
1,218.6 
Other intangible assets — net
714.7 
766.2 
Other non-current assets
126.7 
126.8 
Long-term assets of discontinued operations
23.3 
Total assets
3,816.6 
3,976.6 
Current Liabilities:
 
 
Accounts payable and accrued expenses
807.4 
935.6 
Short-term borrowings
80.3 
22.7 
Product warranties
77.7 
81.1 
Customer advances
21.3 
34.9 
Product liabilities
24.6 
25.0 
Current liabilities of discontinued operations
26.1 
Total current liabilities
1,011.3 
1,125.4 
Non-Current Liabilities:
 
 
Long-term debt
1,443.2 
1,504.1 
Long-term deferred income tax liability
186.2 
214.3 
Pension obligations
141.0 
101.5 
Postretirement health and other benefit obligations
53.1 
44.7 
Long-term deferred revenue
37.9 
37.6 
Other non-current liabilities
119.8 
164.5 
Long-term liabilities of discontinued operations
2.2 
Total non-current liabilities
1,981.2 
2,068.9 
Commitments and contingencies (Note 17)
   
   
Total Equity:
 
 
Common stock (300,000,000 shares authorized, 163,175,928 shares issued, 135,543,869 and 133,717,057 shares outstanding, respectively)
1.4 
1.4 
Additional paid-in capital
539.7 
506.0 
Accumulated other comprehensive loss
(130.5)
(6.9)
Retained earnings
486.9 
353.2 
Treasury stock, at cost (27,632,059 and 29,458,871 shares, respectively)
(73.4)
(78.2)
Total Manitowoc stockholders’ equity
824.1 
775.5 
Noncontrolling interest
6.8 
Total equity
824.1 
782.3 
Total liabilities and equity
$ 3,816.6 
$ 3,976.6 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Statement of Financial Position [Abstract]
 
 
Accounts Receivable, allowances (in dollars)
$ 19.4 
$ 18.2 
Common stock, shares authorized
300,000,000 
300,000,000 
Common stock, shares issued
163,175,928 
163,175,928 
Common stock, shares outstanding
135,543,869 
133,717,057 
Treasury stock, shares
27,632,059 
29,458,871 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Cash Flows From Operations
 
 
 
Net earnings
$ 148.4 
$ 167.6 
$ 92.6 
Adjustments to reconcile net earnings to cash provided by operating activities of continuing operations:
 
 
 
Asset impairments
1.1 
Discontinued operations, net of income taxes
1.4 
18.8 
16.3 
Depreciation
68.4 
68.5 
68.1 
Amortization of intangible assets
35.1 
35.3 
36.5 
Amortization of deferred financing fees
4.4 
7.0 
8.2 
Deferred income taxes
(6.2)
(13.4)
(8.5)
Loss on early extinguishment of debt
6.3 
3.0 
6.3 
(Gain) loss on sale of property, plant and equipment
(6.5)
3.7 
3.0 
Loss on sale of discontinued operations
11.0 
2.7 
Stock-based compensation expense and other
1.9 
14.9 
16.4 
Changes in operating assets and liabilities, excluding the effects of business acquisitions or dispositions:
 
 
 
Accounts receivable
10.3 
74.3 
(35.9)
Inventories
9.0 
(22.2)
(42.8)
Other assets
(17.3)
(22.6)
(2.6)
Accounts payable
(8.9)
(1.6)
29.3 
Accrued expenses and other liabilities
(153.0)
(1.9)
(11.6)
Net cash provided by operating activities of continuing operations
105.4 
334.1 
175.3 
Net cash used for operating activities of discontinued operations
(7.1)
(11.0)
(12.9)
Net cash provided by operating activities
98.3 
323.1 
162.4 
Cash Flows From Investing
 
 
 
Capital expenditures
(84.8)
(110.7)
(72.9)
Proceeds from sale of property, plant and equipment
12.8 
4.1 
0.8 
Restricted cash
(11.6)
(2.0)
(3.3)
Business acquisitions, net of cash acquired
(12.2)
Proceeds from sale of business
39.2 
Net cash used for investing activities of continuing operations
(83.6)
(81.6)
(75.4)
Net cash used for investing activities of discontinued operations
(0.6)
(0.1)
Net cash used for investing activities
(83.6)
(82.2)
(75.5)
Cash Flows From Financing
 
 
 
(Payments on) proceeds from revolving credit facility-net
(34.4)
34.4 
Proceeds from swap monetization
14.8 
Payments on long-term debt
(638.7)
(266.5)
(495.4)
Proceeds from long-term debt
640.3 
43.0 
383.3 
(Payments on) proceeds from notes financing - net
(0.3)
6.6 
(10.4)
Debt issuance costs
(5.2)
(1.1)
(5.7)
Dividends paid
(10.8)
(10.7)
(10.6)
Exercises of stock options including windfall tax benefits
25.9 
6.7 
6.4 
Net cash provided by (used for) financing activities of continuing operations
11.2 
(256.4)
(83.2)
Net cash used for financing activities of discontinued operations
(7.2)
Net cash provided by (used for) financing activities
4.0 
(256.4)
(83.2)
Effect of exchange rate changes on cash
(5.6)
(2.8)
1.2 
Net increase (decrease) in cash and cash equivalents
13.1 
(18.3)
4.9 
Balance at beginning of year
54.9 
73.2 
68.3 
Balance at end of year
68.0 
54.9 
73.2 
Supplemental Cash Flow Information
 
 
 
Interest paid
120.4 
134.6 
137.7 
Income taxes paid
$ 87.0 
$ 55.6 
$ 18.8 
Consolidated Statements of Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
USD ($)
Equity attributable to Manitowoc shareholders
USD ($)
Common Stock
USD ($)
Additional Paid-in Capital
USD ($)
Accumulated Other Comprehensive Income (Loss)
USD ($)
Retained Earnings
USD ($)
Treasury Stock
USD ($)
Noncontrolling Interest
USD ($)
Performance shares
Common Stock
Restricted Stock [Member]
Additional Paid-in Capital
USD ($)
Restricted Stock Units (RSUs) [Member]
Additional Paid-in Capital
USD ($)
Balance at beginning of year at Dec. 31, 2011
 
 
$ 1.4 
$ 466.6 
$ (24.8)
$ 131.0 
$ (83.2)
$ (9.9)
 
 
 
Balance (in shares) at Dec. 31, 2011
 
 
131,884,765 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Stock options exercised (in shares)
 
 
699,913 
 
 
 
 
 
 
 
 
Restricted stock issued, net (in shares)
 
 
184,800 
 
 
 
 
 
 
 
 
Performance shares issued (in shares)
 
 
 
 
 
 
 
 
 
 
Stock options exercised and issuance of other stock awards
 
 
 
2.0 
 
 
2.5 
 
 
 
 
Restricted stock expense
 
 
 
 
 
 
 
 
 
4.5 
 
Windfall tax benefit on stock options exercised
 
 
 
1.9 
 
 
 
 
 
 
 
Performance shares expense
 
 
 
 
 
 
 
 
 
 
5.2 
Stock option expense
 
 
 
6.7 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(4.6)
 
 
 
(4.6)
 
 
 
 
 
 
Net earnings
92.6 
 
 
 
 
101.7 
 
 
 
 
 
Cash dividends
 
 
 
 
 
(10.6)
 
 
 
 
 
Comprehensive income (loss) attributable to noncontrolling interest
9.1 
 
 
 
 
 
 
(9.1)
 
 
 
Balance at end of year at Dec. 31, 2012
581.3 
600.3 
1.4 
486.9 
(29.4)
222.1 
(80.7)
(19.0)
 
 
 
Balance (in shares) at Dec. 31, 2012
 
 
132,769,478 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Stock options exercised (in shares)
 
 
571,094 
 
 
 
 
 
 
 
 
Restricted stock issued, net (in shares)
 
 
31,310 
 
 
 
 
 
 
 
 
Performance shares issued (in shares)
 
 
 
 
 
 
 
 
345,175 
 
 
Stock options exercised and issuance of other stock awards
 
 
 
2.3 
 
 
2.5 
 
 
 
 
Restricted stock expense
 
 
 
 
 
 
 
 
 
2.8 
 
Windfall tax benefit on stock options exercised
 
 
 
1.9 
 
 
 
 
 
 
 
Performance shares expense
 
 
 
 
 
 
 
 
 
 
5.8 
Stock option expense
 
 
 
6.3 
 
 
 
 
 
 
 
Other comprehensive income (loss)
22.5 
 
 
 
22.5 
 
 
 
 
 
 
Net earnings
167.6 
 
 
 
 
141.8 
 
 
 
 
 
Cash dividends
 
 
 
 
 
(10.7)
 
 
 
 
 
Comprehensive income (loss) attributable to noncontrolling interest
(25.8)
 
 
 
 
 
 
25.8 
 
 
 
Balance at end of year at Dec. 31, 2013
782.3 
775.5 
1.4 
506.0 
(6.9)
353.2 
(78.2)
6.8 
 
 
 
Balance (in shares) at Dec. 31, 2013
 
 
133,717,057 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Stock options exercised (in shares)
 
 
1,726,024 
 
 
 
 
 
 
 
 
Restricted stock issued, net (in shares)
 
 
(14,390)
 
 
 
 
 
 
 
 
Performance shares issued (in shares)
 
 
 
 
 
 
 
 
115,178 
 
 
Stock options exercised and issuance of other stock awards
 
 
 
13.6 
 
 
4.8 
 
 
 
 
Restricted stock expense
 
 
 
 
 
 
 
 
 
1.0 
 
Windfall tax benefit on stock options exercised
 
 
 
7.5 
 
 
 
 
 
 
 
Performance shares expense
 
 
 
 
 
 
 
 
 
 
5.9 
Stock option expense
 
 
 
5.7 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(123.6)
 
 
 
(123.6)
 
 
 
 
 
 
Net earnings
148.4 
 
 
 
 
144.5 
 
 
 
 
 
Cash dividends
 
 
 
 
 
(10.8)
 
 
 
 
 
Comprehensive income (loss) attributable to noncontrolling interest
(3.9)
 
 
 
 
 
 
3.9 
 
 
 
Balance at end of year at Dec. 31, 2014
$ 824.1 
$ 824.1 
$ 1.4 
$ 539.7 
$ (130.5)
$ 486.9 
$ (73.4)
$ 0 
 
 
 
Balance (in shares) at Dec. 31, 2014
 
 
135,543,869 
 
 
 
 
 
 
 
 
Company and Basis of Presentation
Company and Basis of Presentation
Company and Basis of Presentation
Company The Manitowoc Company, Inc. (referred to as the company, MTW, and Manitowoc) was founded in 1902. Manitowoc is a multi-industry, capital goods manufacturer operating in two principal markets: Cranes and Related Products (Crane) and Foodservice Equipment (Foodservice). Crane is recognized as one of the world’s leading providers of engineered lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. Foodservice is one of the world’s leading innovators and manufacturers of commercial foodservice equipment serving the ice, beverage, refrigeration, food-preparation, and cooking needs of restaurants, convenience stores, hotels, healthcare, and institutional applications. The company has over a 110-year tradition of providing high-quality, customer-focused products and support services to its markets.
The company’s Crane business is a global provider of engineered lift solutions, offering one of the broadest product lines of lifting equipment in our industry.  Manitowoc designs, manufactures, markets, and supports a comprehensive line of lattice boom crawler cranes, mobile telescopic cranes, tower cranes, and boom trucks.  The company’s Crane products are principally marketed under the Manitowoc, Grove, Potain, National, Shuttlelift, and Manitowoc Crane Care brand names and are used in a wide variety of applications, including energy and utilities, petrochemical and industrial projects, infrastructure development such as road, bridge and airport construction, and commercial and high-rise residential construction.
The company’s Foodservice business is among the world’s leading designers and manufacturers of commercial foodservice equipment.  Manitowoc’s Foodservice capabilities span refrigeration, ice-making, cooking, holding, food-preparation, and beverage-dispensing technologies, and allow it to be able to equip entire commercial kitchens and serve the world’s growing demand for food prepared away from home.  The company’s Foodservice products are marketed under the following brands: Cleveland, Convotherm, Dean, Delfield, Fabristeel, Frymaster, Garland, Inducs, Koolaire, Kolpak, Kysor Panel Systems, Lincoln, Manitowoc Ice, Merco, Merrychef, Multiplex, Servend, and U.S. Range, and all are supported by Manitowoc KitchenCare.
During the fourth quarter of 2013, the company agreed to sell its 50% interest in Manitowoc Dong Yue Heavy Machinery Co., Ltd. (“Manitowoc Dong Yue” or the “joint venture”), a consolidated entity, which produces mobile and truck-mounted hydraulic cranes in China, to its joint venture partner, Tai’an Taishan Heavy Industry Investment Co., Ltd., for a nominal amount. Consequently, the joint venture has been classified as discontinued operations in the company’s financial statements. The transaction subsequently closed on January 21, 2014. See Note 4, “Discontinued Operations,” for further details of this transaction.
During the fourth quarter of 2012, the company decided to divest its warewashing equipment business, which operated under the brand name Jackson, and classified this business as discontinued operations in the company’s financial statements. On January 28, 2013, the company sold the Jackson warewashing equipment business to Hoshizaki USA Holdings, Inc. for approximately $39.2 million, including post-closing adjustments. Net proceeds were used to reduce ratably the then-outstanding balances of Term Loans A and B. The results of these operations have been classified as discontinued operations. See Note 4, “Discontinued Operations,” for further details of this transaction.
Basis of Presentation The consolidated financial statements include the accounts of The Manitowoc Company, Inc. and its wholly and majority-owned subsidiaries.  All significant intercompany balances and transactions have been eliminated.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Cash Equivalents and Restricted Cash All short-term investments purchased with an original maturity of three months or less are considered cash equivalents.  Restricted cash represents cash in escrow funds related to the security for an indemnity agreement for our casualty insurance provider as well as funds held in escrow to support certain international cash pooling programs.
Inventories Inventories are valued at the lower of cost or market value.  Approximately 84% and 87% of the company’s inventories at December 31, 2014 and 2013, respectively, were valued using the first-in, first-out (FIFO) method.  The remaining inventories were valued using the last-in, first-out (LIFO) method.  If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $36.2 million at both December 31, 2014 and 2013, respectively.  Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs.
Goodwill and Other Intangible Assets The company accounts for its goodwill and other intangible assets under the guidance of ASC Topic 350-10, “Intangibles — Goodwill and Other.” Under ASC Topic 350-10, goodwill is not amortized, but it is tested for impairment annually, or more frequently, as events dictate. See additional discussion of impairment testing under “Impairment of Long-Lived Assets,” below. The company’s other intangible assets with indefinite lives, including trademarks and tradenames and in-place distributor networks, are not amortized, but are also tested for impairment annually, or more frequently, as events dictate. The company’s other intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets are amortized straight-line over the following estimated useful lives:
 
Useful lives
Patents
10-20 years
Engineering drawings
15 years
Customer relationships
10-20 years

Property, Plant and Equipment Property, plant and equipment are stated at cost.  Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred.  Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated.  The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings.  Property, plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. 
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 15
Computer hardware and software
2 - 7

Property, plant and equipment also include cranes accounted for as operating leases.  Equipment accounted for as operating leases includes equipment leased directly to the customer and equipment for which the company has assisted in the financing arrangement whereby it has guaranteed more than insignificant residual value or made a buyback commitment.  Equipment that is leased directly to the customer is accounted for as an operating lease with the related assets capitalized and depreciated over their estimated economic life.  Equipment involved in a financing arrangement is depreciated over the life of the underlying arrangement so that the net book value at the end of the period equals the buyback amount or the residual value amount.  The amount of rental equipment included in property, plant and equipment amounted to $83.4 million and $63.1 million, net of accumulated depreciation, at December 31, 2014 and 2013, respectively.
Impairment of Long-Lived Assets The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable.  The company conducts its long-lived asset impairment analyses in accordance with ASC Topic 360-10-5.  ASC Topic 360-10-5 requires the company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and to evaluate the asset group against the sum of the undiscounted future cash flows.
For property, plant and equipment and other long-lived assets, other than goodwill and other indefinite lived intangible assets, the company performs undiscounted operating cash flow analyses to determine impairments.  If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the fair value to the net book value of the assets.  Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell.
Each year, in its second quarter, the company tests for impairment of goodwill according to a two-step approach.  In the first step, the company estimates the fair values of its reporting units using the present value of future cash flows approach, subject to a comparison for reasonableness to its market capitalization at the date of valuation.  If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any.  In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit used in the first step less the fair values of all other net tangible and intangible assets of the reporting unit.  If the carrying amount of the goodwill exceeds its implied fair market value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill.  In addition, goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value.  For other indefinite lived intangible assets, the impairment test consists of a comparison of the fair value of the intangible assets to their carrying amount.  See Note 9, “Goodwill and Other Intangible Assets,” for further details on our impairment assessments.
Warranties Estimated warranty costs are recorded in cost of sales at the time of sale of the warranted products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products.  These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience.
Environmental Liabilities The company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable.  Such accruals are adjusted as information develops or circumstances change.  Costs of long-term expenditures for environmental remediation obligations are discounted to their present value when the timing of cash flows are estimable.
Product Liabilities The company records product liability reserves for its self-insured portion of any pending or threatened product liability actions.  The reserve is based upon two estimates.  First, the company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the company’s best judgment and the advice of legal counsel.  These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the case.  Second, the company determines the amount of additional reserve required to cover incurred but not reported product liability obligations and to account for possible adverse development of the established case reserves (collectively referred to as IBNR).  This analysis is performed at least twice annually. 
Foreign Currency Translation The financial statements of the company’s non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items.  Resulting translation adjustments are recorded to Accumulated Other Comprehensive Income (AOCI) as a component of Manitowoc stockholders’ equity.
Derivative Financial Instruments and Hedging Activities The company has written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes.  The use of financial instruments for trading purposes is strictly prohibited.  The company uses financial instruments to manage the market risk from changes in foreign exchange rates, commodities and interest rates.  The company follows the guidance in accordance with ASC Topic 815-10, “Derivatives and Hedging.”  The fair values of all derivatives are recorded in the Consolidated Balance Sheets.  The change in a derivative’s fair value is recorded each period in current earnings or AOCI depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction.
During 2014, 2013 and 2012, minimal amounts were recognized in earnings due to ineffectiveness of certain commodity hedges.  The amount reported as derivative instrument fair market value adjustment in the AOCI account within the Consolidated Statements of Comprehensive Income (Loss) represents the net gain (loss) on foreign currency exchange contracts, commodity contracts, and interest rate contracts designated as cash flow hedges, net of income taxes.
Cash Flow Hedges The company selectively hedges anticipated transactions that are subject to foreign exchange exposure, commodity price exposure, or variable interest rate exposure, primarily using foreign currency exchange contracts, commodity contracts, and interest rate contracts, respectively.  These instruments are designated as cash flow hedges in accordance with ASC Topic 815-10 and are recorded in the Consolidated Balance Sheets at fair value.  The effective portion of the contracts’ gains or losses due to changes in fair value are initially recorded as a component of AOCI and are subsequently reclassified into earnings when the hedged transactions, typically sales and costs related to sales and interest expense, occur and affect earnings.  These contracts are highly effective in hedging the variability in future cash attributable to changes in currency exchange rates, commodity prices, or interest rates.
Fair Value Hedges The company periodically enters into interest rate swaps designated as a hedge of the fair value of a portion of its fixed rate debt.  These hedges effectively result in changing a portion of its fixed rate debt to variable interest rate debt.  Both the swaps and the debt are recorded in the Consolidated Balance Sheets at fair value.  The change in fair value of the swaps should exactly offset the change in fair value of the hedged debt, with no net impact to earnings.  Interest expense of the hedged debt is recorded at the variable rate in earnings.  See Note 11, “Debt” for further discussion of fair value hedges.
The company selectively hedges cash inflows and outflows that are subject to foreign currency exposure from the date of transaction to the related payment date.  The hedges for these foreign currency accounts receivable and accounts payable are recorded in the Consolidated Balance Sheets at fair value.  Gains or losses due to changes in fair value are recorded as an adjustment to earnings in the Consolidated Statements of Operations.
Stock-Based Compensation Stock-based compensation plans are described more fully in Note 16, “Stock-Based Compensation.”  The company recognizes expense for all stock-based compensation with graded vesting on a straight-line basis over the vesting period of the entire award.  The company recognized $1.0 million, $2.8 million and $4.5 million of compensation expense related to restricted stock awards during the years ended December 31, 2014, 2013 and 2012, respectively. In addition, the company recognized $5.7 million, $6.3 million and $6.7 million of compensation expense related to stock options during the years ended December 31, 2014, 2013 and 2012, respectively.  The company also recognized $5.9 million, $5.8 million, and $5.2 million of compensation expense associated with restricted stock units in 2014, 2013 and 2012, respectively.
Revenue Recognition Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered.  Shipping and handling fees are reflected in net sales and shipping and handling costs are reflected in cost of sales in the Consolidated Statements of Operations.
The company enters into transactions with customers that provide for residual value guarantees and buyback commitments on certain crane transactions.  The company records transactions which it provides significant residual value guarantees and any buyback commitments as operating leases.  Net revenues in connection with the initial transactions are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the customer’s third party financing agreement.  See Note 18, “Guarantees.”
The company also leases cranes to customers under operating lease terms.  Revenue from operating leases is recognized ratably over the term of the lease, and leased cranes are depreciated over their estimated useful lives.
Research and Development Research and development costs are charged to expense as incurred and amounted to $87.4 million, $86.4 million and $87.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.  Research and development costs include salaries, materials, contractor fees and other administrative costs. 
Income Taxes The company utilizes the liability method to recognize deferred tax assets and liabilities for the expected future income tax consequences of events that have been recognized in the company’s financial statements. Under this method, deferred tax assets and liabilities are determined based on the temporary difference between financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the company will not realize the benefit of such assets. The company evaluates its uncertain tax positions as new information becomes available. Tax benefits are recognized to the extent a position is more likely than not to be sustained upon examination by the taxing authority.
Earnings Per Share Basic earnings per share is computed by dividing net earnings attributable to Manitowoc by the weighted average number of common shares outstanding during each year or period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding is increased to include shares of restricted stock, performance shares and the number of additional shares that would have been outstanding if stock options were exercised and the proceeds from such exercise were used to acquire shares of common stock at the average market price during the year or period.
Comprehensive Income (Loss) Comprehensive income (loss) includes, in addition to net earnings, other items that are reported as direct adjustments to Manitowoc stockholders’ equity.  Currently, these items are foreign currency translation adjustments, employee postretirement benefit adjustments and the change in fair value of certain derivative instruments.
Concentration of Credit Risk Credit extended to customers through trade accounts receivable potentially subjects the company to risk.  This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas.  However, a significant amount of the company’s receivables are with distributors and contractors in the construction industry, large companies in the foodservice and beverage industry, customers servicing the U.S. steel industry, and government agencies.  The company currently does not foresee a significant credit risk associated with these individual groups of receivables, but continues to monitor the exposure, if any.

Recent accounting changes and pronouncements In January 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-01, “Income Statement—Extraordinary and Unusual Items.” This update eliminates from GAAP the concept of extraordinary items. ASU 2015-01 is effective for the first interim period within fiscal years beginning after December 15, 2015, 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 believes the adoption of this ASU will 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 provided guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective in the first annual period ending after December 15, 2016, with early adoption permitted. The 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 update provided a principles-based approach to revenue recognition, requiring revenue recognition to depict 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. The 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, 2016, 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. The company is evaluating the impact, if any, the adoption of this ASU will have on the company’s consolidated financial statements.
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the requirements for reporting discontinued operations in Accounting Standard Codification Subtopic 205-20, and requires a disposal of a component of an entity or a group of components of an entity to be reported in discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. There will also be additional disclosures required. The amendments in this ASU are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2014, with early adoption permitted. The significance of this guidance for the company is dependent on any future disposals.
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.”  This new standard generally requires the netting of unrecognized tax benefits (UTBs) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. The amendments in this ASU are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013.  The adoption of this ASU did not have a material impact on the company’s consolidated financial statements.
In March 2013, the FASB issued ASU No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” This ASU changes a parent entity’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. A parent entity is required to release any related cumulative foreign currency translation adjustment from accumulated other comprehensive income into net income in the following circumstances: (i) a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided; (ii) a partial sale of an equity method investment that is a foreign entity; (iii) a partial sale of an equity method investment that is not a foreign entity whereby the partial sale represents a complete or substantially complete liquidation of the foreign entity that held the equity method investment; and (iv) the sale of an investment in a foreign entity. The amendments in this ASU are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The adoption of this ASU did not have a material impact on the company’s consolidated financial statements.
Acquisitions
Acquisitions
Acquisitions
On October 1, 2013, the company acquired all remaining shares of Inducs, AG (“Inducs”) for a purchase price, net of cash acquired, of approximately $12.2 million.  The company previously held a minority interest in Inducs. Inducs is a leader in induction cooking technology.  Allocation of the purchase price resulted in $5.0 million of goodwill and $7.0 million of intangible assets.  The results of Inducs have been included in the Foodservice segment since the date of acquisition.
Discontinued Operations
Discontinued Operations
Discontinued Operations
During the fourth quarter of 2013, the company agreed to sell its 50% interest in Manitowoc Dong Yue, a consolidated entity, which produces mobile and truck-mounted hydraulic cranes in China, to its joint venture partner, Tai’an Taishan Heavy Industry Investment Co., Ltd., for a nominal amount. Consequently, the joint venture has been classified as discontinued operations in the company’s financial statements. The transaction subsequently closed on January 21, 2014. In connection with the sale, the company agreed to forgive all loans and accrued interest owed by Manitowoc Dong Yue to the company and its affiliates. As of December 31, 2013, loans and accrued interest owed by Manitowoc Dong Yue to the company and its affiliates amounted to $71.3 million and the forgiveness resulted in income of $35.6 million to the joint venture partner shown as part of net income attributable to noncontrolling interest, net of income taxes, which effectively reduced net earnings attributable to Manitowoc shareholders for the year ended December 31, 2013.
In addition, assets and liabilities classified as held for sale for Manitowoc Dong Yue were required to be recorded at the lower of carrying value or fair value less any costs to sell, which resulted in an impairment charge of approximately $1.2 million relating to the Manitowoc Dong Yue trademark intangible asset of which $0.6 million impacted net earnings attributable to Manitowoc shareholders. The impairment charge is included within loss from discontinued operations, net of income taxes, in the consolidated statement of operations for the year ended December 31, 2013.
Upon closing of the transaction in the first quarter of 2014, the company also paid an additional $7.2 million to Manitowoc Dong Yue for a portion of debt the joint venture had outstanding with third parties. After this payment, Manitowoc Dong Yue had approximately $17.3 million of third party debt outstanding under a loan agreement entered into during the first quarter of 2014 that the company has fully guaranteed. The loan is fully secured by Manitowoc Dong Yue’s fixed assets as well as finished goods inventory. Manitowoc Dong Yue will repay the loan over a four-year period, with the last payment due on December 31, 2017.
The following selected financial data of the Manitowoc Dong Yue business for the years ended December 31, 2014, 2013 and 2012 is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the business operated as a stand-alone entity.  There was no general corporate expense allocated to discontinued operations for this business during the periods presented. 
(in millions)
 
2014
 
2013
 
2012
Net sales
 
$
0.3

 
$
16.8

 
$
13.7

 
 
 
 
 
 
 
Pretax loss from discontinued operation
 
$
(0.8
)
 
$
(17.3
)
 
$
(16.6
)
Benefit for taxes on earnings
 

 
(0.3
)
 

Net loss from discontinued operation
 
$
(0.8
)
 
$
(17.0
)
 
$
(16.6
)

During the fourth quarter of 2012, the company decided to divest its warewashing equipment business, which operated under the brand name Jackson, and classified this business as discontinued operations in the company’s financial statements. On January 28, 2013, the company sold the Jackson warewashing equipment business to Hoshizaki USA Holdings, Inc. for approximately $39.2 million, including post-closing adjustments. Net proceeds were used to reduce ratably the then-outstanding balances of Term Loan A and B. The transaction resulted in a $2.7 million loss on sale, which included $4.4 million of income tax expense. The results of these operations have been classified as discontinued operations.




The following selected financial data of the Jackson business for the years ended December 31, 2014, 2013 and 2012 is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the business operated as a stand-alone entity.  There was no general corporate expense or interest expense allocated to discontinued operations for this business during the periods presented. 
(in millions)
 
2014
 
2013
 
2012
Net sales
 
$

 
$
2.5

 
$
32.6

 
 
 
 
 
 
 
Pretax earnings from discontinued operation
 
$

 
$
0.1

 
$
1.7

(Benefit) provision for taxes on earnings
 

 
(0.4
)
 
0.7

Net earnings from discontinued operation
 
$

 
$
0.5

 
$
1.0


During the third quarter of 2014, the company settled a pension obligation related to a previously disposed entity, which resulted in a $1.1 million loss on sale of discontinued operations, net of income tax benefit of $0.6 million, during the period.
The following selected financial data of various businesses disposed of prior to 2012, primarily consisting of administrative costs, for the years ended December 31, 2014, 2013 and 2012 is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the businesses operated as stand-alone entities.  There was no general corporate expense or interest expense allocated to discontinued operations for these businesses during the periods presented. 
(in millions)
 
2014
 
2013
 
2012
Net sales
 
$

 
$

 
$

 
 
 
 
 
 
 
Pretax loss from discontinued operations
 
$
(0.9
)
 
$
(3.4
)
 
$
(1.2
)
Benefit for taxes on earnings
 
(0.3
)
 
(1.1
)
 
(0.5
)
Net loss from discontinued operations
 
$
(0.6
)
 
$
(2.3
)
 
$
(0.7
)
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The following tables set forth the company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013 by level within the fair value hierarchy.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
 
Fair Value as of December 31, 2014
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current Assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
2.1

 
$

 
$
2.1

Total current assets at fair value
 
$

 
$
2.1

 
$

 
$
2.1

 
 
 
 
 
 
 
 
 
Non-Current Assets:
 
 

 
 

 
 

 
 

Interest rate swap contracts: Float-to-fixed
 
$

 
$
0.8

 
$

 
$
0.8

Total non-current assets at fair value
 
$

 
$
0.8

 
$

 
$
0.8

 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
7.9

 
$

 
$
7.9

Commodity contracts
 

 
1.0

 

 
1.0

Interest rate swap contracts: Float-to-fixed
 

 
2.3

 

 
2.3

Total current liabilities at fair value
 
$

 
$
11.2

 
$

 
$
11.2

 
 
 
 
 
 
 
 
 
Non-current Liabilities:
 
 

 
 

 
 

 
 

Commodity contracts
 

 
0.4

 

 
0.4

Interest rate swap contracts: Fixed-to-float
 

 
4.3

 

 
4.3

Total non-current liabilities at fair value
 
$

 
$
4.7

 
$

 
$
4.7

 
 
Fair Value as of December 31, 2013
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current Assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
2.9

 
$

 
$
2.9

Commodity contracts
 
$

 
$
0.2

 
$

 
$
0.2

Total current assets at fair value
 
$

 
$
3.1

 
$

 
$
3.1

 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
1.1

 
$

 
$
1.1

Commodity contracts
 

 
0.4

 

 
0.4

Total current liabilities at fair value
 
$

 
$
1.5

 
$

 
$
1.5

 
 
 
 
 
 
 
 
 
Non-current Liabilities:
 
 

 
 

 
 

 
 

Interest rate swap contracts: Fixed-to-float
 
$

 
$
14.9

 
$

 
$
14.9

Total non-current liabilities at fair value
 
$

 
$
14.9

 
$

 
$
14.9

The fair value of the company’s 2018 Notes was approximately $423.1 million as of December 31, 2013; these notes were redeemed by the company on February 18, 2014. The fair value of the company’s 2020 Notes was approximately $651.6 million and $677.6 million as of December 31, 2014 and 2013, respectively.  The fair value of the company’s 2022 Notes was approximately $309.1 million and $303.9 million as of December 31, 2014 and 2013, respectively. The fair values of the company’s term loans under its Senior Credit Facility, respectively, are as follows as of December 31, 2014 and 2013:  Term Loan A — $327.8 million and $161.9 million, respectively; and Term Loan B — $165.0 million and $0.0 million, respectively.  See Note 11, “Debt,” for a description of the debt instruments and their related carrying values.
ASC Topic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820-10 classifies the inputs used to measure fair value into the following hierarchy:
Level 1
 
Unadjusted quoted prices in active markets for identical assets or liabilities
 
 
 
Level 2
 
Unadjusted quoted prices in active markets for similar assets or liabilities, or
 
 
 
 
 
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
 
 
 
 
 
Inputs other than quoted prices that are observable for the asset or liability
 
 
 
Level 3
 
Unobservable inputs for the asset or liability
The company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The company estimates fair value of its Term Loans and Senior Notes based on quoted market prices of the instruments; because these markets are typically thinly traded, the liabilities are classified as Level 2 within the valuation hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable, deferred purchase price notes on receivables sold (see Note 12, “Accounts Receivable Securitization”) and short-term variable debt, including any amounts outstanding under our revolving credit facility, approximate fair value, without being discounted as of December 31, 2014 and December 31, 2013 due to the short-term nature of these instruments.
As a result of its global operating and financing activities, the company is exposed to market risks from changes in interest rates, foreign currency exchange rates, and commodity prices, which may adversely affect its operating results and financial position. When deemed appropriate, the company minimizes these risks through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes, and the company does not use leveraged derivative financial instruments. The foreign currency exchange, interest rate, and commodity contracts are valued through an independent valuation source which uses an industry standard data provider, with resulting valuations periodically validated through third-party or counterparty quotes. As such, these derivative instruments are classified within Level 2.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
The company’s risk management objective is to ensure that business exposures to risks that have been identified and measured and are capable of being controlled, are minimized using the most effective and efficient methods to eliminate, reduce, or transfer such exposures.  Operating decisions consider these associated risks and structure transactions to avoid these risks whenever possible.
Use of derivative instruments is consistent with the overall business and risk management objectives of the company.  Derivative instruments may be used to manage business risk within limits specified by the company’s risk policy and manage exposures that have been identified through the risk identification and measurement process, provided that they clearly qualify as “hedging” activities as defined in the risk policy.  Use of derivative instruments is not automatic, nor is it necessarily the only response to managing pertinent business risk.  Use is permitted only after the risks that have been identified are determined to exceed defined tolerance levels and are considered to be unavoidable.
The primary risks managed by the company by using derivative instruments are interest rate risk, commodity price risk and foreign currency exchange risk.  Interest rate swap or cap instruments are entered into to help manage interest rate or fair value risk.  Swap contracts on various commodities are entered into to help manage the price risk associated with forecasted purchases of materials used in the company’s manufacturing process.  The company also enters into various foreign currency derivative instruments to help manage foreign currency risk associated with the company’s projected purchases and sales and foreign currency denominated receivable and payable balances.
ASC Topic 815-10 requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the statement of financial position.  In accordance with ASC Topic 815-10, the company designates commodity swaps, foreign currency exchange contracts, and float-to-fixed interest rate derivative contracts as cash flow hedges of forecasted purchases of commodities and currencies, and variable rate interest payments.  Also in accordance with ASC Topic 815-10, the company designates fixed-to-float interest rate swaps as fair market value hedges of fixed rate debt, which synthetically swaps the company’s fixed rate debt to floating rate debt.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of Other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.  Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in current earnings.  In the next twelve months the company estimates $6.2 million of unrealized losses, net of tax, related to interest rate, commodity price and currency rate hedging will be reclassified from Other comprehensive income into earnings.  Foreign currency and commodity hedging is generally completed prospectively on a rolling basis for twelve and twenty-four months, respectively, depending on the type of risk being hedged.
The risk management objective for the company’s fair market value interest rate hedges is to effectively change the amount of the underlying debt equal to the notional value of the hedges from a fixed to a floating interest rate based on the one-month LIBOR rate.  These swaps include an embedded call feature to match the terms of the call schedule embedded in the Senior Notes. Changes in the fair value of the interest rate swap are expected to offset changes in the fair value of the debt due to changes in the one-month LIBOR rate.
As of December 31, 2014, the company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions:
Commodity
 
Units Hedged
 
 
 
Type
Aluminum
 
1,657
 
MT
 
Cash Flow
Copper
 
820
 
MT
 
Cash Flow
Natural Gas
 
347,608
 
MMBtu
 
Cash Flow
Steel
 
14,665
 
Short Tons
 
Cash Flow
Currency
 
Units Hedged
 
Type
Canadian Dollar
 
7,984,824
 
Cash Flow
European Euro
 
89,006,695
 
Cash Flow
South Korean Won
 
1,964,906,996
 
Cash Flow
Singapore Dollar
 
3,900,000
 
Cash Flow
United States Dollar
 
29,228,731
 
Cash Flow
Mexican Peso
 
52,674,387
 
Cash Flow

As of December 31, 2014 and December 31, 2013, the company had outstanding $0.0 million and $100.0 million, respectively, notional amount of 3.00% LIBOR caps related to the term loan portion of the Senior Credit Facility which effectively capped the company’s interest rate exposure for the notional value of its variable term debt at a one-month LIBOR rate of 3.00%. The company paid various bank partners $0.7 million in option premium to purchase the protection on Term Loans A and B and amortized the premium to interest expense over the life of the cap protection.  The caps expired in 2014.
As of December 31, 2014 and December 31, 2013, the company had outstanding $175.0 million and $0.0 million, respectively, notional amount of float-to-fixed interest rate swaps outstanding related to Term Loan A under the Senior Credit Facility that were designated as cash flow hedges. As a result, $175.0 million of Term Loan A was hedged at an interest rate of 1.635%, plus the applicable spread based on the Consolidated Total Leverage Ratio of the company as defined under the Senior Credit Facility.
The company has been party to various fixed-to-float interest rate swaps designated as fair market value hedges of its 2018, 2020, and 2022 Notes.  In the third quarter of 2012, the company monetized the derivative asset related to its fixed-to-float interest rate swaps related to its 2018 and 2020 Notes and received $14.8 million in the quarter. The gain was treated as an increase to the debt balances for the 2018 and 2020 notes and is being amortized against interest expense over the life of the original swap. Subsequently, the company entered into new interest rate swaps due in 2020 and 2022, designating them as fair market value hedges of the 2020 and 2022 Notes, respectively.
As of both December 31, 2014, and December 31, 2013, the company had $75.0 million and $125.0 million total notional amount of fixed-to-float interest rate swaps outstanding related to the 2020 and 2022 Notes, respectively, that were designated as fair market value hedges and swapped to floating rate interest. Including the floating rate swaps, the 2020 and 2022 Notes have an all-in interest rate of 8.31% and 5.19%, respectively.
For derivative instruments that are not designated as hedging instruments under ASC Topic 815-10, the gains or losses on the derivatives are recognized in current earnings within Other (expense) income, net in the Condensed Consolidated Statement of Operations. As of December 31, 2014, the company had the following outstanding currency forward contracts that were not designated as hedging instruments:
Currency
 
Units Hedged
 
Recognized Location
 
Purpose
European Euro
 
73,302,332
 
Other (expense) income, net
 
Accounts payable and receivable settlement
United States Dollar
 
18,244,912
 
Other (expense) income, net
 
Accounts payable and receivable settlement
Australian Dollar
 
2,482,430
 
Other (expense) income, net
 
Accounts payable and receivable settlement
Mexican Peso
 
3,151,000
 
Other (expense) income, net
 
Accounts payable and receivable settlement
Canadian Dollar
 
2,516
 
Other (expense) income, net
 
Accounts payable and receivable settlement

The fair value of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet as of December 31, 2014 was as follows:
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Interest rate swap contracts: Float-to-fixed
Other non-current assets
$
0.8

Total derivatives designated as hedging instruments
 
$
0.8

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

Foreign exchange contracts
Other current assets
$
2.1

Total derivatives NOT designated as hedging instruments
 
$
2.1

 
 
 

Total asset derivatives
 
$
2.9


The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2014 was as follows:
 
LIABILITY DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
6.6

Commodity contracts
Accounts payable and accrued expenses
1.0

Interest rate swap contracts: Float-to-fixed
Accounts payable and accrued expenses
2.3

Commodity contracts
Other non-current liabilities
0.4

Interest rate swap contracts: Fixed-to-float
Other non-current liabilities
4.3

Total derivatives designated as hedging instruments
 
$
14.6

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

Foreign exchange contracts
Accounts payable and accrued expenses
$
1.3

Total derivatives NOT designated as hedging instruments
 
$
1.3

 
 
 

Total liability derivatives
 
$
15.9




The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2014 and gains or losses initially recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet was as follows: 
Derivatives in Cash Flow Hedging
Relationships (in millions)
 
Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)
 
Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)
 
Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)
Foreign exchange contracts
 
$
(5.3
)
 
Cost of sales
 
$
(2.2
)
Commodity contracts
 
(0.8
)
 
Cost of sales
 
(0.1
)
Interest rate swap contracts: Float-to-fixed
 
(0.9
)
 
Interest expense
 
(1.8
)
Total
 
$
(7.0
)
 
 
 
$
(4.1
)

Derivatives Relationships (in millions)
Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)
Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)
Commodity contracts
Cost of sales
$
(0.1
)
Total
 
$
(0.1
)
Derivatives Not Designated as
Hedging Instruments (in millions)
Location of Gain or (Loss)
Recognized in Income on
Derivative
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Foreign exchange contracts
Other (expense) income, net
$
0.8

Total
 
$
0.8

 
Derivatives Designated as Fair
Market Value Instruments under
ASC 815 (in millions)
Location of Gain or (Loss)
Recognized in Income on
Derivative
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Interest rate swap contracts: Fixed-to-float
Interest expense
$
10.6

Total
 
$
10.6

 
As of December 31, 2013, the company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions:
Commodity
 
Units Hedged
 
 
 
Type
Aluminum
 
1,622
 
MT
 
Cash Flow
Copper
 
382
 
MT
 
Cash Flow
Natural Gas
 
214,277
 
MMBtu
 
Cash Flow
Steel
 
11,503
 
Short Tons
 
Cash Flow
Currency
 
Units Hedged
 
Type
Canadian Dollar
 
11,011,092
 
Cash Flow
European Euro
 
74,934,975
 
Cash Flow
South Korean Won
 
1,258,808,642
 
Cash Flow
Singapore Dollar
 
5,280,000
 
Cash Flow
United States Dollar
 
42,200,000
 
Cash Flow



For derivative instruments that are not designated as hedging instruments under ASC Topic 815-10, the gains or losses on the derivatives are recognized in current earnings within Other (expense) income, net. As of December 31, 2013, the company had the following outstanding currency forward contracts that were not designated as hedging instruments:
Currency
 
Units Hedged
 
Recognized Location
 
Purpose
European Euro
 
31,738,273
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
United States Dollar
 
29,091,053
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
Australian Dollar
 
1,000,000
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
Chinese Renminbi
 
125,000,000
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement

The fair value of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet as of December 31, 2013 was as follows:
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$
2.3

Commodity contracts
Other current assets
0.2

Total derivatives designated as hedging instruments
 
$
2.5

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

Foreign exchange contracts
Other current assets
$
0.6

Total derivatives NOT designated as hedging instruments
 
$
0.6

 
 
 

Total asset derivatives
 
$
3.1


The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2013 was as follows:
 
LIABILITIES DERIVATIVES
 (in millions)
Balance Sheet Location
 
Fair Value
Derivatives designated as hedging instruments
 
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
 
$
0.5

Commodity contracts
Accounts payable and accrued expenses
 
0.4

Interest rate swap contracts: Fixed-to-float
Other non-current liabilities
 
14.9

Total derivatives designated as hedging instruments
 
 
$
15.8

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

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.6

Total derivatives NOT designated as hedging instruments
 
$
0.6

 
 
 

Total liability derivatives
 
$
16.4





The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2013 and gains or losses initially recognized in OCI in the Consolidated Balance Sheet was as follows: 
Derivatives in Cash Flow Hedging
Relationships (in millions)
 
Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)
 
Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)
 
Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)
Foreign exchange contracts
 
$
(0.3
)
 
Cost of sales
 
$
3.0

Commodity contracts
 
0.4

 
Cost of sales
 
(1.6
)
Total
 
$
0.1

 
 
 
$
1.4

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

Total
 
 
 
$

Derivatives Not Designated as Hedging
Instruments (in millions)
 
Location of Gain or (Loss)
recognized in Income on
Derivative
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Foreign exchange contracts
 
Other (expense) income, net
 
$
0.2

Total
 
 
 
$
0.2


Derivatives Designated as Fair
Market Value Instruments under
ASC 815 (in millions)
Location of Gain or (Loss)
Recognized in Income on
Derivative
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Interest rate swap contracts: Fixed-to-float
Interest expense
$
(13.7
)
Total
 
$
(13.7
)
 
The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2012 and gains or losses initially recognized in OCI in the Consolidated Balance Sheet was as follows: 
Derivatives in Cash Flow Hedging
Relationships (in millions)
 
Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)
 
Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)
 
Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)
Foreign exchange contracts
 
$
4.2

 
Cost of sales
 
$
(7.3
)
Interest rate swap & cap contracts
 
(0.2
)
 
Interest expense
 
0.1

Commodity contracts
 
1.0

 
Cost of sales
 
(2.7
)
Total
 
$
5.0

 
 
 
$
(9.9
)
Derivatives Relationships (in millions)
 
Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective
Portion and Amount
Excluded from Effectiveness
Testing)
Commodity contracts
 
Cost of sales
 
$

Total
 
 
 
$

Derivatives Not Designated as Hedging
Instruments (in millions)
 
Location of Gain or (Loss)
recognized in Income on
Derivative
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Foreign exchange contracts
 
Other (expense) income, net
 
$
1.2

Interest rate swap contracts
 
Other (expense) income, net
 
$
9.3

Total
 
 
 
$
10.5

Derivatives Designated as Fair
Market Value Instruments under
ASC 815 (in millions)
 
Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective
Portion and Amount
Excluded from Effectiveness
Testing)
Interest rate swap contracts
 
Interest expense
 
$
(1.7
)
Total
 
 
 
$
(1.7
)
Inventories
Inventories
Inventories
The components of inventories at December 31, 2014 and December 31, 2013 are summarized as follows:
(in millions)
 
2014
 
2013
Inventories — gross:
 
 

 
 

Raw materials
 
$
226.2

 
$
259.0

Work-in-process
 
103.7

 
130.2

Finished goods
 
414.8

 
436.8

Total inventories — gross
 
744.7

 
826.0

Excess and obsolete inventory reserve
 
(64.0
)
 
(69.0
)
Net inventories at FIFO cost
 
680.7

 
757.0

Excess of FIFO costs over LIFO value
 
(36.2
)
 
(36.2
)
Inventories — net
 
$
644.5

 
$
720.8

Property, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment
The components of property, plant and equipment at December 31, 2014 and December 31, 2013 are summarized as follows:
(in millions)
 
2014
 
2013
Land
 
$
31.2

 
$
40.8

Building and improvements
 
344.2

 
361.2

Machinery, equipment and tooling
 
509.1

 
509.0

Furniture and fixtures
 
24.5

 
47.8

Computer hardware and software
 
169.7

 
125.8

Rental cranes
 
111.2

 
89.3

Construction in progress
 
104.2

 
102.2

Total cost
 
1,294.1

 
1,276.1

Less accumulated depreciation
 
(703.1
)
 
(697.3
)
Property, plant and equipment-net
 
$
591.0

 
$
578.8

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2014 and December 31, 2013 are as follows:
(in millions)
 
Crane
 
Foodservice
 
Total
Gross balance as of January 1, 2013
 
$
341.7

 
$
1,384.7

 
$
1,726.4

Acquisition of Inducs
 

 
5.0

 
5.0

Restructuring reserve adjustment
 

 
(0.7
)
 
(0.7
)
Foreign currency impact
 
3.4

 
0.2

 
3.6

Gross balance as of December 31, 2013
 
$
345.1

 
$
1,389.2

 
$
1,734.3

Accumulated asset impairments
 

 
(515.7
)
 
(515.7
)
Net balance as of December 31, 2013
 
$
345.1

 
$
873.5

 
$
1,218.6

Foreign currency impact
 
(19.8
)
 
(0.7
)
 
(20.5
)
Gross balance as of December 31, 2014
 
$
325.3

 
$
1,388.5

 
$
1,713.8

Accumulated asset impairments
 

 
(515.7
)
 
(515.7
)
Net balance as of December 31, 2014
 
$
325.3

 
$
872.8

 
$
1,198.1


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 review at June 30 of every year or more frequently if events or changes in circumstances indicate that the asset might be impaired. The company performs impairment reviews for its reporting units 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, 2014, the company performed its annual impairment analysis for its reporting units, which were Cranes Americas; Cranes Europe, Middle East, and Africa; Cranes China; Cranes Greater Asia Pacific; Crane Care; Foodservice Americas; Foodservice Europe, Middle East, and Africa; and Foodservice Asia, as well as its indefinite-lived intangible assets, and based on those results, no impairment was indicated.
As of September 30, 2014, the company completed its reorganization of the Cranes operating and financial consolidation structure from geographic to product line reporting. As a result of the reorganization, the company determined that for the purpose of goodwill impairment assessment it has a single reporting unit under the new structure, comprised of the Crane operating segment.
The company will continue to monitor market conditions and determine if any additional interim reviews of goodwill, other intangibles or long-lived assets are warranted. In the event the company determines that assets are impaired in the future, the company would recognize a non-cash impairment charge, which could have a material adverse effect on the company’s consolidated balance sheet and results of operations.
As discussed in Note 3, “Acquisitions,” on October 1, 2013, the company acquired all remaining shares of Inducs which the company previously held a minority interest. The aggregate purchase price of $12.2 million, net of cash, resulted in $7.0 million of identifiable intangible assets and $5.0 million of goodwill. Of the $7.0 million of acquired intangible assets, $0.7 million was assigned to trademarks that are not subject to amortization, $1.2 million was assigned to customer relationships with a useful life of 19 years, and $5.1 million was assigned to developed technology with a useful life of 12 years.





The gross carrying amount and accumulated amortization of the company’s intangible assets other than goodwill are as follows as of December 31, 2014 and December 31, 2013.
 
 
December 31, 2014
 
December 31, 2013
(in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
Trademarks and tradenames
 
$
300.0

 
$

 
$
300.0

 
$
311.8

 
$

 
$
311.8

Customer relationships
 
425.7

 
(136.0
)
 
289.7

 
426.1

 
(114.4
)
 
311.7

Patents
 
32.7

 
(28.3
)
 
4.4

 
34.9

 
(28.4
)
 
6.5

Engineering drawings
 
11.0

 
(9.3
)
 
1.7

 
11.5

 
(9.1
)
 
2.4

Distribution network
 
19.7

 

 
19.7

 
21.0

 

 
21.0

Other intangibles
 
170.9

 
(71.7
)
 
99.2

 
176.6

 
(63.8
)
 
112.8

 
 
$
960.0

 
$
(245.3
)
 
$
714.7

 
$
981.9

 
$
(215.7
)
 
$
766.2


Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $35.1 million, $35.3 million and $36.5 million, respectively.  Excluding the impact of any future acquisitions or divestitures, the company anticipates amortization will be approximately $35 million per year for next five years.
Accounts Payable and Accrued Expenses
Accounts Payable and Accrued Expenses
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses at December 31, 2014 and December 31, 2013 are summarized as follows:
(in millions)
 
2014
 
2013
Trade accounts payable and interest payable
 
$
470.0

 
$
510.6

Employee related expenses
 
90.3

 
99.9

Restructuring expenses
 
20.3

 
20.6

Profit sharing and incentives
 
6.8

 
44.7

Accrued rebates
 
52.8

 
45.2

Deferred revenue - current
 
21.6

 
25.0

Income taxes payable
 
16.2

 
62.5

Miscellaneous accrued expenses
 
129.4

 
127.1

 
 
$
807.4

 
$
935.6

Debt
Debt
Debt
Outstanding debt at December 31, 2014 and December 31, 2013 is summarized as follows:
(in millions)
 
2014
 
2013
Revolving credit facility
 
$

 
$

Term loan A
 
336.9

 
162.5

Term loan B
 
168.5

 

Senior notes due 2018
 

 
408.4

Senior notes due 2020
 
614.8

 
614.8

Senior notes due 2022
 
296.9

 
289.1

Other
 
106.4

 
52.0

Total debt
 
1,523.5

 
1,526.8

Less current portion and short-term borrowings
 
(80.3
)
 
(22.7
)
Long-term debt
 
$
1,443.2

 
$
1,504.1

 
On January 3, 2014, the company entered into the $1,050.0 million Third Amended and Restated Credit Agreement (the “Senior Credit Facility”) with JPMorgan Chase Bank, N.A., as Administrative Agent, Deutsche Bank Securities Inc., Bank of America, N.A., Wells Fargo Bank, National Association, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., BMO Harris Bank N.A. and Rabobank Nederland, New York Branch as Documentation Agents. The Senior Credit Facility includes three different loan facilities. The first is a revolving facility in the amount of $500.0 million, with a term of five years. The second facility is a Term A Loan in the aggregate amount of $350.0 million, with a term of five years. The third facility is a Term B Loan in the amount of $200.0 million, with a term of seven years.
The Senior Credit Facility replaced the company’s prior $1,250.0 million Second Amended and Restated Credit Agreement (the “Prior Senior Credit Facility”), which was entered into on May 13, 2011. The Prior Senior Credit Facility included three different loan facilities.  The first was a revolving facility in the amount of $500.0 million, with a term of five years.  The second facility was an amortizing Term Loan A facility in the aggregate amount of $350.0 million with a term of five years.  The third facility was an amortizing Term Loan B facility in the amount of $400.0 million with a term of 6.5 years. 
As of December 31, 2014, the company had no borrowings on the revolving facility. During the year, the highest daily borrowing was $467.9 million and the average borrowing was $342.7 million, while the average interest rate was 2.68%. The interest rate fluctuates based upon LIBOR or a Prime rate plus a spread which is based upon the Consolidated Total Leverage Ratio of the company. As of December 31, 2014, the spreads for LIBOR and Prime borrowings were 2.00% and 1.00%, respectively given the effective Consolidated Total Leverage Ratio for this period. The company also pays a commitment fee of 0.375% per annum on the unused portion of the revolving facility. The company is also obligated to pay certain fees and expenses of the lenders.
As of December 31, 2014, the company had outstanding $175.0 million notional amount of float-to-fixed interest rate swaps outstanding related to Term Loan A under the New Senior Credit Facility that were designated as cash flow hedges. As a result, $175.0 million of Term Loan A was hedged at an interest rate of 1.635%, plus the applicable spread based on the Consolidated Total Leverage Ratio of the company as defined under the New Senior Credit Facility.
See Note 6, “Derivative Financial Instruments” for a description of hedging instruments used to mitigate interest rate risk. 
Including interest rate swaps at December 31, 2014, the weighted average interest rates for Term Loan A and Term Loan B loans were 2.95% and 3.25%, respectively.  Excluding interest rate swaps, the interest rates on Term Loan A and Term Loan B were 2.19% and 3.25%, respectively, at December 31, 2014.
Loans made under the Senior Credit Facility are secured by substantially all of the assets of, and guaranteed by, the material direct and indirect domestic subsidiaries of the company, and secured by 65% of the stock of certain foreign subsidiaries of Manitowoc. The Senior Credit Facility also requires the company to provide additional collateral to the lenders under the Senior Credit Facility in certain limited circumstances.
The Senior Credit Facility also includes customary representations and warranties and events of default and customary covenants, including without limitation (i) a requirement that the company prepay the term loan facilities from the net proceeds of asset sales, casualty losses, equity offerings, and new indebtedness for borrowed money, and from a portion of its excess cash flow, subject to certain exceptions; and (ii) limitations on indebtedness, capital expenditures, restricted payments, and acquisitions.
The Senior Credit Facility contains financial covenants including (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) consolidated earnings before interest, taxes, depreciation and amortization, and other adjustments (Adjusted EBITDA), as defined in the credit agreement to (ii) consolidated cash interest expense, each for the most recent four fiscal quarters; and (b) a Consolidated Senior Secured Leverage Ratio, which measures the ratio of (i) consolidated senior secured indebtedness to (ii) consolidated EBITDA for the most recent four fiscal quarters.  The covenant levels of the financial covenants under the New Senior Credit Facility are as set forth below:
Fiscal Quarter Ending
 
Consolidated Senior
Secured Leverage
Ratio
(less than)
 
Consolidated Interest
 Coverage Ratio
(greater than)
December 31, 2014
 
3.25:1.00
 
2.50:1.00
March 31, 2015
 
3.25:1.00
 
2.75:1.00
June 30, 2015
 
3.25:1.00
 
2.75:1.00
September 30, 2015
 
3.25:1.00
 
2.75:1.00
December 31, 2015
 
3.25:1.00
 
2.75:1.00
March 31, 2016 and thereafter
 
3.00:1.00
 
3.00:1.00

As of December 31, 2014 the company had two series of Senior Notes outstanding, the 2020 and 2022 Notes (collectively the “Senior Notes”).  Each series of Senior Notes are unsecured senior obligations ranking subordinate to all existing senior secured indebtedness and equal to all existing senior unsecured obligations.  Each series of Senior Notes is guaranteed by certain of the company’s wholly owned domestic subsidiaries, which subsidiaries also guaranty the company’s obligations under the Senior Credit Facility.  Each series of Senior Notes contains affirmative and negative covenants which limit, among other things, the company’s ability to redeem or repurchase its debt, incur additional debt, make acquisitions, merge with other entities, pay dividends or distributions, repurchase capital stock, and create or become subject to liens.  Each series of Senior Notes also includes customary events of default. If an event of default occurs and is continuing with respect to the Senior Notes, then the Trustee or the holders of at least 25% of the principal amount of the outstanding Senior Notes may declare the principal and accrued interest on all of the Senior Notes to be due and payable immediately. In addition, in the case of an event of default arising from certain events of bankruptcy, all unpaid principal of, and premium, if any, and accrued and unpaid interest on all outstanding Senior Notes will become due and payable immediately. 
On October 19, 2012, the company completed the sale of $300.0 million aggregate principal amount of its 5.875% Senior Notes due October 2022 (the “2022 Notes”) at an issue price of 100%. Net proceeds from the 2022 Notes were used to redeem the entire $150.0 million aggregate principal amount of its former 2013 Notes, to repay $36.0 million of Term Loan B under its Prior Senior Credit Facility, and to repay a portion of the outstanding revolver borrowings under its Prior Senior Credit Facility. Interest on the 2022 Notes is payable semi-annually on April 15 and October 15 of each year.
The following would be the principal and premium paid by the company, expressed as percentages of the principal amount thereof, if it redeems the 2022 Notes during the 12-month period commencing on October 15 of the year set forth below:
Year
Percentage
2017
102.938
%
2018
101.958
%
2019
100.979
%
2020 and thereafter
100.000
%

In addition, at any time prior to October 15, 2015, the company is permitted to, at its option, use the net cash proceeds of one or more public equity offers to redeem up to 35% of the 2022 Notes at a redemption price of 105.875%, plus accrued but unpaid interest, if any, to the date of redemption; provided that (1) at least 65% of the principal amount of the 2022 Notes outstanding remains outstanding immediately after any such redemption; and (2) the company makes such redemptions not more than 90 days after the consummation of any such public offering. Further, the company is required to offer to repurchase the 2022 Notes for cash at a price of 101% of the aggregate principal amount of the 2022 Notes, plus accrued and unpaid interest, if any, upon the occurrence of a change of control triggering event.
On October 18, 2010, the company completed the sale of $600.0 million aggregate principal amount of its 8.50% Senior Notes due 2020 (the “2020 Notes”).  Interest on the 2020 Notes is payable semi-annually in May and November of each year. 
The following would be the principal and premium paid by the company, expressed as percentages of the principal amount thereof, if it redeems the 2020 Notes during the 12-month period commencing on November 1 of the year set forth below: 
Year
Percentage
2015
104.250
%
2016
102.833
%
2017
101.417
%
2018 and thereafter
100.000
%

On February 3, 2010, the company completed the sale of $400.0 million aggregate principal amount of its 9.50% Senior Notes due 2018 (the “2018 Notes”). Interest on the 2018 Notes was payable semiannually in February and August of each year.  On February 18, 2014 the company redeemed its 2018 Notes for $419.0 million or 104.750%, expressed as a percentage of the principal amount.
In the third quarter of 2012, the company monetized the derivative asset related to the fixed-to-float interest rate swaps related to its 2018 and 2020 Notes and received $14.8 million. The company treated the gain as an increase to the debt balances for each of the 2018 and 2020 Notes, and is being amortized to interest expense over the life of the original swaps.
In the fourth quarter of 2012, the company purchased and designated new fixed-to-float swaps as fair market value hedges of the 2022 Notes. 
In May 2013, the company entered into new interest rate swaps due in 2020 and 2022, designating them as fair market value hedges of the 2020 and 2022 Notes, respectively. As of December 31, 2014, $75.0 million and $125.0 million of the 2020 and 2022 Notes, respectively, were swapped to floating rate interest.  Including the floating rate swaps, the 2020 and 2022 Notes have an all-in interest rate of 8.31% and 5.19%, respectively.
See Note 6, “Derivative Financial Instruments,” for a description of hedging instruments used to mitigate interest rate risk. 
The balance sheet values of the 2018, 2020, and 2022 Notes at December 31, 2014 and December 31, 2013 are not equal to the face value of the Senior Notes due to the fact that the fair market value of the interest rate hedges and interest rate monetization premiums on these Senior Notes are included in the balance sheet value.
The loss on debt extinguishment was $25.5 million during the year ended December 31, 2014 , of which $19.0 million related to the redemption premium on the 2018 Notes and $4.3 million related to the write-off of deferred financing fees associated with the 2018 Notes. Of the remaining balance, a $2.0 million loss related to the write-off of deferred financing fees as a result of the January 2014 Senior Credit Facility refinancing, and a $0.2 million loss due to the write-off of deferred financing fees due to accelerated pay downs on Term Loan B. The losses on debt extinguishment of $3.0 million and $6.3 million during the years ended December 31, 2013 and December 31, 2012, respectively, consisted entirely of the write-off of deferred financing fees due to accelerated pay downs on Term Loans A and B.
As of December 31, 2014, the company had outstanding $106.4 million of other indebtedness that has a weighted-average interest rate of approximately 5.43%.  This debt includes outstanding overdraft balances and capital lease obligations in the Americas, Asia-Pacific and European regions, as well as a $20.3 million loan on a model 31000 crawler crane.
The aggregate scheduled maturities of outstanding debt obligations in subsequent years are as follows:
(in millions)
 
2015
$
80.3

2016
50.4

2017
52.0

2018
58.9

2019
194.4

Thereafter
1,087.5

Total
$
1,523.5

 
As of December 31, 2014, the company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the Senior Credit Facility, the 2020 Notes, and the 2022 Notes.  Based upon management’s current plans and outlook, it believes the company will be able to comply with these covenants during the subsequent 12 months. As of December 31, 2014 our Consolidated Senior Secured Leverage Ratio was 1.79:1, while the maximum ratio is 3.25:1 and our Consolidated Interest Coverage Ratio was 4.77:1, above the minimum ratio of 2.50:1.
Accounts Receivable Securitization
Accounts Receivable Securitization
Accounts Receivable Securitization
On December 15, 2014, the company completed changes to its accounts receivable securitization facility by entering into a Fifth Amended and Restated Receivables Purchase Agreement (the “Receivables Purchase Agreement”) among Manitowoc Funding, LLC (“U.S. Seller”) and Manitowoc Cayman Islands Funding Ltd. (“Cayman Seller”), as sellers, the Company, Garland Commercial Ranges Limited (“Garland”), Convotherm Elektrogeräte GmbH (“Convotherm”), Manitowoc Deutschland GmbH (“Manitowoc Deutschland”), Manitowoc Foodservice UK Limited (“Foodservice UK”), and the other persons from time to time party thereto, as servicers, and Wells Fargo Bank, N.A. (“Wells Fargo” or “Purchaser”), as purchaser and agent.  Pursuant to this amendment, (i) the commitment size of this facility increased from up to $150 million to up to $185 million; and (ii) a German subsidiary (Manitowoc Deutschland) and a United Kingdom subsidiary (Foodservice UK) were added as “originators” under the facility. The company’s cost of funds under the facility continues to use a LIBOR index rate plus a 1.25% fixed spread.
Under the Receivables Purchase Agreement (and the related Purchase and Sale Agreements referenced in the Receivables Purchase Agreement), the company’s domestic trade accounts receivable are sold to U.S. Seller which, in turn, sells, conveys, transfers and assigns to a third-party financial institution (“Purchaser”), all of the U.S. Sellers’ right, title and interest in and to a pool of receivables to the Purchaser. Certain of the company’s non-U.S. trade accounts receivable are sold to Cayman Seller which, in turn, will sell, convey, transfer and assign to Purchaser, all of Cayman Seller’s right, title and interest in and to a pool of receivables to the Purchaser.
The Purchaser receives ownership of the pool of receivables, in each instance. New receivables are purchased by U.S. Seller or Cayman Seller, as applicable, and resold to the Purchaser as cash collections reduce previously sold investments. The Manitowoc Company, Inc., Garland, Convotherm, Manitowoc Deutschland, and Foodservice UK act as the servicers of the receivables and as such administer, collect and otherwise enforce the receivables. The servicers are compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. As servicers, they initially receive payments made by obligors on the receivables but are required to remit those payments to the Purchaser in accordance with the Receivables Purchase Agreement. The Purchaser has no recourse for uncollectible receivables. The securitization program also contains customary affirmative and negative covenants. Among other restrictions, these covenants require the company to meet specified financial tests, which include a consolidated interest coverage ratio and a consolidated senior secured leverage ratio that are the same as the covenant ratios required per the Senior Credit Facility. As of December 31, 2014, the company was in compliance with all affirmative and negative covenants inclusive of the financial covenants pertaining to the Receivables Purchase Agreement, as amended. Based on management’s current plans and outlook, it believes the company will be able to comply with these covenants during the subsequent 12 months.
Due to a short average collection cycle of less than 60 days for such accounts receivable and due to the company’s collection history, the fair value of the company’s deferred purchase price notes approximates book value. The fair value of the deferred purchase price notes recorded at December 31, 2014 and 2013 was $50.9 million and $41.3 million, respectively, and is included in accounts receivable in the accompanying Consolidated Balance Sheets.
The securitization program has a maximum capacity of $185 million and includes certain of the company’s U.S., Canadian, German, and UK Foodservice and U.S. and German Crane segment businesses.  Trade accounts receivables sold to the Purchaser and being serviced by the company totaled $172.8 million at December 31, 2014 and $148.9 million at December 31, 2013.
Transactions under the accounts receivables securitization program are accounted for as sales in accordance with ASC Topic 860, “Transfers and Servicing.”  Sales of trade receivables to the Purchaser are reflected as a reduction of accounts receivable in the accompanying Consolidated Balance Sheets and the proceeds received, including collections on the deferred purchase price notes, are included in cash flows from operating activities in the accompanying Consolidated Statements of Cash Flows.  The company deems the interest rate risk related to the deferred purchase price notes to be de minimis, primarily due to the short average collection cycle of the related receivables (i.e., 60 days) as noted above.
Income Taxes
Income Taxes
Income Taxes
Earnings from continuing operations are summarized below:
(in millions)
 
2014
 
2013
 
2012
Earnings (loss) from continuing operations before income taxes:
 
 

 
 

 
 

Domestic
 
$
32.6

 
$
90.1

 
$
94.1

Foreign
 
136.8

 
135.1

 
52.8

Total
 
$
169.4

 
$
225.2

 
$
146.9


Income tax expense (benefit) from continuing operations is summarized as follows:
(in millions)
 
2014
 
2013
 
2012
Current:
 
 

 
 

 
 

Federal and state
 
$
(12.0
)
 
$
24.1

 
$
29.2

Foreign
 
26.8

 
25.4

 
17.3

Total current
 
$
14.8

 
$
49.5

 
$
46.5

Deferred:
 
 

 
 

 
 

Federal and state
 
$
4.5

 
$
(15.2
)
 
$
(5.2
)
Foreign
 
(10.7
)
 
1.8

 
(3.3
)
Total deferred
 
$
(6.2
)
 
$
(13.4
)
 
$
(8.5
)
Provision for taxes on earnings
 
$
8.6

 
$
36.1

 
$
38.0


The federal statutory income tax rate is reconciled to the company’s effective income tax rate for continuing operations for the years ended December 31, 2014, 2013 and 2012 as follows, which excludes the impact of discontinued operations which had an effective tax rate of 6.9% for 2014:
 
 
2014
 
2013
 
2012
Federal income tax at statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State income provision (benefit)
 
(0.4
)
 
(0.5
)
 
0.3

Manufacturing & research incentives
 
(2.7
)
 
(3.3
)
 
(3.5
)
Taxes on foreign income which differ from the U.S. statutory rate
 
(14.4
)
 
(9.3
)
 
(7.7
)
Adjustments for unrecognized tax benefits
 
(1.4
)
 
(5.4
)
 
(6.7
)
Adjustments for valuation allowances
 
26.8

 
(1.0
)
 
9.2

Capital loss generation
 
(45.7
)
 

 

Change in assertion over permanently reinvested foreign earnings
 
3.2

 

 

Other items
 
4.7

 
0.5

 
(0.7
)
Effective tax rate
 
5.1
 %
 
16.0
 %
 
25.9
 %

The 2014, 2013, and 2012 effective tax rates were favorably impacted by income earned in jurisdictions where the statutory rate was less than 35%.
In the third quarter of 2014, the company made an election with the Internal Revenue Service to treat Enodis Holdings Ltd, the company’s UK Holding Company, as a partnership for U.S. federal income tax purposes. As a result of this status change, the company realized a $25.6 million capital loss tax benefit. This transaction resulted in an effective tax rate benefit of 15.1%.
As of each reporting date, the company's management considers new evidence, both positive and negative, that could impact management's view with regard to future realization of deferred tax assets. In the second quarter of 2014, management determined that it was more likely than not that deferred taxes of $9.0 million related to its China crane operations were realizable, and reduced the related valuation allowance. In the third quarter of 2014, management determined that it was more likely than not that deferred taxes of $3.6 million related to its Spanish foodservice operations were realizable, and reduced the related valuation allowance. In the fourth quarter of 2014, due to a Spanish legislative change, management determined that it was more likely than not that additional deferred taxes of $0.6 million related to its Spanish foodservice operations were realizable, and reduced the valuation allowance accordingly. In the fourth quarter of 2014, the company recorded a valuation allowance of $1.1 million on the Wisconsin net operating loss carryforwards as management determined that it was more likely than not that a portion of the losses would not be realized. The company continues to record valuation allowances on the deferred tax assets in France, Italy, Slovakia, and the UK, as it remains more likely than not that they will not be utilized.

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.
No items included in Other items are individually, or when appropriately aggregated, significant.
Temporary differences and carryforwards that give rise to deferred tax assets and liabilities include the following items:
(in millions)
 
2014
 
2013
Current deferred tax assets (liabilities):
 
 

 
 

   Inventories
 
$
29.5

 
$
32.3

   Accounts receivable
 
(5.6
)
 
(2.1
)
   Product warranty reserves
 
19.0

 
20.0

   Product liability reserves
 
8.3

 
7.9

   Deferred revenue, current portion
 
7.7

 
0.6

   Deferred employee benefits
 
13.3

 
16.6

   Other reserves and allowances
 
5.7

 
16.1

   Less valuation allowance
 
(12.2
)
 
(3.6
)
   Net deferred tax assets, current
 
$
65.7

 
$
87.8

Non-current deferred tax assets (liabilities):
 
 
 
 
   Property, plant and equipment
 
$
(28.2
)
 
$
(32.6
)
   Intangible assets
 
(281.8
)
 
(296.3
)
   Deferred employee benefits
 
87.7

 
67.1

   Product warranty reserves
 
5.2

 
4.2

   Tax credits
 
1.0

 
2.3

   Loss carryforwards
 
199.0

 
192.7

   Deferred revenue
 
4.0

 
5.9

   Other
 
(0.7
)
 
(2.4
)
   Total non-current deferred tax liabilities
 
(13.8
)
 
(59.1
)
   Less valuation allowance
 
(156.0
)
 
(146.2
)
   Net deferred tax liabilities, non-current
 
$
(169.8
)
 
$
(205.3
)

The net deferred tax assets (liabilities) are reflected in the Consolidated Balance Sheets for the years ended December 31, 2014 and December 31, 2013 as follows:
(in millions)
 
2014
 
2013
Current income tax asset
 
$
71.3

 
$
89.9

Long-term income tax assets, included in other non-current assets
 
16.4

 
9.0

Current deferred income tax liability, included in accounts payable and accrued expenses
 
(5.6
)
 
(2.1
)
Long-term deferred income tax liability
 
(186.2
)
 
(214.3
)
Net deferred income tax liability
 
$
(104.1
)
 
$
(117.5
)

The company has not provided for additional U.S. income taxes on approximately $652.8 million of undistributed earnings of consolidated non-U.S. subsidiaries included in stockholders’ equity. Such earnings could become taxable upon sale or liquidation of these non-U.S. subsidiaries or upon dividend repatriation of cash balances. It is not practicable to estimate the amount of the unrecognized tax liability on such earnings. At December 31, 2014, approximately $37.2 million of the company’s total cash and cash equivalents were held by its foreign subsidiaries. This cash is associated with earnings that the company has asserted are permanently reinvested. The company has no current plans to repatriate cash or cash equivalents held by its foreign subsidiaries because it plans to reinvest such cash and cash equivalents to support its operations and continued growth plans outside the United States through the funding of capital expenditures, acquisitions, research, operating expenses or other similar cash needs of these operations. Further, the company does not currently forecast a need for these funds in the United States because its U.S. operations and debt service are supported by the cash generated by its U.S. operations. During 2014, the company could no longer assert permanent reinvestment on one subsidiary and as a result, a liability was recorded in the amount of $5.4 million.
The company has approximately $520.9 million of state net operating loss carryforwards, which are available to reduce future state tax liabilities.  These state net operating loss carryforwards expire at various times through 2031. The company has recognized a deferred tax asset of $19.2 million for net operating loss carryforwards generated in the state of Wisconsin. 
The company has approximately $551.5 million of foreign loss carryforwards, which are available to reduce future foreign tax liabilities.  Substantially all of the foreign loss carryforwards are not subject to any time restrictions on their future use, and $495.7 million are offset by a valuation allowance.  The company also has approximately $139.1 million of U.S. capital loss carryforwards which expire in 2019 and are offset by a valuation allowance.
The company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The following table provides the open tax years for which the company could be subject to income tax examination by the tax authorities in its major jurisdictions:
Jurisdiction
 
Open Years
U.S. Federal
 
2012 — 2014
Wisconsin
 
2009 — 2014
China
 
2007 — 2014
France
 
2013 — 2014
Germany
 
2006 — 2014

The company was under examination by the Internal Revenue Service for the calendar years 2007 through 2011.  The examination of the company’s 2007 through 2009 U.S. tax returns was closed during the third quarter of 2014 as the Joint Committee on Taxation concurred with the previously reached tentative resolution of the Appeals division, which was in the company’s favor.  The 2010 and 2011 U.S. tax return examination was closed in the fourth quarter of 2014.  The adjustments did not have a material impact on the financial statements.  There have been no significant developments with respect to the company’s ongoing tax audits in other jurisdictions.

The company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves.  As of December 31, 2014, the company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows.  However, the final determination with respect to any tax audits, and any related litigation, could be materially different from the company’s estimates and/or from its historical income tax provisions and accruals and could have a material effect on operating results and/or cash flows in the periods for which that determination is made.  In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments.
During the years ended December 31, 2014, 2013 and 2012, the company recorded a change to gross unrecognized tax benefits including interest and penalties of $(9.8) million, $(20.7) million, and $(10.4) million, respectively. The effective tax rate in 2014, 2013, and 2012 was favorably impacted by the release of reserves of $8.3 million, $9.4 million and $11.6 million, respectively, resulting from favorable audit outcomes, and other settlements.
During the years ended December 31, 2014, 2013 and 2012, the company recognized in the consolidated statements of operations $(5.2) million, $(9.3) million, and $(1.4) million, respectively, for interest and penalties related to uncertain tax liabilities, which the company recognizes as a part of income tax expense.  As of December 31, 2014 and 2013, the company has accrued interest and penalties of $5.6 million and $12.8 million, respectively.
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 is as follows:
(in millions)
 
2014
 
2013
 
2012
Balance at beginning of year
 
$
35.9

 
$
47.3

 
$
56.3

Additions based on tax positions related to the current year
 
15.5

 
2.0

 
1.8

Additions for tax positions of prior years
 
0.1

 
3.7

 
3.6

Reductions for tax positions of prior years
 
(2.7
)
 
(8.1
)
 
(11.9
)
Reductions based on settlements with taxing authorities
 
(7.3
)
 
(3.6
)
 
(1.1
)
Reductions for lapse of statute
 
(8.2
)
 
(5.4
)
 
(1.4
)
Balance at end of year
 
$
33.3

 
$
35.9

 
$
47.3


Substantially all of the company’s unrecognized tax benefits as of December 31, 2014, 2013 and 2012, if recognized, would affect the effective tax rate.
During the next twelve months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce unrecognized tax benefits and income tax expense by up to $3.7 million, either because the company’s tax positions are sustained on audit or settled, or the applicable statute of limitations closes.
Earnings Per Share
Earnings Per Share
Earnings Per Share
The following is a reconciliation of the average shares outstanding used to compute basic and diluted earnings per share: 
 
 
2014
 
2013
 
2012
Basic weighted average common shares outstanding
 
134,934,892

 
132,894,179

 
131,447,895

Effect of dilutive securities - stock awards
 
2,416,417

 
2,436,014

 
1,869,155

Diluted weighted average common shares outstanding
 
137,351,309

 
135,330,193

 
133,317,050

 
For the years ended December 31, 2014, 2013, and 2012, 1.2 million, 2.3 million, and 3.4 million, respectively, of common shares issuable upon the exercise of stock options were anti-dilutive and were excluded from the calculation of diluted earnings per share.
Equity
Equity
Equity
Authorized capitalization consists of 300 million shares of $0.01 par value common stock and 3.5 million shares of $0.01 par value preferred stock.  None of the preferred shares have been issued.
On March 21, 2007, the Board of Directors of the company approved the Rights Agreement between the company and Computershare Trust Company, N.A., as Rights Agent and declared a dividend distribution of one right (a Right) for each outstanding share of Common Stock, par value $0.01 per share, of the company, to shareholders of record at the close of business on March 30, 2007.  In addition to the Rights issued as a dividend on the record date, the Board of Directors has also determined that one Right will be issued together with each share of common stock issued by the company after March 30, 2007.  Generally, each Right, when it becomes exercisable, entitles the registered holder to purchase from the company one share of Common Stock at a purchase price, in cash, of $110.00 per share, subject to adjustment as set forth in the Rights Agreement.
As explained in the Rights Agreement, the Rights become exercisable on the “Distribution Date”, which is that date that any of the following occurs: (1) 10 days following a public announcement that a person or group of affiliated persons has acquired, or obtained the right to acquire, beneficial ownership of 20% or more of the outstanding shares of Common Stock of the company; or (2) 10 business days following the commencement of a tender offer or exchange offer that would result in a person or group beneficially owning 20% or more of such outstanding shares of Common Stock.  The Rights will expire at the close of business on March 29, 2017, unless earlier redeemed or exchanged by the company as described in the Rights Agreement.
The amount and timing of the annual dividend are determined by the Board of Directors at its regular meetings each year subject to limitations within the company’s Prior and New Senior Credit Facility.  In each of the years ended December 31, 2014, December 31, 2013 and December 31, 2012, the company paid an annual dividend of $0.08 per share in the fourth quarter. 
Currently, the company has authorization to purchase up to 10 million shares of common stock at management’s discretion.  As of December 31, 2014, the company had purchased approximately 7.6 million shares at a cost of $49.8 million pursuant to this authorization.  The company did not purchase any shares of its common stock during 2014, 2013, or 2012.
The components of accumulated other comprehensive income (loss) as of December 31, 2014 and 2013 are as follows:
(in millions)
 
2014
 
2013
Foreign currency translation
 
$
(29.2
)
 
$
54.8

Derivative instrument fair market value, net of income taxes of $(3.2) and $0.6
 
(6.3
)
 
1.0

Employee pension and postretirement benefit adjustments, net of income taxes of $(40.1) and $(26.8)
 
(95.0
)
 
(62.7
)
 
 
$
(130.5
)
 
$
(6.9
)

A reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component for the year ended December 31, 2013 and December 31, 2014 is as follows:
(in millions)
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Foreign Currency Translation
 
Total
Balance at December 31, 2012
 
$
0.6

 
$
(80.3
)
 
$
50.3

 
$
(29.4
)
Other comprehensive loss before reclassifications
 
$
1.3

 
$
13.5

 
$
4.5

 
$
19.3

Amounts reclassified from accumulated other comprehensive income
 
(0.9
)
 
4.1

 

 
3.2

Net current period other comprehensive income
 
0.4

 
17.6

 
4.5

 
22.5

Balance at December 31, 2013
 
$
1.0

 
$
(62.7
)
 
$
54.8

 
$
(6.9
)
Other comprehensive loss before reclassifications
 
(9.9
)
 
(35.4
)
 
(84.0
)
 
(129.3
)
Amounts reclassified from accumulated other comprehensive income
 
2.6

 
3.1

 

 
5.7

Net current period other comprehensive loss
 
(7.3
)
 
(32.3
)
 
(84.0
)
 
(123.6
)
Balance at December 31, 2014
 
$
(6.3
)
 
$
(95.0
)
 
$
(29.2
)
 
$
(130.5
)












A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2014 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
(2.2
)
 
Cost of sales
  Commodity contracts
 
(0.1
)
 
Cost of sales
  Interest rate swap contracts: Float-to-fixed
 
(1.8
)
 
Interest expense
 
 
(4.1
)
 
Total before tax
 
 
1.5

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

(a)
 
  Actuarial losses
 
(4.3
)
(a)
 
 
 
(4.1
)
 
Total before tax
 
 
1.0

 
Tax benefit
 
 
$
(3.1
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(5.7
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 20, “Employee Benefit Plans,” for further details).

A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2013 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
3.0

 
Cost of sales
  Commodity contracts
 
(1.6
)
 
Cost of sales
 
 
1.4

 
Total before tax
 
 
(0.5
)
 
Tax expense
 
 
$
0.9

 
Net of tax
Amortization of pension and postretirement items
 
 
 
 
  Actuarial losses
 
(5.5
)
(a)
 
 
 
(5.5
)
 
Total before tax
 
 
1.4

 
Tax benefit
 
 
$
(4.1
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(3.2
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 20, “Employee Benefit Plans,” for further details).
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
The company’s 2013 Omnibus Incentive Plan (the “2013 Omnibus Plan”) was approved by shareholders on May 7, 2013 and replaced the 2003 Incentive Stock and Awards Plan (the “2003 Stock Plan”) and 2004 Non-Employee Director Stock and Awards Plan (the “2004 Stock Plan”). The 2013 Omnibus Plan also replaced the company’s Short-Term Incentive Plan (the “STIP”) as of December 31, 2013. The 2003 Stock Plan, the 2004 Stock Plan and the STIP are referred to as the “Prior Plans.” No new awards may be granted under the Prior Plans after the respective termination dates, but the Prior Plans continue to govern awards outstanding; outstanding awards will continue in force and effect until vested, exercised or forfeited pursuant to their terms. The 2013 Omnibus Plan provides for both short-term and long-term incentive awards for employees and non-employee directors. Stock-based awards may take the form of stock options, stock appreciation rights, restricted stock, restricted stock units, and performance share or performance unit awards. The total number of shares of the company’s common stock originally available for awards under the 2013 Omnibus Plan is 8.0 million shares and is subject to adjustments for stock splits, stock dividends and certain other transactions or events in the future.
The 2003 Stock Plan provided for both short-term and long-term incentive awards for employees. Options granted under the plan prior to 2011 became exercisable in 25% increments beginning on the second anniversary of the grant date over a four-year period and expire ten years subsequent to the grant date.  Option grants to employees beginning in 2011 became exercisable in 25% increments beginning on the first anniversary of the grant date over a four-year period and expire ten years subsequent to the grant date.  Restrictions on restricted stock awarded under this plan lapse 100% on the third anniversary of the grant date.  Performance shares granted under the 2013 Omnibus Plan and the 2003 Stock Plan are earned based on the extent to which performance goals are met over the applicable performance period.  The performance goals and the applicable performance period vary for each grant year.  An explanation of the performance goals and the applicable performance period for the 2014, 2013 and 2012 awards is set forth below.  There have been no awards of stock appreciation rights or performance units under the 2003 Stock Plan.
The 2004 Stock Plan provided for the granting of stock options to non-employee members of the Board of Directors. No new awards may be made under the 2004 Stock Plan.  Stock options awarded under the plan were granted at an exercise price equal to the market price of the common stock at the date of grant and vest immediately and expire ten years subsequent to the grant date.  Restrictions on restricted stock awarded to date under the plan lapse on the third anniversary of the award date. 
The company recognizes expense for all stock-based compensation on a straight-line basis over the vesting period of the entire award.
Total stock-based compensation expense before tax was $12.6 million, $14.9 million and $16.4 million during 2014, 2013, and 2012, respectively. 
Stock Options
Any option grants to directors are exercisable immediately upon granting and expire ten years subsequent to the grant date.  For all outstanding grants made to officers and employees prior to 2011, options become exercisable in 25% increments annually over a four-year period beginning on the second anniversary of the grant date and expire ten years subsequent to the grant date.  Starting with 2011 grants to officers and directors, options become exercisable in 25% increments annually over a four-year period beginning on the first anniversary of the grant date and expire ten years subsequent to the grant date. 
The company granted options to acquire 0.3 million, 0.4 million and 0.7 million shares of common stock during 2014, 2013, and 2012, respectively. Stock-based compensation expense is calculated by estimating the fair value of incentive and non-qualified stock options at the time of grant and is amortized over the stock options’ vesting period. The company recognized $5.7 million ($3.6 million after taxes), $6.3 million ($4.0 million after taxes) and $6.7 million ($4.2 million after taxes) of compensation expense associated with stock options during 2014, 2013, and 2012, respectively.







A summary of the company’s stock option activity is as follows (in millions, except weighted average exercise price per share):
 
 
Shares
 
Weighted
Average
Exercise Price
 
Aggregate
Intrinsic
Value
Options outstanding as of January 1, 2013
 
7.4

 
$
15.27

 
 

Granted
 
0.4

 
18.14

 
 

Exercised
 
(0.6
)
 
8.35

 
 

Cancelled
 
(0.2
)
 
16.66

 
 

Options outstanding as of December 31, 2013
 
7.0

 
$
16.00

 
 

Granted
 
0.3

 
29.08

 
 

Exercised
 
(1.7
)
 
10.92

 
 

Cancelled
 

 
27.07

 
 

Options outstanding as of December 31, 2014
 
5.6

 
$
18.23

 
$
36.3

Options exercisable as of:
 
 

 
 

 
 

December 31, 2014
 
4.2

 
$
17.86

 
$
29.8


The outstanding stock options at December 31, 2014 have a range of exercise prices from $4.41 to $47.84 per share.  The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2014 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price):
 
 
Outstanding
 
Weighted
Average
Remaining
Contractual
 
Weighted
Average
 
Exercisable
 
Weighted
Average
Range of Exercise Price per Share
 
Options
 
Life (Years)
 
Exercise Price
 
Options
 
Exercise Price
$4.41 - $9.59
 
0.7

 
4.0
 
$
4.41

 
0.7

 
$
4.41

$9.60 - $10.21
 
0.2

 
0.3
 
10.13

 
0.2

 
10.13

$10.22 - $18.13
 
1.7

 
5.4
 
12.90

 
1.2

 
12.44

$18.14 - $26.09
 
1.2

 
6.0
 
19.17

 
0.8

 
19.38

$26.10- $29.06
 
0.5

 
1.3
 
26.11

 
0.5

 
26.11

$29.07 - $30.46
 
0.8

 
5.2
 
29.32

 
0.4

 
29.52

$30.47 - $36.03
 
0.1

 
9.2
 
30.47

 

 

$36.04 - $47.84
 
0.4

 
2.9
 
38.88

 
0.4

 
38.88

 
 
5.6

 
4.6
 
$
18.23

 
4.2

 
$
17.86


The company uses the Black-Scholes valuation model to value stock options.  The company used its historical stock prices as the basis for its volatility assumption.  The assumed risk-free rates were based on ten-year U.S. Treasury rates in effect at the time of grant.  The expected option life represents the period of time that the options granted are expected to be outstanding and is based on historical experience.
As of December 31, 2014, the company has $5.7 million of unrecognized compensation expense before tax related to stock options, which will be recognized over a weighted average period of 2.4 years.
The weighted average fair value of options granted per share during the years ended December 31, 2014, 2013, and 2012 was $14.84, $9.00, and $7.97, respectively.  The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing method with the following assumptions:
 
 
2014
 
2013
 
2012
Expected Life (years)
 
6.0

 
6.0

 
6.0

Risk-free Interest rate
 
1.9
%
 
1.1
%
 
1.1
%
Expected volatility
 
55.0
%
 
56.0
%
 
55.0
%
Expected dividend yield
 
0.4
%
 
0.6
%
 
0.6
%

For the years ended December 31, 2014, 2013, and 2012 the total intrinsic value of stock options exercised was $28.5 million, $6.9 million, and $4.9 million, respectively.
Restricted Stock Awards
The company granted restricted stock of 0.0 million, 0.1 million and 0.2 million of common stock during 2014, 2013, and 2012, respectively. Restricted stock award expense is based on the fair value of the company’s shares as of the grant date. The company recognized $1.0 million ($0.6 million after taxes), $2.8 million ($1.8 million after taxes), and $4.5 million ($2.8 million after taxes) of compensation expense associated with restricted stock for the years ended December 31, 2014, 2013, and 2012, respectively. The restrictions on all shares of restricted stock expire on the third anniversary of the applicable grant date. 
A summary of activity for restricted stock awards for the year ended December 31, 2014 is as follows (in millions except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2014
 
0.5

 
$
18.25

Granted
 

 

Vested
 
(0.3
)
 
19.58

Cancelled
 

 
17.21

Unvested as of December 31, 2014
 
0.2

 
$
16.58


As of December 31, 2014, the company has $0.3 million of unrecognized compensation expense before tax related to restricted stock, which will be recognized over a weighted average period of 0.8 years.
Restricted Stock Units
The company granted restricted stock units of 0.4 million, 0.5 million and 0.3 million in 2014, 2013, and 2012, respectively.  The restricted stock units are earned either based on service over the vesting period, or based on service over the vesting period and on the extent to which performance goals are met over the applicable performance period (“performance shares”).  The performance goals and the applicable performance period vary for each grant year. The company recognized $5.9 million ($3.8 million after taxes), $5.8 million ($3.6 million after taxes) and $5.2 million ($3.3 million after taxes) of compensation expense associated with restricted stock units during 2014, 2013 and 2012, respectively. 
The restricted stock units granted to employees in 2014 vest on the third anniversary of the grant date. The restricted stock units granted to directors in 2014 vest on the second anniversary of the grant date. The performance shares granted in 2014 are earned based on the extent to which performance goals are met by the company over a three-year period from January 1, 2014 to December 31, 2016. The performance goals for the performance shares granted in 2014 are based fifty percent (50%) on total shareholder return relative to a peer group of companies over the three-year period and fifty percent (50%) on EVA® improvement over the three-year period. Depending on the foregoing factors, the number of shares awarded could range from zero to 0.5 million for the 2014 performance share grants. For these awards, the expense is based on the fair value of the company's shares as of the grant date for the EVA® improvement criteria and a Monte Carlo model for the total shareholder return criteria.
The performance shares granted in 2013 are earned based on the extent to which performance goals are met by the company over a three-year period from January 1, 2013 to December 31, 2015. The performance goals for the performance shares granted in 2013 are based fifty percent (50%) on total shareholder return relative to a peer group of companies over the three-year period and fifty percent (50%) on debt reduction over the three-year period. Depending on the foregoing factors, the number of shares awarded could range from zero to 0.8 million for the 2013 performance share grants. For these awards, the expense is based on the fair value of the company's shares as of the grant date for the debt reduction criteria and a Monte Carlo model for the total shareholder return criteria.
The performance shares granted in 2012 were earned based on the extent to which performance goals were met by the company over a three-year period from January 1, 2012 to December 31, 2014.  The performance goals for the performance shares granted in 2012 were based fifty percent (50%) on total shareholder return relative to a peer group of companies over the three-year period and fifty percent (50%) on improvement in the company’s total leverage ratio over the three-year period.  Depending on the foregoing factors, the number of shares awarded could have ranged from zero to 0.7 million for the 2012 performance share grants. Based on the performance criteria a total of 0.2 million shares will be awarded. For these awards, the expense is based on the fair value of the company's shares as of the grant date for the total leverage ratio criteria and a Monte Carlo model for the total shareholder return criteria.
A summary of activity for restricted stock units for the year ended December 31, 2014 is as follows (in millions except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2014
 
0.7

 
$
18.41

Granted
 
0.4

 
34.57

Vested*
 
(0.3
)
 
17.79

Cancelled
 

 
21.92

Unvested as of December 31, 2014
 
0.8

 
$
27.09


* Under the terms of the 2012 performance share award, the actual number of shares awarded could have ranged from zero to 0.7 million, depending on the company’s three-year performance as described above. Based on the performance criteria a total of 0.2 million shares will be awarded.
As of December 31, 2014, the company has $8.5 million of unrecognized compensation expense before tax related to restricted stock units which will be recognized over a weighted average period of 1.7 years.
Contingencies and Significant Estimates
Contingencies and Significant Estimates
Contingencies and Significant Estimates
As of December 31, 2014, the company held reserves for environmental matters related to Enodis locations of approximately $0.7 million.  At certain of the company’s other facilities, the company has identified potential contaminants in soil and groundwater.  The ultimate cost of any remediation required will depend upon the results of future investigation.  Based upon available information, the company does not expect the ultimate costs at any of these locations will have a material adverse effect on its financial condition, results of operations, or cash flows individually and in aggregate.
The company believes that it has obtained and is in substantial compliance with those material environmental permits and approvals necessary to conduct its various businesses.  Based on the facts presently known, the company does not expect environmental compliance costs to have a material adverse effect on its financial condition, results of operations, or cash flows.
As of December 31, 2014, various product-related lawsuits were pending.  To the extent permitted under applicable law, all of these are insured with self-insurance retention levels.  The company’s self-insurance retention levels vary by business, and have fluctuated over the last ten years.  The range of the company’s self-insured retention levels is $0.1 million to $3.0 million per occurrence.  The high-end of the company’s self-insurance retention level is a legacy product liability insurance program inherited in the Grove acquisition for cranes manufactured in the United States for occurrences from January 2000 through October 2002.  As of December 31, 2014, the largest self-insured retention level for new occurrences currently maintained by the company is $2.0 million per occurrence and applies to product liability claims for cranes manufactured in the United States.
Product liability reserves in the Consolidated Balance Sheets at December 31, 2014 and December 31, 2013 were $24.6 million and $25.0 million, respectively; $4.0 million and $5.7 million, respectively, was reserved specifically for actual cases, and $20.6 million and $19.3 million, respectively, for claims incurred but not reported, which were estimated using actuarial methods.  Based on the company’s experience in defending product liability claims, management believes the current reserves are adequate for estimated case resolutions on aggregate self-insured claims and insured claims.  Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers.
At December 31, 2014 and December 31, 2013, the company had reserved $92.2 million and $99.0 million, respectively, for warranty claims included in product warranties and other non-current liabilities in the Consolidated Balance Sheets.  Certain of these warranty and other related claims involve matters in dispute that ultimately are resolved by negotiations, arbitration, or litigation. See Note 18, “Guarantees,” for further information.
It is reasonably possible that the estimates for environmental remediation, product liability and warranty costs may change in the near future based upon new information that may arise or matters that are beyond the scope of the company’s historical experience.  Presently, there are no reliable methods to estimate the amount of any such potential changes.
The company is involved in numerous lawsuits involving asbestos-related claims in which the company is one of numerous defendants.  After taking into consideration legal counsel’s evaluation of such actions, the current political environment with respect to asbestos related claims, and the liabilities accrued with respect to such matters, in the opinion of management, ultimate resolution is not expected to have a material adverse effect on the financial condition, results of operations, or cash flows of the company.
The company is also involved in various legal actions arising out of the normal course of business, which, taking into account the liabilities accrued and legal counsel’s evaluation of such actions, in the opinion of management, the ultimate resolution of all matters is not expected to have a material adverse effect on the company’s financial condition, results of operations, or cash flows.
Guarantees
Guarantees
Guarantees
The company periodically enters into transactions with customers that provide for residual value guarantees and buyback commitments.  These initial transactions are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the customer’s third party financing agreement.  The deferred revenue included in other current and non-current liabilities at December 31, 2014 and December 31, 2013, was $59.5 million and $62.6 million, respectively.  The total amount of residual value guarantees and buyback commitments given by the company and outstanding at December 31, 2014 and December 31, 2013, was $58.9 million and $66.8 million, respectively.  These amounts are not reduced for amounts the company would recover from repossessing and subsequent resale of the units.  The residual value guarantees and buyback commitments expire at various times through 2018.
During the years ended December 31, 2014 and 2013, the company sold $17.0 million and $31.2 million, respectively, of its long-term notes receivable to third party financing companies. The company guarantees some percentage, up to 100%, of collection of the notes to the financing companies.  The company has accounted for the sales of the notes as a financing of receivables.  The receivables remain on the company’s Consolidated Balance Sheets, net of payments made, in other current and non-current assets and the company has recognized an obligation equal to the net outstanding balance of the notes in other current and non-current liabilities in the Consolidated Balance Sheets.  The cash flow benefit of these transactions is reflected as financing activities in the Consolidated Statements of Cash Flows.  During the years ended December 31, 2014 and 2013 customers have paid $17.3 million and $24.6 million, respectively, of the notes to the third party financing companies.  As of December 31, 2014 and 2013, the outstanding balance of the notes receivables guaranteed by the company was $34.0 million and $34.3 million, respectively.
In the normal course of business, the company provides its customers a warranty covering workmanship, and in some cases materials, on products manufactured by the company.  Such warranty generally provides that products will be free from defects for periods ranging from 12 months to 60 months with certain equipment having longer-term warranties.  If a product fails to comply with the company’s warranty, the company may be obligated, at its expense, to correct any defect by repairing or replacing such defective products.  The company provides for an estimate of costs that may be incurred under its warranty at the time product revenue is recognized.  These costs primarily include labor and materials, as necessary, associated with repair or replacement.  The primary factors that affect the company’s warranty liability include the number of units shipped and historical and anticipated warranty claims.  As these factors are impacted by actual experience and future expectations, the company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary.  Below is a table summarizing the warranty activity for the years ended December 31, 2014 and 2013:
(in millions)
 
2014
 
2013
Balance at beginning of period
 
$
99.0

 
$
101.2

Accruals for warranties issued during the period
 
59.8

 
58.6

Acquisition
 

 
0.2

Settlements made (in cash or in kind) during the period
 
(63.4
)
 
(61.7
)
Currency translation
 
(3.2
)
 
0.7

Balance at end of period
 
$
92.2

 
$
99.0

Restructuring
Restructuring
Restructuring
During the fourth quarter of 2014, the company committed to a restructuring plan to reduce the cost structure of its Crane operations through site closings, consolidations, and reductions in workforce across the globe. This is further to a restructuring plan committed to in 2012 to reduce the cost structure primarily in the French crane facilities. These restructuring plans are designed to better align the company’s resources given global economic conditions.
The following is a rollforward of all restructuring activities relating to the Crane segment for the twelve-month period ended December 31, 2014 (in millions):
Restructuring
Reserve Balance as
of
December 31, 2013
 
Restructuring
Charges
 
Use of Reserve
 
Restructuring
Reserve Balance as
of
December 31, 2014
$
4.3

 
$
6.6

 
$
(6.2
)
 
$
4.7


In conjunction with the acquisition of Enodis in October 2008, certain restructuring activities were undertaken to recognize cost synergies and rationalize the new cost structure of the Foodservice segment. The company recorded additional amounts in 2014 primarily related to employee termination benefits due to the movement of certain Ice manufacturing activities from Manitowoc, Wisconsin, to Monterrey, Mexico.
The following is a rollforward of all restructuring activities relating to the Foodservice segment for the twelve-month period ended December 31, 2014 (in millions):
Restructuring
Reserve Balance as
of
December 31, 2013
 
Restructuring
Charges
 
Use of Reserve
 
Restructuring
Reserve Balance as
of
December 31, 2014
$
16.3

 
$
2.4

 
$
(3.1
)
 
$
15.6

Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
The company maintains three defined contribution retirement plans for its employees: (1) The Manitowoc Company, Inc. 401(k) Retirement Plan (the “Manitowoc 401(k) Retirement Plan”); (2) The Manitowoc Company, Inc. Retirement Savings Plan (the “Manitowoc Retirement Savings Plan”); and (3) The Manitowoc Company, Inc. Deferred Compensation Plan (the “Manitowoc Deferred Compensation Plan”).  Each plan results in individual participant balances that reflect a combination of amounts contributed by the company or deferred by the participant, amounts invested at the direction of either the company or the participant, and the continuing reinvestment of returns until the accounts are distributed.
Manitowoc 401(k) Retirement Plan  The Manitowoc 401(k) Retirement Plan is a tax-qualified retirement plan that is available to substantially all non-union U.S. employees of Manitowoc, its subsidiaries and related entities.  The company merged the accounts of non-union participants in the Enodis Corporation 401(k) Plan with and into the Manitowoc 401(k) Retirement Plan on December 31, 2009.
The Manitowoc 401(k) Retirement Plan allows employees to make both pre- and post-tax elective deferrals, subject to certain limitations under the Internal Revenue Code of 1986, as amended (the “Tax Code”).  The company also has the right to make the following additional contributions: (1) a matching contribution based upon individual employee deferrals; (2) an economic value added (“EVA”) based company contribution; and (3) an additional non-EVA-based company contribution.  Each participant in the Manitowoc 401(k) Retirement Plan is allowed to direct the investment of that participant’s account among a diverse mix of investment funds, including a company stock alternative.  To the extent that any funds are invested in company stock, that portion of the Manitowoc 401(k) Retirement Plan is an employee stock ownership plan, as defined under the Tax Code (an “ESOP”).
The terms governing the retirement benefits under the Manitowoc 401(k) Retirement Plan are the same for the company’s executive officers as they are for other eligible employees in the U.S.
Manitowoc Retirement Savings Plan The Manitowoc Retirement Savings Plan is a tax-qualified retirement plan that is available to certain collectively bargained U.S. employees of Manitowoc, its subsidiaries and related entities.  The company merged the following plans with and into the Manitowoc Retirement Savings Plan on December 31, 2009: (1) The Manitowoc Cranes, Inc. Hourly-Paid Employees’ Deferred Profit-Sharing Plan; (2) the Manitowoc Ice, Inc. Hourly-Paid Employees’ Deferred Profit-Sharing Plan; and (3) the accounts of collectively bargained participants in the Enodis Corporation 401(k) Plan. 
The Manitowoc Retirement Savings Plan allows employees to make both pre- and post-tax elective deferrals, subject to certain limitations under the Tax Code.  The company also has the right to make the following additional contributions: (1) a matching contribution based upon individual employee deferrals; and (2) an additional discretionary or fixed company contribution.  Each participant in the Manitowoc Retirement Savings Plan is allowed to direct the investment of that participant’s account among a diverse mix of investment funds, including a company stock alternative.  To the extent that any funds are invested in company stock, that portion of the Manitowoc Retirement Savings Plan is an ESOP.
The company’s executives are not eligible to participate in the Manitowoc Retirement Savings Plan.  Company contributions to the plans are based upon formulas contained in the plans.  Total costs incurred under these plans were $6.1 million, $6.2 million and $4.1 million for the years ended December 31, 2014, 2013 and 2012, respectively.
Manitowoc Deferred Compensation Plan  The Manitowoc Deferred Compensation Plan is a non-tax-qualified supplemental deferred compensation plan for highly compensated and key management employees and for directors.  On December 31, 2009, the company merged the Enodis Corporation Supplemental Executive Retirement Plan, another defined contribution deferred compensation plan, with and into the Manitowoc Deferred Compensation Plan.  The company maintains the Manitowoc Deferred Compensation Plan to allow eligible individuals to save for retirement in a tax-efficient manner despite Tax Code restrictions that would otherwise impair their ability to do so under the Manitowoc 401(k) Retirement Plan.  The Manitowoc Deferred Compensation Plan also assists the company in retaining those key employees and directors.
The Manitowoc Deferred Compensation Plan accounts are credited with: (1) elective deferrals made at the request of the individual participant; and/or (2) a discretionary company contribution for each individual participant.  Although unfunded within the meaning of the Tax Code, the Manitowoc Deferred Compensation Plan utilizes a rabbi trust to hold assets intended to satisfy the company’s corresponding future benefit obligations.  Each participant in the Manitowoc Deferred Compensation Plan is credited with interest based upon individual elections from amongst a diverse mix of investment funds that are intended to reflect investment funds similar to those offered under the Manitowoc 401(k) Retirement Plan, including company stock.  Participants do not receive preferential or above-market rates of return under the Manitowoc Deferred Compensation Plan.
Plan participants are able to direct deferrals and company matching contributions into two separate investment programs, Program A and Program B.
The investment assets in Program A and B are held in two separate Deferred Compensation Plans, which restrict the company’s use and access to the funds, but which are also subject to the claims of the company’s general creditors in rabbi trusts.  Program A invests solely in the company’s stock; dividends paid on the company’s stock are automatically reinvested; and all distributions must be made in company stock.  Program B offers a variety of investment options but does not include company stock as an investment option.  All distributions from Program B must be made in cash.  Participants cannot transfer assets between programs.
Program A is accounted for as a plan that does not permit diversification.  As a result, the company stock held by Program A is classified in equity in a manner similar to accounting for treasury stock.  The deferred compensation obligation is classified as an equity instrument.  Changes in the fair value of the company’s stock and the compensation obligation are not recognized.  The asset and obligation for Program A were both $1.4 million at December 31, 2014 and $2.2 million at December 31, 2013. These amounts are offset in the Consolidated Statements of Stockholders’ Equity and Comprehensive Income.
Program B is accounted for as a plan that permits diversification.  As a result, the assets held by Program B are classified as an asset in the Consolidated Balance Sheets and changes in the fair value of the assets are recognized in earnings.  The deferred compensation obligation is classified as a liability in the Consolidated Balance Sheets and adjusted, with a charge or credit to compensation cost, to reflect changes in the fair value of the obligation.  The assets, which are included in other non-current assets, and obligation, which are included in other non-current liabilities, were both $16.5 million at December 31, 2014 and $15.4 million at December 31, 2013.  There was no net impact on the Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012.
Pension, Postretirement Health and Other Benefit Plans The company provides certain pension, health care and death benefits for eligible retirees and their dependents.  The pension benefits are funded, while the health care and death benefits are not funded but are paid as incurred.  Eligibility for coverage is based on meeting certain years of service and retirement qualifications.  These benefits may be subject to deductibles, co-payment provisions, and other limitations.  The company has reserved the right to modify these benefits. As of December 31, 2010, all of the remaining United States defined benefit plans were merged into a single plan: the Manitowoc U.S. Pension Plan. All merged plans had benefit accruals frozen prior to merger of plan.



The components of period benefit costs for the years ended December 31, 2014, 2013 and 2012 are as follows:
 
 
US Pension Plans
 
Non-US Pension Plans
 
Postretirement Health
and Other
(in millions)
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Service cost - benefits earned during the year
 
$

 
$

 
$

 
$
2.4

 
$
2.4

 
$
2.2

 
$
0.4

 
$
0.6

 
$
0.8

Interest cost of projected benefit obligation
 
10.3

 
9.6

 
10.2

 
11.3

 
9.8

 
10.2

 
2.1

 
2.0

 
2.8

Expected return on assets
 
(9.5
)
 
(10.2
)
 
(10.2
)
 
(9.4
)
 
(7.4
)
 
(8.2
)
 

 

 

Amortization of prior service cost
 

 

 

 
0.1

 
0.1

 
0.1

 
(0.3
)
 
(0.1
)
 

Amortization of actuarial net loss (gain)
 
2.9

 
3.5

 
2.9

 
1.5

 
1.9

 
0.8

 
(0.1
)
 

 
0.4

Curtailment gain recognized
 

 

 

 

 

 

 

 
(0.8
)
 

Settlement gain recognized
 

 

 

 

 

 
(1.6
)
 

 

 

Net periodic benefit cost
 
$
3.7

 
$
2.9

 
$
2.9

 
$
5.9

 
$
6.8

 
$
3.5

 
$
2.1

 
$
1.7

 
$
4.0

Weighted average assumptions:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.9
%
 
4.1
%
 
4.6
%
 
4.3
%
 
4.0
%
 
4.7
%
 
4.5
%
 
3.5
%
 
4.6
%
Expected return on plan assets
 
6.0
%
 
5.8
%
 
6.0
%
 
4.5
%
 
3.9
%
 
4.5
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
N/A

 
4.3
%
 
3.8
%
 
3.7
%
 
1.5
%
 
3.0
%
 
3.0
%
 
The prior service costs are amortized on a straight-line basis over the average remaining service period of active participants.  Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants.
To develop the expected long-term rate of return on assets assumptions, the company considered the historical returns and future expectations for returns in each asset class, as well as targeted asset allocation percentages within the pension portfolio.












The following is a reconciliation of the changes in benefit obligation, the changes in plan assets, and the funded status as of December 31, 2014 and 2013:
 
 
US Pension Plans
 
Non-US Pension Plans
 
Postretirement
Health
and Other
(in millions)
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Change in Benefit Obligation
 
 

 
 

 
 

 
 

 
 

 
 

Benefit obligation, beginning of year
 
$
213.7

 
$
241.4

 
$
263.2

 
$
255.0

 
$
48.5

 
$
57.5

Service cost
 

 

 
2.4

 
2.4

 
0.4

 
0.6

Interest cost
 
10.3

 
9.6

 
11.3

 
9.8

 
2.1

 
2.0

Participant contributions
 

 

 
0.1

 
0.1

 
2.3

 
2.6

Medicare subsidies received
 

 

 

 

 
0.4

 
0.4

Plan curtailments
 

 

 

 

 

 
(0.7
)
Plan settlements
 
1.7

 

 

 
(0.1
)
 

 

Plan amendments
 

 

 

 

 

 
(0.4
)
Net transfer out
 

 

 
(0.3
)
 
(0.3
)
 

 

Actuarial (gain) loss
 
30.2

 
(19.4
)
 
32.9

 
3.9

 
10.3

 
(7.2
)
Currency translation adjustment
 

 

 
(17.4
)
 
4.6

 
(0.1
)
 
(0.2
)
Benefits paid
 
(20.0
)
 
(17.9
)
 
(12.7
)
 
(12.2
)
 
(6.9
)
 
(6.1
)
Benefit obligation, end of year
 
$
235.9

 
$
213.7

 
$
279.5

 
$
263.2

 
$
57.0

 
$
48.5

Change in Plan Assets
 
 

 
 

 
 

 
 

 
 

 
 

Fair value of plan assets, beginning of year
 
$
162.6

 
$
180.6

 
$
211.1

 
$
199.5

 
$

 
$

Actual return on plan assets
 
16.1

 
(1.3
)
 
22.4

 
16.5

 

 

Employer contributions
 
1.3

 
1.2

 
4.8

 
4.2

 
4.2

 
3.1

Participant contributions
 

 

 
0.1

 
0.1

 
2.3

 
2.6

Medicare subsidies received
 

 

 

 

 
0.4

 
0.4

Plan settlements
 

 

 

 
(0.1
)
 

 

Currency translation adjustment
 

 

 
(11.7
)
 
3.5

 

 

Net transfer out
 

 

 

 
(0.4
)
 

 

Benefits paid
 
(20.0
)
 
(17.9
)
 
(12.7
)
 
(12.2
)
 
(6.9
)
 
(6.1
)
Fair value of plan assets, end of year
 
160.0

 
162.6

 
214.0

 
211.1

 

 

Funded status
 
$
(75.9
)
 
$
(51.1
)
 
$
(65.5
)
 
$
(52.1
)
 
$
(57.0
)
 
$
(48.5
)
Amounts recognized in the Consolidated Balance sheet at December 31
 
 

 
 

 
 

 
 

 
 

 
 

Pension asset
 
$

 
$

 
$

 
$
0.3

 
$

 
$

Pension obligation
 
(75.9
)
 
(51.1
)
 
(65.5
)
 
(52.4
)
 

 

Postretirement health and other benefit obligations
 

 

 

 

 
(57.0
)
 
(48.5
)
Net amount recognized
 
$
(75.9
)
 
$
(51.1
)
 
$
(65.5
)
 
$
(52.1
)
 
$
(57.0
)
 
$
(48.5
)
Weighted-Average Assumptions
 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.1
%
 
4.9
%
 
3.3
%
 
4.3
%
 
3.7
%
 
4.5
%
Expected return on plan assets
 
6.0
%
 
5.8
%
 
4.5
%
 
3.9
%
 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
3.9
%
 
4.3
%
 
1.5
%
 
1.5
%



Amounts recognized in accumulated other comprehensive income as of December 31, 2014 and 2013, consist of the following: 
 
 
Pensions
 
Postretirement
Health and Other
(in millions)
 
2014
 
2013
 
2014
 
2013
Net actuarial gain (loss)
 
$
(128.5
)
 
$
(93.4
)
 
$
(5.8
)
 
$
4.6

Prior service credit
 
(0.8
)
 
(1.0
)
 

 
0.3

Total amount recognized
 
$
(129.3
)
 
$
(94.4
)
 
$
(5.8
)
 
$
4.9


The amounts in accumulated other comprehensive income that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are $7.5 million for the pension plan and expense of $0.1 million for the postretirement health and other plans.
For measurement purposes, a 6.4% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014.  The rate was assumed to decrease gradually to 4.5% for 2027 and remain at that level thereafter.  Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans.  The following table summarizes the sensitivity of our December 31, 2014 retirement obligations and 2015 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions):
Change in assumption:
 
Estimated increase
(decrease) in 2015 pension
cost
 
Estimated increase
(decrease) in Projected
Benefit Obligation for the
year ended December 31,
2014
 
Estimated increase
(decrease) in 2015 Other
Postretirement Benefit
costs
 
Estimated increase
(decrease) in Other
Postretirement Benefit
Obligation for the year
ended December 31, 2014
0.50% increase in discount rate
 
$
(1.5
)
 
$
(31.7
)
 
$

 
$
(2.5
)
0.50% decrease in discount rate
 
2.2

 
37.5

 
0.2

 
2.7

0.50% increase in long-term return on assets
 
(1.8
)
 
N/A

 
N/A

 
N/A

0.50% decrease in long-term return on assets
 
1.8

 
N/A

 
N/A

 
N/A

1% increase in medical trend rates
 
N/A

 
N/A

 
0.9

 
5.0

1% decrease in medical trend rates
 
N/A

 
N/A

 
(0.4
)
 
(4.4
)

It is reasonably possible that the estimate for future retirement and health costs may change in the near future due to changes in the health care environment or changes in interest rates that may arise.  Presently, there is no reliable means to estimate the amount of any such potential changes.
The weighted-average asset allocations of the U.S. pension plans at December 31, 2014 and 2013, by asset category are as follows:
 
 
2014
 
2013
Equity
 
24.5
%
 
26.1
%
Fixed income
 
74.9
%
 
73.4
%
Other
 
0.6
%
 
0.5
%
 
 
100.0
%
 
100.0
%

The weighted-average asset allocations of the Non U.S. pension plans at December 31, 2014 and 2013, by asset category are as follows:
 
 
2014
 
2013
Equity
 
25.0
%
 
20.2
%
Fixed income
 
19.6
%
 
23.8
%
Other
 
55.4
%
 
56.0
%
 
 
100.0
%
 
100.0
%

The Board of Directors has established the Retirement Plan Committee (the “Committee”) to manage the operations and administration of all benefit plans and related trusts.  The Committee is committed to diversification to reduce the risk of large losses.  On a quarterly basis, the Committee reviews progress toward achieving the pension plans’ and individual managers’ performance objectives.
Investment Strategy The overall objective of the company's pension assets is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension fund. Specific investment objectives for our long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, achieving a competitive, total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified.
The company reviews its long-term, strategic asset allocations annually. The company uses various analytics to determine the optimal asset mix and consider plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns. The company identifies investment benchmarks for the asset classes in the strategic asset allocation that are market-based and investable where possible. 
Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions and the timing of benefit payments and contributions. The asset allocation is monitored and rebalanced on a monthly basis.
The actual allocations for the pension assets at December 31, 2014, and target allocations by asset class, are as follows:
 
Target Allocations
 
Weighted Average Asset Allocations
 
U.S. Plans
 
International Plans
 
U.S. Plans
 
International Plans
Equity Securities
25
%
 
0 - 25%
 
24.5
%
 
25.0
%
Debt Securities
75
%
 
0 - 100%
 
74.9
%
 
19.6
%
Other
%
 
0 - 100%
 
0.6
%
 
55.4
%

Risk Management In managing the plan assets, we review and manage risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability management and asset class diversification are central to our risk management approach and are integral to the overall investment strategy. Further, asset classes are constructed to achieve diversification by investment strategy, by investment manager, by industry or sector and by holding.  Investment manager guidelines for publicly traded assets are specified and are monitored regularly.
Fair Value Measurements The following table presents our plan assets using the fair value hierarchy as of December 31, 2014 and 2013.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.
 
 
December 31, 2014
Assets (in millions)
 
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable Inputs
(Level 3)
 
Total
Cash
 
$
1.7

 
$

 
$

 
$
1.7

Insurance group annuity contracts
 

 

 
117.7

 
117.7

Common/collective trust funds — Government debt
 

 

 

 

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

 
47.5

 

 
47.5

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

 
109.9

 

 
109.9

Common/collective trust funds — Corporate equity
 

 
92.9

 

 
92.9

Common/collective trust funds — Customized strategy
 

 
4.3

 

 
4.3

Total
 
$
1.7

 
$
254.6

 
$
117.7

 
$
374.0

 
 
December 31, 2013
Assets (in millions)
 
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable Inputs
(Level 3)
 
Total
Cash
 
$
1.7

 
$

 
$

 
$
1.7

Insurance group annuity contracts
 

 

 
118.3

 
118.3

Common/collective trust funds — Government debt
 

 
3.0

 

 
3.0

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

 
49.6

 

 
49.6

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

 
111.6

 

 
111.6

Common/collective trust funds — Corporate equity
 

 
84.3

 

 
84.3

Common/collective trust funds — Customized strategy
 

 
5.2

 

 
5.2

Total
 
$
1.7

 
$
253.7

 
$
118.3

 
$
373.7


Cash equivalents and other short-term investments, which are used to pay benefits, are primarily held in registered money market funds which are valued using a market approach based on the quoted market prices of identical instruments. Other cash equivalent and short-term investments are valued daily by the fund using a market approach with inputs that include quoted market prices for similar instruments. 
Insurance group annuity contracts are valued at the present value of the future benefit payments owed by the insurance company to the Plans’ participants.
Common/collective funds are typically common or collective trusts valued at their net asset values (NAVs) that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity.




A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows:
 
 
Insurance Contracts
Year Ended December 31,
(in millions)
 
2014
 
2013
Beginning Balance
 
$
118.3

 
$
111.1

Actual return on assets
 
12.7

 
12.1

Benefit payments
 
(7.1
)
 
(6.8
)
Foreign currency impact
 
(6.2
)
 
1.9

Ending Balance
 
$
117.7

 
$
118.3


The expected 2015 contributions for the U.S. pension plans are as follows: the minimum contribution for 2015 is $1.4 million; and no planned discretionary or non-cash contributions.  The expected 2015 contributions for the non-U.S. pension plans are as follows: the minimum contribution for 2015 is $4.7 million; and no planned discretionary or non-cash contributions.  Expected company paid claims for the postretirement health and life insurance plans are $4.4 million for 2015.  Projected benefit payments from the plans as of December 31, 2014 are estimated as follows:
(in millions)
 
U.S Pension Plans
 
Non-U.S. Pension
Plans
 
Postretirement
Health and Other
2015
 
$
12.3

 
$
12.7

 
$
4.4

2016
 
12.8

 
13.2

 
4.5

2017
 
13.2

 
14.3

 
4.6

2018
 
13.7

 
14.7

 
4.9

2019
 
14.1

 
15.5

 
4.9

2020 — 2024
 
73.4

 
89.1

 
21.4


The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2014 and 2013 is as follows:
 
 
U.S Pension Plans
 
Non U.S. Pension Plans
(in millions)
 
2014
 
2013
 
2014
 
2013
Projected benefit obligation
 
$
235.9

 
$
213.7

 
$
274.8

 
$
259.4

Accumulated benefit obligation
 
235.9

 
213.7

 
269.9

 
254.2

Fair value of plan assets
 
160.0

 
162.6

 
210.1

 
206.9


The accumulated benefit obligation for all U.S. pension plans as of December 31, 2014 and 2013 was $235.9 million and $213.7 million, respectively.  The accumulated benefit obligation for all non-U.S. pension plans as of December 31, 2014 and 2013 was $272.9 million and $256.7 million, respectively.
The measurement date for all plans is December 31, 2014.
The company also maintains a target benefit plan for certain executive officers of the company.  Expenses related to the plan in the amount of $2.4 million, $2.9 million and $3.3 million were recorded in 2014, 2013, and 2012, respectively.  Amounts accrued as of December 31, 2014 and 2013 related to this plan were $25.7 million and $24.8 million, respectively.
The company, through its Lincoln Foodservice operation, participated in a multiemployer defined benefit pension plan under a collective bargaining agreement that covered certain of its union-represented employees. In 2013, with the finalization of the reorganization and plant restructuring that affected the Lincoln Foodservice operation, the company was deemed to have effectively withdrawn its participation in the multiemployer defined benefit pension plan in 2013.  This withdrawal obligation was previously recognized in our financial statements as part of the restructuring activities that were undertaken in connection with the 2008 acquisition of Enodis.  The present value of the obligation is part of the restructuring accrual in our balance sheet.  The withdrawal obligation ($14.2 million as of December 31, 2014) is payable in 48 quarterly installments of $0.5 million through April 2025.
The contributions by the company to the multiemployer plan for the years ended December 31, 2014, 2013 and 2012 are as follows:
 (in millions)
 
 
 
 
 
Contributions by Manitowoc
Pension Fund
 
EIN / Pension Plan
Number
 
 
 
2014
 
2013
 
2012
Sheet Metal Workers’ National Pension Fund
 
52-6112463 / 001
 
 
 
$

 
$
0.3

 
$
0.9

 
 
 
 
Total Contributions
 
$

 
$
0.3

 
$
0.9

Leases
Leases
Leases
The company leases various property, plant and equipment.  Terms of the leases vary, but generally require the company to pay property taxes, insurance premiums, and maintenance costs associated with the leased property.  Rental expense attributed to operating leases was $34.8 million, $34.3 million and $38.1 million in 2014, 2013 and 2012, respectively. 
Future minimum rental obligations under non-cancelable operating leases, as of December 31, 2014, are payable as follows:
(in millions)
 
2015
$
42.4

2016
33.5

2017
23.3

2018
17.0

2019
14.9

Thereafter
23.3

Total
$
154.4

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 the company’s reportable segments. 
The Crane business is a global provider of engineered lift solutions which designs, manufactures and markets a comprehensive line of lattice-boom crawler cranes, mobile telescopic cranes, tower cranes and boom trucks.  The Crane products are used in a wide variety of applications, including energy, petrochemical and industrial projects, infrastructure development such as road, bridge and airport construction, and commercial and high-rise residential construction. Our crane-related product support services are principally marketed under the Manitowoc Crane Care brand name and include maintenance and repair services and parts supply.
The Foodservice equipment business designs, manufactures and sells refrigeration, ice-making, cooking, holding, food-preparation, and beverage-dispensing equipment.  Our suite of products is used by commercial and institutional foodservice operators such as full service restaurants, QSR chains, hotels, industrial caterers, supermarkets, convenience stores, hospitals, schools and other institutions.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that certain expenses are not allocated to the segments.  These unallocated expenses are corporate overhead, stock-based compensation expense, amortization expense of intangible assets with definite lives, goodwill impairment, intangible asset impairment, asset impairment expense, restructuring expense, and other non-operating expenses.  The company evaluates segment performance based upon profit and loss before the aforementioned expenses.  Financial information relating to the company’s reportable segments for the years ended December 31, 2014, 2013 and 2012 is as follows: 
(in millions)
 
2014
 
2013
 
2012
Net sales from continuing operations:
 
 

 
 

 
 

Crane
 
$
2,305.2

 
$
2,506.3

 
$
2,427.1

Foodservice
 
1,581.3

 
1,541.8

 
1,486.2

Total
 
$
3,886.5

 
$
4,048.1

 
$
3,913.3

Operating earnings (loss) from continuing operations:
 
 

 
 

 
 

Crane
 
$
163.9

 
$
218.8

 
$
170.5

Foodservice
 
234.0

 
250.3

 
238.6

Corporate
 
(53.4
)
 
(64.9
)
 
(63.7
)
Asset impairment expense
 
(1.1
)
 

 

Amortization expense
 
(35.1
)
 
(35.3
)
 
(36.5
)
Restructuring expense
 
(9.0
)
 
(4.8
)
 
(9.5
)
Other (expense) income
 
(0.5
)
 
0.3

 
(2.5
)
Operating earnings from continuing operations
 
$
298.8

 
$
364.4

 
$
296.9

Other income (expense):
 
 
 
 
 
 
Interest expense
 
$
(94.0
)
 
$
(128.4
)
 
$
(135.6
)
Amortization of deferred financing fees
 
(4.4
)
 
(7.0
)
 
(8.2
)
Loss on debt extinguishment
 
(25.5
)
 
(3.0
)
 
(6.3
)
Other (expense) income - net
 
(5.5
)
 
(0.8
)
 
0.1

Earnings from continuing operations before taxes on earnings
 
$
169.4

 
$
225.2

 
$
146.9

 
 
 
 
 
 
 
Capital expenditures:
 
 

 
 

 
 

Crane
 
$
57.3

 
$
69.3

 
$
52.7

Foodservice
 
25.3

 
33.6

 
17.4

Corporate
 
2.2

 
7.8

 
2.8

Total
 
$
84.8

 
$
110.7

 
$
72.9

Total depreciation:
 
 

 
 

 
 

Crane
 
$
45.7

 
$
46.9

 
$
43.5

Foodservice
 
21.2

 
20.1

 
22.3

Corporate
 
1.5

 
1.5

 
2.3

Total
 
$
68.4

 
$
68.5

 
$
68.1

Total assets:
 
 

 
 

 
 

Crane
 
$
1,742.3

 
$
1,900.4

 
$
1,903.3

Foodservice
 
1,902.0

 
1,904.3

 
1,956.8

Corporate
 
172.3

 
171.9

 
197.2

Total
 
$
3,816.6

 
$
3,976.6

 
$
4,057.3

 

Net sales are attributed to geographic regions based on location of customer. Net sales from continuing operations and long-lived asset information by geographic area as of and for the years ended December 31 are as follows:
 
 
Net Sales
 
Long-Lived Assets
(in millions)
 
2014
 
2013
 
2012
 
2014
 
2013
United States
 
$
1,977.4

 
$
1,978.0

 
$
1,833.0

 
$
1,880.8

 
$
1,888.4

Other North America
 
238.3

 
292.1

 
278.2

 
12.4

 
13.6

Europe
 
821.2

 
937.6

 
788.0

 
478.9

 
530.0

Asia
 
377.6

 
364.5

 
354.0

 
189.7

 
203.0

Middle East
 
223.2

 
174.2

 
161.6

 
1.5

 
1.6

Central and South America
 
106.9

 
166.9

 
243.0

 
30.0

 
36.0

Africa
 
56.7

 
30.0

 
110.8

 

 

South Pacific and Caribbean
 
13.3

 
12.6

 
10.6

 
4.0

 
4.1

Australia
 
71.9

 
92.2

 
134.1

 
3.0

 
4.7

Total
 
$
3,886.5

 
$
4,048.1

 
$
3,913.3

 
$
2,600.3

 
$
2,681.4


Net sales from continuing operations and long-lived asset information for Europe primarily relate to France, Germany and the United Kingdom.
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022
Subsidiary Guarantors of Senior Notes due 2020 and Senior Notes due 2022
The following tables present condensed consolidating financial information for (a) The Manitowoc Company, Inc. (Parent); (b) the guarantors of the Senior Notes due 2020 and the Senior Notes due 2022 which include substantially all of the domestic, 100% owned subsidiaries of the company (Subsidiary Guarantors); and (c) the wholly and partially owned foreign subsidiaries of the Parent, which do not guarantee the Senior Notes due 2020 and the Senior Notes due 2022 (Non-Guarantor Subsidiaries).  Separate financial statements of the Subsidiary Guarantors are not presented because the guarantors are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions.
The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2014
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
2,424.5

 
$
2,076.1

 
$
(614.1
)
 
$
3,886.5

Costs and expenses:
 

 
 

 
 

 
 

 
 

Cost of sales

 
1,889.9

 
1,624.6

 
(614.1
)
 
2,900.4

Engineering, selling and administrative expenses
49.8

 
287.4

 
304.4

 

 
641.6

Asset impairment expense

 
1.1

 

 

 
1.1

Amortization expense

 
29.6

 
5.5

 

 
35.1

Restructuring expense

 
3.0

 
6.0

 

 
9.0

Other expense

 
0.3

 
0.2

 

 
0.5

Equity in (earnings) loss of subsidiaries
(165.6
)
 
(73.5
)
 

 
239.1

 

Total costs and expenses
(115.8
)
 
2,137.8

 
1,940.7

 
(375.0
)
 
3,587.7

Operating earnings (loss) from continuing operations
115.8

 
286.7

 
135.4

 
(239.1
)
 
298.8

Other (expense) income :
 

 
 

 
 

 
 

 
 

Interest expense
(83.8
)
 
(1.9
)
 
(8.3
)
 

 
(94.0
)
Amortization of deferred financing fees
(4.4
)
 

 

 

 
(4.4
)
Loss on debt extinguishment
(25.5
)
 

 

 

 
(25.5
)
Management fee income (expense)
62.4

 
(72.6
)
 
10.2

 

 

Other income (expense) - net
16.5

 
59.2

 
(0.5
)
 
(80.7
)
 
(5.5
)
Total other (expense) income
(34.8
)
 
(15.3
)
 
1.4

 
(80.7
)
 
(129.4
)
Earnings (loss) from continuing operations before taxes on earnings
81.0

 
271.4

 
136.8

 
(319.8
)
 
169.4

(Benefit) provision for taxes on earnings
(63.5
)
 
45.3

 
26.8

 

 
8.6

Earnings (loss) from continuing operations
144.5

 
226.1

 
110.0

 
(319.8
)
 
160.8

Discontinued operations:
 

 
 

 
 

 
 

 
 

Loss from discontinued operations, net of income taxes

 
(0.5
)
 
(0.9
)
 

 
(1.4
)
Loss on sale of discontinued operations, net of income taxes

 

 
(11.0
)
 

 
(11.0
)
Net earnings (loss)
144.5

 
225.6

 
98.1

 
(319.8
)
 
148.4

Less: Net earnings attributable to noncontrolling interest

 

 
3.9

 

 
3.9

Net earnings (loss) attributable to Manitowoc
$
144.5

 
$
225.6

 
$
94.2

 
$
(319.8
)
 
$
144.5

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to Manitowoc
$
20.9

 
$
217.8

 
$
86.0

 
$
(303.8
)
 
$
20.9


The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2013
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
2,631.3

 
$
2,097.1

 
$
(680.3
)
 
$
4,048.1

Costs and expenses:
 

 
 

 
 

 
 

 
 

Cost of sales

 
2,038.1

 
1,668.5

 
(680.3
)
 
3,026.3

Engineering, selling and administrative expenses
61.4

 
259.5

 
296.7

 

 
617.6

Amortization expense

 
29.6

 
5.7

 

 
35.3

Restructuring expense

 
0.7

 
4.1

 

 
4.8

Other expense (income)

 
0.5

 
(0.8
)
 

 
(0.3
)
Equity in (earnings) loss of subsidiaries
(199.6
)
 
(32.5
)
 

 
232.1

 

Total costs and expenses
(138.2
)
 
2,295.9

 
1,974.2

 
(448.2
)
 
3,683.7

Operating earnings (loss) from continuing operations
138.2

 
335.4

 
122.9

 
(232.1
)
 
364.4

Other (expense) income:
 

 
 

 
 

 
 

 
 

Interest expense
(118.8
)
 
(1.0
)
 
(8.6
)
 

 
(128.4
)
Amortization of deferred financing fees
(7.0
)
 

 

 

 
(7.0
)
Loss on debt extinguishment
(3.0
)
 

 

 

 
(3.0
)
Management fee income (expense)
59.6

 
(77.1
)
 
17.5

 

 

Other (expense) income - net
(3.6
)
 
(32.6
)
 
35.4

 

 
(0.8
)
Total other (expense) income
(72.8
)
 
(110.7
)
 
44.3

 

 
(139.2
)
Earnings (loss) from continuing operations before taxes on earnings
65.4

 
224.7

 
167.2

 
(232.1
)
 
225.2

(Benefit) provision for taxes on earnings
(76.4
)
 
69.3

 
43.2

 

 
36.1

Earnings (loss) from continuing operations
141.8

 
155.4

 
124.0

 
(232.1
)
 
189.1

Discontinued operations:
 

 
 

 
 

 
 

 
 

Loss from discontinued operations, net of income taxes

 
(2.3
)
 
(16.5
)
 

 
(18.8
)
Loss on sale of discontinued operations, net of income taxes

 

 
(2.7
)
 

 
(2.7
)
Net earnings (loss)
141.8

 
153.1

 
104.8

 
(232.1
)
 
167.6

Less: Net earnings attributable to noncontrolling interest

 

 
25.8

 

 
25.8

Net earnings (loss) attributable to Manitowoc
$
141.8

 
$
153.1

 
$
79.0

 
$
(232.1
)
 
$
141.8

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to Manitowoc
$
164.3

 
$
154.1

 
$
62.9

 
$
(217.0
)
 
$
164.3


The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2012
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
2,616.4

 
$
1,959.0

 
$
(662.1
)
 
$
3,913.3

Costs and expenses:
 

 
 

 
 

 
 

 
 

Cost of sales

 
2,022.3

 
1,610.1

 
(662.1
)
 
2,970.3

Engineering, selling and administrative expenses
61.2

 
247.6

 
288.8

 

 
597.6

Amortization expense

 
29.9

 
6.6

 

 
36.5

Restructuring expense

 
0.7

 
8.8

 

 
9.5

Other expense

 
2.5

 

 

 
2.5

Equity in (earnings) loss of subsidiaries
(167.2
)
 
(36.0
)
 

 
203.2

 

Total costs and expenses
(106.0
)
 
2,267.0

 
1,914.3

 
(458.9
)
 
3,616.4

Operating earnings (loss) from continuing operations
106.0

 
349.4

 
44.7

 
(203.2
)
 
296.9

Other (expense) income:
 

 
 

 
 

 
 

 
 

Interest expense
(122.9
)
 
(2.1
)
 
(10.6
)
 

 
(135.6
)
Amortization of deferred financing fees
(8.2
)
 

 

 

 
(8.2
)
Loss on debt extinguishment
(6.3
)
 

 

 

 
(6.3
)
Management fee income (expense)
60.1

 
(77.8
)
 
17.7

 

 

Other income (expense) - net
16.5

 
(45.9
)
 
29.5

 

 
0.1

Total other (expense) income
(60.8
)
 
(125.8
)
 
36.6

 

 
(150.0
)
Earnings (loss) from continuing operations before taxes on earnings
45.2

 
223.6

 
81.3

 
(203.2
)
 
146.9

(Benefit) provision for taxes on earnings
(56.5
)
 
69.2

 
25.3

 

 
38.0

Earnings (loss) from continuing operations
101.7

 
154.4

 
56.0

 
(203.2
)
 
108.9

Discontinued operations:
 

 
 

 
 

 
 

 
 

Loss from discontinued operations, net of income taxes

 
(0.9
)
 
(15.4
)
 

 
(16.3
)
Net earnings (loss)
101.7

 
153.5

 
40.6

 
(203.2
)
 
92.6

Less: Net loss attributable to noncontrolling interest

 

 
(9.1
)
 

 
(9.1
)
Net earnings (loss) attributable to Manitowoc
$
101.7

 
$
153.5

 
$
49.7

 
$
(203.2
)
 
$
101.7

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to Manitowoc
$
97.1

 
$
153.7

 
$
51.9

 
$
(205.6
)
 
$
97.1

The Manitowoc Company, Inc.
Condensed Consolidating Balance Sheet
as of December 31, 2014
(In millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 

 
 

 
 

 
 

 
 

Current Assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
1.6

 
$
3.3

 
$
63.1

 
$

 
$
68.0

Restricted cash
2.8

 

 
20.9

 

 
23.7

Accounts receivable — net
0.1

 

 
233.6

 
(6.3
)
 
227.4

Intercompany short term note receivable

 

 
201.7

 
(201.7
)
 

Intercompany interest receivable
41.5

 
3.2

 

 
(44.7
)
 

Inventories — net

 
306.3

 
338.2

 

 
644.5

Deferred income taxes
67.1

 

 
4.2

 

 
71.3

Other current assets
3.6

 
6.7

 
140.9

 

 
151.2

Current assets of discontinued operation

 

 

 

 

Total current assets
116.7

 
319.5

 
1,002.6

 
(252.7
)
 
1,186.1

Property, plant and equipment — net
7.7

 
325.8

 
257.5

 

 
591.0

Goodwill

 
960.5

 
237.6

 

 
1,198.1

Other intangible assets — net

 
561.6

 
153.1

 

 
714.7

Intercompany long-term notes receivable
892.5

 
195.3

 
851.3

 
(1,939.1
)
 

Intercompany accounts receivable

 
1,619.7

 
796.8

 
(2,416.5
)
 

Other non-current assets
66.7

 
3.1

 
56.9

 

 
126.7

Long-term assets of discontinued operation

 

 

 

 

Investment in affiliates
4,423.6

 
3,629.4

 

 
(8,053.0
)
 

Total assets
$
5,507.2

 
$
7,614.9

 
$
3,355.8

 
$
(12,661.3
)
 
$
3,816.6

Liabilities and Equity
 

 
 

 
 

 
 

 
 

Current Liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable and accrued expenses
$
27.1

 
$
420.8

 
$
365.8

 
$
(6.3
)
 
$
807.4

Short-term borrowings and current portion of long-term debt
24.1

 
2.8

 
53.4

 

 
80.3

Intercompany short term note payable
201.7

 

 

 
(201.7
)
 

Intercompany interest payable
3.2

 

 
41.5

 
(44.7
)
 

Product warranties

 
45.2

 
32.5

 

 
77.7

Customer advances

 
7.3

 
14.0

 

 
21.3

Product liabilities

 
22.1

 
2.5

 

 
24.6

Current liabilities of discontinued operation

 

 

 

 

Total current liabilities
256.1

 
498.2

 
509.7

 
(252.7
)
 
1,011.3

Non-Current Liabilities:
 

 
 

 
 

 
 

 
 

Long-term debt, less current portion
1,393.0

 
25.3

 
24.9

 

 
1,443.2

Deferred income taxes
165.2

 

 
21.0

 

 
186.2

Pension obligations
129.1

 
7.9

 
4.0

 

 
141.0

Postretirement health and other benefit obligations
49.5

 
2.1

 
1.5

 

 
53.1

Long-term deferred revenue

 
10.7

 
27.2

 

 
37.9

Intercompany long-term note payable
191.0

 
813.5

 
934.6

 
(1,939.1
)
 

Intercompany accounts payable
2,416.5

 

 

 
(2,416.5
)
 

Other non-current liabilities
82.7

 
11.5

 
25.6

 

 
119.8

Long-term liabilities of discontinued operation

 

 

 

 

Total non-current liabilities
4,427.0

 
871.0

 
1,038.8

 
(4,355.6
)
 
1,981.2

Equity
 

 
 

 
 

 
 

 
 

Manitowoc stockholders’ equity
824.1

 
6,245.7

 
1,807.3

 
(8,053.0
)
 
824.1

Noncontrolling interest

 

 

 

 

Total equity
824.1

 
6,245.7

 
1,807.3

 
(8,053.0
)
 
824.1

Total liabilities and equity
$
5,507.2

 
$
7,614.9

 
$
3,355.8

 
$
(12,661.3
)
 
$
3,816.6

The Manitowoc Company, Inc.
Condensed Consolidating Balance Sheet
as of December 31, 2013
(In millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 

 
 

 
 

 
 

 
 

Current Assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
1.2

 
$
3.3

 
$
50.4

 
$

 
$
54.9

Restricted cash
2.8

 

 
10.0

 

 
12.8

Accounts receivable — net
0.2

 
16.5

 
238.8

 

 
255.5

Intercompany short term note receivable

 

 
112.1

 
(112.1
)
 

Intercompany interest receivable
18.4

 
3.2

 

 
(21.6
)
 

Inventories — net

 
333.4

 
387.4

 

 
720.8

Deferred income taxes
73.2

 

 
16.7

 

 
89.9

Other current assets
3.4

 
5.9

 
104.6

 

 
113.9

Current assets of discontinued operations

 

 
15.1

 

 
15.1

Total current assets
99.2

 
362.3

 
935.1

 
(133.7
)
 
1,262.9

Property, plant and equipment — net
6.3

 
291.9

 
280.6

 

 
578.8

Goodwill

 
960.5

 
258.1

 

 
1,218.6

Other intangible assets — net

 
591.3

 
174.9

 

 
766.2

Intercompany long-term notes receivable
964.4

 
158.5

 
903.7

 
(2,026.6
)
 

Intercompany accounts receivable

 
1,565.2

 
1,848.8

 
(3,414.0
)
 

Other non-current assets
42.9

 
3.4

 
80.5

 

 
126.8

Long-term assets of discontinued operations

 

 
23.3

 

 
23.3

Investment in affiliates
5,356.2

 
3,505.6

 

 
(8,861.8
)
 

Total assets
$
6,469.0

 
$
7,438.7

 
$
4,505.0

 
$
(14,436.1
)
 
$
3,976.6

Liabilities and Equity
 

 
 

 
 

 
 

 
 

Current Liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable and accrued expenses
$
108.1

 
$
404.2

 
$
423.3

 
$

 
$
935.6

Short-term borrowings and current portion of long-term debt

 
0.7

 
22.0

 

 
22.7

Intercompany short-term note payable
112.1

 

 

 
(112.1
)
 

Intercompany interest payable
3.2

 

 
18.4

 
(21.6
)
 

Product warranties

 
47.3

 
33.8

 

 
81.1

Customer advances

 
12.9

 
22.0

 

 
34.9

Product liabilities

 
21.2

 
3.8

 

 
25.0

Current liabilities of discontinued operations

 

 
26.1

 

 
26.1

Total current liabilities
223.4

 
486.3

 
549.4

 
(133.7
)
 
1,125.4

Non-Current Liabilities:
 

 
 

 
 

 
 

 
 

Long-term debt, less current portion
1,474.7

 
2.2

 
27.2

 

 
1,504.1

Deferred income taxes
165.2

 

 
49.1

 

 
214.3

Pension obligations
91.0

 
6.4

 
4.1

 

 
101.5

Postretirement health and other benefit obligations
40.6

 
2.1

 
2.0

 

 
44.7

Long-term deferred revenue

 
9.2

 
28.4

 

 
37.6

Intercompany long-term note payable
183.3

 
832.2

 
1,011.1

 
(2,026.6
)
 

Intercompany accounts payable
3,414.0

 

 

 
(3,414.0
)
 

Other non-current liabilities
101.3

 
15.6

 
47.6

 

 
164.5

Long-term liabilities of discontinued operations

 

 
2.2

 

 
2.2

Total non-current liabilities
5,470.1

 
867.7

 
1,171.7

 
(5,440.6
)
 
2,068.9

Equity
 

 
 

 
 

 
 

 
 

Manitowoc stockholders’ equity
775.5

 
6,084.7

 
2,777.1

 
(8,861.8
)
 
775.5

Noncontrolling interest

 

 
6.8

 

 
6.8

Total equity
775.5

 
6,084.7

 
2,783.9

 
(8,861.8
)
 
782.3

Total liabilities and equity
$
6,469.0

 
$
7,438.7

 
$
4,505.0

 
$
(14,436.1
)
 
$
3,976.6

The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2014
(In millions)
 
 
Parent
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash (used for) provided by operating activities of continuing operations
$
(124.3
)
 
$
243.4

 
$
67.0

 
$
(80.7
)
 
$
105.4

Cash used for operating activities of discontinued operations

 
(0.4
)
 
(6.7
)
 

 
(7.1
)
Net cash (used for) provided by operating activities
$
(124.3
)
 
$
243.0

 
$
60.3

 
$
(80.7
)
 
$
98.3

Cash Flows from Investing:
 

 
 

 
 

 
 

 
 

Capital expenditures
$
(2.2
)
 
$
(51.3
)
 
$
(31.3
)
 
$

 
$
(84.8
)
Proceeds from sale of property, plant and equipment

 
0.1

 
12.7

 

 
12.8

Restricted cash

 

 
(11.6
)
 

 
(11.6
)
Intercompany investments
77.4

 
(213.9
)
 
118.8

 
17.7

 

Net cash provided by (used for) investing activities
$
75.2

 
$
(265.1
)
 
$
88.6

 
$
17.7

 
$
(83.6
)
Cash Flows from Financing:
 

 
 

 
 

 
 

 
 

Payments on long-term debt
$
(607.7
)
 
$
(1.7
)
 
$
(29.3
)
 
$

 
$
(638.7
)
Proceeds from long-term debt
550.0

 
26.8

 
63.5

 

 
640.3

Payments on notes financing—net

 

 
(0.3
)
 

 
(0.3
)
Debt issue costs
(5.2
)
 

 

 

 
(5.2
)
Dividends paid
(10.8
)
 

 
(80.7
)
 
80.7

 
(10.8
)
Exercises of stock options including windfall tax benefits
25.9

 

 

 

 
25.9

Intercompany financing
97.3

 
(3.0
)
 
(76.6
)
 
(17.7
)
 

Net cash provided by (used for) financing activities of continuing operations
$
49.5

 
$
22.1

 
$
(123.4
)
 
$
63.0

 
$
11.2

Net cash used for financing activities of discontinued operations
$

 
$

 
$
(7.2
)
 
$

 
$
(7.2
)
Net cash provided by (used for) financing activities
$
49.5

 
$
22.1

 
$
(130.6
)
 
$
63.0

 
$
4.0

Effect of exchange rate changes on cash

 

 
(5.6
)
 

 
(5.6
)
Net increase in cash and cash equivalents
0.4

 

 
12.7

 

 
13.1

Balance at beginning of period
1.2

 
3.3

 
50.4

 

 
54.9

Balance at end of period
$
1.6

 
$
3.3

 
$
63.1

 
$

 
$
68.0

The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2013
(In millions)
 
 
Parent
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash (used for) provided by operating activities of continuing operations
$
(51.6
)
 
$
224.9

 
$
160.8

 
$

 
$
334.1

Cash used for operating activities of discontinued operations

 
(2.3
)
 
(8.7
)
 

 
(11.0
)
Net cash (used for) provided by operating activities
$
(51.6
)
 
$
222.6

 
$
152.1

 
$

 
$
323.1

Cash Flows from Investing:
 

 
 

 
 

 
 

 
 

Capital expenditures
$
(0.8
)
 
$
(57.4
)
 
$
(52.5
)
 
$

 
$
(110.7
)
Proceeds from sale of property, plant and equipment

 
2.0

 
2.1

 

 
4.1

Restricted cash
2.6

 

 
(4.6
)
 

 
(2.0
)
Business acquisitions, net of cash acquired

 

 
(12.2
)
 

 
(12.2
)
Proceeds from sale of business

 

 
39.2

 

 
39.2

Intercompany investments
197.1

 
(167.2
)
 
(169.3
)
 
139.4

 

Net cash provided by (used for) investing activities of continuing operations
198.9

 
(222.6
)
 
(197.3
)
 
139.4

 
(81.6
)
Net cash used for investing activities of discontinued operations

 

 
(0.6
)
 

 
(0.6
)
Net cash provided by (used for) investing activities
$
198.9

 
$
(222.6
)
 
$
(197.9
)
 
$
139.4

 
$
(82.2
)
Cash Flows from Financing:
 

 
 

 
 

 
 

 
 

Payments on long-term debt
$
(220.6
)
 
$
(0.7
)
 
$
(45.2
)
 
$

 
$
(266.5
)
Proceeds from long-term debt

 

 
43.0

 

 
43.0

(Payments on) proceeds from revolving credit facility—net
(34.5
)
 

 
0.1

 

 
(34.4
)
Proceeds from notes financing—net

 

 
6.6

 

 
6.6

Debt issue costs
(1.1
)
 

 

 

 
(1.1
)
Dividends paid
(10.7
)
 

 

 

 
(10.7
)
Exercises of stock options including windfall tax benefits
6.7

 

 

 

 
6.7

Intercompany financing
102.1

 

 
37.3

 
(139.4
)
 

Net cash (used for) provided by financing activities
$
(158.1
)
 
$
(0.7
)
 
$
41.8

 
$
(139.4
)
 
$
(256.4
)
Effect of exchange rate changes on cash

 

 
(2.8
)
 

 
(2.8
)
Net decrease in cash and cash equivalents
(10.8
)
 
(0.7
)
 
(6.8
)
 

 
(18.3
)
Balance at beginning of period
12.0

 
4.0

 
57.2

 

 
73.2

Balance at end of period
$
1.2

 
$
3.3

 
$
50.4

 
$

 
$
54.9


The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2012
(In millions)
 
 
Parent
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash (used for) provided by operating activities of continuing operations
$
(22.8
)
 
$
167.4

 
$
30.7

 
$

 
$
175.3

Cash used for operating activities of discontinued operations

 
(0.9
)
 
(12.0
)
 

 
(12.9
)
Net cash (used for) provided by operating activities
$
(22.8
)
 
$
166.5

 
$
18.7

 
$

 
$
162.4

Cash Flows from Investing:
 

 
 

 
 

 
 

 
 

Capital expenditures
$
(1.4
)
 
$
(36.5
)
 
$
(35.0
)
 
$

 
$
(72.9
)
Proceeds from sale of property, plant and equipment

 

 
0.8

 

 
0.8

Restricted cash
1.0

 

 
(4.3
)
 

 
(3.3
)
Intercompany investments
131.4

 
(175.4
)
 
(4.8
)
 
48.8

 

Net cash provided by (used for) investing activities of continuing operations
131.0

 
(211.9
)
 
(43.3
)
 
48.8

 
(75.4
)
Net cash used for investing activities of discontinued operations

 

 
(0.1
)
 

 
(0.1
)
Net cash provided by (used for) investing activities
$
131.0

 
$
(211.9
)
 
$
(43.4
)
 
$
48.8

 
$
(75.5
)
Cash Flows from Financing:
 

 
 

 
 

 
 

 
 

Payments on long-term debt
$
(439.7
)
 
$
(0.7
)
 
$
(55.0
)
 
$

 
$
(495.4
)
Proceeds from long-term debt
300.0

 

 
83.3

 

 
383.3

Proceeds from revolving credit facility—net
34.4

 

 

 

 
34.4

Payments on notes financing—net

 
(2.1
)
 
(8.3
)
 

 
(10.4
)
Proceeds from swap monetization
14.8

 

 

 

 
14.8

Debt issue costs
(5.7
)
 

 

 

 
(5.7
)
Dividends paid
(10.6
)
 

 

 

 
(10.6
)
Exercises of stock options including windfall tax benefits
6.4

 

 

 

 
6.4

Intercompany financing

 
43.7

 
5.1

 
(48.8
)
 

Net cash (provided by) used for financing activities
$
(100.4
)
 
$
40.9

 
$
25.1

 
$
(48.8
)
 
$
(83.2
)
Effect of exchange rate changes on cash

 

 
1.2

 

 
1.2

Net increase (decrease) in cash and cash equivalents
7.8

 
(4.5
)
 
1.6

 

 
4.9

Balance at beginning of period
4.2

 
8.5

 
55.6

 

 
68.3

Balance at end of period
$
12.0

 
$
4.0

 
$
57.2

 
$

 
$
73.2

Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
The following table presents quarterly financial data for 2014 and 2013:
 
 
2014
 
2013
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
 
First
 
Second
 
Third
 
Fourth
Net sales
 
$
850.0

 
$
1,012.8

 
$
986.3

 
$
1,037.4

 
$
894.6

 
$
1,037.1

 
$
1,012.1

 
$
1,104.3

Gross profit
 
227.1

 
272.3

 
245.2

 
241.5

 
222.1

 
276.0

 
262.1

 
261.6

Earnings from continuing operations before taxes on earnings
 
8.6

 
66.1

 
56.3

 
38.4

 
22.3

 
71.4

 
70.8

 
60.7

Discontinued operations:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

(Loss) earnings from discontinued operations, net of income taxes
 
(1.0
)
 
(0.3
)
 
(0.2
)
 
0.1

 
(4.1
)
 
(7.6
)
 
(3.2
)
 
(3.9
)
Loss on sale of discontinued operations, net of income taxes
 
(9.9
)
 

 
(1.1
)
 

 
(1.6
)
 

 

 
(1.1
)
Net (loss) earnings
 
(4.9
)
 
46.6

 
73.1

 
33.6

 
8.1

 
54.5

 
50.6

 
54.4

Less: Earnings (loss) attributable to noncontrolling interest, net of tax
 
3.9

 

 

 

 
(2.3
)
 
(3.1
)
 
(2.3
)
 
33.5

Net (loss) earnings attributable to Manitowoc
 
$
(8.8
)
 
$
46.6

 
$
73.1

 
$
33.6

 
$
10.4

 
$
57.6

 
$
52.9

 
$
20.9

Basic earnings per share:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Earnings from continuing operations attributable to Manitowoc common shareholders
 
$
0.01

 
$
0.35

 
$
0.55

 
$
0.25

 
$
0.11

 
$
0.47

 
$
0.41

 
$
0.18

Discontinued operations:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loss from discontinued operations attributable to Manitowoc common shareholders
 

 

 

 

 
(0.02
)
 
(0.04
)
 
(0.01
)
 
(0.02
)
Loss on sale of discontinued operations, net of income taxes
 
(0.07
)
 

 
(0.01
)
 

 
(0.01
)
 

 

 
(0.01
)
(Loss) earnings per share attributable to Manitowoc common shareholders
 
$
(0.07
)
 
$
0.35

 
$
0.54

 
$
0.25

 
$
0.08

 
$
0.43

 
$
0.40

 
$
0.16

Diluted earnings per share:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Earnings from continuing operations attributable to Manitowoc common shareholders
 
$
0.01

 
$
0.34

 
$
0.54

 
$
0.24

 
$
0.10

 
$
0.46

 
$
0.40

 
$
0.18

Discontinued operations:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loss from discontinued operations attributable to Manitowoc common shareholders
 

 

 

 

 
(0.02
)
 
(0.04
)
 
(0.01
)
 
(0.02
)
Loss on sale of discontinued operations, net of income taxes
 
(0.07
)
 

 
(0.01
)
 

 
(0.01
)
 

 

 
(0.01
)
(Loss) earnings per share attributable to Manitowoc common shareholders
 
$
(0.06
)
 
$
0.34

 
$
0.53

 
$
0.25

 
$
0.08

 
$
0.43

 
$
0.39

 
$
0.15

Dividends per common share
 
$

 
$

 
$

 
$
0.08

 
$

 
$

 
$

 
$
0.08

Subsequent Events Subsequent Events
Subsequent Events
Subsequent Events
On January 29, 2015, Manitowoc announced that its Board of Directors has approved a plan to pursue a separation of the company’s Crane and Foodservice businesses into two independent, publicly-traded companies. The company currently anticipates effecting the separation through a tax-free spin-off of the Foodservice business and expects the spin-off to be completed in the first quarter of 2016.
Schedule II: Valuation and Qualifying Accounts
Schedule II: Valuation and Qualifying Accounts
THE MANITOWOC COMPANY, INC
AND SUBSIDIARIES
Schedule II: Valuation and Qualifying Accounts
For The Years Ended December 31, 2014, 2013 and 2012
(dollars in millions)
 
 
Balance at
Beginning of
Year
 
Charge to
Costs and
Expenses
 
Utilization of
Reserve
 
Other, Primarily
Impact of
Foreign
Exchange
Rates
 
Balance at end
of Year
Year End December 31, 2012
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
$
12.8

 
$
6.5

 
$
(6.1
)
 
$
0.1

 
$
13.3

Deferred tax valuation allowance
$
118.9

 
$
35.7

 
$

 
$
3.4

 
$
158.0

Year End December 31, 2013
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
$
13.3

 
$
8.1

 
$
(3.4
)
 
$
0.2

 
$
18.2

Deferred tax valuation allowance
$
158.0

 
$
1.1

 
$
(3.4
)
 
$
(5.9
)
 
$
149.8

Year End December 31, 2014
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
$
18.2

 
$
9.2

 
$
(6.4
)
 
$
(1.6
)
 
$
19.4

Deferred tax valuation allowance
$
149.8

 
$
32.4

 
$
(0.4
)
 
$
(13.6
)
 
$
168.2

Summary of Significant Accounting Policies (Policies)
Cash Equivalents and Restricted Cash All short-term investments purchased with an original maturity of three months or less are considered cash equivalents.  Restricted cash represents cash in escrow funds related to the security for an indemnity agreement for our casualty insurance provider as well as funds held in escrow to support certain international cash pooling programs.
Inventories Inventories are valued at the lower of cost or market value.  Approximately 84% and 87% of the company’s inventories at December 31, 2014 and 2013, respectively, were valued using the first-in, first-out (FIFO) method.  The remaining inventories were valued using the last-in, first-out (LIFO) method.  If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $36.2 million at both December 31, 2014 and 2013, respectively.  Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs.
Goodwill and Other Intangible Assets The company accounts for its goodwill and other intangible assets under the guidance of ASC Topic 350-10, “Intangibles — Goodwill and Other.” Under ASC Topic 350-10, goodwill is not amortized, but it is tested for impairment annually, or more frequently, as events dictate. See additional discussion of impairment testing under “Impairment of Long-Lived Assets,” below. The company’s other intangible assets with indefinite lives, including trademarks and tradenames and in-place distributor networks, are not amortized, but are also tested for impairment annually, or more frequently, as events dictate. The company’s other intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets are amortized straight-line over the following estimated useful lives:
 
Useful lives
Patents
10-20 years
Engineering drawings
15 years
Customer relationships
10-20 years
Property, Plant and Equipment Property, plant and equipment are stated at cost.  Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred.  Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated.  The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings.  Property, plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. 
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 15
Computer hardware and software
2 - 7

Property, plant and equipment also include cranes accounted for as operating leases.  Equipment accounted for as operating leases includes equipment leased directly to the customer and equipment for which the company has assisted in the financing arrangement whereby it has guaranteed more than insignificant residual value or made a buyback commitment.  Equipment that is leased directly to the customer is accounted for as an operating lease with the related assets capitalized and depreciated over their estimated economic life.  Equipment involved in a financing arrangement is depreciated over the life of the underlying arrangement so that the net book value at the end of the period equals the buyback amount or the residual value amount.  The amount of rental equipment included in property, plant and equipment amounted to $83.4 million and $63.1 million, net of accumulated depreciation, at December 31, 2014 and 2013, respectively.
Impairment of Long-Lived Assets The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable.  The company conducts its long-lived asset impairment analyses in accordance with ASC Topic 360-10-5.  ASC Topic 360-10-5 requires the company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and to evaluate the asset group against the sum of the undiscounted future cash flows.
For property, plant and equipment and other long-lived assets, other than goodwill and other indefinite lived intangible assets, the company performs undiscounted operating cash flow analyses to determine impairments.  If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the fair value to the net book value of the assets.  Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell.
Each year, in its second quarter, the company tests for impairment of goodwill according to a two-step approach.  In the first step, the company estimates the fair values of its reporting units using the present value of future cash flows approach, subject to a comparison for reasonableness to its market capitalization at the date of valuation.  If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any.  In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit used in the first step less the fair values of all other net tangible and intangible assets of the reporting unit.  If the carrying amount of the goodwill exceeds its implied fair market value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill.  In addition, goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value.  For other indefinite lived intangible assets, the impairment test consists of a comparison of the fair value of the intangible assets to their carrying amount.  See Note 9, “Goodwill and Other Intangible Assets,” for further details on our impairment assessments.
Warranties Estimated warranty costs are recorded in cost of sales at the time of sale of the warranted products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products.  These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience.
Environmental Liabilities The company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable.  Such accruals are adjusted as information develops or circumstances change.  Costs of long-term expenditures for environmental remediation obligations are discounted to their present value when the timing of cash flows are estimable.
Product Liabilities The company records product liability reserves for its self-insured portion of any pending or threatened product liability actions.  The reserve is based upon two estimates.  First, the company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the company’s best judgment and the advice of legal counsel.  These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the case.  Second, the company determines the amount of additional reserve required to cover incurred but not reported product liability obligations and to account for possible adverse development of the established case reserves (collectively referred to as IBNR).  This analysis is performed at least twice annually. 
Foreign Currency Translation The financial statements of the company’s non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items.  Resulting translation adjustments are recorded to Accumulated Other Comprehensive Income (AOCI) as a component of Manitowoc stockholders’ equity.
Derivative Financial Instruments and Hedging Activities The company has written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes.  The use of financial instruments for trading purposes is strictly prohibited.  The company uses financial instruments to manage the market risk from changes in foreign exchange rates, commodities and interest rates.  The company follows the guidance in accordance with ASC Topic 815-10, “Derivatives and Hedging.”  The fair values of all derivatives are recorded in the Consolidated Balance Sheets.  The change in a derivative’s fair value is recorded each period in current earnings or AOCI depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction.
During 2014, 2013 and 2012, minimal amounts were recognized in earnings due to ineffectiveness of certain commodity hedges.  The amount reported as derivative instrument fair market value adjustment in the AOCI account within the Consolidated Statements of Comprehensive Income (Loss) represents the net gain (loss) on foreign currency exchange contracts, commodity contracts, and interest rate contracts designated as cash flow hedges, net of income taxes.
Cash Flow Hedges The company selectively hedges anticipated transactions that are subject to foreign exchange exposure, commodity price exposure, or variable interest rate exposure, primarily using foreign currency exchange contracts, commodity contracts, and interest rate contracts, respectively.  These instruments are designated as cash flow hedges in accordance with ASC Topic 815-10 and are recorded in the Consolidated Balance Sheets at fair value.  The effective portion of the contracts’ gains or losses due to changes in fair value are initially recorded as a component of AOCI and are subsequently reclassified into earnings when the hedged transactions, typically sales and costs related to sales and interest expense, occur and affect earnings.  These contracts are highly effective in hedging the variability in future cash attributable to changes in currency exchange rates, commodity prices, or interest rates.
Fair Value Hedges The company periodically enters into interest rate swaps designated as a hedge of the fair value of a portion of its fixed rate debt.  These hedges effectively result in changing a portion of its fixed rate debt to variable interest rate debt.  Both the swaps and the debt are recorded in the Consolidated Balance Sheets at fair value.  The change in fair value of the swaps should exactly offset the change in fair value of the hedged debt, with no net impact to earnings.  Interest expense of the hedged debt is recorded at the variable rate in earnings.  See Note 11, “Debt” for further discussion of fair value hedges.
The company selectively hedges cash inflows and outflows that are subject to foreign currency exposure from the date of transaction to the related payment date.  The hedges for these foreign currency accounts receivable and accounts payable are recorded in the Consolidated Balance Sheets at fair value.  Gains or losses due to changes in fair value are recorded as an adjustment to earnings in the Consolidated Statements of Operations.
Stock-Based Compensation Stock-based compensation plans are described more fully in Note 16, “Stock-Based Compensation.”  The company recognizes expense for all stock-based compensation with graded vesting on a straight-line basis over the vesting period of the entire award.  The company recognized $1.0 million, $2.8 million and $4.5 million of compensation expense related to restricted stock awards during the years ended December 31, 2014, 2013 and 2012, respectively. In addition, the company recognized $5.7 million, $6.3 million and $6.7 million of compensation expense related to stock options during the years ended December 31, 2014, 2013 and 2012, respectively.  The company also recognized $5.9 million, $5.8 million, and $5.2 million of compensation expense associated with restricted stock units in 2014, 2013 and 2012, respectively.
Revenue Recognition Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered.  Shipping and handling fees are reflected in net sales and shipping and handling costs are reflected in cost of sales in the Consolidated Statements of Operations.
The company enters into transactions with customers that provide for residual value guarantees and buyback commitments on certain crane transactions.  The company records transactions which it provides significant residual value guarantees and any buyback commitments as operating leases.  Net revenues in connection with the initial transactions are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the customer’s third party financing agreement.  See Note 18, “Guarantees.”
The company also leases cranes to customers under operating lease terms.  Revenue from operating leases is recognized ratably over the term of the lease, and leased cranes are depreciated over their estimated useful lives.
Research and Development Research and development costs are charged to expense as incurred and amounted to $87.4 million, $86.4 million and $87.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.  Research and development costs include salaries, materials, contractor fees and other administrative costs. 
Income Taxes The company utilizes the liability method to recognize deferred tax assets and liabilities for the expected future income tax consequences of events that have been recognized in the company’s financial statements. Under this method, deferred tax assets and liabilities are determined based on the temporary difference between financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the company will not realize the benefit of such assets. The company evaluates its uncertain tax positions as new information becomes available. Tax benefits are recognized to the extent a position is more likely than not to be sustained upon examination by the taxing authority.
Earnings Per Share Basic earnings per share is computed by dividing net earnings attributable to Manitowoc by the weighted average number of common shares outstanding during each year or period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted average shares outstanding is increased to include shares of restricted stock, performance shares and the number of additional shares that would have been outstanding if stock options were exercised and the proceeds from such exercise were used to acquire shares of common stock at the average market price during the year or period.
Comprehensive Income (Loss) Comprehensive income (loss) includes, in addition to net earnings, other items that are reported as direct adjustments to Manitowoc stockholders’ equity.  Currently, these items are foreign currency translation adjustments, employee postretirement benefit adjustments and the change in fair value of certain derivative instruments.
Concentration of Credit Risk Credit extended to customers through trade accounts receivable potentially subjects the company to risk.  This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas.  However, a significant amount of the company’s receivables are with distributors and contractors in the construction industry, large companies in the foodservice and beverage industry, customers servicing the U.S. steel industry, and government agencies.  The company currently does not foresee a significant credit risk associated with these individual groups of receivables, but continues to monitor the exposure, if any.
Summary of Significant Accounting Policies (Tables)
Other intangible assets are amortized straight-line over the following estimated useful lives:
 
Useful lives
Patents
10-20 years
Engineering drawings
15 years
Customer relationships
10-20 years
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 15
Computer hardware and software
2 - 7
Discontinued Operations (Tables)
(in millions)
 
2014
 
2013
 
2012
Net sales
 
$
0.3

 
$
16.8

 
$
13.7

 
 
 
 
 
 
 
Pretax loss from discontinued operation
 
$
(0.8
)
 
$
(17.3
)
 
$
(16.6
)
Benefit for taxes on earnings
 

 
(0.3
)
 

Net loss from discontinued operation
 
$
(0.8
)
 
$
(17.0
)
 
$
(16.6
)
(in millions)
 
2014
 
2013
 
2012
Net sales
 
$

 
$
2.5

 
$
32.6

 
 
 
 
 
 
 
Pretax earnings from discontinued operation
 
$

 
$
0.1

 
$
1.7

(Benefit) provision for taxes on earnings
 

 
(0.4
)
 
0.7

Net earnings from discontinued operation
 
$

 
$
0.5

 
$
1.0

(in millions)
 
2014
 
2013
 
2012
Net sales
 
$

 
$

 
$

 
 
 
 
 
 
 
Pretax loss from discontinued operations
 
$
(0.9
)
 
$
(3.4
)
 
$
(1.2
)
Benefit for taxes on earnings
 
(0.3
)
 
(1.1
)
 
(0.5
)
Net loss from discontinued operations
 
$
(0.6
)
 
$
(2.3
)
 
$
(0.7
)
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
Derivative Financial Instruments (Tables)
The fair value of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet as of December 31, 2013 was as follows:
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Other current assets
$
2.3

Commodity contracts
Other current assets
0.2

Total derivatives designated as hedging instruments
 
$
2.5

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

Foreign exchange contracts
Other current assets
$
0.6

Total derivatives NOT designated as hedging instruments
 
$
0.6

 
 
 

Total asset derivatives
 
$
3.1

The fair value of outstanding derivative contracts recorded as assets in the accompanying Consolidated Balance Sheet as of December 31, 2014 was as follows:
 
ASSET DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Interest rate swap contracts: Float-to-fixed
Other non-current assets
$
0.8

Total derivatives designated as hedging instruments
 
$
0.8

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

Foreign exchange contracts
Other current assets
$
2.1

Total derivatives NOT designated as hedging instruments
 
$
2.1

 
 
 

Total asset derivatives
 
$
2.9

The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2014 was as follows:
 
LIABILITY DERIVATIVES
(in millions)
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
$
6.6

Commodity contracts
Accounts payable and accrued expenses
1.0

Interest rate swap contracts: Float-to-fixed
Accounts payable and accrued expenses
2.3

Commodity contracts
Other non-current liabilities
0.4

Interest rate swap contracts: Fixed-to-float
Other non-current liabilities
4.3

Total derivatives designated as hedging instruments
 
$
14.6

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

Foreign exchange contracts
Accounts payable and accrued expenses
$
1.3

Total derivatives NOT designated as hedging instruments
 
$
1.3

 
 
 

Total liability derivatives
 
$
15.9

The fair value of outstanding derivative contracts recorded as liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2013 was as follows:
 
LIABILITIES DERIVATIVES
 (in millions)
Balance Sheet Location
 
Fair Value
Derivatives designated as hedging instruments
 
 
 

Foreign exchange contracts
Accounts payable and accrued expenses
 
$
0.5

Commodity contracts
Accounts payable and accrued expenses
 
0.4

Interest rate swap contracts: Fixed-to-float
Other non-current liabilities
 
14.9

Total derivatives designated as hedging instruments
 
 
$
15.8

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

Foreign exchange contracts
Accounts payable and accrued expenses
$
0.6

Total derivatives NOT designated as hedging instruments
 
$
0.6

 
 
 

Total liability derivatives
 
$
16.4

The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2012 and gains or losses initially recognized in OCI in the Consolidated Balance Sheet was as follows: 
Derivatives in Cash Flow Hedging
Relationships (in millions)
 
Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)
 
Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)
 
Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)
Foreign exchange contracts
 
$
4.2

 
Cost of sales
 
$
(7.3
)
Interest rate swap & cap contracts
 
(0.2
)
 
Interest expense
 
0.1

Commodity contracts
 
1.0

 
Cost of sales
 
(2.7
)
Total
 
$
5.0

 
 
 
$
(9.9
)
Derivatives Relationships (in millions)
 
Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective
Portion and Amount
Excluded from Effectiveness
Testing)
Commodity contracts
 
Cost of sales
 
$

Total
 
 
 
$

Derivatives Not Designated as Hedging
Instruments (in millions)
 
Location of Gain or (Loss)
recognized in Income on
Derivative
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Foreign exchange contracts
 
Other (expense) income, net
 
$
1.2

Interest rate swap contracts
 
Other (expense) income, net
 
$
9.3

Total
 
 
 
$
10.5

Derivatives Designated as Fair
Market Value Instruments under
ASC 815 (in millions)
 
Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective
Portion and Amount
Excluded from Effectiveness
Testing)
Interest rate swap contracts
 
Interest expense
 
$
(1.7
)
Total
 
 
 
$
(1.7
)
The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2014 and gains or losses initially recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet was as follows: 
Derivatives in Cash Flow Hedging
Relationships (in millions)
 
Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)
 
Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)
 
Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)
Foreign exchange contracts
 
$
(5.3
)
 
Cost of sales
 
$
(2.2
)
Commodity contracts
 
(0.8
)
 
Cost of sales
 
(0.1
)
Interest rate swap contracts: Float-to-fixed
 
(0.9
)
 
Interest expense
 
(1.8
)
Total
 
$
(7.0
)
 
 
 
$
(4.1
)

Derivatives Relationships (in millions)
Location of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)
Amount of Gain or (Loss)
Recognized in Income on
Derivative (Ineffective Portion
and Amount Excluded from
Effectiveness Testing)
Commodity contracts
Cost of sales
$
(0.1
)
Total
 
$
(0.1
)
Derivatives Not Designated as
Hedging Instruments (in millions)
Location of Gain or (Loss)
Recognized in Income on
Derivative
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Foreign exchange contracts
Other (expense) income, net
$
0.8

Total
 
$
0.8

 
Derivatives Designated as Fair
Market Value Instruments under
ASC 815 (in millions)
Location of Gain or (Loss)
Recognized in Income on
Derivative
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Interest rate swap contracts: Fixed-to-float
Interest expense
$
10.6

Total
 
$
10.6

The effect of derivative instruments on the Consolidated Statement of Operations for the twelve months ended December 31, 2013 and gains or losses initially recognized in OCI in the Consolidated Balance Sheet was as follows: 
Derivatives in Cash Flow Hedging
Relationships (in millions)
 
Amount of Gain or
(Loss) Recognized in
OCI on Derivative
(Effective Portion, net of
tax)
 
Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
(Effective Portion)
 
Amount of Gain or
(Loss) Reclassified from
Accumulated OCI into
Income (Effective
Portion)
Foreign exchange contracts
 
$
(0.3
)
 
Cost of sales
 
$
3.0

Commodity contracts
 
0.4

 
Cost of sales
 
(1.6
)
Total
 
$
0.1

 
 
 
$
1.4

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

Total
 
 
 
$

Derivatives Not Designated as Hedging
Instruments (in millions)
 
Location of Gain or (Loss)
recognized in Income on
Derivative
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Foreign exchange contracts
 
Other (expense) income, net
 
$
0.2

Total
 
 
 
$
0.2


Derivatives Designated as Fair
Market Value Instruments under
ASC 815 (in millions)
Location of Gain or (Loss)
Recognized in Income on
Derivative
Amount of Gain or (Loss)
Recognized in Income on
Derivative
Interest rate swap contracts: Fixed-to-float
Interest expense
$
(13.7
)
Total
 
$
(13.7
)
 
As of December 31, 2013, the company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions:
Commodity
 
Units Hedged
 
 
 
Type
Aluminum
 
1,622
 
MT
 
Cash Flow
Copper
 
382
 
MT
 
Cash Flow
Natural Gas
 
214,277
 
MMBtu
 
Cash Flow
Steel
 
11,503
 
Short Tons
 
Cash Flow
Currency
 
Units Hedged
 
Type
Canadian Dollar
 
11,011,092
 
Cash Flow
European Euro
 
74,934,975
 
Cash Flow
South Korean Won
 
1,258,808,642
 
Cash Flow
Singapore Dollar
 
5,280,000
 
Cash Flow
United States Dollar
 
42,200,000
 
Cash Flow
As of December 31, 2014, the company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions:
Commodity
 
Units Hedged
 
 
 
Type
Aluminum
 
1,657
 
MT
 
Cash Flow
Copper
 
820
 
MT
 
Cash Flow
Natural Gas
 
347,608
 
MMBtu
 
Cash Flow
Steel
 
14,665
 
Short Tons
 
Cash Flow
Currency
 
Units Hedged
 
Type
Canadian Dollar
 
7,984,824
 
Cash Flow
European Euro
 
89,006,695
 
Cash Flow
South Korean Won
 
1,964,906,996
 
Cash Flow
Singapore Dollar
 
3,900,000
 
Cash Flow
United States Dollar
 
29,228,731
 
Cash Flow
Mexican Peso
 
52,674,387
 
Cash Flow



For derivative instruments that are not designated as hedging instruments under ASC Topic 815-10, the gains or losses on the derivatives are recognized in current earnings within Other (expense) income, net. As of December 31, 2013, the company had the following outstanding currency forward contracts that were not designated as hedging instruments:
Currency
 
Units Hedged
 
Recognized Location
 
Purpose
European Euro
 
31,738,273
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
United States Dollar
 
29,091,053
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
Australian Dollar
 
1,000,000
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
Chinese Renminbi
 
125,000,000
 
Other (expense) income, net
 
Accounts Payable and Receivable Settlement
As of December 31, 2014, the company had the following outstanding currency forward contracts that were not designated as hedging instruments:
Currency
 
Units Hedged
 
Recognized Location
 
Purpose
European Euro
 
73,302,332
 
Other (expense) income, net
 
Accounts payable and receivable settlement
United States Dollar
 
18,244,912
 
Other (expense) income, net
 
Accounts payable and receivable settlement
Australian Dollar
 
2,482,430
 
Other (expense) income, net
 
Accounts payable and receivable settlement
Mexican Peso
 
3,151,000
 
Other (expense) income, net
 
Accounts payable and receivable settlement
Canadian Dollar
 
2,516
 
Other (expense) income, net
 
Accounts payable and receivable settlement
Inventories (Tables)
Schedule of the components of inventories
The components of inventories at December 31, 2014 and December 31, 2013 are summarized as follows:
(in millions)
 
2014
 
2013
Inventories — gross:
 
 

 
 

Raw materials
 
$
226.2

 
$
259.0

Work-in-process
 
103.7

 
130.2

Finished goods
 
414.8

 
436.8

Total inventories — gross
 
744.7

 
826.0

Excess and obsolete inventory reserve
 
(64.0
)
 
(69.0
)
Net inventories at FIFO cost
 
680.7

 
757.0

Excess of FIFO costs over LIFO value
 
(36.2
)
 
(36.2
)
Inventories — net
 
$
644.5

 
$
720.8

Property, Plant and Equipment (Tables)
Components of property, plant and equipment
The components of property, plant and equipment at December 31, 2014 and December 31, 2013 are summarized as follows:
(in millions)
 
2014
 
2013
Land
 
$
31.2

 
$
40.8

Building and improvements
 
344.2

 
361.2

Machinery, equipment and tooling
 
509.1

 
509.0

Furniture and fixtures
 
24.5

 
47.8

Computer hardware and software
 
169.7

 
125.8

Rental cranes
 
111.2

 
89.3

Construction in progress
 
104.2

 
102.2

Total cost
 
1,294.1

 
1,276.1

Less accumulated depreciation
 
(703.1
)
 
(697.3
)
Property, plant and equipment-net
 
$
591.0

 
$
578.8

Goodwill and Other Intangible Assets (Tables)
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2014 and December 31, 2013 are as follows:
(in millions)
 
Crane
 
Foodservice
 
Total
Gross balance as of January 1, 2013
 
$
341.7

 
$
1,384.7

 
$
1,726.4

Acquisition of Inducs
 

 
5.0

 
5.0

Restructuring reserve adjustment
 

 
(0.7
)
 
(0.7
)
Foreign currency impact
 
3.4

 
0.2

 
3.6

Gross balance as of December 31, 2013
 
$
345.1

 
$
1,389.2

 
$
1,734.3

Accumulated asset impairments
 

 
(515.7
)
 
(515.7
)
Net balance as of December 31, 2013
 
$
345.1

 
$
873.5

 
$
1,218.6

Foreign currency impact
 
(19.8
)
 
(0.7
)
 
(20.5
)
Gross balance as of December 31, 2014
 
$
325.3

 
$
1,388.5

 
$
1,713.8

Accumulated asset impairments
 

 
(515.7
)
 
(515.7
)
Net balance as of December 31, 2014
 
$
325.3

 
$
872.8

 
$
1,198.1

The gross carrying amount and accumulated amortization of the company’s intangible assets other than goodwill are as follows as of December 31, 2014 and December 31, 2013.
 
 
December 31, 2014
 
December 31, 2013
(in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
Trademarks and tradenames
 
$
300.0

 
$

 
$
300.0

 
$
311.8

 
$

 
$
311.8

Customer relationships
 
425.7

 
(136.0
)
 
289.7

 
426.1

 
(114.4
)
 
311.7

Patents
 
32.7

 
(28.3
)
 
4.4

 
34.9

 
(28.4
)
 
6.5

Engineering drawings
 
11.0

 
(9.3
)
 
1.7

 
11.5

 
(9.1
)
 
2.4

Distribution network
 
19.7

 

 
19.7

 
21.0

 

 
21.0

Other intangibles
 
170.9

 
(71.7
)
 
99.2

 
176.6

 
(63.8
)
 
112.8

 
 
$
960.0

 
$
(245.3
)
 
$
714.7

 
$
981.9

 
$
(215.7
)
 
$
766.2

Accounts Payable and Accrued Expenses (Tables)
Schedule of accounts payable and accrued expenses
Accounts payable and accrued expenses at December 31, 2014 and December 31, 2013 are summarized as follows:
(in millions)
 
2014
 
2013
Trade accounts payable and interest payable
 
$
470.0

 
$
510.6

Employee related expenses
 
90.3

 
99.9

Restructuring expenses
 
20.3

 
20.6

Profit sharing and incentives
 
6.8

 
44.7

Accrued rebates
 
52.8

 
45.2

Deferred revenue - current
 
21.6

 
25.0

Income taxes payable
 
16.2

 
62.5

Miscellaneous accrued expenses
 
129.4

 
127.1

 
 
$
807.4

 
$
935.6

Debt (Tables)
Outstanding debt at December 31, 2014 and December 31, 2013 is summarized as follows:
(in millions)
 
2014
 
2013
Revolving credit facility
 
$

 
$

Term loan A
 
336.9

 
162.5

Term loan B
 
168.5

 

Senior notes due 2018
 

 
408.4

Senior notes due 2020
 
614.8

 
614.8

Senior notes due 2022
 
296.9

 
289.1

Other
 
106.4

 
52.0

Total debt
 
1,523.5

 
1,526.8

Less current portion and short-term borrowings
 
(80.3
)
 
(22.7
)
Long-term debt
 
$
1,443.2

 
$
1,504.1

The covenant levels of the financial covenants under the New Senior Credit Facility are as set forth below:
Fiscal Quarter Ending
 
Consolidated Senior
Secured Leverage
Ratio
(less than)
 
Consolidated Interest
 Coverage Ratio
(greater than)
December 31, 2014
 
3.25:1.00
 
2.50:1.00
March 31, 2015
 
3.25:1.00
 
2.75:1.00
June 30, 2015
 
3.25:1.00
 
2.75:1.00
September 30, 2015
 
3.25:1.00
 
2.75:1.00
December 31, 2015
 
3.25:1.00
 
2.75:1.00
March 31, 2016 and thereafter
 
3.00:1.00
 
3.00:1.00
The following would be the principal and premium paid by the company, expressed as percentages of the principal amount thereof, if it redeems the 2020 Notes during the 12-month period commencing on November 1 of the year set forth below: 
Year
Percentage
2015
104.250
%
2016
102.833
%
2017
101.417
%
2018 and thereafter
100.000
%
The following would be the principal and premium paid by the company, expressed as percentages of the principal amount thereof, if it redeems the 2022 Notes during the 12-month period commencing on October 15 of the year set forth below:
Year
Percentage
2017
102.938
%
2018
101.958
%
2019
100.979
%
2020 and thereafter
100.000
%
The aggregate scheduled maturities of outstanding debt obligations in subsequent years are as follows:
(in millions)
 
2015
$
80.3

2016
50.4

2017
52.0

2018
58.9

2019
194.4

Thereafter
1,087.5

Total
$
1,523.5

Income Taxes (Tables)
Earnings from continuing operations are summarized below:
(in millions)
 
2014
 
2013
 
2012
Earnings (loss) from continuing operations before income taxes:
 
 

 
 

 
 

Domestic
 
$
32.6

 
$
90.1

 
$
94.1

Foreign
 
136.8

 
135.1

 
52.8

Total
 
$
169.4

 
$
225.2

 
$
146.9

Income tax expense (benefit) from continuing operations is summarized as follows:
(in millions)
 
2014
 
2013
 
2012
Current:
 
 

 
 

 
 

Federal and state
 
$
(12.0
)
 
$
24.1

 
$
29.2

Foreign
 
26.8

 
25.4

 
17.3

Total current
 
$
14.8

 
$
49.5

 
$
46.5

Deferred:
 
 

 
 

 
 

Federal and state
 
$
4.5

 
$
(15.2
)
 
$
(5.2
)
Foreign
 
(10.7
)
 
1.8

 
(3.3
)
Total deferred
 
$
(6.2
)
 
$
(13.4
)
 
$
(8.5
)
Provision for taxes on earnings
 
$
8.6

 
$
36.1

 
$
38.0

The federal statutory income tax rate is reconciled to the company’s effective income tax rate for continuing operations for the years ended December 31, 2014, 2013 and 2012 as follows, which excludes the impact of discontinued operations which had an effective tax rate of 6.9% for 2014:
 
 
2014
 
2013
 
2012
Federal income tax at statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State income provision (benefit)
 
(0.4
)
 
(0.5
)
 
0.3

Manufacturing & research incentives
 
(2.7
)
 
(3.3
)
 
(3.5
)
Taxes on foreign income which differ from the U.S. statutory rate
 
(14.4
)
 
(9.3
)
 
(7.7
)
Adjustments for unrecognized tax benefits
 
(1.4
)
 
(5.4
)
 
(6.7
)
Adjustments for valuation allowances
 
26.8

 
(1.0
)
 
9.2

Capital loss generation
 
(45.7
)
 

 

Change in assertion over permanently reinvested foreign earnings
 
3.2

 

 

Other items
 
4.7

 
0.5

 
(0.7
)
Effective tax rate
 
5.1
 %
 
16.0
 %
 
25.9
 %
Temporary differences and carryforwards that give rise to deferred tax assets and liabilities include the following items:
(in millions)
 
2014
 
2013
Current deferred tax assets (liabilities):
 
 

 
 

   Inventories
 
$
29.5

 
$
32.3

   Accounts receivable
 
(5.6
)
 
(2.1
)
   Product warranty reserves
 
19.0

 
20.0

   Product liability reserves
 
8.3

 
7.9

   Deferred revenue, current portion
 
7.7

 
0.6

   Deferred employee benefits
 
13.3

 
16.6

   Other reserves and allowances
 
5.7

 
16.1

   Less valuation allowance
 
(12.2
)
 
(3.6
)
   Net deferred tax assets, current
 
$
65.7

 
$
87.8

Non-current deferred tax assets (liabilities):
 
 
 
 
   Property, plant and equipment
 
$
(28.2
)
 
$
(32.6
)
   Intangible assets
 
(281.8
)
 
(296.3
)
   Deferred employee benefits
 
87.7

 
67.1

   Product warranty reserves
 
5.2

 
4.2

   Tax credits
 
1.0

 
2.3

   Loss carryforwards
 
199.0

 
192.7

   Deferred revenue
 
4.0

 
5.9

   Other
 
(0.7
)
 
(2.4
)
   Total non-current deferred tax liabilities
 
(13.8
)
 
(59.1
)
   Less valuation allowance
 
(156.0
)
 
(146.2
)
   Net deferred tax liabilities, non-current
 
$
(169.8
)
 
$
(205.3
)

The net deferred tax assets (liabilities) are reflected in the Consolidated Balance Sheets for the years ended December 31, 2014 and December 31, 2013 as follows:
(in millions)
 
2014
 
2013
Current income tax asset
 
$
71.3

 
$
89.9

Long-term income tax assets, included in other non-current assets
 
16.4

 
9.0

Current deferred income tax liability, included in accounts payable and accrued expenses
 
(5.6
)
 
(2.1
)
Long-term deferred income tax liability
 
(186.2
)
 
(214.3
)
Net deferred income tax liability
 
$
(104.1
)
 
$
(117.5
)
The following table provides the open tax years for which the company could be subject to income tax examination by the tax authorities in its major jurisdictions:
Jurisdiction
 
Open Years
U.S. Federal
 
2012 — 2014
Wisconsin
 
2009 — 2014
China
 
2007 — 2014
France
 
2013 — 2014
Germany
 
2006 — 2014
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 is as follows:
(in millions)
 
2014
 
2013
 
2012
Balance at beginning of year
 
$
35.9

 
$
47.3

 
$
56.3

Additions based on tax positions related to the current year
 
15.5

 
2.0

 
1.8

Additions for tax positions of prior years
 
0.1

 
3.7

 
3.6

Reductions for tax positions of prior years
 
(2.7
)
 
(8.1
)
 
(11.9
)
Reductions based on settlements with taxing authorities
 
(7.3
)
 
(3.6
)
 
(1.1
)
Reductions for lapse of statute
 
(8.2
)
 
(5.4
)
 
(1.4
)
Balance at end of year
 
$
33.3

 
$
35.9

 
$
47.3

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: 
 
 
2014
 
2013
 
2012
Basic weighted average common shares outstanding
 
134,934,892

 
132,894,179

 
131,447,895

Effect of dilutive securities - stock awards
 
2,416,417

 
2,436,014

 
1,869,155

Diluted weighted average common shares outstanding
 
137,351,309

 
135,330,193

 
133,317,050

Equity (Tables)
The components of accumulated other comprehensive income (loss) as of December 31, 2014 and 2013 are as follows:
(in millions)
 
2014
 
2013
Foreign currency translation
 
$
(29.2
)
 
$
54.8

Derivative instrument fair market value, net of income taxes of $(3.2) and $0.6
 
(6.3
)
 
1.0

Employee pension and postretirement benefit adjustments, net of income taxes of $(40.1) and $(26.8)
 
(95.0
)
 
(62.7
)
 
 
$
(130.5
)
 
$
(6.9
)
A reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component for the year ended December 31, 2013 and December 31, 2014 is as follows:
(in millions)
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Foreign Currency Translation
 
Total
Balance at December 31, 2012
 
$
0.6

 
$
(80.3
)
 
$
50.3

 
$
(29.4
)
Other comprehensive loss before reclassifications
 
$
1.3

 
$
13.5

 
$
4.5

 
$
19.3

Amounts reclassified from accumulated other comprehensive income
 
(0.9
)
 
4.1

 

 
3.2

Net current period other comprehensive income
 
0.4

 
17.6

 
4.5

 
22.5

Balance at December 31, 2013
 
$
1.0

 
$
(62.7
)
 
$
54.8

 
$
(6.9
)
Other comprehensive loss before reclassifications
 
(9.9
)
 
(35.4
)
 
(84.0
)
 
(129.3
)
Amounts reclassified from accumulated other comprehensive income
 
2.6

 
3.1

 

 
5.7

Net current period other comprehensive loss
 
(7.3
)
 
(32.3
)
 
(84.0
)
 
(123.6
)
Balance at December 31, 2014
 
$
(6.3
)
 
$
(95.0
)
 
$
(29.2
)
 
$
(130.5
)
A reconciliation for the reclassifications out of accumulated other comprehensive income, net of tax, for the year ended December 31, 2014 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Recognized Location
Gains and losses on cash flow hedges
 
 
 
 
  Foreign exchange contracts
 
$
(2.2
)
 
Cost of sales
  Commodity contracts
 
(0.1
)
 
Cost of sales
  Interest rate swap contracts: Float-to-fixed
 
(1.8
)
 
Interest expense
 
 
(4.1
)
 
Total before tax
 
 
1.5

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

(a)
 
  Actuarial losses
 
(4.3
)
(a)
 
 
 
(4.1
)
 
Total before tax
 
 
1.0

 
Tax benefit
 
 
$
(3.1
)
 
Net of Tax
 
 
 
 
 
Total reclassifications for the period
 
$
(5.7
)
 
Net of Tax
 
 
 
 
 
(a) These other comprehensive income components are included in the computation of net periodic pension cost (see Note 20, “Employee Benefit Plans,” for further details).
Stock-Based Compensation (Tables)
A summary of the company’s stock option activity is as follows (in millions, except weighted average exercise price per share):
 
 
Shares
 
Weighted
Average
Exercise Price
 
Aggregate
Intrinsic
Value
Options outstanding as of January 1, 2013
 
7.4

 
$
15.27

 
 

Granted
 
0.4

 
18.14

 
 

Exercised
 
(0.6
)
 
8.35

 
 

Cancelled
 
(0.2
)
 
16.66

 
 

Options outstanding as of December 31, 2013
 
7.0

 
$
16.00

 
 

Granted
 
0.3

 
29.08

 
 

Exercised
 
(1.7
)
 
10.92

 
 

Cancelled
 

 
27.07

 
 

Options outstanding as of December 31, 2014
 
5.6

 
$
18.23

 
$
36.3

Options exercisable as of:
 
 

 
 

 
 

December 31, 2014
 
4.2

 
$
17.86

 
$
29.8

The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2014 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price):
 
 
Outstanding
 
Weighted
Average
Remaining
Contractual
 
Weighted
Average
 
Exercisable
 
Weighted
Average
Range of Exercise Price per Share
 
Options
 
Life (Years)
 
Exercise Price
 
Options
 
Exercise Price
$4.41 - $9.59
 
0.7

 
4.0
 
$
4.41

 
0.7

 
$
4.41

$9.60 - $10.21
 
0.2

 
0.3
 
10.13

 
0.2

 
10.13

$10.22 - $18.13
 
1.7

 
5.4
 
12.90

 
1.2

 
12.44

$18.14 - $26.09
 
1.2

 
6.0
 
19.17

 
0.8

 
19.38

$26.10- $29.06
 
0.5

 
1.3
 
26.11

 
0.5

 
26.11

$29.07 - $30.46
 
0.8

 
5.2
 
29.32

 
0.4

 
29.52

$30.47 - $36.03
 
0.1

 
9.2
 
30.47

 

 

$36.04 - $47.84
 
0.4

 
2.9
 
38.88

 
0.4

 
38.88

 
 
5.6

 
4.6
 
$
18.23

 
4.2

 
$
17.86

The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing method with the following assumptions:
 
 
2014
 
2013
 
2012
Expected Life (years)
 
6.0

 
6.0

 
6.0

Risk-free Interest rate
 
1.9
%
 
1.1
%
 
1.1
%
Expected volatility
 
55.0
%
 
56.0
%
 
55.0
%
Expected dividend yield
 
0.4
%
 
0.6
%
 
0.6
%
A summary of activity for restricted stock awards for the year ended December 31, 2014 is as follows (in millions except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2014
 
0.5

 
$
18.25

Granted
 

 

Vested
 
(0.3
)
 
19.58

Cancelled
 

 
17.21

Unvested as of December 31, 2014
 
0.2

 
$
16.58

A summary of activity for restricted stock units for the year ended December 31, 2014 is as follows (in millions except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2014
 
0.7

 
$
18.41

Granted
 
0.4

 
34.57

Vested*
 
(0.3
)
 
17.79

Cancelled
 

 
21.92

Unvested as of December 31, 2014
 
0.8

 
$
27.09

Guarantees (Tables)
Schedule of the changes in warranty liability
Below is a table summarizing the warranty activity for the years ended December 31, 2014 and 2013:
(in millions)
 
2014
 
2013
Balance at beginning of period
 
$
99.0

 
$
101.2

Accruals for warranties issued during the period
 
59.8

 
58.6

Acquisition
 

 
0.2

Settlements made (in cash or in kind) during the period
 
(63.4
)
 
(61.7
)
Currency translation
 
(3.2
)
 
0.7

Balance at end of period
 
$
92.2

 
$
99.0

Restructuring (Tables)
The following is a rollforward of all restructuring activities relating to the Crane segment for the twelve-month period ended December 31, 2014 (in millions):
Restructuring
Reserve Balance as
of
December 31, 2013
 
Restructuring
Charges
 
Use of Reserve
 
Restructuring
Reserve Balance as
of
December 31, 2014
$
4.3

 
$
6.6

 
$
(6.2
)
 
$
4.7

The following is a rollforward of all restructuring activities relating to the Foodservice segment for the twelve-month period ended December 31, 2014 (in millions):
Restructuring
Reserve Balance as
of
December 31, 2013
 
Restructuring
Charges
 
Use of Reserve
 
Restructuring
Reserve Balance as
of
December 31, 2014
$
16.3

 
$
2.4

 
$
(3.1
)
 
$
15.6

Employee Benefit Plans (Tables)
The components of period benefit costs for the years ended December 31, 2014, 2013 and 2012 are as follows:
 
 
US Pension Plans
 
Non-US Pension Plans
 
Postretirement Health
and Other
(in millions)
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Service cost - benefits earned during the year
 
$

 
$

 
$

 
$
2.4

 
$
2.4

 
$
2.2

 
$
0.4

 
$
0.6

 
$
0.8

Interest cost of projected benefit obligation
 
10.3

 
9.6

 
10.2

 
11.3

 
9.8

 
10.2

 
2.1

 
2.0

 
2.8

Expected return on assets
 
(9.5
)
 
(10.2
)
 
(10.2
)
 
(9.4
)
 
(7.4
)
 
(8.2
)
 

 

 

Amortization of prior service cost
 

 

 

 
0.1

 
0.1

 
0.1

 
(0.3
)
 
(0.1
)
 

Amortization of actuarial net loss (gain)
 
2.9

 
3.5

 
2.9

 
1.5

 
1.9

 
0.8

 
(0.1
)
 

 
0.4

Curtailment gain recognized
 

 

 

 

 

 

 

 
(0.8
)
 

Settlement gain recognized
 

 

 

 

 

 
(1.6
)
 

 

 

Net periodic benefit cost
 
$
3.7

 
$
2.9

 
$
2.9

 
$
5.9

 
$
6.8

 
$
3.5

 
$
2.1

 
$
1.7

 
$
4.0

Weighted average assumptions:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.9
%
 
4.1
%
 
4.6
%
 
4.3
%
 
4.0
%
 
4.7
%
 
4.5
%
 
3.5
%
 
4.6
%
Expected return on plan assets
 
6.0
%
 
5.8
%
 
6.0
%
 
4.5
%
 
3.9
%
 
4.5
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
N/A

 
4.3
%
 
3.8
%
 
3.7
%
 
1.5
%
 
3.0
%
 
3.0
%
The following is a reconciliation of the changes in benefit obligation, the changes in plan assets, and the funded status as of December 31, 2014 and 2013:
 
 
US Pension Plans
 
Non-US Pension Plans
 
Postretirement
Health
and Other
(in millions)
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Change in Benefit Obligation
 
 

 
 

 
 

 
 

 
 

 
 

Benefit obligation, beginning of year
 
$
213.7

 
$
241.4

 
$
263.2

 
$
255.0

 
$
48.5

 
$
57.5

Service cost
 

 

 
2.4

 
2.4

 
0.4

 
0.6

Interest cost
 
10.3

 
9.6

 
11.3

 
9.8

 
2.1

 
2.0

Participant contributions
 

 

 
0.1

 
0.1

 
2.3

 
2.6

Medicare subsidies received
 

 

 

 

 
0.4

 
0.4

Plan curtailments
 

 

 

 

 

 
(0.7
)
Plan settlements
 
1.7

 

 

 
(0.1
)
 

 

Plan amendments
 

 

 

 

 

 
(0.4
)
Net transfer out
 

 

 
(0.3
)
 
(0.3
)
 

 

Actuarial (gain) loss
 
30.2

 
(19.4
)
 
32.9

 
3.9

 
10.3

 
(7.2
)
Currency translation adjustment
 

 

 
(17.4
)
 
4.6

 
(0.1
)
 
(0.2
)
Benefits paid
 
(20.0
)
 
(17.9
)
 
(12.7
)
 
(12.2
)
 
(6.9
)
 
(6.1
)
Benefit obligation, end of year
 
$
235.9

 
$
213.7

 
$
279.5

 
$
263.2

 
$
57.0

 
$
48.5

Change in Plan Assets
 
 

 
 

 
 

 
 

 
 

 
 

Fair value of plan assets, beginning of year
 
$
162.6

 
$
180.6

 
$
211.1

 
$
199.5

 
$

 
$

Actual return on plan assets
 
16.1

 
(1.3
)
 
22.4

 
16.5

 

 

Employer contributions
 
1.3

 
1.2

 
4.8

 
4.2

 
4.2

 
3.1

Participant contributions
 

 

 
0.1

 
0.1

 
2.3

 
2.6

Medicare subsidies received
 

 

 

 

 
0.4

 
0.4

Plan settlements
 

 

 

 
(0.1
)
 

 

Currency translation adjustment
 

 

 
(11.7
)
 
3.5

 

 

Net transfer out
 

 

 

 
(0.4
)
 

 

Benefits paid
 
(20.0
)
 
(17.9
)
 
(12.7
)
 
(12.2
)
 
(6.9
)
 
(6.1
)
Fair value of plan assets, end of year
 
160.0

 
162.6

 
214.0

 
211.1

 

 

Funded status
 
$
(75.9
)
 
$
(51.1
)
 
$
(65.5
)
 
$
(52.1
)
 
$
(57.0
)
 
$
(48.5
)
Amounts recognized in the Consolidated Balance sheet at December 31
 
 

 
 

 
 

 
 

 
 

 
 

Pension asset
 
$

 
$

 
$

 
$
0.3

 
$

 
$

Pension obligation
 
(75.9
)
 
(51.1
)
 
(65.5
)
 
(52.4
)
 

 

Postretirement health and other benefit obligations
 

 

 

 

 
(57.0
)
 
(48.5
)
Net amount recognized
 
$
(75.9
)
 
$
(51.1
)
 
$
(65.5
)
 
$
(52.1
)
 
$
(57.0
)
 
$
(48.5
)
Weighted-Average Assumptions
 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
4.1
%
 
4.9
%
 
3.3
%
 
4.3
%
 
3.7
%
 
4.5
%
Expected return on plan assets
 
6.0
%
 
5.8
%
 
4.5
%
 
3.9
%
 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
3.9
%
 
4.3
%
 
1.5
%
 
1.5
%
Amounts recognized in accumulated other comprehensive income as of December 31, 2014 and 2013, consist of the following: 
 
 
Pensions
 
Postretirement
Health and Other
(in millions)
 
2014
 
2013
 
2014
 
2013
Net actuarial gain (loss)
 
$
(128.5
)
 
$
(93.4
)
 
$
(5.8
)
 
$
4.6

Prior service credit
 
(0.8
)
 
(1.0
)
 

 
0.3

Total amount recognized
 
$
(129.3
)
 
$
(94.4
)
 
$
(5.8
)
 
$
4.9

The following table summarizes the sensitivity of our December 31, 2014 retirement obligations and 2015 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions):
Change in assumption:
 
Estimated increase
(decrease) in 2015 pension
cost
 
Estimated increase
(decrease) in Projected
Benefit Obligation for the
year ended December 31,
2014
 
Estimated increase
(decrease) in 2015 Other
Postretirement Benefit
costs
 
Estimated increase
(decrease) in Other
Postretirement Benefit
Obligation for the year
ended December 31, 2014
0.50% increase in discount rate
 
$
(1.5
)
 
$
(31.7
)
 
$

 
$
(2.5
)
0.50% decrease in discount rate
 
2.2

 
37.5

 
0.2

 
2.7

0.50% increase in long-term return on assets
 
(1.8
)
 
N/A

 
N/A

 
N/A

0.50% decrease in long-term return on assets
 
1.8

 
N/A

 
N/A

 
N/A

1% increase in medical trend rates
 
N/A

 
N/A

 
0.9

 
5.0

1% decrease in medical trend rates
 
N/A

 
N/A

 
(0.4
)
 
(4.4
)
The actual allocations for the pension assets at December 31, 2014, and target allocations by asset class, are as follows:
 
Target Allocations
 
Weighted Average Asset Allocations
 
U.S. Plans
 
International Plans
 
U.S. Plans
 
International Plans
Equity Securities
25
%
 
0 - 25%
 
24.5
%
 
25.0
%
Debt Securities
75
%
 
0 - 100%
 
74.9
%
 
19.6
%
Other
%
 
0 - 100%
 
0.6
%
 
55.4
%
The following table presents our plan assets using the fair value hierarchy as of December 31, 2014 and 2013.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.
 
 
December 31, 2014
Assets (in millions)
 
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable Inputs
(Level 3)
 
Total
Cash
 
$
1.7

 
$

 
$

 
$
1.7

Insurance group annuity contracts
 

 

 
117.7

 
117.7

Common/collective trust funds — Government debt
 

 

 

 

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

 
47.5

 

 
47.5

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

 
109.9

 

 
109.9

Common/collective trust funds — Corporate equity
 

 
92.9

 

 
92.9

Common/collective trust funds — Customized strategy
 

 
4.3

 

 
4.3

Total
 
$
1.7

 
$
254.6

 
$
117.7

 
$
374.0

 
 
December 31, 2013
Assets (in millions)
 
Quoted Prices in Active
Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable Inputs
(Level 3)
 
Total
Cash
 
$
1.7

 
$

 
$

 
$
1.7

Insurance group annuity contracts
 

 

 
118.3

 
118.3

Common/collective trust funds — Government debt
 

 
3.0

 

 
3.0

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

 
49.6

 

 
49.6

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

 
111.6

 

 
111.6

Common/collective trust funds — Corporate equity
 

 
84.3

 

 
84.3

Common/collective trust funds — Customized strategy
 

 
5.2

 

 
5.2

Total
 
$
1.7

 
$
253.7

 
$
118.3

 
$
373.7

A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows:
 
 
Insurance Contracts
Year Ended December 31,
(in millions)
 
2014
 
2013
Beginning Balance
 
$
118.3

 
$
111.1

Actual return on assets
 
12.7

 
12.1

Benefit payments
 
(7.1
)
 
(6.8
)
Foreign currency impact
 
(6.2
)
 
1.9

Ending Balance
 
$
117.7

 
$
118.3

Projected benefit payments from the plans as of December 31, 2014 are estimated as follows:
(in millions)
 
U.S Pension Plans
 
Non-U.S. Pension
Plans
 
Postretirement
Health and Other
2015
 
$
12.3

 
$
12.7

 
$
4.4

2016
 
12.8

 
13.2

 
4.5

2017
 
13.2

 
14.3

 
4.6

2018
 
13.7

 
14.7

 
4.9

2019
 
14.1

 
15.5

 
4.9

2020 — 2024
 
73.4

 
89.1

 
21.4

The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2014 and 2013 is as follows:
 
 
U.S Pension Plans
 
Non U.S. Pension Plans
(in millions)
 
2014
 
2013
 
2014
 
2013
Projected benefit obligation
 
$
235.9

 
$
213.7

 
$
274.8

 
$
259.4

Accumulated benefit obligation
 
235.9

 
213.7

 
269.9

 
254.2

Fair value of plan assets
 
160.0

 
162.6

 
210.1

 
206.9

The contributions by the company to the multiemployer plan for the years ended December 31, 2014, 2013 and 2012 are as follows:
 (in millions)
 
 
 
 
 
Contributions by Manitowoc
Pension Fund
 
EIN / Pension Plan
Number
 
 
 
2014
 
2013
 
2012
Sheet Metal Workers’ National Pension Fund
 
52-6112463 / 001
 
 
 
$

 
$
0.3

 
$
0.9

 
 
 
 
Total Contributions
 
$

 
$
0.3

 
$
0.9

The weighted-average asset allocations of the U.S. pension plans at December 31, 2014 and 2013, by asset category are as follows:
 
 
2014
 
2013
Equity
 
24.5
%
 
26.1
%
Fixed income
 
74.9
%
 
73.4
%
Other
 
0.6
%
 
0.5
%
 
 
100.0
%
 
100.0
%
The weighted-average asset allocations of the Non U.S. pension plans at December 31, 2014 and 2013, by asset category are as follows:
 
 
2014
 
2013
Equity
 
25.0
%
 
20.2
%
Fixed income
 
19.6
%
 
23.8
%
Other
 
55.4
%
 
56.0
%
 
 
100.0
%
 
100.0
%
Leases (Tables)
Future minimum rental obligations under non-cancelable operating leases
Future minimum rental obligations under non-cancelable operating leases, as of December 31, 2014, are payable as follows:
(in millions)
 
2015
$
42.4

2016
33.5

2017
23.3

2018
17.0

2019
14.9

Thereafter
23.3

Total
$
154.4

Business Segments (Tables)
Financial information relating to the company’s reportable segments for the years ended December 31, 2014, 2013 and 2012 is as follows: 
(in millions)
 
2014
 
2013
 
2012
Net sales from continuing operations:
 
 

 
 

 
 

Crane
 
$
2,305.2

 
$
2,506.3

 
$
2,427.1

Foodservice
 
1,581.3

 
1,541.8

 
1,486.2

Total
 
$
3,886.5

 
$
4,048.1

 
$
3,913.3

Operating earnings (loss) from continuing operations:
 
 

 
 

 
 

Crane
 
$
163.9

 
$
218.8

 
$
170.5

Foodservice
 
234.0

 
250.3

 
238.6

Corporate
 
(53.4
)
 
(64.9
)
 
(63.7
)
Asset impairment expense
 
(1.1
)
 

 

Amortization expense
 
(35.1
)
 
(35.3
)
 
(36.5
)
Restructuring expense
 
(9.0
)
 
(4.8
)
 
(9.5
)
Other (expense) income
 
(0.5
)
 
0.3

 
(2.5
)
Operating earnings from continuing operations
 
$
298.8

 
$
364.4

 
$
296.9

Other income (expense):
 
 
 
 
 
 
Interest expense
 
$
(94.0
)
 
$
(128.4
)
 
$
(135.6
)
Amortization of deferred financing fees
 
(4.4
)
 
(7.0
)
 
(8.2
)
Loss on debt extinguishment
 
(25.5
)
 
(3.0
)
 
(6.3
)
Other (expense) income - net
 
(5.5
)
 
(0.8
)
 
0.1

Earnings from continuing operations before taxes on earnings
 
$
169.4

 
$
225.2

 
$
146.9

 
 
 
 
 
 
 
Capital expenditures:
 
 

 
 

 
 

Crane
 
$
57.3

 
$
69.3

 
$
52.7

Foodservice
 
25.3

 
33.6

 
17.4

Corporate
 
2.2

 
7.8

 
2.8

Total
 
$
84.8

 
$
110.7

 
$
72.9

Total depreciation:
 
 

 
 

 
 

Crane
 
$
45.7

 
$
46.9

 
$
43.5

Foodservice
 
21.2

 
20.1

 
22.3

Corporate
 
1.5

 
1.5

 
2.3

Total
 
$
68.4

 
$
68.5

 
$
68.1

Total assets:
 
 

 
 

 
 

Crane
 
$
1,742.3

 
$
1,900.4

 
$
1,903.3

Foodservice
 
1,902.0

 
1,904.3

 
1,956.8

Corporate
 
172.3

 
171.9

 
197.2

Total
 
$
3,816.6

 
$
3,976.6

 
$
4,057.3

Net sales from continuing operations and long-lived asset information by geographic area as of and for the years ended December 31 are as follows:
 
 
Net Sales
 
Long-Lived Assets
(in millions)
 
2014
 
2013
 
2012
 
2014
 
2013
United States
 
$
1,977.4

 
$
1,978.0

 
$
1,833.0

 
$
1,880.8

 
$
1,888.4

Other North America
 
238.3

 
292.1

 
278.2

 
12.4

 
13.6

Europe
 
821.2

 
937.6

 
788.0

 
478.9

 
530.0

Asia
 
377.6

 
364.5

 
354.0

 
189.7

 
203.0

Middle East
 
223.2

 
174.2

 
161.6

 
1.5

 
1.6

Central and South America
 
106.9

 
166.9

 
243.0

 
30.0

 
36.0

Africa
 
56.7

 
30.0

 
110.8

 

 

South Pacific and Caribbean
 
13.3

 
12.6

 
10.6

 
4.0

 
4.1

Australia
 
71.9

 
92.2

 
134.1

 
3.0

 
4.7

Total
 
$
3,886.5

 
$
4,048.1

 
$
3,913.3

 
$
2,600.3

 
$
2,681.4

Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 (Tables)
The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2014
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
2,424.5

 
$
2,076.1

 
$
(614.1
)
 
$
3,886.5

Costs and expenses:
 

 
 

 
 

 
 

 
 

Cost of sales

 
1,889.9

 
1,624.6

 
(614.1
)
 
2,900.4

Engineering, selling and administrative expenses
49.8

 
287.4

 
304.4

 

 
641.6

Asset impairment expense

 
1.1

 

 

 
1.1

Amortization expense

 
29.6

 
5.5

 

 
35.1

Restructuring expense

 
3.0

 
6.0

 

 
9.0

Other expense

 
0.3

 
0.2

 

 
0.5

Equity in (earnings) loss of subsidiaries
(165.6
)
 
(73.5
)
 

 
239.1

 

Total costs and expenses
(115.8
)
 
2,137.8

 
1,940.7

 
(375.0
)
 
3,587.7

Operating earnings (loss) from continuing operations
115.8

 
286.7

 
135.4

 
(239.1
)
 
298.8

Other (expense) income :
 

 
 

 
 

 
 

 
 

Interest expense
(83.8
)
 
(1.9
)
 
(8.3
)
 

 
(94.0
)
Amortization of deferred financing fees
(4.4
)
 

 

 

 
(4.4
)
Loss on debt extinguishment
(25.5
)
 

 

 

 
(25.5
)
Management fee income (expense)
62.4

 
(72.6
)
 
10.2

 

 

Other income (expense) - net
16.5

 
59.2

 
(0.5
)
 
(80.7
)
 
(5.5
)
Total other (expense) income
(34.8
)
 
(15.3
)
 
1.4

 
(80.7
)
 
(129.4
)
Earnings (loss) from continuing operations before taxes on earnings
81.0

 
271.4

 
136.8

 
(319.8
)
 
169.4

(Benefit) provision for taxes on earnings
(63.5
)
 
45.3

 
26.8

 

 
8.6

Earnings (loss) from continuing operations
144.5

 
226.1

 
110.0

 
(319.8
)
 
160.8

Discontinued operations:
 

 
 

 
 

 
 

 
 

Loss from discontinued operations, net of income taxes

 
(0.5
)
 
(0.9
)
 

 
(1.4
)
Loss on sale of discontinued operations, net of income taxes

 

 
(11.0
)
 

 
(11.0
)
Net earnings (loss)
144.5

 
225.6

 
98.1

 
(319.8
)
 
148.4

Less: Net earnings attributable to noncontrolling interest

 

 
3.9

 

 
3.9

Net earnings (loss) attributable to Manitowoc
$
144.5

 
$
225.6

 
$
94.2

 
$
(319.8
)
 
$
144.5

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to Manitowoc
$
20.9

 
$
217.8

 
$
86.0

 
$
(303.8
)
 
$
20.9


The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2013
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
2,631.3

 
$
2,097.1

 
$
(680.3
)
 
$
4,048.1

Costs and expenses:
 

 
 

 
 

 
 

 
 

Cost of sales

 
2,038.1

 
1,668.5

 
(680.3
)
 
3,026.3

Engineering, selling and administrative expenses
61.4

 
259.5

 
296.7

 

 
617.6

Amortization expense

 
29.6

 
5.7

 

 
35.3

Restructuring expense

 
0.7

 
4.1

 

 
4.8

Other expense (income)

 
0.5

 
(0.8
)
 

 
(0.3
)
Equity in (earnings) loss of subsidiaries
(199.6
)
 
(32.5
)
 

 
232.1

 

Total costs and expenses
(138.2
)
 
2,295.9

 
1,974.2

 
(448.2
)
 
3,683.7

Operating earnings (loss) from continuing operations
138.2

 
335.4

 
122.9

 
(232.1
)
 
364.4

Other (expense) income:
 

 
 

 
 

 
 

 
 

Interest expense
(118.8
)
 
(1.0
)
 
(8.6
)
 

 
(128.4
)
Amortization of deferred financing fees
(7.0
)
 

 

 

 
(7.0
)
Loss on debt extinguishment
(3.0
)
 

 

 

 
(3.0
)
Management fee income (expense)
59.6

 
(77.1
)
 
17.5

 

 

Other (expense) income - net
(3.6
)
 
(32.6
)
 
35.4

 

 
(0.8
)
Total other (expense) income
(72.8
)
 
(110.7
)
 
44.3

 

 
(139.2
)
Earnings (loss) from continuing operations before taxes on earnings
65.4

 
224.7

 
167.2

 
(232.1
)
 
225.2

(Benefit) provision for taxes on earnings
(76.4
)
 
69.3

 
43.2

 

 
36.1

Earnings (loss) from continuing operations
141.8

 
155.4

 
124.0

 
(232.1
)
 
189.1

Discontinued operations:
 

 
 

 
 

 
 

 
 

Loss from discontinued operations, net of income taxes

 
(2.3
)
 
(16.5
)
 

 
(18.8
)
Loss on sale of discontinued operations, net of income taxes

 

 
(2.7
)
 

 
(2.7
)
Net earnings (loss)
141.8

 
153.1

 
104.8

 
(232.1
)
 
167.6

Less: Net earnings attributable to noncontrolling interest

 

 
25.8

 

 
25.8

Net earnings (loss) attributable to Manitowoc
$
141.8

 
$
153.1

 
$
79.0

 
$
(232.1
)
 
$
141.8

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to Manitowoc
$
164.3

 
$
154.1

 
$
62.9

 
$
(217.0
)
 
$
164.3


The Manitowoc Company, Inc.
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2012
(In millions)
 
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$

 
$
2,616.4

 
$
1,959.0

 
$
(662.1
)
 
$
3,913.3

Costs and expenses:
 

 
 

 
 

 
 

 
 

Cost of sales

 
2,022.3

 
1,610.1

 
(662.1
)
 
2,970.3

Engineering, selling and administrative expenses
61.2

 
247.6

 
288.8

 

 
597.6

Amortization expense

 
29.9

 
6.6

 

 
36.5

Restructuring expense

 
0.7

 
8.8

 

 
9.5

Other expense

 
2.5

 

 

 
2.5

Equity in (earnings) loss of subsidiaries
(167.2
)
 
(36.0
)
 

 
203.2

 

Total costs and expenses
(106.0
)
 
2,267.0

 
1,914.3

 
(458.9
)
 
3,616.4

Operating earnings (loss) from continuing operations
106.0

 
349.4

 
44.7

 
(203.2
)
 
296.9

Other (expense) income:
 

 
 

 
 

 
 

 
 

Interest expense
(122.9
)
 
(2.1
)
 
(10.6
)
 

 
(135.6
)
Amortization of deferred financing fees
(8.2
)
 

 

 

 
(8.2
)
Loss on debt extinguishment
(6.3
)
 

 

 

 
(6.3
)
Management fee income (expense)
60.1

 
(77.8
)
 
17.7

 

 

Other income (expense) - net
16.5

 
(45.9
)
 
29.5

 

 
0.1

Total other (expense) income
(60.8
)
 
(125.8
)
 
36.6

 

 
(150.0
)
Earnings (loss) from continuing operations before taxes on earnings
45.2

 
223.6

 
81.3

 
(203.2
)
 
146.9

(Benefit) provision for taxes on earnings
(56.5
)
 
69.2

 
25.3

 

 
38.0

Earnings (loss) from continuing operations
101.7

 
154.4

 
56.0

 
(203.2
)
 
108.9

Discontinued operations:
 

 
 

 
 

 
 

 
 

Loss from discontinued operations, net of income taxes

 
(0.9
)
 
(15.4
)
 

 
(16.3
)
Net earnings (loss)
101.7

 
153.5

 
40.6

 
(203.2
)
 
92.6

Less: Net loss attributable to noncontrolling interest

 

 
(9.1
)
 

 
(9.1
)
Net earnings (loss) attributable to Manitowoc
$
101.7

 
$
153.5

 
$
49.7

 
$
(203.2
)
 
$
101.7

 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss) attributable to Manitowoc
$
97.1

 
$
153.7

 
$
51.9

 
$
(205.6
)
 
$
97.1

The Manitowoc Company, Inc.
Condensed Consolidating Balance Sheet
as of December 31, 2014
(In millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 

 
 

 
 

 
 

 
 

Current Assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
1.6

 
$
3.3

 
$
63.1

 
$

 
$
68.0

Restricted cash
2.8

 

 
20.9

 

 
23.7

Accounts receivable — net
0.1

 

 
233.6

 
(6.3
)
 
227.4

Intercompany short term note receivable

 

 
201.7

 
(201.7
)
 

Intercompany interest receivable
41.5

 
3.2

 

 
(44.7
)
 

Inventories — net

 
306.3

 
338.2

 

 
644.5

Deferred income taxes
67.1

 

 
4.2

 

 
71.3

Other current assets
3.6

 
6.7

 
140.9

 

 
151.2

Current assets of discontinued operation

 

 

 

 

Total current assets
116.7

 
319.5

 
1,002.6

 
(252.7
)
 
1,186.1

Property, plant and equipment — net
7.7

 
325.8

 
257.5

 

 
591.0

Goodwill

 
960.5

 
237.6

 

 
1,198.1

Other intangible assets — net

 
561.6

 
153.1

 

 
714.7

Intercompany long-term notes receivable
892.5

 
195.3

 
851.3

 
(1,939.1
)
 

Intercompany accounts receivable

 
1,619.7

 
796.8

 
(2,416.5
)
 

Other non-current assets
66.7

 
3.1

 
56.9

 

 
126.7

Long-term assets of discontinued operation

 

 

 

 

Investment in affiliates
4,423.6

 
3,629.4

 

 
(8,053.0
)
 

Total assets
$
5,507.2

 
$
7,614.9

 
$
3,355.8

 
$
(12,661.3
)
 
$
3,816.6

Liabilities and Equity
 

 
 

 
 

 
 

 
 

Current Liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable and accrued expenses
$
27.1

 
$
420.8

 
$
365.8

 
$
(6.3
)
 
$
807.4

Short-term borrowings and current portion of long-term debt
24.1

 
2.8

 
53.4

 

 
80.3

Intercompany short term note payable
201.7

 

 

 
(201.7
)
 

Intercompany interest payable
3.2

 

 
41.5

 
(44.7
)
 

Product warranties

 
45.2

 
32.5

 

 
77.7

Customer advances

 
7.3

 
14.0

 

 
21.3

Product liabilities

 
22.1

 
2.5

 

 
24.6

Current liabilities of discontinued operation

 

 

 

 

Total current liabilities
256.1

 
498.2

 
509.7

 
(252.7
)
 
1,011.3

Non-Current Liabilities:
 

 
 

 
 

 
 

 
 

Long-term debt, less current portion
1,393.0

 
25.3

 
24.9

 

 
1,443.2

Deferred income taxes
165.2

 

 
21.0

 

 
186.2

Pension obligations
129.1

 
7.9

 
4.0

 

 
141.0

Postretirement health and other benefit obligations
49.5

 
2.1

 
1.5

 

 
53.1

Long-term deferred revenue

 
10.7

 
27.2

 

 
37.9

Intercompany long-term note payable
191.0

 
813.5

 
934.6

 
(1,939.1
)
 

Intercompany accounts payable
2,416.5

 

 

 
(2,416.5
)
 

Other non-current liabilities
82.7

 
11.5

 
25.6

 

 
119.8

Long-term liabilities of discontinued operation

 

 

 

 

Total non-current liabilities
4,427.0

 
871.0

 
1,038.8

 
(4,355.6
)
 
1,981.2

Equity
 

 
 

 
 

 
 

 
 

Manitowoc stockholders’ equity
824.1

 
6,245.7

 
1,807.3

 
(8,053.0
)
 
824.1

Noncontrolling interest

 

 

 

 

Total equity
824.1

 
6,245.7

 
1,807.3

 
(8,053.0
)
 
824.1

Total liabilities and equity
$
5,507.2

 
$
7,614.9

 
$
3,355.8

 
$
(12,661.3
)
 
$
3,816.6

The Manitowoc Company, Inc.
Condensed Consolidating Balance Sheet
as of December 31, 2013
(In millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 

 
 

 
 

 
 

 
 

Current Assets:
 

 
 

 
 

 
 

 
 

Cash and cash equivalents
$
1.2

 
$
3.3

 
$
50.4

 
$

 
$
54.9

Restricted cash
2.8

 

 
10.0

 

 
12.8

Accounts receivable — net
0.2

 
16.5

 
238.8

 

 
255.5

Intercompany short term note receivable

 

 
112.1

 
(112.1
)
 

Intercompany interest receivable
18.4

 
3.2

 

 
(21.6
)
 

Inventories — net

 
333.4

 
387.4

 

 
720.8

Deferred income taxes
73.2

 

 
16.7

 

 
89.9

Other current assets
3.4

 
5.9

 
104.6

 

 
113.9

Current assets of discontinued operations

 

 
15.1

 

 
15.1

Total current assets
99.2

 
362.3

 
935.1

 
(133.7
)
 
1,262.9

Property, plant and equipment — net
6.3

 
291.9

 
280.6

 

 
578.8

Goodwill

 
960.5

 
258.1

 

 
1,218.6

Other intangible assets — net

 
591.3

 
174.9

 

 
766.2

Intercompany long-term notes receivable
964.4

 
158.5

 
903.7

 
(2,026.6
)
 

Intercompany accounts receivable

 
1,565.2

 
1,848.8

 
(3,414.0
)
 

Other non-current assets
42.9

 
3.4

 
80.5

 

 
126.8

Long-term assets of discontinued operations

 

 
23.3

 

 
23.3

Investment in affiliates
5,356.2

 
3,505.6

 

 
(8,861.8
)
 

Total assets
$
6,469.0

 
$
7,438.7

 
$
4,505.0

 
$
(14,436.1
)
 
$
3,976.6

Liabilities and Equity
 

 
 

 
 

 
 

 
 

Current Liabilities:
 

 
 

 
 

 
 

 
 

Accounts payable and accrued expenses
$
108.1

 
$
404.2

 
$
423.3

 
$

 
$
935.6

Short-term borrowings and current portion of long-term debt

 
0.7

 
22.0

 

 
22.7

Intercompany short-term note payable
112.1

 

 

 
(112.1
)
 

Intercompany interest payable
3.2

 

 
18.4

 
(21.6
)
 

Product warranties

 
47.3

 
33.8

 

 
81.1

Customer advances

 
12.9

 
22.0

 

 
34.9

Product liabilities

 
21.2

 
3.8

 

 
25.0

Current liabilities of discontinued operations

 

 
26.1

 

 
26.1

Total current liabilities
223.4

 
486.3

 
549.4

 
(133.7
)
 
1,125.4

Non-Current Liabilities:
 

 
 

 
 

 
 

 
 

Long-term debt, less current portion
1,474.7

 
2.2

 
27.2

 

 
1,504.1

Deferred income taxes
165.2

 

 
49.1

 

 
214.3

Pension obligations
91.0

 
6.4

 
4.1

 

 
101.5

Postretirement health and other benefit obligations
40.6

 
2.1

 
2.0

 

 
44.7

Long-term deferred revenue

 
9.2

 
28.4

 

 
37.6

Intercompany long-term note payable
183.3

 
832.2

 
1,011.1

 
(2,026.6
)
 

Intercompany accounts payable
3,414.0

 

 

 
(3,414.0
)
 

Other non-current liabilities
101.3

 
15.6

 
47.6

 

 
164.5

Long-term liabilities of discontinued operations

 

 
2.2

 

 
2.2

Total non-current liabilities
5,470.1

 
867.7

 
1,171.7

 
(5,440.6
)
 
2,068.9

Equity
 

 
 

 
 

 
 

 
 

Manitowoc stockholders’ equity
775.5

 
6,084.7

 
2,777.1

 
(8,861.8
)
 
775.5

Noncontrolling interest

 

 
6.8

 

 
6.8

Total equity
775.5

 
6,084.7

 
2,783.9

 
(8,861.8
)
 
782.3

Total liabilities and equity
$
6,469.0

 
$
7,438.7

 
$
4,505.0

 
$
(14,436.1
)
 
$
3,976.6

The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2014
(In millions)
 
 
Parent
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash (used for) provided by operating activities of continuing operations
$
(124.3
)
 
$
243.4

 
$
67.0

 
$
(80.7
)
 
$
105.4

Cash used for operating activities of discontinued operations

 
(0.4
)
 
(6.7
)
 

 
(7.1
)
Net cash (used for) provided by operating activities
$
(124.3
)
 
$
243.0

 
$
60.3

 
$
(80.7
)
 
$
98.3

Cash Flows from Investing:
 

 
 

 
 

 
 

 
 

Capital expenditures
$
(2.2
)
 
$
(51.3
)
 
$
(31.3
)
 
$

 
$
(84.8
)
Proceeds from sale of property, plant and equipment

 
0.1

 
12.7

 

 
12.8

Restricted cash

 

 
(11.6
)
 

 
(11.6
)
Intercompany investments
77.4

 
(213.9
)
 
118.8

 
17.7

 

Net cash provided by (used for) investing activities
$
75.2

 
$
(265.1
)
 
$
88.6

 
$
17.7

 
$
(83.6
)
Cash Flows from Financing:
 

 
 

 
 

 
 

 
 

Payments on long-term debt
$
(607.7
)
 
$
(1.7
)
 
$
(29.3
)
 
$

 
$
(638.7
)
Proceeds from long-term debt
550.0

 
26.8

 
63.5

 

 
640.3

Payments on notes financing—net

 

 
(0.3
)
 

 
(0.3
)
Debt issue costs
(5.2
)
 

 

 

 
(5.2
)
Dividends paid
(10.8
)
 

 
(80.7
)
 
80.7

 
(10.8
)
Exercises of stock options including windfall tax benefits
25.9

 

 

 

 
25.9

Intercompany financing
97.3

 
(3.0
)
 
(76.6
)
 
(17.7
)
 

Net cash provided by (used for) financing activities of continuing operations
$
49.5

 
$
22.1

 
$
(123.4
)
 
$
63.0

 
$
11.2

Net cash used for financing activities of discontinued operations
$

 
$

 
$
(7.2
)
 
$

 
$
(7.2
)
Net cash provided by (used for) financing activities
$
49.5

 
$
22.1

 
$
(130.6
)
 
$
63.0

 
$
4.0

Effect of exchange rate changes on cash

 

 
(5.6
)
 

 
(5.6
)
Net increase in cash and cash equivalents
0.4

 

 
12.7

 

 
13.1

Balance at beginning of period
1.2

 
3.3

 
50.4

 

 
54.9

Balance at end of period
$
1.6

 
$
3.3

 
$
63.1

 
$

 
$
68.0

The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2013
(In millions)
 
 
Parent
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash (used for) provided by operating activities of continuing operations
$
(51.6
)
 
$
224.9

 
$
160.8

 
$

 
$
334.1

Cash used for operating activities of discontinued operations

 
(2.3
)
 
(8.7
)
 

 
(11.0
)
Net cash (used for) provided by operating activities
$
(51.6
)
 
$
222.6

 
$
152.1

 
$

 
$
323.1

Cash Flows from Investing:
 

 
 

 
 

 
 

 
 

Capital expenditures
$
(0.8
)
 
$
(57.4
)
 
$
(52.5
)
 
$

 
$
(110.7
)
Proceeds from sale of property, plant and equipment

 
2.0

 
2.1

 

 
4.1

Restricted cash
2.6

 

 
(4.6
)
 

 
(2.0
)
Business acquisitions, net of cash acquired

 

 
(12.2
)
 

 
(12.2
)
Proceeds from sale of business

 

 
39.2

 

 
39.2

Intercompany investments
197.1

 
(167.2
)
 
(169.3
)
 
139.4

 

Net cash provided by (used for) investing activities of continuing operations
198.9

 
(222.6
)
 
(197.3
)
 
139.4

 
(81.6
)
Net cash used for investing activities of discontinued operations

 

 
(0.6
)
 

 
(0.6
)
Net cash provided by (used for) investing activities
$
198.9

 
$
(222.6
)
 
$
(197.9
)
 
$
139.4

 
$
(82.2
)
Cash Flows from Financing:
 

 
 

 
 

 
 

 
 

Payments on long-term debt
$
(220.6
)
 
$
(0.7
)
 
$
(45.2
)
 
$

 
$
(266.5
)
Proceeds from long-term debt

 

 
43.0

 

 
43.0

(Payments on) proceeds from revolving credit facility—net
(34.5
)
 

 
0.1

 

 
(34.4
)
Proceeds from notes financing—net

 

 
6.6

 

 
6.6

Debt issue costs
(1.1
)
 

 

 

 
(1.1
)
Dividends paid
(10.7
)
 

 

 

 
(10.7
)
Exercises of stock options including windfall tax benefits
6.7

 

 

 

 
6.7

Intercompany financing
102.1

 

 
37.3

 
(139.4
)
 

Net cash (used for) provided by financing activities
$
(158.1
)
 
$
(0.7
)
 
$
41.8

 
$
(139.4
)
 
$
(256.4
)
Effect of exchange rate changes on cash

 

 
(2.8
)
 

 
(2.8
)
Net decrease in cash and cash equivalents
(10.8
)
 
(0.7
)
 
(6.8
)
 

 
(18.3
)
Balance at beginning of period
12.0

 
4.0

 
57.2

 

 
73.2

Balance at end of period
$
1.2

 
$
3.3

 
$
50.4

 
$

 
$
54.9


The Manitowoc Company, Inc.
Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2012
(In millions)
 
 
Parent
 
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash (used for) provided by operating activities of continuing operations
$
(22.8
)
 
$
167.4

 
$
30.7

 
$

 
$
175.3

Cash used for operating activities of discontinued operations

 
(0.9
)
 
(12.0
)
 

 
(12.9
)
Net cash (used for) provided by operating activities
$
(22.8
)
 
$
166.5

 
$
18.7

 
$

 
$
162.4

Cash Flows from Investing:
 

 
 

 
 

 
 

 
 

Capital expenditures
$
(1.4
)
 
$
(36.5
)
 
$
(35.0
)
 
$

 
$
(72.9
)
Proceeds from sale of property, plant and equipment

 

 
0.8

 

 
0.8

Restricted cash
1.0

 

 
(4.3
)
 

 
(3.3
)
Intercompany investments
131.4

 
(175.4
)
 
(4.8
)
 
48.8

 

Net cash provided by (used for) investing activities of continuing operations
131.0

 
(211.9
)
 
(43.3
)
 
48.8

 
(75.4
)
Net cash used for investing activities of discontinued operations

 

 
(0.1
)
 

 
(0.1
)
Net cash provided by (used for) investing activities
$
131.0

 
$
(211.9
)
 
$
(43.4
)
 
$
48.8

 
$
(75.5
)
Cash Flows from Financing:
 

 
 

 
 

 
 

 
 

Payments on long-term debt
$
(439.7
)
 
$
(0.7
)
 
$
(55.0
)
 
$

 
$
(495.4
)
Proceeds from long-term debt
300.0

 

 
83.3

 

 
383.3

Proceeds from revolving credit facility—net
34.4

 

 

 

 
34.4

Payments on notes financing—net

 
(2.1
)
 
(8.3
)
 

 
(10.4
)
Proceeds from swap monetization
14.8

 

 

 

 
14.8

Debt issue costs
(5.7
)
 

 

 

 
(5.7
)
Dividends paid
(10.6
)
 

 

 

 
(10.6
)
Exercises of stock options including windfall tax benefits
6.4

 

 

 

 
6.4

Intercompany financing

 
43.7

 
5.1

 
(48.8
)
 

Net cash (provided by) used for financing activities
$
(100.4
)
 
$
40.9

 
$
25.1

 
$
(48.8
)
 
$
(83.2
)
Effect of exchange rate changes on cash

 

 
1.2

 

 
1.2

Net increase (decrease) in cash and cash equivalents
7.8

 
(4.5
)
 
1.6

 

 
4.9

Balance at beginning of period
4.2

 
8.5

 
55.6

 

 
68.3

Balance at end of period
$
12.0

 
$
4.0

 
$
57.2

 
$

 
$
73.2

Quarterly Financial Data (Unaudited) (Tables)
Schedule of quarterly financial data
The following table presents quarterly financial data for 2014 and 2013:
 
 
2014
 
2013
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
 
First
 
Second
 
Third
 
Fourth
Net sales
 
$
850.0

 
$
1,012.8

 
$
986.3

 
$
1,037.4

 
$
894.6

 
$
1,037.1

 
$
1,012.1

 
$
1,104.3

Gross profit
 
227.1

 
272.3

 
245.2

 
241.5

 
222.1

 
276.0

 
262.1

 
261.6

Earnings from continuing operations before taxes on earnings
 
8.6

 
66.1

 
56.3

 
38.4

 
22.3

 
71.4

 
70.8

 
60.7

Discontinued operations:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

(Loss) earnings from discontinued operations, net of income taxes
 
(1.0
)
 
(0.3
)
 
(0.2
)
 
0.1

 
(4.1
)
 
(7.6
)
 
(3.2
)
 
(3.9
)
Loss on sale of discontinued operations, net of income taxes
 
(9.9
)
 

 
(1.1
)
 

 
(1.6
)
 

 

 
(1.1
)
Net (loss) earnings
 
(4.9
)
 
46.6

 
73.1

 
33.6

 
8.1

 
54.5

 
50.6

 
54.4

Less: Earnings (loss) attributable to noncontrolling interest, net of tax
 
3.9

 

 

 

 
(2.3
)
 
(3.1
)
 
(2.3
)
 
33.5

Net (loss) earnings attributable to Manitowoc
 
$
(8.8
)
 
$
46.6

 
$
73.1

 
$
33.6

 
$
10.4

 
$
57.6

 
$
52.9

 
$
20.9

Basic earnings per share:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Earnings from continuing operations attributable to Manitowoc common shareholders
 
$
0.01

 
$
0.35

 
$
0.55

 
$
0.25

 
$
0.11

 
$
0.47

 
$
0.41

 
$
0.18

Discontinued operations:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loss from discontinued operations attributable to Manitowoc common shareholders
 

 

 

 

 
(0.02
)
 
(0.04
)
 
(0.01
)
 
(0.02
)
Loss on sale of discontinued operations, net of income taxes
 
(0.07
)
 

 
(0.01
)
 

 
(0.01
)
 

 

 
(0.01
)
(Loss) earnings per share attributable to Manitowoc common shareholders
 
$
(0.07
)
 
$
0.35

 
$
0.54

 
$
0.25

 
$
0.08

 
$
0.43

 
$
0.40

 
$
0.16

Diluted earnings per share:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Earnings from continuing operations attributable to Manitowoc common shareholders
 
$
0.01

 
$
0.34

 
$
0.54

 
$
0.24

 
$
0.10

 
$
0.46

 
$
0.40

 
$
0.18

Discontinued operations:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loss from discontinued operations attributable to Manitowoc common shareholders
 

 

 

 

 
(0.02
)
 
(0.04
)
 
(0.01
)
 
(0.02
)
Loss on sale of discontinued operations, net of income taxes
 
(0.07
)
 

 
(0.01
)
 

 
(0.01
)
 

 

 
(0.01
)
(Loss) earnings per share attributable to Manitowoc common shareholders
 
$
(0.06
)
 
$
0.34

 
$
0.53

 
$
0.25

 
$
0.08

 
$
0.43

 
$
0.39

 
$
0.15

Dividends per common share
 
$

 
$

 
$

 
$
0.08

 
$

 
$

 
$

 
$
0.08



Company and Basis of Presentation (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
market
Dec. 31, 2013
Dec. 31, 2012
Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Number of principal markets of the entity
 
 
 
 
 
 
 
 
 
 
Proceeds from sale of business
 
 
 
 
 
 
 
 
$ 0 
$ 39.2 
$ 0 
Loss on sale of discontinued operations, net of income taxes
(1.1)
(9.9)
(1.1)
(1.6)
(11.0)
(2.7)
Discontinued Operation, Tax Effect of Loss from Disposal of Discontinued Operation
 
 
 
 
 
 
 
 
(0.6)
4.4 
Manitowoc Dong Yue [Member]
 
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Ownership Percentage by Parent
 
 
 
 
50.00% 
 
 
 
 
50.00% 
 
Jackson
 
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sale of business
 
 
 
 
 
 
 
 
 
39.2 
 
Loss on sale of discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
 
 
$ 0 
Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Engineering drawings
Dec. 31, 2014
Minimum
Patents
Dec. 31, 2014
Minimum
Customer relationships
Dec. 31, 2014
Maximum
Patents
Dec. 31, 2014
Maximum
Customer relationships
Inventories
 
 
 
 
 
 
 
Percentage of the company's inventories valued using the first-in, first-out (FIFO) method
84.00% 
87.00% 
 
 
 
 
 
Increase in inventories if the FIFO inventory valuation method had been used exclusively
$ 36.2 
$ 36.2 
 
 
 
 
 
Estimated useful lives of other intangible assets
 
 
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
15 years 
10 years 
10 years 
20 years 
20 years 
Summary of Significant Accounting Policies (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
estimate
Dec. 31, 2013
Estimated useful lives of property, plant and equipment
 
 
Property, plant and equipment, net of accumulated depreciation
$ 591.0 
$ 578.8 
Product Liabilities
 
 
Number of estimates upon which the product liability reserves are based
 
Assets Leased to Others [Member]
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, plant and equipment, net of accumulated depreciation
$ 83.4 
$ 63.1 
Minimum |
Building and improvements
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, Plant and Equipment, Useful Lives
2 years 
 
Minimum |
Machinery, equipment and tooling
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, Plant and Equipment, Useful Lives
2 years 
 
Minimum |
Furniture and fixtures
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, Plant and Equipment, Useful Lives
3 years 
 
Minimum |
Computer hardware and software
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, Plant and Equipment, Useful Lives
2 years 
 
Maximum |
Building and improvements
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, Plant and Equipment, Useful Lives
40 years 
 
Maximum |
Machinery, equipment and tooling
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, Plant and Equipment, Useful Lives
20 years 
 
Maximum |
Furniture and fixtures
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, Plant and Equipment, Useful Lives
15 years 
 
Maximum |
Computer hardware and software
 
 
Estimated useful lives of property, plant and equipment
 
 
Property, Plant and Equipment, Useful Lives
7 years 
 
Summary of Significant Accounting Policies (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock-Based Compensation
 
 
 
Stock-based compensation expense
$ 12.6 
$ 14.9 
$ 16.4 
Research and Development
 
 
 
Research and development costs
87.4 
86.4 
87.7 
Restricted Stock [Member]
 
 
 
Stock-Based Compensation
 
 
 
Stock-based compensation expense
1.0 
2.8 
4.5 
Stock Options
 
 
 
Stock-Based Compensation
 
 
 
Stock-based compensation expense
5.7 
6.3 
6.7 
Performance shares
 
 
 
Stock-Based Compensation
 
 
 
Stock-based compensation expense
$ 5.9 
$ 5.8 
$ 5.2 
Acquisitions (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Inducs, AG (Inducs)
Oct. 2, 2013
Inducs, AG (Inducs)
Acquisitions
 
 
 
 
 
Payments to Acquire Businesses, Net of Cash Acquired
$ 0 
$ 12.2 
$ 0 
$ 12.2 
 
Goodwill
1,198.1 
1,218.6 
 
 
5.0 
Purchase price allocated to intangible assets
$ 714.7 
$ 766.2 
 
 
 
Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Results of discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Repayments of Long-term Debt
 
 
 
 
 
 
 
 
$ 638.7 
$ 266.5 
$ 495.4 
Guarantor Obligations, Maximum Exposure, Undiscounted
58.9 
 
 
 
66.8 
 
 
 
58.9 
66.8 
 
Sale price of discontinued operations
 
 
 
 
 
 
 
 
39.2 
Loss on sale of discontinued operations
1.1 
9.9 
1.1 
1.6 
11.0 
2.7 
Loss on sale of discontinued operations, income taxes
 
 
 
 
 
 
 
 
(0.6)
4.4 
Manitowoc Dong Yue [Member]
 
 
 
 
 
 
 
 
 
 
 
Results of discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Ownership Percentage by Parent
 
 
 
 
50.00% 
 
 
 
 
50.00% 
 
Intercompany debt and accrued interest forgiveness
 
 
 
 
 
 
 
 
 
71.3 
 
Intercompany debt and accrued interest forgiveness attributable to noncontrolling interest
 
 
 
 
 
 
 
 
 
35.6 
 
Repayments of Long-term Debt
 
 
 
 
 
 
 
 
7.2 
 
 
Guarantor Obligations, Maximum Exposure, Undiscounted
17.3 
 
 
 
 
 
 
 
17.3 
 
 
Net sales
 
 
 
 
 
 
 
 
0.3 
16.8 
13.7 
Pretax earnings (loss) from discontinued operation
 
 
 
 
 
 
 
 
(0.8)
(17.3)
(16.6)
Provision (benefit) for taxes on earnings
 
 
 
 
 
 
 
 
(0.3)
Net earnings (loss) from discontinued operation
 
 
 
 
 
 
 
 
(0.8)
(17.0)
(16.6)
Manitowoc Dong Yue [Member] |
Trademarks [Member]
 
 
 
 
 
 
 
 
 
 
 
Results of discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Impairment of Intangible Assets, Finite-lived
 
 
 
 
1.2 
 
 
 
 
 
 
Impairment of intangible assets, indefinite-lived (excluding goodwill) attributable to noncontrolling
 
 
 
 
0.6 
 
 
 
 
 
 
Jackson
 
 
 
 
 
 
 
 
 
 
 
Results of discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
2.5 
32.6 
Pretax earnings (loss) from discontinued operation
 
 
 
 
 
 
 
 
0.1 
1.7 
Provision (benefit) for taxes on earnings
 
 
 
 
 
 
 
 
(0.4)
0.7 
Net earnings (loss) from discontinued operation
 
 
 
 
 
 
 
 
0.5 
1.0 
Sale price of discontinued operations
 
 
 
 
 
 
 
 
 
39.2 
 
Loss on sale of discontinued operations
 
 
 
 
 
 
 
 
 
 
Business disposed prior to 2012
 
 
 
 
 
 
 
 
 
 
 
Results of discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
Pretax earnings (loss) from discontinued operation
 
 
 
 
 
 
 
 
(0.9)
(3.4)
(1.2)
Provision (benefit) for taxes on earnings
 
 
 
 
 
 
 
 
(0.3)
(1.1)
(0.5)
Net earnings (loss) from discontinued operation
 
 
 
 
 
 
 
 
(0.6)
(2.3)
(0.7)
Loss on sale of discontinued operations
 
 
 
 
 
 
 
 
1.1 
 
 
Loss on sale of discontinued operations, income taxes
 
 
 
 
 
 
 
 
$ 0.6 
 
 
Fair Value of Financial Instruments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets
$ 1,186.1 
$ 1,262.9 
Total current liabilities
1,011.3 
1,125.4 
Total non-current liabilities
1,981.2 
2,068.9 
Senior Notes 9.50% due 2018
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Debt instruments at fair value
 
423.1 
Senior Notes 8.50% due 2020
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Debt instruments at fair value
651.6 
677.6 
Senior notes 5.875% due 2022
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Debt instruments at fair value
309.1 
303.9 
Term loan A
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Debt instruments at fair value
327.8 
161.9 
Term loan B
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Debt instruments at fair value
165.0 
Fair value measurement on recurring basis |
Level 1
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Assets, Noncurrent
 
Total current assets
Total current liabilities
Total non-current liabilities
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
 
 
Derivative Asset, Current
Derivative liabilities, current
Fair value measurement on recurring basis |
Level 1 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
 
Derivative liabilities, current
Non-current derivative liabilities at fair value
 
Fair value measurement on recurring basis |
Level 1 |
Interest Rate Swap [Member]
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
 
Derivative liabilities, current
 
Non-current derivative liabilities at fair value
Fair value measurement on recurring basis |
Level 2
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Assets, Noncurrent
0.8 
 
Total current assets
2.1 
3.1 
Total current liabilities
11.2 
1.5 
Total non-current liabilities
4.7 
14.9 
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
 
 
Derivative Asset, Current
2.1 
2.9 
Derivative liabilities, current
7.9 
1.1 
Fair value measurement on recurring basis |
Level 2 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
 
0.2 
Derivative liabilities, current
1.0 
0.4 
Non-current derivative liabilities at fair value
0.4 
 
Fair value measurement on recurring basis |
Level 2 |
Interest Rate Swap [Member]
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
0.8 
 
Derivative liabilities, current
2.3 
 
Non-current derivative liabilities at fair value
4.3 
14.9 
Fair value measurement on recurring basis |
Level 3
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Assets, Noncurrent
 
Total current assets
Total current liabilities
Total non-current liabilities
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
 
 
Derivative Asset, Current
Derivative liabilities, current
Fair value measurement on recurring basis |
Level 3 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
 
Derivative liabilities, current
Non-current derivative liabilities at fair value
 
Fair value measurement on recurring basis |
Level 3 |
Interest Rate Swap [Member]
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
 
Derivative liabilities, current
 
Non-current derivative liabilities at fair value
Fair value measurement on recurring basis |
Total
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Assets, Noncurrent
0.8 
 
Total current assets
2.1 
3.1 
Total current liabilities
11.2 
1.5 
Total non-current liabilities
4.7 
14.9 
Fair value measurement on recurring basis |
Total |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
2.1 
2.9 
Derivative liabilities, current
7.9 
1.1 
Fair value measurement on recurring basis |
Total |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
 
0.2 
Derivative liabilities, current
1.0 
0.4 
Non-current derivative liabilities at fair value
0.4 
 
Fair value measurement on recurring basis |
Total |
Interest Rate Swap [Member]
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Derivative Asset, Current
0.8 
 
Derivative liabilities, current
2.3 
 
Non-current derivative liabilities at fair value
$ 4.3 
$ 14.9 
Derivative Financial Instruments (Details)
3 Months Ended 12 Months Ended 12 Months Ended
Sep. 30, 2011
Dec. 31, 2014
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2014
Interest rate cap contracts
USD ($)
Dec. 31, 2013
Interest rate cap contracts
USD ($)
Dec. 31, 2012
Interest rate swap contracts - Fixed-to-float/Float-to-fixed
USD ($)
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Commodity [Member]
USD ($)
Dec. 31, 2014
Aluminum
Designated as Hedging Instrument [Member]
t
Dec. 31, 2013
Aluminum
Designated as Hedging Instrument [Member]
t
Dec. 31, 2014
Copper
Designated as Hedging Instrument [Member]
t
Dec. 31, 2013
Copper
Designated as Hedging Instrument [Member]
t
Dec. 31, 2014
Natural Gas
Designated as Hedging Instrument [Member]
MMBTU
Dec. 31, 2013
Natural Gas
Designated as Hedging Instrument [Member]
MMBTU
Dec. 31, 2014
Steel
Designated as Hedging Instrument [Member]
T
Dec. 31, 2013
Steel
Designated as Hedging Instrument [Member]
T
Dec. 31, 2014
European Euro
Designated as Hedging Instrument [Member]
EUR (€)
Dec. 31, 2013
European Euro
Designated as Hedging Instrument [Member]
EUR (€)
Dec. 31, 2014
European Euro
Not designated as hedging instruments
EUR (€)
Dec. 31, 2013
European Euro
Not designated as hedging instruments
EUR (€)
Dec. 31, 2014
South Korean Won
Designated as Hedging Instrument [Member]
KRW (?)
Dec. 31, 2013
South Korean Won
Designated as Hedging Instrument [Member]
KRW (?)
Dec. 31, 2014
Singapore Dollar
Designated as Hedging Instrument [Member]
SGD ($)
Dec. 31, 2013
Singapore Dollar
Designated as Hedging Instrument [Member]
SGD ($)
Dec. 31, 2014
United States Dollar
Designated as Hedging Instrument [Member]
USD ($)
Dec. 31, 2013
United States Dollar
Designated as Hedging Instrument [Member]
USD ($)
Dec. 31, 2014
United States Dollar
Not designated as hedging instruments
USD ($)
Dec. 31, 2013
United States Dollar
Not designated as hedging instruments
USD ($)
Dec. 31, 2014
Mexico, Pesos
Designated as Hedging Instrument [Member]
MXN ($)
Dec. 31, 2014
Mexico, Pesos
Not designated as hedging instruments
MXN ($)
Dec. 31, 2014
Canada, Dollars
Designated as Hedging Instrument [Member]
CAD ($)
Dec. 31, 2013
Canada, Dollars
Designated as Hedging Instrument [Member]
CAD ($)
Dec. 31, 2014
Canada, Dollars
Not designated as hedging instruments
CAD ($)
Dec. 31, 2013
Chinese Renminbi
Not designated as hedging instruments
CNY
Dec. 31, 2014
Australia, Dollars
Not designated as hedging instruments
AUD ($)
Dec. 31, 2013
Australia, Dollars
Not designated as hedging instruments
AUD ($)
Dec. 31, 2014
Derivatives in Cash Flow Hedging Relationships
Term Loan A [Member]
USD ($)
Dec. 31, 2013
Derivatives in Cash Flow Hedging Relationships
Term Loan A [Member]
USD ($)
Dec. 31, 2014
Fair Value Hedging [Member]
2020 Notes
USD ($)
Dec. 31, 2014
Fair Value Hedging [Member]
2022 Notes
USD ($)
Derivative financial instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Asset, Current
 
 
 
 
 
 
$ 200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
(6,200,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hedge period, low end of the range (in months)
 
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hedge period, high end of the range (in months)
 
24 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity units hedged
 
 
 
 
 
 
 
1,657 
1,622 
820 
382 
347,608 
214,277 
14,665 
11,503 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
89,006,695 
74,934,975 
73,302,332 
31,738,273 
1,964,906,996 
1,258,808,642 
3,900,000 
5,280,000 
29,228,731 
42,200,000 
18,244,912 
29,091,053 
52,674,387 
3,151,000 
7,984,824 
11,011,092 
2,516 
125,000,000 
2,482,430 
1,000,000 
175,000,000 
75,000,000 
125,000,000 
Cap on interest rate (as a percent)
 
 
 
3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Description of Variable Rate Basis (Deprecated 2014-01-31)
one-month LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium paid to enter into interest rate cap derivative contract
 
 
 
700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Fixed Interest Rate Plus Applicable Spread
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.635% 
 
 
 
Proceeds from monetization of derivative asset related to the fixed-to-float interest rate swaps
 
 
$ 14,800,000 
 
 
$ 14,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Fixed Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.31% 
5.186% 
Derivative Financial Instruments (Details 2) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Fair value of outstanding derivatives
 
 
Asset derivatives
$ 2.9 
$ 3.1 
Liability derivatives
15.9 
16.4 
Designated as Hedging Instrument [Member]
 
 
Fair value of outstanding derivatives
 
 
Asset derivatives
0.8 
2.5 
Liability derivatives
14.6 
15.8 
Designated as Hedging Instrument [Member] |
Foreign Exchange Contract [Member]
 
 
Fair value of outstanding derivatives
 
 
Foreign exchange contracts
 
2.3 
Derivative liabilities
6.6 
0.5 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member]
 
 
Fair value of outstanding derivatives
 
 
Derivative liabilities
2.3 
 
Designated as Hedging Instrument [Member] |
Commodity contracts
 
 
Fair value of outstanding derivatives
 
 
Derivative liabilities
1.0 
0.4 
Designated as Hedging Instrument [Member] |
Interest rate swap contracts - Fixed-to-float/Float-to-fixed
 
 
Fair value of outstanding derivatives
 
 
Foreign exchange contracts
 
0.2 
Not designated as hedging instruments
 
 
Fair value of outstanding derivatives
 
 
Asset derivatives
2.1 
0.6 
Liability derivatives
1.3 
0.6 
Not designated as hedging instruments |
Foreign Exchange Contract [Member]
 
 
Fair value of outstanding derivatives
 
 
Foreign exchange contracts
2.1 
0.6 
Derivative liabilities
1.3 
0.6 
Not designated as hedging instruments |
Interest Rate Swap [Member]
 
 
Fair value of outstanding derivatives
 
 
Current derivative assets
0.8 
 
Fair Value Hedging [Member] |
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member]
 
 
Fair value of outstanding derivatives
 
 
Non-current derivative liabilities at fair value
4.3 
14.9 
Fair Value Hedging [Member] |
Designated as Hedging Instrument [Member] |
Commodity contracts
 
 
Fair value of outstanding derivatives
 
 
Non-current derivative liabilities at fair value
$ 0.4 
 
Derivative Financial Instruments (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Gain (loss) of derivatives instruments
 
 
 
Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
$ (0.1)
$ 0 
$ 0 
Gain (loss) of derivatives instruments NOT designated as hedging instrument
0.8 
0.2 
10.5 
Derivatives in Cash Flow Hedging Relationships
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion, net of tax)
(7.0)
0.1 
5.0 
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
(4.1)
1.4 
(9.9)
Derivatives in Fair Value Hedging Relationships
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Gain (Loss) on Fair Value Hedges Recognized in Earnings
10.6 
(13.7)
(1.7)
Foreign Exchange Contract [Member]
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Gain (loss) of derivatives instruments NOT designated as hedging instrument
0.8 
0.2 
1.2 
Foreign Exchange Contract [Member] |
Derivatives in Cash Flow Hedging Relationships
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion, net of tax)
(5.3)
(0.3)
4.2 
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
(2.2)
3.0 
(7.3)
Commodity contracts
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
(0.1)
Commodity contracts |
Derivatives in Cash Flow Hedging Relationships
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion, net of tax)
(0.8)
0.4 
1.0 
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
(0.1)
(1.6)
(2.7)
Interest Rate Swap [Member]
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Gain (loss) of derivatives instruments NOT designated as hedging instrument
 
 
9.3 
Interest Rate Swap [Member] |
Derivatives in Cash Flow Hedging Relationships
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion, net of tax)
(0.9)
 
(0.2)
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
(1.8)
 
0.1 
Interest Rate Swap [Member] |
Derivatives in Fair Value Hedging Relationships
 
 
 
Gain (loss) of derivatives instruments
 
 
 
Gain (Loss) on Fair Value Hedges Recognized in Earnings
$ 10.6 
$ (13.7)
$ (1.7)
Inventories (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Inventories — gross:
 
 
Raw materials
$ 226.2 
$ 259.0 
Work-in-process
103.7 
130.2 
Finished goods
414.8 
436.8 
Total inventories — gross
744.7 
826.0 
Excess and obsolete inventory reserve
(64.0)
(69.0)
Net inventories at FIFO cost
680.7 
757.0 
Excess of FIFO costs over LIFO value
(36.2)
(36.2)
Inventories — net
$ 644.5 
$ 720.8 
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment
 
 
Total cost
$ 1,294.1 
$ 1,276.1 
Less accumulated depreciation
(703.1)
(697.3)
Property, plant and equipment-net
591.0 
578.8 
Land
 
 
Property, Plant and Equipment
 
 
Total cost
31.2 
40.8 
Building and improvements
 
 
Property, Plant and Equipment
 
 
Total cost
344.2 
361.2 
Machinery, equipment and tooling
 
 
Property, Plant and Equipment
 
 
Total cost
509.1 
509.0 
Furniture and fixtures
 
 
Property, Plant and Equipment
 
 
Total cost
24.5 
47.8 
Computer hardware and software
 
 
Property, Plant and Equipment
 
 
Total cost
169.7 
125.8 
Rental cranes
 
 
Property, Plant and Equipment
 
 
Total cost
111.2 
89.3 
Property, plant and equipment-net
83.4 
63.1 
Construction in progress
 
 
Property, Plant and Equipment
 
 
Total cost
$ 104.2 
$ 102.2 
Goodwill and Other Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2013
Inducs, AG (Inducs)
Oct. 2, 2013
Inducs, AG (Inducs)
Dec. 31, 2014
Crane
Dec. 31, 2013
Crane
Dec. 31, 2014
Foodservice
Dec. 31, 2013
Foodservice
Dec. 31, 2013
Foodservice
Inducs, AG (Inducs)
Goodwill by reportable segment
 
 
 
 
 
 
 
 
 
Gross balance at the beginning of the period
$ 1,734.3 
$ 1,726.4 
 
 
$ 345.1 
$ 341.7 
$ 1,389.2 
$ 1,384.7 
 
Restructuring reserve adjustment
 
0.7 
 
 
 
 
0.7 
 
Foreign currency impact
(20.5)
3.6 
 
 
(19.8)
3.4 
(0.7)
0.2 
 
Gross balance at the end of the year
1,713.8 
1,734.3 
 
 
325.3 
345.1 
1,388.5 
1,389.2 
 
Accumulated asset impairments
(515.7)
(515.7)
 
 
(515.7)
(515.7)
 
Net balance
1,198.1 
1,218.6 
 
5.0 
325.3 
345.1 
872.8 
873.5 
 
Goodwill, Acquired During Period
 
 
$ 5.0 
 
 
$ 0 
 
 
$ 5.0 
Goodwill and Other Intangible Assets (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Inducs, AG (Inducs)
Oct. 2, 2013
Inducs, AG (Inducs)
Dec. 31, 2014
Trademarks and tradenames
Dec. 31, 2013
Trademarks and tradenames
Oct. 2, 2013
Trademarks and tradenames
Inducs, AG [Member]
Dec. 31, 2014
Distribution network
Dec. 31, 2013
Distribution network
Dec. 31, 2014
Customer relationships
Dec. 31, 2013
Customer relationships
Dec. 31, 2014
Customer relationships
Inducs, AG (Inducs)
Oct. 2, 2013
Customer relationships
Inducs, AG (Inducs)
Dec. 31, 2014
Patents
Dec. 31, 2013
Patents
Dec. 31, 2014
Patents
Inducs, AG (Inducs)
Oct. 2, 2013
Patents
Inducs, AG (Inducs)
Dec. 31, 2014
Engineering drawings
Dec. 31, 2013
Engineering drawings
Dec. 31, 2014
Other intangibles
Dec. 31, 2013
Other intangibles
Intangible asset balances by major asset class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments to Acquire Businesses, Net of Cash Acquired
 
 
$ 0 
$ 12.2 
$ 0 
$ 12.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible assets, Book Value
714.7 
766.2 
714.7 
766.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,198.1 
1,218.6 
1,198.1 
1,218.6 
 
 
5.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets, Book Value
 
 
 
 
 
 
 
300.0 
311.8 
0.7 
19.7 
21.0 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-lived intangible assets, Carrying Amount
 
 
 
 
 
 
 
 
 
 
 
 
425.7 
426.1 
 
1.2 
32.7 
34.9 
 
5.1 
11.0 
11.5 
170.9 
176.6 
Finite-Lived Intangible Asset, Useful Life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19 years 
 
 
 
12 years 
 
 
 
 
 
Finite-lived Intangible assets, Amortization Amount
(245.3)
(215.7)
(245.3)
(215.7)
 
 
 
 
 
 
 
 
(136.0)
(114.4)
 
 
(28.3)
(28.4)
 
 
(9.3)
(9.1)
(71.7)
(63.8)
Finite-lived intangible assets, Book Value
 
 
 
 
 
 
 
 
 
 
 
 
289.7 
311.7 
 
 
4.4 
6.5 
 
 
1.7 
2.4 
99.2 
112.8 
Intangible Assets, Gross (Excluding Goodwill)
960.0 
981.9 
960.0 
981.9 
 
 
7.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization expense
35.1 
35.3 
35.1 
35.3 
36.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future amortization expense, 2015
35 
 
35 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future amortization expense, 2016
35 
 
35 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future amortization expense, 2017
35 
 
35 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future amortization expense, 2018
35 
 
35 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future amortization expense, 2019
$ 35 
 
$ 35 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts Payable and Accrued Expenses (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Payables and Accruals [Abstract]
 
 
Trade accounts payable and interest payable
$ 470.0 
$ 510.6 
Employee related expenses
90.3 
99.9 
Restructuring Reserve, Current
20.3 
20.6 
Profit sharing and incentives
6.8 
44.7 
Accrued rebates
52.8 
45.2 
Deferred revenue - current
21.6 
25.0 
Income taxes payable
16.2 
62.5 
Miscellaneous accrued expenses
129.4 
127.1 
Total accounts payable and accrued expenses
$ 807.4 
$ 935.6 
Debt (Details) (USD $)
3 Months Ended 12 Months Ended 7 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 3 Months Ended
Sep. 30, 2011
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Senior Credit Facility
facility
May 13, 2011
Senior Credit Facility
Dec. 31, 2014
Senior Credit Facility
LIBOR
Dec. 31, 2014
Senior Credit Facility
Prime Rate
Jan. 31, 2014
New Senior Credit Facility [Member]
Dec. 31, 2014
New Senior Credit Facility [Member]
facility
Jan. 3, 2014
New Senior Credit Facility [Member]
Dec. 31, 2014
Term loan B
Dec. 31, 2014
Revolving credit facility
Dec. 31, 2013
Revolving credit facility
Dec. 31, 2014
Revolving credit facility
Senior Credit Facility
May 13, 2011
Revolving credit facility
Senior Credit Facility
Dec. 31, 2014
Revolving credit facility
New Senior Credit Facility [Member]
Jan. 3, 2014
Revolving credit facility
New Senior Credit Facility [Member]
May 31, 2011
Line of Credit [Member]
Senior Credit Facility
Dec. 31, 2014
Term loan A
Dec. 31, 2013
Term loan A
May 31, 2011
Term loan A
Senior Credit Facility
Dec. 31, 2014
Term loan A
Senior Credit Facility
May 13, 2011
Term loan A
Senior Credit Facility
Dec. 31, 2014
Term loan A
New Senior Credit Facility [Member]
Jan. 3, 2014
Term loan A
New Senior Credit Facility [Member]
Dec. 31, 2014
Term loan B
Dec. 31, 2013
Term loan B
May 31, 2011
Term loan B
Senior Credit Facility
Dec. 31, 2014
Term loan B
Senior Credit Facility
May 13, 2011
Term loan B
Senior Credit Facility
Dec. 31, 2014
Term loan B
New Senior Credit Facility [Member]
Jan. 3, 2014
Term loan B
New Senior Credit Facility [Member]
Dec. 31, 2014
Senior notes due 2018
Dec. 31, 2013
Senior notes due 2018
Feb. 3, 2010
Senior notes due 2018
Dec. 31, 2014
Senior notes due 2020
Dec. 31, 2013
Senior notes due 2020
Oct. 18, 2010
Senior notes due 2020
Dec. 31, 2014
Senior notes due 2022
Dec. 31, 2013
Senior notes due 2022
Oct. 19, 2012
Senior notes due 2022
Dec. 31, 2014
Other
Dec. 31, 2013
Other
Dec. 31, 2014
Fair Value Hedging [Member]
Senior Notes, Due 2022 [Member]
Dec. 31, 2014
Model 31000 crane
Other
Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt redemption premium
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 19,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Write off of Deferred Debt Issuance Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on debt extinguishment
 
(25,500,000)
(3,000,000)
(6,300,000)
 
 
 
 
 
2,000,000 
 
200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
 
1,523,500,000 
1,526,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
336,900,000 
162,500,000 
 
 
 
 
 
168,500,000 
 
 
 
 
 
408,400,000 
 
614,800,000 
614,800,000 
 
296,900,000 
289,100,000 
 
106,400,000 
52,000,000 
 
20,300,000 
Less current portion and short-term borrowings
 
(80,300,000)
(22,700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
 
1,443,200,000 
1,504,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
 
 
1,250,000,000 
 
 
 
 
1,050,000,000 
 
 
 
 
500,000,000 
 
500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of loan facilities included with the senior credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
5 years 
 
 
5 years 
 
 
5 years 
 
 
 
6 years 6 months 
 
 
7 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
350,000,000 
 
350,000,000 
 
 
 
 
400,000,000 
 
200,000,000 
 
 
400,000,000 
 
 
600,000,000 
 
 
300,000,000 
 
 
 
 
Weighted average interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.68% 
 
 
 
 
 
 
 
2.19% 
 
 
 
 
 
 
3.25% 
 
 
 
 
 
 
 
 
 
 
 
 
5.43% 
 
 
 
Amount of borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Highest daily borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
467,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
342,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Description of variable rate basis
one-month LIBOR 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spreads for LIBOR and Prime borrowings
 
 
 
 
 
 
2.00% 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage
 
 
 
 
 
 
 
 
 
0.38% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 125,000,000 
 
Debt Weighted Average Interest Rate, Including Swaps
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.95% 
 
 
 
 
 
 
3.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of stock of certain foreign subsidiaries guaranteed
 
 
 
 
 
 
 
 
65.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt (Details 2)
Dec. 31, 2014
New Senior Credit Facility [Member] |
Required |
Less than
 
Financial Covenants
 
Consolidated Senior Secured Leverage Ratio, Numerator
3.25 
Consolidated Senior Secured Leverage Ratio, Denominator
New Senior Credit Facility [Member] |
Required |
Greater than
 
Financial Covenants
 
Consolidated Interest Coverage Ratio, Numerator
2.50 
Consolidated Interest Coverage Ratio, Denominator
New Senior Credit Facility [Member] |
Actual
 
Financial Covenants
 
Consolidated Senior Secured Leverage Ratio, Numerator
1.79 
Consolidated Senior Secured Leverage Ratio, Denominator
Consolidated Interest Coverage Ratio, Numerator
4.77 
Consolidated Interest Coverage Ratio, Denominator
Fiscal Quarter Ending December 31, 2014 [Member] |
Required |
Less than
 
Financial Covenants
 
Consolidated Senior Secured Leverage Ratio, Numerator
3.25 
Consolidated Senior Secured Leverage Ratio, Denominator
1.00 
Fiscal Quarter Ending December 31, 2014 [Member] |
Required |
Greater than
 
Financial Covenants
 
Consolidated Interest Coverage Ratio, Numerator
2.50 
Consolidated Interest Coverage Ratio, Denominator
1.00 
Fiscal Quarter Ending March 31, 2015 [Member] |
Required |
Less than
 
Financial Covenants
 
Consolidated Senior Secured Leverage Ratio, Numerator
3.25 
Consolidated Senior Secured Leverage Ratio, Denominator
1.00 
Fiscal Quarter Ending March 31, 2015 [Member] |
Required |
Greater than
 
Financial Covenants
 
Consolidated Interest Coverage Ratio, Numerator
2.75 
Consolidated Interest Coverage Ratio, Denominator
1.00 
Fiscal Quarter Ending June 30, 2015 [Member] |
Required |
Less than
 
Financial Covenants
 
Consolidated Senior Secured Leverage Ratio, Numerator
3.25 
Consolidated Senior Secured Leverage Ratio, Denominator
1.00 
Fiscal Quarter Ending June 30, 2015 [Member] |
Required |
Greater than
 
Financial Covenants
 
Consolidated Interest Coverage Ratio, Numerator
2.75 
Consolidated Interest Coverage Ratio, Denominator
1.00 
Fiscal Quarter Ending September 30, 2015 [Member] |
Required |
Less than
 
Financial Covenants
 
Consolidated Senior Secured Leverage Ratio, Numerator
3.25 
Consolidated Senior Secured Leverage Ratio, Denominator
1.00 
Fiscal Quarter Ending September 30, 2015 [Member] |
Required |
Greater than
 
Financial Covenants
 
Consolidated Interest Coverage Ratio, Numerator
2.75 
Consolidated Interest Coverage Ratio, Denominator
1.00 
Fiscal Quarter Ending December 31, 2015 [Member] |
Required |
Less than
 
Financial Covenants
 
Consolidated Senior Secured Leverage Ratio, Numerator
3.25 
Consolidated Senior Secured Leverage Ratio, Denominator
1.00 
Fiscal Quarter Ending December 31, 2015 [Member] |
Required |
Greater than
 
Financial Covenants
 
Consolidated Interest Coverage Ratio, Numerator
2.75 
Consolidated Interest Coverage Ratio, Denominator
1.00 
Fiscal Quarter Ending March 31, 2016 and thereafter [Member] |
Required |
Less than
 
Financial Covenants
 
Consolidated Senior Secured Leverage Ratio, Numerator
3.00 
Consolidated Senior Secured Leverage Ratio, Denominator
1.00 
Fiscal Quarter Ending March 31, 2016 and thereafter [Member] |
Required |
Greater than
 
Financial Covenants
 
Consolidated Interest Coverage Ratio, Numerator
3.00 
Consolidated Interest Coverage Ratio, Denominator
1.00 
Debt (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 2 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2014
note
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2014
2022 Notes
12-month period commencing October 15, 2017
Dec. 31, 2014
2022 Notes
12-month period commencing October 15, 2018
Dec. 31, 2014
2022 Notes
12-month period commencing October 15, 2019
Dec. 31, 2014
2022 Notes
12-month period commencing October 15, 2020 and thereafter
Oct. 19, 2012
Senior notes 5.875% due 2022
Dec. 31, 2014
Senior notes 5.875% due 2022
Dec. 31, 2013
Senior notes 5.875% due 2022
Oct. 19, 2012
Senior Notes 7.125% due 2013
Oct. 19, 2012
Term loan B
Dec. 31, 2014
Term loan B
Dec. 31, 2013
Term loan B
Feb. 18, 2014
Senior Notes 9.50% due 2018
Dec. 31, 2014
Senior Notes 9.50% due 2018
Dec. 31, 2013
Senior Notes 9.50% due 2018
Feb. 3, 2010
Senior Notes 9.50% due 2018
Dec. 31, 2014
Senior Notes 8.50% due 2020
Dec. 31, 2013
Senior Notes 8.50% due 2020
Oct. 18, 2010
Senior Notes 8.50% due 2020
Dec. 31, 2014
Senior Notes 8.50% due 2020
12-month period commencing November 1, 2015
Dec. 31, 2014
Senior Notes 8.50% due 2020
12-month period commencing November 1, 2016
Dec. 31, 2014
Senior Notes 8.50% due 2020
12-month period commencing November 1, 2017
Dec. 31, 2014
Senior Notes 8.50% due 2020
12-month period commencing November 1, 2018 and thereafter
Dec. 31, 2014
Other
Dec. 31, 2013
Other
Dec. 31, 2014
Fair Value Hedging [Member]
2020 Notes
Dec. 31, 2014
Fair Value Hedging [Member]
2022 Notes
Dec. 31, 2014
Senior Credit Facility [Member]
Term loan B
May 13, 2011
Senior Credit Facility [Member]
Term loan B
Debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Weighted Average Interest Rate, Including Swaps
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.25% 
 
Loss on early extinguishment of debt
$ 25.5 
$ 3.0 
$ 6.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Write-off of deferred financing fees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Senior Notes outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Event of default, minimum percentage of Senior Notes held required to declare debt due and payable (as a percent)
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount of debt
 
 
 
 
 
 
 
300.0 
 
 
 
 
 
 
 
 
 
400.0 
 
 
600.0 
 
 
 
 
 
 
 
 
 
400.0 
Interest rate, stated percentage (as a percent)
 
 
 
 
 
 
 
5.875% 
 
 
 
 
 
 
 
 
 
9.50% 
 
 
8.50% 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Issue Price, Percentage
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Extinguishment of Debt, Amount
 
 
 
 
 
 
 
 
 
 
150.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of Long-term Debt
638.7 
266.5 
495.4 
 
 
 
 
 
 
 
 
36.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Redemption Price, Percentage
 
 
 
102.938% 
101.958% 
100.979% 
100.00% 
 
 
 
 
 
 
 
104.75% 
 
 
 
 
 
 
104.25% 
102.833% 
101.417% 
100.00% 
 
 
 
 
 
 
Maximum percentage of the principal amount of the debt instrument which the entity may redeem with proceeds from qualified equity offerings (as a percent)
35.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption price of debt instrument if redeemed with proceeds from qualified equity offerings (as a percent)
 
 
 
 
 
 
 
 
105.875% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum percentage of the principal amount of the debt instrument which must remain outstanding after the entity has redeemed a portion of the debt instrument with proceeds from qualified equity offerings (as a percent)
 
 
 
 
 
 
 
 
65.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum redemption period for the entity to redeem the debt instrument following the receipt of proceeds from qualified equity offerings (in number of days)
 
 
 
 
 
 
 
 
90 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Price Percentage on Notes that are Required to be Offered for Repurchase
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of Long-term Debt including Redemption Premium
 
 
 
 
 
 
 
 
 
 
 
 
 
 
419.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Cash Received on Hedge
 
 
14.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Fixed Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.31% 
5.186% 
 
 
Carrying amount
1,523.5 
1,526.8 
 
 
 
 
 
 
296.9 
289.1 
 
 
168.5 
 
408.4 
 
614.8 
614.8 
 
 
 
 
 
106.4 
52.0 
 
 
 
 
Weighted average interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.43% 
 
 
 
3.25% 
 
Aggregate scheduled maturities of outstanding debt obligations in subsequent years
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
80.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
50.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
52.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
58.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
194.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thereafter
1,087.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$ 1,523.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts Receivable Securitization (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Maximum
Sep. 26, 2012
Maximum
Accounts Receivable Securitization
 
 
 
 
Capacity of securitization program
 
 
$ 185 
$ 150 
Index rate
LIBOR 
 
 
 
Fixed spread
1.25% 
 
 
 
Period for which the entity will be able to comply with the financial covenants pertaining to the Receivable Purchase Agreement (in months)
12 months 
 
 
 
Average collection cycle for accounts receivable (in days)
 
 
60 days 
 
Fair value of deferred purchase price notes
50.9 
41.3 
 
 
Trade accounts receivable balance sold
$ 172.8 
$ 148.9 
 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Earnings (loss) from continuing operations before income taxes:
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
 
 
 
 
 
 
$ 32.6 
$ 90.1 
$ 94.1 
Foreign
 
 
 
 
 
 
 
 
136.8 
135.1 
52.8 
Earnings from continuing operations before taxes on earnings
38.4 
56.3 
66.1 
8.6 
60.7 
70.8 
71.4 
22.3 
169.4 
225.2 
146.9 
Current:
 
 
 
 
 
 
 
 
 
 
 
Federal and state
 
 
 
 
 
 
 
 
(12.0)
24.1 
29.2 
Foreign
 
 
 
 
 
 
 
 
26.8 
25.4 
17.3 
Total current
 
 
 
 
 
 
 
 
14.8 
49.5 
46.5 
Deferred:
 
 
 
 
 
 
 
 
 
 
 
Federal and state
 
 
 
 
 
 
 
 
4.5 
(15.2)
(5.2)
Foreign
 
 
 
 
 
 
 
 
(10.7)
1.8 
(3.3)
Total deferred
 
 
 
 
 
 
 
 
(6.2)
(13.4)
(8.5)
Provision for taxes on earnings
 
 
 
 
 
 
 
 
$ 8.6 
$ 36.1 
$ 38.0 
Effective Income Tax Rate, Discontinued Operations
 
 
 
 
 
 
 
 
6.90% 
 
 
Reconciliation of the federal statutory income tax rate to the company's effective income tax rate for continuing operations
 
 
 
 
 
 
 
 
 
 
 
Federal income tax at statutory rate
 
 
 
 
 
 
 
 
35.00% 
35.00% 
35.00% 
State income provision (benefit)
 
 
 
 
 
 
 
 
(0.40%)
(0.50%)
0.30% 
Manufacturing & research incentives
 
 
 
 
 
 
 
 
(2.70%)
(3.30%)
(3.50%)
Taxes on foreign income which differ from the U.S. statutory rate
 
 
 
 
 
 
 
 
(14.40%)
(9.30%)
(7.70%)
Adjustments for unrecognized tax benefits
 
 
 
 
 
 
 
 
(1.40%)
(5.40%)
(6.70%)
Valuation allowances
 
 
 
 
 
 
 
 
26.80% 
(1.00%)
9.20% 
Capital loss generation
 
 
 
 
 
 
 
 
(45.70%)
0.00% 
0.00% 
Change in assertion over permanently reinvested foreign earnings
 
 
 
 
 
 
 
 
3.20% 
0.00% 
0.00% 
Other items
 
 
 
 
 
 
 
 
4.70% 
0.50% 
(0.70%)
Effective tax rate
 
 
 
 
 
 
 
 
5.10% 
16.00% 
25.90% 
Income Taxes (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Valuation allowance
 
 
 
Federal income tax at statutory rate
35.00% 
35.00% 
35.00% 
Provision for taxes on earnings
$ 8.6 
$ 36.1 
$ 38.0 
Foreign
 
 
 
Valuation allowance
 
 
 
Valuation allowance on the net deferred tax asset operating loss carryforward, foreign
495.7 
 
 
State of Wisconsin
 
 
 
Valuation allowance
 
 
 
Total valuation allowance having an unfavorable impact to income tax expense
$ 1.1 
 
 
Income Taxes (Details 3) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Current deferred tax assets (liabilities):
 
 
Inventories
$ 29.5 
$ 32.3 
Accounts receivable
(5.6)
(2.1)
Product warranty reserves
19.0 
20.0 
Product liability reserves
8.3 
7.9 
Deferred revenue, current portion
7.7 
0.6 
Deferred employee benefits
13.3 
16.6 
Other reserves and allowances
5.7 
16.1 
Less valuation allowance
(12.2)
(3.6)
Net deferred tax assets, current
65.7 
87.8 
Non-current deferred tax assets (liabilities):
 
 
Property, plant and equipment
(28.2)
(32.6)
Intangible assets
(281.8)
(296.3)
Deferred employee benefits
87.7 
67.1 
Product warranty reserves
5.2 
4.2 
Tax credits
1.0 
2.3 
Net operating loss carryforwards
199.0 
192.7 
Deferred revenue
4.0 
5.9 
Other
(0.7)
(2.4)
Total non-current deferred tax liabilities
(13.8)
(59.1)
Less valuation allowance
156.0 
146.2 
Long-term deferred income tax liability
(169.8)
(205.3)
Components of Deferred Tax Assets and Liabilities [Abstract]
 
 
Current income tax asset
71.3 
89.9 
Long-term income tax assets, included in other non-current assets
16.4 
9.0 
Current deferred income tax liability, included in accounts payable and accrued expenses
(5.6)
(2.1)
Long-term deferred income tax liability
186.2 
214.3 
Net deferred income tax liability
$ (104.1)
$ (117.5)
Income Taxes (Details 4) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2014
UNITED KINGDOM
Dec. 31, 2014
State Administration of Taxation, China [Member]
Dec. 31, 2014
Tax Authority, Spain [Member]
Sep. 30, 2014
Tax Authority, Spain [Member]
Dec. 31, 2014
State
Dec. 31, 2014
State of Wisconsin
Dec. 31, 2014
Foreign
Dec. 31, 2014
UNITED STATES
Income Tax Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Tax Liability Not Recognized, Determination of Deferred Tax Liability is Not Practicable, Undistributed Earnings of Foreign Subsidiaries
652.8 
 
 
 
 
 
 
 
 
 
 
 
Operating loss carryforwards
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Tax Assets, Capital Loss Carryforwards
$ 8.6 
$ 36.1 
$ 38.0 
 
$ 25.6 
 
 
 
 
 
 
 
Capital loss generation
(45.70%)
0.00% 
0.00% 
 
15.10% 
 
 
 
 
 
 
 
Effective Income Tax Rate, Discontinued Operations
6.90% 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
68.0 
54.9 
73.2 
68.3 
 
 
 
 
 
 
37.2 
 
Undistributed Earnings of Foreign Subsidiaries
5.4 
 
 
 
 
 
 
 
 
 
 
 
Net operating loss carryforwards
 
 
 
 
 
 
 
 
520.9 
 
551.5 
139.1 
Deferred tax asset for net operating loss carryforwards generated in the state of Wisconsin
 
 
 
 
 
 
 
 
 
19.2 
 
 
Utilization of Reserve
 
 
 
 
 
9.0 
0.6 
3.6 
 
 
 
 
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount
 
 
 
 
 
 
 
 
 
1.1 
 
 
Operating Loss Carryforwards, Valuation Allowance
 
 
 
 
 
 
 
 
 
 
$ 495.7 
 
Operating Loss Carryforwards, Expiration Date
 
 
 
 
 
 
 
 
 
 
 
Jan. 01, 2019 
Income Taxes (Details 5)
12 Months Ended
Dec. 31, 2014
United States |
Minimum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2012 
United States |
Maximum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2014 
State of Wisconsin |
Minimum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2009 
State of Wisconsin |
Maximum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2014 
CHINA |
Minimum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2007 
CHINA |
Maximum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2014 
France |
Minimum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2013 
France |
Maximum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2014 
GERMANY |
Minimum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2006 
GERMANY |
Maximum
 
Income Tax Examination [Line Items]
 
Income Tax Examination, Year under Examination
2014 
Income Taxes (Details 6) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Tax Disclosure [Abstract]
 
 
 
Change to gross unrecognized tax benefits including interest and penalties
$ (9.8)
$ (20.7)
$ (10.4)
Reserve released due to favorable audit
8.3 
9.4 
11.6 
Uncertain tax liabilities interest and penalties
(5.2)
(9.3)
(1.4)
Uncertain tax liabilities interest and penalties accrued
5.6 
12.8 
 
Unrecognized tax benefits and income tax expense possibly reduced from audit resolutions
3.7 
 
 
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Balance at beginning of year
35.9 
47.3 
56.3 
Additions based on tax positions related to the current year
15.5 
2.0 
1.8 
Additions for tax positions of prior years
0.1 
3.7 
3.6 
Reductions for tax positions of prior years
(2.7)
(8.1)
(11.9)
Reductions based on settlements with taxing authorities
(7.3)
(3.6)
(1.1)
Reductions for lapse of statute
(8.2)
(5.4)
(1.4)
Balance at end of year
$ 33.3 
$ 35.9 
$ 47.3 
Earnings Per Share (Details)
3 Months Ended 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Earnings Per Share [Abstract]
 
 
 
Basic weighted average common shares outstanding
134,934,892 
132,894,179 
131,447,895 
Effect of dilutive securities - stock awards
2,416,417 
2,436,014 
1,869,155 
Diluted weighted average common shares outstanding
137,351,309 
135,330,193 
133,317,050 
Common shares issuable upon the exercise of stock options
 
 
 
Anti-dilutive shares excluded from the calculation of diluted earnings per share
 
 
 
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)
1,200,000 
2,300,000 
3,400,000 
Equity (Details) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2007
Right
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
D
Dec. 31, 2013
Dec. 31, 2012
Mar. 21, 2007
Equity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Authorized capitalization of common stock (in shares)
 
300,000,000 
 
 
 
300,000,000 
 
 
 
300,000,000 
300,000,000 
 
 
Par value of common stock (in dollars per share)
 
$ 0.01 
 
 
 
 
 
 
 
$ 0.01 
 
 
$ 0.01 
Authorized capitalization of preferred stock (in shares)
 
3,500,000 
 
 
 
 
 
 
 
3,500,000 
 
 
 
Par value of preferred stock per share (in dollars per share)
 
$ 0.01 
 
 
 
 
 
 
 
$ 0.01 
 
 
 
Number of rights per common stock share distributed as dividends
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock the registered holder of each right is entitled to purchase when exercisable (in shares)
 
 
 
 
 
 
 
 
 
 
 
Purchase price of each common stock share following the exercise of rights (in dollars per share)
 
$ 110.00 
 
 
 
 
 
 
 
$ 110.00 
 
 
 
Rights exercisable after public announcement of an acquisition or right to acquire 20% or more of outstanding common stock shares (in number of days)
 
 
 
 
 
 
 
 
 
10 
 
 
 
Beneficial ownership by a person or group of affiliated persons before rights become exercisable (as a percent)
 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
Rights exercisable after tender offer or exchange offer to acquire 20% or more of entity's outstanding common stock shares (in number of days)
 
 
 
 
 
 
 
 
 
10 
 
 
 
Dividends per common share (in dollars per share)
 
$ 0.08 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 
$ 0.08 
$ 0.08 
 
Number of shares authorized to be repurchased (in shares)
 
10,000,000 
 
 
 
 
 
 
 
10,000,000 
 
 
 
Aggregate number of shares repurchased (in shares)
 
 
 
 
 
 
 
 
 
7,600,000 
 
 
 
Aggregate cost of shares repurchased
 
 
 
 
 
 
 
 
 
$ 49.8 
 
 
 
Equity Equity (Details 2) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Dividends, Per Share, Cash Paid
$ 0.08 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 
$ 0.08 
$ 0.08 
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax
$ (29.2)
 
 
 
$ 54.8 
 
 
 
$ (29.2)
$ 54.8 
 
Accumulated other comprehensive income (loss), net of tax
(130.5)
 
 
 
(6.9)
 
 
 
(130.5)
(6.9)
(29.4)
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax
(95.0)
 
 
 
(62.7)
 
 
 
(95.0)
(62.7)
 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
 
 
 
 
 
 
 
 
(129.3)
19.3 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
 
 
 
 
 
 
 
 
5.7 
3.2 
 
Other Comprehensive Income (Loss), Net of Tax
 
 
 
 
 
 
 
 
(123.6)
22.5 
(4.6)
Accumulated Other Comprehensive Income (Loss) Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges Effect, Tax
(3.2)
 
 
 
0.6 
 
 
 
(3.2)
0.6 
 
Accumulated Other Comprehensive Income (Loss) Defined Benefit Pension and Other Postretirement Plans, Tax
40.1 
 
 
 
26.8 
 
 
 
40.1 
26.8 
 
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive income (loss), net of tax
(6.3)
 
 
 
1.0 
 
 
 
(6.3)
1.0 
0.6 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
 
 
 
 
 
 
 
 
(9.9)
1.3 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
 
 
 
 
 
 
 
 
2.6 
(0.9)
 
Other Comprehensive Income (Loss), Net of Tax
 
 
 
 
 
 
 
 
(7.3)
0.4 
 
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive income (loss), net of tax
(95.0)
 
 
 
(62.7)
 
 
 
(95.0)
(62.7)
(80.3)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
 
 
 
 
 
 
 
 
(35.4)
13.5 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
 
 
 
 
 
 
 
 
3.1 
4.1 
 
Other Comprehensive Income (Loss), Net of Tax
 
 
 
 
 
 
 
 
(32.3)
17.6 
 
Accumulated Translation Adjustment [Member]
 
 
 
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive income (loss), net of tax
(29.2)
 
 
 
54.8 
 
 
 
(29.2)
54.8 
50.3 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
 
 
 
 
 
 
 
 
(84.0)
4.5 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
 
 
 
 
 
 
 
 
$ (84.0)
$ 4.5 
 
Equity Equity (Details 3) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
$ (2,900.4)
$ (3,026.3)
$ (2,970.3)
Earnings from continuing operations before taxes on earnings
38.4 
56.3 
66.1 
8.6 
60.7 
70.8 
71.4 
22.3 
169.4 
225.2 
146.9 
Provision for taxes on earnings
 
 
 
 
 
 
 
 
8.6 
36.1 
38.0 
Net (loss) earnings attributable to Manitowoc
33.6 
73.1 
46.6 
(8.8)
20.9 
52.9 
57.6 
10.4 
144.5 
141.8 
101.7 
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net (loss) earnings attributable to Manitowoc
 
 
 
 
 
 
 
 
(5.7)
(3.2)
 
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before taxes on earnings
 
 
 
 
 
 
 
 
(4.1)
1.4 
 
Provision for taxes on earnings
 
 
 
 
 
 
 
 
(1.5)
0.5 
 
Net (loss) earnings attributable to Manitowoc
 
 
 
 
 
 
 
 
(2.6)
0.9 
 
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax
 
 
 
 
 
 
 
 
0.2 1
 
 
Accumulated Defined Benefit Plans Adjustment [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before taxes on earnings
 
 
 
 
 
 
 
 
(4.1)
(5.5)
 
Provision for taxes on earnings
 
 
 
 
 
 
 
 
(1.0)
(1.4)
 
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax
 
 
 
 
 
 
 
 
(4.3)1
(5.5)
 
Net (loss) earnings attributable to Manitowoc
 
 
 
 
 
 
 
 
(3.1)
(4.1)
 
Foreign currency exchange contracts |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
(2.2)
3.0 
 
Commodity contracts |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
(0.1)
(1.6)
 
Interest Rate Swap [Member] |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] |
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
$ (1.8)
 
 
Stock-Based Compensation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2010
Stock-Based Compensation
 
 
 
 
Stock-based compensation expense (in dollars)
$ 12.6 
$ 14.9 
$ 16.4 
 
Number of share options granted during the period (in shares)
300,000 
400,000 
 
 
Exercise Price, low end of range
$ 4.41 
 
 
 
Exercise Price, high end of range
$ 47.84 
 
 
 
2013 Omnibus Plan
 
 
 
 
Stock-Based Compensation
 
 
 
 
Number of shares of common stock authorized under the plan
8,000,000 
 
 
 
Stock Options
 
 
 
 
Stock-Based Compensation
 
 
 
 
Stock-based compensation expense (in dollars)
5.7 
6.3 
6.7 
 
Number of share options granted during the period (in shares)
300,000 
400,000 
 
700,000 
Stock-based compensation expense, net of tax (in dollars)
3.6 
4.0 
4.2 
 
Unrecognized compensation expense (in dollars)
5.7 
 
 
 
Recognition period for unrecognized compensation expense (in years)
2 years 5 months 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value
$ 14.84 
$ 9.00 
 
$ 7.97 
Total intrinsic value of stock options exercised
28.5 
6.9 
4.9 
 
Stock Options |
Directors
 
 
 
 
Stock-Based Compensation
 
 
 
 
Vesting rights, annual increments beginning on the grant date
0.25 
 
 
 
Anniversary period from grant date, for grants made prior to 2011 (in years)
P1Y 
 
 
 
Expiration period
10 years 
 
 
 
Vesting period (in years)
4 years 
 
 
 
Stock Options |
Officers and Employees
 
 
 
 
Stock-Based Compensation
 
 
 
 
Vesting rights, annual increments beginning on the grant date
25% increments beginning on the first anniversary of the grant date 
 
 
 
Vesting Rights Percentage
25.00% 
 
 
 
Vesting rights percentage for grants made prior to 2011 (as a percent)
25.00% 
 
 
 
Anniversary period from grant date, for grants made prior to 2011 (in years)
P2Y 
 
 
 
Vesting period for grants made prior to 2011 (in years)
4 years 
 
 
 
Expiration period for grants made prior to 2011 (in years)
10 years 
 
 
 
Stock Options |
Stock Plan 2003 |
Officers and Employees
 
 
 
 
Stock-Based Compensation
 
 
 
 
Vesting rights, annual increments beginning on the grant date
25% increments beginning on the second anniversary of the grant date 
 
 
 
Vesting Rights Percentage
25.00% 
 
 
 
Anniversary period from grant date (in years)
P2Y 
 
 
 
Expiration period
10 years 
 
 
 
Vesting period (in years)
4 years 
 
 
 
Stock Options |
Director Stock Plan 2004 |
Directors
 
 
 
 
Stock-Based Compensation
 
 
 
 
Expiration period
10 years 
 
 
 
Restricted Stock [Member]
 
 
 
 
Stock-Based Compensation
 
 
 
 
Expiration period
3 years 
 
 
 
Stock-based compensation expense (in dollars)
1.0 
2.8 
4.5 
 
Stock-based compensation expense, net of tax (in dollars)
0.6 
1.8 
2.8 
 
Unrecognized compensation expense (in dollars)
0.3 
 
 
 
Recognition period for unrecognized compensation expense (in years)
0 years 9 months 
 
 
 
Granted, shares
100,000.0 
200,000.0 
 
Restricted Stock [Member] |
Officers and Employees
 
 
 
 
Stock-Based Compensation
 
 
 
 
Vesting rights percentage for grants made prior to 2011 (as a percent)
25.00% 
 
 
 
Restricted Stock [Member] |
Stock Plan 2003 |
Officers and Employees
 
 
 
 
Stock-Based Compensation
 
 
 
 
Vesting rights, annual increments beginning on the grant date
100% on the third anniversary of the grant date 
 
 
 
Vesting Rights Percentage
100.00% 
 
 
 
Expiration period
3 years 
 
 
 
Restricted Stock [Member] |
Director Stock Plan 2004 |
Directors
 
 
 
 
Stock-Based Compensation
 
 
 
 
Expiration period
3 years 
 
 
 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
Stock-Based Compensation
 
 
 
 
Stock-based compensation expense (in dollars)
5.9 
5.8 
5.2 
 
Stock-based compensation expense, net of tax (in dollars)
3.8 
3.6 
3.3 
 
Unrecognized compensation expense (in dollars)
8.5 
 
 
 
Recognition period for unrecognized compensation expense (in years)
1 year 8 months 
 
 
 
Granted, shares
400,000.0 
500,000.0 
300,000.0 
 
Performance shares
 
 
 
 
Stock-Based Compensation
 
 
 
 
Stock-based compensation expense (in dollars)
$ 5.9 
$ 5.8 
$ 5.2 
 
Granted, shares
400,000.0 
 
 
 
Performance shares |
Performance Shares 2014 [Member] |
Minimum
 
 
 
 
Stock-Based Compensation
 
 
 
 
Granted, shares
0.0 
 
 
 
Performance shares |
Performance Shares 2014 [Member] |
Maximum
 
 
 
 
Stock-Based Compensation
 
 
 
 
Granted, shares
500,000.0 
 
 
 
Performance shares |
Performance Shares 2013 [Member]
 
 
 
 
Stock-Based Compensation
 
 
 
 
Percentage of shares paid based on total shareholder return relative to peer group of companies
50.00% 
 
 
 
Percentage of shares paid based on improvement in total leverage ratio
50.00% 
 
 
 
Performance shares |
Performance Shares 2013 [Member] |
Maximum
 
 
 
 
Stock-Based Compensation
 
 
 
 
Granted, shares
800,000.0 
 
 
 
Performance shares |
Performance Shares 2012 [Member]
 
 
 
 
Stock-Based Compensation
 
 
 
 
Period for meeting performance goals (in years)
3 years 
 
 
 
Percentage of shares paid based on total shareholder return relative to peer group of companies
50.00% 
 
 
 
Percentage of shares paid based on improvement in total leverage ratio
50.00% 
 
 
 
ShareBasedCompensationArrangementByShareBasedPaymentTotalAwardSharesThatWillBeIssued
200,000 
 
 
 
Performance shares |
Performance Shares 2012 [Member] |
Minimum
 
 
 
 
Stock-Based Compensation
 
 
 
 
Granted, shares
0.0 
 
 
 
Performance shares |
Performance Shares 2012 [Member] |
Maximum
 
 
 
 
Stock-Based Compensation
 
 
 
 
Granted, shares
700,000.0 
 
 
 
Range of Exercise Price $36.04 - $47.84
 
 
 
 
Stock-Based Compensation
 
 
 
 
Exercise Price, low end of range
$ 36.04 
 
 
 
Exercise Price, high end of range
$ 47.84 
 
 
 
Range of Exercise Price $4.41 - $7.49
 
 
 
 
Stock-Based Compensation
 
 
 
 
Exercise Price, low end of range
$ 4.41 
 
 
 
Exercise Price, high end of range
$ 9.59 
 
 
 
Stock-Based Compensation (Details 2) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2010
Shares
 
 
 
Number of share options granted during the period (in shares)
300,000 
400,000 
 
Stock Options
 
 
 
Shares
 
 
 
Options outstanding at the beginning of the period (in shares)
7,000,000 
7,400,000 
 
Number of share options granted during the period (in shares)
300,000 
400,000 
700,000 
Exercised (in shares)
(1,700,000)
(600,000)
 
Cancelled (in shares)
(200,000)
 
Options outstanding at the end of the period (in shares)
5,600,000 
7,000,000 
 
Options exercisable (in shares)
4,200,000 
 
 
Weighted Average Exercise Price
 
 
 
Options outstanding at the beginning of the period (in dollars per share)
$ 16.00 
$ 15.27 
 
Granted (in dollars per share)
$ 29.08 
$ 18.14 
 
Exercised (in dollars per share)
$ 10.92 
$ 8.35 
 
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price
$ 27.07 
$ 16.66 
 
Options outstanding at the end of the period (in dollars per share)
$ 18.23 
$ 16.00 
 
Options exercisable (in dollars per share)
$ 17.86 
 
 
Aggregate Intrinsic Value
 
 
 
Options outstanding (in dollars)
$ 36.3 
 
 
Options exercisable (in dollars)
$ 29.8 
 
 
Stock-Based Compensation (Details 3) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 4.41 
Exercise Price, high end of range
$ 47.84 
Outstanding Options (in shares)
5.6 
Weighted Average Exercise Price
$ 18.23 
Weighted Average Exercise Price
$ 17.86 
Range of Exercise Price $4.41 - $7.49
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 4.41 
Exercise Price, high end of range
$ 9.59 
Outstanding Options (in shares)
0.7 
Weighted Average Remaining Contractual Life (in years)
4 years 0 months 
Weighted Average Exercise Price
$ 4.41 
Exercisable Options (in shares)
0.7 
Weighted Average Exercise Price
$ 4.41 
Range of Exercise Price $7.50 - $9.59
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 9.60 
Exercise Price, high end of range
$ 10.21 
Outstanding Options (in shares)
0.2 
Weighted Average Remaining Contractual Life (in years)
0 years 4 months 
Weighted Average Exercise Price
$ 10.13 
Exercisable Options (in shares)
0.2 
Weighted Average Exercise Price
$ 10.13 
Range of Exercise Price $9.60 - $10.20
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 10.22 
Exercise Price, high end of range
$ 18.13 
Outstanding Options (in shares)
1.7 
Weighted Average Remaining Contractual Life (in years)
5 years 5 months 
Weighted Average Exercise Price
$ 12.90 
Exercisable Options (in shares)
1.2 
Weighted Average Exercise Price
$ 12.44 
Range of Exercise Price $10.21 - $16.28
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 18.14 
Exercise Price, high end of range
$ 26.09 
Outstanding Options (in shares)
1.2 
Weighted Average Remaining Contractual Life (in years)
6 years 0 months 
Weighted Average Exercise Price
$ 19.17 
Exercisable Options (in shares)
0.8 
Weighted Average Exercise Price
$ 19.38 
Range of Exercise Price $16.29 - $26.09
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 26.10 
Exercise Price, high end of range
$ 29.06 
Outstanding Options (in shares)
0.5 
Weighted Average Remaining Contractual Life (in years)
1 year 3 months 
Weighted Average Exercise Price
$ 26.11 
Exercisable Options (in shares)
0.5 
Weighted Average Exercise Price
$ 26.11 
Range of Exercise Price $26.10 - $28.14
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 29.07 
Exercise Price, high end of range
$ 30.46 
Outstanding Options (in shares)
0.8 
Weighted Average Remaining Contractual Life (in years)
5 years 2 months 
Weighted Average Exercise Price
$ 29.32 
Exercisable Options (in shares)
0.4 
Weighted Average Exercise Price
$ 29.52 
Range of Exercise Price $28.15 - $36.03
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 30.47 
Exercise Price, high end of range
$ 36.03 
Outstanding Options (in shares)
0.1 
Weighted Average Remaining Contractual Life (in years)
9 years 2 months 
Weighted Average Exercise Price
$ 30.47 
Exercisable Options (in shares)
Weighted Average Exercise Price
$ 0.00 
Range of Exercise Price $36.04 - $47.84
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 36.04 
Exercise Price, high end of range
$ 47.84 
Outstanding Options (in shares)
0.4 
Weighted Average Remaining Contractual Life (in years)
2 years 11 months 
Weighted Average Exercise Price
$ 38.88 
Exercisable Options (in shares)
0.4 
Weighted Average Exercise Price
$ 38.88 
Stock Options
 
Options outstanding and exercisable by range of exercise prices
 
Weighted Average Remaining Contractual Life (in years)
4 years 7 months 
Exercisable Options (in shares)
4.2 
Stock-Based Compensation (Details 4) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock-Based Compensation
 
 
 
Period of U.S. Treasury rates as a basis for assumed risk-free rates (in years)
10 
 
 
Stock Options
 
 
 
Assumptions used to estimate the fair value of each option grant
 
 
 
Expected Life (years)
6 years 
6 years 
6 years 
Risk-free Interest rate
1.90% 
1.10% 
1.10% 
Expected volatility
55.00% 
56.00% 
55.00% 
Expected dividend yield
0.40% 
0.60% 
0.60% 
Performance shares
 
 
 
Stock-Based Compensation
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number
800,000 
700,000 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value
$ 27.09 
$ 18.41 
 
Granted, shares
400,000 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value
$ 34.57 
 
 
Weighted average fair value of performance shares granted per share (in dollars per share)
$ 21.92 
 
 
Vested, shares
(300,000)
 
 
Weighted average fair value of performance shares vested per share (in dollars per share)
$ 17.79 
 
 
Cancelled, shares
 
 
Restricted Stock [Member]
 
 
 
Stock-Based Compensation
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number
200,000 
500,000 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value
$ 16.58 
$ 18.25 
 
Granted, shares
100,000 
200,000 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value
$ 0.00 
 
 
Weighted average fair value of performance shares granted per share (in dollars per share)
$ 17.21 
 
 
Vested, shares
(300,000)
 
 
Weighted average fair value of performance shares vested per share (in dollars per share)
$ 19.58 
 
 
Cancelled, shares
 
 
Restricted Stock Units (RSUs) [Member]
 
 
 
Stock-Based Compensation
 
 
 
Granted, shares
400,000 
500,000 
300,000 
Performance Shares 2012 [Member] |
Minimum |
Performance shares
 
 
 
Stock-Based Compensation
 
 
 
Granted, shares
0.0 
 
 
Performance Shares 2012 [Member] |
Maximum |
Performance shares
 
 
 
Stock-Based Compensation
 
 
 
Granted, shares
700,000 
 
 
Performance Shares 2014 [Member] |
Minimum |
Performance shares
 
 
 
Stock-Based Compensation
 
 
 
Granted, shares
0.0 
 
 
Performance Shares 2014 [Member] |
Maximum |
Performance shares
 
 
 
Stock-Based Compensation
 
 
 
Granted, shares
500,000 
 
 
Contingencies and Significant Estimates (Details) (Enodis locations, USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Enodis locations
 
Site contingency
 
Accruals for environmental matters related to Enodis locations
$ 0.7 
Contingencies and Significant Estimates (Details 2) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Y
Dec. 31, 2013
Dec. 31, 2012
Product liability reserves
 
 
 
Period over which product liability self-insurance retention levels have fluctuated (in years)
10 
 
 
Product Liability Reserve
$ 24.6 
$ 25.0 
 
Product liability reserves for actual cases
4.0 
5.7 
 
Product liability reserves for claims incurred but not reported
20.6 
19.3 
 
Warranty claims reserves
92.2 
99.0 
101.2 
Minimum
 
 
 
Product liability reserves
 
 
 
Product liability self-insurance retention levels per occurrence
0.1 
 
 
Maximum
 
 
 
Product liability reserves
 
 
 
Product liability self-insurance retention levels per occurrence
3.0 
 
 
Product liability self-insurance maximum retention level for new occurrence
$ 2.0 
 
 
Guarantees (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Guarantees
 
 
Deferred revenue included in other current and non-current liabilities
$ 59.5 
$ 62.6 
Amount of residual value guarantees and buyback commitments given by the company
58.9 
66.8 
Standard product warranty, low end of range (in months)
12 months 
 
Standard product warranty, high end of range (in months)
60 months 
 
Warranty activity
 
 
Balance at beginning of period
99.0 
101.2 
Accruals for warranties issued during the period
59.8 
58.6 
Standard Product Warranty Accrual, Additions from Business Acquisition
0.2 
Settlements made (in cash or in kind) during the period
(63.4)
(61.7)
Currency translation
(3.2)
0.7 
Balance at end of period
92.2 
99.0 
Notes receivable sales and guarantees
 
 
Guarantees
 
 
Sale of long term notes receivable to third party financing companies
17.0 
31.2 
Maximum percent guaranteed by the company for collection of notes to financing companies (as a percent)
100.00% 
 
Payments related to notes by customers to financing companies
17.3 
24.6 
Outstanding balance of notes receivables guaranteed by the company
$ 34.0 
$ 34.3 
Restructuring (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Restructuring
 
 
 
Restructuring charges
$ 9.0 
$ 4.8 
$ 9.5 
Excess reserves adjusted to goodwill
 
0.7 
 
Rollforward of all restructuring activities
 
 
 
Restructuring expense
9.0 
4.8 
9.5 
Crane
 
 
 
Restructuring
 
 
 
Restructuring charges
6.6 
 
 
Excess reserves adjusted to goodwill
 
 
Rollforward of all restructuring activities
 
 
 
Restructuring Reserve Balance, at the beginning of the period
4.3 
 
 
Restructuring expense
6.6 
 
 
Use of Reserve
(6.2)
 
 
Restructuring Reserve Balance, at the end of the period
4.7 
4.3 
 
Foodservice
 
 
 
Restructuring
 
 
 
Restructuring charges
2.4 
 
 
Excess reserves adjusted to goodwill
 
0.7 
 
Rollforward of all restructuring activities
 
 
 
Restructuring Reserve Balance, at the beginning of the period
16.3 
 
 
Restructuring expense
2.4 
 
 
Use of Reserve
(3.1)
 
 
Restructuring Reserve Balance, at the end of the period
$ 15.6 
$ 16.3 
 
Employee Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Manitowoc Deferred Compensation Plan
 
 
 
Number of defined contribution retirement plans for the employees
 
 
Retirement Savings Plan
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Total costs incurred under the Manitowoc Retirement Savings Plan
$ 6.1 
$ 6.2 
$ 4.1 
Deferred Compensation Plan
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Number of deferred compensation plans
 
 
Number of investment programs
 
 
Program A |
Deferred Compensation Plan
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Program asset
1.4 
2.2 
 
Program obligation
1.4 
2.2 
 
Program B |
Deferred Compensation Plan
 
 
 
Manitowoc Deferred Compensation Plan
 
 
 
Program asset
16.5 
15.4 
 
Program obligation
$ 16.5 
$ 15.4 
 
Employee Benefit Plans (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Weighted average assumptions:
 
 
 
Amortization of gains and losses in excess of specified percentage (as a percent)
10.00% 
 
 
U.S. Pension Plans
 
 
 
Employee benefit plans
 
 
 
Service cost - benefits earned during the year
$ 0 
$ 0 
$ 0 
Interest cost of projected benefit obligation
10.3 
9.6 
10.2 
Expected return on assets
(9.5)
(10.2)
(10.2)
Amortization of prior service cost
Amortization of actuarial net (gain) loss
2.9 
3.5 
2.9 
Curtailment gain recognized
Settlement gain recognized
Net periodic benefit cost
3.7 
2.9 
2.9 
Weighted average assumptions:
 
 
 
Discount rate
4.90% 
4.10% 
4.60% 
Expected return on plan assets
6.00% 
5.80% 
6.00% 
Non-U.S. Pension Plans
 
 
 
Employee benefit plans
 
 
 
Service cost - benefits earned during the year
2.4 
2.4 
2.2 
Interest cost of projected benefit obligation
11.3 
9.8 
10.2 
Expected return on assets
(9.4)
(7.4)
(8.2)
Amortization of prior service cost
0.1 
0.1 
0.1 
Amortization of actuarial net (gain) loss
1.5 
1.9 
0.8 
Curtailment gain recognized
Settlement gain recognized
(1.6)
Net periodic benefit cost
5.9 
6.8 
3.5 
Weighted average assumptions:
 
 
 
Discount rate
4.30% 
4.00% 
4.70% 
Expected return on plan assets
4.50% 
3.90% 
4.50% 
Rate of compensation increase
4.30% 
3.80% 
3.70% 
Postretirement Health and Other Plans
 
 
 
Employee benefit plans
 
 
 
Service cost - benefits earned during the year
0.4 
0.6 
0.8 
Interest cost of projected benefit obligation
2.1 
2.0 
2.8 
Expected return on assets
Amortization of prior service cost
(0.3)
(0.1)
Amortization of actuarial net (gain) loss
(0.1)
0.4 
Curtailment gain recognized
(0.8)
Settlement gain recognized
Net periodic benefit cost
$ 2.1 
$ 1.7 
$ 4.0 
Weighted average assumptions:
 
 
 
Discount rate
4.50% 
3.50% 
4.60% 
Rate of compensation increase
1.50% 
3.00% 
3.00% 
Employee Benefit Plans (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Change in Plan Assets
 
 
 
Fair value of plan assets, end of year
$ 374.0 
$ 373.7 
 
U.S. Pension Plans
 
 
 
Change in Benefit Obligation
 
 
 
Benefit obligation, beginning of year
213.7 
241.4 
 
Service cost
Interest cost
10.3 
9.6 
10.2 
Participant contributions
 
Medicare subsidies received
 
Plan curtailments
 
Plan settlements
1.7 
 
Plan amendments
 
Defined Benefit Plan, Assets Transferred to (from) Plan
 
Actuarial loss (gain)
30.2 
(19.4)
 
Currency translation adjustment
 
Benefits paid
(20.0)
(17.9)
 
Benefit obligation, end of year
235.9 
213.7 
241.4 
Change in Plan Assets
 
 
 
Fair value of plan assets, beginning of year
162.6 
180.6 
 
Actual return on plan assets
16.1 
(1.3)
 
Employer contributions
1.3 
1.2 
 
Participant contributions
 
Medicare subsidies received
 
Plan settlements
 
Currency translation adjustment
 
Net transfer out
 
Benefits paid
(20.0)
(17.9)
 
Fair value of plan assets, end of year
160.0 
162.6 
180.6 
Funded status
(75.9)
(51.1)
 
Amounts recognized in the Consolidated Balance sheet at December 31
 
 
 
Pension asset
 
Pension obligation
(75.9)
(51.1)
 
Postretirement health and other benefit obligations
 
Net amount recognized
(75.9)
(51.1)
 
Weighted-Average Assumptions
 
 
 
Discount rate
4.10% 
4.90% 
 
Expected return on plan assets
6.00% 
5.80% 
6.00% 
Non-U.S. Pension Plans
 
 
 
Change in Benefit Obligation
 
 
 
Benefit obligation, beginning of year
263.2 
255.0 
 
Service cost
2.4 
2.4 
2.2 
Interest cost
11.3 
9.8 
10.2 
Participant contributions
0.1 
0.1 
 
Medicare subsidies received
 
Plan curtailments
 
Plan settlements
(0.1)
 
Plan amendments
 
Defined Benefit Plan, Assets Transferred to (from) Plan
(0.3)
(0.3)
 
Actuarial loss (gain)
32.9 
3.9 
 
Currency translation adjustment
(17.4)
4.6 
 
Benefits paid
(12.7)
(12.2)
 
Benefit obligation, end of year
279.5 
263.2 
255.0 
Change in Plan Assets
 
 
 
Fair value of plan assets, beginning of year
211.1 
199.5 
 
Actual return on plan assets
22.4 
16.5 
 
Employer contributions
4.8 
4.2 
 
Participant contributions
0.1 
0.1 
 
Medicare subsidies received
 
Plan settlements
(0.1)
 
Currency translation adjustment
(11.7)
3.5 
 
Net transfer out
(0.4)
 
Benefits paid
(12.7)
(12.2)
 
Fair value of plan assets, end of year
214.0 
211.1 
199.5 
Funded status
(65.5)
(52.1)
 
Amounts recognized in the Consolidated Balance sheet at December 31
 
 
 
Pension asset
0.3 
 
Pension obligation
(65.5)
(52.4)
 
Postretirement health and other benefit obligations
 
Net amount recognized
(65.5)
(52.1)
 
Weighted-Average Assumptions
 
 
 
Discount rate
3.30% 
4.30% 
 
Expected return on plan assets
4.50% 
3.90% 
4.50% 
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase
3.90% 
4.30% 
 
Postretirement Health and Other Plans
 
 
 
Change in Benefit Obligation
 
 
 
Benefit obligation, beginning of year
48.5 
57.5 
 
Service cost
0.4 
0.6 
0.8 
Interest cost
2.1 
2.0 
2.8 
Participant contributions
2.3 
2.6 
 
Medicare subsidies received
0.4 
0.4 
 
Plan curtailments
(0.7)
 
Plan settlements
 
Plan amendments
(0.4)
 
Defined Benefit Plan, Assets Transferred to (from) Plan
 
Actuarial loss (gain)
10.3 
(7.2)
 
Currency translation adjustment
(0.1)
(0.2)
 
Benefits paid
(6.9)
(6.1)
 
Benefit obligation, end of year
57.0 
48.5 
57.5 
Change in Plan Assets
 
 
 
Fair value of plan assets, beginning of year
 
Actual return on plan assets
 
Employer contributions
4.2 
3.1 
 
Participant contributions
2.3 
2.6 
 
Medicare subsidies received
0.4 
0.4 
 
Plan settlements
 
Currency translation adjustment
 
Net transfer out
 
Benefits paid
(6.9)
(6.1)
 
Fair value of plan assets, end of year
Funded status
(57.0)
(48.5)
 
Amounts recognized in the Consolidated Balance sheet at December 31
 
 
 
Pension asset
 
Pension obligation
 
Postretirement health and other benefit obligations
(57.0)
(48.5)
 
Net amount recognized
$ (57.0)
$ (48.5)
 
Weighted-Average Assumptions
 
 
 
Discount rate
3.70% 
4.50% 
 
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase
1.50% 
1.50% 
 
Employee Benefit Plans (Details 4) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
100.00% 
100.00% 
Pension Plans
 
 
Amounts recognized in accumulated other comprehensive income
 
 
Net actuarial gain (loss)
$ (128.5)
$ (93.4)
Prior service credit
(0.8)
(1.0)
Total amount recognized
(129.3)
(94.4)
Amounts in accumulated other comprehensive income that are expected to be recognized as components of net periodic benefit cost during the next fiscal year
(7.5)
 
Estimated increase (decrease) in 2014 benefit obligation
 
 
0.50% increase in discount rate
(1.5)
 
0.50% decrease in discount rate
2.2 
 
0.50% increase in long-term return on assets
(1.8)
 
0.50% decrease in long-term return on assets
1.8 
 
Estimated increase (decrease) in 2013 benefit obligation
 
 
0.50% increase in discount rate
(31.7)
 
0.50% decrease in discount rate
37.5 
 
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
100.00% 
100.00% 
Postretirement Health and Other Plans
 
 
Amounts recognized in accumulated other comprehensive income
 
 
Net actuarial gain (loss)
(5.8)
4.6 
Prior service credit
0.3 
Total amount recognized
(5.8)
4.9 
Amounts in accumulated other comprehensive income that are expected to be recognized as components of net periodic benefit cost during the next fiscal year
0.1 
 
Annual rate of increase in the per capita cost of covered health care benefits assumed for measurement purposes (as a percent)
6.40% 
 
Ultimate health care cost trend rate (as a percent)
4.50% 
 
Estimated increase (decrease) in 2014 benefit obligation
 
 
0.50% increase in discount rate
 
0.50% decrease in discount rate
0.2 
 
1% increase in medical trend rates
0.9 
 
1% decrease in medical trend rates
(0.4)
 
Estimated increase (decrease) in 2013 benefit obligation
 
 
0.50% increase in discount rate
(2.5)
 
0.50% decrease in discount rate
2.7 
 
1% increase in medical trend rates
5.0 
 
1% decrease in medical trend rates
$ (4.4)
 
Equity |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
25.00% 
20.20% 
Equity |
U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
24.50% 
26.10% 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Target Allocations (as a percent)
25.00% 
 
Equity |
Minimum |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Minimum (as a percent)
0.00% 
 
Equity |
Maximum |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Maximum (as a percent)
25.00% 
 
Fixed income |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
19.60% 
23.80% 
Fixed income |
U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
74.90% 
73.40% 
Other |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
55.40% 
56.00% 
Other |
U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
0.60% 
0.50% 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Target Allocations (as a percent)
0.00% 
 
Other |
Minimum |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Minimum (as a percent)
0.00% 
 
Other |
Maximum |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Maximum (as a percent)
100.00% 
 
Debt Securities |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
19.60% 
 
Debt Securities |
U.S. Pension Plans
 
 
Defined Benefit Plan, Information about Plan Assets [Abstract]
 
 
Weighted-average asset allocation (as a percent)
74.90% 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Target Allocations (as a percent)
75.00% 
 
Debt Securities |
Minimum |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Minimum (as a percent)
0.00% 
 
Debt Securities |
Maximum |
Non-U.S. Pension Plans
 
 
Defined Benefit Plan, Assets, Target Allocations [Abstract]
 
 
Maximum (as a percent)
100.00% 
 
Employee Benefit Plans (Details 5) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
$ 374.0 
$ 373.7 
 
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
1.7 
1.7 
 
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
117.7 
118.3 
 
Common/collective trust funds - Government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
3.0 
 
Common/collective trust funds - Corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
47.5 
49.6 
 
Common/collective trust funds - Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
109.9 
111.6 
 
Common/collective trust funds - Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
92.9 
84.3 
 
Common/collective trust funds - Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
4.3 
5.2 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
1.7 
1.7 
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
1.7 
1.7 
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds - Government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds - Corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds - Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds - Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Common/collective trust funds - Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Significant Other Observable Inputs (Level 2)
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
254.6 
253.7 
 
Significant Other Observable Inputs (Level 2) |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Significant Other Observable Inputs (Level 2) |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds - Government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
3.0 
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds - Corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
47.5 
49.6 
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds - Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
109.9 
111.6 
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds - Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
92.9 
84.3 
 
Significant Other Observable Inputs (Level 2) |
Common/collective trust funds - Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
4.3 
5.2 
 
Level 3
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
117.7 
118.3 
 
Level 3 |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 3 |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
117.7 
118.3 
111.1 
Level 3 |
Common/collective trust funds - Government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 3 |
Common/collective trust funds - Corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 3 |
Common/collective trust funds - Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 3 |
Common/collective trust funds - Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 3 |
Common/collective trust funds - Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
$ 0 
$ 0 
 
Employee Benefit Plans (Details 6) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
$ 374.0 
$ 373.7 
Unobservable Inputs (Level 3)
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
117.7 
118.3 
Insurance group annuity contracts
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
117.7 
118.3 
Insurance group annuity contracts |
Unobservable Inputs (Level 3)
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, beginning of year
118.3 
111.1 
Actual return on plan assets
12.7 
12.1 
Benefit payments
(7.1)
(6.8)
Foreign currency impact
(6.2)
1.9 
Fair value of plan assets, end of year
$ 117.7 
$ 118.3 
Employee Benefit Plans (Details 7) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets
 
 
 
Expenses related to the target benefit plan
$ 2.4 
$ 2.9 
$ 3.3 
Amounts accrued related to the target benefit plan
25.7 
24.8 
 
Multiemployer Plans, Withdrawal Obligation
14.2 
 
 
Multiemployer plan, number of withdrawal obligation quarterly payments
48 
 
 
Multiemployer plan, withdrawal obligation quarterly installment payment amount
0.5 
 
 
Contributions under collective bargaining agreement
0.3 
0.9 
U.S. Pension Plans
 
 
 
Expected contributions for the pension plans
 
 
 
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year
1.4 
 
 
Projected benefit payments from the plans
 
 
 
2014
12.3 
 
 
2015
12.8 
 
 
2016
13.2 
 
 
2017
13.7 
 
 
2018
14.1 
 
 
2019 - 2023
73.4 
 
 
Fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets
 
 
 
Projected benefit obligation
235.9 
213.7 
 
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation
235.9 
213.7 
 
Fair value of plan assets
160.0 
162.6 
 
Accumulated benefit obligation
235.9 
213.7 
 
Non-U.S. Pension Plans
 
 
 
Expected contributions for the pension plans
 
 
 
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year
4.7 
 
 
Projected benefit payments from the plans
 
 
 
2014
12.7 
 
 
2015
13.2 
 
 
2016
14.3 
 
 
2017
14.7 
 
 
2018
15.5 
 
 
2019 - 2023
89.1 
 
 
Fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets
 
 
 
Projected benefit obligation
274.8 
259.4 
 
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation
269.9 
254.2 
 
Fair value of plan assets
210.1 
206.9 
 
Accumulated benefit obligation
272.9 
256.7 
 
Postretirement Health and Other Plans
 
 
 
Expected contributions for the pension plans
 
 
 
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year
4.4 
 
 
Projected benefit payments from the plans
 
 
 
2014
4.4 
 
 
2015
4.5 
 
 
2016
4.6 
 
 
2017
4.9 
 
 
2018
4.9 
 
 
2019 - 2023
$ 21.4 
 
 
Leases (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Leases [Abstract]
 
 
 
Rental expense attributed to operating leases
$ 34.8 
$ 34.3 
$ 38.1 
Future minimum rental obligations under non-cancelable operating leases
 
 
 
2014
42.4 
 
 
2015
33.5 
 
 
2016
23.3 
 
 
2017
17.0 
 
 
2018
14.9 
 
 
Thereafter
23.3 
 
 
Total
$ 154.4 
 
 
Business Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations
$ 1,037.4 
$ 986.3 
$ 1,012.8 
$ 850.0 
$ 1,104.3 
$ 1,012.1 
$ 1,037.1 
$ 894.6 
$ 3,886.5 
$ 4,048.1 
$ 3,913.3 
Operating earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
Asset impairment expense
 
 
 
 
 
 
 
 
(1.1)
Amortization expense
(35.1)
 
 
 
(35.3)
 
 
 
(35.1)
(35.3)
(36.5)
Restructuring expense
 
 
 
 
 
 
 
 
(9.0)
(4.8)
(9.5)
Other (expense) income
 
 
 
 
 
 
 
 
(0.5)
0.3 
(2.5)
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
298.8 
364.4 
296.9 
Interest Expense
 
 
 
 
 
 
 
 
(94.0)
(128.4)
(135.6)
Amortization of deferred financing fees
 
 
 
 
 
 
 
 
(4.4)
(7.0)
(8.2)
Loss on debt extinguishment
 
 
 
 
 
 
 
 
(25.5)
(3.0)
(6.3)
Other (expense) income -net
 
 
 
 
 
 
 
 
(5.5)
(0.8)
0.1 
Earnings from continuing operations before taxes on earnings
38.4 
56.3 
66.1 
8.6 
60.7 
70.8 
71.4 
22.3 
169.4 
225.2 
146.9 
Capital expenditures
 
 
 
 
 
 
 
 
84.8 
110.7 
72.9 
Depreciation
 
 
 
 
 
 
 
 
68.4 
68.5 
68.1 
Total assets
3,816.6 
 
 
 
3,976.6 
 
 
 
3,816.6 
3,976.6 
4,057.3 
Crane
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations
 
 
 
 
 
 
 
 
2,305.2 
2,506.3 
2,427.1 
Operating earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
Restructuring expense
 
 
 
 
 
 
 
 
(6.6)
 
 
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
163.9 
218.8 
170.5 
Capital expenditures
 
 
 
 
 
 
 
 
57.3 
69.3 
52.7 
Depreciation
 
 
 
 
 
 
 
 
45.7 
46.9 
43.5 
Total assets
1,742.3 
 
 
 
1,900.4 
 
 
 
1,742.3 
1,900.4 
1,903.3 
Foodservice
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations
 
 
 
 
 
 
 
 
1,581.3 
1,541.8 
1,486.2 
Operating earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
Restructuring expense
 
 
 
 
 
 
 
 
(2.4)
 
 
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
234.0 
250.3 
238.6 
Capital expenditures
 
 
 
 
 
 
 
 
25.3 
33.6 
17.4 
Depreciation
 
 
 
 
 
 
 
 
21.2 
20.1 
22.3 
Total assets
1,902.0 
 
 
 
1,904.3 
 
 
 
1,902.0 
1,904.3 
1,956.8 
Corporate
 
 
 
 
 
 
 
 
 
 
 
Operating earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
(53.4)
(64.9)
(63.7)
Capital expenditures
 
 
 
 
 
 
 
 
2.2 
7.8 
2.8 
Depreciation
 
 
 
 
 
 
 
 
1.5 
1.5 
2.3 
Total assets
$ 172.3 
 
 
 
$ 171.9 
 
 
 
$ 172.3 
$ 171.9 
$ 197.2 
Business Segments (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 1,037.4 
$ 986.3 
$ 1,012.8 
$ 850.0 
$ 1,104.3 
$ 1,012.1 
$ 1,037.1 
$ 894.6 
$ 3,886.5 
$ 4,048.1 
$ 3,913.3 
Long-Lived Assets
2,600.3 
 
 
 
2,681.4 
 
 
 
2,600.3 
2,681.4 
 
United States
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,977.4 
1,978.0 
1,833.0 
Long-Lived Assets
1,880.8 
 
 
 
1,888.4 
 
 
 
1,880.8 
1,888.4 
 
Other North America
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
238.3 
292.1 
278.2 
Long-Lived Assets
12.4 
 
 
 
13.6 
 
 
 
12.4 
13.6 
 
Europe
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
821.2 
937.6 
788.0 
Long-Lived Assets
478.9 
 
 
 
530.0 
 
 
 
478.9 
530.0 
 
Asia
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
377.6 
364.5 
354.0 
Long-Lived Assets
189.7 
 
 
 
203.0 
 
 
 
189.7 
203.0 
 
Middle East
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
223.2 
174.2 
161.6 
Long-Lived Assets
1.5 
 
 
 
1.6 
 
 
 
1.5 
1.6 
 
Central and South America
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
106.9 
166.9 
243.0 
Long-Lived Assets
30.0 
 
 
 
36.0 
 
 
 
30.0 
36.0 
 
Africa
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
56.7 
30.0 
110.8 
Long-Lived Assets
 
 
 
 
 
 
 
South Pacific and Caribbean
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
13.3 
12.6 
10.6 
Long-Lived Assets
4.0 
 
 
 
4.1 
 
 
 
4.0 
4.1 
 
Australia
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
71.9 
92.2 
134.1 
Long-Lived Assets
$ 3.0 
 
 
 
$ 4.7 
 
 
 
$ 3.0 
$ 4.7 
 
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Condensed Consolidating Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 1,037.4 
$ 986.3 
$ 1,012.8 
$ 850.0 
$ 1,104.3 
$ 1,012.1 
$ 1,037.1 
$ 894.6 
$ 3,886.5 
$ 4,048.1 
$ 3,913.3 
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
2,900.4 
3,026.3 
2,970.3 
Engineering, selling and administrative expenses
 
 
 
 
 
 
 
 
641.6 
617.6 
597.6 
Asset impairment expense
 
 
 
 
 
 
 
 
1.1 
Amortization expense
35.1 
 
 
 
35.3 
 
 
 
35.1 
35.3 
36.5 
Restructuring expense
 
 
 
 
 
 
 
 
9.0 
4.8 
9.5 
Other (expense) income
 
 
 
 
 
 
 
 
(0.5)
0.3 
(2.5)
Equity in (earnings) loss of subsidiaries
 
 
 
 
 
 
 
 
Total costs and expenses
 
 
 
 
 
 
 
 
3,587.7 
3,683.7 
3,616.4 
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
298.8 
364.4 
296.9 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
(94.0)
(128.4)
(135.6)
Amortization of deferred financing fees
 
 
 
 
 
 
 
 
(4.4)
(7.0)
(8.2)
Loss on debt extinguishment
 
 
 
 
 
 
 
 
(25.5)
(3.0)
(6.3)
Management fee income (expense)
 
 
 
 
 
 
 
 
Other income (expense)-net
 
 
 
 
 
 
 
 
(5.5)
(0.8)
0.1 
Total other expenses
 
 
 
 
 
 
 
 
(129.4)
(139.2)
(150.0)
Earnings from continuing operations before taxes on earnings
38.4 
56.3 
66.1 
8.6 
60.7 
70.8 
71.4 
22.3 
169.4 
225.2 
146.9 
Provision for taxes on earnings
 
 
 
 
 
 
 
 
8.6 
36.1 
38.0 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
160.8 
189.1 
108.9 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings from discontinued operations, net of income taxes
0.1 
(0.2)
(0.3)
(1.0)
(3.9)
(3.2)
(7.6)
(4.1)
(1.4)
(18.8)
(16.3)
Loss on sale of discontinued operations, net of income taxes
(1.1)
(9.9)
(1.1)
(1.6)
(11.0)
(2.7)
Net earnings
33.6 
73.1 
46.6 
(4.9)
54.4 
50.6 
54.5 
8.1 
148.4 
167.6 
92.6 
Less: Net earnings (loss) attributable to noncontrolling interest
3.9 
33.5 
(2.3)
(3.1)
(2.3)
3.9 
25.8 
(9.1)
Net (loss) earnings attributable to Manitowoc
33.6 
73.1 
46.6 
(8.8)
20.9 
52.9 
57.6 
10.4 
144.5 
141.8 
101.7 
Comprehensive income (loss) attributable to Manitowoc
 
 
 
 
 
 
 
 
20.9 
164.3 
97.1 
Parent
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
Engineering, selling and administrative expenses
 
 
 
 
 
 
 
 
49.8 
61.4 
61.2 
Asset impairment expense
 
 
 
 
 
 
 
 
 
 
Amortization expense
 
 
 
 
 
 
 
 
Restructuring expense
 
 
 
 
 
 
 
 
Other (expense) income
 
 
 
 
 
 
 
 
Equity in (earnings) loss of subsidiaries
 
 
 
 
 
 
 
 
(165.6)
(199.6)
167.2 
Total costs and expenses
 
 
 
 
 
 
 
 
(115.8)
(138.2)
(106.0)
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
115.8 
138.2 
106.0 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
(83.8)
(118.8)
122.9 
Amortization of deferred financing fees
 
 
 
 
 
 
 
 
(4.4)
(7.0)
8.2 
Loss on debt extinguishment
 
 
 
 
 
 
 
 
(25.5)
(3.0)
(6.3)
Management fee income (expense)
 
 
 
 
 
 
 
 
62.4 
59.6 
60.1 
Other income (expense)-net
 
 
 
 
 
 
 
 
16.5 
(3.6)
16.5 
Total other expenses
 
 
 
 
 
 
 
 
(34.8)
(72.8)
(60.8)
Earnings from continuing operations before taxes on earnings
 
 
 
 
 
 
 
 
81.0 
65.4 
45.2 
Provision for taxes on earnings
 
 
 
 
 
 
 
 
(63.5)
(76.4)
(56.5)
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
144.5 
141.8 
101.7 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings from discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
Loss on sale of discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
 
Net earnings
 
 
 
 
 
 
 
 
144.5 
141.8 
101.7 
Less: Net earnings (loss) attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net (loss) earnings attributable to Manitowoc
 
 
 
 
 
 
 
 
144.5 
141.8 
101.7 
Comprehensive income (loss) attributable to Manitowoc
 
 
 
 
 
 
 
 
20.9 
164.3 
97.1 
Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
2,424.5 
2,631.3 
2,616.4 
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
1,889.9 
2,038.1 
2,022.3 
Engineering, selling and administrative expenses
 
 
 
 
 
 
 
 
287.4 
259.5 
247.6 
Asset impairment expense
 
 
 
 
 
 
 
 
1.1 
 
 
Amortization expense
 
 
 
 
 
 
 
 
29.6 
29.6 
29.9 
Restructuring expense
 
 
 
 
 
 
 
 
3.0 
0.7 
0.7 
Other (expense) income
 
 
 
 
 
 
 
 
(0.3)
(0.5)
(2.5)
Equity in (earnings) loss of subsidiaries
 
 
 
 
 
 
 
 
(73.5)
(32.5)
36.0 
Total costs and expenses
 
 
 
 
 
 
 
 
2,137.8 
2,295.9 
2,267.0 
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
286.7 
335.4 
349.4 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
(1.9)
(1.0)
2.1 
Amortization of deferred financing fees
 
 
 
 
 
 
 
 
Loss on debt extinguishment
 
 
 
 
 
 
 
 
Management fee income (expense)
 
 
 
 
 
 
 
 
(72.6)
(77.1)
(77.8)
Other income (expense)-net
 
 
 
 
 
 
 
 
59.2 
(32.6)
(45.9)
Total other expenses
 
 
 
 
 
 
 
 
(15.3)
(110.7)
(125.8)
Earnings from continuing operations before taxes on earnings
 
 
 
 
 
 
 
 
271.4 
224.7 
223.6 
Provision for taxes on earnings
 
 
 
 
 
 
 
 
45.3 
69.3 
69.2 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
226.1 
155.4 
154.4 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings from discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
(0.5)
(2.3)
(0.9)
Loss on sale of discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
 
Net earnings
 
 
 
 
 
 
 
 
225.6 
153.1 
153.5 
Less: Net earnings (loss) attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net (loss) earnings attributable to Manitowoc
 
 
 
 
 
 
 
 
225.6 
153.1 
153.5 
Comprehensive income (loss) attributable to Manitowoc
 
 
 
 
 
 
 
 
217.8 
154.1 
153.7 
Non-Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
2,076.1 
2,097.1 
1,959.0 
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
1,624.6 
1,668.5 
1,610.1 
Engineering, selling and administrative expenses
 
 
 
 
 
 
 
 
304.4 
296.7 
288.8 
Asset impairment expense
 
 
 
 
 
 
 
 
 
 
Amortization expense
 
 
 
 
 
 
 
 
5.5 
5.7 
6.6 
Restructuring expense
 
 
 
 
 
 
 
 
6.0 
4.1 
8.8 
Other (expense) income
 
 
 
 
 
 
 
 
(0.2)
0.8 
Equity in (earnings) loss of subsidiaries
 
 
 
 
 
 
 
 
Total costs and expenses
 
 
 
 
 
 
 
 
1,940.7 
1,974.2 
1,914.3 
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
135.4 
122.9 
44.7 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
(8.3)
(8.6)
(10.6)
Amortization of deferred financing fees
 
 
 
 
 
 
 
 
Loss on debt extinguishment
 
 
 
 
 
 
 
 
Management fee income (expense)
 
 
 
 
 
 
 
 
10.2 
17.5 
17.7 
Other income (expense)-net
 
 
 
 
 
 
 
 
(0.5)
35.4 
29.5 
Total other expenses
 
 
 
 
 
 
 
 
1.4 
44.3 
36.6 
Earnings from continuing operations before taxes on earnings
 
 
 
 
 
 
 
 
136.8 
167.2 
81.3 
Provision for taxes on earnings
 
 
 
 
 
 
 
 
26.8 
43.2 
25.3 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
110.0 
124.0 
56.0 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings from discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
(0.9)
(16.5)
(15.4)
Loss on sale of discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
(11.0)
(2.7)
 
Net earnings
 
 
 
 
 
 
 
 
98.1 
104.8 
40.6 
Less: Net earnings (loss) attributable to noncontrolling interest
 
 
 
 
 
 
 
 
3.9 
25.8 
(9.1)
Net (loss) earnings attributable to Manitowoc
 
 
 
 
 
 
 
 
94.2 
79.0 
49.7 
Comprehensive income (loss) attributable to Manitowoc
 
 
 
 
 
 
 
 
86.0 
62.9 
51.9 
Eliminations
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
(614.1)
(680.3)
(662.1)
Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
(614.1)
(680.3)
(662.1)
Engineering, selling and administrative expenses
 
 
 
 
 
 
 
 
Asset impairment expense
 
 
 
 
 
 
 
 
 
 
Amortization expense
 
 
 
 
 
 
 
 
Restructuring expense
 
 
 
 
 
 
 
 
Other (expense) income
 
 
 
 
 
 
 
 
Equity in (earnings) loss of subsidiaries
 
 
 
 
 
 
 
 
239.1 
232.1 
203.2 
Total costs and expenses
 
 
 
 
 
 
 
 
(375.0)
(448.2)
(458.9)
Operating earnings from continuing operations
 
 
 
 
 
 
 
 
(239.1)
(232.1)
(203.2)
Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
Amortization of deferred financing fees
 
 
 
 
 
 
 
 
Loss on debt extinguishment
 
 
 
 
 
 
 
 
Management fee income (expense)
 
 
 
 
 
 
 
 
Other income (expense)-net
 
 
 
 
 
 
 
 
(80.7)
Total other expenses
 
 
 
 
 
 
 
 
(80.7)
Earnings from continuing operations before taxes on earnings
 
 
 
 
 
 
 
 
(319.8)
(232.1)
(203.2)
Provision for taxes on earnings
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations
 
 
 
 
 
 
 
 
(319.8)
(232.1)
(203.2)
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings from discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
Loss on sale of discontinued operations, net of income taxes
 
 
 
 
 
 
 
 
 
Net earnings
 
 
 
 
 
 
 
 
(319.8)
(232.1)
(203.2)
Less: Net earnings (loss) attributable to noncontrolling interest
 
 
 
 
 
 
 
 
Net (loss) earnings attributable to Manitowoc
 
 
 
 
 
 
 
 
(319.8)
(232.1)
(203.2)
Comprehensive income (loss) attributable to Manitowoc
 
 
 
 
 
 
 
 
$ (303.8)
$ (217.0)
$ (205.6)
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 (Details 2) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Current Assets:
 
 
 
 
Cash and cash equivalents
$ 68.0 
$ 54.9 
$ 73.2 
$ 68.3 
Restricted cash
23.7 
12.8 
 
 
Accounts receivable - net
227.4 
255.5 
 
 
Intercompany short term notes receivable
 
 
Intercompany interest receivable
 
 
Inventories — net
644.5 
720.8 
 
 
Deferred income taxes
71.3 
89.9 
 
 
Other current assets
151.2 
113.9 
 
 
Current assets of discontinued operations
15.1 
 
 
Total current assets
1,186.1 
1,262.9 
 
 
Property, plant and equipment — net
591.0 
578.8 
 
 
Goodwill
1,198.1 
1,218.6 
 
 
Other intangible assets — net
714.7 
766.2 
 
 
Intercompany long-term notes receivable
 
 
Intercompany accounts receivable
 
 
Other non-current assets
126.7 
126.8 
 
 
Long-term assets of discontinued operations
23.3 
 
 
Investment in affiliates
 
 
Total assets
3,816.6 
3,976.6 
4,057.3 
 
Current Liabilities:
 
 
 
 
Accounts payable and accrued expenses
807.4 
935.6 
 
 
Short-term borrowings and current portion of long-term debt
80.3 
22.7 
 
 
Intercompany short term notes payable
 
 
Intercompany interest payable
 
 
Product warranties
77.7 
81.1 
 
 
Customer advances
21.3 
34.9 
 
 
Product liabilities
24.6 
25.0 
 
 
Current liabilities of discontinued operations
26.1 
 
 
Total current liabilities
1,011.3 
1,125.4 
 
 
Non-Current Liabilities:
 
 
 
 
Long-term debt, less current portion
1,443.2 
1,504.1 
 
 
Long-term deferred income tax liability
186.2 
214.3 
 
 
Pension obligations
141.0 
101.5 
 
 
Postretirement health and other benefit obligations
53.1 
44.7 
 
 
Long-term deferred revenue
37.9 
37.6 
 
 
Intercompany long-term note payable
 
 
Intercompany accounts payable
 
 
Other non-current liabilities
119.8 
164.5 
 
 
Long-term liabilities of discontinued operations
2.2 
 
 
Total non-current liabilities
1,981.2 
2,068.9 
 
 
Equity
 
 
 
 
Manitowoc stockholder's equity
824.1 
775.5 
 
 
Noncontrolling interest
6.8 
 
 
Total equity
824.1 
782.3 
581.3 
 
Total liabilities and equity
3,816.6 
3,976.6 
 
 
Parent
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
1.6 
1.2 
12.0 
4.2 
Restricted cash
2.8 
2.8 
 
 
Accounts receivable - net
0.1 
0.2 
 
 
Intercompany short term notes receivable
 
 
Intercompany interest receivable
41.5 
18.4 
 
 
Inventories — net
 
 
Deferred income taxes
67.1 
73.2 
 
 
Other current assets
3.6 
3.4 
 
 
Current assets of discontinued operations
 
 
Total current assets
116.7 
99.2 
 
 
Property, plant and equipment — net
7.7 
6.3 
 
 
Goodwill
 
 
Other intangible assets — net
 
 
Intercompany long-term notes receivable
892.5 
964.4 
 
 
Intercompany accounts receivable
 
 
Other non-current assets
66.7 
42.9 
 
 
Long-term assets of discontinued operations
 
 
Investment in affiliates
4,423.6 
5,356.2 
 
 
Total assets
5,507.2 
6,469.0 
 
 
Current Liabilities:
 
 
 
 
Accounts payable and accrued expenses
27.1 
108.1 
 
 
Short-term borrowings and current portion of long-term debt
24.1 
 
 
Intercompany short term notes payable
201.7 
112.1 
 
 
Intercompany interest payable
3.2 
3.2 
 
 
Product warranties
 
 
Customer advances
 
 
Product liabilities
 
 
Current liabilities of discontinued operations
 
 
Total current liabilities
256.1 
223.4 
 
 
Non-Current Liabilities:
 
 
 
 
Long-term debt, less current portion
1,393.0 
1,474.7 
 
 
Long-term deferred income tax liability
165.2 
165.2 
 
 
Pension obligations
129.1 
91.0 
 
 
Postretirement health and other benefit obligations
49.5 
40.6 
 
 
Long-term deferred revenue
 
 
Intercompany long-term note payable
191.0 
183.3 
 
 
Intercompany accounts payable
2,416.5 
3,414.0 
 
 
Other non-current liabilities
82.7 
101.3 
 
 
Long-term liabilities of discontinued operations
 
 
Total non-current liabilities
4,427.0 
5,470.1 
 
 
Equity
 
 
 
 
Manitowoc stockholder's equity
824.1 
775.5 
 
 
Noncontrolling interest
 
 
Total equity
824.1 
775.5 
 
 
Total liabilities and equity
5,507.2 
6,469.0 
 
 
Guarantor Subsidiaries
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
3.3 
3.3 
4.0 
8.5 
Restricted cash
 
 
Accounts receivable - net
16.5 
 
 
Intercompany short term notes receivable
 
 
Intercompany interest receivable
3.2 
3.2 
 
 
Inventories — net
306.3 
333.4 
 
 
Deferred income taxes
 
 
Other current assets
6.7 
5.9 
 
 
Current assets of discontinued operations
 
 
Total current assets
319.5 
362.3 
 
 
Property, plant and equipment — net
325.8 
291.9 
 
 
Goodwill
960.5 
960.5 
 
 
Other intangible assets — net
561.6 
591.3 
 
 
Intercompany long-term notes receivable
195.3 
158.5 
 
 
Intercompany accounts receivable
1,619.7 
1,565.2 
 
 
Other non-current assets
3.1 
3.4 
 
 
Long-term assets of discontinued operations
 
 
Investment in affiliates
3,629.4 
3,505.6 
 
 
Total assets
7,614.9 
7,438.7 
 
 
Current Liabilities:
 
 
 
 
Accounts payable and accrued expenses
420.8 
404.2 
 
 
Short-term borrowings and current portion of long-term debt
2.8 
0.7 
 
 
Intercompany short term notes payable
 
 
Intercompany interest payable
 
 
Product warranties
45.2 
47.3 
 
 
Customer advances
7.3 
12.9 
 
 
Product liabilities
22.1 
21.2 
 
 
Current liabilities of discontinued operations
 
 
Total current liabilities
498.2 
486.3 
 
 
Non-Current Liabilities:
 
 
 
 
Long-term debt, less current portion
25.3 
2.2 
 
 
Long-term deferred income tax liability
 
 
Pension obligations
7.9 
6.4 
 
 
Postretirement health and other benefit obligations
2.1 
2.1 
 
 
Long-term deferred revenue
10.7 
9.2 
 
 
Intercompany long-term note payable
813.5 
832.2 
 
 
Intercompany accounts payable
 
 
Other non-current liabilities
11.5 
15.6 
 
 
Long-term liabilities of discontinued operations
 
 
Total non-current liabilities
871.0 
867.7 
 
 
Equity
 
 
 
 
Manitowoc stockholder's equity
6,245.7 
6,084.7 
 
 
Noncontrolling interest
 
 
Total equity
6,245.7 
6,084.7 
 
 
Total liabilities and equity
7,614.9 
7,438.7 
 
 
Non-Guarantor Subsidiaries
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
63.1 
50.4 
57.2 
55.6 
Restricted cash
20.9 
10.0 
 
 
Accounts receivable - net
233.6 
238.8 
 
 
Intercompany short term notes receivable
201.7 
112.1 
 
 
Intercompany interest receivable
 
 
Inventories — net
338.2 
387.4 
 
 
Deferred income taxes
4.2 
16.7 
 
 
Other current assets
140.9 
104.6 
 
 
Current assets of discontinued operations
15.1 
 
 
Total current assets
1,002.6 
935.1 
 
 
Property, plant and equipment — net
257.5 
280.6 
 
 
Goodwill
237.6 
258.1 
 
 
Other intangible assets — net
153.1 
174.9 
 
 
Intercompany long-term notes receivable
851.3 
903.7 
 
 
Intercompany accounts receivable
796.8 
1,848.8 
 
 
Other non-current assets
56.9 
80.5 
 
 
Long-term assets of discontinued operations
23.3 
 
 
Investment in affiliates
 
 
Total assets
3,355.8 
4,505.0 
 
 
Current Liabilities:
 
 
 
 
Accounts payable and accrued expenses
365.8 
423.3 
 
 
Short-term borrowings and current portion of long-term debt
53.4 
22.0 
 
 
Intercompany short term notes payable
 
 
Intercompany interest payable
41.5 
18.4 
 
 
Product warranties
32.5 
33.8 
 
 
Customer advances
14.0 
22.0 
 
 
Product liabilities
2.5 
3.8 
 
 
Current liabilities of discontinued operations
26.1 
 
 
Total current liabilities
509.7 
549.4 
 
 
Non-Current Liabilities:
 
 
 
 
Long-term debt, less current portion
24.9 
27.2 
 
 
Long-term deferred income tax liability
21.0 
49.1 
 
 
Pension obligations
4.0 
4.1 
 
 
Postretirement health and other benefit obligations
1.5 
2.0 
 
 
Long-term deferred revenue
27.2 
28.4 
 
 
Intercompany long-term note payable
934.6 
1,011.1 
 
 
Intercompany accounts payable
 
 
Other non-current liabilities
25.6 
47.6 
 
 
Long-term liabilities of discontinued operations
2.2 
 
 
Total non-current liabilities
1,038.8 
1,171.7 
 
 
Equity
 
 
 
 
Manitowoc stockholder's equity
1,807.3 
2,777.1 
 
 
Noncontrolling interest
6.8 
 
 
Total equity
1,807.3 
2,783.9 
 
 
Total liabilities and equity
3,355.8 
4,505.0 
 
 
Eliminations
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
Restricted cash
 
 
Accounts receivable - net
(6.3)
 
 
Intercompany short term notes receivable
(201.7)
(112.1)
 
 
Intercompany interest receivable
(44.7)
(21.6)
 
 
Inventories — net
 
 
Deferred income taxes
 
 
Other current assets
 
 
Current assets of discontinued operations
 
 
Total current assets
(252.7)
(133.7)
 
 
Property, plant and equipment — net
 
 
Goodwill
 
 
Other intangible assets — net
 
 
Intercompany long-term notes receivable
(1,939.1)
(2,026.6)
 
 
Intercompany accounts receivable
(2,416.5)
(3,414.0)
 
 
Other non-current assets
 
 
Long-term assets of discontinued operations
 
 
Investment in affiliates
(8,053.0)
(8,861.8)
 
 
Total assets
(12,661.3)
(14,436.1)
 
 
Current Liabilities:
 
 
 
 
Accounts payable and accrued expenses
(6.3)
 
 
Short-term borrowings and current portion of long-term debt
 
 
Intercompany short term notes payable
(201.7)
(112.1)
 
 
Intercompany interest payable
(44.7)
(21.6)
 
 
Product warranties
 
 
Customer advances
 
 
Product liabilities
 
 
Current liabilities of discontinued operations
 
 
Total current liabilities
(252.7)
(133.7)
 
 
Non-Current Liabilities:
 
 
 
 
Long-term debt, less current portion
 
 
Long-term deferred income tax liability
 
 
Pension obligations
 
 
Postretirement health and other benefit obligations
 
 
Long-term deferred revenue
 
 
Intercompany long-term note payable
(1,939.1)
(2,026.6)
 
 
Intercompany accounts payable
(2,416.5)
(3,414.0)
 
 
Other non-current liabilities
 
 
Long-term liabilities of discontinued operations
 
 
Total non-current liabilities
(4,355.6)
(5,440.6)
 
 
Equity
 
 
 
 
Manitowoc stockholder's equity
(8,053.0)
(8,861.8)
 
 
Noncontrolling interest
 
 
Total equity
(8,053.0)
(8,861.8)
 
 
Total liabilities and equity
$ (12,661.3)
$ (14,436.1)
 
 
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by (used for) operating activities of continuing operations
$ 105.4 
$ 334.1 
$ 175.3 
Cash used for operating activities of discontinued operations
(7.1)
(11.0)
(12.9)
Net cash provided by operating activities
98.3 
323.1 
162.4 
Cash Flows from Investing:
 
 
 
Capital expenditures
(84.8)
(110.7)
(72.9)
Proceeds from sale of property, plant and equipment
12.8 
4.1 
0.8 
Restricted cash
(11.6)
(2.0)
(3.3)
Payments for (Proceeds from) Businesses and Interest in Affiliates
 
(12.2)
 
Payments to Acquire Businesses, Net of Cash Acquired
(12.2)
Proceeds from sale of business
39.2 
Intercompany investments
Net cash (used for) provided by investing activities of continuing operations
(83.6)
(81.6)
(75.4)
Net cash provided by (used for) investing activities of discontinued operations
(0.6)
(0.1)
Net cash (used for) provided by investing activities
(83.6)
(82.2)
(75.5)
Cash Flows from Financing:
 
 
 
Payments on long-term debt
(638.7)
(266.5)
(495.4)
Proceeds from long-term debt
640.3 
43.0 
383.3 
(Payments on) proceeds from revolving credit facility-net
(34.4)
34.4 
Proceeds (payments) on notes financing-net
(0.3)
6.6 
(10.4)
Proceeds from swap monetization
14.8 
Debt issue costs
(5.2)
(1.1)
(5.7)
Dividends paid
(10.8)
(10.7)
(10.6)
Payments of Dividends
10.8 
 
 
Exercises of stock options
25.9 
6.7 
6.4 
Proceeds from Stock Options Exercised
25.9 
6.7 
 
Intercompany financing
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
11.2 
(256.4)
(83.2)
Net cash used for financing activities of discontinued operations
(7.2)
Net cash used for financing activities
4.0 
(256.4)
(83.2)
Effect of exchange rate changes on cash
(5.6)
(2.8)
1.2 
Net increase (decrease) in cash and cash equivalents
13.1 
(18.3)
4.9 
Balance at beginning of year
54.9 
73.2 
68.3 
Balance at end of year
68.0 
54.9 
73.2 
Parent
 
 
 
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by (used for) operating activities of continuing operations
(124.3)
(51.6)
(22.8)
Cash used for operating activities of discontinued operations
Net cash provided by operating activities
(124.3)
(51.6)
(22.8)
Cash Flows from Investing:
 
 
 
Capital expenditures
(2.2)
(0.8)
(1.4)
Proceeds from sale of property, plant and equipment
Restricted cash
2.6 
1.0 
Payments for (Proceeds from) Businesses and Interest in Affiliates
 
 
Proceeds from sale of business
 
 
Intercompany investments
77.4 
197.1 
131.4 
Net cash (used for) provided by investing activities of continuing operations
 
198.9 
131.0 
Net cash provided by (used for) investing activities of discontinued operations
 
Net cash (used for) provided by investing activities
75.2 
198.9 
131.0 
Cash Flows from Financing:
 
 
 
Payments on long-term debt
(607.7)
(220.6)
(439.7)
Proceeds from long-term debt
550.0 
300.0 
(Payments on) proceeds from revolving credit facility-net
 
(34.5)
34.4 
Proceeds (payments) on notes financing-net
Proceeds from swap monetization
 
 
14.8 
Debt issue costs
(5.2)
(1.1)
(5.7)
Dividends paid
 
(10.7)
(10.6)
Payments of Dividends
10.8 
 
 
Exercises of stock options
 
 
6.4 
Proceeds from Stock Options Exercised
25.9 
6.7 
 
Intercompany financing
97.3 
102.1 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
49.5 
 
 
Net cash used for financing activities of discontinued operations
 
 
Net cash used for financing activities
49.5 
(158.1)
(100.4)
Effect of exchange rate changes on cash
Net increase (decrease) in cash and cash equivalents
0.4 
(10.8)
7.8 
Balance at beginning of year
1.2 
12.0 
4.2 
Balance at end of year
1.6 
1.2 
12.0 
Guarantor Subsidiaries
 
 
 
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by (used for) operating activities of continuing operations
243.4 
224.9 
167.4 
Cash used for operating activities of discontinued operations
(0.4)
(2.3)
(0.9)
Net cash provided by operating activities
243.0 
222.6 
166.5 
Cash Flows from Investing:
 
 
 
Capital expenditures
(51.3)
(57.4)
(36.5)
Proceeds from sale of property, plant and equipment
0.1 
2.0 
Restricted cash
Payments for (Proceeds from) Businesses and Interest in Affiliates
 
 
Proceeds from sale of business
 
 
Intercompany investments
(213.9)
(167.2)
(175.4)
Net cash (used for) provided by investing activities of continuing operations
 
(222.6)
(211.9)
Net cash provided by (used for) investing activities of discontinued operations
 
Net cash (used for) provided by investing activities
(265.1)
(222.6)
(211.9)
Cash Flows from Financing:
 
 
 
Payments on long-term debt
(1.7)
(0.7)
(0.7)
Proceeds from long-term debt
26.8 
(Payments on) proceeds from revolving credit facility-net
 
Proceeds (payments) on notes financing-net
(2.1)
Proceeds from swap monetization
 
 
Debt issue costs
Dividends paid
 
Payments of Dividends
 
 
Exercises of stock options
 
 
Proceeds from Stock Options Exercised
 
Intercompany financing
(3.0)
43.7 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
22.1 
 
 
Net cash used for financing activities of discontinued operations
 
 
Net cash used for financing activities
22.1 
(0.7)
40.9 
Effect of exchange rate changes on cash
Net increase (decrease) in cash and cash equivalents
(0.7)
(4.5)
Balance at beginning of year
3.3 
4.0 
8.5 
Balance at end of year
3.3 
3.3 
4.0 
Non-Guarantor Subsidiaries
 
 
 
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by (used for) operating activities of continuing operations
67.0 
160.8 
30.7 
Cash used for operating activities of discontinued operations
(6.7)
(8.7)
(12.0)
Net cash provided by operating activities
60.3 
152.1 
18.7 
Cash Flows from Investing:
 
 
 
Capital expenditures
(31.3)
(52.5)
(35.0)
Proceeds from sale of property, plant and equipment
12.7 
2.1 
0.8 
Restricted cash
(11.6)
(4.6)
(4.3)
Payments for (Proceeds from) Businesses and Interest in Affiliates
 
(12.2)
 
Proceeds from sale of business
 
39.2 
 
Intercompany investments
118.8 
(169.3)
(4.8)
Net cash (used for) provided by investing activities of continuing operations
 
(197.3)
(43.3)
Net cash provided by (used for) investing activities of discontinued operations
 
(0.6)
(0.1)
Net cash (used for) provided by investing activities
88.6 
(197.9)
(43.4)
Cash Flows from Financing:
 
 
 
Payments on long-term debt
(29.3)
(45.2)
(55.0)
Proceeds from long-term debt
63.5 
43.0 
83.3 
(Payments on) proceeds from revolving credit facility-net
 
0.1 
Proceeds (payments) on notes financing-net
(0.3)
6.6 
(8.3)
Proceeds from swap monetization
 
 
Debt issue costs
Dividends paid
 
Payments of Dividends
80.7 
 
 
Exercises of stock options
 
 
Proceeds from Stock Options Exercised
 
Intercompany financing
(76.6)
37.3 
5.1 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
(123.4)
 
 
Net cash used for financing activities of discontinued operations
(7.2)
 
 
Net cash used for financing activities
(130.6)
41.8 
25.1 
Effect of exchange rate changes on cash
(5.6)
(2.8)
1.2 
Net increase (decrease) in cash and cash equivalents
12.7 
(6.8)
1.6 
Balance at beginning of year
50.4 
57.2 
55.6 
Balance at end of year
63.1 
50.4 
57.2 
Eliminations
 
 
 
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by (used for) operating activities of continuing operations
(80.7)
Cash used for operating activities of discontinued operations
Net cash provided by operating activities
(80.7)
Cash Flows from Investing:
 
 
 
Capital expenditures
Proceeds from sale of property, plant and equipment
Restricted cash
Payments for (Proceeds from) Businesses and Interest in Affiliates
 
 
Proceeds from sale of business
 
 
Intercompany investments
17.7 
139.4 
48.8 
Net cash (used for) provided by investing activities of continuing operations
 
139.4 
48.8 
Net cash provided by (used for) investing activities of discontinued operations
 
Net cash (used for) provided by investing activities
17.7 
139.4 
48.8 
Cash Flows from Financing:
 
 
 
Payments on long-term debt
Proceeds from long-term debt
(Payments on) proceeds from revolving credit facility-net
 
Proceeds (payments) on notes financing-net
Proceeds from swap monetization
 
 
Debt issue costs
Dividends paid
 
Payments of Dividends
(80.7)
 
 
Exercises of stock options
 
 
Proceeds from Stock Options Exercised
 
Intercompany financing
(17.7)
(139.4)
(48.8)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
63.0 
 
 
Net cash used for financing activities of discontinued operations
 
 
Net cash used for financing activities
63.0 
(139.4)
(48.8)
Effect of exchange rate changes on cash
Net increase (decrease) in cash and cash equivalents
Balance at beginning of year
Balance at end of year
$ 0 
$ 0 
$ 0 
Quarterly Financial Data (Unaudited) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 1,037.4 
$ 986.3 
$ 1,012.8 
$ 850.0 
$ 1,104.3 
$ 1,012.1 
$ 1,037.1 
$ 894.6 
$ 3,886.5 
$ 4,048.1 
$ 3,913.3 
Gross profit
241.5 
245.2 
272.3 
227.1 
261.6 
262.1 
276.0 
222.1 
 
 
 
Earnings from continuing operations before taxes on earnings
38.4 
56.3 
66.1 
8.6 
60.7 
70.8 
71.4 
22.3 
169.4 
225.2 
146.9 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
(Loss) earnings from discontinued operations, net of income taxes
0.1 
(0.2)
(0.3)
(1.0)
(3.9)
(3.2)
(7.6)
(4.1)
(1.4)
(18.8)
(16.3)
Loss on sale of discontinued operations, net of income taxes
(1.1)
(9.9)
(1.1)
(1.6)
(11.0)
(2.7)
Net earnings
33.6 
73.1 
46.6 
(4.9)
54.4 
50.6 
54.5 
8.1 
148.4 
167.6 
92.6 
Less: Net earnings (loss) attributable to noncontrolling interest, net of tax
3.9 
33.5 
(2.3)
(3.1)
(2.3)
3.9 
25.8 
(9.1)
Net (loss) earnings attributable to Manitowoc
$ 33.6 
$ 73.1 
$ 46.6 
$ (8.8)
$ 20.9 
$ 52.9 
$ 57.6 
$ 10.4 
$ 144.5 
$ 141.8 
$ 101.7 
Basic earnings per share:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations attributable to Manitowoc common shareholders
$ 0.25 
$ 0.55 
$ 0.35 
$ 0.01 
$ 0.18 
$ 0.41 
$ 0.47 
$ 0.11 
$ 1.16 
$ 1.16 
$ 0.83 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations attributable to Manitowoc common shareholders
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ (0.02)
$ (0.01)
$ (0.04)
$ (0.02)
$ (0.01)
$ (0.08)
$ (0.06)
Loss on sale of discontinued operations, net of income taxes
$ 0.00 
$ (0.01)
$ 0.00 
$ (0.07)
$ (0.01)
$ 0.00 
$ 0.00 
$ (0.01)
$ (0.08)
$ (0.02)
$ 0.00 
(Loss) earnings per share attributable to Manitowoc common shareholders
$ 0.25 
$ 0.54 
$ 0.35 
$ (0.07)
$ 0.16 
$ 0.40 
$ 0.43 
$ 0.08 
$ 1.07 
$ 1.07 
$ 0.77 
Diluted earnings per share:
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations attributable to Manitowoc common shareholders
$ 0.24 
$ 0.54 
$ 0.34 
$ 0.01 
$ 0.18 
$ 0.40 
$ 0.46 
$ 0.10 
$ 1.14 
$ 1.14 
$ 0.82 
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Loss from discontinued operations attributable to Manitowoc common shareholders
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.00 
$ (0.02)
$ (0.01)
$ (0.04)
$ (0.02)
$ (0.01)
$ (0.08)
$ (0.06)
Loss on sale of discontinued operations, net of income taxes
$ 0.00 
$ (0.01)
$ 0.00 
$ (0.07)
$ (0.01)
$ 0.00 
$ 0.00 
$ (0.01)
$ (0.08)
$ (0.02)
$ 0.00 
(Loss) earnings per share attributable to Manitowoc common shareholders
$ 0.25 
$ 0.53 
$ 0.34 
$ (0.06)
$ 0.15 
$ 0.39 
$ 0.43 
$ 0.08 
$ 1.05 
$ 1.05 
$ 0.76 
Dividends per common share (in dollars per share)
$ 0.08 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 
$ 0.00 
$ 0.00 
$ 0.00 
$ 0.08 
$ 0.08 
$ 0.08 
Subsequent Events Subsequent Event(Details) (USD $)
In Millions, unless otherwise specified
2 Months Ended
Dec. 31, 2013
Manitowoc Dong Yue [Member]
Jan. 3, 2014
New Senior Credit Facility [Member]
Feb. 18, 2014
Senior Notes 9.50% due 2018
Subsequent Event [Line Items]
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
$ 1,050.0 
 
Repayments of Long-term Debt including Redemption Premium
 
 
$ 419.0 
Debt Instrument, Redemption Price, Percentage
 
 
104.75% 
Noncontrolling Interest, Ownership Percentage by Parent
50.00% 
 
 
Schedule II: Valuation and Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Allowance for doubtful accounts
 
 
 
Valuation and Qualifying Accounts
 
 
 
Balance at Beginning of Year
$ 18.2 
$ 13.3 
$ 12.8 
Charge to Costs and Expenses
9.2 
8.1 
6.5 
Utilization of Reserve
(6.4)
(3.4)
(6.1)
Other, primarily impact of Foreign Exchange Rates
(1.6)
0.2 
0.1 
Balance at end of Year
19.4 
18.2 
13.3 
Deferred tax valuation allowance
 
 
 
Valuation and Qualifying Accounts
 
 
 
Balance at Beginning of Year
149.8 
158.0 
118.9 
Charge to Costs and Expenses
32.4 
1.1 
35.7 
Utilization of Reserve
(0.4)
(3.4)
Other, primarily impact of Foreign Exchange Rates
(13.6)
(5.9)
3.4 
Balance at end of Year
$ 168.2 
$ 149.8 
$ 158.0