UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_______________________________________________________________________________________________________________________________________________________________________________________________________

FORM 10-Q


(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended:	September 30, ~~2020~~2021


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
						For the transition period from to

Commission file number 000-54799

HYSTER-YALE MATERIALS HANDLING, INC.

(Exact name of registrant as specified in its charter)

Delaware

31-1637659

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

5875 LANDERBROOK DRIVE, SUITE 300

CLEVELAND

(440)

449-9600

44124-4069

(Address of principal executive offices)

(Registrant's telephone number, including area code)

(Zip code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 Par Value Per Share	HY	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑☐

Accelerated filer

☐☑

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☑

Number of shares of Class A Common Stock outstanding at October ~~30, 2020: 12,953,446~~29, 2021: 12,992,046

Number of shares of Class B Common Stock outstanding at October ~~30, 2020: 3,851,991~~29, 2021: 3,834,854

HYSTER-YALE MATERIALS HANDLING, INC.

TABLE OF CONTENTS

Page Number

Part I.

FINANCIAL INFORMATION

Item 1

Financial Statements

Unaudited Condensed Consolidated Balance Sheets

Unaudited Condensed Consolidated Statements of Operations

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)

Unaudited Condensed Consolidated Statements of Cash Flows

Unaudited Condensed Consolidated Statements of Changes in Equity

Notes to Unaudited Condensed Consolidated Financial Statements

Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

2325

Item 3

Quantitative and Qualitative Disclosures About Market Risk

3335

Item 4

Controls and Procedures

Unregistered Sales of Equity Securities and Use of Proceeds

3436

Item 3

Defaults Upon Senior Securities

3436

Item 4

Mine Safety Disclosures

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30
2020 DECEMBER 31
2019
(In millions, except share data)
ASSETS
Current Assets
Cash and cash equivalents $ 89.9 $ 64.6
Accounts receivable, net 398.1 468.3
Inventories, net 490.3 559.9
Prepaid expenses and other 53.1 63.0
Total Current Assets 1,031.4 1,155.8
Property, Plant and Equipment, Net 329.2 308.5
Intangible Assets, Net 57.0 60.1
Goodwill 109.9 106.7
Deferred Income Taxes 25.3 30.8
Investment in Unconsolidated Affiliates 75.8 80.0
Other Non-current Assets 105.3 105.3
Total Assets $ 1,733.9 $ 1,847.2
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $ 361.8 $ 401.5
Accounts payable, affiliates 9.1 15.6
Revolving credit facilities 0.6 7.7
Current maturities of long-term debt 80.2 74.6
Accrued payroll 40.0 66.1
Deferred revenue 39.7 49.1
Other current liabilities 146.4 202.4
Total Current Liabilities 677.8 817.0
Long-term Debt 216.9 204.7
Self-insurance Liabilities 30.8 31.4
Pension Obligations 12.7 13.5
Deferred Income Taxes 14.8 15.4
Other Long-term Liabilities 178.3 188.2
Total Liabilities 1,131.3 1,270.2
Stockholders' Equity
Common stock:
Class A, par value $0.01 per share, 12,941,147 shares outstanding (2019 - 12,802,455 shares outstanding) 0.1 0.1
Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 3,855,790 shares outstanding (2019 - 3,864,462 shares outstanding) 0.1 0.1
Capital in excess of par value 312.7 321.3
Treasury stock (6.5) (15.9)
Retained earnings 435.4 427.4
Accumulated other comprehensive loss (172.4) (188.7)
Total Stockholders' Equity 569.4 544.3
Noncontrolling Interests 33.2 32.7
Total Equity 602.6 577.0
Total Liabilities and Equity $ 1,733.9 $ 1,847.2


	SEPTEMBER 30 2021		DECEMBER 31 2020
	(In millions, except share data)
ASSETS
Current Assets
Cash and cash equivalents	$	61.4	$	151.4
Accounts receivable, net	475.8		412.1
Inventories, net	758.0		509.4
Prepaid expenses and other	49.8		56.8
Total Current Assets	1,345.0		1,129.7
Property, Plant and Equipment, Net	325.4		340.4
Intangible Assets, Net	52.3		58.5
Goodwill	112.3		114.7
Deferred Income Taxes	4.7		24.4
Investment in Unconsolidated Affiliates	69.6		80.2
Other Non-current Assets	101.6		111.6
Total Assets	$	2,010.9	$	1,859.5
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	526.6	$	412.0
Accounts payable, affiliates	14.8		16.1
Revolving credit facilities	80.1		0.7
Current maturities of long-term debt	86.9		82.4
Accrued payroll	55.7		46.1

Deferred revenue	51.9		41.7
Other current liabilities	189.6		156.9
Total Current Liabilities	1,005.6		755.9
Long-term Debt	261.0		206.1
Self-insurance Liabilities	35.3		30.2
Pension Obligations	11.1		19.8
Deferred Income Taxes	13.4		14.9
Other Long-term Liabilities	174.3		181.5
Total Liabilities	1,500.7		1,208.4
Stockholders' Equity
Common stock:
Class A, par value $0.01 per share, 12,985,856 shares outstanding (2020 - 12,956,301 shares outstanding)	0.1		0.1
Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 3,835,005 shares outstanding (2020 - 3,849,136 shares outstanding)	0.1		0.1
Capital in excess of par value	315.0		312.6
Treasury stock	(4.9)		(6.0)
Retained earnings	357.3		443.2
Accumulated other comprehensive loss	(191.5)		(133.1)
Total Stockholders' Equity	476.1		616.9
Noncontrolling Interests	34.1		34.2
Total Equity	510.2		651.1
Total Liabilities and Equity	$	2,010.9	$	1,859.5

See notes to unaudited condensed consolidated financial statements.

Table of Contents

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


		THREE MONTHS ENDED				NINE MONTHS ENDED					THREE MONTHS ENDED				NINE MONTHS ENDED
		SEPTEMBER 30				SEPTEMBER 30					SEPTEMBER 30				SEPTEMBER 30
		2020		2019		2020		2019			2021		2020		2021		2020
		(In millions, except per share data)									(In millions, except per share data)
Revenues	Revenues	$	652.4	$	766.0	$	2,092.5	$	2,457.0	Revenues	$	748.2	$	652.4	$	2,246.0	$	2,092.5
Cost of sales	Cost of sales	549.0		631.0		1,748.8		2,056.4		Cost of sales	683.1		549.0		1,946.1		1,748.8
Gross Profit	Gross Profit	103.4		135.0		343.7		400.6		Gross Profit	65.1		103.4		299.9		343.7
Operating Expenses	Operating Expenses									Operating Expenses
Selling, general and administrative expenses	Selling, general and administrative expenses	96.1		115.5		307.5		354.8		Selling, general and administrative expenses	119.4		96.1		345.2		307.5

Operating Profit		7.3		19.5		36.2		45.8
Operating Profit (Loss)										Operating Profit (Loss)	(54.3)		7.3		(45.3)		36.2
Other (income) expense	Other (income) expense									Other (income) expense
Interest expense	Interest expense	3.1		5.3		10.7		14.9		Interest expense	4.1		3.1		10.7		10.7
Income from unconsolidated affiliates	Income from unconsolidated affiliates	(1.6)		(2.1)		(4.0)		(7.9)		Income from unconsolidated affiliates	(2.6)		(1.6)		(8.2)		(4.0)
Other, net	Other, net	(0.6)		(1.7)		1.7		(5.2)		Other, net	0.5		(0.6)		0.1		1.7
		0.9		1.5		8.4		1.8			2.0		0.9		2.6		8.4
Income Before Income Taxes		6.4		18.0		27.8		44.0
Income (Loss) Before Income Taxes										Income (Loss) Before Income Taxes	(56.3)		6.4		(47.9)		27.8
Income tax provision	Income tax provision	0.7		4.9		2.5		10.8		Income tax provision	20.5		0.7		20.5		2.5
Net Income		5.7		13.1		25.3		33.2
Net (income) loss attributable to noncontrolling interests		(0.6)		(0.3)		(1.3)		(0.8)
Net Income Attributable to Stockholders		$	5.1	$	12.8	$	24.0	$	32.4
Net Income (Loss)										Net Income (Loss)	(76.8)		5.7		(68.4)		25.3
Net income attributable to noncontrolling interests										Net income attributable to noncontrolling interests	(0.4)		(0.6)		(1.3)		(1.3)
Net Income (Loss) Attributable to Stockholders										Net Income (Loss) Attributable to Stockholders	$	(77.2)	$	5.1	$	(69.7)	$	24.0

Basic Earnings per Share		$	0.30	$	0.77	$	1.43	$	1.95
Diluted Earnings per Share		$	0.30	$	0.76	$	1.43	$	1.94
Basic Earnings (Loss) per Share										Basic Earnings (Loss) per Share	$	(4.59)	$	0.30	$	(4.15)	$	1.43
Diluted Earnings (Loss) per Share										Diluted Earnings (Loss) per Share	$	(4.59)	$	0.30	$	(4.15)	$	1.43

Dividends per Share	Dividends per Share	$	0.3175	$	0.3175	$	0.9525	$	0.9450	Dividends per Share	$	0.3225	$	0.3175	$	0.9625	$	0.9525

Basic Weighted Average Shares Outstanding	Basic Weighted Average Shares Outstanding	16.795		16.660		16.766		16.638		Basic Weighted Average Shares Outstanding	16.820		16.795		16.815		16.766
Diluted Weighted Average Shares Outstanding	Diluted Weighted Average Shares Outstanding	16.803		16.735		16.796		16.709		Diluted Weighted Average Shares Outstanding	16.820		16.803		16.815		16.796

See notes to unaudited condensed consolidated financial statements.

Table of Contents

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


		THREE MONTHS ENDED				NINE MONTHS ENDED					THREE MONTHS ENDED				NINE MONTHS ENDED
		SEPTEMBER 30				SEPTEMBER 30					SEPTEMBER 30				SEPTEMBER 30
		2020		2019		2020		2019			2021		2020		2021		2020
		(In millions)									(In millions)
Net Income		$	5.7	$	13.1	$	25.3	$	33.2
Net Income (Loss)										Net Income (Loss)	$	(76.8)	$	5.7	$	(68.4)	$	25.3
Other comprehensive income (loss)	Other comprehensive income (loss)									Other comprehensive income (loss)
Foreign currency translation adjustment	Foreign currency translation adjustment	21.9		(23.3)		4.7		(23.1)		Foreign currency translation adjustment	(14.6)		21.9		(27.4)		4.7
Current period cash flow hedging activity	Current period cash flow hedging activity	15.8		(15.6)		1.2		(25.7)		Current period cash flow hedging activity	(18.8)		15.8		(28.1)		1.2
Reclassification of hedging activities into earnings	Reclassification of hedging activities into earnings	2.0		1.8		10.4		5.1		Reclassification of hedging activities into earnings	(2.9)		2.0		(5.2)		10.4
Current period pension adjustment	Current period pension adjustment	(2.8)		0		(2.8)		0		Current period pension adjustment	(1.4)		(2.8)		(1.4)		(2.8)
Reclassification of pension into earnings	Reclassification of pension into earnings	1.0		0.8		2.8		2.4		Reclassification of pension into earnings	1.5		1.0		3.7		2.8
Comprehensive Income (Loss)	Comprehensive Income (Loss)	$	43.6	$	(23.2)	$	41.6	$	(8.1)	Comprehensive Income (Loss)	$	(113.0)	$	43.6	$	(126.8)	$	41.6
Other comprehensive (income) loss attributable to noncontrolling interests
Net (income) loss attributable to noncontrolling interests		(0.6)		(0.3)		(1.3)		(0.8)
Other comprehensive income (loss) attributable to noncontrolling interests										Other comprehensive income (loss) attributable to noncontrolling interests
Net income attributable to noncontrolling interests										Net income attributable to noncontrolling interests	(0.4)		(0.6)		(1.3)		(1.3)
Foreign currency translation adjustment attributable to noncontrolling interests	Foreign currency translation adjustment attributable to noncontrolling interests	(0.4)		0.3		0.5		0.3		Foreign currency translation adjustment attributable to noncontrolling interests	1.1		(0.4)		1.2		0.5
Comprehensive Income (Loss) Attributable to Stockholders	Comprehensive Income (Loss) Attributable to Stockholders	$	42.6	$	(23.2)	$	40.8	$	(8.6)	Comprehensive Income (Loss) Attributable to Stockholders	$	(112.3)	$	42.6	$	(126.9)	$	40.8

See notes to unaudited condensed consolidated financial statements.

Table of Contents

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


		NINE MONTHS ENDED					NINE MONTHS ENDED
		SEPTEMBER 30					SEPTEMBER 30
		2020		2019			2021		2020
		(In millions)					(In millions)
Operating Activities	Operating Activities					Operating Activities
Net income		$	25.3	$	33.2
Adjustments to reconcile net income to net cash used for operating activities:
Net income (loss)						Net income (loss)	$	(68.4)	$	25.3
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:						Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	Depreciation and amortization	31.8		32.3		Depreciation and amortization	34.7		31.8
Amortization of deferred financing fees	Amortization of deferred financing fees	1.3		1.4		Amortization of deferred financing fees	2.7		1.3
Deferred income taxes	Deferred income taxes	(0.2)		(1.3)		Deferred income taxes	16.6		(0.2)

Gain on the sale of investment						Gain on the sale of investment	(4.6)		—
Impairment charge						Impairment charge	10.0		—
Stock-based compensation	Stock-based compensation	0.9		6.1		Stock-based compensation	3.5		0.9
Dividends from unconsolidated affiliates	Dividends from unconsolidated affiliates	7.3		5.1		Dividends from unconsolidated affiliates	5.5		7.3
Other non-current liabilities	Other non-current liabilities	(11.9)		(3.7)		Other non-current liabilities	(5.9)		(11.9)
Other	Other	17.4		2.6		Other	(14.3)		17.4
Working capital changes:	Working capital changes:					Working capital changes:
Accounts receivable	Accounts receivable	60.2		(3.5)		Accounts receivable	(70.6)		60.2
Inventories	Inventories	71.1		(73.6)		Inventories	(261.9)		71.1
Other current assets	Other current assets	(7.4)		(4.2)		Other current assets	(12.2)		(7.4)
Accounts payable	Accounts payable	(44.7)		(18.3)		Accounts payable	123.8		(44.7)
Other current liabilities	Other current liabilities	(75.0)		6.6		Other current liabilities	49.3		(75.0)
Net cash provided by (used for) operating activities	Net cash provided by (used for) operating activities	76.1		(17.3)		Net cash provided by (used for) operating activities	(191.8)		76.1
Investing Activities	Investing Activities					Investing Activities
Expenditures for property, plant and equipment	Expenditures for property, plant and equipment	(37.2)		(31.4)		Expenditures for property, plant and equipment	(29.5)		(37.2)
Proceeds from the sale of assets	Proceeds from the sale of assets	7.4		6.9		Proceeds from the sale of assets	3.7		7.4
Proceeds from the sale of investment						Proceeds from the sale of investment	15.7		—

Net cash used for investing activities	Net cash used for investing activities	(29.8)		(24.5)		Net cash used for investing activities	(10.1)		(29.8)
Financing Activities	Financing Activities					Financing Activities
Additions to long-term debt	Additions to long-term debt	70.0		52.1		Additions to long-term debt	100.8		70.0
Reductions of long-term debt	Reductions of long-term debt	(65.5)		(63.5)		Reductions of long-term debt	(41.8)		(65.5)
Net change to revolving credit agreements	Net change to revolving credit agreements	(7.2)		52.9		Net change to revolving credit agreements	79.7		(7.2)
Cash dividends paid	Cash dividends paid	(16.0)		(15.7)		Cash dividends paid	(16.2)		(16.0)
Cash dividends paid to noncontrolling interest	Cash dividends paid to noncontrolling interest	(0.3)		(0.2)		Cash dividends paid to noncontrolling interest	(0.2)		(0.3)
Financing fees paid	Financing fees paid	0		(0.4)		Financing fees paid	(7.6)		—
Purchase of treasury stock	Purchase of treasury stock	(0.1)		(0.2)		Purchase of treasury stock	—		(0.1)

Net cash provided by (used for) financing activities	Net cash provided by (used for) financing activities	(19.1)		25.0		Net cash provided by (used for) financing activities	114.7		(19.1)
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	(1.9)		(4.1)		Effect of exchange rate changes on cash	(2.8)		(1.9)
Cash and Cash Equivalents	Cash and Cash Equivalents					Cash and Cash Equivalents
Increase (decrease) for the period	Increase (decrease) for the period	25.3		(20.9)		Increase (decrease) for the period	(90.0)		25.3
Balance at the beginning of the period	Balance at the beginning of the period	64.6		83.7		Balance at the beginning of the period	151.4		64.6
Balance at the end of the period	Balance at the end of the period	$	89.9	$	62.8	Balance at the end of the period	$	61.4	$	89.9

See notes to unaudited condensed consolidated financial statements.

Table of Contents

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


													Accumulated Other Comprehensive Income (Loss)																													Accumulated Other Comprehensive Income (Loss)
		Class A Common Stock		Class B Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Foreign Currency Translation Adjustment			Deferred Gain (Loss) on Cash Flow Hedging			Pension Adjustment			Total Stockholders' Equity			Noncontrolling Interests			Total Equity				Class A Common Stock		Class B Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Foreign Currency Translation Adjustment			Deferred Gain (Loss) on Cash Flow Hedging			Pension Adjustment			Total Stockholders' Equity			Noncontrolling Interests			Total Equity
		(In millions)																													(In millions)
Balance, June 30, 2019		$	0.1	$	0.1	$	(16.7)	$	318.7	$	421.8		$	(85.7)		$	(21.4)		$	(79.3)		$	537.6		$	32.5		$	570.1
Balance, June 30, 2020																														Balance, June 30, 2020	$	0.1	$	0.1	$	(7.2)	$	313.1	$	435.7		$	(110.1)		$	(24.7)		$	(75.5)		$	531.5		$	32.2		$	563.7

Stock-based compensation	Stock-based compensation	—		—		—		1.3		—			—			—			—			1.3			—			1.3		Stock-based compensation	—		—		—		0.3		—			—			—			—			0.3			—			0.3
Stock issued under stock compensation plans	Stock issued under stock compensation plans	—		—		0.4		(0.4)		—			—			—			—			0			—			0		Stock issued under stock compensation plans	—		—		0.7		(0.7)		—			—			—			—			—			—			—

Net income	Net income	—		—		—		—		12.8			—			—			—			12.8			0.3			13.1		Net income	—		—		—		—		5.1			—			—			—			5.1			0.6			5.7
Cash dividends	Cash dividends	—		—		—		—		(5.3)			—			—			—			(5.3)			(0.1)			(5.4)		Cash dividends	—		—		—		—		(5.4)			—			—			—			(5.4)			—			(5.4)
Current period other comprehensive income (loss)	Current period other comprehensive income (loss)	—		—		—		—		—			(23.3)			(15.6)			0			(38.9)			—			(38.9)		Current period other comprehensive income (loss)	—		—		—		—		—			21.9			15.8			(2.8)			34.9			—			34.9
Reclassification adjustment to net income	Reclassification adjustment to net income	—		—		—		—		—			—			1.8			0.8			2.6			—			2.6		Reclassification adjustment to net income	—		—		—		—		—			—			2.0			1.0			3.0			—			3.0

Foreign currency translation on noncontrolling interest	Foreign currency translation on noncontrolling interest	—		—		—		—		—			—			—			—			—			(0.3)			(0.3)		Foreign currency translation on noncontrolling interest	—		—		—		—		—			—			—			—			—			0.4			0.4
Balance, September 30, 2019		$	0.1	$	0.1	$	(16.3)	$	319.6	$	429.3		$	(109.0)		$	(35.2)		$	(78.5)		$	510.1		$	32.4		$	542.5
Balance, September 30, 2020																														Balance, September 30, 2020	$	0.1	$	0.1	$	(6.5)	$	312.7	$	435.4		$	(88.2)		$	(6.9)		$	(77.3)		$	569.4		$	33.2		$	602.6

Balance, June 30, 2020		$	0.1	$	0.1	$	(7.2)	$	313.1	$	435.7		$	(110.1)		$	(24.7)		$	(75.5)		$	531.5		$	32.2		$	563.7
Balance, June 30, 2021																														Balance, June 30, 2021	$	0.1	$	0.1	$	(5.2)	$	315.5	$	440.0		$	(70.4)		$	0.9		$	(85.8)		$	595.2		$	34.8		$	630.0

Stock-based compensation	Stock-based compensation	—		—		—		0.3		—			—			—			—			0.3			—			0.3		Stock-based compensation	—		—		—		(0.2)		—			—			—			—			(0.2)			—			(0.2)
Stock issued under stock compensation plans	Stock issued under stock compensation plans	—		—		0.7		(0.7)		—			—			—			—			0			—			0		Stock issued under stock compensation plans	—		—		0.3		(0.3)		—			—			—			—			—			—			—

Net income		—		—		—		—		5.1			—			—			—			5.1			0.6			5.7
Net income (loss)																														Net income (loss)	—		—		—		—		(77.2)			—			—			—			(77.2)			0.4			(76.8)
Cash dividends	Cash dividends	—		—		—		—		(5.4)			—			—			—			(5.4)			0			(5.4)		Cash dividends	—		—		—		—		(5.5)			—			—			—			(5.5)			—			(5.5)
Current period other comprehensive income		—		—		—		—		—			21.9			15.8			(2.8)			34.9			—			34.9
Reclassification adjustment to net income		—		—		—		—		—			—			2.0			1.0			3.0			—			3.0
Current period other comprehensive income (loss)																														Current period other comprehensive income (loss)	—		—		—		—		—			(14.6)			(18.8)			(1.4)			(34.8)			—			(34.8)
Reclassification adjustment to net income (loss)																														Reclassification adjustment to net income (loss)	—		—		—		—		—			—			(2.9)			1.5			(1.4)			—			(1.4)

Foreign currency translation on noncontrolling interest	Foreign currency translation on noncontrolling interest	—		—		—		—		—			—			—			—			—			0.4			0.4		Foreign currency translation on noncontrolling interest	—		—		—		—		—			—			—			—			—			(1.1)			(1.1)
Balance, September 30, 2020		$	0.1	$	0.1	$	(6.5)	$	312.7	$	435.4		$	(88.2)		$	(6.9)		$	(77.3)		$	569.4		$	33.2		$	602.6
Balance, September 30, 2021																														Balance, September 30, 2021	$	0.1	$	0.1	$	(4.9)	$	315.0	$	357.3		$	(85.0)		$	(20.8)		$	(85.7)		$	476.1		$	34.1		$	510.2

See notes to unaudited condensed consolidated financial statements.

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HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


													Accumulated Other Comprehensive Income (Loss)																													Accumulated Other Comprehensive Income (Loss)
		Class A Common Stock		Class B Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Foreign Currency Translation Adjustment			Deferred Gain (Loss) on Cash Flow Hedging			Pension Adjustment			Total Stockholders' Equity			Noncontrolling Interests			Total Equity				Class A Common Stock		Class B Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Foreign Currency Translation Adjustment			Deferred Gain (Loss) on Cash Flow Hedging			Pension Adjustment			Total Stockholders' Equity			Noncontrolling Interests			Total Equity
		(In millions)																													(In millions)
Balance, December 31, 2018		$	0.1	$	0.1	$	(24.1)	$	321.5	$	407.3		$	(85.9)		$	(15.5)		$	(76.1)		$	527.4		$	32.1		$	559.5
Cumulative effect of change in accounting		—		—		—		—		5.3			—			0.9			(4.8)			1.4			—			1.4
Balance, December 31, 2019																														Balance, December 31, 2019	$	0.1	$	0.1	$	(15.9)	$	321.3	$	427.4		$	(92.9)		$	(18.5)		$	(77.3)		$	544.3		$	32.7		$	577.0

Stock-based compensation	Stock-based compensation	—		—		—		6.1		—			—			—			—			6.1			—			6.1		Stock-based compensation	—		—		—		0.9		—			—			—			—			0.9			—			0.9
Stock issued under stock compensation plans	Stock issued under stock compensation plans	—		—		8.0		(8.0)		—			—			—			—			0			—			0		Stock issued under stock compensation plans	—		—		9.5		(9.5)		—			—			—			—			—			—			—
Purchase of treasury stock	Purchase of treasury stock	—		—		(0.2)		—		—			—			—			—			(0.2)			—			(0.2)		Purchase of treasury stock	—		—		(0.1)		—		—			—			—			—			(0.1)			—			(0.1)
Net income	Net income	—		—		—		—		32.4			—			—			—			32.4			0.8			33.2		Net income	—		—		—		—		24.0			—			—			—			24.0			1.3			25.3
Cash dividends	Cash dividends	—		—		—		—		(15.7)			—			—			—			(15.7)			(0.2)			(15.9)		Cash dividends	—		—		—		—		(16.0)			—			—			—			(16.0)			(0.3)			(16.3)
Current period other comprehensive income (loss)	Current period other comprehensive income (loss)	—		—		—		—		—			(23.1)			(25.7)			0			(48.8)			—			(48.8)		Current period other comprehensive income (loss)	—		—		—		—		—			4.7			1.2			(2.8)			3.1			—			3.1
Reclassification adjustment to net income	Reclassification adjustment to net income	—		—		—		—		—			—			5.1			2.4			7.5			—			7.5		Reclassification adjustment to net income	—		—		—		—		—			—			10.4			2.8			13.2			—			13.2

Foreign currency translation on noncontrolling interest	Foreign currency translation on noncontrolling interest	—		—		—		—		—			—			—			—			—			(0.3)			(0.3)		Foreign currency translation on noncontrolling interest	—		—		—		—		—			—			—			—			—			(0.5)			(0.5)
Balance, September 30, 2019		$	0.1	$	0.1	$	(16.3)	$	319.6	$	429.3		$	(109.0)		$	(35.2)		$	(78.5)		$	510.1		$	32.4		$	542.5
Balance, September 30, 2020																														Balance, September 30, 2020	$	0.1	$	0.1	$	(6.5)	$	312.7	$	435.4		$	(88.2)		$	(6.9)		$	(77.3)		$	569.4		$	33.2		$	602.6

Balance, December 31, 2019		$	0.1	$	0.1	$	(15.9)	$	321.3	$	427.4		$	(92.9)		$	(18.5)		$	(77.3)		$	544.3		$	32.7		$	577.0
Balance, December 31, 2020																														Balance, December 31, 2020	$	0.1	$	0.1	$	(6.0)	$	312.6	$	443.2		$	(57.6)		$	12.5		$	(88.0)		$	616.9		$	34.2		$	651.1

Stock-based compensation	Stock-based compensation	—		—		—		0.9		—			—			—			—			0.9			—			0.9		Stock-based compensation	—		—		—		3.5		—			—			—			—			3.5			—			3.5
Stock issued under stock compensation plans	Stock issued under stock compensation plans	—		—		9.5		(9.5)		—			—			—			—			0			—			0		Stock issued under stock compensation plans	—		—		1.1		(1.1)		—			—			—			—			—			—			—
Purchase of treasury stock		—		—		(0.1)		—		—			—			—			—			(0.1)			—			(0.1)
Net income		—		—		—		—		24.0			—			—			—			24.0			1.3			25.3

Net income (loss)																														Net income (loss)	—		—		—		—		(69.7)			—			—			—			(69.7)			1.3			(68.4)
Cash dividends	Cash dividends	—		—		—		—		(16.0)			—			—			—			(16.0)			(0.3)			(16.3)		Cash dividends	—		—		—		—		(16.2)			—			—			—			(16.2)			(0.2)			(16.4)
Current period other comprehensive loss	Current period other comprehensive loss	—		—		—		—		—			4.7			1.2			(2.8)			3.1			—			3.1		Current period other comprehensive loss	—		—		—		—		—			(27.4)			(28.1)			(1.4)			(56.9)			—			(56.9)
Reclassification adjustment to net income		—		—		—		—		—			—			10.4			2.8			13.2			—			13.2
Reclassification adjustment to net income (loss)																														Reclassification adjustment to net income (loss)	—		—		—		—		—			—			(5.2)			3.7			(1.5)			—			(1.5)

Foreign currency translation on noncontrolling interest	Foreign currency translation on noncontrolling interest	—		—		—		—		—			—			—			—			—			(0.5)			(0.5)		Foreign currency translation on noncontrolling interest	—		—		—		—		—			—			—			—			—			(1.2)			(1.2)
Balance, September 30, 2020		$	0.1	$	0.1	$	(6.5)	$	312.7	$	435.4		$	(88.2)		$	(6.9)		$	(77.3)		$	569.4		$	33.2		$	602.6
Balance, September 30, 2021																														Balance, September 30, 2021	$	0.1	$	0.1	$	(4.9)	$	315.0	$	357.3		$	(85.0)		$	(20.8)		$	(85.7)		$	476.1		$	34.1		$	510.2

See notes to unaudited condensed consolidated financial statements.

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HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, ~~2020~~2021

(Tabular Amounts in Millions, Except Per Share and Percentage Data)

Note 1—Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Hyster-Yale Materials Handling, Inc., a Delaware corporation, and the accounts of Hyster-Yale's wholly owned domestic and international subsidiaries and majority-owned joint ventures (collectively, "Hyster-Yale" or the "Company"). All intercompany accounts and transactions among the consolidated companies are eliminated in consolidation.

The Company, through its wholly owned operating subsidiary, Hyster-Yale Group, Inc. ("HYG"), designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally primarily under the Hyster® and Yale® brand names, mainly to independent Hyster® and Yale® retail dealerships. Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, the Netherlands, the Philippines, Japan, Italy, ~~Japan, Vietnam~~Brazil and ~~Brazil.~~Vietnam.

The Company operates Bolzoni S.p.A. ("Bolzoni"). Bolzoni is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni®, Auramo® and Meyer® brand names. Bolzoni products are manufactured in the United States, Italy, China, Germany and Finland. Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of ~~lift-truck~~lift truck attachments and industrial material handling.

The Company operates Nuvera Fuel Cells, LLC ("Nuvera"). Nuvera is an alternative-power technology company focused on the design, manufacture and sale of hydrogen ~~fuel-cell~~fuel cell stacks and engines.

Investments in Sumitomo NACCO Forklift Co., Ltd. (“SN”), a 50%-owned joint venture, and HYG Financial Services, Inc. ("HYGFS"), a 20%-owned joint venture, are accounted for by the equity method. SN operates manufacturing facilities in Japan, the Philippines and Vietnam from which the Company purchases certain components, service parts and lift trucks. Sumitomo Heavy Industries, Ltd. ("Sumitomo") owns the remaining 50% interest in SN. Each stockholder of SN is entitled to appoint directors representing 50% of the vote of SN’s board of directors. All matters related to policies and programs of operation, manufacturing and sales activities require mutual agreement between the Company and Sumitomo prior to a vote of SN’s board of directors. HYGFS is a joint venture with Wells Fargo Financial Leasing, Inc. (“WF”), formed primarily for the purpose of providing financial services to independent Hyster® and Yale® lift truck dealers and National Account customers in the United States. National Account customers are large customers with centralized purchasing and geographically dispersed operations in multiple dealer territories. The Company’s percentage share of the net income or loss from these equity investments is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations.

During ~~the first nine months of~~ 2020, broad measures taken by governments, businesses and others across the globe to limit the spread of novel coronavirus ("COVID-19") adversely affected the Company. The resulting significant decline in economic activity also reduced the demand for the Company's products and limited the availability of components from certain suppliers. Production was significantly reduced or suspended at the Company's Chinese and European facilities for certain periods during the first and ~~early~~ second ~~quarter~~quarters of 2020. The Company also initiated several cost reduction measures designed to ease liquidity pressure. These cost containment actions included spending and travel restrictions, significant reductions in temporary personnel, furloughs, suspension of incentive compensation and profit sharing, benefit reductions and salary reductions. Effective January 1, 2021, the Company reinstated pre-pandemic salaries, benefits and incentive compensation programs. The cost containment actions associated with hiring, use of contract and temporary workers, travel and meetings, as well as other discretionary spending are continuing. These measures are expected to remain in place until market and economic uncertainty dissipates and results improve. In addition, the Company adjusted production levels in 2020 at its manufacturing plants to align more closely with the reduced levels of demand, and worked closely with suppliers to help ensure current needs ~~are~~were met while also ~~ensuring~~promoting continuity as the market ~~improves.~~improved. However, despite these efforts, during the third quarter and first nine months of 2021, the Company experienced further pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery, all of which have negatively impacted the Company.

These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by ~~U.S. generally accepted accounting principles~~GAAP for complete financial statements. In the opinion of

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management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of September 30, ~~2020~~2021 and the results of its operations and changes in equity for the three and nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, and the results of its cash flows for the nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019.~~

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2020.

The accompanying unaudited condensed consolidated balance sheet at December 31, ~~2019~~2020 has been derived from the audited financial statements at that date but does not include all of the information or notes required by ~~U.S. generally accepted accounting principles~~GAAP for complete financial statements.

Note 2—Recently Issued Accounting Standards

The following table provides a brief description of recent accounting standard updates ("ASU") adopted January 1, ~~2020. Unless otherwise noted, the~~2021. The adoption of these standards did not have a material effect on the Company's financial position, results of operations, cash flows or related disclosures.


Standard						Description
~~ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326)(Subsequent ASUs have been issued in 2018, 2019 and 2020 to update or clarify this guidance)~~						The guidance eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The guidance also requires additional disclosures in certain circumstances.
~~ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities~~						The guidance provides that indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.
~~ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606~~						~~The guidance clarifies the accounting for collaborative arrangements in conjunction with the adoption of "Revenue from Contracts with Customers (Topic 606)."~~
~~ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment~~						~~The guidance removes the second step of the two-step test for the measurement of goodwill impairment.~~
~~ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement~~						~~The guidance removes, modifies and adds certain disclosures relating to fair value measurements.~~
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract						The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting agreement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software.

~~The following table provides a brief description of ASUs not yet adopted:~~

~~Standard~~

~~Description~~

~~Required Date of Adoption~~

~~Effect on the financial statements or other significant matters~~

ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes

The guidance eliminates certain exceptions to the income tax guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill.

~~January 1, 2021~~

~~The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures.~~

ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815

The guidance clarifies certain interactions between the guidance to account for certain equity securities and investments under the equity method of accounting.

The following table provides a brief description of ASUs not yet adopted:

~~January 1, 2021~~Standard

~~The Company is currently evaluating~~Description

Required Date of Adoption

Effect on the ~~guidance and the effect on its~~ financial ~~position, results of operations, cash flows and related disclosures.~~statements or other significant matters

ASU 2020-04, Reference Rate Reform (Topic 848)

The guidance provides optional expedients and exceptions for applying ~~generally accepted accounting principles~~GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.

From the date of issuance through December 31, 2022

The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures.

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Note 3—Revenue

Revenue is recognized when obligations under the terms of a contract with the customer are satisfied, which occurs when control of the trucks, parts, or services are transferred to the customer. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The satisfaction of performance obligations under the terms of a revenue contract generally gives rise for the right to payment from the customer. The Company's standard payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Given the insignificant days between revenue recognition and receipt of payment, financing components do not exist between the Company and its customers. Taxes collected from customers are excluded from revenue. The estimated costs of product warranties are recognized as expense when the products are sold. See Note 1112 for further information on product warranties.

The majority of the Company's sales contracts contain performance obligations satisfied at a point in time when title and risks and rewards of ownership have transferred to the customer. Revenues for service contracts are recognized as the services are provided.

The Company also records variable consideration in the form of estimated reductions to revenues for customer programs and incentive offerings, including special pricing agreements, promotions and other volume-based incentives. Lift truck sales revenue is recorded net of estimated discounts. The estimated discount amount is based upon historical experience and trend analysis for each lift truck model. In addition to standard discounts, dealers can also request additional discounts that allow them to offer price concessions to customers. From time to time, the Company offers special incentives to increase market share or dealer stock and offers certain customers volume rebates if a specified cumulative level of purchases is obtained.

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For contracts with customers that include multiple performance obligations, judgment is required to determine whether performance obligations specified in these contracts are distinct and should be accounted for as separate revenue transactions for recognition purposes. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using expected cost plus margin. Impairment losses recognized on receivables or contract assets were not significant for the three and nine months ended September 30, ~~2020~~2021 and ~~2019, respectively.~~2020.

The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are reported on the line “Selling, general and administrative expenses” in the unaudited condensed consolidated statements of operations.

The Company pays for shipping and handling activities regardless of when control is transferred and has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, rather than a promised service. These costs are reported on the line “Cost of sales” in the unaudited condensed consolidated statements of operations.

The following table disaggregates revenue by category:

THREE MONTHS ENDED
SEPTEMBER 30, 2020
Lift truck business
Americas EMEA JAPIC Bolzoni Nuvera Elims Total
Dealer sales $ 189.2 $ 115.6 $ 40.0 $ 0 $ 0 $ 0 $ 344.8
Direct customer sales 113.3 0.4 0 0 0 0 113.7
Aftermarket sales 96.5 23.0 7.9 0 0 0 127.4
Other 27.9 4.8 0.1 63.3 0.7 (30.3) 66.5
Total Revenues $ 426.9 $ 143.8 $ 48.0 $ 63.3 $ 0.7 $ (30.3) $ 652.4


	THREE MONTHS ENDED
	SEPTEMBER 30, 2021
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	229.6	$	118.7	$	48.4	$	—	$	—	$	—	$	396.7
Direct customer sales	111.6		3.2		—		—		—		—		114.8
Aftermarket sales	124.2		25.8		7.4		—		—		—		157.4
Other	28.9		5.7		0.3		90.0		0.2		(45.8)		79.3
Total Revenues	$	494.3	$	153.4	$	56.1	$	90.0	$	0.2	$	(45.8)	$	748.2
	THREE MONTHS ENDED
	SEPTEMBER 30, 2020
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	189.2	$	115.6	$	40.0	$	—	$	—	$	—	$	344.8
Direct customer sales	113.3		0.4		—		—		—		—		113.7
Aftermarket sales	96.5		23.0		7.9		—		—		—		127.4
Other	27.9		4.8		0.1		63.3		0.7		(30.3)		66.5
Total Revenues	$	426.9	$	143.8	$	48.0	$	63.3	$	0.7	$	(30.3)	$	652.4
	NINE MONTHS ENDED
	SEPTEMBER 30, 2021
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	668.3	$	395.9	$	157.6	$	—	$	—	$	—	$	1,221.8
Direct customer sales	329.8		6.6		—		—		—		—		336.4
Aftermarket sales	347.3		79.5		23.3		—		—		—		450.1
Other	87.7		17.2		0.7		254.3		0.5		(122.7)		237.7
Total Revenues	$	1,433.1	$	499.2	$	181.6	$	254.3	$	0.5	$	(122.7)	$	2,246.0

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THREE MONTHS ENDED
SEPTEMBER 30, 2019
Lift truck business
Americas EMEA JAPIC Bolzoni Nuvera Elims Total
Dealer sales $ 256.4 $ 130.3 $ 47.9 $ 0 $ 0 $ 0 $ 434.6
Direct customer sales 114.1 2.5 0 0 0 0 116.6
Aftermarket sales 100.0 23.3 9.5 0 0 0 132.8
Other 35.3 5.6 0.4 75.8 2.4 (37.5) 82.0
Total Revenues $ 505.8 $ 161.7 $ 57.8 $ 75.8 $ 2.4 $ (37.5) $ 766.0

NINE MONTHS ENDED
SEPTEMBER 30, 2020
Lift truck business
Americas EMEA JAPIC Bolzoni Nuvera Elims Total
Dealer sales $ 686.9 $ 332.7 $ 117.2 $ 0 $ 0 $ 0 $ 1,136.8
Direct customer sales 369.0 6.4 0 0 0 0 375.4
Aftermarket sales 294.9 64.0 22.3 0 0 0 381.2
Other 81.6 12.9 1.1 215.4 2.8 (114.7) 199.1
Total Revenues $ 1,432.4 $ 416.0 $ 140.6 $ 215.4 $ 2.8 $ (114.7) $ 2,092.5


		NINE MONTHS ENDED															NINE MONTHS ENDED
		SEPTEMBER 30, 2019															SEPTEMBER 30, 2020
		Lift truck business															Lift truck business
		Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total			Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	Dealer sales	$	787.1	$	454.3	$	167.0	$	0	$	0	$	0	$	1,408.4	Dealer sales	$	686.9	$	332.7	$	117.2	$	—	$	—	$	—	$	1,136.8
Direct customer sales	Direct customer sales	392.5		10.3		—		0		0		0		402.8		Direct customer sales	369.0		6.4		—		—		—		—		375.4

Aftermarket sales	Aftermarket sales	298.9		72.5		26.1		0		0		0		397.5		Aftermarket sales	294.9		64.0		22.3		—		—		—		381.2
Other	Other	99.5		16.8		1.0		258.4		9.1		(136.5)		248.3		Other	81.6		12.9		1.1		215.4		2.8		(114.7)		199.1
Total Revenues	Total Revenues	$	1,578.0	$	553.9	$	194.1	$	258.4	$	9.1	$	(136.5)	$	2,457.0	Total Revenues	$	1,432.4	$	416.0	$	140.6	$	215.4	$	2.8	$	(114.7)	$	2,092.5

Dealer sales are recognized when the Company transfers control based on the shipping terms of the contract, which is generally when the truck is shipped from the manufacturing facility to the dealer. The majority of direct customer sales are to National Account customers. In these transactions, the Company transfers control and recognizes revenue when it delivers the product to the customer according to the terms of the contract. Aftermarket sales represent parts sales, extended warranty and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer. When customers are given the right to return eligible parts and accessories, the Company estimates the expected returns based on an analysis of historical experience. The Company adjusts estimated revenues at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. The Company recognizes revenue for extended warranty and maintenance agreements based on the standalone selling price over the life of the contract, which reflects the costs to perform under these contracts and corresponds with, and thereby depicts, the transfer of control to the customer. Bolzoni revenue from external customers is primarily the sale of attachments to customers. In these transactions, the Company transfers control and recognizes revenue according to the shipping terms of the contract. In the United States, Bolzoni also has revenue for sales of lift truck components to ~~HYG~~Lift Truck plants. Nuvera's revenues include development funding from third-party development agreements and the sale of ~~battery box replacement units,~~ fuel cell stacks and engines to third parties and to ~~HYG.~~Lift Truck. In all revenue transactions, the Company receives cash equal to the invoice price and amount of consideration received and the revenue recognized may vary with changes in marketing incentives. Intercompany revenues between Bolzoni, Nuvera and the lift truck business have been eliminated.

Deferred Revenue: The Company defers revenue for transactions that have not met the criteria for recognition at the time payment is collected, including extended warranties and maintenance contracts. In addition, for certain products, services and customer types, the Company collects payment prior to the transfer of control to the customer.

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	Deferred Revenue
Balance, December 31, ~~2019~~2020	$	~~73.3~~70.5
Customer deposits and billings	~~21.0~~38.0
Revenue recognized	~~(26.0)~~(32.0)
Foreign currency effect	(0.3)
Balance, September 30, ~~2020~~2021	$	~~68.3~~76.2

Note 4—Business Segments

The Company’s reportable segments for the lift truck business include the following three management units: the Americas, EMEA and JAPIC. Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and its corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia and Pacific regions, including China, as well as the equity earnings of SN operations. Certain amounts are allocated to these geographic management units and are included in the segment results presented below, including product development costs, corporate headquarter's expenses and certain information technology infrastructure costs. These allocations among geographic management units are determined by senior management and not directly incurred by the geographic operations. In addition, other costs are incurred directly by these geographic management units based upon the location of the manufacturing plant or sales units, including manufacturing variances, product liability, warranty and sales discounts, which may not be associated with the geographic management unit of the ultimate end user sales location where revenues and margins are reported. Therefore, the reported results of each segment for the lift truck business cannot be considered stand-alone entities as all segments are inter-related and integrate into a single global lift truck business.

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The Company reports the results of both Bolzoni and Nuvera as separate segments. Intercompany sales between Nuvera, Bolzoni and the lift truck business have been eliminated.

Financial information for each reportable segment is presented in the following table:

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2020 2019 2020 2019
Revenues from external customers
Americas $ 426.9 $ 505.8 $ 1,432.4 $ 1,578.0
EMEA 143.8 161.7 416.0 553.9
JAPIC 48.0 57.8 140.6 194.1
Lift truck business 618.7 725.3 1,989.0 2,326.0
Bolzoni 63.3 75.8 215.4 258.4
Nuvera 0.7 2.4 2.8 9.1
Eliminations (30.3) (37.5) (114.7) (136.5)
Total $ 652.4 $ 766.0 $ 2,092.5 $ 2,457.0
Gross profit (loss)
Americas $ 65.7 $ 90.3 $ 240.3 $ 261.8
EMEA 22.4 26.1 57.4 79.6
JAPIC 6.2 8.6 14.9 23.1
Lift truck business 94.3 125.0 312.6 364.5
Bolzoni 12.1 13.0 40.5 44.1
Nuvera (2.7) (3.1) (8.5) (7.6)
Eliminations (0.3) 0.1 (0.9) (0.4)
Total $ 103.4 $ 135.0 $ 343.7 $ 400.6

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		THREE MONTHS ENDED				NINE MONTHS ENDED					THREE MONTHS ENDED				NINE MONTHS ENDED
		SEPTEMBER 30				SEPTEMBER 30					SEPTEMBER 30				SEPTEMBER 30
											2021		2020		2021		2020
Revenues from external customers										Revenues from external customers
Americas										Americas	$	494.3	$	426.9	$	1,433.1	$	1,432.4
EMEA										EMEA	153.4		143.8		499.2		416.0
JAPIC										JAPIC	56.1		48.0		181.6		140.6
Lift truck business										Lift truck business	703.8		618.7		2,113.9		1,989.0
Bolzoni										Bolzoni	90.0		63.3		254.3		215.4
Nuvera										Nuvera	0.2		0.7		0.5		2.8
Eliminations										Eliminations	(45.8)		(30.3)		(122.7)		(114.7)
Total										Total	$	748.2	$	652.4	$	2,246.0	$	2,092.5
Gross profit (loss)										Gross profit (loss)
Americas										Americas	$	44.5	$	65.7	$	190.2	$	240.3
EMEA										EMEA	18.5		22.4		68.6		57.4
JAPIC										JAPIC	3.9		6.2		16.7		14.9
Lift truck business										Lift truck business	66.9		94.3		275.5		312.6
Bolzoni										Bolzoni	15.2		12.1		47.4		40.5
Nuvera										Nuvera	(16.5)		(2.7)		(22.3)		(8.5)
Eliminations										Eliminations	(0.5)		(0.3)		(0.7)		(0.9)
Total										Total	$	65.1	$	103.4	$	299.9	$	343.7
		2020		2019		2020		2019
Operating profit (loss)	Operating profit (loss)									Operating profit (loss)
Americas	Americas	$	16.1	$	29.5	$	77.9	$	71.0	Americas	$	(16.9)	$	16.1	$	11.3	$	77.9
EMEA	EMEA	3.3		1.0		(4.0)		5.7		EMEA	(0.9)		3.3		2.9		(4.0)
JAPIC	JAPIC	(3.2)		(2.5)		(12.7)		(8.8)		JAPIC	(3.5)		(3.2)		(7.9)		(12.7)
Lift truck business	Lift truck business	16.2		28.0		61.2		67.9		Lift truck business	(21.3)		16.2		6.3		61.2
Bolzoni	Bolzoni	0.1		0.7		2.3		4.2		Bolzoni	—		0.1		0.4		2.3
Nuvera	Nuvera	(8.7)		(9.3)		(26.4)		(25.9)		Nuvera	(32.5)		(8.7)		(51.3)		(26.4)
Eliminations	Eliminations	(0.3)		0.1		(0.9)		(0.4)		Eliminations	(0.5)		(0.3)		(0.7)		(0.9)
Total	Total	$	7.3	$	19.5	$	36.2	$	45.8	Total	$	(54.3)	$	7.3	$	(45.3)	$	36.2
Net income (loss) attributable to stockholders	Net income (loss) attributable to stockholders									Net income (loss) attributable to stockholders
Americas	Americas	$	10.7	$	20.8	$	52.0	$	50.6	Americas	$	(31.8)	$	10.7	$	(17.3)	$	52.0
EMEA	EMEA	3.7		1.0		(0.9)		5.0		EMEA	0.1		3.7		4.9		(0.9)
JAPIC	JAPIC	(2.8)		(2.3)		(8.5)		(6.2)		JAPIC	(3.1)		(2.8)		(4.9)		(8.5)
Lift truck business	Lift truck business	11.6		19.5		42.6		49.4		Lift truck business	(34.8)		11.6		(17.3)		42.6
Bolzoni	Bolzoni	0.1		0.7		2.2		2.6		Bolzoni	2.2		0.1		2.2		2.2
Nuvera	Nuvera	(6.1)		(5.8)		(18.6)		(17.9)		Nuvera	(38.1)		(6.1)		(48.5)		(18.6)
Eliminations	Eliminations	(0.5)		(1.6)		(2.2)		(1.7)		Eliminations	(6.5)		(0.5)		(6.1)		(2.2)
Total	Total	$	5.1	$	12.8	$	24.0	$	32.4	Total	$	(77.2)	$	5.1	$	(69.7)	$	24.0

Note 5—Income Taxes

The income tax provision includes U.S. federal, state and local, and foreign income taxes and is generally based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings or losses, taxing jurisdictions in which the earnings or losses will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards, ~~and~~carrybacks, capital loss

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carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or the tax effect of other unusual or nonrecurring transactions or adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual effective income tax rate. Additionally, the Company's interim effective income tax rate is computed and applied without regard to pre-tax losses where such losses are not expected to generate a current-year tax benefit.

The Tax Cuts and Jobs Act ("Tax Reform Act") includes anti-deferral and anti-base erosion provisions, the global intangible low-taxed income (“GILTI”) provisions and the base-erosion and anti-abuse tax (“BEAT”) provisions. The GILTI provisions require the Company to include non-U.S. earnings in excess of an allowable return on the Company’s non-U.S. ~~subsidiary’s~~subsidiaries' tangible assets in its U.S. income tax return. The Company has elected to account for GILTI tax in the period in which it is incurred. The BEAT provisions in the Tax Reform Act created a minimum tax where a lower tax rate is applied to ~~pre-tax~~taxable income determined without the benefit of certain base-erosion payments made to related non-U.S. corporations. The Company is taxed under this regime if such minimum tax exceeds the regular U.S. corporate income tax. The GILTI and BEAT provisions, when applicable, are included in permanent adjustments in the table below.

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A reconciliation of the consolidated federal statutory rate to the reported income tax rate is as follows:


	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30						SEPTEMBER 30
	2021			2020			2021			2020
Income (loss) before income taxes	$	(56.3)		$	6.4		$	(47.9)		$	27.8
Statutory taxes (21%)	$	(11.9)		$	1.3		$	(10.1)		$	5.8
Interim adjustment	(0.5)			3.4			—			0.8
Permanent adjustments:



State income taxes	(2.7)			0.3			(3.0)			0.3
Valuation allowance	16.5			(2.8)			17.0			1.0
Global intangible low-taxed income	0.9			(1.6)			1.8			1.1

Other	(0.7)			1.0			(1.9)			(0.2)
Permanent adjustments	14.0			(3.1)			13.9			2.2
Discrete items:

Valuation allowance	21.9			—			22.2			—
Tax controversy resolution	(1.2)			—			(4.4)			(4.6)
Provision to return adjustments	(2.1)			(1.1)			(2.1)			(1.1)



Other	0.3			0.2			1.0			(0.6)
Discrete items	18.9			(0.9)			16.7			(6.3)
Income tax provision	$	20.5		$	0.7		$	20.5		$	2.5
Reported income tax rate	(36.4)		%	10.9		%	(42.8)		%	9.0		%

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2020 2019 2020 2019
Income before income taxes $ 6.4 $ 18.0 $ 27.8 $ 44.0
Statutory taxes (21%) $ 1.3 $ 3.8 $ 5.8 $ 9.2
Interim adjustment 3.4 (0.6) 0.8 (0.2)
Permanent adjustments (3.1) 1.6 2.2 1.3
Discrete items (0.9) 0.1 (6.3) 0.5
Income tax provision $ 0.7 $ 4.9 $ 2.5 $ 10.8
Reported income tax rate 10.9 % 27.2 % 9.0 % 24.5 %
During the third quarter of 2021, the Company recognized a discrete tax charge of $21.9 million, primarily for the establishment of a valuation allowance against the beginning of the year balance of the Company’s U.S. deferred tax assets, excluding the portion of assets available to be carried back to the prior tax year. Based upon a review of the Company’s recent operations, including cumulative U.S. pretax losses, lack of available tax planning strategies and declining forecasts due to supply and logistics constraints, the evidence available no longer supports a more likely than not standard of realization for the Company’s U.S. deferred tax assets. Although the Company projects earnings over the longer term for its U.S. operations due to the cumulative losses, such longer-term forecasts are not sufficient evidence to support the future utilization of deferred tax assets. Additionally, $16.5 million of valuation allowance expense, primarily related to U.S. operations, was provided against deferred tax assets generated in the current year.

During the third quarter of 2021, the Company recognized a discrete tax benefit of $2.1 million for favorable domestic provision-to-return items mostly related to a reduction in BEAT tax and an increase in R&D credit. This benefit was partially offset by the associated charge to taxes on unremitted non-U.S. earnings for which no reinvestment plan has been identified of $0.4 million. Additionally, the Company recognized a discrete tax benefit of $2.6 million for the expiration of statute of limitations for applicable uncertain tax positions, partially offset by a tax charge of $1.4 million for additional tax controversy reserves. During the third quarter of 2020, the Company recognized a discrete tax benefit of ~~$1.0~~$1.1 million, related to domestic provision-to-return items, which was primarily related to BEAT.

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During the third quarter and first nine months of 2021, the Company recognized a discrete tax charge of $0.6 million and $2.0 million, respectively, for the tax impact of the favorable adjustment for social contribution taxes previously imposed on material purchases in Brazil. See Note 13 for additional information.

During the second quarter of 2021 and 2020, the Company recognized a discrete tax benefit of $3.3 million and $4.3 million, respectively, related to the expiration of the statute of limitations for uncertain tax positions related to acquisitions for which an offsetting pre-tax indemnity receivable was also recorded. The expense for the release of the indemnity receivable was recorded in pre-tax earnings on the line “Other, net” in the unaudited condensed consolidated statements of operations.

During the third quarter of 2019, the Company recognized a discrete tax charge of $0.8 million related to foreign law changes and settlements including the tax impact of the pretax Brazilian court settlement contingency. See Note 12 for additional information. This was mostly offset by discrete tax benefits recognized of $0.3 million and $0.4 million related to tax contingencies and return to provision items, respectively.

Note 6—Reclassifications from OCI

The following table summarizes reclassifications out of Accumulated Other Comprehensive Income ("OCI") as recorded in the unaudited condensed consolidated statements of operations:

Details about OCI Components Amount Reclassified from OCI Affected Line Item in the Statement Where Net Income Is Presented
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2020 2019 2020 2019
Gain (loss) on cash flow hedges:
Interest rate contracts $ 0.7 $ 0 $ 1.3 $ (0.3) Interest expense
Foreign exchange contracts (3.5) (2.3) (15.4) (6.7) Cost of sales
Total before tax (2.8) (2.3) (14.1) (7.0) Income before income taxes
Tax benefit 0.8 0.5 3.7 1.9 Income tax provision
Net of tax $ (2.0) $ (1.8) $ (10.4) $ (5.1) Net income
Amortization of defined benefit pension items:
Actuarial loss $ (1.1) $ (0.9) $ (3.4) $ (2.9) Other, net
Total before tax (1.1) (0.9) (3.4) (2.9) Income before income taxes
Tax benefit 0.1 0.1 0.6 0.5 Income tax provision
Net of tax $ (1.0) $ (0.8) $ (2.8) $ (2.4) Net income
Total reclassifications for the period $ (3.0) $ (2.6) $ (13.2) $ (7.5)


Details about OCI Components	Amount Reclassified from OCI								Affected Line Item in the Statement Where Net Income Is Presented
	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30				SEPTEMBER 30
	2021		2020		2021		2020
Gain (loss) on cash flow hedges:
Interest rate contracts	$	0.9	$	0.7	$	2.2	$	1.3	Interest expense

Foreign exchange contracts	1.3		(3.5)		2.8		(15.4)		Cost of sales
Total before tax	2.2		(2.8)		5.0		(14.1)		Income (loss) before income taxes
Tax benefit	0.7		0.8		0.2		3.7		Income tax provision
Net of tax	$	2.9	$	(2.0)	$	5.2	$	(10.4)	Net income
Amortization of defined benefit pension items:
Actuarial loss	$	(1.4)	$	(1.1)	$	(4.2)	$	(3.4)	Other, net


Total before tax	(1.4)		(1.1)		(4.2)		(3.4)		Income (loss) before income taxes
Tax (expense) benefit	(0.1)		0.1		0.5		0.6		Income tax provision
Net of tax	$	(1.5)	$	(1.0)	$	(3.7)	$	(2.8)	Net income
Total reclassifications for the period	$	1.4	$	(3.0)	$	1.5	$	(13.2)

Note 7—Current and Long-Term Financing

On May 28, 2021, the Company entered into an agreement for a $225.0 million term loan (the “Term Loan”) which expires on May 28, 2028. The Term Loan replaced the Company’s previous term loan facility, which was set to mature on May 30, 2023. The Term Loan requires quarterly principal payments on the last day of each March, June, September and December commencing September 30, 2021 in an amount equal to $562,500 and the final principal repayment is due in May 2028. The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan. At September 30, 2021, there was $224.4 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $5.5 million for discounts and unamortized deferred financing fees.

The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, material real property, fixtures and general intangibles consisting of intellectual property and a second priority lien on working capital assets of the Company, which includes, but is not limited to cash and cash equivalents, accounts receivable and inventory.

Borrowings under the Term Loan bear interest at a floating rate, which can be a base rate or Eurodollar rate, as defined in the Term Loan, plus an applicable margin. The applicable margin is 2.50% for base rate loans and 3.50% for Eurodollar loans. In addition, the Term Loan includes a Eurodollar rate floor of 0.50%. In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Term Loan. The Term Loan limits the payment of dividends and other restricted payments the Company may make up to $50.0 million in any fiscal year. Additional dividends may be paid if the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of the payment. The Term Loan also contains a provision

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requiring a premium to be paid in the event of a repricing of the borrowings under the Term Loan, whether by amendment or entry into new loans, within the six-month period following entry into the Term Loan. At September 30, 2021, the Company was in compliance with the covenants in the Term Loan.

During the second quarter of 2021, approximately $1.5 million of deferred financing fees relating to the old term loan were expensed, which was recorded on the line "Other, net" in the unaudited condensed consolidated statements of operations. In addition, approximately $5.8 million of additional deferred financing fees were incurred in connection with the Term Loan.

On June 24, 2021, the Company entered into an amended and restated agreement for a $300.0 million secured floating-rate revolving credit facility (as amended, the "Facility"). There were $73.6 million of borrowings outstanding under the Facility at September 30, 2021. The availability under the Facility at September 30, 2021 was $222.0 million, which reflects reductions of $4.4 million for letters of credit and other restrictions. The Facility consists of a domestic revolving credit facility in the initial amount of $210.0 million and a foreign revolving credit facility in the initial amount of $90.0 million. The facility expires June 24, 2026. The Facility replaced the Company's previous revolving credit facility, which was to expire April 28, 2022. The Facility can be increased up to $400.0 million over the term of the Facility in minimum increments of $10.0 million, subject to approval by the lenders. The obligations under the Facility are generally secured by a first priority lien on working capital assets of the Company, which includes but is not limited to cash and cash equivalents, accounts receivable and inventory, and a second priority lien on the present and future shares of capital stock, fixtures and general intangibles consisting of intellectual property.

Borrowings under the Facility bear interest at a floating rate, which can be a base rate, LIBOR or EURIBOR, as defined in the Facility, plus an applicable margin. The applicable margins are based on the total excess availability, as defined in the Facility, and range from 0.25% to 0.75% for U.S. base rate loans and 1.25% to 1.75% for LIBOR, EURIBOR and foreign base rate loans. In addition, the Facility requires the payment of a fee of 0.25% per annum on the unused commitment based on the average daily outstanding balance during the preceding month.

The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Facility. The Facility limits the payment of dividends and other restricted payments the Company may make unless certain total excess availability and/or fixed charge coverage ratio thresholds, each as set forth in the Facility, are satisfied. The Facility also requires the Company to achieve a minimum fixed charge coverage ratio when total excess availability is less than the greater of 10% of the total borrowing base, as defined in the Facility, and $20.0 million. At September 30, 2021, the Company was in compliance with the covenants in the Facility.

The Company incurred approximately $1.8 million of additional deferred financing fees in connection with the Facility.

The Company had other debt outstanding, excluding finance leases, of approximately $109.4 million at September 30, 2021. In addition to the excess availability under the Facility of $222.0 million, the Company had remaining availability of $23.9 million related to other non-U.S. revolving credit agreements.

Note 7—8—Financial Instruments and Derivative Financial Instruments

Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements and long-term debt, excluding capital leases, were determined using current rates offered for similar obligations taking into account company credit risk. This valuation methodology is Level 2 as defined in the fair value hierarchy. At September 30, 2021, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $400.8 million and $401.9 million, respectively. At December 31, 2020, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was ~~$264.2~~$257.2 million and ~~$268.8 million, respectively. At December 31, 2019, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $265.1 million and $266.0~~$260.5 million, respectively.

Derivative Financial Instruments

The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales.

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The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in cost of sales.

The Company periodically enters into forward foreign currency contracts that are designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that are designated and qualified as a hedge of a net investment in foreign currency, the gain or loss is reported in other comprehensive income as part of the cumulative translation adjustment to the extent it is effective. The Company utilizes the forward-rate method of assessing hedge effectiveness.

The Company periodically enters into cross-currency swaps, which hedge the variability of expected future cash flows that are attributable to foreign currency risk of certain intercompany loans. Changes in the fair value of cross-currency swaps that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in other (income) expense and interest expense.

~~The Company~~ uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and the associated variable rate financings are predominately based upon the ~~one month~~one-month LIBOR. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense.

Cash flows from hedging activities are reported in the unaudited condensed consolidated statements of cash flows with the same classification as the hedged item, generally as a component of cash flows from operations.

The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation.

The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges.

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Foreign Currency Derivatives: The Company held forward foreign currency exchange contracts with total notional amounts of ~~$870.7 million~~$1.3 billion at September 30, ~~2020,~~2021, primarily denominated in euros, Japanese yen, U.S. dollars, ~~Japanese yen,~~ Chinese renminbi, British pounds, Mexican pesos, ~~British pounds,~~ Swedish kroner, and Australian dollars. The Company held forward foreign currency exchange contracts with total notional amounts of ~~$960.9~~$840.5 million at December 31, ~~2019,~~2020, primarily denominated in euros, U.S. dollars, Japanese yen, British pounds, Chinese renminbi, Mexican pesos, ~~Australian dollars,~~ Swedish kroner ~~Brazilian real~~ and ~~Chinese renminbi.~~Australian dollars. The fair value of these contracts approximated a net liability of ~~$3.3~~$16.1 million and ~~$19.8~~a net asset of $23.5 million at September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 36 months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI. Based on market valuations at September 30, ~~2020, $4.1~~2021, $4.3 million of the amount of net deferred loss included in OCI at September 30, ~~2020~~2021 is expected to be reclassified as expense into the unaudited condensed consolidated ~~statement~~statements of operations over the next twelve months, as the transactions occur.

Interest Rate Derivatives: The Company holds certain contracts that hedge interest payments on its ~~$200.0~~$225.0 million Term Loan borrowings. In the second quarter of 2021, the Company entered into new interest rate swaps with a six-year term ~~loan (the "Term Loan") borrowings.~~ and $180.0 million notional amount. The previous interest rate swaps were amended and included in the new interest rate swaps. The fair value of the previous interest rate swaps will be amortized over the remaining original term. In addition, the Company holds certain contracts that hedge interest payments on Bolzoni's debt.

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The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at September 30, ~~2020~~2021 and December 31, ~~2019:~~2020:


Notional Amount	Notional Amount			Average Fixed Rate					Notional Amount			Average Fixed Rate
September 30		December 31		September 30		December 31
2020		2019		2020		2019		Term at September 30, 2020
SEPTEMBER 30									SEPTEMBER 30	DECEMBER 31		SEPTEMBER 30		DECEMBER 31
2021									2021	2020		2021		2020		Term at September 30, 2021
$	56.5	$	56.5	1.94	%	1.94	%	Extending to November 2022	180.0	$	—	1.68	%	—	%	Extending to May 2027
$	67.9	$	74.6	2.20	%	2.20	%	Extending to May 2023	16.0	$	19.0	(0.14)	%	(0.10)	%	Extending to September 2025
$									—	$	56.5	—	%	1.94	%	Terminated May 2021
$									—	$	65.7	—	%	2.20	%	Terminated May 2021

The fair value of all interest rate swap agreements was a net liability of ~~$5.5~~$4.9 million and ~~$2.1~~$4.9 million at September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI. Based on market valuations at September 30, ~~2020, $1.8~~2021, $3.7 million of the amount included in OCI as net deferred loss is expected to be reclassified as expense in the unaudited condensed consolidated ~~statement~~statements of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.

The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets:

Asset Derivatives Liability Derivatives
Balance Sheet Location SEPTEMBER 30
2020 DECEMBER 31
2019 Balance Sheet Location SEPTEMBER 30
2020 DECEMBER 31
2019
Derivatives designated as hedging instruments
Cash Flow Hedges
Interest rate swap agreements
Current Other current liabilities $ 0 $ 0 Other current liabilities $ 2.5 $ 0.7
Long-term Other long-term liabilities 0 0 Other long-term liabilities 3.0 1.4
Foreign currency exchange contracts
Current Prepaid expenses and other 3.7 3.1 Prepaid expenses and other 1.5 1.5
Other current liabilities 3.4 1.7 Other current liabilities 8.7 17.1
Long-term Other non-current assets 4.7 0 Other non-current assets 1.7 0
Other long-term liabilities 0 3.5 Other long-term liabilities 1.8 9.6
Total derivatives designated as hedging instruments $ 11.8 $ 8.3 $ 19.2 $ 30.3
Derivatives not designated as hedging instruments
Cash Flow Hedges
Foreign currency exchange contracts
Current Prepaid expenses and other 1.5 0.4 Prepaid expenses and other 1.9 0.2
Other current liabilities 0.4 2.3 Other current liabilities 1.4 2.4
Total derivatives not designated as hedging instruments $ 1.9 $ 2.7 $ 3.3 $ 2.6
Total derivatives $ 13.7 $ 11.0 $ 22.5 $ 32.9


	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	SEPTEMBER 30 2021		DECEMBER 31 2020		Balance Sheet Location	SEPTEMBER 30 2021		DECEMBER 31 2020
Derivatives designated as hedging instruments
Cash Flow Hedges
Interest rate swap agreements

Current	Other current liabilities	$	0.7	$	—	Other current liabilities	$	2.8	$	2.5

Long-term	Other long-term liabilities	0.9		—		Other long-term liabilities	3.7		2.4

Foreign currency exchange contracts
Current	Prepaid expenses and other	0.9		15.7		Prepaid expenses and other	0.4		2.9
	Other current liabilities	4.7		1.0		Other current liabilities	11.1		3.6
Long-term	Other non-current assets	—		11.3		Other non-current assets	—		0.1
	Other long-term liabilities	1.9		—		Other long-term liabilities	9.4		—



Total derivatives designated as hedging instruments		$	9.1	$	28.0		$	27.4	$	11.5
Derivatives not designated as hedging instruments
Cash Flow Hedges





Foreign currency exchange contracts
Current	Prepaid expenses and other	0.6		2.8		Prepaid expenses and other	0.1		0.9
	Other current liabilities	1.1		0.7		Other current liabilities	4.3		0.5




Total derivatives not designated as hedging instruments		$	1.7	$	3.5		$	4.4	$	1.4
Total derivatives		$	10.8	$	31.5		$	31.8	$	12.9

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The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty as recorded in the unaudited condensed consolidated balance sheets:


		Derivative Assets as of September 30, 2020								Derivative Liabilities as of September 30, 2020									Derivative Assets as of September 30, 2021								Derivative Liabilities as of September 30, 2021
		Gross Amounts of Recognized Assets		Gross Amounts Offset		Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset		Net Amounts Presented		Net Amount			Gross Amounts of Recognized Assets		Gross Amounts Offset		Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset		Net Amounts Presented		Net Amount
Cash Flow Hedges	Cash Flow Hedges																	Cash Flow Hedges
Interest rate swap agreements	Interest rate swap agreements	$	0	$	0	$	0	$	0	$	5.5	$	0	$	5.5	$	5.5	Interest rate swap agreements	$	—	$	—	$	—	$	—	$	4.9	$	—	$	4.9	$	4.9
Foreign currency exchange contracts	Foreign currency exchange contracts	4.8		(4.8)		0		0		8.1		(4.8)		3.3		3.3		Foreign currency exchange contracts	1.0		(1.0)		—		—		17.1		(1.0)		16.1		16.1
Total derivatives	Total derivatives	$	4.8	$	(4.8)	$	0	$	0	$	13.6	$	(4.8)	$	8.8	$	8.8	Total derivatives	$	1.0	$	(1.0)	$	—	$	—	$	22.0	$	(1.0)	$	21.0	$	21.0

		Derivative Assets as of December 31, 2019								Derivative Liabilities as of December 31, 2019									Derivative Assets as of December 31, 2020								Derivative Liabilities as of December 31, 2020
		Gross Amounts of Recognized Assets		Gross Amounts Offset		Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset		Net Amounts Presented		Net Amount			Gross Amounts of Recognized Assets		Gross Amounts Offset		Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset		Net Amounts Presented		Net Amount
Cash Flow Hedges	Cash Flow Hedges																	Cash Flow Hedges
Interest rate swap agreements	Interest rate swap agreements	$	0	$	0	$	0	$	0	$	2.1	$	0	$	2.1	$	2.1	Interest rate swap agreements	$	—	$	—	$	—	$	—	$	4.9	$	—	$	4.9	$	4.9
Foreign currency exchange contracts	Foreign currency exchange contracts	1.8		(1.8)		0		0		21.6		(1.8)		19.8		19.8		Foreign currency exchange contracts	25.9		(2.4)		23.5		23.5		2.4		(2.4)		—		—
Total derivatives	Total derivatives	$	1.8	$	(1.8)	$	0	$	0	$	23.7	$	(1.8)	$	21.9	$	21.9	Total derivatives	$	25.9	$	(2.4)	$	23.5	$	23.5	$	7.3	$	(2.4)	$	4.9	$	4.9

The following table summarizes the pre-tax impact of derivative instruments as recorded in the unaudited condensed consolidated statements of operations:

Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)
THREE MONTHS ENDED NINE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
Derivatives Designated as Hedging Instruments 2020 2019 2020 2019 2020 2019 2020 2019
Cash Flow Hedges
Interest rate swap agreements $ 1.2 $ (0.7) $ (2.2) $ (4.7) Interest expense $ 0.7 $ 0 $ 1.3 $ (0.3)
Foreign currency exchange contracts 20.1 (19.7) 4.2 (29.6) Cost of sales (3.5) (2.3) (15.4) (6.7)
Total $ 21.3 $ (20.4) $ 2.0 $ (34.3) $ (2.8) $ (2.3) $ (14.1) $ (7.0)
Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative 2020 2019 2020 2019
Cash Flow Hedges
Foreign currency exchange contracts Cost of sales $ (5.6) $ (1.9) $ (4.3) $ (4.3)
Total $ (5.6) $ (1.9) $ (4.3) $ (4.3)


	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)								Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)
	THREE MONTHS ENDED				NINE MONTHS ENDED					THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30									SEPTEMBER 30
Derivatives Designated as Hedging Instruments	2021		2020		2021		2020			2021		2020		2021		2020
Cash Flow Hedges
Interest rate swap agreements	$	2.1	$	1.2	$	2.8	$	(2.2)	Interest expense	$	0.9	$	0.7	$	2.2	$	1.3
Foreign currency exchange contracts	(16.8)		20.1		(31.1)		4.2		Cost of sales	1.3		(3.5)		2.8		(15.4)
Total	$	(14.7)	$	21.3	$	(28.3)	$	2.0		$	2.2	$	(2.8)	$	5.0	$	(14.1)




Derivatives Not Designated as Hedging Instruments									Location of Gain or (Loss) Recognized in Income on Derivative	2021		2020		2021		2020
Cash Flow Hedges

Foreign currency exchange contracts									Cost of sales	$	(2.7)	$	(5.6)	$	(8.9)	$	(4.3)
Total										$	(2.7)	$	(5.6)	$	(8.9)	$	(4.3)

Note 8—9—Retirement Benefit Plans

The Company maintains various defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. The Company's policy is to make contributions to fund these plans within the range allowed by applicable regulations. Plan assets consist primarily of publicly traded stocks and government and corporate bonds.

Pension benefits for employees covered under the Company's U.S. and U.K. plans are frozen. Only certain grandfathered employees in the Netherlands still earn retirement benefits under a defined benefit pension plan. All other eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans.

During the third quarter of 2021, the Company recognized a settlement loss of $0.8 million resulting from lump-sum distributions exceeding the total projected interest cost for the plan year its U.S. pension plan. The Company remeasured the plan as of September 30, 2021 using a discount rate of 2.49% compared to the December 31, 2020 discount rate of 2.09%. As a

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result of the remeasurement, the funded status of the plan decreased by $0.2 million and accumulated other comprehensive income increased by $1.4 million ($1.4 million net of tax).

During the third quarter of 2020, the Company recognized a settlement loss of $1.2 million resulting from lump-sum distributions exceeding the total projected interest cost for the plan year for ~~one of~~ its U.S. pension plans. The Company remeasured the plan as of September 30, 2020 using a discount rate of 2.27%, compared to the December 31, 2019 discount

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rate of 3.02%. As a result of the remeasurement, the funded status of the plan decreased by $2.7 million and accumulated other comprehensive income increased by $3.6 million ($2.8 million net of tax).

The Company presents the components of net benefit cost, other than service cost, in other (income) expense in the unaudited condensed consolidated statements of operations for its pension plans. Service cost for the Company's pension plans is reported in operating profit. The components of pension (income) expense are set forth below:


		THREE MONTHS ENDED				NINE MONTHS ENDED					THREE MONTHS ENDED				NINE MONTHS ENDED
		SEPTEMBER 30				SEPTEMBER 30					SEPTEMBER 30				SEPTEMBER 30
		2020		2019		2020		2019			2021		2020		2021		2020
U.S. Pension	U.S. Pension									U.S. Pension
Interest cost	Interest cost	$	0.5	$	0.6	$	1.5	$	1.9	Interest cost	$	0.4	$	0.5	$	1.1	$	1.5
Expected return on plan assets	Expected return on plan assets	(1.3)		(1.1)		(3.6)		(3.4)		Expected return on plan assets	(1.1)		(1.3)		(3.4)		(3.6)
Settlement loss	Settlement loss	1.2		0		1.2		0		Settlement loss	0.8		1.2		0.8		1.2
Amortization of actuarial loss	Amortization of actuarial loss	0.5		0.5		1.5		1.5		Amortization of actuarial loss	0.6		0.5		1.6		1.5

Total	Total	$	0.9	$	0	$	0.6	$	0	Total	$	0.7	$	0.9	$	0.1	$	0.6
Non-U.S. Pension	Non-U.S. Pension									Non-U.S. Pension
Service cost	Service cost	$	0.1	$	0	$	0.1	$	0.1	Service cost	$	0.1	$	0.1	$	0.2	$	0.1
Interest cost	Interest cost	0.8		1.1		2.3		3.1		Interest cost	0.6		0.8		1.9		2.3
Expected return on plan assets	Expected return on plan assets	(2.7)		(2.5)		(8.1)		(7.7)		Expected return on plan assets	(2.7)		(2.7)		(8.0)		(8.1)
Amortization of actuarial loss	Amortization of actuarial loss	0.6		0.4		1.9		1.4		Amortization of actuarial loss	0.8		0.6		2.6		1.9
Total	Total	$	(1.2)	$	(1.0)	$	(3.8)	$	(3.1)	Total	$	(1.2)	$	(1.2)	$	(3.3)	$	(3.8)

Note 9—10—Inventories

Inventories are summarized as follows:

SEPTEMBER 30
2020 DECEMBER 31
2019
Finished goods and service parts $ 268.6 $ 276.2
Work in process 23.3 22.1
Raw materials 248.3 310.5
Total manufactured inventories 540.2 608.8
LIFO reserve (49.9) (48.9)
Total inventory $ 490.3 $ 559.9


	SEPTEMBER 30 2021		DECEMBER 31 2020
Finished goods and service parts	$	336.2	$	269.0
Work in process	36.9		21.0
Raw materials	450.6		269.4
Total manufactured inventories	823.7		559.4
LIFO reserve	(65.7)		(50.0)
Total inventory	$	758.0	$	509.4

Inventories are stated at the lower of cost or market for last-in, first-out (“LIFO”) inventory or lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. At September 30, ~~2020~~2021 and December 31, ~~2019, 43%~~2020, 52% and ~~53%~~42%, respectively, of total inventories were determined using the LIFO method, which consists primarily of manufactured inventories, including service parts, for the lift truck business in the United States. The FIFO method is used with respect to all other inventories. An actual valuation of inventory under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management's estimates of expected year-end inventory levels and costs. Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation. See Note 11 for discussion of the inventory reduction to net realizable value at Nuvera.

~~Note 10—Goodwill and Intangible Assets~~

During the first nine months of 2020, broad measures taken by governments, businesses and others across the globe to limit the spread of COVID-19 adversely affected the Company. Production was significantly reduced or suspended at the Company's Chinese and European facilities for certain periods during the first and early second quarter of 2020. The significant decline in economic activity also reduced the demand for the Company's products from customers and limited the availability of components from suppliers. In addition, the Company’s stock price was volatile and declined significantly during the first quarter of 2020, consistent with broad trends in the global financial markets. These items, among others, were indicators of impairment and therefore, the Company performed interim goodwill and indefinite-lived intangible asset impairment tests as of March 31, 2020. The interim impairment analysis for goodwill and indefinite-lived intangible assets indicated the values of

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Note 11—Impairment and Other Charges

In connection with the preparation of the financial statements for the third quarter of 2021, the Company identified indicators of impairment primarily related to the unexpected level of significant, on-going pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery, all of which have negatively impacted the Company during the third quarter. This continued high level of disruption to the Company’s manufacturing and logistics operations are expected for the remainder of 2021 and into 2022. In addition, the effects of the COVID-19 pandemic, including border closures, halted Nuvera's progress on certain research and development agreements that were entered into prior to the start of the pandemic. In anticipation of fulfilling these agreements, Nuvera made significant investments in manufacturing and equipment expansion, as well as increased inventory levels. As a result, it was determined that carrying value of the Nuvera fixed assets exceeded the undiscounted cash flows from the assets and the fair value of Nuvera's fixed assets exceeded the carrying value by $10.0 million. The impairment charge for property, plant and equipment was recorded in "Selling, general and administrative expenses" in the unaudited condensed consolidated statements of operations. The estimated fair value of property, plant and equipment was determined using a cost approach, which is a Level 3 under the fair value hierarchy. Based on the Company’s analysis, all remaining long-lived assets with finite lives were not impaired as of ~~March 31, 2020.~~September 30, 2021. In addition, Nuvera reduced its inventory by $14.8 million to its estimated net realizable value during the third quarter of 2021, which is recorded in “Cost of Sales” in the unaudited condensed consolidated statements of operations.

As of September 30, 2021, the Company ~~performed an impairment analysis of its tangible, right-of-use~~had goodwill and ~~other~~indefinite-lived intangible assets ~~that indicated~~of $112.3 million and $17.4 million, respectively. The Company's goodwill primarily relates to the ~~values~~JAPIC and Bolzoni reporting units, which has goodwill of ~~these~~$54.8 million and $54.7 million, respectively. The Company evaluates the carrying amount of goodwill and indefinite-lived intangible assets ~~were not impaired~~for impairment annually as of ~~March 31, 2020. During~~May 1st and between annual evaluations if changes in circumstances or the occurrence of certain events indicate potential impairment. The Company completed the annual testing of impairment during the second quarter of ~~2020,~~2021 and the ~~annual testing of goodwill for impairment was conducted as of May 1, 2020. The~~ fair value of ~~each reporting unit~~the indefinite-lived intangible assets was in excess of its carrying value and thus, no impairment existed. ~~There were no further indicators~~As of the most recent annual impairment ~~during~~test, the Company estimated an excess of fair value over carrying value of approximately 10% for the JAPIC reporting unit goodwill and approximately 12% and 16% for the Bolzoni reporting unit goodwill and indefinite-lived intangibles, respectively.

As part of the ongoing goodwill qualitative analysis, the Company evaluates whether there are reasonably likely changes to management’s estimates that would have a material impact on the results of the goodwill impairment testing. During the third quarter of ~~2020.~~2021, the Company’s cash flow forecasts based upon management’s long-term view of markets used by senior management and the Board of Directors to evaluate operating performance did not result in impairment, as such long-term cash flows were not materially different than the cash flow projections used for the annual impairment valuation. As the Company continues to evaluate the long-term future cash flow impacts of the on-going pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery, additional interim impairment testing may be necessary in future quarters and future impairment charges are reasonably possible.

Note ~~11—~~12—Product Warranties

The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 hours. For certain series of lift trucks, the Company provides a standard warranty of one to two years or 2,000 or 4,000 hours. For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 hours. The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized.

In addition, the Company sells separately priced, extended warranty agreements for its lift trucks, which generally provide a warranty for an additional two to five years or up to 2,400 to 10,000 hours. The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company does business. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts.

The Company also maintains a quality enhancement program under which it provides for specifically identified field product improvements in its warranty obligation. Accruals under this program are determined based on estimates of the potential number of claims and the cost of those claims based on historical and anticipated costs.

The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Factors that affect the warranty liability include the number of units sold, historical and anticipated rates of warranty claims and the cost per claim.

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Changes in the Company's current and long-term warranty obligations, including deferred revenue on extended warranty contracts, are as follows:


	~~2020~~2021
Balance at December 31, ~~2019~~2020	$	~~65.2~~64.7
Current year warranty expense	~~21.9~~23.0
Change in estimate related to pre-existing warranties	~~0.9~~1.5
Payments made	~~(24.9)~~(21.1)
Foreign currency effect	~~0.2~~(0.9)
Balance at September 30, ~~2020~~2021	$	~~63.3~~67.2

Note ~~12—~~13—Contingencies

Various legal and regulatory proceedings and claims have been or may be asserted against the Company relating to the conduct of its businesses, including product liability, environmental and other claims. These proceedings and claims are incidental to the ordinary course of business. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. Although the ultimate disposition of these proceedings is not presently determinable, management believes, after consultation with its legal counsel, that the likelihood is remote that costs will be incurred materially in excess of accruals already recognized.

The Company previously filed ~~legal actions~~lawsuits in Brazil to recover certain social integration and social contribution taxes paid ~~over~~on gross sales, including the ICMS, ~~receipts,~~ which is a form of state value added tax. During the course of the lawsuit, many other taxpayers filed lawsuits with the same objective. Due to the increasing number of lawsuits filed, the Federal Supreme Court ("STF") declared that all ongoing legal cases should have their decision suspended until the STF decides on the matter, a decision that was expected to apply to all cases on this topic.

In 2019, the ~~Company’s Brazil~~Company's legal advisors in Brazil notified the Company that they received judicial notification that the ~~Superior Judicial Court rendered~~STF had issued a favorable decision onin the case granting the Company the right to recover, ~~through offset of~~by offsetting federal tax liabilities, amounts of overpayments collected by the government from 1999 to the present date. The judicial court decision is final and not subject to appeals. ~~Based on analysis performed to date, the~~The current estimate of the refund calculated on a gross basis is approximately ~~100~~110 million Brazilian reais, or approximately ~~$18~~$20 million as of September 30, ~~2020.~~2021.

19Despite the favorable decision of the STF, the Brazilian tax authorities sought clarification in the same main lawsuit on certain issues, including the value of these credits (i.e., the gross rate or the net credit value), and certain other issues that could affect the Brazilian taxpayers' rights with respect to these credits, all of which could materially impact the realization of the credits. During the second quarter of 2021, the STF ruled in favor of taxpayers that the refund should be calculated on a gross basis.

~~Table of Contents~~

The amount and ultimate timing of realization of these recoveries is dependent upon administrative approvals, generation of federal tax liabilities in Brazil eligible for offset and potential impacts of future legislative actions within Brazil, all of which are uncertain. ~~Based upon a probability weighted analysis, including a review~~The Company has negotiated the sale of ~~historical earnings and trends, forecasted earnings, the relevant expiration of carryforwards and the potential of selling the~~these credits at a ~~significant~~ discount ~~the Company determined~~and has revised the net realizable value of the credits isto approximately 842 million Brazilian reais, or ~~$1.4~~$7.8 million as of September 30, ~~2020.~~2021. In addition, the Company has generated additional tax credits since the favorable decision in 2019 of approximately 12 million Brazilian reais, or approximately $2.4 million. The Company ~~currently expects~~recorded approximately $2.2 million and $8.5 million of income related to ~~realize this amount within~~ the ~~next one to five years. Future legislative changes in Brazil, changes in the Company’s forecasted earnings or resolution of other uncertainties could impact the~~revised estimate of ~~the amount~~net realizable ~~for these tax credits.~~

~~The Brazilian tax authorities have sought clarification before the Brazilian Supreme Court of certain matters, including the amount~~value of these credits ~~(i.e.,~~in the ~~gross rate or net credit amount),~~three and ~~certain other matters that could affect~~nine months ended September 30, 2021, respectively, in “Cost of Sales” in the ~~rights~~unaudited condensed consolidated statements of Brazilian taxpayers regarding these credits, all of which would materially impact the realization of the credits. Based on the opinions of our tax and legal advisors, we have not accrued any amounts related to potential future litigation regarding these credits.operations.

Note ~~13—~~14—Guarantees

Under various financing arrangements for certain customers, including independent retail dealerships, the Company provides recourse or repurchase obligations such that it would be obligated in the event of default by the customer. Terms of the third-party financing arrangements for which the Company is providing recourse or repurchase obligations generally range from one to five years. Total amounts subject to recourse or repurchase obligations at September 30, ~~2020~~2021 and December 31, ~~2019~~2020 were ~~$147.0~~$115.5 million and ~~$179.7~~$119.7 million, respectively. As of September 30, ~~2020,~~2021, losses anticipated under the terms of the recourse or repurchase obligations were not significant and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements. The Company generally retains a security interest in the related assets financed such that, in the event the Company would become obligated under the terms of the recourse or

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repurchase obligations, the Company would take title to the assets financed. The fair value of collateral held at September 30, ~~2020~~2021 was approximately ~~$208.8~~$177.7 million based on Company estimates. The Company estimates the fair value of the collateral using information regarding the original sales price, the current age of the equipment and general market conditions that influence the value of both new and used lift trucks. The Company also regularly monitors the external credit ratings of the entities for which it has provided recourse or repurchase obligations. As of September 30, ~~2020,~~2021, the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities; however, there can be no assurance that the risk may not increase in the future. In addition, the Company has an agreement with WF to limit its exposure to losses at certain eligible dealers. Under this agreement, losses related to ~~$33.5~~$21.9 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5% of their original loan balance, or ~~$11.9~~$11.5 million as of September 30, ~~2020.~~2021. The ~~$33.5~~$21.9 million is included in the ~~$147.0~~$115.5 million of total amounts subject to recourse or repurchase obligations at September 30, ~~2020.~~2021.

Generally, the Company sells lift trucks through its independent dealer network or directly to customers. These dealers and customers may enter into a financing transaction with HYGFS or other unrelated third parties. HYGFS provides debt and lease financing to both dealers and customers. On occasion, the credit quality of a customer or credit concentration issues within WF may require the Company to provide recourse or repurchase obligations of the lift trucks purchased by customers and financed through HYGFS. At September 30, ~~2020,~~2021, approximately ~~$121.9~~$94.5 million of the Company's total recourse or repurchase obligations of ~~$147.0~~$115.5 million related to transactions with HYGFS. In connection with the joint venture agreement, the Company also provides a guarantee to WF for 20% of HYGFS’ debt with WF, such that the Company would become liable under the terms of HYGFS’ debt agreements with WF in the case of default by HYGFS. At September 30, ~~2020,~~2021, loans from WF to HYGFS totaled ~~$1.2~~$1.1 billion. Although the Company’s contractual guarantee was ~~$242.9~~$216.7 million, the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees ~~$121.9~~$94.5 million. Excluding the HYGFS receivables guaranteed by the Company from HYGFS’ loans to WF, the Company’s incremental obligation as a result of this guarantee to WF is ~~$222.9~~$199.9 million, which is secured by 20% of HYGFS' customer receivables and other secured assets of ~~$296.3~~$272.3 million. HYGFS has not defaulted under the terms of this debt financing in the past, and although there can be no assurances, the Company is not aware of any circumstances that would cause HYGFS to default in future periods.

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The following table includes the exposure amounts related to the Company's guarantees at September 30, ~~2020:~~

HYGFS Total
Total recourse or repurchase obligations $ 121.9 $ 147.0
Less: exposure limited for certain dealers 33.5 33.5
Plus: 7.5% of original loan balance 11.9 11.9
100.3 125.4
Incremental obligation related to guarantee to WF 222.9 222.9
Total exposure related to guarantees $ 323.2 $ 348.3
2021:


	HYGFS		Total
Total recourse or repurchase obligations	$	94.5	$	115.5
Less: exposure limited for certain dealers	21.9		21.9
Plus: 7.5% of original loan balance	11.5		11.5
	84.1		105.1
Incremental obligation related to guarantee to WF	199.9		199.9
Total exposure related to guarantees	$	284.0	$	305.0

Note ~~14—~~15—Equity and Debt Investments

The Company maintains an interest in one variable interest entity, HYGFS. HYGFS is a joint venture with WF formed primarily for the purpose of providing financial services to independent Hyster® and Yale® lift truck dealers and National Account customers in the United States and is included in the Americas segment. The Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of HYGFS. Therefore, the Company is not the primary beneficiary and uses the equity method to account for its 20% interest in HYGFS. The Company does not consider its variable interest in HYGFS to be significant.

The Company has a 50% ownership interest in SN, a limited liability company which was formed primarily to manufacture and distribute Sumitomo-branded lift trucks in Japan and export Hyster®- and Yale®-branded lift trucks and related components and service parts outside of Japan. The Company purchases products from SN under agreed-upon terms. The Company's ownership in SN is also accounted for using the equity method of accounting and is included in the JAPIC segment.

The Company's percentage share of the net income or loss from its equity investments in HYGFS and SN is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations. The Company's equity investments are included on the line “Investment in Unconsolidated Affiliates” in the unaudited condensed consolidated balance sheets.

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The Company's equity investments in unconsolidated affiliates recorded on the unaudited condensed consolidated balance sheets are as follows:

September 30, 2020 December 31, 2019
HYGFS $ 19.8 $ 22.8
SN 42.5 43.9
Bolzoni 0.4 0.3


	September 30, 2021		December 31, 2020

HYGFS	$	22.5	$	21.4
SN	44.1		44.6
Bolzoni	0.3		0.2

Dividends received from unconsolidated affiliates are summarized below:


	NINE MONTHS ENDED
	SEPTEMBER 30
	2021		2020

HYGFS	$	5.1	$	6.4
SN	0.4		0.9
	$	5.5	$	7.3

NINE MONTHS ENDED
SEPTEMBER 30
2020 2019
HYGFS $ 6.4 $ 4.1
SN 0.9 1.0
$ 7.3 $ 5.1

Summarized financial information for HYGFS and SN is as follows:

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2020 2019 2020 2019
Revenues $ 93.8 $ 103.8 $ 290.8 $ 323.8
Gross profit $ 34.1 $ 35.0 $ 98.0 $ 109.9
Income from continuing operations $ 12.3 $ 8.3 $ 23.2 $ 30.1
Net income $ 12.3 $ 8.3 $ 23.2 $ 30.1

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	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30				SEPTEMBER 30
	2021		2020		2021		2020
Revenues	$	105.4	$	93.8	$	315.3	$	290.8
Gross profit	$	40.2	$	34.1	$	118.3	$	98.0
Income from continuing operations	$	12.7	$	12.3	$	34.8	$	23.2
Net income	$	12.7	$	12.3	$	34.8	$	23.2

The Company has an equity investment in a third party valued using a quoted market price in an active market, or Level 1 in the fair value hierarchy. The Company's investment as of September 30, ~~2020~~2021 and December 31, ~~2019~~2020 was ~~$1.5~~$1.9 million and ~~$2.4~~$2.1 million, respectively. Any gain or loss on the investment is included on the line ~~"Other"~~"Other, net" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations as follows:

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2020 2019 2020 2019
Gain (loss) on equity investment $ 0.2 $ (0.7) $ (1.0) $ (1.1)


	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30				SEPTEMBER 30
	2021		2020		2021		2020
Gain (loss) on equity investment	$	—	$	0.2	$	—	$	(1.0)

~~The~~During the first quarter of 2021, the Company ~~has an approximately~~ ~~19% ownership interest through common and redeemable~~sold its investment in preferred shares ~~in a third party,~~of OneH2, Inc. for $15.7 million, including accrued dividends, and recognized a gain of $4.6 million. The gain on the sale of the investment is included on the line "Other, net" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations. The Company's investment was ~~$11.6~~$0.8 million and ~~$10.6~~$11.9 million as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively.

Note 16—Restructuring

During 2020, the Company performed an in-depth global review to help establish a more sustainable long-term cost structure. As a result, the Company plans to restructure its operations to optimize global commercial operations. The Company recognized a charge of approximately $4.4 million during the year ended December 31, 2020. These charges primarily related to severance, which was recorded on the line "Selling, general and administrative expenses" in the unaudited condensed consolidated statements of operations. During the third quarter of 2021, the Company recorded a provision of $0.3 million for additional severance. During the first nine months of 2021, the Company recorded a net benefit of $0.1 million as a result of changes in estimates of severance accruals. In addition, approximately $1.2 million and $2.5 million of severance payments were paid in the three and nine-months ended September 30, 2021, respectively. The remaining severance payments are expected to be paid through 2023.

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Following is the detail of the cash charges incurred by reporting segment:


	Total charges incurred		Total charges incurred through December 31, 2020		Total expense (benefit) recorded in the nine months ended September 30, 2021
Americas	$	0.7	$	1.0	$	(0.3)
EMEA	2.0		2.0		—
JAPIC	1.6		1.4		0.2
	$	4.3	$	4.4	$	(0.1)

Following is an analysis of the activity related to the liability:


	Americas		EMEA		`	JAPIC		Total
Balance at January 1, 2021	$	1.0	$	2.0		$	1.4	$	4.4
Provision	0.1		—			0.3		0.4
Changes in estimate	(0.4)		—			(0.1)		(0.5)
Payments	(0.7)		(0.7)			(1.1)		(2.5)
Translation	—		(0.1)			(0.1)		(0.2)
Balance at September 30, 2021	$	—	$	1.2		$	0.4	$	1.6

Note 17—Maximal Equity Transfer Agreement

As of September 30, 2021, the Company maintained a 75% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd. ("Hyster-Yale Maximal").

On May 26, 2021, the Company signed an Equity Transfer Agreement (the “ETA”) with Y-C Hongkong Holding Co., Limited (“HK Holding Co”), pursuant to which the Company will purchase 15% of the equity interest of Hyster-Yale Maximal from HK Holding Co for an aggregate purchase price of $25.2 million. After the closing under the ETA, which is anticipated to occur on June 1, 2022 (the “Closing Date"), 10% and 90% of the equity interest of Hyster-Yale Maximal will be owned by HK Holding Co and the Company, respectively.

Under the terms of the ETA, on the Closing Date and prior to each of June 1, 2023 and June 1, 2024, the Company will pay $8.4 million to HK Holding Co. The closing of the transaction is subject to customary closing conditions and required regulatory approvals. There is no guarantee the closing will occur either as provided in the ETA or at all. After the closing, the Company will have an option to purchase HK Holding Co's remaining interest in Hyster-Yale Maximal at any time prior to June 8, 2056 for $16.8 million. If this option is exercised, the Company will own 100% of the equity interest of Hyster-Yale Maximal.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

(Tabular Amounts in Millions, Except Per Share and Percentage Data)

Hyster-Yale Materials Handling, Inc. ("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company Hyster-Yale Group, Inc. ("HYG"), is a leading, globally integrated, full-line lift truck manufacturer. The Company offers a broad array of solutions aimed at meeting the specific materials handling needs of its customers, including attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as a variety of other power options for its lift trucks. The Company, through HYG, designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally primarily under the Hyster® and Yale® brand names, mainly to independent Hyster® and Yale® retail dealerships. The materials handling business historically has been cyclical because the rate of orders for lift trucks fluctuates depending on the general level of economic activity in the various industries and countries its customers serve. Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, the Netherlands, the Philippines, Japan, Italy, ~~Japan, Vietnam~~Brazil and ~~Brazil.~~Vietnam.

The Company operates Nuvera Fuel Cells, LLC ("Nuvera"). Nuvera is an alternative-power technology company focused on the design, manufacture and sale of hydrogen fuel cell stacks and engines.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Please refer to the discussion of Critical Accounting Policies and Estimates as disclosed on pages 1415 through 1617 in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. Critical Accounting Policies and Estimates have not materially changed since December 31, ~~2019.~~2020. See Note 2 to the unaudited condensed consolidated financial statements for a discussion of the new accounting pronouncements adopted on January 1, ~~2020.~~2021.

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FINANCIAL REVIEW

The results of operations for the Company were as follows:

THREE MONTHS ENDED Favorable / (Unfavorable) NINE MONTHS ENDED Favorable / (Unfavorable)
SEPTEMBER 30 SEPTEMBER 30
2020 2019 % Change 2020 2019 % Change
Lift truck unit shipments (in thousands)
Americas 12.0 14.6 (17.8) % 41.1 44.3 (7.2) %
EMEA 5.4 5.9 (8.5) % 15.1 21.5 (29.8) %
JAPIC 3.2 3.0 6.7 % 7.8 9.7 (19.6) %
20.6 23.5 (12.3) % 64.0 75.5 (15.2) %
Revenues
Americas $ 426.9 $ 505.8 (15.6) % $ 1,432.4 $ 1,578.0 (9.2) %
EMEA 143.8 161.7 (11.1) % 416.0 553.9 (24.9) %
JAPIC 48.0 57.8 (17.0) % 140.6 194.1 (27.6) %
Lift truck business 618.7 725.3 (14.7) % 1,989.0 2,326.0 (14.5) %
Bolzoni 63.3 75.8 (16.5) % 215.4 258.4 (16.6) %
Nuvera 0.7 2.4 (70.8) % 2.8 9.1 (69.2) %
Eliminations (30.3) (37.5) (19.2) % (114.7) (136.5) (16.0) %
$ 652.4 $ 766.0 (14.8) % $ 2,092.5 $ 2,457.0 (14.8) %
Gross profit (loss)
Americas $ 65.7 $ 90.3 (27.2) % $ 240.3 $ 261.8 (8.2) %
EMEA 22.4 26.1 (14.2) % 57.4 79.6 (27.9) %
JAPIC 6.2 8.6 (27.9) % 14.9 23.1 (35.5) %
Lift truck business 94.3 125.0 (24.6) % 312.6 364.5 (14.2) %
Bolzoni 12.1 13.0 (6.9) % 40.5 44.1 (8.2) %
Nuvera (2.7) (3.1) (12.9) % (8.5) (7.6) 11.8 %
Eliminations (0.3) 0.1 n.m. (0.9) (0.4) n.m.
$ 103.4 $ 135.0 (23.4) % $ 343.7 $ 400.6 (14.2) %
Selling, general and administrative expenses
Americas $ 49.6 $ 60.8 18.4 % $ 162.4 $ 190.8 14.9 %
EMEA 19.1 25.1 23.9 % 61.4 73.9 16.9 %
JAPIC 9.4 11.1 15.3 % 27.6 31.9 13.5 %
Lift truck business 78.1 97.0 19.5 % 251.4 296.6 15.2 %
Bolzoni 12.0 12.3 2.4 % 38.2 39.9 4.3 %
Nuvera 6.0 6.2 3.2 % 17.9 18.3 2.2 %
$ 96.1 $ 115.5 16.8 % $ 307.5 $ 354.8 13.3 %
Operating profit (loss)
Americas $ 16.1 $ 29.5 (45.4) % $ 77.9 $ 71.0 9.7 %
EMEA 3.3 1.0 230.0 % (4.0) 5.7 (170.2) %
JAPIC (3.2) (2.5) (28.0) % (12.7) (8.8) (44.3) %
Lift truck business 16.2 28.0 (42.1) % 61.2 67.9 (9.9) %
Bolzoni 0.1 0.7 (85.7) % 2.3 4.2 (45.2) %
Nuvera (8.7) (9.3) 6.5 % (26.4) (25.9) (1.9) %
Eliminations (0.3) 0.1 n.m. (0.9) (0.4) n.m.
$ 7.3 $ 19.5 (62.6) % $ 36.2 $ 45.8 (21.0) %
Interest expense $ 3.1 $ 5.3 41.5 % $ 10.7 $ 14.9 28.2 %
Other income $ (2.2) $ (3.8) n.m. $ (2.3) $ (13.1) (82.4) %


	THREE MONTHS ENDED				Favorable / (Unfavorable)		NINE MONTHS ENDED				Favorable / (Unfavorable)
	SEPTEMBER 30						SEPTEMBER 30
	2021		2020		% Change		2021		2020		% Change
Lift truck unit shipments (in thousands)
Americas	13.7		12.0		14.2	%	39.0		41.1		(5.1)	%
EMEA	6.2		5.4		14.8	%	18.6		15.1		23.2	%
JAPIC	3.3		3.2		3.1	%	10.6		7.8		35.9	%
	23.2		20.6		12.6	%	68.2		64.0		6.6	%
Revenues
Americas	$	494.3	$	426.9	15.8	%	$	1,433.1	$	1,432.4	—	%
EMEA	153.4		143.8		6.7	%	499.2		416.0		20.0	%
JAPIC	56.1		48.0		16.9	%	181.6		140.6		29.2	%
Lift truck business	703.8		618.7		13.8	%	2,113.9		1,989.0		6.3	%
Bolzoni	90.0		63.3		42.2	%	254.3		215.4		18.1	%
Nuvera	0.2		0.7		(71.4)	%	0.5		2.8		(82.1)	%
Eliminations	(45.8)		(30.3)		51.2	%	(122.7)		(114.7)		7.0	%
	$	748.2	$	652.4	14.7	%	$	2,246.0	$	2,092.5	7.3	%
Gross profit (loss)
Americas	$	44.5	$	65.7	(32.3)	%	$	190.2	$	240.3	(20.8)	%
EMEA	18.5		22.4		(17.4)	%	68.6		57.4		19.5	%
JAPIC	3.9		6.2		(37.1)	%	16.7		14.9		12.1	%
Lift truck business	66.9		94.3		(29.1)	%	275.5		312.6		(11.9)	%
Bolzoni	15.2		12.1		25.6	%	47.4		40.5		17.0	%
Nuvera	(16.5)		(2.7)		(511.1)	%	(22.3)		(8.5)		(162.4)	%
Eliminations	(0.5)		(0.3)		n.m.		(0.7)		(0.9)		n.m.
	$	65.1	$	103.4	(37.0)	%	$	299.9	$	343.7	(12.7)	%
Selling, general and administrative expenses
Americas	$	61.4	$	49.6	(23.8)	%	$	178.9	$	162.4	(10.2)	%
EMEA	19.4		19.1		(1.6)	%	65.7		61.4		(7.0)	%
JAPIC	7.4		9.4		21.3	%	24.6		27.6		10.9	%
Lift truck business	88.2		78.1		(12.9)	%	269.2		251.4		(7.1)	%
Bolzoni	15.2		12.0		(26.7)	%	47.0		38.2		(23.0)	%
Nuvera	16.0		6.0		(166.7)	%	29.0		17.9		(62.0)	%

	$	119.4	$	96.1	(24.2)	%	$	345.2	$	307.5	(12.3)	%
Operating profit (loss)
Americas	$	(16.9)	$	16.1	(205.0)	%	$	11.3	$	77.9	(85.5)	%
EMEA	(0.9)		3.3		n.m.		2.9		(4.0)		(172.5)	%
JAPIC	(3.5)		(3.2)		(9.4)	%	(7.9)		(12.7)		37.8	%
Lift truck business	(21.3)		16.2		(231.5)	%	6.3		61.2		(89.7)	%
Bolzoni	—		0.1		(100.0)	%	0.4		2.3		(82.6)	%
Nuvera	(32.5)		(8.7)		(273.6)	%	(51.3)		(26.4)		(94.3)	%
Eliminations	(0.5)		(0.3)		n.m.		(0.7)		(0.9)		n.m.
	$	(54.3)	$	7.3	n.m.		$	(45.3)	$	36.2	(225.1)	%
Interest expense	$	4.1	$	3.1	(32.3)	%	$	10.7	$	10.7	—	%
Other (income) expense	$	(2.1)	$	(2.2)	(4.5)	%	$	(8.1)	$	(2.3)	n.m.

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		THREE MONTHS ENDED						Favorable / (Unfavorable)			NINE MONTHS ENDED									Favorable / (Unfavorable)			THREE MONTHS ENDED							Favorable / (Unfavorable)			NINE MONTHS ENDED								Favorable / (Unfavorable)
		SEPTEMBER 30								SEPTEMBER 30									SEPTEMBER 30										SEPTEMBER 30
		2020			2019					% Change				2020				2019						% Change		2021						2020				% Change				2021			2020	% Change
Net income (loss) attributable to stockholders	Net income (loss) attributable to stockholders																					Net income (loss) attributable to stockholders
Americas	Americas	$	10.7		$	20.8		(48.6)	%		$	52.0			$	50.6				2.8	%	Americas	$	(31.8)		$	10.7			n.m.			$	(17.3)			$	52.0			(133.3)	%
EMEA	EMEA	3.7			1.0			270.0	%		(0.9)				5.0					(118.0)	%	EMEA	0.1			3.7				n.m.			4.9				(0.9)				n.m.
JAPIC	JAPIC	(2.8)			(2.3)			(21.7)	%		(8.5)				(6.2)					(37.1)	%	JAPIC	(3.1)			(2.8)				(10.7)	%		(4.9)				(8.5)				42.4	%
Lift truck business	Lift truck business	11.6			19.5			(40.5)	%		42.6				49.4					(13.8)	%	Lift truck business	(34.8)			11.6				n.m.			(17.3)				42.6				(140.6)	%
Bolzoni	Bolzoni	0.1			0.7			n.m.			2.2				2.6					(15.4)	%	Bolzoni	2.2			0.1				n.m.			2.2				2.2				—	%
Nuvera	Nuvera	(6.1)			(5.8)			(5.2)	%		(18.6)				(17.9)					(3.9)	%	Nuvera	(38.1)			(6.1)				n.m.			(48.5)				(18.6)				(160.8)	%
Eliminations	Eliminations	(0.5)			(1.6)			n.m.			(2.2)				(1.7)					n.m.		Eliminations	(6.5)			(0.5)				n.m.			(6.1)				(2.2)				n.m.
		$	5.1		$	12.8		(60.2)	%		$	24.0			$	32.4				(25.9)	%		$	(77.2)		$	5.1			n.m			$	(69.7)			$	24.0			n.m.
Diluted earnings per share	Diluted earnings per share	$	0.30		$	0.76		(60.5)	%		$	1.43			$	1.94				(26.3)	%	Diluted earnings per share	$	(4.59)		$	0.30			n.m.			$	(4.15)			$	1.43			n.m.
Reported income tax rate	Reported income tax rate	10.9		%	27.2		%				9.0		%		24.5		%					Reported income tax rate	(36.4)		%	10.9		%					(42.8)		%		9.0		%
n.m. - not meaningful	n.m. - not meaningful																					n.m. - not meaningful

Following is the detail of the Company's unit shipments, bookings and backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks, reflected in thousands of units. As of September 30, ~~2020,~~2021, substantially all of the Company's backlog is expected to be sold within the next twelve months.


	THREE MONTHS ENDED		NINE MONTHS ENDED
	SEPTEMBER 30		SEPTEMBER 30
	2021	2020	2021	2020
Unit backlog, beginning of period	84.9	31.5	40.6	41.2
Unit shipments	(23.2)	(20.6)	(68.2)	(64.0)
Unit bookings	37.1	22.7	126.4	56.4
Unit backlog, end of period	98.8	33.6	98.8	33.6

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2020 2019 2020 2019
Unit backlog, beginning of period 31.5 44.1 41.2 43.9
Unit shipments (20.6) (23.5) (64.0) (75.5)
Unit bookings 22.7 22.8 56.4 75.0
Unit backlog, end of period 33.6 43.4 33.6 43.4

The following is the detail of the approximate sales value of the Company's lift truck unit bookings and backlog, reflected in millions of dollars. The dollar value of bookings and backlog is calculated using the current unit bookings and backlog and the forecasted average sales price per unit.

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2020 2019 2020 2019
Bookings, approximate sales value $ 545 $ 540 $ 1,360 $ 1,690
Backlog, approximate sales value $ 910 $ 1,130 $ 910 $ 1,130


	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30				SEPTEMBER 30
	2021		2020		2021		2020
Bookings, approximate sales value	$	910	$	545	$	2,950	$	1,360
Backlog, approximate sales value	$	2,450	$	910	$	2,450	$	910

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Third Quarter of ~~2020~~2021 Compared with Third Quarter of ~~2019~~2020

The following table identifies the components of change in revenues for the third quarter of ~~2020~~2021 compared with the third quarter of ~~2019:~~

Revenues
2019 $ 766.0
Increase (decrease) in 2020 from:
Unit volume and product mix (98.6)
Bolzoni revenues (12.5)
Parts (7.1)
Nuvera revenues (1.7)
Price 4.5
Foreign currency 1.5
Other (including eliminations) 0.3
2020 $ 652.4
2020:


	Revenues
2020	$	652.4
Increase (decrease) in 2021 from:
Unit volume and product mix	41.2
Bolzoni revenues	26.7
Parts	17.2
Other	14.5
Foreign currency	6.7
Price	5.5
Eliminations	(15.5)
Nuvera revenues	(0.5)
2021	$	748.2

Revenues ~~decreased 14.8%~~increased 14.7% to $748.2 million in the third quarter of 2021 from $652.4 million in the third quarter of ~~2020 from $766.0 million in the third quarter of 2019, mainly~~2020. The increase was primarily due to ~~lower~~higher unit and parts ~~volumes~~volume in ~~all geographic segments of~~ the lift truck business and Bolzoni, ~~primarily due~~in addition to improved fleet services revenue, pricing and favorable currency movements from the ~~COVID-19 pandemic and the resulting significant decline in economic activity. The decrease in revenue was partially offset by improved pricing in the Americas and EMEA.~~translation of sales into U.S. dollars.

~~Nuvera's~~America's revenues ~~decreased primarily due to reduced third-party fuel cell development services~~increased in the third quarter of ~~2020~~2021 compared towith the third quarter of ~~2019.~~2020, primarily from higher unit and parts volume and higher fleet service revenue.

EMEA's revenues increased mainly due to higher unit and parts volume and favorable foreign currency movements of $3.7 million from the translation of sales into U.S. dollars.

JAPIC's revenues increased primarily as a result of improved unit volumes and favorable foreign currency movements of $1.9 million.

Bolzoni's revenues increased mainly due to higher unit volume, partially offset by a shift in sales to lower-priced products.

The following table identifies the components of change in operating profit for the third quarter of ~~2020~~2021 compared with the third quarter of ~~2019:~~

Operating Profit
2019 $ 19.5
Increase (decrease) in 2020 from:
Lift truck gross profit (31.1)
Bolzoni operations (0.6)
Nuvera operations 0.6
Lift truck selling, general and administrative expenses 18.9
2020 $ 7.3
2020:


	Operating Profit (Loss)
2020	$	7.3


Decrease in 2021 from:
Lift truck gross profit	(27.6)
Nuvera operations	(23.8)
Lift truck selling, general and administrative expenses	(10.1)
Bolzoni operations	(0.1)
2021	$	(54.3)

The Company recognized an operating loss of $54.3 million in the third quarter of 2021 compared with operating profit of $7.3 million in the third quarter of ~~2020 compared with $19.5~~2020. The change in operating profit (loss) was primarily due to lower gross profit and unfavorable selling, general and administrative expenses in the lift truck business and a larger operating loss at Nuvera. The decrease in gross profit was primarily due to significant material and freight cost inflation due to supply chain and logistics constraints of $37.2 million, mainly in the Americas. The increase in selling, general and administrative expenses in the lift truck business was primarily due to the reinstatement of pre-pandemic employee-related salaries and benefits. In addition, the third quarter of 2021 included $24.7 million of inventory and property, plant and equipment adjustments at Nuvera. See Note 11 for further discussion of Nuvera's adjustments.

Americas recognized an operating loss of $16.9 million in the third quarter of ~~2019.~~2021 compared with an operating profit of $16.1 million the third quarter of 2020 due to a decrease in gross profit and an increase in selling, general and administrative

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expenses. Gross profit declined primarily due to material cost inflation and increased freight costs of $32.8 million, net of price increases of $4.5 million, a shift in sales mix to lower-margin lift trucks and higher manufacturing costs resulting from inefficiencies associated with component shortages. The decrease in gross profit was partly offset by the realization of higher margins on parts sales and a $2.2 million favorable adjustment for social contribution taxes previously imposed on material purchases in Brazil. See Note 13 for further discussion. Selling, general and administrative expenses increased mainly as result of the reinstatement of pre-pandemic salaries and benefits that were suspended in 2020.

EMEA had an operating loss of $0.9 million in the third quarter of 2021 compared to an operating profit of $3.3 million in the third quarter of 2020. The decrease in gross profit was ~~mainly~~primarily the result of increases in material and freight costs, higher manufacturing costs resulting from inefficiencies associated with component shortages and the absence of $1.5 million of government subsidies received in the third quarter of 2020.

JAPIC's operating loss increased to $3.5 million in the third quarter of 2021 from $3.2 million in the third quarter of 2020 primarily due to lower gross profit ~~primarily~~ from ~~lower unit~~material cost inflation and parts volume due to the COVID-19 pandemic and the resulting significant decline in economic activity in all geographic lift truck segments and Bolzoni. The third quarter of 2019 also included $8.7 million of favorable retroactive tariff exclusion adjustments from suppliers for certain components imported from China. These items wereunfavorable manufacturing variances, partially offset by increased volume and favorable pricing in all geographic lift truck segments. The decline in gross profit was somewhat offset by lower selling, general and administrative expenses at all locations as the Company implemented cost containment actions to mitigate the impact of the COVID-19 pandemic as well as $1.6 million of government subsidies in EMEA.foreign currency movements.

Nuvera's operating loss ~~decreased modestly as a result~~increased to $32.5 million in the third quarter of ~~smaller inventory adjustments recognized~~2021 compared with $8.7 million in the third quarter of 2020 ~~compared to~~as result of charges of $24.8 million recorded in the third quarter of ~~2019, as well as the favorable effect of cost containment actions.~~2021 on Nuvera's inventory and property, plant and equipment. See Note 11 for further discussion these charges at Nuvera.

The Company recognized net loss attributable to stockholders of $77.2 million in the third quarter of 2021 compared with net income attributable to stockholders of $5.1 million in the third quarter of ~~2020 compared with $12.8 million in the third quarter of 2019.~~2020. The decrease was primarily the result of lower operating profit and ~~lower equity earnings~~a valuation allowance of ~~unconsolidated subsidiaries. In addition, the Company recognized a settlement loss of $1.2~~$38.4 million in the third quarter of 2020 for its U.S. pension plan. These items were partially offset by lower interest expense, favorable mark-to-market adjustments on an equity investment in a third-party and a lower reported incomeprovided against deferred tax ~~rate.~~assets. See Note 5 for further discussion of the Company's income tax provision.

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First Nine Months of ~~2020~~2021 Compared with First Nine Months of ~~2019~~2020

The following table identifies the components of change in revenues for the first nine months of ~~2020~~2021 compared with the first nine months of ~~2019:~~

Revenues
2019 $ 2,457.0
Increase (decrease) in 2019 from:
Unit volume and product mix (310.5)
Bolzoni revenues (43.0)
Parts (21.8)
Foreign currency (12.8)
Nuvera revenues (6.3)
Price 24.0
Other (including eliminations) 5.9
2020 $ 2,092.5
2020:


	Revenues
2020	$	2,092.5
Increase (decrease) in 2021 from:
Foreign currency	43.1
Parts	42.3
Bolzoni revenues	38.9
Other	30.6
Price	10.2
Eliminations	(8.0)
Nuvera revenues	(2.3)
Unit volume and product mix	(1.3)









2021	$	2,246.0

Revenues ~~decreased 14.8%~~increased 7.3% to $2,246.0 million in the first nine months of 2021 from $2,092.5 million in the first nine months of ~~2020 from $2,457.0 million in the first nine months of 2019.~~2020. The ~~decrease~~increase was mainly due to lower unit and parts volumes in all geographic segments of the lift truck business and Bolzoni, primarily due to the COVID-19 pandemic and the resulting significant decline in economic activity. In addition, unfavorablefavorable currency movements from the translation of sales into U.S. dollars, ~~was $10.3 million~~primarily in EMEA, higher parts volumes in the Americas ~~$2.0 million~~and EMEA, higher volume at Bolzoni and improved fleet service revenue in JAPIC, $0.5 million in EMEA and $0.4 million at Bolzoni. The decrease in revenue was partially offset by higher prices in all lift truck geographic segments implemented during 2019 to offset material cost increases and tariffs.the Americas.

~~Nuvera's~~America's revenues ~~decreased primarily due to reduced third-party fuel cell development services~~increased slightly in the first nine months of ~~2020~~2021 compared towith the first nine months of ~~2019.~~2020, primarily from favorable aftermarket sales, including part sales, driven by an increase in customer demand as well as favorable pricing of lift trucks. The increase was partially offset by lower unit volumes due to global supply chain constraints and component shortages.

EMEA's revenues increased mainly due to favorable foreign currency movements of $36.5 million from the translation of sales into U.S. dollars and higher unit and parts volume resulting from increased customer demand.

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JAPIC's revenues increased primarily as a result of improved unit volumes and favorable foreign currency movements of $9.9 million, partially offset by a shift in sales to lower-priced lift trucks.

Bolzoni's revenues increased mainly due to higher unit volume.

The following table identifies the components of change in operating profit for the first nine months of ~~2020~~2021 compared with the first nine months of ~~2019:~~

Operating Profit
2019 $ 45.8
Increase (decrease) in 2020 from:
Lift truck selling, general and administrative expenses (52.4)
Bolzoni operations (1.9)
Nuvera operations (0.5)
Lift truck gross profit 45.2
2020 $ 36.2
2020:


	Operating Profit (Loss)
2020	$	36.2


Decrease in 2021 from:

Lift truck gross profit	(36.9)
Nuvera operations	(24.9)
Lift truck selling, general and administrative expenses	(17.8)
Bolzoni operations	(1.9)


2021	$	(45.3)

The Company recognized operating loss of $45.3 million in the first nine months of 2021 compared with operating profit of $36.2 million in the first nine months of 2020. The decrease in operating profit was primarily due to lower gross profit and unfavorable selling, general and administrative expenses in the lift truck business and a higher operating loss at Nuvera. Gross profit declined mainly due to material cost inflation and increased freight costs of $50.6 million, a shift in sales to lower-margin lift trucks, and higher manufacturing costs resulting from inefficiencies associated with component shortages. The decrease in gross profit was partially offset by favorable parts volume in the Americas and EMEA, favorable foreign currency movements of $13.6 million and a favorable adjustment of $8.5 million for social contribution taxes previously imposed on material purchases in Brazil. In addition, the first nine months of 2020 ~~compared with $45.8~~included $6.5 million of government subsidies at EMEA and Bolzoni. Selling, general and administrative expenses increased as pre-pandemic salaries and benefits were reinstated, including $12.2 million of incentive compensation.

Operating profit in the Americas decreased to $11.3 million in the first nine months of ~~2019. The~~2021 compared with $77.9 million in the first nine months of 2020 due to a decrease in gross profit and higher operating expenses. Gross profit ~~was~~declined mainly due to material cost inflation and increased freight costs of $45.5 million, higher manufacturing costs resulting from inefficiencies associated with component shortages of $10.0 million, a shift in mix to lower-margin products and lower gross profit, primarily from lower unit and parts volume and manufacturing inefficiencies due to the COVID-19 pandemic and the resulting significant decline in economic activity in all geographic lift truck segments and Bolzoni. In addition, the absence of $11.8 million of favorable retroactive tariff exclusion adjustments recognized in 2019 and unfavorable currency movements of $5.4 million in EMEA, $3.4 million in JAPIC and $2.3 million in the Americasvolume. These items were partially offset by favorable ~~pricing~~parts sales and a favorable adjustment of $8.5 million for social contribution taxes previously imposed on material purchases in ~~all geographic lift truck segments.~~Brazil. The ~~decline~~increase in ~~gross profit was somewhat offset by lower~~ selling, general and administrative expenses ~~at all locations~~primarily resulted from the reinstatement of pre-pandemic salaries and benefits, including $8.9 million of incentive compensation.

EMEA recognized operating profit of $2.9 million in the first nine months of 2021 compared with an operating loss of $4.0 million in the first nine months of 2020 mainly as a result of improved gross profit partially offset by higher selling, general and administrative expenses. Gross profit increased from favorable foreign currency movements of $6.5 million, improved parts and unit volume and improved pricing, partially offset by the ~~Company implemented cost containment actions to mitigate the impact~~absence of ~~the COVID-19 pandemic as well as $6.6~~$6.5 million of government subsidies received in ~~EMEA.~~the first nine months of 2020. Selling, general and administrative expenses increased primarily as pre-pandemic salaries and benefits were reinstated, including $1.2 million of incentive compensation.

JAPIC's operating loss decreased to $7.9 million in the first nine months of 2021 from $12.7 million in the first nine months of 2020 primarily due to improved gross profit from higher unit volume and favorable foreign currency movements of $5.0 million partially offset by material cost inflation as well as higher manufacturing costs and a shift in mix to lower-margin products.

Operating profit at Bolzoni decreased to $0.4 million in the first nine months of 2021 compared with $2.3 million in the first nine months of 2020 mainly from material cost inflation, including freight, which offset the improved volumes. Operating profit was also unfavorably affected by the absence of government subsidies of $5.0 million and the reinstatement of pre-pandemic salaries and employee benefits, including $0.7 million of incentive compensation.

Nuvera's operating loss increased to $51.3 million in the first nine months of 2021 compared with $26.4 million in the first nine months of 2020 as result of charges of $24.8 million recorded in the first nine months of 2021 on Nuvera's inventory and property, plant and equipment. See Note 11 for further discussion of these charges at Nuvera.

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The Company recognized net loss attributable to stockholders of $69.7 million in the first nine months of 2021 compared with net income attributable to stockholders of $24.0 million in the first nine months of ~~2020 compared with $32.4 million in the first nine months of 2019.~~2020. The decrease was primarily the result of lower operating profit and ~~lower equity earnings~~a valuation allowance of ~~unconsolidated subsidiaries,~~$38.4 million provided against deferred tax assets in the third quarter of 2021. These items were partially offset by ~~lower interest expense. In addition, during the second quarter of 2020, the Company recognized~~ a ~~discrete tax benefit of $4.3~~$4.6 million gain related to the ~~expiration~~sale of the ~~statute~~Company's preferred shares of ~~limitations for uncertain tax positions related to acquisitions for which an offsetting pre-tax indemnity receivable was also recorded. The~~

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~~expense for the release of the indemnity receivable was recorded on the line “Other, net”~~OneH2 in the ~~unaudited condensed consolidated statements~~first nine months of ~~operations.~~2021 and higher equity earnings in unconsolidated subsidiaries. See Note 5 for further discussion of the Company's income tax provision.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

The following tables detail the changes in cash flow for the nine months ended September 30:

2020 2019 Change
Operating activities:
Net income $ 25.3 $ 33.2 $ (7.9)
Depreciation and amortization 31.8 32.3 (0.5)
Dividends from unconsolidated affiliates 7.3 5.1 2.2
Working capital changes 4.2 (93.0) 97.2
Other 7.5 5.1 2.4
Net cash provided by (used for) operating activities 76.1 (17.3) 93.4
Investing activities:
Expenditures for property, plant and equipment (37.2) (31.4) (5.8)
Proceeds from the sale of assets 7.4 6.9 0.5
Net cash used for investing activities (29.8) (24.5) (5.3)
Cash flow before financing activities $ 46.3 $ (41.8) $ 88.1


	2021		2020		Change
Operating activities:
Net income (loss)	$	(68.4)	$	25.3	$	(93.7)
Depreciation and amortization	34.7		31.8		2.9

Impairment charge	10.0		—		10.0
Dividends from unconsolidated affiliates	5.5		7.3		(1.8)
Working capital changes
Accounts receivable	(70.6)		60.2		(130.8)
Inventories	(261.9)		71.1		(333.0)
Accounts payable and other liabilities	173.1		(119.7)		292.8
Other current assets	(12.2)		(7.4)		(4.8)
Other operating activities	(2.0)		7.5		(9.5)
Net cash provided by (used for) operating activities	(191.8)		76.1		(267.9)
Investing activities:
Expenditures for property, plant and equipment	(29.5)		(37.2)		7.7
Proceeds from the sale of assets and investment	19.4		7.4		12.0


Net cash used for investing activities	(10.1)		(29.8)		19.7

Cash flow before financing activities	$	(201.9)	$	46.3	$	(248.2)

Net cash provided by (used for) operating activities ~~increased $93.4~~decreased $267.9 million in the first nine months of ~~2020~~2021 compared with the first nine months of ~~2019,~~2020, primarily as a result of ~~the change~~changes in working capital ~~items. During the first nine months of 2020, working capital was significantly affected by the COVID-19 pandemic~~items and ~~the resulting significant decline in economic activity. Accounts receivable, inventory and the related accounts payable~~net income (loss). The changes were ~~all significantly reduced compared with the first nine months of 2019 as the Company adjusted~~mainly due to the ~~reduced demand. In addition, other liabilities decreased during the first nine months of 2020 compared with the first nine months of 2019 mainly as a result of lower deferred revenue~~global supply chain constraints, component shortages, shipping container availability constraints and higher ~~payments of employee-related compensation.~~freight costs.

The change in net cash used for investing activities during the first nine months of ~~2020~~2021 compared with the first nine months of ~~2019~~2020 is due to ~~higher capital expenditures in 2020, primarily for new product development and improvements to~~ the ~~Company's information technology infrastructure. This was partially offset by~~ proceeds from the sale of ~~assets~~preferred shares of OneH2 for $15.7 million and lower capital expenditures in ~~the first nine months of 2020.~~

2020 2019 Change
Financing activities:
Net increase (decrease) of long-term debt and revolving credit agreements $ (2.7) $ 41.5 $ (44.2)
Cash dividends paid (16.0) (15.7) (0.3)
Other (0.4) (0.8) 0.4
Net cash provided by (used for) financing activities $ (19.1) $ 25.0 $ (44.1)
2021.


	2021		2020		Change
Financing activities:
Net increase (decrease) of long-term debt and revolving credit agreements	$	138.7	$	(2.7)	$	141.4
Cash dividends paid	(16.2)		(16.0)		(0.2)
Financing fees paid	(7.6)		—		(7.6)
Other	(0.2)		(0.4)		0.2
Net cash provided by (used for) financing activities	$	114.7	$	(19.1)	$	133.8

Net cash provided by (used for) financing activities ~~decreased $44.1~~increased $133.8 million in the first nine months of ~~2020~~2021 compared with the first nine months of ~~2019.~~2020. The ~~decrease~~increase was primarily related to ~~lower~~additional borrowings from refinancing the Term Loan (as defined below) and on the Facility (as defined below) in the first nine months of ~~2020~~2021 compared ~~with~~to the first nine months of ~~2019.~~2020. The borrowings were primarily used to fund working capital needs. The increase was partially offset by financing fees paid in connection with the amendments of the Facility and Term Loan.

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Financing Activities

The Company has a ~~$240.0~~$300.0 million secured, floating-rate revolving credit facility (the "Facility”) that expires in ~~April 2022.~~June 2026. There were no$73.6 million of borrowings outstanding under the Facility at September 30, ~~2020.~~2021. The availability under the Facility at September 30, ~~2020~~2021 was ~~$235.6~~$222.0 million, which reflects reductions of $4.4 million for letters of credit and other restrictions. As of September 30, ~~2020,~~2021, the Facility consisted of a U.S. revolving credit facility of ~~$150.0~~$210.0 million and a non-U.S. revolving credit facility of $90.0 million. The obligations under the Facility are generally secured by a first lien on the working capital assets of the borrowers in the Facility, which include but are not limited to, cash and cash equivalents, accounts receivable and

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inventory (the "Facility Collateral") and a second lien on the Term Loan Collateral (defined below). The approximate book value of assets held as collateral under the Facility was ~~$850 million~~$1.1 billion as of September 30, ~~2020.~~2021.

Borrowings under the Facility bear interest at a floating rate, ~~based on~~which can be a base rate, LIBOR or ~~LIBOR,~~EURIBOR, as defined in the Facility, plus an applicable margin. The applicable margins are based on the total excess availability, as defined in the Facility, and range from 0.25% to 0.75% for U.S. base rate loans and 1.25% to 1.75% for LIBOR, EURIBOR and foreign base rate loans. The applicable margins, as of September 30, ~~2020,~~2021, for U.S. base rate loans and LIBOR loans were 0.25% and 1.25%, respectively. The applicable margin, as of September 30, ~~2020,~~2021, for non-U.S. base rate loans and LIBOR loans was 1.25%. The

applicable interest rates for borrowings outstanding under the Facility on September 30, 2021 was 3.50%, 1.32% and 1.25% for the U.S. base rate, U.S. LIBOR and foreign LIBOR loans, respectively. The Facility also required the payment of a fee of 0.25% per annum on the unused commitments as of September 30, ~~2020.~~2021.

The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company ~~and its subsidiaries~~ subject to certain thresholds, as provided in the Facility. The Facility limits the payment of dividends and other restricted payments the Company may make unless certain total excess availability and/or fixed charge coverage ratio thresholds, each as set forth in the Facility, and limits the payment of dividends. If average availability for both total and U.S. revolving credit facilities, on a pro forma basis, is greater than 15% and less than or equal to 20%, the Company may pay dividends subject to achieving a minimum Fixed Charge Coverage Ratio of 1.00 to 1.00, as defined in the Facility. If the average availability is greater than 20% for both total and U.S. revolving credit facilities, on a pro forma basis, the Company may pay dividends without any minimum Fixed Charge Coverage Ratio requirement.are satisfied. The Facility also requires the Company to achieve a minimum ~~Fixed Charge Coverage Ratio in certain circumstances in which~~fixed charge coverage ratio when total excess availability is less than the greater of 10% of the total ~~commitments under the Facility or excess availability under the U.S. revolving credit facility is less than 10% of the U.S. revolver commitments,~~borrowing base, as defined in the ~~Facility.~~Facility, and $20.0 million. At September 30, ~~2020,~~2021, the Company was in compliance with the covenants in the Facility.

The Company also has a ~~$200.0~~$225.0 million term loan (the "Term Loan"), which matures in May ~~2023.~~2028. The Term Loan requires quarterly principal payments on the last ~~business~~ day of each March, June, September and December commencing September 30, 2021 in an amount equal to ~~$2.5 million. The~~$562,500 and the final principal repayment is due onin May ~~30, 2023.~~2028. The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan. At September 30, ~~2020,~~2021, there was ~~$167.5~~$224.4 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by ~~$2.1~~$5.5 million for discounts and unamortized deferred financing fees.

The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, material real property, fixtures and general intangibles consisting of intellectual property (collectively, the "Term Loan Collateral") and a second priority lien on the Facility Collateral. The approximate book value of assets held as collateral under the Term Loan was ~~$570~~$800 million as of September 30, ~~2020.~~2021.

Borrowings under the Term Loan bear interest at a floating rate, which can be a base rate or Eurodollar rate, as defined in the Term Loan, plus an applicable margin. The applicable margin, as provided in the Term Loan, is ~~2.25%~~2.50% for base rate loans and ~~3.25%~~3.50% for Eurodollar loans. The interest rate on the amount outstanding under the Term Loan at September 30, ~~2020~~2021 was ~~3.40%~~4.00%. In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Term Loan. The Term Loan limits the payment of ~~regularly scheduled~~ dividends and other restricted payments the Company may make up to $50.0 million in any fiscal year, unless the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed ~~1.75~~2.50 to 1.00 at the time of the payment. The Term Loan also contains a provision requiring a premium to be paid in the event of a repricing of the borrowings under the Term Loan, whether by amendment or entry into new loans, within the six-month period following entry into the Term Loan. At September 30, ~~2020,~~2021, the Company was in compliance with the covenants in the Term Loan.

The Company incurred fees and expenses of $7.6 million in 2021 related to the amendment of the Facility and the

Term Loan. These fees were deferred and are being amortized as interest expense over the term of the applicable debt

agreements. Fees related to the Term Loan are presented as a direct deduction of the corresponding debt.

The Company had other debt outstanding, excluding finance leases, of approximately ~~$103.4~~$109.4 million at September 30, ~~2020.~~2021. In addition to the excess availability under the Facility of ~~$235.6~~$222.0 million, the Company had remaining availability of ~~$31.1~~$23.9 million related to other non-U.S. revolving credit agreements.

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The Company believes funds available from cash on hand, the Facility, other available lines of credit and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments during the next twelve months and until the expiration of the Facility in ~~April 2022.~~June 2026.

Contractual Obligations, Contingent Liabilities and Commitments

~~Since December 31, 2019, there have been no significant changes in~~During the ~~total amount~~second quarter of 2021, the Company entered into an agreement providing for the amendment and restatement of the ~~Company's contractual~~Term Loan, which is described above. As of September 30, 2021, the Company had additional borrowings under the Term Loan, revolving credit agreements and other debt of $130.1 million and higher purchase and other obligations ~~or commercial commitments, or~~of $145.2 million than the ~~timing of cash flows in accordance with those obligations, as~~amounts reported on pages 2723 and 2824 in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

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Capital Expenditures

The following table summarizes actual and planned capital expenditures:

Nine Months Ended September 30, 2020 Planned for Remainder of 2020 Planned 2020 Total Actual 2019
Lift truck business $ 32.2 $ 19.7 $ 51.9 $ 37.8
Bolzoni 2.6 0.8 3.4 5.6
Nuvera 2.4 3.6 6.0 6.3
$ 37.2 $ 24.1 $ 61.3 $ 49.7


	Nine Months Ended September 30, 2021		Planned for Remainder of 2021		Planned 2021 Total		Actual 2020
Lift truck business	$	20.3	$	18.2	$	38.5	$	44.2
Bolzoni	7.3		3.6		10.9		5.3
Nuvera	1.9		0.6		2.5		2.2
	$	29.5	$	22.4	$	51.9	$	51.7

Planned expenditures for the remainder of ~~2020~~2021 are primarily for product development, improvements at manufacturing locations, improvements to information technology infrastructure ~~improvements at manufacturing locations~~ and manufacturing equipment. The principal sources of financing for these capital expenditures are expected to be internally generated funds and bank financing.

Capital Structure

The Company's capital structure is presented below:

SEPTEMBER 30
2020 DECEMBER 31
2019 Change
Cash and cash equivalents $ 89.9 $ 64.6 $ 25.3
Other net tangible assets 643.5 632.6 10.9
Intangible assets 57.0 60.1 (3.1)
Goodwill 109.9 106.7 3.2
Net assets 900.3 864.0 36.3
Total debt (297.7) (287.0) (10.7)
Total equity $ 602.6 $ 577.0 $ 25.6
Debt to total capitalization 33 % 33 % — %


	SEPTEMBER 30 2021			DECEMBER 31 2020			Change
Cash and cash equivalents	$	61.4		$	151.4		$	(90.0)
Other net tangible assets	712.2			615.7			96.5
Intangible assets	52.3			58.5			(6.2)
Goodwill	112.3			114.7			(2.4)
Net assets	938.2			940.3			(2.1)
Total debt	(428.0)			(289.2)			(138.8)
Total equity	$	510.2		$	651.1		$	(140.9)
Debt to total capitalization	46		%	31		%	15		%

~~BUSINESS PROSPECTS~~OUTLOOK AND STRATEGIC PERSPECTIVE

~~As economies continued~~Consolidated Outlook

Given the extensive component shortages due to reopen in the 2020 third quarter, lift truck market activity improved faster than anticipated, with markets ending the quarter at roughly pre-pandemic levels. Excluding China, which increased 78% over the prior year third quarter, the global lift truck market was down less than 1% compared with the third quarter of 2019. Compared to the second quarter of 2020, the global lift truck market increased 22.5% in the 2020 third quarter driven by a 28.8% increase in EMEAsupply chain constraints, significant material and ~~a 25.9% increase in the Americas,~~freight cost inflation, as well as ~~a 19.7% increase in China. The market improvements over the second quarter translated into a solid increase in 2020 third quarter Lift Truck bookings.~~

~~As market conditions improve,~~continued losses at Nuvera, the Company, on a consolidated basis, expects ~~that increased bookings~~significant operating and net losses for the ~~strategic programs~~2021 fourth quarter and in the first half of 2022. As the Company continues to ~~pursue will position each of its businesses to recover to sound~~evaluate the long-term financial returns. In the meantime, the Company continues to focus on aggressive actions to keep its employees healthy as COVID-19 cases once again spike around the globe and on moderating any resulting additional near-term financialfuture cash flow impacts of these issues, additional interim impairment testing may be necessary in future quarters and future impairment charges are reasonably possible. Consolidated results are expected to return to an operating profit in the ~~COVID-19 pandemic.~~

second half of 2022 assuming reasonable resolution of component shortages and relative stabilization of material and freight costs. The Company ~~continues~~also expects to ~~maintain procedures designed to limit the exposure~~have moderately reduced losses at Nuvera as a result of employees to the spread of COVID-19, including adjusting shift schedules to promote social distancing, enhancing cleaning and sanitation, promoting recommended hygiene practices, limiting workplace access and maintaining remote working where possible. At the same time, the Company and its employees remain committed to meeting the needs of dealers and end customers by ensuring they receive equipment, parts and services in a timely manner to the degree reasonably possible.enhanced fuel cell shipments.

While recent market and bookings activity is encouraging and growth since the 2020 second quarter shutdowns has been better than expected, the level of future bookings is still uncertain. The trend line for bookings is improving, but improvements are occurring at a decreasing rate, and COVID-19 cases are increasing. Overall, the Company ~~continues~~expects to ~~operate on~~make additional investments in the ~~assumption that~~business during the ~~economic~~fourth quarter of 2021, and ~~market environment~~in 2022, maintaining liquidity will ~~remain difficult throughout~~continue to be a priority. Capital expenditures in the ~~remainder~~fourth quarter of ~~2020 with COVID-19 cases~~2021 are expected to ~~increase in areas entering the winter season, and in 2021, until an effective COVID-19 vaccination or alternative therapy is widely available.~~

be approximately $22 million.

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Beginning late in the first quarter, the Company put plans in place to mitigate the impact of declining markets and bookings and the consequential impact of reduced manufacturing activity from pandemic-related shutdowns by initiating cost reduction measures which were designed to lower costs and enhance liquidity. Despite currently improving markets, these measures are expected to remain in place untilLift Truck Strategic Perspective

The global lift truck market and economic uncertainty dissipates and results improve, which the Company expects to occur over the course of 2021. The implementation of these company-wide cost reduction actions is designed to achieve $60 million to $75 million in operating expense savings in 2020 compared with 2019, of which approximately $47 million have been realized through September 30, 2020. The Company also adjusted production levels at its manufacturing plants during the 2020 second quarter to align them more closely with the anticipated reduced levels of demand and target bookings levels. Throughout the third quarter, the Company increased production levels moderately to adjust for improved market levels, and the Company anticipates increasing production levels further in the fourth quarter given expected bookings and backlog, barring, of course, any new government shutdowns. Based on current backlog levels and planned production levels, the Company expects to have adequate component supply and minimal open production slots over the remainder of 2020. This is expected to position the Company with both competitive lead times and an acceptable ongoing backlog level. The Company continues to focus on adjusting production levels quickly to market and bookings changes and on working closely with suppliers to help ensure appropriate component supply levels as its production levels change. Against this backdrop, the Company expects operating profit and net incomedecline in the fourth quarter of ~~2020 to be~~2021 compared with the prior year fourth quarter, but still remain significantly higher than ~~both~~pre-pandemic levels. Markets in 2022 are expected to recede from the ~~2020~~historical highs of 2021, but still be higher than pre-pandemic levels. As a result of this market outlook, the Lift Truck business is anticipating a substantial decrease in bookings in the 2021 fourth quarter compared with the third quarter ~~and prior year fourth quarter.~~

~~However, importantly, the Company's expectations for the 2020 fourth quarter were established prior to the most recent spikes~~ of ~~COVID-19 cases in a number of countries, including~~2021, and in the ~~Company's largest markets. This environment could develop into a headwind for current fourth quarter booking expectations. Further~~succeeding 2022 quarters compared with the Company or supplier shutdowns could occur. For example, while renewed measures have already been taken in a number of European countries to mitigate the spread of the virus, and similar actions are likely to be taken by other countries, at this time, the new measures put in place have not had a significant impact on the Company's plants or suppliers. However, the Company is monitoring the evolving situation, including monitoring closely a number of suppliers based in areas where cases are spiking. The Company is prepared to take further action if necessary to maintain the health and safety of its global employees and to address any production and supply chain issues which may develop. More broadly, as a result, pandemic-related uncertainty continues to limit the Company's ability to forecast bookings levels for 2021.respective 2021 quarters.

In ~~addition to~~ the ~~Company's focus on cost containment actions,~~first nine months of 2021, the Company has ~~also focused on actions~~experienced production and shipment levels which are far lower than its objectives due to ~~enhance its cash flow before financing, including reducing working capital~~supply chain logistics constraints. This is anticipated to continue in the 2021 fourth quarter and ~~reducing or deferring capital expenditures. Capital expenditures~~in at least the first half of 2022. Nonetheless, shipments are expected to ~~be approximately $61 million~~increase over the prior year fourth quarter and the third quarter of 2021. Significant material cost inflation and higher freight costs, which continued to worsen in ~~2020. Enhancing liquidity also continues~~the 2021 third quarter, and the current non-renewal of tariff exclusions are expected to ~~be a priority. At September 30, 2020,~~continue to affect the ~~Company's cash on hand was $89.9 million~~cost of components and ~~debt was $297.7 million~~freight negatively over the remainder of 2021 compared with ~~cash on hand~~the prior year fourth quarter. The Lift Truck business has implemented price increases several times over the course of ~~$60.5 million~~2021 to moderate the effect of material cost inflation, but many of the orders in the backlog slotted for production in the remainder of 2021 and ~~debt~~the first half of ~~$337.7 million at June 30, 2020. In addition, as~~2022 do not reflect the full effect of ~~September 30, 2020,~~all these price increases. As a result, the Company ~~had unused borrowing capacity~~expects to continue to experience low margins in the fourth quarter of ~~approximately $260 million under existing revolving credit facilities, compared with $218 million~~2021 and, at ~~June 30, 2020. Looking~~best, in the first half of 2022, due to the ~~future~~lag between when unit price increases went into effect and when they are realized as the units are shipped. The Company will continue to work aggressively to manage supply chain and logistics costs and component availability and tariff exclusions, and will adjust prices accordingly. As a result of these factors, and the increase in costs associated with the reinstatement of pre-pandemic salaries and benefits, significant operating and net losses are expected in the ~~context~~Lift Truck business in the 2021 fourth quarter and in the first half of ~~an improving bookings trend, the Company plans to increase its investment in working capital to support growth in its business.~~2022.

~~Despite~~From a strategic perspective, the ~~uncertainty related~~Lift Truck business has three core strategies that are expected to near-term economic activity, the Company continues to execute its long-term strategy. As the Company entered the COVID-19 crisis, it was in the midst of undertaking the largest set of strategic programs in its history with the expectation that they would collectively have a transformational impact on the Company’s competitiveness, market position and economic performance. ~~While essentially all~~The first is to provide the lowest cost of ownership while enhancing customer productivity. The primary focus of this strategic initiative is the new modular and scalable product projects, required to execute these strategies continue to move forward, in the context of the COVID-19 pandemic, the pace of certain projects has been given greater emphasis than others to reduce near-term operating expenses and capital expenditures.

~~At Lift Truck, product programs~~which are expected to lay the groundwork for enhanced market position by providing lower cost of ownership and enhanced productivity for the Company’s ~~customers. While~~customers, including low-intensity applications. Additional to this are key projects geared toward electrification of trucks for applications now dominated by internal combustion engine trucks, automation product options and providing telemetry and operator assist systems. The second core strategy is to be the leader in the delivery of industry- and customer-focused solutions. The primary focus for this strategic initiative is transforming the Company's sales approach by using an industry-focused approach to meet its customers' needs. The third core strategy is to be the leader in independent distribution. The main focus of this strategic initiative is on dealer and major account coverage, dealer excellence and ensuring outstanding dealer ownership globally.

As a result of these core strategies and the increased shipment volume potential of the current backlog and 2022 expected bookings, the Lift Truck business expects to return to an operating profit in the second half of 2022. Over this period, the Company ~~continues to introduce a number~~is assuming the stabilization or reduction of ~~new products during~~product and transportation costs and the continued expectation of improved component and logistics availability. Over this period ~~Lift Truck's primary focus~~and the longer term, the Company is ~~on a new set~~also assuming the continued introduction of the currently released and additional modular and scalable product families ~~covering both internal combustion engine~~ and ~~electric trucks which will provide customers with enhanced flexibility for meeting their application needs in addition to~~ the ~~benefit~~continued implementation of ~~lowest total~~ cost of ownership. The Company has been focused on maintaining the timing of the introduction of the first of these products, the standard version of the 2-to-3 ton internal combustion engine lift truck for the EMEA market, which is expected to be launched in the first quarter of 2021. The launch of this new range of the 2-to-3 ton counterbalanced trucks will continue throughout 2021, with trucks for the Americas market expected to be launched in the second half of 2021.savings initiatives.

~~The introduction of these new products will lead to significant changes~~Bolzoni Strategic Perspective

Bolzoni expects increases in ~~supply chain sourcing~~operating profit and net income in the ~~Company’s various manufacturing facilities around~~fourth quarter of 2021 compared with both the ~~world~~prior-year period and the first nine months of 2021. Over the course of 2022, Bolzoni expects component shortages to moderate and pricing to permit improved returns as certain products are moved between plants. Consolidated component volume sourced globally from reliable partners is expected to reduce costs and improve quality as these new products are brought to market over time. Lift Truck’s largest manufacturing facilities, its Berea, Craigavon and Greenville plants, are undergoing significant changes and additional investments are being made at these plants. Given the ~~current environment, the Company has also accelerated plans to move certain products in order to provide permanent structural changes to reduce~~year progresses despite higher costs.

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The Company believes the modular nature of the new products being introduced will enhance its ability to meet customer needs at lowest cost and with more specificity, both at the industry level and at the individual customer level. To capitalize on this capability, the Company has accelerated its focus on implementing comprehensive industry strategies, and investing in industry-focused sales capabilities to support its dealers. Given the COVID-19 environment, the Company has also focused on enhancing its remote selling capabilities through technology and IT enhancements.

Bolzoni continues to focus on its Americas growth strategy by strengthening its ability to serve the North America market through the supply of cylinders and various other components from its Sulligent, Alabama plant, and by introducing a broader range of locally produced attachments with shorter lead times to serve its customer base. Bolzoni is also implementing its "One Company - 3 ~~brands"~~Brands" organizational approach to help streamline corporate operations and strengthen its North America and JAPIC commercial operations. Bolzoni is working to increase its Americas business by strengthening its ability to serve key attachment industries and customers in the North America market through the introduction of a broader range of locally produced attachments with shorter lead times, while continuing to sell cylinders and various other components produced in its Sulligent, Alabama plant. Bolzoni is also increasing its sales, marketing and product support capabilities both in North America and Europe based on an industry-specific approach, with an immediate focus on the paper, beverage, appliance, 3PL and automotive industries.

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Nuvera Strategic Perspective

Nuvera continues to focus on serving niche, heavy-duty ~~applications, particularly bus and truck~~vehicle applications with expected strong near-term fuel cell adoption potential, using its 45kW ~~engine,~~and 60kW engines, which ~~was~~were both released for sale during the 2020 second quarter. It also continues to focus on the forklift truck market. During the second quarter of 2020, Nuvera, which had successfully achieved certification of its first 45kW engine for China in 2019, received its first integration certification which allows the engines to operate in buses. During the third quarter, testing of these engines in Chinese buses was completed for one company, and that company has now included the certified bus design in its sales catalog. Certifications for other bus companies are expected late in ~~the fourth quarter of 2020 and in the first half of 2021.~~2020. As a result of these ~~milestones,~~releases, Nuvera ~~has~~ accelerated ~~the~~its 45kW and 60kW engine commercialization operations for the global ~~market and is focusing on ramping up sales of this product in~~market. In the fourth quarter of ~~2020~~2021 and in ~~2021.~~2022, Nuvera ~~is also developing~~will continue to focus on ramping up demonstrations, quotes and bookings of these products. In addition, Nuvera has initiated development of a new 125kW engine ~~of approximately 60kW for the Chinese market that is expected~~and continues to begin the certification process during the fourth quarter. The engine certification for this new engine is expected to be received during the 2020 fourth quarter, with the vehicle integration certification expected to be completed latefocus on applications in the ~~quarter or early in the first quarter of 2021.~~forklift truck market.

In summary, the Company believes it is at an inflection point in its business as a result of the momentum of its strategic programs as they move to full implementation. While these initiatives may reduce the Company's near-term financial results, they are expected to position the Company with enhanced market position as market conditions return to more normal levels. Nevertheless, since the Company recognizes that the timing and shape of the market recovery is highly uncertain, it will focus on responding to changing conditions with agility based on contingency plans which appropriately respond to conditions as they unfold. Once the COVID-19 pandemic has abated and markets have returned to normal, the Company believes the full impact of these programs can lead to significant profitability improvements for a number of years to come.

EFFECTS OF FOREIGN CURRENCY

The Company operates internationally and enters into transactions denominated in foreign currencies. As a result, the Company is subject to the variability that arises from exchange rate movements. The effects of foreign currency fluctuations on revenues, operating profit and net income are addressed in the previous discussions of operating results. See also Item 3, "Quantitative and Qualitative Disclosures About Market Risk,” in Part I of this Quarterly Report on Form 10-Q.

FORWARD-LOOKING STATEMENTS

The statements contained in this Form 10-Q that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials and transportation costs and shortages, the imposition of tariffs, or the renewal of tariff exclusions, on raw materials or sourced products, and labor or changes in or unavailability of quality suppliers or transporters, (2) the duration and severity of the COVID-19 pandemic, any preventive or protective actions taken by governmental authorities, the effectiveness of actions taken globally to contain or mitigate its effects, and any unfavorable effects of the COVID-19 pandemic on either the Company's or its suppliers plants' capabilities to produce and ship products if COVID-19 continues to spread or quarantines are re-established, (2) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any reduction in demand as a result of a COVID-19 triggered economic recession, (3) the ability of the Company and its dealers, suppliers and end-users to access credit in the current economic environment, or obtain financing at reasonable rates, or at all, as a result of current economic and market conditions, (4) ~~delays in delivery~~further impairment charges or ~~increases in costs, including transportation costs,~~charges due to the ~~imposition of tariffs, or the renewal of tariff exclusions, of raw materials or sourced products and labor or changes in or unavailability of quality suppliers,~~valuation allowances, (5) delays in manufacturing and delivery schedules, (6) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any reduction in demand as a result of a COVID-19 triggered economic recession, (7) the successful commercialization of Nuvera's technology, ~~(7)~~(8) customer acceptance of pricing, ~~(8)~~(9) the political and economic uncertainties in the countries where the Company does business, ~~(9)~~(10) exchange rate fluctuations and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, ~~(10)~~(11) bankruptcy of or loss of major dealers, retail customers or suppliers,

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~~(11)~~ (12) customer acceptance of, changes in the costs of, or delays in the development of new products, ~~(12)~~(13) introduction of new products by, or more favorable product pricing offered by, competitors, ~~(13)~~(14) product liability or other litigation, warranty claims or returns of products, ~~(14)~~(15) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, ~~(15)~~(16) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, and ~~(16)~~(17) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation ~~the United Kingdom's exit from the European Union,~~ the entry into new trade agreements and the imposition of tariffs and/or economic sanctions.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

See pages 3227 and 3328 and ~~F-27~~F-23 through ~~F-30~~F-26 of the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 for a discussion of the Company's derivative hedging policies and use of financial instruments. There have been no material changes in the Company's market risk exposures since December 31, ~~2019.~~2020.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures: An evaluation was carried out under the supervision and with the participation of the Company's management, including the principal executive officer and the principal financial officer, of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report. Based on

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that evaluation, these officers have concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in internal control over financial reporting: During the third quarter of ~~2020,~~2021, there were no changes in the Company's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II

OTHER INFORMATION

Item 1 Legal Proceedings

None

Item 1A Risk Factors

~~The following risk factor updates the~~There have been no material changes from risk factors previously disclosed in the ~~Company’s~~Company's Annual Report on Form 10-K for the fiscal year ended December 31, ~~2019~~2020 in the ~~section~~Section entitled ~~“Risk~~"Risk Factors.~~” The impact of COVID-19 may also exacerbate the risks discussed therein, any of which could have a material effect on the Company.~~

The Company faces risks related to the global outbreak of COVID-19, which has adversely affected and may continue to adversely affect the Company’s business, results of operations and financial condition.

The Company faces risks related to pandemics and other public health crises, including the global outbreak of COVID-19, which has reached and disrupted areas in which the Company has operations, suppliers, customers and employees. The COVID-19 pandemic and actions taken by governments and others in response have resulted in and may continue to cause the closure of certain of the Company’s customers’ facilities, which in turn has reduced and may continue to reduce demand for its products. Furthermore, as a result of the COVID-19 pandemic, certain of the Company’s suppliers have been unable to provide materials to its facilities. This disruption to the Company’s supply chain has negatively impacted its business and results of operations and it is unable to predict the ultimate duration of such disruption and whether it will be able to secure supplies from alternate suppliers on favorable terms or at all. Moreover, the Company has closed and may continue to close certain of its facilities in response to the COVID-19 pandemic and measures taken by governments in response, which has and may continue to have a negative impact on its business and results of operations. The COVID-19 pandemic has also disrupted the Company’s internal operations, including by causing a large number of its employees to work remotely, subjecting the Company to heightened cyber and other risks. There is also a heightened risk that a significant portion of the Company’s workforce will suffer illness or otherwise not be permitted or be unable to work. The Company cannot predict whether any of these disruptions will continue or whether its operations will experience more significant or frequent disruptions in the future. Any measures the Company implements to mitigate these risks and disruptions may not be successful.

The circumstances surrounding the COVID-19 pandemic continue to evolve and it is not possible to predict the full nature and extent of the impacts of the COVID-19 pandemic. However, the continued spread of COVID-19 and reactions by governments and others has caused an economic slowdown that is significant, which the Company expects to continue and, therefore, could extend the duration of the period of reduced demand for the Company’s products and disruption of its supply chain. Additionally, deteriorating economic conditions could result in material impairment charges in the value of certain of the

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Company’s assets. Moreover, circumstances surrounding the COVID-19 pandemic have negatively impacted global financial markets leading to greater volatility and increased cost of capital. If such conditions continue, the Company’s ability to borrow capital and otherwise finance its operations and expenditures may be negatively impacted.

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3 Defaults Upon Senior Securities

None

Item 4 Mine Safety Disclosures

Not applicable

Item 5 Other Information

None

Item 6 Exhibits

The following exhibits are filed as part of this report:


Exhibit
Number*						Description of Exhibits

10.1**						Hyster-Yale Materials Handling, Inc. and Subsidiaries Director Fee Policy (A mended Effective as of July 1, 2021) is attached hereto
31(i)(1)						Certification of Alfred M. Rankin, Jr. pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
31(i)(2)						Certification of Kenneth C. Schilling pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
32						Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by Alfred M. Rankin, Jr. and Kenneth C. Schilling
101.INS						Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						The cover page from this Quarterly Report on Form 10-Q for the quarter ended September 30, ~~2020,~~2021, formatted in Inline XBRL and contained in Exhibit 101
* Numbered in accordance with Item 601 of Regulation S-K.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		Hyster-Yale Materials Handling, Inc.

Date:	November ~~3, 2020~~2, 2021	/s/ Kenneth C. Schilling
		Kenneth C. Schilling
		Senior Vice President and Chief Financial Officer (principal financial ~~and accounting~~ officer)

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	SEPTEMBER 30 2020		DECEMBER 31 2019
	(In millions, except share data)
ASSETS
Current Assets
Cash and cash equivalents	$	89.9	$	64.6
Accounts receivable, net	398.1		468.3
Inventories, net	490.3		559.9
Prepaid expenses and other	53.1		63.0
Total Current Assets	1,031.4		1,155.8
Property, Plant and Equipment, Net	329.2		308.5
Intangible Assets, Net	57.0		60.1
Goodwill	109.9		106.7
Deferred Income Taxes	25.3		30.8
Investment in Unconsolidated Affiliates	75.8		80.0
Other Non-current Assets	105.3		105.3
Total Assets	$	1,733.9	$	1,847.2
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	361.8	$	401.5
Accounts payable, affiliates	9.1		15.6
Revolving credit facilities	0.6		7.7
Current maturities of long-term debt	80.2		74.6
Accrued payroll	40.0		66.1

Deferred revenue	39.7		49.1
Other current liabilities	146.4		202.4
Total Current Liabilities	677.8		817.0
Long-term Debt	216.9		204.7
Self-insurance Liabilities	30.8		31.4
Pension Obligations	12.7		13.5
Deferred Income Taxes	14.8		15.4
Other Long-term Liabilities	178.3		188.2
Total Liabilities	1,131.3		1,270.2
Stockholders' Equity
Common stock:
Class A, par value $0.01 per share, 12,941,147 shares outstanding (2019 - 12,802,455 shares outstanding)	0.1		0.1
Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 3,855,790 shares outstanding (2019 - 3,864,462 shares outstanding)	0.1		0.1
Capital in excess of par value	312.7		321.3
Treasury stock	(6.5)		(15.9)
Retained earnings	435.4		427.4
Accumulated other comprehensive loss	(172.4)		(188.7)
Total Stockholders' Equity	569.4		544.3
Noncontrolling Interests	33.2		32.7
Total Equity	602.6		577.0
Total Liabilities and Equity	$	1,733.9	$	1,847.2


	September 30, 2020		December 31, 2019

HYGFS	$	19.8	$	22.8
SN	42.5		43.9
Bolzoni	0.4		0.3


	Nine Months Ended September 30, 2020		Planned for Remainder of 2020		Planned 2020 Total		Actual 2019
Lift truck business	$	32.2	$	19.7	$	51.9	$	37.8
Bolzoni	2.6		0.8		3.4		5.6
Nuvera	2.4		3.6		6.0		6.3
	$	37.2	$	24.1	$	61.3	$	49.7