Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020shares | |
Cover [Abstract] | |
Entity Registrant Name | The Manitowoc Company, Inc. |
Entity Central Index Key | 0000061986 |
Trading Symbol | MTW |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Shares Outstanding | 34,521,063 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 1-11978 |
Entity Tax Identification Number | 39-0448110 |
Entity Address, Address Line One | 11270 West Park Place |
Entity Address, Address Line Two | Suite 1000 |
Entity Address, City or Town | Milwaukee |
Entity Address, State or Province | WI |
Entity Address, Postal Zip Code | 53224 |
City Area Code | 414 |
Local Phone Number | 760-4600 |
Entity Incorporation, State or Country Code | WI |
Title of 12(b) Security | Common Stock, $.01 Par Value |
Security Exchange Name | NYSE |
Entity Interactive Data Current | Yes |
Document Quarterly Report | true |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 328.3 | $ 504.7 | $ 657.5 | $ 922.7 |
Cost of sales | 279.9 | 409.5 | 545.9 | 747.3 |
Gross profit | 48.4 | 95.2 | 111.6 | 175.4 |
Operating costs and expenses: | ||||
Engineering, selling and administrative expenses | 49.7 | 50.5 | 105.6 | 109.9 |
Amortization of intangible assets | 0.1 | 0.1 | 0.2 | 0.2 |
Restructuring expense | 0.2 | 2.7 | 1.7 | 7.2 |
Total operating costs and expenses | 50 | 53.3 | 107.5 | 117.3 |
Operating income (loss) | (1.6) | 41.9 | 4.1 | 58.1 |
Other income (expense): | ||||
Interest expense | (7.2) | (7.5) | (14.4) | (18.4) |
Amortization of deferred financing fees | (0.3) | (0.4) | (0.7) | (0.8) |
Loss on debt extinguishment | (25) | |||
Other income (expense) - net | (2.9) | 15.9 | (6.9) | 12.6 |
Total other income (expense) | (10.4) | 8 | (22) | (31.6) |
Income (loss) before income taxes | (12) | 49.9 | (17.9) | 26.5 |
Provision for income taxes | 0.7 | 3.9 | 2.6 | 7.2 |
Net income (loss) | $ (12.7) | $ 46 | $ (20.5) | $ 19.3 |
Per Share Data | ||||
Basic income (loss) per common share | $ (0.37) | $ 1.29 | $ (0.59) | $ 0.54 |
Diluted income (loss) per common share | $ (0.37) | $ 1.29 | $ (0.59) | $ 0.54 |
Weighted average shares outstanding - basic | 34,519,889 | 35,595,718 | 34,827,582 | 35,619,145 |
Weighted average shares outstanding - diluted | 34,519,889 | 35,725,908 | 34,827,582 | 35,799,089 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (12.7) | $ 46 | $ (20.5) | $ 19.3 |
Other comprehensive income (loss), net of income tax | ||||
Unrealized income on derivatives, net of income tax provision of $0.0, $0.0, $0.0 and $0.0, respectively | 0.1 | 0.6 | 0.1 | 0.7 |
Employee pension and postretirement benefit expense, net of income tax benefit of $0.3, $0.0, $0.0 and $0.0, respectively | 0.6 | 0.5 | 1.8 | 1 |
Foreign currency translation adjustments | 8.6 | 1.2 | (5) | (1.3) |
Total other comprehensive income (loss), net of income tax | 9.3 | 2.3 | (3.1) | 0.4 |
Comprehensive income (loss) | $ (3.4) | $ 48.3 | $ (23.6) | $ 19.7 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized income (loss) on derivatives, net of income tax benefit | $ 0 | $ 0 | $ 0 | $ 0 |
Employee pension and post retirement benefits, net of income tax benefit | $ 0.3 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 128.3 | $ 199.3 |
Accounts receivable, less allowances of $9.4 and $7.9, respectively | 171.9 | 168.3 |
Inventories — net | 534.5 | 461.4 |
Notes receivable — net | 14 | 17.4 |
Other current assets | 33 | 26 |
Total current assets | 881.7 | 872.4 |
Property, plant and equipment — net | 277.8 | 289.9 |
Operating lease right-of-use assets | 42.8 | 47.6 |
Goodwill | 232 | 232.5 |
Other intangible assets — net | 115.9 | 116.3 |
Other non-current assets | 54.7 | 59 |
Total assets | 1,604.9 | 1,617.7 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 332.6 | 340.8 |
Short-term borrowings and current portion of long-term debt | 4.3 | 3.8 |
Product warranties | 45.8 | 47.2 |
Customer advances | 15.8 | 25.8 |
Other liabilities | 22.2 | 23.3 |
Total current liabilities | 420.7 | 440.9 |
Non-Current Liabilities: | ||
Long-term debt | 356.9 | 308.4 |
Operating lease liabilities | 33.3 | 37.6 |
Deferred income taxes | 4.3 | 5.5 |
Pension obligations | 83.7 | 86.4 |
Postretirement health and other benefit obligations | 15.6 | 16.4 |
Long-term deferred revenue | 27.4 | 30.3 |
Other non-current liabilities | 47.3 | 46.3 |
Total non-current liabilities | 568.5 | 530.9 |
Commitments and contingencies (Note 18) | ||
Stockholders' Equity: | ||
Preferred stock (authorized 3,500,000 shares of $.01 par value; none outstanding) | ||
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 34,521,063 and 35,374,537 shares outstanding, respectively) | 0.4 | 0.4 |
Additional paid-in capital | 596 | 592.2 |
Accumulated other comprehensive loss | (124.1) | (121) |
Retained earnings | 215.5 | 236.2 |
Treasury stock, at cost (6,272,920 and 5,419,446 shares, respectively) | (72.1) | (61.9) |
Total stockholders' equity | 615.7 | 645.9 |
Total liabilities and stockholders' equity | $ 1,604.9 | $ 1,617.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts Receivable, allowances (in dollars) | $ 9.4 | $ 7.9 |
Preferred stock authorized (in shares) | 3,500,000 | 3,500,000 |
Par value of preferred stock per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 40,793,983 | 40,793,983 |
Common stock, shares outstanding (in shares) | 34,521,063 | 35,374,537 |
Treasury stock (in shares) | 6,272,920 | 5,419,446 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (20.5) | $ 19.3 |
Adjustments to reconcile net income (loss) to cash used for operating activities: | ||
Depreciation | 18.1 | 17.4 |
Amortization of intangible assets | 0.2 | 0.2 |
Amortization of deferred financing fees | 0.7 | 0.8 |
Loss on debt extinguishment | 25 | |
Other | 5.9 | 6 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6.4) | (222.6) |
Inventories | (73.4) | (106.5) |
Notes receivable | 5.6 | (2.3) |
Other assets | (6.4) | 26.1 |
Accounts payable | (6.5) | 22.1 |
Accrued expenses and other liabilities | (16) | (20.9) |
Net cash used for operating activities | (98.7) | (235.4) |
Cash Flows from Investing Activities: | ||
Capital expenditures | (8) | (9.7) |
Proceeds from sale of fixed assets | 0.1 | 4.8 |
Cash receipts on sold accounts receivable | 126.3 | |
Net cash provided by (used for) investing activities | (7.9) | 121.4 |
Cash Flows from Financing Activities: | ||
Proceeds from revolving credit facility | 50 | 82.8 |
Payments on revolving credit facility | (82.8) | |
Payments on long-term debt | (276.6) | |
Proceeds from long-term debt | 300 | |
Other debt - net | (1.5) | 1.9 |
Debt issuance costs | (8.2) | |
Exercises of stock options | 0.1 | 0.1 |
Common stock repurchases | (12) | (7.4) |
Net cash provided by financing activities | 36.6 | 9.8 |
Effect of exchange rate changes on cash and cash equivalents | (1) | (1.1) |
Net decrease in cash and cash equivalents | (71) | (105.3) |
Cash and cash equivalents at beginning of period | 199.3 | 140.3 |
Cash and cash equivalents at end of period | $ 128.3 | $ 35 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock |
Balance at beginning of period at Dec. 31, 2018 | $ 0.4 | $ 584.8 | $ (116.6) | $ 189.6 | $ (56.9) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised and issuance of other stock awards | (2.1) | 2.1 | ||||
Stock-based compensation | 6.1 | |||||
Other comprehensive income (loss) | 0.4 | |||||
Net income (loss) | $ 19.3 | 19.3 | ||||
Common stock repurchases | (7.4) | |||||
Balance at end of period at Jun. 30, 2019 | 619.7 | 0.4 | 588.8 | (116.2) | 208.9 | (62.2) |
Balance at beginning of period at Mar. 31, 2019 | 0.4 | 586 | (118.5) | 162.9 | (55) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised and issuance of other stock awards | (0.2) | 0.2 | ||||
Stock-based compensation | 3 | |||||
Other comprehensive income (loss) | 2.3 | |||||
Net income (loss) | 46 | 46 | ||||
Common stock repurchases | (7.4) | |||||
Balance at end of period at Jun. 30, 2019 | 619.7 | 0.4 | 588.8 | (116.2) | 208.9 | (62.2) |
Balance at beginning of period at Dec. 31, 2019 | 0.4 | 592.2 | (121) | 236.2 | (61.9) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised and issuance of other stock awards | (2.1) | 1.8 | ||||
Stock-based compensation | 5.9 | |||||
Other comprehensive income (loss) | (3.1) | |||||
Adoption of accounting standards update | (0.2) | |||||
Net income (loss) | (20.5) | (20.5) | ||||
Common stock repurchases | (12) | (12) | ||||
Balance at end of period at Jun. 30, 2020 | 615.7 | 0.4 | 596 | (124.1) | 215.5 | (72.1) |
Balance at beginning of period at Mar. 31, 2020 | 0.4 | 593.7 | (133.4) | 228.2 | (72.2) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Stock options exercised and issuance of other stock awards | (0.2) | 0.1 | ||||
Stock-based compensation | 2.5 | |||||
Other comprehensive income (loss) | 9.3 | |||||
Net income (loss) | (12.7) | (12.7) | ||||
Balance at end of period at Jun. 30, 2020 | $ 615.7 | $ 0.4 | $ 596 | $ (124.1) | $ 215.5 | $ (72.1) |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies and Basis of Presentation | 1. Accounting Policies and Basis of Presentation The Manitowoc Company, Inc. (“Manitowoc,” “MTW” or the “Company”) was founded in 1902 and has over a 117-year tradition of providing high-quality, customer-focused products and support services to its markets. Manitowoc is one of the world’s leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, and supports comprehensive product lines of mobile telescopic cranes, tower cranes, lattice-boom crawler cranes, and boom trucks under the Grove, Manitowoc, National Crane, Potain, Shuttlelift and Manitowoc Crane Care brand names. The Company serves a wide variety of customers, including dealers, rental companies, contractors, and government entities, across the petrochemical, industrial, commercial construction, power and utilities, infrastructure and residential construction end markets. Additionally, the Company’s Manitowoc Crane Care offering leverages Manitowoc's installed base of approximately 149,000 cranes to provide aftermarket parts and services to enable its customers to manage their fleets more effectively and improve their return on investment. Due to the ongoing and predictable maintenance needed by cranes, as well as the high cost of crane downtime, Manitowoc Crane Care provides the Company with a consistent stream of recurring revenue. The Company has three reportable segments, the Americas segment, Europe and Africa (“EURAF”) segment and Middle East and Asia Pacific (“MEAP”) segment. The segments were identified using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance. Refer to Note 17, “Segments” for additional information. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments necessary for a fair statement of the results of operations, comprehensive income and equity for the three and six months ended June 30, 2020 and 2019, the cash flows for the same six-month periods and the financial position at June 30, 2020 and December 31, 2019, and except as otherwise discussed, such adjustments consist of only those of a normal recurring nature. The interim results are not necessarily indicative of results for a full year and do not contain information included in the Company’s annual consolidated financial statements and notes for the year ended December 31, 2019. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), have been condensed or omitted pursuant to Securities and Exchange Commission rules and regulations dealing with interim financial statements. However, the Company believes that the disclosures made in the Condensed Consolidated Financial Statements included herein are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest annual report on Form 10-K. All amounts, except share and per share amounts, are in millions throughout the tables in these notes unless otherwise indicated. Impact of COVID-19 Pandemic There is considerable uncertainty regarding the future impact, and expected duration, of the COVID-19 pandemic, and restrictions on the Company’s access to its facilities or on its support operations or workforce, or similar limitations for its customers, dealers and suppliers. There is no certainty that measures taken by governmental authorities will be sufficient to mitigate the risks posed by the virus, and the Company’s ability to perform critical functions could be harmed. This uncertainty could have an impact in future periods on certain estimates used in the preparation of the Company’s second quarter financial results, including, but not limited to, impairment of goodwill and other long-lived assets, income tax provision, recoverability of inventory and hedge accounting with respect to forecasted future transactions. |
Recent Accounting Changes and P
Recent Accounting Changes and Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Recent Accounting Changes And Pronouncements [Abstract] | |
Recent Accounting Changes and Pronouncements | 2. Recent Accounting Changes and Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 “Income Taxes (Topic 740).” The amendments in this ASU simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for annual periods beginning after December 15, 2020. The Company is currently evaluating the impact the adoption of the ASU will have on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15 “Intangibles – Goodwill and Other – Internal-use Software (Subtopic 250-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for annual periods beginning after December 15, 2019. The adoption of the ASU did not have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. The new guidance is applicable to financial assets measured at amortized cost, net investments in leases and certain off-balance sheet credit exposures. The standard was effective for annual periods beginning after December 15, 2019. The adoption of the ASU resulted in a $0.2 million reduction in beginning retained earnings and a corresponding reduction in accounts receivable on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2020. There was no material impact to the Company’s Condensed Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 3. Revenues The Company records deferred revenue when cash payments are received or due in advance of satisfying the performance obligation. The table below shows the change in the customer advances balance for the three and six months ended June 30, 2020 and 2019 which are included in current liabilities in the Condensed Consolidated Balance Sheets. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance at beginning of period $ 21.0 $ 13.3 $ 25.8 $ 9.6 Cash received or due in advance of satisfying performance obligation 15.9 18.3 44.8 50.2 Revenue recognized (21.6 ) (21.1 ) (54.1 ) (49.4 ) Currency translation 0.5 0.1 (0.7 ) 0.2 Balance at end of period $ 15.8 $ 10.6 $ 15.8 $ 10.6 Disaggregation of the Company’s revenue sources are disclosed in Note 17, “Segments.” |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value as of June 30, 2020 and December 31, 2019, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value as of June 30, 2020 Level 1 Level 2 Level 3 Total Recognized Location Forward currency exchange contracts $ — $ 0.1 $ — $ 0.1 Other current assets Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total Recognized Location Forward currency exchange contracts $ — $ 0.1 $ — $ 0.1 Other current assets Forward currency exchange contracts — 0.1 — 0.1 Accounts payable and accrued expenses The fair value of the senior secured second lien notes due on April 1, 2026, with an annual coupon rate of 9.000% (the “2026 Notes”), was approximately $299.0 million as of June 30, 2020. See Note 11, “Debt,” for a description of the 2026 Notes and the related carrying value. The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company estimates the fair value of its 2026 Notes based on quoted market prices; because these markets are typically actively traded, the liabilities are classified as Level 1 within the valuation hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and short-term variable debt, including any amounts outstanding under the revolving credit facility , approximate fair value, without being discounted as of June 30, 2020 and December 31, 2019 , due to the short-term nature of these instruments. Forward currency exchange contracts (“FX Forward Contracts”) are valued through an independent valuation source which uses an industry standard data provider, with resulting valuations periodically validated through third-party or counterparty quotes. As such, these derivative instruments are classified within Level 2. See Note 5, “Derivative Financial Instruments” for additional information. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 5. Derivative Financial Instruments The Company’s risk management objective is to ensure that business exposures to risks are minimized using the most effective and efficient methods to eliminate, reduce, or transfer such exposures. Operating decisions consider these associated risks and, whenever possible, transactions are structured to avoid or mitigate these risks. From time to time, the Company enters into FX Forward Contracts to manage the exposure on forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities in currencies other than the functional currency of certain subsidiaries. Certain of these FX Forward Contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss). These changes in fair value are reclassified into earnings as a component of cost of sales, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of other income expense – net in the period in which the transaction is no longer considered probable of occurring. No amounts were recorded related to these types of transactions during the three and six months ended June 30, 2020 and 2019, respectively. The Company had FX Forward Contracts with an aggregate notional amount of $9.6 million and $32.6 million outstanding as of June 30, 2020 and December 31, 2019, respectively. The aggregate notional amount outstanding as of June 30, 2020 is scheduled to mature within one year. The FX Forward Contracts purchased are denominated in various foreign currencies. As of June 30, 2020 and December 31, 2019, the net fair value of these contracts was a net current asset of $0.1 million and a net zero balance, respectively. There was $0.1 million and zero unrealized gains, net of income tax, recorded in accumulated other comprehensive loss as of June 30, 2020 and December 31, 2019, respectively. The following table provides the amount of gain or loss recorded in the Condensed Consolidated Statement of Operations for FX Forward Contracts for the three and six months ended June 30, 2020 and June 30, 2019. Three Months Ended June 30, Six Months Ended June 30, Recognized Location 2020 2019 2020 2019 Designated Cost of sales $ 0.2 $ 0.7 $ 0.3 $ 1.5 Non-Designated Other income (expense) - net $ (0.4 ) $ (1.6 ) $ (0.4 ) $ (2.3 ) |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories The components of inventories as of June 30, 2020 and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Raw materials $ 140.7 $ 156.3 Work-in-process 116.5 116.3 Finished goods 329.7 239.4 Total inventories 586.9 512.0 Excess and obsolete inventory reserve (52.4 ) (50.6 ) Inventories — net $ 534.5 $ 461.4 |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Notes Receivable | 7. Notes Receivable The Company has notes receivable balances that are classified as current or long-term based on the timing of amounts due. Long-term notes receivable are included within other non-current assets on the Condensed Consolidated Balance Sheets. Current and long-term notes receivable balances primarily relate to the Company’s captive finance entity in China. As of June 30, 2020, the Company had current and long-term notes receivable in the amount of $14.0 million and $14.8 million, respectively. As of December 31, 2019, the Company had current and long-term notes receivable in the amount of $17.4 million and $16.3 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 8. Property, Plant and Equipment The components of property, plant and equipment at June 30, 2020 and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Land $ 23.2 $ 24.0 Building and improvements 195.6 197.3 Machinery, equipment and tooling 275.3 274.2 Furniture and fixtures 18.8 18.5 Computer hardware and software 117.6 119.3 Rental cranes 75.2 77.7 Construction in progress 10.8 11.2 Total cost 716.5 722.2 Less accumulated depreciation (438.7 ) (432.3 ) Property, plant and equipment — net $ 277.8 $ 289.9 Property, plant and equipment are depreciated over the asset’s estimated useful life using the straight-line depreciation method for financial reporting and accelerated methods for income tax purposes. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets The Company performs an annual impairment review of goodwill and indefinite-lived intangible assets during the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. During the three months ended March 31, 2020, the Company considered the decline in its market capitalization due to the COVID-19 pandemic as an interim triggering event. The Company’s interim test results as of March 31, 2020 indicated that the fair values of all reporting units exceeded their carrying values and thus, no impairment of goodwill existed. No additional triggers for an interim impairment test have been identified since March 31, 2020. However, the Company is unable to predict future impacts of the COVID-19 pandemic, including a prolonged and/or more severe pandemic than anticipated, or future changes in management’s judgements and assumptions used to assess the fair value of the reporting units, which could result in a non-cash impairment charge in the future. The changes in the carrying amount of goodwill for the year ended December 31, 2019 and the six months ended June 30, 2020 are summarized as follows: Americas MEAP Consolidated Balance as of January 1, 2019 $ 166.5 $ 66.3 $ 232.8 Foreign currency impact — (0.3 ) (0.3 ) Balance as of December 31, 2019 166.5 66.0 232.5 Foreign currency impact — (0.5 ) (0.5 ) Balance as of June 30, 2020 $ 166.5 $ 65.5 $ 232.0 The gross carrying amount, accumulated amortization and net book value of the Company’s intangible assets other than goodwill at June 30, 2020 and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Definite lived intangible assets: Customer relationships $ 9.7 $ (8.2 ) $ 1.5 $ 10.0 $ (8.5 ) $ 1.5 Patents 29.5 (28.8 ) 0.7 29.5 (28.7 ) 0.8 Total 39.2 (37.0 ) 2.2 39.5 (37.2 ) 2.3 Indefinite lived intangible assets: Trademarks and tradenames 95.1 — 95.1 95.3 — 95.3 Distribution network 18.6 — 18.6 18.7 — 18.7 Total 113.7 — 113.7 114.0 — 114.0 Total other intangible assets $ 152.9 $ (37.0 ) $ 115.9 $ 153.5 $ (37.2 ) $ 116.3 Other intangible assets with definite lives are amortized over their estimated useful lives. Amortization expense for the three months ended June 30, 2020 and 2019 was $0.1 million. Amortization expense for the six months ended June 30, 2020 and 2019 was $0.2 million. Definite lived intangible assets and long-lived assets are subject to impairment testing whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The Company considered the impact of the COVID-19 pandemic on each of the Company’s definite lived intangible assets and long-lived assets. The Company determined there was not a triggering event during the second quarter of 2020. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 10. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses at June 30, 2020 and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Trade accounts payable $ 177.9 $ 187.1 Employee-related expenses 40.3 56.6 Accrued vacation 23.9 20.2 Miscellaneous accrued expenses 90.5 76.9 Total $ 332.6 $ 340.8 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt Outstanding debt at June 30, 2020 and December 31, 2019 is summarized as follows: June 30, 2020 December 31, 2019 Borrowings under senior secured asset based revolving credit facility $ 50.0 $ — Senior secured second lien notes due 2026 300.0 300.0 Other 15.4 16.7 Deferred financing costs (4.2 ) (4.5 ) Total debt 361.2 312.2 Short-term borrowings and current portion of long-term debt (4.3 ) (3.8 ) Long-term debt $ 356.9 $ 308.4 On March 25, 2019, the Company and certain of its subsidiaries entered into an indenture with U.S. Bank National Association as trustee and notes collateral agent, pursuant to which the Company issued $300.0 million aggregate principal amount senior secured second lien notes due on April 1, 2026 with an annual coupon rate of 9.000%. Interest on the 2026 Notes is payable in cash semi-annually in arrears on April 1 and October 1 of each year. The 2026 Notes are fully and unconditionally guaranteed on a senior secured second lien basis, jointly and severally, by each of the Company’s existing and future domestic subsidiaries that is either a guarantor or a borrower under the ABL Revolving Credit Facility (as defined below) or that guarantees certain other debt of the Company or a guarantor. The 2026 Notes and the related guarantees are secured on a second-priority basis, subject to certain exceptions and permitted liens, by pledges of capital stock and other equity interests and other security interests in substantially all of the personal property and fee-owned real property of the Company and of the guarantors that secure obligations under the ABL Revolving Credit Facility. The 2026 Notes were sold pursuant to exemptions from registration under the Securities Act of 1933 . Additionally, on March 25, 2019, the Company and certain subsidiaries of the Company (the “Loan Parties”) entered into a credit agreement (the “ABL Credit Agreement”) with JP Morgan Chase Bank, N.A as administrative and collateral agent, and certain financial institutions party thereto as lenders, providing for a senior secured asset-based revolving credit facility (the “ABL Revolving Credit Facility”) of up to $275.0 million. The borrowing capacity under the ABL Revolving Credit Facility is based on the value of inventory, accounts receivable and fixed assets of the Loan Parties. The Loan Parties’ obligations under the ABL Revolving Credit Facility are secured on a first-priority bases, subject to certain exceptions and permitted liens, by substantially all of the personal property and fee-owned real property of the Loan Parties. The liens securing the ABL Revolving Credit Facility are senior in priority to the second-priority liens securing the obligations under the 2026 Notes and the related guarantees. The ABL Revolving Credit Facility has a term of 5 years and includes a $75.0 million letter of credit sub-facility, $10.0 million of which is available to the Company’s German subsidiary that is a borrower under the ABL Revolving Credit Facility Borrowings under the ABL Revolving Credit Facility bear interest at a variable rate using either the Alternative Base Rate or the Eurodollar and Overnight London Interbank Offered Rate (“LIBOR”). The variable interest rate is based upon the average availability as of the most recent determination date as follows: Average quarterly availability Alternative base rate spread Eurodollar and overnight LIBOR spread ≥ 50% of Aggregate Commitment 0.25% 1.25% < 50% of Aggregate Commitment 0.50% 1.50% The Company used the initial extension of credit under the ABL Revolving Credit Facility, together with the net proceeds from the offering of the 2026 Notes, to (i) redeem all of the Company’s $260.0 million in outstanding 12.750% Senior Secured Second Lien Notes due 2021 (the “Prior 2021 Notes”); (ii) repay all obligations outstanding, and terminate all commitments, under (x) the Company’s previous $225.0 million ABL Revolving Credit Facility (“Prior ABL Facility”) and (y) $75.0 million AR Securitization Facility; and (iii) pay related fees and expenses, including $16.6 million of call premium on the Prior 2021 Notes, $5.0 million of closing costs and $4.6 million of accrued interest. During the six months ended June 30, 2019, the Company recorded a $25.0 million charge in the Condensed Consolidated Statement of Operations associated with the Company’s refinancing of the ABL Revolving Credit Facility and 2026 Notes. The charge was composed of $16.6 million of call premium on the Prior 2021 Notes, $5.3 million of unamortized discount on the Prior 2021 Notes and $3.1 million of unamortized debt issuance costs. As of June 30, 2020, the Company had other indebtedness outstanding of $15.4 million that had a weighted-average interest rate of approximately 5.13%. This debt includes balances on local credit lines and other financing arrangements. At June 30, 2020 and December 31, 2019 the Company had $50.0 million and no borrowings on the ABL Revolving Credit Facility, respectively. During the quarter ended June 30, 2020, the highest daily borrowing under the ABL Revolving Credit Facility was $50.0 million and the average amount borrowed was $27.5 million, while the average annual interest rate was 1.82%. The interest rate spread of the ABL Revolving Credit Facility fluctuates based on excess availability. As of June 30, 2020, the spreads for LIBOR and prime rate borrowings were 1.25% and 0.25%, respectively, with excess availability of approximately $207.8 million, which represents revolver borrowing capacity of $260.8 million less U.S. letters of credit outstanding of $3.0 million and $50.0 million in borrowings. Both the ABL Revolving Credit Facility and the 2026 Notes include customary covenants which include, without limitation, restrictions on, the Company’s ability and the ability of the Company’s restricted subsidiaries to incur, assume or guarantee additional debt or issue certain preferred shares, pay dividends on or make other distributions in respect of the Company’s capital stock or make other restricted payments, make certain investments, sell or transfer certain assets, create liens on certain assets to secure debt, consolidate, merge, sell, or otherwise dispose of all or substantially all of the Company’s assets, enter into certain transactions with affiliates and designate the Company’s subsidiaries as unrestricted. Both the ABL Revolving Credit Facility and the 2026 Notes also include customary events of default. The ABL Revolving Credit Facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in the Company’s business or financial condition since December 31, 2018. Additionally, the ABL Revolving Credit Facility contains a covenant requiring the Company to maintain a minimum fixed charge coverage ratio under certain circumstances set forth in the ABL Credit Agreement. As of June 30, 2020, the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the ABL Revolving Credit Facility and 2026 Notes. Based upon management’s current plans and outlook, the Company believes it will be able to comply with these covenants during the subsequent twelve months. |
Accounts Receivable Securitizat
Accounts Receivable Securitization and Other Factoring Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
Transfers And Servicing [Abstract] | |
Accounts Receivable Securitization and Other Factoring Arrangements | 12. Accounts Receivable Securitization and Other Factoring Arrangements The Company had maintained a Receivables Purchase Agreement (“RPA”) among Manitowoc Funding, LLC (“MTW Funding”), as Seller, The Manitowoc Company, Inc., as Servicer, and Wells Fargo Bank, N.A., as Purchaser and as Agent, with a commitment size of $75.0 million. Under the RPA (and the related Purchase and Sale Agreements referenced in the RPA), the Company’s domestic trade accounts receivable were sold to MTW Funding which, in turn, sold, conveyed, transferred and assigned to a third-party financial institution (“Purchaser”), all of MTW Funding’s rights, title and interest in a pool of receivables to the Purchaser. Transactions under the program were accounted for as sales in accordance with Accounting Standards Codification Topic 860, “Transfers and Servicing,” (“Topic 860”). This program was terminated on March 25, 2019. Trade accounts receivable sold to the Purchaser and being serviced by the Company totaled zero and $149.0 million for the three and six months ended June 30, 2019, respectively. Cash proceeds received from customers related to the receivables previously sold for the three and six months ended June 30, 2019 were zero Proceeds received from the sale of trade receivables under the program were included in cash flows from operating activities; whereas cash collections related to the deferred purchase price were classified as cash flows from investing activities in the accompanying Condensed Consolidated Statements of Cash Flows. The Company has two non-U.S. accounts receivable financing programs with maximum availability of €55.0 million. , 2020, the Company sold receivables and received cash of €59.3 million. The Company also has one U.S. accounts receivable financing program with maximum availability of $35.0 million. Transactions under the U.S. and non-U.S. programs were accounted for as sales in accordance with Topic 860. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes For the three months ended June 30, 2020 and 2019, the Company recorded a provision for income taxes of $0.7 million and $3.9 million, respectively. For the six months ended June 30, 2020 and 2019, the Company recorded a provision for income taxes of $2.6 million and $7.2 million, respectively. During the three months ended June 30, 2020, net discrete tax benefits of $2.5 million were recorded primarily driven by the implementation of certain U.S. tax planning strategies as a result of the enactment of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). The year over year decrease in the Company’s provision for income taxes for the three and six months ended June 30, 2020 primarily relates to the net discrete tax benefit recorded. The CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act allowed the Company to implement certain U.S. tax planning strategies which resulted in the Company filing an amended 2018 tax return during the three months ended June 30, 2020 and recognized a net tax benefit of $3.7 million for the three and six months ended June 30, 2020. The Company will continue to evaluate its valuation allowance requirements on an ongoing basis considering changing facts and circumstances and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes will be reflected in the Company’s income tax provision and could have a material effect on financial results. The Company’s unrecognized tax benefits, excluding interest and penalties, were $22.6 million and $11.5 million as of June 30, 2020 and December 31, 2019, respectively. The increase primarily relates to $10.9 million from the uncertainty of a portion of the U.S. federal tax planning strategies implemented as a result of the CARES Act. It is reasonably possible that the Company will reverse a portion of its unrecognized tax benefits in the future. Such changes will be reflected in the Company’s income tax provision and could have a material effect on financial results. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 1 4 . Net Income ( Loss) Per Share The following is a reconciliation of the average shares outstanding used to compute basic and diluted income (loss) per common share: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic weighted average common shares outstanding 34,519,889 35,595,718 34,827,582 35,619,145 Effect of dilutive securities — 130,190 — 179,944 Diluted weighted average common shares outstanding 34,519,889 35,725,908 34,827,582 35,799,089 Equity incentive instruments for which total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net earnings, and accordingly, the Company excludes them from the calculation. Anti-dilutive equity instruments of 1,515,430 and 1,556,298 common shares were excluded from the computation of diluted net income (loss) per common share for the three and six months ended June 30, 2019, respectively. Due to the net loss incurred during the three and six months ended June 30, 2020, the assumed exercise of all equity instruments was anti-dilutive and, therefore, not included in the net diluted income (loss) per share calculations for those periods. No cash dividends were paid during the three and six months ended June 30, 2020 and 2019. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Equity | 15. Equity Authorized capital consists of 75.0 million shares of $0.01 par value common stock and 3.5 million shares of $0.01 par value preferred stock. None of the preferred shares have been issued. As of June 30, 2020, the Company has authorization from the Board of Directors to purchase up to $30.0 million of the Company’s common stock at management’s discretion. During the six months ended June 30, 2020, the Company repurchased 1,061,711 of the Company’s common shares for $12.0 million under this authorization. As a result of the COVID-19 pandemic, the Company suspended its share repurchase program to preserve its liquidity and manage cash flows. As of June 30, 2020, the Company had $10.6 million remaining under this authorization. A reconciliation of the changes in accumulated other comprehensive loss, net of income tax, by component for the three months ended June 30, 2020 and 2019 are summarized as follows: Gains and Losses on Cash Flow Hedges Pension & Postretirement Foreign Currency Translation Total Balance at March 31, 2019 $ (0.2 ) $ (35.7 ) $ (82.6 ) $ (118.5 ) Other comprehensive income (loss) before reclassifications (0.3 ) 0.1 1.2 1.0 Amounts reclassified from accumulated other comprehensive loss 0.9 0.4 — 1.3 Net other comprehensive income 0.6 0.5 1.2 2.3 Balance at June 30, 2019 $ 0.4 $ (35.2 ) $ (81.4 ) $ (116.2 ) Balance at March 31, 2020 $ — $ (38.7 ) $ (94.7 ) $ (133.4 ) Other comprehensive income before reclassifications (0.1 ) 0.5 8.6 9.0 Amounts reclassified from accumulated other comprehensive loss 0.2 0.1 — 0.3 Net other comprehensive income 0.1 0.6 8.6 9.3 Balance at June 30, 2020 $ 0.1 $ (38.1 ) $ (86.1 ) $ (124.1 ) A reconciliation of the changes in accumulated other comprehensive loss, net of tax, by component for the six months ended June 30, 20 20 and 2019 are summarized as follows: Gains and Losses on Cash Flow Hedges Pension & Postretirement Foreign Currency Translation Total Balance at December 31, 2018 $ (0.3 ) $ (36.2 ) $ (80.1 ) $ (116.6 ) Other comprehensive income (loss) before reclassifications (1.0 ) 0.2 (1.3 ) (2.1 ) Amounts reclassified from accumulated other comprehensive loss 1.7 0.8 — 2.5 Net other comprehensive income (loss) 0.7 1.0 (1.3 ) 0.4 Balance at June 30, 2019 $ 0.4 $ (35.2 ) $ (81.4 ) $ (116.2 ) Balance at December 31, 2019 — (39.9 ) (81.1 ) (121.0 ) Other comprehensive income (loss) before reclassifications (0.2 ) 1.0 (5.0 ) (4.2 ) Amounts reclassified from accumulated other comprehensive loss 0.3 0.8 — 1.1 Net other comprehensive income (loss) 0.1 1.8 (5.0 ) (3.1 ) Balance at June 30, 2020 $ 0.1 $ (38.1 ) $ (86.1 ) $ (124.1 ) A reconciliation of the reclassifications from accumulated other comprehensive loss, net of income tax, for the three and six months ended June 30, 2020 and 2019 are summarized as follows: Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Recognized Location Losses on cash flow hedges FX Forward Contracts $ (0.2 ) $ (0.9 ) $ (0.3 ) $ (1.7 ) Cost of sales Total before income taxes (0.2 ) (0.9 ) (0.3 ) (1.7 ) Income tax provision — — — — Total, net of income taxes $ (0.2 ) $ (0.9 ) $ (0.3 ) $ (1.7 ) Amortization of pension and postretirement items Actuarial losses $ (1.1 ) $ (1.1 ) $ (2.2 ) $ (2.2 ) (a) Other income (expense) - net Amortization of prior service cost 0.7 0.7 1.4 1.4 (a) Other income (expense) - net Total before income taxes (0.4 ) (0.4 ) (0.8 ) (0.8 ) Income tax benefit 0.3 — — — Total, net of income taxes $ (0.1 ) $ (0.4 ) $ (0.8 ) $ (0.8 ) Total reclassifications for the period, net of income taxes $ (0.3 ) $ (1.3 ) $ (1.1 ) $ (2.5 ) (a) These accumulated other comprehensive loss components are components of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details). |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 16. Stock-Based Compensation Long-term incentive compensation awards may be granted to certain eligible employees or non-employee directors. A detailed description of the awards granted prior to 2020 is included in the Company’s 2019 Annual Report on Form 10-K. Stock-based compensation expense was $2.5 million and $3.0 million for the three months ended June 30, 2020 and 2019, respectively. Stock-based compensation expense was $5.9 million and $6.1 million for the six months ended June 30, 2020 and 2019, respectively. The Company recognizes stock-based compensation expense over the award’s vesting period, subject to retirement, death or disability provisions of the 2013 Plan. No options to acquire shares of common stock were granted to employees during the three months ended June 30, 2020 and 2019. Options to acquire 250,432 and 210,243 shares of common stock were granted to employees during the six months ended June 30, 2020 and 2019, respectively. The options granted become exercisable in three annual increments over a three-year During the three months ended June 30, 2020 and 2019, 28,070 and 2,000 restricted stock units, respectively, were issued to employees. A total of 305,519 and 178,371 restricted stock units, respectively, were issued to employees during the six months ended June 30, 2020 and 2019, respectively. The restricted stock units granted to employees vest in three annual increments over a three-year During the three months ended June 30, 2020 and 2019, 6,711 and zero performance shares, respectively, were issued to employees. A total of 328,310 and 228,037 performance shares were issued during the six months ended June 30, 2020 and 2019, respectively. Performance shares cliff vest after three years and are earned based on the extent to which performance goals are met over the applicable performance period. The performance goals and the applicable performance period vary for each grant year. The performance goals for the performance shares granted in 2020 are based 100% on the 3-year average of the Company’s Adjusted EBITDA percentage from continuing operations from 2020 to 2022 and can be modified +/-20% based on total shareholder return relative to a defined peer group of companies during the three-year three-year The Company did not issue any equity awards to directors during the three months ended June 30, 2020 and 2019. A total of 77,608 and 50,673 equity awards were issued to directors during the six months ended June 30, 2020 and 2019, respectively. The 2020 and 2019 equity awards vested immediately upon the grant date. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | 17. Segments The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by the Chief Executive Officer, who is also the Company’s Chief Operating Decision Maker (“CODM”), for making decisions about the allocation of resources and assessing performance as the source of the Company’s reportable operating segments. The Company has three reportable segments: Americas, EURAF, and MEAP. The Americas operating segment includes the North America and South America continents. The EURAF operating segment includes the Europe and Africa continents, excluding the Middle East region. The MEAP operating segment includes the Asia and Australia continents and the Middle East region. The CODM evaluates the performance of its reportable segments based on net sales and operating income. Segment net sales are recognized in the geographic region the product is sold. Operating income for each segment includes net sales to third parties, cost of sales directly attributable to the segment, and operating expenses directly attributable to the segment. Manufacturing variances generated within each operating segment are maintained in each segment’s operating income. Operating income for each segment excludes other income and expense and certain expenses managed outside the operating segments. Costs excluded from segment operating income include various corporate expenses such as stock-based compensation expenses, income taxes, nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany sales between segments for management reporting purposes. The Company’s operating segments were identified as its reportable segments. The following table shows information by reportable segment for the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Sales Americas $ 149.6 $ 264.6 $ 305.8 $ 470.7 EURAF 135.5 182.6 258.4 336.8 MEAP 43.2 57.5 93.3 115.2 Total $ 328.3 $ 504.7 $ 657.5 $ 922.7 Segment Operating Income (Loss) Americas $ 4.8 $ 35.7 $ 13.9 $ 50.9 EURAF (4.4 ) 1.7 (4.8 ) 5.1 MEAP 6.6 5.1 12.9 12.4 Total $ 7.0 $ 42.5 $ 22.0 $ 68.4 Depreciation Americas $ 4.0 $ 3.5 $ 8.0 $ 7.1 EURAF 3.9 3.7 7.7 7.4 MEAP 0.5 0.7 1.0 1.4 Corporate 0.7 0.7 1.4 1.5 Total $ 9.1 $ 8.6 $ 18.1 $ 17.4 Capital Expenditures Americas $ 1.2 $ 3.2 $ 1.5 $ 6.0 EURAF 3.1 1.6 6.4 2.4 MEAP 0.1 0.5 0.1 1.3 Corporate — — — — Total $ 4.4 $ 5.3 $ 8.0 $ 9.7 A reconciliation of the Company’s segment operating income to operating income (loss) in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2020 and 2019 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Segment operating income $ 7.0 $ 42.5 $ 22.0 $ 68.4 Unallocated corporate expenses (8.6 ) (0.6 ) (17.9 ) (10.2 ) Unallocated restructuring expense — — — (0.1 ) Total operating income (loss) $ (1.6 ) $ 41.9 $ 4.1 $ 58.1 Net sales by geographic area for the three and six months ended June 30, 2020 and 2019 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 United States $ 133.5 $ 233.0 $ 276.2 $ 417.7 Europe 133.5 174.1 253.0 323.2 Other 61.3 97.6 128.3 181.8 Total net sales $ 328.3 $ 504.7 $ 657.5 $ 922.7 Net sales by product for the three and six months ended June 30, 2020 and 2019 are summarized as follows : Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cranes $ 259.5 $ 418.0 $ 508.1 $ 751.5 Aftermarket parts and other* 68.8 86.7 149.4 171.2 Total net sales $ 328.3 $ 504.7 $ 657.5 $ 922.7 *Other revenue consists of revenue related to CraneCare services such as training and field service work. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies The Company is involved in various legal actions arising out of the normal course of business, which, taking into account the liabilities accrued and legal counsel’s evaluation of such actions, in the opinion of management, the ultimate resolution, individually and in the aggregate, is not expected to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. As of June 30, 2020, various product-related lawsuits were pending. To the extent permitted under applicable law, all of these are insured with self-insurance retention levels. The Company’s self-insurance retention levels vary by business and have fluctuated over the last 10 years. As of June 30, 2020, the largest self-insured retention level for new occurrences currently maintained by the Company is $2.0 million per occurrence and applies to product liability claims for cranes manufactured in the United States. Product liability reserves, recorded within other liabilities in the Condensed Consolidated Balance Sheets at June 30, 2020 and December 31, 2019 were $11.6 million and $12.8 million, respectively. These reserves were estimated using a combination of actual case reserves and actuarial methods. Based on the Company’s experience in defending product liability claims, management believes the current reserves are adequate for estimated case resolutions on aggregate self-insured claims and insured claims. Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers. The Company is involved in numerous lawsuits involving asbestos-related claims in which the Company is one of numerous defendants. After taking into consideration legal counsel’s evaluation of such actions, the current political environment with respect to asbestos related claims, and the liabilities accrued with respect to such matters, in the opinion of management, ultimate resolution is not expected to have a material adverse effect on the financial condition, results of operations, or cash flows of the Company. At June 30, 2020 and December 31, 2019, the Company had reserved $60.1 million and $60.6 million, respectively, for warranty claims included in product warranties and other non-current liabilities in the Condensed Consolidated Balance Sheets. Certain of these warranty and other related claims involve legal matters in dispute that ultimately are resolved by negotiation, arbitration, or litigation. See Note 19, “Guarantees,” for further information. During the three months ended June 30, 2019, the Company settled a legal matter resulting in a net $24.7 million gain. The Company recorded this settlement by recognizing income of $15.5 million in other income (expense) - net and a benefit of $9.2 million in engineering, selling and administrative expenses in the Condensed Consolidated Statements of Operations. It is reasonably possible that the estimates for warranty costs, product liability, environmental remediation, asbestos-related claims and other various legal matters may change based upon new information that may arise or matters that are beyond the scope of the Company’s historical experience. Presently, there are no reliable methods to estimate the amount of any such potential changes. |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2020 | |
Guarantees [Abstract] | |
Guarantees | 19. Guarantees The Company periodically enters into transactions with customers that provide for buyback commitments. The Company evaluates each agreement at inception to determine if the customer has a significant economic incentive to exercise the buyback option. If it is determined that the customer has a significant economic incentive to exercise that right, the revenue is deferred and the agreement is accounted for as a lease in accordance with Accounting Standards Codification Topic 842 – “Leases” (“Topic 842”). If it is determined that the customer does not have a significant economic incentive to exercise that right, then revenue is recognized when control of the product is transferred to the customer. The revenue deferred related to buyback obligations accounted for under Topic 842 included in other current and non-current liabilities as of June 30, 2020 and December 31, 2019 was $33.4 million and $34.1 million, respectively. The total amount of buyback commitments given by the Company and outstanding as of June 30, 2020 and December 31, 2019 was $18.1 million and $17.3 million, respectively. These amounts are not reduced for amounts the Company would recover from the repossession and subsequent resale of the cranes . The buyback commitments expire at various times through 202 7 . The Company also has various loss guarantees with maximum liabilit ies of $ 17.1 million and $ 11.3 million as of June 30, 2020 and December 31, 2019, respectively. These amounts are not reduced for amounts the Company would recover from the repossession and subsequent resale of the cranes. In the normal course of business, the Company provides its customers a warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranties generally provide that products will be free from defects for periods ranging from 12 months to 60 months. If a product fails to comply with the Company’s warranty, the Company may be obligated, at its expense, to correct any defect by repairing or replacing such defective products. The Company provides for an estimate of costs that may be incurred under its warranty at the time product revenue is recognized. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect the Company’s warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. The revenue deferred related to warranties included in other current and non-current liabilities as of June 30, 2020 and December 31, 2019 was $5.8 million and $3.9 million, Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance at beginning of period $ 59.7 $ 45.7 $ 60.6 $ 47.8 Accruals for warranties issued during the period 7.5 13.1 16.1 20.1 Settlements made (in cash or in kind) during the period (7.8 ) (7.7 ) (16.6 ) (16.5 ) Currency translation 0.7 0.2 — (0.1 ) Balance at end of period 60.1 51.3 60.1 51.3 Long-term warranty reserve (14.3 ) (8.9 ) (14.3 ) (8.9 ) Product warranties $ 45.8 $ 42.4 $ 45.8 $ 42.4 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 20. Restructuring During the three months ended June 30, 2020 and 2019, the Company incurred $0.2 million and $2.7 million of restructuring expense, respectively. During the six months ended June 30, 2020 and 2019, the Company incurred $1.7 million and $7.2 million of restructuring expense, respectively. The expense for the three and six months ended June 30, 2020 related primarily to costs associated with headcount reductions in Europe. Expenses for the three and six months ended June 30, 2019 related primarily to headcount reductions in India, Europe and North America. The following is a rollforward of the Company's restructuring accrual, which is included within accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets, for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance at beginning of period $ 2.4 $ 4.6 $ 2.0 $ 3.1 Restructuring expenses 0.2 2.7 1.7 7.2 Use of reserve (0.7 ) (4.2 ) (1.8 ) (7.2 ) Balance at end of period $ 1.9 $ 3.1 $ 1.9 $ 3.1 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 21. Employee Benefit Plans The Company provides certain pension, health care and death benefits to eligible retirees and their dependents. The funding mechanism for such benefits varies based on the country where the plan is located. Eligibility for pension coverage is based on retirement qualifications for each of the related plans. Healthcare benefits may be subject to deductibles, co-payments and other limitations. The Company reserves the right to modify benefits unless prohibited by local laws or regulations. The components of periodic benefit cost for the three and six months ended June 30, 2020 and June 30, 2019 are summarized as follows: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Postretirement Postretirement U.S. Non-U.S. Health and U.S. Non-U.S. Health and Pension Pension Other Pension Pension Other Plans Plans Plans Plans Plans Plans Service cost - benefits earned during the period $ — $ 0.5 $ — $ — $ 0.5 $ 0.1 Interest cost of projected benefit obligations 1.0 0.4 0.1 1.3 0.5 0.2 Expected return on plan assets (1.3 ) (0.2 ) — (1.1 ) (0.3 ) — Amortization of prior service cost — — (0.7 ) — — (0.7 ) Amortization of actuarial net loss 0.7 0.4 — 0.8 0.3 — Net periodic benefit cost $ 0.4 $ 1.1 $ (0.6 ) $ 1.0 $ 1.0 $ (0.4 ) Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Postretirement Postretirement U.S. Non-U.S. Health and U.S. Non-U.S. Health and Pension Pension Other Pension Pension Other Plans Plans Plans Plans Plans Plans Service cost - benefits earned during the period $ — $ 1.0 $ 0.1 $ — $ 1.0 $ 0.2 Interest cost of projected benefit obligations 2.0 0.8 0.2 2.6 1.0 0.4 Expected return on plan assets (2.6 ) (0.4 ) — (2.2 ) (0.6 ) — Amortization of prior service cost — — (1.4 ) — — (1.4 ) Amortization of actuarial net loss 1.4 0.8 — 1.6 0.6 — Net periodic benefit cost $ 0.8 $ 2.2 $ (1.1 ) $ 2.0 $ 2.0 $ (0.8 ) The components of net periodic benefit cost other than the service cost component are included in other income (expense) - net in the Condensed Consolidated Statement of Operations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On August 5, 2020 (the “Separation Date”), Barry L. Pennypacker stepped down from his role as President and Chief Executive Officer of the Company and as a member of the Company’s Board of Directors as part of the Company’s leadership transition plan. Effective as of the Separation Date, the Company’s Board of Directors appointed Aaron H. Ravenscroft, formerly the Company’s Executive Vice President of Cranes, to serve as the Company’s President and Chief Executive Officer and as a member of the Company’s Board of Directors. Mr. Pennypacker will continue to serve the Company in an advisory role through December 31, 2020, to ensure a smooth transition. |
Recent Accounting Changes and_2
Recent Accounting Changes and Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Recent Accounting Changes And Pronouncements [Abstract] | |
Recent Accounting Changes and Pronouncements | In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 “Income Taxes (Topic 740).” The amendments in this ASU simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for annual periods beginning after December 15, 2020. The Company is currently evaluating the impact the adoption of the ASU will have on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15 “Intangibles – Goodwill and Other – Internal-use Software (Subtopic 250-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for annual periods beginning after December 15, 2019. The adoption of the ASU did not have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. The new guidance is applicable to financial assets measured at amortized cost, net investments in leases and certain off-balance sheet credit exposures. The standard was effective for annual periods beginning after December 15, 2019. The adoption of the ASU resulted in a $0.2 million reduction in beginning retained earnings and a corresponding reduction in accounts receivable on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2020. There was no material impact to the Company’s Condensed Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Change In Customer Advances Balance | The table below shows the change in the customer advances balance for the three and six months ended June 30, 2020 and 2019 which are included in current liabilities in the Condensed Consolidated Balance Sheets. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance at beginning of period $ 21.0 $ 13.3 $ 25.8 $ 9.6 Cash received or due in advance of satisfying performance obligation 15.9 18.3 44.8 50.2 Revenue recognized (21.6 ) (21.1 ) (54.1 ) (49.4 ) Currency translation 0.5 0.1 (0.7 ) 0.2 Balance at end of period $ 15.8 $ 10.6 $ 15.8 $ 10.6 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy | The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value as of June 30, 2020 and December 31, 2019, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value as of June 30, 2020 Level 1 Level 2 Level 3 Total Recognized Location Forward currency exchange contracts $ — $ 0.1 $ — $ 0.1 Other current assets Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total Recognized Location Forward currency exchange contracts $ — $ 0.1 $ — $ 0.1 Other current assets Forward currency exchange contracts — 0.1 — 0.1 Accounts payable and accrued expenses |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Foreign Currency Exchange Contracts | |
Derivative Instruments Gain Loss [Line Items] | |
Summary of Gains or Losses Recorded in Condensed Consolidated Statement of Operations for FX Forward Contracts | The following table provides the amount of gain or loss recorded in the Condensed Consolidated Statement of Operations for FX Forward Contracts for the three and six months ended June 30, 2020 and June 30, 2019. Three Months Ended June 30, Six Months Ended June 30, Recognized Location 2020 2019 2020 2019 Designated Cost of sales $ 0.2 $ 0.7 $ 0.3 $ 1.5 Non-Designated Other income (expense) - net $ (0.4 ) $ (1.6 ) $ (0.4 ) $ (2.3 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of the components of inventories | The components of inventories as of June 30, 2020 and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Raw materials $ 140.7 $ 156.3 Work-in-process 116.5 116.3 Finished goods 329.7 239.4 Total inventories 586.9 512.0 Excess and obsolete inventory reserve (52.4 ) (50.6 ) Inventories — net $ 534.5 $ 461.4 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of property, plant and equipment at June 30, 2020 and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Land $ 23.2 $ 24.0 Building and improvements 195.6 197.3 Machinery, equipment and tooling 275.3 274.2 Furniture and fixtures 18.8 18.5 Computer hardware and software 117.6 119.3 Rental cranes 75.2 77.7 Construction in progress 10.8 11.2 Total cost 716.5 722.2 Less accumulated depreciation (438.7 ) (432.3 ) Property, plant and equipment — net $ 277.8 $ 289.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in goodwill by reportable segment | The changes in the carrying amount of goodwill for the year ended December 31, 2019 and the six months ended June 30, 2020 are summarized as follows: Americas MEAP Consolidated Balance as of January 1, 2019 $ 166.5 $ 66.3 $ 232.8 Foreign currency impact — (0.3 ) (0.3 ) Balance as of December 31, 2019 166.5 66.0 232.5 Foreign currency impact — (0.5 ) (0.5 ) Balance as of June 30, 2020 $ 166.5 $ 65.5 $ 232.0 |
Gross carrying amount, accumulated amortization and net book value of intangible assets other than goodwill | The gross carrying amount, accumulated amortization and net book value of the Company’s intangible assets other than goodwill at June 30, 2020 and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Definite lived intangible assets: Customer relationships $ 9.7 $ (8.2 ) $ 1.5 $ 10.0 $ (8.5 ) $ 1.5 Patents 29.5 (28.8 ) 0.7 29.5 (28.7 ) 0.8 Total 39.2 (37.0 ) 2.2 39.5 (37.2 ) 2.3 Indefinite lived intangible assets: Trademarks and tradenames 95.1 — 95.1 95.3 — 95.3 Distribution network 18.6 — 18.6 18.7 — 18.7 Total 113.7 — 113.7 114.0 — 114.0 Total other intangible assets $ 152.9 $ (37.0 ) $ 115.9 $ 153.5 $ (37.2 ) $ 116.3 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses at June 30, 2020 and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Trade accounts payable $ 177.9 $ 187.1 Employee-related expenses 40.3 56.6 Accrued vacation 23.9 20.2 Miscellaneous accrued expenses 90.5 76.9 Total $ 332.6 $ 340.8 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Outstanding debt at June 30, 2020 and December 31, 2019 is summarized as follows: June 30, 2020 December 31, 2019 Borrowings under senior secured asset based revolving credit facility $ 50.0 $ — Senior secured second lien notes due 2026 300.0 300.0 Other 15.4 16.7 Deferred financing costs (4.2 ) (4.5 ) Total debt 361.2 312.2 Short-term borrowings and current portion of long-term debt (4.3 ) (3.8 ) Long-term debt $ 356.9 $ 308.4 |
Schedule of revolving credit facility bear interest at variable rate based upon average availability | Borrowings under the ABL Revolving Credit Facility bear interest at a variable rate using either the Alternative Base Rate or the Eurodollar and Overnight London Interbank Offered Rate (“LIBOR”). The variable interest rate is based upon the average availability as of the most recent determination date as follows: Average quarterly availability Alternative base rate spread Eurodollar and overnight LIBOR spread ≥ 50% of Aggregate Commitment 0.25% 1.25% < 50% of Aggregate Commitment 0.50% 1.50% |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of the average shares outstanding used to compute basic and diluted income (loss) per common share | The following is a reconciliation of the average shares outstanding used to compute basic and diluted income (loss) per common share: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic weighted average common shares outstanding 34,519,889 35,595,718 34,827,582 35,619,145 Effect of dilutive securities — 130,190 — 179,944 Diluted weighted average common shares outstanding 34,519,889 35,725,908 34,827,582 35,799,089 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | A reconciliation of the changes in accumulated other comprehensive loss, net of income tax, by component for the three months ended June 30, 2020 and 2019 are summarized as follows: Gains and Losses on Cash Flow Hedges Pension & Postretirement Foreign Currency Translation Total Balance at March 31, 2019 $ (0.2 ) $ (35.7 ) $ (82.6 ) $ (118.5 ) Other comprehensive income (loss) before reclassifications (0.3 ) 0.1 1.2 1.0 Amounts reclassified from accumulated other comprehensive loss 0.9 0.4 — 1.3 Net other comprehensive income 0.6 0.5 1.2 2.3 Balance at June 30, 2019 $ 0.4 $ (35.2 ) $ (81.4 ) $ (116.2 ) Balance at March 31, 2020 $ — $ (38.7 ) $ (94.7 ) $ (133.4 ) Other comprehensive income before reclassifications (0.1 ) 0.5 8.6 9.0 Amounts reclassified from accumulated other comprehensive loss 0.2 0.1 — 0.3 Net other comprehensive income 0.1 0.6 8.6 9.3 Balance at June 30, 2020 $ 0.1 $ (38.1 ) $ (86.1 ) $ (124.1 ) A reconciliation of the changes in accumulated other comprehensive loss, net of tax, by component for the six months ended June 30, 20 20 and 2019 are summarized as follows: Gains and Losses on Cash Flow Hedges Pension & Postretirement Foreign Currency Translation Total Balance at December 31, 2018 $ (0.3 ) $ (36.2 ) $ (80.1 ) $ (116.6 ) Other comprehensive income (loss) before reclassifications (1.0 ) 0.2 (1.3 ) (2.1 ) Amounts reclassified from accumulated other comprehensive loss 1.7 0.8 — 2.5 Net other comprehensive income (loss) 0.7 1.0 (1.3 ) 0.4 Balance at June 30, 2019 $ 0.4 $ (35.2 ) $ (81.4 ) $ (116.2 ) Balance at December 31, 2019 — (39.9 ) (81.1 ) (121.0 ) Other comprehensive income (loss) before reclassifications (0.2 ) 1.0 (5.0 ) (4.2 ) Amounts reclassified from accumulated other comprehensive loss 0.3 0.8 — 1.1 Net other comprehensive income (loss) 0.1 1.8 (5.0 ) (3.1 ) Balance at June 30, 2020 $ 0.1 $ (38.1 ) $ (86.1 ) $ (124.1 ) |
Reconciliation of reclassifications from accumulated other comprehensive income (loss), net of income tax | A reconciliation of the reclassifications from accumulated other comprehensive loss, net of income tax, for the three and six months ended June 30, 2020 and 2019 are summarized as follows: Amount Reclassified from Accumulated Other Comprehensive Loss Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Recognized Location Losses on cash flow hedges FX Forward Contracts $ (0.2 ) $ (0.9 ) $ (0.3 ) $ (1.7 ) Cost of sales Total before income taxes (0.2 ) (0.9 ) (0.3 ) (1.7 ) Income tax provision — — — — Total, net of income taxes $ (0.2 ) $ (0.9 ) $ (0.3 ) $ (1.7 ) Amortization of pension and postretirement items Actuarial losses $ (1.1 ) $ (1.1 ) $ (2.2 ) $ (2.2 ) (a) Other income (expense) - net Amortization of prior service cost 0.7 0.7 1.4 1.4 (a) Other income (expense) - net Total before income taxes (0.4 ) (0.4 ) (0.8 ) (0.8 ) Income tax benefit 0.3 — — — Total, net of income taxes $ (0.1 ) $ (0.4 ) $ (0.8 ) $ (0.8 ) Total reclassifications for the period, net of income taxes $ (0.3 ) $ (1.3 ) $ (1.1 ) $ (2.5 ) (a) These accumulated other comprehensive loss components are components of net periodic pension cost (see Note 21, “Employee Benefit Plans,” for further details). |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Information by Reportable Segment | The following table shows information by reportable segment for the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Sales Americas $ 149.6 $ 264.6 $ 305.8 $ 470.7 EURAF 135.5 182.6 258.4 336.8 MEAP 43.2 57.5 93.3 115.2 Total $ 328.3 $ 504.7 $ 657.5 $ 922.7 Segment Operating Income (Loss) Americas $ 4.8 $ 35.7 $ 13.9 $ 50.9 EURAF (4.4 ) 1.7 (4.8 ) 5.1 MEAP 6.6 5.1 12.9 12.4 Total $ 7.0 $ 42.5 $ 22.0 $ 68.4 Depreciation Americas $ 4.0 $ 3.5 $ 8.0 $ 7.1 EURAF 3.9 3.7 7.7 7.4 MEAP 0.5 0.7 1.0 1.4 Corporate 0.7 0.7 1.4 1.5 Total $ 9.1 $ 8.6 $ 18.1 $ 17.4 Capital Expenditures Americas $ 1.2 $ 3.2 $ 1.5 $ 6.0 EURAF 3.1 1.6 6.4 2.4 MEAP 0.1 0.5 0.1 1.3 Corporate — — — — Total $ 4.4 $ 5.3 $ 8.0 $ 9.7 |
Schedule of Reconciliation of the Company's Segment Operating Income | A reconciliation of the Company’s segment operating income to operating income (loss) in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2020 and 2019 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Segment operating income $ 7.0 $ 42.5 $ 22.0 $ 68.4 Unallocated corporate expenses (8.6 ) (0.6 ) (17.9 ) (10.2 ) Unallocated restructuring expense — — — (0.1 ) Total operating income (loss) $ (1.6 ) $ 41.9 $ 4.1 $ 58.1 |
Schedule of Net Sales by Geographic Area | Net sales by geographic area for the three and six months ended June 30, 2020 and 2019 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 United States $ 133.5 $ 233.0 $ 276.2 $ 417.7 Europe 133.5 174.1 253.0 323.2 Other 61.3 97.6 128.3 181.8 Total net sales $ 328.3 $ 504.7 $ 657.5 $ 922.7 |
Schedule of Net Sales By Product | Net sales by product for the three and six months ended June 30, 2020 and 2019 are summarized as follows : Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cranes $ 259.5 $ 418.0 $ 508.1 $ 751.5 Aftermarket parts and other* 68.8 86.7 149.4 171.2 Total net sales $ 328.3 $ 504.7 $ 657.5 $ 922.7 *Other revenue consists of revenue related to CraneCare services such as training and field service work. |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Guarantees [Abstract] | |
Summary of Warranty Activity | Below is a table summarizing the warranty activity for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance at beginning of period $ 59.7 $ 45.7 $ 60.6 $ 47.8 Accruals for warranties issued during the period 7.5 13.1 16.1 20.1 Settlements made (in cash or in kind) during the period (7.8 ) (7.7 ) (16.6 ) (16.5 ) Currency translation 0.7 0.2 — (0.1 ) Balance at end of period 60.1 51.3 60.1 51.3 Long-term warranty reserve (14.3 ) (8.9 ) (14.3 ) (8.9 ) Product warranties $ 45.8 $ 42.4 $ 45.8 $ 42.4 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Rollforward of all restructuring accrual | The following is a rollforward of the Company's restructuring accrual, which is included within accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets, for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance at beginning of period $ 2.4 $ 4.6 $ 2.0 $ 3.1 Restructuring expenses 0.2 2.7 1.7 7.2 Use of reserve (0.7 ) (4.2 ) (1.8 ) (7.2 ) Balance at end of period $ 1.9 $ 3.1 $ 1.9 $ 3.1 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of components of period benefit costs | The components of periodic benefit cost for the three and six months ended June 30, 2020 and June 30, 2019 are summarized as follows: Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Postretirement Postretirement U.S. Non-U.S. Health and U.S. Non-U.S. Health and Pension Pension Other Pension Pension Other Plans Plans Plans Plans Plans Plans Service cost - benefits earned during the period $ — $ 0.5 $ — $ — $ 0.5 $ 0.1 Interest cost of projected benefit obligations 1.0 0.4 0.1 1.3 0.5 0.2 Expected return on plan assets (1.3 ) (0.2 ) — (1.1 ) (0.3 ) — Amortization of prior service cost — — (0.7 ) — — (0.7 ) Amortization of actuarial net loss 0.7 0.4 — 0.8 0.3 — Net periodic benefit cost $ 0.4 $ 1.1 $ (0.6 ) $ 1.0 $ 1.0 $ (0.4 ) Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Postretirement Postretirement U.S. Non-U.S. Health and U.S. Non-U.S. Health and Pension Pension Other Pension Pension Other Plans Plans Plans Plans Plans Plans Service cost - benefits earned during the period $ — $ 1.0 $ 0.1 $ — $ 1.0 $ 0.2 Interest cost of projected benefit obligations 2.0 0.8 0.2 2.6 1.0 0.4 Expected return on plan assets (2.6 ) (0.4 ) — (2.2 ) (0.6 ) — Amortization of prior service cost — — (1.4 ) — — (1.4 ) Amortization of actuarial net loss 1.4 0.8 — 1.6 0.6 — Net periodic benefit cost $ 0.8 $ 2.2 $ (1.1 ) $ 2.0 $ 2.0 $ (0.8 ) |
Accounting Policies and Basis_2
Accounting Policies and Basis of Presentation - Narrative (Details) crane in Thousands | 6 Months Ended |
Jun. 30, 2020cranesegment | |
Accounting Policies [Abstract] | |
Period of providing high-quality, customer-focused products and support services | 117 years |
Number of cranes serviced | crane | 149 |
Number of reportable segments | segment | 3 |
Recent Accounting Changes and_3
Recent Accounting Changes and Pronouncements - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Reduction in accounts receivable | $ 6.4 | $ 222.6 |
ASU 2016-13 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Reduction in beginning retained earnings | 0.2 | |
Reduction in accounts receivable | $ 0.2 |
Revenues - Schedule of Change I
Revenues - Schedule of Change In Customer Advances Balance (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | ||||
Balance at beginning of period | $ 21 | $ 13.3 | $ 25.8 | $ 9.6 |
Cash received or due in advance of satisfying performance obligation | 15.9 | 18.3 | 44.8 | 50.2 |
Revenue recognized | (21.6) | (21.1) | (54.1) | (49.4) |
Currency translation | 0.5 | 0.1 | (0.7) | 0.2 |
Balance at end of period | $ 15.8 | $ 10.6 | $ 15.8 | $ 10.6 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial assets and liabilities accounted for at fair value on a recurring basis by level within the fair value hierarchy (Details) - Estimate of Fair Value Measurement - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Foreign Currency Exchange Contracts | Other Current Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets, current | $ 0.1 | |
Forward Currency Exchange Contracts | Other Current Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets, current | $ 0.1 | |
Forward Currency Exchange Contracts | Accounts Payable and Accrued Expenses | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative liabilities, current | 0.1 | |
Level 2 | Foreign Currency Exchange Contracts | Other Current Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets, current | $ 0.1 | |
Level 2 | Forward Currency Exchange Contracts | Other Current Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets, current | 0.1 | |
Level 2 | Forward Currency Exchange Contracts | Accounts Payable and Accrued Expenses | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative liabilities, current | $ 0.1 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - Senior Notes Due 2026 - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Mar. 25, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt instruments at fair value | $ 299 | |
Interest rate, stated percentage (as a percent) | 9.00% | 9.00% |
Debt instrument maturity date | Apr. 1, 2026 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Derivatives Fair Value [Line Items] | ||
Unrealized (losses) net of tax | $ (0.1) | $ 0 |
Foreign Exchange Forward | ||
Derivatives Fair Value [Line Items] | ||
Derivative, notional amount | $ 9.6 | 32.6 |
Derivative remaining maturity period | 1 year | |
Derivative net current liability | $ 0.1 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Gain or Losses Recorded in Condensed Consolidated Statement of Operations for FX Forward Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Designated | Cost of Sales | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Designated | $ 0.2 | $ 0.7 | $ 0.3 | $ 1.5 |
Non-Designated | Other Income (Expense) - Net | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Designated | $ (0.4) | $ (1.6) | $ (0.4) | $ (2.3) |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 140.7 | $ 156.3 |
Work-in-process | 116.5 | 116.3 |
Finished goods | 329.7 | 239.4 |
Total inventories | 586.9 | 512 |
Excess and obsolete inventory reserve | (52.4) | (50.6) |
Inventories — net | $ 534.5 | $ 461.4 |
Notes Receivable - Narrative (D
Notes Receivable - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Notes receivable, current | $ 14 | $ 17.4 |
Notes receivable, long term | $ 14.8 | $ 16.3 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of property, plant and equipment (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Total cost | $ 716.5 | $ 722.2 |
Less accumulated depreciation | (438.7) | (432.3) |
Property, plant and equipment — net | 277.8 | 289.9 |
Land | ||
Property, Plant and Equipment | ||
Total cost | 23.2 | 24 |
Building and Improvements | ||
Property, Plant and Equipment | ||
Total cost | 195.6 | 197.3 |
Machinery, Equipment and Tooling | ||
Property, Plant and Equipment | ||
Total cost | 275.3 | 274.2 |
Furniture and Fixtures | ||
Property, Plant and Equipment | ||
Total cost | 18.8 | 18.5 |
Computer Hardware and Software | ||
Property, Plant and Equipment | ||
Total cost | 117.6 | 119.3 |
Rental Cranes | ||
Property, Plant and Equipment | ||
Total cost | 75.2 | 77.7 |
Construction in Progress | ||
Property, Plant and Equipment | ||
Total cost | $ 10.8 | $ 11.2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in goodwill by reportable segment (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Goodwill | ||
Balance at the beginning of the period | $ 232.5 | $ 232.8 |
Foreign currency impact | (0.5) | (0.3) |
Balance at the end of the period | 232 | 232.5 |
Americas | ||
Goodwill | ||
Balance at the beginning of the period | 166.5 | 166.5 |
Balance at the end of the period | 166.5 | 166.5 |
Middle East and Asia Pacific ("MEAP") | ||
Goodwill | ||
Balance at the beginning of the period | 66 | 66.3 |
Foreign currency impact | (0.5) | (0.3) |
Balance at the end of the period | $ 65.5 | $ 66 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Gross carrying amount and accumulated amortization of the company's intangible assets other than goodwill (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Intangible asset balances by major asset class | ||
Intangible assets, gross (excluding goodwill) | $ 152.9 | $ 153.5 |
Finite-lived intangible assets, amortization amount | (37) | (37.2) |
Intangible assets, book value | 115.9 | 116.3 |
Indefinite-lived Intangible Assets | ||
Intangible asset balances by major asset class | ||
Intangible assets, gross (excluding goodwill) | 113.7 | 114 |
Intangible assets, book value | 113.7 | 114 |
Indefinite-lived Intangible Assets | Distribution Network | ||
Intangible asset balances by major asset class | ||
Finite-lived intangible assets, carrying amount | 18.6 | 18.7 |
Finite-lived intangible assets, book value | 18.6 | 18.7 |
Indefinite-lived Intangible Assets | Trademarks and Tradenames | ||
Intangible asset balances by major asset class | ||
Indefinite-lived intangible assets, book value | 95.1 | 95.3 |
Finite-Lived Intangible Assets | ||
Intangible asset balances by major asset class | ||
Intangible assets, gross (excluding goodwill) | 39.2 | 39.5 |
Finite-lived intangible assets, amortization amount | (37) | (37.2) |
Intangible assets, book value | 2.2 | 2.3 |
Finite-Lived Intangible Assets | Customer Relationships | ||
Intangible asset balances by major asset class | ||
Finite-lived intangible assets, carrying amount | 9.7 | 10 |
Finite-lived intangible assets, amortization amount | (8.2) | (8.5) |
Finite-lived intangible assets, book value | 1.5 | 1.5 |
Finite-Lived Intangible Assets | Patents | ||
Intangible asset balances by major asset class | ||
Finite-lived intangible assets, carrying amount | 29.5 | 29.5 |
Finite-lived intangible assets, amortization amount | (28.8) | (28.7) |
Finite-lived intangible assets, book value | $ 0.7 | $ 0.8 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accured Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Trade accounts payable | $ 177.9 | $ 187.1 |
Employee-related expenses | 40.3 | 56.6 |
Accrued vacation | 23.9 | 20.2 |
Miscellaneous accrued expenses | 90.5 | 76.9 |
Total | $ 332.6 | $ 340.8 |
Debt - Schedule of outstanding
Debt - Schedule of outstanding debt (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 361,200,000 | $ 312,200,000 |
Deferred financing costs | (4,200,000) | (4,500,000) |
Short-term borrowings and current portion of long-term debt | (4,300,000) | (3,800,000) |
Long-term debt | 356,900,000 | 308,400,000 |
ABL Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Borrowings under senior secured asset based revolving credit facility | 50,000,000 | 0 |
Senior Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Total debt | 300,000,000 | 300,000,000 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 15,400,000 | $ 16,700,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Mar. 25, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Mar. 03, 2016 |
Debt Instrument [Line Items] | ||||||
Debt instrument charge from refinancing | $ 25,000,000 | |||||
Unamortized debt issuance costs | $ 4,200,000 | $ 4,200,000 | $ 4,500,000 | |||
Carrying amount | $ 361,200,000 | $ 361,200,000 | 312,200,000 | |||
Period for which the entity will be able to comply with the financial covenants | 12 months | |||||
Senior Notes Due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 300,000,000 | |||||
Debt instrument interest rate | 9.00% | 9.00% | 9.00% | |||
Debt instrument maturity date | Apr. 1, 2026 | |||||
Interest on the notes | Interest on the 2026 Notes is payable in cash semi-annually in arrears on April 1 and October 1 of each year. | |||||
Carrying amount | $ 300,000,000 | $ 300,000,000 | 300,000,000 | |||
ABL Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity under revolving credit facility | $ 275,000,000 | $ 225,000,000 | ||||
Weighted average interest rate (as a percent) | 1.82% | 1.82% | ||||
Line of credit outstanding | $ 50,000,000 | $ 50,000,000 | 0 | |||
Highest daily borrowing | 50,000,000 | |||||
Average borrowing | 27,500,000 | |||||
Excess capacity | 207,800,000 | 207,800,000 | ||||
Line of credit borrowing capacity | 260,800,000 | $ 260,800,000 | ||||
ABL Revolving Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 1.25% | |||||
ABL Revolving Credit Facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 0.25% | |||||
ABL Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt term (in years) | 5 years | |||||
ABL Revolving Credit Facility | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity under revolving credit facility | $ 75,000,000 | |||||
Line of credit outstanding | 3,000,000 | $ 3,000,000 | ||||
ABL Revolving Credit Facility | Letter of Credit | German Borrowers | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity under revolving credit facility | $ 10,000,000 | |||||
Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 12.75% | |||||
Maximum borrowing capacity under revolving credit facility | $ 260,000,000 | |||||
Debt instrument call premium | 16,600,000 | 16,600,000 | ||||
Closing costs of debt | 5,000,000 | |||||
Accrued interest of debt | 4,600,000 | |||||
Debt instrument unamortized discount | 5,300,000 | |||||
Unamortized debt issuance costs | $ 3,100,000 | |||||
AR Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity under revolving credit facility | $ 75,000,000 | |||||
Other | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount | $ 15,400,000 | $ 15,400,000 | $ 16,700,000 | |||
Weighted average interest rate (as a percent) | 5.13% | 5.13% |
Debt - Schedule of Revolving Cr
Debt - Schedule of Revolving Credit Facility Bear Interest at Variable Rate Based Upon Average Availability (Details) - ABL Revolving Credit Facility | 6 Months Ended |
Jun. 30, 2020 | |
Greater Than or Equal to 50% of Aggregate Commitment | Alternative Base Rate Spread | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.25% |
Greater Than or Equal to 50% of Aggregate Commitment | Eurodollar and Overnight LIBOR Spread | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.25% |
Less Than 50% of Aggregate Commitment | Alternative Base Rate Spread | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.50% |
Less Than 50% of Aggregate Commitment | Eurodollar and Overnight LIBOR Spread | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.50% |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization and Other Factoring Arrangements - Narrative (Details) € in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020EUR (€) | Jun. 30, 2019USD ($) | |
Accounts Receivable Securitization | ||||
Accounts receivable balance sold | $ 0 | $ 149,000,000 | ||
Proceeds from collection of receivables | $ 0 | € 59.3 | $ 182,800,000 | |
Maximum availability under these programs | $ 35,000,000 | € 55 | ||
Maximum | ||||
Accounts Receivable Securitization | ||||
Capacity of securitization program | $ 75,000,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||
Provision for income taxes | $ 0.7 | $ 3.9 | $ 2.6 | $ 7.2 | |
Discrete tax benefit | 2.5 | ||||
Recognized tax benefit | 3.7 | 3.7 | |||
Unrecognized tax benefits | 22.6 | 22.6 | $ 11.5 | ||
Increase in uncertainty portion of discrete tax benefit | $ 10.9 | $ 10.9 |
Net Income (Loss) Per Share - R
Net Income (Loss) Per Share - Reconciliation of the average shares outstanding used to compute basic and diluted income (loss) per common share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding (in shares) | 34,519,889 | 35,595,718 | 34,827,582 | 35,619,145 |
Effect of dilutive securities (in shares) | 0 | 130,190 | 0 | 179,944 |
Diluted weighted average common shares outstanding (in shares) | 34,519,889 | 35,725,908 | 34,827,582 | 35,799,089 |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Number of anti-dilutive shares excluded from the calculation of diluted net income (loss) per common share | 1,515,430 | 1,556,298 | ||
Dividends | $ 0 | $ 0 | $ 0 | $ 0 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Class Of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Par value of common stock (in dollars per share) | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 3,500,000 | 3,500,000 |
Par value of preferred stock per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | |
Stock repurchase program, remaining authorized amount | $ 10,600,000 | |
Common Stock | ||
Class Of Stock [Line Items] | ||
Common stock repurchased, shares | 1,061,711 | |
Common stock repurchased, value | $ 12,000,000 | |
Maximum | Common Stock | ||
Class Of Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 30,000,000 |
Equity - Reconciliation of accu
Equity - Reconciliation of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Increase (Decrease) in Equity [Roll Forward] | ||||
Beginning balance | $ 645.9 | |||
Total other comprehensive income (loss), net of income tax | $ 9.3 | $ 2.3 | (3.1) | $ 0.4 |
Ending balance | 615.7 | 615.7 | ||
Gains and Losses on Cash Flow Hedges | ||||
Increase (Decrease) in Equity [Roll Forward] | ||||
Beginning balance | (0.2) | (0.3) | ||
Other comprehensive income (loss) before reclassifications | (0.1) | (0.3) | (0.2) | (1) |
Amounts reclassified from accumulated other comprehensive loss | 0.2 | 0.9 | 0.3 | 1.7 |
Total other comprehensive income (loss), net of income tax | 0.1 | 0.6 | 0.1 | 0.7 |
Ending balance | 0.1 | 0.4 | 0.1 | 0.4 |
Pension & Postretirement | ||||
Increase (Decrease) in Equity [Roll Forward] | ||||
Beginning balance | (38.7) | (35.7) | (39.9) | (36.2) |
Other comprehensive income (loss) before reclassifications | 0.5 | 0.1 | 1 | 0.2 |
Amounts reclassified from accumulated other comprehensive loss | 0.1 | 0.4 | 0.8 | 0.8 |
Total other comprehensive income (loss), net of income tax | 0.6 | 0.5 | 1.8 | 1 |
Ending balance | (38.1) | (35.2) | (38.1) | (35.2) |
Foreign Currency Translation | ||||
Increase (Decrease) in Equity [Roll Forward] | ||||
Beginning balance | (94.7) | (82.6) | (81.1) | (80.1) |
Other comprehensive income (loss) before reclassifications | 8.6 | 1.2 | (5) | (1.3) |
Total other comprehensive income (loss), net of income tax | 8.6 | 1.2 | (5) | (1.3) |
Ending balance | (86.1) | (81.4) | (86.1) | (81.4) |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Equity [Roll Forward] | ||||
Beginning balance | (133.4) | (118.5) | (121) | (116.6) |
Other comprehensive income (loss) before reclassifications | 9 | 1 | (4.2) | (2.1) |
Amounts reclassified from accumulated other comprehensive loss | 0.3 | 1.3 | 1.1 | 2.5 |
Total other comprehensive income (loss), net of income tax | 9.3 | 2.3 | (3.1) | 0.4 |
Ending balance | $ (124.1) | $ (116.2) | $ (124.1) | $ (116.2) |
Equity - Reconciliation of Recl
Equity - Reconciliation of Reclassifications from Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Reclassifications out of Accumulated Comprehensive Income (Loss) [Line Items] | ||||
Cost of sales | $ 279.9 | $ 409.5 | $ 545.9 | $ 747.3 |
Total before income taxes | (12) | 49.9 | (17.9) | 26.5 |
Income tax benefit (provision) | (0.7) | (3.9) | (2.6) | (7.2) |
Net income (loss) | (12.7) | 46 | (20.5) | 19.3 |
Other income (expense) - net | (2.9) | 15.9 | (6.9) | 12.6 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Schedule of Reclassifications out of Accumulated Comprehensive Income (Loss) [Line Items] | ||||
Net income (loss) | (0.3) | (1.3) | (1.1) | (2.5) |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Schedule of Reclassifications out of Accumulated Comprehensive Income (Loss) [Line Items] | ||||
Total before income taxes | (0.2) | (0.9) | (0.3) | (1.7) |
Net income (loss) | (0.2) | (0.9) | (0.3) | (1.7) |
Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Exchange Contracts | ||||
Schedule of Reclassifications out of Accumulated Comprehensive Income (Loss) [Line Items] | ||||
Cost of sales | (0.2) | (0.9) | (0.3) | (1.7) |
Actuarial Losses | Reclassification out of Accumulated Other Comprehensive Income | ||||
Schedule of Reclassifications out of Accumulated Comprehensive Income (Loss) [Line Items] | ||||
Other income (expense) - net | (1.1) | (1.1) | (2.2) | (2.2) |
Amortization of Prior Service Cost | Reclassification out of Accumulated Other Comprehensive Income | ||||
Schedule of Reclassifications out of Accumulated Comprehensive Income (Loss) [Line Items] | ||||
Other income (expense) - net | 0.7 | 0.7 | 1.4 | 1.4 |
Pension & Postretirement | Reclassification out of Accumulated Other Comprehensive Income | ||||
Schedule of Reclassifications out of Accumulated Comprehensive Income (Loss) [Line Items] | ||||
Total before income taxes | (0.4) | (0.4) | (0.8) | (0.8) |
Income tax benefit (provision) | 0.3 | |||
Net income (loss) | $ (0.1) | $ (0.4) | $ (0.8) | $ (0.8) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock-Based Compensation | ||||
Share-based compensation, remaining shares available for issuance (in shares) | 3,983,976 | 3,983,976 | ||
Stock-based compensation expense (in dollars) | $ 2.5 | $ 3 | $ 5.9 | $ 6.1 |
Director | ||||
Stock-Based Compensation | ||||
Number of share options granted during the period (in shares) | 0 | 0 | 77,608 | 50,673 |
Stock Options | ||||
Stock-Based Compensation | ||||
Number of share options granted during the period (in shares) | 0 | 0 | 250,432 | 210,243 |
Vesting period (in years) | 3 years | |||
Expiration period (in years) | 10 years | |||
Restricted Stock Units | ||||
Stock-Based Compensation | ||||
Vesting period (in years) | 3 years | |||
Number of shares of other than options granted during the period (in shares) | 28,070 | 2,000 | 305,519 | 178,371 |
Performance Shares | ||||
Stock-Based Compensation | ||||
Vesting period (in years) | 3 years | |||
Number of shares of other than options granted during the period (in shares) | 6,711 | 0 | 328,310 | 228,037 |
2013 Omnibus Plan | ||||
Stock-Based Compensation | ||||
Share-based compensation, shares authorized (in shares) | 7,477,395 | 7,477,395 | ||
Performance Shares 2020 | Performance Shares | ||||
Stock-Based Compensation | ||||
Percentage of shares paid based on total shareholder return relative to defined peer group (as a percent) | 100.00% | |||
Percentage of shares paid based on adjusted EBITDA (as a percent) | 100.00% | |||
Performance period (in years) | 3 years | |||
Increase decrease in percentage of shares paid based on total shareholder return relative to defined peer group | 20.00% | |||
Performance Shares 2019 | Performance Shares | ||||
Stock-Based Compensation | ||||
Percentage of shares paid based on total shareholder return relative to defined peer group (as a percent) | 50.00% | |||
Percentage of shares paid based on adjusted EBITDA (as a percent) | 50.00% | |||
Performance period (in years) | 3 years |
Segments - Narrative (Details)
Segments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segments - Schedule of Informat
Segments - Schedule of Information by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 328.3 | $ 504.7 | $ 657.5 | $ 922.7 |
Operating (loss) income | (1.6) | 41.9 | 4.1 | 58.1 |
Depreciation | 9.1 | 8.6 | 18.1 | 17.4 |
Capital Expenditures | 4.4 | 5.3 | 8 | 9.7 |
Segment Operating Income (Loss) | ||||
Segment Reporting Information [Line Items] | ||||
Operating (loss) income | 7 | 42.5 | 22 | 68.4 |
Segment Operating Income (Loss) | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 149.6 | 264.6 | 305.8 | 470.7 |
Operating (loss) income | 4.8 | 35.7 | 13.9 | 50.9 |
Depreciation | 4 | 3.5 | 8 | 7.1 |
Capital Expenditures | 1.2 | 3.2 | 1.5 | 6 |
Segment Operating Income (Loss) | EURAF | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 135.5 | 182.6 | 258.4 | 336.8 |
Operating (loss) income | (4.4) | 1.7 | (4.8) | 5.1 |
Depreciation | 3.9 | 3.7 | 7.7 | 7.4 |
Capital Expenditures | 3.1 | 1.6 | 6.4 | 2.4 |
Segment Operating Income (Loss) | Middle East and Asia Pacific ("MEAP") | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 43.2 | 57.5 | 93.3 | 115.2 |
Operating (loss) income | 6.6 | 5.1 | 12.9 | 12.4 |
Depreciation | 0.5 | 0.7 | 1 | 1.4 |
Capital Expenditures | 0.1 | 0.5 | 0.1 | 1.3 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating (loss) income | (8.6) | (0.6) | (17.9) | (10.2) |
Depreciation | $ 0.7 | $ 0.7 | $ 1.4 | $ 1.5 |
Segments - Schedule of Reconcil
Segments - Schedule of Reconciliation of the Company's Segment Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Total operating income (loss) | $ (1.6) | $ 41.9 | $ 4.1 | $ 58.1 |
Unallocated restructuring expense | 0.2 | 2.7 | 1.7 | 7.2 |
Segment Operating Income | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Total operating income (loss) | 7 | 42.5 | 22 | 68.4 |
Corporate | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Total operating income (loss) | $ (8.6) | $ (0.6) | $ (17.9) | (10.2) |
Reconciliation of Company's Segment Operating Income | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Unallocated restructuring expense | $ (0.1) |
Segments - Schedule of Net Sale
Segments - Schedule of Net Sales by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues from External Customers [Line Items] | ||||
Net sales | $ 328.3 | $ 504.7 | $ 657.5 | $ 922.7 |
United States | ||||
Revenues from External Customers [Line Items] | ||||
Net sales | 133.5 | 233 | 276.2 | 417.7 |
Europe | ||||
Revenues from External Customers [Line Items] | ||||
Net sales | 133.5 | 174.1 | 253 | 323.2 |
Other | ||||
Revenues from External Customers [Line Items] | ||||
Net sales | $ 61.3 | $ 97.6 | $ 128.3 | $ 181.8 |
Segments - Schedule of Net Sa_2
Segments - Schedule of Net Sales By Product (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Product Information [Line Items] | ||||
Total net sales | $ 328.3 | $ 504.7 | $ 657.5 | $ 922.7 |
Cranes | ||||
Product Information [Line Items] | ||||
Total net sales | 259.5 | 418 | 508.1 | 751.5 |
Aftermarket Parts and Other | ||||
Product Information [Line Items] | ||||
Total net sales | $ 68.8 | $ 86.7 | $ 149.4 | $ 171.2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies [Line Items] | ||
Period over which product liability self-insurance retention levels have fluctuated (in years) | 10 years | |
Product liability reserves | $ 11,600,000 | $ 12,800,000 |
Warranty claims reserves | 60,100,000 | $ 60,600,000 |
Gain on settlement | 24,700,000 | |
Other Income (Expense) - Net | ||
Commitments And Contingencies [Line Items] | ||
Gain on settlement | 15,500,000 | |
Engineering, Selling and Administrative Expenses | ||
Commitments And Contingencies [Line Items] | ||
Gain on settlement | 9,200,000 | |
Maximum | ||
Commitments And Contingencies [Line Items] | ||
Product liability self-insurance maximum retention level for new occurrence | $ 2,000,000 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Guarantees [Abstract] | ||
Revenue deferred related to buyback obligations included in other current and non-current liabilities | $ 33.4 | $ 34.1 |
Amount of residual value buyback commitments and given by the company | 18.1 | 17.3 |
Amount of loss guarantees with maximum liabilities | 17.1 | 11.3 |
Revenue deferred related to warranties included in other current and non-current liabilities | $ 5.8 | $ 3.9 |
Standard product warranties, low end of range (in months) | 12 months | |
Standard product warranties, high end of range (in months) | 60 months |
Guarantees - Summary of Warrant
Guarantees - Summary of Warranty Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Warranty activity | |||||
Balance at beginning of period | $ 59.7 | $ 45.7 | $ 60.6 | $ 47.8 | |
Accruals for warranties issued during the period | 7.5 | 13.1 | 16.1 | 20.1 | |
Settlements made (in cash or in kind) during the period | (7.8) | (7.7) | (16.6) | (16.5) | |
Currency translation | 0.7 | 0.2 | (0.1) | ||
Balance at end of period | 60.1 | 51.3 | 60.1 | 51.3 | |
Long-term warranty reserve | (14.3) | (8.9) | (14.3) | (8.9) | |
Product warranties | $ 45.8 | $ 42.4 | $ 45.8 | $ 42.4 | $ 47.2 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring And Related Activities [Abstract] | ||||
Restructuring expense | $ 0.2 | $ 2.7 | $ 1.7 | $ 7.2 |
Restructuring - Rollforward of
Restructuring - Rollforward of all restructuring accrual (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Rollforward of all restructuring accrual | ||||
Balance at beginning of period | $ 2.4 | $ 4.6 | $ 2 | $ 3.1 |
Restructuring expense | 0.2 | 2.7 | 1.7 | 7.2 |
Use of reserve | (0.7) | (4.2) | (1.8) | (7.2) |
Balance at end of period | $ 1.9 | $ 3.1 | $ 1.9 | $ 3.1 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Period Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pension Plans | U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost of projected benefit obligations | 1 | 1.3 | 2 | 2.6 |
Expected return on plan assets | (1.3) | (1.1) | (2.6) | (2.2) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial net loss | 0.7 | 0.8 | 1.4 | 1.6 |
Net periodic benefit cost | 0.4 | 1 | 0.8 | 2 |
Pension Plans | Non-US Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 0.5 | 0.5 | 1 | 1 |
Interest cost of projected benefit obligations | 0.4 | 0.5 | 0.8 | 1 |
Expected return on plan assets | (0.2) | (0.3) | (0.4) | (0.6) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial net loss | 0.4 | 0.3 | 0.8 | 0.6 |
Net periodic benefit cost | 1.1 | 1 | 2.2 | 2 |
Postretirement Health and Other Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 0 | 0.1 | 0.1 | 0.2 |
Interest cost of projected benefit obligations | 0.1 | 0.2 | 0.2 | 0.4 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (0.7) | (0.7) | (1.4) | (1.4) |
Amortization of actuarial net loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ (0.6) | $ (0.4) | $ (1.1) | $ (0.8) |