☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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

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

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

As of June 30, ~~2022,~~2023, the registrant had ~~35,178,217~~35,045,446 shares of common stock, $.01 par value per share, outstanding.


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021			2023			2022			2023			2022
Net sales	$	497.2		$	463.6		$	956.2		$	817.9		$	602.8		$	497.2		$	1,111.1		$	956.2
Cost of sales		408.5			373.2			782.5			659.1			479.8			408.5			881.8			782.5
Gross profit		88.7			90.4			173.7			158.8			123.0			88.7			229.3			173.7
Operating costs and expenses:
Engineering, selling and administrative expenses		69.3			63.6			135.8			121.3			87.6			69.3			162.7			135.8
Amortization of intangible assets		0.8			0.1			1.6			0.2			0.7			0.8			1.7			1.6
Restructuring (income) expense		0.3			0			0.4			(0.1	)
Restructuring expense														0.3			0.3			0.3			0.4
Total operating costs and expenses		70.4			63.7			137.8			121.4			88.6			70.4			164.7			137.8
Operating income		18.3			26.7			35.9			37.4			34.4			18.3			64.6			35.9
Other income (expense):
Other expense:
Interest expense		(7.9	)		(7.3	)		(15.3	)		(14.4	)		(9.0	)		(7.9	)		(17.1	)		(15.3	)
Amortization of deferred financing fees		(0.3	)		(0.3	)		(0.7	)		(0.7	)		(0.4	)		(0.3	)		(0.7	)		(0.7	)
Other income (expense) - net		(2.1	)		2.8			(2.3	)		0.7
Total other expense - net		(10.3	)		(4.8	)		(18.3	)		(14.4	)
Other expense - net														(10.0	)		(2.1	)		(11.1	)		(2.3	)
Total other expense														(19.4	)		(10.3	)		(28.9	)		(18.3	)
Income before income taxes		8.0			21.9			17.6			23.0			15.0			8.0			35.7			17.6
Provision (benefit) for income taxes		(7.1	)		4.0			(0.6	)		8.2
Benefit for income taxes														(5.2	)		(7.1	)		(1.0	)		(0.6	)
Net income	$	15.1		$	17.9		$	18.2		$	14.8		$	20.2		$	15.1		$	36.7		$	18.2

Per Share Data
Per Share Data and Share Amounts:
Basic net income per common share	$	0.43		$	0.51		$	0.52		$	0.42		$	0.58		$	0.43		$	1.05		$	0.52

Diluted net income per common share	$	0.42		$	0.50		$	0.51		$	0.42		$	0.57		$	0.42		$	1.03		$	0.51

Weighted average shares outstanding - basic		35,283,969			34,903,657			35,208,349			34,856,950			35,084,580			35,283,969			35,102,924			35,208,349
Weighted average shares outstanding - diluted		35,550,942			35,602,042			35,564,882			35,460,779			35,650,143			35,550,942			35,766,952			35,564,882

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.


	June 30, 2022			December 31, 2021			June 30, 2023			December 31, 2022
Assets
Current Assets:
Cash and cash equivalents	$	42.5		$	75.4		$	25.9		$	64.4
Accounts receivable, less allowances of $5.6 and $7.3, respectively		227.2			236.1
Accounts receivable, less allowances of $5.4 and $5.3, respectively								274.8			266.3
Inventories — net		668.9			576.8			727.4			611.9
Notes receivable — net		14.3			16.7			8.7			10.6
Other current assets		33.6			36.8			32.2			45.3
Total current assets		986.5			941.8			1,069.0			998.5
Property, plant and equipment — net		322.2			358.8			341.9			335.3
Operating lease right-of-use assets		35.8			40.6			41.5			45.2
Goodwill		247.3			249.7			79.0			80.1
Other intangible assets — net		132.5			139.6			126.2			126.7
Other non-current assets		33.5			44.7			43.5			29.7
Total assets	$	1,757.8		$	1,775.2		$	1,701.1		$	1,615.5
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued expenses	$	455.5		$	413.4		$	492.4		$	446.4
Customer advances								20.2			21.9
Short-term borrowings and current portion of long-term debt		13.5			7.3			6.7			6.1
Product warranties		48.1			49.0			45.4			48.8
Customer advances		28.0			28.7
Other liabilities		21.4			22.6			19.8			24.6
Total current liabilities		566.5			521.0			584.5			547.8
Non-Current Liabilities:
Long-term debt		379.7			399.9			380.7			379.5
Operating lease liabilities		25.5			29.2			31.8			34.3
Deferred income taxes		1.0			6.5			5.0			4.9
Pension obligations		67.3			69.4			55.1			51.7
Postretirement health and other benefit obligations		11.6			12.1			7.8			8.2
Long-term deferred revenue		16.8			22.9			13.8			15.6
Other non-current liabilities		36.2			51.8			43.0			35.7
Total non-current liabilities		538.1			591.8			537.2			529.9
Commitments and contingencies (Note 18)
Stockholders' Equity:
Preferred stock (3,500,000 shares authorized of $.01 par value; NaN outstanding)		0			0
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 35,178,217 and 35,056,252 shares outstanding, respectively)		0.4			0.4
Preferred stock (3,500,000 shares authorized of $.01 par value; none outstanding)								—			—
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 35,045,446 and 35,085,008 shares outstanding, respectively)								0.4			0.4
Additional paid-in capital		602.5			602.4			607.8			606.7
Accumulated other comprehensive loss		(131.1	)		(102.4	)		(101.9	)		(107.9	)
Retained earnings		246.1			227.9			141.0			104.3
Treasury stock, at cost (5,615,766 and 5,737,731 shares, respectively)		(64.7	)		(65.9	)
Treasury stock, at cost (5,748,537 and 5,708,975 shares, respectively)								(67.9	)		(65.7	)
Total stockholders' equity		653.2			662.4			579.4			537.8
Total liabilities and stockholders' equity	$	1,757.8		$	1,775.2		$	1,701.1		$	1,615.5

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.


	Six Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2023			2022
Cash Flows from Operating Activities:
Net income	$	18.2		$	14.8		$	36.7		$	18.2
Adjustments to reconcile net income to cash provided by operating activities:
Adjustments to reconcile net income to cash provided by (used for) operating activities:
Depreciation		31.7			19.7			28.1			31.7
Amortization of intangible assets		1.6			0.2			1.7			1.6
Stock-based compensation expense		4.0			4.8			5.4			4.0
Amortization of deferred financing fees		0.7			0.7			0.7			0.7
Gain on sale of property, plant and equipment		(1.1	)		(0.1	)		(0.2	)		(1.1	)
Net unrealized foreign currency transaction (gains) losses		5.8			(0.8	)		(3.7	)		5.8
Income tax benefit from change in reserve of uncertain tax positions		(11.7	)		0			—			(11.7	)
Deferred income taxes		0.9			1.0			(14.0	)		0.9
Loss on foreign currency translation adjustments								9.3			—
Other		0.9			3.6			—		0.9
Changes in operating assets and liabilities
Accounts receivable		0.8			(15.5	)		(7.1	)		0.8
Inventories		(109.2	)		(62.2	)		(107.4	)		(109.2	)
Notes receivable		3.4			3.9			3.9			3.4
Other assets		(1.1	)		(11.4	)		11.6			(1.1	)
Accounts payable		61.1			85.4			19.5			61.1
Accrued expenses and other liabilities		(0.3	)		5.6			12.4			(0.3	)
Net cash provided by operating activities		5.7			49.7
Net cash provided by (used for) operating activities								(3.1	)		5.7
Cash Flows from Investing Activities:
Capital expenditures		(16.8	)		(15.4	)		(36.3	)		(16.8	)
Proceeds from sale of property, plant and equipment		1.4			0.1			5.1			1.4
Acquisition of businesses (Note 2)		2.3			0
Acquisition of businesses								—			2.3
Net cash used for investing activities		(13.1	)		(15.3	)		(31.2	)		(13.1	)
Cash Flows from Financing Activities:
Proceeds from (payments on) revolving credit facility - net								12.0			(20.0	)
Payments on revolving credit facility		(20.0	)		0			(10.0	)		—
Other debt - net		(2.3	)		(7.8	)		(1.2	)		(2.3	)
Debt issuance and other debt related costs		(1.8	)		0			—			(1.8	)
Exercises of stock options		0.1			5.2			0.3			0.1
Common stock repurchases		(1.9	)		0			(5.5	)		(1.9	)
Net cash used for financing activities		(25.9	)		(2.6	)		(4.4	)		(25.9	)
Effect of exchange rate changes on cash and cash equivalents		0.4			(2.0	)		0.2			0.4
Net increase (decrease) in cash and cash equivalents		(32.9	)		29.8
Net decrease in cash and cash equivalents								(38.5	)		(32.9	)
Cash and cash equivalents at beginning of period		75.4			128.7			64.4			75.4
Cash and cash equivalents at end of period	$	42.5		$	158.5		$	25.9		$	42.5
Supplemental Cash Flow Information
Interest paid							$	17.0		$	14.7
Income taxes paid								3.6			2.7

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021			2023			2022			2023			2022
Common Stock - Par Value
Balance at beginning of period	$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4
Balance at end of period	$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4		$	0.4
Additional Paid-in Capital
Balance at beginning of period	$	601.7		$	596.4		$	602.4		$	595.1		$	605.8		$	601.7		$	606.7		$	602.4
Stock options exercised and issuance of other stock awards		(0.1	)		1.4			(3.9	)		0.2			(0.3	)		(0.1	)		(4.3	)		(3.9	)
Stock-based compensation expense		0.9			2.3			4.0			4.8			2.3			0.9			5.4			4.0
Balance at end of period	$	602.5		$	600.1		$	602.5		$	600.1		$	607.8		$	602.5		$	607.8		$	602.5
Accumulated Other Comprehensive Loss
Balance at beginning of period	$	(108.7	)	$	(108.1	)	$	(102.4	)	$	(97.5	)	$	(108.0	)	$	(108.7	)	$	(107.9	)	$	(102.4	)
Other comprehensive loss		(22.4	)		(1.4	)		(28.7	)		(12.0	)
Other comprehensive income (loss)														6.1			(22.4	)		6.0			(28.7	)
Balance at end of period	$	(131.1	)	$	(109.5	)	$	(131.1	)	$	(109.5	)	$	(101.9	)	$	(131.1	)	$	(101.9	)	$	(131.1	)
Retained Earnings
Balance at beginning of period	$	231.0		$	213.8		$	227.9		$	216.9		$	120.8		$	231.0		$	104.3		$	227.9
Net income		15.1			17.9			18.2			14.8			20.2			15.1			36.7			18.2
Balance at end of period	$	246.1		$	231.7		$	246.1		$	231.7		$	141.0		$	246.1		$	141.0		$	246.1
Treasury Stock
Balance at beginning of period	$	(62.9	)	$	(69.5	)	$	(65.9	)	$	(71.4	)	$	(66.2	)	$	(62.9	)	$	(65.7	)	$	(65.9	)
Stock options exercised and issuance of other stock awards		0.1			3.0			3.1			4.9			0.3			0.1			3.3			3.1
Common stock repurchases		(1.9	)		—			(1.9	)		—			(2.0	)		(1.9	)		(5.5	)		(1.9	)
Balance at end of period	$	(64.7	)	$	(66.5	)	$	(64.7	)	$	(66.5	)	$	(67.9	)	$	(64.7	)	$	(67.9	)	$	(64.7	)
Total equity	$	653.2		$	656.2		$	653.2		$	656.2		$	579.4		$	653.2		$	579.4		$	653.2

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

1. Accounting Policies and Basis of Presentation

The Manitowoc Company, Inc. (the “Company” or “Manitowoc”) was founded in 1902 and has over a 120-year tradition of providing high-quality, customer-focused products and support services to its markets. Headquartered in Milwaukee, Wisconsin, United States, Manitowoc is one of the world's leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, distributes, and supports comprehensive product lines of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under the Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain, and Shuttlelift 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 leverages its installed base of 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’s aftermarket support operations ~~provides~~provide the Company with a consistent stream of recurring revenue. ~~The Company continues to expand its tower crane rental fleet in Europe and Africa (“EURAF”) to directly service its customers in the region.~~

The Company has 3three reportable segments, the Americas segment, the ~~EURAF~~Europe and Africa ("EURAF") segment and ~~the~~ Middle East and Asia Pacific (“MEAP”) segment. The Americas segment includes the North America and South America continents. The EURAF reporting segment includes the Europe and Africa continents, excluding the Middle East region. The MEAP reporting segment includes the Asia and Australia continents and the Middle East region. 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 (loss) and equity~~ for the three and six months ended June 30, ~~2022~~2023 and ~~2021,~~2022, the cash flows for the same six month periods and the ~~balance sheet~~financial position as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, and except as otherwise discussed, such adjustments consist of only those of a normal recurring nature. The audited balance sheet as of December 31, 2022 was derived from the audited annual financial statements. 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, ~~2021.~~2022. 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.

2. ~~Business Combinations~~Recent Accounting Changes and Pronouncements

~~Acquisition~~In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-04, "Disclosure of Supplier Financing Program Obligations.” The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient information about the ~~H&E Crane Business~~

~~On October~~program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The Company adopted this ASU as of January 1, ~~2021, the Company completed the acquisition~~2023. The adoption of ~~substantially all of the assets and certain liabilities of the crane business of H&E Equipment Services, Inc. (“H&E”) for~~this ASU did not have a ~~transaction price of approximately $136.8~~ ~~million which is inclusive of the purchase price of $130.0~~ ~~million, working capital and other adjustments of $3.7~~ ~~million and settlement of outstanding balances between the Company and the acquired company of $3.1~~ ~~million. The acquisition was funded from existing cash resources, including the use of~~material impact on the Company's ~~asset-based revolving credit facility of which $80.0~~ ~~million was outstanding as of June 30, 2022.~~ The acquired crane business of H&E operates with ten full-service branch locations under the Company's wholly owned subsidiary, MGX Equipment Services, LLC ("MGX"), and expands Manitowoc’s ability to provide new sales, used sales, aftermarket parts, service and crane financing options to a variety of end market customers.

~~The transaction price was allocated to underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of the combination as follows:~~

Net working capital

$
48.8

Property, plant and equipment

13.1

Rental fleet

48.2

Goodwill

7.8

Noncompetition agreement intangible

3.8

Customer relationships intangible

15.1

Total fair value consideration

$
136.8

~~The amount of net sales generated by the acquisition for the three and six months ended June 30, 2022 was $53.4~~ ~~million and $96.4~~ ~~million, respectively.~~

~~Acquisition of Aspen Equipment Company~~

On September 1, 2021, the Company completed the acquisition of substantially all of the assets of Aspen Equipment Company ("Aspen"), a diversified crane dealer and a leading final stage purpose built work truck upfitter, for a purchase price of approximately $~~50.2~~ ~~million.~~ The acquisition of Aspen was funded from existing cash resources and expands Manitowoc's direct-to-customer footprint in Iowa, Nebraska and Minnesota with new sales, used sales, parts, service and rentals to a variety of end markets.

~~Included in the purchase price was $12.9~~ ~~million of net working capital, $5.6~~ ~~million of property, plant and equipment, $19.3~~ ~~million of rental fleet, $0.4~~ ~~million of other assets, $6.6~~ ~~million of goodwill and $5.4~~ ~~million of intangible assets. Refer to Note 9, "Goodwill and Other Intangible Assets," for additional information on the class of intangibles acquired and goodwill recorded.~~

~~The amount of net sales generated by the acquisition for the three and six months ended June 30, 2022 was $16.5~~ ~~million and $29.0~~ ~~million, respectively.~~consolidated financial statements.

4. Fair Value of Financial Instruments

The following table sets forth the Company’s financial assets and liabilities related to foreign currency exchange contracts (“FX Forward Contracts”) that were accounted for at fair value as of June 30, ~~2022~~2023 and December 31, ~~2021.~~2022.


	Fair Value as of June 30, 2022									Fair Value as of June 30, 2023
	Level 1		Level 2		Level 3		Total		Recognized Location	Level 1		Level 2		Level 3		Total		Recognized Location
Current Assets:
FX Forward Contracts	$	—	$	0.1	$	—	$	0.1	Other current assets	$	—	$	0.7	$	—	$	0.7	Other current assets
Current Liabilities:
FX Forward Contracts		—		3.2		—		3.2	Accounts payable and accrued expenses	$	—	$	0.6	$	—	$	0.6	Accounts payable and accrued expenses

Fair Value as of December 31, 2021

Level 1

Level 2

Level 3

Total

Recognized Location
FX Forward Contracts

$
—

$
0.3

$
—

$
0.3

Accounts payable and
accrued expenses


	Fair Value as of December 31, 2022
	Level 1		Level 2		Level 3		Total		Recognized Location
Current Assets:
FX Forward Contracts	$	—	$	5.7	$	—	$	5.7	Other current assets

Current Liabilities:
FX Forward Contracts	$	—	$	0.3	$	—	$	0.3	Accounts payable and accrued expenses

The fair value of the $300.0 million senior secured second lien notes due on April 1, 2026, with an annual coupon rate of 9.000% (the “2026 Notes”), was $~~279.3~~299.3 million as of June 30, ~~2022.~~2023. 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 of the instruments; 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 Company's revolving credit facility, approximate fair value, without being discounted as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, due to the short-term nature of these instruments.

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.

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) ("AOCI"). 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 forecasted transactions no longer being probable during the three and six months ended June 30, ~~2022~~2023 and ~~2021, respectively.~~2022.

The Company had FX Forward Contracts with aggregate notional amounts of $~~88.8~~109.1 million and $~~11.3~~87.7 million in U.S. dollar equivalent as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. The aggregate notional amount outstanding as of June 30, ~~2022~~2023 is scheduled to mature within one year. The FX Forward Contracts purchased are denominated in various foreign currencies. ~~As of June 30, 2022 and December 31, 2021, the net fair value of these contracts was a net short-term liability of $3.1~~ ~~million and a $0.3~~ ~~million, respectively. There was $2.3~~ ~~million and zero~~Net unrealized gains (losses), net of income tax, recorded in AOCI were $0.4 million of losses and $5.4 million of gains as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

The net gains (losses) recorded in the Condensed Consolidated Statements of Operations for FX Forward Contracts for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 are summarized as follows:


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended June 30,						Six Months Ended June 30,
	Recognized Location	2022			2021			2022			2021			Recognized Location	2023			2022			2023			2022
Designated	Cost of sales	$	(1.5	)	$	0.1		$	(1.6	)	$	0.1		Cost of sales	$	1.8		$	(1.5	)	$	5.2		$	(1.6	)
Non-designated	Other income (expense) - net	$	1.3		$	(0.2	)	$	2.0		$	(0.4	)	Other expense - net	$	(2.9	)	$	1.3		$	(5.2	)	$	2.0

6. Inventories

The components of inventories as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022 are summarized as follows:


	June 30, 2022		December 31, 2021		June 30, 2023		December 31, 2022
Raw materials	$	156.3	$	157.4	$	173.6	$	161.2
Work-in-process		177.6		140.4		160.6		141.3
Finished goods		335.0		279.0		393.2		309.4
Total inventories - net	$	668.9	$	576.8	$	727.4	$	611.9

7. Notes Receivable

The ~~Company's~~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 in the Condensed Consolidated Balance Sheets. As of June 30, 2023, the Company had current and long-term notes receivable in the amount of $8.7 million and $1.0 million, respectively. As of December 31, 2022, the Company had current and long-term notes receivable in the amount of $10.6 million and $2.0 million, respectively. During the ~~first quarter of~~six months ended June 30, 2022, the Company recorded income of $4.8 million in engineering, selling, and administrative expenses in the Condensed Consolidated Statements of Operations to recognize the partial recovery of the previously ~~written off~~written-off long-term note receivable balance from the 2014 divestiture of the Company's Chinese joint venture. ~~As of June 30, 2022, the Company had current and long-term notes receivable in the amount of $14.3~~ ~~million and $3.2~~ ~~million, respectively. As of December 31, 2021, the Company had current and long-term notes receivable in the amount of $16.7~~ ~~million and $5.2~~ ~~million, respectively.~~

8. Property, Plant, and Equipment

The components of property, plant, and equipment as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022 are summarized as follows:


	June 30, 2022			December 31, 2021			June 30, 2023			December 31, 2022
Land	$	18.3		$	19.4		$	14.8		$	17.9
Building and improvements		195.5			203.4			197.7			194.7
Machinery, equipment and tooling		291.3			298.9
Machinery, equipment, and tooling								308.1			300.6
Furniture and fixtures		13.9			14.5			13.9			13.8
Computer hardware and software		128.1			125.6			133.2			129.4
Rental cranes		137.2			144.2			176.2			157.8
Construction in progress		10.2			15.1			8.3			8.4
Total cost		794.5			821.1			852.2			822.6
Less accumulated depreciation		(472.3	)		(462.3	)		(510.3	)		(487.3	)
Property, plant and equipment — net	$	322.2		$	358.8
Property, plant, and equipment — net							$	341.9		$	335.3

Property, plant, and equipment ~~are~~is depreciated over the ~~asset’s~~ estimated useful life using the straight-line depreciation method for financial reporting and accelerated methods for income tax purposes.

Assets Held for Sale

As of June 30, ~~2022 and December 31, 2021,~~2023, the Company had $~~2.8~~2.9 million of property, plant, and $~~3.1~~ ~~million, respectively,~~equipment classified as assets held for sale in other current assets in the Condensed Consolidated Balance Sheets. ~~As of June 30, 2022 and December 31, 2021, assets held for sale primarily related~~This amount relates to a manufacturing building and land in Fanzeres, Portugal.

9. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill as of June 30, 2023 and December 31, 2022 are summarized as follows:


	Americas - Distribution		MEAP			Consolidated
Balance as of December 31, 2022	$	14.4	$	65.7		$	80.1
Foreign currency impact		—		(1.1	)		(1.1	)
Balance as of June 30, 2023	$	14.4	$	64.6		$	79.0

The gross carrying amount, accumulated impairment, and net book value of the Company's goodwill balances by reporting unit are summarized as follows:


	June 30, 2023							December 31, 2022

	Gross Carrying Amount		Accumulated Impairment Amount			Net Book Value		Gross Carrying Amount		Accumulated Impairment Amount			Net Book Value
Americas - Manufacturing	$	166.5	$	(166.5	)	$	—	$	166.5	$	(166.5	)	$	—
Americas - Distribution		14.4		—			14.4		14.4		—			14.4
EURAF		82.2		(82.2	)		—		82.2		(82.2	)		—
MEAP		64.6		—			64.6		65.7		—			65.7
Total	$	327.7	$	(248.7	)	$	79.0	$	328.8	$	(248.7	)	$	80.1

The Company performs its annual goodwill ~~and indefinite lived assets~~ impairment ~~testing~~test during the fourth quarter, or more frequently if events or changes in circumstances indicate that ~~the asset~~there might be ~~impaired.~~an impairment of the asset. The Company will continue to monitor changes in circumstances and test more frequently if those changes indicate that assets might be impaired.

The ~~changes in~~Company determined there was no triggering event for the ~~carrying amount of goodwill as of~~three and six months ended June 30, ~~2022 and December 31, 2021 are summarized as follows:~~

Americas -
Manufacturing

Americas -
Distribution

MEAP

Consolidated

Balance as of January 1, 2021

$
166.5

$
0

$
68.6

$
235.1

Foreign currency impact

0

0

(0.5
)

(0.5
)
Acquisitions

0

15.1

0

15.1

Balance as of December 31, 2021

166.5

15.1

68.1

249.7

Foreign currency impact

0

0

(1.7
)

(1.7
)
Purchase accounting adjustments

0

(0.7
)

0

(0.7
)
Balance as of June 30, 2022

$
166.5

$
14.4

$
66.4

$
247.3

~~As of June 30, 2022, the Company recorded goodwill of $~~2023.~~6.6~~ ~~million and $7.8~~ million from the acquisitions of Aspen and the crane business of H&E, respectively. Management determined the goodwill represents the assembled workforce and synergies between the acquired companies and Manitowoc that are not individually identified and separately recognized. The total

~~goodwill related to the acquisitions is deductible for tax purposes over 15 years. Refer to Note 2, "Business Combinations," for additional information.~~

The gross carrying amount, accumulated amortization, and net book value of the Company’s other intangible assets other than goodwill as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022 are summarized as follows:


	June 30, 2022							December 31, 2021							June 30, 2023							December 31, 2022
	Gross Carrying Amount		Accumulated Amortization Amount			Net Book Value		Gross Carrying Amount		Accumulated Amortization Amount			Net Book Value		Gross Carrying Amount		Accumulated Amortization Amount			Net Book Value		Gross Carrying Amount		Accumulated Amortization Amount			Net Book Value
Definite lived intangible assets:
Customer relationships	$	26.7	$	(9.5	)	$	17.2	$	27.0	$	(9.0	)	$	18.0	$	26.5	$	(10.9	)	$	15.6	$	26.5	$	(10.0	)	$	16.5
Patents		28.3		(27.8	)		0.5		29.7		(29.1	)		0.6		29.0		(28.5	)		0.5		28.7		(28.2	)		0.5
Noncompetition agreements		4.2		(0.8	)		3.4		4.2		(0.4	)		3.8		4.2		(1.6	)		2.6		4.2		(1.2	)		3.0
Trademarks and tradenames		2.2		(0.4	)		1.8		2.2		(0.1	)		2.1		2.2		(0.8	)		1.4		2.2		(0.6	)		1.6
Other intangibles		0.6		(0.2	)		0.4		0.6		(0.2	)		0.4		0.6		(0.6	)		—		0.6		(0.5	)		0.1
Total		62.0		(38.7	)		23.3		63.7		(38.8	)		24.9		62.5		(42.4	)		20.1		62.2		(40.5	)		21.7
Indefinite lived intangible assets:
Trademarks and tradenames		91.3		—			91.3		95.9		—			95.9		92.0		—			92.0		91.0		—			91.0
Distribution network		17.9		—			17.9		18.8		—			18.8		14.1		—			14.1		14.0		—			14.0
Total		109.2		—			109.2		114.7		—			114.7		106.1		—			106.1		105.0		—			105.0
Total other intangible assets	$	171.2	$	(38.7	)	$	132.5	$	178.4	$	(38.8	)	$	139.6	$	168.6	$	(42.4	)	$	126.2	$	167.2	$	(40.5	)	$	126.7

~~Other~~The Company performs its annual indefinite-lived intangible assets ~~with definite lives are amortized over their estimated useful lives. Amortization expense~~impairment testing during the fourth quarter, or more frequently if events or changes in circumstances indicate that there might be an impairment of the asset. The Company will continue to monitor changes in circumstances and test more frequently if those changes indicate that assets might be impaired. The Company determined there was no triggering event for the three ~~months ended June 30, 2022~~ and ~~2021 was $0.8~~ ~~million and $0.1~~ ~~million, respectively. Amortization expense for the~~ six months ended June 30, ~~2022 and 2021 was $1.6~~ ~~million and $0.2~~ ~~million, respectively.~~2023.

~~As a result of the acquisition of Aspen during the year ended December 31, 2021, intangible assets of $~~10~~2.2~~

~~million for customer relationships, $2.2~~ ~~million for tradenames, $0.8~~ ~~million for other intangibles and $0.2~~ ~~million for a noncompetition agreement were acquired. The useful life for each intangible asset class is~~ 18 ~~years,~~ 5 ~~years,~~ 9 ~~months and~~ 5 ~~years, respectively. The weighted average useful life for acquired intangibles is~~ ~~3.2~~ ~~years. The fair value of identifiable intangible assets has been determined using the income approach which involves significant unobservable inputs.~~

~~As a result of the acquisition of the crane business of H&E during the year ending December 31, 2021, intangible assets of $15.1~~ ~~million for customer relationships and $3.8~~ ~~million for a noncompetition agreement were acquired. The useful life for each intangible asset class is~~ 12 ~~years and~~ 5 ~~years, respectively. The weighted average useful life for the acquired intangibles is~~ ~~9.4~~ ~~years. The fair value of identifiable intangible assets has been determined using the income approach which involves significant unobservable inputs.~~

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 determined there was no triggering event ~~as of~~for the three and six months ended June 30, ~~2022.~~2023.

Other intangible assets with definite lives are amortized over their estimated useful lives. Amortization expense for the three months ended June 30, 2023 and 2022 was $0.7 million and $0.8 million, respectively. Amortization expense for the six months ended June 30, 2023 and 2022 was $1.7 million and $1.6 million, respectively.

10. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022 are summarized as follows:


	June 30, 2022		December 31, 2021		June 30, 2023		December 31, 2022
Trade accounts payable	$	282.6	$	238.8	$	297.8	$	274.6
Employee-related expenses		41.3		51.9		48.4		51.0
Accrued vacation		24.0		22.2		26.3		22.4
Miscellaneous accrued expenses		107.6		100.5		119.9		98.4
Total accounts payable and accrued expenses	$	455.5	$	413.4	$	492.4	$	446.4

12. Accounts Receivable Factoring

The Company has two non-U.S. accounts receivable financing programs with nomaximum availability ~~of €55.0~~ ~~million~~ and one U.S. accounts receivable financing program with maximum availability of $27.0 million. Transactions under the U.S. and non-U.S. programs were accounted for as sales in accordance with Accounting Standards Codification ("ASC") Topic 860, “Transfers and Servicing.” Under these financing programs, the Company has the ability to sell eligible receivables up to the maximum ~~limit~~limit.

For the three and can sell additional receivables as previously sold receivables are collected. Transactions under the U.S. and non-U.S. programs were accounted for as sales in accordance with ASC 860, “Transfers and Servicing.” As ofsix months ended June 30, ~~2022 and December 31, 2021,~~2023, cash proceeds from the ~~amount~~factoring of accounts receivable ~~derecognized for these factoring arrangements was~~qualifying as sales were $~~34.5~~41.3 million and $~~228.6~~82.7 million, respectively. For the three and six months ended June 30, 2022, cash proceeds from the factoring of accounts receivable qualifying as sales were $58.4 million and $104.0 million, respectively.

Financing charges associated with the factoring of receivables qualifying as sales are included in interest expense in the Condensed Consolidated Statements of Operations. Financing charges incurred from the factoring of accounts receivable qualifying as sales for the three and six months ended June 30, 2023 and 2022 were immaterial.

13. Income Taxes

The ~~Company generates~~Company’s income inbefore income taxes include income from both U.S. and foreign ~~jurisdictions which is included in income before income taxes in the Condensed Consolidated Statements of Operations.~~jurisdictions. The annual effective tax rate varies from the U.S. federal statutory rate of 21% due to results of foreign operations that are subject to income taxes at

different statutory rates. In addition, tax expense is impacted by losses in both the U.S. and ~~certain~~ foreign jurisdictions where no tax benefit can be realized.

For the three months ended June 30, ~~2022,~~2023, and ~~2021,~~2022, the Company recorded a benefit for income taxes of $~~7.1~~5.2 million and ~~a provision for income taxes of~~ $~~4.0~~7.1 million, respectively. For the six months ended June 30, ~~2022,~~2023, and ~~2021,~~2022, the Company recorded a benefit for income taxes of $~~0.6~~1.0 million and ~~a provision for income taxes of~~ $~~8.2~~0.6 million, respectively. ~~For~~During the three ~~and six~~months ended June 30, 2023, a discrete net tax benefit of $13.5 million was recorded, of which $13.9 million is related to the release of a remaining valuation allowance against tax assets after estimated current year utilization. During the three months ended June 30, 2022, ~~and 2021, income taxes were impacted by losses in jurisdictions where~~ 0a discrete tax benefit ~~can be realized. The benefit for income taxes for~~of $11.0 million was recorded, primarily related to the ~~three and six months ended June 30, 2022, was primarily driven by a~~ release of a $12.1 million uncertain tax position, inclusive of $1.2 million of interest, related to U.S. Federal tax planning strategies implemented as a result of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The increase in the Company’s tax benefit for the three and six months ended June 30, 2023, relative to the prior year primarily relates to an increase in the discrete tax benefit recorded year over year.

The Company’s unrecognized tax benefits, excluding interest and penalties, ~~was~~were $~~7.5~~9.2 million and $~~18.4~~9.1 million as of June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively. ~~The decrease is primarily attributable to the release of a $10.9~~ ~~million uncertain tax~~

~~position related to U.S. Federal tax planning strategies as a result of the CARES Act recorded in the three months ended June 30, 2022.~~

14. Net Income Per Common Share

The following is a reconciliation of the weighted average shares outstanding used to compute basic and diluted net income per common share:


	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021		2023		2022		2023		2022
Basic weighted average common shares outstanding		35,283,969		34,903,657		35,208,349		34,856,950		35,084,580		35,283,969		35,102,924		35,208,349
Effect of dilutive securities - equity compensation awards		266,973		698,385		356,533		603,829		565,563		266,973		664,028		356,533
Diluted weighted average common shares outstanding		35,550,942		35,602,042		35,564,882		35,460,779		35,650,143		35,550,942		35,766,952		35,564,882

Equity compensation awards 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 income, and accordingly, are excluded from diluted weighted average common shares outstanding. Anti-dilutive equity instruments of 440,355 and 479,723 common shares were excluded from the diluted weighted average common shares outstanding for the three and six months ended June 30, 2023, respectively. Anti-dilutive equity instruments of 1,087,078 and 950,392 common shares were excluded from the diluted weighted average common shares outstanding for the three and six months ended June 30, 2022, respectively. ~~Anti-dilutive equity instruments of~~ ~~337,541~~ ~~and~~ ~~444,998~~ ~~common shares were excluded from the diluted weighted average common shares outstanding for the three and six months ended June 30, 2021, respectively.~~

~~NaN~~No cash dividends were declared or paid during the three and six months ended June 30, ~~2022~~2023 and ~~2021.~~2022.

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. ~~NaN~~None of the preferred shares have been issued.

As of June 30, ~~2022,~~2023, the Company has $2.1 million remaining under an authorization from the Board of Directors to purchase up to $30.0 million of the ~~Company’s~~Company's common stock at ~~management’s~~management's discretion. During the three ~~and six~~ months ended June 30, ~~2022,~~2023, the Company repurchased ~~150,000~~129,138 shares of the Company's common stock for $~~1.9~~2.0 million under this authorization. During the six months ended June 30, 2023, the Company repurchased 320,984 shares of the Company's common stock for $5.5 million under this authorization.

As of June 30, ~~2022,~~2023, the Company’s operations in Russia have been substantially curtailed. As a result, for the three and six months ended June 30, 2023, the Company ~~had~~released $~~8.7~~9.3 million ~~remaining under this authorization.~~of non-cash foreign currency translation adjustments recorded in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to other expense – net in the

Condensed Consolidated Statement of Operations. The results of the Company’s Russian operations continue to be included in its consolidated results in accordance with ASC 810, “Consolidation.”

A reconciliation of the changes in accumulated other comprehensive ~~loss,~~income (loss), net of income tax, by component for the three months ended June 30, ~~2022~~2023 and ~~2021~~2022 are summarized as follows:

Gains and Losses on
Cash Flow Hedges

Pension &
Postretirement

Foreign Currency
Translation

Total

Balance as of March 31, 2021

$
0

$
(48.5
)

$
(59.6
)

$
(108.1
)
Other comprehensive loss before
   reclassifications

(0.1
)

(1.6
)

0

(1.7
)
Amounts reclassified from accumulated other
   comprehensive loss

(0.1
)

0.4

—

0.3

Net other comprehensive loss

(0.2
)

(1.2
)

0

(1.4
)
Balance as of June 30, 2021

$
(0.2
)

$
(49.7
)

$
(59.6
)

$
(109.5
)

Balance as of March 31, 2022

$
(0.2
)

$
(32.9
)

$
(75.6
)

$
(108.7
)
Other comprehensive loss before
   reclassifications

(3.6
)

(0.1
)

(20.5
)

(24.2
)
Amounts reclassified from accumulated other
   comprehensive loss

1.5

0.3

—

1.8

Net other comprehensive income (loss)

(2.1
)

0.2

(20.5
)

(22.4
)
Balance as of June 30, 2022

$
(2.3
)

$
(32.7
)

$
(96.1
)

$
(131.1
)


	Cash Flow Hedges			Pension & Postretirement			Foreign Currency Translation			Total
Balance as of March 31, 2022	$	(0.2	)	$	(32.9	)	$	(75.6	)	$	(108.7	)
Other comprehensive loss before reclassifications		(3.6	)		(0.1	)		(20.5	)		(24.2	)
Amounts reclassified from accumulated other comprehensive loss		1.5			0.3			—			1.8
Net other comprehensive income (loss)		(2.1	)		0.2			(20.5	)		(22.4	)
Balance as of June 30, 2022	$	(2.3	)	$	(32.7	)	$	(96.1	)	$	(131.1	)

Balance as of March 31, 2023	$	2.1		$	(16.3	)	$	(93.8	)	$	(108.0	)
Other comprehensive income (loss) before reclassifications		(0.7	)		(1.6	)		0.2			(2.1	)
Amounts reclassified from accumulated other comprehensive loss		(1.8	)		0.7			9.3			8.2
Net other comprehensive income (loss)		(2.5	)		(0.9	)		9.5			6.1
Balance as of June 30, 2023	$	(0.4	)	$	(17.2	)	$	(84.3	)	$	(101.9	)

A reconciliation of the changes in accumulated other comprehensive ~~loss,~~income (loss), net of income tax, by component for the six months ended June 30, ~~2022~~2023 and ~~2021~~2022 are summarized as follows:


	Gains and Losses on Cash Flow Hedges			Pension & Postretirement			Foreign Currency Translation			Total
Balance as of December 31, 2020	$	—		$	(47.9	)	$	(49.6	)	$	(97.5	)
Other comprehensive loss before reclassifications		(0.1	)		(2.8	)		(10.0	)		(12.9	)
Amounts reclassified from accumulated other comprehensive loss		(0.1	)		1.0			—			0.9
Net other comprehensive loss		(0.2	)		(1.8	)		(10.0	)		(12.0	)
Balance as of June 30, 2021	$	(0.2	)	$	(49.7	)	$	(59.6	)	$	(109.5	)
													Cash Flow Hedges			Pension & Postretirement			Foreign Currency Translation			Total
Balance as of December 31, 2021	$	0		$	(32.3	)	$	(70.1	)	$	(102.4	)	$	—		$	(32.3	)	$	(70.1	)	$	(102.4	)
Other comprehensive loss before reclassifications		(3.9	)		(1.2	)		(26.0	)		(31.1	)		(3.9	)		(1.2	)		(26.0	)		(31.1	)
Amounts reclassified from accumulated other comprehensive loss		1.6			0.8			—			2.4			1.6			0.8			—			2.4
Net other comprehensive loss		(2.3	)		(0.4	)		(26.0	)		(28.7	)		(2.3	)		(0.4	)		(26.0	)		(28.7	)
Balance as of June 30, 2022	$	(2.3	)	$	(32.7	)	$	(96.1	)	$	(131.1	)	$	(2.3	)	$	(32.7	)	$	(96.1	)	$	(131.1	)

Balance as of December 31, 2022													$	5.4		$	(15.3	)	$	(98.0	)	$	(107.9	)
Other comprehensive income (loss) before reclassifications														(0.6	)		(3.3	)		4.4			0.5
Amounts reclassified from accumulated other comprehensive loss														(5.2	)		1.4			9.3			5.5
Net other comprehensive income (loss)														(5.8	)		(1.9	)		13.7			6.0
Balance as of June 30, 2023													$	(0.4	)	$	(17.2	)	$	(84.3	)	$	(101.9	)

A reconciliation of the reclassifications from accumulated other comprehensive loss, net of income tax, for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 are summarized as follows:


	Amount Reclassified from Accumulated Other Comprehensive Loss														Amount Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended June 30,						Six Months Ended June 30,								Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021				Recognized Location	2023			2022			2023			2022				Recognized Location
Gains (losses) on cash flow hedges
FX Forward Contracts	$	(1.5	)	$	0.1		$	(1.6	)	$	0.1			Cost of sales	$	1.8		$	(1.5	)	$	5.2		$	(1.6	)		Cost of sales
Total before income taxes		(1.5	)		0.1			(1.6	)		0.1					1.8			(1.5	)		5.2			(1.6	)
Provision for income taxes		—			—			—			—					—			—			—			—
Total, net of income taxes	$	(1.5	)	$	0.1		$	(1.6	)	$	0.1				$	1.8		$	(1.5	)	$	5.2		$	(1.6	)

Amortization of pension and postretirement items
Actuarial losses	$	(0.7	)	$	(1.1	)	$	(1.5	)	$	(2.4	)	(a)	Other income (expense) - net	$	(0.7	)	$	(0.7	)	$	(1.4	)	$	(1.5	)	(a)	Other expense - net
Amortization of prior service cost		0.4			0.7			0.7			1.4		(a)	Other income (expense) - net		—			0.4			—			0.7		(a)	Other expense - net
Total before income taxes		(0.3	)		(0.4	)		(0.8	)		(1.0	)				(0.7	)		(0.3	)		(1.4	)		(0.8	)
Provision for income taxes		—			—			—			—					—			—			—			—
Total, net of income taxes	$	(0.3	)	$	(0.4	)	$	(0.8	)	$	(1.0	)			$	(0.7	)	$	(0.3	)	$	(1.4	)	$	(0.8	)

Foreign currency translation
Losses on foreign currency translation															$	(9.3	)	$	—		$	(9.3	)	$	—			Other expense - net
Total before income taxes																(9.3	)		—			(9.3	)		—
Provision for income taxes																—			—			—			—
Total, net of income taxes															$	(9.3	)	$	—		$	(9.3	)	$	—

Total reclassifications for the period, net of income taxes	$	(1.8	)	$	(0.3	)	$	(2.4	)	$	(0.9	)			$	(8.2	)	$	(1.8	)	$	(5.5	)	$	(2.4	)

(a)

These accumulated other comprehensive loss components are components of net periodic pension cost (see Note 20, “Employee Benefit Plans,” for additional information).

16. Stock-Based Compensation

Equity compensation awards may be granted to certain eligible employees or non-employee directors. A detailed description of the awards granted prior to ~~2022~~2023 is included in the Company’s ~~2021~~2022 Annual Report on Form 10-K. The total number of shares of the Company’s common stock available for awards under the Company’s 2013 Omnibus Incentive Plan is 7,477,395 shares. The total number of shares of the Company’s common stock available for issuance as of June 30, ~~2022~~2023 is ~~3,947,963~~3,290,968 shares.

15Stock-based compensation expense was $

2.3

~~During~~ million and $0.9 million for the three months ended June 30, 2023 and 2022, ~~and 2021, the Company recorded stock-based~~respectively. Stock-based compensation ~~expense of~~was $~~0.9~~5.4 million and $~~2.3~~4.0 million ~~respectively. During~~for the six months ended June 30, ~~2022~~2023 and ~~2021, the Company recorded stock-based compensation of $4.0~~ ~~million and $4.8~~ ~~million,~~2022, respectively. The Company reports stock-based compensation expense within engineering, selling, and administrative expenses in the Condensed Consolidated Statements of Operations. The Company recognizes stock-based compensation expense over the award’s vesting period, subject to retirement, death or disability provisions of the 2013 Omnibus Incentive Plan.

~~During~~The Company granted 22,591 and 20,929 restricted stock units during the three months ended June 30, 2023 and 2022, ~~and 2021,~~respectively. The Company granted ~~20,929~~500,283 and ~~750~~399,552 restricted stock units, ~~were granted to employees, respectively. A total~~inclusive of ~~342,912~~77,576 and ~~317,724~~56,640 ~~restricted stock units, respectively, were granted to employees~~director awards, during the six months ended June 30, 2023 and 2022, ~~and 2021.~~respectively. The restricted stock units granted to employees vest in three annual increments over a three-year period beginning on the grant date and director awards vest immediately on the grant date.

~~During~~No performance shares units were issued by the Company to employees during the three months ended June 30, 2023 and 2022, respectively. A total of 316,022and ~~2021,~~ 0198,334 performance shares units were ~~granted~~issued by the Company to ~~employees. During~~employees during the six months ended June 30, ~~2022~~2023 and ~~2021,~~ ~~198,334~~ ~~and~~ ~~203,697~~ ~~performance shares were granted to employees,~~2022, respectively. Performance ~~shares~~share units 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 share units granted in ~~2022~~2023 are weighted 60% on the 3-year average of the Company’s adjusted EBITDA percentage from ~~2022~~2023 to ~~2024~~2025 and 40% on cumulative non-new machine sales ~~for the year ending~~from January 1, 2023 through December 31, ~~2024.~~2025. The Company defines non-new machine sales as parts sales, used crane sales, rental revenue, service revenue and other revenue. The ~~2022~~2023 performance share units include a +/-20% modifier weighted on total shareholder return relative to a defined peer group of companies during the three-year performance period, not to exceed 200% of target shares granted.

The performance goals for the performance share units granted in ~~2021~~2022 are weighted 60% on the 3-year average of the Company’s adjusted EBITDA percentage from ~~2021~~2022 to ~~2023~~2024 and 40% on non-new machine sales for the year ending December 31, ~~2023.~~2024. The ~~2021~~2022 performance share units include a +/-20% modifier weighted on total shareholder return relative to a defined peer group of companies during the three-year performance period, not to exceed 200% of target shares granted.

~~NaN~~ ~~equity compensation awards were granted to non-employee directors during the three months ended June 30, 2022 and 2021. A total of~~ ~~56,640~~ ~~and~~ ~~56,672~~ equity compensation awards were granted to non-employee directors during the six months ended June 30, 2022 and 2021, respectively. The 2022 and 2021 non-employee director equity compensation awards vested immediately upon the grant date.

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 3three reportable segments: Americas, EURAF, and MEAP. The ~~Americas~~Company aggregates certain of its operating segment includes the North America and South America continents. The EURAF operating segment includes 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 results of the acquired businesses are included in the Americas segment.segments into reportable segments.

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 expense, 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 CODM does not evaluate performance of the reportable segments based on total assets.

The following table shows information by reportable segment for the three and six months ended June 30, ~~2022~~2023 and ~~2021:~~2022:


	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021		2023		2022		2023		2022
Net Sales
Americas	$	226.2	$	185.3	$	442.1	$	325.4	$	319.4	$	226.2	$	583.8	$	442.1
EURAF		209.0		180.8		388.2		335.3		185.8		209.0		364.0		388.2
MEAP		62.0		97.5		125.9		157.2		97.6		62.0		163.3		125.9
Total	$	497.2	$	463.6	$	956.2	$	817.9	$	602.8	$	497.2	$	1,111.1	$	956.2
Segment Operating Income
Americas	$	18.4	$	21.9	$	24.2	$	28.9	$	29.6	$	18.4	$	58.1	$	24.2
EURAF		0.6		5.7		12.0		12.0		6.4		0.6		10.0		12.0
MEAP		8.0		9.8		21.1		16.6		19.0		8.0		27.6		21.1
Total	$	27.0	$	37.4	$	57.3	$	57.5	$	55.0	$	27.0	$	95.7	$	57.3
Depreciation
Americas	$	9.3	$	3.4	$	19.0	$	7.3	$	7.4	$	9.3	$	14.6	$	19.0
EURAF		4.9		5.0		10.0		9.9		5.4		4.9		10.8		10.0
MEAP		0.7		0.5		1.3		1.0		0.6		0.7		1.2		1.3
Corporate		0.7		0.8		1.4		1.5		0.8		0.7		1.5		1.4
Total	$	15.6	$	9.7	$	31.7	$	19.7	$	14.2	$	15.6	$	28.1	$	31.7
Capital Expenditures
Americas	$	2.6	$	2.1	$	5.2	$	2.9	$	19.0	$	2.6	$	23.4	$	5.2
EURAF		4.8		4.8		10.4		11.7		7.2		4.8		11.9		10.4
MEAP		0.7		0.5		1.2		0.7		0.8		0.7		1.0		1.2
Corporate		0		0		0		0.1		—		—		—		—
Total	$	8.1	$	7.4	$	16.8	$	15.4	$	27.0	$	8.1	$	36.3	$	16.8

A reconciliation of the Company’s segment operating income to operating income in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 are summarized as follows:


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021			2023			2022			2023			2022
Segment operating income	$	27.0		$	37.4		$	57.3		$	57.5		$	55.0		$	27.0		$	95.7		$	57.3
Unallocated corporate expenses		(8.7	)		(10.7	)		(21.4	)		(20.1	)		(20.6	)		(8.7	)		(31.0	)		(21.4	)
Unallocated restructuring expense														—			—			(0.1	)		—
Total operating income	$	18.3		$	26.7		$	35.9		$	37.4		$	34.4		$	18.3		$	64.6		$	35.9

Net sales by geographic area for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021		2023		2022		2023		2022
United States	$	199.1	$	165.2	$	391.2	$	286.5	$	270.9	$	199.1	$	484.7	$	391.2
Europe		200.9		176.7		375.1		324.9		178.0		200.9		352.4		375.1
Other		97.2		121.7		189.9		206.5		153.9		97.2		274.0		189.9
Total net sales	$	497.2	$	463.6	$	956.2	$	817.9	$	602.8	$	497.2	$	1,111.1	$	956.2

~~Net~~New machine and non-new machines sales ~~by product~~ for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021		2023		2022		2023		2022
New machine sales	$	358.1	$	348.5	$	687.7	$	594.4	$	452.4	$	358.1	$	808.9	$	687.7
Non-new machine sales		139.1		115.1		268.5		223.5		150.4		139.1		302.2		268.5
Total net sales	$	497.2	$	463.6	$	956.2	$	817.9	$	602.8	$	497.2	$	1,111.1	$	956.2

18. Commitments and Contingencies

The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business which have not been fully resolved. The outcome of any litigation is inherently uncertain. When a loss related to a legal proceeding or claim is probable and reasonably estimable, the Company accrues its best estimate for the ultimate resolution of the matter.

As of June 30, ~~2022,~~2023, various product-related lawsuits were pending. To the extent permitted under applicable law, all of these lawsuits 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, ~~2022,~~2023, the largest self-insured retention level for new occurrences currently maintained by the Company is $3.0 million per occurrence and applies to product liability claims ~~for cranes manufactured~~arising in ~~the United States.~~North America.

~~Product~~As of June 30, 2023, current and long-term product liability reserves ~~recorded~~were $7.7 million and $6.1 million, respectively. As of December 31, 2022, current and long-term product liability reserves were $9.4 million and zero, respectively. Current product liability reserves are included within other liabilities and long-term product liability reserves are included within other non-current liabilities in the Condensed Consolidated Balance ~~Sheets as~~Sheets. These amounts are not reduced for insurance recoveries for claims above the Company's self-insured retention level. As of June 30, ~~2022~~2023 and December 31, ~~2021 were~~2022, the Company had $~~8.8~~0.8 million and $~~9.0~~zero ~~million, respectively. These reserves~~, respectively, of estimated insurance recoveries included in other current assets in the Condensed Consolidated Balance Sheets.

Reserves for product-related lawsuits 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.

As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Company had reserves of $~~57.2~~53.7 million and $~~60.2~~58.0 million, respectively, for warranty and other related 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.

It is reasonably possible that the estimates for warranty ~~costs,~~and other related claims, product liability, 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. The ultimate resolution of these matters, 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.

In July 2017, the Company received an Information Request from the United States Environmental Protection Agency (“U.S. EPA”) relating to the sales of cranes manufactured between January 1, 2014 and July 31, 2017 and the Company’s related participation in the Transition Program for Equipment Manufacturers (the “TPEM” program). The TPEM program allowed equipment manufacturers to delay installing engines meeting Tier 4 final emission standards in their products, subject to certain percentage allowance restrictions. The Company has provided, and continues to provide, information to the U.S. EPA and the U.S. Department of Justice (“U.S. DOJ”) on the approximately 1,420 engines included in the Company’s cranes relating to the TPEM program and other certification matters. The Company is engaged in confidential discussions with the U.S. EPA and U.S. DOJ with respect to these matters.

Based on management's current assessment of the facts underlying these matters, the Company recorded an additional charge of $10.8 million for the three and six months ended June 30, 2023. The total recorded estimated liability in the ~~Company’s~~Company's Condensed Consolidated Balance Sheets is $25.7 million and $14.9 million as of June 30, ~~2022~~2023 and December 31, ~~2021.~~2022, respectively. Other than the foregoing, the Company is unable to provide further meaningful quantification as to the final resolution of these matters. However, the Company calculated the statutory maximum penalties under the Clean Air Act to be approximately $174.0 million. The Company believes it has strong legal and factual defenses and will vigorously defend any allegations of noncompliance and the factors that could apply in the assessment of any civil penalty. Final resolution of these matters may have a material impact on the Company’s financial condition, results of operations or cash flows.

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 ASC 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, ~~2022~~2023 and December 31, ~~2021~~2022 was $~~27.4~~25.4 million and $~~31.0~~27.3 million, respectively. The total amount of buyback commitments given by the Company and outstanding as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022 was $~~40.8~~41.4 million and $~~36.4~~42.5 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 2032. The Company also has various loss guarantees with maximum liabilities of $~~14.2~~11.8 million and

$~~15.8~~15.0 million as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. These amounts are not reduced for amounts the Company would recover from the repossession and subsequent resale of the cranes securing the related guarantees.

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,~~In addition, 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~~incur other warranty related costs outside of ~~costs that may be incurred under~~ its standard warranty period. Costs for other warranty-related work are recorded in the period ata loss is probable and can be reasonably estimated. Below is a table summarizing the ~~time product revenue~~warranty and other warranty related work for the three and six months ended June 30, 2023 and 2022.


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Balance at beginning of period	$	56.4		$	59.4		$	58.0		$	60.2
Adjustments to accruals for warranties		4.4			5.9			11.0			11.8
Settlements made (in cash or in kind) during the period		(7.1	)		(6.7	)		(15.6	)		(12.8	)
Currency translation		0.0			(1.4	)		0.3			(2.0	)
Balance at end of period	$	53.7		$	57.2		$	53.7		$	57.2

Included in the warranty balance as of June 30, 2023 and December 31, 2022 is ~~recognized. These costs primarily include labor~~$9.9 million and ~~materials, as necessary, associated with repair or replacement. The primary factors that affect~~$9.2 million, respectively, of long-term warranty which is recorded in other non-current liabilities in 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. Condensed Consolidated Balance Sheets.

The revenue deferred related to extended warranty periods included in other current and non-current liabilities as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022 was $~~6.3~~7.0 million and $~~7.0~~ ~~million.~~ ~~Below is a table summarizing the warranty activity for the three and six months ended June 30, 2022 and 2021.~~

Three Months Ended
June 30,

Six Months Ended
June 30,

2022

2021

2022

2021

Balance at beginning of period

$
59.4

$
59.9

$
60.2

$
63.2

Accruals for warranties issued during the
period

5.9

7.6

11.8

13.4

Settlements made (in cash or in kind)
during the period

(6.7
)

(8.2
)

(12.8
)

(16.2
)
Currency translation

(1.4
)

0.2

(2.0
)

(0.9
)
Balance at end of period

$
57.2

$
59.5

$
57.2

$
59.5

~~Included in the warranty balance as of June 30, 2022 and December 31, 2021 is $9.1~~6.6 million, ~~and $~~respectively.~~11.2~~ ~~million, respectively, of long-term warranty which is recorded in other non-current liabilities in the Condensed Consolidated Balance Sheets.~~

20. 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 and the related plan. Eligibility for pension coverage is based on retirement qualifications. 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, ~~2022~~2023 and ~~2021~~2022 are summarized as follows:


	Three Months Ended June 30, 2022									Three Months Ended June 30, 2021									Three Months Ended June 30, 2023									Three Months Ended June 30, 2022
							Postretirement									Postretirement									Postretirement									Postretirement
	U.S.			Non-U.S.			Health and			U.S.			Non-U.S.			Health and			U.S.			Non-U.S.			Health and			U.S.			Non-U.S.			Health and
	Pension			Pension			Other			Pension			Pension			Other			Pension			Pension			Other			Pension			Pension			Other
	Plans			Plans			Plans			Plans			Plans			Plans			Plans			Plans			Plans			Plans			Plans			Plans
Service cost - benefits earned during the period	$	0		$	0.5		$	0.1		$	0		$	0.6		$	0.1		$	—		$	0.3		$	—		$	—		$	0.5		$	0.1
Interest cost of projected benefit obligations		0.8			0.3			0.1			0.7			0.3			0.1			1.4			0.6			0.1			0.8			0.3			0.1
Expected return on plan assets		(1.3	)		(0.3	)		0			(1.2	)		(0.2	)		0			(0.9	)		(0.4	)		—			(1.3	)		(0.3	)		—
Amortization of prior service cost		0			0			(0.4	)		0			0			(0.7	)		—			—			—			—			—			(0.4	)
Amortization of actuarial net (gain) loss		0.5			0.4			(0.2	)		0.8			0.5			(0.2	)		0.6			0.4			(0.3	)		0.5			0.4			(0.2	)
Net periodic benefit cost	$	0		$	0.9		$	(0.4	)	$	0.3		$	1.2		$	(0.7	)
Net periodic benefit cost (income)																			$	1.1		$	0.9		$	(0.2	)	$	—		$	0.9		$	(0.4	)

Six Months Ended June 30, 2022

Six Months Ended June 30, 2021

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

$
0.9

$
0.1

$
0

$
1.2

$
0.1

Interest cost of projected benefit obligations

1.6

0.7

0.1

1.4

0.6

0.1

Expected return on plan assets

(2.6
)

(0.6
)

0

(2.4
)

(0.5
)

0

Amortization of prior service cost

0

0

(0.7
)

0

0

(1.4
)
Amortization of actuarial net (gain) loss

1.0

0.8

(0.3
)

1.6

1.0

(0.2
)
Net periodic benefit cost

$
0

$
1.8

$
(0.8
)

$
0.6

$
2.3

$
(1.4
)


	Six Months Ended June 30, 2023									Six Months Ended June 30, 2022
							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	$	—		$	0.6		$	—		$	—		$	0.9		$	0.1
Interest cost of projected benefit obligations		2.8			1.3			0.2			1.6			0.7			0.1
Expected return on plan assets		(1.9	)		(0.8	)		—			(2.6	)		(0.6	)		—
Amortization of prior service cost		—			—			—			—			—			(0.7	)
Amortization of actuarial net (gain) loss		1.2			0.8			(0.6	)		1.0			0.8			(0.3	)
Net periodic benefit cost (income)	$	2.1		$	1.9		$	(0.4	)	$	—		$	1.8		$	(0.8	)

The components of net periodic benefit cost other than the service cost component are included in other ~~income (expense)~~expense - net in the Condensed Consolidated Statements of Operations.

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

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, including the financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations therein, and the interim condensed consolidated financial statements and accompanying notes included in this Quarterly Report on Form 10-Q.

All dollar amounts are in millions throughout the tables included in Management’s Discussion and Analysis of Financial Conditions and Results of Operations unless otherwise indicated.

All of the statements in this Quarterly Report on Form 10-Q, other than historical facts, are forward-looking statements, including, without limitation, the statements made in the “Management's Discussion and Analysis of Financial Condition and Results of Operations.” As a general matter, forward-looking statements are those focused upon anticipated events or trends, expectations and beliefs relating to matters that are not historical in nature. The words “could,” “should,” “may,” “feel,” “anticipate,” “aim,” “preliminary,” “expect,” “believe,” “estimate,” “intend,” “intent,” “plan,” “will,” “foresee,” “project,” “forecast,” or the negative thereof or variations thereon, and similar expressions identify forward-looking statements.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for these forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that forward-looking statements are subject to known and unknown risks, uncertainties and other factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the Company. These known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those matters expressed in, anticipated by or implied by such forward-looking statements. These risks, uncertainties, and other factors include, but are not limited to:

These statements reflect the current views and assumptions of management with respect to future events. Except to the extent required by the federal securities laws, the Company does not undertake, and hereby disclaims, any duty to update these forward-looking statements, even though its situation and circumstances may change in the future. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. The inclusion of any statement in this report does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.

The Company ~~was negatively impacted by inflationary pressures mainly related~~continues to ~~raw material input~~actively monitor global supply chain, labor and logistics ~~costs~~constraints which had a negative impact on the Company's ability to timely source parts and complete and ship units for the three and six months ended June 30, ~~2022. The~~2023. While the Company has ~~begun to see an easing in raw material input costs, however,~~experienced some relief of the Company anticipates continued inflationary pressures related to wages, logistics, energy and component costs. The Company has implemented price increases and provisional pricing strategies to offset inflationary pressures. There is a delay, however, in the realization of pricing due to longer lead times of orders in the backlog, exacerbated by delays in shipments. Continuing or worsening inflation may have a material adverse impact on the Company's financial condition, results of operations or cash flows.

~~Supply~~supply chain ~~labor~~ and logistics ~~challenges have impacted the Company's ability to source parts and complete units, which negatively impacted the Company’s results of operations and cash flows~~constraints, supply chains for ~~the three and six months ended June 30, 2022.~~certain key components remain distressed. The Company continues to actively monitor and manage ~~these challenges~~supply chain constraints through alternative sourcing of parts and adapting production to limit waste and inefficiencies in the facilities. Continuing or worsening supply chain, labor and logistics ~~challenges~~constraints may have a material adverse impact on the Company's financial condition, results of operations or cash flows.

~~Russia’s invasion and~~As of June 30, 2023, the ~~related economic sanctions by Western governments on~~Company's operations in Russia have resulted in volatile raw material, component and energy costs in Europe, exacerbating the inflation situation. In addition, the related sanctions have created uncertainty in Europe as it relates to the supply of oil and natural gas. Forbeen substantially curtailed. As a result, for the three and six months ended June 30, ~~2022, the Company’s EURAF segment was adversely impacted by rising component and raw material input costs. To manage the situation,~~2023, the Company has enacted price increases and looked at alternative sources for raw materials and components. However, ongoing economic sanctions targeting Russia may disrupt the Company’s supply chain and impact access to certain materials which may have a material adverse impactreleased $9.3 million of non-cash foreign currency translation adjustments recorded in accumulated other comprehensive loss on the ~~Company’s financial condition, results~~Condensed Consolidated Balance Sheets to other expense – net in the Condensed Consolidated Statement of Operations. The Company does not anticipate material future charges related to the curtailment of operations or cash flows. Additionally, the conflict has also heightened the threat of cybersecurity attacks. In response, the Company has increased monitoring of such threats and continues to take steps to enhance the security of its systems.

~~In the second quarter of 2022, the Company began to curtail its operations~~ in Russia due to the ongoing conflict in Ukraine. The Company’s operations in Russia accounted for less than two percent of consolidated net sales in 2021 and were primarily limited to sales and aftermarket support with less than twenty employees. As part of the curtailment, the Company cancelled $21.0 million of orders in February 2022 and stopped taking new orders. The Company estimates future charges between $5.0 million and $15.0 million will be incurred throughout the curtailment process. The amount of estimated charges could materially differ from this range based on factors such as regulatory changes, additional sanctions or changes in foreign currency exchange rates.Russia.

The Company manages its business primarily on a geographic basis. The ~~Company’s~~Company has three reportable ~~operating segments consist of~~segments: the Americas segment, EURAF segment and ~~MEAP.~~MEAP segment. Further information regarding the Company’s reportable segments can be found in Note 17, “Segments,” to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.


	Three Months Ended June 30,										Six Months Ended June 30,											Three Months Ended June 30,										Six Months Ended June 30,
	2022		2021		Dollar Change			Percentage Change			2022		2021		Dollar Change			Percentage Change				2023		2022		Dollar Change			Percentage Change			2023		2022		Dollar Change			Percentage Change
Net Sales
Americas	$	226.2	$	185.3	$	40.9			22.1	%	$	442.1	$	325.4	$	116.7			35.9	%		$	319.4	$	226.2	$	93.2			41.2	%	$	583.8	$	442.1	$	141.7			32.1	%
EURAF		209.0		180.8		28.2			15.6	%		388.2		335.3		52.9			15.8	%			185.8		209.0		(23.2	)		(11.1	)%		364.0		388.2		(24.2	)		(6.2	)%
MEAP		62.0		97.5		(35.5	)		(36.4	)%		125.9		157.2		(31.3	)		(19.9	)%			97.6		62.0		35.6			57.4	%		163.3		125.9		37.4			29.7	%

Segment Operating Income
Segment Operating Income (Loss)																					Segment Operating Income (Loss)
Americas	$	18.4	$	21.9	$	(3.5	)		(16.0	)%	$	24.2	$	28.9	$	(4.7	)		(16.3	)%		$	29.6	$	18.4	$	11.2			60.9	%	$	58.1	$	24.2	$	33.9			140.1	%
EURAF		0.6		5.7		(5.1	)		(89.5	)%		12.0		12.0		—			—	%			6.4		0.6		5.8		*				10.0		12.0		(2.0	)		(16.7	)%
MEAP		8.0		9.8		(1.8	)		(18.4	)%		21.1		16.6		4.5			27.1	%			19.0		8.0		11.0			137.5	%		27.6		21.1		6.5			30.8	%

*Measure not meaningful

Americas segment net sales increased ~~22.1%~~41.2% for the three months ended June 30, ~~2022~~2023 to ~~$226.2~~$319.4 million from ~~$185.3~~$226.2 million for the ~~three months ended June 30, 2021.~~same period in 2022. The increase was primarily attributable to higher new machine sales as a result of a higher shippable backlog entering the quarter, higher non-new machine sales ~~incremental net sales from the acquisitions~~ and pricing actions. ~~While backlog was higher entering the quarter, supply chain constraints impacted the Company's ability to produce and ship certain products.~~

Americas segment operating income ~~decreased $3.5~~increased $11.2 million for the three months ended June 30, ~~2022~~2023 to ~~$18.4~~$29.6 million from ~~$21.9~~$18.4 million for the ~~three months ended June 30, 2021.~~same period in 2022. The ~~decrease~~increase was primarily ~~attributable~~due to the higher net sales and favorable product mix. This was partially offset by charges for certain product-related lawsuits, higher material costs and ~~transportation costs.~~higher labor costs in engineering, selling and administrative expenses.

Americas segment net sales increased ~~35.9%~~32.1% for the six months ended June 30, ~~2022~~2023 to ~~$442.1~~$583.8 million from ~~$325.4~~$442.1 million for the ~~six months ended June 30, 2021.~~same period in 2022. The increase was primarily attributable to higher new machine sales as a result of a higher shippable backlog entering the year, higher non-new machine sales ~~incremental net sales from the acquisitions~~ and pricing actions. ~~While backlog was higher entering the year, supply chain constraints impacted the Company's ability to produce and ship certain products.~~

Americas segment operating income ~~decreased $4.7~~increased $33.9 million for the six months ended June 30, ~~2022~~2023 to ~~$24.2~~$58.1 million from ~~$28.9~~$24.2 million for the ~~six months ended June 30, 2021.~~same period in 2022. The ~~decrease~~increase was primarily ~~attributable~~due to the higher net sales and favorable product mix. This was partially offset by charges for certain product-related lawsuits, higher material costs and ~~transportation costs.~~higher labor costs in engineering, selling and administrative expenses.

EURAF segment net sales ~~increased 15.6%~~decreased 11.1% for the three months ended June 30, ~~2022~~2023 to ~~$209.0~~$185.8 million from ~~$180.8~~$209.0 million for the ~~three months ended June 30, 2021.~~same period in 2022. The ~~increase~~decrease was primarily attributable to ~~higher~~lower new and non-new machine sales, ~~and~~partially offset by pricing actions. ~~While backlog was higher entering the quarter, supply chain constraints impacted the Company's ability to produce and ship certain products. EURAF~~Segment net sales was ~~unfavorably~~favorably impacted by ~~$23.8~~$4.0 million from changes in foreign currency exchange rates.

EURAF segment operating income ~~decreased $5.1~~increased $5.8 million for the three months ended June 30, ~~2022~~2023 to ~~$0.6~~$6.4 million from ~~$5.7~~$0.6 million for the ~~three months ended June 30, 2021. The decrease was primarily attributable to higher material and transportation costs. Operating income was unfavorably impacted by $2.1 million from changes~~same period in ~~foreign currency exchange rates.~~

~~EURAF net sales increased 15.8% for the six months ended June 30, 2022 to $388.2 million from $335.3 million for the six months ended June 30, 2021.~~2022. The increase was primarily attributable to ~~higher new machine sales~~favorable product mix and pricing actions. ~~While backlog~~Segment operating income was ~~higher entering the year, supply chain constraints impacted the Company's ability to produce and ship certain products. EURAF net sales was unfavorably~~favorably impacted by ~~$37.1~~$0.8 million from changes in foreign currency exchange rates.

EURAF ~~operating income of $12.0 million~~segment net sales decreased 6.2% for the six months ended June 30, ~~2022 remained flat year over year. This~~2023 to $364.0 million from $388.2 million for the same period in 2022. The decrease was primarily attributable to ~~higher net~~lower new machine sales, partially offset by ~~higher material and transportation costs. Operating income~~pricing actions. Segment net sales was unfavorably impacted by ~~$3.8~~$4.0 million from changes in foreign currency exchange rates.

EURAF segment operating income decreased $2.0 million for the six months ended June 30, 2023 to $10.0 million from $12.0 million for the same period in 2022. The decrease was primarily attributable to lower net sales and higher labor costs in engineering, selling and administrative expenses. This was partially offset by favorable product mix and pricing actions. Segment operating income was favorably impacted by $0.1 million from changes in foreign currency exchange rates.

MEAP segment net sales ~~decreased 36.4%~~increased 57.4% for the three months ended June 30, ~~2022~~2023 to ~~$62.0~~$97.6 million from ~~$97.5~~$62.0 million for the ~~three months ended June 30, 2021.~~same period in 2022. The ~~decrease~~increase was primarily attributable to ~~lower~~higher new and non-new machine ~~sales year over year, partially offset by pricing actions. MEAP~~sales. Segment net sales was unfavorably impacted by ~~$4.1~~$0.9 million from changes in foreign currency exchange rates.

MEAP segment operating income ~~decreased $1.8~~increased $11.0 million for the three months ended June 30, ~~2022~~2023 to ~~$8.0~~$19.0 million from ~~$9.8~~$8.0 million for the ~~three months ended June 30, 2021.~~same period in 2022. The ~~decrease~~increase was primarily attributable to ~~lower~~the higher net sales and favorable product mix, partially offset by ~~$3.6~~higher labor costs in engineering, selling and administrative expenses. Segment operating income was unfavorably impacted by $0.1 million ~~of higher prior year expenses due to a write-off of a long-term note receivable~~ from ~~the 2014 divestiture of the Company's Chinese joint venture.~~changes in foreign currency exchange rates.

MEAP segment net sales ~~decreased 19.9%~~increased 29.7% for the six months ended June 30, ~~2022~~2023 to ~~$125.9~~$163.3 million from ~~$157.2~~$125.9 million for the ~~six months ended June 30, 2021.~~same period in 2022. The ~~decrease~~increase was primarily attributable to ~~lower~~higher new and non-new machine ~~sales year over year, partially offset by pricing actions. MEAP~~sales. Segment net sales was unfavorably impacted by ~~$6.8~~$4.2 million from changes in foreign currency exchange rates.

MEAP segment operating income increased ~~$4.5~~$6.5 million for the six months ended June 30, ~~2022~~2023 to ~~$21.1~~$27.6 million from ~~$16.6~~$21.1 million for the ~~six months ended June 30, 2021.~~same period in 2022. The increase was primarily attributable to ~~lower engineering, selling~~the higher net sales and favorable product mix. This was partially offset by higher labor and administrative ~~expenses as a result of $3.6 million of higher prior year expense due to a write-off of a long-term note receivable from the 2014 divestiture of the Company's Chinese joint venture~~costs and $4.8 million of ~~benefit~~income recorded in the ~~current~~prior year ~~from~~related to the partial recovery of the previously written-off long-term note receivable ~~partially offset~~from the 2014 divestiture of the Company’s Chinese joint venture. Segment operating income was unfavorably impacted by ~~lower net sales.~~$0.5 million from changes in foreign currency exchange rates.

Results of Operations For The Three and Six Months Ended June 30, 2023 and 2022:

~~Results of Operations for the three and six months ended June 30, 2022 and 2021:~~

Backlog represents the dollar value of orders which are expected to be recognized in net sales in the future. Orders are included in backlog when an executed binding contract with a price that has a floor has been received but has not been recognized in net sales. Orders and backlog are not measures defined by ~~accounting principles generally accepted in the United States of America (“GAAP”)~~GAAP and our methodology for determining orders and backlog may vary from the methodology used by other companies. Management uses orders and backlog for capacity and resource planning. We believe this information is useful to investors to provide an indication of our future revenues.

Orders for the three months ended June 30, ~~2022 decreased 19.2%~~2023 increased 26.8% to ~~$434.0~~$550.5 million from ~~$537.2~~$434.0 million for the same period in ~~2021.~~2022. The ~~decrease in orders~~increase was primarily attributable to ~~softening global~~higher demand ~~because~~in all of ~~continuing inflationary pressures, rising interest rates and overall near-term economic uncertainty.~~the Company’s segments. Orders were ~~unfavorably~~favorably impacted by ~~$22.6~~$4.0 million from changes in foreign currency exchange rates.

Orders for the six months ended June 30, ~~2022 decreased 9.4%~~2023 increased 17.4% to ~~$915.6~~$1,075.3 million from ~~$1,010.8~~$915.6 million for the same period in ~~2021.~~2022. The ~~decrease in orders~~increase was primarily attributable to ~~softening global~~higher demand in all of the second quarter of 2022 because of continuing inflationary pressures, rising interest rates and overall near-term economic uncertainty. In addition, the Company cancelled $21.0 million of orders during the first quarter of 2022, which were included in backlog as of December 31, 2021, due to Russia's invasion of Ukraine.Company’s segments. Orders were unfavorably impacted by ~~$37.2~~$4.5 million from changes in foreign currency exchange rates.

As of June 30, ~~2022,~~2023, total backlog was ~~$947.8~~$1,024.6 million, a ~~6.2%~~3.0% decrease from the December 31, ~~2021~~2022 backlog of ~~$1,010.9~~$1,056.0 million, and a ~~28.8%~~8.1% increase from the June 30, ~~2021~~2022 backlog of ~~$736.1~~$947.8 million. The decrease in backlog from December 31, ~~2021,~~2022, was primarily attributable to ~~lower orders due to softening global demand, partially offset by delays in~~higher shipments ~~due to~~as a result of improving supply chain ~~constraints.~~conditions. Backlog was ~~unfavorably~~favorably impacted from changes in foreign currency exchange rates by ~~$36.7~~$5.3 million and ~~$55.9~~$11.9 million from December 31, ~~2021~~2022 and June 30, ~~2021,~~2022, respectively.

~~Net~~Consolidated net sales for the three months ended June 30, ~~2022~~2023 increased ~~7.2%~~21.2% to ~~$497.2~~$602.8 million from ~~$463.6~~$497.2 million in the same period in ~~2021.~~2022. The increase was primarily attributable to higher new and non-new machine sales in the Americas and ~~EURAF~~MEAP segments and global pricing ~~actions and higher non-new machine sales. While backlog~~actions. This was ~~higher entering~~partially offset by lower sales in the quarter, supply chain constraints impacted the Company's ability to produce and ship certain products. The acquisitions of Aspen and the crane business of H&E contributed to the increase in net sales by $44.8 million.EURAF segment. Net sales was ~~unfavorably~~favorably impacted by ~~$27.9~~$3.1 million from changes in foreign currency exchange rates.

~~Net~~Consolidated net sales for the six months ended June 30, ~~2022~~2023 increased ~~16.9%~~16.2% to ~~$956.2~~$1,111.1 million from ~~$817.9~~$956.2 million for the same period in ~~2021.~~2022. The increase was primarily attributable to higher new and non-new machine sales in the Americas and ~~EURAF~~MEAP segments and global pricing ~~actions and higher non-new machine sales. While backlog~~actions. This was ~~higher entering~~partially offset by lower sales in the year, supply chain constraints impacted the Company's ability to produce and ship certain products. The acquisitions of Aspen and the crane business of H&E contributed to the increase in net sales by $86.1 million.EURAF segment. Net sales was unfavorably impacted by ~~$43.7~~$8.1 million from changes in foreign currency exchange rates.

Gross profit for the three months ended June 30, ~~2022~~2023 was ~~$88.7~~$123.0 million, ~~a decrease~~an increase of ~~$1.7~~$34.3 million compared to ~~$90.4~~$88.7 million for the same period in ~~2021.~~2022. The ~~decrease~~increase was primarily attributable to ~~higher material and transportation costs, partially offset by~~the higher net ~~sales.~~sales and favorable product mix. Gross profit was ~~unfavorably~~favorably impacted by ~~$5.9~~$0.5 million from changes in foreign currency exchange rates.

Gross profit percentage ~~decreased~~increased in the three months ended June 30, ~~2022~~2023 to ~~17.8%~~20.4% from ~~19.5%~~17.8% for the same period in ~~2021~~2022 primarily due to ~~increases in material~~favorable product mix and ~~transportation costs.~~pricing actions.

Gross profit for the six months ended June 30, ~~2022~~2023 was ~~$173.7~~$229.3 million, an increase of ~~$14.9~~$55.6 million compared to ~~$158.8~~$173.7 million for the same period in ~~2021.~~2022. The increase was primarily attributable to the higher net sales ~~in the Americas~~ and ~~EURAF segments, partially offset by higher material and transportation costs.~~favorable product mix. Gross profit was unfavorably impacted by ~~$9.6~~$1.6 million from changes in foreign currency exchange rates.

Gross profit percentage ~~decreased~~increased during the six months ended June 30, ~~2022~~2023 to ~~18.2%~~20.6% from ~~19.4%~~18.2% for the same period in ~~2021~~2022 primarily due to ~~increases in material~~favorable product mix and ~~transportation costs.~~pricing actions.

Engineering, selling, and administrative expenses increased ~~9.0%~~26.4% to ~~$69.3~~$87.6 million for the three months ended June 30, ~~2022~~2023 compared to ~~$63.6~~$69.3 million for the same period in ~~2021.~~2022. The increase was primarily attributable to a $10.8 million charge related to a legal matter with the ~~acquisitions which accounted~~U.S. EPA and higher employee related costs. Engineering, selling, and administrative expenses were unfavorably impacted by $0.4 million from changes in foreign currency exchange rates.

Engineering, selling and administrative expenses increased 19.8% to $162.7 million for ~~incremental~~the six months ended June 30, 2023 compared to $135.8 million for the same period in 2022. The increase was primarily attributable to a $10.8 million charge related to a legal matter with the U.S. EPA, higher employee related costs ~~of $11.5 million. This was partially offset by $3.6~~and $4.8 million of ~~higher~~benefit recorded in the prior year ~~expenses due to~~from the ~~write-off~~partial recovery of athe previously written-off long-term note receivable from the 2014 divestiture of the Company's Chinese joint ~~venture and lower stock-based compensation expense of $1.4 million.~~venture. Engineering, selling and administrative expenses were favorably impacted by ~~$3.7~~$1.2 million from changes in foreign currency exchange rates.

Engineering, selling and administrative expenses increased 12.0% to $135.8 million for the six months ended June 30, 2022 compared to $121.3 million for the same period in 2021. The increase was primarily attributable to the acquisitions which accounted for incremental costs of $22.1 million and higher employee related costs. This was partially offset by $3.6 million of higher prior year expense due to a write-off of a long-term note receivable from the 2014 divestiture of the Company's Chinese joint venture, $4.8 million of benefit in the current year from the partial recovery of the previously written-off long-term note receivable and lower stock-based compensation expense of $0.8 million. Engineering, selling and administrative expenses were favorably impacted by $5.8 million from changes in foreign currency exchange rates.

Interest expense for the three months ended June 30, ~~2022~~2023 was ~~$7.9~~$9.0 million compared to ~~$7.3~~$7.9 million for the ~~three months ended June 30, 2021. The increase~~same period in ~~interest~~2022. Interest expense isincreased year-over-year primarily due to higher ~~outstanding balances of variable rate debt.~~interest rates on borrowings from the Company's ABL revolving credit facility. See further detail at Note 11, “Debt” to the Condensed Consolidated Financial Statements.

Interest expense for the six months ended June 30, ~~2022~~2023 was ~~$15.3~~$17.1 million compared to ~~$14.4~~$15.3 million for the ~~six months ended June 30, 2021. The increase~~same period in ~~interest~~2022. Interest expense isincreased year-over-year primarily due to higher ~~outstanding balances of variable rate debt.~~interest rates on borrowings from the Company's ABL revolving credit facility. See further detail at Note 11, “Debt” to the Condensed Consolidated Financial Statements.

Other ~~income (expense)~~expense - net was ~~$2.1~~$10.0 million ~~of expense~~ during the three months ended June 30, ~~2022~~2023 and ~~$2.8~~$2.1 million ~~of income~~ for the same period in ~~2021.~~2022. Other expense – net during the three months ended June 30, 2023 was primarily composed of a $9.3 million non-cash write-off of foreign currency translation adjustments related to the curtailment of operations in Russia and $1.5 million of pension benefit and postretirement health costs. This was partially offset by $1.4 million of net foreign currency gains and a $0.2 million gain on disposal of property, plant and equipment. Other income ~~(expense)~~ – net during the three months ended June 30, 2022 was primarily composed of $2.6 million of net foreign currency losses and a $0.5 million charge related to non-capitalizable one-time legal and debt related costs, partially offset by a $1.1 million gain on disposal of property, plant and equipment.

Other ~~income (expense)~~expense - net was $11.1 million during the six months ended June 30, 2023 and $2.3 million for the same period in 2022. Other expense – net during the ~~three~~six months ended June 30, ~~2021~~2023 was primarily composed of ~~$3.1~~a $9.3 million non-cash write-off of ~~net~~ foreign currency ~~gains, partially offset by $0.2~~translation adjustments related to the curtailment of operations in Russia and $3.1 million of pension benefit and postretirement health costs.

~~Other income (expense) - net~~ This was ~~$2.3~~partially offset by $1.8 million of ~~expense during the six months ended June 30, 2022~~net foreign currency gains and ~~$0.7~~a $0.2 million gain on disposal of ~~income for the same period in 2021.~~property, plant and equipment. Other ~~income (expense)~~expense – net during the six months ended June 30, 2022 was primarily composed of $3.2 million of net foreign currency losses and a $0.5 million charge related to non-capitalizable one-time legal and debt related costs, partially offset by a $1.1 million gain on disposal of property, plant and equipment. Other income (expense) – net during the six months ended June 30, 2021 was primarily composed of $1.4 million of net foreign currency gains, partially offset by $0.3 million of pension benefit and postretirement health costs.

For the three months ended June 30, ~~2022,~~2023 and ~~2021,~~2022, the Company recorded a benefit for income taxes of ~~$7.1~~$5.2 million and ~~a provision for income taxes of $4.0~~$7.1 million, respectively. During the three months ended June 30, ~~2022, the Company released~~2023, a ~~$12.1~~discrete net tax benefit of $13.5 million ~~uncertain tax position, inclusive~~was recorded, of ~~$1.2~~which $13.9 million ~~of interest,~~is related to ~~U.S. Federal~~the release of a remaining valuation allowance against tax ~~planning strategies implemented as a result of~~assets after estimated current year utilization. During the CARES Act. This was partially offset by the jurisdictional mix of the year-to-date income before income taxes. In addition, the Company’s effective tax rate varies from the U.S. federal statutory rate of 21% due to results of foreign operations that are subject to income taxes at different statutory rates.

~~For the six~~three months ended June 30, 2022, ~~and 2021, the Company~~a discrete tax benefit of $11.0 million was recorded, a benefit for income taxes of $0.6 million and a provision for income taxes of $8.2 million, respectively. The year-over-year decrease in the Company's provision for income taxes for the six months ended June 30, 2022, primarily ~~relates~~related to the release of a $12.1 million uncertain tax position, inclusive of $1.2 million of interest, related to U.S. Federal tax planning strategies implemented as a result of the CARES Act. ~~This was partially offset by the jurisdictional mix of the year-to-date income before income taxes. In addition,~~The increase in the Company’s ~~effective~~ tax ~~rate varies from~~benefit for the ~~U.S. federal statutory rate of 21% due~~three ended June 30, 2023, relative to ~~results of foreign operations that are subject~~the prior year primarily relates to an increase in the discrete tax benefit recorded year over year.

For the six months ended June 30, 2023 and 2022, the Company recorded a benefit for income taxes ~~at different statutory rates.~~of $1.0 million and $0.6 million, respectively. The increase in the Company’s tax benefit for the six months ended June 30, 2023, relative to the prior year primarily relates to an increase in the discrete tax benefit recorded year over year.

~~The table below shows a~~A summary of cash flows for the six months ended June 30, 2023 and 2022 ~~and 2021:~~are as follows:

Cash flows ~~provided by~~used for operating activities of ~~$5.7~~$3.1 million for the six months ended June 30, ~~2022~~2023 decreased ~~$44.0~~$8.8 million from cash provided by operating activities of ~~$49.7~~$5.7 million for the ~~six months ended June 30, 2021.~~same period in 2022. The decrease in net cash provided by operating activities was due to higher working capital driven by an increase in inventory ~~as a result~~due to cost inflation, logistics

constraints and increased stocking of ~~supply chain constraints that impacted completion and shipment of orders during the second quarter of 2022. The~~inventory due to higher ~~inventory~~demand. This was partially offset by higher net income adjusted for non-cash items, including higher depreciation compared to the prior year due to the acquisitions and higher unrealized foreign currency losses due to the strengthening of the U.S. dollar. This was partially offset by a one-time non-cash tax benefit from the release of an uncertain tax position in the U.S.items.

Net cash used for investing activities of ~~$13.1~~$31.2 million for the six months ended June 30, ~~2022 decreased $2.2~~2023 increased $18.1 million from $~~15.3~~13.1 million for ~~six months ended June 30, 2021.~~the same period in 2022. The ~~decrease~~increase in net cash used for investing activities was primarily due to a$19.5 million of higher capital expenditures and $2.3 million of cash ~~receipt~~receipts in the prior year related to the finalization of the purchase price for the acquisition of the crane business of H~~&E and~~&E. This was partially offset by $3.7 million of higher proceeds from the sale of property, plant and equipment ~~partially offset by higher capital expenditures~~ as compared to the prior year.

Net cash used for financing activities of ~~$25.9~~$4.4 million for the six months ended June 30, ~~2022 increased $23.3~~2023 decreased $21.5 million from $~~2.6~~25.9 million for the ~~six months ended June 30, 2021.The increase~~same period in 2022. The decrease in net cash used for financing activities was primarily due to ~~a $20.0~~$2.0 million ~~payment~~ of ~~outstanding amounts~~net proceeds under the ~~Company's~~Company’s ABL Revolving Credit Facility ~~$1.8~~as compared to $20.0 million of net payments ~~for debt issuance and other debt related costs and $1.9 million of common stock repurchases.~~in the prior year. This was partially offset by ~~lower payments on other debt and lower proceeds from the exercises~~$3.6 million of higher common stock ~~options~~repurchases as compared to the prior year.

The Company’s liquidity position as of June 30, ~~2022,~~2023, December 31, ~~2021~~2022 and June 30, ~~2021~~2022 is summarized as follows:

The Company believes its liquidity and expected cash flows from operations are sufficient to meet expected working capital, capital expenditure, and other general ongoing operational needs in the subsequent twelve months.

The Company has historically relied primarily on cash flows from operations, borrowings under revolving credit facilities, issuances of notes, and other forms of debt financing as its sources of cash.

The maximum availability under the Company’s current ABL Revolving Credit Facility is $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 basis, 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 ~~maturity date~~term of ~~May 19, 2027 (with a springing maturity date of December 30, 2025 if the 2026 Notes have not been repaid in full or refinanced prior to December 30, 2025),~~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.

In addition to the ABL Revolving Credit Facility, the Company has access to non-committed overdraft facilities in Europe and a committed facility in China to fund working ~~capital in Europe and China.~~capital. There are six facilities, of which ~~four~~five facilities are denominated in Euros totaling ~~€28.0 million, one facility denominated in U.S. dollars totaling $9.5~~€36.0 million and one facility denominated in Chinese Yuan totaling ¥30.0 million. Total U.S. dollar availability as of June 30, ~~2022~~2023 for the six overdraft facilities is ~~$43.3~~$43.4 million, with ~~$10.1~~$4.2 million outstanding.

Outstanding debt as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022 is summarized as follows:

Both the ABL Revolving Credit Facility and 2026 Notes include customary covenants and events of default. Refer to Note 11, “Debt,” to the Condensed Consolidated Financial Statements for additional discussions of covenants for 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. From time to time, the Company seeks to opportunistically raise capital in the debt capital markets and bank credit markets.

The Company's current restructuring activities will be substantially completed in the second half of 2022. The remaining current restructuring activity will have an immaterial impact on the Company's results of operations and cash flows.

The Company uses EBITDA, adjusted EBITDA, ~~adjusted operating income~~ and free cash flows, which are financial measures that are not prepared in accordance with ~~U.S.~~ GAAP, as additional metrics to evaluate the Company’s performance. The Company believes these non-GAAP measures provide important supplemental information to readers regarding business trends that can be used in evaluating its results of operations because these financial measures provide a consistent method of comparing financial performance and are commonly used by investors to assess performance. These non-GAAP financial measures should be considered together with, and are not substitutes for, the ~~U.S.~~ GAAP financial information provided herein.

The Company defines EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. The Company defines adjusted EBITDA as EBITDA plus the addback or subtraction of restructuring, other ~~income (expense),~~expense - net, and certain other ~~charges. The Company defines adjusted operating income as operating income plus the addback or subtraction of restructuring and certain other charges.~~non-recurring items. The reconciliation of net income (loss) to EBITDA, and further to adjusted EBITDA ~~and to adjusted operating income and operating income~~ for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 and trailing twelve months is summarized as follows.

Free cash flows is defined as net cash provided by (used for) operating activities less cash outflow from investment in capital expenditures. The reconciliation of net cash provided by (used for) operating activities to free cash flows for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 is summarized as follows.

The Company's critical accounting policies have not materially changed since the ~~2021~~2022 Annual Report on Form 10-K was filed. Refer to the Critical Accounting Policies in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 for information about the Company’s policies, methodology and assumptions related to critical accounting policies.

The Company’s market risk disclosures have not materially changed since the ~~2021~~2022 Annual Report on Form 10-K was filed. The Company’s quantitative and qualitative disclosures about market risk are incorporated by reference from Part II, Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

Disclosure Controls and Procedures: The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act, and that such information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely discussions regarding required disclosure.

Changes in Internal Control Over Financial Reporting: The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). During the period covered by this report, the Company made no changes that have materially affected, or that are reasonably likely to materially affect, its internal control over financial reporting.

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, which was filed with the Securities and Exchange Commission on February ~~22, 2022.~~24, 2023.

As of June 30, ~~2022,~~2023, the Company ~~had~~has $2.1 million remaining under an authorization from the Board of Directors to purchase up to $30.0 million of the Company’s common stock at management’s discretion. AsThe Company's share repurchases program purchases shares in the open market to offset stock-based awards issued in conjunction with the Company's 2013 Omnibus Incentive Plan.

The Company's purchases of equity securities in the second quarter 2023 are summarized as follows:

Shares withheld to satisfy statutory tax withholding requirements related to the vesting of stock-based awards are not issued or considered share repurchases under the Company's share repurchase program and, therefore, are excluded from the table above.

(c) During the three months ended June 30, ~~2022,~~2023, no director or Section 16 officer of the Company ~~had $8.7 million remaining under this authorization.~~adopted a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement", as each term is defined in Item 408 of Regulation S-K.

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


Wisconsin		39-0448110
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification Number)


11270 West Park Place Suite 1000
Milwaukee, Wisconsin		53224
(Address of principal executive offices)		(Zip Code)


Average quarterly availability	Alternative base rate spread	SOFR spread
≥ 50% of Aggregate Commitment	0.25%	1.25%
< 50% of Aggregate Commitment	0.50%	1.50%


	June 30, 2022			December 31, 2021			June 30, 2021			June 30, 2023			December 31, 2022			June 30, 2022
Cash and cash equivalents	$	42.5		$	75.4		$	158.5		$	25.9		$	64.4		$	42.5
Revolver borrowing capacity		275.0			239.3			253.6			275.0			275.0			275.0
Other debt availability		43.3			47.2			45.0			43.4			43.8			43.3
Less: Borrowings on revolver		(80.0	)		(100.0	)		—			(82.0	)		(80.0	)		(80.0	)
Less: Borrowings on other debt		(10.1	)		(4.7	)		—			(4.2	)		(4.3	)		(10.1	)
Less: Outstanding letters of credit		(3.0	)		(3.0	)		(3.0	)		(3.2	)		(3.0	)		(3.0	)
Total liquidity	$	267.7		$	254.2		$	454.1		$	254.9		$	295.9		$	267.7


Periods	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Approximate Dollar Value (in millions) of Shares That May Yet Be Purchased Under the Program
April 2022		—	$	—		—	$	10.6
May 2022		30,000	$	12.2		30,000	$	10.2
June 2022		120,000	$	13.0		120,000	$	8.7
Total		150,000				150,000


Large accelerated filer	☐	Accelerated filer	☒	~~Accelerated filer~~	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


Net working capital	$	48.8
Property, plant and equipment		13.1
Rental fleet		48.2
Goodwill		7.8
Noncompetition agreement intangible		3.8
Customer relationships intangible		15.1
Total fair value consideration	$	136.8


	Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Total		Recognized Location
FX Forward Contracts	$	—	$	0.3	$	—	$	0.3	Accounts payable and accrued expenses


	Americas - Manufacturing		Americas - Distribution			MEAP			Consolidated
Balance as of January 1, 2021	$	166.5	$	0		$	68.6		$	235.1
Foreign currency impact		0		0			(0.5	)		(0.5	)
Acquisitions		0		15.1			0			15.1
Balance as of December 31, 2021		166.5		15.1			68.1			249.7
Foreign currency impact		0		0			(1.7	)		(1.7	)
Purchase accounting adjustments		0		(0.7	)		0			(0.7	)
Balance as of June 30, 2022	$	166.5	$	14.4		$	66.4		$	247.3


	Six Months Ended June 30, 2022									Six Months Ended June 30, 2021
							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		$	0.9		$	0.1		$	0		$	1.2		$	0.1
Interest cost of projected benefit obligations		1.6			0.7			0.1			1.4			0.6			0.1
Expected return on plan assets		(2.6	)		(0.6	)		0			(2.4	)		(0.5	)		0
Amortization of prior service cost		0			0			(0.7	)		0			0			(1.4	)
Amortization of actuarial net (gain) loss		1.0			0.8			(0.3	)		1.6			1.0			(0.2	)
Net periodic benefit cost	$	0		$	1.8		$	(0.8	)	$	0.6		$	2.3		$	(1.4	)


	Three Months Ended June 30,						Six Months Ended June 30,						Trailing Twelve
	2022			2021			2022			2021			Months
Net income	$	15.1		$	17.9		$	18.2		$	14.8		$	14.4
Interest expense and amortization of deferred financing fees		8.2			7.6			16.0			15.1			31.3
Provision (benefit) for income taxes		(7.1	)		4.0			(0.6	)		8.2			(2.7	)
Depreciation expense		15.6			9.7			31.7			19.7			57.5
Amortization of intangible assets		0.8			0.1			1.6			0.2			2.8
EBITDA		32.6			39.3			66.9			58.0			103.3
Restructuring (income) expense		0.3			—			0.4			(0.1	)		(0.6	)
Asset impairment expense		—			—			—			—			1.9
Other non-recurring charges (1)		1.4			4.2			(2.0	)		4.6			15.2
Other (income) expense - net (2)		2.1			(2.8	)		2.3			(0.7	)		2.0
Adjusted EBITDA		36.4			40.7			67.6			61.8			121.8
Depreciation expense		(15.6	)		(9.7	)		(31.7	)		(19.7	)		(57.5	)
Amortization of intangible assets		(0.8	)		(0.1	)		(1.6	)		(0.2	)		(2.8	)
Adjusted operating income		20.0			30.9			34.3			41.9			61.5
Restructuring (income) expense		(0.3	)		—			(0.4	)		0.1			0.6
Asset impairment expense		—			—			—			—			(1.9	)
Other non-recurring charges (1)		(1.4	)		(4.2	)		2.0			(4.6	)		(15.2	)
Operating income	$	18.3		$	26.7		$	35.9		$	37.4		$	45.0

Adjusted EBITDA margin percentage		7.3	%		8.8	%		7.1	%		7.6	%		6.6	%
Adjusted operating income margin percentage		4.0	%		6.7	%		3.6	%		5.1	%		3.3	%


Exhibit No.	Description	Filed/Furnished Herewith
10.1	Amendment No. 2 to Credit Agreement, dated as of May 19, 2022, among The Manitowoc Company, Inc., the guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-k, filed May 20, 2022).

31	Rule 13a - 14(a)/15d - 14(a) Certifications	X	(1)

32.1	Certification of CEO pursuant to 18 U.S.C. Section 1350	X	(2)

32.2	Certification of CFO pursuant to 18 U.S.C. Section 1350	X	(2)

101.INS 101.SCH 101.CAL 101.DEF 101.LAB 101.PRE	Inline XBRL Instance Document – The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. Inline XBRL Taxonomy Extension Schema Document Inline XBRL Taxonomy Extension Calculation Linkbase Document Inline XBRL Taxonomy Extension Definition Linkbase Document Inline XBRL Taxonomy Extension Labels Linkbase Document Inline XBRL Taxonomy Extension Presentation Linkbase Document	X X X X X X	(1) (1) (1) (1) (1) (1)

104	Cover Page Interactive Data File (embedded within the Inline XBRL document)	X	(1)


Date: August ~~5, 2022~~8, 2023	The Manitowoc Company, Inc.
	(Registrant)


	/s/ Aaron H. Ravenscroft
	Aaron H. Ravenscroft
	President and Chief Executive Officer
	(Principal Executive ~~Officer)~~Officer and Director)

	/s/ Brian P. Regan
	Brian P. Regan
	Executive Vice President and Chief Financial Officer (Principal Financial ~~Officer~~Officer)

	/s/ Ryan M. Palmer
	Ryan M. Palmer
	Vice President, Corporate Controller and Principal Accounting Officer
	(Principal Accounting Officer)