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 ~~September 30, 2020,~~March 31, 2021, the registrant had ~~34,558,608~~34,734,972 shares of common stock, $.01 par value per share, outstanding.

For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~

	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended March 31,
	2020			2019			2020			2019			2021			2020
Net sales	$	355.6		$	448.0		$	1,013.1		$	1,370.7		$	354.3		$	329.2
Cost of sales		290.5			359.6			836.4			1,106.9			285.9			266.0
Gross profit		65.1			88.4			176.7			263.8			68.4			63.2
Operating costs and expenses:
Engineering, selling and administrative expenses		49.5			54.8			155.1			164.7			57.7			55.9
Amortization of intangible assets		—			—			0.2			0.2			0.1			0.1
Restructuring expense		3.9			1.1			5.6			8.3
Restructuring (income) expense														(0.1	)		1.5
Total operating costs and expenses		53.4			55.9			160.9			173.2			57.7			57.5
Operating income		11.7			32.5			15.8			90.6			10.7			5.7
Other income (expense):
Other expense:
Interest expense		(7.3	)		(7.2	)		(21.7	)		(25.6	)		(7.1	)		(7.2	)
Amortization of deferred financing fees		(0.4	)		(0.4	)		(1.1	)		(1.2	)		(0.4	)		(0.4	)
Loss on debt extinguishment		—			—			—			(25.0	)
Other income (expense) - net		2.6			(3.8	)		(4.3	)		8.8
Total other income (expense)		(5.1	)		(11.4	)		(27.1	)		(43.0	)
Other expense - net														(2.1	)		(4.0	)
Total other expense														(9.6	)		(11.6	)
Income (loss) before income taxes		6.6			21.1			(11.3	)		47.6			1.1			(5.9	)
Provision for income taxes		7.0			3.1			9.6			10.3			4.2			1.9
Net income (loss)	$	(0.4	)	$	18.0		$	(20.9	)	$	37.3
Net loss													$	(3.1	)	$	(7.8	)

Per Share Data
Basic income (loss) per common share	$	(0.01	)	$	0.51		$	(0.60	)	$	1.05
Basic net loss per common share													$	(0.09	)	$	(0.22	)

Diluted income (loss) per common share	$	(0.01	)	$	0.51		$	(0.60	)	$	1.05
Diluted net loss per common share													$	(0.09	)	$	(0.22	)

Weighted average shares outstanding - basic		34,538,814			35,348,597			34,730,623			35,527,971			34,809,725			35,135,525
Weighted average shares outstanding - diluted		34,538,814			35,458,956			34,730,623			35,686,831			34,809,725			35,135,525

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

For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~

Three Months Ended
September 30,

Nine Months Ended
September 30,

2020

2019

2020

2019

Net income (loss)

$
(0.4
)

$
18.0

$
(20.9
)

$
37.3

Other comprehensive income (loss), net of income tax

Unrealized gain (loss) on derivatives,
net of income tax

—

(1.3
)

0.1

(0.6
)
Employee pension and postretirement benefit
income (expense), net of income tax

(0.5
)

0.4

1.3

1.4

Foreign currency translation adjustments

15.5

(13.9
)

10.5

(15.2
)
Total other comprehensive income (loss), net of income tax

15.0

(14.8
)

11.9

(14.4
)
Comprehensive income (loss)

$
14.6

$
3.2

$
(9.0
)

$
22.9

	Three Months Ended March 31,
	2021			2020
Net loss	$	(3.1	)	$	(7.8	)
Other comprehensive income (loss), net of income tax:
Employee pension and postretirement benefit income (expense), net of income tax of $0.0 and $0.3, respectively		(0.6	)		1.2
Foreign currency translation adjustments, net of income tax benefit (expense) of $3.2 and $(2.7), respectively		(10.0	)		(13.6	)
Total other comprehensive loss, net of income tax		(10.6	)		(12.4	)
Comprehensive loss	$	(13.7	)	$	(20.2	)

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

	September 30, 2020			December 31, 2019			March 31, 2021			December 31, 2020
Assets
Current Assets:
Cash and cash equivalents	$	101.1		$	199.3		$	158.5		$	128.7
Accounts receivable, less allowances of $8.4 and $7.9, respectively		184.1			168.3
Accounts receivable, less allowances of $8.2 and $8.5, respectively								188.4			215.1
Inventories — net		526.7			461.4			520.4			473.1
Notes receivable — net		14.3			17.4			12.8			13.6
Other current assets		32.3			26.0			30.6			35.5
Total current assets		858.5			872.4			910.7			866.0

Property, plant and equipment — net		281.3			289.9			286.3			294.3
Operating lease right-of-use assets		41.7			47.6			35.2			37.9
Goodwill		233.2			232.5			234.8			235.1
Other intangible assets — net		118.8			116.3			118.7			121.6
Other non-current assets		57.4			59.0			42.1			48.6
Total assets	$	1,590.9		$	1,617.7		$	1,627.8		$	1,603.5
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable and accrued expenses	$	342.2		$	340.8		$	378.7		$	329.4
Short-term borrowings and current portion of long-term debt		3.7			3.8			10.1			10.5
Product warranties		46.1			47.2			47.4			50.2
Customer advances		23.1			25.8			21.6			25.5
Other liabilities		22.8			23.3			20.6			20.2
Total current liabilities		437.9			440.9			478.4			435.8
Non-Current Liabilities:
Long-term debt		306.8			308.4			300.1			300.4
Operating lease liabilities		32.4			37.6			26.1			28.4
Deferred income taxes		7.5			5.5			2.4			5.9
Pension obligations		84.8			86.4			88.0			89.3
Postretirement health and other benefit obligations		15.4			16.4			13.4			14.0
Long-term deferred revenue		28.8			30.3			32.6			32.4
Other non-current liabilities		47.6			46.3			53.8			53.8
Total non-current liabilities		523.3			530.9			516.4			524.2
Commitments and contingencies (Note 18)
Stockholders' Equity:
Preferred stock (authorized 3,500,000 shares of $.01 par value; NaN outstanding)		—			—
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 34,558,608 and 35,374,537 shares outstanding, respectively)		0.4			0.4
Preferred stock (3,500,000 shares authorized of $.01 par value; NaN outstanding)								—			—
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 34,734,972 and 34,580,638 shares outstanding, respectively)								0.4			0.4
Additional paid-in capital		594.9			592.2			596.4			595.1
Accumulated other comprehensive loss		(109.1	)		(121.0	)		(108.1	)		(97.5	)
Retained earnings		215.1			236.2			213.8			216.9
Treasury stock, at cost (6,235,375 and 5,419,446 shares, respectively)		(71.6	)		(61.9	)
Treasury stock, at cost (6,059,011 and 6,213,345 shares, respectively)								(69.5	)		(71.4	)
Total stockholders' equity		629.7			645.9			633.0			643.5
Total liabilities and stockholders' equity	$	1,590.9		$	1,617.7		$	1,627.8		$	1,603.5

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

For the ~~nine~~three months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~

	Nine Months Ended September 30,						Three Months Ended March 31,
	2020			2019			2021			2020
Cash Flows from Operating Activities:
Net income (loss)	$	(20.9	)	$	37.3
Adjustments to reconcile net income (loss) to cash used for operating activities:
Net loss							$	(3.1	)	$	(7.8	)
Adjustments to reconcile net loss to cash provided by (used for) operating activities:
Depreciation		27.3			26.3			10.0			9.0
Amortization of intangible assets		0.2			0.2			0.1			0.1
Amortization of deferred financing fees		1.1			1.2			0.4			0.4
Loss on debt extinguishment		—			25.0
Deferred income taxes								0.9			0.0
Gain on sale of property, plant and equipment		—			(3.5	)		(0.1	)		(0.1	)
Other		5.5			8.7
Changes in operating assets and liabilities:
Net unrealized foreign currency transaction losses								0.3			3.0
Stock-based compensation expense								2.5			3.4
Changes in operating assets and liabilities
Accounts receivable		(13.9	)		(184.2	)		23.4			(5.6	)
Inventories		(55.3	)		(87.4	)		(59.5	)		(88.5	)
Notes receivable		6.2			(0.5	)		2.3			2.6
Other assets		(7.1	)		14.8			5.4			(4.7	)
Accounts payable		(5.2	)		(37.4	)		53.4			28.1
Accrued expenses and other liabilities		(8.8	)		1.6			4.8			(18.5	)
Net cash used for operating activities		(70.9	)		(197.9	)

Net cash provided by (used for) operating activities								40.8			(78.6	)
Cash Flows from Investing Activities:
Capital expenditures		(15.3	)		(22.4	)		(8.0	)		(3.6	)
Proceeds from sale of property, plant and equipment		0.2			17.2
Cash receipts on sold accounts receivable		—			126.3
Net cash provided by (used for) investing activities		(15.1	)		121.1

Proceeds from sale of fixed assets								—			0.1
Net cash used for investing activities								(8.0	)		(3.5	)
Cash Flows from Financing Activities:
Proceeds from revolving credit facility		50.0			131.4
Payments on revolving credit facility		(50.0	)		(131.4	)
Payments on long-term debt		—			(276.6	)
Proceeds from long-term debt		—			300.0
Other debt - net		(2.7	)		(2.8	)		(0.8	)		(0.5	)
Debt issuance costs		—			(8.3	)
Exercises of stock options		0.1			0.2			0.8			0.1
Common stock repurchases		(12.0	)		(7.4	)		—			(12.0	)
Net cash provided by (used for) financing activities		(14.6	)		5.1

Net cash used for financing activities								—			(12.4	)
Effect of exchange rate changes on cash and cash equivalents		2.4			(1.1	)		(3.0	)		(1.2	)

Net decrease in cash and cash equivalents		(98.2	)		(72.8	)
Net increase (decrease) in cash and cash equivalents								29.8			(95.7	)
Cash and cash equivalents at beginning of period		199.3			140.3			128.7			199.3
Cash and cash equivalents at end of period	$	101.1		$	67.5		$	158.5		$	103.6

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

For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019			March 31, 2021			March 31, 2020
Common Stock - Par Value
Balance at beginning of period	$	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
Additional Paid-in Capital
Balance at beginning of period	$	596.0		$	588.8		$	592.2		$	584.8		$	595.1		$	592.2
Stock options exercised and issuance of other stock awards		(0.6	)		—			(2.7	)		(2.1	)		(1.2	)		(1.9	)
Stock-based compensation		(0.5	)		2.2			5.4			8.3			2.5			3.4
Balance at end of period	$	594.9		$	591.0		$	594.9		$	591.0		$	596.4		$	593.7
Accumulated Other Comprehensive Loss
Balance at beginning of period	$	(124.1	)	$	(116.2	)	$	(121.0	)	$	(116.6	)	$	(97.5	)	$	(121.0	)
Other comprehensive income (loss)		15.0			(14.8	)		11.9			(14.4	)		(10.6	)		(12.4	)
Balance at end of period	$	(109.1	)	$	(131.0	)	$	(109.1	)	$	(131.0	)	$	(108.1	)	$	(133.4	)
Retained Earnings
Balance at beginning of period	$	215.5		$	208.9		$	236.2		$	189.6		$	216.9		$	236.2
Adoption of accounting standards update		—			—			(0.2	)		—			—			(0.2	)
Net income (loss)		(0.4	)		18.0			(20.9	)		37.3
Net loss														(3.1	)		(7.8	)
Balance at end of period	$	215.1		$	226.9		$	215.1		$	226.9		$	213.8		$	228.2
Treasury Stock
Balance at beginning of period	$	(72.1	)	$	(62.2	)	$	(61.9	)	$	(56.9	)	$	(71.4	)	$	(61.9	)
Stock options exercised and issuance of other stock awards		0.5			—			2.3			2.1			1.9			1.7
Common stock repurchases		—			—			(12.0	)		(7.4	)		—			(12.0	)
Balance at end of period	$	(71.6	)	$	(62.2	)	$	(71.6	)	$	(62.2	)	$	(69.5	)	$	(72.2	)
Total equity	$	629.7		$	625.1		$	629.7		$	625.1		$	633.0		$	616.7

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

For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~

The Manitowoc Company, Inc. (“~~Manitowoc,” “MTW” or~~Manitowoc” and the “Company”) was founded in 1902 and has over a ~~117-year~~118-year tradition of providing high-quality, customer-focused products and support services to its markets. Manitowoc is one of the world’s leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, and supports comprehensive product lines of mobile ~~telescopic~~hydraulic cranes, tower cranes, lattice-boom crawler cranes, and boom trucks under the Grove, Manitowoc, National Crane, Potain ~~Shuttlelift~~ and ~~Manitowoc Crane Care~~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’s Manitowoc Crane Care offering~~Company leverages ~~Manitowoc's~~its installed base of approximately ~~149,000~~152,000 cranes to provide aftermarket parts and services to enable its customers to manage their fleets more effectively and improve their return on investment. Due to the ongoing and predictable maintenance needed by cranes, as well as the high cost of crane downtime, ~~Manitowoc Crane Care~~Manitowoc’s aftermarket support operations provides the Company with a consistent stream of recurring revenue. The Company continues to expand its tower crane rental fleet in Europe to directly service its customers in the region.

The Company has 3 reportable segments, the Americas segment, Europe and Africa (“EURAF”) segment and Middle East and Asia Pacific (“MEAP”) segment. The segments were identified using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance. Refer to Note 17, “Segments” for additional information.

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments necessary for a fair statement of ~~the results of~~ operations, comprehensive income (loss) and equity for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ the cash flows for the same ~~nine-month~~three-month periods and the ~~financial position at September 30, 2020~~balance sheet as of March 31, 2021 and December 31, ~~2019,~~2020, and except as otherwise discussed, such adjustments consist of only those of a normal recurring nature. The interim results are not necessarily indicative of results for a full year and do not contain information included in the Company’s annual consolidated financial statements and notes for the year ended December 31, ~~2019.~~ 2020. 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.

Certain prior period amounts have been reclassified to conform to the current period presentation. All amounts, except share and per share amounts, are in millions throughout the tables in these notes unless otherwise indicated.

There is ~~considerable~~still uncertainty regarding the future impact ~~and expected duration~~ of the COVID-19 pandemic, which could include continuing or new restrictions on the Company’s access to its facilities or on its support operations or workforce, or similar limitations impacting its customers, dealers and suppliers. ~~This uncertainty could have an impact in future periods on certain estimates used in~~The extent to which the ~~preparation of~~COVID-19 pandemic impacts the Company’s ~~third quarter~~business, financial condition, results ~~including, but not limited to, impairment~~ of ~~goodwill and other long-lived assets, income tax provision, recoverability of inventory and hedge accounting with respect to forecasted future transactions.~~ operations, cash flows and/or liquidity may differ from management’s current estimates due this inherent uncertainty.

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12 ~~“Income~~��Income Taxes ~~(“Topic 740”) (“ASU 2019-12”)~~(Topic 740).” The amendments in this ASU ~~2019-12 simplifies~~simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance, including the recognition of deferred taxes for goodwill, the allocation of taxes to members of a consolidated group and requiring that an entity reflect the effect of enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date.guidance. The standard is effective for annual periods beginning after December 15, 2020. The adoption of ASU ~~2019-12 will not have a material impact on the Company’s condensed consolidated financial statements.~~

In August 2018, the FASB issued ASU No. 2018-15 “Intangibles – Goodwill and Other – Internal-use Software (Subtopic 250-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (“ASU 2018-15”).” The amendments in ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard was effective for annual periods beginning after December 15, 2019. The adoption of ASU 2018-152019-02 did not have a material impact on the Company’s ~~condensed~~ consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (“ASU 2016-13”),” which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. The new guidance is applicable to financial assets measured at amortized cost, net investments in leases and certain off-balance sheet credit exposures. The standard was effective for annual periods beginning after December 15, 2019. The adoption of ASU 2016-13 resulted in a $0.2 million reduction in beginning retained earnings and a corresponding reduction in accounts receivable on the Company’s Condensed Consolidated Balance Sheets as of September 30, 2020. There was no material impact to the Company’s Condensed Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows.

The Company records deferred revenue when cash payments are received in advance of satisfying the performance obligation. The table below shows the change in the customer advances balance for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ which are included in current liabilities in the Condensed Consolidated Balance Sheets.

	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended March 31,
	2020			2019			2020			2019			2021			2020
Balance at beginning of period	$	15.8		$	10.6		$	25.8		$	9.6		$	25.5		$	25.8
Cash received in advance of satisfying performance obligation		26.9			25.4			71.7			75.6
Cash received in advance of satisfying performance obligations														30.5			28.9
Revenue recognized		(19.8	)		(26.1	)		(73.9	)		(75.5	)		(34.1	)		(32.5	)
Currency translation		0.2			(0.2	)		(0.5	)		—			(0.3	)		(1.2	)
Balance at end of period	$	23.1		$	9.7		$	23.1		$	9.7		$	21.6		$	21.0

Disaggregation of the Company’s revenue sources are disclosed in Note 17, “Segments.”

The ~~following table sets forth the Company’s~~ Company has immaterialfinancial assets and liabilities related to foreign currency exchange contracts (“FX Forward Contracts”) that were accounted for at fair value as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.~~2020.

The fair value of the senior secured second lien notes due on April 1, 2026, with an annual coupon rate of 9.000% (the “2026 Notes”), was approximately ~~$310.5~~$324.8 million as of ~~September 30, 2020.~~March 31, 2021. 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;~~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 our revolving credit facility, approximate fair value, without being discounted as of ~~September 30, 2020 and December~~March 31, ~~2019,~~2021 due to the short-term nature of these instruments.

~~Forward currency exchange contracts (“~~FX Forward ~~Contracts”)~~ 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.

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 ~~loss.~~income (loss). These changes in fair value are reclassified into earnings as a component of cost of sales, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of other income ~~(expense)~~expense – net in the period in which the transaction is no longer considered probable of occurring. No material amounts were recorded related to these types of transactions during the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ respectively.

The Company had FX Forward Contracts with an aggregate notional ~~amount~~amounts of ~~$2.2~~$6.0 million and ~~$32.6~~$9.3 million ~~outstanding~~in U.S. dollar equivalent as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, respectively. ~~The aggregate notional amount outstanding as of September 30, 2020 is scheduled to mature within one year.~~ The FX Forward Contracts purchased are denominated in various foreign currencies. AsThe Company has immaterial financial assets and liabilities related to FX Forward Contracts that were accounted for at fair value as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019, the net fair value of these contracts was a net current asset of $0.1 million and a net 0 balance, respectively.~~2020. There ~~was $0.1 million and~~were 0 unrealized gains (losses), net of income tax, recorded in accumulated other comprehensive loss as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019, respectively.~~2020.

The following table provides the net amount of ~~gain or loss~~gains (losses) recorded in the Condensed Consolidated Statement of Operations for FX Forward Contracts for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 and ~~September 30, 2019.~~2020.

		Three Months Ended September 30,					Nine Months Ended September 30,							Three Months Ended March 31,
	Recognized Location	2020			2019		2020			2019			Recognized Location	2021			2020
Designated	Cost of sales	$	—		$	0.9	$	0.3		$	2.4		Cost of sales	$	—		$	0.1
Non-Designated	Other income (expense) - net	$	(0.1	)	$	0.3	$	(0.5	)	$	(1.9	)	Other expense - net	$	(0.2	)	$	—

The components of inventories as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 are summarized as follows:

	September 30, 2020			December 31, 2019			March 31, 2021			December 31, 2020
Raw materials	$	134.6		$	156.3		$	132.4		$	114.9
Work-in-process		123.8			116.3			137.9			105.5
Finished goods		321.6			239.4			303.0			305.8
Total inventories		580.0			512.0			573.3			526.2
Excess and obsolete inventory reserve		(53.3	)		(50.6	)		(52.9	)		(53.1	)
Inventories — net	$	526.7		$	461.4		$	520.4		$	473.1

The Company has notes receivable balances that are classified as current or long-term based on the timing of amounts due. Long-term notes receivable are included within other non-current assets on the Condensed Consolidated Balance Sheets. Current and long-term notes receivable balances primarily relate to the Company’s captive finance entity in China. As of ~~September 30,~~March 31, 2021, the Company had current and long-term notes receivable in the amount of $12.8 million and $11.3 million, respectively. As of December 31, 2020, the Company had current and long-term notes receivable in the amount of ~~$14.3~~$13.6 million and ~~$13.1~~$12.7 million, respectively. ~~As of December 31, 2019, the Company had current and long-term notes receivable in the amount of $17.4 million and $16.3 million, respectively.~~

The components of property, plant and equipment as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 are summarized as follows:

	September 30, 2020			December 31, 2019			March 31, 2021			December 31, 2020
Land	$	23.9		$	24.0		$	19.8		$	20.3
Building and improvements		201.1			197.3			199.2			203.7
Machinery, equipment and tooling		282.3			274.2			287.7			292.6
Furniture and fixtures		19.5			18.5			14.7			21.0
Computer hardware and software		118.2			119.3			125.2			119.3
Rental cranes		79.9			77.7			92.6			90.2
Construction in progress		11.2			11.2			8.5			9.0
Total cost		736.1			722.2			747.7			756.1
Less accumulated depreciation		(454.8	)		(432.3	)		(461.4	)		(461.8	)
Property, plant and equipment — net	$	281.3		$	289.9
Property, plant and equipment-net							$	286.3		$	294.3

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

As of December 31, 2020, the Company had $3.3 million classified as other current assets in the Condensed Consolidated Balance Sheets related to assets held for sale for a building and land in Fanzeres, Portugal.

The Company performs anits annual ~~impairment review of~~ goodwill and ~~indefinite-lived intangible~~indefinite lived assets impairment testing during the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. ~~During~~There have been 0 impairment indicators since the fourth quarter of 2020; therefore, 0 impairment review has occurred during the three months ~~ended~~ March 31, 2020, the Company considered the decline in its market capitalization due to the COVID-19 pandemic as an interim triggering event. The Company’s interim test results as of March 31, 2020 indicated that the fair values of all reporting units exceeded their carrying values and thus, no impairment of goodwill existed. No additional triggers for an interim impairment test have been identified since March 31, 2020. However, the Company is unable to predict future impacts of the COVID-19 pandemic, including a prolonged and/or more severe pandemic than anticipated, or future changes in management’s judgements and assumptions used to assess the fair value of the reporting units, which could result in a non-cash impairment charge in the future.2021.

The changes in the carrying amount of goodwill as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 are summarized as follows:

Americas

MEAP

Consolidated

Balance as of January 1, 2019

$
166.5

$
66.3

$
232.8

Foreign currency impact

—

(0.3
)

(0.3
)
Balance as of December 31, 2019

166.5

66.0

232.5

Foreign currency impact

—

0.7

0.7

Balance as of September 30, 2020

$
166.5

$
66.7

$
233.2

	Americas		MEAP			Consolidated
Balance as of January 1, 2020	$	166.5	$	66.0		$	232.5
Foreign currency impact		—		2.6			2.6
Balance as of December 31, 2020		166.5		68.6			235.1
Foreign currency impact		—		(0.3	)		(0.3	)
Balance as of March 31, 2021	$	166.5	$	68.3		$	234.8

The gross carrying amount, accumulated amortization and net book value of the Company’s intangible assets other than goodwill as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 are summarized as follows:

	September 30, 2020							December 31, 2019							March 31, 2021							December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			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	$	9.8	$	(8.5	)	$	1.3	$	10.0	$	(8.5	)	$	1.5		9.8		(8.6	)		1.2		9.9		(8.6	)		1.3
Patents		30.2		(29.4	)		0.8		29.5		(28.7	)		0.8		30.3		(29.6	)		0.7		31.0		(30.3	)		0.7
Total		40.0		(37.9	)		2.1		39.5		(37.2	)		2.3	$	40.1	$	(38.2	)	$	1.9	$	40.9	$	(38.9	)	$	2.0
Indefinite lived intangible assets:
Trademarks and tradenames		97.6		—			97.6		95.3		—			95.3		97.6		—			97.6		100.0		—			100.0
Distribution network		19.1		—			19.1		18.7		—			18.7		19.2		—			19.2		19.6		—			19.6
Total		116.7		—			116.7		114.0		—			114.0		116.8		—			116.8		119.6		—			119.6
Total other intangible assets	$	156.7	$	(37.9	)	$	118.8	$	153.5	$	(37.2	)	$	116.3	$	156.9	$	(38.2	)	$	118.7	$	160.5	$	(38.9	)	$	121.6

Other intangible assets with definite lives are amortized over their estimated useful lives. Amortization expense for the three months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ was ~~0. Amortization expense for the nine months ended September 30, 2020 and 2019 was $0.2~~$0.1 million.

Definite lived intangible assets and long-lived assets are subject to impairment testing whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. ~~The Company considered the impact of the COVID-19 pandemic on each of the Company’s definite lived intangible assets and long-lived assets.~~ The Company determined there was not a triggering event ~~during~~for the ~~third quarter of 2020.~~three months ended March 31, 2021.

Accounts payable and accrued expenses as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 are summarized as follows:

	September 30, 2020		December 31, 2019		March 31, 2021		December 31, 2020
Trade accounts payable	$	181.8	$	187.1	$	224.1	$	178.1
Employee-related expenses		36.2		56.6		41.5		38.5
Accrued vacation		23.8		20.2		24.2		22.4
Miscellaneous accrued expenses		100.4		76.9		88.9		90.4
Total accounts payable and accrued expenses	$	342.2	$	340.8	$	378.7	$	329.4

Outstanding debt as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019 is~~2020 are summarized as follows:

	September 30, 2020			December 31, 2019			March 31, 2021			December 31, 2020
Borrowings under senior secured asset based revolving credit facility	$	—		$	—		$	—		$	—
Senior secured second lien notes due 2026		300.0			300.0			300.0			300.0
Other		14.5			16.7			13.8			14.7
Deferred financing costs		(4.0	)		(4.5	)		(3.6	)		(3.8	)
Total debt		310.5			312.2			310.2			310.9
Short-term borrowings and current portion of long-term debt		(3.7	)		(3.8	)		(10.1	)		(10.5	)
Long-term debt	$	306.8		$	308.4		$	300.1		$	300.4

On March 25, 2019, the Company and certain of its subsidiaries entered into an indenture with U.S. Bank National Association as trustee and notes collateral agent, pursuant to which the Company issued $300.0 million aggregate principal amount ~~senior secured second lien notes due on April 1,~~of the 2026 Notes with an annual coupon rate of 9.000%. Interest on the 2026 Notes is payable in cash semi-annually in arrears on April 1 and October 1 of each year. The 2026 Notes are fully and unconditionally guaranteed on a senior secured second lien basis, jointly and severally, by each of the Company’s existing and future domestic subsidiaries

that is either a guarantor or a borrower under the ABL Revolving Credit Facility (as defined below) or that guarantees certain other debt of the Company or a guarantor. The 2026 Notes and the related guarantees are secured on a second-priority basis, subject to certain exceptions and permitted liens, by pledges of capital stock and other equity interests and other security interests in substantially all of the personal property and fee-owned real property of the Company and of the guarantors that secure obligations under the ABL Revolving Credit Facility. ~~The 2026 Notes were sold pursuant to exemptions from registration under the Securities Act of 1933.~~

Additionally, on March 25, 2019,the Company and certain subsidiaries of the Company (the “Loan Parties”) entered into a credit agreement (the “ABL Credit Agreement”) with JP Morgan Chase Bank, N.A as administrative and collateral agent and certain financial institutions party thereto as lenders, providing for a senior secured asset-based revolving credit facility (the “ABL Revolving Credit Facility”) of up to $275.0 million. The borrowing capacity under the ABL Revolving Credit Facility is based on the value of inventory, accounts receivable and fixed assets of the Loan Parties. The Loan Parties’ obligations under the ABL Revolving Credit Facility are secured on a first-priority 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 term of 5five 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~~.Facility.

Borrowings under the ABL Revolving Credit Facility bear interest at a variable rate using either the Alternative Base Rate or the Eurodollar and Overnight London Interbank Offered Rate (“LIBOR”). The variable interest rate is based upon the average availability as of the most recent determination date as follows:

The Company used the initial extension of credit under the ABL Revolving Credit Facility, together with the net proceeds from the offering of the 2026 Notes, to (i) redeem all of the Company’s $260.0 million in outstanding 12.750% Senior Secured Second Lien Notes due 2021 (the “Prior 2021 Notes”); (ii) repay all obligations outstanding, and terminate all commitments, under (x) the Company’s previous $225.0 million ABL Revolving Credit Facility (“Prior ABL Facility”) and (y) $75.0 million AR Securitization Facility; and (iii) pay related fees and expenses, including $16.6 million of call premium on the Prior 2021 Notes, $5.0 million of closing costs and $4.6 million of accrued interest.

During the nine months ended September 30, 2019, the Company recorded a $25.0 million charge in the Condensed Consolidated Statement of Operations associated with the Company’s refinancing of the ABL Revolving Credit Facility and 2026 Notes. The charge was composed of $16.6 million of call premium on the Prior 2021 Notes, $5.3 million of unamortized discount on the Prior 2021 Notes and $3.1 million of unamortized debt issuance costs.

As of ~~September 30, 2020,~~March 31, 2021, the Company had other indebtedness outstanding of ~~$14.5~~$13.8 million that had a weighted-average interest rate of approximately ~~3.96%~~4.0%. This debt includes balances on local credit lines and other financing arrangements.

As of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020, the Company had 0 borrowings on the ABL Revolving Credit Facility. During the quarter ended September 30, 2020, the highest daily borrowing under the ABL Revolving Credit Facility was $50.0 million and the average amount borrowed was $25.5 million, while the average annual interest rate was 1.71%. The interest rate spread of the ABL Revolving Credit Facility fluctuates based on excess availability. As of ~~September 30, 2020,~~March 31, 2021, the spreads for LIBOR and prime rate borrowings were 1.25% and 0.25%, respectively, with excess availability of approximately ~~$258.2~~$240.2 million, which represents revolver borrowing capacity of ~~$261.2~~$243.2 million less U.S. letters of credit outstanding of $3.0 million.

Both the ABL Revolving Credit Facility and the 2026 Notes include customary covenants which include, without limitation, restrictions on, the Company’s ability and the ability of the Company’s restricted subsidiaries to incur, assume or guarantee additional debt or issue certain preferred shares, pay dividends on or make other distributions in respect of the Company’s capital stock or make other restricted payments, make certain investments, sell or transfer certain assets, create liens on certain

assets to secure debt, consolidate, merge, sell, or otherwise dispose of all or substantially all of the Company’s assets, enter into certain transactions with affiliates and designate the Company’s subsidiaries as unrestricted. Both the ABL Revolving Credit Facility and the 2026 Notes also include customary events of default. The ABL Revolving Credit Facility has customary representations and warranties including, as a condition to borrowing, that all such representations and warranties are true and correct, in all material respects, on the date of the borrowing, including representations as to no material adverse change in the Company’s business or financial condition since December 31, 2018.

Additionally, the ABL Revolving Credit Facility contains a covenant requiring the Company to maintain a minimum fixed charge coverage ratio under certain circumstances set forth in the ABL Credit Agreement.

As of ~~September 30, 2020,~~March 31, 2021, the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the ABL Revolving Credit Facility and 2026 Notes. Based upon management’s current plans and outlook, the Company believes it will be able to comply with these covenants during the subsequent twelve months.

The Company had maintained a Receivables Purchase Agreement (“RPA”) among Manitowoc Funding, LLC (“MTW Funding”), as Seller, The Manitowoc Company, Inc., as Servicer, and Wells Fargo Bank, N.A., as Purchaser and as Agent, with a commitment size of $75.0 million. Under the RPA (and the related Purchase and Sale Agreements referenced in the RPA), the Company’s domestic trade accounts receivable were sold to MTW Funding which, in turn, sold, conveyed, transferred and assigned to a third-party financial institution (“Purchaser”), all of MTW Funding’s rights, title and interest in a pool of receivables to the Purchaser. Transactions under the program were accounted for as sales in accordance with Accounting Standards Codification Topic 860, “Transfers and Servicing,” (“Topic 860”). This program was terminated on March 25, 2019.

Trade accounts receivable sold to the Purchaser and being serviced by the Company totaled 0 and $149.0 million for the three and nine months ended September 30, 2019, respectively. Cash proceeds received from customers related to the receivables previously sold for the three and nine months ended September 30, 2019 were 0 and $182.8 million, respectively.

Proceeds received from the sale of trade receivables under the program were included in cash flows from operating activities; whereas cash collections related to the deferred purchase price were classified as cash flows from investing activities in the accompanying Condensed Consolidated Statements of Cash Flows.

The Company has two non-U.S. accounts receivable financing programs with maximum availability of €55.0 ~~million.~~ million. Under these financing programs, the Company has the ability to sell eligible receivables up to the maximum limit and can sell additional receivables as ~~previously sold receivables~~amounts are collected. ~~During the nine months ended September 30, 2020, the Company sold receivables and received cash of €103.5 million.~~ The Company also has one U.S. accounts receivable financing program with maximum availability of $35.0 million. During the three months ended March 31, 2021, the Company sold $53.4 million of receivables and received $53.4 million of cash on the various receivable financing programs. Transactions under the U.S. and non-U.S. programs were accounted for as sales in accordance with Accounting Standards Codification (“ASC”) Topic ~~860.~~860, “Transfers and Servicing.”

For the three months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ the Company recorded a provision for income taxes of ~~$7.0~~$4.2 million and ~~$3.1~~$1.9 million, respectively. ~~For the nine months ended September 30, 2020 and 2019, the Company recorded a provision for income taxes of $9.6 million and $10.3 million, respectively.~~ The ~~year-over-year~~ increase in the Company’s provision for income taxes for the three months ended ~~September 30, 2020 primarily relates to additional tax expense in foreign jurisdictions. The decrease in the Company’s tax expense for the nine months ended September 30, 2020 relative~~March 31, 2021 compared to the prior year primarily relates ~~primarily~~to higher pretax income and a change in the jurisdictional mix of income compared to the ~~year-to-date discrete tax benefit recorded. This was partially offset by additional tax expense in foreign jurisdictions.~~

The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act allowed the Company to implement certain U.S. tax planning strategies which resulted in the Company filing an amended 2018 tax return during the quarter ended June 30, 2020 and recognized a net tax benefit of $3.7 million for the nine months ended September 30, 2020.previous year.

The Company will continue to evaluate its valuation allowance requirements on an ongoing basis ~~considering~~ in light of changing facts and circumstances and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in the Company’s provision for income ~~tax provision~~taxes and could have a material effect on financial ~~results.~~results.

The Company’s unrecognized tax benefits, excluding interest and penalties, were ~~$22.7 million and $11.5~~$20.2 million as of ~~September 30, 2020~~March 31, 2021 and $20.1 million as of December 31, 2019, respectively. The increase primarily relates to $10.9 million from the uncertainty of a portion of the U.S. federal tax planning strategies implemented as a result of the CARES Act recorded year-to-date. It is reasonably possible that the Company will reverse a portion of its unrecognized tax benefits in the future. Such changes will be reflected in the Company’s income tax provision and could have a material effect on financial results.2020.

The following is a reconciliation of the average shares outstanding used to compute basic and diluted ~~income (loss)~~loss per common share:

	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
	2020		2019		2020		2019		2021		2020
Basic weighted average common shares outstanding		34,538,814		35,348,597		34,730,623		35,527,971		34,809,725		35,135,525
Effect of dilutive securities		0		110,359		0		158,860
Effect of dilutive securities - stock awards										—		—
Diluted weighted average common shares outstanding		34,538,814		35,458,956		34,730,623		35,686,831		34,809,725		35,135,525

Equity incentive instruments for which total employee proceeds from exercise exceed the average fair value of the same equity incentive instrument over the period have an anti-dilutive effect on earnings per share during periods with net income, and accordingly, are excluded from diluted weighted average common shares outstanding. Due to the net loss incurred during the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020, the assumed exercise of all equity instruments was anti-dilutive and, therefore, not included in the diluted weighted average common shares outstanding for those periods. Anti-dilutive equity instruments of 1,528,910 and 1,544,379 common shares were excluded from diluted weighted average common shares outstanding for the three and nine months ended September 30, 2019, respectively.

NaN cash dividends were declared or paid during the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 and ~~2019.~~2020.

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 of the preferred shares have been issued.

As of ~~September 30, 2020,~~March 31, 2021, the Company has authorization from the Board of Directors to purchase up to $30.0 million of the Company’s common stock at management’s discretion. ~~During the nine months ended September 30, 2020, the Company repurchased 1,061,711 of the Company’s common shares for $12.0 million under this authorization.~~ As a result of the COVID-19 pandemic, the Company suspended its share repurchase program in the first quarter of 2020 to preserve its liquidity and manage cash flows. As of ~~September 30, 2020,~~March 31, 2021, the Company ~~has~~had $10.6 million remaining under this authorization.

A reconciliation of the changes in accumulated other comprehensive loss, net of income tax, by component for the three months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ are summarized as follows:

Gains and Losses on
Cash Flow Hedges

Pension &
Postretirement

Foreign Currency
Translation

Total

Balance as of June 30, 2019

$
0.4

$
(35.2
)

$
(81.4
)

$
(116.2
)
Other comprehensive loss before
   reclassifications

(2.2
)

—

(13.9
)

(16.1
)
Amounts reclassified from accumulated other
   comprehensive loss

0.9

0.4

—

1.3

Net other comprehensive income (loss)

(1.3
)

0.4

(13.9
)

(14.8
)
Balance as of September 30, 2019

$
(0.9
)

$
(34.8
)

$
(95.3
)

$
(131.0
)

Balance as of June 30, 2020

$
0.1

$
(38.1
)

$
(86.1
)

$
(124.1
)
Other comprehensive income (loss) before
   reclassifications

—

(1.1
)

15.5

14.4

Amounts reclassified from accumulated other
   comprehensive loss

—

0.6

—

0.6

Net other comprehensive income (loss)

—

(0.5
)

15.5

15.0

Balance as of September 30, 2020

$
0.1

$
(38.6
)

$
(70.6
)

$
(109.1
)

~~A reconciliation of the changes in accumulated other comprehensive loss, net of income tax, by component for the nine months ended September 30, 2020 and 2019 are summarized as follows:~~

	Gains and Losses on Cash Flow Hedges			Pension & Postretirement			Foreign Currency Translation			Total
Balance as of December 31, 2018	$	(0.3	)	$	(36.2	)	$	(80.1	)	$	(116.6	)
Other comprehensive income (loss) before reclassifications		(3.0	)		0.2			(15.2	)		(18.0	)
Amounts reclassified from accumulated other comprehensive loss		2.4			1.2			—			3.6
Net other comprehensive income (loss)		(0.6	)		1.4			(15.2	)		(14.4	)
Balance as of September 30, 2019	$	(0.9	)	$	(34.8	)	$	(95.3	)	$	(131.0	)
													Gains and Losses on Cash Flow Hedges			Pension & Postretirement			Foreign Currency Translation			Total
Balance as of December 31, 2019		—			(39.9	)		(81.1	)		(121.0	)	$	—		$	(39.9	)	$	(81.1	)	$	(121.0	)
Other comprehensive income (loss) before reclassifications		(0.2	)		(0.1	)		10.5			10.2			(0.1	)		1.1			(13.6	)		(12.6	)
Amounts reclassified from accumulated other comprehensive loss		0.3			1.4			—			1.7			0.1			0.1			—			0.2
Net other comprehensive income		0.1			1.3			10.5			11.9
Balance as of September 30, 2020	$	0.1		$	(38.6	)	$	(70.6	)	$	(109.1	)
Net other comprehensive income (loss)														—			1.2			(13.6	)		(12.4	)
Balance as of March 31, 2020													$	—		$	(38.7	)	$	(94.7	)	$	(133.4	)

Balance as of December 31, 2020													$	—		$	(47.9	)	$	(49.6	)	$	(97.5	)
Other comprehensive loss before reclassifications														—			(1.2	)		(10.0	)		(11.2	)
Amounts reclassified from accumulated other comprehensive loss														—			0.6			—			0.6
Net other comprehensive loss														—			(0.6	)		(10.0	)		(10.6	)
Balance as of March 31, 2021													$	—		$	(48.5	)	$	(59.6	)	$	(108.1	)

A reconciliation of the reclassifications from accumulated other comprehensive loss, net of income tax, for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ are summarized as follows:

	Amount Reclassified from Accumulated Other Comprehensive Loss														Amount Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended September 30,						Nine Months Ended September 30,								Three Months Ended March 31, 2021			Three Months Ended March 31, 2020				Recognized Location
	2020			2019			2020			2019				Recognized Location
Losses on cash flow hedges
Gains and losses on cash flow hedges
FX Forward Contracts	$	—		$	(0.9	)	$	(0.3	)	$	(2.4	)		Cost of sales	$	—		$	(0.1	)		Cost of sales
Total before income taxes		—			(0.9	)		(0.3	)		(2.4	)				—			(0.1	)
Income tax provision		—			—			—			—					—			—
Total, net of income taxes	$	—		$	(0.9	)	$	(0.3	)	$	(2.4	)			$	—		$	(0.1	)
Amortization of pension and postretirement items
Actuarial losses	$	(1.2	)	$	(1.1	)	$	(3.4	)	$	(3.3	)	(a)	Other income (expense) - net	$	(1.3	)	$	(1.1	)	(a)	Other expense - net
Amortization of prior service cost		0.6			0.7			2.0			2.1		(a)	Other income (expense) - net		0.7			0.7		(a)	Other expense - net
Total before income taxes		(0.6	)		(0.4	)		(1.4	)		(1.2	)				(0.6	)		(0.4	)
Income tax provision		—			—			—			—
'Provision for income taxes																—			0.3
Total, net of income taxes	$	(0.6	)	$	(0.4	)	$	(1.4	)	$	(1.2	)			$	(0.6	)	$	(0.1	)

Total reclassifications for the period, net of income taxes	$	(0.6	)	$	(1.3	)	$	(1.7	)	$	(3.6	)			$	(0.6	)	$	(0.2	)

Equity compensation awards may be granted to certain eligible employees or non-employee directors. A detailed description of the awards granted prior to ~~2020~~2021 is included in the Company’s ~~2019~~2020 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 ~~(“2013 Plan”)~~ is 7,477,395 shares. The total number of shares of the Company’s common stock still available for issuance as of ~~September 30, 2020~~March 31, 2021 is ~~4,726,107~~4,179,857 shares.

~~During~~Stock-based compensation expense was $2.5 million and $3.4 million for the three months ended ~~September 30,~~March 31, 2021 and 2020, the Company recorded stock-based compensation (income) expense of $(0.5) million of which $2.0 million of expense was recorded in engineering, selling and administrative expense and $2.5 million of income was recorded in restructuring expense in the Condensed Consolidated Statement of Operations. During the nine months ended September 30, 2020, the Company recorded stock-based compensation of $5.4 million, of which $7.9 million of expense was recorded in engineering, selling and administrative expense and $2.5 million of income was recorded in restructuring expense in the Condensed Consolidated Statement of Operations. Income recorded in restructuring expense was primarily related to the forfeiture of grants associated with employee separation agreements. Stock-based compensation for the three and nine months ended September 30, 2019 was $2.2 million and $8.3 million, respectively, which was recorded in engineering, selling, and administrative expense in the Condensed Consolidated Statement 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.

NaN options to acquire shares of common stock were granted to employees during the three months ended ~~September 30, 2020~~March 31, 2021 and ~~2019. Options to acquire~~ 250,432 ~~and 210,243~~ shares of common stock were granted to employees during the ~~nine~~three months ended ~~September 30, 2020 and 2019, respectively.~~March 31, 2020. The options granted become exercisable in three annual increments over a three-year period beginning on the grant date and expire 10 years subsequent to the grant date.

~~During~~A total of 316,974 and 277,449 restricted stock units were issued by the Company to employees during the three months ended ~~September 30,~~March 31, 2021 and 2020, and 2019, 0 restricted stock units were granted to employees. A total of 305,519 and 178,371 restricted stock units, respectively, were granted to employees during the nine months ended September 30, 2020 and 2019, respectively. The restricted stock units granted to employees vest in three annual increments over a three-year period beginning on the grant date.

~~NaN~~A total of 203,697 and 321,599 performance shares units were ~~granted~~issued by the Company to employees during the three months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019. A total of 328,310 and 228,037 performance shares were granted during the nine months ended September 30, 2020 and 2019,~~ 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 2021 are weighted 60% on the 3-year average of the Company’s adjusted EBITDA percentage from 2021 to 2023 and 40% on non-new machines sales as of the year ended December 31, 2023. The 2021 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 shares granted in 2020 are based 100% on the 3-year average of the Company’s adjusted EBITDA percentage from continuing operations from 2020 to 2022 with a +/-20% modifier based 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 shares granted in 2019 are based 50% on~~Company issued a total ~~shareholder return relative to a defined peer group~~ of ~~companies during the~~ ~~three-year~~ ~~performance period~~56,672 and 50% on the Company’s adjusted EBITDA percentage from continuing operations in 2021. Depending on the foregoing factors, the number of shares earned could range from zero to two times the amount of performance shares outstanding on the vesting date.

~~NaN~~77,608 equity ~~compensation awards were granted~~grants to directors during the three months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019. A total of 77,608 and 50,673 equity compensation awards were granted to directors during the nine months ended September 30, 2020 and 2019,~~ respectively. The ~~2020~~2021 and ~~2019~~2020 equity compensation awards vested immediately upon the grant date.

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 3 reportable segments: Americas, EURAF, and MEAP. The Americas operating segment includes the North America and South America continents. The EURAF operating segment includes ~~the~~ Europe and Africa continents, excluding the Middle East region. The MEAP operating segment includes the Asia and Australia continents and the Middle East region.

The CODM evaluates the performance of its reportable segments based on net sales and operating income. Segment net sales are recognized in the geographic region the product is sold. Operating income for each segment includes net sales to third parties, cost of sales directly attributable to the segment, and operating expenses directly attributable to the segment. Manufacturing variances generated within each operating segment are maintained in each segment’s operating income. Operating income for each segment excludes other income and expense and certain expenses managed outside the operating segments. Costs excluded from segment operating income include various corporate expenses such as stock-based compensation expenses, income taxes, nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany sales between segments for management reporting purposes. The Company’s operating segments were identified as its reportable segments.

The following table shows information by reportable segment for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 and ~~2019:~~2020:

	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
	2020		2019		2020		2019		2021		2020
Net Sales
Americas	$	150.7	$	251.0	$	456.5	$	721.7	$	140.1	$	156.2
EURAF		154.7		139.2		413.1		476.0		154.5		122.9
MEAP		50.2		57.8		143.5		173.0		59.7		50.1
Total	$	355.6	$	448.0	$	1,013.1	$	1,370.7	$	354.3	$	329.2
Segment Operating Income
Americas	$	7.5	$	34.5	$	21.4	$	85.4	$	7.0	$	9.1
EURAF		7.3		1.9		2.5		7.0		6.3		(0.4	)
MEAP		7.8		5.9		20.7		18.3		6.8		6.3
Total	$	22.6	$	42.3	$	44.6	$	110.7	$	20.1	$	15.0
Depreciation
Americas	$	3.8	$	3.7	$	11.8	$	10.8	$	3.9	$	4.0
EURAF		4.1		3.9		11.8		11.3		4.9		3.8
MEAP		0.5		0.5		1.5		1.9		0.5		0.5
Corporate		0.8		0.8		2.2		2.3		0.7		0.7
Total	$	9.2	$	8.9	$	27.3	$	26.3	$	10.0	$	9.0
Capital Expenditures
Americas	$	0.9	$	5.3	$	2.4	$	11.3	$	0.8	$	0.3
EURAF		5.6		6.2		12.0		8.6		6.9		3.3
MEAP		0.8		1.2		0.9		2.5		0.2		—
Corporate		—		—		—		—		0.1		—
Total	$	7.3	$	12.7	$	15.3	$	22.4	$	8.0	$	3.6

A reconciliation of the Company’s segment operating income to operating income in the Condensed Consolidated Statement of Operations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended March 31,
	2020			2019			2020			2019			2021			2020
Segment operating income	$	22.6		$	42.3		$	44.6		$	110.7		$	20.1		$	15.0
Unallocated corporate expenses		(7.2	)		(9.8	)		(25.1	)		(20.0	)		(9.4	)		(9.3	)
Unallocated restructuring expense		(3.7	)		—			(3.7	)		(0.1	)
Total operating income (loss)	$	11.7		$	32.5		$	15.8		$	90.6
Total operating income													$	10.7		$	5.7

Net sales by geographic area for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ are summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
	2020		2019		2020		2019		2021		2020
United States	$	135.2	$	226.6	$	411.4	$	644.3	$	121.3	$	142.7
Europe		150.8		134.8		403.8		458.0		148.2		119.5
Other		69.6		86.6		197.9		268.4		84.8		67.0
Total net sales	$	355.6	$	448.0	$	1,013.1	$	1,370.7	$	354.3	$	329.2

Net sales by product for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ are summarized as follows:

*Other ~~revenue consists~~sales consist of ~~revenue related to CraneCare~~miscellaneous services such as training and

The Company is involved in various legal actions arising out of the normal course of business, which, taking into account the liabilities accrued and legal counsel’s evaluation of such actions, in the opinion of management, the ultimate resolution, individually and in the aggregate, is not expected to have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

As of ~~September 30, 2020,~~March 31, 2021, 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 ~~September 30, 2020,~~March 31, 2021, the largest self-insured retention level for new occurrences currently maintained by the Company is ~~$2.0~~$3.0 million per occurrence and applies to product liability claims for cranes manufactured in the United States.

Product liability reserves, recorded within other liabilities in the Condensed Consolidated Balance Sheets as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 were ~~$12.2~~$9.7 million and ~~$12.8~~$9.2 million, respectively. These reserves were estimated using a combination of actual case reserves and actuarial methods. Based on the Company’s experience in defending product liability claims, management believes the current reserves are adequate for estimated case resolutions on aggregate self-insured claims and insured claims. Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers.

As of March 31, 2021 and December 31, 2020, the Company had reserves of $59.9 million and $63.2 million, respectively, for warranty claims included in product warranties and other non-current liabilities in the Condensed Consolidated Balance Sheets. Certain of these warranty and other related claims involve legal matters in dispute that ultimately are resolved by negotiation, arbitration, or litigation. See Note 19, “Guarantees,” for further information.

The Company is involved in numerous lawsuits involving asbestos-related claims in which the Company is one of numerous defendants. After taking into consideration legal counsel’s evaluation of such actions, the current political environment with respect to asbestos related claims, and the liabilities accrued with respect to such matters, in the opinion of management, ultimate resolution is not expected to have a material adverse effect on the financial condition, results of operations, or cash flows of the Company.

~~As of September 30, 2020 and December 31, 2019, the Company had reserved $59.8 million and $60.6 million, respectively, for warranty claims included~~ in product warranties and other non-current liabilities in the Condensed Consolidated Balance Sheets. Certain of these warranty and other related claims involve legal matters in dispute that ultimately are resolved by negotiation, arbitration, or litigation. See Note 19, “Guarantees,” for further information.

During the nine months ended September 30, 2019, the Company settled a legal matter resulting in a net $24.4 million gain. The Company recorded this settlement by recognizing income of $15.5 million in other income (expense) - net and a benefit of $8.9 million in engineering, selling and administrative expenses in the Condensed Consolidated Statements of Operations.

It is reasonably possible that the estimates for warranty costs, product liability, environmental remediation, asbestos-related claims and other various legal matters may change based upon new information that may arise or matters that are beyond the scope of the Company’s historical experience. Presently, there are no reliable methods to estimate the amount of any such potential changes.

The Company periodically enters into transactions with customers that provide for buyback commitments. The Company evaluates each agreement at inception to determine if the customer has a significant economic incentive to exercise the buyback option. If it is determined that the customer has a significant economic incentive to exercise that right, the revenue is deferred and the agreement is accounted for as a lease in accordance with ~~Accounting Standards Codification~~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 ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 was ~~$32.8~~$40.9 million and ~~$34.1~~$35.9 million, respectively. The total amount of buyback commitments given by the Company and outstanding as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 was ~~$23.6~~$33.5 million and ~~$17.3~~$31.7 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 2030. The Company also has various loss guarantees with maximum liabilities of ~~$26.2~~$30.7 million and ~~$11.3~~$31.8 million as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, respectively. These amounts are not reduced for amounts the Company would recover from the repossession and subsequent resale of the cranes.

In the normal course of business, the Company provides its customers a warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranties generally provide that products will be free from defects for periods ranging from 12 months to 60 months. If a product fails to comply with the Company’s warranty, the Company may be obligated, at its expense, to correct any defect by repairing or replacing such defective products. The Company provides for an estimate of costs that may be incurred under its standard warranty period at the time product revenue is recognized. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect the Company’s warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. The revenue deferred related to extended warranty periods included in other

current and non-current liabilities as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 was ~~$7.2~~$6.3 million and ~~$8.3~~$6.2 million, respectively. Below is a table summarizing the warranty activity for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 and ~~2019:~~2020:

	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended March 31,
	2020			2019			2020			2019			2021			2020
Balance at beginning of period	$	60.1		$	51.3		$	60.6		$	47.8		$	63.2		$	60.6
Accruals for warranties issued during the period		8.2			8.9			24.3			29.0			5.8			8.6
Settlements made (in cash or in kind) during the period		(9.6	)		(9.4	)		(26.2	)		(25.9	)		(8.0	)		(8.8	)
Currency translation		1.1			(0.9	)		1.1			(1.0	)		(1.1	)		(0.7	)
Balance at end of period		59.8			49.9			59.8			49.9		$	59.9		$	59.7
Long-term warranty reserve		(13.7	)		(8.5	)		(13.7	)		(8.5	)
Product warranties	$	46.1		$	41.4		$	46.1		$	41.4

Included in the warranty balance as of March 31, 2021 and December 31, 2020 is $12.5 million and $13.0 million, respectively, of long-term warranty which is recorded in other non-current liabilities in the Condensed Consolidated Balance Sheets.

During the three months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ the Company recorded ~~$3.9~~$(0.1) million and ~~$1.1~~$1.5 million of restructuring (income) expense, respectively. ~~During the nine months ended September 30, 2020 and 2019, the Company recorded $5.6 million and $8.3 million of restructuring expense, respectively. Restructuring expense~~Expense for the three months ended September 30, 2020 primarily related to costs associated with headcount reductions in North America, partially offset by $2.5 million of income related to the forfeiture of equity compensation awards associated with employee separation agreements. Expenses for the nine months ended September 30,March 31, 2020, related primarily to costs associated with headcount reductions in Europe and North America, partially offset by $2.5 million of income primarily related to the forfeiture of equity compensation awards associated with employee separation agreements. Expenses for the three months ended September 30, 2019 related primarily to costs associated with headcount reductions in Europe. ~~Expenses for the nine months ended September 30, 2019 related primarily to costs associated with headcount reductions in India, Europe and North America.~~

The following is a rollforward of the Company's restructuring accrual, which is included within accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets, for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 and ~~2019:~~2020:

	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended March 31,
	2020			2019			2020			2019			2021			2020
Balance at beginning of period	$	1.9		$	3.1		$	2.0		$	3.1		$	5.3		$	2.0
Restructuring expenses*		6.4			1.1			8.1			8.3
Restructuring (income) expenses														(0.1	)		1.5
Use of reserve		(2.1	)		(1.9	)		(3.9	)		(9.1	)		(1.5	)		(1.1	)
Reserve reclassification		—			—			—			—			—			—
Currency translation		—			(0.1	)		—			(0.1	)		0.2			—
Balance at end of period	$	6.2		$	2.2		$	6.2		$	2.2		$	3.9		$	2.4

*Restructuring expense within the rollforward excludes income recorded related to the forfeiture of equity compensation awards associated with employee separation agreements which was recorded directly to restructuring expense in the Condensed Consolidated Statement of Operations and, therefore, did not impact the restructuring accrual.

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 for each of the related plans.~~qualifications. Healthcare benefits may be subject to deductibles, co-payments and other limitations. The Company reserves the right to modify benefits unless prohibited by ~~country specific~~local laws or regulations.

In March 2021, the Company applied provisions from the American Rescue Plan Act of 2021 (“the Act”) that changed the interest rates used to calculate the U.S. pension plans funded status. The Company elected to apply the new interest rates in the Act back to 2020, which has resulted in no minimum contributions to the U.S. pension plan for 2021.

The components of periodic benefit cost for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ are summarized as follows:

	Three Months Ended September 30, 2020									Three Months Ended September 30, 2019									Three Months Ended March 31, 2021
							Postretirement									Postretirement									Postretirement
	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
	Plans			Plans			Plans			Plans			Plans			Plans			Plans			Plans			Plans
Service cost - benefits earned during the period	$	0		$	0.5		$	0		$	0		$	0.5		$	0.1		$	0		$	0.6		$	0
Interest cost of projected benefit obligations		1.0			0.4			0.1			1.3			0.5			0.1			0.7			0.3			0
Expected return on plan assets		(1.3	)		(0.3	)		0			(1.1	)		(0.3	)		0			(1.2	)		(0.3	)		0
Amortization of prior service cost		0			0			(0.6	)		0			0			(0.7	)		0			0			(0.7	)
Amortization of actuarial net loss		0.8			0.4			0			0.8			0.3			0			0.8			0.5			0
Net periodic benefit cost	$	0.5		$	1.0		$	(0.5	)	$	1.0		$	1.0		$	(0.5	)	$	0.3		$	1.1		$	(0.7	)

Nine Months Ended September 30, 2020

Nine Months Ended September 30, 2019

Postretirement

Postretirement

U.S.

Non-U.S.

Health and

U.S.

Non-U.S.

Health and

Pension

Pension

Other

Pension

Pension

Other

Plans

Plans

Plans

Plans

Plans

Plans

Service cost - benefits earned during the period

$
0

$
1.5

$
0.1

$
0

$
1.5

$
0.3

Interest cost of projected benefit obligations

3.0

1.2

0.3

3.9

1.5

0.5

Expected return on plan assets

(3.9
)

(0.7
)

0

(3.3
)

(0.9
)

0

Amortization of prior service cost

0

0

(2.0
)

0

0

(2.1
)
Amortization of actuarial net loss

2.2

1.2

0

2.4

0.9

0

Net periodic benefit cost

$
1.3

$
3.2

$
(1.6
)

$
3.0

$
3.0

$
(1.3
)

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 Statement 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, ~~2019,~~2020, 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 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 has seen orders and backlog improve in the first quarter of 2021 in all three segments. There is optimism that this improvement will continue through 2021 as the global economy recovers from the COVID-19 pandemic. However, there remains uncertainty regarding additional impacts the pandemic will have on the Company’s results of operations due to potential future outbreaks and/or government mandated lockdowns.

The Company continues to ~~operate all its facilities across~~monitor the ~~globe with special preventative measures designed to mitigate~~impacts the ~~spread of COVID-19. Despite all facilities being operational,~~COVID-19 pandemic is having on the Company has experienced a decline in demand for its products due to COVID-19. The Company has and will continue to manage the demand decline with rolling shutdowns and reduced work schedules as needed within its facilities. In addition, future outbreaks or government mandates in response to COVID-19 could result in plant shutdowns or other actions that limit productivity or prevent the Company from delivering finished products. The Company expects the reduced demand, primarily driven by the Americas segment, and production slowdowns to have an adverse effect on financial results for the remainder of 2020. Additionally, while the Company’sglobal supply chain ~~has recovered~~and is working closely with its global supplier network to ensure there is adequate materials to meet current demand, uncertainty related to future impacts from the COVID-19 pandemic, including recent government actions in Europe, on the Company’s global supplier network could have an adverse effect on financial results for the remainder of 2020.customer demand.

The future extent of the COVID-19 pandemic impact on the Company’s financial results is dependent on a number of factors, including the length ~~and severity~~ of the pandemic, associated government actions and the related effect on the global economy and markets in which the Company serves, all of which are ~~highly~~ uncertain and cannot be predicted.

The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments consist of the Americas, EURAF, and MEAP. 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 September 30,										Nine Months Ended September 30,
	2020		2019		Dollar Change			Percentage Change			2020		2019		Dollar Change			Percentage Change			Three Months Ended March 31, 2021		Three Months Ended March 31, 2020			Dollar Change			Percentage Change
Net Sales
Americas	$	150.7	$	251.0	$	(100.3	)		(40.0	)%	$	456.5	$	721.7	$	(265.2	)		(36.7	)%	$	140.1	$	156.2		$	(16.1	)		(10.3	)%
EURAF		154.7		139.2		15.5			11.1	%		413.1		476.0		(62.9	)		(13.2	)%		154.5		122.9			31.6			25.7	%
MEAP		50.2		57.8		(7.6	)		(13.1	)%		143.5		173.0		(29.5	)		(17.1	)%		59.7		50.1			9.6			19.2	%

Segment Operating Income
Segment Operating Income (Loss)
Americas	$	7.5	$	34.5	$	(27.0	)		(78.3	)%	$	21.4	$	85.4	$	(64.0	)		(74.9	)%	$	7.0	$	9.1		$	(2.1	)		(23.1	)%
EURAF		7.3		1.9		5.4			284.2	%		2.5		7.0		(4.5	)		(64.3	)%		6.3		(0.4	)		6.7		*
MEAP		7.8		5.9		1.9			32.2	%		20.7		18.3		2.4			13.1	%		6.8		6.3			0.5			7.9	%

Americas net sales decreased ~~40.0%~~10.3% for ~~the~~ three months ended ~~September 30, 2020~~March 31, 2021 to ~~$150.7~~$140.1 million from ~~$251.0~~$156.2 million for the three months ended September 30, 2019. The decrease was primarily from lower crane shipments due to a lower shippable backlog. The lower shippable backlog was due to lower orders in the first half of the year as a result of a decline in demand in the region primarily from the COVID-19 pandemic.

~~Americas operating income decreased $27.0 million for the three months ended September 30, 2020 to $7.5 million from $34.5 million for the three months ended September 30, 2019.~~ ~~The decrease was primarily due to the decrease in net sales.~~

Americas net sales decreased 36.7% for the nine months ended September 30, 2020 to $456.5 million from $721.7 million for the nine months ended September 30, 2019. The decrease was primarily from lower crane shipments due to lower demand primarily from the COVID-19 pandemic.

~~Americas operating income decreased $64.0 million for the nine months ended September 30, 2020 to $21.4 million from $85.4 million for the nine months ended September 30, 2019.~~ March 31, 2020. The decrease was primarily due to lower ~~net~~shipments of cranes for the energy and commercial construction end markets and a reduced level of aftermarket sales due to lower crane utilization.

Americas operating income decreased 23.1% for the three months ended March 31, 2021 to $7.0 million from $9.1 million for the three months ended March 31, 2020. The decrease was primarily due to lower volume of crane shipments and ~~additional~~aftermarket sales, increased legal costs and short-term incentive compensation costs. This was partially offset by expenses related to the triennial ConExpo tradeshow held in March 2020. ~~This was partially offset by $4.3 million of lower other engineering, selling and administrative expenses and $1.8 million of lower restructuring expense.~~

EURAF net sales increased ~~11.1%~~25.7% for the three months ended ~~September 30, 2020~~March 31, 2021 to ~~$154.7~~$154.5 million from ~~$139.2~~$122.9 million for the three months ended ~~September 30, 2019.~~March 31, 2020. The increase was primarily due to higher shipments of cranes for the ~~timing of crane shipments as a result of the impact of the COVID-19 pandemic and $6.4~~commercial construction end market. EURAF net sales was favorably impacted by approximately $11.8 million from ~~favorable~~ changes in foreign currency exchange rates.

EURAF operating income ~~increased $5.4~~was $6.3 million for the three months ended ~~September 30, 2020~~March 31, 2021 compared to ~~$7.3 million from $1.9~~an operating loss of $0.4 million for the three months ended ~~September 30, 2019. This was primarily due to the~~March 31, 2020, an increase ~~in net sales.~~

EURAF net sales decreased 13.2% for the nine months ended September 30, 2020 to $413.1 million from $476.0 million for the nine months ended September 30, 2019. The decrease was primarily due to lower crane shipments as a result of ~~the COVID-19 pandemic and $0.3 million from unfavorable changes in foreign currency exchange rates.~~

EURAF operating income decreased $4.5 million for the nine months ended September 30, 2020 to $2.5 million from $7.0 million for the nine months ended September 30, 2019. The decrease was primarily due to the decrease in net sales and $9.9 million of period costs recognized in the first half of the year from underutilized manufacturing facilities due to the COVID-19 pandemic. This was partially offset by $8.0 million of lower engineering, selling and administrative expenses and $2.4 million of lower restructuring expenses.

MEAP net sales decreased 13.1% for the three months ended September 30, 2020 to $50.2 million from $57.8 million for the three months ended September 30, 2019. The decrease was primarily due to lower crane shipments within the commercial construction end market. This was partially offset by approximately $1.3 million in favorable changes in foreign currency exchange rates.

~~MEAP operating income increased $1.9 million for the three months ended September 30, 2020 to $7.8 million from $5.9 million for the three months ended September 30, 2019.~~$6.7 million. The increase was primarily due to ~~favorable product mix and $1.7 million in lower engineering, selling and administrative expenses, which~~higher volume of crane shipments. Operating income was ~~partially offset by the decrease in net sales.~~

MEAP net sales decreased 17.1% for the nine months ended September 30, 2020 to $143.5 million from $173.0 million for the nine months ended September 30, 2019. The decrease was primarily due to lower shipments of cranes due to the COVID-19 pandemic. MEAP net sales were also unfavorablyfavorably impacted by approximately ~~$1.5~~$1.3 million from changes in foreign currency exchange rates.

MEAP net sales increased ~~$2.4~~19.2% for the three months ended March 31, 2021 to $59.7 million from $50.1 million for the ~~nine~~three months ended ~~September 30, 2020 to $20.7 million from $18.3 million for the nine months ended September 30, 2019.~~March 31, 2020. The increase was primarily due to ~~$5.1 million in lower engineering, selling and administrative expenses in addition to $2.2 million in lower restructuring expense. This was partially offset by~~higher shipments of cranes for the ~~decrease in net sales.~~

~~Consolidated~~ end market. MEAP net sales was favorably impacted by approximately $3.7 million from changes in foreign currency exchange rates.

MEAP operating income increased 7.9% for the three months ended March 31, 2021 to $6.8 million from $6.3 million for the three months ended March 31, 2020. The increase was primarily due to higher volume of crane shipments.

Results of Operations for the ~~Three~~ Quarters Ended March 31, 2021 and ~~Nine Months Ended September 30,~~ 2020 ~~and 2019~~

	Three Months Ended September 30,									Nine Months Ended September 30,									Three Months Ended March 31,
	2020			2019			% Change			2020			2019			% Change			2021			2020			2021 to 2020 % Change
Orders																			$	473.6		$	375.0			26.3	%
Backlog																				662.5			520.9			27.2	%
Net sales	$	355.6		$	448.0			(20.6	)%	$	1,013.1		$	1,370.7			(26.1	)%		354.3			329.2			7.6	%
Gross profit		65.1			88.4			(26.4	)%		176.7			263.8			(33.0	)%		68.4			63.2			8.2	%
Gross profit %		18.3	%		19.7	%					17.4	%		19.2	%					19.3	%		19.2	%
Engineering, selling and administrative expenses		49.5		54.8				(9.7	)%		155.1		164.7				(5.8	)%	57.7			55.9				3.2	%
Restructuring expense		3.9			1.1			254.5	%		5.6			8.3			(32.5	)%
Restructuring (income) expense																				(0.1	)		1.5		*
Interest expense		7.3			7.2			1.4	%		21.7			25.6			(15.2	)%		7.1			7.2			(1.4	)%
Loss on debt extinguishment		—			—		*				—			25.0		*
Other income (expense) - net		2.6			(3.8	)		(168.4	)%		(4.3	)		8.8			(148.9	)%
Amortization of deferred financing fees																				0.4			0.4			—
Other expense - net																				2.1			4.0			47.5	%
Provision for income taxes		7.0			3.1			125.8	%		9.6			10.3			(6.8	)%		4.2			1.9		*
*Measure not meaningful

Orders for three months ended March 31, 2021 increased 26.3% to $473.6 million from $375.0 million for the three months ended March 31, 2020. The increase was mainly due to an increase in market demand in all regions. Orders were favorably impacted by approximately $20.8 million due to changes in foreign currency exchange rates.

As of March 31, 2021, total backlog was $662.5 million, a 22.0% increase from the December 31, 2020 backlog of $543.2 million, and a 27.2% increase from the March 31, 2020 backlog of $520.9 million. Backlog was favorably impacted by approximately $21.6 million year over year and unfavorably impacted by approximately $14.0 million from December 31, 2020, due to changes in foreign currency exchange rates.

Net sales for the three months ended ~~September 30, 2020 decreased 20.6%~~March 31, 2021 increased 7.6% to ~~$355.6~~$354.3 million from ~~$448.0~~$329.2 million in the same period in 2019. The decrease was primarily from lower crane shipments due to a lower shippable backlog. The lower shippable backlog was due to lower orders in the first half of the year as a result of a decline in demand from the COVID-19 pandemic. This was partially offset by $7.4 million from favorable changes in foreign currency exchange rates.

Net sales for the nine months ended September 30, 2020 decreased 26.1% to $1,013.1 million from $1,370.7 million for the same period in 2019. The decrease was primarily from lower crane shipments due to lower demand primarily from the COVID-19 pandemic. Net sales were unfavorably impacted by $2.2 million from unfavorable changes in foreign currency exchange rates.

~~Orders~~ for the three months ended ~~September 30, 2020 increased 10.5% to $389.9 million from $352.8 million for the same period in 2019. The~~March 31, 2020. This increase ~~in orders~~ was primarily attributable to higher ~~demand within the Americas and MEAP segments. Orders were favorably impacted by $6.2 million from favorable changes in foreign currency exchange rates.~~

Asshipments of September 30, 2020, total backlog was $464.8 million, a 0.4% decrease from the September 30, 2019 backlog of $466.5 million. Backlog was unfavorably impacted by a decline in demand in the Americas segment primarily due to the impact of the COVID-19 pandemic, partially offset by higher backlogcranes in the EURAF and MEAP ~~segments and $15.3~~regions, partially offset by lower shipments of cranes in the Americas region. Net sales were favorably impacted by $15.4 million from ~~favorable~~ changes in foreign currency exchange rates.

Gross profit for the three months ended ~~September 30, 2020~~March 31, 2021 was ~~$65.1~~$68.4 million, ~~a decrease~~an increase of ~~$23.3~~$5.2 million compared to ~~$88.4~~$63.2 million for the ~~same period in 2019.~~three months ended March 31, 2020. This ~~decrease~~increase was ~~primarily~~mainly due to the ~~decrease~~increase in ~~net sales. Gross profit was also impacted by $1.5~~sales volume and $3.8 million ~~from~~of favorable changes in foreign currency exchange rates.

Gross profit percentage ~~decreased in the three months ended September 30, 2020 to 18.3% from 19.7% in the same period in 2019 primarily due to lower production levels from reduced demand due to the COVID-19 pandemic.~~remained flat year-over-year.

Gross profit for the nine months ended September 30, 2020 was $176.7 million, a decrease of $87.1 million compared to $263.8 million for the same period in 2019. This decrease was primarily due to the decrease in net sales and period costs from underutilized manufacturing facilities due to the COVID-19 pandemic. Gross profit was also unfavorably impacted by $0.4 million from unfavorable changes in foreign currency exchange rates.

Gross profit percentage decreased in the nine months ended September 30, 2020 to 17.4% from 19.2% in the same period in 2019 primarily due to the underutilization of the Company’s manufacturing facilities from the COVID-19 pandemic.

Engineering, selling and administrative expenses ~~decreased 9.7%~~increased 3.2% to ~~$49.5~~$57.7 million for the three months ended ~~September 30, 2020~~March 31, 2021 compared to ~~$54.8~~$55.9 million for the ~~same period in 2019. The decrease~~three months ended March 31, 2020. This increase was primarily due to ~~lower~~higher short-term incentive compensation costs, ~~reduced discretionary spending and a decrease~~partially offset by lower tradeshow costs related to the triennial ConExpo trade show in ~~wages and benefits due to headcount reductions primarily in North America.~~March 2020. Engineering, selling and administrative expenses were ~~unfavorably impacted~~higher by ~~$1.0~~$2.3 million from changes in foreign currency exchange rates.

Engineering, selling and administrative expenses decreased 5.8% to $155.1 million for the nine months ended September 30, 2020 compared to $164.7 million for the same period in 2019. The decrease was primarily due to lower short-term incentive compensation costs, reduced discretionary spending and a decrease in wages and benefits due to cost reductions primarily in North America. This was partially offset by a $8.9 million benefit recorded in 2019 related to the settlement of a legal matter. Engineering, selling and administrative expenses were also favorably impacted by $0.8 million from changes in foreign currency exchange rates.

During the three months ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ the Company recorded ~~$3.9~~$(0.1) million and ~~$1.1~~$1.5 million of restructuring (income) expense, respectively. ~~Restructuring expense~~Expense for the three months ended ~~September 30,~~March 31, 2020 related primarily to ~~costs associated with headcount reductions in North America. Restructuring expense for the three months ended September 30, 2019 related primarily to costs associated with~~ headcount reductions in Europe.

During the nine months ended September 30, 2020 and 2019, the Company recorded $5.6 million and $8.3 million of restructuring expense, respectively. Restructuring expense for the nine months ended September 30, 2020 related primarily to costs associated with headcount reductions in Europe and North America. Restructuring expense for the nine months ended September 30, 2019 related primarily to costs associated with headcount reductions in India, Europe and North America.

Interest expense for the three months ended ~~September 30, 2020 remained flat year-over-year.~~

~~Interest expense was $21.7~~March 31, 2021 totaled $7.1 million ~~during the nine months ended September 30, 2020 and $25.6~~compared to $7.2 million ~~during the nine months ended September 30, 2019. This decrease was primarily due to a reduction of the average effective interest rate from 10.4%~~ for the nine months ended September 30, 2019 to 8.8% for the nine months ended September 30, 2020. The decrease in the average effective interest rate was primarily due to the refinancing of the Company’s senior secured high yield notes that occurred in the first quarter of 2019 as well as the reduction in interest rates on the Company’s variable rate debt.

During the nine months ended September 30, 2019, the Company recorded a $25.0 million charge associated with the Company’s refinancing of the Prior ABL Facility and Prior 2021 Notes. The charge is composed of $16.6 million of call premium on the Prior 2021 Notes, $5.3 million of unamortized discount on the Prior 2021 Notes and $3.1 million of unamortized debt issuance costs.

~~Other income (expense) - net was $2.6 million during~~ the three months ended ~~September 30, 2020~~March 31, 2020. Interest expense was flat year-over-year due to a consistent effective interest rate and ~~$(3.8) million for~~amount of debt outstanding. See further detail at Note 11, “Debt” to the ~~same period in 2019.~~ Condensed Consolidated Financial Statements.

Other expense – net ~~during~~for the three months ended ~~September 30, 2020~~March 31, 2021 was $2.1 million. Other expense – net was primarily composed of ~~$3.4~~$1.7 million of ~~net~~ foreign currency ~~gains partially offset by~~exchange losses and $0.2 million of pension benefit and postretirement health costs.

Other expense – net for three months ended March 31, 2020 was $4.0 million. Other expense – net was primarily composed of $3.9 million of foreign currency exchange losses and $0.4 million of pension benefit and postretirement health costs. ~~Other~~

Provision for income ~~(expense) – net during~~taxes for the three months ended ~~September 30, 2019~~March 31, 2021 was ~~primarily composed of $6.2~~$4.2 million ~~of net foreign currency losses and $1.0~~compared to $1.9 million ~~of pension benefit and postretirement health costs. This was partially offset by a $3.5 million gain on the sale of the Company’s Manitowoc, Wisconsin manufacturing facility during the period.~~

~~Other income (expense) - net was $(4.3) million during the nine months ended September 30, 2020 and $8.8 million~~ for the same period in 2019. Other income (expense) – net during the nine months ended September 30, 2020 was primarily composed of $2.6 million of net foreign currency losses and $1.2 million of pension benefit and postretirement health costs. Other income (expense) – net during the nine months ended September 30, 2019 was primarily composed of a $15.5 million benefit related to the settlement of a legal matter and a $3.5 million gain on the sale of the Company’s Manitowoc, Wisconsin manufacturing facility. This was partially offset by $3.1 million of pension benefit and postretirement health costs and $7.2 million of net foreign currency losses.

~~For~~ the three months ended ~~September 30, 2020~~March 31, 2020. The increase relates primarily to higher pretax income and ~~2019, the Company recorded~~ a ~~provision for income taxes of $7.0 million and $3.1 million, respectively.~~ ~~The year-over-year increase~~change in the ~~Company’s provision for~~jurisdictional mix of income ~~taxes primarily relates~~compared to ~~additional tax expense in certain foreign jurisdictions.~~the previous year. In addition, the Company’s effective tax rate varies from the U.S. federal statutory rate of 21% due to ~~the~~ results of foreign operations that are subject to income taxes at different statutory rates.

For the nine months ended September 30, 2020 and 2019, the Company recorded a provision for income taxes of $9.6 million and $10.3 million, respectively. The decrease in the Company’s tax expense relates primarily to the year-to-date discrete tax benefit recorded as a result of the CARES Act, which was partially offset by additional tax expense in certain foreign jurisdictions. In addition, the Company’s effective tax rate varies from the U.S. federal statutory rate of 21% due to the results of foreign operations that are subject to income taxes at different statutory rates.

The table below shows a summary of cash flows for ~~the nine~~three months ended ~~September 30, 2020~~March 31, 2021 and ~~2019:~~2020:

Cash flows provided by operating activities for the three months ended March 31, 2021 were $40.8 million and were primarily driven by a net decrease in working capital. The decrease in working capital resulted primarily from collections of accounts receivable balances.

Cash flows used for operating activities for the ~~nine~~three months ended ~~September 30,~~March 31, 2020 were ~~$70.9~~$78.6 million and were primarily driven by a net increase in working capital of ~~$84.1~~$83.6 million. The increase in working capital ~~was~~ primarily ~~due to~~resulted from an increase in inventory of ~~$55.3~~$88.5 million from December 31, 2019 and payments of incentive compensation earned in the prior year. The increase in inventory is consistent with the Company’s history of building inventory in anticipation of the summer construction season in the northern hemisphere. This was partially offset by a $5.0 million increase in net ~~$13.2 million which is composed of a net loss of $20.9 million less $34.1 million of~~income excluding adjustments to reconcile net loss to operating cash flows from operating activities.

Cash ~~flows used for operating activities for the nine months ended September 30, 2019 were $197.9 million~~ and were primarily driven by trade receivables sold to the Company’s prior securitization program resulting in $126.3 million of cash flows being reported in cash provided by investing activities, $75.0 million of purchases of accounts receivable previously sold to the prior accounts receivable securitization program and net investments in working capital. This was primarily offset by $24.4 million of net cash received from the settlement of a legal matter.

Cash flows used for investing activities were ~~$15.1~~$8.0 million for the ~~nine~~three months ended ~~September 30,~~March 31, 2021 and consisted of capital expenditures.

Cash flows used for investing activities were $3.5 million for the three months ended March 31, 2020 and consisted of ~~$15.3~~$3.6 million of capital expenditures partially offset by ~~$0.2~~$.01 million inof proceeds from ~~sales~~the sale of property, plant and equipment.

Cash flows provided by investing activities were $121.1 million for nine months ended September 30, 2019 and consisted of $126.3 million of cash collections on accounts receivable sold to the prior accounts receivable securitization program and proceeds from sales of property, plant and equipment of $17.2 million. This was partially offset by capital expenditures of $22.4 million.

Cash flows used for financing activities were ~~$14.6~~zero for the three months ended March 31, 2021 and consisted of $0.8 million of payments of other debt offset by $0.8 million of cash received from the exercise of stock options.

Cash flows used for financing activities were $12.4 million for the ~~nine~~three months ended ~~September 30,~~March 31, 2020 and consisted primarily of $12.0 million of repurchases of ~~the Company’s~~ common stock and ~~$2.7~~$0.5 million of payments on other debt.

Cash flows provided by financing activities were $5.1 million for the nine months ended September 30, 2019 and consisted of $300.0 million of proceeds from long-term debt and $131.4 million of proceeds from borrowings under the ABL Revolving Credit Facility. This was partially offset by payments of $276.6 million to terminate the Prior 2021 Notes, $131.4 million of payments on the ABL Revolving Credit Facility, $8.3 million of debt issuance costs on the ABL Revolving Credit Facility and 2026 Notes and $7.4 million from the repurchase of common stock.

The Company’s liquidity position as of ~~September 30, 2020,~~March 31, 2021 and December 31, ~~2019 and September 30, 2019~~2020 is summarized as follows:

	September 30, 2020			December 31, 2019			September 30, 2019			March 31, 2021			December 31, 2020
Cash and cash equivalents	$	101.1		$	199.3		$	67.5		$	158.5		$	128.7
Revolver borrowing capacity		261.2			210.4			253.8			243.2			243.8
Other debt availability		37.4			38.8			37.1			44.6			42.2
Less: Borrowings on revolver		—			—			—			—			—
Less: Borrowings on other debt		—			—			—
Less: Outstanding letters of credit		(3.0	)		(4.0	)		(4.0	)		(3.0	)		(3.0	)
Total liquidity	$	396.7		$	444.5		$	354.4		$	443.3		$	411.7

The Company ~~continues to assess its business operations to ensure~~believes its liquidity isand expected cash flows from operations should be sufficient to meet expected working capital, capital expenditure and other general ongoing operational needs ~~for~~in the subsequent twelve months. The Company has and continues to preserve its liquidity in response to the COVID-19 pandemic by managing its cash flow, such as reducing discretionary spending, suspending its share repurchase program and reducing capital expenditures. In addition, the Company suspended 2020 base salary increases for its employees and executive officers. Globally, the Company has made use of available government subsidies and other programs to aid with liquidity and employee retention and will continue to review additional programs as they become available.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 term of 5 years and includes a $75.0 million letter of credit sub-facility, $10.0 million of which is available to the Company’s German subsidiary that is a borrower under the ABL Revolving Credit Facility.

In addition to the ABL Revolving Credit Facility, the Company has access to non-committed overdraft facilities to fund working capital in Europe and China. There are six facilities, of which four facilities are denominated in Euros totaling ~~€20.0~~€26.0 million, one facility denominated in ~~U.S.~~US dollars totaling $9.5 million, and one denominated in Chinese Yuan totaling ~~¥30.0~~¥30.0 million. Total U.S. dollar availability as of ~~September 30, 2020~~March 31, 2021 for the six overdraft facilities is ~~$37.4~~$44.6 million.

Outstanding debt as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 is summarized as follows:

	September 30, 2020			December 31, 2019			March 31, 2021			December 31, 2020
Senior secured asset based revolving credit facility	$	—		$	—		$	—		$	—
Senior secured second lien notes due 2026		300.0			300.0			300.0			300.0
Other debt		14.5			16.7			13.8			14.7
Deferred financing costs		(4.0	)		(4.5	)		(3.6	)		(3.8	)
Total debt		310.5			312.2			310.2			310.9
Short-term borrowings and current portion of long-term debt		(3.7	)		(3.8	)		(10.1	)		(10.5	)
Long-term debt	$	306.8		$	308.4		$	300.1		$	300.4

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.

The Company uses EBITDA, adjusted EBITDA and adjusted operating income, which are financial measures that are not prepared in accordance with GAAP, as additional metrics to evaluate the Company’s performance. The Company defines EBITDA as net ~~income (loss)~~loss before interest, taxes, depreciation and amortization. The Company defines adjusted EBITDA as EBITDA plus the addback of certain restructuring and other charges. The Company defines adjusted operating income as adjusted EBITDA excluding the addback of depreciation and amortization. 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 GAAP financial information provided herein.

The reconciliation of net ~~income (loss)~~loss to EBITDA, and further to adjusted EBITDA and to adjusted operating income and operating income for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 and ~~2019 is~~trailing twelve months, are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,						Trailing Twelve			Three Months Ended March 31,						Trailing Twelve
	2020			2019			2020			2019			Months			2021			2020			Months
Net income (loss)	$	(0.4	)	$	18.0		$	(20.9	)	$	37.3		$	(11.7	)
Net loss																$	(3.1	)	$	(7.8	)	$	(14.4	)
Interest expense and amortization of deferred financing fees		7.7			7.6			22.8			26.8			30.2			7.5			7.6			30.5
Provision for income taxes		7.0			3.1			9.6			10.3			11.7			4.2			1.9			19.4
Depreciation expense		9.2			8.9			27.3			26.3			36.0			10.0			9.0			38.2
Amortization of intangible assets		—			—			0.2			0.2			0.3			0.1			0.1			0.3
EBITDA		23.5			37.6			39.0			100.9			66.5			18.7			10.8			74.0
Restructuring expense		3.9			1.1			5.6			8.3			7.1
Loss on debt extinguishment		—			—			—			25.0			—
Restructuring (income) expense																	(0.1	)		1.5			5.4
Other non-recurring charges (1)		—			0.3			—			0.3			2.8			0.4			—			0.4
Other (income) expense - net (2)		(2.6	)		3.8			4.3			(8.8	)		3.4
Other expense - net ⁽²⁾																	2.1			4.0			8.1
Adjusted EBITDA		24.8			42.8			48.9			125.7			79.8			21.1			16.3			87.9
Depreciation expense		(9.2	)		(8.9	)		(27.3	)		(26.3	)		(36.0	)		(10.0	)		(9.0	)		(38.2	)
Amortization of intangible assets		—			—			(0.2	)		(0.2	)		(0.3	)		(0.1	)		(0.1	)		(0.3	)
Adjusted operating income		15.6			33.9			21.4			99.2			43.5			11.0			7.2			49.4
Restructuring expense		(3.9	)		(1.1	)		(5.6	)		(8.3	)		(7.1	)
Other non-recurring charges		—			(0.3	)		—			(0.3	)		(2.8	)
Restructuring income (expense)																	0.1			(1.5	)		(5.4	)
Other non-recurring charges ⁽¹⁾																	(0.4	)		—			(0.4	)
Operating income	$	11.7		$	32.5		$	15.8		$	90.6		$	33.6		$	10.7		$	5.7		$	43.6

Adjusted EBITDA margin percentage		7.0	%		9.6	%		4.8	%		9.2	%		5.4	%
Adjusted operating income margin percentage		4.4	%		7.6	%		2.1	%		7.2	%		2.9	%

The Company uses ~~adjusted operating cash flows and~~ free cash flows, which ~~are~~is a financial ~~measures~~measure that ~~are~~is not prepared in accordance with GAAP, as an additional ~~metrics~~metric to evaluate the Company’s performance. ~~Adjusted operating~~Free cash flows is defined as net cash ~~flows~~ provided by (used for) operating activities ~~plus cash receipts on sold accounts receivable and other one-time items. Free cash flows is defined as adjusted operating cash flows~~ less capital expenditures. ~~Adjusted operating cash flows and free~~Free cash flows for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ are summarized as follows:

Three Months Ended
September 30,

Nine Months Ended
September 30,

2020

2019

2020

2019

Net cash provided by (used for) operating
activities

$
27.8

$
37.5

$
(70.9
)

$
(197.9
)
Cash receipts on sold accounts receivable

—

—

—

126.3

Net payments on accounts
receivable securitization program

—

—

—

75.0

Adjusted operating cash flows

27.8

37.5

(70.9
)

3.4

Capital expenditures

(7.3
)

(12.7
)

(15.3
)

(22.4
)
Free cash flows

$
20.5

$
24.8

$
(86.2
)

$
(19.0
)

	Three Months Ended March 31,
	2021			2020
Net cash provided by (used for) operating activities	$	40.8		$	(78.6	)
Capital expenditures		(8.0	)		(3.6	)
Free cash flows	$	32.8		$	(82.2	)

The Company's critical accounting policies have not materially changed since the ~~2019~~2020 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, ~~2019~~2020 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 ~~2019~~2020 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, ~~2019.~~2020.

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, ~~2019,~~2020, which was filed with the Securities and Exchange Commission on February 14, 2020, other than as such were previously supplemented and amended by Part II, Item 1A, “Risk Factors,” in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, which was filed with the Securities and Exchange Commission on May 8, 2020.12, 2021.

Exhibit No.	Description	Filed/Furnished Herewith		Description	Filed/Furnished Herewith

31	Rule 13a - 14(a)/15d - 14(a) Certifications	X	(1)	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)	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)	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)
101.INS				Inline XBRL Instance Document – The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document	X	(1)

101.SCH				Inline XBRL Taxonomy Extension Schema Document	X	(1)

101.CAL				Inline XBRL Taxonomy Extension Calculation Linkbase Document	X	(1)

101.DEF				Inline XBRL Taxonomy Extension Definition Linkbase Document	X	(1)

101.LAB				Inline XBRL Taxonomy Extension Labels Linkbase Document	X	(1)

101.PRE				Inline XBRL Taxonomy Extension Presentation Linkbase Document	X	(1)

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

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)

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

Average quarterly availability	Alternative base rate spread	Eurodollar and overnight LIBOR spread
≥ 50% of Aggregate Commitment	0.25%	1.25%
< 50% of Aggregate Commitment	0.50%	1.50%

Date: ~~November 5, 2020~~May 6, 2021	The Manitowoc Company, Inc.
	(Registrant)


	/s/ Aaron H. Ravenscroft
	Aaron H. Ravenscroft
	President and Chief Executive Officer
	(Principle Executive Officer)

	/s/ David J. Antoniuk
	David J. Antoniuk
	Executive Vice President and Chief Financial Officer
	(Principle Financial Officer)

	/s/ Brian P. Regan
	Brian P. Regan
	Vice President and Corporate Controller
	(Principle Accounting Officer)

	Fair Value as of September 30, 2020
	Level 1		Level 2		Level 3		Total		Recognized Location
Forward currency exchange contracts	$	—	$	0.1	$	—	$	0.1	Other current assets

	Fair Value as of December 31, 2019
	Level 1		Level 2		Level 3		Total		Recognized Location
Forward currency exchange contracts	$	—	$	0.1	$	—	$	0.1	Other current assets
Forward currency exchange contracts		—		0.1		—		0.1	Accounts payable and accrued expenses

	Nine Months Ended September 30, 2020									Nine Months Ended September 30, 2019
							Postretirement									Postretirement
	U.S.			Non-U.S.			Health and			U.S.			Non-U.S.			Health and
	Pension			Pension			Other			Pension			Pension			Other
	Plans			Plans			Plans			Plans			Plans			Plans
Service cost - benefits earned during the period	$	0		$	1.5		$	0.1		$	0		$	1.5		$	0.3
Interest cost of projected benefit obligations		3.0			1.2			0.3			3.9			1.5			0.5
Expected return on plan assets		(3.9	)		(0.7	)		0			(3.3	)		(0.9	)		0
Amortization of prior service cost		0			0			(2.0	)		0			0			(2.1	)
Amortization of actuarial net loss		2.2			1.2			0			2.4			0.9			0
Net periodic benefit cost	$	1.3		$	3.2		$	(1.6	)	$	3.0		$	3.0		$	(1.3	)