Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document and entity information | |||
Entity Registrant Name | Manitowoc Foodservice, Inc. | ||
Entity Central Index Key | 1,650,962 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,417.2 | ||
Entity Common Stock, Shares Outstanding | 138,661,654 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 378.7 | $ 384 | $ 368.4 | $ 325.5 | $ 391.7 | $ 425.3 | $ 407.7 | $ 345.4 | $ 1,456.6 | $ 1,570.1 | $ 1,581.3 |
Cost of sales | 923.8 | 1,068.4 | 1,073.3 | ||||||||
Gross profit | $ 138.5 | $ 142 | $ 134.7 | $ 117.6 | $ 132.9 | $ 135.3 | $ 126.9 | $ 106.6 | 532.8 | 501.7 | 508 |
Costs and Expenses [Abstract] | |||||||||||
Selling, general and administrative expenses | 290.1 | 291.6 | 299.6 | ||||||||
Amortization expense | 31.2 | 31.4 | 31.8 | ||||||||
Separation expense | 6.5 | 5.2 | 0.4 | ||||||||
Restructuring expense | 2.5 | 4.6 | 2.6 | ||||||||
Asset impairment expense | 3.3 | 9 | 1.1 | ||||||||
Earnings from operations | 199.2 | 159.9 | 172.5 | ||||||||
Interest expense | 85.2 | 1.4 | 1.3 | ||||||||
Interest expense (income) on notes with MTW — net | 0.1 | (15.8) | (16.6) | ||||||||
Other expense (income) — net | 9.1 | (22.1) | 2.1 | ||||||||
Earnings before income taxes | 104.8 | 196.4 | 185.7 | ||||||||
Income taxes | 25.3 | 39.3 | 25.9 | ||||||||
Net earnings | $ 79.5 | $ 157.1 | $ 159.8 | ||||||||
Per share data | |||||||||||
Basic earnings per common share (in dollars per share) | $ 0.15 | $ 0.18 | $ 0.11 | $ 0.13 | $ 0.48 | $ 0.30 | $ 0.27 | $ 0.10 | $ 0.58 | $ 1.15 | $ 1.17 |
Diluted earnings per common share (in dollars per share) | $ 0.57 | $ 1.15 | $ 1.17 | ||||||||
Basic weighted average common shares outstanding (in shares) | 137,906,284 | 137,016,712 | 137,016,712 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 139,714,120 | 137,016,712 | 137,016,712 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 79.5 | $ 157.1 | $ 159.8 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (1.9) | (25.2) | (16.9) |
Unrealized gain (loss) on derivatives, net of income tax (expense) benefit of ($1.0), $0.5 and $0.2, respectively | 2.6 | (0.8) | (0.6) |
Employee pension and post-retirement benefits, net of income tax (expense) benefit of ($0.6), $0.0 and $0.3, respectively | 0.4 | 2.2 | (4.4) |
Total other comprehensive income (loss), net of tax | 1.1 | (23.8) | (21.9) |
Comprehensive income | $ 80.6 | $ 133.3 | $ 137.9 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized (loss) income on derivatives, net of income taxes of | $ 2.6 | $ (0.8) | $ (0.6) |
Employee pension and post retirement benefits, income taxes | $ (0.4) | $ (2.2) | $ 4.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 53.8 | $ 32 |
Restricted cash | 6.4 | 0.6 |
Accounts receivable, less allowances of $5.3 and $4.0, respectively | 81.7 | 63.8 |
Inventories — net | 145.6 | 145.9 |
Prepaids and other current assets | 13.9 | 10.3 |
Current assets held for sale | 6.8 | 0 |
Total current assets | 308.2 | 252.6 |
Property, plant and equipment — net | 109.1 | 116.4 |
Goodwill | 845.3 | 845.8 |
Other intangible assets — net | 484.4 | 519.6 |
Other non-current assets | 22.1 | 15.9 |
Long-term assets held for sale | 0 | 3.7 |
Total assets | 1,769.1 | 1,754 |
Current Liabilities: | ||
Accounts payable | 108.4 | 121.7 |
Accrued expenses and other liabilities | 174.5 | 164.9 |
Current portion of capital leases | 1.6 | 0.4 |
Product warranties | 27.9 | 34.3 |
Current liabilities held for sale | 0.7 | 0 |
Total current liabilities | 313.1 | 321.3 |
Non-Current Liabilities: | ||
Long-term debt and capital leases | 1,278.7 | 2.3 |
Deferred income taxes | 137.8 | 167.9 |
Pension and postretirement health obligations | 47.4 | 33.3 |
Other long-term liabilities | 35.6 | 20.5 |
Total non-current liabilities | 1,499.5 | 224 |
Commitments and contingencies (note 17) | ||
Total (deficit) equity: | ||
Common stock (300,000,000 shares and 0 shares authorized, 138,601,327 shares and 0 shares issued and 138,562,016 shares and 0 shares outstanding, respectively) | 1.4 | 0 |
Additional paid-in capital (deficit) | (72) | 0 |
Retained earnings | 70.5 | 0 |
Net parent company investment | 0 | 1,253.2 |
Accumulated other comprehensive loss | (43.4) | (44.5) |
Total (deficit) equity | (43.5) | 1,208.7 |
Total liabilities and equity | $ 1,769.1 | $ 1,754 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowances (in dollars) | $ 4.2 | $ 4.2 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 138,601,327 | 137,016,072 |
Common stock, shares outstanding | 138,562,016 | 137,016,072 |
Treasury stock, shares | 39,311 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net earnings | $ 79.5 | $ 157.1 | $ 159.8 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Depreciation | 17.3 | 19.6 | 21.2 |
Amortization expense | 31.2 | 31.4 | 31.8 |
Amortization of deferred financing fees | 4.8 | 0 | 0 |
Deferred income taxes | (9.9) | (30) | (17.5) |
Stock-based compensation expense | 6.3 | 2.3 | 2.4 |
Asset impairment expense | 3.3 | 9 | 1.1 |
Loss on sale of property, plant and equipment | 0.4 | 0.9 | 0.3 |
Gain on acquisitions and divestitures | 0 | (14.8) | 0 |
Other | 0 | 0 | 1.1 |
Changes in operating assets and liabilities, excluding the effects of business acquisitions or dispositions: | |||
Accounts receivable | (8.3) | (7.5) | (0.3) |
Inventories | (3.6) | 4.7 | (23.8) |
Other assets | (11.5) | 1.4 | (1.3) |
Accounts payable | (11.1) | (25.6) | 21.2 |
Other current and long-term liabilities | 23.6 | (5.5) | 4.2 |
Net cash provided by operating activities | 122 | 143 | 200.2 |
Cash flows from investing activities | |||
Capital expenditures | (16) | (13.2) | (25.3) |
Changes in restricted cash | (6) | (0.6) | 0 |
Business acquisitions, net of cash acquired | 0 | (5.3) | 0 |
Proceeds from dispositions | 1.6 | 78.2 | 0 |
Net cash (used for) provided by investing activities | (20.4) | 59.1 | (25.3) |
Cash flows from financing activities | |||
Proceeds from long-term debt and capital leases | 1,501.1 | 0.5 | 3.1 |
Repayments on long-term debt and capital leases | (186.8) | (0.7) | (3.4) |
Debt issuance costs | (41.3) | 0 | 0 |
Dividend paid to MTW | (1,362) | 0 | 0 |
Net transactions with MTW | (6.1) | (182.9) | (166.7) |
Exercises of stock options | 16.2 | 0 | 0 |
Net cash used for financing activities | (78.9) | (183.1) | (167) |
Effect of exchange rate changes on cash | (0.9) | (3.5) | (1) |
Net increase in cash and cash equivalents | 21.8 | 15.5 | 6.9 |
Balance at beginning of year | 32 | 16.5 | 9.6 |
Balance at end of year | 53.8 | 32 | 16.5 |
Supplemental disclosures of cash flow information: | |||
Net cash paid for income taxes | 42.1 | 13.2 | 13.2 |
Cash paid for interest | $ 69.6 | $ 0 | $ 0 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital (Deficit) | Retained Earnings | Net Parent Company Investment | Accumulated Other Comprehensive (Loss) Income |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding | 0 | |||||
Beginning balance at Dec. 31, 2013 | $ 1,268.4 | $ 0 | $ 0 | $ 0 | $ 1,267.2 | $ 1.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 159.8 | |||||
Other comprehensive income | (21.9) | (21.9) | ||||
Net decrease in parent company investment | (154.9) | (154.9) | ||||
Ending balance at Dec. 31, 2014 | 1,251.4 | $ 0 | 0 | 0 | 1,272.1 | (20.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding | 0 | |||||
Net earnings | 157.1 | |||||
Other comprehensive income | (23.8) | (23.8) | ||||
Net decrease in parent company investment | (176) | (176) | ||||
Ending balance at Dec. 31, 2015 | $ 1,208.7 | $ 0 | 0 | 0 | 1,253.2 | (44.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding | 137,016,072 | 0 | ||||
Net earnings | $ 79.5 | 64.2 | 15.3 | |||
Other comprehensive income | 1.1 | 1.1 | ||||
Net decrease in parent company investment | (1,362) | (1,362) | ||||
Separation related adjustments | (1) | (1) | ||||
Reclassification of net investment to additional paid-in capital | (94.5) | 94.5 | ||||
Issuance of common stock at Spin-Off (in shares) | 137,016,712 | |||||
Issuance of common stock at Spin-Off | $ 1.4 | (1.4) | ||||
Issuance of common stock, equity-based compensation plans (in shares) | 1,584,615 | |||||
Issuance of common stock, equity-based compensation plans | 16.2 | 16.2 | ||||
Stock-based compensation expense | 6.3 | 6.3 | ||||
Adjustments in connection with the Spin-Off | 7.7 | 1.4 | 6.3 | |||
Ending balance at Dec. 31, 2016 | $ (43.5) | $ 1.4 | $ (72) | $ 70.5 | $ 0 | $ (43.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares outstanding | 138,562,016 | 138,601,327 |
Description of the Business and
Description of the Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | Description of the Business and Basis of Presentation The Spin-Off On January 29, 2015, The Manitowoc Company, Inc. ("MTW") announced plans to create two independent public companies to separately operate its two businesses: its Crane business and its Foodservice business. To effect the separation, MTW first undertook an internal reorganization, following which MTW held the Crane business, and Manitowoc Foodservice, Inc. ("MFS") held the Foodservice business. Then on March 4, 2016, MTW distributed all the MFS common stock to MTW's shareholders on a pro rata basis, and MFS became an independent publicly traded company (the "Distribution"). In this Annual Report on Form 10-K, "Spin-Off" refers to both the above described internal reorganization and the Distribution, collectively. In these consolidated financial statements, unless the context otherwise requires: • "MFS" and the "Company" refer to Manitowoc Foodservice, Inc. and its consolidated subsidiaries, after giving effect to the internal reorganization and the Distribution, or, in the case of information as of dates or for periods prior to its separation from MTW, the combined entities of the Foodservice business, and certain other assets and liabilities that were historically held at the MTW corporate level, but were specifically identifiable and attributable to the Foodservice business; and • "MTW" refers to The Manitowoc Company, Inc. and its consolidated subsidiaries, other than, for all periods following the Spin-Off, MFS. Description of the Business The Company is one of the world’s leading commercial foodservice equipment companies. It designs and manufactures a complementary portfolio of hot and cold foodservice equipment products integrated under one operating company and is supported by a growing aftermarket parts and repair service business. Its capabilities span refrigeration, ice-making, cooking, holding, food-preparation and beverage-dispensing technologies, which allow it to equip entire commercial kitchens and serve the world’s growing demand for food prepared away from home. The Company's suite of products is used by commercial and institutional foodservice operators including full-service restaurants, quick-service restaurant chains, hotels, caterers, supermarkets, convenience stores, business and industry, hospitals, schools and other institutions. The Company's products and aftermarket parts and service support are recognized by its customers and channel partners for their quality, reliability and durability that enable profitable growth for MFS end customers by improving their menus, enhancing operations and reducing costs. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany balances and transactions between the Company and its affiliates have been eliminated. Interest income and expense related to the notes with MTW have been reflected on a net basis within the accompanying consolidated statement of operations as described in Note 24, "Net Parent Company Investment and Related Party Transactions." During the periods presented prior to the Spin-Off on March 4, 2016, the Company's financial statements were prepared on a combined standalone basis derived from the consolidated financial statements and accounting records of MTW. The Company functioned as part of the larger group of companies controlled by MTW. Accordingly, MTW performed certain corporate overhead functions for the Company. Therefore, certain costs related to the Company have been allocated from MTW for the period of January 1, 2016 up to the Spin-Off on March 4, 2016 and for the entirety of the years ended December 31, 2015 and 2014 . These allocated costs are primarily related to: 1) corporate officers, 2) employee benefits and compensation, 3) share-based compensation and 4) certain administrative functions, which are not provided at the business level including, but not limited to, finance, treasury, tax, audit, legal, information technology, human resources and investor relations. Where possible, these costs were allocated based on direct usage, with the remainder allocated on a basis of revenue, headcount or other measures the Company determined to be reasonable. As the separate legal entities that comprised the Company were not historically held by a single legal entity, "Net parent company investment" in the accompanying consolidated financial statements is shown in lieu of stockholder’s equity. Balances between MFS and MTW (including its Crane business) that were not historically settled in cash are included in "Net parent company investment," which represents MTW's interest in the recorded assets of MFS and the cumulative investment by MTW in MFS through the Spin-Off, inclusive of operating results. Management of the Company believes the assumptions underlying the accompanying consolidated financial statements, including the assumptions regarding the allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by the Company during the periods presented. Nevertheless, the accompanying consolidated financial statements may not be indicative of the Company's future performance, and they do not necessarily include all of the actual expenses that would have been incurred by the Company and may not reflect the results of operations, financial position and cash flows had the Company been a standalone company during the entirety of the periods presented prior to the Spin-Off. Prior to the Spin-Off, cash was managed centrally and flowed through centralized bank accounts controlled and maintained by MTW. Accordingly, cash and cash equivalents held by MTW at the corporate level were not attributable to MFS for any of the periods presented prior to the Spin-Off. Only cash amounts specifically attributable to MFS are reflected in the accompanying consolidated financial statements. Transfers of cash, both to and from MTW's centralized cash management system, are reflected as a component of "Net parent company investment" in the accompanying consolidated balance sheets and as a financing activity in the accompanying consolidated statements of cash flows. Additionally, none of MTW’s debt has been allocated to the consolidated financial statements as MFS has no legal obligation for any of the debt agreements. MFS received or provided funding as part of MTW's centralized treasury program. Income tax expense in the accompanying consolidated statement of operations for the periods prior to the Spin-Off is computed on a separate return basis, as if MFS was operating as a separate consolidated group and filed separate tax returns in the jurisdictions in which it operates. As a result of potential changes to our business model and potential past and future tax planning, income tax expense included in the accompanying consolidated financial statements may not be indicative of MFS' future expected tax rate. In addition, cash tax payments and items of current and deferred taxes may not be reflective of MFS' actual tax balances prior to or subsequent to the Spin-Off. MFS, as a stand-alone entity commencing with the Spin-Off, files US federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of US federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, whereas state tax returns for certain separate filing MFS entities were filed by MFS for periods prior to and after the Spin-Off. Cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable. Prior to the Spin-Off, the operations of MFS were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on a separate return bases in the accompanying consolidated financial statements. As a result, the effective tax rate and deferred income taxes of MFS for 2016 may differ from those in historical periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Significant Accounting Policies Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Cash, Cash Equivalents, and Restricted Cash All short-term investments purchased with an original maturity of three months or less are considered cash equivalents. Inventories Inventories are valued at the lower of cost or market value. Approximately 91.2% and 90.3% of the Company's inventories at December 31, 2016 and 2015 , respectively, were valued using the first-in, first-out ("FIFO") method. The remaining inventories were valued using the last-in, first-out ("LIFO") method. If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $3.5 million and $3.4 million at December 31, 2016 and 2015 , respectively. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. Goodwill and Other Intangible Assets The Company accounts for its goodwill and other intangible assets under the guidance of Accounting Standards Codification ("ASC") Subtopic 350-10, "Intangibles — Goodwill and Other." Under ASC Subtopic 350-10, goodwill is not amortized, but it is tested for impairment annually, or more frequently, as events dictate. See additional discussion of impairment testing under "Impairment of Long-Lived Assets," below. The Company's other intangible assets with indefinite lives, including trademarks, are not amortized, but are also tested for impairment annually, or more frequently, as events dictate. The Company's other intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets are amortized straight-line over the following estimated useful lives: Useful lives Patents 10-20 years Engineering drawings 15 years Customer relationships 10-20 years Property, Plant and Equipment Property, plant and equipment are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. Property, plant and equipment are depreciated over the following estimated useful lives: Years Building and improvements 2 - 40 Machinery, equipment and tooling 2 - 20 Furniture and fixtures 3 - 15 Computer hardware and software 2 - 7 Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC Subtopic 360-10-5. ASC Subtopic 360-10-5 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and to evaluate the asset group against the sum of the undiscounted future cash flows. For property, plant and equipment and other long-lived assets, other than goodwill and other indefinite lived intangible assets, the Company performs undiscounted operating cash flow analyses to determine impairments. If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the fair value to the net book value of the assets. Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell. Each year, as of June 30, the Company tests for impairment of goodwill according to a two-step approach. In the first step, the Company estimates the fair values of its reporting units using the present value of future cash flows approach. If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit used in the first step less the fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair market value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill. In addition, goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. For other indefinite lived intangible assets, the impairment test consists of a comparison of the fair value of the intangible assets to their carrying amount. See Note 9, "Goodwill and Other Intangible Assets," for further details on the Company's impairment assessments. Warranties Estimated warranty costs are recorded in cost of sales at the time of sale of the products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products. These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience. Environmental Liabilities The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Such accruals are adjusted as information develops or circumstances change. Product Liabilities The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company's best judgment and the advice of legal counsel. These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the case. Second, the Company determines the amount of additional reserve required to cover incurred but not reported product liability obligations and to account for possible adverse development of the established case reserves. This analysis is performed twice annually. Foreign Currency Translation The financial statements of the Company's non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items. Resulting translation adjustments are recorded to "Accumulated Other Comprehensive Income" ("AOCI") as a component of equity. Derivative Financial Instruments and Hedging Activities The Company entered into derivative instruments to hedge foreign exchange and commodity exposure associated with aluminum, copper, steel and natural gas prices. The Company has adopted written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited. The Company uses financial instruments to manage the market risk from changes in foreign exchange rates and commodities. The Company follows the guidance in accordance with ASC Subtopic 815-10, "Derivatives and Hedging." The fair values of all derivatives are recorded in the accompanying consolidated balance sheets. The change in a derivative’s fair value is recorded each period in current earnings or AOCI depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction. During the years ended December 31, 2016 , 2015 and 2014 , minimal amounts were recognized in earnings due to ineffectiveness of certain commodity hedges. The amount reported as derivative instrument fair market value adjustment in the AOCI account within the accompanying consolidated statements of comprehensive income (loss) represents the net gain (loss) on foreign currency exchange contracts and commodity contracts designated as cash flow hedges, net of income taxes. Stock-Based Compensation MFS employees have historically participated in MTW's stock-based compensation plans for the periods prior to the Spin-Off. Stock-based compensation expense has been allocated to the MFS business based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, the MFS business continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the MFS employees. Accounting guidance requires that the cost resulting from all stock-based payment transactions be recognized in the financial statements. Guidance as establishes fair value as the measurement objective in accounting for stock-based payment arrangements and requires all companies to apply a fair-value-based measurement method in accounting generally for all stock-based payment transactions with employees. Stock-based compensation expense related to MFS employees of $6.3 million , $2.3 million and $2.4 million has been recorded in the accompanying consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014 , respectively. Refer to Note 16, "Stock-Based Compensation," for additional discussion regarding details of the Company's stock-based compensation plan. Revenue Recognition Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered. Shipping and handling fees are reflected in net sales and shipping and handling costs are reflected in cost of sales in the accompanying consolidated statements of operations. Research and Development Research and development costs are charged to expense as incurred and amounted to $35.2 million , $33.2 million and $31.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Research and development costs include salaries, materials, contractor fees and other administrative costs. Income Taxes MFS, as a stand-alone entity commencing with the Spin-Off, files U.S. federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of U.S. federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, and such settlements were reflected as changes in the “Net parent company investment account” in the accompanying consolidated balance sheets and statements of equity. State tax returns for certain separate filing MFS entities were filed by MFS for periods prior to and after the Spin-Off. Cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable. Prior to the Spin-Off, the operations of MFS were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on separate return bases in the accompanying consolidated financial statements. As a result, the effective tax rate and deferred income taxes of MFS for 2016 may differ from those in historical periods. The Company recognizes deferred tax assets and liabilities for the expected future income tax consequences of events that have been recognized in the accompanying consolidated financial statements. Deferred tax assets and liabilities are determined based on the temporary difference between financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the Company will not realize the benefit of such assets. The Company evaluates its uncertain tax positions as new information becomes available. Tax benefits are recognized to the extent a position is more likely than not to be sustained upon examination by the taxing authority. Comprehensive Income (Loss) Comprehensive income (loss) includes, in addition to net earnings, other items that are reported as direct adjustments to equity. Currently, these items are foreign currency translation adjustments, employee postretirement benefit adjustments and the change in fair value of certain derivative instruments. Concentration of Credit Risk Credit extended to customers through trade accounts receivable potentially subjects MFS to risk. This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas. However, a significant amount of MFS' receivables are with distributors and large companies in the foodservice and beverage industry. MFS currently does not foresee a significant credit risk associated with these individual groups of receivables, but continues to monitor the exposure, if any. Recent Accounting Changes and Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which removes the second step of the annual goodwill impairment test. ASU 2017-04 is effective for fiscal years, and interim periods within those fiscal years, for annual impairment tests beginning after December 15, 2019. Early adoption is permitted in any interim or annual reporting period for impairment tests performed after January 1, 2017 and the amendments in this ASU should be applied prospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," which clarifies the accounting guidance to assist entities in evaluating whether a transaction should be accounted for as acquisitions of assets or businesses. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in certain instances and the amendments in this ASU should be applied prospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which will require an entity to reconcile the changes in restricted cash as part of total cash and cash equivalents in its statements of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in any interim or annual reporting period and the amendments in this ASU should be applied retrospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies the accounting guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in any interim or annual reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, "Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment award transactions. This ASU requires that all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit on the income statement. The excess tax items should be classified with other income tax cash flows as an operating activity. This ASU also allows an entity to account for forfeitures when they occur rather than the current U.S. GAAP practice where an entity makes an entity-wide accounting policy election to estimate the number of awards that are expected to vest. This ASU is effective for the Company on January 1, 2017 and the Company will continue to estimate the number of awards that are expected to vest. The adoption of this ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. ASU 2016-02 requires a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and provides certain practical expedients that companies may elect. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU provides guidance for the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and early adoption is not permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In August 2015, the FASB issued ASU 2015-15, "Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." This ASU clarifies the guidance related to accounting for debt issuance costs related to line-of-credit arrangements. In April 2015, the FASB issued ASU 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. With the issuance of ASU 2015-15, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted ASU 2015-15 and ASU 2015-03 in the first quarter of fiscal year 2016 and its impact is presented in the accompanying consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This ASU changes the guidance on accounting for inventory accounted for on a first-in first-out ("FIFO") basis. Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out ("LIFO") basis. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016 with early application permitted. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU 2015-05, "Intangibles—Goodwill and Other—Internal-use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification ("ASC") Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements or related disclosures. In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 820)—Amendments to the Consolidation Analysis." This ASU amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements or related disclosures. In January 2015, the FASB issued ASU 2015-01, "Income Statement—Extraordinary and Unusual Items." This ASU eliminates from U.S. GAAP the concept of extraordinary items. This ASU is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements or related disclosures. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." This update provides guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and to provide related footnote disclosures. The Company adopted this accounting guidance in the fourth quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements or related disclosures. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." This ASU provides a principles-based approach to revenue recognition to record the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. The revenue standard is effective for the first interim period within fiscal years beginning after December 15, 2017 (as updated by the FASB in August 2015 in ASU 2015-14 and as updated by ASU-2016-20, ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12), and can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application along with additional disclosures. Early adoption is permitted as of the original effective date—the first interim period within fiscal years beginning after December 15, 2016. The Company plans to adopt this standard on January 1, 2018 and is evaluating its customizable contracts, information technology contracts and other customer contracts that may impact its consolidated financial statements and related disclosures. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On October 21, 2015, MFS acquired the remaining 50% of outstanding shares of a joint venture in Thailand. Welbilt Thailand is a leading manufacturer of kitchen equipment in South East Asia. The purchase price, net of cash acquired, was approximately $5.3 million . The gain of $4.9 million recognized on the acquisition was a component of "Other expense (income) — net" in the accompanying consolidated statements of operations for the year ended December 31, 2015. The gain related to the difference between the book value and the fair value of the Company's previously held passive 50% equity interest in the joint venture. Allocation of the purchase price resulted in $1.4 million of goodwill and $4.2 million of intangible assets, which related entirely to the Asia Pacific ("APAC") reportable segment. The results of Welbilt Thailand have been included in the accompanying consolidated financial statements since the date of the acquisition. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On December 7, 2015, the Company announced the completion of the sale of Kysor Panel Systems, a manufacturer of wood frame and high-density rail panel systems for walk-in freezers and coolers for the retail and convenience-store markets, to an affiliate of D Cubed Group LLC. The sale price for the transaction was approximately $85.0 million , with cash proceeds received of approximately $78.0 million . In December 2015, the proceeds from the sale were used to reduce outstanding debt under MTW's then-outstanding credit facility. This divestiture does not qualify for discontinued operations; therefore the results of the business are included in the operating results from continuing operations. During the third quarter of 2014, the Company settled a pension obligation related to a previously disposed entity, which resulted in a $1.1 million loss, net of income tax benefit of $0.6 million , which is reflected in "Other expense (income) — net" in the accompanying consolidated statements of operations for the year ended December 31, 2014. Subsequent Events In January 2017, the Company completed the sale of a certain parts and field service business in Shanghai, China for a net purchase price of $1.1 million , with cash proceeds received of $1.1 million in December 2016. This sale relates entirely to the Company's APAC reportable segment and met the criteria to be classified as held for sale as of December 31, 2016 and thus, the related assets of $2.3 million and liabilities of $0.7 million are presented in "Current assets held for sale" and "Current liabilities held for sale" in the accompanying consolidated balance sheets, respectively. A minimal impairment charge was recognized during the year ended December 31, 2016, which is included in "Asset impairment expense" in the accompanying consolidated statements of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and 2015 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value as of December 31, 2016 (in millions) Level 1 Level 2 Level 3 Total Current assets: Foreign currency exchange contracts $ — $ 0.6 $ — $ 0.6 Commodity contracts — 0.9 — 0.9 Total current assets at fair value — 1.5 — 1.5 Non-current assets: Commodity contracts — 0.2 — 0.2 Total non-current assets at fair value — 0.2 — 0.2 Total assets at fair value $ — $ 1.7 $ — $ 1.7 Current liabilities: Foreign currency exchange contracts $ — $ 1.0 $ — $ 1.0 Commodity contracts — 0.1 — 0.1 Total current liabilities at fair value — 1.1 — 1.1 Total liabilities at fair value $ — $ 1.1 $ — $ 1.1 Fair Value as of December 31, 2015 (in millions) Level 1 Level 2 Level 3 Total Total assets at fair value $ — $ — $ — $ — Current liabilities: Foreign currency exchange contracts $ — $ 0.1 $ — $ 0.1 Commodity contracts — 3.1 — 3.1 Total current liabilities at fair value — 3.2 — 3.2 Non-current liabilities: Commodity contracts — 0.4 — 0.4 Total non-current liabilities at fair value — 0.4 — 0.4 Total liabilities at fair value $ — $ 3.6 $ — $ 3.6 The fair value of the Company's 9.50% Senior Notes due 2024 (the "Senior Notes") and Term Loan B Facility (as defined below) under its Senior Secured Credit Facilities (as defined below) was approximately $496.2 million and $838.4 million as of December 31, 2016, respectively. Neither the Senior Notes nor the Term Loan B Facility existed as of December 31, 2015. See Note 12, "Debt," for a description of the debt instruments and their related carrying values. Aside from the asset impairment charges discussed in Note 19, "Restructuring," no other non-recurring fair value adjustments were recorded during the years ended December 31, 2016 and 2015. ASC Subtopic 820-10, "Fair Value Measurement," defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Subtopic 820-10 classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability The Company endeavors to utilize the best available information in measuring fair value. The Company estimates the fair value of its Senior Notes and Term Loan B Facility based on quoted market prices of the instruments. Because these markets are typically thinly traded, the assets and liabilities are classified as Level 2 of the fair value hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and deferred purchase price notes on receivables sold (see Note 11, "Accounts Receivable Securitization"), approximate fair value, without being discounted as of December 31, 2016 and 2015 due to the short-term nature of these instruments. As a result of its global operating and financing activities, the Company is exposed to market risks from changes in foreign currency exchange rates and commodity prices, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes these risks through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes, and the Company does not use leveraged derivative financial instruments. The foreign currency exchange and commodity contracts are valued through an independent valuation source which uses an industry standard data provider, with resulting valuations periodically validated through third-party or counterparty quotes. As such, these derivative instruments are classified within Level 2 of the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company's risk management objective is to ensure that business exposures to risks that have been identified and measured and are capable of being controlled are minimized or managed using what it believes to be the most effective and efficient methods to eliminate, reduce or transfer such exposures. Operating decisions consider these associated risks and structure transactions to minimize or manage these risks whenever possible. The use of derivative instruments is consistent with the overall business and risk management objectives of the Company. The Company uses derivative instruments to manage business risk exposures that have been identified through the risk identification and measurement process, provided that they clearly qualify as "hedging" activities as defined in its risk policy. It is the Company's policy to enter into derivative transactions only to the extent true exposures exist; the Company does not enter into derivative transactions for trading or other speculative purposes. The primary risks the Company manages using derivative instruments are commodity price risk and foreign currency exchange risk. Swap contracts on various commodities are used to manage the price risk associated with forecasted purchases of materials used in the Company's manufacturing process. The Company also enters into various foreign currency derivative instruments to help manage foreign currency risk associated with its projected purchases and sales and foreign currency denominated receivable and payable balances. ASC Subtopic 815-10, "Derivatives and Hedges," requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with ASC Subtopic 815-10, the Company designates commodity swaps and foreign currency exchange contracts as cash flow hedges of forecasted purchases of commodities and currencies. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. In the next twelve months, the Company estimates $0.4 million of unrealized gains , net of tax, related to commodity price and currency rate hedging will be reclassified from other comprehensive income (loss) into earnings. Foreign currency and commodity hedging is generally completed prospectively on a rolling basis for 15 and 36 months, respectively, depending on the type of risk being hedged. As of December 31, 2016 , 2015 and 2014, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions: Units Hedged Commodity 2016 2015 2014 Unit Type Aluminum 1,663 1,215 1,657 MT Cash flow Copper 746 472 820 MT Cash flow Natural gas 56,416 49,396 56,792 MMBtu Cash flow Steel 8,663 11,073 12,634 Short tons Cash flow Units Hedged Currency 2016 2015 2014 Type Canadian Dollar 26,130,000 587,556 7,984,824 Cash flow European Euro 11,261,848 231,810 — Cash flow British Pound 4,191,763 113,115 — Cash flow Mexican Peso 148,200,000 28,504,800 52,674,383 Cash flow Thailand Baht 23,231,639 — — Cash flow Singapore Dollar 4,375,000 — — Cash flow For derivative instruments that are not designated as hedging instruments under ASC Subtopic 815-10, the gains or losses on the derivatives are recognized in current earnings within "Other expense (income) — net" in the accompanying consolidated statements of operations. As of December 31, 2016 , 2015 and 2014, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments: Units Hedged Commodity 2016 2015 2014 Unit Type Aluminum 28 — — MT Cash flow Steel 340 — — Short tons Cash flow Units Hedged Currency 2016 2015 2014 Recognized Location Purpose Canadian Dollar — 1,117,850 2,516 Other expense (income) — net Accounts payable and receivable settlement European Euro 16,000,000 — 2,172,068 Other expense (income) — net Accounts payable and receivable settlement British Pound 8,192,692 — — Other expense (income) — net Accounts payable and receivable settlement Mexican Peso — — 3,151,000 Other expense (income) — net Accounts payable and receivable settlement Swiss Franc 3,150,000 — — Other expense (income) — net Accounts payable and receivable settlement The fair value of outstanding derivative contracts recorded as assets in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows: ASSET DERIVATIVES (in millions) Balance Sheet Location Fair Value 2016 2015 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.6 $ — Commodity contracts Prepaids and other current assets 0.9 — Commodity contracts Other non-current assets 0.2 — Total derivatives designated as hedging instruments $ 1.7 $ — Total asset derivatives $ 1.7 $ — The fair value of outstanding derivative contracts recorded as liabilities in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows: LIABILITY DERIVATIVES (in millions) Balance Sheet Location Fair Value 2016 2015 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.8 $ 0.1 Commodity contracts Accrued expenses and other liabilities 0.1 2.4 Commodity contracts Other long-term liabilities — 0.3 Total derivatives designated as hedging instruments $ 0.9 $ 2.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.2 $ — Commodity contracts Accrued expenses and other liabilities — 0.7 Commodity contracts Other long-term liabilities — 0.1 Total derivatives NOT designated as hedging instruments $ 0.2 $ 0.8 Total liability derivatives $ 1.1 $ 3.6 The effects of derivative instruments on the consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014 for gains or losses initially recognized in "Accumulated other comprehensive loss" ("AOCI") in the accompanying consolidated balance sheets were as follows: Derivatives in cash flow hedging relationships (in millions) Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) Location of gain (loss) reclassified from AOCI into income (effective portion) Amount of gain (loss) reclassified from AOCI into income (effective portion) 2016 2015 2014 2016 2015 2014 Foreign currency exchange contracts $ (0.1 ) $ 0.3 $ (0.1 ) Cost of sales $ — $ (1.4 ) $ (0.9 ) Commodity contracts 2.7 (1.1 ) (0.5 ) Cost of sales (1.5 ) (3.4 ) (0.3 ) Total $ 2.6 $ (0.8 ) $ (0.6 ) $ (1.5 ) $ (4.8 ) $ (1.2 ) Derivatives relationships (in millions) Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) 2016 2015 2014 Commodity contracts $ — $ 0.1 $ 0.1 Cost of sales Total $ — $ 0.1 $ 0.1 Derivatives NOT designated as hedging instruments (in millions) Amount of gain (loss) recognized in income on derivative Location of gain (loss) recognized in income on derivative 2016 2015 2014 Foreign currency exchange contracts $ (0.2 ) $ 0.1 $ — Other expense (income) — net Commodity contracts — short-term 0.8 (0.7 ) — Other expense (income) — net Commodity contracts — long-term — (0.1 ) — Other expense (income) — net Total $ 0.6 $ (0.7 ) $ — |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories at December 31, 2016 and 2015 are summarized as follows: (in millions) 2016 2015 Inventories — gross: Raw materials $ 68.2 $ 70.7 Work-in-process 18.3 18.7 Finished goods 85.1 83.4 Total inventories — gross 171.6 172.8 Excess and obsolete inventory reserve (22.5 ) (23.5 ) Net inventories at FIFO cost 149.1 149.3 Excess of FIFO costs over LIFO value (3.5 ) (3.4 ) Inventories — net $ 145.6 $ 145.9 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of property, plant and equipment at December 31, 2016 and 2015 are summarized as follows: (in millions) 2016 2015 Land $ 7.3 $ 7.3 Building and improvements 91.3 94.3 Machinery, equipment and tooling 215.1 216.0 Furniture and fixtures 5.8 6.2 Computer hardware and software 52.9 51.2 Construction in progress 11.2 9.8 Total cost 383.6 384.8 Less accumulated depreciation (274.5 ) (268.4 ) Property, plant and equipment — net $ 109.1 $ 116.4 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company has three reportable segments: Americas, Europe, Middle East and Africa ("EMEA") and APAC. The Americas segment includes the U.S., Canada and Latin America. The EMEA segment is made up of markets in Europe, Middle East and Africa, including Russia and the Commonwealth of Independent States. The APAC segment is principally comprised of markets in China, India, Singapore, Malaysia, Thailand, Philippines, Indonesia, Japan, South Korea, Australia and New Zealand. The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2016 , 2015 and 2014 are as follows: (in millions) Americas EMEA APAC Total Gross balance as of December 31, 2014 $ 1,172.7 $ 208.4 $ 7.4 $ 1,388.5 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2014 $ 860.5 $ 4.9 $ 7.4 $ 872.8 Foreign currency impact — (0.1 ) (0.4 ) (0.5 ) Impact of acquisitions and divestitures (27.9 ) — 1.4 (26.5 ) Gross balance as of December 31, 2015 $ 1,144.8 $ 208.3 $ 8.4 $ 1,361.5 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2015 $ 832.6 $ 4.8 $ 8.4 $ 845.8 Foreign currency impact — (0.1 ) (0.4 ) (0.5 ) Gross balance as of December 31, 2016 $ 1,144.8 $ 208.2 $ 8.0 $ 1,361.0 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2016 $ 832.6 $ 4.7 $ 8.0 $ 845.3 The Company accounts for goodwill and other intangible assets under the guidance of ASC Topic 350, "Intangibles - Goodwill and Other." The Company performs an annual impairment test or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company tests its reporting units and indefinite-lived intangible assets using a fair-value method based on the present value of future cash flows, which involves management's judgments and assumptions about the amounts of those cash flows and the discount rates used. The estimated fair value is then compared with the carrying amount of the reporting unit, including recorded goodwill, or indefinite-lived intangible asset. The intangible asset is then subject to risk of write-down to the extent that the carrying amount exceeds the estimated fair value. As of June 30, 2016 and 2015, the Company performed its annual impairment tests for its reporting units, which were Americas, EMEA, and APAC, as well as its indefinite-lived intangible assets, and based on those results, the fair value of each of the Company's reporting units exceeded their respective carrying values and no impairment was indicated. The gross carrying amount and accumulated amortization of the Company's intangible assets other than goodwill are as follows as of December 31, 2016 and 2015 : 2016 2015 (in millions) Gross Accumulated Net Gross Accumulated Net Trademarks and tradenames $ 172.4 $ — $ 172.4 $ 175.1 $ — $ 175.1 Customer relationships 415.2 (171.4 ) 243.8 415.2 (150.4 ) 264.8 Patents 1.6 (1.6 ) — 1.7 (1.6 ) 0.1 Other intangibles 140.7 (72.5 ) 68.2 143.2 (63.6 ) 79.6 Total $ 729.9 $ (245.5 ) $ 484.4 $ 735.2 $ (215.6 ) $ 519.6 Amortization expense for the years ended December 31, 2016 , 2015 and 2014 was $31.2 million , $31.4 million and $31.8 million , respectively. As of December 31, 2016, the estimated future amortization of intangible assets, other than goodwill, excluding the impact of any future acquisitions or divestitures is as follows: (in millions) Year ending December 31: 2017 $ 31.2 2018 31.2 2019 30.9 2020 30.7 2021 30.7 Thereafter 157.3 $ 312.0 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses and Other Liabilities | Accounts Payable and Accrued Expenses and Other Liabilities Accounts payable and accrued expenses and other liabilities at December 31, 2016 and 2015 are summarized as follows: (in millions) 2016 2015 Accounts payable: Trade accounts payable $ 108.4 $ 121.7 Total accounts payable $ 108.4 $ 121.7 Accrued expenses and other liabilities: Interest payable $ 15.7 $ — Income taxes payable 2.5 7.3 Employee related expenses 29.8 24.5 Restructuring expenses 3.3 16.8 Profit sharing and incentives 14.2 3.9 Accrued rebates 56.0 49.9 Deferred revenue - current 4.4 3.8 Dividend payable to MTW — 10.2 Customer advances 7.4 2.9 Product liability 2.3 2.6 Miscellaneous accrued expenses 38.9 43.0 Total accrued expenses and other liabilities $ 174.5 $ 164.9 |
Accounts Receivable Securitizat
Accounts Receivable Securitization | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Securitization | Accounts Receivable Securitization Prior to the Spin-Off, MFS sold accounts receivable through an accounts receivable securitization facility, ("the Prior Securitization Program"), comprised of two funding entities: Manitowoc Funding, LLC ("U.S. Seller") and Manitowoc Cayman Islands Funding Ltd. ("Cayman Seller"). The U.S. Seller historically serviced domestic entities of both the Foodservice and Crane segments of MTW and remitted all funds received directly to MTW. The Cayman Seller historically serviced solely MFS foreign entities and remitted all funds to MFS entities. The U.S. Seller remained with MTW subsequent to the Spin-Off, while the Cayman Seller was transferred to MFS subsequent to the Spin-Off. As the U.S. Seller is not directly attributable to MFS, only the receivables which were transferred to the U.S. Seller but not sold are reflected in MFS' accompanying consolidated balance sheets. A portion of the U.S. Seller's historical expenses related to bond administration fees and settlement fees was allocated to MFS. As the Cayman Seller is directly attributable to MFS, the assets, liabilities, income and expenses of the Cayman Seller are included in MFS' accompanying consolidated statements of operations and balance sheets. MFS' cost of funds under the facility used a London interbank offered rate ("LIBOR") index rate plus a 1.25% fixed spread. On March 3, 2016, MFS entered into a new $110.0 million accounts receivable securitization program (the "2016 Securitization Facility") among the Cayman Seller, as seller, MFS, Garland Commercial Ranges Limited, Convotherm Elektrogeräte GmbH, Manitowoc Deutschland GmbH, Manitowoc Foodservice UK Limited, Manitowoc Foodservice Asia Pacific Private Limited and the other persons who may be from time to time, a party thereto, as servicers, with Wells Fargo Bank, National Association, as purchaser and agent, whereby MFS will sell certain of its domestic trade accounts receivable and certain of its non-U.S. trade accounts receivable to a wholly-owned, bankruptcy-remote, foreign special purpose entity, which in turn, will sell, convey, transfer and assign to a third-party financial institution (the "Purchaser"), all of the rights, title and interest in and to its pool of receivables. The Purchaser will receive ownership of the pool of receivables. MFS, along with certain of its subsidiaries, act as servicers of the receivables and as such administer, collect and otherwise enforce the receivables. The servicers will be compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. As servicers, they will initially receive payments made by obligors on the receivables but will be required to remit those payments in accordance with a receivables purchase agreement. The Purchaser will have no recourse for uncollectible receivables. The 2016 Securitization Facility also contains customary affirmative and negative covenants. Among other restrictions, these covenants require the Company to meet specified financial tests, which include a Consolidated Interest Coverage Ratio and a Consolidated Total Leverage Ratio that are the same as the covenant ratios required under the 2016 Credit Agreement as described in Note 12, "Debt." Due to a short average collection cycle of less than 60 days for such accounts receivable as well as MFS' collection history, the fair value of MFS' deferred purchase price notes approximated book value. The fair value of the deferred purchase price notes recorded at December 31, 2016 and 2015 was $60.0 million and $48.4 million , respectively, and is included in "Accounts receivable, less allowances" in the accompanying consolidated balance sheets. Trade accounts receivables sold to the Purchaser and being serviced by the Company totaled $96.7 million and $100.9 million at December 31, 2016 and 2015, respectively. Transactions under the 2016 Securitization Facility and the Prior Securitization Program were accounted for as sales in accordance with ASC Topic 860, "Transfers and Servicing." Sales of trade receivables to the Purchaser are reflected as a reduction of accounts receivable in the accompanying consolidated balance sheets and the proceeds received, including collections on the deferred purchase price notes, are included in cash flows from operating activities in the accompanying consolidated statements of cash flows. The Company deems the interest rate risk related to the deferred purchase price notes to be de minimis, primarily due to the short average collection cycle of the related receivables (i.e., 60 days) as noted above. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Secured Credit Facilities On March 3, 2016, the Company entered into a credit agreement (the "2016 Credit Agreement") for a new senior secured revolving credit facility in an aggregate principal amount of $225.0 million (the "Revolving Facility") and a senior secured Term Loan B facility in an aggregate principal amount of $975.0 million (the "Term Loan B Facility" and, together with the Revolving Facility, the "Senior Secured Credit Facilities") with JPMorgan Chase Bank, N.A, as administrative agent and collateral agent, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., and Citigroup Global Markets Inc., on behalf of certain of its affiliates, as joint lead arrangers and joint bookrunners, and certain lenders, as lenders. The Revolving Facility includes (i) a $20.0 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $40.0 million sublimit for swingline loans on customary terms. The Company entered into security and other agreements relating to the 2016 Credit Agreement. Borrowings under the Senior Secured Credit Facilities bear interest at a rate per annum equal to, at the option of MFS, (i) LIBOR plus the applicable margin of 4.75% for term loans subject to a 1.00% LIBOR floor and 1.50% - 2.75% for revolving loans, based on consolidated total leverage, or (ii) an alternate base rate plus the applicable margin, which will be 1.00% lower than for LIBOR loans. The 2016 Credit Agreement contains financial covenants including (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) Consolidated EBITDA, as defined in the 2016 Credit Agreement, to (ii) Consolidated Cash Interest Expense, and (b) a Consolidated Total Leverage Ratio, which measures the ratio of (i) Consolidated Indebtedness to (ii) Consolidated EBITDA for the most recent four fiscal quarters. The current levels of the financial ratio covenants under the Senior Secured Credit Facilities and the Company's actual ratios for each quarter ended during 2016 are set forth below: Fiscal Quarter Ending Consolidated Total Leverage Ratio Level (less than) Actual Consolidated Total Leverage Ratio Consolidated Interest Coverage Ratio Level (greater than) Actual Consolidated Interest Coverage Ratio March 31, 2016 6.25:1.00 5.49:1.00 2.00:1.00 5.91:1.00 June 30, 2016 6.25:1.00 5.52:1.00 2.00:1.00 3.25:1.00 September 30, 2016 6.00:1.00 5.29:1.00 2.25:1.00 3.17:1.00 December 31, 2016 5.75:1.00 5.18:1.00 2.25:1.00 3.13:1.00 Obligations of the Company under the Senior Secured Credit Facilities are jointly and severally guaranteed by certain of its existing and future direct and indirectly wholly-owned U.S. subsidiaries (but excluding (i) unrestricted subsidiaries, (ii) immaterial subsidiaries, and (iii) special purpose securitization vehicles). There is a first priority perfected lien on substantially all of the assets and property of the Company and guarantors and proceeds therefrom excluding certain excluded assets. The liens securing the obligations of the Company under the Senior Secured Credit Facilities are pari passu. Senior Notes On February 18, 2016, the Company issued 9.50% Senior Notes due 2024 in an aggregate principal amount of $425.0 million (the "Senior Notes") under an indenture with Wells Fargo Bank, National Association, as trustee (the "Trustee"). The Senior Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by each of the Company's domestic restricted subsidiaries that is a borrower or guarantor under the Senior Secured Credit Facilities. The Senior Notes and the subsidiary guarantees are unsecured, senior obligations. The Senior Notes were initially sold to qualified institutional buyers pursuant to Rule 144A (and outside the United States in reliance on Regulation S) under the Securities Act of 1933, as amended (the "Securities Act"). In September 2016, the Company completed an exchange offer pursuant to which all of the initial Senior Notes were exchanged for new Senior Notes, the issuance of which was registered under the Securities Act. The Senior Notes are redeemable, at the Company's option, in whole or in part from time to time, at any time prior to February 15, 2019, at a price equal to 100.0% of the principal amount thereof plus a "make-whole" premium and accrued but unpaid interest to the date of redemption. In addition, the Company may redeem the Senior Notes at its option, in whole or in part, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the 12-month period commencing on February 15 of the years set forth below: Year Percentage 2019 107.1 % 2020 104.8 % 2021 102.4 % 2022 and thereafter 100.0 % The Company must generally offer to repurchase all of the outstanding Senior Notes upon the occurrence of certain specific change of control events at a purchase price equal to 101.0% of the principal amount of Senior Notes purchased plus accrued and unpaid interest to the date of purchase. The indenture provides for customary events of default. Generally, if an event of default occurs (subject to certain exceptions), the Trustee or the holders of at least 25.0% in aggregate principal amount of the then-outstanding Senior Notes may declare all the Senior Notes to be due and payable immediately. Outstanding debt at December 31, 2016 and 2015 is summarized as follows: (in millions) 2016 2015 Revolving credit facility $ 63.5 $ — Term Loan B 825.0 — Senior Notes due 2024 425.0 — Other 3.3 2.7 Total debt and capital leases, including current portion 1,316.8 2.7 Less current portion of capital leases (1.6 ) (0.4 ) Less unamortized debt issuance costs (36.5 ) — Total long-term debt and capital leases $ 1,278.7 $ 2.3 Maturities of debt, excluding capital leases, are as follows as of December 31, 2016: (in millions) Year ending December 31: 2017 $ — 2018 — 2019 — 2020 — 2021 63.5 Thereafter 1,250.0 $ 1,313.5 As of December 31, 2016 , the Company had outstanding $3.3 million of other indebtedness that has a weighted-average interest rate for the year ended December 31, 2016 of approximately 4.14% per annum. As of December 31, 2016 , the Company had $63.5 million of borrowings outstanding under the Revolving Facility. During the year ended December 31, 2016 , the highest daily borrowing was $91.0 million and the average borrowing was $46.8 million , while the average interest rate was 2.83% per annum. The interest rate fluctuates based upon LIBOR or a Prime rate plus a spread, which is based upon the Consolidated Total Leverage Ratio of the Company. As of December 31, 2016 , the spreads for LIBOR and Prime borrowings were 2.50% and 1.50% , respectively, given the Company's effective Consolidated Total Leverage Ratio for this period. As of December 31, 2016 , the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the Senior Secured Credit Facilities and the Senior Notes. Based upon management's current plans and outlook, management believes the Company will be able to comply with these covenants during the subsequent 12 months. As of December 31, 2016 , the Company's Consolidated Total Leverage Ratio was 5.18 :1.00, under the maximum ratio of 5.75 :1.00, and its Consolidated Interest Coverage Ratio was 3.13 :1.00, above the minimum ratio of 2.25 :1.00. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes MFS, as a stand-alone entity commencing with the Spin-Off, files U.S. federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of U.S. federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, whereas state tax returns for certain separate filing MFS entities were filed by MFS for periods prior to and after the Spin-Off. Cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable. Prior to the Spin-Off, the operations of MFS were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on separate return bases in the accompanying consolidated financial statements. As a result, the effective tax rate and deferred income taxes of MFS for 2016 may differ from those in historical periods. "Earnings before income taxes" in the accompanying consolidated statements of operations is comprised of the following for the years ended December 31, 2016, 2015 and 2014: (in millions) 2016 2015 2014 Domestic $ 30.5 $ 121.3 $ 121.8 Foreign 74.3 75.1 63.9 Total $ 104.8 $ 196.4 $ 185.7 "Income taxes" in the accompanying consolidated statements of operations is comprised of the following for the years ended December 31, 2016, 2015 and 2014: (in millions) 2016 2015 2014 Current: Federal and state $ 15.7 $ 51.1 $ 28.3 Foreign 19.5 18.2 15.1 Total current expense 35.2 69.3 43.4 Deferred: Federal and state (15.5 ) (27.9 ) (12.0 ) Foreign 5.6 (2.1 ) (5.5 ) Total deferred expense (9.9 ) (30.0 ) (17.5 ) Income taxes $ 25.3 $ 39.3 $ 25.9 A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2016, 2015 and 2014: 2016 2015 2014 Federal income tax at statutory rate 35.0 % 35.0 % 35.0 % State income provision 1.5 1.4 1.4 Manufacturing and research incentives (1.9 ) (1.7 ) (1.7 ) Taxes on foreign income which differ from the U.S. statutory rate (8.1 ) (3.9 ) (2.4 ) Adjustments for unrecognized tax benefits (1.5 ) 0.1 4.3 Adjustments for valuation allowances 2.5 (13.8 ) 21.5 Capital loss generation — — (41.4 ) Business acquisitions and divestitures — 4.1 — Out of period adjustments (2.8 ) — — Other items (0.6 ) (1.2 ) (2.8 ) Effective tax rate 24.1 % 20.0 % 13.9 % During 2016, the Company's effective tax rate was 24.1% , compared to the 2015 effective tax rate of 20.0% . The change was due to nonrecurring 2015 items and a change in the mix of earnings in jurisdictions without a valuation allowance. Included in the 2016 tax provision is a $2.9 million benefit for out-of-period balance sheet adjustments related to the Spin-Off. The Company does not believe these adjustments are material to the accompanying consolidated financial statements for 2016 or its comparative annual or quarterly financial statements. Domestic earnings before income taxes in 2016 represent 29.1% of total earnings and a favorable 8.1% effective tax rate impact for lower tax rates in foreign jurisdictions, whereas 2015 domestic earnings represent 61.8% of total earnings and a 3.9% effective tax rate benefit for lower foreign tax rates The ratio of domestic earnings before income taxes to total earnings in 2014 is 65.6% , with a related effective tax rate benefit of 2.4% for lower foreign tax rates. The 2016, 2015 and 2014 effective tax rates were favorably impacted by income earned in jurisdictions, primarily in Canada and China, where the statutory rates are approximately 25% . The 2015 tax provision benefited by $17.8 million related to the divestiture of Kysor Panel Systems business resulting in a favorable impact to the effective tax rate. The benefit was primarily due to the write-off of $13.8 million of an unamortized deferred tax liability recorded in purchase accounting and use of a capital loss carryforward. In the third quarter of 2014, MFS elected to treat Enodis Holdings Ltd., MFS’ UK holding company subsidiary, as a partnership for U.S. federal income tax purposes. As a result of this change in tax classification, MFS realized a $25.6 million capital loss tax benefit. This transaction resulted in an effective tax rate benefit of 13.9% unique to 2014. Deferred income taxes are provided for the effects of temporary differences between the assets and liabilities recognized for financial reporting and tax reporting. These temporary differences result in taxable or deductible amounts in future years. Significant components of the Company’s non-current deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows: (in millions) 2016 2015 Non-current deferred tax assets (liabilities): Inventories $ 7.2 $ 7.6 Accounts receivable 1.7 1.2 Property, plant and equipment (2.7 ) (2.8 ) Intangible assets (190.8 ) (218.9 ) Deferred employee benefits 19.2 15.7 Product warranty reserves 13.3 14.4 Product liability reserves 0.9 1.0 Loss carryforwards 43.8 84.9 Deferred revenue 1.3 1.1 Other 35.4 16.9 Non-current deferred tax liabilities (70.7 ) (78.9 ) Less valuation allowance (59.9 ) (80.1 ) Net non-current deferred tax liabilities $ (130.6 ) $ (159.0 ) Current and long-term tax assets and liabilities included in the accompanying consolidated balance sheets is comprised of the following as of December 31, 2016 and 2015: (in millions) 2016 2015 Income taxes receivable, included in prepaids and other current assets $ 2.9 $ 2.7 Deferred tax asset, included in other non-current assets $ 7.2 $ 8.9 Income taxes payable, included in accrued expenses and other liabilities $ (2.5 ) $ (7.3 ) Deferred income tax liability $ (137.8 ) $ (167.9 ) Earnings associated with the investments in the Company’s foreign subsidiaries are considered to be indefinitely reinvested outside of the U.S. Therefore, a U.S. provision for income taxes on those earnings or translation adjustments has not been recorded, as permitted by criterion outlined in ASC 740 “Income Taxes.” Determination of any unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that are essentially permanent in duration is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates. As of December 31, 2016, approximately $57.5 million of the $60.2 million of cash and cash equivalents, including restricted cash, on the consolidated balance sheet was held by foreign entities. As of December 31, 2016, the Company has approximately $178.2 million of pre-tax foreign loss carryforwards, which are available to reduce future foreign taxable income. Substantially all of the foreign loss carryforwards are not subject to any time restrictions on their future use. The changes in the loss carryforwards and related valuation allowance from 2015 are primarily related to the group restructuring in the foreign jurisdictions that occurred in conjunction with the Spin-Off. The Company also has approximately $63.3 million of pre-tax U.S. capital loss carryforwards which expire in 2019 and are offset by a valuation allowance and an unrecognized tax benefit. As of December 31, 2016, the Company determined that a total pre-tax valuation allowance of $167.2 million was necessary to reduce foreign net operating loss carryforwards in the United Kingdom, and certain entities in Singapore and India, where it was more likely than not that some portion or all of such deferred tax assets will not be realized. The Company will continue to periodically evaluate its valuation allowance requirements in light of changing facts and circumstances, and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to, or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in the current operations through the Company’s income tax provision, and could have a material effect on operating results. A reconciliation of the Company's unrecognized tax benefits is as follows for the years ended December 31, 2016, 2015 and 2014: (in millions) 2016 2015 2014 Balance at beginning of year $ 16.6 $ 16.6 $ 7.8 Additions based on tax positions related to the current year 1.8 0.2 14.1 Reductions based on settlements with taxing authorities — — (2.8 ) Reductions for equity adjustment (4.3 ) — — Reductions for lapse of statute (1.6 ) (0.2 ) (2.5 ) Balance at end of year $ 12.5 $ 16.6 $ 16.6 The Company recognizes interest and penalties related to tax liabilities as a part of income tax expense. As of December 31, 2016 and 2015, the Company has accrued interest and penalties of $0.1 million and $0.9 million , respectively. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $11.9 million . During the next twelve months, it is reasonably possible that federal, state and foreign tax resolutions could change unrecognized tax benefits and income tax expense in the range of $0.1 million to $0.5 million . MTW has filed tax returns on behalf of MFS in the U.S. and various state and foreign jurisdictions through tax year 2015. MFS' separate state tax returns for the 2012 through 2016 tax years generally remain subject to examination by the U.S. and various state authorities, and tax years 2012 through 2016 remain subject to examination in Canada and Germany. Tax years 2007 through 2016 remain subject to examination in China. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of December 31, 2016, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows. |
Other Expense (Income) - Net
Other Expense (Income) - Net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income) - Net | Other Expense (Income) — Net The components of "Other expense (income) — net" in the accompanying consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014 are summarized as follows: (in millions) 2016 2015 2014 Gain on sale of Kysor Panel Systems (1) $ — $ (9.9 ) $ — Gain on sale of investment property — (5.4 ) — Gain on acquisition of Thailand joint venture (2) — (4.9 ) — Amortization of deferred financing fees 4.8 — — Other (3) 4.3 (1.9 ) 2.1 Other expense (income) — net $ 9.1 $ (22.1 ) $ 2.1 (1) See Note 4, "Divestitures" for further discussion on the sale of Kysor Panel Systems. (2) See Note 3, "Acquisitions" for further discussion on the acquisition of the Thailand joint venture. (3) For the year ended December 31, 2014, $1.1 million of other expense relates to a pension obligation settled by the Company on a previously disposed entity as described in Note 4, "Divestitures." Excluding this item, other expense (income) — net consists primarily of foreign currency gains and losses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss as of December 31, 2016 and 2015 are as follows: (in millions) 2016 2015 Foreign currency translation $ (9.8 ) $ (7.9 ) Derivative instrument fair market value, net of income tax benefit of $0.0 and $0.9 0.8 (1.8 ) Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 and $0.3 (34.4 ) (34.8 ) $ (43.4 ) $ (44.5 ) A summary of the changes in accumulated other comprehensive loss, net of tax, by component for the years ended December 31, 2016 and 2015 are as follows: (in millions) Foreign Currency Translation Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance at December 31, 2013 $ 34.2 $ (0.4 ) $ (32.6 ) $ 1.2 Other comprehensive loss before reclassifications (16.9 ) (1.4 ) (4.8 ) (23.1 ) Amounts reclassified from accumulated other comprehensive income — 0.8 0.4 1.2 Net current period other comprehensive loss (16.9 ) (0.6 ) (4.4 ) (21.9 ) Balance at December 31, 2014 17.3 (1.0 ) (37.0 ) (20.7 ) Other comprehensive (loss) income before reclassifications (25.2 ) (3.8 ) 1.1 (27.9 ) Amounts reclassified from accumulated other comprehensive income — 3.0 1.1 4.1 Net current period other comprehensive (loss) income (25.2 ) (0.8 ) 2.2 (23.8 ) Balance at December 31, 2015 (7.9 ) (1.8 ) (34.8 ) (44.5 ) Other comprehensive (loss) income before reclassifications (1.9 ) 1.7 (1.1 ) (1.3 ) Amounts reclassified from accumulated other comprehensive income — 0.9 1.5 2.4 Net current period other comprehensive (loss) income (1.9 ) 2.6 0.4 1.1 Balance at December 31, 2016 $ (9.8 ) $ 0.8 $ (34.4 ) $ (43.4 ) A reconciliation of the reclassifications out of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2016 is as follows: (in millions) Amount Reclassified from Accumulated Other Comprehensive Income Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gains and losses on cash flow hedges: Foreign currency exchange contracts $ — Cost of sales Commodity contracts (1.5 ) Cost of sales (1.5 ) Total before tax 0.6 Tax expense $ (0.9 ) Net of tax Amortization of pension and postretirement items: Amortization of prior service cost $ — (a) Actuarial losses (2.5 ) (a) (2.5 ) Total before tax 1.0 Tax benefit $ (1.5 ) Net of tax Total reclassifications for the period $ (2.4 ) Net of tax (a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details). A reconciliation of the reclassifications out of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2015 is as follows: (in millions) Amount Reclassified from Accumulated Other Comprehensive Income Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gains and losses on cash flow hedges: Foreign currency exchange contracts $ (1.4 ) Cost of sales Commodity contracts (3.4 ) Cost of sales (4.8 ) Total before tax 1.8 Tax expense $ (3.0 ) Net of tax Amortization of pension and postretirement items: Amortization of prior service cost $ — (a) Actuarial losses (1.1 ) (a) (1.1 ) Total before tax — Tax benefit $ (1.1 ) Net of tax Total reclassifications for the period $ (4.1 ) Net of tax (a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details). |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company's employees historically participated in MTW's stock-based compensation plans prior to the Spin-Off. Stock-based compensation expense relating to awards under MTW's stock-based compensation plans have been allocated to the Company based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, the Company continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the Company's employees. The Company adopted the 2016 Omnibus Incentive Compensation Plan (the "2016 Plan"), under which it makes equity-based and cash-based incentive awards to attract, retain, focus and motivate executives and other selected employees, directors, consultants and advisors. The 2016 Plan is intended to accomplish these objectives by offering participants the opportunity to acquire shares of MFS common stock, receive monetary payments based on the value of such common stock or receive other incentive compensation under the 2016 Plan. In addition, the 2016 Plan permits the issuance of awards ("Replacement Awards") in partial substitution for awards relating to shares of common stock of MTW that were outstanding immediately prior to the Spin-Off. The Company's Compensation Committee administers the 2016 Plan (the "Administrator"). The 2016 Plan authorizes the Administrator to interpret the provisions of the 2016 Plan; prescribe, amend and rescind rules and regulations relating to the 2016 Plan; correct any defect, supply any omission, or reconcile any inconsistency in the 2016 Plan, any award or any agreement covering an award; and make all other determinations necessary or advisable for the administration of the 2016 Plan, in each case in its sole discretion. The 2016 Plan permits the granting of stock options (including incentive stock options), stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, annual cash incentives, long-term cash incentives, dividend equivalent units and other types of stock-based awards. Under the 2016 Plan, 16.2 million shares of MFS common stock have been reserved for issuance, all of which may be issued upon the exercise of incentive stock options. These numbers may be adjusted in the event of certain corporate transactions or other events specified in the 2016 Plan. Following the Spin-Off on March 4, 2016, the Company granted long-term stock-based incentive awards under the 2016 Plan to its executive officers. The long-term stock-based incentive awards consisted of stock options with 4 -year ratable vesting ( 25% of the aggregate grant value of the long-term incentive award) and performance shares ( 75% of the aggregate grant value of the long-term incentive award) that will be earned or forfeited based on performance as measured by cumulative fully diluted earnings per share and return on invested capital over a 3 -year performance period. The details of these awards to the Company's named executive officers will be disclosed as required by applicable SEC regulations in the Company's proxy statement for its annual meeting in 2017. Total stock-based compensation expense was $6.3 million , $2.3 million and $2.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Stock-based compensation expense for the year ended December 31, 2016 includes $1.6 million of additional separation expense recorded as a result of the modification of certain MTW restricted stock unit awards to pay out at target upon consummation of the Spin-Off and equity grants awarded to retain certain employees, which is included in "Separation expense" in the accompanying consolidated statements of operations and the remaining $4.7 million is included in "Selling general and administration expenses" in the accompanying consolidated statements of operations. Stock-based compensation expense recognized in 2015 and 2014 are included in "Selling general and administration expenses" in the accompanying consolidated statements of operations. Stock Options Prior to the Spin-Off, any option granted to directors of MTW were exercisable immediately upon grant and expire ten years subsequent to the grant date. For all outstanding grants made to officers and employees prior to 2011, options become exercisable in 25% increments annually over a four -year period beginning on the second anniversary of the grant date and expire ten years subsequent to the grant date. Beginning in 2011, grants to officers and directors, such options become exercisable in 25% increments annually over a four -year period beginning on the first anniversary of the grant date and expire ten years subsequent to the grant date. During the years ended December 31, 2016, 2015 and 2014, the Company granted options to employees to acquire 0.3 million , 0.4 million and 0.1 million shares of common stock, respectively. Stock-based compensation expense is calculated by estimating the fair value of incentive and non-qualified stock options at the time of grant and is amortized over the stock options’ vesting period. The Company recognized $1.2 million ( $0.7 million after taxes), $0.6 million ( $0.4 million after taxes) and $0.9 million ( $0.5 million after taxes) of stock-based compensation expense associated with stock options during the years ended December 31, 2016 , 2015 and 2014 , respectively. A summary of the Company's stock option activity is as follows (in millions, except weighted average exercise price per share): Shares Weighted Aggregate Options outstanding as of January 1, 2016 1.4 $ 17.70 Granted 0.3 13.56 Exercised (0.1 ) 8.71 Cancelled (0.2 ) 19.41 Options outstanding as of December 31, 2016 1.4 $ 13.69 $ 9.3 Options exercisable as of December 31, 2016 0.8 $ 13.16 $ 6.2 The outstanding stock options at December 31, 2016 have a range of exercise prices from $3.51 to $34.49 per share. The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2016 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price): Range of Exercise Price Outstanding Weighted Weighted Exercisable Weighted $0.00 - $5.00 0.2 2.2 $ 3.51 0.2 $ 3.51 $5.01 - $10.00 0.2 3.1 9.04 0.2 9.04 $10.01 - $15.00 0.6 8.3 13.36 0.1 13.36 $15.01 - $20.00 0.2 6.2 16.53 0.1 16.08 $20.01 - $25.00 0.1 3.5 23.32 0.1 23.37 $25.01+ 0.1 1.1 31.27 0.1 31.27 1.4 5.8 $ 13.69 0.8 $ 13.16 The Company uses the Black-Scholes valuation model to value stock options. The Company used historical stock prices for MTW shares of common stock as the basis for its volatility assumptions prior to the Spin-Off and stock prices for MFS shares of common stock as the basis for its volatility assumptions subsequent to the Spin-Off. The assumed risk-free rates were based on ten -year U.S. Treasury rates in effect at the time of grant. The expected option life represents the period of time that the options granted are expected to be outstanding and is based on historical experience. As of December 31, 2016 , the Company had $2.4 million of unrecognized compensation expense before tax related to stock options, which will be recognized over a weighted average period of 2.8 years . The weighted average fair value of options granted per share during the years ended December 31, 2016 , 2015 and 2014 was $6.03 , $9.71 and $14.83 , respectively. The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing method with the following assumptions: 2016 2015 2014 Expected life (years) 6.0 6.0 6.0 Risk-free interest rate 1.6 % 1.8 % 1.9 % Expected volatility 39.0 % 56.0 % 55.0 % Expected dividend yield — % 0.3 % 0.4 % For the years ended December 31, 2016 , 2015 and 2014 , the total intrinsic value of stock options exercised was $0.9 million , $1.8 million and $8.0 million , respectively. Restricted Stock Units During the years ended December 31, 2016, 2015 and 2014, the Company granted restricted stock units of 0.7 million , 0.2 million and 0.1 million , respectively. The restricted stock units are earned either based on service over the vesting period, or based on service over the vesting period on the extent to which performance goals are met over the applicable performance period ("performance shares"). The performance goals and the applicable performance period vary for each grant year. The Company recognized $5.1 million ( $3.1 million after taxes), $1.7 million ( $1.1 million after taxes) and $0.9 million ( $0.6 million after taxes) of compensation expense associated with restricted stock units during the years ended December 31, 2016 , 2015 and 2014 , respectively. The restricted stock units granted to employees in 2016, 2015 and 2014 vest on the third anniversary of the grant date, assuming continued employment. The restricted stock units granted to directors in 2016, 2015 and 2014 vest on the second anniversary of the grant date, assuming continued service. The performance shares granted in 2016 are earned based on the extent to which performance goals are met by the Company over a three -year measurement period from January 1, 2016 to December 31, 2018. The performance goals for these awards are based 50% on adjusted diluted earnings per share and 50% on return on invested capital over the three -year period. Depending on the foregoing factors, the number of shares awarded could range from zero to 0.9 million shares after the three -year performance period. For these awards, the expense is based on the fair value of MFS' shares of common stock on the grant date and reflects the number of awards that are expected to vest. Performance shares were not granted in 2015 due to anticipated separation from MTW. The performance goals for the performance shares granted in 2014 were based 50% on total stockholder return relative to a peer group of companies and 50% on EVA ® improvement over a three -year period. In connection with the Spin-Off, the Board of MTW agreed that the 2014 performance share award would be paid-out at target at the end of the three-year performance period. Thus, approximately 0.1 million shares will be awarded no later than March 15, 2017. For these awards, the expense is based on the fair value of MTW's shares as of the grant date for the EVA ® improvement criteria and a Monte Carlo model for the total stockholder return criteria. A summary of activity for restricted stock units for the year ended December 31, 2016 is as follows (in millions, except weighted average grant date fair value): Shares Weighted Unvested as of January 1, 2016 0.2 $ 24.50 Granted 0.7 15.20 Vested — — Forfeited — — Unvested as of December 31, 2016 0.9 $ 17.20 As of December 31, 2016 , the Company had $8.1 million of unrecognized compensation expense before tax related to restricted stock units, which will be recognized over a weighted average period of 2.4 years . |
Contingencies and Significant E
Contingencies and Significant Estimates | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Significant Estimates | Contingencies and Significant Estimates As of December 31, 2016 and 2015, the Company held reserves for environmental matters related to certain locations of approximately $0.5 million and $0.4 million , respectively. At certain of the Company's other facilities, it has identified potential contaminants in soil and groundwater. The ultimate cost of any remediation required will depend upon the results of future investigation. Based upon available information, the Company does not expect the ultimate costs at any of these locations will have a material adverse effect on its financial condition, results of operations or cash flows individually or in the aggregate. The Company believes that it has obtained and is in substantial compliance with those material environmental permits and approvals necessary to conduct its various businesses. Based on the facts presently known, the Company does not expect environmental compliance costs to have a material adverse effect on its financial condition, results of operations or cash flows. As of December 31, 2016 , various product-related lawsuits were pending. To the extent permitted under applicable law, all of these are insured with self-insurance retention levels. The Company's self-insurance retention levels vary by business, and have fluctuated over the last ten years. The range of our self-insured retention levels is $0.1 million to $0.3 million per occurrence. As of December 31, 2016 , the largest self-insured retention level for new occurrences currently maintained by the Company is $0.3 million per occurrence and applies to product liability claims for the hot category products manufactured in the United States. Product liability reserves are included in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets and were $2.3 million and $2.6 million at December 31, 2016 and 2015 , respectively; $0.7 million and $0.9 million , respectively, was reserved specifically for actual cases, and $1.6 million and $1.7 million , respectively, for claims incurred but not reported, which were estimated using actuarial methods. Based on our experience in defending product liability claims, management believes the current reserves are adequate for estimated case resolutions on aggregate self-insured claims and insured claims. Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers. At December 31, 2016 and 2015 , the Company had reserved $27.9 million and $34.3 million , respectively, for warranty claims expected to be paid out within a year or less, which are included in "Product warranties" in the accompanying consolidated balance sheets. At December 31, 2016 and 2015 , the Company had reserved $8.4 million and $5.7 million , respectively, for warranty claims expected to be paid out after a year, which are included in "Other long-term liabilities" in the accompanying consolidated balance sheets. Certain of these warranty and other related claims involve matters in dispute that ultimately are resolved by negotiations, arbitration or litigation. See Note 18, "Product Warranties," for further information. It is reasonably possible that the estimates for environmental remediation, product liability and warranty costs may change in the near future based upon new information that may arise or matters that are beyond the scope of the Company's historical experience. Presently, there are no reliable methods to estimate the amount of any such potential changes. The Company is also subject to litigation claims arising in the ordinary course of business. The Company believes that it has adequately accrued for legal matters as appropriate. The Company records litigation accruals for legal matters which are both probable and estimable and for related legal costs as incurred. The Company does not reduce these liabilities for potential insurance or third-party recoveries and any insurance recoveries are recorded in "Accounts receivable, less allowances" in the accompanying consolidated balance sheets with a corresponding reduction to "Selling, general and administrative expenses" in the accompanying consolidated statements of operations. In the opinion of management, the ultimate resolution of all litigation matters is not expected to have a material adverse effect on the Company's financial condition, results of operations or cash flows. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Product Warranties | Product Warranties In the normal course of business, the Company provides its customers a warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranty generally provides that products will be free from defects for periods ranging from 12 months to 60 months with certain equipment having longer-term warranties. If a product fails to comply with the Company’s warranty, the Company may be obligated, at its expense, to correct certain defects by repairing or replacing such defective products. The Company provides for an estimate of costs that may be incurred under its warranty at the time product revenue is recognized. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect our warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Below is a table summarizing the warranty activity for the years ended December 31, 2016 and 2015 : (in millions) 2016 2015 Balance at the beginning of the period $ 40.0 $ 42.0 Accruals for warranties issued 22.1 24.2 Settlements made (in cash or in kind) (25.1 ) (25.2 ) Currency translation impact (0.7 ) (1.0 ) Balance at the end of the period $ 36.3 $ 40.0 The Company also offers extended warranties, which are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the warranty period. Total deferred revenue on warranties included in "Accrued expenses and other current liabilities" and "Other long-term liabilities" in the accompanying consolidated balance sheets at December 31, 2016 and 2015 , was $6.1 million and $5.7 million , respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Certain restructuring activities have been undertaken to realize cost synergies and rationalize the cost structure of the Company. The restructuring reserve balance as of December 31, 2016 and 2015 , includes certain of these costs, including a pension withdrawal liability. The Company recorded additional amounts in 2016 primarily related to a company-wide reduction in force and the closing of its Cleveland, Singapore and Sellersburg facilities. The following is a rollforward of all restructuring activities related to the Company for the year ended December 31, 2016 (in millions): (in millions) 2016 2015 Balance at January 1 $ 16.8 $ 15.6 Restructuring charges 2.5 4.6 Use of reserve (4.9 ) (3.4 ) Balance at December 31 $ 14.4 $ 16.8 As of December 31, 2016, the short-term term portion of the liability of $3.3 million was reflected in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets. The long-term portion of the liability of $11.1 million was reflected in "Other long-term liabilities" in the accompanying consolidated balance sheets and relates entirely to the long-term portion of the pension withdrawal obligation incurred in connection with reorganization and plant restructuring of the Company's Lincoln Foodservice operation. See Note 20, "Employee Benefit Plans," for further details regarding this obligation. On August 11, 2016, the Company announced that it will transfer the products manufactured at its Sellersburg, Indiana plant to its plants in Tijuana and Monterrey, Mexico and subsequently close the Sellersburg plant, which occurred by the end of January 2017. This action relates entirely to the Company's Americas reportable segment. The Company also announced on this day that it will transfer the products manufactured at its Singapore plant to its plants in Prachinburi, Thailand and Foshan, China and subsequently close the Singapore plant, which occurred by the end of the third quarter of 2016. This action relates entirely to the Company's APAC reportable segment. The Company plans to sell the related assets of its Sellersburg and Singapore plants within the next six months. During the fourth quarter of 2015 and through the first half of 2016, the Company relocated its manufacturing, warehousing and distribution operations conducted at its Cleveland, Ohio plant and subsequently closed this facility. These actions relate entirely to the Company's Americas reportable segment. The Company expects to sell the related land, building and building improvements within the next 6 months. As of December 31, 2016, the property, plant and equipment - net of $2.2 million and $2.3 million related to the Singapore and Cleveland plant closures, respectively, met the criteria to be classified as held for sale and are presented as "Current assets held for sale" in the accompanying consolidated balance sheets. During the years ended December 31, 2016 and 2015, the Company recognized impairment charges of $1.2 million and $9.0 million on its Cleveland facility, which is included in "Asset impairment expense" in the accompanying consolidated statements of operations. The estimated fair value was derived using primarily Level 3 inputs under ASC 820, which requires management judgment and estimation. The Company expects to incur total restructuring costs associated with the aforementioned plant closures of approximately $3.5 million . Of this amount, $1.7 million , $1.3 million and $0.1 million were recorded during the years ended December 31, 2016, 2015 and 2014, respectively. These charges are presented separately in "Restructuring expense" in the accompanying consolidated statements of operations. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company maintains several different retirement plans for its operations in the Americas, Europe and Asia. The current plans are based largely upon benefit plans that MTW maintained prior to the Spin-Off. The Company has established a Retirement Plan Committee to manage the operations and administration of all retirement plans and related trusts. Defined Contribution Plans Prior to December 31, 2015, MTW maintained three defined contribution retirement plans for its eligible employees and retirees: (1) The Manitowoc Company, Inc. 401(k) Retirement Plan (the "MTW 401(k) Retirement Plan"); (2) The Manitowoc Company, Inc. Retirement Savings Plan (the "MTW Retirement Savings Plan"); and (3) The Manitowoc Company, Inc. Deferred Compensation Plan (the "MTW Deferred Compensation Plan"). The MTW 401(k) Retirement Plan, the MTW Retirement Savings Plan and the MTW Deferred Compensation Plan (together, the "MTW DC Plans") covered eligible employees of MTW, including MTW's Crane business and Foodservice business. Effective January 1, 2016, a portion of each MTW DC Plan was spun off to create separate plans for MTW's Foodservice business: (1) the Manitowoc Foodservice 401(k) Retirement Plan (the "MFS 401(k) Retirement Plan"); (2) the Manitowoc Foodservice Retirement Savings Plan (the "MFS Retirement Savings Plan"); and (3) the Manitowoc Foodservice Deferred Compensation Plan (the "MFS Deferred Compensation Plan"). The MFS 401(k) Retirement Plan, the MFS Retirement Savings Plan and the MFS Deferred Compensation Plan (together, the "MFS DC Plans") were initially sponsored by Manitowoc FSG U.S. Holding, LLC. MFS assumed sponsorship of the MFS DC Pension Plans on March 4, 2016. MFS no longer participates in the MTW DC Plans. The MFS DC Plans are substantially similar to the former MTW DC Plans. The MTW DC Plans and the MFS DC Plans result in individual participant balances that reflect a combination of amounts contributed by MTW and MFS or deferred by the participant, amounts invested at the direction of either the company or the participant, and the continuing reinvestment of returns until the accounts are distributed. MFS 401(k) Retirement Plan The MFS 401(k) Retirement Plan is a tax-qualified retirement plan that is available to substantially all non-union U.S. employees of MFS, its subsidiaries and related entities. The MFS 401(k) Retirement Plan allows employees to make both pre- and post-tax elective deferrals, subject to certain limitations under the Internal Revenue Code of 1986, as amended (the "Tax Code"). MFS also has the right to make the following additional contributions: (1) a matching contribution based upon individual employee deferrals and (2) an additional contribution based on MFS’ performance metrics. Each participant in the MFS 401(k) Retirement Plan is allowed to direct the investment of that participant’s account among a diverse mix of investment funds, including a Company stock alternative. To the extent that any funds are invested in MFS stock, that portion of the MFS 401(k) Retirement Plan is an employee stock ownership plan, as defined under the Tax Code (an "ESOP"). The terms governing the retirement benefits under the MFS 401(k) Retirement Plan are the same for MFS’ executive officers as they are for other eligible employees in the United States. MFS Retirement Savings Plan The MFS Retirement Savings Plan is a tax-qualified retirement plan that is available to certain collectively bargained U.S. employees of MFS, its subsidiaries and related entities. The MFS Retirement Savings Plan allows employees to make both pre- and post-tax elective deferrals, subject to certain limitations under the Tax Code. MFS also has the right to make the following additional contributions: (1) a matching contribution based upon individual employee deferrals; and (2) an additional discretionary or fixed Company contribution. Each participant in the MFS Retirement Savings Plan is allowed to direct the investment of that participant’s account among a diverse mix of investment funds, including a Company stock alternative. To the extent that any funds are invested in MFS stock, that portion of the MFS Retirement Savings Plan is an ESOP. MFS’ executive officers are not eligible to participate in the MFS Retirement Savings Plan. MFS contributions to the plans are based upon formulas contained in the plans. For both plans mentioned above, MFS' portion of total costs incurred under these plans were $2.0 million , $1.5 million and $3.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. MFS Deferred Compensation Plan The MFS Deferred Compensation Plan is a non-tax-qualified supplemental deferred compensation plan for highly compensated and key management employees and for directors. MFS maintains the MFS Deferred Compensation Plan to allow eligible individuals to save for retirement in a tax-efficient manner despite Tax Code restrictions that would otherwise impair their ability to do so under the MFS 401(k) Retirement Plan. The MFS Deferred Compensation Plan also assists MFS in retaining those key employees and directors. The MFS Deferred Compensation Plan accounts are credited with: (1) elective deferrals made at the request of the individual participant; and/or (2) a discretionary Company contribution for each individual participant. Although unfunded within the meaning of the Tax Code, the MFS Deferred Compensation Plan utilizes a rabbi trust to hold assets intended to satisfy MFS’ corresponding future benefit obligations. Each participant in the MFS Deferred Compensation Plan is credited with interest based upon individual elections from amongst a diverse mix of investment funds that are intended to reflect investment funds similar to those offered under the MFS 401(k) Retirement Plan, including Company stock. Participants do not receive preferential or above-market rates of return under the MFS Deferred Compensation Plan. Plan participants are able to direct deferrals and Company matching contributions into two separate investment programs, Program A and Program B. The investment assets in Program A and B are held in two separate Deferred Compensation Plans, which restrict the Company’s use and access to the funds, but which are also subject to the claims of the Company’s general creditors in rabbi trusts. Program A invests solely in the Company’s stock; dividends paid on the Company’s stock are automatically reinvested; and all distributions must be made in Company stock. Program B offers a variety of investment options but does not include Company stock as an investment option. All distributions from Program B must be made in cash. Participants cannot transfer assets between programs. Program A is accounted for as a plan that does not permit diversification. As a result, the Company stock held by Program A is classified in equity in a manner similar to accounting for treasury stock. The deferred compensation obligation is classified as an equity instrument. Changes in the fair value of the Company’s stock and the compensation obligation are not recognized. The asset and obligation for Program A was $0.2 million at December 31, 2016. These amounts are offset in the accompanying consolidated statements of equity. Program B is accounted for as a plan that permits diversification. As a result, the assets held by Program B are classified as an asset in the Consolidated Balance Sheets and changes in the fair value of the assets are recognized in earnings. The deferred compensation obligation is classified as a liability in the Consolidated Balance Sheets and adjusted, with a charge or credit to compensation cost, to reflect changes in the fair value of the obligation. The assets, which are included in "Other non-current assets," and obligation, which are included in "Other long-term liabilities," were both $5.5 million at December 31, 2016 in the accompanying consolidated balance sheets. There was no net impact on the accompanying consolidated statements of operations for the year ended December 31, 2016. Defined Benefit Plans Prior to December 31, 2015, MTW maintained two defined benefit pension plans for its eligible employees and retirees: (1) The Manitowoc Company, Inc. Pension Plan (the "MTW Pension Plan"); and (2) The Manitowoc Company, Inc. Supplemental Executive Retirement Plan (the "MTW SERP"). The MTW Pension Plan and the MTW SERP (together, the "MTW DB Plans") covered eligible employees of MTW, including MTW's Crane business and Foodservice business. The MTW Pension Plan is frozen to new participants and future benefit accruals. Effective January 1, 2016, a portion of each MTW DB Plan was spun off to create separate plans for MTW's Foodservice business: (1) the Manitowoc Foodservice Pension Plan (the "MFS Pension Plan"); and (2) the Manitowoc Foodservice Supplemental Executive Retirement Plan (the "MFS SERP"). The MFS Pension Plan and the MFS SERP (together, the "MFS DB Plans") were initially sponsored by Manitowoc FSG U.S. Holding, LLC. MFS assumed sponsorship of the MFS DB Pension Plans on March 4, 2016. MFS no longer participates in the MTW DB Plans. The MFS DB Plans are substantially similar to the former MTW DB Plans. When comparing the current financial information to financial statements for prior years, it is important to distinguish between: (1) the defined benefit plan that also covered employees of MTW and other MTW subsidiaries (the "Shared Plans"); and (2) the defined benefit plans which are sponsored directly by MFS or its subsidiaries and offered only to MFS employees or retirees (the "Direct Plans"). Shared Plans MFS accounted for the Shared Plans for the purpose of the consolidated financial statements as a multiemployer plan. Accordingly, MFS did not record an asset or liability to recognize the funded status of the Shared Plans. However, the costs associated with these Shared Plans of $0.9 million , $1.6 million and $1.0 million for the years ended December 31, 2016, 2015 and 2014, respectively, are reflected in the accompanying consolidated statements of operations. This expense reflects an approximation of MFS' portion of the costs of the Shared Plans, including costs attributable to MTW corporate employees, which have been allocated to the accompanying consolidated statements of operations based on methodology deemed reasonable by management for the periods prior to the Spin-Off. During the year ended December 31, 2016, MFS assumed certain pension obligations of $55.6 million and related plan assets of $34.1 million , and certain postretirement health obligations of $6.8 million , to newly-created single employer plans for MFS employees and certain other MFS-sponsored pension plans, as described above. This net transfer of approximately $28.3 million was treated as a non-cash transaction between the Company and MTW. The Company also assumed after-tax deferred gains of $6.1 million related to these plans, which were recorded in AOCI. Direct Plans The Direct Plans are accounted for as defined benefit plans. Accordingly, the funded and unfunded position of each Direct Plan is recorded in the accompanying consolidated balance sheets and the related income and expenses are recorded in the accompanying consolidated statements of operations. Actuarial gains and losses that have not yet been recognized through income are recorded in "Accumulated other comprehensive loss, net of taxes" until they are amortized as a component of net periodic benefit cost. The determination of benefit obligations and the recognition of expenses related to the Direct Plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets and future compensation increases. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. The components of periodic benefit costs for the Direct Plans for the years ended December 31, 2016 , 2015 and 2014 are as follows: Pension Plans Postretirement Health (in millions) 2016 2015 2014 2016 2015 2014 Service cost - benefits earned during the year $ 0.2 $ 0.4 $ 0.5 $ — $ — $ — Interest cost of projected benefit obligation 8.3 6.5 8.1 0.4 0.1 0.2 Expected return on assets (6.2 ) (5.4 ) (7.1 ) — — — Amortization of prior service cost — — — — — (0.3 ) Amortization of actuarial net (gain) loss 2.5 1.2 0.9 — (0.1 ) (0.1 ) Curtailment gain recognized — — — — — — Net periodic benefit cost $ 4.8 $ 2.7 $ 2.4 $ 0.4 $ — $ (0.2 ) Weighted average assumptions: Discount rate 3.9 % 3.5 % 4.4 % 3.9 % 3.7 % 4.5 % Expected return on plan assets 3.7 % 3.5 % 4.5 % N/A N/A N/A Rate of compensation increase 4.0 % 4.0 % 4.0 % 1.5 % 1.5 % 1.5 % Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants. To develop the expected long-term rate of return on assets assumptions, MFS considered the historical returns and future expectations for returns in each asset class, as well as targeted asset allocation percentages within the pension portfolio. The following is a reconciliation of the changes in benefit obligation, the changes in plan assets and the funded status of the Direct Plans as of December 31, 2016 and 2015 : Pension Plans Postretirement (in millions) 2016 2015 2016 2015 Change in Benefit Obligation Benefit obligation, beginning of year $ 177.2 $ 195.0 $ 3.2 $ 2.8 Service cost 0.2 0.4 — — Interest cost 8.3 6.5 0.4 0.1 Participant contributions — — 0.4 0.3 Plan combinations 55.6 — 6.8 — Actuarial loss (gain) 4.1 (5.5 ) — 0.7 Currency translation adjustment (29.3 ) (8.8 ) — (0.2 ) Benefits paid (12.2 ) (10.4 ) (1.8 ) (0.5 ) Benefit obligation, end of year $ 203.9 $ 177.2 $ 9.0 $ 3.2 Change in Plan Assets Fair value of plan assets, beginning of year 147.9 162.1 — — Actual return on plan assets 14.1 0.6 — — Employer contributions 6.1 3.1 1.4 0.2 Participant contributions — — 0.4 0.3 Plan combinations 34.1 — — — Currency translation adjustment (26.2 ) (7.5 ) — — Benefits paid (12.2 ) (10.4 ) (1.8 ) (0.5 ) Fair value of plan assets, end of year 163.8 147.9 — — Funded status $ (40.1 ) $ (29.3 ) $ (9.0 ) $ (3.2 ) Amounts Recognized in the Consolidated Balance Sheet at December 31 Pension obligation (1) $ (40.1 ) $ (29.3 ) $ — $ — Postretirement health and other benefit obligations (2) — — (9.0 ) (3.2 ) Net amount recognized $ (40.1 ) $ (29.3 ) $ (9.0 ) $ (3.2 ) Weighted-Average Assumptions Discount rate 3.1 % 3.7 % 3.5 % 3.9 % Rate of compensation increase N/A 4.0 % 1.5 % 1.5 % (1) As of December 31, 2016, the short-term portion of the pension obligation and postretirement health and other benefit obligation of $0.7 million and $1.0 million, respectively, are included in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets. Amounts recognized in accumulated other comprehensive income as of December 31, 2016 and 2015 , consist of the following: Pension Plans Postretirement (in millions) 2016 2015 2016 2015 Net actuarial gain (loss) $ (40.5 ) $ (35.1 ) $ (0.5 ) $ — Total amount recognized $ (40.5 ) $ (35.1 ) $ (0.5 ) $ — The Company expects to recognize $1.5 million of net periodic benefit cost for the pension plan during the next fiscal year, which is currently included in accumulated other comprehensive income and no gain is expected to be recognized for the postretirement health and other plans. For measurement purposes, a 6.5% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2016 . The rate was assumed to decrease gradually to 4.5% for 2037 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The following table summarizes the sensitivity of our December 31, 2016 retirement obligations and 2016 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions): Change in assumption: Estimated increase Estimated increase Estimated increase Estimated increase 0.5% increase in discount rate $ (0.4 ) $ (13.4 ) $ — $ (0.3 ) 0.5% decrease in discount rate 0.4 14.5 — 0.3 0.5% increase in long-term return on assets (0.8 ) N/A N/A N/A 0.5% decrease in long-term return on assets 0.8 N/A N/A N/A 1% increase in medical trend rates N/A N/A 0.1 0.6 1% decrease in medical trend rates N/A N/A (0.1 ) (0.5 ) It is reasonably possible that the estimate for future retirement and health costs may change in the near future due to changes in the health care environment or changes in interest rates that may arise. Presently, there is no reliable means to estimate the amount of any such potential changes. The weighted-average asset allocations of the pension plans at December 31, 2016 and 2015 , by asset category are as follows 2016 2015 Equity Securities 20.8 % 10.2 % Debt Securities 34.5 % 28.9 % Other 44.7 % 60.9 % 100.0 % 100.0 % Investment Strategy The overall objective of the Company's pension assets is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension fund. Specific investment objectives for the Company's long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, achieving a competitive, total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. The Company reviews its long-term, strategic asset allocations annually. The Company uses various analytics to determine the optimal asset mix and consider plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns. The Company identifies investment benchmarks for the asset classes in the strategic asset allocation that are market-based and investable where possible. Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions and the timing of benefit payments and contributions. The asset allocation is monitored and rebalanced on a monthly basis. The actual allocations for the pension assets at December 31, 2016 , and target allocations by asset class, are as follows: Target Allocations Weighted Average Asset Allocations Equity Securities 20.3 % 20.8 % Debt Securities 33.8 % 34.5 % Other 45.9 % 44.7 % Risk Management In managing the plan assets, the Company reviews and manages risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability management and asset class diversification are central to our risk management approach and are integral to the overall investment strategy. Further, asset classes are constructed to achieve diversification by investment strategy, by investment manager, by industry or sector and by holding. Investment manager guidelines for publicly traded assets are specified and are monitored regularly. Fair Value Measurements The following table presents our plan assets using the fair value hierarchy as of December 31, 2016 and 2015 . The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. December 31, 2016 Assets (in millions) Quoted Prices in Significant Other Unobservable Total Cash $ 1.0 $ — $ — $ 1.0 Insurance group annuity contracts — — 72.2 72.2 Common/collective trust funds — Government, corporate and other non-government debt — 51.6 — 51.6 Common/collective trust funds — Corporate equity — 34.1 — 34.1 Common/collective trust funds — Customized strategy — 4.9 — 4.9 Total $ 1.0 $ 90.6 $ 72.2 $ 163.8 December 31, 2015 Assets (in millions) Quoted Prices in Significant Other Unobservable Total Cash $ 0.3 $ — $ — $ 0.3 Insurance group annuity contracts — — 89.9 89.9 Common/collective trust funds — Government, corporate and other non-government debt — 36.7 — 36.7 Common/collective trust funds — Corporate equity — 15.1 — 15.1 Common/collective trust funds — Customized strategy — 5.9 — 5.9 Total $ 0.3 $ 57.7 $ 89.9 $ 147.9 Cash equivalents and other short-term investments, which are used to pay benefits, are primarily held in registered money market funds which are valued using a market approach based on the quoted market prices of identical instruments. Other cash equivalent and short-term investments are valued daily by the fund using a market approach with inputs that include quoted market prices for similar instruments. Insurance group annuity contracts are valued at the present value of the future benefit payments owed by the insurance company to the plans’ participants. Common/collective funds are typically common or collective trusts valued at their net asset values that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity. A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows: Insurance Contracts (in millions) 2016 2015 Beginning Balance $ 89.9 $ 98.9 Actual return on assets 2.5 0.9 Benefit payments (4.8 ) (5.4 ) Foreign currency impact (15.4 ) (4.5 ) Ending Balance $ 72.2 $ 89.9 The expected 2017 contributions for pension plans are as follows: the minimum contribution for 2017 is $10.0 million ; and no planned discretionary or non-cash contributions. Expected company paid claims for the postretirement health and life insurance plans are $1.0 million for 2017. Projected benefit payments from the plans as of December 31, 2016 are estimated as follows: (in millions) Pension Plans Postretirement 2017 $ 11.7 $ 1.0 2018 12.0 1.1 2019 12.4 1.1 2020 12.9 1.0 2021 13.2 0.9 2022-2026 71.9 3.6 The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2016 and 2015 is as follows: Pension Plans (in millions) 2016 2015 Projected benefit obligation $ 203.9 $ 177.2 Accumulated benefit obligation 203.9 176.3 Fair value of plan assets 163.8 147.9 The accumulated benefit obligation for all pension plans as of December 31, 2016 and 2015 was $203.9 million and $176.3 million , respectively. The measurement date for all plans is December 31, 2016 . The Company, through its Lincoln Foodservice operation, participated in a multiemployer defined benefit pension plan under a collective bargaining agreement that covered certain of its union-represented employees. In 2013, with the finalization of the reorganization and plant restructuring that affected the Lincoln Foodservice operation, the Company was deemed to have effectively withdrawn its participation in the multiemployer defined benefit pension plan. This withdrawal obligation is part of the restructuring accrual in the accompanying consolidated balance sheets as described in Note 19, "Restructuring." The total withdrawal obligation, which amounted to $13.1 million and $14.7 million as of December 31, 2016 and 2015, respectively, is payable in 48 quarterly installments of $0.5 million through April 2026, which includes both principal and accrued interest. As the Company was deemed to have effectively withdrawn its participation in this plan in 2013, no further contributions were made to the plan. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | Leases The Company leases various property, plant and equipment under non-cancelable operating leases, subject to certain provisions for renewal options and escalation clauses. Terms of the leases vary, but generally require the Company to pay property taxes, insurance premiums and maintenance costs associated with the leased property. Rental expense attributable to operating leases was $12.8 million , $11.2 million and $13.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Future minimum rental obligations under non-cancelable operating leases as of December 31, 2016 , are payable as follows: (in millions) Year ending December 31: 2017 $ 11.2 2018 9.2 2019 7.6 2020 5.6 2021 3.6 Thereafter 0.2 $ 37.4 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company identifies its segments using the "management approach," which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company's reportable segments. Management organizes the business based on geography, and has designated the regions Americas, EMEA and APAC as reportable segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 2, "Summary of Significant Accounting Policies," except that certain expenses are not allocated to the segments. These unallocated expenses are corporate overhead, stock-based compensation expense, amortization expense of intangible assets with definite lives, asset impairment expense, restructuring expense and other non-operating expenses. The Company evaluates segment performance based upon earnings before interest, taxes, other (income) expense and amortization expense ("Operating EBITA") before the aforementioned expenses. Financial information relating to the Company's reportable segments as of December 31, 2016 and 2015 and for the years ended December 31, 2016 , 2015 and 2014 is as follows: (in millions) 2016 2015 2014 Net sales: Americas $ 1,186.6 $ 1,323.7 $ 1,301.9 EMEA 287.6 281.6 315.1 APAC 190.9 191.1 198.2 Elimination of intersegment sales (208.5 ) (226.3 ) (233.9 ) Total net sales $ 1,456.6 $ 1,570.1 $ 1,581.3 Segment Operating EBITA: Americas $ 219.1 $ 189.9 $ 197.4 EMEA 41.3 23.1 20.7 APAC 21.8 22.5 21.6 Total segment Operating EBITA 282.2 235.5 239.7 Corporate and unallocated (51.8 ) (44.2 ) (35.4 ) Amortization expense (31.2 ) (31.4 ) (31.8 ) Earnings from operations 199.2 159.9 172.5 Interest expense (85.2 ) (1.4 ) (1.3 ) Interest (expense) income on notes with MTW — net (0.1 ) 15.8 16.6 Other (expense) income — net (9.1 ) 22.1 (2.1 ) Earnings before income taxes $ 104.8 $ 196.4 $ 185.7 Operating EBITA % by segment (1) : Americas 18.5 % 14.3 % 15.2 % EMEA 14.4 % 8.2 % 6.6 % APAC 11.4 % 11.8 % 10.9 % (1) Operating EBITA % in the section above is calculated by dividing the dollar amount of Operating EBITA by net sales for each respective segment. Capital expenditures: Americas $ 12.4 $ 8.4 $ 12.4 EMEA 0.9 1.5 2.9 APAC 1.8 1.4 0.8 Corporate 0.9 1.9 9.2 Total capital expenditures $ 16.0 $ 13.2 $ 25.3 Depreciation: Americas $ 12.1 $ 14.3 $ 14.1 EMEA 2.5 2.6 3.0 APAC 2.0 2.1 2.3 Corporate 0.7 0.6 1.8 Total depreciation $ 17.3 $ 19.6 $ 21.2 Total assets by segment: Americas $ 1,463.7 $ 1,495.2 EMEA 102.6 148.5 APAC 110.8 96.5 Corporate 92.0 13.8 Total assets $ 1,769.1 $ 1,754.0 Net sales by product class are categorized into commercial foodservice whole goods and aftermarket parts and service. Net sales by product class for the years ended December 31, 2016 , 2015 and 2014 are as follows: (in millions) 2016 2015 2014 Commercial foodservice whole goods $ 1,191.0 $ 1,277.2 $ 1,293.6 Aftermarket parts and support 265.6 292.9 287.7 Total net sales $ 1,456.6 $ 1,570.1 $ 1,581.3 Net sales in the table below are attributable to geographic regions based on location of customer. Net sales and long-lived asset information by geographic area for the years ended December 31, 2016, 2015 and 2014 and as of December 31, 2016 and 2015 are as follows: (in millions) 2016 2015 2014 Net sales by geographic area: United States $ 945.7 $ 1,066.7 $ 996.4 Other Americas 104.3 106.6 127.4 EMEA 242.0 237.2 280.3 APAC 164.6 159.6 177.2 Total net sales by geographic area $ 1,456.6 $ 1,570.1 $ 1,581.3 Long-lived assets by geographic area (1) : 2016 2015 United States $ 1,313.3 $ 1,339.2 Other Americas 40.1 40.3 EMEA 69.7 78.2 APAC 30.6 34.8 Total long-lived assets by geographic area $ 1,453.7 $ 1,492.5 (1) Excludes deferred tax assets of $7.2 million and $8.9 million recorded in "Other non-current assets" in the accompanying consolidated balance sheets as of December 31, 2016 and 2015, respectively. The Company sells primarily through distributors and dealers ("direct customers"), who ultimately sell to end customers. No single direct customer represented 10.0% or greater of the Company's net sales for the years ended December 31, 2016 or 2015. Only one end customer, McDonald's, represented 10.0% or greater of the Company's net sales for the years ended December 31, 2014. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table presents financial data for each quarter in 2016 and 2015 : 2016 (in millions, except per share data) First Second Third Fourth Net sales $ 325.5 $ 368.4 $ 384.0 $ 378.7 Gross profit 117.6 134.7 142.0 138.5 Net earnings 18.1 15.1 24.9 21.4 Per share data Earnings per common share — Basic $ 0.13 $ 0.11 $ 0.18 $ 0.15 Earnings per common share — Diluted $ 0.13 $ 0.11 $ 0.18 $ 0.15 2015 (in millions, except per share data) First Second Third Fourth Net sales $ 345.4 $ 407.7 $ 425.3 $ 391.7 Gross profit 106.6 126.9 135.3 132.9 Net earnings 14.0 36.9 41.1 65.1 Per share data (1) Earnings per common share — Basic $ 0.10 $ 0.27 $ 0.30 $ 0.48 Earnings per common share — Diluted $ 0.10 $ 0.27 $ 0.30 $ 0.48 (1) On March 4, 2015, MTW distributed 137.0 million shares of MFS common stock to MTW shareholders in connection with the Spin-Off. See Note 25, "Earnings Per Share," for more information. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of MFS shares outstanding immediately following this transaction. |
Net Parent Company Investment a
Net Parent Company Investment and Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Net Parent Company Investment and Related Party Transactions | Net Parent Company Investment and Related Party Transactions Related Party Transactions and Cash Management Prior to the Spin-Off MFS does not enter into transactions with related parties to purchase and/or sell goods or services in the ordinary course of business. Transactions between MFS and MTW are reflected in "Net parent company investment" in the accompanying consolidated balance sheets and in the accompanying consolidated statements of cash flows as a financing activity in "Net transactions with MTW." Prior to the Spin-Off, MFS participated in MTW's centralized cash management program in which cash was swept each day and held in a centralized account at the corporate level. Net Parent Company Investment and Corporate Cost Allocations Prior to the Spin-Off Prior to the Spin-Off, MTW performed certain general and corporate functions on MFS' behalf. The related costs included, but were not limited to, accounting, treasury, tax, legal, human resources, audit and information technology ("general corporate expenses"). For purposes of preparing the consolidated financial statements for periods prior to the Spin-Off, these costs were allocated on a basis of direct usage, where identifiable, or through the use of allocation methodologies based on percentage of sales, headcount or other methodologies deemed appropriate by management. These general corporate expenses are included within "Selling, general and administrative" costs and "Net parent company investment" in the accompanying consolidated financial statements. Management believes the assumptions associated with allocating these costs are reasonable. Nevertheless, the consolidated financial statements may not include all of the actual expense that would have been incurred and may not represent MFS' results of operations, financial position or cash flows had it been a stand-alone company during the periods prior to the Spin-Off. Actual costs that would have been incurred if MFS had been a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. General corporate expenses allocated to MFS during the years ended December 31, 2016 , 2015 and 2014 were $5.2 million , $24.6 million and $22.1 million , respectively. None of MTW's debt has been reflected in the accompanying consolidated balance sheets as of December 31, 2015 because MFS was not a party to the obligations between MTW and the debt holders. No financing costs or interest expense associated with MTW's debt has been allocated to the consolidated financial statements for periods prior to the Spin-Off. All significant intercompany transactions between MFS and MTW have been included within "Net parent company investment" in the accompanying consolidated balance sheet related to the period ended December 31, 2015. The total effect of the settlement of these intercompany transactions is reflected as a financing activity in the accompanying consolidated statements of cash flows. However, the interest income and expense related to the notes with MTW is presented on a net basis in the accompanying consolidated statements of operations. Interest income on the notes with MTW for the years ended December 31, 2016 , 2015 and 2014 , is net of interest expense on the notes with MTW of $0.1 million , $0.6 million and $1.3 million , respectively. The notes receivable balances from MTW as of December 31, 2015 was $70.8 million and the notes payable balance to MTW as of December 31, 2015 was $9.9 million . Guarantees Prior to the Spin-Off Certain of MTW's subsidiaries, which includes selected entities that are part of MFS, entered into guarantee agreements with MTW's lenders whereby these subsidiaries guaranteed the obligations under, and/or pledged their assets as collateral, with respect to such MTW debt. However, none of these MFS subsidiaries were named as obligors in the debt agreements held in the name of MTW. For that reason, MTW did not historically allocate debt balances and/or charge out third-party debt related expenses to MFS. Post Spin-Off Activity In connection with the Spin-Off, the Company entered into a series of agreements with MTW, which are intended to govern the relationship between MFS and MTW and to facilitate an orderly separation of MFS from MTW. These agreements include a Master Separation and Distribution Agreement ("Separation Agreement"), Transition Services Agreement ("TSA"), Employee Matters Agreement, Intellectual Property Matters Agreement and Tax Matters Agreement. In accordance with the Separation Agreement, at the time of the Spin-Off, MTW contributed its net investment in MFS and certain assets and liabilities in exchange for a $1,362.0 million cash distribution that was funded through the long-term debt incurred by MFS. In addition, separation related adjustments are included in "Additional paid-in capital (deficit)" in the accompanying consolidated balance sheets consisting of net liabilities assumed by MFS related to the pension plans of $21.5 million , post-retirement medical obligations of $6.8 million and income taxes payable of $0.6 million . The Separation Agreement included provisions on the allocation of assets and liabilities between legal entities that were being split into a separate MTW and MFS legal entity as part of the Spin-Off. The Separation Agreement also included provisions on the split of joint administrative costs that were incurred post Spin-Off. Under the TSA, MFS and MTW provided each other certain specified services on a transitional basis, including, among others, payroll and other human resource services, information systems, insurance, legal, finance and other corporate services, as well as procurement and sourcing support. The charges for the transition services were generally intended to allow the providing company to fully recover the allocated direct costs of providing the services, plus all out-of-pocket costs and expenses, generally without profit except where required by local law. The services were substantially complete as of December 31, 2016. The expenses related to the TSA for the year ended December 31, 2016 were immaterial. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share ("EPS") measures the performance of an entity over the reporting period. Diluted EPS measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares related to the Company's stock options, restricted stock units and performance shares that were outstanding during the period. On March 4, 2016, MTW distributed 137.0 million shares of MFS common stock to MTW shareholders, thereby completing the Spin-Off. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of MFS shares outstanding immediately following this transaction. The same number of shares were used to calculate basic and diluted earnings per share, for each year presented, since no equity awards were outstanding prior to the Spin-Off. The following is a reconciliation of the numerator and denominator used to compute basic and diluted EPS for the years ended December 31, 2016 , 2015 and 2014 . (in millions, except per share data) 2016 2015 2014 Net earnings $ 79.5 $ 157.1 $ 159.8 Basic weighted average common shares outstanding 137,906,284 137,016,712 137,016,712 Effect of dilutive securities 1,807,836 — — Diluted weighted average common shares outstanding 139,714,120 137,016,712 137,016,712 Basic earnings per common share $ 0.58 $ 1.15 $ 1.17 Diluted earnings per common share $ 0.57 $ 1.15 $ 1.17 For the year ended December 31, 2016, 3.6 million of common shares issuable upon the exercise of stock options were anti-dilutive and were excluded from the calculation of diluted shares, respectively. On March 3, 2016, prior to the completion of the Spin-Off, MFS paid a one-time cash dividend to MTW of $1,362.0 million . MFS did not declare or pay any other dividends to its stockholders during the years ended December 31, 2016, 2015 or 2014. |
Subsidiary Guarantors of Senior
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 | Subsidiary Guarantors of Senior Notes due 2024 The following tables present consolidating (condensed) financial information for (a) MFS; (b) the guarantors of the Senior Notes, which include substantially all of the domestic, 100% owned subsidiaries of MFS ("Subsidiary Guarantors"); and (c) the wholly and partially owned foreign subsidiaries of MFS, which do not guarantee the Senior Notes ("Non-Guarantor Subsidiaries"). The information includes elimination entries necessary to consolidate the Subsidiary Guarantors and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, equity and intercompany balances and transactions. Separate financial statements of the Subsidiary Guarantors are not presented because the guarantors are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions. MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Operations For the year ended December 31, 2016 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 1,070.0 $ 782.2 $ (395.6 ) $ 1,456.6 Cost of sales 3.4 775.9 540.1 (395.6 ) 923.8 Gross profit (3.4 ) 294.1 242.1 — 532.8 Selling, general and administrative expenses 35.5 152.9 101.7 — 290.1 Amortization expense — 28.4 2.8 — 31.2 Separation expense 6.3 — 0.2 — 6.5 Restructuring expense — 1.6 0.9 — 2.5 Asset impairment expense — 2.9 0.4 — 3.3 Earnings (loss) from operations (45.2 ) 108.3 136.1 — 199.2 Interest expense 82.2 1.2 1.8 — 85.2 Interest expense on notes with MTW — net — — 0.1 — 0.1 Other (income) expense — net (5.6 ) 19.6 (4.9 ) — 9.1 Equity in earnings (loss) of subsidiaries 200.5 114.0 — (314.5 ) — Earnings (loss) before income taxes 78.7 201.5 139.1 (314.5 ) 104.8 Income taxes (0.8 ) 1.0 25.1 — 25.3 Net earnings (loss) $ 79.5 $ 200.5 $ 114.0 $ (314.5 ) $ 79.5 Total other comprehensive income (loss), net of tax 1.1 3.0 7.3 (10.3 ) 1.1 Comprehensive income (loss) $ 80.6 $ 203.5 $ 121.3 $ (324.8 ) $ 80.6 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Operations For the year ended December 31, 2015 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 1,109.8 $ 809.9 $ (349.6 ) $ 1,570.1 Cost of sales 0.1 803.6 614.3 (349.6 ) 1,068.4 Gross profit (0.1 ) 306.2 195.6 — 501.7 Selling, general and administrative expenses 32.2 144.6 114.8 — 291.6 Amortization expense — 28.5 2.9 — 31.4 Separation expense 4.4 (0.5 ) 1.3 — 5.2 Restructuring expense — 1.9 2.7 — 4.6 Asset impairment expense — 9.0 — — 9.0 Earnings from operations (36.7 ) 122.7 73.9 — 159.9 Interest expense — 1.2 0.2 — 1.4 Interest income on notes with MTW — net — (14.9 ) (0.9 ) — (15.8 ) Other income — net (78.6 ) 77.8 (21.3 ) — (22.1 ) Equity in earnings (loss) of subsidiaries 123.2 77.9 — (201.1 ) — Earnings before income taxes 165.1 136.5 95.9 (201.1 ) 196.4 Income taxes 8.0 13.3 18.0 — 39.3 Net earnings (loss) $ 157.1 $ 123.2 $ 77.9 $ (201.1 ) $ 157.1 Total other comprehensive (loss) income, net of tax (23.8 ) (27.7 ) (26.9 ) 54.6 (23.8 ) Comprehensive income (loss) $ 133.3 $ 95.5 $ 51.0 $ (146.5 ) $ 133.3 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Operations For the year ended December 31, 2014 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 1,051.7 $ 836.5 $ (306.9 ) $ 1,581.3 Cost of sales — 750.3 629.9 (306.9 ) 1,073.3 Gross profit — 301.4 206.6 — 508.0 Selling, general and administrative expenses 29.3 142.0 128.3 — 299.6 Amortization expense — 28.5 3.3 — 31.8 Separation expense — 0.1 0.3 — 0.4 Restructuring expense — 2.7 (0.1 ) — 2.6 Asset impairment expense — 1.1 — — 1.1 Earnings from operations (29.3 ) 127.0 74.8 — 172.5 Interest expense — 1.2 0.1 — 1.3 Interest income on notes with MTW — net — (17.3 ) 0.7 — (16.6 ) Other income — net 7.8 (4.2 ) (1.5 ) — 2.1 Equity in earnings (loss) of subsidiaries 192.0 65.7 — (257.7 ) — Earnings before income taxes 154.9 213.0 75.5 (257.7 ) 185.7 Income taxes (4.9 ) 21.0 9.8 — 25.9 Net earnings (loss) $ 159.8 $ 192.0 $ 65.7 $ (257.7 ) $ 159.8 Total other comprehensive (loss) income, net of tax (21.9 ) (17.7 ) (18.1 ) 35.8 (21.9 ) Comprehensive income (loss) $ 137.9 $ 174.3 $ 47.6 $ (221.9 ) $ 137.9 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Balance Sheet As of December 31, 2016 (in millions) Parent Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 0.4 $ 2.3 $ 51.1 $ — $ 53.8 Restricted cash — — 6.4 — 6.4 Accounts receivable — net 0.5 — 86.1 (4.9 ) 81.7 Inventories — net — 74.3 71.3 — 145.6 Prepaids and other current assets 0.9 4.5 8.5 — 13.9 Current assets held for sale — 2.3 4.5 — 6.8 Total current assets 1.8 83.4 227.9 (4.9 ) 308.2 Property, plant and equipment — net 1.2 67.9 40.0 — 109.1 Goodwill — 832.4 12.9 — 845.3 Other intangible assets — net — 423.5 60.9 — 484.4 Intercompany long-term note receivable — 20.0 — (20.0 ) — Due from affiliates — 3,085.8 — (3,085.8 ) — Investment in subsidiaries 3,780.3 — — (3,780.3 ) — Other non-current assets 2.7 5.1 19.7 (5.4 ) 22.1 Total assets $ 3,786.0 $ 4,518.1 $ 361.4 $ (6,896.4 ) $ 1,769.1 Liabilities and equity Current liabilities: Accounts payable $ 0.1 $ 64.6 $ 48.6 $ (4.9 ) $ 108.4 Accrued expenses and other liabilities 14.1 97.5 62.9 — 174.5 Current portion of capital leases — 0.5 1.1 — 1.6 Product warranties — 18.4 9.5 — 27.9 Current liabilities held for sale — — 0.7 — 0.7 Total current liabilities 14.2 181.0 122.8 (4.9 ) 313.1 Long-term debt and capital leases 1,277.0 1.7 — — 1,278.7 Deferred income taxes 120.5 — 17.3 — 137.8 Pension and postretirement health obligations 47.9 4.9 — (5.4 ) 47.4 Intercompany long-term note payable 15.7 — 4.3 (20.0 ) — Due to affiliates 2,344.8 — 741.0 (3,085.8 ) — Investment in subsidiaries — 524.6 — (524.6 ) — Other long-term liabilities 9.4 25.6 0.6 — 35.6 Total non-current liabilities 3,815.3 556.8 763.2 (3,635.8 ) 1,499.5 Total (deficit) equity: Total (deficit) equity (43.5 ) 3,780.3 (524.6 ) (3,255.7 ) (43.5 ) Total liabilities and equity $ 3,786.0 $ 4,518.1 $ 361.4 $ (6,896.4 ) $ 1,769.1 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Balance Sheet As of December 31, 2015 (in millions) Parent Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 3.5 $ 28.5 $ — $ 32.0 Restricted cash — — 0.6 — 0.6 Accounts receivable — net — — 73.4 (9.6 ) 63.8 Intercompany interest receivable — — 4.2 (4.2 ) — Intercompany short-term note receivable — — 31.0 (31.0 ) — Inventories — net — 80.2 65.7 — 145.9 Prepaids and other current assets 1.2 2.3 9.0 (2.2 ) 10.3 Total current assets 1.2 86.0 212.4 (47.0 ) 252.6 Property, plant and equipment — net 0.9 71.2 44.3 — 116.4 Goodwill — 832.4 13.4 — 845.8 Other intangible assets — net — 452.1 67.5 — 519.6 Intercompany long-term note receivable — — 42.4 (42.4 ) — Due from affiliates — 3,074.9 — (3,074.9 ) — Investment in subsidiaries 3,579.8 — — (3,579.8 ) — Other non-current assets — 3.1 71.8 (59.0 ) 15.9 Long-term assets held for sale — 3.7 — — 3.7 Total assets $ 3,581.9 $ 4,523.4 $ 451.8 $ (6,803.1 ) $ 1,754.0 Liabilities and equity Current liabilities: Accounts payable $ — $ 81.8 $ 49.5 $ (9.6 ) $ 121.7 Accrued expenses and other liabilities 0.1 100.1 66.9 (2.2 ) 164.9 Current portion of capital leases — 0.4 — — 0.4 Intercompany interest payable — 4.2 — (4.2 ) — Intercompany short-term note payable — 31.0 — (31.0 ) — Product warranties — 23.8 10.5 — 34.3 Total current liabilities 0.1 241.3 126.9 (47.0 ) 321.3 Long-term capital leases — 2.3 — — 2.3 Deferred income taxes 155.4 — 63.5 (51.0 ) 167.9 Pension and postretirement health obligations 35.0 6.3 — (8.0 ) 33.3 Intercompany long-term note payable — 42.4 — (42.4 ) — Due to affiliates 2,176.9 — 898.0 (3,074.9 ) — Investment in subsidiaries — 638.6 — (638.6 ) — Other long-term liabilities 5.8 12.7 2.0 — 20.5 Total non-current liabilities 2,373.1 702.3 963.5 (3,814.9 ) 224.0 Total (deficit) equity: Total (deficit) equity 1,208.7 3,579.8 (638.6 ) (2,941.2 ) 1,208.7 Total liabilities and equity $ 3,581.9 $ 4,523.4 $ 451.8 $ (6,803.1 ) $ 1,754.0 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Cash Flows For the year ended December 31, 2016 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash (used for) provided by operating activities $ (102.7 ) $ 111.5 $ 113.2 $ — $ 122.0 Cash flows from investing activities Capital expenditures (1.0 ) (8.0 ) (7.0 ) — (16.0 ) Changes in restricted cash — — (6.0 ) — (6.0 ) Proceeds from dispositions — — 1.6 — 1.6 Intercompany investment — (104.4 ) (79.4 ) 183.8 — Net cash provided by (used for) investing activities (1.0 ) (112.4 ) (90.8 ) 183.8 (20.4 ) Cash flows from financing activities Proceeds from long-term debt and capital leases 1,499.5 0.2 1.4 — 1,501.1 Repayments on long-term debt and capital leases (186.0 ) (0.5 ) (0.3 ) — (186.8 ) Debt issuance costs (41.3 ) — — — (41.3 ) Dividend paid to MTW (1,362.0 ) — — — (1,362.0 ) Net transactions with MTW (6.1 ) — — — (6.1 ) Exercises of stock options 16.2 — — — 16.2 Intercompany financing 183.8 — — (183.8 ) — Net cash (used for) provided by financing activities 104.1 (0.3 ) 1.1 (183.8 ) (78.9 ) Effect of exchange rate changes on cash — — (0.9 ) — (0.9 ) Net increase in cash and cash equivalents 0.4 (1.2 ) 22.6 — 21.8 Balance at beginning of period — 3.5 28.5 — 32.0 Balance at end of period $ 0.4 $ 2.3 $ 51.1 $ — $ 53.8 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Cash Flows For the year ended December 31, 2015 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash provided by operating activities $ 376.9 $ (137.6 ) $ (96.3 ) $ — $ 143.0 Cash flows from investing activities Capital expenditures (0.8 ) (6.5 ) (5.9 ) — (13.2 ) Changes in restricted cash — — (0.6 ) — (0.6 ) Business acquisitions, net of cash acquired — — (5.3 ) — (5.3 ) Proceeds from sale of business — 78.2 — — 78.2 Intercompany investment (193.2 ) — — 193.2 — Net cash used for investing activities (194.0 ) 71.7 (11.8 ) 193.2 59.1 Cash flows from financing activities Proceeds from capital leases — 0.5 — — 0.5 Repayments on capital leases — (0.7 ) — — (0.7 ) Net transactions with MTW (182.9 ) — — — (182.9 ) Intercompany financing — 66.9 126.3 (193.2 ) — Net cash used for financing activities (182.9 ) 66.7 126.3 (193.2 ) (183.1 ) Effect of exchange rate changes on cash — — (3.5 ) — (3.5 ) Net increase in cash and cash equivalents — 0.8 14.7 — 15.5 Balance at beginning of period — 2.7 13.8 — 16.5 Balance at end of period $ — $ 3.5 $ 28.5 $ — $ 32.0 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Cash Flows For the year ended December 31, 2014 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash provided by operating activities $ 159.1 $ (54.0 ) $ 95.1 $ — $ 200.2 Cash flows from investing activities Capital expenditures — (18.3 ) (7.0 ) — (25.3 ) Intercompany investment — — (82.7 ) 82.7 — Net cash used for investing activities — (18.3 ) (89.7 ) 82.7 (25.3 ) Cash flows from financing activities Proceeds from capital leases — 3.1 — — 3.1 Repayments on capital leases — (3.4 ) — — (3.4 ) Net transactions with MTW (166.7 ) — — — (166.7 ) Intercompany financing 7.6 75.1 — (82.7 ) — Net cash used for financing activities (159.1 ) 74.8 — (82.7 ) (167.0 ) Effect of exchange rate changes on cash — — (1.0 ) — (1.0 ) Net increase in cash and cash equivalents — 2.5 4.4 — 6.9 Balance at beginning of period — 0.2 9.4 — 9.6 Balance at end of period $ — $ 2.7 $ 13.8 $ — $ 16.5 |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | MANITOWOC FOODSERVICE, INC. Schedule II: Valuation and Qualifying Accounts For the years ended December 31, 2016, 2015 and 2014 (in millions) Balance at Charge to Utilization of Other, Primarily Balance at end Year End December 31, 2014 Allowance for doubtful accounts $ 3.1 $ 4.2 $ (3.2 ) $ (0.2 ) $ 3.9 Deferred tax valuation allowance $ 80.2 $ 36.3 $ (0.4 ) $ (3.0 ) $ 113.1 Year End December 31, 2015 Allowance for doubtful accounts $ 3.9 $ 2.5 $ (2.2 ) $ (0.2 ) $ 4.0 Deferred tax valuation allowance $ 113.1 $ (0.5 ) $ (28.2 ) $ (4.3 ) $ 80.1 Year End December 31, 2016 Allowance for doubtful accounts $ 4.0 $ 1.7 $ (0.3 ) $ (0.1 ) $ 5.3 Deferred tax valuation allowance $ 80.1 $ 2.7 $ (18.2 ) $ (4.7 ) $ 59.9 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | All short-term investments purchased with an original maturity of three months or less are considered cash equivalents. |
Inventories | Inventories are valued at the lower of cost or market value. Approximately 91.2% and 90.3% of the Company's inventories at December 31, 2016 and 2015 , respectively, were valued using the first-in, first-out ("FIFO") method. The remaining inventories were valued using the last-in, first-out ("LIFO") method. If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $3.5 million and $3.4 million at December 31, 2016 and 2015 , respectively. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. |
Goodwill and Other Intangible Assets | The Company accounts for its goodwill and other intangible assets under the guidance of Accounting Standards Codification ("ASC") Subtopic 350-10, "Intangibles — Goodwill and Other." Under ASC Subtopic 350-10, goodwill is not amortized, but it is tested for impairment annually, or more frequently, as events dictate. See additional discussion of impairment testing under "Impairment of Long-Lived Assets," below. The Company's other intangible assets with indefinite lives, including trademarks, are not amortized, but are also tested for impairment annually, or more frequently, as events dictate. The Company's other intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets are amortized straight-line over the following estimated useful lives: Useful lives Patents 10-20 years Engineering drawings 15 years Customer relationships 10-20 years |
Property, Plant and Equipment | Property, plant and equipment are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. Property, plant and equipment are depreciated over the following estimated useful lives: Years Building and improvements 2 - 40 Machinery, equipment and tooling 2 - 20 Furniture and fixtures 3 - 15 Computer hardware and software 2 - 7 |
Impairment of Long-Lived Assets | The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC Subtopic 360-10-5. ASC Subtopic 360-10-5 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and to evaluate the asset group against the sum of the undiscounted future cash flows. For property, plant and equipment and other long-lived assets, other than goodwill and other indefinite lived intangible assets, the Company performs undiscounted operating cash flow analyses to determine impairments. If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the fair value to the net book value of the assets. Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell. Each year, as of June 30, the Company tests for impairment of goodwill according to a two-step approach. In the first step, the Company estimates the fair values of its reporting units using the present value of future cash flows approach. If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit used in the first step less the fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair market value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill. In addition, goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. For other indefinite lived intangible assets, the impairment test consists of a comparison of the fair value of the intangible assets to their carrying amount. See Note 9, "Goodwill and Other Intangible Assets," for further details on the Company's impairment assessments. |
Warranties | Estimated warranty costs are recorded in cost of sales at the time of sale of the products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products. These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience. |
Environmental Liabilities | The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Such accruals are adjusted as information develops or circumstances change. |
Product Liabilities | The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions. The reserve is based upon two estimates. First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company's best judgment and the advice of legal counsel. These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the case. Second, the Company determines the amount of additional reserve required to cover incurred but not reported product liability obligations and to account for possible adverse development of the established case reserves. This analysis is performed twice annually. |
Foreign Currency Translation | The financial statements of the Company's non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items. Resulting translation adjustments are recorded to "Accumulated Other Comprehensive Income" ("AOCI") as a component of equity. |
Derivative Financial Instruments and Hedging Activities | The Company entered into derivative instruments to hedge foreign exchange and commodity exposure associated with aluminum, copper, steel and natural gas prices. The Company has adopted written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited. The Company uses financial instruments to manage the market risk from changes in foreign exchange rates and commodities. The Company follows the guidance in accordance with ASC Subtopic 815-10, "Derivatives and Hedging." The fair values of all derivatives are recorded in the accompanying consolidated balance sheets. The change in a derivative’s fair value is recorded each period in current earnings or AOCI depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction. During the years ended December 31, 2016 , 2015 and 2014 , minimal amounts were recognized in earnings due to ineffectiveness of certain commodity hedges. The amount reported as derivative instrument fair market value adjustment in the AOCI account within the accompanying consolidated statements of comprehensive income (loss) represents the net gain (loss) on foreign currency exchange contracts and commodity contracts designated as cash flow hedges, net of income taxes. |
Stock-Based Compensation | MFS employees have historically participated in MTW's stock-based compensation plans for the periods prior to the Spin-Off. Stock-based compensation expense has been allocated to the MFS business based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, the MFS business continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the MFS employees. Accounting guidance requires that the cost resulting from all stock-based payment transactions be recognized in the financial statements. Guidance as establishes fair value as the measurement objective in accounting for stock-based payment arrangements and requires all companies to apply a fair-value-based measurement method in accounting generally for all stock-based payment transactions with employees. Stock-based compensation expense related to MFS employees of $6.3 million , $2.3 million and $2.4 million has been recorded in the accompanying consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Revenue Recognition | Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered. Shipping and handling fees are reflected in net sales and shipping and handling costs are reflected in cost of sales in the accompanying consolidated statements of operations. |
Research and Development | Research and development costs are charged to expense as incurred and amounted to $35.2 million , $33.2 million and $31.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Research and development costs include salaries, materials, contractor fees and other administrative costs. |
Income Taxes | The Company recognizes deferred tax assets and liabilities for the expected future income tax consequences of events that have been recognized in the accompanying consolidated financial statements. Deferred tax assets and liabilities are determined based on the temporary difference between financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the Company will not realize the benefit of such assets. The Company evaluates its uncertain tax positions as new information becomes available. Tax benefits are recognized to the extent a position is more likely than not to be sustained upon examination by the taxing authority. |
Comprehensive Income (Loss) | Comprehensive income (loss) includes, in addition to net earnings, other items that are reported as direct adjustments to equity. Currently, these items are foreign currency translation adjustments, employee postretirement benefit adjustments and the change in fair value of certain derivative instruments. |
Concentration of Credit Risk | Credit extended to customers through trade accounts receivable potentially subjects MFS to risk. This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas. However, a significant amount of MFS' receivables are with distributors and large companies in the foodservice and beverage industry. MFS currently does not foresee a significant credit risk associated with these individual groups of receivables, but continues to monitor the exposure, if any. |
Recent Accounting Changes and Pronouncements | In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which removes the second step of the annual goodwill impairment test. ASU 2017-04 is effective for fiscal years, and interim periods within those fiscal years, for annual impairment tests beginning after December 15, 2019. Early adoption is permitted in any interim or annual reporting period for impairment tests performed after January 1, 2017 and the amendments in this ASU should be applied prospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," which clarifies the accounting guidance to assist entities in evaluating whether a transaction should be accounted for as acquisitions of assets or businesses. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in certain instances and the amendments in this ASU should be applied prospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which will require an entity to reconcile the changes in restricted cash as part of total cash and cash equivalents in its statements of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in any interim or annual reporting period and the amendments in this ASU should be applied retrospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies the accounting guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in any interim or annual reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, "Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment award transactions. This ASU requires that all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit on the income statement. The excess tax items should be classified with other income tax cash flows as an operating activity. This ASU also allows an entity to account for forfeitures when they occur rather than the current U.S. GAAP practice where an entity makes an entity-wide accounting policy election to estimate the number of awards that are expected to vest. This ASU is effective for the Company on January 1, 2017 and the Company will continue to estimate the number of awards that are expected to vest. The adoption of this ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. ASU 2016-02 requires a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and provides certain practical expedients that companies may elect. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU provides guidance for the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and early adoption is not permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In August 2015, the FASB issued ASU 2015-15, "Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." This ASU clarifies the guidance related to accounting for debt issuance costs related to line-of-credit arrangements. In April 2015, the FASB issued ASU 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. With the issuance of ASU 2015-15, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted ASU 2015-15 and ASU 2015-03 in the first quarter of fiscal year 2016 and its impact is presented in the accompanying consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This ASU changes the guidance on accounting for inventory accounted for on a first-in first-out ("FIFO") basis. Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out ("LIFO") basis. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016 with early application permitted. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU 2015-05, "Intangibles—Goodwill and Other—Internal-use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification ("ASC") Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements or related disclosures. In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 820)—Amendments to the Consolidation Analysis." This ASU amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements or related disclosures. In January 2015, the FASB issued ASU 2015-01, "Income Statement—Extraordinary and Unusual Items." This ASU eliminates from U.S. GAAP the concept of extraordinary items. This ASU is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements or related disclosures. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." This update provides guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and to provide related footnote disclosures. The Company adopted this accounting guidance in the fourth quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements or related disclosures. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." This ASU provides a principles-based approach to revenue recognition to record the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. The revenue standard is effective for the first interim period within fiscal years beginning after December 15, 2017 (as updated by the FASB in August 2015 in ASU 2015-14 and as updated by ASU-2016-20, ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12), and can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application along with additional disclosures. Early adoption is permitted as of the original effective date—the first interim period within fiscal years beginning after December 15, 2016. The Company plans to adopt this standard on January 1, 2018 and is evaluating its customizable contracts, information technology contracts and other customer contracts that may impact its consolidated financial statements and related disclosures. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Other Intangible Assets | Other intangible assets are amortized straight-line over the following estimated useful lives: Useful lives Patents 10-20 years Engineering drawings 15 years Customer relationships 10-20 years |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Property, plant and equipment are depreciated over the following estimated useful lives: Years Building and improvements 2 - 40 Machinery, equipment and tooling 2 - 20 Furniture and fixtures 3 - 15 Computer hardware and software 2 - 7 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy | The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and 2015 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Fair Value as of December 31, 2016 (in millions) Level 1 Level 2 Level 3 Total Current assets: Foreign currency exchange contracts $ — $ 0.6 $ — $ 0.6 Commodity contracts — 0.9 — 0.9 Total current assets at fair value — 1.5 — 1.5 Non-current assets: Commodity contracts — 0.2 — 0.2 Total non-current assets at fair value — 0.2 — 0.2 Total assets at fair value $ — $ 1.7 $ — $ 1.7 Current liabilities: Foreign currency exchange contracts $ — $ 1.0 $ — $ 1.0 Commodity contracts — 0.1 — 0.1 Total current liabilities at fair value — 1.1 — 1.1 Total liabilities at fair value $ — $ 1.1 $ — $ 1.1 Fair Value as of December 31, 2015 (in millions) Level 1 Level 2 Level 3 Total Total assets at fair value $ — $ — $ — $ — Current liabilities: Foreign currency exchange contracts $ — $ 0.1 $ — $ 0.1 Commodity contracts — 3.1 — 3.1 Total current liabilities at fair value — 3.2 — 3.2 Non-current liabilities: Commodity contracts — 0.4 — 0.4 Total non-current liabilities at fair value — 0.4 — 0.4 Total liabilities at fair value $ — $ 3.6 $ — $ 3.6 |
Derivative Financial Instrume39
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative [Line Items] | |
Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded as assets in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows: ASSET DERIVATIVES (in millions) Balance Sheet Location Fair Value 2016 2015 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.6 $ — Commodity contracts Prepaids and other current assets 0.9 — Commodity contracts Other non-current assets 0.2 — Total derivatives designated as hedging instruments $ 1.7 $ — Total asset derivatives $ 1.7 $ — |
Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded as assets in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows: ASSET DERIVATIVES (in millions) Balance Sheet Location Fair Value 2016 2015 Derivatives designated as hedging instruments: Foreign currency exchange contracts Prepaids and other current assets $ 0.6 $ — Commodity contracts Prepaids and other current assets 0.9 — Commodity contracts Other non-current assets 0.2 — Total derivatives designated as hedging instruments $ 1.7 $ — Total asset derivatives $ 1.7 $ — The fair value of outstanding derivative contracts recorded as liabilities in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows: LIABILITY DERIVATIVES (in millions) Balance Sheet Location Fair Value 2016 2015 Derivatives designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.8 $ 0.1 Commodity contracts Accrued expenses and other liabilities 0.1 2.4 Commodity contracts Other long-term liabilities — 0.3 Total derivatives designated as hedging instruments $ 0.9 $ 2.8 Derivatives NOT designated as hedging instruments: Foreign currency exchange contracts Accrued expenses and other liabilities $ 0.2 $ — Commodity contracts Accrued expenses and other liabilities — 0.7 Commodity contracts Other long-term liabilities — 0.1 Total derivatives NOT designated as hedging instruments $ 0.2 $ 0.8 Total liability derivatives $ 1.1 $ 3.6 |
Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations for Gains or Losses Initially Recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet | The effects of derivative instruments on the consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014 for gains or losses initially recognized in "Accumulated other comprehensive loss" ("AOCI") in the accompanying consolidated balance sheets were as follows: Derivatives in cash flow hedging relationships (in millions) Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) Location of gain (loss) reclassified from AOCI into income (effective portion) Amount of gain (loss) reclassified from AOCI into income (effective portion) 2016 2015 2014 2016 2015 2014 Foreign currency exchange contracts $ (0.1 ) $ 0.3 $ (0.1 ) Cost of sales $ — $ (1.4 ) $ (0.9 ) Commodity contracts 2.7 (1.1 ) (0.5 ) Cost of sales (1.5 ) (3.4 ) (0.3 ) Total $ 2.6 $ (0.8 ) $ (0.6 ) $ (1.5 ) $ (4.8 ) $ (1.2 ) Derivatives relationships (in millions) Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) 2016 2015 2014 Commodity contracts $ — $ 0.1 $ 0.1 Cost of sales Total $ — $ 0.1 $ 0.1 Derivatives NOT designated as hedging instruments (in millions) Amount of gain (loss) recognized in income on derivative Location of gain (loss) recognized in income on derivative 2016 2015 2014 Foreign currency exchange contracts $ (0.2 ) $ 0.1 $ — Other expense (income) — net Commodity contracts — short-term 0.8 (0.7 ) — Other expense (income) — net Commodity contracts — long-term — (0.1 ) — Other expense (income) — net Total $ 0.6 $ (0.7 ) $ — |
Designated as Hedging Instrument | |
Derivative [Line Items] | |
Schedule of Outstanding Commodity and Currency Forward Contracts | As of December 31, 2016 , 2015 and 2014, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions: Units Hedged Commodity 2016 2015 2014 Unit Type Aluminum 1,663 1,215 1,657 MT Cash flow Copper 746 472 820 MT Cash flow Natural gas 56,416 49,396 56,792 MMBtu Cash flow Steel 8,663 11,073 12,634 Short tons Cash flow Units Hedged Currency 2016 2015 2014 Type Canadian Dollar 26,130,000 587,556 7,984,824 Cash flow European Euro 11,261,848 231,810 — Cash flow British Pound 4,191,763 113,115 — Cash flow Mexican Peso 148,200,000 28,504,800 52,674,383 Cash flow Thailand Baht 23,231,639 — — Cash flow Singapore Dollar 4,375,000 — — Cash flow |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Schedule of Outstanding Commodity and Currency Forward Contracts | As of December 31, 2016 , 2015 and 2014, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments: Units Hedged Commodity 2016 2015 2014 Unit Type Aluminum 28 — — MT Cash flow Steel 340 — — Short tons Cash flow Units Hedged Currency 2016 2015 2014 Recognized Location Purpose Canadian Dollar — 1,117,850 2,516 Other expense (income) — net Accounts payable and receivable settlement European Euro 16,000,000 — 2,172,068 Other expense (income) — net Accounts payable and receivable settlement British Pound 8,192,692 — — Other expense (income) — net Accounts payable and receivable settlement Mexican Peso — — 3,151,000 Other expense (income) — net Accounts payable and receivable settlement Swiss Franc 3,150,000 — — Other expense (income) — net Accounts payable and receivable settlement |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of the Components of Inventories | The components of inventories at December 31, 2016 and 2015 are summarized as follows: (in millions) 2016 2015 Inventories — gross: Raw materials $ 68.2 $ 70.7 Work-in-process 18.3 18.7 Finished goods 85.1 83.4 Total inventories — gross 171.6 172.8 Excess and obsolete inventory reserve (22.5 ) (23.5 ) Net inventories at FIFO cost 149.1 149.3 Excess of FIFO costs over LIFO value (3.5 ) (3.4 ) Inventories — net $ 145.6 $ 145.9 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of property, plant and equipment at December 31, 2016 and 2015 are summarized as follows: (in millions) 2016 2015 Land $ 7.3 $ 7.3 Building and improvements 91.3 94.3 Machinery, equipment and tooling 215.1 216.0 Furniture and fixtures 5.8 6.2 Computer hardware and software 52.9 51.2 Construction in progress 11.2 9.8 Total cost 383.6 384.8 Less accumulated depreciation (274.5 ) (268.4 ) Property, plant and equipment — net $ 109.1 $ 116.4 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill by Reportable Segment | The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2016 , 2015 and 2014 are as follows: (in millions) Americas EMEA APAC Total Gross balance as of December 31, 2014 $ 1,172.7 $ 208.4 $ 7.4 $ 1,388.5 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2014 $ 860.5 $ 4.9 $ 7.4 $ 872.8 Foreign currency impact — (0.1 ) (0.4 ) (0.5 ) Impact of acquisitions and divestitures (27.9 ) — 1.4 (26.5 ) Gross balance as of December 31, 2015 $ 1,144.8 $ 208.3 $ 8.4 $ 1,361.5 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2015 $ 832.6 $ 4.8 $ 8.4 $ 845.8 Foreign currency impact — (0.1 ) (0.4 ) (0.5 ) Gross balance as of December 31, 2016 $ 1,144.8 $ 208.2 $ 8.0 $ 1,361.0 Accumulated asset impairments (312.2 ) (203.5 ) — (515.7 ) Net balance as of December 31, 2016 $ 832.6 $ 4.7 $ 8.0 $ 845.3 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets other than Goodwill | The gross carrying amount and accumulated amortization of the Company's intangible assets other than goodwill are as follows as of December 31, 2016 and 2015 : 2016 2015 (in millions) Gross Accumulated Net Gross Accumulated Net Trademarks and tradenames $ 172.4 $ — $ 172.4 $ 175.1 $ — $ 175.1 Customer relationships 415.2 (171.4 ) 243.8 415.2 (150.4 ) 264.8 Patents 1.6 (1.6 ) — 1.7 (1.6 ) 0.1 Other intangibles 140.7 (72.5 ) 68.2 143.2 (63.6 ) 79.6 Total $ 729.9 $ (245.5 ) $ 484.4 $ 735.2 $ (215.6 ) $ 519.6 |
Schedule of Estimated Amortization of Intangible Assets | As of December 31, 2016, the estimated future amortization of intangible assets, other than goodwill, excluding the impact of any future acquisitions or divestitures is as follows: (in millions) Year ending December 31: 2017 $ 31.2 2018 31.2 2019 30.9 2020 30.7 2021 30.7 Thereafter 157.3 $ 312.0 |
Accounts Payable and Accrued 43
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses and other liabilities at December 31, 2016 and 2015 are summarized as follows: (in millions) 2016 2015 Accounts payable: Trade accounts payable $ 108.4 $ 121.7 Total accounts payable $ 108.4 $ 121.7 Accrued expenses and other liabilities: Interest payable $ 15.7 $ — Income taxes payable 2.5 7.3 Employee related expenses 29.8 24.5 Restructuring expenses 3.3 16.8 Profit sharing and incentives 14.2 3.9 Accrued rebates 56.0 49.9 Deferred revenue - current 4.4 3.8 Dividend payable to MTW — 10.2 Customer advances 7.4 2.9 Product liability 2.3 2.6 Miscellaneous accrued expenses 38.9 43.0 Total accrued expenses and other liabilities $ 174.5 $ 164.9 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Current Covenant Levels of the Financial Covenants Under the Senior Credit Facility | The current levels of the financial ratio covenants under the Senior Secured Credit Facilities and the Company's actual ratios for each quarter ended during 2016 are set forth below: Fiscal Quarter Ending Consolidated Total Leverage Ratio Level (less than) Actual Consolidated Total Leverage Ratio Consolidated Interest Coverage Ratio Level (greater than) Actual Consolidated Interest Coverage Ratio March 31, 2016 6.25:1.00 5.49:1.00 2.00:1.00 5.91:1.00 June 30, 2016 6.25:1.00 5.52:1.00 2.00:1.00 3.25:1.00 September 30, 2016 6.00:1.00 5.29:1.00 2.25:1.00 3.17:1.00 December 31, 2016 5.75:1.00 5.18:1.00 2.25:1.00 3.13:1.00 |
Schedule of Debt Redemption Prices | In addition, the Company may redeem the Senior Notes at its option, in whole or in part, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the 12-month period commencing on February 15 of the years set forth below: Year Percentage 2019 107.1 % 2020 104.8 % 2021 102.4 % 2022 and thereafter 100.0 % |
Schedule of Outstanding Debt | Outstanding debt at December 31, 2016 and 2015 is summarized as follows: (in millions) 2016 2015 Revolving credit facility $ 63.5 $ — Term Loan B 825.0 — Senior Notes due 2024 425.0 — Other 3.3 2.7 Total debt and capital leases, including current portion 1,316.8 2.7 Less current portion of capital leases (1.6 ) (0.4 ) Less unamortized debt issuance costs (36.5 ) — Total long-term debt and capital leases $ 1,278.7 $ 2.3 |
Maturities of Debt | Maturities of debt, excluding capital leases, are as follows as of December 31, 2016: (in millions) Year ending December 31: 2017 $ — 2018 — 2019 — 2020 — 2021 63.5 Thereafter 1,250.0 $ 1,313.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Earnings before Income Taxes | "Earnings before income taxes" in the accompanying consolidated statements of operations is comprised of the following for the years ended December 31, 2016, 2015 and 2014: (in millions) 2016 2015 2014 Domestic $ 30.5 $ 121.3 $ 121.8 Foreign 74.3 75.1 63.9 Total $ 104.8 $ 196.4 $ 185.7 |
Schedule of the Components of Income Taxes | "Income taxes" in the accompanying consolidated statements of operations is comprised of the following for the years ended December 31, 2016, 2015 and 2014: (in millions) 2016 2015 2014 Current: Federal and state $ 15.7 $ 51.1 $ 28.3 Foreign 19.5 18.2 15.1 Total current expense 35.2 69.3 43.4 Deferred: Federal and state (15.5 ) (27.9 ) (12.0 ) Foreign 5.6 (2.1 ) (5.5 ) Total deferred expense (9.9 ) (30.0 ) (17.5 ) Income taxes $ 25.3 $ 39.3 $ 25.9 |
Reconciliation of the U.S. Federal Statutory Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2016, 2015 and 2014: 2016 2015 2014 Federal income tax at statutory rate 35.0 % 35.0 % 35.0 % State income provision 1.5 1.4 1.4 Manufacturing and research incentives (1.9 ) (1.7 ) (1.7 ) Taxes on foreign income which differ from the U.S. statutory rate (8.1 ) (3.9 ) (2.4 ) Adjustments for unrecognized tax benefits (1.5 ) 0.1 4.3 Adjustments for valuation allowances 2.5 (13.8 ) 21.5 Capital loss generation — — (41.4 ) Business acquisitions and divestitures — 4.1 — Out of period adjustments (2.8 ) — — Other items (0.6 ) (1.2 ) (2.8 ) Effective tax rate 24.1 % 20.0 % 13.9 % |
Schedules of Significant Deferred Tax Assets and Liabilities | Significant components of the Company’s non-current deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows: (in millions) 2016 2015 Non-current deferred tax assets (liabilities): Inventories $ 7.2 $ 7.6 Accounts receivable 1.7 1.2 Property, plant and equipment (2.7 ) (2.8 ) Intangible assets (190.8 ) (218.9 ) Deferred employee benefits 19.2 15.7 Product warranty reserves 13.3 14.4 Product liability reserves 0.9 1.0 Loss carryforwards 43.8 84.9 Deferred revenue 1.3 1.1 Other 35.4 16.9 Non-current deferred tax liabilities (70.7 ) (78.9 ) Less valuation allowance (59.9 ) (80.1 ) Net non-current deferred tax liabilities $ (130.6 ) $ (159.0 ) Current and long-term tax assets and liabilities included in the accompanying consolidated balance sheets is comprised of the following as of December 31, 2016 and 2015: (in millions) 2016 2015 Income taxes receivable, included in prepaids and other current assets $ 2.9 $ 2.7 Deferred tax asset, included in other non-current assets $ 7.2 $ 8.9 Income taxes payable, included in accrued expenses and other liabilities $ (2.5 ) $ (7.3 ) Deferred income tax liability $ (137.8 ) $ (167.9 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the Company's unrecognized tax benefits is as follows for the years ended December 31, 2016, 2015 and 2014: (in millions) 2016 2015 2014 Balance at beginning of year $ 16.6 $ 16.6 $ 7.8 Additions based on tax positions related to the current year 1.8 0.2 14.1 Reductions based on settlements with taxing authorities — — (2.8 ) Reductions for equity adjustment (4.3 ) — — Reductions for lapse of statute (1.6 ) (0.2 ) (2.5 ) Balance at end of year $ 12.5 $ 16.6 $ 16.6 |
Other Expense (Income) - Net (T
Other Expense (Income) - Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Summary of the Components of Other Operating Income (Expense) | The components of "Other expense (income) — net" in the accompanying consolidated statements of operations for the years ended December 31, 2016 , 2015 and 2014 are summarized as follows: (in millions) 2016 2015 2014 Gain on sale of Kysor Panel Systems (1) $ — $ (9.9 ) $ — Gain on sale of investment property — (5.4 ) — Gain on acquisition of Thailand joint venture (2) — (4.9 ) — Amortization of deferred financing fees 4.8 — — Other (3) 4.3 (1.9 ) 2.1 Other expense (income) — net $ 9.1 $ (22.1 ) $ 2.1 (1) See Note 4, "Divestitures" for further discussion on the sale of Kysor Panel Systems. (2) See Note 3, "Acquisitions" for further discussion on the acquisition of the Thailand joint venture. (3) For the year ended December 31, 2014, $1.1 million of other expense relates to a pension obligation settled by the Company on a previously disposed entity as described in Note 4, "Divestitures." Excluding this item, other expense (income) — net consists primarily of foreign currency gains and losses. |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Components Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss as of December 31, 2016 and 2015 are as follows: (in millions) 2016 2015 Foreign currency translation $ (9.8 ) $ (7.9 ) Derivative instrument fair market value, net of income tax benefit of $0.0 and $0.9 0.8 (1.8 ) Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 and $0.3 (34.4 ) (34.8 ) $ (43.4 ) $ (44.5 ) A summary of the changes in accumulated other comprehensive loss, net of tax, by component for the years ended December 31, 2016 and 2015 are as follows: (in millions) Foreign Currency Translation Gains and Losses on Cash Flow Hedges Pension & Postretirement Total Balance at December 31, 2013 $ 34.2 $ (0.4 ) $ (32.6 ) $ 1.2 Other comprehensive loss before reclassifications (16.9 ) (1.4 ) (4.8 ) (23.1 ) Amounts reclassified from accumulated other comprehensive income — 0.8 0.4 1.2 Net current period other comprehensive loss (16.9 ) (0.6 ) (4.4 ) (21.9 ) Balance at December 31, 2014 17.3 (1.0 ) (37.0 ) (20.7 ) Other comprehensive (loss) income before reclassifications (25.2 ) (3.8 ) 1.1 (27.9 ) Amounts reclassified from accumulated other comprehensive income — 3.0 1.1 4.1 Net current period other comprehensive (loss) income (25.2 ) (0.8 ) 2.2 (23.8 ) Balance at December 31, 2015 (7.9 ) (1.8 ) (34.8 ) (44.5 ) Other comprehensive (loss) income before reclassifications (1.9 ) 1.7 (1.1 ) (1.3 ) Amounts reclassified from accumulated other comprehensive income — 0.9 1.5 2.4 Net current period other comprehensive (loss) income (1.9 ) 2.6 0.4 1.1 Balance at December 31, 2016 $ (9.8 ) $ 0.8 $ (34.4 ) $ (43.4 ) |
Reclassification out of Accumulated Other Comprehensive Income | A reconciliation of the reclassifications out of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2016 is as follows: (in millions) Amount Reclassified from Accumulated Other Comprehensive Income Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gains and losses on cash flow hedges: Foreign currency exchange contracts $ — Cost of sales Commodity contracts (1.5 ) Cost of sales (1.5 ) Total before tax 0.6 Tax expense $ (0.9 ) Net of tax Amortization of pension and postretirement items: Amortization of prior service cost $ — (a) Actuarial losses (2.5 ) (a) (2.5 ) Total before tax 1.0 Tax benefit $ (1.5 ) Net of tax Total reclassifications for the period $ (2.4 ) Net of tax (a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details). A reconciliation of the reclassifications out of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2015 is as follows: (in millions) Amount Reclassified from Accumulated Other Comprehensive Income Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Gains and losses on cash flow hedges: Foreign currency exchange contracts $ (1.4 ) Cost of sales Commodity contracts (3.4 ) Cost of sales (4.8 ) Total before tax 1.8 Tax expense $ (3.0 ) Net of tax Amortization of pension and postretirement items: Amortization of prior service cost $ — (a) Actuarial losses (1.1 ) (a) (1.1 ) Total before tax — Tax benefit $ (1.1 ) Net of tax Total reclassifications for the period $ (4.1 ) Net of tax (a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details). |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of the Company's Stock Option Activity | A summary of the Company's stock option activity is as follows (in millions, except weighted average exercise price per share): Shares Weighted Aggregate Options outstanding as of January 1, 2016 1.4 $ 17.70 Granted 0.3 13.56 Exercised (0.1 ) 8.71 Cancelled (0.2 ) 19.41 Options outstanding as of December 31, 2016 1.4 $ 13.69 $ 9.3 Options exercisable as of December 31, 2016 0.8 $ 13.16 $ 6.2 |
Schedule of the Options Outstanding and Exercisable by Range of Exercise Prices | The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2016 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price): Range of Exercise Price Outstanding Weighted Weighted Exercisable Weighted $0.00 - $5.00 0.2 2.2 $ 3.51 0.2 $ 3.51 $5.01 - $10.00 0.2 3.1 9.04 0.2 9.04 $10.01 - $15.00 0.6 8.3 13.36 0.1 13.36 $15.01 - $20.00 0.2 6.2 16.53 0.1 16.08 $20.01 - $25.00 0.1 3.5 23.32 0.1 23.37 $25.01+ 0.1 1.1 31.27 0.1 31.27 1.4 5.8 $ 13.69 0.8 $ 13.16 |
Schedule of the Assumptions Used to Estimate the Fair Value of Each Option Grant | The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing method with the following assumptions: 2016 2015 2014 Expected life (years) 6.0 6.0 6.0 Risk-free interest rate 1.6 % 1.8 % 1.9 % Expected volatility 39.0 % 56.0 % 55.0 % Expected dividend yield — % 0.3 % 0.4 % |
Summary of Activity for Restricted Stock Units | A summary of activity for restricted stock units for the year ended December 31, 2016 is as follows (in millions, except weighted average grant date fair value): Shares Weighted Unvested as of January 1, 2016 0.2 $ 24.50 Granted 0.7 15.20 Vested — — Forfeited — — Unvested as of December 31, 2016 0.9 $ 17.20 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Summary of Warranty Activity | Below is a table summarizing the warranty activity for the years ended December 31, 2016 and 2015 : (in millions) 2016 2015 Balance at the beginning of the period $ 40.0 $ 42.0 Accruals for warranties issued 22.1 24.2 Settlements made (in cash or in kind) (25.1 ) (25.2 ) Currency translation impact (0.7 ) (1.0 ) Balance at the end of the period $ 36.3 $ 40.0 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Rollforward of All Restructuring Activities | The following is a rollforward of all restructuring activities related to the Company for the year ended December 31, 2016 (in millions): (in millions) 2016 2015 Balance at January 1 $ 16.8 $ 15.6 Restructuring charges 2.5 4.6 Use of reserve (4.9 ) (3.4 ) Balance at December 31 $ 14.4 $ 16.8 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Period Benefit Costs | The components of periodic benefit costs for the Direct Plans for the years ended December 31, 2016 , 2015 and 2014 are as follows: Pension Plans Postretirement Health (in millions) 2016 2015 2014 2016 2015 2014 Service cost - benefits earned during the year $ 0.2 $ 0.4 $ 0.5 $ — $ — $ — Interest cost of projected benefit obligation 8.3 6.5 8.1 0.4 0.1 0.2 Expected return on assets (6.2 ) (5.4 ) (7.1 ) — — — Amortization of prior service cost — — — — — (0.3 ) Amortization of actuarial net (gain) loss 2.5 1.2 0.9 — (0.1 ) (0.1 ) Curtailment gain recognized — — — — — — Net periodic benefit cost $ 4.8 $ 2.7 $ 2.4 $ 0.4 $ — $ (0.2 ) Weighted average assumptions: Discount rate 3.9 % 3.5 % 4.4 % 3.9 % 3.7 % 4.5 % Expected return on plan assets 3.7 % 3.5 % 4.5 % N/A N/A N/A Rate of compensation increase 4.0 % 4.0 % 4.0 % 1.5 % 1.5 % 1.5 % |
Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status | The following is a reconciliation of the changes in benefit obligation, the changes in plan assets and the funded status of the Direct Plans as of December 31, 2016 and 2015 : Pension Plans Postretirement (in millions) 2016 2015 2016 2015 Change in Benefit Obligation Benefit obligation, beginning of year $ 177.2 $ 195.0 $ 3.2 $ 2.8 Service cost 0.2 0.4 — — Interest cost 8.3 6.5 0.4 0.1 Participant contributions — — 0.4 0.3 Plan combinations 55.6 — 6.8 — Actuarial loss (gain) 4.1 (5.5 ) — 0.7 Currency translation adjustment (29.3 ) (8.8 ) — (0.2 ) Benefits paid (12.2 ) (10.4 ) (1.8 ) (0.5 ) Benefit obligation, end of year $ 203.9 $ 177.2 $ 9.0 $ 3.2 Change in Plan Assets Fair value of plan assets, beginning of year 147.9 162.1 — — Actual return on plan assets 14.1 0.6 — — Employer contributions 6.1 3.1 1.4 0.2 Participant contributions — — 0.4 0.3 Plan combinations 34.1 — — — Currency translation adjustment (26.2 ) (7.5 ) — — Benefits paid (12.2 ) (10.4 ) (1.8 ) (0.5 ) Fair value of plan assets, end of year 163.8 147.9 — — Funded status $ (40.1 ) $ (29.3 ) $ (9.0 ) $ (3.2 ) Amounts Recognized in the Consolidated Balance Sheet at December 31 Pension obligation (1) $ (40.1 ) $ (29.3 ) $ — $ — Postretirement health and other benefit obligations (2) — — (9.0 ) (3.2 ) Net amount recognized $ (40.1 ) $ (29.3 ) $ (9.0 ) $ (3.2 ) Weighted-Average Assumptions Discount rate 3.1 % 3.7 % 3.5 % 3.9 % Rate of compensation increase N/A 4.0 % 1.5 % 1.5 % (1) As of December 31, 2016, the short-term portion of the pension obligation and postretirement health and other benefit obligation of $0.7 million and $1.0 million, respectively, are included in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets. |
Amounts Recognized in Accumulated Other Comprehensive Income | Amounts recognized in accumulated other comprehensive income as of December 31, 2016 and 2015 , consist of the following: Pension Plans Postretirement (in millions) 2016 2015 2016 2015 Net actuarial gain (loss) $ (40.5 ) $ (35.1 ) $ (0.5 ) $ — Total amount recognized $ (40.5 ) $ (35.1 ) $ (0.5 ) $ — |
Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions | The following table summarizes the sensitivity of our December 31, 2016 retirement obligations and 2016 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions): Change in assumption: Estimated increase Estimated increase Estimated increase Estimated increase 0.5% increase in discount rate $ (0.4 ) $ (13.4 ) $ — $ (0.3 ) 0.5% decrease in discount rate 0.4 14.5 — 0.3 0.5% increase in long-term return on assets (0.8 ) N/A N/A N/A 0.5% decrease in long-term return on assets 0.8 N/A N/A N/A 1% increase in medical trend rates N/A N/A 0.1 0.6 1% decrease in medical trend rates N/A N/A (0.1 ) (0.5 ) |
Schedule of the Weighted-Average Asset Allocations of the Pension Plans | The weighted-average asset allocations of the pension plans at December 31, 2016 and 2015 , by asset category are as follows 2016 2015 Equity Securities 20.8 % 10.2 % Debt Securities 34.5 % 28.9 % Other 44.7 % 60.9 % 100.0 % 100.0 % |
Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class | The actual allocations for the pension assets at December 31, 2016 , and target allocations by asset class, are as follows: Target Allocations Weighted Average Asset Allocations Equity Securities 20.3 % 20.8 % Debt Securities 33.8 % 34.5 % Other 45.9 % 44.7 % |
Schedule of Plan Assets Using the Fair Value Hierarchy | The following table presents our plan assets using the fair value hierarchy as of December 31, 2016 and 2015 . The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. December 31, 2016 Assets (in millions) Quoted Prices in Significant Other Unobservable Total Cash $ 1.0 $ — $ — $ 1.0 Insurance group annuity contracts — — 72.2 72.2 Common/collective trust funds — Government, corporate and other non-government debt — 51.6 — 51.6 Common/collective trust funds — Corporate equity — 34.1 — 34.1 Common/collective trust funds — Customized strategy — 4.9 — 4.9 Total $ 1.0 $ 90.6 $ 72.2 $ 163.8 December 31, 2015 Assets (in millions) Quoted Prices in Significant Other Unobservable Total Cash $ 0.3 $ — $ — $ 0.3 Insurance group annuity contracts — — 89.9 89.9 Common/collective trust funds — Government, corporate and other non-government debt — 36.7 — 36.7 Common/collective trust funds — Corporate equity — 15.1 — 15.1 Common/collective trust funds — Customized strategy — 5.9 — 5.9 Total $ 0.3 $ 57.7 $ 89.9 $ 147.9 |
Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year | A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows: Insurance Contracts (in millions) 2016 2015 Beginning Balance $ 89.9 $ 98.9 Actual return on assets 2.5 0.9 Benefit payments (4.8 ) (5.4 ) Foreign currency impact (15.4 ) (4.5 ) Ending Balance $ 72.2 $ 89.9 |
Schedule of Projected Benefit Payments from the Plans | Projected benefit payments from the plans as of December 31, 2016 are estimated as follows: (in millions) Pension Plans Postretirement 2017 $ 11.7 $ 1.0 2018 12.0 1.1 2019 12.4 1.1 2020 12.9 1.0 2021 13.2 0.9 2022-2026 71.9 3.6 |
Fair Value of Plan Assets for Which the Accumulated Benefit Obligation is in Excess of the Plan Assets | The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2016 and 2015 is as follows: Pension Plans (in millions) 2016 2015 Projected benefit obligation $ 203.9 $ 177.2 Accumulated benefit obligation 203.9 176.3 Fair value of plan assets 163.8 147.9 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Future Minimum Rental Obligations Under Non-Cancelable Operating Leases | Future minimum rental obligations under non-cancelable operating leases as of December 31, 2016 , are payable as follows: (in millions) Year ending December 31: 2017 $ 11.2 2018 9.2 2019 7.6 2020 5.6 2021 3.6 Thereafter 0.2 $ 37.4 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information Relating to the Company's Reportable Segments | Financial information relating to the Company's reportable segments as of December 31, 2016 and 2015 and for the years ended December 31, 2016 , 2015 and 2014 is as follows: (in millions) 2016 2015 2014 Net sales: Americas $ 1,186.6 $ 1,323.7 $ 1,301.9 EMEA 287.6 281.6 315.1 APAC 190.9 191.1 198.2 Elimination of intersegment sales (208.5 ) (226.3 ) (233.9 ) Total net sales $ 1,456.6 $ 1,570.1 $ 1,581.3 Segment Operating EBITA: Americas $ 219.1 $ 189.9 $ 197.4 EMEA 41.3 23.1 20.7 APAC 21.8 22.5 21.6 Total segment Operating EBITA 282.2 235.5 239.7 Corporate and unallocated (51.8 ) (44.2 ) (35.4 ) Amortization expense (31.2 ) (31.4 ) (31.8 ) Earnings from operations 199.2 159.9 172.5 Interest expense (85.2 ) (1.4 ) (1.3 ) Interest (expense) income on notes with MTW — net (0.1 ) 15.8 16.6 Other (expense) income — net (9.1 ) 22.1 (2.1 ) Earnings before income taxes $ 104.8 $ 196.4 $ 185.7 Operating EBITA % by segment (1) : Americas 18.5 % 14.3 % 15.2 % EMEA 14.4 % 8.2 % 6.6 % APAC 11.4 % 11.8 % 10.9 % (1) Operating EBITA % in the section above is calculated by dividing the dollar amount of Operating EBITA by net sales for each respective segment. Capital expenditures: Americas $ 12.4 $ 8.4 $ 12.4 EMEA 0.9 1.5 2.9 APAC 1.8 1.4 0.8 Corporate 0.9 1.9 9.2 Total capital expenditures $ 16.0 $ 13.2 $ 25.3 Depreciation: Americas $ 12.1 $ 14.3 $ 14.1 EMEA 2.5 2.6 3.0 APAC 2.0 2.1 2.3 Corporate 0.7 0.6 1.8 Total depreciation $ 17.3 $ 19.6 $ 21.2 Total assets by segment: Americas $ 1,463.7 $ 1,495.2 EMEA 102.6 148.5 APAC 110.8 96.5 Corporate 92.0 13.8 Total assets $ 1,769.1 $ 1,754.0 |
Net Sales by Product Class | Net sales by product class for the years ended December 31, 2016 , 2015 and 2014 are as follows: (in millions) 2016 2015 2014 Commercial foodservice whole goods $ 1,191.0 $ 1,277.2 $ 1,293.6 Aftermarket parts and support 265.6 292.9 287.7 Total net sales $ 1,456.6 $ 1,570.1 $ 1,581.3 |
Schedule of Net Sales from Continuing Operations and Long-Lived Asset Information by Geographic Area | Net sales and long-lived asset information by geographic area for the years ended December 31, 2016, 2015 and 2014 and as of December 31, 2016 and 2015 are as follows: (in millions) 2016 2015 2014 Net sales by geographic area: United States $ 945.7 $ 1,066.7 $ 996.4 Other Americas 104.3 106.6 127.4 EMEA 242.0 237.2 280.3 APAC 164.6 159.6 177.2 Total net sales by geographic area $ 1,456.6 $ 1,570.1 $ 1,581.3 Long-lived assets by geographic area (1) : 2016 2015 United States $ 1,313.3 $ 1,339.2 Other Americas 40.1 40.3 EMEA 69.7 78.2 APAC 30.6 34.8 Total long-lived assets by geographic area $ 1,453.7 $ 1,492.5 (1) Excludes deferred tax assets of $7.2 million and $8.9 million recorded in "Other non-current assets" in the accompanying consolidated balance sheets as of December 31, 2016 and 2015, respectively. |
Quarterly Financial Data (Una54
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following table presents financial data for each quarter in 2016 and 2015 : 2016 (in millions, except per share data) First Second Third Fourth Net sales $ 325.5 $ 368.4 $ 384.0 $ 378.7 Gross profit 117.6 134.7 142.0 138.5 Net earnings 18.1 15.1 24.9 21.4 Per share data Earnings per common share — Basic $ 0.13 $ 0.11 $ 0.18 $ 0.15 Earnings per common share — Diluted $ 0.13 $ 0.11 $ 0.18 $ 0.15 2015 (in millions, except per share data) First Second Third Fourth Net sales $ 345.4 $ 407.7 $ 425.3 $ 391.7 Gross profit 106.6 126.9 135.3 132.9 Net earnings 14.0 36.9 41.1 65.1 Per share data (1) Earnings per common share — Basic $ 0.10 $ 0.27 $ 0.30 $ 0.48 Earnings per common share — Diluted $ 0.10 $ 0.27 $ 0.30 $ 0.48 (1) On March 4, 2015, MTW distributed 137.0 million shares of MFS common stock to MTW shareholders in connection with the Spin-Off. See Note 25, "Earnings Per Share," for more information. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of MFS shares outstanding immediately following this transaction. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerator and Denominator used to Compute Basic and Diluted EPS | The following is a reconciliation of the numerator and denominator used to compute basic and diluted EPS for the years ended December 31, 2016 , 2015 and 2014 . (in millions, except per share data) 2016 2015 2014 Net earnings $ 79.5 $ 157.1 $ 159.8 Basic weighted average common shares outstanding 137,906,284 137,016,712 137,016,712 Effect of dilutive securities 1,807,836 — — Diluted weighted average common shares outstanding 139,714,120 137,016,712 137,016,712 Basic earnings per common share $ 0.58 $ 1.15 $ 1.17 Diluted earnings per common share $ 0.57 $ 1.15 $ 1.17 |
Subsidiary Guarantors of Seni56
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations | (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 1,070.0 $ 782.2 $ (395.6 ) $ 1,456.6 Cost of sales 3.4 775.9 540.1 (395.6 ) 923.8 Gross profit (3.4 ) 294.1 242.1 — 532.8 Selling, general and administrative expenses 35.5 152.9 101.7 — 290.1 Amortization expense — 28.4 2.8 — 31.2 Separation expense 6.3 — 0.2 — 6.5 Restructuring expense — 1.6 0.9 — 2.5 Asset impairment expense — 2.9 0.4 — 3.3 Earnings (loss) from operations (45.2 ) 108.3 136.1 — 199.2 Interest expense 82.2 1.2 1.8 — 85.2 Interest expense on notes with MTW — net — — 0.1 — 0.1 Other (income) expense — net (5.6 ) 19.6 (4.9 ) — 9.1 Equity in earnings (loss) of subsidiaries 200.5 114.0 — (314.5 ) — Earnings (loss) before income taxes 78.7 201.5 139.1 (314.5 ) 104.8 Income taxes (0.8 ) 1.0 25.1 — 25.3 Net earnings (loss) $ 79.5 $ 200.5 $ 114.0 $ (314.5 ) $ 79.5 Total other comprehensive income (loss), net of tax 1.1 3.0 7.3 (10.3 ) 1.1 Comprehensive income (loss) $ 80.6 $ 203.5 $ 121.3 $ (324.8 ) $ 80.6 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Operations For the year ended December 31, 2015 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 1,109.8 $ 809.9 $ (349.6 ) $ 1,570.1 Cost of sales 0.1 803.6 614.3 (349.6 ) 1,068.4 Gross profit (0.1 ) 306.2 195.6 — 501.7 Selling, general and administrative expenses 32.2 144.6 114.8 — 291.6 Amortization expense — 28.5 2.9 — 31.4 Separation expense 4.4 (0.5 ) 1.3 — 5.2 Restructuring expense — 1.9 2.7 — 4.6 Asset impairment expense — 9.0 — — 9.0 Earnings from operations (36.7 ) 122.7 73.9 — 159.9 Interest expense — 1.2 0.2 — 1.4 Interest income on notes with MTW — net — (14.9 ) (0.9 ) — (15.8 ) Other income — net (78.6 ) 77.8 (21.3 ) — (22.1 ) Equity in earnings (loss) of subsidiaries 123.2 77.9 — (201.1 ) — Earnings before income taxes 165.1 136.5 95.9 (201.1 ) 196.4 Income taxes 8.0 13.3 18.0 — 39.3 Net earnings (loss) $ 157.1 $ 123.2 $ 77.9 $ (201.1 ) $ 157.1 Total other comprehensive (loss) income, net of tax (23.8 ) (27.7 ) (26.9 ) 54.6 (23.8 ) Comprehensive income (loss) $ 133.3 $ 95.5 $ 51.0 $ (146.5 ) $ 133.3 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Operations For the year ended December 31, 2014 (in millions) Parent Guarantor Non- Eliminations Consolidated Net sales $ — $ 1,051.7 $ 836.5 $ (306.9 ) $ 1,581.3 Cost of sales — 750.3 629.9 (306.9 ) 1,073.3 Gross profit — 301.4 206.6 — 508.0 Selling, general and administrative expenses 29.3 142.0 128.3 — 299.6 Amortization expense — 28.5 3.3 — 31.8 Separation expense — 0.1 0.3 — 0.4 Restructuring expense — 2.7 (0.1 ) — 2.6 Asset impairment expense — 1.1 — — 1.1 Earnings from operations (29.3 ) 127.0 74.8 — 172.5 Interest expense — 1.2 0.1 — 1.3 Interest income on notes with MTW — net — (17.3 ) 0.7 — (16.6 ) Other income — net 7.8 (4.2 ) (1.5 ) — 2.1 Equity in earnings (loss) of subsidiaries 192.0 65.7 — (257.7 ) — Earnings before income taxes 154.9 213.0 75.5 (257.7 ) 185.7 Income taxes (4.9 ) 21.0 9.8 — 25.9 Net earnings (loss) $ 159.8 $ 192.0 $ 65.7 $ (257.7 ) $ 159.8 Total other comprehensive (loss) income, net of tax (21.9 ) (17.7 ) (18.1 ) 35.8 (21.9 ) Comprehensive income (loss) $ 137.9 $ 174.3 $ 47.6 $ (221.9 ) $ 137.9 |
Condensed Consolidating Balance Sheet | (in millions) Parent Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 0.4 $ 2.3 $ 51.1 $ — $ 53.8 Restricted cash — — 6.4 — 6.4 Accounts receivable — net 0.5 — 86.1 (4.9 ) 81.7 Inventories — net — 74.3 71.3 — 145.6 Prepaids and other current assets 0.9 4.5 8.5 — 13.9 Current assets held for sale — 2.3 4.5 — 6.8 Total current assets 1.8 83.4 227.9 (4.9 ) 308.2 Property, plant and equipment — net 1.2 67.9 40.0 — 109.1 Goodwill — 832.4 12.9 — 845.3 Other intangible assets — net — 423.5 60.9 — 484.4 Intercompany long-term note receivable — 20.0 — (20.0 ) — Due from affiliates — 3,085.8 — (3,085.8 ) — Investment in subsidiaries 3,780.3 — — (3,780.3 ) — Other non-current assets 2.7 5.1 19.7 (5.4 ) 22.1 Total assets $ 3,786.0 $ 4,518.1 $ 361.4 $ (6,896.4 ) $ 1,769.1 Liabilities and equity Current liabilities: Accounts payable $ 0.1 $ 64.6 $ 48.6 $ (4.9 ) $ 108.4 Accrued expenses and other liabilities 14.1 97.5 62.9 — 174.5 Current portion of capital leases — 0.5 1.1 — 1.6 Product warranties — 18.4 9.5 — 27.9 Current liabilities held for sale — — 0.7 — 0.7 Total current liabilities 14.2 181.0 122.8 (4.9 ) 313.1 Long-term debt and capital leases 1,277.0 1.7 — — 1,278.7 Deferred income taxes 120.5 — 17.3 — 137.8 Pension and postretirement health obligations 47.9 4.9 — (5.4 ) 47.4 Intercompany long-term note payable 15.7 — 4.3 (20.0 ) — Due to affiliates 2,344.8 — 741.0 (3,085.8 ) — Investment in subsidiaries — 524.6 — (524.6 ) — Other long-term liabilities 9.4 25.6 0.6 — 35.6 Total non-current liabilities 3,815.3 556.8 763.2 (3,635.8 ) 1,499.5 Total (deficit) equity: Total (deficit) equity (43.5 ) 3,780.3 (524.6 ) (3,255.7 ) (43.5 ) Total liabilities and equity $ 3,786.0 $ 4,518.1 $ 361.4 $ (6,896.4 ) $ 1,769.1 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Balance Sheet As of December 31, 2015 (in millions) Parent Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 3.5 $ 28.5 $ — $ 32.0 Restricted cash — — 0.6 — 0.6 Accounts receivable — net — — 73.4 (9.6 ) 63.8 Intercompany interest receivable — — 4.2 (4.2 ) — Intercompany short-term note receivable — — 31.0 (31.0 ) — Inventories — net — 80.2 65.7 — 145.9 Prepaids and other current assets 1.2 2.3 9.0 (2.2 ) 10.3 Total current assets 1.2 86.0 212.4 (47.0 ) 252.6 Property, plant and equipment — net 0.9 71.2 44.3 — 116.4 Goodwill — 832.4 13.4 — 845.8 Other intangible assets — net — 452.1 67.5 — 519.6 Intercompany long-term note receivable — — 42.4 (42.4 ) — Due from affiliates — 3,074.9 — (3,074.9 ) — Investment in subsidiaries 3,579.8 — — (3,579.8 ) — Other non-current assets — 3.1 71.8 (59.0 ) 15.9 Long-term assets held for sale — 3.7 — — 3.7 Total assets $ 3,581.9 $ 4,523.4 $ 451.8 $ (6,803.1 ) $ 1,754.0 Liabilities and equity Current liabilities: Accounts payable $ — $ 81.8 $ 49.5 $ (9.6 ) $ 121.7 Accrued expenses and other liabilities 0.1 100.1 66.9 (2.2 ) 164.9 Current portion of capital leases — 0.4 — — 0.4 Intercompany interest payable — 4.2 — (4.2 ) — Intercompany short-term note payable — 31.0 — (31.0 ) — Product warranties — 23.8 10.5 — 34.3 Total current liabilities 0.1 241.3 126.9 (47.0 ) 321.3 Long-term capital leases — 2.3 — — 2.3 Deferred income taxes 155.4 — 63.5 (51.0 ) 167.9 Pension and postretirement health obligations 35.0 6.3 — (8.0 ) 33.3 Intercompany long-term note payable — 42.4 — (42.4 ) — Due to affiliates 2,176.9 — 898.0 (3,074.9 ) — Investment in subsidiaries — 638.6 — (638.6 ) — Other long-term liabilities 5.8 12.7 2.0 — 20.5 Total non-current liabilities 2,373.1 702.3 963.5 (3,814.9 ) 224.0 Total (deficit) equity: Total (deficit) equity 1,208.7 3,579.8 (638.6 ) (2,941.2 ) 1,208.7 Total liabilities and equity $ 3,581.9 $ 4,523.4 $ 451.8 $ (6,803.1 ) $ 1,754.0 |
Condensed Consolidating Statement of Cash Flows | (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash (used for) provided by operating activities $ (102.7 ) $ 111.5 $ 113.2 $ — $ 122.0 Cash flows from investing activities Capital expenditures (1.0 ) (8.0 ) (7.0 ) — (16.0 ) Changes in restricted cash — — (6.0 ) — (6.0 ) Proceeds from dispositions — — 1.6 — 1.6 Intercompany investment — (104.4 ) (79.4 ) 183.8 — Net cash provided by (used for) investing activities (1.0 ) (112.4 ) (90.8 ) 183.8 (20.4 ) Cash flows from financing activities Proceeds from long-term debt and capital leases 1,499.5 0.2 1.4 — 1,501.1 Repayments on long-term debt and capital leases (186.0 ) (0.5 ) (0.3 ) — (186.8 ) Debt issuance costs (41.3 ) — — — (41.3 ) Dividend paid to MTW (1,362.0 ) — — — (1,362.0 ) Net transactions with MTW (6.1 ) — — — (6.1 ) Exercises of stock options 16.2 — — — 16.2 Intercompany financing 183.8 — — (183.8 ) — Net cash (used for) provided by financing activities 104.1 (0.3 ) 1.1 (183.8 ) (78.9 ) Effect of exchange rate changes on cash — — (0.9 ) — (0.9 ) Net increase in cash and cash equivalents 0.4 (1.2 ) 22.6 — 21.8 Balance at beginning of period — 3.5 28.5 — 32.0 Balance at end of period $ 0.4 $ 2.3 $ 51.1 $ — $ 53.8 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Cash Flows For the year ended December 31, 2015 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash provided by operating activities $ 376.9 $ (137.6 ) $ (96.3 ) $ — $ 143.0 Cash flows from investing activities Capital expenditures (0.8 ) (6.5 ) (5.9 ) — (13.2 ) Changes in restricted cash — — (0.6 ) — (0.6 ) Business acquisitions, net of cash acquired — — (5.3 ) — (5.3 ) Proceeds from sale of business — 78.2 — — 78.2 Intercompany investment (193.2 ) — — 193.2 — Net cash used for investing activities (194.0 ) 71.7 (11.8 ) 193.2 59.1 Cash flows from financing activities Proceeds from capital leases — 0.5 — — 0.5 Repayments on capital leases — (0.7 ) — — (0.7 ) Net transactions with MTW (182.9 ) — — — (182.9 ) Intercompany financing — 66.9 126.3 (193.2 ) — Net cash used for financing activities (182.9 ) 66.7 126.3 (193.2 ) (183.1 ) Effect of exchange rate changes on cash — — (3.5 ) — (3.5 ) Net increase in cash and cash equivalents — 0.8 14.7 — 15.5 Balance at beginning of period — 2.7 13.8 — 16.5 Balance at end of period $ — $ 3.5 $ 28.5 $ — $ 32.0 MANITOWOC FOODSERVICE, INC. Consolidating (Condensed) Statement of Cash Flows For the year ended December 31, 2014 (in millions) Parent Guarantor Non- Eliminations Consolidated Cash flows from operating activities Net cash provided by operating activities $ 159.1 $ (54.0 ) $ 95.1 $ — $ 200.2 Cash flows from investing activities Capital expenditures — (18.3 ) (7.0 ) — (25.3 ) Intercompany investment — — (82.7 ) 82.7 — Net cash used for investing activities — (18.3 ) (89.7 ) 82.7 (25.3 ) Cash flows from financing activities Proceeds from capital leases — 3.1 — — 3.1 Repayments on capital leases — (3.4 ) — — (3.4 ) Net transactions with MTW (166.7 ) — — — (166.7 ) Intercompany financing 7.6 75.1 — (82.7 ) — Net cash used for financing activities (159.1 ) 74.8 — (82.7 ) (167.0 ) Effect of exchange rate changes on cash — — (1.0 ) — (1.0 ) Net increase in cash and cash equivalents — 2.5 4.4 — 6.9 Balance at beginning of period — 0.2 9.4 — 9.6 Balance at end of period $ — $ 2.7 $ 13.8 $ — $ 16.5 |
Description of the Business a57
Description of the Business and Basis of Presentation (Details) | Jan. 29, 2015CompanyBusiness |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of independent public companies | Company | 2 |
Number of independent operating businesses | Business | 2 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Percentage of FIFO inventory | 91.20% | 90.30% | |
Inventory, LIFO Reserve | $ 3.5 | $ 3.4 | |
Estimated increase in inventory value with FIFO | 3.4 | ||
Stock-based compensation expense | 6.3 | 2.3 | $ 2.4 |
Research and development costs | $ 35.2 | $ 33.2 | $ 31 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Engineering drawings | |
Estimated useful lives of other intangible assets | |
Estimated useful lives (in years) | 15 years |
Minimum | Patents | |
Estimated useful lives of other intangible assets | |
Estimated useful lives (in years) | 10 years |
Minimum | Customer relationships | |
Estimated useful lives of other intangible assets | |
Estimated useful lives (in years) | 10 years |
Maximum | Patents | |
Estimated useful lives of other intangible assets | |
Estimated useful lives (in years) | 20 years |
Maximum | Customer relationships | |
Estimated useful lives of other intangible assets | |
Estimated useful lives (in years) | 20 years |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | Building and improvements | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Minimum | Machinery, equipment and tooling | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Minimum | Furniture and fixtures | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 3 years |
Minimum | Computer hardware and software | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 2 years |
Maximum | Building and improvements | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 40 years |
Maximum | Machinery, equipment and tooling | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 20 years |
Maximum | Furniture and fixtures | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 15 years |
Maximum | Computer hardware and software | |
Estimated useful lives of property, plant and equipment | |
Useful lives property, plant and equipment | 7 years |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Oct. 21, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Acquisitions | ||||
Business acquisitions, net of cash acquired | $ 0 | $ 5.3 | $ 0 | |
Goodwill | 845.3 | 845.8 | 872.8 | |
Purchase price allocated to intangible assets | 484.4 | 519.6 | ||
Gain on acquisition of Thailand joint venture (2) | $ 0 | $ 4.9 | $ 0 | |
Wellbilt Thailand | ||||
Acquisitions | ||||
Business acquisitions, net of cash acquired | $ 5.3 | |||
Goodwill | 1.4 | |||
Purchase price allocated to intangible assets | $ 4.2 | |||
Previously held passive interest (as a percent) | 50.00% | |||
Gain on acquisition of Thailand joint venture (2) | $ 4.9 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) - USD ($) $ in Millions | Dec. 07, 2015 | Jan. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Discontinued operations | |||||||
Sale price of discontinued operations | $ 1.6 | $ 78.2 | |||||
Proceeds from dispositions | 1.6 | 78.2 | $ 0 | ||||
Current assets held for sale | $ 6.8 | 6.8 | $ 0 | ||||
Kysor Panel Systems | |||||||
Discontinued operations | |||||||
Sale price of discontinued operations | $ 85 | ||||||
Proceeds from dispositions | $ 78 | ||||||
Businesses Disposed of Prior to 2012 | |||||||
Discontinued operations | |||||||
Loss on sale of discontinued operations | $ 1.1 | ||||||
Loss on sale of discontinued operations, income taxes | $ 0.6 | ||||||
Shanghai Business | |||||||
Discontinued operations | |||||||
Proceeds from dispositions | 1.1 | ||||||
Current assets held for sale | 2.3 | 2.3 | |||||
Current liabilities held for sale | $ 0.7 | $ 0.7 | |||||
Shanghai Business | Subsequent Event | |||||||
Discontinued operations | |||||||
Sale price of discontinued operations | $ 1.1 |
Fair Value of Financial Instr63
Fair Value of Financial Instruments - Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total assets at fair value | $ 1.7 | $ 0 |
Total non-current liabilities at fair value | 1.1 | 3.6 |
Fair Value Measurement on Recurring Basis | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 1.5 | |
Total non-current assets at fair value | 0.2 | |
Total assets at fair value | 1.7 | 0 |
Total current liabilities at fair value | 1.1 | 3.2 |
Total non-current liabilities at fair value | 0.4 | |
Total liabilities at fair value | 1.1 | 3.6 |
Fair Value Measurement on Recurring Basis | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0.6 | |
Total current liabilities at fair value | 1 | 0.1 |
Fair Value Measurement on Recurring Basis | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0.9 | |
Total non-current assets at fair value | 0.2 | |
Total current liabilities at fair value | 0.1 | 3.1 |
Total non-current liabilities at fair value | 0.4 | |
Fair Value Measurement on Recurring Basis | Level 1 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | |
Total non-current assets at fair value | 0 | |
Total assets at fair value | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | |
Total liabilities at fair value | 0 | 0 |
Fair Value Measurement on Recurring Basis | Level 1 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | |
Total current liabilities at fair value | 0 | 0 |
Fair Value Measurement on Recurring Basis | Level 1 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | |
Total non-current assets at fair value | 0 | |
Total current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | |
Fair Value Measurement on Recurring Basis | Level 2 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 1.5 | |
Total non-current assets at fair value | 0.2 | |
Total assets at fair value | 1.7 | 0 |
Total current liabilities at fair value | 1.1 | 3.2 |
Total non-current liabilities at fair value | 0.4 | |
Total liabilities at fair value | 1.1 | 3.6 |
Fair Value Measurement on Recurring Basis | Level 2 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0.6 | |
Total current liabilities at fair value | 1 | 0.1 |
Fair Value Measurement on Recurring Basis | Level 2 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0.9 | |
Total non-current assets at fair value | 0.2 | |
Total current liabilities at fair value | 0.1 | 3.1 |
Total non-current liabilities at fair value | 0.4 | |
Fair Value Measurement on Recurring Basis | Level 3 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | |
Total non-current assets at fair value | 0 | |
Total assets at fair value | 0 | 0 |
Total current liabilities at fair value | 0 | 0 |
Total non-current liabilities at fair value | 0 | |
Total liabilities at fair value | 0 | 0 |
Fair Value Measurement on Recurring Basis | Level 3 | Foreign currency exchange contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | |
Total current liabilities at fair value | 0 | 0 |
Fair Value Measurement on Recurring Basis | Level 3 | Commodity contracts | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Total current assets at fair value | 0 | |
Total non-current assets at fair value | 0 | |
Total current liabilities at fair value | $ 0 | 0 |
Total non-current liabilities at fair value | $ 0 |
Fair Value of Financial Instr64
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Feb. 18, 2016 |
Senior Notes | Senior Notes 9.50% due 2024 | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Interest rate, stated percentage (as a percent) | 9.50% | 9.50% |
Debt instrument at fair value | $ 496.2 | |
Secured Debt | Term Loan B Facility | ||
Financial assets and liabilities accounted for at fair value on a recurring basis | ||
Debt instrument at fair value | $ 838.4 |
Derivative Financial Instrume65
Derivative Financial Instruments - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash hedge gain to be reclassified in twelve months | $ 0.4 |
Minimum length of time hedged in cash flow hedge | 15 months |
Maximum length of time hedged in cash flow hedge | 36 months |
Derivative Financial Instrume66
Derivative Financial Instruments - Schedule of Outstanding Commodity and Currency Forward Contracts (Details) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2016EUR (€)MMBTUT | Dec. 31, 2015EUR (€)MMBTUT | Dec. 31, 2014EUR (€)MMBTUT | Dec. 31, 2016CAD | Dec. 31, 2016THB | Dec. 31, 2016MXN | Dec. 31, 2016SGD | Dec. 31, 2016GBP (£) | Dec. 31, 2016CHF (SFr) | Dec. 31, 2015CAD | Dec. 31, 2015THB | Dec. 31, 2015MXN | Dec. 31, 2015SGD | Dec. 31, 2015GBP (£) | Dec. 31, 2015CHF (SFr) | Dec. 31, 2014CAD | Dec. 31, 2014USD ($) | Dec. 31, 2014MXN | Dec. 31, 2014SGD | Dec. 31, 2014GBP (£) | Dec. 31, 2014CHF (SFr) | |
Not Designated as Hedging Instrument | Aluminum | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Commodity units hedged, mass | 28 | 0 | 0 | ||||||||||||||||||
Not Designated as Hedging Instrument | Steel | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Commodity units hedged, mass | 340 | 0 | 0 | ||||||||||||||||||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Canadian Dollar | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | CAD | CAD 0 | CAD 1,117,850 | CAD 2,516 | ||||||||||||||||||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | European Euro | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | € | € 16,000,000 | € 0 | € 2,172,068 | ||||||||||||||||||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | British Pound | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | £ | £ 8,192,692 | £ 0 | £ 0 | ||||||||||||||||||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Mexican Peso | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | MXN | MXN 0 | MXN 0 | MXN 3,151,000 | ||||||||||||||||||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Swiss Franc | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | SFr | SFr 3,150,000 | SFr 0 | SFr 0 | ||||||||||||||||||
Designated as Hedging Instrument | Aluminum | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Commodity units hedged, mass | 1,663 | 1,215 | 1,657 | ||||||||||||||||||
Designated as Hedging Instrument | Copper | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Commodity units hedged, mass | 746 | 472 | 820 | ||||||||||||||||||
Designated as Hedging Instrument | Natural gas | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Commodity units hedged, energy | MMBTU | 56,416 | 49,396 | 56,792 | ||||||||||||||||||
Designated as Hedging Instrument | Steel | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Commodity units hedged, mass | 8,663 | 11,073 | 12,634 | ||||||||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | Canadian Dollar | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | CAD | CAD 26,130,000 | CAD 587,556 | CAD 7,984,824 | ||||||||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | European Euro | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | € | € 11,261,848 | € 231,810 | € 0 | ||||||||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | British Pound | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | £ | £ 4,191,763 | £ 113,115 | £ 0 | ||||||||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | Mexican Peso | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | MXN | MXN 148,200,000 | MXN 28,504,800 | MXN 52,674,383 | ||||||||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | Thailand Baht | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | THB 23,231,639 | THB 0 | $ 0 | ||||||||||||||||||
Designated as Hedging Instrument | Foreign currency exchange contracts | Singapore Dollar | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Derivative notional amount | SGD | SGD 4,375,000 | SGD 0 | SGD 0 |
Derivative Financial Instrume67
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Total assets at fair value | $ 1.7 | $ 0 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total assets at fair value | 1.7 | 0 |
Prepaids and other current assets | Designated as Hedging Instrument | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total assets at fair value | 0.6 | 0 |
Prepaids and other current assets | Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Total assets at fair value | 0.9 | 0 |
Other non-current assets | Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Total assets at fair value | $ 0.2 | $ 0 |
Derivative Financial Instrume68
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Total non-current liabilities at fair value | $ 1.1 | $ 3.6 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total non-current liabilities at fair value | 0.9 | 2.8 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total non-current liabilities at fair value | 0.2 | 0.8 |
Accrued expenses and other liabilities | Designated as Hedging Instrument | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total non-current liabilities at fair value | 0.8 | 0.1 |
Accrued expenses and other liabilities | Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Total non-current liabilities at fair value | 0.1 | 2.4 |
Accrued expenses and other liabilities | Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Total non-current liabilities at fair value | 0.2 | 0 |
Accrued expenses and other liabilities | Not Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Total non-current liabilities at fair value | 0 | 0.7 |
Other long-term liabilities | Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Total non-current liabilities at fair value | 0 | 0.3 |
Other long-term liabilities | Not Designated as Hedging Instrument | Commodity contracts | ||
Derivative [Line Items] | ||
Total non-current liabilities at fair value | $ 0 | $ 0.1 |
Derivative Financial Instrume69
Derivative Financial Instruments - Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Cost of sales | $ 923.8 | $ 1,068.4 | $ 1,073.3 |
Gains and Losses on Cash Flow Hedges | Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | 2.6 | (0.8) | (0.6) |
Gains and Losses on Cash Flow Hedges | Cash Flow Hedging [Member] | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | (0.1) | 0.3 | (0.1) |
Gains and Losses on Cash Flow Hedges | Cash Flow Hedging [Member] | Commodity contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax) | 2.7 | (1.1) | (0.5) |
Amount Reclassified from Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | |||
Derivative [Line Items] | |||
Cost of sales | (1.5) | (4.8) | (1.2) |
Amount Reclassified from Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Cost of sales | 0 | (1.4) | (0.9) |
Amount Reclassified from Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges | Commodity contracts | |||
Derivative [Line Items] | |||
Cost of sales | (1.5) | (3.4) | (0.3) |
Cost of sales | Cash Flow Hedging [Member] | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0.1 | 0.1 |
Cost of sales | Cash Flow Hedging [Member] | Commodity contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0.1 | 0.1 |
Not Designated as Hedging Instrument | Other expense (income) — net | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative | 0.6 | (0.7) | 0 |
Not Designated as Hedging Instrument | Other expense (income) — net | Foreign currency exchange contracts | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative | (0.2) | 0.1 | 0 |
Not Designated as Hedging Instrument | Other expense (income) — net | Commodity contracts — short-term | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative | 0.8 | (0.7) | 0 |
Not Designated as Hedging Instrument | Other expense (income) — net | Commodity contracts — long-term | |||
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on derivative | $ 0 | $ (0.1) | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories — gross: | ||
Raw materials | $ 68.2 | $ 70.7 |
Work-in-process | 18.3 | 18.7 |
Finished goods | 85.1 | 83.4 |
Total inventories — gross | 171.6 | 172.8 |
Excess and obsolete inventory reserve | (22.5) | (23.5) |
Net inventories at FIFO cost | 149.1 | 149.3 |
Excess of FIFO costs over LIFO value | (3.5) | (3.4) |
Inventories — net | $ 145.6 | $ 145.9 |
Property, Plant and Equipment71
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment | ||
Total cost | $ 383.6 | $ 384.8 |
Less accumulated depreciation | (274.5) | (268.4) |
Property, plant and equipment-net | 109.1 | 116.4 |
Land | ||
Property, Plant and Equipment | ||
Total cost | 7.3 | 7.3 |
Building and improvements | ||
Property, Plant and Equipment | ||
Total cost | 91.3 | 94.3 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment | ||
Total cost | 215.1 | 216 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total cost | 5.8 | 6.2 |
Computer hardware and software | ||
Property, Plant and Equipment | ||
Total cost | 52.9 | 51.2 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total cost | $ 11.2 | $ 9.8 |
Goodwill and Other Intangible72
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | |||
Goodwill gross balance | $ 1,361 | $ 1,361.5 | $ 1,388.5 |
Accumulated asset impairments | (515.7) | (515.7) | (515.7) |
Foreign currency impact | 0.5 | 0.5 | |
Impact of acquisitions and divestitures | (26.5) | ||
Goodwill | 845.3 | 845.8 | 872.8 |
Americas | |||
Goodwill | |||
Goodwill gross balance | 1,144.8 | 1,144.8 | 1,172.7 |
Accumulated asset impairments | (312.2) | (312.2) | (312.2) |
Foreign currency impact | 0 | 0 | |
Impact of acquisitions and divestitures | (27.9) | ||
Goodwill | 832.6 | 832.6 | 860.5 |
EMEA | |||
Goodwill | |||
Goodwill gross balance | 208.2 | 208.3 | 208.4 |
Accumulated asset impairments | (203.5) | (203.5) | (203.5) |
Foreign currency impact | 0.1 | 0.1 | |
Impact of acquisitions and divestitures | 0 | ||
Goodwill | 4.7 | 4.8 | 4.9 |
APAC | |||
Goodwill | |||
Goodwill gross balance | 8 | 8.4 | 7.4 |
Accumulated asset impairments | 0 | 0 | 0 |
Foreign currency impact | 0.4 | 0.4 | |
Impact of acquisitions and divestitures | 1.4 | ||
Goodwill | $ 8 | $ 8.4 | $ 7.4 |
Goodwill and Other Intangible73
Goodwill and Other Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets other than Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Intangible asset balances by major asset class | ||
Gross Carrying Amount | $ 729.9 | $ 735.2 |
Accumulated Amortization Amount | (245.5) | (215.6) |
Net Book Value | 312 | |
Net Book Value | 484.4 | 519.6 |
Customer relationships | ||
Intangible asset balances by major asset class | ||
Gross Carrying Amount | 415.2 | 415.2 |
Accumulated Amortization Amount | (171.4) | (150.4) |
Net Book Value | 243.8 | 264.8 |
Patents | ||
Intangible asset balances by major asset class | ||
Gross Carrying Amount | 1.6 | 1.7 |
Accumulated Amortization Amount | (1.6) | (1.6) |
Net Book Value | 0 | 0.1 |
Other intangibles | ||
Intangible asset balances by major asset class | ||
Gross Carrying Amount | 140.7 | 143.2 |
Accumulated Amortization Amount | (72.5) | (63.6) |
Net Book Value | 68.2 | 79.6 |
Trademarks and tradenames | ||
Intangible asset balances by major asset class | ||
Net book value, indefinite intangibles | $ 172.4 | $ 175.1 |
Goodwill and Other Intangible74
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 31.2 | $ 31.4 | $ 31.8 |
Goodwill and Other Intangible75
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Millions | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 31.2 |
2,018 | 31.2 |
2,019 | 30.9 |
2,020 | 30.7 |
2,021 | 30.7 |
Thereafter | 157.3 |
Net Book Value | $ 312 |
Accounts Payable and Accrued 76
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 108.4 | $ 121.7 |
Total accounts payable | 108.4 | 121.7 |
Interest payable | 15.7 | 0 |
Income taxes payable | 2.5 | 7.3 |
Employee related expenses | 29.8 | 24.5 |
Restructuring expenses | 3.3 | 16.8 |
Profit sharing and incentives | 14.2 | 3.9 |
Accrued rebates | 56 | 49.9 |
Deferred revenue - current | 4.4 | 3.8 |
Dividend payable to MTW | 0 | 10.2 |
Customer advances | 7.4 | 2.9 |
Product liability | 2.3 | 2.6 |
Miscellaneous accrued expenses | 38.9 | 43 |
Total accrued expenses and other liabilities | $ 174.5 | $ 164.9 |
Accounts Receivable Securitiz77
Accounts Receivable Securitization (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)entity | Dec. 31, 2015USD ($) | Mar. 03, 2016USD ($) | |
Accounts Receivable Securitization | |||
Number of funding entities | entity | 2 | ||
Capacity of securitization program | $ 110 | ||
Average collection cycle for accounts receivable (in days) | 60 days | ||
Fair value of deferred purchase price notes | $ 60 | $ 48.4 | |
Trade accounts receivable balance sold | $ 96.7 | $ 100.9 | |
LIBOR | |||
Accounts Receivable Securitization | |||
Fixed spread | 1.25% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 03, 2016USD ($) | Dec. 31, 2016USD ($) | Feb. 18, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Debt redemption price for mandatory redeemable notes (as a percent) | 101.00% | |||
Event of default, minimum percentage of Senior Notes held required to declare debt due and payable (as a percent) | 25.00% | |||
Total debt | $ 1,316,800,000 | $ 2,700,000 | ||
2,021 | $ 63,500,000 | |||
Debt Instrument, Consolidated Total Leverage Ratio | 5.18 | |||
Consolidated Total Leverage Ratio (less than) | 5.75 | |||
Debt Instrument, Consolidated Interest Coverage Ratio | 3.13 | |||
Consolidated Interest Coverage Ratio (greater than) | 2.25 | |||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 63,500,000 | 0 | ||
Term loan B | ||||
Debt Instrument [Line Items] | ||||
Total debt | 825,000,000 | 0 | ||
Term loan B | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Spreads for LIBOR and Prime borrowings | 4.75% | |||
Floor interest rate (as a percent) | 1.00% | |||
Senior Notes 9.50% due 2024 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 425,000,000 | 0 | ||
Other | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 3,300,000 | $ 2,700,000 | ||
Weighted average interest rate (as a percent) | 4.14% | |||
Senior Notes | Senior Notes 9.50% due 2024 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 425,000,000 | |||
Interest rate, stated percentage (as a percent) | 9.50% | 9.50% | ||
Senior Notes | Senior Notes 9.50% due 2024 | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Debt redemption price (as a percent) | 100.00% | |||
Secured Debt | Term Loan B Facility | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 975,000,000 | |||
Revolving credit facility | 2016 Credit Agreement | LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Spreads for LIBOR and Prime borrowings | 1.50% | |||
Revolving credit facility | 2016 Credit Agreement | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Spreads for LIBOR and Prime borrowings | 2.75% | |||
Revolving credit facility | 2016 Credit Agreement | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Spreads for LIBOR and Prime borrowings | 1.00% | |||
Revolving credit facility | Line of Credit | 2016 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum capacity | $ 225,000,000 | |||
Weighted average interest rate (as a percent) | 2.83% | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 63,500,000 | |||
Highest daily borrowings | 91,000,000 | |||
Average borrowings | $ 46,800,000 | |||
Revolving credit facility | Line of Credit | 2016 Credit Agreement | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Spreads for LIBOR and Prime borrowings | 2.50% | |||
Revolving credit facility | Line of Credit | 2016 Credit Agreement | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Spreads for LIBOR and Prime borrowings | 1.50% | |||
Letter of Credit | Line of Credit | 2016 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum capacity | 20,000,000 | |||
Bridge Loan | Line of Credit | 2016 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum capacity | $ 40,000,000 |
Debt - Current Covenant Levels
Debt - Current Covenant Levels of the Financial Covenants Under the Senior Credit Facility (Details) | Dec. 31, 2016 |
Financial Covenants | |
Consolidated Total Leverage Ratio (less than) | 5.75 |
Consolidated Interest Coverage Ratio (greater than) | 2.25 |
March 31, 2016 | |
Financial Covenants | |
Consolidated Total Leverage Ratio (less than) | 6.25 |
Actual Consolidated Total Leverage Ratio | 5.49 |
Actual Consolidated Interest Coverage Ratio | 5.91 |
March 31, 2016 | Minimum | |
Financial Covenants | |
Consolidated Interest Coverage Ratio (greater than) | 2 |
June 30, 2016 | |
Financial Covenants | |
Consolidated Total Leverage Ratio (less than) | 6.25 |
Actual Consolidated Total Leverage Ratio | 5.52 |
Actual Consolidated Interest Coverage Ratio | 3.25 |
June 30, 2016 | Minimum | |
Financial Covenants | |
Consolidated Interest Coverage Ratio (greater than) | 2 |
September 30, 2016 | |
Financial Covenants | |
Consolidated Total Leverage Ratio (less than) | 6 |
Actual Consolidated Total Leverage Ratio | 5.29 |
Actual Consolidated Interest Coverage Ratio | 3.17 |
September 30, 2016 | Minimum | |
Financial Covenants | |
Consolidated Interest Coverage Ratio (greater than) | 2.25 |
December 31, 2016 | |
Financial Covenants | |
Consolidated Total Leverage Ratio (less than) | 5.75 |
Actual Consolidated Total Leverage Ratio | 5.18 |
Actual Consolidated Interest Coverage Ratio | 3.13 |
December 31, 2016 | Minimum | |
Financial Covenants | |
Consolidated Interest Coverage Ratio (greater than) | 2.25 |
Debt - Schedule of Debt Redempt
Debt - Schedule of Debt Redemption Prices (Details) - Senior Notes - Senior Notes 9.50% due 2024 | 12 Months Ended |
Dec. 31, 2016 | |
2,019 | |
Debt Instrument [Line Items] | |
Debt redemption price (as a percent) | 107.10% |
2,020 | |
Debt Instrument [Line Items] | |
Debt redemption price (as a percent) | 104.80% |
2,021 | |
Debt Instrument [Line Items] | |
Debt redemption price (as a percent) | 102.40% |
2022 and thereafter | |
Debt Instrument [Line Items] | |
Debt redemption price (as a percent) | 100.00% |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,316.8 | $ 2.7 |
Less current portion and short-term borrowings | (1.6) | (0.4) |
Less unamortized debt issuance costs | (36.5) | 0 |
Long-term debt and capital leases | 1,278.7 | 2.3 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 63.5 | 0 |
Term loan B | ||
Debt Instrument [Line Items] | ||
Total debt | 825 | 0 |
Senior Notes 9.50% due 2024 | ||
Debt Instrument [Line Items] | ||
Total debt | 425 | 0 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3.3 | $ 2.7 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 63.5 |
Thereafter | 1,250 |
Long-term Debt | $ 1,313.5 |
Income Taxes - Summary of Earni
Income Taxes - Summary of Earnings before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 30.5 | $ 121.3 | $ 121.8 |
Foreign | 74.3 | 75.1 | 63.9 |
Earnings before income taxes | $ 104.8 | $ 196.4 | $ 185.7 |
Income Taxes - Schedule of the
Income Taxes - Schedule of the Components of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal and state | $ 15.7 | $ 51.1 | $ 28.3 |
Foreign | 19.5 | 18.2 | 15.1 |
Total current expense | 35.2 | 69.3 | 43.4 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal and state | (15.5) | (27.9) | (12) |
Foreign | 5.6 | (2.1) | (5.5) |
Total deferred expense | (9.9) | (30) | (17.5) |
Provision for taxes on earnings | $ 25.3 | $ 39.3 | $ 25.9 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the U.S. Federal Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at statutory rate | 35.00% | 35.00% | 35.00% |
State income provision | 1.50% | 1.40% | 1.40% |
Manufacturing and research incentives | (1.90%) | (1.70%) | (1.70%) |
Taxes on foreign income which differ from the U.S. statutory rate | (8.10%) | (3.90%) | (2.40%) |
Adjustments for unrecognized tax benefits | (1.50%) | 0.10% | 4.30% |
Adjustments for valuation allowances | 2.50% | (13.80%) | 21.50% |
Capital loss generation | (0.00%) | (0.00%) | (41.40%) |
Business acquisitions and divestitures | 0.00% | 4.10% | 0.00% |
Out of period adjustments | (2.80%) | 0.00% | 0.00% |
Other items | (0.60%) | (1.20%) | (2.80%) |
Effective tax rate | 24.10% | 20.00% | 13.90% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective tax rate benefit (as a percent) | 24.10% | 20.00% | 13.90% | |
Domestic earnings before income taxes (as a percent) | 29.10% | 61.80% | 65.60% | |
Taxes on foreign income which differ from the U.S. statutory rate | (8.10%) | (3.90%) | (2.40%) | |
Foreign tax rate (as a percent) | 25.00% | |||
Write off of unamortized deferred tax liability | $ 130.6 | $ 159 | ||
Cash and cash equivalents including restricted cash and cash equivalents of foreign entities | 57.5 | |||
Cash and cash equivalents and restricted cash and cash equivalents | 60.2 | |||
Accrued interest and penalties | 0.1 | 0.9 | ||
Unrecognized tax benefits that would impact the effective rate | 11.9 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 178.2 | |||
Valuation allowance | 167.2 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 63.3 | |||
Manitowoc Foodservice, Inc | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax provision related to divestiture | 2.9 | |||
Kysor Panel Systems | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax provision related to divestiture | 17.8 | |||
Write off of unamortized deferred tax liability | $ 13.8 | |||
Enodis Acquisition | ||||
Operating Loss Carryforwards [Line Items] | ||||
Effective tax rate benefit (as a percent) | 13.90% | |||
Capital loss benefit | $ 25.6 | |||
Minimum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Change in unrecognized tax benefits | 0.1 | |||
Maximum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Change in unrecognized tax benefits | $ 0.5 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Non-current deferred tax assets (liabilities): | ||
Inventories | $ 7.2 | $ 7.6 |
Accounts receivable | 1.7 | 1.2 |
Property, plant and equipment | (2.7) | (2.8) |
Intangible assets | (190.8) | (218.9) |
Deferred employee benefits | 19.2 | 15.7 |
Product warranty reserves | 13.3 | 14.4 |
Product liability reserves | 0.9 | 1 |
Loss carryforwards | 43.8 | 84.9 |
Deferred revenue | 1.3 | 1.1 |
Other | 35.4 | 16.9 |
Non-current deferred tax liabilities | (70.7) | (78.9) |
Less valuation allowance | (59.9) | (80.1) |
Net non-current deferred tax liabilities | (130.6) | (159) |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Income taxes receivable, included in prepaids and other current assets | 2.9 | 2.7 |
Deferred tax asset, included in other non-current assets | 7.2 | 8.9 |
Income taxes payable, included in accrued expenses and other liabilities | (2.5) | (7.3) |
Long-term deferred income taxes payable | $ (137.8) | $ (167.9) |
Income Taxes - Reconciliation88
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 16.6 | $ 16.6 | $ 7.8 |
Additions based on tax positions related to the current year | 1.8 | 0.2 | 14.1 |
Reductions based on settlements with taxing authorities | 0 | 0 | (2.8) |
Reductions for equity adjustment | (4.3) | 0 | 0 |
Reductions for lapse of statute | (1.6) | (0.2) | (2.5) |
Balance at end of year | $ 12.5 | $ 16.6 | $ 16.6 |
Other Expense (Income) - Net -
Other Expense (Income) - Net - Summary of the Components of Other Operating Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Gain on sale of Kysor Panel Systems (1) | $ 0 | $ (9.9) | $ 0 |
Gain on sale of investment property | 0 | (5.4) | 0 |
Gain on acquisition of Thailand joint venture (2) | 0 | (4.9) | 0 |
Amortization of deferred financing fees | 4.8 | 0 | 0 |
Other (3) | 4.3 | (1.9) | 2.1 |
Other expense (income) — net | $ 9.1 | $ (22.1) | 2.1 |
Other expense (income) — net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other expense related to pension obligation | $ 1.1 |
Accumulated Other Comprehensi90
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Equity [Abstract] | ||
Foreign currency translation | $ (9.8) | $ (7.9) |
Derivative instrument fair market value, net of income tax benefit of $0.0 and $0.9 | 0.8 | (1.8) |
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 and $0.3 | 34.4 | 34.8 |
Accumulated other comprehensive loss | (43.4) | (44.5) |
Taxes on derivative instruments | 0 | 0.9 |
Income taxes pension and postretirement benefit adjustments | $ (6.6) | $ (0.3) |
Accumulated Other Comprehensi91
Accumulated Other Comprehensive Loss - Schedule of Components Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,208.7 | $ 1,251.4 | $ 1,268.4 |
Amounts reclassified from accumulated other comprehensive income | 2.4 | 4.1 | |
Net current period other comprehensive (loss) income | 1.1 | (23.8) | (21.9) |
Ending balance | (43.5) | 1,208.7 | 1,251.4 |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (7.9) | 17.3 | 34.2 |
Other comprehensive (loss) income before reclassifications | (1.9) | (25.2) | (16.9) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Net current period other comprehensive (loss) income | (1.9) | (25.2) | (16.9) |
Ending balance | (9.8) | (7.9) | 17.3 |
Gains and Losses on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1.8) | (1) | (0.4) |
Other comprehensive (loss) income before reclassifications | 1.7 | (3.8) | (1.4) |
Amounts reclassified from accumulated other comprehensive income | 0.9 | 3 | 0.8 |
Net current period other comprehensive (loss) income | 2.6 | (0.8) | (0.6) |
Ending balance | 0.8 | (1.8) | (1) |
Pension & Postretirement | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (34.8) | (37) | (32.6) |
Other comprehensive (loss) income before reclassifications | (1.1) | 1.1 | (4.8) |
Amounts reclassified from accumulated other comprehensive income | 1.5 | 1.1 | 0.4 |
Net current period other comprehensive (loss) income | 0.4 | 2.2 | (4.4) |
Ending balance | (34.4) | (34.8) | (37) |
Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (44.5) | (20.7) | 1.2 |
Other comprehensive (loss) income before reclassifications | (1.3) | (27.9) | (23.1) |
Amounts reclassified from accumulated other comprehensive income | 2.4 | 4.1 | 1.2 |
Net current period other comprehensive (loss) income | 1.1 | (23.8) | (21.9) |
Ending balance | $ (43.4) | $ (44.5) | $ (20.7) |
Accumulated Other Comprehensi92
Accumulated Other Comprehensive Loss - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax expense | $ 25.3 | $ 39.3 | $ 25.9 |
Net of tax | 199.2 | 159.9 | 172.5 |
Net of tax | (2.4) | (4.1) | |
Net earnings | 79.5 | 157.1 | 159.8 |
Gains and losses on cash flow hedges: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net of tax | (0.9) | (3) | (0.8) |
Pension & Postretirement | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total before tax | (2.5) | (1.1) | |
Tax benefit | 1 | 0 | |
Net of tax | (1.5) | (1.1) | $ (0.4) |
Amount Reclassified from Accumulated Other Comprehensive Income | Gains and losses on cash flow hedges: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total before tax | (1.5) | (4.8) | |
Tax expense | 0.6 | (1.8) | |
Net of tax | (0.9) | ||
Net earnings | (3) | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Amortization of prior service cost | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total before tax | 0 | 0 | |
Amount Reclassified from Accumulated Other Comprehensive Income | Actuarial losses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total before tax | (2.5) | (1.1) | |
Foreign currency exchange contracts | Amount Reclassified from Accumulated Other Comprehensive Income | Gains and losses on cash flow hedges: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales | 0 | (1.4) | |
Commodity contracts | Amount Reclassified from Accumulated Other Comprehensive Income | Gains and losses on cash flow hedges: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales | $ (1.5) | $ (3.4) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 04, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (in dollars) | $ 6.3 | $ 2.3 | $ 2.4 | |
Granted (in shares) | 300,000 | 400,000 | 100,000 | |
Exercise Price, low end of range | $ 3.51 | |||
Exercise Price, high end of range | $ 34.49 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (in dollars) | $ 1.2 | $ 0.6 | $ 0.9 | |
Stock-based compensation expense, net of tax (in dollars) | 0.7 | $ 0.4 | $ 0.5 | |
Unrecognized compensation expense (in dollars) | $ 2.4 | |||
Recognition period for unrecognized compensation expense (in years) | 2 years 9 months 18 days | |||
Weighted average fair value of options granted (in dollars per share) | $ 6.03 | $ 9.71 | $ 14.83 | |
Total intrinsic value of stock options exercised | $ 0.9 | $ 1.8 | $ 8 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (in dollars) | 5.1 | 1.7 | 0.9 | |
Stock-based compensation expense, net of tax (in dollars) | 3.1 | $ 1.1 | $ 0.6 | |
Unrecognized compensation expense (in dollars) | $ 8.1 | |||
Recognition period for unrecognized compensation expense (in years) | 2 years 4 months 24 days | |||
Shares issued (in shares) | 700,000 | 200,000 | 100,000 | |
Performance shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant (in shares) | 100,000 | |||
Separation Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (in dollars) | $ 1.6 | |||
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (in dollars) | $ 4.7 | |||
2016 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock authorized under the plan | 16,200,000 | |||
2016 Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Aggregate grant value (as a percent) | 25.00% | |||
2016 Plan | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Aggregate grant value (as a percent) | 75.00% | |||
Performance Shares 2016 | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for meeting performance goals (in years) | 3 years | |||
Performance goal weight diluted earnings per share (as a percent) | 50.00% | |||
Performance goal weight return on invested capital (as a percent) | 50.00% | |||
Performance Shares 2016 | Performance shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock authorized under the plan | 0 | |||
Performance Shares 2016 | Performance shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock authorized under the plan | 900,000 | |||
Performance Shares 2013 | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period for meeting performance goals (in years) | 3 years | |||
Performance goal weight improvement of EVA (as a percent) | 50.00% | |||
Performance goal weight total stockholder return relative to a peer group (as a percent) | 50.00% | |||
Directors | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period (in years) | 10 years | |||
Directors | Plans Prior to 2011 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Aggregate grant value (as a percent) | 25.00% | |||
Expiration period (in years) | 10 years | |||
Directors | Plans Subsequent to 2011 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Aggregate grant value (as a percent) | 25.00% | |||
Expiration period (in years) | 10 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of the Company's Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Granted (in shares) | 0.3 | 0.4 | 0.1 |
Stock Options | |||
Shares | |||
Options outstanding at the beginning of the period (in shares) | 1.4 | ||
Exercised (in shares) | (0.1) | ||
Cancelled (in shares) | (0.2) | ||
Options outstanding at the end of the period (in shares) | 1.4 | 1.4 | |
Options exercisable (in shares) | 0.8 | ||
Weighted Average Exercise Price | |||
Options outstanding at the beginning of the period (in dollars per share) | $ 17.70 | ||
Granted (in dollars per share) | 13.56 | ||
Exercised (in dollars per share) | 8.71 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 19.41 | ||
Options outstanding at the end of the period (in dollars per share) | 13.69 | $ 17.70 | |
Options exercisable (in dollars per share) | $ 13.16 | ||
Aggregate Intrinsic Value | |||
Options outstanding (in dollars) | $ 9.3 | ||
Options exercisable (in dollars) | $ 6.2 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of the Options Outstanding and Exercisable by Range of Exercise Prices (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Options outstanding and exercisable by range of exercise prices | |
Exercise Price, low end of range | $ 3.51 |
Exercise Price, high end of range | 34.49 |
$0.00 - $5.00 | |
Options outstanding and exercisable by range of exercise prices | |
Exercise Price, low end of range | 0 |
Exercise Price, high end of range | 5 |
$5.01 - $10.00 | |
Options outstanding and exercisable by range of exercise prices | |
Exercise Price, low end of range | 5.01 |
Exercise Price, high end of range | 10 |
$10.01 - $15.00 | |
Options outstanding and exercisable by range of exercise prices | |
Exercise Price, low end of range | 10.01 |
Exercise Price, high end of range | 15 |
$15.01 - $20.00 | |
Options outstanding and exercisable by range of exercise prices | |
Exercise Price, low end of range | 15.01 |
Exercise Price, high end of range | 20 |
$20.01 - $25.00 | |
Options outstanding and exercisable by range of exercise prices | |
Exercise Price, low end of range | 20.01 |
Exercise Price, high end of range | 25 |
$ 25.01 | |
Options outstanding and exercisable by range of exercise prices | |
Exercise Price, low end of range | $ 25.01 |
Stock Options | |
Options outstanding and exercisable by range of exercise prices | |
Outstanding Options (in shares) | shares | 1.4 |
Weighted Average Remaining Contractual Life (in years) | 5 years 9 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ 13.69 |
Exercisable Options (in shares) | shares | 0.8 |
Weighted Average Exercise Price (in dollars per share) | $ 13.16 |
Stock Options | $0.00 - $5.00 | |
Options outstanding and exercisable by range of exercise prices | |
Outstanding Options (in shares) | shares | 0.2 |
Weighted Average Remaining Contractual Life (in years) | 2 years 2 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $ 3.51 |
Exercisable Options (in shares) | shares | 0.2 |
Weighted Average Exercise Price (in dollars per share) | $ 3.51 |
Stock Options | $5.01 - $10.00 | |
Options outstanding and exercisable by range of exercise prices | |
Outstanding Options (in shares) | shares | 0.2 |
Weighted Average Remaining Contractual Life (in years) | 3 years 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 9.04 |
Exercisable Options (in shares) | shares | 0.2 |
Weighted Average Exercise Price (in dollars per share) | $ 9.04 |
Stock Options | $10.01 - $15.00 | |
Options outstanding and exercisable by range of exercise prices | |
Outstanding Options (in shares) | shares | 0.6 |
Weighted Average Remaining Contractual Life (in years) | 8 years 3 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ 13.36 |
Exercisable Options (in shares) | shares | 0.1 |
Weighted Average Exercise Price (in dollars per share) | $ 13.36 |
Stock Options | $15.01 - $20.00 | |
Options outstanding and exercisable by range of exercise prices | |
Outstanding Options (in shares) | shares | 0.2 |
Weighted Average Remaining Contractual Life (in years) | 6 years 2 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $ 16.53 |
Exercisable Options (in shares) | shares | 0.1 |
Weighted Average Exercise Price (in dollars per share) | $ 16.08 |
Stock Options | $20.01 - $25.00 | |
Options outstanding and exercisable by range of exercise prices | |
Outstanding Options (in shares) | shares | 0.1 |
Weighted Average Remaining Contractual Life (in years) | 3 years 6 months |
Weighted Average Exercise Price (in dollars per share) | $ 23.32 |
Exercisable Options (in shares) | shares | 0.1 |
Weighted Average Exercise Price (in dollars per share) | $ 23.37 |
Stock Options | $25.01 | |
Options outstanding and exercisable by range of exercise prices | |
Outstanding Options (in shares) | shares | 0.1 |
Weighted Average Remaining Contractual Life (in years) | 1 year 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 31.27 |
Exercisable Options (in shares) | shares | 0.1 |
Weighted Average Exercise Price (in dollars per share) | $ 31.27 |
Stock-Based Compensation - Sc96
Stock-Based Compensation - Schedule of the Assumptions Used to Estimate the Fair Value of Each Option Grant (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 6 years | 6 years | 6 years |
Risk-free Interest rate (as a percent) | 1.60% | 1.80% | 1.90% |
Expected volatility (as a percent) | 39.00% | 56.00% | 55.00% |
Expected dividend yield (as a percent) | 0.00% | 0.30% | 0.40% |
Stock-Based Compensation - Su97
Stock-Based Compensation - Summary of Activity for Restricted Stock Units (Details) - Performance shares shares in Millions | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested beginning of period (in shares) | shares | 0.2 |
Granted, shares | shares | 0.7 |
Vested, shares | shares | 0 |
Forfeited, shares | shares | 0 |
Unvested end of period (in shares) | shares | 0.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested beginning of period (in dollars per share) | $ / shares | $ 24.50 |
Granted (in dollars per share) | $ / shares | 15.20 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Unvested end of period (in dollars per share) | $ / shares | $ 17.20 |
Contingencies and Significant98
Contingencies and Significant Estimates - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Site contingency | ||
Accruals for environmental matters | $ 0.5 | $ 0.4 |
Period over which product liability self-insurance retention levels have fluctuated (in years) | 10 years | |
Product liability reserves | $ 2.3 | 2.6 |
Product liability reserves for actual cases | 0.7 | 0.9 |
Product liability reserves for claims incurred but not reported | 1.6 | 1.7 |
Product warranties | 27.9 | 34.3 |
Product warranties noncurrent | 8.4 | $ 5.7 |
Minimum | ||
Site contingency | ||
Self insurance reserve | 0.1 | |
Maximum | ||
Site contingency | ||
Self insurance reserve | 0.3 | |
Product liability self-insurance retention levels per occurrence | $ 0.3 |
Product Warranties - Narrative
Product Warranties - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | ||
Standard product warranty, low end of range (in months) | 12 months | |
Standard product warranty, high end of range (in months) | 60 months | |
Deferred revenue included in other current and non-current liabilities | $ 6.1 | $ 5.7 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Warranty activity | ||
Balance at beginning of period | $ 40 | $ 42 |
Accruals for warranties issued during the period | 22.1 | 24.2 |
Settlements made (in cash or in kind) during the period | (25.1) | (25.2) |
Currency translation | (0.7) | (1) |
Balance at end of period | $ 36.3 | $ 40 |
Restructuring - Rollforward of
Restructuring - Rollforward of All Restructuring Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Rollforward of all restructuring activities | |||
Balance at beginning of period | $ 16.8 | $ 15.6 | |
Restructuring expense | 2.5 | 4.6 | $ 2.6 |
Use of reserve | (4.9) | (3.4) | |
Balance at end of period | $ 14.4 | $ 16.8 | $ 15.6 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Short-term restructuring liability | $ 3.3 | $ 16.8 | |
Long term restructuring liability | 11.1 | ||
Restructuring expense | 2.5 | 4.6 | $ 2.6 |
Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring costs to incur | 3.5 | ||
Restructuring expense | 1.7 | 1.3 | $ 0.1 |
Facility Closing | Closure of Singapore Facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Property plant and equipment held for sale | 2.2 | ||
Facility Closing | Closure of Cleveland Facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Property plant and equipment held for sale | 2.3 | ||
Impairment of assets held for sale | $ 1.2 | $ 9 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)plan | Dec. 31, 2015USD ($)plan | Dec. 31, 2014USD ($)plan | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined contribution retirement plans for the employees | plan | 3 | ||
Total costs incurred under the Manitowoc Retirement Savings Plan | $ 2 | $ 1.5 | $ 3.7 |
Number of deferred compensation plans | plan | 2 | ||
Number of defined benefit pension plans | plan | 2 | ||
Multiemployer plans cost | $ 0.9 | 1.6 | $ 1 |
Withdrawal obligation | $ 13.1 | 14.7 | |
Multiemployer plan, number of withdrawal obligation quarterly payments | 48 | ||
Multiemployer plan, withdrawal obligation quarterly installment payment amount | $ 0.5 | ||
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan obligation assumed | 55.6 | ||
Pension plan assets assumed | 34.1 | ||
Net periodic benefit cost next fiscal year | 1.5 | ||
Minimum contribution next twelve months | 10 | ||
Postretirement Health and Other Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan obligation assumed | 6.8 | 0 | |
Pension plan assets assumed | 0 | 0 | |
Net transfer | 28.3 | ||
Pension gains recognized in AOCI | $ 6.1 | ||
Annual rate of increase in health care benefits (as a percent) | 6.50% | ||
Ultimate health care cost trend rate (as a percent) | 4.50% | ||
Expected company paid claims | $ 1 | ||
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan obligation assumed | 55.6 | 0 | |
Pension plan assets assumed | 34.1 | 0 | |
Accumulated benefit obligation | 203.9 | $ 176.3 | |
Program A | Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Program obligation | 0.2 | ||
Other non-current assets | Program B | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 5.5 | ||
Other long-term liabilities | Program B | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension obligations assumed | $ 5.5 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Period Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 0.2 | $ 0.4 | $ 0.5 |
Interest cost of projected benefit obligation | 8.3 | 6.5 | 8.1 |
Expected return on assets | (6.2) | (5.4) | (7.1) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of actuarial net (gain) loss | 2.5 | 1.2 | 0.9 |
Curtailment gain recognized | 0 | 0 | 0 |
Net periodic benefit cost | $ 4.8 | $ 2.7 | $ 2.4 |
Weighted average assumptions: | |||
Discount rate | 3.90% | 3.50% | 4.40% |
Expected return on plan assets | 3.70% | 3.50% | 4.50% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Postretirement Health and Other Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 0 | $ 0 | $ 0 |
Interest cost of projected benefit obligation | 0.4 | 0.1 | 0.2 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | (0.3) |
Amortization of actuarial net (gain) loss | 0 | (0.1) | (0.1) |
Curtailment gain recognized | 0 | 0 | 0 |
Net periodic benefit cost | $ 0.4 | $ 0 | $ (0.2) |
Weighted average assumptions: | |||
Discount rate | 3.90% | 3.70% | 4.50% |
Rate of compensation increase | 1.50% | 1.50% | 1.50% |
Employee Benefit Plans - Reconc
Employee Benefit Plans - Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | $ 147.9 | ||
Fair value of plan assets, end of year | 163.8 | $ 147.9 | |
Weighted-Average Assumptions | |||
Short term portion of pension obligation | 0.7 | ||
Short term portion of other benefit obligation | 1 | ||
U.S. Pension Plans | |||
Change in Benefit Obligation | |||
Benefit obligation, beginning of year | 177.2 | 195 | |
Service cost | 0.2 | 0.4 | $ 0.5 |
Interest cost | 8.3 | 6.5 | 8.1 |
Participant contributions | 0 | 0 | |
Plan combinations | 55.6 | 0 | |
Actuarial loss (gain) | (4.1) | 5.5 | |
Currency translation adjustment | (29.3) | (8.8) | |
Benefits paid | (12.2) | (10.4) | |
Benefit obligation, end of year | 203.9 | 177.2 | 195 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 147.9 | 162.1 | |
Actual return on plan assets | 14.1 | 0.6 | |
Employer contributions | 6.1 | 3.1 | |
Participant contributions | 0 | 0 | |
Plan combinations | 34.1 | 0 | |
Currency translation adjustment | (26.2) | (7.5) | |
Benefits paid | (12.2) | (10.4) | |
Fair value of plan assets, end of year | 163.8 | 147.9 | 162.1 |
Funded status | (40.1) | (29.3) | |
Amounts recognized in the Consolidated Balance sheet at December 31 | |||
Pension obligation | (40.1) | (29.3) | |
Postretirement health and other benefit obligations | 0 | 0 | |
Net amount recognized | $ (40.1) | $ (29.3) | |
Weighted-Average Assumptions | |||
Discount rate (as a percent) | 3.10% | 3.70% | |
Rate of compensation increase (as a percent) | 4.00% | ||
Postretirement Health and Other Plans | |||
Change in Benefit Obligation | |||
Benefit obligation, beginning of year | $ 3.2 | $ 2.8 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.4 | 0.1 | 0.2 |
Participant contributions | 0.4 | 0.3 | |
Plan combinations | 6.8 | 0 | |
Actuarial loss (gain) | 0 | (0.7) | |
Currency translation adjustment | 0 | (0.2) | |
Benefits paid | (1.8) | (0.5) | |
Benefit obligation, end of year | 9 | 3.2 | 2.8 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.4 | 0.2 | |
Participant contributions | 0.4 | 0.3 | |
Plan combinations | 0 | 0 | |
Currency translation adjustment | 0 | 0 | |
Benefits paid | (1.8) | (0.5) | |
Fair value of plan assets, end of year | 0 | 0 | $ 0 |
Funded status | (9) | (3.2) | |
Amounts recognized in the Consolidated Balance sheet at December 31 | |||
Pension obligation | 0 | 0 | |
Postretirement health and other benefit obligations | (9) | (3.2) | |
Net amount recognized | $ (9) | $ (3.2) | |
Weighted-Average Assumptions | |||
Discount rate (as a percent) | 3.50% | 3.90% | |
Rate of compensation increase (as a percent) | 1.50% | 1.50% |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain (loss) | $ (40.5) | $ (35.1) |
Total amount recognized | (40.5) | (35.1) |
Postretirement Health and Other Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial gain (loss) | (0.5) | 0 |
Total amount recognized | $ (0.5) | $ 0 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Pension Plans | |
Estimated increase (decrease) in 2017 pension cost | |
0.50% increase in discount rate | $ (0.4) |
0.50% decrease in discount rate | 0.4 |
0.50% increase in long-term return on assets | (0.8) |
0.50% decrease in long-term return on assets | 0.8 |
Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2016 | |
0.50% increase in discount rate | (13.4) |
0.50% decrease in discount rate | 14.5 |
Postretirement Health and Other Plans | |
Estimated increase (decrease) in 2017 pension cost | |
0.50% increase in discount rate | 0 |
0.50% decrease in discount rate | 0 |
1% increase in medical trend rates | 0.1 |
1% decrease in medical trend rates | (0.1) |
Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2016 | |
0.50% increase in discount rate | (0.3) |
0.50% decrease in discount rate | 0.3 |
1% increase in medical trend rates | 0.6 |
1% decrease in medical trend rates | $ (0.5) |
Employee Benefit Plans - Sch108
Employee Benefit Plans - Schedule of the Weighted-Average Asset Allocations of the Pension Plans (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation (as a percent) | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation (as a percent) | 20.80% | 10.20% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation (as a percent) | 34.50% | 28.90% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation (as a percent) | 44.70% | 60.90% |
Employee Benefit Plans - Sch109
Employee Benefit Plans - Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation (as a percent) | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocations (as a percent) | 20.30% | |
Weighted-average asset allocation (as a percent) | 20.80% | 10.20% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocations (as a percent) | 33.80% | |
Weighted-average asset allocation (as a percent) | 34.50% | 28.90% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocations (as a percent) | 45.90% | |
Weighted-average asset allocation (as a percent) | 44.70% | 60.90% |
Employee Benefit Plans - Sch110
Employee Benefit Plans - Schedule of Plan Assets Using the Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Plan assets using fair value hierarchy | |||
Fair value of plan assets | $ 163.8 | $ 147.9 | |
Cash | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 1 | 0.3 | |
Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 72.2 | 89.9 | |
Common/collective trust funds - Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 51.6 | 36.7 | |
Common/collective trust funds - Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 34.1 | 15.1 | |
Common/collective trust funds - Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 4.9 | 5.9 | |
Level 1 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 1 | 0.3 | |
Level 1 | Cash | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 1 | 0.3 | |
Level 1 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds - Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds - Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trust funds - Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 90.6 | 57.7 | |
Level 2 | Cash | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Common/collective trust funds - Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 51.6 | 36.7 | |
Level 2 | Common/collective trust funds - Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 34.1 | 15.1 | |
Level 2 | Common/collective trust funds - Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 4.9 | 5.9 | |
Level 3 | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 72.2 | 89.9 | |
Level 3 | Cash | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Insurance group annuity contracts | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 72.2 | 89.9 | $ 98.9 |
Level 3 | Common/collective trust funds - Government, corporate and other non-government debt | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common/collective trust funds - Corporate equity | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common/collective trust funds - Customized strategy | |||
Plan assets using fair value hierarchy | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Rec111
Employee Benefit Plans - Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | $ 147.9 | |
Fair value of plan assets, end of year | 163.8 | $ 147.9 |
Level 3 | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 89.9 | |
Fair value of plan assets, end of year | 72.2 | 89.9 |
Insurance group annuity contracts | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 89.9 | |
Fair value of plan assets, end of year | 72.2 | 89.9 |
Insurance group annuity contracts | Level 3 | ||
Reconciliation of fair value measurements of plan assets using significant observable inputs | ||
Fair value of plan assets, beginning of year | 89.9 | 98.9 |
Actual return on plan assets | 2.5 | 0.9 |
Benefits paid | (4.8) | (5.4) |
Foreign currency impact | 15.4 | 4.5 |
Fair value of plan assets, end of year | $ 72.2 | $ 89.9 |
Employee Benefit Plans - Sch112
Employee Benefit Plans - Schedule of Projected Benefit Payments from the Plans (Details) $ in Millions | Dec. 31, 2016USD ($) |
U.S. Pension Plans | |
Projected benefit payments from the plans | |
2,017 | $ 11.7 |
2,018 | 12 |
2,019 | 12.4 |
2,020 | 12.9 |
2,021 | 13.2 |
2022 - 2026 | 71.9 |
Postretirement Health and Other Plans | |
Projected benefit payments from the plans | |
2,017 | 1 |
2,018 | 1.1 |
2,019 | 1.1 |
2,020 | 1 |
2,021 | 0.9 |
2022 - 2026 | $ 3.6 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets for Which the Accumulated Benefit Obligation is in Excess of the Plan Assets (Details) - U.S. Pension Plans - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 203.9 | $ 177.2 |
Accumulated benefit obligation | 203.9 | 176.3 |
Fair value of plan assets | $ 163.8 | $ 147.9 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Rental expense attributed to operating leases | $ 12.8 | $ 11.2 | $ 13.8 |
Leases (Details)
Leases (Details) $ in Millions | Dec. 31, 2016USD ($) |
Future minimum rental obligations under non-cancelable operating leases | |
2,017 | $ 11.2 |
2,018 | 9.2 |
2,019 | 7.6 |
2,020 | 5.6 |
2,021 | 3.6 |
Thereafter | 0.2 |
Total | $ 37.4 |
Business Segments - Schedule of
Business Segments - Schedule of Financial Information Relating to the Company's Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment reporting information | |||||||||||
Total net sales | $ 378.7 | $ 384 | $ 368.4 | $ 325.5 | $ 391.7 | $ 425.3 | $ 407.7 | $ 345.4 | $ 1,456.6 | $ 1,570.1 | $ 1,581.3 |
Segment Operating EBITA: | 282.2 | 235.5 | 239.7 | ||||||||
Amortization expense | (31.2) | (31.4) | (31.8) | ||||||||
Earnings from operations | 199.2 | 159.9 | 172.5 | ||||||||
Interest expense | (85.2) | (1.4) | (1.3) | ||||||||
Interest (expense) income on notes with MTW — net | (0.1) | 15.8 | 16.6 | ||||||||
Other (expense) income — net | (9.1) | 22.1 | (2.1) | ||||||||
Earnings before income taxes | 104.8 | 196.4 | 185.7 | ||||||||
Total capital expenditures | 16 | 13.2 | 25.3 | ||||||||
Depreciation | 17.3 | 19.6 | 21.2 | ||||||||
Total assets | 1,769.1 | 1,754 | 1,769.1 | 1,754 | |||||||
Operating Segments | |||||||||||
Segment reporting information | |||||||||||
Amortization expense | (31.2) | (31.4) | (31.8) | ||||||||
Corporate and unallocated | |||||||||||
Segment reporting information | |||||||||||
Segment Operating EBITA: | (51.8) | (44.2) | (35.4) | ||||||||
Total capital expenditures | 0.9 | 1.9 | 9.2 | ||||||||
Depreciation | 0.7 | 0.6 | 1.8 | ||||||||
Total assets | 92 | 13.8 | 92 | 13.8 | |||||||
Elimination of intersegment sales | |||||||||||
Segment reporting information | |||||||||||
Total net sales | (208.5) | (226.3) | (233.9) | ||||||||
Americas | Operating Segments | |||||||||||
Segment reporting information | |||||||||||
Total net sales | 1,186.6 | 1,323.7 | 1,301.9 | ||||||||
Segment Operating EBITA: | 219.1 | 189.9 | 197.4 | ||||||||
Total capital expenditures | 12.4 | 8.4 | 12.4 | ||||||||
Depreciation | 12.1 | 14.3 | $ 14.1 | ||||||||
Total assets | 1,463.7 | 1,495.2 | $ 1,463.7 | $ 1,495.2 | |||||||
Americas | Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes and Amortization | |||||||||||
Segment reporting information | |||||||||||
Operating EBITA % by segment (1) : | 18.50% | 14.30% | 15.20% | ||||||||
EMEA | |||||||||||
Segment reporting information | |||||||||||
Total net sales | $ 242 | $ 237.2 | $ 280.3 | ||||||||
EMEA | Operating Segments | |||||||||||
Segment reporting information | |||||||||||
Total net sales | 287.6 | 281.6 | 315.1 | ||||||||
Segment Operating EBITA: | 41.3 | 23.1 | 20.7 | ||||||||
Total capital expenditures | 0.9 | 1.5 | 2.9 | ||||||||
Depreciation | 2.5 | 2.6 | $ 3 | ||||||||
Total assets | 102.6 | 148.5 | $ 102.6 | $ 148.5 | |||||||
EMEA | Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes and Amortization | |||||||||||
Segment reporting information | |||||||||||
Operating EBITA % by segment (1) : | 14.40% | 8.20% | 6.60% | ||||||||
APAC | |||||||||||
Segment reporting information | |||||||||||
Total net sales | $ 164.6 | $ 159.6 | $ 177.2 | ||||||||
APAC | Operating Segments | |||||||||||
Segment reporting information | |||||||||||
Total net sales | 190.9 | 191.1 | 198.2 | ||||||||
Segment Operating EBITA: | 21.8 | 22.5 | 21.6 | ||||||||
Total capital expenditures | 1.8 | 1.4 | 0.8 | ||||||||
Depreciation | 2 | 2.1 | $ 2.3 | ||||||||
Total assets | $ 110.8 | $ 96.5 | $ 110.8 | $ 96.5 | |||||||
APAC | Operating Segments | Geographic Concentration Risk | Earnings Before Interest, Taxes and Amortization | |||||||||||
Segment reporting information | |||||||||||
Operating EBITA % by segment (1) : | 11.40% | 11.80% | 10.90% |
Business Segments - Net Sales b
Business Segments - Net Sales by Product Class (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 378.7 | $ 384 | $ 368.4 | $ 325.5 | $ 391.7 | $ 425.3 | $ 407.7 | $ 345.4 | $ 1,456.6 | $ 1,570.1 | $ 1,581.3 |
Operating Segments | Commercial foodservice whole goods | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,191 | 1,277.2 | 1,293.6 | ||||||||
Operating Segments | Aftermarket parts and support | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 265.6 | $ 292.9 | $ 287.7 |
Business Segments - Schedule118
Business Segments - Schedule of Net Sales from Continuing Operations and Long-Lived Asset Information by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | $ 378.7 | $ 384 | $ 368.4 | $ 325.5 | $ 391.7 | $ 425.3 | $ 407.7 | $ 345.4 | $ 1,456.6 | $ 1,570.1 | $ 1,581.3 |
Long-lived assets | 1,453.7 | 1,492.5 | 1,453.7 | 1,492.5 | |||||||
Other non-current assets | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Deferred tax assets | 7.2 | 8.9 | 7.2 | 8.9 | |||||||
United States | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 945.7 | 1,066.7 | 996.4 | ||||||||
Other Americas | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 104.3 | 106.6 | 127.4 | ||||||||
EMEA | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 242 | 237.2 | 280.3 | ||||||||
APAC | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 164.6 | 159.6 | 177.2 | ||||||||
Operating Segments | Americas | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 1,186.6 | 1,323.7 | 1,301.9 | ||||||||
Operating Segments | United States | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Long-lived assets | 1,313.3 | 1,339.2 | 1,313.3 | 1,339.2 | |||||||
Operating Segments | Other Americas | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Long-lived assets | 40.1 | 40.3 | 40.1 | 40.3 | |||||||
Operating Segments | EMEA | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 287.6 | 281.6 | 315.1 | ||||||||
Long-lived assets | 69.7 | 78.2 | 69.7 | 78.2 | |||||||
Operating Segments | APAC | |||||||||||
Net sales from continuing operations and long-lived asset information by geographic area | |||||||||||
Net sales | 190.9 | 191.1 | $ 198.2 | ||||||||
Long-lived assets | $ 30.6 | $ 34.8 | $ 30.6 | $ 34.8 |
Quarterly Financial Data (Un119
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Mar. 04, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Net sales | $ 378.7 | $ 384 | $ 368.4 | $ 325.5 | $ 391.7 | $ 425.3 | $ 407.7 | $ 345.4 | $ 1,456.6 | $ 1,570.1 | $ 1,581.3 | |
Gross profit | 138.5 | 142 | 134.7 | 117.6 | 132.9 | 135.3 | 126.9 | 106.6 | $ 532.8 | $ 501.7 | $ 508 | |
Net earnings | $ 21.4 | $ 24.9 | $ 15.1 | $ 18.1 | $ 65.1 | $ 41.1 | $ 36.9 | $ 14 | ||||
Basic earnings per share: | ||||||||||||
Earnings per common share -- Basic | $ 0.15 | $ 0.18 | $ 0.11 | $ 0.13 | $ 0.48 | $ 0.30 | $ 0.27 | $ 0.10 | ||||
Diluted earnings per share: | ||||||||||||
Earnings per common share — Diluted | $ 0.15 | $ 0.18 | $ 0.11 | $ 0.13 | $ 0.48 | $ 0.30 | $ 0.27 | $ 0.10 | $ 0.58 | $ 1.15 | $ 1.17 | |
Common Stock | ||||||||||||
Diluted earnings per share: | ||||||||||||
Shares of common stock issued (in shares) | 137 |
Net Parent Company Investmen120
Net Parent Company Investment and Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Dividend paid to MTW | $ 1,362 | $ 0 | $ 0 |
Parent | |||
Related Party Transaction [Line Items] | |||
General corporate expense | 5.2 | 24.6 | 22.1 |
Interest expense on notes with MTW | 0.1 | 0.6 | $ 1.3 |
Notes receivable, related parties | 70.8 | ||
Notes payable, related parties | $ 9.9 | ||
Dividend paid to MTW | 1,362 | ||
Pension obligations assumed | 21.5 | ||
Post-retirement medical obligations | 6.8 | ||
Taxes payable | $ 0.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings | $ 79.5 | $ 157.1 | $ 159.8 | ||||||||
Basic weighted average common shares outstanding (in shares) | 137,906,284 | 137,016,712 | 137,016,712 | ||||||||
Effect of dilutive securities (in shares) | 1,807,836 | 0 | 0 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 139,714,120 | 137,016,712 | 137,016,712 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.15 | $ 0.18 | $ 0.11 | $ 0.13 | $ 0.48 | $ 0.30 | $ 0.27 | $ 0.10 | $ 0.58 | $ 1.15 | $ 1.17 |
Diluted earnings per common share (in dollars per share) | $ 0.57 | $ 1.15 | $ 1.17 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Mar. 04, 2016 | Mar. 03, 2016 | Dec. 31, 2016 |
Parent | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dividend paid | $ 1,362 | ||
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 3.6 | ||
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares of common stock issued (in shares) | 137 |
Subsidiary Guarantors of Sen123
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 - Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 378.7 | $ 384 | $ 368.4 | $ 325.5 | $ 391.7 | $ 425.3 | $ 407.7 | $ 345.4 | $ 1,456.6 | $ 1,570.1 | $ 1,581.3 |
Cost of sales | 923.8 | 1,068.4 | 1,073.3 | ||||||||
Gross profit | $ 138.5 | $ 142 | $ 134.7 | $ 117.6 | $ 132.9 | $ 135.3 | $ 126.9 | $ 106.6 | 532.8 | 501.7 | 508 |
Selling, general and administrative expenses | 290.1 | 291.6 | 299.6 | ||||||||
Amortization expense | 31.2 | 31.4 | 31.8 | ||||||||
Separation expense | 6.5 | 5.2 | 0.4 | ||||||||
Restructuring expense | 2.5 | 4.6 | 2.6 | ||||||||
Asset impairment expense | 3.3 | 9 | 1.1 | ||||||||
Earnings from operations | 199.2 | 159.9 | 172.5 | ||||||||
Interest expense | (85.2) | (1.4) | (1.3) | ||||||||
Interest expense (income) on notes with MTW — net | 0.1 | (15.8) | (16.6) | ||||||||
Other expense (income) — net | 9.1 | (22.1) | 2.1 | ||||||||
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Earnings before income taxes | 104.8 | 196.4 | 185.7 | ||||||||
Income taxes | 25.3 | 39.3 | 25.9 | ||||||||
Net earnings | 79.5 | 157.1 | 159.8 | ||||||||
Net current period other comprehensive (loss) income | 1.1 | (23.8) | (21.9) | ||||||||
Comprehensive income | 80.6 | 133.3 | 137.9 | ||||||||
Eliminations | |||||||||||
Net sales | (395.6) | (349.6) | (306.9) | ||||||||
Cost of sales | (395.6) | (349.6) | (306.9) | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Amortization expense | 0 | 0 | 0 | ||||||||
Separation expense | 0 | 0 | 0 | ||||||||
Restructuring expense | 0 | 0 | 0 | ||||||||
Asset impairment expense | 0 | 0 | 0 | ||||||||
Earnings from operations | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest expense (income) on notes with MTW — net | 0 | 0 | 0 | ||||||||
Other expense (income) — net | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) of subsidiaries | (314.5) | (201.1) | (257.7) | ||||||||
Earnings before income taxes | (314.5) | (201.1) | (257.7) | ||||||||
Income taxes | 0 | 0 | 0 | ||||||||
Net earnings | (314.5) | (201.1) | (257.7) | ||||||||
Net current period other comprehensive (loss) income | (10.3) | 54.6 | 35.8 | ||||||||
Comprehensive income | (324.8) | (146.5) | (221.9) | ||||||||
Parent | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales | 3.4 | 0.1 | 0 | ||||||||
Gross profit | (3.4) | (0.1) | 0 | ||||||||
Selling, general and administrative expenses | 35.5 | 32.2 | 29.3 | ||||||||
Amortization expense | 0 | 0 | 0 | ||||||||
Separation expense | 6.3 | 4.4 | 0 | ||||||||
Restructuring expense | 0 | 0 | 0 | ||||||||
Asset impairment expense | 0 | 0 | 0 | ||||||||
Earnings from operations | (45.2) | (36.7) | (29.3) | ||||||||
Interest expense | (82.2) | 0 | 0 | ||||||||
Interest expense (income) on notes with MTW — net | 0 | 0 | 0 | ||||||||
Other expense (income) — net | (5.6) | (78.6) | 7.8 | ||||||||
Equity in earnings (loss) of subsidiaries | 200.5 | 123.2 | 192 | ||||||||
Earnings before income taxes | 78.7 | 165.1 | 154.9 | ||||||||
Income taxes | (0.8) | 8 | (4.9) | ||||||||
Net earnings | 79.5 | 157.1 | 159.8 | ||||||||
Net current period other comprehensive (loss) income | 1.1 | (23.8) | (21.9) | ||||||||
Comprehensive income | 80.6 | 133.3 | 137.9 | ||||||||
Guarantor Subsidiaries | |||||||||||
Net sales | 1,070 | 1,109.8 | 1,051.7 | ||||||||
Cost of sales | 775.9 | 803.6 | 750.3 | ||||||||
Gross profit | 294.1 | 306.2 | 301.4 | ||||||||
Selling, general and administrative expenses | 152.9 | 144.6 | 142 | ||||||||
Amortization expense | 28.4 | 28.5 | 28.5 | ||||||||
Separation expense | 0 | (0.5) | 0.1 | ||||||||
Restructuring expense | 1.6 | 1.9 | 2.7 | ||||||||
Asset impairment expense | 2.9 | 9 | 1.1 | ||||||||
Earnings from operations | 108.3 | 122.7 | 127 | ||||||||
Interest expense | (1.2) | (1.2) | (1.2) | ||||||||
Interest expense (income) on notes with MTW — net | 0 | (14.9) | (17.3) | ||||||||
Other expense (income) — net | 19.6 | 77.8 | (4.2) | ||||||||
Equity in earnings (loss) of subsidiaries | 114 | 77.9 | 65.7 | ||||||||
Earnings before income taxes | 201.5 | 136.5 | 213 | ||||||||
Income taxes | 1 | 13.3 | 21 | ||||||||
Net earnings | 200.5 | 123.2 | 192 | ||||||||
Net current period other comprehensive (loss) income | 3 | (27.7) | (17.7) | ||||||||
Comprehensive income | 203.5 | 95.5 | 174.3 | ||||||||
Non- Guarantor Subsidiaries | |||||||||||
Net sales | 782.2 | 809.9 | 836.5 | ||||||||
Cost of sales | 540.1 | 614.3 | 629.9 | ||||||||
Gross profit | 242.1 | 195.6 | 206.6 | ||||||||
Selling, general and administrative expenses | 101.7 | 114.8 | 128.3 | ||||||||
Amortization expense | 2.8 | 2.9 | 3.3 | ||||||||
Separation expense | 0.2 | 1.3 | 0.3 | ||||||||
Restructuring expense | 0.9 | 2.7 | (0.1) | ||||||||
Asset impairment expense | 0.4 | 0 | 0 | ||||||||
Earnings from operations | 136.1 | 73.9 | 74.8 | ||||||||
Interest expense | (1.8) | (0.2) | (0.1) | ||||||||
Interest expense (income) on notes with MTW — net | 0.1 | (0.9) | 0.7 | ||||||||
Other expense (income) — net | (4.9) | (21.3) | (1.5) | ||||||||
Equity in earnings (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
Earnings before income taxes | 139.1 | 95.9 | 75.5 | ||||||||
Income taxes | 25.1 | 18 | 9.8 | ||||||||
Net earnings | 114 | 77.9 | 65.7 | ||||||||
Net current period other comprehensive (loss) income | 7.3 | (26.9) | (18.1) | ||||||||
Comprehensive income | $ 121.3 | $ 51 | $ 47.6 |
Subsidiary Guarantors of Sen124
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ||||
Cash and cash equivalents | $ 53.8 | $ 32 | $ 16.5 | $ 9.6 |
Restricted cash | 6.4 | 0.6 | ||
Accounts receivable — net | 81.7 | 63.8 | ||
Intercompany interest receivable | 0 | |||
Intercompany short-term note receivable | 0 | |||
Inventories — net | 145.6 | 145.9 | ||
Prepaids and other current assets | 13.9 | 10.3 | ||
Current assets held for sale | 6.8 | 0 | ||
Total current assets | 308.2 | 252.6 | ||
Property, plant and equipment — net | 109.1 | 116.4 | ||
Goodwill | 845.3 | 845.8 | 872.8 | |
Other intangible assets — net | 484.4 | 519.6 | ||
Intercompany long-term note receivable | 0 | 0 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 22.1 | 15.9 | ||
Long-term assets held for sale | 0 | 3.7 | ||
Total assets | 1,769.1 | 1,754 | ||
Current Liabilities: | ||||
Accounts payable | 108.4 | 121.7 | ||
Accrued expenses and other liabilities | 174.5 | 164.9 | ||
Current portion of capital leases | 1.6 | 0.4 | ||
Intercompany interest payable | 0 | |||
Intercompany short-term note payable | 0 | |||
Product warranties | 27.9 | 34.3 | ||
Current liabilities held for sale | 0.7 | 0 | ||
Total current liabilities | 313.1 | 321.3 | ||
Long-term debt and capital leases | 1,278.7 | 2.3 | ||
Deferred income taxes | 137.8 | 167.9 | ||
Pension and postretirement health obligations | 47.4 | 33.3 | ||
Intercompany long-term note payable | 0 | 0 | ||
Due to affiliates | 0 | 0 | ||
Accounts Payable of Affiliates Subsidiaries and Holding Companies | 0 | |||
Investment in subsidiaries | 0 | |||
Other long-term liabilities | 35.6 | 20.5 | ||
Total non-current liabilities | 1,499.5 | 224 | ||
Equity [Abstract] | ||||
Total (deficit) equity | (43.5) | 1,208.7 | ||
Total liabilities and equity | 1,769.1 | 1,754 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable — net | (4.9) | (9.6) | ||
Intercompany interest receivable | (4.2) | |||
Intercompany short-term note receivable | (31) | |||
Inventories — net | 0 | 0 | ||
Prepaids and other current assets | 0 | (2.2) | ||
Current assets held for sale | 0 | |||
Total current assets | (4.9) | (47) | ||
Property, plant and equipment — net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets — net | 0 | 0 | ||
Intercompany long-term note receivable | (20) | (42.4) | ||
Due from affiliates | (3,085.8) | (3,074.9) | ||
Investment in subsidiaries | (3,780.3) | (3,579.8) | ||
Other non-current assets | (5.4) | (59) | ||
Long-term assets held for sale | 0 | |||
Total assets | (6,896.4) | (6,803.1) | ||
Current Liabilities: | ||||
Accounts payable | (4.9) | (9.6) | ||
Accrued expenses and other liabilities | 0 | (2.2) | ||
Current portion of capital leases | 0 | 0 | ||
Intercompany interest payable | (4.2) | |||
Intercompany short-term note payable | (31) | |||
Product warranties | 0 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | (4.9) | (47) | ||
Long-term debt and capital leases | 0 | 0 | ||
Deferred income taxes | 0 | (51) | ||
Pension and postretirement health obligations | (5.4) | (8) | ||
Intercompany long-term note payable | (20) | (42.4) | ||
Due to affiliates | (3,085.8) | (3,074.9) | ||
Accounts Payable of Affiliates Subsidiaries and Holding Companies | (524.6) | |||
Investment in subsidiaries | (638.6) | |||
Other long-term liabilities | 0 | 0 | ||
Total non-current liabilities | (3,635.8) | (3,814.9) | ||
Equity [Abstract] | ||||
Total (deficit) equity | (3,255.7) | (2,941.2) | ||
Total liabilities and equity | (6,896.4) | (6,803.1) | ||
Parent | ||||
Current Assets: | ||||
Cash and cash equivalents | 0.4 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable — net | 0.5 | 0 | ||
Intercompany interest receivable | 0 | |||
Intercompany short-term note receivable | 0 | |||
Inventories — net | 0 | 0 | ||
Prepaids and other current assets | 0.9 | 1.2 | ||
Current assets held for sale | 0 | |||
Total current assets | 1.8 | 1.2 | ||
Property, plant and equipment — net | 1.2 | 0.9 | ||
Goodwill | 0 | 0 | ||
Other intangible assets — net | 0 | 0 | ||
Intercompany long-term note receivable | 0 | 0 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 3,780.3 | 3,579.8 | ||
Other non-current assets | 2.7 | 0 | ||
Long-term assets held for sale | 0 | |||
Total assets | 3,786 | 3,581.9 | ||
Current Liabilities: | ||||
Accounts payable | 0.1 | 0 | ||
Accrued expenses and other liabilities | 14.1 | 0.1 | ||
Current portion of capital leases | 0 | 0 | ||
Intercompany interest payable | 0 | |||
Intercompany short-term note payable | 0 | |||
Product warranties | 0 | 0 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 14.2 | 0.1 | ||
Long-term debt and capital leases | 1,277 | 0 | ||
Deferred income taxes | 120.5 | 155.4 | ||
Pension and postretirement health obligations | 47.9 | 35 | ||
Intercompany long-term note payable | 15.7 | 0 | ||
Due to affiliates | 2,344.8 | 2,176.9 | ||
Accounts Payable of Affiliates Subsidiaries and Holding Companies | 0 | |||
Investment in subsidiaries | 0 | |||
Other long-term liabilities | 9.4 | 5.8 | ||
Total non-current liabilities | 3,815.3 | 2,373.1 | ||
Equity [Abstract] | ||||
Total (deficit) equity | (43.5) | 1,208.7 | ||
Total liabilities and equity | 3,786 | 3,581.9 | ||
Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 2.3 | 3.5 | 2.7 | 0.2 |
Restricted cash | 0 | 0 | ||
Accounts receivable — net | 0 | 0 | ||
Intercompany interest receivable | 0 | |||
Intercompany short-term note receivable | 0 | |||
Inventories — net | 74.3 | 80.2 | ||
Prepaids and other current assets | 4.5 | 2.3 | ||
Current assets held for sale | 2.3 | |||
Total current assets | 83.4 | 86 | ||
Property, plant and equipment — net | 67.9 | 71.2 | ||
Goodwill | 832.4 | 832.4 | ||
Other intangible assets — net | 423.5 | 452.1 | ||
Intercompany long-term note receivable | 20 | 0 | ||
Due from affiliates | 3,085.8 | 3,074.9 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 5.1 | 3.1 | ||
Long-term assets held for sale | 3.7 | |||
Total assets | 4,518.1 | 4,523.4 | ||
Current Liabilities: | ||||
Accounts payable | 64.6 | 81.8 | ||
Accrued expenses and other liabilities | 97.5 | 100.1 | ||
Current portion of capital leases | 0.5 | 0.4 | ||
Intercompany interest payable | 4.2 | |||
Intercompany short-term note payable | 31 | |||
Product warranties | 18.4 | 23.8 | ||
Current liabilities held for sale | 0 | |||
Total current liabilities | 181 | 241.3 | ||
Long-term debt and capital leases | 1.7 | 2.3 | ||
Deferred income taxes | 0 | 0 | ||
Pension and postretirement health obligations | 4.9 | 6.3 | ||
Intercompany long-term note payable | 0 | 42.4 | ||
Due to affiliates | 0 | 0 | ||
Accounts Payable of Affiliates Subsidiaries and Holding Companies | 524.6 | |||
Investment in subsidiaries | 638.6 | |||
Other long-term liabilities | 25.6 | 12.7 | ||
Total non-current liabilities | 556.8 | 702.3 | ||
Equity [Abstract] | ||||
Total (deficit) equity | 3,780.3 | 3,579.8 | ||
Total liabilities and equity | 4,518.1 | 4,523.4 | ||
Non- Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 51.1 | 28.5 | $ 13.8 | $ 9.4 |
Restricted cash | 6.4 | 0.6 | ||
Accounts receivable — net | 86.1 | 73.4 | ||
Intercompany interest receivable | 4.2 | |||
Intercompany short-term note receivable | 31 | |||
Inventories — net | 71.3 | 65.7 | ||
Prepaids and other current assets | 8.5 | 9 | ||
Current assets held for sale | 4.5 | |||
Total current assets | 227.9 | 212.4 | ||
Property, plant and equipment — net | 40 | 44.3 | ||
Goodwill | 12.9 | 13.4 | ||
Other intangible assets — net | 60.9 | 67.5 | ||
Intercompany long-term note receivable | 0 | 42.4 | ||
Due from affiliates | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other non-current assets | 19.7 | 71.8 | ||
Long-term assets held for sale | 0 | |||
Total assets | 361.4 | 451.8 | ||
Current Liabilities: | ||||
Accounts payable | 48.6 | 49.5 | ||
Accrued expenses and other liabilities | 62.9 | 66.9 | ||
Current portion of capital leases | 1.1 | 0 | ||
Intercompany interest payable | 0 | |||
Intercompany short-term note payable | 0 | |||
Product warranties | 9.5 | 10.5 | ||
Current liabilities held for sale | 0.7 | |||
Total current liabilities | 122.8 | 126.9 | ||
Long-term debt and capital leases | 0 | 0 | ||
Deferred income taxes | 17.3 | 63.5 | ||
Pension and postretirement health obligations | 0 | 0 | ||
Intercompany long-term note payable | 4.3 | 0 | ||
Due to affiliates | 741 | 898 | ||
Accounts Payable of Affiliates Subsidiaries and Holding Companies | 0 | |||
Investment in subsidiaries | 0 | |||
Other long-term liabilities | 0.6 | 2 | ||
Total non-current liabilities | 763.2 | 963.5 | ||
Equity [Abstract] | ||||
Total (deficit) equity | (524.6) | (638.6) | ||
Total liabilities and equity | $ 361.4 | $ 451.8 |
Subsidiary Guarantors of Sen125
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 - Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed consolidating statement of cash flows | |||
Net cash provided by operating activities | $ 122 | $ 143 | $ 200.2 |
Cash flows from investing activities | |||
Capital expenditures | (16) | (13.2) | (25.3) |
Changes in restricted cash | (6) | (0.6) | 0 |
Business acquisitions, net of cash acquired | 0 | (5.3) | 0 |
Proceeds from dispositions | 1.6 | 78.2 | |
Intercompany investment | 0 | 0 | 0 |
Net cash (used for) provided by investing activities | (20.4) | 59.1 | (25.3) |
Cash Flows from Financing: | |||
Proceeds from long-term debt and capital leases | 1,501.1 | 0.5 | 3.1 |
Repayments on long-term debt and capital leases | (186.8) | (0.7) | (3.4) |
Debt issuance costs | (41.3) | 0 | 0 |
Dividend paid to MTW | (1,362) | 0 | 0 |
Net transactions with MTW | (6.1) | (182.9) | (166.7) |
Exercises of stock options | 16.2 | 0 | 0 |
Intercompany financing | 0 | 0 | 0 |
Proceeds from capital leases | 0.5 | 3.1 | |
Repayments on capital leases | (0.7) | (3.4) | |
Net cash used for financing activities | (78.9) | (183.1) | (167) |
Effect of exchange rate changes on cash | (0.9) | (3.5) | (1) |
Net increase in cash and cash equivalents | 21.8 | 15.5 | 6.9 |
Balance at beginning of year | 32 | 16.5 | 9.6 |
Balance at end of year | 53.8 | 32 | 16.5 |
Eliminations | |||
Condensed consolidating statement of cash flows | |||
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | 0 |
Changes in restricted cash | 0 | 0 | |
Business acquisitions, net of cash acquired | 0 | ||
Proceeds from dispositions | 0 | 0 | |
Intercompany investment | 183.8 | 193.2 | 82.7 |
Net cash (used for) provided by investing activities | 183.8 | 193.2 | 82.7 |
Cash Flows from Financing: | |||
Proceeds from long-term debt and capital leases | 0 | ||
Repayments on long-term debt and capital leases | 0 | ||
Debt issuance costs | 0 | ||
Dividend paid to MTW | 0 | ||
Net transactions with MTW | 0 | 0 | 0 |
Exercises of stock options | 0 | ||
Intercompany financing | (183.8) | (193.2) | (82.7) |
Proceeds from capital leases | 0 | 0 | |
Repayments on capital leases | 0 | 0 | |
Net cash used for financing activities | (183.8) | (193.2) | (82.7) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 | 0 |
Balance at beginning of year | 0 | 0 | 0 |
Balance at end of year | 0 | 0 | 0 |
Parent | |||
Condensed consolidating statement of cash flows | |||
Net cash provided by operating activities | (102.7) | 376.9 | 159.1 |
Cash flows from investing activities | |||
Capital expenditures | (1) | (0.8) | 0 |
Changes in restricted cash | 0 | 0 | |
Business acquisitions, net of cash acquired | 0 | ||
Proceeds from dispositions | 0 | 0 | |
Intercompany investment | 0 | (193.2) | 0 |
Net cash (used for) provided by investing activities | (1) | (194) | 0 |
Cash Flows from Financing: | |||
Proceeds from long-term debt and capital leases | 1,499.5 | ||
Repayments on long-term debt and capital leases | (186) | ||
Debt issuance costs | (41.3) | ||
Dividend paid to MTW | (1,362) | ||
Net transactions with MTW | (6.1) | (182.9) | (166.7) |
Exercises of stock options | 16.2 | ||
Intercompany financing | 183.8 | 0 | 7.6 |
Proceeds from capital leases | 0 | 0 | |
Repayments on capital leases | 0 | 0 | |
Net cash used for financing activities | 104.1 | (182.9) | (159.1) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase in cash and cash equivalents | 0.4 | 0 | 0 |
Balance at beginning of year | 0 | 0 | 0 |
Balance at end of year | 0.4 | 0 | 0 |
Guarantor Subsidiaries | |||
Condensed consolidating statement of cash flows | |||
Net cash provided by operating activities | 111.5 | (137.6) | (54) |
Cash flows from investing activities | |||
Capital expenditures | (8) | (6.5) | (18.3) |
Changes in restricted cash | 0 | 0 | |
Business acquisitions, net of cash acquired | 0 | ||
Proceeds from dispositions | 0 | 78.2 | |
Intercompany investment | (104.4) | 0 | 0 |
Net cash (used for) provided by investing activities | (112.4) | 71.7 | (18.3) |
Cash Flows from Financing: | |||
Proceeds from long-term debt and capital leases | 0.2 | ||
Repayments on long-term debt and capital leases | (0.5) | ||
Debt issuance costs | 0 | ||
Dividend paid to MTW | 0 | ||
Net transactions with MTW | 0 | 0 | 0 |
Exercises of stock options | 0 | ||
Intercompany financing | 0 | 66.9 | 75.1 |
Proceeds from capital leases | 0.5 | 3.1 | |
Repayments on capital leases | (0.7) | (3.4) | |
Net cash used for financing activities | (0.3) | 66.7 | 74.8 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase in cash and cash equivalents | (1.2) | 0.8 | 2.5 |
Balance at beginning of year | 3.5 | 2.7 | 0.2 |
Balance at end of year | 2.3 | 3.5 | 2.7 |
Non- Guarantor Subsidiaries | |||
Condensed consolidating statement of cash flows | |||
Net cash provided by operating activities | 113.2 | (96.3) | 95.1 |
Cash flows from investing activities | |||
Capital expenditures | (7) | (5.9) | (7) |
Changes in restricted cash | (6) | (0.6) | |
Business acquisitions, net of cash acquired | (5.3) | ||
Proceeds from dispositions | 1.6 | 0 | |
Intercompany investment | (79.4) | 0 | (82.7) |
Net cash (used for) provided by investing activities | (90.8) | (11.8) | (89.7) |
Cash Flows from Financing: | |||
Proceeds from long-term debt and capital leases | 1.4 | ||
Repayments on long-term debt and capital leases | (0.3) | ||
Debt issuance costs | 0 | ||
Dividend paid to MTW | 0 | ||
Net transactions with MTW | 0 | 0 | 0 |
Exercises of stock options | 0 | ||
Intercompany financing | 0 | 126.3 | 0 |
Proceeds from capital leases | 0 | 0 | |
Repayments on capital leases | 0 | 0 | |
Net cash used for financing activities | 1.1 | 126.3 | 0 |
Effect of exchange rate changes on cash | (0.9) | (3.5) | (1) |
Net increase in cash and cash equivalents | 22.6 | 14.7 | 4.4 |
Balance at beginning of year | 28.5 | 13.8 | 9.4 |
Balance at end of year | $ 51.1 | $ 28.5 | $ 13.8 |
Schedule II_ Valuation and Q126
Schedule II: Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Year | $ 4 | $ 3.9 | $ 3.1 |
Charge to Costs and Expenses | 1.7 | 2.5 | 4.2 |
Utilization of Reserve | (0.3) | (2.2) | (3.2) |
Other, Primarily Impact of Foreign Exchange Rates | (0.1) | (0.2) | (0.2) |
Balance at end of Year | 5.3 | 4 | 3.9 |
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts | |||
Balance at Beginning of Year | 80.1 | 113.1 | 80.2 |
Charge to Costs and Expenses | 2.7 | (0.5) | 36.3 |
Utilization of Reserve | (18.2) | (28.2) | (0.4) |
Other, Primarily Impact of Foreign Exchange Rates | (4.7) | (4.3) | (3) |
Balance at end of Year | $ 59.9 | $ 80.1 | $ 113.1 |