Discontinued Operations

9 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On March 4, 2016, Manitowoc completed the Spin-Off of MFS. The financial results of MFS are presented as income (loss) from discontinued operations, net of income taxes in the Condensed Consolidated Statements of Operations. The following table presents the financial results of MFS through the date of the Spin-Off for the indicated periods and do not include corporate overhead allocations:

Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS
	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2016			2015		2016			2015
Net sales	$	—		$	425.3	$	219.6		$	1,178.4
Cost of sales	—			289.5		141.5			807.9
Engineering, selling and administrative expenses	—			66.8		48.3			207.9
Amortization expense	—			7.8		5.2			23.5
Restructuring expense	—			0.8		0.3			1.2
Separation expense	—			10.0		27.7			19.8
Other	—			—		—			0.5
Total operating costs and expenses	—			374.9		223.0			1,060.8
(Loss) earnings from operations	—			50.4		(3.4		)	117.6
Other (expense) income	—			1.2		(1.8		)	3.4
(Loss) earnings from discontinued operations before income taxes	—			51.6		(5.2		)	121.0
(Benefit) provision for taxes on earnings	1.8			17.2		0.5			41.9
(Loss) earnings from discontinued operations, net of income taxes	$	(1.8	)	$	34.4	$	(5.7	)	$	79.1

The assets and liabilities of MFS have been classified as discontinued operations as of December 31, 2015. No assets or liabilities of MFS are reflected on the Company's Condensed Consolidated Balance Sheet as of September 30, 2016. These amounts consisted of the following carrying amounts in each major class at December 31, 2015:

Carrying amounts of major classes of assets and liabilities included as part of discontinued operations related to MFS
(in millions)	December 31, 2015
Assets
Cash and temporary investments	$	31.9
Restricted cash	0.6
Accounts receivable - net	63.8
Inventories - net	145.9
Other current assets	12.0
Property, plant and equipment - net	116.3
Goodwill	845.8
Other intangible assets - net	519.5
Other long-term assets	16.2
Long-term assets held for sale	3.7
Total major classes of assets of discontinued operations	$	1,755.7
Liabilities
Accounts payable and accrued expenses	$	271.6
Current portion of long-term debt	0.4
Other current liabilities	40.0
Long-term debt	2.3
Deferred income taxes	167.9
Pension	29.3
Postretirement health and other benefit obligations	3.0
Other non-current liabilities	17.3
Total major classes of liabilities of discontinued operations	$	531.8

Manitowoc and MFS entered into several agreements in connection with the separation, including a transition services agreement ("TSA"), separation and distribution agreement, tax matters agreement, intellectual property matters agreement, and an employee matters agreement.

Pursuant to the TSA, Manitowoc, MFS and their respective subsidiaries are providing various services to each other on an interim, transitional basis. Services being provided by Manitowoc include, among others, finance, information technology and certain other administrative services. The services generally commenced on March 4, 2016 and are expected to terminate within 12 months of that date. Billings by Manitowoc under the TSA are recorded as a reduction of the costs to provide the respective service in the applicable expense category.

The Company did not record any separation costs related to the Spin-Off during the three months ended September 30, 2016. During the three months ended September 30, 2015, the Company recorded $10.0 million of separation costs related to the Spin-Off. During the nine months ended September 30, 2016 and 2015 the Company recorded $27.7 million and $19.8 million, respectively, of separation costs related to the Spin-Off. Separation costs consist primarily of professional and consulting fees, and are included in the results of discontinued operations.

In each of the nine months ended September 30, 2016 and 2015, the Company recorded $0.1 million in expenses of various other businesses disposed of prior to 2014, consisting primarily of administrative costs. There were no expenses recorded in the three months ended September 30, 2016 and 2015 related to those other businesses. This is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the businesses operated as stand-alone entities.