DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE

MOBILE CRANES

On February 22, 2019, the Company entered into the ASPA with Tadano to sell its Demag^® mobile cranes business for an enterprise value of $215 million (the “Transaction”). Consideration will be paid in cash and cash received will be net of indebtedness. The purchase price is subject to post-closing adjustments based upon the level of net working capital and cash and debt in the Demag^® mobile cranes business at the closing date. Products to be divested are Demag^® all terrain cranes and large lattice boom crawler cranes. The Transaction, which is subject to governmental regulatory approvals and other customary closing conditions, is targeted to close in mid-2019. In addition to selling its Demag^® mobile cranes business, the Company will cease to manufacture mobile crane product lines in its Oklahoma City facility.

As a result of the Transaction, the Company recognized a pre-tax charge of approximately $86 million ($86 million after-tax) in the first quarter of 2019 to write-down the Demag^® mobile cranes business to its fair value, less costs to sell. This charge includes approximately $28 million attributable to amounts previously recognized in accumulated other comprehensive income.

The Company’s actions to sell the Demag^® mobile cranes business and cease manufacturing mobile crane product lines in its Oklahoma City facility represent a significant strategic shift in its business away from mobile cranes as these businesses constituted a significant part of its operations and financial results.

The Company believes these actions are necessary as it continues to execute its Focus, Simplify and Execute to Win strategy as further described in Part I, Item 1. “Business” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

On April 24, 2019, the Company sold its boom truck, truck crane and crossover product lines previously manufactured in its Oklahoma City facility.

Income (loss) from discontinued operations

The following amounts related to discontinued operations were derived from historical financial information and have been segregated from continuing operations and reported as discontinued operations in the Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions):



	Three Months Ended March 31,
	Three Months Ended March 31,
	2019			2018
Net sales	$	125.9		$	144.3
Cost of sales	(140.3		)	(142.0		)
Selling, general and administrative expenses	(31.0		)	(25.3		)
Impairment of Mobile Cranes disposal group	(86.1		)	—
Other income (expense)	(2.3		)	(0.9		)
Income (loss) from discontinued operations before income taxes	(133.8		)	(23.9		)
(Provision for) benefit from income taxes	9.4			2.8
Income (loss) from discontinued operations – net of tax	(124.4		)	(21.1		)

Assets and liabilities held for sale

Assets and liabilities held for sale consist of assets and liabilities of the Company’s Demag^® mobile cranes business, its mobile cranes product lines manufactured in Oklahoma City and its utility hot lines tools business located in South America, all previously contained in its former Cranes segment, which are expected to be sold within one year. Such assets and liabilities are classified as held for sale upon meeting the requirements of ASC 360 - “Property, Plant and Equipment”, and are recorded at lower of carrying amounts or fair value less costs to sell. Assets are no longer depreciated once classified as held for sale. The following table provides the amounts of assets and liabilities held for sale in the Condensed Consolidated Balance Sheet (in millions):



	March 31, 2019			December 31, 2018
	Cranes			Cranes
Assets
Cash and cash equivalents	$	25.6		$	32.6
Trade receivables – net	84.5			126.9
Inventories	299.7			295.5
Prepaid and other current assets	11.3			9.4
Impairment reserve	(14.5		)	(4.9		)
Current assets held for sale	$	406.6		$	459.5

Property, plant and equipment – net	$	28.0		$	28.8
Intangible assets	4.2			4.3
Impairment reserve	(79.3		)	(2.9		)
Other assets	53.9			38.2
Non-current assets held for sale	$	6.8		$	68.4

Liabilities
Notes payable and current portion of long-term debt	$	0.6		$	0.6
Trade accounts payable	77.5			101.6
Accruals and other current liabilities	64.3			77.3
Current liabilities held for sale	$	142.4		$	179.5

Long-term debt, less current portion	$	3.8		$	4.1
Retirement plans and other non-current liabilities	68.5			71.8
Non-current liabilities	18.0			10.6
Non-current liabilities held for sale	$	90.3		$	86.5

The following table provides amounts of cash and cash equivalents presented in the Condensed Consolidated Statement of Cash Flows (in millions):



	March 31, 2019		December 31, 2018
Cash and cash equivalents:
Cash and cash equivalents - continuing operations	$	304.6	$	339.5
Cash and cash equivalents - held for sale	25.6		32.6
Total cash and cash equivalents	$	330.2	$	372.1

The following table provides supplemental cash flow information related to discontinued operations (in millions):



	Three Months Ended March 31,
	Three Months Ended March 31,
	2019			2018
Non-cash operating items:
Depreciation and amortization	$	2.2		$	3.9
Impairments	$	86.1		$	0.2
Deferred taxes	$	(3.3	)	$	(0.2	)
Investing activities:
Capital expenditures	$	(1.6	)	$	(3.2	)

Gain (loss) on disposition of discontinued operations - net of tax (in millions):



	Three Months Ended
	March 31,
	2019			2018
	Material Handling and Port Solutions			Atlas
Gain (loss) on disposition of discontinued operations	$	(1.3	)	$	3.2
(Provision for) benefit from income taxes	1.9			(0.5		)
Gain (loss) on disposition of discontinued operations – net of tax	$	0.6		$	2.7