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DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | 9 Months Ended
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Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE | DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE Mobile Cranes Disposal Group On July 31, 2019, the Company completed the disposition of Demag to Tadano. The Company received approximately $215 million of consideration, as adjusted for estimated amounts of cash, debt, working capital and certain other items. Products divested were Demag® all terrain cranes and large lattice boom crawler cranes. During the three months ended September 30, 2020, the Company recognized a loss, net of tax, of $16.1 million primarily related to a settlement with Tadano on cash, debt, working capital and certain other items related to the disposition of Demag. During the nine months ended September 30, 2019, the Company recognized a charge of approximately $82 million, net of tax, to write-down Demag to its fair value, less costs to sell. During the three and nine months ended September 30, 2019, the Company recorded a loss on disposition of discontinued operations, net of tax, of $20.9 million related to this transaction. During 2019, the Company also exited North American mobile crane product lines manufactured in its Oklahoma City facility and recognized a gain, net of tax, of $12.8 million related to the sale during the nine months ended September 30, 2019. The Company’s actions to sell Demag and cease manufacturing of 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 were necessary to execute its strategy. In connection with the disposition of Demag, the Company entered into certain ancillary agreements with Tadano including a Transition Services Agreement (“TSA”), dated as of July 31, 2019, under which the parties will provide one another certain transition services to facilitate the separation of Demag from the Company. At September 30, 2020, all significant agreements covered under the TSA have terminated. 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 September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Net sales | $ | — |  |  | $ | 67.7 |  |  | $ | 5.5 |  |  | $ | 324.8 |
Cost of sales | (0.2) |  |  | (67.9) |  |  | (5.7) |  |  | (330.8) |
Selling, general and administrative expenses | (0.2) |  |  | (12.0) |  |  | (1.6) |  |  | (73.6) |
Impairment of mobile cranes disposal group | — |  |  | — |  |  | (0.1) |  |  | (82.1) |
Other income (expense) | — |  |  | (0.8) |  |  | (0.1) |  |  | (4.5) |
Income (loss) from discontinued operations before income taxes | (0.4) |  |  | (13.0) |  |  | (2.0) |  |  | (166.2) |
(Provision for) benefit from income taxes | 0.3 |  |  | 2.9 |  |  | 0.7 |  |  | 14.4 |
Income (loss) from discontinued operations – net of tax | $ | (0.1) |  |  | $ | (10.1) |  |  | $ | (1.3) |  |  | $ | (151.8) |
Assets and Liabilities Held for Sale Assets and liabilities held for sale consist of the Company’s utility hot lines tools business located in South America, mobile cranes product lines manufactured in Oklahoma City and Demag, all previously contained in its former Cranes segment. 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):
|  |  | September 30, 2020 |  | December 31, 2019 |  |  |  |
|  |  | Cranes |  |  | Cranes |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | $ | 4.3 |  |  |  | $ | 5.0 |  |  |  |  |
Trade receivables – net |  |  | 3.0 |  |  |  | 3.5 |  |  |  |  |
Inventories |  |  | 2.2 |  |  |  | 5.3 |  |  |  |  |
Prepaid and other current assets |  |  | 0.2 |  |  |  | 0.2 |  |  |  |  |
Impairment reserve |  |  | (3.4) |  |  |  | (4.8) |  |  |  |  |
Included in Prepaid and other current assets |  |  | $ | 6.3 |  |  |  | $ | 9.2 |  |  |  |  |
Property, plant and equipment – net |  |  | $ | 0.6 |  |  |  | $ | 0.6 |  |  |  |  |
Intangible assets |  |  | 1.7 |  |  |  | 2.4 |  |  |  |  |
Impairment reserve |  |  | (2.0) |  |  |  | (2.8) |  |  |  |  |
Other assets |  |  | 0.1 |  |  |  | 0.4 |  |  |  |  |
Included in Other assets |  |  | $ | 0.4 |  |  |  | $ | 0.6 |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |
Trade accounts payable |  |  | $ | 1.1 |  |  |  | $ | 4.6 |  |  |  |  |
Accruals and other current liabilities |  |  | 2.0 |  |  |  | 3.8 |  |  |  |  |
Included in Other current liabilities |  |  | $ | 3.1 |  |  |  | $ | 8.4 |  |  |  |  |
Non-current liabilities |  |  | $ | 0.9 |  |  |  | $ | 1.2 |  |  |  |  |
Included in Other non-current liabilities |  |  | $ | 0.9 |  |  |  | $ | 1.2 |  |  |  |  |
The following table provides amounts of cash and cash equivalents presented in the Condensed Consolidated Statement of Cash Flows (in millions):
| September 30, 2020 |  | December 31, 2019 |  |  |  |
Cash and cash equivalents: |  |  |  |  |  |  |
Cash and cash equivalents - continuing operations | $ | 508.3 |  |  | $ | 535.1 |  |  |  |  |
Cash and cash equivalents - held for sale | 4.3 |  |  | 5.0 |  |  |  |  |
Total cash and cash equivalents | $ | 512.6 |  |  | $ | 540.1 |  |  |  |  |
The following table provides supplemental cash flow information related to discontinued operations (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Non-cash operating items: |  |  |  |  |  |  |
Depreciation and amortization | $ | — |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 3.3 |
Impairments | $ | — |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 82.1 |
Deferred taxes | $ | (0.1) |  |  | $ | (7.3) |  |  | $ | 0.2 |  |  | $ | (5.2) |
Investing activities: |  |  |  |  |  |  |
Capital expenditures | $ | — |  |  | $ | (0.7) |  |  | $ | — |  |  | $ | (3.4) |
Gain (Loss) on Disposition of Discontinued Operations - net of tax (in millions):
|  | Three Months Ended |  |
|  | September 30, |  |
|  | 2020 |  | 2019 |  |  |  |
|  | Cranes |  |  |  |  | Cranes | Material Handling and Port Solutions |  |  | Total |  |  |  |  |  |  |  |  |
Gain (loss) on disposition of discontinued operations |  | $ | (20.5) |  |  |  |  |  | $ | (20.8) |  | $ | — |  |  |  | $ | (20.8) |  |  |  |  |  |  |  |  |  |
(Provision for) benefit from income taxes |  | 4.4 |  |  |  |  |  | (0.1) |  | — |  |  |  | (0.1) |  |  |  |  |  |  |  |  |  |
Gain (loss) on disposition of discontinued operations – net of tax |  | $ | (16.1) |  |  |  |  |  | $ | (20.9) |  | $ | — |  |  |  | $ | (20.9) |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Nine Months Ended
|  |  |  |  |  |  |  |  |  | September 30,
|  |  |  |  |  |  |  |  |  | 2020 |  | 2019
|  |  |  |  |  |  |  |  |  | Cranes |  |  |  |  | Cranes | Material Handling and Port Solutions |  |  | Total
Gain (loss) on disposition of discontinued operations |  |  |  |  |  |  |  |  |  | $ | (27.7) |  |  |  |  |  | $ | (7.1) |  | $ | (1.3) |  |  |  | $ | (8.4) |
(Provision for) benefit from income taxes |  |  |  |  |  |  |  |  |  | 6.6 |  |  |  |  |  | (1.0) |  | (0.1) |  |  |  | (1.1) |
Gain (loss) on disposition of discontinued operations – net of tax |  |  |  |  |  |  |  |  |  | $ | (21.1) |  |  |  |  |  | $ | (8.1) |  | $ | (1.4) |  |  |  | $ | (9.5) |

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- References No definition available. + Details
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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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