ACQUISITIONS AND DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

ACQUISITIONS AND DISCONTINUED OPERATIONS

Acquisitions

On July 6, 2021, the Company acquired all of the outstanding shares of Murray Design & Engineering, Ltd (“MDS”), a manufacturer of heavy duty aggregate and recycling trommels, apron feeders and conveyor systems, based in the Republic of Ireland. Total cash consideration transferred was approximately $19 million. The transaction was recorded as a business combination using the acquisition method which requires measurement of identifiable assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. Goodwill was calculated as the excess of the aggregate of the fair value of the consideration transferred over the fair value of the net assets recognized. See Note H – “Goodwill and Intangible Assets, Net” for additional information regarding goodwill recognized as a result of the acquisition. MDS’s results of operations are consolidated within the MP segment in the consolidated financial statements from the date of acquisition.

On May 25, 2021, the Company acquired assets to facilitate manufacturing of certain MP products in China. Total cash consideration transferred was approximately $17 million. The transaction was recorded as an asset acquisition at cost, with the consideration allocated to individual assets acquired.

Dispositions

On November 30, 2021, the Company sold its utility hot lines tools business located in South America, which had been recorded as assets and liabilities held for sale prior to its disposition. The Company received consideration of $5.8 million from the sale at fair value and recognized a gain of $6.4 million included in SG&A in the Consolidated Statement of Income (Loss). Prior to disposition, the results of operations for the hot lines tools business, including any impairment reserves taken, were consolidated within the AWP segment in the consolidated financial statements.

On July 31, 2019, the Company completed the disposition of Demag® mobile cranes business to Tadano Ltd. and certain of its subsidiaries. During 2019, the Company also exited North American mobile crane product lines manufactured in its Oklahoma City facility. The Company’s actions to sell Demag and cease manufacturing of mobile crane product lines in its Oklahoma City facility represented 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. As a result, the Company reported these operations, formerly part of the Cranes segment, in discontinued operations in the Consolidated Statement of Income (Loss) for all periods presented.

Income (Loss) from Discontinued Operations

The Company reported certain operations, formerly part of the Cranes segment, in discontinued operations in the Consolidated Statement of Income (Loss) for all periods presented. The following information was derived from historical financial information and has been segregated from continuing operations (in millions):


	Year ended December 31,
		2020		2019

Net sales		$	6.0	$	327.2
Cost of sales		(5.8)		(335.2)
Selling, general and administrative expenses		(0.9)		(75.6)
Impairment of mobile cranes disposal group		—		(82.1)
Asset impairments		(0.1)		—

Other income (expense)		—		(4.5)
Income (loss) from discontinued operations before income taxes		(0.8)		(170.2)
(Provision for) benefit from income taxes		0.4		14.8

Income (loss) from discontinued operations – net of tax		$	(0.4)	$	(155.4)

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


	Year Ended December 31,
		2020		2019
Non-cash operating items:
Depreciation and amortization		$	—	$	3.3

Deferred taxes		$	0.1	$	(1.4)

Impairments		$	0.1	$	82.1
Investing activities:
Capital expenditures		$	—	$	(3.4)

Gain (Loss) on Disposition of Discontinued Operations - net of tax (in millions)


	Year Ended December 31,
	2021				2020						2019






	Cranes		MHPS		Total		Cranes		MHPS			Total		Cranes		MHPS		Other		Total
Gain (loss) on disposition of discontinued operations	$	1.4	$	1.2	$	2.6	$	(27.7)	$	(0.4)		$	(28.1)	$	(1.0)	$	(4.6)	$	—	$	(5.6)
(Provision for) benefit from income taxes	0.1		0.7		0.8		8.8		0.1			8.9		2.2		3.4		0.1		5.7
Gain (loss) on disposition of discontinued operations – net of tax	$	1.5	$	1.9	$	3.4	$	(18.9)	$	(0.3)		$	(19.2)	$	1.2	$	(1.2)	$	0.1	$	0.1