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Discontinued Operations
 6 Months Ended
Jun. 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
June 30,
 
Six Months Ended
June 30,
(in millions)
 
2016
 
2015
 
2016
 
2015
Net sales
 
$
—

 
$
407.7

 
$
219.6

 
$
753.1

 
 
 
 
 
 
 
 
 
Cost of sales
 
—

 
280.1

 
141.5

 
518.4

Engineering, selling and administrative expenses
 
—

 
65.2

 
48.3

 
141.1

Amortization expense
 
—

 
7.9

 
5.2

 
15.7

Restructuring expense
 
—

 
(0.5
)
 
0.3

 
0.4

Separation expense
 
0.7

 
8.3

 
27.7

 
9.8

Other
 
—

 
0.5

 
—

 
0.5

Total operating costs and expenses
 
0.7

 
361.5

 
223.0

 
685.9

(Loss) earnings from operations
 
(0.7
)
 
46.2

 
(3.4
)
 
67.2

Other (expense) income
 
—

 
(0.2
)
 
(1.8
)
 
2.2

(Loss) earnings from discontinued operations before income taxes
 
(0.7
)
 
46.0

 
(5.2
)
 
69.4

(Benefit) provision for taxes on earnings
 
—

 
16.4

 
(1.3
)
 
24.7

(Loss) earnings from discontinued operations, net of income taxes
 
$
(0.7
)
 
$
29.6

 
$
(3.9
)
 
$
44.7

 
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 June 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.
During the three months ended June 30, 2016 and 2015, the Company recorded $0.7 million and $8.3 million, respectively, of separation costs related to the Spin-Off. During the six months ended June 30, 2016 and 2015 the Company recorded $27.7 million and $9.8 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.
The following selected financial data of various other businesses disposed of prior to 2014, consisting primarily of administrative costs, for the three and six months ended June 30, 2016 and 2015, 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. 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(in millions)
 
2016
 
2015
 
2016
 
2015
Net sales
 
$
—

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
Pretax (loss) income from discontinued operations
 
(0.1
)
 
0.1

 
(0.1
)
 
(0.1
)
Provision for taxes on income
 
—

 
0.1

 
—

 
—

Net loss from discontinued operations
 
$
(0.1
)
 
$
—

 
$
(0.1
)
 
$
(0.1
)

In 2014, the Company sold its interest in Manitowoc Dong Yue. Subsequent to the sale, Manitowoc Dong Yue had approximately $17.3 million of third party debt outstanding under a loan agreement entered into during the first quarter of 2014 that the Company has fully guaranteed. The loan is fully secured by Manitowoc Dong Yue’s fixed assets as well as finished goods inventory. Manitowoc Dong Yue is repaying the loan over a four-year period, with the last payment due on December 31, 2017.