Restructuring and Asset Impairments

The Company initiated restructuring plans in 2015 to focus on its cranes business and spin-off its foodservice operations. The Spin-Off was completed in the first quarter of 2016. Refer to Notes 1 and 2 for further information regarding the Spin-Off. The Company is continuing its restructuring activities to right-size the business by balancing capacity with demand. During the three and nine months ended September 30, 2016 , the Company incurred $3.9 million and $17.1 million of restructuring expense, respectively. These costs related primarily to employee termination benefits associated with workforce reductions. The workforce reductions are part of ongoing manufacturing and operations rationalization programs, including the planned closure of the Company's manufacturing facility in Manitowoc, WI, which was announced during the third quarter. Related to the relocation of the Manitowoc, WI, manufacturing facility, in the third quarter the Company incurred approximately $3.1 million of restructuring expense related primarily to severance. The restructuring expense in the nine months ended September 30, 2016, included $2.3 million of expense related to the resignation of the former Chief Financial Officer.

The following is a roll-forward of all of the Company's restructuring activities for the nine months ended September 30, 2016 (in millions):



	Restructuring Reserve Balance as of December 31, 2015		Restructuring Expenses		Use of Reserve		Restructuring Reserve Balance as of September 30, 2016
Total	$	6.5	$	17.1	$	13.4	$	10.2

In the three and nine months ended September 30, 2016. the Company recorded $96.9 million in asset impairment expense. This included a $13.8 million write-down to fair value related to the fixed assets of the Manitowoc, WI manufacturing facility. Further, during the quarter, the Company, in conjunction with the decision to close the manufacturing location in Manitowoc, WI, made the decision to permanently stop any further work on implementing its SAP enterprise resource planning (“ERP”) platform, and recorded a write-off of $58.6 million related to SAP construction-in-progress and $18.6 million related to SAP and other IT assets. The remainder of the expense in the quarter was related to miscellaneous other restructuring actions.

Asset valuations are estimates and require assumptions and judgment by management. While the Company believes the estimates and assumptions are reasonable, a change in assumptions, including market conditions, could change the estimated fair value and, therefore, further impairment charges could be required.