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Accounting Policies and Basis of Presentation | 3 Months Ended
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Mar. 31, 2017
Accounting Policies [Abstract] |
Accounting Policies and Basis of Presentation | Accounting Policies and Basis of Presentation The Manitowoc Company, Inc. (“Manitowoc,” “MTW” and the “Company”) is a leading provider of engineered lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes and boom trucks. The Company has one reportable segment, the Crane business. The segment was identified using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments necessary for a fair statement of the results of operations and comprehensive income for the three months ended March 31, 2017 and 2016, the cash flows for the same three-month periods and the financial position at March 31, 2017 and December 31, 2016, and except as otherwise discussed, such adjustments consist of only those of a normal recurring nature. The interim results are not necessarily indicative of results for a full year and do not contain information included in the Company’s annual consolidated financial statements and notes for the year ended December 31, 2016. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to SEC rules and regulations dealing with interim financial statements. However, the Company believes that the disclosures made in the Condensed Consolidated Financial Statements included herein are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest annual report on Form 10-K. During the first quarter of fiscal 2016, MTW's Board of Directors approved the tax-free spin-off of the Company’s foodservice business (“MFS”) into an independent, public company (the “Spin-Off”). To consummate the Spin-Off, the Board declared a pro rata dividend of MFS common stock to MTW’s stockholders of record as of the close of business on February 22, 2016 (the “Record Date”), payable on March 4, 2016. Each MTW stockholder received one share of MFS common stock for every share of MTW common stock held as of the close of business on the Record Date. In these Condensed Consolidated Financial Statements, unless otherwise indicated, references to Manitowoc, MTW and the Company refer to The Manitowoc Company, Inc. and its consolidated subsidiaries after giving effect to the Spin-Off, or in the case of information as of dates or for periods prior to the Spin-Off, the consolidated entities of the Crane business and certain other assets and liabilities that were historically held at the MTW corporate level but were specifically identifiable and attributable to the Crane business. As a result of the Spin-Off, the Condensed Consolidated Financial Statements and related financial information reflect MFS operations, assets and liabilities and cash flows as discontinued operations for all periods presented. Refer to Note 2, “Discontinued Operations,” for additional information regarding the Spin-Off. All dollar amounts, except share and per share amounts, are in millions of dollars throughout the tables included in these notes, unless otherwise indicated. During the second quarter of 2016, the Company identified an adjustment to the previously issued financial statements for the three months ended March 31, 2016. The adjustment related to accumulated other comprehensive loss (“AOCL”), whereby the Company had understated loss on debt extinguishment by $4.3 million, overstated income tax expense by $0.8 million and understated loss from continuing operations by $3.5 million in the first quarter of 2016. The adjustment also resulted in an overstatement of AOCL and understatement of retained earnings by $2.6 million as of March 31, 2016. In evaluating whether the Company’s previously issued consolidated financial statements were materially misstated, the Company considered the guidance in Accounting Standards Codification (“ASC”) Topic 250, “Accounting Changes and Error Corrections” and ASC Topic 250-10-S99-1, “Assessing Materiality.” The Company determined that these errors were not material to the Company's prior interim period consolidated financial statements and therefore, amending the previously filed report was not required. However, the Company determined that the impact of the corrections would be too significant to record within the second quarter of 2016. As such, the revision for the correction is reflected in the financial information for the first quarter of 2016. During the fourth quarter of 2016, the Company identified an adjustment to the previously issued financial statements for the three months ended March 31, 2016, related to a non-cash reclassification between continuing and discontinued operations within the operating section of the Statement of Cash Flows for the three months ended March 31, 2016, whereby the change in accrued expenses and other liabilities and net cash used for operating activities of continuing operations was understated by $16.2 million, and the net cash used for operating activities of discontinued operating activities was overstated by $16.2 million. In evaluating whether the Company’s previously issued consolidated financial statements were materially misstated, the Company considered the guidance in ASC Topic 250 and ASC Topic 250-10-S99-1. The Company determined that these errors were not material to the Company's prior interim period consolidated financial statements, and therefore, amending the previously filed reports was not required. The revision for the correction is reflected in the financial information for the first quarter of 2016. In the fourth quarter of 2016, the Company changed its method of inventory costing for certain inventory to the FIFO method from the LIFO method. The Company applied this change in method of inventory costing by retrospectively adjusting the prior period financial statements. As a result of the retrospective adjustment of the change in accounting principle, certain amounts in the Company's Condensed Consolidated Financial Statements for the three months ended March 31, 2016 were adjusted. A summary of the adjustments on the impacted financial statement line items in the Condensed Consolidated Statements of Operations as revised and as previously presented in the March 31, 2016 Form 10-Q is as follows:
| Three Months Ended March 31, 2016
|  | As previously presented |  | Revisions |  | Impact of change to FIFO |  | As revised
Cost of sales |  | $ | 345.5 |  |  | $ | — |  |  | $ | 2.2 |  |  | $ | 347.7 |
Operating (loss) income |  | 3.0 |  |  | — |  |  | (2.2 | ) |  | 0.8 |
Loss on debt extinguishment |  | (72.0 | ) |  | (4.3 | ) |  | — |  |  | (76.3 | )
Loss from continuing operations before taxes on income |  | (78.5 | ) |  | (4.3 | ) |  | (2.2 | ) |  | (85.0 | )
Provision (benefit) for taxes on income |  | 122.3 |  |  | (0.8 | ) |  | (13.8 | ) |  | 107.7 |
Loss from continuing operations |  | (200.8 | ) |  | (3.5 | ) |  | 11.6 |  |  | (192.7 | )
Discontinued operations: |  |  |  |  |  |  |  |
Loss from discontinued operations, net of income taxes |  | (3.2 | ) |  | — |  |  | — |  |  | (3.2 | )
Net loss |  | $ | (204.0 | ) |  | $ | (3.5 | ) |  | $ | 11.6 |  |  | $ | (195.9 | )
Loss per common share - basic and diluted |  |  |  |  |  |  |  |
Loss from continuing operations |  | $ | (1.47 | ) |  | $ | (0.03 | ) |  | $ | 0.09 |  |  | $ | (1.41 | )
Loss from discontinued operations |  | (0.02 | ) |  | — |  |  | — |  |  | (0.02 | )
Loss per common share |  | $ | (1.49 | ) |  | $ | (0.03 | ) |  | $ | 0.09 |  |  | $ | (1.43 | )

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