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Discontinued Operations
 3 Months Ended
Mar. 31, 2017
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 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 period and does not include corporate overhead allocations:
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS
 
 
(in millions)
 
Three Months Ended
March 31, 2016
Net sales
 
$
219.6

 
 
 
Cost of sales
 
141.5

Engineering, selling and administrative expenses
 
48.3

Amortization expense
 
5.2

Restructuring expense
 
0.3

Separation expense
 
26.9

Total operating costs and expenses
 
222.2

Loss from operations
 
(2.6
)
Other expense
 
(1.9
)
Loss from discontinued operations before income taxes
 
(4.5
)
Benefit for taxes on earnings
 
(1.3
)
Loss from discontinued operations, net of income taxes
 
$
(3.2
)
 
For the three months ended March 31, 2017, net losses recorded by the Company related to discontinued operations of MFS were negligible. Additionally, for the three months ended March 31, 2017 and 2016, net losses incurred by the Company from various other businesses disposed in prior periods were negligible.
Manitowoc and MFS entered into agreements in connection with the Spin-Off, 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 provided various services to each other on an interim, transitional basis. Services provided by Manitowoc included, among others, finance, information technology and certain other administrative services. The services generally commenced on March 4, 2016 and terminated within 12 months of that date. Billings by Manitowoc under the TSA were recorded as a reduction of the costs to provide the respective service in the applicable expense category.
Separation costs recorded by the Company during the three months ended March 31, 2017 related to the Spin-Off were negligible. During the three months ended March 31, 2016, the Company recorded $26.9 million 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.