16. Employee Benefit Plans

The Company provides certain pension, health care and death benefits to eligible retirees and their dependents. The funding mechanism for such benefits varies based on the country where the retiree resides and receives benefits. Eligibility for pension coverage is based on retirement qualifications. Healthcare benefits may be subject to deductibles, co-payments and other limitations. The Company reserves the right to modify benefits unless a government agency in a certain country prohibits it from doing so.

As part of the Spin-Off, and in accordance with the employee matters agreement referred to in Note 2, “Discontinued Operations,” certain combined plans were split between MTW and MFS. Accordingly, the Company transferred to MFS pension obligations associated with active, retired and other former employees of MFS for those impacted MFS-related defined benefit pension plans. The allocation of plan assets was determined in accordance with applicable Employee Retirement Income Security Act of 1974, Internal Revenue Service and other jurisdictional requirements.

Effective July 1, 2017, The Manitowoc Company, Inc. Post-65 Retiree Health Plan (“the Plan”) was amended. Eligible retirees and their spouses were provided access to a Retiree Health Exchange where they may purchase Medicare Supplement Plans, including Medicare Advantage and Medigap plan prescription drug coverage. The enrollment and payment for this coverage is facilitated by an outside third-party, and these plans have no affiliation with the Company. To assist retirees with premium and out-of-pocket expenses they incur, the Company funds a Health Reimbursement Account (“HRA”) for each enrolled retiree. The value of the HRA is based on the plan type and premium cost for each specific retiree before the Plan was amended.

The components of periodic benefit costs for the three and nine months ended September 30, 2017 and September 30, 2016 are as follows:

	Three Months Ended September 30, 2017									Nine Months Ended September 30, 2017
							Postretirement									Postretirement
	U.S.			Non-U.S.			Health and			U.S.			Non-U.S.			Health and
	Pension			Pension			Other			Pension			Pension			Other
($ in millions)	Plans			Plans			Plans			Plans			Plans			Plans
Service cost - benefits earned during the period	$	—		$	0.4		$	0.1		$	—		$	1.3		$	0.2
Interest cost of projected benefit obligations		1.3			0.6			0.2			4.0			1.6			0.7
Expected return on plan assets		(1.2	)		(0.4	)		—			(3.7	)		(1.1	)		—
Amortization of prior service cost		—			—			(0.3	)		—			—			(1.0	)
Amortization of actuarial net loss		0.8			0.4			0.1			2.4			1.2			0.3
Net periodic benefit costs	$	0.9		$	1.0		$	0.1		$	2.7		$	3.0		$	0.2

	Three Months Ended September 30, 2016								Nine Months Ended September 30, 2016
							Postretirement								Postretirement
	U.S.			Non-U.S.			Health and		U.S.			Non-U.S.			Health and
	Pension			Pension			Other		Pension			Pension			Other
($ in millions)	Plans			Plans			Plans		Plans			Plans			Plans
Service cost - benefits earned during the period	$	—		$	0.5		$	0.1	$	—		$	1.4		$	0.2
Interest cost of projected benefit obligations		1.7			0.6			0.4		5.6			2.8			1.3
Expected return on plan assets		(1.4	)		(0.5	)		—		(4.6	)		(2.2	)		—
Amortization of actuarial net loss		0.9			0.2			—		3.0			0.9			—
Net periodic benefit costs		1.2			0.8			0.5		4.0			2.9			1.5
Net periodic benefit costs associated with MFS		—			—			—		0.4			0.4			0.1
Net periodic benefit costs included in continuing operations	$	1.2		$	0.8		$	0.5	$	3.6		$	2.5		$	1.4