10-Q 1 mtw-20220331.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

img163503900_0.jpg 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-11978

 

The Manitowoc Company, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Wisconsin

 

39-0448110

(State or other jurisdiction

 

(I.R.S. Employer

of incorporation or organization)

 

Identification Number)

 

11270 West Park Place

Suite 1000

 

 

Milwaukee, Wisconsin

 

53224

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (414) 760-4600

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $.01 Par Value

 

MTW

 

New York Stock Exchange

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

 

As of March 31, 2022, the registrant had 35,319,205 shares of common stock, $.01 par value per share, outstanding.


 


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Statements of Operations

For the three months ended March 31, 2022 and 2021

(Unaudited)

($ in millions)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Net sales

 

$

459.0

 

 

$

354.3

 

Cost of sales

 

 

374.0

 

 

 

285.9

 

Gross profit

 

 

85.0

 

 

 

68.4

 

Operating costs and expenses:

 

 

 

 

 

 

Engineering, selling and administrative expenses

 

 

66.5

 

 

 

57.7

 

Amortization of intangible assets

 

 

0.8

 

 

 

0.1

 

Restructuring (income) expense

 

 

0.1

 

 

 

(0.1

)

Total operating costs and expenses

 

 

67.4

 

 

 

57.7

 

Operating income

 

 

17.6

 

 

 

10.7

 

Other expense:

 

 

 

 

 

 

Interest expense

 

 

(7.4

)

 

 

(7.1

)

Amortization of deferred financing fees

 

 

(0.4

)

 

 

(0.4

)

Other expense - net

 

 

(0.2

)

 

 

(2.1

)

Total other expense

 

 

(8.0

)

 

 

(9.6

)

Income before income taxes

 

 

9.6

 

 

 

1.1

 

Provision for income taxes

 

 

6.5

 

 

 

4.2

 

Net income (loss)

 

$

3.1

 

 

$

(3.1

)

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

Basic net income (loss) per common share

 

$

0.09

 

 

$

(0.09

)

 

 

 

 

 

 

 

Diluted net income (loss) per common share

 

$

0.09

 

 

$

(0.09

)

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

35,131,889

 

 

 

34,809,725

 

Weighted average shares outstanding - diluted

 

 

35,565,935

 

 

 

34,809,725

 

 

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

 

2


 

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Statements of Comprehensive Loss

For the three months ended March 31, 2022 and 2021

(Unaudited)

($ in millions)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Net income (loss)

 

$

3.1

 

 

$

(3.1

)

Other comprehensive loss, net of income tax:

 

 

 

 

 

 

Unrealized losses on derivatives, net of income tax
   provision of $
0.0 and $0.0, respectively

 

 

(0.2

)

 

 

 

Employee pension and postretirement benefit expense, net of
   income tax provision of $
0.0 and $0.0, respectively

 

 

(0.6

)

 

 

(0.6

)

Foreign currency translation adjustments, net of income tax benefit
   of $
0.0 and $3.2, respectively

 

 

(5.5

)

 

 

(10.0

)

Total other comprehensive loss, net of income tax

 

 

(6.3

)

 

 

(10.6

)

Comprehensive loss

 

$

(3.2

)

 

$

(13.7

)

 

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

3


 

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Balance Sheets

As of March 31, 2022 and December 31, 2021

(Unaudited)

($ in millions, except share amounts)

 

 

 

March 31,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

51.6

 

 

$

75.4

 

Accounts receivable, less allowances of $7.3 and $7.3, respectively

 

 

242.2

 

 

 

236.1

 

Inventories — net

 

 

643.1

 

 

 

576.8

 

Notes receivable — net

 

 

14.9

 

 

 

16.7

 

Other current assets

 

 

35.5

 

 

 

36.8

 

Total current assets

 

 

987.3

 

 

 

941.8

 

Property, plant and equipment — net

 

 

340.8

 

 

 

358.8

 

Operating lease right-of-use assets

 

 

37.5

 

 

 

40.6

 

Goodwill

 

 

250.6

 

 

 

249.7

 

Other intangible assets — net

 

 

136.9

 

 

 

139.6

 

Other non-current assets

 

 

41.5

 

 

 

44.7

 

Total assets

 

$

1,794.6

 

 

$

1,775.2

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

462.8

 

 

$

413.4

 

Short-term borrowings and current portion of long-term debt

 

 

9.1

 

 

 

7.3

 

Product warranties

 

 

49.4

 

 

 

49.0

 

Customer advances

 

 

25.5

 

 

 

28.7

 

Other liabilities

 

 

21.4

 

 

 

22.6

 

Total current liabilities

 

 

568.2

 

 

 

521.0

 

Non-Current Liabilities:

 

 

 

 

 

 

Long-term debt

 

 

380.1

 

 

 

399.9

 

Operating lease liabilities

 

 

26.7

 

 

 

29.2

 

Deferred income taxes

 

 

5.1

 

 

 

6.5

 

Pension obligations

 

 

68.9

 

 

 

69.4

 

Postretirement health and other benefit obligations

 

 

11.8

 

 

 

12.1

 

Long-term deferred revenue

 

 

21.3

 

 

 

22.9

 

Other non-current liabilities

 

 

51.0

 

 

 

51.8

 

Total non-current liabilities

 

 

564.9

 

 

 

591.8

 

Commitments and contingencies (Note 18)

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

Preferred stock (3,500,000 shares authorized of $.01 par value;
   
none outstanding)

 

 

 

 

 

 

Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 35,319,205 
   and
35,056,252 shares outstanding, respectively)

 

 

0.4

 

 

 

0.4

 

Additional paid-in capital

 

 

601.7

 

 

 

602.4

 

Accumulated other comprehensive loss

 

 

(108.7

)

 

 

(102.4

)

Retained earnings

 

 

231.0

 

 

 

227.9

 

Treasury stock, at cost (5,474,778 and 5,737,731 shares, respectively)

 

 

(62.9

)

 

 

(65.9

)

Total stockholders' equity

 

 

661.5

 

 

 

662.4

 

Total liabilities and stockholders' equity

 

$

1,794.6

 

 

$

1,775.2

 

 

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

4


 

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Statements of Cash Flows

For the three months ended March 31, 2022 and 2021

(Unaudited)

($ in millions)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income (loss)

 

$

3.1

 

 

$

(3.1

)

Adjustments to reconcile net income (loss) to cash provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

16.1

 

 

 

10.0

 

Amortization of intangible assets

 

 

0.8

 

 

 

0.1

 

Amortization of deferred financing fees

 

 

0.4

 

 

 

0.4

 

Deferred income taxes

 

 

 

 

 

0.9

 

Gain on sale of property, plant and equipment

 

 

 

 

 

(0.1

)

Net unrealized foreign currency transaction losses

 

 

1.4

 

 

 

0.3

 

Stock-based compensation expense

 

 

3.1

 

 

 

2.5

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

(7.7

)

 

 

23.4

 

Inventories

 

 

(69.4

)

 

 

(59.5

)

Notes receivable

 

 

3.0

 

 

 

2.3

 

Other assets

 

 

0.4

 

 

 

5.4

 

Accounts payable

 

 

54.6

 

 

 

53.4

 

Accrued expenses and other liabilities

 

 

(0.2

)

 

 

4.8

 

Net cash provided by operating activities

 

 

5.6

 

 

 

40.8

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Capital expenditures

 

 

(8.7

)

 

 

(8.0

)

Net cash used for investing activities

 

 

(8.7

)

 

 

(8.0

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Payments on revolving credit facility

 

 

(20.0

)

 

 

 

Other debt - net

 

 

(0.8

)

 

 

(0.8

)

Exercises of stock options

 

 

0.1

 

 

 

0.8

 

Net cash used for financing activities

 

 

(20.7

)

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

 

 

(3.0

)

Net increase (decrease) in cash and cash equivalents

 

 

(23.8

)

 

 

29.8

 

Cash and cash equivalents at beginning of period

 

 

75.4

 

 

 

128.7

 

Cash and cash equivalents at end of period

 

$

51.6

 

 

$

158.5

 

 

The accompanying notes are an integral part to these Condensed Consolidated Financial Statements.

5


 

THE MANITOWOC COMPANY, INC.

Condensed Consolidated Statements of Equity

For the three months ended March 31, 2022 and 2021

(Unaudited)

($ in millions)

 

 

 

March 31,
2022

 

 

March 31,
2021

 

Common Stock - Par Value

 

 

 

 

 

 

Balance at beginning of period

 

$

0.4

 

 

$

0.4

 

Balance at end of period

 

$

0.4

 

 

$

0.4

 

Additional Paid-in Capital

 

 

 

 

 

 

Balance at beginning of period

 

$

602.4

 

 

$

595.1

 

Stock options exercised and issuance of other stock awards

 

 

(3.8

)

 

 

(1.2

)

Stock-based compensation

 

 

3.1

 

 

 

2.5

 

Balance at end of period

 

$

601.7

 

 

$

596.4

 

Accumulated Other Comprehensive Loss

 

 

 

 

 

 

Balance at beginning of period

 

$

(102.4

)

 

$

(97.5

)

Other comprehensive loss

 

 

(6.3

)

 

 

(10.6

)

Balance at end of period

 

$

(108.7

)

 

$

(108.1

)

Retained Earnings

 

 

 

 

 

 

Balance at beginning of period

 

$

227.9

 

 

$

216.9

 

Net income (loss)

 

 

3.1

 

 

 

(3.1

)

Balance at end of period

 

$

231.0

 

 

$

213.8

 

Treasury Stock

 

 

 

 

 

 

Balance at beginning of period

 

$

(65.9

)

 

$

(71.4

)

Stock options exercised and issuance of other stock awards

 

 

3.0

 

 

 

1.9

 

Balance at end of period

 

$

(62.9

)

 

$

(69.5

)

Total equity

 

$

661.5

 

 

$

633.0

 

 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

 

 

6


 

THE MANITOWOC COMPANY, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021

1. Accounting Policies and Basis of Presentation

The Manitowoc Company, Inc. (“Manitowoc” and the “Company”) was founded in 1902 and has over a 119-year tradition of providing high-quality, customer-focused products and support services to its markets. Manitowoc is one of the world's leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, and supports comprehensive product lines of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under the Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain and Shuttlelift brand names. The Company serves a wide variety of customers, including dealers, rental companies, contractors, and government entities, across the petrochemical, industrial, commercial construction, power and utilities, infrastructure and residential construction end markets. Additionally, the Company leverages its installed base of approximately 155,000 cranes to provide aftermarket parts and services to enable its customers to manage their fleets more effectively and improve their return on investment. Due to the ongoing and predictable maintenance needed by cranes, as well as the high cost of crane downtime, Manitowoc’s aftermarket support operations provide the Company with a consistent stream of recurring revenue. The Company continues to expand its tower crane rental fleet in Europe and Africa ("EURAF") to directly service its customers in the region.

The Company has three reportable segments, the Americas segment, the EURAF segment and Middle East and Asia Pacific (“MEAP”) segment. The segments were identified using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance. Refer to Note 17, “Segments” for additional information.

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments necessary for a fair statement of operations, comprehensive income (loss) and equity for the three months ended March 31, 2022 and 2021, the cash flows for the same three-month periods and the balance sheet as of March 31, 2022 and December 31, 2021, 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, 2021. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), have been condensed or omitted pursuant to Securities and Exchange Commission 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.

All amounts, except share and per share amounts, are in millions throughout the tables in these notes unless otherwise indicated.

2. Business Combinations

Acquisition of Aspen Equipment Company

On September 1, 2021, the Company completed the acquisition of substantially all of the assets of Aspen Equipment Company ("Aspen"), a diversified crane dealer and a leading final stage purpose built work truck upfitter, for a purchase price of approximately $50.2 million. The acquisition of Aspen was funded from existing cash resources and expands Manitowoc's direct-to-customer footprint in Iowa, Nebraska and Minnesota with new sales, used sales, parts, service and rentals to a variety of end markets.

Included in the purchase price was $12.9 million of net working capital, $5.6 million of property, plant and equipment, $19.3 million of rental fleet, $0.4 million of other assets, $6.6 million of goodwill and $5.4 million of intangible assets. Refer to Note 9, "Goodwill and Other Intangible Assets," for additional information on the class of intangibles acquired and goodwill recorded.

Acquisition of the H&E Crane Business

On October 1, 2021, the Company completed the acquisition of substantially all of the assets and certain liabilities of the crane business of H&E Equipment Services, Inc. (“H&E”) for a transaction price of approximately $139.1 million which is inclusive of the purchase price of $130.0 million, working capital and other adjustments of $5.9 million and settlement of outstanding balances between the Company and the acquired company of $3.2 million. The purchase price is subject to customary adjustments for, among other things, finalization of net working capital and other transaction adjustments. The acquisition was funded from existing cash resources, including the use of the ABL revolver of which $80.0 million was outstanding as of

7


 

March 31, 2022. The acquired H&E crane business operates with ten full-service branch locations under the Company's wholly owned subsidiary, MGX Equipment Services, LLC ("MGX"), and expands Manitowoc’s ability to provide new sales, used sales, aftermarket parts, service and crane financing options to a variety of end market customers.

 

Net working capital

 

$

50.0

 

Property, plant and equipment

 

 

13.1

 

Rental fleet

 

 

48.2

 

Goodwill

 

 

8.9

 

Noncompetition agreement intangible

 

 

3.8

 

Customer relationships intangible

 

 

15.1

 

Total fair value consideration

 

$

139.1

 

The amount of revenue on a standalone basis generated by the acquisition for the three months ended March 31, 2022 was $42.9 million, $21.6 million net of previously recorded third-party sales.

3. Net Sales

The Company defers revenue when cash payments are received in advance of satisfying the performance obligation. The amounts are recorded as customer advances in the Condensed Consolidated Balance Sheets. The table below shows the change in the customer advances balance for the three months ended March 31, 2022 and 2021.

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Balance at beginning of period

 

$

28.7

 

 

$

25.5

 

Cash received in advance of satisfying
   performance obligations

 

 

15.5

 

 

 

30.5

 

Revenue recognized

 

 

(17.9

)

 

 

(34.1

)

Currency translation

 

 

(0.8

)

 

 

(0.3

)

Balance at end of period

 

$

25.5

 

 

$

21.6

 

Disaggregation of the Company’s revenue sources are disclosed in Note 17, “Segments.”

4. Fair Value of Financial Instruments

The following table sets forth the Company's financial assets and liabilities related to foreign currency exchange contracts ("FX Forward Contracts") that were accounted for at fair value as of March 31, 2022 and December 31, 2021.

 

 

 

Fair Value as of March 31, 2022

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Recognized Location

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FX Forward Contracts

 

$

 

 

$

0.7

 

 

$

 

 

$

0.7

 

 

 Other current assets

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FX Forward Contracts

 

$

 

 

$

0.9

 

 

$

 

 

$

0.9

 

 

 Accounts payable and
   accrued expenses

 

 

 

Fair Value as of December 31, 2021

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Recognized Location

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FX Forward Contracts

 

$

 

 

$

0.3

 

 

$

 

 

$

0.3

 

 

 Accounts payable and
   accrued expenses

 

The fair value of the senior secured second lien notes due on April 1, 2026, with an annual coupon rate of 9.000% (the “2026 Notes”), was approximately $313.2 million as of March 31, 2022. See Note 11, “Debt,” for a description of the 2026 Notes and the related carrying value.

The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company estimates the fair value of its 2026 Notes based on quoted market prices of the instruments; because these markets are typically

8


 

actively traded, the liabilities are classified as Level 1 within the valuation hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and short-term variable debt, including any amounts outstanding under our revolving credit facility, approximate fair value, without being discounted as of March 31, 2022 due to the short-term nature of these instruments.

FX Forward Contracts are valued through an independent valuation source which uses an industry standard data provider, with resulting valuations periodically validated through third-party or counterparty quotes. As such, these derivative instruments are classified within Level 2. See Note 5, “Derivative Financial Instruments” for additional information.

5. Derivative Financial Instruments

The Company’s risk management objective is to ensure that business exposures to risks are minimized using the most effective and efficient methods to eliminate, reduce, or transfer such exposures. Operating decisions consider these associated risks and, whenever possible, transactions are structured to avoid or mitigate these risks.

From time to time, the Company enters into FX Forward Contracts to manage the exposure on forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities in currencies other than the functional currency of certain subsidiaries. Certain of these FX Forward Contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss) ("AOCI"). These changes in fair value are reclassified into earnings as a component of cost of sales, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of other income (expense) – net in the period in which the transaction is no longer considered probable of occurring. No amounts were recorded related to forecasted transactions no longer being probable during the three months ended March 31, 2022 and 2021.

The Company had FX Forward Contracts with aggregate notional amounts of $101.5 million and $11.3 million in U.S. dollar equivalent as of March 31, 2022 and December 31, 2021, respectively. The aggregate notional amount outstanding as of March 31, 2022 is scheduled to mature within one year. The FX Forward Contracts purchased are denominated in various foreign currencies. As of March 31, 2022 and December 31, 2021 the net fair value of these contracts was a short term liability of $0.2 million and $0.3 million, respectively. Net unrealized losses, net of income tax, recorded in AOCI were $0.2 million and zero as of March 31, 2022 and December 31, 2021, respectively.

The net gains (losses) recorded in the Condensed Consolidated Statement of Operations for FX Forward Contracts for the three months ended March 31, 2022 and 2021 are summarized as follows:

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

Recognized Location

 

2022

 

 

2021

 

Designated

 

Cost of sales

 

$

(0.1

)

 

$

 

Non-Designated

 

Other income (expense) - net

 

$

0.7

 

 

$

(0.2

)

 

6. Inventories

The components of inventories as of March 31, 2022 and December 31, 2021 are summarized as follows:

 

 

 

March 31,
2022

 

 

December 31,
2021

 

Raw materials

 

$

147.5

 

 

$

157.4

 

Work-in-process

 

 

166.4

 

 

 

140.4

 

Finished goods

 

 

329.2

 

 

 

279.0

 

Total Inventories — net

 

$

643.1

 

 

$

576.8

 

 

7. Notes Receivable

The Company has notes receivable balances that are classified as current or long-term based on the timing of amounts due. Long-term notes receivable are included within other non-current assets on the Condensed Consolidated Balance Sheets. During the period ended March 31, 2022, the Company recorded income of $4.8 million in engineering, selling and administrative expenses in the Condensed Consolidated Statement of Operations to recognize the partial recovery of the previously written-off note with Manitowoc Dong Yue. As of March 31, 2022, the Company had current and long-term notes

9


 

receivable in the amount of $14.9 million and $4.4 million, respectively. As of December 31, 2021, the Company had current and long-term notes receivable in the amount of $16.7 million and $5.2 million, respectively.

8. Property, Plant and Equipment

The components of property, plant and equipment as of March 31, 2022 and December 31, 2021 are summarized as follows:

 

 

 

March 31,
2022

 

 

December 31,
2021

 

Land

 

$

19.1

 

 

$

19.4

 

Building and improvements

 

 

202.0

 

 

 

203.4

 

Machinery, equipment and tooling

 

 

299.0

 

 

 

298.9

 

Furniture and fixtures

 

 

14.3

 

 

 

14.5

 

Computer hardware and software

 

 

127.6

 

 

 

125.6

 

Rental cranes

 

 

140.5

 

 

 

144.2

 

Construction in progress

 

 

9.9

 

 

 

15.1

 

Total cost

 

 

812.4

 

 

 

821.1

 

Less: accumulated depreciation

 

 

(471.6

)

 

 

(462.3

)

Property, plant and equipment-net

 

$

340.8

 

 

$

358.8

 

 

Property, plant and equipment are depreciated over the asset’s estimated useful life using the straight-line depreciation method for financial reporting and accelerated methods for income tax purposes.

Assets Held for Sale

As of March 31, 2022 and December 31, 2021, the Company had $3.3 million and $3.1 million, respectively, classified as other current assets in the Condensed Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021, assets held for sale primarily relate to a manufacturing building and land in Fanzeres, Portugal.

Assets Impairment

During the year ended December 31, 2021, the Company recorded an asset impairment of $1.9 million to write-down the value of one of the Company's Brazil entities to its expected sale price. There were no asset impairments recorded during the three months ended March 31, 2022.

9. Goodwill and Other Intangible Assets

The Company performs its annual goodwill and indefinite lived assets impairment testing during the fourth quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company will continue to monitor changes in circumstances and test more frequently if those changes indicate that assets might be impaired.

The changes in the carrying amount of goodwill as of March 31, 2022 and December 31, 2021 are summarized as follows:

 

 

 

Americas - Manufacturing

 

 

Americas - Distribution

 

 

MEAP

 

 

Consolidated

 

Balance as of January 1, 2021

 

$

166.5

 

 

$

 

 

$

68.6

 

 

$

235.1

 

Foreign currency impact

 

 

 

 

 

 

 

 

(0.5

)

 

 

(0.5

)

Acquisitions

 

 

 

 

 

15.1

 

 

 

 

 

 

15.1

 

Balance as of December 31, 2021