Business Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

The company identifies its segments using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the company’s reportable segments. 

The Crane business is a global provider of engineered lift solutions which designs, manufactures and markets a comprehensive line of lattice-boom crawler cranes, mobile telescopic cranes, tower cranes and boom trucks.  The Crane products are used in a wide variety of applications, including energy, petrochemical and industrial projects, infrastructure development such as road, bridge and airport construction, and commercial and high-rise residential construction. Our crane-related product support services are principally marketed under the Manitowoc Crane Care brand name and include maintenance and repair services and parts supply.

The Foodservice equipment business designs, manufactures and sells refrigeration, ice-making, cooking, holding, food-preparation, and beverage-dispensing equipment.  Our suite of products is used by commercial and institutional foodservice operators such as full service restaurants, QSR chains, hotels, industrial caterers, supermarkets, convenience stores, hospitals, schools and other institutions.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that certain expenses are not allocated to the segments.  These unallocated expenses are corporate overhead, stock-based compensation expense, amortization expense of intangible assets with definite lives, goodwill impairment, intangible asset impairment, asset impairment expense, restructuring expense, and other non-operating expenses.  The company evaluates segment performance based upon profit and loss before the aforementioned expenses.  Financial information relating to the company’s reportable segments for the years ended December 31, 2015, 2014 and 2013 is as follows: 

(in millions)	2015			2014			2013
Net sales from continuing operations:
Crane	$	1,865.7		$	2,305.2		$	2,506.3
Foodservice	1,570.1			1,581.3			1,541.8
Total	$	3,435.8		$	3,886.5		$	4,048.1
Operating earnings (loss) from continuing operations:
Crane	$	64.3		$	163.9		$	218.8
Foodservice	239.7			234.0			250.3
Corporate	(58.4		)	(53.4		)	(64.9		)
Asset impairment expense	(24.4		)	(1.1		)	—
Amortization expense	(34.4		)	(35.1		)	(35.3		)
Restructuring expense	(14.0		)	(9.0		)	(4.8		)
Separation expense	(39.4		)	—			—
Other (expense) income	(0.9		)	(0.5		)	0.3
Operating earnings from continuing operations	$	132.5		$	298.8		$	364.4
Other income (expense):
Interest expense	$	(97.0	)	$	(94.0	)	$	(128.4	)
Amortization of deferred financing fees	(4.2		)	(4.4		)	(7.0		)
Loss on debt extinguishment	(0.2		)	(25.5		)	(3.0		)
Other income (expense) - net	25.5			(5.5		)	(0.8		)
Earnings from continuing operations before taxes on earnings	$	56.6		$	169.4		$	225.2
Capital expenditures:
Crane	$	54.1		$	57.3		$	69.3
Foodservice	13.2			25.3			33.6
Corporate	0.8			2.2			7.8
Total	$	68.1		$	84.8		$	110.7
Total depreciation:
Crane	$	49.4		$	45.7		$	46.9
Foodservice	19.6			21.2			20.1
Corporate	0.9			1.5			1.5
Total	$	69.9		$	68.4		$	68.5
Total assets:
Crane	$	1,606.3		$	1,742.3		$	1,900.4
Foodservice	1,792.7			1,902.0			1,904.3
Corporate	49.9			172.3			171.9
Total	$	3,448.9		$	3,816.6		$	3,976.6

Net sales are attributed to geographic regions based on location of customer. Net sales from continuing operations and long-lived asset information by geographic area as of and for the years ended December 31 are as follows:

	Net Sales						Long-Lived Assets
(in millions)	2015		2014		2013		2015		2014
United States	$	1,851.2	$	1,977.4	$	1,978.0	$	1,768.0	$	1,880.8
Other North America	179.1		238.3		292.1		12.4		12.4
Europe	626.5		821.2		937.6		423.6		478.9
Asia	324.5		377.6		364.5		172.9		189.7
Middle East	221.1		223.2		174.2		1.5		1.5
Central and South America	75.9		106.9		166.9		11.8		30.0
Africa	82.4		56.7		30.0		—		—
South Pacific and Caribbean	8.6		13.3		12.6		3.8		4.0
Australia	66.5		71.9		92.2		2.9		3.0
Total	$	3,435.8	$	3,886.5	$	4,048.1	$	2,396.9	$	2,600.3

Net sales from continuing operations and long-lived asset information for Europe primarily relate to France, Germany and the United Kingdom.