Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

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”) and The Manitowoc Company, Inc. Deferred Compensation Plan (the "Deferred Compensation Plan") that were accounted for at fair value as of June 30, 2024 and December 31, 2023.

	Fair Value as of June 30, 2024
	Level 1		Level 2		Level 3		Total		Recognized Location
Current Assets:
Deferred Compensation Plan - Program B	$	8.8	$	—	$	—	$	8.8	Other non-current assets
Current Liabilities:
FX Forward Contracts	$	—	$	0.9	$	—	$	0.9	Accounts payable and    accrued expenses

	Fair Value as of December 31, 2023
	Level 1		Level 2		Level 3		Total		Recognized Location
Current Assets:
FX Forward Contracts	$	—	$	1.6	$	—	$	1.6	Other current assets
Deferred Compensation Plan - Program B		8.1		—		—		8.1	Other non-current assets
Total current assets at fair value	$	8.1	$	1.6	$	—	$	9.7
Current Liabilities:
FX Forward Contracts	$	—	$	0.6	$	—	$	0.6	Accounts payable and    accrued expenses

The fair value of the $300.0 million senior secured second lien notes due on April 1, 2026, with an annual coupon rate of 9.000% (the “2026 Notes”), was approximately $300.2 million as of June 30, 2024. See Note 10, “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 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 the Company's revolving credit facility, approximate fair value, without being discounted as of June 30, 2024 and December 31, 2023, 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.

The Deferred Compensation Plan utilizes a rabbi trust to hold assets intended to satisfy the Company’s corresponding future benefit obligations. The plan assets and corresponding obligations for Program B under the Deferred Compensation Plan are classified within Level 1.