3. Discontinued Operations

On March 4, 2016, Manitowoc completed the Spin-Off of MFS. The financial results of MFS are presented as income (loss) from discontinued operations, net of income taxes in the Consolidated Statements of Operations. Concurrent with the Spin-Off, the Company received a $1,361.7 million dividend from MFS. The following table presents the financial results of MFS through the date of the Spin-Off for the indicated periods and do not include corporate overhead allocations:

Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS

(in millions)	2016			2015
Net sales	$	219.6		$	1,570.1
Cost of sales		141.5			1,065.6
Engineering, selling and administrative expenses		48.3			271.3
Amortization of intangible assets		5.2			31.4
Asset impairment expense		—			9.0
Restructuring expense		0.3			4.6
Separation expense		27.7			39.4
Other		—			0.9
Total operating costs and expenses		223.0			1,422.2
Operating (loss) income		(3.4	)		147.9
Other (expense) income		(2.2	)		23.4
(Loss) income from discontinued operations before income taxes		(5.6	)		171.3
Provision for taxes on income		0.6			35.9
(Loss) income from discontinued operations, net of income taxes (1)	$	(6.2	)	$	135.4

(1)

For the year ended December 31, 2016 and 2015, the Company recorded net (losses) income of $(1.0) million and $0.0 million, respectively, from various other businesses disposed of prior to 2014. This is presented for informational purposes only and does not necessarily reflect what the results of operations would have been had the businesses operated as stand-alone entities.

No assets or liabilities of MFS are reflected on the Company's Consolidated Balance Sheet as of December 31, 2017 and 2016.

Manitowoc and MFS entered into several 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 are providing various services to each other on an interim, transitional basis. Services being provided by Manitowoc include, among others, finance, information technology and certain other administrative services. The services generally commenced on March 4, 2016, and all have terminated. 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 twelve months ended December 31, 2017 related to the Spin-Off were not material. During the twelve months ended December 31, 2016 and 2015, the Company recorded $27.7 million and $39.4 million, respectively, of separation costs related to the Spin-Off. Separation costs consisted primarily of professional and consulting fees and were included in the results of discontinued operations.