MANITOWOC CO INC Fair Value Disclosure
5. Fair Value of Financial Instruments
ASC Topic 820-10 ("ASC 820") defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 classifies the inputs used to measure fair value into the following hierarchy:
Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
Inputs other than quoted prices that are observable for the asset or liability
Level 3 Unobservable inputs for the asset or liability
The following tables set 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 December 31, 2025 and 2024.
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Fair Value as of December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Recognized Location |
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Assets: |
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FX Forward Contracts |
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$ |
— |
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$ |
0.6 |
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$ |
— |
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$ |
0.6 |
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Other current assets |
Deferred Compensation Plan - Program B |
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9.5 |
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— |
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— |
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9.5 |
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Other non-current assets |
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$ |
9.5 |
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$ |
0.6 |
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$ |
— |
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$ |
10.1 |
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Current Liabilities: |
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FX Forward Contracts |
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$ |
— |
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$ |
0.5 |
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$ |
— |
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$ |
0.5 |
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Accounts payable and |
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Fair Value as of December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Recognized Location |
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Assets: |
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FX Forward Contracts |
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$ |
— |
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$ |
0.1 |
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$ |
— |
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$ |
0.1 |
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Other current assets |
Deferred Compensation Plan - Program B |
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8.8 |
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— |
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— |
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8.8 |
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Other non-current assets |
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$ |
8.8 |
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$ |
0.1 |
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$ |
— |
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$ |
8.9 |
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Current Liabilities: |
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FX Forward Contracts |
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$ |
— |
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$ |
3.4 |
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$ |
— |
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$ |
3.4 |
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Accounts payable and |
The fair value of the $300.0 million senior secured second lien notes due on October 1, 2031, with an annual coupon rate of 9.25% (the “2031 Notes”), was approximately $323.8 million as of December 31, 2025. Refer to Note 11, “Debt,” for a description of the 2031 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 2031 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 December 31, 2025 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. Refer to Note 6, “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. Refer to Note 20, "Employee Benefit Plans," for additional information on the Deferred Compensation Plan.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 13, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.