Filed Pursuant to Rule 424(b)(3) and Rule 424(c)

Registration No. 333-211876

Prospectus Supplement No. 1

Manitowoc Foodservice, Inc.

2016 Omnibus Incentive Plan

Thisprospectussupplementno.1amendsourprospectusdatedJune10,2016.Thesharesofcommonstock,$0.01parvalue(“CommonStock”),coveredbytheprospectusmaybeacquiredbycertainparticipantsintheManitowocFoodservice,Inc.2016OmnibusIncentivePlan(the“Plan”)pursuanttoawardsunderthePlan(the“awards”),includingupontheexerciseofcertainoptionstopurchaseourCommonStock.AllawardsaresubjecttothetermsofthePlanandtheapplicableawardagreement.AnyproceedsreceivedbyusfromtheexerciseofstockoptionscoveredbythePlanwillbeusedforgeneralcorporatepurposes.

Thisprospectussupplementno.1isbeingfiledtoincludetheinformationsetforthinourQuarterlyReportonForm10-QforthequarterlyperiodendedJune30,2016,whichwasfiledwiththeSecuritiesandExchangeCommissiononAugust15,2016andwhichissetforthbelow.Thisprospectussupplementno.1shouldbereadinconjunctionwiththeprospectusdatedJune10,2016.

OurCommonStockislistedontheNewYorkStockExchangeunderthesymbol“MFS.”

In reviewing this prospectus supplement, you should carefully consider the matters described under the caption “RiskFactors” beginning on page 5 of the prospectus.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved ofthese securities or determined if the related prospectus is truthful or complete. Any representation to the contrary is acriminal offense.

ProspectusSupplementNo.1,datedAugust18,2016

TableofContents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

xQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2016

or

oo 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

1-37548

Manitowoc Foodservice, Inc.(Exactnameofregistrantasspecifiedinitscharter)

Delaware 47-4625716

(Stateorotherjurisdiction (I.R.S.Employer

ofincorporation) IdentificationNumber)

2227 Welbilt Boulevard New Port Richey, FL 34655

(Addressofprincipalexecutiveoffices) (ZipCode)

(727) 375-7010

(Registrant’stelephonenumber,includingareacode)

IndicatebycheckmarkwhethertheRegistrant:(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheRegistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.YesxNoo

Indicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporatewebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).YesxNoo

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfilerorasmallerreportingcompany.Seethedefinitionsof“largeacceleratedfiler,acceleratedfiler,andsmallerreportingcompany”inRule12b-2oftheExchangeAct.

Largeacceleratedfilero Acceleratedfilero

Non-acceleratedfilerx(Donotcheckifasmallerreportingcompany) Smallerreportingcompanyo

IndicatebycheckmarkwhethertheRegistrantisashellcompany(asdefinedinRule12b-2oftheAct).YesoNox

Thenumberofsharesoutstandingoftheregistrant’sCommonStockasofJune30,2016,themostrecentpracticabledate,was137,182,606.

DOCUMENTS INCORPORATED BY REFERENCE

SeeIndextoExhibitsimmediatelyfollowingthesignaturepageofthisreport,whichisincorporatedhereinbyreference.

MANITOWOCFOODSERVICE,INC.IndextoQuarterlyReportonForm10-Q

FortheQuarterlyPeriodEndedJune30,2016

PagePART I. FINANCIAL INFORMATION

Item1 FinancialStatements(Unaudited) 5

Item2Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations

29Item3 QuantitativeandQualitativeDisclosuresAboutMarketRisk 37Item4 ControlsandProcedures 37

PART II. OTHER INFORMATION

Item1A RiskFactors 38Item6 Exhibits 38

EXHIBITS

ExhibitIndex 40

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PART I: FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS (UNAUDITED)

IndextoConsolidated(Condensed)FinancialStatements:

FinancialStatements: Page

Consolidated(Condensed)StatementsofOperations 6

Consolidated(Condensed)StatementsofComprehensiveIncome 7

Consolidated(Condensed)BalanceSheets 8

Consolidated(Condensed)StatementsofCashFlows 9

NotestotheConsolidated(Condensed)FinancialStatements 10

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MANITOWOCFOODSERVICE,INC.Consolidated (Condensed) Statements of OperationsFortheThreeandSixMonthsEndedJune30,2016and2015(Unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

Millions of dollars, except per share data 2016 2015 2016 2015

Netsales $ 368.4 $ 407.7 $ 693.9 $ 753.1

Costofsales 233.7 280.8 441.6 519.6

Grossprofit 134.7 126.9 252.3 233.5

Selling,generalandadministrativeexpenses 75.4 69.2 147.2 151.6

Amortizationexpense 7.9 7.9 15.7 15.7

Separationexpense 1.3 0.5 4.3 0.5

Restructuringexpense 0.3 (0.2) 1.6 0.5

Earningsfromoperations 49.8 49.5 83.5 65.2

Interestexpense 27.0 0.4 35.5 0.7

Interest(income)expenseonnoteswithMTW-net — (4.6) 0.1 (9.3)

Other(income)expense-net 3.6 (0.2) 6.0 (0.6)

Earningsbeforeincometaxes 19.2 53.9 41.9 74.4

Incometaxes 4.1 17.0 8.7 23.5

Netearnings $ 15.1 $ 36.9 $ 33.2 $ 50.9

Per Share Data Earningspercommonshare-Basic $ 0.11 $ 0.27 $ 0.24 $ 0.37

Earningspercommonshare-Diluted $ 0.11 $ 0.27 $ 0.24 $ 0.37

Weightedaveragesharesoutstanding-Basic 137,131,572 137,016,712 137,105,290 137,016,712

Weightedaveragesharesoutstanding-Diluted 138,374,379 137,016,712 138,356,213 137,016,712

Theaccompanyingnotesareanintegralpartoftheseunauditedconsolidated(condensed)financialstatements.

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MANITOWOCFOODSERVICE,INC.Consolidated (Condensed) Statements of Comprehensive Income (Loss)FortheThreeandSixMonthsEndedJune30,2016and2015(Unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

Millions of dollars 2016 2015 2016 2015

Netearnings $ 15.1 $ 36.9 $ 33.2 $ 50.9

Othercomprehensiveincome(loss),netoftax: Foreigncurrencytranslationadjustments (6.1) 1.3 11.1 (9.8)Unrealizedgain(loss)onderivatives,netofincometaxes(benefit)of$0.3,$0.0,$0.7and$0.6,respectively 1.5 0.7 2.4 (1.0)

Employeepensionandpost-retirementbenefits,netofincometaxes(benefit)of$0.1,$(0.5),$(5.8)and$0.0,respectively 0.3 (1.2) (8.6) 0.5

Totalothercomprehensiveincome(loss),netoftax (4.3) 0.8 4.9 (10.3)

Comprehensiveincome(loss) $ 10.8 $ 37.7 $ 38.1 $ 40.6

Theaccompanyingnotesareanintegralpartoftheseunauditedconsolidated(condensed)financialstatements.

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MANITOWOCFOODSERVICE,INC.Consolidated (Condensed) Balance SheetsAsofJune30,2016(Unaudited)andDecember31,2015

June 30, December 31,

Millions of dollars, except share data 2016 2015

Assets    

CurrentAssets:

Cashandcashequivalents $ 40.7 $ 32.0

Restrictedcash 0.4 0.6

Accountsreceivable,lessallowancesof$3.7and$4.0,respectively 100.7 63.8

Inventories—net 163.6 145.9

Prepaidsandothercurrentassets 10.7 10.3

Currentassetsheldforsale 6.2 —

Totalcurrentassets 322.3 252.6

Property,plantandequipment—net 111.4 116.4

Goodwill 845.9 845.8

Otherintangibleassets—net 503.3 519.6

Othernon-currentassets 24.1 15.9

Long-termassetsheldforsale — 3.7

Totalassets $ 1,807.0 $ 1,754.0

LiabilitiesandEquity CurrentLiabilities: Accountspayable $ 124.4 $ 129.0

Accruedexpensesandotherliabilities 146.3 157.6

Short-termborrowings 0.1 —Currentportionoflong-termdebtandcapitalleases 1.3 0.4

Productwarranties 31.1 34.3

Totalcurrentliabilities 303.2 321.3

Long-termdebtandcapitalleases 1,369.9 2.3

Deferredincometaxes 152.8 167.9

Pensionandpostretirementhealthobligations 58.8 33.3

Otherlong-termliabilities 33.4 20.5

Totalnon-currentliabilities 1,614.9 224.0

Commitmentsandcontingencies(Note13) TotalEquity(Deficit): Commonstock(300,000,000and0sharesauthorized,137,221,917sharesand0sharesissuedand137,182,606sharesand0sharesoutstanding,respectively) 1.4 —

Additionalpaid-incapital(deficit) (90.8) —

Retainedearnings 17.9 —

Netparentcompanyinvestment — 1,253.2

Accumulatedothercomprehensiveloss (39.6) (44.5)

Totalequity(deficit) (111.1) 1,208.7

Totalliabilitiesandequity $ 1,807.0 $ 1,754.0

Theaccompanyingnotesareanintegralpartoftheseunauditedconsolidated(condensed)financialstatements.

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MANITOWOCFOODSERVICE,INC.Consolidated (Condensed) Statements of Cash FlowsFortheSixMonthsEndedJune30,2016and2015(Unaudited)

Six Months Ended

June 30,

Millions of dollars 2016 2015

Cash Flows From Operating activities

Netearnings $ 33.2 $ 50.9

Adjustmentstoreconcilenetearningstonetcashprovidedby(usedfor)operatingactivities:

Depreciation 8.8 10.0

Amortizationofintangibleassets 15.7 15.7

Amortizationofdeferredfinancingfees 1.9 —

Deferredincometaxes (5.7) 3.5

Stock-basedcompensationexpense 3.4 1.6

Lossonsaleofproperty,plant,andequipment 0.1 0.3

Changesinoperatingassetsandliabilities,excludingtheeffectsofbusinessacquisitionsordispositions:

Accountsreceivable (22.3) (29.6)

Inventories (17.7) (27.0)

Otherassets (5.9) (2.6)

Accountspayable (4.3) (18.0)

Othercurrentandlong-termliabilities (5.0) (15.1)

Netcashprovidedby(usedfor)operatingactivities 2.2 (10.3)

Cash Flows From Investing activities

Capitalexpenditures (6.2) (6.7)

Changesinrestrictedcash 0.2 (0.3)

Netcashusedforinvestingactivities (6.0) (7.0)

Cash Flows From Financing activities

Proceedsfromlong-termdebtandcapitalleases 1,457.0 0.4

Repaymentsonlong-termdebtandcapitalleases (49.6) (0.2)

Debtissuancecosts (40.9) —

Changesinshort-termborrowings 0.1 —

DividendpaidtoMTW (1,362.0) —

NettransactionswithMTW 7.6 16.3

Exercisesofstockoptions 0.4 —

Netcashprovidedbyfinancingactivities 12.6 16.5

Effectofexchangeratechangesoncash (0.1) (0.9)

Netincrease(decrease)incashandcashequivalents 8.7 (1.7)

Balanceatbeginningofperiod 32.0 16.5

Balanceatendofperiod $ 40.7 $ 14.8

Theaccompanyingnotesareanintegralpartoftheseunauditedconsolidated(condensed)financialstatements.

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MANITOWOC FOODSERVICE, INC.Notes to Unaudited Consolidated (Condensed) Financial Statements

For the Three and Six Months Ended June 30, 2016, and 2015 (Unaudited)

1. Description of the Business and Basis of Presentation

The Spin-Off

OnJanuary29,2015,TheManitowocCompany,Inc.("MTW")announcedplanstocreatetwoindependentpubliccompaniestoseparatelyoperateitstwobusinesses:itsCranesbusinessanditsFoodservicebusiness.Toeffecttheseparation,MTWfirstundertookaninternalreorganization,followingwhichMTWheldtheCranesbusiness,andManitowocFoodservice,Inc.("MFS")heldtheFoodservicebusiness.ThenonMarch4,2016,MTWdistributedalltheMFScommonstocktoMTW’sshareholdersonaproratabasis,andMFSbecameanindependentpubliclytradedcompany(the"Distribution").AsusedinthisQuarterlyReportonForm10-Q,“Spin-Off”referstoboththeabovedescribedinternalreorganizationandDistribution,collectively.

Intheseconsolidated(condensed)financialstatements,unlessthecontextotherwiserequires:

• "MFS"andthe"Company"refertoManitowocFoodservice,Inc.anditsconsolidatedsubsidiaries,aftergivingeffecttotheinternalreorganizationandthedistribution,or,inthecaseofinformationasofdatesorforperiodspriortoitsseparationfromMTW,thecombinedentitiesoftheFoodservicebusiness,andcertainotherassetsandliabilitiesthatwerehistoricallyheldattheMTWcorporatelevel,butwerespecificallyidentifiableandattributabletotheFoodservicebusiness;and

• "MTW"referstoTheManitowocCompany,Inc.anditsconsolidatedsubsidiaries,otherthan,forallperiodsfollowingtheSpin-Off,MFS.

• "Spin-Off"referstoboththeabovedescribedinternalreorganizationanddistribution,collectively.

Description of the Business

TheCompanyisamongtheworld’smostpreferredandinnovativecommercialfoodserviceequipmentcompanies.Itdesigns,manufactures,andservicesanintegratedportfolioofhotandcoldcategoryproducts.Ithasoneoftheindustry’sbroadestportfoliosofproductsthatcreateoptimalvalueforitschannelpartnerswhiledeliveringsuperiorperformance,quality,reliability,anddurabilityforitscustomers.TheCompany'scapabilitiesspanrefrigeration,ice-making,cooking,holding,food-preparation,andbeverage-dispensingtechnologies,andallowittoequipentirecommercialkitchensandservetheworld’sgrowingdemandforfoodpreparedawayfromhome.TheCompanysuppliesfoodserviceequipmenttocommercialandinstitutionalfoodserviceoperatorssuchasfull-servicerestaurants,quick-servicerestaurantchains,hotels,caterers,supermarkets,conveniencestores,businessandindustry,hospitals,schoolsandotherinstitutions.

Basis of Presentation

Theaccompanyingunauditedconsolidated(condensed)financialstatementshavebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates("U.S.GAAP").AllintercompanybalancesandtransactionsbetweentheCompanyanditsaffiliateshavebeeneliminated.

DuringtheperiodspresentedpriortotheSpin-OffonMarch4,2016,theCompany'sfinancialstatementswerepreparedonacombinedstandalonebasisderivedfromtheconsolidatedfinancialstatementsandaccountingrecordsofMTW.TheCompanyfunctionedaspartofthelargergroupofcompaniescontrolledbyMTW.Accordingly,MTWperformedcertaincorporateoverheadfunctionsfortheCompany.Therefore,certaincostsrelatedtotheCompanyhavebeenallocatedfromMTWfortheportionofthethreemonthsendedMarch31,2016uptotheSpin-OffonMarch4,2016andfortheentiretyofthethreemonthsendedMarch31,2015.Theseallocatedcostsareprimarilyrelatedto:1)corporateofficers,2)employeebenefitsandcompensation,3)share-basedcompensation,and4)certainadministrativefunctions,whicharenotprovidedatthebusinesslevelincluding,butnotlimitedto,finance,treasury,tax,audit,legal,informationtechnology,humanresources,andinvestorrelations.Wherepossible,thesecostswereallocatedbasedondirectusage,withtheremainderallocatedonabasisofrevenue,headcount,orothermeasurestheCompanydeterminedasreasonable.

ManagementoftheCompanybelievestheassumptionsunderlyingtheunauditedconsolidated(condensed)financialstatements,includingtheassumptionsregardingtheallocatedexpenses,reasonablyreflecttheutilizationofservicesprovidedtoorthebenefitreceivedbytheCompanyduringtheperiodspresented.Nevertheless,theaccompanyingunauditedconsolidated(condensed)financialstatementsmaynotbeindicativeoftheCompany'sfutureperformance,anddonotnecessarilyincludealloftheactualexpensesthatwouldhavebeenincurredbytheCompanyandmaynotreflecttheresultsofoperations,financialposition,andcashflowshadtheCompanybeenastandalonecompanyduringtheentiretyoftheperiodspresented.

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Accounting Policies

Intheopinionofmanagement,theaccompanyingunauditedconsolidated(condensed)financialstatementscontainalladjustmentsnecessaryforafairstatementoftheresultsofoperationsandcomprehensiveincomeforthethreeandsixmonthsendedJune30,2016and2015,thecashflowsforthesixmonthsendedJune30,2016and2015,andthebalancesheetatJune30,2016andDecember31,2015,andexceptasotherwisediscussedsuchadjustmentsconsistofonlythoseofanormalrecurringnature.TheinterimresultsarenotnecessarilyindicativeofresultsforafullyearanddonotcontaininformationincludedintheCompany’sannualconsolidatedfinancialstatementsandnotesfortheyearendedDecember31,2015.Certaininformationandfootnotedisclosures,normallyincludedinfinancialstatementspreparedinaccordancewithU.S.GAAP,havebeencondensedoromittedpursuanttotheSEC’srulesandregulationsdealingwithinterimfinancialstatements.However,theCompanybelievesthatthedisclosuresmadeintheunauditedconsolidated(condensed)financialstatementsincludedhereinareadequatetomaketheinformationpresentednotmisleading.ItissuggestedthattheseunauditedfinancialstatementsbereadinconjunctionwiththefinancialstatementsandthenotestothefinancialstatementsincludedintheCompany’slatestannualreportonForm10-K.

Certainpriorperiodamountshavebeenreclassifiedtoconformtothecurrentperiodpresentation.Alldollaramounts,exceptshareandpershareamounts,areinmillionsofdollarsthroughoutthetablesincludedinthesenotesunlessotherwiseindicated.

Recent Accounting Changes and Pronouncements

OnMarch30,2016,theFinancialAccountingStandardsBoard("FASB")issuedAccountingStandardsUpdate("ASU")No.2016-09,“StockCompensation(Topic718)”whichsimplifiesseveralaspectsoftheaccountingforshare-basedpaymentawardtransactions.ThisASUrequiresthatallexcesstaxbenefitsandtaxdeficienciesshouldberecognizedasincometaxexpenseorbenefitontheincomestatement.Theexcesstaxitemsshouldbeclassifiedwithotherincometaxcashflowsasanoperatingactivity.ThisASUalsoallowsanentitytoaccountforforfeitureswhentheyoccurratherthanthecurrentU.S.GAAPpracticewhereanentitymakesanentity-wideaccountingpolicyelectiontoestimatethenumberofawardsthatareexpectedtovest.ThisASUiseffectiveforpubliccompaniesforfiscalyearsbeginningafterDecember15,2016,includinginterimperiodswithinthosefiscalyearswithearlyadoptionpermitted.TheCompanyiscurrentlyevaluatingtheimpactthattheadoptionofthisASUwillhaveonitsconsolidatedfinancialstatements.

OnFebruary25,2016,theFASBissuedASUNo.2016-02,"Leases(Topic842)"whichrequireslesseestorecognizeright-of-useassetsandleaseliability,initiallymeasuredatpresentvalueoftheleasepayments,onitsbalancesheetforleaseswithtermslongerthan12monthsandclassifiedaseitherfinancingoroperatingleases.ASU2016-02requiresamodifiedretrospectivetransitionapproachforcapitalandoperatingleasesexistingat,orenteredintoafter,thebeginningoftheearliestcomparativeperiodpresentedinthefinancialstatements,andprovidescertainpracticalexpedientsthatcompaniesmayelect.ThisASUiseffectiveforpubliccompaniesforfiscalyearsbeginningafterDecember15,2018,includinginterimperiodswithinthosefiscalyearswithearlyadoptionpermitted.TheCompanyiscurrentlyevaluatingtheimpactthattheadoptionofthisASUwillhaveonitsconsolidatedfinancialstatements.

InJanuary2016,theFASBissuedASUNo.2016-01,"FinancialInstruments(Subtopic825-10)-RecognitionandMeasurementofFinancialAssetsandFinancialLiabilities."ThisASUprovidesguidancefortherecognition,measurement,presentation,anddisclosureoffinancialinstruments.ThisASUiseffectiveforannualandinterimperiodsbeginningafterDecember15,2017,andearlyadoptionisnotpermitted.TheCompanyiscurrentlyevaluatingtheimpacttheadoptionofthisASUwillhaveonitsconsolidatedfinancialstatements.

InNovember2015,theFASBissuedASUNo.2015-17,"BalanceSheetClassificationofDeferredTaxes(Subtopic740-10)."ASU2015-17simplifiesthepresentationofdeferredincometaxesbyeliminatingtherequirementforcompaniestopresentdeferredtaxliabilitiesandassetsascurrentandnon-currentonthebalancesheet.Instead,companieswillberequiredtoclassifyalldeferredtaxassetsandliabilitiesasnon-current.ThisguidanceiseffectiveforannualandinterimperiodsbeginningafterDecember15,2016andearlyadoptionispermitted.TheCompanyearlyadoptedthisASUonaprospectivebasisasofDecember31,2015.Priorperiodswerenotretrospectivelyadjusted.

InSeptember2015,theFASBissuedASUNo.2015-16,"BusinessCombinations(Topic805)-SimplifyingtheAccountingforMeasurement-PeriodAdjustments."TheamendmentsinthisASUrequirethatanacquirerinabusinesscombinationrecognizeadjustmentstoprovisionalamountsthatareidentifiedduringthemeasurementperiodinthereportingperiodinwhichtheadjustmentamountsaredetermined,ratherthanasretrospectiveadjustments.TheamendmentsinthisASUareeffectiveforfiscalyearsbeginningafterDecember15,2015,includinginterimperiodswithinthosefiscalyears.TheamendmentsinthisASUshouldbeappliedprospectivelytoadjustmentstoprovisionalamountsthatoccuraftertheeffectivedateofthisASUwithearlierapplicationpermittedforfinancialstatementsthathavenotbeenissued.TheCompanyadoptedthisaccountingguidanceinthefirstquarteroffiscalyear2016.TheadoptionofthisASUdidnothaveamaterialimpactontheCompany'sconsolidated(condensed)financialstatements.

InAugust2015,theFASBissuedASUNo.2015-15,"PresentationandSubsequentMeasurementofDebtIssuanceCostsAssociatedwithLine-of-CreditArrangements."ThisASUclarifiestheguidancerelatedtoaccountingfordebtissuancecostsrelatedtoline-of-creditarrangements.InApril2015,theFASBissuedASUNo.2015-03,"SimplifyingthePresentationofDebtIssuanceCosts,"whichrequiresentitiestopresentdebtissuancecostsrelatedtoarecognizeddebtliabilityasadirectdeductionfromthecarryingamountofthatdebtliability.WiththeissuanceofASU2015-15,theSECstaffwouldnotobjecttoanentitydeferringandpresentingdebtissuancecostsasanassetandsubsequentlyamortizingthedeferreddebtissuancecostsratablyoverthetermoftheline-of-creditarrangement,regardlessofwhetherthereareanyoutstandingborrowingsontheline-of-creditarrangement.TheCompanyadoptedthisaccountingguidanceinthefirstquarteroffiscalyear2016anditsimpactispresentedintheconsolidated(condensed)financialstatements.

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InJuly2015,theFASBissuedASUNo.2015-11,"Inventory(Topic330):SimplifyingtheMeasurementofInventory."ThisASUchangestheguidanceonaccountingforinventoryaccountedforonafirst-infirst-outbasis(FIFO).Undertherevisedstandard,anentityshouldmeasureFIFOinventoryatthelowerofcostandnetrealizablevalue.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lessreasonablypredictablecostsofcompletion,disposal,andtransportation.Subsequentmeasurementisunchangedforinventorymeasuredonalast-in,first-outbasis(LIFO).TheamendmentsinthisASUareeffectiveforfiscalyears,andforinterimperiodswithinthosefiscalyears,beginningafterDecember15,2016.TheCompanybelievestheadoptionofthisASUwillnothaveamaterialimpactonitsconsolidatedfinancialstatements.

InApril2015,theFASBissuedASUNo.2015-05,"Customer’sAccountingforFeesPaidinaCloudComputingArrangement."ThisASUprovidesguidanceonaccountingforasoftwarelicenseinacloudcomputingarrangement.Ifacloudcomputingarrangementincludesasoftwarelicense,thenthecustomershouldaccountforthesoftwarelicenseelementofthearrangementconsistentwiththeacquisitionofothersoftwarelicenses.Ifacloudcomputingarrangementdoesnotincludeasoftwarelicense,thecustomershouldaccountforthearrangementasaservicecontract.Further,allsoftwarelicensesarewithinthescopeofAccountingStandardsCodification("ASC")Subtopic350-40andwillbeaccountedforconsistentwithotherlicensesofintangibleassets.TheamendmentsinthisASUareeffectiveforfiscalyears,andforinterimperiodswithinthosefiscalyears,beginningafterDecember15,2015.TheCompanyadoptedthisaccountingguidanceinthefirstquarteroffiscalyear2016.TheadoptionofthisASUdidnothaveamaterialimpactontheCompany'sconsolidatedfinancialstatements.

InFebruary2015,theFASBissuedASUNo.2015-02,"Consolidation(Topic820)—AmendmentstotheConsolidationAnalysis."ThisASUamendsthecurrentconsolidationguidanceforboththevariableinterestentity(VIE)andvotinginterestentity(VOE)consolidationmodels.TheamendmentsinthisASUareeffectiveforfiscalyears,andforinterimperiodswithinthosefiscalyears,beginningafterDecember15,2015.TheCompanyadoptedthisaccountingguidanceinthefirstquarteroffiscalyear2016.TheadoptionofthisASUdidnothaveamaterialimpactontheCompany'sconsolidatedfinancialstatements.

InJanuary2015,theFASBissuedASUNo.2015-01,"IncomeStatement—ExtraordinaryandUnusualItems."ThisupdateeliminatesfromU.S.GAAPtheconceptofextraordinaryitems.ThisASUiseffectiveforthefirstinterimperiodwithinfiscalyearsbeginningafterDecember15,2015,withearlyadoptionpermittedprovidedthattheguidanceisappliedfromthebeginningofthefiscalyearofadoption.Areportingentitymayapplytheamendmentsprospectivelyorretrospectivelytoallpriorperiodspresentedinthefinancialstatements.TheCompanyadoptedthisaccountingguidanceinthefirstquarteroffiscalyear2016.TheadoptionofthisASUdidnothaveamaterialimpactonitsconsolidatedfinancialstatements.

InAugust2014,theFASBissuedASUNo.2014-15,"PresentationofFinancialStatements—GoingConcern."Thisupdateprovidesguidanceonmanagement’sresponsibilityinevaluatingwhetherthereissubstantialdoubtaboutacompany’sabilitytocontinueasagoingconcernandtoproviderelatedfootnotedisclosures.ThisASUiseffectiveinthefirstannualperiodendingafterDecember15,2016,withearlyadoptionpermitted.TheCompanybelievestheadoptionofthisASUwillnothaveamaterialimpactonitsconsolidatedfinancialstatements.

InMay2014,theFASBissuedASUNo.2014-09,"RevenuefromContractswithCustomers."ThisASUprovidesaprinciples-basedapproachtorevenuerecognitiontorecordthetransferofgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangeforthosegoodsorservices.ThisASUprovidesafive-stepmodeltobeappliedtoallcontractswithcustomers.Thefivestepsaretoidentifythecontract(s)withthecustomer,identifytheperformanceobligationsinthecontact,determinethetransactionprice,allocatethetransactionpricetotheperformanceobligationsinthecontractandrecognizerevenuewheneachperformanceobligationissatisfied.TherevenuestandardiseffectiveforthefirstinterimperiodwithinfiscalyearsbeginningafterDecember15,2017(asfinalizedbytheFASBinAugust2015inASU2015-14andasupdatedbyASUs2016-10,2016-11and2016-12),andcanbeappliedeitherretrospectivelytoeachpriorreportingperiodpresentedorretrospectivelywiththecumulativeeffectofinitiallyapplyingtheupdaterecognizedatthedateofinitialapplicationalongwithadditionaldisclosures.Earlyadoptionispermittedasoftheoriginaleffectivedate—thefirstinterimperiodwithinfiscalyearsbeginningafterDecember15,2016.TheCompanyisevaluatingtheimpacttheadoptionofthisASUwillhaveonitsconsolidatedfinancialstatements.

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2. Fair Value of Financial Instruments

ThefollowingtablessetforthfinancialassetsandliabilitiesthatwereaccountedforatfairvalueonarecurringbasisasofJune30,2016andDecember31,2015bylevelwithinthefairvaluehierarchy.Financialassetsandliabilitiesareclassifiedintheirentiretybasedonthelowestlevelofinputthatissignificanttothefairvaluemeasurement.

  Fair Value as of June 30, 2016

(in millions) Level 1 Level 2 Level 3 TotalCurrent assets:

Foreigncurrencyexchangecontracts $ — $ 1.3 $ — $ 1.3

Commoditycontracts — 0.1 — 0.1

Total current assets at fair value $ — $ 1.4 $ — $ 1.4

Non-current Assets: Commoditycontracts — 0.1 — 0.1

Total non-current assets at fair value — 0.1 — 0.1

Total assets at fair value $ — $ 1.5 $ — $ 1.5

Current Liabilities:

Foreigncurrencyexchangecontracts $ — $ 0.9 $ — $ 0.9

Commoditycontracts — 0.7 — 0.7

Total current liabilities at fair value $ — $ 1.6 $ — $ 1.6

Total liabilities at fair value $ — $ 1.6 $ — $ 1.6

  Fair Value as of December 31, 2015

(in millions) Level 1 Level 2 Level 3 TotalCurrent Assets:

Foreigncurrencyexchangecontracts $ — $ — $ — $ —

Total current assets at fair value $ — $ — $ — $ —

Total assets at fair value $ — $ — $ — $ —

Current Liabilities:

Foreigncurrencyexchangecontracts $ — $ 0.1 $ — $ 0.1

Commoditycontracts — 3.1 — 3.1

Total current liabilities at fair value $ — $ 3.2 $ — $ 3.2

Non-current Liabilities:

Commoditycontracts $ — $ 0.4 $ — $ 0.4

Total non-current liabilities at fair value $ — $ 0.4 $ — $ 0.4

Total liabilities at fair value $ — $ 3.6 $ — $ 3.6

ThefairvalueoftheCompany’s9.50%SeniorNotesdue2024(the"SeniorNotes")andTermLoanBunderitsSeniorSecuredCreditFacilitieswasapproximately$477.3millionand$960.7million,respectively,asofJune30,2016.NeithertheSeniorNotesnortheTermLoanBexistedasofDecember31,2015.SeeNote9,"Debt,"foradescriptionofthedebtinstrumentsandtheirrelatedcarryingvalues.

ASCSubtopic820-10,"FairValueMeasurement,"definesfairvalueasthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.ASCSubtopic820-10classifiestheinputsusedtomeasurefairvalueintothefollowinghierarchy:

Level1 Unadjustedquotedpricesinactivemarketsforidenticalassetsorliabilities

Level2 Unadjustedquotedpricesinactivemarketsforsimilarassetsorliabilities,or

Unadjustedquotedpricesforidenticalorsimilarassetsorliabilitiesinmarketsthatarenotactive,or

Inputsotherthanquotedpricesthatareobservablefortheassetorliability

Level3 Unobservableinputsfortheassetorliability

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TheCompanyendeavorstoutilizethebestavailableinformationinmeasuringfairvalue.TheCompanyestimatesthefairvalueofitsSeniorNotesandTermLoanBbasedonquotedmarketpricesoftheinstruments.Becausethesemarketsaretypicallythinlytraded,theassetsandliabilitiesareclassifiedasLevel2withinthevaluationhierarchy.Thecarryingvaluesofcashandcashequivalents,accountsreceivable,accountspayable,anddeferredpurchasepricenotesonreceivablessold(seeNote8,"AccountsReceivableSecuritization"),approximatefairvalue,withoutbeingdiscountedasofJune30,2016andDecember31,2015duetotheshort-termnatureoftheseinstruments.

Asaresultofitsglobaloperatingandfinancingactivities,theCompanyisexposedtomarketrisksfromchangesinforeigncurrencyexchangerates,andcommodityprices,whichmayadverselyaffectitsoperatingresultsandfinancialposition.Whendeemedappropriate,theCompanyminimizestheserisksthroughtheuseofderivativefinancialinstruments.Derivativefinancialinstrumentsareusedtomanageriskandarenotusedfortradingorotherspeculativepurposes,andtheCompanydoesnotuseleveragedderivativefinancialinstruments.Theforeigncurrencyexchangeandcommoditycontractsarevaluedthroughanindependentvaluationsourcewhichusesanindustrystandarddataprovider,withresultingvaluationsperiodicallyvalidatedthroughthird-partyorcounterpartyquotes.Assuch,thesederivativeinstrumentsareclassifiedwithinLevel2.

3. Derivative Financial Instruments

TheCompanyusesderivativeinstrumentstomanagebusinessriskexposuresthathavebeenidentifiedthroughtheriskidentificationandmeasurementprocess,providedtheyclearlyqualifyas"hedging"activitiesasdefinedinitsriskpolicy.ItistheCompany’spolicytoenterintoderivativetransactionsonlytotheextenttrueexposuresexist;theCompanydoesnotenterintoderivativetransactionsfortradingorotherspeculativepurposes.

TheprimaryriskstheCompanymanagesusingderivativeinstrumentsarecommoditypriceriskandforeigncurrencyexchangerisk.SwapcontractsonvariouscommoditiesareusedtomanagethepriceriskassociatedwithforecastedpurchasesofmaterialsusedintheCompany’smanufacturingprocess.TheCompanyalsoentersintovariousforeigncurrencyderivativeinstrumentstohelpmanageforeigncurrencyriskassociatedwithitsprojectedpurchasesandsalesandforeigncurrencydenominatedreceivableandpayablebalances.

TheCompanydesignatescommodityswapsandforeigncurrencyexchangecontractsascashflowhedgesofforecastedpurchasesofcommoditiesandcurrencies.

Forderivativeinstrumentsthataredesignatedandqualifyascashflowhedges,theeffectiveportionofthegainorlossonthederivativeisreportedasacomponentofothercomprehensiveincome(loss)andreclassifiedintoearningsinthesameperiodorperiodsduringwhichthehedgedtransactionaffectsearnings.Gainsandlossesonthederivativeinstrumentsrepresentingeitherhedgeineffectivenessorhedgecomponentsexcludedfromtheassessmentofeffectivenessarerecognizedincurrentearnings.InthenexttwelvemonthstheCompanyestimates$0.3millionofunrealizedgain,netoftax,relatedtocommoditypriceandcurrencyratehedgingwillbereclassifiedfromothercomprehensive(loss)incomeintoearnings.Foreigncurrencyandcommodityhedgingisgenerallycompletedprospectivelyonarollingbasisfortwelveandtwenty-fourmonths,respectively,dependingonthetypeofriskbeinghedged.

Forderivativeinstrumentsthatarenotdesignatedashedginginstruments,thegainsorlossesonthederivativesarerecognizedincurrentearningswithinother(expense)income,netintheconsolidated(condensed)statementofoperations.

Thefairvalueofoutstandingderivativecontractsrecordedasliabilitiesintheaccompanyingconsolidated(condensed)balancesheetasofJune30,2016andDecember31,2015areincludedwithinaccountspayable,accruedexpensesandotherlong-termliabilitiesandwerenotmaterialintheperiodspresented.

4. Inventories

ThecomponentsofinventoriesatJune30,2016andDecember31,2015aresummarizedasfollows:

June 30, December 31,

(in millions) 2016 2015Inventories—gross:    

Rawmaterials $ 74.1 $ 70.7

Work-in-process 19.4 18.7

Finishedgoods 98.2 83.4

Totalinventories—gross 191.7 172.8

Excessandobsoleteinventoryreserve (24.7) (23.5)

NetinventoriesatFIFOcost 167.0 149.3

ExcessofFIFOcostsoverLIFOvalue (3.4) (3.4)

Inventories—net $ 163.6 $ 145.9

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5. Property, Plant and Equipment

Thecomponentsofproperty,plantandequipmentatJune30,2016andDecember31,2015aresummarizedasfollows:

June 30, December 31,

(in millions) 2016 2015Land $ 7.3 $ 7.3

Buildingandimprovements 91.8 94.3

Machinery,equipmentandtooling 213.2 216.0

Furnitureandfixtures 6.0 6.2

Computerhardwareandsoftware 53.8 51.2

Constructioninprogress 10.2 9.8

Totalcost 382.3 384.8

Lessaccumulateddepreciation (270.9) (268.4)

Property,plantandequipment-net $ 111.4 $ 116.4

6. Goodwill and Other Intangible Assets

TheCompanyhasthreereportablesegments:Americas,EMEA,andAPAC.TheAmericassegmentincludestheU.S.,CanadaandLatinAmerica.TheEMEAsegmentismadeupofmarketsinEurope,MiddleEastandAfrica,includingRussiaandthecommonwealthofindependentstates.TheAPACsegmentisprincipallycomprisedofmarketsinChina,Singapore,Australia,India,Malaysia,Indonesia,ThailandandPhilippines.ThechangesinthecarryingamountofgoodwillbyreportablesegmentforthesixmonthsendedJune30,2016,wereasfollows:

(in millions) Americas EMEA APAC Total

BalanceasofDecember31,2015 $ 832.6 $ 4.8 $ 8.4 $ 845.8

Foreigncurrencyimpact — 0.1 — 0.1

BalanceasofJune30,2016 $ 832.6 $ 4.9 $ 8.4 $ 845.9

TheCompanyaccountsforgoodwillandotherintangibleassetsundertheguidanceofASCTopic350,"Intangibles-GoodwillandOther."TheCompanyperformsanannualimpairmenttestormorefrequentlyifeventsorchangesincircumstancesindicatethattheassetmightbeimpaired.TheCompanytestsitsreportingunitsandindefinite-livedintangibleassetsusingafair-valuemethodbasedonthepresentvalueoffuturecashflows,whichinvolvesmanagement’sjudgmentsandassumptionsabouttheamountsofthosecashflowsandthediscountratesused.Theestimatedfairvalueisthencomparedwiththecarryingamountofthereportingunit,includingrecordedgoodwill,orindefinite-livedintangibleasset.Theintangibleassetisthensubjecttoriskofwrite-downtotheextentthatthecarryingamountexceedstheestimatedfairvalue.

AsofJune30,2016,theCompanyperformedtheannualimpairmenttestforitsreportingunits,whichwereAmericas,EMEA,andAPAC,aswellasitsindefinite-livedintangibleassets,andbasedonthoseresults,thefairvalueofeachoftheCompany'sreportingunitsexceededtheirrespectivecarryingvaluesandnoimpairmentwasindicated.

ThegrosscarryingamountandaccumulatedamortizationoftheCompany'sintangibleassetsotherthangoodwillareasfollowsasofJune30,2016andDecember31,2015:

  June 30, 2016 December 31, 2015

(in millions)

GrossCarryingAmount

AccumulatedAmortizationAmount

NetBookValue

GrossCarryingAmount

AccumulatedAmortizationAmount

NetBookValue

Trademarksandtradenames $ 174.8 $ — $ 174.8 $ 175.1 $ — $ 175.1

Customerrelationships 415.3 (161.0) 254.3 415.2 (150.4) 264.8

Patents 1.7 (1.7) — 1.7 (1.6) 0.1

Otherintangibles 142.6 (68.4) 74.2 143.2 (63.6) 79.6

Total $ 734.4 $ (231.1) $ 503.3 $ 735.2 $ (215.6) $ 519.6

AmortizationexpenseforthethreemonthsendedJune30,2016and2015was$7.9million.

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AmortizationexpenseforthesixmonthsendedJune30,2016and2015was$15.7million.

7. Accounts Payable and Accrued Expenses and Other Liabilities

AccountspayableandAccruedexpensesandotherliabilitiesatJune30,2016andDecember31,2015aresummarizedasfollows:

June 30, December 31,

(in millions) 2016 2015

Accountspayable: Tradeaccountspayableandinterestpayable $ 123.1 $ 121.7

Incometaxespayable 1.3 7.3

Totalaccountspayable $ 124.4 $ 129.0

Accruedexpensesandotherliabilities: Employeerelatedexpenses $ 31.9 $ 24.5

Restructuringexpenses 4.5 16.8

Profitsharingandincentives 10.9 3.9

Accruedrebates 41.6 51.6

Deferredrevenue-current 3.6 3.8

DividendpayabletoMTW — 10.2

Customeradvances 5.8 2.9

Productliability 3.1 2.6

Miscellaneousaccruedexpenses 44.9 41.3

Totalaccruedexpensesandotherliabilities $ 146.3 $ 157.6

8. Accounts Receivable Securitization

PriortotheSpin-Off,MFSsoldaccountsreceivablethroughanaccountsreceivablesecuritizationfacility,("thePriorSecuritizationProgram"),comprisedoftwofundingentities:ManitowocFunding,LLC("U.S.Seller")andManitowocCaymanIslandsFundingLtd.("CaymanSeller").TheU.S.SellerhistoricallyserviceddomesticentitiesofboththeFoodserviceandCranessegmentsofMTWandremittedallfundsreceiveddirectlytoMTW.TheCaymanSellerhistoricallyservicedsolelyMFSforeignentitiesandremittedallfundstoMFSentities.TheU.S.SellerentityremainedwithMTWsubsequenttotheSpin-Off,whiletheCaymanSellerwastransferredtoMFSsubsequenttotheSpin-Off.AstheU.S.SellerisnotdirectlyattributabletoMFS,onlythereceivableswhichweretransferredtotheU.S.SellerbutnotsoldarereflectedinMFS'consolidated(condensed)balancesheet.AportionoftheU.S.Seller’shistoricalexpensesrelatedtobondadministrationfeesandsettlementfeesareallocatedtoMFS.AstheCaymanSellerisdirectlyattributabletoMFS,theassets,liabilities,incomeandexpensesoftheCaymanSellerareincludedinMFS’consolidated(condensed)statementofoperationsandbalancesheet.MFS'costoffundsunderthefacilityusedaLIBORindexrateplusa1.25%fixedspread.

OnMarch3,2016,theCompanyenteredintoanew$110.0millionaccountsreceivablesecuritizationprogram(the"2016SecuritizationFacility")amongtheCaymanSeller,asseller,MFS,GarlandCommercialRangesLimited,ConvothermElektrogeräteGmbH,ManitowocDeutschlandGmbH,ManitowocFoodserviceUKLimited,ManitowocFoodserviceAsiaPacificPrivateLimited,andtheotherpersonswhomaybefromtimetotime,apartythereto,asservicers,withWellsFargoBank,NationalAssociation,aspurchaserandagent,wherebyMFSwillsellcertainofitsdomestictradeaccountsreceivableandcertainofitsnon-U.S.tradeaccountsreceivabletoawholly-owned,bankruptcy-remote,foreignspecialpurposeentity,whichentityinturn,willsell,convey,transferandassigntoathird-partyfinancialinstitution(a“Purchaser”),alloftheright,titleandinterestinandtoitspoolofreceivables.ThePurchaserwillreceiveownershipofthepoolofreceivables.TheCompany,alongwithcertainofitssubsidiaries,actasservicersofthereceivablesandassuchadminister,collectandotherwiseenforcethereceivables.Theservicerswillbecompensatedfordoingsoontermsthataregenerallyconsistentwithwhatwouldbechargedbyanunrelatedservicer.Asservicers,theywillinitiallyreceivepaymentsmadebyobligorsonthereceivablesbutwillberequiredtoremitthosepaymentsinaccordancewithareceivablespurchaseagreement.ThePurchaserwillhavenorecourseforuncollectiblereceivables.The2016SecuritizationFacilityalsocontainscustomaryaffirmativeandnegativecovenants.Amongotherrestrictions,thesecovenantsrequiretheCompanytomeetspecifiedfinancialtests,whichincludeaConsolidatedInterestCoverageRatioandaConsolidatedTotalLeverageRatiothatarethesameasthecovenantratiosrequiredperthe2016CreditAgreement.

Duetoashortaveragecollectioncycleoflessthan60daysforsuchaccountsreceivableaswellastheCompany'scollectionhistory,thefairvalueofitsdeferredpurchasepricenotesapproximatedbookvalue.ThefairvalueofthedeferredpurchasepricenotesrecordedatJune30,2016andDecember31,2015was$75.9millionand$48.4million,respectively,andisincludedinaccountsreceivableintheaccompanyingconsolidated(condensed)balancesheets.

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TradeaccountsreceivablessoldtothePurchaserandbeingservicedbytheCompanytotaled$90.7millionatJune30,2016and$100.9millionatDecember31,2015.Ofthisdecrease,approximately$15.9millionwasattributabletothebalancebeingallocatedfromMTWfromacombinedsecuritizationfacilityonacarveoutbasisatDecember31,2015ascomparedtothespecificdeferredpurchasepricenotesonastandalonebasisatJune30,2016andisreflectedinNetTransactionswithMTWintheCashFlowsfromFinancingactivitiessectionoftheconsolidated(condensed)statementofcashflows.

Transactionsunderthe2016SecuritizationFacilityandthePriorSecuritizationProgramwereaccountedforassalesinaccordancewithASCTopic860,"TransfersandServicing."SalesoftradereceivablestothePurchaserarereflectedasareductionofaccountsreceivableintheaccompanyingconsolidated(condensed)balancesheetsandtheproceedsreceived,includingcollectionsonthedeferredpurchasepricenotes,areincludedincashflowsfromoperatingactivitiesintheaccompanyingconsolidated(condensed)statementsofcashflows.TheCompanydeemstheinterestrateriskrelatedtothedeferredpurchasepricenotestobedeminimis,primarilyduetotheshortaveragecollectioncycleoftherelatedreceivables(i.e.,60days)asnotedabove.

9. Debt

Senior Secured Credit Facilities

OnMarch3,2016,theCompanyenteredintoacreditagreement(the"2016CreditAgreement")foranewseniorsecuredrevolvingcreditfacilityinanaggregateprincipalamountof$225.0million(the"RevolvingFacility")andaseniorsecuredTermLoanBfacilityinanaggregateprincipalamountof$975.0million(the"TermLoanBFacility"and,togetherwiththeRevolvingFacility,the"SeniorSecuredCreditFacilities")withJPMorganChaseBank,N.A,asadministrativeagentandcollateralagent,J.P.MorganSecuritiesLLC,GoldmanSachsBankUSA,HSBCSecurities(USA)Inc.,andCitigroupGlobalMarketsInc.,onbehalfofcertainofitsaffiliates,asjointleadarrangersandjointbookrunners,andcertainlenders,aslenders.TheRevolvingFacilityincludes(i)a$20.0millionsublimitfortheissuanceoflettersofcreditoncustomaryterms,and(ii)a$40.0millionsublimitforswinglineloansoncustomaryterms.TheCompanyenteredintosecurityandotheragreementsrelatingtothe2016CreditAgreement.

BorrowingsundertheSeniorSecuredCreditFacilitiesbearinterestatarateperannumequalto,attheoptionofMFS,(i)LIBORplustheapplicablemarginofapproximately4.75%fortermloanssubjecttoa1.00%LIBORfloorand1.50%-2.75%forrevolvingloans,basedonconsolidatedtotalleverage,or(ii)analternatebaserateplustheapplicablemargin,whichwillbe1.00%lowerthanforLIBORloans.

The2016CreditAgreementcontainsfinancialcovenantsincluding(a)aConsolidatedInterestCoverageRatio,whichmeasurestheratioof(i)ConsolidatedEBITDA,asdefinedinthe2016CreditAgreement,to(ii)consolidatedcashinterestexpense,(b)aConsolidatedTotalLeverageRatio,whichmeasurestheratioof(i)consolidatedindebtednessto(ii)ConsolidatedEBITDAforthemostrecentfourfiscalquarters.ThecurrentcovenantlevelsofthefinancialcovenantsundertheSeniorSecuredCreditFacilityareassetforthbelow:

Fiscal Quarter Ending Consolidated Total Leverage Ratio (less than) Consolidated Interest Coverage Ratio (greater than)March31,2016 6.25:1.00 2.00:1.00June30,2016 6.25:1.00 2.00:1.00

ObligationsoftheCompanyundertheSeniorSecuredCreditFacilitiesarejointlyandseverallyguaranteedbycertainofitsexistingandfuturedirectandindirectlywholly-ownedU.S.subsidiaries(butexcluding(i)unrestrictedsubsidiaries,(ii)immaterialsubsidiaries,and(iii)specialpurposesecuritizationvehicles).

ThereisafirstpriorityperfectedlienonsubstantiallyalloftheassetsandpropertyoftheCompanyandguarantorsandproceedstherefromexcludingcertainexcludedassets.ThelienssecuringtheobligationsoftheCompanyundertheRevolvingFacilityandtheTermLoanBFacilityareparipassu.

Senior Notes

TheCompanyissued9.50%SeniorNotesdue2024inanaggregateprincipalamountof$425.0million(the"SeniorNotes")underanindenturewithWellsFargoBank,NationalAssociation,astrustee(the"Trustee").TheSeniorNotesweresoldtoqualifiedinstitutionalbuyerspursuanttoRule144A(andoutsidetheUnitedStatesinrelianceonRegulationS)undertheSecuritiesAct.TheSeniorNotesarefullyandunconditionallyguaranteed,jointlyandseverally,onanunsecuredbasisbyeachoftheCompany’sdomesticrestrictedsubsidiariesthatisaborrowerorguarantorundertheSeniorSecuredCreditFacilities.TheSeniorNotesandthesubsidiaryguaranteesareunsecured,seniorobligations.Thenotesareredeemable,attheCompany'soption,inwholeorinpartfromtimetotime,atanytimepriortoFebruary15,2019,atapriceequalto100.0%oftheprincipalamountthereofplusa“make-whole”premiumandaccruedbutunpaidinteresttothedateofredemption.Inaddition,theCompanymayredeemthenotesatitsoption,inwholeorinpart,atthefollowingredemptionprices(expressedaspercentagesoftheprincipalamountthereof)ifredeemedduringthe12-monthperiodcommencingonFebruary15oftheyearssetforthbelow:

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Year Percentage

2019 107.1%2020 104.8%2021 102.4%2022andthereafter 100.0%

TheCompanymustgenerallyoffertorepurchasealloftheoutstandingSeniorNotesupontheoccurrenceofcertainspecificchangeofcontroleventsatapurchasepriceequalto101.0%oftheprincipalamountofSeniorNotespurchasedplusaccruedandunpaidinteresttothedateofpurchase.Theindentureprovidesforcustomaryeventsofdefault.Generally,ifaneventofdefaultoccurs(subjecttocertainexceptions),theTrusteeortheholdersofatleast25.0%inaggregateprincipalamountofthethen-outstandingSeniorNotesmaydeclarealltheSeniorNotestobedueandpayableimmediately.

OutstandingdebtatJune30,2016andDecember31,2015issummarizedasfollows:

June 30, December 31,

(in millions) 2016 2015

Revolvingcreditfacility $ 32.0 $ —

TermLoanB 950.0 —

SeniorNotesdue2024 425.0 —

Other 3.3 2.7

Totaldebtandcapitalleasesincludingcurrentportion 1,410.3 2.7

Lesscurrentportionandshort-termborrowings (1.4) (0.4)

Lessunamortizeddebtissuancecosts (39.0) —

Totallong-termdebtandcapitalleases $ 1,369.9 $ 2.3

AsofJune30,2016,theCompanyhadoutstanding$3.3millionofotherindebtednessthathasaweighted-averageinterestrateofapproximately4.39%perannum.

AsofJune30,2016,theCompanyhad$32.0millionofborrowingsoutstandingundertheRevolvingFacility.DuringthequarterendedJune30,2016,thehighestdailyborrowingwas$49.0millionandtheaverageborrowingwas$31.8million,whiletheaverageinterestratewas3.47%perannum.TheinterestratefluctuatesbaseduponLIBORoraPrimerateplusaspread,whichisbasedupontheConsolidatedTotalLeverageRatiooftheCompany.AsofJune30,2016,thespreadsforLIBORandPrimeborrowingswere2.75%and1.75%,respectively,giventheCompany’seffectiveConsolidatedTotalLeverageRatioforthisperiod.

AsofJune30,2016,theCompanywasincompliancewithallaffirmativeandnegativecovenantsinitsdebtinstruments,inclusiveofthefinancialcovenantspertainingtotheSeniorSecuredCreditFacilityandthe2024SeniorNotes.Baseduponmanagement’scurrentplansandoutlook,managementbelievestheCompanywillbeabletocomplywiththesecovenantsduringthesubsequent12months.AsofJune30,2016theCompany'sConsolidatedTotalLeverageRatiowas5.52:1,whilethemaximumratiois6.25:1anditsConsolidatedInterestCoverageRatiowas3.25:1,abovetheminimumratioof2.00:1.

10. Income Taxes

ForthethreemonthsendedJune30,2016,theCompanyrecordeda$4.1millionincometaxprovision,comparedtoa$17.0millionincometaxprovisionforthethreemonthsendedJune30,2015.ThedecreaseintheCompany’staxprovisionforthethreemonthsendedJune30,2016,relativetothethreemonthsendedJune30,2015,resultedprimarilyfroma$34.7millionreductioninearningsfromoperationsbeforeincometaxesandtherelativeweightingofforeignearningsbeforeincometaxesintherespectiveperiods.

ForthesixmonthsendedJune30,2016,theCompanyrecordedan$8.7millionincometaxprovision,comparedtoa$23.5millionincometaxprovisionforthesixmonthsendedJune30,2015.ThedecreaseintheCompany’staxprovisionforthesixmonthsendedJune30,2016,relativetotheprioryearresultedprimarilyfrom$2.9millionintax-relatedout-of-periodbalancesheetadjustmentsrelatedtotheSpin-Offthatwererecognizedasdiscreteadjustmentsintheincometaxprovisionforthefirstquarterof2016.TheCompanydoesnotbelievetheseadjustmentsarematerialtoitsunauditedconsolidated(condensed)financialstatementsforthesixmonthsendedJune30,2016,oritscomparativeannualorquarterlyfinancialstatements.Theseadjustmentswerecoupledwitha$32.5millionreductioninearningsfromoperationsbeforeincometaxesforthesixmonthperiodendedJune30,2016comparedtothefirstsixmonthsof2015.

TheCompany'seffectivetaxratevariesfromthe35%U.S.federalstatutoryrateduetotherelativeweightingofforeignearningsbeforeincometaxesandforeigneffectivetaxratesthataregenerallylowerthantheU.S.federalstatutoryrate.ForeignearningsaregeneratedfromoperationsinthethreereportablesegmentsofAmericas,EMEA,andAPAC.

TheCompanywillcontinuetoperiodicallyevaluateitsvaluationallowancerequirementsinlightofchangingfactsandcircumstances,andmayadjustitsdeferredtaxassetvaluationallowancesaccordingly.ItisreasonablypossiblethattheCompanywilleitheraddto,orreversea

18

portionofitsexistingdeferredtaxassetvaluationallowancesinthefuture.SuchchangesinthedeferredtaxassetvaluationallowanceswillbereflectedinthecurrentoperationsthroughtheCompany’sincometaxprovision,andcouldhaveamaterialeffectonoperatingresults.

TheCompany'sunrecognizedtaxbenefits,includinginterestandpenalties,were$12.1millionand$16.6millionasofJune30,2016andDecember31,2015,respectively.ThedecreaseforthesixmonthsendedJune30,2016relatedtotheportionoftheunrecognizedtaxbenefitsallocabletotheCompanythatwereincludedinequityandasecondquarterreductioninunrecognizedtaxbenefitsof$0.4million.Duringthenexttwelvemonths,itisreasonablypossiblethatunrecognizedtaxbenefitswilldecreaseby$1.2millionduetoexpirationofstatuteoflimitationperiodsfortherelateditems.

TheCompanyregularlyassessesthelikelihoodofanadverseoutcomeresultingfromexaminationstodeterminetheadequacyofitstaxreserves.AsofJune30,2016,theCompanybelievesthatitismorelikelythannotthatthetaxpositionsithastakenwillbesustainedupontheresolutionofitsauditsresultinginnomaterialimpactonitsconsolidatedfinancialpositionandtheresultsofoperationsandcashflows.However,thefinaldeterminationwithrespecttoanytaxaudits,andanyrelatedlitigation,couldbemateriallydifferentfromtheCompany’sestimatesand/orfromitshistoricalincometaxprovisionsandaccrualsandcouldhaveamaterialeffectonoperatingresultsand/orcashflowsintheperiodsforwhichthatdeterminationismade.Inaddition,futureperiodearningsmaybeadverselyimpactedbylitigationcosts,settlements,penalties,and/orinterestassessments.

11. Equity

OnMarch4,2016,MTWdistributed137.0millionsharesofMFScommonstocktoMTW’sshareholdersonaproratabasis,andMFSbecameanindependentpubliclytradedcompanywitheachshareholderreceivingoneshareofitscommonstockforeachshareofMTWcommonstockheldbytheshareholderonFebruary22,2016,therecorddateforthedistribution.AnyfractionalsharesofitscommonstockotherwiseissuabletoMTWshareholderswereaggregatedintowholesharesandsoldontheopenmarket,andthefractionalshareholderswillreceiveaproratashareoftheproceedsofthesale,afterdeductinganytaxesrequiredtobewithheldandafterdeductinganamountequaltoallbrokeragefeesandothercostsattributedtothesale.

OnMarch3,2016,priortothecompletionoftheSpin-Off,MFSpaidaone-timecashdividendtoMTWof$1.362billion.MFSdidnotdeclareorpayanyotherdividendstoitsstockholdersduringthethreeorsixmonthsendedJune30,2016orJune30,2015,respectively.

ThefollowingisarollforwardofequityforthesixmonthsendedJune30,2016and2015:

(in millions, except share data) SharesCommonStock

AdditionalPaid-In Capital

(Deficit)RetainedEarnings

Net ParentCompanyInvestment

Accumulated OtherComprehensive (Loss)

IncomeTotal Equity(Deficit)

BalanceatDecember31,2015 — $ — $ — $ — $ 1,253.2 $ (44.5) $ 1,208.7Netearnings — — — 17.9 15.3 — 33.2NettransferstoMTW — — — — (1,362.0) — (1,362.0)Separationrelatedadjustments — — — — (1.0) (47.4) (48.4)Reclassificationofnetinvestmenttoadditionalpaid-incapital — — (94.5) — 94.5 — —IssuanceofcommonstockatSpin-off 137,016,712 1.4 (1.4) — — — —Issuanceofcommonstock,equity-basedcompensationplans 165,894 — 1.1 — — — 1.1Stock-basedcompensationexpense

— — 3.4 — — — 3.4AdjustmentfromSpin-off — — 0.6 — — — 0.6Othercomprehensiveincome(loss) — — — — — 52.3 52.3

BalanceatJune30,2016 137,182,606 $ 1.4 $ (90.8) $ 17.9 $ — $ (39.6) $ (111.1)

(in millions, except share data) SharesCommonStock

Additional Paid-InCapital

RetainedEarnings

Net ParentCompanyInvestment

Accumulated OtherComprehensive (Loss)

Income Total Equity

BalanceatDecember31,2014 — $ — $ — $ — $ 1,272.1 $ (20.7) $ 1,251.4Netearnings — — — — 50.9 — 50.9Othercomprehensiveincome(loss) — — — — — (10.3) (10.3)Netincreaseinnetparentcompanyinvestment — — — — 30.3 — 30.3

BalanceatJune30,2015 — $ — $ — $ — $ 1,353.3 $ (31.0) $ 1,322.3

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Reconciliationsforthechangesinaccumulatedothercomprehensiveincome(loss),netoftax,bycomponentforthethreeandsixmonthsendedJune30,2016and2015areasfollows:

(in millions) Foreign Currency

Translation Gains and Losses onCash Flow Hedges Pension & Postretirement Total

BalanceatDecember31,2015 $ (7.9) $ (1.8) $ (34.8) $ (44.5)Othercomprehensiveincome(loss)beforereclassifications 17.2 0.3 (9.4) 8.1Amountsreclassifiedfromaccumulatedothercomprehensiveincome(loss) — 0.6 0.5 1.1Netcurrentperiodothercomprehensiveincome(loss) 17.2 0.9 (8.9) 9.2

BalanceatMarch31,2016 $ 9.3 $ (0.9) $ (43.7) $ (35.3)Othercomprehensive(loss)incomebeforereclassifications (6.1) 1.1 0.1 (4.9)Amountsreclassifiedfromaccumulatedothercomprehensiveincome(loss) — 0.4 0.2 0.6Netcurrentperiodothercomprehensiveincome(loss) (6.1) 1.5 0.3 (4.3)

BalanceatJune30,2016 $ 3.2 $ 0.6 $ (43.4) $ (39.6)

(in millions) Foreign Currency

Translation Gains and Losses onCash Flow Hedges Pension & Postretirement Total

BalanceatDecember31,2014 $ 17.3 $ (1.0) $ (37.0) $ (20.7)Othercomprehensiveincome(loss)beforereclassifications (11.1) (2.4) 1.4 (12.1)Amountsreclassifiedfromaccumulatedothercomprehensiveincome(loss) — 0.7 0.3 1.0Netcurrentperiodothercomprehensiveincome(loss) (11.1) (1.7) 1.7 (11.1)

BalanceatMarch31,2015 $ 6.2 $ (2.7) $ (35.3) $ (31.8)Othercomprehensive(loss)incomebeforereclassifications 1.3 0.1 (1.4) —Amountsreclassifiedfromaccumulatedothercomprehensiveincome(loss) — 0.6 0.2 0.8Netcurrentperiodothercomprehensiveincome(loss) 1.3 0.7 (1.2) 0.8

BalanceatJune30,2015 $ 7.5 $ (2.0) $ (36.5) $ (31.0)

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Thefollowingisareconciliationofthereclassificationsoutofaccumulatedothercomprehensiveincome(loss),netoftax,forthethreeandsixmonthsendedJune30,2016:

Three Months Ended June 30, 2016 Six Months EndedJune 30, 2016

(in millions)

Amount Reclassified fromAccumulated Other Comprehensive

Income

Amount Reclassified fromAccumulated Other Comprehensive

Income Recognized Location

Gainsandlossesoncashflowhedges Foreignexchangecontracts $ — $ (0.1) Costofsales

Commoditycontracts (0.3) (1.2) Costofsales

$ (0.3) $ (1.3) Totalbeforetax

0.1 0.5 Taxexpense

$ (0.2) $ (0.8) Netoftax

Amortizationofpensionandpostretirementitems Actuariallosses $ (0.7) $ (1.3) (a)

$ (0.7) $ (1.3) Totalbeforetax

0.3 0.5 Taxbenefit

$ (0.4) $ (0.8) Netoftax

Totalreclassificationsfortheperiod $ (0.6) $ (1.6) Netoftax

Thefollowingisareconciliationofthereclassificationsoutofaccumulatedothercomprehensiveincome(loss),netoftax,forthethreeandsixmonthsendedJune30,2015:

Three Months Ended

June 30, 2015 Six Months EndedJune 30, 2015

(in millions)

Amount Reclassified fromAccumulated Other Comprehensive

Income

Amount Reclassified fromAccumulated Other Comprehensive

Income Recognized Location

Gainsandlossesoncashflowhedges Foreignexchangecontracts $ (0.4) $ (0.9) Costofsales

Commoditycontracts (0.6) (1.2) Costofsales

$ (1.0) $ (2.1) Totalbeforetax

0.4 0.8 Taxexpense

$ (0.6) $ (1.3) Netoftax

Amortizationofpensionandpostretirementitems Actuariallosses $ (0.2) $ (0.5) (a)

$ (0.2) $ (0.5) Totalbeforetax

— — Taxbenefit

$ (0.2) $ (0.5) Netoftax

Totalreclassificationsfortheperiod,netoftax $ (0.8) $ (1.8) Netoftax

(a)Theseothercomprehensiveincome(loss)componentsareincludedinthenetperiodicpensioncost(seeNote16,"EmployeeBenefitPlans,"forfurtherdetails).

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12. Stock-Based Compensation

TheCompany'semployeeshavehistoricallyparticipatedinMTW'sstock-basedcompensationplans.Stock-basedcompensationexpensehasbeenallocatedtotheCompanybasedontheawardsandtermspreviouslygrantedtoitsemployees.UntilconsummationoftheSpin-Off,theCompanycontinuedtoparticipateinMTW'sstock-basedcompensationplansandrecordstock-basedcompensationexpensebasedonthestock-basedawardsgrantedtotheCompany'semployees.

TheCompanyadoptedtheMFS2016OmnibusIncentiveCompensationPlan(the"2016Plan"),underwhichitmakesequity-basedandcash-basedincentiveawardstoattract,retain,focusandmotivateexecutivesandotherselectedemployees,directors,consultantsandadvisors.The2016PlanisintendedtoaccomplishtheseobjectivesbyofferingparticipantstheopportunitytoacquiresharesofMFScommonstock,receivemonetarypaymentsbasedonthevalueofsuchcommonstockorreceiveotherincentivecompensationunderthe2016Plan.Inaddition,the2016Planpermitstheissuanceofawards("ReplacementAwards")inpartialsubstitutionforawardsrelatingtosharesofcommonstockofMTWthatwereoutstandingimmediatelypriortotheSpin-Off.

TheCompany'sCompensationCommitteeadministersthe2016Plan(the"Administrator").The2016PlanauthorizestheAdministratortointerprettheprovisionsofthe2016Plan;prescribe,amendandrescindrulesandregulationsrelatingtothe2016Plan;correctanydefect,supplyanyomission,orreconcileanyinconsistencyinthe2016Plan,anyawardoranyagreementcoveringanaward;andmakeallotherdeterminationsnecessaryoradvisablefortheadministrationofthe2016Plan,ineachcaseinitssolediscretion.

The2016Planpermitsthegrantingofstockoptions(includingincentivestockoptions),stockappreciationrights,restrictedstockawards,restrictedstockunits,performanceshares,performanceunits,annualcashincentives,long-termcashincentives,dividendequivalentunitsandothertypesofstock-basedawards.Underthe2016Plan16.2millionsharesofMFScommonstockhavebeenreservedforissuance,allofwhichmaybeissuedupontheexerciseofincentivestockoptions.Thesenumbersmaybeadjustedintheeventofcertaincorporatetransactionsorothereventsspecifiedinthe2016Plan.

FollowingtheSpin-OffinMarch2016,MFSgrantedlong-termstock-basedincentiveawardsunderthe2016Plantoitsexecutiveofficers.Thelong-termstock-basedincentiveawardsconsistedofstockoptionswith4-yearratablevesting(25%oftheaggregategrantvalueofthelong-termincentiveaward)andperformanceshares(75%oftheaggregategrantvalueofthelong-termincentiveaward)thatwillbeearnedorforfeitedbasedonperformanceasmeasuredbycumulativefullydilutedearningspershareandreturnoninvestedcapitalovera3-yearperformanceperiod.ThedetailsoftheseawardstotheCompany'snamedexecutiveofficerswillbedisclosedasrequiredbyapplicableSECregulationsintheCompany’sproxystatementforitsannualmeetingin2017.

Totalstock-basedcompensationexpensewas$1.8millionand$0.6millionforthethreemonthsendedJune30,2016and2015,respectively.ThethreemonthsendedJune30,2016alsoincluded$0.3millionofadditionalseparationexpenserecordedasaresultofthemodificationofcertainMTWrestrictedstockunitawardstopayoutattargetuponconsummationoftheSpin-Off.Totalstock-basedcompensationexpensewas$2.6millionand$1.6millionforthesixmonthsendedJune30,2016and2015,respectively.ThesixmonthsendedJune30,2016alsoincluded$0.8millionofadditionalseparationexpenserecordedasaresultofthemodificationofcertainMTWrestrictedstockunitawardstopayoutattargetuponconsummationoftheSpin-Off.

TheCompanyrecognizesstock-basedcompensationexpenseoverthestock-basedawards’vestingperiod.

TheCompanygrantedoptionstoacquire0.3millionand0.1millionsharesofcommonstocktoemployeesduringthesixmonthsendedJune30,2016and2015,respectively.Inaddition,theCompanyissuedatotalof0.3millionrestrictedstockunitstoemployeesanddirectorsduringthesixmonthsendedJune30,2016,and0.2millionrestrictedstockunitstoemployeesanddirectorsduringthesixmonthsendedJune30,2015.Therestrictedstockunitsgrantedtoemployeesin2015and2016vestonthethirdanniversaryofthegrantdate.Therestrictedstockunitsgrantedtodirectorsin2015vestonthesecondanniversaryofthegrantdate.

13. Contingencies and Significant Estimates

AsofJune30,2016,theCompanyheldreservesforenvironmentalmattersrelatedtocertainlocationsofapproximately$0.3million.AtcertainoftheCompany'sotherfacilities,ithasidentifiedpotentialcontaminantsinsoilandgroundwater.Theultimatecostofanyremediationrequiredwilldependupontheresultsoffutureinvestigation.Baseduponavailableinformation,theCompanydoesnotexpecttheultimatecostsatanyoftheselocationswillhaveamaterialadverseeffectonitsfinancialcondition,resultsofoperations,orcashflowsindividuallyorintheaggregate.

TheCompanybelievesthatithasobtainedandisinsubstantialcompliancewiththosematerialenvironmentalpermitsandapprovalsnecessarytoconductitsvariousbusinesses.Basedonthefactspresentlyknown,itdoesnotexpectenvironmentalcompliancecoststohaveamaterialadverseeffectonitsfinancialcondition,resultsofoperations,orcashflows.

AsofJune30,2016,variousproduct-relatedlawsuitswerepending.Totheextentpermittedunderapplicablelaw,alloftheseareinsuredwithself-insuranceretentionlevels.TheCompany'sself-insuranceretentionlevelsvarybybusiness,andhavefluctuatedoverthelast10years.TherangeoftheCompany'sself-insuredretentionlevelsis$0.1millionto$0.3millionperoccurrence.AsofJune30,2016,thelargestself-insuredretentionlevelfornewoccurrencescurrentlymaintainedbytheCompanywas$0.3millionperoccurrenceandappliedtoproductliabilityclaimsforthehotcategoryproductsmanufacturedintheUnitedStates.

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Productliabilityreservesintheconsolidated(condensed)balancesheetsatJune30,2016andDecember31,2015were$3.1millionand$2.6million,respectively;$1.2millionand$0.9million,respectively,wasreservedspecificallyforactualcases,and$1.9millionand$1.7million,respectively,forclaimsincurredbutnotreported,whichwereestimatedusingactuarialmethods.BasedontheCompany'sexperienceindefendingproductliabilityclaims,managementbelievesthecurrentreservesareadequateforestimatedcaseresolutionsonaggregateself-insuredclaimsandinsuredclaims.Anyrecoveriesfrominsurancecarriersaredependentuponthelegalsufficiencyofclaimsandsolvencyofinsurancecarriers.

AtJune30,2016andDecember31,2015,theCompanyhadreserved$31.1millionand$34.3million,respectively,forwarrantyclaimsincludedinproductwarrantiesandothernon-currentliabilitiesintheconsolidated(condensed)balancesheets.Certainofthesewarrantyandotherrelatedclaimsinvolvemattersindisputethatultimatelyareresolvedbynegotiations,arbitration,orlitigation.SeeNote14,“ProductWarranties,”forfurtherinformation.

Itisreasonablypossiblethattheestimatesforenvironmentalremediation,productliabilityandwarrantycostsmaychangeinthenearfuturebaseduponnewinformationthatmayariseormattersthatarebeyondthescopeofitshistoricalexperience.Presently,therearenoreliablemethodstoestimatetheamountofanysuchpotentialchanges.

TheCompanyisalsoinvolvedinvariouslegalactionsarisingoutofthenormalcourseofbusiness,which,takingintoaccounttheliabilitiesaccruedandlegalcounsel’sevaluationofsuchactions,intheopinionofmanagement,theultimateresolutionofallmattersisnotexpectedtohaveamaterialadverseeffectontheCompany'sfinancialcondition,resultsofoperations,orcashflows.

14. Product Warranties

Inthenormalcourseofbusiness,theCompanyprovidesitscustomersproductwarrantiescoveringworkmanship,andinsomecasesmaterials,onproductsmanufacturedbytheCompany.Suchproductwarrantiesgenerallyprovidethatproductswillbefreefromdefectsforperiodsrangingfrom12monthsto60monthswithcertainequipmenthavinglonger-termwarranties.IfaproductfailstocomplywiththeCompany'swarranty,theCompanymaybeobligated,atitsexpense,tocorrectanydefectbyrepairingorreplacingsuchdefectiveproducts.TheCompanyprovidesforanestimateofcoststhatmaybeincurredunderitswarrantyatthetimeproductrevenueisrecognized.Thesecostsprimarilyincludelaborandmaterials,asnecessary,associatedwithrepairorreplacement.Theprimaryfactorsthataffectitswarrantyliabilityincludethenumberofunitsshippedandhistoricalandanticipatedwarrantyclaims.Asthesefactorsareimpactedbyactualexperienceandfutureexpectations,theCompanyassessestheadequacyofitsrecordedwarrantyliabilityandadjuststheamountsasnecessary.

BelowisatablesummarizingtheproductwarrantiesactivityforthesixmonthsendedJune30,2016andforthetwelvemonthsendedDecember31,2015:

June 30, December 31,

(in millions) 2016 2015

Balanceatthebeginningoftheperiod $ 40.0 $ 42.0

Accrualsforwarrantiesissued 12.3 24.2

Settlementsmade(incashorinkind) (15.5) (25.2)

Currencytranslationimpact (0.2) (1.0)

Balanceattheendoftheperiod $ 36.6 $ 40.0

TheCompanyalsooffersextendedwarranties,whicharerecordedasdeferredrevenueandareamortizedtoincomeonastraight-linebasisoveraperiodequaltothatofthewarrantyperiod.Thedeferredrevenueonwarrantiesincludedinothercurrentandnon-currentliabilitiesatJune30,2016andDecember31,2015,was$5.5millionand$5.7million,respectively.Removingdeferredrevenuefromtheendingbalancesdetailedabove,thetotalamountofproductwarrantiesatJune30,2016andDecember31,2015,was$31.1millionand$34.3million,respectively.

15. Restructuring

InconjunctionwiththeacquisitionofEnodisinOctober2008,certainrestructuringactivitieswereundertakentorecognizecostsynergiesandrationalizethenewcoststructureoftheCompany.TherestructuringreservebalanceasofJune30,2016andDecember31,2015,includescertainofthesecosts,includingapensionwithdrawalliability,whicharerecordedinaccruedexpensesandotherliabilitiesandotherlong-termliabilitiesintheconsolidated(condensed)balancesheets.TheCompanyrecordedadditionalamountsin2016primarilyrelatedtothepensionwithdrawalliability.TheCompanyrecordedadditionalamountsin2015primarilyrelatedtoacompany-widereductioninforceandtheproposedclosingoftheClevelandfacility.

ThefollowingisarollforwardofallrestructuringactivitiesforthesixmonthsendedJune30,2016(inmillions):

Restructuring ReserveBalance as of

December 31, 2015 Restructuring

Charges Use of Reserve

Restructuring ReserveBalance as ofJune 30, 2016

$ 16.8 $ 1.6 $ (2.2) $ 16.2

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16. Employee Benefit Plans

TheCompanymaintainsseveraldifferentretirementplansforitsoperationsintheUnitedStates,EuropeandAsia.ThisfootnotedescribesthoseretirementplansthataremaintainedfortheCompany'sUS-basedemployees.ThecurrentplansarebasedlargelyuponbenefitplansthatMTWmaintainedpriortotheSpin-Off.TheCompanyhasestablishedaRetirementPlanCommitteetomanagetheoperationsandadministrationofallretirementplansandrelatedtrusts.

Defined Benefit Plans

PriortoDecember31,2015,MTWmaintainedtwodefinedbenefitpensionplansforitseligibleemployeesandretirees:(1)TheManitowocCompany,Inc.PensionPlan(the“MTWPension”);and(2)TheManitowocCompany,Inc.SupplementalExecutiveRetirementPlan(the“MTWSERP”).TheMTWPensionPlanandtheMTWSERP(together,the“MTWDBPlans”)coveredeligibleemployeesofMTW,includingMTW’sCranesbusinessandfoodservicebusiness.TheMTWPensionPlanisfrozentonewparticipantsandfuturebenefitaccruals.

EffectiveJanuary1,2016,aportionofeachMTWDBPlanwasspunofftocreateseparateplansforMTW’sFoodservicebusiness:(1)theManitowocFoodservicePensionPlan(the“MFSPensionPlan”);and(2)theManitowocFoodserviceSupplementalExecutiveRetirementPlan(the“MFSSERP”).TheMFSPensionPlanandtheMFSSERP(together,the“MFSDBPlans”)wereinitiallysponsoredbyManitowocFSGU.S.Holding,LLC.MFSassumedsponsorshipoftheMFSDBPensionPlansonMarch4,2016.MFSnolongerparticipatesintheMTWDBPlans.TheMFSDBPlansaresubstantiallysimilartotheformerMTWDBPlans.

Whencomparingthecurrentfinancialinformationtofinancialstatementsforprioryears,itisimportanttodistinguishbetween:(1)thedefinedbenefitplanthatalsocoveredemployeesofMTWandotherMTWsubsidiaries(the“SharedPlans”);and(2)thedefinedbenefitplanswhicharesponsoreddirectlybyMFSoritssubsidiariesandofferedonlytoMFSemployeesorretirees(the“DirectPlans”).

MFSaccountedfortheSharedPlansforthepurposeoftheconsolidated(condensed)financialstatementsasamultiemployerplan.Accordingly,MFSdidnotrecordanassetorliabilitytorecognizethefundedstatusoftheSharedPlans.However,thecostsassociatedwiththeseSharedPlansof$0.1millionand$0.8millionforthesixmonthsendedJune30,2016and2015,respectively,arereflectedontheMFSconsolidated(condensed)statementofoperations.ThisexpensereflectsanapproximationofMFS’portionofthecostsoftheSharedPlansaswellascostsattributabletoMTWcorporateemployees,whichhavebeenallocatedtotheMFSconsolidated(condensed)statementofoperationsbasedonmethodologydeemedreasonablebymanagement.

DuringthesixmonthsendedJune30,2016,MFSassumedcertainpensionobligationsof$55.6millionandrelatedplanassetsof$34.1million,andcertainpostretirementhealthobligationsof$6.8million,tonewly-createdsingleemployerplansforMFSemployeesandcertainotherMTW-sponsoredpensionplans,asdescribedabove.Thisnettransferofapproximately$28.3millionwastreatedasanon-cashtransactionbetweentheCompanyandMTW.TheCompanyalsoassumedafter-taxdeferredgainsof$6.1millionrelatedtotheseplans,whichwererecordedinAOCI.

TheDirectPlansareaccountedforasdefinedbenefitplans.Accordingly,thefundedandunfundedpositionofeachDirectPlanisrecordedinMFSconsolidated(condensed)balancesheetsandtheincomeandexpensesrecordedintheconsolidated(condensed)statementsofoperations.Actuarialgainsandlossesthathavenotyetbeenrecognizedthroughincomearerecordedinaccumulatedothercomprehensive(loss)incomenetoftaxesuntiltheyareamortizedasacomponentofnetperiodicbenefitcost.ThedeterminationofbenefitobligationsandtherecognitionofexpensesrelatedtotheDirectPlansaredependentonvariousassumptions.Themajorassumptionsprimarilyrelatetodiscountrates,long-termexpectedratesofreturnonplanassets,andfuturecompensationincreases.Managementdevelopseachassumptionusingrelevantcompanyexperienceinconjunctionwithmarket-relateddataforeachindividualcountryinwhichsuchplansexist.

ThecomponentsofperiodicbenefitcostsfortheDirectPlansforthethreeandsixmonthsendedJune30,2016and2015areasfollows:

Three Months Ended

June 30, 2016 Six Months EndedJune 30, 2016

(in millions) Pension Plans

PostretirementHealth andOther Plans Pension Plans

PostretirementHealth andOther Plans

Servicecost-benefitsearnedduringtheperiod $ 0.1 $ — $ 0.1 $ —

Interestcostofprojectedbenefitobligations 2.1 0.1 4.3 0.2

Expectedreturnonplanassets (1.6) — (3.2) —

Amortizationofactuarialnetloss 0.7 — 1.3 —

Netperiodicbenefitcosts $ 1.3 $ 0.1 $ 2.5 $ 0.2

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Three Months Ended

June 30, 2015 Six Months EndedJune 30, 2015

(in millions) Pension Plans

PostretirementHealth andOther Plans Pension Plans

PostretirementHealth andOther Plans

Servicecost-benefitsearnedduringtheperiod $ 0.1 $ — $ 0.2 $ —

Interestcostofprojectedbenefitobligations 1.6 0.1 3.2 0.1

Expectedreturnonplanassets (1.4) — (2.7) —

Amortizationofactuarialnetloss 0.3 — 0.6 —

Netperiodicbenefitcosts $ 0.6 $ 0.1 $ 1.3 $ 0.1

Defined Contribution Plans

PriortoDecember31,2015,MTWmaintainedthreedefinedcontributionretirementplansforitseligibleemployeesandretirees:(1)TheManitowocCompany,Inc.401(k)RetirementPlan(the“MTW401(k)RetirementPlan”);(2)TheManitowocCompany,Inc.RetirementSavingsPlan(the“MTWRetirementSavingsPlan”);and(3)TheManitowocCompany,Inc.DeferredCompensationPlan(the“MTWDeferredCompensationPlan”).TheMTW401(k)RetirementPlan,theMTWRetirementSavingsPlanandtheMTWDeferredCompensationPlan(together,the“MTWDCPlans”)coveredeligibleemployeesofMTW,includingMTW’sCranesbusinessandFoodservicebusiness.

EffectiveJanuary1,2016,aportionofeachMTWDCPlanwasspunofftocreateseparateplansforMTW’sFoodservicebusiness:(1)theManitowocFoodservice401(k)RetirementPlan(the“MFS401(k)RetirementPlan”);(2)theManitowocFoodserviceRetirementSavingsPlan(the“MFSRetirementSavingsPlan”);and(3)theManitowocFoodserviceDeferredCompensationPlan(the“MFSDeferredCompensationPlan”).TheMFS401(k)RetirementPlan,theMFSRetirementSavingsPlanandtheMFSDeferredCompensationPlan(together,the“MFSDCPlans”)wereinitiallysponsoredbyManitowocFSGU.S.Holding,LLC.MFSassumedsponsorshipoftheMFSDCPensionPlansonMarch4,2016.MFSnolongerparticipatesintheMTWDCPlans.TheMFSDCPlansaresubstantiallysimilartotheformerMTWDBPlans.

TheMTWDCPlansandtheMFSDCPlansresultinindividualparticipantbalancesthatreflectacombinationofamountscontributedbyMTW/MFSordeferredbytheparticipant,amountsinvestedatthedirectionofeitherthecompanyortheparticipant,andthecontinuingreinvestmentofreturnsuntiltheaccountsaredistributed.

17. Business Segments 

TheCompanyidentifiesitssegmentsusingthe“managementapproach,”whichdesignatestheinternalorganizationthatisusedbymanagementformakingoperatingdecisionsandassessingperformanceasthesourceofMFS’reportablesegments.Managementorganizesthebusinessbasedongeography,andhasdesignatedtheregionsAmericas,EMEA,andAPACasreportablesegments.

TheaccountingpoliciesofthesegmentsarethesameasthosedescribedinthesummaryofaccountingpoliciesexceptthatcertaincorporatelevelexpenseswerenotallocatedtothesegmentsfortheperiodspriortotheSpin-Off.Theseunallocatedexpensesarecorporateoverhead,stock-basedcompensationexpense,amortizationexpenseofintangibleassetswithdefinitelives,restructuringexpense,andothernon-operatingexpenses.MFSevaluatessegmentperformancebaseduponearningsbeforeinterest,taxes,other(income)expenseandamortization(OperatingEBITA)beforetheaforementionedexpenses.FinancialinformationrelatingtotheCompany’sreportablesegmentsforthethreeandsixmonthsendedJune30,2016and2015isasfollows:

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Three months ended June 30, Six months ended June 30,

(in millions) 2016 2015 2016 2015

Net sales: Americas $ 301.2 $ 346.7 $ 564.8 $ 640.4

EMEA 76.3 75.8 144.9 146.0

APAC 43.1 45.6 82.0 86.9

Eliminationofintersegmentsales (52.2) (60.4) (97.8) (120.2)

Totalnetsales $ 368.4 $ 407.7 $ 693.9 $ 753.1

Earnings before interest, taxes, other (income) expense and amortization(Operating EBITA): Netearnings $ 15.1 $ 36.9 $ 33.2 $ 50.9

Incometaxes 4.1 17.0 8.7 23.5

Other(income)expense-net 3.6 (0.2) 6.0 (0.6)

Interest(income)expenseonnoteswithMTW-net — (4.6) 0.1 (9.3)

Interestexpense 27.0 0.4 35.5 0.7

Earningsfromoperations 49.8 49.5 83.5 65.2

Amortizationexpense 7.9 7.9 15.7 15.7Earningsbeforeinterest,taxes,other(income)expenseandamortization(OperatingEBITA) $ 57.7 $ 57.4 $ 99.2 $ 80.9

Earnings before interest, taxes, other (income) expense and amortization(Operating EBITA) by segment: Americas $ 55.0 $ 51.7 $ 101.7 $ 79.7

EMEA 10.1 6.8 16.9 10.5

APAC 4.2 6.2 7.3 10.2

Corporateandunallocated (11.6) (7.3) (26.7) (19.5)Totalearningsbeforeinterest,taxes,other(income)expenseandamortization(OperatingEBITA) $ 57.7 $ 57.4 $ 99.2 $ 80.9

Operating EBITA % by segment (1) : Americas 18.3% 14.9% 18.0% 12.4%

EMEA 13.2% 9.0% 11.7% 7.2%

APAC 9.7% 13.6% 8.9% 11.7%(1)OperatingEBITA%inthesectionaboveiscalculatedbydividingthedollaramountofOperatingEBITAbynetsales.

Net sales by geographic area (2)  : UnitedStates $ 244.1 $ 281.2 $ 456.2 $ 516.4

OtherAmericas 24.0 26.9 47.0 51.0

EMEA 63.6 61.5 120.8 114.8

APAC 36.7 38.1 69.9 70.9

Totalnetsalesbygeographicarea: $ 368.4 $ 407.7 $ 693.9 $ 753.1

(2)Netsalesinthesectionaboveareattributedtogeographicregionsbasedonlocationofcustomer.

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AsofJune30,2016andDecember31,2015,totalassetsbysegmentwereasfollows:

(in millions) June 30, 2016 December 31, 2015

Total assets by segment: Americas $ 1,441.9 $ 1,495.2

EMEA 160.1 148.5

APAC 138.7 96.5

Corporate 66.3 13.8

Total $ 1,807.0 $ 1,754.0

18. Net Parent Company Investment and Related Party Transactions

Related Party Transactions and Cash Management Prior to the Spin-Off : MFSdoesnotenterintotransactionswithrelatedpartiestopurchaseand/orsellgoodsorservicesintheordinarycourseofbusiness.TransactionsbetweenMFSandMTWarereflectedinNetParentCompanyInvestmentintheconsolidated(condensed)balancesheetsandintheconsolidated(condensed)statementsofcashflowsasafinancingactivityin“NettransactionswithMTW”.PriortotheSpin-Off,MFSparticipatedinMTW’scentralizedcashmanagementprograminwhichcashwasswepteachdayandheldinacentralizedaccountatthecorporatelevel.

Net Parent Company Investment and Corporate Cost Allocations Prior to the Spin-Off :PriortotheSpin-Off,MTWperformedcertaingeneralandcorporatefunctionsonMFS’behalf.Therelatedcostsincluded,butwerenotlimitedto,accounting,treasury,tax,legal,humanresources,audit,andinformationtechnology(“generalcorporateexpenses”).ForpurposesofpreparingthecombinedfinancialstatementsforperiodspriortotheSpin-Offthesecostswereallocatedonabasisofdirectusage,whereidentifiable,orthroughtheuseofallocationmethodologiesbasedonpercentageofsales,headcount,orothermethodologiesdeemedappropriatebymanagement.Thesegeneralcorporateexpenseswereincludedwithin“Selling,generalandadministrative”costsandNetParentCompanyInvestment,accordingly.Managementbelievestheassumptionsassociatedwithallocatingthesecostsarereasonable.Nevertheless,thecombinedfinancialstatementsmaynotincludealloftheactualexpensethatwouldhavebeenincurredandmaynotrepresentMFS’resultsofoperations,financialposition,orcashflowshaditbeenastand-alonecompanyduringtheperiodspriortotheSpin-Off.ActualcoststhatwouldhavebeenincurredifMFShadbeenastandalonecompanywoulddependonmultiplefactors,includingorganizationalstructureandstrategicdecisionsmadeinvariousareas,includinginformationtechnologyandinfrastructure.GeneralcorporateexpensesallocatedtoMFSduringthethreeandsixmonthsendedJune30,2016,and2015were$0.0millionand$5.2millionand$1.6millionand$13.1million,respectively.

NoneofMTW’sdebthasbeenreflectedintheconsolidated(condensed)balancesheetofMFSasofDecember31,2015,becauseMFSwasnotapartytotheobligationsbetweenMTWandthedebtholders.NofinancingcostsorinterestexpenseassociatedwithMTW'sdebthasbeenallocatedtotheconsolidated(condensed)financialstatementsforperiodspriortotheSpin-Off.

AllsignificantintercompanytransactionsbetweenMFSandMTW,havebeenincludedwithinNetParentCompanyInvestmentintheconsolidated(condensed)balancesheetrelatedtotheperiodendedDecember31,2015.Thetotaleffectofthesettlementoftheseintercompanytransactionsisreflectedasafinancingactivityintheconsolidated(condensed)statementsofcashflows.However,theinterestincomeandexpenserelatedtothenoteswithMTWispresentedonanetbasisintheconsolidated(condensed)statementsofoperations.TherewasnointerestincomeonthenoteswithMTWduringthethreeandsixmonthsendedJune30,2016.InterestincomeonthenoteswithMTWwas$4.6millionand$9.3millionforthethreeandsixmonthsendedJune30,2015,respectively.InterestexpenseonthenoteswithMTWwas$0.1millionforthesixmonthsendedJune30,2016.TherewasnointerestexpenseonthenoteswithMTWduringthesixmonthsendedJune30,2015.

ThenotesreceivablebalancefromMTWasoftheyearendedDecember31,2015was$70.8million.ThenotespayablebalancetoMTWasoftheyearendedDecember31,2015was$9.9million.

Guarantees Prior to the Spin-Off: CertainofMTW’ssubsidiaries,whichincludesselectedentitiesthatarepartofMFS,enteredintoguaranteeagreementswithMTW'slenderswherebythesesubsidiariesguaranteedtheobligationsunder,and/orpledgedtheirassetsascollateral,withrespecttosuchMTWdebt.However,noneoftheseMFSsubsidiarieswerenamedasobligorsinthedebtagreementsheldinthenameofMTW.Forthatreason,MTWdidnothistoricallyallocatedebtbalancesand/orchargeoutthird-partydebtrelatedexpensestoMFS.

Post Spin-Off Activity: InconnectionwiththeSpin-Off,theCompanyenteredintoaseriesofagreementswithMTWwhichareintendedtogoverntherelationshipbetweenMFSandMTWandtofacilitateanorderlyseparationofMFSfromMTW.TheseagreementsincludeaMasterSeparationandDistributionAgreement("SeparationAgreement"),TransitionServicesAgreement("TSA"),EmployeeMattersAgreement,IntellectualPropertyMattersAgreement,andTaxMattersAgreement.

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InaccordancewiththeSeparationAgreement,atthetimeoftheSpin-Off,MTWcontributeditsnetinvestmentinMFSandcertainassetsandliabilitiesinexchangefora$1,362.0millioncashdistributionwhichwasfundedthroughthelong-termdebtincurredbyMFS.Inaddition,separationrelatedadjustmentsareincludedinadditionalpaid-incapital(deficit)ontheconsolidated(condensed)balancesheetconsistingofnetliabilitiesassumedbyMFSrelatedtothepensionplansof$21.5million,post-retirementmedicalobligationsof$6.8million,incometaxespayableof$0.6millionand$47.4millionofothercomprehensiveincomerelatedtopensionandcurrencytranslation,netoftax.

TheSeparationAgreementincludedprovisionsontheallocationofassetsandliabilitiesbetweenlegalentitiesthatwerebeingsplitintoaseparateMTWandMFSlegalentityaspartoftheSpin-Off.TheSeparationAgreementalsoincludedprovisionsonthesplitofjointadministrativecoststhatwereincurredpostSpin-Off.

UndertheTSA,MFSandMTWwillprovideeachothercertainspecifiedservicesonatransitionalbasis,including,amongothers,payrollandotherhumanresourceservices,informationsystems,insurance,legal,financeandothercorporateservices,aswellasprocurementandsourcingsupport.Thechargesforthetransitionservicesaregenerallyintendedtoallowtheprovidingcompanytofullyrecovertheallocateddirectcostsofprovidingtheservices,plusallout-of-pocketcostsandexpenses,generallywithoutprofitexceptwhererequiredbylocallaw.MFSanticipatesthatitwillgenerallybeinapositiontocompletethetransitionofmostservicesonorbefore24monthsfollowingthedateoftheSpin-Off.TheexpensesrelatedtotheTSAthroughJune30,2016wereimmaterial.

19. Earnings Per Share

OnMarch4,2016,MTWdistributed137.0millionsharesofMFScommonstocktoMTWshareholders,therebycompletingtheSpin-Off.BasicanddilutedearningspercommonshareandtheaveragenumberofcommonsharesoutstandingwereretrospectivelyrestatedforthenumberofMFSsharesoutstandingimmediatelyfollowingthistransaction.Thesamenumberofshareswereusedtocalculatebasicanddilutedearningspershare,forthepriorperiodspresented,sincenoequityawardswereoutstandingpriortotheSpin-Off.

Thefollowingisareconciliationoftheaveragesharesoutstandingusedtocomputebasicanddilutedearningspershare.

Three Months Ended

June 30, Six Months Ended

June 30,

  2016 2015 2016 2015

Basicweightedaveragecommonsharesoutstanding 137,131,572 137,016,712 137,105,290 137,016,712

Effectofdilutivesecurities 1,242,807 — 1,250,923 —

Dilutedweightedaveragecommonsharesoutstanding 138,374,379 137,016,712 138,356,213 137,016,712

ForthethreeandsixmonthsendedJune30,2016,3.5millionofcommonsharesissuableupontheexerciseofstockoptionswereanti-dilutiveandwereexcludedfromthecalculationofdilutedshares.

OnMarch3,2016,priortothecompletionoftheSpin-Off,MFSpaidaone-timecashdividendtoMTWofapproximately$1.362billion.MFSdidnotdeclareorpayanyotherdividendstoitsstockholdersduringthethreeorsixmonthsendedJune30,2016orJune30,2015,respectively.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations for the Three and Six Months Ended June 30, 2016 and June 30, 2015

Analysis of Net Sales

Thefollowingtablepresentsnetsalesbybusinesssegment:

Three Months Ended June 30,

Percent Change 

Fav / (Unfav)

Percent of Sales

(in millions) 2016 2015 2016 2015

Netsales: Americas $ 301.2 $ 346.7 (13.1)% 81.8% 85.0%

EMEA 76.3 75.8 0.7% 20.7% 18.6%

APAC 43.1 45.6 (5.5)% 11.6% 11.2%

Eliminationofinter-segmentsales (52.2) (60.4) (13.6)% (14.1)% (14.8)%

Netsales $ 368.4 $ 407.7 (9.6)% 100.0% 100.0%

Six Months Ended June 30,

Dollars of Sales Percent Change 

Fav / (Unfav)

Percent of Sales

(in millions) 2016 2015 2016 2015

Netsales: Americas $ 564.8 $ 640.4 (11.8)% 81.4% 85.0%

EMEA 144.9 146.0 (0.8)% 20.9% 19.4%

APAC 82.0 86.9 (5.6)% 11.8% 11.5%

Eliminationofinter-segmentsales (97.8) (120.2) (18.6)% (14.1)% (15.9)%

Netsales $ 693.9 $ 753.1 (7.9)% 100.0% 100.0%

ConsolidatednetsalesforthethreemonthsendedJune30,2016decreasedby9.6percentto$368.4millionfrom$407.7millionforthesameperiodin2015.Thedecreaseinnetsaleswasprincipallydrivenbya13.1percentdecreaseintheAmericassegmentanda5.5percentdecreaseintheAPACsegment,respectively,forthethreemonthsendedJune30,2016comparedtotheprioryearperiod.Prioryearnetsalesforthisperiodincluded$35.1millionfromKysorPanelSystems("KPS"),whichwassoldinDecember2015.Inaddition,foreigncurrencytranslationnegativelyimpacted2016secondquarternetsalesby$5.0millionor1.3percent.

ConsolidatednetsalesforthesixmonthsendedJune30,2016decreasedby7.9percentto$693.9millionfrom$753.1millionforthesameperiodin2015.Thedecreaseinnetsaleswasprincipallydrivenbyan11.8percentdecreaseintheAmericassegmentanda5.6percentdecreaseintheAPACsegment,respectively,forthesixmonthsendedJune30,2016.Prioryearnetsalesforthisperiodincluded$60.5millionfromKPS.Inaddition,foreigncurrencytranslationnegativelyimpactednetsalesforthesixmonthsendedJune30,2016by$11.7million,or1.7percent.

NetsalesintheAmericassegmentforthethreemonthsendedJune30,2016decreased$45.5million,or13.1percent,to$301.2million,comparedto$346.7millionforthesameperiodin2015.ThisdecreasewasprimarilydrivenbythedivestitureofKPSinDecember2015,whichcausedadecreaseofapproximately$35.1million.AdjustedforthedivestitureofKPS,netsalesdecreased$10.4millionfromtheprioryearprimarilydrivenbylowerintersegmentnetsales,whichdecreasedby$5.5million.Thirdpartynetsalesdecreasedby$4.9millionduetolowergrowthinhot-sideproductssalesandtheexpectedseasonalincreaseinicemachinesaleswasslowertomaterializeinthesecondquarterof2016.Thedecreasewaspartiallyoffsetbypricingrealizationfromthe80/20Simplificationinitiative.TheCompany’sSimplificationandRight-Sizinginitiativesinclude80/20,productcosttakeout,leanimplementation,strategicsourcing,manufacturingcapacityreduction,andreductioninworkforce(SimplificationandRight-Sizinginitiatives).Foreigncurrencytranslationhada$2.7millionnegativeimpactonthirdpartynetsalesinthesecondquarterof2016.

NetsalesintheAmericassegmentforthesixmonthsendedJune30,2016decreased$75.6million,or11.8percent,to$564.8million,comparedto$640.4millionforthesameperiodin2015.ThisdecreasewasprimarilydrivenbythedivestitureofKPSinDecember2015,whichcausedadecreaseofapproximately$60.5million.AdjustedforthedivestitureofKPS,netsalesdecreased$15.1millionfromtheprioryearprimarilydrivenbylowerintersegmentnetsales,whichdecreasedby$11.4millionandthirdpartynetsalesdecreasedby$3.7millionduetosoftnessinsalesofhot-sideproductsinthefirstsixmonthsof2016.Thedecreasewaspartiallyoffsetbypricingrealizationfromthe80/20Simplificationinitiative.Foreigncurrencytranslationhada$6.1millionnegativeimpactonthirdpartynetsalesinthesixmonthsendedJune30,2016.

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NetsalesintheEMEAsegmentforthethreemonthsendedJune30,2016increased$0.5million,or0.7percent,to$76.3million,comparedto$75.8millionforthesameperiodin2015.Theincreasewasprincipallydrivenbyincreasedthirdpartynetsalesof$2.1million,partiallyoffsetbya$1.6milliondecreaseinintersegmentnetsales.ThirdpartynetsalesincreasedprimarilyduetostrongsalesofMerrychefhigh-speedovens,improvementinKitchenCaresalesintheregionof$2.3million,andpricingrealizationfromthe80/20Simplificationinitiative.Foreigncurrencytranslationhada$1.4millionnegativeimpactonthirdpartynetsalesinthesecondquarterof2016.

NetsalesintheEMEAregionforthesixmonthsendedJune30,2016decreased$1.1million,or0.8percent,to$144.9million,comparedto$146.0millionforthesameperiodin2015.Thedecreasewasdrivenbylowerintersegmentnetsalesof$7.1million,partiallyoffsetbya$6.0millionincreaseinthirdpartynetsales.ThirdpartynetsalesincreasedprimarilyduetostrongsalesofMerrychefhigh-speedovens,improvementinKitchenCaresalesintheregionof$2.3million,andpricingrealizationfromtheSimplificationandRight-sizinginitiatives.Foreigncurrencytranslationhada$3.7millionnegativeimpactonthirdpartynetsalesinthesixmonthsendedJune30,2016.

NetsalesintheAPACregionforthethreemonthsendedJune30,2016decreased$2.5million,or5.5percent,to$43.1million,comparedto$45.6millionforthesameperiodin2015.Currentyearnetsalesincluded$2.5millionfromtheWelbiltThailandacquisitioninOctober2015.Thirdpartynetsalesdecreased$1.4millionmainlyduetolowerquick-servicerestaurantnewstoreopeningsinChinaandsoftergeneralmarketsalesinthequarter.Netsalesalsodecreased$1.1millionduetolowerintersegmentnetsales.Foreigncurrencytranslationhada$0.9millionnegativeimpactonthirdpartynetsalesinthesecondquarterof2016.

NetsalesintheAPACregionforthesixmonthsendedJune30,2016decreased$4.9million,or5.6percent,to$82.0million,comparedto$86.9millionforthesameperiodin2015.Currentyearnetsalesincluded$4.8millionfromtheWelbiltThailandacquisitioninOctober2015.Thedecreasewasprimarilydrivenbylowerthirdpartynetsalesof$1.0millionandintersegmentnetsales,whichdecreasedby$3.9million.Thirdpartynetsalesdecreasedduetolowerquick-servicerestaurantnewstoreopeningsinChinaandsoftergeneralmarketsales.Foreigncurrencytranslationhada$1.9millionnegativeimpactonthirdpartynetsalesinthesixmonthsendedJune30,2016.

Analysis of Earnings from Operations

Thefollowingtablepresentsearningsfromoperationsbybusinesssegment.

Three Months Ended June 30, Six Months Ended June 30,

Percent Change 

Fav / (Unfav)

Percent Change 

Fav / (Unfav)(in millions) 2016 2015 2016 2015 Earningsfromoperations Americas $ 47.8 $ 44.3 7.9% $ 87.4 $ 65.2 34.0%

EMEA 9.5 6.2 53.2% 15.6 9.3 67.7%

APAC 4.2 6.2 (32.3)% 7.3 10.2 (28.4)%

Corporateandunallocated (11.7) (7.2) 62.5% (26.8) (19.5) 37.4%

Totalearningsfromoperations $ 49.8 $ 49.5 0.6% $ 83.5 $ 65.2 28.1%

ConsolidatedearningsfromoperationsforthethreemonthsendedJune30,2016was$49.8million,anincreaseof$0.3millioncomparedtothe$49.5millionofconsolidatedearningsfromoperationsforthesameperiodin2015.ConsolidatedearningsfromoperationsforthesixmonthsendedJune30,2016was$83.5million,anincreaseof$18.3millioncomparedtothe$65.2millionofconsolidatedearningsfromoperationsforthesameperiodin2015.TheincreaseinconsolidatedearningsfromoperationsforthethreeandsixmonthsendedJune30,2016,comparedtotherespectiveprioryearperiods,wasprincipallydrivenbysavingsfromtheCompany'sSimplificationandRight-Sizinginitiativesofapproximately$13.4millionand$24.0million,respectively,partiallyoffsetbylowerfixedcostabsorptionandhigherincentivecompensation.

ForthethreemonthsendedJune30,2016,comparedtothesameperiodin2015,earningsfromoperationsfortheAmericasregionincreasedby$3.5millionto$47.8milliondespitethedecreaseinnetsales.AdjustedforthedivestitureofKPSof$3.8million,earningsfromoperationsincreasedfromtheprioryearby$7.3million.Theincreaseinearningsfromoperationswasprimarilydrivenby$10.2millionofsavingsfromtheCompany'sSimplificationandRight-Sizinginitiatives,a$3.9millionimprovementinKitchenCareoperationsandoperatingefficiencyimprovements.Theseincreaseswerepartiallyoffsetbylowerfixedcostabsorptionandhigherincentivecompensation.

ForthesixmonthsendedJune30,2016,comparedtothesameperiodin2015,earningsfromoperationsfortheAmericasregionincreasedby$22.2millionto$87.4milliondespitethedecreaseinnetsales.AdjustedforthedivestitureofKPSof$4.9million,earningsfromoperationsincreasedfromtheprioryearby$27.1million.Theincreaseinearningsfromoperationswasprimarilydrivenby$18.6millionofsavingsfromtheCompany'sSimplificationandRight-Sizinginitiatives,an$8.3millionimprovementinKitchenCareoperationsandoperatingefficiencyimprovements.Theseincreaseswerepartiallyoffsetbylowerfixedcostabsorptionandhigherincentivecompensation.

ForthethreemonthsendedJune30,2016,comparedtothesameperiodin2015,earningsfromoperationsfortheEMEAregionincreasedby$3.3millionto$9.5million.Theincreasewasprimarilydrivenbycostsavingsofapproximately$2.5millionfromtheCompany'sSimplificationandRight-Sizinginitiatives,a$2.4millionimprovementinKitchenCareoperations,betterproductmixfromnewproductintroductionsandoperatingefficiencyimprovements.Theseincreaseswerepartiallyoffsetbylowerfixedcostabsorption.

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ForthesixmonthsendedJune30,2016,comparedtothesameperiodin2015,earningsfromoperationsfortheEMEAregionincreasedby$6.3millionto$15.6million.Theincreasewasprimarilydrivenbycostsavingsofapproximately$4.5millionfromtheCompany'sSimplificationandRight-Sizinginitiatives,a$3.5millionimprovementinKitchenCareoperationsintheregion,andoperatingefficiencyimprovements.Theseincreaseswerepartiallyoffsetbylowerfixedcostabsorption.

ForthethreemonthsendedJune30,2016,comparedtothesameperiodin2015,earningsfromoperationsfortheAPACregiondecreasedby$2.0millionto$4.2million.Thedecreasewasprimarilydrivenbythenegativeimpactoflowersalesvolumesonfixedcostabsorption,partiallyoffsetbysavingsfromtheCompany'sSimplificationandRight-Sizinginitiativesof$0.7million.

ForthesixmonthsendedJune30,2016,comparedtothesameperiodin2015,earningsfromoperationsfortheAPACregiondecreasedby$2.9millionto$7.3million.Thedecreasewasprimarilydrivenbythenegativeimpactoflowersalesvolumesonfixedcostabsorption,partiallyoffsetbysavingsfromtheCompany'sSimplificationandRight-Sizinginitiativesof$0.9million,andoperatingefficiencyimprovements.

Totalselling,generalandadministrativeexpensesamountedto$75.4millionforthethreemonthsendedJune30,2016,anincreaseof9.0percentor$6.2millioncomparedtotheprioryearperiod.Theincreasewasprincipallydrivenbya$5.6millionincreaseinexpensesrelatedtoincentivecompensationanda$3.8millionincreaseinresearchanddevelopmentandmarketingandspinrelatedexpenses,partiallyoffsetbytheimpactfromthedivestitureoftheKPSbusinessofapproximately$2.3millionandsavingsfromtheCompany'sSimplificationandRight-Sizinginitiativesofapproximately$1.6million.

Totalselling,generalandadministrativeexpensesamountedto$147.2millionforthesixmonthsendedJune30,2016,adecreaseof2.9percentor$4.4millioncomparedtotheprioryearperiod.ThedecreasewasprincipallydrivenbytheimpactfromthedivestitureoftheKPSbusinessofapproximately$5.0million,savingsfromtheCompany'sSimplificationandRight-Sizinginitiativesofapproximately$3.2millionandcostcontainmentsavingsofapproximately$2.0million.Thesedecreaseswerepartiallyoffsetbya$5.4millionincreaseinincentivecompensationexpenses.

Analysis of Non-Operating Income Statement Items

ForthethreemonthsendedJune30,2016,comparedtothesameperiodin2015,interestexpenseincreasedby$26.6millionto$27.0million.ForthesixmonthsendedJune30,2016,comparedtothesameperiodin2015,interestexpenseincreasedby$34.8millionto$35.5million.Theincreaseininterestexpensewasrelatedto$1,400.0millionoflong-termdebtissuedbytheCompany,asaresultoftheSpin-Off,inthefirstquarterof2016.AssumingtheCompanyonlymakestherequiredminimumpaymentsundertheagreement,theCompany’scashobligationsduetointerestonlong-termdebtwillbe$47.8millionfortheremainderof2016,$95.8millionin2017,$95.8millionin2018,$95.4millionin2019,$95.0millionin2020and$257.9millionthereafter.

Theremainderofnon-operatingcostsforthethreemonthsendedJune30,2016consistedofforeigncurrencygainsandlossesof$2.3millionandamortizationofdeferredfinancingfeesof$1.5million.Theremainderofnon-operatingcostsforthesixmonthsendedJune30,2016consistedofforeigncurrencygainsandlossesof$4.0million,amortizationofdeferredfinancingfeesof$1.9millionandalossondisposalofassetsof$0.2million.

Financial Condition

First Six Months of 2016

CashandcashequivalentsasofJune30,2016totaled$40.7million,anincreaseof$8.7millionfromtheDecember31,2015balanceof$32.0million.Cashflowsprovidedbyoperatingactivitiesforthefirstsixmonthsof2016were$2.2millioncomparedtocashflowsusedforoperatingactivitiesof$10.3millionforthefirstsixmonthsof2015.Theincreaseincashgeneratedfromoperatingactivitiesof$12.5millionwasprimarilyattributabletoasmallerincreaseinoperatingassets,primarilyinventoryandaccountsreceivables,asmallerdecreaseinaccountspayable,andanincreaseinothercurrentandlong-termliabilitiescomparedtotheprioryearperiod.Thesefavorablechangeswerepartiallyoffsetbylowernetearnings,whichismainlyduetotheincreaseininterestexpensein2016.Inventoryincreasedprincipallyduetohighersafetystocklevelstoreducecustomerleadtimesand,temporarily,toensuresatisfactoryleadtimesrelatedtothetransferofproductionfromourCleveland,Ohioplanttothreereceivingplants.

Cashflowsusedforinvestingactivitiesof$6.0millionforthefirstsixmonthsof2016consistedprimarilyofcapitalexpendituresof$6.2million,withthemajorityofthecapitalexpendituresrelatedtofixedassetequipmentpurchases.

Cashflowsprovidedbyfinancingactivitiesof$12.6millionforthefirstsixmonthsof2016consistedprimarilyofproceedsfromnewindebtednesssubsequentlyusedtofundacashdistributiontoMTWaspartoftheSpin-Off,tomake$49.6millionofpaymentsonlong-termdebtandcapitalleases,andtofundworkingcapitalneedsinthefirstsixmonths.

First Six Months of 2015

CashandcashequivalentsbalanceasofJune30,2015totaled$14.8millionadecreaseof$1.7millionfromtheDecember31,2014balanceof$16.5million.Cashflowsusedforoperatingactivitiesforthefirstsixmonthsof2015were$10.3million.Duringthefirstsixmonthsof2015,cashflowsusedforoperationswasprincipallyrelatedtoincreasesinreceivablesandinventoryanddecreasesinaccountspayableduetohigherseasonalworkingcapitalrequirementsinthefirsthalfoftheyear,aswelltheincreasedinventorylevelsinKitchenCareoperationscomparedtotheprioryear.

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Cashflowsusedforinvestingactivitiesof$7.0millionforthefirstsixmonthsof2015consistedofcapitalexpendituresof$6.7million,relatedtofixedassetequipmentpurchases.

Cashflowsprovidedbyfinancingactivitiesof$16.5millionforthefirstsixmonthsof2015consistedprimarilyrelatedtofinancingtransactionswithMTWduringtheperiod.

Liquidity and Capital Resources

Senior Secured Credit Facilities

OnMarch3,2016,theCompanyenteredintoacreditagreement(the"2016CreditAgreement")foranewseniorsecuredrevolvingcreditfacilityinanaggregateprincipalamountof$225.0million(the"RevolvingFacility")andaseniorsecuredTermLoanBfacilityinanaggregateprincipalamountof$975.0million(the"TermLoanBFacility"and,togetherwiththeRevolvingFacility,the"SeniorSecuredCreditFacilities")withJPMorganChaseBank,N.A,asadministrativeagentandcollateralagent,J.P.MorganSecuritiesLLC,GoldmanSachsBankUSA,HSBCSecurities(USA)Inc.,andCitigroupGlobalMarketsInc.,onbehalfofcertainofitsaffiliates,asjointleadarrangersandjointbookrunners,andcertainlenders,aslenders.TheRevolvingFacilityincludes(i)a$20.0millionsublimitfortheissuanceoflettersofcreditoncustomaryterms,and(ii)a$40.0millionsublimitforswinglineloansoncustomaryterms.TheCompanyenteredintosecurityandotheragreementsrelatingtothe2016CreditAgreement.

BorrowingsundertheSeniorSecuredCreditFacilitieswillbearinterestatarateperannumequalto,attheoptionofMFS,(i)LIBORplustheapplicablemarginofapproximately4.75%fortermloanssubjecttoa1.00%LIBORfloorand1.50%-2.75%forrevolvingloans,basedonconsolidatedtotalleverage,or(ii)analternatebaserateplustheapplicablemargin,whichwillbe1.00%lowerthanforLIBORloans.

The2016CreditAgreementcontainsfinancialcovenantsincluding(a)aConsolidatedInterestCoverageRatio,whichmeasurestheratioof(i)ConsolidatedEBITDA,asdefinedinthe2016CreditAgreement,to(ii)consolidatedcashinterestexpense,and(b)aConsolidatedTotalLeverageRatio,whichmeasurestheratioof(i)consolidatedindebtednessto(ii)ConsolidatedEBITDAforthemostrecentfourfiscalquarters.ThecurrentcovenantlevelsofthefinancialcovenantsundertheSeniorSecuredCreditFacilityareassetforthbelow:

Fiscal Quarter Ending Consolidated Total Leverage Ratio (less than) Consolidated Interest Coverage Ratio (greater than)March31,2016 6.25:1.00 2.00:1.00June30,2016 6.25:1.00 2.00:1.00

ObligationsoftheCompanyundertheSeniorSecuredCreditFacilitiesarejointlyandseverallyguaranteedbycertainofitsexistingandfuturedirectandindirectlywholly-ownedU.S.subsidiaries(butexcluding(i)unrestrictedsubsidiaries,(ii)immaterialsubsidiaries,and(iii)specialpurposesecuritizationvehicles).

ThereisafirstpriorityperfectedlienonsubstantiallyalloftheassetsandpropertyofMFSandguarantorsandproceedstherefromexcludingcertainexcludedassets.ThelienssecuringtheobligationsoftheCompanyundertheRevolvingFacilityandtheTermLoanBFacilityareparipassu.

Senior Notes

TheCompanyissued9.50%SeniorNotesdue2024inanaggregateprincipalamountof$425.0million(the“SeniorNotes”)underanindenturewithWellsFargoBank,NationalAssociation,astrustee(the“Trustee”).TheSeniorNotesweresoldtoqualifiedinstitutionalbuyerspursuanttoRule144A(andoutsidetheUnitedStatesinrelianceonRegulationS)undertheSecuritiesAct.TheSeniorNotesarefullyandunconditionallyguaranteed,jointlyandseverally,onanunsecuredbasisbyeachoftheCompany’sdomesticrestrictedsubsidiariesthatisaborrowerorguarantorundertheSeniorSecuredCreditFacilities.TheSeniorNotesandthesubsidiaryguaranteesareunsecured,seniorobligations.Thenotesareredeemable,attheCompany'soption,inwholeorinpartfromtimetotime,atanytimepriortoFebruary15,2019,atapriceequalto100%oftheprincipalamountthereofplusa“make-whole”premiumandaccruedbutunpaidinteresttothedateofredemption.Inaddition,theCompanymayredeemthenotesatitsoption,inwholeorinpart,atthefollowingredemptionprices(expressedaspercentagesoftheprincipalamountthereof)ifredeemedduringthe12-monthperiodcommencingonFebruary15oftheyearssetforthbelow:

Year Percentage

2019 107.1%2020 104.8%2021 102.4%2022andthereafter 100.0%

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TheCompanymustgenerallyoffertorepurchasealloftheoutstandingSeniorNotesupontheoccurrenceofcertainspecificchangeofcontroleventsatapurchasepriceequalto101%oftheprincipalamountofSeniorNotespurchasedplusaccruedandunpaidinteresttothedateofpurchase.Theindentureprovidesforcustomaryeventsofdefault.Generally,ifaneventofdefaultoccurs(subjecttocertainexceptions),theTrusteeortheholdersofatleast25%inaggregateprincipalamountofthethen-outstandingSeniorNotesmaydeclarealltheSeniorNotestobedueandpayableimmediately.

OutstandingdebtatJune30,2016andDecember31,2015issummarizedasfollows:

June 30, December 31,

(in millions) 2016 2015

Revolvingcreditfacility $ 32.0 $ —

TermLoanB 950.0 —

SeniorNotesdue2024 425.0 —

Other 3.3 2.7

Totaldebtandcapitalleasesincludingcurrentportion 1,410.3 2.7

Lesscurrentportionandshort-termborrowings (1.4) (0.4)

Lessunamortizeddebtissuancecosts (39.0) —

Totallong-termdebtandcapitalleases $ 1,369.9 $ 2.3

Off-balance sheet arrangements

TheCompany'sdisclosuresconcerningtransactions,arrangementsandotherrelationshipswithuncombinedentitiesorotherpersonsthatarereasonablylikelytomateriallyaffectliquidityortheavailabilityoforrequirementsforcapitalresourcesareasfollows:

• TheCompanydiscloseditsaccountsreceivablesecuritizationarrangementinNote8,"AccountsReceivableSecuritization,"totheconsolidated(condensed)financialstatements.

• TheCompanyleasesvariousassetsunderoperatingleases.ThefutureestimatedpaymentsunderthesearrangementshavenotmateriallychangedsincebeingdisclosedinNote20,"Leases,"totheauditedcombinedfinancialstatementsintheCompany’slatestannualreportonForm10-K.

OnMarch3,2016,theCompanyenteredintoanew$110.0millionaccountsreceivablesecuritizationprogram(the“2016SecuritizationFacility”)withWellsFargoBank,NationalAssociation,aspurchaserandagent,wherebytheCompanywillsellcertainofitsdomestictradeaccountsreceivableandcertainofitsnon-U.S.tradeaccountsreceivabletoawholly-owned,bankruptcy-remote,foreignspecialpurposeentity,whichentity,inturn,willsell,convey,transferandassigntoathird-partyfinancialinstitution(a“Purchaser”),alloftheright,titleandinterestinandtoitspoolofreceivablestothePurchaser.ThePurchaserwillreceiveownershipofthepoolsofreceivables.TheCompany,alongwithcertainofitssubsidiaries,actasservicersofthereceivablesandassuchadminister,collectandotherwiseenforcethereceivables.Theservicerswillbecompensatedfordoingsoontermsthataregenerallyconsistentwithwhatwouldbechargedbyanunrelatedservicer.Asservicers,theywillinitiallyreceivepaymentsmadebyobligorsonthereceivablesbutwillberequiredtoremitthosepaymentsinaccordancewithareceivablespurchaseagreement.ThePurchaserwillhavenorecourseforuncollectiblereceivables.The2016SecuritizationFacilityalsocontainscustomaryaffirmativeandnegativecovenants.Amongotherrestrictions,thesecovenantsrequiretheCompanytomeetspecifiedfinancialtests,whichincludeaConsolidatedInterestCoverageRatioandaConsolidatedTotalLeverageRatiothatarethesameasthecovenantratiosrequiredperthe2016CreditAgreement.

Non-GAAP financial measures

ThissectionincludesfinancialinformationpreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates(GAAP),aswellascertainnon-GAAPfinancialmeasures.Generally,anon-GAAPfinancialmeasureisanumericalmeasureoffinancialperformancethatexcludes(orincludes)amountsthatareincludedin(orexcludedfrom)themostdirectlycomparablemeasurecalculatedandpresentedinaccordancewithGAAP.Thenon-GAAPfinancialmeasuresshouldbeviewedasasupplementto,andnotasubstitutefor,financialmeasurespresentedinaccordancewithGAAP.TheCompany'snon-GAAPmeasuresmaynotbecomparabletosimilarlytitledmeasuresusedbyothercompanies.

TheCompanybelievesthatthesemeasuresarehelpfultoinvestorsinassessingtheCompany'songoingperformanceofitsunderlyingbusinessesbeforetheimpactofspecialitems.Inaddition,thesenon-GAAPmeasuresprovideacomparisontocommonlyusedfinancialmetricswithintheprofessionalinvestingcommunitywhichdonotincludespecialitems.

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AreconciliationofU.S.GAAPfinancialmeasurestonon-GAAPfinancialmeasuresisasfollows:

Three Months Ended Six Months Ended

Millions of dollars June 30,2016

June 30, 2015

June 30,2016

June 30, 2015

Free cash flow Netcashprovidedby(usedfor)operatingactivities $ 25.2 $ (2.6) $ 2.2 $ (10.3)

Netcapitalexpenditures (1.7) (3.5) (6.2) (6.7)

Freecashflow(1) $ 23.5 $ (6.1) $ (4.0) $ (17.0)

(1)Freecashflowrepresentsoperatingcashflowslessproperty,plant,andequipmentadditions.

Adjusted earnings before interest, taxes, other (income) expense andamortization (Adjusted Operating EBITA) Netearnings $ 15.1 $ 36.9 $ 33.2 $ 50.9

Incometaxes 4.1 17.0 8.7 23.5

Other(income)expense,net 3.6 (0.2) 6.0 (0.6)

Interest(income)expenseonnoteswithMTW,net — (4.6) 0.1 (9.3)

Interestexpense 27.0 0.4 35.5 0.7

Restructuring(income)expense 0.3 (0.2) 1.6 0.5

Separationexpense 1.3 0.5 4.3 0.5

Amortizationexpense 7.9 7.9 15.7 15.7Adjustedearningsbeforeinterest,taxes,other(income)expenseandamortization(AdjustedOperatingEBITA) $ 59.3 $ 57.7 $ 105.1 $ 81.9

Adjusted Operating EBITA margin (2) : 16.1% 14.2% 15.1% 10.9%(2)AdjustedOperatingEBITAmargininthesectionaboveiscalculatedbydividingthedollaramountofAdjustedOperatingEBITAbynetsales.

Adjusted net earnings (3) Netearnings $ 15.1 $ 36.9 $ 33.2 $ 50.9

Restructuringexpense(netoftax) 0.1 (0.2) 1.0 0.3

Separationexpense(netoftax) 0.8 0.3 2.7 0.3

Adjustednetearnings $ 16.0 $ 37.0 $ 36.9 $ 51.5

(3)Adjustednetearningsrepresentsnetearningsbeforetheimpactofcertainitemssuchasrestructuringandseparationcharges.

Adjusted net earnings per share Dilutedearningspershare $ 0.11 $ 0.27 $ 0.24 $ 0.37

Restructuringexpensepershare(netoftax) — — 0.01 —

Separationexpensepershare(netoftax) 0.01 — 0.02 —

Adjustednetearningspershare $ 0.12 $ 0.27 $ 0.27 $ 0.37

Organic net sales and organic net sales in constant currency Netsales $ 368.4 $ 407.7 $ 693.9 $ 753.1

Less:KysorPanelSystemssales — (35.1) — (60.5)

Plus:WelbiltThailandsales 1.6 — 3.8

Organicnetsales 368.4 374.2 693.9 696.4

Foreigncurrencytranslation 5.0 — 11.7 —

Organicnetsalesinconstantcurrency $ 373.4 $ 374.2 $ 705.6 $ 696.4

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Critical Accounting Policies

TheCompany'scriticalaccountingpolicieshavenotmateriallychangedsinceitfileditsAnnualReportonForm10-KfortheyearendedDecember31,2015.

Cautionary Statements about Forward-Looking Information

StatementsinthisreportandinotherCompanycommunicationsthatarenothistoricalfactsareforward-lookingstatements,whicharebasedupontheCompany'scurrentexpectations,withinthemeaningofthePrivateSecuritiesLitigationReformActof1995.

Thesestatementsinvolverisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromwhatappearswithinthisquarterlyreport.

Forward-lookingstatementsincludedescriptionsofplansandobjectivesforfutureoperations,andtheassumptionsbehindthoseplans.Thewords"anticipates,""believes,""intends,""estimates,""targets,""expects,""could,""will,""may"orsimilarexpressions,usuallyidentifyforward-lookingstatements.Anyandallprojectionsoffutureperformanceareforward-lookingstatements.

Inadditiontotheassumptions,uncertainties,andotherinformationreferredtospecificallyintheforward-lookingstatements,anumberoffactorscouldcauseactualresultstobesignificantlydifferentfromwhatispresentedinthisQuarterlyReportonForm10-Q.Thosefactorsinclude,withoutlimitation,thefollowing:

• theimpactoftheCompany'sseparationfromTheManitowocCompany,Inc.andrisksrelatingtoitsabilitytooperateeffectivelyasanindependent,publiclytradedcompany;• efficienciesandcapacityutilizationoffacilities;

• issuesrelatingtotheabilitytotimelyandefficientlyexecuteonmanufacturingstrategies,includingissuesrelatingtonewplantstart-ups,plantclosings,workforcereductionsorramp-ups,and/orconsolidationsofexistingfacilitiesandoperations;

• theCompany'sabilitytoretainitsexecutivemanagementteamandtoattractqualifiednewpersonnel;

• realizationofanticipatedearningsenhancements,costsavings,strategicoptionsandothersynergies,andtheanticipatedtimingtorealizethoseenhancements,savings,synergies,andoptions;

• availabilityofcertainrawmaterials;• growthofgeneralandadministrativeexpenses,includinghealthcareandpostretirementcosts;• changesinrawmaterialprices,commoditypricesandhedgesinplace;• actionsofcompetitors,includingcompetitivepricing;• thesuccessfuldevelopmentofinnovativeproductsandmarketacceptanceofnewandinnovativeproducts;• theabilitytofocusandcapitalizeonproductqualityandreliability;• unanticipatedissuesassociatedwiththequalityofmaterialsandcomponentssourcedfromthirdpartiesandresolutionofthoseissues;

• unanticipatedissuesassociatedwithrefresh/renovationplans,newproductrolloutsand/ornewequipmentbynationalrestaurantaccountsandglobalchains;

• consumerdemandforproductsfromthequick-servicerestaurantchainsandkiosks;• growthindemandforfoodserviceequipmentbycustomersinemergingmarkets;• globalexpansionofcustomers;• changesinthemarketstheCompanyserves;• unanticipatedchangesinconsumerspending;• unfavorableoutcomesinproductliabilitylawsuits,oranincreaseinthevolumeofproductliabilitylawsuits;• unexpectedcostsincurredinprotectingitsintellectualproperty;• weather;• changesindomesticandinternationaleconomicandindustryconditions;• workstoppages,labornegotiations,ratesandtemporarylabor;• theavailabilityoflocalsuppliersandskilledlabor;• unanticipatedchangesincapitalandfinancialmarkets;• changesintheinterestrateenvironment;• pressureoffinancingleverage;• compliancewithdebtcovenantsandmaintenanceofcreditratingsaswellastheimpactofinterestandprincipalrepaymentofitsdebtobligations;• foreigncurrencyfluctuationsandtheirimpactonreportedresultsandhedgesinplace;• unexpectedissuesaffectingitseffectivetaxrate,including,butnotlimitedto,globaltaxpolicies,taxreform,andtaxlegislation;• unanticipatedissuesassociatedwiththeresolutionorsettlementofuncertaintaxpositionsorunfavorableresolutionoftaxaudits;

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• thetaxtreatmentoftheDistributionandtherestrictionsonpost-DistributionactivitiesimposedontheCompanyundertheTaxMattersAgreementwithTheManitowocCompany,Inc.inordertopreservethetax-freetreatmentoftheSpin-Off;

• actionsofactivistshareholders;• costsassociatedwithunanticipatedenvironmentalliabilities;• risksassociatedwithdatasecurityandtechnologysystemsandprotections;• world-widepoliticalrisk;• healthoutbreaksornaturaldisastersdisruptingcommerceinoneormoreregionsoftheworld;• actsofterrorism;• geographicfactorsandeconomicrisks;• changesinlawsandregulations,aswellastheirenforcement,throughouttheworld;• changesinthecostsofcompliancewithlawsregardingtrade,exportcontrolsandforeigncorruptpractices;• foodserviceequipmentreplacementcyclesintheU.S.andothermaturemarkets;

• theabilitytocompeteandappropriatelyintegrate,and/ortransition,restructureandconsolidateacquisitions,divestitures,strategicalliances,jointventuresandotherstrategicalternativesandotherwisecapitalizeonkeystrategicopportunities;

• inconnectionwithacquisitions,divestitures,strategicalliancesandjointventures,thefinalizationofthepriceandotherterms,therealizationofcontingenciesconsistentwithanyestablishedreserves,andunanticipatedissuesassociatedwithtransitionalservices;and

• othereventsoutsidetheCompany'scontrol.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

TheCompany’smarketriskdisclosureshavenotmateriallychangedsinceitsAnnualReportonForm10-K,fortheyearendedDecember31,2015wasfiled.TheCompany’squantitativeandqualitativedisclosuresaboutmarketriskareincorporatedbyreferencefromPartII,Item7AoftheCompany’sAnnualReportonForm10-K,fortheyearendedDecember31,2015.

Item 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

TheCompany’smanagement,withtheparticipationoftheCompany’sChiefExecutiveOfficerandChiefFinancialOfficer,haveevaluatedtheeffectivenessoftheCompany’sdisclosurecontrolsandproceduresassuchtermisdefinedinRules13a-15(e)and15(d)-15(e)undertheSecuritiesExchangeActof1934,asamended(the"ExchangeAct")asoftheendoftheperiodcoveredbythisreport.Basedonsuchevaluation,theCompany’sChiefExecutiveOfficerandChiefFinancialOfficerhaveconcludedthat,asoftheendofsuchperiod,theCompany’sdisclosurecontrolsandproceduresareeffectiveinrecording,processing,summarizing,andreporting,onatimelybasis,informationrequiredtobedisclosedbytheCompanyinthereportsthatitfilesorsubmitsundertheExchangeAct,andthatsuchinformationisaccumulatedandcommunicatedtotheChiefExecutiveOfficerandChiefFinancialOfficer,asappropriate,toallowtimelydiscussionsregardingrequireddisclosure.

Changes in Internal Control Over Financial Reporting

BeforetheSpin-Off,theCompanyreliedoncertainfinancialinformationandresourcesofMTWtomanageaspectsoftheCompany’sbusinessandtoreportfinancialresults.Theseincludedinvestorrelations,corporatecommunications,certainaccounting,tax,legal,humanresources,benefitplanadministration,benefitplanreporting,generalmanagement,realestate,treasury,insuranceandriskmanagement,andoversightfunctions,suchastheBoardofDirectorsandinternalauditwhichincludesSarbanes-Oxleycompliance.InconjunctionwiththeSpin-off,theCompanyenhanceditsownfinancial,administrative,andothersupportsystems.TheCompanyisexpandingitsinternalaccounting,reporting,legal,andinternalauditdepartmentsandupdatingitspoliciesandsystems,asneeded,tomeetallregulatoryrequirementsonastand­alonebasis.TheCompanywillcontinuetoreview,documentandtestitsinternalcontrolsoverfinancialreporting,andmayfromtimetotimemakechangesaimedatenhancingtheireffectivenessandtoensurethatitssystemsevolvewithitsbusiness.Theseeffortsmayleadtochangesinourinternalcontroloverfinancialreporting.

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PART II: OTHER INFORMATION

Item 1A.  RISK FACTORS

Withtheexceptionoftherevisedriskfactorsetforthbelow,therehavebeennomaterialchangesinourriskfactorsfromtheriskfactorsdisclosedintheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2015.

We are exposed to the risk of changes in interest rates or foreign currency fluctuations.

Wehaveindebtednessthataccruesinterestatavariablerate.Increasesininterestrateswillreduceouroperatingcashflowsandcouldhinderourabilitytofundouroperations,capitalexpenditures,acquisitionsordividends.Insuchcaseswemayseektoreduceourexposuretofluctuationsininterestrates,buthedgingourexposurecarriestheriskthatwemayforegothebenefitswewouldotherwiseexperienceifinterestratesweretochangeinourfavor.Developinganeffectivestrategyfordealingwithmovementsininterestratesiscomplex,andnostrategyisguaranteedtocompletelyinsulateusfromtherisksassociatedwithsuchfluctuations.

Additionally,someofouroperationsareormaybeconductedbysubsidiariesinforeigncountries.TheresultsoftheoperationsandthefinancialpositionofthesesubsidiarieswillbereportedintherelevantforeigncurrenciesandthentranslatedintoU.S.dollarsattheapplicableexchangeratesforinclusioninourcombinedfinancialstatements,whicharestatedinU.S.dollars.TheexchangeratesbetweenmanyofthesecurrenciesandtheU.S.dollarhavefluctuatedsignificantlyinrecentyearsandmaycontinuetofluctuatesignificantlyinthefuture.Suchfluctuationsmayhaveamaterialeffectonourresultsofoperationsandfinancialpositionandmaysignificantlyaffectthecomparabilityofourresultsbetweenfinancialperiods.Inparticular,weexpecttherecentweakeningoftheBritishpoundfollowingtheUnitedKingdom'svotetoexittheEuropeanUnion("Brexit")tohavenegativeforeigncurrencytranslationimpactonourStatementsofOperationsfortheremainderofFiscal2016,andsimilarnegativeimpactscouldcontinueinthefuture.

Wealsoincurcurrencytransactionriskwheneveroneofouroperatingsubsidiariesentersintoatransactionusingadifferentcurrencythanitsfunctionalcurrency.Weattempttoreducecurrencytransactionriskwheneveroneofouroperatingsubsidiariesentersintoamaterialtransactionusingadifferentcurrencythanitsfunctionalcurrencyby:

• matchingcashflowsandpaymentsinthesamecurrency;

• directforeigncurrencyborrowing;and

• enteringintoforeignexchangecontractsforhedgingpurposes

However,wemaynotbeabletohedgethisriskcompletelyoratanacceptablecost,whichmayadverselyaffectourresultsofoperations,financialconditionandcashflowsinfutureperiods.

Item 6.  EXHIBITS

SeeexhibitindexfollowingthesignaturepageofthisQuarterlyReportonForm10-Q,whichisincorporatedhereinbyreference.

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SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisReporttobesignedonitsbehalfbythe

undersigned,thereuntodulyauthorized:

Date:August15,2016

Manitowoc Foodservice, Inc.

/s/HubertusM.Muehlhaeuser HubertusM.Muehlhaeuser PresidentandChiefExecutiveOfficer

/s/JohnO.Stewart JohnO.Stewart SeniorVicePresidentandChiefFinancialOfficer

/s/HareshShah HareshShah VicePresidentCorporateControllerandChiefAccountingOfficer

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MANITOWOC FOODSERVICE, INC.EXHIBIT INDEXTO FORM 10-Q

FOR QUARTERLY PERIOD ENDED JUNE 30, 2016

Exhibit No. Description Filed/Furnished

Herewith

10.1 FormofEmploymentAgreement(forJosefMatosevic,MauriceD.JonesandRichardCaron)(filedasExhibit10.1totheCompany’sCurrentReportonForm8-K(FileNo.001-37548),filedonApril28,2016andincorporatedhereinbyreference).

31.1 Rule13a-14(a)/15d-14(a)-ChiefExecutiveOfficerCertification X(1)

31.2 Rule13a-14(a)/15d-14(a)-ChiefFinancialOfficerCertification X(1)

32.1 CertificationofCEOpursuantto18U.S.C.Section1350 X(2)

32.2 CertificationofCFOpursuantto18U.S.C.Section1350 X(2)

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ThefollowingmaterialsfromtheCompany’sQuarterlyReportonForm10-QforthequarterendedJune30,2016formattedinExtensibleBusinessReportingLanguage(XBRL):(i)theConsolidated(Condensed)StatementsofIncome,(ii)theConsolidated(Condensed)StatementsofComprehensiveIncome(iii)theConsolidated(Condensed)BalanceSheets,(iv)theConsolidated(Condensed)StatementsofCashFlowsand(v)relatednotes.

X(1)

(1)Filedherewith

(2)Furnishedherewith

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