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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

GRAPHIC

 

FORM 11-K

 

 

x

Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934

 

 

 

 

 

For the plan year ended December 31, 2011

 

 

 

 

o

Transition Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934

 

 

 

 

 

For the transition period from              to            

 

Commission file number 0-6645

 

A.            Full title of the Plan and the address of the Plan, if different from that of the issuer named below:

 

THE MANITOWOC COMPANY, INC. RETIREMENT SAVINGS PLAN

 

B.            Name of the issuer of securities held pursuant to the plan and the address of it’s principal executive office:

 

THE MANITOWOC COMPANY, INC.

2400 South 44th Street
Manitowoc, WI  54220

 

 

 



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REQUIRED INFORMATION

 

The following financial statement and schedules of The Manitowoc Company, Inc. Retirement Savings Plan, prepared in accordance with the financial reporting requirements of the Employee Retirement Income Securities Act of 1974, as amended, are filed herewith.

 



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The Manitowoc Company, Inc.

 

Retirement Savings Plan

 

Manitowoc, Wisconsin

 

 

 

Financial Statements and Supplemental Schedule

 

Years Ended December 31, 2011 and 2010

 



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Financial Statements and Supplemental Schedule

Years Ended December 31, 2011 and 2010

 

Table of Contents

 

Report of Independent Registered Public Accounting Firm

1

 

 

Financial Statements

 

 

 

Statements of Net Assets Available for Benefits

2

Statements of Changes in Net Assets Available for Benefits

3

Notes to Financial Statements

4

 

 

Supplemental Schedule

 

 

 

Schedule H, Line 4i - Schedule of Assets (Held at End of Year)

22

 



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Report of Independent Registered Public Accounting Firm

 

Plan Administrator

The Manitowoc Company, Inc.

Retirement Savings Plan

Manitowoc, Wisconsin

 

We have audited the accompanying statements of net assets available for benefits of The Manitowoc Company, Inc. Retirement Savings Plan (the “Plan”) as of December 31, 2011 and 2010, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of The Manitowoc Company, Inc. Retirement Savings Plan as of December 31, 2011 and 2010, and the changes in its net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States.

 

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of Schedule H, Line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2011, is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

 

/s/ Wipfli LLP

 

 

 

Wipfli LLP

 

 

 

June 7, 2012

 

Appleton, Wisconsin

 

 

1



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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Statements of Net Assets Available for Benefits

December 31, 2011 and 2010

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Investments - Interest in The Manitowoc Company, Inc. Employees’ Profit Sharing Trust, at fair value

 

$

113,286,675

 

$

128,464,094

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Employer contributions

 

8,477

 

5,953

 

Participant contributions

 

36,883

 

37,335

 

Interest

 

11,760

 

15,113

 

Notes receivable from participants

 

847,116

 

685,551

 

 

 

 

 

 

 

Total receivables

 

904,236

 

743,952

 

 

 

 

 

 

 

Total assets

 

114,190,911

 

129,208,046

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Pending distributions payable

 

34,102

 

39,892

 

 

 

 

 

 

 

Net assets available for benefits, at fair value

 

114,156,809

 

129,168,154

 

 

 

 

 

 

 

Adjustment from fair value to contract value for fully benefit-responsive investment contract held by the Capital Preservation Fund

 

(954,782

)

(390,309

)

 

 

 

 

 

 

Net assets available for benefits

 

$

113,202,027

 

$

128,777,845

 

 

See accompanying notes to financial statements.

 

2



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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Statements of Changes in Net Assets Available for Benefits

Years Ended December 31, 2011 and 2010

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Investment income (loss) - Interest in net appreciation (depreciation) in fair value of The Manitowoc Company, Inc. Employees’ Profit Sharing Trust

 

$

(8,682,383

)

$

15,237,753

 

 

 

 

 

 

 

Interest income on notes receivable from participants

 

34,080

 

40,146

 

 

 

 

 

 

 

Contributions:

 

 

 

 

 

Employer

 

1,007,550

 

433,706

 

Participant

 

2,250,988

 

2,221,037

 

Rollover

 

9,458

 

2,236

 

 

 

 

 

 

 

Total contributions

 

3,267,996

 

2,656,979

 

 

 

 

 

 

 

Transfers from other plan

 

0

 

59,249

 

 

 

 

 

 

 

Deductions:

 

 

 

 

 

Benefits paid to participants

 

9,994,558

 

8,036,463

 

Plan administrative expenses

 

199,484

 

206,350

 

Transfers to other plan

 

1,469

 

0

 

 

 

 

 

 

 

Total deductions

 

10,195,511

 

8,242,813

 

 

 

 

 

 

 

Net increase (decrease) in net assets available for benefits

 

(15,575,818

)

9,751,314

 

Net assets available for benefits at beginning

 

128,777,845

 

119,026,531

 

 

 

 

 

 

 

Net assets available for benefits at end

 

$

113,202,027

 

$

128,777,845

 

 

See accompanying notes to financial statements.

 

3



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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 1                                    Plan Description

 

The following description of The Manitowoc Company, Inc. Retirement Savings Plan (the “Plan”) provides only general information. Participants should refer to the Plan Agreement for a more complete description of the Plan’s provisions.

 

General

 

The Plan is a retirement savings plan under Section 401(k) of the Internal Revenue Code (IRC). The Plan is available to all eligible employees of participating companies of The Manitowoc Company, Inc. (the “Company”). Eligible employees include hourly domestic employees who are covered by a collective bargaining agreement between the participating company and the union representing employees of the participating company.

 

Participating companies in the Plan are collectively bargained employees of Manitowoc Cranes, Inc. and Manitowoc FSG Operations, LLC, which are all wholly owned subsidiaries or divisions of the Company and are eligible to participate when they have completed either a probationary period with a participating company or six months, whichever is shorter.

 

Collectively bargained employees of Lincoln Food Service Products, LLC; Jackson MSC, LLC; Delfield, LLC; Garland Commercial Industries, Inc.; and Cleveland Range, LLC are eligible to participate upon date of hire. These employees are eligible for Company contributions after being employed for one year and having worked 1,000 hours of service. Participants are automatically enrolled after meeting eligibility requirements at a contribution rate of 3% of gross wages.

 

Contributions

 

Participants may elect to contribute from 1% to 75% of eligible compensation up to a maximum contribution allowable under the IRC. The Plan also allows direct rollovers from other qualified plans. Rollovers are not matched.

 

Effective October 3, 2010, the Company reinstated matching contributions. Participants that are employed by Manitowoc Cranes, Inc. who are members of the Boilermakers Union - Local No. 443; Office and Professional Employees International Union Local 9 - AFL-CIO; and International Brotherhood of Electrical Workers - Local 158 received matching contributions at the rate of 12.5% of the first 4% of eligible compensation. Participants that are employed by Manitowoc Cranes, Inc. who are members of Local Lodge 516 of the International Association of Machinist and Aerospace Workers Union AFL-CIO received matching contributions at the rate of 25% on the first 4% of eligible compensation.

 

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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 1                                    Plan Description (Continued)

 

Contributions (Continued)

 

Participants that were employed by Garland Commercial Industries, Inc. who were members of Teamsters Local Union 401 prior to closing in October 2010 and participants who are employed by Cleveland Range, LLC and who are members of International Union United Automobile, Aerospace, and Agricultural Implement Workers of America Local 70, receive a safe harbor matching contribution up to 100% of the first 3% and 50% of the next 2% of a participant’s compensation.  They also receive a fixed profit sharing contribution equal to 2% of participant’s eligible compensation and are eligible for Company discretionary profit sharing contribution.  There was no discretionary profit sharing contribution in 2011 or 2010.  The safe harbor matching contributions, as well as the fixed profit sharing contribution, are subject to a 12-month waiting period.

 

Participants who are employed by Jackson MSC, LLC who are members of United Steelworkers-USW AFL-CIO-CLC, Local 14300 received matching contributions equal to 50% on the first 2% of compensation through July 22, 2010.  Effective July 22, 2010, these employees receive a 50% matching contribution on the first 3% of eligible compensation.  Participants who are employed by Delfield, LLC and are members of United Steelworkers AFL-CIO-CLC, Local 2-585 received matching contributions up to 10% of eligible compensation through June 30, 2010.  Effective July 1, 2010, these employees receive a 50% matching contributions on the first 3% of eligible compensation.

 

Lincoln Food Service Products, LLC participant contributions are not matched.

 

Total annual contributions to a participant’s account are limited to the lesser of 100% of the participant’s compensation for the year or the maximum contribution allowable under the IRC.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

 

Participants’ Accounts

 

All investments in participants’ accounts are participant-directed.  The Plan allows participants to select from a variety of investment options including common/collective trust funds, mutual funds, and a money market fund.

 

5



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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 1                                    Plan Description (Continued)

 

Participants’ Accounts (Continued)

 

Each participant’s account is credited with the participant’s contributions, the Company’s contributions, and an allocation of plan earnings/losses and is reduced for withdrawals and an allocation of investment expenses (based on account balances and participant investment elections).  The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

 

Vesting

 

All employee and rollover contributions and related earnings are 100% vested immediately.  Company contributions for Manitowoc Cranes, Inc. and Manitowoc FSG Operations, LLC vest subject to a six-year graded vesting schedule.  Participants covered by collective bargaining agreements with Cleveland Range, LLC; Delfield, LLC; Garland Commercial Industries, Inc.; and Jackson MSC, LLC are 100% vested immediately in the Company’s matching contribution plus actual earnings/losses thereon.  Vesting in the Company’s profit sharing contributions plus actual earnings/losses thereon is based on years of continuous service.  The Company’s profit sharing contributions vest at the rate of 20% per year beginning with the first year and with 100% vesting after five years of service.  Participants who leave the Company because of normal retirement, disability, or death are considered to be 100% vested.

 

Notes Receivable From Participants

 

In the event of financial hardship as defined by Internal Revenue Service regulations, Manitowoc Cranes, Inc. and Manitowoc FSG Operations, LLC participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their employee and rollover contributions account balance.  The notes are secured by the balance in the participant’s account and bear interest at prime plus 1%.  Interest rates on existing notes range from 4.25% to 9.25%.  Notes are repaid through payroll deductions over a period not to exceed five years.

 

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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 1                                    Plan Description (Continued)

 

Notes Receivable From Participants (Continued)

 

Participants covered by collective bargaining agreements with Cleveland Range, LLC; Delfield, LLC; Garland Commercial Industries, Inc.; Jackson MSC, LLC; and Lincoln Food Service Products, LLC may borrow from their fund accounts.  Notes may be made to the lesser of $50,000 or one-half of vested interest with a $1,000 minimum.  New note terms cannot exceed five years.  The notes are secured by the balance in the participant’s account and bear interest at a rate of 1% over the prime rate at the date of the loan.  Interest rates on existing loans range from 4.25% to 9.25%.  Principal and interest are paid ratably through payroll deductions.

 

Payment of Benefits

 

Plan benefits are available at normal retirement (age 65), disability retirement, death, and termination of employment with vested interests.  Benefits are payable in one lump sum, direct rollover, equal installments over a period of years, or an insurance company single premium nontransferable annuity contract.  Distributions may be made as soon as administratively feasible.

 

Forfeitures

 

At December 31, 2011 and 2010, forfeited nonvested accounts totaled $163,257 and $265,844, respectively.  These accounts will be used to reduce future employer contributions.  Through December 31, 2011, forfeited nonvested accounts could be used to reduce future employer contributions, be reallocated to participants or pay administrative expenses, dependent on the source of the forfeiture.  During 2011 and 2010, $181,459 and $53,153, respectively, were reallocated to participants, while $87,766 and $85,208 were used to reduce future employer contributions.  In addition, during 2011 and 2010, $0 and $86,246, respectively, was used to pay administrative expenses.

 

Transfers To/From Other Plan

 

The Plan and the Company allow participants to transfer account balances between another plan sponsored by the Company when they transfer to a new division or their job status changes (i.e., union versus nonunion).

 

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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 2                                    Summary of Significant Accounting Policies

 

Basis of Accounting

 

The financial statements of the Plan are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (GAAP).

 

Investment contracts held by a defined contribution plan are required to be reported at fair value.  However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the plan.  The statements of net assets available for benefits present the fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value.  The statements of changes in net assets available for benefits are prepared on a contract value basis.

 

Use of Estimates

 

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein and disclosure of contingent assets and liabilities.  Actual results could differ from those estimates.

 

Investment Valuation and Income Recognition

 

The Plan’s investments are commingled with another plan of The Manitowoc Company, Inc. in the Master Trust.  Upon enrollment in the Plan, a participant may direct contributions in 1% increments in any of the defined investment options.

 

Investments are reported at fair value.  Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  See Note 4 for discussion of fair value measurements.

 

Purchases and sales of securities are recorded on a trade-date basis.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.  Net appreciation (depreciation) includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

 

8



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 2                                    Summary of Significant Accounting Policies (Continued)

 

Notes Receivable From Participants

 

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest.  Delinquent participant notes are reclassified as distributions based upon the terms of the Plan document.

 

Pending Distributions Payable

 

Pending distributions payable on the statements of net assets available for benefits include distributions requested prior to year-end, but completed subsequent to year-end.

 

Administrative Expenses

 

Administrative expenses of the Plan are paid from the assets of The Manitowoc Company, Inc. Employees’ Profit Sharing Trust (the “Master Trust”).

 

Subsequent Events

 

Subsequent events have been evaluated through the date the financial statements were issued.

 

Note 3                                    Investments in the Master Trust

 

The Plan’s investments are in the Master Trust which was established for the investment of assets of the Plan and other retirement plans sponsored by The Manitowoc Company, Inc.  Each participating retirement plan has an undivided interest in the Master Trust.  The assets of the Master Trust are held by Marshall & Ilsley Trust Company, N.A. (M&I).

 

The value of the Plan’s interest in the Master Trust is based on the beginning of year value of the Plan’s interest in the Master Trust plus actual contributions and allocated investment income (loss), actual distributions, and allocated administrative expenses.  At December 31, 2011 and 2010, the Plan’s interest in the net assets of the Master Trust was approximately 23% and 24%, respectively.

 

Transfers in and out of the Master Trust and certain administrative expenses are specifically identified with the particular plan.  Investment income (loss) and certain administrative expenses relating to the Master Trust are allocated to the individual plans based on the ratio of the investment balances of the plans.

 

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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 3                                    Investments in the Master Trust (Continued)

 

The Plan’s approximate allocated share of the net assets of each fund in the Master Trust at December 31, is as follows:

 

 

 

2011

 

2010

 

 

 

 

 

 

 

American Beacon International Equity Fund

 

17

%

21

%

American Beacon Large-Cap Value Fund

 

*

 

30

%

American EuroPacific Fund

 

20

%

21

%

Blackrock Equity Dividend Fund

 

27

%

16

%

Buffalo Small-Cap Fund

 

30

%

23

%

Capital Preservation Fund**

 

29

%

30

%

Columbia Acorn Fund

 

20

%

22

%

Columbia Acorn International

 

22

%

24

%

Columbia Mid-Cap Value Opt Fund

 

17

%

18

%

Davis NY Venture Fund

 

19

%

16

%

Fidelity ContraFund

 

23

%

16

%

Fidelity Low-Priced Stock Fund

 

*

 

15

%

Harbor Mid-Cap Growth Fund

 

13

%

13

%

Janus Growth & Income Fund

 

*

 

26

%

Lord Abbett Small-Cap Fund

 

*

 

10

%

Manitowoc Aggressive Growth Fund**

 

22

%

23

%

Manitowoc Conservative Growth Fund**

 

24

%

23

%

Manitowoc Moderate Growth Fund**

 

18

%

20

%

Marshall Prime Money Market Fund

 

44

%

24

%

Oakmark Equity Fund

 

*

 

17

%

PIMCO Funds Total Return Fund

 

10

%

10

%

Ridgeworth Classic Small Cap Value Equity Fund

 

26

%

*

 

Riversource Mid-Cap Value Fund

 

*

 

3

%

The Manitowoc Company, Inc. Common Stock Fund

 

33

%

35

%

Vanguard Balanced Index Fund

 

19

%

*

 

Vanguard Institutional Index Fund

 

16

%

15

%

Wells Fargo Advantage Small-Cap Disciplined Fund

 

*

 

29

%

 


*Fund not held at year-end.

 

**Investment shown at contract value which is the relevant measurement attribute for fully benefit-responsive investment contracts.

 

10



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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 3                                    Investments in the Master Trust (Continued)

 

Net assets held by the Master Trust at December 31 are as follows:

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Investments with fair value determined by quoted market price:

 

 

 

 

 

Common/collective trust funds*

 

$

262,766,194

 

$

287,824,125

 

Mutual funds

 

215,954,137

 

243,709,903

 

Money market fund

 

3,657

 

27,030

 

 

 

 

 

 

 

Net assets of the Master Trust

 

478,723,988

 

531,561,058

 

 

 

 

 

 

 

Less - Net assets allocated to The Manitowoc Company, Inc. 401(k) Retirement Plan

 

366,392,095

 

403,487,273

 

 

 

 

 

 

 

Net assets allocated to the Plan at contract value

 

$

112,331,893

 

$

128,073,785

 

 


*Shown at contract value which is the relevant measurement attribute for the Capital Preservation Fund.

 

Investment income (loss) in the fair value of investments recognized by the Master Trust for the years ended December 31, 2011 and 2010, was allocated as follows:

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Investment income (loss):

 

 

 

 

 

Interest and dividends

 

$

4,497,619

 

$

3,963,289

 

Net appreciation (depreciation) in fair value of investments

 

(29,223,602

)

57,507,608

 

 

 

 

 

 

 

Total investment income (loss) of the Master Trust

 

(24,725,983

)

61,470,897

 

 

 

 

 

 

 

Less - Investment income (loss) allocated to The Manitowoc Company, Inc. 401(k) Retirement Plan

 

(16,043,600

)

46,233,144

 

 

 

 

 

 

 

Net investment income (loss) allocated to the Plan

 

$

(8,682,383

)

$

15,237,753

 

 

11



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 3                                    Investments in the Master Trust (Continued)

 

During 2011 and 2010, the Master Trust’s investments (including gains and losses on investments bought and sold as well as held during the year) appreciated (depreciated) in value as follows:

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Common/collective trust funds

 

$

(21,115,393

)

$

31,372,269

 

Mutual funds

 

(8,108,209

)

26,135,339

 

 

 

 

 

 

 

Net appreciation (depreciation)

 

$

(29,223,602

)

$

57,507,608

 

 

Investments that represent 5% or more of the Master Trust’s net assets as of December 31, 2011 and 2010, are as follows:

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Capital Preservation Fund*

 

$

123,701,431

 

$

123,930,787

 

Fidelity Contrafund

 

34,652,659

 

**

 

Manitowoc Moderate Growth Fund*

 

46,692,750

 

45,792,413

 

PIMCO Funds Total Return Fund

 

43,839,392

 

45,517,445

 

The Manitowoc Company, Inc. Common Stock Fund

 

70,592,737

 

94,177,770

 

Vanguard Institutional Index Fund

 

39,222,899

 

32,791,016

 

 


*Investment shown at contract value which is the relevant measurement attribute for fully benefit-responsive investment contracts.

 

**Represents less than 5% of the Master Trust’s net assets for this year.

 

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The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 4                                    Fair Value Measurements

 

Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value.  That framework provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value hierarchy are described as follows:

 

Level 1                                        Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

 

Level 2                                        Inputs to the valuation methodology include:

 

·                  Quoted prices for similar assets or liabilities in active markets.

 

·                  Quoted prices for identical or similar assets or liabilities in inactive markets.

 

·                  Inputs other than quoted prices that are observable for the asset or liability.

 

·                  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

 

Level 3                                        Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.  Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

 

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Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 4                                    Fair Value Measurements (Continued)

 

Following is a description of the valuation methodologies used for assets measured at fair value.  There have been no changes in methodologies at December 31, 2011 and 2010.

 

Common/collective trust funds:  Valued at the net asset value (NAV) of units held by the Plan at year-end, provided by the administrator of the fund.  The NAV is based on the value of the underlying assets of the fund, minus its liabilities, and then divided by the number of units outstanding.  The NAV’s unit price is quoted on a private market that is not active; however, the unit price is based on the underlying investments which are traded on an active market.  The Capital Preservation Fund is a common/collective trust which holds a guaranteed investment contract.  The guaranteed investment contract is valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the creditworthiness of the issuer.  The Manitowoc Aggressive Growth Fund, Manitowoc Conservative Growth Fund, and Manitowoc Moderate Growth Fund each hold units of the Capital Preservation Fund.

 

Mutual funds:  Valued at the NAV provided by the administrator of the fund.  The NAV is a quoted price in an active market.

 

Money market fund:  Valued using $1 for the NAV.  The NAV is a quoted price in an active market.

 

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

14



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 4                                    Fair Value Measurements (Continued)

 

The following tables set forth by level, within the fair value hierarchy, the Master Trust’s assets at fair value as of December 31, 2011 and 2010:

 

 

 

Fair Value Measurements at December 31, 2011

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

in Active

 

Significant

 

 

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

 

 

Identical

 

Observable

 

Unobservable

 

 

 

 

 

Assets

 

Inputs

 

Inputs

 

 

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds:

 

 

 

 

 

 

 

 

 

Growth funds

 

$

0

 

$

68,781,869

 

$

0

 

$

68,781,869

 

Common Stock fund

 

0

 

70,592,737

 

0

 

70,592,737

 

Capital Preservation fund

 

0

 

126,757,810

 

0

 

126,757,810

 

 

 

 

 

 

 

 

 

 

 

Total common/collective trust funds

 

0

 

266,132,416

 

0

 

266,132,416

 

 

 

 

 

 

 

 

 

 

 

Mutual funds:

 

 

 

 

 

 

 

 

 

Allocation fund

 

7,054,110

 

0

 

0

 

7,054,110

 

Blended funds

 

73,899,132

 

0

 

0

 

73,899,132

 

Bond fund

 

43,839,392

 

0

 

0

 

43,839,392

 

Growth funds

 

70,198,882

 

0

 

0

 

70,198,882

 

Value funds

 

20,962,621

 

0

 

0

 

20,962,621

 

 

 

 

 

 

 

 

 

 

 

Total mutual funds

 

215,954,137

 

0

 

0

 

215,954,137

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

0

 

3,657

 

0

 

3,657

 

 

 

 

 

 

 

 

 

 

 

Total assets at fair value

 

$

215,954,137

 

$

266,136,073

 

$

0

 

$

482,090,210

 

 

15



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 4                                    Fair Value Measurements (Continued)

 

 

 

Fair Value Measurements at December 31, 2010

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

in Active

 

Significant

 

 

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

 

 

Identical

 

Observable

 

Unobservable

 

 

 

 

 

Assets

 

Inputs

 

Inputs

 

 

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust funds:

 

 

 

 

 

 

 

 

 

Growth funds

 

$

0

 

$

69,949,515

 

$

0

 

$

69,949,515

 

Common Stock fund

 

0

 

94,177,770

 

0

 

94,177,770

 

Capital Preservation fund

 

0

 

125,042,641

 

0

 

125,042,641

 

 

 

 

 

 

 

 

 

 

 

Total common/collective trust funds

 

0

 

289,169,926

 

0

 

289,169,926

 

 

 

 

 

 

 

 

 

 

 

Mutual funds:

 

 

 

 

 

 

 

 

 

Blended funds

 

96,415,758

 

0

 

0

 

96,415,758

 

Bond fund

 

45,517,445

 

0

 

0

 

45,517,445

 

Growth funds

 

71,245,675

 

0

 

0

 

71,245,675

 

Value funds

 

23,571,423

 

0

 

0

 

23,571,423

 

Allocation fund

 

6,959,602

 

0

 

0

 

6,959,602

 

 

 

 

 

 

 

 

 

 

 

Total mutual funds

 

243,709,903

 

0

 

0

 

243,709,903

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

0

 

27,030

 

0

 

27,030

 

 

 

 

 

 

 

 

 

 

 

Total assets at fair value

 

$

243,709,903

 

$

289,196,956

 

$

0

 

$

532,906,859

 

 

16



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 5                                    Net Asset Value Per Share

 

The following table sets forth additional disclosures of the Master Trust’s investments whose fair value is estimated using net asset value per share as of December 31, 2011 and 2010:

 

 

 

Fair Value Estimated Using Net Asset Value

 

 

 

per Share as of December 31, 2011

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Unfunded

 

Redemption

 

Redemption

 

Redemption

 

Investment

 

Fair Value*

 

Commitment

 

Frequency

 

Restrictions

 

Notice Period

 

 

 

 

 

 

 

 

 

 

 

 

 

Manitowoc Moderate Growth Fund** (a)

 

$

46,692,750

 

$

0

 

Daily

 

Written or telephone notice

 

1 day

 

 

 

 

 

 

 

 

 

 

 

 

 

The Manitowoc Company, Inc. Common Stock Fund (b)

 

70,592,737

 

0

 

Daily

 

Written or telephone notice

 

1 day

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Preservation Fund** (c)

 

123,701,431

 

0

 

Daily

 

Written or telephone notice

 

1 day

 

 

 

 

Fair Value Estimated Using Net Asset Value

 

 

 

per Share as of December 31, 2010

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Unfunded

 

Redemption

 

Redemption

 

Redemption

 

Investment

 

Fair Value*

 

Commitment

 

Frequency

 

Restrictions

 

Notice Period

 

 

 

 

 

 

 

 

 

 

 

 

 

Manitowoc Moderate Growth Fund (a)

 

$

45,792,413

 

$

0

 

Daily

 

Written or telephone notice

 

1 day

 

 

 

 

 

 

 

 

 

 

 

 

 

The Manitowoc Company, Inc. Common Stock Fund (b)

 

94,177,770

 

0

 

Daily

 

Written or telephone notice

 

1 day

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Preservation Fund** (c)

 

123,930,787

 

0

 

Daily

 

Written or telephone notice

 

1 day

 

 


*The fair value of the investment has been estimated using the net asset value of the investment.

 

**Shown at contract value which is the relevant measurement attribute for the Capital Preservation Fund.

 

17



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 5                                    Net Asset Value Per Share (Continued)

 

a)            The strategy of this investment is to diversify investments equally between fixed income and equity securities.  The strategy invests 45% of its assets in fixed income securities and 55% of the assets in equity securities.  The objective of this asset class is balanced between capital appreciation and preservation of principal.  Periodically, this fund will be rebalanced back to its stated Investment Policy objective of 45% fixed income securities and 55% equity securities.

 

b)            This is a single stock portfolio that tracks the performance of The Manitowoc Company, Inc. Common Stock.  The price of the stock can fluctuate from day to day or month to month, and is designed for individuals who invest for the long term and can tolerate short-term volatility.

 

c)             The strategy of this investment is the preservation of capital, as well as to provide a competitive level of income over time with the preservation of capital.  To achieve its investment objectives, the manager will invest primarily in the Fidelity Managed Income Portfolio II (MIP II) Fund.  MIP II will be supplemented with the Marshall Money Market Fund (Class Y) to help to provide additional liquidity in order to meet regular withdrawals.

 

Note 6                                    Party-in-Interest Transactions

 

Transactions involving The Manitowoc Company, Inc. common stock and notes receivable from participants are considered party-in-interest transactions.  These transactions are not, however, considered prohibited transactions under 29 CFR 408(b) of ERISA regulations.

 

Certain plan investments are common/collective trust funds, money market fund, and guaranteed investment contracts managed by M&I.  M&I is the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions.  In addition, the Plan pays certain administrative expenses to M&I, as described in Note 1.  Fees paid by the Plan to the trustee for administrative expenses amounted to $167,005 and $153,695 for 2011 and 2010, respectively.

 

18



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 7                                    Plan Termination

 

The employer intends to continue the Plan indefinitely; however, the employer reserves the right to terminate the Plan at any time.  In the event of termination, all amounts credited to participants’ accounts shall become 100% vested and distributed to participants in accordance with the Plan’s provisions.

 

Note 8                                    Tax-Exempt Status of the Plan

 

On June 2, 2004, the Internal Revenue Service (IRS) declared that the Plan is qualified pursuant to Section 401 of the Internal Revenue Code.  Plan management believes any amendments and events since the effective date of the last IRS determination letter do not affect the qualified status of the Plan.  Accordingly, the Plan is exempt from federal and state income taxes under current provisions of their respective laws.

 

GAAP requires plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would be sustained upon examination by the IRS.  The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.  The plan administrator believes it is no longer subject to income tax examinations for years prior to 2008.

 

Note 9                                    Reconciliation of Financial Statements to Form 5500

 

The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2011 and 2010, to Form 5500:

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Net assets available for benefits per the financial statements

 

$

113,202,027

 

$

128,777,845

 

Deemed distributions on defaulted loans

 

(55,734

)

(34,622

)

 

 

 

 

 

 

Net assets available for benefits per Form 5500

 

$

113,146,293

 

$

128,743,223

 

 

19



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

 

Notes to Financial Statements

 

Note 9                                    Reconciliation of Financial Statements to Form 5500 (Continued)

 

The following is a reconciliation of the change in net assets available for benefits per the financial statements at December 31, 2011 and 2010, to Form 5500:

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Net increase (decrease) in net assets available for benefits per the financial statements

 

$

(15,575,818

)

$

9,751,314

 

Deemed distributions on defaulted loans

 

(21,112

)

(34,622

)

 

 

 

 

 

 

Change in net assets per Form 5500

 

$

(15,596,930

)

$

9,716,692

 

 

Note 10                             Risks and Uncertainties

 

The Master Trust’s investments are exposed to various risks, such as interest rate, market, and credit risks.  Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

 

Note 11                             Voluntary Correction Program

 

The Company filed a Voluntary Correction Program (VCP) submission with the IRS on January 31, 2011, to address the manner in which Plan hardship and in-service distributions were approved for Plan participants.  These items did not have a material impact on the Plan’s net assets available for benefits, and the Company does not expect the VCP submission to affect the Plan’s tax status.  As of December 31, 2011, the submission is still outstanding.

 

20



Table of Contents

 

Supplemental Schedule

 



Table of Contents

 

The Manitowoc Company, Inc.

Retirement Savings Plan

Plan’s EIN #39-0448110   Plan #019

 

Schedule H, Line 4i - Schedule of Assets (Held at End of Year)

December 31, 2011

 

Identity of Issue,

 

Description of Investment Including Maturity

 

 

 

 

 

Borrower, Lessor,

 

Date, Rate of Interest, Collateral, Par, or

 

 

 

Current

 

or Similar Party

 

Maturity Value

 

Cost

 

Value

 

 

 

 

 

 

 

 

 

Participant loans*

 

Due dates range from 1 to 5 years - Interest rates range from 4.25% to 9.25%

 

$

0

 

$

791,382

 

 


*Denotes party-in-interest

 

22



Table of Contents

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee, which administers the Plan, has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Manitowoc, and State of Wisconsin, on the 28th day of June, 2012.

 

 

 

THE MANITOWOC COMPANY, INC.
RETIREMENT SAVINGS PLAN

 

 

 

/s/ Glen E. Tellock

 

Glen E. Tellock
Chairman and Chief Executive Officer

 

 

 

/s/ Carl J. Laurino

 

Carl J. Laurino
Senior Vice President and Chief Financial Officer

 

 

 

/s/ Thomas G. Musial

 

Thomas G. Musial
Senior Vice President of Human Resources and Administration

 



Table of Contents

 

EXHIBIT INDEX

 

Exhibit No.

 

Description

 

Filed Herewith

 

 

 

 

 

23.1

 

Consent of WIPFLI

 

X