What changed in this filing

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Item 1. Financial Statements

2022-05-03 compared with 2021-11-02 · 77 added, 314 removed, 495 unchanged (44% of the section changed)

50 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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SEPTEMBER 30 SEPTEMBER 30

2021 2020 2021 2020

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(In millions, except per share data)

9 unchanged sentences

Other, net 0.8 ( 6.2 )

2.0 0.9 2.6 8.4

Income (Loss) Before Income Taxes ( 21.3 ) 8.5

12 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

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2021 2020 2021 2020

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(In millions)

4 unchanged sentences

Reclassification of hedging activities into earnings 1.7 ( 0.6 )

Current period pension adjustment ( 1.4 ) ( 2.8 ) ( 1.4 ) ( 2.8 )

Reclassification of pension into earnings 1.2 1.1

Comprehensive Income (Loss) $ ( 113.0 ) $ 43.6 $ ( 126.8 ) $ 41.6

Comprehensive Loss $ ( 27.7 ) $ ( 32.5 )

Other comprehensive income (loss) attributable to noncontrolling interests

1 unchanged sentence

Foreign currency translation adjustment attributable to noncontrolling interests — 1.0

Comprehensive Income (Loss) Attributable to Stockholders $ ( 112.3 ) $ 42.6 $ ( 126.9 ) $ 40.8

Comprehensive Loss Attributable to Stockholders $ ( 28.5 ) $ ( 32.0 )

See notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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THREE MONTHS ENDED

(In millions)

6 unchanged sentences

Gain on the sale of investment — ( 4.6 )

Impairment charge 10.0 —

Stock-based compensation 1.7 3.5

13 unchanged sentences

Proceeds from the sale of investment — 15.7

Net cash used for investing activities ( 10.1 ) ( 29.8 )

Net cash provided by (used for) investing activities ( 9.3 ) 9.5

Financing Activities

3 unchanged sentences

Cash dividends paid ( 5.4 ) ( 5.3 )

Cash dividends paid to noncontrolling interest ( 0.2 ) ( 0.3 )

Financing fees paid ( 7.6 ) —

Purchase of treasury stock — ( 0.1 )

Net cash provided by (used for) financing activities 114.7 ( 19.1 )

Net cash used for financing activities ( 50.9 ) ( 8.0 )

Effect of exchange rate changes on cash 0.7 ( 2.8 )

Cash and Cash Equivalents

Increase (decrease) for the period ( 90.0 ) 25.3

Decrease for the period ( 0.4 ) ( 48.4 )

Balance at the beginning of the period 65.5 151.4

7 unchanged sentences

(In millions)

Balance, June 30, 2020 $ 0.1 $ 0.1 $ ( 7.2 ) $ 313.1 $ 435.7 $ ( 110.1 ) $ ( 24.7 ) $ ( 75.5 ) $ 531.5 $ 32.2 $ 563.7

Stock-based compensation — — — 0.3 — — — — 0.3 — 0.3

Stock issued under stock compensation plans — — 0.7 ( 0.7 ) — — — — — — —

Net income — — — — 5.1 — — — 5.1 0.6 5.7

Cash dividends — — — — ( 5.4 ) — — — ( 5.4 ) — ( 5.4 )

Current period other comprehensive income (loss) — — — — — 21.9 15.8 ( 2.8 ) 34.9 — 34.9

Reclassification adjustment to net income — — — — — — 2.0 1.0 3.0 — 3.0

Foreign currency translation on noncontrolling interest — — — — — — — — — 0.4 0.4

Balance, September 30, 2020 $ 0.1 $ 0.1 $ ( 6.5 ) $ 312.7 $ 435.4 $ ( 88.2 ) $ ( 6.9 ) $ ( 77.3 ) $ 569.4 $ 33.2 $ 602.6

Balance, June 30, 2021 $ 0.1 $ 0.1 $ ( 5.2 ) $ 315.5 $ 440.0 $ ( 70.4 ) $ 0.9 $ ( 85.8 ) $ 595.2 $ 34.8 $ 630.0

Stock-based compensation — — — ( 0.2 ) — — — — ( 0.2 ) — ( 0.2 )

Stock issued under stock compensation plans — — 0.3 ( 0.3 ) — — — — — — —

Net income (loss) — — — — ( 77.2 ) — — — ( 77.2 ) 0.4 ( 76.8 )

Cash dividends — — — — ( 5.5 ) — — — ( 5.5 ) — ( 5.5 )

Current period other comprehensive income (loss) — — — — — ( 14.6 ) ( 18.8 ) ( 1.4 ) ( 34.8 ) — ( 34.8 )

Reclassification adjustment to net income (loss) — — — — — — ( 2.9 ) 1.5 ( 1.4 ) — ( 1.4 )

Foreign currency translation on noncontrolling interest — — — — — — — — — ( 1.1 ) ( 1.1 )

Balance, September 30, 2021 $ 0.1 $ 0.1 $ ( 4.9 ) $ 315.0 $ 357.3 $ ( 85.0 ) $ ( 20.8 ) $ ( 85.7 ) $ 476.1 $ 34.1 $ 510.2

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC.

AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Accumulated Other Comprehensive Income (Loss)

Class A Common Stock Class B Common Stock Treasury Stock Capital in Excess of Par Value Retained Earnings Foreign Currency Translation Adjustment Deferred Gain (Loss) on Cash Flow Hedging Pension Adjustment Total Stockholders' Equity Noncontrolling Interests Total Equity

(In millions)

Balance, December 31, 2020 $ 0.1 $ 0.1 $ ( 6.0 ) $ 312.6 $ 443.2 $ ( 57.6 ) $ 12.5 $ ( 88.0 ) $ 616.9 $ 34.2 $ 651.1

1 unchanged sentence

Stock issued under stock compensation plans — — 0.5 ( 0.5 ) — — — — — — —

Purchase of treasury stock — — ( 0.1 ) — — — — — ( 0.1 ) — ( 0.1 )

Net income — — — — 5.6 — — — 5.6 0.5 6.1

Cash dividends — — — — ( 5.3 ) — — — ( 5.3 ) — ( 5.3 )

Current period other comprehensive income (loss) — — — — — 4.7 1.2 ( 2.8 ) 3.1 — 3.1

Reclassification adjustment to net income — — — — — — 10.4 2.8 13.2 — 13.2

Current period other comprehensive loss — — — — — ( 24.8 ) ( 14.3 ) — ( 39.1 ) — ( 39.1 )

Reclassification adjustment to net income (loss) — — — — — — ( 0.6 ) 1.1 0.5 — 0.5

Foreign currency translation on noncontrolling interest — — — — — — — — — ( 1.0 ) ( 1.0 )

Balance, September 30, 2020 $ 0.1 $ 0.1 $ ( 6.5 ) $ 312.7 $ 435.4 $ ( 88.2 ) $ ( 6.9 ) $ ( 77.3 ) $ 569.4 $ 33.2 $ 602.6

Balance, March 31, 2021 $ 0.1 $ 0.1 $ ( 5.5 ) $ 315.6 $ 443.5 $ ( 82.4 ) $ ( 2.4 ) $ ( 86.9 ) $ 582.1 $ 33.7 $ 615.8

Balance, December 31, 2021 $ 0.1 $ 0.1 $ ( 4.5 ) $ 315.1 $ 248.6 $ ( 97.7 ) $ ( 32.0 ) $ ( 72.6 ) $ 357.1 $ 25.8 $ 382.9

5 unchanged sentences

Reclassification adjustment to net income (loss) — — — — — — 1.7 1.2 2.9 — 2.9

Foreign currency translation on noncontrolling interest — — — — — — — — — ( 1.2 ) ( 1.2 )

Balance, September 30, 2021 $ 0.1 $ 0.1 $ ( 4.9 ) $ 315.0 $ 357.3 $ ( 85.0 ) $ ( 20.8 ) $ ( 85.7 ) $ 476.1 $ 34.1 $ 510.2

Balance, March 31, 2022 $ 0.1 $ 0.1 $ — $ 312.3 $ 218.2 $ ( 102.3 ) $ ( 32.1 ) $ ( 71.4 ) $ 324.9 $ 26.6 $ 351.5

See notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2021

MARCH 31, 2022

(Tabular Amounts in Millions, Except Per Share and Percentage Data)

4 unchanged sentences

("HYG"), designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally primarily under the Hyster ® and Yale ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships.

Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, the Netherlands, the Philippines, Japan, Italy, Brazil and Vietnam.

Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.

The Company operates Bolzoni S.p.A.

16 unchanged sentences

The Company’s percentage share of the net income or loss from these equity investments is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations.

During 2020, broad measures taken by governments, businesses and others across the globe to limit the spread of novel coronavirus ("COVID-19") adversely affected the Company.

The resulting significant decline in economic activity also reduced the demand for the Company's products and limited the availability of components from certain suppliers.

Production was significantly reduced or suspended at the Company's Chinese and European facilities for certain periods during the first and second quarters of 2020.

The Company also initiated several cost reduction measures designed to ease liquidity pressure.

These cost containment actions included spending and travel restrictions, significant reductions in temporary personnel, furloughs, suspension of incentive compensation and profit sharing, benefit reductions and salary reductions.

Effective January 1, 2021, the Company reinstated pre-pandemic salaries, benefits and incentive compensation programs.

The cost containment actions associated with hiring, use of contract and temporary workers, travel and meetings, as well as other discretionary spending are continuing.

These measures are expected to remain in place until market and economic uncertainty dissipates and results improve.

In addition, the Company adjusted production levels in 2020 at its manufacturing plants to align more closely with the reduced levels of demand, and worked closely with suppliers to help ensure current needs were met while also promoting continuity as the market improved.

However, despite these efforts, during the third quarter and first nine months of 2021, the Company experienced further pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery, all of which have negatively impacted the Company.

These financial statements have been prepared in accordance with U.S.

1 unchanged sentence

Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

In the opinion of

management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of September 30, 2021 and the results of its operations and changes in equity for the three and nine months ended September 30, 2021 and 2020, and the results of its cash flows for the nine months ended September 30, 2021 and 2020 have been included.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of March 31, 2022 and the results of its operations and changes in equity for the three months ended March 31, 2022 and 2021, and the results of its cash flows for the three months ended March 31, 2022 and 2021 have been included.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

1 unchanged sentence

Note 2— Recently Issued Accounting Standards

The following table provides a brief description of recent accounting standard updates ("ASU") adopted January 1, 2021.

The adoption of these standards did not have a material effect on the Company's financial position, results of operations, cash flows or related disclosures.

Standard Description

ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes The guidance eliminates certain exceptions to the income tax guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences.

The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill.

ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815):

Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 The guidance clarifies certain interactions between the guidance to account for certain equity securities and investments under the equity method of accounting.

As of January 1, 2022, the Company did not adopt any recent accounting standard updates ("ASU") which had a material effect on the Company's financial position, results of operations, cash flows or related disclosures.

The following table provides a brief description of ASUs not yet adopted:

22 unchanged sentences

Standalone selling prices are generally determined based on the prices charged to customers or using expected cost plus margin.

Impairment losses recognized on receivables or contract assets were not significant for the three and nine months ended September 30, 2021 and 2020.

Impairment losses recognized on receivables or contract assets were not significant for the three months ended March 31, 2022 and 2021.

The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less.

4 unchanged sentences

THREE MONTHS ENDED

SEPTEMBER 30, 2021

MARCH 31, 2022

Lift truck business

6 unchanged sentences

THREE MONTHS ENDED

SEPTEMBER 30, 2020

Lift truck business

Americas EMEA JAPIC Bolzoni Nuvera Elims Total

Dealer sales $ 189.2 $ 115.6 $ 40.0 $ — $ — $ — $ 344.8

Direct customer sales 113.3 0.4 — — — — 113.7

Aftermarket sales 96.5 23.0 7.9 — — — 127.4

Other 27.9 4.8 0.1 63.3 0.7 ( 30.3 ) 66.5

Total Revenues $ 426.9 $ 143.8 $ 48.0 $ 63.3 $ 0.7 $ ( 30.3 ) $ 652.4

NINE MONTHS ENDED

SEPTEMBER 30, 2021

Lift truck business

Americas EMEA JAPIC Bolzoni Nuvera Elims Total

Dealer sales $ 668.3 $ 395.9 $ 157.6 $ — $ — $ — $ 1,221.8

Direct customer sales 329.8 6.6 — — — — 336.4

Aftermarket sales 347.3 79.5 23.3 — — — 450.1

Other 87.7 17.2 0.7 254.3 0.5 ( 122.7 ) 237.7

Total Revenues $ 1,433.1 $ 499.2 $ 181.6 $ 254.3 $ 0.5 $ ( 122.7 ) $ 2,246.0

NINE MONTHS ENDED

SEPTEMBER 30, 2020

MARCH 31, 2021

Lift truck business

22 unchanged sentences

In addition, for certain products, services and customer types, the Company collects payment prior to the transfer of control to the customer.

The increase in customer deposits relates mainly to down payments on customer orders.

Deferred Revenue

3 unchanged sentences

Foreign currency effect 1.0

Balance, September 30, 2021 $ 76.2

Balance, March 31, 2022 $ 154.6

Note 4— Business Segments

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Financial information for each reportable segment is presented in the following table:

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Revenues from external customers

4 unchanged sentences

Bolzoni 95.1 79.5

Nuvera 0.2 0.7 0.5 2.8

Eliminations ( 47.2 ) ( 38.2 )

34 unchanged sentences

Additionally, the Company's interim effective income tax rate is computed and applied without regard to pre-tax losses where such losses are not expected to generate a current-year tax benefit.

The Tax Cuts and Jobs Act ("Tax Reform Act") includes anti-deferral and anti-base erosion provisions, the global intangible low-taxed income (“GILTI”) provisions and the base-erosion and anti-abuse tax (“BEAT”) provisions.

The GILTI provisions require the Company to include non-U.S.

earnings in excess of an allowable return on the Company’s non-U.S.

subsidiaries' tangible assets in its U.S.

income tax return.

The Company has elected to account for GILTI tax in the period in which it is incurred.

The BEAT provisions in the Tax Reform Act created a minimum tax where a lower tax rate is applied to taxable income determined without the benefit of certain base-erosion payments made to related non-U.S.

corporations.

The Company is taxed under this regime if such minimum tax exceeds the regular U.S.

corporate income tax.

The GILTI and BEAT provisions, when applicable, are included in permanent adjustments in the table below.

A reconciliation of the consolidated federal statutory rate to the reported income tax rate is as follows:

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A reconciliation of the U.S.

federal statutory rate to the reported income tax rate is as follows:

THREE MONTHS ENDED

Income (loss) before income taxes $ ( 21.3 ) $ 8.5

2 unchanged sentences

Permanent adjustments:

State income taxes ( 2.7 ) 0.3 ( 3.0 ) 0.3

Valuation allowance 10.9 0.4

Global intangible low-taxed income 0.9 ( 1.6 ) 1.8 1.1

Other ( 0.3 ) —

Permanent adjustments 14.0 ( 3.1 ) 13.9 2.2

Discrete items ( 0.8 ) ( 0.1 )

Valuation allowance 21.9 — 22.2 —

Tax controversy resolution ( 1.2 ) — ( 4.4 ) ( 4.6 )

Provision to return adjustments ( 2.1 ) ( 1.1 ) ( 2.1 ) ( 1.1 )

Other 0.3 0.2 1.0 ( 0.6 )

Discrete items 18.9 ( 0.9 ) 16.7 ( 6.3 )

Income tax provision $ 2.9 $ 2.4

Reported income tax rate ( 13.6 ) % 28.2 %

During the third quarter of 2021, the Company recognized a discrete tax charge of $ 21.9 million, primarily for the establishment of a valuation allowance against the beginning of the year balance of the Company’s U.S.

deferred tax assets, excluding the portion of assets available to be carried back to the prior tax year.

Based upon a review of the Company’s recent operations, including cumulative U.S.

pretax losses, lack of available tax planning strategies and declining forecasts due to supply and logistics constraints, the evidence available no longer supports a more likely than not standard of realization for the Company’s U.S.

deferred tax assets.

Although the Company projects earnings over the longer term for its U.S.

operations due to the cumulative losses, such longer-term forecasts are not sufficient evidence to support the future utilization of deferred tax assets.

Additionally, $ 16.5 million of valuation allowance expense, primarily related to U.S.

operations, was provided against deferred tax assets generated in the current year.

During the third quarter of 2021, the Company recognized a discrete tax benefit of $ 2.1 million for favorable domestic provision-to-return items mostly related to a reduction in BEAT tax and an increase in R&D credit.

This benefit was partially offset by the associated charge to taxes on unremitted non-U.S.

earnings for which no reinvestment plan has been identified of $ 0.4 million.

Additionally, the Company recognized a discrete tax benefit of $ 2.6 million for the expiration of statute of limitations for applicable uncertain tax positions, partially offset by a tax charge of $ 1.4 million for additional tax controversy reserves.

During the third quarter of 2020, the Company recognized a discrete tax benefit of $ 1.1 million, related to domestic provision-to-return items, which was primarily related to BEAT.

During the third quarter and first nine months of 2021, the Company recognized a discrete tax charge of $ 0.6 million and $ 2.0 million, respectively, for the tax impact of the favorable adjustment for social contribution taxes previously imposed on material purchases in Brazil.

See Note 13 for additional information.

During the second quarter of 2021 and 2020, the Company recognized a discrete tax benefit of $ 3.3 million and $ 4.3 million, respectively, related to the expiration of the statute of limitations for uncertain tax positions related to acquisitions for which an offsetting pre-tax indemnity receivable was also recorded.

The expense for the release of the indemnity receivable was recorded in pre-tax earnings on the line “Other, net” in the unaudited condensed consolidated statements of operations.

The Company's reported income tax rate differs from the U.S.

federal statutory tax rate primarily as a result of recording additional valuation allowances and an interim adjustment from pretax losses for which no tax benefit was recognized.

Note 6— Reclassifications from OCI

1 unchanged sentence

Details about OCI Components Amount Reclassified from OCI Affected Line Item in the Statement Where Net Income Is Presented

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Gain (loss) on cash flow hedges:

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Tax benefit ( 0.1 ) ( 0.1 ) Income tax provision

Net of tax $ 2.9 $ ( 2.0 ) $ 5.2 $ ( 10.4 ) Net income

Net of tax $ ( 1.7 ) $ 0.6 Net income (loss)

Amortization of defined benefit pension items:

1 unchanged sentence

Total before tax ( 1.2 ) ( 1.4 ) Income (loss) before income taxes

Tax (expense) benefit ( 0.1 ) 0.1 0.5 0.6 Income tax provision

Net of tax $ ( 1.5 ) $ ( 1.0 ) $ ( 3.7 ) $ ( 2.8 ) Net income

Tax expense — 0.3 Income tax provision

Net of tax $ ( 1.2 ) $ ( 1.1 ) Net income (loss)

Total reclassifications for the period $ ( 2.9 ) $ ( 0.5 )

Note 7— Current and Long-Term Financing

On May 28, 2021, the Company entered into an agreement for a $ 225.0 million term loan (the “Term Loan”) which expires on May 28, 2028.

The Term Loan replaced the Company’s previous term loan facility, which was set to mature on May 30, 2023.

The Term Loan requires quarterly principal payments on the last day of each March, June, September and December commencing September 30, 2021 in an amount equal to $562,500 and the final principal repayment is due in May 2028.

The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan.

At September 30, 2021, there was $224.4 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $5.5 million for discounts and unamortized deferred financing fees.

The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, material real property, fixtures and general intangibles consisting of intellectual property and a second priority lien on working capital assets of the Company, which includes, but is not limited to cash and cash equivalents, accounts receivable and inventory.

Borrowings under the Term Loan bear interest at a floating rate, which can be a base rate or Eurodollar rate, as defined in the Term Loan, plus an applicable margin.

The applicable margin is 2.50 % for base rate loans and 3.50 % for Eurodollar loans.

In addition, the Term Loan includes a Eurodollar rate floor of 0.50 %.

In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Term Loan.

The Term Loan limits the payment of dividends and other restricted payments the Company may make up to $50.0 million in any fiscal year.

Additional dividends may be paid if the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of the payment.

The Term Loan also contains a provision

requiring a premium to be paid in the event of a repricing of the borrowings under the Term Loan, whether by amendment or entry into new loans, within the six-month period following entry into the Term Loan.

At September 30, 2021, the Company was in compliance with the covenants in the Term Loan.

During the second quarter of 2021, approximately $ 1.5 million of deferred financing fees relating to the old term loan were expensed, which was recorded on the line "Other, net" in the unaudited condensed consolidated statements of operations.

In addition, approximately $ 5.8 million of additional deferred financing fees were incurred in connection with the Term Loan.

On June 24, 2021, the Company entered into an amended and restated agreement for a $ 300.0 million secured floating-rate revolving credit facility (as amended, the "Facility").

There were $ 73.6 million of borrowings outstanding under the Facility at September 30, 2021.

The availability under the Facility at September 30, 2021 was $ 222.0 million, which reflects reductions of $ 4.4 million for letters of credit and other restrictions.

The Facility consists of a domestic revolving credit facility in the initial amount of $210.0 million and a foreign revolving credit facility in the initial amount of $90.0 million.

The facility expires June 24, 2026.

The Facility replaced the Company's previous revolving credit facility, which was to expire April 28, 2022.

The Facility can be increased up to $400.0 million over the term of the Facility in minimum increments of $10.0 million, subject to approval by the lenders.

The obligations under the Facility are generally secured by a first priority lien on working capital assets of the Company, which includes but is not limited to cash and cash equivalents, accounts receivable and inventory, and a second priority lien on the present and future shares of capital stock, fixtures and general intangibles consisting of intellectual property.

Borrowings under the Facility bear interest at a floating rate, which can be a base rate, LIBOR or EURIBOR, as defined in the Facility, plus an applicable margin.

The applicable margins are based on the total excess availability, as defined in the Facility, and range from 0.25 % to 0.75 % for U.S.

base rate loans and 1.25 % to 1.75 % for LIBOR, EURIBOR and foreign base rate loans.

In addition, the Facility requires the payment of a fee of 0.25 % per annum on the unused commitment based on the average daily outstanding balance during the preceding month.

The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Facility.

The Facility limits the payment of dividends and other restricted payments the Company may make unless certain total excess availability and/or fixed charge coverage ratio thresholds, each as set forth in the Facility, are satisfied.

The Facility also requires the Company to achieve a minimum fixed charge coverage ratio when total excess availability is less than the greater of 10% of the total borrowing base, as defined in the Facility, and $20.0 million.

At September 30, 2021, the Company was in compliance with the covenants in the Facility.

The Company incurred approximately $ 1.8 million of additional deferred financing fees in connection with the Facility.

The Company had other debt outstanding, excluding finance leases, of approximately $ 109.4 million at September 30, 2021.

In addition to the excess availability under the Facility of $ 222.0 million, the Company had remaining availability of $ 23.9 million related to other non-U.S.

revolving credit agreements.

Note 7— Financial Instruments and Derivative Financial Instruments

1 unchanged sentence

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments.

The fair values of revolving credit agreements and long-term debt, excluding capital leases, were determined using current rates offered for similar obligations taking into account company credit risk.

This valuation methodology is Level 2 as defined in the fair value hierarchy.

At September 30, 2021, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $ 400.8 million and $ 401.9 million, respectively.

The fair values of revolving credit agreements and long-term debt, excluding finance leases, were determined using current rates offered for similar obligations taking into account company credit risk.

valuation methodology is Level 2 as defined in the fair value hierarchy.

At March 31, 2022, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $ 449.8 million and $ 450.9 million, respectively.

At December 31, 2021, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $ 486.4 million and $ 490.3 million, respectively.

9 unchanged sentences

The Company periodically enters into forward foreign currency contracts that are designated as net investment hedges of the Company's net investment in its foreign subsidiaries.

For derivative instruments that are designated and qualified as a hedge of a net investment in foreign currency, the gain or loss is reported in other comprehensive income as part of the cumulative translation adjustment to the extent it is effective.

For derivative instruments that are designated and qualified as a hedge of a net investment in foreign currency, the gain or loss is reported in OCI as part of the cumulative translation adjustment to the extent it is effective.

The Company utilizes the forward-rate method of assessing hedge effectiveness.

10 unchanged sentences

Foreign Currency Derivatives:

The Company held forward foreign currency exchange contracts with total notional amounts of $ 1.3 billion at September 30, 2021, primarily denominated in euros, Japanese yen, U.S.

The Company held forward foreign currency exchange contracts with total notional amounts of $ 1.2 billion at March 31, 2022, primarily denominated in euros, Japanese yen, U.S.

dollars, Chinese renminbi, Mexican pesos, British pounds, Swedish kroner, and Australian dollars.

The Company held forward foreign currency exchange contracts with total notional amounts of $ 1.1 billion at December 31, 2021, primarily denominated in euros, Japanese yen, U.S.

dollars, Chinese renminbi, British pounds, Mexican pesos, Swedish kroner and Australian dollars.

The Company held forward foreign currency exchange contracts with total notional amounts of $ 840.5 million at December 31, 2020, primarily denominated in euros, U.S.

dollars, Japanese yen, British pounds, Chinese renminbi, Mexican pesos, Swedish kroner and Australian dollars.

The fair value of these contracts approximated a net liability of $ 16.1 million and a net asset of $ 23.5 million at September 30, 2021 and December 31, 2020, respectively.

The fair value of these contracts approximated a net liability of $ 39.6 million and $ 26.7 million at March 31, 2022 and December 31, 2021, respectively.

Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 36 months.

The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI.

Based on market valuations at September 30, 2021, $ 4.3 million of the amount of net deferred loss included in OCI at September 30, 2021 is expected to be reclassified as expense into the unaudited condensed consolidated statements of operations over the next twelve months, as the transactions occur.

Based on market valuations at March 31, 2022, $ 20.6 million of the amount of net deferred loss included in OCI at March 31, 2022 is expected to be reclassified as expense into the unaudited condensed consolidated statements of operations over the next twelve months, as the transactions occur.

Interest Rate Derivatives:

The Company holds certain contracts that hedge interest payments on its $ 225.0 million term loan borrowings.

In the second quarter of 2021, the Company entered into new interest rate swaps with a six-year term and $ 180.0 million notional amount.

The previous interest rate swaps were amended and included in the new interest rate swaps.

The fair value of the previous interest rate swaps will be amortized over the remaining original term.

In addition, the Company holds certain contracts that hedge interest payments on Bolzoni's debt.

The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at September 30, 2021 and December 31, 2020:

The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at March 31, 2022 and December 31, 2021:

Notional Amount Average Fixed Rate

SEPTEMBER 30 DECEMBER 31 SEPTEMBER 30 DECEMBER 31

2021 2020 2021 2020 Term at September 30, 2021

MARCH 31 DECEMBER 31 MARCH 31 DECEMBER 31

2022 2021 2022 2021 Term at March 31, 2022

$ 180.0 $ 180.0 1.68 % 1.68 % Extending to May 2027

$ 17.8 $ 16.0 ( 0.14 ) % ( 0.14 ) % Extending to September 2025

$ — $ 56.5 — % 1.94 % Terminated May 2021

$ — $ 65.7 — % 2.20 % Terminated May 2021

The fair value of all interest rate swap agreements was a net liability of $ 4.9 million and $ 4.9 million at September 30, 2021 and December 31, 2020, respectively.

The fair value of all interest rate swap agreements was a net asset of $ 6.2 million and a net liability $ 3.2 million at March 31, 2022 and December 31, 2021, respectively.

The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI.

Based on market valuations at September 30, 2021, $ 3.7 million of the amount included in OCI as net deferred loss is expected to be reclassified as expense in the unaudited condensed consolidated statements of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.

Based on market valuations at March 31, 2022, $ 1.0 million of the amount included in OCI as net deferred loss is expected to be reclassified as expense in the unaudited condensed consolidated statements of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.

The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets:

Asset Derivatives Liability Derivatives

Balance Sheet Location SEPTEMBER 30

Balance Sheet Location MARCH 31

2022 DECEMBER 31

2020 Balance Sheet Location SEPTEMBER 30

2021 Balance Sheet Location MARCH 31

2022 DECEMBER 31

2 unchanged sentences

Interest rate swap agreements

Current Prepaid expenses and other $ 0.3 $ — Prepaid expenses and other $ — $ —

Current Other current liabilities — 0.3 Other current liabilities — 2.2

Long-term Other non-current assets 5.9 0.1 Other non-current assets — 0.1

Long-term Other long-term liabilities — 0.6 Other long-term liabilities — 1.9

Foreign currency exchange contracts

Current Prepaid expenses and other 0.9 15.7 Prepaid expenses and other 0.4 2.9

Other current liabilities 4.7 1.0 Other current liabilities 11.1 3.6

Current Other current liabilities 3.1 3.6 Other current liabilities 23.7 17.0

Long-term Other non-current assets 0.3 — Other non-current assets 0.2 —

4 unchanged sentences

Foreign currency exchange contracts

Current Prepaid expenses and other 0.6 2.8 Prepaid expenses and other 0.1 0.9

Other current liabilities 1.1 0.7 Other current liabilities 4.3 0.5

Current Other current liabilities 2.1 1.1 Other current liabilities 7.6 2.2

Total derivatives not designated as hedging instruments $ 2.1 $ 1.1 $ 7.6 $ 2.2

1 unchanged sentence

The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty as recorded in the unaudited condensed consolidated balance sheets:

Derivative Assets as of September 30, 2021 Derivative Liabilities as of September 30, 2021

Derivative Assets as of March 31, 2022 Derivative Liabilities as of March 31, 2022

Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount

11 unchanged sentences

Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)

THREE MONTHS ENDED NINE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 30 SEPTEMBER 30

THREE MONTHS ENDED THREE MONTHS ENDED

MARCH 31 MARCH 31

Derivatives Designated as Hedging Instruments 2022 2021 2022 2021

15 unchanged sentences

All other eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans.

During the third quarter of 2021, the Company recognized a settlement loss of $ 0.8 million resulting from lump-sum distributions exceeding the total projected interest cost for the plan year its U.S.

pension plan.

The Company remeasured the plan as of September 30, 2021 using a discount rate of 2.49 % compared to the December 31, 2020 discount rate of 2.09 %.

result of the remeasurement, the funded status of the plan decreased by $ 0.2 million and accumulated other comprehensive income increased by $ 1.4 million ($ 1.4 million net of tax).

During the third quarter of 2020, the Company recognized a settlement loss of $ 1.2 million resulting from lump-sum distributions exceeding the total projected interest cost for the plan year for its U.S.

pension plans.

The Company remeasured the plan as of September 30, 2020 using a discount rate of 2.27 %, compared to the December 31, 2019 discount rate of 3.02 %.

As a result of the remeasurement, the funded status of the plan decreased by $ 2.7 million and accumulated other comprehensive income increased by $ 3.6 million ($ 2.8 million net of tax).

The Company presents the components of net benefit cost, other than service cost, in other (income) expense in the unaudited condensed consolidated statements of operations for its pension plans.

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The components of pension (income) expense are set forth below:

THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 30 SEPTEMBER 30

2021 2020 2021 2020

THREE MONTHS ENDED

Interest cost $ 0.4 $ 0.4

Expected return on plan assets ( 1.0 ) ( 1.2 )

Settlement loss 0.8 1.2 0.8 1.2

Amortization of actuarial loss 0.5 0.5

15 unchanged sentences

Inventories are stated at the lower of cost or market for last-in, first-out (“LIFO”) inventory or lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory.

At September 30, 2021 and December 31, 2020, 52 % and 42 %, respectively, of total inventories were determined using the LIFO method, which consists primarily of manufactured inventories, including service parts, for the lift truck business in the United States.

At March 31, 2022 and December 31, 2021, 48 % and 51 %, respectively, of total inventories were determined using the LIFO method, which consists primarily of manufactured inventories, including service parts, for the lift truck business in the United States.

The FIFO method is used with respect to all other inventories.

2 unchanged sentences

Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation.

See Note 11 for discussion of the inventory reduction to net realizable value at Nuvera.

Note 11— Impairment and Other Charges

In connection with the preparation of the financial statements for the third quarter of 2021, the Company identified indicators of impairment primarily related to the unexpected level of significant, on-going pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery, all of which have negatively impacted the Company during the third quarter.

This continued high level of disruption to the Company’s manufacturing and logistics operations are expected for the remainder of 2021 and into 2022.

In addition, the effects of the COVID-19 pandemic, including border closures, halted Nuvera's progress on certain research and development agreements that were entered into prior to the start of the pandemic.

In anticipation of fulfilling these agreements, Nuvera made significant investments in manufacturing and equipment expansion, as well as increased inventory levels.

As a result, it was determined that carrying value of the Nuvera fixed assets exceeded the undiscounted cash flows from the assets and the fair value of Nuvera's fixed assets exceeded the carrying value by $ 10.0 million.

The impairment charge for property, plant and equipment was recorded in "Selling, general and administrative expenses" in the unaudited condensed consolidated statements of operations.

The estimated fair value of property, plant and equipment was determined using a cost approach, which is a Level 3 under the fair value hierarchy.

Based on the Company’s analysis, all remaining long-lived assets with finite lives were not impaired as of September 30, 2021.

In addition, Nuvera reduced its inventory by $ 14.8 million to its estimated net realizable value during the third quarter of 2021, which is recorded in “Cost of Sales” in the unaudited condensed consolidated statements of operations.

As of September 30, 2021, the Company had goodwill and indefinite-lived intangible assets of $ 112.3 million and $ 17.4 million, respectively.

The Company's goodwill primarily relates to the JAPIC and Bolzoni reporting units, which has goodwill of $ 54.8 million and $ 54.7 million, respectively.

The Company evaluates the carrying amount of goodwill and indefinite-lived intangible assets for impairment annually as of May 1st and between annual evaluations if changes in circumstances or the occurrence of certain events indicate potential impairment.

The Company completed the annual testing of impairment during the second quarter of 2021 and the fair value of the indefinite-lived intangible assets was in excess of its carrying value and thus, no impairment existed.

As of the most recent annual impairment test, the Company estimated an excess of fair value over carrying value of approximately 10 % for the JAPIC reporting unit goodwill and approximately 12 % and 16 % for the Bolzoni reporting unit goodwill and indefinite-lived intangibles, respectively.

As part of the ongoing goodwill qualitative analysis, the Company evaluates whether there are reasonably likely changes to management’s estimates that would have a material impact on the results of the goodwill impairment testing.

During the third quarter of 2021, the Company’s cash flow forecasts based upon management’s long-term view of markets used by senior management and the Board of Directors to evaluate operating performance did not result in impairment, as such long-term cash flows were not materially different than the cash flow projections used for the annual impairment valuation.

As the Company continues to evaluate the long-term future cash flow impacts of the on-going pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery, additional interim impairment testing may be necessary in future quarters and future impairment charges are reasonably possible.

Note 10— Product Warranties

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Payments made ( 10.0 )

Foreign currency effect ( 0.9 )

Balance at September 30, 2021 $ 67.2

Balance at March 31, 2022 $ 62.2

Note 11— Contingencies

4 unchanged sentences

Although the ultimate disposition of these proceedings is not presently determinable, management believes, after consultation with its legal counsel, that the likelihood is remote that costs will be incurred materially in excess of accruals already recognized.

The Company previously filed lawsuits in Brazil to recover certain social integration and social contribution taxes paid on gross sales, including the ICMS, which is a form of state value added tax.

During the course of the lawsuit, many other taxpayers filed lawsuits with the same objective.

Due to the increasing number of lawsuits filed, the Federal Supreme Court ("STF") declared that all ongoing legal cases should have their decision suspended until the STF decides on the matter, a decision that was expected to apply to all cases on this topic.

In 2019, the Company's legal advisors in Brazil notified the Company that they received judicial notification that the STF had issued a favorable decision in the case granting the Company the right to recover, by offsetting federal tax liabilities, amounts of overpayments collected by the government from 1999 to the present date.

The judicial court decision is final and not subject to appeals.

The current estimate of the refund calculated on a gross basis is approximately 110 million Brazilian reais, or approximately $20 million as of September 30, 2021.

Despite the favorable decision of the STF, the Brazilian tax authorities sought clarification in the same main lawsuit on certain issues, including the value of these credits (i.e., the gross rate or the net credit value), and certain other issues that could affect the Brazilian taxpayers' rights with respect to these credits, all of which could materially impact the realization of the credits.

During the second quarter of 2021, the STF ruled in favor of taxpayers that the refund should be calculated on a gross basis.

The amount and ultimate timing of realization of these recoveries is dependent upon administrative approvals, generation of federal tax liabilities in Brazil eligible for offset and potential impacts of future legislative actions within Brazil, all of which are uncertain.

The Company has negotiated the sale of these credits at a discount and has revised the net realizable value of the credits to approximately 42 million Brazilian reais, or $ 7.8 million as of September 30, 2021.

In addition, the Company has generated additional tax credits since the favorable decision in 2019 of approximately 12 million Brazilian reais, or approximately $ 2.4 million.

The Company recorded approximately $ 2.2 million and $ 8.5 million of income related to the revised estimate of net realizable value of these credits in the three and nine months ended September 30, 2021, respectively, in “Cost of Sales” in the unaudited condensed consolidated statements of operations.

Note 12— Guarantees

1 unchanged sentence

Terms of the third-party financing arrangements for which the Company is providing recourse or repurchase obligations generally range from one to five years .

Total amounts subject to recourse or repurchase obligations at September 30, 2021 and December 31, 2020 were $ 115.5 million and $ 119.7 million, respectively.

As of September 30, 2021, losses anticipated under the terms of the recourse or repurchase obligations were not significant and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements.

The Company generally retains a security interest in the related assets financed such that, in the event the Company would become obligated under the terms of the recourse or

repurchase obligations, the Company would take title to the assets financed.

The fair value of collateral held at September 30, 2021 was approximately $ 177.7 million based on Company estimates.

Total amounts subject to recourse or repurchase obligations at March 31, 2022 and December 31, 2021 were $ 120.2 million and $ 106.8 million, respectively.

As of March 31, 2022, losses anticipated under the terms of the recourse or repurchase obligations were not significant and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements.

The Company generally retains a security interest in the related assets financed such that, in the event the Company would become obligated under the terms of the recourse or repurchase obligations, the Company would take title to the assets financed.

The fair value of collateral held at March 31, 2022 was approximately $ 184.4 million based on Company estimates.

The Company estimates the fair value of the collateral using information regarding the original sales price, the current age of the equipment and general market conditions that influence the value of both new and used lift trucks.

The Company also regularly monitors the external credit ratings of the entities for which it has provided recourse or repurchase obligations.

As of September 30, 2021, the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities;

As of March 31, 2022, the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities;

however, there can be no assurance that the risk may not increase in the future.

In addition, the Company has an agreement with WF to limit its exposure to losses at certain eligible dealers.

Under this agreement, losses related to $ 21.9 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5 % of their original loan balance, or $ 11.5 million as of September 30, 2021.

The $ 21.9 million is included in the $ 115.5 million of total amounts subject to recourse or repurchase obligations at September 30, 2021.

Under this agreement, losses related to $ 21.3 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5 % of their original loan balance, or $ 11.7 million as of March 31, 2022.

The $ 21.3 million is included in the $ 120.2 million of total amounts subject to recourse or repurchase obligations at March 31, 2022.

Generally, the Company sells lift trucks through its independent dealer network or directly to customers.

2 unchanged sentences

On occasion, the credit quality of a customer or credit concentration issues within WF may require the Company to provide recourse or repurchase obligations of the lift trucks purchased by customers and financed through HYGFS.

At September 30, 2021, approximately $ 94.5 million of the Company's total recourse or repurchase obligations of $ 115.5 million related to transactions with HYGFS.

At March 31, 2022, approximately $ 100.0 million of the Company's total recourse or repurchase obligations of $ 120.2 million related to transactions with HYGFS.

In connection with the joint venture agreement, the Company also provides a guarantee to WF for 20 % of HYGFS’ debt with WF, such that the Company would become liable under the terms of HYGFS’ debt agreements with WF in the case of default by HYGFS.

At September 30, 2021, loans from WF to HYGFS totaled $ 1.1 billion.

At March 31, 2022, loans from WF to HYGFS totaled $ 1.1 billion.

Although the Company’s contractual guarantee was $ 217.8 million, the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees $ 100.0 million.

1 unchanged sentence

HYGFS has not defaulted under the terms of this debt financing in the past, and although there can be no assurances, the Company is not aware of any circumstances that would cause HYGFS to default in future periods.

The following table includes the exposure amounts related to the Company's guarantees at September 30, 2021:

The following table includes the exposure amounts related to the Company's guarantees at March 31, 2022:

Total recourse or repurchase obligations $ 100.0 $ 120.2

15 unchanged sentences

The Company's equity investments in unconsolidated affiliates recorded on the unaudited condensed consolidated balance sheets are as follows:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

HYGFS $ 17.6 $ 25.2

1 unchanged sentence

Dividends received from unconsolidated affiliates are summarized below:

NINE MONTHS ENDED

THREE MONTHS ENDED

HYGFS $ 10.3 $ 5.1

Summarized financial information for HYGFS and SN is as follows:

THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 30 SEPTEMBER 30

2021 2020 2021 2020

THREE MONTHS ENDED

Revenues $ 106.8 $ 103.2

2 unchanged sentences

Net income $ 14.0 $ 8.2

The Company has an equity investment in a third party valued using a quoted market price in an active market, or Level 1 in the fair value hierarchy.

The Company's investment as of September 30, 2021 and December 31, 2020 was $ 1.9 million and $ 2.1 million, respectively.

The Company has a non-U.S.

equity investment in a third party valued using a quoted market price in an active market, or Level 1 in the fair value hierarchy.

The Company's investment as of March 31, 2022 and December 31, 2021 was $ 1.6 million and $ 1.7 million, respectively.

Any gain or loss on the investment is included on the line "Other, net" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations as follows:

THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 30 SEPTEMBER 30

2021 2020 2021 2020

Gain (loss) on equity investment $ — $ 0.2 $ — $ ( 1.0 )

During the first quarter of 2021, the Company sold its investment in preferred shares of OneH2, Inc.

for $ 15.7 million, including accrued dividends, and recognized a gain of $ 4.6 million.

The gain on the sale of the investment is included on the line "Other, net" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations.

The Company's investment was $ 0.8 million and $ 11.9 million as of September 30, 2021 and December 31, 2020, respectively.

Note 16— Restructuring

During 2020, the Company performed an in-depth global review to help establish a more sustainable long-term cost structure.

As a result, the Company plans to restructure its operations to optimize global commercial operations.

The Company recognized a charge of approximately $ 4.4 million during the year ended December 31, 2020.

These charges primarily related to severance, which was recorded on the line "Selling, general and administrative expenses" in the unaudited condensed consolidated statements of operations.

During the third quarter of 2021, the Company recorded a provision of $ 0.3 million for additional severance.

During the first nine months of 2021, the Company recorded a net benefit of $ 0.1 million as a result of changes in estimates of severance accruals.

In addition, approximately $ 1.2 million and $ 2.5 million of severance payments were paid in the three and nine-months ended September 30, 2021, respectively.

The remaining severance payments are expected to be paid through 2023.

Following is the detail of the cash charges incurred by reporting segment:

Total charges incurred Total charges incurred through December 31, 2020 Total expense (benefit) recorded in the nine months ended September 30, 2021

Americas $ 0.7 $ 1.0 $ ( 0.3 )

EMEA 2.0 2.0 —

JAPIC 1.6 1.4 0.2

$ 4.3 $ 4.4 $ ( 0.1 )

Following is an analysis of the activity related to the liability:

Americas EMEA ` JAPIC Total

Balance at January 1, 2021 $ 1.0 $ 2.0 $ 1.4 $ 4.4

Provision 0.1 — 0.3 0.4

Changes in estimate ( 0.4 ) — ( 0.1 ) ( 0.5 )

Payments ( 0.7 ) ( 0.7 ) ( 1.1 ) ( 2.5 )

Translation — ( 0.1 ) ( 0.1 ) ( 0.2 )

Balance at September 30, 2021 $ — $ 1.2 $ 0.4 $ 1.6

Note 17—Maximal Equity Transfer Agreement

As of September 30, 2021, the Company maintained a 75% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.

("Hyster-Yale Maximal").

On May 26, 2021, the Company signed an Equity Transfer Agreement (the “ETA”) with Y-C Hongkong Holding Co., Limited (“HK Holding Co”), pursuant to which the Company will purchase 15% of the equity interest of Hyster-Yale Maximal from HK Holding Co for an aggregate purchase price of $25.2 million.

After the closing under the ETA, which is anticipated to occur on June 1, 2022 (the “Closing Date"), 10% and 90% of the equity interest of Hyster-Yale Maximal will be owned by HK Holding Co and the Company, respectively.

Under the terms of the ETA, on the Closing Date and prior to each of June 1, 2023 and June 1, 2024, the Company will pay $8.4 million to HK Holding Co.

The closing of the transaction is subject to customary closing conditions and required regulatory approvals.

There is no guarantee the closing will occur either as provided in the ETA or at all.

After the closing, the Company will have an option to purchase HK Holding Co's remaining interest in Hyster-Yale Maximal at any time prior to June 8, 2056 for $16.8 million.

If this option is exercised, the Company will own 100% of the equity interest of Hyster-Yale Maximal.

THREE MONTHS ENDED

Gain on equity investment $ — $ 1.1

The Company has debt investment in a third party, OneH2, Inc.

The Company's investment was $ 0.8 million as of March 31, 2022 and December 31, 2021, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements