What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-08-02 compared with 2022-05-03 · 170 added, 96 removed, 476 unchanged (36% of the section changed)

15 unchanged sentences

Deferred Income Taxes 5.1 3.7

Investment in Unconsolidated Affiliates 61.1 71.7

Investments in Unconsolidated Affiliates 55.5 71.7

Other Non-current Assets 105.5 107.0

16 unchanged sentences

Total Liabilities 1,829.4 1,587.2

Temporary Equity

Redeemable Noncontrolling Interest 15.9 —

Stockholders' Equity

14 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2022 2021 2022 2021

(In millions, except per share data)

9 unchanged sentences

Other, net 4.1 5.8 4.9 ( 0.4 )

6.1 6.0 9.1 0.6

Income (Loss) Before Income Taxes ( 21.8 ) ( 0.1 ) ( 43.1 ) 8.4

Income tax provision 2.9 2.4

Income tax benefit ( 3.1 ) ( 2.4 ) ( 0.2 ) —

Net Income (Loss) ( 18.7 ) 2.3 ( 42.9 ) 8.4

10 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2022 2021 2022 2021

(In millions)

5 unchanged sentences

Reclassification of pension into earnings 1.2 1.1 2.4 2.2

Comprehensive Loss $ ( 27.7 ) $ ( 32.5 )

Comprehensive Income (Loss) $ ( 98.0 ) $ 18.7 $ ( 125.7 ) $ ( 13.8 )

Other comprehensive income (loss) attributable to noncontrolling interests

1 unchanged sentence

Foreign currency translation adjustment attributable to noncontrolling interests 1.5 ( 0.9 ) 1.5 0.1

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

Comprehensive Income (Loss) Attributable to Stockholders $ ( 97.2 ) $ 17.4 $ ( 125.7 ) $ ( 14.6 )

See notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED

SIX MONTHS ENDED

(In millions)

21 unchanged sentences

Proceeds from the sale of investment — 15.7

Purchase of noncontrolling interest ( 8.4 ) —

Net cash provided by (used for) investing activities ( 22.9 ) 0.8

4 unchanged sentences

Cash dividends paid ( 10.9 ) ( 10.7 )

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

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

Financing fees paid — ( 7.6 )

Net cash provided by financing activities 33.5 37.5

Effect of exchange rate changes on cash ( 0.7 ) ( 1.5 )

Cash and Cash Equivalents

Decrease for the period ( 0.4 ) ( 48.4 )

Increase (decrease) for the period 10.1 ( 63.9 )

Balance at the beginning of the period 65.5 151.4

3 unchanged sentences

AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TEMPORARY AND PERMANENT EQUITY

Temporary Equity Permanent 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

Redeemable Noncontrolling Interest 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

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

Stock-based compensation — — — — 0.2 — — — — 0.2 — 0.2

2 unchanged sentences

Cash dividends — — — — — ( 5.4 ) — — — ( 5.4 ) ( 0.2 ) ( 5.6 )

Current period other comprehensive income — — — — — — 12.0 5.0 — 17.0 — 17.0

Reclassification adjustment to net income — — — — — — — ( 1.7 ) 1.1 ( 0.6 ) — ( 0.6 )

Foreign currency translation on noncontrolling interest — — — — — — — — — — 0.9 0.9

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

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

Stock-based compensation — — — — 0.9 — — — — 0.9 — 0.9

Stock issued under stock compensation plans — — — — 0.1 — — — — 0.1 — 0.1

Net income (loss) — — — — — ( 19.4 ) — — — ( 19.4 ) 0.7 ( 18.7 )

Cash dividends — — — — — ( 5.5 ) — — — ( 5.5 ) ( 0.2 ) ( 5.7 )

Current period other comprehensive loss — — — — — — ( 40.3 ) ( 45.9 ) — ( 86.2 ) — ( 86.2 )

Reclassification adjustment to net income (loss) — — — — — — — 5.7 1.2 6.9 — 6.9

Purchase of noncontrolling interest — — — — ( 12.8 ) — — — — ( 12.8 ) ( 11.1 ) ( 23.9 )

Reclassification from permanent equity to temporary equity 15.9 — — — ( 9.3 ) — — — — ( 9.3 ) ( 6.6 ) ( 15.9 )

Foreign currency translation on noncontrolling interest — — — — — — — — — — ( 1.5 ) ( 1.5 )

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, June 30, 2022 $ 15.9 $ 0.1 $ 0.1 $ — $ 291.2 $ 193.3 $ ( 142.6 ) $ ( 72.3 ) $ ( 70.2 ) $ 199.6 $ 7.9 $ 207.5

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC.

AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TEMPORARY AND PERMANENT EQUITY

Temporary Equity Permanent Equity

Accumulated Other Comprehensive Income (Loss)

(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 — — — 0.8 ( 0.8 ) — — — — — — —

Net income — — — — — 7.5 — — — 7.5 0.9 8.4

Cash dividends — — — — — ( 10.7 ) — — — ( 10.7 ) ( 0.2 ) ( 10.9 )

Current period other comprehensive loss — — — — — — ( 12.8 ) ( 9.3 ) — ( 22.1 ) — ( 22.1 )

Reclassification adjustment to net income — — — — — — — ( 2.3 ) 2.2 ( 0.1 ) — ( 0.1 )

Foreign currency translation on noncontrolling interest — — — — — — — — — — ( 0.1 ) ( 0.1 )

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

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

Stock-based compensation — — — — 2.6 — — — — 2.6 — 2.6

Stock issued under stock compensation plans — — — 4.5 ( 4.4 ) — — — — 0.1 — 0.1

Net income (loss) — — — — — ( 44.4 ) — — — ( 44.4 ) 1.5 ( 42.9 )

2 unchanged sentences

Reclassification adjustment to net income (loss) — — — — — — — 7.4 2.4 9.8 — 9.8

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

Purchase of noncontrolling interest — — — — ( 12.8 ) — — — — ( 12.8 ) ( 11.1 ) ( 23.9 )

Reclassification from permanent equity to temporary equity 15.9 — — — ( 9.3 ) — — — — ( 9.3 ) ( 6.6 ) ( 15.9 )

Foreign currency translation on noncontrolling interest — — — — — — — — — — ( 1.5 ) ( 1.5 )

Balance, June 30, 2022 $ 15.9 $ 0.1 $ 0.1 $ — $ 291.2 $ 193.3 $ ( 142.6 ) $ ( 72.3 ) $ ( 70.2 ) $ 199.6 $ 7.9 $ 207.5

See notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2022

JUNE 30, 2022

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

26 unchanged sentences

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 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.

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 June 30, 2022 and the results of its operations and changes in equity for the three and six months ended June 30, 2022 and 2021, and the results of its cash flows for the six months ended June 30, 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

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.

In 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:

1 unchanged sentence

ASU 2020-04, Reference Rate Reform (Topic 848) The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.

From the date of issuance through December 31, 2022 The Company is currently evaluating the guidance and the effect on its financial position, results of operations, cash flows and related disclosures.

From the date of issuance through December 31, 2022 The Company does not expect the guidance to have a material effect on its financial position, results of operations, cash flows and related disclosures.

Note 3— Revenue

18 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 months ended March 31, 2022 and 2021.

Impairment losses recognized on receivables or contract assets were not significant for the three and six months ended June 30, 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

MARCH 31, 2022

JUNE 30, 2022

Lift truck business

6 unchanged sentences

THREE MONTHS ENDED

MARCH 31, 2021

JUNE 30, 2021

Lift truck business

5 unchanged sentences

Total Revenues $ 479.1 $ 175.1 $ 65.0 $ 84.8 $ 0.3 $ ( 38.7 ) $ 765.6

SIX MONTHS ENDED

JUNE 30, 2022

Lift truck business

Americas EMEA JAPIC Bolzoni Nuvera Elims Total

Dealer sales $ 591.5 $ 281.2 $ 102.8 $ — $ — $ — $ 975.5

Direct customer sales 219.4 9.4 — — — — 228.8

Aftermarket sales 292.3 52.8 13.6 — — — 358.7

Other 51.1 11.1 0.2 181.5 0.9 ( 84.8 ) 160.0

Total Revenues $ 1,154.3 $ 354.5 $ 116.6 $ 181.5 $ 0.9 $ ( 84.8 ) $ 1,723.0

SIX MONTHS ENDED

JUNE 30, 2021

Lift truck business

Americas EMEA JAPIC Bolzoni Nuvera Elims Total

Dealer sales $ 438.7 $ 277.2 $ 109.2 $ — $ — $ — $ 825.1

Direct customer sales 218.2 3.4 — — — — 221.6

Aftermarket sales 223.1 53.7 15.9 — — — 292.7

Other 58.8 11.5 0.4 164.3 0.3 ( 76.9 ) 158.4

Total Revenues $ 938.8 $ 345.8 $ 125.5 $ 164.3 $ 0.3 $ ( 76.9 ) $ 1,497.8

Dealer sales are recognized when the Company transfers control based on the shipping terms of the contract, which is generally when the truck is shipped from the manufacturing facility to the dealer.

8 unchanged sentences

In these transactions, the Company transfers control and recognizes revenue according to the shipping terms of the contract.

In the United States, Bolzoni also has revenue for sales of lift truck components to Lift Truck plants.

Nuvera's revenues include development funding from third-party development agreements and the sale of fuel cell stacks and engines to third parties and to Lift Truck.

In the United States, Bolzoni also has revenue for sales of lift truck components to the lift truck business.

Nuvera's revenues include development funding from third-party development agreements and the sale of fuel cell stacks and engines to third parties and to the lift truck business.

In all revenue transactions, the Company receives cash equal to the invoice price and amount of consideration received and the revenue recognized may vary with changes in marketing incentives.

3 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.

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

Deferred Revenue

3 unchanged sentences

Foreign currency effect 0.1

Balance, March 31, 2022 $ 154.6

Balance, June 30, 2022 $ 182.1

Note 4— Business Segments

1 unchanged sentence

the Americas, EMEA and JAPIC.

Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and its corporate headquarters.

Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and the corporate headquarters.

EMEA includes operations in Europe, the Middle East and Africa.

6 unchanged sentences

Intercompany sales between Nuvera, Bolzoni and the lift truck business have been eliminated.

Operating profit is the measure of segment profit or loss.

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

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2022 2021 2022 2021

Revenues from external customers

4 unchanged sentences

Bolzoni 86.4 84.8 181.5 164.3

Eliminations ( 47.2 ) ( 38.2 )

Total $ 827.6 $ 732.2

Gross profit (loss)

Americas $ 67.0 $ 75.3

EMEA 14.4 23.5

JAPIC 4.5 6.6

Lift truck business 85.9 105.4

Bolzoni 18.8 16.4

Nuvera 0.3 0.3 0.9 0.3

10 unchanged sentences

Total $ ( 15.7 ) $ 5.9 $ ( 34.0 ) $ 9.0

Net income (loss) attributable to stockholders

Americas $ 1.1 $ 9.5

EMEA ( 7.0 ) 0.9

JAPIC ( 4.0 ) ( 2.2 )

Lift truck business ( 9.9 ) 8.2

Bolzoni 1.3 0.6

Nuvera ( 8.1 ) ( 3.8 )

Eliminations ( 8.3 ) 0.6

Total $ ( 25.0 ) $ 5.6

Note 5— Income Taxes

1 unchanged sentence

federal, state and local, and foreign income taxes and is generally based on the application of a forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss.

In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings or losses, taxing jurisdictions in which the earnings or losses will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards, carrybacks, capital loss

carryforwards, and available tax planning alternatives.

determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings or losses, taxing jurisdictions in which the earnings or losses will be generated, the impact of state and local income taxes, the Company's ability to use tax credits and net operating loss carryforwards, carrybacks, capital loss carryforwards, and available tax planning alternatives.

Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or the tax effect of other unusual or nonrecurring transactions or adjustments are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual effective income tax rate.

2 unchanged sentences

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

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2022 2021 2022 2021

Income (loss) before income taxes $ ( 21.8 ) $ ( 0.1 ) $ ( 43.1 ) $ 8.4

5 unchanged sentences

Discrete items ( 4.5 ) ( 2.1 ) ( 5.3 ) ( 2.2 )

Income tax provision $ 2.9 $ 2.4

Reported income tax rate ( 13.6 ) % 28.2 %

Income tax benefit $ ( 3.1 ) $ ( 2.4 ) $ ( 0.2 ) $ —

Reported income tax rate 14.2 % n.m.

- not meaningful

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.

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

During the second quarter of 2022 and 2021, the Company recognized discrete tax benefits of $3.8 million and $3.3 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.

Additionally, the Company has recognized a discrete tax benefit of $0.7 million in the second quarter of 2022 for the release of uncertain tax positions that were recorded when the Company acquired Bolzoni.

During the second quarter of 2021, the Company recognized a discrete tax charge of $1.4 million for the tax impact of the favorable adjustment for social contribution taxes previously imposed on material purchases in Brazil.

Note 6— Reclassifications from OCI

The following table summarizes reclassifications out of Accumulated Other Comprehensive Income ("OCI") as recorded in the unaudited condensed consolidated statements of operations:

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

THREE MONTHS ENDED

OCI Components Amount Reclassified from OCI Affected Line Item

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2022 2021 2022 2021

Gain (loss) on cash flow hedges:

2 unchanged sentences

Total before tax ( 5.6 ) 2.1 ( 7.2 ) 2.8 Income (loss) before income taxes

Tax benefit ( 0.1 ) ( 0.1 ) Income tax provision

Tax benefit ( 0.1 ) ( 0.4 ) ( 0.2 ) ( 0.5 ) Income tax provision (benefit)

Net of tax $ ( 5.7 ) $ 1.7 $ ( 7.4 ) $ 2.3 Net income (loss)

2 unchanged sentences

Total before tax ( 1.2 ) ( 1.4 ) ( 2.4 ) ( 2.8 ) Income (loss) before income taxes

Tax expense — 0.3 Income tax provision

Tax expense — 0.3 — 0.6 Income tax provision (benefit)

Net of tax $ ( 1.2 ) $ ( 1.1 ) $ ( 2.4 ) $ ( 2.2 ) Net income (loss)

4 unchanged sentences

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.

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

At June 30, 2022, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $ 536.0 million and $ 549.4 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.

22 unchanged sentences

Foreign Currency Derivatives:

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.

The Company held forward foreign currency exchange contracts with total notional amounts of $ 1.1 billion at June 30, 2022, primarily denominated in euros, Japanese yen, U.S.

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

1 unchanged sentence

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

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.

The fair value of these contracts approximated a net liability of $ 77.6 million and $ 26.7 million at June 30, 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 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.

Based on market valuations at June 30, 2022, $ 42.6 million of the amount of net deferred loss included in OCI at June 30, 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:

1 unchanged sentence

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 March 31, 2022 and December 31, 2021:

The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at June 30, 2022 and December 31, 2021:

Notional Amount Average Fixed Rate

MARCH 31 DECEMBER 31 MARCH 31 DECEMBER 31

2022 2021 2022 2021 Term at March 31, 2022

JUNE 30 DECEMBER 31 JUNE 30 DECEMBER 31

2022 2021 2022 2021 Term at June 30, 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

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.

$ 21.8 $ 16.0 0.18 % ( 0.14 ) % Extending to May 2027

The fair value of all interest rate swap agreements was a net asset of $ 9.9 million and a net liability $ 3.2 million at June 30, 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 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.

Based on market valuations at June 30, 2022, $ 1.7 million of the amount included in OCI as net deferred gain is expected to be reclassified as income 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 MARCH 31

Balance Sheet Location JUNE 30

2022 DECEMBER 31

2021 Balance Sheet Location MARCH 31

2021 Balance Sheet Location JUNE 30

2022 DECEMBER 31

3 unchanged sentences

Current Prepaid expenses and other $ 2.6 $ — Prepaid expenses and other $ — $ —

Current Other current liabilities — 0.3 Other current liabilities — 2.2

Other current liabilities — 0.3 Other current liabilities — 2.2

Long-term Other non-current assets 7.3 0.1 Other non-current assets — 0.1

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

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

Foreign currency exchange contracts

Current Other current liabilities 3.0 3.6 Other current liabilities 44.2 17.0

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

Other long-term liabilities 1.7 1.0 Other long-term liabilities 15.3 13.2

Long-term Other long-term liabilities 0.8 1.0 Other long-term liabilities 34.0 13.2

Total derivatives designated as hedging instruments $ 13.7 $ 5.6 $ 78.2 $ 34.4

2 unchanged sentences

Foreign currency exchange contracts

Current Other current liabilities 2.1 1.1 Other current liabilities 7.6 2.2

Current Prepaid expenses and other 2.6 — Prepaid expenses and other 0.2 —

Other current liabilities 2.6 1.1 Other current liabilities 8.2 2.2

Total derivatives not designated as hedging instruments $ 5.2 $ 1.1 $ 8.4 $ 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 March 31, 2022 Derivative Liabilities as of March 31, 2022

Derivative Assets as of June 30, 2022 Derivative Liabilities as of June 30, 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 THREE MONTHS ENDED

MARCH 31 MARCH 31

THREE MONTHS ENDED SIX MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

Derivatives Designated as Hedging Instruments 2022 2021 2022 2021 2022 2021 2022 2021

16 unchanged sentences

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.

Service cost for the Company's pension plans is reported in operating profit.

Service cost for the Company's pension plan is reported in operating profit.

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

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2022 2021 2022 2021

Interest cost $ 0.4 $ 0.3 $ 0.8 $ 0.7

17 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 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.

At June 30, 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.

19 unchanged sentences

Payments made ( 13.8 )

Balance at March 31, 2022 $ 62.2

Foreign currency effect ( 1.1 )

Balance at June 30, 2022 $ 61.0

Note 11— Contingencies

7 unchanged sentences

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 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.

Total amounts subject to recourse or repurchase obligations at June 30, 2022 and December 31, 2021 were $ 130.7 million and $ 106.8 million, respectively.

As of June 30, 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 fair value of collateral held at June 30, 2022 was approximately $ 194.1 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 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;

As of June 30, 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 $ 21.3 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.

Under this agreement, losses related to $ 21.5 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5 % of their original loan balance, or $ 10.9 million as of June 30, 2022.

The $ 21.5 million is included in the $ 130.7 million of total amounts subject to recourse or repurchase obligations at June 30, 2022.

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

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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 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.

At June 30, 2022, approximately $ 108.2 million of the Company's total recourse or repurchase obligations of $ 130.7 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 March 31, 2022, loans from WF to HYGFS totaled $ 1.1 billion.

At June 30, 2022, loans from WF to HYGFS totaled $ 1.1 billion.

Although the Company’s contractual guarantee was $ 227.5 million, the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees $ 108.2 million.

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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 March 31, 2022:

The following table includes the exposure amounts related to the Company's guarantees at June 30, 2022:

Total recourse or repurchase obligations $ 108.2 $ 130.7

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

The Company's equity investments are included on the line “Investment in Unconsolidated Affiliates” in the unaudited condensed consolidated balance sheets.

The Company's equity investments are included on the line “Investments in Unconsolidated Affiliates” in the unaudited condensed consolidated balance sheets.

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

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

HYGFS $ 16.0 $ 25.2

1 unchanged sentence

Dividends received from unconsolidated affiliates are summarized below:

THREE MONTHS ENDED

SIX MONTHS ENDED

HYGFS $ 14.9 $ 5.1

Summarized financial information for HYGFS and SN is as follows:

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2022 2021 2022 2021

Revenues $ 103.7 $ 106.7 $ 210.5 $ 209.9

4 unchanged sentences

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.

The Company's investment as of June 30, 2022 and December 31, 2021 was $ 1.0 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

Gain on equity investment $ — $ 1.1

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2022 2021 2022 2021

Loss on equity investment $ 0.6 $ 1.1 $ 0.6 $ —

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.

The Company's investment was $ 0.8 million as of June 30, 2022 and December 31, 2021, respectively.

Note 14— Maximal Equity Transfer Agreement

As of June 30, 2022, the Company maintained a 90 % majority interest in Hyster-Yale Maximal Forklift (Zheijang) Co., Ltd.

("Hyster-Yale Maximal").

During 2021, the Company signed an Equity Transfer Agreement ("ETA") with Y-C Hongkong Holding Co., Limited (“HK Holding Co”).

In June 2022, the Company purchased 15 % of the equity interest of Hyster-Yale Maximal from HK Holding Co for an aggregate purchase price of $ 25.2 million, which will be paid in annual installments of $ 8.4 million beginning in June 2022 through June 2024.

Subsequently, the Company has 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.

In addition, under the provisions of the ETA, HK Holding Co maintains a put option by which the Company could be required to exercise its purchase option.

As one of the factors that could trigger the put option is outside of the Company’s control, the remaining 10% purchase option is considered contingently redeemable.

Accordingly, the redeemable noncontrolling interest is not considered to be a component of stockholders’ equity and instead is reported as temporary equity in the accompanying unaudited condensed consolidated balance sheet.

Because the occurrence of the event that would trigger the put option is not probable of occurring, the Company will continue to attribute the 10% portion of earnings and losses, as well as any dividends declared, to the noncontrolling interest after the closing date of the ETA.

As of the closing date of the ETA, the Company recorded the estimated fair value of the purchase option of $16.8 million as redeemable noncontrolling interest.

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