What changed in this filing

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Item 1. Financial Statements

2024-08-06 compared with 2024-05-07 · 137 added, 66 removed, 499 unchanged (29% of the section changed)

Financial Statements

HYSTER-YALE MATERIALS HANDLING, INC.

HYSTER-YALE, INC.

AND SUBSIDIARIES

46 unchanged sentences

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC.

HYSTER-YALE, INC.

AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2024 2023 2024 2023

(In millions, except per share data)

9 unchanged sentences

Other, net ( 1.1 ) 2.7 ( 2.1 ) 1.0

5.6 8.0 12.5 14.7

Income Before Income Taxes 90.0 50.8 166.9 86.7

11 unchanged sentences

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC.

HYSTER-YALE, INC.

AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

THREE MONTHS ENDED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2024 2023 2024 2023

(In millions)

7 unchanged sentences

Net income attributable to noncontrolling interests ( 0.2 ) — ( 0.4 ) ( 0.2 )

Net (income) loss attributable to redeemable noncontrolling interests 0.1 ( 0.2 )

Net income attributable to redeemable noncontrolling interests ( 0.1 ) ( 0.2 ) — ( 0.4 )

Accrued dividend to redeemable noncontrolling interests ( 0.3 ) ( 0.3 ) ( 0.5 ) ( 0.5 )

2 unchanged sentences

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC.

HYSTER-YALE, INC.

AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED

SIX MONTHS ENDED

(In millions)

26 unchanged sentences

Cash dividends paid ( 11.8 ) ( 11.1 )

Cash dividends paid to noncontrolling interest ( 1.3 ) ( 1.3 )

Financing fees paid — ( 0.6 )

Purchase of treasury stock ( 9.1 ) ( 0.1 )

6 unchanged sentences

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC.

HYSTER-YALE, INC.

AND SUBSIDIARIES

4 unchanged sentences

(In millions)

Balance, March 31, 2023 $ 14.7 $ 0.1 $ 0.1 $ ( 0.1 ) $ 303.4 $ 173.7 $ ( 125.4 ) $ ( 25.4 ) $ ( 70.9 ) $ 255.5 $ 2.1 $ 257.6

Stock-based compensation — — — — 5.9 — — — — 5.9 — 5.9

Net income 0.2 — — — — 38.3 — — — 38.3 — 38.3

Cash dividends ( 0.9 ) — — — — ( 5.5 ) — — — ( 5.5 ) ( 0.4 ) ( 5.9 )

Accrued dividends 0.3 — — — — — — — — — — —

Current period other comprehensive loss — — — — — — ( 6.0 ) ( 2.9 ) — ( 8.9 ) — ( 8.9 )

Reclassification adjustment to net income — — — — — — — 4.4 0.8 5.2 — 5.2

Foreign currency translation on noncontrolling interest ( 0.4 ) — — — — — — — — — 0.1 0.1

Balance, June 30, 2023 $ 13.9 $ 0.1 $ 0.1 $ ( 0.1 ) $ 309.3 $ 206.5 $ ( 131.4 ) $ ( 23.9 ) $ ( 70.1 ) $ 290.5 $ 1.8 $ 292.3

Balance, March 31, 2024 $ 14.9 $ 0.1 $ 0.1 $ ( 9.1 ) $ 336.9 $ 302.1 $ ( 135.0 ) $ ( 16.8 ) $ ( 66.2 ) $ 412.1 $ 2.3 $ 414.4

Stock-based compensation — — — — 8.2 — — — — 8.2 — 8.2

Net income (loss) 0.1 — — — — 63.3 — — — 63.3 0.2 63.5

Cash dividends ( 0.9 ) — — — — ( 6.1 ) — — — ( 6.1 ) ( 0.4 ) ( 6.5 )

Accrued dividends 0.3 — — — — — — — — — — —

Current period other comprehensive loss — — — — — — ( 9.3 ) ( 11.3 ) — ( 20.6 ) — ( 20.6 )

Reclassification adjustment to net income — — — — — — — 7.9 0.9 8.8 — 8.8

Foreign currency translation on noncontrolling interest ( 0.2 ) — — — — — — — — — 0.1 0.1

Balance, June 30, 2024 $ 14.2 $ 0.1 $ 0.1 $ ( 9.1 ) $ 345.1 $ 359.3 $ ( 144.3 ) $ ( 20.2 ) $ ( 65.3 ) $ 465.7 $ 2.2 $ 467.9

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE, INC.

AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TEMPORARY AND PERMANENT EQUITY

Temporary Equity Permanent Equity

Accumulated Other Comprehensive Income (Loss)

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 Permanent Equity

(In millions)

Balance, December 31, 2022 $ 14.2 $ 0.1 $ 0.1 $ — $ 297.7 $ 152.7 $ ( 137.0 ) $ ( 37.7 ) $ ( 71.5 ) $ 204.4 $ 6.5 $ 210.9

9 unchanged sentences

Foreign currency translation on noncontrolling interest ( 0.3 ) — — — — — — — — — 0.2 0.2

Balance, March 31, 2023 $ 14.7 $ 0.1 $ 0.1 $ ( 0.1 ) $ 303.4 $ 173.7 $ ( 125.4 ) $ ( 25.4 ) $ ( 70.9 ) $ 255.5 $ 2.1 $ 257.6

Balance, June 30, 2023 $ 13.9 $ 0.1 $ 0.1 $ ( 0.1 ) $ 309.3 $ 206.5 $ ( 131.4 ) $ ( 23.9 ) $ ( 70.1 ) $ 290.5 $ 1.8 $ 292.3

Balance, December 31, 2023 $ 14.8 $ 0.1 $ 0.1 $ — $ 327.7 $ 256.3 $ ( 118.3 ) $ ( 9.0 ) $ ( 67.0 ) $ 389.9 $ 2.1 $ 392.0

2 unchanged sentences

Purchase of treasury stock — — — ( 9.1 ) 9.1 — — — — — — —

Net income (loss) ( 0.1 ) — — — — 51.5 — — — 51.5 0.2 51.7

Net income — — — — — 114.8 — — — 114.8 0.4 115.2

Cash dividends ( 0.9 ) — — — — ( 11.8 ) — — — ( 11.8 ) ( 0.4 ) ( 12.2 )

2 unchanged sentences

Reclassification adjustment to net income — — — — — — — 15.2 1.7 16.9 — 16.9

Balance, March 31, 2024 $ 14.9 $ 0.1 $ 0.1 $ ( 9.1 ) $ 336.9 $ 302.1 $ ( 135.0 ) $ ( 16.8 ) $ ( 66.2 ) $ 412.1 $ 2.3 $ 414.4

Foreign currency translation on noncontrolling interest ( 0.2 ) — — — — — — — — — 0.1 0.1

Balance, June 30, 2024 $ 14.2 $ 0.1 $ 0.1 $ ( 9.1 ) $ 345.1 $ 359.3 $ ( 144.3 ) $ ( 20.2 ) $ ( 65.3 ) $ 465.7 $ 2.2 $ 467.9

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC.

HYSTER-YALE, INC.

AND SUBSIDIARIES

2 unchanged sentences

Note 1— Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Hyster-Yale Materials Handling, Inc., a Delaware corporation, and the accounts of Hyster-Yale's wholly owned domestic and international subsidiaries and majority-owned joint ventures (collectively, "Hyster-Yale" or the "Company").

The accompanying unaudited condensed consolidated financial statements include the accounts of Hyster-Yale, Inc., a Delaware corporation, and the accounts of Hyster-Yale's wholly owned domestic and international subsidiaries and majority-owned joint ventures (collectively, "Hyster-Yale" or the "Company").

All intercompany accounts and transactions among the consolidated companies are eliminated in consolidation.

The Company, through its wholly owned operating subsidiary, Hyster-Yale Group, Inc.

("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.

On May 31, 2024, the Company changed its corporate name to Hyster-Yale, Inc.

and the Company’s wholly owned operating subsidiary, Hyster-Yale Group, Inc., changed its corporate name to Hyster-Yale Materials Handling, Inc.

The Company, through its wholly owned operating subsidiary, Hyster-Yale Materials Handling, Inc.

("HYMH"), 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, Northern Ireland, China, Mexico, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.

As of March 31, 2024, the Company owned a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.

As of June 30, 2024, the Company owned a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.

("Hyster-Yale Maximal").

21 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, 2024 and the results of its operations and changes in equity for the three months ended March 31, 2024 and 2023, and the results of its cash flows for the three months ended March 31, 2024 and 2023 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, 2024 and the results of its operations and changes in equity for the three and six months ended June 30, 2024 and 2023, and the results of its cash flows for the six months ended June 30, 2024 and 2023 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, 2023.

2 unchanged sentences

Adopted Accounting Pronouncements

In the first quarter of 2024, 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.

During the first six months of 2024, 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.

Recent Accounting Pronouncements

29 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, 2024 and 2023.

Impairment losses recognized on receivables or contract assets were not significant for the three and six months ended June 30, 2024 and 2023.

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, 2024

JUNE 30, 2024

Lift truck business

6 unchanged sentences

THREE MONTHS ENDED

MARCH 31, 2023

JUNE 30, 2023

Lift truck business

5 unchanged sentences

Total Revenues $ 788.5 $ 200.6 $ 49.6 $ 96.6 $ 1.0 $ ( 45.7 ) $ 1,090.6

SIX MONTHS ENDED

JUNE 30, 2024

Lift truck business

Americas EMEA JAPIC Bolzoni Nuvera Elims Total

Dealer sales $ 1,012.6 $ 320.3 $ 74.3 $ — $ — $ — $ 1,407.2

Direct customer sales 207.8 1.3 — — — — 209.1

Aftermarket sales 363.5 52.9 11.9 — — — 428.3

Other 67.3 12.7 0.2 198.6 0.7 ( 99.5 ) 180.0

Total Revenues $ 1,651.2 $ 387.2 $ 86.4 $ 198.6 $ 0.7 $ ( 99.5 ) $ 2,224.6

SIX MONTHS ENDED

JUNE 30, 2023

Lift truck business

Americas EMEA JAPIC Bolzoni Nuvera Elims Total

Dealer sales $ 776.9 $ 342.6 $ 82.0 $ — $ — $ — $ 1,201.5

Direct customer sales 298.6 4.5 — — — — 303.1

Aftermarket sales 365.9 57.1 15.0 — — — 438.0

Other 33.0 11.3 0.5 195.2 2.6 ( 95.3 ) 147.3

Total Revenues $ 1,474.4 $ 415.5 $ 97.5 $ 195.2 $ 2.6 $ ( 95.3 ) $ 2,089.9

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.

5 unchanged sentences

The Company adjusts estimated revenues at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed.

The Company recognizes revenue for extended warranty and maintenance agreements based on the standalone selling price over the life of the contract, which reflects the costs to perform under these contracts and corresponds with, and thereby depicts, the transfer of control to the customer.

control to the customer.

Bolzoni revenue from external customers is primarily the sale of attachments to customers.

13 unchanged sentences

Foreign currency effect ( 0.2 )

Balance, March 31, 2024 $ 80.7

Balance, June 30, 2024 $ 76.5

Note 4— Business Segments

12 unchanged sentences

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

2024 2023 2024 2023

Revenues from external customers

9 unchanged sentences

Americas $ 104.0 $ 65.2 $ 193.6 $ 112.7

EMEA 4.8 1.1 10.0 3.7

JAPIC ( 5.7 ) ( 3.8 ) ( 11.2 ) ( 6.1 )

12 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

2024 2023 2024 2023

Income before income taxes $ 90.0 $ 50.8 $ 166.9 $ 86.7

9 unchanged sentences

federal statutory rate primarily as a result of recording an additional valuation allowance attributable to the capitalization of research and development expenses under current U.S.

In 2023, the Company's reported income tax rate assumed that a significant portion of its net operating loss carryforwards would be utilized in 2023 along with the release of the associated valuation allowances.

During the first and second quarters of 2024 and 2023, the Company recorded other permanent adjustments primarily relating to state income taxes and non-deductible compensation.

During the second quarter of 2024 and 2023, the Company recognized discrete tax benefits of $ 1.2 million and $ 2.3 million, respectively, resulting from the expiration of the statute of limitations for uncertain tax positions.

Of those amounts, an offsetting pre-tax indemnity receivable was recorded for $ 0.2 million and $ 2.1 million for the second quarter of 2024 and 2023, respectively.

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.

During 2023, the Company's reported income tax rate assumed that a significant portion of its net operating loss carryforwards would be utilized along with the release of the associated valuation allowances.

This release was offset by the capitalization of research and development expenses under U.S.

4 unchanged sentences

OCI Components Amount Reclassified from OCI Affected Line Item

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2024 2023 2024 2023

Gain (loss) on cash flow hedges:

15 unchanged sentences

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

At March 31, 2024, the carrying value and fair value of

revolving credit agreements and long-term debt, excluding finance leases, was $ 448.1 million and $ 447.3 million, respectively.

At June 30, 2024, the carrying value and fair value of revolving credit agreements and long-term debt, excluding finance leases, was $ 475.8 million and $ 475.3 million, respectively.

At December 31, 2023, the carrying value and fair value of revolving credit agreements and long-term debt, excluding finance leases, was $ 466.7 million and $ 464.0 million, respectively.

19 unchanged sentences

Foreign Currency Derivatives:

The Company held forward foreign currency exchange contracts with total notional amounts of $ 0.6 billion at March 31, 2024, primarily denominated in euros, Japanese yen, Chinese renminbi, U.S.

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

The Company held forward foreign currency exchange contracts with total notional amounts of $ 0.8 billion at June 30, 2024, primarily denominated in euros, Japanese yen, U.S.

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

The Company held forward foreign currency exchange contracts with total notional amounts of $ 0.9 billion at December 31, 2023, primarily denominated in euros, Japanese yen, U.S.

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

The fair value of these contracts approximated a net liability of $ 24.0 million and $ 12.2 million at March 31, 2024 and December 31, 2023, respectively.

The fair value of these contracts approximated a net liability of $ 27.6 million and $ 12.2 million at June 30, 2024 and December 31, 2023, 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, 2024, $ 26.1 million of the amount of net deferred loss included in OCI at March 31, 2024 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, 2024, $ 27.4 million of the amount of net deferred loss included in OCI at June 30, 2024 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, 2024 and December 31, 2023:

The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at June 30, 2024 and December 31, 2023:

Notional Amount Average Fixed Rate

MARCH 31 DECEMBER 31 MARCH 31 DECEMBER 31

2024 2023 2024 2023 Term at March 31, 2024

JUNE 30 DECEMBER 31 JUNE 30 DECEMBER 31

2024 2023 2024 2023 Term at June 30, 2024

$ 180.0 $ 180.0 1.65 % 1.65 % Extending to May 2027

$ 5.0 $ 7.5 0.65 % 0.51 % Extending to May 2027

The fair value of all interest rate swap agreements was a net asset of $ 13.6 million and $ 11.9 million at March 31, 2024 and December 31, 2023, respectively.

The fair value of all interest rate swap agreements was a net asset of $ 13.1 million and $ 11.9 million at June 30, 2024 and December 31, 2023, 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, 2024, $ 6.5 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.

Based on market valuations at June 30, 2024, $ 6.5 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

2024 DECEMBER 31

2023 Balance Sheet Location MARCH 31

2023 Balance Sheet Location JUNE 30

2024 DECEMBER 31

18 unchanged sentences

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, 2024 Derivative Liabilities as of March 31, 2024

Derivative Assets as of June 30, 2024 Derivative Liabilities as of June 30, 2024

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 2024 2023 2024 2023 2024 2023 2024 2023

18 unchanged sentences

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

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2024 2023 2024 2023

Interest cost $ 0.6 $ 0.7 $ 1.1 $ 1.3

16 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, 2024 and December 31, 2023, 52 % and 49 %, 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, 2024 and December 31, 2023, 52 % and 49 %, 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.

3 unchanged sentences

Note 10— Product Warranties

The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 hours .

For certain series of lift trucks, the Company provides a standard warranty of one to two years or 2,000 or 4,000 hours .

For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 hours .

The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 operating hours .

For certain series of lift trucks, the Company provides a standard warranty of one to two years or 2,000 or 4,000 operating hours .

For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 operating hours .

The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized.

In addition, the Company sells separately priced, extended warranty agreements for its lift trucks, which generally provide a warranty for an additional two to five years or up to 2,400 to 10,000 hours .

The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company does business.

10 unchanged sentences

Foreign currency effect ( 1.0 )

Balance at March 31, 2024 $ 73.2

Balance at June 30, 2024 $ 74.6

Note 11— Contingencies

Various legal and regulatory proceedings and claims have been or may be asserted against the Company relating to the conduct of its businesses, including product liability, environmental and other claims.

These proceedings and claims are incidental to the ordinary course of business.

These proceedings and claims are incidental to the

ordinary course of business.

Management believes that it has meritorious defenses and will vigorously defend the Company in these actions.

4 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, 2024 and December 31, 2023 were $ 161.6 million and $ 162.4 million, respectively.

As of March 31, 2024, 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, 2024 and December 31, 2023 were $ 172.7 million and $ 162.4 million, respectively.

As of June 30, 2024, 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, 2024 was approximately $ 218.4 million based on Company estimates.

The fair value of collateral held at June 30, 2024 was approximately $ 227.0 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, 2024, 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, 2024, 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 $ 33.2 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5 % of their original loan balance, or $ 14.0 million as of March 31, 2024.

The $ 33.2 million is included in the $ 161.6 million of total amounts subject to recourse or repurchase obligations at March 31, 2024.

Under this agreement, losses related to $ 46.3 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5 % of their original loan balance, or $ 16.5 million as of June 30, 2024.

The $ 46.3 million is included in the $ 172.7 million of total amounts subject to recourse or repurchase obligations at June 30, 2024.

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 March 31, 2024, approximately $ 152.5 million of the Company's total recourse or repurchase obligations of $ 161.6 million related to transactions with HYGFS.

At June 30, 2024, approximately $ 166.2 million of the Company's total recourse or repurchase obligations of $ 172.7 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, 2024, loans from WF to HYGFS totaled $ 1.3 billion.

At June 30, 2024, loans from WF to HYGFS totaled $ 1.4 billion.

Although the Company’s contractual guarantee was $ 270.7 million, the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees $ 166.2 million.

10 unchanged sentences

The Company's ownership in SN is also accounted for using the equity method of accounting and is included in the JAPIC segment.

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.

statements of operations.

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, 2024 December 31, 2023

June 30, 2024 December 31, 2023

HYGFS $ 23.4 $ 22.2

1 unchanged sentence

Dividends received from unconsolidated affiliates are summarized below:

THREE MONTHS ENDED

SIX MONTHS ENDED

HYGFS $ 4.4 $ 10.5

Summarized financial information for HYGFS and SN is as follows:

THREE MONTHS ENDED

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

2024 2023 2024 2023

Revenues $ 103.2 $ 121.3 $ 211.3 $ 229.3

3 unchanged sentences

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

The Company's investment was $ 0.8 million as of each March 31, 2024 and December 31, 2023.

The Company's investment was $ 0.8 million as of each June 30, 2024 and December 31, 2023.

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