x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware (State of Incorporation) | 34-1531521 (IRS Employer Identification No.) |
YES | x | NO | o |
YES | x | NO | o |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller Reporting Company o |
YES | o | NO | x |
The Exhibit Index begins on page 66. |
Guarantor | State or other jurisdiction of incorporation or organization | I.R.S. employer identification number |
CMI Terex Corporation | Oklahoma | 73-0519810 |
Fantuzzi Noell USA, Inc. | Illinois | 36-3865231 |
Genie Holdings, Inc. | Washington | 91-1666966 |
Genie Industries, Inc. | Washington | 91-0815489 |
Genie International, Inc. | Washington | 91-1975116 |
Powerscreen Holdings USA Inc. | Delaware | 61-1265609 |
Powerscreen International LLC | Delaware | 61-1340898 |
Powerscreen North America Inc. | Delaware | 61-1340891 |
Powerscreen USA, LLC | Kentucky | 31-1515625 |
Terex Advance Mixer, Inc. | Delaware | 06-1444818 |
Terex Aerials, Inc. | Wisconsin | 39-1028686 |
Terex Financial Services, Inc. | Delaware | 45-0497096 |
Terex South Dakota, Inc. | South Dakota | 41-1603748 |
Terex USA, LLC | Delaware | 75-3262430 |
Terex Utilities, Inc. | Oregon | 93-0557703 |
Terex Washington, Inc. | Washington | 91-1499412 |
• | our business is cyclical and weak general economic conditions affect the sales of our products and financial results; |
• | our ability to successfully integrate acquired businesses; |
• | our need to comply with restrictive covenants contained in our debt agreements; |
• | our ability to generate sufficient cash flow to service our debt obligations and operate our business; |
• | our ability to access the capital markets to raise funds and provide liquidity; |
• | our business is sensitive to government spending; |
• | our business is highly competitive and is affected by our cost structure, pricing, product initiatives and other actions taken by competitors; |
• | our retention of key management personnel; |
• | the financial condition of suppliers and customers, and their continued access to capital; |
• | our providing financing and credit support for some of our customers; |
• | we may experience losses in excess of recorded reserves; |
• | the carrying value of our goodwill and other indefinite-lived intangible assets could become impaired; |
• | our ability to obtain parts and components from suppliers on a timely basis at competitive prices; |
• | our business is global and subject to changes in exchange rates between currencies, commodity price changes, regional economic conditions and trade restrictions; |
• | our operations are subject to a number of potential risks that arise from operating a multinational business, including compliance with changing regulatory environments, the Foreign Corrupt Practices Act and other similar laws, and political instability; |
• | a material disruption to one of our significant facilities; |
• | possible work stoppages and other labor matters; |
• | compliance with changing laws and regulations, particularly environmental and tax laws and regulations; |
• | litigation, product liability claims, intellectual property claims, class action lawsuits and other liabilities; |
• | our ability to comply with an injunction and related obligations imposed by the United States Securities and Exchange Commission (“SEC”); |
• | disruption or breach in our information technology systems; and |
• | other factors. |
Page No. | ||
TEREX CORPORATION AND SUBSIDIARIES | ||
PART I. | FINANCIAL INFORMATION |
ITEM 1. | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 1,056.4 | $ | 1,255.4 | $ | 3,468.4 | $ | 3,854.1 | |||||||
Cost of goods sold | (872.5 | ) | (1,003.0 | ) | (2,860.7 | ) | (3,098.2 | ) | |||||||
Gross profit | 183.9 | 252.4 | 607.7 | 755.9 | |||||||||||
Selling, general and administrative expenses | (144.3 | ) | (160.3 | ) | (483.4 | ) | (489.4 | ) | |||||||
Income (loss) from operations | 39.6 | 92.1 | 124.3 | 266.5 | |||||||||||
Other income (expense) | |||||||||||||||
Interest income | 1.0 | 1.0 | 3.3 | 2.8 | |||||||||||
Interest expense | (25.4 | ) | (25.7 | ) | (75.6 | ) | (82.5 | ) | |||||||
Loss on early extinguishment of debt | — | — | (0.4 | ) | — | ||||||||||
Other income (expense) – net | (1.3 | ) | (11.5 | ) | (13.3 | ) | (17.8 | ) | |||||||
Income (loss) from continuing operations before income taxes | 13.9 | 55.9 | 38.3 | 169.0 | |||||||||||
(Provision for) benefit from income taxes | 19.3 | (25.6 | ) | 82.5 | (64.5 | ) | |||||||||
Income (loss) from continuing operations | 33.2 | 30.3 | 120.8 | 104.5 | |||||||||||
Income (loss) from discontinued operations – net of tax | 64.1 | 15.8 | (33.4 | ) | 26.4 | ||||||||||
Gain (loss) on disposition of discontinued operations – net of tax | — | (1.2 | ) | 3.5 | 1.5 | ||||||||||
Net income (loss) | 97.3 | 44.9 | 90.9 | 132.4 | |||||||||||
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.1 | — | 0.1 | 0.1 | |||||||||||
Net loss (income) from discontinued operations attributable to noncontrolling interest | (0.6 | ) | (1.3 | ) | 0.1 | (3.1 | ) | ||||||||
Net income (loss) attributable to Terex Corporation | $ | 96.8 | $ | 43.6 | $ | 91.1 | $ | 129.4 | |||||||
Amounts attributable to Terex Corporation Common Stockholders: | |||||||||||||||
Income (loss) from continuing operations | $ | 33.3 | $ | 30.3 | $ | 120.9 | $ | 104.6 | |||||||
Income (loss) from discontinued operations – net of tax | 63.5 | 14.5 | (33.3 | ) | 23.3 | ||||||||||
Gain (loss) on disposition of discontinued operations – net of tax | — | (1.2 | ) | 3.5 | 1.5 | ||||||||||
Net income (loss) attributable to Terex Corporation | $ | 96.8 | $ | 43.6 | $ | 91.1 | $ | 129.4 | |||||||
Basic Earnings (Loss) per Share Attributable to Terex Corporation Common Stockholders: | |||||||||||||||
Income (loss) from continuing operations | $ | 0.31 | $ | 0.28 | $ | 1.12 | $ | 0.98 | |||||||
Income (loss) from discontinued operations – net of tax | 0.59 | 0.13 | (0.31 | ) | 0.22 | ||||||||||
Gain (loss) on disposition of discontinued operations – net of tax | — | (0.01 | ) | 0.03 | 0.01 | ||||||||||
Net income (loss) attributable to Terex Corporation | $ | 0.90 | $ | 0.40 | $ | 0.84 | $ | 1.21 | |||||||
Diluted Earnings (Loss) per Share Attributable to Terex Corporation Common Stockholders: | |||||||||||||||
Income (loss) from continuing operations | $ | 0.31 | $ | 0.28 | $ | 1.10 | $ | 0.95 | |||||||
Income (loss) from discontinued operations – net of tax | 0.58 | 0.13 | (0.30 | ) | 0.22 | ||||||||||
Gain (loss) on disposition of discontinued operations – net of tax | — | (0.01 | ) | 0.03 | 0.01 | ||||||||||
Net income (loss) attributable to Terex Corporation | $ | 0.89 | $ | 0.40 | $ | 0.83 | $ | 1.18 | |||||||
Weighted average number of shares outstanding in per share calculation | |||||||||||||||
Basic | 107.6 | 108.5 | 108.5 | 107.0 | |||||||||||
Diluted | 108.6 | 109.2 | 109.3 | 109.7 | |||||||||||
Comprehensive income (loss) | $ | 99.8 | $ | (26.6 | ) | $ | 86.7 | $ | (58.0 | ) | |||||
Comprehensive loss (income) attributable to noncontrolling interest | (0.6 | ) | (1.2 | ) | 0.3 | (2.9 | ) | ||||||||
Comprehensive income (loss) attributable to Terex Corporation | $ | 99.2 | $ | (27.8 | ) | $ | 87.0 | $ | (60.9 | ) | |||||
Dividends declared per common share | $ | 0.07 | $ | 0.06 | $ | 0.21 | $ | 0.18 |
September 30, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 248.8 | $ | 371.2 | |||
Trade receivables (net of allowance of $16.2 and $20.4 at September 30, 2016 and December 31, 2015, respectively) | 656.8 | 703.3 | |||||
Inventories | 978.4 | 1,063.6 | |||||
Prepaid and other current assets | 229.6 | 252.5 | |||||
Current assets held for sale | 806.8 | 749.6 | |||||
Total current assets | 2,920.4 | 3,140.2 | |||||
Non-current assets | |||||||
Property, plant and equipment – net | 355.8 | 371.9 | |||||
Goodwill | 448.7 | 459.1 | |||||
Intangible assets – net | 21.3 | 22.6 | |||||
Other assets | 591.7 | 461.7 | |||||
Non-current assets held for sale | 1,231.4 | 1,160.5 | |||||
Total assets | $ | 5,569.3 | $ | 5,616.0 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Notes payable and current portion of long-term debt | $ | 10.5 | $ | 66.4 | |||
Trade accounts payable | 474.5 | 560.7 | |||||
Accrued compensation and benefits | 110.5 | 128.5 | |||||
Accrued warranties and product liability | 62.2 | 51.5 | |||||
Customer advances | 42.1 | 29.6 | |||||
Other current liabilities | 278.6 | 175.9 | |||||
Current liabilities held for sale | 497.0 | 446.0 | |||||
Total current liabilities | 1,475.4 | 1,458.6 | |||||
Non-current liabilities | |||||||
Long-term debt, less current portion | 1,653.0 | 1,729.8 | |||||
Retirement plans | 150.2 | 157.0 | |||||
Other non-current liabilities | 62.1 | 60.1 | |||||
Non-current liabilities held for sale | 315.0 | 298.5 | |||||
Total liabilities | 3,655.7 | 3,704.0 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity | |||||||
Common stock, $.01 par value – authorized 300.0 shares; issued 129.6 and 128.8 shares at September 30, 2016 and December 31, 2015, respectively | 1.3 | 1.3 | |||||
Additional paid-in capital | 1,291.0 | 1,273.3 | |||||
Retained earnings | 2,172.5 | 2,104.6 | |||||
Accumulated other comprehensive income (loss) | (653.8 | ) | (649.6 | ) | |||
Less cost of shares of common stock in treasury – 24.6 and 21.1 shares at September 30, 2016 and December 31, 2015 | (933.3 | ) | (852.2 | ) | |||
Total Terex Corporation stockholders’ equity | 1,877.7 | 1,877.4 | |||||
Noncontrolling interest | 35.9 | 34.6 | |||||
Total stockholders’ equity | 1,913.6 | 1,912.0 | |||||
Total liabilities and stockholders’ equity | $ | 5,569.3 | $ | 5,616.0 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Operating Activities | |||||||
Net income (loss) | $ | 90.9 | $ | 132.4 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 77.4 | 99.8 | |||||
(Gain) loss on disposition of discontinued operations | (3.5 | ) | (1.5 | ) | |||
Deferred taxes | (101.1 | ) | (17.4 | ) | |||
(Gain) loss on sale of assets | 2.4 | (0.9 | ) | ||||
Stock-based compensation expense | 28.2 | 31.9 | |||||
Changes in operating assets and liabilities (net of effects of acquisitions and divestitures): | |||||||
Trade receivables | (19.2 | ) | (145.1 | ) | |||
Inventories | (31.5 | ) | (139.8 | ) | |||
Trade accounts payable | (105.4 | ) | 37.2 | ||||
Customer advances | 49.1 | (35.3 | ) | ||||
Other assets and liabilities | 90.0 | (50.8 | ) | ||||
Other operating activities, net | 13.5 | 32.9 | |||||
Net cash provided by (used in) operating activities | 90.8 | (56.6 | ) | ||||
Investing Activities | |||||||
Capital expenditures | (64.2 | ) | (73.4 | ) | |||
Acquisitions, net of cash acquired | (3.2 | ) | (71.3 | ) | |||
Proceeds (payments) from disposition of discontinued operations | 3.5 | (0.2 | ) | ||||
Proceeds from sale of assets | 63.7 | 0.8 | |||||
Other investing activities, net | (2.5 | ) | — | ||||
Net cash provided by (used in) investing activities | (2.7 | ) | (144.1 | ) | |||
Financing Activities | |||||||
Repayments of debt | (1,004.8 | ) | (1,029.4 | ) | |||
Proceeds from issuance of debt | 889.9 | 1,153.6 | |||||
Share repurchases | (80.9 | ) | (50.4 | ) | |||
Dividends paid | (22.7 | ) | (19.3 | ) | |||
Other financing activities, net | 1.2 | (1.3 | ) | ||||
Net cash provided by (used in) financing activities | (217.3 | ) | 53.2 | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 6.4 | (29.6 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (122.8 | ) | (177.1 | ) | |||
Cash and Cash Equivalents at Beginning of Period | 466.5 | 478.2 | |||||
Cash and Cash Equivalents at End of Period | $ | 343.7 | $ | 301.1 |
Nine Months Ended | |||
September 30, 2016 | |||
Balance at beginning of period | $ | 53.0 | |
Accruals for warranties issued during the period | 55.5 | ||
Changes in estimates | (3.8 | ) | |
Settlements during the period | (41.5 | ) | |
Foreign exchange effect/other | (1.0 | ) | |
Balance at end of period | $ | 62.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
Net Sales | ||||||||||||||
AWP | $ | 484.4 | $ | 580.9 | $ | 1,598.8 | $ | 1,786.7 | ||||||
Cranes | 282.8 | 379.3 | 947.5 | 1,160.3 | ||||||||||
MP | 228.2 | 238.7 | 708.2 | 698.6 | ||||||||||
Corporate and Other / Eliminations | 61.0 | 56.5 | 213.9 | 208.5 | ||||||||||
Total | $ | 1,056.4 | $ | 1,255.4 | $ | 3,468.4 | $ | 3,854.1 | ||||||
Income (loss) from Operations | ||||||||||||||
AWP | $ | 48.6 | $ | 78.9 | $ | 159.2 | $ | 228.6 | ||||||
Cranes | (12.1 | ) | 12.1 | (41.5 | ) | 35.8 | ||||||||
MP | 19.5 | 17.6 | 63.9 | 54.8 | ||||||||||
Corporate and Other / Eliminations | (16.4 | ) | (16.5 | ) | (57.3 | ) | (52.7 | ) | ||||||
Total | $ | 39.6 | $ | 92.1 | $ | 124.3 | $ | 266.5 |
September 30, 2016 | December 31, 2015 | ||||||
Identifiable Assets | |||||||
AWP | $ | 1,725.2 | $ | 1,701.2 | |||
Cranes | 1,889.5 | 1,822.3 | |||||
MP | 979.1 | 1,073.4 | |||||
Corporate and Other / Eliminations | (1,062.7 | ) | (891.0 | ) | |||
Assets held for sale | 2,038.2 | 1,910.1 | |||||
Total | $ | 5,569.3 | $ | 5,616.0 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 348.8 | $ | 385.9 | $ | 983.5 | $ | 1,111.3 | |||||||
Cost of sales | (261.2 | ) | (301.7 | ) | (774.1 | ) | (869.8 | ) | |||||||
Selling, general and administrative expenses | (63.7 | ) | (64.4 | ) | (222.2 | ) | (203.6 | ) | |||||||
Reversal of impairment of MHPS disposal group | 55.6 | — | — | — | |||||||||||
Net interest (expense) | (1.4 | ) | (0.2 | ) | (2.0 | ) | (1.1 | ) | |||||||
Other income (expense) | (2.3 | ) | 1.4 | (0.1 | ) | 0.5 | |||||||||
Income (loss) from discontinued operations before income taxes | 75.8 | 21.0 | (14.9 | ) | 37.3 | ||||||||||
(Provision for) benefit from income taxes | (11.7 | ) | (5.2 | ) | (18.5 | ) | (10.9 | ) | |||||||
Income (loss) from discontinued operations – net of tax | 64.1 | 15.8 | (33.4 | ) | 26.4 | ||||||||||
Net loss (income) attributable to noncontrolling interest | (0.6 | ) | (1.3 | ) | 0.1 | (3.1 | ) | ||||||||
Income (loss) from discontinued operations – net of tax attributable to Terex Corporation | $ | 63.5 | $ | 14.5 | $ | (33.3 | ) | $ | 23.3 | ||||||
September 30, 2016 | December 31, 2015 | ||||||||||||
MHPS | Construction | Total | MHPS | ||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 94.5 | $ | 0.4 | $ | 94.9 | $ | 95.3 | |||||
Trade receivables – net | 222.9 | 13.4 | 236.3 | 236.0 | |||||||||
Inventories | 403.7 | 37.5 | 441.2 | 382.1 | |||||||||
Prepaid and other current assets | 34.2 | 0.2 | 34.4 | 36.2 | |||||||||
Current assets held for sale | $ | 755.3 | $ | 51.5 | $ | 806.8 | $ | 749.6 | |||||
Property, plant and equipment – net | $ | 308.9 | $ | 15.7 | $ | 324.6 | $ | 303.9 | |||||
Goodwill | 606.9 | — | 606.9 | 564.1 | |||||||||
Intangible assets | 227.8 | — | 227.8 | 226.9 | |||||||||
Other assets | 70.4 | 1.7 | 72.1 | 65.6 | |||||||||
Non-current assets held for sale | $ | 1,214.0 | $ | 17.4 | $ | 1,231.4 | $ | 1,160.5 | |||||
Liabilities | |||||||||||||
Notes payable and current portion of long-term debt | $ | 21.9 | $ | — | $ | 21.9 | $ | 13.8 | |||||
Trade accounts payable | 145.0 | 7.1 | 152.1 | 177.0 | |||||||||
Accruals and other current liabilities | 315.8 | 7.2 | 323.0 | 255.2 | |||||||||
Current liabilities held for sale | $ | 482.7 | $ | 14.3 | $ | 497.0 | $ | 446.0 | |||||
Long-term debt, less current portion | $ | 2.6 | $ | — | $ | 2.6 | $ | 0.1 | |||||
Retirement plans and other non-current liabilities | 312.0 | 0.4 | 312.4 | 298.4 | |||||||||
Non-current liabilities held for sale | $ | 314.6 | $ | 0.4 | $ | 315.0 | $ | 298.5 | |||||
September 30, 2016 | December 31, 2015 | ||||||
Cash and cash equivalents: | |||||||
Cash and cash equivalents - continuing operations | $ | 248.8 | $ | 371.2 | |||
Cash and cash equivalents - held for sale | 94.9 | 95.3 | |||||
Total cash and cash equivalents: | $ | 343.7 | $ | 466.5 | |||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Non-cash operating items: | |||||||||||||||
Depreciation and amortization | $ | — | $ | 13.8 | $ | 22.4 | $ | 41.9 | |||||||
Impairment of MHPS disposal group | $ | (55.6 | ) | $ | — | $ | — | $ | — | ||||||
Deferred taxes | $ | 4.5 | $ | (0.5 | ) | $ | 8.8 | $ | (0.3 | ) | |||||
Investing activities: | |||||||||||||||
Capital expenditures | $ | 2.6 | $ | 3.3 | $ | 11.1 | $ | 13.9 | |||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Gain (loss) on disposition of discontinued operations | $ | — | $ | (1.3 | ) | $ | 4.6 | $ | 1.9 | ||||||
(Provision for) benefit from income taxes | — | 0.1 | (1.1 | ) | (0.4 | ) | |||||||||
Gain (loss) on disposition of discontinued operations – net of tax | $ | — | $ | (1.2 | ) | $ | 3.5 | $ | 1.5 | ||||||
(in millions, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
Income (loss) from continuing operations attributable to Terex Corporation Common Stockholders | $ | 33.3 | $ | 30.3 | $ | 120.9 | $ | 104.6 | ||||||
Income (loss) from discontinued operations–net of tax | 63.5 | 14.5 | (33.3 | ) | 23.3 | |||||||||
Gain (loss) on disposition of discontinued operations–net of tax | — | (1.2 | ) | 3.5 | 1.5 | |||||||||
Net income (loss) attributable to Terex Corporation | $ | 96.8 | $ | 43.6 | $ | 91.1 | $ | 129.4 | ||||||
Basic shares: | ||||||||||||||
Weighted average shares outstanding | 107.6 | 108.5 | 108.5 | 107.0 | ||||||||||
Earnings (loss) per share – basic: | ||||||||||||||
Income (loss) from continuing operations | $ | 0.31 | $ | 0.28 | $ | 1.12 | $ | 0.98 | ||||||
Income (loss) from discontinued operations–net of tax | 0.59 | 0.13 | (0.31 | ) | 0.22 | |||||||||
Gain (loss) on disposition of discontinued operations–net of tax | — | (0.01 | ) | 0.03 | 0.01 | |||||||||
Net income (loss) attributable to Terex Corporation | $ | 0.90 | $ | 0.40 | $ | 0.84 | $ | 1.21 | ||||||
Diluted shares: | ||||||||||||||
Weighted average shares outstanding - basic | 107.6 | 108.5 | 108.5 | 107.0 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options, restricted stock awards and convertible notes | 1.0 | 0.7 | 0.8 | 2.7 | ||||||||||
Diluted weighted average shares outstanding | 108.6 | 109.2 | 109.3 | 109.7 | ||||||||||
Earnings (loss) per share – diluted: | ||||||||||||||
Income (loss) from continuing operations | $ | 0.31 | $ | 0.28 | $ | 1.10 | $ | 0.95 | ||||||
Income (loss) from discontinued operations–net of tax | 0.58 | 0.13 | (0.30 | ) | 0.22 | |||||||||
Gain (loss) on disposition of discontinued operations–net of tax | — | (0.01 | ) | 0.03 | 0.01 | |||||||||
Net income (loss) attributable to Terex Corporation | $ | 0.89 | $ | 0.40 | $ | 0.83 | $ | 1.18 |
Reconciliation of Amounts Attributable to Common Stockholders | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Income (loss) from continuing operations | $ | 33.2 | $ | 30.3 | $ | 120.8 | $ | 104.5 | |||||||
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.1 | — | 0.1 | 0.1 | |||||||||||
Income (loss) from continuing operations attributable to Common Stockholders | $ | 33.3 | $ | 30.3 | $ | 120.9 | $ | 104.6 |
September 30, 2016 | December 31, 2015 | ||||||
Commercial loans | $ | 274.3 | $ | 331.4 | |||
Sales-type leases | 19.9 | 21.9 | |||||
Total finance receivables, gross | 294.2 | 353.3 | |||||
Allowance for credit losses | (7.5 | ) | (7.3 | ) | |||
Total finance receivables, net | $ | 286.7 | $ | 346.0 |
Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | |||||||||||||||||||||||
Commercial Loans | Sales-Type Leases | Total | Commercial Loans | Sales-Type Leases | Total | |||||||||||||||||||
Balance, beginning of period | $ | 6.9 | $ | 0.5 | $ | 7.4 | $ | 3.6 | $ | 1.3 | $ | 4.9 | ||||||||||||
Provision for credit losses | (0.5 | ) | 0.6 | 0.1 | 0.8 | (0.1 | ) | 0.7 | ||||||||||||||||
Charge offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | — | — | — | — | — | — | ||||||||||||||||||
Balance, end of period | $ | 6.4 | $ | 1.1 | $ | 7.5 | $ | 4.4 | $ | 1.2 | $ | 5.6 |
Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Commercial Loans | Sales-Type Leases | Total | Commercial Loans | Sales-Type Leases | Total | |||||||||||||||||||
Balance, beginning of period | $ | 6.5 | 0.8 | $ | 7.3 | $ | 1.9 | $ | 1.1 | $ | 3.0 | |||||||||||||
Provision for credit losses | (0.1 | ) | 0.3 | 0.2 | 2.5 | 0.1 | 2.6 | |||||||||||||||||
Charge offs | — | — | — | — | — | — | ||||||||||||||||||
Recoveries | — | — | — | — | — | — | ||||||||||||||||||
Balance, end of period | $ | 6.4 | $ | 1.1 | $ | 7.5 | $ | 4.4 | $ | 1.2 | $ | 5.6 |
September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
Commercial Loans | Sales-Type Leases | Total | Commercial Loans | Sales-Type Leases | Total | |||||||||||||||||||
Recorded investment | $ | 1.5 | $ | 0.6 | $ | 2.1 | $ | 1.9 | $ | 1.8 | $ | 3.7 | ||||||||||||
Related allowance | 1.5 | 0.6 | 2.1 | 1.9 | 0.5 | 2.4 | ||||||||||||||||||
Average recorded investment | 1.7 | 1.2 | 2.9 | 1.0 | 2.5 | 3.5 |
September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
Allowance for credit losses, ending balance: | Commercial Loans | Sales-Type Leases | Total | Commercial Loans | Sales-Type Leases | Total | ||||||||||||||||||
Individually evaluated for impairment | $ | 1.5 | $ | 0.6 | $ | 2.1 | $ | 1.9 | $ | 0.5 | $ | 2.4 | ||||||||||||
Collectively evaluated for impairment | 4.9 | 0.5 | 5.4 | 4.6 | 0.3 | 4.9 | ||||||||||||||||||
Total allowance for credit losses | $ | 6.4 | $ | 1.1 | $ | 7.5 | $ | 6.5 | $ | 0.8 | $ | 7.3 | ||||||||||||
Finance receivables, ending balance: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1.5 | $ | 0.6 | $ | 2.1 | $ | 1.9 | $ | 1.8 | $ | 3.7 | ||||||||||||
Collectively evaluated for impairment | 272.8 | 19.3 | 292.1 | 329.5 | 20.1 | 349.6 | ||||||||||||||||||
Total finance receivables | $ | 274.3 | $ | 19.9 | $ | 294.2 | $ | 331.4 | $ | 21.9 | $ | 353.3 |
September 30, 2016 | |||||||||||||||||||||||
Current | 31-60 days past due | 61-90 days past due | Greater than 90 days past due | Total past due | Total Finance Receivables | ||||||||||||||||||
Commercial loans | $ | 270.9 | $ | 3.1 | $ | 0.1 | $ | 0.2 | $ | 3.4 | $ | 274.3 | |||||||||||
Sales-type leases | 18.9 | 0.6 | — | 0.4 | 1.0 | 19.9 | |||||||||||||||||
Total finance receivables | $ | 289.8 | $ | 3.7 | $ | 0.1 | $ | 0.6 | $ | 4.4 | $ | 294.2 |
December 31, 2015 | |||||||||||||||||||||||
Current | 31-60 days past due | 61-90 days past due | Greater than 90 days past due | Total past due | Total Finance Receivables | ||||||||||||||||||
Commercial loans | $ | 329.6 | $ | 0.8 | $ | — | $ | 1.0 | $ | 1.8 | $ | 331.4 | |||||||||||
Sales-type leases | 20.2 | 0.5 | — | 1.2 | 1.7 | 21.9 | |||||||||||||||||
Total finance receivables | $ | 349.8 | $ | 1.3 | $ | — | $ | 2.2 | $ | 3.5 | $ | 353.3 |
Rating | September 30, 2016 | December 31, 2015 | ||||||
Superior | $ | 16.3 | $ | 21.5 | ||||
Above Average | 100.1 | 159.4 | ||||||
Average | 126.6 | 117.9 | ||||||
Below Average | 47.3 | 44.2 | ||||||
Sub Standard | 3.9 | 10.3 | ||||||
Total | $ | 294.2 | $ | 353.3 |
September 30, 2016 | December 31, 2015 | ||||||
Finished equipment | $ | 365.7 | $ | 429.1 | |||
Replacement parts | 158.5 | 168.3 | |||||
Work-in-process | 220.0 | 190.4 | |||||
Raw materials and supplies | 234.2 | 275.8 | |||||
Inventories | $ | 978.4 | $ | 1,063.6 |
September 30, 2016 | December 31, 2015 | ||||||
Property | $ | 34.1 | $ | 37.2 | |||
Plant | 155.0 | 161.9 | |||||
Equipment | 522.5 | 545.2 | |||||
Property, plant and equipment – gross | 711.6 | 744.3 | |||||
Less: Accumulated depreciation | (355.8 | ) | (372.4 | ) | |||
Property, plant and equipment – net | $ | 355.8 | $ | 371.9 |
AWP (1) | Cranes (1) | MP | Total | ||||||||||||
Balance at December 31, 2015, gross | $ | 137.7 | $ | 183.1 | $ | 204.3 | $ | 525.1 | |||||||
Accumulated impairment | (38.6 | ) | (4.2 | ) | (23.2 | ) | (66.0 | ) | |||||||
Balance at December 31, 2015, net | 99.1 | 178.9 | 181.1 | 459.1 | |||||||||||
Foreign exchange effect and other | (0.6 | ) | 4.6 | (14.4 | ) | (10.4 | ) | ||||||||
Balance at September 30, 2016, gross | 137.1 | 187.7 | 189.9 | 514.7 | |||||||||||
Accumulated impairment | (38.6 | ) | (4.2 | ) | (23.2 | ) | (66.0 | ) | |||||||
Balance at September 30, 2016, net (2) | $ | 98.5 | $ | 183.5 | $ | 166.7 | $ | 448.7 |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||||
Weighted Average Life (in years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||||||||||
Technology | 7 | $ | 18.1 | $ | (16.6 | ) | $ | 1.5 | $ | 17.3 | $ | (15.7 | ) | $ | 1.6 | ||||||||||
Customer Relationships | 21 | 34.2 | (25.3 | ) | 8.9 | 34.8 | (24.9 | ) | 9.9 | ||||||||||||||||
Land Use Rights | 68 | 8.2 | (0.9 | ) | 7.3 | 8.2 | (0.9 | ) | 7.3 | ||||||||||||||||
Other | 6 | 28.0 | (24.4 | ) | 3.6 | 28.0 | (24.2 | ) | 3.8 | ||||||||||||||||
Total definite-lived intangible assets | $ | 88.5 | $ | (67.2 | ) | $ | 21.3 | $ | 88.3 | $ | (65.7 | ) | $ | 22.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||
Aggregate Amortization Expense | $ | 0.7 | $ | 0.7 | $ | 2.1 | 2.2 |
2016 | $ | 2.9 | |
2017 | $ | 2.8 | |
2018 | $ | 2.3 | |
2019 | $ | 2.2 | |
2020 | $ | 2.2 |
Asset Derivatives | Balance Sheet Account | September 30, 2016 | December 31, 2015 | |||||
Foreign exchange contracts | Other current assets | $ | 3.3 | $ | 4.0 | |||
Interest rate swap | Other assets | — | 0.9 | |||||
Total asset derivatives | 3.3 | 4.9 | ||||||
Liability Derivatives | ||||||||
Foreign exchange contracts | Other current liabilities | (6.4 | ) | (0.8 | ) | |||
Interest rate swap | Other current liabilities | — | (0.7 | ) | ||||
Total liability derivatives | (6.4 | ) | (1.5 | ) | ||||
Total Derivatives | $ | (3.1 | ) | $ | 3.4 |
Asset Derivatives | Balance Sheet Account | September 30, 2016 | December 31, 2015 | |||||
Foreign exchange contracts | Other current assets | $ | 0.5 | $ | 0.5 | |||
Debt conversion feature | Other assets | 0.7 | 1.1 | |||||
Total asset derivatives | 1.2 | 1.6 | ||||||
Liability Derivatives | ||||||||
Foreign exchange contracts | Other current liabilities | (2.6 | ) | (0.2 | ) | |||
Total liability derivatives | (2.6 | ) | (0.2 | ) | ||||
Total Derivatives | $ | (1.4 | ) | $ | 1.4 |
Gain (Loss) Recognized in AOCI on Derivatives: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Cash Flow Derivatives | 2016 | 2015 | 2016 | 2015 | |||||||||||
Foreign exchange contracts | $ | (0.2 | ) | $ | 1.8 | $ | (4.8 | ) | $ | 3.0 | |||||
Interest rate swap | — | (0.3 | ) | (0.2 | ) | (0.4 | ) | ||||||||
Total | $ | (0.2 | ) | $ | 1.5 | $ | (5.0 | ) | $ | 2.6 | |||||
Gain (Loss) Reclassified from AOCI into Income (Effective): | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Account | 2016 | 2015 | 2016 | 2015 | |||||||||||
Cost of goods sold | $ | (1.3 | ) | $ | 0.5 | $ | — | $ | (0.4 | ) | |||||
Gain (Loss) Recognized in Income on Derivatives (Ineffective): | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Account | 2016 | 2015 | 2016 | 2015 | |||||||||||
Cost of goods sold | $ | 0.1 | $ | 0.8 | $ | 1.0 | $ | 2.7 | |||||||
Other income (expense) – net | (0.2 | ) | (0.5 | ) | (0.2 | ) | (0.2 | ) | |||||||
Total | $ | (0.1 | ) | $ | 0.3 | $ | 0.8 | $ | 2.5 |
Gain (Loss) Recognized in Income on Derivatives not designated as hedges: | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
Account | 2016 | 2015 | 2016 | 2015 | |||||||||||
Other income (expense) – net | $ | 7.0 | $ | (2.8 | ) | $ | (2.8 | ) | $ | (5.9 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
Balance at beginning of period | $ | (2.5 | ) | $ | 0.4 | $ | 2.3 | $ | (0.7 | ) | ||||
Additional gains (losses) – net | (1.0 | ) | 3.5 | (4.5 | ) | 6.5 | ||||||||
Amounts reclassified to earnings | 0.8 | (2.0 | ) | (0.5 | ) | (3.9 | ) | |||||||
Balance at end of period | $ | (2.7 | ) | $ | 1.9 | $ | (2.7 | ) | $ | 1.9 |
Amount incurred during the nine months ended September 30, 2016 | Cumulative amount incurred through September 30, 2016 | Total amount expected to be incurred | |||||||||
AWP | $ | 0.6 | $ | 0.6 | $ | 0.6 | |||||
Cranes | 17.4 | 18.2 | 27.5 | ||||||||
MP | 0.5 | 1.5 | 3.2 | ||||||||
Corp & Other | 7.4 | 7.4 | 7.4 | ||||||||
Total | $ | 25.9 | $ | 27.7 | $ | 38.7 |
Employee Termination Costs | Facility Exit Costs | Asset Disposal and Other Costs | Total | ||||||||||||
Amount incurred in the nine months ended September 30, 2016 | $ | 22.0 | $ | 1.3 | $ | 2.6 | $ | 25.9 | |||||||
Cumulative amount incurred through September 30, 2016 | $ | 23.2 | $ | 1.4 | $ | 3.1 | $ | 27.7 | |||||||
Total amount expected to be incurred | $ | 25.2 | $ | 2.4 | $ | 11.1 | $ | 38.7 |
Employee Termination Costs | Total | ||||||
Restructuring reserve at December 31, 2015 | $ | 0.9 | $ | 0.9 | |||
Restructuring charges | 21.8 | 21.8 | |||||
Cash expenditures | (2.9 | ) | (2.9 | ) | |||
Foreign exchange | 0.2 | 0.2 | |||||
Restructuring reserve at September 30, 2016 | $ | 20.0 | $ | 20.0 |
Book Value | Quote | FV | |||||||||
6% Notes | $ | 850.0 | $ | 1.02000 | $ | 867 | |||||
6-1/2% Notes | $ | 300.0 | $ | 1.02000 | $ | 306 | |||||
2014 Credit Agreement Term Loan (net of discount) – USD | $ | 224.0 | $ | 0.99625 | $ | 223 | |||||
2014 Credit Agreement Term Loan (net of discount) – EUR | $ | 219.7 | $ | 0.99750 | $ | 219 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension | Non-U.S. Pension | Other | U.S. Pension | Non-U.S. Pension | Other | U.S. Pension | Non-U.S. Pension | Other | U.S. Pension | Non-U.S. Pension | Other | ||||||||||||||||||||||||||||||||||||
Components of net periodic cost: | |||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 0.3 | $ | 0.7 | $ | — | $ | 0.3 | $ | 0.6 | $ | — | $ | 0.9 | $ | 2.1 | $ | — | $ | 0.9 | $ | 1.9 | $ | — | |||||||||||||||||||||||
Interest cost | 1.8 | 1.7 | 0.1 | 1.8 | 1.7 | 0.1 | 5.3 | 5.0 | 0.2 | 5.4 | 5.2 | 0.2 | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | (2.1 | ) | (1.5 | ) | — | (2.5 | ) | (1.7 | ) | — | (6.2 | ) | (4.7 | ) | — | (7.4 | ) | (5.2 | ) | — | |||||||||||||||||||||||||||
Amortization of actuarial loss | 1.0 | 0.6 | — | 1.0 | 0.8 | — | 3.1 | 1.9 | — | 2.9 | 2.4 | — | |||||||||||||||||||||||||||||||||||
Net periodic cost | $ | 1.0 | $ | 1.5 | $ | 0.1 | $ | 0.6 | $ | 1.4 | $ | 0.1 | $ | 3.1 | $ | 4.3 | $ | 0.2 | $ | 1.8 | $ | 4.3 | $ | 0.2 |
• | A consolidated class action complaint for violations of securities laws in the securities lawsuit was filed in the United States District Court, District of Connecticut on November 18, 2010 and is entitled Sheet Metal Workers Local 32 Pension Fund and Ironworkers St. Louis Council Pension Fund, individually and on behalf of all others similarly situated v. Terex Corporation, et al. |
• | A stockholder derivative complaint for violation of the Securities and Exchange Act of 1934, breach of fiduciary duty, waste of corporate assets and unjust enrichment was filed on April 12, 2010 in the United States District Court, District of Connecticut and is entitled Peter Derrer, derivatively on behalf of Terex Corporation v. Ronald M. DeFeo, Phillip C. Widman, Thomas J. Riordan, G. Chris Andersen, Donald P. Jacobs, David A. Sachs, William H. Fike, Donald DeFosset, Helge H. Wehmeier, Paula H.J. Cholmondeley, Oren G. Shaffer, Thomas J. Hansen, and David C. Wang, and Terex Corporation. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) | $ | 97.3 | $ | 44.9 | $ | 90.9 | $ | 132.4 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Cumulative translation adjustment (CTA), net of (provision for) benefit from taxes of $(4.2), $1.9, $(11.9) and $11.1, respectively | 2.2 | (73.9 | ) | (8.3 | ) | (200.1 | ) | ||||||||
Derivative hedging adjustment, net of (provision for) benefit from taxes of $(0.1), $0.0, $0.7 and $0.0, respectively | (0.2 | ) | 1.5 | (5.0 | ) | 2.6 | |||||||||
Debt and equity securities adjustment, net of (provision for) benefit from taxes of $0.0, $0.0, $0.0 and $0.1, respectively | (1.2 | ) | (2.6 | ) | 1.1 | (8.0 | ) | ||||||||
Pension liability adjustment: | |||||||||||||||
Amortization of actuarial (gain) loss, net of provision for (benefit from) taxes of $(0.8), $(0.4), $(2.4) and $(1.2), respectively | 1.7 | 2.4 | 5.0 | 7.3 | |||||||||||
Foreign exchange and other effects, net of (provision for) benefit from taxes of $0.1, $0.0, $0.3 and $(1.3), respectively | — | 1.1 | 3.0 | 7.8 | |||||||||||
Total pension liability adjustment | 1.7 | 3.5 | 8.0 | 15.1 | |||||||||||
Other comprehensive income (loss) | 2.5 | (71.5 | ) | (4.2 | ) | (190.4 | ) | ||||||||
Comprehensive income (loss) | 99.8 | (26.6 | ) | 86.7 | (58.0 | ) | |||||||||
Comprehensive loss (income) attributable to noncontrolling interest | (0.6 | ) | (1.2 | ) | 0.3 | (2.9 | ) | ||||||||
Comprehensive income (loss) attributable to Terex Corporation | $ | 99.2 | $ | (27.8 | ) | $ | 87.0 | $ | (60.9 | ) |
Three months ended September 30, 2016 | Three months ended September 30, 2015 | ||||||||||||||||||||||||||||||
CTA | Deriv. Hedging Adj. | Debt & Equity Securities Adj. | Pension Liability Adj. | Total | CTA | Deriv. Hedging Adj. | Debt & Equity Securities Adj. | Pension Liability Adj. | Total | ||||||||||||||||||||||
Beginning balance | $ | (503.2 | ) | $ | (2.5 | ) | $ | (4.0 | ) | $ | (146.6 | ) | $ | (656.3 | ) | $ | (371.7 | ) | $ | 0.4 | $ | (3.8 | ) | $ | (173.6 | ) | $ | (548.7 | ) | ||
Other comprehensive income before reclassifications | 2.1 | (1.0 | ) | (1.2 | ) | — | (0.1 | ) | (73.9 | ) | 3.5 | (2.6 | ) | 1.1 | (71.9 | ) | |||||||||||||||
Amounts reclassified from AOCI | 0.1 | 0.8 | — | 1.7 | 2.6 | — | (2.0 | ) | — | 2.4 | 0.4 | ||||||||||||||||||||
Net other comprehensive Income (Loss) | 2.2 | (0.2 | ) | (1.2 | ) | 1.7 | 2.5 | (73.9 | ) | 1.5 | (2.6 | ) | 3.5 | (71.5 | ) | ||||||||||||||||
Ending balance | $ | (501.0 | ) | $ | (2.7 | ) | $ | (5.2 | ) | $ | (144.9 | ) | $ | (653.8 | ) | $ | (445.6 | ) | $ | 1.9 | $ | (6.4 | ) | $ | (170.1 | ) | $ | (620.2 | ) |
Nine months ended September 30, 2016 | Nine months ended September 30, 2015 | ||||||||||||||||||||||||||||||
CTA | Deriv. Hedging Adj. | Debt & Equity Securities Adj. | Pension Liability Adj. | Total | CTA | Deriv. Hedging Adj. | Debt & Equity Securities Adj. | Pension Liability Adj. | Total | ||||||||||||||||||||||
Beginning balance | $ | (492.7 | ) | $ | 2.3 | $ | (6.3 | ) | $ | (152.9 | ) | $ | (649.6 | ) | $ | (245.5 | ) | $ | (0.7 | ) | $ | 1.6 | $ | (185.2 | ) | $ | (429.8 | ) | |||
Other comprehensive income before reclassifications | (8.4 | ) | (4.5 | ) | 1.1 | 3.0 | (8.8 | ) | (200.1 | ) | 6.5 | (8.0 | ) | 7.8 | (193.8 | ) | |||||||||||||||
Amounts reclassified from AOCI | 0.1 | (0.5 | ) | — | 5.0 | 4.6 | — | (3.9 | ) | — | 7.3 | 3.4 | |||||||||||||||||||
Net Other Comprehensive Income (Loss) | (8.3 | ) | (5.0 | ) | 1.1 | 8.0 | (4.2 | ) | (200.1 | ) | 2.6 | (8.0 | ) | 15.1 | (190.4 | ) | |||||||||||||||
Ending balance | $ | (501.0 | ) | $ | (2.7 | ) | $ | (5.2 | ) | $ | (144.9 | ) | $ | (653.8 | ) | $ | (445.6 | ) | $ | 1.9 | $ | (6.4 | ) | $ | (170.1 | ) | $ | (620.2 | ) |
Grant date | ||
March 3, 2016 | ||
Dividend yields | 1.22 | % |
Expected volatility | 45.59 | % |
Risk free interest rate | 0.97 | % |
Expected life (in years) | 3 |
Terex Corporation | Wholly-owned Guarantors | Non-guarantor Subsidiaries | Intercompany Eliminations | Consolidated | |||||||||||||||
Net sales | $ | 2.3 | $ | 539.3 | $ | 664.7 | $ | (149.9 | ) | $ | 1,056.4 | ||||||||
Cost of goods sold | (2.0 | ) | (466.7 | ) | (548.1 | ) | 144.3 | (872.5 | ) | ||||||||||
Gross profit | 0.3 | 72.6 | 116.6 | (5.6 | ) | 183.9 | |||||||||||||
Selling, general and administrative expenses | (9.4 | ) | (55.0 | ) | (85.5 | ) | 5.6 | (144.3 | ) | ||||||||||
Income (loss) from operations | (9.1 | ) | 17.6 | 31.1 | — | 39.6 | |||||||||||||
Interest income | 24.1 | 17.2 | 0.3 | (40.6 | ) | 1.0 | |||||||||||||
Interest expense | (37.6 | ) | (2.1 | ) | (26.3 | ) | 40.6 | (25.4 | ) | ||||||||||
Income (loss) from subsidiaries | 75.7 | 0.9 | 2.3 | (78.9 | ) | — | |||||||||||||
Other income (expense) – net | (8.9 | ) | 11.3 | (3.7 | ) | — | (1.3 | ) | |||||||||||
Income (loss) from continuing operations before income taxes | 44.2 | 44.9 | 3.7 | (78.9 | ) | 13.9 | |||||||||||||
(Provision for) benefit from income taxes | (11.0 | ) | 16.3 | 14.0 | — | 19.3 | |||||||||||||
Income (loss) from continuing operations | 33.2 | 61.2 | 17.7 | (78.9 | ) | 33.2 | |||||||||||||
Income (loss) from discontinued operations – net of tax | 64.1 | (3.7 | ) | 64.4 | (60.7 | ) | 64.1 | ||||||||||||
Net income (loss) | 97.3 | 57.5 | 82.1 | (139.6 | ) | 97.3 | |||||||||||||
Net loss (income) from continuing operations attributable to noncontrolling interest | — | — | 0.1 | — | 0.1 | ||||||||||||||
Net loss (income) from discontinued operations attributable to noncontrolling interest | — | — | (0.6 | ) | — | (0.6 | ) | ||||||||||||
Net income (loss) attributable to Terex Corporation | $ | 97.3 | $ | 57.5 | $ | 81.6 | $ | (139.6 | ) | $ | 96.8 | ||||||||
Comprehensive income (loss), net of tax | $ | 99.2 | $ | 57.8 | $ | 101.4 | $ | (158.6 | ) | $ | 99.8 | ||||||||
Comprehensive loss (income) attributable to noncontrolling interest | — | — | (0.6 | ) | — | (0.6 | ) | ||||||||||||
Comprehensive income (loss) attributable to Terex Corporation | $ | 99.2 | $ | 57.8 | $ | 100.8 | $ | (158.6 | ) | $ | 99.2 |
Terex Corporation | Wholly-owned Guarantors | Non-guarantor Subsidiaries | Intercompany Eliminations | Consolidated | |||||||||||||||
Net sales | $ | 4.5 | $ | 1,963.3 | $ | 2,121.3 | $ | (620.7 | ) | $ | 3,468.4 | ||||||||
Cost of goods sold | (3.9 | ) | (1,683.5 | ) | (1,781.1 | ) | 607.8 | (2,860.7 | ) | ||||||||||
Gross profit | 0.6 | 279.8 | 340.2 | (12.9 | ) | 607.7 | |||||||||||||
Selling, general and administrative expenses | (27.6 | ) | (189.2 | ) | (279.5 | ) | 12.9 | (483.4 | ) | ||||||||||
Income (loss) from operations | (27.0 | ) | 90.6 | 60.7 | — | 124.3 | |||||||||||||
Interest income | 73.4 | 51.5 | 1.6 | (123.2 | ) | 3.3 | |||||||||||||
Interest expense | (111.7 | ) | (6.5 | ) | (80.6 | ) | 123.2 | (75.6 | ) | ||||||||||
Loss on early extinguishment of debt | — | — | (0.4 | ) | — | (0.4 | ) | ||||||||||||
Income (loss) from subsidiaries | 228.5 | 11.2 | (3.1 | ) | (236.6 | ) | — | ||||||||||||
Other income (expense) – net | (42.7 | ) | 27.6 | 1.8 | — | (13.3 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 120.5 | 174.4 | (20.0 | ) | (236.6 | ) | 38.3 | ||||||||||||
(Provision for) benefit from income taxes | 0.3 | 3.4 | 78.8 | — | 82.5 | ||||||||||||||
Income (loss) from continuing operations | 120.8 | 177.8 | 58.8 | (236.6 | ) | 120.8 | |||||||||||||
Income (loss) from discontinued operations – net of tax | (33.4 | ) | (6.8 | ) | (33.7 | ) | 40.5 | (33.4 | ) | ||||||||||
Gain (loss) on disposition of discontinued operations – net of tax | 0.5 | — | 3.0 | — | 3.5 | ||||||||||||||
Net income (loss) | 87.9 | 171.0 | 28.1 | (196.1 | ) | 90.9 | |||||||||||||
Net loss (income) from continuing operations attributable to noncontrolling interest | — | — | 0.1 | — | 0.1 | ||||||||||||||
Net loss (income) from discontinued operations attributable to noncontrolling interest | — | — | 0.1 | — | 0.1 | ||||||||||||||
Net income (loss) attributable to Terex Corporation | $ | 87.9 | $ | 171.0 | $ | 28.3 | $ | (196.1 | ) | $ | 91.1 | ||||||||
Comprehensive income (loss), net of tax | $ | 87.0 | $ | 171.7 | $ | 114.2 | $ | (286.2 | ) | $ | 86.7 | ||||||||
Comprehensive loss (income) attributable to noncontrolling interest | — | — | 0.3 | — | 0.3 | ||||||||||||||
Comprehensive income (loss) attributable to Terex Corporation | $ | 87.0 | $ | 171.7 | $ | 114.5 | $ | (286.2 | ) | $ | 87.0 |
Terex Corporation | Wholly-owned Guarantors | Non-guarantor Subsidiaries | Intercompany Eliminations | Consolidated | |||||||||||||||
Net sales | $ | 2.8 | $ | 744.4 | $ | 738.8 | $ | (230.6 | ) | $ | 1,255.4 | ||||||||
Cost of goods sold | (2.3 | ) | (596.7 | ) | (634.6 | ) | 230.6 | (1,003.0 | ) | ||||||||||
Gross profit | 0.5 | 147.7 | 104.2 | — | 252.4 | ||||||||||||||
Selling, general and administrative expenses | (5.5 | ) | (64.6 | ) | (90.2 | ) | — | (160.3 | ) | ||||||||||
Income (loss) from operations | (5.0 | ) | 83.1 | 14.0 | — | 92.1 | |||||||||||||
Interest income | 25.5 | 17.3 | 0.5 | (42.3 | ) | 1.0 | |||||||||||||
Interest expense | (37.6 | ) | (1.8 | ) | (28.6 | ) | 42.3 | (25.7 | ) | ||||||||||
Income (loss) from subsidiaries | 59.4 | 2.6 | (0.3 | ) | (61.7 | ) | — | ||||||||||||
Other income (expense) – net | (22.0 | ) | 2.7 | 7.8 | — | (11.5 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes | 20.3 | 103.9 | (6.6 | ) | (61.7 | ) | 55.9 | ||||||||||||
(Provision for) benefit from income taxes | 10.0 | (31.8 | ) | (3.8 | ) | — | (25.6 | ) | |||||||||||
Income (loss) from continuing operations | 30.3 | 72.1 | (10.4 | ) | (61.7 | ) | 30.3 | ||||||||||||
Income (loss) from discontinued operations – net of tax | 15.8 | 1.2 | 15.5 | (16.7 | ) | 15.8 | |||||||||||||
Gain (loss) on disposition of discontinued operations – net of tax | (0.6 | ) | — | (0.6 | ) | — | (1.2 | ) | |||||||||||
Net income (loss) | 45.5 | 73.3 | 4.5 | (78.4 | ) | 44.9 | |||||||||||||
Net loss (income) from continuing operations attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||
Net loss (income) from discontinued operations attributable to noncontrolling interest | — | — | (1.3 | ) | — | (1.3 | ) | ||||||||||||
Net income (loss) attributable to Terex Corporation | $ | 45.5 | $ | 73.3 | $ | 3.2 | $ | (78.4 | ) | $ | 43.6 | ||||||||
Comprehensive income (loss), net of tax | $ | (27.8 | ) | $ | 73.0 | $ | (35.4 | ) | $ | (36.4 | ) | $ | (26.6 | ) | |||||
Comprehensive loss (income) attributable to noncontrolling interest | — | — | (1.2 | ) | — | (1.2 | ) | ||||||||||||
Comprehensive income (loss) attributable to Terex Corporation | $ | (27.8 | ) | $ | 73.0 | $ | (36.6 | ) | $ | (36.4 | ) | $ | (27.8 | ) |
Terex Corporation | Wholly-owned Guarantors | Non-guarantor Subsidiaries | Intercompany Eliminations | Consolidated | |||||||||||||||
Net sales | $ | 8.3 | $ | 2,343.3 | $ | 2,207.2 | $ | (704.7 | ) | $ | 3,854.1 | ||||||||
Cost of goods sold | (6.5 | ) | (1,913.9 | ) | (1,882.5 | ) | 704.7 | (3,098.2 | ) | ||||||||||
Gross profit | 1.8 | 429.4 | 324.7 | — | 755.9 | ||||||||||||||
Selling, general and administrative expenses | (12.0 | ) | (199.4 | ) | (278.0 | ) | — | (489.4 | ) | ||||||||||
Income (loss) from operations | (10.2 | ) | 230.0 | 46.7 | — | 266.5 | |||||||||||||
Interest income | 78.2 | 51.5 | 1.4 | (128.3 | ) | 2.8 | |||||||||||||
Interest expense | (118.0 | ) | (4.5 | ) | (88.3 | ) | 128.3 | (82.5 | ) | ||||||||||
Income (loss) from subsidiaries | 173.7 | 0.2 | 0.2 | (174.1 | ) | — | |||||||||||||
Other income (expense) – net | (47.9 | ) | (1.2 | ) | 31.3 | — | (17.8 | ) | |||||||||||
Income (loss) from continuing operations before income taxes | 75.8 | 276.0 | (8.7 | ) | (174.1 | ) | 169.0 | ||||||||||||
(Provision for) benefit from income taxes | 28.7 | (78.0 | ) | (15.2 | ) | — | (64.5 | ) | |||||||||||
Income (loss) from continuing operations | 104.5 | 198.0 | (23.9 | ) | (174.1 | ) | 104.5 | ||||||||||||
Income (loss) from discontinued operations – net of tax | 26.4 | 2.5 | 25.9 | (28.4 | ) | 26.4 | |||||||||||||
Gain (loss) on disposition of discontinued operations – net of tax | (0.6 | ) | — | 2.1 | — | 1.5 | |||||||||||||
Net income (loss) | 130.3 | 200.5 | 4.1 | (202.5 | ) | 132.4 | |||||||||||||
Net loss (income) from continuing operations attributable to noncontrolling interest | — | — | 0.1 | — | 0.1 | ||||||||||||||
Net loss (income) from discontinued operations attributable to noncontrolling interest | — | — | (3.1 | ) | — | (3.1 | ) | ||||||||||||
Net income (loss) attributable to Terex Corporation | $ | 130.3 | $ | 200.5 | $ | 1.1 | $ | (202.5 | ) | $ | 129.4 | ||||||||
Comprehensive income (loss), net of tax | $ | (60.9 | ) | $ | 200.3 | $ | (159.0 | ) | $ | (38.4 | ) | $ | (58.0 | ) | |||||
Comprehensive loss (income) attributable to noncontrolling interest | — | — | (2.9 | ) | — | (2.9 | ) | ||||||||||||
Comprehensive income (loss) attributable to Terex Corporation | $ | (60.9 | ) | $ | 200.3 | $ | (161.9 | ) | $ | (38.4 | ) | $ | (60.9 | ) |
Terex Corporation | Wholly-owned Guarantors | Non-guarantor Subsidiaries | Intercompany Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 4.2 | $ | 0.5 | $ | 244.1 | $ | — | $ | 248.8 | |||||||||
Trade receivables – net | 7.4 | 186.9 | 462.5 | — | 656.8 | ||||||||||||||
Intercompany receivables | 46.7 | 54.2 | 69.2 | (170.1 | ) | — | |||||||||||||
Inventories | 0.4 | 368.4 | 609.6 | — | 978.4 | ||||||||||||||
Prepaid and other current assets | 65.5 | 93.3 | 70.8 | — | 229.6 | ||||||||||||||
Current assets held for sale | — | 21.6 | 785.2 | — | 806.8 | ||||||||||||||
Total current assets | 124.2 | 724.9 | 2,241.4 | (170.1 | ) | 2,920.4 | |||||||||||||
Property, plant and equipment – net | 53.2 | 152.1 | 150.5 | — | 355.8 | ||||||||||||||
Goodwill | — | 164.1 | 284.6 | — | 448.7 | ||||||||||||||
Non-current intercompany receivables | 1,341.6 | 2,888.3 | 88.9 | (4,318.8 | ) | — | |||||||||||||
Investment in and advances to (from) subsidiaries | 4,393.5 | 97.6 | 110.1 | (4,552.9 | ) | 48.3 | |||||||||||||
Other assets | 47.9 | 231.3 | 285.5 | — | 564.7 | ||||||||||||||
Non-current assets held for sale | — | 120.3 | 1,111.1 | — | 1,231.4 | ||||||||||||||
Total assets | $ | 5,960.4 | $ | 4,378.6 | $ | 4,272.1 | $ | (9,041.8 | ) | $ | 5,569.3 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Notes payable and current portion of long-term debt | $ | — | $ | 0.7 | $ | 9.8 | $ | — | $ | 10.5 | |||||||||
Trade accounts payable | 22.4 | 176.6 | 275.5 | — | 474.5 | ||||||||||||||
Intercompany payables | 4.8 | 49.1 | 116.2 | (170.1 | ) | — | |||||||||||||
Accruals and other current liabilities | 71.2 | 128.9 | 293.3 | — | 493.4 | ||||||||||||||
Current liabilities held for sale | — | 16.5 | 480.5 | — | 497.0 | ||||||||||||||
Total current liabilities | 98.4 | 371.8 | 1,175.3 | (170.1 | ) | 1,475.4 | |||||||||||||
Long-term debt, less current portion | 1,209.9 | 0.7 | 442.4 | — | 1,653.0 | ||||||||||||||
Non-current intercompany payables | 2,719.5 | — | 1,599.3 | (4,318.8 | ) | — | |||||||||||||
Retirement plans and other non-current liabilities | 54.9 | 33.5 | 123.9 | — | 212.3 | ||||||||||||||
Non-current liabilities held for sale | — | — | 315.0 | — | 315.0 | ||||||||||||||
Total stockholders’ equity | 1,877.7 | 3,972.6 | 616.2 | (4,552.9 | ) | 1,913.6 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 5,960.4 | $ | 4,378.6 | $ | 4,272.1 | $ | (9,041.8 | ) | $ | 5,569.3 |
Terex Corporation | Wholly-owned Guarantors | Non-guarantor Subsidiaries | Intercompany Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 91.7 | $ | 0.2 | $ | 279.3 | $ | — | $ | 371.2 | |||||||||
Trade receivables – net | 5.2 | 241.7 | 456.4 | — | 703.3 | ||||||||||||||
Intercompany receivables | 57.5 | 55.3 | 64.7 | (177.5 | ) | — | |||||||||||||
Inventories | — | 424.2 | 639.4 | — | 1,063.6 | ||||||||||||||
Prepaid and other current assets | 108.6 | 33.9 | 110.0 | — | 252.5 | ||||||||||||||
Current assets held for sale | — | 17.1 | 732.5 | — | 749.6 | ||||||||||||||
Total current assets | 263.0 | 772.4 | 2,282.3 | (177.5 | ) | 3,140.2 | |||||||||||||
Property, plant and equipment – net | 57.9 | 145.9 | 168.1 | — | 371.9 | ||||||||||||||
Goodwill | — | 162.2 | 296.9 | — | 459.1 | ||||||||||||||
Non-current intercompany receivables | 1,353.8 | 2,786.4 | 72.9 | (4,213.1 | ) | — | |||||||||||||
Investment in and advances to (from) subsidiaries | 4,010.2 | 94.4 | 95.2 | (4,154.5 | ) | 45.3 | |||||||||||||
Other assets | 29.2 | 104.3 | 305.5 | — | 439.0 | ||||||||||||||
Non-current assets held for sale | — | 29.5 | 1,131.0 | — | 1,160.5 | ||||||||||||||
Total assets | $ | 5,714.1 | $ | 4,095.1 | $ | 4,351.9 | $ | (8,545.1 | ) | $ | 5,616.0 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Notes payable and current portion of long-term debt | $ | — | $ | 0.7 | $ | 65.7 | $ | — | $ | 66.4 | |||||||||
Trade accounts payable | 21.4 | 222.8 | 316.5 | — | 560.7 | ||||||||||||||
Intercompany payables | 3.1 | 56.6 | 117.8 | (177.5 | ) | — | |||||||||||||
Accruals and other current liabilities | 59.8 | 113.5 | 212.2 | — | 385.5 | ||||||||||||||
Current liabilities held for sale | — | 17.6 | 428.4 | — | 446.0 | ||||||||||||||
Total current liabilities | 84.3 | 411.2 | 1,140.6 | (177.5 | ) | 1,458.6 | |||||||||||||
Long-term debt, less current portion | 1,138.1 | 1.2 | 590.5 | — | 1,729.8 | ||||||||||||||
Non-current intercompany payables | 2,562.3 | — | 1,650.8 | (4,213.1 | ) | — | |||||||||||||
Retirement plans and other non-current liabilities | 52.0 | 35.3 | 129.8 | — | 217.1 | ||||||||||||||
Non-current liabilities held for sale | — | — | 298.5 | — | 298.5 | ||||||||||||||
Total stockholders’ equity | 1,877.4 | 3,647.4 | 541.7 | (4,154.5 | ) | 1,912.0 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 5,714.1 | $ | 4,095.1 | $ | 4,351.9 | $ | (8,545.1 | ) | $ | 5,616.0 |
Terex Corporation | Wholly-owned Guarantors | Non-guarantor Subsidiaries | Intercompany Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (188.5 | ) | $ | 262.9 | $ | 10.7 | $ | 5.7 | $ | 90.8 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | (2.0 | ) | (30.9 | ) | (31.3 | ) | — | (64.2 | ) | ||||||||||
Proceeds from disposition of discontinued operations | — | — | 3.5 | — | 3.5 | ||||||||||||||
Acquisitions, net of cash acquired | — | — | (3.2 | ) | — | (3.2 | ) | ||||||||||||
Proceeds from sale of assets | 0.1 | 5.9 | 57.7 | — | 63.7 | ||||||||||||||
Intercompany investing activities (1) | 136.6 | (97.5 | ) | (23.4 | ) | (15.7 | ) | — | |||||||||||
Other investing activities, net | — | — | 26.6 | (29.1 | ) | (2.5 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 134.7 | (122.5 | ) | 29.9 | (44.8 | ) | (2.7 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Repayments of debt | (742.8 | ) | (0.6 | ) | (261.4 | ) | — | (1,004.8 | ) | ||||||||||
Proceeds from issuance of debt | 812.8 | — | 77.1 | — | 889.9 | ||||||||||||||
Share repurchases | (80.9 | ) | — | — | — | (80.9 | ) | ||||||||||||
Dividends paid | (22.7 | ) | — | — | — | (22.7 | ) | ||||||||||||
Intercompany financing activities (1) | — | (138.6 | ) | 99.5 | 39.1 | — | |||||||||||||
Other financing activities, net | — | — | 1.2 | — | 1.2 | ||||||||||||||
Net cash provided by (used in) financing activities | (33.6 | ) | (139.2 | ) | (83.6 | ) | 39.1 | (217.3 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 6.4 | — | 6.4 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (87.4 | ) | 1.2 | (36.6 | ) | — | (122.8 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 91.6 | 3.1 | 371.8 | — | 466.5 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 4.2 | $ | 4.3 | $ | 335.2 | $ | — | $ | 343.7 |
(1) | Intercompany investing and financing activities include cash pooling activity between Terex Corporation and Wholly-Owned Guarantors. |
Terex Corporation | Wholly-owned Guarantors | Non-guarantor Subsidiaries | Intercompany Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (413.2 | ) | $ | 423.9 | $ | 109.3 | $ | (176.6 | ) | $ | (56.6 | ) | ||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | (1.6 | ) | (31.1 | ) | (40.7 | ) | — | (73.4 | ) | ||||||||||
Acquisitions, net of cash acquired | — | (52.1 | ) | (19.2 | ) | — | (71.3 | ) | |||||||||||
Proceeds from disposition of discontinued operations | (3.4 | ) | — | 3.2 | — | (0.2 | ) | ||||||||||||
Proceeds from sale of assets | (1.0 | ) | 0.1 | 1.7 | — | 0.8 | |||||||||||||
Intercompany investing activities (1) | 454.5 | — | (188.9 | ) | (265.6 | ) | — | ||||||||||||
Other investing activities, net | — | — | 17.3 | (17.3 | ) | — | |||||||||||||
Net cash provided by (used in) investing activities | 448.5 | (83.1 | ) | (226.6 | ) | (282.9 | ) | (144.1 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||||
Repayments of debt | (983.6 | ) | (6.2 | ) | (39.6 | ) | — | (1,029.4 | ) | ||||||||||
Proceeds from issuance of debt | 927.0 | — | 226.6 | — | 1,153.6 | ||||||||||||||
Share repurchases | (50.4 | ) | — | — | — | (50.4 | ) | ||||||||||||
Dividends paid | (19.3 | ) | — | — | — | (19.3 | ) | ||||||||||||
Intercompany financing activities (1) | — | (332.3 | ) | (127.2 | ) | 459.5 | — | ||||||||||||
Other financing activities, net | 0.6 | — | (1.9 | ) | — | (1.3 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (125.7 | ) | (338.5 | ) | 57.9 | 459.5 | 53.2 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (29.6 | ) | — | (29.6 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (90.4 | ) | 2.3 | (89.0 | ) | — | (177.1 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 99.0 | 1.9 | 377.3 | — | 478.2 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 8.6 | $ | 4.2 | $ | 288.3 | $ | — | $ | 301.1 |
(1) | Intercompany investing and financing activities include cash pooling activity between Terex Corporation and Wholly-Owned Guarantors. |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Sep '16 | Jun '16 | Mar '16 | Dec '15 | Jun '15 | |||||||||||
Provision for (benefit from) income taxes as adjusted | $ | (7.6 | ) | $ | (61.4 | ) | $ | 5.0 | $ | 5.6 | |||||
Divided by: Income (loss) before income taxes as adjusted | 89.7 | 3.1 | (69.4 | ) | 20.3 | ||||||||||
Effective tax rate | (8.5 | )% | (1,980.6 | )% | (7.2 | )% | 27.6 | % | |||||||
Income (loss) from operations as adjusted | $ | 118.9 | $ | 30.8 | $ | (43.4 | ) | $ | 53.1 | ||||||
Multiplied by: 1 minus Effective tax rate | 108.5 | % | 2,080.6 | % | 107.2 | % | 72.4 | % | |||||||
Adjusted net operating income (loss) after tax | $ | 129.0 | $ | 640.8 | $ | (46.5 | ) | $ | 38.4 | ||||||
Debt (as defined above) as adjusted | $ | 1,688.0 | $ | 1,709.0 | $ | 1,830.9 | $ | 1,810.1 | $ | 1,875.5 | |||||
Less: Cash and cash equivalents as adjusted | (343.7 | ) | (298.1 | ) | (323.6 | ) | (466.5 | ) | (301.1 | ) | |||||
Debt less Cash and cash equivalents as adjusted | 1,344.3 | 1,410.9 | 1,507.3 | 1,343.6 | 1,574.4 | ||||||||||
Total Terex Corporation stockholders’ equity as adjusted | 1,588.1 | 1,527.2 | 1,501.0 | 1,528.0 | 1,549.7 | ||||||||||
Debt less Cash and cash equivalents plus Total Terex Corporation stockholders’ equity as adjusted | $ | 2,932.4 | $ | 2,938.1 | $ | 3,008.3 | $ | 2,871.6 | $ | 3,124.1 |
September 30, 2016 ROIC | 25.6 | % | |
NOPAT as adjusted (last 4 quarters) | $ | 761.7 | |
Average Debt less Cash and cash equivalents plus Total Terex Corporation stockholders’ equity as adjusted (5 quarters) | $ | 2,974.9 |
Three months ended 9/30/16 | Three months ended 6/30/16 | Three months ended 3/31/16 | Three months ended 12/31/15 | ||||||||||||
Reconciliation of Provision for (benefit from) income taxes: | |||||||||||||||
Provision for (benefit from) income taxes from continuing operations | (19.3 | ) | (67.1 | ) | 3.9 | 3.0 | |||||||||
Provision for (benefit from) income taxes from discontinued operations | 11.7 | 5.7 | 1.1 | 2.6 | |||||||||||
Provision for (benefit from) income taxes as adjusted | $ | (7.6 | ) | $ | (61.4 | ) | $ | 5.0 | $ | 5.6 | |||||
Reconciliation of income (loss) before income taxes: | |||||||||||||||
Income (loss) before income taxes from continuing operations | 13.9 | 42.5 | (18.1 | ) | 26.7 | ||||||||||
Income (loss) before income taxes from discontinued operations | 75.8 | (39.4 | ) | (51.3 | ) | (6.4 | ) | ||||||||
Income (loss) before income taxes from operations as adjusted | $ | 89.7 | $ | 3.1 | $ | (69.4 | ) | $ | 20.3 | ||||||
Reconciliation of income (loss) from operations: | |||||||||||||||
Income (loss) from operations | $ | 39.6 | $ | 73.4 | $ | 11.3 | $ | 57.3 | |||||||
Income (loss) from discontinued operations | 79.5 | (39.3 | ) | (53.0 | ) | (6.5 | ) | ||||||||
(Income) loss from operations for TFS | (0.2 | ) | (3.3 | ) | (1.7 | ) | 2.3 | ||||||||
Income (loss) from operations as adjusted | $ | 118.9 | $ | 30.8 | $ | (43.4 | ) | $ | 53.1 | ||||||
As of 9/30/16 | As of 6/30/16 | As of 3/31/16 | As of 12/31/15 | As of 9/30/15 | |||||||||||
Reconciliation of Cash and cash equivalents: | |||||||||||||||
Cash and cash equivalents from continuing operations | $ | 248.8 | $ | 200.8 | $ | 216.2 | $ | 371.2 | $ | 213.3 | |||||
Cash and cash equivalents in assets held for sale | 94.9 | 97.3 | 107.4 | 95.3 | 87.8 | ||||||||||
Cash and cash equivalents as adjusted | $ | 343.7 | $ | 298.1 | $ | 323.6 | $ | 466.5 | $ | 301.1 | |||||
Reconciliation of Debt: | |||||||||||||||
Debt from continuing operations | $ | 1,663.5 | $ | 1,686.3 | $ | 1,809.1 | $ | 1,796.2 | $ | 1,855.8 | |||||
Debt included in liabilities held for sale | 24.5 | 22.7 | 21.8 | 13.9 | 19.7 | ||||||||||
Debt as adjusted | $ | 1,688.0 | $ | 1,709.0 | $ | 1,830.9 | $ | 1,810.1 | $ | 1,875.5 | |||||
Reconciliation of Terex Corporation stockholders’ equity: | |||||||||||||||
Terex Corporation stockholders’ equity as reported | $ | 1,877.7 | $ | 1,856.1 | $ | 1,855.1 | $ | 1,877.4 | $ | 1,889.9 | |||||
TFS Assets | (289.6 | ) | (328.9 | ) | (354.1 | ) | (349.4 | ) | (340.2 | ) | |||||
Terex Corporation stockholders’ equity as adjusted | $ | 1,588.1 | $ | 1,527.2 | $ | 1,501.0 | $ | 1,528.0 | $ | 1,549.7 |
Three Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 1,056.4 | — | $ | 1,255.4 | — | (15.9 | )% | ||||||||
Gross profit | $ | 183.9 | 17.4 | % | $ | 252.4 | 20.1 | % | (27.1 | )% | ||||||
SG&A | $ | 144.3 | 13.7 | % | $ | 160.3 | 12.8 | % | (10.0 | )% | ||||||
Income (loss) from operations | $ | 39.6 | 3.7 | % | $ | 92.1 | 7.3 | % | (57.0 | )% |
Three Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 484.4 | — | $ | 580.9 | — | (16.6 | )% | ||||||||
Income from operations | $ | 48.6 | 10.0 | % | $ | 78.9 | 13.6 | % | (38.4 | )% |
Three Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 282.8 | — | $ | 379.3 | — | (25.4 | )% | ||||||||
Income (loss) from operations | $ | (12.1 | ) | (4.3 | )% | $ | 12.1 | 3.2 | % | (200.0 | )% |
Three Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 228.2 | — | $ | 238.7 | — | (4.4 | )% | ||||||||
Income from operations | $ | 19.5 | 8.5 | % | $ | 17.6 | 7.4 | % | 10.8 | % |
Three Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 61.0 | — | $ | 56.5 | — | 8.0 | % | ||||||||
Loss from operations | $ | (16.4 | ) | (26.9 | )% | $ | (16.5 | ) | (29.2 | )% | 0.6 | % |
Nine Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 3,468.4 | — | $ | 3,854.1 | — | (10.0 | )% | ||||||||
Gross profit | $ | 607.7 | 17.5 | % | $ | 755.9 | 19.6 | % | (19.6 | )% | ||||||
SG&A | $ | 483.4 | 13.9 | % | $ | 489.4 | 12.7 | % | (1.2 | )% | ||||||
Income (loss) from operations | $ | 124.3 | 3.6 | % | $ | 266.5 | 6.9 | % | (53.4 | )% |
Nine Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 1,598.8 | — | $ | 1,786.7 | — | (10.5 | )% | ||||||||
Income from operations | $ | 159.2 | 10.0 | % | $ | 228.6 | 12.8 | % | (30.4 | )% |
Nine Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 947.5 | — | $ | 1,160.3 | — | (18.3 | )% | ||||||||
Income (loss) from operations | $ | (41.5 | ) | (4.4 | )% | $ | 35.8 | 3.1 | % | (215.9 | )% |
Nine Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 708.2 | — | $ | 698.6 | — | 1.4 | % | ||||||||
Income from operations | $ | 63.9 | 9.0 | % | $ | 54.8 | 7.8 | % | 16.6 | % |
Nine Months Ended September 30, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | ||||||||||||||
($ amounts in millions) | ||||||||||||||||
Net sales | $ | 213.9 | — | $ | 208.5 | — | 2.6 | % | ||||||||
Loss from operations | $ | (57.3 | ) | (26.8 | )% | $ | (52.7 | ) | (25.3 | )% | (8.7 | )% |
• | Many of our customers fund their purchases through third-party finance companies that extend credit based on the credit-worthiness of the customers and expected residual value of our equipment. Changes either in the customers’ credit profile or used equipment values may affect the ability of customers to purchase equipment. There can be no assurance third-party finance companies will continue to extend credit to our customers as they have in the past. |
• | As our sales change, the amount of working capital needed to support our business may change. |
• | Our suppliers extend payment terms to us primarily based on our overall credit rating. Declines in our credit rating may influence suppliers’ willingness to extend terms and in turn increase cash requirements of our business. |
• | Sales of our products are subject to general economic conditions, weather, competition, translation effect of foreign currency exchange rate changes, and other factors that in many cases are outside our direct control. For example, during periods of economic uncertainty, our customers have delayed purchasing decisions, which reduces cash generated from operations. |
Three Months Ended 9/30/2016 | |||
Net Sales | $ | 1,056.4 | |
x | 4 | ||
Trailing Three Month Annualized Net Sales | $ | 4,225.6 |
As of 9/30/16 | |||
Inventories | $ | 978.4 | |
Trade Receivables | 656.8 | ||
Trade Accounts Payable | (474.5 | ) | |
Customer Advances | (42.1 | ) | |
Total Working Capital | $ | 1,118.6 |
Three Months Ended 9/30/2016 | Nine Months Ended 9/30/2016 | |||||||
Net cash provided by (used in) operating activities | $ | 106.4 | $ | 90.8 | ||||
Increase (Decrease) in TFS assets | (39.3 | ) | (59.8 | ) | ||||
(Increase) Decrease in cash for securitization settlement | — | 6.2 | ||||||
Capital expenditures | (20.1 | ) | (64.2 | ) | ||||
Free cash flow | $ | 47.0 | $ | (27.0 | ) |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
(a) | Evaluation of Disclosure Controls and Procedures |
(b) | Changes in Internal Control Over Financial Reporting |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(a) | Not applicable |
(b) | Not applicable |
(c) | The following table provides information about our purchases during the quarter ended September 30, 2016 of our common stock that is registered by us pursuant to the Exchange Act. |
Issuer Purchases of Equity Securities | ||||||||
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (in thousands) (1) | ||||
July 1, 2016 - July 31, 2016 | 712,135 | $20.50 | 712,135 | $135,402 | ||||
August 1, 2016 - August 31, 2016 | 2,173,169 | $24.13 | 2,173,169 | $82,969 | ||||
September 1, 2016 - September 30, 2016 | 526,579 (2) | $24.49 | 512,579 | $70,402 | ||||
Total | 3,411,883 | $23.43 | 3,397,883 | $70,402 |
(1) | In February 2015, our Board of Directors authorized and the Company publicly announced the repurchase of up to $200 million of the Company’s outstanding common shares. |
(2) | Amount includes shares of common stock purchased to satisfy requirements under the Company’s deferred compensation obligations to employees. |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Date: | November 1, 2016 | /s/ Kevin P. Bradley |
Kevin P. Bradley | ||
Senior Vice President and | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Date: | November 1, 2016 | /s/ Mark I. Clair |
Mark I. Clair | ||
Vice President, Controller and | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) |
2.1 | Stock and Asset Purchase Agreement between Terex Corporation and Konecranes Plc (incorporated by reference to Exhibit 2.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated May 16, 2016 and filed with the Commission on May 19, 2016). |
2.2 | Amendment No. 1 to the Stock and Asset Purchase Agreement between Terex Corporation and Konecranes Plc (incorporated by reference to Exhibit 2.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated June 21, 2016 and filed with the Commission on June 24, 2016). |
3.1 | Restated Certificate of Incorporation of Terex Corporation (incorporated by reference to Exhibit 3.1 of the Form S-1 Registration Statement of Terex Corporation, Registration No. 33-52297). |
3.2 | Certificate of Elimination with respect to the Series B Preferred Stock (incorporated by reference to Exhibit 4.3 of the Form 10-K for the year ended December 31, 1998 of Terex Corporation, Commission File No. 1-10702). |
3.3 | Certificate of Amendment to Certificate of Incorporation of Terex Corporation dated September 5, 1998 (incorporated by reference to Exhibit 3.3 of the Form 10-K for the year ended December 31, 1998 of Terex Corporation, Commission File No. 1-10702). |
3.4 | Certificate of Amendment of the Certificate of Incorporation of Terex Corporation dated July 17, 2007 (incorporated by reference to Exhibit 3.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated July 17, 2007 and filed with the Commission on July 17, 2007). |
3.5 | Amended and Restated Bylaws of Terex Corporation (incorporated by reference to Exhibit 3.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 15, 2015 and filed with the Commission on October 19, 2015). |
4.1 | Indenture, dated July 20, 2007, between Terex Corporation and HSBC Bank USA, National Association, as Trustee, relating to senior debt securities (incorporated by reference to Exhibit 4.1 of the Form S-3 Registration Statement of Terex Corporation, Registration No. 333-144796). |
4.2 | Indenture, dated July 20, 2007, between Terex Corporation and HSBC Bank USA, National Association, as Trustee, relating to subordinated debt securities (incorporated by reference to Exhibit 4.2 of the Form S-3 Registration Statement of Terex Corporation, Registration No. 333-144796). |
4.3 | Third Supplemental Indenture, dated as of March 27, 2012, to Senior Debt Indenture dated as of July 20, 2007, with HSBC Bank USA, National Association as Trustee relating to the 6.50% Senior Notes due 2020 (incorporated by reference to Exhibit 4.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated March 27, 2012 and filed with the Commission on March 30, 2012). |
4.4 | Fourth Supplemental Indenture, dated as of November 26, 2012, to the Senior Debt Indenture dated as of July 20, 2007, with HSBC Bank USA, National Association as Trustee relating to 6% Senior Notes due 2021 (incorporated by reference to Exhibit 4.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated November 26, 2012 and filed with the Commission on November 30, 2012). |
4.5 | Supplemental Indenture to the Third Supplemental Indenture dated as of March 27, 2012 to Senior Debt Indenture dated as of July 20, 2007, with HSBC Bank USA, National Association as Trustee relating to the 6.50% Senior Notes due 2020 (incorporated by reference to Exhibit 4.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated September 8, 2015 and filed with the Commission on September 14, 2015). |
4.6 | Supplemental Indenture to the Fourth Supplemental Indenture, dated as of November 26, 2012, to the Senior Debt Indenture dated as of July 20, 2007, with HSBC Bank USA, National Association as Trustee relating to 6% Senior Notes due 2021 (incorporated by reference to Exhibit 4.2 of the Form 8-K Current Report, Commission File No. 1-10702, dated September 8, 2015 and filed with the Commission on September 14, 2015). |
4.7 | Waiver Agreement, dated September 30, 2016, to Third Supplemental Indenture, dated as of March 27, 2012, to the Senior Debt Indenture dated as of July 20, 2007, with HSBC Bank USA, National Association as Trustee relating to the 6.50% Senior Notes due 2020 (incorporated by reference to Exhibit 4.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 5, 2016 and filed with the Commission on October 5, 2016). |
4.8 | Waiver Agreement, dated September 30, 2016, to Fourth Supplemental Indenture, Dated as of November 26, 2012, to the Senior Debt Indenture dated as of July 20, 2007, with HSBC Bank USA, National Association as Trustee relating to the 6% Senior Notes due 2021 (incorporated by reference to Exhibit 4.2 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 5, 2016 and filed with the Commission on October 5, 2016). |
10.1 | Terex Corporation Amended and Restated Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.2 of the Form 10-Q for the quarter ended June 30, 2007 of Terex Corporation, Commission File No. 1-10702). *** |
10.2 | 1996 Terex Corporation Long Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Form S-8 Registration Statement of Terex Corporation, Registration No. 333-03983). *** |
10.3 | Amendment No. 1 to 1996 Terex Corporation Long Term Incentive Plan (incorporated by reference to Exhibit 10.5 of the Form 10-K for the year ended December 31, 1999 of Terex Corporation, Commission File No. 1-10702). *** |
10.4 | Amendment No. 2 to 1996 Terex Corporation Long Term Incentive Plan (incorporated by reference to Exhibit 10.6 of the Form 10-K for the year ended December 31, 1999 of Terex Corporation, Commission File No. 1-10702). *** |
10.5 | Terex Corporation Amended and Restated 2000 Incentive Plan (incorporated by reference to Exhibit 10.3 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 14, 2008 and filed with the Commission on October 17, 2008). *** |
10.6 | Form of Restricted Stock Agreement under the Terex Corporation 2000 Incentive Plan between Terex Corporation and participants of the 2000 Incentive Plan (incorporated by reference to Exhibit 10.4 of the Form 8-K Current Report, Commission File No. 1-10702, dated January 1, 2005 and filed with the Commission on January 5, 2005). *** |
10.7 | Form of Option Agreement under the Terex Corporation 2000 Incentive Plan between Terex Corporation and participants of the 2000 Incentive Plan (incorporated by reference to Exhibit 10.5 of the Form 8-K Current Report, Commission File No. 1-10702, dated January 1, 2005 and filed with the Commission on January 5, 2005). *** |
10.8 | Terex Corporation Amended and Restated Supplemental Executive Retirement Plan (incorporated by reference to Exhibit 10.10 of the Form 10-K for the year ended December 31, 2008 of Terex Corporation, Commission File No. 1-10702). *** |
10.9 | Terex Corporation Amended and Restated Deferred Compensation Plan (incorporated by reference to Exhibit 10.11 of the Form 10-Q for the quarter ended June 30, 2004 of Terex Corporation, Commission File No. 1-10702). *** |
10.10 | Amendment to the Terex Corporation Amended and Restated Deferred Compensation Plan (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 14, 2008 and filed with the Commission on October 17, 2008). *** |
10.11 | Terex Corporation Deferred Compensation Plan (incorporated by reference to Exhibit 10.2 of the Form 8-K Current Report, Commission File No. 1-10702, dated May 9, 2013 and filed with the Commission on May, 14, 2013). *** |
10.12 | Terex Corporation Amended and Restated 2009 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated May 9, 2013 and filed with the Commission on May, 14, 2013). *** |
10.13 | Form of Restricted Stock Agreement (time based) under the Terex Corporation Amended and Restated 2009 Omnibus Incentive Plan between Terex Corporation and participants of the 2009 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.17 of the Form 10-K for the year ended December 31, 2011 of Terex Corporation, Commission File No. 1-10702). *** |
10.14 | Form of Restricted Stock Agreement (performance based) under the Terex Corporation Amended and Restated 2009 Omnibus Incentive Plan between Terex Corporation and participants of the 2009 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.18 of the Form 10-K for the year ended December 31, 2011 of Terex Corporation, Commission File No. 1-10702). *** |
10.15 | Credit Agreement dated as of August 13, 2014, among Terex Corporation, certain of its subsidiaries, the Lenders named therein and Credit Suisse AG, as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated August 15, 2014 and filed with the Commission August 15, 2014). |
10.16 | Guarantee and Collateral Agreement dated as of August 13, 2014, among Terex Corporation, certain of its subsidiaries, and Credit Suisse AG, as Collateral Agent (incorporated by reference to Exhibit 10.2 of the Form 8-K Current Report, Commission File No. 1-10702, dated August 15, 2014 and filed with the Commission August 15, 2014). |
10.17 | Incremental Assumption Agreement and Amendment No. 1, dated as of May 29, 2015, to the Credit Agreement dated as of August 13, 2014, among Terex Corporation, certain of its subsidiaries, the Lenders named therein and Credit Suisse AG, as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated May 28, 2015 and filed with the Commission June 2, 2015). |
10.18 | Amendment No. 2, dated September 30, 2016, to the Credit Agreement dated as of August 13, 2014, among Terex Corporation, certain of its subsidiaries, the Lenders named therein and Credit Suisse AG, as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 5, 2016 and filed with the Commission on October 5, 2016). |
10.19 | Amended and Restated Employment and Compensation Agreement, dated August 9, 2012, between Terex Corporation and Ronald M. DeFeo (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated August 9, 2012 and filed with the Commission on August 13, 2012). *** |
10.20 | Life Insurance Agreement, dated as of October 13, 2006, between Terex Corporation and Ronald M. DeFeo (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 13, 2006 and filed with the Commission on October 16, 2006). *** |
10.21 | Transition and Retirement Agreement between Terex Corporation and Phillip C. Widman, dated October 19, 2012 (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 19, 2012 and filed with the Commission on October 22, 2012). *** |
10.22 | Form of Change in Control and Severance Agreement between Terex Corporation and certain executive officers (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated March 29, 2011 and filed with the Commission on March 31, 2011). *** |
10.23 | Form of Change in Control and Severance Agreement between Terex Corporation and certain executive officers (incorporated by reference to Exhibit 10.2 of the Form 8-K Current Report, Commission File No. 1-10702, dated March 29, 2011 and filed with the Commission on March 31, 2011). *** |
10.24 | Employment Letter from Terex Corporation signed by John Garrison on October 15, 2015 (incorporated by reference to Exhibit 10.1 of the Form 8-K Current Report, Commission File No. 1-10702, dated October 15, 2015 and filed with the Commission on October 19, 2015).*** |
10.25 | Consulting Agreement between Terex Corporation and Ronald M. DeFeo, dated December 11, 2015 (incorporated by reference to Exhibit 10.1 of Form 8-K Current Report, Commission File No. 1-10702, dated December 11, 2015 and filed with the Commission on December 14, 2015). *** |
12 | Calculation of Ratio of Earnings to Fixed Charges. * |
31.1 | Chief Executive Officer Certification pursuant to Rule 13a-14(a)/15d-14(a). * |
31.2 | Chief Financial Officer Certification pursuant to Rule 13a-14(a)/15d-14(a). * |
32 | Chief Executive Officer and Chief Financial Officer Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes – Oxley Act of 2002. ** |
101.INS | XBRL Instance Document. * |
101.SCH | XBRL Taxonomy Extension Schema Document. * |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. * |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. * |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. * |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. * |
* | Exhibit filed with this document. |
** | Exhibit furnished with this document. |
*** | Denotes a management contract or compensatory plan or arrangement. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Earnings: | |||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 13.9 | $ | 55.9 | $ | 38.3 | $ | 169.0 | |||||||
Adjustments: | |||||||||||||||
Undistributed (income) loss of less than 50% owned investments | (0.3 | ) | 1.5 | 0.1 | 1.7 | ||||||||||
Fixed charges | 28.9 | 30.0 | 87.0 | 94.7 | |||||||||||
Earnings (loss) | $ | 42.5 | $ | 87.4 | $ | 125.4 | $ | 265.4 | |||||||
Fixed charges: | |||||||||||||||
Interest expense, including debt discount amortization | 24.0 | 24.3 | $ | 71.5 | $ | 78.5 | |||||||||
Amortization/writeoff of debt issuance costs | 1.4 | 1.4 | 4.5 | 4.0 | |||||||||||
Portion of rental expense representative of interest factor (assumed to be 33%) | 3.5 | 4.3 | 11.0 | 12.2 | |||||||||||
Fixed charges | $ | 28.9 | $ | 30.0 | $ | 87.0 | $ | 94.7 | |||||||
Ratio of earnings to fixed charges | 1.5 | 2.9 | 1.4 | 2.8 |
1. | I have reviewed this quarterly report on Form 10-Q of Terex Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Terex Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ John L. Garrison, Jr. | |
John L. Garrison, Jr. | |
President and | |
Chief Executive Officer | |
November 1, 2016 |
/s/ Kevin P. Bradley | |
Kevin P. Bradley | |
Senior Vice President and | |
Chief Financial Officer | |
November 1, 2016 |
DOCUMENT AND ENTITY INFORMATION - shares shares in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 28, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TEREX CORP | |
Entity Central Index Key | 0000097216 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 105.9 |
CONSOLIDATED BALANCE SHEET Parenthetical - USD ($) shares in Millions, $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Current assets | ||
Trade receivables, allowance (in dollars) | $ 16.2 | $ 20.4 |
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, authorized shares | 300.0 | 300.0 |
Common stock, issued shares | 129.6 | 128.8 |
Treasury stock, shares | 24.6 | 21.1 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Operating Activities | ||
Net income (loss) | $ 90.9 | $ 132.4 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 77.4 | 99.8 |
(Gain) loss on disposition of discontinued operations | (3.5) | (1.5) |
Deferred Taxes | (101.1) | (17.4) |
Gain on sale of assets | 2.4 | (0.9) |
Stock-based compensation expense | 28.2 | 31.9 |
Changes in operating assets and liabilities (net of effects of acquisitions and divestitures): | ||
Trade receivables | (19.2) | (145.1) |
Inventories | (31.5) | (139.8) |
Trade accounts payable | (105.4) | 37.2 |
Customer advances | 49.1 | (35.3) |
Other assets and liabilities | 90.0 | (50.8) |
Other operating activities, net | 13.5 | 32.9 |
Net Cash Provided by (Used in) Operating Activities | 90.8 | (56.6) |
Investing Activities | ||
Capital expenditures | (64.2) | (73.4) |
Acquisitions, net of cash acquired | (3.2) | (71.3) |
Proceeds (payments) from disposition of discontinued operations | 3.5 | (0.2) |
Proceeds from sale of assets | 63.7 | 0.8 |
Other investing activities, net | (2.5) | 0.0 |
Net Cash Provided by (Used in) Investing Activities | (2.7) | (144.1) |
Financing Activities | ||
Repayments of debt | (1,004.8) | (1,029.4) |
Proceeds from issuance of debt | 889.9 | 1,153.6 |
Share repurchases | (80.9) | (50.4) |
Dividends paid | (22.7) | (19.3) |
Other financing activities, net | 1.2 | (1.3) |
Net Cash Provided by (Used in) Financing Activities | (217.3) | 53.2 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 6.4 | (29.6) |
Net Increase (Decrease) in Cash and Cash Equivalents | (122.8) | (177.1) |
Cash and cash equivalents, beginning balance | 466.5 | 478.2 |
Cash and cash equivalents, ending balance | $ 343.7 | $ 301.1 |
STOCK AND ASSET PURCHASE AGREEMENT |
9 Months Ended |
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Sep. 30, 2016 | |
Business Combinations [Abstract] | |
TERMINATION OF BUSINESS COMBINATION AGREEMENT AND PLAN OF MERGER | STOCK AND ASSET PURCHASE AGREEMENT On May 16, 2016, as a result of entering into a Stock and Asset Purchase Agreement (the “SAPA”) with Konecranes Plc, a Finnish public company limited by shares (“Konecranes”), Terex and Konecranes terminated the Business Combination Agreement and Plan of Merger (the “BCA”) announced on August 11, 2015, with no penalties incurred by either party. Pursuant to the SAPA, Terex is selling its Material Handling and Port Solutions business (“MHPS”) to Konecranes for total consideration of approximately $1.5 billion (the “Transaction”). Pursuant to the SAPA, as amended, the consideration being paid is comprised of $595 million and €200 million in cash and 19.6 million newly created Class B shares of Konecranes. The value of the shares is not guaranteed until closing. The purchase price is subject to post-closing adjustments based upon the level of net working capital and cash and debt in MHPS at the closing date. In addition, the number of shares to be issued may be adjusted depending on the performance of the MHPS business and Konecranes in 2016. Also, certain purchase price adjustments may occur based on possible outcomes related to antitrust divestitures. Upon completion of the Transaction, Terex will own approximately 25% of the outstanding shares of Konecranes and have the right to nominate two directors to the Konecranes Board. Terex expects to account for the Company’s investment in Konecranes using the equity-method of accounting. The Transaction, which is subject to customary regulatory approvals, is expected to close in early 2017. As part of the Transaction, Konecranes’ shareholders have voted to amend the articles of association to create a new class of B shares and Terex and Konecranes will enter into a shareholder’s agreement ("SHA"). Pursuant to the SHA and amended articles of association, Terex will be entitled to nominate up to two members to the Board of Directors of Konecranes as long as Terex’s or its group companies' shareholding in Konecranes exceeds certain agreed thresholds. Terex's initial Board nominees will be current Terex Board members David Sachs and Oren Shaffer as of closing of the Transaction. Terex will also be subject to certain standstill obligations for an initial four-year period, followed by some limited obligations after the initial four-year period, and a non-compete obligation with respect to the MHPS business for a two-year period. Terex will also have customary registration rights pursuant to a registration rights agreement to be entered into in connection with the closing of the Transaction. SAPA and BCA Related Expenses Terex has incurred transaction costs directly related to the SAPA of $1.3 million and $2.5 million for the three and nine months ended September 30, 2016, respectively, which amounts are recorded in Income (loss) from discontinued operations - net of tax in the Condensed Consolidated Statement of Comprehensive Income (Loss). Terex has incurred transaction costs directly related to the terminated BCA of $0.2 million and $12.8 million for the three and nine months ended September 30, 2016, respectively, and $8.6 million and $9.5 million for the three and nine months ended September 30, 2015 which amounts are recorded in Other income (expense) - net in the Condensed Consolidated Statement of Comprehensive Income (Loss). |
BASIS OF PRESENTATION |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements of Terex Corporation and subsidiaries as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by accounting principles generally accepted in the United States of America to be included in full-year financial statements. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2015 has been derived from and should be read in conjunction with the audited Consolidated Balance Sheet as of that date, but does not include all disclosures required by accounting principles generally accepted in the United States. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Condensed Consolidated Financial Statements include the accounts of Terex Corporation, its majority-owned subsidiaries and other controlled subsidiaries (“Terex” or the “Company”). The Company consolidates all majority-owned and controlled subsidiaries, applies the equity method of accounting for investments in which the Company is able to exercise significant influence, and applies the cost method for all other investments. All intercompany balances, transactions and profits have been eliminated. In the opinion of management, all adjustments considered necessary for the fair presentation of these interim financial statements have been made. Except as otherwise disclosed, all such adjustments consist only of those of a normal recurring nature. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of results that may be expected for the year ending December 31, 2016. Cash and cash equivalents at September 30, 2016 and December 31, 2015 include $9.8 million and $18.0 million, respectively, which were not immediately available for use. These consist primarily of cash balances held in escrow to secure various obligations of the Company. Reclassifications. In conjunction with the adoption of new accounting standards, certain debt issuance costs for the three and nine months ended September 30, 2015 as well as certain amounts as of December 31, 2015, have been reclassified to conform to the current year’s presentation. Effective January 1, 2016, the Company reorganized the reportable segments to align with its new management reporting structure and business activities which resulted in the scrap material handling business in its former Construction segment being reassigned to its Materials Processing (“MP”) segment, certain non-operations related assets in the U.K. being reassigned from its former Construction segment to Corporate and Other category, and parts of its North America services business formerly part of its Cranes segment being reassigned into its Aerial Work Platforms (“AWP”) and its former MHPS segments. Historical results have been reclassified to give effect to these changes. Effective as of June 30, 2016, further adjustments were made to the Company’s reportable segments as a result of definitive agreements to sell portions of its business and reorganize the management structure of other portions of its business, as discussed below. On May 16, 2016, the Company entered into an agreement to sell its MHPS business to Konecranes. As a result, the former MHPS segment is reported in discontinued operations in the Condensed Consolidated Statement of Comprehensive Income for all periods presented, and in assets and liabilities held for sale in the Condensed Consolidated Balance Sheet at September 30, 2016 and December 31, 2015, and is no longer a reportable segment. During June and July of 2016, the Company entered into agreements to sell certain portions of its former Construction segment. As a result, concrete mixer trucks and concrete paver product lines from the former Construction segment have been reassigned to the Company’s MP segment and remaining product lines within the former Construction segment, such as loader backhoes and site dumpers, have been reassigned to the Corporate and Other category, as a result of changes in management responsibilities and reporting associated with these product lines, and the effect of these changes has been shown in all periods presented. Assets and liabilities associated with the portions of the former Construction segment to be sold are reported in assets and liabilities held for sale in the Condensed Consolidated Balance Sheet at September 30, 2016. See Note A - “Stock and Asset Purchase Agreement”, Note C - “Business Segment Information”, Note E - “Discontinued Operations and Assets and Liabilities Held for Sale” and Note J - “Goodwill and Intangible Assets, Net” for further information. Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14, “Deferral of the Effective Date”, which amends ASU 2014-09. As a result, the effective date will be the first quarter of fiscal year 2018 with early adoption permitted in the first quarter of fiscal year 2017. Adoption will use one of two retrospective application methods. The Company is in the process of completing its initial analysis identifying the revenue streams that will be impacted by the adoption of this new standard and is currently analyzing the impact to its consolidated financial statements and footnote disclosures. In April 2015, the FASB issued ASU 2015-03, “Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs,” (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs related to borrowings be presented in the balance sheet as a direct deduction from the carrying amount of the borrowing, consistent with debt discounts. The ASU does not affect the amount or timing of expenses for debt issuance costs. The Company adopted ASU 2015-03 as of January 1, 2016 on a retrospective basis, by recasting all prior periods shown to reflect the effect of adoption. As a result of adoption, $21.1 million was reclassified from Other assets to Long-term debt, less current portion at December 31, 2015. Unamortized costs related to securing our revolving line of credit will continue to be presented in Other assets. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” (“ASU 2015-11”). ASU 2015-11 simplifies the subsequent measurement of inventory by using only the lower of cost or net realizable value. The ASU defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The effective date will be the first quarter of fiscal year 2017 with early adoption permitted. ASU 2015-11 should be applied prospectively. The Company is evaluating the impact adoption of this new standard will have on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” (“ASU 2015-17”). The amendments in ASU 2015-17 eliminate the current requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet and instead require all deferred tax assets and liabilities to be classified as noncurrent. The Company adopted ASU 2015-17 as of January 1, 2016 on a prospective basis, which resulted in the reclassification of the Company’s current deferred tax assets and current deferred tax liabilities to non-current deferred tax assets or non-current deferred tax liabilities on its Condensed Consolidated Balance Sheet. No prior periods were retrospectively adjusted. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," (“ASU 2016-01”). The amendments in ASU 2016-01, among other things, require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; require public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes; require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); and eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost. The effective date will be the first quarter of fiscal year 2018. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize assets and liabilities on the balance sheet for leases with lease terms greater than twelve months and disclose key information about leasing arrangements. The effective date will be the first quarter of fiscal year 2019, with early adoption permitted. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815),” (“ASU 2016-05”). ASU 2016-05 provides guidance clarifying that novation of a derivative contract (i.e. a change in counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. The effective date will be the first quarter of fiscal year 2017, with early adoption permitted. Adoption is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-06, “Derivatives and Hedging (Topic 815),” (“ASU 2016-06”). ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by clarifying that an exercise contingency does not need to be evaluated to determine whether it relates to interest rates and credit risk in an embedded derivative analysis. The effective date will be the first quarter of fiscal year 2017, with early adoption permitted. Adoption will not have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, “Investments-Equity Method and Joint Ventures (Topic 323),” (“ASU 2016-07”). ASU 2016-07 eliminates the retroactive adjustments to an investment qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. The effective date will be the first quarter of fiscal year 2017. Adoption is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” (“ASU 2016-08”). ASU 2016-08 further clarifies principal and agent relationships within ASU 2014-09. Similar to ASU 2014-09, the effective date will be the first quarter of fiscal year 2018 with early adoption permitted in the first quarter of fiscal year 2017. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” (“ASU 2016-09”). ASU 2016-09 is intended to simplify several aspects related to how share-based payments are accounted for and presented in the financial statements, such as requiring all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and allowing a policy election to account for forfeitures as they occur. In addition, all related cash flows resulting from share-based payments will be reported as operating activities on the statement of cash flows. ASU 2016-09 could result in increased volatility of the Company’s provision for income taxes and earnings per share, depending on the Company’s share price at exercise or vesting of share-based awards compared to grant date. The effective date will be the first quarter of fiscal year 2017, with early adoption permitted. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing,” (“ASU 2016-10”). The amendments in ASU 2016-10 are expected to reduce the cost and complexity of applying the guidance on identifying promised goods or services in contracts with customers and to improve the operability and understandability of licensing implementation guidance related to the entity's intellectual property. Similar to ASU 2014-09, the effective date will be the first quarter of fiscal year 2018 with early adoption permitted in the first quarter of fiscal year 2017. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients,” (“ASU 2016-12”). ASU 2016-12 provides clarification on assessing collectability, presentation of sales tax, non-cash consideration, and transition methods upon adoption of this ASU. Similar to ASU 2014-09, the effective date for ASU 2016-12 will be the first quarter of fiscal year 2018 with early adoption permitted. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” (“ASU 2016-13”). ASU 2016-13 sets forth a “current expected credit loss” model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. The guidance in this new standard replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. The effective date will be the first quarter of fiscal year 2020. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments,” (“ASU 2016-15”). ASU 2016-15 reduces the existing diversity in practice in financial reporting by clarifying existing principles in ASC 230, “Statement of Cash Flows,” and provides specific guidance on certain cash flow classification issues. The effective date for ASU 2016-15 will be the first quarter of fiscal year 2018, with early adoption permitted. ASU 2016-15 will be applied retrospectively and may modify the Company's current disclosures and reclassifications within the consolidated statement of cash flows, but is not expected to have a material effect on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740) - Intra-Entity Transfer of Assets Other than Inventory,” (“ASU 2016-16”). ASU 2016-16 requires recognition of current and deferred income taxes resulting from an intra-entity transfer of any asset (excluding inventory) when the transfer occurs. This is a change from existing GAAP which prohibits recognition of current and deferred income taxes until the asset is sold to a third party. The effective date for ASU 2016-16 will be the first quarter of fiscal year 2018 with early adoption permitted. Adoption will be applied on a modified retrospective basis, resulting in a cumulative-effect adjustment directly to retained earnings. The Company is evaluating the impact that adoption of this new standard will have on its consolidated financial statements. Accrued Warranties. The Company records accruals for potential warranty claims based on its claims experience. The Company’s products are typically sold with a standard warranty covering defects that arise during a fixed period. Each business provides a warranty specific to the products it offers. The specific warranty offered by a business is a function of customer expectations and competitive forces. Warranty length is generally a fixed period of time, a fixed number of operating hours, or both. A liability for estimated warranty claims is accrued at the time of sale. The non-current portion of the warranty accrual is included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheet. The liability is established using historical warranty claim experience for each product sold. Historical claim experience may be adjusted for known design improvements or for the impact of unusual product quality issues. Warranty reserves are reviewed quarterly to ensure critical assumptions are updated for known events that may affect the potential warranty liability. The following table summarizes the changes in the product warranty liability (in millions):
Fair Value Measurements. Assets and liabilities measured at fair value on a recurring basis under the provisions of Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement and Disclosure” (“ASC 820”) include interest rate swaps and foreign currency forward contracts discussed in Note K – “Derivative Financial Instruments.” These contracts are valued using a market approach, which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. ASC 820 establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Determining which category an asset or liability falls within this hierarchy requires judgment. The Company evaluates its hierarchy disclosures each quarter. |
BUSINESS SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Terex is a global manufacturer of lifting and material processing products and services that deliver lifecycle solutions to maximize customer return on investment. The Company delivers lifecycle solutions to a broad range of industries, including the construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining industries. Historically, the Company operated in five reportable segments: (i) AWP; (ii) Cranes; (iii) MHPS; (iv) MP; and (v) Construction. Subsequent to the reorganization discussed in Note B - “Basis of Presentation”, the Company now operates in three reportable segments: (i) AWP; (ii) Cranes; and (iii) MP. The AWP segment designs, manufactures, services and markets aerial work platform equipment, telehandlers and light towers. Customers use these products to construct and maintain industrial, commercial and residential buildings and facilities and for other commercial operations, as well as in a wide range of infrastructure projects. The Cranes segment designs, manufactures, services, refurbishes and markets mobile telescopic cranes, tower cranes, lattice boom crawler cranes, lattice boom truck cranes, utility equipment and truck-mounted cranes (boom trucks), as well as their related components and replacement parts. Customers use these products primarily for construction, repair and maintenance of commercial buildings, manufacturing facilities, construction and maintenance of utility and telecommunication lines, tree trimming and certain construction and foundation drilling applications and a wide range of infrastructure projects. The MP segment designs, manufactures and markets materials processing and specialty equipment, including crushers, washing systems, screens, apron feeders, material handlers, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, and their related components and replacement parts. Customers use these products in construction, infrastructure and recycling projects, in various quarrying and mining applications, as well as in landscaping and biomass production industries, material handling applications, and in building roads and bridges. The Company assists customers in their rental, leasing and acquisition of its products through Terex Financial Services (“TFS”). TFS uses its equipment financing experience to provide financing solutions to customers who purchase the Company’s equipment. TFS is included in the Corporate and Other category. Business segment information is presented below (in millions):
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INCOME TAXES |
9 Months Ended |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES During the three months ended September 30, 2016, the Company recognized income tax benefit of $19.3 million on income of $13.9 million, an effective tax rate of (138.8)% as compared to income tax expense of $25.6 million on income of $55.9 million, an effective tax rate of 45.8%, for the three months ended September 30, 2015. The lower effective tax rate for the three months ended September 30, 2016 was primarily due to tax benefits from prior year net operating loss carryforwards and favorable geographic mix of earnings. During the nine months ended September 30, 2016, the Company recognized income tax benefit of $82.5 million on income of $38.3 million, an effective tax rate of (215.4)% as compared to income tax expense of $64.5 million on income of $169.0 million, an effective tax rate of 38.2%, for the nine months ended September 30, 2015. The lower effective tax rate for the nine months ended September 30, 2016 was primarily due to the valuation allowance release for the German and Italian subsidiaries of the Company and other tax benefits from prior year net operating loss carryforwards. The change in judgment regarding the realization of deferred tax assets in Germany and Italy was due to the anticipated disposition of the MHPS business pursuant to the SAPA, recent earnings history, and expected future income supporting the more likely than not assessment that the deferred tax assets will be realized. |
DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALEUED OPERATIONS | DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE MHPS Pursuant to the SAPA on May 16, 2016, Terex has agreed to sell its entire MHPS business to Konecranes for total consideration of approximately $1.5 billion. See Note A - “Stock and Asset Purchase Agreement” for further information on this Transaction. The sale of the Company’s MHPS business to Konecranes represents a significant strategic shift in the Company’s business away from universal, process, mobile harbor and ship-to-shore cranes that will have a major effect on the Company’s future operating results, primarily because the MHPS business represented the entirety of one of the Company’s five previous reportable operating segments and comprised two of the Company’s six previous reporting units, representing a significant portion of the Company’s revenues and assets, and is therefore accounted for as a discontinued operation. MHPS products include universal cranes, process cranes and components, such as rope hoists, chain hoists, light crane systems, travel units and electric motors, primarily for industrial applications, and mobile harbor cranes, ship-to-shore gantry cranes, rubber tired and rail mounted gantry cranes, straddle carriers, sprinter carriers, reach stackers, container handlers, general cargo lift trucks, automated stacking cranes, automated guided vehicles and software solutions for logistics terminals. Upon completion of the Transaction, Terex will own approximately 25% of the outstanding shares of Konecranes and have the right to nominate two directors to the Konecranes Board. Upon closing of the Transaction, Terex expects to account for the investment in Konecranes using the equity-method of accounting. The Transaction, which is subject to customary regulatory approvals, is expected to close in early 2017. As a result of the SAPA, the Company recognized a pre-tax charge of $55.6 million ($55.6 million after-tax) in the second quarter of 2016 to write-down the MHPS disposal group to fair value, less costs to sell. The Company estimated the amount of sale proceeds using the cash proceeds plus an average of closing stock prices in the month of June 2016 for Konecranes common shares as traded on the Nasdaq Helsinki stock exchange (under the symbol “KCR1V”) multiplied by 19.6 million Class B shares expected to be received. In the third quarter of 2016, the Company reversed the pre-tax charge of $55.6 million ($55.6 million after-tax) recognized in the second quarter of 2016 due primarily to improvement in Konecranes’ stock price in the three months ended September 30, 2016. The Company estimated the amount of sale proceeds as calculated above; however, it replaced the average of Konecranes closing stock prices with an average of closing stock prices in the month of September 2016. Even if the average Konecranes stock price had been 10% lower during this period, the Company would have reversed the entire pre-tax charge recognized in the prior quarter. Even if the U.S. Dollar versus the Euro exchange rate decreased 5%, the Company would have reversed the entire pre-tax charge recognized in the prior quarter. The Company can only reverse the prior pre-tax charge, however, no gain can be recorded until the Transaction closes. The volatility related to Konecranes’ stock price could result in recognition of a future pre-tax charge. As a result of the SAPA, the Company has determined that amounts invested in the MHPS business are no longer indefinitely reinvested. Accordingly, the Company recorded previously unrecognized U.S. and foreign deferred taxes associated with its investment in MHPS subsidiaries. The effective tax rate on income from discontinued operations in 2016 differs from the statutory rate, in part, due to the recognition of these deferred taxes. In connection with the Company’s purchase of Demag Cranes AG (a component of MHPS), certain former shareholders of Demag Cranes AG initiated proceedings against the Company alleging that the Company did not pay fair value for the shares of Demag Cranes AG. Upon completion of the Transaction, the Company will retain any liability related to such proceedings. The Company believes it did pay fair value for the shares of Demag Cranes AG and that no further payment from the Company to any former shareholders of Demag Cranes AG is required. While the Company believes the position of the former shareholders of Demag Cranes AG is without merit and is vigorously opposing it, no assurance can be given as to the final resolution of this dispute or that the Company will not ultimately be required to make an additional payment as a result of such dispute, which amount could be material. Income (loss) from discontinued operations The following amounts related to the discontinued operations were derived from historical financial information and have been segregated from continuing operations and reported as discontinued operations in the Condensed Consolidated Statement of Comprehensive Income (in millions):
Construction During June and July of 2016, the Company entered into agreements to sell certain portions of its former Construction segment, including the following products: midi/mini excavators, wheeled excavators, compact wheel loaders, and components, primarily in Europe. In the nine months ended September 30, 2016, the Company recognized a loss of $8.1 million ($5.6 million after-tax) related to disposal of its components assets, of which $4.0 million was recorded in Cost of goods sold and $4.1 million was recorded in Selling, general and administrative expenses in the Condensed Consolidated Statement of Comprehensive Income (Loss). On September 30, 2016, the Company received total proceeds of approximately $60 million related to the sale of its midi/mini excavators, wheeled excavators, and compact wheel loader business shares and assets. Because the sale wasn’t effective until October 1, 2016, all of the proceeds were recorded in Other current liabilities in the Condensed Consolidated Balance Sheet. The remaining unsold assets and liabilities at September 30, 2016 are reported below and in the Condensed Consolidated Balance Sheet as held for sale. The operating results for construction product lines are reported in continuing operations, within the Corporate and Other category in our segment disclosures. Assets and liabilities held for sale Assets and liabilities held for sale consist of the Company’s MHPS assets and liabilities that are being sold to Konecranes and certain assets and liabilities of the Company’s former Construction segment, primarily in Europe, which were sold on October 1, 2016. Such assets and liabilities are classified as held for sale upon meeting the requirements of ASC 360 - “Property, Plant and Equipment”, and are recorded at lower of carrying amounts or fair value less costs to sell. Assets are no longer depreciated once classified as held for sale. The following table provides the amounts of assets and liabilities held for sale in the Condensed Consolidated Balance Sheet (in millions):
The following table provides amounts of cash and cash equivalents presented in the Consolidated Statement of Cash Flows (in millions):
Cash and cash equivalents held for sale at September 30, 2016 and December 31, 2015 include $10.4 million and $9.8 million, respectively, which were not immediately available for use. These consist primarily of cash balances held in escrow to secure various obligations of the Company. The following table provides supplemental cash flow information related to discontinued operations (in millions):
Other
During the nine months ended September 30, 2016, the Company recognized a gain on disposition of discontinued operations - net of tax of $3.5 million related to the sale of its Atlas heavy construction equipment and knuckle-boom cranes businesses, due to contractual earnout payments, and from our truck business. During the nine months ended September 30, 2015 the Company recognized a gain on disposition of discontinued operations - net of tax of $1.5 million due primarily to a gain of $2.8 million related to the sale of its Atlas heavy construction equipment and knuckle-boom cranes businesses based on contractually obligated earnings based payments from the purchaser, partially offset by a loss of $1.3 million related to sale of its truck business, including settlement of certain disputes in the asset sale agreement. |
EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE
The following table provides information to reconcile amounts reported on the Condensed Consolidated Statement of Comprehensive Income (Loss) to amounts used to calculate earnings per share attributable to Terex Corporation Common Stockholders (in millions):
Weighted average options to purchase 0.1 million of the Company’s common stock, par value $0.01 per share (“Common Stock”), were outstanding during the nine months ended September 30, 2016 , but were not included in the computation of diluted shares as the effect would be anti-dilutive. Weighted average options to purchase 0.1 million of the Company’s common stock, par value $0.01 per share (“Common Stock”), were outstanding during the three and nine months ended September 30, 2015 , respectively, but were not included in the computation of diluted shares as the effect would be anti-dilutive. Weighted average restricted stock awards of 0.5 million and 0.7 million were outstanding during the three and nine months ended September 30, 2016, respectively, but were not included in the computation of diluted shares because the effect would be anti-dilutive or performance targets were not yet achieved for awards contingent upon performance. Weighted average restricted stock awards of 0.8 million were outstanding during the three and nine months ended September 30, 2015, but were not included in the computation of diluted shares because the effect would be anti-dilutive or performance targets were not yet achieved for awards contingent upon performance. ASC 260, “Earnings per Share,” requires that employee stock options and non-vested restricted shares granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future services that the Company has not yet recognized and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The Company includes the impact of pro forma deferred tax assets in determining the amount of tax benefits for potential windfalls and shortfalls (the differences between tax deductions and book expense) in this calculation. In connection with settlement of the 4% Convertible Senior Subordinated Notes due 2015 (the “4% Convertible Notes”) the Company issued 3.4 million shares of common stock in June 2015. See Note M – “Long-Term Obligations.” Included in the computation of diluted shares for the nine months ended September 30, 2015 was 1.9 million shares that were contingently issuable prior to conversion. |
FINANCE RECEIVABLES |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCE RECEIVABLES | FINANCE RECEIVABLES TFS leases equipment and provides financing to customers for the purchase and use of Terex equipment. In the normal course of business, TFS assesses credit risk, establishes structure and pricing of financing transactions, documents the finance receivable, records and funds the transactions. TFS bills and collects cash from the end customer. TFS primarily conducts on-book business in the U.S., with limited business in China, the United Kingdom, and Germany. TFS does business with various types of customers consisting of rental houses, end user customers, and Terex equipment dealers. The Company’s net finance receivable balances include both sales-type leases and commercial loans. Finance receivables that management intends to hold until maturity are stated at their outstanding unpaid principal balances, net of an allowance for loan losses as well as any deferred fees and costs. Finance receivables originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. During the three and nine months ended September 30, 2016 the Company sold finance receivables of $81.1 million and $191.3 million, respectively, to third party financial institutions. During the three and nine months ended September 30, 2015 the Company sold finance receivables of $13.1 million and $34.5 million, respectively, to third party financial institutions. At September 30, 2016, the Company had $10.9 million of held for sale finance receivables recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheet. Revenue attributable to finance receivables is recognized on the accrual basis using the effective interest method. TFS bills customers and accrues interest income monthly on the unpaid principal balance. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has significant doubts about further collectibility of the contractual payments, even though the loan may be currently performing. A receivable may remain on accrual status if it is in the process of collection and is either guaranteed or secured. Interest received on non-accrual finance receivables is typically applied against principal. Finance receivables are generally restored to accrual status when the obligation is brought current and the borrower has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. The Company has a history of enforcing the terms of these separate financing agreements. Finance receivables, net consisted of the following (in millions):
Credit losses are charged against the allowance for credit losses when management ceases active collection efforts. Subsequent recoveries, if any, are credited to earnings. The allowance for credit losses is maintained at a level set by management which represents evaluation of known and inherent risks in the portfolio at the consolidated balance sheet date. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, market-based loss experience, specific customer situations, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective, since it requires estimates that may be susceptible to significant change. Although specific and general loss allowances are established in accordance with management’s best estimate, actual losses are dependent upon future events and, as such, further additions to or decreases from the level of loss allowances may be necessary. The following table presents an analysis of the allowance for credit losses:
The Company utilizes a two tier approach to set allowances: (1) identification of impaired finance receivables and establishment of specific loss allowances on such receivables; and (2) establishment of general loss allowances on the remainder of its portfolio. Specific loss allowances are established based on circumstances and factors of specific receivables. The Company regularly reviews the portfolio which allows for early identification of potentially impaired receivables. The process takes into consideration, among other things, delinquency status, type of collateral and other factors specific to the borrower. General loss allowance levels are determined based upon a combination of factors including, but not limited to, TFS experience, general market loss experience, performance of the portfolio, current economic conditions, and management's judgment. The two primary risk characteristics inherent in the portfolio are (1) the customer's ability to meet contractual payment terms, and (2) the liquidation values of the underlying primary and secondary collaterals. The Company records a general or unallocated loss allowance that is calculated by applying the reserve rate to its portfolio, including the unreserved balance of accounts that have been specifically reserved for. All delinquent accounts are reviewed for potential impairment. A receivable is deemed to be impaired when based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The amount of impairment is measured as the difference between the balance outstanding and the underlying collateral value of the equipment being financed, as well as any other collateral. All finance receivables identified as impaired are evaluated individually. Generally, the Company does not change the terms and conditions of existing finance receivables. The following tables present individually impaired finance receivables (in millions):
The average recorded investment for impaired finance receivables was $1.4 million for sales-type leases and $0.2 million for commercial loans at September 30, 2015, which were fully reserved. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in millions):
Accounts are considered delinquent when the billed periodic payments of the finance receivables exceed 30 days past the due date. The following table presents analysis of aging of recorded investment in finance receivables (in millions):
At September 30, 2016 and December 31, 2015, $0.2 million and $1.0 million, respectively, of commercial loans were 90 days or more past due. Commercial loans in the amount of $6.9 million and $4.8 million were on non-accrual status as of September 30, 2016 and December 31, 2015, respectively. At September 30, 2016 and December 31, 2015 there were $0.4 million and $1.2 million, respectively, of sales-type lease receivables which were 90 days or more past due. Sales-type leases in the amount of $0.9 million and $1.3 million were on non-accrual status as of September 30, 2016 and December 31, 2015, respectively. Credit Quality Information Credit quality is reviewed on a monthly basis based on customers’ payment status. In addition to the delinquency status, any information received regarding a customer (such as bankruptcy filings, etc.) will also be considered to determine the credit quality of the customer. Collateral asset values are also monitored regularly to determine the potential loss exposures on any given transaction. The Company uses the following internal credit quality indicators, based on an internal risk rating system, using certain external credit data, listed from the lowest level of risk to highest level of risk. The internal rating system considers factors affecting specific borrowers’ ability to repay. Finance receivables by risk rating (in millions):
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INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consist of the following (in millions):
Reserves for lower of cost or market value, excess and obsolete inventory were $95.1 million and $76.8 million at September 30, 2016 and December 31, 2015, respectively. |
PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment – net consist of the following (in millions):
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GOODWILL AND INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL | GOODWILL AND INTANGIBLE ASSETS, NET An analysis of changes in the Company’s goodwill by business segment is as follows (in millions):
(1) Includes a $17.9 million reclassification of goodwill from Cranes to discontinued operations, and a $0.9 million reclassification of goodwill from Cranes to AWP as a result of segment realignments. See Note C - “Business Segment Information”. (2) During the second quarter of 2016 the Company wrote off $132.8 million of fully impaired goodwill associated with its former Construction segment. The Company performs its annual goodwill impairment test during the fourth quarter. This testing has not yet been completed for 2016, and while there is no evidence of impairment, due to uncertainty and short-term volatility in the cranes market, the Company will be closely monitoring the Cranes reporting unit in the coming quarters. If the Cranes reporting unit is unable to achieve its projected cash flows, the outcome of any prospective test may result in the Company recording goodwill impairment charges in future periods. Intangible assets, net were comprised of the following as of September 30, 2016 and December 31, 2015 (in millions):
Estimated aggregate intangible asset amortization expense (in millions) for each of the five years below is:
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DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company enters into two types of derivatives to hedge its interest rate exposure and foreign currency exposure: hedges of fair value exposures and hedges of cash flow exposures. Fair value exposures relate to recognized assets or liabilities and firm commitments, while cash flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities or forecasted transactions. The Company operates internationally, with manufacturing and sales facilities in various locations around the world, and uses certain financial instruments to manage its foreign currency, interest rate and fair value exposures. To qualify a derivative as a hedge at inception and throughout the hedge period, the Company formally documents the nature and relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions, and the method of assessing hedge effectiveness. Additionally, for hedges of forecasted transactions, significant characteristics and expected terms of a forecasted transaction must be specifically identified, and it must be probable that each forecasted transaction will occur. If it is deemed probable the forecasted transaction will not occur, then the gain or loss would be recognized in current earnings. Financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged, both at inception and throughout the hedged period. The Company does not engage in trading or other speculative use of financial instruments. The Company has used and may use forward contracts and options to mitigate its exposure to changes in foreign currency exchange rates on third party and intercompany forecasted transactions. Primary currencies to which the Company is exposed are the Euro, British Pound and Australian Dollar. The effective portion of unrealized gains and losses associated with forward contracts and intrinsic value of option contracts are deferred as a component of Accumulated other comprehensive income (“AOCI”) until the underlying hedged transactions are reported in the Company’s Condensed Consolidated Statement of Comprehensive Income. The Company has used and may use interest rate swaps to mitigate its exposure to changes in interest rates related to existing issuances of variable rate debt and changes in the fair value of fixed rate debt. Primary exposure includes movements in the U.S. prime rate, Commercial Paper rate, London Interbank Offered Rate (“LIBOR”) and Euro Interbank Offered Rate (“EURIBOR”). The effective portion of interest rate derivatives designated as cash flow hedges is deferred in AOCI and is recognized in earnings as hedged transactions occur. Changes in fair value associated with contracts deemed ineffective are recognized in earnings immediately. In the Condensed Consolidated Statement of Comprehensive Income, the Company records hedging activity related to debt instruments and hedging activity related to foreign currency and interest rate swaps in the accounts for which the hedged items are recorded. On the Condensed Consolidated Statement of Cash Flows, the Company records cash flows from hedging activities in the same manner as it records the underlying item being hedged. The Company is party to currency exchange forward contracts that generally mature within one year to manage its exposure to changing currency exchange rates. At September 30, 2016, the Company had $256.6 million notional amount of currency exchange forward contracts outstanding that were initially designated as hedge contracts, most of which mature on or before September 30, 2017. The fair market value of these contracts at September 30, 2016 was a net loss of $3.1 million. At September 30, 2016, $185.0 million notional amount ($3.0 million of fair value loss) of these forward contracts have been designated as, and are effective as, cash flow hedges of forecasted and specifically identified transactions. During 2016 and 2015, the Company recorded the change in fair value for these cash flow hedges to AOCI and reclassified to earnings a portion of the deferred gain or loss from AOCI as the hedged transactions occurred and were recognized in earnings. The Company records foreign exchange contracts at fair value on a recurring basis. The foreign exchange contracts designated as hedging instruments are categorized under Level 2 of the ASC 820 hierarchy and are recorded at September 30, 2016 and December 31, 2015 as a net liability of $3.1 million and net asset of $3.1 million, respectively. See Note B – “Basis of Presentation,” for an explanation of the ASC 820 hierarchy. Fair values of these foreign exchange forward contracts are derived using quoted forward foreign exchange prices to interpolate values of outstanding trades at the reporting date based on their maturities. The Company uses forward foreign exchange contracts to mitigate its exposure to changes in foreign currency exchange rates on third party and intercompany forecasted transactions and balance sheet exposures. Certain of these contracts have not been designated as hedging instruments. The majority of gains and losses recognized from foreign exchange contracts not designated as hedging instruments were offset by changes in the underlying hedged items, resulting in no material net impact on earnings. Changes in the fair value of these derivative financial instruments are recognized as gains or losses in Cost of goods sold or Other income (expense) – net in the Condensed Consolidated Statement of Comprehensive Income. Concurrent with the 2014 sale of a majority stake in A.S.V., Inc. to Manitex International, Inc. (“Manitex”), the Company invested in a subordinated convertible promissory note from Manitex, which included an embedded derivative, the conversion feature. At the date of issuance, the embedded derivative was measured at fair value. The derivative is categorized under Level 2 of the ASC 820 hierarchy and marked-to-market each period with changes in fair value recorded in Other income (expense) - net in the Condensed Consolidated Statement of Comprehensive Income. The Company entered into certain interest rate swap agreements to offset the variability of cash flows due to changes in the floating rate of borrowings under its Securitization Facility, which was terminated on May 31, 2016. See Note M – “Long-Term Obligations,” for additional information on the Securitization Facility. The interest rate swaps were designated as cash flow hedges of the changes in the cash flows of interest rate payments on debt associated with changes in floating interest rates. Changes in the fair value of these derivative financial instruments were recognized as gains or losses in Cost of goods sold in the Condensed Consolidated Statement of Comprehensive Income. The Company recorded these contracts at fair value on a recurring basis. At September 30, 2016, the Company had no interest rate swap contracts outstanding, because it terminated the Securitization Facility and concurrently settled its outstanding interest rate swap contracts. The interest rate swap contracts designated as hedging instruments were categorized under Level 2 of the ASC 820 hierarchy and were recorded at December 31, 2015 as a net asset of $0.2 million. The fair value of these contracts was derived using quoted interest rate swap prices at the reporting date based on their maturities. The following table provides the location and fair value amounts of derivative instruments designated as hedging instruments that are reported in the Condensed Consolidated Balance Sheet (in millions):
The following table provides the location and fair value amounts of derivative instruments not designated as hedging instruments that are reported in the Condensed Consolidated Balance Sheet (in millions):
The following tables provide the effect of derivative instruments that are designated as hedges in the Condensed Consolidated Statement of Comprehensive Income and AOCI (in millions):
The following table provides the effect of derivative instruments that are not designated as hedges in the Condensed Consolidated Statement of Comprehensive Income (in millions):
Counterparties to the Company’s currency exchange forward contracts are major financial institutions with credit ratings of investment grade or better and no collateral is required. There are no significant risk concentrations. Management continues to monitor counterparty risk and believes the risk of incurring losses on derivative contracts related to credit risk is unlikely and any losses would be immaterial. Unrealized net gains (losses), net of tax, included in AOCI are as follows (in millions):
Within the unrealized net gains (losses) included in AOCI as of September 30, 2016, it is estimated that $2.7 million of losses are expected to be reclassified into earnings in the next twelve months. |
RESTRUCTURING AND OTHER CHARGES |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING AND OTHER CHARGES | RESTRUCTURING AND OTHER CHARGES The Company continually evaluates its cost structure to be appropriately positioned to respond to changing market conditions. From time to time the Company may initiate certain restructuring programs to better utilize its workforce and optimize facility utilization to match the demand for its products. Restructuring During the third quarter of 2015, the Company established a restructuring program in the MP segment to close one of its manufacturing facilities in the U.S., consolidate production with other U.S. sites and exit the hand-fed chipper line of products. By consolidating operations, the Company has optimized its use of resources, eliminated areas of duplication and operates more efficiently and effectively. The program cost $0.9 million, resulted in the reduction of 38 team members and was completed in 2015. During the third quarter of 2015, the Company established a restructuring program across multiple operating segments to centralize transaction processing and accounting functions into shared service centers. The program cost $0.9 million, resulted in the reduction of 69 team members and was completed in 2016. The segment breakdown of this program cost is as follows: Cranes ($0.8 million) and MP ($0.1 million). During the second quarter of 2016, the Company established restructuring programs in its Cranes segment to transfer production between existing facilities in order to maximize labor efficiencies and reduce overhead costs, and incurred $17.4 million of expense in the nine months ended September 30, 2016. The programs are expected to cost $27.5 million, result in the reduction of approximately 250 team members and be completed in 2017. During the second quarter of 2016, the Company established a restructuring program in Corporate to consolidate redundant facilities, and incurred $7.4 million in the nine months ended September 30, 2016. The program is expected to cost $7.4 million, result in the reduction of approximately 500 team members and be completed in 2017. The following table provides information for all restructuring activities by segment including the amount of expense incurred during the nine months ended September 30, 2016, the cumulative amount of expenses incurred since inception of the programs through September 30, 2016, and the total amount expected to be incurred (in millions):
The following table provides information by type of restructuring activity with respect to the amount of expense incurred during the nine months ended September 30, 2016, the cumulative amount of expenses incurred since inception of the programs and the total amount expected to be incurred (in millions):
The following table provides a roll forward of the restructuring reserve by type of restructuring activity for the nine months ended September 30, 2016 (in millions):
Other During the first nine months of 2016, the Company recorded approximately $4 million and $11 million as a component of Cost of goods sold and Selling, general and administrative expenses (“SG&A”), respectively, for severance charges for structural cost reduction actions across all segments and corporate functions. |
LONG-TERM OBLIGATIONS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM OBLIGATIONS | LONG-TERM OBLIGATIONS 2014 Credit Agreement On August 13, 2014 the Company entered into a new credit agreement (the “2014 Credit Agreement”), with the lenders party thereto and Credit Suisse AG, as administrative agent and collateral agent. The 2014 Credit Agreement provides the Company with a senior secured revolving line of credit of up to $600 million that is available through August 13, 2019, a $230.0 million senior secured term loan and a €200.0 million senior secured term loan, which both mature on August 13, 2021. The 2014 Credit Agreement allows unlimited incremental commitments, which may be extended at the option of the existing or new lenders and can be in the form of revolving credit commitments, term loan commitments, or a combination of both as long as the Company satisfies a senior secured debt financial ratio contained in the 2014 Credit Agreement. The 2014 Credit Agreement requires the Company to comply with a number of covenants. The covenants limit, in certain circumstances, the Company’s ability to take a variety of actions, including but not limited to: incur indebtedness; create or maintain liens on its property or assets; make investments, loans and advances; repurchase shares of its Common Stock; engage in acquisitions, mergers, consolidations and asset sales; redeem debt; and pay dividends and distributions. On May 29, 2015, the Company entered into an Incremental Assumption Agreement and Amendment No. 1 to the 2014 Credit Agreement which lowered the interest rate on the Company’s €200.0 million Euro denominated term loan from Euro Interbank Offered Rate (“EURIBOR”) plus 3.25% with a 0.75% EURIBOR floor to EURIBOR plus 2.75% with a 0.75% EURIBOR floor. On September 30, 2016, the Company entered into an Amendment No. 2 (the “Amendment”) to the 2014 Credit Agreement, with the lenders party thereto and Credit Suisse AG, as administrative agent and collateral agent. The Amendment, among other things, waives the requirement that the Company and its restricted subsidiaries receive at least 75% of the consideration from the SAPA in the form of cash and cash equivalents. The Amendment also provides the Company with additional flexibility to not use the net cash proceeds from the SAPA to prepay the term loans, although it does require the Company to use $300 million of the net cash proceeds received from the SAPA, within 60 days of receipt thereof, to reduce its outstanding senior indebtedness. During the three months ended September 30, 2016, the Company incurred approximately $0.3 million of costs related to the Amendment (see Note A - “Stock and Asset Purchase Agreement”). If the Company’s borrowings under its revolving line of credit are greater than 30% of the total revolving credit commitments, the 2014 Credit Agreement requires the Company to comply with certain financial tests, as defined in the 2014 Credit Agreement. If applicable, the minimum required levels of the interest coverage ratio would be 2.5 to 1.0 and the maximum permitted levels of the senior secured leverage ratio would be 2.75 to 1.0. The 2014 Credit Agreement contains customary default provisions and has various non-financial covenants, both requiring the Company to refrain from taking certain future actions (as described above) and requiring the Company to take certain actions, such as keeping its corporate existence in good standing, maintaining insurance, and providing its bank lending group with financial information on a timely basis. As of September 30, 2016 and December 31, 2015, the Company had $443.7 million and $439.2 million, respectively, in U.S. dollar and Euro denominated term loans outstanding under its 2014 Credit Agreement. The weighted average interest rate on the term loans at September 30, 2016 and December 31, 2015 was 3.54% and 3.50%, respectively. The Company had $70.0 million in U.S. dollar denominated revolving credit amounts outstanding as of September 30, 2016. The Company had no outstanding U.S. dollar and Euro denominated revolving credit amounts at December 31, 2015. The weighted average interest rate on the revolving credit amounts at September 30, 2016 was 2.63%. The 2014 Credit Agreement incorporates facilities for issuance of letters of credit up to $400 million. Letters of credit issued under the 2014 Credit Agreement letter of credit facility decrease availability under the $600 million revolving line of credit. As of September 30, 2016 and December 31, 2015, the Company had no letters of credit issued under the 2014 Credit Agreement. The 2014 Credit Agreement also permits the Company to have additional letter of credit facilities up to $300 million, and letters of credit issued under such additional facilities do not decrease availability under the revolving line of credit. The Company had letters of credit issued under the additional letter of credit facilities of the 2014 Credit Agreement that totaled $35.1 million and $21.2 million as of September 30, 2016 and December 31, 2015, respectively. The Company also has bilateral arrangements to issue letters of credit with various other financial institutions. These additional letters of credit do not reduce the Company’s availability under the 2014 Credit Agreement. The Company had letters of credit issued under these additional arrangements of $170.7 million ($146.3 million related to discontinued operations) and $189.7 million ($153.6 million related to discontinued operations) as of September 30, 2016 and December 31, 2015, respectively. In total, as of September 30, 2016 and December 31, 2015, the Company had letters of credit outstanding of $205.8 million ($146.3 million related to discontinued operations) and $210.9 million ($153.6 million related to discontinued operations), respectively. The letters of credit generally serve as collateral for certain liabilities included in the Condensed Consolidated Balance Sheet. Certain letters of credit serve as collateral guaranteeing the Company’s performance under contracts. The Company and certain of its subsidiaries agreed to take certain actions to secure borrowings under the 2014 Credit Agreement. As a result, the Company and certain of its subsidiaries entered into a Guarantee and Collateral Agreement with Credit Suisse, as collateral agent for the lenders, granting security to the lenders for amounts borrowed under the 2014 Credit Agreement. The Company is required to (a) pledge as collateral the capital stock of the Company’s material domestic subsidiaries and 65% of the capital stock of certain of the Company’s material foreign subsidiaries, and (b) provide a first priority security interest in, and mortgages on, substantially all of the Company’s domestic assets. 6-1/2% Senior Notes On March 27, 2012, the Company sold and issued $300 million aggregate principal amount of Senior Notes Due 2020 (“6-1/2% Notes”) at par. The proceeds from these notes were used for general corporate purposes. The 6-1/2% Notes are redeemable by the Company beginning in April 2016 at an initial redemption price of 103.25% of principal amount. The 6-1/2% Notes are jointly and severally guaranteed by certain of the Company’s domestic subsidiaries (see Note Q – “Consolidating Financial Statements”). On September 30, 2016, the Company obtained the requisite non-revocable consents required to grant certain waivers from the asset sale covenants in the indenture governing the 6-1/2% Notes. The waiver agreements waive the requirement that the Company receive at least 75% of the consideration from the SAPA in the form of cash and cash equivalents. The terms of the waiver agreements will not become operative unless and until (1) all of the remaining conditions to the consent solicitation have been satisfied or waived, including but not limited to consummation of the SAPA and (2) the consent fee shall have been paid to consenting holders. In connection with the receipt and effectiveness of the consents, the Company will owe a total of $1.1 million upon closing of the SAPA, of which $0.4 million has been incurred as of September 30, 2016 (see Note A - “Stock and Asset Purchase Agreement”). 6% Senior Notes On November 26, 2012, the Company sold and issued $850 million aggregate principal amount of Senior Notes due 2021 (“6% Notes”) at par. The proceeds from this offering plus other cash was used to redeem all $800 million principal amount of the outstanding 8% Senior Subordinated Notes. The 6% Notes are redeemable by the Company beginning in November 2016 at an initial redemption price of 103.0% of principal amount. The 6% Notes are jointly and severally guaranteed by certain of the Company’s domestic subsidiaries (see Note Q – “Consolidating Financial Statements”). On September 30, 2016, the Company obtained the requisite non-revocable consents required to grant certain waivers from the asset sale covenants in the indenture governing the 6% Notes. The waiver agreements waive the requirement that the Company receive at least 75% of the consideration from the SAPA in the form of cash and cash equivalents. The terms of the waiver agreements will not become operative unless and until (1) all of the remaining conditions to the consent solicitation have been satisfied or waived, including but not limited to consummation of the SAPA and (2) the consent fee shall have been paid to consenting holders. In connection with the receipt and effectiveness of the consents, the Company will owe a total of $3.1 million upon closing of the SAPA, of which $1.1 million has been incurred as of September 30, 2016. (see Note A - “Stock and Asset Purchase Agreement”). 4% Convertible Senior Subordinated Notes On June 3, 2009, the Company sold and issued $172.5 million aggregate principal amount of 4% Convertible Notes. At issuance, the Company was required to separately account for the liability and equity components of the 4% Convertible Notes in a manner that reflected the Company’s nonconvertible debt borrowing rate at the date of issuance for interest cost to be recognized in subsequent periods. The Company allocated $54.3 million of the $172.5 million principal amount of the 4% Convertible Notes to the equity component, which represented a discount to the debt and was amortized into interest expense using the effective interest method through settlement. The Company recorded a related deferred tax liability of $19.4 million on the equity component. During 2012 the Company purchased approximately 25% of the outstanding 4% Convertible Notes. The balance of the 4% Convertible Notes was $128.8 million at settlement on June 1, 2015. The Company recognized interest expense of $5.7 million on the 4% Convertible Notes for the nine months ended September 30, 2015. Interest expense on the 4% Convertible Notes throughout its term included 4% annually of cash interest on the maturity balance of $128.8 million plus non-cash interest expense accreted to the debt balance as described. On June 1, 2015 the Company paid cash of $131.1 million (including accrued interest of $2.3 million) and issued 3.4 million shares of its $0.01 par value common stock to settle the 4% Convertible Notes. 2015 Securitization Facility On May 28, 2015, the Company, through certain of its subsidiaries, entered into a Loan and Security Agreement (the “Securitization Facility”) with lenders party thereto. The borrower under the Securitization Facility was a bankruptcy remote subsidiary of the Company (the “Borrower”). On May 31, 2016, the Company terminated the Securitization Facility, and repaid all outstanding loans because it was not providing the Company with the flexibility needed for its portfolio of assets. As a result of terminating the Securitization Facility, during the nine months ended September 30, 2016 the Company recorded a loss on early extinguishment of debt of $0.4 million to write-off deferred debt costs. Under the Securitization Facility, the Borrower received loans from time to time from conduit lenders thereunder, which were secured by and payable from collateral of the Borrower (primarily equipment loans and leases to Terex customers originated by TFS and transferred to the Borrower). The facility limit for such loans was $350 million and contained customary representations, warranties and covenants. At December 31, 2015, the Company had $206.5 million in loans outstanding under the Securitization Facility. The weighted average interest rate on the Securitization Facility at December 31, 2015 was 1.46%. Interest expense on loans outstanding under this facility was recorded to Cost of goods sold in the Condensed Consolidated Statement of Comprehensive Income. The Company was party to certain derivative interest rate swap agreements entered into to hedge its exposure to variable interest rates related to the Securitization Facility. The effective interest rate on the Securitization Facility when combined with the interest rate swap agreements was 2.13% at December 31, 2015. For further information on the interest rate swap agreements see Note K – “Derivative Financial Instruments.” Commitment Letter On May 16, 2016, as a result of terminating the BCA, the Company and Konecranes terminated the commitment letter they entered into on August 10, 2015 with Credit Suisse Securities (USA) LLC (“CS Securities”) and Credit Suisse AG (“CS” and, together with CS Securities and their respective affiliates, “Credit Suisse”) and the commitments thereunder by Credit Suisse, the other commitment parties and the lenders in respect of the senior secured credit facilities (the “Commitment Letter”). As the Company and Konecranes terminated the BCA, the parties no longer needed the use of funds that would have been supplied by the senior secured credit facilities pursuant to the Commitment Letter. In connection with the Commitment Letter, the Company incurred fees of $7.2 million on the unused commitment for the nine months ended September 30, 2016 which are included with transaction costs directly related to the BCA and are recorded in Other income (expense) - net in the Condensed Consolidated Statement of Comprehensive Income (Loss). Fair Value of Debt Based on indicative price quotations from financial institutions multiplied by the amount recorded on the Company’s Condensed Consolidated Balance Sheet (“Book Value”), the Company estimates the fair values (“FV”) of its debt set forth below as of September 30, 2016, as follows (in millions, except for quotes):
The fair value of debt reported in the table above is based on price quotations on the debt instrument in an active market and therefore categorized under Level 1 of the ASC 820 hierarchy. See Note B – “Basis of Presentation,” for an explanation of the ASC 820 hierarchy. The Company believes that the carrying value of its other borrowings, including amounts outstanding for the revolving credit line under the 2014 Credit Agreement approximate fair market value based on maturities for debt of similar terms. The fair value of these other borrowings are categorized under Level 2 of the ASC 820 hierarchy. |
RETIREMENT PLANS AND OTHER BENEFITS |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT PLANS AND OTHER BENEFITS | RETIREMENT PLANS AND OTHER BENEFITS The Company maintains defined benefit plans in the United States, France, Germany, India, Switzerland and the United Kingdom for some of its subsidiaries, including a nonqualified Supplemental Executive Retirement Plan (“SERP”) in the United States. In Austria and Italy there are mandatory termination indemnity plans providing a benefit that is payable upon termination of employment in substantially all cases of termination. The Company also has several programs that provide postemployment benefits, including health and life insurance benefits, to certain former salaried and hourly employees. Information regarding the Company’s plans, including the SERP, was as follows (in millions):
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LITIGATION AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||
LITIGATION AND CONTINGENCIES | LITIGATION AND CONTINGENCIES General The Company is involved in various legal proceedings, including product liability, general liability, workers’ compensation liability, employment, commercial and intellectual property litigation, which have arisen in the normal course of operations. The Company is insured for product liability, general liability, workers’ compensation, employer’s liability, property damage and other insurable risk required by law or contract, with retained liability or deductibles. The Company records and maintains an estimated liability in the amount of management’s estimate of the Company’s aggregate exposure for such retained liabilities and deductibles. For such retained liabilities and deductibles, the Company determines its exposure based on probable loss estimations, which requires such losses to be both probable and the amount or range of probable loss to be estimable. The Company believes it has made appropriate and adequate reserves and accruals for its current contingencies and the likelihood of a material loss beyond amounts accrued is remote. The Company believes the outcome of such matters, individually and in aggregate, will not have a material adverse effect on its financial statements as a whole. However, outcomes of lawsuits cannot be predicted and, if determined adversely, could ultimately result in the Company incurring significant liabilities which could have a material adverse effect on its results of operations. Securities and Stockholder Derivative Lawsuits The Company has received complaints seeking certification of class action lawsuits as follows:
These lawsuits generally cover the period from February 2008 to February 2009 and allege, among other things, that certain of the Company’s SEC filings and other public statements contained false and misleading statements which resulted in damages to the Company, the plaintiffs and the members of the purported class when they purchased the Company’s securities and in the stockholder derivative complaint, that there were breaches of fiduciary duties. The stockholder derivative complaint also alleges waste of corporate assets relating to the repurchase of the Company’s shares in the market and unjust enrichment as a result of securities sales by certain officers and directors. The complaints seek, among other things, unspecified compensatory damages, costs and expenses. As a result, the Company is unable to estimate a possible loss or a range of losses for these lawsuits. The stockholder derivative complaint also seeks amendments to the Company’s corporate governance procedures in addition to unspecified compensatory damages from the individual defendants in its favor. The Company believes that the allegations in the suits are without merit, and Terex, its directors and the named executives will continue to vigorously defend against them. The Company believes that it has acted, and continues to act, in compliance with federal securities laws and Delaware law with respect to these matters. Accordingly, the Company has filed motions to dismiss the securities lawsuit. The plaintiff in the stockholder derivative lawsuit has agreed with the Company to put this lawsuit on hold pending the outcome of the motion to dismiss in connection with the securities lawsuit. Other The Company is involved in various other legal proceedings which have arisen in the normal course of its operations. The Company has recorded provisions for estimated losses in circumstances where a loss is probable and the amount or range of possible amounts of the loss is estimable. See Note E - “Discontinued Operations and Assets and Liabilities Held for Sale” for further information regarding proceedings involving certain former shareholders of Demag Cranes AG. Credit Guarantees Customers of the Company from time to time may fund the acquisition of the Company’s equipment through third-party finance companies. In certain instances, the Company may provide a credit guarantee to the finance company, by which the Company agrees to make payments to the finance company should the customer default. Maximum liability of the Company is generally limited to its customer’s remaining payments due to the finance company at time of default. In the event of customer default, the Company or the finance company is generally able to recover and dispose of equipment at a minimum loss, if any, to the Company. As of September 30, 2016 and December 31, 2015, the Company’s maximum exposure to such credit guarantees was $40.5 million and $39.8 million, respectively, including total guarantees issued by a German subsidiary, part of the Cranes segment, of $17.9 million and $19.0 million, respectively (credit guarantees as of September 30, 2016 and December 31, 2015 include $1.8 million and $1.7 million of guarantees related to discontinued operations). Terms of these guarantees coincide with the financing arranged by the customer and generally do not exceed five years. Given the Company’s position as original equipment manufacturer and its knowledge of end markets, the Company, when called upon to fulfill a guarantee, generally has been able to liquidate the financed equipment at a minimal loss, if any, to the Company. There can be no assurance historical credit default experience will be indicative of future results. The Company’s ability to recover losses experienced from its guarantees may be affected by economic conditions in effect at time of loss. Residual Value and Buyback Guarantees The Company issues residual value guarantees under sales-type leases. A residual value guarantee involves a guarantee that a piece of equipment will have a minimum fair market value at a future date. Maximum exposure for residual value guarantees issued by the Company totaled $5.4 million and $3.7 million as of September 30, 2016 and December 31, 2015, respectively. The Company is generally able to mitigate some risk associated with these guarantees because the maturity of guarantees is staggered, limiting the amount of used equipment entering the marketplace at any one time. The Company from time to time guarantees it will buy equipment from its customers in the future at a stated price if certain conditions are met by the customer. Such guarantees are referred to as buyback guarantees. These conditions generally pertain to functionality and state of repair of the machine. As of September 30, 2016 and December 31, 2015, the Company’s maximum exposure pursuant to buyback guarantees was $5.1 million and $6.9 million, respectively ($4.8 million and $6.6 million related to discontinued operations, respectively). The Company is generally able to mitigate some risk of these guarantees because maturity of guarantees is staggered, limiting the amount of used equipment entering the marketplace at any one time and through leveraging its access to used equipment markets provided by the Company’s original equipment manufacturer status. The Company has recorded an aggregate liability within Other current liabilities and Other non-current liabilities in the Condensed Consolidated Balance Sheet of approximately $4 million and $3 million as of September 30, 2016 and December 31, 2015, respectively, for estimated fair value of all guarantees provided. There can be no assurance the Company’s historical experience in used equipment markets will be indicative of future results. The Company’s ability to recover losses experienced from its guarantees may be affected by economic conditions in used equipment markets at the time of loss. |
STOCKHOLDERS' EQUITY |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Total non-stockholder changes in equity (comprehensive income) include all changes in equity during a period except those resulting from investments by, and distributions to, stockholders. The specific components include: net income, deferred gains and losses resulting from foreign currency translation, pension liability adjustments, equity security adjustments and deferred gains and losses resulting from derivative hedging transactions. Total non-stockholder changes in equity were as follows (in millions):
Changes in Accumulated Other Comprehensive Income The table below presents changes in AOCI by component for the three and nine months ended September 30, 2016 and 2015. All amounts are net of tax (in millions).
Stock-Based Compensation During the nine months ended September 30, 2016, the Company awarded 2.0 million shares of restricted stock to its employees with a weighted average grant date fair value of $23.89 per share. Approximately 80% of these restricted stock awards vest ratably over a three year period and approximately 20% cliff vest at the end of a three year period and are based on performance targets containing a market condition. The Company used the Monte Carlo method to determine grant date fair value of $29.24 per share for the awards with a market condition granted on March 3, 2016. The Monte Carlo method is a statistical simulation technique used to provide the grant date fair value of an award. The following table presents the weighted-average assumptions used in the valuation:
Share Repurchases and Dividends In February 2015, the Company announced authorization by its Board of Directors for the repurchase of up to $200 million of the Company’s outstanding shares of common stock. During the nine months ended September 30, 2016 the Company repurchased approximately 3.4 million shares for approximately $79.6 million under this program. In each of the first three quarters of 2016, the Company’s Board of Directors declared a dividend of $0.07 per share, which was paid to its shareholders. |
CONSOLIDATING FINANCIAL STATEMENTS |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING FINANCIAL STATEMENTS | CONSOLIDATING FINANCIAL STATEMENTS During 2012, the Company sold and issued the 6% Notes and the 6-1/2% Notes (collectively the “Notes”) (see Note M – “Long-Term Obligations”). The Notes are jointly and severally guaranteed by the following wholly-owned subsidiaries of the Company (the “Wholly-owned Guarantors”): CMI Terex Corporation, Fantuzzi Noell USA, Inc., Genie Holdings, Inc., Genie Industries, Inc., Genie International, Inc., Powerscreen Holdings USA Inc., Powerscreen International LLC, Powerscreen North America Inc., Powerscreen USA, LLC, Terex Advance Mixer, Inc., Terex Aerials, Inc., Terex Financial Services, Inc., Terex South Dakota, Inc., Terex USA, LLC, Terex Utilities, Inc. and Terex Washington, Inc. Wholly-owned Guarantors are 100% owned by the Company. All of the guarantees are full and unconditional. The guarantees of the Wholly-owned Guarantors are subject to release in limited circumstances only upon the occurrence of certain customary conditions. No subsidiaries of the Company except the Wholly-owned Guarantors have provided a guarantee of the Notes. The following summarized condensed consolidating financial information for the Company segregates the financial information of Terex Corporation, the Wholly-owned Guarantors and the non-guarantor subsidiaries. The results and financial position of businesses acquired are included from the dates of their respective acquisitions. Terex Corporation consists of parent company operations. Subsidiaries of the parent company are reported on the equity basis. Wholly-owned Guarantors combine the operations of the Wholly-owned Guarantor subsidiaries. Subsidiaries of Wholly-owned Guarantors that are not themselves guarantors are reported on the equity basis. Non-guarantor subsidiaries combine the operations of subsidiaries which have not provided a guarantee of the Notes. Subsidiaries of non-guarantor subsidiaries that are guarantors are reported on the equity basis. Debt and goodwill allocated to subsidiaries are presented on a “push-down” accounting basis. TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) THREE MONTHS ENDED SEPTEMBER 30, 2016 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) NINE MONTHS ENDED SEPTEMBER 30, 2016 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) THREE MONTHS ENDED SEPTEMBER 30, 2015 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) NINE MONTHS ENDED SEPTEMBER 30, 2015 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET SEPTEMBER 30, 2016 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2016 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2015 (in millions)
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BASIS OF PRESENTATION (Policies) |
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Accrued Warranties | Accrued Warranties. The Company records accruals for potential warranty claims based on its claims experience. The Company’s products are typically sold with a standard warranty covering defects that arise during a fixed period. Each business provides a warranty specific to the products it offers. The specific warranty offered by a business is a function of customer expectations and competitive forces. Warranty length is generally a fixed period of time, a fixed number of operating hours, or both. A liability for estimated warranty claims is accrued at the time of sale. The non-current portion of the warranty accrual is included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheet. The liability is established using historical warranty claim experience for each product sold. Historical claim experience may be adjusted for known design improvements or for the impact of unusual product quality issues. Warranty reserves are reviewed quarterly to ensure critical assumptions are updated for known events that may affect the potential warranty liability. The following table summarizes the changes in the product warranty liability (in millions):
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Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements. Assets and liabilities measured at fair value on a recurring basis under the provisions of Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement and Disclosure” (“ASC 820”) include interest rate swaps and foreign currency forward contracts discussed in Note K – “Derivative Financial Instruments.” These contracts are valued using a market approach, which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. ASC 820 establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Determining which category an asset or liability falls within this hierarchy requires judgment. The Company evaluates its hierarchy disclosures each quarter. |
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Schedule of Product Warranty Liability [Table Text Block] | The following table summarizes the changes in the product warranty liability (in millions):
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BUSINESS SEGMENT INFORMATION (Tables) |
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of business segment information | Business segment information is presented below (in millions):
|
DISCONTINUED OPERATIONS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of discontinued operations presented in the Consolidated Financial Statements | The following table provides supplemental cash flow information related to discontinued operations (in millions):
The following table provides the amounts of assets and liabilities held for sale in the Condensed Consolidated Balance Sheet (in millions):
The following table provides amounts of cash and cash equivalents presented in the Consolidated Statement of Cash Flows (in millions):
The following amounts related to the discontinued operations were derived from historical financial information and have been segregated from continuing operations and reported as discontinued operations in the Condensed Consolidated Statement of Comprehensive Income (in millions):
|
EARNINGS PER SHARE (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share |
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Schedule of noncontrolling interest attributable to common stockholders | The following table provides information to reconcile amounts reported on the Condensed Consolidated Statement of Comprehensive Income (Loss) to amounts used to calculate earnings per share attributable to Terex Corporation Common Stockholders (in millions):
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FINANCE RECEIVABLES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Finance receivables, net consisted of the following (in millions):
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Allowance for Credit Losses on Financing Receivables | The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in millions):
The following table presents an analysis of the allowance for credit losses:
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Impaired Financing Receivables | The following tables present individually impaired finance receivables (in millions):
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Past Due Financing Receivables | The following table presents analysis of aging of recorded investment in finance receivables (in millions):
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Financing Receivable Credit Quality Indicators | Finance receivables by risk rating (in millions):
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INVENTORIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories | Inventories consist of the following (in millions):
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property, plant and equipment | Property, plant and equipment – net consist of the following (in millions):
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GOODWILL AND INTANGIBLE ASSETS, NET (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in goodwill by business segment | An analysis of changes in the Company’s goodwill by business segment is as follows (in millions):
(1) Includes a $17.9 million reclassification of goodwill from Cranes to discontinued operations, and a $0.9 million reclassification of goodwill from Cranes to AWP as a result of segment realignments. See Note C - “Business Segment Information”. (2) During the second quarter of 2016 the Company wrote off $132.8 million of fully impaired goodwill associated with its former Construction segment. |
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Schedule of intangible assets by class | Intangible assets, net were comprised of the following as of September 30, 2016 and December 31, 2015 (in millions):
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Finite-lived Intangible Assets Amortization Expense [Table Text Block] |
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Schedule of intangible assets amortization expense | Estimated aggregate intangible asset amortization expense (in millions) for each of the five years below is:
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of derivative instruments designated as hedging instruments that are reported in the Consolidated Balance Sheet | The following table provides the location and fair value amounts of derivative instruments designated as hedging instruments that are reported in the Condensed Consolidated Balance Sheet (in millions):
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Schedule of fair value of derivative instruments not designated as hedging instruments that are reported in the Consolidated Statement of Comprehensive Income and Balance Sheet | The following table provides the location and fair value amounts of derivative instruments not designated as hedging instruments that are reported in the Condensed Consolidated Balance Sheet (in millions):
The following table provides the effect of derivative instruments that are not designated as hedges in the Condensed Consolidated Statement of Comprehensive Income (in millions):
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Schedule of derivative instruments that are designated as hedges in the Consolidated Statement of Comprehensive Income | The following tables provide the effect of derivative instruments that are designated as hedges in the Condensed Consolidated Statement of Comprehensive Income and AOCI (in millions):
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Schedule of accumulated other comprehensive income (loss) | Unrealized net gains (losses), net of tax, included in AOCI are as follows (in millions):
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RESTRUCTURING AND OTHER CHARGES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information for all restructuring activities by segment | The following table provides information for all restructuring activities by segment including the amount of expense incurred during the nine months ended September 30, 2016, the cumulative amount of expenses incurred since inception of the programs through September 30, 2016, and the total amount expected to be incurred (in millions):
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Information by type of restructuring activity | The following table provides information by type of restructuring activity with respect to the amount of expense incurred during the nine months ended September 30, 2016, the cumulative amount of expenses incurred since inception of the programs and the total amount expected to be incurred (in millions):
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Roll forward of the restructuring reserve by type of restructuring activity | The following table provides a roll forward of the restructuring reserve by type of restructuring activity for the nine months ended September 30, 2016 (in millions):
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LONG-TERM OBLIGATIONS LONG TERM OBLIGATIONS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | Based on indicative price quotations from financial institutions multiplied by the amount recorded on the Company’s Condensed Consolidated Balance Sheet (“Book Value”), the Company estimates the fair values (“FV”) of its debt set forth below as of September 30, 2016, as follows (in millions, except for quotes):
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RETIREMENT PLANS AND OTHER BENEFITS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of net periodic cost | Information regarding the Company’s plans, including the SERP, was as follows (in millions):
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STOCKHOLDERS' EQUITY (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | Total non-stockholder changes in equity were as follows (in millions):
Changes in Accumulated Other Comprehensive Income The table below presents changes in AOCI by component for the three and nine months ended September 30, 2016 and 2015. All amounts are net of tax (in millions).
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Schedule of weighted-average assumptions used in the valuations | The following table presents the weighted-average assumptions used in the valuation:
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CONSOLIDATING FINANCIAL STATEMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) THREE MONTHS ENDED SEPTEMBER 30, 2016 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) NINE MONTHS ENDED SEPTEMBER 30, 2016 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) THREE MONTHS ENDED SEPTEMBER 30, 2015 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) NINE MONTHS ENDED SEPTEMBER 30, 2015 (in millions)
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Condensed Consolidating Balance Sheet | TEREX CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET SEPTEMBER 30, 2016 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 (in millions)
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Condensed Consolidating Statement of Cash Flows | TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2016 (in millions)
TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2015 (in millions)
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STOCK AND ASSET PURCHASE AGREEMENT (Details) € in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
May 16, 2016
EUR (€)
shares
|
May 16, 2016
USD ($)
shares
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2017
director
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
|
Business Acquisition [Line Items] | |||||||
Disposal Group, Including Discontinued Operations, Transaction Costs | $ 1.3 | $ 2.5 | |||||
Scenario, Forecast | |||||||
Business Acquisition [Line Items] | |||||||
Number of Directors Nominated | director | 2 | ||||||
Merger | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Acquisition Related Costs | $ 0.2 | $ 8.6 | $ 12.8 | $ 9.5 | |||
Materials Handling and Port Solutions Sale | |||||||
Business Acquisition [Line Items] | |||||||
Consideration received | $ 1,500.0 | ||||||
Cash received as consideration | € 200 | $ 595.0 | |||||
Equity interest received (in shares) | shares | 19,600,000.0 | 19,600,000.0 | |||||
Konecranes Plc | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage | 25.00% | 25.00% |
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Cash and Cash Equivalents | ||
Cash and cash equivalents, not immediately available for use | $ 9.8 | $ 18.0 |
Changes in consolidated current and non-current product warranty liability | ||
Balance at beginning of period | 53.0 | |
Accruals for warranties issued during the period | 55.5 | |
Changes in estimates | (3.8) | |
Settlements during the period | (41.5) | |
Foreign exchange effect/other | (1.0) | |
Balance at end of period | $ 62.2 |
BUSINESS SEGMENT INFORMATION (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
segments
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Segment Reporting Information | |||||
Number of Reportable Segments | segments | 3 | ||||
Net sales | $ 1,056.4 | $ 1,255.4 | $ 3,468.4 | $ 3,854.1 | |
Income (Loss) from Operations | 39.6 | 92.1 | 124.3 | 266.5 | |
Total assets | 5,569.3 | 5,569.3 | $ 5,616.0 | ||
Aerial Work Platforms | |||||
Segment Reporting Information | |||||
Net sales | 484.4 | 580.9 | 1,598.8 | 1,786.7 | |
Income (Loss) from Operations | 48.6 | 78.9 | 159.2 | 228.6 | |
Total assets | 1,725.2 | 1,725.2 | 1,701.2 | ||
Cranes | |||||
Segment Reporting Information | |||||
Net sales | 282.8 | 379.3 | 947.5 | 1,160.3 | |
Income (Loss) from Operations | (12.1) | 12.1 | (41.5) | 35.8 | |
Total assets | 1,889.5 | 1,889.5 | 1,822.3 | ||
Materials Processing | |||||
Segment Reporting Information | |||||
Net sales | 228.2 | 238.7 | 708.2 | 698.6 | |
Income (Loss) from Operations | 19.5 | 17.6 | 63.9 | 54.8 | |
Total assets | 979.1 | 979.1 | 1,073.4 | ||
Corporate and Other / Eliminations | |||||
Segment Reporting Information | |||||
Net sales | 61.0 | 56.5 | 213.9 | 208.5 | |
Income (Loss) from Operations | (16.4) | $ (16.5) | (57.3) | $ (52.7) | |
Total assets | (1,062.7) | (1,062.7) | (891.0) | ||
Discontinued Operations, Held-for-sale | Material Handling and Port Solutions and Construction Sale | Construction | |||||
Segment Reporting Information | |||||
Total assets | $ 2,038.2 | $ 2,038.2 | $ 1,910.1 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Recognized income tax expense | $ 19.3 | $ (25.6) | $ 82.5 | $ (64.5) |
Income (loss) from continuing operations before income taxes | $ 13.9 | $ 55.9 | $ 38.3 | $ 169.0 |
Effective Income Tax Rate, Continuing Operations | (138.80%) | 45.80% | (215.40%) | 38.20% |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Additional Information (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 16, 2016
USD ($)
shares
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2017
director
|
|
Materials Handling and Port Solutions Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration receivable | $ 1,500.0 | |||
Impairment of MHPS disposal group | $ (55.6) | $ 55.6 | ||
After tax impairment charge | $ (55.6) | $ 55.6 | ||
Equity interest receivable (in shares) | shares | 19,600,000.0 | |||
Stock price effect on impairment charge, lower percentage | 10.00% | |||
Result of stock price effect on impairment charge, lower percentage, value | $ (55.6) | |||
Exchange rate effect on impairment charge, lower percentage | 5.00% | |||
Result of exchange rate effect on impairment charge, lower percentage, value | $ (55.6) | |||
Konecranes Plc | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 25.00% | |||
Scenario, Forecast | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of Directors Nominated | director | 2 |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Income (Loss) From Discontinued Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations before income taxes | $ 0.0 | $ (1.3) | $ 4.6 | $ 1.9 |
Net loss (income) attributable to noncontrolling interest | (0.6) | (1.3) | 0.1 | (3.1) |
Income (loss) from discontinued operations – net of tax | 63.5 | 14.5 | (33.3) | 23.3 |
Materials Handling and Port Solutions Sale | Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 348.8 | 385.9 | 983.5 | 1,111.3 |
Cost of sales | (261.2) | (301.7) | (774.1) | (869.8) |
Selling, general and administrative expenses | (63.7) | (64.4) | (222.2) | (203.6) |
Reversal of impairment of MHPS disposal group | 55.6 | 0.0 | 0.0 | 0.0 |
Net interest (expense) | (1.4) | (0.2) | (2.0) | (1.1) |
Other income (expense) | (2.3) | 1.4 | (0.1) | 0.5 |
Income (loss) from discontinued operations before income taxes | 75.8 | 21.0 | (14.9) | 37.3 |
(Provision for) benefit from income taxes | (11.7) | (5.2) | (18.5) | (10.9) |
Income (loss) from discontinued operations – net of tax attributable to Terex Corporation | 64.1 | 15.8 | (33.4) | 26.4 |
Net loss (income) attributable to noncontrolling interest | (0.6) | (1.3) | 0.1 | (3.1) |
Income (loss) from discontinued operations – net of tax | $ 63.5 | $ 14.5 | $ (33.3) | $ 23.3 |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Construction (Details) - Construction Segment Sale - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 8.1 | |
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down, Net of Tax | 5.6 | |
Expected proceeds from sale | $ 60.0 | |
Cost of Sales | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 4.0 | |
Selling, General and Administrative Expenses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 4.1 |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Assets and Liabilities Held For Sale (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets | ||
Cash and cash equivalents - held for sale | $ 94.9 | $ 95.3 |
Current assets held for sale | 806.8 | 749.6 |
Non-current assets held for sale | 1,231.4 | 1,160.5 |
Liabilities | ||
Current liabilities held for sale | 497.0 | 446.0 |
Non-current liabilities held for sale | 315.0 | 298.5 |
Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Assets | ||
Cash and cash equivalents - held for sale | 94.9 | |
Trade receivables – net | 236.3 | |
Inventories | 441.2 | |
Prepaid and other current assets | 34.4 | |
Current assets held for sale | 806.8 | |
Property, plant and equipment – net | 324.6 | |
Goodwill | 606.9 | |
Intangible assets | 227.8 | |
Other assets | 72.1 | |
Non-current assets held for sale | 1,231.4 | |
Liabilities | ||
Accruals and other current liabilities | 323.0 | |
Current liabilities held for sale | 497.0 | |
Long-term debt, less current portion | 2.6 | |
Retirement plans and other non-current liabilities | 312.4 | |
Non-current liabilities held for sale | 315.0 | |
Material Handling & Port Solutions | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Assets | ||
Cash and cash equivalents - held for sale | 94.5 | 95.3 |
Trade receivables – net | 222.9 | 236.0 |
Inventories | 403.7 | 382.1 |
Prepaid and other current assets | 34.2 | 36.2 |
Current assets held for sale | 755.3 | 749.6 |
Property, plant and equipment – net | 308.9 | 303.9 |
Goodwill | 606.9 | 564.1 |
Intangible assets | 227.8 | 226.9 |
Other assets | 70.4 | 65.6 |
Non-current assets held for sale | 1,214.0 | 1,160.5 |
Liabilities | ||
Accruals and other current liabilities | 315.8 | 255.2 |
Current liabilities held for sale | 482.7 | 446.0 |
Long-term debt, less current portion | 2.6 | 0.1 |
Retirement plans and other non-current liabilities | 312.0 | 298.4 |
Non-current liabilities held for sale | 314.6 | 298.5 |
Construction | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Assets | ||
Cash and cash equivalents - held for sale | 0.4 | |
Trade receivables – net | 13.4 | |
Inventories | 37.5 | |
Prepaid and other current assets | 0.2 | |
Current assets held for sale | 51.5 | |
Property, plant and equipment – net | 15.7 | |
Goodwill | 0.0 | |
Intangible assets | 0.0 | |
Other assets | 1.7 | |
Non-current assets held for sale | 17.4 | |
Liabilities | ||
Accruals and other current liabilities | 7.2 | |
Current liabilities held for sale | 14.3 | |
Long-term debt, less current portion | 0.0 | |
Retirement plans and other non-current liabilities | 0.4 | |
Non-current liabilities held for sale | 0.4 | |
Notes Payable and Current Portion of Long-term Debt | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Liabilities | ||
Accounts payable, current | 21.9 | |
Notes Payable and Current Portion of Long-term Debt | Material Handling & Port Solutions | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Liabilities | ||
Accounts payable, current | 21.9 | 13.8 |
Notes Payable and Current Portion of Long-term Debt | Construction | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Liabilities | ||
Accounts payable, current | 0.0 | |
Trade Accounts Payable | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Liabilities | ||
Accounts payable, current | 152.1 | |
Trade Accounts Payable | Material Handling & Port Solutions | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Liabilities | ||
Accounts payable, current | 145.0 | $ 177.0 |
Trade Accounts Payable | Construction | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||
Liabilities | ||
Accounts payable, current | $ 7.1 |
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Cash Flows (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Cash and cash equivalents: | ||||||
Cash and cash equivalents - continuing operations | $ 248.8 | $ 248.8 | $ 371.2 | |||
Cash and cash equivalents - held for sale | 94.9 | 94.9 | 95.3 | |||
Total cash and cash equivalents: | 343.7 | $ 301.1 | 343.7 | $ 301.1 | 466.5 | $ 478.2 |
Non-cash operating items: | ||||||
Deferred Taxes | (101.1) | (17.4) | ||||
Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash Equivalents not immediately available for use | 10.4 | 10.4 | 9.8 | |||
Cash and cash equivalents: | ||||||
Cash and cash equivalents - held for sale | 94.9 | 94.9 | ||||
Non-cash operating items: | ||||||
Depreciation and amortization | 0.0 | 13.8 | 22.4 | 41.9 | ||
Impairment of MHPS disposal group | (55.6) | 0.0 | 0.0 | 0.0 | ||
Deferred Taxes | 4.5 | (0.5) | 8.8 | (0.3) | ||
Capital expenditures | 2.6 | $ 3.3 | 11.1 | $ 13.9 | ||
Material Handling & Port Solutions | Material Handling and Port Solutions and Construction Sale | Discontinued Operations, Held-for-sale | ||||||
Cash and cash equivalents: | ||||||
Cash and cash equivalents - held for sale | $ 94.5 | $ 94.5 | $ 95.3 |
DISCONTINUED OPERATIONS - Other (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Jun. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Discontinued operations in the Consolidated Statement of Comprehensive Income | |||||
Gain (loss) on disposition of discontinued operations | $ 0.0 | $ (1.3) | $ 4.6 | $ 1.9 | |
(Provision for) benefit from income taxes | 0.0 | 0.1 | (1.1) | (0.4) | |
Gain (loss) on disposition of discontinued operations – net of tax | 0.0 | $ (1.2) | $ 3.5 | 1.5 | |
Materials Handling and Port Solutions Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of MHPS disposal group | (55.6) | $ 55.6 | |||
After tax impairment charge | (55.6) | $ 55.6 | |||
Result of stock price effect on impairment charge, lower percentage, value | (55.6) | ||||
Result of exchange rate effect on impairment charge, lower percentage, value | $ (55.6) | ||||
Atlas Member | |||||
Discontinued operations in the Consolidated Statement of Comprehensive Income | |||||
Gain (loss) on disposition of discontinued operations – net of tax | 2.8 | ||||
Truck Business | |||||
Discontinued operations in the Consolidated Statement of Comprehensive Income | |||||
Gain (loss) on disposition of discontinued operations – net of tax | $ (1.3) |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Jun. 01, 2015 |
Jun. 03, 2009 |
|
Earnings per share | ||||||
Income (loss) from continuing operations attributable to Terex Corporation common stockholders | $ 33.3 | $ 30.3 | $ 120.9 | $ 104.6 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 63.5 | 14.5 | (33.3) | 23.3 | ||
Gain (loss) on disposition of discontinued operations – net of tax | 0.0 | (1.2) | 3.5 | 1.5 | ||
Net income (loss) attributable to Terex Corporation | $ 96.8 | $ 43.6 | $ 91.1 | $ 129.4 | ||
Basic shares: | ||||||
Weighted average shares outstanding (in shares) | 107.6 | 108.5 | 108.5 | 107.0 | ||
Earnings per share - basic: | ||||||
Income (loss) from continuing operations (in dollars per share) | $ 0.31 | $ 0.28 | $ 1.12 | $ 0.98 | ||
Income (loss) from discontinued operations - net of tax (in dollars per share) | 0.59 | 0.13 | (0.31) | 0.22 | ||
Gain (loss) on disposition of discontinued operations - net of tax (in dollars per share) | 0.00 | (0.01) | 0.03 | 0.01 | ||
Net income (loss) attributable to Terex Corporation (in dollars per share) | $ 0.90 | $ 0.40 | $ 0.84 | $ 1.21 | ||
Diluted shares: | ||||||
Weighted average shares outstanding (in shares) | 107.6 | 108.5 | 108.5 | 107.0 | ||
Effect of dilutive securities: | ||||||
Stock options, restricted stock awards and convertible notes [in shares] | 1.0 | 0.7 | 0.8 | 2.7 | ||
Diluted weighted average shares outstanding (in shares) | 108.6 | 109.2 | 109.3 | 109.7 | ||
Earnings per share - diluted: | ||||||
Income (loss) from continuing operations (in dollars per share) | $ 0.31 | $ 0.28 | $ 1.10 | $ 0.95 | ||
Income (loss) from discontinued operations - net of tax (in dollars per share) | 0.58 | 0.13 | (0.30) | 0.22 | ||
Gain (loss) on disposition of discontinued operations - net of tax (in dollars per share) | 0.00 | (0.01) | 0.03 | 0.01 | ||
Net income (loss) attributable to Terex Corporation (in dollars per share) | $ 0.89 | $ 0.40 | $ 0.83 | $ 1.18 | ||
Reconciliation of amounts attributable to common stockholders: | ||||||
Income (loss) from continuing operations [in dollars] | $ 33.2 | $ 30.3 | $ 120.8 | $ 104.5 | ||
Noncontrolling interest (income) loss attributed to continuing operations | 0.1 | 0.0 | 0.1 | 0.1 | ||
Income (loss) from continuing operations attributable to common stockholders [in dollars] | $ 33.3 | $ 30.3 | $ 120.9 | $ 104.6 | ||
Other details of antidilutive securities | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Shares, Issued | 3.4 | |||||
Incremental Common Shares Attributable to Contingently Issuable Shares | 1.9 | |||||
Convertible Subordinated Debt | ||||||
Other details of antidilutive securities | ||||||
Interest rate of debt securities (as a percent) | 4.00% | |||||
Stock Options | ||||||
Other details of antidilutive securities | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.1 | 0.1 | 0.1 | |||
Restricted Stock | ||||||
Other details of antidilutive securities | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.5 | 0.8 | 0.7 | 0.8 |
FINANCE RECEIVABLES - Finance Receivables, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Significant Sales | $ 81.1 | $ 13.1 | $ 191.3 | $ 34.5 | ||||
Loans Receivables Held-for-sale, Net, Not Part of Disposal Group | 10.9 | 10.9 | ||||||
Total finance receivables, gross | 294.2 | 294.2 | $ 353.3 | |||||
Allowance for credit losses | (7.5) | (5.6) | (7.5) | (5.6) | $ (7.4) | (7.3) | $ (4.9) | $ (3.0) |
Total finance receivables, net | 286.7 | 286.7 | 346.0 | |||||
Commercial Portfolio Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total finance receivables, gross | 274.3 | 274.3 | 331.4 | |||||
Allowance for credit losses | (6.4) | (4.4) | (6.4) | (4.4) | (6.9) | (6.5) | (3.6) | (1.9) |
Sales-type Leases Portfolio Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Total finance receivables, gross | 19.9 | 19.9 | 21.9 | |||||
Allowance for credit losses | $ (1.1) | $ (1.2) | $ (1.1) | $ (1.2) | $ (0.5) | $ (0.8) | $ (1.3) | $ (1.1) |
FINANCE RECEIVABLES - Allowance for Credit Losses on Finance Receivables (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | $ 7.4 | $ 4.9 | $ 7.3 | $ 3.0 | ||
Provision for credit losses | 0.1 | 0.7 | 0.2 | 2.6 | ||
Charge offs | 0.0 | 0.0 | 0.0 | 0.0 | ||
Recoveries | 0.0 | 0.0 | 0.0 | 0.0 | ||
Ending balance | 7.5 | 5.6 | 7.5 | 5.6 | ||
Allowance for credit losses, Individually evaluated for impairment | $ 2.1 | $ 2.4 | ||||
Allowance for credit losses, Collectively evaluated for impairment | 5.4 | 4.9 | ||||
Total allowance for credit losses | 7.4 | 4.9 | 7.3 | 3.0 | 7.5 | 7.3 |
Finance receivable, Individually evaluated for impairment | 2.1 | 3.7 | ||||
Finance receivable, Collectively evaluated for impairment | 292.1 | 349.6 | ||||
Total finance receivables | 294.2 | 353.3 | ||||
Commercial Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 6.9 | 3.6 | 6.5 | 1.9 | ||
Provision for credit losses | (0.5) | 0.8 | (0.1) | 2.5 | ||
Charge offs | 0.0 | 0.0 | 0.0 | 0.0 | ||
Recoveries | 0.0 | 0.0 | 0.0 | 0.0 | ||
Ending balance | 6.4 | 4.4 | 6.4 | 4.4 | ||
Allowance for credit losses, Individually evaluated for impairment | 1.5 | 1.9 | ||||
Allowance for credit losses, Collectively evaluated for impairment | 4.9 | 4.6 | ||||
Total allowance for credit losses | 6.9 | 3.6 | 6.5 | 1.9 | 6.4 | 6.5 |
Finance receivable, Individually evaluated for impairment | 1.5 | 1.9 | ||||
Finance receivable, Collectively evaluated for impairment | 272.8 | 329.5 | ||||
Total finance receivables | 274.3 | 331.4 | ||||
Sales-type Leases Portfolio Segment | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning balance | 0.5 | 1.3 | 0.8 | 1.1 | ||
Provision for credit losses | 0.6 | (0.1) | 0.3 | 0.1 | ||
Charge offs | 0.0 | 0.0 | 0.0 | 0.0 | ||
Recoveries | 0.0 | 0.0 | 0.0 | 0.0 | ||
Ending balance | 1.1 | 1.2 | 1.1 | 1.2 | ||
Allowance for credit losses, Individually evaluated for impairment | 0.6 | 0.5 | ||||
Allowance for credit losses, Collectively evaluated for impairment | 0.5 | 0.3 | ||||
Total allowance for credit losses | $ 0.5 | $ 1.3 | $ 0.8 | $ 1.1 | 1.1 | 0.8 |
Finance receivable, Individually evaluated for impairment | 0.6 | 1.8 | ||||
Finance receivable, Collectively evaluated for impairment | 19.3 | 20.1 | ||||
Total finance receivables | $ 19.9 | $ 21.9 |
FINANCE RECEIVABLES - Impaired Finance Receivables (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | $ 2.1 | $ 3.7 | |
Related allowance | 2.1 | 2.4 | |
Average recorded investment | 2.9 | 3.5 | |
Commercial Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 1.5 | 1.9 | |
Related allowance | 1.5 | 1.9 | |
Average recorded investment | 1.7 | $ 0.2 | 1.0 |
Sales-type Leases Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0.6 | 1.8 | |
Related allowance | 0.6 | 0.5 | |
Average recorded investment | $ 1.2 | $ 1.4 | $ 2.5 |
FINANCE RECEIVABLES - Past Due Finance Receivables (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 289.8 | $ 349.8 |
Total past due | 4.4 | 3.5 |
Total finance receivables | 294.2 | 353.3 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3.7 | 1.3 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.1 | 0.0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.6 | 2.2 |
Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 270.9 | 329.6 |
Total past due | 3.4 | 1.8 |
Total finance receivables | 274.3 | 331.4 |
Non-accrual status | 6.9 | 4.8 |
Commercial Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3.1 | 0.8 |
Commercial Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.1 | 0.0 |
Commercial Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.2 | 1.0 |
Sales-type Leases Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 18.9 | 20.2 |
Total past due | 1.0 | 1.7 |
Total finance receivables | 19.9 | 21.9 |
Non-accrual status | 0.9 | 1.3 |
Sales-type Leases Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.6 | 0.5 |
Sales-type Leases Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.0 | 0.0 |
Sales-type Leases Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 0.4 | $ 1.2 |
FINANCE RECEIVABLES - Finance Receivable Credit Quality Indicators (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | $ 294.2 | $ 353.3 |
Superior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | 16.3 | 21.5 |
Above Average | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | 100.1 | 159.4 |
Average | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | 126.6 | 117.9 |
Below Average | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | 47.3 | 44.2 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | $ 3.9 | $ 10.3 |
INVENTORIES (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished equipment | $ 365.7 | $ 429.1 |
Replacement parts | 158.5 | 168.3 |
Work-in-process | 220.0 | 190.4 |
Raw materials and supplies | 234.2 | 275.8 |
Inventories | 978.4 | 1,063.6 |
Inventory reserves | $ 95.1 | $ 76.8 |
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Property, plant and equipment. | ||
Gross property, plant and equipment | $ 711.6 | $ 744.3 |
Less: Accumulated depreciation | (355.8) | (372.4) |
Net property, plant and equipment | 355.8 | 371.9 |
Property | ||
Property, plant and equipment. | ||
Gross property, plant and equipment | 34.1 | 37.2 |
Plant | ||
Property, plant and equipment. | ||
Gross property, plant and equipment | 155.0 | 161.9 |
Equipment | ||
Property, plant and equipment. | ||
Gross property, plant and equipment | $ 522.5 | $ 545.2 |
GOODWILL AND INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Sep. 30, 2016 |
||||||
Changes in goodwill by business segment | |||||||
Balance at the beginning of the period, goodwill gross | $ 525.1 | ||||||
Balance at the beginning of the period, accumulated impairment on goodwill | (66.0) | ||||||
Balance at the beginning of the period, goodwill net | [1] | 459.1 | |||||
Foreign exchange effect and other | (10.4) | ||||||
Balance at the end of the period, goodwill gross | 514.7 | ||||||
Balance at the end of the period, accumulated impairment on goodwill | (66.0) | ||||||
Balance at the end of the period, goodwill net | [2] | 448.7 | |||||
Aerial Work Platforms | |||||||
Goodwill by business segment | |||||||
Goodwill, Other Changes | 0.9 | ||||||
Changes in goodwill by business segment | |||||||
Balance at the beginning of the period, goodwill gross | 137.7 | ||||||
Balance at the beginning of the period, accumulated impairment on goodwill | (38.6) | ||||||
Balance at the beginning of the period, goodwill net | [1] | 99.1 | |||||
Foreign exchange effect and other | (0.6) | ||||||
Balance at the end of the period, goodwill gross | 137.1 | ||||||
Balance at the end of the period, accumulated impairment on goodwill | (38.6) | ||||||
Balance at the end of the period, goodwill net | [2] | 98.5 | |||||
Cranes | |||||||
Changes in goodwill by business segment | |||||||
Balance at the beginning of the period, goodwill gross | 183.1 | ||||||
Balance at the beginning of the period, accumulated impairment on goodwill | (4.2) | ||||||
Balance at the beginning of the period, goodwill net | [1] | 178.9 | |||||
Foreign exchange effect and other | 4.6 | ||||||
Balance at the end of the period, goodwill gross | 187.7 | ||||||
Balance at the end of the period, accumulated impairment on goodwill | (4.2) | ||||||
Balance at the end of the period, goodwill net | [2] | 183.5 | |||||
Materials Processing | |||||||
Changes in goodwill by business segment | |||||||
Balance at the beginning of the period, goodwill gross | 204.3 | ||||||
Balance at the beginning of the period, accumulated impairment on goodwill | (23.2) | ||||||
Balance at the beginning of the period, goodwill net | [1] | 181.1 | |||||
Foreign exchange effect and other | (14.4) | ||||||
Balance at the end of the period, goodwill gross | 189.9 | ||||||
Balance at the end of the period, accumulated impairment on goodwill | (23.2) | ||||||
Balance at the end of the period, goodwill net | [2] | 166.7 | |||||
Construction | |||||||
Changes in goodwill by business segment | |||||||
Goodwill, Fully Impaired Goodwill Written Off | $ 132.8 | ||||||
Discontinued Operations | |||||||
Goodwill by business segment | |||||||
Goodwill, Other Changes | $ 17.9 | ||||||
|
GOODWILL AND INTANGIBLE ASSETS, NET GOODWILL AND INTANGIBLE ASSETS, NET - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Definite-lived intangible assets - Gross Carrying Amount | $ 88.5 | $ 88.5 | $ 88.3 | ||
Definite-lived intangible assets - Accumulated Amortization | (67.2) | (67.2) | (65.7) | ||
Definite-lived intangible assets - Net Carrying Amount | 21.3 | 21.3 | 22.6 | ||
Aggregate Amortization Expense | 0.7 | $ 0.7 | 2.1 | $ 2.2 | |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||||
2016 | 2.9 | 2.9 | |||
2017 | 2.8 | 2.8 | |||
2018 | 2.3 | 2.3 | |||
2019 | 2.2 | 2.2 | |||
2020 | 2.2 | $ 2.2 | |||
Technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Definite-lived intangible assets - Weighted Average Life (in years) | 7 years | ||||
Definite-lived intangible assets - Gross Carrying Amount | 18.1 | $ 18.1 | 17.3 | ||
Definite-lived intangible assets - Accumulated Amortization | (16.6) | (16.6) | (15.7) | ||
Definite-lived intangible assets - Net Carrying Amount | 1.5 | $ 1.5 | 1.6 | ||
Customer Relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Definite-lived intangible assets - Weighted Average Life (in years) | 21 years | ||||
Definite-lived intangible assets - Gross Carrying Amount | 34.2 | $ 34.2 | 34.8 | ||
Definite-lived intangible assets - Accumulated Amortization | (25.3) | (25.3) | (24.9) | ||
Definite-lived intangible assets - Net Carrying Amount | 8.9 | $ 8.9 | 9.9 | ||
Land Use Rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Definite-lived intangible assets - Weighted Average Life (in years) | 68 years | ||||
Definite-lived intangible assets - Gross Carrying Amount | 8.2 | $ 8.2 | 8.2 | ||
Definite-lived intangible assets - Accumulated Amortization | (0.9) | (0.9) | (0.9) | ||
Definite-lived intangible assets - Net Carrying Amount | 7.3 | $ 7.3 | 7.3 | ||
Other Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Definite-lived intangible assets - Weighted Average Life (in years) | 6 years | ||||
Definite-lived intangible assets - Gross Carrying Amount | 28.0 | $ 28.0 | 28.0 | ||
Definite-lived intangible assets - Accumulated Amortization | (24.4) | (24.4) | (24.2) | ||
Definite-lived intangible assets - Net Carrying Amount | $ 3.6 | $ 3.6 | $ 3.8 |
DERIVATIVE FINANCIAL INSTRUMENTS Narratives (Details) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016
USD ($)
types
|
Dec. 31, 2015
USD ($)
|
|
Derivative [Line Items] | ||
Derivatives, Derivative Types | types | 2 | |
Maximum Remaining Maturity of Foreign Currency Derivatives | 1 year | |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 256.6 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | (3.1) | $ 3.1 |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ 0.2 | |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 185.0 | |
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (3.0) |
DERIVATIVE FINANCIAL INSTRUMENTS Balance Sheet and Income Statement Table (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 1.2 | $ 1.2 | $ 1.6 | ||
Derivative Liability, Fair Value, Gross Liability | (2.6) | (2.6) | (0.2) | ||
Derivative, Fair Value, Net | (1.4) | (1.4) | 1.4 | ||
Not Designated as Hedging Instrument | Other Current Assets | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0.5 | 0.5 | 0.5 | ||
Not Designated as Hedging Instrument | Other Assets | Convertible Debt Securities | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0.7 | 0.7 | 1.1 | ||
Not Designated as Hedging Instrument | Other Current Liabilities | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | (2.6) | (2.6) | (0.2) | ||
Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 3.3 | 3.3 | 4.9 | ||
Derivative Liability, Fair Value, Gross Liability | (6.4) | (6.4) | (1.5) | ||
Derivative, Fair Value, Net | (3.1) | (3.1) | 3.4 | ||
Designated as Hedging Instrument | Other Current Assets | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 3.3 | 3.3 | 4.0 | ||
Designated as Hedging Instrument | Other Assets | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 0.0 | 0.0 | 0.9 | ||
Designated as Hedging Instrument | Other Current Liabilities | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | (6.4) | (6.4) | (0.8) | ||
Designated as Hedging Instrument | Other Current Liabilities | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 0.0 | 0.0 | $ (0.7) | ||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (0.1) | $ 0.3 | 0.8 | $ 2.5 | |
Cash Flow Hedging | Cost of Sales | Designated as Hedging Instrument | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0.8 | $ 2.7 | |||
Cash Flow Hedging | Interest Rate Swap | Cost of Sales | Designated as Hedging Instrument | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0.1 | $ 1.0 |
DERIVATIVE FINANCIAL INSTRUMENTS Comprehensive Income Statement and AOCI Table (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Derivative [Line Items] | ||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (2.7) | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ||||
Balance at beginning of period | $ (2.5) | $ 0.4 | 2.3 | $ (0.7) |
Additional gains (losses) – net | (1.0) | 3.5 | (4.5) | 6.5 |
Amounts reclassified to earnings | 0.8 | (2.0) | (0.5) | (3.9) |
Balance at end of period | (2.7) | 1.9 | (2.7) | 1.9 |
Other Income (Expense) Net | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 7.0 | (2.8) | (2.8) | (5.9) |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (0.1) | 0.3 | 0.8 | 2.5 |
Cash Flow Hedging | Other Comprehensive Income (Loss) | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (0.2) | 1.5 | (5.0) | 2.6 |
Cash Flow Hedging | Other Comprehensive Income (Loss) | Foreign Exchange Contract | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (0.2) | 1.8 | (4.8) | 3.0 |
Cash Flow Hedging | Other Comprehensive Income (Loss) | Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0.0 | (0.3) | (0.2) | (0.4) |
Cash Flow Hedging | Cost of Sales | Foreign Exchange Contract | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1.3) | 0.5 | 0.0 | (0.4) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0.8 | 2.7 | ||
Cash Flow Hedging | Other Income (Expense) Net | Foreign Exchange Contract | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | (0.2) | $ (0.5) | (0.2) | $ (0.2) |
Interest Rate Swap | Cash Flow Hedging | Cost of Sales | Foreign Exchange Contract | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0.1 | $ 1.0 |
RESTRUCTURING AND OTHER CHARGES (Details) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|---|
Sep. 30, 2016
USD ($)
team_member
|
Jun. 30, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
team_member
|
Dec. 31, 2015
USD ($)
teammembers
|
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | $ 25.9 | |||
Cumulative amount incurred | $ 27.7 | 27.7 | ||
Total amount expected to be incurred | 38.7 | 38.7 | ||
Roll forward of the restructuring reserve by type of restructuring activity | ||||
Restructuring reserve balance at the beginning of the period | $ 0.9 | 0.9 | ||
Restructuring charges | 21.8 | |||
Cash expenditures | (2.9) | |||
Restructuring Reserve, Translation and Other Adjustment | 0.2 | |||
Restructuring reserve balance at the end of the period | 20.0 | 20.0 | $ 0.9 | |
Employee Termination Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 22.0 | |||
Cumulative amount incurred | 23.2 | 23.2 | ||
Total amount expected to be incurred | 25.2 | 25.2 | ||
Roll forward of the restructuring reserve by type of restructuring activity | ||||
Restructuring reserve balance at the beginning of the period | 0.9 | 0.9 | ||
Restructuring charges | 21.8 | |||
Cash expenditures | (2.9) | |||
Restructuring Reserve, Translation and Other Adjustment | 0.2 | |||
Restructuring reserve balance at the end of the period | 20.0 | 20.0 | $ 0.9 | |
Facility Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 1.3 | |||
Cumulative amount incurred | 1.4 | 1.4 | ||
Total amount expected to be incurred | 2.4 | 2.4 | ||
Asset Disposal and Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 2.6 | |||
Cumulative amount incurred | 3.1 | 3.1 | ||
Total amount expected to be incurred | 11.1 | 11.1 | ||
Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 0.9 | |||
Roll forward of the restructuring reserve by type of restructuring activity | ||||
Restructuring and Related Cost, Number of Positions Eliminated | teammembers | 69 | |||
Aerial Work Platforms | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 0.6 | |||
Cumulative amount incurred | 0.6 | 0.6 | ||
Total amount expected to be incurred | 0.6 | 0.6 | ||
Cranes | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 17.4 | |||
Cumulative amount incurred | 18.2 | 18.2 | ||
Total amount expected to be incurred | 27.5 | 27.5 | ||
Cranes | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 0.8 | |||
Materials Processing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 0.5 | |||
Cumulative amount incurred | 1.5 | 1.5 | ||
Total amount expected to be incurred | 3.2 | 3.2 | ||
Materials Processing | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | $ 0.1 | |||
Corporate and Other / Eliminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | 7.4 | |||
Cumulative amount incurred | 7.4 | 7.4 | ||
Total amount expected to be incurred | 7.4 | 7.4 | ||
UNITED STATES | Materials Processing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense incurred | $ 0.9 | |||
Roll forward of the restructuring reserve by type of restructuring activity | ||||
Restructuring and Related Cost, Number of Positions Eliminated | teammembers | 38 | |||
Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance expenses | 4.0 | |||
Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance expenses | 11.0 | |||
Cranes Segment Transfer of Production Between Facilities [Member] | Facility Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total amount expected to be incurred | 27.5 | $ 27.5 | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | team_member | 250 | |||
Roll forward of the restructuring reserve by type of restructuring activity | ||||
Restructuring charges | $ 17.4 | |||
Corporate Consolidation of Redundant Facilities [Member] | Employee Termination Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total amount expected to be incurred | $ 7.4 | 7.4 | ||
Corporate Consolidation of Redundant Facilities [Member] | Facility Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | team_member | 500 | |||
Severance expenses | $ 7.4 |
LONG-TERM OBLIGATIONS (Details) $ / shares in Units, € in Millions, shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
$ / shares
|
Aug. 31, 2012 |
Mar. 31, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
$ / shares
|
Sep. 30, 2015
USD ($)
$ / shares
|
Sep. 30, 2016
USD ($)
$ / shares
|
Sep. 30, 2015
USD ($)
$ / shares
|
May 28, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jun. 01, 2015
USD ($)
shares
|
Aug. 13, 2014
EUR (€)
|
Aug. 13, 2014
USD ($)
|
Nov. 26, 2012
USD ($)
|
Mar. 26, 2012
USD ($)
|
Jun. 03, 2009
USD ($)
|
Nov. 13, 2007
USD ($)
|
|
Debt Instrument | ||||||||||||||||
Letters of credit outstanding, amount | $ 205.8 | $ 205.8 | $ 205.8 | $ 210.9 | ||||||||||||
Loss on early extinguishment of debt | $ 0.0 | $ 0.0 | (0.4) | $ 0.0 | ||||||||||||
Repayments of Debt | $ 1,004.8 | $ 1,029.4 | ||||||||||||||
Shares, Issued | shares | 3.4 | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||
Credit Agreement 2014 [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Revolving line of credit available borrowing capacity | $ 600.0 | |||||||||||||||
Long-term Line of Credit | $ 70.0 | $ 70.0 | $ 70.0 | |||||||||||||
Debt instrument waived covenant, minimum percentage to be received in cash and cash equivalents from stock and asset purchase agreement | 75.00% | 75.00% | 75.00% | |||||||||||||
Debt instrument covenant, cash proceeds received from stock and asset purchase agreement used to reduce indebtedness | $ 300.0 | $ 300.0 | $ 300.0 | |||||||||||||
Debt instrument covenant, number of days from when consideration is received from stock purchase agreement and is remitted to reduce indebtedness | 60 days | |||||||||||||||
Debt issuance costs | 0.3 | |||||||||||||||
Springing covenant threshold | 30.00% | 30.00% | ||||||||||||||
Debt instrument covenant minimum interest coverage ratio | 2.5 | |||||||||||||||
Debt instrument covenant senior secured debt leverage ratio maximum | 2.75 | |||||||||||||||
Long-term debt | $ 443.7 | $ 443.7 | $ 443.7 | $ 439.2 | ||||||||||||
Debt, weighted average interest rate | 3.54% | 3.54% | 3.54% | 3.50% | ||||||||||||
Maximum amount of letters of credit available under the Credit Agreement | $ 400.0 | |||||||||||||||
Letters of credit outstanding, amount | $ 0.0 | $ 0.0 | $ 0.0 | |||||||||||||
Letters of credit maximum available under additional facilities | $ 300.0 | |||||||||||||||
Percentage of capital stock of foreign subsidiary pledged as collateral for borrowings (as a percent) | 65.00% | 65.00% | ||||||||||||||
Term Loan | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term Line of Credit | $ 230.0 | |||||||||||||||
Long-term debt | 224.0 | 224.0 | $ 224.0 | |||||||||||||
Term Loan Euro | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term Line of Credit | € | € 200.0 | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | 3.25% | ||||||||||||||
Debt instrument, interest rate, stated percentage rate range, minimum | 0.75% | |||||||||||||||
Long-term debt | 219.7 | 219.7 | $ 219.7 | |||||||||||||
2014 Credit Agreement Additional LC Arrangements | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Letters of credit outstanding, amount | $ 35.1 | $ 35.1 | $ 35.1 | $ 21.2 | ||||||||||||
Revolving Credit Facility | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Revolving line of credit available borrowing capacity | $ 600.0 | |||||||||||||||
Debt, weighted average interest rate | 2.63% | 2.63% | 2.63% | |||||||||||||
Bilateral Arrangements | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Letters of credit outstanding, amount | $ 170.7 | $ 170.7 | $ 170.7 | 189.7 | ||||||||||||
Bilateral Arrangements | Discontinued Operations | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Letters of credit outstanding, amount | 146.3 | 146.3 | 146.3 | 153.6 | ||||||||||||
6.5% Senior Notes Due April 1, 2020 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | 300.0 | $ 300.0 | 300.0 | $ 300.0 | ||||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.25% | |||||||||||||||
Interest rate of debt securities (as a percent) | 6.50% | |||||||||||||||
Senior Notes Due May 15, 2021 Six Percent | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | 850.0 | $ 850.0 | 850.0 | $ 850.0 | ||||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.00% | |||||||||||||||
Interest rate of debt securities (as a percent) | 6.00% | |||||||||||||||
8% Senior Subordinated Notes due November 15, 2017 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | $ 800.0 | |||||||||||||||
Interest rate of debt securities (as a percent) | 8.00% | |||||||||||||||
4% Convertible Senior Subordinated Notes due June 1, 2015 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | $ 172.5 | |||||||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 25.00% | |||||||||||||||
Interest rate of debt securities (as a percent) | 4.00% | |||||||||||||||
Carrying value of the equity component of convertible debt | $ 54.3 | |||||||||||||||
Deferred tax liability on equity component of debt | $ 19.4 | |||||||||||||||
Interest expense on convertible debt | $ 5.7 | |||||||||||||||
Long-Term Debt Maturity Value | $ 128.8 | |||||||||||||||
Repayments of Debt | 131.1 | |||||||||||||||
Interest Paid | $ 2.3 | |||||||||||||||
Securitization 2015 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Revolving line of credit available borrowing capacity | $ 350.0 | |||||||||||||||
Long-term Line of Credit | $ 0.0 | $ 0.0 | 0.0 | $ 206.5 | ||||||||||||
Debt, weighted average interest rate | 1.46% | |||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.13% | |||||||||||||||
Commitment Letter | Revolving Credit Facility | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Fee | $ 7.2 | |||||||||||||||
Material Handling and Port Solutions and Construction Sale | Material Handling & Port Solutions | 6.5% Senior Notes Due April 1, 2020 | Discontinued Operations, Held-for-sale | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt instrument, indenture amendment, bondholder consent fees | 0.4 | |||||||||||||||
Material Handling and Port Solutions and Construction Sale | Material Handling & Port Solutions | Senior Notes Due May 15, 2021 Six Percent | Discontinued Operations, Held-for-sale | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt instrument, indenture amendment, bondholder consent fees | $ 1.1 | |||||||||||||||
Scenario, Forecast | Material Handling and Port Solutions and Construction Sale | Material Handling & Port Solutions | 6.5% Senior Notes Due April 1, 2020 | Discontinued Operations, Held-for-sale | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt instrument, indenture amendment, bondholder consent fees | $ 1.1 | |||||||||||||||
Scenario, Forecast | Material Handling and Port Solutions and Construction Sale | Material Handling & Port Solutions | Senior Notes Due May 15, 2021 Six Percent | Discontinued Operations, Held-for-sale | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt instrument, indenture amendment, bondholder consent fees | $ 3.1 |
LONG-TERM OBLIGATIONS LONG-TERM OBLIGATIONS FAIR VALUE OF DEBT (Details) $ in Millions |
Sep. 30, 2016
USD ($)
factor
|
Nov. 26, 2012
USD ($)
|
Mar. 26, 2012
USD ($)
|
---|---|---|---|
Senior Notes Due May 15, 2021 Six Percent | |||
Debt Instrument | |||
Book Value | $ 850.0 | $ 850.0 | |
Quote | factor | 1.02000 | ||
6.5% Senior Notes Due April 1, 2020 | |||
Debt Instrument | |||
Book Value | $ 300.0 | $ 300.0 | |
Quote | factor | 1.02000 | ||
Term Loan | |||
Debt Instrument | |||
Book Value | $ 224.0 | ||
Quote | factor | 0.99625 | ||
Term Loan Euro | |||
Debt Instrument | |||
Book Value | $ 219.7 | ||
Quote | factor | 0.99750 | ||
Fair Value, Inputs, Level 1 | Senior Notes Due May 15, 2021 Six Percent | |||
Debt Instrument | |||
Fair Value | $ 867.0 | ||
Fair Value, Inputs, Level 1 | 6.5% Senior Notes Due April 1, 2020 | |||
Debt Instrument | |||
Fair Value | 306.0 | ||
Fair Value, Inputs, Level 1 | Term Loan | |||
Debt Instrument | |||
Fair Value | 223.0 | ||
Fair Value, Inputs, Level 1 | Term Loan Euro | |||
Debt Instrument | |||
Fair Value | $ 219.0 |
RETIREMENT PLANS AND OTHER BENEFITS (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
U.S. Defined Benefit Pension plans | ||||
Components of net periodic cost: | ||||
Service cost | $ 0.3 | $ 0.3 | $ 0.9 | $ 0.9 |
Interest cost | 1.8 | 1.8 | 5.3 | 5.4 |
Expected return on plan assets | (2.1) | (2.5) | (6.2) | (7.4) |
Amortization of actuarial loss | 1.0 | 1.0 | 3.1 | 2.9 |
Net periodic cost | 1.0 | 0.6 | 3.1 | 1.8 |
Non-U.S. Defined Benefit Pension Plans | ||||
Components of net periodic cost: | ||||
Service cost | 0.7 | 0.6 | 2.1 | 1.9 |
Interest cost | 1.7 | 1.7 | 5.0 | 5.2 |
Expected return on plan assets | (1.5) | (1.7) | (4.7) | (5.2) |
Amortization of actuarial loss | 0.6 | 0.8 | 1.9 | 2.4 |
Net periodic cost | 1.5 | 1.4 | 4.3 | 4.3 |
U.S. Other Benefits | ||||
Components of net periodic cost: | ||||
Service cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Expected return on plan assets | 0.0 | 0.0 | 0.0 | 0.0 |
Amortization of actuarial loss | 0.0 | 0.0 | 0.0 | 0.0 |
Net periodic cost | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
LITIGATION AND CONTINGENCIES (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Loss Contingencies and Guarantee Obligations | ||
Guarantee Terms Maximum | 5 years | |
Fair value of all guarantees recorded in other current liabilities | $ 4.0 | $ 3.0 |
Credit Guarantee | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 40.5 | 39.8 |
Credit Guarantee | Cranes | Terex Cranes Germany GmbH | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 17.9 | 19.0 |
Residual Value Guarantee Member [Domain] | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 5.4 | 3.7 |
Buyback Guarantee | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 5.1 | 6.9 |
Materials Handling and Port Solutions Sale | Credit Guarantee | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 1.8 | 1.7 |
Materials Handling and Port Solutions Sale | Buyback Guarantee | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | $ 4.8 | $ 6.6 |
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 03, 2016 |
Mar. 05, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Feb. 17, 2015 |
|
Net income (loss) | $ 97.3 | $ 44.9 | $ 90.9 | $ 132.4 | |||
Other comprehensive income (loss), net of tax: | |||||||
Cumulative translation adjustment (CTA), net of (provision for) benefit from taxes of $(4.2), $1.9, $(11.9) and $11.1, respectively | 2.2 | (73.9) | (8.3) | (200.1) | |||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (4.2) | 1.9 | (11.9) | 11.1 | |||
Derivative hedging adjustment, net of (provision for) benefit from taxes of $(0.1), $0.0, $0.7 and $0.0, respectively | (0.2) | 1.5 | (5.0) | 2.6 | |||
Derivative hedging adjustment, tax | (0.1) | 0.0 | 0.7 | 0.0 | |||
Debt and equity securities adjustment, net of (provision for) benefit from taxes of $0.0, $0.0, $0.0 and $0.1, respectively | (1.2) | (2.6) | 1.1 | (8.0) | |||
Debt and equity securities adjustment, tax | 0.0 | 0.0 | 0.0 | 0.1 | |||
Pension Liability adjustment: | |||||||
Amortization of actuarial (gain) loss, net of provision for (benefit from) taxes of $(0.8), $(0.4), $(2.4) and $(1.2), respectively | 1.7 | 2.4 | 5.0 | 7.3 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Tax | 0.8 | 0.4 | 2.4 | 1.2 | |||
Foreign exchange and other effects, net of (provision for) benefit from taxes of $0.1, $0.0, $0.3 and $(1.3), respectively | 0.0 | 1.1 | 3.0 | 7.8 | |||
Foreign exchange and other effects, tax | 0.1 | 0.0 | 0.3 | (1.3) | |||
Total pension liability adjustment | 1.7 | 3.5 | 8.0 | 15.1 | |||
Other comprehensive income (loss) | 2.5 | (71.5) | (4.2) | (190.4) | |||
Comprehensive income (loss) | 99.8 | (26.6) | 86.7 | (58.0) | |||
Comprehensive loss (income) attributable to noncontrolling interest | (0.6) | (1.2) | 0.3 | (2.9) | |||
Comprehensive income (loss) attributable to Terex Corporation | $ 99.2 | $ (27.8) | $ 87.0 | $ (60.9) | |||
Share-based compensation | |||||||
Stock Repurchase Program, Authorized Amount | $ 200.0 | ||||||
Treasury Stock, Shares, Acquired | 3.4 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 79.6 | ||||||
Dividends declared per common share | $ 0.07 | $ 0.06 | $ 0.21 | $ 0.18 | |||
Restricted Stock | |||||||
Share-based compensation | |||||||
Granted (in shares) | 2.0 | ||||||
Granted (in dollars per shares) | $ 23.89 | ||||||
Percentage of awards that vest over a three year period (as a percent) | 80.00% | 80.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period [in years] | 3 years | ||||||
Market Condition Award | |||||||
Share-based compensation | |||||||
Percentage of awards that vest at end of three year period (as a percent) | 20.00% | 20.00% | |||||
Dividend yields (as a percent) | 1.22% | ||||||
Expected volatility (as a percent) | 45.59% | ||||||
Risk-free interest rate (as a percent) | 0.97% | ||||||
Expected life (in years) | 3 years | ||||||
Share-based Compensation Award, Tranche Three | Market Condition Award | |||||||
Share-based compensation | |||||||
Granted (in dollars per shares) | $ 29.24 |
STOCKHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Loss) Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (656.3) | $ (548.7) | $ (649.6) | $ (429.8) |
Other comprehensive income before reclassifications | (0.1) | (71.9) | (8.8) | (193.8) |
Amounts reclassified from AOCI | 2.6 | 0.4 | 4.6 | 3.4 |
Other comprehensive income (loss) | 2.5 | (71.5) | (4.2) | (190.4) |
Ending balance | (653.8) | (620.2) | (653.8) | (620.2) |
Cumulative Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (503.2) | (371.7) | (492.7) | (245.5) |
Other comprehensive income before reclassifications | 2.1 | (73.9) | (8.4) | (200.1) |
Amounts reclassified from AOCI | 0.1 | 0.0 | 0.1 | 0.0 |
Other comprehensive income (loss) | 2.2 | (73.9) | (8.3) | (200.1) |
Ending balance | (501.0) | (445.6) | (501.0) | (445.6) |
Deriviatve Hedging Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (2.5) | 0.4 | 2.3 | (0.7) |
Other comprehensive income before reclassifications | (1.0) | 3.5 | (4.5) | 6.5 |
Amounts reclassified from AOCI | 0.8 | (2.0) | (0.5) | (3.9) |
Other comprehensive income (loss) | (0.2) | 1.5 | (5.0) | 2.6 |
Ending balance | (2.7) | 1.9 | (2.7) | 1.9 |
Unrealized Gains and Losses on Debt and Equity Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (4.0) | (3.8) | (6.3) | 1.6 |
Other comprehensive income before reclassifications | (1.2) | (2.6) | 1.1 | (8.0) |
Amounts reclassified from AOCI | 0.0 | 0.0 | 0.0 | 0.0 |
Other comprehensive income (loss) | (1.2) | (2.6) | 1.1 | (8.0) |
Ending balance | (5.2) | (6.4) | (5.2) | (6.4) |
Pension Liability Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (146.6) | (173.6) | (152.9) | (185.2) |
Other comprehensive income before reclassifications | 0.0 | 1.1 | 3.0 | 7.8 |
Amounts reclassified from AOCI | 1.7 | 2.4 | 5.0 | 7.3 |
Other comprehensive income (loss) | 1.7 | 3.5 | 8.0 | 15.1 |
Ending balance | $ (144.9) | $ (170.1) | $ (144.9) | $ (170.1) |
CONSOLIDATING FINANCIAL STATEMENTS (Details) |
Nov. 26, 2012 |
Mar. 26, 2012 |
---|---|---|
Senior Notes Due May 15, 2021 Six Percent | ||
Debt Instrument | ||
Interest rate of debt securities (as a percent) | 6.00% | |
6.5% Senior Notes Due April 1, 2020 | ||
Debt Instrument | ||
Interest rate of debt securities (as a percent) | 6.50% |
CONSOLIDATING FINANCIAL STATEMENTS - Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||
Net sales | $ 1,056.4 | $ 1,255.4 | $ 3,468.4 | $ 3,854.1 |
Cost of goods sold | (872.5) | (1,003.0) | (2,860.7) | (3,098.2) |
Gross profit | 183.9 | 252.4 | 607.7 | 755.9 |
Selling, general and administrative expenses | (144.3) | (160.3) | (483.4) | (489.4) |
Income (loss) from operations | 39.6 | 92.1 | 124.3 | 266.5 |
Interest income | 1.0 | 1.0 | 3.3 | 2.8 |
Interest expense | (25.4) | (25.7) | (75.6) | (82.5) |
Loss on early extinguishment of debt | 0.0 | 0.0 | (0.4) | 0.0 |
Income (loss) from subsidiaries | 0.0 | 0.0 | 0.0 | 0.0 |
Other income (expense) – net | (1.3) | (11.5) | (13.3) | (17.8) |
Income (loss) from continuing operations before income taxes | 13.9 | 55.9 | 38.3 | 169.0 |
(Provision for) benefit from income taxes | 19.3 | (25.6) | 82.5 | (64.5) |
Income (loss) from continuing operations | 33.2 | 30.3 | 120.8 | 104.5 |
Income (loss) from discontinued operations – net of tax | 64.1 | 15.8 | (33.4) | 26.4 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.0 | (1.2) | 3.5 | 1.5 |
Net income (loss) | 97.3 | 44.9 | 90.9 | 132.4 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.1 | 0.0 | 0.1 | 0.1 |
Net loss (income) from discontinued operations attributable to noncontrolling interest | (0.6) | (1.3) | 0.1 | (3.1) |
Net income (loss) attributable to Terex Corporation | 96.8 | 43.6 | 91.1 | 129.4 |
Comprehensive Income (Loss) | 99.8 | (26.6) | 86.7 | (58.0) |
Comprehensive loss (income) Attributable to Noncontrolling Interest | (0.6) | (1.2) | 0.3 | (2.9) |
Comprehensive income (loss) attributable to Terex Corporation | 99.2 | (27.8) | 87.0 | (60.9) |
Terex Corporation | ||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||
Net sales | 2.3 | 2.8 | 4.5 | 8.3 |
Cost of goods sold | (2.0) | (2.3) | (3.9) | (6.5) |
Gross profit | 0.3 | 0.5 | 0.6 | 1.8 |
Selling, general and administrative expenses | (9.4) | (5.5) | (27.6) | (12.0) |
Income (loss) from operations | (9.1) | (5.0) | (27.0) | (10.2) |
Interest income | 24.1 | 25.5 | 73.4 | 78.2 |
Interest expense | (37.6) | (37.6) | (111.7) | (118.0) |
Loss on early extinguishment of debt | 0.0 | |||
Income (loss) from subsidiaries | 75.7 | 59.4 | 228.5 | 173.7 |
Other income (expense) – net | (8.9) | (22.0) | (42.7) | (47.9) |
Income (loss) from continuing operations before income taxes | 44.2 | 20.3 | 120.5 | 75.8 |
(Provision for) benefit from income taxes | (11.0) | 10.0 | 0.3 | 28.7 |
Income (loss) from continuing operations | 33.2 | 30.3 | 120.8 | 104.5 |
Income (loss) from discontinued operations – net of tax | 64.1 | 15.8 | (33.4) | 26.4 |
Gain (loss) on disposition of discontinued operations – net of tax | (0.6) | 0.5 | (0.6) | |
Net income (loss) | 97.3 | 45.5 | 87.9 | 130.3 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.0 | 0.0 | 0.0 | 0.0 |
Net loss (income) from discontinued operations attributable to noncontrolling interest | 0.0 | 0.0 | 0.0 | 0.0 |
Net income (loss) attributable to Terex Corporation | 97.3 | 45.5 | 87.9 | 130.3 |
Comprehensive Income (Loss) | 99.2 | (27.8) | 87.0 | (60.9) |
Comprehensive loss (income) Attributable to Noncontrolling Interest | 0.0 | 0.0 | 0.0 | 0.0 |
Comprehensive income (loss) attributable to Terex Corporation | 99.2 | (27.8) | 87.0 | (60.9) |
Wholly-owned Guarantors | ||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||
Net sales | 539.3 | 744.4 | 1,963.3 | 2,343.3 |
Cost of goods sold | (466.7) | (596.7) | (1,683.5) | (1,913.9) |
Gross profit | 72.6 | 147.7 | 279.8 | 429.4 |
Selling, general and administrative expenses | (55.0) | (64.6) | (189.2) | (199.4) |
Income (loss) from operations | 17.6 | 83.1 | 90.6 | 230.0 |
Interest income | 17.2 | 17.3 | 51.5 | 51.5 |
Interest expense | (2.1) | (1.8) | (6.5) | (4.5) |
Loss on early extinguishment of debt | 0.0 | |||
Income (loss) from subsidiaries | 0.9 | 2.6 | 11.2 | 0.2 |
Other income (expense) – net | 11.3 | 2.7 | 27.6 | (1.2) |
Income (loss) from continuing operations before income taxes | 44.9 | 103.9 | 174.4 | 276.0 |
(Provision for) benefit from income taxes | 16.3 | (31.8) | 3.4 | (78.0) |
Income (loss) from continuing operations | 61.2 | 72.1 | 177.8 | 198.0 |
Income (loss) from discontinued operations – net of tax | (3.7) | 1.2 | (6.8) | 2.5 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.0 | 0.0 | 0.0 | |
Net income (loss) | 57.5 | 73.3 | 171.0 | 200.5 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.0 | 0.0 | 0.0 | 0.0 |
Net loss (income) from discontinued operations attributable to noncontrolling interest | 0.0 | 0.0 | 0.0 | 0.0 |
Net income (loss) attributable to Terex Corporation | 57.5 | 73.3 | 171.0 | 200.5 |
Comprehensive Income (Loss) | 57.8 | 73.0 | 171.7 | 200.3 |
Comprehensive loss (income) Attributable to Noncontrolling Interest | 0.0 | 0.0 | 0.0 | 0.0 |
Comprehensive income (loss) attributable to Terex Corporation | 57.8 | 73.0 | 171.7 | 200.3 |
Non-guarantor Subsidiaries | ||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||
Net sales | 664.7 | 738.8 | 2,121.3 | 2,207.2 |
Cost of goods sold | (548.1) | (634.6) | (1,781.1) | (1,882.5) |
Gross profit | 116.6 | 104.2 | 340.2 | 324.7 |
Selling, general and administrative expenses | (85.5) | (90.2) | (279.5) | (278.0) |
Income (loss) from operations | 31.1 | 14.0 | 60.7 | 46.7 |
Interest income | 0.3 | 0.5 | 1.6 | 1.4 |
Interest expense | (26.3) | (28.6) | (80.6) | (88.3) |
Loss on early extinguishment of debt | (0.4) | |||
Income (loss) from subsidiaries | 2.3 | (0.3) | (3.1) | 0.2 |
Other income (expense) – net | (3.7) | 7.8 | 1.8 | 31.3 |
Income (loss) from continuing operations before income taxes | 3.7 | (6.6) | (20.0) | (8.7) |
(Provision for) benefit from income taxes | 14.0 | (3.8) | 78.8 | (15.2) |
Income (loss) from continuing operations | 17.7 | (10.4) | 58.8 | (23.9) |
Income (loss) from discontinued operations – net of tax | 64.4 | 15.5 | (33.7) | 25.9 |
Gain (loss) on disposition of discontinued operations – net of tax | (0.6) | 3.0 | 2.1 | |
Net income (loss) | 82.1 | 4.5 | 28.1 | 4.1 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.1 | 0.0 | 0.1 | 0.1 |
Net loss (income) from discontinued operations attributable to noncontrolling interest | (0.6) | (1.3) | 0.1 | (3.1) |
Net income (loss) attributable to Terex Corporation | 81.6 | 3.2 | 28.3 | 1.1 |
Comprehensive Income (Loss) | 101.4 | (35.4) | 114.2 | (159.0) |
Comprehensive loss (income) Attributable to Noncontrolling Interest | (0.6) | (1.2) | 0.3 | (2.9) |
Comprehensive income (loss) attributable to Terex Corporation | 100.8 | (36.6) | 114.5 | (161.9) |
Intercompany Eliminations | ||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ||||
Net sales | (149.9) | (230.6) | (620.7) | (704.7) |
Cost of goods sold | 144.3 | 230.6 | 607.8 | 704.7 |
Gross profit | (5.6) | 0.0 | (12.9) | 0.0 |
Selling, general and administrative expenses | 5.6 | 0.0 | 12.9 | 0.0 |
Income (loss) from operations | 0.0 | 0.0 | 0.0 | 0.0 |
Interest income | (40.6) | (42.3) | (123.2) | (128.3) |
Interest expense | 40.6 | 42.3 | 123.2 | 128.3 |
Loss on early extinguishment of debt | 0.0 | |||
Income (loss) from subsidiaries | (78.9) | (61.7) | (236.6) | (174.1) |
Other income (expense) – net | 0.0 | 0.0 | 0.0 | 0.0 |
Income (loss) from continuing operations before income taxes | (78.9) | (61.7) | (236.6) | (174.1) |
(Provision for) benefit from income taxes | 0.0 | 0.0 | 0.0 | 0.0 |
Income (loss) from continuing operations | (78.9) | (61.7) | (236.6) | (174.1) |
Income (loss) from discontinued operations – net of tax | (60.7) | (16.7) | 40.5 | (28.4) |
Gain (loss) on disposition of discontinued operations – net of tax | 0.0 | 0.0 | 0.0 | |
Net income (loss) | (139.6) | (78.4) | (196.1) | (202.5) |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.0 | 0.0 | 0.0 | 0.0 |
Net loss (income) from discontinued operations attributable to noncontrolling interest | 0.0 | 0.0 | 0.0 | 0.0 |
Net income (loss) attributable to Terex Corporation | (139.6) | (78.4) | (196.1) | (202.5) |
Comprehensive Income (Loss) | (158.6) | (36.4) | (286.2) | (38.4) |
Comprehensive loss (income) Attributable to Noncontrolling Interest | 0.0 | 0.0 | 0.0 | 0.0 |
Comprehensive income (loss) attributable to Terex Corporation | $ (158.6) | $ (36.4) | $ (286.2) | $ (38.4) |
CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
||||||
---|---|---|---|---|---|---|---|---|
Current assets | ||||||||
Cash and cash equivalents | $ 248.8 | $ 371.2 | ||||||
Trade receivables - net | 656.8 | 703.3 | ||||||
Intercompany receivables | 0.0 | 0.0 | ||||||
Inventories | 978.4 | 1,063.6 | ||||||
Prepaid and other current assets | 229.6 | 252.5 | ||||||
Current assets held for sale | 806.8 | 749.6 | ||||||
Total current assets | 2,920.4 | 3,140.2 | ||||||
Property, plant and equipment – net | 355.8 | 371.9 | ||||||
Goodwill | 448.7 | [1] | 459.1 | [2] | ||||
Non-current intercompany receivables | 0.0 | 0.0 | ||||||
Investment in and advances to (from) subsidiaries | 48.3 | 45.3 | ||||||
Other assets | 564.7 | 439.0 | ||||||
Non-current assets held for sale | 1,231.4 | 1,160.5 | ||||||
Total assets | 5,569.3 | 5,616.0 | ||||||
Current liabilities | ||||||||
Notes payable and current portion of long-term debt | 10.5 | 66.4 | ||||||
Trade accounts payable | 474.5 | 560.7 | ||||||
Intercompany payables | 0.0 | 0.0 | ||||||
Accruals and other current liabilities | 493.4 | 385.5 | ||||||
Current liabilities held for sale | 497.0 | 446.0 | ||||||
Total current liabilities | 1,475.4 | 1,458.6 | ||||||
Long-term debt, less current portion | 1,653.0 | 1,729.8 | ||||||
Non-current intercompany payables | 0.0 | 0.0 | ||||||
Retirement plans and other non-current liabilities | 212.3 | 217.1 | ||||||
Non-current liabilities held for sale | 315.0 | 298.5 | ||||||
Total stockholders' equity | 1,913.6 | 1,912.0 | ||||||
Total liabilities and stockholders’ equity | 5,569.3 | 5,616.0 | ||||||
Terex Corporation | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 4.2 | 91.7 | ||||||
Trade receivables - net | 7.4 | 5.2 | ||||||
Intercompany receivables | 46.7 | 57.5 | ||||||
Inventories | 0.4 | 0.0 | ||||||
Prepaid and other current assets | 65.5 | 108.6 | ||||||
Current assets held for sale | 0.0 | 0.0 | ||||||
Total current assets | 124.2 | 263.0 | ||||||
Property, plant and equipment – net | 53.2 | 57.9 | ||||||
Goodwill | 0.0 | 0.0 | ||||||
Non-current intercompany receivables | 1,341.6 | 1,353.8 | ||||||
Investment in and advances to (from) subsidiaries | 4,393.5 | 4,010.2 | ||||||
Other assets | 47.9 | 29.2 | ||||||
Non-current assets held for sale | 0.0 | 0.0 | ||||||
Total assets | 5,960.4 | 5,714.1 | ||||||
Current liabilities | ||||||||
Notes payable and current portion of long-term debt | 0.0 | 0.0 | ||||||
Trade accounts payable | 22.4 | 21.4 | ||||||
Intercompany payables | 4.8 | 3.1 | ||||||
Accruals and other current liabilities | 71.2 | 59.8 | ||||||
Current liabilities held for sale | 0.0 | 0.0 | ||||||
Total current liabilities | 98.4 | 84.3 | ||||||
Long-term debt, less current portion | 1,209.9 | 1,138.1 | ||||||
Non-current intercompany payables | 2,719.5 | 2,562.3 | ||||||
Retirement plans and other non-current liabilities | 54.9 | 52.0 | ||||||
Non-current liabilities held for sale | 0.0 | 0.0 | ||||||
Total stockholders' equity | 1,877.7 | 1,877.4 | ||||||
Total liabilities and stockholders’ equity | 5,960.4 | 5,714.1 | ||||||
Wholly-owned Guarantors | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 0.5 | 0.2 | ||||||
Trade receivables - net | 186.9 | 241.7 | ||||||
Intercompany receivables | 54.2 | 55.3 | ||||||
Inventories | 368.4 | 424.2 | ||||||
Prepaid and other current assets | 93.3 | 33.9 | ||||||
Current assets held for sale | 21.6 | 17.1 | ||||||
Total current assets | 724.9 | 772.4 | ||||||
Property, plant and equipment – net | 152.1 | 145.9 | ||||||
Goodwill | 164.1 | 162.2 | ||||||
Non-current intercompany receivables | 2,888.3 | 2,786.4 | ||||||
Investment in and advances to (from) subsidiaries | 97.6 | 94.4 | ||||||
Other assets | 231.3 | 104.3 | ||||||
Non-current assets held for sale | 120.3 | 29.5 | ||||||
Total assets | 4,378.6 | 4,095.1 | ||||||
Current liabilities | ||||||||
Notes payable and current portion of long-term debt | 0.7 | 0.7 | ||||||
Trade accounts payable | 176.6 | 222.8 | ||||||
Intercompany payables | 49.1 | 56.6 | ||||||
Accruals and other current liabilities | 128.9 | 113.5 | ||||||
Current liabilities held for sale | 16.5 | 17.6 | ||||||
Total current liabilities | 371.8 | 411.2 | ||||||
Long-term debt, less current portion | 0.7 | 1.2 | ||||||
Non-current intercompany payables | 0.0 | 0.0 | ||||||
Retirement plans and other non-current liabilities | 33.5 | 35.3 | ||||||
Non-current liabilities held for sale | 0.0 | 0.0 | ||||||
Total stockholders' equity | 3,972.6 | 3,647.4 | ||||||
Total liabilities and stockholders’ equity | 4,378.6 | 4,095.1 | ||||||
Non-guarantor Subsidiaries | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 244.1 | 279.3 | ||||||
Trade receivables - net | 462.5 | 456.4 | ||||||
Intercompany receivables | 69.2 | 64.7 | ||||||
Inventories | 609.6 | 639.4 | ||||||
Prepaid and other current assets | 70.8 | 110.0 | ||||||
Current assets held for sale | 785.2 | 732.5 | ||||||
Total current assets | 2,241.4 | 2,282.3 | ||||||
Property, plant and equipment – net | 150.5 | 168.1 | ||||||
Goodwill | 284.6 | 296.9 | ||||||
Non-current intercompany receivables | 88.9 | 72.9 | ||||||
Investment in and advances to (from) subsidiaries | 110.1 | 95.2 | ||||||
Other assets | 285.5 | 305.5 | ||||||
Non-current assets held for sale | 1,111.1 | 1,131.0 | ||||||
Total assets | 4,272.1 | 4,351.9 | ||||||
Current liabilities | ||||||||
Notes payable and current portion of long-term debt | 9.8 | 65.7 | ||||||
Trade accounts payable | 275.5 | 316.5 | ||||||
Intercompany payables | 116.2 | 117.8 | ||||||
Accruals and other current liabilities | 293.3 | 212.2 | ||||||
Current liabilities held for sale | 480.5 | 428.4 | ||||||
Total current liabilities | 1,175.3 | 1,140.6 | ||||||
Long-term debt, less current portion | 442.4 | 590.5 | ||||||
Non-current intercompany payables | 1,599.3 | 1,650.8 | ||||||
Retirement plans and other non-current liabilities | 123.9 | 129.8 | ||||||
Non-current liabilities held for sale | 315.0 | 298.5 | ||||||
Total stockholders' equity | 616.2 | 541.7 | ||||||
Total liabilities and stockholders’ equity | 4,272.1 | 4,351.9 | ||||||
Intercompany Eliminations | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 0.0 | 0.0 | ||||||
Trade receivables - net | 0.0 | 0.0 | ||||||
Intercompany receivables | (170.1) | (177.5) | ||||||
Inventories | 0.0 | 0.0 | ||||||
Prepaid and other current assets | 0.0 | 0.0 | ||||||
Current assets held for sale | 0.0 | 0.0 | ||||||
Total current assets | (170.1) | (177.5) | ||||||
Property, plant and equipment – net | 0.0 | 0.0 | ||||||
Goodwill | 0.0 | 0.0 | ||||||
Non-current intercompany receivables | (4,318.8) | (4,213.1) | ||||||
Investment in and advances to (from) subsidiaries | (4,552.9) | (4,154.5) | ||||||
Other assets | 0.0 | 0.0 | ||||||
Non-current assets held for sale | 0.0 | 0.0 | ||||||
Total assets | (9,041.8) | (8,545.1) | ||||||
Current liabilities | ||||||||
Notes payable and current portion of long-term debt | 0.0 | 0.0 | ||||||
Trade accounts payable | 0.0 | 0.0 | ||||||
Intercompany payables | (170.1) | (177.5) | ||||||
Accruals and other current liabilities | 0.0 | 0.0 | ||||||
Current liabilities held for sale | 0.0 | 0.0 | ||||||
Total current liabilities | (170.1) | (177.5) | ||||||
Long-term debt, less current portion | 0.0 | 0.0 | ||||||
Non-current intercompany payables | (4,318.8) | (4,213.1) | ||||||
Retirement plans and other non-current liabilities | 0.0 | 0.0 | ||||||
Non-current liabilities held for sale | 0.0 | 0.0 | ||||||
Total stockholders' equity | (4,552.9) | (4,154.5) | ||||||
Total liabilities and stockholders’ equity | $ (9,041.8) | $ (8,545.1) | ||||||
|
CONSOLIDATING FINANCIAL STATEMENTS - Cash Flows (Details) - USD ($) $ in Millions |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net Cash Provided by (Used in) Operating Activities | $ 90.8 | $ (56.6) | ||||
Cash flows from investing activities | ||||||
Capital expenditures | (64.2) | (73.4) | ||||
Proceeds (payments) from disposition of discontinued operations | 3.5 | (0.2) | ||||
Acquisitions, net of cash acquired | (3.2) | (71.3) | ||||
Proceeds from sale of assets | 63.7 | 0.8 | ||||
Intercompany investing activities | 0.0 | 0.0 | [1] | |||
Other investing activities, net | (2.5) | 0.0 | ||||
Net Cash Provided by (Used in) Investing Activities | (2.7) | (144.1) | ||||
Cash flows from financing activities | ||||||
Repayments of debt | (1,004.8) | (1,029.4) | ||||
Proceeds from issuance of debt | 889.9 | 1,153.6 | ||||
Share repurchases | (80.9) | (50.4) | ||||
Dividends paid | (22.7) | (19.3) | ||||
Intercompany financing activities | [1] | 0.0 | 0.0 | |||
Other financing activities, net | 1.2 | (1.3) | ||||
Net Cash Provided by (Used in) Financing Activities | (217.3) | 53.2 | ||||
Effect of exchange rate changes on cash and cash equivalents | 6.4 | (29.6) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (122.8) | (177.1) | ||||
Cash and cash equivalents, beginning balance | 466.5 | 478.2 | ||||
Cash and cash equivalents, ending balance | 343.7 | 301.1 | ||||
Terex Corporation | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net Cash Provided by (Used in) Operating Activities | (188.5) | (413.2) | ||||
Cash flows from investing activities | ||||||
Capital expenditures | (2.0) | (1.6) | ||||
Proceeds (payments) from disposition of discontinued operations | 0.0 | (3.4) | ||||
Acquisitions, net of cash acquired | 0.0 | 0.0 | ||||
Proceeds from sale of assets | 0.1 | (1.0) | ||||
Intercompany investing activities | 136.6 | 454.5 | [1] | |||
Other investing activities, net | 0.0 | 0.0 | ||||
Net Cash Provided by (Used in) Investing Activities | 134.7 | 448.5 | ||||
Cash flows from financing activities | ||||||
Repayments of debt | (742.8) | (983.6) | ||||
Proceeds from issuance of debt | 812.8 | 927.0 | ||||
Share repurchases | (80.9) | (50.4) | ||||
Dividends paid | (22.7) | (19.3) | ||||
Intercompany financing activities | [1] | 0.0 | 0.0 | |||
Other financing activities, net | 0.0 | 0.6 | ||||
Net Cash Provided by (Used in) Financing Activities | (33.6) | (125.7) | ||||
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (87.4) | (90.4) | ||||
Cash and cash equivalents, beginning balance | 91.6 | 99.0 | ||||
Cash and cash equivalents, ending balance | 4.2 | 8.6 | ||||
Wholly-owned Guarantors | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net Cash Provided by (Used in) Operating Activities | 262.9 | 423.9 | ||||
Cash flows from investing activities | ||||||
Capital expenditures | (30.9) | (31.1) | ||||
Proceeds (payments) from disposition of discontinued operations | 0.0 | 0.0 | ||||
Acquisitions, net of cash acquired | 0.0 | (52.1) | ||||
Proceeds from sale of assets | 5.9 | 0.1 | ||||
Intercompany investing activities | (97.5) | 0.0 | [1] | |||
Other investing activities, net | 0.0 | 0.0 | ||||
Net Cash Provided by (Used in) Investing Activities | (122.5) | (83.1) | ||||
Cash flows from financing activities | ||||||
Repayments of debt | (0.6) | (6.2) | ||||
Proceeds from issuance of debt | 0.0 | 0.0 | ||||
Share repurchases | 0.0 | 0.0 | ||||
Dividends paid | 0.0 | 0.0 | ||||
Intercompany financing activities | [1] | (138.6) | (332.3) | |||
Other financing activities, net | 0.0 | 0.0 | ||||
Net Cash Provided by (Used in) Financing Activities | (139.2) | (338.5) | ||||
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 1.2 | 2.3 | ||||
Cash and cash equivalents, beginning balance | 3.1 | 1.9 | ||||
Cash and cash equivalents, ending balance | 4.3 | 4.2 | ||||
Non-guarantor Subsidiaries | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net Cash Provided by (Used in) Operating Activities | 10.7 | 109.3 | ||||
Cash flows from investing activities | ||||||
Capital expenditures | (31.3) | (40.7) | ||||
Proceeds (payments) from disposition of discontinued operations | 3.5 | 3.2 | ||||
Acquisitions, net of cash acquired | (3.2) | (19.2) | ||||
Proceeds from sale of assets | 57.7 | 1.7 | ||||
Intercompany investing activities | (23.4) | (188.9) | [1] | |||
Other investing activities, net | 26.6 | 17.3 | ||||
Net Cash Provided by (Used in) Investing Activities | 29.9 | (226.6) | ||||
Cash flows from financing activities | ||||||
Repayments of debt | (261.4) | (39.6) | ||||
Proceeds from issuance of debt | 77.1 | 226.6 | ||||
Share repurchases | 0.0 | 0.0 | ||||
Dividends paid | 0.0 | 0.0 | ||||
Intercompany financing activities | [1] | 99.5 | (127.2) | |||
Other financing activities, net | 1.2 | (1.9) | ||||
Net Cash Provided by (Used in) Financing Activities | (83.6) | 57.9 | ||||
Effect of exchange rate changes on cash and cash equivalents | 6.4 | (29.6) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (36.6) | (89.0) | ||||
Cash and cash equivalents, beginning balance | 371.8 | 377.3 | ||||
Cash and cash equivalents, ending balance | 335.2 | 288.3 | ||||
Intercompany Eliminations | ||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||
Net Cash Provided by (Used in) Operating Activities | 5.7 | (176.6) | ||||
Cash flows from investing activities | ||||||
Capital expenditures | 0.0 | 0.0 | ||||
Proceeds (payments) from disposition of discontinued operations | 0.0 | 0.0 | ||||
Acquisitions, net of cash acquired | 0.0 | 0.0 | ||||
Proceeds from sale of assets | 0.0 | 0.0 | ||||
Intercompany investing activities | (15.7) | (265.6) | [1] | |||
Other investing activities, net | (29.1) | (17.3) | ||||
Net Cash Provided by (Used in) Investing Activities | (44.8) | (282.9) | ||||
Cash flows from financing activities | ||||||
Repayments of debt | 0.0 | 0.0 | ||||
Proceeds from issuance of debt | 0.0 | 0.0 | ||||
Share repurchases | 0.0 | 0.0 | ||||
Dividends paid | 0.0 | 0.0 | ||||
Intercompany financing activities | [1] | 39.1 | 459.5 | |||
Other financing activities, net | 0.0 | 0.0 | ||||
Net Cash Provided by (Used in) Financing Activities | 39.1 | 459.5 | ||||
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 0.0 | 0.0 | ||||
Cash and cash equivalents, beginning balance | 0.0 | 0.0 | ||||
Cash and cash equivalents, ending balance | $ 0.0 | $ 0.0 | ||||
|
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