STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Changes in Accumulated Other Comprehensive Income (Loss)

The table below presents changes in AOCI by component for the three and nine months ended September 30, 2021 and 2020. All amounts are net of tax (in millions).

	Three Months Ended September 30, 2021										Three Months Ended September 30, 2020
	CTA		Derivative Hedging Adj.		Debt & Equity Securities Adj.		Pension Liability Adj.		Total		CTA		Derivative Hedging Adj.		Debt & Equity Securities Adj.		Pension Liability Adj.		Total
Beginning balance	$	(156.6)	$	13.7	$	0.6	$	(57.7)	$	(200.0)	$	(243.5)	$	(7.1)	$	3.6	$	(47.8)	$	(294.8)
Other comprehensive income (loss) before reclassifications	(27.1)		1.1		(0.2)		1.5		(24.7)		45.0		(2.7)		0.3		(2.0)		40.6
Amounts reclassified from AOCI	—		(5.0)		—		0.4		(4.6)		—		(0.1)		—		0.4		0.3
Net other comprehensive income (loss)	(27.1)		(3.9)		(0.2)		1.9		(29.3)		45.0		(2.8)		0.3		(1.6)		40.9
Ending balance	$	(183.7)	$	9.8	$	0.4	$	(55.8)	$	(229.3)	$	(198.5)	$	(9.9)	$	3.9	$	(49.4)	$	(253.9)

	Nine Months Ended September 30, 2021										Nine Months Ended September 30, 2020
	CTA		Derivative Hedging Adj.		Debt & Equity Securities Adj.		Pension Liability Adj.		Total		CTA		Derivative Hedging Adj.		Debt & Equity Securities Adj.		Pension Liability Adj.		Total
Beginning balance	$	(145.2)	$	(6.0)	$	1.2	$	(58.4)	$	(208.4)	$	(208.2)	$	(0.8)	$	2.6	$	(51.1)	$	(257.5)
Other comprehensive income (loss) before reclassifications	(38.5)		21.6		(0.8)		1.1		(16.6)		9.7		(12.5)		1.3		0.5		(1.0)
Amounts reclassified from AOCI	—		(5.8)		—		1.5		(4.3)		—		3.4		—		1.2		4.6
Net other comprehensive income (loss)	(38.5)		15.8		(0.8)		2.6		(20.9)		9.7		(9.1)		1.3		1.7		3.6
Ending balance	$	(183.7)	$	9.8	$	0.4	$	(55.8)	$	(229.3)	$	(198.5)	$	(9.9)	$	3.9	$	(49.4)	$	(253.9)

Stock-Based Compensation

During the nine months ended September 30, 2021, the Company awarded 0.6 million shares of restricted stock awards to its employees with a weighted average grant date fair value of $44.56 per share. Approximately 58% of these awards are time-based and vest ratably on each of the first three anniversary dates of the grants. Approximately 28% cliff vest at the end of a three-year period and are subject to performance targets that may or may not be met and for which the performance period has not yet been completed. Approximately 14% cliff vest and are based on performance targets containing a market condition determined over a three-year period.

The Company used the Monte Carlo method to determine grant date fair value of $54.92 per share for restricted stock awards with a market condition granted on March 4, 2021. 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:

	Grant date
	March 4, 2021
Dividend yields	1.12	%
Expected volatility	53.03	%
Risk free interest rate	0.29	%
Expected life (in years)	3

Share Repurchases and Dividends

In July 2018, Terex’s Board of Directors authorized the Company to repurchase up to $300 million of the Company’s outstanding shares of common stock. During the nine months ended September 30, 2021, the Company did not repurchase shares under these programs. During the nine months ended September 30, 2020, the Company repurchased 2.5 million shares for $54.6 million under these programs.

Terex’s Board of Directors declared a dividend of $0.12 per share in the first, second and third quarters of 2021, which was paid to the Company’s shareholders. In October 2021, Terex’s Board of Directors declared a dividend of $0.12 per share, which will be paid to the Company’s shareholders on December 17, 2021.