QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||||||||
Smaller reporting company | Emerging growth company |
PAGE | ||||||||
ITEM 1. | FINANCIAL STATEMENTS |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of goods sold | ( | ( | |||||||||
Gross profit | |||||||||||
Selling, general and administrative expenses | ( | ( | |||||||||
Income (loss) from operations | |||||||||||
Other income (expense) | |||||||||||
Interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Other income (expense) – net | ( | ( | |||||||||
Income (loss) from continuing operations before income taxes | |||||||||||
(Provision for) benefit from income taxes | ( | ( | |||||||||
Income (loss) from continuing operations | |||||||||||
Gain (loss) on disposition of discontinued operations – net of tax | |||||||||||
Net income (loss) | $ | $ | |||||||||
Basic earnings (loss) per share: | |||||||||||
Income (loss) from continuing operations | $ | $ | |||||||||
Gain (loss) on disposition of discontinued operations – net of tax | |||||||||||
Net income (loss) | $ | $ | |||||||||
Diluted earnings (loss) per share: | |||||||||||
Income (loss) from continuing operations | $ | $ | |||||||||
Gain (loss) on disposition of discontinued operations – net of tax | |||||||||||
Net income (loss) | $ | $ | |||||||||
Weighted average number of shares outstanding in per share calculation | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Comprehensive income (loss) | $ | $ | |||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables (net of allowance of $ | |||||||||||
Inventories | |||||||||||
Prepaid and other current assets | |||||||||||
Total current assets | |||||||||||
Non-current assets | |||||||||||
Property, plant and equipment – net | |||||||||||
Goodwill | |||||||||||
Intangible assets – net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Trade accounts payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities | |||||||||||
Long-term debt, less current portion | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Less cost of shares of common stock in treasury – | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Outstanding Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury | Total | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) – net of tax | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Issuance of common stock related to compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Compensation under stock-based plans – net | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Outstanding Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury | Total | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) – net of tax | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock related to compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Compensation under stock-based plans – net | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Dividends | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | ( | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Inventory and other non-cash charges | |||||||||||
Changes in operating assets and liabilities (net of effects of acquisitions and divestitures): | |||||||||||
Receivables | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Trade accounts payable | |||||||||||
Other assets and liabilities | ( | ( | |||||||||
Foreign exchange and other operating activities, net | ( | ||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Investing Activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisitions, net of cash acquired, and investments | ( | ( | |||||||||
Other investing activities, net | |||||||||||
Net cash provided by (used in) investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Repayments of debt | ( | ( | |||||||||
Proceeds from issuance of debt | |||||||||||
Share repurchases | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Other financing activities, net | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | ( | ||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | ( | ( | |||||||||
Cash and Cash Equivalents at Beginning of Period | |||||||||||
Cash and Cash Equivalents at End of Period | $ | $ |
Balance as of December 31, 2023 | $ | ||||
Provision for credit losses | |||||
Other (1) | ( | ||||
Balance as of March 31, 2024 | $ | ||||
(1) Includes utilization of established reserves, net of recoveries and the impact of foreign exchange rate changes. |
Balance as of December 31, 2023 | $ | ||||
Accruals for warranties issued during the period | |||||
Changes in estimates | |||||
Settlements during the period | ( | ||||
Foreign exchange effect/other | ( | ||||
Balance as of March 31, 2024 | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net sales | |||||||||||
MP | $ | $ | |||||||||
AWP | |||||||||||
Corporate and Other / Eliminations | ( | ( | |||||||||
Total | $ | $ | |||||||||
Income (loss) from operations | |||||||||||
MP | $ | $ | |||||||||
AWP | |||||||||||
Corporate and Other / Eliminations | ( | ( | |||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Identifiable assets | |||||||||||
MP | $ | $ | |||||||||
AWP | |||||||||||
Corporate and Other / Eliminations | ( | ( | |||||||||
Total | $ | $ |
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
MP | AWP | Corporate and Other / Eliminations | Total | MP | AWP | Corporate and Other / Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Net sales by region | |||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Western Europe | |||||||||||||||||||||||||||||||||||||||||||||||
Asia-Pacific | |||||||||||||||||||||||||||||||||||||||||||||||
Rest of World (1) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total (2) | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
MP | AWP | Corporate and Other / Eliminations | Total | MP | AWP | Corporate and Other / Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Net sales by product type | |||||||||||||||||||||||||||||||||||||||||||||||
Aerial Work Platforms | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Materials Processing Equipment | |||||||||||||||||||||||||||||||||||||||||||||||
Specialty Equipment | |||||||||||||||||||||||||||||||||||||||||||||||
Utility Equipment | |||||||||||||||||||||||||||||||||||||||||||||||
Other (1) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ |
(in millions, except per share data) | Three Months Ended March 31, | ||||||||||
2024 | 2023 | ||||||||||
Income (loss) from continuing operations | $ | $ | |||||||||
Gain (loss) on disposition of discontinued operations – net of tax | |||||||||||
Net income (loss) | $ | $ | |||||||||
Basic shares: | |||||||||||
Weighted average shares outstanding | |||||||||||
Earnings (loss) per share – basic: | |||||||||||
Income (loss) from continuing operations | $ | $ | |||||||||
Gain (loss) on disposition of discontinued operations – net of tax | |||||||||||
Net income (loss) | $ | $ | |||||||||
Diluted shares: | |||||||||||
Weighted average shares outstanding – basic | |||||||||||
Effect of dilutive securities: | |||||||||||
Restricted stock | |||||||||||
Diluted weighted average shares outstanding | |||||||||||
Earnings (loss) per share – diluted: | |||||||||||
Income (loss) from continuing operations | $ | $ | |||||||||
Gain (loss) on disposition of discontinued operations – net of tax | |||||||||||
Net income (loss) | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Finished equipment | $ | $ | |||||||||
Replacement parts | |||||||||||
Work-in-process | |||||||||||
Raw materials and supplies | |||||||||||
Inventories | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Property | $ | $ | |||||||||
Plant | |||||||||||
Equipment | |||||||||||
Leasehold improvements | |||||||||||
Construction in progress | |||||||||||
Property, plant and equipment – gross | |||||||||||
Less: Accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment – net | $ | $ |
MP | AWP | Total | |||||||||||||||
Balance at December 31, 2023, gross | $ | $ | $ | ||||||||||||||
Accumulated impairment | ( | ( | ( | ||||||||||||||
Balance at December 31, 2023, net | |||||||||||||||||
Foreign exchange effect and other | ( | ( | ( | ||||||||||||||
Balance at March 31, 2024, gross | |||||||||||||||||
Accumulated impairment | ( | ( | ( | ||||||||||||||
Balance at March 31, 2024, net | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
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 | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Customer Relationships | ( | ( | |||||||||||||||||||||||||||||||||||||||
Land Use Rights | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total definite-lived intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended March 31, | ||||||||||||||
(in millions) | 2024 | 2023 | ||||||||||||
Aggregate Amortization Expense | $ | $ |
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||
Instrument (1) | Balance Sheet Account | Derivatives designated as hedges | Derivatives not designated as hedges | Derivatives designated as hedges | Derivatives not designated as hedges | |||||||||||||||
Foreign exchange contracts | Other current assets | $ | $ | $ | $ | |||||||||||||||
Cross currency swaps - net investment hedge | Other current assets | |||||||||||||||||||
Commodity swaps | Other current assets | |||||||||||||||||||
Cross currency swaps - net investment hedge | Other non-current assets | |||||||||||||||||||
Foreign exchange contracts | Other current liabilities | ( | ( | |||||||||||||||||
Cross currency swaps - net investment hedge | Other current liabilities | ( | ( | |||||||||||||||||
Commodity swaps | Other current liabilities | ( | ( | |||||||||||||||||
Cross currency swaps - net investment hedge | Other non-current liabilities | ( | ( | |||||||||||||||||
Net derivative asset (liability) | $ | ( | $ | ( | $ | ( | $ |
Gain (Loss) Recognized on Derivatives in OCI, net of tax | Gain (Loss) Reclassified from AOCI into Income (Loss) | ||||||||||||||||
Instrument | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Income Statement Account | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||
Foreign exchange contracts | $ | $ | ( | Cost of goods sold | $ | $ | |||||||||||
Commodity swaps | ( | Cost of goods sold | ( | ( | |||||||||||||
Cross currency swaps - net investment hedge | ( | Selling, general and administrative expenses | |||||||||||||||
Total | $ | $ | Total | $ | ( | $ | ( |
Classification and amount of Gain (Loss) Recognized in Income (Loss) | |||||||||||||||||
Cost of goods sold | Interest expense | ||||||||||||||||
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||
Income Statement Accounts in which effects of cash flow hedges are recorded | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||
Gain (loss) reclassified from AOCI into Income (loss): | |||||||||||||||||
Commodity swaps | ( | ( | |||||||||||||||
Amount excluded from effectiveness testing recognized in Income (loss) based on amortization approach: | |||||||||||||||||
Cross currency swaps - net investment hedge | |||||||||||||||||
Total | $ | ( | $ | ( | $ | $ |
Gain (Loss) Recognized in Income (Loss) | |||||||||||
Three Months Ended March 31, | |||||||||||
Instrument | Income Statement Account | 2024 | 2023 | ||||||||
Foreign exchange contracts | Cost of goods sold | $ | ( | $ | ( | ||||||
Foreign exchange contracts | Other income (expense) – net | ( | |||||||||
Total | $ | ( | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||
$400 Million Facility | $ | $ | ||||||||||||
$300 Million Facility | ||||||||||||||
Bilateral Arrangements | ||||||||||||||
Total | $ | $ |
Book Value | Quote | Fair Value | |||||||||||||||
5% Notes | $ | $ | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
U.S. Pension | Non-U.S. Pension | Other | U.S. Pension | Non-U.S. Pension | Other | ||||||||||||||||||||||||||||||
Components of net periodic cost: | |||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of actuarial (gain) loss | |||||||||||||||||||||||||||||||||||
Net periodic cost | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||
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 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Grant date | |||||
March 15, 2024 | |||||
Dividend yields | % | ||||
Expected volatility | % | ||||
Risk free interest rate | % | ||||
Expected life (in years) |
Three Months Ended March 31 | Total Number of Shares Repurchased | Amount of Shares Repurchased (in millions) | ||||||
2024 | $ | |||||||
2023 | $ |
Year | First Quarter | ||||
2024 | $ | ||||
2023 | $ |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Mar '24 | Dec '23 | Sep '23 | Jun '23 | Mar '23 | |||||||||||||
Annualized effective tax rate as adjusted(1) | 19.8 | % | 18.2 | % | 18.2 | % | 18.2 | % | |||||||||
Income (loss) from operations | $ | 158.3 | $ | 115.7 | $ | 163.2 | $ | 209.9 | |||||||||
Multiplied by: 1 minus annualized effective tax rate | 80.2 | % | 81.8 | % | 81.8 | % | 81.8 | % | |||||||||
Net operating income (loss) after tax | $ | 127.0 | $ | 94.6 | $ | 133.5 | $ | 171.7 | |||||||||
Debt | $ | 724.1 | $ | 623.2 | $ | 708.7 | $ | 736.7 | $ | 777.0 | |||||||
Less: Cash and cash equivalents | (364.9) | (370.7) | (352.3) | (297.7) | (254.2) | ||||||||||||
Debt less Cash and cash equivalents | 359.2 | 252.5 | 356.4 | 439.0 | 522.8 | ||||||||||||
Stockholders’ equity | 1,731.9 | 1,672.3 | 1,496.2 | 1,432.2 | 1,294.6 | ||||||||||||
Debt less Cash and cash equivalents plus Stockholders’ equity | $ | 2,091.1 | $ | 1,924.8 | $ | 1,852.6 | $ | 1,871.2 | $ | 1,817.4 | |||||||
March 31, 2024 ROIC | 27.6 | % | |||
NOPAT as adjusted (last 4 quarters) | $ | 526.8 | |||
Average Debt less Cash and cash equivalents plus Stockholders’ equity (5 quarters) | $ | 1,911.4 |
Three Months Ended March 31, 2024 | Income (loss) from continuing operations before income taxes | (Provision for) benefit from income taxes | Income tax rate | ||||||||
Reconciliation of annualized effective tax rate: | |||||||||||
As reported | $ | 136.5 | $ | (28.0) | 20.5 | % | |||||
Effect of adjustments: | |||||||||||
Tax related to full-year effective tax rate expectation | — | (2.0) | |||||||||
Tax related to Swiss deferred tax asset | — | 3.0 | |||||||||
As adjusted | $ | 136.5 | $ | (27.0) | 19.8 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | |||||||||||||||||||||||||||
($ amounts in millions) | |||||||||||||||||||||||||||||
Net sales | $ | 1,292.5 | — | $ | 1,235.7 | — | 4.6 | % | |||||||||||||||||||||
Gross profit | 297.3 | 23.0 | % | 278.7 | 22.6 | % | 6.7 | % | |||||||||||||||||||||
SG&A expenses | 139.0 | 10.8 | % | 131.0 | 10.6 | % | 6.1 | % | |||||||||||||||||||||
Income from operations | 158.3 | 12.2 | % | 147.7 | 12.0 | % | 7.2 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | |||||||||||||||||||||||||||
($ amounts in millions) | |||||||||||||||||||||||||||||
Net sales | $ | 520.0 | — | $ | 553.8 | — | (6.1) | % | |||||||||||||||||||||
Income from operations | 72.1 | 13.9 | % | 85.3 | 15.4 | % | (15.5) | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | |||||||||||||||||||||||||||
($ amounts in millions) | |||||||||||||||||||||||||||||
Net sales | $ | 772.7 | — | $ | 685.9 | — | 12.7 | % | |||||||||||||||||||||
Income from operations | 107.3 | 13.9 | % | 83.1 | 12.1 | % | 29.1 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||
% of Sales | % of Sales | % Change In Reported Amounts | |||||||||||||||||||||||||||
($ amounts in millions) | |||||||||||||||||||||||||||||
Net sales | $ | (0.2) | — | $ | (4.0) | — | * | ||||||||||||||||||||||
Loss from operations | (21.1) | * | (20.7) | * | (1.9) | % |
Three Months Ended 3/31/2024 | |||||||||||
Net cash provided by (used in) operating activities | $ | (33.9) | |||||||||
Capital expenditures, net of proceeds from sale of capital assets | (35.0) | ||||||||||
Free cash flow (use) | $ | (68.9) | |||||||||
Three Months Ended March 31, 2024 | |||||
Net sales | $ | 1,292.5 | |||
x | 4 | ||||
Trailing three month annualized net sales | $ | 5,170.0 |
As of March 31, 2024 | |||||
Inventories | $ | 1,217.6 | |||
Receivables | 685.3 | ||||
Trade accounts payable | (699.3) | ||||
Customer advances | (30.3) | ||||
Working capital | $ | 1,173.3 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (in thousands) (2) | ||||||||||||||||||||||
January 1, 2024 - January 31, 2024 | 1,354 | $57.86 | — | $132,050 | ||||||||||||||||||||||
February 1, 2024 - February 29, 2024 | 13,350 | $54.23 | 12,344 | $131,388 | ||||||||||||||||||||||
March 1, 2024 - March 31, 2024 | 37,199 | $58.81 | 33,993 | $129,388 | ||||||||||||||||||||||
Total | 51,903 | $57.61 | 46,337 | $129,388 |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit No. | Exhibit | ||||
31.1 | |||||
31.2 | |||||
32 | |||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | XBRL Taxonomy Extension Schema Document. * | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. * | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. * | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. * | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. * | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | ||||
* | Exhibit filed with this document. | ||||
** | Exhibit furnished with this document. | ||||
Date: | April 26, 2024 | /s/ Julie A. Beck | ||||||
Julie A. Beck | ||||||||
Senior Vice President and Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: | April 26, 2024 | /s/ Stephen A. Johnston | ||||||
Stephen A. Johnston | ||||||||
Vice President, Chief Accounting Officer and Controller | ||||||||
(Principal Accounting Officer) |
/s/ Simon A. Meester | |||||
Simon A. Meester | |||||
President, Chief Executive Officer and Director | |||||
April 26, 2024 |
/s/ Julie A. Beck | |||||
Julie A. Beck | |||||
Senior Vice President and | |||||
Chief Financial Officer | |||||
April 26, 2024 |
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CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Current assets | ||
Trade receivables, allowance (in dollars) | $ 9.1 | $ 8.3 |
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common authorized (in shares) | 300,000,000.0 | 300,000,000.0 |
Common issued (in shares) | 85,100,000 | 84,600,000 |
Treasury Stock (in shares) | 18,500,000 | 18,500,000 |
BASIS OF PRESENTATION |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation and Principles of Consolidation. The accompanying unaudited Condensed Consolidated Financial Statements of Terex Corporation and subsidiaries as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP to be included in full-year financial statements. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2023 has been derived from audited consolidated financial statements as of that date, but does not include all disclosures required by U.S. GAAP. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for year ended December 31, 2023. The Condensed Consolidated Financial Statements include 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 equity method of accounting for investments in which the Company is able to exercise significant influence and applies the cost method for investments which do not have readily determinable fair values. All intercompany balances, transactions and profits have been eliminated. Certain prior period amounts have been reclassified to conform with the 2024 presentation. In the opinion of management, adjustments considered necessary for the fair statement 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 months ended March 31, 2024 are not necessarily indicative of results that may be expected for the year ending December 31, 2024. Accounting Standards to be Implemented. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires additional segment reporting disclosures, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires that companies disclose, at the reportable segment level, the significant segment expenses regularly provided to the chief operating decision maker (“CODM”), as well as the amount and composition of other segment items. The ASU also requires companies to disclose the title and position of the CODM and how the CODM uses the reported measures of a segment’s profit or loss when assessing performance and deciding how to allocate resources. Additionally, the ASU mandates that all segment disclosures currently required annually by Topic 280, including the enhancements outlined in the ASU, be disclosed on an interim basis. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this guidance on its disclosures to consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure in the rate reconciliation table additional categories of information about federal, state and foreign income taxes and provide more details about the reconciliation items in some categories if the items meet a quantitative threshold. The guidance also requires disclosure of income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold. The guidance is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this guidance on its disclosures to consolidated financial statements. Receivables and Allowance for Doubtful Accounts. Receivables include $633.5 million and $493.8 million of trade accounts receivable at March 31, 2024 and December 31, 2023, respectively. Trade accounts receivable are recorded at invoiced amount and do not bear interest. Allowance for doubtful accounts is the Company’s estimate of current expected credit losses on its existing accounts receivable and determined based on historical customer assessments, current financial conditions, and reasonable and supportable forecasts. Account balances are charged off against the allowance when the Company determines the receivable will not be recovered. There can be no assurance that the Company’s estimate of accounts receivable collection will be indicative of future results. The following table summarizes changes in the consolidated allowance for doubtful accounts (in millions):
Supplier Finance. The Company has a supplier finance program to pay a third-party bank the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. Terex or the bank may terminate the agreement upon 30 days’ notice. The supplier invoices that have been confirmed as valid under the program require payment in full within 60-90 days of invoice date. There is no confirmed obligation outstanding at March 31, 2024 and December 31, 2023, respectively. Guarantees. The Company issues guarantees to financial institutions related to financing of equipment purchases by customers. The expectation of losses or non-performance is evaluated based on consideration of historical customer assessments, current financial conditions, reasonable and supportable forecasts, equipment collateral value and other factors. Reserves are recorded for expected loss over the contractual period of risk exposure. See Note K – “Litigation and Contingencies” for additional information regarding guarantees issued to financial institutions. Accrued Warranties. The Company records accruals for potential warranty claims based on its claim 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 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 current portion of the product warranty liability is included in Other current liabilities and the non-current portion is included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheet. The liability is established using historical warranty claims experience for each product sold. Historical claims experience may be adjusted for known design improvements or for the impact of unusual product quality issues. Assumptions are updated for known events that may affect the potential warranty liability. The following table summarizes changes in the consolidated 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 commodity swaps, cross currency swaps and foreign exchange contracts discussed in Note H – “Derivative Financial Instruments” and debt discussed in Note I – “Long-Term Obligations”. These instruments are valued using observable market data for similar assets and liabilities or the present value of future cash payments and receipts. 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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BUSINESS SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Terex is a global manufacturer of materials processing machinery and aerial work platforms. The Company designs, builds and supports products used in maintenance, manufacturing, energy, recycling, minerals and materials management, and construction applications. Certain Terex products and solutions enable customers to reduce their impact on the environment including electric and hybrid offerings that deliver quiet and emission-free performance, products that support renewable energy, and products that aid in the recovery of useful materials from various types of waste. The Company’s products are manufactured in North America, Europe, Australia and Asia and sold worldwide. Terex engages with customers through all stages of the product life cycle, from initial specification to parts and service support. The Company identifies its operating segments according to how business activities are managed and evaluated, and has identified three operating segments: Materials Processing (“MP”), Aerials and Utilities. As Aerials and Utilities operating segments share similar economic characteristics, these operating segments are aggregated into one reportable segment, Aerial Work Platforms (“AWP”). The Company operates in two reportable segments: (i) MP and (ii) AWP. MP designs, manufactures, services and markets materials processing and specialty equipment, including crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, 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, maintenance applications to lift equipment or material, moving materials and equipment on rugged or uneven terrain, lifting construction material and placing material at point of use. AWP designs, manufactures, services and markets aerial work platform equipment, utility equipment and telehandlers as well as their related components and replacement parts. Customers use these products to construct and maintain industrial, commercial, institutional and residential buildings and facilities, for construction and maintenance of transmission and distribution lines, tree trimming, certain construction and foundation drilling applications, and for other commercial operations, as well as in a wide range of infrastructure projects. 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 facilitate financial products and services to assist customers in the acquisition of the Company’s equipment. TFS is included in Corporate and Other. Corporate and Other also includes eliminations among the two reportable segments, as well as general and corporate items. Business segment information is presented below (in millions):
Sales between segments are generally priced to recover costs plus a reasonable markup for profit, which is eliminated in consolidation. Geographic net sales information is presented below (in millions):
(1) Includes intercompany sales and eliminations. (2) Total sales include $732.5 million and $628.8 million for the three months ended March 31, 2024 and 2023, respectively, attributable to the U.S., the Company’s country of domicile. The Company attributes sales to unaffiliated customers in different geographical areas based on the location of the customer. Product type net sales information is presented below (in millions):
(1) Includes other product types, intercompany sales and eliminations. |
INCOME TAXES |
3 Months Ended |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES During the three months ended March 31, 2024, the Company recognized income tax expense of $28.0 million on income of $136.5 million, an effective tax rate of 20.5%, as compared to income tax expense of $23.3 million on income of $133.2 million, an effective tax rate of 17.5%, for the three months ended March 31, 2023. The higher effective tax rate for the three months ended March 31, 2024 when compared with the three months ended March 31, 2023 is primarily due to higher tax related to geographic distribution of income and lower favorable discrete items. On December 15, 2022, the European Union (“EU”) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15% for large corporations, as established by the Organization for Economic Co-operation and Development (“OECD”) Pillar Two Framework. A number of countries in which we operate have adopted legislation, many of which are effective in 2024 subject to the OECD transitional safe harbor rules, while other countries are still in the process of introducing legislation. The Company has determined the impact of enacted Pillar Two legislation on its financial statements is not material. The Company will continue to evaluate the financial statement impacts as additional Pillar Two rules are enacted.
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EARNINGS PER SHARE | EARNINGS PER SHARE
Non-vested restricted stock awards and restricted stock units (“Restricted Stock”) granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share using the treasury stock method. Weighted average Restricted Stock of approximately 0.3 million and 0.1 million were outstanding during the three months ended March 31, 2024 and 2023, respectively, but were not included in the computation of diluted shares as the effect would be anti-dilutive or performance targets were not expected to be achieved for awards contingent upon performance.
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INVENTORIES |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consist of the following (in millions):
Inventory reserves were $70.1 million and $70.5 million at March 31, 2024 and December 31, 2023, respectively.
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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 |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS An analysis of changes in the Company’s goodwill by business segment is as follows (in millions):
Intangible assets, net were comprised of the following (in millions):
Estimated aggregate intangible asset amortization expense for each of the next five years is as follows (in millions):
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DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company operates internationally, with manufacturing and sales facilities in various locations around the world. In the normal course of business, the Company uses derivatives to manage commodity, currency and interest rate exposures. For a derivative to qualify for hedge accounting treatment 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 methods 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. The Company does not engage in trading or other speculative use of financial instruments. The Company records all derivative contracts at fair value on a recurring basis. Commodity Swaps Derivatives designated as cash flow hedging instruments include commodity swaps with outstanding notional value of $16.8 million and $22.2 million at March 31, 2024 and December 31, 2023, respectively. Commodity swaps outstanding at March 31, 2024 mature on or before August 31, 2025. The Company uses commodity swaps to mitigate price risk for hot rolled coil steel. Fair value of commodity swaps are based on observable market data for similar assets and liabilities. Changes in the fair value of commodity swaps are deferred in Accumulated other comprehensive income (loss) (“AOCI”). Gains or losses on commodity swaps are reclassified to Cost of goods sold (“COGS”) in the Condensed Consolidated Statement of Comprehensive Income (Loss) when the hedged transaction affects earnings. Cross Currency Swaps Derivatives designated as net investment hedging instruments include cross currency swaps with outstanding notional value of $248.7 million and $250.0 million at March 31, 2024 and December 31, 2023, respectively. The Company uses these cross currency swaps to mitigate its exposure to changes in foreign currency exchange rates related to a net investment in a Euro-denominated functional currency subsidiary. Fair values of cross currency swaps are based on the present value of future cash payments and receipts. Changes in the fair value of cross currency swaps are deferred in AOCI. Gains or losses on cross currency swaps are reclassified to Selling, general and administrative expenses in the Condensed Consolidated Statement of Comprehensive Income (Loss) when the net investment is liquidated. Foreign Exchange Contracts The Company enters into foreign exchange contracts to manage variability of future cash flows associated with changing currency exchange rates. Foreign currency exchange contracts, whether designated or not designated as cash flow hedges, are used to mitigate exposure to changes in foreign currency exchange rates on recognized assets and liabilities or forecasted transactions. Fair values of these contracts are derived using quoted forward foreign exchange prices to interpolate values of outstanding trades at the reporting date based on their maturities. Foreign exchange contracts outstanding at March 31, 2024 mature on or before June 21, 2024. The Company had $1.6 million and $4.6 million notional value of foreign exchange contracts outstanding that were designated as cash flow hedging instruments at March 31, 2024 and December 31, 2023, respectively. For effective hedging instruments, changes in the fair value of foreign exchange contracts are deferred in AOCI until the hedged transactions affect earnings. Gains or losses on foreign exchange contracts are reclassified to COGS in the Condensed Consolidated Statement of Comprehensive Income (Loss). The Company had $199.9 million and $300.1 million notional value of foreign exchange contracts outstanding that were not designated as cash flow hedging instruments at March 31, 2024 and December 31, 2023, respectively. The majority of gains and losses recognized from foreign exchange contracts not designated as hedging instruments are offset by changes in the underlying exposures the contracts are intended to mitigate, 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 COGS and Other income (expense) – net in the Condensed Consolidated Statement of Comprehensive Income (Loss). The following table provides the location and fair value amounts of derivative instruments designated and not designated as hedging instruments that are reported in the Condensed Consolidated Balance Sheet (in millions):
(1) Categorized as Level 2 under the ASC 820 Fair Value Hierarchy. The following tables provide the effect of derivative instruments that are designated as hedges in AOCI (in millions):
The following tables provide the effect of derivative instruments that are designated as hedges in the Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions):
Derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. The following table provides the effect of non-designated derivatives in the Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions):
In the Condensed Consolidated Statement of Comprehensive Income (Loss), the Company records hedging activity related to commodity swaps, cross currency swaps and foreign exchange contracts in the accounts for which the hedged items are recorded. On the Condensed Consolidated Statement of Cash Flows, the Company presents cash flows from hedging activities in the same manner as it records the underlying item being hedged. Counterparties to the Company’s derivative financial instruments are major financial institutions and commodity trading companies 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. See Note L - “Stockholders’ Equity” for unrealized net gains (losses), net of tax, included in AOCI. Within unrealized net gains (losses) included in AOCI as of March 31, 2024, it is estimated that approximately $1 million of losses are expected to be reclassified into earnings in the next twelve months.
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LONG-TERM OBLIGATIONS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM OBLIGATIONS | LONG-TERM OBLIGATIONS Credit Agreement On January 31, 2017, the Company entered into a credit agreement with the lenders and issuing banks party thereto and Credit Suisse AG, Cayman Islands Branch (“CSAG”), as administrative agent and collateral agent, to provide the Company with a multi-currency revolving line of credit and senior secured term loans. This was subsequently amended to include (i) a $600 million revolving line of credit (the “Revolver”) and (ii) senior secured term loans totaling $600 million with a maturity date of January 31, 2024. On April 1, 2021, the Company entered into an amendment and restatement of the credit agreement (as amended and restated, the “Credit Agreement”) which included the following principal changes to the original credit agreement: (i) extension of the term of the Revolver to expire on April 1, 2026, (ii) reinstatement of financial covenants that were waived in 2020, (iii) decrease in the interest rate on the drawn Revolver by 25 basis points and (iv) certain other technical changes, including additional language regarding the potential cessation of LIBOR as a benchmark rate. In 2022, the Company completed the prepayment in full of the senior secured term loans. On May 8, 2023, the Company and certain of its subsidiaries entered into an Amendment No. 1 (“Amendment”) to the Credit Agreement, with the lenders and issuing banks party thereto and CSAG. The principal changes contained in the Amendment relate to the replacement of the adjusted LIBOR with term Secured Overnight Financing Rate. The Credit Agreement contemplates uncommitted incremental amounts in excess of $300 million that may be extended by the lenders, at their option, as long as the Company satisfies the maximum permitted level of senior secured leverage as defined in the Credit Agreement. The Credit Agreement requires the Company to comply with a number of covenants which 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. If the Company’s borrowings under the Revolver are greater than 30% of the total revolving credit commitments, the Credit Agreement requires the Company to comply with the following financial tests: (i) minimum required level of the interest coverage ratio of 2.5 to 1.0 and (ii) maximum permitted level of the senior secured leverage ratio of 2.75 to 1.0. The Credit Agreement also contains customary default provisions. The Company was in compliance with all covenants contained in the Credit Agreement as of March 31, 2024. The Company had $99.1 million and no Revolver amounts outstanding at March 31, 2024 and December 31, 2023, respectively. The weighted average interest rate on the Revolver was 6.67% at March 31, 2024. The Company obtains letters of credit that generally serve as collateral for certain liabilities included in the Condensed Consolidated Balance Sheet and guaranteeing the Company’s performance under contracts. Letters of credit can be issued under two facilities provided in the Credit Agreement and via bilateral arrangements outside the Credit Agreement. The Credit Agreement incorporates secured facilities for issuance of letters of credit up to $400 million (the “$400 Million Facility”). Letters of credit issued under the $400 Million Facility decrease availability under the Revolver. The Credit Agreement also permits the Company to have additional secured facilities for the issuance of letters of credit up to $300 million (the “$300 Million Facility”). Letters of credit issued under the $300 Million Facility do not decrease availability under the Revolver. The Company also has bilateral arrangements to issue letters of credit with various other financial institutions (the “Bilateral Arrangements”). The Bilateral Arrangements are not secured under the Credit Agreement and do not decrease availability under the Revolver. Letters of credit outstanding (in millions):
On January 31, 2017, the Company entered into a Guarantee and Collateral Agreement with CSAG, as collateral agent for the lenders, granting security and guarantees to the lenders for amounts borrowed under the Credit Agreement. Pursuant to the Guarantee and Collateral Agreement, Terex 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 substantially all of the Company’s domestic assets. On December 29, 2022, the Company entered into an amendment to the Guarantee and Collateral Agreement which included the following principal changes to the original agreement: (i) enabling a subsidiary to enter into hedging derivatives with external counterparties and (ii) inclusion of Terex subsidiary entities’ cash management services provided by lending banks to be secured under the Guarantee and Collateral Agreement. 5% Senior Notes In Apri1 2021, the Company sold and issued $600.0 million aggregate principal amount of Senior Notes Due 2029 (“5% Notes”) at par in a private offering. The proceeds from the 5% Notes, together with cash on hand, was used: (i) to fund redemption and discharge of 5-5/8% Senior Notes and (ii) to pay related premiums, fees, discounts and expenses. The 5% Notes are jointly and severally guaranteed by certain of the Company’s domestic subsidiaries. Secured Borrowings In October 2023, the Company entered into a Framework Agreement to transfer value added tax (“VAT”) receivables to a financial institution in exchange for cash in advance. This arrangement was accounted for as a secured borrowing with a pledge of collateral as the transfer does not meet the criteria for sale accounting. As a result, the VAT receivables pledged as collateral remain in receivables and the liability associated with the cash proceeds of $18.6 million and $19.0 million are presented in long term debt in the Condensed Consolidated Balance Sheet as of March 31, 2024 and December 31, 2023, respectively. The long term debt classification is based on estimated timing of VAT refund from the Italian government which is expected to be greater than 12 months. Fair Value of Debt The Company estimates the fair value of its debt set forth below as of March 31, 2024, as follows (in millions, except for quotes):
The fair value of debt reported in the table above is based on adjusted price quotations on the debt instruments in an inactive market. The Company believes that the carrying value of its other borrowings, including amounts outstanding, if any, for the revolving credit line under the Credit Agreement, approximate fair market value based on maturities for debt of similar terms. Fair values of debt reported in the table above are categorized under Level 2 of the ASC 820 hierarchy. See Note A – “Basis of Presentation” for an explanation of ASC 820 hierarchy.
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RETIREMENT PLANS AND OTHER BENEFITS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT PLANS AND OTHER BENEFITS | RETIREMENT PLANS AND OTHER BENEFITS The Company maintains defined benefit plans in France, Germany, India, Switzerland and the United Kingdom for some of its subsidiaries, as well as a nonqualified Supplemental Executive Retirement Plan in the U.S. (“U.S. SERP”). In Italy and Mexico, there are mandatory termination indemnity plans providing a benefit that is payable upon termination of employment in substantially all cases of termination. The Company has several non-pension post-retirement benefit programs, including health and life insurance benefits to certain former salaried and hourly employees. Information regarding the Company’s plans, including the U.S. SERP, is as follows (in millions):
Components of Net periodic cost other than the Service cost component are included in Other income (expense) - net in the Condensed Consolidated Statement of Comprehensive Income (Loss). The Service cost component is included in the same line item or items as other compensation costs arising from services rendered by pertinent employees during the period.
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LITIGATION AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2024 | |
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, intellectual property and tax 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 risks 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 condensed consolidated financial statements. 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. Terex Latin América Equipamentos Ltda ICMS Proceedings Terex Latin America Equipamentos Ltda (“TLA”) imports Terex products into Brazil through the state of Espirito Santo to its facility in Sao Paulo. For the 2004 through March 2009 period, TLA used a third-party trading company, SAB, as an agent to process the importation of Terex products. TLA properly paid the Espirito Santo ICMS tax (Brazilian state value-added tax) to SAB for payment to Espirito Santo, which would produce an ICMS credit to be used against imposition of Sao Paolo ICMS tax. SAB went into bankruptcy and may not have actually remitted to Espirito Santo the ICMS tax amounts paid to it by TLA. The Brazilian state of Sao Paulo challenged the credit against Sao Paolo ICMS that TLA claimed and assessed unpaid ICMS tax, penalties and related interest in the amount of approximately BRL 115 million ($23 million). TLA challenged the claim of Sao Paulo and learned in October 2019 that the Sao Paulo claim has survived the administrative tribunal process. While the Company continues to strongly oppose the state of Sao Paulo and plans to assert vigorous defenses, no assurance can be given as to the final resolution of the ICMS litigation or that TLA will not ultimately be required to pay the ICMS tax and interest to the state of Sao Paulo. 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. Credit Guarantees The Company may assist customers in their rental, leasing and acquisition of its products by facilitating financing transactions directly between (i) end-user customers, distributors and rental companies and (ii) third-party financial institutions, providing recourse in certain circumstances. The current amount of the maximum liability is generally limited to our customer’s remaining payments due to the third-party financial institutions at the time of default; however, it cannot be reasonably estimated due to limited availability of the unique facts and circumstances of each arrangement, such as whether changes have been made to the structure of the contractual obligation between the funder and customer. For credit guarantees outstanding as of March 31, 2024 and December 31, 2023, the maximum exposure determined was $84.3 million and $89.4 million, respectively. Terms of these guarantees coincide with the financing arranged by the customer and generally do not exceed five years. The allowance for credit losses on credit guarantees was $5.2 million and $5.3 million at March 31, 2024 and December 31, 2023, respectively. There can be no assurance that 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.
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STOCKHOLDERS' EQUITY |
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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 months ended March 31, 2024 and 2023. All amounts are net of tax (in millions).
Stock-Based Compensation During the three months ended March 31, 2024, the Company awarded 0.5 million shares of Restricted Stock to its employees with a weighted average fair value of $60.12 per share. Approximately 61% of these awards are time-based and vest ratably on each of the first three anniversary dates of the grants. Approximately 27% 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 12% cliff vest and are based on performance targets containing a market condition determined over a three-year period. Fair value of time-based awards is based on the market price of our common stock at the date of grant approval. The fair value of performance-based awards, except for awards based on a market condition, is based on the market price of our common stock at the date of grant approval, except fair values are multiplied by the probability of achievement as of the period-end date. For awards based on a market condition, fair value is based on the Monte Carlo method at grant date. The Monte Carlo method is a statistical simulation technique used to provide the grant date fair value of an award. The Company used the Monte Carlo method to determine grant date fair value of $67.70 per share for awards with a market condition granted on March 15, 2024. The following table presents the weighted-average assumptions used in the valuations:
Share Repurchases In July 2018, Terex’s Board of Directors (“Board”) authorized the repurchase of up to $300 million of the Company’s outstanding shares of common stock. In December 2022, Terex’s Board authorized the repurchase of up to $150 million of the Company’s outstanding shares of common stock. The table below presents shares repurchased, inclusive of transactions executed but not settled, by the Company under these programs.
Dividends The table below presents dividends declared by Terex’s Board and paid to the Company’s shareholders:
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 108.5 | $ 112.6 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Terex Corporation and subsidiaries as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP to be included in full-year financial statements. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2023 has been derived from audited consolidated financial statements as of that date, but does not include all disclosures required by U.S. GAAP. |
Principals of Consolidation | The Condensed Consolidated Financial Statements include 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 equity method of accounting for investments in which the Company is able to exercise significant influence and applies the cost method for investments which do not have readily determinable fair values. All intercompany balances, transactions and profits have been eliminated. |
Reclassification policy | Certain prior period amounts have been reclassified to conform with the 2024 presentation. |
Accounting Standards to be Implemented | Accounting Standards to be Implemented. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires additional segment reporting disclosures, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires that companies disclose, at the reportable segment level, the significant segment expenses regularly provided to the chief operating decision maker (“CODM”), as well as the amount and composition of other segment items. The ASU also requires companies to disclose the title and position of the CODM and how the CODM uses the reported measures of a segment’s profit or loss when assessing performance and deciding how to allocate resources. Additionally, the ASU mandates that all segment disclosures currently required annually by Topic 280, including the enhancements outlined in the ASU, be disclosed on an interim basis. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this guidance on its disclosures to consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure in the rate reconciliation table additional categories of information about federal, state and foreign income taxes and provide more details about the reconciliation items in some categories if the items meet a quantitative threshold. The guidance also requires disclosure of income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold. The guidance is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this guidance on its disclosures to consolidated financial statements.
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Receivables and Allowance for Doubtful Accounts | Receivables and Allowance for Doubtful Accounts. Receivables include $633.5 million and $493.8 million of trade accounts receivable at March 31, 2024 and December 31, 2023, respectively. Trade accounts receivable are recorded at invoiced amount and do not bear interest. Allowance for doubtful accounts is the Company’s estimate of current expected credit losses on its existing accounts receivable and determined based on historical customer assessments, current financial conditions, and reasonable and supportable forecasts. Account balances are charged off against the allowance when the Company determines the receivable will not be recovered. There can be no assurance that the Company’s estimate of accounts receivable collection will be indicative of future results.
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Guarantees | Guarantees. The Company issues guarantees to financial institutions related to financing of equipment purchases by customers. The expectation of losses or non-performance is evaluated based on consideration of historical customer assessments, current financial conditions, reasonable and supportable forecasts, equipment collateral value and other factors. Reserves are recorded for expected loss over the contractual period of risk exposure. See Note K – “Litigation and Contingencies” for additional information regarding guarantees issued to financial institutions.
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Accrued Warranties | Accrued Warranties. The Company records accruals for potential warranty claims based on its claim 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 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 current portion of the product warranty liability is included in Other current liabilities and the non-current portion is included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheet. The liability is established using historical warranty claims experience for each product sold. Historical claims experience may be adjusted for known design improvements or for the impact of unusual product quality issues. Assumptions are updated for known events that may affect the potential warranty liability.
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Fair Value Measurements | 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 commodity swaps, cross currency swaps and foreign exchange contracts discussed in Note H – “Derivative Financial Instruments” and debt discussed in Note I – “Long-Term Obligations”. These instruments are valued using observable market data for similar assets and liabilities or the present value of future cash payments and receipts. 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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Supplier Finance Program, Policy | Supplier Finance. The Company has a supplier finance program to pay a third-party bank the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. Terex or the bank may terminate the agreement upon 30 days’ notice. The supplier invoices that have been confirmed as valid under the program require payment in full within 60-90 days of invoice date. |
BASIS OF PRESENTATION (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | The following table summarizes changes in the consolidated allowance for doubtful accounts (in millions):
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Schedule of Product Warranty Liability | The following table summarizes changes in the consolidated product warranty liability (in millions):
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BUSINESS SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Segment Information | Business segment information is presented below (in millions):
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Reconciliation of Operating Profit (Loss) from Segments to Consolidated |
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Revenue from External Customers by Geographic Areas | Geographic net sales information is presented below (in millions):
(1) Includes intercompany sales and eliminations. (2) Total sales include $732.5 million and $628.8 million for the three months ended March 31, 2024 and 2023, respectively, attributable to the U.S., the Company’s country of domicile. |
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Revenue from External Customers by Products and Services | Product type net sales information is presented below (in millions):
(1) Includes other product types, intercompany sales and eliminations. |
EARNINGS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share |
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INVENTORIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following (in millions):
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
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Schedule of Intangible Assets by Class | Intangible assets, net were comprised of the following (in millions):
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Finite-lived Intangible Assets Amortization Expense |
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Schedule of Intangible Assets Amortization Expense | Estimated aggregate intangible asset amortization expense for each of the next five years is as follows (in millions):
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 and not designated as hedging instruments that are reported in the Condensed Consolidated Balance Sheet (in millions):
(1) Categorized as Level 2 under the ASC 820 Fair Value Hierarchy.
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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 AOCI (in millions):
The following tables provide the effect of derivative instruments that are designated as hedges in the Condensed Consolidated Statement of Comprehensive Income (Loss) (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 | Derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. The following table provides the effect of non-designated derivatives in the Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions):
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LONG-TERM OBLIGATIONS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Letters of credit outstanding (in millions):
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Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The Company estimates the fair value of its debt set forth below as of March 31, 2024, as follows (in millions, except for quotes):
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RETIREMENT PLANS AND OTHER BENEFITS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Cost | Information regarding the Company’s plans, including the U.S. SERP, is as follows (in millions):
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STOCKHOLDERS' EQUITY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents changes in AOCI by component for the three months ended March 31, 2024 and 2023. 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 valuations:
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Schedule of Repurchase Agreements | The table below presents shares repurchased, inclusive of transactions executed but not settled, by the Company under these programs.
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Dividends Declared | The table below presents dividends declared by Terex’s Board and paid to the Company’s shareholders:
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BASIS OF PRESENTATION - Allowance for doubtful accounts rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 8.3 | |
Provision for credit losses | 1.1 | |
Other | (0.3) | |
Ending balance | 9.1 | |
Trade receivables | $ 685.3 | $ 547.8 |
BASIS OF PRESENTATION - Changes in Product Warranty Liability (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Changes in consolidated current and non-current product warranty liability | |
Balance as of December 31, 2023 | $ 47.8 |
Accruals for warranties issued during the period | 9.7 |
Changes in estimates | 2.6 |
Settlements during the period | (11.0) |
Foreign exchange effect/other | (0.5) |
Balance as of March 31, 2024 | $ 48.6 |
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 685.3 | $ 547.8 |
Trade Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade receivables | $ 633.5 | $ 493.8 |
BUSINESS SEGMENT INFORMATION - Additional Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
segments
| |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Number of reportable segments | 2 |
Aerials And Utilities | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
BUSINESS SEGMENT INFORMATION - Net Sales and Income (Loss) from Operations by Segment (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,292.5 | $ 1,235.7 |
Income (loss) from operations | 158.3 | 147.7 |
Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 772.7 | 685.9 |
Income (loss) from operations | 107.3 | 83.1 |
Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 520.0 | 553.8 |
Income (loss) from operations | 72.1 | 85.3 |
Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | (0.2) | (4.0) |
Income (loss) from operations | $ (21.1) | $ (20.7) |
BUSINESS SEGMENT INFORMATION - Identifiable Assets by Segment (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Assets | $ 3,759.9 | $ 3,615.5 |
Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,353.3 | 2,216.2 |
Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,029.0 | 2,091.4 |
Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Assets | $ (622.4) | $ (692.1) |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ (28.0) | $ (23.3) |
Income from continuing operations before income taxes | $ 136.5 | $ 133.2 |
Effective income tax rate, continuing operations | 20.50% | 17.50% |
INVENTORIES (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished equipment | $ 494.6 | $ 467.9 |
Replacement parts | 185.6 | 185.6 |
Work-in-process | 138.7 | 131.5 |
Raw materials and supplies | 398.7 | 401.0 |
Inventories | 1,217.6 | 1,186.0 |
Inventory reserves | $ 70.1 | $ 70.5 |
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, plant and equipment. | ||
Property, plant and equipment – gross | $ 1,008.9 | $ 995.0 |
Less: Accumulated depreciation | (435.2) | (425.2) |
Property, plant and equipment – net | 573.7 | 569.8 |
Property | ||
Property, plant and equipment. | ||
Property, plant and equipment – gross | 80.2 | 75.1 |
Plant | ||
Property, plant and equipment. | ||
Property, plant and equipment – gross | 313.1 | 302.4 |
Equipment | ||
Property, plant and equipment. | ||
Property, plant and equipment – gross | 506.4 | 492.3 |
Leasehold improvements | ||
Property, plant and equipment. | ||
Property, plant and equipment – gross | 52.1 | 51.8 |
Construction in progress | ||
Property, plant and equipment. | ||
Property, plant and equipment – gross | $ 57.1 | $ 73.4 |
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Derivative [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 1.0 | |
Derivatives designated as hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1.6 | $ 4.6 |
Derivatives designated as hedges | Cross currency swaps - net investment hedge | Net Investment Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | 248.7 | 250.0 |
Derivatives designated as hedges | Commodity swaps | ||
Derivative [Line Items] | ||
Derivative, notional amount | 16.8 | 22.2 |
Derivatives not designated as hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 199.9 | $ 300.1 |
DERIVATIVE FINANCIAL INSTRUMENTS -Effect of derivative instruments not designated as hedges on income (Details) - Derivatives not designated as hedges - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income (Loss) | $ (1.3) | $ 0.7 |
Foreign exchange contracts | Cost of goods sold | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income (Loss) | (1.2) | (0.3) |
Foreign exchange contracts | Other income (expense) – net | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Income (Loss) | $ (0.1) | $ 1.0 |
LONG-TERM OBLIGATIONS - Schedule of Letters of Credit Outstanding (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 117.8 | $ 119.9 |
$400 Million Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | 0.0 | 0.0 |
$300 Million Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | 71.0 | 71.8 |
Bilateral Arrangements | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 46.8 | $ 48.1 |
LONG-TERM OBLIGATIONS - 5% Senior Notes (Details) |
Jan. 31, 2017 |
---|---|
Senior Notes | 5-5/8% Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.625% |
LONG-TERM OBLIGATIONS - 5% Senior Notes (Details) - 5% Notes - Senior Notes |
Apr. 01, 2021
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
Face amount of debt | $ 600,000,000 |
Debt Instrument [Line Items] | |
Face amount of debt | $ 600,000,000 |
Interest rate (as a percent) | 5.00% |
LONG-TERM OBLIGATIONS - Fair Value of Debt (Details) - Medium-term Notes - Secured Debt - 5% Notes $ in Millions |
Mar. 31, 2024
USD ($)
$ / shares
|
---|---|
Debt Instrument [Line Items] | |
Book Value | $ 600.0 |
Fair Value, Inputs, Level 2 | |
Debt Instrument [Line Items] | |
Fair Value | $ 564.0 |
Measurement Input, Quoted Price | |
Debt Instrument [Line Items] | |
Quotes | $ / shares | 0.94000 |
LONG-TERM OBLIGATIONS - Secured Borrowings (Details) - Foreign Tax Authority - Italian Agency of Revenue $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
VAT Receivable | $ 18.6 |
Advance loan on income tax receivable | $ 18.6 |
RETIREMENT PLANS AND OTHER BENEFITS (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other Plans | ||
Components of net periodic cost: | ||
Service cost | $ 0.0 | $ 0.0 |
Interest cost | 0.0 | 0.0 |
Expected return on plan assets | 0.0 | 0.0 |
Amortization of actuarial (gain) loss | 0.0 | 0.0 |
Net periodic cost | 0.0 | 0.0 |
U.S. Pension | Pension Plan | ||
Components of net periodic cost: | ||
Service cost | 0.0 | 0.0 |
Interest cost | 0.4 | 0.4 |
Expected return on plan assets | 0.0 | 0.0 |
Amortization of actuarial (gain) loss | 0.0 | 0.0 |
Net periodic cost | 0.4 | 0.4 |
Non-U.S. Pension | Pension Plan | ||
Components of net periodic cost: | ||
Service cost | 0.3 | 0.2 |
Interest cost | 1.1 | 1.1 |
Expected return on plan assets | (0.9) | (0.8) |
Amortization of actuarial (gain) loss | 0.7 | 0.6 |
Net periodic cost | $ 1.2 | $ 1.1 |
LITIGATION AND CONTINGENCIES (Details) R$ in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024
BRL (R$)
|
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
Loss Contingencies and Guarantee Obligations | |||
Estimated ICMS and related interest | R$ 115 | $ 23.0 | |
Guarantee terms maximum | 5 years | ||
Allowance for credit losses on guarantees | 5.2 | $ 5.3 | |
Credit Guarantee | |||
Loss Contingencies and Guarantee Obligations | |||
Guarantees, maximum exposure | $ 84.3 | $ 89.4 |
STOCKHOLDERS' EQUITY - Share Repurchases and Dividends (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 19, 2022 |
Jul. 12, 2018 |
|
Stock repurchase program, authorized amount | $ 150,000,000 | $ 300,000,000 | ||
Treasury stock acquired, cost method | $ 3,000,000.0 | $ 4,000,000.0 | ||
Dividends declared (in dollars per share) | $ 0.17 | $ 0.15 | ||
Dividends paid (in dollars per share) | $ 0.17 | $ 0.15 | ||
Share repurchase program approved by Board of Directors | ||||
Treasury stock acquired (in shares) | 46,337 | 79,285 | ||
Treasury stock acquired, cost method | $ 2,700,000 | $ 3,700,000 |
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