Terex (TEX) 10-Q 29 Oct 09 2009 Q3 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF INCOME (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Net sales	1226.1	2514.6	3848.9	7813.2
Cost of goods sold	-1116.5	-2068.4	-3466.9	-6201.8
Gross profit	109.6	446.2	382	1611.4
Selling, general and administrative expenses	-204.1	(279)	-634.7	(817)
(Loss) income from operations	-94.5	167.2	-252.7	794.4
Other income (expense)
Interest income	1.4	4.4	3.5	18.5
Interest expense	-32.6	-26.4	-81.4	-76.2
Loss on early extinguishment of debt			-3.3
Other income (expense) - net	-1.2	-5.8		4
(Loss) income before income taxes	-126.9	139.4	-333.9	740.7
Benefit from (provision for) income taxes	24.5	-44.9	79.3	-244.9
Net (loss) income	-102.4	94.5	-254.6	495.8
Less: Net income attributable to noncontrolling interest	-0.7	-0.7	(1)	-2.4
Net (loss) income attributable to Terex Corporation	-103.1	93.8	-255.6	493.4
(Loss) Earnings Per Share Attributable to Terex Corporation Common Stockholders:
Basic (in dollars per share)	-0.95	0.98	-2.54	4.97
Diluted (in dollars per share)	-0.95	0.96	-2.54	4.89
Weighted average number of shares outstanding in per share calculation
Basic (in shares)	108.1	96.1	100.7	99.2
Diluted (in shares)	108.1	98.1	100.7	101

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET (USD $)
In Millions	Sep. 30, 2009	Dec. 31, 2008
Current assets
Cash and cash equivalents	1033.2	484.4
Trade receivables (net of allowance of $63.7 and $62.8 at September 30, 2009 and December 31, 2008, respectively)	678.3	967.5
Inventories	2018.5	2234.8
Deferred taxes	176.2	139
Other current assets	218	215.2
Total current assets	4124.2	4040.9
Non-current assets
Property, plant and equipment - net	705.6	481.5
Goodwill	564.7	457
Deferred taxes	106.8	84.5
Other assets	406.4	381.5
Total assets	5907.7	5445.4
Current liabilities
Notes payable and current portion of long-term debt	90.8	39.4
Trade accounts payable	625.9	983.9
Accrued compensation and benefits	183.6	169.3
Accrued warranties and product liability	158.7	149.3
Customer advances	166.2	119.3
Other current liabilities	376.5	363.4
Total current liabilities	1601.7	1824.6
Non-current liabilities
Long-term debt, less current portion	1912.1	1396.4
Retirement plans and other	551.4	480.5
Total liabilities	4065.2	3701.5
Stockholders' equity
Common stock, $.01 par value - authorized 300.0 shares; issued 120.3 and 107.1 shares at September 30, 2009 and December 31, 2008, respectively	1.2	1.1
Additional paid-in capital	1249.5	1046.2
Retained earnings	1,101	1356.6
Accumulated other comprehensive income (loss)	66.5	-82.3
Less cost of shares of common stock in treasury - 13.1 shares at September 30, 2009 and December 31, 2008	-598.7	-599.9
Total Terex Corporation stockholders' equity	1819.5	1721.7
Noncontrolling interest	23	22.2
Total equity	1842.5	1743.9
Total liabilities and stockholders' equity	5907.7	5445.4

1_CONDENSED CONSOLIDATED BALANC

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $)
In Millions, except Per Share data	Sep. 30, 2009	Dec. 31, 2008
CONDENSED CONSOLIDATED BALANCE SHEET
Trade receivables, allowance (in dollar)	63.7	62.8
Common stock, par value (in dollars per share)	0.01	0.01
Common stock, authorized	300	300
Common stock, issued	120.3	107.1
Treasury stock, shares	13.1	13.1

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)
In Millions	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Common Stock in Treasury	Noncontrolling Interest	Total
Balance, beginning of year at Dec. 31, 2007	1.1	1004.1	1284.7	256.6	-203.3	19.8	$2,363
Balance, shares, beginning of year (in shares) at Dec. 31, 2007	100.3
Other Comprehensive Income (Loss) - net of tax:
Balance, beginning of year at Dec. 31, 2007	1.1	1004.1	1284.7	256.6	-203.3	19.8	2,363
Balance, shares, beginning of year (in shares) at Dec. 31, 2007	100.3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Net (Loss) Income			71.9			3.7	75.6
Other Comprehensive Income (Loss) - net of tax:
Translation adjustment				-332.2		0.3	-331.9
Pension liability adjustment				-10.7			-10.7
Derivative hedging adjustment				4			4
Comprehensive Loss							(263)
Issuance of Common Stock		44					44
Compensation under Stock-based Plans - net		-2.3			3.6		1.3
Capital contributed						1	1
Distributions to noncontrolling interest						-2.6	-2.6
Acquisition of Treasury Stock		0.4			-400.2		-399.8
Issuance of Common Stock (in shares)	0.9
Compensation under Stock-based Plans - net (in shares)	0.2
Acquisition of Treasury Stock (in shares)	-7.4
Balance, end of year at Dec. 31, 2008	1.1	1046.2	1356.6	-82.3	-599.9	22.2	1743.9
Balance, shares, end of year (in shares) at Dec. 31, 2008	94
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Net (Loss) Income			-255.6			1	-254.6
Other Comprehensive Income (Loss) - net of tax:
Translation adjustment				149.4			149.4
Pension liability adjustment				0.5			0.5
Derivative hedging adjustment				-1.1			-1.1
Comprehensive Loss							-105.8
Issuance of Common Stock	0.1	181.3					181.4
Compensation under Stock-based Plans - net		(14)			1.4		-12.6
Acquisition						9.7	9.7
Redemption of noncontrolling interest		1.2				-2.9	-1.7
Distributions to noncontrolling interest						(7)	(7)
Issuance of convertible debt - net of tax		34.8					34.8
Acquisition of Treasury Stock					-0.2		-0.2
Issuance of Common Stock (in shares)	13.2
Balance, end of year at Sep. 30, 2009	1.2	1249.5	$1,101	66.5	-598.7	$23	1842.5
Balance, shares, end of year (in shares) at Sep. 30, 2009	107.2

3_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
In Millions	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating Activities
Net (loss) income	-254.6	495.8
Adjustments to reconcile net (loss) income to cash used in operating activities:
Depreciation	59.7	56.2
Amortization	17.3	17.7
Deferred taxes	-85.3	23.7
Loss on early extinguishment of debt	3.3
Gain on sale of assets	-0.8	-1.8
Asset impairments	3.9
Stock-based compensation	25.6	46.5
Excess tax benefit from stock-based compensation		-7.2
Changes in operating assets and liabilities (net of effects of acquisitions and divestitures):
Trade receivables	437.2	-122.1
Inventories	497.2	-530.1
Trade accounts payable	-556.3	42.6
Accrued compensation and benefits	-30.4	-30.3
Income taxes payable	-48.8	50.4
Accrued warranties and product liability	-16.5	22.4
Customer advances	-28.1	-33.9
Other, net	-31.5	-62.4
Net cash used in operating activities	-8.1	-32.5
Investing Activities
Acquisition of businesses, net of cash acquired	-9.8	-478.1
Capital expenditures	-48.1	-91.6
Proceeds from sale of assets	2.3	20.4
Net cash used in investing activities	-55.6	-549.3
Financing Activities
Proceeds from issuance of long-term debt	620.6
Principal repayments of long-term debt	-129.7
Proceeds from issuance of common stock - net	156.3
Excess tax benefit from stock-based compensation		7.2
Proceeds from stock options exercised	0.4	2.3
Net (repayments) borrowings under revolving line of credit agreements	-36.3	204.6
Payment of debt issuance costs	-17.2
Share repurchases		-395.5
Redemption of noncontrolling interest	-1.7
Distributions to noncontrolling interest	(7)	-2.6
Other, net	-1.2	-1.5
Net cash provided by (used in) financing activities	584.2	-185.5
Effect of Exchange Rate Changes on Cash and Cash Equivalents	28.3	-17.2
Net Increase (Decrease) in Cash and Cash Equivalents	548.8	-784.5
Cash and Cash Equivalents at Beginning of Period	484.4	1272.4
Cash and Cash Equivalents at End of Period	1033.2	487.9

BASIS OF PRESENTATION

BASIS OF PRESENTATION
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PRESENTATION	NOTE A - BASIS OF PRESENTATION Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements of Terex Corporation and subsidiaries as of September 30, 2009 and for the three and nine months ended September 30, 2009 and 2008 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America to be included in full-year financial statements. The accompanying Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Changes in Stockholders Equity as of December 31, 2008 have been derived from the audited Consolidated Balance Sheet and Consolidated Statement of Changes in Stockholders Equity as of that date. For further information, refer to the consolidated financial statements and footnotes thereto included in the Companys Annual Report on Form 10-K for the year ended December 31, 2008. The Condensed Consolidated Financial Statements include the accounts of Terex Corporation, its majority-owned subsidiaries and other controlled subsidiaries (Terex or the Company). The Company consolidates all majority-owned and controlled subsidiaries, applies the equity method of accounting for investments in which the Company is able to exercise significant influence, and applies the cost method for all other investments. Intercompany balances, transactions and profits have been eliminated. In the opinion of management, all adjustments considered necessary for 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 and nine months ended September 30, 2009 are not necessarily indicative of results that may be reported for the year ending December 31, 2009. Cash and cash equivalents at September 30, 2009 and December 31, 2008 include $17.8 million and $6.7 million, respectively, which was not immediately available for use. These consist primarily of cash balances held in escrow to secure various obligations of the Company. Certain prior period amounts in the Condensed Consolidated Financial Statements have been reclassified to conform to current period presentation, including the segment realignment discussion in Note B Business Segment Information. In connection with the adoption of the noncontrolling interest guidance codified under Accounting Standards Codification (ASC) 810, Consolidation, amounts reported in prior year periods have been retroactively adjusted to conform with the presentation requirements of this guidance. Recent Accounting Pronouncements. In September 2006, the Financial Accounting Standards Board (FASB) issued fair value measurement guidance, which was later codified under ASC 820, Fair Value Measurements and Disclosures. This guidance was effective for fiscal years beginning after November15, 2007 and for interim period

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
BUSINESS SEGMENT INFORMATION	NOTE B - BUSINESS SEGMENT INFORMATION Terex is a diversified global manufacturer of capital equipment with a mission to deliver value-added offerings that meet or exceed the Companys customers current and future needs. Terex manufactures a broad range of equipment for use in the construction, infrastructure, quarrying, recycling, mining, shipping, transportation, refining, utility and maintenance industries. The Company operates in four reportable segments: (i) Terex Aerial Work Platforms; (ii) Terex Construction; (iii) Terex Cranes; and (iv) Terex Materials Processing Mining. The Aerial Work Platforms segment designs, manufactures, markets and refurbishes aerial work platform equipment, telehandlers, power equipment, construction trailers and utility equipment. Construction, building maintenance, government and utility customers use these products to build and/or maintain large physical assets and structures, construct and maintain utility lines, trim trees and for other commercial operations. Additionally, the Company owns much of the North American distribution channel for its utility products group and operates a fleet of rental utility products in the United States and Canada. The Construction segment designs, manufactures and markets heavy and compact construction equipment, asphalt and concrete equipment, landfill compactors and bridge inspection equipment. Construction, logging, mining, industrial and government customers use these products in construction and infrastructure projects, in coal, minerals, sand and gravel operations and to build roads. The Company acquired A.S.V., Inc. (ASV) on February 26, 2008. The results of ASV are included in the Construction segment from its date of acquisition. The Cranes segment designs, manufactures and markets mobile telescopic cranes, tower cranes, lattice boom crawler cranes, truck-mounted cranes (boom trucks and loading cranes), straddle carriers, gantry cranes, mobile harbor cranes, ship to shore cranes and telescopic container stackers. These products are used primarily for construction, repair and maintenance of infrastructure, building and manufacturing facilities and to improve port productivity. The Company acquired the Port Equipment Business on July 23, 2009. The results of Terex Port Equipment are included in the Cranes segment from its date of acquisition. The Materials Processing Mining segment designs, manufactures and markets crushing and screening equipment, hydraulic mining excavators, highwall mining equipment, high capacity surface mining trucks, drilling equipment and other products. Construction, mining, quarrying and government customers use these products in construction and commodity mining. The Company also assists customers in their rental, leasing and acquisition of its products through Terex Financial Services, Inc. On January 1, 2009, the Company realigned certain operations in an effort to capture market synergies and streamline its cost structure. The Roadbuilding businesses, formerly part of the Companys Roadbuilding, Utility Products and Other (RBUO) segment, are now consolidated within the Construction segment. The Utility Pr

INCOME TAXES

INCOME TAXES
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
INCOME TAXES	NOTE C - INCOME TAXES During the three months ended September 30, 2009, the Company recognized an income tax benefit of $24.5 million on a loss of $126.9 million, an effective tax rate of 19.3%, as compared to income tax expense of $44.9 million on income of $139.4 million, an effective tax rate of 32.2%, for the three months ended September 30, 2008. The lower tax rate for the three months ended September 30, 2009 was primarily due to the impact of the Port Equipment Business acquisition and related acquisition expenses for which no tax benefit was recognized, and changes in the provision for uncertain tax positions. During the nine months ended September 30, 2009, the Company recognized an income tax benefit of $79.3 million on a loss of $333.9 million, an effective tax rate of 23.7%, as compared to income tax expense of $244.9 million on income of $740.7 million, an effective tax rate of 33.1%, for the nine months ended September 30, 2008. The lower tax rate for the nine months ended September 30, 2009 was primarily due to the impact of the Port Equipment Business acquisition and related acquisition expenses for which no tax benefit was recognized, the tax treatment of the SEC settlement charges and changes in the provision for uncertain tax positions. As earnings decrease in profitable periods, the items that affect income tax expense have a more significant impact on the effective tax rate. When the results are losses instead of profits, the effect of items on the tax rate have an opposite impact. The Company conducts business globally and, as a result, the Company and its subsidiaries file income tax returns in U.S. federal, state and foreign jurisdictions, as required. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Germany, Italy, the United Kingdom and the U.S. Various Terex entities are currently under audit in Germany, the United Kingdom, the U.S. and elsewhere. It is reasonably possible that changes to the Companys unrecognized tax benefits could be significant in the next twelve months due to potential tax audit settlements in these jurisdictions. As a result of uncertainties regarding the timing of the completion of the tax audits and their possible outcomes, an estimate of the range of increase or decrease that could occur in the next twelve months and their impact on income tax expense cannot be made. With few exceptions, including net operating loss carryforwards in the U.S. and Australia, the Company and its subsidiaries are generally no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 1999. The Company evaluates the realizability of its deferred tax assets each reporting period. The Company must consider all available evidence, both positive and negative, in evaluating the future realizability of its deferred tax assets, including tax loss carryforwards. Realization requires sufficient taxable income to utilize deferred tax assets. The Company records a valuation allowance for each deferred tax asset for which realization is as

EARNINGS PER SHARE

EARNINGS PER SHARE
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
EARNINGS PER SHARE	NOTE D - EARNINGS PER SHARE Three Months Ended September 30, (in millions, except per share data) Nine Months Ended September 30, (in millions, except per share data) 2009 2008 2009 2008 Net (loss) income attributable to Terex Corporation common stockholders $ (103.1) $ 93.8 $ (255.6) $ 493.4 Basic Shares: Weighted average shares outstanding 108.1 96.1 100.7 99.2 (Loss) earnings per share - basic: $ (0.95) $ 0.98 $ (2.54) $ 4.97 Diluted shares: Weighted average shares outstanding 108.1 96.1 100.7 99.2 Effect of dilutive securities: Stock options and restricted stock awards - 2.0 - 1.8 Diluted weighted average shares outstanding 108.1 98.1 100.7 101.0 (Loss) earnings per share - diluted: $ (0.95) $ 0.96 $ (2.54) $ 4.89 Weighted average restricted stock awards of 1.1 million and 1.3 million were outstanding during the three months ended September 30, 2009 and 2008, respectively, but were not included in the computation of diluted shares because the effect would have been anti-dilutive. Weighted average restricted stock awards of 919 thousand and 240 thousand were outstanding during the nine months ended September 30, 2009 and 2008, respectively, but were not included in the computation of diluted shares because the effect would have been anti-dilutive. Weighted average options to purchase 769 thousand and 241 thousand shares of the Companys common stock, par value $.01 per share (Common Stock) were outstanding during the three months ended September 30, 2009 and 2008, respectively, but were not included in the computation of diluted shares because the effect would have been anti-dilutive. Weighted average options to purchase 773 thousand and 28 thousand shares of Common Stock were outstanding during the nine months ended September 30, 2009 and 2008, respectively, but were not included in the computation of diluted shares because the effect would have been anti-dilutive. Employee stock options and non-vested restricted shares granted by the Company are required to be treated as potential common shares outstanding in computing diluted earnings per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future services that the Company has not yet recognized and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The Company includes the impact of pro forma deferred tax assets in determining the amount of tax benefits for potential windfalls and shortfalls (the differences between tax deductions and book expense) in this calculation. The 4% Convertible Notes described in Note L Long-Term Obligations, are dilutive to the extent that the volume-weighted average price of the Common Stock from the date of issuance of the 4% Convertible Notes during the three and nine months ended September 30, 2009 w

INVENTORIES

INVENTORIES
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
INVENTORIES	NOTE E - INVENTORIES Inventories consist of the following (in millions): September 30, 2009 December 31, 2008 Finished equipment $ 528.1 $ 673.8 Replacement parts 394.0 395.3 Work-in-process 477.6 435.2 Raw materials and supplies 618.8 730.5 Inventories $ 2,018.5 $ 2,234.8 Reserves for lower of cost or market value, excess and obsolete inventory were $162.2 million and $121.0 million at September 30, 2009 and December 31, 2008, respectively.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
PROPERTY, PLANT AND EQUIPMENT	NOTE F - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment net consists of the following (in millions): September 30, 2009 December 31, 2008 Property $ 76.8 $ 54.3 Plant 389.6 211.8 Equipment 608.5 522.6 1,074.9 788.7 Less: Accumulated depreciation (369.3) (307.2) Property, plant and equipment - net $ 705.6 $ 481.5

ACQUISITIONS

ACQUISITIONS
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
ACQUISITIONS	NOTE G - ACQUISITIONS 2009 Acquisitions On July 23, 2009, the Company acquired the Port Equipment Business from Fantuzzi Industries S.a.r.l for approximately $126 million, comprised of approximately $71 million of public indebtedness, approximately $45 million of net payables assumed from the seller and approximately $10 million of net cash payments, which included approximately $69 million of cash that the Port Equipment Business had on the date of acquisition Financial arrangements were made with existing financial creditors of the Port Equipment Business to provide the Company with long-term financing on favorable terms for substantially the entire acquisition price. The results of the Port Equipment Business are included in the Cranes segment from the date of acquisition. Terex Port Equipment designs, manufactures and services port equipment with manufacturing facilities in Italy, Germany and China, as well as sales and service branches around the world. This acquisition helps diversify the Companys Cranes business, and expands the product offering of Terex Cranes to the container transport industry beyond its current stacker product line. Although the acquisition of Terex Port Equipment was not material to the Condensed Consolidated Statement of Income of the Company, given the relative significance of the total assets and liabilities acquired, the following table provides information summarizing the preliminary fair values of the assets acquired and liabilities assumed at July 23, 2009, the date of acquisition (in millions): At July 23, 2009: Current assets $ 334.1 Property, plant and equipment 207.3 Intangible assets 21.7 Goodwill 86.6 Other assets 67.2 Total assets acquired 716.9 Current liabilities 386.4 Non-current liabilities 125.2 Total liabilities assumed 511.6 Noncontrolling interest 9.7 Net assets acquired $ 195.6 On a preliminary basis, of the approximately $22 million of acquired intangible assets, approximately $16 million was assigned to customer relationships with useful lives of 8-11 years, approximately $2 million was assigned to patents with average useful lives of 5 years and approximately $4 million was assigned to trademarks and trade names with average useful lives of 5 years. Goodwill of $86.6 million was recognized on the date of acquisition and represented the excess of the purchase price over the preliminary fair values of net assets acquired, as determined at that time. None of the goodwill assigned to Terex Port Equipment is expected to be deductible for tax purposes. The Company recorded expenses of $4.8 million and $6.8 million, respectively, in other income (expense) net for acquisition related costs for the three and nine months ended September 30, 2009 in the Condensed Consolidated Statement of Income. 2008 Acquisitions On February 26, 2008, the Company acquired approximately 98% of the outstanding common stock of ASV through a tender offer. This was followed by a merger that was completed on March 3, 2008, pursuant to which the Company acquired all of the r

GOODWILL

GOODWILL
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
GOODWILL	NOTE H - GOODWILL An analysis of changes in the Companys goodwill by business segment is as follows (in millions): Aerial Work Platforms Construction Cranes Materials Processing Mining Total Balance at December 31, 2008 $ 107.6 $ - $ 114.7 $ 234.7 $ 457.0 Acquisitions - - 86.6 - 86.6 Foreign exchange effect and other 0.9 - 6.9 13.3 21.1 Balance at September 30, 2009 $ 108.5 $ - $ 208.2 $ 248.0 $ 564.7 Due to a number of factors, including the Companys realignment of certain operations within reporting units, continued weakness in the macroeconomic environment and a decline in forecasted business performance used in the annual goodwill impairment test as of October 1, 2008, the Company performed an interim goodwill impairment test as of September 30, 2009. As part of the Companys impairment analysis for its reporting units, management determined the fair value of each of its reporting units based on estimates of their respective future cash flows. These estimates that are used to derive expected cash flows include assumptions regarding future sales levels, the impact of cost reduction programs, and the level of working capital needed to support a given business. The Company relies on data developed by business segment management as well as macroeconomic data in making these calculations. The discounted cash flow model also includes a determination of the Companys weighted average cost of capital. The cost of capital is based on assumptions about interest rates as well as a risk-adjusted rate of return required by the Companys equity investors. The fair value of certain reporting units reflected reductions in the estimated future cash flows of the reporting units based on lower expectations for growth and profitability resulting primarily from the downturn in the economy. While the Company believes it has made reasonable estimates and assumptions to calculate the fair value of its reporting units, it is possible that a material change could occur.If the actual results are not consistent with the estimates and assumptions used to calculate the fair value of this reporting unit, then a material impairment of goodwill could result. The interim impairment testing performed in the third quarter of 2009 resulted in the fair value of the reporting units exceeding their carrying value thereby indicating no impairment. Due to the ongoing uncertainty in market conditions, which may negatively impact the performance of the Companys reporting units, the Company will continue to monitor the estimated fair value of its reporting units for purposes of determining whether there is evidence of an impairment.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE I - DERIVATIVE FINANCIAL INSTRUMENTS The Company enters into two types of derivatives: hedges of fair value exposures and hedges of cash flow exposures. Fair value exposures relate to recognized assets or liabilities and firm commitments, while cash flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities or forecasted transactions. The Company operates internationally, with manufacturing and sales facilities in various locations around the world, and uses certain financial instruments to manage its foreign currency, interest rate and fair value exposures. To qualify a derivative as a hedge at inception and throughout the hedge period, the Company formally documents the nature and relationships between hedging instruments and hedged items, as well as its risk-management objectives, strategies for undertaking various hedge transactions and method of assessing hedge effectiveness. Additionally, for hedges of forecasted transactions, the significant characteristics and expected terms of a forecasted transaction must be specifically identified, and it must be probable that each forecasted transaction will occur. If it is deemed probable the forecasted transaction will not occur, then the gain or loss would be recognized in current earnings. Financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged, both at inception and throughout the hedged period. The Company does not engage in trading or other speculative use of financial instruments. The Company has used and may use forward contracts and options to mitigate its exposure to changes in foreign currency exchange rates on third party and intercompany forecasted transactions. The primary currencies to which the Company is exposed are the Euro, Australian Dollar and British Pound. The effective portion of unrealized gains and losses associated with forward contracts and the intrinsic value of option contracts are deferred as a component of Accumulated other comprehensive income (loss) until the underlying hedged transactions are reported in the Companys Condensed Consolidated Statement of Income. The Company uses interest rate swaps to mitigate its exposure to changes in interest rates related to existing issuances of variable rate debt and to fair value changes of fixed rate debt. Primary exposure includes movements in the London Interbank Offer Rate (LIBOR). Changes in the fair value of derivatives designated as fair value hedges are recognized in earnings as offsets to changes in fair value of exposures being hedged. The change in the fair value of derivatives designated as cash flow hedges are deferred in Accumulated other comprehensive income (loss) and are recognized in earnings as hedged transactions occur. Transactions deemed ineffective are recognized in earnings immediately. In the Condensed Consolidated Statement of Income, the Company records hedging activity related to debt instruments in interest expense and hedging activity related to foreign currency in the accounts for which the hedged items are rec

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FAIR VALUE MEASUREMENTS	NOTE J - FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis include interest rate swap and foreign currency forward contracts discussed in Note I - Derivative Financial Instruments. These contracts are valued using a market approach, which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. These approaches often use market multiples derived from a set of comparables. The fair value hierarchy for those instruments measured at fair value distinguishes between assumptions based on market data (observable inputs) and the Companys own 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 (e.g., 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. As discussed in Note I - Derivative Financial Instruments, the Company has two types of derivative instruments that it records at fair value on a recurring basis, the interest rate swap and foreign exchange contracts. The interest rate swap is categorized under Level 2 of the hierarchy above and is recorded at September 30, 2009 as an asset of $48.2 million. The foreign exchange contracts are categorized under Level 1 of the hierarchy above and are recorded at September 30, 2009 as a net liability of $3.1 million. The fair value of the interest rate swap agreement is based on LIBOR yield curves at the reporting date. The fair values of the foreign exchange forward contracts are based on quoted forward foreign exchange prices at the reporting date.

RESTRUCTURING AND OTHER CHARGES

RESTRUCTURING AND OTHER CHARGES
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RESTRUCTURING AND OTHER CHARGES	NOTE K - RESTRUCTURING AND OTHER CHARGES The Company continually evaluates its cost structure to be appropriately positioned to respond to changing market conditions. Given recent economic trends, in 2008 and continuing in 2009, the Company initiated certain restructuring programs across all segments to better utilize its workforce and optimize facility utilization to match the decreased demand for its products. The workforce restructuring activities reduced the number of team members at all levels and caused the Company to incur costs for employee termination benefits related to the headcount reductions. For the nine months ended September 30, 2009, the costs incurred equaled the expected costs for these programs. The existing reserve balance as of September 30, 2009 for the workforce restructuring activities is expected to be paid primarily in the next six months. Certain temporary workforce reduction activities such as short workweeks incur costs, which are not termination benefits, but are compensation costs without a service benefit provided by the team member. These costs do not vest or accumulate and are expensed as incurred. The Company implemented restructuring activities at certain facilities in its Aerial Work Platforms (AWP) segment to better utilize manufacturing capacity. The Company is relocating telehandler production from Baraga, Michigan to its Moses Lake, Washington facility. This restructuring is expected to cost $2.6 million and result in reductions of approximately 86 team members. Costs of $1.8 million were charged to Cost of goods sold (COGS) in the three and nine months ended September 30, 2009 for this program and it is expected to be completed by the first quarter of 2010. To reduce cost structure and improve efficiencies in its European operations in the AWP segment, the Company centralized logistics and distribution to a single location in the Netherlands. This program is expected to cost $3.4 million, result in headcount reductions of approximately 71 team members and be completed by December 31, 2009. Program costs of $3.1 million were charged to COGS in the nine months ended September 30, 2009. There were no program costs recorded in COGS in the three months ended September 30, 2009. Costs of $0.3 million and $0.8 million were charged to Selling, general and administrative expense (SGA) in the three and nine months ended September 30, 2009, respectively, for this program. To optimize facility utilization, the Company established a restructuring program to move its crushing and screening manufacturing business from Cedarapids, Iowa within the Materials Processing Mining segment to other facilities in North America. Engineering, sales and service functions for materials processing equipment currently made at the plant will be retained at the facility for the near future. The program is expected to cost $4.0 million, result in headcount reductions of approximately 186 team members and be completed by the second quarter of 2010. Costs of $1.1 million were charged to COGS and $0.3 million were charged to SGA in the three and nine months ended September 30, 2009 for this program. The Com

LONG-TERM OBLIGATIONS

LONG-TERM OBLIGATIONS
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
LONG-TERM OBLIGATIONS	NOTE L - LONG-TERM OBLIGATIONS 2006 Credit Agreement On July 14, 2006, the Company and certain of its subsidiaries entered into a Credit Agreement (the 2006 Credit Agreement) with the lenders party thereto (the Lenders) and Credit Suisse, as administrative and collateral agent. The 2006 Credit Agreement provides the Company with a revolving line of credit of up to $550 million available through July 14, 2012 and term debt of $272.3 million that will mature on July 14, 2013. The revolving line of credit consists of $350 million of domestic revolving loans and $200 million of multicurrency revolving loans. The 2006 Credit Agreement also originally provided for incremental loan commitments of up to $300 million, which may be extended at the option of the Lenders or other lenders, subject to the approval of the administrative agent, in the form of revolving credit loans, term loans or a combination of both. As discussed below, the Company drew $136.5 million in incremental term loans under this commitment during the three months ended September 30, 2009, leaving up to $163.5 million available. The 2006 Credit Agreement was amended on January 1, 2008, February 24, 2009 and June 3, 2009. Pursuant to the June 2009 amendment, the Company reduced its domestic revolving credit commitments under the 2006 Credit Agreement by $150 million, prepaid $58.4 million principal amount of its term loans thereunder, and increased the interest rates charged thereunder. The amendment also eliminated certain existing financial covenants dealing with the Companys consolidated leverage ratio and consolidated fixed charge coverage ratio, and instead will require the Company to maintain liquidity of not less than $250 million on the last day of each fiscal quarter through June 30, 2011, and thereafter maintain a specified senior secured debt leverage ratio. Pursuant to the amendment, the Company added flexibility in various restrictive covenants and agreed to provide certain collateral to secure the Companys obligations under the 2006 Credit Agreement. Additionally under the amendment, at any time on or prior to June 30, 2011, if the Companys consolidated leverage ratio (as defined in the 2006 Credit Agreement) is greater than 2.50 to 1.00, the Company will be prohibited from repurchasing shares of its Common Stock, paying dividends or redeeming debt except with the proceeds of equity offerings and other than regularly scheduled payments of debt and debt under the 2006 Credit Agreement. The amendment also included certain other technical changes. The Company recorded a charge of $3.3 million to recognize a loss on the write-off of unamortized debt acquisition costs for the June 2009 amendment and for debt acquisition costs incurred in connection with the prepayment of existing term loans. In connection with the acquisition of the Port Equipment Business, on July 22, 2009, the Company entered into an Incremental Term Loan Assumption Agreement (the JPM Incremental Agreement) with J.P. Morgan Chase International Financing Limited and on July 23, 2009, the Company entered into an Incremental Term Loan Assumption Agreement (the Additional Incremental

RETIREMENT PLANS AND OTHER BENE

RETIREMENT PLANS AND OTHER BENEFITS
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RETIREMENT PLANS AND OTHER BENEFITS	NOTE M - RETIREMENT PLANS AND OTHER BENEFITS Pension Plans U.S. Plans - As of September 30, 2009, the Company maintained one qualified defined benefit pension plan covering certain domestic employees (the Terex Plan). Prior to December 31, 2008, the Company maintained four qualified plans, which were merged into one plan during 2008. Participation in the plan for all employees has been frozen. Participants are credited with post-freeze service for purposes of determining vesting and retirement eligibility only. The benefits covering salaried employees are based primarily on years of service and employees qualifying compensation during the final years of employment. The benefits covering bargaining unit employees are based primarily on years of service and a flat dollar amount per year of service. It is the Companys policy generally to fund the Terex Plan based on the minimum requirements of the Employee Retirement Income Security Act of 1974. Plan assets consist primarily of common stocks, bonds and short-term cash equivalent funds. The Company adopted a nonqualified Supplemental Executive Retirement Plan (SERP) effective October 1, 2002. The SERP provides retirement benefits to certain senior executives of the Company. Generally, the SERP provides a benefit based on average total compensation earned over a participants final five years of employment and years of service reduced by benefits earned under any Company retirement program, excluding salary deferrals and matching contributions. In addition, benefits are reduced by Social Security Primary Insurance Amounts attributable to Company contributions. The SERP is unfunded. Effective December 31, 2008, participation in the SERP was frozen and a defined contribution plan was established for certain senior executives of the Company. Other Postemployment Benefits The Company has several non-pension post-retirement benefit programs. The health care programs are contributory, with participants contributions adjusted annually, and the life insurance plan is noncontributory. The Company provides postemployment health and life insurance benefits to certain former salaried and hourly employees of Terex Cranes - Waverly Operations and Terex Corporation. The Company provides post-employment health benefits for certain former employees at its Cedarapids and Simplicity Engineering operations. Pension Benefits (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2009 2008 2009 2008 Components of net periodic cost: Service cost $ 0.5 $ 0.5 $ 1.6 $ 1.6 Interest cost 2.1 2.0 6.4 6.1 Expected return on plan assets (1.6) (2.2) (4.9) (6.7) Amortization of prior service cost - - - 0.1 Recognized actuarial loss 1.3 0.6 3.8 1.7 Net periodic cost $ 2.3 $ 0.9 $ 6.9 $ 2.8 Other Benefits (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2009 2008 2009 2008 Components of net periodic cost:

LITIGATION AND CONTINGENCIES

LITIGATION AND CONTINGENCIES
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
LITIGATION AND CONTINGENCIES	NOTE N - LITIGATION AND CONTINGENCIES In the Companys lines of business, a number of suits have been filed alleging damages for accidents that have occurred during the use or operation of the Companys products. The Company is insured for product liability, general liability, workers compensation, employers liability, property damage and other insurable risk as required by law or contract with retained liability to the Company or deductibles. The Company has recorded and maintains an estimated liability in the amount of managements estimate of the Companys 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 possible loss to be estimable. Management does not believe that the final outcome of such matters will have a material adverse effect on the Companys consolidated financial statements. During the third quarter of 2009, the Company reached a final settlement with the SEC, which concluded the SECs investigation of the Company related mainly to (1) certaintransactions between the Company and United Rentals, Inc. that took place in 2000 and 2001, and one transaction between UnitedRentals, Inc. and one of the Companys subsidiaries that took place in 2001before that subsidiary was acquired by the Company, and (2) the circumstances of the restatement of certain of the Companys financial statementsfor the years 2000-2004. Under the terms of the settlement,the Company consented, without admitting or denying the SECs allegations, to the entry of a judgment that enjoins the Company from committing oraiding and abettinganyfuture violations of the anti-fraud, books and records, reporting and internal control provisions of the federal securities laws and related SEC rules. The Company also paid a civil penalty of $8 million for which the Company recorded a charge in its quarter ended June 30, 2009.The settlement resolves all matters relating to the potential liability of the Company. The SEC Staff has also advised counsel for each of the Companys current employees involved in the investigation, including its Chief Executive Officer, Ronald M. DeFeo, that it has completed its investigation with respect to these matters and that, based upon its investigation, the Staff does not intend to recommend that the SEC take any enforcement action against them. The Company is involved in various other legal proceedings, including workers compensation liability and intellectual property litigation, 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. The Companys outstanding letters of credit totaled $210.7 million at September 30, 2009. The letters of credit generally serve as collateral for certain liabilities included in the Condensed Consolidated Balance Sheet. Certain of the letters of credit serve as collateral guaranteeing the Companys performance under contract

STOCKHOLDERS EQUITY

STOCKHOLDERS EQUITY
	1/1/2009 - 9/30/2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
STOCKHOLDERS' EQUITY	NOTE O - STOCKHOLDERS EQUITY Total non-stockholder changes in equity (comprehensive income) include all changes in equity during a period except those resulting from investments by, and distributions to, stockholders. The specific components include: net income, deferred gains and losses resulting from foreign currency translation, pension liability adjustments and deferred gains and losses resulting from derivative hedging transactions. Total non-stockholder changes in equity were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2009 2008 2009 2008 Net (loss) income $ (102.4) $ 94.5 $ (254.6) $ 495.8 Other comprehensive (loss) income: Pension liability adjustment 0.9 2.9 0.5 2.9 Translation adjustment 51.8 (269.4) 149.4 (174.1) Derivative hedging adjustment 2.5 (2.4) (1.1) 1.8 Comprehensive (loss) income (47.2) (174.4) (105.8) 326.4 Comprehensive income attributable to noncontrolling interest (0.5) (0.2) (1.0) (3.1) Comprehensive (loss) income attributable to Terex Corporation $ (47.7) $ (174.6) $ (106.8) $ 323.3 During the nine months ended September 30, 2009, the Company purchased the remaining 20% of a noncontrolling interest in two of its subsidiaries in the Aerial Work Platforms segment. The result of the transaction was a decrease in Noncontrolling interest of $2.9 million and an increase in Additional paid-in capital of $1.2 million in the Condensed Consolidated Balance Sheet as of September 30, 2009. During the nine months ended September 30, 2009, the Company granted 1,616 thousand shares of restricted stock to its employees with a weighted average grant date fair value of $8.02 per share. Approximately 66% of these restricted stock awards vest ratably over a three-year period and 34% cliff vest at the end of a three-year period. 139 thousand of these shares are based on performance targets, with 105 thousand of these performance grants containing a market condition. The Company used the Monte Carlo method to determine a grant date fair value of $5.74 per share for the awards with a market condition. The Monte Carlo method is a statistical simulation technique used to provide the grant date fair value of an award. The following table presents the weighted-average assumptions used in the valuation: Dividend yield 0.00% Expected volatility 71.93% Risk-free interest rate 1.38% Expected life (in years) 3 Prior to June 30, 2009, the Board of Directors of the Company had authorized the repurchase of up to $1,200 million of the Companys outstanding common shares. The program expired on June 30, 2009. During the nine months ended September 30, 2009,the Company did not acquire any shares pursuant to the share repurchase program. In total, the Company purchased approximately 9.7 million shares under this program for approximately $562 million. In June 2009, the Company completed a public offering of Common

CONSOLIDATING FINANCIAL STATEME

CONSOLIDATING FINANCIAL STATEMENTS
	9 Months Ended Sep. 30, 2009 USD / shares
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATING FINANCIAL STATEMENTS	NOTE P - CONSOLIDATING FINANCIAL STATEMENTS On November 25, 2003, the Company sold and issued $300 aggregate principal amount of the 7-3/8% Notes. As of September 30, 2009, the 7-3/8% Notes were jointly and severally guaranteed by the following wholly-owned subsidiaries of the Company (the Wholly-owned Guarantors): Amida Industries, Inc., A.S.V., Inc., CMI Terex Corporation, Duvalpilot Equipment Outfitters, LLC, Genie Financial Services, Inc., Genie Holdings, Inc., Genie Industries, Inc., Genie International, Inc., Genie Manufacturing, Inc., GFS National, Inc., Halco America Inc., Hydra Platforms Mfg. Inc., Loegering Mfg. Inc., Powerscreen Holdings USA Inc., Powerscreen International LLC, Powerscreen North America Inc., Powerscreen USA, LLC, Powerscreen USC Inc., PPM Cranes, Inc., Schaeff Incorporated, Schaeff of North America, Inc., Spinnaker Insurance Company, Superior Highwall Holding, Inc., Superior Highwall Miners, Inc., Terex Advance Mixer, Inc., Terex Aerials, Inc., Terex Financial Services, Inc., Terex Mexico, LLC, Terex Mining Equipment, Inc., Terex USA, LLC, Terex Utilities, Inc., Terex-RO Corporation and Terex-Telelect, Inc. All of the guarantees are full and unconditional. No subsidiaries of the Company, except the Wholly-owned Guarantors, have provided a guarantee of the 7-3/8% Notes. The following summarized condensed consolidating financial information for the Company segregates the financial information of Terex Corporation, the Wholly-owned Guarantors and the non-guarantor subsidiaries. The results and financial position of businesses acquired are included from the dates of their respective acquisitions. Terex Corporation consists of parent company operations and non-guarantor subsidiaries directly owned by the parent company. Subsidiaries of the parent company are reported on the equity basis. Wholly-owned Guarantors combine the operations of the Wholly-owned Guarantor subsidiaries. Subsidiaries of Wholly-owned Guarantors that are not themselves guarantors are reported on the equity basis. Non-guarantor subsidiaries combine the operations of subsidiaries which have not provided a guarantee of the obligations of Terex Corporation under the 7-3/8% Notes. Debt and goodwill allocated to subsidiaries are presented on a push-down accounting basis. On June 25, 2008, Terex and certain of its domestic subsidiaries entered into a First Supplemental Indenture for the 7-3/8% Notes, joining other domestic subsidiaries of Terex as Wholly-owned Guarantors pursuant to the terms of the Indenture for the 7-3/8% Notes. These additional subsidiaries are included in the current period financial statements as Wholly-owned Guarantors. Prior period financial statements have been recast to include the additional subsidiaries as Wholly-owned Guarantors for all periods presented. TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF INCOME THREE MONTHS ENDED SEPTEMBER 30, 2009 (in millions) Terex Corporation Wholly-owned Guarantors Non- guarantor Subsidiaries Intercompany Eliminations Consolidated Net sales $ 111.3 $ 323.9 $ 938.6 $ (147.7) $ 1,226

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION (USD $)
In Millions	9 Months Ended Sep. 30, 2009	Oct. 27, 2009	Jun. 30, 2008
Document and Entity Information
Entity Registrant Name	TEREX CORP
Entity Central Index Key	0000097216
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$4,987
Entity Common Stock, Shares Outstanding		108.1