Terex (TEX) 10-Q 30 Apr 10 2010 Q1 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF INCOME (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONDENSED CONSOLIDATED STATEMENT OF INCOME
Net sales	935.9	965.8
Cost of goods sold	-837.4	-898.7
Gross profit	98.5	67.1
Selling, general and administrative expenses	(165)	-178.1
Loss from operations	-66.5	(111)
Other income (expense)
Interest income	1.1	1.1
Interest expense	-35.9	-23.4
Other (expense) income - net	-12.9	-3.2
Loss from continuing operations before income taxes	-114.2	-136.5
Benefit from income taxes	36.9	38.4
Loss from continuing operations	-77.3	-98.1
(Loss) income from discontinued operations - net of tax	-1.5	23.6
Gain on disposition of discontinued operations - net of tax	620.4
Net income (loss)	541.6	-74.5
Net income attributable to non-controlling interest	-1.7	-0.4
Net income (loss) attributable to Terex Corporation	539.9	-74.9
Amounts attributable to Terex Corporation common stockholders:
Loss from continuing operations	(79)	-98.5
(Loss) income from discontinued operations - net of tax	-1.5	23.6
Gain on disposition of discontinued operations - net of tax	620.4
Net income (loss) attributable to Terex Corporation	539.9	-74.9
Basic (Loss) Earnings per Share Attributable to Terex Corporation Common Stockholders:
Loss from continuing operations (in dollars per share)	-0.73	-1.04
(Loss) income from discontinued operations - net of tax (in dollars per share)	-0.01	0.25
Gain on disposition of discontinued operations - net of tax (in dollars per share)	5.72
Net income (loss) attributable to Terex Corporation (in dollars per share)	4.98	-0.79
Diluted (Loss) Earnings per Share Attributable to Terex Corporation Common Stockholders:
Loss from continuing operations (in dollars per share)	-0.73	-1.04
(Loss) income from discontinued operations - net of tax (in dollars per share)	-0.01	0.25
Gain on disposition of discontinued operations - net of tax (in dollars per share)	5.72
Net income (loss) attributable to Terex Corporation (in dollars per share)	4.98	-0.79
Weighted average number of shares outstanding in per share calculation
Basic (in shares)	108.4	94.8
Diluted (in shares)	108.4	94.8

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current assets
Cash and cash equivalents	1796.2	929.5
Investments in marketable securities	384.3	0.6
Trade receivables (net of allowance of $60.1 and $60.1 at March 31, 2010 and December 31, 2009, respectively)	608.9	593.8
Inventories	1322.5	1343.9
Deferred taxes	29.5	120.5
Other current assets	143.7	203
Current assets - discontinued operations	109	723.3
Total current assets	4394.1	3914.6
Long-term assets
Property, plant and equipment - net	573.6	605
Goodwill	491.5	511.1
Deferred taxes	173.6	145.8
Other assets	326.7	322.8
Long-term assets - discontinued operations	36.6	214.5
Total assets	5996.1	5713.8
Current liabilities
Notes payable and current portion of long-term debt	63.6	73.7
Trade accounts payable	569.1	525.1
Accrued compensation and benefits	120.1	130.7
Accrued warranties and product liability	97.2	108.2
Customer advances	109.1	131.8
Other current liabilities	422.8	326.8
Current liabilities - discontinued operations	47.1	258.4
Total current liabilities	1,429	1554.7
Non-current liabilities
Long-term debt, less current portion	1904.4	1892.7
Retirement plans and other	421.7	448.2
Non-current liabilities - discontinued operations	116.9	143.8
Total liabilities	3,872	4039.4
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value - authorized 300.0 shares; issued 120.8 and 120.4 shares at March 31, 2010 and December 31, 2009, respectively	1.2	1.2
Additional paid-in capital	1242.8	1253.5
Retained earnings	1498.1	958.2
Accumulated other comprehensive (loss) income	-41.6	36
Less: Cost of shares of common stock in treasury - 13.0 and 13.1 shares at March 31, 2010 and December 31, 2009, respectively	-598.1	-598.7
Total Terex Corporation stockholders' equity	2102.4	1650.2
Noncontrolling interest	21.7	24.2
Total equity	2124.1	1674.4
Total liabilities and equity	5996.1	5713.8

1_CONDENSED CONSOLIDATED BALANC

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $)
In Millions, except Per Share data	Mar. 31, 2010	Dec. 31, 2009
CONDENSED CONSOLIDATED BALANCE SHEET
Trade receivables, allowance (in dollars)	60.1	60.1
Common stock, par value (in dollars per share)	0.01	0.01
Common stock, shares authorized	300	300
Common stock, shares issued	120.8	120.4
Treasury stock, shares	13	13.1

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating Activities of Continuing Operations
Net income (loss)	541.6	-74.5
Adjustments to reconcile net income (loss) to cash used in operating activities of continuing operations:
Loss (income) from discontinued operations	1.5	-23.6
Gain on disposition of discontinued operations	-620.4
Depreciation	20.4	16.6
Amortization	6.8	4.8
Deferred taxes	36.9	-22.4
Gain on sale of assets	-0.4	-0.3
Stock-based compensation expense	8.8	9.2
Excess tax benefit from stock-based compensation	-0.9
Asset impairment	4.1
Changes in operating assets and liabilities (net of effects of acquisitions and divestitures):
Trade receivables	-36.4	219.6
Inventories	-21.7	59.2
Trade accounts payable	62.3	-253.3
Accrued compensation and benefits	-10.9	(12)
Income taxes payable	2.2	-28.2
Accrued warranties and product liability	-7.6	-11.4
Customer advances	-17.8	5
Other, net	-75.2	13.7
Net cash used in operating activities of continuing operations	-106.7	-97.6
Investing Activities
Capital expenditures	-8.5	-18.1
Proceeds from disposition of discontinued operations	1,002
Proceeds from sale of assets	4.3	0.5
Net cash provided by (used in) investing activities of continuing operations	997.8	-17.6
Financing Activities
Payment of debt issuance costs		(3)
Principal repayments of long-term debt	-0.6
Proceeds from stock options exercised	0.1
Excess tax benefit from stock-based compensation	0.9
Net (repayments) borrowings under revolving line of credit agreements	-10.1	45.3
Purchase of noncontrolling interest	-12.9	-1.7
Other, net	-0.4	-0.3
Net cash (used in) provided by financing activities of continuing operations	(23)	40.3
Cash Flows from Discontinued Operations
Net cash used in operating activities of discontinued operations	-11.8	-41.6
Net cash used in investing activities of discontinued operations		-2.6
Net cash provided by (used in) financing activities of discontinued operations	0.1	-0.1
Net cash used in discontinued operations	-11.7	-44.3
Effect of Exchange Rate Changes on Cash and Cash Equivalents	-31.4	-20.9
Net Increase (Decrease) in Cash and Cash Equivalents	825	-140.1
Cash and Cash Equivalents at Beginning of Period	971.2	484.4
Cash and Cash Equivalents at End of Period	1796.2	344.3

BASIS OF PRESENTATION

BASIS OF PRESENTATION
	3 Months Ended Mar. 31, 2010
BASIS OF PRESENTATION
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 March 31, 2010 and for the three months ended March 31, 2010 and 2009 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 as of December 31, 2009 has been derived from the audited Consolidated Balance Sheet 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 December31,2009. The Condensed Consolidated Financial Statements include the accounts of Terex Corporation, its majority-owned subsidiaries and other controlled subsidiaries (Terex or the Company).The Company consolidates all majority-owned and controlled subsidiaries, applies the equity method of accounting for investments in which the Company is able to exercise significant influence, and applies the cost method for all other investments.All material 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 months ended March 31, 2010 are not necessarily indicative of results that may be expected for the year ending December 31, 2010. Cash and cash equivalents at March 31, 2010 and December 31, 2009 include $23.3 million and $16.1 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. Reclassification. Certain prior year amounts have been reclassified to conform to the current years presentation.On December 20, 2009, the Company entered into a definitive agreement to sell its Mining business to Bucyrus International, Inc. (Bucyrus).The Company completed this transaction on February 19, 2010.The results of the Mining business were consolidated within the former Materials Processing Mining Segment.On December 31, 2009, the Company sold the assets of its construction trailer business.The results of this business were formerly consolidated within the Aerial Work Platforms (AWP) segment.On March 11, 2010, the Company entered into a definitive agreement to sell its Atlas heavy construction equipment and knuckle-boom cranes businesses.The Company completed the portion of this transaction related to the operations in Germany on April 15, 2010.The results of these businesses were formerly consolidated within the Construction and Cranes segments, respectively.In March 2010, the Compan

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION
	3 Months Ended Mar. 31, 2010
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION	NOTE B BUSINESS SEGMENT INFORMATION Terex is a diversified global equipment manufacturer of a variety of machinery products.The Company is focused on delivering reliable, customer-driven solutions for a wide range of commercial applications, including the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy and utility industries.The Company operates in four reportable segments: (i) AWP; (ii) Construction; (iii) Cranes; and (iv) Materials Processing (MP). The AWP segment designs, manufactures, refurbishes and markets aerial work platform equipment, telehandlers, light towers and utility equipment.Customers use the Companys products to construct and maintain industrial, commercial and residential buildings and facilities, construct and maintain utility and telecommunication lines, trim trees and for other commercial operations, as well as in a wide range of infrastructure projects.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, as well as roadbuilding equipment, including asphalt and concrete equipment, landfill compactors and bridge inspection equipment.Construction, forestry, rental, mining, industrial and government customers use these products in construction and infrastructure projects to build roads and bridges and in coal, minerals, sand and gravel operations. The Cranes segment designs, manufactures, services and markets mobile telescopic cranes, tower cranes, lattice boom crawler cranes, truck-mounted cranes (boom trucks) and specialized port and rail equipment, including straddle carriers, gantry cranes, mobile harbor cranes, ship-to-shore cranes, telescopic container stackers, lift trucks and forklifts, as well as their related replacement parts and components.These products are used primarily for construction, repair and maintenance of commercial buildings, manufacturing facilities and infrastructure and material handling at port and railway facilities.The Company acquired the port equipment businesses of Reggiane Cranes and Plants S.p.A. and Noell Crane Holding GmbH (collectively, Terex Port Equipment or the Port Equipment Business)on July 23, 2009.The results of the Port Equipment Business are included in the Cranes segment from its date of acquisition. The MP segment designs, manufactures and markets materials processing equipment, including crushers, washing systems, screens, apron feeders and related components and replacement parts.Construction, quarrying, mining and government customers use these products in construction and infrastructure projects and various quarrying and mining applications. The Company also assists customers in their rental, leasing and acquisition of our products through Terex Financial Services. Business segment information is presented below, and prior period amounts have been retrospectively adjusted to conform to this presentation (in millions): Three Months Ended March 31, 2010

INCOME TAXES

INCOME TAXES
	3 Months Ended Mar. 31, 2010
INCOME TAXES
INCOME TAXES	NOTE C INCOME TAXES The effective tax rate on continuing operations for the three months ended March 31, 2010 was 32.3%, as compared to an effective tax rate of 28.1% for the three months ended March 31, 2009.The principal drivers of the higher tax benefit were lower expenses for uncertain tax positions and the jurisdictional mix of income and losses of Terex entities worldwide. The Company conducts business globally and 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 entities of the Company are currently under audit in Australia, Germany, Italy, the United Kingdom, the U.S. and elsewhere.For example, German tax authorities are examining various intercompany transactions in connection with audits in Germany.With respect to all uncertain tax positions, where the Company has determined that its tax return filing position does not satisfy the more likely than not recognition threshold of ASC 740-10, it has recorded no tax benefits.Where the Company has determined that its tax return filing positions are more likely than not to be sustained, the Company has measured and recorded the largest amount of tax benefit greater than 50% likely to be realized. In April 2010, the Internal Revenue Service (IRS) issued a notice of assessment for additional tax of approximately $3 million with respect to the 2005, 2006 and 2007 tax years.The Company expects to consent to the assessment and pay the additional tax, plus interest, in the second quarter of 2010, which would settle the IRS audit for these tax years.As a result of uncertainties regarding the timing of the completion of other tax audits and their possible outcomes, an estimate of the full range of increase or decrease that could occur in the next twelve months and their impact on income tax expense cannot be made.Due to the high degree of uncertainty regarding the amount and timing of potential future cash flows associated with the remaining unrecognized tax benefits, the Company is unable to make a reasonable estimate of the amount and period in which these remaining uncertain tax positions will be re-measured, effectively settled, or paid. The Company evaluates the net realizable value of its deferred tax assets each reporting period.The Company must consider all objective evidence, both positive and negative, in evaluating the future realizability of its deferred tax assets, including tax loss carry forwards.Realization requires sufficient taxable income to use deferred tax assets.The Company records a valuation allowance for each deferred tax asset for which realization is assessed as not more likely than not.The Companys assessment that deferred tax assets will be realized is based on estimates of future taxable income and other events and is not assured.If the current estimates of future taxable income are not realized or future estimates of taxable income are reduced because of the challeng

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS
	3 Months Ended Mar. 31, 2010
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS	NOTE D DISCONTINUED OPERATIONS On December 20, 2009, the Company entered into a definitive agreement to sell its Mining business, which was previously part of the former Materials Processing Mining segment, for approximately $1.3 billion. On February 19, 2010, the Company completed this transaction and received approximately $1 billion in cash and approximately 5.8 million shares of Bucyrus common stock.This transaction allows the Company to invest in its current businesses and focus on products and services where it can maintain and build a strong market presence.The products divested by the Company in the transaction include hydraulic mining excavators, high capacity surface mining trucks, track and rotary blasthole drills, drill tools and highwall mining equipment, as well as the related parts and aftermarket service businesses, including the Company-owned distribution locations.The Company recorded a gain on the sale of its Mining business of approximately $620 million, net of tax.Bucyrus has provided the Company with a closing date net asset value statement of the Mining business that would require a substantial payment from the Company to Bucyrus. The Company believes that the Bucyrus calculation of the closing date net asset value is incorrect and not in accordance with the terms of the definitive agreement. The Company objects to the Bucyrus statement and will be providing Bucyrus with a revised closing date net asset value statement that it believes will not require any payment from the Company to Bucyrus. The Company accounts for the shares of Bucyrus common stock received as available for sale securities as defined in ASC 320, Investments Debt and Equity Securities.As such, the carrying value of the Bucyrus common stock will be adjusted on a quarterly basis based on changes in fair value of the stock with the corresponding entry for unrealized gains and losses recorded in Other comprehensive income.This stock is traded in an active market and measured under the Level 1 fair value category as defined in Note J Fair Value Measurements. On December 31, 2009, the Company completed the sale of substantially all of the assets used in its construction trailer operations, which was formerly part of the AWP segment.The total purchase price paid at closing was $3.1 million, comprised of $0.1 million in cash and $3.0 million of promissory notes.The promissory notes are secured by a security agreement and a mortgage on the real estate sold in the transaction. In March 2010, the Company sold the assets of its Powertrain gears business and pumps business, which were formerly part of the Construction segment.Total proceeds on the sale of these businesses were approximately $2 million. On March 11, 2010, the Company entered into an agreement to sell its Atlas heavy construction equipment and knuckle-boom crane businesses (collectively, Atlas) to Atlas Machinen GmbH (Atlas Machinen).Fil Filipov, a former Terex executive and the father of Steve Filipov, the Companys President, Developing Markets and Strategic Accounts, is the Chairman of Atlas Machinen.The Atlas product lines being divested in the transaction include crawler, w

EARNINGS PER SHARE

EARNINGS PER SHARE
	3 Months Ended Mar. 31, 2010
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE E EARNINGS PER SHARE (in millions, except per share data) Three Months Ended March 31, 2010 2009 Net loss from continuing operations attributable to Terex Corporation common stockholders $ (79.0 ) $ (98.5 ) (Loss) income from discontinued operations-net of tax (1.5 ) 23.6 Gain on disposition of discontinued operations-net of tax 620.4 - Net income (loss) attributable to Terex Corporation $ 539.9 $ (74.9 ) Basic shares: Weighted average shares outstanding 108.4 94.8 Earnings per share - basic: Loss from continuing operations $ (0.73 ) $ (1.04 ) (Loss) income from discontinued operations-net of tax (0.01 ) 0.25 Gain on disposition of discontinued operations-net of tax 5.72 - Net income (loss) attributable to Terex Corporation $ 4.98 $ (0.79 ) Diluted shares: Weighted average shares outstanding 108.4 94.8 Effect of dilutive securities: Stock options, restricted stock awards and convertible notes - - Diluted weighted average shares outstanding 108.4 94.8 Earnings per share - diluted: Loss from continuing operations $ (0.73 ) $ (1.04 ) (Loss) income from discontinued operations-net of tax (0.01 ) 0.25 Gain on disposition of discontinued operations-net of tax 5.72 - Net income (loss) attributable to Terex Corporation $ 4.98 $ (0.79 ) The following table provides information to reconcile amounts reported on the Condensed Consolidated Statement of Income to amounts used to calculate earnings per share attributable to Terex Corporation common stockholders (in millions): Noncontrolling Interest Attributable to Common Stockholders Three Months Ended March 31, 2010 2009 Loss from continuing operations - as reported $ (77.3 ) $ (98.1 ) Less: Noncontrolling interest attributed to loss from continuing operations (1.7 ) (0.4 ) Loss from continuing operations attributable to common stockholders $ (79.0 ) $ (98.5 ) Weighted average options to purchase 0.6 million and 0.8 million shares of Common Stock were outstanding during the three months ended March 31, 2010 and 2009, respectively, but were not included in the computation of diluted shares as the effect would be anti-dilutive.Weighted average restricted stock awards of 1.4 million and 1.6 million were outstanding during the three months ended March 31, 2010 and 2009, respectively, but were not included in the computation of diluted shares because the effect would be anti-dilutive.ASC 260, Earnings per Share requires that employee stock options and non-vested restricted shares granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future services that the Company has not yet

INVENTORIES

INVENTORIES
	3 Months Ended Mar. 31, 2010
INVENTORIES
INVENTORIES	NOTE F INVENTORIES Inventories consist of the following (in millions): March 31, 2010 December 31, 2009 Finished equipment $ 384.4 $ 388.6 Replacement parts 208.6 216.5 Work-in-process 346.9 342.4 Raw materials and supplies 382.6 396.4 Inventories $ 1,322.5 $ 1,343.9 Reserves for lower of cost or market value, excess and obsolete inventory were $104.5 million and $110.8 million at March 31, 2010 and December 31, 2009, respectively.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT
	3 Months Ended Mar. 31, 2010
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	NOTE G PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment net consist of the following (in millions): March 31, 2010 December 31, 2009 Property $ 82.7 $ 90.5 Plant 303.3 293.9 Equipment 502.1 529.0 Less: Accumulated depreciation (314.5 ) (308.4 ) Property, plant and equipment net $ 573.6 $ 605.0

GOODWILL

GOODWILL
	3 Months Ended Mar. 31, 2010
GOODWILL
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 Total Balance at December 31, 2009, gross $ 150.7 $ 438.8 $ 224.1 $ 202.3 $ 1,015.9 Accumulated impairment (42.8 ) (438.8 ) - (23.2 ) (504.8 ) Balance at December 31, 2009, net 107.9 - 224.1 179.1 511.1 Foreign exchange effect and other (0.9 ) - (9.3 ) (9.4 ) (19.6 ) Balance at March 31, 2010, gross 149.8 438.8 214.8 192.9 996.3 Accumulated impairment (42.8 ) (438.8 ) - (23.2 ) (504.8 ) Balance at March 31, 2010, net $ 107.0 $ - $ 214.8 $ 169.7 $ 491.5

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS
	3 Months Ended Mar. 31, 2010
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE I DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company enters into two types of derivatives to hedge its interest rate exposure and foreign currency exposure: hedges of fair value exposures and hedges of cash flow exposures.Fair value exposures relate to recognized assets or liabilities and firm commitments, while cash flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities or forecasted transactions.Additionally, the Company has entered into derivative contracts that are intended to partially mitigate risks associated with the shares of common stock of Bucyrus acquired in connection with the sale of the Mining business.These contracts have not been designated as hedges because they do not meet the requirements for hedge accounting. 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 that 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 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 fair value of derivatives designated as cash flow hedges are deferred in Accumulated oth

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	3 Months Ended Mar. 31, 2010
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE J FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis under the provisions of ASC 820, Fair Value Measurements and Disclosures (ASC 820) 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.ASC 820establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Companys 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.As discussed in Note I - Derivative Financial Instruments, the Company has three types of derivative instruments that it records at fair value on a recurring basis: the interest rate swap, option derivative contracts and foreign exchange contracts.The interest rate swap and option derivative contracts are categorized under Level 2 of the hierarchy above and are recorded at March 31, 2010 as assets of $44.4 million and $13.5 million, respectively.The foreign exchange contracts are categorized under Level 1 of the hierarchy above and are recorded at March 31, 2010 as a net asset of $1.4 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 option derivative contracts are based on observable market prices 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
	3 Months Ended Mar. 31, 2010
RESTRUCTURING AND OTHER CHARGES
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 economic trends from 2008 into 2010, 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 headcount reductions.The majority of the headcount reductions in the Construction segment occurred in Europe where there is generally a higher cost associated with such reductions.The existing reserve balance as of March 31, 2010 for the workforce restructuring activities is expected to be paid primarily in the second quarter of 2010 except for certain activities in the Cranes segment, which are dependent on the expiration of certain government benefits.The costs incurred during the period for employee termination benefits include the impact of expected future headcount reductions. The following table provides information by segment of the number of team members reduced during the three months ended March 31, 2010: Number of headcount reductions Aerial Work Platforms 4 Construction 13 Cranes 4 Materials Processing 14 Corporate and Other - Total 35 The Company implemented restructuring activities at certain facilities in its 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 $2.2 million, of which $1.9 million has been incurred to date, and result in reductions of approximately 86 team members.This program is expected to be completed by the end of the second quarter of 2010. To optimize facility utilization, the Company established a restructuring program to move its crushing and screening manufacturing business from Cedarapids, Iowa within the MP segment to other facilities primarily 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, of which $1.5 million has been incurred to date, result in headcount reductions of approximately 186 team members and be completed by the end of the second quarter of 2010.Costs of $0.1 million were charged to Cost of goods sold (COGS) in the three months ended March 31, 2010 for this program. The Company established a restructuring program within the MP segment to realize cost synergies and support its joint brand strategy by consolidating certain of its crushing equipment manufacturing businesses.This program will result in the relocation of its Pegson operations in Coalville, United Kingdom to Omagh, Northern Ireland. The global design center for crushing equipment will be retained at Coalville for the near future.The program is expected to cost $8.5 million, of which $5.4 million

LONG-TERM OBLIGATIONS

LONG-TERM OBLIGATIONS
	3 Months Ended Mar. 31, 2010
LONG-TERM OBLIGATIONS
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 $271.6 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 year ended December 31, 2009, leaving up to $163.5 million available.The 2006 Credit Agreement was amended on January 11, 2008, February 24, 2009, June 3, 2009 and January 15, 2010. Pursuant to the January 15 amendment, the Company was permitted to (i) acquire shares of common stock of Bucyrus in connection with the disposition of its Mining business and (ii) enter into hedging agreements for the purpose of managing risk because of its investment in Bucyrus stock.In accordance with this amendment, Terex Mining Australia Pty Ltd has been replaced as the Australian borrower by Terex Lifting Australia Pty Ltd. 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.Liquidity is defined as Cash and cash equivalents plus availability under the 2006 Credit Agreement.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 and incurring additional debt.The amendment also included certain other technical changes. In connection with the acquisition of the Port Equipme

RETIREMENT PLANS AND OTHER BENE

RETIREMENT PLANS AND OTHER BENEFITS
	3 Months Ended Mar. 31, 2010
RETIREMENT PLANS AND OTHER BENEFITS
RETIREMENT PLANS AND OTHER BENEFITS	NOTE M RETIREMENT PLANS AND OTHER BENEFITS Pension Plans U.S. Plans - As of March 31, 2010, the Company maintained one qualified defined benefit pension plan covering certain domestic employees (the Terex Plan).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.Participation in the SERP has been frozen. 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 Other Benefits Three Months Ended March 31, Three Months Ended March 31, 2010 2009 2010 2009 Components of net periodic cost: Service cost $ 0.5 $ 0.5 $ - $ - Interest cost 2.1 2.1 0.2 0.2 Expected return on plan assets (1.8 ) (1.6 ) - - Amortization of prior service cost 0.1 - - - Recognized actuarial loss 0.9 1.3 0.1 0.1 Net periodic cost $ 1.8 $ 2.3 $ 0.3 $ 0.3 The Company plans to contribute approximately $10 million to its U.S. defined benefit pension and post-retirement plans for the year ending December 31, 2010.During the three months ended March 31, 2010, the Company contributed $0.7 million to its U.S. defined benefit pension plans. International Plans The Company maintains defined benefit plans in Germany, France, China, India and the United Kingdom for some of its subsidiaries.The plans in Germany

LITIGATION AND CONTINGENCIES

LITIGATION AND CONTINGENCIES
	3 Months Ended Mar. 31, 2010
LITIGATION AND CONTINGENCIES
LITIGATION AND CONTINGENCIES	NOTE N LITIGATION AND CONTINGENCIES In the Companys lines of business, numerous 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 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 outcome of such matters will have a material adverse effect on the Companys consolidated financial position. The Company has recently been named in a number of class action lawsuits, which generally cover the period from February 2008 to February 2009.These lawsuits include three securities class action lawsuits, four ERISA class action lawsuits and one stockholder derivative lawsuit.The lawsuits allege, among other things, that certain of the Companys SEC filings and other public statements contained false and misleading statements which resulted in damages to the Company, the plaintiffs and the members of the purported class when they purchased the Companys securities and that there were breaches of fiduciary duties and of ERISA disclosure requirements.These actions are at the very early stages and the Company has no information other than as set forth in the complaints.The complaints all seek, among other things, unspecified compensatory damages, costs and expenses.The derivative complaint also seeks amendments to the Companys corporate governance procedures in addition to unspecified compensatory damages from the individual defendants in favor of the Company.The Company believes that the allegations in the suits are completely without merit, and Terex, its directors and the named executives will vigorously defend against them.The Company believes that it has acted, and continues to act, in compliance with federal securities laws and ERISA law. The three securities class action complaints, all filed in the United States District Court, District of Connecticut, are: Sheet Metal Workers Local 32 Pension Fund, individually and on behalf of all others similarly situated v. Terex Corporation, Ronald M. DeFeo, Thomas J. Riordan and Phillip C. Widman, filed December 21, 2009; Michael Glassman, Trustee on behalf of the Kathleen Michael Glassman Family Trust, individually and on behalf of itself and all others similarly situated v. Terex Corporation, Ronald M. DeFeo, Phillip C. Widman and Thomas J. Riordan, filed January 15, 2010; and James C. Hays, individually and on behalf of himself and all others similarly situated v. Terex Corporation, Ronald M. DeFeo, Phillip C. Widman and Thomas J. Riordan, filed February 5, 2010. The four ERISA class action complaints,

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY
	3 Months Ended Mar. 31, 2010
STOCKHOLDERS' EQUITY.
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 March 31, 2010 2009 Net income(loss) $ 541.6 $ (74.5 ) Other comprehensive income (loss): Pension liability adjustment 6.7 1.1 Equity securities adjustment 19.7 - Translation adjustment (108.7 ) (70.1 ) Derivative hedging adjustment 4.7 (5.4 ) Comprehensive income (loss) 464.0 (148.9 ) Comprehensive income attributable to noncontrolling interest (1.7 ) (0.4 ) Comprehensive income (loss) attributable to Terex Corporation $ 462.3 $ (149.3 ) During the three months ended March 31, 2010, the Company purchased 29% of the noncontrolling interest in one of its consolidated subsidiaries in the Construction segment.The result of the transaction was a decrease in Noncontrolling interest of $0.7 million and a decrease in Additional paid-in capital of $12.3 million in the Condensed Consolidated Balance Sheet as of March 31, 2010. During the first quarter of 2010, the Company granted 1.9 million shares of restricted stock to its employees with a weighted average grant date fair value of $20.12 per share.Approximately 63% of these restricted stock awards vest ratably over a five-year period.Approximately 35% of the shares granted are based on performance targets containing a market condition.The Company used the Monte Carlo method to determine grant date fair values of $16.17-$19.08 per share and a derived service period of four years 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 yields 0.00% Expected volatility 59.04% Risk free interest rate 3.04% Expected life (in years) 4 During the three months ended March 31, 2010, the Company issued 41 thousand shares of its outstanding Common Stock to a deferred compensation plan under a Rabbi Trust.

CONSOLIDATING FINANCIAL STATEME

CONSOLIDATING FINANCIAL STATEMENTS
	3 Months Ended Mar. 31, 2010
CONSOLIDATING FINANCIAL STATEMENTS
CONSOLIDATING FINANCIAL STATEMENTS	NOTE P CONSOLIDATING FINANCIAL STATEMENTS On November 25, 2003, the Company sold and issued $300 million aggregate principal amount of the 7-3/8% Notes.As of December 31, 2008, 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., 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, Terex Advance Mixer, Inc., Terex Aerials, Inc., Terex Financial Services, 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. TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF INCOME THREE MONTHS ENDED MARCH 31, 2010 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net sales $ 39.1 $ 313.1 $ 691.3 $ (107.6 ) $ 935.9 Cost of goods sold (39.3 ) (298.4 ) (607.3 ) 107.6 (837.4 ) Gross profit (0.2 ) 14.7 84.0 - 98.5 Selling, general administrative expenses (20.3 ) (44.4 ) (100.3 ) - (165.0 ) Loss from operations (20.5 ) (29.7 ) (16.3 ) - (66.5 ) Interest income 0.3 0.1 0.7 - 1.1 Interest expense (26.6 ) (1.8 ) (7.5 ) - (35.9 ) Income from subsidiaries 616.3 - - (616.3 ) - Other income (expense) - net (7.1 ) (0.3 ) (5.5 ) - (12.9 ) (Loss) income from continuing operations bef

Document and Entity Information

Document and Entity Information
Share data in Millions	3 Months Ended Mar. 31, 2010	Apr. 27, 2010
Document and Entity Information
Entity Registrant Name	TEREX CORP
Entity Central Index Key	0000097216
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		108.7
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1