DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION Document - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jun. 30, 2016 | |
Entity Information [Line Items] | |||
Entity Registrant Name | TEREX CORP | ||
Entity Central Index Key | 97,216 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 105.9 | ||
Entity Public Float | $ 2,156 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 4,443.1 | $ 5,021.7 | $ 5,484 |
Cost of goods sold | (3,730.7) | (4,050.5) | (4,432.5) |
Gross profit | 712.4 | 971.2 | 1,051.5 |
Selling, general and administrative expenses | (684.2) | (647.5) | (651.5) |
Goodwill, Impairment Loss | 0 | 0 | |
Income (loss) from operations | (147.8) | 323.7 | 400 |
Other income (expense) | |||
Interest income | 4.3 | 3.8 | 6 |
Interest expense | (102) | (108.1) | (122.7) |
Other income (expense) – net | (25.2) | (23.7) | (4.7) |
Income (loss) from continuing operations before income taxes | (270.7) | 195.7 | 278.6 |
(Provision for) benefit from income taxes | 77.4 | (67.5) | (26.6) |
Income (loss) from continuing operations | (193.3) | 128.2 | 252 |
Income (loss) from discontinued operations – net of tax | 14.3 | 17.4 | 8.9 |
Gain (loss) on disposition of discontinued operations – net of tax | 3.5 | 3.4 | 58.6 |
Net income (loss) | (175.5) | 149 | 319.5 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.3 | 0.2 | 1.5 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (0.9) | (3.3) | (2) |
Net income (loss) attributable to Terex Corporation | (176.1) | 145.9 | 319 |
Amounts attributable to Terex Corporation common stockholders: | |||
Income (loss) from continuing operations | (193) | 128.4 | 253.5 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 13.4 | 14.1 | 6.9 |
Gain (loss) on disposition of discontinued operations – net of tax | 3.5 | 3.4 | 58.6 |
Net income (loss) attributable to Terex Corporation | $ (176.1) | $ 145.9 | $ 319 |
Basic Earnings (Loss) per Share Attributable to Terex Corporation Common Stockholders: | |||
Income (loss) from continuing operations | $ (1.79) | $ 1.20 | $ 2.31 |
Income (loss) from discontinued operations – net of tax | 0.13 | 0.13 | 0.06 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.03 | 0.03 | 0.54 |
Net income (loss) attributable to Terex Corporation (in dollars per share) | (1.63) | 1.36 | 2.91 |
Diluted Earnings (Loss) per Share Attributable to Terex Corporation Common Stockholders: | |||
Income (loss) from continuing operations | (1.79) | 1.17 | 2.22 |
Income (loss) from discontinued operations – net of tax | 0.13 | 0.13 | 0.06 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.03 | 0.03 | 0.51 |
Net income (loss) attributable to Terex Corporation (in dollars per share) | $ (1.63) | $ 1.33 | $ 2.79 |
Weighted average number of shares outstanding in per share calculation | |||
Basic (in shares) | 107.9 | 107.4 | 109.7 |
Diluted (in shares) | 107.9 | 109.6 | 114.2 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (loss) | $ (175.5) | $ 149 | $ 319.5 |
Other comprehensive income (loss), net of tax: | |||
Cumulative translation adjustment, net of (provision for) benefit from taxes | (123) | (247.3) | (237.7) |
Derivative hedging adjustment, net of (provision for) benefit from taxes | (4.7) | 3 | (3.4) |
Debt and equity securities adjustment, net of (provision for) benefit from taxes | 6.9 | (7.9) | 1.6 |
Pension liability adjustment: | |||
Net gain (loss), net of (provision for) benefit from taxes | (28.3) | 11.7 | (94) |
Amortization of actuarial (gain) loss, net of provision for (benefit from) taxes | 6.7 | 9.6 | 4.9 |
Foreign exchange and other effects, net of (provision for) benefit from taxes | 12.2 | 11 | 15.2 |
Total pension liability adjustment | (9.4) | 32.3 | (73.9) |
Other comprehensive income (loss) | (130.2) | (219.9) | (313.4) |
Comprehensive income (loss) | (305.7) | (70.9) | 6.1 |
Comprehensive loss (income) attributable to noncontrolling interest | (0.2) | (3) | (0.4) |
Comprehensive income (loss) attributable to Terex Corporation | $ (305.9) | $ (73.9) | $ 5.7 |
CONSOLIDATED STATEMENT OF COMP4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cumulative translation adjustment, tax portion | $ 14 | $ 11.7 | $ 0.9 |
Derivative hedging adjustment, tax portion | 1.2 | (0.4) | 1.2 |
Debt and equity securities adjustment, tax portion | (0.1) | 0.1 | 0 |
Pension - Net gain (loss), tax portion | 12.1 | 2.6 | 11.4 |
Pension - Amortization of actuarial (gain) loss, tax portion | (3.1) | (1.6) | (1.2) |
Pension - Foreign exchange and other effects, tax portion | $ (2.4) | $ (1.9) | $ (1.2) |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 428.5 | $ 371.2 |
Trade receivables (net of allowance of $16.5 and $20.4 at December 31, 2016 and 2015, respectively) | 512.5 | 703.3 |
Inventories | 853.8 | 1,063.6 |
Prepaid and other current assets | 172.8 | 252.5 |
Current assets held for sale | 732.9 | 749.6 |
Total current assets | 2,700.5 | 3,140.2 |
Non-current assets | ||
Property, plant and equipment – net | 304.6 | 371.9 |
Goodwill | 259.7 | 459.1 |
Intangible assets – net | 18.4 | 22.6 |
Other assets | 552.3 | 461.7 |
Non-current assets held for sale | 1,171.3 | 1,160.5 |
Total assets | 5,006.8 | 5,616 |
Current liabilities | ||
Notes payable and current portion of long-term debt | 13.8 | 66.4 |
Trade accounts payable | 522.7 | 560.7 |
Accrued compensation and benefits | 125.1 | 128.5 |
Accrued warranties and product liability | 61.2 | 51.5 |
Other current liabilities | 230.4 | 205.5 |
Current liabilities held for sale | 453.8 | 446 |
Total current liabilities | 1,407 | 1,458.6 |
Non-current liabilities | ||
Long-term debt, less current portion | 1,562 | 1,729.8 |
Retirement plans | 153.8 | 157 |
Other non-current liabilities | 50.7 | 60.1 |
Non-current liabilities held for sale | 312.1 | 298.5 |
Total liabilities | 3,485.6 | 3,704 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock, $.01 par value – authorized 300.0 shares; issued 129.6 and 128.8 shares at December 31, 2016 and 2015, respectively | 1.3 | 1.3 |
Additional paid-in capital | 1,300 | 1,273.3 |
Retained earnings | 1,897.9 | 2,104.6 |
Accumulated other comprehensive (loss) income | (779.4) | (649.6) |
Less cost of shares of common stock in treasury – 24.6 and 21.1 shares at December 31, 2016 and 2015, respectively | (935.1) | (852.2) |
Total Terex Corporation stockholders’ equity | 1,484.7 | 1,877.4 |
Noncontrolling interest | 36.5 | 34.6 |
Total stockholders’ equity | 1,521.2 | 1,912 |
Total liabilities, noncontrolling interest and stockholders’ equity | $ 5,006.8 | $ 5,616 |
CONSOLIDATED BALANCE SHEET Pare
CONSOLIDATED BALANCE SHEET Parenthetical - USD ($) shares in Millions, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Allowance for Doubtful Accounts Receivable, Current | $ 16.5 | $ 20.4 |
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 300 | 300 |
Common Stock, Shares, Issued | 129.6 | 128.8 |
Treasury Stock, Shares | 24.6 | 21.1 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury | Noncontrolling Interest |
Total stockholders' equity, Beginning of Period at Dec. 31, 2013 | $ 2,214.8 | $ 1.2 | $ 1,247.5 | $ 1,688.1 | $ (116.5) | $ (630.2) | $ 24.7 |
Shares oustanding, Beginning of Period (in shares) at Dec. 31, 2013 | 109.9 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 319.5 | $ 0 | 0 | 319 | 0 | 0 | 0.5 |
Other Comprehensive Income (Loss), Net of Tax | (313.4) | 0 | 0 | 0 | (313.3) | 0 | (0.1) |
Issuance of Common Stock | 21.7 | $ 0 | 21.7 | 0 | 0 | 0 | 0 |
Issuance of Common Stock (in shares) | 0.9 | ||||||
Compensation under Stock-based Plans - net | 10 | $ 0 | 8.8 | 0 | 0 | 1.2 | 0 |
Compensation under Stock-based Plans - net (in shares) | 0 | ||||||
Acquisition | 8.1 | $ 0 | 0 | 0 | 0 | 0 | 8.1 |
Dividends, Common Stock, Cash | (21.8) | 0 | 0.4 | (22.2) | 0 | 0 | 0 |
Purchase of noncontrolling interest | (26.9) | 0 | (26.9) | 0 | 0 | 0 | 0 |
Acquisition of Treasury Stock | (172.9) | $ 0 | 0 | 0 | 0 | (172.9) | 0 |
Acquisition of Treasury Stock (in shares) | (5.4) | ||||||
Shares outstanding, End of Period (in shares) at Dec. 31, 2014 | 105.4 | ||||||
Total stockholders' equity, End of Period at Dec. 31, 2014 | 2,039.1 | $ 1.2 | 1,251.5 | 1,984.9 | (429.8) | (801.9) | 33.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 149 | 0 | 0 | 145.9 | 0 | 0 | 3.1 |
Other Comprehensive Income (Loss), Net of Tax | (219.9) | 0 | 0 | 0 | (219.8) | 0 | (0.1) |
Issuance of Common Stock | 25.9 | $ 0.1 | 25.8 | 0 | 0 | 0 | 0 |
Issuance of Common Stock (in shares) | 4.3 | ||||||
Compensation under Stock-based Plans - net | (2.2) | $ 0 | (4.5) | 0 | 0 | 2.3 | 0 |
Compensation under Stock-based Plans - net (in shares) | 0 | ||||||
Dividends, Common Stock, Cash | (26.1) | $ 0 | 0.4 | (26.2) | 0 | 0 | (0.3) |
Purchase of noncontrolling interest | (1.2) | 0 | 0.1 | 0 | 0 | 0 | (1.3) |
Acquisition of Treasury Stock | $ (52.6) | $ 0 | 0 | 0 | 0 | (52.6) | 0 |
Acquisition of Treasury Stock (in shares) | (1.9) | (2) | |||||
Shares outstanding, End of Period (in shares) at Dec. 31, 2015 | 107.7 | ||||||
Total stockholders' equity, End of Period at Dec. 31, 2015 | $ 1,912 | $ 1.3 | 1,273.3 | 2,104.6 | (649.6) | (852.2) | 34.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (175.5) | 0 | 0 | (176.1) | 0 | 0 | 0.6 |
Other Comprehensive Income (Loss), Net of Tax | (130.2) | 0 | 0 | 0 | (129.8) | 0 | (0.4) |
Issuance of Common Stock | 22.1 | $ 0 | 22.1 | 0 | 0 | 0 | 0 |
Issuance of Common Stock (in shares) | 0.8 | ||||||
Compensation under Stock-based Plans - net | 5.4 | $ 0 | 4 | 0 | 0 | 1.4 | 0 |
Proceeds from Noncontrolling Interests | 2.9 | $ 0 | 0 | 0 | 0 | 0 | 2.9 |
Compensation under Stock-based Plans - net (in shares) | 0.1 | ||||||
Dividends, Common Stock, Cash | (31.2) | $ 0 | 0.6 | (30.6) | 0 | 0 | (1.2) |
Acquisition of Treasury Stock | $ (84.3) | $ 0 | 0 | 0 | 0 | (84.3) | 0 |
Acquisition of Treasury Stock (in shares) | (3.5) | (3.6) | |||||
Shares outstanding, End of Period (in shares) at Dec. 31, 2016 | 105 | ||||||
Total stockholders' equity, End of Period at Dec. 31, 2016 | $ 1,521.2 | $ 1.3 | $ 1,300 | $ 1,897.9 | $ (779.4) | $ (935.1) | $ 36.5 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ (175.5) | $ 149 | $ 319.5 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 96.7 | 132.4 | 165.5 |
(Gain) loss on disposition of discontinued operations | (3.5) | (3.4) | (58.6) |
Deferred taxes | (137.6) | (2.6) | (17.8) |
Goodwill Impairment | 176 | 11.3 | 0 |
Asset impairments | (70) | (25.4) | (3.9) |
(Gain) loss on sale of assets | (5.8) | (1) | 16.6 |
Stock-based compensation expense | 37.8 | 38.5 | 46.5 |
Inventory and other non-cash charges | 60.6 | 32.1 | 21.2 |
Changes in operating assets and liabilities (net of effects of acquisitions and divestitures): | |||
Trade receivables | 33 | 74.1 | (4.2) |
Inventories | 97.3 | (90.6) | (27.1) |
Trade accounts payable | (21) | 41.7 | 85.8 |
Income taxes payable / receivable | 16.9 | 16.1 | (68.3) |
Other assets and liabilities | 165.6 | (228.6) | (92.6) |
Foreign exchange and other operating activities, net | (43.5) | 18.5 | 20.3 |
Net cash provided by (used in) operating activities | 367 | 212.9 | 410.7 |
INVESTING ACTIVITIES | |||
Capital expenditures | (73) | (103.8) | (81.5) |
Acquisitions, net of cash acquired | (7) | (71.2) | (7.4) |
Other investments | 0 | 0 | (20) |
Proceeds (payments) from disposition of discontinued operations | 3.5 | (0.2) | 162.2 |
Proceeds from sale of assets | 67.2 | 3.1 | 43.3 |
Other investing activities, net | (2.5) | (0.6) | (1.6) |
Net cash provided by (used in) investing activities | (11.8) | (172.7) | 95 |
FINANCING ACTIVITIES | |||
Repayments of debt | (1,286.3) | (1,397.8) | (1,801.8) |
Proceeds from issuance of debt | 1,097.7 | 1,462.8 | 1,684.2 |
Proceeds from (purchase of) noncontrolling interest, net | 2.9 | (1.2) | (78.6) |
Share repurchases | (82.7) | (50.8) | (171.2) |
Dividends paid | (30) | (25.8) | (21.8) |
Other financing activities, net | (1.7) | (1.6) | (7.5) |
Net cash provided by (used in) financing activities | (300.1) | (14.4) | (396.7) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (19.7) | (37.5) | (38.9) |
Net Increase (Decrease) in Cash and Cash Equivalents | 35.4 | (11.7) | 70.1 |
Cash and Cash Equivalents at beginning of period | 466.5 | 478.2 | 408.1 |
Cash and Cash Equivalents at end of period | $ 501.9 | $ 466.5 | $ 478.2 |
SALE OF MHPS BUSINESS
SALE OF MHPS BUSINESS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
SALE OF MHPS BUSINESS | On May 16, 2016, Terex Corporation (“Terex”, the “Company”) agreed to sell its Material Handling and Port Solutions business (“MHPS”) business to Konecranes Plc, a Finnish public company limited by shares (“Konecranes”) by entering into a Stock and Asset Purchase Agreement, as amended (the “SAPA”), with Konecranes. As a result, the Company and Konecranes terminated the Business Combination Agreement and Plan of Merger (the “BCA”) announced on August 11, 2015, with no penalties incurred by either party. On January 4, 2017, the Company completed the disposition of its MHPS business to Konecranes (the “Disposition”), pursuant to the SAPA. In connection with the Disposition, the Company received 19.6 million newly issued Class B shares of Konecranes and approximately $832 million in cash after adjustments for estimated cash, debt and net working capital at closing and the divestiture of Konecranes’ Stahl Crane Systems business (“Stahl”), which was undertaken by Konecranes in connection with the Disposition. The final transaction consideration is subject to post-closing adjustments for the actual cash, debt and net working capital at closing, the 2016 performance of the MHPS business and Konecranes business, and the closing of the sale of Stahl. The Company and Konecranes entered into a Stockholders Agreement (the “Stockholders Agreement”), dated as of January 4, 2017, providing certain restrictions, including Terex’s commitment that it will not directly or indirectly sell or otherwise transfer the shares of Konecranes stock received by the Company for a period of three months, subject to certain exceptions, including transfers to affiliates. In addition, under the Stockholders Agreement, Terex is subject to certain standstill obligations for a four-year period, as well as some limited obligations following the initial four-year period. Terex also has customary registration rights pursuant to a registration rights agreement between Terex and Konecranes entered into on January 4, 2017 (the “Registration Rights Agreement”). In connection with the Disposition, Konecranes’ articles of association were amended to create a new class of B shares. On February 15, 2017, Terex sold approximately 7.5 million Konecranes shares for net proceeds of approximately $268 million . Following the sale of shares, Terex owns approximately 15.5% of the outstanding shares of Konecranes. Pursuant to the Stockholders Agreement and amended articles of association, Terex has nominated two members to the Board of Directors of Konecranes. Terex's initial Board representatives are David Sachs and Oren Shaffer. Also in connection with the Disposition, the Company and Konecranes entered into certain ancillary agreements, including a Transition Services Agreement, dated as of January 4, 2017, under which the parties will provide one another certain transition services to facilitate both the separation of the MHPS business being disposed from the businesses being retained by the Company and the interim operations of the MHPS business being acquired by Konecranes. SAPA and BCA Related Expenses Terex incurred transaction costs directly related to the SAPA of $14.2 million for the year ended December 31, 2016 , which amounts are recorded in Income (loss) from discontinued operations - net of tax in the Consolidated Statement of Income (Loss). The Company incurred transaction costs directly related to the BCA of $14.0 million and $13.8 million for the year ended December 31, 2016 and 2015 , respectively, which is recorded in Other income (expense) - net in the Consolidated Statement of Income (Loss). |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Principles of Consolidation . The Consolidated Financial Statements include the accounts of Terex Corporation and its majority-owned subsidiaries. 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. Reclassification. In conjunction with the adoption of new accounting standards, certain prior year debt issuance costs as well as certain other amounts have been reclassified to conform to the current year’s presentation, for all periods presented. Effective January 1, 2016, the Company reorganized the reportable segments to align with its new management reporting structure and business activities which resulted in the scrap material handling business in its former Construction segment being reassigned to its Materials Processing (“MP”) segment, certain non-operations related assets in the U.K. being reassigned from its former Construction segment to Corporate and Other category, and parts of its North America services business, which was formerly part of its Cranes segment being reassigned into its Aerial Work Platforms (“AWP”) and its former MHPS segments. Historical results have been reclassified to give effect to these changes. Effective as of June 30, 2016, further adjustments were made to the Company’s reportable segments as a result of definitive agreements to sell portions of its business and reorganize the management structure of other portions of its business, as discussed below. On May 16, 2016, the Company entered into an agreement to sell its MHPS business to Konecranes. As a result, the former MHPS segment is reported in discontinued operations in the Consolidated Statement of Income (Loss) for all periods presented, and in assets and liabilities held for sale in the Consolidated Balance Sheet at December 31, 2016 and 2015, and is no longer a reportable segment. During June and July of 2016, the Company entered into agreements to sell certain portions of its former Construction segment. As a result, concrete mixer trucks and concrete paver product lines from the former Construction segment have been reassigned to the Company’s MP segment and remaining product lines within the former Construction segment, such as loader backhoes and site dumpers, have been reassigned to the Corporate and Other category, as a result of changes in management responsibilities and reporting associated with these product lines. The effect of these changes has been shown in all periods presented. On May 30, 2014, the Company sold its truck business, which was consolidated in its former Construction segment, to Volvo Construction Equipment for approximately $160 million . As a result, reporting of the truck business has been included in discontinued operations for all periods presented. See Note A - “Sale of MHPS Business”, Note C - “Business Segment Information”, Note E - “Discontinued Operations and Assets and Liabilities Held for Sale” and Note L - “Goodwill and Intangible Assets, Net” for further information. Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. Cash and Cash Equivalents. Cash equivalents consist of highly liquid investments with original maturities of three months or less. The carrying amount of cash and cash equivalents approximates its fair value. Cash and cash equivalents at December 31, 2016 and 2015 include $6.0 million and $18.0 million , respectively, which were not immediately available for use. These consist primarily of cash balances held in escrow to secure various obligations of the Company. Inventories. Inventories are stated at the lower of cost or market (“LCM”) value. Cost is determined by the average cost and first-in, first-out (“FIFO”) methods (approximately 30% and 70% , respectively). In valuing inventory, the Company is required to make assumptions regarding the level of reserves required to value potentially obsolete or over-valued items at the lower of cost or market. These assumptions require the Company to analyze aging of and forecasted demand for its inventory, forecast future product sales prices, pricing trends and margins, and to make judgments and estimates regarding obsolete or excess inventory. Future product sales prices, pricing trends and margins are based on the best available information at that time including actual orders received, negotiations with the Company’s customers for future orders, including their plans for expenditures, and market trends for similar products. The Company’s judgments and estimates for excess or obsolete inventory are based on analysis of actual and forecasted usage. The valuation of used equipment taken in trade from customers requires the Company to use the best information available to determine the value of the equipment to potential customers. This value is subject to change based on numerous conditions. Inventory reserves are established taking into account age, frequency of use, or sale, and in the case of repair parts, the installed base of machines. While calculations are made involving these factors, significant management judgment regarding expectations for future events is involved. Future events that could significantly influence the Company’s judgment and related estimates include general economic conditions in markets where the Company’s products are sold, new equipment price fluctuations, actions of the Company’s competitors, including introduction of new products and technological advances, as well as new products and design changes the Company introduces. The Company makes adjustments to its inventory reserves based on the identification of specific situations and increases its inventory reserves accordingly. As further changes in future economic or industry conditions occur, the Company may revise estimates that were used to calculate its inventory reserves. At December 31, 2016 and 2015 , reserves for LCM, excess and obsolete inventory totaled $83.3 million and $76.8 million , respectively. If actual conditions are less favorable than those the Company has projected, the Company will increase its reserves for LCM, excess and obsolete inventory accordingly. Any increase in the Company’s reserves will adversely impact its results of operations. Establishment of a reserve for LCM, excess and obsolete inventory establishes a new cost basis in the inventory. Such reserves are not reduced until the product is sold. Shipping and handling costs for product shipments to customers are recorded in Cost of goods sold (“COGS”). Debt Issuance Costs. Debt issuance costs incurred in securing the Company’s financing arrangements are capitalized and amortized over the term of the associated debt. As a result of the Company’s January 1, 2016 adoption of Accounting Standards Update (“ASU”) 2015-03, “Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, (“ASU 2015-03”) on a retrospective basis, debt issuance costs related to senior notes and term loans are presented in the balance sheet as a direct deduction from the carrying amount of the borrowing, consistent with debt discounts. Upon adoption, $21.1 million was reclassified from Other assets to Long-term debt, less current portion at December 31, 2015. Unamortized costs related to securing our revolving line of credit are presented in Other assets. Capitalized debt issuance costs related to debt that is extinguished early are charged to expense at the time of retirement. Debt issuance costs were $21.2 million and $26.3 million (net of accumulated amortization of $28.9 million and $23.5 million ) at December 31, 2016 and 2015 , respectively. Intangible Assets. Intangible assets include purchased patents, trademarks, customer relationships and other specifically identifiable assets and are amortized on a straight-line basis over the respective estimated useful lives, which range from one to fifty-seven years. Intangible assets are reviewed for impairment when circumstances warrant. Goodwill. Goodwill, representing the difference between total purchase price and fair value of assets (tangible and intangible) and liabilities at date of acquisition, is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which recorded value of such assets and liabilities exceed fair value. The Company selected October 1 as the date for the required annual impairment test. Goodwill is tested for impairment at the reporting unit level, which is defined as an operating segment or a component of an operating segment that constitutes a business for which discrete financial information with similar economic characteristics is available and the operating results are regularly reviewed by the Company’s chief operating decision maker. AWP, Cranes, and MP operating segments, plus the Material Handling (“MH”) business and Port Solutions (“PS”) business of our former MHPS segment, which is a discontinued operation, comprise the five reporting units for goodwill impairment testing purposes. We may elect to perform a qualitative analysis for our reporting units to determine whether it is more likely than not that fair value of the reporting unit is greater than its carrying value. If the qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we elect not to perform a qualitative analysis, we perform a quantitative analysis to determine whether a goodwill impairment exists. The quantitative goodwill impairment analysis is a two-step process. The first step used to identify potential impairment involves comparing each reporting unit’s estimated fair value to its carrying value, including goodwill. The Company uses an income approach, along with other relevant market information, derived from a discounted cash flow model to estimate fair value of its reporting units. Aggregate fair value of the Company’s reporting units is compared to the Company’s market capitalization on the valuation date to assess its reasonableness. Initial recognition of goodwill, as well as the annual review of carrying value of goodwill, requires that the Company develop estimates of future business performance. These estimates are used to derive expected cash flows and include assumptions regarding future sales levels and 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 Company’s weighted average cost of capital by reporting unit. Cost of capital is based on assumptions about interest rates as well as a risk-adjusted rate of return required by the Company’s equity investors. Changes in these estimates can impact present value of expected cash flows that is used in determining fair value of a given business. The second step of the process involves calculation of an implied fair value of goodwill for each reporting unit for which step one indicated impairment. Implied fair value of goodwill is determined by measuring excess of estimated fair value of the reporting unit over estimated fair values of individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If implied fair value of goodwill exceeds carrying value of goodwill assigned to the reporting unit, there is no impairment. If carrying value of goodwill assigned to a reporting unit exceeds implied fair value of goodwill, an impairment loss is recorded for the excess. An impairment loss cannot exceed carrying value of goodwill assigned to a reporting unit and the subsequent reversal of goodwill impairment losses is not permitted. As a result of the goodwill impairment tests performed as of October 1, 2016 , 2015 and 2014 , we recorded an impairment charge of $176.0 million in our Cranes segment during the year ended December 31, 2016 and an impairment charge of $11.3 million in our former MHPS segment, which is a discontinued operation, during the year ended December 31, 2015. There were no goodwill impairment charges recorded during 2014. See Note E – “Discontinued Operations and Assets and Liabilities Held for Sale” and Note L – “Goodwill and Intangible Assets, Net”. Property, Plant and Equipment . Property, plant and equipment are stated at cost. Expenditures for major renewals and improvements are capitalized while expenditures for maintenance and repairs not expected to extend the life of an asset beyond its normal useful life are charged to expense when incurred. Plant and equipment are depreciated over the estimated useful lives ( 1 - 40 years and 2 - 20 years, respectively) of the assets under the straight-line method of depreciation for financial reporting purposes and both straight-line and other methods for tax purposes. Impairment of Long-Lived Assets. The Company’s policy is to assess the realizability of its long-lived assets, including definite-lived intangible assets, and to evaluate such assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (or group of assets) may not be recoverable. Impairment is determined to exist if estimated future undiscounted cash flows is less than carrying value. If an impairment is indicated, the assets are written down to their fair value, which is typically determined by a discounted cash flow analysis. Future cash flow projections include assumptions for future sales levels and the level of working capital needed to support the assets. The Company uses data developed by business segment management as well as macroeconomic data in making these calculations. The amount of any impairment then recognized would be calculated as the difference between estimated fair value and carrying value of the asset. Included in Selling, general & administrative expenses (“SG&A”) are approximately $41.2 million of asset impairments for the year ended December 31, 2016 and $1.4 million for the year ended December 31, 2015 . The impairment charges recognized during 2016 include a $16.6 million charge in Corporate and Other to write off information technology assets related to cessation of implementation efforts in several locations and $17.4 million in the Company’s Cranes segment for restructuring and facility exit activities. The Company also recorded a $20.5 million impairment charge in Other income (expense) - net to recognize impairment of a cost-basis investment. See Note N – “Restructuring and Other Charges” for information on asset impairments recorded as part of restructuring activities. Accounts Receivable and Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company determines the allowance based on historical customer review and current financial conditions. The Company reviews its allowance for doubtful accounts at least quarterly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis by type of receivable. Account balances are charged off against the allowance when the Company determines it is probable the receivable will not be recovered. There can be no assurance that the Company’s historical accounts receivable collection experience will be indicative of future results. The Company has off-balance sheet credit exposure related to guarantees provided to financial institutions as disclosed in Note S – “Litigation and Contingencies.” Substantially all receivables were trade receivables at December 31, 2016 and 2015 . Pursuant to terms of the Company’s trade accounts receivable factoring arrangements, certain of the Company’s subsidiaries may sell their trade accounts receivable. In certain cases, the Company continues to service such accounts. These trade receivables qualify for sales treatment under Accounting Standards Codification (“ASC”) 860, “Transfers and Servicing” (“ASC 860”) and accordingly, the proceeds are included in net cash provided by operating activities. The gross amount of trade receivables sold for years ended December 31, 2016 and 2015 totaled $620.4 million and $54.1 million , respectively. There were no trade receivables sold for the year ended December 31, 2014. The factoring discount paid upon sale is recorded as interest expense in the Consolidated Statement of Income (Loss). As of December 31, 2016, $64.3 million of receivables qualifying for sale treatment were outstanding and will continue to be serviced by us. Revenue Recognition. Revenue and related costs are generally recorded when products are shipped and invoiced to either independently owned and operated dealers or to end-customers. Revenue generated in the United States is recognized when title and risk of loss pass from the Company to its customers which generally occurs upon shipment depending upon the shipping terms negotiated. The Company also has a policy which requires it to meet certain criteria in order to recognize revenue, including satisfaction of the following requirements: a) Persuasive evidence that an arrangement exists; b) The price to the buyer is fixed or determinable; c) Collectability is reasonably assured; and d) The Company has no significant obligations for future performance. In the United States, the Company has the ability to enter into a security agreement and receive a security interest in the product by filing an appropriate Uniform Commercial Code (“UCC”) financing statement. However, a significant portion of the Company’s revenue is generated outside of the United States. In many countries outside of the United States, as a matter of statutory law, a seller retains title to a product until payment is made. The laws do not provide for a seller’s retention of a security interest in goods in the same manner as established in the UCC. In these countries, the Company retains title to goods delivered to a customer until the customer makes payment so that the Company can recover the goods in the event of customer default on payment. In these circumstances, where the Company only retains title to secure its recovery in the event of customer default, the Company also has a policy requiring it to meet certain criteria in order to recognize revenue, including satisfaction of the following requirements: a) Persuasive evidence that an arrangement exists; b) Delivery has occurred or services have been rendered; c) The price to the buyer is fixed or determinable; d) Collectability is reasonably assured; e) The Company has no significant obligations for future performance; and f) The Company is not entitled to direct the disposition of the goods, cannot rescind the transaction, cannot prohibit the customer from moving, selling, or otherwise using the goods in the ordinary course of business and has no other rights of holding title that rest with a titleholder of property that is subject to a lien under the UCC. In circumstances where the sales transaction requires acceptance by the customer for items such as testing on site, installation, trial period or performance criteria, revenue is not recognized unless the following criteria have been met: a) Persuasive evidence that an arrangement exists; b) Delivery has occurred or services have been rendered; c) The price to the buyer is fixed or determinable; d) Collectability is reasonably assured; and e) The customer has given their acceptance, the time period has elapsed or the Company has otherwise objectively demonstrated that the criteria specified in the acceptance provisions have been satisfied. In addition to performance commitments, the Company analyzes factors such as the reason for the purchase to determine if revenue should be recognized. This analysis is done before the product is shipped and includes the evaluation of factors that may affect the conclusion related to the revenue recognition criteria as follows: a) Persuasive evidence that an arrangement exists; b) Delivery has occurred or services have been rendered; c) The price to the buyer is fixed or determinable; and d) Collectability is reasonably assured. Revenue from sales-type leases is recognized at the inception of the lease. Income from operating leases is recognized ratably over the term of the lease. The Company routinely sells equipment subject to operating leases and related lease payments. If the Company does not retain a substantial risk of ownership in the equipment, the transaction is recorded as a sale. If the Company does retain a substantial risk of ownership, the transaction is recorded as a borrowing, the operating lease payments are recognized as revenue over the term of the lease and the debt is amortized over a similar period. The Company, from time to time, issues buyback guarantees in conjunction with certain sales agreements. These primarily relate to trade value agreements (“TVAs”) in which a customer may trade in equipment in the future at a stated price/credit if the customer meets certain conditions. The trade-in price/credit is determined at the time of the original sale of equipment. In conjunction with the trade-in, these conditions include a requirement to purchase new equipment at fair market value at the time of trade-in, which fair value is required to be of equal or greater value than the original equipment cost. Other conditions also include the general functionality and state of repair of the machine. The Company has concluded that any credit provided to customers under a TVA/buyback guarantee, which is expected to be equal to or less than the fair value of the equipment returned on the trade-in date, is a guarantee to be accounted for in accordance with ASC 460, “Guarantees” (“ASC 460”). The original sale of equipment, accompanied by a buyback guarantee, is a multiple element transaction wherein the Company offers its customer the right, after some period of time, for a limited period of time, to exchange purchased equipment for a fixed price trade-in credit toward another of our products. The fixed price trade-in credit is accounted for under the guidance provided by ASC 460. Pursuant to this right, the Company has agreed to make a payment (in the form of a trade-in credit) to the customer contingent upon the customer exercising its right to trade in the original purchased equipment. Under the guidance of ASC 460, the Company records the fixed price trade-in credit at its fair value. Accordingly, as noted above, the Company has accounted for the trade-in credit as a separate deliverable in a multiple element arrangement. When a sales transaction includes multiple deliverables, such as sales of multiple products or sales of products and services that are delivered over multiple reporting periods, the multiple deliverables are evaluated to determine the units of accounting, and the entire fee from the arrangement is allocated to each unit of accounting based on the relative selling price. The selling price of a unit of accounting is determined using a selling price hierarchy. Vendor-specific objective evidence (“VSOE”) is established based upon the price charged for products and services that are sold separately in standalone transactions. If VSOE cannot be established, third-party evidence (“TPE”) is evaluated based on competitor prices for similar deliverables when sold separately. If neither VSOE or TPE is available, management's best estimate of selling price is established based upon the price at which the Company would sell the product on a standalone basis taking into consideration factors including, but not limited to, internal costs, gross margin objectives, pricing practices and market conditions. Revenue is recognized when revenue recognition criteria for each unit of accounting are met. Guarantees . The Company records a liability for the estimated fair value of guarantees issued pursuant to ASC 460. The Company recognizes a loss under a guarantee when its obligation to make payment under the guarantee is probable and the amount of the loss can be estimated. A loss would be recognized if the Company’s payment obligation under the guarantee exceeds the value it can expect to recover to offset such payment, primarily through the sale of the equipment underlying the guarantee. Accrued Warranties . The Company records accruals for potential warranty claims based on its claim experience. The Company’s products are typically sold with a standard warranty covering defects that arise during a fixed period. Each business provides a warranty specific to the products it offers. The specific warranty offered by a business is a function of customer expectations and competitive forces. Warranty length is generally a fixed period of time, a fixed number of operating hours, or both. A liability for estimated warranty claims is accrued at the time of sale. The non-current portion of the warranty accrual is included in Other non-current liabilities in the Company’s Consolidated Balance Sheet. The liability is established using historical warranty claims experience for each product sold. Historical claims experience may be adjusted for known design improvements or for the impact of unusual product quality issues. Warranty reserves are reviewed quarterly to ensure critical assumptions are updated for known events that may affect the potential warranty liability. The following table summarizes the changes in the consolidated product warranty liability (in millions): Balance as of December 31, 2014 $ 57.2 Accruals for warranties issued during the period 63.2 Changes in estimates (1.3 ) Settlements during the year (64.0 ) Foreign exchange effect/other (2.1 ) Balance as of December 31, 2015 53.0 Accruals for warranties issued during the period 72.4 Changes in estimates (2.3 ) Settlements during the year (58.1 ) Foreign exchange effect/other (5.2 ) Balance as of December 31, 2016 $ 59.8 Accrued Product Liability. The Company records accruals for product liability claims when deemed probable and estimable based on facts and circumstances, and prior claims experience. Accruals for product liability claims are valued based upon the Company’s prior claims experience, including consideration of the jurisdiction, circumstances of the accident, type of loss or injury, identity of plaintiff, other potential responsible parties, analysis of outside legal counsel, analysis of internal product liability counsel and the experience of the Company’s director of product safety. Actual product liability costs could be different due to a number of variables such as the decisions of juries or judges. Defined Benefit Pension and Other Post-retirement Benefits. The Company provides post-retirement benefits to certain former salaried and hourly employees and certain hourly employees covered by bargaining unit contracts that provide such benefits. The Company accounts for these benefits under ASC 715, “Compensation-Retirement Benefits” (“ASC 715”). ASC 715 requires balance sheet recognition of the overfunded or underfunded status of pension and post-retirement benefit plans. Under ASC 715, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in Accumulated other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. See Note Q – “Retirement Plans and Other Benefits.” Deferred Compensation. The Company maintains a Deferred Compensation Plan, which is described more fully in Note Q – “Retirement Plans and Other Benefits.” The Company’s common stock, par value $0.01 per share (“Common Stock”) held in a rabbi trust pursuant to the Company’s Deferred Compensation Plan, is treated in a manner similar to treasury stock and is recorded at cost within Stockholders’ equity as of December 31, 2016 and 2015 . The plan obligations for participant deferrals in the Company’s Common Stock are classified as Additional paid-in capital within Stockholders’ equity. The total of the Company’s Common Stock required to settle this deferred compensation obligation is included in the denominator in both basic and diluted earnings per share calculations. Stock-Based Compensation . At December 31, 2016 , the Company had stock-based employee compensation plans, which are described more fully in Note R – “Stockholders’ Equity.” The Company accounts for those plans under the recognition and measurement principles of ASC 718, “Compensation–Stock Compensation” (“ASC 718”). ASC 718 requires that expense resulting from all share-based payment transactions be recognized in the financial statements at fair value. Foreign Currency Translation. Assets and liabilities of the Company’s non-U.S. operations are translated at year-end exchange rates. Income and expenses are translated at average exchange rates during the year. For operations whose functional currency is the local currency, translation adjustments are recorded in the Accumulated other comprehensive income component of Stockholders’ equity. Gains or losses resulting from foreign currency transactions are recorded in the accounts based on the underlying transaction. Derivatives. Derivative financial instruments are recorded in the Consolidated Balance Sheet at their fair value as either assets or liabilities. Changes in the fair value of derivatives are recorded each period in earnings or Accumulated other comprehensive income, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in Accumulated other comprehensive income are included in earnings in the periods in which earnings are affected by the hedged item. See Note M – “Derivative Financial Instruments.” Environmental Policies. Environmental expenditures that relate to current operations are either expensed or capitalized depending on the nature of the expenditure. Expenditures relating to conditions caused by past operations that do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial actions are probable and the costs can be reasonably estimated. Such amounts were not material at December 31, 2016 and 2015 . Research, Development and Engineering Costs. Research, development and engineering costs are expensed as incurred. Such costs incurred in the development of new products or significant improvements to existing products are included in SG&A. Research and development costs were $86.2 million , $89.7 million and $102.3 million during 2016 , 2015 and 2014 , respectively. Income Taxes . The Company accounts for income taxes using the asset and liability method. This method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial statement carrying amounts and the tax bases of assets and liabilities. See Note D – “Income Taxes.” Earnings Per Share. Basic earnings (loss) per share is computed by dividing Net income (loss) attributable to Terex Corporation for the period by the weighted average number of shares of Common Stock outstanding. Diluted earnings (loss) per share is computed by dividing Net income (loss) attributable to Terex Corporation for the period by the weighted average number of shares of Common Stock outstanding and potential dilutive common shares. See Note F – “Earnings Per Share.” Fair Value Measurements. Assets and liabilities measured at fair value on a recurring basis under the provisions of ASC 820, “Fair Value Measurement and Disclosure” (“ASC 820”), include interest rate swap and foreign currency forward contracts discussed in Note M – “Derivative F |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Terex is a global manufacturer of lifting and material processing products and services that deliver lifecycle solutions to maximize customer return on investment. The Company delivers lifecycle solutions to a broad range of industries, including the construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining industries. Historically, the Company operated in five reportable segments: (i) AWP; (ii) Cranes; (iii) MHPS; (iv) MP; and (v) Construction. Subsequent to the reorganization discussed in Note B - “Basis of Presentation”, the Company now operates in three reportable segments: (i) AWP; (ii) Cranes; and (iii) MP. The AWP segment designs, manufactures, services and markets aerial work platform equipment, telehandlers and light towers. Customers use these products to construct and maintain industrial, commercial and residential buildings and facilities and for other commercial operations, as well as in a wide range of infrastructure projects. The Cranes segment designs, manufactures, services, refurbishes and markets a wide variety of cranes, including mobile telescopic cranes, lattice boom crawler cranes, tower cranes, and utility equipment, as well as their related components and replacement parts. Customers use these products primarily for construction, repair and maintenance of commercial buildings, manufacturing facilities, construction and maintenance of utility and telecommunication lines, tree trimming and certain construction and foundation drilling applications and a wide range of infrastructure projects. The MP segment designs, manufactures and markets materials processing and specialty equipment, including crushers, washing systems, screens, apron feeders, material handlers, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, and their related components and replacement parts. Customers use these products in construction, infrastructure and recycling projects, in various quarrying and mining applications, as well as in landscaping and biomass production industries, material handling applications, and in building roads and bridges. The Company assists customers in their rental, leasing and acquisition of its products through Terex Financial Services (“TFS”). TFS uses its equipment financing experience to provide financing solutions to customers who purchase the Company’s equipment. TFS is included in the Corporate and Other category. None of our customers individually accounted for more than 10% of consolidated net sales in 2016 . The results of businesses acquired are included from the dates of their respective acquisitions. Included in Corporate and Other / Eliminations are the eliminations among the three segments, various construction product lines and on-book financing activities of TFS, as well as general and corporate items. Business segment information is presented below (in millions): Year Ended December 31, 2016 2015 2014 Net Sales AWP $ 1,977.8 $ 2,246.0 $ 2,403.0 Cranes 1,274.5 1,566.5 1,656.9 MP 944.5 940.1 938.9 Corporate and Other / Eliminations 246.3 269.1 485.2 Total $ 4,443.1 $ 5,021.7 $ 5,484.0 Income (loss) from Operations AWP $ 177.4 $ 270.2 $ 304.9 Cranes (321.7 ) 56.3 83.8 MP 86.3 68.6 65.6 Corporate and Other / Eliminations (89.8 ) (71.4 ) (54.3 ) Total $ (147.8 ) $ 323.7 $ 400.0 Depreciation and Amortization AWP $ 19.9 $ 15.3 $ 12.1 Cranes 21.5 21.0 28.3 MP 6.9 6.9 7.7 Corporate 26.0 33.4 51.0 Total $ 74.3 $ 76.6 $ 99.1 Capital Expenditures AWP $ 17.1 $ 38.0 $ 28.6 Cranes 13.2 13.8 14.0 MP 7.5 20.7 5.8 Corporate 20.3 9.0 9.9 Total $ 58.1 $ 81.5 $ 58.3 Sales between segments are generally priced to recover costs plus a reasonable markup for profit, which is eliminated in consolidation. December 31, 2016 2015 Identifiable Assets AWP $ 1,659.8 $ 1,701.2 Cranes 1,618.0 1,822.3 MP 1,104.9 1,073.4 Corporate and Other / Eliminations (1,280.1 ) (891.0 ) Assets held for sale 1,904.2 1,910.1 Total $ 5,006.8 $ 5,616.0 Geographic Net Sales information is presented below (in millions): Year Ended December 31, 2016 2015 2014 Net Sales United States $ 2,131.4 $ 2,420.1 $ 2,552.7 United Kingdom 333.2 402.3 346.2 Germany 237.1 243.7 310.6 Other European countries 726.7 714.3 848.3 All other 1,014.7 1,241.3 1,426.2 Total $ 4,443.1 $ 5,021.7 $ 5,484.0 December 31, 2016 2015 Long-lived Assets United States $ 181.1 $ 203.8 United Kingdom 34.9 41.2 Germany 32.4 64.0 Other European countries 14.8 17.5 All other 41.4 45.4 Total $ 304.6 $ 371.9 The Company attributes sales to unaffiliated customers in different geographical areas based on the location of the customer. Long-lived assets consist of net fixed assets, which can be attributed to the specific geographic regions. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income (loss) from continuing operations before income taxes are as follows (in millions): Year Ended December 31, 2016 2015 2014 United States $ (29.9 ) $ 212.2 $ 304.3 Foreign (240.8 ) (16.5 ) (25.7 ) Income (loss) from continuing operations before income taxes $ (270.7 ) $ 195.7 $ 278.6 Income (loss) before income taxes including Income (loss) from discontinued operations and Gain (loss) from disposition of discontinued operations attributable to the Company was $(242.0) million , $231.1 million and $365.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The major components of the Company’s provision for (benefit from) income taxes on continuing operations before income taxes are summarized below (in millions): Year Ended December 31, 2016 2015 2014 Current: Federal $ 31.5 $ 49.2 $ 1.6 State 6.2 3.1 7.6 Foreign 38.2 15.6 30.6 Current income tax provision (benefit) 75.9 67.9 39.8 Deferred: Federal (27.0 ) (3.7 ) 9.9 State (1.4 ) — (0.7 ) Foreign (124.9 ) 3.3 (22.4 ) Deferred income tax (benefit) provision (153.3 ) (0.4 ) (13.2 ) Total provision for (benefit from) income taxes $ (77.4 ) $ 67.5 $ 26.6 The elimination of tax from intercompany transactions is included in current tax expense. Including discontinued operations and disposition of discontinued operations, the total (benefit from) provision for income taxes was $(66.5) million , $82.1 million and $45.5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Deferred tax assets and liabilities result from differences in the bases of assets and liabilities for tax and financial reporting purposes. The tax effects of the basis differences and loss carry forwards as of December 31, 2016 and 2015 for continuing operations are summarized below for major balance sheet captions (in millions): 2016 2015 Property, plant and equipment $ (16.8 ) $ (36.4 ) Intangibles (7.3 ) (27.6 ) Inventories 18.1 21.5 Accrued warranties and product liability 15.1 13.6 Loss carry forwards 214.3 215.8 Retirement plans 32.5 32.2 Accrued compensation and benefits 40.1 38.4 Investments 2.3 1.0 Currency translation adjustments (0.6 ) (0.3 ) Credit carry forwards 11.9 1.7 Other 20.8 31.3 Deferred tax assets valuation allowance (148.6 ) (215.1 ) Net deferred tax assets (liabilities) $ 181.8 $ 76.1 Deferred tax assets for continuing operations total $331.3 million before valuation allowances of $148.6 million , partially offset by deferred tax liabilities for continuing operations of $0.9 million at December 31, 2016 . There were $19.7 million total deferred tax assets, partially offset by total deferred tax liabilities of $3.7 million for discontinued operations at December 31, 2016 , and $2.9 million total deferred tax assets, partially offset by total deferred tax liabilities of $17.1 million for discontinued operations at December 31, 2015 . 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 realization of its deferred tax assets, including tax loss carry forwards. Historical information is supplemented by currently available information about future tax years. Realization of deferred tax assets requires sufficient taxable income of the appropriate character. To the extent estimates of future taxable income decrease or do not materialize, additional valuation allowances may be required. The Company records a valuation allowance for each deferred tax asset for which realization is not assessed as more likely than not. The valuation allowance for deferred tax assets as of December 31, 2016 and 2015 was $148.6 million and $215.1 million , respectively. The net change in the total valuation allowance for the years ended December 31, 2016 and 2015 was a decrease of $66.5 million and a decrease of $28.9 million , respectively. During the second quarter of 2016, the Company released the valuation allowances for its German and Italian subsidiaries due to its change in judgment regarding the realization of the deferred tax assets in Germany and Italy. The change in judgment was due to the Disposition, recent earnings history, and expected future income supporting the more likely than not assessment that the deferred tax assets will be realized. As of December 31, 2015, the Company determined that it was appropriate to retain its valuation allowance on deferred tax assets of its Italian subsidiaries, although it was reasonably possible that, in the near term, continuing improvement in operating performance and other positive evidence could change the Company’s assessment of the realizability of the Italian deferred tax assets resulting in the reversal of all, or part of, the related valuation allowance. The Company’s Provision for (benefit from) income taxes is different from the amount that would be provided by applying the statutory federal income tax rate to the Company’s Income (loss) from continuing operations before income taxes. The reasons for the difference are summarized as follows (in millions): Year Ended December 31, 2016 2015 2014 Tax at statutory federal income tax rate $ (94.7 ) $ 68.5 $ 97.5 State taxes (net of Federal benefit) 3.1 2.0 4.5 Change in valuation allowance (47.7 ) (22.3 ) 39.5 Foreign tax differential on income/losses of foreign subsidiaries (37.5 ) 12.2 (27.0 ) U.S. tax on multi-national operations 41.9 3.7 5.6 Change in foreign statutory rates 1.9 7.7 2.5 U.S. manufacturing and export incentives (2.0 ) (4.3 ) (6.2 ) Tax effect of dispositions 2.1 — (86.8 ) Impairment loss on goodwill and intangible assets 52.4 — — Other 3.1 — (3.0 ) Total provision for (benefit from) income taxes $ (77.4 ) $ 67.5 $ 26.6 For the year ended December 31, 2016, the effective tax rate was reduced due to tax expense associated with the Disposition, which changed expectations concerning the indefinite reinvestment of foreign earnings. The effective tax rate on gain (loss) on disposition of discontinued operations in 2014 differs from the statutory rate primarily due to the majority of gains from the sale of the truck business not being subject to tax. The Company received tax incentives in certain jurisdictions, some of which are expected to extend through 2020. The Company received no tax benefits in continuing operations ( $0.8 million of tax benefits in discontinued operations) for the year ended December 31, 2016, received $7.0 million and $0.8 million of tax benefits in continuing operations ( $1.2 million and $0.1 million of tax benefits in discontinued operations) for the years ended December 31, 2015 and 2014 , respectively. Except for a limited number of immaterial subsidiaries and joint ventures accounted for under the equity method, the Company does not provide for foreign income and withholding, U.S. Federal, or state income taxes or tax benefits on the financial reporting basis over the tax basis of its investments in foreign subsidiaries because such amounts are indefinitely reinvested to support operations and continued growth plans outside the U.S. As a result of the Disposition, the Company repatriated approximately $1 billion of foreign earnings that were previously intended to be permanently reinvested. At December 31, 2016 , the Company’s remaining unremitted earnings of its foreign subsidiary ownership chains that have positive retained earnings was approximately $251 million . The Company reviews its plan to indefinitely reinvest on a quarterly basis. In making its decision to indefinitely reinvest, the Company evaluates its plans of reinvestment, its ability to control repatriation and to mobilize funds without triggering basis differences, and the profitability of U.S. operations and their cash requirements and the need, if any, to repatriate funds. If the assessment of the Company with respect to earnings of foreign subsidiaries changes, deferred U.S. income taxes, foreign income taxes, and foreign withholding taxes may have to be accrued. At this time, determination of the unrecognized deferred tax liabilities for temporary differences related to the investment in foreign subsidiaries is not practicable. At December 31, 2016 , the Company has various state net operating loss carry forwards available to reduce future state taxable income and income taxes. These net operating loss carry forwards expire at various dates through 2036. In addition, the gross amount of the U.S. federal capital loss carryforward is $72.4 million which expires in 2019. At December 31, 2016 , the Company has approximately $529 million of loss carry forwards, consisting of $150 million in Germany, $130 million in Italy, $66 million in the United Kingdom, $47 million in China, $48 million in Switzerland, and $88 million in other countries, which are available to offset future taxable income. The majority of these tax loss carry forwards are available without expiration. In addition, the gross amount of the Australian capital loss carryforward is $27 million , and it has an unlimited carryforward period. The Company had total net income tax payments including discontinued operations of $52.8 million , $67.6 million and $124.1 million in 2016 , 2015 and 2014 , respectively. At December 31, 2016 and 2015 , Other current assets included net income tax receivable amounts of $22.6 million and $42.7 million respectively. The Company and its subsidiaries conduct business globally and file income tax returns in U.S. federal, state and foreign jurisdictions, as required. From a tax perspective, major jurisdictions where the Company is often subject to examination by tax authorities include Germany, Italy, the United Kingdom and the U.S. Currently, various entities of the Company are under audit in Germany, Italy, the U.S. and elsewhere. With few exceptions, including certain subsidiaries in Germany that are under audit, the statute of limitations for the Company and most of its subsidiaries has expired for tax years prior to 2011. The Company assesses uncertain tax positions for recognition, measurement and effective settlement. Where the Company has determined that its tax return filing position does not satisfy the more likely than not recognition threshold of ASC 740, “Income Taxes,” 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. The Company recognizes accrued interest and penalties, if any, related to income taxes as (Provision for) benefit from income taxes in its Consolidated Statement of Income (Loss). The following table summarizes the activity related to the Company’s total (including discontinued operations) unrecognized tax benefits (in millions). Amounts in 2014 have been adjusted to eliminate the impact of offsets, which are immaterial: Balance as of January 1, 2014 $ 88.4 Additions for current year tax positions 1.9 Additions for prior year tax positions 1.2 Reductions for prior year tax positions (10.9 ) Reductions for current year tax positions — Reductions for expiration of statute of limitations (2.4 ) Settlements (0.1 ) Acquired balances — Balance as of December 31, 2014 78.1 Additions for current year tax positions — Additions for prior year tax positions 1.7 Reductions for prior year tax positions (9.3 ) Reductions for current year tax positions — Reductions for expiration of statute of limitations (1.1 ) Settlements — Acquired balances — Balance as of December 31, 2015 69.4 Additions for current year tax positions — Additions for prior year tax positions 6.3 Reductions for prior year tax positions (3.1 ) Reductions for current year tax positions — Reductions for expiration of statute of limitations (5.0 ) Settlements (7.8 ) Acquired balances — Balance as of December 31, 2016 $ 59.8 As a result of the Disposition, the Company expects that the ending balance of unrecognized tax benefits for the year ended December 31, 2016 will be reduced by approximately $29 million . The Company evaluates each reporting period whether it is reasonably possible that material changes to its uncertain tax position liability could occur in the next 12 months. Changes may occur as a result of uncertain tax positions being considered effectively settled, re-measured, paid, acquired or divested, as a result of a change in accounting rules, tax law or judicial decision, or due to expiration of the relevant statute of limitations. It is not possible to predict which uncertain tax positions, if any, may be challenged by tax authorities. The timing and impact of income tax audits and their resolution is highly uncertain. New facts, laws, pronouncements and judicial decisions can change assessments concerning technical merit and measurement. The amounts of or periods in which changes to reserves for uncertain tax positions will occur is rarely ascertainable. Of the balances remaining after the Disposition, the Company believes it is reasonably possible the total amount of unrecognized tax benefits disclosed as of December 31, 2016 may decrease approximately $21 million (approximately $2 million related to discontinued operations) in the fiscal year ending December 31, 2017 . Such possible decrease relates primarily to audit settlements, transfer pricing, deductibility issues and expiration of statutes of limitation. As of December 31, 2016 and 2015 , the Company had $59.8 million and $69.4 million , respectively, of unrecognized tax benefits. Of the $59.8 million at December 31, 2016 , $26.5 million , if recognized, would affect the effective tax rate. As of December 31, 2016 and 2015 , the liability for potential interest and penalties was $12.9 million and $13.9 million , respectively. During the years ended December 31, 2016 and 2015 , the Company recognized tax (benefit) expense of $(1.0) million and $1.0 million for interest and penalties, respectively. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE MHPS On January 4, 2017, the Company completed the disposition of its MHPS business to Konecranes. See Note A - “Sale of MHPS Business” for further information on the Disposition. The Disposition represents a significant strategic shift in the Company’s business away from universal, process, mobile harbor and ship-to-shore cranes that will have a major effect on the Company’s future operating results, primarily because the MHPS business represented the entirety of one of the Company’s five previous reportable operating segments and comprised two of the Company’s six previous reporting units, representing a significant portion of the Company’s revenues and assets, and is therefore accounted for as a discontinued operation for all periods presented. MHPS products include universal cranes, process cranes and components, such as rope hoists, chain hoists, light crane systems, travel units and electric motors, primarily for industrial applications, and mobile harbor cranes, ship-to-shore gantry cranes, rubber tired and rail mounted gantry cranes, straddle carriers, sprinter carriers, reach stackers, container handlers, general cargo lift trucks, automated stacking cranes, automated guided vehicles and software solutions for logistics terminals. As a result of the SAPA, the Company determined that the previously unrecognized deferred tax assets and liabilities related to the MHPS subsidiaries are more likely than not to be realized in the foreseeable future. The effective tax rate on income from discontinued operations in 2016 differs from the statutory rate, in part, due to the recognition of these deferred taxes. Trucks On May 30, 2014, the Company sold its truck business, which was previously consolidated in the Construction segment, to Volvo Construction Equipment for approximately $160 million . The truck business manufactured and sold off-highway rigid and articulated haul trucks. Included in the transaction was a manufacturing facility in Motherwell, Scotland. Due to this divestiture, reporting of the truck business has been included in discontinued operations for all applicable periods presented. Cash flows from the Company’s discontinued operations are included in the Consolidated Statements of Cash Flows. Income (loss) from discontinued operations The following amounts related to discontinued operations were derived from historical financial information and have been segregated from continuing operations and reported as discontinued operations in the Consolidated Statement of Income (Loss) (in millions): Year ended December 31, 2016 2015 2014 MHPS MHPS MHPS Trucks Total Net sales $ 1,398.2 $ 1,521.4 $ 1,829.7 $ 89.9 $ 1,919.6 Cost of sales (1,090.3 ) (1,184.1 ) (1,427.8 ) (82.4 ) (1,510.2 ) Selling, general and administrative expenses (266.8 ) (271.1 ) (378.9 ) (5.4 ) (384.3 ) Goodwill and intangible asset impairments (3.1 ) (34.7 ) — — — Net interest (expense) (2.3 ) (1.4 ) (3.1 ) — (3.1 ) Other income (expense) (11.5 ) 0.8 (1.3 ) (0.4 ) (1.7 ) Income (loss) from discontinued operations before income taxes 24.2 30.9 18.6 1.7 20.3 (Provision for) benefit from income taxes (9.9 ) (13.5 ) (11.1 ) (0.3 ) (11.4 ) Income (loss) from discontinued operations – net of tax 14.3 17.4 7.5 1.4 8.9 Net loss (income) attributable to noncontrolling interest (0.9 ) (3.3 ) (2.0 ) — (2.0 ) Income (loss) from discontinued operations – net of tax attributable to Terex Corporation $ 13.4 $ 14.1 $ 5.5 $ 1.4 $ 6.9 As a result of goodwill impairment tests performed as of October 1, 2016, 2015 and 2014 for the MHPS business, the Company recorded a non-cash impairment charge of approximately $11 million during the year ended December 31, 2015. There were no goodwill impairment charges recorded during 2016 and 2014, respectively. As a result of impairment tests performed in 2016, 2015 and 2014 for indefinite-lived tradenames in the MHPS business, the Company recorded non-cash impairment charges of approximately $3 million and $23 million during the years ended December 31, 2016 and 2015, respectively. The Company developed estimates of fair value using a discounted cash flow model. Assumptions critical to the process included forecasted financial information, discount rates and royalty rates. The estimates of fair value of indefinite-lived tradenames were based on the best information currently available. Fair value determination is categorized as Level 3 in the fair value hierarchy. See Note B - “Basis of Presentation”, for the definition of Level 3 input. There was no indefinite-lived tradenames impairment during 2014. Cranes As part of the transformation and improvement of its Cranes segment, the Company is actively seeking a buyer for a portion of its cranes business located in South America and, accordingly, the assets and liabilities are reported as held for sale at December 31, 2016. The Company recorded a non-cash impairment charge of $1.6 million to adjust net asset value to estimated fair value. Construction In December 2016, the Company entered an agreement to sell its Coventry, UK-based compact construction product line. The sale is subject to customary closing conditions and is expected to be completed in the first half of 2017. In addition, the Company is actively seeking a buyer for certain other construction product lines and expects to reach an agreement in 2017. The Company recorded a non-cash impairment charge of $3.5 million to adjust the net asset value of these other construction product lines to estimated fair value. The operating results for these construction product lines are reported in continuing operations, within the Corporate and Other category in our segment disclosures, and the assets and liabilities are reported as held for sale at December 31, 2016. Assets and liabilities held for sale Assets and liabilities held for sale consist of the Company’s former MHPS segment, portions of its Cranes segment and portions of its former Construction Segment. Such assets and liabilities are classified as held for sale upon meeting the requirements of ASC 360 - “Property, Plant and Equipment”, and are recorded at lower of carrying amount or fair value less costs to sell. Assets are no longer depreciated once classified as held for sale. The following table provides the amounts of assets and liabilities held for sale in the Consolidated Balance Sheet (in millions): December 31, 2016 December 31, 2015 MHPS Cranes Construction Total MHPS Assets Cash and cash equivalents $ 71.0 $ 1.2 $ 1.2 $ 73.4 $ 95.3 Trade receivables – net 243.5 3.1 24.4 271.0 236.0 Inventories 309.4 1.7 23.9 335.0 382.1 Prepaid and other current assets 49.9 0.5 3.1 53.5 36.2 Current assets held for sale $ 673.8 $ 6.5 $ 52.6 $ 732.9 $ 749.6 Property, plant and equipment – net $ 294.2 $ 0.8 $ 3.2 $ 298.2 $ 303.9 Goodwill 573.7 — — 573.7 564.1 Intangible assets – net 212.6 2.9 — 215.5 226.9 Impairment reserve — (1.7 ) (3.5 ) (5.2 ) — Other assets 86.4 1.1 1.6 89.1 65.6 Non-current assets held for sale $ 1,166.9 $ 3.1 $ 1.3 $ 1,171.3 $ 1,160.5 Liabilities Notes payable and current portion of long-term debt $ 13.1 $ — $ 1.3 $ 14.4 $ 13.8 Trade accounts payable 132.6 0.7 23.8 157.1 177.0 Accruals and other current liabilities 267.0 6.2 9.1 282.3 255.2 Current liabilities held for sale $ 412.7 $ 6.9 $ 34.2 $ 453.8 $ 446.0 Long-term debt, less current portion $ 2.4 $ — $ — $ 2.4 $ 0.1 Retirement plans 235.3 0.7 0.9 236.9 218.7 Other non-current liabilities 71.7 0.4 0.7 72.8 79.7 Non-current liabilities held for sale $ 309.4 $ 1.1 $ 1.6 $ 312.1 $ 298.5 The following table provides amounts of cash and cash equivalents presented in the Consolidated Statement of Cash Flows (in millions): December 31, 2016 December 31, 2015 December 31, 2014 Cash and cash equivalents: Cash and cash equivalents - continuing operations $ 428.5 $ 371.2 $ 392.6 Cash and cash equivalents - held for sale 73.4 95.3 85.6 Total cash and cash equivalents: $ 501.9 $ 466.5 $ 478.2 Cash and cash equivalents held for sale at December 31, 2016 , 2015 and 2014 include $14.0 million , $9.8 million and $2.2 million , respectively, which were not immediately available for use. These consist primarily of cash balances held in escrow to secure various obligations of the Company. The following table provides supplemental cash flow information related to discontinued operations (in millions): Year Ended December 31, 2016 2015 2014 Non-cash operating items: Depreciation and amortization $ 22.4 $ 55.8 $ 66.4 Deferred taxes $ 15.8 $ (2.2 ) $ (4.5 ) Goodwill Impairment $ — $ 11.3 $ — Asset Impairments $ 3.0 $ 23.9 $ 3.8 Investing activities: Capital expenditures $ (14.9 ) $ (22.3 ) $ (21.9 ) Other Year Ended December 31, 2016 2015 2014 Gain (loss) on disposition of discontinued operations $ 4.5 $ 4.5 $ 66.1 (Provision for) benefit from income taxes (1.0 ) (1.1 ) (7.5 ) Gain (loss) on disposition of discontinued operations – net of tax $ 3.5 $ 3.4 $ 58.6 During the years ended December 31, 2016 , 2015 , and 2014 the Company recognized a gain on disposition of discontinued operations - net of tax of $3.5 million , $3.4 million and $58.6 million , respectively. These gains are from contractual earnout payments related to the sale of the Company’s Atlas heavy construction equipment and knuckle-boom cranes businesses, and from our truck and mining businesses, including settlement of certain disputes in the truck sales agreement. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE For the year ended December 31, (in millions, except per share data) 2016 2015 2014 Income (loss) from continuing operations attributable to Terex Corporation common stockholders $ (193.0 ) $ 128.4 $ 253.5 Income (loss) from discontinued operations-net of tax 13.4 14.1 6.9 Gain (loss) on disposition of discontinued operations-net of tax 3.5 3.4 58.6 Net income (loss) attributable to Terex Corporation $ (176.1 ) $ 145.9 $ 319.0 Basic shares: Weighted average shares outstanding 107.9 107.4 109.7 Earnings (loss) per share - basic: Income (loss) from continuing operations $ (1.79 ) $ 1.20 $ 2.31 Income (loss) from discontinued operations-net of tax 0.13 0.13 0.06 Gain (loss) on disposition of discontinued operations-net of tax 0.03 0.03 0.54 Net income (loss) attributable to Terex Corporation $ (1.63 ) $ 1.36 $ 2.91 Diluted shares: Weighted average shares outstanding - basic 107.9 107.4 109.7 Effect of dilutive securities: Stock options, restricted stock awards and convertible notes — 2.2 4.5 Diluted weighted average shares outstanding 107.9 109.6 114.2 Earnings (loss) per share - diluted: Income (loss) from continuing operations $ (1.79 ) $ 1.17 $ 2.22 Income (loss) from discontinued operations-net of tax 0.13 0.13 0.06 Gain (loss) on disposition of discontinued operations-net of tax 0.03 0.03 0.51 Net income (loss) attributable to Terex Corporation $ (1.63 ) $ 1.33 $ 2.79 The following table provides information to reconcile amounts reported on the Consolidated Statement of Income (Loss) to amounts used to calculate earnings per share attributable to Terex Corporation common stockholders (in millions) for the year ended December 31: Reconciliation of amounts attributable to common stockholders: 2016 2015 2014 Income (loss) from continuing operations $ (193.3 ) $ 128.2 $ 252.0 Net loss (income) from continuing operations attributable to noncontrolling interest 0.3 0.2 1.5 Income (loss) from continuing operations attributable to common stockholders $ (193.0 ) $ 128.4 $ 253.5 Weighted average options to purchase 0.1 million shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), were outstanding during 2016 , 2015 and 2014 , but were not included in the computation of diluted shares as the effect would be anti-dilutive. Weighted average restricted stock awards of 1.5 million shares, 0.9 million shares and 0.4 million shares were outstanding during 2016 , 2015 and 2014 , respectively, but were not included in the computation of diluted shares because the effect would be anti-dilutive or performance targets were not yet achieved for awards contingent upon performance. ASC 260, “Earnings per Share,” requires that employee stock options and non-vested restricted shares granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future services that the Company has not yet recognized and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The Company includes the impact of pro forma deferred tax assets in determining the amount of tax benefits for potential windfalls and shortfalls (the differences between tax deductions and book expense) in this calculation. In connection with settlement of the 4% Convertible Senior Subordinated Notes the Company issued 3.4 million shares of common stock in June 2015. See Note O – “Long-Term Obligations.” Included in the computation of diluted shares for the year ended December 31, 2015 was 1.4 million shares that were contingently issuable prior to conversion. The number of shares that were contingently issuable for the year ended December 31, 2014 was 3.4 million . |
FINANCE RECEIVABLES
FINANCE RECEIVABLES | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
FINANCE RECEIVABLES | FINANCE RECEIVABLES TFS leases equipment and provides financing to customers for the purchase and use of Terex equipment. In the normal course of business, TFS assesses credit risk, establishes structure and pricing of financing transactions, documents the finance receivable, and records and funds the transactions. TFS bills and collects cash from the end customer. TFS primarily conducts on-book business in the U.S., with limited business in China, the United Kingdom, and Germany. TFS does business with various types of customers consisting of rental houses, end user customers and Terex equipment dealers. The Company’s net finance receivable balances include both sales-type leases and commercial loans. Finance receivables that management intends to hold until maturity are stated at their outstanding unpaid principal balances, net of an allowance for loan losses as well as any deferred fees and costs. Finance receivables originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. During the years ended December 31, 2016, 2015 and 2014 the Company transferred finance receivables of $290.5 million , $81.9 million and $308.2 million , respectively, to third party financial institutions, which qualified for sales treatment under ASC 860. At December 31, 2016, the Company had $4.7 million of held for sale finance receivables recorded in Prepaid and other current assets in the Consolidated Balance Sheet. Revenue attributable to finance receivables management intends to hold until maturity is recognized on the accrual basis using the effective interest method. TFS bills customers and accrues interest income monthly on the unpaid principal balance. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or management has significant doubts about further collectibility of contractual payments, even though the loan may be currently performing. A receivable may remain on accrual status if it is in the process of collection and is either guaranteed or secured. Interest received on non-accrual finance receivables is typically applied against principal. Finance receivables are generally restored to accrual status when the obligation is brought current and the borrower has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. The Company has a history of enforcing the terms of these separate financing agreements. Finance receivables, net consisted of the following (in millions): December 31, December 31, Commercial loans $ 226.4 $ 331.4 Sales-type leases 16.4 21.9 Total finance receivables, gross 242.8 353.3 Allowance for credit losses (6.3 ) (7.3 ) Total finance receivables, net $ 236.5 $ 346.0 Approximately $74 million of finance receivables are recorded in Prepaid and other current assets and approximately $162 million are recorded in Other assets in the Consolidated Balance Sheet. Credit losses are charged against the allowance for credit losses when management ceases active collection efforts. Subsequent recoveries, if any, are credited to earnings. The allowance for credit losses is maintained at a level set by management which represents evaluation of known and inherent risks in the portfolio at the consolidated balance sheet date. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, market-based loss experience, specific customer situations, estimated value of any underlying collateral, current economic conditions, and other relevant factors. This evaluation is inherently subjective, since it requires estimates that may be susceptible to significant change. Although specific and general loss allowances are established in accordance with management’s best estimate, actual losses are dependent upon future events and, as such, further additions to or decreases from the level of loss allowances may be necessary. The following table presents an analysis of the allowance for credit losses: Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Commercial Loans Sales-Type Leases Total Commercial Loans Sales-Type Leases Total Commercial Loans Sales-Type Leases Total Balance, beginning of period $ 6.5 0.8 $ 7.3 $ 1.9 $ 1.1 $ 3.0 $ 1.9 $ 0.4 $ 2.3 Provision for credit losses 0.2 (0.2 ) — 4.6 (0.3 ) 4.3 — 0.7 0.7 Charge offs (0.8 ) (0.2 ) (1.0 ) — — — — — — Recoveries — — — — — — — — — Balance, end of period $ 5.9 $ 0.4 $ 6.3 $ 6.5 $ 0.8 $ 7.3 $ 1.9 $ 1.1 $ 3.0 The Company utilizes a two tier approach to set allowances: (1) identification of impaired finance receivables and establishment of specific loss allowances on such receivables; and (2) establishment of general loss allowances on the remainder of its portfolio. Specific loss allowances are established based on circumstances and factors of specific receivables. The Company regularly reviews the portfolio which allows for early identification of potentially impaired receivables. The process takes into consideration, among other things, delinquency status, type of collateral and other factors specific to the borrower. General loss allowance levels are determined based upon a combination of factors including, but not limited to, TFS experience, general market loss experience, performance of the portfolio, current economic conditions, and management's judgment. The two primary risk characteristics inherent in the portfolio are (1) the customer's ability to meet contractual payment terms, and (2) the liquidation values of the underlying primary and secondary collaterals. The Company records a general or unallocated loss allowance that is calculated by applying the reserve rate to its portfolio, including the unreserved balance of accounts that have been specifically reserved for. All delinquent accounts are reviewed for potential impairment. A receivable is deemed to be impaired when based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The amount of impairment is measured as the difference between the balance outstanding and the underlying collateral value of the equipment being financed, as well as any other collateral. All finance receivables identified as impaired are evaluated individually. Generally, the Company does not change the terms and conditions of existing finance receivables. The following table presents individually impaired finance receivables (in millions): December 31, 2016 December 31, 2015 Commercial Loans Sales-Type Leases Total Commercial Loans Sales-Type Leases Total Recorded investment $ 1.6 $ — $ 1.6 $ 1.9 $ 1.8 $ 3.7 Related allowance 1.6 — 1.6 1.9 0.5 2.4 Average recorded investment 1.7 0.9 2.6 1.0 2.5 3.5 The average recorded investment for impaired finance receivables was $1.7 million for sales-type leases at December 31, 2014 , which were fully reserved. There were no impaired finance receivables for commercial loans at December 31, 2014. The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in millions): December 31, 2016 December 31, 2015 Allowance for credit losses, ending balance: Commercial Loans Sales-Type Leases Total Commercial Loans Sales-Type Leases Total Individually evaluated for impairment $ 1.6 $ — $ 1.6 $ 1.9 $ 0.5 $ 2.4 Collectively evaluated for impairment 4.3 0.4 4.7 4.6 0.3 4.9 Total allowance for credit losses $ 5.9 $ 0.4 $ 6.3 $ 6.5 $ 0.8 $ 7.3 Finance receivables, ending balance: Individually evaluated for impairment $ 1.6 $ — $ 1.6 $ 1.9 $ 1.8 $ 3.7 Collectively evaluated for impairment 224.8 16.4 241.2 329.5 20.1 349.6 Total finance receivables $ 226.4 $ 16.4 $ 242.8 $ 331.4 $ 21.9 $ 353.3 Accounts are considered delinquent when the billed periodic payments of the finance receivables exceed 30 days past the due date. The following table presents analysis of aging of recorded investment in finance receivables (in millions): December 31, 2016 Current 31-60 days past due 61-90 days past due Greater than 90 days past due Total past due Total Finance Receivables Commercial loans $ 224.2 $ 0.6 $ 0.2 $ 1.4 $ 2.2 $ 226.4 Sales-type leases 15.8 — 0.6 — 0.6 16.4 Total finance receivables $ 240.0 $ 0.6 $ 0.8 $ 1.4 $ 2.8 $ 242.8 December 31, 2015 Current 31-60 days past due 61-90 days past due Greater than 90 days past due Total past due Total Finance Receivables Commercial loans $ 329.6 $ 0.8 $ — $ 1.0 $ 1.8 $ 331.4 Sales-type leases 20.2 0.5 — 1.2 1.7 21.9 Total finance receivables $ 349.8 $ 1.3 $ — $ 2.2 $ 3.5 $ 353.3 At December 31, 2016 and 2015, $1.4 million and $1.0 million respectively, of commercial loans were 90 days or more past due. Commercial loans in the amount of $7.4 million and $4.8 million were on non-accrual status as of December 31, 2016 and 2015, respectively. At December 31, 2016 there were no sales-type lease receivables that were 90 days or more past due. At December 31, 2015 , there were $1.2 million of sales-type lease receivables were 90 days or more past due. At December 31, 2016 , there were no sales-type leases on non-accrual status. There were $1.3 million of sales-type leases on non-accrual status as of December 31, 2015 . Credit Quality Information Credit quality is reviewed periodically based on customers’ payment status. In addition to delinquency status, any information received regarding a customer (such as bankruptcy filings, etc.) will also be considered to determine the credit quality of the customer. Collateral asset values are also monitored regularly to determine the potential loss exposures on any given transaction. The Company uses the following internal credit quality indicators, based on an internal risk rating system, using certain external credit data, listed from the lowest level of risk to highest level of risk. The internal rating system considers factors affecting specific borrowers’ ability to repay. Finance receivables by risk rating (in millions): Rating December 31, 2016 December 31, 2015 Superior $ 9.6 $ 21.5 Above Average 64.7 159.4 Average 111.3 117.9 Below Average 53.0 44.2 Sub Standard 4.2 10.3 Total $ 242.8 $ 353.3 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following (in millions): December 31, 2016 2015 Finished equipment $ 334.7 $ 429.1 Replacement parts 144.9 168.3 Work-in-process 175.4 190.4 Raw materials and supplies 198.8 275.8 Inventories $ 853.8 $ 1,063.6 Reserves for lower of cost or market value, excess and obsolete inventory were $83.3 million and $76.8 million at December 31, 2016 and 2015 , respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment – net consist of the following (in millions): December 31, 2016 2015 Property $ 36.4 $ 37.2 Plant 144.3 161.9 Equipment 456.1 545.2 Property, Plant and Equipment – Gross 636.8 744.3 Less: Accumulated depreciation (332.2 ) (372.4 ) Property, plant and equipment – net $ 304.6 $ 371.9 Depreciation expense for the years ended December 31, 2016 , 2015 and 2014 , was $65.5 million , $63.9 million and $70.4 million , respectively. |
EQUIPMENT SUBJECT TO OPERATING
EQUIPMENT SUBJECT TO OPERATING LEASES | 12 Months Ended |
Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
EQUIPMENT SUBJECT TO OPERATING LEASES | EQUIPMENT SUBJECT TO OPERATING LEASES Operating leases arise from leasing the Company’s products to customers. Initial non-cancellable lease terms typically range up to 84 months. The net book value of equipment subject to operating leases was approximately $67 million and $58 million (net of accumulated depreciation of approximately $16 million and $37 million ) at December 31, 2016 and 2015 , respectively, and is included in Other assets on the Company’s Consolidated Balance Sheet. The equipment is depreciated on a straight-line basis over its estimated useful life. Future minimum lease payments to be received under non-cancellable operating leases with lease terms in excess of one year are as follows (in millions): Years ending December 31, 2017 $ 9.3 2018 4.9 2019 3.5 2020 1.9 2021 1.1 Thereafter 0.7 $ 21.4 The Company received approximately $14 million and $12 million of rental income from assets under operating leases during 2016 and 2015 , respectively, none of which represented contingent rental payments. |
DISPOSITIONS
DISPOSITIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Dispositions [Text Block] | DISPOSITIONS Construction During the year ended December 31, 2016, the Company sold certain portions of its former Construction segment, including the following products: midi/mini excavators, wheeled excavators, compact wheel loaders, and components, primarily in Europe. The Company recognized a loss of $8.1 million ( $5.6 million after-tax) related to sale of its components assets, of which $4.0 million was recorded in COGS and $4.1 million was recorded in SG&A in the Consolidated Statement of Income (Loss). The Company received total proceeds of approximately $60 million and recognized a gain of $7.2 million ( $3.3 million after-tax) within SG&A related to sale of its midi/mini excavators, wheeled excavators, and compact wheel loader business shares and assets. The remaining unsold assets and liabilities of the Company’s former Construction segment at December 31, 2016 are reported in the Consolidated Balance Sheet as held for sale. A.S.V. Inc. On December 19, 2014, the Company completed the sale of 51% of A.S.V., Inc. to Manitex International, Inc. (“Manitex”), resulting in a joint venture in compact track loaders and skid steers that is 51% owned by Manitex and 49% owned by Terex and accounted for the investment under the equity method of accounting. The Company recognized a gain of approximately $17 million on this sale in SG&A on the Consolidated Statement of Income (Loss). Demag Cranes and Components Pty. Ltd. On December 31, 2014, the Company sold 100% of Demag Cranes and Components Pty. Ltd. (“Demag Cranes”) in Australia to MHE-Demag (S) Pte. Ltd. (“MHE”), a 50% owned joint venture accounted for under the equity method of accounting. The Company recorded a loss on this disposition of approximately $33 million in SG&A on the Consolidated Statement of Income (Loss). The loss was comprised primarily of approximately $23 million of cumulative translation adjustment and approximately $6 million of allocated goodwill. Cash received from these dispositions is included in investing activities in the Consolidated Statement of Cash Flows. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET An analysis of changes in the Company’s goodwill by business segment is as follows (in millions): AWP (1) Cranes (1) MP Total Balance at December 31, 2014, gross $ 139.4 $ 198.8 $ 198.1 $ 536.3 Accumulated impairment (38.6 ) (4.2 ) (23.2 ) (66.0 ) Balance at December 31, 2014, net 100.8 194.6 174.9 470.3 Acquisitions — — 14.4 14.4 Foreign exchange effect and other (1.7 ) (15.7 ) (8.2 ) (25.6 ) Balance at December 31, 2015, gross 137.7 183.1 204.3 525.1 Accumulated impairment (38.6 ) (4.2 ) (23.2 ) (66.0 ) Balance at December 31, 2015, net 99.1 178.9 181.1 459.1 Acquisitions 1.6 — — 1.6 Foreign exchange effect and other (1.6 ) (3.8 ) (20.5 ) (25.9 ) Balance at December 31, 2016, gross 137.7 179.3 183.8 500.8 Accumulated impairment (38.6 ) (179.3 ) (23.2 ) (241.1 ) Balance at December 31, 2016, net (2) $ 99.1 $ — $ 160.6 $ 259.7 (1) Includes a $17.9 million reclassification of goodwill from Cranes to discontinued operations, and a $0.9 million reclassification of goodwill from Cranes to AWP as a result of segment realignments. See Note C - “Business Segment Information”. (2) During the second quarter of 2016 the Company wrote off $132.8 million of fully impaired goodwill associated with its former Construction segment. As part of our annual impairment test performed in the fourth quarter of 2016, we elected to perform a quantitative analysis (“Step 1”) on the AWP, Cranes and MP reporting units, to determine whether it is more likely than not that fair value exceeds carrying value for these reporting units. Based on the results of our Step 1 analysis, we determined that it is more likely than not that fair value exceeds carrying value for the AWP and MP reporting units. However, we concluded in our Step 1 analysis that the estimated fair value of our Cranes reporting unit was lower than carrying value. Step 2 of the analysis requires us to perform a theoretical purchase price allocation for our Cranes reporting unit to determine implied fair value of goodwill and to compare the implied fair value of goodwill to the recorded amount of goodwill. Upon completion of Step 2 of the test, we recorded a non-cash goodwill impairment charge of $176.0 million . This impairment charge is recorded in Goodwill impairment in the Consolidated Statement of Income (Loss). The outcome of any prospective tests may result in recording additional goodwill impairment charges in future periods. Intangible assets, net were comprised of the following as of December 31, 2016 and 2015 (in millions): December 31, 2016 December 31, 2015 Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets: Technology 7 $ 17.0 $ (15.7 ) $ 1.3 $ 17.3 $ (15.7 ) $ 1.6 Customer Relationships 20 33.1 (25.2 ) 7.9 34.8 (24.9 ) 9.9 Land Use Rights 68 7.9 (0.9 ) 7.0 8.2 (0.9 ) 7.3 Other 6 25.8 (23.6 ) 2.2 28.0 (24.2 ) 3.8 Total definite-lived intangible assets $ 83.8 $ (65.4 ) $ 18.4 $ 88.3 $ (65.7 ) $ 22.6 For the Year Ended December 31, (in millions) 2016 2015 2014 Aggregate Amortization Expense $ 2.9 $ 3.0 $ 11.5 Estimated aggregate intangible asset amortization expense (in millions) for the next five years is as follows: 2017 $ 2.1 2018 $ 1.9 2019 $ 1.8 2020 $ 1.8 2021 $ 1.7 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company enters into two types of derivatives to hedge its interest rate exposure and foreign currency exposure: hedges of fair value exposures and hedges of cash flow exposures. Fair value exposures relate to recognized assets or liabilities and firm commitments, while cash flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities or forecasted transactions. The Company operates internationally, with manufacturing and sales facilities in various locations around the world, and uses certain financial instruments to manage its foreign currency, interest rate and fair value exposures. To qualify a derivative as a hedge at inception and throughout the hedge period, the Company formally documents the nature and relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions, and the method of assessing hedge effectiveness. Additionally, for hedges of forecasted transactions, significant characteristics and expected terms of a forecasted transaction must be specifically identified, and it must be probable that each forecasted transaction will occur. If it is deemed probable the forecasted transaction will not occur, then the gain or loss would be recognized in current earnings. Financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged, both at inception and throughout the hedged period. The Company does not engage in trading or other speculative use of financial instruments. The Company has used and may use forward contracts and options to mitigate its exposure to changes in foreign currency exchange rates on third party and intercompany forecasted transactions. Primary currencies to which the Company is exposed are the Euro, British Pound and Australian Dollar. The effective portion of unrealized gains and losses associated with forward contracts and the intrinsic value of option contracts are deferred as a component of Accumulated other comprehensive income (“AOCI”) until the underlying hedged transactions are reported in the Company’s Consolidated Statement of Income (Loss). The Company has used and may use interest rate swaps to mitigate its exposure to changes in interest rates related to existing issuances of variable rate debt and changes in the fair value of fixed rate debt. Primary exposure includes movements in the U.S. prime rate and London Interbank Offered Rate (“LIBOR”). The effective portion of interest rate derivatives designated as cash flow hedges is deferred in AOCI and is recognized in earnings as hedged transactions occur. Changes in fair value associated with contracts deemed ineffective are recognized in earnings immediately. In the Consolidated Statement of Income (Loss), the Company records hedging activity related to debt instruments and hedging activity related to foreign currency in the accounts for which the hedged items are recorded. On the Consolidated Statement of Cash Flows, the Company presents cash flows from hedging activities in the same manner as it records the underlying item being hedged. The Company is party to currency exchange forward contracts that generally mature within one year to manage its exposure to changing currency exchange rates. At December 31, 2016 , the Company had $245.5 million notional amount of currency exchange forward contracts outstanding that were initially designated as hedge contracts, most of which mature on or before December 31, 2017 . The fair market value of these contracts at December 31, 2016 was a net loss of $2.6 million . At December 31, 2016 , $194.0 million notional amount ( $2.7 million of fair value losses) of these forward contracts have been designated as, and are effective as, cash flow hedges of forecasted and specifically identified transactions. During 2016 and 2015 , the Company recorded the change in fair value for these cash flow hedges to AOCI and reclassified to earnings a portion of the deferred gain or loss from AOCI as the hedged transactions occurred and were recognized in earnings. The Company records foreign exchange contracts at fair value on a recurring basis. The foreign exchange contracts designated as hedging instruments are categorized under Level 2 of the ASC 820 hierarchy and are recorded at December 31, 2016 and 2015 as a net liability of $2.6 million and a net asset of $3.1 million , respectively. See Note B – “Basis of Presentation,” for an explanation of the ASC 820 hierarchy. Fair values of these foreign exchange forward contracts are derived using quoted forward foreign exchange prices to interpolate values of outstanding trades at the reporting date based on their maturities. The Company uses forward foreign exchange contracts to mitigate its exposure to changes in foreign currency exchange rates on third party and intercompany forecasted transactions and balance sheet exposures. Certain of these contracts have not been designated as hedging instruments. The majority of gains and losses recognized from foreign exchange contracts not designated as hedging instruments were offset by changes in the underlying hedged items, resulting in no material net impact on earnings. Changes in the fair value of derivative financial instruments are recognized as gains or losses in Cost of goods sold or Other income (expense) - net in the Consolidated Statement of Income (Loss). Concurrent with the 2014 sale of a majority stake in A.S.V., Inc. to Manitex International, Inc. (“Manitex”), the Company invested in a subordinated convertible promissory note from Manitex, which included an embedded derivative, the conversion feature. At the date of issuance, the embedded derivative was measured at fair value. The derivative is categorized under Level 2 of the ASC 820 hierarchy and marked-to-market each period with changes in fair value recorded in Other income (expense) - net in the Consolidated Statement of Income (Loss). The Company entered into certain interest rate swap agreements to offset the variability of cash flows due to changes in the floating rate of borrowings under its Securitization Facility, which was terminated on May 31, 2016. See Note O – “Long-Term Obligations,” for additional information on the Securitization Facility. The interest rate swaps were designated as cash flow hedges of the changes in the cash flows of interest rate payments on debt associated with changes in floating interest rates. Changes in the fair value of these derivative financial instruments were recognized as gains or losses in Cost of goods sold in the Consolidated Statement of Income (Loss). The Company recorded these contracts at fair value on a recurring basis. At December 31, 2016 the Company had no interest rate swap contracts outstanding, because it terminated the Securitization Facility and concurrently settled its outstanding interest rate swap contracts. The interest rate swap contracts designated as hedging instruments were categorized under Level 2 of the ASC 820 hierarchy and were recorded at December 31, 2015 as a net asset of $0.2 million . The fair value of these contracts was derived using quoted interest rate swap prices at the reporting date based on their maturities. During 2016, the Company entered into forward foreign currency contracts, with notional value of $100.0 million , in connection with the sale of MHPS to Konecranes to hedge against its exposure to changes in the Euro to U.S. dollar exchange rate, as part of the proceeds from sale was received in Euros. The derivatives are categorized under Level 2 of the ASC 820 hierarchy and fair value is derived using quoted forward foreign exchange prices to interpolate values of outstanding trades at the reporting date based on their maturities. Fair value measurement resulted in a gain of $2.0 million recorded in Other income (expense) - net in the Consolidated Statement of Income (Loss). The following table provides the location and fair value amounts of derivative instruments designated as hedging instruments that are reported in the Consolidated Balance Sheet (in millions): Asset Derivatives Balance Sheet Account December 31, December 31, Foreign exchange contracts Other current assets $ 4.2 $ 4.0 Interest rate swap Other assets — 0.9 Total asset derivatives $ 4.2 $ 4.9 Liability Derivatives Foreign exchange contracts Other current liabilities (6.8 ) (0.8 ) Interest rate swap Other current liabilities — (0.7 ) Total liability derivatives $ (6.8 ) $ (1.5 ) Total Derivatives $ (2.6 ) $ 3.4 The following table provides the location and fair value amounts of derivative instruments not designated as hedging instruments that are reported in the Consolidated Balance Sheet (in millions): Asset Derivatives Balance Sheet Account December 31, December 31, Foreign exchange contracts Other current assets $ 2.6 $ 0.5 Debt conversion feature Other assets 1.1 1.1 Total asset derivatives $ 3.7 $ 1.6 Liability Derivatives Foreign exchange contracts Other current liabilities (1.2 ) (0.2 ) Total liability derivatives $ (1.2 ) $ (0.2 ) Total Derivatives $ 2.5 $ 1.4 The following tables provide the effect of derivative instruments that are designated as hedges in the Consolidated Statements of Income (Loss), Comprehensive Income (Loss) and AOCI (in millions): Gain (Loss) Recognized on Derivatives in AOCI: Year Ended Cash Flow Derivatives 2016 2015 2014 Foreign exchange contracts $ (4.5 ) $ 2.8 $ (3.4 ) Interest rate swap (0.2 ) 0.2 — Total $ (4.7 ) $ 3.0 $ (3.4 ) Gain (Loss) Reclassified from AOCI into Income (Loss) (Effective): Year Ended Account 2016 2015 2014 Cost of goods sold $ (2.0 ) $ 1.6 $ 2.5 Gain (Loss) Recognized on Derivatives (Ineffective) in Income (Loss): Year Ended Account 2016 2015 2014 Cost of goods sold $ 1.0 $ 2.3 $ (1.3 ) Other income (expense) – net $ — $ (0.1 ) $ 0.5 Total $ 1.0 $ 2.2 $ (0.8 ) The following table provides the effect of derivative instruments that are not designated as hedges in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (in millions): Gain (Loss) Recognized in Income on Derivatives not designated as hedges: Year Ended Account 2016 2015 2014 Other income (expense) – net 0.9 (3.4 ) 0.5 Counterparties to the Company’s currency exchange forward contracts and interest rate swap agreements are major financial institutions with credit ratings of investment grade or better and no collateral is required. There are no significant risk concentrations. Management continues to monitor counterparty risk and believes the risk of incurring losses on derivative contracts related to credit risk is unlikely and any losses would be immaterial. Unrealized net gains (losses), net of tax, included in AOCI are as follows (in millions): Year Ended December 31, 2016 2015 2014 Balance at beginning of period $ 2.3 $ (0.7 ) $ 2.7 Additional gains (losses) – net (5.7 ) 9.2 (1.4 ) Amounts reclassified to earnings 1.0 (6.2 ) (2.0 ) Balance at end of period $ (2.4 ) $ 2.3 $ (0.7 ) Within the unrealized net gains (losses) included in AOCI as of December 31, 2016 , it is estimated that $2.4 million of losses are expected to be reclassified into earnings in the next twelve months. |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER CHARGES | RESTRUCTURING AND OTHER CHARGES The Company continually evaluates its cost structure to be appropriately positioned to respond to changing market conditions. From time to time the Company may initiate certain restructuring programs to better utilize its workforce and optimize facility utilization to match the demand for its products. During the year ended December 31, 2015, the Company established a restructuring program in the MP segment to close one of its manufacturing facilities in the U.S., consolidate production with other U.S. sites and exit the hand-fed chipper line of products. By consolidating operations, the Company has optimized its use of resources, eliminated areas of duplication and operates more efficiently and effectively. The program cost $0.9 million , resulted in a reduction of 38 team members and was completed in 2015. During the year ended December 31, 2015, the Company established a restructuring program across multiple operating segments to centralize transaction processing and accounting functions into shared service centers. The program cost $0.9 million , resulted in the reduction of 69 team members and was completed in 2016. The segment breakdown of this program cost is as follows: Cranes ( $0.8 million ) and MP ( $0.1 million ). During the year ended December 31, 2016, the Company established restructuring programs in its Cranes segment to transfer production between existing facilities and close certain facilities in order to maximize labor efficiencies and reduce overhead costs, and incurred $76.9 million of expense. The programs are expected to cost $79.9 million , result in the reduction of approximately 1,260 team members and be completed in 2018. During the year ended December 31, 2016, the Company established restructuring programs in Corporate and Other to consolidate facilities, and incurred $2.9 million of expense. The programs are expected to cost $2.9 million , result in the reduction of approximately 32 team members and be completed in 2017. The following table provides information for all restructuring activities by segment of the amount of expense incurred during the year ended December 31, 2016 , the cumulative amount of expenses incurred for the years ended December 31, 2016 , 2015 and 2014 and the total amount expected to be incurred (in millions): Amount incurred during the year ended December 31, 2016 Cumulative amount incurred through December 31, 2016 Total amount expected to be incurred AWP $ 0.9 $ 0.9 $ 0.9 Cranes 76.9 77.7 79.9 MP 0.4 1.4 1.4 Corporate and Other 2.9 2.9 2.9 Total $ 81.1 $ 82.9 $ 85.1 The following table provides information by type of restructuring activity with respect to the amount of expense incurred during the year ended December 31, 2016 , the cumulative amount of expenses incurred since inception of the programs and the total amount expected to be incurred (in millions): Employee Termination Costs Facility Exit Costs Asset Disposal and Other Costs Total Amount incurred in the year ended December 31, 2016 $ 61.7 $ 1.7 $ 17.7 $ 81.1 Cumulative amount incurred through December 31, 2016 $ 62.9 $ 1.8 $ 18.2 $ 82.9 Total amount expected to be incurred $ 64.4 $ 2.5 $ 18.2 $ 85.1 The following table provides a roll forward of the restructuring reserve by type of restructuring activity for the year ended December 31, 2016 (in millions): Employee Termination Costs Total Restructuring reserve at December 31, 2015 $ 0.9 $ 0.9 Restructuring charges 70.9 70.9 Restructuring reductions (1) (9.6 ) (9.6 ) Cash expenditures (4.7 ) (4.7 ) Foreign exchange (0.7 ) (0.7 ) Restructuring reserve at December 31, 2016 $ 56.8 $ 56.8 (1) Primarily related to reversal of accrued severance costs associated with the Company’s change in plan from closing to selling a certain business. During the years ended December 31, 2016 , 2015 and 2014 , $42.6 million , $0.3 million and $0.3 million , respectively, of restructuring charges were included in COGS. During the years ended December 31, 2016 , 2015 and 2014 , $20.8 million , $1.1 million and $0.3 million , respectively, of restructuring charges were included in SG&A costs. There were $17.7 million and $0.4 million of asset impairments included in restructuring costs, recorded in SG&A, for the years ended December 31, 2016 and 2015 , respectively. There were no asset impairments included in restructuring costs for the year ended December 31, 2014 . Other During the year ended December 31, 2016, the Company recorded approximately $21.1 million and $12.7 million as a component of COGS and SG&A, respectively, for severance charges for structural cost reduction actions across all segments and corporate functions. |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
LONG-TERM OBLIGATIONS | LONG-TERM OBLIGATIONS Long-term debt is summarized as follows (in millions): December 31, 2016 2015 6-1/2% Senior Notes due April 1, 2020, net of unamortized debt issuance costs of $2.1 and $2.8 respectively $ 297.9 $ 297.2 6% Senior Notes due May 15, 2021, net of unamortized debt issuance costs of $7.5 and $9.2, respectively 842.5 840.8 2014 Credit Agreement – term debt, net of unamortized debt issuance costs of $7.9 and $9.1, respectively 420.7 430.1 2015 Securitization Facility — 206.5 Capital lease obligations 2.9 4.9 Other 11.8 16.7 Total debt 1,575.8 1,796.2 Less: Notes payable and current portion of long-term debt (13.8 ) (66.4 ) Long-term debt, less current portion $ 1,562.0 $ 1,729.8 2014 Credit Agreement On January 31, 2017, in connection with the 2017 Credit Agreement (as defined below), the Company terminated its 2014 Credit Agreement (as defined below), among the Company and certain of its subsidiaries, the lenders thereunder and Credit Suisse AG, as administrative agent and collateral agent, and related agreements and documents. On August 13, 2014 the Company entered into a credit agreement (the “2014 Credit Agreement”), with the lenders party thereto and Credit Suisse AG, as administrative agent and collateral agent. In connection with the 2014 Credit Agreement, the Company terminated its existing amended and restated credit agreement, dated as of August 5, 2011, as amended (the “2011 Credit Agreement”), among the Company and certain of its subsidiaries, the lenders thereunder and Credit Suisse AG, as administrative agent and collateral agent, and related agreements and documents. The 2014 Credit Agreement provided the Company with a senior secured revolving line of credit of up to $600 million that was available through August 13, 2019, a $230.0 million senior secured term loan and a €200.0 million senior secured term loan, which both matured on August 13, 2021. The 2014 Credit Agreement allowed unlimited incremental commitments, which could be extended at the option of the existing or new lenders and could be in the form of revolving credit commitments, term loan commitments, or a combination of both as long as the Company satisfied a senior secured debt financial ratio contained in the 2014 Credit Agreement. The 2014 Credit Agreement required the Company to comply with a number of covenants. The covenants limited, in certain circumstances, the Company’s ability to take a variety of actions, including but not limited to: incurring indebtedness; creating or maintaining liens on its property or assets; making investments, loans and advances; repurchasing shares of its Common Stock; engaging in acquisitions, mergers, consolidations and asset sales; redeeming debt; and paying dividends and distributions. On May 29, 2015, the Company entered into an Incremental Assumption Agreement and Amendment No. 1 to the 2014 Credit Agreement which lowered the interest rate on the Company’s €200.0 million Euro denominated term loan from Euro Interbank Offered Rate (“EURIBOR”) plus 3.25% with a 0.75% EURIBOR floor to EURIBOR plus 2.75% with a 0.75% EURIBOR floor. On September 30, 2016, the Company entered into an Amendment No. 2 (the “Amendment”) to the 2014 Credit Agreement, with the lenders party thereto and Credit Suisse AG, as administrative agent and collateral agent. The Amendment, among other things, waived the requirement that the Company and its restricted subsidiaries receive at least 75% of the consideration from the SAPA in the form of cash and cash equivalents. The Amendment also provided the Company with additional flexibility to not use the net cash proceeds from the SAPA to prepay the term loans, although it did require the Company to use $300 million of the net cash proceeds received from the SAPA, within 60 days of receipt thereof, to reduce its outstanding senior indebtedness. During the year ended December 31, 2016, the Company incurred approximately $0.3 million of costs related to the Amendment (see Note A - “Sale of MHPS Business”). If the Company’s borrowings under its revolving line of credit were greater than 30% of the total revolving credit commitments, the 2014 Credit Agreement required the Company to comply with certain financial tests, as defined in the 2014 Credit Agreement. If applicable, the minimum required levels of the interest coverage ratio would be 2.5 to 1.0 and the maximum permitted levels of the senior secured leverage ratio would be 2.75 to 1.0. The 2014 Credit Agreement contained customary default provisions and had various non-financial covenants, both requiring the Company to refrain from taking certain future actions (as described above) and requiring the Company to take certain actions, such as keeping its corporate existence in good standing, maintaining insurance, and providing its bank lending group with financial information on a timely basis. In connection with termination of the 2011 Credit Agreement, the Company recorded charges of $0.1 million and $2.6 million for accelerated amortization of debt acquisition costs and original issue discount as a loss on early extinguishment of debt for the years ended December 31, 2015 and 2014, respectively. As of December 31, 2016 and 2015 , the Company had $428.6 million and $439.2 million , respectively, in U.S. dollar and Euro denominated term loans outstanding under its 2014 Credit Agreement. The weighted average interest rate on the term loans at December 31, 2016 and 2015 was 3.63% and 3.50% , respectively. The Company had no outstanding revolving credit amounts as of December 31, 2016 and 2015 . The 2014 Credit Agreement incorporated facilities for issuance of letters of credit up to $400 million . Letters of credit issued under the 2014 Credit Agreement letter of credit facility decreased availability under the $600 million revolving line of credit. As of December 31, 2016 and 2015 , the Company had no letters of credit issued under the 2014 Credit Agreement. The 2014 Credit Agreement also permitted the Company to have additional letter of credit facilities up to $300 million , and letters of credit issued under such additional facilities did not decrease availability under the revolving line of credit. The Company had letters of credit issued under the additional letter of credit facilities of the 2014 Credit Agreement that totaled $36.8 million and $21.2 million as of December 31, 2016 and 2015 , respectively. The Company also has bilateral arrangements to issue letters of credit with various other financial institutions. These additional letters of credit did not reduce the Company’s availability under the 2014 Credit Agreement. The Company had letters of credit issued under these additional arrangements of $146.4 million ( $121.4 million related to discontinued operations) and $189.7 million ( $153.6 million related to discontinued operations) as of December 31, 2016 and 2015 , respectively. In total, as of December 31, 2016 and 2015 , the Company had letters of credit outstanding of $183.2 million ( $121.4 million related to discontinued operations) and $210.9 million ( $153.6 million related to discontinued operations), respectively. The letters of credit generally serve as collateral for certain liabilities included in the Consolidated Balance Sheet. Certain letters of credit serve as collateral guaranteeing the Company’s performance under contracts. The Company and certain of its subsidiaries agreed to take certain actions to secure borrowings under the 2014 Credit Agreement. As a result, the Company and certain of its subsidiaries entered into a Guarantee and Collateral Agreement with Credit Suisse, as collateral agent for the lenders, granting security to the lenders for amounts borrowed under the 2014 Credit Agreement. The Company was required to (a) pledge as collateral the capital stock of the Company’s material domestic subsidiaries and 65% of the capital stock of certain of the Company’s material foreign subsidiaries, and (b) provide a first priority security interest in, and mortgages on, substantially all of the Company’s domestic assets. 6-1/2% Senior Notes On March 27, 2012, the Company sold and issued $300 million aggregate principal amount of Senior Notes Due 2020 (“ 6-1/2% Notes”) at par. The proceeds from these notes were used for general corporate purposes. The 6-1/2% Notes are redeemable by the Company beginning in April 2016 at an initial redemption price of 103.25% of principal amount. The 6-1/2% Notes are jointly and severally guaranteed by certain of the Company’s domestic subsidiaries (see Note T – “Consolidating Financial Statements”). On September 30, 2016, the Company obtained the requisite non-revocable consents required to grant certain waivers from the asset sale covenants in the indenture governing the 6-1/2% Notes. The waiver agreements waive the requirement that the Company receive at least 75% of the consideration from the SAPA in the form of cash and cash equivalents. In connection with the receipt and effectiveness of the consents, the Company paid a total of $1.1 million as a result of the Disposition, of which $0.4 million had been incurred as of December 31, 2016 (see Note A - “Sale of MHPS Business”). 6% Senior Notes On November 26, 2012, the Company sold and issued $850 million aggregate principal amount of Senior Notes due 2021 (“ 6% Notes”) at par. The proceeds from this offering plus other cash was used to redeem all $800 million principal amount of the outstanding 8% Senior Subordinated Notes. The 6% Notes are redeemable by the Company beginning in November 2016 at an initial redemption price of 103.00% of principal amount. The 6% Notes are jointly and severally guaranteed by certain of the Company’s domestic subsidiaries (see Note T – “Consolidating Financial Statements”). On September 30, 2016, the Company obtained the requisite non-revocable consents required to grant certain waivers from the asset sale covenants in the indenture governing the 6% Notes. The waiver agreements waive the requirement that the Company receive at least 75% of the consideration from the SAPA in the form of cash and cash equivalents. In connection with the receipt and effectiveness of the consents, the Company paid a total of $3.1 million as a result of the Disposition, of which $1.1 million had been incurred as of December 31, 2016 (see Note A - “Sale of MHPS Business”). 4% Convertible Senior Subordinated Notes On June 3, 2009, the Company sold and issued $172.5 million aggregate principal amount of 4% Convertible Notes. At issuance, the Company was required to separately account for the liability and equity components of the 4% Convertible Notes in a manner that reflected the Company’s nonconvertible debt borrowing rate at the date of issuance for interest cost to be recognized in subsequent periods. The Company allocated $54.3 million of the $172.5 million principal amount of the 4% Convertible Notes to the equity component, which represented a discount to the debt and was amortized into interest expense using the effective interest method through settlement. The Company recorded a related deferred tax liability of $19.4 million on the equity component. During 2012, the Company purchased approximately 25% of the outstanding 4% Convertible Notes. The balance of the 4% Convertible Notes was $128.8 million at settlement on June 1, 2015. The Company recognized interest expense of $5.7 million and $13.5 million on the 4% Convertible Notes for the years ended December 31, 2015 and 2014 , respectively. Interest expense on the 4% Convertible Notes throughout its term included 4% annually of cash interest on the maturity balance of $128.8 million plus non-cash interest expense accreted to the debt balance as described. On June 1, 2015 the Company paid cash of $131.1 million (including accrued interest of $2.3 million ) and issued 3.4 million shares of its $.01 par value common stock to settle the 4% Convertible Notes. 2015 Securitization Facility On May 28, 2015, the Company, through certain of its subsidiaries, entered into a Loan and Security Agreement (the “Securitization Facility”) with lenders party thereto. The borrower under the Securitization Facility was a bankruptcy remote subsidiary of the Company (the “Borrower”). On May 31, 2016, the Company terminated the Securitization Facility, and repaid all outstanding loans because it was not providing the Company with the flexibility needed for its portfolio of assets. As a result of terminating the Securitization Facility, during the year ended December 31, 2016, the Company recorded a loss on early extinguishment of debt of $0.4 million to write-off deferred debt costs. Under the Securitization Facility, the Borrower received loans from time to time from conduit lenders thereunder, which were secured by and payable from collateral of the Borrower (primarily equipment loans and leases to Terex customers originated by TFS and transferred to the Borrower). The facility limit for such loans was $350 million and contained customary representations, warranties and covenants. At December 31, 2015, the Company had $206.5 million in loans outstanding under the Securitization Facility. The weighted average interest rate on the Securitization Facility at December 31, 2015 was 1.46% . Interest expense on loans outstanding under this facility was recorded to COGS in the Consolidated Statement of Income (Loss). The Company was party to certain derivative interest rate swap agreements entered into to hedge its exposure to variable interest rates related to the Securitization Facility. The effective interest rate on the Securitization Facility when combined with the interest rate swap agreements was 2.13% at December 31, 2015. For further information on the interest rate swap agreements see Note M – “Derivative Financial Instruments.” Commitment Letter On May 16, 2016, as a result of terminating the BCA, the Company and Konecranes terminated the commitment letter they entered into on August 10, 2015 with Credit Suisse Securities (USA) LLC ("CS Securities") and Credit Suisse AG ("CS" and, together with CS Securities and their respective affiliates, "Credit Suisse") and the commitments thereunder by Credit Suisse, the other commitment parties and the lenders in respect of the senior secured credit facilities (the “Commitment Letter”). As the Company and Konecranes terminated the BCA, the parties no longer needed the use of funds that would have been supplied by the senior secured credit facilities pursuant to the Commitment Letter. In connection with the Commitment Letter, the Company incurred fees of $7.2 million for the year ended December 31, 2016 which are included with transaction costs directly related to the BCA and are recorded in Other income (expense) - net in the Consolidated Statement of Comprehensive Income (Loss). 5-5/8% Senior Notes On January 31, 2017 , the Company sold and issued $600.0 million aggregate principal amount of Senior Notes Due 2025 (“5-5/8% Notes”) at par in a private offering. The proceeds from the 5-5/8% Notes, together with cash on hand, including cash from the sale of our MHPS business, have been and will be used: (i) to complete a tender offer for up to $550.0 million of our 6% Senior Notes, (ii) to redeem and discharge such portion of the 6% Notes that are not purchased in the tender offer, (iii) to fund a $300.0 million partial redemption of the 6% Notes, (iv) to fund anticipated redemption, repurchase or other retirement of all $300.0 million aggregate principal amount outstanding of our 6-1/2% Notes on or before April 3, 2017, (v) to pay related premiums, fees, discounts and expenses, and (vi) for general corporate purposes, including repayment of borrowings outstanding under the 2014 Credit Agreement. The 5-5/8% Notes are jointly and severally guaranteed by certain of the Company’s domestic subsidiaries. The Company expects to record a loss on early extinguishment of debt related to its 6% Senior Notes and its 6-1/2% Senior Notes of approximately $44 million in 2017. 2017 Credit Facility Agreement On January 31, 2017 the Company entered into a new credit agreement (the “2017 Credit Agreement”), with the lenders and issuing banks party thereto (the “New Lenders”) and Credit Suisse AG, Cayman Islands Branch, (“CSAG”) as administrative agent and collateral agent. In connection with the 2017 Credit Agreement, the Company terminated its 2014 Credit Agreement, among the Company and certain of its subsidiaries, the lenders thereunder and Credit Suisse AG, as administrative agent and collateral agent, and related agreements and documents. The 2017 Credit Agreement provides the Company with a senior secured revolving line of credit of up to $450 million that is available through January 31, 2022 and a $400.0 million senior secured term loan, which will mature on January 31, 2024. The 2017 Credit Agreement allows unlimited incremental commitments, which may be extended at the option of the existing or new lenders and can be in the form of revolving credit commitments, term loan commitments, or a combination of both, with incremental amounts in excess of $300.0 million as long as the Company satisfies a senior secured leverage ratio contained in the 2017 Credit Agreement. The 2017 Credit Agreement requires the Company to comply with a number of covenants, which limit, in certain circumstances, the Company’s ability to take a variety of actions, including but not limited to: incur indebtedness; create or maintain liens on its property or assets; make investments, loans and advances; repurchase shares of its common stock; engage in acquisitions, mergers, consolidations and asset sales; redeem debt; and pay dividends and distributions. If the Company’s borrowings under its revolving line of credit are greater than 30% of the total revolving credit commitments, the 2017 Credit Agreement requires the Company to comply with certain financial tests, as defined in the 2017 Credit Agreement. If applicable, the minimum required levels of the interest coverage ratio would be 2.5 to 1.0 and the maximum permitted levels of the senior secured leverage ratio would be 2.75 to 1.0. The 2017 Credit Agreement also contains customary default provisions. Furthermore, the Company and certain of its subsidiaries agreed to take certain actions to secure borrowings under the 2017 Credit Agreement. As a result, on January 31, 2017, Terex and certain of its subsidiaries entered into a Guarantee and Collateral Agreement with CSAG, as collateral agent for the New Lenders, granting security and guarantees to the New Lenders for amounts borrowed under the 2017 Credit Agreement. Pursuant to the Guarantee and Collateral Agreement, Terex is required to (a) pledge as collateral the capital stock of the Company’s material domestic subsidiaries and 65% of the capital stock of certain of the Company’s material foreign subsidiaries, and (b) provide a first priority security interest in substantially all of the Company’s domestic assets. The Company expects to record a loss on early extinguishment of debt related to its 2014 Credit Agreement of approximately $8 million in 2017. Schedule of Debt Maturities Scheduled annual maturities of the principal portion of long-term debt outstanding at December 31, 2016 in the successive five-year period and thereafter are summarized below. These amounts do not reflect the impact of the 5-5/8% Senior Notes and 2017 Credit Agreement, which were entered into in January 2017. Amounts shown are exclusive of minimum lease payments for capital lease obligations (in millions): 2017 $ 13.6 2018 4.7 2019 4.4 2020 304.0 2021 1,262.6 Thereafter 1.1 Total Debt 1,590.4 Less: Unamortized debt issuance costs $ (17.5 ) Net debt $ 1,572.9 Based on indicative price quotations from financial institutions multiplied by the amount recorded on the Company’s Consolidated Balance Sheet, excluding debt acquisition costs (“Book Value”), the Company estimates the fair values (“FV”) of its debt set forth below as of December 31, 2016 and 2015 , as follows (in millions, except for quotes): 2016 Book Value Quote FV 6-1/2% Senior Notes $ 300.0 $ 1.02500 $ 308 6% Senior Notes $ 850.0 $ 1.02750 $ 873 2014 Credit Agreement Term Loan (net of discount) – USD $ 223.5 $ 1.00000 $ 224 2014 Credit Agreement Term Loan (net of discount) – EUR $ 205.1 $ 0.99500 $ 204 2015 Book Value Quote FV 6-1/2% Senior Notes $ 300.0 $ 0.96000 $ 288 6% Senior Notes $ 850.0 $ 0.91500 $ 778 2014 Credit Agreement Term Loan (net of discount) – USD $ 225.5 $ 0.99000 $ 223 2014 Credit Agreement Term Loan (net of discount) – EUR $ 213.7 $ 0.99750 $ 213 The fair value of debt reported in the tables above is based on price quotations on the debt instrument in an active market and therefore categorized under Level 1 of the ASC 820 hierarchy. See Note B – “Basis of Presentation,” for an explanation of the ASC 820 hierarchy. The Company believes that the carrying value of its other borrowings, including amounts outstanding for the revolving line of credit under the 2014 Credit Agreement and the Securitization Facility, approximates fair market value based on maturities for debt of similar terms. The fair value of these other borrowings are categorized under Level 2 of the ASC 820 hierarchy. The Company paid $96.2 million , $98.9 million and $105.9 million of interest in 2016 , 2015 and 2014 , respectively. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Lease Commitments [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS Future minimum noncancellable operating lease payments at December 31, 2016 are as follows (in millions): Operating Leases 2017 $ 32.5 2018 21.0 2019 16.4 2020 11.2 2021 10.5 Thereafter 40.7 Total minimum obligations $ 132.3 Most of the Company’s operating leases provide the Company with the option to renew the leases for varying periods after the initial lease terms. These renewal options enable the Company to renew the leases based upon the fair rental values at the date of expiration of the initial lease. Total rental expense under operating leases was $44.3 million , $49.6 million , and $50.4 million in 2016 , 2015 and 2014 , respectively. |
RETIREMENT PLANS AND OTHER BENE
RETIREMENT PLANS AND OTHER BENEFITS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT PLANS AND OTHER BENEFITS | RETIREMENT PLANS AND OTHER BENEFITS U.S. Pension Plan As of December 31, 2016 , the Company maintained one qualified defined benefit pension plan covering certain domestic employees (the “Terex Plan”). Participation in the Terex 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 Company’s policy generally to fund the Terex Plan based on the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Plan assets consist primarily of common stocks, bonds and short-term cash equivalent funds. The Company maintains a nonqualified Supplemental Executive Retirement Plan (“SERP”). 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 participant’s 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 and participation in the SERP has been frozen. There is a defined contribution plan for certain senior executives of the Company. During July 2012, the Moving Ahead for Progress in the 21st Century Act (“MAP 21”) was enacted in the U.S. MAP 21 provided short-term relief of minimum contribution requirements by increasing the interest rates used to value pension liabilities beginning January 1, 2012 and increased the premiums due to the Pension Benefit Guaranty Corporation beginning in 2013 through 2015. On July 31, 2014, Congress passed the “Highway and Transportation Funding Act of 2014” (“HFTA-2014”). Included in HFTA-2014 were provisions to further stabilize the interest rates used in valuing pension liabilities. As a result of the provisions of MAP 21 and HFTA-2014, and existing funding commitments, there were no minimum contribution requirements for the 2016, 2015 and 2014 plan years. Non-U.S. Plans The Company maintains defined benefit plans in France, Germany, India, Switzerland and the United Kingdom for some of its subsidiaries. Participation in the United Kingdom plan has been frozen. The United Kingdom plan is a funded plan and the Company funds this plan in accordance with funding regulations in the United Kingdom and a negotiated agreement between the Company and the plan’s trustees. The plans in France, Germany and India are unfunded plans. For the Company’s operations in Italy there are mandatory termination indemnity plans providing a benefit payable upon termination of employment in substantially all cases of termination. The Company records this obligation based on mandated requirements. The measure of current obligation is not dependent on the employees’ future service and therefore is measured at current value. Other Post-employment Benefits The Company has several non-pension post-retirement benefit programs. The Company provides post-employment health and life insurance benefits to certain former salaried and hourly employees. The health care programs are contributory, with participants’ contributions adjusted annually, and the life insurance plan is noncontributory. Savings Plans The Company sponsors various tax deferred savings plans into which eligible employees may elect to contribute a portion of their compensation. The Company may, but is not obligated to, contribute to certain of these plans. The Company’s Common Stock held in a rabbi trust pursuant to the Deferred Compensation Plan is treated in a manner similar to treasury stock. The number of shares of the Company’s Common Stock held in the rabbi trust was 0.9 million and 0.8 million at December 31, 2016 and 2015 , respectively. Charges recognized for the Deferred Compensation Plan and these other savings plans were $19.3 million , $20.6 million and $18.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. For the years ended December 31, 2016 , 2015 and 2014 , Company matching contributions to tax deferred savings plans were invested at the direction of plan participants. Information regarding the Company’s plans, including SERP, was as follows (in millions, except percent values): U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits 2016 2015 2016 2015 2016 2015 Accumulated benefit obligation at end of year $ 161.2 $ 167.2 $ 209.7 $ 214.9 Change in benefit obligation: Benefit obligation at beginning of year $ 174.0 $ 184.9 $ 217.1 $ 243.0 $ 4.9 $ 5.7 Service cost 0.6 1.1 3.1 2.9 — — Interest cost 7.1 7.2 6.5 6.9 0.2 0.2 Transfer to Held for Sale — — (5.5 ) — — — Actuarial loss (gain) 2.5 (7.8 ) 25.9 (9.9 ) (0.6 ) (0.5 ) Benefits paid (16.6 ) (11.4 ) (9.4 ) (8.8 ) (0.3 ) (0.5 ) Foreign exchange effect — — (26.2 ) (17.0 ) — — Benefit obligation at end of year 167.6 174.0 211.5 217.1 4.2 4.9 Change in plan assets: Fair value of plan assets at beginning of year 123.1 136.8 111.2 119.0 — — Actual return on plan assets 9.5 (2.4 ) 18.4 (0.3 ) — — Employer contribution 1.1 0.1 6.7 7.2 0.3 0.5 Employee contribution — — 0.4 0.3 — — Benefits paid (16.6 ) (11.4 ) (9.4 ) (8.8 ) (0.3 ) (0.5 ) Foreign exchange effect — — (19.0 ) (6.2 ) — — Fair value of plan assets at end of year 117.1 123.1 108.3 111.2 — — Funded status $ (50.5 ) $ (50.9 ) $ (103.2 ) $ (105.9 ) $ (4.2 ) $ (4.9 ) Amounts recognized in the statement of financial position consist of: Current liabilities $ 1.2 $ 1.0 $ 2.4 $ 3.1 $ 0.5 $ 0.6 Non-current liabilities 49.3 49.9 100.8 102.8 3.7 4.3 Total liabilities $ 50.5 $ 50.9 $ 103.2 $ 105.9 $ 4.2 $ 4.9 Amounts recognized in accumulated other comprehensive loss consist of: Actuarial net loss $ 75.6 $ 78.5 $ 148.5 $ 126.5 $ — $ 0.6 Prior service cost 0.3 0.4 (2.2 ) 0.2 — — Total amounts recognized in accumulated other comprehensive loss $ 75.9 $ 78.9 $ 146.3 $ 126.7 $ — $ 0.6 U.S. Pension Benefits Non-U.S.Pension Benefits Other Benefits 2016 2015 2014 2016 2015 2014 2016 2015 2014 Weighted-average assumptions as of December 31: Discount rate (1) 4.03 % 4.20 % 4.02 % 2.27 % 3.23 % 2.97 % 3.81 % 3.91 % 3.74 % Expected return on plan assets 7.00 % 7.50 % 7.50 % 5.90 % 5.93 % 5.96 % N/A N/A N/A Rate of compensation increase (1) 3.75 % 3.75 % 3.75 % 0.89 % 0.83 % 0.84 % N/A N/A N/A (1) The weighted average assumptions as of December 31 are used to calculate the funded status at the end of the current year and the net periodic cost for the subsequent year. U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits 2016 2015 2014 2016 2015 2014 2016 2015 2014 Components of net periodic cost: Service cost $ 0.6 $ 1.1 $ 0.9 $ 3.1 $ 2.9 $ 1.6 $ — $ — $ — Interest cost 7.1 7.2 7.2 6.5 6.9 8.9 0.2 0.2 0.2 Expected return on plan assets (8.3 ) (9.9 ) (9.2 ) (6.0 ) (7.0 ) (6.7 ) — — — Recognition of prior service cost 0.2 0.1 0.1 — — 2.0 — — — Amortization of actuarial loss 4.2 3.8 2.1 2.5 3.2 1.8 — 0.1 0.1 Other — — — (0.4 ) (0.3 ) — — — — Net periodic cost $ 3.8 $ 2.3 $ 1.1 $ 5.7 $ 5.7 $ 7.6 $ 0.2 $ 0.3 $ 0.3 U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits 2016 2015 2016 2015 2016 2015 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): Net (gain) loss $ 1.3 $ 4.3 $ 39.7 $ (12.9 ) $ (0.6 ) $ (0.5 ) Amortization of actuarial losses (4.2 ) (3.7 ) (5.6 ) (7.5 ) — — Amortization of prior service cost (0.1 ) (0.1 ) (2.3 ) (0.1 ) — — Foreign exchange effect — — (12.2 ) (12.7 ) — — Total recognized in other comprehensive income (loss) $ (3.0 ) $ 0.5 $ 19.6 $ (33.2 ) $ (0.6 ) $ (0.5 ) U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits Amounts expected to be recognized as components of net periodic cost for the year ending December 31, 2017: Actuarial net loss $ 4.1 $ 3.3 $ — Prior service cost 0.1 — — Total amount expected to be recognized as components of net periodic cost for the year ending December 31, 2017 $ 4.2 $ 3.3 $ — For the Company’s plans, including the SERP, that have accumulated benefit obligations in excess of plan assets the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were (in millions): U.S. Pension Benefits Non-U.S. Pension Benefits 2016 2015 2016 2015 Projected benefit obligation $ 167.6 $ 174.0 $ 211.5 $ 217.1 Accumulated benefit obligation $ 161.2 $ 167.2 $ 209.7 $ 214.9 Fair value of plan assets $ 117.1 $ 123.1 $ 108.3 $ 111.2 Determination of plan obligations and associated expenses requires the use of actuarial valuations based on certain economic assumptions, which includes discount rates and expected rates of return on plan assets. The discount rate enables the Company to estimate the present value of expected future cash flows on the measurement date. The rate used reflects a rate of return on high-quality fixed income investments that matches the duration of expected benefit payments at the December 31 measurement date. The rate used for the expected return on plan assets for the U.S. plan is based on a review of long-term historical asset performances aligned with the Company’s investment strategy and portfolio mix. While the Company examines performance annually, it also views historic asset portfolios and performance over a long period of years before recommending a change. In the short term, there may be fluctuations of positive and negative yields year-over-year, but over the long-term, the return is expected to be approximately 7% . The Company’s overall investment strategy for the U.S. defined benefit plan balances two objectives, investing in fixed income securities whose maturity broadly matches the maturity of the pension liabilities and investing in equities and other assets expected to generate higher returns. The Company invests through a number of investment funds with diversified asset types, strategies and managers. Equity securities, including investments in large to small-cap companies in the U.S. and internationally, constitute approximately 32% and 31% of the portfolio at December 31, 2016 and 2015 , respectively. Fixed income securities including corporate bonds of companies from diversified industries, U.S. Treasuries and other securities, which may include mortgage-backed securities, asset-backed securities and collateralized mortgage obligations, constitute approximately 68% and 69% of the portfolio at December 31, 2016 and 2015 , respectively. The target investment allocation for 2017 is approximately 22% to 36% for equity securities and approximately 64% to 78% for fixed income securities. The methodology used to determine the rate of return on non-U.S. pension plan assets was based on average rate of earnings on funds invested and to be invested. Based on historical returns and future expectations, the Company believes the investment return assumptions are reasonable. The expected rate of return of plan assets represents an estimate of long-term returns on the investment portfolio. This assumption is reviewed by the trustees and varies with each of the plans. The overall investment strategy for Non-U.S. defined benefit plans is to achieve a mix of investments to support long-term growth and minimize volatility while maximizing rates of return by diversification of asset types, fund strategies and fund managers. Fixed income investments include investments in European government securities and European corporate bonds and constitute approximately 72% of the portfolio at December 31, 2016 and 2015 . Equity investments, multi-asset investment funds and real estate investments that invest in a diversified range of property principally in the retail, office and industrial/warehouse sectors constitute approximately 28% of the portfolio at December 31, 2016 and 2015 . Investments of the plans primarily include investments in companies from diversified industries with approximately 93% invested internationally and 7% invested in North America. The target investment allocations to support our investment strategy for 2017 are approximately 65% to 66% fixed income securities and approximately 34% to 35% equity securities, multi-asset investment funds and real estate investments. The fair value of cash in the table below is based on price quotations in an active market and therefore categorized under Level 1 of the ASC 820 hierarchy. The fair value of the investment funds is priced on the market value of the underlying investments in the portfolio and therefore categorized as Level 2 of the ASC 820 hierarchy. See Note B – “Basis of Presentation,” for an explanation of the ASC 820 hierarchy. On January 1, 2016, the Company adopted ASU 2015-07, “Fair Value Measurement (Topic 820); Disclosures for Investments in Certain Entities That Calculate Net Asset Value Per Share (or Its Equivalent)” (“ASU 2015-07”). This ASU includes a practical expedient to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured at the net asset value per share. ASU 2015-07 requires retroactive application and resulted in a reclassification of plan assets of $119.5 million in 2015 from Level 2 to Net asset value (“NAV”). The fair value of the Company’s plan assets at December 31, 2016 are as follows (in millions): U.S. Pension Plan Non-U.S. Pension Plans Total Level 1 Level 2 NAV Total Level 1 Level 2 NAV Cash, including money market funds $ 2.5 $ 2.5 $ — $ — $ 2.1 $ 2.1 $ — $ — U.S. equities 28.6 — — 28.6 5.9 — 5.9 — Non-U.S. equities 8.7 — — 8.7 21.2 — 21.2 — U.S. corporate bonds 56.4 — — 56.4 0.9 — 0.9 — Non-U.S. corporate bonds — — — — 17.7 — 17.7 — U.S. government securities 12.7 — — 12.7 0.6 — 0.6 — Non-U.S. government securities 0.3 — — 0.3 29.3 — 29.3 — Real estate — — — — 2.8 — 2.8 — Other securities 7.9 — — 7.9 27.8 — 27.8 — Total investments measured at fair value $ 117.1 $ 2.5 $ — $ 114.6 $ 108.3 $ 2.1 $ 106.2 $ — The fair value of the Company’s plan assets at December 31, 2015 are as follows (in millions): U.S. Pension Plan Non-U.S. Pension Plans Total Level 1 Level 2 NAV Total Level 1 Level 2 NAV Cash, including money market funds $ 3.6 $ 3.6 $ — $ — $ 4.4 $ 4.4 $ — $ — U.S. equities 28.5 — — 28.5 6.3 — 6.3 — Non-U.S. equities 9.3 — — 9.3 21.7 — 21.7 — U.S. corporate bonds 58.7 — — 58.7 0.1 — 0.1 — Non-U.S. corporate bonds — — — — 20.3 — 20.3 — U.S. government securities 14.0 — — 14.0 — — — — Non-U.S. government securities 0.1 — — 0.1 29.8 — 29.8 — Real estate — — — — 3.4 — 3.4 — Other securities 8.9 — — 8.9 25.2 — 25.2 — Total investments measured at fair value $ 123.1 $ 3.6 $ — $ 119.5 $ 111.2 $ 4.4 $ 106.8 $ — The Company plans to contribute approximately $1 million to its U.S. defined benefit pension and post-retirement plans and approximately $7 million to its non-U.S. defined benefit pension plans in 2017 . During the year ended December 31, 2016 , the Company contributed $1.4 million to its U.S. defined benefit pension plans and post-retirement plans and $6.7 million to its non-U.S. defined benefit pension plans. The Company’s estimated future benefit payments under its plans are as follows (in millions): Year Ending December 31, U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits 2017 $ 11.6 $ 8.4 $ 0.5 2018 $ 11.4 $ 6.6 $ 0.4 2019 $ 11.3 $ 6.9 $ 0.4 2020 $ 11.4 $ 7.1 $ 0.4 2021 $ 11.2 $ 7.6 $ 0.3 2022-2026 $ 54.5 $ 41.5 $ 1.4 For the other benefits, for measurement purposes, a 6.50% rate of increase in the per capita cost of covered health care benefits was assumed for 2017 , decreasing one-half percentage point per year until it reaches 4.50% for 2021 and thereafter. Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects (in millions): 1-Percentage- Point Increase 1-Percentage- Point Decrease Effect on total service and interest cost components $ — $ — Effect on post-retirement benefit obligation $ 0.2 $ (0.2 ) |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY On December 31, 2016 , there were 129.6 million shares of Common Stock issued and 105.0 million shares of Common Stock outstanding. Of the 170.4 million unissued shares of Common Stock at that date, 3.5 million shares of Common Stock were reserved for issuance for the exercise of stock options and the vesting of restricted stock. Common Stock in Treasury. The Company values treasury stock on an average cost basis. As of December 31, 2016 , the Company held 24.6 million shares of Common Stock in treasury totaling $935.1 million , including 0.9 million shares held in a trust for the benefit of the Company’s Deferred Compensation Plan at a total of $19.7 million . Preferred Stock. The Company’s certificate of incorporation was amended in June 1998 to authorize 50.0 million shares of preferred stock, $0.01 par value per share. As of December 31, 2016 and 2015 , there were no shares of preferred stock outstanding. Long-Term Incentive Plans. In May 2009, the stockholders approved the Terex Corporation 2009 Omnibus Incentive Plan (the “2009 Plan”). The purpose of the 2009 Plan is to provide a means whereby employees, directors and third-party service providers of the Company develop a sense of proprietorship and personal involvement in the development and financial success of the Company, and to encourage them to devote their best efforts to the business of the Company, thereby advancing the interests of the Company and its stockholders. The 2009 Plan provides for incentive compensation in the form of (i) options to purchase shares of Common Stock, (ii) stock appreciation rights, (iii) restricted stock awards and restricted stock units, (iv) other stock awards, (v) cash awards, and (vi) performance awards. The maximum number of shares available for issuance under the 2009 Plan is 8.0 million shares plus the number of shares remaining available for issuance under the Terex Corporation 2000 Incentive Plan (the “2000 Plan”) and the 1996 Terex Corporation Long-Term Incentive Plan (the “1996 Plan”). As of December 31, 2016 , 2.5 million shares were available for grant under the 2009 Plan. In May 2000, the stockholders approved the 2000 Plan. The purpose of the 2000 Plan is to assist the Company in attracting and retaining selected individuals to serve as directors, officers, consultants, advisers and employees of the Company and its subsidiaries and affiliates who will contribute to the Company’s success and to achieve long-term objectives which will inure to the benefit of all stockholders of the Company through the additional incentive inherent in the ownership of the Common Stock. The maximum number of shares available for issuance under the 2000 Plan was 12.0 million shares plus any shares related to awards under the 2000 Plan that were not issued or were subsequently forfeited, expired or otherwise terminated. In May 1996, the stockholders approved the 1996 Plan. The maximum number of shares available for issuance under the 1996 Plan was 4.0 million shares plus any shares related to awards under the 1996 Plan that were not issued or were subsequently forfeited, expired or otherwise terminated. Substantially all stock option grants under the 2000 Plan and the 1996 Plan vested over a four year period and have a contractual life of ten years. There were no options granted during the years ended December 31, 2016 , 2015 or 2014 , and the intrinsic value of all options outstanding is zero. The following table is a summary of stock options under all of the Company’s plans. Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2015 141,223 $ 47.50 Exercised — $ — Canceled or expired (128,164 ) $ 45.71 Outstanding at December 31, 2016 13,059 $ 65.17 0.60 $ — Exercisable at December 31, 2016 13,059 $ 65.17 0.60 $ — Vested at December 31, 2016 13,059 $ 65.17 0.60 $ — Under the 2009 Plan, 2000 Plan and the 1996 Plan, approximately 11% of all restricted stock awards outstanding vest over a four year period and approximately 89% of all restricted stock awards vest over a three year period with approximately 70% of these awards vesting on the first three anniversary dates and approximately 30% vesting at the end of the three year period. Approximately 38% of the outstanding restricted stock awards are subject to performance targets and market conditions that may or may not be met and for which the performance period has not yet been completed. The fair value of restricted stock awards is based on the market price at the date of grant except for 0.9 million shares based on a market condition. The Company uses the Monte Carlo method to provide grant date fair value for 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 valuations: Grant date Grant date Grant date Grant date March 3, 2016 March 5, 2015 March 5, 2015 February 26, 2014 Dividend yields 1.22% 0.91% 0.91% 0.46% Expected volatility 45.59% 45.48% 37.00% 56.84% Risk free interest rate 0.97% 0.98% 0.58% 0.63% Expected life (in years) 3 3 2 3 Grant date fair value per share $29.24 $28.10 $25.60 $53.17 As of December 31, 2016 , unrecognized compensation costs related to restricted stock totaled approximately $40.6 million , which will be expensed over a weighted average period of 1.8 years . The grant date weighted average fair value for restricted stock awards during the years ended December 31, 2016 , 2015 and 2014 was $23.95 , $26.83 and $44.23 , respectively. The total fair value of shares vested for restricted stock awards was $35.1 million , $42.6 million and $36.2 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. During the year ended December 31, 2016 , the Company issued 64 thousand shares of its outstanding Common Stock which were contributed into a deferred compensation plan under a Rabbi Trust. The following table is a summary of restricted stock awards under all of the Company’s plans: Restricted Stock Awards Weighted Average Grant Date Fair Value Nonvested at December 31, 2015 3,092,943 $ 30.29 Granted 2,015,229 $ 23.95 Vested (1,034,666 ) $ 33.94 Canceled, expired or other (542,318 ) $ 29.61 Nonvested at December 31, 2016 3,531,188 $ 25.42 Tax benefits associated with stock-based compensation were $12.6 million , $12.4 million and $14.6 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The excess tax benefit for all stock-based compensation is included in the Consolidated Statement of Cash Flows as an operating cash outflow and a financing cash inflow. Comprehensive Income (Loss). The following table reflects the accumulated balances of other comprehensive income (loss) (in millions): Accumulated Other Comprehensive Income (Loss) Attributable to Terex Corporation Cumulative Translation Adjustment Derivative Hedging Adjustment Debt & Equity Securities Adjustment Pension Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2014 $ (7.9 ) $ 2.7 $ — $ (111.3 ) $ (116.5 ) Current year change (237.6 ) (3.4 ) 1.6 (73.9 ) (313.3 ) Balance at December 31, 2014 (245.5 ) (0.7 ) 1.6 (185.2 ) (429.8 ) Current year change (247.2 ) 3.0 (7.9 ) 32.3 (219.8 ) Balance at December 31, 2015 (492.7 ) 2.3 (6.3 ) (152.9 ) (649.6 ) Current year change (122.6 ) (4.7 ) 6.9 (9.4 ) (129.8 ) Balance at December 31, 2016 $ (615.3 ) $ (2.4 ) $ 0.6 $ (162.3 ) $ (779.4 ) Accumulated Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest Cumulative Translation Adjustment Derivative Hedging Adjustment Debt & Equity Securities Adjustment Pension Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2014 $ 0.9 $ — $ — $ — $ 0.9 Current year change (0.1 ) — — — (0.1 ) Balance at December 31, 2014 0.8 — — — 0.8 Current year change (0.1 ) — — — (0.1 ) Balance at December 31, 2015 0.7 — — — 0.7 Current year change (0.4 ) — — — (0.4 ) Balance at December 31, 2016 $ 0.3 $ — $ — $ — $ 0.3 Accumulated Other Comprehensive Income (Loss) Cumulative Translation Adjustment Derivative Hedging Adjustment Debt & Equity Securities Adjustment Pension Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2014 $ (7.0 ) $ 2.7 $ — $ (111.3 ) $ (115.6 ) Current year change (237.7 ) (3.4 ) 1.6 (73.9 ) (313.4 ) Balance at December 31, 2014 (244.7 ) (0.7 ) 1.6 (185.2 ) (429.0 ) Current year change (247.3 ) 3.0 (7.9 ) 32.3 (219.9 ) Balance at December 31, 2015 (492.0 ) 2.3 (6.3 ) (152.9 ) (648.9 ) Current year change (123.0 ) (4.7 ) 6.9 (9.4 ) (130.2 ) Balance at December 31, 2016 $ (615.0 ) $ (2.4 ) $ 0.6 $ (162.3 ) $ (779.1 ) As of December 31, 2016 , accumulated other comprehensive income for the pension liability adjustment and the derivative hedging adjustment are net of a tax benefit of $59.9 million and $0.7 million , respectively. Changes in Accumulated Other Comprehensive Income (Loss) The table below presents changes in AOCI by component for the year ended December 31, 2016 and 2015 . All amounts are net of tax (in millions). Year ended December 31, 2016 Year ended December 31, 2015 CTA Derivative Hedging Adj. Debt & Equity Adj. Pension Liability Adj. Total CTA Derivative Hedging Adj. Debt & Equity Adj. Pension Liability Adj. Total Beginning balance $ (492.0 ) $ 2.3 $ (6.3 ) $ (152.9 ) $ (648.9 ) $ (244.7 ) $ (0.7 ) $ 1.6 $ (185.2 ) $ (429.0 ) Other comprehensive income before reclassifications (121.1 ) (5.7 ) 3.9 (16.1 ) (139.0 ) (247.3 ) 9.2 (7.9 ) 22.7 (223.3 ) Amounts reclassified from AOCI (1.9 ) 1.0 3.0 6.7 8.8 — (6.2 ) — 9.6 3.4 Net Other Comprehensive Income (Loss) (123.0 ) (4.7 ) 6.9 (9.4 ) (130.2 ) (247.3 ) 3.0 (7.9 ) 32.3 (219.9 ) Ending balance $ (615.0 ) $ (2.4 ) $ 0.6 $ (162.3 ) $ (779.1 ) $ (492.0 ) $ 2.3 $ (6.3 ) $ (152.9 ) $ (648.9 ) Share Repurchases and Dividends In February 2015, the Company announced authorization by its Board of Directors for the repurchase of up to $200 million of the Company’s outstanding shares of common stock. During the year ended December 31, 2016, the Company repurchased 3.5 million shares for $81.3 million under this program. During the year ended December 31, 2015, the Company repurchased 1.9 million shares for $50.0 million . In February 2017, the Company’s Board of Directors announced authorization for the repurchase of up to an additional $350 million of the Company’s outstanding shares of common stock. The Company’s Board of Directors declared and paid a dividend of $0.07 and $0.06 per share in each quarter of 2016 and 2015, respectively. Additionally, the Company’s Board of Directors declared a dividend of $0.08 per share in the first quarter of 2017 which will be paid in March 2017. |
LITIGATION AND CONTINGENCIES
LITIGATION AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION AND CONTINGENCIES | LITIGATION AND CONTINGENCIES General The Company is involved in various legal proceedings, including product liability, general liability, workers’ compensation liability, employment, commercial and intellectual property litigation, which have arisen in the normal course of operations. The Company is insured for product liability, general liability, workers’ compensation, employer’s liability, property damage and other insurable risk required by law or contract, with retained liability or deductibles. The Company records and maintains an estimated liability in the amount of management’s estimate of the Company’s aggregate exposure for such retained liabilities and deductibles. For such retained liabilities and deductibles, the Company determines its exposure based on probable loss estimations, which requires such losses to be both probable and the amount or range of probable loss to be estimable. The Company believes it has made appropriate and adequate reserves and accruals for its current contingencies and the likelihood of a material loss beyond amounts accrued is remote. The Company believes the outcome of such matters, individually and in aggregate, will not have a material adverse effect on its financial statements as a whole. However, outcomes of lawsuits cannot be predicted and, if determined adversely, could ultimately result in the Company incurring significant liabilities which could have a material adverse effect on its results of operations. Securities and Stockholder Derivative Lawsuits The Company has received complaints seeking certification of class action lawsuits as follows: • A consolidated class action complaint for violations of securities laws in the securities lawsuit was filed in the United States District Court, District of Connecticut on November 18, 2010 and is entitled Sheet Metal Workers Local 32 Pension Fund and Ironworkers St. Louis Council Pension Fund, individually and on behalf of all others similarly situated v. Terex Corporation, et al. • A stockholder derivative complaint for violation of the Securities and Exchange Act of 1934, breach of fiduciary duty, waste of corporate assets and unjust enrichment was filed on April 12, 2010 in the United States District Court, District of Connecticut and is entitled Peter Derrer, derivatively on behalf of Terex Corporation v. Ronald M. DeFeo, Phillip C. Widman, Thomas J. Riordan, G. Chris Andersen, Donald P. Jacobs, David A. Sachs, William H. Fike, Donald DeFosset, Helge H. Wehmeier, Paula H.J. Cholmondeley, Oren G. Shaffer, Thomas J. Hansen, and David C. Wang, and Terex Corporation. These lawsuits generally cover the period from February 2008 to February 2009 and allege, among other things, that certain of the Company’s SEC filings and other public statements contained false and misleading statements which resulted in damages to the Company, the plaintiffs and the members of the purported class when they purchased the Company’s securities and in the stockholder derivative complaint, that there were breaches of fiduciary duties. The stockholder derivative complaint also alleges waste of corporate assets relating to the repurchase of the Company’s shares in the market and unjust enrichment as a result of securities sales by certain officers and directors. The complaints seek, among other things, unspecified compensatory damages, costs and expenses. As a result, the Company is unable to estimate a possible loss or a range of losses for these lawsuits. The stockholder derivative complaint also seeks amendments to the Company’s corporate governance procedures in addition to unspecified compensatory damages from the individual defendants in its favor. The Company believes that the allegations in the suits are without merit, and Terex, its directors and the named executives will continue to vigorously defend against them. The Company believes that it has acted, and continues to act, in compliance with federal securities laws and Delaware law with respect to these matters. Accordingly, the Company has filed motions to dismiss the securities lawsuit. The plaintiff in the stockholder derivative lawsuit has agreed with the Company to put this lawsuit on hold pending the outcome of the motion to dismiss in connection with the securities lawsuit. Demag Cranes AG Appraisal Proceedings In connection with the Company’s purchase of Demag Cranes AG (a component of MHPS), certain former shareholders of Demag Cranes AG initiated appraisal proceedings relating to (i) a domination and profit loss transfer agreement between Demag Cranes AG and Terex Germany GmbH & Co. KG (the “DPLA Proceeding”) and (ii) the squeeze out of the former Demag Cranes AG shareholders (the “Squeeze out Proceeding”) against the Company alleging that the Company did not pay fair value for the shares of Demag Cranes AG. The Company believes it did pay fair value for the shares of Demag Cranes AG and that no further payment from the Company to any former shareholders of Demag Cranes AG is required. The initial court ruling in the DPLA Proceeding was in favor of the Company and against the claimants ( i.e. no increase in compensation was owed to the former shareholders). However, the court did rule that the costs of the proceedings, including legal costs for both parties, would need to be borne by Terex. This initial court ruling in the DPLA Proceeding is being appealed. The Squeeze out Proceeding is still in the relatively early stages. While the Company believes the position of the former shareholders of Demag Cranes AG is without merit and is vigorously opposing it, no assurance can be given as to the final resolution of these disputes or that the Company will not ultimately be required to make an additional payment as a result of such disputes, which amount could be material. Other The Company is involved in various other legal proceedings, which have arisen in the normal course of its operations. The Company has recorded provisions for estimated losses in circumstances where a loss is probable and the amount or range of possible amounts of the loss is estimable. Credit Guarantees Customers of the Company from time to time may fund the acquisition of the Company’s equipment through third-party finance companies. In certain instances, the Company may provide a credit guarantee to the finance company, by which the Company agrees to make payments to the finance company should the customer default. The maximum liability of the Company is generally limited to its customer’s remaining payments due to the finance company at the time of default. In the event of customer default, the Company or the finance company is generally able to recover and dispose of the equipment at a minimum loss, if any, to the Company. As of December 31, 2016 and 2015 , the Company’s maximum exposure to such credit guarantees was $42.3 million and $39.8 million , respectively, including total guarantees issued by a German subsidiary, part of the Cranes segment, of $16.3 million and $19.0 million , respectively (credit guarantees as of December 31, 2016 and 2015 include $2.0 million and $1.7 million of guarantees related to discontinued operations, respectively). The terms of these guarantees coincide with the financing arranged by the customer and generally do not exceed five years . Given the Company’s position as the original equipment manufacturer and its knowledge of end markets, the Company, when called upon to fulfill a guarantee, generally has been able to liquidate the financed equipment at a minimal loss, if any, to the Company. There can be no assurance that historical credit default experience will be indicative of future results. The Company’s ability to recover losses experienced from its guarantees may be affected by economic conditions in effect at the time of loss. Residual Value and Buyback Guarantees The Company issues residual value guarantees under sales-type leases. A residual value guarantee involves a guarantee that a piece of equipment will have a minimum fair market value at a future date. Maximum exposure for residual value guarantees issued by the Company totaled $7.1 million and 3.7 million as of December 31, 2016 and 2015, respectively. The Company is generally able to mitigate risk associated with these guarantees because the maturity of guarantees is staggered, limiting the amount of used equipment entering the marketplace at any one time. The Company from time to time guarantees that it will buy equipment from its customers in the future at a stated price if certain conditions are met by the customer. Such guarantees are referred to as buyback guarantees. These conditions generally pertain to the functionality and state of repair of the machine. As of December 31, 2016 and 2015 , the Company’s maximum exposure pursuant to buyback guarantees was $3.5 million and $6.9 million , respectively ( $3.2 million and $6.6 million related to discontinued operations, respectively). The Company is generally able to mitigate risk of these guarantees because maturity of the guarantees is staggered, limiting the amount of used equipment entering the marketplace at any one time and through leveraging its access to the used equipment markets provided by the Company’s original equipment manufacturer status. See Note B – “Basis of Presentation – Revenue Recognition,” for a discussion of revenue recognition on arrangements with buyback guarantees. The Company has recorded an aggregate liability within Other current liabilities and Other non-current liabilities in the Consolidated Balance Sheet of $3.8 million and $3.1 million as of December 31, 2016 and 2015 , respectively, for the estimated fair value of all guarantees provided. There can be no assurance that the Company’s historical experience in used equipment markets will be indicative of future results. The Company’s ability to recover losses experienced from its guarantees may be affected by economic conditions in the used equipment markets at the time of loss. |
CONSOLIDATING FINANCIAL STATEME
CONSOLIDATING FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
CONSOLIDATING FINANCIAL STATEMENTS | CONSOLIDATING FINANCIAL STATEMENTS During 2012, the Company sold and issued the 6% Notes and the 6-1/2% Notes (collectively the “Notes”) (see Note O – “Long-Term Obligations”). The Notes are jointly and severally guaranteed by the following wholly-owned subsidiaries of the Company (the “Wholly-owned Guarantors”): CMI Terex Corporation, Genie Holdings, Inc., Genie Industries, Inc., Genie International, Inc., Powerscreen Holdings USA Inc., Powerscreen International LLC, Powerscreen North America Inc., Powerscreen USA, LLC, Terex Advance Mixer, Inc., Terex Aerials, Inc., Terex Financial Services, Inc., Terex South Dakota, Inc., Terex USA, LLC, Terex Utilities, Inc. and Terex Washington, Inc. Wholly-owned Guarantors are 100% owned by the Company. All of the guarantees are full and unconditional. The guarantees of the Wholly-owned Guarantors are subject to release in limited circumstances only upon the occurrence of certain customary conditions. No subsidiaries of the Company except the Wholly-owned Guarantors have provided a guarantee of the Notes. The following summarized condensed consolidating financial information for the Company segregates the financial information of Terex Corporation, the Wholly-owned Guarantors and the non-guarantor subsidiaries. The results and financial position of businesses acquired are included from the dates of their respective acquisitions. Terex Corporation consists of parent company operations. Subsidiaries of the parent company are reported on the equity basis. Wholly-owned Guarantors combine the operations of the Wholly-owned Guarantor subsidiaries. Subsidiaries of Wholly-owned Guarantors that are not themselves guarantors are reported on the equity basis. Non-guarantor subsidiaries combine the operations of subsidiaries which have not provided a guarantee of the Notes. Subsidiaries of non-guarantor subsidiaries that are guarantors are reported on the equity basis. Debt and goodwill allocated to subsidiaries are presented on a “push-down” accounting basis. In December 2014, the Company sold a majority interest in one of its wholly-owned guarantor subsidiaries, A.S.V. Inc. ("ASV"). As a result, ASV and its wholly-owned subsidiary were no longer guarantors of the various notes of the Company and were deconsolidated by the Company at December 31, 2014. The changes made to wholly-owned guarantor subsidiaries did not impact the Company's previously reported consolidated net operating results, financial position or cash flows. The condensed consolidating statements of income (loss) and cash flows for the year ended December 31, 2014 have been retrospectively adjusted to reflect this update to our wholly-owned guarantor subsidiaries as though ASV had been a non-guarantor in all applicable periods presented. TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) YEAR ENDED DECEMBER 31, 2016 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net sales $ 5.9 $ 2,473.6 $ 2,741.2 $ (777.6 ) $ 4,443.1 Cost of goods sold (5.1 ) (2,160.4 ) (2,324.7 ) 759.5 (3,730.7 ) Gross profit 0.8 313.2 416.5 (18.1 ) 712.4 Selling, general and administrative expenses (72.0 ) (240.4 ) (389.9 ) 18.1 (684.2 ) Goodwill and intangible asset impairment — (43.4 ) (132.6 ) — (176.0 ) Income (loss) from operations (71.2 ) 29.4 (106.0 ) — (147.8 ) Interest income 96.9 68.7 1.9 (163.2 ) 4.3 Interest expense (149.2 ) (8.4 ) (107.6 ) 163.2 (102.0 ) Income (loss) from subsidiaries 43.5 8.2 (4.1 ) (47.6 ) — Other income (expense) – net (56.9 ) 49.5 (17.8 ) — (25.2 ) Income (loss) from continuing operations before income taxes (136.9 ) 147.4 (233.6 ) (47.6 ) (270.7 ) (Provision for) benefit from income taxes (56.4 ) 43.5 90.3 — 77.4 Income (loss) from continuing operations (193.3 ) 190.9 (143.3 ) (47.6 ) (193.3 ) Income from discontinued operations – net of tax 14.3 6.4 13.9 (20.3 ) 14.3 Gain (loss) on disposition of discontinued operations – net of tax 0.5 — 3.0 — 3.5 Net income (loss) (178.5 ) 197.3 (126.4 ) (67.9 ) (175.5 ) Net loss (income) from continuing operations attributable to noncontrolling interest — — 0.3 — 0.3 Net loss (income) from discontinued operations attributable to noncontrolling interest — — (0.9 ) — (0.9 ) Net income (loss) attributable to Terex Corporation $ (178.5 ) $ 197.3 $ (127.0 ) $ (67.9 ) $ (176.1 ) Comprehensive income (loss), net of tax $ (305.9 ) $ 195.8 $ (112.9 ) $ (82.7 ) $ (305.7 ) Comprehensive loss (income) attributable to noncontrolling interest — — (0.2 ) — (0.2 ) Comprehensive income (loss) attributable to Terex Corporation $ (305.9 ) $ 195.8 $ (113.1 ) $ (82.7 ) $ (305.9 ) TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) YEAR ENDED DECEMBER 31, 2015 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net sales $ 10.0 $ 3,008.0 $ 2,928.0 $ (924.3 ) $ 5,021.7 Cost of goods sold (8.0 ) (2,503.5 ) (2,463.3 ) 924.3 (4,050.5 ) Gross profit 2.0 504.5 464.7 — 971.2 Selling, general and administrative expenses (26.8 ) (260.5 ) (360.2 ) — (647.5 ) Income (loss) from operations (24.8 ) 244.0 104.5 — 323.7 Interest income 103.6 68.7 1.9 (170.4 ) 3.8 Interest expense (155.2 ) (6.5 ) (116.8 ) 170.4 (108.1 ) Income (loss) from subsidiaries 239.3 8.6 (3.0 ) (244.9 ) — Other income (expense) – net (67.7 ) 41.1 2.9 — (23.7 ) Income (loss) from continuing operations before income taxes 95.2 355.9 (10.5 ) (244.9 ) 195.7 (Provision for) benefit from income taxes 33.0 (79.5 ) (21.0 ) — (67.5 ) Income (loss) from continuing operations 128.2 276.4 (31.5 ) (244.9 ) 128.2 Income (loss) from discontinued operations – net of tax 17.5 2.4 18.6 (21.1 ) 17.4 Gain (loss) on disposition of discontinued operations – net of tax 0.7 — 2.7 — 3.4 Net income (loss) 146.4 278.8 (10.2 ) (266.0 ) 149.0 Net loss (income) from continuing operations attributable to noncontrolling interest — — 0.2 — 0.2 Net loss (income) from discontinued operations attributable to noncontrolling interest — — (3.3 ) — (3.3 ) Net income (loss) attributable to Terex Corporation $ 146.4 $ 278.8 $ (13.3 ) $ (266.0 ) $ 145.9 Comprehensive income (loss), net of tax (73.9 ) 277.1 (166.3 ) (107.8 ) (70.9 ) Comprehensive loss (income) attributable to noncontrolling interest — — (3.0 ) — (3.0 ) Comprehensive income (loss) attributable to Terex Corporation $ (73.9 ) $ 277.1 $ (169.3 ) $ (107.8 ) $ (73.9 ) TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) YEAR ENDED DECEMBER 31, 2014 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net sales $ 42.5 $ 3,257.0 $ 3,210.2 $ (1,025.7 ) $ 5,484.0 Cost of goods sold (39.2 ) (2,679.8 ) (2,739.2 ) 1,025.7 (4,432.5 ) Gross profit 3.3 577.2 471.0 — 1,051.5 Selling, general and administrative expenses (29.4 ) (237.4 ) (384.7 ) — (651.5 ) Income (loss) from operations (26.1 ) 339.8 86.3 — 400.0 Interest income 129.7 73.8 3.9 (201.4 ) 6.0 Interest expense (170.5 ) (16.6 ) (137.0 ) 201.4 (122.7 ) Income (loss) from subsidiaries 348.8 9.4 (2.9 ) (355.3 ) — Other income (expense) – net (36.1 ) 4.7 26.7 — (4.7 ) Income (loss) from continuing operations before income taxes 245.8 411.1 (23.0 ) (355.3 ) 278.6 (Provision for) benefit from income taxes 6.2 (24.3 ) (8.5 ) — (26.6 ) Income (loss) from continuing operations 252.0 386.8 (31.5 ) (355.3 ) 252.0 Income (loss) from discontinued operations – net of tax 8.9 5.4 8.0 (13.4 ) 8.9 Gain (loss) on disposition of discontinued operations – net of tax 7.3 — 50.7 0.6 58.6 Net income (loss) 268.2 392.2 27.2 (368.1 ) 319.5 Net loss (income) from continuing operations attributable to noncontrolling interest — — 1.5 — 1.5 Net loss (income) from discontinued operations attributable to noncontrolling interest — — (2.0 ) — (2.0 ) Net income (loss) attributable to Terex Corporation $ 268.2 $ 392.2 $ 26.7 $ (368.1 ) $ 319.0 Comprehensive income (loss), net of tax $ 5.7 $ 388.8 $ (223.1 ) $ (165.3 ) $ 6.1 Comprehensive loss (income) attributable to noncontrolling interest — — (0.4 ) — (0.4 ) Comprehensive income (loss) attributable to Terex Corporation $ 5.7 $ 388.8 $ (223.5 ) $ (165.3 ) $ 5.7 TEREX CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2016 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 50.7 $ 0.4 $ 377.4 $ — $ 428.5 Trade receivables – net 5.2 167.0 340.3 — 512.5 Intercompany receivables 28.7 37.8 88.8 (155.3 ) — Inventories 0.5 310.6 542.7 — 853.8 Prepaid and other current assets 55.3 71.1 46.4 — 172.8 Current assets held for sale — 15.1 717.8 — 732.9 Total current assets 140.4 602.0 2,113.4 (155.3 ) 2,700.5 Property, plant and equipment – net 32.7 148.4 123.5 — 304.6 Goodwill — 120.7 139.0 — 259.7 Non-current intercompany receivables 1,257.8 2,917.2 13.1 (4,188.1 ) — Investment in and advances to (from) subsidiaries 4,120.8 90.9 94.1 (4,278.6 ) 27.2 Other assets 109.8 175.8 257.9 — 543.5 Non-current assets held for sale 0.1 119.7 1,051.5 — 1,171.3 Total assets $ 5,661.6 $ 4,174.7 $ 3,792.5 $ (8,622.0 ) $ 5,006.8 Liabilities and Stockholders’ Equity Current liabilities Notes payable and current portion of long-term debt $ — $ 0.2 $ 13.6 $ — $ 13.8 Trade accounts payable 40.3 197.6 284.8 — 522.7 Intercompany payables 4.0 42.3 109.0 (155.3 ) — Accruals and other current liabilities 62.3 113.3 241.1 — 416.7 Current liabilities held for sale — 13.3 440.5 — 453.8 Total current liabilities 106.6 366.7 1,089.0 (155.3 ) 1,407.0 Long-term debt, less current portion 1,140.4 — 421.6 — 1,562.0 Non-current intercompany payables 2,884.3 — 1,303.8 (4,188.1 ) — Other non-current liabilities 45.6 34.8 124.1 — 204.5 Non-current liabilities held for sale — — 312.1 — 312.1 Total stockholders’ equity 1,484.7 3,773.2 541.9 (4,278.6 ) 1,521.2 Total liabilities, noncontrolling interest and stockholders’ equity $ 5,661.6 $ 4,174.7 $ 3,792.5 $ (8,622.0 ) $ 5,006.8 TEREX CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 91.7 $ 0.2 $ 279.3 $ — $ 371.2 Trade receivables – net 5.2 241.7 456.4 — 703.3 Intercompany receivables 57.5 55.3 64.7 (177.5 ) — Inventories — 424.2 639.4 — 1,063.6 Prepaid and other current assets 108.6 33.9 110.0 — 252.5 Current assets held for sale — 17.1 732.5 — 749.6 Total current assets 263.0 772.4 2,282.3 (177.5 ) 3,140.2 Property, plant and equipment – net 57.9 145.9 168.1 — 371.9 Goodwill — 162.2 296.9 — 459.1 Non-current intercompany receivables 1,353.8 2,786.4 72.9 (4,213.1 ) — Investment in and advances to (from) subsidiaries 4,010.2 94.4 95.2 (4,154.5 ) 45.3 Other assets 29.2 104.3 305.5 — 439.0 Non-current assets held for sale — 29.5 1,131.0 — 1,160.5 Total assets $ 5,714.1 $ 4,095.1 $ 4,351.9 $ (8,545.1 ) $ 5,616.0 Liabilities and Stockholders’ Equity Current liabilities Notes payable and current portion of long-term debt $ — $ 0.7 $ 65.7 $ — $ 66.4 Trade accounts payable 21.4 222.8 316.5 — 560.7 Intercompany payables 3.1 56.6 117.8 (177.5 ) — Accruals and other current liabilities 59.8 113.5 212.2 — 385.5 Current liabilities held for sale — 17.6 428.4 — 446.0 Total current liabilities 84.3 411.2 1,140.6 (177.5 ) 1,458.6 Long-term debt, less current portion 1,138.1 1.2 590.5 — 1,729.8 Non-current intercompany payables 2,562.3 — 1,650.8 (4,213.1 ) — Other non-current liabilities 52.0 35.3 129.8 — 217.1 Non-current liabilities held for sale — — 298.5 — 298.5 Total stockholders’ equity 1,877.4 3,647.4 541.7 (4,154.5 ) 1,912.0 Total liabilities, noncontrolling interest and stockholders’ equity $ 5,714.1 $ 4,095.1 $ 4,351.9 $ (8,545.1 ) $ 5,616.0 TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net cash provided by (used in) operating activities $ (253.0 ) $ 420.7 $ 193.6 $ 5.7 $ 367.0 Cash flows from investing activities Capital expenditures (2.4 ) (32.0 ) (38.6 ) — (73.0 ) Acquisitions, net of cash acquired — — (7.0 ) — (7.0 ) Proceeds (payments) from disposition of discontinued operations — — 3.5 — 3.5 Proceeds from sale of assets 0.1 5.4 61.7 — 67.2 Intercompany investing activities (1) 327.0 (97.5 ) (23.4 ) (206.1 ) — Other investing activities, net — — 26.6 (29.1 ) (2.5 ) Net cash provided by (used in) investing activities 324.7 (124.1 ) 22.8 (235.2 ) (11.8 ) Cash flows from financing activities Repayments of debt (1,013.2 ) (1.7 ) (271.4 ) — (1,286.3 ) Proceeds from issuance of debt 1,013.4 — 84.3 — 1,097.7 Proceeds from (purchase of) noncontrolling interest, net — — 2.9 — 2.9 Intercompany financing activities (1) — (297.1 ) 67.6 229.5 — Share repurchases (82.7 ) — — — (82.7 ) Dividends paid (30.0 ) — — — (30.0 ) Other financing activities, net — — (1.7 ) — (1.7 ) Net cash provided by (used in) financing activities (112.5 ) (298.8 ) (118.3 ) 229.5 (300.1 ) Effect of exchange rate changes on cash and cash equivalents — — (19.7 ) — (19.7 ) Net increase (decrease) in cash and cash equivalents (40.8 ) (2.2 ) 78.4 — 35.4 Cash and cash equivalents, beginning of period 91.6 3.1 371.8 — 466.5 Cash and cash equivalents, end of period $ 50.8 $ 0.9 $ 450.2 $ — $ 501.9 (1) Intercompany investing and financing activities include cash pooling activity between Terex Corporation and Wholly-Owned Guarantors. TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2015 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net cash provided by (used in) operating activities $ (510.0 ) $ 647.6 $ 277.4 $ (202.1 ) $ 212.9 Cash flows from investing activities Capital expenditures (1.6 ) (41.9 ) (60.3 ) — (103.8 ) Acquisitions, net of cash acquired — (52.1 ) (19.1 ) — (71.2 ) Proceeds from disposition of discontinued operations (3.4 ) — 3.2 — (0.2 ) Proceeds from sale of assets (1.0 ) 0.9 3.2 — 3.1 Intercompany investing activities (1) 713.3 — (231.6 ) (481.7 ) — Other investing activities, net — — 33.9 (34.5 ) (0.6 ) Net cash provided by (used in) investing activities 707.3 (93.1 ) (270.7 ) (516.2 ) (172.7 ) Cash flows from financing activities Repayments of debt (1,317.4 ) (7.8 ) (72.6 ) — (1,397.8 ) Proceeds from issuance of debt 1,188.7 — 274.1 — 1,462.8 Proceeds from (purchase of) noncontrolling interest, net — — (1.2 ) — (1.2 ) Intercompany financing activities (1) — (545.5 ) (172.8 ) 718.3 — Share repurchases (50.8 ) — — — (50.8 ) Dividends paid (25.8 ) — — — (25.8 ) Other financing activities, net 0.6 — (2.2 ) — (1.6 ) Net cash provided by (used in) financing activities (204.7 ) (553.3 ) 25.3 718.3 (14.4 ) Effect of exchange rate changes on cash and cash equivalents — — (37.5 ) — (37.5 ) Net increase (decrease) in cash and cash equivalents (7.4 ) 1.2 (5.5 ) — (11.7 ) Cash and cash equivalents, beginning of period 99.0 1.9 377.3 — 478.2 Cash and cash equivalents, end of period $ 91.6 $ 3.1 $ 371.8 $ — $ 466.5 (1) Intercompany investing and financing activities include cash pooling activity between Terex Corporation and Wholly-Owned Guarantors. TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2014 (in millions) Terex Corporation Wholly- owned Guarantors Non- guarantor Subsidiaries Intercompany Eliminations Consolidated Net cash provided by (used in) operating activities $ (113.4 ) $ 901.9 $ 35.2 $ (413.0 ) $ 410.7 Cash flows from investing activities Capital expenditures (4.4 ) (31.8 ) (45.3 ) — (81.5 ) Acquisitions, net of cash acquired — — (7.4 ) — (7.4 ) Other investments (20.0 ) — — — (20.0 ) Proceeds (payments) from disposition of discontinued operations 31.3 — 130.9 — 162.2 Proceeds from sale of assets 25.0 12.1 6.2 — 43.3 Intercompany investing activities (1) 363.5 — — (363.5 ) — Other investing activities, net — — (1.6 ) — (1.6 ) Net cash provided by (used in) investing activities 395.4 (19.7 ) 82.8 (363.5 ) 95.0 Cash flows from financing activities Repayments of debt (1,018.8 ) (3.2 ) (779.8 ) — (1,801.8 ) Proceeds from issuance of debt 1,011.0 7.2 666.0 — 1,684.2 Purchase of noncontrolling interest — — (78.6 ) — (78.6 ) Intercompany financing activities (1) — (888.2 ) 111.7 776.5 — Share repurchases (171.2 ) — — — (171.2 ) Dividends paid (21.8 ) — — — (21.8 ) Other financing activities, net 1.5 — (9.0 ) — (7.5 ) Net cash provided by (used in) financing activities (199.3 ) (884.2 ) (89.7 ) 776.5 (396.7 ) Effect of exchange rate changes on cash and cash equivalents — — (38.9 ) — (38.9 ) Net increase (decrease) in cash and cash equivalents 82.7 (2.0 ) (10.6 ) — 70.1 Cash and cash equivalents, beginning of period 16.3 3.9 387.9 — 408.1 Cash and cash equivalents, end of period $ 99.0 $ 1.9 $ 377.3 $ — $ 478.2 (1) Intercompany investing and financing activities include cash pooling activity between Terex Corporation and Wholly-Owned Guarantors. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Amounts in millions) Additions Balance Beginning of Year Charges to Earnings Other (1) Deductions (2) Balance End of Year Year ended December 31, 2016 Deducted from asset accounts: Allowance for doubtful accounts - Current $ 20.4 $ 5.6 $ (5.4 ) $ (4.1 ) $ 16.5 Allowance for doubtful accounts - Non-current 27.4 (1.5 ) (0.4 ) (0.3 ) 25.2 Reserve for inventory 76.8 37.0 (10.8 ) (19.7 ) 83.3 Valuation allowances for deferred tax assets 215.1 (50.8 ) (15.7 ) — 148.6 Totals $ 339.7 $ (9.7 ) $ (32.3 ) $ (24.1 ) $ 273.6 Year ended December 31, 2015 Deducted from asset accounts: Allowance for doubtful accounts - Current $ 18.3 $ 4.3 $ 1.7 $ (3.9 ) $ 20.4 Allowance for doubtful accounts - Non-current 28.6 3.2 (2.1 ) (2.3 ) 27.4 Reserve for inventory 77.9 18.2 (6.1 ) (13.2 ) 76.8 Valuation allowances for deferred tax assets 244.0 (20.6 ) (8.3 ) — 215.1 Totals $ 368.8 $ 5.1 $ (14.8 ) $ (19.4 ) $ 339.7 Year ended December 31, 2014 Deducted from asset accounts: Allowance for doubtful accounts - Current $ 38.4 $ — $ (5.7 ) $ (14.4 ) $ 18.3 Allowance for doubtful accounts - Non-current 29.1 1.5 (1.8 ) (0.2 ) 28.6 Reserve for inventory 86.7 17.6 (11.8 ) (14.6 ) 77.9 Valuation allowances for deferred tax assets 152.9 37.9 53.2 — 244.0 Totals $ 307.1 $ 57.0 $ 33.9 $ (29.2 ) $ 368.8 (1) Primarily represents the impact of foreign currency exchange, business divestitures and other amounts recorded to accumulated other comprehensive income (loss). (2) Primarily represents the utilization of established reserves, net of recoveries. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation . The Consolidated Financial Statements include the accounts of Terex Corporation and its majority-owned subsidiaries. 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. Reclassification. In conjunction with the adoption of new accounting standards, certain prior year debt issuance costs as well as certain other amounts have been reclassified to conform to the current year’s presentation, for all periods presented. Effective January 1, 2016, the Company reorganized the reportable segments to align with its new management reporting structure and business activities which resulted in the scrap material handling business in its former Construction segment being reassigned to its Materials Processing (“MP”) segment, certain non-operations related assets in the U.K. being reassigned from its former Construction segment to Corporate and Other category, and parts of its North America services business, which was formerly part of its Cranes segment being reassigned into its Aerial Work Platforms (“AWP”) and its former MHPS segments. Historical results have been reclassified to give effect to these changes. Effective as of June 30, 2016, further adjustments were made to the Company’s reportable segments as a result of definitive agreements to sell portions of its business and reorganize the management structure of other portions of its business, as discussed below. On May 16, 2016, the Company entered into an agreement to sell its MHPS business to Konecranes. As a result, the former MHPS segment is reported in discontinued operations in the Consolidated Statement of Income (Loss) for all periods presented, and in assets and liabilities held for sale in the Consolidated Balance Sheet at December 31, 2016 and 2015, and is no longer a reportable segment. During June and July of 2016, the Company entered into agreements to sell certain portions of its former Construction segment. As a result, concrete mixer trucks and concrete paver product lines from the former Construction segment have been reassigned to the Company’s MP segment and remaining product lines within the former Construction segment, such as loader backhoes and site dumpers, have been reassigned to the Corporate and Other category, as a result of changes in management responsibilities and reporting associated with these product lines. The effect of these changes has been shown in all periods presented. On May 30, 2014, the Company sold its truck business, which was consolidated in its former Construction segment, to Volvo Construction Equipment for approximately $160 million . As a result, reporting of the truck business has been included in discontinued operations for all periods presented. See Note A - “Sale of MHPS Business”, Note C - “Business Segment Information”, Note E - “Discontinued Operations and Assets and Liabilities Held for Sale” and Note L - “Goodwill and Intangible Assets, Net” for further information. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash equivalents consist of highly liquid investments with original maturities of three months or less. The carrying amount of cash and cash equivalents approximates its fair value. Cash and cash equivalents at December 31, 2016 and 2015 include $6.0 million and $18.0 million , respectively, which were not immediately available for use. These consist primarily of cash balances held in escrow to secure various obligations of the Company. |
Inventories | Inventories. Inventories are stated at the lower of cost or market (“LCM”) value. Cost is determined by the average cost and first-in, first-out (“FIFO”) methods (approximately 30% and 70% , respectively). In valuing inventory, the Company is required to make assumptions regarding the level of reserves required to value potentially obsolete or over-valued items at the lower of cost or market. These assumptions require the Company to analyze aging of and forecasted demand for its inventory, forecast future product sales prices, pricing trends and margins, and to make judgments and estimates regarding obsolete or excess inventory. Future product sales prices, pricing trends and margins are based on the best available information at that time including actual orders received, negotiations with the Company’s customers for future orders, including their plans for expenditures, and market trends for similar products. The Company’s judgments and estimates for excess or obsolete inventory are based on analysis of actual and forecasted usage. The valuation of used equipment taken in trade from customers requires the Company to use the best information available to determine the value of the equipment to potential customers. This value is subject to change based on numerous conditions. Inventory reserves are established taking into account age, frequency of use, or sale, and in the case of repair parts, the installed base of machines. While calculations are made involving these factors, significant management judgment regarding expectations for future events is involved. Future events that could significantly influence the Company’s judgment and related estimates include general economic conditions in markets where the Company’s products are sold, new equipment price fluctuations, actions of the Company’s competitors, including introduction of new products and technological advances, as well as new products and design changes the Company introduces. The Company makes adjustments to its inventory reserves based on the identification of specific situations and increases its inventory reserves accordingly. As further changes in future economic or industry conditions occur, the Company may revise estimates that were used to calculate its inventory reserves. At December 31, 2016 and 2015 , reserves for LCM, excess and obsolete inventory totaled $83.3 million and $76.8 million , respectively. If actual conditions are less favorable than those the Company has projected, the Company will increase its reserves for LCM, excess and obsolete inventory accordingly. Any increase in the Company’s reserves will adversely impact its results of operations. Establishment of a reserve for LCM, excess and obsolete inventory establishes a new cost basis in the inventory. Such reserves are not reduced until the product is sold. Shipping and handling costs for product shipments to customers are recorded in Cost of goods sold (“COGS”). |
Debt Issuance Costs | Debt Issuance Costs. Debt issuance costs incurred in securing the Company’s financing arrangements are capitalized and amortized over the term of the associated debt. As a result of the Company’s January 1, 2016 adoption of Accounting Standards Update (“ASU”) 2015-03, “Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, (“ASU 2015-03”) on a retrospective basis, debt issuance costs related to senior notes and term loans are presented in the balance sheet as a direct deduction from the carrying amount of the borrowing, consistent with debt discounts. Upon adoption, $21.1 million was reclassified from Other assets to Long-term debt, less current portion at December 31, 2015. Unamortized costs related to securing our revolving line of credit are presented in Other assets. Capitalized debt issuance costs related to debt that is extinguished early are charged to expense at the time of retirement. Debt issuance costs were $21.2 million and $26.3 million (net of accumulated amortization of $28.9 million and $23.5 million ) at December 31, 2016 and 2015 , respectively. |
Intangible Assets | Intangible Assets. Intangible assets include purchased patents, trademarks, customer relationships and other specifically identifiable assets and are amortized on a straight-line basis over the respective estimated useful lives, which range from one to fifty-seven years. Intangible assets are reviewed for impairment when circumstances warrant. |
Goodwill | Goodwill. Goodwill, representing the difference between total purchase price and fair value of assets (tangible and intangible) and liabilities at date of acquisition, is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which recorded value of such assets and liabilities exceed fair value. The Company selected October 1 as the date for the required annual impairment test. Goodwill is tested for impairment at the reporting unit level, which is defined as an operating segment or a component of an operating segment that constitutes a business for which discrete financial information with similar economic characteristics is available and the operating results are regularly reviewed by the Company’s chief operating decision maker. AWP, Cranes, and MP operating segments, plus the Material Handling (“MH”) business and Port Solutions (“PS”) business of our former MHPS segment, which is a discontinued operation, comprise the five reporting units for goodwill impairment testing purposes. We may elect to perform a qualitative analysis for our reporting units to determine whether it is more likely than not that fair value of the reporting unit is greater than its carrying value. If the qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we elect not to perform a qualitative analysis, we perform a quantitative analysis to determine whether a goodwill impairment exists. The quantitative goodwill impairment analysis is a two-step process. The first step used to identify potential impairment involves comparing each reporting unit’s estimated fair value to its carrying value, including goodwill. The Company uses an income approach, along with other relevant market information, derived from a discounted cash flow model to estimate fair value of its reporting units. Aggregate fair value of the Company’s reporting units is compared to the Company’s market capitalization on the valuation date to assess its reasonableness. Initial recognition of goodwill, as well as the annual review of carrying value of goodwill, requires that the Company develop estimates of future business performance. These estimates are used to derive expected cash flows and include assumptions regarding future sales levels and 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 Company’s weighted average cost of capital by reporting unit. Cost of capital is based on assumptions about interest rates as well as a risk-adjusted rate of return required by the Company’s equity investors. Changes in these estimates can impact present value of expected cash flows that is used in determining fair value of a given business. The second step of the process involves calculation of an implied fair value of goodwill for each reporting unit for which step one indicated impairment. Implied fair value of goodwill is determined by measuring excess of estimated fair value of the reporting unit over estimated fair values of individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If implied fair value of goodwill exceeds carrying value of goodwill assigned to the reporting unit, there is no impairment. If carrying value of goodwill assigned to a reporting unit exceeds implied fair value of goodwill, an impairment loss is recorded for the excess. An impairment loss cannot exceed carrying value of goodwill assigned to a reporting unit and the subsequent reversal of goodwill impairment losses is not permitted. As a result of the goodwill impairment tests performed as of October 1, 2016 , 2015 and 2014 , we recorded an impairment charge of $176.0 million in our Cranes segment during the year ended December 31, 2016 and an impairment charge of $11.3 million in our former MHPS segment, which is a discontinued operation, during the year ended December 31, 2015. There were no goodwill impairment charges recorded during 2014. See Note E – “Discontinued Operations and Assets and Liabilities Held for Sale” and Note L – “Goodwill and Intangible Assets, Net”. |
Property, Plant and Equipment | Property, Plant and Equipment . Property, plant and equipment are stated at cost. Expenditures for major renewals and improvements are capitalized while expenditures for maintenance and repairs not expected to extend the life of an asset beyond its normal useful life are charged to expense when incurred. Plant and equipment are depreciated over the estimated useful lives ( 1 - 40 years and 2 - 20 years, respectively) of the assets under the straight-line method of depreciation for financial reporting purposes and both straight-line and other methods for tax purposes. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. The Company’s policy is to assess the realizability of its long-lived assets, including definite-lived intangible assets, and to evaluate such assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (or group of assets) may not be recoverable. Impairment is determined to exist if estimated future undiscounted cash flows is less than carrying value. If an impairment is indicated, the assets are written down to their fair value, which is typically determined by a discounted cash flow analysis. Future cash flow projections include assumptions for future sales levels and the level of working capital needed to support the assets. The Company uses data developed by business segment management as well as macroeconomic data in making these calculations. The amount of any impairment then recognized would be calculated as the difference between estimated fair value and carrying value of the asset. Included in Selling, general & administrative expenses (“SG&A”) are approximately $41.2 million of asset impairments for the year ended December 31, 2016 and $1.4 million for the year ended December 31, 2015 . The impairment charges recognized during 2016 include a $16.6 million charge in Corporate and Other to write off information technology assets related to cessation of implementation efforts in several locations and $17.4 million in the Company’s Cranes segment for restructuring and facility exit activities. The Company also recorded a $20.5 million impairment charge in Other income (expense) - net to recognize impairment of a cost-basis investment. See Note N – “Restructuring and Other Charges” for information on asset impairments recorded as part of restructuring activities. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company determines the allowance based on historical customer review and current financial conditions. The Company reviews its allowance for doubtful accounts at least quarterly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis by type of receivable. Account balances are charged off against the allowance when the Company determines it is probable the receivable will not be recovered. There can be no assurance that the Company’s historical accounts receivable collection experience will be indicative of future results. The Company has off-balance sheet credit exposure related to guarantees provided to financial institutions as disclosed in Note S – “Litigation and Contingencies.” Substantially all receivables were trade receivables at December 31, 2016 and 2015 . Pursuant to terms of the Company’s trade accounts receivable factoring arrangements, certain of the Company’s subsidiaries may sell their trade accounts receivable. In certain cases, the Company continues to service such accounts. These trade receivables qualify for sales treatment under Accounting Standards Codification (“ASC”) 860, “Transfers and Servicing” (“ASC 860”) and accordingly, the proceeds are included in net cash provided by operating activities. The gross amount of trade receivables sold for years ended December 31, 2016 and 2015 totaled $620.4 million and $54.1 million , respectively. There were no trade receivables sold for the year ended December 31, 2014. The factoring discount paid upon sale is recorded as interest expense in the Consolidated Statement of Income (Loss). As of December 31, 2016, $64.3 million of receivables qualifying for sale treatment were outstanding and will continue to be serviced by us. |
Revenue Recognition | Revenue Recognition. Revenue and related costs are generally recorded when products are shipped and invoiced to either independently owned and operated dealers or to end-customers. Revenue generated in the United States is recognized when title and risk of loss pass from the Company to its customers which generally occurs upon shipment depending upon the shipping terms negotiated. The Company also has a policy which requires it to meet certain criteria in order to recognize revenue, including satisfaction of the following requirements: a) Persuasive evidence that an arrangement exists; b) The price to the buyer is fixed or determinable; c) Collectability is reasonably assured; and d) The Company has no significant obligations for future performance. In the United States, the Company has the ability to enter into a security agreement and receive a security interest in the product by filing an appropriate Uniform Commercial Code (“UCC”) financing statement. However, a significant portion of the Company’s revenue is generated outside of the United States. In many countries outside of the United States, as a matter of statutory law, a seller retains title to a product until payment is made. The laws do not provide for a seller’s retention of a security interest in goods in the same manner as established in the UCC. In these countries, the Company retains title to goods delivered to a customer until the customer makes payment so that the Company can recover the goods in the event of customer default on payment. In these circumstances, where the Company only retains title to secure its recovery in the event of customer default, the Company also has a policy requiring it to meet certain criteria in order to recognize revenue, including satisfaction of the following requirements: a) Persuasive evidence that an arrangement exists; b) Delivery has occurred or services have been rendered; c) The price to the buyer is fixed or determinable; d) Collectability is reasonably assured; e) The Company has no significant obligations for future performance; and f) The Company is not entitled to direct the disposition of the goods, cannot rescind the transaction, cannot prohibit the customer from moving, selling, or otherwise using the goods in the ordinary course of business and has no other rights of holding title that rest with a titleholder of property that is subject to a lien under the UCC. In circumstances where the sales transaction requires acceptance by the customer for items such as testing on site, installation, trial period or performance criteria, revenue is not recognized unless the following criteria have been met: a) Persuasive evidence that an arrangement exists; b) Delivery has occurred or services have been rendered; c) The price to the buyer is fixed or determinable; d) Collectability is reasonably assured; and e) The customer has given their acceptance, the time period has elapsed or the Company has otherwise objectively demonstrated that the criteria specified in the acceptance provisions have been satisfied. In addition to performance commitments, the Company analyzes factors such as the reason for the purchase to determine if revenue should be recognized. This analysis is done before the product is shipped and includes the evaluation of factors that may affect the conclusion related to the revenue recognition criteria as follows: a) Persuasive evidence that an arrangement exists; b) Delivery has occurred or services have been rendered; c) The price to the buyer is fixed or determinable; and d) Collectability is reasonably assured. Revenue from sales-type leases is recognized at the inception of the lease. Income from operating leases is recognized ratably over the term of the lease. The Company routinely sells equipment subject to operating leases and related lease payments. If the Company does not retain a substantial risk of ownership in the equipment, the transaction is recorded as a sale. If the Company does retain a substantial risk of ownership, the transaction is recorded as a borrowing, the operating lease payments are recognized as revenue over the term of the lease and the debt is amortized over a similar period. The Company, from time to time, issues buyback guarantees in conjunction with certain sales agreements. These primarily relate to trade value agreements (“TVAs”) in which a customer may trade in equipment in the future at a stated price/credit if the customer meets certain conditions. The trade-in price/credit is determined at the time of the original sale of equipment. In conjunction with the trade-in, these conditions include a requirement to purchase new equipment at fair market value at the time of trade-in, which fair value is required to be of equal or greater value than the original equipment cost. Other conditions also include the general functionality and state of repair of the machine. The Company has concluded that any credit provided to customers under a TVA/buyback guarantee, which is expected to be equal to or less than the fair value of the equipment returned on the trade-in date, is a guarantee to be accounted for in accordance with ASC 460, “Guarantees” (“ASC 460”). The original sale of equipment, accompanied by a buyback guarantee, is a multiple element transaction wherein the Company offers its customer the right, after some period of time, for a limited period of time, to exchange purchased equipment for a fixed price trade-in credit toward another of our products. The fixed price trade-in credit is accounted for under the guidance provided by ASC 460. Pursuant to this right, the Company has agreed to make a payment (in the form of a trade-in credit) to the customer contingent upon the customer exercising its right to trade in the original purchased equipment. Under the guidance of ASC 460, the Company records the fixed price trade-in credit at its fair value. Accordingly, as noted above, the Company has accounted for the trade-in credit as a separate deliverable in a multiple element arrangement. When a sales transaction includes multiple deliverables, such as sales of multiple products or sales of products and services that are delivered over multiple reporting periods, the multiple deliverables are evaluated to determine the units of accounting, and the entire fee from the arrangement is allocated to each unit of accounting based on the relative selling price. The selling price of a unit of accounting is determined using a selling price hierarchy. Vendor-specific objective evidence (“VSOE”) is established based upon the price charged for products and services that are sold separately in standalone transactions. If VSOE cannot be established, third-party evidence (“TPE”) is evaluated based on competitor prices for similar deliverables when sold separately. If neither VSOE or TPE is available, management's best estimate of selling price is established based upon the price at which the Company would sell the product on a standalone basis taking into consideration factors including, but not limited to, internal costs, gross margin objectives, pricing practices and market conditions. Revenue is recognized when revenue recognition criteria for each unit of accounting are met. |
Guarantees | Guarantees . The Company records a liability for the estimated fair value of guarantees issued pursuant to ASC 460. The Company recognizes a loss under a guarantee when its obligation to make payment under the guarantee is probable and the amount of the loss can be estimated. A loss would be recognized if the Company’s payment obligation under the guarantee exceeds the value it can expect to recover to offset such payment, primarily through the sale of the equipment underlying the guarantee. |
Accrued Warranties | Accrued Warranties . The Company records accruals for potential warranty claims based on its claim experience. The Company’s products are typically sold with a standard warranty covering defects that arise during a fixed period. Each business provides a warranty specific to the products it offers. The specific warranty offered by a business is a function of customer expectations and competitive forces. Warranty length is generally a fixed period of time, a fixed number of operating hours, or both. A liability for estimated warranty claims is accrued at the time of sale. The non-current portion of the warranty accrual is included in Other non-current liabilities in the Company’s Consolidated Balance Sheet. The liability is established using historical warranty claims experience for each product sold. Historical claims experience may be adjusted for known design improvements or for the impact of unusual product quality issues. Warranty reserves are reviewed quarterly to ensure critical assumptions are updated for known events that may affect the potential warranty liability. The following table summarizes the changes in the consolidated product warranty liability (in millions): Balance as of December 31, 2014 $ 57.2 Accruals for warranties issued during the period 63.2 Changes in estimates (1.3 ) Settlements during the year (64.0 ) Foreign exchange effect/other (2.1 ) Balance as of December 31, 2015 53.0 Accruals for warranties issued during the period 72.4 Changes in estimates (2.3 ) Settlements during the year (58.1 ) Foreign exchange effect/other (5.2 ) Balance as of December 31, 2016 $ 59.8 |
Accrued Product Liability | Accrued Product Liability. The Company records accruals for product liability claims when deemed probable and estimable based on facts and circumstances, and prior claims experience. Accruals for product liability claims are valued based upon the Company’s prior claims experience, including consideration of the jurisdiction, circumstances of the accident, type of loss or injury, identity of plaintiff, other potential responsible parties, analysis of outside legal counsel, analysis of internal product liability counsel and the experience of the Company’s director of product safety. Actual product liability costs could be different due to a number of variables such as the decisions of juries or judges. |
Defined Benefit Pension and Other Postretirement Benefits | Defined Benefit Pension and Other Post-retirement Benefits. The Company provides post-retirement benefits to certain former salaried and hourly employees and certain hourly employees covered by bargaining unit contracts that provide such benefits. The Company accounts for these benefits under ASC 715, “Compensation-Retirement Benefits” (“ASC 715”). ASC 715 requires balance sheet recognition of the overfunded or underfunded status of pension and post-retirement benefit plans. Under ASC 715, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in Accumulated other comprehensive income, net of tax effects, until they are amortized as a component of net periodic benefit cost. See Note Q – “Retirement Plans and Other Benefits.” |
Deferred Compensation | Deferred Compensation. The Company maintains a Deferred Compensation Plan, which is described more fully in Note Q – “Retirement Plans and Other Benefits.” The Company’s common stock, par value $0.01 per share (“Common Stock”) held in a rabbi trust pursuant to the Company’s Deferred Compensation Plan, is treated in a manner similar to treasury stock and is recorded at cost within Stockholders’ equity as of December 31, 2016 and 2015 . The plan obligations for participant deferrals in the Company’s Common Stock are classified as Additional paid-in capital within Stockholders’ equity. The total of the Company’s Common Stock required to settle this deferred compensation obligation is included in the denominator in both basic and diluted earnings per share calculations. |
Stock-Based Compensation | Stock-Based Compensation . At December 31, 2016 , the Company had stock-based employee compensation plans, which are described more fully in Note R – “Stockholders’ Equity.” The Company accounts for those plans under the recognition and measurement principles of ASC 718, “Compensation–Stock Compensation” (“ASC 718”). ASC 718 requires that expense resulting from all share-based payment transactions be recognized in the financial statements at fair value. |
Foreign Currency Translation | Foreign Currency Translation. Assets and liabilities of the Company’s non-U.S. operations are translated at year-end exchange rates. Income and expenses are translated at average exchange rates during the year. For operations whose functional currency is the local currency, translation adjustments are recorded in the Accumulated other comprehensive income component of Stockholders’ equity. Gains or losses resulting from foreign currency transactions are recorded in the accounts based on the underlying transaction. |
Derivatives | Derivatives. Derivative financial instruments are recorded in the Consolidated Balance Sheet at their fair value as either assets or liabilities. Changes in the fair value of derivatives are recorded each period in earnings or Accumulated other comprehensive income, depending on whether a derivative is designated and effective as part of a hedge transaction and, if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in Accumulated other comprehensive income are included in earnings in the periods in which earnings are affected by the hedged item. See Note M – “Derivative Financial Instruments.” |
Environmental Policies | Environmental Policies. Environmental expenditures that relate to current operations are either expensed or capitalized depending on the nature of the expenditure. Expenditures relating to conditions caused by past operations that do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial actions are probable and the costs can be reasonably estimated. Such amounts were not material at December 31, 2016 and 2015 . |
Research and Development Costs | Research, Development and Engineering Costs. Research, development and engineering costs are expensed as incurred. Such costs incurred in the development of new products or significant improvements to existing products are included in SG&A. Research and development costs were $86.2 million , $89.7 million and $102.3 million during 2016 , 2015 and 2014 , respectively. |
Income Taxes | Income Taxes . The Company accounts for income taxes using the asset and liability method. This method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial statement carrying amounts and the tax bases of assets and liabilities. See Note D – “Income Taxes.” |
Earnings Per Share | Earnings Per Share. Basic earnings (loss) per share is computed by dividing Net income (loss) attributable to Terex Corporation for the period by the weighted average number of shares of Common Stock outstanding. Diluted earnings (loss) per share is computed by dividing Net income (loss) attributable to Terex Corporation for the period by the weighted average number of shares of Common Stock outstanding and potential dilutive common shares. See Note F – “Earnings Per Share.” |
Fair Value Measurements | Fair Value Measurements. Assets and liabilities measured at fair value on a recurring basis under the provisions of ASC 820, “Fair Value Measurement and Disclosure” (“ASC 820”), include interest rate swap and foreign currency forward contracts discussed in Note M – “Derivative Financial Instruments.” These contracts are valued using a market approach, which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. ASC 820 establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Determining which category an asset or liability falls within this hierarchy requires judgment. The Company evaluates its hierarchy disclosures each quarter. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated current and non-current product warranty liability | The following table summarizes the changes in the consolidated product warranty liability (in millions): Balance as of December 31, 2014 $ 57.2 Accruals for warranties issued during the period 63.2 Changes in estimates (1.3 ) Settlements during the year (64.0 ) Foreign exchange effect/other (2.1 ) Balance as of December 31, 2015 53.0 Accruals for warranties issued during the period 72.4 Changes in estimates (2.3 ) Settlements during the year (58.1 ) Foreign exchange effect/other (5.2 ) Balance as of December 31, 2016 $ 59.8 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of business segment information | Included in Corporate and Other / Eliminations are the eliminations among the three segments, various construction product lines and on-book financing activities of TFS, as well as general and corporate items. Business segment information is presented below (in millions): Year Ended December 31, 2016 2015 2014 Net Sales AWP $ 1,977.8 $ 2,246.0 $ 2,403.0 Cranes 1,274.5 1,566.5 1,656.9 MP 944.5 940.1 938.9 Corporate and Other / Eliminations 246.3 269.1 485.2 Total $ 4,443.1 $ 5,021.7 $ 5,484.0 Income (loss) from Operations AWP $ 177.4 $ 270.2 $ 304.9 Cranes (321.7 ) 56.3 83.8 MP 86.3 68.6 65.6 Corporate and Other / Eliminations (89.8 ) (71.4 ) (54.3 ) Total $ (147.8 ) $ 323.7 $ 400.0 Depreciation and Amortization AWP $ 19.9 $ 15.3 $ 12.1 Cranes 21.5 21.0 28.3 MP 6.9 6.9 7.7 Corporate 26.0 33.4 51.0 Total $ 74.3 $ 76.6 $ 99.1 Capital Expenditures AWP $ 17.1 $ 38.0 $ 28.6 Cranes 13.2 13.8 14.0 MP 7.5 20.7 5.8 Corporate 20.3 9.0 9.9 Total $ 58.1 $ 81.5 $ 58.3 Sales between segments are generally priced to recover costs plus a reasonable markup for profit, which is eliminated in consolidation. December 31, 2016 2015 Identifiable Assets AWP $ 1,659.8 $ 1,701.2 Cranes 1,618.0 1,822.3 MP 1,104.9 1,073.4 Corporate and Other / Eliminations (1,280.1 ) (891.0 ) Assets held for sale 1,904.2 1,910.1 Total $ 5,006.8 $ 5,616.0 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Geographic Net Sales information is presented below (in millions): Year Ended December 31, 2016 2015 2014 Net Sales United States $ 2,131.4 $ 2,420.1 $ 2,552.7 United Kingdom 333.2 402.3 346.2 Germany 237.1 243.7 310.6 Other European countries 726.7 714.3 848.3 All other 1,014.7 1,241.3 1,426.2 Total $ 4,443.1 $ 5,021.7 $ 5,484.0 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | December 31, 2016 2015 Long-lived Assets United States $ 181.1 $ 203.8 United Kingdom 34.9 41.2 Germany 32.4 64.0 Other European countries 14.8 17.5 All other 41.4 45.4 Total $ 304.6 $ 371.9 |
INCOME TAXES INCOME TAXES (Tabl
INCOME TAXES INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income (loss) from continuing operations before income taxes are as follows (in millions): Year Ended December 31, 2016 2015 2014 United States $ (29.9 ) $ 212.2 $ 304.3 Foreign (240.8 ) (16.5 ) (25.7 ) Income (loss) from continuing operations before income taxes $ (270.7 ) $ 195.7 $ 278.6 |
Schedule of Components of Income Tax Expense (Benefit) | The major components of the Company’s provision for (benefit from) income taxes on continuing operations before income taxes are summarized below (in millions): Year Ended December 31, 2016 2015 2014 Current: Federal $ 31.5 $ 49.2 $ 1.6 State 6.2 3.1 7.6 Foreign 38.2 15.6 30.6 Current income tax provision (benefit) 75.9 67.9 39.8 Deferred: Federal (27.0 ) (3.7 ) 9.9 State (1.4 ) — (0.7 ) Foreign (124.9 ) 3.3 (22.4 ) Deferred income tax (benefit) provision (153.3 ) (0.4 ) (13.2 ) Total provision for (benefit from) income taxes $ (77.4 ) $ 67.5 $ 26.6 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the basis differences and loss carry forwards as of December 31, 2016 and 2015 for continuing operations are summarized below for major balance sheet captions (in millions): 2016 2015 Property, plant and equipment $ (16.8 ) $ (36.4 ) Intangibles (7.3 ) (27.6 ) Inventories 18.1 21.5 Accrued warranties and product liability 15.1 13.6 Loss carry forwards 214.3 215.8 Retirement plans 32.5 32.2 Accrued compensation and benefits 40.1 38.4 Investments 2.3 1.0 Currency translation adjustments (0.6 ) (0.3 ) Credit carry forwards 11.9 1.7 Other 20.8 31.3 Deferred tax assets valuation allowance (148.6 ) (215.1 ) Net deferred tax assets (liabilities) $ 181.8 $ 76.1 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s Provision for (benefit from) income taxes is different from the amount that would be provided by applying the statutory federal income tax rate to the Company’s Income (loss) from continuing operations before income taxes. The reasons for the difference are summarized as follows (in millions): Year Ended December 31, 2016 2015 2014 Tax at statutory federal income tax rate $ (94.7 ) $ 68.5 $ 97.5 State taxes (net of Federal benefit) 3.1 2.0 4.5 Change in valuation allowance (47.7 ) (22.3 ) 39.5 Foreign tax differential on income/losses of foreign subsidiaries (37.5 ) 12.2 (27.0 ) U.S. tax on multi-national operations 41.9 3.7 5.6 Change in foreign statutory rates 1.9 7.7 2.5 U.S. manufacturing and export incentives (2.0 ) (4.3 ) (6.2 ) Tax effect of dispositions 2.1 — (86.8 ) Impairment loss on goodwill and intangible assets 52.4 — — Other 3.1 — (3.0 ) Total provision for (benefit from) income taxes $ (77.4 ) $ 67.5 $ 26.6 |
Summary of Income Tax Contingencies | The following table summarizes the activity related to the Company’s total (including discontinued operations) unrecognized tax benefits (in millions). Amounts in 2014 have been adjusted to eliminate the impact of offsets, which are immaterial: Balance as of January 1, 2014 $ 88.4 Additions for current year tax positions 1.9 Additions for prior year tax positions 1.2 Reductions for prior year tax positions (10.9 ) Reductions for current year tax positions — Reductions for expiration of statute of limitations (2.4 ) Settlements (0.1 ) Acquired balances — Balance as of December 31, 2014 78.1 Additions for current year tax positions — Additions for prior year tax positions 1.7 Reductions for prior year tax positions (9.3 ) Reductions for current year tax positions — Reductions for expiration of statute of limitations (1.1 ) Settlements — Acquired balances — Balance as of December 31, 2015 69.4 Additions for current year tax positions — Additions for prior year tax positions 6.3 Reductions for prior year tax positions (3.1 ) Reductions for current year tax positions — Reductions for expiration of statute of limitations (5.0 ) Settlements (7.8 ) Acquired balances — Balance as of December 31, 2016 $ 59.8 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations presented in the Consolidated Financial Statements | The following table provides the amounts of assets and liabilities held for sale in the Consolidated Balance Sheet (in millions): December 31, 2016 December 31, 2015 MHPS Cranes Construction Total MHPS Assets Cash and cash equivalents $ 71.0 $ 1.2 $ 1.2 $ 73.4 $ 95.3 Trade receivables – net 243.5 3.1 24.4 271.0 236.0 Inventories 309.4 1.7 23.9 335.0 382.1 Prepaid and other current assets 49.9 0.5 3.1 53.5 36.2 Current assets held for sale $ 673.8 $ 6.5 $ 52.6 $ 732.9 $ 749.6 Property, plant and equipment – net $ 294.2 $ 0.8 $ 3.2 $ 298.2 $ 303.9 Goodwill 573.7 — — 573.7 564.1 Intangible assets – net 212.6 2.9 — 215.5 226.9 Impairment reserve — (1.7 ) (3.5 ) (5.2 ) — Other assets 86.4 1.1 1.6 89.1 65.6 Non-current assets held for sale $ 1,166.9 $ 3.1 $ 1.3 $ 1,171.3 $ 1,160.5 Liabilities Notes payable and current portion of long-term debt $ 13.1 $ — $ 1.3 $ 14.4 $ 13.8 Trade accounts payable 132.6 0.7 23.8 157.1 177.0 Accruals and other current liabilities 267.0 6.2 9.1 282.3 255.2 Current liabilities held for sale $ 412.7 $ 6.9 $ 34.2 $ 453.8 $ 446.0 Long-term debt, less current portion $ 2.4 $ — $ — $ 2.4 $ 0.1 Retirement plans 235.3 0.7 0.9 236.9 218.7 Other non-current liabilities 71.7 0.4 0.7 72.8 79.7 Non-current liabilities held for sale $ 309.4 $ 1.1 $ 1.6 $ 312.1 $ 298.5 The following table provides amounts of cash and cash equivalents presented in the Consolidated Statement of Cash Flows (in millions): December 31, 2016 December 31, 2015 December 31, 2014 Cash and cash equivalents: Cash and cash equivalents - continuing operations $ 428.5 $ 371.2 $ 392.6 Cash and cash equivalents - held for sale 73.4 95.3 85.6 Total cash and cash equivalents: $ 501.9 $ 466.5 $ 478.2 he following table provides supplemental cash flow information related to discontinued operations (in millions): Year Ended December 31, 2016 2015 2014 Non-cash operating items: Depreciation and amortization $ 22.4 $ 55.8 $ 66.4 Deferred taxes $ 15.8 $ (2.2 ) $ (4.5 ) Goodwill Impairment $ — $ 11.3 $ — Asset Impairments $ 3.0 $ 23.9 $ 3.8 Investing activities: Capital expenditures $ (14.9 ) $ (22.3 ) $ (21.9 ) Other Year Ended December 31, 2016 2015 2014 Gain (loss) on disposition of discontinued operations $ 4.5 $ 4.5 $ 66.1 (Provision for) benefit from income taxes (1.0 ) (1.1 ) (7.5 ) Gain (loss) on disposition of discontinued operations – net of tax $ 3.5 $ 3.4 $ 58.6 The following amounts related to discontinued operations were derived from historical financial information and have been segregated from continuing operations and reported as discontinued operations in the Consolidated Statement of Income (Loss) (in millions): Year ended December 31, 2016 2015 2014 MHPS MHPS MHPS Trucks Total Net sales $ 1,398.2 $ 1,521.4 $ 1,829.7 $ 89.9 $ 1,919.6 Cost of sales (1,090.3 ) (1,184.1 ) (1,427.8 ) (82.4 ) (1,510.2 ) Selling, general and administrative expenses (266.8 ) (271.1 ) (378.9 ) (5.4 ) (384.3 ) Goodwill and intangible asset impairments (3.1 ) (34.7 ) — — — Net interest (expense) (2.3 ) (1.4 ) (3.1 ) — (3.1 ) Other income (expense) (11.5 ) 0.8 (1.3 ) (0.4 ) (1.7 ) Income (loss) from discontinued operations before income taxes 24.2 30.9 18.6 1.7 20.3 (Provision for) benefit from income taxes (9.9 ) (13.5 ) (11.1 ) (0.3 ) (11.4 ) Income (loss) from discontinued operations – net of tax 14.3 17.4 7.5 1.4 8.9 Net loss (income) attributable to noncontrolling interest (0.9 ) (3.3 ) (2.0 ) — (2.0 ) Income (loss) from discontinued operations – net of tax attributable to Terex Corporation $ 13.4 $ 14.1 $ 5.5 $ 1.4 $ 6.9 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | For the year ended December 31, (in millions, except per share data) 2016 2015 2014 Income (loss) from continuing operations attributable to Terex Corporation common stockholders $ (193.0 ) $ 128.4 $ 253.5 Income (loss) from discontinued operations-net of tax 13.4 14.1 6.9 Gain (loss) on disposition of discontinued operations-net of tax 3.5 3.4 58.6 Net income (loss) attributable to Terex Corporation $ (176.1 ) $ 145.9 $ 319.0 Basic shares: Weighted average shares outstanding 107.9 107.4 109.7 Earnings (loss) per share - basic: Income (loss) from continuing operations $ (1.79 ) $ 1.20 $ 2.31 Income (loss) from discontinued operations-net of tax 0.13 0.13 0.06 Gain (loss) on disposition of discontinued operations-net of tax 0.03 0.03 0.54 Net income (loss) attributable to Terex Corporation $ (1.63 ) $ 1.36 $ 2.91 Diluted shares: Weighted average shares outstanding - basic 107.9 107.4 109.7 Effect of dilutive securities: Stock options, restricted stock awards and convertible notes — 2.2 4.5 Diluted weighted average shares outstanding 107.9 109.6 114.2 Earnings (loss) per share - diluted: Income (loss) from continuing operations $ (1.79 ) $ 1.17 $ 2.22 Income (loss) from discontinued operations-net of tax 0.13 0.13 0.06 Gain (loss) on disposition of discontinued operations-net of tax 0.03 0.03 0.51 Net income (loss) attributable to Terex Corporation $ (1.63 ) $ 1.33 $ 2.79 |
Schedule of noncontrolling interest attributable to common stockholders | The following table provides information to reconcile amounts reported on the Consolidated Statement of Income (Loss) to amounts used to calculate earnings per share attributable to Terex Corporation common stockholders (in millions) for the year ended December 31: Reconciliation of amounts attributable to common stockholders: 2016 2015 2014 Income (loss) from continuing operations $ (193.3 ) $ 128.2 $ 252.0 Net loss (income) from continuing operations attributable to noncontrolling interest 0.3 0.2 1.5 Income (loss) from continuing operations attributable to common stockholders $ (193.0 ) $ 128.4 $ 253.5 |
FINANCE RECEIVABLES (Tables)
FINANCE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Finance receivables, net consisted of the following (in millions): December 31, December 31, Commercial loans $ 226.4 $ 331.4 Sales-type leases 16.4 21.9 Total finance receivables, gross 242.8 353.3 Allowance for credit losses (6.3 ) (7.3 ) Total finance receivables, net $ 236.5 $ 346.0 |
Allowance for Credit Losses on Financing Receivables | The following table presents an analysis of the allowance for credit losses: Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 Commercial Loans Sales-Type Leases Total Commercial Loans Sales-Type Leases Total Commercial Loans Sales-Type Leases Total Balance, beginning of period $ 6.5 0.8 $ 7.3 $ 1.9 $ 1.1 $ 3.0 $ 1.9 $ 0.4 $ 2.3 Provision for credit losses 0.2 (0.2 ) — 4.6 (0.3 ) 4.3 — 0.7 0.7 Charge offs (0.8 ) (0.2 ) (1.0 ) — — — — — — Recoveries — — — — — — — — — Balance, end of period $ 5.9 $ 0.4 $ 6.3 $ 6.5 $ 0.8 $ 7.3 $ 1.9 $ 1.1 $ 3.0 The allowance for credit losses and finance receivables by portfolio, segregated by those amounts that are individually evaluated for impairment and those that are collectively evaluated for impairment, was as follows (in millions): December 31, 2016 December 31, 2015 Allowance for credit losses, ending balance: Commercial Loans Sales-Type Leases Total Commercial Loans Sales-Type Leases Total Individually evaluated for impairment $ 1.6 $ — $ 1.6 $ 1.9 $ 0.5 $ 2.4 Collectively evaluated for impairment 4.3 0.4 4.7 4.6 0.3 4.9 Total allowance for credit losses $ 5.9 $ 0.4 $ 6.3 $ 6.5 $ 0.8 $ 7.3 Finance receivables, ending balance: Individually evaluated for impairment $ 1.6 $ — $ 1.6 $ 1.9 $ 1.8 $ 3.7 Collectively evaluated for impairment 224.8 16.4 241.2 329.5 20.1 349.6 Total finance receivables $ 226.4 $ 16.4 $ 242.8 $ 331.4 $ 21.9 $ 353.3 |
Impaired Financing Receivables | The following table presents individually impaired finance receivables (in millions): December 31, 2016 December 31, 2015 Commercial Loans Sales-Type Leases Total Commercial Loans Sales-Type Leases Total Recorded investment $ 1.6 $ — $ 1.6 $ 1.9 $ 1.8 $ 3.7 Related allowance 1.6 — 1.6 1.9 0.5 2.4 Average recorded investment 1.7 0.9 2.6 1.0 2.5 3.5 |
Past Due Financing Receivables | The following table presents analysis of aging of recorded investment in finance receivables (in millions): December 31, 2016 Current 31-60 days past due 61-90 days past due Greater than 90 days past due Total past due Total Finance Receivables Commercial loans $ 224.2 $ 0.6 $ 0.2 $ 1.4 $ 2.2 $ 226.4 Sales-type leases 15.8 — 0.6 — 0.6 16.4 Total finance receivables $ 240.0 $ 0.6 $ 0.8 $ 1.4 $ 2.8 $ 242.8 December 31, 2015 Current 31-60 days past due 61-90 days past due Greater than 90 days past due Total past due Total Finance Receivables Commercial loans $ 329.6 $ 0.8 $ — $ 1.0 $ 1.8 $ 331.4 Sales-type leases 20.2 0.5 — 1.2 1.7 21.9 Total finance receivables $ 349.8 $ 1.3 $ — $ 2.2 $ 3.5 $ 353.3 |
Financing Receivable Credit Quality Indicators | Finance receivables by risk rating (in millions): Rating December 31, 2016 December 31, 2015 Superior $ 9.6 $ 21.5 Above Average 64.7 159.4 Average 111.3 117.9 Below Average 53.0 44.2 Sub Standard 4.2 10.3 Total $ 242.8 $ 353.3 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following (in millions): December 31, 2016 2015 Finished equipment $ 334.7 $ 429.1 Replacement parts 144.9 168.3 Work-in-process 175.4 190.4 Raw materials and supplies 198.8 275.8 Inventories $ 853.8 $ 1,063.6 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment – net consist of the following (in millions): December 31, 2016 2015 Property $ 36.4 $ 37.2 Plant 144.3 161.9 Equipment 456.1 545.2 Property, Plant and Equipment – Gross 636.8 744.3 Less: Accumulated depreciation (332.2 ) (372.4 ) Property, plant and equipment – net $ 304.6 $ 371.9 |
EQUIPMENT SUBJECT TO OPERATIN39
EQUIPMENT SUBJECT TO OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease, Net [Abstract] | |
Schedule of Future Minimum Lease Payments Receivable | Future minimum lease payments to be received under non-cancellable operating leases with lease terms in excess of one year are as follows (in millions): Years ending December 31, 2017 $ 9.3 2018 4.9 2019 3.5 2020 1.9 2021 1.1 Thereafter 0.7 $ 21.4 |
GOODWILL AND INTANGIBLE ASSET40
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Schedule of changes in goodwill by business segment | An analysis of changes in the Company’s goodwill by business segment is as follows (in millions): AWP (1) Cranes (1) MP Total Balance at December 31, 2014, gross $ 139.4 $ 198.8 $ 198.1 $ 536.3 Accumulated impairment (38.6 ) (4.2 ) (23.2 ) (66.0 ) Balance at December 31, 2014, net 100.8 194.6 174.9 470.3 Acquisitions — — 14.4 14.4 Foreign exchange effect and other (1.7 ) (15.7 ) (8.2 ) (25.6 ) Balance at December 31, 2015, gross 137.7 183.1 204.3 525.1 Accumulated impairment (38.6 ) (4.2 ) (23.2 ) (66.0 ) Balance at December 31, 2015, net 99.1 178.9 181.1 459.1 Acquisitions 1.6 — — 1.6 Foreign exchange effect and other (1.6 ) (3.8 ) (20.5 ) (25.9 ) Balance at December 31, 2016, gross 137.7 179.3 183.8 500.8 Accumulated impairment (38.6 ) (179.3 ) (23.2 ) (241.1 ) Balance at December 31, 2016, net (2) $ 99.1 $ — $ 160.6 $ 259.7 (1) Includes a $17.9 million reclassification of goodwill from Cranes to discontinued operations, and a $0.9 million reclassification of goodwill from Cranes to AWP as a result of segment realignments. See Note C - “Business Segment Information”. (2) During the second quarter of 2016 the Company wrote off $132.8 million of fully impaired goodwill associated with its former Construction segment. | ||
Schedule of intangible assets by class | Intangible assets, net were comprised of the following as of December 31, 2016 and 2015 (in millions): December 31, 2016 December 31, 2015 Weighted Average Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets: Technology 7 $ 17.0 $ (15.7 ) $ 1.3 $ 17.3 $ (15.7 ) $ 1.6 Customer Relationships 20 33.1 (25.2 ) 7.9 34.8 (24.9 ) 9.9 Land Use Rights 68 7.9 (0.9 ) 7.0 8.2 (0.9 ) 7.3 Other 6 25.8 (23.6 ) 2.2 28.0 (24.2 ) 3.8 Total definite-lived intangible assets $ 83.8 $ (65.4 ) $ 18.4 $ 88.3 $ (65.7 ) $ 22.6 | ||
Amortization of Intangible Assets | $ 2.9 | $ 3 | $ 11.5 |
Finite-lived Intangible Assets Amortization Expense | For the Year Ended December 31, (in millions) 2016 2015 2014 Aggregate Amortization Expense $ 2.9 $ 3.0 $ 11.5 | ||
Schedule of intangible assets amortization expense | Estimated aggregate intangible asset amortization expense (in millions) for the next five years is as follows: 2017 $ 2.1 2018 $ 1.9 2019 $ 1.8 2020 $ 1.8 2021 $ 1.7 |
DERIVATIVE FINANCIAL INSTRUME41
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments designated as hedging instruments that are reported in the Consolidated Balance Sheet | The following table provides the location and fair value amounts of derivative instruments designated as hedging instruments that are reported in the Consolidated Balance Sheet (in millions): Asset Derivatives Balance Sheet Account December 31, December 31, Foreign exchange contracts Other current assets $ 4.2 $ 4.0 Interest rate swap Other assets — 0.9 Total asset derivatives $ 4.2 $ 4.9 Liability Derivatives Foreign exchange contracts Other current liabilities (6.8 ) (0.8 ) Interest rate swap Other current liabilities — (0.7 ) Total liability derivatives $ (6.8 ) $ (1.5 ) Total Derivatives $ (2.6 ) $ 3.4 |
Schedule of fair value of derivative instruments not designated as hedging instruments that are reported in the Consolidated Balance Sheet | The following table provides the location and fair value amounts of derivative instruments not designated as hedging instruments that are reported in the Consolidated Balance Sheet (in millions): Asset Derivatives Balance Sheet Account December 31, December 31, Foreign exchange contracts Other current assets $ 2.6 $ 0.5 Debt conversion feature Other assets 1.1 1.1 Total asset derivatives $ 3.7 $ 1.6 Liability Derivatives Foreign exchange contracts Other current liabilities (1.2 ) (0.2 ) Total liability derivatives $ (1.2 ) $ (0.2 ) Total Derivatives $ 2.5 $ 1.4 |
Schedule of derivative instruments that are designated as hedges in the Consolidated Statement of Income and Accumulated other comprehensive income (loss) ("OCI") | The following tables provide the effect of derivative instruments that are designated as hedges in the Consolidated Statements of Income (Loss), Comprehensive Income (Loss) and AOCI (in millions): Gain (Loss) Recognized on Derivatives in AOCI: Year Ended Cash Flow Derivatives 2016 2015 2014 Foreign exchange contracts $ (4.5 ) $ 2.8 $ (3.4 ) Interest rate swap (0.2 ) 0.2 — Total $ (4.7 ) $ 3.0 $ (3.4 ) Gain (Loss) Reclassified from AOCI into Income (Loss) (Effective): Year Ended Account 2016 2015 2014 Cost of goods sold $ (2.0 ) $ 1.6 $ 2.5 Gain (Loss) Recognized on Derivatives (Ineffective) in Income (Loss): Year Ended Account 2016 2015 2014 Cost of goods sold $ 1.0 $ 2.3 $ (1.3 ) Other income (expense) – net $ — $ (0.1 ) $ 0.5 Total $ 1.0 $ 2.2 $ (0.8 ) |
Schedule of derivative instruments that are not designated as hedges in the Consolidated Statement of Income and OCI | The following table provides the effect of derivative instruments that are not designated as hedges in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (in millions): Gain (Loss) Recognized in Income on Derivatives not designated as hedges: Year Ended Account 2016 2015 2014 Other income (expense) – net 0.9 (3.4 ) 0.5 |
Schedule of accumulated other comprehensive income (loss) | Unrealized net gains (losses), net of tax, included in AOCI are as follows (in millions): Year Ended December 31, 2016 2015 2014 Balance at beginning of period $ 2.3 $ (0.7 ) $ 2.7 Additional gains (losses) – net (5.7 ) 9.2 (1.4 ) Amounts reclassified to earnings 1.0 (6.2 ) (2.0 ) Balance at end of period $ (2.4 ) $ 2.3 $ (0.7 ) |
RESTRUCTURING AND OTHER CHARG42
RESTRUCTURING AND OTHER CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Information for all restructuring activities by segment | The following table provides information for all restructuring activities by segment of the amount of expense incurred during the year ended December 31, 2016 , the cumulative amount of expenses incurred for the years ended December 31, 2016 , 2015 and 2014 and the total amount expected to be incurred (in millions): Amount incurred during the year ended December 31, 2016 Cumulative amount incurred through December 31, 2016 Total amount expected to be incurred AWP $ 0.9 $ 0.9 $ 0.9 Cranes 76.9 77.7 79.9 MP 0.4 1.4 1.4 Corporate and Other 2.9 2.9 2.9 Total $ 81.1 $ 82.9 $ 85.1 |
Information by type of restructuring activity | The following table provides information by type of restructuring activity with respect to the amount of expense incurred during the year ended December 31, 2016 , the cumulative amount of expenses incurred since inception of the programs and the total amount expected to be incurred (in millions): Employee Termination Costs Facility Exit Costs Asset Disposal and Other Costs Total Amount incurred in the year ended December 31, 2016 $ 61.7 $ 1.7 $ 17.7 $ 81.1 Cumulative amount incurred through December 31, 2016 $ 62.9 $ 1.8 $ 18.2 $ 82.9 Total amount expected to be incurred $ 64.4 $ 2.5 $ 18.2 $ 85.1 |
Roll forward of the restructuring reserve by type of restructuring activity | The following table provides a roll forward of the restructuring reserve by type of restructuring activity for the year ended December 31, 2016 (in millions): Employee Termination Costs Total Restructuring reserve at December 31, 2015 $ 0.9 $ 0.9 Restructuring charges 70.9 70.9 Restructuring reductions (1) (9.6 ) (9.6 ) Cash expenditures (4.7 ) (4.7 ) Foreign exchange (0.7 ) (0.7 ) Restructuring reserve at December 31, 2016 $ 56.8 $ 56.8 |
LONG-TERM OBLIGATIONS LONG TERM
LONG-TERM OBLIGATIONS LONG TERM OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt is summarized as follows (in millions): December 31, 2016 2015 6-1/2% Senior Notes due April 1, 2020, net of unamortized debt issuance costs of $2.1 and $2.8 respectively $ 297.9 $ 297.2 6% Senior Notes due May 15, 2021, net of unamortized debt issuance costs of $7.5 and $9.2, respectively 842.5 840.8 2014 Credit Agreement – term debt, net of unamortized debt issuance costs of $7.9 and $9.1, respectively 420.7 430.1 2015 Securitization Facility — 206.5 Capital lease obligations 2.9 4.9 Other 11.8 16.7 Total debt 1,575.8 1,796.2 Less: Notes payable and current portion of long-term debt (13.8 ) (66.4 ) Long-term debt, less current portion $ 1,562.0 $ 1,729.8 |
Schedule of Maturities of Long-term Debt | Amounts shown are exclusive of minimum lease payments for capital lease obligations (in millions): 2017 $ 13.6 2018 4.7 2019 4.4 2020 304.0 2021 1,262.6 Thereafter 1.1 Total Debt 1,590.4 Less: Unamortized debt issuance costs $ (17.5 ) Net debt $ 1,572.9 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Based on indicative price quotations from financial institutions multiplied by the amount recorded on the Company’s Consolidated Balance Sheet, excluding debt acquisition costs (“Book Value”), the Company estimates the fair values (“FV”) of its debt set forth below as of December 31, 2016 and 2015 , as follows (in millions, except for quotes): 2016 Book Value Quote FV 6-1/2% Senior Notes $ 300.0 $ 1.02500 $ 308 6% Senior Notes $ 850.0 $ 1.02750 $ 873 2014 Credit Agreement Term Loan (net of discount) – USD $ 223.5 $ 1.00000 $ 224 2014 Credit Agreement Term Loan (net of discount) – EUR $ 205.1 $ 0.99500 $ 204 2015 Book Value Quote FV 6-1/2% Senior Notes $ 300.0 $ 0.96000 $ 288 6% Senior Notes $ 850.0 $ 0.91500 $ 778 2014 Credit Agreement Term Loan (net of discount) – USD $ 225.5 $ 0.99000 $ 223 2014 Credit Agreement Term Loan (net of discount) – EUR $ 213.7 $ 0.99750 $ 213 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Lease Commitments [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital and Noncancellable Operating Leases | Future minimum noncancellable operating lease payments at December 31, 2016 are as follows (in millions): Operating Leases 2017 $ 32.5 2018 21.0 2019 16.4 2020 11.2 2021 10.5 Thereafter 40.7 Total minimum obligations $ 132.3 |
RETIREMENT PLANS AND OTHER BE45
RETIREMENT PLANS AND OTHER BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | Information regarding the Company’s plans, including SERP, was as follows (in millions, except percent values): U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits 2016 2015 2016 2015 2016 2015 Accumulated benefit obligation at end of year $ 161.2 $ 167.2 $ 209.7 $ 214.9 Change in benefit obligation: Benefit obligation at beginning of year $ 174.0 $ 184.9 $ 217.1 $ 243.0 $ 4.9 $ 5.7 Service cost 0.6 1.1 3.1 2.9 — — Interest cost 7.1 7.2 6.5 6.9 0.2 0.2 Transfer to Held for Sale — — (5.5 ) — — — Actuarial loss (gain) 2.5 (7.8 ) 25.9 (9.9 ) (0.6 ) (0.5 ) Benefits paid (16.6 ) (11.4 ) (9.4 ) (8.8 ) (0.3 ) (0.5 ) Foreign exchange effect — — (26.2 ) (17.0 ) — — Benefit obligation at end of year 167.6 174.0 211.5 217.1 4.2 4.9 Change in plan assets: Fair value of plan assets at beginning of year 123.1 136.8 111.2 119.0 — — Actual return on plan assets 9.5 (2.4 ) 18.4 (0.3 ) — — Employer contribution 1.1 0.1 6.7 7.2 0.3 0.5 Employee contribution — — 0.4 0.3 — — Benefits paid (16.6 ) (11.4 ) (9.4 ) (8.8 ) (0.3 ) (0.5 ) Foreign exchange effect — — (19.0 ) (6.2 ) — — Fair value of plan assets at end of year 117.1 123.1 108.3 111.2 — — Funded status $ (50.5 ) $ (50.9 ) $ (103.2 ) $ (105.9 ) $ (4.2 ) $ (4.9 ) Amounts recognized in the statement of financial position consist of: Current liabilities $ 1.2 $ 1.0 $ 2.4 $ 3.1 $ 0.5 $ 0.6 Non-current liabilities 49.3 49.9 100.8 102.8 3.7 4.3 Total liabilities $ 50.5 $ 50.9 $ 103.2 $ 105.9 $ 4.2 $ 4.9 Amounts recognized in accumulated other comprehensive loss consist of: Actuarial net loss $ 75.6 $ 78.5 $ 148.5 $ 126.5 $ — $ 0.6 Prior service cost 0.3 0.4 (2.2 ) 0.2 — — Total amounts recognized in accumulated other comprehensive loss $ 75.9 $ 78.9 $ 146.3 $ 126.7 $ — $ 0.6 |
Schedule of Assumptions Used | U.S. Pension Benefits Non-U.S.Pension Benefits Other Benefits 2016 2015 2014 2016 2015 2014 2016 2015 2014 Weighted-average assumptions as of December 31: Discount rate (1) 4.03 % 4.20 % 4.02 % 2.27 % 3.23 % 2.97 % 3.81 % 3.91 % 3.74 % Expected return on plan assets 7.00 % 7.50 % 7.50 % 5.90 % 5.93 % 5.96 % N/A N/A N/A Rate of compensation increase (1) 3.75 % 3.75 % 3.75 % 0.89 % 0.83 % 0.84 % N/A N/A N/A |
Schedule of Net Periodic Benefit Cost Not yet Recognized | U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits 2016 2015 2014 2016 2015 2014 2016 2015 2014 Components of net periodic cost: Service cost $ 0.6 $ 1.1 $ 0.9 $ 3.1 $ 2.9 $ 1.6 $ — $ — $ — Interest cost 7.1 7.2 7.2 6.5 6.9 8.9 0.2 0.2 0.2 Expected return on plan assets (8.3 ) (9.9 ) (9.2 ) (6.0 ) (7.0 ) (6.7 ) — — — Recognition of prior service cost 0.2 0.1 0.1 — — 2.0 — — — Amortization of actuarial loss 4.2 3.8 2.1 2.5 3.2 1.8 — 0.1 0.1 Other — — — (0.4 ) (0.3 ) — — — — Net periodic cost $ 3.8 $ 2.3 $ 1.1 $ 5.7 $ 5.7 $ 7.6 $ 0.2 $ 0.3 $ 0.3 |
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits 2016 2015 2016 2015 2016 2015 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): Net (gain) loss $ 1.3 $ 4.3 $ 39.7 $ (12.9 ) $ (0.6 ) $ (0.5 ) Amortization of actuarial losses (4.2 ) (3.7 ) (5.6 ) (7.5 ) — — Amortization of prior service cost (0.1 ) (0.1 ) (2.3 ) (0.1 ) — — Foreign exchange effect — — (12.2 ) (12.7 ) — — Total recognized in other comprehensive income (loss) $ (3.0 ) $ 0.5 $ 19.6 $ (33.2 ) $ (0.6 ) $ (0.5 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits Amounts expected to be recognized as components of net periodic cost for the year ending December 31, 2017: Actuarial net loss $ 4.1 $ 3.3 $ — Prior service cost 0.1 — — Total amount expected to be recognized as components of net periodic cost for the year ending December 31, 2017 $ 4.2 $ 3.3 $ — |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | For the Company’s plans, including the SERP, that have accumulated benefit obligations in excess of plan assets the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were (in millions): U.S. Pension Benefits Non-U.S. Pension Benefits 2016 2015 2016 2015 Projected benefit obligation $ 167.6 $ 174.0 $ 211.5 $ 217.1 Accumulated benefit obligation $ 161.2 $ 167.2 $ 209.7 $ 214.9 Fair value of plan assets $ 117.1 $ 123.1 $ 108.3 $ 111.2 |
Schedule of Fair Value of Plan Assets by Measurement Levels | The fair value of cash in the table below is based on price quotations in an active market and therefore categorized under Level 1 of the ASC 820 hierarchy. The fair value of the investment funds is priced on the market value of the underlying investments in the portfolio and therefore categorized as Level 2 of the ASC 820 hierarchy. See Note B – “Basis of Presentation,” for an explanation of the ASC 820 hierarchy. On January 1, 2016, the Company adopted ASU 2015-07, “Fair Value Measurement (Topic 820); Disclosures for Investments in Certain Entities That Calculate Net Asset Value Per Share (or Its Equivalent)” (“ASU 2015-07”). This ASU includes a practical expedient to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured at the net asset value per share. ASU 2015-07 requires retroactive application and resulted in a reclassification of plan assets of $119.5 million in 2015 from Level 2 to Net asset value (“NAV”). The fair value of the Company’s plan assets at December 31, 2016 are as follows (in millions): U.S. Pension Plan Non-U.S. Pension Plans Total Level 1 Level 2 NAV Total Level 1 Level 2 NAV Cash, including money market funds $ 2.5 $ 2.5 $ — $ — $ 2.1 $ 2.1 $ — $ — U.S. equities 28.6 — — 28.6 5.9 — 5.9 — Non-U.S. equities 8.7 — — 8.7 21.2 — 21.2 — U.S. corporate bonds 56.4 — — 56.4 0.9 — 0.9 — Non-U.S. corporate bonds — — — — 17.7 — 17.7 — U.S. government securities 12.7 — — 12.7 0.6 — 0.6 — Non-U.S. government securities 0.3 — — 0.3 29.3 — 29.3 — Real estate — — — — 2.8 — 2.8 — Other securities 7.9 — — 7.9 27.8 — 27.8 — Total investments measured at fair value $ 117.1 $ 2.5 $ — $ 114.6 $ 108.3 $ 2.1 $ 106.2 $ — The fair value of the Company’s plan assets at December 31, 2015 are as follows (in millions): U.S. Pension Plan Non-U.S. Pension Plans Total Level 1 Level 2 NAV Total Level 1 Level 2 NAV Cash, including money market funds $ 3.6 $ 3.6 $ — $ — $ 4.4 $ 4.4 $ — $ — U.S. equities 28.5 — — 28.5 6.3 — 6.3 — Non-U.S. equities 9.3 — — 9.3 21.7 — 21.7 — U.S. corporate bonds 58.7 — — 58.7 0.1 — 0.1 — Non-U.S. corporate bonds — — — — 20.3 — 20.3 — U.S. government securities 14.0 — — 14.0 — — — — Non-U.S. government securities 0.1 — — 0.1 29.8 — 29.8 — Real estate — — — — 3.4 — 3.4 — Other securities 8.9 — — 8.9 25.2 — 25.2 — Total investments measured at fair value $ 123.1 $ 3.6 $ — $ 119.5 $ 111.2 $ 4.4 $ 106.8 $ — |
Schedule of Expected Benefit Payments | The Company’s estimated future benefit payments under its plans are as follows (in millions): Year Ending December 31, U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits 2017 $ 11.6 $ 8.4 $ 0.5 2018 $ 11.4 $ 6.6 $ 0.4 2019 $ 11.3 $ 6.9 $ 0.4 2020 $ 11.4 $ 7.1 $ 0.4 2021 $ 11.2 $ 7.6 $ 0.3 2022-2026 $ 54.5 $ 41.5 $ 1.4 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects (in millions): 1-Percentage- Point Increase 1-Percentage- Point Decrease Effect on total service and interest cost components $ — $ — Effect on post-retirement benefit obligation $ 0.2 $ (0.2 ) |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table is a summary of stock options under all of the Company’s plans. Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2015 141,223 $ 47.50 Exercised — $ — Canceled or expired (128,164 ) $ 45.71 Outstanding at December 31, 2016 13,059 $ 65.17 0.60 $ — Exercisable at December 31, 2016 13,059 $ 65.17 0.60 $ — Vested at December 31, 2016 13,059 $ 65.17 0.60 $ — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table presents the weighted-average assumptions used in the valuations: Grant date Grant date Grant date Grant date March 3, 2016 March 5, 2015 March 5, 2015 February 26, 2014 Dividend yields 1.22% 0.91% 0.91% 0.46% Expected volatility 45.59% 45.48% 37.00% 56.84% Risk free interest rate 0.97% 0.98% 0.58% 0.63% Expected life (in years) 3 3 2 3 Grant date fair value per share $29.24 $28.10 $25.60 $53.17 |
Schedule of Share-based Compensation Restricted Stock Awards Activity | The following table is a summary of restricted stock awards under all of the Company’s plans: Restricted Stock Awards Weighted Average Grant Date Fair Value Nonvested at December 31, 2015 3,092,943 $ 30.29 Granted 2,015,229 $ 23.95 Vested (1,034,666 ) $ 33.94 Canceled, expired or other (542,318 ) $ 29.61 Nonvested at December 31, 2016 3,531,188 $ 25.42 |
Schedule of Accumulated Other Comprehensive Income (Loss) Attributable to Parent | Accumulated Other Comprehensive Income (Loss) Attributable to Terex Corporation Cumulative Translation Adjustment Derivative Hedging Adjustment Debt & Equity Securities Adjustment Pension Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2014 $ (7.9 ) $ 2.7 $ — $ (111.3 ) $ (116.5 ) Current year change (237.6 ) (3.4 ) 1.6 (73.9 ) (313.3 ) Balance at December 31, 2014 (245.5 ) (0.7 ) 1.6 (185.2 ) (429.8 ) Current year change (247.2 ) 3.0 (7.9 ) 32.3 (219.8 ) Balance at December 31, 2015 (492.7 ) 2.3 (6.3 ) (152.9 ) (649.6 ) Current year change (122.6 ) (4.7 ) 6.9 (9.4 ) (129.8 ) Balance at December 31, 2016 $ (615.3 ) $ (2.4 ) $ 0.6 $ (162.3 ) $ (779.4 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest | Cumulative Translation Adjustment Derivative Hedging Adjustment Debt & Equity Securities Adjustment Pension Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2014 $ 0.9 $ — $ — $ — $ 0.9 Current year change (0.1 ) — — — (0.1 ) Balance at December 31, 2014 0.8 — — — 0.8 Current year change (0.1 ) — — — (0.1 ) Balance at December 31, 2015 0.7 — — — 0.7 Current year change (0.4 ) — — — (0.4 ) Balance at December 31, 2016 $ 0.3 $ — $ — $ — $ 0.3 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The table below presents changes in AOCI by component for the year ended December 31, 2016 and 2015 . All amounts are net of tax (in millions). Year ended December 31, 2016 Year ended December 31, 2015 CTA Derivative Hedging Adj. Debt & Equity Adj. Pension Liability Adj. Total CTA Derivative Hedging Adj. Debt & Equity Adj. Pension Liability Adj. Total Beginning balance $ (492.0 ) $ 2.3 $ (6.3 ) $ (152.9 ) $ (648.9 ) $ (244.7 ) $ (0.7 ) $ 1.6 $ (185.2 ) $ (429.0 ) Other comprehensive income before reclassifications (121.1 ) (5.7 ) 3.9 (16.1 ) (139.0 ) (247.3 ) 9.2 (7.9 ) 22.7 (223.3 ) Amounts reclassified from AOCI (1.9 ) 1.0 3.0 6.7 8.8 — (6.2 ) — 9.6 3.4 Net Other Comprehensive Income (Loss) (123.0 ) (4.7 ) 6.9 (9.4 ) (130.2 ) (247.3 ) 3.0 (7.9 ) 32.3 (219.9 ) Ending balance $ (615.0 ) $ (2.4 ) $ 0.6 $ (162.3 ) $ (779.1 ) $ (492.0 ) $ 2.3 $ (6.3 ) $ (152.9 ) $ (648.9 ) Cumulative Translation Adjustment Derivative Hedging Adjustment Debt & Equity Securities Adjustment Pension Adjustment Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2014 $ (7.0 ) $ 2.7 $ — $ (111.3 ) $ (115.6 ) Current year change (237.7 ) (3.4 ) 1.6 (73.9 ) (313.4 ) Balance at December 31, 2014 (244.7 ) (0.7 ) 1.6 (185.2 ) (429.0 ) Current year change (247.3 ) 3.0 (7.9 ) 32.3 (219.9 ) Balance at December 31, 2015 (492.0 ) 2.3 (6.3 ) (152.9 ) (648.9 ) Current year change (123.0 ) (4.7 ) 6.9 (9.4 ) (130.2 ) Balance at December 31, 2016 $ (615.0 ) $ (2.4 ) $ 0.6 $ (162.3 ) $ (779.1 ) |
CONSOLIDATING FINANCIAL STATE47
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Income Statement | TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) YEAR ENDED DECEMBER 31, 2016 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net sales $ 5.9 $ 2,473.6 $ 2,741.2 $ (777.6 ) $ 4,443.1 Cost of goods sold (5.1 ) (2,160.4 ) (2,324.7 ) 759.5 (3,730.7 ) Gross profit 0.8 313.2 416.5 (18.1 ) 712.4 Selling, general and administrative expenses (72.0 ) (240.4 ) (389.9 ) 18.1 (684.2 ) Goodwill and intangible asset impairment — (43.4 ) (132.6 ) — (176.0 ) Income (loss) from operations (71.2 ) 29.4 (106.0 ) — (147.8 ) Interest income 96.9 68.7 1.9 (163.2 ) 4.3 Interest expense (149.2 ) (8.4 ) (107.6 ) 163.2 (102.0 ) Income (loss) from subsidiaries 43.5 8.2 (4.1 ) (47.6 ) — Other income (expense) – net (56.9 ) 49.5 (17.8 ) — (25.2 ) Income (loss) from continuing operations before income taxes (136.9 ) 147.4 (233.6 ) (47.6 ) (270.7 ) (Provision for) benefit from income taxes (56.4 ) 43.5 90.3 — 77.4 Income (loss) from continuing operations (193.3 ) 190.9 (143.3 ) (47.6 ) (193.3 ) Income from discontinued operations – net of tax 14.3 6.4 13.9 (20.3 ) 14.3 Gain (loss) on disposition of discontinued operations – net of tax 0.5 — 3.0 — 3.5 Net income (loss) (178.5 ) 197.3 (126.4 ) (67.9 ) (175.5 ) Net loss (income) from continuing operations attributable to noncontrolling interest — — 0.3 — 0.3 Net loss (income) from discontinued operations attributable to noncontrolling interest — — (0.9 ) — (0.9 ) Net income (loss) attributable to Terex Corporation $ (178.5 ) $ 197.3 $ (127.0 ) $ (67.9 ) $ (176.1 ) Comprehensive income (loss), net of tax $ (305.9 ) $ 195.8 $ (112.9 ) $ (82.7 ) $ (305.7 ) Comprehensive loss (income) attributable to noncontrolling interest — — (0.2 ) — (0.2 ) Comprehensive income (loss) attributable to Terex Corporation $ (305.9 ) $ 195.8 $ (113.1 ) $ (82.7 ) $ (305.9 ) TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) YEAR ENDED DECEMBER 31, 2015 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net sales $ 10.0 $ 3,008.0 $ 2,928.0 $ (924.3 ) $ 5,021.7 Cost of goods sold (8.0 ) (2,503.5 ) (2,463.3 ) 924.3 (4,050.5 ) Gross profit 2.0 504.5 464.7 — 971.2 Selling, general and administrative expenses (26.8 ) (260.5 ) (360.2 ) — (647.5 ) Income (loss) from operations (24.8 ) 244.0 104.5 — 323.7 Interest income 103.6 68.7 1.9 (170.4 ) 3.8 Interest expense (155.2 ) (6.5 ) (116.8 ) 170.4 (108.1 ) Income (loss) from subsidiaries 239.3 8.6 (3.0 ) (244.9 ) — Other income (expense) – net (67.7 ) 41.1 2.9 — (23.7 ) Income (loss) from continuing operations before income taxes 95.2 355.9 (10.5 ) (244.9 ) 195.7 (Provision for) benefit from income taxes 33.0 (79.5 ) (21.0 ) — (67.5 ) Income (loss) from continuing operations 128.2 276.4 (31.5 ) (244.9 ) 128.2 Income (loss) from discontinued operations – net of tax 17.5 2.4 18.6 (21.1 ) 17.4 Gain (loss) on disposition of discontinued operations – net of tax 0.7 — 2.7 — 3.4 Net income (loss) 146.4 278.8 (10.2 ) (266.0 ) 149.0 Net loss (income) from continuing operations attributable to noncontrolling interest — — 0.2 — 0.2 Net loss (income) from discontinued operations attributable to noncontrolling interest — — (3.3 ) — (3.3 ) Net income (loss) attributable to Terex Corporation $ 146.4 $ 278.8 $ (13.3 ) $ (266.0 ) $ 145.9 Comprehensive income (loss), net of tax (73.9 ) 277.1 (166.3 ) (107.8 ) (70.9 ) Comprehensive loss (income) attributable to noncontrolling interest — — (3.0 ) — (3.0 ) Comprehensive income (loss) attributable to Terex Corporation $ (73.9 ) $ 277.1 $ (169.3 ) $ (107.8 ) $ (73.9 ) TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) YEAR ENDED DECEMBER 31, 2014 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net sales $ 42.5 $ 3,257.0 $ 3,210.2 $ (1,025.7 ) $ 5,484.0 Cost of goods sold (39.2 ) (2,679.8 ) (2,739.2 ) 1,025.7 (4,432.5 ) Gross profit 3.3 577.2 471.0 — 1,051.5 Selling, general and administrative expenses (29.4 ) (237.4 ) (384.7 ) — (651.5 ) Income (loss) from operations (26.1 ) 339.8 86.3 — 400.0 Interest income 129.7 73.8 3.9 (201.4 ) 6.0 Interest expense (170.5 ) (16.6 ) (137.0 ) 201.4 (122.7 ) Income (loss) from subsidiaries 348.8 9.4 (2.9 ) (355.3 ) — Other income (expense) – net (36.1 ) 4.7 26.7 — (4.7 ) Income (loss) from continuing operations before income taxes 245.8 411.1 (23.0 ) (355.3 ) 278.6 (Provision for) benefit from income taxes 6.2 (24.3 ) (8.5 ) — (26.6 ) Income (loss) from continuing operations 252.0 386.8 (31.5 ) (355.3 ) 252.0 Income (loss) from discontinued operations – net of tax 8.9 5.4 8.0 (13.4 ) 8.9 Gain (loss) on disposition of discontinued operations – net of tax 7.3 — 50.7 0.6 58.6 Net income (loss) 268.2 392.2 27.2 (368.1 ) 319.5 Net loss (income) from continuing operations attributable to noncontrolling interest — — 1.5 — 1.5 Net loss (income) from discontinued operations attributable to noncontrolling interest — — (2.0 ) — (2.0 ) Net income (loss) attributable to Terex Corporation $ 268.2 $ 392.2 $ 26.7 $ (368.1 ) $ 319.0 Comprehensive income (loss), net of tax $ 5.7 $ 388.8 $ (223.1 ) $ (165.3 ) $ 6.1 Comprehensive loss (income) attributable to noncontrolling interest — — (0.4 ) — (0.4 ) Comprehensive income (loss) attributable to Terex Corporation $ 5.7 $ 388.8 $ (223.5 ) $ (165.3 ) $ 5.7 |
Condensed consolidating balance sheet | TEREX CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2016 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 50.7 $ 0.4 $ 377.4 $ — $ 428.5 Trade receivables – net 5.2 167.0 340.3 — 512.5 Intercompany receivables 28.7 37.8 88.8 (155.3 ) — Inventories 0.5 310.6 542.7 — 853.8 Prepaid and other current assets 55.3 71.1 46.4 — 172.8 Current assets held for sale — 15.1 717.8 — 732.9 Total current assets 140.4 602.0 2,113.4 (155.3 ) 2,700.5 Property, plant and equipment – net 32.7 148.4 123.5 — 304.6 Goodwill — 120.7 139.0 — 259.7 Non-current intercompany receivables 1,257.8 2,917.2 13.1 (4,188.1 ) — Investment in and advances to (from) subsidiaries 4,120.8 90.9 94.1 (4,278.6 ) 27.2 Other assets 109.8 175.8 257.9 — 543.5 Non-current assets held for sale 0.1 119.7 1,051.5 — 1,171.3 Total assets $ 5,661.6 $ 4,174.7 $ 3,792.5 $ (8,622.0 ) $ 5,006.8 Liabilities and Stockholders’ Equity Current liabilities Notes payable and current portion of long-term debt $ — $ 0.2 $ 13.6 $ — $ 13.8 Trade accounts payable 40.3 197.6 284.8 — 522.7 Intercompany payables 4.0 42.3 109.0 (155.3 ) — Accruals and other current liabilities 62.3 113.3 241.1 — 416.7 Current liabilities held for sale — 13.3 440.5 — 453.8 Total current liabilities 106.6 366.7 1,089.0 (155.3 ) 1,407.0 Long-term debt, less current portion 1,140.4 — 421.6 — 1,562.0 Non-current intercompany payables 2,884.3 — 1,303.8 (4,188.1 ) — Other non-current liabilities 45.6 34.8 124.1 — 204.5 Non-current liabilities held for sale — — 312.1 — 312.1 Total stockholders’ equity 1,484.7 3,773.2 541.9 (4,278.6 ) 1,521.2 Total liabilities, noncontrolling interest and stockholders’ equity $ 5,661.6 $ 4,174.7 $ 3,792.5 $ (8,622.0 ) $ 5,006.8 TEREX CORPORATION CONDENSED CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 91.7 $ 0.2 $ 279.3 $ — $ 371.2 Trade receivables – net 5.2 241.7 456.4 — 703.3 Intercompany receivables 57.5 55.3 64.7 (177.5 ) — Inventories — 424.2 639.4 — 1,063.6 Prepaid and other current assets 108.6 33.9 110.0 — 252.5 Current assets held for sale — 17.1 732.5 — 749.6 Total current assets 263.0 772.4 2,282.3 (177.5 ) 3,140.2 Property, plant and equipment – net 57.9 145.9 168.1 — 371.9 Goodwill — 162.2 296.9 — 459.1 Non-current intercompany receivables 1,353.8 2,786.4 72.9 (4,213.1 ) — Investment in and advances to (from) subsidiaries 4,010.2 94.4 95.2 (4,154.5 ) 45.3 Other assets 29.2 104.3 305.5 — 439.0 Non-current assets held for sale — 29.5 1,131.0 — 1,160.5 Total assets $ 5,714.1 $ 4,095.1 $ 4,351.9 $ (8,545.1 ) $ 5,616.0 Liabilities and Stockholders’ Equity Current liabilities Notes payable and current portion of long-term debt $ — $ 0.7 $ 65.7 $ — $ 66.4 Trade accounts payable 21.4 222.8 316.5 — 560.7 Intercompany payables 3.1 56.6 117.8 (177.5 ) — Accruals and other current liabilities 59.8 113.5 212.2 — 385.5 Current liabilities held for sale — 17.6 428.4 — 446.0 Total current liabilities 84.3 411.2 1,140.6 (177.5 ) 1,458.6 Long-term debt, less current portion 1,138.1 1.2 590.5 — 1,729.8 Non-current intercompany payables 2,562.3 — 1,650.8 (4,213.1 ) — Other non-current liabilities 52.0 35.3 129.8 — 217.1 Non-current liabilities held for sale — — 298.5 — 298.5 Total stockholders’ equity 1,877.4 3,647.4 541.7 (4,154.5 ) 1,912.0 Total liabilities, noncontrolling interest and stockholders’ equity $ 5,714.1 $ 4,095.1 $ 4,351.9 $ (8,545.1 ) $ 5,616.0 |
Condensed consolidating statement of cash flows | TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net cash provided by (used in) operating activities $ (253.0 ) $ 420.7 $ 193.6 $ 5.7 $ 367.0 Cash flows from investing activities Capital expenditures (2.4 ) (32.0 ) (38.6 ) — (73.0 ) Acquisitions, net of cash acquired — — (7.0 ) — (7.0 ) Proceeds (payments) from disposition of discontinued operations — — 3.5 — 3.5 Proceeds from sale of assets 0.1 5.4 61.7 — 67.2 Intercompany investing activities (1) 327.0 (97.5 ) (23.4 ) (206.1 ) — Other investing activities, net — — 26.6 (29.1 ) (2.5 ) Net cash provided by (used in) investing activities 324.7 (124.1 ) 22.8 (235.2 ) (11.8 ) Cash flows from financing activities Repayments of debt (1,013.2 ) (1.7 ) (271.4 ) — (1,286.3 ) Proceeds from issuance of debt 1,013.4 — 84.3 — 1,097.7 Proceeds from (purchase of) noncontrolling interest, net — — 2.9 — 2.9 Intercompany financing activities (1) — (297.1 ) 67.6 229.5 — Share repurchases (82.7 ) — — — (82.7 ) Dividends paid (30.0 ) — — — (30.0 ) Other financing activities, net — — (1.7 ) — (1.7 ) Net cash provided by (used in) financing activities (112.5 ) (298.8 ) (118.3 ) 229.5 (300.1 ) Effect of exchange rate changes on cash and cash equivalents — — (19.7 ) — (19.7 ) Net increase (decrease) in cash and cash equivalents (40.8 ) (2.2 ) 78.4 — 35.4 Cash and cash equivalents, beginning of period 91.6 3.1 371.8 — 466.5 Cash and cash equivalents, end of period $ 50.8 $ 0.9 $ 450.2 $ — $ 501.9 (1) Intercompany investing and financing activities include cash pooling activity between Terex Corporation and Wholly-Owned Guarantors. TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2015 (in millions) Terex Corporation Wholly-owned Guarantors Non-guarantor Subsidiaries Intercompany Eliminations Consolidated Net cash provided by (used in) operating activities $ (510.0 ) $ 647.6 $ 277.4 $ (202.1 ) $ 212.9 Cash flows from investing activities Capital expenditures (1.6 ) (41.9 ) (60.3 ) — (103.8 ) Acquisitions, net of cash acquired — (52.1 ) (19.1 ) — (71.2 ) Proceeds from disposition of discontinued operations (3.4 ) — 3.2 — (0.2 ) Proceeds from sale of assets (1.0 ) 0.9 3.2 — 3.1 Intercompany investing activities (1) 713.3 — (231.6 ) (481.7 ) — Other investing activities, net — — 33.9 (34.5 ) (0.6 ) Net cash provided by (used in) investing activities 707.3 (93.1 ) (270.7 ) (516.2 ) (172.7 ) Cash flows from financing activities Repayments of debt (1,317.4 ) (7.8 ) (72.6 ) — (1,397.8 ) Proceeds from issuance of debt 1,188.7 — 274.1 — 1,462.8 Proceeds from (purchase of) noncontrolling interest, net — — (1.2 ) — (1.2 ) Intercompany financing activities (1) — (545.5 ) (172.8 ) 718.3 — Share repurchases (50.8 ) — — — (50.8 ) Dividends paid (25.8 ) — — — (25.8 ) Other financing activities, net 0.6 — (2.2 ) — (1.6 ) Net cash provided by (used in) financing activities (204.7 ) (553.3 ) 25.3 718.3 (14.4 ) Effect of exchange rate changes on cash and cash equivalents — — (37.5 ) — (37.5 ) Net increase (decrease) in cash and cash equivalents (7.4 ) 1.2 (5.5 ) — (11.7 ) Cash and cash equivalents, beginning of period 99.0 1.9 377.3 — 478.2 Cash and cash equivalents, end of period $ 91.6 $ 3.1 $ 371.8 $ — $ 466.5 (1) Intercompany investing and financing activities include cash pooling activity between Terex Corporation and Wholly-Owned Guarantors. TEREX CORPORATION CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2014 (in millions) Terex Corporation Wholly- owned Guarantors Non- guarantor Subsidiaries Intercompany Eliminations Consolidated Net cash provided by (used in) operating activities $ (113.4 ) $ 901.9 $ 35.2 $ (413.0 ) $ 410.7 Cash flows from investing activities Capital expenditures (4.4 ) (31.8 ) (45.3 ) — (81.5 ) Acquisitions, net of cash acquired — — (7.4 ) — (7.4 ) Other investments (20.0 ) — — — (20.0 ) Proceeds (payments) from disposition of discontinued operations 31.3 — 130.9 — 162.2 Proceeds from sale of assets 25.0 12.1 6.2 — 43.3 Intercompany investing activities (1) 363.5 — — (363.5 ) — Other investing activities, net — — (1.6 ) — (1.6 ) Net cash provided by (used in) investing activities 395.4 (19.7 ) 82.8 (363.5 ) 95.0 Cash flows from financing activities Repayments of debt (1,018.8 ) (3.2 ) (779.8 ) — (1,801.8 ) Proceeds from issuance of debt 1,011.0 7.2 666.0 — 1,684.2 Purchase of noncontrolling interest — — (78.6 ) — (78.6 ) Intercompany financing activities (1) — (888.2 ) 111.7 776.5 — Share repurchases (171.2 ) — — — (171.2 ) Dividends paid (21.8 ) — — — (21.8 ) Other financing activities, net 1.5 — (9.0 ) — (7.5 ) Net cash provided by (used in) financing activities (199.3 ) (884.2 ) (89.7 ) 776.5 (396.7 ) Effect of exchange rate changes on cash and cash equivalents — — (38.9 ) — (38.9 ) Net increase (decrease) in cash and cash equivalents 82.7 (2.0 ) (10.6 ) — 70.1 Cash and cash equivalents, beginning of period 16.3 3.9 387.9 — 408.1 Cash and cash equivalents, end of period $ 99.0 $ 1.9 $ 377.3 $ — $ 478.2 |
SALE OF MHPS BUSINESS (Details)
SALE OF MHPS BUSINESS (Details) - USD ($) shares in Millions, $ in Millions | Feb. 15, 2017 | Jan. 04, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business acquisition | ||||
Disposal Group, Including Discontinued Operations, Transaction Costs | $ 14.2 | |||
Merger | ||||
Business acquisition | ||||
Business Combination, Acquisition Related Costs | $ 14 | $ 13.8 | ||
Subsequent Event | Materials Handling and Port Solutions Sale | ||||
Business acquisition | ||||
Disposal Group, Including Discontinued Operation, Consideration, Equity Interest Received Or Receivable, Shares | 19.6 | |||
Proceeds from Divestiture of Businesses | $ 832 | |||
Subsequent Event | Konescranes Class B Common Stock [Member] | ||||
Business acquisition | ||||
Sale of Investment During Period, Number of Shares Sold | 7.5 | |||
Proceeds from Sale of Available-for-sale Securities, Equity | $ 268 | |||
Company's ownership percentage | 15.50% |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Millions | May 30, 2014USD ($) | Dec. 31, 2016USD ($)days$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares |
Cash and Cash Equivalents | ||||
Cash and cash equivalents, not immediately available for use | $ 6 | $ 18 | ||
Inventories | ||||
Percentage of Weighted Average Cost Inventory | 30.00% | |||
Percentage of FIFO Inventory | 70.00% | |||
Inventory reserves | $ 83.3 | 76.8 | ||
Debt Issuance Costs | ||||
Debt Issuance Costs | 17.5 | |||
Debt and Credit Agreement issuance costs | 21.2 | 26.3 | ||
Accumulated Amortization of Debt Issuance Costs | 28.9 | 23.5 | ||
Goodwill | ||||
Goodwill, Impairment Loss | 0 | $ 0 | ||
Goodwill Impairment | 176 | 11.3 | 0 | |
Cost-method Investments, Other than Temporary Impairment | 20.5 | |||
Impairment of Long-Lived Assets | ||||
Fixed asset impairment | $ 41.2 | 1.4 | ||
Accounts Receivable and Allowance for Doubtful Accounts | ||||
Accounts receivable collectibility, number of days past due used to determine review (in days) | days | 90 | |||
Trade receivables sold | $ 620.4 | 54.1 | ||
Trade Receivables Held-for-sale, Amount | 64.3 | |||
Changes in consolidated current and non-current product warranty liability | ||||
Beginning Balance | 53 | 57.2 | ||
Accruals for warranties issued during the period | 72.4 | 63.2 | ||
Changes in estimates | (2.3) | (1.3) | ||
Settlements during the year | (58.1) | (64) | ||
Foreign exchange effect/other | (5.2) | (2.1) | ||
Ending Balance | $ 59.8 | $ 53 | $ 57.2 | |
Deferred Compensation | ||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Research and Development Costs | ||||
Research and Development Costs | $ 86.2 | $ 89.7 | $ 102.3 | |
Construction | ||||
Proceeds from Divestiture of Businesses | $ 160 | |||
Cranes | ||||
Goodwill | ||||
Goodwill, Impairment Loss | (176) | |||
Impairment of Long-Lived Assets | ||||
Fixed asset impairment | $ 17.4 | |||
Minimum | ||||
Intangible Assets | ||||
Intangible Assets, Useful Life (in years) | 1 year | |||
Minimum | Plant | ||||
Property, Plant and Equipment | ||||
Property, Plant and Equipment, Useful Life (in years) | 1 year | |||
Minimum | Equipment | ||||
Property, Plant and Equipment | ||||
Property, Plant and Equipment, Useful Life (in years) | 2 years | |||
Maximum | ||||
Intangible Assets | ||||
Intangible Assets, Useful Life (in years) | 57 years | |||
Maximum | Plant | ||||
Property, Plant and Equipment | ||||
Property, Plant and Equipment, Useful Life (in years) | 40 years | |||
Maximum | Equipment | ||||
Property, Plant and Equipment | ||||
Property, Plant and Equipment, Useful Life (in years) | 20 years | |||
Other Assets | Accounting Standards Update 2015-03 [Member] | ||||
Debt Issuance Costs | ||||
Debt Issuance Costs | (21.1) | |||
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | ||||
Debt Issuance Costs | ||||
Debt Issuance Costs | 21.1 | |||
Prepaid Expenses and Other Current Assets [Member] | ||||
Prepaid Expense, Current | 49.6 | |||
Other Current Liabilities | ||||
Research and Development Costs | ||||
Deferred Tax Liabilities, Other | 8.5 | |||
Corporate, Non-Segment [Domain] | ||||
Impairment of Long-Lived Assets | ||||
Fixed asset impairment | $ 16.6 | |||
Materials Handling and Port Solutions Sale | ||||
Goodwill | ||||
Goodwill Impairment | $ (11) |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Millions | May 30, 2014USD ($) | Dec. 31, 2016USD ($)segments | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information | |||||
Number of reportable segments | segments | 3 | ||||
Number of customers accounting for more than 10% of consolidated sales | 0 | ||||
Net sales | $ 4,443.1 | $ 5,021.7 | $ 5,484 | ||
Income (loss) from operations | (147.8) | 323.7 | 400 | ||
Depreciation and Amortization | 74.3 | 76.6 | 99.1 | ||
Capital Expenditures | 58.1 | 81.5 | 58.3 | ||
Identifiable Assets | 5,006.8 | 5,616 | |||
Long-lived Assets | 304.6 | 371.9 | |||
United States | |||||
Segment Reporting Information | |||||
Net sales | 2,131.4 | 2,420.1 | 2,552.7 | ||
Long-lived Assets | 181.1 | 203.8 | |||
United Kingdom | |||||
Segment Reporting Information | |||||
Net sales | 333.2 | 402.3 | 346.2 | ||
Long-lived Assets | 34.9 | 41.2 | |||
Germany | |||||
Segment Reporting Information | |||||
Net sales | 237.1 | 243.7 | 310.6 | ||
Long-lived Assets | 32.4 | 64 | |||
Other European Countries | |||||
Segment Reporting Information | |||||
Net sales | 726.7 | 714.3 | 848.3 | ||
Long-lived Assets | 14.8 | 17.5 | |||
All other | |||||
Segment Reporting Information | |||||
Net sales | 1,014.7 | 1,241.3 | 1,426.2 | ||
Long-lived Assets | 41.4 | 45.4 | |||
Aerial Work Platforms | |||||
Segment Reporting Information | |||||
Net sales | 1,977.8 | 2,246 | 2,403 | ||
Income (loss) from operations | 177.4 | 270.2 | 304.9 | ||
Depreciation and Amortization | 19.9 | 15.3 | 12.1 | ||
Capital Expenditures | 17.1 | 38 | 28.6 | ||
Identifiable Assets | [1] | 1,659.8 | 1,701.2 | ||
Cranes | |||||
Segment Reporting Information | |||||
Net sales | 1,274.5 | 1,566.5 | 1,656.9 | ||
Income (loss) from operations | (321.7) | 56.3 | 83.8 | ||
Depreciation and Amortization | 21.5 | 21 | 28.3 | ||
Capital Expenditures | 13.2 | 13.8 | 14 | ||
Identifiable Assets | 1,618 | 1,822.3 | |||
Materials Processing | |||||
Segment Reporting Information | |||||
Net sales | 944.5 | 940.1 | 938.9 | ||
Income (loss) from operations | 86.3 | 68.6 | 65.6 | ||
Depreciation and Amortization | 6.9 | 6.9 | 7.7 | ||
Capital Expenditures | 7.5 | 20.7 | 5.8 | ||
Identifiable Assets | 1,104.9 | 1,073.4 | |||
Construction | |||||
Segment Reporting Information | |||||
Proceeds from Divestiture of Businesses | $ 160 | ||||
Corporate and Other / Eliminations | |||||
Segment Reporting Information | |||||
Net sales | 246.3 | 269.1 | 485.2 | ||
Income (loss) from operations | (89.8) | (71.4) | (54.3) | ||
Depreciation and Amortization | 26 | 33.4 | 51 | ||
Capital Expenditures | 20.3 | 9 | $ 9.9 | ||
Identifiable Assets | [1] | (1,280.1) | (891) | ||
Discontinued Operations | |||||
Segment Reporting Information | |||||
Identifiable Assets | $ 1,904.2 | $ 1,910.1 | |||
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INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Income Taxes | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 21 | ||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
United States | (29.9) | $ 212.2 | $ 304.3 |
Foreign | (240.8) | (16.5) | (25.7) |
Income (loss) from continuing operations before income taxes | (270.7) | 195.7 | 278.6 |
Income (Loss) before Income Taxes from Continuing and Discontinued Operations | (242) | 231.1 | 365 |
Current: | |||
Federal | 31.5 | 49.2 | 1.6 |
State | 6.2 | 3.1 | 7.6 |
Foreign | 38.2 | 15.6 | 30.6 |
Current income tax provision (benefit) | 75.9 | 67.9 | 39.8 |
Deferred: | |||
Federal | (27) | (3.7) | 9.9 |
State | (1.4) | 0 | (0.7) |
Foreign | (124.9) | 3.3 | (22.4) |
Deferred income tax (benefit) provision | (153.3) | (0.4) | (13.2) |
Total provision for (benefit from) income taxes | (77.4) | 67.5 | 26.6 |
Total (benefit from) provision for income taxes including discontinued operations | (66.5) | 82.1 | $ 45.5 |
Deferred tax assets and liabilities | |||
Valuation allowance for deferred tax assets, increase in period | (66.5) | (28.9) | |
Continuing Operations | |||
Deferred tax assets and liabilities | |||
Property, plant and equipment | (16.8) | (36.4) | |
Intangibles | (7.3) | (27.6) | |
Inventories | 18.1 | 21.5 | |
Accrued warranties and product liability | 15.1 | 13.6 | |
Loss carry forwards | 214.3 | 215.8 | |
Retirement plans | 32.5 | 32.2 | |
Accrued compensation and benefits | 40.1 | 38.4 | |
Investments | 2.3 | 1 | |
Currency translation adjustments | (0.6) | (0.3) | |
Credits | 11.9 | 1.7 | |
Other | 20.8 | 31.3 | |
Deferred tax assets valuation allowance | (148.6) | (215.1) | |
Net deferred tax assets | 181.8 | 76.1 | |
Deferred tax assets before valuation allowances | 331.3 | ||
Deferred tax liabilities | 0.9 | ||
Discontinued Operations | |||
Disclosure Income Taxes | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 2 | ||
Deferred tax assets and liabilities | |||
Net deferred tax assets | 19.7 | 2.9 | |
Deferred tax liabilities | $ 3.7 | $ 17.1 |
INCOME TAXES INCOME TAXES (Deta
INCOME TAXES INCOME TAXES (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
(Benefit from) provision for income taxes from continuing operations | ||||
Tax at statutory federal income tax rate | $ (94.7) | $ 68.5 | $ 97.5 | |
State taxes (net of Federal benefit) | 3.1 | 2 | 4.5 | |
Change in valuation allowance | (47.7) | (22.3) | 39.5 | |
Foreign tax differential on income/losses of foreign subsidiaries | (37.5) | 12.2 | (27) | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 41.9 | 3.7 | 5.6 | |
Change in foreign statutory rates | 1.9 | 7.7 | 2.5 | |
U.S. manufacturing and export incentives | (2) | (4.3) | (6.2) | |
Tax effect of dispositions | 2.1 | 0 | (86.8) | |
Impairment loss on intangibles | 52.4 | 0 | 0 | |
Other | 3.1 | 0 | (3) | |
Total provision for (benefit from) income taxes | (77.4) | 67.5 | 26.6 | |
Foreign Earnings Repatriated | 1,000 | |||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 251 | |||
Deferred Tax Assets, Capital Loss Carryforwards | 72.4 | |||
Operating Loss Carryforwards | 529 | |||
Income Taxes Paid, Net | 52.8 | 67.6 | 124.1 | |
Income Taxes Receivable, Current | 22.6 | 42.7 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at the Beginning of the Period | $ 59.8 | 69.4 | 78.1 | 88.4 |
Additions for current year tax positions | 0 | 0 | 1.9 | |
Additions for prior year tax positions | 6.3 | 1.7 | 1.2 | |
Reductions for prior year tax positions | (3.1) | (9.3) | (10.9) | |
Reductions for tax positions related to current year | 0 | 0 | 0 | |
Reductions related to expirations of statute of limitations | (5) | (1.1) | (2.4) | |
Settlements | (7.8) | 0 | (0.1) | |
Acquired balances | 0 | 0 | 0 | |
Balance at the End of the Period | 59.8 | 69.4 | 78.1 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 21 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 26.5 | |||
Income Tax Examination, Penalties and Interest Accrued | 12.9 | 13.9 | ||
Income Tax Examination, Penalties and Interest Expense | (1) | 1 | ||
United Kingdom | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Operating Loss Carryforwards | 66 | |||
Italy | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Operating Loss Carryforwards | 130 | |||
China | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Operating Loss Carryforwards | 47 | |||
Germany | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Operating Loss Carryforwards | 150 | |||
Switzerland | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Operating Loss Carryforwards | 48 | |||
Other Countries | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Operating Loss Carryforwards | 88 | |||
Australia | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Operating Loss Carryforwards | 27 | |||
Discontinued Operations | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Income Tax Holiday, Aggregate Dollar Amount | 0.8 | 1.2 | 0.1 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 2 | |||
Continuing Operations | ||||
(Benefit from) provision for income taxes from continuing operations | ||||
Income Tax Holiday, Aggregate Dollar Amount | $ 0 | $ 7 | $ 0.8 | |
Scenario, Forecast | Materials Handling and Port Solutions Sale | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Reductions for tax positions related to current year | $ (29) |
DISCONTINUED OPERATIONS AND ASS
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Additional Information (Details) - USD ($) $ in Millions | May 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Goodwill Impairment | $ (176) | $ (11.3) | $ 0 | |
Asset Impairments | 3 | 23.9 | $ 3.8 | |
Materials Handling and Port Solutions Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Goodwill Impairment | 11 | |||
Asset Impairments | 3 | $ 23 | ||
Cranes | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 1.6 | |||
Construction | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from Divestiture of Businesses | $ 160 | |||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 3.5 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 01, 2015 | Jun. 03, 2009 | |
Earnings per share | |||||
Income (loss) from continuing operations attributable to Terex Corporation common stockholders (in dollars) | $ (193) | $ 128.4 | $ 253.5 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 13.4 | 14.1 | 6.9 | ||
Gain (loss) on disposition of discontinued operations - net of tax (in dollars) | 3.5 | 3.4 | 58.6 | ||
Net income (loss) attributable to Terex Corporation | $ (176.1) | $ 145.9 | $ 319 | ||
Basic shares: | |||||
Weighted average shares outstanding (in shares) | 107.9 | 107.4 | 109.7 | ||
Earnings per share - basic: | |||||
Income (loss) from continuing operations | $ (1.79) | $ 1.20 | $ 2.31 | ||
Income (loss) from discontinued operations – net of tax | 0.13 | 0.13 | 0.06 | ||
Gain (loss) on disposition of discontinued operations – net of tax | 0.03 | 0.03 | 0.54 | ||
Net income (loss) attributable to Terex Corporation (in dollars per share) | $ (1.63) | $ 1.36 | $ 2.91 | ||
Diluted shares: | |||||
Weighted average shares outstanding (in shares) | 107.9 | 107.4 | 109.7 | ||
Effect of dilutive securities: | |||||
Stock options, restricted stock awards and convertible notes (in shares) | 0 | 2.2 | 4.5 | ||
Diluted weighted average shares outstanding (in shares) | 107.9 | 109.6 | 114.2 | ||
Earnings per share - diluted: | |||||
Income (loss) from continuing operations | $ (1.79) | $ 1.17 | $ 2.22 | ||
Income (loss) from discontinued operations – net of tax | 0.13 | 0.13 | 0.06 | ||
Gain (loss) on disposition of discontinued operations – net of tax | 0.03 | 0.03 | 0.51 | ||
Net income (loss) attributable to Terex Corporation (in dollars per share) | $ (1.63) | $ 1.33 | $ 2.79 | ||
Reconciliation of amounts attributable to common stockholders: | |||||
Income (loss) from continuing operations (in dollars) | $ (193.3) | $ 128.2 | $ 252 | ||
Noncontrolling interest attributable to Income (loss) from continuing operations (in dollars) | 0.3 | 0.2 | 1.5 | ||
Income (loss) from continuing operations attributable to Terex Corporation common stockholders (in dollars) | $ (193) | $ 128.4 | $ 253.5 | ||
Other details of antidilutive securities | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Shares, Issued | 3.4 | ||||
Contingently issuable shares (in shares) | 1.4 | 3.4 | |||
Convertible Subordinated Debt | |||||
Other details of antidilutive securities | |||||
Interest rate of debt securities (as a percent) | 4.00% | ||||
Stock Options | |||||
Other details of antidilutive securities | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.1 | 0.1 | 0.1 | ||
Restricted Stock | |||||
Other details of antidilutive securities | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1.5 | 0.9 | 0.4 |
DISCONTINUED OPERATIONS AND A55
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Income (Loss) From Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (loss) on disposition of discontinued operations | $ 4.5 | $ 4.5 | $ 66.1 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (0.9) | (3.3) | (2) |
Income (loss) from discontinued operations – net of tax | 13.4 | 14.1 | 6.9 |
Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 1,919.6 | ||
Cost of sales | (1,510.2) | ||
Selling, general and administrative expenses | (384.3) | ||
Goodwill and intangible asset impairments | 0 | ||
Net interest (expense) | (3.1) | ||
Other income (expense) | (1.7) | ||
Gain (loss) on disposition of discontinued operations | 20.3 | ||
(Provision for) benefit from income taxes | (11.4) | ||
Income (loss) from discontinued operations – net of tax attributable to Terex Corporation | 8.9 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (2) | ||
Income (loss) from discontinued operations – net of tax | 6.9 | ||
Materials Handling and Port Solutions Sale | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 1,398.2 | 1,521.4 | 1,829.7 |
Cost of sales | (1,090.3) | (1,184.1) | (1,427.8) |
Selling, general and administrative expenses | (266.8) | (271.1) | (378.9) |
Goodwill and intangible asset impairments | (3.1) | (34.7) | 0 |
Net interest (expense) | (2.3) | (1.4) | (3.1) |
Other income (expense) | (11.5) | 0.8 | (1.3) |
Gain (loss) on disposition of discontinued operations | 24.2 | 30.9 | 18.6 |
(Provision for) benefit from income taxes | (9.9) | (13.5) | (11.1) |
Income (loss) from discontinued operations – net of tax attributable to Terex Corporation | 14.3 | 17.4 | 7.5 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (0.9) | (3.3) | (2) |
Income (loss) from discontinued operations – net of tax | $ 13.4 | $ 14.1 | 5.5 |
Construction | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 89.9 | ||
Cost of sales | (82.4) | ||
Selling, general and administrative expenses | (5.4) | ||
Goodwill and intangible asset impairments | 0 | ||
Net interest (expense) | 0 | ||
Other income (expense) | (0.4) | ||
Gain (loss) on disposition of discontinued operations | 1.7 | ||
(Provision for) benefit from income taxes | (0.3) | ||
Income (loss) from discontinued operations – net of tax attributable to Terex Corporation | 1.4 | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | ||
Income (loss) from discontinued operations – net of tax | $ 1.4 |
DISCONTINUED OPERATIONS AND A56
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Assets and Liabilities Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Cash and cash equivalents - held for sale | $ 73.4 | $ 95.3 | $ 85.6 |
Current assets held for sale | 732.9 | 749.6 | |
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||
Non-current assets held for sale | 1,171.3 | 1,160.5 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Current liabilities held for sale | 453.8 | 446 | |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract] | |||
Non-current liabilities held for sale | 312.1 | 298.5 | |
Discontinued Operations, Held-for-sale | |||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Cash and cash equivalents - held for sale | 73.4 | ||
Trade receivables – net | 271 | ||
Inventories | 335 | ||
Prepaid and other current assets | 53.5 | ||
Current assets held for sale | 732.9 | ||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||
Property, plant and equipment – net | 298.2 | ||
Goodwill | 573.7 | ||
Net sales | 215.5 | ||
Disposal Group, Including Discontinued Operations, Impairment Reserve, Noncurrent | (5.2) | ||
Other assets | 89.1 | ||
Non-current assets held for sale | 1,171.3 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Notes payable and current portion of long-term debt | 14.4 | ||
Accounts payable, current | 157.1 | ||
Accruals and other current liabilities | 282.3 | ||
Current liabilities held for sale | 453.8 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract] | |||
Long-term debt, less current portion | 2.4 | ||
Retirement plans | 236.9 | ||
Other non-current liabilities | 72.8 | ||
Non-current liabilities held for sale | 312.1 | ||
Material Handling & Port Solutions | Discontinued Operations, Held-for-sale | |||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Cash and cash equivalents - held for sale | 71 | 95.3 | |
Trade receivables – net | 243.5 | 236 | |
Inventories | 309.4 | 382.1 | |
Prepaid and other current assets | 49.9 | 36.2 | |
Current assets held for sale | 673.8 | 749.6 | |
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||
Property, plant and equipment – net | 294.2 | 303.9 | |
Goodwill | 573.7 | 564.1 | |
Net sales | 212.6 | 226.9 | |
Disposal Group, Including Discontinued Operations, Impairment Reserve, Noncurrent | 0 | 0 | |
Other assets | 86.4 | 65.6 | |
Non-current assets held for sale | 1,166.9 | 1,160.5 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Notes payable and current portion of long-term debt | 13.1 | 13.8 | |
Accounts payable, current | 132.6 | 177 | |
Accruals and other current liabilities | 267 | 255.2 | |
Current liabilities held for sale | 412.7 | 446 | |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract] | |||
Long-term debt, less current portion | 2.4 | 0.1 | |
Retirement plans | 235.3 | 218.7 | |
Other non-current liabilities | 71.7 | 79.7 | |
Non-current liabilities held for sale | 309.4 | $ 298.5 | |
Cranes | Discontinued Operations, Held-for-sale | |||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Cash and cash equivalents - held for sale | 1.2 | ||
Trade receivables – net | 3.1 | ||
Inventories | 1.7 | ||
Prepaid and other current assets | 0.5 | ||
Current assets held for sale | 6.5 | ||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||
Property, plant and equipment – net | 0.8 | ||
Goodwill | 0 | ||
Net sales | 2.9 | ||
Disposal Group, Including Discontinued Operations, Impairment Reserve, Noncurrent | (1.7) | ||
Other assets | 1.1 | ||
Non-current assets held for sale | 3.1 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Notes payable and current portion of long-term debt | 0 | ||
Accounts payable, current | 0.7 | ||
Accruals and other current liabilities | 6.2 | ||
Current liabilities held for sale | 6.9 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract] | |||
Long-term debt, less current portion | 0 | ||
Retirement plans | 0.7 | ||
Other non-current liabilities | 0.4 | ||
Non-current liabilities held for sale | 1.1 | ||
Construction | Discontinued Operations, Held-for-sale | |||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Cash and cash equivalents - held for sale | 1.2 | ||
Trade receivables – net | 24.4 | ||
Inventories | 23.9 | ||
Prepaid and other current assets | 3.1 | ||
Current assets held for sale | 52.6 | ||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent [Abstract] | |||
Property, plant and equipment – net | 3.2 | ||
Goodwill | 0 | ||
Net sales | 0 | ||
Disposal Group, Including Discontinued Operations, Impairment Reserve, Noncurrent | (3.5) | ||
Other assets | 1.6 | ||
Non-current assets held for sale | 1.3 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Notes payable and current portion of long-term debt | 1.3 | ||
Accounts payable, current | 23.8 | ||
Accruals and other current liabilities | 9.1 | ||
Current liabilities held for sale | 34.2 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent [Abstract] | |||
Long-term debt, less current portion | 0 | ||
Retirement plans | 0.9 | ||
Other non-current liabilities | 0.7 | ||
Non-current liabilities held for sale | $ 1.6 |
DISCONTINUED OPERATIONS AND A57
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE - Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash Equivalents not immediately available for use | $ 14 | $ 9.8 | $ 2.2 | |
Cash and cash equivalents: | ||||
Cash and cash equivalents - continuing operations | 428.5 | 371.2 | 392.6 | |
Cash and cash equivalents - held for sale | 73.4 | 95.3 | 85.6 | |
Total cash and cash equivalents: | 501.9 | 466.5 | 478.2 | $ 408.1 |
Non-cash operating items: | ||||
Depreciation and amortization | 22.4 | 55.8 | 66.4 | |
Deferred taxes | 15.8 | (2.2) | (4.5) | |
Goodwill Impairment | 0 | 11.3 | 0 | |
Asset Impairments | 3 | 23.9 | 3.8 | |
Capital expenditures | (14.9) | (22.3) | $ (21.9) | |
Discontinued Operations, Held-for-sale | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents - held for sale | 73.4 | |||
Material Handling & Port Solutions | Discontinued Operations, Held-for-sale | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents - held for sale | $ 71 | $ 95.3 |
DISCONTINUED OPERATIONS - Other
DISCONTINUED OPERATIONS - Other (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Asset Impairments | $ 3 | $ 23.9 | $ 3.8 |
Discontinued operations in the Consolidated Statement of Comprehensive Income | |||
Gain (loss) on disposition of discontinued operations | 4.5 | 4.5 | 66.1 |
(Provision for) benefit from income taxes | (1) | (1.1) | (7.5) |
Gain (loss) on disposition of discontinued operations – net of tax | 3.5 | 3.4 | $ 58.6 |
Materials Handling and Port Solutions Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Asset Impairments | $ 3 | $ 23 |
FINANCE RECEIVABLES - Finance R
FINANCE RECEIVABLES - Finance Receivables, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Significant Sales | $ 290.5 | $ 81.9 | $ 308.2 | |
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group | 4.7 | |||
Total finance receivables, gross | 242.8 | 353.3 | ||
Allowance for credit losses | (6.3) | (7.3) | (3) | $ (2.3) |
Total finance receivables, net | 236.5 | 346 | ||
Commercial Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total finance receivables, gross | 226.4 | 331.4 | ||
Allowance for credit losses | (5.9) | (6.5) | (1.9) | (1.9) |
Sales-type Leases Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total finance receivables, gross | 16.4 | 21.9 | ||
Allowance for credit losses | (0.4) | $ (0.8) | $ (1.1) | $ (0.4) |
Prepaid Expenses and Other Current Assets [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total finance receivables, net | 74 | |||
Other Assets | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total finance receivables, net | $ 162 |
FINANCE RECEIVABLES - Allowance
FINANCE RECEIVABLES - Allowance for Credit Losses on Finance Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | $ 7.3 | $ 3 | $ 2.3 | ||
Provision for credit losses | 0 | 4.3 | 0.7 | ||
Charge offs | (1) | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Ending balance | 6.3 | 7.3 | 3 | ||
Allowance for credit losses, Individually evaluated for impairment | $ 1.6 | $ 2.4 | |||
Allowance for credit losses, Collectively evaluated for impairment | 4.7 | 4.9 | |||
Total allowance for credit losses | 7.3 | 3 | 2.3 | 6.3 | 7.3 |
Finance receivable, Individually evaluated for impairment | 1.6 | 3.7 | |||
Finance receivable, Collectively evaluated for impairment | 241.2 | 349.6 | |||
Total finance receivables | 242.8 | 353.3 | |||
Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 6.5 | 1.9 | 1.9 | ||
Provision for credit losses | 0.2 | 4.6 | 0 | ||
Charge offs | (0.8) | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Ending balance | 5.9 | 6.5 | 1.9 | ||
Allowance for credit losses, Individually evaluated for impairment | 1.6 | 1.9 | |||
Allowance for credit losses, Collectively evaluated for impairment | 4.3 | 4.6 | |||
Total allowance for credit losses | 6.5 | 1.9 | 1.9 | 5.9 | 6.5 |
Finance receivable, Individually evaluated for impairment | 1.6 | 1.9 | |||
Finance receivable, Collectively evaluated for impairment | 224.8 | 329.5 | |||
Total finance receivables | 226.4 | 331.4 | |||
Sales-type Leases Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 0.8 | 1.1 | 0.4 | ||
Provision for credit losses | (0.2) | (0.3) | 0.7 | ||
Charge offs | (0.2) | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Ending balance | 0.4 | 0.8 | 1.1 | ||
Allowance for credit losses, Individually evaluated for impairment | 0 | 0.5 | |||
Allowance for credit losses, Collectively evaluated for impairment | 0.4 | 0.3 | |||
Total allowance for credit losses | $ 0.8 | $ 1.1 | $ 0.4 | 0.4 | 0.8 |
Finance receivable, Individually evaluated for impairment | 0 | 1.8 | |||
Finance receivable, Collectively evaluated for impairment | 16.4 | 20.1 | |||
Total finance receivables | $ 16.4 | $ 21.9 |
FINANCE RECEIVABLES - Impaired
FINANCE RECEIVABLES - Impaired Finance Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | $ 1.6 | $ 3.7 | |
Related allowance | 1.6 | 2.4 | |
Average recorded investment | 2.6 | 3.5 | |
Commercial Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 1.6 | 1.9 | |
Related allowance | 1.6 | 1.9 | |
Average recorded investment | 1.7 | 1 | |
Sales-type Leases Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 1.8 | |
Related allowance | 0 | 0.5 | |
Average recorded investment | $ 0.9 | $ 2.5 | $ 1.7 |
FINANCE RECEIVABLES - Past Due
FINANCE RECEIVABLES - Past Due Finance Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 240 | $ 349.8 |
Total past due | 2.8 | 3.5 |
Total finance receivables | 242.8 | 353.3 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.6 | 1.3 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.8 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1.4 | 2.2 |
Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 224.2 | 329.6 |
Total past due | 2.2 | 1.8 |
Total finance receivables | 226.4 | 331.4 |
Non-accrual status | 7.4 | 4.8 |
Commercial Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.6 | 0.8 |
Commercial Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.2 | 0 |
Commercial Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1.4 | 1 |
Sales-type Leases Portfolio Segment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 15.8 | 20.2 |
Total past due | 0.6 | 1.7 |
Total finance receivables | 16.4 | 21.9 |
Non-accrual status | 0 | 1.3 |
Sales-type Leases Portfolio Segment | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0.5 |
Sales-type Leases Portfolio Segment | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0.6 | 0 |
Sales-type Leases Portfolio Segment | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 0 | $ 1.2 |
FINANCE RECEIVABLES - Finance63
FINANCE RECEIVABLES - Finance Receivable Credit Quality Indicators (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | $ 242.8 | $ 353.3 |
Superior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | 9.6 | 21.5 |
Above Average | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | 64.7 | 159.4 |
Average | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | 111.3 | 117.9 |
Below Average | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | 53 | 44.2 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total finance receivables, gross | $ 4.2 | $ 10.3 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished equipment | $ 334.7 | $ 429.1 |
Replacement parts | 144.9 | 168.3 |
Work-in-process | 175.4 | 190.4 |
Raw materials and supplies | 198.8 | 275.8 |
Inventories | 853.8 | 1,063.6 |
Inventory reserves | $ 83.3 | $ 76.8 |
PROPERTY, PLANT AND EQUIPMENT65
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, plant and equipment. | |||
Gross property, plant and equipment | $ 636.8 | $ 744.3 | |
Less: Accumulated depreciation | (332.2) | (372.4) | |
Net property, plant and equipment | 304.6 | 371.9 | |
Depreciation | 65.5 | 63.9 | $ 70.4 |
Property | |||
Property, plant and equipment. | |||
Gross property, plant and equipment | 36.4 | 37.2 | |
Plant | |||
Property, plant and equipment. | |||
Gross property, plant and equipment | 144.3 | 161.9 | |
Equipment | |||
Property, plant and equipment. | |||
Gross property, plant and equipment | $ 456.1 | $ 545.2 |
EQUIPMENT SUBJECT TO OPERATIN66
EQUIPMENT SUBJECT TO OPERATING LEASES (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)Months | Dec. 31, 2015USD ($) | |
Equipment subject to operating leases | ||
Initial noncancellable lease terms, maximum (in months) | Months | 84 | |
Future minimum lease payments to be received under noncancellable operating leases | ||
2,017 | $ 9.3 | |
2,018 | 4.9 | |
2,019 | 3.5 | |
2,020 | 1.9 | |
2,021 | 1.1 | |
Thereafter | 0.7 | |
Total future minimum lease payments to be received | 21.4 | |
Rental income from assets | ||
Rental income from assets subject to operating leases | 14 | $ 12 |
Property Subject to Operating Lease | ||
Equipment subject to operating leases | ||
Net book value of equipment subject to operating leases | 67 | 58 |
Accumulated depreciation | $ 16 | $ 37 |
DISPOSITIONS (Details)
DISPOSITIONS (Details) - USD ($) $ in Millions | Dec. 31, 2014 | Dec. 19, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2014 |
Business Dispositions | ||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 50.00% | |||||
Construction Segment Sale | ||||||
Business Dispositions | ||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 7.2 | $ 8.1 | ||||
Proceeds from Divestiture of Businesses | $ 60 | |||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down, Net of Tax | $ 3.3 | 5.6 | ||||
A.S.V. Inc | ||||||
Business Dispositions | ||||||
Sale of Subsidiary Percentage | 51.00% | |||||
Ownership Percentage by Partner in Venture | 51.00% | |||||
Company's ownership percentage | 49.00% | |||||
Gain (Loss) on Disposition of Business | $ 17 | |||||
Demag Cranes and Components Pty. Ltd. | ||||||
Business Dispositions | ||||||
Sale of Subsidiary Percentage | 100.00% | 100.00% | ||||
Gain (Loss) on Disposition of Business | $ 33 | |||||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | 23 | |||||
Goodwill, Written off Related to Sale of Business Unit | $ 6 | |||||
Cost of Sales | Construction Segment Sale | ||||||
Business Dispositions | ||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 4 | |||||
Selling, General and Administrative Expenses | Construction Segment Sale | ||||||
Business Dispositions | ||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 4.1 |
GOODWILL AND INTANGIBLE ASSET68
GOODWILL AND INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill by business segment | ||||
Goodwill, Impairment Loss | $ 0 | $ 0 | ||
Changes in goodwill by business segment | ||||
Balance at the beginning of the period, goodwill gross | $ 525.1 | 536.3 | ||
Balance at the end of the period, goodwill gross | 500.8 | 525.1 | 536.3 | |
Accumulated impairment | (241.1) | (66) | (66) | |
Balance at the beginning of the period, goodwill net | 459.1 | 470.3 | ||
Balance at the end of the period, goodwill net | 259.7 | 459.1 | 470.3 | |
Acquisitions | 1.6 | 14.4 | ||
Foreign exchange effect and other | (25.9) | (25.6) | ||
Aerial Work Platforms | ||||
Goodwill by business segment | ||||
Goodwill, Other Changes | 0.9 | |||
Changes in goodwill by business segment | ||||
Balance at the beginning of the period, goodwill gross | 137.7 | 139.4 | ||
Balance at the end of the period, goodwill gross | 137.7 | 137.7 | 139.4 | |
Accumulated impairment | (38.6) | (38.6) | (38.6) | |
Balance at the beginning of the period, goodwill net | 99.1 | 100.8 | ||
Balance at the end of the period, goodwill net | 99.1 | 99.1 | 100.8 | |
Acquisitions | 1.6 | 0 | ||
Foreign exchange effect and other | (1.6) | (1.7) | ||
Cranes | ||||
Goodwill by business segment | ||||
Goodwill, Impairment Loss | (176) | |||
Changes in goodwill by business segment | ||||
Balance at the beginning of the period, goodwill gross | 183.1 | 198.8 | ||
Balance at the end of the period, goodwill gross | 179.3 | 183.1 | 198.8 | |
Accumulated impairment | (179.3) | (4.2) | (4.2) | |
Balance at the beginning of the period, goodwill net | 178.9 | 194.6 | ||
Balance at the end of the period, goodwill net | 0 | 178.9 | 194.6 | |
Acquisitions | 0 | 0 | ||
Foreign exchange effect and other | (3.8) | (15.7) | ||
Materials Processing | ||||
Changes in goodwill by business segment | ||||
Balance at the beginning of the period, goodwill gross | 204.3 | 198.1 | ||
Balance at the end of the period, goodwill gross | 183.8 | 204.3 | 198.1 | |
Accumulated impairment | (23.2) | (23.2) | (23.2) | |
Balance at the beginning of the period, goodwill net | 181.1 | 174.9 | ||
Balance at the end of the period, goodwill net | 160.6 | 181.1 | $ 174.9 | |
Acquisitions | 0 | 14.4 | ||
Foreign exchange effect and other | (20.5) | $ (8.2) | ||
Construction | ||||
Goodwill by business segment | ||||
Goodwill, Fully Impaired Goodwill Written Off | $ 132.8 | |||
Discontinued Operations | ||||
Goodwill by business segment | ||||
Goodwill, Other Changes | $ 17.9 |
GOODWILL AND INTANGIBLE ASSET69
GOODWILL AND INTANGIBLE ASSETS, NET INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets - Gross Carrying Amount | $ 83.8 | $ 88.3 | |
Definite-lived intangible assets - Accumulated Amortization | (65.4) | (65.7) | |
Definite-lived intangible assets - Net Carrying Amount | 18.4 | 22.6 | |
Aggregate Amortization Expense | 2.9 | 3 | $ 11.5 |
Estimated Aggregate Intangible Asset Amortization Expense | |||
2,017 | 2.1 | ||
2,018 | 1.9 | ||
2,019 | 1.8 | ||
2,020 | 1.8 | ||
2,021 | $ 1.7 | ||
Technology, Intangible Asset | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets - Weighted Average Life (in years) | 7 years | ||
Definite-lived intangible assets - Gross Carrying Amount | $ 17 | 17.3 | |
Definite-lived intangible assets - Accumulated Amortization | (15.7) | (15.7) | |
Definite-lived intangible assets - Net Carrying Amount | $ 1.3 | 1.6 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets - Weighted Average Life (in years) | 20 years | ||
Definite-lived intangible assets - Gross Carrying Amount | $ 33.1 | 34.8 | |
Definite-lived intangible assets - Accumulated Amortization | (25.2) | (24.9) | |
Definite-lived intangible assets - Net Carrying Amount | $ 7.9 | 9.9 | |
Land Use Rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets - Weighted Average Life (in years) | 68 years | ||
Definite-lived intangible assets - Gross Carrying Amount | $ 7.9 | 8.2 | |
Definite-lived intangible assets - Accumulated Amortization | (0.9) | (0.9) | |
Definite-lived intangible assets - Net Carrying Amount | $ 7 | 7.3 | |
Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets - Weighted Average Life (in years) | 6 years | ||
Definite-lived intangible assets - Gross Carrying Amount | $ 25.8 | 28 | |
Definite-lived intangible assets - Accumulated Amortization | (23.6) | (24.2) | |
Definite-lived intangible assets - Net Carrying Amount | $ 2.2 | $ 3.8 |
DERIVATIVE FINANCIAL INSTRUME70
DERIVATIVE FINANCIAL INSTRUMENTS Narratives (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)types | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Derivative [Line Items] | |||
Derivatives, Derivative Types | types | 2 | ||
Period of time that currency exchange forward contracts generally mature (in years) | 1 year | ||
Unrealized net gains (losses) included in Accumulated other Comprehensive Income [Abstract] | |||
Balance at beginning of period | $ 2.3 | $ (0.7) | $ 2.7 |
Additional gains (losses) – net | (5.7) | 9.2 | (1.4) |
Amounts reclassified to earnings | 1 | (6.2) | (2) |
Balance at end of period | (2.4) | 2.3 | (0.7) |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (2.4) | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Derivative [Line Items] | |||
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | (2.6) | (3.1) | |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0.2 | ||
Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 245.5 | ||
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 194 | ||
Unrealized gain on fair value of currency exchange forward cash flow hedge contracts | (2.7) | ||
Other Comprehensive Income (Loss) | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (4.7) | 3 | (3.4) |
Other Comprehensive Income (Loss) | Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (4.5) | 2.8 | (3.4) |
Other Comprehensive Income (Loss) | Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (0.2) | $ 0.2 | $ 0 |
Materials Handling and Port Solutions Sale | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Derivative [Line Items] | |||
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | 2 | ||
Materials Handling and Port Solutions Sale | Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 100 |
DERIVATIVE FINANCIAL INSTRUME71
DERIVATIVE FINANCIAL INSTRUMENTS Balance Sheet Table (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 4.2 | $ 4.9 |
Derivative Liability, Fair Value, Gross Liability | (6.8) | (1.5) |
Derivative, Fair Value, Net | (2.6) | 3.4 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3.7 | 1.6 |
Derivative Liability, Fair Value, Gross Liability | (1.2) | (0.2) |
Derivative, Fair Value, Net | 2.5 | 1.4 |
Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 4.2 | 4 |
Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (6.8) | (0.8) |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2.6 | 0.5 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (1.2) | (0.2) |
Interest Rate Swap | Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0.9 |
Interest Rate Swap | Designated as Hedging Instrument | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | (0.7) |
Convertible Debt Securities | Not Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 1.1 | $ 1.1 |
DERIVATIVE FINANCIAL INSTRUME72
DERIVATIVE FINANCIAL INSTRUMENTS Income Statement Tables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Not Designated as Hedging Instrument | Other Contract | Other Income (Expense) Net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 0.9 | $ (3.4) | $ 0.5 |
Designated as Hedging Instrument | Other Comprehensive Income (Loss) | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (4.7) | 3 | (3.4) |
Designated as Hedging Instrument | Foreign Exchange Contract | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 1 | 2.2 | (0.8) |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Comprehensive Income (Loss) | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (4.5) | 2.8 | (3.4) |
Designated as Hedging Instrument | Foreign Exchange Contract | Cost of Sales | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2) | 1.6 | 2.5 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Income (Expense) Net | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | (0.1) | 0.5 |
Designated as Hedging Instrument | Interest Rate Swap | Other Comprehensive Income (Loss) | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (0.2) | 0.2 | 0 |
Interest Rate Swap | Designated as Hedging Instrument | Foreign Exchange Contract | Cost of Sales | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 1 | $ 2.3 | $ (1.3) |
RESTRUCTURING AND OTHER CHARG73
RESTRUCTURING AND OTHER CHARGES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)teammembers | Dec. 31, 2015USD ($)teammembers | Dec. 31, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | $ 81.1 | ||
Cumulative amount incurred | 82.9 | ||
Total amount expected to be incurred | 85.1 | ||
Roll forward of the restructuring reserve by type of restructuring activity | |||
Restructuring reserve balance at the beginning of the period | 0.9 | ||
Restructuring charges | 70.9 | ||
Restructuring Reserve, Accrual Adjustment | (9.6) | ||
Cash expenditures | (4.7) | ||
Restructuring Reserve, Translation and Other Adjustment | 0.7 | ||
Restructuring reserve balance at the end of the period | 56.8 | $ 0.9 | |
Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 42.6 | 0.3 | $ 0.3 |
Operating Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 20.8 | 1.1 | 0.3 |
Restructuring Charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | $ 17.7 | 0.4 | 0 |
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated | teammembers | 69 | ||
Amount incurred | $ 0.9 | ||
Employee Termination Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 61.7 | $ 0 | |
Cumulative amount incurred | 62.9 | ||
Total amount expected to be incurred | 64.4 | ||
Roll forward of the restructuring reserve by type of restructuring activity | |||
Restructuring reserve balance at the beginning of the period | 0.9 | ||
Restructuring charges | 70.9 | ||
Restructuring Reserve, Accrual Adjustment | (9.6) | ||
Cash expenditures | (4.7) | ||
Restructuring Reserve, Translation and Other Adjustment | 0.7 | ||
Restructuring reserve balance at the end of the period | 56.8 | $ 0.9 | |
Employee Termination Costs | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 21.1 | ||
Employee Termination Costs | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 12.7 | ||
Facility Exit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 1.7 | ||
Cumulative amount incurred | 1.8 | ||
Total amount expected to be incurred | 2.5 | ||
Asset Disposal and Other Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 17.7 | ||
Cumulative amount incurred | 18.2 | ||
Total amount expected to be incurred | 18.2 | ||
Aerial Work Platforms | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 0.9 | ||
Cumulative amount incurred | 0.9 | ||
Total amount expected to be incurred | 0.9 | ||
Cranes | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 76.9 | ||
Cumulative amount incurred | 77.7 | ||
Total amount expected to be incurred | 79.9 | ||
Cranes | Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 0.8 | ||
Materials Processing | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 0.4 | ||
Cumulative amount incurred | 1.4 | ||
Total amount expected to be incurred | 1.4 | ||
Materials Processing | Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 0.1 | ||
Corporate and Other / Eliminations | |||
Restructuring Cost and Reserve [Line Items] | |||
Amount incurred | 2.9 | ||
Cumulative amount incurred | 2.9 | ||
Total amount expected to be incurred | $ 2.9 | ||
United States | Cranes | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated | teammembers | 1,260 | ||
United States | Materials Processing | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated | teammembers | 38 | ||
Amount incurred | $ 0.9 | ||
United States | Corporate and Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected number of positions eliminated | teammembers | 32 |
LONG-TERM OBLIGATIONS DEBT SUMM
LONG-TERM OBLIGATIONS DEBT SUMMARY TABLE (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 26, 2012 | Mar. 26, 2012 |
Debt Instrument | ||||
Long-term debt | $ 1,572.9 | |||
Total debt | 1,575.8 | $ 1,796.2 | ||
Notes payable and current portion of long-term debt | 13.8 | 66.4 | ||
Long-term debt, less current portion | 1,562 | 1,729.8 | ||
Capital Lease Obligations | ||||
Debt Instrument | ||||
Capital lease obligations | 2.9 | 4.9 | ||
Other Debt Obligations | ||||
Debt Instrument | ||||
Long-term debt | 11.8 | 16.7 | ||
6-1/2% Senior Notes due April 1, 2020 | ||||
Debt Instrument | ||||
Long-term debt | 300 | 300 | $ 300 | |
6-1/2% Senior Notes due April 1, 2020 | Senior Notes | ||||
Debt Instrument | ||||
Long-term debt | 297.9 | 297.2 | ||
Securitization 2,015 | ||||
Debt Instrument | ||||
Long-term Line of Credit | 0 | 206.5 | ||
6% Senior Notes due May 15, 2021 | ||||
Debt Instrument | ||||
Long-term debt | 850 | 850 | $ 850 | |
6% Senior Notes due May 15, 2021 | Senior Notes | ||||
Debt Instrument | ||||
Long-term debt | 842.5 | 840.8 | ||
Credit Agreement 2014 | ||||
Debt Instrument | ||||
Long-term debt | 428.6 | 439.2 | ||
Credit Agreement 2014 | Credit Agreement | ||||
Debt Instrument | ||||
Long-term debt | $ 420.7 | $ 430.1 |
LONG-TERM OBLIGATIONS MATURITY
LONG-TERM OBLIGATIONS MATURITY TABLE (Details) $ in Millions | Dec. 31, 2016USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,017 | $ 13.6 |
2,018 | 4.7 |
2,019 | 4.4 |
2,020 | 304 |
2,021 | 1,262.6 |
Thereafter | 1.1 |
Total | 1,590.4 |
Deferred Finance Costs, Net | (17.5) |
Long-term debt | $ 1,572.9 |
LONG-TERM OBLIGATIONS LONG-TERM
LONG-TERM OBLIGATIONS LONG-TERM OBLIGATIONS DEBT FAIR VALUE TABLES (Details) $ in Millions | Dec. 31, 2016USD ($)factor | Dec. 31, 2015USD ($)factor | Nov. 26, 2012USD ($) | Mar. 26, 2012USD ($) | Jun. 03, 2009USD ($) |
Debt Instrument | |||||
Book Value | $ 1,572.9 | ||||
6-1/2% Senior Notes | |||||
Debt Instrument | |||||
Book Value | $ 300 | $ 300 | $ 300 | ||
Quote | factor | 1.02500 | 0.96000 | |||
Fair Value | $ 308 | $ 288 | |||
6% Notes | |||||
Debt Instrument | |||||
Book Value | $ 850 | $ 850 | $ 850 | ||
Quote | factor | 1.02750 | 0.91500 | |||
Fair Value | $ 873 | $ 778 | |||
4% Convertible Notes (net of discount) | |||||
Debt Instrument | |||||
Book Value | $ 172.5 | ||||
Credit Agreement Term Loan (net of discount) - USD | |||||
Debt Instrument | |||||
Book Value | $ 223.5 | $ 225.5 | |||
Quote | factor | 1 | 0.99000 | |||
Fair Value | $ 224 | $ 223 | |||
Credit Agreement Term Loan (net of discount) - EUR | |||||
Debt Instrument | |||||
Book Value | $ 205.1 | $ 213.7 | |||
Quote | factor | 0.99500 | 0.99750 | |||
Fair Value | $ 204 | $ 213 |
LONG-TERM OBLIGATIONS NARRATIVE
LONG-TERM OBLIGATIONS NARRATIVES (Details) $ / shares in Units, € in Millions, shares in Millions, $ in Millions | Jan. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Aug. 31, 2012 | Dec. 31, 2015USD ($)$ / shares | May 28, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Jun. 01, 2015USD ($)shares | Aug. 13, 2014USD ($) | Aug. 13, 2014EUR (€) | Nov. 26, 2012USD ($) | Mar. 26, 2012USD ($) | Jun. 03, 2009USD ($) | Nov. 13, 2007USD ($) |
Debt Instrument | ||||||||||||||||
Springing Covenant Threshold | 30.00% | 30.00% | ||||||||||||||
Loss on early extinguishment of debt | $ 0.1 | $ 2.6 | ||||||||||||||
Repayments of Debt | $ 1,286.3 | 1,397.8 | 1,801.8 | |||||||||||||
Long-term debt | 1,572.9 | |||||||||||||||
Letters of Credit Outstanding, Amount | $ 210.9 | 183.2 | 210.9 | |||||||||||||
Interest Paid | $ 96.2 | $ 98.9 | $ 105.9 | |||||||||||||
Shares, Issued | shares | 3.4 | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Deferred Finance Costs, Net | $ (17.5) | |||||||||||||||
Revolving Credit Facility | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Revolving line of credit available borrowing capacity | $ 600 | |||||||||||||||
Long-term debt | $ 0 | 0 | $ 0 | |||||||||||||
2014 Credit Agreement Term Loan (net of discount) - USD | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term Line of Credit | 230 | |||||||||||||||
Long-term debt | $ 225.5 | 223.5 | $ 225.5 | |||||||||||||
2014 Credit Agreement Term Loan (net of discount) - EUR | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term Line of Credit | € | € 200 | |||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | 3.25% | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.75% | |||||||||||||||
Long-term debt | $ 213.7 | $ 205.1 | $ 213.7 | |||||||||||||
Credit Agreement 2014 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument Covenant Minimum Interest Coverage Ratio | 2.5 | |||||||||||||||
Debt Instrument Covenant Senior Secured Debt Leverage Ratio Maximum | 2.75 | |||||||||||||||
Long-term debt | $ 439.2 | $ 428.6 | $ 439.2 | |||||||||||||
Debt, Weighted Average Interest Rate | 3.50% | 3.63% | 3.50% | |||||||||||||
Letters of Credit Maximum Available under Credit Facility | $ 400 | |||||||||||||||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | $ 0 | |||||||||||||
Debt Instrument Collateral Percentage of Material Subsidiaries Capital Stock | 65.00% | 65.00% | ||||||||||||||
Letters of Credit Maximum Available under Additional Facilities | $ 300 | |||||||||||||||
Debt Instrument Waived Covenant, Minimum Percentage To Be Received In Cash and Cash Equivalents From Stock And Asset Purchase Agreement | 75.00% | |||||||||||||||
Debt Instrument Covenant, Cash Proceeds Received From Stock And Asset Purchase Agreement Used to Reduce Indebtedness | $ 300 | |||||||||||||||
Debt Instrument Covenant, Number Of Days From When Consideration Is Received From Stock Purchase Agreement And Is Remitted To Reduce Indebtedness | 60 days | |||||||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | 0.3 | |||||||||||||||
2014 Credit Agreement Additional LC Arrangements | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Letters of Credit Outstanding, Amount | 21.2 | 36.8 | 21.2 | |||||||||||||
Bilateral LC Arrangements | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Letters of Credit Outstanding, Amount | 189.7 | 146.4 | 189.7 | |||||||||||||
8% Senior Subordinated Notes due November 15, 2017 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | $ 800 | |||||||||||||||
Interest rate of debt securities (as a percent) | 8.00% | |||||||||||||||
4% Convertible Senior Subordinated Notes due June 1, 2015 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Repayments of Debt | 131.1 | |||||||||||||||
Long-term debt | $ 172.5 | |||||||||||||||
Interest Expense, Debt | 5.7 | $ 13.5 | ||||||||||||||
Interest rate of debt securities (as a percent) | 4.00% | |||||||||||||||
Long-Term Debt Maturity Value | $ 128.8 | |||||||||||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 54.3 | |||||||||||||||
Debt Instrument Convertible Deferred Tax Liability on Equity Component | $ 19.4 | |||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 25.00% | |||||||||||||||
Interest Paid | 2.3 | |||||||||||||||
Securitization 2,015 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Revolving line of credit available borrowing capacity | $ 350 | |||||||||||||||
Long-term Line of Credit | $ 206.5 | 0 | $ 206.5 | |||||||||||||
Debt, Weighted Average Interest Rate | 1.46% | 1.46% | ||||||||||||||
Write off of Deferred Debt Issuance Cost | 0.4 | |||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.13% | 2.13% | ||||||||||||||
Commitment Letter | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Professional Fees | 7.2 | |||||||||||||||
6-1/2% Senior Notes due April 1, 2020 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | $ 300 | $ 300 | $ 300 | $ 300 | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 103.25% | |||||||||||||||
Debt Instrument, Indenture Amendment, Costs Incurred to Date | $ 0.4 | |||||||||||||||
6% Senior Notes due May 15, 2021 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | 850 | $ 850 | 850 | $ 850 | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 103.00% | |||||||||||||||
Interest rate of debt securities (as a percent) | 6.00% | |||||||||||||||
Debt Instrument, Indenture Amendment, Costs Incurred to Date | $ 1.1 | |||||||||||||||
Senior Notes | 6-1/2% Senior Notes due April 1, 2020 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | 297.2 | $ 297.9 | 297.2 | |||||||||||||
Interest rate of debt securities (as a percent) | 6.50% | |||||||||||||||
Deferred Finance Costs, Net | (2.8) | $ (2.1) | (2.8) | |||||||||||||
Senior Notes | 6% Senior Notes due May 15, 2021 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | 840.8 | $ 842.5 | 840.8 | |||||||||||||
Interest rate of debt securities (as a percent) | 6.00% | |||||||||||||||
Deferred Finance Costs, Net | (9.2) | $ (7.5) | (9.2) | |||||||||||||
Credit Agreement | Credit Agreement 2014 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term debt | 430.1 | 420.7 | 430.1 | |||||||||||||
Deferred Finance Costs, Net | (9.1) | (7.9) | (9.1) | |||||||||||||
Merger | SeniorNotesDueApril1202065 [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Indenture Amendment, Bondholder Consent Fees | 1.1 | |||||||||||||||
Merger | 6% Senior Notes due May 15, 2021 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Indenture Amendment, Bondholder Consent Fees | 3.1 | |||||||||||||||
Scenario, Forecast | Senior Notes | Senior Notes 6% and 6.5% [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Loss on early extinguishment of debt | $ 44 | |||||||||||||||
Scenario, Forecast | Credit Agreement | Credit Agreement 2014 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Loss on early extinguishment of debt | $ 8 | |||||||||||||||
Discontinued Operations | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Letters of Credit Outstanding, Amount | 153.6 | 121.4 | 153.6 | |||||||||||||
Discontinued Operations | Bilateral LC Arrangements | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Letters of Credit Outstanding, Amount | $ 153.6 | $ 121.4 | $ 153.6 | |||||||||||||
Subsequent Event | Credit Agreement 2017 [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Line of Credit Facility, Incremental Borrowing Capacity | $ 300 | |||||||||||||||
Springing Covenant Threshold | 30.00% | |||||||||||||||
Debt Instrument Covenant Minimum Interest Coverage Ratio | 2.5 | |||||||||||||||
Debt Instrument Covenant Senior Secured Debt Leverage Ratio Maximum | 2.75 | |||||||||||||||
Debt Instrument Collateral Percentage of Material Subsidiaries Capital Stock | 65.00% | |||||||||||||||
Subsequent Event | Senior Notes | Senior Notes Due 2025 5 5/8 Percent [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate of debt securities (as a percent) | 5.625% | |||||||||||||||
Debt Instrument, Face Amount | $ 600 | |||||||||||||||
Subsequent Event | Senior Notes | 6-1/2% Senior Notes due April 1, 2020 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Authorized Repurchase Amount | 300 | |||||||||||||||
Subsequent Event | Senior Notes | 6% Senior Notes due May 15, 2021 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Authorized Repurchase Amount | 550 | |||||||||||||||
Subsequent Event | Senior Notes | Senior Notes, 6%, $300 Million Partial Redemption [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Authorized Repurchase Amount | 300 | |||||||||||||||
Subsequent Event | Secured Debt [Member] | Credit Agreement 2017 [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Revolving line of credit available borrowing capacity | 400 | |||||||||||||||
Subsequent Event | Revolving Credit Facility | Credit Agreement 2017 [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Revolving line of credit available borrowing capacity | $ 450 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating lease payments | |||
2,017 | $ 32.5 | ||
2,018 | 21 | ||
2,019 | 16.4 | ||
2,020 | 11.2 | ||
2,021 | 10.5 | ||
Thereafter | 40.7 | ||
Total minimum obligations | 132.3 | ||
Total rental expense under operating leases | $ 44.3 | $ 49.6 | $ 50.4 |
Retirement Plans and Other Prim
Retirement Plans and Other Primary Tables (Details) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)pensionplansshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum Contribution Requirement | $ 0 | $ 0 | $ 0 | |
Number of common shares held in rabbi trust (in shares) | shares | 0.9 | 0.8 | ||
Amounts recognized in the statement of financial position consist of: | ||||
Non-current liabilities | $ 153.8 | $ 157 | ||
U.S. Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of qualified pension plans maintained by entity | pensionplans | 1 | |||
Basis of Serp Benefit Compensation Earned Years of Employment | 5 years | |||
Accumulated benefit obligation at end of year | $ 161.2 | 167.2 | ||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 174 | 184.9 | ||
Service cost | 0.6 | 1.1 | 0.9 | |
Interest cost | 7.1 | 7.2 | 7.2 | |
Acquisitions and divestitures | 0 | 0 | ||
Actuarial loss (gain) | 2.5 | (7.8) | ||
Benefits paid | (16.6) | (11.4) | ||
Foreign Exchange effect | 0 | 0 | ||
Benefit obligation at end of year | 167.6 | 174 | 184.9 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 123.1 | 136.8 | ||
Actual return on plan assets | 9.5 | (2.4) | ||
Employer contribution | 1.1 | 0.1 | ||
Employee contribution | 0 | 0 | 0 | |
Benefits paid | (16.6) | (11.4) | ||
Foreign exchange effect | 0 | 0 | ||
Fair value of plan assets at end of year | 117.1 | 123.1 | $ 136.8 | |
Funded status | (50.5) | (50.9) | ||
Amounts recognized in the statement of financial position consist of: | ||||
Current liabilities | 1.2 | 1 | ||
Non-current liabilities | 49.3 | 49.9 | ||
Total liabilities | 50.5 | 50.9 | ||
Amounts recognized in accumulated other comprehensive income consist of: | ||||
Actuarial net loss | 75.6 | 78.5 | ||
Prior service cost | 0.3 | 0.4 | ||
Total amounts recognized in accumulated other comprehensive income | $ 75.9 | $ 78.9 | ||
Weighted-average assumptions as of December 31: | ||||
Discount rate | [1] | 4.03% | 4.20% | 4.02% |
Expected return on plan assets | 7.00% | 7.50% | 7.50% | |
Rate of compensation increase | [1] | 3.75% | 3.75% | 3.75% |
Components of net periodic cost: | ||||
Service cost | $ 0.6 | $ 1.1 | $ 0.9 | |
Interest cost | 7.1 | 7.2 | 7.2 | |
Expected return on plan assets | (8.3) | (9.9) | (9.2) | |
Recognition of prior service cost | 0.2 | 0.1 | 0.1 | |
Amortization of actuarial loss | 4.2 | 3.8 | 2.1 | |
Other | 0 | 0 | 0 | |
Net periodic cost | 3.8 | 2.3 | 1.1 | |
Non-U.S. Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation at end of year | 209.7 | 214.9 | ||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 217.1 | 243 | ||
Service cost | 3.1 | 2.9 | 1.6 | |
Interest cost | 6.5 | 6.9 | 8.9 | |
Acquisitions and divestitures | (5.5) | 0 | ||
Actuarial loss (gain) | 25.9 | (9.9) | ||
Benefits paid | (9.4) | (8.8) | ||
Foreign Exchange effect | (26.2) | (17) | ||
Benefit obligation at end of year | 211.5 | 217.1 | 243 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 111.2 | 119 | ||
Actual return on plan assets | 18.4 | (0.3) | ||
Employer contribution | 6.7 | 7.2 | ||
Employee contribution | 0.4 | 0.3 | 0 | |
Benefits paid | (9.4) | (8.8) | ||
Foreign exchange effect | (19) | (6.2) | ||
Fair value of plan assets at end of year | 108.3 | 111.2 | $ 119 | |
Funded status | (103.2) | (105.9) | ||
Amounts recognized in the statement of financial position consist of: | ||||
Current liabilities | 2.4 | 3.1 | ||
Non-current liabilities | 100.8 | 102.8 | ||
Total liabilities | 103.2 | 105.9 | ||
Amounts recognized in accumulated other comprehensive income consist of: | ||||
Actuarial net loss | 148.5 | 126.5 | ||
Prior service cost | (2.2) | 0.2 | ||
Total amounts recognized in accumulated other comprehensive income | $ 146.3 | $ 126.7 | ||
Weighted-average assumptions as of December 31: | ||||
Discount rate | [1] | 2.27% | 3.23% | 2.97% |
Expected return on plan assets | 5.90% | 5.93% | 5.96% | |
Rate of compensation increase | [1] | 0.89% | 0.83% | 0.84% |
Components of net periodic cost: | ||||
Service cost | $ 3.1 | $ 2.9 | $ 1.6 | |
Interest cost | 6.5 | 6.9 | 8.9 | |
Expected return on plan assets | (6) | (7) | (6.7) | |
Recognition of prior service cost | 0 | 0 | 2 | |
Amortization of actuarial loss | 2.5 | 3.2 | 1.8 | |
Other | (0.4) | (0.3) | 0 | |
Net periodic cost | 5.7 | 5.7 | 7.6 | |
Savings Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee Benefits and Share-based Compensation | 19.3 | 20.6 | 18.1 | |
Other Benefits | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 4.9 | 5.7 | ||
Service cost | 0 | 0 | 0 | |
Interest cost | 0.2 | 0.2 | 0.2 | |
Acquisitions and divestitures | 0 | 0 | ||
Actuarial loss (gain) | (0.6) | (0.5) | ||
Benefits paid | (0.3) | (0.5) | ||
Foreign Exchange effect | 0 | 0 | ||
Benefit obligation at end of year | 4.2 | 4.9 | 5.7 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contribution | 0.3 | 0.5 | ||
Employee contribution | 0 | 0 | 0 | |
Benefits paid | (0.3) | (0.5) | ||
Foreign exchange effect | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | $ 0 | |
Funded status | (4.2) | (4.9) | ||
Amounts recognized in the statement of financial position consist of: | ||||
Current liabilities | 0.5 | 0.6 | ||
Non-current liabilities | 3.7 | 4.3 | ||
Total liabilities | 4.2 | 4.9 | ||
Amounts recognized in accumulated other comprehensive income consist of: | ||||
Actuarial net loss | 0 | 0.6 | ||
Prior service cost | 0 | 0 | ||
Total amounts recognized in accumulated other comprehensive income | $ 0 | $ 0.6 | ||
Weighted-average assumptions as of December 31: | ||||
Discount rate | [1] | 3.81% | 3.91% | 3.74% |
Components of net periodic cost: | ||||
Service cost | $ 0 | $ 0 | $ 0 | |
Interest cost | 0.2 | 0.2 | 0.2 | |
Expected return on plan assets | 0 | 0 | 0 | |
Recognition of prior service cost | 0 | 0 | 0 | |
Amortization of actuarial loss | 0 | 0.1 | 0.1 | |
Other | 0 | 0 | 0 | |
Net periodic cost | $ 0.2 | $ 0.3 | $ 0.3 | |
[1] | The weighted average assumptions as of December 31 are used to calculate the funded status at the end of the current year and the net periodic cost for the subsequent year. |
Retirement Plans and Other OCI
Retirement Plans and Other OCI and Asset Allocation (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Pension Benefits | ||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||
Net (gain) loss | $ 1.3 | $ 4.3 | ||
Amortization of actuarial losses | (4.2) | (3.7) | ||
Amortization of prior service cost | (0.1) | (0.1) | ||
Foreign exchange effect | 0 | 0 | ||
Total recognized in other comprehensive income | (3) | 0.5 | ||
Amounts expected to be recognized as components of net periodic cost at the end of the period | ||||
Actuarial net loss | 4.1 | |||
Prior service cost | 0.1 | |||
Total amount expected to be recognized as components of net periodic cost at the end of the period | 4.2 | |||
Accumulated Benefit Obligations in Excess of Plan Assets | ||||
Projected benefit obligation | 167.6 | 174 | ||
Accumulated benefit obligation | 161.2 | 167.2 | ||
Fair value of plan assets | $ 117.1 | $ 123.1 | ||
Investment Strategy [Abstract] | ||||
Expected return on plan assets | 7.00% | 7.50% | 7.50% | |
Non-U.S. Pension Benefits | ||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||
Net (gain) loss | $ 39.7 | $ (12.9) | ||
Amortization of actuarial losses | (5.6) | (7.5) | ||
Amortization of prior service cost | (2.3) | (0.1) | ||
Foreign exchange effect | (12.2) | (12.7) | ||
Total recognized in other comprehensive income | 19.6 | (33.2) | ||
Amounts expected to be recognized as components of net periodic cost at the end of the period | ||||
Actuarial net loss | 3.3 | |||
Prior service cost | 0 | |||
Total amount expected to be recognized as components of net periodic cost at the end of the period | 3.3 | |||
Accumulated Benefit Obligations in Excess of Plan Assets | ||||
Projected benefit obligation | 211.5 | 217.1 | ||
Accumulated benefit obligation | 209.7 | 214.9 | ||
Fair value of plan assets | $ 108.3 | $ 111.2 | ||
Investment Strategy [Abstract] | ||||
Expected return on plan assets | 5.90% | 5.93% | 5.96% | |
U.S. Other Benefits | ||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||
Net (gain) loss | $ (0.6) | $ (0.5) | ||
Amortization of actuarial losses | 0 | 0 | ||
Amortization of prior service cost | 0 | 0 | ||
Foreign exchange effect | 0 | 0 | ||
Total recognized in other comprehensive income | (0.6) | $ (0.5) | ||
Amounts expected to be recognized as components of net periodic cost at the end of the period | ||||
Actuarial net loss | 0 | |||
Prior service cost | 0 | |||
Total amount expected to be recognized as components of net periodic cost at the end of the period | $ 0 | |||
Equity Securities | U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Defined Benefit Plan, Actual Plan Asset Allocations | 32.00% | 31.00% | ||
Fixed Income Securities | U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Defined Benefit Plan, Actual Plan Asset Allocations | 68.00% | 69.00% | ||
Fixed Income Securities | Non-U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Defined Benefit Plan, Actual Plan Asset Allocations | 72.00% | |||
Equity Funds | Non-U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Defined Benefit Plan, Actual Plan Asset Allocations | 28.00% | |||
North America | Non-U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Defined Benefit Plan, Actual Plan Asset Allocations | 7.00% | |||
Europe | Non-U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Defined Benefit Plan, Actual Plan Asset Allocations | 93.00% | |||
Subsequent Event | U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Expected return on plan assets | 7.00% | |||
Subsequent Event | Minimum | Equity Securities | U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Target plan asset allocations | 22.00% | |||
Subsequent Event | Minimum | Equity Securities | Non-U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Target plan asset allocations | 34.00% | |||
Subsequent Event | Minimum | Fixed Income Securities | U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Target plan asset allocations | 64.00% | |||
Subsequent Event | Minimum | Fixed Income Securities | Non-U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Target plan asset allocations | 65.00% | |||
Subsequent Event | Maximum | Equity Securities | U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Target plan asset allocations | 36.00% | |||
Subsequent Event | Maximum | Equity Securities | Non-U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Target plan asset allocations | 35.00% | |||
Subsequent Event | Maximum | Fixed Income Securities | U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Target plan asset allocations | 78.00% | |||
Subsequent Event | Maximum | Fixed Income Securities | Non-U.S. Pension Benefits | ||||
Investment Strategy [Abstract] | ||||
Target plan asset allocations | 66.00% |
Retirement Plans and Other Inve
Retirement Plans and Other Investment Categories (Details 3) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | $ 117.1 | $ 123.1 | $ 136.8 |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 114.6 | 119.5 | |
U.S. Pension Benefits | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 2.5 | 3.6 | |
U.S. Pension Benefits | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Cash, including money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 2.5 | 3.6 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
U.S. Pension Benefits | Cash, including money market funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 2.5 | 3.6 | |
U.S. Pension Benefits | Cash, including money market funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 28.6 | 28.5 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 28.6 | 28.5 | |
U.S. Pension Benefits | U.S. equities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | U.S. equities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Non-U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 8.7 | 9.3 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 8.7 | 9.3 | |
U.S. Pension Benefits | Non-U.S. equities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Non-U.S. equities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | U.S. corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 56.4 | 58.7 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 56.4 | 58.7 | |
U.S. Pension Benefits | U.S. corporate bonds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | U.S. corporate bonds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Non-U.S. corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
U.S. Pension Benefits | Non-U.S. corporate bonds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Non-U.S. corporate bonds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 12.7 | 14 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 12.7 | 14 | |
U.S. Pension Benefits | U.S. government securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | U.S. government securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0.3 | 0.1 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0.3 | 0.1 | |
U.S. Pension Benefits | Non-U.S. government securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Non-U.S. government securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
U.S. Pension Benefits | Real estate | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Real estate | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Other securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 7.9 | 8.9 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 7.9 | 8.9 | |
U.S. Pension Benefits | Other securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
U.S. Pension Benefits | Other securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 108.3 | 111.2 | $ 119 |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 2.1 | 4.4 | |
Non-U.S. Pension Benefits | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 106.2 | 106.8 | |
Non-U.S. Pension Benefits | Cash, including money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 2.1 | 4.4 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | Cash, including money market funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 2.1 | 4.4 | |
Non-U.S. Pension Benefits | Cash, including money market funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 5.9 | 6.3 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | ||
Non-U.S. Pension Benefits | U.S. equities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | U.S. equities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 5.9 | 6.3 | |
Non-U.S. Pension Benefits | Non-U.S. equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 21.2 | 21.7 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | Non-U.S. equities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | Non-U.S. equities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 21.2 | 21.7 | |
Non-U.S. Pension Benefits | U.S. corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0.9 | 0.1 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | U.S. corporate bonds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | U.S. corporate bonds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0.9 | 0.1 | |
Non-U.S. Pension Benefits | Non-U.S. corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 17.7 | 20.3 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | Non-U.S. corporate bonds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | Non-U.S. corporate bonds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 17.7 | 20.3 | |
Non-U.S. Pension Benefits | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0.6 | 0 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | U.S. government securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | U.S. government securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0.6 | 0 | |
Non-U.S. Pension Benefits | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 29.3 | 29.8 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | Non-U.S. government securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | Non-U.S. government securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 29.3 | 29.8 | |
Non-U.S. Pension Benefits | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 2.8 | 3.4 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | Real estate | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | Real estate | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 2.8 | 3.4 | |
Non-U.S. Pension Benefits | Other securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 27.8 | 25.2 | |
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | 0 | 0 | |
Non-U.S. Pension Benefits | Other securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Non-U.S. Pension Benefits | Other securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | 27.8 | 25.2 | |
Accounting Standards Update 2015-07 [Member] | U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Alternative Investments, Fair Value Of Plan Assets | $ 119.5 | ||
Accounting Standards Update 2015-07 [Member] | U.S. Pension Benefits | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments measured at fair value | $ (119.5) |
Retirement Plans and Other Sens
Retirement Plans and Other Sensitivity and Future Payments (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | |||
Effect of one percentage point increase on service and interest cost components | $ 0 | ||
Effect of one percentage point decrease on service and interest cost components | 0 | ||
Effect of one percentage point increase on postretirement benefit obligation | 0.2 | ||
Effect of one percentage point decrease on postretirement benefit obligation | (0.2) | ||
U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and post-retirement company contributions | 1.4 | ||
Schedule of estimated future benefit payments | |||
2,017 | 11.6 | ||
2,018 | 11.4 | ||
2,019 | 11.3 | ||
2,020 | 11.4 | ||
2,021 | 11.2 | ||
Thereafter | 54.5 | ||
Non-U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | 6.7 | ||
Schedule of estimated future benefit payments | |||
2,017 | 8.4 | ||
2,018 | 6.6 | ||
2,019 | 6.9 | ||
2,020 | 7.1 | ||
2,021 | 7.6 | ||
Thereafter | 41.5 | ||
U.S. Other Benefits | |||
Schedule of estimated future benefit payments | |||
2,017 | 0.5 | ||
2,018 | 0.4 | ||
2,019 | 0.4 | ||
2,020 | 0.4 | ||
2,021 | 0.3 | ||
Thereafter | $ 1.4 | ||
Subsequent Event | |||
Schedule of estimated future benefit payments | |||
Health Care Cost Trend Rate Assumed for Next Fiscal Year | 6.50% | ||
Ultimate Health Care Cost Trend Rate | 4.50% | ||
Subsequent Event | U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated future employer contributions in next fiscal year | $ 1 | ||
Subsequent Event | Non-U.S. Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated future employer contributions in next fiscal year | $ 7 |
STOCKHOLDERS' EQUITY Capital St
STOCKHOLDERS' EQUITY Capital Stock Information (Details 1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 16, 2017 | Feb. 17, 2015 | Dec. 31, 2013 | |
Common stock, shares issued (in shares) | 129.6 | 128.8 | |||||
Common Stock, unissued shares (in shares) | 170.4 | ||||||
Shares of common stock in treasury (in shares) | 24.6 | 21.1 | |||||
Value of treasury stock on an average cost basis (in dollars) | $ (935.1) | $ (852.2) | |||||
Number of common shares held in rabbi trust (in shares) | 0.9 | 0.8 | |||||
Preferred stock, shares authorized (in shares) | 50 | ||||||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | ||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||
Stock Repurchase Program, Authorized Amount | $ 200 | ||||||
Treasury Stock, Shares, Acquired | 3.5 | 1.9 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 84.3 | $ 52.6 | $ 172.9 | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.07 | $ 0.06 | |||||
Common Stock | |||||||
Common stock, shares outstanding (in shares) | 105 | 107.7 | 105.4 | 109.9 | |||
Shares of common stock in treasury (in shares) | 24.6 | ||||||
Treasury Stock, Shares, Acquired | 3.6 | 2 | 5.4 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 0 | $ 0 | $ 0 | ||||
Stock Options and Restricted Stock | |||||||
Common Stock reserved for contingently issuable shares (in shares) | 3.5 | ||||||
All Company Stock Plans | |||||||
Number of common shares held in rabbi trust (in shares) | 0.9 | ||||||
Value of common shares held in rabbi trust (in dollars) | $ 19.7 | ||||||
Subsequent Event | |||||||
Stock Repurchase Program, Authorized Amount | $ 350 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.08 |
STOCKHOLDERS' EQUITY Share Base
STOCKHOLDERS' EQUITY Share Based Comp (Details 2) - USD ($) $ / shares in Units, $ in Thousands | Mar. 03, 2016 | Mar. 05, 2015 | Feb. 26, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2004 | May 31, 1999 |
Share-based compensation arrangements | ||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 84,300 | $ 52,600 | $ 172,900 | |||||
Treasury Stock, Shares, Acquired | 3,500,000 | 1,900,000 | ||||||
Assumptions used in valuation | ||||||||
Shares of common stock contributed to employee stock trust | 64,000 | |||||||
Weighted Average Grant Date Fair Value | ||||||||
Tax benefit related to stock-based compensation arrangements (in dollars) | $ 12,600 | $ 12,400 | $ 14,600 | |||||
Stock Option | ||||||||
Share-based compensation arrangements | ||||||||
Shares vesting period (in years) | 4 years | |||||||
Grant date average contractual term on options | 10 years | |||||||
Options granted during period (in shares) | 0 | 0 | 0 | |||||
Number of Options | ||||||||
Outstanding at the beginning of the period (in shares) | 141,223 | |||||||
Exercised (in shares) | 0 | |||||||
Canceled or expired (in shares) | (128,164) | |||||||
Outstanding at the end of the period (in shares) | 13,059 | 141,223 | ||||||
Exercisable at the end of the period (in shares) | 13,059 | |||||||
Vested at the end of the period (in shares) | 13,059 | |||||||
Weighted Average Exercise Price Per Share | ||||||||
Outstanding at the beginning of the period (in dollars per share) | $ 47.50 | |||||||
Exercised (in dollars per share) | 0 | |||||||
Canceled or expired (in dollars per share) | 45.71 | |||||||
Outstanding at the end of the period (in dollars per share) | 65.17 | $ 47.50 | ||||||
Exercisable at the end of the period (in dollars per share) | 65.17 | |||||||
Vested at the end of the period (in dollars per share) | $ 65.17 | |||||||
Weighted Average Remaining Contractual Life (in years) | ||||||||
Outstanding at the end of the period (in years) | 7 months 5 days | |||||||
Exercisable at the end of the period (in years) | 7 months 5 days | |||||||
Vested at the end of the period (in years) | 7 months 5 days | |||||||
Aggregate Intrinsic Value | ||||||||
Outstanding at the end of the period (in dollars) | $ 0 | |||||||
Exercisable at the end of the period (in dollars) | 0 | |||||||
Vested at the end of the period (in dollars) | 0 | |||||||
Restricted Stock Awards | ||||||||
Assumptions used in valuation | ||||||||
Unrecognized compensation costs (in dollars) | $ 40,600 | |||||||
Weighted average period of unrecognized compensation costs will be recognized (in years) | 1 year 9 months 24 days | |||||||
Total fair value of shares vested (in dollars) | $ 35,100 | $ 42,600 | $ 36,200 | |||||
Restricted Stock Awards | ||||||||
Nonvested at the beginning of the period (in shares) | 3,092,943 | |||||||
Granted (in shares) | 2,015,229 | |||||||
Vested (in shares) | (1,034,666) | |||||||
Canceled or expired (in shares) | (542,318) | |||||||
Nonvested at the end of the period (in shares) | 3,531,188 | 3,092,943 | ||||||
Weighted Average Grant Date Fair Value | ||||||||
Nonvested at the beginning of the period (in dollars per shares) | $ 30.29 | |||||||
Granted (in dollars per shares) | 23.95 | $ 26.83 | $ 44.23 | |||||
Vested (in dollars per shares) | 33.94 | |||||||
Cancelled or expired (in dollars per shares) | 29.61 | |||||||
Nonvested at the end of the period (in dollars per shares) | $ 25.42 | $ 30.29 | ||||||
Market Condition Award | ||||||||
Aggregate Intrinsic Value | ||||||||
Number of shares of restricted stock with fair value based on market condition, instead of market price (in shares) | 900,000 | |||||||
Assumptions used in valuation | ||||||||
Dividend yields (as a percent) | 0.91% | 0.46% | ||||||
Expected volatility (as a percent) | 37.00% | 56.84% | ||||||
Risk-free interest rate (as a percent) | 0.58% | 0.63% | ||||||
Expected life (in years) | 2 years | 3 years | ||||||
Weighted Average Grant Date Fair Value | ||||||||
Granted (in dollars per shares) | $ 25.60 | $ 53.17 | ||||||
Terex Corporation 2009 Omnibus Incentive Plan (the 2009 Plan) | ||||||||
Share-based compensation arrangements | ||||||||
Shares available for grant (in shares) | 2,500,000 | |||||||
Terex Corporation 2009 Omnibus Incentive Plan (the 2009 Plan) | Maximum | ||||||||
Share-based compensation arrangements | ||||||||
Shares authorized for issuance (in shares) | 8,000,000 | |||||||
Terex Corporation 2000 Incentive Plan (the 2000 Plan) | ||||||||
Share-based compensation arrangements | ||||||||
Shares authorized for issuance (in shares) | 12,000,000 | |||||||
Terex Corporation Long-term Incentive Plan (the 1996 Plan) | ||||||||
Share-based compensation arrangements | ||||||||
Shares authorized for issuance (in shares) | 4,000,000 | |||||||
All Company Stock Plans | Restricted Stock | ||||||||
Aggregate Intrinsic Value | ||||||||
Percentage of awards that vest over a four year period (as a percent) | 11.00% | |||||||
Percentage of awards that vest over a three year period (as a percent) | 89.00% | |||||||
Percentage of awards that vest evenly over three year period (as a percent) | 70.00% | |||||||
Percentage of awards that vest at end of three year period (as a percent) | 30.00% | |||||||
Percentage of awards subject to performance or market conditions (as a percent) | 38.00% | |||||||
Share-based Compensation Award, Tranche Three [Member] | Market Condition Award | ||||||||
Assumptions used in valuation | ||||||||
Dividend yields (as a percent) | 1.22% | |||||||
Expected volatility (as a percent) | 45.59% | |||||||
Risk-free interest rate (as a percent) | 0.97% | |||||||
Expected life (in years) | 3 years | |||||||
Weighted Average Grant Date Fair Value | ||||||||
Granted (in dollars per shares) | $ 29.24 | |||||||
Share-based Compensation Award, Tranche Two [Member] | Market Condition Award | ||||||||
Assumptions used in valuation | ||||||||
Dividend yields (as a percent) | 0.91% | |||||||
Expected volatility (as a percent) | 45.48% | |||||||
Risk-free interest rate (as a percent) | 0.98% | |||||||
Expected life (in years) | 3 years | |||||||
Weighted Average Grant Date Fair Value | ||||||||
Granted (in dollars per shares) | $ 28.10 | |||||||
Four year period | All Company Stock Plans | ||||||||
Share-based compensation arrangements | ||||||||
Shares vesting period (in years) | 4 years | |||||||
Three year period | All Company Stock Plans | ||||||||
Share-based compensation arrangements | ||||||||
Shares vesting period (in years) | 3 years | |||||||
Share repurchase program approved by Board of Directors [Member] | ||||||||
Share-based compensation arrangements | ||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 81,300 | $ 50,000 |
STOCKHOLDERS' EQUITY AOCI (Deta
STOCKHOLDERS' EQUITY AOCI (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | $ 1,912 | $ 2,039.1 | $ 2,214.8 |
Net other comprehensive income (loss) | (130.2) | (219.9) | (313.4) |
Total stockholders' equity, End of Period | 1,521.2 | 1,912 | 2,039.1 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | (492.7) | (245.5) | (7.9) |
Net other comprehensive income (loss) | (122.6) | (247.2) | (237.6) |
Total stockholders' equity, End of Period | (615.3) | (492.7) | (245.5) |
Derivative Hedging Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | 2.3 | (0.7) | 2.7 |
Net other comprehensive income (loss) | (4.7) | 3 | (3.4) |
Total stockholders' equity, End of Period | (2.4) | 2.3 | (0.7) |
Tax benefit included in accumulated other comprehensive income | 0.7 | ||
Debt and Equity Securities Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | (6.3) | 1.6 | 0 |
Net other comprehensive income (loss) | 6.9 | (7.9) | 1.6 |
Total stockholders' equity, End of Period | 0.6 | (6.3) | 1.6 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | (152.9) | (185.2) | (111.3) |
Net other comprehensive income (loss) | (9.4) | 32.3 | (73.9) |
Total stockholders' equity, End of Period | (162.3) | (152.9) | (185.2) |
Tax benefit included in accumulated other comprehensive income | 59.9 | ||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | (649.6) | (429.8) | (116.5) |
Net other comprehensive income (loss) | (129.8) | (219.8) | (313.3) |
Total stockholders' equity, End of Period | (779.4) | (649.6) | (429.8) |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | 0.7 | 0.8 | 0.9 |
Net other comprehensive income (loss) | (0.4) | (0.1) | (0.1) |
Total stockholders' equity, End of Period | 0.3 | 0.7 | 0.8 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | 0 | 0 | 0 |
Net other comprehensive income (loss) | 0 | 0 | 0 |
Total stockholders' equity, End of Period | 0 | 0 | 0 |
Debt and Equity Securities Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | 0 | 0 | 0 |
Net other comprehensive income (loss) | 0 | 0 | 0 |
Total stockholders' equity, End of Period | 0 | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | 0 | 0 | 0 |
Net other comprehensive income (loss) | 0 | 0 | 0 |
Total stockholders' equity, End of Period | 0 | 0 | 0 |
AOCI Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | 0.7 | 0.8 | 0.9 |
Net other comprehensive income (loss) | (0.4) | (0.1) | (0.1) |
Total stockholders' equity, End of Period | 0.3 | 0.7 | 0.8 |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | (492) | (244.7) | (7) |
Other comprehensive income before reclassifications | (121.1) | (247.3) | |
Amounts reclassified from AOCI | (1.9) | 0 | |
Net other comprehensive income (loss) | (123) | (247.3) | (237.7) |
Total stockholders' equity, End of Period | (615) | (492) | (244.7) |
Derivative Hedging Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | 2.3 | (0.7) | 2.7 |
Other comprehensive income before reclassifications | (5.7) | 9.2 | |
Amounts reclassified from AOCI | 1 | (6.2) | |
Net other comprehensive income (loss) | (4.7) | 3 | (3.4) |
Total stockholders' equity, End of Period | (2.4) | 2.3 | (0.7) |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | (6.3) | 1.6 | 0 |
Other comprehensive income before reclassifications | 3.9 | (7.9) | |
Amounts reclassified from AOCI | 3 | 0 | |
Net other comprehensive income (loss) | 6.9 | (7.9) | 1.6 |
Total stockholders' equity, End of Period | 0.6 | (6.3) | 1.6 |
Pension Liability Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | (152.9) | (185.2) | (111.3) |
Other comprehensive income before reclassifications | (16.1) | 22.7 | |
Amounts reclassified from AOCI | 6.7 | 9.6 | |
Net other comprehensive income (loss) | (9.4) | 32.3 | (73.9) |
Total stockholders' equity, End of Period | (162.3) | (152.9) | (185.2) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Total stockholders' equity, Beginning of Period | (648.9) | (429) | (115.6) |
Other comprehensive income before reclassifications | (139) | (223.3) | |
Amounts reclassified from AOCI | 8.8 | 3.4 | |
Net other comprehensive income (loss) | (130.2) | (219.9) | (313.4) |
Total stockholders' equity, End of Period | $ (779.1) | $ (648.9) | $ (429) |
LITIGATION AND CONTINGENCIES (D
LITIGATION AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies and Guarantee Obligations | ||
Guarantee Terms Maximum | 5 years | |
Fair value of all guarantees recorded in other current liabilities and retirement plans | $ 3.8 | $ 3.1 |
Credit Guarantee | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 42.3 | 39.8 |
Credit Guarantee | Cranes | Subsidiaries | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 16.3 | 19 |
Residual Value Guarantee Member [Domain] | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 7.1 | 3.7 |
Buyback Guarantee | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 3.5 | 6.9 |
Materials Handling and Port Solutions Sale | Credit Guarantee | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | 2 | 1.7 |
Materials Handling and Port Solutions Sale | Buyback Guarantee | ||
Loss Contingencies and Guarantee Obligations | ||
Guarantees, maximum exposure | $ 3.2 | $ 6.6 |
CONSOLIDATING FINANCIAL STATE87
CONSOLIDATING FINANCIAL STATEMENTS (Details) | Nov. 26, 2012 |
6% Senior Notes due May 15, 2021 | |
Debt Instrument | |
Interest rate of debt securities (as a percent) | 6.00% |
CONSOLIDATING FINANCIAL STATE88
CONSOLIDATING FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENT OF INCOME | |||
Net sales | $ 4,443.1 | $ 5,021.7 | $ 5,484 |
Cost of goods sold | (3,730.7) | (4,050.5) | (4,432.5) |
Gross profit | 712.4 | 971.2 | 1,051.5 |
Selling, general and administrative expenses | (684.2) | (647.5) | (651.5) |
Goodwill and Intangible Asset Impairment | (176) | ||
Income (loss) from operations | (147.8) | 323.7 | 400 |
Interest income | 4.3 | 3.8 | 6 |
Interest expense | (102) | (108.1) | (122.7) |
Income (loss) from subsidiaries | 0 | 0 | 0 |
Other income (expense) – net | (25.2) | (23.7) | (4.7) |
Income (loss) from continuing operations before income taxes | (270.7) | 195.7 | 278.6 |
(Provision for) benefit from income taxes | 77.4 | (67.5) | (26.6) |
Income (loss) from continuing operations | (193.3) | 128.2 | 252 |
Income (loss) from discontinued operations – net of tax | 14.3 | 17.4 | 8.9 |
Gain (loss) on disposition of discontinued operations – net of tax | 3.5 | 3.4 | 58.6 |
Net income (loss) | (175.5) | 149 | 319.5 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.3 | 0.2 | 1.5 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (0.9) | (3.3) | (2) |
Net income (loss) attributable to Terex Corporation | (176.1) | 145.9 | 319 |
Comprehensive income (loss), net of tax | (305.7) | (70.9) | 6.1 |
Comprehensive loss (income) attributable to noncontrolling interest | (0.2) | (3) | (0.4) |
Comprehensive income (loss) attributable to Terex Corporation | (305.9) | (73.9) | 5.7 |
Intercompany Eliminations | |||
CONSOLIDATED STATEMENT OF INCOME | |||
Net sales | (777.6) | (924.3) | (1,025.7) |
Cost of goods sold | 759.5 | 924.3 | 1,025.7 |
Gross profit | (18.1) | 0 | 0 |
Selling, general and administrative expenses | 18.1 | 0 | 0 |
Goodwill and Intangible Asset Impairment | 0 | ||
Income (loss) from operations | 0 | 0 | 0 |
Interest income | (163.2) | (170.4) | (201.4) |
Interest expense | 163.2 | 170.4 | 201.4 |
Income (loss) from subsidiaries | (47.6) | (244.9) | (355.3) |
Other income (expense) – net | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | (47.6) | (244.9) | (355.3) |
(Provision for) benefit from income taxes | 0 | 0 | 0 |
Income (loss) from continuing operations | (47.6) | (244.9) | (355.3) |
Income (loss) from discontinued operations – net of tax | (20.3) | (21.1) | (13.4) |
Gain (loss) on disposition of discontinued operations – net of tax | 0 | 0 | 0.6 |
Net income (loss) | (67.9) | (266) | (368.1) |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0 | 0 | 0 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 |
Net income (loss) attributable to Terex Corporation | (67.9) | (266) | (368.1) |
Comprehensive income (loss), net of tax | (82.7) | (107.8) | (165.3) |
Comprehensive loss (income) attributable to noncontrolling interest | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Terex Corporation | (82.7) | (107.8) | (165.3) |
Terex Corporation | |||
CONSOLIDATED STATEMENT OF INCOME | |||
Net sales | 5.9 | 10 | 42.5 |
Cost of goods sold | (5.1) | (8) | (39.2) |
Gross profit | 0.8 | 2 | 3.3 |
Selling, general and administrative expenses | (72) | (26.8) | (29.4) |
Goodwill and Intangible Asset Impairment | 0 | ||
Income (loss) from operations | (71.2) | (24.8) | (26.1) |
Interest income | 96.9 | 103.6 | 129.7 |
Interest expense | (149.2) | (155.2) | (170.5) |
Income (loss) from subsidiaries | 43.5 | 239.3 | 348.8 |
Other income (expense) – net | (56.9) | (67.7) | (36.1) |
Income (loss) from continuing operations before income taxes | (136.9) | 95.2 | 245.8 |
(Provision for) benefit from income taxes | (56.4) | 33 | 6.2 |
Income (loss) from continuing operations | (193.3) | 128.2 | 252 |
Income (loss) from discontinued operations – net of tax | 14.3 | 17.5 | 8.9 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.5 | 0.7 | 7.3 |
Net income (loss) | (178.5) | 146.4 | 268.2 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0 | 0 | 0 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 |
Net income (loss) attributable to Terex Corporation | (178.5) | 146.4 | 268.2 |
Comprehensive income (loss), net of tax | (305.9) | (73.9) | 5.7 |
Comprehensive loss (income) attributable to noncontrolling interest | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Terex Corporation | (305.9) | (73.9) | 5.7 |
Wholly-owned Guarantors | |||
CONSOLIDATED STATEMENT OF INCOME | |||
Net sales | 2,473.6 | 3,008 | 3,257 |
Cost of goods sold | (2,160.4) | (2,503.5) | (2,679.8) |
Gross profit | 313.2 | 504.5 | 577.2 |
Selling, general and administrative expenses | (240.4) | (260.5) | (237.4) |
Goodwill and Intangible Asset Impairment | (43.4) | ||
Income (loss) from operations | 29.4 | 244 | 339.8 |
Interest income | 68.7 | 68.7 | 73.8 |
Interest expense | (8.4) | (6.5) | (16.6) |
Income (loss) from subsidiaries | 8.2 | 8.6 | 9.4 |
Other income (expense) – net | 49.5 | 41.1 | 4.7 |
Income (loss) from continuing operations before income taxes | 147.4 | 355.9 | 411.1 |
(Provision for) benefit from income taxes | 43.5 | (79.5) | (24.3) |
Income (loss) from continuing operations | 190.9 | 276.4 | 386.8 |
Income (loss) from discontinued operations – net of tax | 6.4 | 2.4 | 5.4 |
Gain (loss) on disposition of discontinued operations – net of tax | 0 | 0 | 0 |
Net income (loss) | 197.3 | 278.8 | 392.2 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0 | 0 | 0 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 |
Net income (loss) attributable to Terex Corporation | 197.3 | 278.8 | 392.2 |
Comprehensive income (loss), net of tax | 195.8 | 277.1 | 388.8 |
Comprehensive loss (income) attributable to noncontrolling interest | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Terex Corporation | 195.8 | 277.1 | 388.8 |
Non-guarantor Subsidiaries | |||
CONSOLIDATED STATEMENT OF INCOME | |||
Net sales | 2,741.2 | 2,928 | 3,210.2 |
Cost of goods sold | (2,324.7) | (2,463.3) | (2,739.2) |
Gross profit | 416.5 | 464.7 | 471 |
Selling, general and administrative expenses | (389.9) | (360.2) | (384.7) |
Goodwill and Intangible Asset Impairment | (132.6) | ||
Income (loss) from operations | (106) | 104.5 | 86.3 |
Interest income | 1.9 | 1.9 | 3.9 |
Interest expense | (107.6) | (116.8) | (137) |
Income (loss) from subsidiaries | (4.1) | (3) | (2.9) |
Other income (expense) – net | (17.8) | 2.9 | 26.7 |
Income (loss) from continuing operations before income taxes | (233.6) | (10.5) | (23) |
(Provision for) benefit from income taxes | 90.3 | (21) | (8.5) |
Income (loss) from continuing operations | (143.3) | (31.5) | (31.5) |
Income (loss) from discontinued operations – net of tax | 13.9 | 18.6 | 8 |
Gain (loss) on disposition of discontinued operations – net of tax | 3 | 2.7 | 50.7 |
Net income (loss) | (126.4) | (10.2) | 27.2 |
Net loss (income) from continuing operations attributable to noncontrolling interest | 0.3 | 0.2 | 1.5 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (0.9) | (3.3) | (2) |
Net income (loss) attributable to Terex Corporation | (127) | (13.3) | 26.7 |
Comprehensive income (loss), net of tax | (112.9) | (166.3) | (223.1) |
Comprehensive loss (income) attributable to noncontrolling interest | (0.2) | (3) | (0.4) |
Comprehensive income (loss) attributable to Terex Corporation | $ (113.1) | $ (169.3) | $ (223.5) |
CONSOLIDATING FINANCIAL STATE89
CONSOLIDATING FINANCIAL STATEMENTS (Details 3) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||||
Cash and cash equivalents | $ 428.5 | $ 371.2 | $ 392.6 | |
Trade receivables - net | 512.5 | 703.3 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 853.8 | 1,063.6 | ||
Prepaid and other current assets | 172.8 | 252.5 | ||
Current assets held for sale | 732.9 | 749.6 | ||
Total current assets | 2,700.5 | 3,140.2 | ||
Property, plant and equipment – net | 304.6 | 371.9 | ||
Goodwill | 259.7 | 459.1 | 470.3 | |
Non-current intercompany receivables | 0 | 0 | ||
Investment in and advances to (from) subsidiaries | 27.2 | 45.3 | ||
Other assets | 543.5 | 439 | ||
Non-current assets held for sale | 1,171.3 | 1,160.5 | ||
Total assets | 5,006.8 | 5,616 | ||
Current liabilities | ||||
Notes payable and current portion of long-term debt | 13.8 | 66.4 | ||
Trade accounts payable | 522.7 | 560.7 | ||
Intercompany payables | 0 | 0 | ||
Accruals and other current liabilities | 416.7 | 385.5 | ||
Current liabilities held for sale | 453.8 | 446 | ||
Total current liabilities | 1,407 | 1,458.6 | ||
Long-term debt, less current portion | 1,562 | 1,729.8 | ||
Non-current intercompany payables | 0 | 0 | ||
Other non-current liabilities | 204.5 | 217.1 | ||
Non-current liabilities held for sale | 312.1 | 298.5 | ||
Total stockholders’ equity | 1,521.2 | 1,912 | $ 2,039.1 | $ 2,214.8 |
Total liabilities, noncontrolling interest and stockholders’ equity | 5,006.8 | 5,616 | ||
Intercompany Eliminations | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Trade receivables - net | 0 | 0 | ||
Intercompany receivables | (155.3) | (177.5) | ||
Inventories | 0 | 0 | ||
Prepaid and other current assets | 0 | 0 | ||
Current assets held for sale | 0 | 0 | ||
Total current assets | (155.3) | (177.5) | ||
Property, plant and equipment – net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Non-current intercompany receivables | (4,188.1) | (4,213.1) | ||
Investment in and advances to (from) subsidiaries | (4,278.6) | (4,154.5) | ||
Other assets | 0 | 0 | ||
Non-current assets held for sale | 0 | 0 | ||
Total assets | (8,622) | (8,545.1) | ||
Current liabilities | ||||
Notes payable and current portion of long-term debt | 0 | 0 | ||
Trade accounts payable | 0 | 0 | ||
Intercompany payables | (155.3) | (177.5) | ||
Accruals and other current liabilities | 0 | 0 | ||
Current liabilities held for sale | 0 | 0 | ||
Total current liabilities | (155.3) | (177.5) | ||
Long-term debt, less current portion | 0 | 0 | ||
Non-current intercompany payables | (4,188.1) | (4,213.1) | ||
Other non-current liabilities | 0 | 0 | ||
Non-current liabilities held for sale | 0 | 0 | ||
Total stockholders’ equity | (4,278.6) | (4,154.5) | ||
Total liabilities, noncontrolling interest and stockholders’ equity | (8,622) | (8,545.1) | ||
Terex Corporation | ||||
Current assets | ||||
Cash and cash equivalents | 50.7 | 91.7 | ||
Trade receivables - net | 5.2 | 5.2 | ||
Intercompany receivables | 28.7 | 57.5 | ||
Inventories | 0.5 | 0 | ||
Prepaid and other current assets | 55.3 | 108.6 | ||
Current assets held for sale | 0 | 0 | ||
Total current assets | 140.4 | 263 | ||
Property, plant and equipment – net | 32.7 | 57.9 | ||
Goodwill | 0 | 0 | ||
Non-current intercompany receivables | 1,257.8 | 1,353.8 | ||
Investment in and advances to (from) subsidiaries | 4,120.8 | 4,010.2 | ||
Other assets | 109.8 | 29.2 | ||
Non-current assets held for sale | 0.1 | 0 | ||
Total assets | 5,661.6 | 5,714.1 | ||
Current liabilities | ||||
Notes payable and current portion of long-term debt | 0 | 0 | ||
Trade accounts payable | 40.3 | 21.4 | ||
Intercompany payables | 4 | 3.1 | ||
Accruals and other current liabilities | 62.3 | 59.8 | ||
Current liabilities held for sale | 0 | 0 | ||
Total current liabilities | 106.6 | 84.3 | ||
Long-term debt, less current portion | 1,140.4 | 1,138.1 | ||
Non-current intercompany payables | 2,884.3 | 2,562.3 | ||
Other non-current liabilities | 45.6 | 52 | ||
Non-current liabilities held for sale | 0 | 0 | ||
Total stockholders’ equity | 1,484.7 | 1,877.4 | ||
Total liabilities, noncontrolling interest and stockholders’ equity | 5,661.6 | 5,714.1 | ||
Wholly-owned Guarantors | ||||
Current assets | ||||
Cash and cash equivalents | 0.4 | 0.2 | ||
Trade receivables - net | 167 | 241.7 | ||
Intercompany receivables | 37.8 | 55.3 | ||
Inventories | 310.6 | 424.2 | ||
Prepaid and other current assets | 71.1 | 33.9 | ||
Current assets held for sale | 15.1 | 17.1 | ||
Total current assets | 602 | 772.4 | ||
Property, plant and equipment – net | 148.4 | 145.9 | ||
Goodwill | 120.7 | 162.2 | ||
Non-current intercompany receivables | 2,917.2 | 2,786.4 | ||
Investment in and advances to (from) subsidiaries | 90.9 | 94.4 | ||
Other assets | 175.8 | 104.3 | ||
Non-current assets held for sale | 119.7 | 29.5 | ||
Total assets | 4,174.7 | 4,095.1 | ||
Current liabilities | ||||
Notes payable and current portion of long-term debt | 0.2 | 0.7 | ||
Trade accounts payable | 197.6 | 222.8 | ||
Intercompany payables | 42.3 | 56.6 | ||
Accruals and other current liabilities | 113.3 | 113.5 | ||
Current liabilities held for sale | 13.3 | 17.6 | ||
Total current liabilities | 366.7 | 411.2 | ||
Long-term debt, less current portion | 0 | 1.2 | ||
Non-current intercompany payables | 0 | 0 | ||
Other non-current liabilities | 34.8 | 35.3 | ||
Non-current liabilities held for sale | 0 | 0 | ||
Total stockholders’ equity | 3,773.2 | 3,647.4 | ||
Total liabilities, noncontrolling interest and stockholders’ equity | 4,174.7 | 4,095.1 | ||
Non-guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 377.4 | 279.3 | ||
Trade receivables - net | 340.3 | 456.4 | ||
Intercompany receivables | 88.8 | 64.7 | ||
Inventories | 542.7 | 639.4 | ||
Prepaid and other current assets | 46.4 | 110 | ||
Current assets held for sale | 717.8 | 732.5 | ||
Total current assets | 2,113.4 | 2,282.3 | ||
Property, plant and equipment – net | 123.5 | 168.1 | ||
Goodwill | 139 | 296.9 | ||
Non-current intercompany receivables | 13.1 | 72.9 | ||
Investment in and advances to (from) subsidiaries | 94.1 | 95.2 | ||
Other assets | 257.9 | 305.5 | ||
Non-current assets held for sale | 1,051.5 | 1,131 | ||
Total assets | 3,792.5 | 4,351.9 | ||
Current liabilities | ||||
Notes payable and current portion of long-term debt | 13.6 | 65.7 | ||
Trade accounts payable | 284.8 | 316.5 | ||
Intercompany payables | 109 | 117.8 | ||
Accruals and other current liabilities | 241.1 | 212.2 | ||
Current liabilities held for sale | 440.5 | 428.4 | ||
Total current liabilities | 1,089 | 1,140.6 | ||
Long-term debt, less current portion | 421.6 | 590.5 | ||
Non-current intercompany payables | 1,303.8 | 1,650.8 | ||
Other non-current liabilities | 124.1 | 129.8 | ||
Non-current liabilities held for sale | 312.1 | 298.5 | ||
Total stockholders’ equity | 541.9 | 541.7 | ||
Total liabilities, noncontrolling interest and stockholders’ equity | $ 3,792.5 | $ 4,351.9 |
CONSOLIDATING FINANCIAL STATE90
CONSOLIDATING FINANCIAL STATEMENTS (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Cash Flows | |||
Net cash provided by (used in) operating activities | $ 367 | $ 212.9 | $ 410.7 |
Cash flows from investing activities | |||
Capital expenditures | (73) | (103.8) | (81.5) |
Acquisitions, net of cash acquired | (7) | (71.2) | (7.4) |
Other investments | 0 | 0 | (20) |
Proceeds (payments) from disposition of discontinued operations | 3.5 | (0.2) | 162.2 |
Proceeds from sale of assets | 67.2 | 3.1 | 43.3 |
Intercompany investing activities (1) | 0 | 0 | 0 |
Other investing activities, net | (2.5) | (0.6) | (1.6) |
Net cash provided by (used in) investing activities | (11.8) | (172.7) | 95 |
Cash flows from financing activities | |||
Repayments of debt | (1,286.3) | (1,397.8) | (1,801.8) |
Proceeds from issuance of debt | 1,097.7 | 1,462.8 | 1,684.2 |
Proceeds from (purchase of) noncontrolling interest, net | 2.9 | (1.2) | (78.6) |
Intercompany financing activities (1) | 0 | 0 | 0 |
Share repurchases | (82.7) | (50.8) | (171.2) |
Dividends paid | (30) | (25.8) | (21.8) |
Other financing activities, net | (1.7) | (1.6) | (7.5) |
Net cash provided by (used in) financing activities | (300.1) | (14.4) | (396.7) |
Effect of exchange rate changes on cash and cash equivalents | (19.7) | (37.5) | (38.9) |
Net Increase (Decrease) in Cash and Cash Equivalents | 35.4 | (11.7) | 70.1 |
Cash and Cash Equivalents at beginning of period | 466.5 | 478.2 | 408.1 |
Cash and Cash Equivalents at end of period | 501.9 | 466.5 | 478.2 |
Intercompany Eliminations | |||
Condensed Cash Flows | |||
Net cash provided by (used in) operating activities | 5.7 | (202.1) | (413) |
Cash flows from investing activities | |||
Capital expenditures | 0 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Other investments | 0 | ||
Proceeds (payments) from disposition of discontinued operations | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | 0 | 0 |
Intercompany investing activities (1) | (206.1) | (481.7) | (363.5) |
Other investing activities, net | (29.1) | (34.5) | 0 |
Net cash provided by (used in) investing activities | (235.2) | (516.2) | (363.5) |
Cash flows from financing activities | |||
Repayments of debt | 0 | 0 | 0 |
Proceeds from issuance of debt | 0 | 0 | 0 |
Proceeds from (purchase of) noncontrolling interest, net | 0 | 0 | 0 |
Intercompany financing activities (1) | 229.5 | 718.3 | 776.5 |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Other financing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 229.5 | 718.3 | 776.5 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | 0 |
Cash and Cash Equivalents at beginning of period | 0 | 0 | 0 |
Cash and Cash Equivalents at end of period | 0 | 0 | 0 |
Terex Corporation | |||
Condensed Cash Flows | |||
Net cash provided by (used in) operating activities | (253) | (510) | (113.4) |
Cash flows from investing activities | |||
Capital expenditures | (2.4) | (1.6) | (4.4) |
Acquisitions, net of cash acquired | 0 | 0 | 0 |
Other investments | (20) | ||
Proceeds (payments) from disposition of discontinued operations | 0 | (3.4) | 31.3 |
Proceeds from sale of assets | 0.1 | (1) | 25 |
Intercompany investing activities (1) | 327 | 713.3 | 363.5 |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 324.7 | 707.3 | 395.4 |
Cash flows from financing activities | |||
Repayments of debt | (1,013.2) | (1,317.4) | (1,018.8) |
Proceeds from issuance of debt | 1,013.4 | 1,188.7 | 1,011 |
Proceeds from (purchase of) noncontrolling interest, net | 0 | 0 | 0 |
Intercompany financing activities (1) | 0 | 0 | 0 |
Share repurchases | (82.7) | (50.8) | (171.2) |
Dividends paid | (30) | (25.8) | (21.8) |
Other financing activities, net | 0 | 0.6 | 1.5 |
Net cash provided by (used in) financing activities | (112.5) | (204.7) | (199.3) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | (40.8) | (7.4) | 82.7 |
Cash and Cash Equivalents at beginning of period | 91.6 | 99 | 16.3 |
Cash and Cash Equivalents at end of period | 50.8 | 91.6 | 99 |
Wholly-owned Guarantors | |||
Condensed Cash Flows | |||
Net cash provided by (used in) operating activities | 420.7 | 647.6 | 901.9 |
Cash flows from investing activities | |||
Capital expenditures | (32) | (41.9) | (31.8) |
Acquisitions, net of cash acquired | 0 | (52.1) | 0 |
Other investments | 0 | ||
Proceeds (payments) from disposition of discontinued operations | 0 | 0 | 0 |
Proceeds from sale of assets | 5.4 | 0.9 | 12.1 |
Intercompany investing activities (1) | (97.5) | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (124.1) | (93.1) | (19.7) |
Cash flows from financing activities | |||
Repayments of debt | (1.7) | (7.8) | (3.2) |
Proceeds from issuance of debt | 0 | 0 | 7.2 |
Proceeds from (purchase of) noncontrolling interest, net | 0 | 0 | 0 |
Intercompany financing activities (1) | (297.1) | (545.5) | (888.2) |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Other financing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (298.8) | (553.3) | (884.2) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | (2.2) | 1.2 | (2) |
Cash and Cash Equivalents at beginning of period | 3.1 | 1.9 | 3.9 |
Cash and Cash Equivalents at end of period | 0.9 | 3.1 | 1.9 |
Non-guarantor Subsidiaries | |||
Condensed Cash Flows | |||
Net cash provided by (used in) operating activities | 193.6 | 277.4 | 35.2 |
Cash flows from investing activities | |||
Capital expenditures | (38.6) | (60.3) | (45.3) |
Acquisitions, net of cash acquired | (7) | (19.1) | (7.4) |
Other investments | 0 | ||
Proceeds (payments) from disposition of discontinued operations | 3.5 | 3.2 | 130.9 |
Proceeds from sale of assets | 61.7 | 3.2 | 6.2 |
Intercompany investing activities (1) | (23.4) | (231.6) | 0 |
Other investing activities, net | 26.6 | 33.9 | (1.6) |
Net cash provided by (used in) investing activities | 22.8 | (270.7) | 82.8 |
Cash flows from financing activities | |||
Repayments of debt | (271.4) | (72.6) | (779.8) |
Proceeds from issuance of debt | 84.3 | 274.1 | 666 |
Proceeds from (purchase of) noncontrolling interest, net | 2.9 | (1.2) | (78.6) |
Intercompany financing activities (1) | 67.6 | (172.8) | 111.7 |
Share repurchases | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Other financing activities, net | (1.7) | (2.2) | (9) |
Net cash provided by (used in) financing activities | (118.3) | 25.3 | (89.7) |
Effect of exchange rate changes on cash and cash equivalents | (19.7) | (37.5) | (38.9) |
Net Increase (Decrease) in Cash and Cash Equivalents | 78.4 | (5.5) | (10.6) |
Cash and Cash Equivalents at beginning of period | 371.8 | 377.3 | 387.9 |
Cash and Cash Equivalents at end of period | $ 450.2 | $ 371.8 | $ 377.3 |
SCHEDULE II - VALUATION AND Q91
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Balance Beginning of Year | $ 339.7 | $ 368.8 | $ 307.1 |
Charges to Earnings | (9.7) | 5.1 | 57 |
Other | (32.3) | (14.8) | 33.9 |
Deductions | (24.1) | (19.4) | (29.2) |
Valuation Allowances and Reserves, Balance End of Year | 273.6 | 339.7 | 368.8 |
Allowance for Doubtful Accounts, Current | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Balance Beginning of Year | 20.4 | 18.3 | 38.4 |
Charges to Earnings | 5.6 | 4.3 | 0 |
Other | (5.4) | 1.7 | (5.7) |
Deductions | (4.1) | (3.9) | (14.4) |
Valuation Allowances and Reserves, Balance End of Year | 16.5 | 20.4 | 18.3 |
Allowance for Doubtful Accounts, Noncurrent | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Balance Beginning of Year | 27.4 | 28.6 | 29.1 |
Charges to Earnings | (1.5) | 3.2 | 1.5 |
Other | (0.4) | (2.1) | (1.8) |
Deductions | (0.3) | (2.3) | (0.2) |
Valuation Allowances and Reserves, Balance End of Year | 25.2 | 27.4 | 28.6 |
Reserve for inventory | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Balance Beginning of Year | 76.8 | 77.9 | 86.7 |
Charges to Earnings | 37 | 18.2 | 17.6 |
Other | (10.8) | (6.1) | (11.8) |
Deductions | (19.7) | (13.2) | (14.6) |
Valuation Allowances and Reserves, Balance End of Year | 83.3 | 76.8 | 77.9 |
Valuation allowances for deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Balance Beginning of Year | 215.1 | 244 | 152.9 |
Charges to Earnings | (50.8) | (20.6) | 37.9 |
Other | (15.7) | (8.3) | 53.2 |
Deductions | 0 | 0 | 0 |
Valuation Allowances and Reserves, Balance End of Year | $ 148.6 | $ 215.1 | $ 244 |