Cover
Cover - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Apr. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-10702 | |
Entity Registrant Name | Terex Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-1531521 | |
Entity Address, Address Line One | 45 Glover Ave, 4th Floor | |
Entity Address, City or Town | Norwalk | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06850 | |
City Area Code | 203 | |
Local Phone Number | 222-7170 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Trading Symbol | TEX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 69.8 | |
Entity Central Index Key | 0000097216 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 864.2 | $ 833.6 |
Cost of goods sold | (688.8) | (696.9) |
Gross profit | 175.4 | 136.7 |
Selling, general and administrative expenses | (113.9) | (143.8) |
Income (loss) from operations | 61.5 | (7.1) |
Other income (expense) | ||
Interest income | 0.7 | 0.9 |
Interest expense | (15.3) | (17.7) |
Loss on early extinguishment of debt | (2.1) | 0 |
Other income (expense) – net | 2.6 | (1.6) |
Income (loss) from continuing operations before income taxes | 47.4 | (25.5) |
(Provision for) benefit from income taxes | (7.7) | 0.8 |
Income (loss) from continuing operations | 39.7 | (24.7) |
Income (loss) from discontinued operations – net of tax | 0 | (0.2) |
Gain (loss) on disposition of discontinued operations – net of tax | 0.4 | 0 |
Net income (loss) | $ 40.1 | $ (24.9) |
Basic earnings (loss) per share: | ||
Income (loss) from continuing operations | $ 0.57 | $ (0.35) |
Income (loss) from discontinued operations – net of tax | 0 | 0 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.01 | 0 |
Net income (loss) | 0.58 | (0.35) |
Diluted earnings (loss) per share: | ||
Income (loss) from continuing operations | 0.56 | (0.35) |
Income (loss) from discontinued operations – net of tax | 0 | 0 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.01 | 0 |
Net income (loss) | $ 0.57 | $ (0.35) |
Weighted average number of shares outstanding in per share calculation | ||
Basic (in shares) | 69.5 | 70.5 |
Diluted (in shares) | 70.8 | 70.5 |
Comprehensive income (loss) | $ 33 | $ (81.1) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 572.9 | $ 665 |
Trade receivables (net of allowance of $10.1 and $9.5 at March 31, 2021 and December 31, 2020, respectively) | 488.3 | 381.2 |
Inventories | 658.8 | 610.4 |
Prepaid and other current assets | 181.9 | 222 |
Total current assets | 1,901.9 | 1,878.6 |
Non-current assets | ||
Property, plant and equipment – net | 396.8 | 406.6 |
Goodwill | 275.9 | 275.4 |
Intangible assets – net | 7.9 | 8.3 |
Other assets | 383 | 462.9 |
Total assets | 2,965.5 | 3,031.8 |
Current liabilities | ||
Current portion of long-term debt | 5.7 | 7.6 |
Trade accounts payable | 474 | 369.9 |
Other current liabilities | 358.3 | 345.8 |
Total current liabilities | 838 | 723.3 |
Non-current liabilities | ||
Long-term debt, less current portion | 973.5 | 1,166.2 |
Other non-current liabilities | 207.9 | 220.8 |
Total liabilities | 2,019.4 | 2,110.3 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock, $0.01 par value – authorized 300.0 shares; issued 83.4 and 82.9 shares at March 31, 2021 and December 31, 2020, respectively | 0.9 | 0.9 |
Additional paid-in capital | 835.7 | 837.9 |
Retained earnings | 781.7 | 750.3 |
Accumulated other comprehensive income (loss) | (215.5) | (208.4) |
Less cost of shares of common stock in treasury – 14.2 and 14.3 shares at March 31, 2021 and December 31, 2020, respectively | (456.7) | (459.2) |
Total stockholders’ equity | 946.1 | 921.5 |
Total liabilities and stockholders’ equity | $ 2,965.5 | $ 3,031.8 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Trade receivables, allowance (in dollars) | $ 10.1 | $ 9.5 |
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common authorized (in shares) | 300,000,000 | 300,000,000 |
Common issued (in shares) | 83,400,000 | 82,900,000 |
Treasury stock (in shares) | 14,200,000 | 14,300,000 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury |
Total stockholders' equity, Beginning of Period at Dec. 31, 2019 | $ 932.3 | $ 0.8 | $ 824.4 | $ 771.4 | $ (257.5) | $ (406.8) |
Shares oustanding, Beginning of Period (in shares) at Dec. 31, 2019 | 70,400,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (24.9) | (24.9) | ||||
Other Comprehensive Income (Loss) – net of tax | (56.2) | (56.2) | ||||
Issuance of Common Stock (in shares) | 600,000 | |||||
Issuance of Common Stock | 26.5 | $ 0.1 | 26.4 | |||
Compensation under Stock-based Plans - net (in shares) | 100,000 | |||||
Compensation under Stock-based Plans - net | (26.3) | (29.5) | 3.2 | |||
Dividends | (8.4) | 0.2 | (8.6) | |||
Acquisition of Treasury Stock | $ (54.9) | (54.9) | ||||
Acquisition of Treasury Stock (in shares) | (2,500,000) | (2,500,000) | ||||
Other | $ (1.9) | (1.9) | ||||
Shares outstanding, End of Period (in shares) at Mar. 31, 2020 | 68,600,000 | |||||
Total stockholders' equity, End of Period at Mar. 31, 2020 | 786.2 | $ 0.9 | 821.5 | 736 | (313.7) | (458.5) |
Total stockholders' equity, Beginning of Period at Dec. 31, 2020 | 921.5 | $ 0.9 | 837.9 | 750.3 | (208.4) | (459.2) |
Shares oustanding, Beginning of Period (in shares) at Dec. 31, 2020 | 68,600,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 40.1 | 40.1 | ||||
Other Comprehensive Income (Loss) – net of tax | (7.1) | (7.1) | ||||
Issuance of Common Stock (in shares) | 500,000 | |||||
Issuance of Common Stock | 11.4 | $ 0 | 11.4 | |||
Compensation under Stock-based Plans - net (in shares) | 100,000 | |||||
Compensation under Stock-based Plans - net | (11) | (13.8) | 2.8 | |||
Dividends | (8.3) | 0.2 | (8.5) | |||
Acquisition of Treasury Stock | (0.3) | (0.3) | ||||
Other | (0.2) | (0.2) | ||||
Shares outstanding, End of Period (in shares) at Mar. 31, 2021 | 69,200,000 | |||||
Total stockholders' equity, End of Period at Mar. 31, 2021 | $ 946.1 | $ 0.9 | $ 835.7 | $ 781.7 | $ (215.5) | $ (456.7) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities | ||
Net income (loss) | $ 40.1 | $ (24.9) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 12.8 | 11.8 |
(Gain) loss on disposition of discontinued operations | (0.4) | 0 |
Deferred taxes | (0.1) | 4.7 |
Impairments | 2.3 | 0.1 |
(Gain) loss on sale of assets | (0.6) | 0 |
Loss on early extinguishment of debt | 2.1 | 0 |
Stock-based compensation expense | 9.9 | 7.3 |
Inventory and other non-cash charges | 0.6 | 6.1 |
Changes in operating assets and liabilities (net of effects of acquisitions and divestitures): | ||
Trade receivables | (114.1) | (16.3) |
Inventories | (60.6) | 2.1 |
Trade accounts payable | 111.3 | (35.5) |
Other assets and liabilities | 131.4 | (39.6) |
Foreign exchange and other operating activities, net | 3.4 | (4.5) |
Net cash provided by (used in) operating activities | 138.1 | (88.7) |
Investing Activities | ||
Capital expenditures | (7.3) | (25.2) |
Proceeds from sale of capital assets | 1.2 | 0.5 |
Proceeds (payments) from disposition of discontinued operations | 0 | 4.5 |
Net cash provided by (used in) investing activities | (6.1) | (20.2) |
Financing Activities | ||
Repayments of debt | (197.5) | (1.5) |
Proceeds from issuance of debt | 0 | 170 |
Share repurchases | (0.2) | (54.8) |
Dividends paid | (8.3) | (8.4) |
Other financing activities, net | (8.9) | (7) |
Net cash provided by (used in) financing activities | (214.9) | 98.3 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (9.4) | (14.5) |
Net Increase (Decrease) in Cash and Cash Equivalents | (92.3) | (25.1) |
Cash and Cash Equivalents at Beginning of Period | 670.1 | 540.1 |
Cash and Cash Equivalents at End of Period | $ 577.8 | $ 515 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation and Principles of Consolidation. The accompanying unaudited Condensed Consolidated Financial Statements of Terex Corporation and subsidiaries as of March 31, 2021 and for the three months ended March 31, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP to be included in full-year financial statements. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2020 has been derived from audited consolidated financial statements as of that date, but does not include all disclosures required by U.S. GAAP. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for year ended December 31, 2020. The Condensed Consolidated Financial Statements include accounts of Terex Corporation, its majority-owned subsidiaries and other controlled subsidiaries (“Terex” or the “Company”). The Company consolidates all majority-owned and controlled subsidiaries, applies equity method of accounting for investments in which the Company is able to exercise significant influence and applies the cost method for all other investments. All intercompany balances, transactions and profits have been eliminated. Certain prior period amounts have been reclassified to conform with the 2021 presentation. In the opinion of management, adjustments considered necessary for the fair statement of these interim financial statements have been made. Except as otherwise disclosed, all such adjustments consist only of those of a normal recurring nature. Operating results for the three months ended March 31, 2021 are not necessarily indicative of results that may be expected for the year ending December 31, 2021. Cash and cash equivalents include $4.6 million and $5.0 million at March 31, 2021 and December 31, 2020, 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 amounts of cash and cash equivalents presented in the Condensed Consolidated Statement of Cash Flows (in millions): March 31, 2021 December 31, 2020 Cash and cash equivalents: Cash and cash equivalents - continuing operations $ 572.9 $ 665.0 Cash and cash equivalents - held for sale (1) 4.9 5.1 Total cash and cash equivalents $ 577.8 $ 670.1 (1) Amounts relate to the Company’s utility hot lines tools business located in South America. Recently Issued Accounting Standards Accounting Standards Implemented in 2021 In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application of Topic 740. The Company adopted ASU 2019-12 on January 1, 2021. Adoption did not have a material effect on the Company’s consolidated financial statements. Accounting Standards to be Implemented In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU were effective upon issuance and may be applied through December 31, 2022. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. Accounts Receivable and Allowance for Doubtful Accounts. Trade accounts receivable are recorded at invoiced amount and do not bear interest. Allowance for doubtful accounts is the Company’s estimate of current expected credit losses on its existing accounts receivable and determined based on historical customer assessments, current financial conditions and reasonable and supportable forecasts. Account balances are charged off against the allowance when the Company determines the receivable will not be recovered. There can be no assurance that the Company’s estimate of accounts receivable collection will be indicative of future results. The Company has off-balance sheet customer credit exposure related to guarantees provided to financial institutions as disclosed in Note K – “Litigation and Contingencies”. The following table summarizes changes in the consolidated allowance for doubtful accounts (in millions): Balance as of December 31, 2020 $ 9.5 Provision for credit losses 1.2 Other adjustments (0.6) Balance as of March 31, 2021 $ 10.1 Finance Receivables. The Company’s net finance receivable balances include both sales-type leases and commercial loans. The Company had $23.2 million and $116.0 million of net finance receivables at March 31, 2021 and December 31, 2020, respectively. The allowance for credit losses on finance receivables was $10.5 million and $13.8 million at March 31, 2021 and December 31, 2020, respectively. In February 2021, the Company transferred finance receivables of $89.7 million to a U.S. regional bank, which qualified for sales treatment under ASC 860. The Company received $99.4 million cash proceeds from the sale and recognized a net gain of $5.6 million. Guarantees. The Company issues guarantees to financial institutions related to financing of equipment purchases by customers. The expectation of losses or non-performance is assessed based on consideration of historical customer reviews, current financial conditions, reasonable and supportable forecasts, equipment collateral value and other factors. Reserves are recorded for expected loss over the contractual period of risk exposure. Accrued Warranties . The Company records accruals for potential warranty claims based on its claim experience. The Company’s products are typically sold with a standard warranty covering defects that arise during a fixed period. Each business provides a warranty specific to products it offers. The specific warranty offered by a business is a function of customer expectations and competitive forces. Warranty length is generally a fixed period of time, a fixed number of operating hours or both. A liability for estimated warranty claims is accrued at the time of sale. The current portion of the product warranty liability is included in Other current liabilities and the non-current portion is included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheet. The liability is established using historical warranty claims experience for each product sold. Historical claims experience may be adjusted for known design improvements or for the impact of unusual product quality issues. Assumptions are updated for known events that may affect the potential warranty liability. The following table summarizes changes in the consolidated product warranty liability (in millions): Balance as of December 31, 2020 $ 52.9 Accruals for warranties issued during the period 11.2 Changes in estimates (0.2) Settlements during the period (11.3) Foreign exchange effect/other (0.6) Balance as of March 31, 2021 $ 52.0 Fair Value Measurements. Assets and liabilities measured at fair value on a recurring basis under the provisions of Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement and Disclosure” (“ASC 820”) include interest rate caps, commodity swaps, cross currency swaps and foreign exchange contracts, discussed in Note H – “Derivative Financial Instruments” and debt discussed in Note I – “Long-term Obligations”. These instruments are valued using 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. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Terex is a global manufacturer of aerial work platforms and materials processing machinery. The Company designs, builds and supports products used in construction, maintenance, manufacturing, energy, minerals and materials management applications. Terex’s products are manufactured in North and South America, Europe, Australia and Asia and sold worldwide. The Company engages with customers through all stages of the product life cycle, from initial specification and financing to parts and service support. The Company identifies its operating segments according to how business activities are managed and evaluated, and has identified three operating segments: Aerials, Utilities and Materials Processing (“MP”). As Aerials and Utilities operating segments share similar economic characteristics, these operating segments are aggregated into one operating segment, Aerial Work Platforms (“AWP”). The Company operates in two reportable segments: (i) AWP and (ii) MP. AWP designs, manufactures, services and markets aerial work platform equipment, utility equipment and telehandlers as well as their related components and replacement parts. Customers use these products to construct and maintain industrial, commercial, institutional and residential buildings and facilities, for construction and maintenance of utility and telecommunication lines, tree trimming, certain construction and foundation drilling applications, and for other commercial operations, as well as in a wide range of infrastructure projects. MP designs, manufactures, services and markets materials processing and specialty equipment, including crushers, washing systems, screens, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and their related components and replacement parts. Customers use these products in construction, infrastructure and recycling projects, in various quarrying and mining applications, as well as in landscaping and biomass production industries, material handling applications, maintenance applications to lift equipment or material, moving materials and equipment on rugged or uneven terrain, lifting construction material and placing material at point of use. The Company assists customers in their rental, leasing and acquisition of its products through Terex Financial Services (“TFS”). TFS uses its equipment financing experience to facilitate financial products and services to assist customers in the acquisition of the Company’s equipment. TFS is included in Corporate and Other. Corporate and Other also includes eliminations among the two reportable segments, as well as general and corporate items. Business segment information is presented below (in millions): Three Months Ended 2021 2020 Net sales AWP $ 476.7 $ 511.7 MP 378.2 315.6 Corporate and Other / Eliminations 9.3 6.3 Total $ 864.2 $ 833.6 Income (loss) from operations AWP $ 26.6 $ (5.9) MP 49.1 25.0 Corporate and Other / Eliminations (14.2) (26.2) Total $ 61.5 $ (7.1) Sales between segments are generally priced to recover costs plus a reasonable markup for profit, which is eliminated in consolidation. March 31, December 31, Identifiable assets AWP (1) $ 1,700.9 $ 1,541.0 MP 1,597.9 1,596.3 Corporate and Other / Eliminations (2) (339.2) (111.8) Assets held for sale 5.9 6.3 Total $ 2,965.5 $ 3,031.8 (1) Increase primarily due to higher trade receivable and inventory balances. (2) Change primarily due to lower cash and finance receivable balances. Geographic net sales information is presented below (in millions): Three Months Ended Three Months Ended AWP MP Corporate and Other / Eliminations Total AWP MP Corporate and Other / Eliminations Total Net sales by region North America $ 296.0 $ 146.4 $ 10.2 $ 452.6 $ 342.5 $ 114.4 $ 14.4 $ 471.3 Western Europe 94.3 118.3 0.1 212.7 88.8 105.7 0.1 194.6 Asia-Pacific 70.3 82.3 0.2 152.8 51.1 59.0 0.2 110.3 Rest of World (1) 16.1 31.2 (1.2) 46.1 29.3 36.5 (8.4) 57.4 Total (2) $ 476.7 $ 378.2 $ 9.3 $ 864.2 $ 511.7 $ 315.6 $ 6.3 $ 833.6 (1) Includes intercompany sales and eliminations. (2) Total sales include $415.7 million and $431.1 million for the three months ended March 31, 2021 and 2020, respectively, attributable to the U.S., the Company’s country of domicile. The Company attributes sales to unaffiliated customers in different geographical areas based on the location of the customer. Product type net sales information is presented below (in millions): Three Months Ended Three Months Ended AWP MP Corporate and Other / Eliminations Total AWP MP Corporate and Other / Eliminations Total Net sales by product type Aerial Work Platforms $ 356.8 $ — $ 0.4 $ 357.2 $ 346.7 $ — $ 0.4 $ 347.1 Materials Processing Equipment — 228.6 — 228.6 — 188.1 — 188.1 Specialty Equipment — 149.1 0.7 149.8 — 126.3 0.3 126.6 Other (1) 119.9 0.5 8.2 128.6 165.0 1.2 5.6 171.8 Total $ 476.7 $ 378.2 $ 9.3 $ 864.2 $ 511.7 $ 315.6 $ 6.3 $ 833.6 (1) Includes other product types, intercompany sales and eliminations. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESDuring the three months ended March 31, 2021, the Company recognized income tax expense of $7.7 million on income of $47.4 million, an effective tax rate of 16.2%, as compared to income tax benefit of $0.8 million on loss of $25.5 million, an effective tax rate of 3.1%, for the three months ended March 31, 2020. The higher effective tax rate for the three months ended March 31, 2021 when compared with the three months ended March 31, 2020 is primarily due to U.S. tax on foreign income partially offset by geographic mix and the 2020 benefit of the Coronavirus Aid, Relief, and Economic Security Act. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE (in millions, except per share data) Three Months Ended 2021 2020 Income (loss) from continuing operations $ 39.7 $ (24.7) Income (loss) from discontinued operations – net of tax — (0.2) Gain (loss) on disposition of discontinued operations – net of tax 0.4 — Net income (loss) $ 40.1 $ (24.9) Basic shares: Weighted average shares outstanding 69.5 70.5 Earnings (loss) per share – basic: Income (loss) from continuing operations $ 0.57 $ (0.35) Income (loss) from discontinued operations – net of tax — — Gain (loss) on disposition of discontinued operations – net of tax 0.01 — Net income (loss) $ 0.58 $ (0.35) Diluted shares: Weighted average shares outstanding – basic 69.5 70.5 Effect of dilutive securities: Restricted stock awards 1.3 — Diluted weighted average shares outstanding 70.8 70.5 Earnings (loss) per share – diluted: Income (loss) from continuing operations $ 0.56 $ (0.35) Income (loss) from discontinued operations – net of tax — — Gain (loss) on disposition of discontinued operations – net of tax 0.01 — Net income (loss) $ 0.57 $ (0.35) Non-vested restricted stock awards granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share using the treasury stock method. Weighted average restricted stock awards of approximately 0.1 million and 1.6 million were outstanding during the three months ended March 31, 2021 and 2020, respectively, but were not included in the computation of diluted shares as the effect would be anti-dilutive or performance targets were not expected to be achieved for awards contingent upon performance. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following (in millions): March 31, December 31, Finished equipment $ 235.7 $ 195.8 Replacement parts 152.9 157.0 Work-in-process 64.0 57.2 Raw materials and supplies 206.2 200.4 Inventories $ 658.8 $ 610.4 Reserves for lower of cost or net realizable value and excess and obsolete inventory were $59.3 million and $61.8 million at March 31, 2021 and December 31, 2020, respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment – net consist of the following (in millions): March 31, December 31, Property $ 43.2 $ 43.6 Plant 249.3 250.1 Equipment 389.4 390.2 Leasehold improvements 49.7 49.9 Construction in progress 30.3 31.1 Property, plant and equipment – gross 761.9 764.9 Less: Accumulated depreciation (365.1) (358.3) Property, plant and equipment – net $ 396.8 $ 406.6 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL AND INTANGIBLE ASSETS, NET An analysis of changes in the Company’s goodwill by business segment is as follows (in millions): AWP MP Total Balance at December 31, 2020, gross $ 140.6 $ 196.6 $ 337.2 Accumulated impairment (38.6) (23.2) (61.8) Balance at December 31, 2020, net 102.0 173.4 275.4 Foreign exchange effect and other (0.5) 1.0 0.5 Balance at March 31, 2021, gross 140.1 197.6 337.7 Accumulated impairment (38.6) (23.2) (61.8) Balance at March 31, 2021, net $ 101.5 $ 174.4 $ 275.9 Intangible assets, net were comprised of the following (in millions): March 31, 2021 December 31, 2020 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 $ 9.8 $ (9.2) $ 0.6 $ 10.1 $ (9.6) $ 0.5 Customer Relationships 22 26.0 (24.3) 1.7 26.1 (24.1) 2.0 Land Use Rights 80 4.4 (0.8) 3.6 4.4 (0.7) 3.7 Other 8 25.4 (23.4) 2.0 25.5 (23.4) 2.1 Total definite-lived intangible assets $ 65.6 $ (57.7) $ 7.9 $ 66.1 $ (57.8) $ 8.3 Three Months Ended (in millions) 2021 2020 Aggregate Amortization Expense $ 0.4 $ 0.4 Estimated aggregate intangible asset amortization expense (in millions) for each of the next five years is as follows: 2021 $ 1.7 2022 1.3 2023 0.7 2024 0.5 2025 0.4 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company operates internationally, with manufacturing and sales facilities in various locations around the world. In the normal course of business, the Company uses cash flow derivatives to manage exposures. For a derivative to qualify for hedge accounting treatment at inception and throughout the hedge period, the Company formally documents the nature and relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions, and 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. The Company does not engage in trading or other speculative use of financial instruments. The Company records all derivative contracts at fair value on a recurring basis. The Company’s derivative financial instruments are categorized under the ASC 820 hierarchy; see Note A - “Basis of Presentation” for an explanation of the hierarchy. Interest Rate Caps and Commodity Swaps Derivatives designated as cash flow hedging instruments include interest rate caps and commodity swaps with outstanding notional amounts of $300.0 million and $26.1 million, respectively, at March 31, 2021. Commodity swaps outstanding at March 31, 2021 mature on or before August 31, 2022. The outstanding notional amount of interest rate caps and commodity swaps was $300.0 million and $26.0 million, respectively, at December 31, 2020. The Company uses interest rate caps to mitigate its exposure to changes in interest rates related to variable rate debt and commodity swaps to mitigate price risk for hot rolled coil steel. Fair values of interest rate caps are based on the present value of future cash payments and receipts. Fair values of commodity swaps are based on observable market data for similar assets and liabilities. Changes in the fair value of interest rate caps and commodity swaps are deferred in Accumulated other comprehensive income (loss) (“AOCI”). Gains or losses on interest rate caps are reclassified to Interest expense in the Condensed Consolidated Statement of Comprehensive Income (Loss) when the underlying hedged transactions occur. Gains or losses on commodity swaps are reclassified to Cost of goods sold (“COGS”) in the Condensed Consolidated Statement of Comprehensive Income (Loss) when the hedged transaction affects earnings. Cross Currency Swaps Derivatives designated as net investment hedging instruments include cross currency swaps with outstanding notional amounts of $93.8 million and $97.7 million at March 31, 2021 and December 31, 2020, respectively. The Company uses these cross currency swaps to mitigate its exposure to changes in foreign currency exchange rates related to a net investment in a Euro-denominated functional currency subsidiary. Fair values of cross currency swaps are based on the present value of future cash payments and receipts. Changes in the fair value of cross currency swaps are deferred in AOCI. Gains or losses on cross currency swaps are reclassified to Selling, general and administrative expenses in the Condensed Consolidated Statement of Comprehensive Income (Loss) when the net investment is liquidated. Foreign Exchange Contracts The Company enters into foreign exchange contracts to manage variability of future cash flows associated with changing currency exchange rates. Primary currencies to which the Company is exposed are the Euro, British Pound and Australian Dollar. Foreign currency exchange contracts, whether designated or not designated as cash flow hedges, are used to mitigate exposure to changes in foreign currency exchange rates on recognized assets and liabilities. Fair values of these contracts are derived using quoted forward foreign exchange prices to interpolate values of outstanding trades at the reporting date based on their maturities. Foreign exchange contracts outstanding at March 31, 2021 mature during the second quarter of 2021. At March 31, 2021 and December 31, 2020, the Company had $0.8 million and $7.8 million notional amount, respectively, of foreign exchange contracts outstanding that were designated as cash flow hedge contracts. For effective hedging instruments, unrealized gains and losses associated with foreign exchange contracts are deferred as a component of AOCI until the underlying hedged transactions settle and are reclassified to COGS in the Company’s Condensed Consolidated Statement of Comprehensive Income (Loss). The Company had $90.3 million and $54.2 million notional amount of foreign exchange contracts outstanding that were not designated as hedging instruments at March 31, 2021 and December 31, 2020, respectively. The majority of gains and losses recognized from foreign exchange contracts not designated as hedging instruments are offset by changes in the underlying hedged items, resulting in no material net impact on earnings. Changes in the fair value of these derivative financial instruments are recognized as gains or losses in COGS and Other income (expense) – net in the Condensed Consolidated Statement of Comprehensive Income (Loss). The following table provides the location and fair value amounts of derivative instruments designated and not designated as hedging instruments that are reported in the Condensed Consolidated Balance Sheet (in millions): March 31, December 31, Instrument (1) Balance Sheet Account Derivatives designated as hedges Derivatives not designated as hedges Derivatives designated as hedges Derivatives not designated as hedges Foreign exchange contracts Other current assets $ — $ 0.1 $ — $ — Commodity swaps Other current assets 11.0 — 7.2 — Commodity swaps Other non-current assets 1.4 — 0.3 — Interest rate caps Other non-current assets 1.2 — — — Foreign exchange contracts Other current liabilities — (0.3) — — Cross currency swaps - net investment hedge Other current liabilities (0.9) — (2.0) — Interest rate caps Other current liabilities (1.2) — (1.2) — Cross currency swaps - net investment hedge Other non-current liabilities (5.4) — (8.2) — Interest rate caps Other non-current liabilities — — (2.6) — Net derivative asset (liability) $ 6.1 $ (0.2) $ (6.5) $ — (1) Categorized as Level 2 under the ASC 820 Fair Value Hierarchy. The following tables provide the effect of derivative instruments that are designated as hedges in AOCI (in millions): Gain (Loss) Recognized on Derivatives in OCI, net of tax Gain (Loss) Reclassified from AOCI into Income (Loss) Three Months Ended March 31, Three Months Ended March 31, Instrument 2021 2020 Income Statement Account 2021 2020 Foreign exchange contracts $ — $ (1.1) Cost of goods sold $ — $ (1.4) Commodity swaps 7.9 (1.4) Cost of goods sold (0.3) (1.1) Cross currency swaps - net investment hedge 2.9 (0.2) Selling, general and administrative expenses — — Interest rate caps 3.0 (1.5) Interest expense (0.3) — Total $ 13.8 $ (4.2) Total $ (0.6) $ (2.5) The following tables provide the effect of derivative instruments that are designated as hedges in the Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions): Classification and amount of Gain (Loss) Recognized in Income (Loss) Cost of goods sold Interest expense Three Months Ended March 31, 2021 2020 2021 2020 Income Statement Accounts in which effects of cash flow hedges are recorded $ (688.8) (696.9) (15.3) (17.7) Gain (loss) reclassified from AOCI into Income (loss): Foreign exchange contracts — (1.4) — — Commodity swaps (0.3) (1.1) — — Interest rate caps — — (0.3) — Amount excluded from effectiveness testing recognized in Income (loss) based on amortization approach: Cross currency swaps - net investment hedge — — 0.2 — Total $ (0.3) $ (2.5) $ (0.1) $ — Derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. The following table provides the effect of non-designated derivatives outstanding at the end of the period in the Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions): Gain (Loss) Recognized in Income (Loss) Instrument Income Statement Account Three Months Ended Three Months Ended Foreign exchange contracts Cost of goods sold $ (0.2) $ (0.4) Foreign exchange contracts Other income (expense) – net (0.1) (0.1) Total $ (0.3) $ (0.5) In the Condensed Consolidated Statement of Comprehensive Income (Loss), the Company records hedging activity related to interest rate caps, commodity swaps, cross currency swaps, foreign exchange contracts, and the debt conversion feature in the accounts for which the hedged items are recorded. On the Condensed Consolidated Statement of Cash Flows, the Company presents cash flows from hedging activities in the same manner as it records the underlying item being hedged. Counterparties to the Company’s derivative financial instruments are major financial institutions and commodity trading companies with credit ratings of investment grade or better and no collateral is required. There are no significant risk concentrations. Management continues to monitor counterparty risk and believes the risk of incurring losses on derivative contracts related to credit risk is unlikely and any losses would be immaterial. See Note L - “Stockholders’ Equity” for unrealized net gains (losses), net of tax, included in AOCI. Within unrealized net gains (losses) included in AOCI as of March 31, 2021, it is estimated that $9.9 million of gains are expected to be reclassified into earnings in the next twelve months. |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM OBLIGATIONS | LONG-TERM OBLIGATIONS 2017 Credit Agreement On January 31, 2017, the Company entered into a credit agreement (as amended, the “2017 Credit Agreement”) with the lenders and issuing banks party thereto and Credit Suisse AG, Cayman Islands Branch (“CSAG”), as administrative agent and collateral agent. The 2017 Credit Agreement included (i) a $600 million revolving line of credit (the “Revolver”) and (ii) senior secured term loans totaling $600 million that will mature on January 31, 2024 (the “Term Loans”). On April 23, 2020, the Company entered into Loan Modification Agreement and Amendment No. 4 (“Amendment No. 4”) to the 2017 Credit Agreement which extended the term of the Revolver to expire on January 31, 2023, waived or amended certain financial covenants during 2020 and 2021, increased the interest rate on the Revolver by 25 basis points until December 31, 2021 and contained other provisions, such as prohibiting share repurchases and dividends, in 2020. The $400 million senior secured term loan (the “Original Term Loan”) under the 2017 Credit Agreement bears interest at a rate of LIBOR plus 2.00% with a 0.75% LIBOR floor. During the first quarter of 2021, the Company prepaid the $200 million term loan (the “2019 Term Loan”) under the 2017 Credit Agreement prior to its maturity date to reduce the Company’s outstanding debt and lower its leverage. The Company recorded a loss on early extinguishment of debt related to prepayment of $2.1 million for accelerated amortization of debt acquisition costs and original issue discount. The 2019 Term Loan bore interest at a rate of LIBOR plus 2.75% with a 0.75% LIBOR floor. In April 2021, the Company entered into an amendment and restatement agreement dated as of April 1, 2021 (the “Amendment and Restatement Agreement”) to the 2017 Credit Agreement. In connection with the Amendment and Restatement Agreement, the 2017 Credit Agreement has been amended and restated as of April 1, 2021 (the “Amended and Restated Credit Agreement” and collectively with the Amendment and Restatement Agreement, the “Amended Agreement”). The principal changes in the Amended Agreement are: (i) extension of the term of the Revolver to expire on April 1, 2026 (previously January 31, 2023), which maturity will spring forward to November 1, 2023 if the Original Term Loan outstanding under the Amended and Restated Credit Agreement is not repaid or its maturity date is not extended, (ii) reinstatement of financial covenants that were waived in 2020 by Amendment No. 4, (iii) decrease in the interest rate on the drawn Revolver by 25 basis points and (iv) certain other technical changes, including additional language regarding the potential cessation of LIBOR as a benchmark rate. The Company expects to record a loss on early extinguishment of debt related to the execution of the Amended Agreement of approximately $2 million in the second quarter of 2021. Unlimited incremental commitments 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 $150 million through March 31, 2021 under the 2017 Credit Agreement and $300 million thereafter under the Amended Agreement as long as the Company satisfies the maximum permitted level of the senior secured leverage as defined in these agreements. The 2017 Credit Agreement required the Company to comply with a number of covenants which limit, in certain circumstances, the Company’s ability to take a variety of actions, including but not limited to: incur indebtedness; create or maintain liens on its property or assets; make investments, loans and advances; repurchase shares of its common stock; engage in acquisitions, mergers, consolidations and asset sales; redeem debt; and pay dividends and distributions. If the Company’s borrowings under the Revolver were greater than 30% of the total revolving credit commitments, the 2017 Credit Agreement required the Company to comply with certain financial tests, as defined in the 2017 Credit Agreement. Compliance with minimum required levels of the interest coverage ratio was waived at March 31, 2021 by Amendment No. 4. Minimum required levels of the interest coverage ratio will be 2.5 to 1.0 at June 30, 2021 and thereafter under the Amended Agreement. Maximum permitted level of the senior secured leverage ratio was 3.75 to 1.0 at March 31, 2021 under Amendment No. 4 and will be 2.75 to 1.0 at June 30, 2021 and thereafter under the Amended Agreement. The 2017 Credit Agreement also contained customary default provisions. The Company was in compliance with all covenants contained in the 2017 Credit Agreement as of March 31, 2021. As of March 31, 2021 and December 31, 2020, the Company had $383.1 million and $579.9 million, net of discount, respectively, in Term Loans outstanding under the 2017 Credit Agreement. The weighted average interest rate on the Term Loans at March 31, 2021 and December 31, 2020 was 2.75% and 3.00%, respectively. The Company had no revolving credit amounts outstanding as of March 31, 2021 and December 31, 2020. The Company issues letters of credit that generally serve as collateral for certain liabilities included in the Condensed Consolidated Balance Sheet and guaranteeing the Company’s performance under contracts. Letters of credit can be issued under two facilities provided in the 2017 Credit Agreement and via bilateral arrangements outside the 2017 Credit Agreement. The 2017 Credit Agreement incorporated secured facilities for issuance of letters of credit up to $400 million (the “$400 Million Facility”). Letters of credit issued under the $400 Million Facility decrease availability under the Revolver. The 2017 Credit Agreement also permitted the Company to have additional secured facilities for the issuance of letters of credit up to $300 million (the “$300 Million Facility”). Letters of credit issued under the $300 Million Facility did not decrease availability under the Revolver. The Company also has bilateral arrangements to issue letters of credit with various other financial institutions (the “Bilateral Arrangements”). The Bilateral Arrangements were not secured under the 2017 Credit Agreement and did not decrease availability under the Revolver. Letters of credit outstanding (in millions): March 31, 2021 December 31, 2020 $400 Million Facility $ — $ — $300 Million Facility 59.7 35.3 Bilateral Arrangements 55.5 47.2 Total $ 115.2 $ 82.5 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 lenders, granting security and guarantees to the lenders for amounts borrowed under the 2017 Credit Agreement. Pursuant to the Guarantee and Collateral Agreement, Terex 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 substantially all of the Company’s domestic assets. 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 the Company’s Material Handling and Port Solutions business, was used: (i) to complete a tender offer for up to $550.0 million of the Company’s Senior Notes due 2021 (“6% Notes”), (ii) to redeem and discharge such portion of the 6% Notes not purchased in the tender offer, (iii) to fund a $300.0 million partial redemption of the 6% Notes, (iv) to fund repayment of all $300.0 million aggregate principal amount outstanding of the Company’s 6-1/2% Senior Notes due 2021 on or before April 3, 2017, (v) to pay related premiums, fees, discounts and expenses, and (vi) for general corporate purposes. The 5-5/8% Notes were jointly and severally guaranteed by certain of the Company’s domestic subsidiaries. On March 15, 2021, the Company delivered a notice for the conditional redemption of all of its outstanding 5-5/8% Notes. On April 5, 2021, the Company redeemed the 5-5/8% Notes in full for $622.9 million, including redemption premiums of $16.9 million and accrued but unpaid interest of $6.0 million. The Company expects to record a loss on early extinguishment of debt related to the redemption of the 5-5/8% Notes of approximately $23 million in the second quarter of 2021. 5% Senior Notes In Apri1 2021, the Company sold and issued $600.0 million aggregate principal amount of Senior Notes Due 2029 (“5% Notes”) at par in a private offering. The proceeds from the 5% Notes, together with cash on hand, was used: (i) to fund redemption and discharge of the 5-5/8% Notes and (ii) to pay related premiums, fees, discounts and expenses. The 5% Notes are jointly and severally guaranteed by certain of the Company’s domestic subsidiaries. Fair Value of Debt Based on indicative price quotations from financial institutions multiplied by the amount recorded on the Company’s Condensed Consolidated Balance Sheet (“Book Value”), the Company estimates the fair values of its debt set forth below as of March 31, 2021, as follows (in millions, except for quotes): Book Value Quote Fair Value 5-5/8% Notes $ 600.0 $ 1.02875 $ 617.3 2017 Credit Agreement Original Term Loan (net of discount) $ 383.1 $ 0.99708 $ 382.0 The fair value of debt reported in the table above is based on adjusted price quotations on the debt instruments in an active market and therefore is categorized under Level 2 of the ASC 820 hierarchy. See Note A – “Basis of Presentation” for an explanation of ASC 820 hierarchy. The Company believes that the carrying value of its other borrowings, including amounts outstanding, if any, for the revolving credit line under the 2017 Credit Agreement, approximate fair market value based on maturities for debt of similar terms. Fair value of these other borrowings are categorized under Level 2 of the ASC 820 hierarchy. |
RETIREMENT PLANS AND OTHER BENE
RETIREMENT PLANS AND OTHER BENEFITS | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS AND OTHER BENEFITS | RETIREMENT PLANS AND OTHER BENEFITS The Company maintains defined benefit plans in France, Germany, India, Switzerland and the United Kingdom for some of its subsidiaries, as well as a nonqualified Supplemental Executive Retirement Plan (“U.S. SERP”) in the U.S. In Italy and Mexico, there are mandatory termination indemnity plans providing a benefit that is payable upon termination of employment in substantially all cases of termination. The Company has several non-pension post-retirement benefit programs, including health and life insurance benefits to certain former salaried and hourly employees. Information regarding the Company’s plans, including the U.S. SERP, is as follows (in millions): Three Months Ended 2021 2020 U.S. Pension Non-U.S. Pension Other U.S. Pension Non-U.S. Pension Other Components of net periodic cost: Service cost $ — $ 0.2 $ — $ — $ 0.3 $ — Interest cost 0.3 0.6 — 0.3 0.7 — Expected return on plan assets — (1.4) — — (1.3) — Amortization of actuarial (gain) loss 0.1 0.6 — — 0.5 — Net periodic cost $ 0.4 $ — $ — $ 0.3 $ 0.2 $ — Components of Net periodic cost other than the Service cost component are included in Other income (expense) - Net in the Condensed Consolidated Statement of Comprehensive Income (Loss). The Service cost component is included in the same line item or items as other compensation costs arising from services rendered by pertinent employees during the period. |
LITIGATION AND CONTINGENCIES
LITIGATION AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
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. Terex Latin América Equipamentos Ltda ICMS Proceedings Terex Latin America Equipamentos Ltda (“TLA”) imports Terex products into Brazil through the state of Espirito Santo to its facility in Sao Paulo. For the 2004 through March 2009 period TLA used a third-party trading company, SAB, as an agent to process the importation of Terex products. TLA properly paid the Espirito Santo ICMS tax (Brazilian state value-added tax) to SAB for payment to Espirito Santo, which would produce an ICMS credit to be used against imposition of Sao Paolo ICMS tax. SAB went into bankruptcy and may not have actually remitted to Espirito Santo the ICMS tax amounts paid to it by TLA. The Brazilian state of Sao Paulo challenged the credit against Sao Paolo ICMS that TLA claimed and assessed unpaid ICMS tax, penalties and related interest in the amount of approximately BRL 102 million ($18 million). TLA challenged the claim of Sao Paulo and learned in October 2019 that the Sao Paulo claim has survived the administrative tribunal process. TLA anticipates that it will receive notice for an amount due from Sao Paulo and expects to protest the Sao Paulo claim in litigation. While the Company believes the position of the state of Sao Paulo is without merit and continues to vigorously oppose it, no assurance can be given as to the final resolution of the ICMS litigation or that TLA will not ultimately be required to pay ICMS and interest to the state of Sao Paulo. Other The Company is involved in various other legal proceedings which have arisen in the normal course of its operations. The Company has recorded provisions for estimated losses in circumstances where a loss is probable and the amount or range of possible amounts of the loss is estimable. Credit Guarantees 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. These may require the Company to: (i) pay-off the customer’s obligations, (ii) assume the customer’s payments or (iii) pay a predetermined percentage of the customer’s outstanding obligation. The current amount of the maximum potential liability under these credit guarantees cannot be reasonably estimated due to limited availability of the unique facts and circumstances of each arrangement, such as customer delinquency and whether changes have been made to the structure of the contractual obligation between the funder and customer. For credit guarantees outstanding as of March 31, 2021 and December 31, 2020, the maximum exposure determined at inception was $195.3 million and $143.8 million, respectively. 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 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. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Changes in Accumulated Other Comprehensive Income (Loss) The table below presents changes in AOCI by component for the three months ended March 31, 2021 and 2020. All amounts are net of tax (in millions). Three Months Ended Three Months Ended CTA Derivative Hedging Adj. Debt & Equity Securities Adj. Pension Liability Adj. Total CTA Derivative Hedging Adj. Debt & Equity Securities Adj. Pension Liability Adj. Total Beginning balance $ (145.2) $ (6.0) $ 1.2 $ (58.4) $ (208.4) $ (208.2) $ (0.8) $ 2.6 $ (51.1) $ (257.5) Other comprehensive income (loss) before reclassifications (20.2) 13.4 (1.1) (0.2) (8.1) (54.8) (6.3) (0.2) 2.6 (58.7) Amounts reclassified from AOCI — 0.4 — 0.6 1.0 — 2.1 — 0.4 2.5 Net other comprehensive income (loss) (20.2) 13.8 (1.1) 0.4 (7.1) (54.8) (4.2) (0.2) 3.0 (56.2) Ending balance $ (165.4) $ 7.8 $ 0.1 $ (58.0) $ (215.5) $ (263.0) $ (5.0) $ 2.4 $ (48.1) $ (313.7) Stock-Based Compensation During the three months ended March 31, 2021, the Company awarded 0.6 million shares of restricted stock to its employees with a weighted average grant date fair value of $44.56 per share. Approximately 57% of these awards are time-based and vest ratably on each of the first three anniversary dates. Approximately 28% cliff vest at the end of a three-year period and are subject to performance targets that may or may not be met and for which the performance period has not yet been completed. Approximately 15% cliff vest and are based on performance targets containing a market condition determined over a three-year period. The Company used the Monte Carlo method to determine grant date fair value of $54.92 per share for the awards with a market condition granted on March 4, 2021. The Monte Carlo method is a statistical simulation technique used to provide the grant date fair value of an award. The following table presents the weighted-average assumptions used in the valuation: Grant date March 4, 2021 Dividend yields 1.12 % Expected volatility 53.03 % Risk free interest rate 0.29 % Expected life (in years) 3 Share Repurchases and Dividends In July 2018, Terex’s Board of Directors authorized the Company to repurchase up to $300 million of the Company’s outstanding shares of common stock. During the three months ended March 31, 2021, the Company did not repurchase shares under these programs. During the three months ended March 31, 2020, the Company repurchased 2.5 million shares for $54.6 million under these programs. Terex’s Board of Directors declared a dividend of $0.12 per share in the first quarter of 2021 and 2020, which was paid to the Company’s shareholders. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Implemented in 2021 In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application of Topic 740. The Company adopted ASU 2019-12 on January 1, 2021. Adoption did not have a material effect on the Company’s consolidated financial statements. Accounting Standards to be Implemented In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848)”, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU were effective upon issuance and may be applied through December 31, 2022. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. Trade accounts receivable are recorded at invoiced amount and do not bear interest. Allowance for doubtful accounts is the Company’s estimate of current expected credit losses on its existing accounts receivable and determined based on historical customer assessments, current financial conditions and reasonable and supportable forecasts. Account balances are charged off against the allowance when the Company determines the receivable will not be recovered. There can be no assurance that the Company’s estimate of accounts receivable collection will be indicative of future results. The Company has off-balance sheet customer credit exposure related to guarantees provided to financial institutions as disclosed in Note K – “Litigation and Contingencies”. |
Financing Receivables | Finance Receivables. The Company’s net finance receivable balances include both sales-type leases and commercial loans. The Company had $23.2 million and $116.0 million of net finance receivables at March 31, 2021 and December 31, 2020, respectively. The allowance for credit losses on finance receivables was $10.5 million and $13.8 million at March 31, 2021 and December 31, 2020, respectively. In February 2021, the Company transferred finance receivables of $89.7 million to a U.S. regional bank, which qualified for sales treatment under ASC 860. The Company received $99.4 million cash proceeds from the sale and recognized a net gain of $5.6 million. |
Guarantees | Guarantees. The Company issues guarantees to financial institutions related to financing of equipment purchases by customers. The expectation of losses or non-performance is assessed based on consideration of historical customer reviews, current financial conditions, reasonable and supportable forecasts, equipment collateral value and other factors. Reserves are recorded for expected loss over the contractual period of risk exposure. |
Accrued Warranties | Accrued Warranties . The Company records accruals for potential warranty claims based on its claim experience. The Company’s products are typically sold with a standard warranty covering defects that arise during a fixed period. Each business provides a warranty specific to products it offers. The specific warranty offered by a business is a function of customer expectations and competitive forces. Warranty length is generally a fixed period of time, a fixed number of operating hours or both. A liability for estimated warranty claims is accrued at the time of sale. The current portion of the product warranty liability is included in Other current liabilities and the non-current portion is included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheet. The liability is established using historical warranty claims experience for each product sold. Historical claims experience may be adjusted for known design improvements or for the impact of unusual product quality issues. Assumptions are updated for known events that may affect the potential warranty liability. |
Fair Value Measurements | Fair Value Measurements. Assets and liabilities measured at fair value on a recurring basis under the provisions of Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement and Disclosure” (“ASC 820”) include interest rate caps, commodity swaps, cross currency swaps and foreign exchange contracts, discussed in Note H – “Derivative Financial Instruments” and debt discussed in Note I – “Long-term Obligations”. These instruments are valued using 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) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides amounts of cash and cash equivalents presented in the Condensed Consolidated Statement of Cash Flows (in millions): March 31, 2021 December 31, 2020 Cash and cash equivalents: Cash and cash equivalents - continuing operations $ 572.9 $ 665.0 Cash and cash equivalents - held for sale (1) 4.9 5.1 Total cash and cash equivalents $ 577.8 $ 670.1 (1) Amounts relate to the Company’s utility hot lines tools business located in South America. |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes changes in the consolidated allowance for doubtful accounts (in millions): Balance as of December 31, 2020 $ 9.5 Provision for credit losses 1.2 Other adjustments (0.6) Balance as of March 31, 2021 $ 10.1 |
Schedule of Product Warranty Liability | The following table summarizes changes in the consolidated product warranty liability (in millions): Balance as of December 31, 2020 $ 52.9 Accruals for warranties issued during the period 11.2 Changes in estimates (0.2) Settlements during the period (11.3) Foreign exchange effect/other (0.6) Balance as of March 31, 2021 $ 52.0 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | (in millions, except per share data) Three Months Ended 2021 2020 Income (loss) from continuing operations $ 39.7 $ (24.7) Income (loss) from discontinued operations – net of tax — (0.2) Gain (loss) on disposition of discontinued operations – net of tax 0.4 — Net income (loss) $ 40.1 $ (24.9) Basic shares: Weighted average shares outstanding 69.5 70.5 Earnings (loss) per share – basic: Income (loss) from continuing operations $ 0.57 $ (0.35) Income (loss) from discontinued operations – net of tax — — Gain (loss) on disposition of discontinued operations – net of tax 0.01 — Net income (loss) $ 0.58 $ (0.35) Diluted shares: Weighted average shares outstanding – basic 69.5 70.5 Effect of dilutive securities: Restricted stock awards 1.3 — Diluted weighted average shares outstanding 70.8 70.5 Earnings (loss) per share – diluted: Income (loss) from continuing operations $ 0.56 $ (0.35) Income (loss) from discontinued operations – net of tax — — Gain (loss) on disposition of discontinued operations – net of tax 0.01 — Net income (loss) $ 0.57 $ (0.35) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following (in millions): March 31, December 31, Finished equipment $ 235.7 $ 195.8 Replacement parts 152.9 157.0 Work-in-process 64.0 57.2 Raw materials and supplies 206.2 200.4 Inventories $ 658.8 $ 610.4 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment – net consist of the following (in millions): March 31, December 31, Property $ 43.2 $ 43.6 Plant 249.3 250.1 Equipment 389.4 390.2 Leasehold improvements 49.7 49.9 Construction in progress 30.3 31.1 Property, plant and equipment – gross 761.9 764.9 Less: Accumulated depreciation (365.1) (358.3) Property, plant and equipment – net $ 396.8 $ 406.6 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 MP Total Balance at December 31, 2020, gross $ 140.6 $ 196.6 $ 337.2 Accumulated impairment (38.6) (23.2) (61.8) Balance at December 31, 2020, net 102.0 173.4 275.4 Foreign exchange effect and other (0.5) 1.0 0.5 Balance at March 31, 2021, gross 140.1 197.6 337.7 Accumulated impairment (38.6) (23.2) (61.8) Balance at March 31, 2021, net $ 101.5 $ 174.4 $ 275.9 |
Schedule of intangible assets by class | Intangible assets, net were comprised of the following (in millions): March 31, 2021 December 31, 2020 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 $ 9.8 $ (9.2) $ 0.6 $ 10.1 $ (9.6) $ 0.5 Customer Relationships 22 26.0 (24.3) 1.7 26.1 (24.1) 2.0 Land Use Rights 80 4.4 (0.8) 3.6 4.4 (0.7) 3.7 Other 8 25.4 (23.4) 2.0 25.5 (23.4) 2.1 Total definite-lived intangible assets $ 65.6 $ (57.7) $ 7.9 $ 66.1 $ (57.8) $ 8.3 |
Finite-lived Intangible Assets Amortization Expense | Three Months Ended (in millions) 2021 2020 Aggregate Amortization Expense $ 0.4 $ 0.4 |
Schedule of intangible assets amortization expense | Estimated aggregate intangible asset amortization expense (in millions) for each of the next five years is as follows: 2021 $ 1.7 2022 1.3 2023 0.7 2024 0.5 2025 0.4 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments designated as hedging instruments that are reported in the Consolidated Balance Sheet | The following table provides the location and fair value amounts of derivative instruments designated and not designated as hedging instruments that are reported in the Condensed Consolidated Balance Sheet (in millions): March 31, December 31, Instrument (1) Balance Sheet Account Derivatives designated as hedges Derivatives not designated as hedges Derivatives designated as hedges Derivatives not designated as hedges Foreign exchange contracts Other current assets $ — $ 0.1 $ — $ — Commodity swaps Other current assets 11.0 — 7.2 — Commodity swaps Other non-current assets 1.4 — 0.3 — Interest rate caps Other non-current assets 1.2 — — — Foreign exchange contracts Other current liabilities — (0.3) — — Cross currency swaps - net investment hedge Other current liabilities (0.9) — (2.0) — Interest rate caps Other current liabilities (1.2) — (1.2) — Cross currency swaps - net investment hedge Other non-current liabilities (5.4) — (8.2) — Interest rate caps Other non-current liabilities — — (2.6) — Net derivative asset (liability) $ 6.1 $ (0.2) $ (6.5) $ — (1) Categorized as Level 2 under the ASC 820 Fair Value Hierarchy. |
Schedule of derivative instruments that are designated as hedges in the Consolidated Statement of Comprehensive Income | The following tables provide the effect of derivative instruments that are designated as hedges in AOCI (in millions): Gain (Loss) Recognized on Derivatives in OCI, net of tax Gain (Loss) Reclassified from AOCI into Income (Loss) Three Months Ended March 31, Three Months Ended March 31, Instrument 2021 2020 Income Statement Account 2021 2020 Foreign exchange contracts $ — $ (1.1) Cost of goods sold $ — $ (1.4) Commodity swaps 7.9 (1.4) Cost of goods sold (0.3) (1.1) Cross currency swaps - net investment hedge 2.9 (0.2) Selling, general and administrative expenses — — Interest rate caps 3.0 (1.5) Interest expense (0.3) — Total $ 13.8 $ (4.2) Total $ (0.6) $ (2.5) The following tables provide the effect of derivative instruments that are designated as hedges in the Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions): Classification and amount of Gain (Loss) Recognized in Income (Loss) Cost of goods sold Interest expense Three Months Ended March 31, 2021 2020 2021 2020 Income Statement Accounts in which effects of cash flow hedges are recorded $ (688.8) (696.9) (15.3) (17.7) Gain (loss) reclassified from AOCI into Income (loss): Foreign exchange contracts — (1.4) — — Commodity swaps (0.3) (1.1) — — Interest rate caps — — (0.3) — Amount excluded from effectiveness testing recognized in Income (loss) based on amortization approach: Cross currency swaps - net investment hedge — — 0.2 — Total $ (0.3) $ (2.5) $ (0.1) $ — |
Schedule of fair value of derivative instruments not designated as hedging instruments that are reported in the Consolidated Statement of Comprehensive Income and Balance Sheet | Derivatives not designated as hedges are used to offset foreign exchange gains or losses resulting from the underlying exposures of foreign currency denominated assets and liabilities. The following table provides the effect of non-designated derivatives outstanding at the end of the period in the Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions): Gain (Loss) Recognized in Income (Loss) Instrument Income Statement Account Three Months Ended Three Months Ended Foreign exchange contracts Cost of goods sold $ (0.2) $ (0.4) Foreign exchange contracts Other income (expense) – net (0.1) (0.1) Total $ (0.3) $ (0.5) |
LONG-TERM OBLIGATIONS LONG TERM
LONG-TERM OBLIGATIONS LONG TERM OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Letters of credit outstanding (in millions): March 31, 2021 December 31, 2020 $400 Million Facility $ — $ — $300 Million Facility 59.7 35.3 Bilateral Arrangements 55.5 47.2 Total $ 115.2 $ 82.5 |
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 Condensed Consolidated Balance Sheet (“Book Value”), the Company estimates the fair values of its debt set forth below as of March 31, 2021, as follows (in millions, except for quotes): Book Value Quote Fair Value 5-5/8% Notes $ 600.0 $ 1.02875 $ 617.3 2017 Credit Agreement Original Term Loan (net of discount) $ 383.1 $ 0.99708 $ 382.0 |
RETIREMENT PLANS AND OTHER BE_2
RETIREMENT PLANS AND OTHER BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic cost | Information regarding the Company’s plans, including the U.S. SERP, is as follows (in millions): Three Months Ended 2021 2020 U.S. Pension Non-U.S. Pension Other U.S. Pension Non-U.S. Pension Other Components of net periodic cost: Service cost $ — $ 0.2 $ — $ — $ 0.3 $ — Interest cost 0.3 0.6 — 0.3 0.7 — Expected return on plan assets — (1.4) — — (1.3) — Amortization of actuarial (gain) loss 0.1 0.6 — — 0.5 — Net periodic cost $ 0.4 $ — $ — $ 0.3 $ 0.2 $ — |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The table below presents changes in AOCI by component for the three months ended March 31, 2021 and 2020. All amounts are net of tax (in millions). Three Months Ended Three Months Ended CTA Derivative Hedging Adj. Debt & Equity Securities Adj. Pension Liability Adj. Total CTA Derivative Hedging Adj. Debt & Equity Securities Adj. Pension Liability Adj. Total Beginning balance $ (145.2) $ (6.0) $ 1.2 $ (58.4) $ (208.4) $ (208.2) $ (0.8) $ 2.6 $ (51.1) $ (257.5) Other comprehensive income (loss) before reclassifications (20.2) 13.4 (1.1) (0.2) (8.1) (54.8) (6.3) (0.2) 2.6 (58.7) Amounts reclassified from AOCI — 0.4 — 0.6 1.0 — 2.1 — 0.4 2.5 Net other comprehensive income (loss) (20.2) 13.8 (1.1) 0.4 (7.1) (54.8) (4.2) (0.2) 3.0 (56.2) Ending balance $ (165.4) $ 7.8 $ 0.1 $ (58.0) $ (215.5) $ (263.0) $ (5.0) $ 2.4 $ (48.1) $ (313.7) |
Schedule of weighted-average assumptions used in the valuations | The following table presents the weighted-average assumptions used in the valuation: Grant date March 4, 2021 Dividend yields 1.12 % Expected volatility 53.03 % Risk free interest rate 0.29 % Expected life (in years) 3 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash and cash equivalents, not immediately available for use | $ 4.6 | $ 5 |
BASIS OF PRESENTATION - Schedul
BASIS OF PRESENTATION - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents - continuing operations | $ 572.9 | $ 665 | ||
Cash and cash equivalents - held for sale | 4.9 | 5.1 | ||
Total cash and cash equivalents | $ 577.8 | $ 670.1 | $ 515 | $ 540.1 |
BASIS OF PRESENTATION - Changes
BASIS OF PRESENTATION - Changes in Product Warranty Liability (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Changes in consolidated current and non-current product warranty liability | |
Balance as of December 31, 2020 | $ 52.9 |
Accruals for warranties issued during the period | 11.2 |
Changes in estimates | (0.2) |
Settlements during the period | (11.3) |
Foreign exchange effect/other | (0.6) |
Balance as of March 31, 2021 | $ 52 |
BASIS OF PRESENTATION - Allowan
BASIS OF PRESENTATION - Allowance for doubtful accounts rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 9.5 |
Provision for credit losses | 1.2 |
Other adjustments | (0.6) |
Ending balance | $ 10.1 |
BASIS OF PRESENTATION - Finance
BASIS OF PRESENTATION - Finance Receivables (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Feb. 28, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Financing Receivable, Net | $ 23.2 | $ 116 | |
Allowance for credit losses | $ (10.5) | $ (13.8) | |
Proceeds received from finance receivables sold | $ 99.4 | ||
Gain on finance receivables sold | 5.6 | ||
Value of finance receivables sold | $ 89.7 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Net Sales and Income (Loss) from Operations by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 864.2 | $ 833.6 |
Income (loss) from operations | 61.5 | (7.1) |
Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 476.7 | 511.7 |
Income (loss) from operations | 26.6 | (5.9) |
Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 378.2 | 315.6 |
Income (loss) from operations | 49.1 | 25 |
Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9.3 | 6.3 |
Income (loss) from operations | $ (14.2) | $ (26.2) |
BUSINESS SEGMENT INFORMATION _3
BUSINESS SEGMENT INFORMATION - Identifiable Assets by Segment (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,965.5 | $ 3,031.8 |
Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,700.9 | 1,541 |
Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,597.9 | 1,596.3 |
Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Assets | (339.2) | (111.8) |
Discontinued Operations, Held-for-sale | ||
Segment Reporting Information [Line Items] | ||
Assets held for sale | $ 5.9 | $ 6.3 |
BUSINESS SEGMENT INFORMATION _4
BUSINESS SEGMENT INFORMATION - Net Sales by Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 864.2 | $ 833.6 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Net sales | 415.7 | 431.1 |
North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 452.6 | 471.3 |
Western Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 212.7 | 194.6 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 152.8 | 110.3 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Net sales | 46.1 | 57.4 |
Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9.3 | 6.3 |
Corporate and Other / Eliminations | North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 10.2 | 14.4 |
Corporate and Other / Eliminations | Western Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.1 | 0.1 |
Corporate and Other / Eliminations | Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.2 | 0.2 |
Corporate and Other / Eliminations | Rest of World | ||
Segment Reporting Information [Line Items] | ||
Net sales | (1.2) | (8.4) |
AWP | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 476.7 | 511.7 |
AWP | Operating Segments | North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 296 | 342.5 |
AWP | Operating Segments | Western Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 94.3 | 88.8 |
AWP | Operating Segments | Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 70.3 | 51.1 |
AWP | Operating Segments | Rest of World | ||
Segment Reporting Information [Line Items] | ||
Net sales | 16.1 | 29.3 |
MP | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 378.2 | 315.6 |
MP | Operating Segments | North America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 146.4 | 114.4 |
MP | Operating Segments | Western Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 118.3 | 105.7 |
MP | Operating Segments | Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Net sales | 82.3 | 59 |
MP | Operating Segments | Rest of World | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 31.2 | $ 36.5 |
BUSINESS SEGMENT INFORMATION _5
BUSINESS SEGMENT INFORMATION - Net Sales by Product Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 864.2 | $ 833.6 |
Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 476.7 | 511.7 |
Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 378.2 | 315.6 |
Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9.3 | 6.3 |
Aerial Work Platforms | ||
Segment Reporting Information [Line Items] | ||
Net sales | 357.2 | 347.1 |
Aerial Work Platforms | Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 356.8 | 346.7 |
Aerial Work Platforms | Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Aerial Work Platforms | Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.4 | 0.4 |
Materials Processing Equipment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 228.6 | 188.1 |
Materials Processing Equipment | Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Materials Processing Equipment | Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 228.6 | 188.1 |
Materials Processing Equipment | Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Specialty Equipment | ||
Segment Reporting Information [Line Items] | ||
Net sales | 149.8 | 126.6 |
Specialty Equipment | Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Specialty Equipment | Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 149.1 | 126.3 |
Specialty Equipment | Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.7 | 0.3 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 128.6 | 171.8 |
Other | Operating Segments | AWP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 119.9 | 165 |
Other | Operating Segments | MP | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.5 | 1.2 |
Other | Corporate and Other / Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 8.2 | $ 5.6 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
(Provision for) benefit from income taxes | $ (7.7) | $ 0.8 |
Income (loss) from continuing operations before income taxes | $ 47.4 | $ (25.5) |
Effective income tax rate, continuing operations | 16.20% | 3.10% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings per share | ||
Income (loss) from continuing operations | $ 39.7 | $ (24.7) |
Income (loss) from discontinued operations – net of tax | 0 | (0.2) |
Gain (loss) on disposition of discontinued operations – net of tax | 0.4 | 0 |
Net income (loss) | $ 40.1 | $ (24.9) |
Basic shares: | ||
Weighted average shares outstanding - basic (in shares) | 69.5 | 70.5 |
Earnings (loss) per share – basic: | ||
Income (loss) from continuing operations | $ 0.57 | $ (0.35) |
Income (loss) from discontinued operations – net of tax | 0 | 0 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.01 | 0 |
Net income (loss) | $ 0.58 | $ (0.35) |
Diluted shares: | ||
Weighted average shares outstanding - basic (in shares) | 69.5 | 70.5 |
Effect of dilutive securities: | ||
Stock options and restricted stock awards [in shares] | 1.3 | 0 |
Diluted weighted average shares outstanding (in shares) | 70.8 | 70.5 |
Earnings (loss) per share – diluted: | ||
Income (loss) from continuing operations | $ 0.56 | $ (0.35) |
Income (loss) from discontinued operations – net of tax | 0 | 0 |
Gain (loss) on disposition of discontinued operations – net of tax | 0.01 | 0 |
Net income (loss) | $ 0.57 | $ (0.35) |
Restricted Stock | ||
Other details of antidilutive securities | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.1 | 1.6 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished equipment | $ 235.7 | $ 195.8 |
Replacement parts | 152.9 | 157 |
Work-in-process | 64 | 57.2 |
Raw materials and supplies | 206.2 | 200.4 |
Inventories | 658.8 | 610.4 |
Inventory reserves | $ 59.3 | $ 61.8 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Property, plant and equipment. | ||
Gross property, plant and equipment | $ 761.9 | $ 764.9 |
Less: Accumulated depreciation | (365.1) | (358.3) |
Net property, plant and equipment | 396.8 | 406.6 |
Property | ||
Property, plant and equipment. | ||
Gross property, plant and equipment | 43.2 | 43.6 |
Plant | ||
Property, plant and equipment. | ||
Gross property, plant and equipment | 249.3 | 250.1 |
Equipment | ||
Property, plant and equipment. | ||
Gross property, plant and equipment | 389.4 | 390.2 |
Leasehold Improvements | ||
Property, plant and equipment. | ||
Gross property, plant and equipment | 49.7 | 49.9 |
Construction in Progress | ||
Property, plant and equipment. | ||
Gross property, plant and equipment | $ 30.3 | $ 31.1 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Changes in goodwill by business segment | |
Balance at the beginning of the period, goodwill gross | $ 337.2 |
Accumulated impairment | (61.8) |
Balance at the beginning of the period, goodwill net | 275.4 |
Foreign exchange effect and other | 0.5 |
Balance at the end of the period, goodwill gross | 337.7 |
Accumulated impairment | (61.8) |
Balance at the end of the period, goodwill net | 275.9 |
AWP | |
Changes in goodwill by business segment | |
Balance at the beginning of the period, goodwill gross | 140.6 |
Accumulated impairment | (38.6) |
Balance at the beginning of the period, goodwill net | 102 |
Foreign exchange effect and other | (0.5) |
Balance at the end of the period, goodwill gross | 140.1 |
Accumulated impairment | (38.6) |
Balance at the end of the period, goodwill net | 101.5 |
MP | |
Changes in goodwill by business segment | |
Balance at the beginning of the period, goodwill gross | 196.6 |
Accumulated impairment | (23.2) |
Balance at the beginning of the period, goodwill net | 173.4 |
Foreign exchange effect and other | 1 |
Balance at the end of the period, goodwill gross | 197.6 |
Accumulated impairment | (23.2) |
Balance at the end of the period, goodwill net | $ 174.4 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET GOODWILL AND INTANGIBLE ASSETS, NET - INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Definite-lived intangible assets: | |||
Gross Carrying Amount | $ 65.6 | $ 66.1 | |
Accumulated Amortization | (57.7) | (57.8) | |
Net Carrying Amount | 7.9 | 8.3 | |
Aggregate Amortization Expense | 0.4 | $ 0.4 | |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
2021 | 1.7 | ||
2022 | 1.3 | ||
2023 | 0.7 | ||
2024 | 0.5 | ||
2025 | $ 0.4 | ||
Technology | |||
Definite-lived intangible assets: | |||
Weighted Average Life (in years) | 7 years | ||
Gross Carrying Amount | $ 9.8 | 10.1 | |
Accumulated Amortization | (9.2) | (9.6) | |
Net Carrying Amount | $ 0.6 | 0.5 | |
Customer Relationships | |||
Definite-lived intangible assets: | |||
Weighted Average Life (in years) | 22 years | ||
Gross Carrying Amount | $ 26 | 26.1 | |
Accumulated Amortization | (24.3) | (24.1) | |
Net Carrying Amount | $ 1.7 | 2 | |
Land Use Rights | |||
Definite-lived intangible assets: | |||
Weighted Average Life (in years) | 80 years | ||
Gross Carrying Amount | $ 4.4 | 4.4 | |
Accumulated Amortization | (0.8) | (0.7) | |
Net Carrying Amount | $ 3.6 | 3.7 | |
Other | |||
Definite-lived intangible assets: | |||
Weighted Average Life (in years) | 8 years | ||
Gross Carrying Amount | $ 25.4 | 25.5 | |
Accumulated Amortization | (23.4) | (23.4) | |
Net Carrying Amount | $ 2 | $ 2.1 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 9.9 | |
Derivatives designated as hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 0.8 | $ 7.8 |
Derivatives designated as hedges | Cross currency swaps | Net Investment Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | 93.8 | 97.7 |
Derivatives designated as hedges | Commodity swaps | ||
Derivative [Line Items] | ||
Derivative, notional amount | 26.1 | 26 |
Derivatives designated as hedges | Interest Rate Cap | ||
Derivative [Line Items] | ||
Derivative, notional amount | 300 | 300 |
Derivatives not designated as hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 90.3 | $ 54.2 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Balance Sheet Table (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Net derivative asset (liability) | $ 6.1 | $ (6.5) |
Derivatives designated as hedges | Other current assets | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 0 |
Derivatives designated as hedges | Other current assets | Commodity swaps | ||
Derivative [Line Items] | ||
Derivative assets | 11 | 7.2 |
Derivatives designated as hedges | Other current liabilities | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivatives liabilities | 0 | 0 |
Derivatives designated as hedges | Other current liabilities | Cross currency swaps | ||
Derivative [Line Items] | ||
Derivatives liabilities | (0.9) | (2) |
Derivatives designated as hedges | Other current liabilities | Interest Rate Cap | ||
Derivative [Line Items] | ||
Derivatives liabilities | (1.2) | (1.2) |
Derivatives designated as hedges | Other non-current liabilities | Cross currency swaps | ||
Derivative [Line Items] | ||
Derivatives liabilities | (5.4) | (8.2) |
Derivatives designated as hedges | Other non-current liabilities | Interest Rate Cap | ||
Derivative [Line Items] | ||
Derivatives liabilities | 0 | (2.6) |
Derivatives designated as hedges | Other Noncurrent Assets | Interest Rate Cap | ||
Derivative [Line Items] | ||
Derivative assets | 1.2 | 0 |
Derivatives designated as hedges | Other Noncurrent Assets | Commodity swaps | ||
Derivative [Line Items] | ||
Derivative assets | 1.4 | 0.3 |
Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Net derivative asset (liability) | (0.2) | 0 |
Derivatives not designated as hedges | Other current assets | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative assets | 0.1 | 0 |
Derivatives not designated as hedges | Other current assets | Commodity swaps | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 0 |
Derivatives not designated as hedges | Other current liabilities | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivatives liabilities | (0.3) | 0 |
Derivatives not designated as hedges | Other current liabilities | Cross currency swaps | ||
Derivative [Line Items] | ||
Derivatives liabilities | 0 | 0 |
Derivatives not designated as hedges | Other current liabilities | Interest Rate Cap | ||
Derivative [Line Items] | ||
Derivatives liabilities | 0 | 0 |
Derivatives not designated as hedges | Other non-current liabilities | Cross currency swaps | ||
Derivative [Line Items] | ||
Derivatives liabilities | 0 | 0 |
Derivatives not designated as hedges | Other non-current liabilities | Interest Rate Cap | ||
Derivative [Line Items] | ||
Derivatives liabilities | 0 | 0 |
Derivatives not designated as hedges | Other Noncurrent Assets | Interest Rate Cap | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 0 |
Derivatives not designated as hedges | Other Noncurrent Assets | Commodity swaps | ||
Derivative [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Effect of derivative instruments designated as hedges in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Cost of goods sold | $ (688.8) | $ (696.9) |
Interest Expense | (15.3) | (17.7) |
Other Nonoperating Income (Expense) | 2.6 | (1.6) |
Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Derivative [Line Items] | ||
Cost of goods sold | (688.8) | (696.9) |
Interest Expense | (15.3) | (17.7) |
Derivatives designated as hedges | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized on Derivatives in OCI, net of tax | 13.8 | (4.2) |
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.6) | (2.5) |
Derivatives designated as hedges | Cash Flow Hedging | Cost of goods sold | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.3) | (2.5) |
Derivatives designated as hedges | Cash Flow Hedging | Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.1) | 0 |
Derivatives designated as hedges | Cash Flow Hedging | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized on Derivatives in OCI, net of tax | 0 | (1.1) |
Derivatives designated as hedges | Cash Flow Hedging | Foreign exchange contracts | Cost of goods sold | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | 0 | (1.4) |
Derivatives designated as hedges | Cash Flow Hedging | Foreign exchange contracts | Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | 0 | |
Derivatives designated as hedges | Cash Flow Hedging | Commodity swaps | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized on Derivatives in OCI, net of tax | 7.9 | (1.4) |
Derivatives designated as hedges | Cash Flow Hedging | Commodity swaps | Cost of goods sold | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.3) | (1.1) |
Derivatives designated as hedges | Cash Flow Hedging | Commodity swaps | Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | 0 | |
Derivatives designated as hedges | Cash Flow Hedging | Interest Rate Cap | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized on Derivatives in OCI, net of tax | 3 | (1.5) |
Derivatives designated as hedges | Cash Flow Hedging | Interest Rate Cap | Cost of goods sold | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | 0 | |
Derivatives designated as hedges | Cash Flow Hedging | Interest Rate Cap | Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.3) | 0 |
Derivatives designated as hedges | Net Investment Hedging | Cross currency swaps | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized on Derivatives in OCI, net of tax | 2.9 | (0.2) |
Derivatives designated as hedges | Net Investment Hedging | Cross currency swaps | Cost of goods sold | ||
Derivative [Line Items] | ||
Cross currency swaps - net investment hedge | 0 | |
Derivatives designated as hedges | Net Investment Hedging | Cross currency swaps | Interest Expense | ||
Derivative [Line Items] | ||
Cross currency swaps - net investment hedge | 0.2 | |
Derivatives designated as hedges | Net Investment Hedging | Cross currency swaps | Selling, General and Administrative Expenses | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - AOCI Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Cost of goods sold | $ (688.8) | $ (696.9) |
Interest Expense | 15.3 | 17.7 |
Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (0.3) | (0.5) |
Cash Flow Hedging | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.6) | (2.5) |
Cash Flow Hedging | Cost of goods sold | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.3) | (2.5) |
Cash Flow Hedging | Interest Expense | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.1) | 0 |
Foreign exchange contracts | Cost of goods sold | Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (0.2) | (0.4) |
Foreign exchange contracts | Other income (expense) – net | Derivatives not designated as hedges | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (0.1) | (0.1) |
Foreign exchange contracts | Cash Flow Hedging | Cost of goods sold | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | 0 | (1.4) |
Foreign exchange contracts | Cash Flow Hedging | Interest Expense | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | 0 | |
Commodity swaps | Cash Flow Hedging | Cost of goods sold | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.3) | (1.1) |
Commodity swaps | Cash Flow Hedging | Interest Expense | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | 0 | |
Interest Rate Cap | Cash Flow Hedging | Cost of goods sold | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | 0 | |
Interest Rate Cap | Cash Flow Hedging | Interest Expense | Derivatives designated as hedges | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income (Loss) | (0.3) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Cost of goods sold | (688.8) | (696.9) |
Interest Expense | $ 15.3 | $ 17.7 |
LONG-TERM OBLIGATIONS - 2017 Cr
LONG-TERM OBLIGATIONS - 2017 Credit Agreement (Details) | Apr. 01, 2021USD ($) | Mar. 07, 2019USD ($) | Feb. 28, 2018 | Aug. 17, 2017 | Jun. 30, 2021 | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021 | Feb. 15, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||
Loss on early extinguishment of debt | $ (2,100,000) | $ 0 | |||||||||
2017 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of capital stock of foreign subsidiary pledged as collateral for borrowings (as a percent) | 65.00% | ||||||||||
Letter of Credit | 2017 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | ||||||||||
Senior secured term loans | Secured Debt | 2017 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | $ 600,000,000 | ||||||||||
Senior secured term loans | Secured Debt | Original Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | $ 400,000,000 | ||||||||||
Senior secured term loans | Secured Debt | 2019 Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | $ 200,000,000 | ||||||||||
Line of Credit | 2017 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Incremental borrowing capacity | 150,000,000 | $ 300,000,000 | |||||||||
Line of Credit | Secured Debt | 2017 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 383,100,000 | $ 579,900,000 | |||||||||
Debt, weighted average interest rate | 2.75% | 3.00% | |||||||||
Increase (decrease) in interest rate | (0.025%) | (0.025%) | |||||||||
Line of Credit | Secured Debt | Original Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term debt | $ 383,100,000 | ||||||||||
Line of Credit | Revolving Credit Facility | 2017 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Springing covenant threshold | 30.00% | ||||||||||
Debt instrument covenant senior secured debt leverage ratio maximum | 3.75 | ||||||||||
Line of credit | $ 0 | $ 0 | |||||||||
Line of Credit | Revolving Credit Facility | 2017 Credit Agreement | Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument covenant minimum interest coverage ratio | 2.5 | ||||||||||
Debt instrument covenant senior secured debt leverage ratio maximum | 2.75 | ||||||||||
Increase (decrease) in interest rate | 0.025% | ||||||||||
Line of Credit | Revolving Credit Facility | Amendment And Restatement Agreement | Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loss on early extinguishment of debt | $ (2,000,000) | ||||||||||
Increase (decrease) in interest rate | (0.025%) | ||||||||||
Line of Credit | Letter of Credit | Additional Credit Agreement 2017 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Letters of credit maximum available under additional facilities | $ 300,000,000 | ||||||||||
Line of Credit | LIBOR | Secured Debt | 2017 Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.00% | ||||||||||
Floor interest rate | 0.75% | ||||||||||
Line of Credit | LIBOR | Secured Debt | 2019 Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.75% | ||||||||||
Floor interest rate | 0.75% |
LONG-TERM OBLIGATIONS - Schedul
LONG-TERM OBLIGATIONS - Schedule of Letters of Credit Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 115.2 | $ 82.5 |
$400 Million Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | 0 | 0 |
$300 Million Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | 59.7 | 35.3 |
Bilateral Arrangements | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 55.5 | $ 47.2 |
LONG-TERM OBLIGATIONS - 5-5_8%
LONG-TERM OBLIGATIONS - 5-5/8% Senior Notes (Details) - USD ($) | Apr. 05, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jan. 31, 2017 | Nov. 26, 2012 | Mar. 26, 2012 |
Debt Instrument [Line Items] | ||||||
Loss on early extinguishment of debt | $ (2,100,000) | $ 0 | ||||
Senior Notes | 5-5/8% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 600,000,000 | |||||
Interest rate (as a percent) | 5.625% | 5.625% | ||||
Long-term debt | $ 600,000,000 | |||||
Senior Notes | 5-5/8% Notes | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Senior Debt | $ 622,900,000 | |||||
Debt Instrument, Increase, Accrued Interest | 6,000,000 | |||||
Redemption Premium | 16,900,000 | |||||
Loss on early extinguishment of debt | $ 23,000,000 | |||||
Senior Notes | 6% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Tender offer for face amount of debt | $ 550,000,000 | |||||
Interest rate (as a percent) | 6.00% | 6.00% | ||||
Senior Notes | Senior Notes, 6%, $300 Million Partial Redemption | ||||||
Debt Instrument [Line Items] | ||||||
Authorized repurchase amount | $ 300,000,000 | |||||
Senior Notes | 6-1/2% Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 300,000,000 |
LONG-TERM OBLIGATIONS - 5% Seni
LONG-TERM OBLIGATIONS - 5% Senior Notes (Details) - 5% Notes - Senior Notes - Subsequent Event | Apr. 01, 2021USD ($) |
Debt Disclosure [Abstract] | |
Face amount of debt | $ 600,000,000 |
Debt Instrument [Line Items] | |
Face amount of debt | $ 600,000,000 |
Interest rate (as a percent) | 5.00% |
LONG-TERM OBLIGATIONS - Fair Va
LONG-TERM OBLIGATIONS - Fair Value of Debt (Details) $ in Millions | Mar. 31, 2021USD ($)$ / shares |
Senior Notes | 5-5/8% Notes | |
Debt Instrument [Line Items] | |
Book Value | $ 600 |
Senior Notes | 5-5/8% Notes | Fair Value, Inputs, Level 2 | |
Debt Instrument [Line Items] | |
Fair Value | 617.3 |
Line of Credit | Secured Debt | Original Term Loan | |
Debt Instrument [Line Items] | |
Book Value | 383.1 |
Line of Credit | Secured Debt | Original Term Loan | Fair Value, Inputs, Level 2 | |
Debt Instrument [Line Items] | |
Fair Value | $ 382 |
Measurement Input, Quoted Price | Senior Notes | 5-5/8% Notes | |
Debt Instrument [Line Items] | |
Quotes | $ / shares | 1.02875 |
Measurement Input, Quoted Price | Line of Credit | Secured Debt | Original Term Loan | |
Debt Instrument [Line Items] | |
Quotes | $ / shares | 0.99708 |
RETIREMENT PLANS AND OTHER BE_3
RETIREMENT PLANS AND OTHER BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Plans | ||
Components of net periodic cost: | ||
Service cost | $ 0 | $ 0 |
Interest cost | 0 | 0 |
Expected return on plan assets | 0 | 0 |
Amortization of actuarial (gain) loss | 0 | 0 |
Net periodic cost | 0 | 0 |
U.S. Plan | Pension Plan | ||
Components of net periodic cost: | ||
Service cost | 0 | 0 |
Interest cost | 0.3 | 0.3 |
Expected return on plan assets | 0 | 0 |
Amortization of actuarial (gain) loss | 0.1 | 0 |
Net periodic cost | 0.4 | 0.3 |
Non-U.S. Plan | Pension Plan | ||
Components of net periodic cost: | ||
Service cost | 0.2 | 0.3 |
Interest cost | 0.6 | 0.7 |
Expected return on plan assets | (1.4) | (1.3) |
Amortization of actuarial (gain) loss | 0.6 | 0.5 |
Net periodic cost | $ 0 | $ 0.2 |
LITIGATION AND CONTINGENCIES (D
LITIGATION AND CONTINGENCIES (Details) R$ in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021BRL (R$) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Loss Contingencies and Guarantee Obligations | |||
Estimated ICMS and related interest | R$ 102 | $ 18 | |
Guarantee terms maximum | five years | ||
Credit Guarantee | |||
Loss Contingencies and Guarantee Obligations | |||
Guarantees, maximum exposure | $ 195.3 | $ 143.8 |
STOCKHOLDERS' EQUITY - Accumula
STOCKHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Loss) Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ (208.4) | $ (257.5) |
Other comprehensive income (loss) before reclassifications | (8.1) | (58.7) |
Amounts reclassified from AOCI | 1 | 2.5 |
Net other comprehensive income (loss) | (7.1) | (56.2) |
Ending balance | (215.5) | (313.7) |
CTA | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (145.2) | (208.2) |
Other comprehensive income (loss) before reclassifications | (20.2) | (54.8) |
Amounts reclassified from AOCI | 0 | 0 |
Net other comprehensive income (loss) | (20.2) | (54.8) |
Ending balance | (165.4) | (263) |
Derivative Hedging Adj. | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (6) | (0.8) |
Other comprehensive income (loss) before reclassifications | 13.4 | (6.3) |
Amounts reclassified from AOCI | 0.4 | 2.1 |
Net other comprehensive income (loss) | 13.8 | (4.2) |
Ending balance | 7.8 | (5) |
Debt & Equity Securities Adj. | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 1.2 | 2.6 |
Other comprehensive income (loss) before reclassifications | (1.1) | (0.2) |
Amounts reclassified from AOCI | 0 | 0 |
Net other comprehensive income (loss) | (1.1) | (0.2) |
Ending balance | 0.1 | 2.4 |
Pension Liability Adj. | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (58.4) | (51.1) |
Other comprehensive income (loss) before reclassifications | (0.2) | 2.6 |
Amounts reclassified from AOCI | 0.6 | 0.4 |
Net other comprehensive income (loss) | 0.4 | 3 |
Ending balance | $ (58) | $ (48.1) |
STOCKHOLDERS' EQUITY - Stock-Ba
STOCKHOLDERS' EQUITY - Stock-Based Compensation (Details) - $ / shares shares in Millions | Mar. 04, 2021 | Mar. 31, 2021 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0.6 | |
Granted (in dollars per shares) | $ 44.56 | |
Restricted Stock, Time-based | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards | 57.00% | |
Award vesting period | 3 years | |
Restricted Stock, Time-based | Tranche 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Restricted Stock, Time-based | Tranche 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Restricted Stock, Time-based | Tranche 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards | 28.00% | |
Award vesting period | 3 years | |
Performance Shares | Tranche 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 100.00% | |
Market Condition Award | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards | 15.00% | |
Award vesting period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Dividend yields (as a percent) | 1.12% | |
Expected volatility (as a percent) | 53.03% | |
Risk-free interest rate (as a percent) | 0.29% | |
Expected life (in years) | 3 years | |
Market Condition Award | Tranche 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 100.00% | |
Market Condition Award | March 8, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per shares) | $ 54.92 |
STOCKHOLDERS' EQUITY - Share Re
STOCKHOLDERS' EQUITY - Share Repurchases and Dividends (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jul. 12, 2018 | |
Subsequent Event [Line Items] | |||
Stock repurchase program, authorized amount | $ 300,000,000 | ||
Payments for Repurchase of Common Stock | $ 200,000 | $ 54,800,000 | |
Treasury stock acquired (in shares) | 2,500,000 | ||
Treasury stock acquired, cost method | $ 300,000 | $ 54,900,000 | |
Stock repurchased during period, shares | 0 | ||
Dividends declared (in dollars per share) | $ 0.12 | $ 0.12 | |
Share Repurchase Program Approved By Board of Directors | |||
Subsequent Event [Line Items] | |||
Treasury stock acquired, cost method | $ 54,600,000 |