RETIREMENT PLANS AND OTHER BENEFITS

Pension Plans

U.S. Plans – As of September 30, 2013, the Company maintained one qualified defined benefit pension plan covering certain domestic employees (the “Terex Plan”). Participation in the Terex Plan for all employees has been frozen. Participants are credited with post-freeze service for purposes of determining vesting and retirement eligibility only. The benefits covering salaried employees are based primarily on years of service and employees’ qualifying compensation during the final years of employment. The benefits covering bargaining unit employees are based primarily on years of service and a flat dollar amount per year of service. It is the Company’s policy generally to fund the Terex Plan based on the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Plan assets consist primarily of common stocks, bonds and short-term cash equivalent funds.

The Company maintains a nonqualified Supplemental Executive Retirement Plan (“SERP”). The SERP provides retirement benefits to certain senior executives of the Company. Generally, the SERP provides a benefit based on average salary and bonus earned over a participant’s final five years of employment and years of service reduced by benefits earned under any Company retirement program, excluding salary deferrals and matching contributions. In addition, benefits are reduced by Social Security Primary Insurance Amounts attributable to Company contributions. The SERP is unfunded and participation in the SERP has been frozen. The Company also maintains a non-qualified unfunded defined contribution plan for certain other senior executives who are not eligible for the SERP.

Other Postemployment Benefits

The Company has several non-pension post-retirement benefit programs. The Company provides postemployment health and life insurance benefits to certain former salaried and hourly employees. The health care programs are contributory, with participants’ contributions adjusted annually, and the life insurance plan is noncontributory.

Information regarding the Company’s U.S. plans, including the SERP, was as follows (in millions):



	Pension Benefits
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Components of net periodic cost:
Service cost	$	0.3		$	0.3		$	0.8		$	0.9
Interest cost	1.7			1.8			5.1			5.4
Expected return on plan assets	(2.3		)	(2.2		)	(6.8		)	(6.6		)
Amortization of prior service cost	—			—			0.1			0.1
Amortization of actuarial loss	1.1			1.3			3.3			3.8
Net periodic cost	$	0.8		$	1.2		$	2.5		$	3.6



	Other Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Components of net periodic cost:
Interest cost	$	0.1	$	0.1	$	0.2	$	0.3
Amortization of actuarial loss	—		—		0.1		0.1
Net periodic cost	$	0.1	$	0.1	$	0.3	$	0.4

Non-U.S. Plans – The Company maintains defined benefit plans in France, Germany, India, Switzerland and the United Kingdom for some of its subsidiaries. The United Kingdom plan is a funded plan and the Company funds this plan in accordance with funding regulations in the United Kingdom and a negotiated agreement between the Company and the plan’s trustees. The plans in France, Germany and India are unfunded plans. For the Company’s operations in Austria, Italy and Korea there are mandatory termination indemnity plans providing a benefit that is payable upon termination of employment in substantially all cases of termination. The Company records this obligation based on the mandated requirements. The measure of the current obligation is not dependent on the employees’ future service and therefore is measured at current value.

Information regarding the Company’s non-U.S. plans was as follows (in millions):



	Pension Benefits
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Components of net periodic cost:
Service cost	$	2.1		$	1.5		$	6.2		$	4.8
Interest cost	4.1			4.1			12.2			12.4
Expected return on plan assets	(1.8		)	(1.7		)	(5.2		)	(5.0		)
Employee contributions	(0.3		)	(0.1		)	(0.5		)	(0.3		)
Amortization of actuarial loss	1.4			0.2			4.1			0.6
Net periodic cost	$	5.5		$	4.0		$	16.8		$	12.5