LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2020

Lease Commitments [Abstract]

LEASE COMMITMENTS

LEASES

Terex has operating leases for real property, vehicles and office and industrial equipment, generally expiring over terms from 1 to 15 years. Many of the leases held by Terex include options to extend or terminate the lease.

Real property leases are used for office, administrative and industrial purposes. The base terms of these leases typically expire between 2 and 10 years, with options to renew between 1 and 15 years. Most of our renewal options are linked to market conditions and Terex cannot estimate how existing renewal options will affect the monthly payments. Residual value guarantees are not material.

The vehicle leases mainly include cars and trucks. Term length for these leases typically varies between 1 and 7 years. 

Office and industrial equipment leases primarily include machinery used for conducting business at office locations and manufacturing sites worldwide. Term length for these leases typically varies between 1 and 6 years.

Operating Leases

Operating lease cost consists of the following (in millions):

	Year Ended December 31,
	2020		2019
Operating lease cost	$	32.0	$	33.8
Variable lease cost	4.9		6.7
Short-term lease cost	4.8		5.0
Total operating lease costs	$	41.7	$	45.5

Variable lease costs correspond to future period lease payments which are determined at fair market value at determined points in time. Operating lease obligations consist primarily of commitments to rent real properties.

Rental expense under operating leases was $37.5 million in 2018, prior to the adoption of the current leasing standard.

Supplemental balance sheet information related to leases (in millions, except lease term and discount rate):

	December 31,
	2020			2019
Operating lease right-of-use assets included within Other assets	$	102.9		$	122.9
Current maturities of operating leases included within Other current liabilities	$	24.8		$	25.9
Non-current operating leases included within Other liabilities	82.9			104.7
Total operating lease liabilities	$	107.7		$	130.6
Weighted average discount rate for operating leases	5.33		%	5.58		%
Weighted average remaining operating lease term in years	5			6

Maturities of operating lease liabilities (in millions):

2021	$	29.5
2022	26.6
2023	23.6
2024	17.1
2025	11.3
Thereafter	14.1
Total undiscounted operating lease payments	122.2
Less: Imputed interest	(14.5)
Total operating lease liabilities	107.7
Less: Current maturities of operating lease liabilities	(24.8)
Non-current operating lease liabilities	$	82.9

Supplemental cash flow and other information related to operating leases (in millions):

	December 31,
	2020		2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	32.1	$	36.6
Operating right-of-use assets obtained in exchange for operating lease liabilities	$	21.4	$	22.9