BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net sales
AWP	$	572.5	$	445.0	$	1,644.4	$	1,370.6
MP	418.7		311.3		1,237.7		890.5
Corporate and Other / Eliminations	2.6		9.3		14.6		28.6
Total	$	993.8	$	765.6	$	2,896.7	$	2,289.7
Income (loss) from operations
AWP	$	34.9	$	13.3	$	126.7	$	2.4
MP	57.1		40.3		178.3		88.7
Corporate and Other / Eliminations	(17.8)		(17.1)		(46.8)		(54.3)
Total	$	74.2	$	36.5	$	258.2	$	36.8

Sales between segments are generally priced to recover costs plus a reasonable markup for profit, which is eliminated in consolidation.

	September 30, 2021		December 31, 2020
Identifiable assets
AWP (1)	$	1,814.3	$	1,541.0
MP	1,675.5		1,596.3
Corporate and Other / Eliminations (2)	(428.9)		(111.8)
Assets held for sale	7.0		6.3
Total	$	3,067.9	$	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 and higher intercompany eliminations.

Geographic net sales information is presented below (in millions):

	Three Months Ended September 30, 2021								Three Months Ended September 30, 2020
	AWP		MP		Corporate and Other / Eliminations		Total		AWP		MP		Corporate and Other / Eliminations		Total
Net sales by region
North America	$	377.5	$	159.8	$	8.3	$	545.6	$	278.4	$	123.3	$	16.0	$	417.7
Western Europe	81.8		117.9		0.2		199.9		55.6		94.6		—		150.2
Asia-Pacific	80.5		95.5		0.5		176.5		89.3		64.3		0.2		153.8
Rest of World (1)	32.7		45.5		(6.4)		71.8		21.7		29.1		(6.9)		43.9
Total (2)	$	572.5	$	418.7	$	2.6	$	993.8	$	445.0	$	311.3	$	9.3	$	765.6

(1)     Includes intercompany sales and eliminations.

(2)     Total sales include $490.3 million and $386.2 million for the three months ended September 30, 2021 and 2020, respectively, attributable to the U.S., the Company’s country of domicile.

	Nine Months Ended September 30, 2021								Nine Months Ended September 30, 2020
	AWP		MP		Corporate and Other / Eliminations		Total		AWP		MP		Corporate and Other / Eliminations		Total
Net sales by region
North America	$	1,066.7	$	488.9	$	23.7	$	1,579.3	$	897.7	$	361.5	$	49.7	$	1,308.9
Western Europe	265.8		379.8		0.4		646.0		186.2		270.5		0.2		456.9
Asia-Pacific	241.6		258.0		0.9		500.5		215.8		169.9		1.5		387.2
Rest of World (1)	70.3		111.0		(10.4)		170.9		70.9		88.6		(22.8)		136.7
Total (2)	$	1,644.4	$	1,237.7	$	14.6	$	2,896.7	$	1,370.6	$	890.5	$	28.6	$	2,289.7

(1)     Includes intercompany sales and eliminations.

(2) Total sales include $1.4 billion and $1.2 billion for the nine months ended September 30, 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 September 30, 2021								Three Months Ended September 30, 2020
	AWP		MP		Corporate and Other / Eliminations		Total		AWP		MP		Corporate and Other / Eliminations		Total
Net sales by product type
Aerial Work Platforms	$	413.7	$	—	$	0.2	$	413.9	$	321.1	$	—	$	0.3	$	321.4
Materials Processing Equipment	—		245.5		—		245.5		—		194.7		—		194.7
Specialty Equipment	—		173.1		0.3		173.4		—		116.4		0.4		116.8
Other (1)	158.8		0.1		2.1		161.0		123.9		0.2		8.6		132.7
Total	$	572.5	$	418.7	$	2.6	$	993.8	$	445.0	$	311.3	$	9.3	$	765.6

(1)     Includes other product types, intercompany sales and eliminations.

	Nine Months Ended September 30, 2021								Nine Months Ended September 30, 2020
	AWP		MP		Corporate and Other / Eliminations		Total		AWP		MP		Corporate and Other / Eliminations		Total
Net sales by product type
Aerial Work Platforms	$	1,218.9	$	—	$	0.8	$	1,219.7	$	947.2	$	—	$	0.5	$	947.7
Materials Processing Equipment	—		735.4		—		735.4		—		533.6		—		533.6
Specialty Equipment	—		501.7		1.8		503.5		—		354.6		1.1		355.7
Other (1)	425.5		0.6		12.0		438.1		423.4		2.3		27.0		452.7
Total	$	1,644.4	$	1,237.7	$	14.6	$	2,896.7	$	1,370.6	$	890.5	$	28.6	$	2,289.7

(1)     Includes other product types, intercompany sales and eliminations.