What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-11 compared with 2021-02-12 · 103 added, 82 removed, 273 unchanged (40% of the section changed)

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We design, build and support products used in construction, maintenance, manufacturing, energy, minerals and materials management applications.

Our products are manufactured in North and South America, Europe, Australia and Asia and sold worldwide.

Terex products and solutions enable customers to reduce their environmental impact including electric and hybrid offerings that deliver quiet and emission-free performance, products that support renewable energy, and products that aid in the recovery of useful materials from various types of waste.

Our products are manufactured in North America, Europe, Australia and Asia and sold worldwide.

We engage with customers through all stages of the product life cycle, from initial specification and financing to parts and service support.

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Our AWP segment designs, manufactures, services and markets aerial work platform equipment, utility equipment and telehandlers.

Products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, scissor lifts, utility equipment (including truck-mounted digger derricks and insulated aerial devices) and telehandlers, as well as their related components and replacement parts.

Products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, scissor lifts, utility equipment (including digger derricks and insulated aerial devices) 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.

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• Aerial work platform equipment is manufactured in Redmond and Moses Lake, Washington, Umbertide, Italy and Changzhou, China;

• Utility products are manufactured in Watertown and Huron, South Dakota and Betim, Brazil;

• Telehandlers are manufactured in Oklahoma City, Oklahoma and Umbertide, Italy.

• Utility products are manufactured in Watertown and Huron, South Dakota and Changzhou, China;

• Telehandlers are manufactured in Oklahoma City, Oklahoma, Umbertide, Italy and Monterrey, Mexico.

We have a parts and logistics center located in North Bend, Washington for our aerial and utility products.

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through a network of service branches and field service operations.

We have announced plans to exit and sell our utility hot line tools business in Betim, Brazil.

MATERIALS PROCESSING

Our MP segment 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.

Our MP segment designs, manufactures, services and markets materials processing and specialty equipment, including crushers, washing systems, screens, trommels, 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.

We market our MP products principally under the Terex ® , Powerscreen ® , Fuchs ® , EvoQuip ® , Canica ® , Cedarapids ® , CBI ® , Simplicity ® , Franna ® , Terex Ecotec ® , Terex Finlay ® , Terex Washing Systems, Terex MPS, Terex Jaques ® , Terex Advance ® , Terex Conveying Systems, ProStack tm and Terex Bid-Well ® brand names and business lines.

We market our MP products principally under the Terex ® , Powerscreen ® , Fuchs ® , EvoQuip ® , Canica ® , Cedarapids ® , CBI ® , Simplicity ® , Franna ® , Terex Ecotec ® , Finlay ® , Terex Washing Systems, Terex MPS, Terex Jaques ® , Terex Advance ® , ProStack tm , Terex Bid-Well ® , MDS tm and Terex Recycling Systems brand names and business lines.

MP has the following significant manufacturing operations:

• Mobile crushers, mobile screens and washing systems are manufactured in Omagh and Dungannon, Northern Ireland;

• Mobile crushers, mobile screens, base crushers, base screens, modular and wheeled crushing and screening plants, track conveyors and washing systems are manufactured in Hosur, India;

• Mobile crushers are manufactured in Omagh, Northern Ireland;

• Mobile screens and washing systems are manufactured in Dungannon, Northern Ireland;

• Mobile crushers, mobile screens, base crushers, base screens, modular and wheeled crushing and screening plants, track conveyors, washing systems and pick and carry cranes are manufactured in Hosur, India;

• Modular, mobile and static crushing and screening equipment and base crushers are manufactured in Oklahoma City, Oklahoma;

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• Crushing and screening equipment is manufactured in Durand, Michigan;

• Crushing chambers are manufactured in Coalville, England;

• Tracked conveyors and telescopic wheeled conveyors are manufactured in Campsie, Northern Ireland;

• Mobile crushers and crushing chambers are manufactured in Coalville, England;

• Wood processing, biomass and recycling equipment systems, mobile screens and tracked conveyors are manufactured in Campsie, Northern Ireland;

• Fabrications, sub-assemblies and steel kits are manufactured in Ballymoney, Northern Ireland;

• Wood processing, biomass and recycling equipment systems are manufactured in Newton, New Hampshire, Dungannon, Northern Ireland and Campsie, Northern Ireland;

• Wood processing, biomass and recycling equipment systems are manufactured in Newton, New Hampshire;

• Material handlers are manufactured in Bad Schönborn, Germany;

• Concrete pavers and tracked conveyors are manufactured in Canton, South Dakota;

• Concrete pavers are manufactured in Canton, South Dakota;

• Front discharge concrete mixer trucks are manufactured in Fort Wayne, Indiana;

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• Tower cranes are manufactured in Fontanafredda, Italy;

• Mobile crushers and mobile screens are manufactured in Jiading, China;

• Mobile and static trommel screens are manufactured in Monaghan, Ireland.

We have North American distribution centers in Louisville, Kentucky and Southaven, Mississippi and service centers in Australia, Thailand, Turkey and Malaysia.

We may assist customers in their rental, leasing and acquisition of our products through Terex Financial Services (“TFS”).

TFS uses its equipment financing experience to facilitate financial products and services to assist in the acquisition of our equipment.

TFS continually evaluates the level to which it utilizes third party funding versus providing direct customer financing to meet its business objectives.

In the United States and on a limited basis in China, TFS originates and services financing transactions directly with end-user customers, distributors and rental companies.

TFS uses its equipment financing experience to facilitate financial products and services to assist customers in the acquisition of our equipment.

On a global basis, TFS facilitates financing transactions directly between (i) end-user customers, distributors and rental companies and (ii) third-party financial institutions, providing recourse in certain circumstances.

Most of the transactions are fixed and floating rate loans;

however, TFS also provides sales-type leases, operating leases and rentals.

In the normal course of business, loans and leases are sold to third party financial institutions.

Increasingly, and on a global basis, TFS facilitates financing transactions directly between our customers and third party financial institutions, providing recourse in certain circumstances.

however, TFS also facilitates sales-type leases, operating leases and rentals.

In addition, wholesale financing may be arranged between dealers and distributors who sell our equipment and financial institutions with which TFS has established relationships.

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This provides a basis to project future values of equipment for the underwriting of leases or loans.

These secondary market sales channels are also used for re-marketing any equipment which is returned at end of lease, or is repossessed in case of a customer default.

When equipment is received, TFS uses the resale channel which maximizes proceeds and/or mitigates risk for Terex and our funding partners .

These secondary market sales channels may also be used for re-marketing any equipment which is returned at end of lease, or is repossessed in case of a customer default.

If equipment is received, TFS uses the resale channel which maximizes proceeds and/or mitigates risk for Terex and our funding partners.

DISCONTINUED OPERATIONS

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We believe these actions were necessary to execute our strategy.

See Note D – “Discontinued Operations and Assets and Liabilities Held for Sale” in the Notes to Consolidated Financial Statements for further information regarding dispositions and our discontinued operations.

See Note D – “Acquisitions and Discontinued Operations” in the Notes to Consolidated Financial Statements for further information regarding dispositions and our discontinued operations.

BUSINESS STRATEGY

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Customer ROIC is a key focus of our organization and is central to our ability to generate returns for investors.

We operate our business based on our value system, “The Terex Way.” The Terex Way values shape the culture of our Company and reflect our collective commitment to and understanding of what it means to be a part of Terex.

We operate our Company based on our value system, “The Terex Way.” The Terex Way values shape the culture of our Company and reflect our collective commitment to and understanding of what it means to be a part of Terex.

The Terex Way is based on six key values:

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We are committed to maintaining high ethical standards in all of our business dealings and we never sacrifice our integrity for profit.

Respect incorporates concern for safety, health, teamwork, diversity, inclusion and performance.

Respect incorporates concern for safety, health, teamwork, diversity, equity, inclusion and performance.

We treat all our team members, customers and suppliers with respect and dignity.

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We comply with all laws, respect all people’s values and cultures, and are good global, national and local citizens.

From 2016 - 2019, Terex pursued a strategy based on three key themes:

Focus the portfolio on businesses best positioned to generate returns above the cost of capital through the cycle.

Simplify company structure, systems and footprint to improve efficiency and enhance global competitiveness.

Execute to Win , driving process discipline, execution rigor, and accountability in core processes.

The “Focus” theme concentrated our business portfolio in product categories where we are among the market leaders.

Where we were not among the market leaders our strategy has been to either divest those product lines or pursue a business strategy which we believe will enable us to become a market leader.

Work related to this strategic theme involved review of all businesses in the portfolio from the perspectives of market attractiveness and competitive position.

Several portfolio actions were taken as a result, including disposition of our Material Handling and Port Solutions business (“MHPS”) and Demag, and the outcome was our current two-segment company in which greater than 90% of remaining businesses are top three in their respective categories and in which all remaining businesses have the demonstrated ability to sustainably out-earn the cost of capital.

The “Simplify” theme centered on complexity reduction and cost management.

This involved efforts to flatten and streamline the organization.

We undertook finance initiatives to simplify the way that we measure and manage the Company day-to-day and simplified the Company’s manufacturing footprint.

The “Execute to Win” theme focused on new process disciplines and on executing step change improvements in three core process areas:

Strategic Sourcing, Commercial Excellence, and Life Cycle Solutions.

Core teams were established in each area, and these teams drove programmatic changes across all businesses in the Company.

During 2020, we transitioned our “Focus, Simplify, Execute to Win” strategy to its next phase of “Execute, Innovate, Grow”.

The “Execute” theme continues the progress made with “Execute to Win”, while intensifying process discipline and improving measurement and accountability.

We have now re-embedded responsibility for Strategic Sourcing, Commercial Excellence, and Lifecycle Solutions into our business segments, but the team members responsible for such are closely networked to one another and continue to share best practices.

We are also implementing several new operational processes and enabling systems within the Company as part of the “Execute” theme.

Each business in our Company is unique, but all businesses are managed to a common set of expectations in three broad thematic areas, as defined by our “Execute, Innovate, Grow” operating framework.

The “Execute” theme involves expectations related to core operating processes and accountabilities.

We expect our businesses to deploy processes that meet local needs while delivering a level of performance and predictability that is consistent with effective operations.

These expectations are fulfilled differently by the various Terex businesses, but the core principles are the same.

For example, our Genie business is managed to a defined set of processes that we call the Genie Business System.

Our Materials Processing segment is managed to a similar set of processes that we call the MP Operating System.

Both are key to delivering excellence across all functions within our operations.

We feel that managing this way is key to appropriately balancing consistency and autonomy in our Company.

Process discipline is important to efficient operation, but local control is important to the effectiveness with which business processes are implemented.

The “Innovate” theme focuses on purposeful development of step-change improvements in Terex offerings and in the efficiency with which these offerings are executed and supported.

When we talk about innovation at Terex, we mean doing things significantly better tomorrow than they have been done in the past by harnessing new thinking and applying technology in new and creative ways.

While digitalization plays an important role in this and many of the innovations we currently pursue, there are many other aspects of this strategy that involve non-digital changes to the design of our products and improved ways of doing things.

The “Grow” theme is, in many ways, the outcome of doing “Execute” and “Innovate” well.

Innovation at Terex means doing things significantly better tomorrow than they have been done in the past by harnessing new thinking and applying technology in new and creative ways.

Digitalization plays an important role in many of the innovations we pursue, but there are other aspects of this strategy that involve non-digital changes to the design of our products and improved ways of doing things.

The “Grow” theme is the outcome of doing “Execute” and “Innovate” well.

We will successfully and profitably grow when we operate efficiently, apply new thinking in creating value for customers and take on new challenges through business investments (i.e.

new category development, new geographic development).

We also see a role for increased inorganic investment, smartly adding scope or depth to our Company via acquisitions.

We are actively rebuilding our inorganic investment pipeline, with an eye towards adding new dimensions to the Company portfolio and applying our skills as a manager of specialized machinery businesses in new and complementary domains.

new category and geographic development).

We also see a role for increased inorganic investment by adding scope or depth to our Company via acquisitions.

We are actively building our inorganic investment pipeline, with an eye towards adding new dimensions to the Company portfolio and applying our skills as a manager of specialized machinery businesses in new and complementary domains.

Our Disciplined Capital Allocation approach remains an important part of our overall strategy, including maintenance of an optimal capital structure (~2.5 average net debt to EBITDA over the cycle), growth investments, restructuring investments and efficient return of capital to shareholders via dividends and share repurchases.

Successful pursuit of the “Execute, Innovate, Grow” strategy will shape the direction of our Company over the coming years, much in the same way that “Focus, Simplify, Execute to Win” shaped our direction between 2016 and 2019.

Successful pursuit of the “Execute, Innovate, Grow” strategy will shape the direction of our Company over the coming years.

Terex is a diverse company that works collaboratively to deliver business performance efficiently and effectively.

We balance the independence of our businesses with the benefits of total Company scale, and our ability to do this is central to the style of management in our Company.

We balance the independence of our businesses with the benefits of total Company scale, which is central to how we manage our Company.

AERIAL WORK PLATFORMS

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Materials processing equipment is used in processing aggregate materials for building applications and is also used in the quarrying, mining, construction, demolition, recycling, landscaping and biomass production industries.

Our materials processing equipment includes crushers, screens and feeders, washing systems and conveyors as well as wood and biomass chippers and grinders, concrete mixers and pavers.

Our materials processing equipment includes crushers, screens, trommels and feeders, washing systems and conveyors as well as wood and biomass chippers and grinders, concrete mixers and pavers.

We manufacture a range of jaw, impactor (both horizontal and vertical shaft) and cone crushers, as well as base crushers for integration within mobile, modular and static plants.

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Because many variables can cause changes in backlog and these changes may or may not be of any significance, we consequently view backlog as an important, but not necessarily determinative, indicator of future results.

Our overall backlog amounts at December 31, 2020 increased $267.8 million from our backlog amounts at December 31, 2019, due to higher orders across all business segments.

Our overall backlog amounts at December 31, 2021 increased $1,640.8 million from our backlog amounts at December 31, 2020, due to higher orders across all business segments as our customers have increased capital spending in response to an improving global economic outlook.

AWP segment backlog at December 31, 2021 increased approximately 137% from our backlog amounts at December 31, 2020.

This increase from the prior year was driven primarily by customer optimism about a recovery following fleet reductions and delayed capital expenditures during 2020 in Western Europe and to a lesser extent North America and China.

This increase from the prior year was driven by robust demand in all global markets as bookings continue to outpace billings.

MP segment backlog at December 31, 2021 increased approximately 98% from our backlog amounts at December 31, 2020.

This increase from the prior year was driven primarily by higher demand in our aggregates, concrete and cranes businesses in North America and to a lesser extent Western Europe and Asia Pacific.

We distribute our products through a global network of dealers, rental companies, major accounts and direct sales to customers.

This increase from the prior year was driven primarily by higher demand across all MP businesses primarily in North America, Western Europe and Asia Pacific.

We distribute our products through a global network of independent distributors, rental companies and direct sales to customers.

AERIAL WORK PLATFORMS

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MATERIALS PROCESSING

We distribute our products through a global network of independent distributors, rental companies, major accounts and direct sales to customers.

We distribute our products through a global network of independent distributors, rental companies and direct sales to customers.

RESEARCH, DEVELOPMENT AND ENGINEERING

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We have also established competency centers that support entire segments from single locations in certain fields such as control systems.

Our businesses also assess global trends to understand future needs of our customers and help us decide which technologies to implement in future development projects.

Our businesses assess global trends to understand future needs of our customers and help us decide which technologies to implement in future development projects.

In addition, our engineering center in India supports our engineering teams worldwide through new product design, existing product design improvement and development of products for local markets.

Continually monitoring our materials, manufacturing and engineering costs is essential to identify possible savings, then leverage those savings to improve our competitiveness and our customers’ return on investment.

Continually monitoring our materials, manufacturing and engineering costs is essential to identifying possible savings, which then enables us to leverage those savings to improve our competitiveness and our customers’ return on investment.

Our research, development and engineering expenses are primarily incurred to develop (i) additional applications and extensions of our existing product lines to meet customer needs, such as the telematics application to remotely monitor and manage our products, and take advantage of growth opportunities, and (ii) customer responsive enhancements and continuous cost improvements of existing products.

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They take equipment technology from the developed markets and translate it to appropriate technology for developing markets using the experience and cultural understanding of engineering teams native to those markets.

Product change driven by compliance with new regulations and environmental standards continues to be a focus of the Company, including the newest diesel engine emission reduction program introduced in Europe, known as Stage V, which is driving further engine emissions related product development.

We are active in the development of incorporating alternative power solutions within our different product lines as our customers are seeking out products that operate on battery-electric and fuel-electric hybrid options.

With the increased global awareness and customer demand for products that are not powered by carbon-based fuels, we continue to develop and incorporate alternative power solutions within our different product lines.

Across our product range depending on product and application, various solutions are being deployed including battery-electric, fuel-electric hybrid and plug-in hybrids.

In parallel to this we continue to research and evaluate alternative fuel options that may become viable solutions for our products in the future.

Product innovation has become a core element of our growth strategy.

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We compete with other manufacturers based on many factors, particularly price, performance and product reliability.

We generally operate under a best value strategy, where we attempt to offer our customers products designed to improve customers’ return on invested capital.

We generally operate under a best value strategy, where we attempt to offer our customers products designed to improve Customer ROIC.

However, in some instances, customers may prefer the pricing, performance or reliability aspects of a competitor’s product despite our product pricing or performance.

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Boom Lifts Aichi, Dingli, Haulotte, JCB, Linamar (Skyjack), Oshkosh (JLG) and Xtreme/Tanfield (Snorkel)

Scissor Lifts Dingli, Haulotte, JCB, Oshkosh (JLG), Linamar (Skyjack), LGMG and Manitou and Xtreme/Tanfield (Snorkel)

Scissor Lifts Dingli, Haulotte, JCB, Linamar (Skyjack), LGMG, Manitou, Oshkosh (JLG) and Xtreme/Tanfield (Snorkel)

Utility Equipment Altec, Dur-A-Lift, Posi+ and Time Manufacturing

Telehandlers CNH, JCB, Manitou (Gehl), Merlo and Oshkosh (JLG, Skytrak, Caterpillar and Lull brands)

Utility Equipment Altec and Time Manufacturing

Materials Processing Crushing & Screening Equipment Astec Industries, Deere (Kleeman), Keestrack, Metso, Portafill, Sandvik and Rubble Master

Washing Systems Azfab, CDE Global, Matec, McLanahan, Metso, Phoenix Process Equipment, Superior and Weir/Trio

Wood Processing, Biomass and Recycling Equipment Astec Industries, Bandit, Doppstadt, Eggersmann, Jenz, Komptech, Morbark and Vermeer

Wood Processing, Biomass, Recycling Equipment and Trommels Astec Industries, Bandit, Doppstadt, Eggersmann, Jenz, Komptech, Morbark and Vermeer

Conveyors Astec/Telestack, Deere (Kleeman), Edge, Metso/McCloskey, Puzzulona Thor, Superior and Weir/Trio

Material Handlers Atlas, Caterpillar, Liebherr and Sennebogen

Concrete Pavers Allen Equipment, Deere (Wirtgen), Gomaco, Guntert & Zimmerman and Power Curbers

Concrete Pavers Allen Engineering, Gomaco, Guntert & Zimmerman and Power Curbers

Concrete Mixer Trucks Kimble and Continental Manufacturing, McNeilus and Oshkosh

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As part of The Terex Way, and our Zero Harm Safety and Environmental culture, we are committed to providing a safe and healthy environment for our team members, and strive to provide quality products that are safe to use and operate in an environmentally conscious and respectful manner.

Safety is a top priority, not only for our team members, but also our customers.

Terex has a longstanding commitment to designing, manufacturing, and selling safe and efficient products.

Our safety standards and practices are rigorous.

We collaborate with customers to design features that help keep operators safe, improve working environments, and help maintain equipment uptime and utilization.

During the COVID-19 pandemic, we are taking appropriate precautions and implementing safeguards to protect our team members while they continue to meet our customers' needs around the world.

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We are dedicated to ensuring that safety and health hazards are adequately addressed through appropriate work practices, training and procedures.

We are committed to reducing lost time injuries and working towards a world-class level of safety practices in our industry.

We are committed to reducing injuries and working towards a world-class level of safety practices in our industry.

We are dedicated to product safety when designing and manufacturing our equipment.

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We are aware of global discussions regarding climate change and the impact of greenhouse gas emissions on global warming.

We are increasing our production of products that have lower greenhouse gas emissions in response to both regulatory initiatives and anticipated market demand trends.

For example, the newest diesel engine emission reduction program introduced in Europe, known as Stage V, is driving further engine emissions related product development.

Our segments also offer products that use plug-in electric hybrid technology to save fuel, reduce emissions and reduce noise in residential areas.

We are increasing our production of products that have lower greenhouse gas emissions in response to both regulatory initiatives and market demand.

We are active in the development of incorporating alternative power solutions within our different product lines.

Globally, job site regulations have become increasingly stringent, requiring quieter equipment with lower or zero emissions.

At the same time, for our Genie ® equipment, more job sites are requiring machines capable of working both outdoors and indoors.

Our customers want products that operate on battery electric and fuel-electric hybrid options.

Many Genie ® lift models offer all-electric or fuel-electric hybrid options that deliver quiet, emission-free performance, which is necessary for indoor working environments, as well as city centers with noise and emission restrictions.

We offer crushers and screens that can operate from electrical power supply lines to help reduce the use of fuel.

Hybrid solutions are also available on select utility aerial devices, cranes, and mixer trucks that use battery power to perform certain equipment functions without the engine running.

Overall, we believe these developments are the leading edge of much greater change to the way equipment in the future will be powered.

We have taken a lead on many of these developments within the industries we serve, and we will continue to evolve our approach to alternative, environmentally friendly equipment power as technical capabilities advance, solution economics improve, and customer demand for these solutions continues to increase.

Increasing laws and regulations dealing with the environmental aspects of the products we manufacture can result in significant expenditures in designing and manufacturing new forms of equipment that satisfy such new laws and regulations.

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Specifically, our businesses can experience stronger demand during the second quarter, as customers in the northern hemisphere make investments in time for the annual construction season (April to October).

In 2021, we expect sales to be the highest in the second quarter, and expect our earnings generated in the second half of the year to be slightly higher than the first half of the year.

Non-seasonal macro factors are also important and can surpass seasonal influences in importance in some years.

Entering 2022, for example, we expect supply chain challenges to have greater influence on our sales than historical seasonal trends.

As a result, in 2022, we expect sales to be highest in the second and third quarters, and expect our earnings generated in the second half of the year to be higher than the first half of the year.

WORKING CAPITAL

Our businesses are working capital intensive and require funding to purchase production and replacement parts inventories, expenditures to repair, replace and upgrade existing facilities, as well as funding to finance receivables from customers and dealers.

We have debt service requirements, including semi-annual interest payments on our outstanding notes and periodic interest payments on our bank credit facility and term loans.

We believe cash generated from operations, together with availability under our bank credit facility and cash on hand, provide us with adequate liquidity to meet our operating and debt service requirements.

Our businesses are working capital intensive and require funding to purchase production and replacement parts inventories and expenditures to repair, replace and upgrade existing facilities.

We have debt service requirements, including periodic interest payments on our outstanding debt.

We believe cash generated from operations, including cash generated from the sale of receivables, loans from our bank credit facilities and funds raised in capital markets, will provide us with adequate liquidity to comply with our financial covenants under our bank credit facility, continue to support internal operating initiatives and meet our operating and debt service requirements for at least the next 12 months from the date of issuance of this annual report.

– “Risk Factors” for a detailed description of the risks resulting from our debt and our ability to generate sufficient cash flow to operate our business.

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We are committed to Zero Harm, and we expect all team members to be committed to safety and continuous improvement in this area.

In 2016, Terex set the long-term goals of reaching a 0.2 lost time injury rate and 1.0 total recordable injury rate by 2024.

Through the end of 2020, our lost time injury rate has declined from 0.80 to 0.43 and our total recordable injury rate has declined from 3.58 to 1.50.

In 2016, Terex set the goals of reaching a 0.20 lost time injury rate and 1.00 total recordable injury rate by 2024.

We have made good progress since 2016 when our lost time injury rate was 0.80 and our total recordable injury rate was 3.82.

At the end of 2021, our lost time injury rate was 0.52 and our total recordable injury rate was 1.77.

Our aspirational goal will always be zero injuries, but these goals represent milestones along our journey to Zero Harm.

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We generally consider our relations with our team members to be good and we provide mechanisms such as surveys and helplines for our team members to provide their perspectives.

In 2021, 81% of team members participated in our company-wide global engagement survey.

Safety remained the highest rated survey category and we received positive net promoter scores.

We have a robust talent review process in which we assess talent strengths and opportunity areas, matching our team members’ career aspirations with the needs of the business.

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These programs are grounded in The Terex Way values and help participants build key skills.

Additional training programs are offered around specific topics such as Safety;

Diversity, Equity and Inclusion (“DEI”);

Technical Skills;

and Financial Fundamentals.

We have a strong performance management process that includes annually setting clear business and professional objectives, mid-year calibration, annual performance reviews and succession planning.

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We strive to be fair and impartial in our decisions, ensuring Equity within our workplace.

By doing so, we create a sense of Inclusion for all our team members.

We are committed to Diversity, Equity & Inclusion so we can make Terex the kind of place where every team member feels valued, listened to, and appreciated.

By doing so, we create a sense of Inclusion and belonging for all our team members.

We are committed to DEI so we can make Terex the kind of place where every team member feels valued, listened to and appreciated.

Our Company has a vibrant, global initiative to increase representation of women in our workplace because we recognize that women are often under-represented in manufacturing organizations such as ours.

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Having made progress against these goals, we have extended them for another five years.

In 2020, we committed to expand our primary Diversity, Equity & Inclusion focus areas to include race and ethnicity, to ensure that members of under-represented groups have a sense of belonging and can thrive within our organization.

We intentionally defined our Diversity, Equity & Inclusion aspirations, initially focusing on our U.S.

We have implemented actions to achieve our aspirations, by mobilizing a Diversity, Equity & Inclusion Advisory Committee that is focused on training, development, recruitment and inclusion.

We have started our training efforts with the Executive Leadership Team to ensure they have a thorough awareness and understanding of systemic racism and unconscious bias.

We are developing tools and resources for use at the site level to foster inclusion.

In 2020, we committed to expand our primary DEI focus areas to include race and ethnicity, to ensure that members of under-represented groups have a sense of belonging and can thrive within our organization.

We intentionally defined our DEI aspirations, initially focusing on our U.S.

We have set aspirations to increase the representation of non-majority team members in leadership, management, indirect manufacturing and indirect selling, general & administrative (“SG&A”) roles.

In 2021, we implemented actions to help achieve our aspirations, by creating a DEI governance structure that includes a DEI Governance Council;

regional DEI Councils in the Americas, Europe, the Middle East, Africa and Russia (EMEAR) and Asia Pacific;

our longstanding Women@Terex Steering Committee;

and eight global Affinity Groups.

The DEI Governance Council is sponsored by our Chief Executive Officer (“CEO”) and Chief Human Resources Officer;

our regional councils have Executive Leadership Team (“ELT”) level sponsorship from our segment Presidents.

Our DEI efforts are centered around recruitment, engagement, development and retention.

We have completed training for our ELT, senior leadership, managers and the HR community.

This training will be cascaded to our more junior managers and supervisors as well.

We continue to develop tools and resources for use at the individual and site level to foster inclusion.

For 2022, we are introducing a component to our annual incentive plan that will be focused on the achievement of specific DEI metrics.

AVAILABLE INFORMATION

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business