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DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE
 3 Months Ended
Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE

MHPS

On May 16, 2016, Terex agreed to sell its Material Handling and Port Solutions (“MHPS”) business to Konecranes Plc, a Finnish public company limited by shares, (“Konecranes”) by entering into a Stock and Asset Purchase Agreement, as amended (the “SAPA”), with Konecranes. On January 4, 2017, the Company completed the disposition of its MHPS business to Konecranes (the “Disposition”), pursuant to the SAPA, effective as of January 1, 2017. In connection with the Disposition, the Company received 19.6 million newly issued Class B shares of Konecranes and approximately $835 million in cash after adjustments for estimated cash, debt and net working capital at closing and the divestiture of Konecranes’ Stahl Crane Systems business, which was undertaken by Konecranes in connection with the Disposition. During the three months ended March 31, 2017, the Company recognized a gain on the Disposition (net of tax) of $52.7 million.

During the three months ended March 31, 2017, the Company sold 7.5 million Konecranes shares for proceeds of approximately $272 million and recorded a $22.5 million net loss on sale of shares which included a loss of $9.3 million attributable to foreign exchange rate changes. The net loss is recorded as a component of Other income (expense) - net in the Condensed Consolidated Statement of Comprehensive Income (Loss).

On March 23, 2017, Konecranes declared a dividend of €1.05 per share to holders of record as of March 27, 2017, which was paid on April 4, 2017. During the three months ended March 31, 2017, the Company recognized dividend income of $13.5 million as a component of Other income (expense) - net in the Condensed Consolidated Statement of Comprehensive Income (Loss).

Loss Contract

Related to the Disposition, the Company and Konecranes entered into an agreement for Konecranes to manufacture certain crane products on behalf of the Company for an original period of 12 months, which was subsequently amended for a total of 36 months on October 11, 2017. The Company recorded an expense of $6.3 million related to losses expected to be incurred over the original agreement’s life during the three months ended March 31, 2017.

Cranes

The Company is actively seeking a buyer for its utility hot lines tools business located in South America and, accordingly, assets and liabilities are reported as held for sale. During three months ended March 31, 2017, a non-cash impairment charge of $1.2 million was recorded to adjust net asset value to estimated fair value within Selling, general and administrative expenses (“SG&A”) in the Condensed Consolidated Statement of Comprehensive Income (Loss).

Construction

In December 2016, the Company entered into an agreement to sell its Coventry, UK-based compact construction business.  During the three months ended March 31, 2017, the Company completed the sale of Coventry, UK-based compact construction business and remaining UK-based compact construction product lines and recognized a loss of $0.6 million within SG&A in the Condensed Consolidated Statement of Comprehensive Income (Loss) related to the sale.

During the three months ended March 31, 2017, the Company recognized a gain of $5.6 million within SG&A resulting from a post-closing adjustment related to the 2016 sale of its midi/mini excavators, wheeled excavators, and compact wheel loader business in Germany.

In March 2017, the Company signed a sale agreement with a buyer to sell its Indian compact construction business. The Company completed the sale during the second quarter of 2017.

The operating results for these construction product lines are reported in continuing operations, within the Corporate and Other category in our segment disclosures.

Assets and liabilities held for sale

Assets and liabilities held for sale consist of portions of the Company’s Cranes segment. Such assets and liabilities are classified as held for sale upon meeting the requirements of ASC 360 - “Property, Plant and Equipment”, and are recorded at lower of carrying amount or fair value less costs to sell. Assets are no longer depreciated once classified as held for sale.

The following table provides the amounts of assets and liabilities held for sale related to our Cranes segment recorded in the Condensed Consolidated Balance Sheet (in millions):
 
March 31, 2018
 
December 31, 2017
Assets
 
 
 
Cash and cash equivalents
$
3.5

 
$
3.6

Trade receivables – net
2.6

 
2.2

Inventories
2.3

 
1.7

Prepaid and other current assets
0.4

 
0.5

Impairment reserve
(4.4
)
 
(4.4
)
Included in Prepaid and other current assets
$
4.4

 
$
3.6

 
 
 
 
Property, plant and equipment – net
$
0.4

 
$
0.4

Intangible assets
2.9

 
2.9

Impairment reserve
(3.3
)
 
(3.3
)
Included in Other assets
$
—

 
$
—

 
 
 
 
Liabilities
 

 
 

Trade accounts payable
0.9

 
0.5

Accruals and other current liabilities
1.6

 
1.5

Included in Other current liabilities
$
2.5

 
$
2.0

 
 
 
 
Retirement plans and other non-current liabilities
0.8

 
0.7

Other non-current liabilities
0.3

 
0.3

Included in Other non-current liabilities
$
1.1

 
$
1.0



The following table provides amounts of cash and cash equivalents presented in the Condensed Consolidated Statement of Cash Flows (in millions):

 
March 31, 2018
 
December 31, 2017
Cash and cash equivalents:
 
 
 
Cash and cash equivalents - continuing operations
$
447.9

 
$
626.5

Cash and cash equivalents - held for sale
3.5

 
3.6

Total cash and cash equivalents
$
451.4

 
$
630.1



Cash and cash equivalents held for sale at March 31, 2018 and December 31, 2017 include no amounts which were not immediately available for use.

Gain (loss) on disposition of discontinued operations - net of tax

 
 
Three Months Ended
 
 
March 31,
 
 
2018
 
2017
 
 
Atlas
 
MHPS
Atlas
Total
Gain (loss) on disposition of discontinued operations
 
$
3.2

 
$
79.5

$
3.5

$
83.0

(Provision for) benefit from income taxes
 
(0.5
)
 
(26.8
)
(0.5
)
(27.3
)
Gain (loss) on disposition of discontinued operations – net of tax
 
$
2.7

 
$
52.7

$
3.0

$
55.7



During the three months ended March 31, 2018, the Company recognized a gain on disposition of discontinued operations - net of tax of $2.7 million, related to the sale of its Atlas heavy construction equipment and knuckle-boom cranes businesses (“Atlas”). The Company converted the earnout in the former agreement into a note receivable of $3.2 million, which is recorded in Other Assets in the Condensed Consolidated Balance Sheet. During the three months ended March 31, 2017, the Company recognized a gain on disposition of discontinued operations - net of tax of $55.7 million, $52.7 million of which is due to the sale of the MHPS business. The remaining $3.0 million is related to the sale of Atlas.