DISCONTINUED OPERATIONS

MHPS

On May 16, 2016, Terex agreed to sell its Material Handling and Port Solutions (“MHPS”) business to 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 and six months ended June 30, 2017, the Company recognized a gain on the Disposition (net of tax) of $5.4 million and $58.1 million, respectively.

During the three months ended June 30, 2017, the Company sold 7.0 million Konecranes shares for proceeds of approximately $277.0 million and recorded a $61.1 million net gain on sale of shares which included a gain of $53.5 million attributable to foreign exchange rate changes. During the six months ended June 30, 2017, the Company sold 14.5 million Konecranes shares for proceeds of approximately $549 million and recorded a $38.6 million net gain on sale of shares which included a gain of $44.2 million attributable to foreign exchange rate changes. The net gain 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 six months ended June 30, 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 six months ended June 30, 2017.

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



	Three Months Ended
	June 30,
	2018								2017
	MHPS			Trucks		Total			MHPS
Gain (loss) on disposition of discontinued operations	$	(0.6	)	$	—	$	(0.6	)	$	—
(Provision for) benefit from income taxes	0.1			2.4		2.5			5.4
Gain (loss) on disposition of discontinued operations – net of tax	$	(0.5	)	$	2.4	$	1.9		$	5.4



	Six Months Ended
	June 30,
	2018										2017
	MHPS			Trucks		Atlas			Total		MHPS			Atlas			Total
Gain (loss) on disposition of discontinued operations	$	(0.6	)	$	—	$	3.2		$	2.6	$	79.5		$	3.5		$	83.0
(Provision for) benefit from income taxes	0.1			2.4		(0.5		)	2.0		(21.4		)	(0.5		)	(21.9		)
Gain (loss) on disposition of discontinued operations – net of tax	$	(0.5	)	$	2.4	$	2.7		$	4.6	$	58.1		$	3.0		$	61.1