STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

STOCKHOLDERS’ EQUITY

Changes in Accumulated Other Comprehensive Income (Loss)

The table below presents changes in AOCI by component for the three months ended March 31, 2020 and 2019. All amounts are net of tax (in millions).


	Three Months Ended March 31, 2020																		Three Months Ended March 31, 2019
	CTA		Derivative Hedging Adj.		Debt & Equity Securities Adj.		Pension Liability Adj.		Total		CTA		Derivative Hedging Adj.		Debt & Equity Securities Adj.		Pension Liability Adj.		Total
Beginning balance	$	(208.2)	$	(0.8)	$	2.6	$	(51.1)	$	(257.5)	$	(225.6)	$	(4.4)	$	0.8	$	(55.6)	$	(284.8)
Other comprehensive income (loss) before reclassifications	(54.8)		(6.3)		(0.2)		2.6		(58.7)		(2.1)		(2.8)		0.8		(0.5)		(4.6)
Amounts reclassified from AOCI	—		2.1		—		0.4		2.5		—		1.7		—		0.6		2.3
Net Other Comprehensive Income (Loss)	(54.8)		(4.2)		(0.2)		3.0		(56.2)		(2.1)		(1.1)		0.8		0.1		(2.3)

Ending balance	$	(263.0)	$	(5.0)	$	2.4	$	(48.1)	$	(313.7)	$	(227.7)	$	(5.5)	$	1.6	$	(55.5)	$	(287.1)

Stock-Based Compensation

During the three months ended March 31, 2020, the Company awarded 1.4 million shares of restricted stock to its employees with a weighted average grant date fair value of $22.40 per share. Approximately 58% of these awards are time-based and vest ratably on each of the first three anniversary dates. Approximately 28% cliff vest at the end of a three-year period and are subject to performance targets that may or may not be met and for which the performance period has not yet been completed. Approximately 14% cliff vest and are based on performance targets containing a market condition determined over a three-year period.

The Company used the Monte Carlo method to determine grant date fair value of $21.09 per share for the awards with a market condition granted on February 26, 2020. The Monte Carlo method is a statistical simulation technique used to provide the grant date fair value of an award.

The following table presents the weighted-average assumptions used in the valuation:


	Grant date
	February 26, 2020
Dividend yields	2.12	%
Expected volatility	36.36	%
Risk free interest rate	1.14	%
Expected life (in years)	3

Share Repurchases and Dividends

In July 2018, Terex’s Board of Directors authorized the Company to repurchase up to an additional $300 million of the Company’s outstanding shares of common stock of which approximately $105 million was utilized prior to January 1, 2020. During the three months ended March 31, 2020, the Company repurchased 2.5 million shares for $54.6 million under this program. During the three months ended March 31, 2019, the Company did not repurchase shares under this program. In the first quarter of 2020, Terex’s Board of Directors declared a dividend of $0.12, which was paid to the Company’s shareholders. The Company previously announced that it has suspended further share repurchases and dividend payments for the remainder of 2020.