LEASES

12 Months Ended

Dec. 31, 2023

Terex has operating leases for real property, vehicles and office and industrial equipment, generally expiring over terms from 1 to 15 years. Many of the leases held by Terex include options to extend or terminate the lease. Real property leases are used for office, administrative and industrial purposes. The base terms of these leases typically expire between 1 and 15 years, with options to renew between 2 and 15 years. Most of our renewal options are linked to market conditions and Terex cannot estimate how existing renewal options will affect the monthly payments. The vehicle leases mainly include cars and trucks. Term length for these leases typically varies between 1 and 7 years. Office and industrial equipment leases primarily include machinery used for conducting business at office locations and manufacturing sites worldwide. Term length for these leases typically varies between 1 and 6 years.

Operating Leases

Operating lease cost consists of the following (in millions):


	Year Ended December 31,
	2023		2022		2021

Operating lease cost	$	37.7	$	32.4	$	31.3
Variable lease cost	4.7		4.3		4.1
Short-term lease cost	6.1		4.6		4.3
Total operating lease costs	$	48.5	$	41.3	$	39.7

Variable lease costs are expensed as incurred and are not included in the determination of right-of-use assets or lease liabilities. Operating lease obligations consist primarily of commitments to rent real properties.

Supplemental balance sheet information related to leases (in millions, except lease term and discount rate):


	December 31,
	2023			2022
Operating lease right-of-use assets included within Other assets	$	126.0		$	89.4

Current maturities of operating leases included within Other current liabilities	$	28.4		$	26.3
Non-current operating leases included within Other liabilities	92.4			62.8
Total operating lease liabilities	$	120.8		$	89.1

Weighted average discount rate for operating leases	5.69		%	4.89		%
Weighted average remaining operating lease term in years	5			5

Maturities of operating lease liabilities (in millions):



2024	$	37.0
2025	31.3
2026	25.8
2027	17.8
2028	12.9
Thereafter	19.8
Total undiscounted operating lease payments	144.6
Less: Imputed interest	(23.8)
Total operating lease liabilities	120.8
Less: Current maturities of operating lease liabilities	(28.4)
Non-current operating lease liabilities	$	92.4

Supplemental cash flow and other information related to operating leases (in millions):


	December 31,
	2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	46.5	$	31.3
Operating right-of-use assets obtained in exchange for operating lease liabilities	$	67.7	$	20.9