TEREX CORPTEX

TEREX CORP Leases Disclosure

10-KFiled Feb 13, 20262 min read
LEASES
Terex has operating leases for real property, vehicles and office and industrial equipment, generally expiring over terms from 2 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 2 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 3 and 5 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 2 and 7 years.
Operating Leases

Operating lease cost consists of the following (in millions):
Year Ended December 31,
202520242023
Operating lease cost$41 $38 $38 
Variable lease cost8 6 5 
Short-term lease cost5 8 6 
Total operating lease costs$54 $52 $49 

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,
20252024
Operating lease right-of-use assets included within Other assets
$126 $136 
Current maturities of operating leases included within Other current liabilities
$33 $31 
Non-current operating leases included within Other non-current liabilities
96 103 
Total operating lease liabilities$129 $134 
Weighted average discount rate for operating leases5.84 %5.80 %
Weighted average remaining operating lease term in years55
Maturities of operating lease liabilities (in millions):
2026$39 
202733 
202829 
202919 
20309 
Thereafter21 
Total undiscounted operating lease payments150 
Less: Imputed interest(21)
Total operating lease liabilities129 
Less: Current maturities of operating lease liabilities (33)
Non-current operating lease liabilities$96 
Supplemental cash flow and other information related to operating leases (in millions):
December 31,
20252024
Cash paid for amounts included in the measurement of operating lease liabilities$49 $41 
Operating right-of-use assets obtained in exchange for operating lease liabilities$23 $29 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 7, 2025
2023Feb 9, 2024
2022Feb 10, 2023
2021Feb 11, 2022
2020Feb 12, 2021
2019Feb 14, 2020
2018Feb 25, 2019
2016Feb 27, 2017
2015Feb 22, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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