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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) November 18, 1999
TEREX CORPORATION
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(Exact Name of Registrant as Specified in Charter)
Delaware 1-10702 34-1531521
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
500 Post Road East, Suite 320, Westport, Connecticut 06880
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (203) 222-7170
NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
On November 18, 1999, Terex Corporation ("Terex" or the "Company") announced
that it has resolved the Internal Revenue Service ("IRS") audit regarding the
Company's Federal income tax returns for the years 1987 through 1989. The
resolution of this audit will not require payment of tax and the outcome will
not be material either to the Company's financial condition or to the results of
operations.
As a result of the completion of the audit, the IRS will no longer challenge the
Company's right to use certain net operating loss carryovers ("NOLs").
Furthermore, because of the existence of substantial NOLs, Terex will not owe
any tax. However, due to timing issues associated with NOL carrybacks and the
substantial amount of time which has elapsed since the years in question, Terex
will owe an estimated $7.6 million in accumulated interest, all of which will be
tax deductible. Following this settlement, the Company will still retain
approximately $250 million in NOLs worldwide.
In December 1994, the Company had received an examination report from the IRS
proposing a large tax deficiency. The examination report raised several issues
including the substantiation for certain tax deductions and whether the Company
was able to use certain NOLs to offset taxable income. In April 1995, the
Company filed an administrative appeal to the examination. The completion of
this audit resolves this long-standing issue.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: November 18, 1999
TEREX CORPORATION
By: /s/ Joseph F. Apuzzo
Name: Joseph F. Apuzzo
Title: Chief Financial Officer
(Principal Financial Officer)
