Terex TEX Interest charges incurred on customer deposits

Contract liabilities, referred to as Customer advances in the Condensed Consolidated Balance Sheets, relate to instances where a customer pays consideration in advance or when the Company is entitled to bill a customer in advance of recognizing the related revenue. Contract liabilities are reduced when the associated revenue from the contract is recognized. For the three months ended March 31, 2026, revenue related to contract liabilities outstanding as of December 31, 2025 was immaterial. During the same period, the Company recognized $44 million of revenue that was included in the contract liabilities balance of $359 million assumed in connection with the REV Transaction. See Note D - “Acquisitions and Divestitures” in our Condensed Consolidated Financial Statements for additional information regarding the REV Transaction. Within the Specialty Vehicles segment, customers earn interest on customer advances at a rate determined at contract inception. Interest charges incurred on customer advances was $3 million for the three months ended March 31, 2026 and is recorded in Interest expense in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.