Paccar PCAR Truck Sales — Operating Lease Lease Income

Revenues from extended warranties, operating leases and other include optional extended warranty and repair and maintenance (R&M) service contracts which can be purchased for periods generally ranging up to five years. The Company defers revenue based on stand-alone observable selling prices when it receives payments in advance and generally recognizes the revenue on a straight-line basis over the warranty or R&M contract periods. See Note F, Product Support Liabilities, in the Notes to the Consolidated Financial Statements for further information. Also included are truck sales with an RVG accounted for as an operating lease. A liability is created for the residual value obligation with the remainder of the proceeds recorded as deferred revenue. The deferred revenue is recognized on a straight-line basis over the guarantee period, which typically ranges from three to five years. Deferred revenue related to trucks sold with an RVG was $22.9 at June 30, 2026. The Company expects to recognize approximately $5.7 of the remaining deferred revenue in 2026, $8.3 in 2027, $4.5 in 2028, $3.1 in 2029, $1.2 in 2030 and $.1 thereafter. For the three and six months ended June 30, 2026, total operating lease revenue from truck sales with RVGs was $4.5 and $9.5, respectively, compared to $4.2 and $7.3 for the three and six months ended June 30, 2025. The Company’s total commitment to acquire trucks at a guaranteed value for contracts accounted for as a lease was $43.5 at June 30, 2026.