PACCAR 2013 Annual Report Download

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2013 ANNUAL REPORT

Table of contents

  • Page 1
    2 0 1 3 A N N U A L R E P O R T

  • Page 2
    ... truck parts to its dealers through a worldwide network of Parts Distribution Centers. Finance and leasing subsidiaries facilitate the sale of PACCAR products in many countries worldwide. PACCAR manufactures and markets industrial winches under the Braden, Carco and Gearmatic nameplates. PACCAR...

  • Page 3
    ... PACCAR's products have earned, including 34 J.D. Power and Associates quality awards and the International Truck of the Year in Europe three times. PACCAR has redefined the industry with a new range of aerodynamic vehicles, complemented by a new family of PACCAR engines, and now manufactures trucks...

  • Page 4
    ... H T S 2013 2012  (millions except per share data) Truck, Parts and Other Net Sales and Revenues Financial Services Revenues Total Revenues Net Income Total Assets: Truck, Parts and Other Financial Services Truck, Parts and Other Long-Term Debt Financial Services Debt Stockholders' Equity Per...

  • Page 5
    ... outstanding operating efficiency. PACCAR increased its global diversification, opening a new DAF truck manufacturing facility in Ponta Grossa, Brasil, in October 2013. PACCAR's superior financial strength enabled the company to invest $661 million of capital and research and development in 2013 to...

  • Page 6
    ... FOR THE FUTURE countries (Brasil, Russia, India, China). The company's new DAF factory in Ponta Grossa, Brasil, was completed in October 2013 and has begun truck production. DAF and Kenworth increased their dealer locations in Russia to 38. The PACCAR Technical Center in Pune, India, partners...

  • Page 7
    ... Dealers 2013 Heavy Duty Commercial Truck of the Year award. One-half of PACCAR's revenues were generated outside the U.S. The company has realized excellent synergies globally in product development, sales and finance activities, purchasing and manufacturing. Leyland Trucks is the United Kingdom...

  • Page 8
    ... and global growth. His experience in South America has provided excellent insight into the market, which will benefit the company's long-term success in Brasil. I am pleased that the Board elected Ron Armstrong as Chief Executive Officer and Bob Christensen as President and Chief Financial Officer...

  • Page 9

  • Page 10
    ...factory builds DAF trucks for Brasil and other South American markets. Brasilian DAF dealers have invested in a modern distribution network in the country to support the growing customer base. DAF unveiled a new state-of-the-art 280,000 square-foot PACCAR Parts Distribution Center (PDC) in Eindhoven...

  • Page 11

  • Page 12
    ... in 2013 and has produced more than 960,000 trucks in its nine decade history. The new Kenworth T680 - the most aerodynamic heavy duty truck in its history - surpassed 8,800 customer deliveries in its first year of production. The T680's innovative design is powered by the PACCAR MX-13 engine, which...

  • Page 13

  • Page 14
    ... a 33% market share of the natural-gas-powered commercial truck market. Peterbilt has been manufacturing over-the-road, regional and vocational trucks featuring liquefied natural gas (LNG) and compressed natural gas (CNG) fuel vehicles since 1996. Peterbilt enhanced its Model 220 medium duty cabover...

  • Page 15
    ...in 2013 and successfully launched the TRP brand of all-makes aftermarket parts in Australia. PACCAR Australia customers are supported by a Kenworth and DAF dealer network of 42 locations providing customers industry-leading parts and service support. Kenworth trucks are designed and manufactured in...

  • Page 16
    ...-foot world-class training facility was developed to support the PACCAR MX-13 engine launch. KENMEX sold 2,500 vehicles in the Andean region of South America and introduced the award-winning DAF XF truck. KENMEX's 135 dealer locations in Mexico and the PACCAR Parts Distribution Center (PDC) in San...

  • Page 17
    ...CF truck in 2013. The DAF XF105 was voted Fleet Truck of the Year at the prestigious Motor Transport Awards 2013 ceremony in the United Kingdom. Leyland began production of the new DAF LF, CF and XF Euro 6 trucks in 2013. The DAF LF Euro 6 features a reconfigured chassis, aerodynamic exterior design...

  • Page 18
    ... Technical Center in Pune, India, enhanced its operations in 2013. The Technical Center accelerates new product and systems development by delivering industry-leading resources to PACCAR's global engineering, information technology and purchasing organizations. The DAF trucks manufactured in Brasil...

  • Page 19
    .... PACCAR's new PDC in Ponta Grossa, Brasil, was opened to support the launch of DAF trucks. PACCAR Parts sells high quality parts and TRP aftermarket parts for all makes of trucks, trailers and buses. PACCAR Parts Distribution Centers use advanced inventory management technology to ensure customers...

  • Page 20
    ...its engine family in 2013 with the introduction of the new PACCAR MX-11 engine. The MX-11 is a 10.8 liter engine that offers optimum fuel efficiency and quiet operation. The MX-11 is available in DAF CF and XF Euro 6 trucks with power ratings from 290 to 440 hp. PACCAR engine factories in Eindhoven...

  • Page 21
    ... over 50 years, PACCAR Financial Corporation (PFC) has facilitated the sale of premium Kenworth and Peterbilt trucks in North America. PFC finances 65.4% of dealer inventories and 22.0% of new Kenworth and Peterbilt Class 8 trucks sold or leased. PFC has enhanced its online services web-based portal...

  • Page 22
    ... a leader in introducing new technologies, such as advanced safety features, on-board telematics and alternative fueled vehicles. PacLease placed its 5,000th PACCAR MX-13 powered truck into North American service during 2013. Kenworth and Peterbilt trucks with PACCAR MX-13 engines represented 66% of...

  • Page 23
    ...-leading performance and fuel efficiency of Kenworth, Peterbilt and DAF trucks. PACCAR Technical Centers in Europe and North America advance the quality and competitiveness of PACCAR products worldwide. Technical experts in powertrain and vehicle development employ state-of-the-art product test and...

  • Page 24
    ... achieved 2013 recognition for development of an integrated vehicle configuration and sales application for DAF trucks. ITD's 730 employees collaborate with PACCAR divisions by using technology to enhance manufacturing, financial services and engineering design. This year ITD partnered with Kenworth...

  • Page 25
    ... 05 06 07 08 09 10 11 12 13 20% â- Total Western and Central Europe 16+ T Units PACCAR Market Share (percent) â- Total U.S. and Canada Class 8 Units PACCAR Market Share (percent) T O TA L A S S E T S GEOGRAPHIC REVENUE billions of dollars 22.5 billions of dollars 17.5 18.0 14.0 13.5 10...

  • Page 26
    ... 2008 in the Company's common stock and in the stated indices and assumes reinvestment of dividends.  350 300 250 200 150 100 50 0 2008 PACCAR Inc S&P 500 Index Peer Group Index 350 300 250 200 150 100 50 0 2013 2009 2010 2011 2012 2008 PACCAR Inc S&P 500 Index Peer Group Index 100 100...

  • Page 27
    ... Company's Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe and Australia. The Company's Other business is the manufacturing and marketing of industrial winches. Consolidated net sales and revenues of $17.12 billion in 2013...

  • Page 28
    ... for factors that may affect these outlooks. R E S U LT S O F O P E R AT I O N S :  ($ in millions, except per share amounts) Year Ended December 31, 2013 2012 2011 Net sales and revenues: Truck Parts Other Truck, Parts and Other Financial Services $ 13,002.9 2,822.2 123.8 15,948...

  • Page 29
    ...2013 Compared to 2012: Truck The Company's Truck segment accounted for 76% and 77% of total revenues for 2013 and 2012, respectively. ($ in millions) Year Ended December 31, 2013 2012 % CHANGE Truck net sales and revenues: U.S. and Canada Europe Mexico, South America, Australia and other Truck...

  • Page 30
    ... in 2013 compared to 1.8% in 2012. Parts The Company's Parts segment accounted for 16% of total revenues for both 2013 and 2012. ($ in millions) Year Ended December 31, 2013 2012 % CHANGE Parts net sales and revenues: U.S. and Canada Europe Mexico, South America, Australia and other Parts income...

  • Page 31
    ...change in net sales and revenues, cost of sales and revenues and gross margin between 2013 and 2012 for the Parts segment are as follows: ($ in millions) NET SALES COST OF SALES GROSS MARGIN 2012 Increase (decrease) Aftermarket parts volume Average aftermarket parts sales prices Average aftermarket...

  • Page 32
    ...revenues for 2013 and 2012, respectively. ($ in millions) Year Ended December 31,  2013 2012 % CHANGE New loan and lease volume: U.S. and Canada Europe Mexico and Australia New loan and lease volume by product: Loans and finance leases Equipment on operating lease New loan and lease unit...

  • Page 33
    ... and other expense: ($ in millions) Year Ended December 31, 2013 2012 Operating lease revenues Used truck sales and other Operating lease, rental and other revenues Depreciation of operating lease equipment Vehicle operating expenses Cost of used truck sales and other Depreciation and other...

  • Page 34
    ... other expense and related lease margin for the year ended December 31, 2013 are outlined below: OPERATING LEASE, RENTAL AND OTHER REVENUES DEPRECIATION AND OTHER EXPENSE LEASE MARGIN  ($ in millions) 2012 Increase (decrease) Operating lease impairments Used truck sales and other Results on...

  • Page 35
    ... flooding and granting one large fleet customer in the U.S. a one-month extension. The following table summarizes the Company's 30+ days past due accounts: At December 31, 2013 2012 Percentage of retail loan and lease accounts 30+ days past due: U.S. and Canada Europe Mexico and Australia Worldwide...

  • Page 36
    ... truck markets, except Europe. 2012 Compared to 2011: Truck The Company's Truck segment accounted for 77% of total revenues for both 2012 and 2011. ($ in millions) Year Ended December 31, 2012 2011 % CHANGE Truck net sales and revenues: U.S. and Canada Europe Mexico, South America, Australia...

  • Page 37
    ...in 2012 was 55,500 units compared to 61,100 units in 2011. The Company's market share was 11.4% in 2012, an increase from 9.0% in 2011. Sales and revenues in Mexico, South America, Australia and other markets increased in 2012 primarily due to higher new truck deliveries in Mexico and Australia from...

  • Page 38
    Parts The Company's Parts segment accounted for 16% of total revenues for both 2012 and 2011. ($ in millions) Year Ended December 31, 2012 2011 %  CHANGE Parts net sales and revenues: U.S. and Canada Europe Mexico, South America, Australia and other Parts income before income taxes Pre-tax ...

  • Page 39
    ... on operating lease New loan and lease unit volume: Loans and finance leases Equipment on operating lease Average earning assets: U.S. and Canada Europe Mexico and Australia Average earning assets by product: Loans and finance leases Dealer wholesale financing Equipment on lease and other Revenues...

  • Page 40
    ... in the value of the euro compared to the U.S. dollar. The following table summarizes operating lease, rental and other revenues and depreciation and other expense: ($ in millions) Year Ended December 31, 2012 2011 Operating lease revenues Used truck sales and other Operating lease, rental and...

  • Page 41
    ...the year ended December 31, 2012 are outlined below: ($ in millions) OPERATING LEASE, RENTAL AND OTHER REVENUES DEPRECIATION AND OTHER EXPENSE LEASE MARGIN 2011 Increase (decrease) Operating lease impairments Used truck sales and other Results on returned lease assets Average operating lease assets...

  • Page 42
    ... Europe Mexico and Australia Worldwide .3% 1.0% 1.5% .6% 1.1% 1.0% 3.4% 1.5% Worldwide PFS accounts 30+ days past due at December 31, 2012 of .6% improved from 1.5% at December 31, 2011 due to lower or the same past dues in all markets, reflecting a better operating environment for customers...

  • Page 43
    ... quality. Other Other includes the winch business as well as sales, income and expenses not attributable to a reportable segment, including a portion of corporate expense. Sales represent approximately 1% of consolidated net sales and revenues for 2012 and 2011. Other SG&A was $39.4 million in 2012...

  • Page 44
    ... used in 2012. Net new loan and lease originations in the Financial Services segment in 2013 were $307.6 million lower, reflecting a lower growth in the portfolio. In addition, net purchases of marketable securities were $179.4 million lower in 2013. Financing activities: Cash provided by financing...

  • Page 45
    ... in February 2014. Investments for property, plant and equipment in 2013 totaled $406.5 million compared to $509.7 million in 2012 as the Company invested in new products and building a new DAF factory in Brasil. Over the past decade, the Company's combined investments in worldwide capital projects...

  • Page 46
    ... the London Stock Exchange. The program was renewed in the second quarter of 2013 and is renewable annually through the filing of a new prospectus. In April 2011, PACCAR Financial Mexico registered a 10.00 billion peso medium-term note and commercial paper program with the Comision Nacional Bancaria...

  • Page 47
    ... Financial Services segment. The Company expects to fund its maturing Financial Services debt obligations principally from funds provided by collections from customers on loans and lease contracts, as well as from the proceeds of commercial paper and medium-term note borrowings. Purchase obligations...

  • Page 48
    ...equipment on operating leases in the Financial Services segment and residual value guarantee on trucks accounted for as operating leases in the Truck segment was $1.89 billion. A 10% decrease in used truck values worldwide, expected to persist over the remaining maturities of the Company's operating...

  • Page 49
    ... as a percentage of net sales and revenues in 2013, warranty expense would have increased by approximately $32 million. Pension Benefits Employee benefits are disclosed in Note L of the consolidated financial statements. The Company's accounting for employee pension benefit costs and obligations is...

  • Page 50
    ... of the Financial Services segment new business volume due to unit fluctuations in new PACCAR truck sales or reduced market shares; changes affecting the profitability of truck owners and operators; price changes impacting truck sales prices and residual values; insufficient supplier capacity or...

  • Page 51
    ..., TRUCK, PARTS AND OTHER: 2013 2012 2011 (millions, except per share data) Net sales and revenues Cost of sales and revenues Research and development Selling, general and administrative Interest and other expense (income), net Truck, Parts and Other Income Before Income Taxes FINANCIAL SERVICES...

  • Page 52
    ... OF COMPREHENSIVE INCOME Year Ended December 31, 2013 2012 (millions) 2011  Net income Other comprehensive income (loss): Unrealized gains (losses) on derivative contracts Gains (losses) arising during the period Tax effect Reclassification adjustment Tax effect Unrealized (losses...

  • Page 53
    ...TRUCK, PARTS AND OTHER: 2013 (millions) 2012 Current Assets Cash and cash equivalents Trade and other receivables, net Marketable debt securities Inventories, net Other current assets Total Truck, Parts and Other Current Assets Equipment on operating leases, net Property, plant and equipment, net...

  • Page 54
    ... debt Residual value guarantees and deferred revenues Other liabilities Total Truck, Parts and Other Liabilities $ 2,155.0 318.8 150.0 2,623.8 1,093.8 734.4 4,452.0 $ 2,073.2 2,073.2 150.0 903.5 674.6 3,801.3 FINANCIAL SERVICES: Accounts payable, accrued expenses and other Commercial paper and...

  • Page 55
    ... Year Ended December 31, OPERATING ACTIVITIES: 2013 2012 (millions) 2011 Net Income Adjustments to reconcile net income to cash provided by operations: Depreciation and amortization: Property, plant and equipment Equipment on operating leases and other Provision for losses on financial services...

  • Page 56
    ... and tax benefit Balance at end of year TREASURY STOCK, AT COST: Balance at beginning of year Purchases, shares: 2013-nil; 2012-4.2; 2011-9.2 Retirements Balance at end of year RETAINED EARNINGS: (162.1) 162.1 (337.6) 337.6 Balance at beginning of year Net income Cash dividends declared on...

  • Page 57
    ... from financing or leasing PACCAR products in the U.S., Canada, Mexico, Europe and Australia. PACCAR's sales and revenues are derived primarily from North America and Europe. The Company also operates in Australia and sells trucks and parts to customers in Asia, Africa, Middle East and South America...

  • Page 58
    ... The allowance for credit losses for Truck, Parts and Other was $2.4 and $3.2 for the years ended December 31, 2013 and 2012, respectively. Net charge-offs were $.2, $.3 and $1.1 for the years ended December 31, 2013, 2012 and 2011, respectively. Financial Services: The Company continuously monitors...

  • Page 59
    ... dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases as a normal part of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit...

  • Page 60
    ...Cost of sales and revenues include shipping and handling costs incurred to deliver products to dealers and customers. Equipment on Operating Leases: The Company's Financial Services segment leases equipment under operating leases to its customers. In addition, in the Truck segment, equipment sold to...

  • Page 61
    ...requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the consolidated financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if available under the applicable...

  • Page 62
    ... on the specific identification method. Gross realized gains were $2.0, $3.8 and $3.2, and gross realized losses were $.7, $.3 and $1.3 for the years ended December 31, 2013, 2012 and 2011, respectively. Marketable debt securities with continuous unrealized losses and their related fair values were...

  • Page 63
    ...369.0) $8,428.3 (112.6) (11.8) (5.6) $8,298.3 The net activity of sales-type finance leases, dealer direct loans and dealer wholesale financing on new trucks is shown in the operating section of the Consolidated Statements of Cash Flows since those receivables finance the sale of Company inventory.

  • Page 64
    ... to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating more than five trucks. All other customer retail accounts are...

  • Page 65
    ... EN TS December 31, 2013, 2012 and 2011 (currencies in millions)  DEALER WHOLESALE RETAIL 2011 CUSTOMER RETAIL OTHER * TOTAL Balance at January 1 Provision for losses Charge-offs Recoveries Currency translation and other Balance at December 31 *Operating lease and other trade receivables...

  • Page 66
    ...: 2013 2012 2011 Interest income recognized: Dealer wholesale Customer retail - fleet Customer retail - owner/operator .1 2.9 .9 $ 3.9 $ $ .1 1.2 .8 $ 2.1 .4 2.7 2.0 $ 5.1 $ Credit Quality: The Company's customers are principally concentrated in the transportation industry in North America...

  • Page 67
    ... on non-accrual status. The tables below summarize the Company's finance receivables by credit quality indicator and portfolio class. DEALER CUSTOMER RETAIL RETAIL FLEET OWNER / OPERATOR TOTAL At December 31, 2013 WHOLESALE Performing Watch At-risk $1,576.9 31.1 8.5 $1,616.5 $1,520.1 5.5 $1,525...

  • Page 68
    ... collateral for the loans, finance leases and equipment under operating lease. The Company records the vehicles as used truck inventory included in Financial Services other assets on the Consolidated Balance Sheets. The balance of repossessed inventory at December 31, 2013 and 2012 was $13.7 and $20...

  • Page 69
    ... 31, 2013, 2012 and 2011 (currencies in millions)  When the equipment is sold subject to an RVG, the full sales price is received from the customer. A liability is established for the residual value obligation with the remainder of the proceeds recorded as deferred lease revenue. These...

  • Page 70
    ....9 5,765.3 $8,274.2 1.1% 5.5% 2.1% 1.8% $3,325.0 237.7 3,562.7 4,167.4 $7,730.1 The commercial paper and term notes of $8,032.1 and $7,492.4 at December 31, 2013 and 2012 include a net effect of fair value hedges and unamortized discounts of $1.5 and $6.3, respectively. The effective rate is the...

  • Page 71
    .... For the years ended December 31, 2013, 2012 and 2011, the Company capitalized interest on borrowings of $10.3 in Truck, Parts and Other in each respective year. The primary sources of borrowings in the capital markets are commercial paper and medium-term notes issued in the public markets, and to...

  • Page 72
    ... financial position. At December 31, 2013, PACCAR had standby letters of credit of $20.6, which guarantee various insurance and financing activities. At December 31, 2013, PACCAR's financial services companies, in the normal course of business, had outstanding commitments to fund new loan and lease...

  • Page 73
    ... treasuries is determined using the market approach and is based on the quoted prices in active markets. These securities are categorized as Level 1. The fair value of commingled trust funds is determined using the market approach and is based on the unadjusted net asset value per unit as determined...

  • Page 74
    ...: 2013 2012  Change in projected benefit obligation: Benefit obligation at January 1 Service cost Interest cost Benefits paid Actuarial (gain) loss Currency translation and other Participant contributions Projected benefit obligation at December 31 Change in plan assets: Fair value of plan...

  • Page 75
    ... above approximates the multi-employer pension expense for each of the years ended December 31, 2013, 2012 and 2011, respectively. Metal and Electrical Engineering Industry Pension Fund is a multi-employer union plan incorporating all DAF employees in the Netherlands and is covered by a collective...

  • Page 76
    ...designated amounts on behalf of participant employees. The largest plan is for U.S. salaried employees where the Company matches a percentage of employee contributions up to an annual limit. The match was 5% of eligible pay in 2013, 2012 and 2011. Other plans are located in Australia, Brasil, Canada...

  • Page 77
    ... 31, 2013 2012 Assets: Accrued expenses Postretirement benefit plans Net operating loss carryforwards Allowance for losses on receivables Other Valuation allowance Liabilities: Financial Services leasing depreciation Depreciation and amortization Postretirement benefit plans Other Net deferred tax...

  • Page 78
    ...; the company does not expect the net impact of these negotiations will be material to its effective tax rate. As of December 31, 2013, the United States Internal Revenue Service has completed examinations of the Company's tax returns for all years through 2010. The Company's tax returns...

  • Page 79
    ...on marketable debt securities: Marketable debt securities Investment income Tax expense After-tax income increase Pension plans: Truck, Parts and Other Prior service costs Cost of sales and revenues $.4, SG&A $.6, R&D $.3 Actuarial loss Cost of sales and revenues $21.4, SG&A $20.3 Financial Services...

  • Page 80
    ... fair value of derivative financial instruments: At December 31, ASSETS 2013 LIABILITIES ASSETS 2012 LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets Deferred taxes and other liabilities Foreign-exchange contracts: Truck, Parts...

  • Page 81
    ... hedged. The expense or (income) recognized in earnings related to fair value hedges was included in interest and other borrowing expenses in the Financial Services segment of the Consolidated Statements of Income as follows: Year Ended December 31, 2013 2012 2011 Interest-rate swaps Term notes...

  • Page 82
    ...Year Ended December 31, INTERESTRATE CONTRACTS 2013 FOREIGNEXCHANGE CONTRACTS 2012 INTERESTRATE CONTRACTS FOREIGNEXCHANGE CONTRACTS INTERESTRATE CONTRACTS 2011 FOREIGNEXCHANGE CONTRACTS Truck, Parts and Other: Cost of sales and revenues Interest and other expense (income), net Financial Services...

  • Page 83
    ...exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2. Derivative Financial Instruments: The Company's derivative...

  • Page 84
    ..., 2012 and 2011 (currencies in millions) The Company's assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows: At December 31, 2013 LEVEL  1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities U.S. corporate...

  • Page 85
    ... amounts approximate fair value. Financial Services Net Receivables: For floating-rate loans, wholesale financings, and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash...

  • Page 86
    ...years if the Company's earnings per share growth over the same five year period meet or exceed certain performance goals. No matching shares were granted under this program in 2013, 2012 or 2011. The fair value of the performance based restricted stock awards were determined based on the stock price...

  • Page 87
    ... Financial Services segment includes finance and leasing of primarily PACCAR products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe. Other: Included in Other is the Company's industrial winch manufacturing business...

  • Page 88
    ... A N CI A L STATEM EN T S December 31, 2013, 2012 and 2011 (currencies in millions) Business Segment Data 2013 2012 2011 85 Net sales and revenues: Truck Less intersegment External customers Parts Less intersegment External customers Other Financial Services $13,627.7 (624.8) 13,002.9 2,868...

  • Page 89
    ... the three years in the period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), PACCAR Inc's internal control over financial reporting as...

  • Page 90
    ... express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable...

  • Page 91
    ... 2013 2012 2011 (millions except per share data) 2010 2009 Truck, Parts and Other Net Sales Financial Services Revenues Total Revenues Net Income Net Income Per Share: Basic Diluted Cash Dividends Declared Per Share Total Assets: Truck, Parts and Other Financial Services Truck, Parts and...

  • Page 92
    ... except per share data) 2013 Truck, Parts and Other: Net sales and revenues Cost of sales and revenues Research and development Financial Services: Revenues Interest and other borrowing expenses Depreciation and other expense Net Income Net Income Per Share (b): Basic Diluted 2012 $3,631.2 3,189...

  • Page 93
    ... real and the Mexican peso (See Note O for additional information concerning these hedges). Based on the Company's sensitivity analysis, the potential loss in fair value for such financial instruments from a 10% unfavorable change in quoted foreign currency exchange rates would be a loss of $27...

  • Page 94
    ...Chief Executive Officer Ronald E. Armstrong President Robert J. Christensen Executive Vice President and Chief Financial Officer Daniel D. Sobic Executive Vice President Robert A. Bengston Senior Vice President T. Kyle Quinn Senior Vice President and Chief Information Officer David C. Anderson Vice...

  • Page 95
    ..., Mexico Factory: Mexicali, Baja California, Mexico PRODUCT TESTING, RESEARCH AND DEVELOPMENT PACCAR Financial Pty. Ltd. 64 Canterbury Road Bayswater, Victoria 3153 Australia PACCAR Technical Center Division Headquarters: 12479 Farm to Market Road Mount Vernon, Washington 98273 PACCAR of Canada...

  • Page 96
    ... the Corporate Secretary, PACCAR Inc, P.O. Box 1518, Bellevue, Washington 98009. It is also available online at www.paccar.com/investors/ investor_resources.asp, under SEC Filings or on the SEC's website at www.sec.gov. Annual Stockholders' Meeting April 29, 2014, 10:30 a.m. Meydenbauer Center 11100...

  • Page 97