PACCAR 2014 Annual Report Download

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2014 ANNUAL REPORT

Table of contents

  • Page 1
    2 0 1 4 A N N U A L R E P O R T

  • Page 2
    ... vehicles sold worldwide under the Kenworth, Peterbilt and DAF nameplates. PACCAR designs and manufactures diesel engines for use in its own products and for sale to third party manufacturers of trucks and buses. PACCAR distributes aftermarket truck parts to its dealers through a worldwide network...

  • Page 3
    ... H T S 2014 2013  (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 4
    ... year in 2014 as it achieved record revenues due to good truck markets in North America and excellent results in the financial services and aftermarket parts businesses. Customers renewed and expanded their fleets, reflecting strong freight demand. PACCAR's financial results benefited from global...

  • Page 5
    ... aftermarket customer services - enables PACCAR to pragmatically approach growth opportunities. We look forward to enhancing PACCAR's stellar reputation as a leading technology company in the capital goods and financial services marketplace.  MARK C. PIGOTT Executive Chairman Februar y 18, 2015

  • Page 6
    ... last five years have enhanced the capability of the company's manufacturing and parts facilities. In 2014, capital investments were $223 million and research and development expenses were $216 million. PACCAR launched new truck models and expanded its product range, invested in global expansion and...

  • Page 7
    .... The company's new DAF factory in Ponta Grossa, Brasil completed its first full year of truck production. PACCAR Parts increased parts sales to DAF and Kenworth dealers in Russia by 31%. The PACCAR Technical Center in Pune, India provided excellent support to PACCAR's global product and technology...

  • Page 8
    ... source in North America for Peterbilt and Kenworth trucks, financing 21% of dealer Class 8 sales in the U.S. and Canada in 2014. Strategically located used truck centers, interactive webcasts and targeted marketing enabled PFS to sell over 8,000 used trucks worldwide. PACCAR Financial Europe (PFE...

  • Page 9
    ... growth of the company's aftermarket parts business. PACCAR Financial is expected to perform well due to a good economy in North America and lower fuel prices. PACCAR's new range of vehicles, modern high technology factories and superb customer service in parts and financial services provide an...

  • Page 10

  • Page 11
    ... length. Kenworth's Chillicothe, Ohio and Renton, Washington assembly plants, and the PACCAR plant in Ste-Therese, Quebec increased truck production 30 percent in 2014. Thousands of customers enjoyed Kenworth "Right Choice" events as they experienced Kenworth's product quality, vehicle efficiency...

  • Page 12

  • Page 13
    ... Design, Lean Manufacturing Management, and Engineering and Product Technology Leadership. The Peterbilt Denton, Texas assembly facility delivered a record number of trucks in 2014 and has produced over 440,000 Peterbilt trucks since the factory opened in 1980. Peterbilt added 25 dealer locations...

  • Page 14

  • Page 15
    ... 75 new dealer facilities in Western, Central and Eastern Europe, Russia, South America and Asia. The new DAF XF Euro 6 is a global leader in transport efficiency, with advanced technologies, low operational costs and best-in-class performance. DAF's new range of Euro 6 vehicles have new interior...

  • Page 16
    ... of the TRP all-makes brand. Kenworth and DAF trucks are renowned in Australia for their reliability under the most challenging operating conditions. The Kenworth T409, equipped with the PACCAR MX-13 engine, offers unparalleled productivity with industry-leading performance and fuel efficiency.

  • Page 17
    ... vehicles to meet the new Euro 4 and Euro 5 emissions standards in Colombia and Chile. KENMEX's 235 dealer locations in Mexico and Latin America and the world-class PACCAR Parts Distribution Centers (PDC) in San Luis Potosi, Mexico and Santiago, Chile offer unrivaled customer support. The Kenworth...

  • Page 18
    ... vehicles to customers in Europe, Asia, Australia, the Middle East, Russia and the Americas in the year. Leyland's highly efficient 710,000 square-foot manufacturing facility features a technologically advanced production system which incorporates a robotic chassis paint system and electronic work...

  • Page 19
    ...for global production and aftermarket operations. The DAF assembly facility in Taiwan builds the full range of DAF XF, CF and LF models. DAF trucks assembled in DAF Brasil's Ponta Grossa plant are distributed by DAF's growing independent dealer network. PACCAR engineering teams in India support the...

  • Page 20
    ... Centers (PDC) worldwide during 2014, opening a new 40,000 square-foot PDC in Montreal, Canada to serve the expanding Eastern Canada market. PACCAR Parts' PDC in Ponta Grossa, Brasil supports DAF's growing dealer network in Brasil with deliveries of DAF, PACCAR Genuine and TRP products. The Kenworth...

  • Page 21
    ...440 horsepower. The MX-11 will be introduced in North America in 2016. PACCAR engine factories in the Netherlands and Mississippi represent technology leadership in commercial vehicle diesel engine production. PACCAR engines are standard in Kenworth, Peterbilt and DAF vehicles worldwide, where they...

  • Page 22
    ... worldwide in 2014. For over 50 years, PACCAR Financial Corp. (PFC) has facilitated the sale of premium Kenworth and Peterbilt trucks in North America. PFC financed 60 percent of dealer inventories and 21 percent of new Kenworth and Peterbilt Class 8 trucks sold or leased. PFC implemented a state...

  • Page 23
    ... provider in Mexico. PacLease also operates a fleet of 3,200 trucks and trailers in Europe. PacLease has one of the most innovative global truck leasing networks in the industry, providing customers with valueadded transportation services and premium-quality Kenworth, Peterbilt and DAF vehicles.

  • Page 24
    ... identify innovative designs that will further improve the industry-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. In 2015, PACCAR will complete...

  • Page 25
    ...data in PACCAR's initiative to minimize greenhouse gas emissions. ITD's 740 employees collaborate with PACCAR divisions in the application of new technologies to enhance manufacturing, financial services and engineering design. This year ITD partnered with DAF to develop a new truck configurator and...

  • Page 26
    ...Market Share (percent) T O TA L A S S E T S GEOGRAPHIC REVENUE billions of dollars 22.5 20.0 billions of dollars 18.0 16.0 13.5 12.0 9.0 8.0 4.5 4.0 0.0 05 06 07 08 09 10 11 12 13 14 0.0 05 06 07 08 09 10 11 12 13 14 â- Truck, Parts and Other â- Financial Services â- United States...

  • Page 27
    ... 31, 2009 in the Company's common stock and in the stated indices and assumes reinvestment of dividends.  250 PACCAR Inc S&P 500 Index Peer Group Index 250 200 200 150 150 100 100 50 2009 2010 2011 2012 2013 50 2014 2009 PACCAR Inc S&P 500 Index Peer Group Index 100 100 100...

  • Page 28
    ... the Kenworth and DAF nameplates. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Company's Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe and Australia. The...

  • Page 29
    ...,000 units in 2015. The production of DAF trucks in Brasil and the continued growth of the DAF Brasil dealer network will further enhance PACCAR's vehicle sales in South America. In 2015, PACCAR Parts sales are expected to grow 5-8% in North America, reflecting steady economic growth and high fleet...

  • Page 30
    ... on revenues reflect higher truck unit deliveries and improved price realization in the U.S. and Canada and lower R&D spending, partially offset by lower deliveries in Europe and Mexico. The Company's new truck deliveries are summarized below: Year Ended December 31, 2014 2013 % CHANGE U.S. Canada...

  • Page 31
    ... sales volume and ongoing cost controls. Parts The Company's Parts segment accounted for 16% of total revenues for both 2014 and 2013. ($ in millions) Year Ended December 31, 2014 2013 % CHANGE Parts net sales and revenues: U.S. and Canada Europe Mexico, South America, Australia and other Parts...

  • Page 32
    ... in net sales and revenues, cost of sales and revenues and gross margin between 2014 and 2013 for the Parts segment are as follows: ($ in millions) NET SALES COST OF SALES GROSS MARGIN 2013 Increase (decrease) Aftermarket parts volume Average aftermarket parts sales prices Average aftermarket parts...

  • Page 33
    ... revenues for 2014 and 2013, respectively. ($ in millions) Year Ended December 31, 2014 2013 %  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 34
    ... other expense: ($ in millions) Year Ended December 31, 2014 2013 Operating lease and rental 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 35
    ... in Australia, partially offset by improved portfolio performance across other markets. 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 reasons. Modifications...

  • Page 36
    ...for a large customer in the U.S. The following table summarizes the Company's 30+ days past due accounts: At December 31, 2014 2013 Percentage of retail loan and lease accounts 30+ days past due: U.S. and Canada Europe Mexico and Australia Worldwide .1% 1.1% 2.0% .5% .3% .7% 1.4% .5% Accounts 30...

  • Page 37
    ... except Canada. 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...

  • Page 38
    ...500 units in 2012. The Company's market share was a record 11.8% in 2013, an increase from 11.4% in 2012. Sales in Mexico, South America, Australia and other markets decreased in 2013 primarily due to fewer new truck deliveries in Colombia. The major factors for the changes in net sales and revenues...

  • Page 39
    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 before income taxes Pre-tax ...

  • Page 40
    ... Services The Company's Financial Services segment accounted for 6.9% and 6.4% of total 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...

  • Page 41
    ... other expense: ($ in millions) Year Ended December 31, 2013 2012 Operating lease and rental 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 42
    ... compared to 2012, due to lower provisions in all markets reflecting improved portfolio performance. 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 reasons...

  • Page 43
    ... 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 44
    ... primarily due to higher revenues and margins from parts operations, partially offset by lower revenues and margins from all foreign truck markets, except Europe. L I Q U I D I T Y A N D C A P I TA L R E S O U R C E S : ($ in millions) At December 31, 2014 2013 2012 Cash and cash equivalents...

  • Page 45
    ... in sales of goods and services in accounts receivable exceeding cash receipts. Investing activities: Cash used in investing activities of $2.15 billion in 2013 decreased $437.0 million from the $2.59 billion used in 2012. Net new loan and lease originations in the Financial Services segment in 2013...

  • Page 46
    ... facilities. Investments in 2014 were lower than 2013, as 2013 included higher spending for new product development and construction of the Eindhoven parts distribution center in Europe and the DAF Brasil factory. Over the past decade, the Company's combined investments in worldwide capital...

  • Page 47
    ... Company's European finance subsidiary, PACCAR Financial Europe, had â,¬366.9 million available for issuance under a â,¬1.50 billion medium-term note program registered with the London Stock Exchange. The program was renewed in the second quarter of 2014 and is renewable annually through the filing...

  • Page 48
    ... 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 are the Company's contractual commitments to acquire future production inventory and capital equipment. Other obligations include...

  • Page 49
    ... sales price of trucks returned under these contracts. Residual values are reviewed regularly and adjusted if market conditions warrant. A decrease in the estimated equipment residual values would increase annual depreciation expense over the remaining lease term. During 2014, 2013 and 2012, market...

  • Page 50
    ... as a percentage of net sales and revenues in 2014, warranty expense would have increased by approximately $36 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 51
    ... levels 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...

  • Page 52
    ...O NS O LI DAT E D STATEM EN TS O F I N CO M E 50 Year Ended December 31, TRUCK, PARTS AND OTHER: 2014 2013 (millions, except per share data) 2012 Net sales and revenues Cost of sales and revenues Research and development Selling, general and administrative Interest and other expense (income...

  • Page 53
    ... INCOME Year Ended December 31, 2014 2013 (millions) 2012 51 Net income Other comprehensive (loss) income: Unrealized gains (losses) on derivative contracts Gains (losses) arising during the period Tax effect Reclassification adjustment Tax effect Unrealized gains (losses) on marketable debt...

  • Page 54
    ...TRUCK, PARTS AND OTHER: 2014 (millions) 2013 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 55
    ... STOCKHOLDERS' EQUITY 53 December 31, TRUCK, PARTS AND OTHER: 2014 (millions) 2013 Current Liabilities Accounts payable, accrued expenses and other Dividend payable Current portion of long-term debt Total Truck, Parts and Other Current Liabilities Residual value guarantees and deferred revenues...

  • Page 56
    ...31, OPERATING ACTIVITIES: 2014 2013 (millions) 2012 Net Income $ 1,358.8 Adjustments to reconcile net income to cash provided by operations: Depreciation and amortization: Property, plant and equipment 285.2 Equipment on operating leases and other 632.5 Provision for losses on financial services...

  • Page 57
    ...D ER S' EQ UIT Y December 31, COMMON STOCK, $ 1 PAR VALUE: 2014 2013 (millions, except per share data) 2012 55 Balance at beginning of year Treasury stock retirement Stock compensation Balance at end of year ADDITIONAL PAID-IN CAPITAL: $ 354.3 .9 355.2 106.2 50.5 156.7 $ 353.4 .9 354.3 56...

  • Page 58
    ... 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 Brasil and sells trucks and parts to customers in Asia, Africa, Middle East and South...

  • Page 59
    ... the years ended December 31, 2014, 2013 and 2012, respectively. Financial Services: The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements...

  • Page 60
    ... December 31, 2014, 2013 and 2012 (currencies in millions) 58 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 reasons. Modifications for commercial reasons are...

  • Page 61
    ...related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for...

  • Page 62
    ... financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU amends the existing accounting standards for revenue recognition. Under the new revenue recognition model, a company should recognize revenue to depict the transfer of promised goods...

  • Page 63
    ...on the specific identification method. Gross realized gains were $1.2, $2.0 and $3.8, and gross realized losses were $.1, $.7 and $.3 for the years ended December 31, 2014, 2013 and 2012, respectively. Marketable debt securities with continuous unrealized losses and their related fair values were as...

  • Page 64
    ....7) $ 8,941.4 (110.9) (10.4) (8.0) $ 8,812.1 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 65
    ...other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk. Allowance for Credit Losses: The allowance for credit losses is summarized as follows: 2014 DEALER WHOLESALE...

  • Page 66
    ... 9.0 $ 1,525.6 13.4 $ 42.1 5.9 5,635.9 91.6 $ 50.6 7.3 8,769.5 114.0 The recorded investment for finance receivables that are on non-accrual status is as follows: At December 31, 2014 2013 Dealer: Wholesale Customer retail: Fleet Owner/operator $ 4.9 34.4 8.9 48.2 $ 8.0 30.5 8.6 47.1 $ $

  • Page 67
    ...: Dealer wholesale Customer retail - fleet Customer retail - owner/operator $ $ .1 1.2 .4 1.7 $ $ .1 2.9 .9 3.9 $ $ .1 1.2 .8 2.1 Credit Quality: The Company's customers are principally concentrated in the transportation industry in North America, Europe and Australia. The Company...

  • Page 68
    ...days past due and other accounts on non-accrual status. The tables below summarize the Company's finance receivables by credit quality indicator and portfolio class. DEALER CUSTOMER RETAIL OWNER / OPERATOR At December 31, 2014 WHOLESALE RETAIL FLEET TOTAL Performing Watch At-risk $ 1,739.5 11...

  • Page 69
    ... Company determines a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating lease. The Company records the vehicles as used truck inventory included in Financial Services...

  • Page 70
    ... December 31, 2014, 2013 and 2012 (currencies in millions) 68 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 71
    ....8) $ 305.4 (219.7) $ 437.4 (351.7) Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: At December 31, 2014 2013 Truck, Parts and Other: Accounts payable, accrued expenses and other Other liabilities Financial Services: Deferred taxes and other...

  • Page 72
    ... the years ended December 31, 2014, 2013 and 2012, the Company capitalized interest on borrowings of $1.3, $10.3 and $10.3, respectively, in Truck, Parts and Other. The primary sources of borrowings in the capital markets are commercial paper and medium-term notes issued in the public markets, and...

  • Page 73
    ... 31, 2014, 2013 and 2012 (currencies in millions) J. LEASES 71 The Company leases certain facilities and computer equipment under operating leases. Leases expire at various dates through the year 2023. At January 1, 2015, annual minimum rent payments under non-cancelable operating leases having...

  • Page 74
    ... incurred severance expense in 2014, 2013 and 2012 of $1.8, $3.5 and $4.8, respectively. Defined Benefit Pension Plans: PACCAR has several defined benefit pension plans, which cover a majority of its employees. The Company evaluates its actuarial assumptions on an annual basis and considers changes...

  • Page 75
    ... S December 31, 2014, 2013 and 2012 (currencies in millions) The following information details the allocation of plan assets by investment type. See Note P for definitions of fair value levels. At December 31, 2014 TARGET LEVEL 73 1 LEVEL 2 TOTAL Equities: U.S. equities Global equities Total...

  • Page 76
    ... prior service cost are expected to be amortized into net pension expense in 2015. The accumulated benefit obligation for all pension plans of the Company was $2,113.7 and $1,742.2 at December 31, 2014 and 2013, respectively. Information for all plans with an accumulated benefit obligation...

  • Page 77
    ...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 2014, 2013 and 2012. Other plans are located in Australia, Brasil, Canada...

  • Page 78
    ... for net operating loss carryforwards were $16.0, $4.5 and $3.2 for the years ended 2014, 2013 and 2012, respectively. A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: 2014 2013 2012 Statutory rate Effect of: State Federal domestic production...

  • Page 79
    ...2014 2013 77 Assets: Accrued expenses Net operating loss and tax credit carryforwards Postretirement benefit plans Allowance for losses on receivables Other Valuation allowance Liabilities: Financial Services leasing depreciation Depreciation and amortization Postretirement benefit plans Other Net...

  • Page 80
    ... 31, 2014, 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 for other major jurisdictions remain subject to examination for the years ranging from 2004 through 2014. N. STOCKHOLDERS' EQUITY...

  • Page 81
    ... debt securities: Marketable debt securities Investment income Tax expense After-tax income increase Pension plans: Truck, Parts and Other Actuarial loss Cost of sales and revenues $11.1, SG&A $9.0 Prior service costs Cost of sales and revenues $1.0, SG&A $.2 Financial Services Actuarial loss...

  • Page 82
    ...: Truck, Parts and Other Financial Services Total reclassifications out of AOCI Other Capital Stock Changes: In 2014, the Company purchased .7 million treasury shares. In 2013, there were no purchases or retirements of treasury shares. In 2012, the Company purchased and retired 4.2 million...

  • Page 83
    ... the balance sheet classification, fair value, gross and pro-forma net amounts of derivative financial instruments: At December 31, ASSETS 81 2014 LIABILITIES ASSETS 2013 LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets Deferred...

  • Page 84
    ... hedged. The (income) or expense 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, 2014 2013 2012 Interest-rate swaps Term notes...

  • Page 85
    ... Company's marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted...

  • Page 86
    ... 31, 2014, 2013 and 2012 (currencies in millions) 84 Derivative Financial Instruments: The Company's derivative contracts consist of interest-rate swaps, cross currency swaps and foreign currency exchange contracts. These derivative contracts are traded over the counter and their fair value is...

  • Page 87
    ... 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 88
    ... per share data) 86 The Company's estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows: At December 31, CARRYING AMOUNT 2014 FAIR VALUE CARRYING AMOUNT 2013 FAIR VALUE Assets: Financial Services fixed rate loans Liabilities: Truck, Parts and...

  • Page 89
    ...five years if the Company's earnings per share growth over the same five year period met or exceeded certain performance goals. All outstanding awards were forfeited in 2013 and 2012 as the performance goals were not achieved. No matching shares were granted under this program in 2014, 2013 or 2012.

  • Page 90
    ... the Parts segment. Financial Services: The 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...

  • Page 91
    ...2014, 2013 and 2012 (currencies in millions) Business Segment Data 2014 2013 2012 89 Net sales and revenues: Truck Less intersegment External customers Parts Less intersegment External customers Other Financial Services...: Truck Parts Other Cash and marketable securities Financial Services $...

  • Page 92
    ... Registered Public Accounting Firm that audited the financial statements included in this Annual Report, has issued an attestation report on the Company's internal control over financial reporting. The attestation report is included on page 91. Ronald E. Armstrong Chief Executive Officer REPORT OF...

  • Page 93
    ... internal control over financial reporting as of December 31, 2014, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of PACCAR Inc as of December 31, 2014 and 2013...

  • Page 94
    ... 92 2014 2013 2012 (millions except per share data) 2011 2010 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 95
    ... except per share data) 2014 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 (a): Basic Diluted 2013 $ 4,086.2 3,595...

  • Page 96
    ...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 $36.2 related to contracts outstanding at December 31, 2014, compared to a loss of $27.7 at December 31, 2013...

  • Page 97
    ... Chairman PACCAR Inc (3) Ronald E. Armstrong Chief Executive Officer PACCAR Inc Dame Alison J. Carnwath Chairman Land Securities Group PLC (2, 4) John M. Fluke, Jr. (Retires 4/20/2015) Chairman Fluke Capital Management, L.P. (1, 3, 4) Beth E. Ford (Effective 4/21/2015) Executive Vice President Land...

  • Page 98
    ... Australia Factory: Bayswater, Victoria, Australia PACCAR Leasing Company Division of PACCAR Financial Corp. PACCAR Building 777 106th Avenue N.E. Bellevue, Washington 98004 DAF Trucks Test Center Weverspad 2 5491 RL St. Oedenrode The Netherlands Canadian Kenworth Company Division Headquarters...

  • Page 99
    ...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 21, 2015, 10:30 a.m. Kenworth Truck Company's Assembly Plant 500 Houser Way North Renton...

  • Page 100