PACCAR 2015 Annual Report Download

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2015 ANNUAL REPORT

Table of contents

  • Page 1
    2 0 1 5 A N N U A L R E P O R T

  • Page 2
    ... S S PACCAR is a global technology company that designs and manufactures premium quality light, medium and heavy duty commercial 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...

  • Page 3
    ...T S 2015 2014  (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 Financial Services Debt Stockholders' Equity Per Common Share: Net Income: Basic Diluted...

  • Page 4
    ... 2015 due to strong truck markets in North America and Europe 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 diversification. The company...

  • Page 5
    ... premium products and provide an extensive array of tailored aftermarket customer services - enables PACCAR to pragmatically approach growth opportunities. PACCAR continues to enhance its stellar reputation as a leading technology company in the capital goods and financial services marketplace...

  • Page 6
    ... year. The European 16+ tonne market in 2015 increased to 269,000 vehicles compared to 226,000 in 2014. Customers in North America and Europe are generating good profits due to strong freight tonnage, low fuel prices and the superior operating efficiency of Kenworth, Peterbilt and DAF trucks. PACCAR...

  • Page 7
    ... and employees have experienced PACCAR's Technology Centers, which highlight electronic work instructions, mobile computing, an electronic leasing and finance office and an automated service analyst. TRUCKS - U.S. and Canadian Class 8 industry retail sales in 2015 were 278,000 units and the...

  • Page 8
    ... over 8,800 used trucks worldwide. PACCAR Financial Europe (PFE) focuses on the financing of new and used DAF trucks. PFE provides wholesale and retail financing for DAF dealers and customers in 15 European countries, and in 2015 financed 24% of DAF's 6+ tonne vehicle sales. PACCAR Leasing (PacLease...

  • Page 9
    ... of globally reporting companies. A LOOK AHEAD  - PACCAR's 23,000 employees enable the company to distinguish itself as a global leader in the technology, capital goods, financial services and aftermarket parts businesses. The outlook for 2016 is good in North America as the economy is expected...

  • Page 10

  • Page 11
    ...(LNG) configurations and the medium-duty Model 337 and Model 348 in Compressed Natural Gas (CNG) configurations. Peterbilt launched its Red Oval pre-owned truck program providing premium used trucks throughout its dealer network and PACCAR Financial used truck centers. Peterbilt added 25 dealerships...

  • Page 12

  • Page 13
    ... sales of the T270 and T370 conventional trucks by over 26 percent. All Kenworth medium-duty vehicles are powered exclusively by the PACCAR PX-7 and PX-9 engines. The Kenworth dealer network expanded to 362 locations in the U.S. and Canada. Dealers invested $137 million in their new facilities...

  • Page 14

  • Page 15
    ...1,100 locations. In 2015, DAF further extended its distribution network by adding 67 new dealer facilities in Western and Central Europe, Russia, the Middle East, South America and Asia. The DAF XF Euro 6 is a leader in a variety of transport and vocational applications, offering customers superior...

  • Page 16
    ... productivity, industry-leading performance and fuel efficiency. PacLease Australia began operations by offering Kenworth and DAF vehicles with rental, full-service lease and contract maintenance programs tailored to customers' specific needs. PACCAR Parts expanded its Fleet Services program...

  • Page 17
    ...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 T680, equipped with the PACCAR MX-13 engine, offers customers advanced aerodynamics, lower operating...

  • Page 18
    ..., the United Kingdom's leading truck manufacturer, produced its 400,000th  vehicle in 2015 and delivered 14,500 DAF vehicles to customers in Europe, Asia, Australia, the Middle East, Russia and the Americas. Leyland's highly efficient 710,000-square-foot manufacturing facility features...

  • Page 19
    ...production and aftermarket operations. The DAF assembly facility in Taiwan builds the full range of DAF XF, CF and LF models. DAF Brasil's Ponta Grossa plant began assembly of PACCAR engines. PACCAR engineering teams in India support the PACCAR truck divisions around the world. PACCAR engines power...

  • Page 20
    ... 2,000 Kenworth, Peterbilt and DAF dealer locations. PACCAR Parts expanded its global Fleet Services program offering national pricing and centralized billing to over 650 commercial vehicle fleets with more than 600,000 vehicles. PACCAR Parts' advanced eCommerce program allows customers 24/7 online...

  • Page 21
    ... is available in Kenworth and Peterbilt trucks beginning January 2016. PACCAR engine factories in the Netherlands and Mississippi represent technology leadership in commercial vehicle diesel engine production. PACCAR engines are standard in DAF, Kenworth and Peterbilt vehicles worldwide, where they...

  • Page 22
    ... process. PACCAR Financial Europe (PFE) has $2.8 billion in assets and provides financial services to DAF dealers and customers in 15 European countries. PFE achieved a 24 percent retail market share in 2015. PACCAR Financial facilitates the sale of premium-quality PACCAR vehicles worldwide by...

  • Page 23
    ...2015, PacLease delivered over 6,600 Kenworth, Peterbilt and DAF vehicles to customers in North America, Europe and Australia. In its 35th anniversary year, PacLease expanded internationally by entering the Australia full-service truck rental and leasing market. The first Australian PacLease location...

  • Page 24
    ..., Peterbilt and DAF trucks. PACCAR Technical Centers in Europe and North America advance the quality and competitiveness of PACCAR products worldwide. In 2015, PACCAR opened a new climatic wind tunnel, further enhancing the state-of-the-art capabilities at its Mt. Vernon, Washington facility.

  • Page 25
    ... employees collaborate with PACCAR divisions in the application of new technologies to enhance manufacturing, financial services, aftermarket logistics and engineering design. This year ITD partnered with Kenworth and Peterbilt to develop and launch Remote Diagnostics for vehicles with the PACCAR MX...

  • Page 26
    ... Units PACCAR Market Share (percent) PACCAR Market Share (percent) T O TA L A S S E T S GEOGRAPHIC REVENUE billions of dollars 24 20 billions of dollars 18 15 12 10 6 5 0 06 07 08 09 10 11 12 13 14 15 0 06 07 08 09 10 11 12 13 14 15 â- Truck, Parts and Other â- Financial Services...

  • Page 27
    ... 31, 2010, in the Company's common stock and in the stated indices and assumes reinvestment of dividends. 25 200 PACCAR Inc S&P 500 Index Current Peer Group Index Prior Peer Group Index 200 150 150 100 100 50 2010 2011 2012 2013 2014 50 2015 2010 PACCAR Inc S&P 500 Index Current...

  • Page 28
    ...'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 includes the manufacturing and marketing of industrial winches. Consolidated net sales and revenues of $19.12 billion in 2015...

  • Page 29
    ... Statements section of Management's Discussion and Analysis for factors that may affect these outlooks. RESULTS OF OPERATIONS: 27 ($ in millions, except per share amounts) Year Ended December 31, 2015 2014 2013 Net sales and revenues: Truck Parts Other Truck, Parts and Other Financial Services...

  • Page 30
    ...were largely offset by lower costs of North American MX engine components imported from Europe. The Company's new truck deliveries are summarized below: Year Ended December 31, 2015 2014 % change U.S. and Canada Europe Mexico, South America, Australia and other Total units 91,300 47,400 16,000 154...

  • Page 31
    ...in 2014, reflecting higher sales volume. Parts The Company's Parts segment accounted for 16% of total revenues for both 2015 and 2014. ($ in millions) Year Ended December 31, 2015 2014 % change Parts net sales and revenues: U.S. and Canada Europe Mexico, South America, Australia and other Parts...

  • Page 32
    30 The Company's worldwide parts net sales and revenues were $3.06 billion in 2015 compared to $3.08 billion in 2014. Higher aftermarket demand in North America and Europe was offset by a decline in the value of foreign currencies relative to the U.S. dollar, primarily the euro, which reduced 2015 ...

  • Page 33
    ...total revenues for both 2015 and 2014. ($ in millions) Year Ended December 31, 31 2015 2014 % 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 volume...

  • Page 34
    ... value of foreign currencies relative to the U.S. dollar. The following table summarizes operating lease, rental and other revenues and depreciation and other expenses: ($ in millions) Year Ended December 31, 2015 2014 Operating lease and rental revenues Used truck sales and other Operating lease...

  • Page 35
    ... portfolio balances in Europe and the U.S. and Canada. 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 changes...

  • Page 36
    ...refinancing. The following table summarizes the Company's 30+ days past due accounts: At December 31, 2015 2014 Percentage of retail loan and lease accounts 30+ days past due: U.S. and Canada Europe Mexico and Australia Worldwide .3% .7% 1.3% .5% .1% 1.1% 2.0% .5% Accounts 30+ days past due were...

  • Page 37
    ...truck and parts operations. 2014 Compared to 2013: Truck The Company's Truck segment accounted for 77% and 76% of total revenues for 2014 and 2013, respectively. ($ in millions) Year Ended December 31, 2014 2013 % change Truck net sales and revenues: U.S. and Canada Europe Mexico, South America...

  • Page 38
    ... 2014, industry retail sales in the heavy-duty market in the U.S. and Canada increased to 249,400 units from 212,200 units in 2013. The Company's heavy-duty truck retail market share was 27.9% compared to 28.0% in 2013. The medium-duty market was 73,300 units in 2014 compared to 65,900 units in 2013...

  • Page 39
    Parts The Company's Parts segment accounted for 16% of total revenues for both 2014 and 2013. ($ in millions) Year Ended December 31, 37 2014 2013 % 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 segment accounted for 6% and 7% of total 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...

  • Page 41
    ... and other expenses: ($ 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...

  • Page 42
    ... 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 for commercial reasons are changes to contract terms for customers that...

  • Page 43
    ...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 44
    ... pre-tax return on revenues for foreign operations were primarily due to lower revenues and truck margins in all foreign markets, except Canada. LIQUIDITY AND CAPITAL RESOURCES: ($ in millions) At December 31, 2015 2014 2013 Cash and cash equivalents Marketable debt securities $ 2,016.4 1,448...

  • Page 45
    ...($ in millions) Year Ended December 31, 43 2015 2014 2013 Operating activities: Net income Net income items not affecting cash Pension contributions Changes in operating assets and liabilities, net Net cash provided by operating activities Net cash used in investing activities Net cash (used in...

  • Page 46
    ..., plant and equipment in 2015 increased to $306.5 million from $220.8 million in 2014, primarily due to higher investments by DAF in Europe and the construction of a new parts distribution center in Renton, Washington. Over the past decade, the Company's combined investments in worldwide capital...

  • Page 47
    ... Market of the London Stock Exchange. This program replaced an expiring program in the second quarter of 2015 and is renewable annually through the filing of new listing particulars. In April 2011, PACCAR Financial Mexico (PFM) registered a 10.00 billion peso medium-term note and commercial paper...

  • Page 48
    ... and commercial paper issued by the 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...

  • Page 49
    ...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 $2.10 billion. A 10% decrease in used truck values worldwide, expected to persist over the remaining maturities of the Company's operating...

  • Page 50
    ... net sales and revenues in 2015, 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 based on management...

  • 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
    ... TS O F I N CO M E 50 Year Ended December 31, TRUCK, PARTS AND OTHER: 2015 2014 (millions, except per share data) 2013 Net sales and revenues Cost of sales and revenues Research and development Selling, general and administrative Interest and other expense, net Truck, Parts and Other Income...

  • Page 53
    ... Year Ended December 31, 2015 2014 (millions) 2013 51 Net income Other comprehensive (loss) income: Unrealized gains (losses) on derivative contracts Gains arising during the period Tax effect Reclassification adjustment Tax effect Unrealized (losses) gains on marketable debt securities Net...

  • Page 54
    ...TRUCK, PARTS AND OTHER: 2015 (millions) 2014 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
    ... Dividend payable Total Truck, Parts and Other Current Liabilities Residual value guarantees and deferred revenues Other liabilities Total Truck, Parts and Other Liabilities $ 2,071.7 492.6 2,564.3 1,047.4 720.2 4,331.9 $ 2,297.2 354.4 2,651.6 970.9 718.8 4,341.3 FINANCIAL SERVICES: Accounts...

  • Page 56
    ... Year Ended December 31, OPERATING ACTIVITIES: 2015 2014 (millions) 2013 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 57
    ...at beginning of year Purchases, shares: 2015 - 3.85; 2014 - .73; 2013 - nil Retirements Balance at end of year RETAINED EARNINGS: (42.7) (201.6) 244.3 (42.7) (42.7) Balance at beginning of year Net income Cash dividends declared on common stock, per share: 2015 - $2.32; 2014 - $1.86; 2013 - $1.70...

  • Page 58
    ... finance and leasing activities are principally related to PACCAR products and associated equipment. 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...

  • Page 59
    ... the years ended December 31, 2015, 2014 and 2013, 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
    ... Company requires periodic reporting of the wholesale dealer's financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases...

  • Page 61
    ...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 62
    ... revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of this ASU by one year to annual reporting...

  • Page 63
    ...2015-05 2015-03 2015-15 2014-12 Inventory (Topic 330): Simplifying the Measurement of Inventory. Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). Intangibles - Goodwill and Other - Internal-Use Software...

  • Page 64
    ...: At December 31, 2015 2014 Loans Direct financing leases Sales-type finance leases Dealer wholesale financing Operating lease receivables and other Unearned interest: Finance leases Less allowance for losses: Loans and leases Dealer wholesale financing Operating lease receivables and other...

  • Page 65
    ..., 2015, 2014 and 2013 (currencies in millions) 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 66
    ...8.5 $ 1,606.5 11.9 $ 43.7 4.6 5,659.1 89.0 $ 48.6 5.1 9,016.5 109.4 The recorded investment for finance receivables that are on non-accrual status is as follows: At December 31, 2015 2014 Dealer: Wholesale Customer retail: Fleet Owner/operator $ 5.0 50.7 10.0 65.7 $ 4.9 34.4 8.9 48.2 $ $

  • Page 67
    ...2015 2014 2013 Interest income recognized: Dealer wholesale Customer retail - fleet Customer retail - owner/operator $ $ $ 1.4 .4 1.8 $ .1 1.2 .4 1.7 $ $ .1 2.9 .9 3.9 Credit Quality: The Company's customers are principally concentrated in the transportation industry in North America, Europe...

  • Page 68
    ... T O C O NS O LI DATED FI N A N CI A L STA TEM EN TS December 31, 2015, 2014 and 2013 (currencies in millions) 66 dealer customer retail owner / operator At December 31, 2015 wholesale retail fleet total Performing Watch At-risk $ 1,922.4 $ 1,561.3 $ 4,680.6 $ 996.6 $ 9,160.9 22.7 27...

  • Page 69
    ...collateral for the loans, finance leases and equipment under operating leases. 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, 2015 and 2014 was $14.6 and $19...

  • Page 70
    ...EN TS December 31, 2015, 2014 and 2013 (currencies in millions) 68 F. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment include the following: At December 31, useful lives 2015 2014 Land Buildings and improvements Machinery, equipment and production tooling Construction in progress...

  • Page 71
    ... are commercial paper and medium-term notes issued in the public markets, and to a lesser extent, bank loans. The medium-term notes are issued by PACCAR Financial Corp. (PFC), PACCAR Financial Europe and PACCAR Financial Mexico. In November 2015, the Company's U.S. finance subsidiary, PFC, filed...

  • Page 72
    ... backup liquidity for commercial paper borrowings and maturing medium-term notes. There were no borrowings under the syndicated bank facilities for the year ended December 31, 2015. J. LEASES The Company leases certain facilities and computer equipment under operating leases. Leases expire at...

  • Page 73
    ...applicable employee benefit and tax laws. The Company contributed $62.9 to its pension plans in 2015 and $81.1 in 2014. The Company expects to contribute in the range of $50.0 to $100.0 to its pension plans in 2016, of which $18.4 is estimated to satisfy minimum funding requirements. Annual benefits...

  • Page 74
    ...TS December 31, 2015, 2014 and 2013 (currencies in millions) 72 The following information details the allocation of plan assets by investment type. See Note P for definitions of fair value levels. At December 31, 2015 target level 1 level 2 total Equities: U.S. equities Global equities Total...

  • Page 75
    ... prior service cost are expected to be amortized into net pension expense in 2016. The accumulated benefit obligation for all pension plans of the Company was $2,028.2 and $2,113.7 at December 31, 2015 and 2014, respectively. Information for all plans with an accumulated benefit obligation...

  • Page 76
    ... employees. The Company's participation in the following multi-employer plans for the years ended December 31 are as follows: pension plan number company contributions pension plan ein 2015 2014 2013 Metal and Electrical Engineering Industry Pension Fund Western Metal Industry Pension Plan...

  • Page 77
    ... for net operating loss carryforwards were $.6, $16.0 and $4.5 for the years ended 2015, 2014 and 2013, respectively. A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: 2015 2014 2013 Statutory rate Effect of: State Federal domestic production...

  • Page 78
    ... are as follows: At December 31, 2015 2014 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 Other...

  • Page 79
    ... 31, 2015, 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 2005 through 2015. N. STOCKHOLDERS' EQUITY...

  • Page 80
    ... aoci components of income 2015 2014 2013 Unrealized (gains) and losses on derivative contracts: Truck, Parts and Other Foreign-exchange contracts Net sales and revenues Cost of sales and revenues Interest and other expense, net Financial Services Interest-rate contracts Interest and other...

  • Page 81
    ... the balance sheet classification, fair value, gross and pro-forma net amounts of derivative financial instruments: At December 31, assets 79 2015 liabilities assets 2014 liabilities Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets Deferred...

  • Page 82
    ... 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, 2015 2014 2013 Interest-rate swaps Term notes...

  • Page 83
    ...Year Ended December 31, 2015 interest rate contracts foreign exchange contracts 81 2014 interest rate contracts foreign exchange contracts 2013 interest rate contracts foreign exchange contracts Truck, Parts and Other: Cost of sales and revenues Interest and other expense, net Financial Services...

  • Page 84
    ... 31, 2015, 2014 and 2013 (currencies in millions) 82 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 85
    ... amounts approximate fair value. Financial Services Net Receivables: For floating-rate loans, wholesale financing, 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
    ... 2015, 2014 and 2013 (currencies in millions, except per share data) 84 Q. STOCK COMPENSATION PLANS PACCAR has certain plans under which officers and key employees may be granted options to purchase shares of the Company's authorized but unissued common stock under plans approved by stockholders...

  • Page 87
    ..., 2015, 2014 and 2013 (currencies in millions, except per share data) The summary of options as of December 31, 2015 and changes during the year then ended are presented below: per share exercise price * remaining contractual life in years * aggregate intrinsic value 85 number of shares Options...

  • Page 88
    ... financing or leasing of 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. Also within this category are other sales...

  • Page 89
    ...2015, 2014 and 2013 (currencies in millions) Business Segment Data 2015 2014 2013 87 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 90
    ... 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 89. Ronald E. Armstrong Chief Executive Officer REPORT OF...

  • Page 91
    ... the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of PACCAR Inc as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended...

  • Page 92
    ... 90 2015 2014 2013 2012 2011 (millions except per share data) 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 93
    ... except per share data) 2015 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 expenses Net Income Net Income Per Share: Basic Diluted 2014 $ 4,548.0 3,910...

  • Page 94
    ... 100 basis point increase across the yield curve as shown in the following table: Fair Value Gains (Losses) CONSOLIDATED: 2015 2014 Assets Cash equivalents and marketable debt securities FINANCIAL SERVICES: Assets Fixed rate loans Liabilities Fixed rate term debt Interest-rate swaps Total $ (21...

  • Page 95
    ... Ronald E. Armstrong Chief Executive Officer Robert J. Christensen President and Chief Financial Officer Gary L. Moore Executive Vice President Daniel D. Sobic (Retired 1/4/2016) Executive Vice President Michael T. Barkley Senior Vice President and Controller Robert A. Bengston Senior Vice President...

  • Page 96
    ...Leasing Company Division of PACCAR Financial Corp. PACCAR Building 777 106th Avenue N.E. Bellevue, Washington 98004 PACCAR Australia Pty. Ltd. Kenworth Trucks Division Headquarters: 64 Canterbury Road Bayswater, Victoria 3153 Australia Factory: Bayswater, Victoria, Australia DAF Trucks Test Center...

  • Page 97
    ...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 26, 2016, 10:30 a.m. Meydenbauer Center 11100 N.E. 6th Street, Bellevue, Washington 98004 An Equal Opportunity Employer This report was printed on...

  • Page 98