| Consolidated Statements of Income (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Investment income | 4.9 | 22.6 | 12.9 | 47.3 |
| Provision for losses on receivables | 54.1 | 41.8 | ||
| Curtailment gain | -47.7 | 0 | ||
| Income Before Income Taxes | 27.9 | 446 | 64.5 | 869.6 |
| Income taxes | 1.4 | 132.5 | 11.7 | 263.8 |
| Net Income | 26.5 | 313.5 | 52.8 | 605.8 |
| Net Income Per Share: | ||||
| Basic | 0.07 | 0.86 | 0.15 | 1.66 |
| Diluted | 0.07 | 0.86 | 0.14 | 1.65 |
| Weighted Average Common Shares Outstanding: | ||||
| Basic | 363.4 | 364.5 | 363.2 | 365.5 |
| Diluted | 364.4 | 366.5 | 364.3 | 367.4 |
| Dividends declared per share | 0.18 | 0.18 | 0.36 | 0.36 |
| TRUCK AND OTHER: | ||||
| Net sales and revenues | 1602.3 | 3,782 | 3332.7 | 7,403 |
| Cost of sales and revenues | 1492.8 | 3202.2 | 3053.9 | 6281.5 |
| Research and development | 52.8 | 90.7 | 105.1 | 173.6 |
| Selling, general and administrative | 79.2 | 127.5 | 167.6 | 253.6 |
| Curtailment gain | -47.7 | 0 | -47.7 | 0 |
| Interest and other expense (income), net | 17.8 | -3.1 | 33.1 | (2) |
| Costs and Expenses, Total | 1594.9 | 3417.3 | 3,312 | 6706.7 |
| Income Before Income Taxes | 7.4 | 364.7 | 20.7 | 696.3 |
| FINANCIAL SERVICES: | ||||
| Interest and fees | 125.7 | 178.8 | 256.8 | 350.8 |
| Operating lease, rental and other income | 117.8 | 151.7 | 241.5 | 297.1 |
| Revenues | 243.5 | 330.5 | 498.3 | 647.9 |
| Interest and other borrowing expenses | 73 | 104.9 | 164.3 | 200.6 |
| Depreciation and other | 104.5 | 112.5 | 206.4 | 220.4 |
| Selling, general and administrative | 21.3 | 30 | 42.6 | 59.1 |
| Provision for losses on receivables | 29.1 | 24.4 | 54.1 | 41.8 |
| Costs and Expenses, Total | 227.9 | 271.8 | 467.4 | 521.9 |
| Income Before Income Taxes | 15.6 | 58.7 | 30.9 | $126 |
| Consolidated Balance Sheets (USD $) | |||||||||||||||||||
| In Millions | Jun. 30, 2009
| Dec. 31, 2008
| |||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and cash equivalents | 1869.7 | 1955.2 | |||||||||||||||||
| Assets, Total | 14922.5 | 16249.8 | [1] | ||||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Preferred stock, no par value: Authorized 1.0 million shares, none issued | 0 | 0 | [1] | ||||||||||||||||
| Common stock, $1 par value: Authorized 1.2 billion shares, 363.7 million shares issued | 363.7 | 363.1 | [1] | ||||||||||||||||
| Additional paid-in capital | 59.3 | 46.1 | [1] | ||||||||||||||||
| Treasury stock - at cost - .41 million shares | -17.4 | -17.4 | [1] | ||||||||||||||||
| Retained earnings | 4646.8 | 4724.7 | [1] | ||||||||||||||||
| Accumulated other comprehensive loss | -136.4 | -269.8 | [1] | ||||||||||||||||
| Total Stockholders' Equity | 4,916 | 4846.7 | [1] | ||||||||||||||||
| Liabilities and Stockholders' Equity, Total | 14922.5 | 16249.8 | [1] | ||||||||||||||||
| TRUCK AND OTHER: | |||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and cash equivalents | 1795.8 | 1899.2 | [1] | ||||||||||||||||
| Trade and other receivables, net | 671.5 | 698.7 | [1] | ||||||||||||||||
| Marketable debt securities | 165.1 | 175.4 | [1] | ||||||||||||||||
| Inventories | 644.6 | 658.1 | [1] | ||||||||||||||||
| Deferred taxes and other current assets | 301.7 | 211.7 | [1] | ||||||||||||||||
| Total Truck and Other Current Assets | 3578.7 | 3643.1 | [1] | ||||||||||||||||
| Equipment on operating leases, net | 473.5 | 425.3 | [1] | ||||||||||||||||
| Property, plant and equipment, net | 1733.2 | 1782.8 | [1] | ||||||||||||||||
| Other noncurrent assets | 319.1 | 368.2 | [1] | ||||||||||||||||
| Assets, Total | 6104.5 | 6219.4 | [1] | ||||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Accounts payable and accrued expenses | 1480.3 | 1792.3 | [1] | ||||||||||||||||
| Dividend payable | 0 | 36.3 | [1] | ||||||||||||||||
| Total Truck and Other Current Liabilities | 1480.3 | 1828.6 | [1] | ||||||||||||||||
| Long-term debt | 170.2 | 19.3 | [1] | ||||||||||||||||
| Residual value guarantees and deferred revenues | 520.8 | 470.8 | [1] | ||||||||||||||||
| Deferred taxes and other liabilities | 427.3 | 636.6 | [1] | ||||||||||||||||
| Total Liabilities | 2598.6 | 2955.3 | [1] | ||||||||||||||||
| FINANCIAL SERVICES: | |||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and cash equivalents | 73.9 | 56 | [1] | ||||||||||||||||
| Finance and other receivables, net | 6995.6 | 8036.4 | [1] | ||||||||||||||||
| Equipment on operating leases, net | 1381.9 | 1534.8 | [1] | ||||||||||||||||
| Other assets | 366.6 | 403.2 | [1] | ||||||||||||||||
| Assets, Total | 8,818 | 10030.4 | [1] | ||||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Accounts payable, accrued expenses and other | 220.2 | 249.2 | [1] | ||||||||||||||||
| Commercial paper and bank loans | 3021.3 | 3576.2 | [1] | ||||||||||||||||
| Term notes | 3490.3 | 3889.3 | [1] | ||||||||||||||||
| Deferred taxes and other liabilities | 676.1 | 733.1 | [1] | ||||||||||||||||
| Total Liabilities | 7407.9 | 8447.8 | [1] | ||||||||||||||||
| [1]The December 31, 2008 consolidated balance sheet has been derived from audited financial statements. | |||||||||||||||||||
| Consolidated Balance Sheets (Parenthetical) (USD $) | |||||||||||||||||||
| Jun. 30, 2009
| Dec. 31, 2008
| ||||||||||||||||||
| Preferred stock, no par value | $0 | $0 | [1] | ||||||||||||||||
| Preferred stock, Authorized | 1,000,000 | 1,000,000 | [1] | ||||||||||||||||
| Preferred stock, issued | 0 | 0 | [1] | ||||||||||||||||
| Common stock, par value | $1 | $1 | [1] | ||||||||||||||||
| Common stock, Authorized | 1,200,000,000 | 1,200,000,000 | [1] | ||||||||||||||||
| Common stock, shares issued | 363,700,000 | 363,700,000 | [1] | ||||||||||||||||
| Treasury stock, shares | 410,000 | 410,000 | [1] | ||||||||||||||||
| [1]The December 31, 2008 consolidated balance sheet has been derived from audited financial statements. | |||||||||||||||||||
| Condensed Consolidated Statements of Cash Flows (USD $) | ||
| In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| OPERATING ACTIVITIES: | ||
| Net income | 52.8 | 605.8 |
| Depreciation and amortization: | ||
| Property, plant and equipment | 95.9 | 113.6 |
| Equipment on operating leases and other | 218.3 | 201.8 |
| Provision for losses on financial services receivables | 54.1 | 41.8 |
| Curtailment gain | -47.7 | 0 |
| Other | -10.8 | 5.1 |
| Pension contributions | -155.2 | -6.8 |
| Change in operating assets and liabilities: | ||
| Wholesale receivables on new trucks | 414 | -63.5 |
| Sales-type finance leases and dealer direct loans on new trucks | 83.2 | 54.6 |
| Other | -294.6 | -198.8 |
| Net Cash Provided by Operating Activities | 410 | 753.6 |
| INVESTING ACTIVITIES: | ||
| Retail loans and direct financing leases originated | -718.3 | -1424.7 |
| Collections on retail loans and direct financing leases | 1300.7 | 1502.1 |
| Marketable securities purchases | (116) | -284.6 |
| Marketable securities sales and maturities | 126.1 | 474.9 |
| Acquisition of property, plant and equipment | -30.2 | (201) |
| Acquisition of equipment for operating leases | -298.8 | -481.5 |
| Proceeds from asset disposals | 213.9 | 84.6 |
| Other | 12.4 | -5.6 |
| Net Cash Provided by (Used in) Investing Activities | 489.8 | -335.8 |
| FINANCING ACTIVITIES: | ||
| Cash dividends paid | -166.7 | -498.6 |
| Purchase of treasury stock | 0 | -192.3 |
| Stock compensation transactions | 5.7 | 8.9 |
| Net decrease in commercial paper and short-term bank loans | -630.1 | (625) |
| Proceeds from term debt | 954.9 | 922.6 |
| Payment of term debt | -1177.6 | -279.6 |
| Net Cash Used in Financing Activities | -1013.8 | (664) |
| Effect of exchange rate changes on cash | 28.5 | 76.1 |
| Net Decrease in Cash and Cash Equivalents | -85.5 | -170.1 |
| Cash and cash equivalents at beginning of period | 1955.2 | 1858.1 |
| Cash and cash equivalents at end of period | 1869.7 | $1,688 |
| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE A - Basis of Presentation | NOTE A Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June30, 2009, are not necessarily indicative of the results that may be expected forthe year ending December31, 2009. For further information, refer to the consolidated financial statements and footnotes included in the Companys Annual Report on Form 10-K for the year ended December31, 2008. The Company has evaluated subsequent events through the date the financial statements were issued on August10, 2009. |
| NOTE B - Investments in Marketable Securities | NOTE B Investments in Marketable Securities The Companys investments in marketable securities are classified as available-for-sale. These investments are stated at fair value with any unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive loss. The proceeds from sales of marketable securities for the six months ended June30, 2009 were $114.6. Gross realized gains and losses for the six months ended June30, 2009 were insignificant. The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest, dividend income and realized gains and losses are included in investment income. The cost of securities sold is based on the specific identification method. Marketable debt securities consisted of the following: At June30, 2009 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. tax-exempt securities $ 149.9 $ 1.7 $ 151.6 Non U.S. corporate securities 2.8 $ .1 2.7 Other debt securities 10.7 .1 10.8 $ 163.4 $ 1.8 $ .1 $ 165.1 At December31, 2008 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. tax-exempt securities $ 167.2 $ 1.7 $ .4 $ 168.5 Non U.S. corporate securities 4.3 .3 4.0 Other debt securities 2.9 2.9 $ 174.4 $ 1.7 $ .7 $ 175.4 The fair value of marketable debt securities that have been in a continuous unrealized loss position for 12 months or greater at June30, 2009 and December31, 2008 and their unrealized amounts were insignificant. Contractual maturities at June30, 2009, were as follows: Maturities: Amortized Cost Fair Value 2009 $ 12.6 $ 12.6 2010 through 2014 124.6 126.3 After 2020 26.2 26.2 $ 163.4 $ 165.1 Marketable debt securities included $26.2 and $65.9 of variable rate demand obligations (VRDOs) atJune 30, 2009 and December31, 2008, respectively. VRDOs are debt instruments with long-term scheduled maturities which have interest rates that reset periodically. |
| NOTE C - Inventories | NOTE C Inventories Inventories include the following: June30 2009 December31 2008 Finished products $ 362.0 $ 394.3 Work in process and raw materials 443.6 421.7 805.6 816.0 Less LIFO reserve (161.0 ) (157.9 ) $ 644.6 $ 658.1 Inventories are stated at the lower of cost or market. Cost of inventories in the United States is determined principally by the last in, first out (LIFO) method. Cost of all other inventories is determined principally by the first in, first out (FIFO) method. Under the LIFO method of accounting (used for approximately 50% of June30, 2009 inventories), anactual valuation can be made only at the end of each year based on year-end inventory levels andcosts. Accordingly, interim valuations are based on managements estimates of those year-end amounts. |
| NOTE D - Finance Receivables | NOTE D Finance Receivables Loans represent fixed- or floating-rate loans to customers collateralized by the vehicles purchased. Retail direct financing and sales-type finance leases are contracts leasing equipment to retail customers and dealers, respectively. These leases are reported as the sum of minimum lease payments receivable and estimated residual value of the property subject to the contracts, reduced by unearned interest on finance leases which is shown separately. Dealer wholesale financing represents floating-rate wholesale loans to PACCAR dealers for new and used trucks. The loans are collateralized principally by the trucks being financed. Interest and other receivables are interest due on loans and leases and other amounts due in the normal course of business. The allowance for losses for loans, leases and other are evaluated together as a group since they relate to a similar customer base and their contractual terms require regular payment of principal and interest primarily over 36 to 60 months and are secured by the same type of collateral. The Company specifically evaluates large accounts with past due balances or that otherwise are deemed to be at a higher risk of credit loss. Finance and other receivables include the following: June30 2009 December31 2008 Loans $ 3,094.8 $ 3,506.7 Retail direct financing leases 2,370.6 2,558.4 Sales-type finance leases 749.5 817.9 Dealer wholesale financing 1,207.4 1,635.0 Interest and other receivables 131.9 127.3 Unearned interest: Finance leases (383.3 ) (430.6 ) 7,170.9 8,214.7 Less allowance for losses: Loans, leases and other (165.4 ) (167.1 ) Dealer wholesale financing (9.9 ) (11.2 ) $ 6,995.6 $ 8,036.4 |
| NOTE E - Product Support Liabilities | NOTE E Product Support Liabilities Product support liabilities consist of amounts accrued to meet product warranty obligations and accrued costs associated with optional extended warranty and repair and maintenance contracts. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical data regarding the source, frequency and cost of claims. PACCAR periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Changes in product support liabilities are summarized as follows: 2009 2008 Beginning balance, January1 $ 450.4 $ 483.3 Cost accruals and revenue deferrals 116.1 168.9 Payments and revenue recognized (162.7 ) (153.5 ) Currency translation 5.5 23.7 Ending balance, June30 $ 409.3 $ 522.4 |
| NOTE F - Stockholders Equity | NOTE F Stockholders Equity Comprehensive Income The components of comprehensive income, net of any related tax, were as follows: ThreeMonthsEnded June30 Six Months Ended June30 2009 2008 2009 2008 Net income $ 26.5 $ 313.5 $ 52.8 $ 605.8 Other comprehensive income (OCI): Currency translation gains 214.8 15.6 114.5 109.6 Derivative contracts increase 6.2 40.8 15.9 6.1 Marketable securities (decrease) increase (5.5 ) .4 (2.8 ) Employee benefit plans amortization (1.4 ) .9 2.6 1.4 Net other comprehensive income 219.6 51.8 133.4 114.3 Comprehensive income $ 246.1 $ 365.3 $ 186.2 $ 720.1 The currency translation gains in 2009 are due to the strengthening of the U.S. dollar compared to the Canadian dollar, the British pound, and the Australian dollar. The currency translation gains in 2008 are primarily attributable to changes in the value of the U.S. dollar compared to the euro. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss was comprised of the following: June30 2009 December31 2008 Currency translation adjustment $ 274.7 $ 160.2 Net unrealized loss on derivative contracts (66.4 ) (82.3 ) Net unrealized investment gains 1.0 .6 Employee benefit plans (345.7 ) (348.3 ) Total accumulated other comprehensive loss $ (136.4 ) $ (269.8 ) Stock Compensation Plans Stock-based compensation expense was $5.4 and $5.0 for the first six months of 2009 and 2008, respectively. Realized tax benefits related to the excess of deductible amounts over expense recognized amounted to $2.1 and $3.4 for the firstsix months of 2009 and 2008, respectively, and have been classified as a financing cash flow. The Company issued 553,413 additional common shares under deferred and stock compensation arrangements in the six months ended June30, 2009. Other Capital Stock Changes No share repurchases were completed during the six months ended June30, 2009. |
| NOTE G - Net Income Per Share | NOTE G Net Income Per Share The following table shows the additional amounts added to the weighted average basic shares outstanding to calculate diluted earnings per share. These amounts primarily represent the dilutive effect of stockoptions. Antidilutive options are excluded from the diluted earnings per share calculation and are shown separately in the table below. Three Months Ended June30 Six Months Ended June30 2009 2008 2009 2008 Additional shares 939,500 1,789,000 926,000 1,793,000 Antidilutive options 3,914,000 714,200 3,914,000 1,458,400 Certain restricted stock awards granted to employees are considered participating securities as these awards contain rights to dividends prior to vesting. As a result of the adoption of FSP EITF 03-6-1, prior period net income per share and dilutive shares are restated. Basic earnings per share is allocated between distributed and undistributed income per share as follows: ThreeMonthsEnded June30 SixMonthsEnded June30 2009 2008 2009 2008 Distributed net income per share $ .18 $ .18 $ .36 $ .36 Undistributed net (loss) income per share (.11 ) .68 (.21 ) 1.30 Basic earnings per share $ .07 $ .86 $ .15 $ 1.66 PACCARs regular quarterly dividend will be reduced from $.18 to $.09 per share, payable September8, 2009, to stockholders of record at the close of business on August18, 2009. |
| NOTE H - Income Taxes | NOTE H Income Taxes The effective tax rate was 5.0% and 18.1% for the second quarter and first half of 2009 compared to 29.7% and 30.3% for the second quarter and first half of 2008. The lower effective tax rate in 2009 reflects a larger percentage benefit from permanent differences such as the RD tax credit and favorable provision to return adjustments in the second quarter which reduced taxes by $5.7 million and the tax rate by 20% in the second quarter of 2009. |
| NOTE I - Segment Information | NOTE I Segment Information Three Months Ended June30 Six Months Ended June30 2009 2008 2009 2008 Net sales and revenues: Truck Total $ 1,661.0 $ 3,899.8 $ 3,421.2 $ 7,601.8 Less intersegment (76.7 ) (157.2 ) (134.5 ) (275.9 ) External customers 1,584.3 3,742.6 3,286.7 7,325.9 All other 18.0 39.4 46.0 77.1 1,602.3 3,782.0 3,332.7 7,403.0 Financial Services 243.5 330.5 498.3 647.9 $ 1,845.8 $ 4,112.5 $ 3,831.0 $ 8,050.9 Income (loss) before income taxes: Truck $ (36.5 ) $ 365.8 $ (11.1 ) $ 701.1 All other 43.9 (1.1 ) 31.8 (4.8 ) 7.4 364.7 20.7 696.3 Financial Services 15.6 58.7 30.9 126.0 Investment Income 4.9 22.6 12.9 47.3 $ 27.9 $ 446.0 $ 64.5 $ 869.6 Depreciation and amortization: Truck $ 71.5 $ 79.9 $ 138.0 $ 154.4 All other 2.4 2.8 4.7 5.3 73.9 82.7 142.7 159.7 Financial Services 85.5 81.8 171.5 155.7 $ 159.4 $ 164.5 $ 314.2 $ 315.4 Included in All other is PACCARs industrial winch manufacturing business and other sales, income and expense not attributable to a reportable segment, including a portion of corporate expense. For the three and six months ended June30, 2009, All other income (loss) before income taxes included a $47.7 one-time benefit from discontinuing subsidies of postretirement medical costs for the majority of its U.S. employees and $7.6 and $19.1, respectively, for expense related to the net change in value of economic hedges. |
| NOTE J - Derivative Financial Instruments | NOTE J Derivative Financial Instruments The Company adopted Statement No.161, Disclosures about Derivative Instruments and Hedging Activities effective January1, 2009. Derivative financial instruments are used as hedges to manage exposures to fluctuations in interest rates and foreign currency exchange rates. Certain derivative instruments designated as either cash flow hedges or fair value hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as economic hedges. The Companys policies prohibit the use of derivatives for speculation or trading. At inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company had no material exposures to default at June30, 2009. Interest-Rate Contracts: The Company enters into various interest-rate contracts, including interest-rate swaps and cross currency interest-rate swaps. Interest-rate swaps involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency. Cross currency interest-rate swaps involve the exchange of notional amounts and interest payments in different currencies. These contracts are used to manage exposures to fluctuations in interest rates and foreign currency exchange rates. Net amounts paid or received are reflected as adjustments to interest expense. At June30, 2009, the notional amount of the Companys interest-rate contracts was $4,127.1. Notional maturities for all interest-rate contracts in the future are $751.7 for the remainder of 2009, $1,384.9 for 2010, $1,307.9 for 2011, $511.4 for 2012, $32.8 for 2013 and $138.4 for 2014. The majority of these contracts are floating to fixed swaps that effectively convert an equivalent amount of commercial paper and other variable rate debt to fixed rates. Foreign-Exchange Contracts: The Company enters into foreign-exchange contracts to hedge certain anticipated transactions, assets and liabilities denominated in foreign currencies, particularly the Canadian dollar, the euro, the British pound, the Australian dollar and the Mexican peso. At June30, 2009, the notional amount of the outstanding foreign-exchange contracts was $233.9. Foreign-exchange contracts mature within one year. The following table presents the balance sheet locations and fair value of derivative financial instruments: June30, 2009 Assets Liabilities Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets $ 19.9 Deferred taxes and other liabilities $ 114.5 Foreign-exchange contracts: Truck and Other: Other current assets .4 Total $ 20.3 $ 114.5 Economic hedges: Interest-rate contracts: Financial Services: Other assets $ 1.0 Deferred taxes and other liabilities $ 15.3 |
| NOTE K - Fair Value Measurements | NOTE K - Fair Value Measurements Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy of fair value measurements is described below. Level 1 Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment. Level 2 Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. The Company has no financial instruments requiring Level 3 valuation. The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements. Marketable Securities: The Companys marketable debt securities consist of municipal bonds, government obligations and investment-grade corporate bonds. The fair value of government obligations and corporate bonds is based on quoted prices in active markets. These are categorized as Level 1. The fair value of municipal bonds is estimated using recent transactions, market price quotations, and pricing models that consider, where applicable, interest rates and other observable market information. These bonds are categorized as Level 2. Derivative Financial Instruments: The Companys derivative contracts consist of interest-rate contracts and foreign currency exchange contracts. These derivative contracts are over the counter and their fair value is determined using modeling techniques that include market inputs such as interest rates, yield curves, currency exchange rates and credit default swap spreads. These contracts are categorized as Level2. A portion of the Companys fixed-rate term notes has been converted to variable-rate term notes using fair value hedges for interest-rate risk. Fair value is determined using modeling techniques that include market inputs for interest rates. PACCARs financial assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows: At June30, 2009 Level1 Level2 Total Assets: Marketable debt securities $ 13.5 $ 151.6 $ 165.1 Derivative contracts 21.3 21.3 Liabilities: Term notes 507.7 507.7 Derivative contracts 132.2 132.2 At December31, 2008 Level 1 Level 2 Total Assets: Marketable debt |
| NOTE L - Employee Benefit Plans | NOTE L - Employee Benefit Plans PACCAR has several defined benefit pension plans, which cover a majority of its employees. The following information details the components of net pension expense for the Companys defined benefit plans: ThreeMonthsEnded June 30 SixMonthsEnded June 30 2009 2008 2009 2008 Service cost $ 7.9 $ 11.9 $ 18.0 $ 23.9 Interest on projected benefit obligation 17.1 19.0 35.1 37.5 Expected return on assets (23.6 ) (23.6 ) (45.1 ) (47.2 ) Amortization of prior service costs .5 .8 1.0 1.5 Recognized actuarial loss 1.8 .9 4.8 1.3 Recognized settlement gain (.2 ) (.2 ) Curtailment cost 1.9 1.9 Net pension expense $ 5.4 $ 9.0 $ 15.5 $ 17.0 During the first six months of 2009, the Company contributed $155.2 to its pension plans. The following information details the components of net retiree (income) expense for the Companys unfunded postretirement medical and life insurance plans: ThreeMonthsEnded June 30 SixMonthsEnded June 30 2009 2008 2009 2008 Components of Retiree Expense : Service cost $ (.9 ) $ .5 $ 1.6 Interest cost (.4 ) .9 $ .8 2.3 Recognized actuarial gain (.1 ) Recognized prior service costs .1 .1 Recognized net initial obligation (.1 ) .1 .2 Curtailment gain (47.7 ) (47.7 ) Net retiree (income) expense $ (49.1 ) $ 1.5 $ (46.9 ) $ 4.2 During the second quarter of 2009, the Company discontinued certain subsidies for post-retirement health care plans and recorded a one-time pretax benefit of $47.7 as a curtailment gain. |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | |||
| 6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
| Entity [Text Block] | |||
| Trading Symbol | PCAR | ||
| Entity Registrant Name | PACCAR INC | ||
| Entity Central Index Key | 0000075362 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Current Reporting Status | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Common Stock, Shares Outstanding | 363,318,736 | ||
| Entity Public Float | $14,300,000,000 |
