PACCAR (PCAR) 10-K 26 Feb 10 2009 FY Annual report Financial data

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Investment income	22.3	84.6	95.4
Provision for losses on receivables	104.4	102.9	41
Curtailment gain	(66)	0	0
Income Before Income Taxes	175	1,464	1764.3
Income taxes	63.1	446.1	537
Net Income	111.9	1017.9	1227.3
Net Income Per Share
Basic	0.31	2.79	3.31
Diluted	0.31	2.78	3.29
Weighted average number of common shares outstanding
Basic	363.8	364.2	371.1
Diluted	364.9	365.9	373.3
TRUCK AND OTHER:
Net sales and revenues	7076.7	13709.6	14030.4
Cost of sales and revenues	6483.4	11736.9	11917.3
Research and development	199.2	341.8	255.5
Selling, general and administrative	348.4	470.2	491.4
Curtailment gain	(66)	0	0
Interest and other expense (income), net	43.6	-1.8	-18.6
Costs and Expenses, Total	7008.6	12547.1	12645.6
Income Before Income Taxes	68.1	1162.5	1384.8
FINANCIAL SERVICES:
Interest and fees	501.8	683.4	672.8
Operating lease, rental and other income	508	579.5	518.5
Revenues	1009.8	1262.9	1191.3
Interest and other borrowing expenses	291.8	394.1	391.2
Depreciation and other	442.5	437.8	364.1
Selling, general and administrative	86.5	111.2	110.9
Provision for losses on receivables	104.4	102.9	41
Costs and Expenses, Total	925.2	1,046	907.2
Income Before Income Taxes	84.6	216.9	284.1

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$1,912	1955.2
Assets, Total	14,569	16249.8
STOCKHOLDERS' EQUITY
Preferred stock, no par value - authorized 1.0 million shares, none issued	0	0
Common stock, $1 par value - authorized 1.2 billion shares; issued 364.4 million and 363.1 million shares	364.4	363.1
Additional paid-in capital	80	46.1
Treasury stock - at cost	-17.4	-17.4
Retained earnings	4640.5	4724.7
Accumulated other comprehensive income (loss)	36.2	-269.8
Total Stockholders' Equity	5103.7	4846.7
Liabilities and Stockholders' Equity, Total	14,569	16249.8
TRUCK AND OTHER:
ASSETS
Cash and cash equivalents	1836.5	1899.2
Trade and other receivables, net	554.7	698.7
Marketable debt securities	219.5	175.4
Inventories	632.1	658.1
Other current assets	224.3	211.7
Total Truck and Other Current Assets	3467.1	3643.1
Equipment on operating leases, net	503.8	425.3
Property, plant and equipment, net	1757.7	1782.8
Other noncurrent assets	409.1	368.2
Assets, Total	6137.7	6219.4
Current Liabilities
Accounts payable, accrued expenses and other	1,490	1792.3
Dividend payable	0	36.3
Total Truck and Other Current Liabilities	1,490	1828.6
Long-term debt	172.3	19.3
Residual value guarantees and deferred revenues	547.2	470.8
Other liabilities	405.3	636.6
Total Liabilities	2614.8	2955.3
FINANCIAL SERVICES:
ASSETS
Cash and cash equivalents	75.5	56
Finance and other receivables, net	6497.7	8036.4
Equipment on operating leases, net	1513.2	1534.8
Other assets	344.9	403.2
Assets, Total	8431.3	10030.4
Current Liabilities
Accounts payable, accrued expenses and other	215.2	249.2
Commercial paper and bank loans	3011.2	3576.2
Term notes	2889.3	3889.3
Deferred taxes and other liabilities	734.8	733.1
Total Liabilities	6850.5	8447.8

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
	Dec. 31, 2009	Dec. 31, 2008
Preferred stock, no par value	$0	$0
Preferred stock, authorized	1,000,000	1,000,000
Preferred stock, issued	0	0
Common stock, par value	$1	$1
Common stock, authorized	1,200,000,000	1,200,000,000
Common stock, shares issued	364,400,000	363,100,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
OPERATING ACTIVITIES:
Net Income	111.9	1017.9	1227.3
Depreciation and amortization:
Property, plant and equipment	188	226.5	196.4
Equipment on operating leases and other	450.1	422.9	330
Provision for losses on financial services receivables	104.4	102.9	41
Curtailment gain	(66)	0	0
Gain on sale of property	0.9	0	-21.7
Deferred taxes	159.7	131	38.3
Other, net	37.2	-1.1	5.3
Receivables:
Trade and other	163.2	-55.5	143.6
Wholesale receivables on new trucks	641.8	-246.3	81.3
Sales-type finance leases and dealer direct loans on new trucks	81.6	52.8	40.3
Inventories	53.4	-85.2	114.4
Other, net	8.1	8.8	16.8
(Decrease) increase in liabilities:
Accounts payable and accrued expenses	-271.8	-239.3	-277.6
Residual value guarantees and deferred revenues	48.2	118.1	85.1
Pension and post retirement contributions	-176.6	(68)	-16.8
Other, net	-160.8	-80.6	51.7
Net Cash Provided by Operating Activities	1373.3	1304.9	2055.4
INVESTING ACTIVITIES:
Retail loans and direct financing leases originated	-1282.2	-2307.5	-3116.6
Collections on retail loans and direct financing leases	2285.5	2,771	2837.3
Net decrease in wholesale receivables on used equipment	3.5	10.4	13.7
Marketable securities purchases	-288.3	-667.3	-1282.9
Marketable securities sales and maturities	245.5	1239.4	1345.5
Acquisition of property, plant and equipment	-127.7	-462.8	-425.7
Acquisition of equipment for operating leases	-843.3	-1087.2	-841.7
Proceeds from asset disposals	317.6	239.3	240.1
Other, net	0	12.8	-66.5
Net Cash Provided by (Used in) Investing Activities	310.6	-251.9	-1296.8
FINANCING ACTIVITIES:
Cash dividends paid	-232.1	-629.2	-736.7
Purchase of treasury stock	0	-230.6	-360.5
Stock compensation transactions	17.6	11.5	30.8
Net decrease in commercial paper and short-term bank loans	-789.8	(482)	-366.1
Proceeds from long-term debt	1,373	1190.9	879.5
Payments on long-term debt	-2184.9	-728.7	-285.5
Net Cash Used in Financing Activities	-1816.2	-868.1	-838.5
Effect of exchange rate changes on cash	89.1	-87.8	85.5
Net (Decrease) Increase in Cash and Cash Equivalents	-43.2	97.1	5.6
Cash and Cash Equivalents at beginning of year	1955.2	1858.1	1852.5
Cash and Cash Equivalents at end of year	$1,912	1955.2	1858.1

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions						Total
Balance at beginning of year at Dec. 31, 2006	248.5	27.5	-2.1	4026.1	156.2
Net Income				1227.3		1227.3
Purchases: (shares) 2008-5.1; 2007-5.1			-359.6
Other comprehensive income (loss)					251.9	251.9
Cash dividends declared on common stock, per share: 2009-$.54; 2008-$.82; 2007-$1.65				-607.6
Retirements	-3.8	-33.8	300	-262.4
50% stock dividend	122.8			-122.8
Stock compensation and tax benefit		44
Stock compensation	0.9
Balance at end of year at Dec. 31, 2007	368.4	37.7	-61.7	4260.6	408.1	5013.1
Net Income				1017.9		1017.9
Purchases: (shares) 2008-5.1; 2007-5.1			-230.6
Other comprehensive income (loss)					-677.9	-677.9
Cash dividends declared on common stock, per share: 2009-$.54; 2008-$.82; 2007-$1.65				-298.8
Retirements	-5.9	(14)	274.9	(255)
50% stock dividend	0			0
Stock compensation and tax benefit		22.4
Stock compensation	0.6
Balance at end of year at Dec. 31, 2008	363.1	46.1	-17.4	4724.7	-269.8	4846.7
Net Income				111.9		111.9
Purchases: (shares) 2008-5.1; 2007-5.1			0
Other comprehensive income (loss)					306	306
Cash dividends declared on common stock, per share: 2009-$.54; 2008-$.82; 2007-$1.65				-196.1
Retirements	0	0	0	0
50% stock dividend	0			0
Stock compensation and tax benefit		33.9
Stock compensation	1.3
Balance at end of year at Dec. 31, 2009	364.4	$80	-17.4	4640.5	36.2	5103.7

1_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
Share data in Millions, except Per Share data
Purchases, shares	5.1
Cash dividends declared on common stock, per share		1.65
Purchases, shares	5.1
Cash dividends declared on common stock, per share		0.82
Purchases, shares	0
Cash dividends declared on common stock, per share		0.54

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net Income	111.9	1017.9	1227.3
Unrealized (losses) gains on derivative contracts
Losses arising during the period	-71.6	-85.5	-32.5
Tax effect	21.3	24.7	15.9
Reclassification adjustment	119.9	-17.4	-14.8
Tax effect	-35.7	4.1	5.6
Other Comprehensive Income, Derivatives Qualifying as Hedges, Net of Tax, Total	33.9	-74.1	-25.8
Unrealized (losses) gains on investments
Net holding (loss) gain	-0.3	2.9	5.2
Tax effect	0.1	-0.9	-2.1
Reclassification adjustment	0.7	-5.1	0.2
Tax effect	-0.2	1.8	-0.1
Other Comprehensive Income, Available-for-sale Securities Adjustment, Net of Tax, Total	0.3	-1.3	3.2
Pension and postretirement
Gains (losses) arising during the period	73	-395.1	87
Tax effect	-32.1	144.7	-32.2
Reclassification adjustment	11.2	6	12.7
Tax effect	-3.9	-2.1	-4.6
Other Comprehensive Income, Defined Benefit Plans Adjustment, Net of Tax, Total	48.2	-246.5	62.9
Foreign currency translation gains (losses)	223.6	(356)	211.6
Net other comprehensive income (loss)	306	-677.9	251.9
Comprehensive Income	417.9	$340	1479.2

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
SIGNIFICANT ACCOUNTING POLICIES	A. SIGNIFICANT ACCOUNTING POLICIES Description of Operations: PACCAR Inc (the Company or PACCAR) is a multinational company operating in two segments: (1)the design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks and related aftermarket parts and (2)finance and leasing products and services provided to customers and dealers. PACCARs sales and revenues are derived primarily from North America and Europe. The Company also operates in Australia and sells trucks and parts outside itsprimary markets to customers in Asia, Africa and South America. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions thataffect the amounts reported in the financial statements and accompanying notes. Actual results coulddiffer from those estimates. Cash and Cash Equivalents: Cash equivalents consist of liquid investments with a maturity at date ofpurchase of three months or less. Trade and Other Receivables: The Companys trade and other receivables are recorded at cost on the balance sheet net of allowances. Long-lived Assets, Goodwill and Other Intangible Assets: The Company evaluates the carrying value of long-lived assets (including property and equipment, goodwill and other intangible assets) when events and circumstances warrant such a review. Goodwill is tested for impairment on an annual basis. Impairment charges were insignificant during the three years ended December31, 2009. Revenue Recognition: Substantially all sales and revenues of trucks and related aftermarket parts are recorded by the Company when products are shipped todealers or customers, except for certain truck shipments that are subject to a residual value guarantee to the customer. Revenues related to these shipments arerecognized on a straight-line basis over the guarantee period (see Note F). At the time certain truck and parts sales to a dealer are recognized, the Company records anestimate of the future sales incentive costs related to such sales. The estimate is based on historical data and announced incentive programs. Interest income from finance and other receivables isrecognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts, generally three to six years, using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. Recognition of interest income and rental revenue issuspended when management determines that collection is not probable (generally after 90 days pastthe contractual due date). Recognition is resumed ifthe receivable becomes contractually current and the collection of amounts is again considered probable. Payments received while the loan is in

INVESTMENTS IN MARKETABLE SECUR

INVESTMENTS IN MARKETABLE SECURITIES
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS IN MARKETABLE SECURITIES	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 income. The proceeds from sales and maturities of marketable securities during 2009 were $245.5. Gross realized gains and losses were $1.2, $5.1, and nil, and $.1, $.1 and $.1 for the years ended December31, 2009, 2008 and 2007, respectively. The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest and 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 December31: 2009 AMORTIZED COST UNREALIZED GAINS UNREALIZED LOSSES FAIR VALUE U.S. government and agency securities $ 6.5 $ 6.5 U.S. tax-exempt securities 141.2 $ 1.3 142.5 U.S. corporate securities 22.0 .2 $ .1 22.1 Non U.S. corporate securities 22.0 22.0 Non U.S. government securities 12.2 12.2 Other debt securities 14.2 14.2 $ 218.1 $ 1.5 $ .1 $ 219.5 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 Non U.S. government 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 December31, 2009 and 2008 were $27.4 and $16.7, and their unrealized losses were $.1 and $.6, respectively. Contractual maturities at December31, 2009, were as follows: Maturities: AMORTIZED COST FAIR VALUE Within one year $ 99.7 $ 100.3 One to five years 104.5 105.3 Ten or more years 13.9 13.9 $ 218.1 $ 219.5 Marketable debt securities included $11.6 and $65.9 of variable-rate demand obligations (VRDOs) atDecember 31, 2009 and 2008, respectively. VRDOs are debt instruments with long-term scheduled maturities which have interest rates that reset periodically.

INVENTORIES

INVENTORIES
	12 Months Ended Dec. 31, 2009 USD / shares
INVENTORIES	C. INVENTORIES Inventories include the following: At December31, 2009 2008 Finished products $ 312.5 $ 394.3 Work in process and raw materials 487.5 421.7 800.0 816.0 Less LIFO reserve (167.9 ) (157.9 ) $ 632.1 $ 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. Inventories valued using the LIFO method comprised 58% and 52% of consolidated inventories before deducting the LIFO reserve at December31, 2009 and 2008.

FINANCE AND OTHER RECEIVABLES

FINANCE AND OTHER RECEIVABLES
	12 Months Ended Dec. 31, 2009 USD / shares
FINANCE AND OTHER RECEIVABLES	D. FINANCE AND OTHER RECEIVABLES Finance and other receivables include the following: At December31, 2009 2008 Loans $ 2,875.2 $ 3,506.7 Retail direct financing leases 2,260.0 2,558.4 Sales-type finance leases 764.9 817.9 Dealer wholesale financing 1,015.2 1,635.0 Interest and other receivables 109.6 127.3 Unearned interest: Finance leases (359.6 ) (430.6 ) 6,665.3 8,214.7 Less allowance for losses (see Note E): Loans, leases and other (157.1 ) (167.1 ) Dealer wholesale (10.5 ) (11.2 ) $ 6,497.7 $ 8,036.4 Loans represent fixed- or floating-rate loans to customers collateralized by the vehicles purchased. Retail direct financing and sales-type finance leases are contracts that lease 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 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. Annual minimum payments due on loans and leases are as follows: LOANS FINANCE LEASES DEALER WHOLESALE 2010 $ 1,123.3 $ 984.7 $ 815.3 2011 817.1 792.0 199.9 2012 525.4 527.4 2013 283.3 309.8 2014 108.0 141.3 Thereafter 18.1 82.9 $ 2,875.2 $ 2,838.1 $ 1,015.2 Included in Loans are dealer direct loans onthe sale of new trucks of $143.7 and $171.6 as of December31, 2009 and 2008. Estimated residual values included with finance leases amounted to $186.8 in 2009 and $190.6 in 2008. Repayment experience indicates that some loan and lease receivables will be paid prior to contract maturity, while others may be extended or revised. Experience also indicates that the majority of dealer wholesale financing will be repaid within one year. Items included in Interest and other receivables are all due within one year. The effects of sales-type leases, dealer direct loans and wholesale financing of new trucks are shown in the consolidated statements of cash flows as operating activities since they finance the sale of company inventory.

ALLOWANCES FOR LOSSES

ALLOWANCES FOR LOSSES
	12 Months Ended Dec. 31, 2009 USD / shares
ALLOWANCES FOR LOSSES	E. ALLOWANCES FOR LOSSES 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 principally over 36 to 60 months and they are secured by the same type of collateral. The allowance for credit losses consists of both a specific reserve and a general reserve. Receivables are charged to the allowance for losses when, in the judgment of management, they are considered uncollectible (generally upon repossession ofthe collateral). The provision for losses on finance, trade and other receivables is charged to income based on managements estimate of incurred credit losses, net of recoveries, inherent in the portfolio. The allowance for losses is summarized as follows: TRUCK ANDOTHER FINANCIAL SERVICES Balance, December31, 2006 $ 5.7 $ 169.0 Provision for losses .2 41.0 Net charge-offs (.5 ) (25.8 ) Acquisitions .2 1.8 Currency translation 1.9 7.4 Balance, December31, 2007 7.5 193.4 Provision for losses (.3 ) 102.9 Net charge-offs (2.0 ) (104.8 ) Currency translation (.3 ) (13.2 ) Balance, December31, 2008 4.9 178.3 Provision for losses 1.1 104.4 Net charge-offs (1.8 ) (121.8 ) Currency translation .1 6.7 Balance, December31, 2009 $ 4.3 $ 167.6 The Companys customers are principally concentrated in the transportation industry in North America and Europe. There are no significant concentrations ofcredit risk in terms of a single customer. Generally, receivables are collateralized by the related equipment and parts. Impaired finance and other receivables include accounts that may or may not have a specific reserve and certain accounts that are placed on non-accrual status. The majority of the loans that have a specific reserve are also on non-accrual status. The Companys Financial Services segment information on impaired finance and other receivables is as follows: As of and for the Years Ended December31, 2009 2008 Finance receivables on non-accrual status $ 88.4 $ 59.8 Impaired receivables with specific reserve 38.3 28.5 Impaired receivables with no specific reserve 29.1 34.5 Specific loss reserves on impaired receivables 7.3 4.8 Average balance of impaired receivables 84.9 80.0 Interest recognized on impaired receivables 4.3 2.6 The Company repossesses vehicles which serve as collateral for loans and finance leases and records the vehicles as used truck inventory included in Financial Services Other Assets on the balance sheet. The Company repossessed collateral valued at $203.0 and recorded $106.5 of credit losses upon repossession in 2009. Repossessed assets are typically disposed of promptly after repossession with differences between the estimated market value and the ultimate sales pric

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT
	12 Months Ended Dec. 31, 2009 USD / shares
PROPERTY, PLANT AND EQUIPMENT	G. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost. Depreciation is computed principally by the straight-line method based on the estimated useful lives of the various classes of assets. Certain production tooling is amortized on a unit of production basis. Property, plant and equipment include the following: At December31, USEFULLIVES 2009 2008 Land $ 206.3 $ 186.8 Buildings and improvements 10-40years 1,007.6 951.1 Machinery, equipment and production tooling 3-12 years 2,489.0 2,355.2 3,702.9 3,493.1 Less allowance for depreciation (1,945.2 ) (1,710.3 ) $ 1,757.7 $ 1,782.8

ACCOUNTS PAYABLE, ACCRUED EXPEN

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER
	12 Months Ended Dec. 31, 2009 USD / shares
ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER	H. ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER Accounts payable, accrued expenses and other include the following: At December31, 2009 2008 Truck and Other: Accounts payable $ 622.5 $ 617.9 Accrued expenses 226.0 388.4 Salaries and wages 132.9 168.7 Product support reserves 230.8 298.6 Other 277.8 318.7 $ 1,490.0 $ 1,792.3

PRODUCT SUPPORT LIABILITIES

PRODUCT SUPPORT LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
PRODUCT SUPPORT LIABILITIES	I. PRODUCT SUPPORT LIABILITIES Product support liabilities include reserves related to product warranties and optional extended warranties andrepair and maintenance (RM) contracts. The Company generally offers one-year warranties covering most of its vehicles and related aftermarket parts. Specific terms and conditions vary depending on theproduct and the country of sale. Optional extended warranty and RM contracts can be purchased for periods which generally range up to five years. 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, net of any recoveries. PACCAR periodically assesses the adequacy of its recorded liabilities and adjusts them asappropriate toreflect actual experience. Changes in warranty and RM reserves are summarized as follows: At December31, 2009 2008 2007 Beginning balance $ 450.4 $ 483.3 $ 458.3 Cost accruals and revenue deferrals 169.0 312.3 339.2 Payments and revenue recognized (245.6 ) (304.6 ) (345.1 ) Currency translation 12.6 (40.6 ) 30.9 $ 386.4 $ 450.4 $ 483.3 Warranty and RM reserves are included in the accompanying consolidated balance sheets as follows: At December31, 2009 2008 Truck and Other: Accounts payable, accrued expenses and other $ 230.8 $ 298.6 Other liabilities 84.3 83.9 Financial Services: Deferred taxes and other liabilities 71.3 67.9 $ 386.4 $ 450.4

BORROWINGS AND CREDIT ARRANGEME

BORROWINGS AND CREDIT ARRANGEMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
BORROWINGS AND CREDIT ARRANGEMENTS	J. BORROWINGS AND CREDIT ARRANGEMENTS Truck and Other long-term debt at December31, 2009, consisted of $150.0 of notes bearing interest at 6.9% which mature in 2014 and $22.3 of non-interest bearing notes which mature in 2011. In 2008, long-term debt consisted of non-interest bearing notes of $19.3. Financial Services borrowings include the following: At December31, EFFECTIVE RATE 2009 2008 Commercial paper 2.8 % $ 2,695.6 $ 3,332.6 Bank loans: Short-term 50.4 Medium-term 7.6 % 315.6 193.2 3,011.2 3,576.2 Term notes 4.8 % 2,889.3 3,889.3 $ 5,900.5 $ 7,465.5 The term notes of $2,889.3 at December31, 2009, include an increase in fair value of $19.6 for notes designated to fair value hedges. The effective rate is the weighted average rate as of December31, 2009, and includes the effects of interest rate contracts. The annual maturities of the financial services borrowings are as follows: Beginning January1, 2010 COMMERCIAL PAPER BANK LOANS TERM NOTES TOTAL 2010 $ 2,695.6 $ 95.1 $ 789.8 $ 3,580.5 2011 154.7 1,109.9 1,264.6 2012 43.2 620.0 663.2 2013 22.6 22.6 2014 350.0 350.0 $ 2,695.6 $ 315.6 $ 2,869.7 $ 5,880.9 Interest paid on borrowings was $267.6, $327.1 and $339.0 in 2009, 2008 and 2007. The weighted average interest rate on consolidated commercial paper and short-term bank loans was 2.8% and 3.8% at December31, 2009 and 2008, respectively. The primary sources of borrowings are commercial paper and medium-term notes issued in the public markets. The medium-term notes are issued by PACCAR Inc, PACCAR Financial Corp. (PFC), PACCAR Financial Europe and PACCAR Mexico. PACCAR Inc intends to periodically file shelf registrations under the Securities Act of 1933. The total amount of medium-term notes outstanding for PACCAR Inc as of December31, 2009, is $870.0. The current registration expires in 2011 and does not limit the principal amount ofdebt securities that may be issued during the period. In November 2009, the Companys U.S. finance subsidiary, PFC, filed a shelf registration under the Securities Act of 1933. In December 2009, PFC issued $250.0 of fixed-rate medium-term notes under this registration. The total amount of medium-term notes outstanding for PFC as of December31, 2009, was $1,148.5. The registration expires in 2012 and does not limit the principal amount of debt securities that may be issued during the period. At December31, 2009, PACCARs European finance subsidiary, PACCAR Financial Europe, had 850.0 available for issuance under a 1,500.0 medium-term note program registered with the London Stock Exchange. The program was renewed in the third quarter of 2009 and is renewable annually. In June 2008, PACCAR Mexico registered a 7,000 peso medium-term note program with the Comision Nacional Bancaria y de Valores. The registrati

LEASES

LEASES
	12 Months Ended Dec. 31, 2009 USD / shares
LEASES	K. LEASES The Company leases certain facilities, computer equipment and aircraft under operating leases. Leases expire at various dates through the year 2017. Annual minimum rent payments under non-cancelable operating leases having initial or remaining terms in excess of one year at January1, 2010, are $27.0, $17.5, $9.7, $6.1, $2.7 and $.5 thereafter. Total rental expenses under all leases amounted to $40.6, $43.3 and $41.1 for 2009, 2008 and 2007, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS AND CONTINGENCIES	L. COMMITMENTS AND CONTINGENCIES The Company is involved in various stages of investigations and cleanup actions in different countries related toenvironmental matters. In certain of these matters, the Company has been designated as a potentially responsible party by domestic and foreign environmental agencies. The Company has an accrual to provide for the estimated costs to investigate and complete cleanup actions where it is probable that the Company will incursuch costs in the future. Expenditures related to environmental activities in 2009, 2008 and 2007 were $1.3, $3.8, and $1.9, respectively. While the timing and amount of the ultimate costs associated with future environmental cleanup cannot be determined, management expects that these matters will not have a significant effect on the Companys consolidated financial position. At December31, 2009, PACCAR had standby letters of credit of $20.5, which guarantee various insurance and financing activities. The Company is committed, under specific circumstances, to purchase equipment at acost of $53.4 in 2011. At December31, 2009, PACCARs financial services companies, inthe normal course of business, had outstanding commitments to fund new loan and lease transactions amounting to $105.3. The commitments generally expire in 90 days. At December31, 2009, the Company had commitments related to the construction of its engine facility in Columbus, Mississippi of $11.4 in 2010 and $56.2 thereafter. The Company had other commitments, primarily to purchase production inventory, amounting to $113.7 in 2010 and $183.1 thereafter. PACCAR is a defendant in various legal proceedings and, in addition, there are various other contingent liabilities arising in the normal course of business. Afterconsultation with legal counsel, management doesnot anticipate that disposition of these proceedings and contingent liabilities will have a material effect on the consolidated financial statements.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS
	12 Months Ended Dec. 31, 2009 USD / shares
EMPLOYEE BENEFITS	M. EMPLOYEE BENEFITS Severance Costs: During 2009 and 2008, the Company incurred severance costs as summarized below. These costs were the result of work force adjustments reflecting low truck demand, primarily in Europe. 2009 2008 Truck and Other: Cost of sales and revenues $ 19.2 $ 13.1 Selling, general and administrative 6.4 3.4 $ 25.6 $ 16.5 Financial Services: Selling, general, and administrative .3 .8 Total Severance Costs $ 25.9 $ 17.3 At December31, 2009, the Company had $3.6 accrued for future severance payments expected in the next year, compared to an accrual of $4.6 at December31, 2008. Employee Benefit Plans: PACCAR has several defined benefit pension plans, which cover a majority of its employees. The Company evaluates its actuarial assumptions onan annual basis and considers changes based upon market conditions and other factors. The Company funds its pensions in accordance with applicable employee benefit and tax laws. The Company contributed $173.4 to its pension plans in 2009 and $63.9 in 2008. The Company expects to contribute inthe range of $25.0 to $75.0 to its pension plans in 2010 of which $10.3 is estimated to satisfy minimum funding requirements. Annual benefits expected to be paid beginning January1, 2010, are $55.6, $58.8, $64.9, $68.7, $75.8 and for the five years thereafter, a total of$433.6. Plan assets are invested in global equity and debt securities through professional investment managers with the objective to achieve targeted risk adjusted returns and maintain liquidity sufficient to fund current benefit payments. Typically, each defined benefit plan has an investment policy that includes a target for asset mix including maximum and minimum ranges for allocation percentages by investment category. The actual allocation of assets may vary at times based upon rebalancing policies and other factors. The Company periodically assesses the target asset mix by evaluating external sources of information regarding the long-term historical return, volatilities and expected future returns for each investment category. In addition, the long-term rates of return assumptions for pension accounting are reviewed annually to ensure they are appropriate. Target asset mix and forecast long-term returns by asset category are considered in determining the assumed long-term rates of return, although historical returns realized are given some consideration. The following information details the allocation of plan assets by investment type. See Note Q for definitions of fair value levels. At December31, 2009 TARGET LEVEL1 LEVEL2 TOTAL Equity Funds: U.S. equity funds $ 29.2 $ 374.2 $ 403.4 Global equity funds 311.4 311.4 Total equity funds 50-70 % 29.2 685.6 714.8 Fixed Income Funds: U.S. fixed income funds 303.2 109.3 412.5 Non U.S. fixed income funds 13.8

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	N. INCOME TAXES The Companys tax rate is based on income and statutory tax rates in the various jurisdictions in which the Company operates. Tax law requires items to be included in the Companys tax returns at different times than the items reflected in the Companys financial statements. As a result, the Companys annual tax rate reflected in its financial statements is different than that reported in its tax returns. Some of these differences are permanent, such as expenses that are not deductible in the Companys tax return, and some differences reverse over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities. The Company establishes valuation allowances for its deferred tax assets if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The components of the Companys income before income taxes include the following: Year Ended December31, 2009 2008 2007 Domestic $ 79.1 $ 96.0 $ 419.1 Foreign 95.9 1,368.0 1,345.2 $ 175.0 $ 1,464.0 $ 1,764.3 The components of the Companys provision for income taxes include the following: Year Ended December31, 2009 2008 2007 Current provision (benefit): Federal $ (102.4 ) $ (24.7 ) $ 120.5 State (2.5 ) (7.9 ) 11.1 Foreign 8.3 347.7 367.1 (96.6 ) 315.1 498.7 Deferred provision (benefit): Federal 125.4 123.7 41.9 State 8.2 12.5 3.6 Foreign 26.1 (5.2 ) (7.2 ) 159.7 131.0 38.3 $ 63.1 $ 446.1 $ 537.0 Tax benefits recognized for net operating loss carryforwards were $27.8, $4.7 and $21.2 for the years ended 2009, 2008 and 2007. Tax expense for the year ended December31, 2009, includes a charge of $11.4 resulting from the retroactive effects of a Mexican tax law enacted in December 2009. A reconciliation of the statutory U.S federal tax rate to the effective income tax rate is as follows: 2009 2008 2007 Statutory rate 35.0 % 35.0 % 35.0 % Effect of: Mexican tax law change 6.5 Qualified dividends to defined contribution plan (2.3 ) (.4 ) (.7 ) Research and development credit (2.1 ) (.4 ) (.3 ) Tax on foreign earnings .8 (4.6 ) (4.1 ) Tax contingencies 2.2 (.3 ) (.1 ) Other, net (4.0 ) 1.2 .6 36.1 % 30.5 % 30.4 % U.S. income taxes are not provided on the undistributed earnings of the Companys foreign subsidiaries that are considered to be indefinitely reinvested. At December31, 2009, the amount of undistributed earnings which are considered to be indefinitely reinvested is $3,117.8. At December31, 2009, the Company had net operating lo

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY
	1/1/2009 - 12/31/2009 USD / shares
STOCKHOLDERS' EQUITY	O. STOCKHOLDERS EQUITY Accumulated Other Comprehensive Income (Loss): Following are the components of accumulated other comprehensive income: At December31, 2009 2008 2007 Unrealized gain on investments $ 1.4 $ 1.0 $ 3.2 Tax effect (.5 ) (.4 ) (1.3 ) .9 .6 1.9 Unrealized loss on derivative contracts (73.4 ) (121.7 ) (18.8 ) Tax effect 25.0 39.4 10.6 (48.4 ) (82.3 ) (8.2 ) Pension and postretirement: Unrecognized: Actuarial loss (444.7 ) (525.9 ) (131.6 ) Prior service cost (14.7 ) (16.0 ) (20.0 ) Net initial obligation (.6 ) (2.3 ) (3.5 ) Tax effect 159.9 195.9 53.3 (300.1 ) (348.3 ) (101.8 ) Currency translation adjustment 383.8 160.2 516.2 Accumulated other comprehensive income (loss) $ 36.2 $ (269.8 ) $ 408.1 Other Capital Stock Changes: PACCAR had 409,000 treasury shares at December31, 2009 and 2008, and 1,278,900 treasury shares at December31, 2007. Stock Dividend: A 50% common stock dividend waspaid in October 2007. This resulted in the issuance of 122,775,211 additional shares and 613 fractional shares paid in cash.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
DERIVATIVE FINANCIAL INSTRUMENTS	P. DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are used to hedge 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 December31, 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 December31, 2009, the notional amount of the Companys interest-rate contracts was $3,541.2. Notional maturities for all interest-rate contracts are $1,396.0 for 2010, $1,148.9 for 2011, $826.5 for 2012, $29.3 for 2013 and $140.5 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 and assets and liabilities denominated in foreign currencies, particularly the Canadian dollar, the euro, the British pound, the Australian dollar and the Mexican peso. At December31, 2009, the notional amount of the outstanding foreign-exchange contracts was $155.1. Foreign-exchange contracts mature within one year. The following table presents the balance sheet locations and fair value of derivative financial instruments: At December31, 2009 ASSETS LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets $ 10.8 Deferred taxes and other liabilities $ 107.1 Foreign-exchange contracts: Truck and Other: Deferred taxes and other current assets .1 Accounts payable, accrued expenses and other .2 Total $ 10.9 $ 107.3 Economic hedges: Interest-rate contracts: Financial Services: Other assets $ .4 Deferred taxes and other liabilities $ 9.0 Foreign-exchange contracts: Truck and Other: Accounts payable, accrued expen

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
FAIR VALUE MEASUREMENTS	Q. 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 is based on quoted prices in active markets. These are categorized as Level 1. The fair value of municipal bonds and corporate bonds are 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 and currency exchange rates. These contracts are categorized as Level 2. 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 assets and liabilities subject to recurring fair value measurements, are either Level 1 or Level 2 as follows: At December31, 2009 LEVEL1 LEVEL2 TOTAL Assets: Marketable debt securities $ 6.5 $ 213.0 $ 219.5 Derivative contracts 11.6 11.6 Liabilities: Derivative contracts 116.6 116.6 At December31, 2008 LEVEL1 LEVEL2 TOTAL Assets: Marketable debt securities $ 6.9 $ 168.5 $ 175.4 Derivative contracts

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
STOCK COMPENSATION PLANS	R. STOCK COMPENSATION PLANS PACCAR has certain plans under which officers and key employees may be granted options to purchase shares of the Companys authorized but unissued common stock. Non-employee directors and certain officers may be granted restricted shares of the Companys common stock. The maximum number of shares of the Companys common stock authorized for issuance under these plans is 46.7million, and as of December31, 2009, the maximum number of shares available for future grants was 17.7 million. Options outstanding under these plans were granted with exercise prices equal to the fair market value of the Companys common stock at the date of grant. Options expire no later than ten years from the grant date and generally vest within three years. Stock option activity is summarized below: NUMBER OFSHARES EXERCISE PRICE* Outstanding at 12/31/06 6,162,000 $ 19.50 Granted 824,200 44.56 Exercised (1,168,200 ) 14.79 Cancelled (109,000 ) 34.80 Outstanding at 12/31/07 5,709,000 23.79 Granted 734,300 45.74 Exercised (403,000 ) 16.95 Cancelled (241,000 ) 39.50 Outstanding at 12/31/08 5,799,300 26.39 Granted 1,182,800 30.81 Exercised (1,181,900 ) 14.99 Cancelled (232,500 ) 41.36 Outstanding at 12/31/09 5,567,700 $ 29.12 * Weighted Average For options exercised, the aggregate difference between the market price and strike price on the date of exercise was $22.7 in 2009, $10.8 in 2008 and $40.4 in 2007. The following tables summarize information about options outstanding at December31, 2009: RANGE OF EXERCISE PRICES NUMBER OFSHARES REMAINING CONTRACTUAL LIFE IN YEARS AVERAGE EXERCISE PRICE* Exercisable: $ 8.25-10.20 464,600 1.1 $ 10.16 12.54-13.96 958,300 2.6 13.28 25.31 437,800 4.0 25.31 32.11-32.23 1,340,700 5.6 32.17 3,201,400 3.8 22.39 Not Exercisable: 44.56 624,400 7.1 44.56 45.74 601,700 8.1 45.74 30.81 1,140,200 9.1 30.81 2,366,300 8.3 38.23 5,567,700 5.7 $ 29.12 * Weighted Average The fair value of restricted stock awards was determined based on the stock price at the award date. Certain restricted stock awards granted in 2008 and 2007 contain conditions tied to the Companys performance over a five year period. Compensation expense for awards with performance conditions is recorded only when it is probable that the requirements will be achieved. Compensation expense related to restricted stock awards with only service conditions is recognized over the requisite service period. Realized tax benefits for 2009 of $7.1 and 2008 of $3.7 related to the excess of deductible amounts over compensation costs recognized have been classified as a financing cash flow. Stock based compensation expense was $9.5, $10.2 and $12.3 in 2009, 2008 and 2007 respectively. As of Decem

SEGMENT AND RELATED INFORMATION

SEGMENT AND RELATED INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
SEGMENT AND RELATED INFORMATION	S. SEGMENT AND RELATED INFORMATION PACCAR operates in two principal segments, Truck and Financial Services. The Truck segment includes the manufacture of trucks and the distribution of related aftermarket parts, both of which are sold through a network of independent dealers. This segment derives a large proportion of its revenues and operating profits fromoperations in North America and Europe. The Financial Services segment is composed of finance and leasing products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe. Included in All Other is PACCARs industrial winch manufacturing business. Also within this category are other sales, income and expenses not attributable to a reportable segment, including a portionof corporate expense. Intercompany interest income on cash advances to the financial services companies is included in All Other and was nil, $17.2 and $24.9 for 2009, 2008 and2007, respectively. Included in All Other income before income taxes of $42.2 in 2009 was $66.0 of curtailment gains and $22.2 of expense related to economic hedges. Geographic revenues from external customers are presented based on the country of the customer. PACCAR evaluates the performance of its Truck segment based on operating profits, which excludes investment income, other income and expense and income taxes. The Financial Services segments performance is evaluated based on income before income taxes. Geographic Area Data 2009 2008 2007 Revenues: United States $ 3,594.4 $ 4,765.6 $ 5,517.5 Europe 2,828.3 7,023.4 6,159.6 Other 1,663.8 3,183.5 3,544.6 $ 8,086.5 $ 14,972.5 $ 15,221.7 Property, plant and equipment, net: United States $ 814.6 $ 820.7 $ 621.1 The Netherlands 452.8 467.3 480.7 Other 490.3 494.8 540.8 $ 1,757.7 $ 1,782.8 $ 1,642.6 Equipment on operating leases, net: United States $ 686.6 $ 634.9 $ 464.4 Germany 362.7 358.4 243.3 United Kingdom 349.7 290.9 342.8 Mexico 186.7 212.4 186.6 Other 431.3 463.5 570.8 $ 2,017.0 $ 1,960.1 $ 1,807.9 Business Segment Data: 2009 2008 2007 Net sales and revenues: Truck $ 7,388.6 $ 14,142.7 $ 14,295.7 Less intersegment (394.6 ) (595.3 ) (441.4 ) Net Truck 6,994.0 $ 13,547.4 $ 13,854.3 All Other 82.7 162.2 176.1 Truck and Other 7,076.7 $ 13,709.6 $ 14,030.4 Financial Services 1,009.8 1,262.9 1,191.3 $ 8,086.5 $ 14,972.5 $ 15,221.7 Business S

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
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		364,195,044
Entity Public Float			$11,500,000,000