PACCAR 2009 Annual Report Download - page 34

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PACCAR Inc and Subsidiaries
3
The provision for losses on receivables is summarized below:
2009 2008
Provision Increase Provision for
Net Decrease in for losses on Net (decrease) in losses on
Charge-offs allowance receivables Charge-offs allowance receivables
U.S. and Canada $ 63.9 $ (14.1) $ 49.8 $ 85.7 $ (5.8) $ 79.9
Europe 43.6 (2.0) 41.6 11.8 3.2 15.0
Mexico and Australia 14.3 (1.3) 13.0 7.3 .7 8.0
$ 121.8 $ (17.4) $ 104.4 $ 104.8 $ (1.9) $ 102.9
The provision for losses on receivables in 2009 of $104.4 million was comparable to 2008 as higher net portfolio
charge-offs in Europe, Mexico and Australia were offset by lower net charge-offs in the U.S. and Canada. There was
a decrease in the allowance for losses in all markets due to declining receivable portfolios.
2008 Compared to 2007:
2008 2007 % change
New loan and lease volume:
U.S. and Canada $ 1,674.0 $ 2,195.6 (24)
Europe 947.6 923.5 3
Mexico and Australia 728.6 812.1 (10)
$ 3,350.2 $ 3,931.2 (15)
Average earning assets:
U.S. and Canada $ 5,692.4 $ 6,517.1 (13)
Europe 3,065.6 2,360.9 30
Mexico and Australia 1,621.0 1,279.6 27
$ 10,379.0 $ 10,157.6 2
Average earning assets by product:
Loans and finance leases $ 6,295.3 $ 6,461.9 (3)
Dealer wholesale financing 1,693.0 1,507.3 12
Equipment on lease and other 2,390.7 2,188.4 9
$ 10,379.0 $ 10,157.6 2
Revenues:
U.S. and Canada $ 602.9 $ 682.8 (12)
Europe 429.3 320.2 34
Mexico and Australia 230.7 188.3 23
$ 1,262.9 $ 1,191.3 6
Revenue by product:
Loans and finance leases $ 567.3 $ 561.5 1
Dealer wholesale financing 116.1 111.3 4
Equipment on lease and other 579.5 518.5 12
$ 1,262.9 $ 1,191.3 6
Income before taxes $ 216.9 $ 284.1 (24)
PFS revenues increased 6% in 2008 to $1.26 billion from $1.19 billion in 2007 due to higher earning assets in all
markets outside the U.S. and Canada partially offset by lower market interest rates. Revenues in the U.S. and Canada
declined 12%, principally as a result of lower average assets. Total average assets declined in the U.S. and Canada due
to lower new business volume from fewer new trucks sold and lower finance market share which declined from
29% to 28%. The decline in share is due to competition from banks and independent finance companies. Revenues