PACCAR 2009 Annual Report Download - page 38

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PACCAR Inc and Subsidiaries
In November 2009, PFC filed a shelf registration under the Securities Act of 1933. In December 2009, PFC issued
$250.0 million of fixed rate medium-term notes under this registration. The registration expires in 2012 and does
not limit the principal amount of debt securities that may be issued during the period. The total amount of
medium-term notes outstanding for PFC as of December 31, 2009, was $1,148.5 million.
In the third quarter of 2009, PACCAR’s European finance subsidiary, PACCAR Financial Europe, renewed the
registration of a €1.5 billion medium-term note program with the London Stock Exchange. On December 31, 2009,
€850 million remained available for issuance. This program is renewable annually through the filing of a new
prospectus.
In June 2008, PACCAR Mexico registered a 7.0 billion peso medium-term note program with the Comision Nacional
Bancaria y de Valores. The registration expires in 2012 and at December 31, 2009, 6.1 billion pesos remained available
for issuance.
PACCAR believes its Financial Services companies will be able to continue funding receivables, servicing debt and
paying dividends through internally generated funds, access to public and private debt markets and lines of credit.
Commitments
The following summarizes the Company’s contractual cash commitments at December 31, 2009:
Maturity
Within More than
1 Year 1-3 Years 3-5 Years 5 Years Total
Borrowings* $ 3,580.5 $ 1,950.1 $ 522.6 $ 6,053.2
Interest on term debt** 123.8 127.8 39.3 290.9
Operating leases 27.0 27.2 8.8 $ .5 63.5
Purchase obligations 147.2 237.3 2.0 386.5
Other obligations 11.1 6.4 2.2 17.4 37.1
$ 3,889.6 $ 2,348.8 $ 574.9 $ 17.9 $ 6,831.2
* Borrowings also include commercial paper and other short-term debt.
** Includes interest on fixed- and floating-rate term debt. Interest on floating-rate debt is based on the applicable
market rates at December 31, 2009.
The Company had $6.83 billion of cash commitments. Of the total cash commitments for borrowings and interest
on term debt, $6.14 billion were related to the Financial Services segment. As described in Note J of the consolidated
financial statements, borrowings consist primarily of term notes 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 note borrowings. Purchase obligations are the Company’s contractual commitment to
acquire future production inventory and capital equipment. Other obligations include deferred cash compensation.
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