PACCAR 2009 Annual Report Download - page 55

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52 The annual maturities of the financial services borrowings are as follows:
commercial bank term
Beginning January 1, 2010 paper loans 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 December 31, 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 December 31, 2009, is $870.0. The current registration
expires in 2011 and does not limit the principal amount of debt securities that may be issued during the period.
In November 2009, the Company’s 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 December 31, 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 December 31, 2009, PACCAR’s 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 registration expires in 2012 and at December 31, 2009, 6,100 pesos remained available
for issuance.
The Company has line of credit arrangements of $3,668.2, of which $3,352.6 was unused at the end of December
2009. Included in these arrangements is $3,000.0 of syndicated bank facilities. Of the $3,000.0 bank facilities,
$2,000.0 matures in June 2010 and $1,000.0 matures in June 2012. The Company intends to replace these credit
facilities as they expire with facilities of similar amounts and duration. These credit facilities are maintained
primarily to provide backup liquidity for commercial paper borrowings and maturing medium-term notes. There
were no borrowings under the syndicated bank lines for the year ended December 31, 2009.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2009, 2008 and 2007 (currencies in millions)