PACCAR 2010 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2010 PACCAR annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 87

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

Year Ended December 31, 2010 2009 2008
Components of Pension Expense:
Service cost $ 37.5 $ 36.2 $ 46.6
Interest on projected benefit obligation 76.5 71.1 73.9
Expected return on assets (98.2) (93.1) (92.8)
Amortization of prior service costs 1.8 1.7 2.4
Recognized actuarial loss 14.7 9.5 3.0
Curtailment (gain) loss (.1) .9
Net pension expense $ 32.3 $ 25.3 $ 34.0
Pension expense for multi-employer and foreign-insured plans was $33.8, $41.2, and $45.8 in 2010, 2009 and 2008.
The Company has certain defined contribution benefit plans whereby it generally matches employee contributions
up to 5% of base wages. The Company match was 3%, 1% and 5% in 2010, 2009 and 2008, respectively. The
majority of participants in these plans are non-union employees located in the United States. Expenses for these
plans were $13.8, $6.8 and $22.1 in 2010, 2009 and 2008, respectively.
During the second quarter of 2009, the Company discontinued subsidizing postretirement medical costs for the
majority of its U.S. employees and recognized a curtailment gain of $47.7. The Company also recognized a
curtailment gain of $18.3 in the third quarter of 2009 for the discontinuation of postretirement healthcare related
to the permanent closure of the Peterbilt facility in Madison, Tennessee.
The following data relates to unfunded postretirement medical and life insurance plans:
2010 2009
Change in Projected Benefit Obligation:
Benefit obligation at January 1 $ 6.7 $ 80.9
Interest cost .3 .5
Benefits paid (2.1) (3.2)
Curtailment gain (66.0)
Actuarial loss (gain) .6 (5.5)
Projected benefit obligation at December 31 5.5 6.7
Unfunded status at December 31 $ (5.5) $ (6.7)
Amounts Recorded in Balance Sheet:
Other liabilities $ (5.5) $ (6.7)
Accumulated other comprehensive (income) loss:
Actuarial gain (.5) (.9)
Year Ended December 31, 2010 2009 2008
Components of Retiree Expense:
Service cost $ 3.2
Interest cost $ .3 $ .5 4.7
Recognized actuarial loss
Recognized prior service cost .1
Curtailment gain (66.0)
Recognized net initial obligation .4
Net retiree expense (income) $ .3 $ (65.5) $ 8.4
63
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
December 31, 2010, 2009 and 2008 (currencies in millions)