PACCAR 2010 Annual Report Download - page 69

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A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
2010 2009 2008
Balance at January 1 $ 37.0 $ 33.0 $ 48.7
Additions based on tax positions and settlements
related to the current year 2.5 1.1 7.1
Additions based on tax positions and settlements
related to the prior year 23.5 11.5 3.3
Reductions for tax positions of prior years (10.7) (7.2) (19.5)
Lapse of statute of limitations (9.2) (1.4) (6.6)
Balance at December 31 $ 43.1 $ 37.0 $ 33.0
The Company had $40.6 and $20.8 of related assets at December 31, 2010 and 2009. All of the unrecognized tax
benefits and related assets would impact the effective tax rate if recognized.
Interest and penalties are classified as income taxes in the accompanying statements of income and were not
significant during any of the three years ended December 31, 2010, 2009 and 2008. Amounts accrued for the
payment of penalties and interest at December 31, 2010 and 2009 were also not significant.
As of December 31, 2010, the United States Internal Revenue Service has completed examinations of the Company’s
tax returns for all years through 2006. The Company’s tax returns for other major jurisdictions remain potentially
subject to examination for the years ranging from 2004 through 2010.
N. S TO CK HO LD ER S ’ EQ UI TY
Accumulated Other Comprehensive Income (Loss): Following are the components of accumulated other
comprehensive income:
At December 31, 2010 2009 2008
Unrealized gain on investments $ .8 $ 1.4 $ 1.0
Tax effect (.3) (.5) (.4)
.5 .9 .6
Unrealized loss on derivative contracts (27.1) (73.4) (121.7)
Tax effect 9.2 25.0 39.4
(17.9) (48.4) (82.3)
Pension and postretirement:
Unrecognized:
Actuarial loss (465.1) (444.7) (525.9)
Prior service cost (13.9) (14.7) (16.0)
Net initial obligation (.7) (.6) (2.3)
Tax effect 167.3 159.9 195.9
(312.4) (300.1) (348.3)
Currency translation adjustment 371.1 383.8 160.2
Accumulated other comprehensive income (loss) $ 41.3 $ 36.2 $ (269.8)
Other Capital Stock Changes: In April 2010, the Company retired 409,000 of its common shares held as treasury
stock. PACCAR had 409,000 treasury shares at December 31, 2009 and 2008.
66
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)