PACCAR 2011 Annual Report Download - page 52

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 Year Ended December 31, 2011 2010 2009
(millions)
Net income $1,042.3 $457.6 $ 111.9
Other comprehensive income (loss):
Unrealized (losses) gains on derivative contracts
Losses arising during the period (52.9) (76.8) (71.6)
Tax effect 18.8 26.2 21.3
Reclassification adjustment 47.7 123.1 119.9
Tax effect (17.7) (42.0) (35.7)
(4.1) 30.5 33.9
Unrealized gains (losses) on investments
Net holding gain (loss) 7.0 (1.2) (.3)
Tax effect (1.9) .5 .1
Reclassification adjustment 1.6 .6 .7
Tax effect (.6) (.3) (.2)
6.1 (.4) .3
Pension and postretirement
(Losses) gains arising during the period (281.9) (35.9) 73.0
Tax effect 99.0 12.7 (32.1)
Reclassification adjustment 26.2 16.5 11.2
Tax effect (9.0) (5.6) (3.9)
(165.7) (12.3) 48.2
Foreign currency translation (losses) gains (96.6) (12.7) 223.6
Net other comprehensive (loss) income (260.3) 5.1 306.0
Comprehensive Income $ 782.0 $462.7 $ 417.9
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
A. SIGNIFICANT ACCOUNTING POLICIES
Description of Operations: PACCAR Inc (the Company or PACCAR) is a multinational company operating in two
principal segments: (1) the design, manufacture and distribution of light-, medium- and heavy-duty commercial
trucks and related aftermarket parts and (2) finance and leasing products and services provided to customers and
dealers. PACCAR’s sales and revenues are derived primarily from North America and Europe. The Company also
operates in Australia and sells trucks and parts to customers in Asia, Africa and South America.
Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its
wholly owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions are
eliminated in consolidation.
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2011, 2010 and 2009 (currencies in millions)