PACCAR 2011 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2011 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 90

  • 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
  • 88
  • 89
  • 90

Information for all plans with accumulated benefit obligation in excess of plan assets is as follows:
At December 31, 2011 2010
Projected benefit obligation $ 304.8 $ 266.5
Accumulated benefit obligation 286.7 253.7
Fair value of plan assets 191.1 193.9
The components of pension expense are as follows:
Year Ended December 31, 2011 2010 2009
Service cost $ 45.5 $ 37.5 $ 36.2
Interest on projected benefit obligation 81.6 76.5 71.1
Expected return on assets (105.1) (98.2) (93.1)
Amortization of prior service costs 1.5 1.8 1.7
Recognized actuarial loss 24.7 14.7 9.5
Curtailment gain (.1)
Net pension expense $ 48.2 $ 32.3 $ 25.3
Multi-employer Plans: The Company participates in multi-employer plans in the U.S. and Europe. These are
typically under collective bargaining agreements and cover its union-represented employees. The Company’s
participation in the following multi-employer plans for the years ended December 31 follows:
PENSION COMPANY
PLAN CONTRIBUTIONS
PENSION PLAN EIN NUMBER 2011 2010 2009
Metal and Electrical Engineering Industry Pension Fund 135668 $ 22.7 $ 22.2 $ 28.8
Western Metal Industry Pension Plan 91-6033499 001 1.8 .5 .7
Other Plans .6 .5 1.1
$ 25.1 $ 23.2 $ 30.6
The Company contributions shown in the table above approximates the multi-employer pension expense for each
of the years ended December 31, 2011, 2010 and 2009, respectively.
Metal and Electrical Engineering Industry Pension Fund is a multi-employer union plan incorporating all DAF
employees in the Netherlands and is covered by a collective bargaining agreement that will expire on June 30, 2013.
The Company’s contributions were less than 5% of the total contributions to the plan for the last two reporting
periods ending December 2010. The plan is required by law (the Netherlands Pension Act) to have a coverage ratio
in excess of 100%. Because the coverage ratio of the plan is currently less than 100%, a funding improvement plan
has been implemented which requires additional premiums to be paid by the Company.
The Western Metal Industry Pension Plan is located in the U.S. and is covered by a collective bargaining agreement
that will expire on October 30, 2015. In accordance with the U.S. Pension Protection Act of 2006, the plan was
certified as critical (red) status and a funding improvement plan has been implemented requiring an under-funded
penalty of approximately 10% of the base contribution. For the last two reporting periods ending December 2010,
contributions by the Company were greater than 5% and less than 10% of the total contributions to the plan.
Other plans are principally located in the U.S. For the last two reporting periods, none are under funding
improvement plans and Company contributions to these plans are less than 5% of each plan’s total contributions.
There were no significant changes for the multi-employer plans in the periods presented that affected comparability
between periods.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2011, 2010 and 2009 (currencies in millions)