PACCAR 2012 Annual Report Download - page 69

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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, 2012, 2011 and 2010 (currencies in millions)
The commercial paper and term notes of $7,492.4 and $6,269.1 at December 31, 2012 and 2011 include a net effect
of fair value hedges and unamortized discounts of $7.4 and $7.1, respectively. The effective rate is the weighted
average rate as of December 31, 2012 and 2011 and includes the effects of interest-rate contracts.
The annual maturities of the Financial Services borrowings are as follows:
commercial bank term
Beginning January 1, 2013 paper loans notes total
2013 $ 3,325.4 $ 18.4 $ 550.0 $ 3,893.8
2014 180.8 1,545.8 1,726.6
2015 23.1 1,454.6 1,477.7
2016
2017 15.4 609.2 624.6
$ 3,325.4 $ 237.7 $ 4,159.6 $ 7,722.7
Interest paid on borrowings was $149.9, $192.1 and $230.2 in 2012, 2011 and 2010, respectively. For the years ended
December 31, 2012, 2011 and 2010, the Company capitalized interest on borrowings of $10.3 in Truck, Parts and
Other in each respective year.
The primary sources of borrowings in the capital markets are commercial paper and medium-term notes issued in
the public markets, and to a lesser extent, bank loans. The medium-term notes are issued by PACCAR Inc, PACCAR
Financial Corp. (PFC), PACCAR Financial Europe and PACCAR Financial Mexico.
In December 2011, PACCAR Inc filed a shelf registration under the Securities Act of 1933. The current registration
expires in the fourth quarter of 2014 and does not limit the principal amount of debt securities that may be issued
during the period. The total amount of medium-term notes outstanding for PACCAR Inc as of December 31, 2012
was $500.0.
In November 2012, the Company’s U.S. finance subsidiary, PFC, filed a shelf registration under the Securities Act of
1933 effective for a three year period. The total amount of medium-term notes outstanding for PFC as of
December 31, 2012 was $2,700.0. In February 2013, PFC issued $500.0 of medium-term notes under this
registration. The registration expires in the fourth quarter of 2015 and does not limit the principal amount of debt
securities that may be issued during that period.
At December 31, 2012, the Company’s European finance subsidiary, PACCAR Financial Europe, had €717.2 available
for issuance under a €1,500.0 medium-term note program registered with the London Stock Exchange. The
program was renewed in the second quarter of 2012 and is renewable annually through the filing of a new
prospectus.
In April 2011, PACCAR Financial Mexico registered a 10,000.0 peso medium-term note and commercial paper
program with the Comision Nacional Bancaria y de Valores. The registration expires in 2016 and limits the amount
of commercial paper (up to one year) to 5,000.0 pesos. At December 31, 2012, 7,330.0 pesos remained available
for issuance.
The Company has line of credit arrangements of $3,680.6, of which $3,442.9 were unused at December 31, 2012.
Included in these arrangements are $3,000.0 of syndicated bank facilities. Of the $3,000.0 syndicated bank facilities,
$1,000.0 matures in June 2013, $1,000.0 matures in June 2016 and $1,000.0 matures in June 2017. 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 facilities for the year ended
December 31, 2012.