PACCAR 2012 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2012 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 94

  • 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
  • 91
  • 92
  • 93
  • 94


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)
A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows:
2012 2011 2010
Statutory rate 35.0% 35.0% 35.0%
Effect of:
Tax on foreign earnings (3.1) (3.3) (3.9)
Other, net (.1) (.9) (.4)
31.8% 30.8% 30.7%
The Company has not provided a deferred tax liability for the temporary differences of approximately $3,900.0
related to the investments in foreign subsidiaries that are considered to be indefinitely reinvested. The amount of
the deferred tax liability would be approximately $740.0 as of December 31, 2012.
Included in domestic taxable income for 2012, 2011 and 2010 are $256.0, $311.0 and $169.0 of foreign earnings,
respectively, which are not indefinitely reinvested, for which domestic taxes of $22.1, $28.5 and $16.5, respectively,
were provided as the difference between the domestic and foreign rate on those earnings.
At December 31, 2012, the Company had net operating loss carryforwards of $426.3, of which $192.7 related to
foreign subsidiaries and $233.6 related to states in the U.S. The related deferred tax asset was $64.2. The
carryforward periods range from five years to indefinite, subject to certain limitations under applicable laws. The
future tax benefits of net operating loss carryforwards are evaluated on a regular basis, including a review of
historical and projected operating results.
The tax effects of temporary differences representing deferred tax assets and liabilities are as follows:
At December 31, 2012 2011
Assets:
Accrued expenses $ 179.9 $ 138.6
Postretirement benefit plans 64.4 94.1
Net operating loss carryforwards 64.2 58.6
Allowance for losses on receivables 50.4 50.1
Tax credit carryforwards 15.8
Other 83.3 89.1
442.2 446.3
Valuation allowance (21.2) (16.4)
421.0 429.9
Liabilities:
Financial Services leasing depreciation (775.8) (721.8)
Depreciation and amortization (241.4) (161.3)
Other (14.1) (12.1)
(1,031.3) (895.2)
Net deferred tax liability $ (610.3) $ (465.3)