PACCAR 2011 Annual Report Download - page 65

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I. BORROWINGS AND CREDIT ARRANGEMENTS
Truck and Other long-term debt at December 31, 2011 and 2010, consisted of $150.0 of notes with an effective
interest rate of 6.9% which mature in 2014.
Financial Services borrowings include the following:
2011 2010
EFFECTIVE EFFECTIVE
At December 31, RATE BORROWINGS RATE BORROWINGS
Commercial paper 1.3% $ 3,673.6 2.2% $ 2,126.4
Medium-term bank loans 6.9% 236.3 7.8% 245.3
3,909.9 2,371.7
Term notes 3.4% 2,595.5 4.6% 2,730.8
2.3% $ 6,505.4 3.8% $ 5,102.5
The term notes of $2,595.5 and $2,730.8 at December 31, 2011 and 2010 include an increase in fair value of $7.1
and $9.6, respectively, for notes designated as fair value hedges. The effective rate is the weighted average rate as of
December 31, 2011 and 2010 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, 2012 PAPER LOANS NOTES TOTAL
2012 $ 3,673.6 $ 45.6 $ 620.0 $ 4,339.2
2013 17.2 550.0 567.2
2014 173.5 1,288.8 1,462.3
2015 129.6 129.6
$ 3,673.6 $ 236.3 $ 2,588.4 $ 6,498.3
Interest paid on borrowings was $192.1, $230.2 and $267.6 in 2011, 2010 and 2009, respectively. For the years ended
December 31, 2011, 2010 and 2009, the Company capitalized interest on borrowings of $10.3, $10.3 and $2.3,
respectively, in Truck and Other.
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, 2011
is $870.0.
In November 2009, the Company’s U.S. finance subsidiary, PFC, filed a shelf registration under the Securities Act of
1933. The total amount of medium-term notes outstanding for PFC as of December 31, 2011 was $1,350.0. The
registration expires in the fourth quarter of 2012 and does not limit the principal amount of debt securities that
may be issued during the period.
At December 31, 2011, PACCAR’s European finance subsidiary, PACCAR Financial Europe, had €1,100.0 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 2011 and is renewable annually through the filing of a new
prospectus.

NOTES TO CONSOLIDATED F I NANCIAL STATEMENTS
December 31, 2011, 2010 and 2009 (currencies in millions)