Back to GetFilings.com
1
FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [Fee Required]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1993
Commission File No. 0-6394
PACCAR INC
- -------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 91-0351110
- -------------------------------------- --------------------------------------
(State of incorporation) (I.R.S. Employer Identification No.)
777 - 106th Ave. N.E., Bellevue, Washington 98004
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (206) 455-7400
--------------
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $12 par value
Preferred Stock Purchase Rights
- -------------------------------------------------------------------------------
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for at least the past 90 days. Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ ]
The aggregate market value of the voting stock held by non-affiliates of the
registrant as of March 1, 1994:
Common Stock, $12 par value -- $2.003 billion
---------------------------------------------
The number of shares outstanding of the issuer's classes of common stock, as of
March 1, 1994:
Common Stock, $12 par value -- 38,858,042 shares
------------------------------------------------
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Annual Report to Stockholders for the year ended December 31,
1993 are incorporated by reference into Parts I and II.
Portions of the proxy statement for the annual stockholders meeting to be held
on April 26, 1994 are incorporated by reference into Part III.
2
PART I
ITEM 1. BUSINESS
(a) General Development of Business
PACCAR Inc (the Company), incorporated under the laws of Delaware in
1971, is the successor to Pacific Car and Foundry Company which was
incorporated in Washington in 1924. The Company traces its predecessors to
Seattle Car Manufacturing Company formed in 1905.
In the U.S., the Company's manufacturing operations are conducted
through unincorporated manufacturing divisions and a wholly owned subsidiary.
Each of the divisions and the subsidiary are responsible for at least one of
the Company's products. That responsibility includes new product development,
applications engineering, manufacturing and marketing. Outside the U.S., the
Company manufactures and sells through wholly owned subsidiary companies in
Canada and Australia, through a United Kingdom branch of a wholly owned U.S.
subsidiary, and through an affiliate in Mexico. In January 1994, the Company
increased its ownership in the Mexican affiliate from 49% to 55%. An export
sales division generally is responsible for export sales. Product financing and
leasing is offered through U.S. and foreign finance subsidiaries. A U.S.
subsidiary is responsible for retail automotive parts sales.
(b) Financial Information About Industry Segments and Geographic Areas
Information about the Company's industry segments and geographic areas
in response to Items 101(b), (c)(1)(i), and (d) of Regulation S-K appears on
page 39 of the Annual Report to Stockholders for the year ended December 31,
1993 and is incorporated herein by reference.
(c) Narrative Description of Business
The Company has three principal industry segments, (1) manufacture of
heavy-duty trucks and related parts, (2) automotive parts sales and related
services, and (3) finance and leasing services provided to customers and
dealers. Manufactured products also include industrial winches and oilfield
equipment. The Company competes in the truck parts aftermarket primarily
through its dealer network. It sells general automotive parts and accessories
through retail outlets. The Company's finance and leasing activities are
principally related to Company products and associated equipment.
TRUCKS
The Company designs and manufactures trucks which are marketed under
the Peterbilt, Kenworth, and Foden nameplates in the Class 8 diesel category
(having a minimum gross vehicle weight of 33,000 pounds). These vehicles, which
are built in five plants in the U.S. and one each in Australia, Canada, the
United Kingdom and Mexico, are used worldwide for over-the-road and off-highway
heavy-duty hauling of freight, petroleum, wood products, construction and other
materials. Heavy-duty trucks and related service parts are the largest segment
of the Company's business, accounting for 88% of total 1993 revenues.
-2-
3
The Company competes in the North American Class 6/7 markets with its
Mid-Ranger cab-over-engine vehicles. These medium-duty trucks are assembled at
PACCAR's factory in Quebec, Canada. This line of business represents a small
percentage of the Company's sales to date.
Trucks are sold to independent dealers for resale. The Company's U.S.
independent dealer network consists of 310 outlets. Trucks manufactured in the
U.S. for export are marketed by PACCAR International, a U.S. division. Those
sales are made through a worldwide network of 34 dealers. Trucks manufactured
in the United Kingdom, Australia, Canada, and Mexico are marketed domestically
through independent dealers and factory branches; trucks manufactured in these
countries for export are also marketed by PACCAR International.
The Company's trucks are essentially custom products and have a
reputation for high quality. Major components, such as engines, transmissions
and axles, as well as a substantial percentage of other components, are
purchased from component manufacturers pursuant to customer specifications.
Raw materials and other components used in the manufacture of trucks
are purchased from a number of suppliers. The Company is not limited to any
single source for any major component. No significant shortage of materials or
components was experienced in 1993 and none is expected in 1994. Manufacturing
inventory levels are based upon production schedules and orders are placed with
suppliers accordingly.
Replacement truck parts are sold and delivered to the Company's
independent dealers through the PACCAR Parts Division. Parts consist of
proprietary parts manufactured by PACCAR and finished parts purchased from
various suppliers. Replacement parts inventory levels are determined largely by
anticipated customer demand and the need for timely delivery.
There were six principal competitors in the U.S. Class 8 truck market
in 1993. PACCAR's share of that market was approximately 22% of registrations
in 1993. The market is highly competitive in price, quality and service, and
PACCAR is not dependent on any single customer for its sales. There are no
significant seasonal variations.
The Kenworth, Peterbilt and Foden trademarks and trade names are
recognized internationally and play an important role in the marketing of the
Company's truck products. The Company engages in a continuous program of
trademark and trade name protection in all marketing areas of the world.
Although the Company's truck products are subject to environmental
noise and emission controls, competing manufacturers are subject to the same
controls. The Company believes the cost of complying with noise and emission
controls will not be detrimental to its business.
The Company's truck sales backlog at year-end 1993 was estimated at
$1,268,000,000. This compares with $776,000,000 at year-end 1992. Production
of the year-end 1993 backlog is expected to be completed during 1994.
The number of persons employed by the Company in its truck business at
December 31, 1993 was approximately 8,000.
-3-
4
OTHER MANUFACTURED PRODUCTS
Other products manufactured by the Company account for 2% of total
1993 revenues. This group includes industrial winches and oilfield extraction
pumps and service equipment. Winches are manufactured in two U.S. plants and
are marketed under the Braden, Carco, and Gearmatic nameplates. Oilfield
extraction pumps and service equipment are manufactured in three U.S. plants
and marketed under the Trico and Kobe nameplates. The markets for all of these
products are highly competitive and the Company competes with a number of well
established firms.
The Braden, Carco, Gearmatic, Trico, and Kobe trademarks and trade
names are recognized internationally and play an important role in the
marketing of those products. The Company has an ongoing program of trademark
and trade name protection in all relevant marketing areas.
AUTOMOTIVE PARTS
The Company purchases and sells general automotive parts and
accessories, which account for 5% of total 1993 revenues, through 120 retail
locations under the names of Grand Auto and Al's Auto Supply. These locations
are supplied from the Company's distribution warehouses.
FINANCE COMPANIES
The Company has five wholly owned finance companies which provide
financing principally for trucks manufactured by the Company in the U.S.,
Canada, the United Kingdom, and Australia. These companies provide lease
financing for independent dealers selling PACCAR products and retail and
inventory financing for new and used Class 6, 7 and 8 trucks regardless of make
or model. Installment contracts are secured by the products financed.
LEASING COMPANIES
PACCAR Leasing Corporation (PLC), a wholly owned subsidiary,
franchises selected PACCAR truck dealers to engage in full service truck
leasing under the PacLease trade name. PLC also leases equipment to and
provides managerial and sales support for its franchisees. Similar leasing
operations are conducted in Canada through a division of PACCAR of Canada Ltd.
and in the United Kingdom through a wholly owned subsidiary, PacLease Limited.
RAILEASE Inc, a wholly owned subsidiary, leases railcars to a railroad.
GENERAL INFORMATION
PATENTS
The Company owns numerous patents which relate to all product lines.
Although these patents are considered important to the overall conduct of the
Company's business, no patent or group of patents is considered essential to a
material part of the Company's business.
-4-
5
RESEARCH AND DEVELOPMENT
The Company maintains a technical center where product testing and
research and development activities are conducted. Additional product
development activities are conducted within each separate manufacturing
division. Amounts spent on research and development were approximately $22
million in 1993, $21 million in 1992 and $22 million in 1991.
REGULATION
As a manufacturer of highway trucks, the Company is subject to the
National Traffic and Motor Vehicle Safety Act and Federal Motor Vehicle Safety
Standards promulgated by the National Highway Traffic Safety Administration.
The Company believes it is in compliance with the Act and applicable safety
standards.
Information regarding the effects that compliance with federal, state
and local provisions regulating the environment have on the Company's capital
and operating expenditures and the Company's involvement in environmental
cleanup activities is included in Management's Discussion and Analysis of
Financial Condition and Results of Operations and the Company's Consolidated
Financial Statements incorporated by reference in Items 7 and 8, respectively.
EMPLOYEES
On December 31, 1993, the Company employed a total of 11,800 persons,
excluding employees of its Mexican affiliate.
-5-
6
ITEM 2. PROPERTIES
The Company and its subsidiaries and affiliate own and operate
manufacturing plants in seven U.S. states, Canada, Australia, Mexico and the
United Kingdom including a new truck manufacturing facility in Renton,
Washington which was completed in 1993. Several parts distribution centers,
sales and service facilities and finance and administrative offices are also
operated in owned or leased premises in these five countries. A facility for
product testing and research and development is located in Skagit County,
Washington. Retail auto parts sales locations are primarily in leased premises
in five western states. The Company's corporate headquarters is located in
owned premises in Bellevue, Washington.
The Company considers substantially all of the properties used by its
businesses to be suitable for their intended purposes. Due to improved business
conditions in 1993 in the markets served by the Company's business segments,
many of the Company's manufacturing facilities operated at or near their
productive capacities.
Geographical locations of manufacturing plants within indicated
industry segments are as follows:
United
U.S. Canada Australia Mexico Kingdom
Trucks 5 1 1 1 1
Other 5 - - - -
Properties located in Torrance, Signal Hill and Pomona, California;
Bartlesville, Oklahoma; Kansas City, Missouri; and Seattle, Washington are
being held for sale. These properties were originally obtained principally as a
result of business acquisitions in 1987 and 1988.
ITEM 3. LEGAL PROCEEDINGS
The Company and its subsidiaries are parties to various lawsuits
incidental to the ordinary course of business. Management believes that the
disposition of such lawsuits will not materially affect the Company's
consolidated financial position.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the
fourth quarter of 1993.
-6-
7
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER
MATTERS
Common stock of the Company is traded over the counter on the NASDAQ
National Market System under the symbol PCAR. The table below reflects the
range of trading prices as reported by NASDAQ and cash dividends declared. The
cash dividends declared and stock prices have been restated to give effect to
the 15% stock dividend declared December 14, 1993. There were 3,292 record
holders of the common stock at December 31, 1993.
Cash Stock Price Cash Stock Price
1993 Dividends ----------------- 1992 Dividends ------------------
Quarter Declared High Low Quarter Declared High Low
- ------- --------- ------- ------- ------- -------- ------- -------
First $.22 $56-3/4 $49-1/8 First $.22 $53-1/4 $41-1/2
Second .22 57-7/8 46-1/2 Second .22 54-3/4 44-3/4
Third .22 56-3/4 51-1/8 Third .22 50-7/8 43-1/4
Fourth .22 61-1/8 52-7/8 Fourth .22 52-1/8 43
Year-End Year-End
Extra .86 Extra .25
The Company expects to continue paying regular cash dividends, although there
is no assurance as to future dividends because they are dependent upon future
earnings, capital requirements and financial conditions.
ITEM 6. SELECTED FINANCIAL DATA
Selected Financial Data on page 41 of the Annual Report to
Stockholders for the year ended December 31, 1993 are incorporated herein by
reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management's Discussion and Analysis of Financial Condition and
Results of Operations on pages 21 through 24 of the Annual Report to
Stockholders for the year ended December 31, 1993 is incorporated herein by
reference.
-7-
8
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The following consolidated financial statements of the registrant and
its subsidiaries, included in the Annual Report to Stockholders for the year
ended December 31, 1993 are incorporated herein by reference:
Consolidated Balance Sheets
-- December 31, 1993 and 1992
Consolidated Statements of Income
-- Years Ended December 31, 1993, 1992 and 1991
Consolidated Statements of Stockholders' Equity
-- Years Ended December 31, 1993, 1992 and 1991
Consolidated Statements of Cash Flows
-- Years Ended December 31, 1993, 1992 and 1991
Notes to Consolidated Financial Statements
-- December 31, 1993, 1992 and 1991
Quarterly Results (Unaudited) on page 41 of the Annual Report to Stockholders
for the year ended December 31, 1993 are incorporated herein by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
The registrant has not had any disagreements with its independent
auditors on accounting or financial disclosure matters.
-8-
9
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Item 401(a), (d), (e) and Item 405 of Regulation S-K:
Identification of directors, family relationships, business experience
and compliance with Section 16(a) of the Exchange Act on pages 3 and 4 of the
proxy statement for the annual stockholders meeting of April 26, 1994 is
incorporated herein by reference.
Item 401(b) of Regulation S-K:
Executive Officers of the registrant as of February 1, 1994:
Present Position and Other Position(s)
Name and Age Held During Last Five Years
- ------------ --------------------------------------
Charles M. Pigott (64) Chairman and Chief Executive Officer; previously President.
Mr. Pigott is the father of Mark C. Pigott, also an executive
officer, and brother of James C. Pigott, a director of the Company.
David J. Hovind (53) President; Executive Vice President from July 1987 to January 1992.
William E. Boisvert (51) Executive Vice President; Senior Vice President and Chief Financial
Officer from August 1988 to April 1989.
Michael A. Tembreull (47) Executive Vice President; Senior Vice President from September 1990 to
January 1992; previously General Manager, Peterbilt Division.
Mark C. Pigott (39) Executive Vice President; Senior Vice President from January 1990
to December 1993; previously Vice President. Mr. Pigott is the son of
Charles M. Pigott, a director of the Company and also an executive
officer, and nephew of James C. Pigott, a director of the Company.
Gary S. Moore (50) Senior Vice President; General Manager, Kenworth Truck Company from
April 1990 to August 1992; Senior Assistant General Manager, Kenworth
Truck Company from January 1990 to March 1990; previously General
Manager, Wagner Mining Equipment Company.
-9-
10
Present Position and Other Position(s)
Name and Age Held During Last Five Years
- ------------ --------------------------------------
G. Don Hatchel (49) Vice President, Controller; Assistant Vice President and Controller
from June 1990 to January 1991; Operations Controller from July 1989
to June 1990; previously Controller, Peterbilt Division.
G. Glen Morie (51) Vice President, General Counsel and Secretary.
Officers are elected annually but may be appointed or removed on interim dates.
ITEM 11. EXECUTIVE COMPENSATION
Compensation of Directors and Executive Officers and Related Matters
on pages 5 through 11 of the proxy statement for the annual stockholders
meeting of April 26, 1994 is incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Stock ownership information on pages 1 and 2 of the proxy statement
for the annual stockholders meeting of April 26, 1994 is incorporated herein by
reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Information on page 4 of the proxy statement for the annual
stockholders meeting of April 26, 1994 is incorporated herein by reference.
-10-
11
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) (1) and (2) - The response to this portion of Item 14 is
submitted as a separate section of this report.
(3) Listing of Exhibits (in order of assigned index numbers)
(3) Articles of incorporation and bylaws
(a) PACCAR Inc Certificate of Incorporation, as
amended to April 27, 1990 (incorporated by
reference to the Quarterly Report on Form
10-Q for the quarter ended March 31, 1990).
(b) PACCAR Inc Bylaws, as amended to April 28,
1987 (incorporated by reference to the
Quarterly Report on Form 10-Q for the quarter
ended March 31, 1987).
(4) Instruments defining the rights of security
holders, including indentures
(a) Rights agreement dated as of
December 21, 1989 between PACCAR Inc
and First Chicago Trust Company of
New York setting forth the terms of
the Series A Junior Participating
Preferred Stock, no par value per
share (incorporated by reference to
Exhibit 1 of the Current Report on
Form 8-K of PACCAR Inc dated
December 27, 1989).
(b) Indenture for Senior Debt Securities
dated as of December 1, 1983 between
PACCAR Financial Corp. and Citibank,
N.A., Trustee (incorporated by
reference to Exhibit 4.1 of the
Annual Report on Form 10-K of PACCAR
Financial Corp. for the year ended
December 31, 1983).
(c) First Supplemental Indenture dated
as of June 19, 1989 between PACCAR
Financial Corp. and Citibank, N.A.,
Trustee (incorporated by reference
to Exhibit 4.2 to PACCAR Financial
Corp.'s registration statement on
Form S-3, Registration No.
33-29434).
(d) Forms of Medium-Term Note, Series E
(incorporated by reference to
Exhibits 4.3A, 4.3B and 4.3C to
PACCAR Financial Corp.'s
Registration Statement on Form S-3
dated June 23, 1989, Registration
Number 33-29434, and Forms of
Medium-Term Note, Series E,
incorporated by reference to Exhibit
4.3B.1 to PACCAR Financial Corp.'s
Current Report on Form 8-K, dated
December 19, 1991, under Commission
File Number 0-12553).
Letter of Representation among PACCAR
Financial Corp., Citibank, N.A. and
the Depository Trust Company, Series
E, dated July 6, 1989 (incorporated
by reference to Exhibit 4.3 of
PACCAR Financial Corp.'s Annual
Report on Form 10-K, dated March 29,
1990. File Number 0-12553).
-11-
12
(e) Forms of Medium-Term Note, Series F
(incorporated by reference to
Exhibits 4.3A, 4.3B and 4.3C to
PACCAR Financial Corp.'s
Registration Statement on Form S-3
dated May 26, 1992, Registration
Number 33-48118).
Form of Letter of Representation among
PACCAR Financial Corp., Citibank,
N.A. and the Depository Trust
Company, Series F (incorporated by
reference to Exhibit 4.4 to PACCAR
Financial Corp.'s Registration
Statement on Form S-3 dated May 26,
1992, Registration Number 33-48118).
(f) Forms of Medium-Term Note, Series G
(incorporated by reference to
Exhibits 4.3A and 4.3B to PACCAR
Financial Corp.'s Registration
Statement on Form S-3 dated December
8, 1993, Registration Number 33-
51335).
Form of Letter of Representation among
PACCAR Financial Corp., Citibank,
N.A. and the Depository Trust
Company, Series G (incorporated by
reference to Exhibit 4.4 to PACCAR
Financial Corp.'s Registration
Statement on Form S-3 dated December
8, 1993, Registration Number
33-51335).
(10) Material contracts
(a) PACCAR Inc Incentive Compensation
Plan (incorporated by reference to
Exhibit (10)(a) of the Annual Report
on Form 10-K for the year ended
December 31, 1980).
(b) PACCAR Inc Deferred Compensation
Plan for Directors (incorporated by
reference to Exhibit (10)(b) of the
Annual Report on Form 10-K for the
year ended December 31, 1980).
(c) Supplemental Retirement Plan
(incorporated by reference to
Exhibit (10)(c) of the Annual Report
on Form 10-K for the year ended
December 31, 1980).
(d) 1981 Long Term Incentive Plan
(incorporated by reference to
Exhibit A of the 1982 Proxy
Statement, dated March 25, 1982).
(e) Amendment to 1981 Long Term
Incentive Plan (incorporated by
reference to Exhibit (10)(a) of the
Quarterly Report on Form 10-Q for
the quarter ended March 31, 1991).
(f) PACCAR Inc 1991 Long-Term Incentive
Plan (incorporated by reference to
Exhibit (10)(h) of the Quarterly
Report on Form 10-Q for the quarter
ended June 30, 1992).
(g) Amended and Restated Deferred
Incentive Compensation Plan.
(13) Annual report to security holders
Portions of the 1993 Annual Report to
Shareholders have been incorporated by
reference and are filed herewith.
(21) Subsidiaries of the registrant
-12-
13
(23) Consent of independent auditors
(24) Power of attorney
Powers of attorney of certain directors
(b) No reports on Form 8-K were filed for the three months ended
December 31, 1993.
(c) Exhibits
(d) Financial Statement Schedules -- The response to this portion
of Item 14 is submitted as a separate section of this report.
-13-
14
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
PACCAR Inc
-----------------------------------
Registrant
/s/ C. M. Pigott 3-24-94
-----------------------------------
C. M. Pigott, Director, Chairman and
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
/s/ W. E. Boisvert 3-24-94 /s/ G. D. Hatchel 3-24-94
- ------------------------------------- -------------------------------------
W. E. Boisvert G. D. Hatchel
Executive Vice President Vice President
(Principal Financial Officer) (Principal Accounting Officer)
*/s/ R. P. Cooley 3-24-94 */s/ J. C. Pigott 3-24-94
- ------------------------------------- --------------------------------------
R. P. Cooley J. C. Pigott
Director Director and Audit Committee Member
*/s/ J. M. Fluke, Jr. 3-24-94 */s/ J. W. Pitts 3-24-94
- ------------------------------------- --------------------------------------
J. M. Fluke, Jr. J. W. Pitts
Director and Audit Committee Member Director and Chairman of
Audit Committee
*/s/ H. J. Haynes 3-24-94 */s/ J. H. Wiborg 3-24-94
- ------------------------------------- --------------------------------------
H. J. Haynes J. H. Wiborg
Director Director
*/s/ D. J. Hovind 3-24-94 */s/ C. H. Hahn 3-24-94
- ------------------------------------- --------------------------------------
D. J. Hovind C. H. Hahn
Director Director
* Pursuant to power of attorney
-14-
15
ANNUAL REPORT ON FORM 10-K
ITEM 14(a)(1) AND (2), (c) AND (d)
LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
CERTAIN EXHIBITS
FINANCIAL STATEMENT SCHEDULES
YEAR ENDED DECEMBER 31, 1993
PACCAR INC AND SUBSIDIARIES
BELLEVUE, WASHINGTON
-15-
16
FORM 10-K -- ITEM 14(A)(1) AND (2)
PACCAR INC AND SUBSIDIARIES
LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
The following consolidated financial statements of PACCAR Inc and subsidiaries,
included in the Annual Report to Stockholders for the year ended December 31,
1993 are incorporated by reference in Item 8:
Consolidated Balance Sheets
-- December 31, 1993 and 1992
Consolidated Statements of Income
-- Years Ended December 31, 1993, 1992 and 1991
Consolidated Statements of Stockholders' Equity
-- Years Ended December 31, 1993, 1992 and 1991
Consolidated Statements of Cash Flows
-- Years Ended December 31, 1993, 1992 and 1991
Notes to Consolidated Financial Statements
-- December 31, 1993, 1992 and 1991
The following consolidated financial statement schedules of PACCAR Inc and
consolidated subsidiaries are included in Item 14(d):
Schedule VIII -- Allowances for Losses
Schedule IX -- Short-Term Borrowings
All other schedules for which provision is made in the applicable accounting
regulation of the Securities and Exchange Commission are not required under the
related instructions or are inapplicable, and therefore have been omitted.
-16-
17
PACCAR INC AND SUBSIDIARIES
SCHEDULE VIII - ALLOWANCES FOR LOSSES
(MILLIONS OF DOLLARS)
Additions
Balance at Charged to Balance
Year Ended Beginning Costs and at End
December 31: of Period Expenses Deductions(1) of Period
- ------------ ---------- ---------- ------------- ---------
1993
(A) MANUFACTURING $ 3.0 $ $ .8 $ 2.2
(B) FINANCIAL SERVICES 30.9 9.2 7.2 32.9
----- ----- ----- -----
$33.9 $ 9.2 $ 8.0 $35.1
1992
(A) Manufacturing $ 3.0 $ .2 $ .2 $ 3.0
(B) Financial Services 31.4 13.8 14.3 30.9
----- ----- ----- -----
$34.4 $14.0 $14.5 $33.9
1991
(A) Manufacturing $ 3.8 $ .9 $ 1.7 $ 3.0
(B) Financial Services 28.2 30.2 27.0 31.4
----- ----- ----- -----
$32.0 $31.1 $28.7 $34.4
(A) Allowance for losses deducted from trade receivables.
(B) Allowance for losses deducted from notes, contracts, and other
receivables.
(1) Uncollectible trade receivables, notes, contracts and other
receivables written off, net of recoveries.
PACCAR INC AND SUBSIDIARIES
SCHEDULE IX -- SHORT-TERM BORROWINGS
(MILLIONS OF DOLLARS)
End of Period
---------------------
Weighted Amount Outstanding Weighted Avg.
(A) Average During the Period Interest Rate
Year Ended Interest ------------------------ During the
December 31: Balance Rate Maximum Average(B) Period (C)
- ------------ ------- -------- ------- ---------- -------------
1993 $697.7 3.71% $707.9 $604.1 3.66%
1992 $581.7 4.38% $600.9 $535.8 4.59%
1991 $571.1 6.04% $638.8 $506.7 7.17%
(A) Short-term borrowings are comprised primarily of amounts owed by the
finance and leasing subsidiaries and represent commercial paper and
short-term notes with maturities of less than one year and bank lines
of credit which have no termination date but are reviewed annually for
renewal.
(B) The average amount outstanding during the period was computed by
dividing the total average monthly outstanding principal balances by
twelve.
(C) The weighted average interest rate during the period was computed by
dividing the actual interest expense by the average short-term
borrowings outstanding.
-17-