<PAGE>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 1999
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _________ to _________
Commission File No. 0-6394
PACCAR INC
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(Exact name of Registrant as specified in its charter)
Delaware 91-0351110
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
777 - 106th Ave. N.E., Bellevue, WA 98004
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(Address of principal executive offices) (Zip Code)
(425) 468-7400
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since last
report)
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 period 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 the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $1 par value----78,322,506 shares as of October 29, 1999
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<PAGE>
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FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
<TABLE>
<CAPTION>
INDEX
PAGE
----
<S> <C>
PART I. FINANCIAL INFORMATION:
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Statements of Income --
Three and Nine Months Ended September 30, 1999 and 1998 (unaudited)...................... 3
Consolidated Balance Sheets --
September 30, 1999 (unaudited), and December 31, 1998.................................... 4
Condensed Consolidated Statements of Cash Flows --
Nine Months Ended September 30, 1999 and 1998 (unaudited)................................ 6
Notes to Consolidated Financial Statements.................................................. 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS......................................................... 10
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK............................ 14
PART II. OTHER INFORMATION:
ITEM 5. OTHER INFORMATION..................................................................... 15
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K...................................................... 15
SIGNATURE.......................................................................................... 16
INDEX TO EXHIBITS.................................................................................. 17
</TABLE>
-2-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
PART I--FINANCIAL INFORMATION
<TABLE>
<CAPTION>
ITEM 1. FINANCIAL STATEMENTS
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Consolidated Statements of Income (Unaudited)
(Millions except per share data)
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Three Months Ended Nine Months Ended
September 30 September 30
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
TRUCK AND OTHER:
Net sales $ 2,174.8 $ 1,857.3 $ 6,424.6 $ 5,459.0
Costs and Expenses
Cost of sales 1,823.7 1,582.3 5,422.1 4,639.0
Selling, general and administrative 152.4 147.2 443.0 418.8
Interest 3.8 3.2 10.1 9.6
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1,979.9 1,732.7 5,875.2 5,067.4
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Truck and Other Income
Before Income Taxes 194.9 124.6 549.4 391.6
FINANCIAL SERVICES:
Revenues 95.3 81.4 269.1 231.9
Costs and Expenses
Interest and other 55.1 45.1 154.2 127.0
Selling, general and administrative 14.4 15.0 44.3 43.4
Provision for losses on receivables 5.9 3.6 13.5 9.5
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75.4 63.7 212.0 179.9
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Financial Services Income
Before Income Taxes 19.9 17.7 57.1 52.0
Investment income 9.3 9.0 26.5 23.7
Other, Net 3.7 .6 1.4 5.9
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Total Income Before Income Taxes 227.8 151.9 634.4 473.2
Income Taxes 83.1 55.3 230.7 171.3
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Net Income $ 144.7 $ 96.6 $ 403.7 $ 301.9
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Net Income Per Share:
Basic $ 1.85 $ 1.24 $ 5.16 $ 3.87
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Diluted $ 1.83 $ 1.23 $ 5.12 $ 3.84
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Weighted Average Number of
Common Shares Outstanding 78.3 78.1 78.2 78.1
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Dividends declared and paid per share $ .20 $ .15 $ .60 $ .45
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</TABLE>
See Notes to Consolidated Financial Statements.
-3-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
<TABLE>
<CAPTION>
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Consolidated Balance Sheets September 30 December 31
ASSETS (Millions of Dollars) 1999 1998*
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<S> <C> <C>
TRUCK AND OTHER: (Unaudited)
Current Assets
Cash and cash equivalents $ 482.8 $ 410.3
Trade and other receivables, net of allowance for losses 661.6 645.6
Marketable securities 469.5 404.8
Inventories 471.1 511.1
Deferred taxes and other current assets 114.1 98.2
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Total Truck and Other Current Assets 2,199.1 2,070.0
Deferred taxes, goodwill and other 295.8 261.9
Property, plant and equipment, net 876.2 827.7
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Total Truck and Other Assets 3,371.1 3,159.6
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FINANCIAL SERVICES:
Cash and cash equivalents 11.5 22.1
Finance and other receivables, net of allowance for losses 4,462.1 3,790.4
Less unearned interest (301.6) (267.4)
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4,160.5 3,523.0
Equipment on operating leases, net 81.3 65.3
Other assets 30.5 24.8
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Total Financial Services Assets 4,283.8 3,635.2
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$7,654.9 $6,794.8
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</TABLE>
-4-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
<TABLE>
<CAPTION>
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September 30 December 31
LIABILITIES AND STOCKHOLDERS' EQUITY 1999 1998*
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<S> <C> <C>
TRUCK AND OTHER: (Unaudited)
Current Liabilities
Accounts payable and accrued expenses $1,422.1 $1,293.9
Current portion of long-term debt and commercial paper 96.3 43.8
Dividend payable 125.0
Income taxes and other 87.2 56.4
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Total Truck and Other Current Liabilities 1,605.6 1,519.1
Long-term debt 192.9 204.3
Other, including deferred taxes 347.2 336.4
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Total Truck and Other Liabilities 2,145.7 2,059.8
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FINANCIAL SERVICES:
Accounts payable and accrued expenses 39.8 83.6
Commercial paper and bank loans 1,800.9 1,617.8
Long-term debt 1,392.7 1,106.9
Deferred income taxes and other 172.1 162.5
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Total Financial Services Liabilities 3,405.5 2,970.8
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STOCKHOLDERS' EQUITY
Preferred stock, no par value:
authorized 1.0 million shares, none issued
Common stock, $1 par value: authorized 200.0 million
shares, 78.3 million shares issued and outstanding 78.3 78.1
Additional paid-in capital 626.7 620.2
Retained earnings 1,542.0 1,185.7
Currency translation and
net unrealized investment gains or (losses) (143.3) (119.8)
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Total Stockholders' Equity 2,103.7 1,764.2
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$7,654.9 $6,794.8
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</TABLE>
* The December 31, 1998, consolidated balance sheet has been derived from
audited financial statements.
See Notes to Consolidated Financial Statements.
-5-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
<TABLE>
<CAPTION>
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Condensed Consolidated Statements of Cash Flows (Unaudited)
(Millions of Dollars)
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Nine Months Ended September 30 1999 1998
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<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 654.9 $ 508.9
INVESTING ACTIVITIES:
Finance receivables originated (1,706.2) (1,376.4)
Collections on finance receivables 1,197.5 960.3
Net increase in wholesale receivables (133.6) (15.4)
Marketable securities purchased (780.6) (1,006.8)
Marketable securities maturities and sales 710.9 974.9
Acquisition of businesses, net of cash acquired (75.2)
Acquisition of property, plant and equipment (170.3) (112.0)
Acquisition of equipment for operating leases (33.3) (17.7)
Proceeds from asset disposals 45.7 41.7
Other assets (62.1) (44.7)
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Net Cash Used in Investing Activities (932.0) (671.3)
FINANCING ACTIVITIES:
Cash dividends paid (172.3) (151.9)
Stock option transactions 4.5 6.5
Net increase in commercial paper and bank loans 169.9 422.8
Proceeds of long-term debt 737.2 464.3
Payment of long-term debt (387.2) (545.9)
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Net Cash Provided by Financing Activities 352.1 195.8
Effect of exchange rate changes on cash (13.1) 5.0
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Net Increase in Cash and Equivalents 61.9 38.4
Cash and cash equivalents at beginning of period 432.4 337.9
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Cash and cash equivalents at end of period $ 494.3 $ 376.3
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</TABLE>
See Notes to Consolidated Financial Statements.
-6-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
Notes to Consolidated Financial Statements (In millions, except share amounts)
NOTE A--Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared
in accordance with the instructions to Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the three- and nine-month periods ended
September 30, 1999, are not necessarily indicative of the results that may be
expected for the year ended December 31, 1999. For further information, refer to
the consolidated financial statements and footnotes included in the Company's
annual report on Form 10-K for the year ended December 31, 1998.
Reclassifications: Certain prior year amounts have been reclassified to conform
to the 1999 presentation.
<TABLE>
<CAPTION>
NOTE B--Inventories
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September 30 December 31
1999 1998
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<S> <C> <C>
Inventories at FIFO cost: (Unaudited)
Finished products $322.3 $328.2
Work in process and raw materials 279.5 308.2
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601.8 636.4
Less excess of FIFO cost over LIFO (130.7) (125.3)
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$471.1 $511.1
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</TABLE>
Under the LIFO method of accounting (used for approximately 57% of September 30,
1999, inventories), an actual valuation can be made only at the end of each year
based on year-end inventory levels and costs. Accordingly, interim valuations
are based on management's estimates of those year-end amounts. Based on present
estimates of year-end inventory levels, no significant liquidations of LIFO
inventory quantities are expected. Because inventory levels and costs are
subject to many forces beyond management's control, the present estimates are
subject to the final year-end LIFO inventory valuation.
-7-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
Notes to Consolidated Financial Statements (In millions, except share amounts)
NOTE C--Stockholders' Equity
Stock Option Exercises
On January 1, 1999, approximately 550,000 additional stock options previously
granted to PACCAR employees became exercisable. For the nine months ended
September 30, 1999, PACCAR issued an additional 186,000 common shares as a
result of employee stock option exercises.
Diluted Earnings Per Share
The following table shows the additional shares added to basic shares
outstanding to calculate diluted earnings per share. These amounts represent
primarily the dilutive effect of stock options outstanding.
<TABLE>
<CAPTION>
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Three Months Ended Nine Months Ended
September 30 September 30
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Additional shares 559,000 551,000 549,000 634,000
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</TABLE>
Comprehensive Income
The components of comprehensive income, net of any related tax, are as follows:
<TABLE>
<CAPTION>
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Three Months Ended Nine Months Ended
September 30 September 30
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Net income $ 144.7 $ 96.6 $ 403.7 $ 301.9
Foreign currency translation adjustments 12.9 17.4 (20.5) 8.4
Net unrealized (losses) gains
on securities (.7) 1.3 (3.0) 1.2
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Total comprehensive income $ 156.9 $ 115.3 $ 380.2 $ 311.5
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</TABLE>
Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss was comprised of the following:
<TABLE>
<CAPTION>
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September 30 December 31
1999 1998
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<S> <C> <C>
Accumulated foreign currency translation adjustments $(142.3) $(121.8)
Net unrealized (losses) gains on securities (1.0) 2.0
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Net accumulated other comprehensive loss $(143.3) $(119.8)
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</TABLE>
Net accumulated other comprehensive loss is reported in the accompanying
consolidated financial statements as "Currency translation and net unrealized
investment gains or (losses)".
-8-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Notes to Consolidated Financial Statements
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NOTE D--Segment Information
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Three Months Ended Nine Months Ended
September 30 September 30
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Revenues:
Net sales
Trucks $2,096.2 $1,778.9 $6,199.5 $5,237.8
All other 78.6 78.4 225.1 221.2
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2,174.8 1,857.3 6,424.6 5,459.0
Financial Services revenues 95.3 81.4 269.1 231.9
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$2,270.1 $1,938.7 $6,693.7 $5,690.9
Truck income before taxes $ 191.4 $ 115.9 $ 543.6 $ 369.8
All other 7.3 11.9 15.9 31.4
Interest expense (3.8) (3.2) (10.1) (9.6)
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194.9 124.6 549.4 391.6
Financial Services income before taxes 19.9 17.7 57.1 52.0
Investment income 9.3 9.0 26.5 23.7
Other, net 3.7 .6 1.4 5.9
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$ 227.8 $ 151.9 $ 634.4 $ 473.2
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</TABLE>
-9-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
PACCAR's consolidated net sales for the third quarter grew 17%
to $2.2 billion compared to the $1.9 billion recorded in the
third quarter of 1998. For the first nine months of 1999, sales
totaled $6.4 billion, an increase of 18% compared to the $5.5
billion for the first nine months of 1998. Net income for the
third quarter of $144.7 million exceeded the $96.6 million
earned in the same period last year by 50%. Year to date net
income of $403.7 million was 34% ahead of the comparable prior
year amount of $301.9 million.
Truck segment net sales in 1999 of $2.1 billion in the third
quarter and $6.2 billion for the first nine months increased 18%
compared to the corresponding periods in 1998. While industry
orders have moderated, truck backlogs remain strong. Third
quarter Truck segment income before taxes of $191.4 million grew
65% over year-earlier levels. For the first nine months of 1999,
Truck segment income before taxes of $543.6 million improved 47%
compared to 1998. These increases resulted from higher truck
volumes, improved margins and production efficiencies at most
truck plants. Higher Truck segment sales and profitability are
primarily attributable to operations in the United States.
Third quarter results were impacted by the effects of the
traditional summer holiday closures of the Company's truck
plants in Europe. Third quarter 1999 results were also affected
by costs recognized to consolidate U.K. truck manufacturing
operations at Leyland Trucks Ltd., which was acquired last year.
PACCAR's other product areas, Winch and Auto Parts, are included
in the caption "All other" as presented in Note D of the
accompanying consolidated financial statements. Due to weaker
demand in some key markets, Winch sales and profits for the
quarter and first nine months were lower compared to the prior
year. As previously announced, the Company completed the sale of
its retail auto parts business for $143.2 million to CSK Auto,
Inc. on October 1, 1999. The transaction resulted in a $17.5
million after-tax gain that will be reflected in fourth quarter
results.
In the Financial Services segment, consolidated net loan and
lease portfolios increased by $638 million, or 18% during the
first nine months to nearly $4.2 billion at the end of September
1999. The larger portfolio generated revenue increases of 17%
and 16% for the quarter and first nine months of 1999,
respectively. This was partially offset by increased loan loss
provisions, reflecting the larger portfolio as well as slightly
higher credit losses. In addition, margin rates on finance
receivables have decreased as the lending market for financing
new truck purchases remains highly competitive. Segment pretax
income increased 12% in the third quarter and 10% for the first
nine months of 1999 compared to 1998.
-10-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
LIQUIDITY AND CAPITAL RESOURCES:
PACCAR's ratio of Truck and Other current assets to current
liabilities at September 30, 1999, moved to 1.37 from 1.36 at
December 31, 1998.
The increase in 1999 net cash provided by operating activities
resulted from a combination of higher net income and changes in
components of working capital. In the first nine months of 1999,
PACCAR used cash from operating activities to pay the special
year-end and regular quarterly cash dividends, to make net
capital and other asset additions, to fund financial services
lending activities in excess of outside borrowings and to
purchase additional marketable securities.
Capital additions in 1999 included expenditures of $85 million
for the Company's truck plant at Ste. Therese Canada, which
opened in September. External borrowings funded the plant
construction. Higher capital spending in 1999 also reflects
continued investments in new product and systems development.
In 1998, PACCAR's largest financial services subsidiary, PACCAR
Financial Corp. (PFC) registered $1 billion of senior debt
securities under the Securities Act of 1933 for offering to the
public. At the end of September 1999, $195 million of such
securities remained available for issuance. PFC intends to file
a registration statement for additional debt securities in the
near future.
As previously discussed, PACCAR's sale of its retail auto parts
business will result in net cash proceeds of approximately $120
million ($143.2 million less tax and other related cash
payments) in the fourth quarter of 1999.
Other information on liquidity and sources of capital as
presented in the 1998 Annual Report to Stockholders continues to
be relevant.
-11-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
YEAR 2000 ISSUE:
GENERAL
The Company established a formal Year 2000 project in 1996 to
manage PACCAR's global compliance effort. The scope of the
project includes the compliance of (1) mainframe computer
systems, (2) PC and LAN systems, (3) embedded systems (including
both the Company's internal machinery and equipment and the
Company's products), and (4) significant third parties. A
steering committee comprised of senior management monitors
progress and addresses compliance issues. Management of the
Company believes it has an effective program in place to resolve
the Year 2000 issue in a timely manner.
STATUS OF THE COMPANY'S YEAR 2000 COMPLIANCE
The Company has completed the evaluation of all computer systems
and applications used by the Company and its subsidiaries.
Outside specialists were retained to assist in this process to
the extent considered necessary. Compliance efforts on mainframe
computer systems, PC and LAN systems, and embedded manufacturing
systems are complete. The Company has verified that there are no
Year 2000 issues with the portion of its products manufactured
by the Company, and it has received confirmation from most major
suppliers that there are no Year 2000 issues with their
components as used in the Company's products. The Company will
continue to contact the remaining suppliers about compliance of
their components and will make contingency plans where
necessary. Year 2000 compliance work is being successfully
completed along with other systems development projects.
SIGNIFICANT THIRD PARTIES
Some of the Company's Year 2000 compliance efforts were
dependent on the release of new versions of software by the
software developers. All upgrades have been received and
installed.
PACCAR has contacted all business-critical suppliers to assess
their Year 2000 efforts. The Company has received assurances
from most suppliers and has taken actions with respect to other
suppliers to ensure that business with PACCAR will continue
without Year 2000 impacts. Monitoring and testing will continue
through the remainder of 1999. Contingency plans have been made
where necessary. PACCAR has also assessed the Year 2000 programs
of all independent dealers. All dealers are aware of the Year
2000 actions they must take, and the Company continues to track
their progress toward completion.
The Company also depends on banks and other financial
institutions to support its cash management activities and to
fund the lending activity of its financial services companies
with the issuance of commercial paper and public debt. The
Company has sent letters and has received responses indicating
that banks and other financial institutions, with which it has
relationships, already are or will be compliant by the Year
2000.
-12-
<PAGE>
To date, the Company is not aware of any significant third
party, including software developers, suppliers, dealers, banks
and others, with a Year 2000 issue that would materially impact
the Company's results of operations, liquidity or capital
resources.
YEAR 2000 COSTS
The total cost to complete these projects is expected to
approximate $26 million, of which $24 million has been incurred
through September 30, 1999. The remaining costs cover completion
of final testing to verify compliance of dealers and suppliers
and a contingency plan. The Company has and expects to continue
to fund the cost of these projects from operations. All project
costs are being expensed as incurred.
YEAR 2000 RISKS
The Company has completed all modification phases of its Year
2000 program. PACCAR is conducting integrated tests of all
systems and is using independent verification of critical
systems to provide increased assurance that all Year 2000
problems have been resolved. However, the Company has no means
of ensuring that significant third parties will be fully
prepared for the Year 2000. In the event the Company or one or
more significant third parties fail to become completely Year
2000 compliant, the most reasonably likely worst-case scenario
for the Company is that manufacturing operations could be
temporarily impacted. Production at one or more of the Company's
plants could be interrupted for a period of time, which in turn
could result in lost sales and profits. Selling, general and
administrative expense for the Company would likely increase to
the extent that automated functions would need to be performed
manually.
The most reasonably likely worst-case scenario for the Company's
financial services companies, if some of their systems are not
Year 2000 compliant, is that information and reports would
contain inaccuracies that would reduce the efficiency of payment
processing and would result in increased administrative costs
and generally reduce customer service. If a significant failure
of banking systems or systems of other entities that are key to
the public debt markets occurred due to Year 2000 issues, the
financial services companies' ability to access various credit
and money markets and to process payments could be adversely
affected.
The cumulative effect of these potential outcomes is unknown,
but could have a material effect on the Company's consolidated
financial condition, results of operations and liquidity.
-13-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
CONTINGENCY PLANS
While every effort has been made to avoid Year 2000 system
problems, PACCAR is preparing Year 2000 business contingency
plans for all operations. These plans include automated or
manual steps as necessary to continue business as usual and
special staff scheduling for December 1999 and January 2000.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the Company's market risk
during the nine months ended September 30, 1999. For additional
information, refer to Item 7a as presented in the 1998 Annual
Report to Stockholders.
-14-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
PART II--OTHER INFORMATION
For Items 1, 2, 3, and 5, there was no reportable information for any of the
three months ended September 30, 1999.
Reportable information in response to Item 4 was previously reported in the
Quarterly Report on Form 10-Q for the quarter ended March 31, 1999.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. Any exhibits filed herewith are listed in the
accompanying index to exhibits.
(b) No reports on Form 8-K have been filed for the quarter ended
September 30, 1999.
-15-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
SIGNATURE
Pursuant to the requirements 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)
Date November 4, 1999 By /s/ G. D. Hatchel
------------------------ -------------------------------------
G. D. Hatchel
Vice President and Controller
(Authorized Officer and
Chief Accounting Officer)
-16-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
INDEX TO EXHIBITS
EXHIBIT (IN ORDER OF ASSIGNED INDEX NUMBERS)
3 Articles of incorporation and bylaws:
(a) PACCAR Inc Certificate of Incorporation, as amended to April 29,
1997 (incorporated by reference to the Quarterly Report on Form
10-Q for the quarter ended March 31, 1997).
(b) PACCAR Inc Bylaws, as amended to April 26, 1994 (incorporated by
reference to the Quarterly Report on Form 10-Q for the quarter
ended March 31, 1994).
4 Instruments defining the rights of security holders, including
indentures:
(a) Rights agreement dated as of December 10, 1998 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 4.1 of the
Current Report on Form 8-K of PACCAR Inc dated December 21, 1998).
(b) Indenture for Senior Debt Securities dated as of December 1, 1983,
and first Supplemental Indenture dated as of June 19, 1989,
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. dated March 26, 1984, File
Number 0-12553 and Exhibit 4.2 to PACCAR Financial Corp.'s
registration statement on Form S-3 dated June 23, 1989,
Registration No. 33-29434).
(c) 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).
(d) Forms of Medium-Term Note, Series H (incorporated by reference to
Exhibits 4.3A and 4.3B to PACCAR Financial Corp.'s Registration
Statement on Form S-3, dated March 11, 1996, Registration Number
333-01623).
Form of Letter of Representation among PACCAR Financial Corp.,
Citibank, N.A. and the Depository Trust Company, Series H
(incorporated by reference to Exhibit 4.4 to PACCAR Financial
Corp.'s Registration Statement on Form S-3 dated March 11, 1996,
Registration Number 333-01623).
-17-
<PAGE>
FORM 10-Q
PACCAR Inc AND SUBSIDIARIES
INDEX TO EXHIBITS
EXHIBIT (IN ORDER OF ASSIGNED INDEX NUMBERS)
(e) Forms of Medium-Term Note, Series I (incorporated by reference to
Exhibits 4.3A and 4.3B to PACCAR Financial Corp.'s Registration
Statement on Form S-3 dated September 10, 1998, Registration
Number 333-63153).
Form of Letter of Representation among PACCAR Financial Corp.,
Citibank, N.A. and the Depository Trust Company, Series I
(incorporated by reference to Exhibit 4.5 to PACCAR Financial
Corp.'s Registration Statement on Form S-3 dated September 10,
1998, Registration Number 333-63153).
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 C of the 1997 Proxy Statement, dated March
20, 1997).
(g) Amended and Restated Deferred Incentive Compensation Plan
(incorporated by reference to Exhibit (10)(g) of the Annual Report
on Form 10-K for the year ended December 31, 1993).
(h) PACCAR Inc Senior Executive Incentive Plan (incorporated by
reference to Exhibit D of the 1997 Proxy Statement, dated March
20, 1997).
27 Financial Data Schedule
(a) For the nine months ended September 30, 1999
The following restated schedule is submitted for certain
reclassifications as reflected in the Consolidated Statements of
Income for the three and nine months ended September 30, 1999.
(b) For the nine months ended September 30, 1998 - restated.
-18-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
AND 1998, AND THE CONSOLIDATED BALANCE SHEETS, SEPTEMBER 30, 1999, AND DECEMBER
31, 1998, OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 494,300
<SECURITIES> 469,500
<RECEIVABLES> 4,822,100
<ALLOWANCES> 0
<INVENTORY> 471,100
<CURRENT-ASSETS> 0
<PP&E> 876,200
<DEPRECIATION> 0
<TOTAL-ASSETS> 7,654,900
<CURRENT-LIABILITIES> 0
<BONDS> 1,585,600
0
0
<COMMON> 78,300
<OTHER-SE> 2,025,400
<TOTAL-LIABILITY-AND-EQUITY> 7,654,900
<SALES> 6,424,600
<TOTAL-REVENUES> 6,693,700
<CGS> 5,422,100
<TOTAL-COSTS> 5,576,300
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 13,500
<INTEREST-EXPENSE> 10,100
<INCOME-PRETAX> 634,400
<INCOME-TAX> 230,700
<INCOME-CONTINUING> 403,700
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 403,700
<EPS-BASIC> 5.16
<EPS-DILUTED> 5.12
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF INCOME FOR THE NINE MONTHS ENDED SEPTMEBER 30, 1998
AND 1997, AND THE CONSOLDIATED BALANCE SHEETS, SEPTEMBER 30, 1998, AND DECEMBER
31, 1997, OF PACCAR INC AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 376,300
<SECURITIES> 416,300
<RECEIVABLES> 3,941,100
<ALLOWANCES> 0
<INVENTORY> 514,800
<CURRENT-ASSETS> 0
<PP&E> 777,600
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,392,300
<CURRENT-LIABILITIES> 0
<BONDS> 1,261,300
0
0
<COMMON> 78,100
<OTHER-SE> 1,706,400
<TOTAL-LIABILITY-AND-EQUITY> 6,392,300
<SALES> 5,459,000
<TOTAL-REVENUES> 5,690,900
<CGS> 4,639,000
<TOTAL-COSTS> 4,766,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 9,500
<INTEREST-EXPENSE> 9,600
<INCOME-PRETAX> 473,200
<INCOME-TAX> 171,300
<INCOME-CONTINUING> 301,900
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 301,900
<EPS-BASIC> 3.87
<EPS-DILUTED> 3.84
</TABLE>
