PACCAR INC [PCAR] Filings

10-Q 1 pcar-10q_20220331.htm 10-Q pcar-10q_20220331.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

☐	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. 001-14817

PACCAR Inc

(Exact name of registrant as specified in its charter)

Delaware	91-0351110
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

777 - 106th Ave. N.E., Bellevue, WA	98004
(Address of principal executive offices)	(Zip Code)

(425) 468-7400

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, $1 par value	PCAR	The Nasdaq Stock Market

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 the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ 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 — 347,683,222 shares as of April 28, 2022

PACCAR Inc – Form 10-Q

INDEX

		Page
PART I.	FINANCIAL INFORMATION:

ITEM 1.	FINANCIAL STATEMENTS:
	Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2022 and 2021 (Unaudited)	3
	Consolidated Balance Sheets – March 31, 2022 and December 31, 2021 (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2022 and 2021 (Unaudited)	6
	Consolidated Statements of Stockholders’ Equity – Three Months Ended March 31, 2022 and 2021 (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	8
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	31
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	42
ITEM 4.	CONTROLS AND PROCEDURES	42

PART II.	OTHER INFORMATION:

ITEM 1.	LEGAL PROCEEDINGS	43
ITEM 1A.	RISK FACTORS	43
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	43
ITEM 6.	EXHIBITS	43

INDEX TO EXHIBITS		43

SIGNATURE		46

- 2 -

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Consolidated Statements of Comprehensive Income (Unaudited)

(Millions, Except Per Share Amounts)

	Three Months Ended
	March 31
	2022			2021
TRUCK, PARTS AND OTHER:
Net sales and revenues	$	6,106.4		$	5,413.5

Cost of sales and revenues		5,285.5			4,689.7
Research and development		78.0			80.1
Selling, general and administrative		148.0			129.9
Interest and other (income), net		(32.0	)		(13.2	)
		5,479.5			4,886.5
Truck, Parts and Other Income Before Income Taxes		626.9			527.0

FINANCIAL SERVICES:
Interest and fees		132.3			129.9
Operating lease, rental and other revenues		233.9			302.1
Revenues		366.2			432.0

Interest and other borrowing expenses		39.8			42.0
Depreciation and other expenses		143.5			278.7
Selling, general and administrative		35.7			31.2
Provision for losses on receivables		.2			3.7
		219.2			355.6
Financial Services Income Before Income Taxes		147.0			76.4
Investment (loss) income		(2.5	)		4.9
Total Income Before Income Taxes		771.4			608.3
Income taxes		170.9			137.5
Net Income	$	600.5		$	470.8

Net Income Per Share
Basic	$	1.72		$	1.35
Diluted	$	1.72		$	1.35

Weighted Average Number of Common Shares Outstanding
Basic		348.3			347.6
Diluted		348.8			348.4

Comprehensive Income	$	643.9		$	404.7

See Notes to Consolidated Financial Statements.

- 3 -

Consolidated Balance Sheets (Millions) (Unaudited)

	March 31		December 31
	2022		2021
ASSETS

TRUCK, PARTS AND OTHER:
Current Assets
Cash and cash equivalents	$	3,157.2	$	3,253.6
Trade and other receivables, net (allowance for losses: 2022 - $.6, 2021 - $.6)		1,927.8		1,575.1
Marketable securities		1,515.2		1,559.4
Inventories, net		2,222.1		1,976.0
Other current assets		720.5		732.9
Total Truck, Parts and Other Current Assets		9,542.8		9,097.0

Equipment on operating leases, net		285.5		302.4
Property, plant and equipment, net		3,420.0		3,398.1
Other noncurrent assets, net		1,340.7		1,293.0
Total Truck, Parts and Other Assets		14,589.0		14,090.5

FINANCIAL SERVICES:
Cash and cash equivalents		157.7		174.7
Finance and other receivables, net (allowance for losses: 2022 - $118.3, 2021 - $116.9)		12,563.9		11,920.8
Equipment on operating leases, net		2,811.3		2,886.5
Other assets		464.2		436.9
Total Financial Services Assets		15,997.1		15,418.9
	$	30,586.1	$	29,509.4

See Notes to Consolidated Financial Statements.

- 4 -

Consolidated Balance Sheets (Millions) (Unaudited)

	March 31			December 31
	2022			2021
LIABILITIES AND STOCKHOLDERS' EQUITY

TRUCK, PARTS AND OTHER:
Current Liabilities
Accounts payable, accrued expenses and other	$	4,609.6		$	3,930.9
Dividend payable					521.1
Total Truck, Parts and Other Current Liabilities		4,609.6			4,452.0
Residual value guarantees and deferred revenues		309.3			329.1
Other liabilities		1,407.0			1,487.6
Total Truck, Parts and Other Liabilities		6,325.9			6,268.7

FINANCIAL SERVICES:
Accounts payable, accrued expenses and other		636.7			624.5
Commercial paper and bank loans		3,762.6			3,303.0
Term notes		7,097.4			7,128.8
Deferred taxes and other liabilities		620.2			590.4
Total Financial Services Liabilities		12,116.9			11,646.7

STOCKHOLDERS' EQUITY:
Preferred stock, no par value - authorized 1.0 million shares, none issued
Common stock, $1 par value - authorized 1.2 billion shares, issued 347.7 and 347.3 million shares		347.7			347.3
Additional paid-in capital		167.3			142.0
Treasury stock, at cost - .02 million and nil shares		(1.9	)
Retained earnings		12,507.9			12,025.8
Accumulated other comprehensive loss		(877.7	)		(921.1	)
Total Stockholders' Equity		12,143.3			11,594.0
	$	30,586.1		$	29,509.4

See Notes to Consolidated Financial Statements.

- 5 -

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Millions)

	Three Months Ended
	March 31
	2022			2021
OPERATING ACTIVITIES:
Net Income	$	600.5		$	470.8
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization:
Property, plant and equipment		74.0			66.9
Equipment on operating leases and other		111.7			184.8
Provision for losses on financial services receivables		.2			3.7
Other, net		(140.7	)		(47.1	)
Pension contributions		(6.7	)		(6.2	)
Change in operating assets and liabilities:
Trade and other receivables		(381.0	)		(468.2	)
Wholesale receivables on new trucks		(327.4	)		26.8
Inventories		(230.9	)		(270.9	)
Accounts payable and accrued expenses		550.3			655.8
Income taxes, warranty and other		209.3			(79.5	)
Net Cash Provided by Operating Activities		459.3			536.9

INVESTING ACTIVITIES:
Originations of retail loans and finance leases		(1,221.0	)		(1,036.2	)
Collections on retail loans and finance leases		974.1			937.5
Net (increase) decrease in wholesale receivables on used equipment		(1.6	)		17.4
Purchases of marketable debt securities		(207.7	)		(158.0	)
Proceeds from sales and maturities of marketable debt securities		203.9			153.2
Payments for property, plant and equipment		(138.4	)		(114.6	)
Acquisitions of equipment for operating leases		(230.2	)		(243.1	)
Proceeds from asset disposals		188.1			240.9
Other, net		26.7			(12.8	)
Net Cash Used in Investing Activities		(406.1	)		(215.7	)

FINANCING ACTIVITIES:
Payments of cash dividends		(639.4	)		(353.7	)
Purchases of treasury stock		(1.9	)		(1.4	)
Proceeds from stock compensation transactions		16.7			28.8
Net increase (decrease) in commercial paper, short-term bank loans and other		481.6			(383.5	)
Proceeds from term debt		631.7			892.5
Payments on term debt		(645.1	)		(691.0	)
Net Cash Used in Financing Activities		(156.4	)		(508.3	)
Effect of exchange rate changes on cash and cash equivalents		(10.2	)		(32.5	)
Net Decrease in Cash and Cash Equivalents		(113.4	)		(219.6	)
Cash and cash equivalents at beginning of period		3,428.3			3,539.6
Cash and cash equivalents at end of period	$	3,314.9		$	3,320.0

See Notes to Consolidated Financial Statements.

- 6 -

Consolidated Statements of Stockholders’ Equity (Unaudited)

(Millions, Except Per Share Amounts)

	Three Months Ended
	March 31
	2022			2021
COMMON STOCK, $1 PAR VALUE:
Balance at beginning of period	$	347.3		$	346.6
Stock compensation		.4			.6
Balance at end of period		347.7			347.2

ADDITIONAL PAID-IN CAPITAL:
Balance at beginning of period		142.0			88.5
Stock compensation		25.3			35.8
Balance at end of period		167.3			124.3

TREASURY STOCK, AT COST:
Balance at beginning of period
Purchases		(1.9	)		(1.4	)
Balance at end of period		(1.9	)		(1.4	)

RETAINED EARNINGS:
Balance at beginning of period		12,025.8			11,148.5
Net income		600.5			470.8
Cash dividends declared on common stock		(118.4	)		(111.3	)
Balance at end of period		12,507.9			11,508.0

ACCUMULATED OTHER COMPREHENSIVE LOSS:
Balance at beginning of period		(921.1	)		(1,050.3	)
Other comprehensive income (loss)		43.4			(66.1	)
Balance at end of period		(877.7	)		(1,116.4	)
Total Stockholders’ Equity	$	12,143.3		$

PACCAR INC [PCAR] Filings
10-Q	[2022-05-03]
10-K	[2022-02-23]
10-Q	[2021-11-01]
10-Q	[2021-08-02]
10-Q	[2021-05-03]
10-K	[2021-02-17]
10-Q	[2020-11-02]
10-Q	[2020-08-03]
10-Q	[2020-05-04]
10-K	[2020-02-19]
10-Q	[2019-10-30]
10-Q	[2019-08-02]
10-Q	[2019-05-02]
10-K	[2019-02-21]
10-Q	[2018-11-02]
10-Q	[2018-08-03]
10-Q	[2018-05-04]
10-K	[2018-02-21]
10-Q	[2017-11-03]
10-Q	[2017-08-04]
10-Q	[2017-05-04]
10-K	[2017-02-21]
10-Q	[2016-11-04]
10-Q	[2016-08-03]
10-Q	[2016-05-04]
10-K	[2016-02-16]
10-Q	[2015-11-05]
10-Q	[2015-08-06]
10-Q	[2015-05-06]
10-K	[2015-02-26]
10-Q	[2014-11-06]
10-Q	[2014-08-07]
10-Q	[2014-05-07]
10-K	[2014-02-27]
10-Q	[2013-11-07]
10-Q	[2013-08-07]
10-Q	[2013-05-08]
10-K	[2013-02-27]
10-Q	[2012-11-07]
10-Q	[2012-08-08]
10-Q	[2012-05-10]
10-K	[2012-02-29]