UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended
OR
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.
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of |
(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
(Zip Code) |
(
(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 |
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.
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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
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.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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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
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 —
PACCAR Inc – Form 10-Q
INDEX
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Page |
PART I. |
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ITEM 1. |
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Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) |
3 |
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4 |
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6 |
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Consolidated Statements of Stockholders’ Equity – Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) |
7 |
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8 |
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ITEM 2. |
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
34 |
ITEM 3. |
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52 |
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ITEM 4. |
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52 |
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PART II. |
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ITEM 1. |
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53 |
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ITEM 1A. |
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ITEM 2. |
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UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES |
53 |
ITEM 3. |
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ITEM 4. |
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ITEM 5. |
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ITEM 6. |
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- 2 -
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Consolidated Statements of Comprehensive Income (Unaudited)
(Millions, Except Per Share Amounts)
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Three Months Ended |
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Nine Months Ended |
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September 30 |
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September 30 |
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2024 |
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2023 |
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2024 |
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2023 |
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TRUCK, PARTS AND OTHER: |
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Net sales and revenues |
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Cost of sales and revenues |
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Research and development |
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Selling, general and administrative |
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Interest and other (income) expenses, net |
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Truck, Parts and Other Income Before Income Taxes |
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FINANCIAL SERVICES: |
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Interest and fees |
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Operating lease, rental and other revenues |
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Revenues |
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Interest and other borrowing expenses |
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Depreciation and other expenses |
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Selling, general and administrative |
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Provision for losses on receivables |
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Financial Services Income Before Income Taxes |
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Investment income |
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Total Income Before Income Taxes |
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Income taxes |
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Net Income |
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$ |
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$ |
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$ |
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$ |
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Net Income Per Share |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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Weighted Average Number of Common Shares Outstanding |
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Basic |
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Diluted |
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Comprehensive Income |
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$ |
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$ |
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$ |
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$ |
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See Notes to Consolidated Financial Statements.
- 3 -
Consolidated Balance Sheets
(Millions)
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September 30 |
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December 31 |
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2024 |
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2023 * |
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(Unaudited) |
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ASSETS |
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TRUCK, PARTS AND OTHER: |
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Current Assets |
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Cash and cash equivalents |
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$ |
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$ |
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Trade and other receivables, net (allowance for losses: 2024 - $ |
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Marketable securities |
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Inventories, net |
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Other current assets |
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Total Truck, Parts and Other Current Assets |
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Equipment on operating leases, net |
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Property, plant and equipment, net |
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Other noncurrent assets, net |
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Total Truck, Parts and Other Assets |
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FINANCIAL SERVICES: |
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Cash and cash equivalents |
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Finance and other receivables, net (allowance for losses: 2024 - $ |
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Equipment on operating leases, net |
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Other assets |
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Total Financial Services Assets |
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$ |
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$ |
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* The December 31, 2023 consolidated balance sheet has been derived from audited financial statements.
See Notes to Consolidated Financial Statements.
- 4 -
Consolidated Balance Sheets
(Millions)
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September 30 |
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December 31 |
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2024 |
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2023 * |
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(Unaudited) |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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TRUCK, PARTS AND OTHER: |
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Current Liabilities |
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Accounts payable, accrued expenses and other |
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$ |
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$ |
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Dividend payable |
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Total Truck, Parts and Other Current Liabilities |
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Residual value guarantees and deferred revenues |
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Other liabilities |
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Total Truck, Parts and Other Liabilities |
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FINANCIAL SERVICES: |
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Accounts payable, accrued expenses and other |
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Commercial paper and bank loans |
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Term notes |
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Deferred taxes and other liabilities |
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Total Financial Services Liabilities |
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STOCKHOLDERS' EQUITY: |
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Preferred stock, |
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Common stock, $ |
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Additional paid-in capital |
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Treasury stock, at cost - |
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Retained earnings |
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Accumulated other comprehensive loss |
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( |
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( |
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Total Stockholders' Equity |
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$ |
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$ |
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* The December 31, 2023 consolidated balance sheet has been derived from audited financial statements.
See Notes to Consolidated Financial Statements.
- 5 -
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Millions)
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Nine Months Ended |
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September 30 |
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2024 |
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2023 |
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OPERATING ACTIVITIES: |
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Net Income |
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$ |
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$ |
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Adjustments to reconcile net income to cash provided by operations: |
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Depreciation and amortization: |
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Property, plant and equipment |
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Equipment on operating leases and other |
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Provision for losses on financial services receivables |
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Other, net |
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( |
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( |
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Pension contributions |
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( |
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( |
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Change in operating assets and liabilities: |
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Trade and other receivables |
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( |
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Wholesale receivables on new trucks |
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( |
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( |
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Inventories |
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( |
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( |
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Accounts payable and accrued expenses |
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Income taxes, warranty and other |
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( |
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Net Cash Provided by Operating Activities |
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INVESTING ACTIVITIES: |
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Originations of retail loans and finance leases |
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( |
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( |
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Collections on retail loans and finance leases |
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Net increase in wholesale receivables on used equipment |
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( |
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( |
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Purchases of marketable debt securities |
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( |
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( |
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Proceeds from sales and maturities of marketable debt securities |
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Payments for property, plant and equipment |
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( |
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Acquisitions of equipment for operating leases |
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( |
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( |
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Proceeds from asset disposals |
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Other, net |
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( |
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Net Cash Used in Investing Activities |
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( |
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( |
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FINANCING ACTIVITIES: |
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Payments of cash dividends |
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Purchases of treasury stock |
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Proceeds from stock compensation transactions |
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Net increase in commercial paper, short-term bank loans and other |
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Proceeds from term debt |
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Payments on term debt |
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( |
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Net Cash (Used in) Provided by Financing Activities |
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Effect of exchange rate changes on cash and cash equivalents |
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( |
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Net (Decrease) Increase in Cash and Cash Equivalents |
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Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
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$ |
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$ |
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See Notes to Consolidated Financial Statements.
- 6 -
Consolidated Statements of Stockholders’ Equity (Unaudited)
(Millions, Except Per Share Amounts)
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Three Months Ended |
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Nine Months Ended |
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September 30 |
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September 30 |
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2024 |
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2023 |
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2024 |
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2023 |
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COMMON STOCK, $1 PAR VALUE: |
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Balance at beginning of period |
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$ |
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$ |
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$ |
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$ |
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Stock compensation |
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Balance at end of period |
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ADDITIONAL PAID-IN CAPITAL: |
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Balance at beginning of period |
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Stock compensation |
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Balance at end of period |
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TREASURY STOCK, AT COST: |
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Balance at beginning of period |
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( |
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Purchases |
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( |
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( |
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( |
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( |
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Balance at end of period |
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( |
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( |
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( |
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( |
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RETAINED EARNINGS: |
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Balance at beginning of period |
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Net income |
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Cash dividends declared on common stock |
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( |
) |
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( |
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( |
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( |
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Balance at end of period |
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ACCUMULATED OTHER COMPREHENSIVE LOSS: |
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Balance at beginning of period |
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( |
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( |
) |
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( |
) |
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( |
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Other comprehensive income (loss) |
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( |
) |
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( |
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Balance at end of period |
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( |
) |
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( |
) |
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( |
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( |
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Total Stockholders’ Equity |
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$ |
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$ |
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$ |
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$ |
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Cash dividends declared on common stock, per share |
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$ |
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$ |
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$ |
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$ |
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See Notes to Consolidated Financial Statements.
- 7 -
Notes to Consolidated Financial Statements (Unaudited) |
(Millions, Except Share Amounts) |
NOTE A - Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and 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 GAAP 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 months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, refer to the consolidated financial statements and footnotes included in PACCAR Inc’s (PACCAR or the Company) Annual Report on Form 10‑K for the year ended December 31, 2023.
Equity Method Investment: The Company uses the equity method to account for the investment in an advanced battery cell manufacturing joint venture. Under the equity method, the original investments in the joint venture are recorded at cost and subsequently adjusted by the Company’s share of equity income or losses after the date of acquisition. The investment is included in Truck, Parts and Other "Other noncurrent assets, net" on the Company’s Consolidated Balance Sheets as of September 30, 2024.
Earnings per Share: Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding, plus the effect of any participating securities. Diluted earnings per common share are computed assuming that all potentially dilutive securities are converted into common shares under the treasury stock method.
The dilutive and antidilutive options are shown separately in the table below:
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Three Months Ended |
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Nine Months Ended |
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September 30 |
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September 30 |
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2024 |
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2023 |
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2024 |
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2023 |
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Additional shares |
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