| Segment Information |
NOTE I - Segment Information PACCAR operates in three principal segments: Truck, Parts and Financial Services. The Company evaluates the performance of its Truck and Parts segments based on operating profits, which excludes investment income, other income and expense and income taxes. The Financial Services segment’s performance is evaluated based on income before income taxes. The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Truck and Parts The Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks and the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles, both of which are sold through the same network of independent dealers. These segments derive a large proportion of their revenues and operating profits from operations in North America and Europe. The Truck segment incurs substantial costs to design, manufacture and sell trucks to its customers. The sale of new trucks provides the Parts segment with the basis for parts sales that may continue over the life of the truck, but are generally concentrated in the first five years after truck delivery. To reflect the benefit the Parts segment receives from costs incurred by the Truck segment, certain expenses are allocated from the Truck segment to the Parts segment. The expenses allocated are based on a percentage of the average annual expenses for factory overhead, engineering, research and development and selling, general and administrative (SG&A) expenses for the preceding five years. The allocation is based on the ratio of the average parts direct margin dollars (net sales less material and labor costs) to the total truck and parts direct margin dollars for the previous five years. The Company believes such expenses have been allocated on a reasonable basis. Truck segment assets related to the indirect expense allocation are not allocated to the Parts segment. Other expenses (income) included in the Truck and Parts segments is primarily the effects of foreign currency translation. Financial Services The Financial Services segment derives its earnings primarily from financing or leasing of PACCAR products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe. In Europe, the marketing of used trucks, including those units sold by the Truck segment subject to a RVG, is performed by the Financial Services segment. When a customer returns the truck at the end of the RVG contract, the Company’s Truck segment records a reduction in a RVG liability and the Company’s Financial Services segment records a used truck asset and revenue from the subsequent sale. Certain gains and losses from the sale of these used trucks are shared with the Truck segment. Other Included in Other is sales, income and expenses not attributable to a reportable segment, as well as the Company's industrial winch manufacturing business through October 31, 2024. The primary items include non-service cost components of pension expense, certain corporate income and expense and a charge for civil litigation claims in Europe. Intercompany interest (expense) income on dealer wholesale financing and on cash advances with the financial services companies are also included.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
|
Truck |
|
|
Parts |
|
|
Other |
|
|
Truck, Parts and Other |
|
|
Financial Services |
|
|
Total |
|
Net sales and revenues |
$ |
5,340.9 |
|
|
$ |
1,739.1 |
|
|
$ |
(1.2 |
) |
|
$ |
7,078.8 |
|
|
$ |
547.7 |
|
|
$ |
7,626.5 |
|
Less intersegment |
|
(97.8 |
) |
|
|
(18.2 |
) |
|
|
|
|
|
(116.0 |
) |
|
|
|
|
|
(116.0 |
) |
External Customers |
$ |
5,243.1 |
|
|
$ |
1,720.9 |
|
|
$ |
(1.2 |
) |
|
$ |
6,962.8 |
|
|
$ |
547.7 |
|
|
$ |
7,510.5 |
|
Cost of sales and revenues |
|
4,787.8 |
|
|
|
1,204.7 |
|
|
|
2.9 |
|
|
|
5,995.4 |
|
|
|
|
|
|
5,995.4 |
|
Research and development |
|
81.9 |
|
|
|
31.0 |
|
|
|
|
|
|
112.9 |
|
|
|
|
|
|
112.9 |
|
Selling, general and administrative |
|
54.7 |
|
|
|
64.6 |
|
|
|
19.9 |
|
|
|
139.2 |
|
|
|
40.1 |
|
|
|
179.3 |
|
Interest and other borrowing expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
200.3 |
|
|
|
200.3 |
|
Depreciation and other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
154.9 |
|
|
|
154.9 |
|
Provision for losses on receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
29.2 |
|
|
|
29.2 |
|
Other segment expenses (income) |
|
9.9 |
|
|
|
4.1 |
|
|
|
(23.5 |
) |
|
|
(9.5 |
) |
|
|
|
|
|
(9.5 |
) |
|
$ |
308.8 |
|
|
$ |
416.5 |
|
|
$ |
(.5 |
) |
|
$ |
724.8 |
|
|
$ |
123.2 |
|
|
$ |
848.0 |
|
Investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
83.9 |
|
Income (loss) before income taxes |
$ |
308.8 |
|
|
$ |
416.5 |
|
|
$ |
(.5 |
) |
|
$ |
724.8 |
|
|
$ |
123.2 |
|
|
$ |
931.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
$ |
93.1 |
|
|
$ |
2.9 |
|
|
$ |
6.4 |
|
|
$ |
102.4 |
|
|
$ |
104.9 |
|
|
$ |
207.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenditures for long-lived assets |
$ |
213.4 |
|
|
$ |
3.1 |
|
|
$ |
5.3 |
|
|
$ |
221.8 |
|
|
$ |
166.1 |
|
|
$ |
387.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
|
Truck |
|
|
Parts |
|
|
Other |
|
|
Truck, Parts and Other |
|
|
Financial Services |
|
|
Total |
|
Net sales and revenues |
$ |
10,731.7 |
|
|
$ |
3,447.8 |
|
|
$ |
(3.2 |
) |
|
$ |
14,176.3 |
|
|
$ |
1,075.7 |
|
|
$ |
15,252.0 |
|
Less intersegment |
|
(262.8 |
) |
|
|
(37.0 |
) |
|
|
|
|
|
(299.8 |
) |
|
|
|
|
|
(299.8 |
) |
External Customers |
$ |
10,468.9 |
|
|
$ |
3,410.8 |
|
|
$ |
(3.2 |
) |
|
$ |
13,876.5 |
|
|
$ |
1,075.7 |
|
|
$ |
14,952.2 |
|
Cost of sales and revenues |
|
9,504.3 |
|
|
|
2,376.2 |
|
|
|
5.9 |
|
|
|
11,886.4 |
|
|
|
|
|
|
11,886.4 |
|
Research and development |
|
167.3 |
|
|
|
61.0 |
|
|
|
|
|
|
228.3 |
|
|
|
|
|
|
228.3 |
|
Selling, general and administrative |
|
112.0 |
|
|
|
125.5 |
|
|
|
45.0 |
|
|
|
282.5 |
|
|
|
78.4 |
|
|
|
360.9 |
|
Interest and other borrowing expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
390.9 |
|
|
|
390.9 |
|
Depreciation and other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
314.6 |
|
|
|
314.6 |
|
Provision for losses on receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
47.5 |
|
|
|
47.5 |
|
Other segment expenses* |
|
11.6 |
|
|
|
5.1 |
|
|
|
299.6 |
|
|
|
316.3 |
|
|
|
|
|
|
316.3 |
|
|
$ |
673.7 |
|
|
$ |
843.0 |
|
|
$ |
(353.7 |
) |
|
$ |
1,163.0 |
|
|
$ |
244.3 |
|
|
$ |
1,407.3 |
|
Investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
167.7 |
|
Income (loss) before income taxes |
$ |
673.7 |
|
|
$ |
843.0 |
|
|
$ |
(353.7 |
) |
|
$ |
1,163.0 |
|
|
$ |
244.3 |
|
|
$ |
1,575.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
$ |
184.0 |
|
|
$ |
7.2 |
|
|
$ |
12.5 |
|
|
$ |
203.7 |
|
|
$ |
208.7 |
|
|
$ |
412.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenditures for long-lived assets |
$ |
375.5 |
|
|
$ |
6.4 |
|
|
$ |
20.0 |
|
|
$ |
401.9 |
|
|
$ |
318.6 |
|
|
$ |
720.5 |
|
* In the first quarter of 2025, Other includes a $350.0 million charge related to civil litigation in Europe (EC-related claims) which is discussed in Note M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
|
Truck |
|
|
Parts |
|
|
Other |
|
|
Truck, Parts and Other |
|
|
Financial Services |
|
|
Total |
|
Net sales and revenues |
$ |
6,674.3 |
|
|
$ |
1,685.1 |
|
|
$ |
20.2 |
|
|
$ |
8,379.6 |
|
|
$ |
509.8 |
|
|
$ |
8,889.4 |
|
Less intersegment |
|
(96.5 |
) |
|
|
(20.8 |
) |
|
|
|
|
|
(117.3 |
) |
|
|
|
|
|
(117.3 |
) |
External Customers |
$ |
6,577.8 |
|
|
$ |
1,664.3 |
|
|
$ |
20.2 |
|
|
$ |
8,262.3 |
|
|
$ |
509.8 |
|
|
$ |
8,772.1 |
|
Cost of sales and revenues |
|
5,589.4 |
|
|
|
1,160.6 |
|
|
|
22.3 |
|
|
|
6,772.3 |
|
|
|
|
|
|
6,772.3 |
|
Research and development |
|
89.8 |
|
|
|
27.1 |
|
|
|
.2 |
|
|
|
117.1 |
|
|
|
|
|
|
117.1 |
|
Selling, general and administrative |
|
59.7 |
|
|
|
62.6 |
|
|
|
20.4 |
|
|
|
142.7 |
|
|
|
40.8 |
|
|
|
183.5 |
|
Interest and other borrowing expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
172.5 |
|
|
|
172.5 |
|
Depreciation and other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
173.6 |
|
|
|
173.6 |
|
Provision for losses on receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
11.7 |
|
|
|
11.7 |
|
Other segment expenses (income) |
|
1.6 |
|
|
|
.2 |
|
|
|
(25.4 |
) |
|
|
(23.6 |
) |
|
|
|
|
|
(23.6 |
) |
|
$ |
837.3 |
|
|
$ |
413.8 |
|
|
$ |
2.7 |
|
|
$ |
1,253.8 |
|
|
$ |
111.2 |
|
|
$ |
1,365.0 |
|
Investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95.8 |
|
Income before income taxes |
$ |
837.3 |
|
|
$ |
413.8 |
|
|
$ |
2.7 |
|
|
$ |
1,253.8 |
|
|
$ |
111.2 |
|
|
$ |
1,460.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
$ |
93.4 |
|
|
$ |
4.9 |
|
|
$ |
6.5 |
|
|
$ |
104.8 |
|
|
$ |
127.1 |
|
|
$ |
231.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenditures for long-lived assets |
$ |
201.6 |
|
|
$ |
16.5 |
|
|
$ |
12.4 |
|
|
$ |
230.5 |
|
|
$ |
281.7 |
|
|
$ |
512.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
|
Truck |
|
|
Parts |
|
|
Other |
|
|
Truck, Parts and Other |
|
|
Financial Services |
|
|
Total |
|
Net sales and revenues |
$ |
13,353.2 |
|
|
$ |
3,380.4 |
|
|
$ |
38.3 |
|
|
$ |
16,771.9 |
|
|
$ |
1,019.1 |
|
|
$ |
17,791.0 |
|
Less intersegment |
|
(234.4 |
) |
|
|
(40.2 |
) |
|
|
|
|
|
(274.6 |
) |
|
|
|
|
|
(274.6 |
) |
External Customers |
$ |
13,118.8 |
|
|
$ |
3,340.2 |
|
|
$ |
38.3 |
|
|
$ |
16,497.3 |
|
|
$ |
1,019.1 |
|
|
$ |
17,516.4 |
|
Cost of sales and revenues |
|
11,110.6 |
|
|
|
2,291.5 |
|
|
|
44.0 |
|
|
|
13,446.1 |
|
|
|
|
|
|
13,446.1 |
|
Research and development |
|
167.9 |
|
|
|
54.3 |
|
|
|
.4 |
|
|
|
222.6 |
|
|
|
|
|
|
222.6 |
|
Selling, general and administrative |
|
121.4 |
|
|
|
123.9 |
|
|
|
45.0 |
|
|
|
290.3 |
|
|
|
79.8 |
|
|
|
370.1 |
|
Interest and other borrowing expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
332.5 |
|
|
|
332.5 |
|
Depreciation and other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
353.9 |
|
|
|
353.9 |
|
Provision for losses on receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
27.8 |
|
|
|
27.8 |
|
Other segment expenses (income) |
|
|
|
|
.9 |
|
|
|
(51.5 |
) |
|
|
(50.6 |
) |
|
|
|
|
|
(50.6 |
) |
|
$ |
1,718.9 |
|
|
$ |
869.6 |
|
|
$ |
.4 |
|
|
$ |
2,588.9 |
|
|
$ |
225.1 |
|
|
$ |
2,814.0 |
|
Investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
181.3 |
|
Income before income taxes |
$ |
1,718.9 |
|
|
$ |
869.6 |
|
|
$ |
.4 |
|
|
$ |
2,588.9 |
|
|
$ |
225.1 |
|
|
$ |
2,995.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
$ |
193.0 |
|
|
$ |
8.7 |
|
|
$ |
12.5 |
|
|
$ |
214.2 |
|
|
$ |
252.7 |
|
|
$ |
466.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenditures for long-lived assets |
$ |
351.3 |
|
|
$ |
22.0 |
|
|
$ |
23.6 |
|
|
$ |
396.9 |
|
|
$ |
440.0 |
|
|
$ |
836.9 |
|
|
|
|
|
|
|
|
|
|
June 30 |
|
|
December 31 |
|
Business Segment Data |
2025 |
|
|
2024 |
|
Segment Assets: |
|
|
|
|
|
Truck |
$ |
8,413.4 |
|
|
$ |
7,563.3 |
|
Parts |
|
2,293.5 |
|
|
|
2,097.0 |
|
Other |
|
1,795.3 |
|
|
|
1,697.2 |
|
Cash and marketable securities |
|
8,279.7 |
|
|
|
9,649.9 |
|
|
|
20,781.9 |
|
|
|
21,007.4 |
|
Financial services |
|
23,312.9 |
|
|
|
22,411.5 |
|
|
$ |
44,094.8 |
|
|
$ |
43,418.9 |
|
|