Borrowings And Credit Arrangements

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Borrowings And Credit Arrangements

J.BORROWINGS AND CREDIT ARRANGEMENTS

Financial Services borrowings include the following:

	2024					2023
	EFFECTIVE					EFFECTIVE
At December 31,	RATE			BORROWINGS		RATE			BORROWINGS
Commercial paper		4.4	%	$	5,484.9		5.2	%	$	5,068.9
Bank loans		11.5	%		518.9		8.6	%		541.0
					6,003.8					5,609.9
Term notes		4.2	%		9,891.2		3.4	%		8,624.6
		4.5	%	$	15,895.0		4.3	%	$	14,234.5

Commercial paper and term notes borrowings were $15,376.1 and $13,693.5 at December 31, 2024 and 2023, respectively. Unamortized debt issuance costs, unamortized discounts and the net effect of fair value hedges were $(51.7) and $(54.1) at December 31, 2024 and 2023, respectively. The effective rate is the weighted-average rate as of December 31, 2024 and 2023 and includes the effects of interest-rate contracts.

The annual maturities of the Financial Services borrowings are as follows:

	COMMERCIAL		BANK		TERM
Beginning January 1,	PAPER		LOANS		NOTES		TOTAL
2025	$	5,497.1	$	239.1	$	2,623.4	$	8,359.6
2026				139.8		3,293.4		3,433.2
2027				92.5		2,064.0		2,156.5
2028				39.2		600.0		639.2
2029				8.3		999.9		1,008.2
2030 and beyond						350.0		350.0
	$	5,497.1	$	518.9	$	9,930.7	$	15,946.7

Interest paid on borrowings was $571.8, $396.5 and $169.1 in 2024, 2023 and 2022, respectively.

The primary sources of borrowings in the capital markets are commercial paper and medium-term notes issued in the public markets, and to a lesser extent, bank loans. Bank loans were primarily issued by Nacional Financiera (NAFIN), Scotiabank Mexico, HSBC Mexico and Banco Nacional de Desenvolvimento Economico e Social (BNDES). The medium-term notes are issued by PACCAR Financial Corp. (PFC), PACCAR Financial Europe (PFE), PACCAR Financial Mexico (PFM), PACCAR Financial Pty. Ltd. (PFPL Australia), PACCAR Financial Ltd. (PFL Canada) and Banco PACCAR S.A. (PFB).

In November 2024, the Company’s U.S. finance subsidiary, PFC, filed a shelf registration under the Securities Act of 1933. The total amount of medium-term notes outstanding for PFC as of December 31, 2024 was $7,250.0. The registration expires in November 2027 and does not limit the principal amount of debt securities that may be issued during that period.

As of December 31, 2024, the Company’s European finance subsidiary, PFE, had €597.9 available for issuance under a €2,500.0 medium-term note program listed on the Euro MTF Market of the Luxembourg Stock Exchange. This program renews annually and expires in July 2025.

In August 2021, PFM registered a 10,000.0 Mexican peso program with the Comision Nacional Bancaria y de Valores to issue medium-term notes and commercial paper. The registration expires in August 2026 and limits the amount of commercial paper (up to one year) to 5,000.0 Mexican pesos. At December 31, 2024, 5,570.0 Mexican pesos were available for issuance.

In August 2018, the Company's Australian subsidiary, PFPL Australia established a medium-term note program. The program does not limit the principal amount of debt securities that may be issued under the program. The total amount of medium-term notes outstanding for PFPL Australia as of December 31, 2024 was 700.0 Australian dollars.

In May 2021, the Company's Canadian subsidiary, PFL Canada established a medium-term note program. The program does not limit the principal amount of debt securities that may be issued under the program. There were no borrowings under this program as of December 31, 2024.

The Company’s Brazilian subsidiary, PFB, established a lending program in December 2021 with the local development bank, BNDES, for qualified customers to receive preferential conditions and generally market interest rates. This program is limited to 2,597.9 Brazilian reais and has 1,145.9 Brazilian reais outstanding as of December 31, 2024. The Brazilian subsidiary also established a Letra Financeira (LF) program in May 2024 and the program does not limit the principal amount of debt securities that may be issued under the program. A total of 500.0 Brazilian reais medium-term notes were outstanding as of December 31, 2024.

The Company has line of credit arrangements of $5,478.7, of which $4,956.5 were unused at December 31, 2024. Included in these arrangements are $4,000.0 of committed bank facilities, of which $1,500.0 expires in June 2025, $1,250.0 expires in June 2027 and $1,250.0 expires in June 2029. The Company intends to extend or replace these credit facilities on or before expiration to maintain facilities of similar amounts and duration. These credit facilities are maintained primarily to provide backup liquidity for commercial paper borrowings and maturing medium-term notes. There were no borrowings under the committed bank facilities for the year ended December 31, 2024.