Borrowings And Credit Arrangements

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Borrowings And Credit Arrangements

J. BORROWINGS AND CREDIT ARRANGEMENTS

Financial Services borrowings include the following:

	2021					2020
	EFFECTIVE					EFFECTIVE
At December 31,	RATE			BORROWINGS		RATE			BORROWINGS
Commercial paper		.2	%	$	3,025.1		.4	%	$	3,113.5
Bank loans		4.1	%		277.9		5.9	%		230.9
					3,303.0					3,344.4
Term notes		1.5	%		7,128.8		1.7	%		7,508.9
		1.2	%	$	10,431.8		1.4	%	$	10,853.3

Commercial paper and term notes borrowings were $10,153.9 and $10,622.4 at December 31, 2021 and 2020, respectively. Unamortized debt issuance costs, unamortized discounts and the net effect of fair value hedges were $(21.6) and $(12.7) at December 31, 2021 and 2020, respectively. The effective rate is the weighted average rate as of December 31, 2021 and 2020 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
2022	$	3,025.2	$	77.7	$	2,200.0	$	5,302.9
2023				18.5		2,200.0		2,218.5
2024				147.7		1,709.2		1,856.9
2025				34.0		400.0		434.0
2026						641.1		641.1
	$	3,025.2	$	277.9	$	7,150.3	$	10,453.4

Interest paid on borrowings was $104.8, $164.5 and $203.8 in 2021, 2020 and 2019, 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. The medium-term notes are issued by PACCAR Financial Corp. (PFC), PACCAR Financial Europe (PFE), PACCAR Financial Mexico (PFM), PACCAR Financial Pty. Ltd. (PFPL) and PACCAR Financial Ltd. (PFL Canada).

In November 2021, 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, 2021 was $5,500.0. In February 2022, PFC issued $300.0 of medium-term notes under this registration. The registration expires in November 2024 and does not limit the principal amount of debt securities that may be issued during that period.

As of December 31, 2021, the Company’s European finance subsidiary, PFE, had €1,600.0 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 2022.

In August 2021, PFM registered a 10,000.0 Mexican pesos medium-term note and commercial paper program with the Comision Nacional Bancaria y de Valores. 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, 2021, 9,540.1 Mexican pesos were available for issuance.  

In August 2018, the Company’s Australian subsidiary, PFPL, 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 as of December 31, 2021 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. The total amount of medium-term notes outstanding for PFL Canada as of December 31, 2021 was 150.0 Canadian dollars.

The Company has line of credit arrangements of $3,597.0, of which $3,319.1 were unused at December 31, 2021. Included in these arrangements are $3,000.0 of committed bank facilities, of which $1,000.0 expires in June 2022, $1,000.0 expires in June 2024 and $1,000.0 expires in June 2026. The Company intends to replace these credit facilities on or before expiration with 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, 2021.