PACCAR (PCAR) 10-K risk factor changes: FY2022 vs FY2021

Unexpected events, including natural disasters, extreme weather events, or [removed: global] pandemics, may increase the Company’s cost of doing business or disrupt the Company’s or its suppliers’ operations.

A decline in the Company’s truck unit sales [removed: and] [added: or] a decrease in used truck prices are also factors which may affect the Company’s Financial Services segment.

Although the financial assets of the Financial Services segment are secured by underlying equipment collateral, in the event a customer cannot meet its obligations to the Company, there is a risk [removed: that] the value of the underlying collateral will not be sufficient to recover the amounts owed to the Company, resulting in credit losses.

PFS uses derivative contracts to match the interest-rate characteristics of its debt to the [removed: interest rate] [added: interest-rate] characteristics of its finance receivables in order to mitigate the risk of changing interest rates.

[removed: Information Technology.] The Company relies on information technology systems and [removed: networks] [added: networks, some of which are managed by third parties,] to process, transmit and store electronic information, and to manage or support a variety of its business processes and activities.

These events could have an adverse impact on the Company’s results of operations and financial condition, damage its reputation, disrupt operations and negatively impact competitiveness in the [removed: marketplace.][added: marketplace]

The Company may be adversely affected by political instabilities, fuel shortages or interruptions in utility or transportation systems, natural calamities, [added: recessions or slower economic growth, inflation, epidemics and pandemics (such as COVID-19),] wars, terrorism and labor strikes.

[removed: Other] [added: These and other] unforeseen [removed: impacts of the COVID-19] pandemic [added: related factors] could [removed: also] impact the Company’s business and results of operations.

Substantially all of the Company’s [added: finance] contracts which [added: used to] reference [removed: LIBOR,] [added: LIBOR (London Inter-Bank Offered Rate),] including dealer wholesale financing contracts, retail loan and lease contracts, medium-term notes, hedging instruments and line of credit arrangements, [removed: include fall-back language that specifies the methods] [added: have been transitioned] to [removed: establish contract interest rates in the absence of LIBOR, or provide for the use of an] alternative benchmark [removed: rate should LIBOR be discontinued.][added: rates.]

Changes to [added: other] benchmark [removed: rates] [added: interest rates, such as CDOR (Canadian Dollar Offered Rate),] will have an uncertain impact on finance receivables and other financial obligations, the Company’s [removed: current or] future cost of funds and/or access to capital markets.

[removed: Accordingly, the] [added: The] Company does not expect the [added: cessation of LIBOR or the] anticipated changes to [removed: the use of LIBOR as a] [added: other] benchmark [removed: rate] [added: rates] will have a material impact on the results of operations.

Due to the international nature of the Company’s business, some products are also subject to international trade regulations, including customs and [removed: import / export] [added: import/export] related laws and regulations, government embargoes and sanctions prohibiting sales to specific persons or countries, as well as anti-corruption laws.

[added: Currency Exchange and Translation.] The Company’s consolidated financial results are reported in U.S. dollars, while significant operations are denominated in the currencies of other countries.

The Company has been affected by an industry-wide undersupply of component parts and anticipates the shortages may continue to affect deliveries into 2023.

The likelihood or severity of these unexpected events may increase due to the effects of climate change.

Transition Risks Related to Climate Change.

The Company has ongoing product development programs intended to address changing customer demand in the context of climate change and achieve its targeted reductions in emissions.

These involve the continuing development of compliant clean diesel powertrains and the design, manufacture, and sale of alternative powertrain commercial vehicles (e.g., battery-electric, hybrid, hydrogen fuel cell, and hydrogen combustion).

The pace of transition from diesel combustion to alternative powertrain commercial vehicles is highly uncertain and will be influenced by:

| • | the success of the Company’s research and development programs | |

| --- | --- | --- |

| • | customer demand for alternative powertrain vehicles | |

| --- | --- | --- |

| • | advancements in battery-electric, hydrogen fuel cell, and hydrogen combustion technology | |

| --- | --- | --- |

| • | the cost of batteries, hydrogen fuel cells and liquid hydrogen | |

| --- | --- | --- |

| • | global regulations requiring the use of alternative powertrain vehicles and/or providing incentives to facilitate the transition to alternative powertrain commercial vehicles | |

| --- | --- | --- |

| • | investments in energy and power infrastructure (e.g., renewable power supply, electric charging services, hydrogen supply and distribution) in key markets, as well as the associated utility costs | |

| --- | --- | --- |

| • | the ability of the supply chain to deliver components, including commodities and raw materials that are unique to alternative powertrain commercial vehicles | |

| --- | --- | --- |

| • | the success of new and existing competitors in developing and selling alternative powertrain commercial vehicles | |

| --- | --- | --- |

The Company believes its current strategies, programs and resources are sufficient to address changes in customer demand in the context of climate change and to meet its emissions reduction targets.

If the Company is not successful in addressing the risks noted above, there may be a material adverse impact on its business, operations, and financial condition.

Information Technology.

Some of the Company’s products include telematics which provide over-the-air software updates, advanced fleet management tools and real-time data analytics on driver and vehicle performance.

The Company has not experienced any notable security incidents that would have a material impact on the results of operations and financial condition of the Company.

Certain dealers and suppliers have reported they have experienced cyberattacks and those have not caused any material impact to the Company.

Conflict in Ukraine.

In accordance with international sanctions, in February 2022 the Company suspended truck and parts sales to Russia and Belarus.

The Company has no factories in Russia and has managed export sales to Russia through independent dealers.

In 2021, 2,500 trucks were sold into Russia and Belarus.

The Company also sold parts in these markets through a third-party owned warehouse.

The trucks were sold on a fully paid-up basis; accordingly, the Company does not have significant receivables exposure.

Inventory balances are not significant.

The conflict may affect energy supplies in Europe.

If the availability of energy in Europe is severely constrained, truck delivery volumes could be impacted.

The Company continues to monitor the situation closely.

The conflict has not had a significant impact on the results of operations or cash flows of the Company.

The potential future impact on the Company’s business will depend on further developments, including the severity and duration of the conflict and its effect on European and global economic conditions.

The automotive industry is currently experiencing a semiconductor supply shortage that is having wide-ranging effects across the automotive supply chain including some of the Company’s suppliers.

During 2021, the shortage has had an impact on the ability of the Company to deliver products to dealers and customers.

If the semiconductor supply shortage continues, the Company anticipates that production will be impacted in 2022.

The COVID-19 pandemic and various governmental responses to contain the outbreak continue to impact global economic activity and the Company’s business.

The economic disruptions from the pandemic are having an adverse effect on the Company’s revenues and operating results.

The Company’s workforce at a given location could be affected by a localized outbreak of COVID-19, necessitating facility slowdowns or shutdowns.

As a result of pandemic-related economic disruptions, if one or more of the Company’s suppliers could not produce needed parts or deliver at sufficient volumes to support the Company’s production plans or aftermarket requirements, revenues and operating results could be adversely affected.

The full extent and duration of the adverse effect on the Company’s business is uncertain and depends on the duration of the pandemic and the extent global and local economies are impacted by the effects of the pandemic.

Changes to consumer behavior and labor markets as a result of COVID-19, as well as other pandemic related economic factors such as business failures, lower housing and construction starts, lower automobile sales, disruptions in financial markets or disruptions to the global supply chain, in particular the undersupply of semiconductor chips, could have further adverse effects on the Company’s truck and parts revenues and operating results and may result in lower new truck financing volume, higher finance portfolio past dues, credit losses and used truck losses.

London Inter-Bank Offered Rate (LIBOR) Transition.

Certain financing provided by PFS to dealers and retail customers, as well as financing extended to PFS are based on variable interest rate contracts.

These contracts utilize various benchmark rates, including LIBOR, to establish applicable contract interest rates.

PACCAR also utilizes hedging instruments and has line of credit arrangements which reference LIBOR (including other similar benchmark rates).

On March 5, 2021, the U.K. Financial Conduct Authority formally announced dates that various LIBOR rates will either stop being published or will be deemed as not representative.

Certain tenors of U.S. LIBOR will be published through June 30, 2023, at which point they will have deemed to have lost representativeness.

Alternative benchmark rates are now being used for all new retail loan and lease contracts.

The Company has retail loan and lease contracts with a December 31, 2021 balance of approximately $47 million, or less than 1% of PFS assets, referencing LIBOR that extend beyond June 30, 2023 and do not contain fall-back language or provide for the use of an alternative benchmark rate.

The Company will seek to amend these contracts to allow for the use of an alternative benchmark rate.

Based on the current balance of finance contracts referencing LIBOR, it is estimated that for a 10 basis point difference between the current and replacement benchmark rates that the Company is unable to recover through pricing adjustments, income before income taxes would decrease by approximately $.7 million.

Currency Exchange and Translation.

The Company’s Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe, [removed: Australia,] [added: Australia] and South America.

[removed: 2021] [added: 2022] Financial Highlights

| • | Worldwide net sales and revenues were [removed: $23.52] [added: $28.82] billion in [removed: 2021] [added: 2022] compared to [removed: $18.73] [added: $23.52] billion in [removed: 2020,] [added: 2021,] primarily due to higher truck and parts revenues. |

| • | Truck sales were [removed: $16.80] [added: $21.49] billion in [removed: 2021] [added: 2022] compared to [removed: $13.16] [added: $16.80] billion in [removed: 2020,] [added: 2021,] primarily due to higher truck deliveries [added: and price realization] in all markets. |

| • | Parts sales were [removed: a record $4.94] [added: $5.76] billion in [removed: 2021] [added: 2022] compared to [removed: $3.91] [added: $4.94] billion in [removed: 2020] [added: 2021] reflecting higher demand [added: and price realization] in all markets. |

| • | Financial Services revenues were [removed: $1.69] [added: $1.51] billion in [removed: 2021] [added: 2022] compared to [removed: $1.57] [added: $1.69] billion in [removed: 2020,] [added: 2021,] primarily due to [removed: higher] [added: lower] used truck sales. |

| • | In [removed: 2021,] [added: 2022,] PACCAR earned net income for the [removed: 83rd] [added: 84th] consecutive year. Net income was [removed: $1.85] [added: $3.01] billion [removed: ($5.32] [added: ($5.75] per diluted share) in [removed: 2021] [added: 2022] compared to [removed: $1.30] [added: $1.87] billion [removed: ($3.74] [added: ($3.57] per diluted share) in [removed: 2020] [added: 2021] reflecting higher Truck, Parts and Financial Services [removed: revenues and] operating results. |

| • | Capital investments were [removed: $511.8] [added: $505.0] million in [removed: 2021] [added: 2022] compared to [removed: $569.5] [added: $511.8] million in [removed: 2020.] [added: 2021.] |

| • | After-tax return on beginning equity (ROE) was [removed: 17.8%] [added: 26.0%] in [removed: 2021] [added: 2022] compared to [removed: 13.4%] [added: 17.7%] in [removed: 2020.] [added: 2021.] |

| • | Research and development (R&D) expenses were [removed: $324.1] [added: $341.2] million in [removed: 2021] [added: 2022] compared to [removed: $273.9] [added: $324.1] million in [removed: 2020.] [added: 2021.] |

The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of [removed: $15.42] [added: $17.18] billion.

PFS issued [removed: $1.97] [added: $3.05] billion in medium-term notes during [removed: 2021] [added: 2022] to support new business volume and repay maturing debt.

Heavy-duty truck industry retail sales in the U.S. and Canada in [removed: 2022] [added: 2023] are expected to be [removed: 250,000] [added: 270,000] to [removed: 290,000] [added: 310,000] units compared to [removed: 250,000] [added: 283,500] in [removed: 2021.][added: 2022.]

In Europe, the [removed: 2022] [added: 2023] truck industry registrations for over 16-tonne vehicles are expected to be [removed: 260,000] [added: 270,000] to [removed: 300,000] [added: 310,000] units compared to [removed: 278,000] [added: 297,500] in [removed: 2021.][added: 2022.]

In South America, heavy-duty truck industry registrations in [removed: 2022] [added: 2023] are projected to be 125,000 to 135,000 compared to [removed: 127,000] [added: 138,300] in [removed: 2021.][added: 2022.]

The Company has been affected by an industry-wide undersupply of [removed: semiconductor chips] [added: component parts] and anticipates the shortage [removed: will] [added: may] continue to affect deliveries in [removed: 2022.][added: 2023.]

In [removed: 2022,] [added: 2023,] PACCAR Parts sales are expected to increase [removed: 6-9%] [added: 8-11%] compared to [removed: 2021] [added: 2022] levels reflecting strong freight demand.

In [removed: 2022,] [added: 2023,] average earning assets are expected to [removed: be similar] [added: increase 4-7% compared] to [removed: 2021.][added: 2022.]

Capital investments in [removed: 2022] [added: 2023] are expected to be [removed: $425] [added: $525] to [removed: $475] [added: $575] million, and R&D is expected to be [removed: $350] [added: $360] to [removed: $400] [added: $410] million.

The Company is increasing its investment in [added: next generation] clean diesel and [removed: zero emissions] [added: electric] powertrain technologies, autonomous [added: driving] systems, connected vehicle services, [removed: next-generation] [added: advanced] manufacturing and distribution capabilities.

The Company’s results of operations for the years ended December 31, [removed: 2021] [added: 2022] and [removed: 2020] [added: 2021] are presented below.

For information on the year ended December 31, [removed: 2019,] [added: 2020,] refer to Part II, Item 7 in the [removed: 2020] [added: 2021] Annual Report on Form 10-K.

| Year Ended December 31, | | | [removed: 2021] [added: 2022] | | | | [removed: 2020] [added: 2021] | |

| Truck | | $ | [removed: 16,799.7] [added: 21,486.2] | | | $ | [removed: 13,164.8] [added: 16,799.7] | |

| Parts | | | [removed: 4,944.3] [added: 5,764.3] | | | | [removed: 3,912.9] [added: 4,944.3] | |

| Other | | | [removed: 90.5] [added: 63.8] | | | | [removed: 76.6] [added: 90.5] | |

| Truck, Parts and Other | | | [removed: 21,834.5] [added: 27,314.3] | | | | [removed: 17,154.3] [added: 21,834.5] | |

| Financial Services | | | [removed: 1,687.8] [added: 1,505.4] | | | | [removed: 1,574.2] [added: 1,687.8] | |

| Truck, Parts and Other | | | [removed: 1,925.5] [added: 3,198.8] | | | | [removed: 1,398.9] [added: 1,943.2] | |

| Financial Services | | | [removed: 437.6] [added: 588.9] | | | | [removed: 223.1] [added: 437.6] | |

| Investment income | | | [removed: 15.5] [added: 61.0] | | | | [removed: 35.9] [added: 15.5] | |

| Diluted earnings per share | | $ | [removed: 5.32] [added: 5.75] | | | $ | [removed: 3.74] [added: 3.57] | |

| After-tax return on revenues | | | [removed: 7.9] [added: 10.4] | % | | | [removed: 6.9] [added: 7.9] | % |

[removed: 2021] [added: 2022] Compared to [removed: 2020:][added: 2021:]

The Company’s Truck segment accounted for [removed: 71%] [added: 75%] of revenues in [removed: 2021] [added: 2022] compared to [removed: 70%] [added: 71%] in [removed: 2020.][added: 2021.]

| Year Ended December 31, | | | [removed: 2021] [added: 2022] | | | | [removed: 2020] [added: 2021] | | | % CHANGE | | |

| U.S. and Canada | | | [removed: 86,300] [added: 95,600] | | | | [removed: 73,300] [added: 86,300] | | | | [removed: 18] [added: 11] | |

| Europe | | | [removed: 53,200] [added: 62,400] | | | | [removed: 42,900] [added: 53,200] | | | | [removed: 24] [added: 17] | |

| Mexico, South America, Australia and other | | | [removed: 23,200] [added: 27,900] | | | | [removed: 17,100] [added: 23,200] | | | | [removed: 36] [added: 20] | |

| Total units | | | [removed: 162,700] [added: 185,900] | | | | [removed: 133,300] [added: 162,700] | | | | [removed: 22] [added: 14] | |

On December 6, 2022, the Board of Directors declared a 50% common stock dividend payable on February 7, 2023.

For all years presented, all per share data and dividends have been restated for the effect of the 50% dividend.

The new DAF XD truck was named *International Truck of the Year 2023* at the IAA truck show in Hannover, Germany in the third quarter of 2022.

The DAF XD truck represents a new generation of distribution and vocational vehicles.

The DAF XD shares many features and design elements with the new DAF XF, XG, and XG+ trucks, which were named *International Truck of the Year 2022*.

PACCAR Parts opened a new 260,000 square foot PDC in Louisville, Kentucky in 2022 to further enhance parts availability for customers and dealers.

The Company is increasing its investment in next generation clean diesel and electric powertrain technologies, autonomous driving systems, connected vehicle services, advanced manufacturing and enhanced distribution capabilities.

| | | $ | 28,819.7 | | | $ | 23,522.3 | |

| Truck | | $ | 1,753.3 | | | $ | 804.9 | |

| Parts | | | 1,446.6 | | | | 1,110.0 | |

| Other | | | (1.1 | ) | | | 28.3 | |

| Income taxes | | | (837.1 | ) | | | (530.8 | ) |

| Net Income | | $ | 3,011.6 | | | $ | 1,865.5 | |

The industry-wide undersupply of component products had an impact on deliveries.

| | | $ | 21,486.2 | | | $ | 16,799.7 | | | | 28 | |

| 2021 | | $ | 16,799.7 | | | $ | 15,485.4 | | | $ | 1,314.3 | |

| Truck sales volume | | | 3,052.7 | | | | 2,557.3 | | | | 495.4 | |

| Currency translation | | | (845.9 | ) | | | (778.3 | ) | | | (67.6 | ) |

| Total increase | | | 4,686.5 | | | | 3,720.0 | | | | 966.5 | |

| 2022 | | $ | 21,486.2 | | | $ | 19,205.4 | | | $ | 2,280.8 | |

| • | Truck sales volume reflects higher heavy-duty truck deliveries in all major markets. |

| • | Average truck sales prices increased sales by $2.38 billion, primarily due to higher price realization worldwide reflecting inflationary cost increases and the positive effect of new truck models. |

| Year Ended December 31, | | 2022 | | | | 2021 | | | | % CHANGE | | |

| | | $ | 5,764.3 | | | $ | 4,944.3 | | | | 17 | |

| 2021 | | $ | 4,944.3 | | | $ | 3,530.4 | | | $ | 1,413.9 | |

| Aftermarket parts volume | | | 375.9 | | | | 238.7 | | | | 137.2 | |

| Currency translation | | | (165.3 | ) | | | (98.6 | ) | | | (66.7 | ) |

| Total increase | | | 820.0 | | | | 479.2 | | | | 340.8 | |

| 2022 | | $ | 5,764.3 | | | $ | 4,009.6 | | | $ | 1,754.7 | |

Parts SG&A expense in 2022 increased to $216.3 million from $210.3 million in 2021.

As a percentage of sales, Parts SG&A was 3.8% in 2022 and 4.3% in 2021.

| Year Ended December 31, | | | 2022 | | | | 2021 | | | % CHANGE | | |

| | | $ | 6,215.7 | | | $ | 5,671.7 | | | | 10 | |

| | | $ | 6,215.7 | | | $ | 5,671.7 | | | | 10 | |

| | | | 53,700 | | | | 50,100 | | | | 7 | |

| | | $ | 15,001.4 | | | $ | 14,529.9 | | | | 3 | |

| | | $ | 15,001.4 | | | $ | 14,529.9 | | | | 3 | |

| | | $ | 1,505.4 | | | $ | 1,687.8 | | | | (11 | ) |

| | | $ | 1,505.4 | | | $ | 1,687.8 | | | | (11 | ) |

The effect of currency translation decreased new loan and lease volume by $209.3 million, primarily due to the lower euro relative to the U.S. dollar.

The Company launched new DAF XF, XG and XG+ truck models in 2021, which provide unsurpassed performance including up to a 10% fuel efficiency gain, side view cameras, larger interior space and a customizable digital dashboard.

The trucks’ streamlined silhouette incorporates the new European regulations governing truck design.

The Company began production of the next generation Kenworth T680 and Peterbilt 579 heavy-duty truck models, offering major enhancements in uptime, connectivity technology, aerodynamics, fuel-efficiency and driver comfort in the third quarter of 2021.

The new models feature PACCAR MX-13 and MX-11 engines with the integrated PACCAR Transmission for up to a 7% increase in fuel-efficiency.

Kenworth and Peterbilt began production of their new medium-duty truck models designed to serve a wide variety of applications in the third quarter of 2021.

PACCAR began production of seven battery electric vehicle models in 2021 for Peterbilt, Kenworth and DAF customers.

PACCAR battery electric heavy- and medium-duty vehicles provide competitive total cost of ownership for customers operating in city and regional haul, port drayage and refuse applications.

Current high levels of freight tonnage, freight rates and fleet utilization are contributing to customers’ profitability and cash flow.

| | | $ | 23,522.3 | | | $ | 18,728.5 | |

| Truck | | $ | 795.8 | | | $ | 581.4 | |

| Parts | | | 1,104.1 | | | | 799.3 | |

| Other | | | 25.6 | | | | 18.2 | |

| Income taxes | | | (526.5 | ) | | | (359.5 | ) |

| Net Income | | $ | 1,852.1 | | | $ | 1,298.4 | |

Company’s dealer network as a percentage of total registrations or retail sales depending on the geographic market.

| | | $ | 16,799.7 | | | $ | 13,164.8 | | | | 28 | |

In 2021, truck deliveries and margins were impacted by the global semiconductor supply shortage.

| 2020 | | $ | 13,164.8 | | | $ | 12,171.7 | | | $ | 993.1 | |

| Truck sales volume | | | 2,804.8 | | | | 2,378.9 | | | | 425.9 | |

| Currency translation | | | 277.5 | | | | 238.7 | | | | 38.8 | |

| Total increase | | | 3,634.9 | | | | 3,322.8 | | | | 312.1 | |

| 2021 | | $ | 16,799.7 | | | $ | 15,494.5 | | | $ | 1,305.2 | |

| • | Truck sales volume reflects higher unit deliveries in all markets, primarily in the U.S. and Canada ($1.43 billion sales and $1.19 billion cost of sales), and Europe ($884.5 million sales and $750.8 million cost of sales) due to increased demand. |

| | | $ | 4,944.3 | | | $ | 3,912.9 | | | | 26 | |

| 2020 | | $ | 3,912.9 | | | $ | 2,842.8 | | | $ | 1,070.1 | |

| Aftermarket parts volume | | | 720.8 | | | | 481.8 | | | | 239.0 | |

| Currency translation | | | 70.9 | | | | 40.2 | | | | 30.7 | |

| Total increase | | | 1,031.4 | | | | 693.5 | | | | 337.9 | |

| 2021 | | $ | 4,944.3 | | | $ | 3,536.3 | | | $ | 1,408.0 | |

| • | Average aftermarket parts sales prices increased sales by $239.7 million primarily due to higher price realization in North America and Europe. |

As a percentage of sales, Parts SG&A decreased to 4.3% in 2021 from 4.9% in 2020, primarily due to higher net sales.

| | | $ | 5,671.7 | | | $ | 5,018.7 | | | | 13 | |

| | | | 50,100 | | | | 46,800 | | | | 7 | |

| | | $ | 14,529.9 | | | $ | 14,353.9 | | | | 1 | |

| | | $ | 1,687.8 | | | $ | 1,574.2 | | | | 7 | |

PFS revenues increased to $1.69 billion in 2021 from $1.57 billion in 2020.

The increase was primarily due to higher used truck sales in Europe and North America.

The effect of currency translation increased 2021 PFS income before income taxes by $8.8 million.

| 2020 | | $ | 527.4 | | | $ | 192.1 | | | $ | 335.3 | |

| Yields | | | (14.6 | ) | | | | | | | (14.6 | ) |

| Fair Value (Losses) Gains | | [removed: 2021] [added: 2022] | | | | [removed: 2020] [added: 2021] | | |

| Cash equivalents and marketable debt securities | | $ | (26.7 | ) | | $ | [removed: (26.9] [added: (26.7] | ) |

| Fixed rate loans | | | [removed: (110.5] [added: (117.4] | ) | | | [removed: (105.7] [added: (110.5] | ) |

| Fixed rate term debt | | | [removed: 127.6] [added: 136.6] | | | | [removed: 124.3] [added: 127.6] | |

| Interest-rate swaps | | | [removed: 4.5] [added: 6.4] | | | | [removed: 14.2] [added: 4.5] | |

| Total | | $ | [removed: (5.1] [added: (1.1] | ) | | $ | [removed: 5.9] [added: (5.1] | [added: )] |

Based on the Company’s sensitivity analysis, the potential loss in fair value for such financial instruments from a 10% unfavorable change in quoted foreign currency exchange rates would be a loss of [removed: $210.8] [added: $216.6] related to contracts outstanding at December 31, [removed: 2021,] [added: 2022,] compared to a loss of [removed: $155.2] [added: $210.8] at December 31, [removed: 2020.][added: 2021.]

Based on the Company’s sensitivity analysis, the potential loss in fair value for such financial instruments from a 10% unfavorable change in quoted commodity prices would be a loss of [removed: $18.4] [added: $2.5] related to contracts outstanding at December 31, [added: 2022, compared to a loss of $18.4 at December 31,] 2021.

2021,

PACCAR competes in the European light/medium market with DAF COE trucks assembled in the United Kingdom (U.K.) by Leyland, one of PACCAR’s wholly owned subsidiaries, and participates in the European heavy market with DAF COE trucks assembled in the Netherlands and the U.K. PACCAR competes in the Brazilian heavy truck market with DAF [added: COE] models assembled at Ponta Grossa in the state of Paraná, Brasil.

PACCAR competes in the Australian medium and heavy truck markets with Kenworth conventional and COE models and certain DAF COE models assembled at its facility at Bayswater in the state of Victoria, Australia, and DAF COE models primarily assembled in the U.K. Commercial truck manufacturing comprises the largest segment of PACCAR’s business and accounted for [removed: 71%] [added: 75%] of total [removed: 2021] [added: 2022] net sales and revenues.

In [removed: 2021,] [added: 2022,] the Company installed PACCAR engines in approximately [removed: 38%] [added: 42%] of the Company’s Kenworth and Peterbilt heavy‑duty trucks in the U.S. and Canada and substantially all of the DAF heavy-duty trucks sold throughout the world.

The value of finished truck components manufactured by independent suppliers ranges from approximately [removed: 36%] [added: 34%] in Europe to approximately 86% in North America.

The Company’s DAF subsidiary purchases fully assembled cabs from a competitor, Renault V.I., for its European [removed: light-duty] [added: light-, medium-duty] product line pursuant to a joint product development and long-term supply contract.

Sales of trucks manufactured with these cabs amounted to approximately 3% of consolidated revenues in [removed: 2021.][added: 2022.]

The Company’s share of the U.S. and Canadian Class 8 market was [removed: 29.2%] [added: 29.8%] of retail sales in [removed: 2021,] [added: 2022,] and the Company’s medium-duty market share was [removed: 19.8%.][added: 10.9%.]

In Europe, there are six principal competitors in the commercial truck market, including parent companies to [added: the] four competitors of the Company in the U.S. In [removed: 2021,] [added: 2022,] DAF had a [removed: 15.9%] [added: 17.3%] share of the European heavy-duty market and a [removed: 10.1%] [added: 9.7%] share of the light/medium-duty market.

The Company had a total production backlog of [removed: $15.9] [added: $18.1] billion at the end of [removed: 2021.][added: 2022.]

The 90‑day backlog approximated [removed: $5.2] [added: $8.0] billion at December 31, [removed: 2021, $4.6] [added: 2022, $5.2] billion at December 31, [removed: 2020] [added: 2021] and [removed: $3.3] [added: $4.6] billion at December 31, [removed: 2019.][added: 2020.]

Production of the year-end [removed: 2021] [added: 2022] backlog is expected to be substantially completed during [removed: 2022.][added: 2023.]

The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles to over [removed: 2,200] [added: 2,300] Kenworth, Peterbilt and DAF dealers in 95 countries around the world.

The Parts segment accounted for [removed: 21%] [added: 20%] of total [removed: 2021] [added: 2022] net sales and revenues.

PFS accounted for [removed: 7%] [added: 5%] of total net sales and revenues and [removed: 53%] [added: 52%] of total assets in [removed: 2021.][added: 2022.]

The fleet class consists of customers operating [removed: more than] five [added: or more] trucks.

Sales of industrial winches were less than 1% of total net sales and revenues in [removed: 2021, 2020,] [added: 2022, 2021] and [removed: 2019.][added: 2020.]

The Company will continue to fund capital and R&D projects to meet future emissions and certification requirements through the introduction of new technologies to our [added: products,] engines and exhaust after-treatment systems.

Information regarding the effects that compliance with international, federal, state and local [removed: provisions regulating the environment] [added: environmental regulations] have on the Company’s capital and operating expenditures and the Company’s involvement in environmental matters is included in [added: Item 1A, “Risk Factors” and in] Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Company’s Consolidated Financial Statements in Items 7 and 8, respectively.

The Company provides its employees with robust [removed: benefits] [added: benefit] packages, comprehensive training programs, tuition assistance and a work environment that promotes safety and diversity.

On December 31, [removed: 2021,] [added: 2022,] the Company had approximately [removed: 28,500] [added: 31,100] employees.

Approximately [removed: 37%] [added: 38%] are U.S. employees.

In [removed: 2021,] [added: 2022,] PACCAR achieved an [removed: A] [added: “A”] score from CDP, placing in the top 1.5% of [removed: over 13,000 companies] [added: more than 18,000] reporting [added: companies] and demonstrating a robust approach to reducing greenhouse gas emissions in Kenworth, Peterbilt and DAF vehicles and from our global operations.

PACCAR has earned an “A” or “A-” rating for [removed: seven] [added: eight] consecutive years.

PACCAR has established [removed: new] emissions reduction targets in partnership with the Science Based Targets Initiative (SBTi).

SBTi works with more than [removed: 1,000] [added: 4,000] companies worldwide to create a clearly defined path to reduce greenhouse gas [removed: emissions,] [added: emissions in line] with the [removed: goal to help limit global warming to below 2 degrees Celsius compared to pre-industrial levels.][added: Paris Agreement.]

The company invests in technologies that reduce greenhouse gas emissions such as highly [removed: fuel efficient] [added: fuel-efficient] diesel engines, natural gas and biofuel engines, as well as next generation electric, hybrid, and hydrogen fuel cell powertrains.

PACCAR’s Zero [removed: Emission] [added: Emissions] Trucks \- PACCAR’s research and development efforts include several demonstration and development projects for Kenworth, Peterbilt and DAF vehicles, including [removed: battery electric,] [added: battery-electric,] hydrogen fuel cell, hydrogen combustion and hybrid technologies.

PACCAR is currently producing [removed: battery electric] [added: battery-electric] Kenworth, Peterbilt and DAF trucks.

[removed: Low Carbon and Renewable Fuels \-] PACCAR’s MX-13 and MX-11 engines are certified to use B10/B20/B30 and XTL biofuels in Europe and B20 biofuel in the U.S. [removed: Biofuel capable unit sales represent 49% of PACCAR’s total global truck sales.][added: Engines not manufactured by the Company are certified to use up to B20 biofuels.]

Advanced Vehicles \- PACCAR is launching its SuperTruck 3 program to continue the development of its Class 8 Kenworth and Peterbilt [removed: battery electric] [added: battery-electric] and fuel cell vehicles, along with its vehicle charging stations.

The Company and its suppliers rely on semiconductors as an essential component in the production of its trucks and aftermarket parts.

The Company and its suppliers source semiconductors from various suppliers.

The Company’s operations and products are subject to extensive statutory and regulatory requirements governing greenhouse gas and non-greenhouse gas emissions.

These include standards imposed by the U.S. Environmental Protection Agency (EPA), the European Union, U.S. state regulatory agencies (such as the California Air Resources Board), regulatory agencies in other international markets where the Company operates, and non-binding international accords related to climate change.

The primary laws and regulations are the EPA’s Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium and Heavy-Duty Engines and Vehicles, the Regulation of the European Parliament and of the Council on the Monitoring and Reporting of CO2 Emissions from Fuel Consumption of New Heavy-Duty Vehicles, and the Heavy-Duty Omnibus Regulation of the California Air Resources Board.

PACCAR established its science-based greenhouse gas emission reduction targets to meet the goals of the Paris Agreement.

The Company continually monitors developments in emissions and climate change-related laws and regulations in the markets in which the Company conducts business.

The Company is proud to have been honored for the past several years as a *Top Company for Women to Work for in Transportation* by the Women in Trucking Association.

Low Carbon and Renewable Fuels – All truck sales and diesel engine unit sales are certified to use biofuels.

Our engines are subject to a wide variety of regulatory requirements that impose standards governing emissions, fuel efficiency and noise.

Our engines are certified globally through various categories within on-highway and off-highway applications.

Regulations in these categories typically control nitrous

oxides (NOx), particulate matter (PM) and greenhouse gases (GHG).

In response to the COVID-19 pandemic, the Company adapted its facilities for social distancing and implemented strong procedures to maintain appropriate health and safety protocols.

For the fiscal year ended December 31, [removed: 2021][added: 2022]

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 [added: (§232.405 of this chapter)] during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

[removed: The] [added: As of June 30, 2022, the] aggregate market value of the voting stock held by non-affiliates of the registrant [removed: as of June 30, 2021:][added: was $28.13 billion.]

Portions of the proxy statement for the annual stockholders meeting to be held on April [removed: 26, 2022] [added: 25, 2023] are incorporated by reference into Part [removed: III.][added: III of this From 10-K.]

| ITEM 1B. | [UNRESOLVED STAFF COMMENTS](#ITEM_1B_UNRESOLVED_STAFF_COMMENTS) | [removed: 12] [added: 13] |

| ITEM 2. | [PROPERTIES](#ITEM_2_PROPERTIES) | [removed: 13] [added: 14] |

| ITEM 3. | [LEGAL PROCEEDINGS](#ITEM_3_LEGAL_PROCEEDINGS) | [removed: 13] [added: 14] |

| ITEM 4. | [MINE SAFETY DISCLOSURES](#ITEM_4_MINE_SAFETY_DISCLOSURES) | [removed: 13] [added: 14] |

| [PART II](#PART_II) | | [removed: 14] [added: 15] |

| ITEM 5. | [MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#ITEM_5_MARKET_FOR_REGISTRANTS_COMMON_EQU) | [removed: 14] [added: 15] |

| ITEM 6. | [\[RESERVED\]](#ITEM_6_RESERVED) | [removed: 15] [added: 16] |

| ITEM 7. | [MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#ITEM_7_MANAGEMENTS_DISCUSSION_ANALYSIS_F) | [removed: 16] [added: 17] |

| ITEM 7A. | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#ITEM_7A_QUANTITATIVE_QUALITATIVE_DISCLOS) | [removed: 31] [added: 32] |

| ITEM 8. | [FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#ITEM_8_FINANCIAL_STATEMENTS_SUPPLEMENTAR) | [removed: 32] [added: 33] |

| ITEM 9. | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#ITEM_9_CHANGES_IN_DISAGREEMENTS_WITH_ACC) | [removed: 76] [added: 78] |

| ITEM 9A. | [CONTROLS AND PROCEDURES](#ITEM_9A_CONTROLS_PROCEDURES) | [removed: 76] [added: 78] |

| ITEM 9B. | [OTHER INFORMATION](#ITEM_9B_OR_INFORMATION) | [removed: 76] [added: 78] |

| ITEM 9C. | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#ITEM_9C_DISCLOSURE_REGARDING_FOREIGN) | [removed: 76] [added: 78] |

| [PART III](#PART_III) | | [removed: 77] [added: 79] |

| ITEM 10. | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](#ITEM_10_DIRECTORS_EXECUTIVE_FICERS_CORPO) | [removed: 77] [added: 79] |

| ITEM 11. | [EXECUTIVE COMPENSATION](#ITEM_11_EXECUTIVE_COMPENSATION) | [removed: 77] [added: 79] |

| ITEM 12. | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#ITEM_12_SECURITY_OWNERSHIP_CERTAIN_BENEF) | [removed: 77] [added: 80] |

| ITEM 13. | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#ITEM_13_CERTAIN_RELATIONSHIPS_RELATED_TR) | [removed: 78] [added: 80] |

| ITEM 14. | [PRINCIPAL ACCOUNTING FEES AND SERVICES](#ITEM_14_PRINCIPAL_ACCOUNTING_FEES_SERVIC) | [removed: 78] [added: 80] |

| [PART IV](#PART_IV) | | [removed: 79] [added: 81] |

| ITEM 15. | [EXHIBITS, FINANCIAL STATEMENT SCHEDULES](#ITEM_15_EXHIBITS_FINANCIAL_STATEMENT_SCH) | [removed: 79] [added: 81] |

| [SIGNATURES](#SIGNATURES) | | [removed: 82] [added: 84] |

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

As of February 10, 2023, there were 522,513,846 shares of common stock, $1 par value, of the registrant outstanding.

| --- | --- | --- | --- | --- | --- |

Common Stock, $1 par value – $30.45 billion

The number of shares outstanding of the registrant’s classes of common stock, as of January 31, 2022:

Common Stock, $1 par value – 347,571,995 shares

| Auditor Firm Id: | 42 | Auditor Name: | Ernst & Young LLP | Auditor Location: | Seattle, Washington |

Information about the Company’s Executive Officers as of February [removed: 23, 2022] [added: 22, 2023] is as follows:

| Mark C. Pigott [removed: (68)] [added: (69)] | | Executive Chairman of the Board of Directors since April 2014; Chairman and Chief Executive Officer from 1997 to April 2014. Mr. Pigott is the brother of John M. Pigott, a director of the Company. |

| R. Preston Feight [removed: (54)] [added: (55)] | | Chief Executive Officer since July 2019; Executive Vice President [added: from] September 2018 to June 2019; Vice President of PACCAR and President of DAF Trucks N.V. from April 2016 to August 2018. |

| Harrie C.A.M. Schippers [removed: (59)] [added: (60)] | | President and Chief Financial Officer since January [removed: 2018; Executive Vice President and Chief Financial Officer from February 2017 to December 2017; Senior Vice President from April 2016 to February 2017.] [added: 2018.] |

| Michael T. Barkley [removed: (66)] [added: (67)] | | Senior Vice President and Controller since January 2016. |

| C. Michael Dozier [removed: (56)] [added: (57)] | | [removed: Senior] [added: Executive] Vice President since January [removed: 2020;] [added: 2023; Senior] Vice President [added: from January 2020 to December 2022; Vice President] of PACCAR from August 2019 to December 2019; Vice President of PACCAR and General Manager, Kenworth from April 2016 to July 2019. |

| John [added: N.] Rich [removed: (53)] [added: (54)] | | Vice President and Chief Technology Officer since March 2021; Prior to that, he worked for 30 years at Ford Motor Company in positions of increasing responsibility including Director of Autonomous Vehicles and Technology; Chief Operating Officer of AV LLC and Executive Director of Global Strategy. |

| Darrin C. Siver [removed: (55)] [added: (56)] | | [removed: Senior] [added: Executive] Vice President since January [removed: 2017.] [added: 2023; Senior Vice President from January 2017 to December 2022.] |

| Kevin D. Baney [removed: (51)] [added: (52)] | | Vice President of PACCAR and General Manager of Kenworth Truck Company since August 2019; Assistant General Manager – Sales and Marketing, Kenworth from January 2017 to July 2019. |

| Todd R. Hubbard [removed: (59)] [added: (60)] | | Vice President, Global Financial Services since February 2019; President, PACCAR Financial Corp. from April 2011 to January 2019. |

| A. Lily Ley [removed: (56)] [added: (57)] | | Vice President and Chief Information Officer since January 2017. |

| Jason P. Skoog [removed: (50)] [added: (51)] | | Vice President of PACCAR and General Manager of Peterbilt since April 2018; Assistant General Manager – Operations, Kenworth from January 2017 to March 2018. |

| Michael K. Walton [removed: (57)] [added: (58)] | | Vice President and General Counsel since August 2020; Senior Counsel from August 2007 to July 2020. |

| Harry M.B. Wolters [removed: (51)] [added: (52)] | | Vice President of PACCAR and [added: General Manager Global Powertrain & Electrification since August 2022; Vice] President of [added: PACCAR and President of] DAF Trucks N.V. [removed: since] [added: from] September [removed: 2018;] [added: 2018 to July 2022;] European Sales Director, DAF Trucks, from October 2017 to August [removed: 2018; Operations Director, DAF Trucks from October 2014 to September 2017.] [added: 2018.] |

| Laura J. Bloch (46) | | Vice President of PACCAR and General Manager of PACCAR Parts since March 2022; Senior Assistant General Manager of Sales and Marketing, PACCAR Parts from August 2021 to February 2022; Assistant General Manager of Sales and Marketing, Kenworth from February 2019 to July 2021; Assistant General Manager of PACCAR Parts from January 2016 to January 2019. |

| Paulo H. Bolgar (54) | | Vice President and Chief Human Resources Officer since June 2022; Served as Human Resources Vice President of Americas and Global Business Units and Global R&D for Baxter International, Inc. from January 2020 to May 2022; Human Resources Vice President of Global Operations and Quality for Baxter International, Inc. from April 2016 to December 2019. |

| Harald P. Seidel (55) | | Vice President of PACCAR and President of DAF Trucks N.V. since August 2022; Director of Finance from October 2017 to July 2022. |

| | | |

| | | |

| David J. Danforth (61) | | Vice President of PACCAR and General Manager, PACCAR Parts since 2014. |

| Jack K. LeVier (62) | | Vice President, Human Resources since June 2007. |

| Parts | | | [removed: 6] [added: 7] | | | | 2 | | | | 2 | | | | 1 | | | | [removed: 5] [added: 4] | | | | 2 | |

There were [removed: 1,542] [added: 1,495] record holders of the common stock at December 31, [removed: 2021.][added: 2022.]

The following table provides information as of December 31, [removed: 2021] [added: 2022] regarding compensation plans under which PACCAR equity securities are authorized for [removed: issuance.][added: issuance and has been adjusted to reflect the Company’s 50% stock dividend in February 2023.]

Securities to be issued include [removed: 397,387] [added: 649,986] shares that represent deferred cash awards payable in stock.

Securities available for future grant are authorized under the following two plans: (i) [removed: 10,605,531] [added: 15,036,039] shares under the LTI Plan, and (ii) [removed: 659,351] [added: 963,913] shares under the RSDC Plan.

The following line graph compares the yearly percentage change in the cumulative total stockholder return on the Company’s common stock, to the cumulative total return of the Standard & Poor’s Composite 500 Stock Index and the return of the industry peer [removed: groups] [added: group] of companies identified in the graph (the “Peer Group Index”) for the last five fiscal years ended December 31, [removed: 2021.][added: 2022.]

The Peer Group Index consists of AGCO Corporation, Caterpillar Inc., CNH Industrial N.V., Cummins Inc., Dana Incorporated, Deere & Company, Eaton Corporation, [removed: Meritor Inc.,] Navistar International Corporation (from [removed: 2016] [added: 2017] through 2020), Oshkosh Corporation, TRATON SE (effective January 1, 2021) and AB Volvo.

The comparison assumes that $100 was invested December 31, [removed: 2016,] [added: 2017,] in the Company’s common stock and in the stated indices and assumes reinvestment of dividends.

[removed: ][added: ]

| | | [removed: 2016 | | | |] 2017 | | | | 2018 | | | | 2019 | | | | 2020 | | | | 2021 | | | [added: | 2022 | | |]

As of December 31, [removed: 2021,] [added: 2022,] the Company has repurchased $110.0 million of shares under this plan.

There were no repurchases made during the fourth quarter of [removed: 2021.][added: 2022.]

| Stock compensation plans approved by stockholders | | | 5,244,614 | | | $ | 51.10 | | | | 15,999,952 | |

Meritor Inc. is no longer included in the Peer Group Index of the performance graph due to its acquisition by Cummins Inc. in 2022.

| PACCAR Inc | | | 100 | | | | 84.68 | | | | 122.83 | | | | 137.25 | | | | 144.97 | | | | 169.61 | |

| S&P 500 Index | | | 100 | | | | 95.62 | | | | 125.72 | | | | 148.85 | | | | 191.58 | | | | 156.88 | |

| Peer Group Index | | | 100 | | | | 82.72 | | | | 106.15 | | | | 140.73 | | | | 173.49 | | | | 190.49 | |

| Stock compensation plans approved by stockholders | | | 3,526,452 | | | $ | 70.90 | | | | 11,264,882 | |

| PACCAR Inc | | | 100 | | | | 114.82 | | | | 97.23 | | | | 141.03 | | | | 157.59 | | | | 166.45 | |

| S&P 500 Index | | | 100 | | | | 121.83 | | | | 116.49 | | | | 153.17 | | | | 181.35 | | | | 233.41 | |

| Peer Group Index | | | 100 | | | | 150.90 | | | | 124.71 | | | | 160.24 | | | | 212.47 | | | | 261.52 | |

| Year Ended December 31, | | [removed: 2021] [added: 2022] | | | | [removed: 2020] [added: 2021] | | | | [removed: 2019] [added: 2020] | | |

| | | (millions, except per share data) | | | | | | | | | | | [added: |]

| Net sales and revenues | | $ | [removed: 21,834.5] [added: 27,314.3] | | | $ | [removed: 17,154.3] [added: 21,834.5] | | | $ | [removed: 24,119.7] [added: 17,154.3] | |

| Cost of sales and revenues | | [added: $] | 19,110.1 | | | [added: $] | [removed: 15,076.4] [added: (17.7] | [added: )] | | [added: $] | [removed: 20,555.6] [added: 19,092.4] | |

| Research and development | | | [removed: 324.1] [added: 341.2] | | | | [removed: 273.9] [added: 324.1] | | | | [removed: 326.6] [added: 273.9] | |

| Selling, general and administrative | | | [removed: 547.4] [added: 592.4] | | | | [removed: 459.2] [added: 547.4] | | | | [removed: 561.5] [added: 459.2] | |

| Interest and other (income), net | | | [removed: (72.6] [added: (109.1] | ) | | | [removed: (54.1] [added: (72.6] | ) | | | [removed: (42.0] [added: (54.1] | ) |

| Truck, Parts and Other Income Before Income Taxes | | | [removed: 1,925.5] [added: 3,198.8] | | | | [removed: 1,398.9] [added: 1,943.2] | | | | [removed: 2,718.0] [added: 1,402.6] | |

| Interest and fees | | | [removed: 524.4] [added: 628.7] | | | | [removed: 527.4] [added: 524.4] | | | | [removed: 583.0] [added: 527.4] | |

| Operating lease, rental and other revenues | | | [removed: 1,163.4] [added: 876.7] | | | | [removed: 1,046.8] [added: 1,163.4] | | | | [removed: 897.0] [added: 1,046.8] | |

| Revenues | | | [removed: 1,687.8] [added: 1,505.4] | | | | [removed: 1,574.2] [added: 1,687.8] | | | | [removed: 1,480.0] [added: 1,574.2] | |

| Interest and other borrowing expenses | | | [removed: 150.9] [added: 216.3] | | | | [removed: 192.1] [added: 150.9] | | | | [removed: 230.5] [added: 192.1] | |

| Depreciation and other expenses | | | [removed: 969.4] [added: 560.8] | | | | [removed: 1,008.0] [added: 969.4] | | | | [removed: 798.2] [added: 1,008.0] | |

| Selling, general and administrative | | | [removed: 129.4] [added: 133.9] | | | | [removed: 122.2] [added: 129.4] | | | | [removed: 137.0] [added: 122.2] | |

| Provision for losses on receivables | | | [removed: .5] [added: 5.5] | | | | [removed: 28.8] [added: .5] | | | | [removed: 15.4] [added: 28.8] | |

| | | | [removed: 1,250.2] [added: 916.5] | | | | [removed: 1,351.1] [added: 1,250.2] | | | | [removed: 1,181.1] [added: 1,351.1] | |

| Financial Services Income Before Income Taxes | | | [removed: 437.6] [added: 588.9] | | | | [removed: 223.1] [added: 437.6] | | | | [removed: 298.9] [added: 223.1] | |

| Investment income | | | [removed: 15.5] [added: 61.0] | | | | [removed: 35.9] [added: 15.5] | | | | [removed: 82.3] [added: 35.9] | |

| Total Income Before Income Taxes | | | [removed: 2,378.6] [added: 3,848.7] | | | | [removed: 1,657.9] [added: 2,396.3] | | | | [removed: 3,099.2] [added: 1,661.6] | |

| Income [removed: taxes] [added: Taxes] | | | [removed: 526.5] [added: 359.5] | | | | [removed: 359.5] [added: .9] | | | | [removed: 711.3] [added: 360.4] | |

| Net Income | | [removed: $] | 1,852.1 | | | [removed: $] | [removed: 1,298.4] [added: 13.4] | | | [removed: $] | [removed: 2,387.9] [added: 1,865.5] | |

| Year Ended December 31, | | | [removed: 2021] [added: 2022] | | | | [removed: 2020] [added: 2021] | | | | [removed: 2019] [added: 2020] | |

| Net gain (loss) arising during the period | | | [removed: 54.2] [added: 17.7] | | | | [removed: (105.3] [added: 54.2] | [removed: )] | | | [removed: (76.1] [added: (105.3] | ) |

| Tax effect | | | [removed: (14.3] [added: (9.1] | ) | | | [removed: 26.9] [added: (14.3] | [added: )] | | | [removed: 19.1] [added: 26.9] | |

| Reclassification adjustment | | | [removed: (33.7] [added: 48.0] | [removed: )] | | | [removed: 87.6] [added: (33.7] | [added: )] | | | [removed: 51.7] [added: 87.6] | |

| Tax effect | | | [removed: 9.5] [added: (8.0] | [added: )] | | | [removed: (23.1] [added: 9.5] | [removed: )] | | | [removed: (12.0] [added: (23.1] | ) |

| | | | [removed: 15.7] [added: 48.6] | | | | [removed: (13.9] [added: 15.7] | [removed: )] | | | [removed: (17.3] [added: (13.9] | ) |

| Net holding (loss) gain | | | [removed: (18.8] [added: (54.9] | ) | | | [removed: 13.6] [added: (18.8] | [added: )] | | | [removed: 11.6] [added: 13.6] | |

| Tax effect | | | [removed: 4.7] [added: 13.6] | | | | [removed: (3.3] [added: 4.7] | [removed: )] | | | [removed: (2.9] [added: (3.3] | ) |

| Reclassification adjustment | | | [removed: (2.1] [added: (1.6] | ) | | | [removed: (2.4] [added: (2.1] | ) | | | [removed: (.4] [added: (2.4] | ) |

| Tax effect | | | [removed: .5] [added: .4] | | | | [removed: .6] [added: .5] | | | | [removed: .1] [added: .6] | |

| | | | [removed: (15.7] [added: (42.5] | ) | | | [removed: 8.5] [added: (15.7] | [added: )] | | | [removed: 8.4] [added: 8.5] | |

| Net gain (loss) arising during the period | | | [removed: 343.2] [added: 170.5] | | | | [removed: (132.4] [added: 343.2] | [removed: )] | | | [removed: (74.8] [added: (132.4] | ) |

| Tax effect | | | [removed: (80.3] [added: (34.1] | ) | | | [removed: 28.4] [added: (80.3] | [added: )] | | | [removed: 18.0] [added: 28.4] | |

| Reclassification adjustment | | | [removed: 59.5] [added: 29.6] | | | | [removed: 57.3] [added: 59.5] | | | | [removed: 21.9] [added: 57.3] | |

| Tax effect | | | [removed: (14.1] [added: (7.1] | ) | | | [removed: (13.7] [added: (14.1] | ) | | | [removed: (5.0] [added: (13.7] | ) |

| | | | [removed: 308.3] [added: 158.9] | | | | [removed: (60.4] [added: 308.3] | [removed: )] | | | [removed: (39.9] [added: (60.4] | ) |

| Foreign currency translation (loss) gain | | | [removed: (179.1] [added: (197.3] | ) | | | [removed: 115.6] [added: (179.1] | [added: )] | | | [removed: 47.2] [added: 115.6] | |

| Net other comprehensive [removed: income] (loss) [added: income] | | | [removed: 129.2] [added: (32.3] | [added: )] | | | [removed: 49.8] [added: 129.2] | | | | [removed: (1.6] [added: 49.8] | [removed: )] |

| December 31, | | [added: | 2022 | | | |] 2021 | | | | 2020 | | |

| Cost of sales and revenues | | | 23,291.0 | | | | 19,092.4 | | | | 15,072.7 | |

| | | | 24,115.5 | | | | 19,891.3 | | | | 15,751.7 | |

| Income taxes | | | 837.1 | | | | 530.8 | | | | 360.4 | |

| Net Income | | $ | 3,011.6 | | | $ | 1,865.5 | | | $ | 1,301.2 | |

| Basic | | $ | 5.76 | | | $ | 3.58 | | | $ | 2.50 | |

| Diluted | | $ | 5.75 | | | $ | 3.57 | | | $ | 2.50 | |

| Basic | | | 522.6 | | | | 521.7 | | | | 520.2 | |

| Diluted | | | 523.4 | | | | 522.7 | | | | 521.2 | |

| Net income | | $ | 3,011.6 | | | $ | 1,865.5 | | | $ | 1,301.2 | |

| Comprehensive Income | | $ | 2,979.3 | | | $ | 1,994.7 | | | $ | 1,351.0 | |

| Inventories, net | | | 2,198.8 | | | | 1,976.0 | |

| | | $ | 33,275.5 | | | $ | 29,509.4 | |

| Other liabilities | | | 1,490.1 | | | | 1,487.6 | |

| | | $ | 33,275.5 | | | $ | 29,509.4 | |

| Net Income | | $ | 3,011.6 | | | $ | 1,865.5 | | | $ | 1,301.2 | |

| Deferred taxes | | | (208.0 | ) | | | (208.6 | ) | | | .4 | |

| Inventories | | | (272.7 | ) | | | (628.0 | ) | | | (51.9 | ) |

| 50% stock dividend | | | 174.0 | | | | | | | | | | |

| | | | | | | | | | | | | | |

| | | | | | | | | | | | | | |

| | | | | | | | | | | | | | |

| Balance at beginning of year | | | 12,025.8 | | | | 11,148.5 | | | | 10,539.0 | | |

| Net income | | | 3,011.6 | | | | 1,865.5 | | | | 1,301.2 | | |

| 50% stock dividend | | | (174.0 | ) | | | | | | | | | |

| Balance at end of year | | | 13,402.4 | | | | 12,025.8 | | | | 11,148.5 | | |

| | | | | | | | | | | | | | |

| Total Stockholders’ Equity | | $ | 13,167.1 | | | $ | 11,594.0 | | | $ | 10,533.3 | | |

December 31, 2022, 2021 and 2020 (currencies in millions)

| | | $ | 467.6 | | | $ | 483.9 | | | $ | 659.3 | | | $ | 687.9 | |

| | | $ | 77.7 | | | $ | 181.4 | | | $ | 72.9 | | | $ | 172.1 | |

December 31, 2022, 2021 and 2020 (currencies in millions)

December 31, 2022, 2021 and 2020 (currencies in millions)

December 31, 2022, 2021 and 2020 (currencies in millions)

December 31, 2022, 2021 and 2020 (currencies in millions)

Government Grants: The Company receives incentives from U.S. and non-U.S. governmental entities in the form of tax rebates or credits, grants, and loans.

The benefit is generally recorded when all conditions attached to the incentive have been met and there is reasonable assurance of the receipt.

Government incentives are recorded in accordance with their purpose as a reduction of expense, a reduction of the cost of the capital investment, or other income.

The amount of government incentives recorded as a reduction of expenses and the amount of grants receivable for the years ended December 31, 2022, 2021 and 2020 are immaterial.

On December 6, 2022, the Board of Directors declared a 50% common stock dividend payable on February 7, 2023, to stockholders of record on January 17, 2023, with fractional shares to be paid in cash.

This resulted in the issuance of 174,035,361 additional shares and 411 fractional shares paid in cash.

| --- | --- |

| | | | | | | | | | | | | |

| | | | 19,909.0 | | | | 15,755.4 | | | | 21,401.7 | |

| Basic | | $ | 5.33 | | | $ | 3.74 | | | $ | 6.88 | |

| Diluted | | $ | 5.32 | | | $ | 3.74 | | | $ | 6.87 | |

| Basic | | | 347.8 | | | | 346.8 | | | | 346.9 | |

| Diluted | | | 348.4 | | | | 347.4 | | | | 347.5 | |

| Comprehensive Income | | $ | 1,981.3 | | | $ | 1,348.2 | | | $ | 2,386.3 | |

| | | $ | 29,301.7 | | | $ | 28,260.0 | |

| Deferred taxes | | | (212.9 | ) | | | (.5 | ) | | | 70.8 | |

| Inventories | | | (610.3 | ) | | | (48.2 | ) | | | 24.6 | |

| Balance at beginning of year | | | 11,005.2 | | | | 10,398.5 | | | | 9,275.4 | |

| Treasury stock retirement | | | | | | | | | | | (22.8 | ) |

| Balance at end of year | | | 11,869.2 | | | | 11,005.2 | | | | 10,398.5 | |

| Total Stockholders’ Equity | | $ | 11,437.4 | | | $ | 10,390.0 | | | $ | 9,706.1 | |

| | | $ | 659.3 | | | $ | 687.9 | | | $ | 627.9 | | | $ | 664.1 | |

| | | $ | 72.9 | | | $ | 172.1 | | | $ | 62.2 | | | $ | 142.0 | |

In accordance with FASB statement, *Prudential Regulator Guidance Concerning*

Troubled Debt Restructurings, issued on March 22, 2020, short-term modifications granted to customers were not considered TDRs if they were not past due and were seeking to manage their liquidity needs because of the effects of the COVID-19 pandemic.

Cost of all other inventories is determined principally by the first-in, first-out (FIFO) method.

| 2018-14 | | Compensation – Retirement Benefits – Defined Benefit Plans – General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans |

| Total marketable securities | | $ | 1,409.7 | | | $ | 19.4 | | | $ | .1 | | | $ | 1,429.0 | |

| | | | | | | $ | 1,547.3 | | | $ | 1,545.7 | |

| | | | 1,976.0 | | | | 1,411.9 | |

| Less LIFO reserve | | | (207.7 | ) | | | (190.0 | ) |

| | | $ | 1,768.3 | | | $ | 1,221.9 | |

| | | $ | 12,037.7 | | | $ | 11,947.7 | |

| | | $ | 11,920.8 | | | $ | 11,820.7 | |

| 2022 | | | | $ | 2,084.9 | |

| 2023 | | | | | 1,620.5 | |

| 2024 | | | | | 1,344.4 | |

| 2025 | | | | | 843.3 | |

| 2026 | | | | | 434.5 | |

| Thereafter | | | | | 97.1 | |

| | | | | $ | 6,424.7 | |

| 2022 | | | | $ | 1,234.0 | |

| 2023 | | | | | 1,013.4 | |

| 2024 | | | | | 701.8 | |

| 2025 | | | | | 440.9 | |

| 2026 | | | | | 203.8 | |

Management’s Report on Internal Control over Financial Reporting on page [removed: 73] [added: 75] and Report of Independent Registered Public Accounting Firm on the Company’s internal control over financial reporting on page [removed: 75] [added: 77] for the year ended December 31, [removed: 2021,] [added: 2022,] are included in this Form 10-K.

There have been no changes in the Company’s internal controls over financial reporting during the fourth quarter of [removed: 2021] [added: 2022] that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

The following information is included in the proxy statement for the annual stockholders meeting of April [removed: 26, 2022] [added: 25, 2023] and is incorporated herein by reference:

The information required by this item is included in the proxy statement for the annual stockholders meeting of April [removed: 26, 2022] [added: 25, 2023] and is incorporated herein by reference.

The following information is included in the proxy statement for the annual stockholders meeting of April 25, 2023 and is incorporated herein by reference:

The following information is included in the proxy statement for the annual stockholders meeting of April [removed: 26, 2022] [added: 25, 2023] and is incorporated herein by reference:

Stock ownership information is included under the captions “STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS” and “STOCK OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS” in the proxy statement for the annual stockholders meeting of April [removed: 26, 2022] [added: 25, 2023] and is incorporated herein by reference.

No transactions with management and others as defined by Item 404 of Regulation S‑K occurred in [removed: 2021.][added: 2022.]

Information concerning director independence is included under the caption “BOARD GOVERNANCE” in the proxy statement for the annual stockholders meeting of April [removed: 26, 2022] [added: 25, 2023] and is incorporated herein by reference.

Principal accounting fees and services information is included under the caption “INDEPENDENT AUDITORS” in the proxy statement for the annual stockholders meeting of April [removed: 26, 2022] [added: 25, 2023] and is incorporated herein by reference.

Our independent registered public accounting firm is Ernst & Young LLP, Seattle, Washington (Auditor Firm ID No. 42).

— Years Ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019][added: 2020]

— December 31, [added: 2022,] 2021 and 2020

— [added: Years Ended] December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019][added: 2020]

| Exhibit Number | | Exhibit Description | | | | [removed: |] Form | | | | Date of First Filing | | | | [removed: | | |] Exhibit Number | | [removed: | |] File Number | | | [added: | | |]

| (3) (i) | | | | [removed: |] Articles of Incorporation: | | | | | | | | | | | | | | | | | | [removed: | |]

| | | | | [removed: |] [Amended and Restated Certificate of Incorporation of PACCAR Inc](http://www.sec.gov/Archives/edgar/data/75362/000119312518152947/d555135dex3i.htm) | | 8-K | | | | | May 4, 2018 | | | [removed: | |] [added: 3(i)] | | [removed: 3(i)] [added: 001-14817] | | | | [removed: 001-14817] | |

| | | | | [removed: |] [Certificate of Amendment of Amended and Restated Certificate of Incorporation of PACCAR Inc](http://www.sec.gov/Archives/edgar/data/75362/000119312520118696/d920234dex3i.htm) | | 8-K | | | | | April 24, 2020 | | | [removed: | |] [added: 3(i)] | | [removed: 3(i)] [added: 001-14817] | | | | [removed: 001-14817] | |

| (ii) | | | | [removed: |] Bylaws: | | | | | | | | | | | | | | | | | | [removed: | |]

| | | | | [removed: | [Sixth] [added: [Seventh] Amended and Restated Bylaws of PACCAR [removed: Inc](http://www.sec.gov/Archives/edgar/data/75362/000119312518343957/d662227dex3ii.htm)] [added: Inc](http://www.sec.gov/Archives/edgar/data/75362/000119312522202114/d380342dex993ii.htm)] | | 8-K | | | | | [removed: December 7, 2018 | |] [added: July 26, 2022] | | | [added: 3(ii)] | | [removed: 3(ii)] [added: 001-14817] | | | | [removed: 001-14817] | |

| (4) | | | | [removed: |] Instruments defining the rights of security holders, including indentures: | | | | | | | | | | | | | | | | | | [removed: | |]

| | | [removed: |] (a) | | [Indenture for Senior Debt Securities dated as of November 20, 2009 between PACCAR Financial Corp. and The Bank of New York Mellon Trust Company, N.A.](http://www.sec.gov/Archives/edgar/data/731288/000119312509239324/dex41.htm) | | S-3 | | | | | November 20, 2009 | | | [removed: | |] [added: 4.1] | | [removed: 4.1] [added: 333-163273] | | | | [removed: 333-163273] | |

| | | [removed: |] (b) | | Forms of Medium-Term Note, Series O (PACCAR Financial Corp.) | | S-3 | | | | | November 5, 2015 | | | [removed: | | | |] [4.2](http://www.sec.gov/Archives/edgar/data/731288/000119312515368457/d96921dex42.htm) and [4.3](http://www.sec.gov/Archives/edgar/data/731288/000119312515368457/d96921dex43.htm) | | [added: 333-207838] | | [removed: 333-207838] | | [added: | |]

| | | [removed: |] (c) | | Forms of Medium-Term Note, Series P (PACCAR Financial Corp.) | | S-3 | | | | | November 2, 2018 | | | [removed: | | | |] [4.2](http://www.sec.gov/Archives/edgar/data/731288/000119312518317201/d622793dex42.htm) and [4.3](http://www.sec.gov/Archives/edgar/data/731288/000119312518317201/d622793dex43.htm) | | [added: 333-228141] | | [removed: 333-228141] | | [added: | |]

| | | [removed: |] (d) | | Forms of Medium-Term Note, Series Q (PACCAR Financial Corp.) | | S-3 | | | | | November 1, 2021 | | | [removed: | | | |] [4.3](http://www.sec.gov/Archives/edgar/data/731288/000119312521315542/d403723dex43.htm) and [4.4](http://www.sec.gov/Archives/edgar/data/731288/000119312521315542/d403723dex44.htm) | | [added: 333-260663] | | [removed: 333-260663] | | [added: | |]

| | | [removed: | (e)] [added: (f)] | | [Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the [removed: Listing Particulars] [added: Information Memorandum] dated May [removed: 9, 201](http://www.sec.gov/Archives/edgar/data/75362/000156459018019160/pcar-ex4h_438.htm)8] [added: 29, 20](http://www.sec.gov/Archives/edgar/data/75362/000156459020035572/pcar-ex4h_179.htm)20] | | 10-Q | | | | | August 3, [removed: 2018 | |] [added: 2020] | | | [added: 4(h)] | | [removed: 4(h)] [added: 001-14817] | | | | [removed: 001-14817] | |

| | | [removed: | (f)] [added: (e)] | | [Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Listing Particulars dated July 4, 2019](http://www.sec.gov/Archives/edgar/data/75362/000156459019038819/pcar-ex4i_252.htm) | | 10-Q | | | | | October 30, 2019 | | | [removed: | |] [added: 4(i)] | | [removed: 4(i)] [added: 001-14817] | | | | [removed: 001-14817] | |

| | | [removed: | (g)] [added: (h)] | | [Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated [removed: May 29, 20](http://www.sec.gov/Archives/edgar/data/75362/000156459020035572/pcar-ex4h_179.htm)20] [added: July 13, 2022](http://www.sec.gov/Archives/edgar/data/75362/000156459022027473/pcar-ex4h_303.htm)] | | 10-Q | | | | | August [removed: 3, 2020 | |] [added: 2, 2022] | | | [added: 4(h)] | | [removed: 4(h)] [added: 001-14817] | | | | [removed: 001-14817] | |

| | | [removed: | (h)] [added: (g)] | | [Terms and Conditions of the Notes applicable to [removed: the](http://www.sec.gov/Archives/edgar/data/75362/000156459021039777/pcar-ex4g_63.htm)] [added: the] €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated July 15, [removed: 2021] [added: 2021](http://www.sec.gov/Archives/edgar/data/75362/000156459021039777/pcar-ex4g_63.htm)] | | 10-Q | | | | | August 2, 2021 | | | [removed: | |] [added: 4(g)] | | [removed: 4(g)] [added: 01-14817] | | | | [removed: 01-14817] | |

| | | [removed: |] (i) | | [Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934](http://www.sec.gov/Archives/edgar/data/75362/000156459020005276/pcar-ex4j_578.htm) | | 10-K | | | | | February 19, 2020 | | | [removed: | |] [added: 4(j)] | | [removed: 4(j)] [added: 001-14817] | | | | [removed: 001-14817] | |

| | | [removed: |] | | Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of the Company and its wholly owned subsidiaries are not filed because the total amount of securities authorized under any such instrument does not exceed 10 percent of the Company’s total assets. The Company will file copies of such instruments upon request of the Commission. | | | | | | | | | | | | | | | | | | [removed: | |]

| (10) | | | | [removed: |] Material Contracts: | | | | | | | | | | | | | | | | | | [removed: | |]

| | | [removed: |] (a) | | [PACCAR Inc Amended and Restated Supplemental Retirement Plan](http://www.sec.gov/Archives/edgar/data/75362/000110465909012954/a09-1261_1ex10da.htm) | | 10-K | | | | | | February 27, 2009 | | [removed: |] 10(a) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (b) | | [Amended and Restated Deferred Compensation Plan](http://www.sec.gov/Archives/edgar/data/0000075362/000119312512224972/d311298dex10b.htm) | | 10-Q | | | | | | May 10, 2012 | | [removed: |] 10(b) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (c) | | [Deferred Incentive Compensation Plan (Amended and Restated as of December 31, 2004)](http://www.sec.gov/Archives/edgar/data/75362/000110465906012138/a06-2326_1ex10db.htm) | | 10-K | | | | | | February 27, 2006 | | [removed: |] 10(b) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: | (d)] [added: (r)] | | [Second Amended and Restated PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee [removed: Directors](http://www.sec.gov/Archives/edgar/data/75362/000119312514099028/d650510ddef14a.htm#toc650510_35) | | DEF14A] [added: Directors, Form of Amended Restricted Stock Grant Agreement](http://www.sec.gov/Archives/edgar/data/75362/000119312515065702/d823556dex10u.htm)] | | [added: 10-K] | | | | [removed: March 14, 2014] | | [added: February 26, 2015] | [removed: Appendix A] | [added: 10(u)] | | | [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (e) | | [PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee Directors, Form of Deferred Restricted Stock Unit Agreement for Non-Employee Directors](http://www.sec.gov/Archives/edgar/data/0000075362/000095013407025148/v36361exv99w3.htm) | | 8-K | | | | | | December 10, 2007 | | [removed: |] 99.3 | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (f) | | [Amendment to Compensatory Arrangement with Non-Employee Directors](http://www.sec.gov/Archives/edgar/data/0000075362/000119312515065702/d823556dex10g.htm) | | 10-K | | | | | | February 26, 2015 | | [removed: |] 10(g) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (g) | | [PACCAR Inc Senior Executive Yearly Incentive Compensation Plan](http://www.sec.gov/Archives/edgar/data/75362/000156459020005276/pcar-ex10g_464.htm) | | 10-K | | | | | | February 19, 2020 | | [removed: |] 10(g) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (h) | | [PACCAR Inc Long Term Incentive [removed: Plan](http://www.sec.gov/Archives/edgar/data/75362/000156459020005276/pcar-ex10h_465.htm) | | 10-K] [added: Plan](https://www.sec.gov/Archives/edgar/data/75362/000156459023002203/pcar-ex10h_925.htm)*] | | | | | | [removed: February 19, 2020] | | | [removed: 10(h)] | | | | | | | [removed: 001-14817] | |

| | | [removed: |] (i) | | [Amendment One to PACCAR Inc Long Term Incentive Plan, Nonstatutory Stock Option Agreement and Form of Option Grant Agreement](http://www.sec.gov/Archives/edgar/data/75362/000119312513324177/d542389dex10k.htm) | | 10-Q | | | | | | August 7, 2013 | | [removed: |] 10(k) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (j) | | [PACCAR Inc Long Term Incentive Plan, 2018 Form of Restricted Stock Award Agreement](http://www.sec.gov/Archives/edgar/data/75362/000156459019003670/pcar-ex10m_938.htm) | | 10-K | | | | | | February 21, 2019 | | [removed: |] 10(m) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (k) | | [PACCAR Inc Long Term Incentive Plan, Form of Restricted Stock Unit Agreement](http://www.sec.gov/Archives/edgar/data/75362/000156459019003670/pcar-ex10n_939.htm) | | 10-K | | | | | | February 21, 2019 | | [removed: |] 10(n) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (l) | | [PACCAR Inc Savings Investment Plan, Amendment and Restatement effective September 1, 2016](http://www.sec.gov/Archives/edgar/data/75362/000119312516760179/d245955dex10q.htm) | | 10-Q | | | | | | November 4, 2016 | | [removed: |] 10(q) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (m) | | [Memorandum of Understanding, dated as of May 11, 2007, by and among PACCAR Engine Company, the State of Mississippi and certain state and local supporting governmental entities](http://www.sec.gov/Archives/edgar/data/75362/000110465907040439/a07-14152_1ex10d1.htm) | | 8-K | | | | | | May 16, 2007 | | [removed: |] 10.1 | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (n) | | [Letter Waiver Dated as of July 22, 2008 amending the Memorandum of Understanding, dated as of May 11, 2007, by and among PACCAR Engine Company, the State of Mississippi and certain state and local supporting governmental entities](http://www.sec.gov/Archives/edgar/data/75362/000110465908065948/a08-25318_1ex10do.htm) | | 10-Q | | | | | | October 27, 2008 | | [removed: |] 10(o) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (o) | | [Second Amendment to Memorandum of Understanding dated as of September 26, 2013, by and among PACCAR Engine Company, the Mississippi Development Authority and the Mississippi Major Economic Impact Authority](http://www.sec.gov/Archives/edgar/data/75362/000119312513432974/d586294dex10u.htm) | | 10-Q | | | | | | November 7, 2013 | | [removed: |] 10(u) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (p) | | [Third Amendment to Memorandum of Understanding dated as of November 12, 2019, by and among PACCAR Engine Company, the Mississippi Development Authority and the Mississippi Major Economic Impact Authority](http://www.sec.gov/Archives/edgar/data/75362/000156459020005276/pcar-ex10r_693.htm) | | 10-K | | | | | | February 19, 2020 | | [removed: |] 10(r) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: |] (q) | | [Second Amended and Restated PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee Directors, Form of Amended Deferred Restricted Stock Unit Grant Agreement](http://www.sec.gov/Archives/edgar/data/75362/000119312515065702/d823556dex10t.htm) | | 10-K | | | | | | February 26, 2015 | | [removed: |] 10(t) | | | [removed: |] [added: 001-14817] | | | [removed: 001-14817] | |

| | | [removed: | (r)] [added: (d)] | | [Second Amended and Restated PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee [removed: Directors, Form of Amended Restricted Stock Grant Agreement](http://www.sec.gov/Archives/edgar/data/75362/000119312515065702/d823556dex10u.htm) | | 10-K] [added: Directors](https://www.sec.gov/Archives/edgar/data/75362/000156459023002203/pcar-ex10d_926.htm)*] | | | | | | [removed: February 26, 2015] | | | [removed: 10(u)] | | | | | | | [removed: 001-14817] | |

| (21) | | | | [removed: |] [Subsidiaries of the [removed: registrant*](https://www.sec.gov/Archives/edgar/data/75362/000156459022006237/pcar-ex21_10.htm) | |] [added: registrant*](https://www.sec.gov/Archives/edgar/data/75362/000156459023002203/pcar-ex21_6.htm)] | | | | | | | | | | | | | | | | | |

— December 31, 2022 and 2021

— Years Ended December 31, 2022, 2021 and 2020

— Years Ended December 31, 2022, 2021 and 2020

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| | | | | [Certificate of Amendment of the Amended and Restated Certificate of Incorporation of PACCAR Inc](http://www.sec.gov/Archives/edgar/data/75362/000119312522134022/d352167dex3.htm) | | 8-K | | | | | April 29, 2022 | | | 3(i) | | 001-14817 | | | | | |

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