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## CONSOLIDATED S TATEMENTS OF C OMPREHENSIVE INC OME 

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See notes to consolidated financial statements. 

## NOTES TO C ONSOLID ATED FINANC IAL STATEMENTS 

December 31, 2011, 2010 and 2009 (currencies in millions) 

## A. SIGNIFICANT ACCOUNTING POLICIES 

Description of Operations: PACCAR Inc (the Company or PACCAR) is a multinational company operating in two principal segments: (1) the design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks and related aftermarket parts and (2) finance and leasing products and services provided to customers and dealers. PACCAR’s sales and revenues are derived primarily from North America and Europe. The Company also operates in Australia and sells trucks and parts to customers in Asia, Africa and South America. 

Principles of Consolidation:  The consolidated financial statements include the accounts of the Company and its wholly owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. 

Use of Estimates:  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 

