
I. BORROWINGS AND CREDIT ARRANGEMENTS Truck, Parts and Other long-term debt at December 31, 2013 consisted of $150.0 of notes with an effective interest rate of 6.9% which was repaid upon maturity in February 2014. Financial Services borrowings include the following:
	2014					2013
At December 31,	EFFECTIVE RATE			BORROWINGS		EFFECTIVE RATE			BORROWINGS
Commercial paper		.8	%	$	2,506.0		1.2	%	$	2,266.8
Medium-term bank loans		5.0	%		135.9		5.0	%		242.1

					2,641.9					2,508.9
Term notes		1.5	%		5,588.7		1.8	%		5,765.3

		1.3	%	$	8,230.6		1.7	%	$	8,274.2

The commercial paper and term notes of $8,094.7 and $8,032.1 at December 31, 2014 and 2013 include a net effect of fair value hedges and unamortized discounts of $(1.0) and $1.5, respectively. The effective rate is the weighted average rate as of December 31, 2014 and 2013 and includes the effects of interest-rate contracts.

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


Beginning January 1, 2015	COMMERCIAL PAPER		BANK LOANS		TERM NOTES		TOTAL
2015	$	2,506.9	$	20.4	$	1,601.9	$	4,129.2
2016				34.0		1,612.9		1,646.9
2017				23.7		1,793.8		1,817.5
2018				37.4		280.2		317.6
2019				20.4		300.0		320.4

	$	2,506.9	$	135.9	$	5,588.8	$	8,231.6

Interest paid on borrowings was $136.3, $149.3 and $149.9 in 2014, 2013 and 2012, respectively. For the years ended December 31, 2014, 2013 and 2012, the Company capitalized interest on borrowings of $1.3, $10.3 and $10.3, respectively, in Truck, Parts and Other.

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 Inc, PACCAR Financial Corp. (PFC), PACCAR Financial Europe and PACCAR Financial Mexico.

In December 2011, PACCAR Inc filed a shelf registration under the Securities Act of 1933; the registration expired in the fourth quarter of 2014. Upon maturity in February 2014, $500.0 million of medium-term notes, of which $150.0 million was manufacturing debt, were repaid in full.

In November 2012, the Company’s U.S. finance subsidiary, PFC, filed a shelf registration under the Securities Act of 1933 effective for a three year period. The total amount of medium-term notes outstanding for PFC as of December 31, 2014 was $4,150.0. The registration expires in November 2015 and does not limit the principal amount of debt securities that may be issued during that period.

At December 31, 2014, the Company’s European finance subsidiary, PACCAR Financial Europe, had €366.9 available for issuance under a €1,500.0 medium-term note program registered with the London Stock Exchange. The program was renewed in the second quarter of 2014 and is renewable annually through the filing of a new prospectus.

In April 2011, PACCAR Financial Mexico registered a 10,000.0 peso medium-term note and commercial paper program with the Comision Nacional Bancaria y de Valores. The registration expires in 2016 and limits the amount of commercial paper (up to one year) to 5,000.0 pesos. At December 31, 2014, 8,000.0 pesos remained available for issuance.

The Company has line of credit arrangements of $3,503.9, of which $3,368.0 were unused at December 31, 2014. Included in these arrangements are $3,000.0 of syndicated bank facilities, of which $1,000.0 matures in June 2015, $1,000.0 matures in June 2018 and $1,000.0 matures in June 2019. The Company intends to replace these credit facilities as they expire 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 syndicated bank facilities for the year ended December 31, 2014.