I. BORROWINGS AND CREDIT ARRANGEMENTS

Financial Services borrowings include the following:


	2015					2014
At December 31,	EFFECTIVE RATE			BORROWINGS		EFFECTIVE RATE			BORROWINGS
Commercial paper		.6	%	$	2,620.4		.8	%	$	2,506.0
Bank loans		4.8	%		176.1		5.0	%		135.9

					2,796.5					2,641.9
Term notes		1.4	%		5,795.0		1.5	%		5,588.7

		1.2	%	$	8,591.5		1.3	%	$	8,230.6


The commercial paper and term notes of $8,415.4 and $8,094.7 at December 31, 2015 and 2014 include a net effect of fair value hedges and unamortized discounts of $(1.1) and $(1.0), respectively. The effective rate is the weighted average rate as of December 31, 2015 and 2014 and includes the effects of interest-rate contracts. The annual maturities of the Financial Services borrowings are as follows:

Beginning January 1, 2016	COMMERCIAL PAPER			BANK LOANS		TERM NOTES			TOTAL
2016	$	2,621.2		$	39.5	$	1,575.9		$	4,236.6
2017					20.3		2,229.9			2,250.2
2018					46.5		1,356.2			1,402.7
2019					32.0		579.0			611.0
2020					37.8		54.3			92.1

	$	2,621.2		$	176.1	$	5,795.3		$	8,592.6

Interest paid on borrowings was $101.3, $136.3 and $149.3 in 2015, 2014 and 2013, respectively. For the years ended December 31, 2015, 2014 and 2013, the Company capitalized interest on borrowings of nil, $1.3 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 Financial Corp. (PFC), PACCAR Financial Europe and PACCAR Financial Mexico.

In November 2015, 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, 2015 was $4,400.0. The registration expires in November 2018 and does not limit the principal amount of debt securities that may be issued during that period.

As of December 31, 2015, the Company’s European finance subsidiary, PACCAR Financial Europe, had €269.0 available for issuance under a €1,500.0 medium-term note program listed on the Professional Securities Market of the London Stock Exchange. This program replaced an expiring program in the second quarter of 2015 and is renewable annually through the filing of new listing particulars.

In April 2011, PACCAR Financial Mexico (PFM) 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 April 2016 and limits the amount of commercial paper (up to one year) to 5,000.0 pesos. At December 31, 2015, 8,035.0 pesos remained available for issuance. PFM intends to file a new program in April 2016.

The Company has line of credit arrangements of $3,435.0, of which $3,256.4 were unused at December 31, 2015. Included in these arrangements are $3,000.0 of syndicated bank facilities, of which $1,000.0 expires in June 2016, $1,000.0 expires in June 2019 and $1,000.0 expires in June 2020. 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 syndicated bank facilities for the year ended December 31, 2015.