Paccar: Accounting Question (Cash Flows)

Hi all,

This question might be a bit overly specific for these forums but I've been trying to crack it and just couldn't come up with the answer.

I've been interested in Paccar recently and been looking through it's 10k's and trying to get a handle on its cash flows. The fact that it has a financing company/leasing business in addition to manufacturing complicates things a little. One of the items on the Cash Flow Statement reads "Acquisitions of Equipment for Operating Leases" (https://www.sec.gov/Archives/edgar/data/75362/000156459018002675/pcar-10k_20171231.htm#ITEM_8_FINANCIAL_STATEMENTS_SUPPLEMENTAR - pg. 42)

I was wondering how this cash outflow works for Paccar specifically? Is this recorded as a "sale" , thus increasing revenue and COGS but is non-cash since its an internal acquisition? or am I missing something where cash is actually flowing out of the company?

Again, apologies if this isn't the right place but I've been trying to figure this out for a bit and just couldn't get to the answer. Any help would be appreciated.

Thanks,

Nick
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