Paccar Financial 10-Q 2 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Trading Symbol	ck0000731288
Entity Registrant Name	PACCAR FINANCIAL CORP
Entity Central Index Key	0000731288
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		145,000
Entity File Number	001-11677
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-6029712
Entity Address, Address Line One	777 – 106th Ave. N.E.
Entity Address, City or Town	Bellevue
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98004
City Area Code	425
Local Phone Number	468-7100
Title of 12(b) Security	Series P Medium-Term Notes $300.0 Million Due May 11, 2026
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023		Sep. 30, 2022
Income Statement [Abstract]
Interest and fee income	$ 125.5	$ 80.9	$ 338.2		$ 225.5
Operating lease and rental revenues	54.9	75.7	186.8		232.6
Used truck sales and other revenues	3.8	3.8	15.5		15.2
TOTAL INTEREST AND OTHER REVENUES	184.2	160.4	540.5		473.3
Interest and other borrowing costs	74.9	35.2	192.1		92.5
Depreciation and other rental expenses	47.1	51.3	138.8		137.5
Cost of used truck sales and other expenses	2.6	1.7	11.2		7.7
Selling, general and administrative expenses	16.3	15.5	47.9		45.6
Provision for losses on receivables	0.8	(1.2)	2.2		(3.6)
TOTAL EXPENSES	141.7	102.5	392.2		279.7
INCOME BEFORE INCOME TAXES	42.5	57.9	148.3		193.6
Income taxes	10.3	14.4	36.7		47.7
NET INCOME	32.2	43.5	111.6		145.9
COMPREHENSIVE INCOME	34.3	44.7	112.2		168.8
RETAINED EARNINGS AT BEGINNING OF PERIOD	1,643	1,719.2	1,813.6	[1]	1,716.8
RETAINED EARNINGS AT END OF PERIOD	$ 1,675.2	$ 1,762.7	$ 1,675.2		$ 1,762.7
[1] The December 31, 2022 balance sheet has been derived from audited financial statements.

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash	$ 42.6	$ 48.8	[1]
Finance and other receivables, net of allowance for losses (2023 - $61.0 and 2022 - $61.7)	8,645.1	7,518.4	[1]
Due from PACCAR and affiliates	$ 1,634.3	$ 1,905.3	[1]
Other Receivable, after Allowance for Credit Loss, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Equipment on operating leases, net of accumulated depreciation (2023 - $441.9 and 2022 - $625.9)	$ 591.8	$ 854	[1]
Other assets	382.8	223.9	[1]
TOTAL ASSETS	11,296.6	10,550.4	[1]
LIABILITIES
Accounts payable, accrued expenses and other	702.5	528.3	[1]
Due to PACCAR and affiliates	$ 61.1	$ 21.8	[1]
Other Liability, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Commercial paper	$ 2,664.6	$ 1,657.7	[1]
Medium-term notes	5,469.4	5,814.5	[1]
Deferred taxes and other liabilities	489.1	486	[1]
TOTAL LIABILITIES	9,386.7	8,508.3	[1]
STOCKHOLDER'S EQUITY
Preferred stock, par value $100 per share, 6% noncumulative and nonvoting, 450,000 shares authorized, 310,000 shares issued and outstanding	31	31	[1]
Common stock, par value $100 per share, 200,000 shares authorized, 145,000 shares issued and outstanding	14.5	14.5	[1]
Additional paid-in capital	170.2	164.6	[1]
Retained earnings	1,675.2	1,813.6	[1]
Accumulated other comprehensive income	19	18.4	[1]
TOTAL STOCKHOLDER'S EQUITY	1,909.9	2,042.1	[1]
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 11,296.6	$ 10,550.4	[1]
[1] The December 31, 2022 balance sheet has been derived from audited financial statements.

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Finance and other receivables, allowance for losses	$ 61	$ 61.7
Equipment on operating leases, accumulated depreciation	$ 441.9	$ 625.9
Preferred stock, par value	$ 100	$ 100
Preferred stock, noncumulative and nonvoting	6%	6%
Preferred stock, shares authorized	450,000	450,000
Preferred stock, shares issued	310,000	310,000
Preferred stock, shares outstanding	310,000	310,000
Common stock, par value	$ 100	$ 100
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	145,000	145,000
Common stock, shares outstanding	145,000	145,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
OPERATING ACTIVITIES
Net income	$ 111.6	$ 145.9
Items included in net income not affecting cash:
Depreciation and amortization	134	128.5
Provision for losses on receivables	2.2	(3.6)
Deferred taxes	13.4	(0.1)
Administrative fees for services from PACCAR	5.6	7.3
Change in tax-related balances with PACCAR	8	34.3
Increase in payables and other	148.9	157
NET CASH PROVIDED BY OPERATING ACTIVITIES	423.7	469.3
INVESTING ACTIVITIES
Finance and other receivables originated	(2,357.5)	(1,976)
Collections on finance and other receivables	1,838.9	1,790.9
Net increase in wholesale receivables	(623.1)	(248.7)
Loans to PACCAR and affiliates	(310)	(477)
Collections on loans from PACCAR and affiliates	545	350
Net decrease (increase) in other receivables to PACCAR and affiliates	33.5	(53)
Acquisitions of equipment for operating leases	(47.5)	(180.8)
Proceeds from disposals of equipment	129.2	156
Other, net	(44.2)	(96.6)
NET CASH USED IN INVESTING ACTIVITIES	(835.7)	(735.2)
FINANCING ACTIVITIES
Net increase in short-term commercial paper	1,011.7	198.4
Proceeds from medium-term notes and other commercial paper	1,394.1	1,793.3
Payments of medium-term notes and other commercial paper	(1,750)	(1,600)
Dividends paid	(250)	(100)
NET CASH PROVIDED BY FINANCING ACTIVITIES	405.8	291.7
NET (DECREASE) INCREASE IN CASH	(6.2)	25.8
CASH AT BEGINNING OF PERIOD	48.8	22.1
CASH AT END OF PERIOD	$ 42.6	$ 47.9

STATEMENTS OF STOCKHOLDER'S EQU

STATEMENTS OF STOCKHOLDER'S EQUITY - USD ($) $ in Millions	Total		Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income
Beginning balance at Dec. 31, 2021			$ 31	$ 14.5	$ 156	$ 1,716.8	$ (1.9)
Investments from PACCAR					7.3
Net income	$ 145.9					145.9
Dividends paid						(100)
Net unrealized gain (loss)	22.9						22.9
Ending balance at Sep. 30, 2022	1,992.5		31	14.5	163.3	1,762.7	21
Beginning balance at Jun. 30, 2022			31	14.5	162.2	1,719.2	19.8
Investments from PACCAR					1.1
Net income	43.5					43.5
Net unrealized gain (loss)	1.2						1.2
Ending balance at Sep. 30, 2022	1,992.5		31	14.5	163.3	1,762.7	21
Beginning balance at Dec. 31, 2022	2,042.1	[1]	31	14.5	164.6	1,813.6	18.4
Investments from PACCAR					5.6
Net income	111.6					111.6
Dividends paid						(250)
Net unrealized gain (loss)	0.6						0.6
Ending balance at Sep. 30, 2023	1,909.9		31	14.5	170.2	1,675.2	19
Beginning balance at Jun. 30, 2023			31	14.5	169.4	1,643	16.9
Investments from PACCAR					0.8
Net income	32.2					32.2
Net unrealized gain (loss)	2.1						2.1
Ending balance at Sep. 30, 2023	$ 1,909.9		$ 31	$ 14.5	$ 170.2	$ 1,675.2	$ 19
[1] The December 31, 2022 balance sheet has been derived from audited financial statements.

STATEMENTS OF STOCKHOLDER'S E_2

STATEMENTS OF STOCKHOLDER'S EQUITY (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Preferred stock, par value	$ 100	$ 100	$ 100
Common stock, par value	$ 100	$ 100	$ 100

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 32.2	$ 43.5	$ 111.6	$ 145.9

Insider Trading Arrangements

Insider Trading Arrangements	9 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	NOTE A – Basis of Presentation PACCAR Financial Corp. (the “Company”) is a wholly owned subsidiary of PACCAR Inc (“PACCAR”). The Company primarily provides financing of PACCAR manufactured trucks and related equipment sold by authorized dealers. The Company also finances dealer inventories of transportation equipment and franchises Kenworth and Peterbilt dealerships to engage in full-service and finance leasing. The operations of the Company are fundamentally affected by its relationship with PACCAR. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the financial statements and footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. New Accounting Pronouncement: The Company adopted the following standard on January 1, 2023 , which had no material impact on the Company’s financial statements. STANDARD DESCRIPTION 2022-02 Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures

Finance and Other Receivables

Finance and Other Receivables	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Finance and Other Receivables	NOTE B – Finance and Other Receivables The Company’s finance and other receivables include the following: September 30 December 31 2023 2022 Retail loans $ 4,915.6 $ 4,627.0 Retail financing leases 1,625.1 1,433.5 Dealer wholesale financing 1,716.3 1,093.2 Dealer master notes 394.9 377.0 Operating lease receivables and other 54.2 49.4 8,706.1 7,580.1 Less allowance for credit losses: Loans and leases ( 59.0 ) ( 59.7 ) Dealer wholesale financing ( .9 ) ( 1.0 ) Operating lease receivables and other ( 1.1 ) ( 1.0 ) $ 8,645.1 $ 7,518.4 Included in Finance and other receivables, net of allowance for credit losses, on the Balance Sheets is accrued interest receivable, net of allowance for credit losses, of $ 25.2 and $ 19.3 as of September 30, 2023 and December 31, 2022, respectively. Interest income recognized on finance leases was $ 20.4 and $ 55.8 for the three and nine months ended September 30, 2023, respectively, compared to $ 14.6 and $ 43.5 for the same periods in 2022. Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at September 30, 2023 or December 31, 2022. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Allowance for Credit Losses The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases in the normal course of its operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. On average, commercial and other modifications extended contractual terms by approximately two months in 2023 and three months in 2022, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2023 and December 31, 2022. The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and, in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over 36 to 60 months , and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves. The Company individually evaluates certain finance receivables for expected credit losses. Finance receivables that are evaluated individually consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. In general, finance receivables that are 90 days past due are placed on non-accrual status. Finance receivables on non-accrual status which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments. Individually evaluated receivables on non-accrual status are generally considered collateral dependent. Large balance retail and all wholesale receivables on non-accrual status are individually evaluated to determine the appropriate reserve for losses. The determination of reserves for large balance receivables on non-accrual status considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s amortized cost basis, no reserve is recorded. Small balance receivables on non-accrual status with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below. The Company evaluates finance receivables that are not individually evaluated and share similar risk characteristics on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss information provides relevant information of expected credit losses. The historical data used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse. The Company has developed a range of loss estimates of its portfolio based on historical experience, taking into account loss frequency and severity in both strong and weak truck market conditions. A projection is made of the range of estimated credit losses inherent in the portfolio from which an amount is determined based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and market in which the Company conducts business. The Company utilizes economic forecasts from third party sources and determines expected losses based on historical experience under similar market conditions. After determining the appropriate level of the allowance for credit losses, a provision for losses on finance receivables is charged to income as necessary to reflect management’s estimate of expected credit losses, net of recoveries, inherent in the portfolio. In determining the fair value of the collateral, the Company uses a pricing matrix and categorizes the fair value as Level 2 in the hierarchy of fair value measurement. The pricing matrix is reviewed quarterly and updated as appropriate. The pricing matrix considers the make, model and year of the equipment as well as recent sales prices of comparable equipment sold individually, which is the lowest unit of account, through wholesale channels to the Company’s dealers (principal market). The fair value of the collateral also considers the overall condition of the equipment. Accounts are charged off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost basis. For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating five or more trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk. The allowance for credit losses is summarized as follows: 2023 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 1.0 $ 1.8 $ 57.9 $ 1.0 $ 61.7 Provision for losses ( .1 ) ( .6 ) 2.9 2.2 Charge-offs ( 3.8 ) ( 3.8 ) Recoveries .8 .1 .9 Balance at September 30 $ .9 $ 1.2 $ 57.8 $ 1.1 $ 61.0 2022 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 1.0 $ 6.5 $ 57.1 $ 1.1 $ 65.7 Provision for losses .1 ( 3.0 ) ( .7 ) ( 3.6 ) Charge-offs ( 1.1 ) ( .1 ) ( 1.2 ) Recoveries 2.0 2.0 Balance at September 30 $ 1.1 $ 3.5 $ 57.3 $ 1.0 $ 62.9 * Operating lease and other trade receivables. Credit Quality The Company's customers are principally concentrated in the transportation industry in the United States. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 10 % of the total portfolio assets as of September 30, 2023 or December 31, 2022. The Company retains as collateral a security interest in the related equipment. At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss. The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high-risk. Watch accounts are not collateral dependent. At-risk accounts are collateral dependent, including accounts over 90 days past due and other accounts on non-accrual status. The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class and current period gross charge-offs of the Company’s finance receivables by year of origination and portfolio class. At September 30, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Amortized Cost Basis: Dealer: Wholesale: Performing $ 1,715.2 $ 1,715.2 Watch 1.1 1.1 $ 1,716.3 $ 1,716.3 Retail: Performing $ 164.3 $ 485.6 $ 488.3 $ 289.8 $ 147.0 $ 165.0 $ 129.5 $ 1,869.5 $ 164.3 $ 485.6 $ 488.3 $ 289.8 $ 147.0 $ 165.0 $ 129.5 $ 1,869.5 Total Dealer $ 1,880.6 $ 485.6 $ 488.3 $ 289.8 $ 147.0 $ 165.0 $ 129.5 $ 3,585.8 Customer Retail: Fleet: Performing $ 1,537.0 $ 1,361.9 $ 818.3 $ 522.4 $ 199.8 $ 56.1 $ 4,495.5 Watch .1 2.4 1.3 .2 .3 .9 5.2 At-risk 1.0 3.3 4.0 2.0 11.0 .2 21.5 $ 1,538.1 $ 1,367.6 $ 823.6 $ 524.6 $ 211.1 $ 57.2 $ 4,522.2 Owner/Operator: Performing $ 116.2 $ 155.0 $ 149.7 $ 79.7 $ 31.4 $ 6.6 $ 538.6 Watch .1 .5 .7 .3 .1 1.7 At-risk .9 1.7 .5 .5 3.6 $ 116.3 $ 156.4 $ 152.1 $ 80.5 $ 31.9 $ 6.7 $ 543.9 Total Customer Retail $ 1,654.4 $ 1,524.0 $ 975.7 $ 605.1 $ 243.0 $ 63.9 $ 5,066.1 Total $ 1,880.6 $ 2,140.0 $ 2,012.3 $ 1,265.5 $ 752.1 $ 408.0 $ 193.4 $ 8,651.9 At September 30, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Gross Charge-Offs: Customer Retail: Fleet $ 1.6 $ .4 $ .1 $ .1 $ 2.2 Owner/Operator $ .1 .6 .5 .2 $ .2 1.6 Total $ .1 $ 2.2 $ .9 $ .3 $ .1 $ .2 $ 3.8 At December 31, 2022 Revolving Loans 2022 2021 2020 2019 2018 Prior Total Amortized Cost Basis: Dealer: Wholesale: Performing $ 1,087.0 $ 1,087.0 Watch 6.2 6.2 $ 1,093.2 $ 1,093.2 Retail: Performing $ 206.2 $ 546.2 $ 315.5 $ 182.7 $ 214.9 $ 97.5 $ 105.0 $ 1,668.0 $ 206.2 $ 546.2 $ 315.5 $ 182.7 $ 214.9 $ 97.5 $ 105.0 $ 1,668.0 Total Dealer $ 1,299.4 $ 546.2 $ 315.5 $ 182.7 $ 214.9 $ 97.5 $ 105.0 $ 2,761.2 Customer Retail: Fleet: Performing $ 1,698.2 $ 1,130.2 $ 751.7 $ 382.6 $ 113.7 $ 38.6 $ 4,115.0 Watch 2.9 1.7 .3 2.9 2.0 .6 10.4 At-risk 1.6 6.0 1.7 10.4 4.1 .4 24.2 $ 1,702.7 $ 1,137.9 $ 753.7 $ 395.9 $ 119.8 $ 39.6 $ 4,149.6 Owner/Operator: Performing $ 199.2 $ 216.8 $ 124.7 $ 56.5 $ 17.9 $ 2.7 $ 617.8 Watch .5 .4 .1 1.0 At-risk .4 .3 .1 .2 .1 1.1 $ 200.1 $ 217.5 $ 124.9 $ 56.7 $ 18.0 $ 2.7 $ 619.9 Total Customer Retail $ 1,902.8 $ 1,355.4 $ 878.6 $ 452.6 $ 137.8 $ 42.3 $ 4,769.5 Total $ 1,299.4 $ 2,449.0 $ 1,670.9 $ 1,061.3 $ 667.5 $ 235.3 $ 147.3 $ 7,530.7 The tables below summarize the amortized cost basis of the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes. Dealer Customer Retail Owner/ At September 30, 2023 Wholesale Retail Fleet Operator Total Current and up to 30 days past due $ 1,716.3 $ 1,869.5 $ 4,500.1 $ 539.4 $ 8,625.3 31 – 60 days past due 13.4 2.8 16.2 Greater than 60 days past due 8.7 1.7 10.4 $ 1,716.3 $ 1,869.5 $ 4,522.2 $ 543.9 $ 8,651.9 Dealer Customer Retail Owner/ At December 31, 2022 Wholesale Retail Fleet Operator Total Current and up to 30 days past due $ 1,093.2 $ 1,668.0 $ 4,143.7 $ 618.3 $ 7,523.2 31 – 60 days past due 1.1 1.4 2.5 Greater than 60 days past due 4.8 .2 5.0 $ 1,093.2 $ 1,668.0 $ 4,149.6 $ 619.9 $ 7,530.7 The amortized cost basis of finance receivables that are on non-accrual status was as follows: Dealer Customer Retail Owner/ At September 30, 2023 Wholesale Retail Fleet Operator Total Amortized cost basis with a specific reserve $ 4.7 $ 3.1 $ 7.8 Amortized cost basis with no specific reserve 16.8 .5 17.3 $ 21.5 $ 3.6 $ 25.1 Dealer Customer Retail Owner/ At December 31, 2022 Wholesale Retail Fleet Operator Total Amortized cost basis with a specific reserve $ 2.0 $ 1.1 $ 3.1 Amortized cost basis with no specific reserve 6.1 6.1 $ 8.1 $ 1.1 $ 9.2 Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows: Three Months Ended Nine Months Ended September 30 September 30 2023 2022 2023 2022 Fleet $ .1 $ .1 $ .3 $ .5 Owner/Operator .1 $ .1 $ .1 $ .4 $ .5 Customers Experiencing Financial Difficulty The Company adopted ASU 2022-02 on January 1, 2023. The amortized cost basis of finance receivables that were modified with customers experiencing financial difficulty was $ 1.2 . These modifications provided only insignificant term extensions. All of the finance receivables modified with customers experiencing financial difficulty are current. Troubled Debt Restructuring Disclosures Prior to Adoption of ASU 2022-02 Prior to the adoption of ASU 2022-02, when considering whether to modify customer accounts for credit reasons, the Company evaluated the creditworthiness of the customers and modified those accounts that the Company considered likely to perform under the modified terms. When the Company modified a loan or finance lease for credit reasons and granted a concession, the modification was classified as a troubled debt restructuring (TDR). The Company did not typically grant credit modifications for customers that did not meet minimum underwriting standards since the Company normally repossesses the financed equipment in those circumstances. When such modifications did occur, they were considered TDRs. The balance of TDRs was $ 13.3 and $ 15.4 at December 31, 2022 and September 30, 2022, respectively. There were no finance receivables modified as TDRs during the nine months ended September 30, 2022. Repossessions When the Company determines that a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating lease. The Company records the vehicles as used truck inventory included in Other assets on the Balance Sheets. The balance of repossessed units was $ 7.6 at September 30, 2023 and $ 2.3 at December 31, 2022. Proceeds from sales of repossessed assets were $ 9.1 and $ 5.6 for the nine months ended September 30, 2023 and 2022, respectively. These amounts are included in Proceeds from disposals of equipment on the Statements of Cash Flows. Write-downs of repossessed equipment under operating leases are recorded as impairments and included in Depreciation and other rental expenses on the Statements of Comprehensive Income and Retained Earnings.

Transactions with PACCAR and Af

Transactions with PACCAR and Affiliates	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Transactions with PACCAR and Affiliates	NOTE C – Transactions with PACCAR and Affiliates The Company and PACCAR are parties to a Support Agreement that obligates PACCAR to provide, when required, financial assistance to the Company to ensure that the Company maintains a ratio of earnings to fixed charges (as defined in the Support Agreement) of at least 1.25 to 1 for any fiscal year. The required ratio for the nine months ended September 30, 2023 and full year 2022 was met without assistance. The Support Agreement also requires PACCAR to own, directly or indirectly, all outstanding voting stock of the Company. Periodically, the Company makes loans to, borrows from and has intercompany transactions with PACCAR. In addition, the Company periodically loans funds to certain foreign finance and leasing affiliates of PACCAR. These affiliates have Support Agreements with PACCAR, similar to the Company’s Support Agreement with PACCAR. The foreign affiliates operate in the United Kingdom, the Netherlands, Mexico, Canada, Australia and Brasil. Loans to these foreign affiliates during 2023 and 2022 were denominated in United States dollars. The foreign affiliates primarily provide financing and leasing of PACCAR manufactured trucks and related equipment sold through the DAF, Kenworth and Peterbilt independent dealer networks in Europe, Mexico, Canada, Australia and Brasil. The Company will not make loans to the foreign affiliates in excess of the equivalent of $ 750.0 U.S. dollars, unless the amount in excess of such limit is guaranteed by PACCAR. The Company periodically reviews the funding alternatives for these affiliates, and these limits may be revised in the future. Amounts outstanding at September 30, 2023 and December 31, 2022, including balances with foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada, Australia and Brasil, are summarized below: September 30 December 31 2023 2022 Due from PACCAR and affiliates Loans due from PACCAR $ 972.5 $ 1,261.0 Loans due from foreign finance affiliates 647.0 627.0 Tax-related receivable due from PACCAR 4.4 Receivables 14.8 12.9 $ 1,634.3 $ 1,905.3 Due to PACCAR and affiliates Tax-related payable due to PACCAR $ 3.6 Payables 57.5 $ 21.8 $ 61.1 $ 21.8 The Company is included in the consolidated federal income tax return of PACCAR. The tax-related payable due to PACCAR and the tax-related receivable due from PACCAR represent the related tax provision or benefit to be settled with PACCAR. PACCAR charges the Company for certain administrative services it provides. These costs were charged to the Company based upon the Company’s specific use of the services and PACCAR’s cost. The Company’s principal office is located in the corporate headquarters building of PACCAR (owned by PACCAR). The Company also leases office space from five facilities leased by PACCAR. Lease payments for the use of these facilities are included in the above-mentioned administrative services charged by PACCAR. The Company’s employees and PACCAR employees are covered by a defined benefit pension plan sponsored by PACCAR. The assets and liabilities of the plan are reflected on the balance sheet of PACCAR. PACCAR contributes to the plan and allocates the expenses to the Company based principally on the number of eligible plan participants. Expenses for the defined benefit pension plan are included in Selling, general and administrative expenses. The Company’s employees and PACCAR employees are also covered by a defined contribution plan sponsored by PACCAR. Expenses incurred by the Company for the defined contribution plan benefits are based on the actual contribution made on behalf of the participating employees and are included in Selling, general and administrative expenses.

Stockholder's Equity

Stockholder's Equity	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Stockholder's Equity	NOTE D – Stockholder’s Equity Preferred Stock The Company’s Articles of Incorporation provide that the 6 % noncumulative, nonvoting preferred stock ( 100 % owned by PACCAR) is redeemable only at the option of the Company’s Board of Directors. Comprehensive Income The components of comprehensive income are as follows: Three Months Ended Nine Months Ended September 30 September 30 2023 2022 2023 2022 Net income $ 32.2 $ 43.5 $ 111.6 $ 145.9 Other comprehensive income Derivative contracts increase 2.1 1.2 .6 22.9 Total comprehensive income $ 34.3 $ 44.7 $ 112.2 $ 168.8 Accumulated Other Comprehensive Income Accumulated other comprehensive income (AOCI) of $ 19.0 and $ 18.4 at September 30, 2023 and December 31, 2022, respectively, is comprised of the unrealized net gain on derivative contracts, net of taxes. Changes in and reclassifications out of AOCI during the periods are as follows: Three Months Ended Nine Months Ended September 30 September 30 2023 2022 2023 2022 Balance at beginning of period $ 16.9 $ 19.8 $ 18.4 $ ( 1.9 ) Amounts recorded in AOCI Unrealized (loss) gain on derivative contracts ( .8 ) .6 1.5 1.8 Income tax effect .2 ( .1 ) ( .4 ) ( .4 ) Amounts reclassified out of AOCI Interest and other borrowing costs 3.6 1.0 ( .7 ) 28.6 Income tax effect ( .9 ) ( .3 ) .2 ( 7.1 ) Net other comprehensive income 2.1 1.2 .6 22.9 Balance at end of period $ 19.0 $ 21.0 $ 19.0 $ 21.0

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE E – Fair Value Measurements Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below: Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment. Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. Assets and Liabilities Subject to Non-recurring and Recurring Fair Value Measurement Used trucks held for sale are measured on a non-recurring basis. Derivative contracts are measured on a recurring basis. The Company’s assets and liabilities subject to fair value measurements are as follows: September 30 December 31 Level 2 2023 2022 Assets: Used trucks held for sale $ 14.5 $ .2 Derivative contracts 6.8 4.0 Liabilities: Derivative contracts $ 5.3 $ 19.7 The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to non-recurring and recurring fair value measurements: Used Trucks Held for Sale: The carrying amount of used trucks held for sale is written down as necessary to reflect the fair value less costs to sell. The Company determines the fair value of used trucks from a pricing matrix, which is based on the market approach. The significant observable inputs into the valuation model are recent sales prices of comparable units sold individually, which is the lowest unit of account, and the condition of the vehicles. Used truck impairments related to units held at September 30, 2023 and 2022 were $ 4.7 and nil during the first nine months of 2023 and 2022, respectively. These assets, which are shown in the above table when they are written down to fair value less costs to sell, are categorized as Level 2 and are included in Other assets on the Balance Sheets. Derivative Financial Instruments: The Company’s derivative financial instruments consist of interest-rate swaps and are carried at fair value. These derivative contracts are traded over the counter and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves and credit default swap spreads. These contracts are categorized as Level 2 and are included in Other assets and Accounts payable, accrued expenses and other on the Balance Sheets. Fair Value Disclosure of Other Financial Instruments For financial instruments that are not recognized at fair value, the Company uses the following methods and assumptions to determine the fair value. These instruments are categorized as Level 2, except cash which is categorized as Level 1 and fixed rate loans which are categorized as Level 3. Cash: Carrying amounts approximate fair value. Net Receivables: For floating rate loans, dealer wholesale financings and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on assumptions regarding credit and liquidity risks to approximate current rates for comparable loans. Finance lease receivables and related allowance for credit losses have been excluded from the accompanying table. Commercial Paper and Medium-Term Notes: The carrying amounts of the Company’s commercial paper and variable medium-term notes approximate fair value. For fixed rate debt, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable debt. The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows: September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Amount Value Amount Value Assets: Due from PACCAR $ 886.0 $ 852.5 $ 1,101.0 $ 1,048.2 Due from foreign finance affiliates 534.0 503.7 554.0 516.6 Fixed rate loans 5,149.5 4,998.8 4,779.4 4,566.4 Liabilities: Fixed rate debt $ 5,481.7 $ 5,287.3 $ 5,826.1 $ 5,559.0

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	NOTE F – Derivative Financial Instruments As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest-rate risk. Certain derivative instruments designated as either cash flow hedges or fair value hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedged instruments. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $ 6.8 at September 30, 2023. The Company assesses hedges at inception and on an ongoing basis to determine if the designated derivatives are highly effective in offsetting changes in fair values or cash flows of the hedged items. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in operating activities in the Statements of Cash Flows. Interest-rate contracts involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency. The Company is exposed to interest-rate risk caused by market volatility as a result of its borrowing activities. The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings. Net amounts paid or received are reflected as adjustments to interest expense. At September 30, 2023, the notional amount of these contracts totaled $ 388.6 with amounts expiring over the next 9.2 years. Notional maturities for all interest-rate contracts are nil for the remainder of 2023 and for 2024, $ 80.0 for 2025, $ 177.0 for 2026, $ 86.1 for 2027 and $4 5.5 thereafter. The following table presents the balance sheet classification, fair value and gross and net amounts of derivative financial instruments: September 30, 2023 December 31, 2022 Interest-rate contracts: Assets Liabilities Assets Liabilities Other assets $ 6.8 $ 4.0 Accounts payable, accrued expenses and other $ 5.3 $ 19.7 Gross amounts recognized in Balance Sheets 6.8 5.3 4.0 19.7 Less amounts not offset in financial instruments ( .7 ) ( .7 ) ( 1.1 ) ( 1.1 ) Pro forma net amount $ 6.1 $ 4.6 $ 2.9 $ 18.6 Cash Flow Hedges Certain of the Company’s interest-rate contracts have been designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in AOCI. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 9.2 years. Amounts in AOCI are reclassified into net income in the same period in which the hedged transaction affects earnings and are presented in the same income statement line as the earnings effect of the hedged transaction. The amount of gain recorded in AOCI at September 30, 2023 that is estimated to be reclassified to interest expense in the following 12 months if interest rates remain unchanged is approximately $ 7.9 , net of taxes. The fixed interest earned on finance receivables will offset the amount recognized in interest expense, resulting in a stable interest margin consistent with the Company’s interest-rate risk management strategy. Fair Value Hedges Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with the changes in fair value of the hedged item attributable to the risk being hedged. The following table presents the amounts recorded on the Balance Sheets related to cumulative basis adjustments for fair value hedges: September 30 December 31 2023 2022 Medium-term notes: Carrying amount of the hedged liabilities $ 75.0 $ 215.8 Cumulative basis adjustment included in the carrying amount ( 5.0 ) ( 19.2 ) The above table excludes the cumulative basis adjustments on discontinued hedge relationships of $( 12.2 ) and $( 4.8 ) as of September 30, 2023 and December 31, 2022, respectively. The following table presents the amount of (income) expense on cash flow and fair value hedges recognized in Interest and other borrowing costs on the Statements of Comprehensive Income and Retained Earnings: Three Months Ended Nine Months Ended September 30 September 30 2023 2022 2023 2022 (Gain) loss on fair value hedges Derivatives $ ( .6 ) $ ( .2 ) $ ( 14.2 ) $ 9.9 Hedged items 2.6 .6 19.3 ( 9.5 ) Loss (gain) on cash flow hedges Reclassified from AOCI into income 3.6 1.0 ( .7 ) 28.6 $ 5.6 $ 1.4 $ 4.4 $ 29.0

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	NOTE G – Income Taxes The Company’s effective income tax rate for the third quarter and first nine months of 2023 was 24.2 % and 24.7 %, respectively, compared to 24.9 % and 24.6 % for the same periods of 2022, reflecting changes in the state tax expense during the three and nine months periods ended September 30, 2023 and 2022. The Company is included in the consolidated federal income tax return of PACCAR. Federal income taxes for the Company are determined on a separate return basis. State income taxes, where the Company files combined tax returns with PACCAR, are determined on a blended statutory rate, which is substantially the same as the rate computed on a separate return basis.

Finance and Other Receivables (

Finance and Other Receivables (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Finance Receivables Allowance for Credit Losses	Allowance for Credit Losses The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases in the normal course of its operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. On average, commercial and other modifications extended contractual terms by approximately two months in 2023 and three months in 2022, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2023 and December 31, 2022. The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and, in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over 36 to 60 months , and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves. The Company individually evaluates certain finance receivables for expected credit losses. Finance receivables that are evaluated individually consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. In general, finance receivables that are 90 days past due are placed on non-accrual status. Finance receivables on non-accrual status which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments. Individually evaluated receivables on non-accrual status are generally considered collateral dependent. Large balance retail and all wholesale receivables on non-accrual status are individually evaluated to determine the appropriate reserve for losses. The determination of reserves for large balance receivables on non-accrual status considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s amortized cost basis, no reserve is recorded. Small balance receivables on non-accrual status with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below. The Company evaluates finance receivables that are not individually evaluated and share similar risk characteristics on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss information provides relevant information of expected credit losses. The historical data used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse. The Company has developed a range of loss estimates of its portfolio based on historical experience, taking into account loss frequency and severity in both strong and weak truck market conditions. A projection is made of the range of estimated credit losses inherent in the portfolio from which an amount is determined based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and market in which the Company conducts business. The Company utilizes economic forecasts from third party sources and determines expected losses based on historical experience under similar market conditions. After determining the appropriate level of the allowance for credit losses, a provision for losses on finance receivables is charged to income as necessary to reflect management’s estimate of expected credit losses, net of recoveries, inherent in the portfolio. In determining the fair value of the collateral, the Company uses a pricing matrix and categorizes the fair value as Level 2 in the hierarchy of fair value measurement. The pricing matrix is reviewed quarterly and updated as appropriate. The pricing matrix considers the make, model and year of the equipment as well as recent sales prices of comparable equipment sold individually, which is the lowest unit of account, through wholesale channels to the Company’s dealers (principal market). The fair value of the collateral also considers the overall condition of the equipment. Accounts are charged off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost basis.

Finance and Other Receivables_2

Finance and Other Receivables (Tables)	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Finance and Other Receivables	The Company’s finance and other receivables include the following: September 30 December 31 2023 2022 Retail loans $ 4,915.6 $ 4,627.0 Retail financing leases 1,625.1 1,433.5 Dealer wholesale financing 1,716.3 1,093.2 Dealer master notes 394.9 377.0 Operating lease receivables and other 54.2 49.4 8,706.1 7,580.1 Less allowance for credit losses: Loans and leases ( 59.0 ) ( 59.7 ) Dealer wholesale financing ( .9 ) ( 1.0 ) Operating lease receivables and other ( 1.1 ) ( 1.0 ) $ 8,645.1 $ 7,518.4
Allowance for Credit Losses	The allowance for credit losses is summarized as follows: 2023 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 1.0 $ 1.8 $ 57.9 $ 1.0 $ 61.7 Provision for losses ( .1 ) ( .6 ) 2.9 2.2 Charge-offs ( 3.8 ) ( 3.8 ) Recoveries .8 .1 .9 Balance at September 30 $ .9 $ 1.2 $ 57.8 $ 1.1 $ 61.0 2022 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 1.0 $ 6.5 $ 57.1 $ 1.1 $ 65.7 Provision for losses .1 ( 3.0 ) ( .7 ) ( 3.6 ) Charge-offs ( 1.1 ) ( .1 ) ( 1.2 ) Recoveries 2.0 2.0 Balance at September 30 $ 1.1 $ 3.5 $ 57.3 $ 1.0 $ 62.9 * Operating lease and other trade receivables.
Finance Receivables by Credit Quality Indicator and Portfolio Class	The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class and current period gross charge-offs of the Company’s finance receivables by year of origination and portfolio class. At September 30, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Amortized Cost Basis: Dealer: Wholesale: Performing $ 1,715.2 $ 1,715.2 Watch 1.1 1.1 $ 1,716.3 $ 1,716.3 Retail: Performing $ 164.3 $ 485.6 $ 488.3 $ 289.8 $ 147.0 $ 165.0 $ 129.5 $ 1,869.5 $ 164.3 $ 485.6 $ 488.3 $ 289.8 $ 147.0 $ 165.0 $ 129.5 $ 1,869.5 Total Dealer $ 1,880.6 $ 485.6 $ 488.3 $ 289.8 $ 147.0 $ 165.0 $ 129.5 $ 3,585.8 Customer Retail: Fleet: Performing $ 1,537.0 $ 1,361.9 $ 818.3 $ 522.4 $ 199.8 $ 56.1 $ 4,495.5 Watch .1 2.4 1.3 .2 .3 .9 5.2 At-risk 1.0 3.3 4.0 2.0 11.0 .2 21.5 $ 1,538.1 $ 1,367.6 $ 823.6 $ 524.6 $ 211.1 $ 57.2 $ 4,522.2 Owner/Operator: Performing $ 116.2 $ 155.0 $ 149.7 $ 79.7 $ 31.4 $ 6.6 $ 538.6 Watch .1 .5 .7 .3 .1 1.7 At-risk .9 1.7 .5 .5 3.6 $ 116.3 $ 156.4 $ 152.1 $ 80.5 $ 31.9 $ 6.7 $ 543.9 Total Customer Retail $ 1,654.4 $ 1,524.0 $ 975.7 $ 605.1 $ 243.0 $ 63.9 $ 5,066.1 Total $ 1,880.6 $ 2,140.0 $ 2,012.3 $ 1,265.5 $ 752.1 $ 408.0 $ 193.4 $ 8,651.9 At September 30, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Gross Charge-Offs: Customer Retail: Fleet $ 1.6 $ .4 $ .1 $ .1 $ 2.2 Owner/Operator $ .1 .6 .5 .2 $ .2 1.6 Total $ .1 $ 2.2 $ .9 $ .3 $ .1 $ .2 $ 3.8 At December 31, 2022 Revolving Loans 2022 2021 2020 2019 2018 Prior Total Amortized Cost Basis: Dealer: Wholesale: Performing $ 1,087.0 $ 1,087.0 Watch 6.2 6.2 $ 1,093.2 $ 1,093.2 Retail: Performing $ 206.2 $ 546.2 $ 315.5 $ 182.7 $ 214.9 $ 97.5 $ 105.0 $ 1,668.0 $ 206.2 $ 546.2 $ 315.5 $ 182.7 $ 214.9 $ 97.5 $ 105.0 $ 1,668.0 Total Dealer $ 1,299.4 $ 546.2 $ 315.5 $ 182.7 $ 214.9 $ 97.5 $ 105.0 $ 2,761.2 Customer Retail: Fleet: Performing $ 1,698.2 $ 1,130.2 $ 751.7 $ 382.6 $ 113.7 $ 38.6 $ 4,115.0 Watch 2.9 1.7 .3 2.9 2.0 .6 10.4 At-risk 1.6 6.0 1.7 10.4 4.1 .4 24.2 $ 1,702.7 $ 1,137.9 $ 753.7 $ 395.9 $ 119.8 $ 39.6 $ 4,149.6 Owner/Operator: Performing $ 199.2 $ 216.8 $ 124.7 $ 56.5 $ 17.9 $ 2.7 $ 617.8 Watch .5 .4 .1 1.0 At-risk .4 .3 .1 .2 .1 1.1 $ 200.1 $ 217.5 $ 124.9 $ 56.7 $ 18.0 $ 2.7 $ 619.9 Total Customer Retail $ 1,902.8 $ 1,355.4 $ 878.6 $ 452.6 $ 137.8 $ 42.3 $ 4,769.5 Total $ 1,299.4 $ 2,449.0 $ 1,670.9 $ 1,061.3 $ 667.5 $ 235.3 $ 147.3 $ 7,530.7
Summary of Amortized Cost Basis of Financing Receivables by Aging Category	The tables below summarize the amortized cost basis of the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes. Dealer Customer Retail Owner/ At September 30, 2023 Wholesale Retail Fleet Operator Total Current and up to 30 days past due $ 1,716.3 $ 1,869.5 $ 4,500.1 $ 539.4 $ 8,625.3 31 – 60 days past due 13.4 2.8 16.2 Greater than 60 days past due 8.7 1.7 10.4 $ 1,716.3 $ 1,869.5 $ 4,522.2 $ 543.9 $ 8,651.9 Dealer Customer Retail Owner/ At December 31, 2022 Wholesale Retail Fleet Operator Total Current and up to 30 days past due $ 1,093.2 $ 1,668.0 $ 4,143.7 $ 618.3 $ 7,523.2 31 – 60 days past due 1.1 1.4 2.5 Greater than 60 days past due 4.8 .2 5.0 $ 1,093.2 $ 1,668.0 $ 4,149.6 $ 619.9 $ 7,530.7
Amortized Cost Basis for Finance Receivables that are on Non-accrual Status	The amortized cost basis of finance receivables that are on non-accrual status was as follows: Dealer Customer Retail Owner/ At September 30, 2023 Wholesale Retail Fleet Operator Total Amortized cost basis with a specific reserve $ 4.7 $ 3.1 $ 7.8 Amortized cost basis with no specific reserve 16.8 .5 17.3 $ 21.5 $ 3.6 $ 25.1 Dealer Customer Retail Owner/ At December 31, 2022 Wholesale Retail Fleet Operator Total Amortized cost basis with a specific reserve $ 2.0 $ 1.1 $ 3.1 Amortized cost basis with no specific reserve 6.1 6.1 $ 8.1 $ 1.1 $ 9.2
Interest Income Recognized on Cash Basis for Finance Receivables that are on Non-accrual Status	Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows: Three Months Ended Nine Months Ended September 30 September 30 2023 2022 2023 2022 Fleet $ .1 $ .1 $ .3 $ .5 Owner/Operator .1 $ .1 $ .1 $ .4 $ .5

Transactions with PACCAR and _2

Transactions with PACCAR and Affiliates (Tables)	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Amounts Outstanding Including Foreign Finance Affiliates	Amounts outstanding at September 30, 2023 and December 31, 2022, including balances with foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada, Australia and Brasil, are summarized below: September 30 December 31 2023 2022 Due from PACCAR and affiliates Loans due from PACCAR $ 972.5 $ 1,261.0 Loans due from foreign finance affiliates 647.0 627.0 Tax-related receivable due from PACCAR 4.4 Receivables 14.8 12.9 $ 1,634.3 $ 1,905.3 Due to PACCAR and affiliates Tax-related payable due to PACCAR $ 3.6 Payables 57.5 $ 21.8 $ 61.1 $ 21.8

Stockholder's Equity (Tables)

Stockholder's Equity (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Components of Comprehensive Income	Comprehensive Income The components of comprehensive income are as follows: Three Months Ended Nine Months Ended September 30 September 30 2023 2022 2023 2022 Net income $ 32.2 $ 43.5 $ 111.6 $ 145.9 Other comprehensive income Derivative contracts increase 2.1 1.2 .6 22.9 Total comprehensive income $ 34.3 $ 44.7 $ 112.2 $ 168.8
Changes in and Reclassifications out of Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Income Accumulated other comprehensive income (AOCI) of $ 19.0 and $ 18.4 at September 30, 2023 and December 31, 2022, respectively, is comprised of the unrealized net gain on derivative contracts, net of taxes. Changes in and reclassifications out of AOCI during the periods are as follows: Three Months Ended Nine Months Ended September 30 September 30 2023 2022 2023 2022 Balance at beginning of period $ 16.9 $ 19.8 $ 18.4 $ ( 1.9 ) Amounts recorded in AOCI Unrealized (loss) gain on derivative contracts ( .8 ) .6 1.5 1.8 Income tax effect .2 ( .1 ) ( .4 ) ( .4 ) Amounts reclassified out of AOCI Interest and other borrowing costs 3.6 1.0 ( .7 ) 28.6 Income tax effect ( .9 ) ( .3 ) .2 ( 7.1 ) Net other comprehensive income 2.1 1.2 .6 22.9 Balance at end of period $ 19.0 $ 21.0 $ 19.0 $ 21.0

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Assets and Liabilities Fair Value Measurements	The Company’s assets and liabilities subject to fair value measurements are as follows: September 30 December 31 Level 2 2023 2022 Assets: Used trucks held for sale $ 14.5 $ .2 Derivative contracts 6.8 4.0 Liabilities: Derivative contracts $ 5.3 $ 19.7
Carrying Amount and Fair Value Fixed-Rate Loans and Fixed-Rate Debt	The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows: September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Amount Value Amount Value Assets: Due from PACCAR $ 886.0 $ 852.5 $ 1,101.0 $ 1,048.2 Due from foreign finance affiliates 534.0 503.7 554.0 516.6 Fixed rate loans 5,149.5 4,998.8 4,779.4 4,566.4 Liabilities: Fixed rate debt $ 5,481.7 $ 5,287.3 $ 5,826.1 $ 5,559.0

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Balance Sheet Classification, Fair Value and Gross and Net Amounts of Derivative Financial Instruments	The following table presents the balance sheet classification, fair value and gross and net amounts of derivative financial instruments: September 30, 2023 December 31, 2022 Interest-rate contracts: Assets Liabilities Assets Liabilities Other assets $ 6.8 $ 4.0 Accounts payable, accrued expenses and other $ 5.3 $ 19.7 Gross amounts recognized in Balance Sheets 6.8 5.3 4.0 19.7 Less amounts not offset in financial instruments ( .7 ) ( .7 ) ( 1.1 ) ( 1.1 ) Pro forma net amount $ 6.1 $ 4.6 $ 2.9 $ 18.6
Amounts Recorded on Balance Sheets Related to Cumulative Basis Adjustments for Fair Value Hedges	The following table presents the amounts recorded on the Balance Sheets related to cumulative basis adjustments for fair value hedges: September 30 December 31 2023 2022 Medium-term notes: Carrying amount of the hedged liabilities $ 75.0 $ 215.8 Cumulative basis adjustment included in the carrying amount ( 5.0 ) ( 19.2 )
Amount of (Income) Expense on Cash Flow and Fair Value Hedges Recognized in Interest and Other Borrowing Costs on Statements of Comprehensive Income and Retained Earnings	The following table presents the amount of (income) expense on cash flow and fair value hedges recognized in Interest and other borrowing costs on the Statements of Comprehensive Income and Retained Earnings: Three Months Ended Nine Months Ended September 30 September 30 2023 2022 2023 2022 (Gain) loss on fair value hedges Derivatives $ ( .6 ) $ ( .2 ) $ ( 14.2 ) $ 9.9 Hedged items 2.6 .6 19.3 ( 9.5 ) Loss (gain) on cash flow hedges Reclassified from AOCI into income 3.6 1.0 ( .7 ) 28.6 $ 5.6 $ 1.4 $ 4.4 $ 29.0

The Company Adopted Standards (

The Company Adopted Standards (Detail) - Accounting Standards Update 2022-02	9 Months Ended
	Sep. 30, 2023
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
DESCRIPTION	Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures
EFFECTIVE DATE	Jan. 01, 2023

Finance and Other Receivables_3

Finance and Other Receivables (Detail) - USD ($) $ in Millions		Sep. 30, 2023	Dec. 31, 2022		Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retail loans		$ 4,915.6	$ 4,627
Retail financing leases		1,625.1	1,433.5
Dealer wholesale financing		1,716.3	1,093.2
Dealer master notes		394.9	377
Operating lease receivables and other		54.2	49.4
Total portfolio		8,706.1	7,580.1
Less allowance for credit losses		(61)	(61.7)		$ (62.9)	$ (65.7)
Finance and other receivables, net		8,645.1	7,518.4	[1]
Loans and Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for credit losses		(59)	(59.7)
Dealer | Wholesale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for credit losses		(0.9)	(1)		(1.1)	(1)
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for credit losses	[2]	$ (1.1)	$ (1)		$ (1)	$ (1.1)
[1] The December 31, 2022 balance sheet has been derived from audited financial statements. Operating lease and other trade receivables.

Finance and Other Receivables -

Finance and Other Receivables - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) Segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable, net of allowance for credit losses	$ 25,200,000		$ 25,200,000		$ 19,300,000
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Other assets		Other assets		Other assets
Receivables more than 90 days past due still accruing	$ 0		$ 0		$ 0
Financing lease, interest income	20,400,000	$ 14,600,000	$ 55,800,000	$ 43,500,000
Number of portfolio segments | Segment			2
Customers in financial difficulty		$ 15,400,000		15,400,000	13,300,000
Finance receivables modified as TDRs				0
Repossessed inventory	7,600,000		$ 7,600,000		$ 2,300,000
Proceeds from sales of repossessed assets			$ 9,100,000	$ 5,600,000
Minimum | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual term of regular payment of principal and interest			36 months
Maximum | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual term of regular payment of principal and interest			60 months
Maximum | Financing Receivable | Credit Concentration Risk | Financial Services | Total Portfolio Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers diversification in portfolio			10%		10%
Extended Maturity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Modifications extended contractual terms			2 months		3 months
Customers Experiencing Financial Difficulty
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customers in financial difficulty	$ 1,200,000		$ 1,200,000

Allowance for Credit Losses (De

Allowance for Credit Losses (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				$ 61.7	$ 65.7
Provision for losses on receivables		$ 0.8	$ (1.2)	2.2	(3.6)
Charge-offs				(3.8)	(1.2)
Recoveries				0.9	2
Ending Balance		61	62.9	61	62.9
Dealer | Wholesale
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				1	1
Provision for losses on receivables				(0.1)	0.1
Ending Balance		0.9	1.1	0.9	1.1
Dealer | Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				1.8	6.5
Provision for losses on receivables				(0.6)	(3)
Ending Balance		1.2	3.5	1.2	3.5
Customer Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance				57.9	57.1
Provision for losses on receivables				2.9	(0.7)
Charge-offs				(3.8)	(1.1)
Recoveries				0.8	2
Ending Balance		57.8	57.3	57.8	57.3
Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	[1]			1	1.1
Charge-offs					(0.1)
Recoveries	[1]			0.1
Ending Balance	[1]	$ 1.1	$ 1	$ 1.1	$ 1
[1] Operating lease and other trade receivables.

Finance Receivables within Cred

Finance Receivables within Credit Quality Indicator and Portfolio Class (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	$ 1,880.6	$ 1,299.4
2023	2,140	2,449
2022	2,012.3	1,670.9
2021	1,265.5	1,061.3
2020	752.1	667.5
2019	408	235.3
Prior	193.4	147.3
Total	8,651.9	7,530.7
Dealer
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	1,880.6	1,299.4
2023	485.6	546.2
2022	488.3	315.5
2021	289.8	182.7
2020	147	214.9
2019	165	97.5
Prior	129.5	105
Total	3,585.8	2,761.2
Dealer | Wholesale
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	1,716.3	1,093.2
Total	1,716.3	1,093.2
Dealer | Wholesale | Performing
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	1,715.2	1,087
Total	1,715.2	1,087
Dealer | Wholesale | Watch
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	1.1	6.2
Total	1.1	6.2
Dealer | Retail
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	164.3	206.2
2023	485.6	546.2
2022	488.3	315.5
2021	289.8	182.7
2020	147	214.9
2019	165	97.5
Prior	129.5	105
Total	1,869.5	1,668
Dealer | Retail | Performing
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	164.3	206.2
2023	485.6	546.2
2022	488.3	315.5
2021	289.8	182.7
2020	147	214.9
2019	165	97.5
Prior	129.5	105
Total	1,869.5	1,668
Customer Retail
Financing Receivable Recorded Investment [Line Items]
2023	1,654.4	1,902.8
2022	1,524	1,355.4
2021	975.7	878.6
2020	605.1	452.6
2019	243	137.8
Prior	63.9	42.3
Total	5,066.1	4,769.5
Customer Retail | Gross Charge-Offs
Financing Receivable Recorded Investment [Line Items]
2023	0.1
2022	2.2
2021	0.9
2020	0.3
2019	0.1
Prior	0.2
Total	3.8
Customer Retail | Fleet
Financing Receivable Recorded Investment [Line Items]
2023	1,538.1	1,702.7
2022	1,367.6	1,137.9
2021	823.6	753.7
2020	524.6	395.9
2019	211.1	119.8
Prior	57.2	39.6
Total	4,522.2	4,149.6
Customer Retail | Fleet | Performing
Financing Receivable Recorded Investment [Line Items]
2023	1,537	1,698.2
2022	1,361.9	1,130.2
2021	818.3	751.7
2020	522.4	382.6
2019	199.8	113.7
Prior	56.1	38.6
Total	4,495.5	4,115
Customer Retail | Fleet | Watch
Financing Receivable Recorded Investment [Line Items]
2023	0.1	2.9
2022	2.4	1.7
2021	1.3	0.3
2020	0.2	2.9
2019	0.3	2
Prior	0.9	0.6
Total	5.2	10.4
Customer Retail | Fleet | At-risk
Financing Receivable Recorded Investment [Line Items]
2023	1	1.6
2022	3.3	6
2021	4	1.7
2020	2	10.4
2019	11	4.1
Prior	0.2	0.4
Total	21.5	24.2
Customer Retail | Fleet | Gross Charge-Offs
Financing Receivable Recorded Investment [Line Items]
2022	1.6
2021	0.4
2020	0.1
2019	0.1
Total	2.2
Customer Retail | Owner/Oparator
Financing Receivable Recorded Investment [Line Items]
2023	116.3	200.1
2022	156.4	217.5
2021	152.1	124.9
2020	80.5	56.7
2019	31.9	18
Prior	6.7	2.7
Total	543.9	619.9
Customer Retail | Owner/Oparator | Performing
Financing Receivable Recorded Investment [Line Items]
2023	116.2	199.2
2022	155	216.8
2021	149.7	124.7
2020	79.7	56.5
2019	31.4	17.9
Prior	6.6	2.7
Total	538.6	617.8
Customer Retail | Owner/Oparator | Watch
Financing Receivable Recorded Investment [Line Items]
2023	0.1	0.5
2022	0.5	0.4
2021	0.7	0.1
2020	0.3
Prior	0.1
Total	1.7	1
Customer Retail | Owner/Oparator | At-risk
Financing Receivable Recorded Investment [Line Items]
2023		0.4
2022	0.9	0.3
2021	1.7	0.1
2020	0.5	0.2
2019	0.5	0.1
Total	3.6	$ 1.1
Customer Retail | Owner/Oparator | Gross Charge-Offs
Financing Receivable Recorded Investment [Line Items]
2023	0.1
2022	0.6
2021	0.5
2020	0.2
Prior	0.2
Total	$ 1.6

Summary of Amortized Cost Basis

Summary of Amortized Cost Basis of Financing Receivables by Aging Category (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	$ 8,651.9	$ 7,530.7
Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	8,625.3	7,523.2
31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	16.2	2.5
Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	10.4	5
Dealer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	3,585.8	2,761.2
Dealer | Wholesale
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	1,716.3	1,093.2
Dealer | Wholesale | Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	1,716.3	1,093.2
Dealer | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	1,869.5	1,668
Dealer | Retail | Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	1,869.5	1,668
Customer Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	5,066.1	4,769.5
Customer Retail | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	4,522.2	4,149.6
Customer Retail | Fleet | Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	4,500.1	4,143.7
Customer Retail | Fleet | 31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	13.4	1.1
Customer Retail | Fleet | Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	8.7	4.8
Customer Retail | Owner/Oparator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	543.9	619.9
Customer Retail | Owner/Oparator | Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	539.4	618.3
Customer Retail | Owner/Oparator | 31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	2.8	1.4
Customer Retail | Owner/Oparator | Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	$ 1.7	$ 0.2

Amortized Cost Basis for Financ

Amortized Cost Basis for Finance Receivables that are on Non-accrual Status (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	$ 7.8	$ 3.1
Amortized cost basis with no specific reserve	17.3	6.1
Total	25.1	9.2
Customer Retail | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	4.7	2
Amortized cost basis with no specific reserve	16.8	6.1
Total	21.5	8.1
Customer Retail | Owner/Oparator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	3.1	1.1
Amortized cost basis with no specific reserve	0.5
Total	$ 3.6	$ 1.1

Interest Income Recognized on C

Interest Income Recognized on Cash Basis for Finance Receivables that are on Non-accrual Status (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Interest income recognized on cash basis for finance receivables that are on non-accrual status	$ 0.1	$ 0.1	$ 0.4	$ 0.5
Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Interest income recognized on cash basis for finance receivables that are on non-accrual status	$ 0.1	$ 0.1	0.3	$ 0.5
Owner/Oparator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Interest income recognized on cash basis for finance receivables that are on non-accrual status			$ 0.1

Transactions with PACCAR and _3

Transactions with PACCAR and Affiliates - Additional Information (Detail) $ in Millions	Sep. 30, 2023 USD ($) Facility
Related Party Transaction [Line Items]
Required ratio of net earnings available for fixed charges to fixed charges	125%
Number of facilities leased by company | Facility	5
Foreign Finance Affiliates
Related Party Transaction [Line Items]
Loans to foreign affiliates, upper limit | $	$ 750

Amounts Outstanding Including F

Amounts Outstanding Including Foreign Finance Affiliates (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Accounts Payable and Accrued Liabilities [Abstract]
Due to PACCAR and affiliates	$ 61.1	$ 21.8	[1]
Related Party [Member]
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Due from PACCAR and affiliates	1,634.3	1,905.3
Accounts Payable and Accrued Liabilities [Abstract]
Due to PACCAR and affiliates	61.1	21.8
Related Party [Member] | Affiliated Entity [Member]
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Loans due from PACCAR/ foreign affiliates	972.5	1,261
Tax-related receivable due from PACCAR		4.4
Accounts Payable and Accrued Liabilities [Abstract]
Tax-related payable due to PACCAR	3.6
Related Party [Member] | Foreign Finance Affiliates
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Loans due from PACCAR/ foreign affiliates	647	627
Related Party [Member] | Other Affiliates [Member]
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Receivables	14.8	12.9
Accounts Payable and Accrued Liabilities [Abstract]
Payables	$ 57.5	$ 21.8
[1] The December 31, 2022 balance sheet has been derived from audited financial statements.

Stockholder's Equity - Addition

Stockholder's Equity - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	[1]
Equity [Abstract]
Preferred stock dividend percentage	6%
Ownership percentage of PACCAR	100%
Accumulated other comprehensive (loss) income	$ 19	$ 18.4
[1] The December 31, 2022 balance sheet has been derived from audited financial statements.

Components of Comprehensive Inc

Components of Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 32.2	$ 43.5	$ 111.6	$ 145.9
Other comprehensive income
Derivative contracts increase	2.1	1.2	0.6	22.9
Total comprehensive income	$ 34.3	$ 44.7	$ 112.2	$ 168.8

Changes in and Reclassification

Changes in and Reclassifications out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	[1]			$ 2,042.1
Interest and other borrowing costs		$ 74.9	$ 35.2	192.1	$ 92.5
Income tax effect		(10.3)	(14.4)	(36.7)	(47.7)
Ending balance		1,909.9	1,992.5	1,909.9	1,992.5
Accumulated Gain (Loss) Net Cash Flow Hedge Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance		16.9	19.8	18.4	(1.9)
Amounts recorded in AOCL related to Unrealized (loss) gain on derivative contracts, before tax		(0.8)	0.6	1.5	1.8
Amounts recorded in AOCL related to Unrealized gain (loss) on derivative contracts, income tax effect		(0.2)	0.1	0.4	0.4
Net other comprehensive income		2.1	1.2	0.6	22.9
Ending balance		19	21	19	21
Accumulated Gain (Loss) Net Cash Flow Hedge Parent | Amounts reclassified out of AOCI
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest and other borrowing costs		3.6	1	(0.7)	28.6
Income tax effect		$ 0.9	$ 0.3	$ (0.2)	$ 7.1
[1] The December 31, 2022 balance sheet has been derived from audited financial statements.

Assets and Liabilities Fair Val

Assets and Liabilities Fair Value Measurements (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Assets:
Derivative contracts	$ 6.8	$ 4
Liabilities:
Derivative contracts	5.3	19.7
Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring
Assets:
Used trucks held for sale	14.5	0.2
Fair Value, Inputs, Level 2 | Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets:
Derivative contracts	6.8	4
Liabilities:
Derivative contracts	$ 5.3	$ 19.7

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Trucks Inventory
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Used truck impairments	$ 4.7	$ 0

Carrying Amount and Fair Value

Carrying Amount and Fair Value for Fixed-Rate Loans and Debt (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Assets:
Due from PACCAR and affiliates	$ 1,634.3	$ 1,905.3	[1]
Carrying Amount
Assets:
Fixed rate loans	5,149.5	4,779.4
Liabilities:
Fixed rate debt	5,481.7	5,826.1
Carrying Amount | Foreign Finance Affiliates
Assets:
Due from PACCAR and affiliates	534	554
Carrying Amount | Related Party
Assets:
Due from PACCAR and affiliates	886	1,101
Fair Value
Assets:
Fixed rate loans	4,998.8	4,566.4
Liabilities:
Fixed rate debt	5,287.3	5,559
Fair Value | Foreign Finance Affiliates
Assets:
Due from PACCAR and affiliates	503.7	516.6
Fair Value | Related Party
Assets:
Due from PACCAR and affiliates	$ 852.5	$ 1,048.2
[1] The December 31, 2022 balance sheet has been derived from audited financial statements.

Derivative Financial Instrume_3

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest rate derivative portfolio	$ 6,800,000
Notional amount of interest-rate contracts	$ 388,600,000
Interest-rate contracts maturity period	9 years 2 months 12 days
Notional maturities for interest-rate contracts remainder of 2023	$ 0
Notional maturities for interest-rate contracts 2024	0
Notional maturities for interest-rate contracts 2025	80,000,000
Notional maturities for interest-rate contracts 2026	177,000,000
Notional maturities for interest-rate contracts 2027	86,100,000
Notional maturities for interest-rate contracts thereafter	$ 5,500,000
Maximum length of time for which company is hedging its exposure to the variability in future cash flows	9 years 2 months 12 days
Accumulated net gain on interest rate contracts included in AOCI expected to be reclassified to interest expense in the following 12 months	$ 7,900,000
Cumulative basis adjustments on discontinued hedge relationships	$ (12,200,000)	$ (4,800,000)

Balance Sheet Classification, F

Balance Sheet Classification, Fair Value and Gross and Net Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Assets gross amount recognized in balance sheets	$ 6.8	$ 4
Less amounts not offset in financial instruments	(0.7)	(1.1)
Pro forma net amount	6.1	2.9
Liabilities gross amount recognized in balance sheets	5.3	19.7
Less amounts not offset in financial instruments	(0.7)	(1.1)
Pro forma net amount	$ 4.6	$ 18.6
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accounts payable, accrued expenses and other	Accounts payable, accrued expenses and other
Interest Rate Contract | Other Assets
Derivatives, Fair Value [Line Items]
Assets gross amount recognized in balance sheets	$ 6.8	$ 4
Interest Rate Contract | Accounts Payable, Accrued Expenses and Other
Derivatives, Fair Value [Line Items]
Liabilities gross amount recognized in balance sheets	$ 5.3	$ 19.7

Amounts Recorded on Balance She

Amounts Recorded on Balance Sheets Related to Cumulative Basis Adjustments for Fair Value Hedges (Detail) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Carrying amount of the hedged liabilities	$ 75	$ 215.8
Medium-term Notes
Derivative [Line Items]
Cumulative basis adjustment included in the carrying amount	$ (5)	$ (19.2)

Amount of (Income) Expense on C

Amount of (Income) Expense on Cash Flow and Fair Value Hedges Recognized in Interest and Other Borrowing Costs on Statements of Comprehensive Income and Retained Earnings (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	$ (0.6)	$ (0.2)	$ (14.2)	$ 9.9
Hedged items	2.6	0.6	19.3	(9.5)
Reclassified from AOCI into income	3.6	1	(0.7)	28.6
Total (income) and expense	$ 5.6	$ 1.4	$ 4.4	$ 29

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	24.20%	24.90%	24.70%	24.60%