Paccar Financial 10-K 21 Feb 24 2023 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2023	Jan. 31, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Trading Symbol	PCAR26
Entity Registrant Name	PACCAR FINANCIAL CORP
Entity Central Index Key	0000731288
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
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 Public Float			$ 0
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 Avenue 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 Annual Report	true
Document Transition Report	false
Document Financial Statement Error Correction [Flag]	false
Auditor Firm ID	42
Auditor Name	Ernst & Young LLP
Auditor Location	Seattle, Washington
ICFR Auditor Attestation Flag	false
Documents Incorporated by Reference	THE REGISTRANT IS A WHOLLY OWNED SUBSIDIARY OF PACCAR INC AND MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS (I) (1) (a) AND (b) OF FORM 10-K AND IS, THEREFORE, FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

STATEMENTS OF INCOME

STATEMENTS OF INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Interest and fee income	$ 477.9	$ 318.5	$ 300.5
Operating lease and rental revenues	235.4	306.1	333.8
Used truck sales and other revenues	20.8	18.3	81.7
TOTAL INTEREST AND OTHER REVENUES	734.1	642.9	716
Interest and other borrowing costs	275.7	138.8	124.5
Depreciation and other rental expenses	189.1	179.6	268.7
Cost of used truck sales and other expenses	15	8.6	71.4
Selling, general and administrative expenses	64.5	60.7	57.3
Provision for losses on receivables	8.1	(4.7)	(2.2)
TOTAL EXPENSES	552.4	383	519.7
INCOME BEFORE INCOME TAXES	181.7	259.9	196.3
Income taxes	42.2	63.1	48.2
NET INCOME	$ 139.5	$ 196.8	$ 148.1

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 139.5	$ 196.8	$ 148.1
Unrealized (losses) gains on derivative contracts
(Losses) gains arising during the period	(5.2)	(0.9)	18.7
Tax effect	1.3	0.2	(4.6)
Reclassification adjustment	(4.6)	27.9	12.4
Tax effect	1.1	(6.9)	(3.1)
Net other comprehensive (loss) income	(7.4)	20.3	23.4
TOTAL COMPREHENSIVE INCOME	$ 132.1	$ 217.1	$ 171.5

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Cash	$ 175.1	$ 48.8
Finance and other receivables, net of allowance for losses (2023 - $61.0 and 2022 - $61.7)	9,205.4	7,518.4
Due from PACCAR and affiliates	$ 1,750.7	$ 1,905.3
Other Receivable, after Allowance for Credit Loss, Related Party, Type [Extensible Enumeration]	Related Party	Related Party
Equipment on operating leases, net of accumulated depreciation (2023 - $412.5 and 2022 - $625.9)	$ 528	$ 854
Other assets	337.8	223.9
TOTAL ASSETS	11,997	10,550.4
LIABILITIES
Accounts payable, accrued expenses and other	603.1	528.3
Due to PACCAR and affiliates	$ 58.6	$ 21.8
Other Liability, Related Party, Type [Extensible Enumeration]	Related Party	Related Party
Commercial paper	$ 2,842.4	$ 1,657.7
Medium-term notes	6,071.7	5,814.5
Deferred taxes and other liabilities	490	486
TOTAL LIABILITIES	10,065.8	8,508.3
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
Common Stock, par value $100 per share, 200,000 shares authorized, 145,000 shares issued and outstanding	14.5	14.5
Additional paid-in capital	171.6	164.6
Retained earnings	1,703.1	1,813.6
Accumulated other comprehensive income	11	18.4
TOTAL STOCKHOLDER'S EQUITY	1,931.2	2,042.1
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 11,997	$ 10,550.4

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 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	$ 412.5	$ 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	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
OPERATING ACTIVITIES
Net income	$ 139.5	$ 196.8	$ 148.1
Items included in net income not affecting cash:
Depreciation and amortization	181.9	167.9	252.2
Provision for losses on receivables	8.1	(4.7)	(2.2)
Deferred taxes	11.2	15.6	(201.9)
Administrative fees for services from PACCAR	7	8.6	8.1
Change in tax-related balances with PACCAR	6.3	24.4	(39.2)
Increase in payables and other	40.2	144	120.2
NET CASH PROVIDED BY OPERATING ACTIVITIES	394.2	552.6	285.3
INVESTING ACTIVITIES
Finance and other receivables originated	(3,319.7)	(2,807.1)	(2,857.8)
Collections on finance and other receivables	2,470.7	2,366.4	2,599.5
Net (increase) decrease in wholesale receivables	(860.1)	(355.6)	283.5
Loans to PACCAR and affiliates	(415)	(694.9)	(381)
Collections on loans from PACCAR and affiliates	555	350.9	726
Net decrease (increase) in other receivables to PACCAR and affiliates	16	(118)	50.1
Acquisitions of equipment for operating leases	(62.4)	(228)	(188.6)
Proceeds from disposals of equipment	176.1	213.5	300.1
Other, net	(11.4)	(69.5)	(18.6)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(1,450.8)	(1,342.3)	513.2
FINANCING ACTIVITIES
Net increase (decrease) in short-term commercial paper	1,191.1	574.2	(219.4)
Proceeds from medium-term notes and other commercial paper	1,991.8	2,092.2	1,295
Payments of medium-term notes and other commercial paper	(1,750)	(1,750)	(1,800)
Dividends paid	(250)	(100)	(100)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	1,182.9	816.4	(824.4)
NET INCREASE (DECREASE) IN CASH	126.3	26.7	(25.9)
CASH AT BEGINNING OF YEAR	48.8	22.1	48
CASH AT END OF YEAR	$ 175.1	$ 48.8	$ 22.1

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 (Loss)
Beginning balance at Dec. 31, 2020		$ 31	$ 14.5	$ 147.9	$ 1,668.7	$ (25.3)
Investments from PACCAR				8.1
Net Income (Loss)	$ 148.1				148.1
Dividends paid					(100)
Net unrealized (loss) gain						23.4
Ending balance at Dec. 31, 2021	1,916.4	31	14.5	156	1,716.8	(1.9)
Investments from PACCAR				8.6
Net Income (Loss)	196.8				196.8
Dividends paid					(100)
Net unrealized (loss) gain						20.3
Ending balance at Dec. 31, 2022	2,042.1	31	14.5	164.6	1,813.6	18.4
Investments from PACCAR				7
Net Income (Loss)	139.5				139.5
Dividends paid					(250)
Net unrealized (loss) gain						(7.4)
Ending balance at Dec. 31, 2023	$ 1,931.2	$ 31	$ 14.5	$ 171.6	$ 1,703.1	$ 11

STATEMENTS OF STOCKHOLDER'S E_2

STATEMENTS OF STOCKHOLDER'S EQUITY (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ 139.5	$ 196.8	$ 148.1

Insider Trading Arrangements

Insider Trading Arrangements	12 Months Ended
	Dec. 31, 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

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE A – SIGNIFICANT ACCOUNTING POLICIES Description of Operations and 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. Due to the nature of the Company’s business, customers are concentrated in the transportation industry throughout the United States. Generally, all receivables are collateralized by the equipment being financed. The risk of credit losses related to this concentration has been considered in establishing the allowance for credit losses. Use of Estimates : The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Finance and Other Receivables: Loans – Loans represent fixed or floating rate loans to customers or dealers collateralized by the vehicles purchased and are recorded at amortized cost. Finance leases – Finance leases are sales-type finance leases, which lease equipment to retail customers and dealers. These leases are reported as the sum of minimum lease payments receivable and estimated residual value of the property subject to the contracts, reduced by unearned interest. Dealer wholesale financing – Dealer wholesale financing is floating-rate wholesale loans to Kenworth and Peterbilt dealers for new and used trucks and are recorded at amortized cost. The loans are collateralized by the trucks being financed. Operating lease receivables and other – Operating lease receivables and other include monthly rentals due on operating leases, unamortized loan and lease origination costs, interest on loans and other amounts due within one year in the normal course of business. 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 three months in 2023 and 2022 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at December 31, 2023 or 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 data 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. Revenue Recognition : Interest income from finance and other receivables is recognized using the interest method. Certain loan and lease origination costs are deferred and amortized to interest income over the expected life of the contracts, generally 36 to 60 months , using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. 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 December 31, 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. The Company recognizes revenue on the sale of used trucks acquired from PACCAR truck division customers as part of new truck sales packages when the used trucks are invoiced and delivered to a customer. Equipment on Operating Leases : Equipment on operating leases is recorded at cost and is depreciated on the straight-line basis to its estimated residual value. Residual values are reviewed regularly and adjusted if market conditions warrant. 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 $ 1.2 at December 31, 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. Income Taxes : 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, and any related tax liability is paid by the Company to PACCAR and any related tax benefit is paid by PACCAR to the Company. 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. As of December 31, 2023, the United States Internal Revenue Service has completed examinations of PACCAR’s tax returns for all years through 2016. PACCAR’s tax returns remain subject to examination in other jurisdictions for the years ranging from 2012 through 2023 . 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. New Accounting Pronouncements: In December 2023, Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740) : Improvements to Income Tax Disclosures . The amendments in this ASU require entities to disclose certain, specific categories within the rate reconciliation and enhance disclosures regarding income taxes paid and income tax expense. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments in this ASU should be applied on a prospective basis; however, retrospective application is permitted. The implementation of this ASU will result in additional disclosures and will no t have an impact on the Company's financial statements. 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	12 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Finance and Other Receivables	NOTE B – FINANCE AND OTHER RECEIVABLES The Company’s finance and other receivables include the following: December 31 December 31 2023 2022 Retail loans $ 5,028.2 $ 4,627.0 Retail financing leases 1,710.4 1,433.5 Dealer wholesale financing 1,953.3 1,093.2 Dealer master notes 509.2 377.0 Operating lease receivables and other 65.3 49.4 9,266.4 7,580.1 Less allowance for credit losses: Loans and leases ( 58.6 ) ( 59.7 ) Dealer wholesale financing ( 1.0 ) ( 1.0 ) Operating lease receivables and other ( 1.4 ) ( 1.0 ) $ 9,205.4 $ 7,518.4 Annual minimum payments due on loans and finance leases and a reconciliation of the undiscounted cash flows to the amortized cost basis of finance leases are as follows: Loans Finance Leases 2024 $ 1,795.9 $ 519.7 2025 1,318.6 446.1 2026 1,063.1 350.7 2027 798.3 291.0 2028 434.4 170.2 Thereafter 127.1 97.3 $ 5,537.4 1,875.0 Unguaranteed residual values 57.6 Unearned interest on finance leases ( 222.2 ) Amortized cost basis of finance leases $ 1,710.4 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 $ 31.6 and $ 19.3 as of December 31, 2023 and 2022, respectively. Interest income recognized on finance leases was $ 77.8 and $ 59.3 for the years ended December 31, 2023 and 2022, respectively. Estimated residual values included with finance leases amounted to $ 57.6 in 2023 and $ 60.5 in 2022. Experience indicates substantially all of dealer wholesale financing will be repaid within one year. In addition, collection experience indicates that some loans, leases and other finance receivables will be paid prior to contract maturity, while other may be extended or modified. 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 retail accounts of customers 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. 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 ) 8.0 .2 8.1 Charge-offs ( 9.8 ) ( 9.8 ) Recoveries .8 .2 1.0 Balance at December 31 $ 1.0 $ 1.7 $ 56.9 $ 1.4 $ 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 ( 4.7 ) ( 4.7 ) Charge-offs ( 1.6 ) ( .1 ) ( 1.7 ) Recoveries 2.4 2.4 Balance at December 31 $ 1.0 $ 1.8 $ 57.9 $ 1.0 $ 61.7 2021 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 1.3 $ 7.5 $ 57.7 $ 1.7 $ 68.2 Provision for losses ( .3 ) ( 1.0 ) ( .9 ) ( 2.2 ) Charge-offs ( 2.5 ) ( 2.5 ) Recoveries 1.9 .3 2.2 Balance at December 31 $ 1.0 $ 6.5 $ 57.1 $ 1.1 $ 65.7 * 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 December 31, 2023 and 2022. The Company retains as collateral a security interest in the related equipment. There is no single customer or dealer representing over 10 % of Interest and other revenues for the years ended December 31, 2023, 2022 and 2021. 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 December 31, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Amortized Cost Basis: Dealer: Wholesale: Performing $ 1,951.4 $ 1,951.4 Watch 1.9 1.9 $ 1,953.3 $ 1,953.3 Retail: Performing $ 280.7 $ 677.3 $ 467.2 $ 267.6 $ 135.2 $ 146.3 $ 106.6 $ 2,080.9 $ 280.7 $ 677.3 $ 467.2 $ 267.6 $ 135.2 $ 146.3 $ 106.6 $ 2,080.9 Total Dealer $ 2,234.0 $ 677.3 $ 467.2 $ 267.6 $ 135.2 $ 146.3 $ 106.6 $ 4,034.2 Customer Retail: Fleet: Performing $ 1,967.2 $ 1,244.9 $ 725.3 $ 453.3 $ 151.5 $ 38.9 $ 4,581.1 Watch 24.2 16.6 3.3 2.0 .5 .9 47.5 At-risk 2.4 4.0 4.5 2.0 .6 .1 13.6 $ 1,993.8 $ 1,265.5 $ 733.1 $ 457.3 $ 152.6 $ 39.9 $ 4,642.2 Owner/Operator: Performing $ 151.8 $ 140.5 $ 130.5 $ 66.3 $ 24.5 $ 4.0 $ 517.6 Watch .9 1.9 1.1 .5 .2 4.6 At-risk .6 .8 .8 .2 .1 2.5 $ 153.3 $ 143.2 $ 132.4 $ 67.0 $ 24.8 $ 4.0 $ 524.7 Total Customer Retail $ 2,147.1 $ 1,408.7 $ 865.5 $ 524.3 $ 177.4 $ 43.9 $ 5,166.9 Total $ 2,234.0 $ 2,824.4 $ 1,875.9 $ 1,133.1 $ 659.5 $ 323.7 $ 150.5 $ 9,201.1 At December 31, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Gross Charge-Offs: Customer Retail: Fleet $ .5 $ 2.4 $ .8 $ .2 $ 3.8 $ 7.7 Owner/Operator .2 .7 .8 .2 $ .2 2.1 Total $ .7 $ 3.1 $ 1.6 $ .4 $ 3.8 $ .2 $ 9.8 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 December 31, 2023 Wholesale Retail Fleet Operator Total Current and up to 30 days past-due $ 1,953.3 $ 2,080.9 $ 4,589.2 $ 518.2 $ 9,141.6 31 – 60 days past-due 45.3 4.8 50.1 Greater than 60 days past-due 7.7 1.7 9.4 $ 1,953.3 $ 2,080.9 $ 4,642.2 $ 524.7 $ 9,201.1 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 for finance receivables that are on non-accrual status is as follows: Dealer Customer Retail Owner/ At December 31, 2023 Wholesale Retail Fleet Operator Total Amortized cost basis with a specific reserve $ 8.2 $ 1.8 $ 10.0 Amortized cost basis with no specific reserve 5.3 .8 6.1 Total $ 13.5 $ 2.6 $ 16.1 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 Total $ 8.1 $ 1.1 $ 9.2 Interest income recognized on a cash basis for finance receivables that are on non-accrual status is as follows: 2023 2022 2021 Fleet $ .5 $ .6 $ 1.2 Owner/Operator .2 .1 .1 $ .7 $ .7 $ 1.3 Customers Experiencing Financial Difficulty The Company adopted ASU 2022-02 on January 1, 20 23. The amortized cost basis of finance receivables that were modified with customers experiencing financial difficulty was $ 3.1 and represented less than .1 % of the total retail portfolio for the year ended December 31, 2023. These modifications provided only insignificant term extensions. The effect on the allowance for credit losses from such modifications was no t significant for the year ended December 31, 2023. All of the finance receivables modified with customers experiencing financial difficulty are current. There were no finance receivables modified with customers experiencing financial difficulty on or after January 1, 2023 that had a payment default in the year ended December 31, 2023. Troubled Debt Restructurings 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 at December 31, 2022. There were no finance receivables modified as TDRs during 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 loans, finance leases and equipment under operating leases. The Company records the vehicles as used truck inventory included in Other assets on the Balance Sheets. The balance of repossessed units at December 31, 2023 and 2022 was $ 18.3 and $ 2.3 , respectively. Proceeds from the sales of repossessed assets were $ 11.5 , $ 6.9 and $ 16.5 for the years ended December 31, 2023, 2022 and 2021, respectively. These amounts are included in Proceeds from disposal 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 Income.

Equipment On Operating Leases

Equipment On Operating Leases	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Equipment On Operating Leases	NOTE C – EQUIPMENT ON OPERATING LEASES Terms of operating leases at origination and the related depreciation generally range from three to five years . The total future annual minimum rental payments to be received for equipment on non-cancelable operating leases beginning January 1, 2024 of $ 255.7 are due as follows: $ 125.3 in 2024, $ 74.2 in 2025, $ 41.3 in 2026, $ 12.4 in 2027 and $ 2.5 in 2028 and thereafter. Depreciation expense related to equipment on operating leases was $ 167.6 , $ 152.9 and $ 237.4 in 2023, 2022 and 2021, respectively. Substantially all equipment on operating leases is manufactured by PACCAR.

Transactions with PACCAR and Af

Transactions with PACCAR and Affiliates	12 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Transactions with PACCAR and Affiliates	NOTE D – 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 years ended December 31, 2023, 2022 and 2021 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 December 31, 2023 and 2022, including balances with foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada, Australia and Brasil, are summarized below: December 31 December 31 2023 2022 Due from PACCAR and affiliates Loans due from PACCAR $ 1,016.0 $ 1,261.0 Loans due from foreign finance affiliates 716.0 627.0 Tax-related receivable due from PACCAR 4.4 Receivables 18.7 12.9 $ 1,750.7 $ 1,905.3 Due to PACCAR and affiliates Tax-related payable due to PACCAR $ 1.9 Payables 56.7 $ 21.8 $ 58.6 $ 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 has issued letters of credit as of December 31, 2023 in the amount of $ .9 on behalf of the Company to guarantee funds for payment to insured franchisees and customers for any future insurance losses. PACCAR charges the Company for certain administrative services it provides. These costs were charged to the Company based upon the Company’s use of the services and PACCAR’s cost. Fees for the services were $ 7.0 in 2023, $ 8.6 in 2022 and $ 8.1 in 2021 and are included in Additional paid-in capital. 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 sheets 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 were $ 3.1 , $ 4.9 and $ 4.3 for the years 2023, 2022 and 2021, respectively, and 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 are based on the actual contribution made on the behalf of participating employees. Expenses incurred by the Company for the defined contribution plan were $ 2.0 in 2023 and $ 1.9 in 2022 and 2021 and are included in Selling, general and administrative expenses.

Stockholder's Equity

Stockholder's Equity	12 Months Ended
	Dec. 31, 2023
Equity [Abstract]
Stockholder's Equity	NOTE E – STOCKHOLDER’S EQUITY Accumulated other comprehensive income (AOCI) of $ 11.0 and $ 18.4 at December 31, 2023 and 2022, respectively, is comprised of the unrealized net (loss) gain on derivative contracts, net of taxes. Changes in and reclassifications out of AOCI during 2023, 2022 and 2021 are as follows: 2023 2022 2021 Balance at beginning of year $ 18.4 $ ( 1.9 ) $ ( 25.3 ) Amounts recorded in AOCI Unrealized (loss) gain on derivative contracts ( 5.2 ) ( .9 ) 18.7 Income tax effect 1.3 .2 ( 4.6 ) Amounts reclassified out of AOCI Interest and other borrowing costs ( 4.6 ) 27.9 12.4 Income taxes 1.1 ( 6.9 ) ( 3.1 ) Net other comprehensive (loss) income ( 7.4 ) 20.3 23.4 Balance at end of year $ 11.0 $ 18.4 $ ( 1.9 )

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	NOTE F – DERIVATIVE FINANCIAL INSTRUMENTS 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 December 31, 2023, the notional amount of these contracts totaled $ 314.6 with amounts expiring over the next 8.9 years. Notional maturities for all interest-rate contracts are nil for 2024, $ 80.0 for 2025, $ 30.0 for 2026, $ 139.1 for 2027, $ 8.5 for 2028 and $ 57.0 thereafter. The following table presents the balance sheet classification, fair value and gross and net amounts of derivative financial instruments: As of December 31 2023 2022 Interest-rate contracts: Assets Liabilities Assets Liabilities Other assets $ 1.2 $ 4.0 Accounts payable, accrued expenses and other $ 5.2 $ 19.7 Gross amounts recognized in Balance Sheets 1.2 5.2 4.0 19.7 Less amounts not offset in financial instruments ( .4 ) ( .4 ) ( 1.1 ) ( 1.1 ) Pro forma net amount $ .8 $ 4.8 $ 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 8.9 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 December 31, 2023 that is estimated to be reclassified to interest expense in the following 12 months if interest rates remain unchanged is approximately $ 7.7 , 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: December 31 December 31 2023 2022 Medium-term notes Carrying amount of hedged liabilities $ 76.4 $ 215.8 Cumulative basis adjustment included in the carrying amount ( 3.6 ) ( 19.2 ) The above table excludes the cumulative basis adjustments on discontinued hedge relationships of $( 10.3 ) and $( 4.8 ) as of December 31, 2023 and 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 Income: As of December 31 2023 2022 (Gain) loss on fair value hedges Derivatives $ ( 15.5 ) $ 8.9 Hedged items 22.6 ( 8.1 ) (Gain) loss on cash flow hedges Reclassified from AOCI into income ( 4.6 ) 27.9 $ 2.5 $ 28.7

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Borrowings	NOTE G – BORROWINGS The carrying amounts of borrowings are summarized as follows: As of December 31 2023 2022 Effective Effective Rate Borrowings Rate Borrowings Commercial paper 5.3 % $ 2,842.4 4.1 % $ 1,657.7 Medium-term notes 3.2 % 6,071.7 2.1 % 5,814.5 3.9 % $ 8,914.1 2.6 % $ 7,472.2 Commercial paper and medium-term notes borrowings were $ 8,914.1 and $ 7,472.2 at December 31, 2023 and 2022, respectively. Unamortized debt issuance costs, unamortized discounts and the net effect of fair value hedges were $( 37.8 ) and $( 38.6 ) at December 31, 2023 and 2022, respectively. The effective rate is the weighted average rate as of December 31, 2023 and includes the effects of interest rate swap agreements. The annual principal maturities of the borrowings are as follows: Commercial Term Paper Notes Total 2024 $ 2,851.9 $ 1,800.0 $ 4,651.9 2025 1,700.0 1,700.0 2026 1,700.0 1,700.0 2027 300.0 300.0 2028 600.0 600.0 $ 2,851.9 $ 6,100.0 $ 8,951.9 Interest paid on borrowings was $ 239.4 , $ 126.6 and $ 118.2 in 2023, 2022 and 2021, respectively. In November 2021, the Company filed a shelf registration statement under the Securities Act of 1933. In January 2024, the Company issued $ 600.0 of medium-term notes under this registration. The registration expires in November 2024 and does not limit the principal amount of debt securities that may be issued during the period. See “Note D – Transactions with PACCAR and Affiliates” for discussion of borrowings from PACCAR.

Credit Arrangements

Credit Arrangements	12 Months Ended
	Dec. 31, 2023
Text Block [Abstract]
Credit Arrangements	NOTE H – CREDIT ARRANGEMENTS The Company participated with PACCAR and certain other PACCAR affiliates in committed bank facilities of $ 3,000.0 at December 31, 2023. Of this amount, $ 1,000.0 expires in June 2024 , $ 1,000.0 expires in June 2026 and $ 1,000.0 expires in June 2028 . PACCAR and the Company intend to replace these credit facilities on or before expiration with facilities of similar amounts and duration. Of the $ 3,000.0 credit facilities, $ 2,268.0 is available for use by the Company and/or PACCAR and other non-U.S. PACCAR financial subsidiaries. The remaining $ 732.0 is allocated to PACCAR and other non-U.S. PACCAR financial subsidiaries. These credit facilities are used to provide backup liquidity for the Company’s commercial paper and maturing medium-term notes. The Company is liable only for its own borrowings under these credit facilities. There were no borrowings under these credit facilities in 2023.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	NOTE I – INCOME TAXES The Company’s effective income tax rate was 23.2 % for 2023 compared to 24.3 % for 2022, reflecting changes in the state tax expense during 2023 as compared to 2022. The components of the Company’s provision for income taxes include the following: Year ended December 31 2023 2022 2021 Current provision Federal $ 19.1 $ 34.7 $ 219.8 State 11.9 12.8 30.3 31.0 47.5 250.1 Deferred provision (benefit) Federal 18.0 17.6 ( 180.4 ) State ( 6.8 ) ( 2.0 ) ( 21.5 ) 11.2 15.6 ( 201.9 ) Total provision for income taxes $ 42.2 $ 63.1 $ 48.2 A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: Year ended December 31 2023 2022 2021 Statutory rate 21.0 % 21.0 % 21.0 % Effect of state 2.2 % 3.3 % 3.6 % 23.2 % 24.3 % 24.6 % Cash paid for income taxes was nil in 2023, 2022 and 2021. PACCAR Inc pays all federal and state income taxes on behalf of the Company. The tax effects of temporary differences representing deferred tax assets and liabilities are as follows: December 31 December 31 2023 2022 Deferred tax assets: Allowance for losses on receivables $ 14.9 $ 15.2 Other 7.6 5.3 Deferred tax liabilities: Depreciation ( 495.7 ) ( 485.1 ) Other ( 3.1 ) ( 2.9 ) Net deferred tax liability $ ( 476.3 ) $ ( 467.5 )

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE J – 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: December 31 December 31 Level 2 2023 2022 Assets: Used trucks held for sale $ 29.7 $ .2 Derivative contracts 1.2 4.0 Liabilities: Derivative contracts $ 5.2 $ 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 December 31, 2023 and 2022 were $ 5.7 and nil during 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 financing 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: December 31 December 31 2023 2022 Carrying Fair Carrying Fair Amount Value Amount Value Assets: Due from PACCAR $ 956.0 $ 941.7 $ 1,101.0 $ 1,048.2 Due from foreign finance affiliates 559.0 536.5 554.0 516.6 Fixed rate loans 5,380.4 5,324.4 4,779.4 4,566.4 Liabilities: Fixed rate debt $ 6,084.5 $ 6,005.8 $ 5,826.1 $ 5,559.0

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE K – COMMITMENTS AND CONTINGENCIES The Company is a party to various routine legal proceedings incidental to its business involving the collection of accounts and other matters. The Company believes that any reasonably possible range of losses with respect to these matters in addition to amounts accrued is not material to the Company’s financial statements. At December 31, 2023, the Company has loan and lease commitments of $ 396.6 expiring within one year . These commitments represent commitments to fund new retail loan and lease contracts.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Description of Operations and Basis of Presentation	Description of Operations and 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. Due to the nature of the Company’s business, customers are concentrated in the transportation industry throughout the United States. Generally, all receivables are collateralized by the equipment being financed. The risk of credit losses related to this concentration has been considered in establishing the allowance for credit losses.
Use of Estimates	Use of Estimates : The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Finance and Other Receivables	Finance and Other Receivables: Loans – Loans represent fixed or floating rate loans to customers or dealers collateralized by the vehicles purchased and are recorded at amortized cost. Finance leases – Finance leases are sales-type finance leases, which lease equipment to retail customers and dealers. These leases are reported as the sum of minimum lease payments receivable and estimated residual value of the property subject to the contracts, reduced by unearned interest. Dealer wholesale financing – Dealer wholesale financing is floating-rate wholesale loans to Kenworth and Peterbilt dealers for new and used trucks and are recorded at amortized cost. The loans are collateralized by the trucks being financed. Operating lease receivables and other – Operating lease receivables and other include monthly rentals due on operating leases, unamortized loan and lease origination costs, interest on loans and other amounts due within one year in the normal course of business.
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 three months in 2023 and 2022 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at December 31, 2023 or 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 data 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.
Revenue Recognition	Revenue Recognition : Interest income from finance and other receivables is recognized using the interest method. Certain loan and lease origination costs are deferred and amortized to interest income over the expected life of the contracts, generally 36 to 60 months , using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. 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 December 31, 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. The Company recognizes revenue on the sale of used trucks acquired from PACCAR truck division customers as part of new truck sales packages when the used trucks are invoiced and delivered to a customer.
Equipment on Operating Leases	Equipment on Operating Leases : Equipment on operating leases is recorded at cost and is depreciated on the straight-line basis to its estimated residual value. Residual values are reviewed regularly and adjusted if market conditions warrant.
Derivative Financial Instruments	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 $ 1.2 at December 31, 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.
Income Taxes	Income Taxes : 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, and any related tax liability is paid by the Company to PACCAR and any related tax benefit is paid by PACCAR to the Company. 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. As of December 31, 2023, the United States Internal Revenue Service has completed examinations of PACCAR’s tax returns for all years through 2016. PACCAR’s tax returns remain subject to examination in other jurisdictions for the years ranging from 2012 through 2023 .
Preferred Stock	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.
New Accounting Pronouncements	New Accounting Pronouncements: In December 2023, Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740) : Improvements to Income Tax Disclosures . The amendments in this ASU require entities to disclose certain, specific categories within the rate reconciliation and enhance disclosures regarding income taxes paid and income tax expense. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments in this ASU should be applied on a prospective basis; however, retrospective application is permitted. The implementation of this ASU will result in additional disclosures and will no t have an impact on the Company's financial statements. 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

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
FASB Adopted and Issued Standards	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 (Tables)	12 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Finance and Other Receivables	The Company’s finance and other receivables include the following: December 31 December 31 2023 2022 Retail loans $ 5,028.2 $ 4,627.0 Retail financing leases 1,710.4 1,433.5 Dealer wholesale financing 1,953.3 1,093.2 Dealer master notes 509.2 377.0 Operating lease receivables and other 65.3 49.4 9,266.4 7,580.1 Less allowance for credit losses: Loans and leases ( 58.6 ) ( 59.7 ) Dealer wholesale financing ( 1.0 ) ( 1.0 ) Operating lease receivables and other ( 1.4 ) ( 1.0 ) $ 9,205.4 $ 7,518.4
Annual Minimum Payments Due on Finance Leases and Reconciliation of Undiscounted Cash Flows to Amortized Cost Basis of Finance Leases	Annual minimum payments due on loans and finance leases and a reconciliation of the undiscounted cash flows to the amortized cost basis of finance leases are as follows: Loans Finance Leases 2024 $ 1,795.9 $ 519.7 2025 1,318.6 446.1 2026 1,063.1 350.7 2027 798.3 291.0 2028 434.4 170.2 Thereafter 127.1 97.3 $ 5,537.4 1,875.0 Unguaranteed residual values 57.6 Unearned interest on finance leases ( 222.2 ) Amortized cost basis of finance leases $ 1,710.4
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 ) 8.0 .2 8.1 Charge-offs ( 9.8 ) ( 9.8 ) Recoveries .8 .2 1.0 Balance at December 31 $ 1.0 $ 1.7 $ 56.9 $ 1.4 $ 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 ( 4.7 ) ( 4.7 ) Charge-offs ( 1.6 ) ( .1 ) ( 1.7 ) Recoveries 2.4 2.4 Balance at December 31 $ 1.0 $ 1.8 $ 57.9 $ 1.0 $ 61.7 2021 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 1.3 $ 7.5 $ 57.7 $ 1.7 $ 68.2 Provision for losses ( .3 ) ( 1.0 ) ( .9 ) ( 2.2 ) Charge-offs ( 2.5 ) ( 2.5 ) Recoveries 1.9 .3 2.2 Balance at December 31 $ 1.0 $ 6.5 $ 57.1 $ 1.1 $ 65.7 * Operating lease and other trade receivables.
Finance Receivables by Credit Quality Indicator and Portfolio Class	At December 31, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Amortized Cost Basis: Dealer: Wholesale: Performing $ 1,951.4 $ 1,951.4 Watch 1.9 1.9 $ 1,953.3 $ 1,953.3 Retail: Performing $ 280.7 $ 677.3 $ 467.2 $ 267.6 $ 135.2 $ 146.3 $ 106.6 $ 2,080.9 $ 280.7 $ 677.3 $ 467.2 $ 267.6 $ 135.2 $ 146.3 $ 106.6 $ 2,080.9 Total Dealer $ 2,234.0 $ 677.3 $ 467.2 $ 267.6 $ 135.2 $ 146.3 $ 106.6 $ 4,034.2 Customer Retail: Fleet: Performing $ 1,967.2 $ 1,244.9 $ 725.3 $ 453.3 $ 151.5 $ 38.9 $ 4,581.1 Watch 24.2 16.6 3.3 2.0 .5 .9 47.5 At-risk 2.4 4.0 4.5 2.0 .6 .1 13.6 $ 1,993.8 $ 1,265.5 $ 733.1 $ 457.3 $ 152.6 $ 39.9 $ 4,642.2 Owner/Operator: Performing $ 151.8 $ 140.5 $ 130.5 $ 66.3 $ 24.5 $ 4.0 $ 517.6 Watch .9 1.9 1.1 .5 .2 4.6 At-risk .6 .8 .8 .2 .1 2.5 $ 153.3 $ 143.2 $ 132.4 $ 67.0 $ 24.8 $ 4.0 $ 524.7 Total Customer Retail $ 2,147.1 $ 1,408.7 $ 865.5 $ 524.3 $ 177.4 $ 43.9 $ 5,166.9 Total $ 2,234.0 $ 2,824.4 $ 1,875.9 $ 1,133.1 $ 659.5 $ 323.7 $ 150.5 $ 9,201.1 At December 31, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Gross Charge-Offs: Customer Retail: Fleet $ .5 $ 2.4 $ .8 $ .2 $ 3.8 $ 7.7 Owner/Operator .2 .7 .8 .2 $ .2 2.1 Total $ .7 $ 3.1 $ 1.6 $ .4 $ 3.8 $ .2 $ 9.8 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 December 31, 2023 Wholesale Retail Fleet Operator Total Current and up to 30 days past-due $ 1,953.3 $ 2,080.9 $ 4,589.2 $ 518.2 $ 9,141.6 31 – 60 days past-due 45.3 4.8 50.1 Greater than 60 days past-due 7.7 1.7 9.4 $ 1,953.3 $ 2,080.9 $ 4,642.2 $ 524.7 $ 9,201.1 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 for finance receivables that are on non-accrual status is as follows: Dealer Customer Retail Owner/ At December 31, 2023 Wholesale Retail Fleet Operator Total Amortized cost basis with a specific reserve $ 8.2 $ 1.8 $ 10.0 Amortized cost basis with no specific reserve 5.3 .8 6.1 Total $ 13.5 $ 2.6 $ 16.1 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 Total $ 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 is as follows: 2023 2022 2021 Fleet $ .5 $ .6 $ 1.2 Owner/Operator .2 .1 .1 $ .7 $ .7 $ 1.3

Transactions with PACCAR and _2

Transactions with PACCAR and Affiliates (Tables)	12 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Amounts Outstanding Including Foreign Finance Affiliates	Amounts outstanding at December 31, 2023 and 2022, including balances with foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada, Australia and Brasil, are summarized below: December 31 December 31 2023 2022 Due from PACCAR and affiliates Loans due from PACCAR $ 1,016.0 $ 1,261.0 Loans due from foreign finance affiliates 716.0 627.0 Tax-related receivable due from PACCAR 4.4 Receivables 18.7 12.9 $ 1,750.7 $ 1,905.3 Due to PACCAR and affiliates Tax-related payable due to PACCAR $ 1.9 Payables 56.7 $ 21.8 $ 58.6 $ 21.8

Stockholder's Equity (Tables)

Stockholder's Equity (Tables)	12 Months Ended
	Dec. 31, 2023
Equity [Abstract]
Changes in and Reclassifications out of Accumulated Other Comprehensive Loss	Changes in and reclassifications out of AOCI during 2023, 2022 and 2021 are as follows: 2023 2022 2021 Balance at beginning of year $ 18.4 $ ( 1.9 ) $ ( 25.3 ) Amounts recorded in AOCI Unrealized (loss) gain on derivative contracts ( 5.2 ) ( .9 ) 18.7 Income tax effect 1.3 .2 ( 4.6 ) Amounts reclassified out of AOCI Interest and other borrowing costs ( 4.6 ) 27.9 12.4 Income taxes 1.1 ( 6.9 ) ( 3.1 ) Net other comprehensive (loss) income ( 7.4 ) 20.3 23.4 Balance at end of year $ 11.0 $ 18.4 $ ( 1.9 )

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 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: As of December 31 2023 2022 Interest-rate contracts: Assets Liabilities Assets Liabilities Other assets $ 1.2 $ 4.0 Accounts payable, accrued expenses and other $ 5.2 $ 19.7 Gross amounts recognized in Balance Sheets 1.2 5.2 4.0 19.7 Less amounts not offset in financial instruments ( .4 ) ( .4 ) ( 1.1 ) ( 1.1 ) Pro forma net amount $ .8 $ 4.8 $ 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: December 31 December 31 2023 2022 Medium-term notes Carrying amount of hedged liabilities $ 76.4 $ 215.8 Cumulative basis adjustment included in the carrying amount ( 3.6 ) ( 19.2 )
Amount of (Income) Expense on Cash Flow and Fair Value Hedges Recognized in Interest and Other Borrowing Costs on Statements of Income	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 Income: As of December 31 2023 2022 (Gain) loss on fair value hedges Derivatives $ ( 15.5 ) $ 8.9 Hedged items 22.6 ( 8.1 ) (Gain) loss on cash flow hedges Reclassified from AOCI into income ( 4.6 ) 27.9 $ 2.5 $ 28.7

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Summary of Borrowings	The carrying amounts of borrowings are summarized as follows: As of December 31 2023 2022 Effective Effective Rate Borrowings Rate Borrowings Commercial paper 5.3 % $ 2,842.4 4.1 % $ 1,657.7 Medium-term notes 3.2 % 6,071.7 2.1 % 5,814.5 3.9 % $ 8,914.1 2.6 % $ 7,472.2
Summary of Annual Maturities	The annual principal maturities of the borrowings are as follows: Commercial Term Paper Notes Total 2024 $ 2,851.9 $ 1,800.0 $ 4,651.9 2025 1,700.0 1,700.0 2026 1,700.0 1,700.0 2027 300.0 300.0 2028 600.0 600.0 $ 2,851.9 $ 6,100.0 $ 8,951.9

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Components of Provision for Income Taxes	The components of the Company’s provision for income taxes include the following: Year ended December 31 2023 2022 2021 Current provision Federal $ 19.1 $ 34.7 $ 219.8 State 11.9 12.8 30.3 31.0 47.5 250.1 Deferred provision (benefit) Federal 18.0 17.6 ( 180.4 ) State ( 6.8 ) ( 2.0 ) ( 21.5 ) 11.2 15.6 ( 201.9 ) Total provision for income taxes $ 42.2 $ 63.1 $ 48.2
Reconciliation of Statutory U.S. Federal Tax Rate to the Effective Income Tax Rates	A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: Year ended December 31 2023 2022 2021 Statutory rate 21.0 % 21.0 % 21.0 % Effect of state 2.2 % 3.3 % 3.6 % 23.2 % 24.3 % 24.6 %
Deferred Tax Assets and Liabilities	The tax effects of temporary differences representing deferred tax assets and liabilities are as follows: December 31 December 31 2023 2022 Deferred tax assets: Allowance for losses on receivables $ 14.9 $ 15.2 Other 7.6 5.3 Deferred tax liabilities: Depreciation ( 495.7 ) ( 485.1 ) Other ( 3.1 ) ( 2.9 ) Net deferred tax liability $ ( 476.3 ) $ ( 467.5 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 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: December 31 December 31 Level 2 2023 2022 Assets: Used trucks held for sale $ 29.7 $ .2 Derivative contracts 1.2 4.0 Liabilities: Derivative contracts $ 5.2 $ 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: December 31 December 31 2023 2022 Carrying Fair Carrying Fair Amount Value Amount Value Assets: Due from PACCAR $ 956.0 $ 941.7 $ 1,101.0 $ 1,048.2 Due from foreign finance affiliates 559.0 536.5 554.0 516.6 Fixed rate loans 5,380.4 5,324.4 4,779.4 4,566.4 Liabilities: Fixed rate debt $ 6,084.5 $ 6,005.8 $ 5,826.1 $ 5,559.0

Significant Accounting Polici_4

Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)
Accounting Policies [Abstract]
Number of portfolio segments | Segment	2
Receivables more than 90 days past due still accruing	$ 0	$ 0
Interest rate derivative portfolio	$ 1,200,000
Preferred stock dividend percentage	6%
Ownership percentage of PACCAR	100%
Internal Revenue Service (IRS)
Accounting Policies [Abstract]
Income tax examination, description	the United States Internal Revenue Service has completed examinations of PACCAR’s tax returns for all years through 2016. PACCAR’s tax returns remain subject to examination in other jurisdictions for the years ranging from 2012 through 2023.
Earliest Tax Year | Internal Revenue Service (IRS)
Accounting Policies [Abstract]
Tax years subject to examination	2012
Latest Tax Year | Internal Revenue Service (IRS)
Accounting Policies [Abstract]
Tax years subject to examination	2023
Maximum | Finance Leases Financing Receivable
Accounting Policies [Abstract]
Origination costs, amortization period	60 months
Maximum | Loans Receivable
Accounting Policies [Abstract]
Contractual term of regular payment of principal and interest	60 months
Minimum | Finance Leases Financing Receivable
Accounting Policies [Abstract]
Origination costs, amortization period	36 months
Minimum | Loans Receivable
Accounting Policies [Abstract]
Contractual term of regular payment of principal and interest	36 months
Accounting Standards Update 2022-02
Accounting Policies [Abstract]
Change in accounting principle, accounting standards update adoption date	Jan. 01, 2023
Description	Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures
Accounting Standards Update 2023-09
Accounting Policies [Abstract]
Description	Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740)
Change in accounting principle, accounting standards update, immaterial effect	true
Extended Maturity
Accounting Policies [Abstract]
Modifications extended contractual terms	3 months	3 months

The Company Adopted Standards (

The Company Adopted Standards (Detail)	12 Months Ended
	Dec. 31, 2023
Accounting Standards Update 2022-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Description	Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures

Finance and Other Receivables_2

Finance and Other Receivables (Detail) - USD ($) $ in Millions		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retail loans		$ 5,028.2	$ 4,627
Retail financing leases		1,710.4	1,433.5
Dealer wholesale financing		1,953.3	1,093.2
Dealer master notes		509.2	377
Operating lease receivables and other		65.3	49.4
Total portfolio		9,266.4	7,580.1
Less allowance for credit losses		(61)	(61.7)	$ (65.7)	$ (68.2)
Finance and other receivables, net		9,205.4	7,518.4
Loans and Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for credit losses		(58.6)	(59.7)
Dealer | Wholesale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for credit losses		(1)	(1)	(1)	(1.3)
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for credit losses	[1]	$ (1.4)	$ (1)	$ (1.1)	$ (1.7)
[1] Operating lease and other trade receivables.

Annual Minimum Payments Due on

Annual Minimum Payments Due on Finance Leases and Reconciliation of Undiscounted Cash Flows to Amortized Cost Basis of Finance Leases (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Finance Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
2024	$ 519.7
2025	446.1
2026	350.7
2027	291
2028	170.2
Thereafter	97.3
Total	1,875
Unguaranteed residual values	57.6	$ 60.5
Unearned interest on finance leases	(222.2)
Amortized cost basis of finance leases	1,710.4
Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
2024	1,795.9
2025	1,318.6
2026	1,063.1
2027	798.3
2028	434.4
Thereafter	127.1
Total	$ 5,537.4

Finance and Other Receivables -

Finance and Other Receivables - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable, net of allowance for credit losses	$ 31,600,000	$ 19,300,000
Financing Receivable Accrued Interest After Allowance For Credit Loss Statement Of Financial Position Extensible List	Other assets	Other assets
Financing lease, interest income	$ 77,800,000	$ 59,300,000
Number of portfolio segments | Segment	2
Customers in financial difficulty		13,300,000
Effect on the allowance for credit losses	$ 61,000,000	61,700,000	$ 65,700,000	$ 68,200,000
Finance receivables modified as TDRs		0
Repossessed inventory	18,300,000	2,300,000
Proceeds from sales of repossessed assets	11,500,000	$ 6,900,000	$ 16,500,000
Customers Experiencing Financial Difficulty
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customers in financial difficulty	3,100,000
Effect on the allowance for credit losses	0
Finance receivables modified as TDRs	$ 0
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%
Maximum | Financing Receivable | Credit Concentration Risk | Financial Services | Interest and Other Revenues
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers diversification in portfolio	10%	10%	10%
Minimum | Customers Experiencing Financial Difficulty
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable modification to total retail portfolio	0.10%
Finance Leases Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unguaranteed residual values	$ 57,600,000	$ 60,500,000
Customer Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Effect on the allowance for credit losses	$ 56,900,000	$ 57,900,000	$ 57,100,000	$ 57,700,000

Allowance for Credit Losses (De

Allowance for Credit Losses (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		$ 61.7	$ 65.7	$ 68.2
Provision for losses		8.1	(4.7)	(2.2)
Charge-offs		(9.8)	(1.7)	(2.5)
Recoveries		1	2.4	2.2
Ending Balance		61	61.7	65.7
Dealer | Wholesale
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		1	1	1.3
Provision for losses				(0.3)
Ending Balance		1	1	1
Dealer | Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		1.8	6.5	7.5
Provision for losses		(0.1)	(4.7)	(1)
Ending Balance		1.7	1.8	6.5
Customer Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		57.9	57.1	57.7
Provision for losses		8
Charge-offs		(9.8)	(1.6)	(2.5)
Recoveries		0.8	2.4	1.9
Ending Balance		56.9	57.9	57.1
Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	[1]	1	1.1	1.7
Provision for losses	[1]	0.2		(0.9)
Charge-offs	[1]		(0.1)
Recoveries	[1]	0.2		0.3
Ending Balance	[1]	$ 1.4	$ 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	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	$ 2,234	$ 1,299.4
2023	2,824.4	2,449
2022	1,875.9	1,670.9
2021	1,133.1	1,061.3
2020	659.5	667.5
2019	323.7	235.3
Prior	150.5	147.3
Total	9,201.1	7,530.7
Dealer
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	2,234	1,299.4
2023	677.3	546.2
2022	467.2	315.5
2021	267.6	182.7
2020	135.2	214.9
2019	146.3	97.5
Prior	106.6	105
Total	4,034.2	2,761.2
Dealer | Wholesale
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	1,953.3	1,093.2
Total	1,953.3	1,093.2
Dealer | Wholesale | Performing
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	1,951.4	1,087
Total	1,951.4	1,087
Dealer | Wholesale | Watch
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	1.9	6.2
Total	1.9	6.2
Dealer | Retail
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	280.7	206.2
2023	677.3	546.2
2022	467.2	315.5
2021	267.6	182.7
2020	135.2	214.9
2019	146.3	97.5
Prior	106.6	105
Total	2,080.9	1,668
Dealer | Retail | Performing
Financing Receivable Recorded Investment [Line Items]
Revolving Loans	280.7	206.2
2023	677.3	546.2
2022	467.2	315.5
2021	267.6	182.7
2020	135.2	214.9
2019	146.3	97.5
Prior	106.6	105
Total	2,080.9	1,668
Customer Retail
Financing Receivable Recorded Investment [Line Items]
2023	2,147.1	1,902.8
2022	1,408.7	1,355.4
2021	865.5	878.6
2020	524.3	452.6
2019	177.4	137.8
Prior	43.9	42.3
Total	5,166.9	4,769.5
Customer Retail | Gross Charge-Offs
Financing Receivable Recorded Investment [Line Items]
2023	0.7
2022	3.1
2021	1.6
2020	0.4
2019	3.8
Prior	0.2
Total	9.8
Customer Retail | Fleet
Financing Receivable Recorded Investment [Line Items]
2023	1,993.8	1,702.7
2022	1,265.5	1,137.9
2021	733.1	753.7
2020	457.3	395.9
2019	152.6	119.8
Prior	39.9	39.6
Total	4,642.2	4,149.6
Customer Retail | Fleet | Performing
Financing Receivable Recorded Investment [Line Items]
2023	1,967.2	1,698.2
2022	1,244.9	1,130.2
2021	725.3	751.7
2020	453.3	382.6
2019	151.5	113.7
Prior	38.9	38.6
Total	4,581.1	4,115
Customer Retail | Fleet | Watch
Financing Receivable Recorded Investment [Line Items]
2023	24.2	2.9
2022	16.6	1.7
2021	3.3	0.3
2020	2	2.9
2019	0.5	2
Prior	0.9	0.6
Total	47.5	10.4
Customer Retail | Fleet | At-risk
Financing Receivable Recorded Investment [Line Items]
2023	2.4	1.6
2022	4	6
2021	4.5	1.7
2020	2	10.4
2019	0.6	4.1
Prior	0.1	0.4
Total	13.6	24.2
Customer Retail | Fleet | Gross Charge-Offs
Financing Receivable Recorded Investment [Line Items]
2023	0.5
2022	2.4
2021	0.8
2020	0.2
2019	3.8
Total	7.7
Customer Retail | Owner/Operator
Financing Receivable Recorded Investment [Line Items]
2023	153.3	200.1
2022	143.2	217.5
2021	132.4	124.9
2020	67	56.7
2019	24.8	18
Prior	4	2.7
Total	524.7	619.9
Customer Retail | Owner/Operator | Performing
Financing Receivable Recorded Investment [Line Items]
2023	151.8	199.2
2022	140.5	216.8
2021	130.5	124.7
2020	66.3	56.5
2019	24.5	17.9
Prior	4	2.7
Total	517.6	617.8
Customer Retail | Owner/Operator | Watch
Financing Receivable Recorded Investment [Line Items]
2023	0.9	0.5
2022	1.9	0.4
2021	1.1	0.1
2020	0.5
2019	0.2
Total	4.6	1
Customer Retail | Owner/Operator | At-risk
Financing Receivable Recorded Investment [Line Items]
2023	0.6	0.4
2022	0.8	0.3
2021	0.8	0.1
2020	0.2	0.2
2019	0.1	0.1
Total	2.5	$ 1.1
Customer Retail | Owner/Operator | Gross Charge-Offs
Financing Receivable Recorded Investment [Line Items]
2023	0.2
2022	0.7
2021	0.8
2020	0.2
Prior	0.2
Total	$ 2.1

Summary of Amortized Cost Basis

Summary of Amortized Cost Basis of Financing Receivables by Aging Category (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	$ 9,201.1	$ 7,530.7
Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	9,141.6	7,523.2
31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	50.1	2.5
Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	9.4	5
Dealer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	4,034.2	2,761.2
Dealer | Wholesale
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	1,953.3	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	1,953.3	1,093.2
Dealer | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	2,080.9	1,668
Dealer | Retail | Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	2,080.9	1,668
Customer Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	5,166.9	4,769.5
Customer Retail | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	4,642.2	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	4,589.2	4,143.7
Customer Retail | Fleet | 31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	45.3	1.1
Customer Retail | Fleet | Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	7.7	4.8
Customer Retail | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	524.7	619.9
Customer Retail | Owner/Operator | Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	518.2	618.3
Customer Retail | Owner/Operator | 31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	4.8	1.4
Customer Retail | Owner/Operator | 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	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	$ 10	$ 3.1
Amortized cost basis with no specific reserve	6.1	6.1
Total	16.1	9.2
Customer Retail | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	8.2	2
Amortized cost basis with no specific reserve	5.3	6.1
Total	13.5	8.1
Customer Retail | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	1.8	1.1
Amortized cost basis with no specific reserve	0.8
Total	$ 2.6	$ 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	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Interest income recognized on cash basis for finance receivables that are on non-accrual status	$ 0.7	$ 0.7	$ 1.3
Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Interest income recognized on cash basis for finance receivables that are on non-accrual status	0.5	0.6	1.2
Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Interest income recognized on cash basis for finance receivables that are on non-accrual status	$ 0.2	$ 0.1	$ 0.1

Pre-Modification and Post-Modif

Pre-Modification and Post-Modification Amortized Cost Basis (Detail)	12 Months Ended
	Dec. 31, 2022 USD ($)
Financing Receivable, Modifications [Line Items]
Finance receivables modified as TDRs	$ 0

Equipment on Operating Leases -

Equipment on Operating Leases - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Minimum
Operating Leased Assets [Line Items]
Operating lease term	3 years
Maximum
Operating Leased Assets [Line Items]
Operating lease term	5 years
Non Cancelable Operating Leases
Operating Leased Assets [Line Items]
Future annual minimum rental payments	$ 255.7
2024	125.3
2025	74.2
2026	41.3
2027	12.4
2028 and thereafter	2.5
Depreciation expense	$ 167.6	$ 152.9	$ 237.4

Transactions with PACCAR and _3

Transactions with PACCAR and Affiliates - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) Facility	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Related Party Transaction [Line Items]
Required ratio of net earnings available for fixed charges to fixed charges	125%
Letter of credit issued	$ 0.9
Number of facilities leased by company | Facility	5
Selling, general and administrative expenses	$ 64.5	$ 60.7	$ 57.3
Defined benefit pension plan expenses	3.1	4.9	4.3
Defined contribution plan expenses	2	1.9	1.9
Foreign Finance Affiliates
Related Party Transaction [Line Items]
Loans to foreign affiliates, upper limit	750
Related Party
Related Party Transaction [Line Items]
Selling, general and administrative expenses	$ 7	$ 8.6	$ 8.1

Amounts Outstanding Including F

Amounts Outstanding Including Foreign Finance Affiliates (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Accounts Payable and Accrued Liabilities [Abstract]
Due to PACCAR and affiliates	$ 58.6	$ 21.8
Related Party [Member]
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Due from PACCAR and affiliates	1,750.7	1,905.3
Accounts Payable and Accrued Liabilities [Abstract]
Due to PACCAR and affiliates	58.6	21.8
Related Party [Member] | Affiliated Entity [Member]
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Loans due from PACCAR/ foreign affiliates	1,016	1,261
Tax-related receivable due from PACCAR		4.4
Accounts Payable and Accrued Liabilities [Abstract]
Tax-related payable due to PACCAR	1.9
Related Party [Member] | Foreign Finance Affiliates
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Loans due from PACCAR/ foreign affiliates	716	627
Related Party [Member] | Other Affiliates [Member]
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]
Receivables	18.7	12.9
Accounts Payable and Accrued Liabilities [Abstract]
Accounts Payable	$ 56.7	$ 21.8

Stockholder's Equity - Addition

Stockholder's Equity - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Equity [Abstract]
Accumulated other comprehensive income (loss)	$ 11	$ 18.4

Changes in and Reclassification

Changes in and Reclassifications out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 2,042.1	$ 1,916.4
Interest and other borrowing costs	275.7	138.8	$ 124.5
Income taxes	(42.2)	(63.1)	(48.2)
Ending balance	1,931.2	2,042.1	1,916.4
Accumulated Gain (Loss) Net Cash Flow Hedge Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	18.4	(1.9)	(25.3)
Amounts recorded in AOCL related to Unrealized (loss) gain on derivative contracts, before tax	(5.2)	(0.9)	18.7
Amounts recorded in AOCL related to Unrealized (loss) gain on derivative contracts, income tax effect	1.3	0.2	(4.6)
Net other comprehensive income (loss)	(7.4)	20.3	23.4
Ending balance	11	18.4	(1.9)
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	(4.6)	27.9	12.4
Income taxes	$ 1.1	$ (6.9)	$ (3.1)

Derivative Financial Instrume_3

Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Notional amount of interest-rate contracts	$ 314.6
Interest-rate contracts maturity period	8 years 10 months 24 days
Notional maturities for interest-rate contracts 2024	$ 0
Notional maturities for interest-rate contracts 2025	80
Notional maturities for interest-rate contracts 2026	30
Notional maturities for interest-rate contracts 2027	139.1
Notional maturities for interest-rate contracts 2028	8.5
Notional maturities for interest-rate contracts thereafter	$ 57
Maximum length of time for which company is hedging its exposure to the variability in future cash flows	8 years 10 months 24 days
Accumulated net gain on interest rate contracts included in AOCI expected to be reclassified to interest expense in the following 12 months	$ 7.7
Cumulative basis adjustments on discontinued hedge relationships	$ (10.3)	$ (4.8)

Balance Sheet Classification, F

Balance Sheet Classification, Fair Value and Gross and Net Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Assets gross amount recognized in balance sheets	$ 1.2	$ 4
Less amounts not offset in financial instruments	(0.4)	(1.1)
Pro forma net amount	$ 0.8	$ 2.9
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Liabilities gross amount recognized in balance sheets	$ 5.2	$ 19.7
Less amounts not offset in financial instruments	(0.4)	(1.1)
Pro forma net amount	$ 4.8	$ 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	$ 1.2	$ 4
Interest Rate Contract | Accounts Payable, Accrued Expenses and Other
Derivatives, Fair Value [Line Items]
Liabilities gross amount recognized in balance sheets	$ 5.2	$ 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	Dec. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Carrying amount of hedged liabilities	$ 76.4	$ 215.8
Medium-term Notes
Derivative [Line Items]
Cumulative basis adjustment included in the carrying amount	$ (3.6)	$ (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 Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	$ (15.5)	$ 8.9
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest and other borrowing costs	Interest and other borrowing costs
Hedged items	$ 22.6	$ (8.1)
Reclassified from AOCI into income	(4.6)	27.9	$ 12.4
Total (income) and expense	$ 2.5	$ 28.7

Summary of Borrowings (Detail)

Summary of Borrowings (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Effective borrowing rate	3.90%	2.60%
Commercial paper	$ 2,842.4	$ 1,657.7
Medium-term notes	6,071.7	5,814.5
Commercial paper and medium-term notes	$ 8,914.1	$ 7,472.2
Commercial Paper
Debt Instrument [Line Items]
Effective borrowing rate	5.30%	4.10%
Medium-term Notes
Debt Instrument [Line Items]
Effective borrowing rate	3.20%	2.10%

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Commercial paper and medium-term notes		$ 8,914.1	$ 7,472.2
Fair value hedges, unamortized discounts and unamortized debt issuance costs, net		(37.8)	(38.6)
Interest paid on borrowings		$ 239.4	$ 126.6	$ 118.2
Subsequent Event
Debt Instrument [Line Items]
Proceeds from issuance of medium-term notes	$ 600
Medium-term Notes
Debt Instrument [Line Items]
Registration expiration		2024-11

Annual Maturities of Borrowings

Annual Maturities of Borrowings (Detail) $ in Millions	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
2024	$ 4,651.9
2025	1,700
2026	1,700
2027	300
2028	600
Debt, Long-term and Short-term, Combined Amount, Total	8,951.9
Commercial Paper
Debt Instrument [Line Items]
2024	2,851.9
Debt, Long-term and Short-term, Combined Amount, Total	2,851.9
Medium-term Notes
Debt Instrument [Line Items]
2024	1,800
2025	1,700
2026	1,700
2027	300
2028	600
Debt, Long-term and Short-term, Combined Amount, Total	$ 6,100

Credit Arrangements - Additiona

Credit Arrangements - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Line of Credit Facility [Line Items]
Credit facility available amount	$ 3,000
Company and PACCAR and Other non-U.S. PACCAR Financial Subsidiaries
Line of Credit Facility [Line Items]
Credit facility available amount	2,268
PACCAR and Other non-U.S. PACCAR Financial Subsidiaries
Line of Credit Facility [Line Items]
Credit facility available amount	732
Committed bank facility
Line of Credit Facility [Line Items]
Line of credit, maximum capacity	3,000
Committed bank facility | Matures in June 2024
Line of Credit Facility [Line Items]
Line of credit, maximum capacity	$ 1,000
Line of credit, maturity date	2024-06
Committed bank facility | Matures in June 2026
Line of Credit Facility [Line Items]
Line of credit, maximum capacity	$ 1,000
Line of credit, maturity date	2026-06
Committed bank facility | Matures in June 2028
Line of Credit Facility [Line Items]
Line of credit, maximum capacity	$ 1,000
Line of credit, maturity date	2028-06

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	23.20%	24.30%	24.60%

Components of Provision for Inc

Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current provision
Federal	$ 19.1	$ 34.7	$ 219.8
State	11.9	12.8	30.3
Current Income Tax Expense (Benefit), Total	31	47.5	250.1
Deferred provision (benefit)
Federal	18	17.6	(180.4)
State	(6.8)	(2)	(21.5)
Deferred taxes	11.2	15.6	(201.9)
Total provision for income taxes	$ 42.2	$ 63.1	$ 48.2

Reconciliation of Statutory U.S

Reconciliation of Statutory U.S. Federal Tax Rate to the Effective Income Tax Rates (Detail)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Statutory rate	21%	21%	21%
Effect of state	2.20%	3.30%	3.60%
Effective income tax rate	23.20%	24.30%	24.60%

Deferred Tax Assets and Liabili

Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Allowance for losses on receivables	$ 14.9	$ 15.2
Other	7.6	5.3
Deferred tax liabilities:
Depreciation	(495.7)	(485.1)
Other	(3.1)	(2.9)
Net deferred tax liability	$ (476.3)	$ (467.5)

Assets and Liabilities Fair Val

Assets and Liabilities Fair Value Measurements (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Assets:
Derivative contracts	$ 1.2	$ 4
Liabilities:
Derivative contracts	5.2	19.7
Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring
Assets:
Used trucks held for sale	29.7	0.2
Fair Value, Inputs, Level 2 | Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets:
Derivative contracts	1.2	4
Liabilities:
Derivative contracts	$ 5.2	$ 19.7

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Trucks Inventory
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Used truck impairments	$ 5.7	$ 0

Carrying Amount and Fair Value

Carrying Amount and Fair Value for Fixed-Rate Loans and Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Assets:
Due from PACCAR and affiliates	$ 1,750.7	$ 1,905.3
Carrying Amount
Assets:
Fixed rate loans	5,380.4	4,779.4
Liabilities:
Fixed rate debt	6,084.5	5,826.1
Carrying Amount | Related Party
Assets:
Due from PACCAR and affiliates	956	1,101
Carrying Amount | Foreign Finance Affiliates
Assets:
Due from PACCAR and affiliates	559	554
Fair Value
Assets:
Fixed rate loans	5,324.4	4,566.4
Liabilities:
Fixed rate debt	6,005.8	5,559
Fair Value | Related Party
Assets:
Due from PACCAR and affiliates	941.7	1,048.2
Fair Value | Foreign Finance Affiliates
Assets:
Due from PACCAR and affiliates	$ 536.5	$ 516.6

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Other outstanding commitments to fund new loan and lease transactions	$ 396.6
Commitments expiration term	1 year