Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'PACCAR FINANCIAL CORP | ' |
Entity Central Index Key | '0000731288 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 145,000 |
Statements_of_Comprehensive_In
Statements of Comprehensive Income and Retained Earnings (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Interest and fee income | $52 | $51.90 | $154.40 | $146.70 | |
Operating lease and rental revenues | 75.8 | 67 | 216.9 | 191.4 | |
Used truck sales and other revenues | 7.9 | 9.8 | 37.9 | 28.7 | |
TOTAL INTEREST AND OTHER REVENUE | 135.7 | 128.7 | 409.2 | 366.8 | |
Interest and other borrowing costs | 15.8 | 16.5 | 48.5 | 47.1 | |
Depreciation and other rental expenses | 61 | 55.7 | 175.4 | 155.4 | |
Cost of used truck sales and other expenses | 5.7 | 9.2 | 33.6 | 24.5 | |
Selling, general and administrative expenses | 10.8 | 10.2 | 32.2 | 32.7 | |
Provision for losses on receivables | 1.5 | 1.6 | 5.9 | 5.4 | |
TOTAL EXPENSES | 94.8 | 93.2 | 295.6 | 265.1 | |
INCOME BEFORE INCOME TAXES | 40.9 | 35.5 | 113.6 | 101.7 | |
Income taxes | 15.5 | 13.5 | 43.1 | 40 | |
NET INCOME | 25.4 | 22 | 70.5 | 61.7 | |
COMPREHENSIVE INCOME | 25.6 | 21 | 74.4 | 60.7 | |
RETAINED EARNINGS AT BEGINNING OF PERIOD | 740.5 | 651.4 | 695.4 | [1] | 611.7 |
RETAINED EARNINGS AT END OF PERIOD | $765.90 | $673.40 | $765.90 | $673.40 | |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. |
Balance_Sheets
Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash | $34.80 | $26.60 | [1] |
Finance and other receivables, net of allowance for losses (2013 - $55.3 and 2012 - $52.8) | 4,334.10 | 4,259.10 | [1] |
Due from PACCAR and affiliates | 1,346.20 | 1,049.80 | [1] |
Equipment on operating leases, net of accumulated depreciation (2013 - $438.2 and 2012 - $355.3) | 1,142 | 1,042.20 | [1] |
Other assets | 152.3 | 160 | [1] |
TOTAL ASSETS | 7,009.40 | 6,537.70 | [1] |
LIABILITIES | ' | ' | |
Accounts payable, accrued expenses and other | 186.8 | 170.3 | [1] |
Due to PACCAR and affiliates | 240.8 | 253.1 | [1] |
Commercial paper | 1,275.70 | 1,819.60 | [1] |
Medium-term notes | 3,599.80 | 2,701.10 | [1] |
Deferred taxes and other liabilities | 791.2 | 755.7 | [1] |
TOTAL LIABILITIES | 6,094.30 | 5,699.80 | [1] |
STOCKHOLDER'S EQUITY | ' | ' | |
Preferred stock, par value $100 per share, 6% noncumulative and nonvoting, 450,000 shares authorized, 310,000 shares issued and outstanding | 31 | 31 | [1] |
Common Stock, par value $100 per share, 200,000 shares authorized, 145,000 shares issued and outstanding | 14.5 | 14.5 | [1] |
Additional paid-in capital | 107.5 | 104.7 | [1] |
Retained earnings | 765.9 | 695.4 | [1] |
Accumulated other comprehensive loss | -3.8 | -7.7 | [1] |
TOTAL STOCKHOLDER'S EQUITY | 915.1 | 837.9 | [1] |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $7,009.40 | $6,537.70 | [1] |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, except Share data, unless otherwise specified | |||
Finance and other receivables, allowance for losses | $55.30 | $52.80 | [1] |
Equipment on operating leases, accumulated depreciation | $438.20 | $355.30 | [1] |
Preferred stock, par value | $100 | $100 | [1] |
Preferred stock, noncumulative and nonvoting | 6.00% | 6.00% | [1] |
Preferred stock, shares authorized | 450,000 | 450,000 | [1] |
Preferred stock, shares issued | 310,000 | 310,000 | [1] |
Preferred stock, shares outstanding | 310,000 | 310,000 | [1] |
Common Stock, par value | $100 | $100 | [1] |
Common Stock, shares authorized | 200,000 | 200,000 | [1] |
Common Stock, shares issued | 145,000 | 145,000 | [1] |
Common Stock, shares outstanding | 145,000 | 145,000 | [1] |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
OPERATING ACTIVITIES | ' | ' | |
Net income | $70.50 | $61.70 | |
Items included in net income not affecting cash: | ' | ' | |
Depreciation and amortization | 162.3 | 138.7 | |
Provision for losses on receivables | 5.9 | 5.4 | |
Deferred taxes | 33.8 | 20.3 | |
Administrative fees for services from PACCAR | 2.8 | ' | |
Increase (decrease) in payables and other | 26.3 | -66.8 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 301.6 | 159.3 | |
INVESTING ACTIVITIES | ' | ' | |
Finance and other receivables originated | -1,282.70 | -1,454.10 | |
Collections on finance and other receivables | 1,133.10 | 1,042.90 | |
Net decrease (increase) in wholesale receivables | 62.9 | -146 | |
Loans to PACCAR and affiliates | -395.5 | -376 | |
Collections on loans from PACCAR and affiliates | 220.5 | 40 | |
Net increase in other receivables and leases to PACCAR and affiliates | -125.4 | -14.7 | |
Acquisition of equipment on operating leases, primarily from PACCAR | -316.6 | -381 | |
Proceeds from disposal of equipment | 94 | 73.7 | |
Decrease in restricted cash | ' | 15 | |
Acquisition of trucks for lease and other | -39.8 | -51.8 | |
NET CASH USED IN INVESTING ACTIVITIES | -649.5 | -1,252 | |
FINANCING ACTIVITIES | ' | ' | |
Net decrease in commercial paper | -543.9 | -74.4 | |
Proceeds from medium-term notes | 1,450 | 1,349.30 | |
Payments of medium-term notes | -550 | ' | |
Payments to PACCAR | ' | -197 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 356.1 | 1,077.90 | |
NET INCREASE (DECREASE) IN CASH | 8.2 | -14.8 | |
CASH AT BEGINNING OF PERIOD | 26.6 | [1] | 33.2 |
CASH AT END OF PERIOD | $34.80 | $18.40 | |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
NOTE A – Basis of Presentation | |
PACCAR Financial Corp. (the “Company”), is a wholly-owned subsidiary of PACCAR Inc (“PACCAR”). The Company primarily provides financing of PACCAR-manufactured trucks and related equipment sold by authorized dealers. The Company also finances dealer inventories of transportation equipment and franchises Kenworth and Peterbilt dealerships to engage in full-service and finance leasing. The operations of the Company are fundamentally affected by its relationship with PACCAR. | |
The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the financial statements and footnotes included in PACCAR Financial Corp.’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
New Accounting Pronouncements: | |
In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if available under the applicable tax jurisdiction. The ASU is effective for annual periods beginning after December 15, 2013 and interim periods within those annual periods. The Company does not expect the adoption of the ASU to have an impact on its financial statements. | |
In July 2013, the FASB issued ASU 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this ASU permit the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes in addition to U.S. government and London Interbank Offered Rate. The amendments also remove the restriction on using different benchmark rates for similar hedges. The ASU is effective for qualifying new or redesignated hedging relationships entered on or after July 17, 2013. The Company adopted ASU 2013-10 in the third quarter of 2013; the implementation of this amendment did not have an impact on the Company’s financial statements. | |
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires disclosure of additional information about reclassification adjustments from other comprehensive income. The ASU is effective for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. The Company adopted ASU 2013-02 in the first quarter of 2013. The implementation of this amendment resulted in additional disclosures (see Note D – Stockholder’s Equity), but did not have an impact on the Company’s financial statements. | |
In January 2013, the FASB issued ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, an update to ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. The ASUs require entities with derivatives, repurchase agreements and securities borrowing and lending transactions that are either offset on the balance sheet, or subject to a master netting arrangement, to provide expanded disclosures about the nature of the rights of offset. The updated ASU is effective for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. The Company adopted ASU 2013-01 in the first quarter of 2013. The implementation of this amendment resulted in additional disclosures (see Note F – Derivative Financial Instruments), but did not have an impact on the Company’s financial statements. |
Finance_and_Other_Receivables
Finance and Other Receivables | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Finance and Other Receivables | ' | ||||||||||||||||||||
NOTE B – Finance and Other Receivables | |||||||||||||||||||||
The Company’s finance and other receivables include the following: | |||||||||||||||||||||
September 30 | December 31 | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Retail loans | $ | 2,374.30 | $ | 2,242.10 | |||||||||||||||||
Retail direct financing leases | 1,472.40 | 1,451.80 | |||||||||||||||||||
Dealer wholesale financing | 578.8 | 641.7 | |||||||||||||||||||
Dealer master notes | 76.9 | 92.4 | |||||||||||||||||||
Operating lease and other trade receivables | 31.5 | 32.4 | |||||||||||||||||||
Unearned interest on finance leases | (144.5 | ) | (148.5 | ) | |||||||||||||||||
Total portfolio | $ | 4,389.40 | $ | 4,311.90 | |||||||||||||||||
Less allowance for losses: | |||||||||||||||||||||
Loans and leases | (50.9 | ) | (47.8 | ) | |||||||||||||||||
Dealer wholesale financing | (3.1 | ) | (3.9 | ) | |||||||||||||||||
Operating lease and other trade receivables | (1.3 | ) | (1.1 | ) | |||||||||||||||||
Total portfolio, net of allowance for losses | $ | 4,334.10 | $ | 4,259.10 | |||||||||||||||||
Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past-due were accruing interest at September 30, 2013 or December 31, 2012. 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 impaired or on non-accrual status are applied to interest and principal in accordance with the contractual terms. | |||||||||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||
The Company continuously monitors the payment performance of all 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 as a normal part 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. 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. | |||||||||||||||||||||
On average, modifications extended contractual terms by four months in 2013 and in 2012 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||
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. When the Company modifies loans and finance leases for credit reasons and grants a concession, the modifications are classified as troubled debt restructurings (TDRs). 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. When such modifications do occur, they are considered TDRs. | |||||||||||||||||||||
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 direct 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 monthly reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and, in many cases, obtains personal 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 impairment. Finance receivables that are evaluated individually for impairment 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. A finance receivable is impaired if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. In addition, all retail loans and leases which have been classified as TDRs and all customer accounts over 90 days past-due are considered impaired. Generally, impaired accounts are on non-accrual status. Impaired accounts classified as TDRs 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. | |||||||||||||||||||||
Impaired receivables are considered collateral dependent. Large balance retail and all wholesale impaired receivables are individually evaluated to determine the appropriate reserve for losses. The determination of reserves for large balance impaired receivables considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s recorded investment, no reserve is recorded. Small balance impaired receivables with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below. | |||||||||||||||||||||
For finance receivables that are not individually impaired, the Company collectively evaluates and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past-due account data and current market conditions. Information used includes assumptions regarding the likelihood of collecting current and past-due accounts, repossession rates, 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 for 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 as probable based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. 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 incurred 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 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 uncollectable (generally 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 partial charge-offs. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. | |||||||||||||||||||||
For the following credit quality disclosures, finance receivables are classified as dealer wholesale, dealer retail and customer retail segments. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating more than five trucks. All other customer retail accounts are considered owner/operator. Each individual class has similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk. | |||||||||||||||||||||
The allowance for credit losses is summarized as follows: | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
Wholesale | Retail | Retail | Other* | Total | |||||||||||||||||
Balance at January 1 | $ | 3.9 | $ | 10.7 | $ | 37.1 | $ | 1.1 | $ | 52.8 | |||||||||||
Provision for losses | (.8 | ) | 6.4 | 0.3 | 5.9 | ||||||||||||||||
Charge-offs | (5.1 | ) | (.1 | ) | (5.2 | ) | |||||||||||||||
Recoveries | 1.8 | 1.8 | |||||||||||||||||||
Balance at September 30 | $ | 3.1 | $ | 10.7 | $ | 40.2 | $ | 1.3 | $ | 55.3 | |||||||||||
2012 | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
Wholesale | Retail | Retail | Other* | Total | |||||||||||||||||
Balance at January 1 | $ | 3.4 | $ | 9.9 | $ | 44.4 | $ | 1.1 | $ | 58.8 | |||||||||||
Provision for losses | 1.2 | 0.9 | 3.3 | 5.4 | |||||||||||||||||
Charge-offs | (6.7 | ) | (.1 | ) | (6.8 | ) | |||||||||||||||
Recoveries | 1.2 | 1.2 | |||||||||||||||||||
Balance at September 30 | $ | 4.6 | $ | 10.8 | $ | 42.2 | $ | 1 | $ | 58.6 | |||||||||||
* | Operating lease and other trade receivables. | ||||||||||||||||||||
Information regarding finance receivables evaluated and determined individually and collectively is as follows: | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
At September 30, 2013 | Wholesale | Retail | Retail | Total | |||||||||||||||||
Recorded investment for impaired finance receivables evaluated individually | $ | 21.3 | $ | 21.3 | |||||||||||||||||
Allowance for impaired finance receivables determined individually | 2.8 | 2.8 | |||||||||||||||||||
Recorded investment for finance receivables evaluated collectively | $ | 578.8 | $ | 1,196.00 | 2,561.80 | 4,336.60 | |||||||||||||||
Allowance for finance receivables determined collectively | 3.1 | 10.7 | 37.4 | 51.2 | |||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
At December 31, 2012 | Wholesale | Retail | Retail | Total | |||||||||||||||||
Recorded investment for impaired finance receivables evaluated individually | $ | 0.1 | $ | 18.5 | $ | 18.6 | |||||||||||||||
Allowance for impaired finance receivables determined individually | 2.1 | 2.1 | |||||||||||||||||||
Recorded investment for finance receivables evaluated collectively | $ | 641.7 | 1,213.40 | 2,405.80 | 4,260.90 | ||||||||||||||||
Allowance for finance receivables determined collectively | 3.9 | 10.7 | 35 | 49.6 | |||||||||||||||||
The recorded investment for finance receivables that are on non-accrual status is as follows: | |||||||||||||||||||||
September 30 | December 31 | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Dealer: | |||||||||||||||||||||
Wholesale | |||||||||||||||||||||
Retail | $ | 0.1 | |||||||||||||||||||
Customer Retail: | |||||||||||||||||||||
Fleet | $ | 18.5 | 14 | ||||||||||||||||||
Owner/Operator | 2.8 | 4.5 | |||||||||||||||||||
$ | 21.3 | $ | 18.6 | ||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
Impaired loans with no specific reserves were nil and $2.9 at September 30, 2013 and December 31, 2012, respectively. Impaired loans with a specific reserve are summarized below. The impaired loans with specific reserve represent the unpaid principal balance. The recorded investment of impaired loans as of September 30, 2013 and December 31, 2012 was not significantly different than the unpaid principal balance. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At September 30, 2013 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Impaired loans with specific reserve | $ | 15.3 | $ | 2.7 | $ | 18 | |||||||||||||||
Associated allowance | (1.4 | ) | (.7 | ) | (2.1 | ) | |||||||||||||||
Net carrying amount of impaired loans | $ | 13.9 | $ | 2 | $ | 15.9 | |||||||||||||||
Average recorded investment* | $ | 13.8 | $ | 3.7 | $ | 17.5 | |||||||||||||||
* Represents the average during the 12 months ended September 30, 2013. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2012 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Impaired loans with specific reserve | $ | 9.4 | $ | 4.3 | $ | 13.7 | |||||||||||||||
Associated allowance | (.7 | ) | (1.1 | ) | (1.8 | ) | |||||||||||||||
Net carrying amount of impaired loans | $ | 8.7 | $ | 3.2 | $ | 11.9 | |||||||||||||||
Average recorded investment* | $ | 10.9 | $ | 6.1 | $ | 17 | |||||||||||||||
* | Represents the average during the 12 months ended September 30, 2012. | ||||||||||||||||||||
During the period the loans above were considered impaired, interest income recognized on a cash basis is as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Interest income recognized: | |||||||||||||||||||||
Dealer: | |||||||||||||||||||||
Wholesale | |||||||||||||||||||||
Retail | |||||||||||||||||||||
Customer Retail: | |||||||||||||||||||||
Fleet | $ | 0.3 | $ | 0.2 | $ | 1 | $ | 0.4 | |||||||||||||
Owner/Operator | 0.1 | 0.1 | 0.4 | 0.4 | |||||||||||||||||
$ | 0.4 | $ | 0.3 | $ | 1.4 | $ | 0.8 | ||||||||||||||
Credit Quality | |||||||||||||||||||||
The Company’s customers are principally concentrated in the transportation industry in the United States. The Company’s portfolio is diversified over a large number of customers and dealers with no single customer or dealer balance representing over 8% of the total portfolio. The Company retains as collateral a security interest in the related equipment. | |||||||||||||||||||||
At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past-due status and collection experience as there is a meaningful correlation between the past-due status of customers and the risk of loss. | |||||||||||||||||||||
The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high risk. Watch accounts include accounts 31 to 90 days past-due and large accounts that are performing but are considered to be high risk. Watch accounts are not impaired. At-risk accounts are accounts that are impaired, including TDRs, accounts over 90 days past-due and other accounts on non-accrual status. The tables below summarize the Company’s finance receivables by credit quality indicator and portfolio class. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At September 30, 2013 | Wholesale | Retail | Fleet | Owner / | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Performing | $ | 578.8 | $ | 1,189.60 | $ | 2,196.70 | $ | 358.7 | $ | 4,323.80 | |||||||||||
Watch | 6.4 | 6.2 | 0.2 | 12.8 | |||||||||||||||||
At-risk | 18.5 | 2.8 | 21.3 | ||||||||||||||||||
Total | $ | 578.8 | $ | 1,196.00 | $ | 2,221.40 | $ | 361.7 | $ | 4,357.90 | |||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2012 | Wholesale | Retail | Fleet | Owner / | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Performing | $ | 641.7 | $ | 1,207.10 | $ | 2,008.80 | $ | 385.7 | $ | 4,243.30 | |||||||||||
Watch | 6.3 | 10.9 | 0.4 | 17.6 | |||||||||||||||||
At-risk | 0.1 | 14 | 4.5 | 18.6 | |||||||||||||||||
Total | $ | 641.7 | $ | 1,213.50 | $ | 2,033.70 | $ | 390.6 | $ | 4,279.50 | |||||||||||
The tables below summarize 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 | ||||||||||||||||||||
At September 30, 2013 | Wholesale | Retail | Fleet | Owner / | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Current and up to 30 days past-due | $ | 578.8 | $ | 1,196.00 | $ | 2,207.90 | $ | 359.3 | $ | 4,342.00 | |||||||||||
31 – 60 days past-due | 5 | 0.7 | 5.7 | ||||||||||||||||||
Greater than 60 days past-due | 8.5 | 1.7 | 10.2 | ||||||||||||||||||
Total | $ | 578.8 | $ | 1,196.00 | $ | 2,221.40 | $ | 361.7 | $ | 4,357.90 | |||||||||||
Dealer | Retail Customer | ||||||||||||||||||||
At December 31, 2012 | Wholesale | Retail | Fleet | Owner / | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Current and up to 30 days past-due | $ | 641.7 | $ | 1,213.50 | $ | 2,025.90 | $ | 386.9 | $ | 4,268.00 | |||||||||||
31 – 60 days past-due | 2.2 | 0.7 | 2.9 | ||||||||||||||||||
Greater than 60 days past-due | 5.6 | 3 | 8.6 | ||||||||||||||||||
Total | $ | 641.7 | $ | 1,213.50 | $ | 2,033.70 | $ | 390.6 | $ | 4,279.50 | |||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||
The balance of TDRs was $5.2 at September 30, 2013 and $11.0 at December 31, 2012, respectively. At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Fleet | $ | 0.2 | $ | 0.2 | $ | 0.5 | $ | 0.5 | |||||||||||||
Owner/Operator | 0.3 | 0.3 | |||||||||||||||||||
$ | 0.2 | $ | 0.2 | $ | 0.8 | $ | 0.8 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | ||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Fleet | $ | 7.2 | $ | 7.2 | $ | 16 | $ | 16 | |||||||||||||
Owner/Operator | 0.4 | 0.4 | |||||||||||||||||||
$ | 7.2 | $ | 7.2 | $ | 16.4 | $ | 16.4 | ||||||||||||||
The effect on the allowance for credit losses from such modifications was not significant at September 30, 2013 and 2012. | |||||||||||||||||||||
TDRs modified during the previous twelve months that subsequently defaulted (i.e. became more than 30 days past-due) during the period by portfolio class are as follows: | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
30-Sep | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Fleet | $ | 0.3 | $ | 4.8 | |||||||||||||||||
Owner/Operator | |||||||||||||||||||||
$ | 0.3 | $ | 4.8 | ||||||||||||||||||
The $4.8 of fleet redefaults for the nine months ended September 30, 2012 is from one customer. This account was supported by $3.0 of collateral and a specific reserve of $1.8. The TDRs that subsequently defaulted did not significantly impact the Company’s allowance for credit losses at September 30, 2013 and 2012. | |||||||||||||||||||||
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 on operating lease. The Company records the vehicles as used truck inventory which is included in Other assets on the Balance Sheets. The balance of repossessed inventory at September 30, 2013 and December 31, 2012 was $2.2 and $10.4, respectively. Proceeds from the sales of repossessed assets were $13.8 and $8.3 for the nine months ended September 30, 2013 and 2012, respectively. These amounts are included in Proceeds from disposal of equipment on the Statements of Cash Flows. Write-downs of repossessed equipment on operating leases are recorded as impairments and included in Depreciation and other rental expense on the Statements of Comprehensive Income and Retained Earnings. | |||||||||||||||||||||
Unamortized Loan Origination Costs | |||||||||||||||||||||
The unamortized loan origination costs at September 30, 2013 and December 31, 2012 were $12.3 and $12.2, respectively. This amount is included in Other assets on the Balance Sheets. |
Transactions_with_PACCAR_and_A
Transactions with PACCAR and Affiliates | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Transactions with PACCAR and Affiliates | ' | ||||||||
NOTE C – Transactions with PACCAR and Affiliates | |||||||||
The Company and PACCAR are parties to a Support Agreement that obligates PACCAR to provide, when required, financial assistance to the Company to ensure that the Company maintains a ratio of net earnings available for fixed charges to fixed charges (as defined in the Support Agreement) of at least 1.25 to 1 for any fiscal year. The required ratio for the nine months ended September 30, 2013 and full year 2012 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 various 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 and Australia, and any resulting currency exposure is fully hedged. 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 and Australia. The Company will not make loans to the foreign affiliates in excess of the equivalent of $500.0 United States dollars, unless the amount in excess of such limit is guaranteed by PACCAR. The Company periodically reviews the funding alternatives for these affiliates, and these limits may be revised in the future. | |||||||||
Amounts outstanding at September 30, 2013 and December 31, 2012, including foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Australia and Canada are summarized below: | |||||||||
September 30 | December 31 | ||||||||
2013 | 2012 | ||||||||
Due from PACCAR and affiliates: | |||||||||
Loans due from PACCAR | $ | 650.5 | $ | 428.4 | |||||
Loans due from foreign finance affiliates | 431 | 360.6 | |||||||
Direct financing leases due from affiliate | 13.5 | 13.9 | |||||||
Receivables | 251.2 | 246.9 | |||||||
Total | $ | 1,346.20 | $ | 1,049.80 | |||||
Due to PACCAR and affiliates: | |||||||||
Loans due to PACCAR | $ | 218 | $ | 218 | |||||
Payables | 22.8 | 35.1 | |||||||
Total | $ | 240.8 | $ | 253.1 | |||||
The Company provides direct financing leases to a dealer location operated by an affiliate of PACCAR. | |||||||||
Loans due to PACCAR were $218.0 at September 30, 2013 and December 31, 2012. The $218.0 loan due to PACCAR has an effective fixed interest rate of 6.88% and matures in February 2014. | |||||||||
PACCAR charges the Company for certain administrative services it provides. These costs were charged to the Company based upon the Company’s specific use of the services and PACCAR’s cost. Management considers these charges reasonable and similar to the costs that would be incurred if the Company were on a stand-alone basis. | |||||||||
There were no dividends declared or paid during the first nine months of 2013 and 2012, respectively. | |||||||||
The Company’s principal office is located in the corporate headquarters building of PACCAR (owned by PACCAR). The Company also leases office space from one facility owned by PACCAR and five facilities leased 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 are included in selling, general and administrative expenses. | |||||||||
The Company’s employees and PACCAR employees are also covered by a defined contribution plan, sponsored by PACCAR. Expenses incurred by the Company for the defined contribution plan benefits are based on the actual contribution made on the behalf of participating employees and are included in selling, general and administrative expenses. |
Stockholders_Equity
Stockholder's Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholder's Equity | ' | ||||||||||||||||
NOTE D – Stockholder’s Equity | |||||||||||||||||
Preferred Stock | |||||||||||||||||
The Company’s Articles of Incorporation provide that the 6% noncumulative, nonvoting preferred stock (100% owned by PACCAR) is redeemable only at the option of the Company’s Board of Directors. | |||||||||||||||||
Comprehensive Income | |||||||||||||||||
The components of comprehensive income are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 25.4 | $ | 22 | $ | 70.5 | $ | 61.7 | |||||||||
Comprehensive income | |||||||||||||||||
Derivative contracts increase (decrease) | 0.2 | (1.0 | ) | 3.9 | (1.0 | ) | |||||||||||
Net comprehensive income (loss) | 0.2 | (1.0 | ) | 3.9 | (1.0 | ) | |||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 25.6 | $ | 21 | $ | 74.4 | $ | 60.7 | |||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
Accumulated other comprehensive loss (AOCI) of $3.8 and $7.7 at September 30, 2013 and December 31, 2012, respectively, is comprised of the unrealized net loss on derivative contracts, net of taxes. Changes in and reclassifications out of AOCI during the nine months ended September 30, 2013 are as follows: | |||||||||||||||||
Unrealized Gains | |||||||||||||||||
(Losses) on Derivative | |||||||||||||||||
Contracts | |||||||||||||||||
Balance at December 31, 2012 | $ | (7.7 | ) | ||||||||||||||
Amounts recorded in AOCI | |||||||||||||||||
Unrealized gain on derivative contracts | 0.2 | ||||||||||||||||
Income tax effect | (.1 | ) | |||||||||||||||
Amounts reclassified out of AOCI | |||||||||||||||||
Interest and other borrowing costs | 6.2 | ||||||||||||||||
Income taxes | (2.4 | ) | |||||||||||||||
Net other comprehensive income | 3.9 | ||||||||||||||||
Balance at September 30, 2013 | $ | (3.8 | ) | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
NOTE E – Fair Value Measurements | |||||||||||||||||
Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below: | |||||||||||||||||
Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment. | |||||||||||||||||
Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. | |||||||||||||||||
There were no transfers of assets or liabilities between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2013. The Company’s policy is to recognize transfers between levels at the end of the reporting period. | |||||||||||||||||
Assets and Liabilities Subject to Non-recurring and Recurring Fair Value Measurement | |||||||||||||||||
Impaired loans and used trucks held for sale are measured on a non-recurring basis. Amounts shown below represent the balance of assets measured at fair value during the nine months ended September 30, 2013 and twelve months ended December 31, 2012. Derivative contracts are measured on a recurring basis. These assets and liabilities are outlined in the table below: | |||||||||||||||||
Level 2 | September 30 | December 31 | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets: | |||||||||||||||||
Impaired loans, net of specific reserves (2013 - $.4 and 2012 - $.2) | $ | 7.2 | $ | 4.9 | |||||||||||||
Used trucks held for sale | 6.2 | 12.4 | |||||||||||||||
Derivative contracts | 1.1 | ||||||||||||||||
Liabilities: | |||||||||||||||||
Derivative contracts | 7.3 | 12.5 | |||||||||||||||
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. | |||||||||||||||||
Impaired Loans: Impaired loans are considered collateral dependent. Accordingly, the evaluation of individual reserves considers the fair value of the associated collateral (estimated sales proceeds less the costs to sell). | |||||||||||||||||
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 and the condition of the vehicles. Used truck impairments charges related to units held at September 30, 2013 and 2012 were $1.0 and $1.4 during the first nine months of 2013 and 2012, respectively, and were recorded in Depreciation and other rental expenses on the Statements of Comprehensive Income and Retained Earnings. 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, wholesale financings and operating lease and other trade receivables, carrying values approximate fair values. For fixed-rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on 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 at September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||
30-Sep | 31-Dec | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair Value | ||||||||||||||
Amount | Value | Amount | |||||||||||||||
Assets: | |||||||||||||||||
Due from PACCAR | $ | 550.5 | $ | 553 | $ | 314.4 | $ | 315.3 | |||||||||
Due from foreign finance affiliates | 216 | 218.8 | 216.6 | 217 | |||||||||||||
Fixed-rate loans | 2,320.10 | 2,348.50 | 2,175.60 | 2,221.70 | |||||||||||||
Liabilities: | |||||||||||||||||
Due to PACCAR | 218 | 223.2 | 218 | 233.6 | |||||||||||||
Fixed-rate debt | 2,749.90 | 2,771.20 | 2,001.10 | 2,023.00 |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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. The notional amount is used to measure the volume of these contracts and does not represent exposure to credit loss. In the event of default by the counterparty, the risk in these transactions is the fair value of replacing the interest rate contract at current market rates. | |||||||||||||||||
At September 30, 2013, the notional amount of these contracts totaled $1,244.0 with amounts expiring over the next seven years. Notional maturities for all interest rate contracts are $161.0 for the remainder of 2013, $601.0 for 2014, $325.0 for 2015, $112.0 for 2016, $20.0 for 2017 and $25.0 for 2020. The majority of these contracts are floating to fixed rate swaps that effectively convert an equivalent amount of commercial paper and other variable rate debt to fixed rates. | |||||||||||||||||
The following table presents the balance sheet classification, fair value and gross and net amounts of derivative financial instruments: | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Interest-Rate Contracts | Gross Amount | Amount Not | Pro Forma | ||||||||||||||
Recognized in | Offset in Financial | Net Amount | |||||||||||||||
Balance Sheets | Instruments | ||||||||||||||||
Assets: | |||||||||||||||||
Other assets | $ | 1.1 | $ | 1.1 | |||||||||||||
Liabilities: | |||||||||||||||||
Accounts payable, accrued expenses and other | 7.3 | 7.3 | |||||||||||||||
As of December 31, 2012 | |||||||||||||||||
Interest-Rate Contracts | Gross Amount | Amount Not Offset | Pro Forma | ||||||||||||||
Recognized in | in Financial | Net Amount | |||||||||||||||
Balance Sheets | Instruments | ||||||||||||||||
Liabilities: | |||||||||||||||||
Accounts payable, accrued expenses and other | $ | 12.5 | $ | 12.5 | |||||||||||||
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. | |||||||||||||||||
The Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreement 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 had no material exposures to default at September 30, 2013. | |||||||||||||||||
Cash Flow Hedges | |||||||||||||||||
Substantially all of the Company’s interest rate contracts have been designated as cash flow hedges. The Company uses regression analysis to assess the effectiveness of hedges on a quarterly basis. The change in variable cash flows method or the hypothetical derivative method is used to measure ineffectiveness of interest rate contracts designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive loss to the extent such hedges are considered effective. Gains or losses on the ineffective portion of cash flow hedges are recognized in current earnings and were immaterial for the nine months ended September 30, 2013 and 2012. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 6.6 years. | |||||||||||||||||
Amounts in accumulated other comprehensive loss are reclassified into net income in the same period in which the hedged transaction affects earnings. Net realized gains and losses from interest rate contracts are recognized as an adjustment to interest expense. Of the $3.8, net of tax, included in accumulated other comprehensive loss as of September 30, 2013, $3.8, net of tax, is expected to be reclassified to interest expense in the following 12 months. 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. | |||||||||||||||||
The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges recognized in other comprehensive income and into the Statements of Comprehensive Income and Retained Earnings: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Pre-tax gain (loss) on derivative contracts recognized in OCI | $ | (1.6 | ) | $ | (3.7 | ) | $ | 0.2 | $ | (9.4 | ) | ||||||
Expenses reclassified out of AOCI into Interest and other borrowing expenses | 2 | 2 | 6.2 | 7.7 | |||||||||||||
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 expense or (income) recognized in earnings related to fair value hedges was included in Interest and other borrowing costs in the Statements of Comprehensive Income and Retained Earnings as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest-rate swaps | $ | $ | (.7 | ) | $ | $ | (2.3 | ) | |||||||||
Term notes | 0.9 | 2.1 | |||||||||||||||
In addition, the net interest income from the settlement of the interest-rate swaps was nil and $.9 for the nine months ended September 30, 2013 and 2012, respectively. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
NOTE G – Income Taxes | |
The effective income tax rate for the third quarter and first nine months of 2013 was 37.9% and 37.9%, respectively, compared to 38.0% and 39.3% for the third quarter and first nine months of 2012, respectively, reflecting higher state tax expense in the third quarter and first nine months of 2012 compared to 2013. | |
The Company is included in the consolidated federal income tax return of PACCAR. Federal income taxes for the Company are determined on a separate return basis. State income taxes, where the Company files combined tax returns with PACCAR, are determined on a blended statutory rate, which is substantially the same as the rate computed on a separate return basis. |
Finance_and_Other_Receivables_
Finance and Other Receivables (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Finance and Other Receivables | ' | ||||||||||||||||||||
The Company’s finance and other receivables include the following: | |||||||||||||||||||||
September 30 | December 31 | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Retail loans | $ | 2,374.30 | $ | 2,242.10 | |||||||||||||||||
Retail direct financing leases | 1,472.40 | 1,451.80 | |||||||||||||||||||
Dealer wholesale financing | 578.8 | 641.7 | |||||||||||||||||||
Dealer master notes | 76.9 | 92.4 | |||||||||||||||||||
Operating lease and other trade receivables | 31.5 | 32.4 | |||||||||||||||||||
Unearned interest on finance leases | (144.5 | ) | (148.5 | ) | |||||||||||||||||
Total portfolio | $ | 4,389.40 | $ | 4,311.90 | |||||||||||||||||
Less allowance for losses: | |||||||||||||||||||||
Loans and leases | (50.9 | ) | (47.8 | ) | |||||||||||||||||
Dealer wholesale financing | (3.1 | ) | (3.9 | ) | |||||||||||||||||
Operating lease and other trade receivables | (1.3 | ) | (1.1 | ) | |||||||||||||||||
Total portfolio, net of allowance for losses | $ | 4,334.10 | $ | 4,259.10 | |||||||||||||||||
Allowance for Credit Losses | ' | ||||||||||||||||||||
The allowance for credit losses is summarized as follows: | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
Wholesale | Retail | Retail | Other* | Total | |||||||||||||||||
Balance at January 1 | $ | 3.9 | $ | 10.7 | $ | 37.1 | $ | 1.1 | $ | 52.8 | |||||||||||
Provision for losses | (.8 | ) | 6.4 | 0.3 | 5.9 | ||||||||||||||||
Charge-offs | (5.1 | ) | (.1 | ) | (5.2 | ) | |||||||||||||||
Recoveries | 1.8 | 1.8 | |||||||||||||||||||
Balance at September 30 | $ | 3.1 | $ | 10.7 | $ | 40.2 | $ | 1.3 | $ | 55.3 | |||||||||||
2012 | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
Wholesale | Retail | Retail | Other* | Total | |||||||||||||||||
Balance at January 1 | $ | 3.4 | $ | 9.9 | $ | 44.4 | $ | 1.1 | $ | 58.8 | |||||||||||
Provision for losses | 1.2 | 0.9 | 3.3 | 5.4 | |||||||||||||||||
Charge-offs | (6.7 | ) | (.1 | ) | (6.8 | ) | |||||||||||||||
Recoveries | 1.2 | 1.2 | |||||||||||||||||||
Balance at September 30 | $ | 4.6 | $ | 10.8 | $ | 42.2 | $ | 1 | $ | 58.6 | |||||||||||
* | Operating lease and other trade receivables. | ||||||||||||||||||||
Finance Receivables Evaluated and Determined Individually and Collectively | ' | ||||||||||||||||||||
Information regarding finance receivables evaluated and determined individually and collectively is as follows: | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
At September 30, 2013 | Wholesale | Retail | Retail | Total | |||||||||||||||||
Recorded investment for impaired finance receivables evaluated individually | $ | 21.3 | $ | 21.3 | |||||||||||||||||
Allowance for impaired finance receivables determined individually | 2.8 | 2.8 | |||||||||||||||||||
Recorded investment for finance receivables evaluated collectively | $ | 578.8 | $ | 1,196.00 | 2,561.80 | 4,336.60 | |||||||||||||||
Allowance for finance receivables determined collectively | 3.1 | 10.7 | 37.4 | 51.2 | |||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
At December 31, 2012 | Wholesale | Retail | Retail | Total | |||||||||||||||||
Recorded investment for impaired finance receivables evaluated individually | $ | 0.1 | $ | 18.5 | $ | 18.6 | |||||||||||||||
Allowance for impaired finance receivables determined individually | 2.1 | 2.1 | |||||||||||||||||||
Recorded investment for finance receivables evaluated collectively | $ | 641.7 | 1,213.40 | 2,405.80 | 4,260.90 | ||||||||||||||||
Allowance for finance receivables determined collectively | 3.9 | 10.7 | 35 | 49.6 | |||||||||||||||||
Recorded Investment for Finance Receivables that are on Non-accrual Status | ' | ||||||||||||||||||||
The recorded investment for finance receivables that are on non-accrual status is as follows: | |||||||||||||||||||||
September 30 | December 31 | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Dealer: | |||||||||||||||||||||
Wholesale | |||||||||||||||||||||
Retail | $ | 0.1 | |||||||||||||||||||
Customer Retail: | |||||||||||||||||||||
Fleet | $ | 18.5 | 14 | ||||||||||||||||||
Owner/Operator | 2.8 | 4.5 | |||||||||||||||||||
$ | 21.3 | $ | 18.6 | ||||||||||||||||||
Impaired Loans and Specific Reserve | ' | ||||||||||||||||||||
Impaired loans with no specific reserves were nil and $2.9 at September 30, 2013 and December 31, 2012, respectively. Impaired loans with a specific reserve are summarized below. The impaired loans with specific reserve represent the unpaid principal balance. The recorded investment of impaired loans as of September 30, 2013 and December 31, 2012 was not significantly different than the unpaid principal balance. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At September 30, 2013 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Impaired loans with specific reserve | $ | 15.3 | $ | 2.7 | $ | 18 | |||||||||||||||
Associated allowance | (1.4 | ) | (.7 | ) | (2.1 | ) | |||||||||||||||
Net carrying amount of impaired loans | $ | 13.9 | $ | 2 | $ | 15.9 | |||||||||||||||
Average recorded investment* | $ | 13.8 | $ | 3.7 | $ | 17.5 | |||||||||||||||
* Represents the average during the 12 months ended September 30, 2013. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2012 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Impaired loans with specific reserve | $ | 9.4 | $ | 4.3 | $ | 13.7 | |||||||||||||||
Associated allowance | (.7 | ) | (1.1 | ) | (1.8 | ) | |||||||||||||||
Net carrying amount of impaired loans | $ | 8.7 | $ | 3.2 | $ | 11.9 | |||||||||||||||
Average recorded investment* | $ | 10.9 | $ | 6.1 | $ | 17 | |||||||||||||||
* | Represents the average during the 12 months ended September 30, 2012. | ||||||||||||||||||||
Interest Income Recognized on Cash Basis | ' | ||||||||||||||||||||
During the period the loans above were considered impaired, interest income recognized on a cash basis is as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Interest income recognized: | |||||||||||||||||||||
Dealer: | |||||||||||||||||||||
Wholesale | |||||||||||||||||||||
Retail | |||||||||||||||||||||
Customer Retail: | |||||||||||||||||||||
Fleet | $ | 0.3 | $ | 0.2 | $ | 1 | $ | 0.4 | |||||||||||||
Owner/Operator | 0.1 | 0.1 | 0.4 | 0.4 | |||||||||||||||||
$ | 0.4 | $ | 0.3 | $ | 1.4 | $ | 0.8 | ||||||||||||||
Finance Receivables by Credit Quality Indicator | ' | ||||||||||||||||||||
The tables below summarize the Company’s finance receivables by credit quality indicator and portfolio class. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At September 30, 2013 | Wholesale | Retail | Fleet | Owner / | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Performing | $ | 578.8 | $ | 1,189.60 | $ | 2,196.70 | $ | 358.7 | $ | 4,323.80 | |||||||||||
Watch | 6.4 | 6.2 | 0.2 | 12.8 | |||||||||||||||||
At-risk | 18.5 | 2.8 | 21.3 | ||||||||||||||||||
Total | $ | 578.8 | $ | 1,196.00 | $ | 2,221.40 | $ | 361.7 | $ | 4,357.90 | |||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2012 | Wholesale | Retail | Fleet | Owner / | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Performing | $ | 641.7 | $ | 1,207.10 | $ | 2,008.80 | $ | 385.7 | $ | 4,243.30 | |||||||||||
Watch | 6.3 | 10.9 | 0.4 | 17.6 | |||||||||||||||||
At-risk | 0.1 | 14 | 4.5 | 18.6 | |||||||||||||||||
Total | $ | 641.7 | $ | 1,213.50 | $ | 2,033.70 | $ | 390.6 | $ | 4,279.50 | |||||||||||
Financing Receivables by Aging Category | ' | ||||||||||||||||||||
The tables below summarize 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 | ||||||||||||||||||||
At September 30, 2013 | Wholesale | Retail | Fleet | Owner / | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Current and up to 30 days past-due | $ | 578.8 | $ | 1,196.00 | $ | 2,207.90 | $ | 359.3 | $ | 4,342.00 | |||||||||||
31 – 60 days past-due | 5 | 0.7 | 5.7 | ||||||||||||||||||
Greater than 60 days past-due | 8.5 | 1.7 | 10.2 | ||||||||||||||||||
Total | $ | 578.8 | $ | 1,196.00 | $ | 2,221.40 | $ | 361.7 | $ | 4,357.90 | |||||||||||
Dealer | Retail Customer | ||||||||||||||||||||
At December 31, 2012 | Wholesale | Retail | Fleet | Owner / | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Current and up to 30 days past-due | $ | 641.7 | $ | 1,213.50 | $ | 2,025.90 | $ | 386.9 | $ | 4,268.00 | |||||||||||
31 – 60 days past-due | 2.2 | 0.7 | 2.9 | ||||||||||||||||||
Greater than 60 days past-due | 5.6 | 3 | 8.6 | ||||||||||||||||||
Total | $ | 641.7 | $ | 1,213.50 | $ | 2,033.70 | $ | 390.6 | $ | 4,279.50 | |||||||||||
Pre-Modification and Post-Modification Recorded Investment Balances by Portfolio Class | ' | ||||||||||||||||||||
At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Fleet | $ | 0.2 | $ | 0.2 | $ | 0.5 | $ | 0.5 | |||||||||||||
Owner/Operator | 0.3 | 0.3 | |||||||||||||||||||
$ | 0.2 | $ | 0.2 | $ | 0.8 | $ | 0.8 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | ||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Fleet | $ | 7.2 | $ | 7.2 | $ | 16 | $ | 16 | |||||||||||||
Owner/Operator | 0.4 | 0.4 | |||||||||||||||||||
$ | 7.2 | $ | 7.2 | $ | 16.4 | $ | 16.4 | ||||||||||||||
TDRs Modified During Previous Twelve Months that Subsequently Defaulted by Portfolio Class | ' | ||||||||||||||||||||
TDRs modified during the previous twelve months that subsequently defaulted (i.e. became more than 30 days past-due) during the period by portfolio class are as follows: | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
30-Sep | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Fleet | $ | 0.3 | $ | 4.8 | |||||||||||||||||
Owner/Operator | |||||||||||||||||||||
$ | 0.3 | $ | 4.8 | ||||||||||||||||||
Transactions_with_PACCAR_and_A1
Transactions with PACCAR and Affiliates (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Amounts Outstanding Including Foreign Finance Affiliates | ' | ||||||||
Amounts outstanding at September 30, 2013 and December 31, 2012, including foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Australia and Canada are summarized below: | |||||||||
September 30 | December 31 | ||||||||
2013 | 2012 | ||||||||
Due from PACCAR and affiliates: | |||||||||
Loans due from PACCAR | $ | 650.5 | $ | 428.4 | |||||
Loans due from foreign finance affiliates | 431 | 360.6 | |||||||
Direct financing leases due from affiliate | 13.5 | 13.9 | |||||||
Receivables | 251.2 | 246.9 | |||||||
Total | $ | 1,346.20 | $ | 1,049.80 | |||||
Due to PACCAR and affiliates: | |||||||||
Loans due to PACCAR | $ | 218 | $ | 218 | |||||
Payables | 22.8 | 35.1 | |||||||
Total | $ | 240.8 | $ | 253.1 | |||||
Stockholders_Equity_Tables
Stockholder's Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Components of Other Comprehensive Income (OCI) | ' | ||||||||||||||||
The components of comprehensive income are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 25.4 | $ | 22 | $ | 70.5 | $ | 61.7 | |||||||||
Comprehensive income | |||||||||||||||||
Derivative contracts increase (decrease) | 0.2 | (1.0 | ) | 3.9 | (1.0 | ) | |||||||||||
Net comprehensive income (loss) | 0.2 | (1.0 | ) | 3.9 | (1.0 | ) | |||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 25.6 | $ | 21 | $ | 74.4 | $ | 60.7 | |||||||||
Changes in and Reclassifications out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
Changes in and reclassifications out of AOCI during the nine months ended September 30, 2013 are as follows: | |||||||||||||||||
Unrealized Gains | |||||||||||||||||
(Losses) on Derivative | |||||||||||||||||
Contracts | |||||||||||||||||
Balance at December 31, 2012 | $ | (7.7 | ) | ||||||||||||||
Amounts recorded in AOCI | |||||||||||||||||
Unrealized gain on derivative contracts | 0.2 | ||||||||||||||||
Income tax effect | (.1 | ) | |||||||||||||||
Amounts reclassified out of AOCI | |||||||||||||||||
Interest and other borrowing costs | 6.2 | ||||||||||||||||
Income taxes | (2.4 | ) | |||||||||||||||
Net other comprehensive income | 3.9 | ||||||||||||||||
Balance at September 30, 2013 | $ | (3.8 | ) | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Assets and Liabilities Fair Value Measurements | ' | ||||||||||||||||
Amounts shown below represent the balance of assets measured at fair value during the nine months ended September 30, 2013 and twelve months ended December 31, 2012. Derivative contracts are measured on a recurring basis. These assets and liabilities are outlined in the table below: | |||||||||||||||||
Level 2 | September 30 | December 31 | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets: | |||||||||||||||||
Impaired loans, net of specific reserves (2013 - $.4 and 2012 - $.2) | $ | 7.2 | $ | 4.9 | |||||||||||||
Used trucks held for sale | 6.2 | 12.4 | |||||||||||||||
Derivative contracts | 1.1 | ||||||||||||||||
Liabilities: | |||||||||||||||||
Derivative contracts | 7.3 | 12.5 | |||||||||||||||
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 at September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||
30-Sep | 31-Dec | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair Value | ||||||||||||||
Amount | Value | Amount | |||||||||||||||
Assets: | |||||||||||||||||
Due from PACCAR | $ | 550.5 | $ | 553 | $ | 314.4 | $ | 315.3 | |||||||||
Due from foreign finance affiliates | 216 | 218.8 | 216.6 | 217 | |||||||||||||
Fixed-rate loans | 2,320.10 | 2,348.50 | 2,175.60 | 2,221.70 | |||||||||||||
Liabilities: | |||||||||||||||||
Due to PACCAR | 218 | 223.2 | 218 | 233.6 | |||||||||||||
Fixed-rate debt | 2,749.90 | 2,771.20 | 2,001.10 | 2,023.00 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Balance Sheet Classification, Fair Value and Gross and Net Ammounts 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 September 30, 2013 | |||||||||||||||||
Interest-Rate Contracts | Gross Amount | Amount Not | Pro Forma | ||||||||||||||
Recognized in | Offset in Financial | Net Amount | |||||||||||||||
Balance Sheets | Instruments | ||||||||||||||||
Assets: | |||||||||||||||||
Other assets | $ | 1.1 | $ | 1.1 | |||||||||||||
Liabilities: | |||||||||||||||||
Accounts payable, accrued expenses and other | 7.3 | 7.3 | |||||||||||||||
As of December 31, 2012 | |||||||||||||||||
Interest-Rate Contracts | Gross Amount | Amount Not Offset | Pro Forma | ||||||||||||||
Recognized in | in Financial | Net Amount | |||||||||||||||
Balance Sheets | Instruments | ||||||||||||||||
Liabilities: | |||||||||||||||||
Accounts payable, accrued expenses and other | $ | 12.5 | $ | 12.5 | |||||||||||||
Designated as Hedging Instrument | ' | ||||||||||||||||
Gains/Losses of Derivative Financial Instruments | ' | ||||||||||||||||
The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges recognized in other comprehensive income and into the Statements of Comprehensive Income and Retained Earnings: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Pre-tax gain (loss) on derivative contracts recognized in OCI | $ | (1.6 | ) | $ | (3.7 | ) | $ | 0.2 | $ | (9.4 | ) | ||||||
Expenses reclassified out of AOCI into Interest and other borrowing expenses | 2 | 2 | 6.2 | 7.7 | |||||||||||||
Fair Value Hedging | ' | ||||||||||||||||
Gains/Losses of Derivative Financial Instruments | ' | ||||||||||||||||
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 expense or (income) recognized in earnings related to fair value hedges was included in Interest and other borrowing costs in the Statements of Comprehensive Income and Retained Earnings as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest-rate swaps | $ | $ | (.7 | ) | $ | $ | (2.3 | ) | |||||||||
Term notes | 0.9 | 2.1 |
Finance_and_Other_Receivables_1
Finance and Other Receivables (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||
In Millions, unless otherwise specified | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||||
Retail loans | $2,374.30 | $2,242.10 | ' | ' | ||||
Retail direct financing leases | 1,472.40 | 1,451.80 | ' | ' | ||||
Dealer wholesale financing | 578.8 | 641.7 | ' | ' | ||||
Dealer master notes | 76.9 | 92.4 | ' | ' | ||||
Operating lease and other trade receivables | 31.5 | 32.4 | ' | ' | ||||
Unearned interest on finance leases | -144.5 | -148.5 | ' | ' | ||||
Total portfolio | 4,389.40 | 4,311.90 | ' | ' | ||||
Allowance for losses | -55.3 | -52.8 | -58.6 | -58.8 | ||||
Total portfolio, net of allowance for losses | 4,334.10 | 4,259.10 | [1] | ' | ' | |||
Loans and Leases | ' | ' | ' | ' | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||||
Allowance for losses | -50.9 | -47.8 | ' | ' | ||||
Dealer Wholesale Financing | ' | ' | ' | ' | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||||
Allowance for losses | -3.1 | -3.9 | ' | ' | ||||
Operating lease and other trade receivables | ' | ' | ' | ' | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||||
Allowance for losses | ($1.30) | [2] | ($1.10) | [2] | ($1) | [2] | ($1.10) | [2] |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. | |||||||
[2] | Operating lease and other trade receivables. |
Finance_and_Other_Receivables_2
Finance and Other Receivables - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables more than 90 days past due still accruing | $0 | ' | $0 |
Extension of contractual terms | '4 months | ' | '4 months |
Number of portfolio segments | 2 | ' | ' |
Impaired loans with no specific reserve | ' | ' | 2.9 |
Troubled debt restructuring | 5.2 | ' | 11 |
TDRs modified during the previous twelve months that subsequently defaulted | 0.3 | 4.8 | ' |
Repossessed inventory | 2.2 | ' | 10.4 |
Proceeds from the sales of repossessed assets | 13.8 | 8.3 | ' |
Unamortized loan origination costs | 12.3 | ' | 12.2 |
Fleet | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
TDRs modified during the previous twelve months that subsequently defaulted | 0.3 | 4.8 | ' |
Fleet | Customer One | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
TDRs modified during the previous twelve months that subsequently defaulted | ' | 4.8 | ' |
Impaired loans with specific reserve | ' | 1.8 | ' |
Collateral supporting impaired loans | ' | $3 | ' |
Minimum | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Contractual term of regular payment of principal and interest | '36 months | ' | ' |
Maximum | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Contractual term of regular payment of principal and interest | '60 months | ' | ' |
Percentage of customers diversification in portfolio | 8.00% | ' | ' |
Allowance_for_Credit_Losses_De
Allowance for Credit Losses (Detail) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Beginning Balance | $52.80 | $58.80 | ||
Provision for losses | 5.9 | 5.4 | ||
Charge-offs | -5.2 | -6.8 | ||
Recoveries | 1.8 | 1.2 | ||
Ending Balance | 55.3 | 58.6 | ||
Dealer | Wholesale | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Beginning Balance | 3.9 | 3.4 | ||
Provision for losses | -0.8 | 1.2 | ||
Ending Balance | 3.1 | 4.6 | ||
Dealer | Retail | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Beginning Balance | 10.7 | 9.9 | ||
Provision for losses | ' | 0.9 | ||
Charge-offs | ' | ' | ||
Ending Balance | 10.7 | 10.8 | ||
Customer Retail | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Beginning Balance | 37.1 | 44.4 | ||
Provision for losses | 6.4 | 3.3 | ||
Charge-offs | -5.1 | -6.7 | ||
Recoveries | 1.8 | 1.2 | ||
Ending Balance | 40.2 | 42.2 | ||
Operating lease and other trade receivables | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Beginning Balance | 1.1 | [1] | 1.1 | [1] |
Provision for losses | 0.3 | [1] | ' | |
Charge-offs | -0.1 | [1] | -0.1 | [1] |
Ending Balance | $1.30 | [1] | $1 | [1] |
[1] | Operating lease and other trade receivables. |
Finance_Receivables_Summary_by
Finance Receivables Summary by those Evaluated Collectively and Individually (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment for impaired finance receivables evaluated individually | $21.30 | $18.60 |
Allowance for impaired finance receivables determined individually | 2.8 | 2.1 |
Recorded investment for finance receivables evaluated collectively | 4,336.60 | 4,260.90 |
Allowance for finance receivables determined collectively | 51.2 | 49.6 |
Dealer | Wholesale | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment for finance receivables evaluated collectively | 578.8 | 641.7 |
Allowance for finance receivables determined collectively | 3.1 | 3.9 |
Dealer | Retail | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment for impaired finance receivables evaluated individually | ' | 0.1 |
Recorded investment for finance receivables evaluated collectively | 1,196 | 1,213.40 |
Allowance for finance receivables determined collectively | 10.7 | 10.7 |
Customer Retail | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment for impaired finance receivables evaluated individually | 21.3 | 18.5 |
Allowance for impaired finance receivables determined individually | 2.8 | 2.1 |
Recorded investment for finance receivables evaluated collectively | 2,561.80 | 2,405.80 |
Allowance for finance receivables determined collectively | $37.40 | $35 |
Recorded_Investment_for_Financ
Recorded Investment for Finance Receivables that are on Non-accrual Status (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Financing Receivables [Line Items] | ' | ' |
Recorded investment of finance receivables that are on non-accrual status | $21.30 | $18.60 |
Dealer | Retail | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Recorded investment of finance receivables that are on non-accrual status | ' | 0.1 |
Customer Retail | Fleet | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Recorded investment of finance receivables that are on non-accrual status | 18.5 | 14 |
Customer Retail | Owner/Operator | ' | ' |
Schedule Of Financing Receivables [Line Items] | ' | ' |
Recorded investment of finance receivables that are on non-accrual status | $2.80 | $4.50 |
Impaired_Loans_and_Specific_Re
Impaired Loans and Specific Reserve (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ||
Impaired loans with specific reserve | $18 | $13.70 | ||
Associated allowance | -2.1 | -1.8 | ||
Net carrying amount of impaired loans | 15.9 | 11.9 | ||
Average recorded investment | 17.5 | [1] | 17 | [2] |
Customer Retail | Fleet | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ||
Impaired loans with specific reserve | 15.3 | 9.4 | ||
Associated allowance | -1.4 | -0.7 | ||
Net carrying amount of impaired loans | 13.9 | 8.7 | ||
Average recorded investment | 13.8 | [1] | 10.9 | [2] |
Customer Retail | Owner/Operator | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ||
Impaired loans with specific reserve | 2.7 | 4.3 | ||
Associated allowance | -0.7 | -1.1 | ||
Net carrying amount of impaired loans | 2 | 3.2 | ||
Average recorded investment | $3.70 | [1] | $6.10 | [2] |
[1] | Represents the average during the 12 months ended September 30, 2013. | |||
[2] | Represents the average during the 12 months ended September 30, 2012. |
Interest_Income_Recognized_Det
Interest Income Recognized (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Interest income recognized on a cash basis | $0.40 | $0.30 | $1.40 | $0.80 |
Customer Retail | Fleet | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Interest income recognized on a cash basis | 0.3 | 0.2 | 1 | 0.4 |
Customer Retail | Owner/Operator | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Interest income recognized on a cash basis | $0.10 | $0.10 | $0.40 | $0.40 |
Financing_Receivables_by_Credi
Financing Receivables by Credit Quality Indicator (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | $4,357.90 | $4,279.50 |
Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 4,323.80 | 4,243.30 |
Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 12.8 | 17.6 |
Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 21.3 | 18.6 |
Dealer | Wholesale | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 578.8 | 641.7 |
Dealer | Wholesale | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 578.8 | 641.7 |
Dealer | Retail | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1,196 | 1,213.50 |
Dealer | Retail | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1,189.60 | 1,207.10 |
Dealer | Retail | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 6.4 | 6.3 |
Dealer | Retail | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | ' | 0.1 |
Customer Retail | Fleet | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 2,221.40 | 2,033.70 |
Customer Retail | Fleet | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 2,196.70 | 2,008.80 |
Customer Retail | Fleet | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 6.2 | 10.9 |
Customer Retail | Fleet | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 18.5 | 14 |
Customer Retail | Owner/Operator | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 361.7 | 390.6 |
Customer Retail | Owner/Operator | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 358.7 | 385.7 |
Customer Retail | Owner/Operator | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 0.2 | 0.4 |
Customer Retail | Owner/Operator | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | $2.80 | $4.50 |
Financing_Receivables_by_Aging
Financing Receivables by Aging Category (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past-due | $4,342 | $4,268 |
31 - 60 days past-due | 5.7 | 2.9 |
Greater than 60 days past-due | 10.2 | 8.6 |
Total | 4,357.90 | 4,279.50 |
Dealer | Wholesale | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past-due | 578.8 | 641.7 |
Total | 578.8 | 641.7 |
Dealer | Retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past-due | 1,196 | 1,213.50 |
Total | 1,196 | 1,213.50 |
Customer Retail | Fleet | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past-due | 2,207.90 | 2,025.90 |
31 - 60 days past-due | 5 | 2.2 |
Greater than 60 days past-due | 8.5 | 5.6 |
Total | 2,221.40 | 2,033.70 |
Customer Retail | Owner/Operator | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past-due | 359.3 | 386.9 |
31 - 60 days past-due | 0.7 | 0.7 |
Greater than 60 days past-due | 1.7 | 3 |
Total | $361.70 | $390.60 |
Pre_and_Post_Modification_Reco
Pre and Post Modification Recorded Investment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification | $0.20 | $7.20 | $0.80 | $16.40 |
Post-Modification | 0.2 | 7.2 | 0.8 | 16.4 |
Customer Retail | Fleet | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification | 0.2 | 7.2 | 0.5 | 16 |
Post-Modification | 0.2 | 7.2 | 0.5 | 16 |
Customer Retail | Owner/Operator | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification | ' | ' | 0.3 | 0.4 |
Post-Modification | ' | ' | $0.30 | $0.40 |
TDR_Modified_During_Previous_T
TDR Modified During Previous Twelve Months that Subsequently Defaulted by Portfolio Class (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ' | ' |
Recorded investment, subsequently defaulted | $0.30 | $4.80 |
Fleet | ' | ' |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ' | ' |
Recorded investment, subsequently defaulted | $0.30 | $4.80 |
Transactions_with_PACCAR_and_A2
Transactions with PACCAR and Affiliates - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Facility | |||
Related Party Transaction [Line Items] | ' | ' | ' |
Required ratio of net earnings available for fixed charges to fixed charges | 125.00% | ' | ' |
Loans due to PACCAR | $218 | ' | $218 |
Dividends declared and paid | 0 | 0 | ' |
Number of facilities owned by company | 1 | ' | ' |
Number of facilities leased by company | 5 | ' | ' |
Foreign Finance Affiliates | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Loans to foreign affiliates, upper limit | $500 | ' | ' |
Period 1 | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fixed interest rate | 6.88% | ' | ' |
Loan maturity period | '2014-02 | ' | ' |
Amounts_Outstanding_Including_
Amounts Outstanding Including Foreign Finance Affiliates (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Due from PACCAR and affiliates | ' | ' | |
Direct financing leases due from affiliate | $13.50 | $13.90 | |
Loans due from affiliates | 1,346.20 | 1,049.80 | [1] |
Due to PACCAR and affiliates | ' | ' | |
Loans due to PACCAR | 218 | 218 | |
Loans due to affiliates | 240.8 | 253.1 | [1] |
PACCAR | ' | ' | |
Due from PACCAR and affiliates | ' | ' | |
Loans due from affiliates | 650.5 | 428.4 | |
Foreign Finance Affiliates | ' | ' | |
Due from PACCAR and affiliates | ' | ' | |
Loans due from affiliates | 431 | 360.6 | |
Receivables | ' | ' | |
Due from PACCAR and affiliates | ' | ' | |
Loans due from affiliates | 251.2 | 246.9 | |
Payables | ' | ' | |
Due to PACCAR and affiliates | ' | ' | |
Loans due to affiliates | $22.80 | $35.10 | |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Stockholders Equity Note [Line Items] | ' | ' | |
Preferred stock dividend percentage | 6.00% | ' | |
Ownership percentage of PACCAR | 100.00% | ' | |
Accumulated other comprehensive loss | ($3.80) | ($7.70) | [1] |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. |
Components_of_Other_Comprehens
Components of Other Comprehensive Income (OCI) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Net income | $25.40 | $22 | $70.50 | $61.70 |
Comprehensive income | ' | ' | ' | ' |
Derivative contracts increase (decrease) | 0.2 | -1 | 3.9 | -1 |
Net comprehensive income (loss) | 0.2 | -1 | 3.9 | -1 |
TOTAL COMPREHENSIVE INCOME | $25.60 | $21 | $74.40 | $60.70 |
Changes_in_and_Reclassificatio
Changes in and Reclassifications out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Beginning balance | ' | ' | ($7.70) | [1] | ' |
Amounts reclassified out of AOCI | ' | ' | ' | ' | |
Net comprehensive income (loss) | 0.2 | -1 | 3.9 | -1 | |
Ending balance | -3.8 | ' | -3.8 | ' | |
Unrealized Gain Loss On Derivatives | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Beginning balance | ' | ' | -7.7 | ' | |
Amounts recorded in AOCI | ' | ' | ' | ' | |
Unrealized gain on derivative contracts | ' | ' | 0.2 | ' | |
Income tax effect | ' | ' | -0.1 | ' | |
Amounts reclassified out of AOCI | ' | ' | ' | ' | |
Interest and other borrowing costs | ' | ' | 6.2 | ' | |
Income taxes | ' | ' | -2.4 | ' | |
Net comprehensive income (loss) | ' | ' | 3.9 | ' | |
Ending balance | ($3.80) | ' | ($3.80) | ' | |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. |
Assets_and_Liabilities_Fair_Va
Assets and Liabilities Fair Value Measurements (Detail) (Fair Value, Inputs, Level 2, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Measurements, Nonrecurring | ' | ' |
Assets: | ' | ' |
Impaired loans, net of specific reserves (2013 - $.4 and 2012 - $.2) | $7.20 | $4.90 |
Used trucks held for sale | 6.2 | 12.4 |
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ' |
Assets: | ' | ' |
Derivative contracts | 1.1 | ' |
Liabilities: | ' | ' |
Derivative contracts | $7.30 | $12.50 |
Assets_and_Liabilities_Fair_Va1
Assets and Liabilities Fair Value Measurements (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans, specific reserves | $2.10 | $1.80 |
Fair Value Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans, specific reserves | $0.40 | $0.20 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Trucks Inventory, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Trucks Inventory | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Used truck impairments | $1 | $1.40 |
Carrying_Amount_and_Fair_Value
Carrying Amount and Fair Value for Fixed-Rate Loans and Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Assets: | ' | ' | |
Loans due from affiliates | $1,346.20 | $1,049.80 | [1] |
Liabilities: | ' | ' | |
Due to PACCAR | 218 | 218 | |
Foreign Finance Affiliates | ' | ' | |
Assets: | ' | ' | |
Loans due from affiliates | 431 | 360.6 | |
Carrying Amount | ' | ' | |
Assets: | ' | ' | |
Fixed rate loans | 2,320.10 | 2,175.60 | |
Liabilities: | ' | ' | |
Fixed rate debt | 2,749.90 | 2,001.10 | |
Carrying Amount | PACCAR | ' | ' | |
Assets: | ' | ' | |
Loans due from affiliates | 550.5 | 314.4 | |
Liabilities: | ' | ' | |
Due to PACCAR | 218 | 218 | |
Carrying Amount | Foreign Finance Affiliates | ' | ' | |
Assets: | ' | ' | |
Loans due from affiliates | 216 | 216.6 | |
Fair Value | ' | ' | |
Assets: | ' | ' | |
Fixed rate loans | 2,348.50 | 2,221.70 | |
Liabilities: | ' | ' | |
Fixed rate debt | 2,771.20 | 2,023 | |
Fair Value | PACCAR | ' | ' | |
Assets: | ' | ' | |
Loans due from affiliates | 553 | 315.3 | |
Liabilities: | ' | ' | |
Due to PACCAR | 223.2 | 233.6 | |
Fair Value | Foreign Finance Affiliates | ' | ' | |
Assets: | ' | ' | |
Loans due from affiliates | $218.80 | $217 | |
[1] | The December 31, 2012 balance sheet has been derived from audited financial statements. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' |
Notional amount of interest-rate contracts | $1,244 | ' |
Interest-rate contracts maturity period | '7 years | ' |
Notional maturities for interest-rate contracts for the remainder of 2013 | 161 | ' |
Notional maturities for interest-rate contracts 2014 | 601 | ' |
Notional maturities for interest-rate contracts 2015 | 325 | ' |
Notional maturities for interest-rate contracts 2016 | 112 | ' |
Notional maturities for interest-rate contracts 2017 | 20 | ' |
Notional maturities for interest-rate contracts 2020 | 25 | ' |
Maximum length of time for which company is hedging its exposure to the variability in future cash flows | '6 years 7 months 6 days | ' |
Accumulated net loss on interest rate contracts included in accumulated other comprehensive loss | 3.8 | ' |
Accumulated net loss on interest rate contracts included in accumulated other comprehensive loss expected to be reclassified to interest expense in the following 12 months | 3.8 | ' |
Net interest income from settlement of interest-rate swaps | ' | $0.90 |
Balance_Sheet_Classification_F
Balance Sheet Classification, Fair Value and Gross and Net Amounts of Derivative Financial Instruments (Detail) (Interest Rate Contract, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross Amount Recognized in Balance Sheets | $1.10 | ' |
Gross Amounts Not Offset in Financial Instruments | ' | ' |
Pro Forma Net Amount | 1.1 | ' |
Accounts Payable and Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross Amount Recognized in Balance Sheets | 7.3 | 12.5 |
Gross Amounts Not Offset in Financial Instruments | ' | ' |
Pro Forma Net Amount | $7.30 | $12.50 |
PreTax_Effects_of_Derivative_I
Pre-Tax Effects of Derivative Instruments Recognized into Accumulated Other Comprehensive Income (OCI) and into Statements of Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative [Line Items] | ' | ' | ' | ' |
Pre-tax gain (loss) on derivative contracts recognized in OCI | ($1.60) | ($3.70) | $0.20 | ($9.40) |
Interest Expense | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Expenses reclassified out of AOCI into Interest and other borrowing expenses | $2 | $2 | $6.20 | $7.70 |
Income_or_Expense_Recognized_i
(Income) or Expense Recognized in Earnings Related to Fair Value Hedges (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Interest Rate Swap | ' | ' |
Derivative [Line Items] | ' | ' |
(Income) or expense recognized in earnings related to fair value hedges | ($0.70) | ($2.30) |
Term Loan | ' | ' |
Derivative [Line Items] | ' | ' |
(Income) or expense recognized in earnings related to fair value hedges | $0.90 | $2.10 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective income tax rate | 37.90% | 37.90% | 38.00% | 39.30% |