Paccar Financial 10-K 19 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Jan. 31, 2016	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	ck0000731288
Entity Registrant Name	PACCAR FINANCIAL CORP
Entity Central Index Key	731,288
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		145,000
Entity Public Float			$ 0

STATEMENTS OF INCOME

STATEMENTS OF INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Interest and fee income	$ 234.9	$ 215.6	$ 206.5
Operating lease and rental revenues	337	324.6	294.3
Used truck sales and other revenues	32.2	23.3	44.2
TOTAL INTEREST AND OTHER REVENUES	604.1	563.5	545
Interest and other borrowing costs	67.4	60.3	65.2
Depreciation and other rental expenses	273.5	262.8	237.9
Cost of used truck sales and other expenses	26.4	15.2	37.5
Selling, general and administrative expenses	47.2	44.9	42.7
Provision for losses on receivables	7.4	5.3	2.3
TOTAL EXPENSES	421.9	388.5	385.6
INCOME BEFORE INCOME TAXES	182.2	175	159.4
Income taxes	69.4	66.4	60.2
NET INCOME	$ 112.8	$ 108.6	$ 99.2

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 112.8	$ 108.6	$ 99.2
Unrealized losses on derivative contracts
Losses arising during the period	(7.5)	(7.4)
Tax effect	2.9	2.7
Reclassification adjustment	7.2	9.9	8
Tax effect	(2.8)	(3.7)	(3)
Net other comprehensive (loss) income	(0.2)	1.5	5
TOTAL COMPREHENSIVE INCOME	$ 112.6	$ 110.1	$ 104.2

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash	$ 35.3	$ 42.9
Finance and other receivables, net of allowance for losses (2015 - $59.3 and 2014 - $56.0)	5,463.3	4,996.6
Due from PACCAR and affiliates	1,033.2	1,288.9
Equipment on operating leases, net of accumulated depreciation (2015 - $498.8 and 2014 - $479.0)	1,355.5	1,274.4
Other assets	163.1	183.1
TOTAL ASSETS	8,050.4	7,785.9
LIABILITIES
Accounts payable, accrued expenses and other	238.6	235.4
Due to PACCAR and affiliates	14.9	57.2
Commercial paper	1,434.4	1,500.6
Medium-term notes	4,399.7	4,149.5
Deferred taxes and other liabilities	785.9	783.4
TOTAL LIABILITIES	6,873.5	6,726.1
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
Common Stock, par value $100 per share, 200,000 shares authorized, 145,000 shares issued and outstanding	14.5	14.5
Additional paid-in capital	116.8	112.3
Retained earnings	1,016	903.2
Accumulated other comprehensive loss	(1.4)	(1.2)
TOTAL STOCKHOLDER'S EQUITY	1,176.9	1,059.8
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 8,050.4	$ 7,785.9

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Finance and other receivables, allowance for losses	$ 59.3	$ 56
Equipment on operating leases, accumulated depreciation	$ 498.8	$ 479
Preferred stock, par value	$ 100	$ 100
Preferred stock, noncumulative and nonvoting	6.00%	6.00%
Preferred stock, shares authorized	450,000	450,000
Preferred stock, shares issued	310,000	310,000
Preferred stock, shares outstanding	310,000	310,000
Common Stock, par value	$ 100	$ 100
Common Stock, shares authorized	200,000	200,000
Common Stock, shares issued	145,000	145,000
Common Stock, shares outstanding	145,000	145,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net income	$ 112.8	$ 108.6	$ 99.2
Items included in net income not affecting cash:
Depreciation and amortization	260.1	242.4	215.3
Provision for losses on receivables	7.4	5.3	2.3
Deferred taxes	7.9	(37.9)	71.8
Administrative fees for services from PACCAR	4.5	4.7	2.9
Change in tax-related balances with PACCAR	(13.3)	205.5	(12.7)
(Decrease) increase in payables and other	(27.7)	(1.2)	47.9
NET CASH PROVIDED BY OPERATING ACTIVITIES	351.7	527.4	426.7
INVESTING ACTIVITIES
Finance and other receivables originated	(1,989.9)	(1,967.3)	(1,834.7)
Collections on finance and other receivables	1,749	1,638.3	1,487.1
Net (increase) decrease in wholesale receivables	(223.7)	(165.4)	63.7
Loans to PACCAR and affiliates	(173)	(180)	(395.5)
Collections on loans from PACCAR and affiliates	315	45	220.5
Net decrease (increase) in other receivables and leases to PACCAR and affiliates	117.6	20	(128.6)
Acquisition of equipment for operating leases, primarily from PACCAR	(518.2)	(488.9)	(457.8)
Proceeds from disposal of equipment	180.1	171.1	135.3
Other		(23.6)	10
NET CASH USED IN INVESTING ACTIVITIES	(543.1)	(950.8)	(900)
FINANCING ACTIVITIES
Net (decrease) increase in short-term commercial paper	(65.4)	350.8	(669.8)
Proceeds from medium-term notes and other commercial paper	1,306.2	1,100	1,700
Payments of medium-term notes and other commercial paper	(1,057)	(800)	(550)
Payments on loans from PACCAR		(218)
NET CASH PROVIDED BY FINANCING ACTIVITIES	183.8	432.8	480.2
NET (DECREASE) INCREASE IN CASH	(7.6)	9.4	6.9
CASH AT BEGINNING OF YEAR	42.9	33.5	26.6
CASH AT END OF YEAR	$ 35.3	$ 42.9	$ 33.5

STATEMENTS OF STOCKHOLDER'S EQU

STATEMENTS OF STOCKHOLDER'S EQUITY - USD ($) $ in Millions	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2012		$ 31	$ 14.5	$ 104.7	$ 695.4	$ (7.7)
Investments from PACCAR				2.9
Net income	$ 99.2				99.2
Net unrealized (loss) gain						5
Balance at Dec. 31, 2013	945	31	14.5	107.6	794.6	(2.7)
Investments from PACCAR				4.7
Net income	108.6				108.6
Net unrealized (loss) gain						1.5
Balance at Dec. 31, 2014	1,059.8	31	14.5	112.3	903.2	(1.2)
Investments from PACCAR				4.5
Net income	112.8				112.8
Net unrealized (loss) gain						(0.2)
Balance at Dec. 31, 2015	$ 1,176.9	$ 31	$ 14.5	$ 116.8	$ 1,016	$ (1.4)

STATEMENTS OF STOCKHOLDER'S EQ8

STATEMENTS OF STOCKHOLDER'S EQUITY (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]
Preferred stock, par value	$ 100	$ 100	$ 100
Common Stock, par value	$ 100	$ 100	$ 100

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE A – SIGNIFICANT ACCOUNTING POLICIES Description of Operations and Basis of Presentation PACCAR Financial Corp. (the “Company”), is a wholly owned subsidiary of PACCAR Inc (“PACCAR”). The Company primarily provides financing of PACCAR manufactured trucks and related equipment sold by authorized dealers. The Company also finances dealer inventories of transportation equipment and franchises Kenworth and Peterbilt dealerships to engage in full-service and finance leasing. The operations of the Company are fundamentally affected by its relationship with PACCAR. Due to the nature of the Company’s business, customers are concentrated in the transportation industry throughout the United States. Generally, all receivables are collateralized by the equipment being financed. The risk of credit losses related to this concentration has been considered in establishing the allowance for credit losses. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Finance and Other Receivables: Loans Finance leases Dealer wholesale financing Operating lease receivables and other Allowance for Credit Losses: The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases in the normal course of its operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies loans and finance leases for credit reasons and grants a concession, the modifications are classified as troubled debt restructurings (TDR). 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. On average, modifications extended contractual terms by approximately five months and four months in 2015 and 2014, respectively, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at December 31, 2015 or 2014. 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 periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and, in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over 36 to 60 months, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves. The Company individually evaluates certain finance receivables for 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 generally 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. The Company evaluates finance receivables that are not individually impaired on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data 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 uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. Revenue Recognition Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts, generally 36 to 60 months, using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at December 31, 2015 or December 31, 2014. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. The Company recognizes revenue on the sale of used trucks acquired from PACCAR truck division customers as part of new truck sales packages when the used trucks are invoiced and delivered to a customer. Equipment on Operating Leases Equipment on operating leases is recorded at cost and is depreciated on the straight-line basis to its estimated residual value. Residual values are reviewed regularly and adjusted if market conditions warrant. Derivative Financial Instruments: As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rate risk. Certain derivative instruments designated as either cash flow hedges or fair value hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as economic hedges. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. The Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its swap counterparties is limited to the asset position of its swap portfolio. The asset position of the Company’s swap portfolio was $1.5 and $.9 at December 31, 2015 and 2014, respectively. The Company uses regression analysis to assess effectiveness of interest-rate contracts on a quarterly basis. All components of the derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Gains or losses on the ineffective portion of cash flow hedges are recognized in current earnings. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Income Taxes The Company is included in the consolidated federal income tax return of PACCAR. Federal income taxes for the Company are determined on a separate return basis, and any related tax liability is paid by the Company to PACCAR and any related tax benefit is paid by PACCAR to the Company. State income taxes, where the Company files combined tax returns with PACCAR, are determined on a blended statutory rate, which is substantially the same as the rate computed on a separate return basis. As of December 31, 2015, the United States Internal Revenue Service has completed examinations of PACCAR’s tax returns for all years through 2010. PACCAR’s tax returns remain subject to examination in most jurisdictions for the years ranging from 2011 through 2015. Preferred Stock The Company’s Articles of Incorporation provide that the 6%, noncumulative, nonvoting preferred stock (100% owned by PACCAR) is redeemable only at the option of the Company’s Board of Directors. New Accounting Pronouncements: In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-1, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The FASB also issued the following standards, none of which are expected to have a material impact on the Company’s financial statements. STANDARD DESCRIPTION EFFECTIVE DATE* 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. January 1, 2017 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. January 1, 2016 2015-15 Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measure of Debt Issuance Costs Associated with Line-of Credit Arrangements. January 1, 2016 * The Company expects to adopt on the effective date.

Finance and Other Receivables

Finance and Other Receivables	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Finance and Other Receivables	NOTE B – FINANCE AND OTHER RECEIVABLES The Company’s finance and other receivables include the following: December 31 December 31 2015 2014 Retail loans $ 2,898.4 $ 2,687.7 Retail direct financing leases 1,717.3 1,699.8 Dealer wholesale financing 967.1 743.4 Dealer master notes 43.0 62.7 Operating lease receivables and other 62.1 31.4 Unearned interest on finance leases (165.3 ) (172.4 ) 5,522.6 5,052.6 Less allowance for credit losses: Loans and leases (55.5 ) (52.4 ) Dealer wholesale financing (2.7 ) (2.8 ) Operating lease receivables and other (1.1 ) (.8 ) $ 5,463.3 $ 4,996.6 Annual minimum payments due on loans and leases are as follows: Loans Finance leases 2016 $ 825.8 $ 426.9 2017 748.3 391.1 2018 604.3 327.3 2019 435.3 258.7 2020 290.1 177.6 Thereafter 37.6 87.7 $ 2,941.4 $ 1,669.3 Estimated residual values included with finance leases amounted to $48.0 in 2015 and $49.1 in 2014. Experience indicates substantially all of dealer wholesale financing will be repaid within one year. In addition, collection experience indicates that some loans, leases and other finance receivables will be paid prior to contract maturity, while others may be extended or modified. For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of retail accounts of customers operating more than five trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk. Allowance for Credit Losses The allowance for credit losses is summarized as follows: 2015 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 2.8 $ 10.4 $ 42.0 $ .8 $ 56.0 (Benefit) provision for losses (.1 ) (1.2 ) 8.0 .7 7.4 Charge-offs (5.5 ) (.5 ) (6.0 ) Recoveries 1.8 .1 1.9 Balance at December 31 $ 2.7 $ 9.2 $ 46.3 $ 1.1 $ 59.3 2014 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 3.0 $ 11.5 $ 40.0 $ .8 $ 55.3 (Benefit) provision for losses (.2 ) (1.1 ) 6.4 .2 5.3 Charge-offs (5.9 ) (.2 ) (6.1 ) Recoveries 1.5 1.5 Balance at December 31 $ 2.8 $ 10.4 $ 42.0 $ .8 $ 56.0 2013 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 3.9 $ 10.7 $ 37.1 $ 1.1 $ 52.8 (Benefit) provision for losses (.9 ) .8 2.6 (.2 ) 2.3 Charge-offs (6.4 ) (.1 ) (6.5 ) Recoveries 6.7 6.7 Balance at December 31 $ 3.0 $ 11.5 $ 40.0 $ .8 $ 55.3 * Operating lease and other trade receivables Information regarding finance receivables evaluated and the associated allowances determined individually and collectively is as follows: Dealer Customer Retail Total At December 31, 2015 Wholesale Retail Recorded investment for impaired finance receivables evaluated individually $ 23.6 $ 23.6 Allowance for impaired finance receivables determined individually $ 3.3 $ 3.3 Recorded investment for finance receivables evaluated collectively $ 967.1 $ 1,398.6 $ 3,071.2 $ 5,436.9 Allowance for finance receivables determined collectively $ 2.7 $ 9.2 $ 43.0 $ 54.9 Dealer Customer Retail Total At December 31, 2014 Wholesale Retail Recorded investment for impaired finance receivables evaluated individually $ 24.7 $ 24.7 Allowance for impaired finance receivables determined individually $ 1.7 $ 1.7 Recorded investment for finance receivables evaluated collectively $ 743.4 $ 1,404.7 $ 2,848.4 $ 4,996.5 Allowance for finance receivables determined collectively $ 2.8 $ 10.4 $ 40.3 $ 53.5 The recorded investment for finance receivables that are on non-accrual status is as follows: December 31 2015 December 31 2014 Fleet $ 21.7 $ 23.0 Owner/Operator 1.9 1.7 $ 23.6 $ 24.7 Impaired Loans Impaired loans are summarized below. The impaired loans with a specific reserve represent the unpaid principal balance. The recorded investment of impaired loans as of December 31, 2015 and 2014 was not significantly different than the unpaid principal balance. Dealer Customer Retail At December 31, 2015 Wholesale Retail Fleet Owner/ Total Impaired loans with a specific reserve $ 13.1 $ 1.6 $ 14.7 Associated allowance (2.8 ) (.3 ) (3.1 ) Net carrying amount of impaired loans with a specific reserve 10.3 1.3 11.6 Impaired loans with no specific reserve 6.4 .2 6.6 Net carrying amount of impaired loans $ 16.7 $ 1.5 $ 18.2 Average recorded investment for impaired loans $ 18.7 $ 1.6 $ 20.3 Dealer Customer Retail At December 31, 2014 Wholesale Retail Fleet Owner/ Total Impaired loans with a specific reserve $ 8.3 $ 1.6 $ 9.9 Associated allowance (.9 ) (.4 ) (1.3 ) Net carrying amount of impaired loans with a specific reserve 7.4 1.2 8.6 Impaired loans with no specific reserve 12.2 12.2 Net carrying amount of impaired loans $ 19.6 $ 1.2 $ 20.8 Average recorded investment for impaired loans $ 16.5 $ 1.6 $ 18.1 During the period the loans above were considered impaired, interest income recognized on a cash basis was as follows: 2015 2014 2013 Fleet $ 1.0 $ .9 $ 1.4 Owner/Operator .3 .4 .5 $ 1.3 $ 1.3 $ 1.9 Credit Quality The Company’s customers are principally concentrated in the transportation industry in the United States. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 10% of the total portfolio assets as of December 31, 2015 and 2014. The Company has contractual arrangements with one customer, Swift Transportation Corporation, that accounted for 13.8%, 14.4% and 11.4% of total Interest and other revenues for the years ended December 31, 2015, 2014 and 2013, respectively. 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 December 31, 2015 Wholesale Retail Fleet Owner/ Total Performing $ 949.1 $ 1,398.6 $ 2,638.8 $ 423.8 $ 5,410.3 Watch 18.0 8.2 .4 26.6 At-risk 21.7 1.9 23.6 $ 967.1 $ 1,398.6 $ 2,668.7 $ 426.1 $ 5,460.5 Dealer Customer Retail At December 31, 2014 Wholesale Retail Fleet Owner/ Total Performing $ 734.3 $ 1,404.7 $ 2,376.6 $ 471.3 $ 4,986.9 Watch 9.1 .1 .4 9.6 At-risk 23.0 1.7 24.7 $ 743.4 $ 1,404.7 $ 2,399.7 $ 473.4 $ 5,021.2 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 Owner/ At December 31, 2015 Wholesale Retail Fleet Operator Total Current and up to 30 days past-due $ 967.1 $ 1,398.6 $ 2,656.0 $ 424.9 $ 5,446.6 31 – 60 days past-due 4.0 .5 4.5 Greater than 60 days past-due 8.7 .7 9.4 $ 967.1 $ 1,398.6 $ 2,668.7 $ 426.1 $ 5,460.5 Dealer Customer Retail Owner/ At December 31, 2014 Wholesale Retail Fleet Operator Total Current and up to 30 days past-due $ 743.4 $ 1,404.7 $ 2,398.1 $ 472.5 $ 5,018.7 31 – 60 days past-due 1.0 1.0 Greater than 60 days past-due .6 .9 1.5 $ 743.4 $ 1,404.7 $ 2,399.7 $ 473.4 $ 5,021.2 Troubled Debt Restructurings The balance of TDRs was $15.9 and $20.6 at December 31, 2015 and 2014, respectively. At modification date, the pre- and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows: 2015 2014 Recorded Investment Recorded Investment Pre-Modification Post-Modification Pre-Modification Post-Modification Fleet $ 9.9 $ 9.9 $ 22.0 $ 22.0 Owner/Operator .5 .5 .3 .3 $ 10.4 $ 10.4 $ 22.3 $ 22.3 The effect on the allowance for credit losses from such modifications was not significant at December 31, 2015 and 2014. The post-modification recorded investment of finance receivables modified as TDRs during the previous twelve months that subsequently defaulted (i.e. became more than 30 days past due) during the periods by portfolio class are as follows: Year ended December 31 2015 2014 Fleet $ 5.0 Owner/Operator .1 $ .1 $ 5.1 $ .1 The TDRs that subsequently defaulted during 2015 included one fleet customer and resulted in a specific reserve of $1.4 as of December 31, 2015. The TDRs that subsequently defaulted during 2014 did not significantly impact the Company’s allowance for credit losses at December 31, 2014. Repossessions When the Company determines that a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for loans, finance leases and equipment under operating leases. The Company records the vehicles as used truck inventory included in Other assets on the Balance Sheets. The balance of repossessed units at December 31, 2015 and 2014 was $7.2 and $6.6, respectively. Proceeds from the sales of repossessed assets were $11.6, $18.6 and $19.5 for the years ended December 31, 2015, 2014 and 2013, respectively. These amounts are included in Proceeds from disposal of equipment on the Statements of Cash Flows. Write-downs of repossessed equipment under operating leases are recorded as impairments and included in Depreciation and other rental expenses on the Statements of Income.

Equipment On Operating Leases

Equipment On Operating Leases	12 Months Ended
	Dec. 31, 2015
Leases [Abstract]
Equipment On Operating Leases	NOTE C – EQUIPMENT ON OPERATING LEASES Terms of operating leases at origination and the related depreciation, generally range from three to five years. The total future annual minimum rental payments to be received for equipment on non-cancelable operating leases beginning January 1, 2016 of $684.8 are due as follows: $269.3 in 2016, $216.2 in 2017, $130.0 in 2018, $52.7 in 2019, and $16.6 in 2020 and thereafter. Depreciation expense related to equipment on operating leases was $245.2, $231.0 and $208.8 in 2015, 2014 and 2013, respectively. Substantially all equipment on operating leases is manufactured by PACCAR.

Transactions with PACCAR and Af

Transactions with PACCAR and Affiliates	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Transactions with PACCAR and Affiliates	NOTE D – TRANSACTIONS WITH PACCAR AND AFFILIATES The Company and PACCAR are parties to a Support Agreement that obligates PACCAR to provide, when required, financial assistance to the Company to ensure that the Company maintains a ratio of earnings to fixed charges (as defined in the Support Agreement) of at least 1.25 to 1 for any fiscal year. The required ratio for the years ended December 31, 2015, 2014 and 2013 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. Loans to these foreign affiliates during 2015 and 2014 were denominated in United States dollars. The foreign affiliates primarily provide financing and leasing of PACCAR manufactured trucks and related equipment sold through the DAF, Kenworth, and Peterbilt independent dealer networks in Europe, Mexico, Canada 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. Loans due to PACCAR of $218.0 were repaid upon maturity in February 2014. The Company recognized interest expense of $1.8 and $15.0 in 2014 and 2013, respectively, on the borrowings from PACCAR. Cash paid for interest on these borrowings was $7.5 and $15.0 in 2014 and 2013, respectively. Amounts outstanding at December 31, 2015 and 2014, including foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada and Australia, are summarized below: December 31 2015 December 31 2014 Due from PACCAR and affiliates Loans due from PACCAR $ 723.5 $ 830.5 Loans due from foreign finance affiliates 223.0 361.0 Direct financing leases due from affiliate .5 15.1 Tax-related receivable due from PACCAR 1.5 Receivables 84.7 82.3 $ 1,033.2 $ 1,288.9 Due to PACCAR and affiliates Tax-related payable due to PACCAR $ 11.8 Payables $ 14.9 45.4 $ 14.9 $ 57.2 The Company is included in the consolidated federal income tax return of PACCAR. The tax-related receivable due from PACCAR and the tax-related payable due to PACCAR represent the related tax benefit or provision to be settled with PACCAR. The Company provides direct financing leases to dealer locations operated by an affiliate of PACCAR. PACCAR has issued letters of credit as of December 31, 2015 in the amount of $2.0 on behalf of the Company to guarantee funds for payment to insured franchisees and customers for any future insurance losses. PACCAR charges the Company for certain administrative services it provides. These costs were charged to the Company based upon the Company’s use of the services and PACCAR’s cost. Fees for the services were $4.5, $4.7 and $2.9 in 2015, 2014 and 2013, respectively, and are included in Additional paid-in capital. The Company’s principal office is located in the corporate headquarters building of PACCAR (owned by PACCAR). The Company also leases office space from another facility owned by PACCAR and four facilities leased by PACCAR. Lease payments for the use of these facilities are included in the above-mentioned administrative services charged by PACCAR. The Company’s employees and PACCAR employees are covered by a defined benefit pension plan sponsored by PACCAR. The assets and liabilities of the plan are reflected on the balance sheets of PACCAR. PACCAR contributes to the plan and allocates the expenses to the Company based principally on the number of eligible plan participants. Expenses for the defined benefit pension plan were $3.5, $2.4 and $2.9 for the years 2015, 2014 and 2013, respectively, and are included in Selling, general and administrative expenses. The Company’s employees and PACCAR employees are also covered by a defined contribution plan, sponsored by PACCAR. Expenses are based on the actual contribution made on the behalf of participating employees. Expenses incurred by the Company for the defined contribution plan were $1.2, $1.1 and $1.1 for the years 2015, 2014 and 2013, respectively, and are included in Selling, general and administrative expenses.

Stockholder's Equity

Stockholder's Equity	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Stockholder's Equity	NOTE E – STOCKHOLDER’S EQUITY Accumulated other comprehensive loss (AOCL) of $1.4 and $1.2 at December 31, 2015 and 2014, respectively, is comprised of the unrealized net loss on derivative contracts, net of taxes. Changes in and reclassifications out of AOCL during 2015, 2014 and 2013 are as follows: 2015 2014 2013 Balance at beginning of year $ (1.2 ) $ (2.7 ) $ (7.7 ) Amounts recorded in AOCL Unrealized loss on derivative contracts (7.5 ) (7.4 ) Income tax effect 2.9 2.7 Amounts reclassified out of AOCL Interest and other borrowing costs 7.2 9.9 8.0 Income taxes (2.8 ) (3.7 ) (3.0 ) Net other comprehensive (loss) income (.2 ) 1.5 5.0 Balance at end of year $ (1.4 ) $ (1.2 ) $ (2.7 )

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	NOTE F – DERIVATIVE FINANCIAL INSTRUMENTS Interest-rate contracts involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency. The Company is exposed to interest rate risk caused by market volatility as a result of its borrowing activities. The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings. Net amounts paid or received are reflected as adjustments to interest expense. At December 31, 2015, the notional amount of these contracts totaled $1,115.0 with amounts expiring over the next five years. Notional maturities for all interest-rate contracts are $392.0 for 2016, $150.0 for 2017, $490.0 for 2018, $43.0 for 2019 and $40.0 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: 2015 2014 Assets Liabilities Assets Liabilities Interest-rate contracts: Other assets $ 1.5 $ .9 Accounts payable, accrued expenses and other $ 3.3 $ 3.6 Gross amounts recognized in Balance Sheets 1.5 3.3 .9 3.6 Less amounts not offset in financial instruments: (.8 ) (.8 ) (.4 ) (.4 ) Pro-forma net amount $ .7 $ 2.5 $ .5 $ 3.2 Cash Flow Hedges Certain of the Company’s interest-rate contracts have been designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in AOCL 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 years ended December 31, 2015, 2014 and 2013. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is five years. Amounts in AOCL are reclassified into net income in the same period in which the hedged transaction affects earnings. The amount of loss recorded in AOCL at December 31, 2015 that is estimated to be reclassified to interest expense in the following 12 months if interest rates remain unchanged is approximately $1.8, net of taxes. The fixed interest earned on finance receivables will offset the amount recognized in interest expense, resulting in a stable interest margin consistent with the Company’s interest rate risk management strategy. Fair Value Hedges Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with the changes in fair value of the hedged item attributable to the risk being hedged. The (income) or expense recognized in earnings related to fair value hedges was included in Interest and other borrowing costs in the Statements of Income as follows: Year ended December 31 2015 2014 2013 Interest-rate swaps $ (.9 ) Term notes $ .6

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Borrowings	NOTE G – BORROWINGS The carrying amounts of borrowings are summarized as follows: 2015 2014 Effective Borrowings Effective Borrowings Commercial paper .4 % $ 1,434.4 .4 % $ 1,500.6 Medium-term notes 1.4 % 4,399.7 1.2 % 4,149.5 1.1 % $ 5,834.1 1.0 % $ 5,650.1 The commercial paper and medium-term notes of $5,834.1 and $5,650.1 at December 31, 2015 and 2014 include a net effect of fair value hedges and unamortized discounts of $(.6) and $(.5), respectively. The effective rate is the weighted average rate as of December 31, 2015 and includes the effects of interest-rate swap agreements. The annual principal maturities of the borrowings are as follows: Commercial Term Total 2016 $ 1,434.7 $ 1,250.0 $ 2,684.7 2017 1,300.0 1,300.0 2018 1,300.0 1,300.0 2019 550.0 550.0 $ 1,434.7 $ 4,400.0 $ 5,834.7 Interest expense on borrowings amounted to $60.3, $51.8, and $44.2 for 2015, 2014 and 2013, respectively. Interest paid on borrowings was $56.1, $50.7, and $40.8 in 2015, 2014 and 2013, respectively. In November 2015, the Company filed a shelf registration statement under the Securities Act of 1933. The registration expires in November 2018 and does not limit the principal amount of debt securities that may be issued during the period. See “Note D – Transactions with PACCAR and Affiliates” for discussion of borrowings from PACCAR.

Credit Arrangements

Credit Arrangements	12 Months Ended
	Dec. 31, 2015
Text Block [Abstract]
Credit Arrangements	NOTE H – CREDIT ARRANGEMENTS The Company participated with PACCAR and certain other PACCAR affiliates in syndicated credit facilities of $3,000.0 at December 31, 2015. Of this amount, $1,000.0 expires in June 2016, $1,000.0 expires in June 2019 and $1,000.0 expires in June 2020. PACCAR and the Company intend to replace these credit facilities on or before expiration with facilities of similar amounts and duration. Of the $3,000.0 credit facilities, $1,904.0 is available for use by the Company and/or PACCAR and PACCAR Financial Europe. The remaining $1,096.0 is allocated to other non-U.S. PACCAR financial subsidiaries. These credit facilities are used to provide backup liquidity for the Company’s commercial paper and maturing medium-term notes. The Company is liable only for its own borrowings under these credit facilities. There were no borrowings under these credit facilities in 2015.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	NOTE I – INCOME TAXES The Company’s effective income tax rate was 38.1% for 2015 compared to 37.9% for 2014. The provision for income taxes consisted of the following: Year ended December 31 2015 2014 2013 Current provision (benefit) Federal $ 60.4 $ 102.8 $ (9.7 ) State 1.1 1.5 (1.9 ) 61.5 104.3 (11.6 ) Deferred provision (benefit) Federal .3 (44.3 ) 60.9 State 7.6 6.4 10.9 7.9 (37.9 ) 71.8 Total provision for income taxes $ 69.4 $ 66.4 $ 60.2 A reconciliation between the statutory federal income tax rate to the actual provision for income taxes is shown below: Year ended December 31 2015 2014 2013 Statutory rate 35.0 % 35.0 % 35.0 % Effect of: State 3.1 % 3.0 % 3.5 % Other (.1 %) (.7 %) 38.1 % 37.9 % 37.8 % Cash paid for income taxes was $3.6, $3.7, and $4.1 in 2015, 2014 and 2013, respectively. The tax effects of temporary differences representing deferred tax assets and liabilities are as follows: December 31 December 31 2015 2014 Deferred tax assets: Allowance for losses on receivables $ 22.6 $ 21.3 Derivative liability 1.2 1.0 Other 8.0 8.1 Deferred tax liabilities: Asset capitalization and depreciation (805.5 ) (796.3 ) Net deferred tax liability $ (773.7 ) $ (765.9 )

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE J – FAIR VALUE MEASUREMENTS Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below: Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment. Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. There were no transfers of assets or liabilities between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2015. 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. Derivative contracts are measured on a recurring basis. The Company’s assets and liabilities subject to fair value measurements are as follows: Level 2 December 31 December 31 Assets: Impaired loans, net of specific reserves (2015 - $2.3 and 2014 - nil) $ 9.0 $ 11.3 Used trucks held for sale 16.9 3.0 Derivative contracts 1.5 .9 Liabilities: Derivative contracts $ 3.3 $ 3.6 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: Used Trucks Held for Sale: Derivative Financial Instruments: 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: Net Receivables: Commercial Paper and Medium-Term Notes: The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows: December 31 December 31 2015 2014 Carrying Fair Carrying Fair Value Assets: Due from PACCAR $ 608.5 $ 611.4 $ 725.5 $ 730.3 Due from foreign finance affiliates 96.0 96.8 171.0 172.0 Fixed rate loans 2,790.3 2,842.9 2,619.6 2,655.7 Liabilities: Fixed rate debt $ 3,699.7 $ 3,716.1 $ 3,249.5 $ 3,265.7

Quarterly Results

Quarterly Results	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Quarterly Results	NOTE K – QUARTERLY RESULTS (UNAUDITED) QUARTER First Second Third Fourth 2015 Interest and other revenues $ 142.5 $ 151.3 $ 160.0 $ 150.3 Income before income taxes 46.0 44.9 46.9 44.4 Net income 29.2 27.6 28.3 27.7 2014 Interest and other revenues $ 134.8 $ 139.7 $ 143.4 $ 145.6 Income before income taxes 39.9 42.0 45.9 47.2 Net income 24.7 26.0 26.1 31.8

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE L – COMMITMENTS AND CONTINGENCIES The Company is a party to various routine legal proceedings incidental to its business involving the collection of accounts and other matters. The Company believes that any reasonably possible range of losses with respect to these matters in addition to amounts accrued is not material to the Company’s financial statements. At December 31, 2015, the Company has loan and lease commitments of $282.6 expiring within one year. These commitments represent commitments to fund new retail loan and lease contracts.

Significant Accounting Polici21

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Description of Operations and Basis of Presentation	Description of Operations and Basis of Presentation PACCAR Financial Corp. (the “Company”), is a wholly owned subsidiary of PACCAR Inc (“PACCAR”). The Company primarily provides financing of PACCAR manufactured trucks and related equipment sold by authorized dealers. The Company also finances dealer inventories of transportation equipment and franchises Kenworth and Peterbilt dealerships to engage in full-service and finance leasing. The operations of the Company are fundamentally affected by its relationship with PACCAR. Due to the nature of the Company’s business, customers are concentrated in the transportation industry throughout the United States. Generally, all receivables are collateralized by the equipment being financed. The risk of credit losses related to this concentration has been considered in establishing the allowance for credit losses.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Finance and Other Receivables	Finance and Other Receivables: Loans Finance leases Dealer wholesale financing Operating lease receivables and other
Allowance for Credit Losses	Allowance for Credit Losses: The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases in the normal course of its operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies loans and finance leases for credit reasons and grants a concession, the modifications are classified as troubled debt restructurings (TDR). 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. On average, modifications extended contractual terms by approximately five months and four months in 2015 and 2014, respectively, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at December 31, 2015 or 2014. 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 periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and, in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over 36 to 60 months, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves. The Company individually evaluates certain finance receivables for 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 generally 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. The Company evaluates finance receivables that are not individually impaired on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data 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 uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment.
Revenue Recognition	Revenue Recognition Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts, generally 36 to 60 months, using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at December 31, 2015 or December 31, 2014. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. The Company recognizes revenue on the sale of used trucks acquired from PACCAR truck division customers as part of new truck sales packages when the used trucks are invoiced and delivered to a customer.
Equipment on Operating Leases	Equipment on Operating Leases Equipment on operating leases is recorded at cost and is depreciated on the straight-line basis to its estimated residual value. Residual values are reviewed regularly and adjusted if market conditions warrant.
Derivative Financial Instruments	Derivative Financial Instruments: As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rate risk. Certain derivative instruments designated as either cash flow hedges or fair value hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as economic hedges. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. The Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its swap counterparties is limited to the asset position of its swap portfolio. The asset position of the Company’s swap portfolio was $1.5 and $.9 at December 31, 2015 and 2014, respectively. The Company uses regression analysis to assess effectiveness of interest-rate contracts on a quarterly basis. All components of the derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Gains or losses on the ineffective portion of cash flow hedges are recognized in current earnings. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge.
Income Taxes	Income Taxes The Company is included in the consolidated federal income tax return of PACCAR. Federal income taxes for the Company are determined on a separate return basis, and any related tax liability is paid by the Company to PACCAR and any related tax benefit is paid by PACCAR to the Company. State income taxes, where the Company files combined tax returns with PACCAR, are determined on a blended statutory rate, which is substantially the same as the rate computed on a separate return basis. As of December 31, 2015, the United States Internal Revenue Service has completed examinations of PACCAR’s tax returns for all years through 2010. PACCAR’s tax returns remain subject to examination in most jurisdictions for the years ranging from 2011 through 2015.
Preferred Stock	Preferred Stock The Company’s Articles of Incorporation provide that the 6%, noncumulative, nonvoting preferred stock (100% owned by PACCAR) is redeemable only at the option of the Company’s Board of Directors.
New Accounting Pronouncements	New Accounting Pronouncements: In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-1, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The FASB also issued the following standards, none of which are expected to have a material impact on the Company’s financial statements. STANDARD DESCRIPTION EFFECTIVE DATE* 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. January 1, 2017 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. January 1, 2016 2015-15 Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measure of Debt Issuance Costs Associated with Line-of Credit Arrangements. January 1, 2016 * The Company expects to adopt on the effective date.

Significant Accounting Polici22

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
FASB Issued Standards	The FASB also issued the following standards, none of which are expected to have a material impact on the Company’s financial statements. STANDARD DESCRIPTION EFFECTIVE DATE* 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. January 1, 2017 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. January 1, 2016 2015-15 Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measure of Debt Issuance Costs Associated with Line-of Credit Arrangements. January 1, 2016 * The Company expects to adopt on the effective date.

Finance and Other Receivables (

Finance and Other Receivables (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Finance and Other Receivables	The Company’s finance and other receivables include the following: December 31 December 31 2015 2014 Retail loans $ 2,898.4 $ 2,687.7 Retail direct financing leases 1,717.3 1,699.8 Dealer wholesale financing 967.1 743.4 Dealer master notes 43.0 62.7 Operating lease receivables and other 62.1 31.4 Unearned interest on finance leases (165.3 ) (172.4 ) 5,522.6 5,052.6 Less allowance for credit losses: Loans and leases (55.5 ) (52.4 ) Dealer wholesale financing (2.7 ) (2.8 ) Operating lease receivables and other (1.1 ) (.8 ) $ 5,463.3 $ 4,996.6
Annual Minimum Payments Due on Loans and Leases	Annual minimum payments due on loans and leases are as follows: Loans Finance leases 2016 $ 825.8 $ 426.9 2017 748.3 391.1 2018 604.3 327.3 2019 435.3 258.7 2020 290.1 177.6 Thereafter 37.6 87.7 $ 2,941.4 $ 1,669.3
Allowance for Credit Losses	The allowance for credit losses is summarized as follows: 2015 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 2.8 $ 10.4 $ 42.0 $ .8 $ 56.0 (Benefit) provision for losses (.1 ) (1.2 ) 8.0 .7 7.4 Charge-offs (5.5 ) (.5 ) (6.0 ) Recoveries 1.8 .1 1.9 Balance at December 31 $ 2.7 $ 9.2 $ 46.3 $ 1.1 $ 59.3 2014 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 3.0 $ 11.5 $ 40.0 $ .8 $ 55.3 (Benefit) provision for losses (.2 ) (1.1 ) 6.4 .2 5.3 Charge-offs (5.9 ) (.2 ) (6.1 ) Recoveries 1.5 1.5 Balance at December 31 $ 2.8 $ 10.4 $ 42.0 $ .8 $ 56.0 2013 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 3.9 $ 10.7 $ 37.1 $ 1.1 $ 52.8 (Benefit) provision for losses (.9 ) .8 2.6 (.2 ) 2.3 Charge-offs (6.4 ) (.1 ) (6.5 ) Recoveries 6.7 6.7 Balance at December 31 $ 3.0 $ 11.5 $ 40.0 $ .8 $ 55.3 * Operating lease and other trade receivables
Finance Receivables Evaluated and the Associated Allowances Determined Individually and Collectively	Information regarding finance receivables evaluated and the associated allowances determined individually and collectively is as follows: Dealer Customer Retail Total At December 31, 2015 Wholesale Retail Recorded investment for impaired finance receivables evaluated individually $ 23.6 $ 23.6 Allowance for impaired finance receivables determined individually $ 3.3 $ 3.3 Recorded investment for finance receivables evaluated collectively $ 967.1 $ 1,398.6 $ 3,071.2 $ 5,436.9 Allowance for finance receivables determined collectively $ 2.7 $ 9.2 $ 43.0 $ 54.9 Dealer Customer Retail Total At December 31, 2014 Wholesale Retail Recorded investment for impaired finance receivables evaluated individually $ 24.7 $ 24.7 Allowance for impaired finance receivables determined individually $ 1.7 $ 1.7 Recorded investment for finance receivables evaluated collectively $ 743.4 $ 1,404.7 $ 2,848.4 $ 4,996.5 Allowance for finance receivables determined collectively $ 2.8 $ 10.4 $ 40.3 $ 53.5
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: December 31 2015 December 31 2014 Fleet $ 21.7 $ 23.0 Owner/Operator 1.9 1.7 $ 23.6 $ 24.7
Impaired Loans and Specific Reserve	Impaired loans are summarized below. The impaired loans with a specific reserve represent the unpaid principal balance. The recorded investment of impaired loans as of December 31, 2015 and 2014 was not significantly different than the unpaid principal balance. Dealer Customer Retail At December 31, 2015 Wholesale Retail Fleet Owner/ Total Impaired loans with a specific reserve $ 13.1 $ 1.6 $ 14.7 Associated allowance (2.8 ) (.3 ) (3.1 ) Net carrying amount of impaired loans with a specific reserve 10.3 1.3 11.6 Impaired loans with no specific reserve 6.4 .2 6.6 Net carrying amount of impaired loans $ 16.7 $ 1.5 $ 18.2 Average recorded investment for impaired loans $ 18.7 $ 1.6 $ 20.3 Dealer Customer Retail At December 31, 2014 Wholesale Retail Fleet Owner/ Total Impaired loans with a specific reserve $ 8.3 $ 1.6 $ 9.9 Associated allowance (.9 ) (.4 ) (1.3 ) Net carrying amount of impaired loans with a specific reserve 7.4 1.2 8.6 Impaired loans with no specific reserve 12.2 12.2 Net carrying amount of impaired loans $ 19.6 $ 1.2 $ 20.8 Average recorded investment for impaired loans $ 16.5 $ 1.6 $ 18.1
Interest Income Recognized on Cash Basis	During the period the loans above were considered impaired, interest income recognized on a cash basis was as follows: 2015 2014 2013 Fleet $ 1.0 $ .9 $ 1.4 Owner/Operator .3 .4 .5 $ 1.3 $ 1.3 $ 1.9
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 December 31, 2015 Wholesale Retail Fleet Owner/ Total Performing $ 949.1 $ 1,398.6 $ 2,638.8 $ 423.8 $ 5,410.3 Watch 18.0 8.2 .4 26.6 At-risk 21.7 1.9 23.6 $ 967.1 $ 1,398.6 $ 2,668.7 $ 426.1 $ 5,460.5 Dealer Customer Retail At December 31, 2014 Wholesale Retail Fleet Owner/ Total Performing $ 734.3 $ 1,404.7 $ 2,376.6 $ 471.3 $ 4,986.9 Watch 9.1 .1 .4 9.6 At-risk 23.0 1.7 24.7 $ 743.4 $ 1,404.7 $ 2,399.7 $ 473.4 $ 5,021.2
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 Owner/ At December 31, 2015 Wholesale Retail Fleet Operator Total Current and up to 30 days past-due $ 967.1 $ 1,398.6 $ 2,656.0 $ 424.9 $ 5,446.6 31 – 60 days past-due 4.0 .5 4.5 Greater than 60 days past-due 8.7 .7 9.4 $ 967.1 $ 1,398.6 $ 2,668.7 $ 426.1 $ 5,460.5 Dealer Customer Retail Owner/ At December 31, 2014 Wholesale Retail Fleet Operator Total Current and up to 30 days past-due $ 743.4 $ 1,404.7 $ 2,398.1 $ 472.5 $ 5,018.7 31 – 60 days past-due 1.0 1.0 Greater than 60 days past-due .6 .9 1.5 $ 743.4 $ 1,404.7 $ 2,399.7 $ 473.4 $ 5,021.2
Pre-Modification and Post-Modification Recorded Investment Balances by Portfolio Class	At modification date, the pre- and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows: 2015 2014 Recorded Investment Recorded Investment Pre-Modification Post-Modification Pre-Modification Post-Modification Fleet $ 9.9 $ 9.9 $ 22.0 $ 22.0 Owner/Operator .5 .5 .3 .3 $ 10.4 $ 10.4 $ 22.3 $ 22.3
TDRs Modified During Previous Twelve Months that Subsequently Defaulted by Portfolio Class	TDRs during the previous twelve months that subsequently defaulted (i.e. became more than 30 days past due) during the periods by portfolio class are as follows: Year ended December 31 2015 2014 Fleet $ 5.0 Owner/Operator .1 $ .1 $ 5.1 $ .1

Transactions with PACCAR and 24

Transactions with PACCAR and Affiliates (Tables)	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Amounts Outstanding Including Foreign Finance Affiliates	Amounts outstanding at December 31, 2015 and 2014, including foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada and Australia, are summarized below: December 31 2015 December 31 2014 Due from PACCAR and affiliates Loans due from PACCAR $ 723.5 $ 830.5 Loans due from foreign finance affiliates 223.0 361.0 Direct financing leases due from affiliate .5 15.1 Tax-related receivable due from PACCAR 1.5 Receivables 84.7 82.3 $ 1,033.2 $ 1,288.9 Due to PACCAR and affiliates Tax-related payable due to PACCAR $ 11.8 Payables $ 14.9 45.4 $ 14.9 $ 57.2

Stockholder's Equity (Tables)

Stockholder's Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Changes in and Reclassifications out of Accumulated Other Comprehensive Income	Changes in and reclassifications out of AOCL during 2015, 2014 and 2013 are as follows: 2015 2014 2013 Balance at beginning of year $ (1.2 ) $ (2.7 ) $ (7.7 ) Amounts recorded in AOCL Unrealized loss on derivative contracts (7.5 ) (7.4 ) Income tax effect 2.9 2.7 Amounts reclassified out of AOCL Interest and other borrowing costs 7.2 9.9 8.0 Income taxes (2.8 ) (3.7 ) (3.0 ) Net other comprehensive (loss) income (.2 ) 1.5 5.0 Balance at end of year $ (1.4 ) $ (1.2 ) $ (2.7 )

Derivative Financial Instrume26

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Balance Sheet Classification, Fair Value and Gross and Net Amounts of Derivative Financial Instruments	The following table presents the balance sheet classification, fair value and gross and net amounts of derivative financial instruments: 2015 2014 Assets Liabilities Assets Liabilities Interest-rate contracts: Other assets $ 1.5 $ .9 Accounts payable, accrued expenses and other $ 3.3 $ 3.6 Gross amounts recognized in Balance Sheets 1.5 3.3 .9 3.6 Less amounts not offset in financial instruments: (.8 ) (.8 ) (.4 ) (.4 ) Pro-forma net amount $ .7 $ 2.5 $ .5 $ 3.2
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 (income) or expense recognized in earnings related to fair value hedges was included in Interest and other borrowing costs in the Statements of Income as follows: Year ended December 31 2015 2014 2013 Interest-rate swaps $ (.9 ) Term notes $ .6

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Summary of Borrowings	The carrying amounts of borrowings are summarized as follows: 2015 2014 Effective Borrowings Effective Borrowings Commercial paper .4 % $ 1,434.4 .4 % $ 1,500.6 Medium-term notes 1.4 % 4,399.7 1.2 % 4,149.5 1.1 % $ 5,834.1 1.0 % $ 5,650.1
Summary Of Annual Maturities	The annual principal maturities of the borrowings are as follows: Commercial Term Total 2016 $ 1,434.7 $ 1,250.0 $ 2,684.7 2017 1,300.0 1,300.0 2018 1,300.0 1,300.0 2019 550.0 550.0 $ 1,434.7 $ 4,400.0 $ 5,834.7

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Components Of Provision for Income Taxes	The provision for income taxes consisted of the following: Year ended December 31 2015 2014 2013 Current provision (benefit) Federal $ 60.4 $ 102.8 $ (9.7 ) State 1.1 1.5 (1.9 ) 61.5 104.3 (11.6 ) Deferred provision (benefit) Federal .3 (44.3 ) 60.9 State 7.6 6.4 10.9 7.9 (37.9 ) 71.8 Total provision for income taxes $ 69.4 $ 66.4 $ 60.2
Reconciliation Of Statutory and Effective Income Tax Rates	A reconciliation between the statutory federal income tax rate to the actual provision for income taxes is shown below: Year ended December 31 2015 2014 2013 Statutory rate 35.0 % 35.0 % 35.0 % Effect of: State 3.1 % 3.0 % 3.5 % Other (.1 %) (.7 %) 38.1 % 37.9 % 37.8 %
Deferred Tax Assets and Liabilities	The tax effects of temporary differences representing deferred tax assets and liabilities are as follows: December 31 December 31 2015 2014 Deferred tax assets: Allowance for losses on receivables $ 22.6 $ 21.3 Derivative liability 1.2 1.0 Other 8.0 8.1 Deferred tax liabilities: Asset capitalization and depreciation (805.5 ) (796.3 ) Net deferred tax liability $ (773.7 ) $ (765.9 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Assets and Liabilities Fair Value Measurements	The Company’s assets and liabilities subject to fair value measurements are as follows: Level 2 December 31 December 31 Assets: Impaired loans, net of specific reserves (2015 - $2.3 and 2014 - nil) $ 9.0 $ 11.3 Used trucks held for sale 16.9 3.0 Derivative contracts 1.5 .9 Liabilities: Derivative contracts $ 3.3 $ 3.6
Carrying Amount and Fair Value Fixed-Rate Loans and Fixed-Rate Debt	The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows: December 31 December 31 2015 2014 Carrying Fair Carrying Fair Value Assets: Due from PACCAR $ 608.5 $ 611.4 $ 725.5 $ 730.3 Due from foreign finance affiliates 96.0 96.8 171.0 172.0 Fixed rate loans 2,790.3 2,842.9 2,619.6 2,655.7 Liabilities: Fixed rate debt $ 3,699.7 $ 3,716.1 $ 3,249.5 $ 3,265.7

Quarterly Results (Tables)

Quarterly Results (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information	QUARTER First Second Third Fourth 2015 Interest and other revenues $ 142.5 $ 151.3 $ 160.0 $ 150.3 Income before income taxes 46.0 44.9 46.9 44.4 Net income 29.2 27.6 28.3 27.7 2014 Interest and other revenues $ 134.8 $ 139.7 $ 143.4 $ 145.6 Income before income taxes 39.9 42.0 45.9 47.2 Net income 24.7 26.0 26.1 31.8

Significant Accounting Polici31

Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)Segment	Dec. 31, 2014USD ($)
Accounting Policies [Abstract]
Number of portfolio segments | Segment	2
Receivables more than 90 days past due still accruing	$ 0	$ 0
Interest rate swap portfolio	$ 1,500,000	$ 900,000
Preferred stock dividend percentage	6.00%
Ownership percentage of PACCAR	100.00%
Internal Revenue Service (IRS)
Accounting Policies [Abstract]
Income tax examination, description	The United States Internal Revenue Service has completed examinations of PACCAR's tax returns for all years through 2010. PACCAR's tax returns remain subject to examination in most jurisdictions for the years ranging from 2011 through 2015.
Earliest Tax Year | Internal Revenue Service (IRS)
Accounting Policies [Abstract]
Tax years subject to examination	2,011
Latest Tax Year | Internal Revenue Service (IRS)
Accounting Policies [Abstract]
Tax years subject to examination	2,015
Extended Maturity
Accounting Policies [Abstract]
Modifications extended contractual terms	5 months	4 months
Minimum | Loans Receivable
Accounting Policies [Abstract]
Contractual term of regular payment of principal and interest	36 months
Minimum | Finance Leases Financing Receivable
Accounting Policies [Abstract]
Origination costs, amortization period	36 months
Maximum | Loans Receivable
Accounting Policies [Abstract]
Contractual term of regular payment of principal and interest	60 months
Maximum | Finance Leases Financing Receivable
Accounting Policies [Abstract]
Origination costs, amortization period	60 months

FASB Issued Standards (Detail)

FASB Issued Standards (Detail)	12 Months Ended
	Dec. 31, 2015
Accounting Standards Update 2015-11
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
DESCRIPTION	Inventory (Topic 330): Simplifying the Measurement of Inventory.
EFFECTIVE DATE	Jan. 1, 2017	[1]
Accounting Standards Update 2015-03
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
DESCRIPTION	Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.
EFFECTIVE DATE	Jan. 1, 2016	[1]
Accounting Standards Update 2015-15
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
DESCRIPTION	Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measure of Debt Issuance Costs Associated with Line-of Credit Arrangements.
EFFECTIVE DATE	Jan. 1, 2016	[1]
[1]	The Company expects to adopt on the effective date.

Finance and Other Receivables33

Finance and Other Receivables (Detail) - USD ($) $ in Millions		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Retail loans		$ 2,898.4	$ 2,687.7
Retail direct financing leases		1,717.3	1,699.8
Dealer wholesale financing		967.1	743.4
Dealer master notes		43	62.7
Operating lease receivables and other		62.1	31.4
Unearned interest on finance leases		(165.3)	(172.4)
Total portfolio		5,522.6	5,052.6
Allowance for credit losses		(59.3)	(56)	$ (55.3)	$ (52.8)
Total portfolio, net of allowance for credit losses		5,463.3	4,996.6
Loans and Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses		(55.5)	(52.4)
Dealer | Wholesale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses		(2.7)	(2.8)	(3)	(3.9)
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	[1]	$ (1.1)	$ (0.8)	$ (0.8)	$ (1.1)
[1]	Operating lease and other trade receivables

Annual Minimum Payment Due on L

Annual Minimum Payment Due on Loans and Leases (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment of finance receivables that are on non-accrual status	$ 23.6	$ 24.7
Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
2,016	825.8
2,017	748.3
2,018	604.3
2,019	435.3
2,020	290.1
Thereafter	37.6
Recorded investment of finance receivables that are on non-accrual status	2,941.4
Finance Leases Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
2,016	426.9
2,017	391.1
2,018	327.3
2,019	258.7
2,020	177.6
Thereafter	87.7
Recorded investment of finance receivables that are on non-accrual status	$ 1,669.3

Finance and Other Receivables -

Finance and Other Receivables - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)Contract	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring	$ 15.9	$ 20.6
Repossessed inventory	7.2	6.6
Proceeds from sales of repossessed assets	$ 11.6	$ 18.6	$ 19.5
Financing Receivable | Customer Concentration Risk | Swift Transportation Corporation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers diversification in portfolio	13.80%	14.40%	11.40%
Finance Leases Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated residual values included with finance leases	$ 48	$ 49.1
Customer Retail | Fleet
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring	$ 1.4
TDR's subsequently defaulted, number of contracts | Contract	1
Minimum | Financing Receivable | Credit Concentration Risk
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of customers diversification in portfolio	10.00%	10.00%

Allowance for Credit Losses (De

Allowance for Credit Losses (Detail) - USD ($) $ in Millions		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		$ 56	$ 55.3	$ 52.8
(Benefit) provision for losses		7.4	5.3	2.3
Charge-offs		(6)	(6.1)	(6.5)
Recoveries		1.9	1.5	6.7
Ending Balance		59.3	56	55.3
Dealer | Wholesale
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		2.8	3	3.9
(Benefit) provision for losses		(0.1)	(0.2)	(0.9)
Ending Balance		2.7	2.8	3
Dealer | Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		10.4	11.5	10.7
(Benefit) provision for losses		(1.2)	(1.1)	0.8
Ending Balance		9.2	10.4	11.5
Customer Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		42	40	37.1
(Benefit) provision for losses		8	6.4	2.6
Charge-offs		(5.5)	(5.9)	(6.4)
Recoveries		1.8	1.5	6.7
Ending Balance		46.3	42	40
Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	[1]	0.8	0.8	1.1
(Benefit) provision for losses	[1]	0.7	0.2	(0.2)
Charge-offs	[1]	(0.5)	(0.2)	(0.1)
Recoveries	[1]	0.1
Ending Balance	[1]	$ 1.1	$ 0.8	$ 0.8
[1]	Operating lease and other trade receivables

Finance Receivables Evaluated a

Finance Receivables Evaluated and the Associated Allowances Determined Individually and Collectively (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Recorded investment for impaired finance receivables evaluated individually	$ 23.6	$ 24.7
Allowance for impaired finance receivables determined individually	3.3	1.7
Recorded investment for finance receivables evaluated collectively	5,436.9	4,996.5
Allowance for finance receivables determined collectively	54.9	53.5
Dealer | Wholesale
Financing Receivable, Allowance for Credit Losses [Line Items]
Recorded investment for finance receivables evaluated collectively	967.1	743.4
Allowance for finance receivables determined collectively	2.7	2.8
Dealer | Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Recorded investment for finance receivables evaluated collectively	1,398.6	1,404.7
Allowance for finance receivables determined collectively	9.2	10.4
Customer Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Recorded investment for impaired finance receivables evaluated individually	23.6	24.7
Allowance for impaired finance receivables determined individually	3.3	1.7
Recorded investment for finance receivables evaluated collectively	3,071.2	2,848.4
Allowance for finance receivables determined collectively	$ 43	$ 40.3

Recorded Investment for Finance

Recorded Investment for Finance Receivables that are on Non-accrual Status (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment of finance receivables that are on non-accrual status	$ 23.6	$ 24.7
Customer Retail | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment of finance receivables that are on non-accrual status	21.7	23
Customer Retail | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded investment of finance receivables that are on non-accrual status	$ 1.9	$ 1.7

Impaired Loans and Specific Res

Impaired Loans and Specific Reserve (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Impaired loans with a specific reserve	$ 14.7	$ 9.9
Associated allowance	(3.1)	(1.3)
Net carrying amount of impaired loans with a specific reserve	11.6	8.6
Impaired loans with no specific reserve	6.6	12.2
Net carrying amount of impaired loans	18.2	20.8
Average recorded investment for impaired loans	20.3	18.1
Customer Retail | Fleet
Financing Receivable, Impaired [Line Items]
Impaired loans with a specific reserve	13.1	8.3
Associated allowance	(2.8)	(0.9)
Net carrying amount of impaired loans with a specific reserve	10.3	7.4
Impaired loans with no specific reserve	6.4	12.2
Net carrying amount of impaired loans	16.7	19.6
Average recorded investment for impaired loans	18.7	16.5
Customer Retail | Owner/Operator
Financing Receivable, Impaired [Line Items]
Impaired loans with a specific reserve	1.6	1.6
Associated allowance	(0.3)	(0.4)
Net carrying amount of impaired loans with a specific reserve	1.3	1.2
Impaired loans with no specific reserve	0.2
Net carrying amount of impaired loans	1.5	1.2
Average recorded investment for impaired loans	$ 1.6	$ 1.6

Interest Income Recognized (Det

Interest Income Recognized (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest income recognized:
Interest income recognized on a cash basis	$ 1.3	$ 1.3	$ 1.9
Customer Retail | Fleet
Interest income recognized:
Interest income recognized on a cash basis	1	0.9	1.4
Customer Retail | Owner/Operator
Interest income recognized:
Interest income recognized on a cash basis	$ 0.3	$ 0.4	$ 0.5

Financing Receivables by Credit

Financing Receivables by Credit Quality Indicator (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	$ 5,460.5	$ 5,021.2
Performing
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	5,410.3	4,986.9
Watch
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	26.6	9.6
At-risk
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	23.6	24.7
Dealer | Wholesale
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	967.1	743.4
Dealer | Wholesale | Performing
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	949.1	734.3
Dealer | Wholesale | Watch
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	18	9.1
Dealer | Retail
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	1,398.6	1,404.7
Dealer | Retail | Performing
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	1,398.6	1,404.7
Customer Retail | Fleet
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	2,668.7	2,399.7
Customer Retail | Fleet | Performing
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	2,638.8	2,376.6
Customer Retail | Fleet | Watch
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	8.2	0.1
Customer Retail | Fleet | At-risk
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	21.7	23
Customer Retail | Owner/Operator
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	426.1	473.4
Customer Retail | Owner/Operator | Performing
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	423.8	471.3
Customer Retail | Owner/Operator | Watch
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	0.4	0.4
Customer Retail | Owner/Operator | At-risk
Financing Receivable, Recorded Investment [Line Items]
Financing Receivables	$ 1.9	$ 1.7

Financing Receivables by Aging

Financing Receivables by Aging Category (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, current and up to 30 days past due	$ 5,446.6	$ 5,018.7
Financing Receivables	5,460.5	5,021.2
31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	4.5	1
Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	9.4	1.5
Dealer | Wholesale
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, current and up to 30 days past due	967.1	743.4
Financing Receivables	967.1	743.4
Dealer | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, current and up to 30 days past due	1,398.6	1,404.7
Financing Receivables	1,398.6	1,404.7
Customer Retail | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, current and up to 30 days past due	2,656	2,398.1
Financing Receivables	2,668.7	2,399.7
Customer Retail | Fleet | 31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	4	1
Customer Retail | Fleet | Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	8.7	0.6
Customer Retail | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, current and up to 30 days past due	424.9	472.5
Financing Receivables	426.1	473.4
Customer Retail | Owner/Operator | 31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	0.5
Customer Retail | Owner/Operator | Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing receivables, past due	$ 0.7	$ 0.9

Pre and Post Modification Recor

Pre and Post Modification Recorded Investment (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
Pre-Modification Recorded Investment	$ 10.4	$ 22.3
Post-Modification Recorded Investment	10.4	22.3
Customer Retail | Fleet
Financing Receivable, Modifications [Line Items]
Pre-Modification Recorded Investment	9.9	22
Post-Modification Recorded Investment	9.9	22
Customer Retail | Owner/Operator
Financing Receivable, Modifications [Line Items]
Pre-Modification Recorded Investment	0.5	0.3
Post-Modification Recorded Investment	$ 0.5	$ 0.3

Post-Modification Recorded Inve

Post-Modification Recorded Investment of Finance Receivables Modified as TDR Modified During Previous Twelve Months that Subsequently Defaulted by Portfolio Class (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
Recorded investment, subsequently defaulted	$ 5.1	$ 0.1
Customer Retail | Fleet
Financing Receivable, Modifications [Line Items]
Recorded investment, subsequently defaulted	5
Customer Retail | Owner/Operator
Financing Receivable, Modifications [Line Items]
Recorded investment, subsequently defaulted	$ 0.1	$ 0.1

Equipment on Operating Leases -

Equipment on Operating Leases - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Minimum
Operating Leased Assets [Line Items]
Operating lease term	3 years
Maximum
Operating Leased Assets [Line Items]
Operating lease term	5 years
Non Cancelable Operating Leases
Operating Leased Assets [Line Items]
Future annual minimum rental payments	$ 684.8
2,016	269.3
2,017	216.2
2,018	130
2,019	52.7
2020 and thereafter	16.6
Depreciation expense	$ 245.2	$ 231	$ 208.8

Transactions with PACCAR and 46

Transactions with PACCAR and Affiliates - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)Facility	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Related Party Transaction [Line Items]
Required ratio of net earnings available for fixed charges to fixed charges	125.00%
Loan maturity period	2014-02
Interest expense on borrowings from PACCAR		$ 1,800,000	$ 15,000,000
Interest paid on borrowings from PACCAR		7,500,000	15,000,000
Letter of credit issued	$ 2,000,000
Administrative services fees	$ 4,500,000	4,700,000	2,900,000
Number of facilities leased by company | Facility	4
Defined benefit pension plan expenses	$ 3,500,000	2,400,000	2,900,000
Defined contribution plan expenses	1,200,000	$ 1,100,000	$ 1,100,000
PACCAR
Related Party Transaction [Line Items]
Loans due to PACCAR	218,000,000
Foreign Finance Affiliates
Related Party Transaction [Line Items]
Loans to foreign affiliates, upper limit	$ 500,000,000

Amounts Outstanding Including F

Amounts Outstanding Including Foreign Finance Affiliates (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Due from PACCAR and affiliates
Loans due from PACCAR	$ 723.5	$ 830.5
Loans due from foreign finance affiliates	223	361
Direct financing leases due from affiliate	0.5	15.1
Tax-related receivable due from PACCAR	1.5
Receivables	84.7	82.3
Total	1,033.2	1,288.9
Due to PACCAR and affiliates
Tax-related payable due to PACCAR		11.8
Payables	14.9	45.4
Total	$ 14.9	$ 57.2

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Equity [Abstract]
Accumulated other comprehensive income (loss)	$ (1.4)	$ (1.2)

Changes in and Reclassification

Changes in and Reclassifications out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (1.2)
Amounts recorded in AOCL
Unrealized loss on derivative contracts	(7.5)	$ (7.4)
Income tax effect	2.9	2.7
Amounts reclassified out of AOCL
Interest and other borrowing costs	7.2	9.9	$ 8
Income taxes	(2.8)	(3.7)	(3)
Net other comprehensive (loss) income	(0.2)	1.5	5
Ending balance	(1.4)	(1.2)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(1.2)	(2.7)	(7.7)
Amounts recorded in AOCL
Unrealized loss on derivative contracts	(7.5)	(7.4)
Income tax effect	2.9	2.7
Amounts reclassified out of AOCL
Interest and other borrowing costs	7.2	9.9	8
Income taxes	(2.8)	(3.7)	(3)
Net other comprehensive (loss) income	(0.2)	1.5	5
Ending balance	$ (1.4)	$ (1.2)	$ (2.7)

Derivative Financial Instrume50

Derivative Financial Instruments - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Notional amount of interest-rate contracts	$ 1,115
Interest-rate contracts maturity period	5 years
Notional maturities for interest-rate contracts 2016	$ 392
Notional maturities for interest-rate contracts 2017	150
Notional maturities for interest-rate contracts 2018	490
Notional maturities for interest-rate contracts 2019	43
Notional maturities for interest-rate contracts 2020	$ 40
Maximum length of time for which company is hedging its exposure to the variability in future cash flows	5 years
Accumulated net loss on interest rate contracts included in AOCL expected to be reclassified to interest expense in the following 12 months	$ 1.8

Balance Sheet Classification, F

Balance Sheet Classification, Fair Value and Gross and Net Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Assets gross amount recognized in balance sheets	$ 1.5	$ 0.9
Less amounts not offset in financial instruments:	(0.8)	(0.4)
Pro-forma net amount	0.7	0.5
Liabilities gross amount recognized in balance sheets	3.3	3.6
Less amounts not offset in financial instruments:	(0.8)	(0.4)
Pro-forma net amount	2.5	3.2
Interest Rate Contract | Other Assets
Derivatives, Fair Value [Line Items]
Assets gross amount recognized in balance sheets	1.5	0.9
Interest Rate Contract | Accounts Payable, Accrued Expenses and Other
Derivatives, Fair Value [Line Items]
Liabilities gross amount recognized in balance sheets	$ 3.3	$ 3.6

(Income) or Expense Recognized

(Income) or Expense Recognized in Earnings Related to Fair Value Hedges (Detail) - Financial Services - Interest and other borrowing costs $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Derivative [Line Items]
Interest-rate swaps	$ (0.9)
Term notes	$ 0.6

Summary of Borrowings (Detail)

Summary of Borrowings (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Effective borrowing rate	1.10%	1.00%
Commercial paper	$ 1,434.4	$ 1,500.6
Medium-term notes	4,399.7	4,149.5
Commercial paper and medium-term notes	$ 5,834.1	$ 5,650.1
Commercial Paper
Debt Instrument [Line Items]
Effective borrowing rate	0.40%	0.40%
Medium-term Notes
Debt Instrument [Line Items]
Effective borrowing rate	1.40%	1.20%

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Commercial paper and medium-term notes	$ 5,834.1	$ 5,650.1
Fair value hedges and unamortized discounts, net	(0.6)	(0.5)
Interest expense on borrowings	60.3	51.8	$ 44.2
Interest paid on borrowings	$ 56.1	$ 50.7	$ 40.8
Medium-term Notes
Debt Instrument [Line Items]
Registration expiration	2018-11

Annual Maturities of Borrowings

Annual Maturities of Borrowings (Detail) $ in Millions	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
2,016	$ 2,684.7
2,017	1,300
2,018	1,300
2,019	550
Debt, Long-term and Short-term, Combined Amount, Total	5,834.7
Commercial Paper
Debt Instrument [Line Items]
2,016	1,434.7
Debt, Long-term and Short-term, Combined Amount, Total	1,434.7
Medium-term Notes
Debt Instrument [Line Items]
2,016	1,250
2,017	1,300
2,018	1,300
2,019	550
Debt, Long-term and Short-term, Combined Amount, Total	$ 4,400

Credit Arrangements - Additiona

Credit Arrangements - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Line of Credit Facility [Line Items]
Credit facility available amount	$ 3,000
PACCAR Financial Europe
Line of Credit Facility [Line Items]
Credit facility available amount	1,904
Other non-U.S. PACCAR financial subsidiaries
Line of Credit Facility [Line Items]
Credit facility available amount	1,096
Syndicated revolving loan facility
Line of Credit Facility [Line Items]
Line of credit, maximum capacity	3,000
Syndicated revolving loan facility | Matures in June 2015
Line of Credit Facility [Line Items]
Line of credit, maximum capacity	$ 1,000
Line of credit, maturity date	2016-06
Syndicated revolving loan facility | Matures in June 2018
Line of Credit Facility [Line Items]
Line of credit, maximum capacity	$ 1,000
Line of credit, maturity date	2019-06
Syndicated revolving loan facility | Matures in June 2019
Line of Credit Facility [Line Items]
Line of credit, maximum capacity	$ 1,000
Line of credit, maturity date	2020-06

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Effective income tax rate	38.10%	37.90%	37.80%
Cash paid for income taxes	$ 3.6	$ 3.7	$ 4.1

Provision for Income Taxes (Det

Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current provision (benefit)
Federal	$ 60.4	$ 102.8	$ (9.7)
State	1.1	1.5	(1.9)
Current Income Tax Expense (Benefit), Total	61.5	104.3	(11.6)
Deferred provision (benefit)
Federal	0.3	(44.3)	60.9
State	7.6	6.4	10.9
Deferred taxes	7.9	(37.9)	71.8
Total provision for income taxes	$ 69.4	$ 66.4	$ 60.2

Reconciliation Between Statutor

Reconciliation Between Statutory Federal Income Tax Rate to Actual Provision for Income Taxes (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Statutory rate	35.00%	35.00%	35.00%
Effect of State	3.10%	3.00%	3.50%
Effect of Other		(0.10%)	(0.70%)
Effective income tax rate	38.10%	37.90%	37.80%

Deferred Tax Assets and Liabili

Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Allowance for losses on receivables	$ 22.6	$ 21.3
Derivative liability	1.2	1
Other	8	8.1
Deferred tax liabilities:
Asset capitalization and depreciation	(805.5)	(796.3)
Net deferred tax liability	$ (773.7)	$ (765.9)

Assets and Liabilities Fair Val

Assets and Liabilities Fair Value Measurements (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Assets:
Derivative contracts	$ 1.5	$ 0.9
Liabilities:
Derivative contracts	3.3	3.6
Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring
Assets:
Impaired loans, net of specific reserves (2015 - $2.3 and 2014 - nil)	9	11.3
Used trucks held for sale	16.9	3
Fair Value, Inputs, Level 2 | Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets:
Derivative contracts	1.5	0.9
Liabilities:
Derivative contracts	$ 3.3	$ 3.6

Assets and Liabilities Fair V62

Assets and Liabilities Fair Value Measurements (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, specific reserves	$ 3.1	$ 1.3
Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, specific reserves	$ 2.3

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Trucks Inventory
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Used truck impairments	$ 3.7	$ 1

Carrying Amount and Fair Value

Carrying Amount and Fair Value for Fixed-Rate Loans and Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Assets:
Due from PACCAR	$ 1,033.2	$ 1,288.9
Due from foreign finance affiliates	223	361
Carrying Amount
Assets:
Due from PACCAR	608.5	725.5
Due from foreign finance affiliates	96	171
Fixed rate loans	2,790.3	2,619.6
Liabilities:
Fixed rate debt	3,699.7	3,249.5
Fair Value
Assets:
Due from PACCAR	611.4	730.3
Due from foreign finance affiliates	96.8	172
Fixed rate loans	2,842.9	2,655.7
Liabilities:
Fixed rate debt	$ 3,716.1	$ 3,265.7

Quarterly Results (Detail)

Quarterly Results (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Interest and other revenues	$ 150.3	$ 160	$ 151.3	$ 142.5	$ 145.6	$ 143.4	$ 139.7	$ 134.8	$ 604.1	$ 563.5	$ 545
Income before income taxes	44.4	46.9	44.9	46	47.2	45.9	42	39.9	182.2	175	159.4
Net income	$ 27.7	$ 28.3	$ 27.6	$ 29.2	$ 31.8	$ 26.1	$ 26	$ 24.7	$ 112.8	$ 108.6	$ 99.2

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Other outstanding commitments to fund new loan and lease transactions	$ 282.6
Commitments expiration term	1 year