Document and Entity Information
| Document and Entity Information - shares | 9 Months Ended | |
| Sep. 30, 2016 | Oct. 31, 2016 | |
| Document And Entity Information [Abstract] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Sep. 30, 2016 | |
| Document Fiscal Year Focus | 2,016 | |
| Document Fiscal Period Focus | Q3 | |
| Trading Symbol | ck0000731288 | |
| Entity Registrant Name | PACCAR FINANCIAL CORP | |
| Entity Central Index Key | 731,288 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Non-accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 145,000 |
STATEMENTS OF COMPREHENSIVE INC
| STATEMENTS OF COMPREHENSIVE INCOME AND RETAINED EARNINGS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
| Income Statement [Abstract] | |||||
| Interest and fee income | $ 60.4 | $ 59.6 | $ 179.2 | $ 174.4 | |
| Operating lease and rental revenues | 88.1 | 85.4 | 259.3 | 251.7 | |
| Used truck sales and other revenues | 8.1 | 15 | 22.9 | 27.7 | |
| TOTAL INTEREST AND OTHER REVENUES | 156.6 | 160 | 461.4 | 453.8 | |
| Interest and other borrowing costs | 21.7 | 17.2 | 61.7 | 49.3 | |
| Depreciation and other rental expenses | 79.1 | 70.3 | 226.7 | 203.3 | |
| Cost of used truck sales and other expenses | 8.2 | 12.7 | 22.8 | 23.6 | |
| Selling, general and administrative expenses | 12.7 | 11.9 | 37.5 | 35.6 | |
| Provision for losses on receivables | 3.5 | 1 | 9.1 | 4.2 | |
| TOTAL EXPENSES | 125.2 | 113.1 | 357.8 | 316 | |
| INCOME BEFORE INCOME TAXES | 31.4 | 46.9 | 103.6 | 137.8 | |
| Income taxes | 9.8 | 18.6 | 36.7 | 52.7 | |
| NET INCOME | 21.6 | 28.3 | 66.9 | 85.1 | |
| COMPREHENSIVE INCOME | 23.3 | 26 | 65.5 | 81.9 | |
| RETAINED EARNINGS AT BEGINNING OF PERIOD | 1,061.3 | 960 | 1,016 | [1] | 903.2 |
| RETAINED EARNINGS AT END OF PERIOD | $ 1,082.9 | $ 988.3 | $ 1,082.9 | $ 988.3 | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | ||||
BALANCE SHEETS
| BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | [1] |
| ASSETS | |||
| Cash | $ 19.5 | $ 35.3 | |
| Finance and other receivables, net of allowance for credit losses (2016 - $58.7 and 2015 - $59.3) | 5,355.6 | 5,463.3 | |
| Due from PACCAR and affiliates | 1,238.5 | 1,033.2 | |
| Equipment on operating leases, net of accumulated depreciation (2016 - $509.7 and 2015 - $498.8) | 1,489.7 | 1,355.5 | |
| Other assets | 279.7 | 163.1 | |
| TOTAL ASSETS | 8,383 | 8,050.4 | |
| LIABILITIES | |||
| Accounts payable, accrued expenses and other | 232.8 | 238.6 | |
| Due to PACCAR and affiliates | 16.9 | 14.9 | |
| Commercial paper | 1,457.7 | 1,434.4 | |
| Medium-term notes | 4,639.3 | 4,399.7 | |
| Deferred taxes and other liabilities | 788.6 | 785.9 | |
| TOTAL LIABILITIES | 7,135.3 | 6,873.5 | |
| 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 | 122.1 | 116.8 | |
| Retained earnings | 1,082.9 | 1,016 | |
| Accumulated other comprehensive loss | (2.8) | (1.4) | |
| TOTAL STOCKHOLDER'S EQUITY | 1,247.7 | 1,176.9 | |
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 8,383 | $ 8,050.4 | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | ||
BALANCE SHEETS (Parenthetical)
| BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | [1] |
| Statement of Financial Position [Abstract] | |||
| Finance and other receivables, allowance for credit losses | $ 58.7 | $ 59.3 | |
| Equipment on operating leases, accumulated depreciation | $ 509.7 | $ 498.8 | |
| 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 | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | ||
STATEMENTS OF CASH FLOWS
| STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | ||
| OPERATING ACTIVITIES | |||
| Net income | $ 66.9 | $ 85.1 | |
| Items included in net income not affecting cash: | |||
| Depreciation and amortization | 216.5 | 192.2 | |
| Provision for losses on receivables | 9.1 | 4.2 | |
| Deferred taxes | 8.1 | (9.1) | |
| Administrative fees for services from PACCAR | 5.3 | 4.1 | |
| Change in tax-related balances with PACCAR | 0.5 | (7.2) | |
| Decrease in payables and other | (47.2) | (53.3) | |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 259.2 | 216 | |
| INVESTING ACTIVITIES | |||
| Finance and other receivables originated | (1,220.7) | (1,430.5) | |
| Collections on finance and other receivables | 1,185.6 | 1,302.9 | |
| Net decrease (increase) in wholesale receivables | 103.3 | (374.7) | |
| Loans to PACCAR and affiliates | (497) | (150) | |
| Collections on loans from PACCAR and affiliates | 380.5 | 260 | |
| Net (increase) decrease in other receivables and leases to PACCAR and affiliates | (82.9) | 137.4 | |
| Acquisition of equipment for operating leases, primarily from PACCAR | (496.8) | (453.1) | |
| Proceeds from disposal of equipment | 99.8 | 146.8 | |
| Other | (14.4) | (47.3) | |
| NET CASH USED IN INVESTING ACTIVITIES | (542.6) | (608.5) | |
| FINANCING ACTIVITIES | |||
| Net increase (decrease) in short-term commercial paper | 23.7 | (126.6) | |
| Proceeds from medium-term notes and other commercial paper | 1,496.8 | 1,303.3 | |
| Payments of medium-term notes and other commercial paper | (1,252.9) | (803.7) | |
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 267.6 | 373 | |
| NET DECREASE IN CASH | (15.8) | (19.5) | |
| CASH AT BEGINNING OF PERIOD | 35.3 | [1] | 42.9 |
| CASH AT END OF PERIOD | $ 19.5 | $ 23.4 | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | ||
Basis of Presentation
| Basis of Presentation | 9 Months Ended |
| Sep. 30, 2016 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation | NOTE A - Basis of Presentation PACCAR Financial Corp. (the “Company”) is a wholly owned subsidiary of PACCAR Inc (“PACCAR”). The Company primarily provides financing of PACCAR manufactured trucks and related equipment sold by authorized dealers. The Company also finances dealer inventories of transportation equipment and franchises Kenworth and Peterbilt dealerships to engage in full-service and finance leasing. The operations of the Company are fundamentally affected by its relationship with PACCAR. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. New Accounting Pronouncements: In October 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) ASU 2016-16 Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In November 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The Company adopted the following standards effective January 1, 2016, none of which had a material impact on the Company’s financial statements. STANDARD DESCRIPTION 2015-03 Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. 2015-15 Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measure of Debt Issuance Costs Associated with Line-of-Credit Arrangements. |
Finance and Other Receivables
| Finance and Other Receivables | 9 Months Ended |
| Sep. 30, 2016 | |
| Receivables [Abstract] | |
| Finance and Other Receivables | NOTE B - Finance and Other Receivables The Company’s finance and other receivables include the following: September 30 December 31 Retail loans $ 2,964.2 $ 2,898.4 Retail direct financing leases 1,637.0 1,717.3 Dealer wholesale financing 863.8 967.1 Dealer master notes 28.7 43.0 Operating lease receivables and other 69.1 62.1 Unearned interest on finance leases (148.5 ) (165.3 ) 5,414.3 5,522.6 Less allowance for credit losses: Loans and leases (55.2 ) (55.5 ) Dealer wholesale financing (2.3 ) (2.7 ) Operating lease receivables and other (1.2 ) (1.1 ) $ 5,355.6 $ 5,463.3 Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at September 30, 2016 or December 31, 2015. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Allowance for Credit Losses The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases in the normal course of its operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. 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 three months in 2016 and four months in 2015, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2016 or December 31, 2015. 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 (generally upon repossession of the collateral). Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records partial charge-offs. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. For the following credit quality disclosures, finance receivables are classified 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. The allowance for credit losses is summarized as follows: 2016 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 2.7 $ 9.2 $ 46.3 $ 1.1 $ 59.3 (Benefit) provision for losses (.4 ) (.5 ) 9.2 .8 9.1 Charge-offs (9.9 ) (.7 ) (10.6 ) Recoveries .9 .9 Balance at September 30 $ 2.3 $ 8.7 $ 46.5 $ 1.2 $ 58.7 2015 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 2.8 $ 10.4 $ 42.0 $ .8 $ 56.0 Provision (benefit) for losses .6 (.8 ) 4.2 .2 4.2 Charge-offs (3.2 ) (.2 ) (3.4 ) Recoveries 1.3 .1 1.4 Balance at September 30 $ 3.4 $ 9.6 $ 44.3 $ .9 $ 58.2 * Operating lease and other trade receivables Information regarding finance receivables evaluated and the associated allowances determined individually and collectively is as follows: Dealer Customer At September 30, 2016 Wholesale Retail Retail Total Recorded investment for impaired finance $ 24.3 $ 24.3 Allowance for impaired finance receivables $ 2.0 $ 2.0 Recorded investment for finance receivables $ 863.8 $ 1,273.3 $ 3,183.8 $ 5,320.9 Allowance for finance receivables determined $ 2.3 $ 8.7 $ 44.5 $ 55.5 Dealer Customer At December 31, 2015 Wholesale Retail Retail Total Recorded investment for impaired finance $ 23.6 $ 23.6 Allowance for impaired finance receivables $ 3.3 $ 3.3 Recorded investment for finance receivables $ 967.1 $ 1,398.6 $ 3,071.2 $ 5,436.9 Allowance for finance receivables $ 2.7 $ 9.2 $ 43.0 $ 54.9 The recorded investment for finance receivables that are on non-accrual status is as follows: September 30 December 31 Fleet $ 22.6 $ 21.7 Owner/operator 1.7 1.9 $ 24.3 $ 23.6 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 September 30, 2016 and December 31, 2015 was not significantly different than the unpaid principal balance. Dealer Customer Retail At September 30, 2016 Wholesale Retail Fleet Owner/ Total Impaired loans with a specific reserve $ 6.9 $ 1.6 $ 8.5 Associated allowance (1.1 ) (.4 ) (1.5 ) Net carrying amount of impaired loans with a specific reserve 5.8 1.2 7.0 Impaired loans with no specific reserve 9.9 .1 10.0 Net carrying amount of impaired loans $ 15.7 $ 1.3 $ 17.0 Average recorded investment for impaired loans* $ 17.1 $ 1.7 $ 18.8 * Represents the average during the 12 months ended September 30, 2016 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* $ 19.4 $ 1.5 $ 20.9 * Represents the average during the 12 months ended September 30, 2015 During the period the loans above were considered impaired, interest income recognized on a cash basis was as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Fleet $ .3 $ .3 $ .7 $ .7 Owner/operator .2 .2 $ .3 $ .3 $ .9 $ .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 balance representing over 10% of the total portfolio assets as of September 30, 2016 or December 31, 2015. The Company retains as collateral a security interest in the related equipment. At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss. The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high-risk. Watch accounts are not impaired. At-risk accounts are accounts that are impaired, including TDRs, accounts over 90 days past due and other accounts on non-accrual status. The tables below summarize the Company’s finance receivables by credit quality indicator and portfolio class. Dealer Customer Retail At September 30, 2016 Wholesale Retail Fleet Owner/ Total Performing $ 859.8 $ 1,273.3 $ 2,758.7 $ 416.8 $ 5,308.6 Watch 4.0 8.0 .3 12.3 At-risk 22.6 1.7 24.3 $ 863.8 $ 1,273.3 $ 2,789.3 $ 418.8 $ 5,345.2 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 The tables below summarize the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes. Dealer Customer Retail At September 30, 2016 Wholesale Retail Fleet Owner/ Total Current and up to 30 days past due $ 863.8 $ 1,273.3 $ 2,781.4 $ 417.7 $ 5,336.2 31 – 60 days past due 2.5 .4 2.9 Greater than 60 days past due 5.4 .7 6.1 $ 863.8 $ 1,273.3 $ 2,789.3 $ 418.8 $ 5,345.2 Dealer Customer Retail At December 31, 2015 Wholesale Retail Fleet Owner/ 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 Troubled Debt Restructurings The balance of TDRs was $17.0 at September 30, 2016 and $15.9 at December 31, 2015. At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the periods by portfolio class are as follows: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Recorded Investment Recorded Investment Pre-Modification Post-Modification Pre-Modification Post-Modification Fleet $ 8.0 $ 8.0 $ 14.8 $ 14.8 Owner/operator $ 8.0 $ 8.0 $ 14.8 $ 14.8 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Recorded Investment Recorded Investment Pre-Modification Post-Modification Pre-Modification Post-Modification Fleet Owner/operator $ .2 $ .2 $ .4 $ .4 $ .2 $ .2 $ .4 $ .4 The effect on the allowance for credit losses from such modifications was not significant at September 30, 2016 and 2015. 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) and charged off during the periods by portfolio class are as follows: Nine Months Ended September 30 2016 2015 Fleet $ .2 Owner/operator $ .2 During the nine months ended September 30, 2016 and 2015, there were no significant TDRs that subsequently defaulted and were not charged-off. Repossessions When the Company determines that a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating lease. The Company records the vehicles as used truck inventory included in Other assets on the Balance Sheets. The balance of repossessed units at September 30, 2016 and December 31, 2015 was $21.3 and $7.2, respectively. Proceeds from sales of repossessed assets were $13.0 and $9.7 for the nine months ended September 30, 2016 and 2015, respectively. These amounts are included in Proceeds from disposal of equipment on the Statements of Cash Flows. Write-downs of repossessed equipment on operating leases are recorded as impairments and included in Depreciation and other rental expenses on the Statements of Comprehensive Income and Retained Earnings. |
Transactions with PACCAR and Af
| Transactions with PACCAR and Affiliates | 9 Months Ended |
| Sep. 30, 2016 | |
| Related Party Transactions [Abstract] | |
| Transactions with PACCAR and Affiliates | NOTE C – Transactions with PACCAR and Affiliates The Company and PACCAR are parties to a Support Agreement that obligates PACCAR to provide, when required, financial assistance to the Company to ensure that the Company maintains a ratio of earnings to fixed charges (as defined in the Support Agreement) of at least 1.25 to 1 for any fiscal year. The required ratio for the nine months ended September 30, 2016 and full year 2015 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 2016 and 2015 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 aggregate loans to the foreign affiliates in excess of the equivalent of $500.0 U.S. dollars, unless the amount in excess of such limit is guaranteed by PACCAR. The Company periodically reviews the funding alternatives for these affiliates, and these limits may be revised in the future. Amounts outstanding at September 30, 2016 and December 31, 2015, including those with foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada and Australia are summarized below: September 30 December 31 Due from PACCAR and affiliates Loans due from PACCAR $ 708.0 $ 723.5 Loans due from foreign finance affiliates 439.0 223.0 Direct financing leases due from affiliate .5 .5 Tax-related receivable due from PACCAR 1.0 1.5 Receivables 90.0 84.7 $ 1,238.5 $ 1,033.2 Due to PACCAR and affiliates Payables 16.9 $ 14.9 $ 16.9 $ 14.9 The Company is included in the consolidated federal income tax return of PACCAR. The tax-related receivable due from PACCAR represents the related tax benefit to be settled with PACCAR. The Company provides direct financing leases to dealer locations operated by an affiliate of PACCAR. PACCAR charges the Company for certain administrative services it provides. These costs were charged to the Company based upon the Company’s specific use of the services and PACCAR’s cost. The Company’s principal office is located in the corporate headquarters building of PACCAR (owned by PACCAR). The Company also leases office space from another facility owned by PACCAR and four facilities leased by PACCAR. The Company’s employees and PACCAR employees are covered by a defined benefit pension plan sponsored by PACCAR. The assets and liabilities of the plan are reflected on the balance sheets of PACCAR. PACCAR contributes to the plan and allocates the expenses to the Company based principally on the number of eligible plan participants. Expenses for the defined benefit pension plan are included in Selling, general and administrative expenses. The Company’s employees and PACCAR employees are also covered by a defined contribution plan sponsored by PACCAR. Expenses incurred by the Company for the defined contribution plan benefits are based on the actual contribution made on behalf of the participating employees and are included in Selling, general and administrative expenses. |
Stockholder's Equity
| Stockholder's Equity | 9 Months Ended |
| Sep. 30, 2016 | |
| Equity [Abstract] | |
| Stockholder's Equity | NOTE D – Stockholder’s Equity Preferred Stock The Company’s Articles of Incorporation provide that the 6% noncumulative, nonvoting preferred stock (100% owned by PACCAR) is redeemable only at the option of the Company’s Board of Directors. Comprehensive Income The components of comprehensive income are as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Net income $ 21.6 $ 28.3 $ 66.9 $ 85.1 Other comprehensive income (loss) Derivative contracts increase (decrease) 1.7 (2.3 ) (1.4 ) (3.2 ) Total comprehensive income $ 23.3 $ 26.0 $ 65.5 $ 81.9 Accumulated Other Comprehensive Loss Accumulated other comprehensive loss (AOCL) of $2.8 and $1.4 at September 30, 2016 and December 31, 2015, respectively, is comprised of the unrealized net loss on derivative contracts, net of taxes. Changes in and reclassifications out of AOCL during the periods are as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Balance at beginning of period $ (4.5 ) $ (2.1 ) $ (1.4 ) $ (1.2 ) Amounts recorded in AOCL Unrealized gain (loss) on derivative contracts 2.0 (5.6 ) (5.1 ) (10.9 ) Income tax effect (.8 ) 2.1 1.9 4.2 Amounts reclassified out of AOCL Interest and other borrowing costs .8 1.9 2.9 5.7 Income tax effect (.3 ) (.7 ) (1.1 ) (2.2 ) Net other comprehensive income (loss) 1.7 (2.3 ) (1.4 ) (3.2 ) Balance at end of period $ (2.8 ) $ (4.4 ) $ (2.8 ) $ (4.4 ) |
Fair Value Measurements
| Fair Value Measurements | 9 Months Ended |
| Sep. 30, 2016 | |
| Fair Value Disclosures [Abstract] | |
| Fair Value Measurements | NOTE E – Fair Value Measurements Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below: Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment. Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. There were no transfers of assets or liabilities between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2016. 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 September 30 December 31 Assets: Impaired loans, net of specific reserves (2016 - nil and 2015 - $2.3) $ 9.0 Used trucks held for sale $ 90.7 16.9 Derivative contracts 2.6 1.5 Liabilities: Derivative contracts $ 5.0 $ 3.3 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: September 30 2016 December 31 2015 Carrying Fair Carrying Fair Value Assets: Due from PACCAR $ 603.0 $ 608.5 $ 608.5 $ 611.4 Due from foreign finance affiliates 218.0 222.9 96.0 96.8 Fixed rate loans 2,816.1 2,857.7 2,790.3 2,842.9 Liabilities: Fixed rate debt $ 4,199.8 $ 4,234.9 $ 3,699.7 $ 3,716.1 |
Derivative Financial Instrument
| Derivative Financial Instruments | 9 Months Ended |
| Sep. 30, 2016 | |
| 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. The notional amount is used to measure the volume of these contracts and does not represent exposure to credit loss. At September 30, 2016, the notional amount of these contracts totaled $1,201.0 with amounts expiring over the next four years. Notional maturities for all interest-rate contracts are $45.0 for the remainder of 2016, $150.0 for 2017, $460.0 for 2018, $446.0 for 2019, $40.0 for 2020 and $60.0 for 2021. The following table presents the balance sheet classification, fair value and gross and net amounts of derivative financial instruments: September 30 2016 December 31 Interest-rate contracts: Assets Liabilities Assets Liabilities Other assets $ 2.6 $ 1.5 Accounts payable, accrued expenses and other $ 5.0 $ 3.3 Gross amounts recognized in Balance Sheets 2.6 5.0 1.5 3.3 Less amounts not offset in financial instruments: (1.0 ) (1.0 ) (.8 ) (.8 ) Pro-forma net amount $ 1.6 $ 4.0 $ .7 $ 2.5 All of the Company’s interest-rate contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. The Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same 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 $2.6 at September 30, 2016. 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 and were immaterial for the nine months ended September 30, 2016 and 2015. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. 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. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is four 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 September 30, 2016 that is estimated to be reclassified to interest expense in the following 12 months if interest rates remain unchanged is approximately $1.4, 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 expense or (income) recognized in earnings related to fair value hedges was included in Interest and other borrowing costs as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Interest-rate swaps $ 3.7 $ (4.2 ) $ (1.3 ) $ (5.3 ) Term notes $ (3.8 ) $ 4.1 $ .7 $ 5.1 |
Income Taxes
| Income Taxes | 9 Months Ended |
| Sep. 30, 2016 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE G – Income Taxes The effective income tax rate for the third quarter and first nine months of 2016 was 31.2% and 35.4%, respectively, compared to 39.7% and 38.2% for the third quarter and first nine months of 2015, reflecting lower deferred state tax expense in the third quarter and first nine months of 2016 compared to 2015 as a result of a lower state tax rate applied to the deferred tax liabilities. The Company is included in the consolidated federal income tax return of PACCAR. Federal income taxes for the Company are determined on a separate return basis. State income taxes, where the Company files combined tax returns with PACCAR, are determined on a blended statutory rate, which is substantially the same as the rate computed on a separate return basis. |
Accounting Policies (Policies)
| Accounting Policies (Policies) | 9 Months Ended |
| Sep. 30, 2016 | |
| Receivables [Abstract] | |
| Finance Receivables Allowance for Credit Losses | Allowance for Credit Losses The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases in the normal course of its operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. 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 three months in 2016 and four months in 2015, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2016 or December 31, 2015. 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 (generally upon repossession of the collateral). Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records partial charge-offs. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. |
Basis of Presentation (Tables)
| Basis of Presentation (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| FASB Issued Standards | The Company adopted the following standards effective January 1, 2016, none of which had a material impact on the Company’s financial statements. STANDARD DESCRIPTION 2015-03 Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. 2015-15 Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measure of Debt Issuance Costs Associated with Line-of-Credit Arrangements. |
Finance and Other Receivables (
| Finance and Other Receivables (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| Receivables [Abstract] | |
| Finance and Other Receivables | The Company’s finance and other receivables include the following: September 30 December 31 Retail loans $ 2,964.2 $ 2,898.4 Retail direct financing leases 1,637.0 1,717.3 Dealer wholesale financing 863.8 967.1 Dealer master notes 28.7 43.0 Operating lease receivables and other 69.1 62.1 Unearned interest on finance leases (148.5 ) (165.3 ) 5,414.3 5,522.6 Less allowance for credit losses: Loans and leases (55.2 ) (55.5 ) Dealer wholesale financing (2.3 ) (2.7 ) Operating lease receivables and other (1.2 ) (1.1 ) $ 5,355.6 $ 5,463.3 |
| Allowance for Credit Losses | The allowance for credit losses is summarized as follows: 2016 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 2.7 $ 9.2 $ 46.3 $ 1.1 $ 59.3 (Benefit) provision for losses (.4 ) (.5 ) 9.2 .8 9.1 Charge-offs (9.9 ) (.7 ) (10.6 ) Recoveries .9 .9 Balance at September 30 $ 2.3 $ 8.7 $ 46.5 $ 1.2 $ 58.7 2015 Dealer Customer Wholesale Retail Retail Other* Total Balance at January 1 $ 2.8 $ 10.4 $ 42.0 $ .8 $ 56.0 Provision (benefit) for losses .6 (.8 ) 4.2 .2 4.2 Charge-offs (3.2 ) (.2 ) (3.4 ) Recoveries 1.3 .1 1.4 Balance at September 30 $ 3.4 $ 9.6 $ 44.3 $ .9 $ 58.2 * 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 At September 30, 2016 Wholesale Retail Retail Total Recorded investment for impaired finance $ 24.3 $ 24.3 Allowance for impaired finance receivables $ 2.0 $ 2.0 Recorded investment for finance receivables $ 863.8 $ 1,273.3 $ 3,183.8 $ 5,320.9 Allowance for finance receivables determined $ 2.3 $ 8.7 $ 44.5 $ 55.5 Dealer Customer At December 31, 2015 Wholesale Retail Retail Total Recorded investment for impaired finance $ 23.6 $ 23.6 Allowance for impaired finance receivables $ 3.3 $ 3.3 Recorded investment for finance receivables $ 967.1 $ 1,398.6 $ 3,071.2 $ 5,436.9 Allowance for finance receivables $ 2.7 $ 9.2 $ 43.0 $ 54.9 |
| Recorded Investment for Finance Receivables that are on Non-accrual Status | The recorded investment for finance receivables that are on non-accrual status is as follows: September 30 December 31 Fleet $ 22.6 $ 21.7 Owner/operator 1.7 1.9 $ 24.3 $ 23.6 |
| 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 September 30, 2016 and December 31, 2015 was not significantly different than the unpaid principal balance. Dealer Customer Retail At September 30, 2016 Wholesale Retail Fleet Owner/ Total Impaired loans with a specific reserve $ 6.9 $ 1.6 $ 8.5 Associated allowance (1.1 ) (.4 ) (1.5 ) Net carrying amount of impaired loans with a specific reserve 5.8 1.2 7.0 Impaired loans with no specific reserve 9.9 .1 10.0 Net carrying amount of impaired loans $ 15.7 $ 1.3 $ 17.0 Average recorded investment for impaired loans* $ 17.1 $ 1.7 $ 18.8 * Represents the average during the 12 months ended September 30, 2016 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* $ 19.4 $ 1.5 $ 20.9 * Represents the average during the 12 months ended September 30, 2015 |
| 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: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Fleet $ .3 $ .3 $ .7 $ .7 Owner/operator .2 .2 $ .3 $ .3 $ .9 $ .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 September 30, 2016 Wholesale Retail Fleet Owner/ Total Performing $ 859.8 $ 1,273.3 $ 2,758.7 $ 416.8 $ 5,308.6 Watch 4.0 8.0 .3 12.3 At-risk 22.6 1.7 24.3 $ 863.8 $ 1,273.3 $ 2,789.3 $ 418.8 $ 5,345.2 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 |
| Financing Receivables by Aging Category | The tables below summarize the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes. Dealer Customer Retail At September 30, 2016 Wholesale Retail Fleet Owner/ Total Current and up to 30 days past due $ 863.8 $ 1,273.3 $ 2,781.4 $ 417.7 $ 5,336.2 31 – 60 days past due 2.5 .4 2.9 Greater than 60 days past due 5.4 .7 6.1 $ 863.8 $ 1,273.3 $ 2,789.3 $ 418.8 $ 5,345.2 Dealer Customer Retail At December 31, 2015 Wholesale Retail Fleet Owner/ 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 |
| Pre-Modification and Post-Modification Recorded Investment Balances by Portfolio Class | At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the periods by portfolio class are as follows: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 Recorded Investment Recorded Investment Pre-Modification Post-Modification Pre-Modification Post-Modification Fleet $ 8.0 $ 8.0 $ 14.8 $ 14.8 Owner/operator $ 8.0 $ 8.0 $ 14.8 $ 14.8 Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Recorded Investment Recorded Investment Pre-Modification Post-Modification Pre-Modification Post-Modification Fleet Owner/operator $ .2 $ .2 $ .4 $ .4 $ .2 $ .2 $ .4 $ .4 |
| TDRs Modified During Previous Twelve Months that Subsequently Defaulted and Charged off by Portfolio Class | TDRs during the previous twelve months that subsequently defaulted (i.e. became more than 30 days past due) and charged off during the periods by portfolio class are as follows: Nine Months Ended September 30 2016 2015 Fleet $ .2 Owner/operator $ .2 |
Transactions with PACCAR and 16
| Transactions with PACCAR and Affiliates (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| Related Party Transactions [Abstract] | |
| Amounts Outstanding Including Foreign Finance Affiliates | Amounts outstanding at September 30, 2016 and December 31, 2015, including those with foreign finance affiliates operating in the United Kingdom, the Netherlands, Mexico, Canada and Australia are summarized below: September 30 December 31 Due from PACCAR and affiliates Loans due from PACCAR $ 708.0 $ 723.5 Loans due from foreign finance affiliates 439.0 223.0 Direct financing leases due from affiliate .5 .5 Tax-related receivable due from PACCAR 1.0 1.5 Receivables 90.0 84.7 $ 1,238.5 $ 1,033.2 Due to PACCAR and affiliates Payables 16.9 $ 14.9 $ 16.9 $ 14.9 |
Stockholder's Equity (Tables)
| Stockholder's Equity (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| Equity [Abstract] | |
| Components of Comprehensive Income | The components of comprehensive income are as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Net income $ 21.6 $ 28.3 $ 66.9 $ 85.1 Other comprehensive income (loss) Derivative contracts increase (decrease) 1.7 (2.3 ) (1.4 ) (3.2 ) Total comprehensive income $ 23.3 $ 26.0 $ 65.5 $ 81.9 |
| Changes in and Reclassifications out of Accumulated Other Comprehensive Income | Changes in and reclassifications out of AOCL during the periods are as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Balance at beginning of period $ (4.5 ) $ (2.1 ) $ (1.4 ) $ (1.2 ) Amounts recorded in AOCL Unrealized gain (loss) on derivative contracts 2.0 (5.6 ) (5.1 ) (10.9 ) Income tax effect (.8 ) 2.1 1.9 4.2 Amounts reclassified out of AOCL Interest and other borrowing costs .8 1.9 2.9 5.7 Income tax effect (.3 ) (.7 ) (1.1 ) (2.2 ) Net other comprehensive income (loss) 1.7 (2.3 ) (1.4 ) (3.2 ) Balance at end of period $ (2.8 ) $ (4.4 ) $ (2.8 ) $ (4.4 ) |
Fair Value Measurements (Tables
| Fair Value Measurements (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| 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 September 30 December 31 Assets: Impaired loans, net of specific reserves (2016 - nil and 2015 - $2.3) $ 9.0 Used trucks held for sale $ 90.7 16.9 Derivative contracts 2.6 1.5 Liabilities: Derivative contracts $ 5.0 $ 3.3 |
| Carrying Amount and Fair Value Fixed-Rate Loans and Fixed-Rate Debt | The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows: September 30 2016 December 31 2015 Carrying Fair Carrying Fair Value Assets: Due from PACCAR $ 603.0 $ 608.5 $ 608.5 $ 611.4 Due from foreign finance affiliates 218.0 222.9 96.0 96.8 Fixed rate loans 2,816.1 2,857.7 2,790.3 2,842.9 Liabilities: Fixed rate debt $ 4,199.8 $ 4,234.9 $ 3,699.7 $ 3,716.1 |
Derivative Financial Instrume19
| Derivative Financial Instruments (Tables) | 9 Months Ended |
| Sep. 30, 2016 | |
| Balance Sheet Classification, Fair Value and Gross and Net Amounts of Derivative Financial Instruments | The following table presents the balance sheet classification, fair value and gross and net amounts of derivative financial instruments: September 30 2016 December 31 Interest-rate contracts: Assets Liabilities Assets Liabilities Other assets $ 2.6 $ 1.5 Accounts payable, accrued expenses and other $ 5.0 $ 3.3 Gross amounts recognized in Balance Sheets 2.6 5.0 1.5 3.3 Less amounts not offset in financial instruments: (1.0 ) (1.0 ) (.8 ) (.8 ) Pro-forma net amount $ 1.6 $ 4.0 $ .7 $ 2.5 |
| Fair Value Hedging | |
| Gains/Losses of Derivative Financial Instruments | Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with the changes in fair value of the hedged item attributable to the risk being hedged. The expense or (income) recognized in earnings related to fair value hedges was included in Interest and other borrowing costs as follows: Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Interest-rate swaps $ 3.7 $ (4.2 ) $ (1.3 ) $ (5.3 ) Term notes $ (3.8 ) $ 4.1 $ .7 $ 5.1 |
FASB Issued Standards (Detail)
| FASB Issued Standards (Detail) | 9 Months Ended |
| Sep. 30, 2016 | |
| 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. |
| 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. |
Finance and Other Receivables21
| Finance and Other Receivables (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
| Retail loans | $ 2,964.2 | $ 2,898.4 | ||||
| Retail direct financing leases | 1,637 | 1,717.3 | ||||
| Dealer wholesale financing | 863.8 | 967.1 | ||||
| Dealer master notes | 28.7 | 43 | ||||
| Operating lease receivables and other | 69.1 | 62.1 | ||||
| Unearned interest on finance leases | (148.5) | (165.3) | ||||
| Total portfolio | 5,414.3 | 5,522.6 | ||||
| Allowance for credit losses | (58.7) | (59.3) | [1] | $ (58.2) | $ (56) | |
| Total portfolio, net of allowance for credit losses | 5,355.6 | 5,463.3 | [1] | |||
| Loans and Leases | ||||||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
| Allowance for credit losses | (55.2) | (55.5) | ||||
| Dealer | Wholesale | ||||||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
| Allowance for credit losses | (2.3) | (2.7) | (3.4) | (2.8) | ||
| Other | ||||||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
| Allowance for credit losses | [2] | $ (1.2) | $ (1.1) | $ (0.9) | $ (0.8) | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | |||||
| [2] | Operating lease and other trade receivables | |||||
Finance and Other Receivables -
| Finance and Other Receivables - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |
| Sep. 30, 2016USD ($)Segment | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
| Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
| Receivables more than 90 days past due still accruing | $ 0 | $ 0 | |
| Number of portfolio segments | Segment | 2 | ||
| Troubled debt restructuring | $ 17,000,000 | 15,900,000 | |
| Repossessed inventory | 21,300,000 | $ 7,200,000 | |
| Proceeds from sales of repossessed assets | $ 13,000,000 | $ 9,700,000 | |
| Extended Maturity | |||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
| Modifications extended contractual terms | 3 months | 4 months | |
| Minimum | Loans Receivable | |||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
| Contractual term of regular payment of principal and interest | 36 months | ||
| Maximum | Loans Receivable | |||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
| Contractual term of regular payment of principal and interest | 60 months | ||
| Maximum | Financing Receivable | Credit Concentration Risk | |||
| 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 | 3 Months Ended | 9 Months Ended | ||||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
| Beginning Balance | $ 59.3 | [1] | $ 56 | |||
| (Benefit) provision for losses | $ 3.5 | $ 1 | 9.1 | 4.2 | ||
| Charge-offs | (10.6) | (3.4) | ||||
| Recoveries | 0.9 | 1.4 | ||||
| Ending Balance | 58.7 | 58.2 | 58.7 | 58.2 | ||
| Dealer | Wholesale | ||||||
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
| Beginning Balance | 2.7 | 2.8 | ||||
| (Benefit) provision for losses | (0.4) | 0.6 | ||||
| Ending Balance | 2.3 | 3.4 | 2.3 | 3.4 | ||
| Dealer | Retail | ||||||
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
| Beginning Balance | 9.2 | 10.4 | ||||
| (Benefit) provision for losses | (0.5) | (0.8) | ||||
| Ending Balance | 8.7 | 9.6 | 8.7 | 9.6 | ||
| Customer Retail | ||||||
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
| Beginning Balance | 46.3 | 42 | ||||
| (Benefit) provision for losses | 9.2 | 4.2 | ||||
| Charge-offs | (9.9) | (3.2) | ||||
| Recoveries | 0.9 | 1.3 | ||||
| Ending Balance | 46.5 | 44.3 | 46.5 | 44.3 | ||
| Other | ||||||
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
| Beginning Balance | [2] | 1.1 | 0.8 | |||
| (Benefit) provision for losses | [2] | 0.8 | 0.2 | |||
| Charge-offs | [2] | (0.7) | (0.2) | |||
| Recoveries | [2] | 0.1 | ||||
| Ending Balance | [2] | $ 1.2 | $ 0.9 | $ 1.2 | $ 0.9 | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | |||||
| [2] | 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 | Sep. 30, 2016 | Dec. 31, 2015 |
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||
| Recorded investment for impaired finance receivables evaluated individually | $ 24.3 | $ 23.6 |
| Allowance for impaired finance receivables determined individually | 2 | 3.3 |
| Recorded investment for finance receivables evaluated collectively | 5,320.9 | 5,436.9 |
| Allowance for finance receivables determined collectively | 55.5 | 54.9 |
| Dealer | Wholesale | ||
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||
| Recorded investment for finance receivables evaluated collectively | 863.8 | 967.1 |
| Allowance for finance receivables determined collectively | 2.3 | 2.7 |
| Dealer | Retail | ||
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||
| Recorded investment for finance receivables evaluated collectively | 1,273.3 | 1,398.6 |
| Allowance for finance receivables determined collectively | 8.7 | 9.2 |
| Customer Retail | ||
| Financing Receivable, Allowance for Credit Losses [Line Items] | ||
| Recorded investment for impaired finance receivables evaluated individually | 24.3 | 23.6 |
| Allowance for impaired finance receivables determined individually | 2 | 3.3 |
| Recorded investment for finance receivables evaluated collectively | 3,183.8 | 3,071.2 |
| Allowance for finance receivables determined collectively | $ 44.5 | $ 43 |
Recorded Investment for Finance
| Recorded Investment for Finance Receivables that are on Non-accrual Status (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Recorded investment of finance receivables that are on non-accrual status | $ 24.3 | $ 23.6 |
| Customer Retail | Fleet | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Recorded investment of finance receivables that are on non-accrual status | 22.6 | 21.7 |
| Customer Retail | Owner/Operator | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Recorded investment of finance receivables that are on non-accrual status | $ 1.7 | $ 1.9 |
Impaired Loans and Specific Res
| Impaired Loans and Specific Reserve (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
| Sep. 30, 2016 | Dec. 31, 2015 | |||
| Financing Receivable, Impaired [Line Items] | ||||
| Impaired loans with a specific reserve | $ 8.5 | $ 14.7 | ||
| Associated allowance | (1.5) | (3.1) | ||
| Net carrying amount of impaired loans with a specific reserve | 7 | 11.6 | ||
| Impaired loans with no specific reserve | 10 | 6.6 | ||
| Net carrying amount of impaired loans | 17 | 18.2 | ||
| Average recorded investment for impaired loans | 18.8 | [1] | 20.9 | [2] |
| Customer Retail | Fleet | ||||
| Financing Receivable, Impaired [Line Items] | ||||
| Impaired loans with a specific reserve | 6.9 | 13.1 | ||
| Associated allowance | (1.1) | (2.8) | ||
| Net carrying amount of impaired loans with a specific reserve | 5.8 | 10.3 | ||
| Impaired loans with no specific reserve | 9.9 | 6.4 | ||
| Net carrying amount of impaired loans | 15.7 | 16.7 | ||
| Average recorded investment for impaired loans | 17.1 | [1] | 19.4 | [2] |
| Customer Retail | Owner/Operator | ||||
| Financing Receivable, Impaired [Line Items] | ||||
| Impaired loans with a specific reserve | 1.6 | 1.6 | ||
| Associated allowance | (0.4) | (0.3) | ||
| Net carrying amount of impaired loans with a specific reserve | 1.2 | 1.3 | ||
| Impaired loans with no specific reserve | 0.1 | 0.2 | ||
| Net carrying amount of impaired loans | 1.3 | 1.5 | ||
| Average recorded investment for impaired loans | $ 1.7 | [1] | $ 1.5 | [2] |
| [1] | Represents the average during the 12 months ended September 30, 2016 | |||
| [2] | Represents the average during the 12 months ended September 30, 2015 | |||
Interest Income Recognized (Det
| Interest Income Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Interest income recognized: | ||||
| Interest income recognized on a cash basis | $ 0.3 | $ 0.3 | $ 0.9 | $ 0.9 |
| Customer Retail | Fleet | ||||
| Interest income recognized: | ||||
| Interest income recognized on a cash basis | $ 0.3 | $ 0.3 | 0.7 | 0.7 |
| Customer Retail | Owner/Operator | ||||
| Interest income recognized: | ||||
| Interest income recognized on a cash basis | $ 0.2 | $ 0.2 | ||
Financing Receivables by Credit
| Financing Receivables by Credit Quality Indicator (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | $ 5,345.2 | $ 5,460.5 |
| Performing | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 5,308.6 | 5,410.3 |
| Watch | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 12.3 | 26.6 |
| At-risk | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 24.3 | 23.6 |
| Dealer | Wholesale | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 863.8 | 967.1 |
| Dealer | Wholesale | Performing | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 859.8 | 949.1 |
| Dealer | Wholesale | Watch | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 4 | 18 |
| Dealer | Retail | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 1,273.3 | 1,398.6 |
| Dealer | Retail | Performing | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 1,273.3 | 1,398.6 |
| Customer Retail | Fleet | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 2,789.3 | 2,668.7 |
| Customer Retail | Fleet | Performing | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 2,758.7 | 2,638.8 |
| Customer Retail | Fleet | Watch | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 8 | 8.2 |
| Customer Retail | Fleet | At-risk | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 22.6 | 21.7 |
| Customer Retail | Owner/Operator | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 418.8 | 426.1 |
| Customer Retail | Owner/Operator | Performing | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 416.8 | 423.8 |
| Customer Retail | Owner/Operator | Watch | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | 0.3 | 0.4 |
| Customer Retail | Owner/Operator | At-risk | ||
| Financing Receivable, Recorded Investment [Line Items] | ||
| Financing Receivables | $ 1.7 | $ 1.9 |
Financing Receivables by Aging
| Financing Receivables by Aging Category (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, current and up to 30 days past due | $ 5,336.2 | $ 5,446.6 |
| Financing Receivables | 5,345.2 | 5,460.5 |
| 31 - 60 days past due | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, past due | 2.9 | 4.5 |
| Greater than 60 days past due | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, past due | 6.1 | 9.4 |
| Dealer | Wholesale | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, current and up to 30 days past due | 863.8 | 967.1 |
| Financing Receivables | 863.8 | 967.1 |
| Dealer | Retail | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, current and up to 30 days past due | 1,273.3 | 1,398.6 |
| Financing Receivables | 1,273.3 | 1,398.6 |
| Customer Retail | Fleet | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, current and up to 30 days past due | 2,781.4 | 2,656 |
| Financing Receivables | 2,789.3 | 2,668.7 |
| Customer Retail | Fleet | 31 - 60 days past due | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, past due | 2.5 | 4 |
| Customer Retail | Fleet | Greater than 60 days past due | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, past due | 5.4 | 8.7 |
| Customer Retail | Owner/Operator | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, current and up to 30 days past due | 417.7 | 424.9 |
| Financing Receivables | 418.8 | 426.1 |
| Customer Retail | Owner/Operator | 31 - 60 days past due | ||
| Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
| Financing receivables, past due | 0.4 | 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 | $ 0.7 |
Pre and Post Modification Recor
| Pre and Post Modification Recorded Investment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Financing Receivable, Modifications [Line Items] | ||||
| Pre-Modification Recorded Investment | $ 8 | $ 0.2 | $ 14.8 | $ 0.4 |
| Post-Modification Recorded Investment | 8 | 0.2 | 14.8 | 0.4 |
| Customer Retail | Fleet | ||||
| Financing Receivable, Modifications [Line Items] | ||||
| Pre-Modification Recorded Investment | 8 | 14.8 | ||
| Post-Modification Recorded Investment | $ 8 | $ 14.8 | ||
| Customer Retail | Owner/Operator | ||||
| Financing Receivable, Modifications [Line Items] | ||||
| Pre-Modification Recorded Investment | 0.2 | 0.4 | ||
| Post-Modification Recorded Investment | $ 0.2 | $ 0.4 | ||
Post-Modification Recorded Inve
| Post-Modification Recorded Investment of Finance Receivables Modified as TDR Modified During Previous Twelve Months that Subsequently Defaulted and Charged off by Portfolio Class (Detail) $ in Millions | 9 Months Ended |
| Sep. 30, 2016USD ($) | |
| Financing Receivable, Modifications [Line Items] | |
| Recorded investment, subsequently defaulted | $ 0.2 |
| Customer Retail | Fleet | |
| Financing Receivable, Modifications [Line Items] | |
| Recorded investment, subsequently defaulted | $ 0.2 |
Transactions with PACCAR and 32
| Transactions with PACCAR and Affiliates - Additional Information (Detail) | Sep. 30, 2016USD ($)Facility |
| Related Party Transaction [Line Items] | |
| Required ratio of net earnings available for fixed charges to fixed charges | 125.00% |
| Number of facilities leased by company | Facility | 4 |
| 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 | Sep. 30, 2016 | Dec. 31, 2015 | |
| Due from PACCAR and affiliates | |||
| Loans due from PACCAR | $ 708 | $ 723.5 | |
| Loans due from foreign finance affiliates | 439 | 223 | |
| Direct financing leases due from affiliate | 0.5 | 0.5 | |
| Tax-related receivable due from PACCAR | 1 | 1.5 | |
| Receivables | 90 | 84.7 | |
| Total | 1,238.5 | 1,033.2 | [1] |
| Due to PACCAR and affiliates | |||
| Payables | 16.9 | 14.9 | |
| Total | $ 16.9 | $ 14.9 | [1] |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | ||
Stockholders' Equity - Addition
| Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
| Sep. 30, 2016 | Dec. 31, 2015 | [1] | |
| Equity [Abstract] | |||
| Preferred stock dividend percentage | 6.00% | ||
| Ownership percentage of PACCAR | 100.00% | ||
| Accumulated other comprehensive income (loss) | $ (2.8) | $ (1.4) | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | ||
Components of Comprehensive Inc
| Components of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Statement of Comprehensive Income [Abstract] | ||||
| Net income | $ 21.6 | $ 28.3 | $ 66.9 | $ 85.1 |
| Other comprehensive income (loss) | ||||
| Derivative contracts increase (decrease) | 1.7 | (2.3) | (1.4) | (3.2) |
| Total comprehensive income | $ 23.3 | $ 26 | $ 65.5 | $ 81.9 |
Changes in and Reclassification
| Changes in and Reclassifications out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
| Beginning balance | [1] | $ 1,176.9 | |||
| Interest and other borrowing costs | $ 21.7 | $ 17.2 | 61.7 | $ 49.3 | |
| Income tax effect | 9.8 | 18.6 | 36.7 | 52.7 | |
| Ending balance | 1,247.7 | 1,247.7 | |||
| Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
| Beginning balance | (4.5) | (2.1) | (1.4) | (1.2) | |
| Amounts recorded in AOCL related to Unrealized gain (loss) on derivative contracts, before tax | 2 | (5.6) | (5.1) | (10.9) | |
| Amounts recorded in AOCL related to unrealized loss on derivative contracts, income tax effect | (0.8) | 2.1 | 1.9 | 4.2 | |
| Net other comprehensive income (loss) | 1.7 | (2.3) | (1.4) | (3.2) | |
| Ending balance | (2.8) | (4.4) | (2.8) | (4.4) | |
| Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Amounts reclassified out of AOCL | |||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
| Interest and other borrowing costs | 0.8 | 1.9 | 2.9 | 5.7 | |
| Income tax effect | $ (0.3) | $ (0.7) | $ (1.1) | $ (2.2) | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | ||||
Assets and Liabilities Fair Val
| Assets and Liabilities Fair Value Measurements (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
| Assets: | ||
| Derivative contracts | $ 2.6 | $ 1.5 |
| Liabilities: | ||
| Derivative contracts | 5 | 3.3 |
| Fair Value, Inputs, Level 2 | Fair Value Measurements, Nonrecurring | ||
| Assets: | ||
| Impaired loans, net of specific reserves (2016 - nil and 2015 - $2.3) | 9 | |
| Used trucks held for sale | 90.7 | 16.9 |
| Fair Value, Inputs, Level 2 | Fair Value, Assets and Liabilities Measured on Recurring Basis | ||
| Assets: | ||
| Derivative contracts | 2.6 | 1.5 |
| Liabilities: | ||
| Derivative contracts | $ 5 | $ 3.3 |
Assets and Liabilities Fair V38
| Assets and Liabilities Fair Value Measurements (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Impaired loans, specific reserves | $ 1.5 | $ 3.1 |
| 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 | $ 0 | $ 2.3 |
Fair Value Measurements - Addit
| Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
| Sep. 30, 2016 | Sep. 30, 2015 | |
| Trucks Inventory | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Used truck impairments | $ 12.7 | $ 2.5 |
Carrying Amount and Fair Value
| Carrying Amount and Fair Value for Fixed-Rate Loans and Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
| Assets: | |||
| Due from PACCAR | $ 1,238.5 | $ 1,033.2 | [1] |
| Due from foreign finance affiliates | 439 | 223 | |
| Carrying Amount | |||
| Assets: | |||
| Due from PACCAR | 603 | 608.5 | |
| Due from foreign finance affiliates | 218 | 96 | |
| Fixed rate loans | 2,816.1 | 2,790.3 | |
| Liabilities: | |||
| Fixed rate debt | 4,199.8 | 3,699.7 | |
| Fair Value | |||
| Assets: | |||
| Due from PACCAR | 608.5 | 611.4 | |
| Due from foreign finance affiliates | 222.9 | 96.8 | |
| Fixed rate loans | 2,857.7 | 2,842.9 | |
| Liabilities: | |||
| Fixed rate debt | $ 4,234.9 | $ 3,716.1 | |
| [1] | The December 31, 2015 balance sheet has been derived from audited financial statements. | ||
Derivative Financial Instrume41
| Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
| Sep. 30, 2016 | Dec. 31, 2015 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
| Notional amount of interest-rate contracts | $ 1,201 | |
| Interest-rate contracts maturity period | 4 years | |
| Notional maturities for interest-rate contracts 2016 | $ 45 | |
| Notional maturities for interest-rate contracts 2017 | 150 | |
| Notional maturities for interest-rate contracts 2018 | 460 | |
| Notional maturities for interest-rate contracts 2019 | 446 | |
| Notional maturities for interest-rate contracts 2020 | 40 | |
| Notional maturities for interest-rate contracts 2021 | 60 | |
| Interest rate swap portfolio | $ 2.6 | $ 1.5 |
| Maximum length of time for which company is hedging its exposure to the variability in future cash flows | 4 years | |
| Accumulated net loss on interest rate contracts included in AOCL expected to be reclassified to interest expense in the following 12 months | $ 1.4 |
Balance Sheet Classification, F
| Balance Sheet Classification, Fair Value and Gross and Net Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
| Derivatives, Fair Value [Line Items] | ||
| Assets gross amount recognized in balance sheets | $ 2.6 | $ 1.5 |
| Less amounts not offset in financial instruments: | (1) | (0.8) |
| Pro-forma net amount | 1.6 | 0.7 |
| Liabilities gross amount recognized in balance sheets | 5 | 3.3 |
| Less amounts not offset in financial instruments: | (1) | (0.8) |
| Pro-forma net amount | 4 | 2.5 |
| Interest Rate Contract | Other Assets | ||
| Derivatives, Fair Value [Line Items] | ||
| Assets gross amount recognized in balance sheets | 2.6 | 1.5 |
| Interest Rate Contract | Accounts Payable, Accrued Expenses and Other | ||
| Derivatives, Fair Value [Line Items] | ||
| Liabilities gross amount recognized in balance sheets | $ 5 | $ 3.3 |
(Income) or Expense Recognized
| (Income) or Expense Recognized in Earnings Related to Fair Value Hedges (Detail) - Financial Services - Interest and other borrowing costs - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Derivative [Line Items] | ||||
| Interest-rate swaps | $ 3.7 | $ (4.2) | $ (1.3) | $ (5.3) |
| Term notes | $ (3.8) | $ 4.1 | $ 0.7 | $ 5.1 |
Income Taxes - Additional Infor
| Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
| Income Tax Disclosure [Abstract] | ||||
| Effective income tax rate | 31.20% | 39.70% | 35.40% | 38.20% |