Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'PCAR | ' |
Entity Registrant Name | 'PACCAR INC | ' |
Entity Central Index Key | '0000075362 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 354,104,279 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Investment income | $5.70 | $7.30 | $17 | $21.80 |
Net sales and revenues | 4,928.40 | 4,300.10 | 13,877.90 | 12,524.90 |
Provision for losses on receivables | ' | ' | 12.5 | 15.4 |
Income Before Income Taxes | 552.4 | 440 | 1,439.90 | 1,210.10 |
Income taxes | 181 | 130.6 | 475.4 | 373 |
Net Income | 371.4 | 309.4 | 964.5 | 837.1 |
Net Income Per Share: | ' | ' | ' | ' |
Basic | $1.05 | $0.87 | $2.72 | $2.36 |
Diluted | $1.04 | $0.87 | $2.71 | $2.36 |
Weighted Average Number of Common Shares Outstanding: | ' | ' | ' | ' |
Basic | 355.2 | 354.4 | 355.1 | 354.1 |
Diluted | 356.3 | 355.4 | 356.2 | 355 |
Dividends declared per share | $0.22 | $0.20 | $0.64 | $0.60 |
Comprehensive Income | 109.3 | 428.2 | 757.2 | 805.5 |
Truck, Parts and Other | ' | ' | ' | ' |
Net sales and revenues | 4,622.50 | 4,006.60 | 12,975.70 | 11,649.50 |
Cost of sales and revenues | 4,006.30 | 3,491.10 | 11,321.20 | 10,175 |
Research and development | 50.5 | 56.6 | 153.1 | 190.5 |
Selling, general and administrative | 112.4 | 111.1 | 348.6 | 341.1 |
Interest and other expense, net | 3.5 | 3.3 | 4 | 4.4 |
Costs and Expenses, Total | 4,172.70 | 3,662.10 | 11,826.90 | 10,711 |
Income Before Income Taxes | 449.8 | 344.5 | 1,148.80 | 938.5 |
Financial Services | ' | ' | ' | ' |
Interest and fees | 118 | 116.4 | 345.6 | 345.2 |
Operating lease, rental and other revenues | 187.9 | 177.1 | 556.6 | 530.2 |
Revenues | 305.9 | 293.5 | 902.2 | 875.4 |
Interest and other borrowing expenses | 32.6 | 37.9 | 102.9 | 116.2 |
Depreciation and other expense | 147.3 | 140.2 | 440 | 423.2 |
Selling, general and administrative | 24.3 | 23.6 | 72.7 | 70.8 |
Provision for losses on receivables | 4.8 | 3.6 | 12.5 | 15.4 |
Costs and Expenses, Total | 209 | 205.3 | 628.1 | 625.6 |
Income Before Income Taxes | $96.90 | $88.20 | $274.10 | $249.80 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and cash equivalents | $1,648.40 | $1,750.10 | |
Total Assets | 21,026.10 | 20,725.50 | [1] |
STOCKHOLDERS' EQUITY: | ' | ' | |
Preferred stock, no par value: Authorized 1.0 million shares, none issued | ' | ' | [1] |
Common stock, $1 par value: Authorized 1.2 billion shares, issued 354.8 and 354.3 million shares | 354.8 | 354.3 | [1] |
Additional paid-in capital | 138.2 | 106.2 | [1] |
Treasury stock, at cost - .6 million shares and nil shares | -34.1 | ' | |
Retained earnings | 6,902.40 | 6,165.10 | [1] |
Accumulated other comprehensive (loss) income | -198.6 | 8.7 | [1] |
Total Stockholders' Equity | 7,162.70 | 6,634.30 | [1] |
Liabilities and Equity, Total | 21,026.10 | 20,725.50 | [1] |
Truck, Parts and Other | ' | ' | |
ASSETS | ' | ' | |
Cash and cash equivalents | 1,540 | 1,657.70 | [1] |
Trade and other receivables, net | 1,313.40 | 1,019.60 | [1] |
Marketable debt securities | 1,320.60 | 1,267.50 | [1] |
Inventories, net | 988.1 | 813.6 | [1] |
Other current assets | 308.3 | 308.1 | [1] |
Total Truck, Parts and Other Current Assets | 5,470.40 | 5,066.50 | [1] |
Equipment on operating leases, net | 937.8 | 1,038.30 | [1] |
Property, plant and equipment, net | 2,383.60 | 2,513.30 | [1] |
Other noncurrent assets, net | 466.6 | 477.3 | [1] |
Total Assets | 9,258.40 | 9,095.40 | [1] |
Current Liabilities | ' | ' | |
Accounts payable, accrued expenses and other | 2,598.10 | 2,155 | [1] |
Dividend payable | ' | 318.8 | [1] |
Current portion of long-term debt | ' | 150 | [1] |
Total Truck, Parts and Other Current Liabilities | 2,598.10 | 2,623.80 | [1] |
Residual value guarantees and deferred revenues | 982.8 | 1,093.80 | [1] |
Other liabilities | 772.8 | 734.4 | [1] |
Total Liabilities | 4,353.70 | 4,452 | [1] |
Financial Services | ' | ' | |
ASSETS | ' | ' | |
Cash and cash equivalents | 108.4 | 92.4 | [1] |
Finance and other receivables, net | 8,852.60 | 8,812.10 | [1] |
Equipment on operating leases, net | 2,318.20 | 2,290.10 | [1] |
Other assets | 488.5 | 435.5 | [1] |
Total Assets | 11,767.70 | 11,630.10 | [1] |
Current Liabilities | ' | ' | |
Accounts payable, accrued expenses and other | 380 | 391.7 | [1] |
Commercial paper and bank loans | 2,925.80 | 2,508.90 | [1] |
Term notes | 5,292.40 | 5,765.30 | [1] |
Deferred taxes and other liabilities | 911.5 | 973.3 | [1] |
Total Liabilities | $9,509.70 | $9,639.20 | [1] |
[1] | The December 31, 2013 consolidated balance sheet has been derived from audited financial statements. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
Statement of Financial Position [Abstract] | ' | ' | |
Preferred stock, no par value | ' | ' | [1] |
Preferred stock, authorized | 1,000,000 | 1,000,000 | [1] |
Preferred stock, issued | 0 | 0 | [1] |
Common stock, par value | $1 | $1 | [1] |
Common stock, Authorized | 1,200,000,000 | 1,200,000,000 | [1] |
Common stock, issued | 354,800,000 | 354,300,000 | [1] |
Treasury stock, shares | 600,000 | ' | |
[1] | The December 31, 2013 consolidated balance sheet has been derived from audited financial statements. |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
OPERATING ACTIVITIES: | ' | ' |
Net income | $964.50 | $837.10 |
Depreciation and amortization: | ' | ' |
Property, plant and equipment | 201.7 | 150.4 |
Equipment on operating leases and other | 475.9 | 438.3 |
Provision for losses on financial services receivables | 12.5 | 15.4 |
Other, net | -68.8 | 54.3 |
Change in operating assets and liabilities: | ' | ' |
Trade and other receivables | -295.3 | -185.5 |
Wholesale receivables on new trucks | -90.8 | -207.3 |
Sales-type finance leases and dealer direct loans on new trucks | -37.5 | -19 |
Inventories | -219.6 | -117.3 |
Accounts payable and accrued expenses | 467.6 | 511 |
Income taxes, warranty and other | 191.4 | 222.9 |
Net Cash Provided by Operating Activities | 1,601.60 | 1,700.30 |
INVESTING ACTIVITIES: | ' | ' |
Originations of retail loans and direct financing leases | -2,242.10 | -2,189.50 |
Collections on retail loans and direct financing leases | 2,098.70 | 1,892 |
Net decrease in wholesale receivables on used equipment | 7.6 | 7.2 |
Purchases of marketable securities | -899.9 | -658.5 |
Proceeds from sales and maturities of marketable securities | 772 | 628.5 |
Payments for property, plant and equipment | -228.4 | -377.8 |
Acquisitions of equipment for operating leases | -880.2 | -1,004.70 |
Proceeds from asset disposals | 290 | 238.7 |
Net Cash Used in Investing Activities | -1,082.30 | -1,464.10 |
FINANCING ACTIVITIES: | ' | ' |
Payments of cash dividends | -545.8 | -212.3 |
Purchases of treasury stock | -25.5 | ' |
Proceeds from stock compensation transactions | 16.4 | 25.7 |
Net increase (decrease) in commercial paper and short-term bank loans | 595.3 | -912.1 |
Proceeds from long-term debt | 1,266.80 | 1,884.10 |
Payments of long-term debt | -1,883 | -565.5 |
Net Cash (Used in) Provided by Financing Activities | -575.8 | 219.9 |
Effect of exchange rate changes on cash | -45.2 | -18.1 |
Net (Decrease) Increase in Cash and Cash Equivalents | -101.7 | 438 |
Cash and cash equivalents at beginning of period | 1,750.10 | 1,272.40 |
Cash and cash equivalents at end of period | $1,648.40 | $1,710.40 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
NOTE A - Basis of Presentation | |||||||||||||||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. For further information, refer to the consolidated financial statements and footnotes included in PACCAR Inc’s (PACCAR or the Company) Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||
Earnings per Share: Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding, plus the effect of any participating securities. Diluted earnings per common share are computed assuming that all potentially dilutive securities are converted into common shares under the treasury stock method. The dilutive and antidilutive options are shown separately in the table below. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Additional shares | 1,112,000 | 994,000 | 1,124,000 | 907,000 | |||||||||||||
Antidilutive options | 655,000 | 783,000 | 664,000 | 873,000 | |||||||||||||
New Accounting Pronouncements: In June 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period. The amendment in this ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation costs should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has been rendered. This ASU is effective for annual periods and interim periods beginning after December 15, 2015 and early adoption is permitted. This amendment may be applied (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company does not expect the adoption of the ASU to have a material impact on its consolidated financial statements. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU amends the existing accounting standards for revenue recognition. Under the new revenue recognition model, a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The amendment may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the transition alternatives and impact on the Company’s consolidated financial statements. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the consolidated financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if available under the applicable tax jurisdiction. The ASU was effective for annual periods beginning after December 15, 2013 and interim periods within those annual periods. The Company adopted ASU 2013-11 in the first quarter of 2014; the implementation of this amendment did not have a material impact on the Company’s consolidated financial statements. |
Investments_in_Marketable_Debt
Investments in Marketable Debt Securities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Investments in Marketable Debt Securities | ' | ||||||||||||||||
NOTE B - Investments in Marketable Debt Securities | |||||||||||||||||
The Company’s investments in marketable debt securities are classified as available-for-sale. These investments are stated at fair value with any unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive (loss) income (AOCI). | |||||||||||||||||
The Company utilizes third-party pricing services for all of its marketable debt security valuations. The Company reviews the pricing methodology used by the third-party pricing services including the manner employed to collect market information. On a quarterly basis, the Company also performs review and validation procedures on the pricing information received from the third-party providers. These procedures help ensure that the fair value information used by the Company is determined in accordance with applicable accounting guidance. | |||||||||||||||||
The Company evaluates its investment in marketable debt securities at the end of each reporting period to determine if a decline in fair value is other than temporary. Realized losses are recognized upon management’s determination that a decline in fair value is other than temporary. The determination of other-than-temporary impairment is a subjective process, requiring the use of judgments and assumptions regarding the amount and timing of recovery. The Company reviews and evaluates its investments at least quarterly to identify investments that have indications of other-than-temporary impairments. It is reasonably possible that a change in estimate could occur in the near term relating to other-than-temporary impairment. Accordingly, the Company considers several factors when evaluating debt securities for other-than-temporary impairment, including whether the decline in fair value of the security is due to increased default risk for the specific issuer or market interest rate risk. | |||||||||||||||||
In assessing default risk, the Company considers the collectability of principal and interest payments by monitoring changes to issuers’ credit ratings, specific credit events associated with individual issuers as well as the credit ratings of any financial guarantor, and the extent and duration to which amortized cost exceeds fair value. | |||||||||||||||||
In assessing market interest rate risk, including benchmark interest rates and credit spreads, the Company considers its intent for selling the securities and whether it is more likely than not the Company will be able to hold these securities until the recovery of any unrealized losses. | |||||||||||||||||
Marketable debt securities at September 30, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||
At September 30, 2014 | Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
U.S. tax-exempt securities | $ | 359 | $ | 1.3 | $ | 0.1 | $ | 360.2 | |||||||||
U.S. corporate securities | 61.1 | 0.3 | 61.4 | ||||||||||||||
U.S. government and agency securities | 5.4 | 5.4 | |||||||||||||||
Non-U.S. corporate securities | 589.2 | 4.1 | 593.3 | ||||||||||||||
Non-U.S. government securities | 186 | 1.7 | 0.2 | 187.5 | |||||||||||||
Other debt securities | 112.6 | 0.2 | 112.8 | ||||||||||||||
$ | 1,313.30 | $ | 7.6 | $ | 0.3 | $ | 1,320.60 | ||||||||||
At December 31, 2013 | Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
U.S. tax-exempt securities | $ | 214.9 | $ | 1.2 | $ | 216.1 | |||||||||||
U.S. corporate securities | 78.2 | 0.1 | $ | 0.1 | 78.2 | ||||||||||||
U.S. government and agency securities | 5.5 | 5.5 | |||||||||||||||
Non-U.S. corporate securities | 608.5 | 1.2 | 0.4 | 609.3 | |||||||||||||
Non-U.S. government securities | 217.3 | 0.7 | 0.5 | 217.5 | |||||||||||||
Other debt securities | 140.5 | 0.4 | 140.9 | ||||||||||||||
$ | 1,264.90 | $ | 3.6 | $ | 1 | $ | 1,267.50 | ||||||||||
The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest and dividend income and realized gains and losses are included in investment income. The cost of securities sold is based on the specific identification method. Gross realized gains were $.9 and $1.7 for the nine months ended September 30, 2014 and 2013, respectively, and gross realized losses were $.1 and $.5 for the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||
Marketable debt securities with continuous unrealized losses and their related fair values were as follows: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
Less than | Twelve Months | Less than | Twelve Months | ||||||||||||||
Twelve Months | or Greater | Twelve Months | or Greater | ||||||||||||||
Fair value | $ | 163.2 | $ | 26.8 | $ | 388.3 | $ | 28.4 | |||||||||
Unrealized losses | 0.1 | 0.2 | 0.9 | 0.1 | |||||||||||||
For the investment securities in gross unrealized loss positions identified above, the Company does not intend to sell the investment securities. It is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairments during the periods presented. | |||||||||||||||||
Contractual maturities on marketable debt securities at September 30, 2014 were as follows: | |||||||||||||||||
Maturities: | Amortized | Fair | |||||||||||||||
Cost | Value | ||||||||||||||||
Within one year | $ | 474.2 | $ | 474.8 | |||||||||||||
One to five years | 839 | 845.7 | |||||||||||||||
More than ten years | 0.1 | 0.1 | |||||||||||||||
$ | 1,313.30 | $ | 1,320.60 | ||||||||||||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
NOTE C - Inventories | |||||||||
Inventories are stated at the lower of cost or market. Cost of inventories in the U.S. is determined principally by the last-in, first-out (LIFO) method. Cost of all other inventories is determined principally by the first-in, first-out (FIFO) method. | |||||||||
Inventories include the following: | |||||||||
September 30 | December 31 | ||||||||
2014 | 2013 | ||||||||
Finished products | $ | 589 | $ | 440.6 | |||||
Work in process and raw materials | 572.4 | 545.2 | |||||||
1,161.40 | 985.8 | ||||||||
Less LIFO reserve | (173.3 | ) | (172.2 | ) | |||||
$ | 988.1 | $ | 813.6 | ||||||
Under the LIFO method of accounting (used for approximately 42% of September 30, 2014 inventories), an actual valuation can be made only at the end of each year based on year-end inventory levels and costs. Accordingly, interim valuations are based on management’s estimates of those year-end amounts. |
Finance_and_Other_Receivables
Finance and Other Receivables | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||
Finance and Other Receivables | ' | ||||||||||||||||||||
NOTE D - Finance and Other Receivables | |||||||||||||||||||||
Finance and other receivables include the following: | |||||||||||||||||||||
September 30 | December 31 | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Loans | $ | 3,944.10 | $ | 3,977.40 | |||||||||||||||||
Direct financing leases | 2,762.50 | 2,680.80 | |||||||||||||||||||
Sales-type finance leases | 905.2 | 921.1 | |||||||||||||||||||
Dealer wholesale financing | 1,643.00 | 1,616.50 | |||||||||||||||||||
Operating lease and other trade receivables | 103.3 | 121.3 | |||||||||||||||||||
Unearned interest: Finance leases | (377.6 | ) | (375.7 | ) | |||||||||||||||||
$ | 8,980.50 | $ | 8,941.40 | ||||||||||||||||||
Less allowance for losses: | |||||||||||||||||||||
Loans and leases | (109.8 | ) | (110.9 | ) | |||||||||||||||||
Dealer wholesale financing | (10.1 | ) | (10.4 | ) | |||||||||||||||||
Operating lease and other trade receivables | (8.0 | ) | (8.0 | ) | |||||||||||||||||
$ | 8,852.60 | $ | 8,812.10 | ||||||||||||||||||
Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at September 30, 2014 or December 31, 2013. 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 as a normal part of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. | |||||||||||||||||||||
On average, modifications extended contractual terms by approximately four months in 2014 and six months in 2013 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2014 and December 31, 2013. | |||||||||||||||||||||
When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies loans and finance leases for credit reasons and grants a concession, the modifications are classified as troubled debt restructurings (TDRs). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs. | |||||||||||||||||||||
The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and direct and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires monthly reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains personal guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest generally over 36 to 60 months and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves. | |||||||||||||||||||||
The Company individually evaluates certain finance receivables for impairment. Finance receivables that are evaluated individually for impairment consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. A finance receivable is impaired if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. In addition, all retail loans and leases which have been classified as TDRs and all customer accounts over 90 days past due are considered impaired. Generally, impaired accounts are on non-accrual status. Impaired accounts classified as TDRs which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments. | |||||||||||||||||||||
Impaired receivables are 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. | |||||||||||||||||||||
For finance receivables that are not individually impaired, the Company collectively evaluates and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data and current market conditions. Information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse. The Company has developed a range of loss estimates for each of its country portfolios 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 as dealer wholesale, dealer retail and customer retail segments. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating more than five trucks. All other customer retail accounts are considered owner/operator. Each individual class has similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk. | |||||||||||||||||||||
The allowance for credit losses is summarized as follows: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
Wholesale | Retail | Retail | Other* | Total | |||||||||||||||||
Balance at January 1 | $ | 10.4 | $ | 13.4 | $ | 97.5 | $ | 8 | $ | 129.3 | |||||||||||
Provision for losses | 0.2 | (.5 | ) | 11.5 | 1.3 | 12.5 | |||||||||||||||
Charge-offs | (11.4 | ) | (2.7 | ) | (14.1 | ) | |||||||||||||||
Recoveries | 3.3 | 0.6 | 3.9 | ||||||||||||||||||
Currency translation and other | (.5 | ) | (.1 | ) | (3.9 | ) | 0.8 | (3.7 | ) | ||||||||||||
Balance at September 30 | $ | 10.1 | $ | 12.8 | $ | 97 | $ | 8 | $ | 127.9 | |||||||||||
2013 | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
Wholesale | Retail | Retail | Other* | Total | |||||||||||||||||
Balance at January 1 | $ | 11.8 | $ | 13.4 | $ | 99.2 | $ | 5.6 | $ | 130 | |||||||||||
Provision for losses | (.7 | ) | (.7 | ) | 11.2 | 5.6 | 15.4 | ||||||||||||||
Charge-offs | (.2 | ) | (11.1 | ) | (6.7 | ) | (18.0 | ) | |||||||||||||
Recoveries | 4.2 | 1 | 5.2 | ||||||||||||||||||
Currency translation and other | (.1 | ) | (4.0 | ) | 3.2 | (.9 | ) | ||||||||||||||
Balance at September 30 | $ | 10.9 | $ | 12.6 | $ | 99.5 | $ | 8.7 | $ | 131.7 | |||||||||||
* | Operating lease and other trade receivables. | ||||||||||||||||||||
Information regarding finance receivables evaluated and determined individually and collectively is as follows: | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
At September 30, 2014 | Wholesale | Retail | Retail | Total | |||||||||||||||||
Recorded investment for impaired finance | $ | 16 | $ | 59.5 | $ | 75.5 | |||||||||||||||
receivables evaluated individually | |||||||||||||||||||||
Allowance for impaired finance receivables | 1.1 | 6.1 | 7.2 | ||||||||||||||||||
determined individually | |||||||||||||||||||||
Recorded investment for finance receivables | 1,627.00 | $ | 1,512.8 | 5,661.90 | 8,801.70 | ||||||||||||||||
evaluated collectively | |||||||||||||||||||||
Allowance for finance receivables determined | 9 | 12.8 | 90.9 | 112.7 | |||||||||||||||||
collectively | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
At December 31, 2013 | Wholesale | Retail | Retail | Total | |||||||||||||||||
Recorded investment for impaired finance | $ | 8.5 | $ | 42.1 | $ | 50.6 | |||||||||||||||
receivables evaluated individually | |||||||||||||||||||||
Allowance for impaired finance receivables | 1.4 | 5.9 | 7.3 | ||||||||||||||||||
determined individually | |||||||||||||||||||||
Recorded investment for finance receivables | 1,608.00 | $ | 1,525.60 | 5,635.90 | 8,769.50 | ||||||||||||||||
evaluated collectively | |||||||||||||||||||||
Allowance for finance receivables determined | 9 | 13.4 | 91.6 | 114 | |||||||||||||||||
collectively | |||||||||||||||||||||
The recorded investment for finance receivables that are on non-accrual status is as follows: | |||||||||||||||||||||
September 30 | December 31 | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Dealer: | |||||||||||||||||||||
Wholesale | $ | 14.8 | $ | 8 | |||||||||||||||||
Customer retail: | |||||||||||||||||||||
Fleet | 41.6 | 30.5 | |||||||||||||||||||
Owner/operator | 10.1 | 8.6 | |||||||||||||||||||
$ | 66.5 | $ | 47.1 | ||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
Impaired loans with no specific reserves were $28.3 and $10.7 at September 30, 2014 and December 31, 2013, respectively. Impaired loans with a specific reserve are summarized below. The impaired loans with specific reserve represent the unpaid principal balance. The recorded investment of impaired loans as of September 30, 2014 and December 31, 2013 was not significantly different than the unpaid principal balance. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At September 30, 2014 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Impaired loans with a specific reserve | $ | 3 | $ | 13.6 | $ | 2.8 | $ | 19.4 | |||||||||||||
Associated allowance | (1.1 | ) | (1.6 | ) | (.5 | ) | (3.2 | ) | |||||||||||||
Net carrying amount of impaired loans | $ | 1.9 | $ | 12 | $ | 2.3 | $ | 16.2 | |||||||||||||
Average recorded investment* | $ | 8.9 | $ | 21.6 | $ | 3.2 | $ | 33.7 | |||||||||||||
* Represents the average during the 12 months ended September 30, 2014. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2013 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Impaired loans with a specific reserve | $ | 8.5 | $ | 10.8 | $ | 3.1 | $ | 22.4 | |||||||||||||
Associated allowance | (1.4 | ) | (2.1 | ) | (.6 | ) | (4.1 | ) | |||||||||||||
Net carrying amount of impaired loans | $ | 7.1 | $ | 8.7 | $ | 2.5 | $ | 18.3 | |||||||||||||
Average recorded investment* | $ | 4.8 | $ | 31.4 | $ | 6 | $ | 42.2 | |||||||||||||
* | Represents the average during the 12 months ended September 30, 2013. | ||||||||||||||||||||
During the period the loans above were considered impaired, interest income recognized on a cash basis is as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Interest income recognized: | |||||||||||||||||||||
Dealer wholesale | $ | 0.1 | $ | 0.1 | |||||||||||||||||
Customer retail - fleet | $ | 0.3 | $ | 0.5 | 0.9 | 1.8 | |||||||||||||||
Customer retail - owner/operator | 0.1 | 0.3 | 0.4 | ||||||||||||||||||
$ | 0.4 | $ | 0.5 | $ | 1.3 | $ | 2.3 | ||||||||||||||
Credit Quality | |||||||||||||||||||||
The Company’s customers are principally concentrated in the transportation industry in North America, Europe and Australia. The Company’s portfolio is diversified over a large number of customers and dealers with no single customer or dealer balances representing over 5% of the total portfolio. The Company retains as collateral a security interest in the related equipment. | |||||||||||||||||||||
At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss. | |||||||||||||||||||||
The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high-risk. Watch accounts are not impaired. At-risk accounts are accounts that are impaired, including TDRs, accounts over 90 days past due and other accounts on non-accrual status. The tables below summarize the Company’s finance receivables by credit quality indicator and portfolio class. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At September 30, 2014 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Performing | $ | 1,611.00 | $ | 1,511.30 | $ | 4,480.40 | $ | 1,158.90 | $ | 8,761.60 | |||||||||||
Watch | 16 | 1.5 | 14.4 | 8.2 | 40.1 | ||||||||||||||||
At-risk | 16 | 48.6 | 10.9 | 75.5 | |||||||||||||||||
$ | 1,643.00 | $ | 1,512.80 | $ | 4,543.40 | $ | 1,178.00 | $ | 8,877.20 | ||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2013 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Performing | $ | 1,576.90 | $ | 1,520.10 | $ | 4,396.50 | $ | 1,219.50 | $ | 8,713.00 | |||||||||||
Watch | 31.1 | 5.5 | 12.7 | 7.2 | 56.5 | ||||||||||||||||
At-risk | 8.5 | 33.3 | 8.8 | 50.6 | |||||||||||||||||
$ | 1,616.50 | $ | 1,525.60 | $ | 4,442.50 | $ | 1,235.50 | $ | 8,820.10 | ||||||||||||
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, 2014 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Current and up to 30 days past due | $ | 1,631.80 | $ | 1,512.80 | $ | 4,516.10 | $ | 1,161.70 | $ | 8,822.40 | |||||||||||
31 – 60 days past due | 6.2 | 16.4 | 7.7 | 30.3 | |||||||||||||||||
Greater than 60 days past due | 5 | 10.9 | 8.6 | 24.5 | |||||||||||||||||
$ | 1,643.00 | $ | 1,512.80 | $ | 4,543.40 | $ | 1,178.00 | $ | 8,877.20 | ||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2013 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Current and up to 30 days past due | $ | 1,611.70 | $ | 1,525.60 | $ | 4,417.50 | $ | 1,221.40 | $ | 8,776.20 | |||||||||||
31 – 60 days past due | 1.7 | 9.2 | 6.3 | 17.2 | |||||||||||||||||
Greater than 60 days past due | 3.1 | 15.8 | 7.8 | 26.7 | |||||||||||||||||
$ | 1,616.50 | $ | 1,525.60 | $ | 4,442.50 | $ | 1,235.50 | $ | 8,820.10 | ||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||
The balance of TDRs was $41.4 and $27.6 at September 30, 2014 and December 31, 2013, respectively. At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Fleet | $ | 18.7 | $ | 18.5 | $ | 24.1 | $ | 23.9 | |||||||||||||
Owner/operator | 0.4 | 0.4 | 1.7 | 1.7 | |||||||||||||||||
$ | 19.1 | $ | 18.9 | $ | 25.8 | $ | 25.6 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Fleet | $ | 1.5 | $ | 1.3 | $ | 9.2 | $ | 8.9 | |||||||||||||
Owner/operator | 0.7 | 0.7 | 1.4 | 1.4 | |||||||||||||||||
$ | 2.2 | $ | 2 | $ | 10.6 | $ | 10.3 | ||||||||||||||
The effect on the allowance for credit losses from such modifications was not significant at September 30, 2014 and 2013. | |||||||||||||||||||||
TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past due) during the period by portfolio class are as follows: | |||||||||||||||||||||
Nine Months Ended September 30, | 2014 | 2013 | |||||||||||||||||||
Fleet | $ | 1.6 | $ | 2.5 | |||||||||||||||||
Owner/operator | .9 | 0.2 | |||||||||||||||||||
$ | 2.5 | $ | 2.7 | ||||||||||||||||||
The TDRs that subsequently defaulted did not significantly impact the Company’s allowance for credit losses at September 30, 2014 and 2013. | |||||||||||||||||||||
Repossessions | |||||||||||||||||||||
When the Company determines 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 Financial Services other assets on the Consolidated Balance Sheets. The balance of repossessed inventory at September 30, 2014 and December 31, 2013 was $18.4 and $13.7, respectively. Proceeds from the sales of repossessed assets were $44.3 and $44.5 for the nine months ended September 30, 2014 and 2013, respectively. These amounts are included in proceeds from asset disposals in the Condensed Consolidated Statements of Cash Flows. Write-downs of repossessed equipment on operating leases are recorded as impairments and included in Financial Services depreciation and other expense on the Consolidated Statements of Comprehensive Income. |
Product_Support_Liabilities
Product Support Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Product Support Liabilities | ' | ||||||||
NOTE E - Product Support Liabilities | |||||||||
Product support liabilities are estimated future payments related to product warranties, optional extended warranties and repair and maintenance (R&M) contracts. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical data regarding the source, frequency and cost of claims, net of any recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred. | |||||||||
Changes in product support liabilities are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Balance at January 1 | $ | 630.5 | $ | 540.7 | |||||
Cost accruals and revenue deferrals | 490 | 343.3 | |||||||
Payments and revenue recognized | (335.0 | ) | (300.7 | ) | |||||
Currency translation | (27.2 | ) | 4.6 | ||||||
Balance at September 30 | $ | 758.3 | $ | 587.9 | |||||
In prior periods, cost accruals and revenue deferrals for the R&M contracts were netted against payments and revenue recognized instead of showing these amounts gross. The netting of these amounts affected only the disclosure in Note E; there was no effect on the Consolidated Statements of Comprehensive Income, the Consolidated Balance Sheets or the Condensed Consolidated Statements of Cash Flows. The table below presents “Cost accruals and revenue deferrals” and “Payments and revenue recognized” as previously reported in Note E and as revised: | |||||||||
Nine Months Ended | |||||||||
30-Sep-13 | |||||||||
Previously | Revised | ||||||||
Reported | |||||||||
Cost accruals and revenue deferrals | $ | 238 | $ | 343.3 | |||||
Payments and revenue recognized | (195.4 | ) | (300.7 | ) |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||
NOTE F – Stockholders’ Equity | |||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||
The components of comprehensive income are as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net income | $ | 371.4 | $ | 309.4 | $ | 964.5 | $ | 837.1 | |||||||||||||
Other comprehensive income (OCI): | |||||||||||||||||||||
Unrealized gains (losses) on derivative contracts | 7.5 | (3.5 | ) | 7.9 | 9.8 | ||||||||||||||||
Tax effect | (2.6 | ) | 0.8 | (2.4 | ) | (3.3 | ) | ||||||||||||||
4.9 | (2.7 | ) | 5.5 | 6.5 | |||||||||||||||||
Unrealized gains (losses) on marketable debt securities | 1 | 0.1 | 4.7 | (5.7 | ) | ||||||||||||||||
Tax effect | (.1 | ) | (1.1 | ) | 1.6 | ||||||||||||||||
0.9 | 0.1 | 3.6 | (4.1 | ) | |||||||||||||||||
Pension plans | 14.5 | 2.5 | 22 | 36.8 | |||||||||||||||||
Tax effect | (4.4 | ) | (1.5 | ) | (7.0 | ) | (12.6 | ) | |||||||||||||
10.1 | 1 | 15 | 24.2 | ||||||||||||||||||
Foreign currency translation (losses) gains | (278.0 | ) | 120.4 | (231.4 | ) | (58.2 | ) | ||||||||||||||
Net other comprehensive (loss) income | (262.1 | ) | 118.8 | (207.3 | ) | (31.6 | ) | ||||||||||||||
Comprehensive income | $ | 109.3 | $ | 428.2 | $ | 757.2 | $ | 805.5 | |||||||||||||
Accumulated Other Comprehensive (Loss) Income | |||||||||||||||||||||
The components of AOCI as of September 30, 2014 and December 31, 2013 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following: | |||||||||||||||||||||
Derivative | Marketable Debt | Pension | Foreign | Total | |||||||||||||||||
Contracts | Securities | Plans | Currency | ||||||||||||||||||
Translation | |||||||||||||||||||||
Balance at December 31, 2013 | $ | (15.1 | ) | $ | 1.7 | $ | (262.2 | ) | $ | 284.3 | $ | 8.7 | |||||||||
Recorded into AOCI | (.2 | ) | 4.1 | 3.8 | (231.4 | ) | (223.7 | ) | |||||||||||||
Reclassified out of AOCI | 5.7 | (.5 | ) | 11.2 | 16.4 | ||||||||||||||||
Net other comprehensive income (loss) | 5.5 | 3.6 | 15 | (231.4 | ) | (207.3 | ) | ||||||||||||||
Balance at September 30, 2014 | $ | (9.6 | ) | $ | 5.3 | $ | (247.2 | ) | $ | 52.9 | $ | (198.6 | ) | ||||||||
The components of AOCI as of September 30, 2013 and December 31, 2012 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following: | |||||||||||||||||||||
Derivative | Marketable Debt | Pension | Foreign | Total | |||||||||||||||||
Contracts | Securities | Plans | Currency | ||||||||||||||||||
Translation | |||||||||||||||||||||
Balance at December 31, 2012 | $ | (27.2 | ) | $ | 6.6 | $ | (496.5 | ) | $ | 357.6 | $ | (159.5 | ) | ||||||||
Recorded into AOCI | 27.3 | (5.1 | ) | 2.1 | (56.2 | ) | (31.9 | ) | |||||||||||||
Reclassified out of AOCI | (20.8 | ) | 1 | 22.1 | (2.0 | ) | 0.3 | ||||||||||||||
Net other comprehensive income (loss) | 6.5 | (4.1 | ) | 24.2 | (58.2 | ) | (31.6 | ) | |||||||||||||
Balance at September 30, 2013 | $ | (20.7 | ) | $ | 2.5 | $ | (472.3 | ) | $ | 299.4 | $ | (191.1 | ) | ||||||||
Reclassifications out of AOCI during the nine months ended September 30, 2014 are as follows: | |||||||||||||||||||||
AOCI Components | Line Item in the Consolidated Statements of Comprehensive Income | Amount | |||||||||||||||||||
Reclassified | |||||||||||||||||||||
Out of AOCI | |||||||||||||||||||||
Unrealized (gains) and losses on derivative contracts: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Foreign-exchange contracts | Cost of sales and revenues | $ | 1.7 | ||||||||||||||||||
Interest and other expense, net | 0.1 | ||||||||||||||||||||
Financial Services | |||||||||||||||||||||
Interest-rate contracts | Interest and other borrowing expenses | 8 | |||||||||||||||||||
Pre-tax expense increase | 9.8 | ||||||||||||||||||||
Tax benefit | (4.1 | ) | |||||||||||||||||||
After-tax expense increase | 5.7 | ||||||||||||||||||||
Unrealized (gains) and losses on marketable debt securities: | |||||||||||||||||||||
Marketable debt securities | Investment income | (.8 | ) | ||||||||||||||||||
Tax expense | 0.3 | ||||||||||||||||||||
After-tax income increase | (.5 | ) | |||||||||||||||||||
Pension plans: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Actuarial loss | Cost of sales and revenues $8.4, SG&A $6.5 | 14.9 | |||||||||||||||||||
Prior service costs | Cost of sales and revenues $.7, SG&A $.2 | 0.9 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Actuarial loss | SG&A | 0.8 | |||||||||||||||||||
Pre-tax expense increase | 16.6 | ||||||||||||||||||||
Tax benefit | (5.4 | ) | |||||||||||||||||||
After-tax expense increase | 11.2 | ||||||||||||||||||||
Total reclassifications out of AOCI | $ | 16.4 | |||||||||||||||||||
Reclassifications out of AOCI during the nine months ended September 30, 2013 are as follows: | |||||||||||||||||||||
AOCI Components | Line Item in the Consolidated Statements of Comprehensive Income | Amount | |||||||||||||||||||
Reclassified | |||||||||||||||||||||
Out of AOCI | |||||||||||||||||||||
Unrealized (gains) and losses on derivative contracts: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Foreign-exchange contracts | Cost of sales and revenues | $ | (.5 | ) | |||||||||||||||||
Interest and other expense, net | (.2 | ) | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Interest-rate contracts | Interest and other borrowing expenses | (29.1 | ) | ||||||||||||||||||
Pre-tax expense reduction | (29.8 | ) | |||||||||||||||||||
Tax expense | 9 | ||||||||||||||||||||
After-tax expense reduction | (20.8 | ) | |||||||||||||||||||
Unrealized (gains) and losses on marketable debt securities: | |||||||||||||||||||||
Marketable debt securities | Investment income | 1.4 | |||||||||||||||||||
Tax benefit | (.4 | ) | |||||||||||||||||||
After-tax income reduction | 1 | ||||||||||||||||||||
Pension plans: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Prior service costs | Cost of sales and revenues $.8, SG&A $.1 | 0.9 | |||||||||||||||||||
Actuarial loss | Cost of sales and revenues $17.4, SG&A $14.2 R&D $.1 | 31.7 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Actuarial loss | SG&A | 1.3 | |||||||||||||||||||
Pre-tax expense increase | 33.9 | ||||||||||||||||||||
Tax benefit | (11.8 | ) | |||||||||||||||||||
After-tax expense increase | 22.1 | ||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||
Truck, Parts and Other | Interest and other expense, net | (1.1 | ) | ||||||||||||||||||
Financial Services | Interest and other borrowing expenses | (.9 | ) | ||||||||||||||||||
Expense reduction | (2.0 | ) | |||||||||||||||||||
Total reclassifications out of AOCI | $ | 0.3 | |||||||||||||||||||
Stock Compensation Plans | |||||||||||||||||||||
Stock-based compensation expense was $2.5 and $12.9 for the three and nine months ended September 30, 2014, respectively, and $2.7 and $11.2 for the three and nine months ended September 30, 2013, respectively. Realized tax benefits related to the excess of deductible amounts over expense recognized amounted to $.5 and $2.0 for the three and nine months ended September 30, 2014, respectively, and $1.0 and $2.5 for the three and nine months ended September 30, 2013, respectively, and have been classified as a financing cash flow. | |||||||||||||||||||||
During the first three quarters of 2014, the Company issued 541,252 common shares under deferred and stock compensation arrangements. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE G - Income Taxes | |
The effective income tax rate in the third quarter of 2014 of 32.8% increased from 29.7% in the same period of 2013, and the effective income tax rate in the first nine months of 2014 of 33.0% increased from 30.8% in the same period of 2013. The increases in the effective tax rates for the third quarter and first nine months were primarily due to a higher proportion of income generated in higher taxed jurisdictions in 2014 as compared to 2013. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
NOTE H - Segment Information | |||||||||||||||||
PACCAR operates in three principal segments: Truck, Parts and Financial Services. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net sales and revenues: | |||||||||||||||||
Truck | $ | 4,000.10 | $ | 3,416.60 | $ | 11,168.10 | $ | 9,924.60 | |||||||||
Less intersegment | (189.5 | ) | (155.4 | ) | (573.3 | ) | (460.1 | ) | |||||||||
External customers | 3,810.60 | 3,261.20 | 10,594.80 | 9,464.50 | |||||||||||||
Parts | 797 | 726.2 | 2,324.30 | 2,126.00 | |||||||||||||
Less intersegment | (12.8 | ) | (10.9 | ) | (35.5 | ) | (33.8 | ) | |||||||||
External customers | 784.2 | 715.3 | 2,288.80 | 2,092.20 | |||||||||||||
Other | 27.7 | 30.1 | 92.1 | 92.8 | |||||||||||||
4,622.50 | 4,006.60 | 12,975.70 | 11,649.50 | ||||||||||||||
Financial Services | 305.9 | 293.5 | 902.2 | 875.4 | |||||||||||||
$ | 4,928.40 | $ | 4,300.10 | $ | 13,877.90 | $ | 12,524.90 | ||||||||||
Income (loss) before income taxes: | |||||||||||||||||
Truck | $ | 330 | $ | 242.5 | $ | 801.9 | $ | 645.9 | |||||||||
Parts | 127.9 | 106.5 | 366.7 | 311.2 | |||||||||||||
Other | (8.1 | ) | (4.5 | ) | (19.8 | ) | (18.6 | ) | |||||||||
449.8 | 344.5 | 1,148.80 | 938.5 | ||||||||||||||
Financial Services | 96.9 | 88.2 | 274.1 | 249.8 | |||||||||||||
Investment income | 5.7 | 7.3 | 17 | 21.8 | |||||||||||||
$ | 552.4 | $ | 440 | $ | 1,439.90 | $ | 1,210.10 | ||||||||||
Depreciation and amortization: | |||||||||||||||||
Truck | $ | 103.5 | $ | 89.2 | $ | 303.7 | $ | 250.9 | |||||||||
Parts | 1.5 | 1.2 | 4.2 | 3.9 | |||||||||||||
Other | 3.1 | 2.5 | 8.4 | 7.4 | |||||||||||||
108.1 | 92.9 | 316.3 | 262.2 | ||||||||||||||
Financial Services | 122 | 113.5 | 361.3 | 326.5 | |||||||||||||
$ | 230.1 | $ | 206.4 | $ | 677.6 | $ | 588.7 | ||||||||||
Truck and Parts | |||||||||||||||||
The Truck segment includes the manufacture of trucks and the Parts segment includes the distribution of related aftermarket parts, both of which are sold through the same network of independent dealers. These segments derive a large proportion of their revenues and operating profits from operations in North America and Europe. The Truck segment incurs substantial costs to design, manufacture and sell trucks to its customers. The sale of new trucks provides the Parts segment with the basis for parts sales that may continue over the life of the truck, but are generally concentrated in the first five years after truck delivery. To reflect the benefit the Parts segment receives from costs incurred by the Truck segment, certain expenses are allocated from the Truck segment to the Parts segment. The expenses allocated are based on a percentage of the average annual expenses for factory overhead, engineering, research and development (R&D) and selling, general and administrative (SG&A) expenses for the preceding five years. The allocation is based on the ratio of the average parts direct margin dollars (net sales less material and labor costs) to the total truck and parts direct margin dollars for the previous five years. The Company believes such expenses have been allocated on a reasonable basis. Truck segment assets related to the indirect expense allocation are not allocated to the Parts segment. | |||||||||||||||||
Financial Services | |||||||||||||||||
The Financial Services segment includes finance and leasing of primarily PACCAR products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe. | |||||||||||||||||
Other | |||||||||||||||||
Included in Other is the Company’s industrial winch manufacturing business. Also within this category are other sales, income and expense not attributable to a reportable segment, including a portion of corporate expenses. | |||||||||||||||||
The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
NOTE I - Derivative Financial Instruments | |||||||||||||||||
As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rates and foreign currency 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 and certain foreign exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company had no material exposures to default at September 30, 2014. | |||||||||||||||||
The Company uses regression analysis to assess effectiveness of interest-rate contracts on a quarterly basis. For foreign-exchange contracts, the Company performs quarterly assessments to ensure that critical terms continue to match. 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 currently in earnings. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. | |||||||||||||||||
Interest-Rate Contracts: The Company enters into various interest-rate contracts, including interest-rate swaps and cross currency interest-rate swaps. Interest-rate swaps 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. Cross currency interest-rate swaps involve the exchange of notional amounts and interest payments in different currencies. The Company is exposed to interest-rate and exchange-rate risk caused by market volatility as a result of its borrowing activities. The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings. Net amounts paid or received are reflected as adjustments to interest expense. | |||||||||||||||||
At September 30, 2014, the notional amount of the Company’s interest-rate contracts was $3,724.3. Notional maturities for all interest-rate contracts are $238.5 for the remainder of 2014, $1,271.4 for 2015, $1,230.7 for 2016, $543.3 for 2017, $330.2 for 2018 and $110.2 thereafter. The majority of these contracts are floating to fixed swaps that effectively convert an equivalent amount of commercial paper and other variable rate debt to fixed rates. | |||||||||||||||||
Foreign-Exchange Contracts: The Company enters into foreign-exchange contracts to hedge certain anticipated transactions and assets and liabilities denominated in foreign currencies, particularly the Canadian dollar, the euro, the British pound, the Australian dollar, the Brazilian real and the Mexican peso. The objective is to reduce fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. At September 30, 2014, the notional amount of the outstanding foreign-exchange contracts was $351.4. Foreign-exchange contracts mature within one year. | |||||||||||||||||
The following table presents the balance sheet classification, fair value, gross and pro-forma net amounts of derivative financial instruments: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||
Derivatives designated under hedge accounting: | |||||||||||||||||
Interest-rate contracts: | |||||||||||||||||
Financial Services: | |||||||||||||||||
Other assets | $ | 54.5 | $ | 46.3 | |||||||||||||
Deferred taxes and other liabilities | $ | 48.2 | $ | 67.7 | |||||||||||||
Foreign-exchange contracts: | |||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Other current assets | 1.7 | ||||||||||||||||
Accounts payable, accrued expenses and other | 0.6 | 0.6 | |||||||||||||||
Total | $ | 56.2 | $ | 48.8 | $ | 46.3 | $ | 68.3 | |||||||||
Economic hedges: | |||||||||||||||||
Interest-rate contracts: | |||||||||||||||||
Financial Services: | |||||||||||||||||
Deferred taxes and other liabilities | $ | 0.2 | |||||||||||||||
Foreign-exchange contracts: | |||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Other current assets | $ | 0.7 | $ | 0.6 | |||||||||||||
Accounts payable, accrued expenses and other | 0.5 | $ | 0.2 | ||||||||||||||
Financial Services: | |||||||||||||||||
Other assets | 7.3 | 1.1 | |||||||||||||||
Deferred taxes and other liabilities | 0.1 | 0.1 | |||||||||||||||
Total | $ | 8 | $ | 0.8 | $ | 1.7 | $ | 0.3 | |||||||||
Gross amounts recognized in Balance Sheet | $ | 64.2 | $ | 49.6 | $ | 48 | $ | 68.6 | |||||||||
Less amounts not offset in financial instruments: | |||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Foreign-exchange contracts | (.1 | ) | (.1 | ) | (.2 | ) | (.2 | ) | |||||||||
Financial Services: | |||||||||||||||||
Interest-rate contracts | (3.5 | ) | (3.5 | ) | (16.1 | ) | (16.1 | ) | |||||||||
Pro-forma net amount | $ | 60.6 | $ | 46 | $ | 31.7 | $ | 52.3 | |||||||||
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 expenses in the Financial Services segment of the Consolidated Statements of Comprehensive Income as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest-rate swaps | $ | 0.6 | $ | 0.2 | $ | 0.1 | $ | 0.6 | |||||||||
Term notes | (1.0 | ) | (1.2 | ) | (2.2 | ) | (3.9 | ) | |||||||||
Cash Flow Hedges | |||||||||||||||||
Substantially all of the Company’s interest-rate contracts and some foreign-exchange contracts have been designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in AOCI 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 6.4 years. | |||||||||||||||||
Amounts in AOCI are reclassified into net income in the same period in which the hedged transaction affects earnings. Net realized gains and losses from interest-rate contracts are recognized as an adjustment to interest expense. Net realized gains and losses from foreign-exchange contracts are recognized as an adjustment to cost of sales or to Financial Services interest expense, consistent with the hedged transaction. The Company recognized gains on the ineffective portions of $.3 for the third quarters of 2014 and 2013, and gain of nil and $.1 for the first nine months of 2014 and 2013, respectively. | |||||||||||||||||
The following table presents the pre-tax effects of derivative instruments recognized in OCI: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Gain (loss) recognized in OCI: | |||||||||||||||||
Truck, Parts and Other | $ | 2.5 | $ | (.3 | ) | ||||||||||||
Financial Services | $ | 28.7 | $ | (1.6 | ) | ||||||||||||
$ | 28.7 | $ | 2.5 | $ | (1.6 | ) | $ | (.3 | ) | ||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
(Loss) gain recognized in OCI: | |||||||||||||||||
Truck, Parts and Other | $ | (4.6 | ) | $ | (1.7 | ) | |||||||||||
Financial Services | $ | (33.1 | ) | $ | 41.3 | ||||||||||||
$ | (33.1 | ) | $ | (4.6 | ) | $ | 41.3 | $ | (1.7 | ) | |||||||
Expense (income) reclassified out of AOCI into income: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Cost of sales and revenues | $ | (.1 | ) | $ | 1.7 | ||||||||||||
Interest and other expense, net | 0.1 | ||||||||||||||||
Financial Services: | |||||||||||||||||
Interest and other borrowing expenses | $ | (23.6 | ) | $ | 8 | ||||||||||||
$ | (23.6 | ) | $ | (.1 | ) | $ | 8 | $ | 1.8 | ||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Cost of sales and revenues | $ | 1.8 | $ | (.5 | ) | ||||||||||||
Interest and other expense, net | (.5 | ) | (.2 | ) | |||||||||||||
Financial Services: | |||||||||||||||||
Interest and other borrowing expenses | $ | 32.8 | $ | (29.1 | ) | ||||||||||||
$ | 32.8 | $ | 1.3 | $ | (29.1 | ) | $ | (.7 | ) | ||||||||
The amount of loss recorded in AOCI at September 30, 2014 that is estimated to be reclassified to interest expense or cost of sales in the following 12 months if interest rates and exchange rates remain unchanged is approximately $21.1, 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 risk management strategy. | |||||||||||||||||
Economic Hedges | |||||||||||||||||
For other risk management purposes, the Company enters into derivative instruments that do not qualify for hedge accounting. These derivative instruments are used to mitigate the risk of market volatility arising from borrowings and foreign currency denominated transactions. Changes in the fair value of economic hedges are recorded in earnings in the period in which the change occurs. | |||||||||||||||||
The expense (income) recognized in earnings related to economic hedges is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Cost of sales and revenues | $ | (3.8 | ) | $ | (4.0 | ) | |||||||||||
Interest and other expense, net | 1.9 | 2.2 | |||||||||||||||
Financial Services: | |||||||||||||||||
Interest and other borrowing expenses | $ | (.3 | ) | (7.8 | ) | (3.1 | ) | ||||||||||
$ | (.3 | ) | $ | (9.7 | ) | $ | (4.9 | ) | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Cost of sales and revenues | $ | (1.3 | ) | $ | (.9 | ) | |||||||||||
Interest and other expense, net | 0.4 | 0.8 | |||||||||||||||
Financial Services: | |||||||||||||||||
Interest and other borrowing expenses | $ | (.1 | ) | (4.3 | ) | $ | (1.5 | ) | (8.9 | ) | |||||||
$ | (.1 | ) | $ | (5.2 | ) | $ | (1.5 | ) | $ | (9.0 | ) | ||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
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 nine months ended September 30, 2014. The Company’s policy is to recognize transfers between levels at the end of the reporting period. | |||||||||||||||||
The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements. | |||||||||||||||||
Marketable Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1. | |||||||||||||||||
The fair value of U.S. government agency obligations, non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2. | |||||||||||||||||
Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps and foreign currency exchange contracts. These derivative contracts are traded over the counter, and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads and forward rates and are categorized as Level 2. | |||||||||||||||||
Assets and Liabilities Subject to Recurring Fair Value Measurement | |||||||||||||||||
The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows: | |||||||||||||||||
At September 30, 2014 | Level 1 | Level 2 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Marketable debt securities | |||||||||||||||||
U.S. tax-exempt securities | $ | 360.2 | $ | 360.2 | |||||||||||||
U.S. corporate securities | 61.4 | 61.4 | |||||||||||||||
U.S. government and agency securities | $ | 5.2 | 0.2 | 5.4 | |||||||||||||
Non-U.S. corporate securities | 593.3 | 593.3 | |||||||||||||||
Non-U.S. government securities | 187.5 | 187.5 | |||||||||||||||
Other debt securities | 112.8 | 112.8 | |||||||||||||||
Total marketable debt securities | $ | 5.2 | $ | 1,315.40 | $ | 1,320.60 | |||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 49.8 | $ | 49.8 | |||||||||||||
Interest-rate swaps | 4.7 | 4.7 | |||||||||||||||
Foreign-exchange contracts | 9.7 | 9.7 | |||||||||||||||
Total derivative assets | $ | 64.2 | $ | 64.2 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 30.7 | $ | 30.7 | |||||||||||||
Interest-rate swaps | 17.7 | 17.7 | |||||||||||||||
Foreign-exchange contracts | 1.2 | 1.2 | |||||||||||||||
Total derivative liabilities | $ | 49.6 | $ | 49.6 | |||||||||||||
At December 31, 2013 | Level 1 | Level 2 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Marketable debt securities | |||||||||||||||||
U.S. tax-exempt securities | $ | 216.1 | $ | 216.1 | |||||||||||||
U.S. corporate securities | 78.2 | 78.2 | |||||||||||||||
U.S. government and agency securities | $ | 5.2 | 0.3 | 5.5 | |||||||||||||
Non-U.S. corporate securities | 609.3 | 609.3 | |||||||||||||||
Non-U.S. government securities | 217.5 | 217.5 | |||||||||||||||
Other debt securities | 140.9 | 140.9 | |||||||||||||||
Total marketable debt securities | $ | 5.2 | $ | 1,262.30 | $ | 1,267.50 | |||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 40.9 | $ | 40.9 | |||||||||||||
Interest-rate swaps | 5.4 | 5.4 | |||||||||||||||
Foreign-exchange contracts | 1.7 | 1.7 | |||||||||||||||
Total derivative assets | $ | 48 | $ | 48 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 42.1 | $ | 42.1 | |||||||||||||
Interest-rate swaps | 25.6 | 25.6 | |||||||||||||||
Foreign-exchange contracts | 0.9 | 0.9 | |||||||||||||||
Total derivative liabilities | $ | 68.6 | $ | 68.6 | |||||||||||||
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 and Cash Equivalents: Carrying amounts approximate fair value. | |||||||||||||||||
Financial Services Net Receivables: For floating-rate loans, wholesale financings, and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable loans. Finance lease receivables and related allowance for credit losses have been excluded from the accompanying table. | |||||||||||||||||
Debt: The carrying amounts of financial services commercial paper, variable rate bank loans and variable rate term notes approximate fair value. For fixed rate debt, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable debt. | |||||||||||||||||
The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Assets: | |||||||||||||||||
Financial Services fixed rate loans | $ | 3,600.30 | $ | 3,646.10 | $ | 3,592.70 | $ | 3,627.30 | |||||||||
Liabilities: | |||||||||||||||||
Truck, Parts and Other fixed rate debt | 150 | 151.1 | |||||||||||||||
Financial Services fixed rate debt | 3,433.90 | 3,453.90 | 4,039.10 | 4,087.00 |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
NOTE K - Employee Benefit Plans | |||||||||||||||||
The Company has several defined benefit pension plans, which cover a majority of its employees. The following information details the components of net pension expense for the Company’s defined benefit plans: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 17 | $ | 18.3 | $ | 51 | $ | 55 | |||||||||
Interest on projected benefit obligation | 23 | 20.2 | 69.1 | 60.6 | |||||||||||||
Expected return on assets | (32.1 | ) | (29.8 | ) | (96.3 | ) | (89.4 | ) | |||||||||
Amortization of prior service costs | 0.3 | 0.3 | 0.9 | 0.9 | |||||||||||||
Recognized actuarial loss | 5.3 | 11 | 15.7 | 33 | |||||||||||||
Net pension expense | $ | 13.5 | $ | 20 | $ | 40.4 | $ | 60.1 | |||||||||
During the three and nine months ended September 30, 2014, the Company contributed $3.7 and $12.0 to its pension plans, respectively, and $5.9 and $12.0 for the three and nine months ended September 30, 2013, respectively. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Investment in Marketable Debt Securities | ' |
The Company’s investments in marketable debt securities are classified as available-for-sale. These investments are stated at fair value with any unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive (loss) income (AOCI). | |
The Company utilizes third-party pricing services for all of its marketable debt security valuations. The Company reviews the pricing methodology used by the third-party pricing services including the manner employed to collect market information. On a quarterly basis, the Company also performs review and validation procedures on the pricing information received from the third-party providers. These procedures help ensure that the fair value information used by the Company is determined in accordance with applicable accounting guidance. | |
The Company evaluates its investment in marketable debt securities at the end of each reporting period to determine if a decline in fair value is other than temporary. Realized losses are recognized upon management’s determination that a decline in fair value is other than temporary. The determination of other-than-temporary impairment is a subjective process, requiring the use of judgments and assumptions regarding the amount and timing of recovery. The Company reviews and evaluates its investments at least quarterly to identify investments that have indications of other-than-temporary impairments. It is reasonably possible that a change in estimate could occur in the near term relating to other-than-temporary impairment. Accordingly, the Company considers several factors when evaluating debt securities for other-than-temporary impairment, including whether the decline in fair value of the security is due to increased default risk for the specific issuer or market interest rate risk. | |
In assessing default risk, the Company considers the collectability of principal and interest payments by monitoring changes to issuers’ credit ratings, specific credit events associated with individual issuers as well as the credit ratings of any financial guarantor, and the extent and duration to which amortized cost exceeds fair value. | |
In assessing market interest rate risk, including benchmark interest rates and credit spreads, the Company considers its intent for selling the securities and whether it is more likely than not the Company will be able to hold these securities until the recovery of any unrealized losses. | |
Inventory | ' |
Inventories are stated at the lower of cost or market. Cost of inventories in the U.S. is determined principally by the last-in, first-out (LIFO) method. Cost of all other inventories is determined principally by the first-in, first-out (FIFO) method. | |
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 as a normal part of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. | |
On average, modifications extended contractual terms by approximately four months in 2014 and six months in 2013 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2014 and December 31, 2013. | |
When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies loans and finance leases for credit reasons and grants a concession, the modifications are classified as troubled debt restructurings (TDRs). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs. | |
The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and direct and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires monthly reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains personal guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest generally over 36 to 60 months and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves. | |
The Company individually evaluates certain finance receivables for impairment. Finance receivables that are evaluated individually for impairment consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. A finance receivable is impaired if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. In addition, all retail loans and leases which have been classified as TDRs and all customer accounts over 90 days past due are considered impaired. Generally, impaired accounts are on non-accrual status. Impaired accounts classified as TDRs which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments. | |
Impaired receivables are 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. | |
For finance receivables that are not individually impaired, the Company collectively evaluates and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data and current market conditions. Information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse. The Company has developed a range of loss estimates for each of its country portfolios 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. | |
Product Support Liabilities | ' |
Product support liabilities are estimated future payments related to product warranties, optional extended warranties and repair and maintenance (R&M) contracts. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical data regarding the source, frequency and cost of claims, net of any recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred. | |
Derivative Financial Instruments | ' |
As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rates and foreign currency 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 and certain foreign exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company had no material exposures to default at September 30, 2014. | |
The Company uses regression analysis to assess effectiveness of interest-rate contracts on a quarterly basis. For foreign-exchange contracts, the Company performs quarterly assessments to ensure that critical terms continue to match. 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 currently in earnings. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||
Dilutive and Antidilutive Options | ' | ||||||||||||||||
The dilutive and antidilutive options are shown separately in the table below. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Additional shares | 1,112,000 | 994,000 | 1,124,000 | 907,000 | |||||||||||||
Antidilutive options | 655,000 | 783,000 | 664,000 | 873,000 |
Investments_in_Marketable_Debt1
Investments in Marketable Debt Securities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Marketable Debt Securities | ' | ||||||||||||||||
Marketable debt securities at September 30, 2014 and December 31, 2013 consisted of the following: | |||||||||||||||||
At September 30, 2014 | Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
U.S. tax-exempt securities | $ | 359 | $ | 1.3 | $ | 0.1 | $ | 360.2 | |||||||||
U.S. corporate securities | 61.1 | 0.3 | 61.4 | ||||||||||||||
U.S. government and agency securities | 5.4 | 5.4 | |||||||||||||||
Non-U.S. corporate securities | 589.2 | 4.1 | 593.3 | ||||||||||||||
Non-U.S. government securities | 186 | 1.7 | 0.2 | 187.5 | |||||||||||||
Other debt securities | 112.6 | 0.2 | 112.8 | ||||||||||||||
$ | 1,313.30 | $ | 7.6 | $ | 0.3 | $ | 1,320.60 | ||||||||||
At December 31, 2013 | Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
U.S. tax-exempt securities | $ | 214.9 | $ | 1.2 | $ | 216.1 | |||||||||||
U.S. corporate securities | 78.2 | 0.1 | $ | 0.1 | 78.2 | ||||||||||||
U.S. government and agency securities | 5.5 | 5.5 | |||||||||||||||
Non-U.S. corporate securities | 608.5 | 1.2 | 0.4 | 609.3 | |||||||||||||
Non-U.S. government securities | 217.3 | 0.7 | 0.5 | 217.5 | |||||||||||||
Other debt securities | 140.5 | 0.4 | 140.9 | ||||||||||||||
$ | 1,264.90 | $ | 3.6 | $ | 1 | $ | 1,267.50 | ||||||||||
Marketable Debt Securities Continuous Unrealized Losses | ' | ||||||||||||||||
Marketable debt securities with continuous unrealized losses and their related fair values were as follows: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
Less than | Twelve Months | Less than | Twelve Months | ||||||||||||||
Twelve Months | or Greater | Twelve Months | or Greater | ||||||||||||||
Fair value | $ | 163.2 | $ | 26.8 | $ | 388.3 | $ | 28.4 | |||||||||
Unrealized losses | 0.1 | 0.2 | 0.9 | 0.1 | |||||||||||||
Contractual Maturities of Debt Securities | ' | ||||||||||||||||
Contractual maturities on marketable debt securities at September 30, 2014 were as follows: | |||||||||||||||||
Maturities: | Amortized | Fair | |||||||||||||||
Cost | Value | ||||||||||||||||
Within one year | $ | 474.2 | $ | 474.8 | |||||||||||||
One to five years | 839 | 845.7 | |||||||||||||||
More than ten years | 0.1 | 0.1 | |||||||||||||||
$ | 1,313.30 | $ | 1,320.60 | ||||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories Table | ' | ||||||||
Inventories include the following: | |||||||||
September 30 | December 31 | ||||||||
2014 | 2013 | ||||||||
Finished products | $ | 589 | $ | 440.6 | |||||
Work in process and raw materials | 572.4 | 545.2 | |||||||
1,161.40 | 985.8 | ||||||||
Less LIFO reserve | (173.3 | ) | (172.2 | ) | |||||
$ | 988.1 | $ | 813.6 | ||||||
Finance_and_Other_Receivables_
Finance and Other Receivables (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||
Finance and Other Receivables | ' | ||||||||||||||||||||
Finance and other receivables include the following: | |||||||||||||||||||||
September 30 | December 31 | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Loans | $ | 3,944.10 | $ | 3,977.40 | |||||||||||||||||
Direct financing leases | 2,762.50 | 2,680.80 | |||||||||||||||||||
Sales-type finance leases | 905.2 | 921.1 | |||||||||||||||||||
Dealer wholesale financing | 1,643.00 | 1,616.50 | |||||||||||||||||||
Operating lease and other trade receivables | 103.3 | 121.3 | |||||||||||||||||||
Unearned interest: Finance leases | (377.6 | ) | (375.7 | ) | |||||||||||||||||
$ | 8,980.50 | $ | 8,941.40 | ||||||||||||||||||
Less allowance for losses: | |||||||||||||||||||||
Loans and leases | (109.8 | ) | (110.9 | ) | |||||||||||||||||
Dealer wholesale financing | (10.1 | ) | (10.4 | ) | |||||||||||||||||
Operating lease and other trade receivables | (8.0 | ) | (8.0 | ) | |||||||||||||||||
$ | 8,852.60 | $ | 8,812.10 | ||||||||||||||||||
Allowance for Credit Losses | ' | ||||||||||||||||||||
The allowance for credit losses is summarized as follows: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
Wholesale | Retail | Retail | Other* | Total | |||||||||||||||||
Balance at January 1 | $ | 10.4 | $ | 13.4 | $ | 97.5 | $ | 8 | $ | 129.3 | |||||||||||
Provision for losses | 0.2 | (.5 | ) | 11.5 | 1.3 | 12.5 | |||||||||||||||
Charge-offs | (11.4 | ) | (2.7 | ) | (14.1 | ) | |||||||||||||||
Recoveries | 3.3 | 0.6 | 3.9 | ||||||||||||||||||
Currency translation and other | (.5 | ) | (.1 | ) | (3.9 | ) | 0.8 | (3.7 | ) | ||||||||||||
Balance at September 30 | $ | 10.1 | $ | 12.8 | $ | 97 | $ | 8 | $ | 127.9 | |||||||||||
2013 | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
Wholesale | Retail | Retail | Other* | Total | |||||||||||||||||
Balance at January 1 | $ | 11.8 | $ | 13.4 | $ | 99.2 | $ | 5.6 | $ | 130 | |||||||||||
Provision for losses | (.7 | ) | (.7 | ) | 11.2 | 5.6 | 15.4 | ||||||||||||||
Charge-offs | (.2 | ) | (11.1 | ) | (6.7 | ) | (18.0 | ) | |||||||||||||
Recoveries | 4.2 | 1 | 5.2 | ||||||||||||||||||
Currency translation and other | (.1 | ) | (4.0 | ) | 3.2 | (.9 | ) | ||||||||||||||
Balance at September 30 | $ | 10.9 | $ | 12.6 | $ | 99.5 | $ | 8.7 | $ | 131.7 | |||||||||||
* | Operating lease and other trade receivables. | ||||||||||||||||||||
Finance Receivables Summary by those Evaluated Collectively and Individually | ' | ||||||||||||||||||||
Information regarding finance receivables evaluated and determined individually and collectively is as follows: | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
At September 30, 2014 | Wholesale | Retail | Retail | Total | |||||||||||||||||
Recorded investment for impaired finance | $ | 16 | $ | 59.5 | $ | 75.5 | |||||||||||||||
receivables evaluated individually | |||||||||||||||||||||
Allowance for impaired finance receivables | 1.1 | 6.1 | 7.2 | ||||||||||||||||||
determined individually | |||||||||||||||||||||
Recorded investment for finance receivables | 1,627.00 | $ | 1,512.8 | 5,661.90 | 8,801.70 | ||||||||||||||||
evaluated collectively | |||||||||||||||||||||
Allowance for finance receivables determined | 9 | 12.8 | 90.9 | 112.7 | |||||||||||||||||
collectively | |||||||||||||||||||||
Dealer | Customer | ||||||||||||||||||||
At December 31, 2013 | Wholesale | Retail | Retail | Total | |||||||||||||||||
Recorded investment for impaired finance | $ | 8.5 | $ | 42.1 | $ | 50.6 | |||||||||||||||
receivables evaluated individually | |||||||||||||||||||||
Allowance for impaired finance receivables | 1.4 | 5.9 | 7.3 | ||||||||||||||||||
determined individually | |||||||||||||||||||||
Recorded investment for finance receivables | 1,608.00 | $ | 1,525.60 | 5,635.90 | 8,769.50 | ||||||||||||||||
evaluated collectively | |||||||||||||||||||||
Allowance for finance receivables determined | 9 | 13.4 | 91.6 | 114 | |||||||||||||||||
collectively | |||||||||||||||||||||
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 | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Dealer: | |||||||||||||||||||||
Wholesale | $ | 14.8 | $ | 8 | |||||||||||||||||
Customer retail: | |||||||||||||||||||||
Fleet | 41.6 | 30.5 | |||||||||||||||||||
Owner/operator | 10.1 | 8.6 | |||||||||||||||||||
$ | 66.5 | $ | 47.1 | ||||||||||||||||||
Impaired Loans and Specific Reserve | ' | ||||||||||||||||||||
The recorded investment of impaired loans as of September 30, 2014 and December 31, 2013 was not significantly different than the unpaid principal balance. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At September 30, 2014 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Impaired loans with a specific reserve | $ | 3 | $ | 13.6 | $ | 2.8 | $ | 19.4 | |||||||||||||
Associated allowance | (1.1 | ) | (1.6 | ) | (.5 | ) | (3.2 | ) | |||||||||||||
Net carrying amount of impaired loans | $ | 1.9 | $ | 12 | $ | 2.3 | $ | 16.2 | |||||||||||||
Average recorded investment* | $ | 8.9 | $ | 21.6 | $ | 3.2 | $ | 33.7 | |||||||||||||
* Represents the average during the 12 months ended September 30, 2014. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2013 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Impaired loans with a specific reserve | $ | 8.5 | $ | 10.8 | $ | 3.1 | $ | 22.4 | |||||||||||||
Associated allowance | (1.4 | ) | (2.1 | ) | (.6 | ) | (4.1 | ) | |||||||||||||
Net carrying amount of impaired loans | $ | 7.1 | $ | 8.7 | $ | 2.5 | $ | 18.3 | |||||||||||||
Average recorded investment* | $ | 4.8 | $ | 31.4 | $ | 6 | $ | 42.2 | |||||||||||||
* | Represents the average during the 12 months ended September 30, 2013. | ||||||||||||||||||||
Interest Income Recognized on Cash Basis | ' | ||||||||||||||||||||
During the period the loans above were considered impaired, interest income recognized on a cash basis is as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Interest income recognized: | |||||||||||||||||||||
Dealer wholesale | $ | 0.1 | $ | 0.1 | |||||||||||||||||
Customer retail - fleet | $ | 0.3 | $ | 0.5 | 0.9 | 1.8 | |||||||||||||||
Customer retail - owner/operator | 0.1 | 0.3 | 0.4 | ||||||||||||||||||
$ | 0.4 | $ | 0.5 | $ | 1.3 | $ | 2.3 | ||||||||||||||
Finance Receivables by Credit Quality Indicator and Portfolio Class | ' | ||||||||||||||||||||
The tables below summarize the Company’s finance receivables by credit quality indicator and portfolio class. | |||||||||||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At September 30, 2014 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Performing | $ | 1,611.00 | $ | 1,511.30 | $ | 4,480.40 | $ | 1,158.90 | $ | 8,761.60 | |||||||||||
Watch | 16 | 1.5 | 14.4 | 8.2 | 40.1 | ||||||||||||||||
At-risk | 16 | 48.6 | 10.9 | 75.5 | |||||||||||||||||
$ | 1,643.00 | $ | 1,512.80 | $ | 4,543.40 | $ | 1,178.00 | $ | 8,877.20 | ||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2013 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Performing | $ | 1,576.90 | $ | 1,520.10 | $ | 4,396.50 | $ | 1,219.50 | $ | 8,713.00 | |||||||||||
Watch | 31.1 | 5.5 | 12.7 | 7.2 | 56.5 | ||||||||||||||||
At-risk | 8.5 | 33.3 | 8.8 | 50.6 | |||||||||||||||||
$ | 1,616.50 | $ | 1,525.60 | $ | 4,442.50 | $ | 1,235.50 | $ | 8,820.10 | ||||||||||||
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, 2014 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Current and up to 30 days past due | $ | 1,631.80 | $ | 1,512.80 | $ | 4,516.10 | $ | 1,161.70 | $ | 8,822.40 | |||||||||||
31 – 60 days past due | 6.2 | 16.4 | 7.7 | 30.3 | |||||||||||||||||
Greater than 60 days past due | 5 | 10.9 | 8.6 | 24.5 | |||||||||||||||||
$ | 1,643.00 | $ | 1,512.80 | $ | 4,543.40 | $ | 1,178.00 | $ | 8,877.20 | ||||||||||||
Dealer | Customer Retail | ||||||||||||||||||||
At December 31, 2013 | Wholesale | Retail | Fleet | Owner/ | Total | ||||||||||||||||
Operator | |||||||||||||||||||||
Current and up to 30 days past due | $ | 1,611.70 | $ | 1,525.60 | $ | 4,417.50 | $ | 1,221.40 | $ | 8,776.20 | |||||||||||
31 – 60 days past due | 1.7 | 9.2 | 6.3 | 17.2 | |||||||||||||||||
Greater than 60 days past due | 3.1 | 15.8 | 7.8 | 26.7 | |||||||||||||||||
$ | 1,616.50 | $ | 1,525.60 | $ | 4,442.50 | $ | 1,235.50 | $ | 8,820.10 | ||||||||||||
Pre- and Post-Modification Recorded Investment Balances by Portfolio Class | ' | ||||||||||||||||||||
At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Fleet | $ | 18.7 | $ | 18.5 | $ | 24.1 | $ | 23.9 | |||||||||||||
Owner/operator | 0.4 | 0.4 | 1.7 | 1.7 | |||||||||||||||||
$ | 19.1 | $ | 18.9 | $ | 25.8 | $ | 25.6 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||
Fleet | $ | 1.5 | $ | 1.3 | $ | 9.2 | $ | 8.9 | |||||||||||||
Owner/operator | 0.7 | 0.7 | 1.4 | 1.4 | |||||||||||||||||
$ | 2.2 | $ | 2 | $ | 10.6 | $ | 10.3 | ||||||||||||||
TDRs Modified that Subsequently Defaulted (i.e., Became More than 30 Days Past-Due) by Portfolio Class | ' | ||||||||||||||||||||
TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past due) during the period by portfolio class are as follows: | |||||||||||||||||||||
Nine Months Ended September 30, | 2014 | 2013 | |||||||||||||||||||
Fleet | $ | 1.6 | $ | 2.5 | |||||||||||||||||
Owner/operator | .9 | 0.2 | |||||||||||||||||||
$ | 2.5 | $ | 2.7 | ||||||||||||||||||
Product_Support_Liabilities_Ta
Product Support Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Changes in Product Support Liabilities | ' | ||||||||
Changes in product support liabilities are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Balance at January 1 | $ | 630.5 | $ | 540.7 | |||||
Cost accruals and revenue deferrals | 490 | 343.3 | |||||||
Payments and revenue recognized | (335.0 | ) | (300.7 | ) | |||||
Currency translation | (27.2 | ) | 4.6 | ||||||
Balance at September 30 | $ | 758.3 | $ | 587.9 | |||||
Revised Changes in Product Support Liabilities | ' | ||||||||
The table below presents “Cost accruals and revenue deferrals” and “Payments and revenue recognized” as previously reported in Note E and as revised: | |||||||||
Nine Months Ended | |||||||||
30-Sep-13 | |||||||||
Previously | Revised | ||||||||
Reported | |||||||||
Cost accruals and revenue deferrals | $ | 238 | $ | 343.3 | |||||
Payments and revenue recognized | (195.4 | ) | (300.7 | ) |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Components of Comprehensive Income, Net of Related Tax | ' | ||||||||||||||||||||
The components of comprehensive income are as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Net income | $ | 371.4 | $ | 309.4 | $ | 964.5 | $ | 837.1 | |||||||||||||
Other comprehensive income (OCI): | |||||||||||||||||||||
Unrealized gains (losses) on derivative contracts | 7.5 | (3.5 | ) | 7.9 | 9.8 | ||||||||||||||||
Tax effect | (2.6 | ) | 0.8 | (2.4 | ) | (3.3 | ) | ||||||||||||||
4.9 | (2.7 | ) | 5.5 | 6.5 | |||||||||||||||||
Unrealized gains (losses) on marketable debt securities | 1 | 0.1 | 4.7 | (5.7 | ) | ||||||||||||||||
Tax effect | (.1 | ) | (1.1 | ) | 1.6 | ||||||||||||||||
0.9 | 0.1 | 3.6 | (4.1 | ) | |||||||||||||||||
Pension plans | 14.5 | 2.5 | 22 | 36.8 | |||||||||||||||||
Tax effect | (4.4 | ) | (1.5 | ) | (7.0 | ) | (12.6 | ) | |||||||||||||
10.1 | 1 | 15 | 24.2 | ||||||||||||||||||
Foreign currency translation (losses) gains | (278.0 | ) | 120.4 | (231.4 | ) | (58.2 | ) | ||||||||||||||
Net other comprehensive (loss) income | (262.1 | ) | 118.8 | (207.3 | ) | (31.6 | ) | ||||||||||||||
Comprehensive income | $ | 109.3 | $ | 428.2 | $ | 757.2 | $ | 805.5 | |||||||||||||
Changes in Accumulated Other Comprehensive (Loss) Income by Component | ' | ||||||||||||||||||||
The components of AOCI as of September 30, 2014 and December 31, 2013 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following: | |||||||||||||||||||||
Derivative | Marketable Debt | Pension | Foreign | Total | |||||||||||||||||
Contracts | Securities | Plans | Currency | ||||||||||||||||||
Translation | |||||||||||||||||||||
Balance at December 31, 2013 | $ | (15.1 | ) | $ | 1.7 | $ | (262.2 | ) | $ | 284.3 | $ | 8.7 | |||||||||
Recorded into AOCI | (.2 | ) | 4.1 | 3.8 | (231.4 | ) | (223.7 | ) | |||||||||||||
Reclassified out of AOCI | 5.7 | (.5 | ) | 11.2 | 16.4 | ||||||||||||||||
Net other comprehensive income (loss) | 5.5 | 3.6 | 15 | (231.4 | ) | (207.3 | ) | ||||||||||||||
Balance at September 30, 2014 | $ | (9.6 | ) | $ | 5.3 | $ | (247.2 | ) | $ | 52.9 | $ | (198.6 | ) | ||||||||
The components of AOCI as of September 30, 2013 and December 31, 2012 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following: | |||||||||||||||||||||
Derivative | Marketable Debt | Pension | Foreign | Total | |||||||||||||||||
Contracts | Securities | Plans | Currency | ||||||||||||||||||
Translation | |||||||||||||||||||||
Balance at December 31, 2012 | $ | (27.2 | ) | $ | 6.6 | $ | (496.5 | ) | $ | 357.6 | $ | (159.5 | ) | ||||||||
Recorded into AOCI | 27.3 | (5.1 | ) | 2.1 | (56.2 | ) | (31.9 | ) | |||||||||||||
Reclassified out of AOCI | (20.8 | ) | 1 | 22.1 | (2.0 | ) | 0.3 | ||||||||||||||
Net other comprehensive income (loss) | 6.5 | (4.1 | ) | 24.2 | (58.2 | ) | (31.6 | ) | |||||||||||||
Balance at September 30, 2013 | $ | (20.7 | ) | $ | 2.5 | $ | (472.3 | ) | $ | 299.4 | $ | (191.1 | ) | ||||||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Reclassifications out of AOCI during the nine months ended September 30, 2014 are as follows: | |||||||||||||||||||||
AOCI Components | Line Item in the Consolidated Statements of Comprehensive Income | Amount | |||||||||||||||||||
Reclassified | |||||||||||||||||||||
Out of AOCI | |||||||||||||||||||||
Unrealized (gains) and losses on derivative contracts: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Foreign-exchange contracts | Cost of sales and revenues | $ | 1.7 | ||||||||||||||||||
Interest and other expense, net | 0.1 | ||||||||||||||||||||
Financial Services | |||||||||||||||||||||
Interest-rate contracts | Interest and other borrowing expenses | 8 | |||||||||||||||||||
Pre-tax expense increase | 9.8 | ||||||||||||||||||||
Tax benefit | (4.1 | ) | |||||||||||||||||||
After-tax expense increase | 5.7 | ||||||||||||||||||||
Unrealized (gains) and losses on marketable debt securities: | |||||||||||||||||||||
Marketable debt securities | Investment income | (.8 | ) | ||||||||||||||||||
Tax expense | 0.3 | ||||||||||||||||||||
After-tax income increase | (.5 | ) | |||||||||||||||||||
Pension plans: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Actuarial loss | Cost of sales and revenues $8.4, SG&A $6.5 | 14.9 | |||||||||||||||||||
Prior service costs | Cost of sales and revenues $.7, SG&A $.2 | 0.9 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Actuarial loss | SG&A | 0.8 | |||||||||||||||||||
Pre-tax expense increase | 16.6 | ||||||||||||||||||||
Tax benefit | (5.4 | ) | |||||||||||||||||||
After-tax expense increase | 11.2 | ||||||||||||||||||||
Total reclassifications out of AOCI | $ | 16.4 | |||||||||||||||||||
Reclassifications out of AOCI during the nine months ended September 30, 2013 are as follows: | |||||||||||||||||||||
AOCI Components | Line Item in the Consolidated Statements of Comprehensive Income | Amount | |||||||||||||||||||
Reclassified | |||||||||||||||||||||
Out of AOCI | |||||||||||||||||||||
Unrealized (gains) and losses on derivative contracts: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Foreign-exchange contracts | Cost of sales and revenues | $ | (.5 | ) | |||||||||||||||||
Interest and other expense, net | (.2 | ) | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Interest-rate contracts | Interest and other borrowing expenses | (29.1 | ) | ||||||||||||||||||
Pre-tax expense reduction | (29.8 | ) | |||||||||||||||||||
Tax expense | 9 | ||||||||||||||||||||
After-tax expense reduction | (20.8 | ) | |||||||||||||||||||
Unrealized (gains) and losses on marketable debt securities: | |||||||||||||||||||||
Marketable debt securities | Investment income | 1.4 | |||||||||||||||||||
Tax benefit | (.4 | ) | |||||||||||||||||||
After-tax income reduction | 1 | ||||||||||||||||||||
Pension plans: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Prior service costs | Cost of sales and revenues $.8, SG&A $.1 | 0.9 | |||||||||||||||||||
Actuarial loss | Cost of sales and revenues $17.4, SG&A $14.2 R&D $.1 | 31.7 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Actuarial loss | SG&A | 1.3 | |||||||||||||||||||
Pre-tax expense increase | 33.9 | ||||||||||||||||||||
Tax benefit | (11.8 | ) | |||||||||||||||||||
After-tax expense increase | 22.1 | ||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||
Truck, Parts and Other | Interest and other expense, net | (1.1 | ) | ||||||||||||||||||
Financial Services | Interest and other borrowing expenses | (.9 | ) | ||||||||||||||||||
Expense reduction | (2.0 | ) | |||||||||||||||||||
Total reclassifications out of AOCI | $ | 0.3 | |||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Information by Segment | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net sales and revenues: | |||||||||||||||||
Truck | $ | 4,000.10 | $ | 3,416.60 | $ | 11,168.10 | $ | 9,924.60 | |||||||||
Less intersegment | (189.5 | ) | (155.4 | ) | (573.3 | ) | (460.1 | ) | |||||||||
External customers | 3,810.60 | 3,261.20 | 10,594.80 | 9,464.50 | |||||||||||||
Parts | 797 | 726.2 | 2,324.30 | 2,126.00 | |||||||||||||
Less intersegment | (12.8 | ) | (10.9 | ) | (35.5 | ) | (33.8 | ) | |||||||||
External customers | 784.2 | 715.3 | 2,288.80 | 2,092.20 | |||||||||||||
Other | 27.7 | 30.1 | 92.1 | 92.8 | |||||||||||||
4,622.50 | 4,006.60 | 12,975.70 | 11,649.50 | ||||||||||||||
Financial Services | 305.9 | 293.5 | 902.2 | 875.4 | |||||||||||||
$ | 4,928.40 | $ | 4,300.10 | $ | 13,877.90 | $ | 12,524.90 | ||||||||||
Income (loss) before income taxes: | |||||||||||||||||
Truck | $ | 330 | $ | 242.5 | $ | 801.9 | $ | 645.9 | |||||||||
Parts | 127.9 | 106.5 | 366.7 | 311.2 | |||||||||||||
Other | (8.1 | ) | (4.5 | ) | (19.8 | ) | (18.6 | ) | |||||||||
449.8 | 344.5 | 1,148.80 | 938.5 | ||||||||||||||
Financial Services | 96.9 | 88.2 | 274.1 | 249.8 | |||||||||||||
Investment income | 5.7 | 7.3 | 17 | 21.8 | |||||||||||||
$ | 552.4 | $ | 440 | $ | 1,439.90 | $ | 1,210.10 | ||||||||||
Depreciation and amortization: | |||||||||||||||||
Truck | $ | 103.5 | $ | 89.2 | $ | 303.7 | $ | 250.9 | |||||||||
Parts | 1.5 | 1.2 | 4.2 | 3.9 | |||||||||||||
Other | 3.1 | 2.5 | 8.4 | 7.4 | |||||||||||||
108.1 | 92.9 | 316.3 | 262.2 | ||||||||||||||
Financial Services | 122 | 113.5 | 361.3 | 326.5 | |||||||||||||
$ | 230.1 | $ | 206.4 | $ | 677.6 | $ | 588.7 | ||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Balance Sheet Classifications, Fair Value, Gross and Pro-Forma Net Amounts of Derivative Financial Instruments | ' | ||||||||||||||||
The following table presents the balance sheet classification, fair value, gross and pro-forma net amounts of derivative financial instruments: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||
Derivatives designated under hedge accounting: | |||||||||||||||||
Interest-rate contracts: | |||||||||||||||||
Financial Services: | |||||||||||||||||
Other assets | $ | 54.5 | $ | 46.3 | |||||||||||||
Deferred taxes and other liabilities | $ | 48.2 | $ | 67.7 | |||||||||||||
Foreign-exchange contracts: | |||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Other current assets | 1.7 | ||||||||||||||||
Accounts payable, accrued expenses and other | 0.6 | 0.6 | |||||||||||||||
Total | $ | 56.2 | $ | 48.8 | $ | 46.3 | $ | 68.3 | |||||||||
Economic hedges: | |||||||||||||||||
Interest-rate contracts: | |||||||||||||||||
Financial Services: | |||||||||||||||||
Deferred taxes and other liabilities | $ | 0.2 | |||||||||||||||
Foreign-exchange contracts: | |||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Other current assets | $ | 0.7 | $ | 0.6 | |||||||||||||
Accounts payable, accrued expenses and other | 0.5 | $ | 0.2 | ||||||||||||||
Financial Services: | |||||||||||||||||
Other assets | 7.3 | 1.1 | |||||||||||||||
Deferred taxes and other liabilities | 0.1 | 0.1 | |||||||||||||||
Total | $ | 8 | $ | 0.8 | $ | 1.7 | $ | 0.3 | |||||||||
Gross amounts recognized in Balance Sheet | $ | 64.2 | $ | 49.6 | $ | 48 | $ | 68.6 | |||||||||
Less amounts not offset in financial instruments: | |||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Foreign-exchange contracts | (.1 | ) | (.1 | ) | (.2 | ) | (.2 | ) | |||||||||
Financial Services: | |||||||||||||||||
Interest-rate contracts | (3.5 | ) | (3.5 | ) | (16.1 | ) | (16.1 | ) | |||||||||
Pro-forma net amount | $ | 60.6 | $ | 46 | $ | 31.7 | $ | 52.3 | |||||||||
Cash Flow Hedging | ' | ||||||||||||||||
Gains/Losses of Derivative Financial Instruments | ' | ||||||||||||||||
The following table presents the pre-tax effects of derivative instruments recognized in OCI: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Gain (loss) recognized in OCI: | |||||||||||||||||
Truck, Parts and Other | $ | 2.5 | $ | (.3 | ) | ||||||||||||
Financial Services | $ | 28.7 | $ | (1.6 | ) | ||||||||||||
$ | 28.7 | $ | 2.5 | $ | (1.6 | ) | $ | (.3 | ) | ||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
(Loss) gain recognized in OCI: | |||||||||||||||||
Truck, Parts and Other | $ | (4.6 | ) | $ | (1.7 | ) | |||||||||||
Financial Services | $ | (33.1 | ) | $ | 41.3 | ||||||||||||
$ | (33.1 | ) | $ | (4.6 | ) | $ | 41.3 | $ | (1.7 | ) | |||||||
Expense (income) reclassified out of AOCI into income: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Cost of sales and revenues | $ | (.1 | ) | $ | 1.7 | ||||||||||||
Interest and other expense, net | 0.1 | ||||||||||||||||
Financial Services: | |||||||||||||||||
Interest and other borrowing expenses | $ | (23.6 | ) | $ | 8 | ||||||||||||
$ | (23.6 | ) | $ | (.1 | ) | $ | 8 | $ | 1.8 | ||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Cost of sales and revenues | $ | 1.8 | $ | (.5 | ) | ||||||||||||
Interest and other expense, net | (.5 | ) | (.2 | ) | |||||||||||||
Financial Services: | |||||||||||||||||
Interest and other borrowing expenses | $ | 32.8 | $ | (29.1 | ) | ||||||||||||
$ | 32.8 | $ | 1.3 | $ | (29.1 | ) | $ | (.7 | ) | ||||||||
Economic Hedges | ' | ||||||||||||||||
Gains/Losses of Derivative Financial Instruments | ' | ||||||||||||||||
The expense (income) recognized in earnings related to economic hedges is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Cost of sales and revenues | $ | (3.8 | ) | $ | (4.0 | ) | |||||||||||
Interest and other expense, net | 1.9 | 2.2 | |||||||||||||||
Financial Services: | |||||||||||||||||
Interest and other borrowing expenses | $ | (.3 | ) | (7.8 | ) | (3.1 | ) | ||||||||||
$ | (.3 | ) | $ | (9.7 | ) | $ | (4.9 | ) | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||
Interest- | Foreign- | Interest- | Foreign- | ||||||||||||||
Rate | Exchange | Rate | Exchange | ||||||||||||||
Contracts | Contracts | Contracts | Contracts | ||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Cost of sales and revenues | $ | (1.3 | ) | $ | (.9 | ) | |||||||||||
Interest and other expense, net | 0.4 | 0.8 | |||||||||||||||
Financial Services: | |||||||||||||||||
Interest and other borrowing expenses | $ | (.1 | ) | (4.3 | ) | $ | (1.5 | ) | (8.9 | ) | |||||||
$ | (.1 | ) | $ | (5.2 | ) | $ | (1.5 | ) | $ | (9.0 | ) | ||||||
Financial Services | Fair Value Hedging | ' | ||||||||||||||||
Gains/Losses of Derivative Financial Instruments | ' | ||||||||||||||||
The (income) or expense recognized in earnings related to fair value hedges was included in interest and other borrowing expenses in the Financial Services segment of the Consolidated Statements of Comprehensive Income as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest-rate swaps | $ | 0.6 | $ | 0.2 | $ | 0.1 | $ | 0.6 | |||||||||
Term notes | (1.0 | ) | (1.2 | ) | (2.2 | ) | (3.9 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Financial Assets and Liabilities Subject to Recurring Fair Value Measurements | ' | ||||||||||||||||
The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows: | |||||||||||||||||
At September 30, 2014 | Level 1 | Level 2 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Marketable debt securities | |||||||||||||||||
U.S. tax-exempt securities | $ | 360.2 | $ | 360.2 | |||||||||||||
U.S. corporate securities | 61.4 | 61.4 | |||||||||||||||
U.S. government and agency securities | $ | 5.2 | 0.2 | 5.4 | |||||||||||||
Non-U.S. corporate securities | 593.3 | 593.3 | |||||||||||||||
Non-U.S. government securities | 187.5 | 187.5 | |||||||||||||||
Other debt securities | 112.8 | 112.8 | |||||||||||||||
Total marketable debt securities | $ | 5.2 | $ | 1,315.40 | $ | 1,320.60 | |||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 49.8 | $ | 49.8 | |||||||||||||
Interest-rate swaps | 4.7 | 4.7 | |||||||||||||||
Foreign-exchange contracts | 9.7 | 9.7 | |||||||||||||||
Total derivative assets | $ | 64.2 | $ | 64.2 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 30.7 | $ | 30.7 | |||||||||||||
Interest-rate swaps | 17.7 | 17.7 | |||||||||||||||
Foreign-exchange contracts | 1.2 | 1.2 | |||||||||||||||
Total derivative liabilities | $ | 49.6 | $ | 49.6 | |||||||||||||
At December 31, 2013 | Level 1 | Level 2 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Marketable debt securities | |||||||||||||||||
U.S. tax-exempt securities | $ | 216.1 | $ | 216.1 | |||||||||||||
U.S. corporate securities | 78.2 | 78.2 | |||||||||||||||
U.S. government and agency securities | $ | 5.2 | 0.3 | 5.5 | |||||||||||||
Non-U.S. corporate securities | 609.3 | 609.3 | |||||||||||||||
Non-U.S. government securities | 217.5 | 217.5 | |||||||||||||||
Other debt securities | 140.9 | 140.9 | |||||||||||||||
Total marketable debt securities | $ | 5.2 | $ | 1,262.30 | $ | 1,267.50 | |||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 40.9 | $ | 40.9 | |||||||||||||
Interest-rate swaps | 5.4 | 5.4 | |||||||||||||||
Foreign-exchange contracts | 1.7 | 1.7 | |||||||||||||||
Total derivative assets | $ | 48 | $ | 48 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 42.1 | $ | 42.1 | |||||||||||||
Interest-rate swaps | 25.6 | 25.6 | |||||||||||||||
Foreign-exchange contracts | 0.9 | 0.9 | |||||||||||||||
Total derivative liabilities | $ | 68.6 | $ | 68.6 | |||||||||||||
Carrying Amount and Fair Value of Financial Services 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, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Assets: | |||||||||||||||||
Financial Services fixed rate loans | $ | 3,600.30 | $ | 3,646.10 | $ | 3,592.70 | $ | 3,627.30 | |||||||||
Liabilities: | |||||||||||||||||
Truck, Parts and Other fixed rate debt | 150 | 151.1 | |||||||||||||||
Financial Services fixed rate debt | 3,433.90 | 3,453.90 | 4,039.10 | 4,087.00 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Pension Expense | ' | ||||||||||||||||
The following information details the components of net pension expense for the Company’s defined benefit plans: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 17 | $ | 18.3 | $ | 51 | $ | 55 | |||||||||
Interest on projected benefit obligation | 23 | 20.2 | 69.1 | 60.6 | |||||||||||||
Expected return on assets | (32.1 | ) | (29.8 | ) | (96.3 | ) | (89.4 | ) | |||||||||
Amortization of prior service costs | 0.3 | 0.3 | 0.9 | 0.9 | |||||||||||||
Recognized actuarial loss | 5.3 | 11 | 15.7 | 33 | |||||||||||||
Net pension expense | $ | 13.5 | $ | 20 | $ | 40.4 | $ | 60.1 | |||||||||
Dilutive_and_Antidilutive_Opti
Dilutive and Antidilutive Options (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Additional shares | 1,112,000 | 994,000 | 1,124,000 | 907,000 |
Antidilutive options | 655,000 | 783,000 | 664,000 | 873,000 |
Marketable_Debt_Securities_Det
Marketable Debt Securities (Detail) (Truck, Parts and Other, USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | $1,313.30 | $1,264.90 | |
Unrealized Gains | 7.6 | 3.6 | |
Unrealized Losses | 0.3 | 1 | |
Fair Value | 1,320.60 | 1,267.50 | [1] |
U.S. tax-exempt securities | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 359 | 214.9 | |
Unrealized Gains | 1.3 | 1.2 | |
Unrealized Losses | 0.1 | ' | |
Fair Value | 360.2 | 216.1 | |
U.S. corporate securities | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 61.1 | 78.2 | |
Unrealized Gains | 0.3 | 0.1 | |
Unrealized Losses | ' | 0.1 | |
Fair Value | 61.4 | 78.2 | |
U.S. government and agency securities | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 5.4 | 5.5 | |
Fair Value | 5.4 | 5.5 | |
Non-U.S. corporate securities | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 589.2 | 608.5 | |
Unrealized Gains | 4.1 | 1.2 | |
Unrealized Losses | ' | 0.4 | |
Fair Value | 593.3 | 609.3 | |
Non-U.S. government securities | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 186 | 217.3 | |
Unrealized Gains | 1.7 | 0.7 | |
Unrealized Losses | 0.2 | 0.5 | |
Fair Value | 187.5 | 217.5 | |
Other debt securities | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 112.6 | 140.5 | |
Unrealized Gains | 0.2 | 0.4 | |
Fair Value | $112.80 | $140.90 | |
[1] | The December 31, 2013 consolidated balance sheet has been derived from audited financial statements. |
Investments_in_Marketable_Debt2
Investments in Marketable Debt Securities - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ' | ' |
Gross realized gains from sales of marketable securities | $0.90 | $1.70 |
Gross realized loss from sales of marketable securities | $0.10 | $0.50 |
Marketable_Debt_Securities_Con
Marketable Debt Securities Continuous Unrealized Losses (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' |
Less than 12 Months Fair Value | $163.20 | $388.30 |
Less than 12 Months Unrealized Losses | 0.1 | 0.9 |
12 Months or Greater Fair value | 26.8 | 28.4 |
12 Months or Greater Unrealized losses | $0.20 | $0.10 |
Contractual_Maturities_of_Mark
Contractual Maturities of Marketable Debt Securities (Detail) (Truck, Parts and Other, USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Truck, Parts and Other | ' | ' | |
Amortized Cost Maturities: | ' | ' | |
Within one year | $474.20 | ' | |
One to five years | 839 | ' | |
More than ten years | 0.1 | ' | |
Amortized Cost | 1,313.30 | 1,264.90 | |
Fair Value Maturities: | ' | ' | |
Within one year | 474.8 | ' | |
One to five years | 845.7 | ' | |
More than ten years | 0.1 | ' | |
Fair Value | $1,320.60 | $1,267.50 | [1] |
[1] | The December 31, 2013 consolidated balance sheet has been derived from audited financial statements. |
Inventories_Table_Detail
Inventories Table (Detail) (Truck, Parts and Other, USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Truck, Parts and Other | ' | ' | |
Inventory [Line Items] | ' | ' | |
Finished products | $589 | $440.60 | |
Work in process and raw materials | 572.4 | 545.2 | |
Inventory, Gross, Total | 1,161.40 | 985.8 | |
Less LIFO reserve | -173.3 | -172.2 | |
Inventories, net | $988.10 | $813.60 | [1] |
[1] | The December 31, 2013 consolidated balance sheet has been derived from audited financial statements. |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) | Sep. 30, 2014 |
Inventory Disclosure [Abstract] | ' |
Percentage of inventories valued using LIFO method of accounting | 42.00% |
Finance_and_Other_Receivables_1
Finance and Other Receivables (Detail) (Financial Services, USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Loans | $3,944.10 | $3,977.40 | ' | ' | |
Direct financing leases | 2,762.50 | 2,680.80 | ' | ' | |
Sales-type finance leases | 905.2 | 921.1 | ' | ' | |
Dealer wholesale financing | 1,643 | 1,616.50 | ' | ' | |
Operating lease and other trade receivables | 103.3 | 121.3 | ' | ' | |
Unearned interest: Finance leases | -377.6 | -375.7 | ' | ' | |
Loans and Leases Receivable, Net of Deferred Income, Total | 8,980.50 | 8,941.40 | ' | ' | |
Less allowance for losses | -127.9 | -129.3 | -131.7 | -130 | |
Finance and other receivables, net | 8,852.60 | 8,812.10 | [1] | ' | ' |
Loans and leases | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Less allowance for losses | -109.8 | -110.9 | ' | ' | |
Dealer | Wholesale | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Less allowance for losses | -10.1 | -10.4 | -10.9 | -11.8 | |
Operating lease and other trade receivables | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Less allowance for losses | ($8) | ($8) | ' | ' | |
[1] | The December 31, 2013 consolidated balance sheet has been derived from audited financial statements. |
Finance_and_Other_Receivables_2
Finance and Other Receivables - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Financing Receivable | Financial Services | Financial Services | Financial Services | Financial Services | ||||
Minimum | Maximum | |||||||
Loans Receivable | Loans Receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Modifications extended contractual terms | ' | ' | ' | ' | '4 months | '6 months | ' | ' |
Receivable, collection period | ' | ' | ' | ' | ' | ' | '36 months | '60 months |
Impaired Loans | $28.30 | ' | $10.70 | ' | ' | ' | ' | ' |
Percentage of portfolio | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Loans accounted for as troubled debt restructurings | ' | ' | ' | ' | 41.4 | 27.6 | ' | ' |
Repossessed inventory | 18.4 | ' | 13.7 | ' | ' | ' | ' | ' |
Proceeds from the sales of repossessed assets | $44.30 | $44.50 | ' | ' | ' | ' | ' | ' |
Allowance_for_Credit_Losses_De
Allowance for Credit Losses (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||||
Provision for losses | ' | ' | $12.50 | $15.40 | ||||
Financial Services | ' | ' | ' | ' | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 129.3 | 130 | ||||
Provision for losses | 4.8 | 3.6 | 12.5 | 15.4 | ||||
Charge-offs | ' | ' | -14.1 | -18 | ||||
Recoveries | ' | ' | 3.9 | 5.2 | ||||
Currency translation and other | ' | ' | -3.7 | -0.9 | ||||
Ending Balance | 127.9 | 131.7 | 127.9 | 131.7 | ||||
Financial Services | Dealer | Wholesale | ' | ' | ' | ' | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 10.4 | 11.8 | ||||
Provision for losses | ' | ' | 0.2 | -0.7 | ||||
Charge-offs | ' | ' | ' | -0.2 | ||||
Currency translation and other | ' | ' | -0.5 | ' | ||||
Ending Balance | 10.1 | 10.9 | 10.1 | 10.9 | ||||
Financial Services | Dealer | Retail | ' | ' | ' | ' | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 13.4 | 13.4 | ||||
Provision for losses | ' | ' | -0.5 | -0.7 | ||||
Currency translation and other | ' | ' | -0.1 | -0.1 | ||||
Ending Balance | 12.8 | 12.6 | 12.8 | 12.6 | ||||
Financial Services | Customer Retail | ' | ' | ' | ' | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 97.5 | 99.2 | ||||
Provision for losses | ' | ' | 11.5 | 11.2 | ||||
Charge-offs | ' | ' | -11.4 | -11.1 | ||||
Recoveries | ' | ' | 3.3 | 4.2 | ||||
Currency translation and other | ' | ' | -3.9 | -4 | ||||
Ending Balance | 97 | 99.5 | 97 | 99.5 | ||||
Financial Services | Other | ' | ' | ' | ' | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ||||
Beginning Balance | ' | ' | 8 | [1] | 5.6 | [1] | ||
Provision for losses | ' | ' | 1.3 | [1] | 5.6 | [1] | ||
Charge-offs | ' | ' | -2.7 | [1] | -6.7 | [1] | ||
Recoveries | ' | ' | 0.6 | [1] | 1 | [1] | ||
Currency translation and other | ' | ' | 0.8 | [1] | 3.2 | [1] | ||
Ending Balance | $8 | [1] | $8.70 | [1] | $8 | [1] | $8.70 | [1] |
[1] | Operating lease and other trade receivables. |
Finance_Receivables_Summary_by
Finance Receivables Summary by those Evaluated Collectively and Individually (Detail) (Financial Services, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment for impaired finance receivables evaluated individually | $75.50 | $50.60 |
Allowance for impaired finance receivables determined individually | 7.2 | 7.3 |
Recorded investment for finance receivables evaluated collectively | 8,801.70 | 8,769.50 |
Allowance for finance receivables determined collectively | 112.7 | 114 |
Dealer | Wholesale | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment for impaired finance receivables evaluated individually | 16 | 8.5 |
Allowance for impaired finance receivables determined individually | 1.1 | 1.4 |
Recorded investment for finance receivables evaluated collectively | 1,627 | 1,608 |
Allowance for finance receivables determined collectively | 9 | 9 |
Dealer | Retail | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment for finance receivables evaluated collectively | 1,512.80 | 1,525.60 |
Allowance for finance receivables determined collectively | 12.8 | 13.4 |
Customer Retail | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded investment for impaired finance receivables evaluated individually | 59.5 | 42.1 |
Allowance for impaired finance receivables determined individually | 6.1 | 5.9 |
Recorded investment for finance receivables evaluated collectively | 5,661.90 | 5,635.90 |
Allowance for finance receivables determined collectively | $90.90 | $91.60 |
Recorded_Investment_for_Financ
Recorded Investment for Finance Receivables that are on Non-accrual Status (Detail) (Financial Services, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment of finance receivables that are on non-accrual status | $66.50 | $47.10 |
Dealer | Wholesale | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment of finance receivables that are on non-accrual status | 14.8 | 8 |
Customer Retail | Fleet | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment of finance receivables that are on non-accrual status | 41.6 | 30.5 |
Customer Retail | Owner/Operator | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Recorded investment of finance receivables that are on non-accrual status | $10.10 | $8.60 |
Summary_of_Impaired_Loans_and_
Summary of Impaired Loans and Specific Reserve (Detail) (Financial Services, USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ||
Impaired loans with a specific reserve | $19.40 | $22.40 | ||
Associated allowance | -3.2 | -4.1 | ||
Net carrying amount of impaired loans | 16.2 | 18.3 | ||
Average recorded investment | 33.7 | [1] | 42.2 | [2] |
Dealer | Wholesale | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ||
Impaired loans with a specific reserve | 3 | 8.5 | ||
Associated allowance | -1.1 | -1.4 | ||
Net carrying amount of impaired loans | 1.9 | 7.1 | ||
Average recorded investment | 8.9 | [1] | 4.8 | [2] |
Customer Retail | Fleet | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ||
Impaired loans with a specific reserve | 13.6 | 10.8 | ||
Associated allowance | -1.6 | -2.1 | ||
Net carrying amount of impaired loans | 12 | 8.7 | ||
Average recorded investment | 21.6 | [1] | 31.4 | [2] |
Customer Retail | Owner/Operator | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ||
Impaired loans with a specific reserve | 2.8 | 3.1 | ||
Associated allowance | -0.5 | -0.6 | ||
Net carrying amount of impaired loans | 2.3 | 2.5 | ||
Average recorded investment | $3.20 | [1] | $6 | [2] |
[1] | Represents the average during the 12 months ended September 30, 2014. | |||
[2] | Represents the average during the 12 months ended September 30, 2013. |
Summary_of_Impaired_Loans_and_1
Summary of Impaired Loans and Specific Reserve (Cash Basis Method) (Detail) (Financial Services, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest income recognized: | ' | ' | ' | ' |
Interest income recognized on a cash basis | $0.40 | $0.50 | $1.30 | $2.30 |
Dealer | Wholesale | ' | ' | ' | ' |
Interest income recognized: | ' | ' | ' | ' |
Interest income recognized on a cash basis | ' | ' | 0.1 | 0.1 |
Customer Retail | Fleet | ' | ' | ' | ' |
Interest income recognized: | ' | ' | ' | ' |
Interest income recognized on a cash basis | 0.3 | 0.5 | 0.9 | 1.8 |
Customer Retail | Owner/Operator | ' | ' | ' | ' |
Interest income recognized: | ' | ' | ' | ' |
Interest income recognized on a cash basis | $0.10 | ' | $0.30 | $0.40 |
Finance_Receivables_by_Credit_
Finance Receivables by Credit Quality Indicator and Portfolio Class (Detail) (Financial Services, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | $8,877.20 | $8,820.10 |
Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 8,761.60 | 8,713 |
Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 40.1 | 56.5 |
Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 75.5 | 50.6 |
Dealer | Wholesale | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1,643 | 1,616.50 |
Dealer | Wholesale | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1,611 | 1,576.90 |
Dealer | Wholesale | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 16 | 31.1 |
Dealer | Wholesale | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 16 | 8.5 |
Dealer | Retail | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1,512.80 | 1,525.60 |
Dealer | Retail | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1,511.30 | 1,520.10 |
Dealer | Retail | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1.5 | 5.5 |
Customer Retail | Fleet | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 4,543.40 | 4,442.50 |
Customer Retail | Fleet | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 4,480.40 | 4,396.50 |
Customer Retail | Fleet | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 14.4 | 12.7 |
Customer Retail | Fleet | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 48.6 | 33.3 |
Customer Retail | Owner/Operator | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1,178 | 1,235.50 |
Customer Retail | Owner/Operator | Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 1,158.90 | 1,219.50 |
Customer Retail | Owner/Operator | Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | 8.2 | 7.2 |
Customer Retail | Owner/Operator | Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financing Receivables | $10.90 | $8.80 |
Financing_Receivables_by_Aging
Financing Receivables by Aging Category (Detail) (Financial Services, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past due | $8,822.40 | $8,776.20 |
31 - 60 days past due | 30.3 | 17.2 |
Greater than 60 days past due | 24.5 | 26.7 |
Financing Receivables | 8,877.20 | 8,820.10 |
Dealer | Wholesale | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past due | 1,631.80 | 1,611.70 |
31 - 60 days past due | 6.2 | 1.7 |
Greater than 60 days past due | 5 | 3.1 |
Financing Receivables | 1,643 | 1,616.50 |
Dealer | Retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past due | 1,512.80 | 1,525.60 |
Financing Receivables | 1,512.80 | 1,525.60 |
Customer Retail | Fleet | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past due | 4,516.10 | 4,417.50 |
31 - 60 days past due | 16.4 | 9.2 |
Greater than 60 days past due | 10.9 | 15.8 |
Financing Receivables | 4,543.40 | 4,442.50 |
Customer Retail | Owner/Operator | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current and up to 30 days past due | 1,161.70 | 1,221.40 |
31 - 60 days past due | 7.7 | 6.3 |
Greater than 60 days past due | 8.6 | 7.8 |
Financing Receivables | $1,178 | $1,235.50 |
Pre_and_PostModification_Recor
Pre- and Post-Modification Recorded Investment Balances for Finance Receivables Modified by Portfolio Class (Detail) (Financial Services, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Investment | $19.10 | $2.20 | $25.80 | $10.60 |
Post-Modification Recorded Investment | 18.9 | 2 | 25.6 | 10.3 |
Customer Retail | Fleet | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Investment | 18.7 | 1.5 | 24.1 | 9.2 |
Post-Modification Recorded Investment | 18.5 | 1.3 | 23.9 | 8.9 |
Customer Retail | Owner/Operator | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Investment | 0.4 | 0.7 | 1.7 | 1.4 |
Post-Modification Recorded Investment | $0.40 | $0.70 | $1.70 | $1.40 |
TDRs_Modified_During_Previous_
TDRs Modified During Previous Twelve Months that Subsequently Defaulted (Detail) (Financial Services, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ' | ' |
Recorded Investment, subsequently defaulted | $2.50 | $2.70 |
Customer Retail | Fleet | ' | ' |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ' | ' |
Recorded Investment, subsequently defaulted | 1.6 | 2.5 |
Customer Retail | Owner/Operator | ' | ' |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ' | ' |
Recorded Investment, subsequently defaulted | $0.90 | $0.20 |
Product_Support_Liabilities_Ad
Product Support Liabilities - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Minimum | ' |
Product Liability Contingency [Line Items] | ' |
Warranty period | '1 year |
Maximum | ' |
Product Liability Contingency [Line Items] | ' |
Warranty period | '5 years |
Engine | ' |
Product Liability Contingency [Line Items] | ' |
Warranty period | '2 years |
Changes_in_Product_Support_Lia
Changes in Product Support Liabilities (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Product Warranties Disclosures [Abstract] | ' | ' |
Beginning balance | $630.50 | $540.70 |
Cost accruals and revenue deferrals | 490 | 343.3 |
Payments and revenue recognized | -335 | -300.7 |
Currency translation | -27.2 | 4.6 |
Ending balance | $758.30 | $587.90 |
Revised_Changes_in_Product_Sup
Revised Changes in Product Support Liabilities (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule Of Product Warranty Liability [Line Items] | ' | ' |
Cost accruals and revenue deferrals | $490 | $343.30 |
Payments and revenue recognized | -335 | -300.7 |
Previously Reported | ' | ' |
Schedule Of Product Warranty Liability [Line Items] | ' | ' |
Cost accruals and revenue deferrals | ' | 238 |
Payments and revenue recognized | ' | -195.4 |
Revised | ' | ' |
Schedule Of Product Warranty Liability [Line Items] | ' | ' |
Cost accruals and revenue deferrals | ' | 343.3 |
Payments and revenue recognized | ' | ($300.70) |
Components_of_Comprehensive_In
Components of Comprehensive Income, Net of Related Tax (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Equity [Abstract] | ' | ' | ' | ' |
Net income | $371.40 | $309.40 | $964.50 | $837.10 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Unrealized gains (losses) on derivative contracts, before tax | 7.5 | -3.5 | 7.9 | 9.8 |
Unrealized (losses) gains on derivative contracts, tax | -2.6 | 0.8 | -2.4 | -3.3 |
Unrealized (losses) gains on derivative contracts, net of tax | 4.9 | -2.7 | 5.5 | 6.5 |
Unrealized gains (losses) on marketable debt securities, before tax | 1 | 0.1 | 4.7 | -5.7 |
Unrealized gains (losses) on marketable debt securities, tax | -0.1 | ' | -1.1 | 1.6 |
Unrealized gains (losses) on marketable debt securities, net of tax | 0.9 | 0.1 | 3.6 | -4.1 |
Pension plans, before tax | 14.5 | 2.5 | 22 | 36.8 |
Pension plans, tax | -4.4 | -1.5 | -7 | -12.6 |
Pension plans, net of tax | 10.1 | 1 | 15 | 24.2 |
Foreign currency translation (losses) gains | -278 | 120.4 | -231.4 | -58.2 |
Net other comprehensive income (loss) | -262.1 | 118.8 | -207.3 | -31.6 |
Comprehensive income | $109.30 | $428.20 | $757.20 | $805.50 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Beginning balance | ' | ' | $8.70 | [1] | ($159.50) |
Recorded into AOCI | ' | ' | -223.7 | -31.9 | |
Reclassified out of AOCI | ' | ' | 16.4 | 0.3 | |
Net other comprehensive income (loss) | -262.1 | 118.8 | -207.3 | -31.6 | |
Ending balance | -198.6 | -191.1 | -198.6 | -191.1 | |
Derivative Contracts | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Beginning balance | ' | ' | -15.1 | -27.2 | |
Recorded into AOCI | ' | ' | -0.2 | 27.3 | |
Reclassified out of AOCI | ' | ' | 5.7 | -20.8 | |
Net other comprehensive income (loss) | ' | ' | 5.5 | 6.5 | |
Ending balance | -9.6 | -20.7 | -9.6 | -20.7 | |
Marketable Debt Securities | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Beginning balance | ' | ' | 1.7 | 6.6 | |
Recorded into AOCI | ' | ' | 4.1 | -5.1 | |
Reclassified out of AOCI | ' | ' | -0.5 | 1 | |
Net other comprehensive income (loss) | ' | ' | 3.6 | -4.1 | |
Ending balance | 5.3 | 2.5 | 5.3 | 2.5 | |
Pension Plan | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Beginning balance | ' | ' | -262.2 | -496.5 | |
Recorded into AOCI | ' | ' | 3.8 | 2.1 | |
Reclassified out of AOCI | ' | ' | 11.2 | 22.1 | |
Net other comprehensive income (loss) | ' | ' | 15 | 24.2 | |
Ending balance | -247.2 | -472.3 | -247.2 | -472.3 | |
Foreign Currency Translation | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Beginning balance | ' | ' | 284.3 | 357.6 | |
Recorded into AOCI | ' | ' | -231.4 | -56.2 | |
Reclassified out of AOCI | ' | ' | ' | -2 | |
Net other comprehensive income (loss) | ' | ' | -231.4 | -58.2 | |
Ending balance | $52.90 | $299.40 | $52.90 | $299.40 | |
[1] | The December 31, 2013 consolidated balance sheet has been derived from audited financial statements. |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Unrealized (gains) and losses on derivative contracts, pre-tax | $9.80 | ($29.80) |
Unrealized (gains) and losses on derivative contracts, tax | -4.1 | 9 |
Unrealized (gains) and losses on derivative contracts, after-tax | 5.7 | -20.8 |
Unrealized (gains) and losses on marketable debt securities, pre-tax | -0.8 | 1.4 |
Unrealized (gains) and losses on marketable debt securities, tax | 0.3 | -0.4 |
Unrealized (gains) and losses on marketable debt securities, after tax | -0.5 | 1 |
Pension plans, pre- tax | 16.6 | 33.9 |
Pension plans, tax | -5.4 | -11.8 |
Pension plans, after tax | 11.2 | 22.1 |
Foreign currency translation, after tax | ' | -2 |
Total reclassifications out of AOCI | 16.4 | 0.3 |
Truck, Parts and Other | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension plans, Actuarial loss, pre- tax | 14.9 | 31.7 |
Pension plans, Prior service costs, pre-tax | 0.9 | 0.9 |
Foreign currency translation, after tax | ' | -1.1 |
Truck, Parts and Other | Cost of sales and revenues | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension plans, Actuarial loss, pre- tax | 8.4 | 17.4 |
Pension plans, Prior service costs, pre-tax | 0.7 | 0.8 |
Truck, Parts and Other | SG&A | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension plans, Actuarial loss, pre- tax | 6.5 | 14.2 |
Pension plans, Prior service costs, pre-tax | 0.2 | 0.1 |
Truck, Parts and Other | Foreign-exchange contracts | Cost of sales and revenues | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Unrealized (gains) and losses on derivative contracts, pre-tax | 1.7 | -0.5 |
Truck, Parts and Other | Foreign-exchange contracts | Interest and other expense, net | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Unrealized (gains) and losses on derivative contracts, pre-tax | 0.1 | -0.2 |
Financial Services | Interest Expense and Other | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Foreign currency translation, after tax | ' | -0.9 |
Financial Services | SG&A | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension plans, Actuarial loss, pre- tax | 0.8 | 1.3 |
Financial Services | Interest Rate Contract | Interest Expense and Other | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Unrealized (gains) and losses on derivative contracts, pre-tax | $8 | ($29.10) |
Reclassifications_Out_of_Accum1
Reclassifications Out of Accumulated Other Comprehensive Income (Parenthetical) (Detail) (Truck, Parts and Other, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension plans, Actuarial loss, pre- tax | $14.90 | $31.70 |
Pension plans, Prior service costs, pre-tax | 0.9 | 0.9 |
Cost of sales and revenues | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension plans, Actuarial loss, pre- tax | 8.4 | 17.4 |
Pension plans, Prior service costs, pre-tax | 0.7 | 0.8 |
SG&A | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension plans, Actuarial loss, pre- tax | 6.5 | 14.2 |
Pension plans, Prior service costs, pre-tax | 0.2 | 0.1 |
R&D | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension plans, Actuarial loss, pre- tax | ' | $0.10 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $2.50 | $2.70 | $12.90 | $11.20 |
Stock-based compensation expense realized tax benefits from the excess of deductible amounts over expense recognized | $0.50 | $1 | $2 | $2.50 |
Additional common shares issued under deferred and stock compensation arrangements | ' | ' | 541,252 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective tax rate | 32.80% | 29.70% | 33.00% | 30.80% |
Segment_Reporting_Information_
Segment Reporting Information by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales and revenues | $4,928.40 | $4,300.10 | $13,877.90 | $12,524.90 |
Investment income | 5.7 | 7.3 | 17 | 21.8 |
Income (loss) before income taxes | 552.4 | 440 | 1,439.90 | 1,210.10 |
Depreciation and amortization | 230.1 | 206.4 | 677.6 | 588.7 |
Truck, Parts and Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales and revenues | 4,622.50 | 4,006.60 | 12,975.70 | 11,649.50 |
Income (loss) before income taxes | 449.8 | 344.5 | 1,148.80 | 938.5 |
Depreciation and amortization | 108.1 | 92.9 | 316.3 | 262.2 |
Financial Services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales and revenues | 305.9 | 293.5 | 902.2 | 875.4 |
Income (loss) before income taxes | 96.9 | 88.2 | 274.1 | 249.8 |
Depreciation and amortization | 122 | 113.5 | 361.3 | 326.5 |
Trucks | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 4,000.10 | 3,416.60 | 11,168.10 | 9,924.60 |
Income (loss) before income taxes | 330 | 242.5 | 801.9 | 645.9 |
Depreciation and amortization | 103.5 | 89.2 | 303.7 | 250.9 |
Trucks | Revenues From External Customers | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales and revenues | 3,810.60 | 3,261.20 | 10,594.80 | 9,464.50 |
Trucks | Intersegment | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | -189.5 | -155.4 | -573.3 | -460.1 |
Parts | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 797 | 726.2 | 2,324.30 | 2,126 |
Income (loss) before income taxes | 127.9 | 106.5 | 366.7 | 311.2 |
Depreciation and amortization | 1.5 | 1.2 | 4.2 | 3.9 |
Parts | Revenues From External Customers | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales and revenues | 784.2 | 715.3 | 2,288.80 | 2,092.20 |
Parts | Intersegment | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | -12.8 | -10.9 | -35.5 | -33.8 |
Other products | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales and revenues | 27.7 | 30.1 | 92.1 | 92.8 |
Income (loss) before income taxes | -8.1 | -4.5 | -19.8 | -18.6 |
Depreciation and amortization | $3.10 | $2.50 | $8.40 | $7.40 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Notional maturities for interest-rate contracts 2014 | $238.50 | ' | $238.50 | ' |
Notional maturities for interest-rate contracts 2015 | 1,271.40 | ' | 1,271.40 | ' |
Notional maturities for interest-rate contracts 2016 | 1,230.70 | ' | 1,230.70 | ' |
Notional maturities for interest-rate contracts 2017 | 543.3 | ' | 543.3 | ' |
Notional maturities for interest-rate contracts 2018 | 330.2 | ' | 330.2 | ' |
Notional maturities for interest-rate contracts thereafter | 110.2 | ' | 110.2 | ' |
Maximum length of future cash flow hedges | ' | ' | '6 years 4 months 24 days | ' |
Recognized gain (loss) on the ineffective portion | 0.3 | 0.3 | 0 | 0.1 |
Accumulated net loss on derivative contracts included in accumulated other comprehensive loss expected to be reclassified to interest expense or cost of sales in the following 12 months | ' | ' | 21.1 | ' |
Interest Rate Contract | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Notional amount of outstanding contracts | 3,724.30 | ' | 3,724.30 | ' |
Foreign-exchange contracts | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Notional amount of outstanding contracts | $351.40 | ' | $351.40 | ' |
Foreign-exchange contracts maturity period | ' | ' | 'Within one year | ' |
Balance_Sheet_Classifications_
Balance Sheet Classifications, Fair Value, Gross and Pro-Forma Net Amounts of Derivative Financial Instruments (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Derivative assets | $64.20 | $48 |
Pro-forma net amount | 60.6 | 31.7 |
LIABILITIES | ' | ' |
Derivative liabilities | 49.6 | 68.6 |
Pro-forma net amount | 46 | 52.3 |
Interest Rate Contract | Financial Services | ' | ' |
ASSETS | ' | ' |
Less amounts not offset in financial instruments | -3.5 | -16.1 |
LIABILITIES | ' | ' |
Less amounts not offset in financial instruments | -3.5 | -16.1 |
Foreign-exchange contracts | Truck, Parts and Other | ' | ' |
ASSETS | ' | ' |
Less amounts not offset in financial instruments | -0.1 | -0.2 |
LIABILITIES | ' | ' |
Less amounts not offset in financial instruments | -0.1 | -0.2 |
Designated as Hedging Instrument | ' | ' |
ASSETS | ' | ' |
Derivative assets | 56.2 | 46.3 |
LIABILITIES | ' | ' |
Derivative liabilities | 48.8 | 68.3 |
Designated as Hedging Instrument | Interest Rate Contract | Financial Services | Other Assets | ' | ' |
ASSETS | ' | ' |
Derivative assets | 54.5 | 46.3 |
Designated as Hedging Instrument | Interest Rate Contract | Financial Services | Deferred Taxes And Other Liabilities | ' | ' |
LIABILITIES | ' | ' |
Derivative liabilities | 48.2 | 67.7 |
Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ' | ' |
ASSETS | ' | ' |
Derivative assets | 1.7 | ' |
Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Accounts Payable Accrued Expenses And Other | ' | ' |
LIABILITIES | ' | ' |
Derivative liabilities | 0.6 | 0.6 |
Not Designated as Hedging Instrument | ' | ' |
ASSETS | ' | ' |
Derivative assets | 8 | 1.7 |
LIABILITIES | ' | ' |
Derivative liabilities | 0.8 | 0.3 |
Not Designated as Hedging Instrument | Interest Rate Contract | Financial Services | Deferred Taxes And Other Liabilities | ' | ' |
LIABILITIES | ' | ' |
Derivative liabilities | 0.2 | ' |
Not Designated as Hedging Instrument | Foreign-exchange contracts | Financial Services | Other Assets | ' | ' |
ASSETS | ' | ' |
Derivative assets | 7.3 | 1.1 |
Not Designated as Hedging Instrument | Foreign-exchange contracts | Financial Services | Deferred Taxes And Other Liabilities | ' | ' |
LIABILITIES | ' | ' |
Derivative liabilities | 0.1 | 0.1 |
Not Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ' | ' |
ASSETS | ' | ' |
Derivative assets | 0.7 | 0.6 |
Not Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Accounts Payable Accrued Expenses And Other | ' | ' |
LIABILITIES | ' | ' |
Derivative liabilities | $0.50 | $0.20 |
Income_or_Expense_Recognized_i
(Income) or Expense Recognized in Earnings Related to Fair Value Hedges (Detail) (Financial Services, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Financial Services | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Interest and other borrowing expenses - interest-rate swaps | $0.60 | $0.20 | $0.10 | $0.60 |
Interest and other borrowing expenses - term notes | ($1) | ($1.20) | ($2.20) | ($3.90) |
PreTax_Effects_of_Derivative_I
Pre-Tax Effects of Derivative Instruments Recognized in OCI (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest Rate Contract | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in OCI | $28.70 | ($33.10) | ($1.60) | $41.30 |
Expense (income) reclassified out of AOCI into income | -23.6 | 32.8 | 8 | -29.1 |
Interest Rate Contract | Financial Services | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in OCI | 28.7 | -33.1 | -1.6 | 41.3 |
Interest Rate Contract | Financial Services | Interest and other borrowing expenses | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Expense (income) reclassified out of AOCI into income | -23.6 | 32.8 | 8 | -29.1 |
Foreign-exchange contracts | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in OCI | 2.5 | -4.6 | -0.3 | -1.7 |
Expense (income) reclassified out of AOCI into income | -0.1 | 1.3 | 1.8 | -0.7 |
Foreign-exchange contracts | Truck, Parts and Other | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Gain (loss) recognized in OCI | 2.5 | -4.6 | -0.3 | -1.7 |
Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Expense (income) reclassified out of AOCI into income | -0.1 | 1.8 | 1.7 | -0.5 |
Foreign-exchange contracts | Truck, Parts and Other | Interest and other expense, net | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Expense (income) reclassified out of AOCI into income | ' | ($0.50) | $0.10 | ($0.20) |
Expense_or_Income_Recognized_i
Expense or (Income) Recognized in Earnings Related to Economic Hedges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest Rate Contract | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
(Income) or expense recognized in earnings related to economic hedges | ($0.30) | ($0.10) | ' | ($1.50) |
Interest Rate Contract | Financial Services | Interest and other borrowing expenses | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
(Income) or expense recognized in earnings related to economic hedges | -0.3 | -0.1 | ' | -1.5 |
Foreign-exchange contracts | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
(Income) or expense recognized in earnings related to economic hedges | -9.7 | -5.2 | -4.9 | -9 |
Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
(Income) or expense recognized in earnings related to economic hedges | -3.8 | -1.3 | -4 | -0.9 |
Foreign-exchange contracts | Truck, Parts and Other | Interest and other expense, net | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
(Income) or expense recognized in earnings related to economic hedges | 1.9 | 0.4 | 2.2 | 0.8 |
Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
(Income) or expense recognized in earnings related to economic hedges | ($7.80) | ($4.30) | ($3.10) | ($8.90) |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Subject to Recurring Fair Value Measurements (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | $64.20 | $48 |
Derivative liabilities | 49.6 | 68.6 |
Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 1,320.60 | 1,267.50 |
Derivative assets | 64.2 | 48 |
Derivative liabilities | 49.6 | 68.6 |
Fair Value, Measurements, Recurring | U.S. tax-exempt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 360.2 | 216.1 |
Fair Value, Measurements, Recurring | U.S. corporate securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 61.4 | 78.2 |
Fair Value, Measurements, Recurring | U.S. government and agency securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 5.4 | 5.5 |
Fair Value, Measurements, Recurring | Non-U.S. corporate securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 593.3 | 609.3 |
Fair Value, Measurements, Recurring | Non-U.S. government securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 187.5 | 217.5 |
Fair Value, Measurements, Recurring | Other debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 112.8 | 140.9 |
Fair Value, Measurements, Recurring | Cross currency swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 49.8 | 40.9 |
Derivative liabilities | 30.7 | 42.1 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 4.7 | 5.4 |
Derivative liabilities | 17.7 | 25.6 |
Fair Value, Measurements, Recurring | Foreign-exchange contracts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 9.7 | 1.7 |
Derivative liabilities | 1.2 | 0.9 |
Level 1 | Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 5.2 | 5.2 |
Level 1 | Fair Value, Measurements, Recurring | U.S. government and agency securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 5.2 | 5.2 |
Level 2 | Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 1,315.40 | 1,262.30 |
Derivative assets | 64.2 | 48 |
Derivative liabilities | 49.6 | 68.6 |
Level 2 | Fair Value, Measurements, Recurring | U.S. tax-exempt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 360.2 | 216.1 |
Level 2 | Fair Value, Measurements, Recurring | U.S. corporate securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 61.4 | 78.2 |
Level 2 | Fair Value, Measurements, Recurring | U.S. government and agency securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 0.2 | 0.3 |
Level 2 | Fair Value, Measurements, Recurring | Non-U.S. corporate securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 593.3 | 609.3 |
Level 2 | Fair Value, Measurements, Recurring | Non-U.S. government securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 187.5 | 217.5 |
Level 2 | Fair Value, Measurements, Recurring | Other debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable debt securities | 112.8 | 140.9 |
Level 2 | Fair Value, Measurements, Recurring | Cross currency swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 49.8 | 40.9 |
Derivative liabilities | 30.7 | 42.1 |
Level 2 | Fair Value, Measurements, Recurring | Interest-rate swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 4.7 | 5.4 |
Derivative liabilities | 17.7 | 25.6 |
Level 2 | Fair Value, Measurements, Recurring | Foreign-exchange contracts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 9.7 | 1.7 |
Derivative liabilities | $1.20 | $0.90 |
Carrying_Amount_and_Fair_Value
Carrying Amount and Fair Value of Financial Services Fixed-Rate Loans and Fixed-Rate Debt (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Services | ' | ' |
Assets, carrying amount | ' | ' |
Fixed-rate loans, carrying amount | $3,600.30 | $3,592.70 |
Liabilities, carrying amount | ' | ' |
Fixed-rate debt, carrying amount | 3,433.90 | 4,039.10 |
Assets, Fair Value | ' | ' |
Fixed-rate loans, Fair Value | 3,646.10 | 3,627.30 |
Liabilities, Fair Value | ' | ' |
Fixed-rate debt, Fair Value | 3,453.90 | 4,087 |
Truck, Parts and Other | ' | ' |
Liabilities, carrying amount | ' | ' |
Fixed-rate debt, carrying amount | ' | 150 |
Liabilities, Fair Value | ' | ' |
Fixed-rate debt, Fair Value | ' | $151.10 |
Components_of_Pension_Expense_
Components of Pension Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | $17 | $18.30 | $51 | $55 |
Interest on projected benefit obligation | 23 | 20.2 | 69.1 | 60.6 |
Expected return on assets | -32.1 | -29.8 | -96.3 | -89.4 |
Amortization of prior service costs | 0.3 | 0.3 | 0.9 | 0.9 |
Recognized actuarial loss | 5.3 | 11 | 15.7 | 33 |
Net pension expense | $13.50 | $20 | $40.40 | $60.10 |
Employee_Benefits_Plans_Additi
Employee Benefits Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contribution to pension plans | $3.70 | $5.90 | $12 | $12 |