Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PCAR | ||
Entity Registrant Name | PACCAR INC | ||
Entity Central Index Key | 75362 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 354,515,811 | ||
Entity Public Float | $21,840,000,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment income | $22.30 | $28.60 | $33.10 |
Provision for losses on receivables | 15.4 | 12.9 | 20 |
Income Before Income Taxes | 2,017.60 | 1,695 | 1,628.90 |
Income taxes | 658.8 | 523.7 | 517.3 |
Net Income | 1,358.80 | 1,171.30 | 1,111.60 |
Net Income Per Share | |||
Basic | $3.83 | $3.31 | $3.13 |
Diluted | $3.82 | $3.30 | $3.12 |
Weighted Average Number of Common Shares Outstanding: | |||
Basic | 355 | 354.2 | 355.1 |
Diluted | 356.1 | 355.2 | 355.8 |
Truck, Parts and Other | |||
Net sales and revenues | 17,792.80 | 15,948.90 | 15,951.70 |
Cost of sales and revenues | 15,481.60 | 13,900.70 | 13,908.30 |
Research and development | 215.6 | 251.4 | 279.3 |
Selling, general and administrative | 465.2 | 465.3 | 476.4 |
Interest and other expense (income), net | 5.5 | 5.3 | -0.3 |
Costs and Expenses, Total | 16,167.90 | 14,622.70 | 14,663.70 |
Income Before Income Taxes | 1,624.90 | 1,326.20 | 1,288 |
Financial Services | |||
Interest and fees | 462.6 | 462.8 | 453.7 |
Operating lease, rental and other revenues | 741.6 | 712.1 | 645.1 |
Revenues | 1,204.20 | 1,174.90 | 1,098.80 |
Interest and other borrowing expenses | 133.7 | 155.9 | 158.4 |
Depreciation and other expense | 588.5 | 571.7 | 517.4 |
Selling, general and administrative | 96.2 | 94.2 | 95.2 |
Provision for losses on receivables | 15.4 | 12.9 | 20 |
Costs and Expenses, Total | 833.8 | 834.7 | 791 |
Income Before Income Taxes | $370.40 | $340.20 | $307.80 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $1,358.80 | $1,171.30 | $1,111.60 |
Unrealized gains (losses) on derivative contracts | |||
Gains (losses) arising during the period | 26.1 | 53.2 | -29.2 |
Tax effect | -6.1 | -16.3 | 9.1 |
Reclassification adjustment | -23.5 | -35.6 | 22.7 |
Tax effect | 5.1 | 10.8 | -7.8 |
Net current period OCI, unrealized gains and (losses) on derivative contracts | 1.6 | 12.1 | -5.2 |
Unrealized gains (losses) on marketable debt securities | |||
Net holding gain (loss) | 5.5 | -8.3 | 2.7 |
Tax effect | -1.3 | 2.2 | -0.6 |
Reclassification adjustment | -0.9 | 1.7 | -2.9 |
Tax effect | 0.3 | -0.5 | 0.8 |
Net current period OCI, unrealized gains and (losses) on marketable debt securities | 3.6 | -4.9 | |
Pension plans | |||
(Losses) gains arising during the period | -291.1 | 324.9 | -71 |
Tax effect | 105.3 | -120.1 | 22.4 |
Reclassification adjustment | 22 | 45.3 | 45.4 |
Tax effect | -7.1 | -15.8 | -15.2 |
Net current period OCI, pension plans | -170.9 | 234.3 | -18.4 |
Foreign currency translation (losses) gains | -422.8 | -73.3 | 83.1 |
Net other comprehensive (loss) income | -588.5 | 168.2 | 59.5 |
Comprehensive Income | $770.30 | $1,339.50 | $1,171.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $1,737.60 | $1,750.10 |
Equipment on operating leases, net | 3,240.50 | 3,328.40 |
Property, plant and equipment, net | 2,313.30 | 2,513.30 |
Total Assets | 20,618.80 | 20,725.50 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, no par value - authorized 1.0 million shares, none issued | ||
Common stock, $1 par value - authorized 1.2 billion shares; issued 355.2 million and 354.3 million shares | 355.2 | 354.3 |
Additional paid-in capital | 156.7 | 106.2 |
Treasury stock, at cost - .7 million shares and nil shares | -42.7 | |
Retained earnings | 6,863.80 | 6,165.10 |
Accumulated other comprehensive (loss) income | -579.8 | 8.7 |
Total Stockholders' Equity | 6,753.20 | 6,634.30 |
Liabilities and Equity, Total | 20,618.80 | 20,725.50 |
Truck, Parts and Other | ||
ASSETS | ||
Cash and cash equivalents | 1,665.10 | 1,657.70 |
Trade and other receivables, net | 1,047.10 | 1,019.60 |
Marketable debt securities | 1,272 | 1,267.50 |
Inventories, net | 925.7 | 813.6 |
Other current assets | 290.5 | 308.1 |
Total Truck, Parts and Other Current Assets | 5,200.40 | 5,066.50 |
Equipment on operating leases, net | 934.5 | 1,038.30 |
Property, plant and equipment, net | 2,313.30 | 2,513.30 |
Other noncurrent assets, net | 253.3 | 477.3 |
Total Assets | 8,701.50 | 9,095.40 |
Current Liabilities | ||
Accounts payable, accrued expenses and other | 2,297.20 | 2,155 |
Dividend payable | 354.4 | 318.8 |
Current portion of long-term debt | 150 | |
Total Truck, Parts and Other Current Liabilities | 2,651.60 | 2,623.80 |
Residual value guarantees and deferred revenues | 970.9 | 1,093.80 |
Other liabilities | 718.8 | 734.4 |
Total Liabilities | 4,341.30 | 4,452 |
Financial Services | ||
ASSETS | ||
Cash and cash equivalents | 72.5 | 92.4 |
Finance and other receivables, net | 9,042.60 | 8,812.10 |
Equipment on operating leases, net | 2,306 | 2,290.10 |
Other assets | 496.2 | 435.5 |
Total Assets | 11,917.30 | 11,630.10 |
Current Liabilities | ||
Accounts payable, accrued expenses and other | 384.5 | 391.7 |
Commercial paper and bank loans | 2,641.90 | 2,508.90 |
Term notes | 5,588.70 | 5,765.30 |
Deferred taxes and other liabilities | 909.2 | 973.3 |
Total Liabilities | $9,524.30 | $9,639.20 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value | ||
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $1 | $1 |
Common stock, authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, issued | 355,200,000 | 354,300,000 |
Treasury stock, shares | 700,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||
Net income | $1,358.80 | $1,171.30 | $1,111.60 |
Adjustments to reconcile net income to cash provided by operations: | |||
Depreciation for Property, plant and equipment | 285.2 | 210.7 | 188.8 |
Depreciation for Equipment on operating leases and other | 632.5 | 600 | 512.1 |
Provision for losses on financial services receivables | 15.4 | 12.9 | 20 |
Deferred taxes | -98 | 97.3 | 151.7 |
Other, net | 40.4 | 36.6 | 34 |
Pension contributions | -81.1 | -26.2 | -190.8 |
Change in operating assets and liabilities: | |||
Trade and other receivables | -71.3 | -115 | 75.2 |
Wholesale receivables on new trucks | -232.8 | -82.5 | -6.5 |
Sales-type finance leases and dealer direct loans on new trucks | -133.1 | -101.9 | -186.6 |
Inventories | -189.5 | -39.6 | -61.5 |
Other assets, net | -72 | -86.9 | -120.7 |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued expenses | 252.3 | 240.8 | -303.6 |
Residual value guarantees and deferred revenues | 123.1 | 261.8 | 204.4 |
Other liabilities, net | 293.7 | 196.4 | 90.9 |
Net Cash Provided by Operating Activities | 2,123.60 | 2,375.70 | 1,519 |
INVESTING ACTIVITIES: | |||
Originations of retail loans and direct financing leases | -3,114.20 | -2,992.80 | -3,235.50 |
Collections on retail loans and direct financing leases | 2,847.60 | 2,469.20 | 2,404.30 |
Net decrease (increase) in wholesale receivables on used equipment | 1.1 | 6.5 | -5.7 |
Purchases of marketable securities | -1,122.50 | -990.1 | -1,048.90 |
Proceeds from sales and maturities of marketable securities | 997.9 | 888.9 | 768.3 |
Payments for property, plant and equipment | -298.2 | -510.6 | -515.4 |
Acquisitions of equipment for operating leases | -1,239.10 | -1,362.20 | -1,288 |
Proceeds from asset disposals | 395.5 | 340.1 | 330.2 |
Other, net | 2.7 | ||
Net Cash Used in Investing Activities | -1,531.90 | -2,151 | -2,588 |
FINANCING ACTIVITIES: | |||
Payments of cash dividends | -623.8 | -283.1 | -809.5 |
Purchases of treasury stock | -42.7 | -162.1 | |
Proceeds from stock compensation transactions | 29.1 | 31 | 13.9 |
Net increase (decrease) in commercial paper and short-term bank loans | 349.1 | -1,039.30 | -365.8 |
Proceeds from long-term debt | 1,650.80 | 2,134.10 | 2,201.10 |
Payments on long-term debt | -1,883 | -568.9 | -668.1 |
Net Cash (Used in) Provided by Financing Activities | -520.5 | 273.8 | 209.5 |
Effect of exchange rate changes on cash | -83.7 | -20.8 | 25.2 |
Net (Decrease) Increase in Cash and Cash Equivalents | -12.5 | 477.7 | -834.3 |
Cash and cash equivalents at beginning of year | 1,750.10 | 1,272.40 | 2,106.70 |
Cash and cash equivalents at end of year | $1,737.60 | $1,750.10 | $1,272.40 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | COMMON STOCK, $1 PAR VALUE: | ADDITIONAL PAID-IN CAPITAL: | TREASURY STOCK, AT COST: | RETAINED EARNINGS: | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME: |
In Millions | ||||||
Balance at Dec. 31, 2011 | $356.80 | $52.10 | $5,174.50 | ($219) | ||
Net income | 1,111.60 | 1,111.60 | ||||
Purchases, shares: 2014-.7; 2013-nil; 2012-4.2 | -162.1 | |||||
Other comprehensive (loss) income | 59.5 | 59.5 | ||||
Cash dividends declared on common stock, per share: 2014-$1.86; 2013-$1.70; 2012-$1.58 | -559.8 | |||||
Treasury stock retirement | -4.2 | -28 | 162.1 | -129.9 | ||
Stock compensation | 0.8 | |||||
Stock compensation and tax benefit | 32.5 | |||||
Balance at Dec. 31, 2012 | 5,846.90 | 353.4 | 56.6 | 5,596.40 | -159.5 | |
Net income | 1,171.30 | 1,171.30 | ||||
Other comprehensive (loss) income | 168.2 | 168.2 | ||||
Cash dividends declared on common stock, per share: 2014-$1.86; 2013-$1.70; 2012-$1.58 | -602.6 | |||||
Stock compensation | 0.9 | |||||
Stock compensation and tax benefit | 49.6 | |||||
Balance at Dec. 31, 2013 | 6,634.30 | 354.3 | 106.2 | 6,165.10 | 8.7 | |
Net income | 1,358.80 | 1,358.80 | ||||
Purchases, shares: 2014-.7; 2013-nil; 2012-4.2 | -42.7 | |||||
Other comprehensive (loss) income | -588.5 | -588.5 | ||||
Cash dividends declared on common stock, per share: 2014-$1.86; 2013-$1.70; 2012-$1.58 | -660.1 | |||||
Stock compensation | 0.9 | |||||
Stock compensation and tax benefit | 50.5 | |||||
Balance at Dec. 31, 2014 | $6,753.20 | $355.20 | $156.70 | ($42.70) | $6,863.80 | ($579.80) |
Consolidated_Statements_Of_Sto1
Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TREASURY STOCK, AT COST: | |||
Purchases, shares | 0.7 | 4.2 | |
RETAINED EARNINGS: | |||
Cash dividends declared on common stock, per share | 1.86 | 1.7 | 1.58 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies | A. | SIGNIFICANT ACCOUNTING POLICIES |
Description of Operations: PACCAR Inc (the Company or PACCAR) is a multinational company operating in three principal segments: (1) the Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks; (2) the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles; and (3) the Financial Services segment (PFS) derives its earnings primarily from financing or leasing PACCAR products in the U.S., Canada, Mexico, Europe and Australia. PACCAR’s sales and revenues are derived primarily from North America and Europe. The Company also operates in Australia and Brasil and sells trucks and parts to customers in Asia, Africa, Middle East and South America. | ||
Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. | ||
Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||
Revenue Recognition: | ||
Truck, Parts and Other: Substantially all sales and revenues of trucks and related aftermarket parts are recorded by the Company when products are shipped to dealers or customers, except for certain truck shipments that are subject to a residual value guarantee to the customer. Revenues related to these shipments are generally recognized on a straight-line basis over the guarantee period (see Note E). At the time certain truck and parts sales to a dealer are recognized, the Company records an estimate of any future sales incentive costs related to such sales. The estimate is based on historical data and announced incentive programs. In the Truck and Parts segments, the Company grants extended payment terms on selected receivables. Interest is charged for the period beyond standard payment terms. Interest income is recorded as earned. | ||
Financial Services: Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts, generally 36 to 60 months, using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. Rental revenues for the years ended December 31, 2014, 2013 and 2012 were $681.5, $631.7 and $551.5, respectively. Depreciation and related leased unit operating expenses were $544.0, $503.5 and $434.9 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at December 31, 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. | ||
Cash and Cash Equivalents: Cash equivalents consist of liquid investments with a maturity at date of purchase of 90 days or less. | ||
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. | ||
Receivables: | ||
Trade and Other Receivables: The Company’s trade and other receivables are recorded at cost, net of allowances. At December 31, 2014 and 2013, respectively, trade and other receivables include trade receivables from dealers and customers of $882.2 and $847.6 and other receivables of $165.0 and $172.0 relating primarily to value added tax receivables and supplier allowances and rebates. | ||
Finance and Other Receivables: | ||
Loans – Loans represent fixed or floating-rate loans to customers collateralized by the vehicles purchased and are recorded at amortized cost. | ||
Finance leases – Finance leases are retail direct financing leases and sales-type finance leases, which lease equipment to retail customers and dealers. These leases are reported as the sum of minimum lease payments receivable and estimated residual value of the property subject to the contracts, reduced by unearned interest which is shown separately. | ||
Dealer wholesale financing – Dealer wholesale financing is floating-rate wholesale loans to PACCAR dealers for new and used trucks and are recorded at amortized cost. The loans are collateralized by the trucks being financed. | ||
Operating lease and other trade receivables – Operating lease and other trade receivables are monthly rentals due on operating leases, interest on loans and other amounts due within one year in the normal course of business. | ||
Allowance for Credit Losses: | ||
Truck, Parts and Other: The Company historically has not experienced significant losses or past due amounts on trade and other receivables in its Truck, Parts and Other businesses. The Company’s Truck, Parts and Other trade receivable past dues are determined based on contractual payment terms. Accounts are considered past due once the unpaid balance is over 30 days outstanding. Accounts are charged-off against the allowance for credit losses when, in the judgment of management, they are considered to be uncollectible. The allowance for credit losses for Truck, Parts and Other was $1.9 and $2.4 for the years ended December 31, 2014 and 2013, respectively. Net charge-offs were $.2, $.2 and $.3 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Financial Services: 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. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. | ||
On average, modifications extended contractual terms by approximately five 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 December 31, 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 (TDR). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs. | ||
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. | ||
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. Cost of sales and revenues include shipping and handling costs incurred to deliver products to dealers and customers. | ||
Equipment on Operating Leases: The Company’s Financial Services segment leases equipment under operating leases to its customers. In addition, in the Truck segment, equipment sold to customers in Europe subject to a residual value guarantee (RVG) by the Company is generally accounted for as an operating lease. Equipment is recorded at cost and is depreciated on the straight-line basis to the lower of the estimated residual value or guarantee value. Lease and guarantee periods generally range from three to five years. Estimated useful lives of the equipment range from four to nine years. The Company reviews residual values of equipment on operating leases periodically to determine that recorded amounts are appropriate. | ||
Property, Plant and Equipment: Property, plant and equipment are stated at cost. Depreciation is computed principally by the straight-line method based on the estimated useful lives of the various classes of assets. Certain production tooling is amortized on a unit of production basis. | ||
Long-lived Assets and Goodwill: The Company evaluates the carrying value of property, plant and equipment when events and circumstances warrant a review. Goodwill is tested for impairment at least on an annual basis. There were no impairment charges for the three years ended December 31, 2014. Goodwill was $128.6 and $144.6 at December 31, 2014 and 2013, respectively. The decrease in value is due to currency translation. | ||
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 December 31, 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. | ||
Foreign Currency Translation: For most of the Company’s foreign subsidiaries, the local currency is the functional currency. All assets and liabilities are translated at year-end exchange rates and all income statement amounts are translated at the weighted average rates for the period. Translation adjustments are recorded in accumulated other comprehensive (loss) income. The Company uses the U.S. dollar as the functional currency for all but one of its Mexican subsidiaries, which uses the local currency. For the U.S. functional currency entities in Mexico, inventories, cost of sales, property, plant and equipment and depreciation are remeasured at historical rates and resulting adjustments are included in net income. | ||
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. | ||
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. |
Investment_in_Marketable_Debt_
Investment in Marketable Debt Securities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Investment in Marketable Debt Securities | B. | INVESTMENTS IN MARKETABLE DEBT SECURITIES | |||||||||||||||
Marketable debt securities consisted of the following at December 31: | |||||||||||||||||
2014 | AMORTIZED | UNREALIZED | UNREALIZED | FAIR | |||||||||||||
COST | GAINS | LOSSES | VALUE | ||||||||||||||
U.S. tax-exempt securities | $ | 362.9 | $ | 0.8 | $ | 0.3 | $ | 363.4 | |||||||||
U.S. corporate securities | 80.9 | 0.6 | 81.5 | ||||||||||||||
U.S. government and agency securities | 8 | 8 | |||||||||||||||
Non-U.S. corporate securities | 528.1 | 3.9 | 532 | ||||||||||||||
Non-U.S. government securities | 192.1 | 2 | 194.1 | ||||||||||||||
Other debt securities | 92.8 | 0.3 | 0.1 | 93 | |||||||||||||
$ | 1,264.80 | $ | 7.6 | $ | 0.4 | $ | 1,272.00 | ||||||||||
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 $1.2, $2.0 and $3.8, and gross realized losses were $.1, $.7 and $.3 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Marketable debt securities with continuous unrealized losses and their related fair values were as follows: | |||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||
LESS THAN | TWELVE MONTHS | LESS THAN | TWELVE MONTHS | ||||||||||||||
TWELVE MONTHS | OR GREATER | TWELVE MONTHS | OR GREATER | ||||||||||||||
Fair value | $ | 249.6 | $ | 388.3 | $ | 28.4 | |||||||||||
Unrealized losses | 0.4 | 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 at December 31, 2014 were as follows: | |||||||||||||||||
Maturities: | AMORTIZED | FAIR | |||||||||||||||
COST | VALUE | ||||||||||||||||
Within one year | $ | 423.6 | $ | 424.1 | |||||||||||||
One to five years | 841.2 | 847.9 | |||||||||||||||
$ | 1,264.80 | $ | 1,272.00 | ||||||||||||||
Marketable debt securities included nil and $.4 of variable rate demand obligations (VRDOs) at December 31, 2014 and 2013, respectively. VRDOs are debt instruments with long-term scheduled maturities which have interest rates that reset periodically. | |||||||||||||||||
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | |||||||||
C. INVENTORIES | |||||||||
Inventories include the following: | |||||||||
At December 31, | 2014 | 2013 | |||||||
Finished products | $ | 512.3 | $ | 440.6 | |||||
Work in process and raw materials | 587.7 | 545.2 | |||||||
1,100.00 | 985.8 | ||||||||
Less LIFO reserve | (174.3 | ) | (172.2 | ) | |||||
$ | 925.7 | $ | 813.6 | ||||||
Inventories valued using the LIFO method comprised 47% of consolidated inventories before deducting the LIFO reserve at both December 31, 2014 and 2013. |
Finance_and_Other_Receivables
Finance and Other Receivables | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||
Finance and Other Receivables | |||||||||||||||||||||
D. FINANCE AND OTHER RECEIVABLES | |||||||||||||||||||||
Finance and other receivables include the following: | |||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Loans | $ | 3,968.50 | $ | 3,977.40 | |||||||||||||||||
Direct financing leases | 2,752.80 | 2,680.80 | |||||||||||||||||||
Sales-type finance leases | 972.8 | 921.1 | |||||||||||||||||||
Dealer wholesale financing | 1,755.80 | 1,616.50 | |||||||||||||||||||
Operating lease and other trade receivables | 99.5 | 121.3 | |||||||||||||||||||
Unearned interest: Finance leases | (384.8 | ) | (375.7 | ) | |||||||||||||||||
$ | 9,164.60 | $ | 8,941.40 | ||||||||||||||||||
Less allowance for losses: | |||||||||||||||||||||
Loans and leases | (105.5 | ) | (110.9 | ) | |||||||||||||||||
Dealer wholesale financing | (9.0 | ) | (10.4 | ) | |||||||||||||||||
Operating lease and other trade receivables | (7.5 | ) | (8.0 | ) | |||||||||||||||||
$ | 9,042.60 | $ | 8,812.10 | ||||||||||||||||||
The net activity of sales-type finance leases, dealer direct loans and dealer wholesale financing on new trucks is shown in the operating section of the Consolidated Statements of Cash Flows since those receivables finance the sale of Company inventory. | |||||||||||||||||||||
Annual minimum payments due on finance receivables are as follows: | |||||||||||||||||||||
Beginning January 1, 2015 | LOANS | FINANCE | |||||||||||||||||||
LEASES | |||||||||||||||||||||
2015 | $ | 1,251.20 | $ | 1,066.90 | |||||||||||||||||
2016 | 1,032.10 | 905.7 | |||||||||||||||||||
2017 | 815.3 | 691.6 | |||||||||||||||||||
2018 | 523.8 | 448 | |||||||||||||||||||
2019 | 296.2 | 265.7 | |||||||||||||||||||
Thereafter | 49.9 | 143.7 | |||||||||||||||||||
$ | 3,968.50 | $ | 3,521.60 | ||||||||||||||||||
Estimated residual values included with finance leases amounted to $204.0 in 2014 and $229.6 in 2013. Experience indicates substantially all of dealer wholesale financing will be repaid within one year. In addition, repayment experience indicates that some loans, leases and other finance receivables will be paid prior to contract maturity, while others may be extended or modified. | |||||||||||||||||||||
For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating more than five trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk. | |||||||||||||||||||||
Allowance for Credit Losses: The allowance for credit losses is summarized as follows: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
WHOLESALE | RETAIL | RETAIL | OTHER* | TOTAL | |||||||||||||||||
Balance at January 1 | $ | 10.4 | $ | 13.4 | $ | 97.5 | $ | 8 | $ | 129.3 | |||||||||||
Provision for losses | 0.3 | (1.4 | ) | 14.8 | 1.7 | 15.4 | |||||||||||||||
Charge-offs | (.9 | ) | (18.2 | ) | (2.2 | ) | (21.3 | ) | |||||||||||||
Recoveries | 4.6 | 0.7 | 5.3 | ||||||||||||||||||
Currency translation and other | (.8 | ) | (.1 | ) | (5.1 | ) | (.7 | ) | (6.7 | ) | |||||||||||
Balance at December 31 | $ | 9 | $ | 11.9 | $ | 93.6 | $ | 7.5 | $ | 122 | |||||||||||
2013 | |||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
WHOLESALE | RETAIL | RETAIL | OTHER* | TOTAL | |||||||||||||||||
Balance at January 1 | $ | 11.8 | $ | 13.4 | $ | 99.2 | $ | 5.6 | $ | 130 | |||||||||||
Provision for losses | (.9 | ) | 0.2 | 9.8 | 3.8 | 12.9 | |||||||||||||||
Charge-offs | (.5 | ) | (21.2 | ) | (2.8 | ) | (24.5 | ) | |||||||||||||
Recoveries | 9.9 | 1 | 10.9 | ||||||||||||||||||
Currency translation and other | (.2 | ) | (.2 | ) | 0.4 | ||||||||||||||||
Balance at December 31 | $ | 10.4 | $ | 13.4 | $ | 97.5 | $ | 8 | $ | 129.3 | |||||||||||
* | Operating lease and other trade receivables. | ||||||||||||||||||||
2012 | |||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
WHOLESALE | RETAIL | RETAIL | OTHER* | TOTAL | |||||||||||||||||
Balance at January 1 | $ | 11.7 | $ | 12 | $ | 106.5 | $ | 8.8 | $ | 139 | |||||||||||
Provision for losses | 1.8 | 1.4 | 13.1 | 3.7 | 20 | ||||||||||||||||
Charge-offs | (32.1 | ) | (6.6 | ) | (38.7 | ) | |||||||||||||||
Recoveries | 7 | 0.4 | 7.4 | ||||||||||||||||||
Currency translation and other | (1.7 | ) | 4.7 | (.7 | ) | 2.3 | |||||||||||||||
Balance at December 31 | $ | 11.8 | $ | 13.4 | $ | 99.2 | $ | 5.6 | $ | 130 | |||||||||||
* Operating lease and other trade receivables. | |||||||||||||||||||||
Information regarding finance receivables evaluated and determined individually and collectively is as follows: | |||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
At December 31, 2014 | WHOLESALE | RETAIL | RETAIL | TOTAL | |||||||||||||||||
Recorded investment for impaired finance receivables | $ | 4.9 | $ | 43.7 | $ | 48.6 | |||||||||||||||
evaluated individually | |||||||||||||||||||||
Allowance for impaired finance receivables determined | 0.5 | 4.6 | 5.1 | ||||||||||||||||||
individually | |||||||||||||||||||||
Recorded investment for finance receivables evaluated | 1,750.90 | $ | 1,606.50 | 5,659.10 | 9,016.50 | ||||||||||||||||
collectively | |||||||||||||||||||||
Allowance for finance receivables determined | 8.5 | 11.9 | 89 | 109.4 | |||||||||||||||||
collectively | |||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
At December 31, 2013 | WHOLESALE | RETAIL | RETAIL | TOTAL | |||||||||||||||||
Recorded investment for impaired finance receivables | $ | 8.5 | $ | 42.1 | $ | 50.6 | |||||||||||||||
evaluated individually | |||||||||||||||||||||
Allowance for impaired finance receivables determined | 1.4 | 5.9 | 7.3 | ||||||||||||||||||
individually | |||||||||||||||||||||
Recorded investment for finance receivables evaluated | 1,608.00 | $ | 1,525.60 | 5,635.90 | 8,769.50 | ||||||||||||||||
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: | |||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Dealer: | |||||||||||||||||||||
Wholesale | $ | 4.9 | $ | 8 | |||||||||||||||||
Customer retail: | |||||||||||||||||||||
Fleet | 34.4 | 30.5 | |||||||||||||||||||
Owner/operator | 8.9 | 8.6 | |||||||||||||||||||
$ | 48.2 | $ | 47.1 | ||||||||||||||||||
Impaired Loans: Impaired loans with no specific reserves were $16.7 and $10.7 at December 31, 2014 and 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 December 31, 2014 and 2013 was not significantly different than the unpaid principal balance. | |||||||||||||||||||||
DEALER | CUSTOMER RETAIL | ||||||||||||||||||||
At December 31, 2014 | WHOLESALE | RETAIL | FLEET | OWNER/ | TOTAL | ||||||||||||||||
OPERATOR | |||||||||||||||||||||
Impaired loans with a specific reserve | $ | 0.5 | $ | 12.7 | $ | 2.6 | $ | 15.8 | |||||||||||||
Associated allowance | (.5 | ) | (1.5 | ) | (.5 | ) | (2.5 | ) | |||||||||||||
Net carrying amount of impaired loans | $ | 11.2 | $ | 2.1 | $ | 13.3 | |||||||||||||||
Average recorded investment | $ | 8.8 | $ | 22.5 | $ | 2.8 | $ | 34.1 | |||||||||||||
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 | $ | 5.8 | $ | 28.9 | $ | 5 | $ | 39.7 | |||||||||||||
During the period the loans above were considered impaired, interest income recognized on a cash basis is as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Interest income recognized: | |||||||||||||||||||||
Dealer wholesale | $ | 0.1 | $ | 0.1 | $ | 0.1 | |||||||||||||||
Customer retail - fleet | 1.2 | 2.9 | 1.2 | ||||||||||||||||||
Customer retail - owner/operator | 0.4 | 0.9 | 0.8 | ||||||||||||||||||
$ | 1.7 | $ | 3.9 | $ | 2.1 | ||||||||||||||||
Credit Quality: The Company’s customers are principally concentrated in the transportation industry in North America, Europe and Australia. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 5% of the total portfolio assets. The Company retains as collateral a security interest in the related equipment. | |||||||||||||||||||||
At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss. | |||||||||||||||||||||
The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high-risk. Watch accounts are not impaired. At-risk accounts are accounts that are impaired, including TDRs, accounts over 90 days past due and other accounts on non-accrual status. The tables below summarize the Company’s finance receivables by credit quality indicator and portfolio class. | |||||||||||||||||||||
DEALER | CUSTOMER RETAIL | ||||||||||||||||||||
At December 31, 2014 | WHOLESALE | RETAIL | FLEET | OWNER/ | TOTAL | ||||||||||||||||
OPERATOR | |||||||||||||||||||||
Performing | $ | 1,739.50 | $ | 1,606.40 | $ | 4,430.90 | $ | 1,193.90 | $ | 8,970.70 | |||||||||||
Watch | 11.4 | 0.1 | 21.8 | 12.5 | 45.8 | ||||||||||||||||
At-risk | 4.9 | 34.8 | 8.9 | 48.6 | |||||||||||||||||
$ | 1,755.80 | $ | 1,606.50 | $ | 4,487.50 | $ | 1,215.30 | $ | 9,065.10 | ||||||||||||
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 December 31, 2014 | WHOLESALE | RETAIL | FLEET | OWNER/ | TOTAL | ||||||||||||||||
OPERATOR | |||||||||||||||||||||
Current and up to 30 days past due | $ | 1,752.90 | $ | 1,606.50 | $ | 4,464.40 | $ | 1,200.00 | $ | 9,023.80 | |||||||||||
31 – 60 days past due | 0.6 | 10.6 | 6.9 | 18.1 | |||||||||||||||||
Greater than 60 days past due | 2.3 | 12.5 | 8.4 | 23.2 | |||||||||||||||||
$ | 1,755.80 | $ | 1,606.50 | $ | 4,487.50 | $ | 1,215.30 | $ | 9,065.10 | ||||||||||||
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 $36.0 and $27.6 at December 31, 2014 and 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: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
RECORDED INVESTMENT | RECORDED INVESTMENT | ||||||||||||||||||||
PRE-MODIFICATION | POST-MODIFICATION | PRE-MODIFICATION | POST-MODIFICATION | ||||||||||||||||||
Fleet | $ | 24.4 | $ | 24.1 | $ | 11.4 | $ | 11.2 | |||||||||||||
Owner/operator | 2.3 | 2.3 | 2.4 | 2.4 | |||||||||||||||||
$ | 26.7 | $ | 26.4 | $ | 13.8 | $ | 13.6 | ||||||||||||||
The effect on the allowance for credit losses from such modifications was not significant at December 31, 2014 and 2013. | |||||||||||||||||||||
TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past due) in the year ended by portfolio class are as follows: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fleet | $ | 0.7 | $ | 4.6 | |||||||||||||||||
Owner/operator | 0.2 | 0.7 | |||||||||||||||||||
$ | 0.9 | $ | 5.3 | ||||||||||||||||||
The TDRs that subsequently defaulted did not significantly impact the Company’s allowance for credit losses at December 31, 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 December 31, 2014 and 2013 was $19.0 and $13.7, respectively. Proceeds from the sales of repossessed assets were $58.5, $63.2 and $62.2 for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts are included in proceeds from asset disposals in the 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 Income. |
Equipment_On_Operating_Leases
Equipment On Operating Leases | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Leases, Operating [Abstract] | |||||||||||||||||||||
Equipment On Operating Leases | |||||||||||||||||||||
E. EQUIPMENT ON OPERATING LEASES | |||||||||||||||||||||
A summary of equipment on operating leases for Truck, Parts and Other and for the Financial Services segment is as follows: | |||||||||||||||||||||
TRUCK, PARTS AND OTHER | FINANCIAL SERVICES | ||||||||||||||||||||
At December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Equipment on operating leases | $ | 1,222.90 | $ | 1,357.80 | $ | 3,269.00 | $ | 3,212.20 | |||||||||||||
Less allowance for depreciation | (288.4 | ) | (319.5 | ) | (963.0 | ) | (922.1 | ) | |||||||||||||
$ | 934.5 | $ | 1,038.30 | $ | 2,306.00 | $ | 2,290.10 | ||||||||||||||
Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2015 are $527.7, $377.2, $243.4, $118.1, $37.0 and $6.8 thereafter. | |||||||||||||||||||||
When the equipment is sold subject to an RVG, the full sales price is received from the customer. A liability is established for the residual value obligation with the remainder of the proceeds recorded as deferred lease revenue. These amounts are summarized below: | |||||||||||||||||||||
TRUCK, PARTS AND OTHER | |||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Residual value guarantees | $ | 629.1 | $ | 653.9 | |||||||||||||||||
Deferred lease revenues | 341.8 | 439.9 | |||||||||||||||||||
$ | 970.9 | $ | 1,093.80 | ||||||||||||||||||
The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2014, the annual amortization of deferred revenues beginning January 1, 2015 is $139.5, $100.5, $58.2, $33.3, $10.2 and $.1 thereafter. Annual maturities of the RVGs beginning January 1, 2015 are $228.9, $169.1, $110.8, $64.4, $40.5 and $15.4 thereafter. |
Property_Plant_And_Equipment
Property, Plant And Equipment | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||
Property, Plant And Equipment | |||||||||||||||
F. PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||
Property, plant and equipment include the following: | |||||||||||||||
At December 31, | USEFUL LIVES | 2014 | 2013 | ||||||||||||
Land | $ | 239 | $ | 238.5 | |||||||||||
Buildings and improvements | 10-40 years | 1,082.80 | 1,024.90 | ||||||||||||
Machinery, equipment and production tooling | 3-12 years | 3,316.70 | 3,345.80 | ||||||||||||
Construction in progress | 175.8 | 321.2 | |||||||||||||
4,814.30 | 4,930.40 | ||||||||||||||
Less allowance for depreciation | (2,501.0 | ) | (2,417.1 | ) | |||||||||||
$ | 2,313.30 | $ | 2,513.30 | ||||||||||||
Accounts_Payable_Accrued_Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||
Accounts Payable, Accrued Expenses and Other | |||||||||||||||
G. ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER | |||||||||||||||
Accounts payable, accrued expenses and other include the following: | |||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||
Truck, Parts and Other: | |||||||||||||||
Accounts payable | $ | 1,167.60 | $ | 1,005.60 | |||||||||||
Product support reserves | 355.3 | 291.7 | |||||||||||||
Accrued expenses | 213.5 | 234.3 | |||||||||||||
Accrued capital expenditures | 63.9 | 139.9 | |||||||||||||
Salaries and wages | 224.9 | 223.9 | |||||||||||||
Other | 272 | 259.6 | |||||||||||||
$ | 2,297.20 | $ | 2,155.00 | ||||||||||||
Product_Support_Liabilities
Product Support Liabilities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||
Product Support Liabilities | H. | PRODUCT SUPPORT LIABILITIES | |||||||||||||||
Changes in product support liabilities are summarized as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at January 1 | $ | 630.5 | $ | 540.7 | $ | 448.7 | |||||||||||
Cost accruals and revenue deferrals | 642.4 | 479.6 | 437.4 | ||||||||||||||
Payments and revenue recognized | (456.6 | ) | (399.8 | ) | (351.7 | ) | |||||||||||
Currency translation | (43.5 | ) | 10 | 6.3 | |||||||||||||
Balance at December 31 | $ | 772.8 | $ | 630.5 | $ | 540.7 | |||||||||||
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 H; 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 H and as revised: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
PREVIOUSLY | REVISED | PREVIOUSLY | REVISED | ||||||||||||||
REPORTED | REPORTED | ||||||||||||||||
Cost accrual and revenue deferrals | $ | 340.4 | $ | 479.6 | $ | 305.4 | $ | 437.4 | |||||||||
Payments and revenue recognized | (260.6 | ) | (399.8 | ) | (219.7 | ) | (351.7 | ) | |||||||||
Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: | |||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Accounts payable, accrued expenses and other | $ | 355.3 | $ | 291.7 | |||||||||||||
Other liabilities | 406.2 | 327.5 | |||||||||||||||
Financial Services: | |||||||||||||||||
Deferred taxes and other liabilities | 11.3 | 11.3 | |||||||||||||||
$ | 772.8 | $ | 630.5 | ||||||||||||||
Borrowings_And_Credit_Arrangem
Borrowings And Credit Arrangements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Borrowings And Credit Arrangements | |||||||||||||||||
I. BORROWINGS AND CREDIT ARRANGEMENTS | |||||||||||||||||
Truck, Parts and Other long-term debt at December 31, 2013 consisted of $150.0 of notes with an effective interest rate of 6.9% which was repaid upon maturity in February 2014. | |||||||||||||||||
Financial Services borrowings include the following: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
At December 31, | EFFECTIVE | BORROWINGS | EFFECTIVE | BORROWINGS | |||||||||||||
RATE | RATE | ||||||||||||||||
Commercial paper | 0.8 | % | $ | 2,506.00 | 1.2 | % | $ | 2,266.80 | |||||||||
Medium-term bank loans | 5 | % | 135.9 | 5 | % | 242.1 | |||||||||||
2,641.90 | 2,508.90 | ||||||||||||||||
Term notes | 1.5 | % | 5,588.70 | 1.8 | % | 5,765.30 | |||||||||||
1.3 | % | $ | 8,230.60 | 1.7 | % | $ | 8,274.20 | ||||||||||
The commercial paper and term notes of $8,094.7 and $8,032.1 at December 31, 2014 and 2013 include a net effect of fair value hedges and unamortized discounts of $(1.0) and $1.5, respectively. The effective rate is the weighted average rate as of December 31, 2014 and 2013 and includes the effects of interest-rate contracts. | |||||||||||||||||
The annual maturities of the Financial Services borrowings are as follows: | |||||||||||||||||
Beginning January 1, 2015 | COMMERCIAL | BANK | TERM | TOTAL | |||||||||||||
PAPER | LOANS | NOTES | |||||||||||||||
2015 | $ | 2,506.90 | $ | 20.4 | $ | 1,601.90 | $ | 4,129.20 | |||||||||
2016 | 34 | 1,612.90 | 1,646.90 | ||||||||||||||
2017 | 23.7 | 1,793.80 | 1,817.50 | ||||||||||||||
2018 | 37.4 | 280.2 | 317.6 | ||||||||||||||
2019 | 20.4 | 300 | 320.4 | ||||||||||||||
$ | 2,506.90 | $ | 135.9 | $ | 5,588.80 | $ | 8,231.60 | ||||||||||
Interest paid on borrowings was $136.3, $149.3 and $149.9 in 2014, 2013 and 2012, respectively. For the years ended December 31, 2014, 2013 and 2012, the Company capitalized interest on borrowings of $1.3, $10.3 and $10.3, respectively, in Truck, Parts and Other. | |||||||||||||||||
The primary sources of borrowings in the capital markets are commercial paper and medium-term notes issued in the public markets, and to a lesser extent, bank loans. The medium-term notes are issued by PACCAR Inc, PACCAR Financial Corp. (PFC), PACCAR Financial Europe and PACCAR Financial Mexico. | |||||||||||||||||
In December 2011, PACCAR Inc filed a shelf registration under the Securities Act of 1933; the registration expired in the fourth quarter of 2014. Upon maturity in February 2014, $500.0 million of medium-term notes, of which $150.0 million was manufacturing debt, were repaid in full. | |||||||||||||||||
In November 2012, the Company’s U.S. finance subsidiary, PFC, filed a shelf registration under the Securities Act of 1933 effective for a three year period. The total amount of medium-term notes outstanding for PFC as of December 31, 2014 was $4,150.0. The registration expires in November 2015 and does not limit the principal amount of debt securities that may be issued during that period. | |||||||||||||||||
At December 31, 2014, the Company’s European finance subsidiary, PACCAR Financial Europe, had €366.9 available for issuance under a €1,500.0 medium-term note program registered with the London Stock Exchange. The program was renewed in the second quarter of 2014 and is renewable annually through the filing of a new prospectus. | |||||||||||||||||
In April 2011, PACCAR Financial Mexico registered a 10,000.0 peso medium-term note and commercial paper program with the Comision Nacional Bancaria y de Valores. The registration expires in 2016 and limits the amount of commercial paper (up to one year) to 5,000.0 pesos. At December 31, 2014, 8,000.0 pesos remained available for issuance. | |||||||||||||||||
The Company has line of credit arrangements of $3,503.9, of which $3,368.0 were unused at December 31, 2014. Included in these arrangements are $3,000.0 of syndicated bank facilities, of which $1,000.0 matures in June 2015, $1,000.0 matures in June 2018 and $1,000.0 matures in June 2019. The Company intends to replace these credit facilities as they expire with facilities of similar amounts and duration. These credit facilities are maintained primarily to provide backup liquidity for commercial paper borrowings and maturing medium-term notes. There were no borrowings under the syndicated bank facilities for the year ended December 31, 2014. |
Leases
Leases | 12 Months Ended | |
Dec. 31, 2014 | ||
Leases, Operating [Abstract] | ||
Leases | J. | LEASES |
The Company leases certain facilities and computer equipment under operating leases. Leases expire at various dates through the year 2023. At January 1, 2015, annual minimum rent payments under non-cancelable operating leases having initial or remaining terms in excess of one year are $19.5, $14.2, $9.7, $6.6, $2.9 and $2.2 thereafter. For the years ended December 31, 2014, 2013 and 2012, total rental expenses under all leases amounted to $34.5, $34.1 and $29.1, respectively. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments And Contingencies | K. | COMMITMENTS AND CONTINGENCIES |
The Company is involved in various stages of investigations and cleanup actions in different countries related to environmental matters. In certain of these matters, the Company has been designated as a “potentially responsible party” by domestic and foreign environmental agencies. The Company has an undiscounted accrual to provide for the estimated costs to investigate and complete cleanup actions where it is probable that the Company will incur such costs in the future. Expenditures related to environmental activities for the years ended December 31, 2014, 2013 and 2012 were $1.2, $2.3 and $1.7, respectively. | ||
While the timing and amount of the ultimate costs associated with future environmental cleanup cannot be determined, management expects that these matters will not have a significant effect on the Company’s consolidated financial position. | ||
At December 31, 2014, PACCAR had standby letters of credit of $19.0, which guarantee various insurance and financing activities. At December 31, 2014, PACCAR’s financial services companies, in the normal course of business, had outstanding commitments to fund new loan and lease transactions amounting to $769.6. The commitments generally expire in 90 days. The Company had other commitments, primarily to purchase production inventory, equipment and energy amounting to $262.8, $76.1, $70.6, $5.2 and nil for 2015, 2016, 2017, 2018 and 2019, respectively. | ||
In January 2011, the European Commission (EC) commenced an investigation of all major European commercial vehicle manufacturers, including subsidiaries of the Company, concerning whether such companies participated in agreements or concerted practices to coordinate their commercial policy in the European Union. On November 20, 2014, the EC issued a Statement of Objections to the manufacturers, including DAF Trucks N.V., its subsidiary DAF Trucks Deutschland GmbH and PACCAR Inc as their parent. The Statement of Objections is a procedural step in which the EC expressed its preliminary view that the manufacturers had participated in anticompetitive practices in the European Union. The EC indicated that it will seek to impose significant fines on the manufacturers. DAF is studying the Statement of Objections and will prepare a response. The EC will review the manufacturers’ responses before issuing a decision. Any decision would be subject to appeal. The Company is unable to estimate the potential fine at this time and accordingly, no accrual for any potential fine has been made as of December 31, 2014. | ||
PACCAR is a defendant in various legal proceedings and, in addition, there are various other contingent liabilities arising in the normal course of business. Except for the EC matter noted above, after consultation with legal counsel, management does not anticipate that disposition of these proceedings and contingent liabilities will have a material effect on the consolidated financial statements. |
Employee_Benefits
Employee Benefits | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||
Employee Benefits | L. | EMPLOYEE BENEFITS | |||||||||||||||||||
Severance Costs: The Company incurred severance expense in 2014, 2013 and 2012 of $1.8, $3.5 and $4.8, respectively. | |||||||||||||||||||||
Defined Benefit Pension Plans: PACCAR has several defined benefit pension plans, which cover a majority of its employees. The Company evaluates its actuarial assumptions on an annual basis and considers changes based upon market conditions and other factors. For its U.S. plans, the Company adopted the revised mortality tables published in October 2014 by the U.S. Society of Actuaries. As a result of this change in actuarial assumption, the Company’s projected benefit obligation increased by $96.4. | |||||||||||||||||||||
The expected return on plan assets is determined by using a market-related value of assets, which is calculated based on an average of the previous five years of asset gains and losses. | |||||||||||||||||||||
Generally, accumulated unrecognized actuarial gains and losses are amortized using the 10% corridor approach. The corridor is defined as the greater of either 10% of the projected benefit obligation or the market-related value of plan assets. The amortization amount is the excess beyond the corridor divided by the average remaining estimated service life of participants on a straight-line basis. | |||||||||||||||||||||
The Company funds its pensions in accordance with applicable employee benefit and tax laws. The Company contributed $81.1 to its pension plans in 2014 and $26.2 in 2013. The Company expects to contribute in the range of $50.0 to $100.0 to its pension plans in 2015, of which $7.7 is estimated to satisfy minimum funding requirements. Annual benefits expected to be paid beginning January 1, 2015 are $72.7, $76.6, $84.0, $88.6, $94.3 and for the five years thereafter, a total of $555.8. | |||||||||||||||||||||
Plan assets are invested in global equity and debt securities through professional investment managers with the objective to achieve targeted risk adjusted returns and maintain liquidity sufficient to fund current benefit payments. Typically, each defined benefit plan has an investment policy that includes a target for asset mix, including maximum and minimum ranges for allocation percentages by investment category. The actual allocation of assets may vary at times based upon rebalancing policies and other factors. The Company periodically assesses the target asset mix by evaluating external sources of information regarding the long-term historical return, volatilities and expected future returns for each investment category. In addition, the long-term rates of return assumptions for pension accounting are reviewed annually to ensure they are appropriate. Target asset mix and forecast long-term returns by asset category are considered in determining the assumed long-term rates of return, although historical returns realized are given some consideration. | |||||||||||||||||||||
The fair value of mutual funds, common stocks and U.S. treasuries is determined using the market approach and is based on the quoted prices in active markets. These securities are categorized as Level 1. The fair value of commingled trust funds is determined using the market approach and is based on the unadjusted net asset value per unit as determined by the sponsor of the fund based on the fair values of underlying investments. These securities are categorized as Level 2. The fair value of debt securities is determined using the market approach and is based on the quoted market prices of the securities or other observable inputs. These securities are categorized as Level 2. | |||||||||||||||||||||
The following information details the allocation of plan assets by investment type. See Note P for definitions of fair value levels. | |||||||||||||||||||||
At December 31, 2014 | TARGET | LEVEL 1 | LEVEL 2 | TOTAL | |||||||||||||||||
Equities: | |||||||||||||||||||||
U.S. equities | $ | 666.4 | $ | 666.4 | |||||||||||||||||
Global equities | 691.3 | 691.3 | |||||||||||||||||||
Total equities | 50 - 70 | % | 1,357.70 | 1,357.70 | |||||||||||||||||
Fixed income: | |||||||||||||||||||||
U.S. fixed income | $ | 269.4 | 339.2 | 608.6 | |||||||||||||||||
Non-U.S. fixed income | 286.5 | 286.5 | |||||||||||||||||||
Total fixed income | 30 - 50 | % | 269.4 | 625.7 | 895.1 | ||||||||||||||||
Cash and other | 7.7 | 48.9 | 56.6 | ||||||||||||||||||
Total plan assets | $ | 277.1 | $ | 2,032.30 | $ | 2,309.40 | |||||||||||||||
At December 31, 2013 | TARGET | LEVEL 1 | LEVEL 2 | TOTAL | |||||||||||||||||
Equities: | |||||||||||||||||||||
U.S. equities | $ | 585.5 | $ | 585.5 | |||||||||||||||||
Global equities | 661.7 | 661.7 | |||||||||||||||||||
Total equities | 50 - 70 | % | 1,247.20 | 1,247.20 | |||||||||||||||||
Fixed income: | |||||||||||||||||||||
U.S. fixed income | $ | 252.5 | 299.6 | 552.1 | |||||||||||||||||
Non-U.S. fixed income | 260.3 | 260.3 | |||||||||||||||||||
Total fixed income | 30 - 50 | % | 252.5 | 559.9 | 812.4 | ||||||||||||||||
Cash and other | 1.2 | 47.6 | 48.8 | ||||||||||||||||||
Total plan assets | $ | 253.7 | $ | 1,854.70 | $ | 2,108.40 | |||||||||||||||
The following additional data relates to all pension plans of the Company: | |||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Weighted average assumptions: | |||||||||||||||||||||
Discount rate | 3.8 | % | 4.7 | % | |||||||||||||||||
Rate of increase in future compensation levels | 3.8 | % | 3.9 | % | |||||||||||||||||
Assumed long-term rate of return on plan assets | 6.5 | % | 6.6 | % | |||||||||||||||||
The components of the change in projected benefit obligation and change in plan assets are as follows: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||
Benefit obligation at January 1 | $ | 1,961.60 | $ | 2,068.00 | |||||||||||||||||
Service cost | 67.3 | 73.5 | |||||||||||||||||||
Interest cost | 91.8 | 81 | |||||||||||||||||||
Benefits paid | (72.5 | ) | (68.4 | ) | |||||||||||||||||
Actuarial loss (gain) | 412.8 | (199.2 | ) | ||||||||||||||||||
Currency translation and other | (47.6 | ) | 3.2 | ||||||||||||||||||
Participant contributions | 4 | 3.5 | |||||||||||||||||||
Projected benefit obligation at December 31 | $ | 2,417.40 | $ | 1,961.60 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 2,108.40 | $ | 1,901.00 | |||||||||||||||||
Employer contributions | 81.1 | 26.2 | |||||||||||||||||||
Actual return on plan assets | 235.8 | 242.5 | |||||||||||||||||||
Benefits paid | (72.5 | ) | (68.4 | ) | |||||||||||||||||
Currency translation and other | (47.4 | ) | 3.6 | ||||||||||||||||||
Participant contributions | 4 | 3.5 | |||||||||||||||||||
Fair value of plan assets at December 31 | $ | 2,309.40 | $ | 2,108.40 | |||||||||||||||||
Funded status at December 31 | $ | (108.0 | ) | $ | 146.8 | ||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Amounts recorded on balance sheet: | |||||||||||||||||||||
Other noncurrent assets | $ | 15 | $ | 217.7 | |||||||||||||||||
Other liabilities | 123 | 70.9 | |||||||||||||||||||
Accumulated other comprehensive (loss) income: | |||||||||||||||||||||
Actuarial loss | 428.9 | 257 | |||||||||||||||||||
Prior service cost | 3.9 | 4.9 | |||||||||||||||||||
Net initial transition amount | 0.3 | 0.3 | |||||||||||||||||||
Of the December 31, 2014 amounts in accumulated other comprehensive (loss) income, $40.8 of unrecognized actuarial loss and $1.3 of unrecognized prior service cost are expected to be amortized into net pension expense in 2015. | |||||||||||||||||||||
The accumulated benefit obligation for all pension plans of the Company was $2,113.7 and $1,742.2 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
Information for all plans with an accumulated benefit obligation in excess of plan assets is as follows: | |||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Projected benefit obligation | $ | 224.2 | $ | 78.6 | |||||||||||||||||
Accumulated benefit obligation | 212.1 | 63.4 | |||||||||||||||||||
Fair value of plan assets | 139.1 | 9.2 | |||||||||||||||||||
The components of pension expense are as follows: | |||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||
Service cost | $ | 67.3 | $ | 73.5 | $ | 64.1 | |||||||||||||||
Interest on projected benefit obligation | 91.8 | 81 | 81.4 | ||||||||||||||||||
Expected return on assets | (128.0 | ) | (119.4 | ) | (110.8 | ) | |||||||||||||||
Amortization of prior service costs | 1.2 | 1.3 | 1.4 | ||||||||||||||||||
Recognized actuarial loss | 20.8 | 44 | 39.2 | ||||||||||||||||||
Curtailment gain | (.3 | ) | |||||||||||||||||||
Settlement loss | 4.8 | ||||||||||||||||||||
Net pension expense | $ | 53.1 | $ | 80.1 | $ | 80.1 | |||||||||||||||
Multi-employer Plans: The Company participates in multi-employer plans in the U.S. and Europe. These are typically under collective bargaining agreements and cover its union-represented employees. The Company’s participation in the following multi-employer plans for the years ended December 31 are as follows: | |||||||||||||||||||||
PENSION | COMPANY CONTRIBUTIONS | ||||||||||||||||||||
PLAN | |||||||||||||||||||||
PENSION PLAN | EIN | NUMBER | 2014 | 2013 | 2012 | ||||||||||||||||
Metal and Electrical Engineering Industry Pension Fund | 135668 | $ | 27.1 | $ | 24.5 | $ | 22 | ||||||||||||||
Western Metal Industry Pension Plan | 91-6033499 | 1 | 2 | 1.5 | 1.6 | ||||||||||||||||
Other plans | 1 | 0.9 | 1 | ||||||||||||||||||
$ | 30.1 | $ | 26.9 | $ | 24.6 | ||||||||||||||||
The Company contributions shown in the table above approximates the multi-employer pension expense for each of the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
Metal and Electrical Engineering Industry Pension Fund is a multi-employer union plan incorporating all DAF employees in the Netherlands and is covered by a collective bargaining agreement that will expire on April 30, 2015. The Company’s contributions were less than 5% of the total contributions to the plan for the last two reporting periods ending December 2014. The plan is required by law (the Netherlands Pension Act) to have a coverage ratio in excess of 104.3%. Because the coverage ratio of the plan was 104.1% at December 31, 2014, a funding improvement plan is in place. | |||||||||||||||||||||
The Western Metal Industry Pension Plan is located in the U.S. and is covered by a collective bargaining agreement that will expire on November 1, 2015. In accordance with the U.S. Pension Protection Act of 2006, the plan was certified as critical (red) status and a funding improvement plan was implemented requiring additional contributions through 2022 as long as the plan remains in critical status. For the last two reporting periods ending December 2014, contributions by the Company were greater than 5% and less than 12% of the total contributions to the plan. | |||||||||||||||||||||
Other plans are principally located in the U.S. For the last two reporting periods, none were under funding improvement plans and Company contributions to these plans are less than 5% of each plan’s total contributions. | |||||||||||||||||||||
There were no significant changes for the multi-employer plans in the periods presented that affected comparability between periods. | |||||||||||||||||||||
Defined Contribution Plans: The Company maintains several defined contribution benefit plans whereby it contributes designated amounts on behalf of participant employees. The largest plan is for U.S. salaried employees where the Company matches a percentage of employee contributions up to an annual limit. The match was 5% of eligible pay in 2014, 2013 and 2012. Other plans are located in Australia, Brasil, Canada, the Netherlands, Belgium and Germany. Expenses for these plans were $36.3, $34.0 and $33.6 in 2014, 2013 and 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | M. | INCOME TAXES | |||||||||||
The Company’s tax rate is based on income and statutory tax rates in the various jurisdictions in which the Company operates. Tax law requires certain items to be included in the Company’s tax returns at different times than the items reflected in the Company’s financial statements. As a result, the Company’s annual tax rate reflected in its financial statements is different than that reported in its tax returns. Some of these differences are permanent, such as expenses that are not deductible in the Company’s tax return, and some differences reverse over time, such as depreciation expense. These temporary differences create deferred tax assets and liabilities. The Company establishes valuation allowances for its deferred tax assets if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||
The components of the Company’s income before income taxes include the following: | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 1,267.30 | $ | 827 | $ | 786.6 | |||||||
Foreign | 750.3 | 868 | 842.3 | ||||||||||
$ | 2,017.60 | $ | 1,695.00 | $ | 1,628.90 | ||||||||
The components of the Company’s provision for income taxes include the following: | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Current provision: | |||||||||||||
Federal | $ | 482.4 | $ | 191.4 | $ | 126.2 | |||||||
State | 59 | 20.9 | 31.5 | ||||||||||
Foreign | 215.4 | 214.1 | 207.9 | ||||||||||
756.8 | 426.4 | 365.6 | |||||||||||
Deferred (benefit) provision: | |||||||||||||
Federal | (88.3 | ) | 68.8 | 134.4 | |||||||||
State | 0.3 | 18.4 | 9.5 | ||||||||||
Foreign | (10.0 | ) | 10.1 | 7.8 | |||||||||
(98.0 | ) | 97.3 | 151.7 | ||||||||||
$ | 658.8 | $ | 523.7 | $ | 517.3 | ||||||||
Tax benefits recognized for net operating loss carryforwards were $16.0, $4.5 and $3.2 for the years ended 2014, 2013 and 2012, respectively. | |||||||||||||
A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Effect of: | |||||||||||||
State | 2 | 1.3 | 1.4 | ||||||||||
Federal domestic production deduction | (1.8 | ) | (.9 | ) | (.9 | ) | |||||||
Tax on foreign earnings | (1.6 | ) | (3.8 | ) | (3.1 | ) | |||||||
Other, net | (.9 | ) | (.7 | ) | (.6 | ) | |||||||
32.7 | % | 30.9 | % | 31.8 | % | ||||||||
The Company has not provided a deferred tax liability for the temporary differences of approximately $4,100.0 related to the investments in foreign subsidiaries that are considered to be indefinitely reinvested. The amount of the deferred tax liability would be approximately $400.0 as of December 31, 2014. | |||||||||||||
Included in domestic taxable income for 2014, 2013 and 2012 are $249.0, $241.7 and $256.0 of foreign earnings, respectively, which are not indefinitely reinvested, for which domestic taxes of $18.6, $19.5 and $22.1, respectively, were provided to account for the difference between the domestic and foreign tax rate on those earnings. | |||||||||||||
At December 31, 2014, the Company had net operating loss carryforwards of $460.4, of which $206.2 related to foreign subsidiaries and $254.2 related to states in the U.S. The related deferred tax asset was $65.8. The carryforward periods range from five years to indefinite, subject to certain limitations under applicable laws. The future tax benefits of net operating loss carryforwards are evaluated on a regular basis, including a review of historical and projected operating results. | |||||||||||||
The tax effects of temporary differences representing deferred tax assets and liabilities are as follows: | |||||||||||||
At December 31, | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Accrued expenses | $ | 215.9 | $ | 188.4 | |||||||||
Net operating loss and tax credit carryforwards | 67.2 | 78.2 | |||||||||||
Postretirement benefit plans | 43.3 | ||||||||||||
Allowance for losses on receivables | 43 | 47 | |||||||||||
Other | 112.1 | 88.4 | |||||||||||
481.5 | 402 | ||||||||||||
Valuation allowance | (30.3 | ) | (43.9 | ) | |||||||||
451.2 | 358.1 | ||||||||||||
Liabilities: | |||||||||||||
Financial Services leasing depreciation | (817.2 | ) | (851.8 | ) | |||||||||
Depreciation and amortization | (289.2 | ) | (296.1 | ) | |||||||||
Postretirement benefit plans | (51.3 | ) | |||||||||||
Other | (33.5 | ) | (5.4 | ) | |||||||||
(1,139.9 | ) | (1,204.6 | ) | ||||||||||
Net deferred tax liability | $ | (688.7 | ) | $ | (846.5 | ) | |||||||
The balance sheet classification of the Company’s deferred tax assets and liabilities are as follows: | |||||||||||||
At December 31, | 2014 | 2013 | |||||||||||
Truck, Parts and Other: | |||||||||||||
Other current assets | $ | 134.8 | $ | 122.2 | |||||||||
Other noncurrent assets, net | 16 | 33.1 | |||||||||||
Accounts payable, accrued expenses and other | (.9 | ) | (.6 | ) | |||||||||
Other liabilities | (87.2 | ) | (218.7 | ) | |||||||||
Financial Services: | |||||||||||||
Other assets | 75 | 77.2 | |||||||||||
Deferred taxes and other liabilities | (826.4 | ) | (859.7 | ) | |||||||||
Net deferred tax liability | $ | (688.7 | ) | $ | (846.5 | ) | |||||||
Cash paid for income taxes was $689.9, $434.0 and $448.2 in 2014, 2013 and 2012, respectively. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 13.1 | $ | 23.4 | $ | 18.3 | |||||||
Additions for tax positions related to the current year | 0.9 | 1 | 1 | ||||||||||
Additions for tax positions related to prior years | 0.1 | 0.3 | 9.9 | ||||||||||
Reductions for tax positions related to prior years | (.9 | ) | (.7 | ) | (5.2 | ) | |||||||
Reductions related to settlements | (9.7 | ) | (.3 | ) | |||||||||
Lapse of statute of limitations | (1.2 | ) | (1.2 | ) | (.3 | ) | |||||||
Balance at December 31 | $ | 12 | $ | 13.1 | $ | 23.4 | |||||||
The Company had $12.0, $13.1 and $23.4 of unrecognized tax benefits, of which $1.1, $1.5 and $1.9 would impact the effective tax rate, if recognized, as of December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The Company recognized $.8 of income, $1.1 of income and $1.0 of expense related to interest and penalties in 2014, 2013 and 2012, respectively. Accrued interest expense and penalties were $4.7, $5.5 and $6.7 as of December 31, 2014, 2013 and 2012, respectively. Interest and penalties are classified as income taxes in the Consolidated Statements of Income. | |||||||||||||
The Company believes it is reasonably possible that approximately $7 to $8 of unrecognized tax benefits, resulting primarily from intercompany transactions, will be resolved within the next twelve months from Competent Authority negotiations between tax authorities of two jurisdictions; the Company does not expect the net impact of these negotiations will be material to its effective tax rate. As of December 31, 2014, the United States Internal Revenue Service has completed examinations of the Company’s tax returns for all years through 2010. The Company’s tax returns for other major jurisdictions remain subject to examination for the years ranging from 2004 through 2014. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Stockholders' Equity | N. | STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income: The components of accumulated other comprehensive (loss) income as of December 31, 2014 and 2013 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following: | |||||||||||||||||||||
DERIVATIVE | MARKETABLE | PENSION | FOREIGN | TOTAL | |||||||||||||||||
CONTRACTS | DEBT SECURITIES | PLANS | CURRENCY | ||||||||||||||||||
TRANSLATION | |||||||||||||||||||||
Balance at December 31, 2013 | $ | (15.1 | ) | $ | 1.7 | $ | (262.2 | ) | $ | 284.3 | $ | 8.7 | |||||||||
Recorded into AOCI | 20 | 4.2 | (185.8 | ) | (422.8 | ) | (584.4 | ) | |||||||||||||
Reclassified out of AOCI | (18.4 | ) | (.6 | ) | 14.9 | (4.1 | ) | ||||||||||||||
Net other comprehensive (loss) | 1.6 | 3.6 | (170.9 | ) | (422.8 | ) | (588.5 | ) | |||||||||||||
income | |||||||||||||||||||||
Balance at December 31, 2014 | $ | (13.5 | ) | $ | 5.3 | $ | (433.1 | ) | $ | (138.5 | ) | $ | (579.8 | ) | |||||||
The components of AOCI as of December 31, 2013 and 2012 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following: | |||||||||||||||||||||
DERIVATIVE | MARKETABLE | PENSION | FOREIGN | TOTAL | |||||||||||||||||
CONTRACTS | DEBT SECURITIES | PLANS | CURRENCY | ||||||||||||||||||
TRANSLATION | |||||||||||||||||||||
Balance at December 31, 2012 | $ | (27.2 | ) | $ | 6.6 | $ | (496.5 | ) | $ | 357.6 | $ | (159.5 | ) | ||||||||
Recorded into AOCI | 36.9 | (6.1 | ) | 204.8 | (71.3 | ) | 164.3 | ||||||||||||||
Reclassified out of AOCI | (24.8 | ) | 1.2 | 29.5 | (2.0 | ) | 3.9 | ||||||||||||||
Net other comprehensive (loss) | 12.1 | (4.9 | ) | 234.3 | (73.3 | ) | 168.2 | ||||||||||||||
income | |||||||||||||||||||||
Balance at December 31, 2013 | $ | (15.1 | ) | $ | 1.7 | $ | (262.2 | ) | $ | 284.3 | $ | 8.7 | |||||||||
Reclassifications out of AOCI during the year ended December 31, 2014 are as follows: | |||||||||||||||||||||
AOCI COMPONENTS | LINE ITEM IN THE CONSOLIDATED STATEMENTS OF 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 | $ | 0.3 | ||||||||||||||||||
Interest and other expense (income), net | (2.1 | ) | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Interest-rate contracts | Interest and other borrowing expenses | (21.7 | ) | ||||||||||||||||||
Pre-tax expense reduction | (23.5 | ) | |||||||||||||||||||
Tax expense | 5.1 | ||||||||||||||||||||
After-tax expense reduction | (18.4 | ) | |||||||||||||||||||
Unrealized (gains) and losses on marketable debt securities: | |||||||||||||||||||||
Marketable debt securities | Investment income | (.9 | ) | ||||||||||||||||||
Tax expense | 0.3 | ||||||||||||||||||||
After-tax income increase | (.6 | ) | |||||||||||||||||||
Pension plans: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Actuarial loss | Cost of sales and revenues $11.1, SG&A $9.0 | 20.1 | |||||||||||||||||||
Prior service costs | Cost of sales and revenues $1.0, SG&A $.2 | 1.2 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Actuarial loss | SG&A | 0.7 | |||||||||||||||||||
Pre-tax expense increase | 22 | ||||||||||||||||||||
Tax benefit | (7.1 | ) | |||||||||||||||||||
After-tax expense increase | 14.9 | ||||||||||||||||||||
Total reclassifications out of AOCI | $ | (4.1 | ) | ||||||||||||||||||
Reclassifications out of AOCI during the year ended December 31, 2013 are as follows: | |||||||||||||||||||||
AOCI COMPONENTS | LINE ITEM IN THE CONSOLIDATED STATEMENTS OF 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 | ||||||||||||||||||
Interest and other expense (income), net | (.6 | ) | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Interest-rate contracts | Interest and other borrowing expenses | (36.0 | ) | ||||||||||||||||||
Pre-tax expense reduction | (35.6 | ) | |||||||||||||||||||
Tax expense | 10.8 | ||||||||||||||||||||
After-tax expense reduction | (24.8 | ) | |||||||||||||||||||
Unrealized (gains) and losses on marketable debt securities: | |||||||||||||||||||||
Marketable debt securities | Investment income | 1.7 | |||||||||||||||||||
Tax benefit | (.5 | ) | |||||||||||||||||||
After-tax income decrease | 1.2 | ||||||||||||||||||||
Pension plans: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Actuarial loss | Cost of sales and revenues $21.4, SG&A $20.3 | 41.7 | |||||||||||||||||||
Prior service costs | Cost of sales and revenues $.4, SG&A $.6, R&D $.3 | 1.3 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Actuarial loss | SG&A | 2.3 | |||||||||||||||||||
Pre-tax expense increase | 45.3 | ||||||||||||||||||||
Tax benefit | (15.8 | ) | |||||||||||||||||||
After-tax expense increase | 29.5 | ||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||
Truck, Parts and Other | Interest and other expense (income), net | (1.1 | ) | ||||||||||||||||||
Financial Services | Interest and other borrowing expenses | (.9 | ) | ||||||||||||||||||
Expense reduction | (2.0 | ) | |||||||||||||||||||
Total reclassifications out of AOCI | $ | 3.9 | |||||||||||||||||||
Other Capital Stock Changes: In 2014, the Company purchased .7 million treasury shares. In 2013, there were no purchases or retirements of treasury shares. In 2012, the Company purchased and retired 4.2 million treasury shares. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Derivative Financial Instruments | O. | DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||||
As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rate and foreign currency risk. | |||||||||||||||||||||||||
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 December 31, 2014, the notional amount of the Company’s interest-rate contracts was $3,733.9. Notional maturities for all interest-rate contracts are $1,226.8 for 2015, $1,341.4 for 2016, $633.0 for 2017, $379.9 for 2018, $81.8 for 2019 and $71.0 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 December 31, 2014, the notional amount of the outstanding foreign-exchange contracts was $199.5. 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: | |||||||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||||||
ASSETS | LIABILITIES | ASSETS | LIABILITIES | ||||||||||||||||||||||
Derivatives designated under hedge accounting: | |||||||||||||||||||||||||
Interest-rate contracts: | |||||||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Other assets | $ | 82.7 | $ | 46.3 | |||||||||||||||||||||
Deferred taxes and other liabilities | $ | 45.7 | $ | 67.7 | |||||||||||||||||||||
Foreign-exchange contracts: | |||||||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Other current assets | 1.2 | ||||||||||||||||||||||||
Accounts payable, accrued expenses and other | 1.9 | 0.6 | |||||||||||||||||||||||
Total | $ | 83.9 | $ | 47.6 | $ | 46.3 | $ | 68.3 | |||||||||||||||||
Economic hedges: | |||||||||||||||||||||||||
Foreign-exchange contracts: | |||||||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Other current assets | $ | 1.9 | $ | 0.6 | |||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | 0.9 | $ | 0.2 | |||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Other assets | 3.4 | 1.1 | |||||||||||||||||||||||
Deferred taxes and other liabilities | 0.1 | ||||||||||||||||||||||||
Total | $ | 5.3 | $ | 0.9 | $ | 1.7 | $ | 0.3 | |||||||||||||||||
Gross amounts recognized in Balance Sheet | $ | 89.2 | $ | 48.5 | $ | 48 | $ | 68.6 | |||||||||||||||||
Less amounts not offset in financial instruments: | |||||||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Foreign-exchange contracts | (.9 | ) | (.9 | ) | (.2 | ) | (.2 | ) | |||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Interest-rate contracts | (3.9 | ) | (3.9 | ) | (16.1 | ) | (16.1 | ) | |||||||||||||||||
Pro-forma net amount | $ | 84.4 | $ | 43.7 | $ | 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 Income as follows: | |||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Interest-rate swaps | $ | 0.1 | $ | 0.7 | $ | (3.8 | ) | ||||||||||||||||||
Term notes | (2.6 | ) | (5.1 | ) | 4.5 | ||||||||||||||||||||
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 6.2 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. For the periods ended December 31, 2014, 2013 and 2012, the Company recognized gains on the ineffective portion of nil, $.1 and $.5, respectively. | |||||||||||||||||||||||||
The following table presents the pre-tax effects of derivative instruments recognized in other comprehensive (loss) income (OCI): | |||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
INTEREST- | FOREIGN- | INTEREST- | FOREIGN- | INTEREST- | FOREIGN- | ||||||||||||||||||||
RATE | EXCHANGE | RATE | EXCHANGE | RATE | EXCHANGE | ||||||||||||||||||||
CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | ||||||||||||||||||||
Gain (loss) recognized in OCI: | |||||||||||||||||||||||||
Truck, Parts and Other | $ | 1.7 | $ | (1.2 | ) | $ | (1.3 | ) | |||||||||||||||||
Financial Services | $ | 24.4 | $ | 54.4 | $ | (27.9 | ) | ||||||||||||||||||
Total | $ | 24.4 | $ | 1.7 | $ | 54.4 | $ | (1.2 | ) | $ | (27.9 | ) | $ | (1.3 | ) | ||||||||||
Expense (income) reclassified out of AOCI into income: | |||||||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Cost of sales and revenues | $ | 0.3 | $ | 1 | $ | 3.2 | |||||||||||||||||||
Interest and other expense (income), net | (2.1 | ) | (.6 | ) | 0.2 | ||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Interest and other borrowing expenses | $ | (21.7 | ) | $ | (36.0 | ) | $ | 19.3 | |||||||||||||||||
Total | $ | (21.7 | ) | $ | (1.8 | ) | $ | (36.0 | ) | $ | 0.4 | $ | 19.3 | $ | 3.4 | ||||||||||
The amount of loss recorded in AOCI at December 31, 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 $19.4, net of taxes. The fixed interest earned on finance receivables will offset the amount recognized in interest expense, resulting in a stable interest margin consistent with the Company’s 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: | |||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
INTEREST- | FOREIGN- | INTEREST- | FOREIGN- | INTEREST- | FOREIGN- | ||||||||||||||||||||
RATE | EXCHANGE | RATE | EXCHANGE | RATE | EXCHANGE | ||||||||||||||||||||
CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | ||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Cost of sales and revenues | $ | (5.3 | ) | $ | (1.3 | ) | $ | (.3 | ) | ||||||||||||||||
Interest and other expense (income), net | 3.8 | 0.3 | (.5 | ) | |||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Interest and other borrowing expenses | 4.2 | $ | (1.5 | ) | (9.6 | ) | $ | 1 | 0.6 | ||||||||||||||||
Selling, general and administrative | 5.2 | ||||||||||||||||||||||||
Total | $ | 7.9 | $ | (1.5 | ) | $ | (10.6 | ) | $ | 1 | $ | (.2 | ) | ||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | P. | FAIR VALUE MEASUREMENTS | |||||||||||||||
Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below. | |||||||||||||||||
Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment. | |||||||||||||||||
Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. | |||||||||||||||||
There were no transfers of assets or liabilities between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 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 December 31, 2014 | LEVEL 1 | LEVEL 2 | TOTAL | ||||||||||||||
Assets: | |||||||||||||||||
Marketable debt securities | |||||||||||||||||
U.S. tax-exempt securities | $ | 363.4 | $ | 363.4 | |||||||||||||
U.S. corporate securities | 81.5 | 81.5 | |||||||||||||||
U.S. government and agency securities | $ | 7.7 | 0.3 | 8 | |||||||||||||
Non-U.S. corporate securities | 532 | 532 | |||||||||||||||
Non-U.S. government securities | 194.1 | 194.1 | |||||||||||||||
Other debt securities | 93 | 93 | |||||||||||||||
Total marketable debt securities | $ | 7.7 | $ | 1,264.30 | $ | 1,272.00 | |||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 81.7 | $ | 81.7 | |||||||||||||
Interest-rate swaps | 1 | 1 | |||||||||||||||
Foreign-exchange contracts | 6.5 | 6.5 | |||||||||||||||
Total derivative assets | $ | 89.2 | $ | 89.2 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 31.1 | $ | 31.1 | |||||||||||||
Interest-rate swaps | 14.6 | 14.6 | |||||||||||||||
Foreign-exchange contracts | 2.8 | 2.8 | |||||||||||||||
Total derivative liabilities | $ | 48.5 | $ | 48.5 | |||||||||||||
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: | |||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||
CARRYING | FAIR | CARRYING | FAIR | ||||||||||||||
AMOUNT | VALUE | AMOUNT | VALUE | ||||||||||||||
Assets: | |||||||||||||||||
Financial Services fixed rate loans | $ | 3,627.50 | $ | 3,683.30 | $ | 3,592.70 | $ | 3,627.30 | |||||||||
Liabilities: | |||||||||||||||||
Truck, Parts and Other fixed rate debt | 150 | 151.1 | |||||||||||||||
Financial Services fixed rate debt | 3,713.40 | 3,737.70 | 4,039.10 | 4,087.00 |
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock Compensation Plans | |||||||||||||||||
Q. STOCK COMPENSATION PLANS | |||||||||||||||||
PACCAR has certain plans under which officers and key employees may be granted options to purchase shares of the Company’s authorized but unissued common stock under plans approved by stockholders. Non-employee directors and certain officers may be granted restricted shares of the Company’s common stock under plans approved by stockholders. Options outstanding under these plans were granted with exercise prices equal to the fair market value of the Company’s common stock at the date of grant. Options expire no later than ten years from the grant date and generally vest after three years. Restricted stock awards generally vest over three years or earlier upon meeting certain age and service requirements. | |||||||||||||||||
The Company recognizes compensation cost on these options and restricted stock awards on a straight-line basis over the requisite period the employee is required to render service. The maximum number of shares of the Company’s common stock authorized for issuance under these plans is 46.7 million shares, and as of December 31, 2014, the maximum number of shares available for future grants was 16.1 million. | |||||||||||||||||
The estimated fair value of each option award is determined on the date of grant using the Black-Scholes-Merton option pricing model that uses assumptions noted in the following table. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on historical volatility. The dividend yield is based on an estimated future dividend yield using projected net income for the next five years, implied dividends and Company stock price. The expected term is based on the period of time that options granted are expected to be outstanding based on historical experience. | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 1.51 | % | 0.88 | % | 0.74 | % | |||||||||||
Expected volatility | 34 | % | 44 | % | 47 | % | |||||||||||
Expected dividend yield | 3.4 | % | 3.3 | % | 3.8 | % | |||||||||||
Expected term | 5 years | 5 years | 5 years | ||||||||||||||
Weighted average grant date fair value of options per share | $ | 13.17 | $ | 13.78 | $ | 12.67 | |||||||||||
The fair value of options granted was $8.6, $11.2 and $12.0 for the years ended December 31, 2014, 2013 and 2012, respectively. The fair value of options vested during the years ended December 31, 2014, 2013 and 2012 was $10.5, $8.8 and $8.9, respectively. | |||||||||||||||||
A summary of activity under the Company’s stock plans is presented below: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Intrinsic value of options exercised | $ | 20.9 | $ | 19.6 | $ | 15.4 | |||||||||||
Cash received from stock option exercises | 29.1 | 31 | 13.9 | ||||||||||||||
Tax benefit related to stock award exercises | 4.4 | 3.9 | 4.4 | ||||||||||||||
Stock based compensation | 16.2 | 14 | 13.9 | ||||||||||||||
Tax benefit related to stock based compensation | 5.6 | 4.9 | 4.8 | ||||||||||||||
The summary of options as of December 31, 2014 and changes during the year then ended are presented below: | |||||||||||||||||
NUMBER | PER SHARE | REMAINING | AGGREGATE | ||||||||||||||
OF SHARES | EXERCISE | CONTRACTUAL | INTRINSIC | ||||||||||||||
PRICE* | LIFE IN YEARS* | VALUE | |||||||||||||||
Options outstanding at January 1 | 4,745,200 | $ | 41.11 | ||||||||||||||
Granted | 656,200 | 59.15 | |||||||||||||||
Exercised | (780,700 | ) | 37.21 | ||||||||||||||
Cancelled | (84,000 | ) | 48.46 | ||||||||||||||
Options outstanding at December 31 | 4,536,700 | $ | 44.25 | 5.9 | $ | 107.8 | |||||||||||
Vested and expected to vest | 4,414,300 | $ | 43.95 | 5.82 | $ | 106.2 | |||||||||||
Exercisable | 2,335,800 | $ | 39.42 | 3.9 | $ | 66.8 | |||||||||||
* Weighted Average | |||||||||||||||||
The fair value of restricted shares is determined based upon the stock price on the date of grant. The summary of nonvested restricted shares as of December 31, 2014 and changes during the year then ended is presented below: | |||||||||||||||||
NONVESTED SHARES | NUMBER | GRANT DATE | |||||||||||||||
OF SHARES | FAIR VALUE* | ||||||||||||||||
Nonvested awards outstanding at January 1 | 166,700 | $ | 46.32 | ||||||||||||||
Granted | 112,500 | 59.06 | |||||||||||||||
Vested | (93,500 | ) | 51.17 | ||||||||||||||
Nonvested awards outstanding at December 31 | 185,700 | $ | 51.6 | ||||||||||||||
* Weighted Average | |||||||||||||||||
As of December 31, 2014, there was $8.4 of total unrecognized compensation cost related to nonvested stock options, which is recognized over a remaining weighted average vesting period of 1.47 years. Unrecognized compensation cost related to nonvested restricted stock awards of $1.1 is expected to be recognized over a remaining weighted average vesting period of 1.30 years. | |||||||||||||||||
The dilutive and antidilutive options are shown separately in the table below: | |||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||
Additional shares | 1,120,500 | 932,000 | 730,000 | ||||||||||||||
Antidilutive options | 673,700 | 873,800 | 2,572,000 | ||||||||||||||
A total of 187,500 performance based restricted stock awards were granted in 2008 and 2007 at a weighted average fair value of $43.61. These awards were to vest after five years if the Company’s earnings per share growth over the same five year period met or exceeded certain performance goals. All outstanding awards were forfeited in 2013 and 2012 as the performance goals were not achieved. No matching shares were granted under this program in 2014, 2013 or 2012. |
Segment_and_Related_Informatio
Segment and Related Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment and Related Information | R. | SEGMENT AND RELATED INFORMATION | |||||||||||
PACCAR operates in three principal segments: Truck, Parts and Financial Services. The Company evaluates the performance of its Truck and Parts segments based on operating profits, which excludes investment income, other income and expense and income taxes. The Financial Services segment’s performance is evaluated based on income before income taxes. Geographic revenues from external customers are presented based on the country of the customer. The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A. | |||||||||||||
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 and 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. Intercompany interest income on cash advances to the financial services companies is included in Other and was $.9, $.7 and $.9 for 2014, 2013 and 2012, respectively. | |||||||||||||
Geographic Area Data | 2014 | 2013 | 2012 | ||||||||||
Revenues: | |||||||||||||
United States | $ | 10,106.30 | $ | 8,147.60 | $ | 8,234.80 | |||||||
Europe | 4,835.70 | 4,967.20 | 4,282.30 | ||||||||||
Other | 4,055.00 | 4,009.00 | 4,533.40 | ||||||||||
$ | 18,997.00 | $ | 17,123.80 | $ | 17,050.50 | ||||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 1,132.00 | $ | 1,183.10 | $ | 1,182.50 | |||||||
The Netherlands | 517.4 | 620 | 529.7 | ||||||||||
Other | 663.9 | 710.2 | 600.7 | ||||||||||
$ | 2,313.30 | $ | 2,513.30 | $ | 2,312.90 | ||||||||
Equipment on operating leases, net: | |||||||||||||
United States | $ | 1,226.60 | $ | 1,153.80 | $ | 1,019.70 | |||||||
Germany | 347 | 404.1 | 390.8 | ||||||||||
United Kingdom | 342.2 | 414.9 | 425.3 | ||||||||||
Other | 1,324.70 | 1,355.60 | 1,052.90 | ||||||||||
$ | 3,240.50 | $ | 3,328.40 | $ | 2,888.70 | ||||||||
Business Segment Data | 2014 | 2013 | 2012 | ||||||||||
Net sales and revenues: | |||||||||||||
Truck | $ | 15,330.40 | $ | 13,627.70 | $ | 13,797.10 | |||||||
Less intersegment | (736.4 | ) | (624.8 | ) | (665.6 | ) | |||||||
External customers | 14,594.00 | 13,002.90 | 13,131.50 | ||||||||||
Parts | 3,125.90 | 2,868.30 | 2,712.10 | ||||||||||
Less intersegment | (48.4 | ) | (46.1 | ) | (44.6 | ) | |||||||
External customers | 3,077.50 | 2,822.20 | 2,667.50 | ||||||||||
Other | 121.3 | 123.8 | 152.7 | ||||||||||
17,792.80 | 15,948.90 | 15,951.70 | |||||||||||
Financial Services | 1,204.20 | 1,174.90 | 1,098.80 | ||||||||||
$ | 18,997.00 | $ | 17,123.80 | $ | 17,050.50 | ||||||||
Income before income taxes: | |||||||||||||
Truck | $ | 1,160.10 | $ | 936.7 | $ | 920.4 | |||||||
Parts | 496.7 | 416 | 374.6 | ||||||||||
Other | (31.9 | ) | (26.5 | ) | (7.0 | ) | |||||||
1,624.90 | 1,326.20 | 1,288.00 | |||||||||||
Financial Services | 370.4 | 340.2 | 307.8 | ||||||||||
Investment income | 22.3 | 28.6 | 33.1 | ||||||||||
$ | 2,017.60 | $ | 1,695.00 | $ | 1,628.90 | ||||||||
Depreciation and amortization: | |||||||||||||
Truck | $ | 415 | $ | 352.9 | $ | 308.8 | |||||||
Parts | 5.9 | 5.3 | 5.9 | ||||||||||
Other | 11.8 | 10.2 | 10.6 | ||||||||||
432.7 | 368.4 | 325.3 | |||||||||||
Financial Services | 485 | 442.3 | 375.6 | ||||||||||
$ | 917.7 | $ | 810.7 | $ | 700.9 | ||||||||
Expenditures for long-lived assets: | |||||||||||||
Truck | $ | 504.9 | $ | 812.9 | $ | 816 | |||||||
Parts | 9.9 | 6.8 | 17.1 | ||||||||||
Other | 12.1 | 20.8 | 22.8 | ||||||||||
526.9 | 840.5 | 855.9 | |||||||||||
Financial Services | 935.3 | 931.2 | 943.1 | ||||||||||
$ | 1,462.20 | $ | 1,771.70 | $ | 1,799.00 | ||||||||
Segment assets: | |||||||||||||
Truck | $ | 4,871.10 | $ | 5,123.30 | $ | 4,530.20 | |||||||
Parts | 787.2 | 748.4 | 707.8 | ||||||||||
Other | 106.1 | 298.5 | 198.4 | ||||||||||
Cash and marketable securities | 2,937.10 | 2,925.20 | 2,395.90 | ||||||||||
8,701.50 | 9,095.40 | 7,832.30 | |||||||||||
Financial Services | 11,917.30 | 11,630.10 | 10,795.50 | ||||||||||
$ | 20,618.80 | $ | 20,725.50 | $ | 18,627.80 | ||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Description of Operations | Description of Operations: PACCAR Inc (the Company or PACCAR) is a multinational company operating in three principal segments: (1) the Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks; (2) the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles; and (3) the Financial Services segment (PFS) derives its earnings primarily from financing or leasing PACCAR products in the U.S., Canada, Mexico, Europe and Australia. PACCAR’s sales and revenues are derived primarily from North America and Europe. The Company also operates in Australia and Brasil and sells trucks and parts to customers in Asia, Africa, Middle East and South America. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition: |
Truck, Parts and Other: Substantially all sales and revenues of trucks and related aftermarket parts are recorded by the Company when products are shipped to dealers or customers, except for certain truck shipments that are subject to a residual value guarantee to the customer. Revenues related to these shipments are generally recognized on a straight-line basis over the guarantee period (see Note E). At the time certain truck and parts sales to a dealer are recognized, the Company records an estimate of any future sales incentive costs related to such sales. The estimate is based on historical data and announced incentive programs. In the Truck and Parts segments, the Company grants extended payment terms on selected receivables. Interest is charged for the period beyond standard payment terms. Interest income is recorded as earned. | |
Financial Services: Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts, generally 36 to 60 months, using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. Rental revenues for the years ended December 31, 2014, 2013 and 2012 were $681.5, $631.7 and $551.5, respectively. Depreciation and related leased unit operating expenses were $544.0, $503.5 and $434.9 for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at December 31, 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. | |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash equivalents consist of liquid investments with a maturity at date of purchase of 90 days or less. |
Marketable Debt Securities | 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. | |
Receivables | Receivables: |
Trade and Other Receivables: The Company’s trade and other receivables are recorded at cost, net of allowances. At December 31, 2014 and 2013, respectively, trade and other receivables include trade receivables from dealers and customers of $882.2 and $847.6 and other receivables of $165.0 and $172.0 relating primarily to value added tax receivables and supplier allowances and rebates. | |
Finance and Other Receivables: | |
Loans – Loans represent fixed or floating-rate loans to customers collateralized by the vehicles purchased and are recorded at amortized cost. | |
Finance leases – Finance leases are retail direct financing leases and sales-type finance leases, which lease equipment to retail customers and dealers. These leases are reported as the sum of minimum lease payments receivable and estimated residual value of the property subject to the contracts, reduced by unearned interest which is shown separately. | |
Dealer wholesale financing – Dealer wholesale financing is floating-rate wholesale loans to PACCAR dealers for new and used trucks and are recorded at amortized cost. The loans are collateralized by the trucks being financed. | |
Operating lease and other trade receivables – Operating lease and other trade receivables are monthly rentals due on operating leases, interest on loans and other amounts due within one year in the normal course of business. | |
Allowance for Credit Losses | Allowance for Credit Losses: |
Truck, Parts and Other: The Company historically has not experienced significant losses or past due amounts on trade and other receivables in its Truck, Parts and Other businesses. The Company’s Truck, Parts and Other trade receivable past dues are determined based on contractual payment terms. Accounts are considered past due once the unpaid balance is over 30 days outstanding. Accounts are charged-off against the allowance for credit losses when, in the judgment of management, they are considered to be uncollectible. The allowance for credit losses for Truck, Parts and Other was $1.9 and $2.4 for the years ended December 31, 2014 and 2013, respectively. Net charge-offs were $.2, $.2 and $.3 for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Financial Services: 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. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. | |
On average, modifications extended contractual terms by approximately five 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 December 31, 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 (TDR). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs. | |
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. | |
Inventories | 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. Cost of sales and revenues include shipping and handling costs incurred to deliver products to dealers and customers. |
Equipment on Operating Lease | Equipment on Operating Leases: The Company’s Financial Services segment leases equipment under operating leases to its customers. In addition, in the Truck segment, equipment sold to customers in Europe subject to a residual value guarantee (RVG) by the Company is generally accounted for as an operating lease. Equipment is recorded at cost and is depreciated on the straight-line basis to the lower of the estimated residual value or guarantee value. Lease and guarantee periods generally range from three to five years. Estimated useful lives of the equipment range from four to nine years. The Company reviews residual values of equipment on operating leases periodically to determine that recorded amounts are appropriate. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost. Depreciation is computed principally by the straight-line method based on the estimated useful lives of the various classes of assets. Certain production tooling is amortized on a unit of production basis. |
Long-lived Assets and Goodwill | Long-lived Assets and Goodwill: The Company evaluates the carrying value of property, plant and equipment when events and circumstances warrant a review. Goodwill is tested for impairment at least on an annual basis. There were no impairment charges for the three years ended December 31, 2014. Goodwill was $128.6 and $144.6 at December 31, 2014 and 2013, respectively. The decrease in value is due to currency translation. |
Product Support Liabilities | 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 | 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 December 31, 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. | |
Foreign Currency Translation | Foreign Currency Translation: For most of the Company’s foreign subsidiaries, the local currency is the functional currency. All assets and liabilities are translated at year-end exchange rates and all income statement amounts are translated at the weighted average rates for the period. Translation adjustments are recorded in accumulated other comprehensive (loss) income. The Company uses the U.S. dollar as the functional currency for all but one of its Mexican subsidiaries, which uses the local currency. For the U.S. functional currency entities in Mexico, inventories, cost of sales, property, plant and equipment and depreciation are remeasured at historical rates and resulting adjustments are included in net income. |
Earnings Per Share | 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. |
New Accounting Pronouncements | 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. |
Investment_in_Marketable_Debt_1
Investment in Marketable Debt Securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Marketable Debt Securities | Marketable debt securities consisted of the following at December 31: | ||||||||||||||||
2014 | AMORTIZED | UNREALIZED | UNREALIZED | FAIR | |||||||||||||
COST | GAINS | LOSSES | VALUE | ||||||||||||||
U.S. tax-exempt securities | $ | 362.9 | $ | 0.8 | $ | 0.3 | $ | 363.4 | |||||||||
U.S. corporate securities | 80.9 | 0.6 | 81.5 | ||||||||||||||
U.S. government and agency securities | 8 | 8 | |||||||||||||||
Non-U.S. corporate securities | 528.1 | 3.9 | 532 | ||||||||||||||
Non-U.S. government securities | 192.1 | 2 | 194.1 | ||||||||||||||
Other debt securities | 92.8 | 0.3 | 0.1 | 93 | |||||||||||||
$ | 1,264.80 | $ | 7.6 | $ | 0.4 | $ | 1,272.00 | ||||||||||
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: | ||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||
LESS THAN | TWELVE MONTHS | LESS THAN | TWELVE MONTHS | ||||||||||||||
TWELVE MONTHS | OR GREATER | TWELVE MONTHS | OR GREATER | ||||||||||||||
Fair value | $ | 249.6 | $ | 388.3 | $ | 28.4 | |||||||||||
Unrealized losses | 0.4 | 0.9 | 0.1 | ||||||||||||||
Contractual Maturities of Debt Securities | Contractual maturities at December 31, 2014 were as follows: | ||||||||||||||||
Maturities: | AMORTIZED | FAIR | |||||||||||||||
COST | VALUE | ||||||||||||||||
Within one year | $ | 423.6 | $ | 424.1 | |||||||||||||
One to five years | 841.2 | 847.9 | |||||||||||||||
$ | 1,264.80 | $ | 1,272.00 | ||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories Table | |||||||||
Inventories include the following: | |||||||||
At December 31, | 2014 | 2013 | |||||||
Finished products | $ | 512.3 | $ | 440.6 | |||||
Work in process and raw materials | 587.7 | 545.2 | |||||||
1,100.00 | 985.8 | ||||||||
Less LIFO reserve | (174.3 | ) | (172.2 | ) | |||||
$ | 925.7 | $ | 813.6 | ||||||
Finance_and_Other_Receivables_
Finance and Other Receivables (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||
Finance and Other Receivables | |||||||||||||||||||||
Finance and other receivables include the following: | |||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Loans | $ | 3,968.50 | $ | 3,977.40 | |||||||||||||||||
Direct financing leases | 2,752.80 | 2,680.80 | |||||||||||||||||||
Sales-type finance leases | 972.8 | 921.1 | |||||||||||||||||||
Dealer wholesale financing | 1,755.80 | 1,616.50 | |||||||||||||||||||
Operating lease and other trade receivables | 99.5 | 121.3 | |||||||||||||||||||
Unearned interest: Finance leases | (384.8 | ) | (375.7 | ) | |||||||||||||||||
$ | 9,164.60 | $ | 8,941.40 | ||||||||||||||||||
Less allowance for losses: | |||||||||||||||||||||
Loans and leases | (105.5 | ) | (110.9 | ) | |||||||||||||||||
Dealer wholesale financing | (9.0 | ) | (10.4 | ) | |||||||||||||||||
Operating lease and other trade receivables | (7.5 | ) | (8.0 | ) | |||||||||||||||||
$ | 9,042.60 | $ | 8,812.10 | ||||||||||||||||||
Annual Minimum Payments Due on Finance Receivables | Annual minimum payments due on finance receivables are as follows: | ||||||||||||||||||||
Beginning January 1, 2015 | LOANS | FINANCE | |||||||||||||||||||
LEASES | |||||||||||||||||||||
2015 | $ | 1,251.20 | $ | 1,066.90 | |||||||||||||||||
2016 | 1,032.10 | 905.7 | |||||||||||||||||||
2017 | 815.3 | 691.6 | |||||||||||||||||||
2018 | 523.8 | 448 | |||||||||||||||||||
2019 | 296.2 | 265.7 | |||||||||||||||||||
Thereafter | 49.9 | 143.7 | |||||||||||||||||||
$ | 3,968.50 | $ | 3,521.60 | ||||||||||||||||||
Allowance for Credit Losses | |||||||||||||||||||||
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 | 0.3 | (1.4 | ) | 14.8 | 1.7 | 15.4 | |||||||||||||||
Charge-offs | (.9 | ) | (18.2 | ) | (2.2 | ) | (21.3 | ) | |||||||||||||
Recoveries | 4.6 | 0.7 | 5.3 | ||||||||||||||||||
Currency translation and other | (.8 | ) | (.1 | ) | (5.1 | ) | (.7 | ) | (6.7 | ) | |||||||||||
Balance at December 31 | $ | 9 | $ | 11.9 | $ | 93.6 | $ | 7.5 | $ | 122 | |||||||||||
2013 | |||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
WHOLESALE | RETAIL | RETAIL | OTHER* | TOTAL | |||||||||||||||||
Balance at January 1 | $ | 11.8 | $ | 13.4 | $ | 99.2 | $ | 5.6 | $ | 130 | |||||||||||
Provision for losses | (.9 | ) | 0.2 | 9.8 | 3.8 | 12.9 | |||||||||||||||
Charge-offs | (.5 | ) | (21.2 | ) | (2.8 | ) | (24.5 | ) | |||||||||||||
Recoveries | 9.9 | 1 | 10.9 | ||||||||||||||||||
Currency translation and other | (.2 | ) | (.2 | ) | 0.4 | ||||||||||||||||
Balance at December 31 | $ | 10.4 | $ | 13.4 | $ | 97.5 | $ | 8 | $ | 129.3 | |||||||||||
* | Operating lease and other trade receivables. | ||||||||||||||||||||
2012 | |||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
WHOLESALE | RETAIL | RETAIL | OTHER* | TOTAL | |||||||||||||||||
Balance at January 1 | $ | 11.7 | $ | 12 | $ | 106.5 | $ | 8.8 | $ | 139 | |||||||||||
Provision for losses | 1.8 | 1.4 | 13.1 | 3.7 | 20 | ||||||||||||||||
Charge-offs | (32.1 | ) | (6.6 | ) | (38.7 | ) | |||||||||||||||
Recoveries | 7 | 0.4 | 7.4 | ||||||||||||||||||
Currency translation and other | (1.7 | ) | 4.7 | (.7 | ) | 2.3 | |||||||||||||||
Balance at December 31 | $ | 11.8 | $ | 13.4 | $ | 99.2 | $ | 5.6 | $ | 130 | |||||||||||
* Operating lease and other trade receivables. | |||||||||||||||||||||
Finance Receivables Summary by those Evaluated Individually and Collectively | Information regarding finance receivables evaluated and determined individually and collectively is as follows: | ||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
At December 31, 2014 | WHOLESALE | RETAIL | RETAIL | TOTAL | |||||||||||||||||
Recorded investment for impaired finance receivables | $ | 4.9 | $ | 43.7 | $ | 48.6 | |||||||||||||||
evaluated individually | |||||||||||||||||||||
Allowance for impaired finance receivables determined | 0.5 | 4.6 | 5.1 | ||||||||||||||||||
individually | |||||||||||||||||||||
Recorded investment for finance receivables evaluated | 1,750.90 | $ | 1,606.50 | 5,659.10 | 9,016.50 | ||||||||||||||||
collectively | |||||||||||||||||||||
Allowance for finance receivables determined | 8.5 | 11.9 | 89 | 109.4 | |||||||||||||||||
collectively | |||||||||||||||||||||
DEALER | CUSTOMER | ||||||||||||||||||||
At December 31, 2013 | WHOLESALE | RETAIL | RETAIL | TOTAL | |||||||||||||||||
Recorded investment for impaired finance receivables | $ | 8.5 | $ | 42.1 | $ | 50.6 | |||||||||||||||
evaluated individually | |||||||||||||||||||||
Allowance for impaired finance receivables determined | 1.4 | 5.9 | 7.3 | ||||||||||||||||||
individually | |||||||||||||||||||||
Recorded investment for finance receivables evaluated | 1,608.00 | $ | 1,525.60 | 5,635.90 | 8,769.50 | ||||||||||||||||
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: | ||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Dealer: | |||||||||||||||||||||
Wholesale | $ | 4.9 | $ | 8 | |||||||||||||||||
Customer retail: | |||||||||||||||||||||
Fleet | 34.4 | 30.5 | |||||||||||||||||||
Owner/operator | 8.9 | 8.6 | |||||||||||||||||||
$ | 48.2 | $ | 47.1 | ||||||||||||||||||
Impaired Loans and Specific Reserve | The recorded investment of impaired loans as of December 31, 2014 and 2013 was not significantly different than the unpaid principal balance. | ||||||||||||||||||||
DEALER | CUSTOMER RETAIL | ||||||||||||||||||||
At December 31, 2014 | WHOLESALE | RETAIL | FLEET | OWNER/ | TOTAL | ||||||||||||||||
OPERATOR | |||||||||||||||||||||
Impaired loans with a specific reserve | $ | 0.5 | $ | 12.7 | $ | 2.6 | $ | 15.8 | |||||||||||||
Associated allowance | (.5 | ) | (1.5 | ) | (.5 | ) | (2.5 | ) | |||||||||||||
Net carrying amount of impaired loans | $ | 11.2 | $ | 2.1 | $ | 13.3 | |||||||||||||||
Average recorded investment | $ | 8.8 | $ | 22.5 | $ | 2.8 | $ | 34.1 | |||||||||||||
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 | $ | 5.8 | $ | 28.9 | $ | 5 | $ | 39.7 | |||||||||||||
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: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Interest income recognized: | |||||||||||||||||||||
Dealer wholesale | $ | 0.1 | $ | 0.1 | $ | 0.1 | |||||||||||||||
Customer retail - fleet | 1.2 | 2.9 | 1.2 | ||||||||||||||||||
Customer retail - owner/operator | 0.4 | 0.9 | 0.8 | ||||||||||||||||||
$ | 1.7 | $ | 3.9 | $ | 2.1 | ||||||||||||||||
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 December 31, 2014 | WHOLESALE | RETAIL | FLEET | OWNER/ | TOTAL | ||||||||||||||||
OPERATOR | |||||||||||||||||||||
Performing | $ | 1,739.50 | $ | 1,606.40 | $ | 4,430.90 | $ | 1,193.90 | $ | 8,970.70 | |||||||||||
Watch | 11.4 | 0.1 | 21.8 | 12.5 | 45.8 | ||||||||||||||||
At-risk | 4.9 | 34.8 | 8.9 | 48.6 | |||||||||||||||||
$ | 1,755.80 | $ | 1,606.50 | $ | 4,487.50 | $ | 1,215.30 | $ | 9,065.10 | ||||||||||||
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 December 31, 2014 | WHOLESALE | RETAIL | FLEET | OWNER/ | TOTAL | ||||||||||||||||
OPERATOR | |||||||||||||||||||||
Current and up to 30 days past due | $ | 1,752.90 | $ | 1,606.50 | $ | 4,464.40 | $ | 1,200.00 | $ | 9,023.80 | |||||||||||
31 – 60 days past due | 0.6 | 10.6 | 6.9 | 18.1 | |||||||||||||||||
Greater than 60 days past due | 2.3 | 12.5 | 8.4 | 23.2 | |||||||||||||||||
$ | 1,755.80 | $ | 1,606.50 | $ | 4,487.50 | $ | 1,215.30 | $ | 9,065.10 | ||||||||||||
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: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
RECORDED INVESTMENT | RECORDED INVESTMENT | ||||||||||||||||||||
PRE-MODIFICATION | POST-MODIFICATION | PRE-MODIFICATION | POST-MODIFICATION | ||||||||||||||||||
Fleet | $ | 24.4 | $ | 24.1 | $ | 11.4 | $ | 11.2 | |||||||||||||
Owner/operator | 2.3 | 2.3 | 2.4 | 2.4 | |||||||||||||||||
$ | 26.7 | $ | 26.4 | $ | 13.8 | $ | 13.6 | ||||||||||||||
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) in the year ended by portfolio class are as follows: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fleet | $ | 0.7 | $ | 4.6 | |||||||||||||||||
Owner/operator | 0.2 | 0.7 | |||||||||||||||||||
$ | 0.9 | $ | 5.3 | ||||||||||||||||||
Equipment_On_Operating_Leases_
Equipment On Operating Leases (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Leases, Operating [Abstract] | |||||||||||||||||||||
Equipment on Operating Leases for Truck Parts and Other Segment and for Financial Services Segment | A summary of equipment on operating leases for Truck, Parts and Other and for the Financial Services segment is as follows: | ||||||||||||||||||||
TRUCK, PARTS AND OTHER | FINANCIAL SERVICES | ||||||||||||||||||||
At December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Equipment on operating leases | $ | 1,222.90 | $ | 1,357.80 | $ | 3,269.00 | $ | 3,212.20 | |||||||||||||
Less allowance for depreciation | (288.4 | ) | (319.5 | ) | (963.0 | ) | (922.1 | ) | |||||||||||||
$ | 934.5 | $ | 1,038.30 | $ | 2,306.00 | $ | 2,290.10 | ||||||||||||||
Residual Value Obligation and Deferred Lease Revenue | These amounts are summarized below: | ||||||||||||||||||||
TRUCK, PARTS AND OTHER | |||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Residual value guarantees | $ | 629.1 | $ | 653.9 | |||||||||||||||||
Deferred lease revenues | 341.8 | 439.9 | |||||||||||||||||||
$ | 970.9 | $ | 1,093.80 | ||||||||||||||||||
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||
Property, Plant And Equipment | |||||||||||||||
Property, plant and equipment include the following: | |||||||||||||||
At December 31, | USEFUL LIVES | 2014 | 2013 | ||||||||||||
Land | $ | 239 | $ | 238.5 | |||||||||||
Buildings and improvements | 10-40 years | 1,082.80 | 1,024.90 | ||||||||||||
Machinery, equipment and production tooling | 3-12 years | 3,316.70 | 3,345.80 | ||||||||||||
Construction in progress | 175.8 | 321.2 | |||||||||||||
4,814.30 | 4,930.40 | ||||||||||||||
Less allowance for depreciation | (2,501.0 | ) | (2,417.1 | ) | |||||||||||
$ | 2,313.30 | $ | 2,513.30 | ||||||||||||
Accounts_Payable_Accrued_Expen1
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||
Accounts Payable, Accrued Expenses and Other | |||||||||||||||
Accounts payable, accrued expenses and other include the following: | |||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||
Truck, Parts and Other: | |||||||||||||||
Accounts payable | $ | 1,167.60 | $ | 1,005.60 | |||||||||||
Product support reserves | 355.3 | 291.7 | |||||||||||||
Accrued expenses | 213.5 | 234.3 | |||||||||||||
Accrued capital expenditures | 63.9 | 139.9 | |||||||||||||
Salaries and wages | 224.9 | 223.9 | |||||||||||||
Other | 272 | 259.6 | |||||||||||||
$ | 2,297.20 | $ | 2,155.00 | ||||||||||||
Product_Support_Liabilities_Ta
Product Support Liabilities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||
Changes in Product Support Liabilities | Changes in product support liabilities are summarized as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at January 1 | $ | 630.5 | $ | 540.7 | $ | 448.7 | |||||||||||
Cost accruals and revenue deferrals | 642.4 | 479.6 | 437.4 | ||||||||||||||
Payments and revenue recognized | (456.6 | ) | (399.8 | ) | (351.7 | ) | |||||||||||
Currency translation | (43.5 | ) | 10 | 6.3 | |||||||||||||
Balance at December 31 | $ | 772.8 | $ | 630.5 | $ | 540.7 | |||||||||||
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 H and as revised: | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
PREVIOUSLY | REVISED | PREVIOUSLY | REVISED | ||||||||||||||
REPORTED | REPORTED | ||||||||||||||||
Cost accrual and revenue deferrals | $ | 340.4 | $ | 479.6 | $ | 305.4 | $ | 437.4 | |||||||||
Payments and revenue recognized | (260.6 | ) | (399.8 | ) | (219.7 | ) | (351.7 | ) | |||||||||
Product Support Liabilities | Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: | ||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||
Truck, Parts and Other: | |||||||||||||||||
Accounts payable, accrued expenses and other | $ | 355.3 | $ | 291.7 | |||||||||||||
Other liabilities | 406.2 | 327.5 | |||||||||||||||
Financial Services: | |||||||||||||||||
Deferred taxes and other liabilities | 11.3 | 11.3 | |||||||||||||||
$ | 772.8 | $ | 630.5 | ||||||||||||||
Borrowings_And_Credit_Arrangem1
Borrowings And Credit Arrangements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Financial Services Borrowings | |||||||||||||||||
Financial Services borrowings include the following: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
At December 31, | EFFECTIVE | BORROWINGS | EFFECTIVE | BORROWINGS | |||||||||||||
RATE | RATE | ||||||||||||||||
Commercial paper | 0.8 | % | $ | 2,506.00 | 1.2 | % | $ | 2,266.80 | |||||||||
Medium-term bank loans | 5 | % | 135.9 | 5 | % | 242.1 | |||||||||||
2,641.90 | 2,508.90 | ||||||||||||||||
Term notes | 1.5 | % | 5,588.70 | 1.8 | % | 5,765.30 | |||||||||||
1.3 | % | $ | 8,230.60 | 1.7 | % | $ | 8,274.20 | ||||||||||
Annual Maturities of Financial Services Borrowings | The annual maturities of the Financial Services borrowings are as follows: | ||||||||||||||||
Beginning January 1, 2015 | COMMERCIAL | BANK | TERM | TOTAL | |||||||||||||
PAPER | LOANS | NOTES | |||||||||||||||
2015 | $ | 2,506.90 | $ | 20.4 | $ | 1,601.90 | $ | 4,129.20 | |||||||||
2016 | 34 | 1,612.90 | 1,646.90 | ||||||||||||||
2017 | 23.7 | 1,793.80 | 1,817.50 | ||||||||||||||
2018 | 37.4 | 280.2 | 317.6 | ||||||||||||||
2019 | 20.4 | 300 | 320.4 | ||||||||||||||
$ | 2,506.90 | $ | 135.9 | $ | 5,588.80 | $ | 8,231.60 | ||||||||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||
Allocation of Plan Assets by Investment | The following information details the allocation of plan assets by investment type. See Note P for definitions of fair value levels. | ||||||||||||||||||||
At December 31, 2014 | TARGET | LEVEL 1 | LEVEL 2 | TOTAL | |||||||||||||||||
Equities: | |||||||||||||||||||||
U.S. equities | $ | 666.4 | $ | 666.4 | |||||||||||||||||
Global equities | 691.3 | 691.3 | |||||||||||||||||||
Total equities | 50 - 70 | % | 1,357.70 | 1,357.70 | |||||||||||||||||
Fixed income: | |||||||||||||||||||||
U.S. fixed income | $ | 269.4 | 339.2 | 608.6 | |||||||||||||||||
Non-U.S. fixed income | 286.5 | 286.5 | |||||||||||||||||||
Total fixed income | 30 - 50 | % | 269.4 | 625.7 | 895.1 | ||||||||||||||||
Cash and other | 7.7 | 48.9 | 56.6 | ||||||||||||||||||
Total plan assets | $ | 277.1 | $ | 2,032.30 | $ | 2,309.40 | |||||||||||||||
At December 31, 2013 | TARGET | LEVEL 1 | LEVEL 2 | TOTAL | |||||||||||||||||
Equities: | |||||||||||||||||||||
U.S. equities | $ | 585.5 | $ | 585.5 | |||||||||||||||||
Global equities | 661.7 | 661.7 | |||||||||||||||||||
Total equities | 50 - 70 | % | 1,247.20 | 1,247.20 | |||||||||||||||||
Fixed income: | |||||||||||||||||||||
U.S. fixed income | $ | 252.5 | 299.6 | 552.1 | |||||||||||||||||
Non-U.S. fixed income | 260.3 | 260.3 | |||||||||||||||||||
Total fixed income | 30 - 50 | % | 252.5 | 559.9 | 812.4 | ||||||||||||||||
Cash and other | 1.2 | 47.6 | 48.8 | ||||||||||||||||||
Total plan assets | $ | 253.7 | $ | 1,854.70 | $ | 2,108.40 | |||||||||||||||
Weighted Average Assumptions of Pension Plans | The following additional data relates to all pension plans of the Company: | ||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Weighted average assumptions: | |||||||||||||||||||||
Discount rate | 3.8 | % | 4.7 | % | |||||||||||||||||
Rate of increase in future compensation levels | 3.8 | % | 3.9 | % | |||||||||||||||||
Assumed long-term rate of return on plan assets | 6.5 | % | 6.6 | % | |||||||||||||||||
Components of Change in Projected Benefit Obligation and Change in Plan Assets | The components of the change in projected benefit obligation and change in plan assets are as follows: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||
Benefit obligation at January 1 | $ | 1,961.60 | $ | 2,068.00 | |||||||||||||||||
Service cost | 67.3 | 73.5 | |||||||||||||||||||
Interest cost | 91.8 | 81 | |||||||||||||||||||
Benefits paid | (72.5 | ) | (68.4 | ) | |||||||||||||||||
Actuarial loss (gain) | 412.8 | (199.2 | ) | ||||||||||||||||||
Currency translation and other | (47.6 | ) | 3.2 | ||||||||||||||||||
Participant contributions | 4 | 3.5 | |||||||||||||||||||
Projected benefit obligation at December 31 | $ | 2,417.40 | $ | 1,961.60 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 2,108.40 | $ | 1,901.00 | |||||||||||||||||
Employer contributions | 81.1 | 26.2 | |||||||||||||||||||
Actual return on plan assets | 235.8 | 242.5 | |||||||||||||||||||
Benefits paid | (72.5 | ) | (68.4 | ) | |||||||||||||||||
Currency translation and other | (47.4 | ) | 3.6 | ||||||||||||||||||
Participant contributions | 4 | 3.5 | |||||||||||||||||||
Fair value of plan assets at December 31 | $ | 2,309.40 | $ | 2,108.40 | |||||||||||||||||
Funded status at December 31 | $ | (108.0 | ) | $ | 146.8 | ||||||||||||||||
Amounts Recorded on Balance Sheets | 2014 | 2013 | |||||||||||||||||||
Amounts recorded on balance sheet: | |||||||||||||||||||||
Other noncurrent assets | $ | 15 | $ | 217.7 | |||||||||||||||||
Other liabilities | 123 | 70.9 | |||||||||||||||||||
Accumulated other comprehensive (loss) income: | |||||||||||||||||||||
Actuarial loss | 428.9 | 257 | |||||||||||||||||||
Prior service cost | 3.9 | 4.9 | |||||||||||||||||||
Net initial transition amount | 0.3 | 0.3 | |||||||||||||||||||
Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets | Information for all plans with an accumulated benefit obligation in excess of plan assets is as follows: | ||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
Projected benefit obligation | $ | 224.2 | $ | 78.6 | |||||||||||||||||
Accumulated benefit obligation | 212.1 | 63.4 | |||||||||||||||||||
Fair value of plan assets | 139.1 | 9.2 | |||||||||||||||||||
Components of Pension Expense | The components of pension expense are as follows: | ||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||
Service cost | $ | 67.3 | $ | 73.5 | $ | 64.1 | |||||||||||||||
Interest on projected benefit obligation | 91.8 | 81 | 81.4 | ||||||||||||||||||
Expected return on assets | (128.0 | ) | (119.4 | ) | (110.8 | ) | |||||||||||||||
Amortization of prior service costs | 1.2 | 1.3 | 1.4 | ||||||||||||||||||
Recognized actuarial loss | 20.8 | 44 | 39.2 | ||||||||||||||||||
Curtailment gain | (.3 | ) | |||||||||||||||||||
Settlement loss | 4.8 | ||||||||||||||||||||
Net pension expense | $ | 53.1 | $ | 80.1 | $ | 80.1 | |||||||||||||||
Multi-employer Plans | The Company’s participation in the following multi-employer plans for the years ended December 31 are as follows: | ||||||||||||||||||||
PENSION | COMPANY CONTRIBUTIONS | ||||||||||||||||||||
PLAN | |||||||||||||||||||||
PENSION PLAN | EIN | NUMBER | 2014 | 2013 | 2012 | ||||||||||||||||
Metal and Electrical Engineering Industry Pension Fund | 135668 | $ | 27.1 | $ | 24.5 | $ | 22 | ||||||||||||||
Western Metal Industry Pension Plan | 91-6033499 | 1 | 2 | 1.5 | 1.6 | ||||||||||||||||
Other plans | 1 | 0.9 | 1 | ||||||||||||||||||
$ | 30.1 | $ | 26.9 | $ | 24.6 | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Income Before Income Taxes | The components of the Company’s income before income taxes include the following: | ||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 1,267.30 | $ | 827 | $ | 786.6 | |||||||
Foreign | 750.3 | 868 | 842.3 | ||||||||||
$ | 2,017.60 | $ | 1,695.00 | $ | 1,628.90 | ||||||||
Components of Provision for Income Taxes | The components of the Company’s provision for income taxes include the following: | ||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Current provision: | |||||||||||||
Federal | $ | 482.4 | $ | 191.4 | $ | 126.2 | |||||||
State | 59 | 20.9 | 31.5 | ||||||||||
Foreign | 215.4 | 214.1 | 207.9 | ||||||||||
756.8 | 426.4 | 365.6 | |||||||||||
Deferred (benefit) provision: | |||||||||||||
Federal | (88.3 | ) | 68.8 | 134.4 | |||||||||
State | 0.3 | 18.4 | 9.5 | ||||||||||
Foreign | (10.0 | ) | 10.1 | 7.8 | |||||||||
(98.0 | ) | 97.3 | 151.7 | ||||||||||
$ | 658.8 | $ | 523.7 | $ | 517.3 | ||||||||
Reconciliation of Statutory U.S Federal Tax Rate to Effective Income Tax Rate | A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Effect of: | |||||||||||||
State | 2 | 1.3 | 1.4 | ||||||||||
Federal domestic production deduction | (1.8 | ) | (.9 | ) | (.9 | ) | |||||||
Tax on foreign earnings | (1.6 | ) | (3.8 | ) | (3.1 | ) | |||||||
Other, net | (.9 | ) | (.7 | ) | (.6 | ) | |||||||
32.7 | % | 30.9 | % | 31.8 | % | ||||||||
Tax Effects of Temporary Differences representing Deferred Tax Assets and Liabilities | The tax effects of temporary differences representing deferred tax assets and liabilities are as follows: | ||||||||||||
At December 31, | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Accrued expenses | $ | 215.9 | $ | 188.4 | |||||||||
Net operating loss and tax credit carryforwards | 67.2 | 78.2 | |||||||||||
Postretirement benefit plans | 43.3 | ||||||||||||
Allowance for losses on receivables | 43 | 47 | |||||||||||
Other | 112.1 | 88.4 | |||||||||||
481.5 | 402 | ||||||||||||
Valuation allowance | (30.3 | ) | (43.9 | ) | |||||||||
451.2 | 358.1 | ||||||||||||
Liabilities: | |||||||||||||
Financial Services leasing depreciation | (817.2 | ) | (851.8 | ) | |||||||||
Depreciation and amortization | (289.2 | ) | (296.1 | ) | |||||||||
Postretirement benefit plans | (51.3 | ) | |||||||||||
Other | (33.5 | ) | (5.4 | ) | |||||||||
(1,139.9 | ) | (1,204.6 | ) | ||||||||||
Net deferred tax liability | $ | (688.7 | ) | $ | (846.5 | ) | |||||||
The balance sheet classification of the Company’s deferred tax assets and liabilities are as follows: | |||||||||||||
At December 31, | 2014 | 2013 | |||||||||||
Truck, Parts and Other: | |||||||||||||
Other current assets | $ | 134.8 | $ | 122.2 | |||||||||
Other noncurrent assets, net | 16 | 33.1 | |||||||||||
Accounts payable, accrued expenses and other | (.9 | ) | (.6 | ) | |||||||||
Other liabilities | (87.2 | ) | (218.7 | ) | |||||||||
Financial Services: | |||||||||||||
Other assets | 75 | 77.2 | |||||||||||
Deferred taxes and other liabilities | (826.4 | ) | (859.7 | ) | |||||||||
Net deferred tax liability | $ | (688.7 | ) | $ | (846.5 | ) | |||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 13.1 | $ | 23.4 | $ | 18.3 | |||||||
Additions for tax positions related to the current year | 0.9 | 1 | 1 | ||||||||||
Additions for tax positions related to prior years | 0.1 | 0.3 | 9.9 | ||||||||||
Reductions for tax positions related to prior years | (.9 | ) | (.7 | ) | (5.2 | ) | |||||||
Reductions related to settlements | (9.7 | ) | (.3 | ) | |||||||||
Lapse of statute of limitations | (1.2 | ) | (1.2 | ) | (.3 | ) | |||||||
Balance at December 31 | $ | 12 | $ | 13.1 | $ | 23.4 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income (loss) by Component | The components of accumulated other comprehensive (loss) income as of December 31, 2014 and 2013 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following: | ||||||||||||||||||||
DERIVATIVE | MARKETABLE | PENSION | FOREIGN | TOTAL | |||||||||||||||||
CONTRACTS | DEBT SECURITIES | PLANS | CURRENCY | ||||||||||||||||||
TRANSLATION | |||||||||||||||||||||
Balance at December 31, 2013 | $ | (15.1 | ) | $ | 1.7 | $ | (262.2 | ) | $ | 284.3 | $ | 8.7 | |||||||||
Recorded into AOCI | 20 | 4.2 | (185.8 | ) | (422.8 | ) | (584.4 | ) | |||||||||||||
Reclassified out of AOCI | (18.4 | ) | (.6 | ) | 14.9 | (4.1 | ) | ||||||||||||||
Net other comprehensive (loss) | 1.6 | 3.6 | (170.9 | ) | (422.8 | ) | (588.5 | ) | |||||||||||||
income | |||||||||||||||||||||
Balance at December 31, 2014 | $ | (13.5 | ) | $ | 5.3 | $ | (433.1 | ) | $ | (138.5 | ) | $ | (579.8 | ) | |||||||
The components of AOCI as of December 31, 2013 and 2012 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following: | |||||||||||||||||||||
DERIVATIVE | MARKETABLE | PENSION | FOREIGN | TOTAL | |||||||||||||||||
CONTRACTS | DEBT SECURITIES | PLANS | CURRENCY | ||||||||||||||||||
TRANSLATION | |||||||||||||||||||||
Balance at December 31, 2012 | $ | (27.2 | ) | $ | 6.6 | $ | (496.5 | ) | $ | 357.6 | $ | (159.5 | ) | ||||||||
Recorded into AOCI | 36.9 | (6.1 | ) | 204.8 | (71.3 | ) | 164.3 | ||||||||||||||
Reclassified out of AOCI | (24.8 | ) | 1.2 | 29.5 | (2.0 | ) | 3.9 | ||||||||||||||
Net other comprehensive (loss) | 12.1 | (4.9 | ) | 234.3 | (73.3 | ) | 168.2 | ||||||||||||||
income | |||||||||||||||||||||
Balance at December 31, 2013 | $ | (15.1 | ) | $ | 1.7 | $ | (262.2 | ) | $ | 284.3 | $ | 8.7 | |||||||||
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI during the year ended December 31, 2014 are as follows: | ||||||||||||||||||||
AOCI COMPONENTS | LINE ITEM IN THE CONSOLIDATED STATEMENTS OF 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 | $ | 0.3 | ||||||||||||||||||
Interest and other expense (income), net | (2.1 | ) | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Interest-rate contracts | Interest and other borrowing expenses | (21.7 | ) | ||||||||||||||||||
Pre-tax expense reduction | (23.5 | ) | |||||||||||||||||||
Tax expense | 5.1 | ||||||||||||||||||||
After-tax expense reduction | (18.4 | ) | |||||||||||||||||||
Unrealized (gains) and losses on marketable debt securities: | |||||||||||||||||||||
Marketable debt securities | Investment income | (.9 | ) | ||||||||||||||||||
Tax expense | 0.3 | ||||||||||||||||||||
After-tax income increase | (.6 | ) | |||||||||||||||||||
Pension plans: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Actuarial loss | Cost of sales and revenues $11.1, SG&A $9.0 | 20.1 | |||||||||||||||||||
Prior service costs | Cost of sales and revenues $1.0, SG&A $.2 | 1.2 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Actuarial loss | SG&A | 0.7 | |||||||||||||||||||
Pre-tax expense increase | 22 | ||||||||||||||||||||
Tax benefit | (7.1 | ) | |||||||||||||||||||
After-tax expense increase | 14.9 | ||||||||||||||||||||
Total reclassifications out of AOCI | $ | (4.1 | ) | ||||||||||||||||||
Reclassifications out of AOCI during the year ended December 31, 2013 are as follows: | |||||||||||||||||||||
AOCI COMPONENTS | LINE ITEM IN THE CONSOLIDATED STATEMENTS OF 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 | ||||||||||||||||||
Interest and other expense (income), net | (.6 | ) | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Interest-rate contracts | Interest and other borrowing expenses | (36.0 | ) | ||||||||||||||||||
Pre-tax expense reduction | (35.6 | ) | |||||||||||||||||||
Tax expense | 10.8 | ||||||||||||||||||||
After-tax expense reduction | (24.8 | ) | |||||||||||||||||||
Unrealized (gains) and losses on marketable debt securities: | |||||||||||||||||||||
Marketable debt securities | Investment income | 1.7 | |||||||||||||||||||
Tax benefit | (.5 | ) | |||||||||||||||||||
After-tax income decrease | 1.2 | ||||||||||||||||||||
Pension plans: | |||||||||||||||||||||
Truck, Parts and Other | |||||||||||||||||||||
Actuarial loss | Cost of sales and revenues $21.4, SG&A $20.3 | 41.7 | |||||||||||||||||||
Prior service costs | Cost of sales and revenues $.4, SG&A $.6, R&D $.3 | 1.3 | |||||||||||||||||||
Financial Services | |||||||||||||||||||||
Actuarial loss | SG&A | 2.3 | |||||||||||||||||||
Pre-tax expense increase | 45.3 | ||||||||||||||||||||
Tax benefit | (15.8 | ) | |||||||||||||||||||
After-tax expense increase | 29.5 | ||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||
Truck, Parts and Other | Interest and other expense (income), net | (1.1 | ) | ||||||||||||||||||
Financial Services | Interest and other borrowing expenses | (.9 | ) | ||||||||||||||||||
Expense reduction | (2.0 | ) | |||||||||||||||||||
Total reclassifications out of AOCI | $ | 3.9 | |||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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: | ||||||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||||||
ASSETS | LIABILITIES | ASSETS | LIABILITIES | ||||||||||||||||||||||
Derivatives designated under hedge accounting: | |||||||||||||||||||||||||
Interest-rate contracts: | |||||||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Other assets | $ | 82.7 | $ | 46.3 | |||||||||||||||||||||
Deferred taxes and other liabilities | $ | 45.7 | $ | 67.7 | |||||||||||||||||||||
Foreign-exchange contracts: | |||||||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Other current assets | 1.2 | ||||||||||||||||||||||||
Accounts payable, accrued expenses and other | 1.9 | 0.6 | |||||||||||||||||||||||
Total | $ | 83.9 | $ | 47.6 | $ | 46.3 | $ | 68.3 | |||||||||||||||||
Economic hedges: | |||||||||||||||||||||||||
Foreign-exchange contracts: | |||||||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Other current assets | $ | 1.9 | $ | 0.6 | |||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | 0.9 | $ | 0.2 | |||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Other assets | 3.4 | 1.1 | |||||||||||||||||||||||
Deferred taxes and other liabilities | 0.1 | ||||||||||||||||||||||||
Total | $ | 5.3 | $ | 0.9 | $ | 1.7 | $ | 0.3 | |||||||||||||||||
Gross amounts recognized in Balance Sheet | $ | 89.2 | $ | 48.5 | $ | 48 | $ | 68.6 | |||||||||||||||||
Less amounts not offset in financial instruments: | |||||||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Foreign-exchange contracts | (.9 | ) | (.9 | ) | (.2 | ) | (.2 | ) | |||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Interest-rate contracts | (3.9 | ) | (3.9 | ) | (16.1 | ) | (16.1 | ) | |||||||||||||||||
Pro-forma net amount | $ | 84.4 | $ | 43.7 | $ | 31.7 | $ | 52.3 | |||||||||||||||||
Economic Hedges | |||||||||||||||||||||||||
Gains/Losses of Derivative Financial Instruments | The expense (income) recognized in earnings related to economic hedges is as follows: | ||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
INTEREST- | FOREIGN- | INTEREST- | FOREIGN- | INTEREST- | FOREIGN- | ||||||||||||||||||||
RATE | EXCHANGE | RATE | EXCHANGE | RATE | EXCHANGE | ||||||||||||||||||||
CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | ||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Cost of sales and revenues | $ | (5.3 | ) | $ | (1.3 | ) | $ | (.3 | ) | ||||||||||||||||
Interest and other expense (income), net | 3.8 | 0.3 | (.5 | ) | |||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Interest and other borrowing expenses | 4.2 | $ | (1.5 | ) | (9.6 | ) | $ | 1 | 0.6 | ||||||||||||||||
Selling, general and administrative | 5.2 | ||||||||||||||||||||||||
Total | $ | 7.9 | $ | (1.5 | ) | $ | (10.6 | ) | $ | 1 | $ | (.2 | ) | ||||||||||||
Cash Flow Hedging | |||||||||||||||||||||||||
Gains/Losses of Derivative Financial Instruments | The following table presents the pre-tax effects of derivative instruments recognized in other comprehensive (loss) income (OCI): | ||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
INTEREST- | FOREIGN- | INTEREST- | FOREIGN- | INTEREST- | FOREIGN- | ||||||||||||||||||||
RATE | EXCHANGE | RATE | EXCHANGE | RATE | EXCHANGE | ||||||||||||||||||||
CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | CONTRACTS | ||||||||||||||||||||
Gain (loss) recognized in OCI: | |||||||||||||||||||||||||
Truck, Parts and Other | $ | 1.7 | $ | (1.2 | ) | $ | (1.3 | ) | |||||||||||||||||
Financial Services | $ | 24.4 | $ | 54.4 | $ | (27.9 | ) | ||||||||||||||||||
Total | $ | 24.4 | $ | 1.7 | $ | 54.4 | $ | (1.2 | ) | $ | (27.9 | ) | $ | (1.3 | ) | ||||||||||
Expense (income) reclassified out of AOCI into income: | |||||||||||||||||||||||||
Truck, Parts and Other: | |||||||||||||||||||||||||
Cost of sales and revenues | $ | 0.3 | $ | 1 | $ | 3.2 | |||||||||||||||||||
Interest and other expense (income), net | (2.1 | ) | (.6 | ) | 0.2 | ||||||||||||||||||||
Financial Services: | |||||||||||||||||||||||||
Interest and other borrowing expenses | $ | (21.7 | ) | $ | (36.0 | ) | $ | 19.3 | |||||||||||||||||
Total | $ | (21.7 | ) | $ | (1.8 | ) | $ | (36.0 | ) | $ | 0.4 | $ | 19.3 | $ | 3.4 | ||||||||||
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 Income as follows: | ||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Interest-rate swaps | $ | 0.1 | $ | 0.7 | $ | (3.8 | ) | ||||||||||||||||||
Term notes | (2.6 | ) | (5.1 | ) | 4.5 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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 December 31, 2014 | LEVEL 1 | LEVEL 2 | TOTAL | ||||||||||||||
Assets: | |||||||||||||||||
Marketable debt securities | |||||||||||||||||
U.S. tax-exempt securities | $ | 363.4 | $ | 363.4 | |||||||||||||
U.S. corporate securities | 81.5 | 81.5 | |||||||||||||||
U.S. government and agency securities | $ | 7.7 | 0.3 | 8 | |||||||||||||
Non-U.S. corporate securities | 532 | 532 | |||||||||||||||
Non-U.S. government securities | 194.1 | 194.1 | |||||||||||||||
Other debt securities | 93 | 93 | |||||||||||||||
Total marketable debt securities | $ | 7.7 | $ | 1,264.30 | $ | 1,272.00 | |||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 81.7 | $ | 81.7 | |||||||||||||
Interest-rate swaps | 1 | 1 | |||||||||||||||
Foreign-exchange contracts | 6.5 | 6.5 | |||||||||||||||
Total derivative assets | $ | 89.2 | $ | 89.2 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivatives | |||||||||||||||||
Cross currency swaps | $ | 31.1 | $ | 31.1 | |||||||||||||
Interest-rate swaps | 14.6 | 14.6 | |||||||||||||||
Foreign-exchange contracts | 2.8 | 2.8 | |||||||||||||||
Total derivative liabilities | $ | 48.5 | $ | 48.5 | |||||||||||||
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: | ||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||
CARRYING | FAIR | CARRYING | FAIR | ||||||||||||||
AMOUNT | VALUE | AMOUNT | VALUE | ||||||||||||||
Assets: | |||||||||||||||||
Financial Services fixed rate loans | $ | 3,627.50 | $ | 3,683.30 | $ | 3,592.70 | $ | 3,627.30 | |||||||||
Liabilities: | |||||||||||||||||
Truck, Parts and Other fixed rate debt | 150 | 151.1 | |||||||||||||||
Financial Services fixed rate debt | 3,713.40 | 3,737.70 | 4,039.10 | 4,087.00 |
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Values of Options Based on Stock Price at Grant Date and Assumptions | |||||||||||||||||
The expected term is based on the period of time that options granted are expected to be outstanding based on historical experience. | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 1.51 | % | 0.88 | % | 0.74 | % | |||||||||||
Expected volatility | 34 | % | 44 | % | 47 | % | |||||||||||
Expected dividend yield | 3.4 | % | 3.3 | % | 3.8 | % | |||||||||||
Expected term | 5 years | 5 years | 5 years | ||||||||||||||
Weighted average grant date fair value of options per share | $ | 13.17 | $ | 13.78 | $ | 12.67 | |||||||||||
Activity Under Company's Stock Plans | |||||||||||||||||
A summary of activity under the Company’s stock plans is presented below: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Intrinsic value of options exercised | $ | 20.9 | $ | 19.6 | $ | 15.4 | |||||||||||
Cash received from stock option exercises | 29.1 | 31 | 13.9 | ||||||||||||||
Tax benefit related to stock award exercises | 4.4 | 3.9 | 4.4 | ||||||||||||||
Stock based compensation | 16.2 | 14 | 13.9 | ||||||||||||||
Tax benefit related to stock based compensation | 5.6 | 4.9 | 4.8 | ||||||||||||||
Stock Option Activity | The summary of options as of December 31, 2014 and changes during the year then ended are presented below: | ||||||||||||||||
NUMBER | PER SHARE | REMAINING | AGGREGATE | ||||||||||||||
OF SHARES | EXERCISE | CONTRACTUAL | INTRINSIC | ||||||||||||||
PRICE* | LIFE IN YEARS* | VALUE | |||||||||||||||
Options outstanding at January 1 | 4,745,200 | $ | 41.11 | ||||||||||||||
Granted | 656,200 | 59.15 | |||||||||||||||
Exercised | (780,700 | ) | 37.21 | ||||||||||||||
Cancelled | (84,000 | ) | 48.46 | ||||||||||||||
Options outstanding at December 31 | 4,536,700 | $ | 44.25 | 5.9 | $ | 107.8 | |||||||||||
Vested and expected to vest | 4,414,300 | $ | 43.95 | 5.82 | $ | 106.2 | |||||||||||
Exercisable | 2,335,800 | $ | 39.42 | 3.9 | $ | 66.8 | |||||||||||
* Weighted Average | |||||||||||||||||
Nonvested Restricted Shares Activity | |||||||||||||||||
The summary of nonvested restricted shares as of December 31, 2014 and changes during the year then ended is presented below: | |||||||||||||||||
NONVESTED SHARES | NUMBER | GRANT DATE | |||||||||||||||
OF SHARES | FAIR VALUE* | ||||||||||||||||
Nonvested awards outstanding at January 1 | 166,700 | $ | 46.32 | ||||||||||||||
Granted | 112,500 | 59.06 | |||||||||||||||
Vested | (93,500 | ) | 51.17 | ||||||||||||||
Nonvested awards outstanding at December 31 | 185,700 | $ | 51.6 | ||||||||||||||
* Weighted Average | |||||||||||||||||
Dilutive and Antidilutive Options | The dilutive and antidilutive options are shown separately in the table below: | ||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||
Additional shares | 1,120,500 | 932,000 | 730,000 | ||||||||||||||
Antidilutive options | 673,700 | 873,800 | 2,572,000 |
Segment_and_Related_Informatio1
Segment and Related Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Geographic Area Data | |||||||||||||
Geographic Area Data | 2014 | 2013 | 2012 | ||||||||||
Revenues: | |||||||||||||
United States | $ | 10,106.30 | $ | 8,147.60 | $ | 8,234.80 | |||||||
Europe | 4,835.70 | 4,967.20 | 4,282.30 | ||||||||||
Other | 4,055.00 | 4,009.00 | 4,533.40 | ||||||||||
$ | 18,997.00 | $ | 17,123.80 | $ | 17,050.50 | ||||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 1,132.00 | $ | 1,183.10 | $ | 1,182.50 | |||||||
The Netherlands | 517.4 | 620 | 529.7 | ||||||||||
Other | 663.9 | 710.2 | 600.7 | ||||||||||
$ | 2,313.30 | $ | 2,513.30 | $ | 2,312.90 | ||||||||
Equipment on operating leases, net: | |||||||||||||
United States | $ | 1,226.60 | $ | 1,153.80 | $ | 1,019.70 | |||||||
Germany | 347 | 404.1 | 390.8 | ||||||||||
United Kingdom | 342.2 | 414.9 | 425.3 | ||||||||||
Other | 1,324.70 | 1,355.60 | 1,052.90 | ||||||||||
$ | 3,240.50 | $ | 3,328.40 | $ | 2,888.70 | ||||||||
Segment Reporting Information by Segment | |||||||||||||
Business Segment Data | 2014 | 2013 | 2012 | ||||||||||
Net sales and revenues: | |||||||||||||
Truck | $ | 15,330.40 | $ | 13,627.70 | $ | 13,797.10 | |||||||
Less intersegment | (736.4 | ) | (624.8 | ) | (665.6 | ) | |||||||
External customers | 14,594.00 | 13,002.90 | 13,131.50 | ||||||||||
Parts | 3,125.90 | 2,868.30 | 2,712.10 | ||||||||||
Less intersegment | (48.4 | ) | (46.1 | ) | (44.6 | ) | |||||||
External customers | 3,077.50 | 2,822.20 | 2,667.50 | ||||||||||
Other | 121.3 | 123.8 | 152.7 | ||||||||||
17,792.80 | 15,948.90 | 15,951.70 | |||||||||||
Financial Services | 1,204.20 | 1,174.90 | 1,098.80 | ||||||||||
$ | 18,997.00 | $ | 17,123.80 | $ | 17,050.50 | ||||||||
Income before income taxes: | |||||||||||||
Truck | $ | 1,160.10 | $ | 936.7 | $ | 920.4 | |||||||
Parts | 496.7 | 416 | 374.6 | ||||||||||
Other | (31.9 | ) | (26.5 | ) | (7.0 | ) | |||||||
1,624.90 | 1,326.20 | 1,288.00 | |||||||||||
Financial Services | 370.4 | 340.2 | 307.8 | ||||||||||
Investment income | 22.3 | 28.6 | 33.1 | ||||||||||
$ | 2,017.60 | $ | 1,695.00 | $ | 1,628.90 | ||||||||
Depreciation and amortization: | |||||||||||||
Truck | $ | 415 | $ | 352.9 | $ | 308.8 | |||||||
Parts | 5.9 | 5.3 | 5.9 | ||||||||||
Other | 11.8 | 10.2 | 10.6 | ||||||||||
432.7 | 368.4 | 325.3 | |||||||||||
Financial Services | 485 | 442.3 | 375.6 | ||||||||||
$ | 917.7 | $ | 810.7 | $ | 700.9 | ||||||||
Expenditures for long-lived assets: | |||||||||||||
Truck | $ | 504.9 | $ | 812.9 | $ | 816 | |||||||
Parts | 9.9 | 6.8 | 17.1 | ||||||||||
Other | 12.1 | 20.8 | 22.8 | ||||||||||
526.9 | 840.5 | 855.9 | |||||||||||
Financial Services | 935.3 | 931.2 | 943.1 | ||||||||||
$ | 1,462.20 | $ | 1,771.70 | $ | 1,799.00 | ||||||||
Segment assets: | |||||||||||||
Truck | $ | 4,871.10 | $ | 5,123.30 | $ | 4,530.20 | |||||||
Parts | 787.2 | 748.4 | 707.8 | ||||||||||
Other | 106.1 | 298.5 | 198.4 | ||||||||||
Cash and marketable securities | 2,937.10 | 2,925.20 | 2,395.90 | ||||||||||
8,701.50 | 9,095.40 | 7,832.30 | |||||||||||
Financial Services | 11,917.30 | 11,630.10 | 10,795.50 | ||||||||||
$ | 20,618.80 | $ | 20,725.50 | $ | 18,627.80 | ||||||||
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||
Accounting Policies [Abstract] | |||
Reportable segments | 3 | ||
Liquid investments maturity period | 90 days | ||
Goodwill | $128,600,000 | $144,600,000 | |
Impairment charges | 0 | 0 | 0 |
Trade Receivables | |||
Accounting Policies [Abstract] | |||
Trade and other receivables, net | 882,200,000 | 847,600,000 | |
Other Receivables | |||
Accounting Policies [Abstract] | |||
Trade and other receivables, net | 165,000,000 | 172,000,000 | |
Minimum | |||
Accounting Policies [Abstract] | |||
Lease and guarantee periods (in years) | 3 years | ||
Warranty period | 1 year | ||
Maximum | |||
Accounting Policies [Abstract] | |||
Lease and guarantee periods (in years) | 5 years | ||
Warranty period | 5 years | ||
Engine | |||
Accounting Policies [Abstract] | |||
Warranty period | 2 years | ||
Equipment on Operating Lease | Minimum | |||
Accounting Policies [Abstract] | |||
Estimated useful life of equipment (in years) | 4 years | ||
Equipment on Operating Lease | Maximum | |||
Accounting Policies [Abstract] | |||
Estimated useful life of equipment (in years) | 9 years | ||
Financial Services | |||
Accounting Policies [Abstract] | |||
Lease rental revenue | 741,600,000 | 712,100,000 | 645,100,000 |
Depreciation and other expense | 588,500,000 | 571,700,000 | 517,400,000 |
Modifications extended contractual terms | 5 months | 6 months | |
Financial Services | Minimum | Loans Receivable | |||
Accounting Policies [Abstract] | |||
Receivable, collection period | 36 months | ||
Financial Services | Maximum | Loans Receivable | |||
Accounting Policies [Abstract] | |||
Receivable, collection period | 60 months | ||
Financial Services | Finance Leases Financing Receivable | Minimum | |||
Accounting Policies [Abstract] | |||
Origination cost, amortization period | 36 months | ||
Financial Services | Finance Leases Financing Receivable | Maximum | |||
Accounting Policies [Abstract] | |||
Origination cost, amortization period | 60 months | ||
Financial Services | Operating Lease | |||
Accounting Policies [Abstract] | |||
Lease rental revenue | 681,500,000 | 631,700,000 | 551,500,000 |
Depreciation and other expense | 544,000,000 | 503,500,000 | 434,900,000 |
Truck, Parts and Other | |||
Accounting Policies [Abstract] | |||
Trade and other receivables, net | 1,047,100,000 | 1,019,600,000 | |
Trade receivable days outstanding considered past due | 30 days | 30 days | 30 days |
Allowance for credit losses | 1,900,000 | 2,400,000 | |
Net charge-offs | $200,000 | $200,000 | $300,000 |
Marketable_Debt_Securities_Det
Marketable Debt Securities (Detail) (Truck, Parts and Other, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $1,264.80 | $1,264.90 |
Unrealized Gains | 7.6 | 3.6 |
Unrealized Losses | 0.4 | 1 |
Fair Value | 1,272 | 1,267.50 |
U.S. tax-exempt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 362.9 | 214.9 |
Unrealized Gains | 0.8 | 1.2 |
Unrealized Losses | 0.3 | |
Fair Value | 363.4 | 216.1 |
U.S. corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 80.9 | 78.2 |
Unrealized Gains | 0.6 | 0.1 |
Unrealized Losses | 0.1 | |
Fair Value | 81.5 | 78.2 |
U.S. government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8 | 5.5 |
Fair Value | 8 | 5.5 |
Non-U.S. corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 528.1 | 608.5 |
Unrealized Gains | 3.9 | 1.2 |
Unrealized Losses | 0.4 | |
Fair Value | 532 | 609.3 |
Non-U.S. government securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 192.1 | 217.3 |
Unrealized Gains | 2 | 0.7 |
Unrealized Losses | 0.5 | |
Fair Value | 194.1 | 217.5 |
Other debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 92.8 | 140.5 |
Unrealized Gains | 0.3 | 0.4 |
Unrealized Losses | 0.1 | |
Fair Value | $93 | $140.90 |
Investments_in_Marketable_Debt
Investments in Marketable Debt Securities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized gains from sales of marketable securities | $1.20 | $2 | $3.80 |
Gross realized loss from sales of marketable securities | 0.1 | 0.7 | 0.3 |
Variable Rate Demand Obligation | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable debt securities | $0 | $0.40 |
Marketable_Debt_Securities_Con
Marketable Debt Securities Continuous Unrealized Losses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months Fair Value | $249.60 | $388.30 |
Less than 12 Months Unrealized Losses | 0.4 | 0.9 |
12 Months or Greater Fair value | 28.4 | |
12 Months or Greater Unrealized losses | $0.10 |
Contractual_Maturities_of_Mark
Contractual Maturities of Marketable Debt Securities (Detail) (Truck, Parts and Other, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Truck, Parts and Other | ||
Amortized Cost Maturities: | ||
Within one year | $423.60 | |
One to five years | 841.2 | |
Amortized Cost | 1,264.80 | 1,264.90 |
Fair Value Maturities: | ||
Within one year | 424.1 | |
One to five years | 847.9 | |
Fair Value | $1,272 | $1,267.50 |
Inventories_Table_Detail
Inventories Table (Detail) (Truck, Parts and Other, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Truck, Parts and Other | ||
Inventory [Line Items] | ||
Finished products | $512.30 | $440.60 |
Work in process and raw materials | 587.7 | 545.2 |
Inventory, Gross, Total | 1,100 | 985.8 |
Less LIFO reserve | -174.3 | -172.2 |
Inventories, net | $925.70 | $813.60 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||
Percentage of inventories valued using LIFO method of accounting | 47.00% | 47.00% |
Finance_and_Other_Receivables_1
Finance and Other Receivables (Detail) (Financial Services, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $3,968.50 | $3,977.40 | ||
Direct financing leases | 2,752.80 | 2,680.80 | ||
Sales-type finance leases | 972.8 | 921.1 | ||
Dealer wholesale financing | 1,755.80 | 1,616.50 | ||
Operating lease and other trade receivables | 99.5 | 121.3 | ||
Unearned interest: Finance leases | -384.8 | -375.7 | ||
Loans and Leases Receivable, Net of Deferred Income, Total | 9,164.60 | 8,941.40 | ||
Less allowance for losses | -122 | -129.3 | -130 | -139 |
Finance and other receivables, net | 9,042.60 | 8,812.10 | ||
Loans and leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less allowance for losses | -105.5 | -110.9 | ||
Dealer | Wholesale | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less allowance for losses | -9 | -10.4 | -11.8 | -11.7 |
Operating lease and other trade receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less allowance for losses | ($7.50) | ($8) |
Annual_Minimum_Payments_Due_on
Annual Minimum Payments Due on Finance Receivables (Detail) (Financial Services, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $9,065.10 | $8,820.10 |
Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2015 | 1,251.20 | |
2016 | 1,032.10 | |
2017 | 815.3 | |
2018 | 523.8 | |
2019 | 296.2 | |
Thereafter | 49.9 | |
Financing Receivables | 3,968.50 | |
Finance Leases Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2015 | 1,066.90 | |
2016 | 905.7 | |
2017 | 691.6 | |
2018 | 448 | |
2019 | 265.7 | |
Thereafter | 143.7 | |
Financing Receivables | $3,521.60 |
Finance_and_Other_Receivables_2
Finance and Other Receivables - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Loans | $16.70 | $10.70 | |
Repossessed inventory | 19 | 13.7 | |
Proceeds from the sales of repossessed assets | 58.5 | 63.2 | 62.2 |
Financial Services | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans accounted for as troubled debt restructurings | 36 | 27.6 | |
Financial Services | Finance Leases Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Estimated residual values included with finance leases | $204 | $229.60 | |
Financing Receivable | Credit Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of portfolio | 5.00% |
Allowance_for_Credit_Losses_De
Allowance for Credit Losses (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Provision for losses | $15.40 | $12.90 | $20 | |||
Financial Services | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning Balance | 129.3 | 130 | 139 | |||
Provision for losses | 15.4 | 12.9 | 20 | |||
Charge-offs | -21.3 | -24.5 | -38.7 | |||
Recoveries | 5.3 | 10.9 | 7.4 | |||
Currency translation and other | -6.7 | 2.3 | ||||
Ending Balance | 122 | 129.3 | 130 | |||
Financial Services | Dealer | Wholesale | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning Balance | 10.4 | 11.8 | 11.7 | |||
Provision for losses | 0.3 | -0.9 | 1.8 | |||
Charge-offs | -0.9 | -0.5 | ||||
Currency translation and other | -0.8 | -1.7 | ||||
Ending Balance | 9 | 10.4 | 11.8 | |||
Financial Services | Dealer | Retail | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning Balance | 13.4 | 13.4 | 12 | |||
Provision for losses | -1.4 | 0.2 | 1.4 | |||
Currency translation and other | -0.1 | -0.2 | ||||
Ending Balance | 11.9 | 13.4 | 13.4 | |||
Financial Services | Customer Retail | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning Balance | 97.5 | 99.2 | 106.5 | |||
Provision for losses | 14.8 | 9.8 | 13.1 | |||
Charge-offs | -18.2 | -21.2 | -32.1 | |||
Recoveries | 4.6 | 9.9 | 7 | |||
Currency translation and other | -5.1 | -0.2 | 4.7 | |||
Ending Balance | 93.6 | 97.5 | 99.2 | |||
Financial Services | Other | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Beginning Balance | 8 | [1] | 5.6 | [1] | 8.8 | [1] |
Provision for losses | 1.7 | [1] | 3.8 | [1] | 3.7 | [1] |
Charge-offs | -2.2 | [1] | -2.8 | [1] | -6.6 | [1] |
Recoveries | 0.7 | [1] | 1 | [1] | 0.4 | [1] |
Currency translation and other | -0.7 | [1] | 0.4 | [1] | -0.7 | [1] |
Ending Balance | $7.50 | [1] | $8 | [1] | $5.60 | [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 $) | Dec. 31, 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 | $48.60 | $50.60 |
Allowance for impaired finance receivables determined individually | 5.1 | 7.3 |
Recorded investment for finance receivables evaluated collectively | 9,016.50 | 8,769.50 |
Allowance for finance receivables determined collectively | 109.4 | 114 |
Dealer | Wholesale | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | 4.9 | 8.5 |
Allowance for impaired finance receivables determined individually | 0.5 | 1.4 |
Recorded investment for finance receivables evaluated collectively | 1,750.90 | 1,608 |
Allowance for finance receivables determined collectively | 8.5 | 9 |
Dealer | Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for finance receivables evaluated collectively | 1,606.50 | 1,525.60 |
Allowance for finance receivables determined collectively | 11.9 | 13.4 |
Customer Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | 43.7 | 42.1 |
Allowance for impaired finance receivables determined individually | 4.6 | 5.9 |
Recorded investment for finance receivables evaluated collectively | 5,659.10 | 5,635.90 |
Allowance for finance receivables determined collectively | $89 | $91.60 |
Recorded_Investment_for_Financ
Recorded Investment for Finance Receivables that are on Non-accrual Status (Detail) (Financial Services, USD $) | Dec. 31, 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 | $48.20 | $47.10 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | 4.9 | 8 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | 34.4 | 30.5 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | $8.90 | $8.60 |
Summary_of_Impaired_Loans_and_
Summary of Impaired Loans and Specific Reserve (Detail) (Financial Services, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | $15.80 | $22.40 |
Associated allowance | -2.5 | -4.1 |
Net carrying amount of impaired loans | 13.3 | 18.3 |
Average recorded investment | 34.1 | 39.7 |
Dealer | Wholesale | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 0.5 | 8.5 |
Associated allowance | -0.5 | -1.4 |
Net carrying amount of impaired loans | 7.1 | |
Average recorded investment | 8.8 | 5.8 |
Customer Retail | Fleet | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 12.7 | 10.8 |
Associated allowance | -1.5 | -2.1 |
Net carrying amount of impaired loans | 11.2 | 8.7 |
Average recorded investment | 22.5 | 28.9 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 2.6 | 3.1 |
Associated allowance | -0.5 | -0.6 |
Net carrying amount of impaired loans | 2.1 | 2.5 |
Average recorded investment | $2.80 | $5 |
Summary_of_Impaired_Loans_and_1
Summary of Impaired Loans and Specific Reserve (Cash Basis Method) (Detail) (Financial Services, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income recognized: | |||
Interest income recognized on a cash basis | $1.70 | $3.90 | $2.10 |
Dealer | Wholesale | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | 0.1 | 0.1 | 0.1 |
Customer Retail | Fleet | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | 1.2 | 2.9 | 1.2 |
Customer Retail | Owner/Operator | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | $0.40 | $0.90 | $0.80 |
Finance_Receivables_by_Credit_
Finance Receivables by Credit Quality Indicator and Portfolio Class (Detail) (Financial Services, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | $9,065.10 | $8,820.10 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 8,970.70 | 8,713 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 45.8 | 56.5 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 48.6 | 50.6 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,755.80 | 1,616.50 |
Dealer | Wholesale | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,739.50 | 1,576.90 |
Dealer | Wholesale | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 11.4 | 31.1 |
Dealer | Wholesale | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 4.9 | 8.5 |
Dealer | Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,606.50 | 1,525.60 |
Dealer | Retail | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,606.40 | 1,520.10 |
Dealer | Retail | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 0.1 | 5.5 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 4,487.50 | 4,442.50 |
Customer Retail | Fleet | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 4,430.90 | 4,396.50 |
Customer Retail | Fleet | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 21.8 | 12.7 |
Customer Retail | Fleet | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 34.8 | 33.3 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,215.30 | 1,235.50 |
Customer Retail | Owner/Operator | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,193.90 | 1,219.50 |
Customer Retail | Owner/Operator | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 12.5 | 7.2 |
Customer Retail | Owner/Operator | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | $8.90 | $8.80 |
Financing_Receivables_by_Aging
Financing Receivables by Aging Category (Detail) (Financial Services, USD $) | Dec. 31, 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 | $9,023.80 | $8,776.20 |
31 - 60 days past due | 18.1 | 17.2 |
Greater than 60 days past due | 23.2 | 26.7 |
Financing Receivables | 9,065.10 | 8,820.10 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current and up to 30 days past due | 1,752.90 | 1,611.70 |
31 - 60 days past due | 0.6 | 1.7 |
Greater than 60 days past due | 2.3 | 3.1 |
Financing Receivables | 1,755.80 | 1,616.50 |
Dealer | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current and up to 30 days past due | 1,606.50 | 1,525.60 |
Financing Receivables | 1,606.50 | 1,525.60 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current and up to 30 days past due | 4,464.40 | 4,417.50 |
31 - 60 days past due | 10.6 | 9.2 |
Greater than 60 days past due | 12.5 | 15.8 |
Financing Receivables | 4,487.50 | 4,442.50 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current and up to 30 days past due | 1,200 | 1,221.40 |
31 - 60 days past due | 6.9 | 6.3 |
Greater than 60 days past due | 8.4 | 7.8 |
Financing Receivables | $1,215.30 | $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 $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | $26.70 | $13.80 |
Post-Modification Recorded Investment | 26.4 | 13.6 |
Customer Retail | Fleet | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 24.4 | 11.4 |
Post-Modification Recorded Investment | 24.1 | 11.2 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 2.3 | 2.4 |
Post-Modification Recorded Investment | $2.30 | $2.40 |
TDRs_Modified_During_Previous_
TDRs Modified During Previous Twelve Months that Subsequently Defaulted (Detail) (Financial Services, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||
Recorded Investment, subsequently defaulted | $0.90 | $5.30 |
Customer Retail | Fleet | ||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||
Recorded Investment, subsequently defaulted | 0.7 | 4.6 |
Customer Retail | Owner/Operator | ||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||
Recorded Investment, subsequently defaulted | $0.20 | $0.70 |
Recovered_Sheet1
Equipment on Operating Leases for Truck and Other Segment and for Financial Services Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Total | $3,240.50 | $3,328.40 | $2,888.70 |
Truck, Parts and Other | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Equipment on operating leases | 1,222.90 | 1,357.80 | |
Less allowance for depreciation | -288.4 | -319.5 | |
Total | 934.5 | 1,038.30 | |
Financial Services | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Equipment on operating leases | 3,269 | 3,212.20 | |
Less allowance for depreciation | -963 | -922.1 | |
Total | $2,306 | $2,290.10 |
Equipment_on_Operating_Leases_1
Equipment on Operating Leases - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Financial Services | |
Property Subject to or Available for Operating Lease [Line Items] | |
Minimum lease payments receivable for operating leases, in 2015 | $527.70 |
Minimum lease payments receivable for operating leases, in 2016 | 377.2 |
Minimum lease payments receivable for operating leases, in 2017 | 243.4 |
Minimum lease payments receivable for operating leases, in 2018 | 118.1 |
Minimum lease payments receivable for operating leases, in 2019 | 37 |
Minimum lease payments receivable for operating leases, thereafter | 6.8 |
Truck, Parts and Other | |
Property Subject to or Available for Operating Lease [Line Items] | |
Annual amortization of deferred lease revenues, in 2015 | 139.5 |
Annual amortization of deferred lease revenues, in 2016 | 100.5 |
Annual amortization of deferred lease revenues, in 2017 | 58.2 |
Annual amortization of deferred lease revenues, in 2018 | 33.3 |
Annual amortization of deferred lease revenues, in 2019 | 10.2 |
Annual amortization of deferred lease revenues, thereafter | 0.1 |
Annual maturities of the residual value guarantees, in 2015 | 228.9 |
Annual maturities of the residual value guarantees, in 2016 | 169.1 |
Annual maturities of the residual value guarantees, in 2017 | 110.8 |
Annual maturities of the residual value guarantees, in 2018 | 64.4 |
Annual maturities of the residual value guarantees, in 2019 | 40.5 |
Annual maturities of the residual value guarantees, thereafter | $15.40 |
Residual_Value_Obligation_and_
Residual Value Obligation and Deferred Lease Revenue (Detail) (Truck, Parts and Other, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Truck, Parts and Other | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Residual value guarantees | $629.10 | $653.90 |
Deferred lease revenues | 341.8 | 439.9 |
Residual value guarantees and deferred revenues, Total | $970.90 | $1,093.80 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net | 2,313.30 | $2,513.30 | $2,312.90 |
Truck, Parts and Other | |||
Property, Plant and Equipment [Line Items] | |||
Land | 239 | 238.5 | |
Buildings and improvements | 1,082.80 | 1,024.90 | |
Machinery, equipment and production tooling | 3,316.70 | 3,345.80 | |
Construction in progress | 175.8 | 321.2 | |
Property, Plant and Equipment, Gross, Total | 4,814.30 | 4,930.40 | |
Less allowance for depreciation | -2,501 | -2,417.10 | |
Property, plant and equipment, net | 2,313.30 | $2,513.30 | |
Truck, Parts and Other | Building and Building Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Truck, Parts and Other | Building and Building Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Truck, Parts and Other | Machinery Equipment And Production Tooling | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Truck, Parts and Other | Machinery Equipment And Production Tooling | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 12 years |
Accounts_Payable_Accrued_Expen2
Accounts Payable, Accrued Expenses and Other (Detail) (Truck, Parts and Other, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Truck, Parts and Other | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accounts payable | $1,167.60 | $1,005.60 |
Product support reserves | 355.3 | 291.7 |
Accrued expenses | 213.5 | 234.3 |
Accrued capital expenditures | 63.9 | 139.9 |
Salaries and wages | 224.9 | 223.9 |
Other | 272 | 259.6 |
Accounts payable, accrued expenses and other | $2,297.20 | $2,155 |
Changes_in_Product_Support_Lia
Changes in Product Support Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranties Disclosures [Abstract] | |||
Beginning balance | $630.50 | $540.70 | $448.70 |
Cost accruals and revenue deferrals | 642.4 | 479.6 | 437.4 |
Payments and revenue recognized | -456.6 | -399.8 | -351.7 |
Currency translation | -43.5 | 10 | 6.3 |
Ending balance | $772.80 | $630.50 | $540.70 |
Revised_Changes_in_Product_Sup
Revised Changes in Product Support Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Product Warranty Liability [Line Items] | |||
Cost accrual and revenue deferrals | $642.40 | $479.60 | $437.40 |
Payments and revenue recognized | -456.6 | -399.8 | -351.7 |
Previously Reported | |||
Schedule Of Product Warranty Liability [Line Items] | |||
Cost accrual and revenue deferrals | 340.4 | 305.4 | |
Payments and revenue recognized | -260.6 | -219.7 | |
Revised | |||
Schedule Of Product Warranty Liability [Line Items] | |||
Cost accrual and revenue deferrals | 479.6 | 437.4 | |
Payments and revenue recognized | ($399.80) | ($351.70) |
Product_Support_Liabilities_De
Product Support Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Product Liability Contingency [Line Items] | ||||
Product Warranty Accrual | $772.80 | $630.50 | $540.70 | $448.70 |
Truck, Parts and Other | Accounts Payable Accrued Expenses and Other | ||||
Product Liability Contingency [Line Items] | ||||
Product Warranty Accrual | 355.3 | 291.7 | ||
Truck, Parts and Other | Other liabilities | ||||
Product Liability Contingency [Line Items] | ||||
Product Warranty Accrual | 406.2 | 327.5 | ||
Financial Services | Deferred Taxes And Other Liabilities | ||||
Product Liability Contingency [Line Items] | ||||
Product Warranty Accrual | $11.30 | $11.30 |
Recovered_Sheet2
Borrowings and Credit Arrangements - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 30, 2011 | Apr. 30, 2011 | Dec. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Syndicated revolving loan facility | PACCAR Mexico | PACCAR Mexico | PACCAR Mexico | Parent Company | Parent Company | Parent Company | PACCAR Financial Corp. (PFC) | PACCAR's European finance subsidiary | Truck, Parts and Other | Truck, Parts and Other | Truck, Parts and Other | Truck, Parts and Other | Financial Services | Financial Services | Financial Services | Financial Services | Financial Services | Financial Services | Maximum | Matures in June 2015 | Matures in June 2018 | Matures in June 2019 | |
USD ($) | Medium-term Notes | Medium-term Notes | Commercial Papers | Medium-term Notes | Medium-term Notes | Medium-term Notes | Medium-term Notes | Medium-term Notes | USD ($) | USD ($) | USD ($) | Notes 6.90 Percent Due 2014 | USD ($) | USD ($) | Medium-term Notes | Medium-term Notes | Commercial Papers | Commercial Papers | PACCAR Mexico | Syndicated revolving loan facility | Syndicated revolving loan facility | Syndicated revolving loan facility | ||||
MXN | MXN | MXN | USD ($) | Manufacturing Debt | USD ($) | EUR (€) | USD ($) | Commercial Papers | USD ($) | USD ($) | USD ($) | |||||||||||||||
USD ($) | ||||||||||||||||||||||||||
Debt Disclosure [Line Items] | ||||||||||||||||||||||||||
Notes payable, Non-current | $150 | |||||||||||||||||||||||||
Interest rate | 6.90% | 1.30% | 1.70% | 5.00% | 5.00% | 0.80% | 1.20% | |||||||||||||||||||
Maturity month and year | 2014-02 | |||||||||||||||||||||||||
Commercial paper and term notes | 8,094.70 | 8,032.10 | ||||||||||||||||||||||||
Fair value hedges and unamortized discounts, net | -1 | 1.5 | ||||||||||||||||||||||||
Interest paid on borrowings | 136.3 | 149.3 | 149.9 | |||||||||||||||||||||||
Capitalized interest | 1.3 | 10.3 | 10.3 | |||||||||||||||||||||||
Debt outstanding | 500 | 4,150 | ||||||||||||||||||||||||
Repayment of debt | 150 | |||||||||||||||||||||||||
Registration expiration | Expires in 2016 | Fourth quarter of 2014 | Nov-15 | |||||||||||||||||||||||
Debt, unused borrowing capacity | 8,000 | 366.9 | ||||||||||||||||||||||||
Debt, borrowing capacity | 10,000 | 1,500 | ||||||||||||||||||||||||
Debt, renewal period | Second quarter of 2014 | |||||||||||||||||||||||||
Commercial paper expiration period | 1 year | |||||||||||||||||||||||||
Maximum limit of borrowing capacity | 5,000 | |||||||||||||||||||||||||
Line of credit, maximum capacity | 3,503.90 | 3,000 | 1,000 | 1,000 | 1,000 | |||||||||||||||||||||
Line of credit, unused borrowing capacity | $3,368 | |||||||||||||||||||||||||
Line of credit, maturity date | 2015-06 | 2018-06 | 2019-06 |
Financial_Services_Borrowings_
Financial Services Borrowings (Detail) (Financial Services, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.30% | 1.70% |
Commercial paper | $2,506 | $2,266.80 |
Medium-term bank loans | 135.9 | 242.1 |
Commercial paper and bank loans | 2,641.90 | 2,508.90 |
Term notes | 5,588.70 | 5,765.30 |
Commercial Paper, Bank Loans, and Term Debt at Carrying Value, Total | $8,230.60 | $8,274.20 |
Commercial Papers | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.80% | 1.20% |
Medium-term Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | 5.00% |
Term Loan | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.50% | 1.80% |
Annual_Maturities_of_Financial
Annual Maturities of Financial Services Borrowings (Detail) (Financial Services, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | |
2015 | $4,129.20 |
2016 | 1,646.90 |
2017 | 1,817.50 |
2018 | 317.6 |
2019 | 320.4 |
Debt, Long-term and Short-term, Combined Amount, Total | 8,231.60 |
Commercial Papers | |
Debt Instrument [Line Items] | |
2015 | 2,506.90 |
Debt, Long-term and Short-term, Combined Amount, Total | 2,506.90 |
Notes Payable to Banks | |
Debt Instrument [Line Items] | |
2015 | 20.4 |
2016 | 34 |
2017 | 23.7 |
2018 | 37.4 |
2019 | 20.4 |
Debt, Long-term and Short-term, Combined Amount, Total | 135.9 |
Medium-term Notes | |
Debt Instrument [Line Items] | |
2015 | 1,601.90 |
2016 | 1,612.90 |
2017 | 1,793.80 |
2018 | 280.2 |
2019 | 300 |
Debt, Long-term and Short-term, Combined Amount, Total | $5,588.80 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Minimum lease payments for operating leases, in 2015 | $19.50 | ||
Minimum lease payments for operating leases, in 2016 | 14.2 | ||
Minimum lease payments for operating leases, in 2017 | 9.7 | ||
Minimum lease payments for operating leases, in 2018 | 6.6 | ||
Minimum lease payments for operating leases, in 2019 | 2.9 | ||
Minimum lease payments for operating leases, thereafter | 2.2 | ||
Rental expenses | $34.50 | $34.10 | $29.10 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Environmental activities expenditures | $1.20 | $2.30 | $1.70 |
Standby letters of credit | 19 | ||
Outstanding commitments to fund new loan and lease transactions | 769.6 | ||
Commitments expiration term | 90 days | ||
Commitments due in 2015 | 262.8 | ||
Commitments due in 2016 | 76.1 | ||
Commitments due in 2017 | 70.6 | ||
Commitments due in 2018 | 5.2 | ||
Commitments due in 2019 |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefits Disclosure [Line Items] | |||
Severance Costs | $1.80 | $3.50 | $4.80 |
Projected benefit obligation, period increase | 96.4 | ||
Actuarial gains losses amortization percentage | 10.00% | ||
Contribution to pension plans | 81.1 | 26.2 | |
Expected pension contributions minimum funding requirements | 7.7 | ||
Annual benefits expected to be paid year one | 72.7 | ||
Annual benefits expected to be paid year two | 76.6 | ||
Annual benefits expected to be paid year three | 84 | ||
Annual benefits expected to be paid year four | 88.6 | ||
Annual benefits expected to be paid year five | 94.3 | ||
Annual benefits expected to be paid for the five years thereafter | 555.8 | ||
Unrecognized actuarial loss amount in accumulated other comprehensive loss expected to be amortized next year | 40.8 | ||
Unrecognized prior service cost amount in accumulated other comprehensive loss expected to be amortized next year | 1.3 | ||
Accumulated benefit obligation for all pension plans of the Company | 2,113.70 | 1,742.20 | |
Metal and Electrical Engineering Industry Pension Fund | |||
Employee Benefits Disclosure [Line Items] | |||
Actual coverage ratio percentage | 104.10% | ||
Defined Contribution Pension | |||
Employee Benefits Disclosure [Line Items] | |||
Percentage match for base wages | 5.00% | 5.00% | 5.00% |
Defined contribution benefit plans expense | 36.3 | 34 | 33.6 |
Minimum | |||
Employee Benefits Disclosure [Line Items] | |||
Expected pension contributions by the company to the pension plans in the next year | 50 | ||
Minimum | Metal and Electrical Engineering Industry Pension Fund | |||
Employee Benefits Disclosure [Line Items] | |||
Required coverage ratio percentage | 104.30% | ||
Minimum | Western Metal Industry Pension Plan | |||
Employee Benefits Disclosure [Line Items] | |||
Contributions by the Company | 5.00% | ||
Maximum | |||
Employee Benefits Disclosure [Line Items] | |||
Expected pension contributions by the company to the pension plans in the next year | $100 | ||
Maximum | Metal and Electrical Engineering Industry Pension Fund | |||
Employee Benefits Disclosure [Line Items] | |||
Contributions by the Company | 5.00% | 5.00% | |
Maximum | Western Metal Industry Pension Plan | |||
Employee Benefits Disclosure [Line Items] | |||
Contributions by the Company | 12.00% |
Allocation_of_Plan_Assets_by_I
Allocation of Plan Assets by Investments (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $2,309.40 | $2,108.40 | $1,901 |
Equity Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target minimum | 50.00% | 50.00% | |
Equity funds, target maximum | 70.00% | 70.00% | |
Plan assets | 1,357.70 | 1,247.20 | |
Equity Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 666.4 | 585.5 | |
Equity Funds | Global | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 691.3 | 661.7 | |
Fixed Income Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target minimum | 30.00% | 30.00% | |
Equity funds, target maximum | 50.00% | 50.00% | |
Plan assets | 895.1 | 812.4 | |
Fixed Income Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 608.6 | 552.1 | |
Fixed Income Funds | Non U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 286.5 | 260.3 | |
Cash and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 56.6 | 48.8 | |
Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 277.1 | 253.7 | |
Level 1 | Fixed Income Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 269.4 | 252.5 | |
Level 1 | Fixed Income Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 269.4 | 252.5 | |
Level 1 | Cash and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 7.7 | 1.2 | |
Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 2,032.30 | 1,854.70 | |
Level 2 | Equity Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,357.70 | 1,247.20 | |
Level 2 | Equity Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 666.4 | 585.5 | |
Level 2 | Equity Funds | Global | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 691.3 | 661.7 | |
Level 2 | Fixed Income Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 625.7 | 559.9 | |
Level 2 | Fixed Income Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 339.2 | 299.6 | |
Level 2 | Fixed Income Funds | Non U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 286.5 | 260.3 | |
Level 2 | Cash and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $48.90 | $47.60 |
Additional_Data_Relates_to_All
Additional Data Relates to All Pension Plans of Company, Except for Certain Multi-Employer and Defined Contribution Plans (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted average assumptions: | ||
Discount rate | 3.80% | 4.70% |
Rate of increase in future compensation levels | 3.80% | 3.90% |
Assumed long-term rate of return on plan assets | 6.50% | 6.60% |
Components_of_Change_in_Projec
Components of Change in Projected Benefit Obligation and Change in Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in projected benefit obligation: | |||
Benefit obligation, beginning balance | $1,961.60 | $2,068 | |
Service cost | 67.3 | 73.5 | 64.1 |
Interest cost | 91.8 | 81 | 81.4 |
Benefits paid | -72.5 | -68.4 | |
Actuarial loss (gain) | 412.8 | -199.2 | |
Currency translation and other | -47.6 | 3.2 | |
Participant contributions | 4 | 3.5 | |
Projected benefit obligation, ending balance | 2,417.40 | 1,961.60 | 2,068 |
Change in plan assets: | |||
Fair value of plan assets, beginning balance | 2,108.40 | 1,901 | |
Employer contributions | 81.1 | 26.2 | |
Actual return on plan assets | 235.8 | 242.5 | |
Benefits paid | -72.5 | -68.4 | |
Currency translation and other | -47.4 | 3.6 | |
Participant contributions | 4 | 3.5 | |
Fair value of plan assets, ending balance | 2,309.40 | 2,108.40 | 1,901 |
Funded status, ending balance | -108 | 146.8 | |
Amounts recorded on balance sheet | |||
Other noncurrent assets | 15 | 217.7 | |
Other liabilities | 123 | 70.9 | |
Accumulated other comprehensive (loss) income: | |||
Actuarial loss | 428.9 | 257 | |
Prior service cost | 3.9 | 4.9 | |
Net initial transition amount | $0.30 | $0.30 |
Information_for_All_Plans_with
Information for All Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $224.20 | $78.60 |
Accumulated benefit obligation | 212.1 | 63.4 |
Fair value of plan assets | $139.10 | $9.20 |
Components_of_Pension_Expense_
Components of Pension Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $67.30 | $73.50 | $64.10 |
Interest on projected benefit obligation | 91.8 | 81 | 81.4 |
Expected return on assets | -128 | -119.4 | -110.8 |
Amortization of prior service costs | 1.2 | 1.3 | 1.4 |
Recognized actuarial loss | 20.8 | 44 | 39.2 |
Curtailment gain | -0.3 | ||
Settlement loss | 4.8 | ||
Net pension expense | $53.10 | $80.10 | $80.10 |
Multiemployer_Plans_Detail
Multi-employer Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Multiemployer Plans [Line Items] | |||
COMPANY CONTRIBUTIONS | $30.10 | $26.90 | $24.60 |
Metal and Electrical Engineering Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
PENSION PLAN NUMBER | 135668 | ||
COMPANY CONTRIBUTIONS | 27.1 | 24.5 | 22 |
Western Metal Industry Pension Plan | |||
Multiemployer Plans [Line Items] | |||
EIN | 916033499 | ||
PENSION PLAN NUMBER | 1 | ||
COMPANY CONTRIBUTIONS | 2 | 1.5 | 1.6 |
Other Pension Plans, Defined Benefit | |||
Multiemployer Plans [Line Items] | |||
COMPANY CONTRIBUTIONS | $1 | $0.90 | $1 |
Components_of_Income_Before_In
Components of Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $1,267.30 | $827 | $786.60 |
Foreign | 750.3 | 868 | 842.3 |
Income Before Income Taxes | $2,017.60 | $1,695 | $1,628.90 |
Components_of_Provision_for_In
Components of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current provision: | |||
Federal | $482.40 | $191.40 | $126.20 |
State | 59 | 20.9 | 31.5 |
Foreign | 215.4 | 214.1 | 207.9 |
Current Income Tax Expense (Benefit), Total | 756.8 | 426.4 | 365.6 |
Deferred (benefit) provision: | |||
Federal | -88.3 | 68.8 | 134.4 |
State | 0.3 | 18.4 | 9.5 |
Foreign | -10 | 10.1 | 7.8 |
Deferred taxes | -98 | 97.3 | 151.7 |
Income taxes | $658.80 | $523.70 | $517.30 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ||||
Tax benefits recognized for net operating loss carryforwards | $16 | $4.50 | $3.20 | |
Investments reinvested outside the country of domicile | 4,100 | |||
Estimated deferred tax liability | 400 | |||
Foreign earnings included in domestic taxable income | 249 | 241.7 | 256 | |
Foreign earnings included in domestic taxable income, domestic taxes | 18.6 | 19.5 | 22.1 | |
Operating loss carryforwards | 460.4 | |||
Net operating loss carryforwards | 67.2 | 78.2 | ||
Carryforward description | The carryforward periods range from five years to indefinite, subject to certain limitations under applicable laws. | |||
Cash paid for income taxes | 689.9 | 434 | 448.2 | |
Unrecognized tax benefits | 12 | 13.1 | 23.4 | 18.3 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 1.1 | 1.5 | 1.9 | |
Expense(Income) related to interest and penalties | -0.8 | -1.1 | 1 | |
Accrued interest expense and penalties | 4.7 | 5.5 | 6.7 | |
Other Major Jurisdictions | ||||
Income Taxes [Line Items] | ||||
Tax examinations | The Company's tax returns for other major jurisdictions remain subject to examination for the years ranging from 2004 through 2014. | |||
Net Operating Loss Carryforwards | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 65.8 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards periods | 5 years | |||
Minimum | Intercompany | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits, resulting from intercompany transactions | 7 | |||
Maximum | Intercompany | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits, resulting from intercompany transactions | 8 | |||
Internal Revenue Service (IRS) | ||||
Income Taxes [Line Items] | ||||
Tax examinations | The United States Internal Revenue Service has completed examinations of the Company's tax returns for all years through 2010. | |||
Foreign | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 206.2 | |||
United States | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $254.20 |
Reconciliation_of_Statutory_US
Reconciliation of Statutory U.S. Federal Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State | 2.00% | 1.30% | 1.40% |
Federal domestic production deduction | -1.80% | -0.90% | -0.90% |
Tax on foreign earnings | -1.60% | -3.80% | -3.10% |
Other, net | -0.90% | -0.70% | -0.60% |
Effective Income Tax Rate Reconciliation, Percent, Total | 32.70% | 30.90% | 31.80% |
Tax_Effects_of_Temporary_Diffe
Tax Effects of Temporary Differences Representing Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ||
Accrued expenses | $215.90 | $188.40 |
Net operating loss and tax credit carryforwards | 67.2 | 78.2 |
Postretirement benefit plans | 43.3 | |
Allowance for losses on receivables | 43 | 47 |
Other | 112.1 | 88.4 |
Deferred Tax Assets, Gross, Total | 481.5 | 402 |
Valuation allowance | -30.3 | -43.9 |
Deferred Tax Assets Net | 451.2 | 358.1 |
Liabilities: | ||
Financial Services leasing depreciation | -817.2 | -851.8 |
Depreciation and amortization | -289.2 | -296.1 |
Postretirement benefit plans | -51.3 | |
Other | -33.5 | -5.4 |
Deferred Tax Liability, Total | -1,139.90 | -1,204.60 |
Net deferred tax liability | ($688.70) | ($846.50) |
Balance_Sheet_Classification_o
Balance Sheet Classification of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets Net | $451.20 | $358.10 |
Net deferred tax liability | -688.7 | -846.5 |
Truck, Parts and Other | Other current assets | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets Net | 134.8 | 122.2 |
Truck, Parts and Other | Other Noncurrent Assets | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets Net | 16 | 33.1 |
Truck, Parts and Other | Accounts Payable, Accrued Expenses and Other | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Liabilities | -0.9 | -0.6 |
Truck, Parts and Other | Other liabilities | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Liabilities | -87.2 | -218.7 |
Financial Services | Other Assets | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets Net | 75 | 77.2 |
Financial Services | Deferred Taxes And Other Liabilities | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Liabilities | ($826.40) | ($859.70) |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | $13.10 | $23.40 | $18.30 |
Additions for tax positions related to the current year | 0.9 | 1 | 1 |
Additions for tax positions related to prior years | 0.1 | 0.3 | 9.9 |
Reductions for tax positions related to prior years | -0.9 | -0.7 | -5.2 |
Reductions related to settlements | -9.7 | -0.3 | |
Lapse of statute of limitations | -1.2 | -1.2 | -0.3 |
Balance at the end of the year | $12 | $13.10 | $23.40 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (loss) by Component (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $8.70 | ($159.50) | |
Recorded into AOCI | -584.4 | 164.3 | |
Reclassified out of AOCI | -4.1 | 3.9 | |
Net other comprehensive (loss) income | -588.5 | 168.2 | 59.5 |
Ending balance | -579.8 | 8.7 | -159.5 |
Derivative Contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -15.1 | -27.2 | |
Recorded into AOCI | 20 | 36.9 | |
Reclassified out of AOCI | -18.4 | -24.8 | |
Net other comprehensive (loss) income | 1.6 | 12.1 | |
Ending balance | -13.5 | -15.1 | |
Marketable Debt Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1.7 | 6.6 | |
Recorded into AOCI | 4.2 | -6.1 | |
Reclassified out of AOCI | -0.6 | 1.2 | |
Net other comprehensive (loss) income | 3.6 | -4.9 | |
Ending balance | 5.3 | 1.7 | |
Pension Plan | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -262.2 | -496.5 | |
Recorded into AOCI | -185.8 | 204.8 | |
Reclassified out of AOCI | 14.9 | 29.5 | |
Net other comprehensive (loss) income | -170.9 | 234.3 | |
Ending balance | -433.1 | -262.2 | |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 284.3 | 357.6 | |
Recorded into AOCI | -422.8 | -71.3 | |
Reclassified out of AOCI | -2 | ||
Net other comprehensive (loss) income | -422.8 | -73.3 | |
Ending balance | ($138.50) | $284.30 |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized (gains) and losses on derivative contracts, pre-tax | ($23.50) | ($35.60) | $22.70 |
Unrealized (gains) and losses on derivative contracts, tax | 5.1 | 10.8 | -7.8 |
Unrealized (gains) and losses on derivative contracts, after-tax | -18.4 | -24.8 | |
Unrealized (gains) and losses on marketable debt securities, pre-tax | -0.9 | 1.7 | -2.9 |
Unrealized (gains) and losses on marketable debt securities, tax | 0.3 | -0.5 | 0.8 |
Unrealized (gains) and losses on marketable debt securities, after tax | -0.6 | 1.2 | |
Pension plans, pre- tax | 22 | 45.3 | 45.4 |
Pension plans, tax | -7.1 | -15.8 | -15.2 |
Pension plans, after tax | 14.9 | 29.5 | |
Foreign currency translation, after tax | -2 | ||
Total reclassifications out of AOCI | -4.1 | 3.9 | |
Truck, Parts and Other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension plans, Actuarial loss, pre- tax | 20.1 | 41.7 | |
Pension plans, Prior service costs, pre-tax | 1.2 | 1.3 | |
Truck, Parts and Other | Cost of sales and revenues | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension plans, Actuarial loss, pre- tax | 11.1 | 21.4 | |
Pension plans, Prior service costs, pre-tax | 1 | 0.4 | |
Truck, Parts and Other | Interest and other expense (income), net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation, after tax | -1.1 | ||
Truck, Parts and Other | SG&A | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension plans, Actuarial loss, pre- tax | 9 | 20.3 | |
Pension plans, Prior service costs, pre-tax | 0.2 | 0.6 | |
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 | 0.3 | 1 | |
Truck, Parts and Other | Foreign-exchange contracts | Interest and other expense (income), net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized (gains) and losses on derivative contracts, pre-tax | -2.1 | -0.6 | |
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 | 0.7 | 2.3 | |
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 | ($21.70) | ($36) |
Reclassifications_Out_of_Accum1
Reclassifications Out of Accumulated Other Comprehensive Income (Parenthetical) (Detail) (Truck, Parts and Other, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension plans, Actuarial loss, pre- tax | $20.10 | $41.70 |
Pension plans, Prior service costs, pre-tax | 1.2 | 1.3 |
Cost of sales and revenues | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension plans, Actuarial loss, pre- tax | 11.1 | 21.4 |
Pension plans, Prior service costs, pre-tax | 1 | 0.4 |
SG&A | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension plans, Actuarial loss, pre- tax | 9 | 20.3 |
Pension plans, Prior service costs, pre-tax | 0.2 | 0.6 |
R&D | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pension plans, Prior service costs, pre-tax | $0.30 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (TREASURY STOCK, AT COST:) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TREASURY STOCK, AT COST: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Treasury stock, shares retired | 4.2 | ||
Purchases, shares | 0.7 | 4.2 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Maximum length of future cash flow hedges | 6 years 2 months 12 days | ||
Recognized gain (loss) on the ineffective portion | $0 | $100,000 | $500,000 |
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 | 19,400,000 | ||
Foreign-exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount of outstanding contracts | 199,500,000 | ||
Foreign-exchange contracts maturity period | Within one year | ||
Interest Rate Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount of outstanding contracts | 3,733,900,000 | ||
Notional maturities for interest-rate contracts 2015 | 1,226,800,000 | ||
Notional maturities for interest-rate contracts 2016 | 1,341,400,000 | ||
Notional maturities for interest-rate contracts 2017 | 633,000,000 | ||
Notional maturities for interest-rate contracts 2018 | 379,900,000 | ||
Notional maturities for interest-rate contracts 2019 | 81,800,000 | ||
Notional maturities for interest-rate contracts thereafter | $71,000,000 |
Balance_Sheet_Classifications_
Balance Sheet Classifications, Fair Value, Gross and Pro-Forma Net Amounts of Derivative Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Derivative assets | $89.20 | $48 |
Pro-forma net amount | 84.4 | 31.7 |
LIABILITIES | ||
Derivative liabilities | 48.5 | 68.6 |
Pro-forma net amount | 43.7 | 52.3 |
Interest Rate Contract | Financial Services | ||
ASSETS | ||
Less amounts not offset in financial instruments | -3.9 | -16.1 |
LIABILITIES | ||
Less amounts not offset in financial instruments | -3.9 | -16.1 |
Foreign-exchange contracts | Truck, Parts and Other | ||
ASSETS | ||
Less amounts not offset in financial instruments | -0.9 | -0.2 |
LIABILITIES | ||
Less amounts not offset in financial instruments | -0.9 | -0.2 |
Designated as Hedging Instrument | ||
ASSETS | ||
Derivative assets | 83.9 | 46.3 |
LIABILITIES | ||
Derivative liabilities | 47.6 | 68.3 |
Designated as Hedging Instrument | Interest Rate Contract | Financial Services | Deferred Taxes And Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 45.7 | 67.7 |
Designated as Hedging Instrument | Interest Rate Contract | Financial Services | Other Assets | ||
ASSETS | ||
Derivative assets | 82.7 | 46.3 |
Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Accounts Payable Accrued Expenses And Other | ||
LIABILITIES | ||
Derivative liabilities | 1.9 | 0.6 |
Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ||
ASSETS | ||
Derivative assets | 1.2 | |
Not Designated as Hedging Instrument | ||
ASSETS | ||
Derivative assets | 5.3 | 1.7 |
LIABILITIES | ||
Derivative liabilities | 0.9 | 0.3 |
Not Designated as Hedging Instrument | Foreign-exchange contracts | Financial Services | Deferred Taxes And Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 0.1 | |
Not Designated as Hedging Instrument | Foreign-exchange contracts | Financial Services | Other Assets | ||
ASSETS | ||
Derivative assets | 3.4 | 1.1 |
Not Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Accounts Payable Accrued Expenses And Other | ||
LIABILITIES | ||
Derivative liabilities | 0.9 | 0.2 |
Not Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ||
ASSETS | ||
Derivative assets | $1.90 | $0.60 |
Income_or_Expense_Recognized_i
(Income) or Expense Recognized in Earnings Related to Fair Value Hedges (Detail) (Financial Services, Interest and other borrowing expenses, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
Interest-rate swaps | $0.10 | $0.70 | ($3.80) |
Term notes | ($2.60) | ($5.10) | $4.50 |
PreTax_Effects_of_Derivative_I
Pre-Tax Effects of Derivative Instruments Recognized in OCI (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Rate Contract | |||
Derivative [Line Items] | |||
Gain (loss) recognized in OCI | $24.40 | $54.40 | ($27.90) |
Expense (income) reclassified out of AOCI into income | -21.7 | -36 | 19.3 |
Interest Rate Contract | Financial Services | |||
Derivative [Line Items] | |||
Gain (loss) recognized in OCI | 24.4 | 54.4 | -27.9 |
Interest Rate Contract | Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
Expense (income) reclassified out of AOCI into income | -21.7 | -36 | 19.3 |
Foreign-exchange contracts | |||
Derivative [Line Items] | |||
Gain (loss) recognized in OCI | 1.7 | -1.2 | -1.3 |
Expense (income) reclassified out of AOCI into income | -1.8 | 0.4 | 3.4 |
Foreign-exchange contracts | Truck, Parts and Other | |||
Derivative [Line Items] | |||
Gain (loss) recognized in OCI | 1.7 | -1.2 | -1.3 |
Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues | |||
Derivative [Line Items] | |||
Expense (income) reclassified out of AOCI into income | 0.3 | 1 | 3.2 |
Foreign-exchange contracts | Truck, Parts and Other | Interest and other expense, net | |||
Derivative [Line Items] | |||
Expense (income) reclassified out of AOCI into income | ($2.10) | ($0.60) | $0.20 |
Expense_or_Income_Recognized_i
Expense or (Income) Recognized in Earnings Related to Economic Hedges (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Rate Contract | |||
Derivative [Line Items] | |||
(Income) or expense recognized in earnings related to economic hedges | ($1.50) | $1 | |
Interest Rate Contract | Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
(Income) or expense recognized in earnings related to economic hedges | -1.5 | 1 | |
Foreign-exchange contracts | |||
Derivative [Line Items] | |||
(Income) or expense recognized in earnings related to economic hedges | 7.9 | -10.6 | -0.2 |
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 | -5.3 | -1.3 | -0.3 |
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 | 3.8 | 0.3 | -0.5 |
Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
(Income) or expense recognized in earnings related to economic hedges | 4.2 | -9.6 | 0.6 |
Foreign-exchange contracts | Financial Services | SG&A | |||
Derivative [Line Items] | |||
(Income) or expense recognized in earnings related to economic hedges | $5.20 |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Subject to Recurring Fair Value Measurements (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $89.20 | $48 |
Derivative liabilities | 48.5 | 68.6 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 1,272 | 1,267.50 |
Derivative assets | 89.2 | 48 |
Derivative liabilities | 48.5 | 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 | 363.4 | 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 | 81.5 | 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 | 8 | 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 | 532 | 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 | 194.1 | 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 | 93 | 140.9 |
Fair Value, Measurements, Recurring | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 81.7 | 40.9 |
Derivative liabilities | 31.1 | 42.1 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 5.4 |
Derivative liabilities | 14.6 | 25.6 |
Fair Value, Measurements, Recurring | Foreign-exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6.5 | 1.7 |
Derivative liabilities | 2.8 | 0.9 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 7.7 | 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 | 7.7 | 5.2 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 1,264.30 | 1,262.30 |
Derivative assets | 89.2 | 48 |
Derivative liabilities | 48.5 | 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 | 363.4 | 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 | 81.5 | 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 | 0.3 | 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 | 532 | 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 | 194.1 | 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 | 93 | 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 | 81.7 | 40.9 |
Derivative liabilities | 31.1 | 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 | 1 | 5.4 |
Derivative liabilities | 14.6 | 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 | 6.5 | 1.7 |
Derivative liabilities | $2.80 | $0.90 |
Carrying_Amount_and_Fair_Value
Carrying Amount and Fair Value of Financial Services Fixed-Rate Loans and Fixed-Rate Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Services | ||
Assets, carrying amount | ||
Fixed-rate loans, carrying amount | $3,627.50 | $3,592.70 |
Liabilities, carrying amount | ||
Fixed-rate debt, carrying amount | 3,713.40 | 4,039.10 |
Assets, Fair Value | ||
Fixed-rate loans, Fair Value | 3,683.30 | 3,627.30 |
Liabilities, Fair Value | ||
Fixed-rate debt, Fair Value | 3,737.70 | 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 |
Stock_Compensation_Plans_Addit
Stock Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | |
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of option granted | $8.60 | $11.20 | $12 | ||
Fair value of option vested | 10.5 | 8.8 | 8.9 | ||
Unrecognized compensation cost related to unvested stock | 8.4 | ||||
Recognized over a remaining weighted-average vesting period (year) | 1 year 5 months 19 days | ||||
Stock options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options expiration term from the grant date (in years) | 10 years | ||||
Stock options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested stock | $1.10 | ||||
Recognized over a remaining weighted-average vesting period (year) | 1 year 3 months 18 days | ||||
Stock granted | 112,500 | ||||
Stock granted, weighted-average fair value | $59.06 | [1] | |||
Restricted Stock Units (RSUs) | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Stock Options and Restricted Stock Units (RSUs) | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock authorized for issuance | 46,700,000 | ||||
Shares available for future grants | 16,100,000 | ||||
Performance Based Restricted Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 5 years | ||||
Stock granted | 187,500 | ||||
Stock granted, weighted-average fair value | $43.61 | ||||
[1] | Weighted Average |
Values_of_Option_on_Stock_Pric
Values of Option on Stock Price at Grant Date and Assumption (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.51% | 0.88% | 0.74% |
Expected volatility | 34.00% | 44.00% | 47.00% |
Expected dividend yield | 3.40% | 3.30% | 3.80% |
Expected term | 5 years | 5 years | 5 years |
Weighted average grant date fair value of options per share | $13.17 | $13.78 | $12.67 |
Summary_of_Activity_Under_Stoc
Summary of Activity Under Stock Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of options exercised | $20.90 | $19.60 | $15.40 |
Cash received from stock option exercises | 29.1 | 31 | 13.9 |
Tax benefit related to stock award exercises | 4.4 | 3.9 | 4.4 |
Stock based compensation | 16.2 | 14 | 13.9 |
Tax benefit related to stock based compensation | $5.60 | $4.90 | $4.80 |
Summary_of_Options_Detail
Summary of Options (Detail) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | |
NUMBER OF SHARES | ||
Options outstanding, beginning balance | 4,745,200 | |
Granted | 656,200 | |
Exercised | -780,700 | |
Cancelled | -84,000 | |
Options outstanding, ending balance | 4,536,700 | |
Vested and expected to vest, end of period | 4,414,300 | |
Exercisable, end of period | 2,335,800 | |
PER SHARE EXERCISE PRICE | ||
Options outstanding, beginning balance | $41.11 | [1] |
Granted | $59.15 | [1] |
Exercised | $37.21 | [1] |
Cancelled | $48.46 | [1] |
Options outstanding, ending balance | $44.25 | [1] |
Vested and expected to vest, end of period | $43.95 | [1] |
Exercisable, end of period | $39.42 | [1] |
REMAINING CONTRACTUAL LIFE IN YEARS | ||
Options outstanding, ending balance | 5 years 10 months 24 days | [1] |
Vested and expected to vest, end of period | 5 years 9 months 26 days | [1] |
Exercisable, end of period | 3 years 10 months 24 days | [1] |
AGGREGATE INTRINSIC VALUE | ||
Options outstanding, ending balance | $107.80 | |
Vested and expected to vest, end of period | 106.2 | |
Exercisable, end of period | $66.80 | |
[1] | Weighted Average |
Summary_of_Nonvested_Restricte
Summary of Nonvested Restricted Shares Activity (Detail) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Restricted Stock Units (RSUs) | ||
NONVESTED NUMBER OF SHARES | ||
Nonvested awards outstanding, beginning balance | 166,700 | |
Granted | 112,500 | |
Vested | -93,500 | |
Nonvested awards outstanding, ending balance | 185,700 | |
GRANT DATE FAIR VALUE | ||
Nonvested awards outstanding, beginning balance | $46.32 | [1] |
Granted | $59.06 | [1] |
Vested | $51.17 | [1] |
Nonvested awards outstanding, ending balance | $51.60 | [1] |
[1] | Weighted Average |
Dilutive_and_Antidilutive_Opti
Dilutive and Antidilutive Options (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Additional shares | 1,120,500 | 932,000 | 730,000 |
Antidilutive options | 673,700 | 873,800 | 2,572,000 |
Segment_and_Related_Informatio2
Segment and Related Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Reportable segments | 3 | ||
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Intercompany interest income | $0.90 | $0.70 | $0.90 |
Geographical_Area_Date_Recorde
Geographical Area Date Recorded to Consolidated (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Revenues | $18,997 | $17,123.80 | $17,050.50 |
Property, plant and equipment, net | 2,313.30 | 2,513.30 | 2,312.90 |
Equipment on operating leases, net | 3,240.50 | 3,328.40 | 2,888.70 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10,106.30 | 8,147.60 | 8,234.80 |
Property, plant and equipment, net | 1,132 | 1,183.10 | 1,182.50 |
Equipment on operating leases, net | 1,226.60 | 1,153.80 | 1,019.70 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,835.70 | 4,967.20 | 4,282.30 |
Other Countries | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,055 | 4,009 | 4,533.40 |
Property, plant and equipment, net | 663.9 | 710.2 | 600.7 |
Equipment on operating leases, net | 1,324.70 | 1,355.60 | 1,052.90 |
Netherlands | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 517.4 | 620 | 529.7 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 342.2 | 414.9 | 425.3 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | $347 | $404.10 | $390.80 |
Segment_Reporting_Information_
Segment Reporting Information by Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Revenues | $18,997 | $17,123.80 | $17,050.50 |
Investment income | 22.3 | 28.6 | 33.1 |
Income before income taxes | 2,017.60 | 1,695 | 1,628.90 |
Depreciation and amortization | 917.7 | 810.7 | 700.9 |
Expenditures for long-lived assets | 1,462.20 | 1,771.70 | 1,799 |
Assets | 20,618.80 | 20,725.50 | 18,627.80 |
Cash and marketable securities | 2,937.10 | 2,925.20 | 2,395.90 |
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 121.3 | 123.8 | 152.7 |
Income before income taxes | -31.9 | -26.5 | -7 |
Depreciation and amortization | 11.8 | 10.2 | 10.6 |
Expenditures for long-lived assets | 12.1 | 20.8 | 22.8 |
Assets | 106.1 | 298.5 | 198.4 |
Truck, Parts and Other | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 17,792.80 | 15,948.90 | 15,951.70 |
Income before income taxes | 1,624.90 | 1,326.20 | 1,288 |
Depreciation and amortization | 432.7 | 368.4 | 325.3 |
Expenditures for long-lived assets | 526.9 | 840.5 | 855.9 |
Assets | 8,701.50 | 9,095.40 | 7,832.30 |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 1,204.20 | 1,174.90 | 1,098.80 |
Income before income taxes | 370.4 | 340.2 | 307.8 |
Depreciation and amortization | 485 | 442.3 | 375.6 |
Expenditures for long-lived assets | 935.3 | 931.2 | 943.1 |
Assets | 11,917.30 | 11,630.10 | 10,795.50 |
Trucks | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 15,330.40 | 13,627.70 | 13,797.10 |
Income before income taxes | 1,160.10 | 936.7 | 920.4 |
Depreciation and amortization | 415 | 352.9 | 308.8 |
Expenditures for long-lived assets | 504.9 | 812.9 | 816 |
Assets | 4,871.10 | 5,123.30 | 4,530.20 |
Trucks | Revenues From External Customers | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 14,594 | 13,002.90 | 13,131.50 |
Trucks | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | -736.4 | -624.8 | -665.6 |
Parts | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,125.90 | 2,868.30 | 2,712.10 |
Income before income taxes | 496.7 | 416 | 374.6 |
Depreciation and amortization | 5.9 | 5.3 | 5.9 |
Expenditures for long-lived assets | 9.9 | 6.8 | 17.1 |
Assets | 787.2 | 748.4 | 707.8 |
Parts | Revenues From External Customers | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,077.50 | 2,822.20 | 2,667.50 |
Parts | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | ($48.40) | ($46.10) | ($44.60) |