Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PCAR | ||
Entity Registrant Name | PACCAR INC | ||
Entity Central Index Key | 75,362 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 351,358,497 | ||
Entity Public Float | $ 22,180 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment income | $ 21.8 | $ 22.3 | $ 28.6 |
Provision for losses on receivables | 12.4 | 15.4 | 12.9 |
Income before income taxes | 2,337.1 | 2,017.6 | 1,695 |
Income taxes | 733.1 | 658.8 | 523.7 |
Net Income | $ 1,604 | $ 1,358.8 | $ 1,171.3 |
Net Income Per Share | |||
Basic | $ 4.52 | $ 3.83 | $ 3.31 |
Diluted | $ 4.51 | $ 3.82 | $ 3.30 |
Weighted Average Number of Common Shares Outstanding | |||
Basic | 354.6 | 355 | 354.2 |
Diluted | 355.6 | 356.1 | 355.2 |
Truck, Parts and Other | |||
Net sales and revenues | $ 17,942.8 | $ 17,792.8 | $ 15,948.9 |
Cost of sales and revenues | 15,292.1 | 15,481.6 | 13,900.7 |
Research and development | 239.8 | 215.6 | 251.4 |
Selling, general and administrative | 445.9 | 465.2 | 465.3 |
Interest and other expense, net | 12.3 | 5.5 | 5.3 |
Costs and Expenses, Total | 15,990.1 | 16,167.9 | 14,622.7 |
Income before income taxes | 1,952.7 | 1,624.9 | 1,326.2 |
Financial Services | |||
Interest and fees | 443.8 | 462.6 | 462.8 |
Operating lease, rental and other revenues | 728.5 | 741.6 | 712.1 |
Revenues | 1,172.3 | 1,204.2 | 1,174.9 |
Interest and other borrowing expenses | 118 | 133.7 | 155.9 |
Depreciation and other expenses | 583.7 | 588.5 | 571.7 |
Selling, general and administrative | 95.6 | 96.2 | 94.2 |
Provision for losses on receivables | 12.4 | 15.4 | 12.9 |
Costs and Expenses, Total | 809.7 | 833.8 | 834.7 |
Income before income taxes | $ 362.6 | $ 370.4 | $ 340.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,604 | $ 1,358.8 | $ 1,171.3 |
Unrealized gains (losses) on derivative contracts | |||
Gains arising during the period | 38.7 | 26.1 | 53.2 |
Tax effect | (10.8) | (6.1) | (16.3) |
Reclassification adjustment | (29.3) | (23.5) | (35.6) |
Tax effect | 8.5 | 5.1 | 10.8 |
Net current period OCI, unrealized gains and (losses) on derivative contracts | 7.1 | 1.6 | 12.1 |
Unrealized (losses) gains on marketable debt securities | |||
Net holding (loss) gain | (2.3) | 5.5 | (8.3) |
Tax effect | 0.6 | (1.3) | 2.2 |
Reclassification adjustment | (2.1) | (0.9) | 1.7 |
Tax effect | 0.6 | 0.3 | (0.5) |
Net current period OCI, unrealized gains and (losses) on marketable debt securities | (3.2) | 3.6 | (4.9) |
Pension plans | |||
Gains (losses) arising during the period | 17.7 | (291.1) | 324.9 |
Tax effect | (2.6) | 105.3 | (120.1) |
Reclassification adjustment | 42.4 | 22 | 45.3 |
Tax effect | (14.8) | (7.1) | (15.8) |
Net current period OCI, pension plans | 42.7 | (170.9) | 234.3 |
Foreign currency translation losses | (483.8) | (422.8) | (73.3) |
Net other comprehensive (loss) income | (437.2) | (588.5) | 168.2 |
Comprehensive Income | $ 1,166.8 | $ 770.3 | $ 1,339.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 2,016.4 | $ 1,737.6 |
Equipment on operating leases, net | 3,373 | 3,240.5 |
Property, plant and equipment, net | 2,176.4 | 2,313.3 |
Total Assets | $ 21,109.8 | $ 20,618.8 |
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 351.3 million and 355.2 million shares | $ 351.3 | $ 355.2 |
Additional paid-in capital | 69.3 | 156.7 |
Treasury stock, at cost - nil and .7 million shares | (42.7) | |
Retained earnings | 7,536.8 | 6,863.8 |
Accumulated other comprehensive loss | (1,017) | (579.8) |
Total Stockholders' Equity | 6,940.4 | 6,753.2 |
Liabilities and Equity, Total | 21,109.8 | 20,618.8 |
Truck, Parts and Other | ||
ASSETS | ||
Cash and cash equivalents | 1,929.9 | 1,665.1 |
Trade and other receivables, net | 879 | 1,047.1 |
Marketable debt securities | 1,448.1 | 1,272 |
Inventories, net | 796.5 | 925.7 |
Other current assets | 245.7 | 290.5 |
Total Truck, Parts and Other Current Assets | 5,299.2 | 5,200.4 |
Equipment on operating leases, net | 992.2 | 934.5 |
Property, plant and equipment, net | 2,176.4 | 2,313.3 |
Other noncurrent assets, net | 387.4 | 253.3 |
Total Assets | 8,855.2 | 8,701.5 |
Liabilities | ||
Accounts payable, accrued expenses and other | 2,071.7 | 2,297.2 |
Dividend payable | 492.6 | 354.4 |
Total Truck, Parts and Other Current Liabilities | 2,564.3 | 2,651.6 |
Residual value guarantees and deferred revenues | 1,047.4 | 970.9 |
Other liabilities | 720.2 | 718.8 |
Total Liabilities | 4,331.9 | 4,341.3 |
Financial Services | ||
ASSETS | ||
Cash and cash equivalents | 86.5 | 72.5 |
Finance and other receivables, net | 9,303.6 | 9,042.6 |
Equipment on operating leases, net | 2,380.8 | 2,306 |
Other assets | 483.7 | 496.2 |
Total Assets | 12,254.6 | 11,917.3 |
Liabilities | ||
Accounts payable, accrued expenses and other | 356.9 | 384.5 |
Commercial paper and bank loans | 2,796.5 | 2,641.9 |
Term notes | 5,795 | 5,588.7 |
Deferred taxes and other liabilities | 889.1 | 909.2 |
Total Liabilities | $ 9,837.5 | $ 9,524.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 351,300,000 | 355,200,000 |
Treasury stock, shares | 700,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES: | |||
Net income | $ 1,604 | $ 1,358.8 | $ 1,171.3 |
Adjustments to reconcile net income to cash provided by operations: | |||
Depreciation and amortization, Property, plant and equipment | 292.2 | 285.2 | 210.7 |
Depreciation and amortization, Equipment on operating leases and other | 614.9 | 632.5 | 600 |
Provision for losses on financial services receivables | 12.4 | 15.4 | 12.9 |
Deferred taxes | (55.2) | (98) | 97.3 |
Other, net | 46.6 | 40.4 | 36.6 |
Pension contributions | (62.9) | (81.1) | (26.2) |
Decrease (increase) in assets other than cash and cash equivalents: | |||
Trade and other receivables | 105.3 | (71.3) | (115) |
Wholesale receivables on new trucks | (273.4) | (232.8) | (82.5) |
Sales-type finance leases and dealer direct loans on new trucks | (6.6) | (133.1) | (101.9) |
Inventories | 64.3 | (189.5) | (39.6) |
Other assets, net | (125.1) | (72) | (86.9) |
(Decrease) increase in liabilities: | |||
Accounts payable and accrued expenses | (162.6) | 252.3 | 240.8 |
Residual value guarantees and deferred revenues | 242 | 123.1 | 261.8 |
Other liabilities, net | 260.1 | 293.7 | 196.4 |
Net Cash Provided by Operating Activities | 2,556 | 2,123.6 | 2,375.7 |
INVESTING ACTIVITIES: | |||
Originations of retail loans and direct financing leases | (3,064.5) | (3,114.2) | (2,992.8) |
Collections on retail loans and direct financing leases | 2,681.9 | 2,847.6 | 2,469.2 |
Net (increase) decrease in wholesale receivables on used equipment | (24.7) | 1.1 | 6.5 |
Purchases of marketable debt securities | (1,329.8) | (1,122.5) | (990.1) |
Proceeds from sales and maturities of marketable debt securities | 1,035.5 | 997.9 | 888.9 |
Payments for property, plant and equipment | (286.7) | (298.2) | (510.6) |
Acquisitions of equipment for operating leases | (1,438.5) | (1,239.1) | (1,362.2) |
Proceeds from asset disposals | 448.8 | 395.5 | 340.1 |
Other, net | 3.1 | ||
Net Cash Used in Investing Activities | (1,974.9) | (1,531.9) | (2,151) |
FINANCING ACTIVITIES: | |||
Payments of cash dividends | (680.5) | (623.8) | (283.1) |
Purchases of treasury stock | (201.6) | (42.7) | |
Proceeds from stock compensation transactions | 21.8 | 29.1 | 31 |
Net increase (decrease) in commercial paper and short-term bank loans | 250.7 | 349.1 | (1,039.3) |
Proceeds from term debt | 1,993.2 | 1,650.8 | 2,134.1 |
Payments on term debt | (1,580.1) | (1,883) | (568.9) |
Net Cash (Used in) Provided by Financing Activities | (196.5) | (520.5) | 273.8 |
Effect of exchange rate changes on cash | (105.8) | (83.7) | (20.8) |
Net Increase (Decrease) in Cash and Cash Equivalents | 278.8 | (12.5) | 477.7 |
Cash and cash equivalents at beginning of year | 1,737.6 | 1,750.1 | 1,272.4 |
Cash and cash equivalents at end of year | $ 2,016.4 | $ 1,737.6 | $ 1,750.1 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Millions | Total | COMMON STOCK, $1 PAR VALUE: | ADDITIONAL PAID-IN CAPITAL: | TREASURY STOCK, AT COST: | RETAINED EARNINGS: | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME: |
Balance at Dec. 31, 2012 | $ 353.4 | $ 56.6 | $ 5,596.4 | $ (159.5) | ||
Net income | $ 1,171.3 | 1,171.3 | ||||
Other comprehensive (loss) income | 168.2 | 168.2 | ||||
Cash dividends declared on common stock, per share: 2015 - $2.32; 2014 - $1.86; 2013 - $1.70 | (602.6) | |||||
Stock compensation | 0.9 | |||||
Stock compensation and tax benefit | 49.6 | |||||
Balance at Dec. 31, 2013 | 6,634.3 | 354.3 | 106.2 | 6,165.1 | 8.7 | |
Net income | 1,358.8 | 1,358.8 | ||||
Purchases, shares: 2015 - 3.85; 2014 - .73; 2013 - nil | $ (42.7) | |||||
Other comprehensive (loss) income | (588.5) | (588.5) | ||||
Cash dividends declared on common stock, per share: 2015 - $2.32; 2014 - $1.86; 2013 - $1.70 | (660.1) | |||||
Stock compensation | 0.9 | |||||
Stock compensation and tax benefit | 50.5 | |||||
Balance at Dec. 31, 2014 | 6,753.2 | 355.2 | 156.7 | (42.7) | 6,863.8 | (579.8) |
Net income | 1,604 | 1,604 | ||||
Purchases, shares: 2015 - 3.85; 2014 - .73; 2013 - nil | (201.6) | |||||
Other comprehensive (loss) income | (437.2) | (437.2) | ||||
Cash dividends declared on common stock, per share: 2015 - $2.32; 2014 - $1.86; 2013 - $1.70 | (819.8) | |||||
Treasury stock retirement | (4.6) | (128.5) | $ 244.3 | (111.2) | ||
Stock compensation | 0.7 | |||||
Stock compensation and tax benefit | 41.1 | |||||
Balance at Dec. 31, 2015 | $ 6,940.4 | $ 351.3 | $ 69.3 | $ 7,536.8 | $ (1,017) |
Consolidated Statements Of Sto8
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
TREASURY STOCK, AT COST: | |||
Purchases, shares | 3,850 | 730 | |
RETAINED EARNINGS: | |||
Cash dividends declared on common stock, per share | $ 2.32 | $ 1.86 | $ 1.70 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | A. SIGNIFICANT ACCOUNTING POLICIES Description of Operations: Principles of Consolidation: Use of Estimates: Revenue Recognition: Truck, Parts and Other: Financial Services: Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at December 31, 2015 or December 31, 2014. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Cash and Cash Equivalents: Marketable Debt Securities : 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 third-party 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 : Finance and Other Receivables : Loans Finance leases Dealer wholesale financing Operating lease receivables and other Allowance for Credit Losses: Truck, Parts and Other: Financial Services: The Company modifies loans and finance leases in the normal course 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. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies loans and finance leases for credit reasons and grants a concession, the modifications are classified as troubled debt restructurings (TDR). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs. On average, modifications extended contractual terms by approximately seven months in 2015 and five months in 2014 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at December 31, 2015 and 2014. The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and direct 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 periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over 36 to 60 months, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves. The Company individually evaluates certain finance receivables for impairment. Finance receivables that are evaluated individually for impairment consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. A finance receivable is impaired if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. In addition, all retail loans and leases which have been classified as TDRs and all customer accounts over 90 days past due are considered impaired. Generally, impaired accounts are on non-accrual status. Impaired accounts classified as TDRs which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments. Impaired receivables are generally considered collateral dependent. Large balance retail and all wholesale impaired receivables are individually evaluated to determine the appropriate reserve for losses. The determination of reserves for large balance impaired receivables considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s recorded investment, no reserve is recorded. Small balance impaired receivables with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below. The Company evaluates finance receivables that are not individually impaired on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data and current market conditions. Information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse. The Company has developed a range of loss estimates for 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, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. Inventories: last-in, Equipment on Operating Leases: Property, Plant and Equipment: Long-lived Assets and Goodwill: Product Support Liabilities: Derivative Financial Instruments: 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: Earnings per Share: New Accounting Pronouncements: Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In November 2015, FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The FASB also issued the following standards, none of which are expected to have a material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION EFFECTIVE DATE* 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. January 1, 2017 2015-07 Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). January 1, 2016 2015-05 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. January 1, 2016 2015-03 Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. January 1, 2016 2015-15 Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measure of Debt Issuance Costs Associated with Line-of-Credit Arrangements. January 1, 2016 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. January 1, 2016 * The Company expects to adopt on the effective date. |
Investments in Marketable Debt
Investments in Marketable Debt Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Marketable Debt Securities | B. INVESTMENTS IN MARKETABLE DEBT SECURITIES Marketable debt securities consisted of the following at December 31: 2015 AMORTIZED COST UNREALIZED GAINS UNREALIZED LOSSES FAIR VALUE U.S. tax-exempt securities $ 505.0 $ .7 $ .3 $ 505.4 U.S. corporate securities 76.7 .1 .1 76.7 U.S. government and agency securities 15.7 .1 .1 15.7 Non-U.S. corporate securities 585.6 1.8 .4 587.0 Non-U.S. government securities 192.7 1.1 .1 193.7 Other debt securities 69.6 .1 .1 69.6 $ 1,445.3 $ 3.9 $ 1.1 $ 1,448.1 2014 AMORTIZED COST UNREALIZED GAINS UNREALIZED LOSSES FAIR VALUE U.S. tax-exempt securities $ 362.9 $ .8 $ .3 $ 363.4 U.S. corporate securities 80.9 .6 81.5 U.S. government and agency securities 8.0 8.0 Non-U.S. corporate securities 528.1 3.9 532.0 Non-U.S. government securities 192.1 2.0 194.1 Other debt securities 92.8 .3 .1 93.0 $ 1,264.8 $ 7.6 $ .4 $ 1,272.0 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 $2.6, $1.2 and $2.0, and gross realized losses were $.8, $.1 and $.7 for the years ended December 31, 2015, 2014 and 2013, respectively. Marketable debt securities with continuous unrealized losses and their related fair values were as follows: At December 31, 2015 2014 LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER Fair value $ 579.0 $ 249.6 Unrealized losses 1.1 .4 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, 2015 were as follows: Maturities: AMORTIZED COST FAIR VALUE Within one year $ 437.1 $ 437.4 One to five years 1,008.0 1,010.5 Six to ten years .2 .2 $ 1,445.3 $ 1,448.1 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | C. INVENTORIES Inventories include the following: At December 31, 2015 2014 Finished products $ 443.6 $ 512.3 Work in process and raw materials 528.9 587.7 972.5 1,100.0 Less LIFO reserve (176.0 ) (174.3 ) $ 796.5 $ 925.7 Inventories valued using the LIFO method comprised 52% and 47% of consolidated inventories before deducting the LIFO reserve at both December 31, 2015 and 2014, respectively. |
Finance and Other Receivables
Finance and Other Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Finance and Other Receivables | D. FINANCE AND OTHER RECEIVABLES Finance and other receivables include the following: At December 31, 2015 2014 Loans $ 4,011.7 $ 3,968.5 Direct financing leases 2,719.5 2,752.8 Sales-type finance leases 969.8 972.8 Dealer wholesale financing 1,950.1 1,755.8 Operating lease receivables and other 131.9 99.5 Unearned interest: Finance leases (364.6 ) (384.8 ) $ 9,418.4 $ 9,164.6 Less allowance for losses: Loans and leases (99.2 ) (105.5 ) Dealer wholesale financing (7.3 ) (9.0 ) Operating lease receivables and other (8.3 ) (7.5 ) $ 9,303.6 $ 9,042.6 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, 2016 LOANS FINANCE LEASES 2016 $ 1,238.4 $ 1,083.3 2017 1,049.7 883.7 2018 806.5 672.3 2019 544.3 465.4 2020 331.7 261.9 Thereafter 41.1 112.9 $ 4,011.7 $ 3,479.5 Estimated residual values included with finance leases amounted to $209.8 in 2015 and $204.0 in 2014. 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: 2015 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 9.0 $ 11.9 $ 93.6 $ 7.5 $ 122.0 Provision for losses (.8 ) (1.4 ) 11.6 3.0 12.4 Charge-offs (.3 ) (13.6 ) (3.2 ) (17.1 ) Recoveries 3.5 .5 4.0 Currency translation and other (.6 ) (.2 ) (6.2 ) .5 (6.5 ) Balance at December 31 $ 7.3 $ 10.3 $ 88.9 $ 8.3 $ 114.8 2014 DEALER CUSTOMER RETAIL OTHER* TOTAL WHOLESALE RETAIL Balance at January 1 $ 10.4 $ 13.4 $ 97.5 $ 8.0 $ 129.3 Provision for losses .3 (1.4 ) 14.8 1.7 15.4 Charge-offs (.9 ) (18.2 ) (2.2 ) (21.3 ) Recoveries 4.6 .7 5.3 Currency translation and other (.8 ) (.1 ) (5.1 ) (.7 ) (6.7 ) Balance at December 31 $ 9.0 $ 11.9 $ 93.6 $ 7.5 $ 122.0 * Operating lease and other trade receivables. 2013 DEALER CUSTOMER RETAIL WHOLESALE RETAIL OTHER* TOTAL Balance at January 1 $ 11.8 $ 13.4 $ 99.2 $ 5.6 $ 130.0 Provision for losses (.9 ) .2 9.8 3.8 12.9 Charge-offs (.5 ) (21.2 ) (2.8 ) (24.5 ) Recoveries 9.9 1.0 10.9 Currency translation and other (.2 ) (.2 ) .4 Balance at December 31 $ 10.4 $ 13.4 $ 97.5 $ 8.0 $ 129.3 * Operating lease and other trade receivables. Information regarding finance receivables evaluated and determined individually and collectively is as follows: DEALER CUSTOMER RETAIL At December 31, 2015 WHOLESALE RETAIL TOTAL Recorded investment for impaired finance $ 5.0 $ 64.0 $ 69.0 Allowance for impaired finance receivables .3 6.5 6.8 Recorded investment for finance receivables 1,945.1 $ 1,561.3 5,711.1 9,217.5 Allowance for finance receivables determined 7.0 10.3 82.4 99.7 DEALER CUSTOMER RETAIL At December 31, 2014 WHOLESALE RETAIL TOTAL Recorded investment for impaired finance $ 4.9 $ 43.7 $ 48.6 Allowance for impaired finance receivables .5 4.6 5.1 Recorded investment for finance receivables 1,750.9 $ 1,606.5 5,659.1 9,016.5 Allowance for finance receivables determined 8.5 11.9 89.0 109.4 The recorded investment for finance receivables that are on non-accrual status is as follows: At December 31, 2015 2014 Dealer: Wholesale $ 5.0 $ 4.9 Customer retail: Fleet 50.7 34.4 Owner/operator 10.0 8.9 $ 65.7 $ 48.2 Impaired Loans: DEALER CUSTOMER RETAIL At December 31, 2015 WHOLESALE RETAIL FLEET OWNER/ TOTAL Impaired loans with a specific reserve $ 5.0 $ 21.7 $ 2.4 $ 29.1 Associated allowance (.3 ) (3.5 ) (.5 ) (4.3 ) $ 4.7 $ 18.2 $ 1.9 $ 24.8 Impaired loans with no specific reserve 6.5 .3 6.8 Net carrying amount of impaired loans $ 4.7 $ 24.7 $ 2.2 $ 31.6 Average recorded investment $ 4.4 $ 26.6 $ 2.5 $ 33.5 DEALER CUSTOMER RETAIL At December 31, 2014 WHOLESALE RETAIL FLEET OWNER/ TOTAL Impaired loans with a specific reserve $ .5 $ 12.7 $ 2.6 $ 15.8 Associated allowance (.5 ) (1.5 ) (.5 ) (2.5 ) $ 11.2 $ 2.1 $ 13.3 Impaired loans with no specific reserve 4.4 12.3 16.7 Net carrying amount of impaired loans $ 4.4 $ 23.5 $ 2.1 $ 30.0 Average recorded investment $ 8.8 $ 22.5 $ 2.8 $ 34.1 During the period the loans above were considered impaired, interest income recognized on a cash basis is as follows: 2015 2014 2013 Interest income recognized: Dealer wholesale $ .1 $ .1 Customer retail - fleet $ 1.4 1.2 2.9 Customer retail - owner/operator .4 .4 .9 $ 1.8 $ 1.7 $ 3.9 Credit Quality: 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. DEALER CUSTOMER RETAIL At December 31, 2015 WHOLESALE RETAIL FLEET OWNER/ TOTAL Performing $ 1,922.4 $ 1,561.3 $ 4,680.6 $ 996.6 $ 9,160.9 Watch 22.7 27.0 6.9 56.6 At-risk 5.0 53.8 10.2 69.0 $ 1,950.1 $ 1,561.3 $ 4,761.4 $ 1,013.7 $ 9,286.5 DEALER CUSTOMER RETAIL At December 31, 2014 WHOLESALE RETAIL FLEET OWNER/ TOTAL Performing $ 1,739.5 $ 1,606.4 $ 4,430.9 $ 1,193.9 $ 8,970.7 Watch 11.4 .1 21.8 12.5 45.8 At-risk 4.9 34.8 8.9 48.6 $ 1,755.8 $ 1,606.5 $ 4,487.5 $ 1,215.3 $ 9,065.1 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, 2015 WHOLESALE RETAIL FLEET OWNER/ TOTAL Current and up to 30 days past due $ 1,949.8 $ 1,561.3 $ 4,733.6 $ 1,002.7 $ 9,247.4 31 – 60 days past due 8.3 5.4 13.7 Greater than 60 days past due .3 19.5 5.6 25.4 $ 1,950.1 $ 1,561.3 $ 4,761.4 $ 1,013.7 $ 9,286.5 DEALER CUSTOMER RETAIL At December 31, 2014 WHOLESALE RETAIL FLEET OWNER/ TOTAL Current and up to 30 days past due $ 1,752.9 $ 1,606.5 $ 4,464.4 $ 1,200.0 $ 9,023.8 31 – 60 days past due .6 10.6 6.9 18.1 Greater than 60 days past due 2.3 12.5 8.4 23.2 $ 1,755.8 $ 1,606.5 $ 4,487.5 $ 1,215.3 $ 9,065.1 Troubled Debt Restructurings: 2015 2014 RECORDED INVESTMENT RECORDED INVESTMENT PRE-MODIFICATION POST-MODIFICATION PRE-MODIFICATION POST-MODIFICATION Fleet $ 38.3 $ 37.9 $ 24.4 $ 24.1 Owner/operator 6.5 6.5 2.3 2.3 $ 44.8 $ 44.4 $ 26.7 $ 26.4 The effect on the allowance for credit losses from such modifications was not significant at December 31, 2015 and 2014. 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: 2015 2014 Fleet $ 6.7 $ .7 Owner/operator .4 .2 $ 7.1 $ .9 The TDRs that subsequently defaulted did not significantly impact the Company’s allowance for credit losses at December 31, 2015 and 2014. Repossessions: |
Equipment On Operating Leases
Equipment On Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2015 2014 Equipment on operating leases $ 1,282.6 $ 1,222.9 $ 3,335.5 $ 3,269.0 Less allowance for depreciation (290.4 ) (288.4 ) (954.7 ) (963.0 ) $ 992.2 $ 934.5 $ 2,380.8 $ 2,306.0 Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2016 are $542.1, $415.4, $250.4, $108.0, $32.4 and $6.0 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, 2015 2014 Residual value guarantees $ 691.4 $ 629.1 Deferred lease revenues 356.0 341.8 $ 1,047.4 $ 970.9 The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2015, the annual amortization of deferred revenues beginning January 1, 2016 is $134.9, $100.5, $64.3, $41.3, $14.7 and $.3 thereafter. Annual maturities of the RVGs beginning January 1, 2016 are $284.0, $228.0, $97.6, $49.7, $26.1 and $6.0 thereafter. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 Land $ 222.1 $ 239.0 Buildings and improvements 10-40 years 1,061.7 1,082.8 Machinery, equipment and production tooling 3-12 years 3,237.1 3,316.7 Construction in progress 248.4 175.8 4,769.3 4,814.3 Less allowance for depreciation (2,592.9 ) (2,501.0 ) $ 2,176.4 $ 2,313.3 |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Truck, Parts and Other: Accounts payable $ 929.7 $ 1,167.6 Product support liabilities 384.1 355.3 Accrued expenses 231.4 213.5 Accrued capital expenditures 85.7 63.9 Salaries and wages 197.2 224.9 Other 243.6 272.0 $ 2,071.7 $ 2,297.2 |
Product Support Liabilities
Product Support Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Product Support Liabilities | H. PRODUCT SUPPORT LIABILITIES Changes in product support liabilities are summarized as follows: WARRANTY RESERVES 2015 2014 2013 Balance at January 1 $ 310.8 $ 218.7 $ 208.8 Cost accruals 294.8 302.6 220.4 Payments (228.8 ) (210.5 ) (211.5 ) Change in estimates for pre-existing warranties (21.3 ) 16.1 (1.2 ) Currency translation (9.3 ) (16.1 ) 2.2 Balance at December 31 $ 346.2 $ 310.8 $ 218.7 DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS 2015 2014 2013 Balance at January 1 $ 462.0 $ 411.8 $ 331.9 Deferred revenues 333.0 323.7 260.4 Revenues recognized (248.4 ) (246.1 ) (188.3 ) Currency translation (21.8 ) (27.4 ) 7.8 Balance at December 31 $ 524.8 $ 462.0 $ 411.8 Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: WARRANTY RESERVES DEFERRED REVENUES At December 31, 2015 2014 2015 2014 Truck, Parts and Other: Accounts payable, accrued expenses and other $ 241.6 $ 229.1 $ 142.5 $ 126.2 Other liabilities 104.6 81.7 368.2 324.5 Financial Services: Deferred taxes and other liabilities 14.1 11.3 $ 346.2 $ 310.8 $ 524.8 $ 462.0 |
Borrowings And Credit Arrangeme
Borrowings And Credit Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings And Credit Arrangements | I. BORROWINGS AND CREDIT ARRANGEMENTS Financial Services borrowings include the following: 2015 2014 At December 31, EFFECTIVE BORROWINGS EFFECTIVE BORROWINGS Commercial paper .6 % $ 2,620.4 .8 % $ 2,506.0 Bank loans 4.8 % 176.1 5.0 % 135.9 2,796.5 2,641.9 Term notes 1.4 % 5,795.0 1.5 % 5,588.7 1.2 % $ 8,591.5 1.3 % $ 8,230.6 The commercial paper and term notes of $8,415.4 and $8,094.7 at December 31, 2015 and 2014 include a net effect of fair value hedges and unamortized discounts of $(1.1) and $(1.0), respectively. The effective rate is the weighted average rate as of December 31, 2015 and 2014 and includes the effects of interest-rate contracts. The annual maturities of the Financial Services borrowings are as follows: Beginning January 1, 2016 COMMERCIAL BANK LOANS TERM TOTAL 2016 $ 2,621.2 $ 39.5 $ 1,575.9 $ 4,236.6 2017 20.3 2,229.9 2,250.2 2018 46.5 1,356.2 1,402.7 2019 32.0 579.0 611.0 2020 37.8 54.3 92.1 $ 2,621.2 $ 176.1 $ 5,795.3 $ 8,592.6 Interest paid on borrowings was $101.3, $136.3 and $149.3 in 2015, 2014 and 2013, respectively. For the years ended December 31, 2015, 2014 and 2013, the Company capitalized interest on borrowings of nil, $1.3 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 Financial Corp. (PFC), PACCAR Financial Europe and PACCAR Financial Mexico. In November 2015, the Company’s U.S. finance subsidiary, PFC, filed a shelf registration under the Securities Act of 1933. The total amount of medium-term notes outstanding for PFC as of December 31, 2015 was $4,400.0. The registration expires in November 2018 and does not limit the principal amount of debt securities that may be issued during that period. As of December 31, 2015, the Company’s European finance subsidiary, PACCAR Financial Europe, had €269.0 available for issuance under a €1,500.0 medium-term note program listed on the Professional Securities Market of the London Stock Exchange. This program replaced an expiring program in the second quarter of 2015 and is renewable annually through the filing of new listing particulars. In April 2011, PACCAR Financial Mexico (PFM) 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 April 2016 and limits the amount of commercial paper (up to one year) to 5,000.0 pesos. At December 31, 2015, 8,035.0 pesos remained available for issuance. PFM intends to file a new program in April 2016. The Company has line of credit arrangements of $3,435.0, of which $3,256.4 were unused at December 31, 2015. Included in these arrangements are $3,000.0 of syndicated bank facilities, of which $1,000.0 expires in June 2016, $1,000.0 expires in June 2019 and $1,000.0 expires in June 2020. The Company intends to replace these credit facilities on or before expiration 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, 2015. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
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, 2016, annual minimum rent payments under non-cancelable operating leases having initial or remaining terms in excess of one year are $23.2, $11.3, $7.6, $2.6, $1.3 and $1.4 thereafter. For the years ended December 31, 2015, 2014 and 2013, total rental expenses under all leases amounted to $30.5, $34.5 and $34.1, respectively. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 2014 and 2013 were $2.0, $1.2 and $2.3, 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, 2015, PACCAR had standby letters of credit of $16.7, which guarantee various insurance and financing activities. At December 31, 2015, PACCAR’s financial services companies, in the normal course of business, had outstanding commitments to fund new loan and lease transactions amounting to $634.7. The commitments generally expire in 90 days. The Company had other commitments, primarily to purchase production inventory, equipment and energy amounting to $219.9, $61.1 and $4.0 for 2016, 2017 and 2018, respectively, and nil for 2019 and 2020. 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 cooperating with the EC and is preparing its response to the Statement of Objections. 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, 2015. PACCAR is a defendant in various legal proceedings and, in addition, there are various other contingent liabilities arising in the normal course of business. After consultation with legal counsel, management does not anticipate that disposition of these proceedings (except for the EC matter noted above) and contingent liabilities will have a material effect on the consolidated financial statements. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | L. EMPLOYEE BENEFITS Severance Costs: Defined Benefit Pension Plans: 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 $62.9 to its pension plans in 2015 and $81.1 in 2014. The Company expects to contribute in the range of $50.0 to $100.0 to its pension plans in 2016, of which $18.4 is estimated to satisfy minimum funding requirements. Annual benefits expected to be paid beginning January 1, 2016 are $78.9, $81.3, $86.7, $90.6, $97.3 and for the five years thereafter, a total of $571.5. 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, 2015 TARGET LEVEL 1 LEVEL 2 TOTAL Equities: U.S. equities $ 593.8 $ 593.8 Global equities 674.2 674.2 Total equities 50 - 70 % 1,268.0 1,268.0 Fixed income: U.S. fixed income $ 283.4 348.2 631.6 Non-U.S. fixed income 253.7 253.7 Total fixed income 30 - 50 % 283.4 601.9 885.3 Cash and other 8.2 57.5 65.7 Total plan assets $ 291.6 $ 1,927.4 $ 2,219.0 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 % 1,357.7 1,357.7 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 $ 2,032.3 $ 2,309.4 The following additional data relates to all pension plans of the Company: At December 31, 2015 2014 Weighted average assumptions: Discount rate 4.2 % 3.8 % Rate of increase in future compensation levels 3.9 % 3.8 % Assumed long-term rate of return on plan assets 6.5 % 6.5 % The components of the change in projected benefit obligation and change in plan assets are as follows: 2015 2014 Change in projected benefit obligation: Benefit obligation at January 1 $ 2,417.4 $ 1,961.6 Service cost 91.3 67.3 Interest cost 92.2 91.8 Benefits paid (121.3 ) (72.5 ) Actuarial (gain) loss (141.6 ) 412.8 Currency translation and other (35.6 ) (47.6 ) Participant contributions 3.6 4.0 Projected benefit obligation at December 31 $ 2,306.0 $ 2,417.4 Change in plan assets: Fair value of plan assets at January 1 $ 2,309.4 $ 2,108.4 Employer contributions 62.9 81.1 Actual return on plan assets .3 235.8 Benefits paid (121.3 ) (72.5 ) Currency translation and other (35.9 ) (47.4 ) Participant contributions 3.6 4.0 Fair value of plan assets at December 31 $ 2,219.0 $ 2,309.4 Funded status at December 31 $ (87.0 ) $ (108.0 ) 2015 2014 Amounts recorded on balance sheet: Other noncurrent assets $ 27.2 $ 15.0 Other liabilities 114.2 123.0 Accumulated other comprehensive loss: Actuarial loss 386.3 428.9 Prior service cost 3.9 3.9 Net initial transition amount .2 .3 In 2015, the Company provided a one-time lump-sum offer to certain retired employees in the U.S. retirement plan, which resulted in a lump-sum distribution totaling $48.5. Of the December 31, 2015 amounts in accumulated other comprehensive loss, $26.3 of unrecognized actuarial loss and $1.2 of unrecognized prior service cost are expected to be amortized into net pension expense in 2016. The accumulated benefit obligation for all pension plans of the Company was $2,028.2 and $2,113.7 at December 31, 2015 and 2014, respectively. Information for all plans with an accumulated benefit obligation in excess of plan assets is as follows: At December 31, 2015 2014 Projected benefit obligation $ 217.9 $ 224.2 Accumulated benefit obligation 207.7 212.1 Fair value of plan assets 128.8 139.1 The components of pension expense are as follows: Year Ended December 31, 2015 2014 2013 Service cost $ 91.3 $ 67.3 $ 73.5 Interest on projected benefit obligation 92.2 91.8 81.0 Expected return on assets (140.8 ) (128.0 ) (119.4 ) Amortization of prior service costs 1.3 1.2 1.3 Recognized actuarial loss 41.1 20.8 44.0 Curtailment gain (.1 ) (.3 ) Net pension expense $ 85.0 $ 53.1 $ 80.1 Multi-employer Plans: PENSION PLAN COMPANY CONTRIBUTIONS PENSION PLAN EIN NUMBER 2015 2014 2013 Metal and Electrical Engineering Industry Pension Fund 135668 $ 23.0 $ 27.1 $ 24.5 Western Metal Industry Pension Plan 91-6033499 001 2.1 2.0 1.5 Other plans .9 1.0 .9 $ 26.0 $ 30.1 $ 26.9 The Company contributions shown in the table above approximates the multi-employer pension expense for each of the years ended December 31, 2015, 2014 and 2013, 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 which expired on April 30, 2015; a new agreement is currently under negotiation. The Company’s contributions were less than 5% of the total contributions to the plan for the last two reporting periods ending December 2015. 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 97.7% at December 31, 2015, a funding improvement plan effective through 2026 is in place. The funding improvement plan includes a reduction in pension benefits and delays in future benefit increases. 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, 2020. 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 2015, contributions by the Company were 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: |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Domestic $ 1,581.6 $ 1,267.3 $ 827.0 Foreign 755.5 750.3 868.0 $ 2,337.1 $ 2,017.6 $ 1,695.0 The components of the Company’s provision for income taxes include the following: Year Ended December 31, 2015 2014 2013 Current provision: Federal $ 521.8 $ 482.4 $ 191.4 State 61.1 59.0 20.9 Foreign 205.4 215.4 214.1 788.3 756.8 426.4 Deferred (benefit) provision: Federal (57.8 ) (88.3 ) 68.8 State 5.3 .3 18.4 Foreign (2.7 ) (10.0 ) 10.1 (55.2 ) (98.0 ) 97.3 $ 733.1 $ 658.8 $ 523.7 Tax benefits recognized for net operating loss carryforwards were $.6, $16.0 and $4.5 for the years ended 2015, 2014 and 2013, respectively. A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: 2015 2014 2013 Statutory rate 35.0 % 35.0 % 35.0 % Effect of: State 2.1 2.0 1.3 Federal domestic production deduction (1.8 ) (1.8 ) (.9 ) Tax on foreign earnings (2.7 ) (1.6 ) (3.8 ) Other, net (1.2 ) (.9 ) (.7 ) 31.4 % 32.7 % 30.9 % 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 $300.0 as of December 31, 2015. Included in domestic taxable income for 2015, 2014 and 2013 are $249.7, $249.0 and $241.7 of foreign earnings, respectively, which are not indefinitely reinvested, for which domestic taxes of $12.2, $18.6 and $19.5, respectively, were provided to account for the difference between the domestic and foreign tax rate on those earnings. At December 31, 2015, the Company had net operating loss carryforwards of $397.0, of which $186.3 related to foreign subsidiaries and $210.7 related to states in the U.S. The related deferred tax asset was $62.7, for which a $30.7 valuation allowance has been provided. 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, 2015 2014 Assets: Accrued expenses $ 240.7 $ 215.9 Net operating loss and tax credit carryforwards 63.6 67.2 Postretirement benefit plans 44.9 43.3 Allowance for losses on receivables 41.9 43.0 Other 112.5 112.1 503.6 481.5 Valuation allowance (32.9 ) (30.3 ) 470.7 451.2 Liabilities: Financial Services leasing depreciation (810.4 ) (817.2 ) Depreciation and amortization (277.9 ) (289.2 ) Other (29.2 ) (33.5 ) (1,117.5 ) (1,139.9 ) Net deferred tax liability $ (646.8 ) $ (688.7 ) The balance sheet classification of the Company’s deferred tax assets and liabilities are as follows: At December 31, 2015 2014 Truck, Parts and Other: Other current assets $ 134.8 Other noncurrent assets, net $ 135.7 16.0 Accounts payable, accrued expenses and other (.9 ) Other liabilities (25.0 ) (87.2 ) Financial Services: Other assets 44.9 75.0 Deferred taxes and other liabilities (802.4 ) (826.4 ) Net deferred tax liability $ (646.8 ) $ (688.7 ) The Company adopted ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes Cash paid for income taxes was $879.7, $689.9 and $434.0 in 2015, 2014 and 2013, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 2014 2013 Balance at January 1 $ 12.0 $ 13.1 $ 23.4 Additions for tax positions related to the current year 10.3 .9 1.0 Additions for tax positions related to prior years .1 .3 Reductions for tax positions related to prior years (2.0 ) (.9 ) (.7 ) Reductions related to settlements (9.7 ) Lapse of statute of limitations (1.2 ) (1.2 ) (1.2 ) Balance at December 31 $ 19.1 $ 12.0 $ 13.1 The Company had $19.1, $12.0 and $13.1 of unrecognized tax benefits, of which $9.9, $1.1 and $1.5 would impact the effective tax rate, if recognized, as of December 31, 2015, 2014 and 2013, respectively. The Company recognized $1.9, $.8 and $1.1 of income related to interest in 2015, 2014 and 2013, respectively. Accrued interest expense and penalties were $2.8, $4.7 and $5.5 as of December 31, 2015, 2014 and 2013, 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 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, 2015, 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 2005 through 2015. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | N. STOCKHOLDERS’ EQUITY Accumulated Other Comprehensive Income (Loss): DERIVATIVE MARKETABLE PENSION FOREIGN TOTAL Balance at January 1, 2015 $ (13.5 ) $ 5.3 $ (433.1 ) $ (138.5 ) $ (579.8 ) Recorded into AOCI 27.9 (1.7 ) 15.1 (483.8 ) (442.5 ) Reclassified out of AOCI (20.8 ) (1.5 ) 27.6 5.3 Net other comprehensive income (loss) 7.1 (3.2 ) 42.7 (483.8 ) (437.2 ) Balance at December 31, 2015 $ (6.4 ) $ 2.1 $ (390.4 ) $ (622.3 ) $ (1,017.0 ) DERIVATIVE MARKETABLE PENSION FOREIGN TOTAL Balance at January 1, 2014 $ (15.1 ) $ 1.7 $ (262.2 ) $ 284.3 $ 8.7 Recorded into AOCI 20.0 4.2 (185.8 ) (422.8 ) (584.4 ) Reclassified out of AOCI (18.4 ) (.6 ) 14.9 (4.1 ) Net other comprehensive income (loss) 1.6 3.6 (170.9 ) (422.8 ) (588.5 ) Balance at December 31, 2014 $ (13.5 ) $ 5.3 $ (433.1 ) $ (138.5 ) $ (579.8 ) DERIVATIVE MARKETABLE PENSION FOREIGN TOTAL Balance at January 1, 2013 $ (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 income (loss) 12.1 (4.9 ) 234.3 (73.3 ) 168.2 Balance at December 31, 2013 $ (15.1 ) $ 1.7 $ (262.2 ) $ 284.3 $ 8.7 Reclassifications out of AOCI during the years ended December 31, 2015, 2014 and 2013 are as follows: AMOUNT RECLASSIFIED OUT OF AOCI AOCI COMPONENTS LINE ITEM IN THE CONSOLIDATED STATEMENTS OF INCOME 2015 2014 2013 Unrealized (gains) and losses on derivative contracts: Truck, Parts and Other Foreign-exchange contracts Net sales and revenues $ (.1 ) Cost of sales and revenues 3.4 $ .3 $ 1.0 Interest and other expense, net (4.1 ) (2.1 ) (.6 ) Financial Services Interest-rate contracts Interest and other borrowing expenses (28.5 ) (21.7 ) (36.0 ) Pre-tax expense reduction (29.3 ) (23.5 ) (35.6 ) Tax expense 8.5 5.1 10.8 After-tax expense reduction (20.8 ) (18.4 ) (24.8 ) Unrealized (gains) and losses on marketable debt securities: Marketable debt securities Investment income (2.1 ) (.9 ) 1.7 Tax expense (benefit) .6 .3 (.5 ) After-tax income (increase) decrease (1.5 ) (.6 ) 1.2 Pension plans: Truck, Parts and Other Actuarial loss Cost of sales and revenues 22.4 11.1 21.4 Selling, general and administrative 17.1 9.0 20.3 39.5 20.1 41.7 Prior service costs Cost of sales and revenues 1.0 1.0 .4 Selling, general and administrative .2 .2 .6 Research and development .3 1.2 1.2 1.3 Financial Services Actuarial loss Selling, general and administrative 1.7 .7 2.3 Pre-tax expense increase 42.4 22.0 45.3 Tax benefit (14.8 ) (7.1 ) (15.8 ) After-tax expense increase 27.6 14.9 29.5 Foreign currency translation: Truck, Parts and Other Interest and other expense, net (1.1 ) Financial Services Interest and other borrowing expenses (.9 ) Expense reduction (2.0 ) Total reclassifications out of AOCI $ 5.3 $ (4.1 ) $ 3.9 Other Capital Stock Changes : |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
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: At December 31, 2015, the notional amount of the Company’s interest-rate contracts was $3,303.5. Notional maturities for all interest-rate Foreign-Exchange Contracts: The following table presents the balance sheet classification, fair value, gross and pro-forma net amounts of derivative financial instruments: At December 31, 2015 2014 ASSETS LIABILITIES ASSETS LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets $ 132.2 $ 82.7 Deferred taxes and other liabilities $ 46.7 $ 45.7 Foreign-exchange contracts: Truck, Parts and Other: Other current assets 3.9 1.2 Accounts payable, accrued expenses and other .2 1.9 Total $ 136.1 $ 46.9 $ 83.9 $ 47.6 Economic hedges: Foreign-exchange contracts: Truck, Parts and Other: Other current assets $ .9 $ 1.9 Accounts payable, accrued expenses and other $ .3 $ .9 Financial Services: Other assets .3 3.4 Deferred taxes and other liabilities 1.0 Total $ 1.2 $ 1.3 $ 5.3 $ .9 Gross amounts recognized in Balance Sheet $ 137.3 $ 48.2 $ 89.2 $ 48.5 Less amounts not offset in financial instruments: Truck, Parts and Other: Foreign-exchange contracts (.4 ) (.4 ) (.9 ) (.9 ) Financial Services: Interest-rate contracts (3.3 ) (3.3 ) (3.9 ) (3.9 ) Foreign-exchange contracts (.2 ) (.2 ) Pro-forma net amount $ 133.4 $ 44.3 $ 84.4 $ 43.7 Fair Value Hedges: Year Ended December 31, 2015 2014 2013 Interest-rate swaps $ (.9 ) $ .1 $ .7 Term notes .2 (2.6 ) (5.1 ) Cash Flow Hedges: The following table presents the pre-tax effects of derivative instruments recognized in other comprehensive (loss) income (OCI): Year Ended December 31, 2015 2014 2013 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- Gain (loss) recognized in OCI: Truck, Parts and Other $ 4.9 $ 1.7 $ (1.2 ) Financial Services $ 33.8 $ 24.4 $ 54.4 Total $ 33.8 $ 4.9 $ 24.4 $ 1.7 $ 54.4 $ (1.2 ) Expense (income) reclassified out of AOCI into income was as follows: Year Ended December 31, 2015 2014 2013 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- Truck, Parts and Other: Net sales and revenues $ (.1 ) Cost of sales and revenues 3.4 $ .3 $ 1.0 Interest and other expense, net (4.1 ) (2.1 ) (.6 ) Financial Services: Interest and other borrowing expenses $ (28.5 ) $ (21.7 ) $ (36.0 ) Total $ (28.5 ) $ (.8 ) $ (21.7 ) $ (1.8 ) $ (36.0 ) $ .4 The amount of loss recorded in AOCI at December 31, 2015 that is estimated to be reclassified into earnings in the following 12 months if interest rates and exchange rates remain unchanged is approximately $6.0, 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. The amount of gains or losses reclassified out of AOCI into net income based on the probability that the original forecasted transactions would not occur was nil for the years ended December 31, 2015, 2014 and 2013. Economic Hedges: The (income) expense recognized in earnings related to economic hedges was as follows: Year Ended December 31, 2015 2014 2013 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- Truck, Parts and Other: Cost of sales and revenues $ (.7 ) $ (5.3 ) $ (1.3 ) Interest and other expense, net 3.0 3.8 .3 Financial Services: Interest and other borrowing expenses (7.6 ) 4.2 $ (1.5 ) (9.6 ) Selling, general and administrative (2.3 ) 5.2 Total $ (7.6 ) $ 7.9 $ (1.5 ) $ (10.6 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015. 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 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: 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, 2015 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 505.4 $ 505.4 U.S. corporate securities 76.7 76.7 U.S. government and agency securities $ 15.1 .6 15.7 Non-U.S. corporate securities 587.0 587.0 Non-U.S. government securities 193.7 193.7 Other debt securities 69.6 69.6 Total marketable debt securities $ 15.1 $ 1,433.0 $ 1,448.1 Derivatives Cross currency swaps $ 130.5 $ 130.5 Interest-rate swaps 1.7 1.7 Foreign-exchange contracts 5.1 5.1 Total derivative assets $ 137.3 $ 137.3 Liabilities: Derivatives Cross currency swaps $ 37.2 $ 37.2 Interest-rate swaps 9.5 9.5 Foreign-exchange contracts 1.5 1.5 Total derivative liabilities $ 48.2 $ 48.2 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 .3 8.0 Non-U.S. corporate securities 532.0 532.0 Non-U.S. government securities 194.1 194.1 Other debt securities 93.0 93.0 Total marketable debt securities $ 7.7 $ 1,264.3 $ 1,272.0 Derivatives Cross currency swaps $ 81.7 $ 81.7 Interest-rate swaps 1.0 1.0 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 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: Financial Services Net Receivables: 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, 2015 2014 CARRYING FAIR CARRYING FAIR Assets: Financial Services fixed rate loans $ 3,660.6 $ 3,729.0 $ 3,627.5 $ 3,683.3 Liabilities: Financial Services fixed rate debt 4,167.9 4,192.2 3,713.4 3,737.7 |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
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 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, 2015, the maximum number of shares available for future grants was 15.5 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. 2015 2014 2013 Risk-free interest rate 1.35 % 1.51 % .88 % Expected volatility 28 % 34 % 44 % Expected dividend yield 3.4 % 3.4 % 3.3 % Expected term 5 years 5 years 5 years Weighted average grant date fair value of options per share $ 10.98 $ 13.17 $ 13.78 The fair value of options granted was $6.3, $8.6 and $11.2 for the years ended December 31, 2015, 2014 and 2013, respectively. The fair value of options vested during the years ended December 31, 2015, 2014 and 2013 was $9.5, $10.5 and $8.8, respectively. A summary of activity under the Company’s stock plans is presented below: 2015 2014 2013 Intrinsic value of options exercised $ 14.1 $ 20.9 $ 19.6 Cash received from stock option exercises 21.8 29.1 31.0 Tax benefit related to stock award exercises 3.5 4.4 3.9 Stock based compensation 14.6 16.2 14.0 Tax benefit related to stock based compensation 5.1 5.6 4.9 The summary of options as of December 31, 2015 and changes during the year then ended are presented below: NUMBER PER SHARE REMAINING AGGREGATE Options outstanding at January 1 4,536,700 $ 44.25 Granted 569,500 62.46 Exercised (582,300 ) 37.50 Cancelled (102,300 ) 55.17 Options outstanding at December 31 4,421,600 $ 47.23 5.69 $ 17.5 Vested and expected to vest 4,325,600 $ 46.93 5.63 $ 17.5 Exercisable 2,590,700 $ 41.14 4.04 $ 17.5 * 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, 2015 and changes during the year then ended is presented below: NONVESTED SHARES NUMBER OF SHARES GRANT DATE Nonvested awards outstanding at January 1 185,700 $ 51.60 Granted 112,000 63.39 Vested (115,800 ) 51.70 Nonvested awards outstanding at December 31 181,900 $ 58.79 * Weighted Average As of December 31, 2015, there was $5.9 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 $1.4 is expected to be recognized over a remaining weighted average vesting period of 1.51 years. The dilutive and antidilutive options are shown separately in the table below: Year Ended December 31, 2015 2014 2013 Additional shares 906,100 1,120,500 932,000 Antidilutive options 1,180,400 673,700 873,800 |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2015 | |
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: Financial Services: Other: Geographic Area Data 2015 2014 2013 Net sales and revenues: United States $ 11,408.3 $ 10,106.3 $ 8,147.6 Europe 4,515.9 4,835.7 4,967.2 Other 3,190.9 4,055.0 4,009.0 $ 19,115.1 $ 18,997.0 $ 17,123.8 Property, plant and equipment, net: United States $ 1,140.5 $ 1,132.0 $ 1,183.1 The Netherlands 438.7 517.4 620.0 Other 597.2 663.9 710.2 $ 2,176.4 $ 2,313.3 $ 2,513.3 Equipment on operating leases, net: United States $ 1,287.9 $ 1,226.6 $ 1,153.8 Mexico 330.0 346.9 361.6 Germany 321.9 347.0 404.1 United Kingdom 321.3 342.2 414.9 Other 1,111.9 977.8 994.0 $ 3,373.0 $ 3,240.5 $ 3,328.4 Business Segment Data 2015 2014 2013 Net sales and revenues: Truck $ 15,568.6 $ 15,330.4 $ 13,627.7 Less intersegment (786.1 ) (736.4 ) (624.8 ) External customers 14,782.5 14,594.0 13,002.9 Parts 3,104.7 3,125.9 2,868.3 Less intersegment (44.6 ) (48.4 ) (46.1 ) External customers 3,060.1 3,077.5 2,822.2 Other 100.2 121.3 123.8 17,942.8 17,792.8 15,948.9 Financial Services 1,172.3 1,204.2 1,174.9 $ 19,115.1 $ 18,997.0 $ 17,123.8 Income before income taxes: Truck $ 1,440.3 $ 1,160.1 $ 936.7 Parts 555.6 496.7 416.0 Other (43.2 ) (31.9 ) (26.5 ) 1,952.7 1,624.9 1,326.2 Financial Services 362.6 370.4 340.2 Investment income 21.8 22.3 28.6 $ 2,337.1 $ 2,017.6 $ 1,695.0 Depreciation and amortization: Truck $ 399.8 $ 415.0 $ 352.9 Parts 6.2 5.9 5.3 Other 14.9 11.8 10.2 420.9 432.7 368.4 Financial Services 486.2 485.0 442.3 $ 907.1 $ 917.7 $ 810.7 Expenditures for long-lived assets: Truck $ 660.0 $ 504.9 $ 812.9 Parts 24.9 9.9 6.8 Other 17.7 12.1 20.8 702.6 526.9 840.5 Financial Services 1,044.4 935.3 931.2 $ 1,747.0 $ 1,462.2 $ 1,771.7 Segment assets: Truck $ 4,472.3 $ 4,871.1 $ 5,123.3 Parts 793.3 787.2 748.4 Other 211.6 106.1 298.5 Cash and marketable securities 3,378.0 2,937.1 2,925.2 8,855.2 8,701.5 9,095.4 Financial Services 12,254.6 11,917.3 11,630.1 $ 21,109.8 $ 20,618.8 $ 20,725.5 |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Operations | Description of Operations: |
Principles of Consolidation | Principles of Consolidation: |
Use of Estimates | Use of Estimates: |
Revenue Recognition | Revenue Recognition: Truck, Parts and Other: Financial Services: Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at December 31, 2015 or December 31, 2014. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Marketable Debt Securities | Marketable Debt Securities : 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 third-party 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 : Finance and Other Receivables : Loans Finance leases Dealer wholesale financing Operating lease receivables and other |
Allowance for Credit Losses | Allowance for Credit Losses: Truck, Parts and Other: Financial Services: The Company modifies loans and finance leases in the normal course 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. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies loans and finance leases for credit reasons and grants a concession, the modifications are classified as troubled debt restructurings (TDR). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs. On average, modifications extended contractual terms by approximately seven months in 2015 and five months in 2014 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at December 31, 2015 and 2014. The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and direct 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 periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over 36 to 60 months, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves. The Company individually evaluates certain finance receivables for impairment. Finance receivables that are evaluated individually for impairment consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. A finance receivable is impaired if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. In addition, all retail loans and leases which have been classified as TDRs and all customer accounts over 90 days past due are considered impaired. Generally, impaired accounts are on non-accrual status. Impaired accounts classified as TDRs which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments. Impaired receivables are generally considered collateral dependent. Large balance retail and all wholesale impaired receivables are individually evaluated to determine the appropriate reserve for losses. The determination of reserves for large balance impaired receivables considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s recorded investment, no reserve is recorded. Small balance impaired receivables with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below. The Company evaluates finance receivables that are not individually impaired on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data and current market conditions. Information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse. The Company has developed a range of loss estimates for 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, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the recorded investment. |
Inventories | Inventories: last-in, |
Equipment on Operating Lease | Equipment on Operating Leases: |
Property, Plant and Equipment | Property, Plant and Equipment: |
Long-lived Assets and Goodwill | Long-lived Assets and Goodwill: |
Product Support Liabilities | Product Support Liabilities: |
Derivative Financial Instruments | Derivative Financial Instruments: 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: |
Earnings Per Share | Earnings per Share: |
New Accounting Pronouncements | New Accounting Pronouncements: Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In November 2015, FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The FASB also issued the following standards, none of which are expected to have a material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION EFFECTIVE DATE* 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. January 1, 2017 2015-07 Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). January 1, 2016 2015-05 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. January 1, 2016 2015-03 Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. January 1, 2016 2015-15 Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measure of Debt Issuance Costs Associated with Line-of-Credit Arrangements. January 1, 2016 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. January 1, 2016 * The Company expects to adopt on the effective date. |
Investments in Marketable Deb28
Investments in Marketable Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Debt Securities | Marketable debt securities consisted of the following at December 31: 2015 AMORTIZED COST UNREALIZED GAINS UNREALIZED LOSSES FAIR VALUE U.S. tax-exempt securities $ 505.0 $ .7 $ .3 $ 505.4 U.S. corporate securities 76.7 .1 .1 76.7 U.S. government and agency securities 15.7 .1 .1 15.7 Non-U.S. corporate securities 585.6 1.8 .4 587.0 Non-U.S. government securities 192.7 1.1 .1 193.7 Other debt securities 69.6 .1 .1 69.6 $ 1,445.3 $ 3.9 $ 1.1 $ 1,448.1 2014 AMORTIZED COST UNREALIZED GAINS UNREALIZED LOSSES FAIR VALUE U.S. tax-exempt securities $ 362.9 $ .8 $ .3 $ 363.4 U.S. corporate securities 80.9 .6 81.5 U.S. government and agency securities 8.0 8.0 Non-U.S. corporate securities 528.1 3.9 532.0 Non-U.S. government securities 192.1 2.0 194.1 Other debt securities 92.8 .3 .1 93.0 $ 1,264.8 $ 7.6 $ .4 $ 1,272.0 |
Marketable Debt Securities Continuous Unrealized Losses | Marketable debt securities with continuous unrealized losses and their related fair values were as follows: At December 31, 2015 2014 LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER Fair value $ 579.0 $ 249.6 Unrealized losses 1.1 .4 |
Contractual Maturities of Debt Securities | Contractual maturities at December 31, 2015 were as follows: Maturities: AMORTIZED COST FAIR VALUE Within one year $ 437.1 $ 437.4 One to five years 1,008.0 1,010.5 Six to ten years .2 .2 $ 1,445.3 $ 1,448.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories Table | Inventories include the following: At December 31, 2015 2014 Finished products $ 443.6 $ 512.3 Work in process and raw materials 528.9 587.7 972.5 1,100.0 Less LIFO reserve (176.0 ) (174.3 ) $ 796.5 $ 925.7 |
Finance and Other Receivables (
Finance and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Finance and Other Receivables | Finance and other receivables include the following: At December 31, 2015 2014 Loans $ 4,011.7 $ 3,968.5 Direct financing leases 2,719.5 2,752.8 Sales-type finance leases 969.8 972.8 Dealer wholesale financing 1,950.1 1,755.8 Operating lease receivables and other 131.9 99.5 Unearned interest: Finance leases (364.6 ) (384.8 ) $ 9,418.4 $ 9,164.6 Less allowance for losses: Loans and leases (99.2 ) (105.5 ) Dealer wholesale financing (7.3 ) (9.0 ) Operating lease receivables and other (8.3 ) (7.5 ) $ 9,303.6 $ 9,042.6 |
Annual Minimum Payments Due on Finance Receivables | Annual minimum payments due on finance receivables are as follows: Beginning January 1, 2016 LOANS FINANCE LEASES 2016 $ 1,238.4 $ 1,083.3 2017 1,049.7 883.7 2018 806.5 672.3 2019 544.3 465.4 2020 331.7 261.9 Thereafter 41.1 112.9 $ 4,011.7 $ 3,479.5 |
Allowance for Credit Losses | Allowance for Credit Losses: 2015 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 9.0 $ 11.9 $ 93.6 $ 7.5 $ 122.0 Provision for losses (.8 ) (1.4 ) 11.6 3.0 12.4 Charge-offs (.3 ) (13.6 ) (3.2 ) (17.1 ) Recoveries 3.5 .5 4.0 Currency translation and other (.6 ) (.2 ) (6.2 ) .5 (6.5 ) Balance at December 31 $ 7.3 $ 10.3 $ 88.9 $ 8.3 $ 114.8 2014 DEALER CUSTOMER RETAIL OTHER* TOTAL WHOLESALE RETAIL Balance at January 1 $ 10.4 $ 13.4 $ 97.5 $ 8.0 $ 129.3 Provision for losses .3 (1.4 ) 14.8 1.7 15.4 Charge-offs (.9 ) (18.2 ) (2.2 ) (21.3 ) Recoveries 4.6 .7 5.3 Currency translation and other (.8 ) (.1 ) (5.1 ) (.7 ) (6.7 ) Balance at December 31 $ 9.0 $ 11.9 $ 93.6 $ 7.5 $ 122.0 * Operating lease and other trade receivables. 2013 DEALER CUSTOMER RETAIL WHOLESALE RETAIL OTHER* TOTAL Balance at January 1 $ 11.8 $ 13.4 $ 99.2 $ 5.6 $ 130.0 Provision for losses (.9 ) .2 9.8 3.8 12.9 Charge-offs (.5 ) (21.2 ) (2.8 ) (24.5 ) Recoveries 9.9 1.0 10.9 Currency translation and other (.2 ) (.2 ) .4 Balance at December 31 $ 10.4 $ 13.4 $ 97.5 $ 8.0 $ 129.3 * 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 RETAIL At December 31, 2015 WHOLESALE RETAIL TOTAL Recorded investment for impaired finance $ 5.0 $ 64.0 $ 69.0 Allowance for impaired finance receivables .3 6.5 6.8 Recorded investment for finance receivables 1,945.1 $ 1,561.3 5,711.1 9,217.5 Allowance for finance receivables determined 7.0 10.3 82.4 99.7 DEALER CUSTOMER RETAIL At December 31, 2014 WHOLESALE RETAIL TOTAL Recorded investment for impaired finance $ 4.9 $ 43.7 $ 48.6 Allowance for impaired finance receivables .5 4.6 5.1 Recorded investment for finance receivables 1,750.9 $ 1,606.5 5,659.1 9,016.5 Allowance for finance receivables determined 8.5 11.9 89.0 109.4 |
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, 2015 2014 Dealer: Wholesale $ 5.0 $ 4.9 Customer retail: Fleet 50.7 34.4 Owner/operator 10.0 8.9 $ 65.7 $ 48.2 |
Impaired Loans and Specific Reserve | The recorded investment of impaired loans as of December 31, 2015 and 2014 was not significantly different than the unpaid principal balance. DEALER CUSTOMER RETAIL At December 31, 2015 WHOLESALE RETAIL FLEET OWNER/ TOTAL Impaired loans with a specific reserve $ 5.0 $ 21.7 $ 2.4 $ 29.1 Associated allowance (.3 ) (3.5 ) (.5 ) (4.3 ) $ 4.7 $ 18.2 $ 1.9 $ 24.8 Impaired loans with no specific reserve 6.5 .3 6.8 Net carrying amount of impaired loans $ 4.7 $ 24.7 $ 2.2 $ 31.6 Average recorded investment $ 4.4 $ 26.6 $ 2.5 $ 33.5 DEALER CUSTOMER RETAIL At December 31, 2014 WHOLESALE RETAIL FLEET OWNER/ TOTAL Impaired loans with a specific reserve $ .5 $ 12.7 $ 2.6 $ 15.8 Associated allowance (.5 ) (1.5 ) (.5 ) (2.5 ) $ 11.2 $ 2.1 $ 13.3 Impaired loans with no specific reserve 4.4 12.3 16.7 Net carrying amount of impaired loans $ 4.4 $ 23.5 $ 2.1 $ 30.0 Average recorded investment $ 8.8 $ 22.5 $ 2.8 $ 34.1 |
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: 2015 2014 2013 Interest income recognized: Dealer wholesale $ .1 $ .1 Customer retail - fleet $ 1.4 1.2 2.9 Customer retail - owner/operator .4 .4 .9 $ 1.8 $ 1.7 $ 3.9 |
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, 2015 WHOLESALE RETAIL FLEET OWNER/ TOTAL Performing $ 1,922.4 $ 1,561.3 $ 4,680.6 $ 996.6 $ 9,160.9 Watch 22.7 27.0 6.9 56.6 At-risk 5.0 53.8 10.2 69.0 $ 1,950.1 $ 1,561.3 $ 4,761.4 $ 1,013.7 $ 9,286.5 DEALER CUSTOMER RETAIL At December 31, 2014 WHOLESALE RETAIL FLEET OWNER/ TOTAL Performing $ 1,739.5 $ 1,606.4 $ 4,430.9 $ 1,193.9 $ 8,970.7 Watch 11.4 .1 21.8 12.5 45.8 At-risk 4.9 34.8 8.9 48.6 $ 1,755.8 $ 1,606.5 $ 4,487.5 $ 1,215.3 $ 9,065.1 |
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, 2015 WHOLESALE RETAIL FLEET OWNER/ TOTAL Current and up to 30 days past due $ 1,949.8 $ 1,561.3 $ 4,733.6 $ 1,002.7 $ 9,247.4 31 – 60 days past due 8.3 5.4 13.7 Greater than 60 days past due .3 19.5 5.6 25.4 $ 1,950.1 $ 1,561.3 $ 4,761.4 $ 1,013.7 $ 9,286.5 DEALER CUSTOMER RETAIL At December 31, 2014 WHOLESALE RETAIL FLEET OWNER/ TOTAL Current and up to 30 days past due $ 1,752.9 $ 1,606.5 $ 4,464.4 $ 1,200.0 $ 9,023.8 31 – 60 days past due .6 10.6 6.9 18.1 Greater than 60 days past due 2.3 12.5 8.4 23.2 $ 1,755.8 $ 1,606.5 $ 4,487.5 $ 1,215.3 $ 9,065.1 |
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: 2015 2014 RECORDED INVESTMENT RECORDED INVESTMENT PRE-MODIFICATION POST-MODIFICATION PRE-MODIFICATION POST-MODIFICATION Fleet $ 38.3 $ 37.9 $ 24.4 $ 24.1 Owner/operator 6.5 6.5 2.3 2.3 $ 44.8 $ 44.4 $ 26.7 $ 26.4 |
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: 2015 2014 Fleet $ 6.7 $ .7 Owner/operator .4 .2 $ 7.1 $ .9 |
Equipment On Operating Leases (
Equipment On Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2015 2014 Equipment on operating leases $ 1,282.6 $ 1,222.9 $ 3,335.5 $ 3,269.0 Less allowance for depreciation (290.4 ) (288.4 ) (954.7 ) (963.0 ) $ 992.2 $ 934.5 $ 2,380.8 $ 2,306.0 |
Residual Value Obligation and Deferred Lease Revenue | These amounts are summarized below: TRUCK, PARTS AND OTHER At December 31, 2015 2014 Residual value guarantees $ 691.4 $ 629.1 Deferred lease revenues 356.0 341.8 $ 1,047.4 $ 970.9 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant And Equipment | Property, plant and equipment include the following: At December 31, USEFUL LIVES 2015 2014 Land $ 222.1 $ 239.0 Buildings and improvements 10-40 years 1,061.7 1,082.8 Machinery, equipment and production tooling 3-12 years 3,237.1 3,316.7 Construction in progress 248.4 175.8 4,769.3 4,814.3 Less allowance for depreciation (2,592.9 ) (2,501.0 ) $ 2,176.4 $ 2,313.3 |
Accounts Payable, Accrued Exp33
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other | Accounts payable, accrued expenses and other include the following: At December 31, 2015 2014 Truck, Parts and Other: Accounts payable $ 929.7 $ 1,167.6 Product support liabilities 384.1 355.3 Accrued expenses 231.4 213.5 Accrued capital expenditures 85.7 63.9 Salaries and wages 197.2 224.9 Other 243.6 272.0 $ 2,071.7 $ 2,297.2 |
Product Support Liabilities (Ta
Product Support Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Changes in Product Support Liabilities | Changes in product support liabilities are summarized as follows: WARRANTY RESERVES 2015 2014 2013 Balance at January 1 $ 310.8 $ 218.7 $ 208.8 Cost accruals 294.8 302.6 220.4 Payments (228.8 ) (210.5 ) (211.5 ) Change in estimates for pre-existing warranties (21.3 ) 16.1 (1.2 ) Currency translation (9.3 ) (16.1 ) 2.2 Balance at December 31 $ 346.2 $ 310.8 $ 218.7 DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS 2015 2014 2013 Balance at January 1 $ 462.0 $ 411.8 $ 331.9 Deferred revenues 333.0 323.7 260.4 Revenues recognized (248.4 ) (246.1 ) (188.3 ) Currency translation (21.8 ) (27.4 ) 7.8 Balance at December 31 $ 524.8 $ 462.0 $ 411.8 |
Product Support Liabilities | Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: WARRANTY RESERVES DEFERRED REVENUES At December 31, 2015 2014 2015 2014 Truck, Parts and Other: Accounts payable, accrued expenses and other $ 241.6 $ 229.1 $ 142.5 $ 126.2 Other liabilities 104.6 81.7 368.2 324.5 Financial Services: Deferred taxes and other liabilities 14.1 11.3 $ 346.2 $ 310.8 $ 524.8 $ 462.0 |
Borrowings And Credit Arrange35
Borrowings And Credit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Financial Services Borrowings | Financial Services borrowings include the following: 2015 2014 At December 31, EFFECTIVE BORROWINGS EFFECTIVE BORROWINGS Commercial paper .6 % $ 2,620.4 .8 % $ 2,506.0 Bank loans 4.8 % 176.1 5.0 % 135.9 2,796.5 2,641.9 Term notes 1.4 % 5,795.0 1.5 % 5,588.7 1.2 % $ 8,591.5 1.3 % $ 8,230.6 |
Annual Maturities of Financial Services Borrowings | The annual maturities of the Financial Services borrowings are as follows: Beginning January 1, 2016 COMMERCIAL BANK LOANS TERM TOTAL 2016 $ 2,621.2 $ 39.5 $ 1,575.9 $ 4,236.6 2017 20.3 2,229.9 2,250.2 2018 46.5 1,356.2 1,402.7 2019 32.0 579.0 611.0 2020 37.8 54.3 92.1 $ 2,621.2 $ 176.1 $ 5,795.3 $ 8,592.6 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 TARGET LEVEL 1 LEVEL 2 TOTAL Equities: U.S. equities $ 593.8 $ 593.8 Global equities 674.2 674.2 Total equities 50 - 70 % 1,268.0 1,268.0 Fixed income: U.S. fixed income $ 283.4 348.2 631.6 Non-U.S. fixed income 253.7 253.7 Total fixed income 30 - 50 % 283.4 601.9 885.3 Cash and other 8.2 57.5 65.7 Total plan assets $ 291.6 $ 1,927.4 $ 2,219.0 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 % 1,357.7 1,357.7 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 $ 2,032.3 $ 2,309.4 |
Weighted Average Assumptions of Pension Plans | The following additional data relates to all pension plans of the Company: At December 31, 2015 2014 Weighted average assumptions: Discount rate 4.2 % 3.8 % Rate of increase in future compensation levels 3.9 % 3.8 % Assumed long-term rate of return on plan assets 6.5 % 6.5 % |
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: 2015 2014 Change in projected benefit obligation: Benefit obligation at January 1 $ 2,417.4 $ 1,961.6 Service cost 91.3 67.3 Interest cost 92.2 91.8 Benefits paid (121.3 ) (72.5 ) Actuarial (gain) loss (141.6 ) 412.8 Currency translation and other (35.6 ) (47.6 ) Participant contributions 3.6 4.0 Projected benefit obligation at December 31 $ 2,306.0 $ 2,417.4 Change in plan assets: Fair value of plan assets at January 1 $ 2,309.4 $ 2,108.4 Employer contributions 62.9 81.1 Actual return on plan assets .3 235.8 Benefits paid (121.3 ) (72.5 ) Currency translation and other (35.9 ) (47.4 ) Participant contributions 3.6 4.0 Fair value of plan assets at December 31 $ 2,219.0 $ 2,309.4 Funded status at December 31 $ (87.0 ) $ (108.0 ) |
Amounts Recorded on Balance Sheets | The components of pension expense are as follows: Year Ended December 31, 2015 2014 2013 Service cost $ 91.3 $ 67.3 $ 73.5 Interest on projected benefit obligation 92.2 91.8 81.0 Expected return on assets (140.8 ) (128.0 ) (119.4 ) Amortization of prior service costs 1.3 1.2 1.3 Recognized actuarial loss 41.1 20.8 44.0 Curtailment gain (.1 ) (.3 ) Net pension expense $ 85.0 $ 53.1 $ 80.1 |
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, 2015 2014 Projected benefit obligation $ 217.9 $ 224.2 Accumulated benefit obligation 207.7 212.1 Fair value of plan assets 128.8 139.1 |
Components of Pension Expense | The components of pension expense are as follows: Year Ended December 31, 2015 2014 2013 Service cost $ 91.3 $ 67.3 $ 73.5 Interest on projected benefit obligation 92.2 91.8 81.0 Expected return on assets (140.8 ) (128.0 ) (119.4 ) Amortization of prior service costs 1.3 1.2 1.3 Recognized actuarial loss 41.1 20.8 44.0 Curtailment gain (.1 ) (.3 ) Net pension expense $ 85.0 $ 53.1 $ 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 PLAN COMPANY CONTRIBUTIONS PENSION PLAN EIN NUMBER 2015 2014 2013 Metal and Electrical Engineering Industry Pension Fund 135668 $ 23.0 $ 27.1 $ 24.5 Western Metal Industry Pension Plan 91-6033499 001 2.1 2.0 1.5 Other plans .9 1.0 .9 $ 26.0 $ 30.1 $ 26.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Domestic $ 1,581.6 $ 1,267.3 $ 827.0 Foreign 755.5 750.3 868.0 $ 2,337.1 $ 2,017.6 $ 1,695.0 |
Components of Provision for Income Taxes | The components of the Company’s provision for income taxes include the following: Year Ended December 31, 2015 2014 2013 Current provision: Federal $ 521.8 $ 482.4 $ 191.4 State 61.1 59.0 20.9 Foreign 205.4 215.4 214.1 788.3 756.8 426.4 Deferred (benefit) provision: Federal (57.8 ) (88.3 ) 68.8 State 5.3 .3 18.4 Foreign (2.7 ) (10.0 ) 10.1 (55.2 ) (98.0 ) 97.3 $ 733.1 $ 658.8 $ 523.7 |
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: 2015 2014 2013 Statutory rate 35.0 % 35.0 % 35.0 % Effect of: State 2.1 2.0 1.3 Federal domestic production deduction (1.8 ) (1.8 ) (.9 ) Tax on foreign earnings (2.7 ) (1.6 ) (3.8 ) Other, net (1.2 ) (.9 ) (.7 ) 31.4 % 32.7 % 30.9 % |
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, 2015 2014 Assets: Accrued expenses $ 240.7 $ 215.9 Net operating loss and tax credit carryforwards 63.6 67.2 Postretirement benefit plans 44.9 43.3 Allowance for losses on receivables 41.9 43.0 Other 112.5 112.1 503.6 481.5 Valuation allowance (32.9 ) (30.3 ) 470.7 451.2 Liabilities: Financial Services leasing depreciation (810.4 ) (817.2 ) Depreciation and amortization (277.9 ) (289.2 ) Other (29.2 ) (33.5 ) (1,117.5 ) (1,139.9 ) Net deferred tax liability $ (646.8 ) $ (688.7 ) The balance sheet classification of the Company’s deferred tax assets and liabilities are as follows: At December 31, 2015 2014 Truck, Parts and Other: Other current assets $ 134.8 Other noncurrent assets, net $ 135.7 16.0 Accounts payable, accrued expenses and other (.9 ) Other liabilities (25.0 ) (87.2 ) Financial Services: Other assets 44.9 75.0 Deferred taxes and other liabilities (802.4 ) (826.4 ) Net deferred tax liability $ (646.8 ) $ (688.7 ) |
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: 2015 2014 2013 Balance at January 1 $ 12.0 $ 13.1 $ 23.4 Additions for tax positions related to the current year 10.3 .9 1.0 Additions for tax positions related to prior years .1 .3 Reductions for tax positions related to prior years (2.0 ) (.9 ) (.7 ) Reductions related to settlements (9.7 ) Lapse of statute of limitations (1.2 ) (1.2 ) (1.2 ) Balance at December 31 $ 19.1 $ 12.0 $ 13.1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (loss) by Component | The components of AOCI and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets and the Consolidated Statements of Stockholders’ Equity, consisted of the following: DERIVATIVE MARKETABLE PENSION FOREIGN TOTAL Balance at January 1, 2015 $ (13.5 ) $ 5.3 $ (433.1 ) $ (138.5 ) $ (579.8 ) Recorded into AOCI 27.9 (1.7 ) 15.1 (483.8 ) (442.5 ) Reclassified out of AOCI (20.8 ) (1.5 ) 27.6 5.3 Net other comprehensive income (loss) 7.1 (3.2 ) 42.7 (483.8 ) (437.2 ) Balance at December 31, 2015 $ (6.4 ) $ 2.1 $ (390.4 ) $ (622.3 ) $ (1,017.0 ) DERIVATIVE MARKETABLE PENSION FOREIGN TOTAL Balance at January 1, 2014 $ (15.1 ) $ 1.7 $ (262.2 ) $ 284.3 $ 8.7 Recorded into AOCI 20.0 4.2 (185.8 ) (422.8 ) (584.4 ) Reclassified out of AOCI (18.4 ) (.6 ) 14.9 (4.1 ) Net other comprehensive income (loss) 1.6 3.6 (170.9 ) (422.8 ) (588.5 ) Balance at December 31, 2014 $ (13.5 ) $ 5.3 $ (433.1 ) $ (138.5 ) $ (579.8 ) DERIVATIVE MARKETABLE PENSION FOREIGN TOTAL Balance at January 1, 2013 $ (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 income (loss) 12.1 (4.9 ) 234.3 (73.3 ) 168.2 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 years ended December 31, 2015, 2014 and 2013 are as follows: AMOUNT RECLASSIFIED OUT OF AOCI AOCI COMPONENTS LINE ITEM IN THE CONSOLIDATED STATEMENTS OF INCOME 2015 2014 2013 Unrealized (gains) and losses on derivative contracts: Truck, Parts and Other Foreign-exchange contracts Net sales and revenues $ (.1 ) Cost of sales and revenues 3.4 $ .3 $ 1.0 Interest and other expense, net (4.1 ) (2.1 ) (.6 ) Financial Services Interest-rate contracts Interest and other borrowing expenses (28.5 ) (21.7 ) (36.0 ) Pre-tax expense reduction (29.3 ) (23.5 ) (35.6 ) Tax expense 8.5 5.1 10.8 After-tax expense reduction (20.8 ) (18.4 ) (24.8 ) Unrealized (gains) and losses on marketable debt securities: Marketable debt securities Investment income (2.1 ) (.9 ) 1.7 Tax expense (benefit) .6 .3 (.5 ) After-tax income (increase) decrease (1.5 ) (.6 ) 1.2 Pension plans: Truck, Parts and Other Actuarial loss Cost of sales and revenues 22.4 11.1 21.4 Selling, general and administrative 17.1 9.0 20.3 39.5 20.1 41.7 Prior service costs Cost of sales and revenues 1.0 1.0 .4 Selling, general and administrative .2 .2 .6 Research and development .3 1.2 1.2 1.3 Financial Services Actuarial loss Selling, general and administrative 1.7 .7 2.3 Pre-tax expense increase 42.4 22.0 45.3 Tax benefit (14.8 ) (7.1 ) (15.8 ) After-tax expense increase 27.6 14.9 29.5 Foreign currency translation: Truck, Parts and Other Interest and other expense, net (1.1 ) Financial Services Interest and other borrowing expenses (.9 ) Expense reduction (2.0 ) Total reclassifications out of AOCI $ 5.3 $ (4.1 ) $ 3.9 |
Derivative Financial Instrume39
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 ASSETS LIABILITIES ASSETS LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets $ 132.2 $ 82.7 Deferred taxes and other liabilities $ 46.7 $ 45.7 Foreign-exchange contracts: Truck, Parts and Other: Other current assets 3.9 1.2 Accounts payable, accrued expenses and other .2 1.9 Total $ 136.1 $ 46.9 $ 83.9 $ 47.6 Economic hedges: Foreign-exchange contracts: Truck, Parts and Other: Other current assets $ .9 $ 1.9 Accounts payable, accrued expenses and other $ .3 $ .9 Financial Services: Other assets .3 3.4 Deferred taxes and other liabilities 1.0 Total $ 1.2 $ 1.3 $ 5.3 $ .9 Gross amounts recognized in Balance Sheet $ 137.3 $ 48.2 $ 89.2 $ 48.5 Less amounts not offset in financial instruments: Truck, Parts and Other: Foreign-exchange contracts (.4 ) (.4 ) (.9 ) (.9 ) Financial Services: Interest-rate contracts (3.3 ) (3.3 ) (3.9 ) (3.9 ) Foreign-exchange contracts (.2 ) (.2 ) Pro-forma net amount $ 133.4 $ 44.3 $ 84.4 $ 43.7 |
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, 2015 2014 2013 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- Gain (loss) recognized in OCI: Truck, Parts and Other $ 4.9 $ 1.7 $ (1.2 ) Financial Services $ 33.8 $ 24.4 $ 54.4 Total $ 33.8 $ 4.9 $ 24.4 $ 1.7 $ 54.4 $ (1.2 ) Expense (income) reclassified out of AOCI into income was as follows: Year Ended December 31, 2015 2014 2013 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- Truck, Parts and Other: Net sales and revenues $ (.1 ) Cost of sales and revenues 3.4 $ .3 $ 1.0 Interest and other expense, net (4.1 ) (2.1 ) (.6 ) Financial Services: Interest and other borrowing expenses $ (28.5 ) $ (21.7 ) $ (36.0 ) Total $ (28.5 ) $ (.8 ) $ (21.7 ) $ (1.8 ) $ (36.0 ) $ .4 |
Economic Hedges | |
Gains/Losses of Derivative Financial Instruments | The (income) expense recognized in earnings related to economic hedges was as follows: Year Ended December 31, 2015 2014 2013 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- Truck, Parts and Other: Cost of sales and revenues $ (.7 ) $ (5.3 ) $ (1.3 ) Interest and other expense, net 3.0 3.8 .3 Financial Services: Interest and other borrowing expenses (7.6 ) 4.2 $ (1.5 ) (9.6 ) Selling, general and administrative (2.3 ) 5.2 Total $ (7.6 ) $ 7.9 $ (1.5 ) $ (10.6 ) |
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, 2015 2014 2013 Interest-rate swaps $ (.9 ) $ .1 $ .7 Term notes .2 (2.6 ) (5.1 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 505.4 $ 505.4 U.S. corporate securities 76.7 76.7 U.S. government and agency securities $ 15.1 .6 15.7 Non-U.S. corporate securities 587.0 587.0 Non-U.S. government securities 193.7 193.7 Other debt securities 69.6 69.6 Total marketable debt securities $ 15.1 $ 1,433.0 $ 1,448.1 Derivatives Cross currency swaps $ 130.5 $ 130.5 Interest-rate swaps 1.7 1.7 Foreign-exchange contracts 5.1 5.1 Total derivative assets $ 137.3 $ 137.3 Liabilities: Derivatives Cross currency swaps $ 37.2 $ 37.2 Interest-rate swaps 9.5 9.5 Foreign-exchange contracts 1.5 1.5 Total derivative liabilities $ 48.2 $ 48.2 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 .3 8.0 Non-U.S. corporate securities 532.0 532.0 Non-U.S. government securities 194.1 194.1 Other debt securities 93.0 93.0 Total marketable debt securities $ 7.7 $ 1,264.3 $ 1,272.0 Derivatives Cross currency swaps $ 81.7 $ 81.7 Interest-rate swaps 1.0 1.0 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 |
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, 2015 2014 CARRYING FAIR CARRYING FAIR Assets: Financial Services fixed rate loans $ 3,660.6 $ 3,729.0 $ 3,627.5 $ 3,683.3 Liabilities: Financial Services fixed rate debt 4,167.9 4,192.2 3,713.4 3,737.7 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. 2015 2014 2013 Risk-free interest rate 1.35 % 1.51 % .88 % Expected volatility 28 % 34 % 44 % Expected dividend yield 3.4 % 3.4 % 3.3 % Expected term 5 years 5 years 5 years Weighted average grant date fair value of options per share $ 10.98 $ 13.17 $ 13.78 |
Activity Under Company's Stock Plans | A summary of activity under the Company’s stock plans is presented below: 2015 2014 2013 Intrinsic value of options exercised $ 14.1 $ 20.9 $ 19.6 Cash received from stock option exercises 21.8 29.1 31.0 Tax benefit related to stock award exercises 3.5 4.4 3.9 Stock based compensation 14.6 16.2 14.0 Tax benefit related to stock based compensation 5.1 5.6 4.9 |
Stock Option Activity | The summary of options as of December 31, 2015 and changes during the year then ended are presented below: NUMBER PER SHARE REMAINING AGGREGATE Options outstanding at January 1 4,536,700 $ 44.25 Granted 569,500 62.46 Exercised (582,300 ) 37.50 Cancelled (102,300 ) 55.17 Options outstanding at December 31 4,421,600 $ 47.23 5.69 $ 17.5 Vested and expected to vest 4,325,600 $ 46.93 5.63 $ 17.5 Exercisable 2,590,700 $ 41.14 4.04 $ 17.5 * Weighted Average |
Nonvested Restricted Shares Activity | The summary of nonvested restricted shares as of December 31, 2015 and changes during the year then ended is presented below: NONVESTED SHARES NUMBER OF SHARES GRANT DATE Nonvested awards outstanding at January 1 185,700 $ 51.60 Granted 112,000 63.39 Vested (115,800 ) 51.70 Nonvested awards outstanding at December 31 181,900 $ 58.79 * Weighted Average |
Dilutive and Antidilutive Options | The dilutive and antidilutive options are shown separately in the table below: Year Ended December 31, 2015 2014 2013 Additional shares 906,100 1,120,500 932,000 Antidilutive options 1,180,400 673,700 873,800 |
Segment and Related Informati42
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Geographic Area Data | Geographic Area Data 2015 2014 2013 Net sales and revenues: United States $ 11,408.3 $ 10,106.3 $ 8,147.6 Europe 4,515.9 4,835.7 4,967.2 Other 3,190.9 4,055.0 4,009.0 $ 19,115.1 $ 18,997.0 $ 17,123.8 Property, plant and equipment, net: United States $ 1,140.5 $ 1,132.0 $ 1,183.1 The Netherlands 438.7 517.4 620.0 Other 597.2 663.9 710.2 $ 2,176.4 $ 2,313.3 $ 2,513.3 Equipment on operating leases, net: United States $ 1,287.9 $ 1,226.6 $ 1,153.8 Mexico 330.0 346.9 361.6 Germany 321.9 347.0 404.1 United Kingdom 321.3 342.2 414.9 Other 1,111.9 977.8 994.0 $ 3,373.0 $ 3,240.5 $ 3,328.4 |
Segment Reporting Information by Segment | Business Segment Data 2015 2014 2013 Net sales and revenues: Truck $ 15,568.6 $ 15,330.4 $ 13,627.7 Less intersegment (786.1 ) (736.4 ) (624.8 ) External customers 14,782.5 14,594.0 13,002.9 Parts 3,104.7 3,125.9 2,868.3 Less intersegment (44.6 ) (48.4 ) (46.1 ) External customers 3,060.1 3,077.5 2,822.2 Other 100.2 121.3 123.8 17,942.8 17,792.8 15,948.9 Financial Services 1,172.3 1,204.2 1,174.9 $ 19,115.1 $ 18,997.0 $ 17,123.8 Income before income taxes: Truck $ 1,440.3 $ 1,160.1 $ 936.7 Parts 555.6 496.7 416.0 Other (43.2 ) (31.9 ) (26.5 ) 1,952.7 1,624.9 1,326.2 Financial Services 362.6 370.4 340.2 Investment income 21.8 22.3 28.6 $ 2,337.1 $ 2,017.6 $ 1,695.0 Depreciation and amortization: Truck $ 399.8 $ 415.0 $ 352.9 Parts 6.2 5.9 5.3 Other 14.9 11.8 10.2 420.9 432.7 368.4 Financial Services 486.2 485.0 442.3 $ 907.1 $ 917.7 $ 810.7 Expenditures for long-lived assets: Truck $ 660.0 $ 504.9 $ 812.9 Parts 24.9 9.9 6.8 Other 17.7 12.1 20.8 702.6 526.9 840.5 Financial Services 1,044.4 935.3 931.2 $ 1,747.0 $ 1,462.2 $ 1,771.7 Segment assets: Truck $ 4,472.3 $ 4,871.1 $ 5,123.3 Parts 793.3 787.2 748.4 Other 211.6 106.1 298.5 Cash and marketable securities 3,378.0 2,937.1 2,925.2 8,855.2 8,701.5 9,095.4 Financial Services 12,254.6 11,917.3 11,630.1 $ 21,109.8 $ 20,618.8 $ 20,725.5 |
Significant Accounting Polici43
Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Abstract] | |||
Reportable segments | Segment | 3 | ||
Liquid investments maturity period | 90 days | ||
Goodwill | $ 105.6 | $ 128.6 | |
Goodwill, impairment charges | 0 | 0 | $ 0 |
Derivative assets | 137.3 | 89.2 | |
Trade Receivables | |||
Accounting Policies [Abstract] | |||
Trade and other receivables, net | 739.2 | 882.2 | |
Other Receivables | |||
Accounting Policies [Abstract] | |||
Trade and other receivables, net | $ 139.8 | 165 | |
Engines manufactured by PACCAR | |||
Accounting Policies [Abstract] | |||
Warranty period | 2 years | ||
Designated as Hedging Instrument | |||
Accounting Policies [Abstract] | |||
Derivative assets | $ 136.1 | 83.9 | |
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 | ||
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 | ||
Truck, Parts and Other | |||
Accounting Policies [Abstract] | |||
Trade and other receivables, net | $ 879 | $ 1,047.1 | |
Trade receivable days outstanding considered past due | 30 days | 30 days | 30 days |
Allowance for credit losses for Truck, Parts and Other | $ 1.3 | $ 1.9 | |
Net charge-offs | 0.3 | 0.2 | $ 0.2 |
Financial Services | |||
Accounting Policies [Abstract] | |||
Lease rental revenue | 728.5 | 741.6 | 712.1 |
Depreciation and other expenses | $ 583.7 | $ 588.5 | 571.7 |
Months contractual terms extended | 7 months | 5 months | |
Financial Services | Designated as Hedging Instrument | Interest-Rate Contracts | Other Assets | |||
Accounting Policies [Abstract] | |||
Derivative assets | $ 132.2 | $ 82.7 | |
Financial Services | Minimum | Loans And Leases | |||
Accounting Policies [Abstract] | |||
Receivable, collection period | 36 months | ||
Financial Services | Minimum | Loans Receivable | |||
Accounting Policies [Abstract] | |||
Origination cost, amortization period | 36 months | ||
Financial Services | Maximum | Loans And Leases | |||
Accounting Policies [Abstract] | |||
Receivable, collection period | 60 months | ||
Financial Services | Maximum | Loans Receivable | |||
Accounting Policies [Abstract] | |||
Origination cost, amortization period | 60 months | ||
Financial Services | Operating Lease | |||
Accounting Policies [Abstract] | |||
Lease rental revenue | $ 668.6 | 681.5 | 631.7 |
Depreciation and other expenses | $ 536.2 | $ 544 | $ 503.5 |
Marketable Debt Securities (Det
Marketable Debt Securities (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,445.3 | $ 1,264.8 |
Unrealized Gains | 3.9 | 7.6 |
Unrealized Losses | 1.1 | 0.4 |
Fair Value | 1,448.1 | 1,272 |
U.S. tax-exempt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 505 | 362.9 |
Unrealized Gains | 0.7 | 0.8 |
Unrealized Losses | 0.3 | 0.3 |
Fair Value | 505.4 | 363.4 |
U.S. corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 76.7 | 80.9 |
Unrealized Gains | 0.1 | 0.6 |
Unrealized Losses | 0.1 | |
Fair Value | 76.7 | 81.5 |
U.S. government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15.7 | 8 |
Unrealized Gains | 0.1 | |
Unrealized Losses | 0.1 | |
Fair Value | 15.7 | 8 |
Non-U.S. corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 585.6 | 528.1 |
Unrealized Gains | 1.8 | 3.9 |
Unrealized Losses | 0.4 | |
Fair Value | 587 | 532 |
Non-U.S. government securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 192.7 | 192.1 |
Unrealized Gains | 1.1 | 2 |
Unrealized Losses | 0.1 | |
Fair Value | 193.7 | 194.1 |
Other debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 69.6 | 92.8 |
Unrealized Gains | 0.1 | 0.3 |
Unrealized Losses | 0.1 | 0.1 |
Fair Value | $ 69.6 | $ 93 |
Investments in Marketable Deb45
Investments in Marketable Debt Securities - Additional Information (Detail) - Truck, Parts and Other - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized gains from sales of marketable securities | $ 2.6 | $ 1.2 | $ 2 |
Gross realized loss from sales of marketable securities | $ 0.8 | $ 0.1 | $ 0.7 |
Marketable Debt Securities Cont
Marketable Debt Securities Continuous Unrealized Losses (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months Fair Value | $ 579 | $ 249.6 |
Less than 12 Months Unrealized Losses | 1.1 | 0.4 |
12 Months or Greater Fair value | 0 | 0 |
12 Months or Greater Unrealized losses | $ 0 | $ 0 |
Contractual Maturities of Marke
Contractual Maturities of Marketable Debt Securities (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost Maturities: | ||
Within one year | $ 437.1 | |
One to five years | 1,008 | |
Six to ten years | 0.2 | |
Amortized Cost | 1,445.3 | $ 1,264.8 |
Fair Value Maturities: | ||
Within one year | 437.4 | |
One to five years | 1,010.5 | |
Six to ten years | 0.2 | |
Fair Value | $ 1,448.1 | $ 1,272 |
Inventories Table (Detail)
Inventories Table (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Finished products | $ 443.6 | $ 512.3 |
Work in process and raw materials | 528.9 | 587.7 |
Inventory, Gross, Total | 972.5 | 1,100 |
Less LIFO reserve | (176) | (174.3) |
Inventories, net | $ 796.5 | $ 925.7 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Truck, Parts and Other | ||
Inventory [Line Items] | ||
Percentage of inventories valued using LIFO method of accounting | 52.00% | 47.00% |
Finance and Other Receivables50
Finance and Other Receivables (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | $ 4,011.7 | $ 3,968.5 | |||
Direct financing leases | 2,719.5 | 2,752.8 | |||
Sales-type finance leases | 969.8 | 972.8 | |||
Dealer wholesale financing | 1,950.1 | 1,755.8 | |||
Operating lease receivables and other | 131.9 | 99.5 | |||
Unearned interest: Finance leases | (364.6) | (384.8) | |||
Finance and other receivables, net of deferred income | 9,418.4 | 9,164.6 | |||
Less allowance for losses | (114.8) | (122) | $ (129.3) | $ (130) | |
Finance and other receivables, net | 9,303.6 | 9,042.6 | |||
Loans And Leases | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Less allowance for losses | (99.2) | (105.5) | |||
Dealer | Wholesale | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Less allowance for losses | (7.3) | (9) | (10.4) | (11.8) | |
Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Less allowance for losses | [1] | $ (8.3) | $ (7.5) | $ (8) | $ (5.6) |
[1] | Operating lease and other trade receivables. |
Annual Minimum Payments Due on
Annual Minimum Payments Due on Finance Receivables (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 9,286.5 | $ 9,065.1 |
Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2,016 | 1,238.4 | |
2,017 | 1,049.7 | |
2,018 | 806.5 | |
2,019 | 544.3 | |
2,020 | 331.7 | |
Thereafter | 41.1 | |
Financing Receivables | 4,011.7 | |
Finance Leases Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2,016 | 1,083.3 | |
2,017 | 883.7 | |
2,018 | 672.3 | |
2,019 | 465.4 | |
2,020 | 261.9 | |
Thereafter | 112.9 | |
Financing Receivables | $ 3,479.5 |
Finance and Other Receivables -
Finance and Other Receivables - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable | Credit Concentration Risk | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of portfolio assets | 5.00% | ||
Financial Services | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans accounted for as troubled debt restructurings | $ 52.3 | $ 36 | |
Repossessed inventory | 14.6 | 19 | |
Proceeds from the sales of repossessed assets | 48 | 58.5 | $ 63.2 |
Financial Services | Finance Leases Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Estimated residual values included with finance leases | $ 209.8 | $ 204 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for losses | $ 12.4 | $ 15.4 | $ 12.9 | |
Financial Services | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 122 | 129.3 | 130 | |
Provision for losses | 12.4 | 15.4 | 12.9 | |
Charge-offs | (17.1) | (21.3) | (24.5) | |
Recoveries | 4 | 5.3 | 10.9 | |
Currency translation and other | (6.5) | (6.7) | ||
Ending Balance | 114.8 | 122 | 129.3 | |
Financial Services | Dealer | Wholesale | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 9 | 10.4 | 11.8 | |
Provision for losses | (0.8) | 0.3 | (0.9) | |
Charge-offs | (0.3) | (0.9) | (0.5) | |
Currency translation and other | (0.6) | (0.8) | ||
Ending Balance | 7.3 | 9 | 10.4 | |
Financial Services | Dealer | Retail | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 11.9 | 13.4 | 13.4 | |
Provision for losses | (1.4) | (1.4) | 0.2 | |
Currency translation and other | (0.2) | (0.1) | (0.2) | |
Ending Balance | 10.3 | 11.9 | 13.4 | |
Financial Services | Customer Retail | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 93.6 | 97.5 | 99.2 | |
Provision for losses | 11.6 | 14.8 | 9.8 | |
Charge-offs | (13.6) | (18.2) | (21.2) | |
Recoveries | 3.5 | 4.6 | 9.9 | |
Currency translation and other | (6.2) | (5.1) | (0.2) | |
Ending Balance | 88.9 | 93.6 | 97.5 | |
Financial Services | Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | [1] | 7.5 | 8 | 5.6 |
Provision for losses | [1] | 3 | 1.7 | 3.8 |
Charge-offs | [1] | (3.2) | (2.2) | (2.8) |
Recoveries | [1] | 0.5 | 0.7 | 1 |
Currency translation and other | [1] | 0.5 | (0.7) | 0.4 |
Ending Balance | [1] | $ 8.3 | $ 7.5 | $ 8 |
[1] | Operating lease and other trade receivables. |
Finance Receivables Summary by
Finance Receivables Summary by those Evaluated Collectively and Individually (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | $ 69 | $ 48.6 |
Allowance for impaired finance receivables determined individually | 6.8 | 5.1 |
Recorded investment for finance receivables evaluated collectively | 9,217.5 | 9,016.5 |
Allowance for finance receivables determined collectively | 99.7 | 109.4 |
Dealer | Wholesale | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | 5 | 4.9 |
Allowance for impaired finance receivables determined individually | 0.3 | 0.5 |
Recorded investment for finance receivables evaluated collectively | 1,945.1 | 1,750.9 |
Allowance for finance receivables determined collectively | 7 | 8.5 |
Dealer | Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for finance receivables evaluated collectively | 1,561.3 | 1,606.5 |
Allowance for finance receivables determined collectively | 10.3 | 11.9 |
Customer Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | 64 | 43.7 |
Allowance for impaired finance receivables determined individually | 6.5 | 4.6 |
Recorded investment for finance receivables evaluated collectively | 5,711.1 | 5,659.1 |
Allowance for finance receivables determined collectively | $ 82.4 | $ 89 |
Recorded Investment for Finance
Recorded Investment for Finance Receivables that are on Non-accrual Status (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | $ 65.7 | $ 48.2 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | 5 | 4.9 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | 50.7 | 34.4 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | $ 10 | $ 8.9 |
Summary of Impaired Loans (Deta
Summary of Impaired Loans (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | $ 29.1 | $ 15.8 |
Associated allowance | (4.3) | (2.5) |
Net carrying amount of impaired loans with specific reserve | 24.8 | 13.3 |
Impaired loans with no specific reserve | 6.8 | 16.7 |
Net carrying amount of impaired loans | 31.6 | 30 |
Average recorded investment | 33.5 | 34.1 |
Dealer | Wholesale | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 5 | 0.5 |
Associated allowance | (0.3) | (0.5) |
Net carrying amount of impaired loans with specific reserve | 4.7 | |
Impaired loans with no specific reserve | 4.4 | |
Net carrying amount of impaired loans | 4.7 | 4.4 |
Average recorded investment | 4.4 | 8.8 |
Customer Retail | Fleet | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 21.7 | 12.7 |
Associated allowance | (3.5) | (1.5) |
Net carrying amount of impaired loans with specific reserve | 18.2 | 11.2 |
Impaired loans with no specific reserve | 6.5 | 12.3 |
Net carrying amount of impaired loans | 24.7 | 23.5 |
Average recorded investment | 26.6 | 22.5 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 2.4 | 2.6 |
Associated allowance | (0.5) | (0.5) |
Net carrying amount of impaired loans with specific reserve | 1.9 | 2.1 |
Impaired loans with no specific reserve | 0.3 | |
Net carrying amount of impaired loans | 2.2 | 2.1 |
Average recorded investment | $ 2.5 | $ 2.8 |
Summary of Impaired Loans (Cash
Summary of Impaired Loans (Cash Basis Method) (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income recognized: | |||
Interest income recognized on a cash basis | $ 1.8 | $ 1.7 | $ 3.9 |
Dealer | Wholesale | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | 0.1 | 0.1 | |
Customer Retail | Fleet | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | 1.4 | 1.2 | 2.9 |
Customer Retail | Owner/Operator | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | $ 0.4 | $ 0.4 | $ 0.9 |
Finance Receivables by Credit Q
Finance Receivables by Credit Quality Indicator and Portfolio Class (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | $ 9,286.5 | $ 9,065.1 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 9,160.9 | 8,970.7 |
Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 56.6 | 45.8 |
At-risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 69 | 48.6 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,950.1 | 1,755.8 |
Dealer | Wholesale | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,922.4 | 1,739.5 |
Dealer | Wholesale | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 22.7 | 11.4 |
Dealer | Wholesale | At-risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 5 | 4.9 |
Dealer | Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,561.3 | 1,606.5 |
Dealer | Retail | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,561.3 | 1,606.4 |
Dealer | Retail | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 0.1 | |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 4,761.4 | 4,487.5 |
Customer Retail | Fleet | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 4,680.6 | 4,430.9 |
Customer Retail | Fleet | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 27 | 21.8 |
Customer Retail | Fleet | At-risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 53.8 | 34.8 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,013.7 | 1,215.3 |
Customer Retail | Owner/Operator | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 996.6 | 1,193.9 |
Customer Retail | Owner/Operator | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 6.9 | 12.5 |
Customer Retail | Owner/Operator | At-risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | $ 10.2 | $ 8.9 |
Financing Receivables by Aging
Financing Receivables by Aging Category (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | $ 9,247.4 | $ 9,023.8 |
Financing Receivables | 9,286.5 | 9,065.1 |
31 - 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 13.7 | 18.1 |
Greater than 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 25.4 | 23.2 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 1,949.8 | 1,752.9 |
Financing Receivables | 1,950.1 | 1,755.8 |
Dealer | Wholesale | 31 - 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 0.6 | |
Dealer | Wholesale | Greater than 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 0.3 | 2.3 |
Dealer | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 1,561.3 | 1,606.5 |
Financing Receivables | 1,561.3 | 1,606.5 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 4,733.6 | 4,464.4 |
Financing Receivables | 4,761.4 | 4,487.5 |
Customer Retail | Fleet | 31 - 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 8.3 | 10.6 |
Customer Retail | Fleet | Greater than 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 19.5 | 12.5 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 1,002.7 | 1,200 |
Financing Receivables | 1,013.7 | 1,215.3 |
Customer Retail | Owner/Operator | 31 - 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 5.4 | 6.9 |
Customer Retail | Owner/Operator | Greater than 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | $ 5.6 | $ 8.4 |
Pre- and Post-Modification Reco
Pre- and Post-Modification Recorded Investment Balances for Finance Receivables Modified by Portfolio Class (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | $ 44.8 | $ 26.7 |
Post-Modification Recorded Investment | 44.4 | 26.4 |
Customer Retail | Fleet | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 38.3 | 24.4 |
Post-Modification Recorded Investment | 37.9 | 24.1 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 6.5 | 2.3 |
Post-Modification Recorded Investment | $ 6.5 | $ 2.3 |
TDRs Modified During Previous T
TDRs Modified During Previous Twelve Months that Subsequently Defaulted (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | ||
Recorded Investment, subsequently defaulted | $ 7.1 | $ 0.9 |
Customer Retail | Fleet | ||
Financing Receivable, Modifications [Line Items] | ||
Recorded Investment, subsequently defaulted | 6.7 | 0.7 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Modifications [Line Items] | ||
Recorded Investment, subsequently defaulted | $ 0.4 | $ 0.2 |
Equipment on Operating Leases f
Equipment on Operating Leases for Truck and Other Segment and for Financial Services Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Property Subject to or Available for Operating Lease [Line Items] | |||
Total | $ 3,373 | $ 3,240.5 | $ 3,328.4 |
Truck, Parts and Other | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Equipment on operating leases | 1,282.6 | 1,222.9 | |
Less allowance for depreciation | (290.4) | (288.4) | |
Total | 992.2 | 934.5 | |
Financial Services | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Equipment on operating leases | 3,335.5 | 3,269 | |
Less allowance for depreciation | (954.7) | (963) | |
Total | $ 2,380.8 | $ 2,306 |
Equipment on Operating Leases -
Equipment on Operating Leases - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Financial Services | |
Property Subject to or Available for Operating Lease [Line Items] | |
Minimum lease payments receivable for operating leases, in 2016 | $ 542.1 |
Minimum lease payments receivable for operating leases, in 2017 | 415.4 |
Minimum lease payments receivable for operating leases, in 2018 | 250.4 |
Minimum lease payments receivable for operating leases, in 2019 | 108 |
Minimum lease payments receivable for operating leases, in 2020 | 32.4 |
Minimum lease payments receivable for operating leases, thereafter | 6 |
Truck, Parts and Other | |
Property Subject to or Available for Operating Lease [Line Items] | |
Annual amortization of deferred lease revenues, in 2016 | 134.9 |
Annual amortization of deferred lease revenues, in 2017 | 100.5 |
Annual amortization of deferred lease revenues, in 2018 | 64.3 |
Annual amortization of deferred lease revenues, in 2019 | 41.3 |
Annual amortization of deferred lease revenues, in 2020 | 14.7 |
Annual amortization of deferred lease revenues, thereafter | 0.3 |
Annual maturities of the residual value guarantees, in 2016 | 284 |
Annual maturities of the residual value guarantees, in 2017 | 228 |
Annual maturities of the residual value guarantees, in 2018 | 97.6 |
Annual maturities of the residual value guarantees, in 2019 | 49.7 |
Annual maturities of the residual value guarantees, in 2020 | 26.1 |
Annual maturities of the residual value guarantees, thereafter | $ 6 |
Residual Value Obligation and D
Residual Value Obligation and Deferred Lease Revenue (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Residual value guarantees | $ 691.4 | $ 629.1 |
Deferred lease revenues | 356 | 341.8 |
Residual value guarantees and deferred revenues, Total | $ 1,047.4 | $ 970.9 |
Property, Plant and Equipment65
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net | $ 2,176.4 | $ 2,313.3 | $ 2,513.3 |
Truck, Parts and Other | |||
Property, Plant and Equipment [Line Items] | |||
Land | 222.1 | 239 | |
Buildings and improvements | 1,061.7 | 1,082.8 | |
Machinery, equipment and production tooling | 3,237.1 | 3,316.7 | |
Construction in progress | 248.4 | 175.8 | |
Property, Plant and Equipment, Gross, Total | 4,769.3 | 4,814.3 | |
Less allowance for depreciation | (2,592.9) | (2,501) | |
Property, plant and equipment, net | $ 2,176.4 | $ 2,313.3 | |
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 Exp66
Accounts Payable, Accrued Expenses and Other (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accounts payable | $ 929.7 | $ 1,167.6 |
Product support liabilities | 384.1 | 355.3 |
Accrued expenses | 231.4 | 213.5 |
Accrued capital expenditures | 85.7 | 63.9 |
Salaries and wages | 197.2 | 224.9 |
Other | 243.6 | 272 |
Accounts payable, accrued expenses and other | $ 2,071.7 | $ 2,297.2 |
Changes in Product Support Liab
Changes in Product Support Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Warranty reserves | |||
Beginning balance | $ 310.8 | $ 218.7 | $ 208.8 |
Cost accruals | 294.8 | 302.6 | 220.4 |
Payments | (228.8) | (210.5) | (211.5) |
Change in estimates for pre-existing warranties | (21.3) | 16.1 | (1.2) |
Currency translation | (9.3) | (16.1) | 2.2 |
Ending balance | 346.2 | 310.8 | 218.7 |
Deferred revenues on extended warranties and R&M contracts | |||
Beginning balance | 462 | 411.8 | 331.9 |
Deferred revenues | 333 | 323.7 | 260.4 |
Revenues recognized | (248.4) | (246.1) | (188.3) |
Currency translation | (21.8) | (27.4) | 7.8 |
Ending balance | $ 524.8 | $ 462 | $ 411.8 |
Product Support Liabilities (De
Product Support Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | $ 346.2 | $ 310.8 | $ 218.7 | $ 208.8 |
Deferred Revenues | 524.8 | 462 | $ 411.8 | $ 331.9 |
Truck, Parts and Other | Accounts payable, accrued expenses and other | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 241.6 | 229.1 | ||
Deferred Revenues | 142.5 | 126.2 | ||
Truck, Parts and Other | Other liabilities | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 104.6 | 81.7 | ||
Deferred Revenues | 368.2 | 324.5 | ||
Financial Services | Deferred Taxes And Other Liabilities | ||||
Product Liability Contingency [Line Items] | ||||
Deferred Revenues | $ 14.1 | $ 11.3 |
Financial Services Borrowings (
Financial Services Borrowings (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Effective Rate | 1.20% | 1.30% |
Commercial paper | $ 2,620.4 | $ 2,506 |
Bank loans | 176.1 | 135.9 |
Commercial paper and bank loans | 2,796.5 | 2,641.9 |
Term notes | 5,795 | 5,588.7 |
Commercial Paper, Bank Loans, and Term Debt at Carrying Value, Total | $ 8,591.5 | $ 8,230.6 |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Effective Rate | 4.80% | 5.00% |
Term Loan | ||
Debt Instrument [Line Items] | ||
Effective Rate | 1.40% | 1.50% |
Commercial Papers | ||
Debt Instrument [Line Items] | ||
Effective Rate | 0.60% | 0.80% |
Borrowings and Credit Arrange70
Borrowings and Credit Arrangements - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2011MXN | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015MXN | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | |
Debt Disclosure [Line Items] | |||||||
Interest paid on borrowings | $ 101,300,000 | $ 136,300,000 | $ 149,300,000 | ||||
Line of credit, maximum capacity | $ 3,435,000,000 | ||||||
Line of credit, unused borrowing capacity | 3,256,400,000 | ||||||
Syndicated loan facility | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum capacity | 3,000,000,000 | ||||||
PACCAR's U.S. finance subsidiary | Medium-term Notes | |||||||
Debt Disclosure [Line Items] | |||||||
Debt outstanding | 4,400,000,000 | ||||||
Registration expiration | 2018-11 | ||||||
PACCAR's European finance subsidiary | Medium-term Notes | |||||||
Debt Disclosure [Line Items] | |||||||
Debt, unused borrowing capacity | € | € 269,000,000 | ||||||
Debt, borrowing capacity | € | € 1,500,000,000 | ||||||
Debt, renewal period | Annually through the filing of new listing particulars | ||||||
PACCAR's Mexico finance subsidiary | Commercial Papers | |||||||
Debt Disclosure [Line Items] | |||||||
Maximum limit of borrowing capacity | MXN | MXN 5,000,000,000 | ||||||
PACCAR's Mexico finance subsidiary | Medium-term Notes | |||||||
Debt Disclosure [Line Items] | |||||||
Registration expiration | 2016-04 | ||||||
Debt, unused borrowing capacity | MXN | MXN 8,035,000,000 | ||||||
PACCAR's Mexico finance subsidiary | Medium-term Notes | Commercial Papers | |||||||
Debt Disclosure [Line Items] | |||||||
Debt, borrowing capacity | MXN | MXN 10,000,000,000 | ||||||
Financial Services | |||||||
Debt Disclosure [Line Items] | |||||||
Commercial paper and term notes | 8,094,700,000 | 8,415,400,000 | |||||
Fair value hedges and unamortized discounts, net | $ (1,100,000) | (1,000,000) | |||||
Truck, Parts and Other | |||||||
Debt Disclosure [Line Items] | |||||||
Capitalized interest | $ 1,300,000 | $ 10,300,000 | |||||
Maximum | PACCAR's Mexico finance subsidiary | Commercial Papers | |||||||
Debt Disclosure [Line Items] | |||||||
Commercial paper expiration period | 1 year | ||||||
Expires in June 2016 | Syndicated loan facility | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum capacity | 1,000,000,000 | ||||||
Line of credit, expiry date | 2016-06 | ||||||
Expires in June 2019 | Syndicated loan facility | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum capacity | 1,000,000,000 | ||||||
Line of credit, expiry date | 2019-06 | ||||||
Expires in June 2020 | Syndicated loan facility | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum capacity | $ 1,000,000,000 | ||||||
Line of credit, expiry date | 2020-06 |
Annual Maturities of Financial
Annual Maturities of Financial Services Borrowings (Detail) - Financial Services $ in Millions | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 4,236.6 |
2,017 | 2,250.2 |
2,018 | 1,402.7 |
2,019 | 611 |
2,020 | 92.1 |
Debt, Long-term and Short-term, Combined Amount, Total | 8,592.6 |
Commercial Papers | |
Debt Instrument [Line Items] | |
2,016 | 2,621.2 |
Debt, Long-term and Short-term, Combined Amount, Total | 2,621.2 |
Notes Payable to Banks | |
Debt Instrument [Line Items] | |
2,016 | 39.5 |
2,017 | 20.3 |
2,018 | 46.5 |
2,019 | 32 |
2,020 | 37.8 |
Debt, Long-term and Short-term, Combined Amount, Total | 176.1 |
Medium-term Notes | |
Debt Instrument [Line Items] | |
2,016 | 1,575.9 |
2,017 | 2,229.9 |
2,018 | 1,356.2 |
2,019 | 579 |
2,020 | 54.3 |
Debt, Long-term and Short-term, Combined Amount, Total | $ 5,795.3 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Minimum lease payments for operating leases, in 2016 | $ 23.2 | ||
Minimum lease payments for operating leases, in 2017 | 11.3 | ||
Minimum lease payments for operating leases, in 2018 | 7.6 | ||
Minimum lease payments for operating leases, in 2019 | 2.6 | ||
Minimum lease payments for operating leases, in 2020 | 1.3 | ||
Minimum lease payments for operating leases, thereafter | 1.4 | ||
Rental expenses | $ 30.5 | $ 34.5 | $ 34.1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Environmental activities expenditures | $ 2 | $ 1.2 | $ 2.3 |
Standby letters of credit | 16.7 | ||
Outstanding commitments to fund new loan and lease transactions | $ 634.7 | ||
Funding commitments for loans and leases expiration period | 90 days | ||
Other commitments due in 2016 | $ 219.9 | ||
Other commitments due in 2017 | 61.1 | ||
Other commitments due in 2018 | $ 4 | ||
Other commitments due in 2019 | |||
Other commitments due in 2020 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefits Disclosure [Line Items] | |||
Severance Costs | $ 3.3 | $ 1.8 | $ 3.5 |
Defined Benefit Pension Plans | |||
Employee Benefits Disclosure [Line Items] | |||
Accumulated unrecognized actuarial gains and losses | 10.00% | ||
Contribution to pension plans | $ 62.9 | 81.1 | |
Expected pension contributions minimum funding requirements | 18.4 | ||
Annual benefits expected to be paid year one | 78.9 | ||
Annual benefits expected to be paid year two | 81.3 | ||
Annual benefits expected to be paid year three | 86.7 | ||
Annual benefits expected to be paid year four | 90.6 | ||
Annual benefits expected to be paid year five | 97.3 | ||
Annual benefits expected to be paid for the five years thereafter | 571.5 | ||
Retirement plan, total lump-sum distribution | 48.5 | ||
Unrecognized actuarial loss amount in accumulated other comprehensive loss expected to be amortized next year | 26.3 | ||
Unrecognized prior service cost amount in accumulated other comprehensive loss expected to be amortized next year | 1.2 | ||
Accumulated benefit obligation for all pension plans of the Company | $ 2,028.2 | $ 2,113.7 | |
Metal and Electrical Engineering Industry Pension Fund | |||
Employee Benefits Disclosure [Line Items] | |||
Actual coverage ratio percentage | 97.70% | ||
Western Metal Industry Pension Plan | |||
Employee Benefits Disclosure [Line Items] | |||
Contributions by the Company | 12.00% | 12.00% | |
Defined Contribution Plans | |||
Employee Benefits Disclosure [Line Items] | |||
Percentage match for base wages | 5.00% | 5.00% | 5.00% |
Defined contribution benefit plans expense | $ 36.1 | $ 36.3 | $ 34 |
Minimum | Defined Benefit Pension Plans | |||
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% | ||
Maximum | Defined Benefit Pension Plans | |||
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 | Other Plans | |||
Employee Benefits Disclosure [Line Items] | |||
Contributions by the Company | 5.00% |
Allocation of Plan Assets by In
Allocation of Plan Assets by Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 2,219 | $ 2,309.4 | $ 2,108.4 |
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 | $ 1,268 | $ 1,357.7 | |
Equity Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 593.8 | 666.4 | |
Equity Funds | Global | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 674.2 | $ 691.3 | |
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 | $ 885.3 | $ 895.1 | |
Fixed Income Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 631.6 | 608.6 | |
Fixed Income Funds | Non U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 253.7 | 286.5 | |
Cash and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 65.7 | 56.6 | |
Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 291.6 | 277.1 | |
Level 1 | Fixed Income Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 283.4 | 269.4 | |
Level 1 | Fixed Income Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 283.4 | 269.4 | |
Level 1 | Cash and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 8.2 | 7.7 | |
Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,927.4 | 2,032.3 | |
Level 2 | Equity Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,268 | 1,357.7 | |
Level 2 | Equity Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 593.8 | 666.4 | |
Level 2 | Equity Funds | Global | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 674.2 | 691.3 | |
Level 2 | Fixed Income Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 601.9 | 625.7 | |
Level 2 | Fixed Income Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 348.2 | 339.2 | |
Level 2 | Fixed Income Funds | Non U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 253.7 | 286.5 | |
Level 2 | Cash and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 57.5 | $ 48.9 |
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, 2015 | Dec. 31, 2014 | |
Weighted average assumptions: | ||
Discount rate | 4.20% | 3.80% |
Rate of increase in future compensation levels | 3.90% | 3.80% |
Assumed long-term rate of return on plan assets | 6.50% | 6.50% |
Components of Change in Project
Components of Change in Projected Benefit Obligation and Change in Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in projected benefit obligation: | |||
Benefit obligation, beginning balance | $ 2,417.4 | $ 1,961.6 | |
Service cost | 91.3 | 67.3 | $ 73.5 |
Interest cost | 92.2 | 91.8 | 81 |
Benefits paid | (121.3) | (72.5) | |
Actuarial (gain) loss | (141.6) | 412.8 | |
Currency translation and other | (35.6) | (47.6) | |
Participant contributions | 3.6 | 4 | |
Projected benefit obligation, ending balance | 2,306 | 2,417.4 | 1,961.6 |
Change in plan assets: | |||
Fair value of plan assets, beginning balance | 2,309.4 | 2,108.4 | |
Employer contributions | 62.9 | 81.1 | |
Actual return on plan assets | 0.3 | 235.8 | |
Benefits paid | (121.3) | (72.5) | |
Currency translation and other | (35.9) | (47.4) | |
Participant contributions | 3.6 | 4 | |
Fair value of plan assets, ending balance | 2,219 | 2,309.4 | $ 2,108.4 |
Funded status, ending balance | (87) | (108) | |
Amounts recorded on balance sheet | |||
Other noncurrent assets | 27.2 | 15 | |
Other liabilities | 114.2 | 123 | |
Accumulated other comprehensive loss: | |||
Actuarial loss | 386.3 | 428.9 | |
Prior service cost | 3.9 | 3.9 | |
Net initial transition amount | $ 0.2 | $ 0.3 |
Information for All Plans with
Information for All Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 217.9 | $ 224.2 |
Accumulated benefit obligation | 207.7 | 212.1 |
Fair value of plan assets | $ 128.8 | $ 139.1 |
Components of Pension Expense (
Components of Pension Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 91.3 | $ 67.3 | $ 73.5 |
Interest on projected benefit obligation | 92.2 | 91.8 | 81 |
Expected return on assets | (140.8) | (128) | (119.4) |
Amortization of prior service costs | 1.3 | 1.2 | 1.3 |
Recognized actuarial loss | 41.1 | 20.8 | 44 |
Curtailment gain | (0.1) | (0.3) | |
Net pension expense | $ 85 | $ 53.1 | $ 80.1 |
Multi-employer Plans (Detail)
Multi-employer Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
COMPANY CONTRIBUTIONS | $ 26 | $ 30.1 | $ 26.9 |
Metal and Electrical Engineering Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
PENSION PLAN NUMBER | 135,668 | ||
COMPANY CONTRIBUTIONS | $ 23 | 27.1 | 24.5 |
Western Metal Industry Pension Plan | |||
Multiemployer Plans [Line Items] | |||
EIN | 916,033,499 | ||
PENSION PLAN NUMBER | 1 | ||
COMPANY CONTRIBUTIONS | $ 2.1 | 2 | 1.5 |
Other Plans | |||
Multiemployer Plans [Line Items] | |||
COMPANY CONTRIBUTIONS | $ 0.9 | $ 1 | $ 0.9 |
Components of Income Before Inc
Components of Income Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 1,581.6 | $ 1,267.3 | $ 827 |
Foreign | 755.5 | 750.3 | 868 |
Income before income taxes | $ 2,337.1 | $ 2,017.6 | $ 1,695 |
Components of Provision for Inc
Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision: | |||
Federal | $ 521.8 | $ 482.4 | $ 191.4 |
State | 61.1 | 59 | 20.9 |
Foreign | 205.4 | 215.4 | 214.1 |
Current Income Tax Expense (Benefit), Total | 788.3 | 756.8 | 426.4 |
Deferred (benefit) provision: | |||
Federal | (57.8) | (88.3) | 68.8 |
State | 5.3 | 0.3 | 18.4 |
Foreign | (2.7) | (10) | 10.1 |
Deferred taxes | (55.2) | (98) | 97.3 |
Income taxes | $ 733.1 | $ 658.8 | $ 523.7 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ||||
Tax benefits recognized for net operating loss carryforwards | $ 0.6 | $ 16 | $ 4.5 | |
Investments reinvested outside the country of domicile | 4,100 | |||
Estimated deferred tax liability | 300 | |||
Foreign earnings included in domestic taxable income | 249.7 | 249 | 241.7 | |
Foreign earnings included in domestic taxable income, domestic taxes | 12.2 | 18.6 | 19.5 | |
Net operating loss carryforwards | 397 | |||
Deferred tax asset related to operating loss carryforwards | 63.6 | 67.2 | ||
Valuation allowance | $ 32.9 | 30.3 | ||
Carryforward description | The carryforward periods range from five years to indefinite, subject to certain limitations under applicable laws. | |||
Cash paid for income taxes | $ 879.7 | 689.9 | 434 | |
Unrecognized tax benefits | 19.1 | 12 | 13.1 | $ 23.4 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 9.9 | 1.1 | 1.5 | |
Income related to interest | 1.9 | 0.8 | 1.1 | |
Accrued interest expense and penalties | 2.8 | $ 4.7 | $ 5.5 | |
Settlement with Taxing Authority | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits, resulting from intercompany transactions | $ 7 | |||
Other Major Jurisdictions | Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Tax year remain subject to examination | 2,005 | |||
Other Major Jurisdictions | Latest Tax Year | ||||
Income Taxes [Line Items] | ||||
Tax year remain subject to examination | 2,015 | |||
Net Operating Loss Carryforwards | ||||
Income Taxes [Line Items] | ||||
Deferred tax asset related to operating loss carryforwards | $ 62.7 | |||
Valuation allowance | $ 30.7 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards periods | 5 years | |||
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] | ||||
Net operating loss carryforwards | $ 186.3 | |||
United States | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 210.7 |
Reconciliation of Statutory U.S
Reconciliation of Statutory U.S. Federal Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State | 2.10% | 2.00% | 1.30% |
Federal domestic production deduction | (1.80%) | (1.80%) | (0.90%) |
Tax on foreign earnings | (2.70%) | (1.60%) | (3.80%) |
Other, net | (1.20%) | (0.90%) | (0.70%) |
Effective income tax rate | 31.40% | 32.70% | 30.90% |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences Representing Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Accrued expenses | $ 240.7 | $ 215.9 |
Net operating loss and tax credit carryforwards | 63.6 | 67.2 |
Postretirement benefit plans | 44.9 | 43.3 |
Allowance for losses on receivables | 41.9 | 43 |
Other | 112.5 | 112.1 |
Deferred Tax Assets, Gross, Total | 503.6 | 481.5 |
Valuation allowance | (32.9) | (30.3) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 470.7 | 451.2 |
Liabilities: | ||
Financial Services leasing depreciation | (810.4) | (817.2) |
Depreciation and amortization | (277.9) | (289.2) |
Other | (29.2) | (33.5) |
Deferred Tax Liability, Total | (1,117.5) | (1,139.9) |
Net deferred tax liability | $ (646.8) | $ (688.7) |
Balance Sheet Classification of
Balance Sheet Classification of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Liabilities | $ (646.8) | $ (688.7) |
Truck, Parts and Other | Other current assets | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets Net | 134.8 | |
Truck, Parts and Other | Other Noncurrent Assets | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets Net | 135.7 | 16 |
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) | |
Truck, Parts and Other | Other liabilities | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Liabilities | (25) | (87.2) |
Financial Services | Other Assets | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets Net | 44.9 | 75 |
Financial Services | Deferred Taxes And Other Liabilities | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Liabilities | $ (802.4) | $ (826.4) |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | $ 12 | $ 13.1 | $ 23.4 |
Additions for tax positions related to the current year | 10.3 | 0.9 | 1 |
Additions for tax positions related to prior years | 0.1 | 0.3 | |
Reductions for tax positions related to prior years | (2) | (0.9) | (0.7) |
Reductions related to settlements | (9.7) | ||
Lapse of statute of limitations | (1.2) | (1.2) | (1.2) |
Balance at the end of the year | $ 19.1 | $ 12 | $ 13.1 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (579.8) | $ 8.7 | $ (159.5) |
Recorded into AOCI | (442.5) | (584.4) | 164.3 |
Reclassified out of AOCI | 5.3 | (4.1) | 3.9 |
Net other comprehensive (loss) income | (437.2) | (588.5) | 168.2 |
Ending balance | (1,017) | (579.8) | 8.7 |
Derivative Contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (13.5) | (15.1) | (27.2) |
Recorded into AOCI | 27.9 | 20 | 36.9 |
Reclassified out of AOCI | (20.8) | (18.4) | (24.8) |
Net other comprehensive (loss) income | 7.1 | 1.6 | 12.1 |
Ending balance | (6.4) | (13.5) | (15.1) |
Marketable Debt Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 5.3 | 1.7 | 6.6 |
Recorded into AOCI | (1.7) | 4.2 | (6.1) |
Reclassified out of AOCI | (1.5) | (0.6) | 1.2 |
Net other comprehensive (loss) income | (3.2) | 3.6 | (4.9) |
Ending balance | 2.1 | 5.3 | 1.7 |
Pension Plan | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (433.1) | (262.2) | (496.5) |
Recorded into AOCI | 15.1 | (185.8) | 204.8 |
Reclassified out of AOCI | 27.6 | 14.9 | 29.5 |
Net other comprehensive (loss) income | 42.7 | (170.9) | 234.3 |
Ending balance | (390.4) | (433.1) | (262.2) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (138.5) | 284.3 | 357.6 |
Recorded into AOCI | (483.8) | (422.8) | (71.3) |
Reclassified out of AOCI | (2) | ||
Net other comprehensive (loss) income | (483.8) | (422.8) | (73.3) |
Ending balance | $ (622.3) | $ (138.5) | $ 284.3 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized (gains) and losses on derivative contracts, pre-tax | $ (29.3) | $ (23.5) | $ (35.6) |
Unrealized (gains) and losses on derivative contracts, tax | 8.5 | 5.1 | 10.8 |
Unrealized (gains) and losses on derivative contracts, after-tax | (20.8) | (18.4) | (24.8) |
Unrealized (gains) and losses on marketable debt securities, pre-tax | (2.1) | (0.9) | 1.7 |
Unrealized (gains) and losses on marketable debt securities, tax | 0.6 | 0.3 | (0.5) |
Unrealized (gains) and losses on marketable debt securities, after tax | (1.5) | (0.6) | 1.2 |
Pension plans, pre-tax | 42.4 | 22 | 45.3 |
Pension plans, tax | (14.8) | (7.1) | (15.8) |
Pension plans, after tax | 27.6 | 14.9 | 29.5 |
Foreign currency translation, after tax | (2) | ||
Total reclassifications out of AOCI | 5.3 | (4.1) | 3.9 |
Truck, Parts and Other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension plans, Actuarial loss, pre- tax | 39.5 | 20.1 | 41.7 |
Pension plans, Prior service costs, pre-tax | 1.2 | 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 | 22.4 | 11.1 | 21.4 |
Pension plans, Prior service costs, pre-tax | 1 | 1 | 0.4 |
Truck, Parts and Other | Interest and other expense, net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation, after tax | (1.1) | ||
Truck, Parts and Other | Selling, general and administrative | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension plans, Actuarial loss, pre- tax | 17.1 | 9 | 20.3 |
Pension plans, Prior service costs, pre-tax | 0.2 | 0.2 | 0.6 |
Truck, Parts and Other | Research and development | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension plans, Prior service costs, pre-tax | 0.3 | ||
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 | 3.4 | 0.3 | 1 |
Truck, Parts and Other | Foreign-exchange contracts | Interest and other expense, net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized (gains) and losses on derivative contracts, pre-tax | (4.1) | (2.1) | (0.6) |
Truck, Parts and Other | Foreign-exchange contracts | Net sales and revenues | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized (gains) and losses on derivative contracts, pre-tax | (0.1) | ||
Financial Services | Interest and other borrowing expenses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation, after tax | (0.9) | ||
Financial Services | Selling, general and administrative | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension plans, Actuarial loss, pre- tax | 1.7 | 0.7 | 2.3 |
Financial Services | Interest-Rate Contracts | Interest and other borrowing expenses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized (gains) and losses on derivative contracts, pre-tax | $ (28.5) | $ (21.7) | $ (36) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - TREASURY STOCK, AT COST: - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||
Treasury stock, shares retired | 4,500 | ||
Purchases, shares | 3,850 | 730 |
Derivative Financial Instrume91
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Maximum length of future cash flow hedges | 5 years 5 months 8 days | ||
Recognized gain on the ineffective portion of cash flow hedges | $ 0 | $ 0 | $ 0.1 |
Accumulated net loss on derivative contracts included in accumulated other comprehensive loss expected to be recognized in the Consolidated Statements of Comprehensive Income in the following 12 months, net of tax | (6) | ||
Gains or losses reclassified out of AOCI into net income based on the probability that the original forecasted transaction would not occur | 0 | $ 0 | $ 0 |
Interest-Rate Contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount of outstanding contracts | 3,303.5 | ||
Notional maturities for interest-rate contracts 2016 | 1,276.4 | ||
Notional maturities for interest-rate contracts 2017 | 728 | ||
Notional maturities for interest-rate contracts 2018 | 1,040.5 | ||
Notional maturities for interest-rate contracts 2019 | 95 | ||
Notional maturities for interest-rate contracts 2020 | 141.3 | ||
Notional maturities for interest-rate contracts thereafter | 22.3 | ||
Foreign-exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount outstanding | $ 286.1 | ||
Foreign-exchange contracts maturity period | Within one year |
Balance Sheet Classifications,
Balance Sheet Classifications, Fair Value, Gross and Pro-Forma Net Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Derivative assets | $ 137.3 | $ 89.2 |
Pro-forma net amount | 133.4 | 84.4 |
LIABILITIES | ||
Derivative liabilities | 48.2 | 48.5 |
Pro-forma net amount | 44.3 | 43.7 |
Interest-Rate Contracts | Financial Services | ||
ASSETS | ||
Less amounts not offset in financial instruments | (3.3) | (3.9) |
LIABILITIES | ||
Less amounts not offset in financial instruments | (3.3) | (3.9) |
Foreign-exchange contracts | Financial Services | ||
ASSETS | ||
Less amounts not offset in financial instruments | (0.2) | |
LIABILITIES | ||
Less amounts not offset in financial instruments | (0.2) | |
Foreign-exchange contracts | Truck, Parts and Other | ||
ASSETS | ||
Less amounts not offset in financial instruments | (0.4) | (0.9) |
LIABILITIES | ||
Less amounts not offset in financial instruments | (0.4) | (0.9) |
Designated as Hedging Instrument | ||
ASSETS | ||
Derivative assets | 136.1 | 83.9 |
LIABILITIES | ||
Derivative liabilities | 46.9 | 47.6 |
Designated as Hedging Instrument | Interest-Rate Contracts | Financial Services | Deferred Taxes And Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 46.7 | 45.7 |
Designated as Hedging Instrument | Interest-Rate Contracts | Financial Services | Other Assets | ||
ASSETS | ||
Derivative assets | 132.2 | 82.7 |
Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other | ||
LIABILITIES | ||
Derivative liabilities | 0.2 | 1.9 |
Designated as Hedging Instrument | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ||
ASSETS | ||
Derivative assets | 3.9 | 1.2 |
Economic hedge | ||
ASSETS | ||
Derivative assets | 1.2 | 5.3 |
LIABILITIES | ||
Derivative liabilities | 1.3 | 0.9 |
Economic hedge | Foreign-exchange contracts | Financial Services | Deferred Taxes And Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 1 | |
Economic hedge | Foreign-exchange contracts | Financial Services | Other Assets | ||
ASSETS | ||
Derivative assets | 0.3 | 3.4 |
Economic hedge | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other | ||
LIABILITIES | ||
Derivative liabilities | 0.3 | 0.9 |
Economic hedge | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ||
ASSETS | ||
Derivative assets | $ 0.9 | $ 1.9 |
(Income) or Expense Recognized
(Income) or Expense Recognized in Earnings Related to Fair Value Hedges (Detail) - Financial Services - Interest and other borrowing expenses - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Interest-rate swaps | $ (0.9) | $ 0.1 | $ 0.7 |
Term notes | $ 0.2 | $ (2.6) | $ (5.1) |
Pre-Tax Effects of Derivative I
Pre-Tax Effects of Derivative Instruments Recognized in OCI (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest-Rate Contracts | |||
Derivative [Line Items] | |||
Gain (loss) recognized in OCI | $ 33.8 | $ 24.4 | $ 54.4 |
Expense (income) reclassified out of AOCI into income | (28.5) | (21.7) | (36) |
Interest-Rate Contracts | Financial Services | |||
Derivative [Line Items] | |||
Gain (loss) recognized in OCI | 33.8 | 24.4 | 54.4 |
Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
Expense (income) reclassified out of AOCI into income | (28.5) | (21.7) | (36) |
Foreign-exchange contracts | |||
Derivative [Line Items] | |||
Gain (loss) recognized in OCI | 4.9 | 1.7 | (1.2) |
Expense (income) reclassified out of AOCI into income | (0.8) | (1.8) | 0.4 |
Foreign-exchange contracts | Truck, Parts and Other | |||
Derivative [Line Items] | |||
Gain (loss) recognized in OCI | 4.9 | 1.7 | (1.2) |
Foreign-exchange contracts | Truck, Parts and Other | Net sales and revenues | |||
Derivative [Line Items] | |||
Expense (income) reclassified out of AOCI into income | (0.1) | ||
Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues | |||
Derivative [Line Items] | |||
Expense (income) reclassified out of AOCI into income | 3.4 | 0.3 | 1 |
Foreign-exchange contracts | Truck, Parts and Other | Interest and other expenses, net | |||
Derivative [Line Items] | |||
Expense (income) reclassified out of AOCI into income | $ (4.1) | $ (2.1) | $ (0.6) |
(Income) Expense Recognized in
(Income) Expense Recognized in Earnings Related to Economic Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest-Rate Contracts | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | $ (1.5) | ||
Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | (1.5) | ||
Foreign-exchange contracts | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | $ (7.6) | $ 7.9 | (10.6) |
Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | (0.7) | (5.3) | (1.3) |
Foreign-exchange contracts | Truck, Parts and Other | Interest and other expenses, net | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 3 | 3.8 | 0.3 |
Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | (7.6) | 4.2 | $ (9.6) |
Foreign-exchange contracts | Financial Services | Selling, general and administrative | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | $ (2.3) | $ 5.2 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Subject to Recurring Fair Value Measurements (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 137.3 | $ 89.2 |
Derivative liabilities | 48.2 | 48.5 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 1,448.1 | 1,272 |
Derivative assets | 137.3 | 89.2 |
Derivative liabilities | 48.2 | 48.5 |
Fair Value, Measurements, Recurring | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 130.5 | 81.7 |
Derivative liabilities | 37.2 | 31.1 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1.7 | 1 |
Derivative liabilities | 9.5 | 14.6 |
Fair Value, Measurements, Recurring | Foreign-exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5.1 | 6.5 |
Derivative liabilities | 1.5 | 2.8 |
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 | 505.4 | 363.4 |
Fair Value, Measurements, Recurring | U.S. corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 76.7 | 81.5 |
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 | 15.7 | 8 |
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 | 587 | 532 |
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 | 193.7 | 194.1 |
Fair Value, Measurements, Recurring | Other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 69.6 | 93 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 15.1 | 7.7 |
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 | 15.1 | 7.7 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 1,433 | 1,264.3 |
Derivative assets | 137.3 | 89.2 |
Derivative liabilities | 48.2 | 48.5 |
Level 2 | Fair Value, Measurements, Recurring | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 130.5 | 81.7 |
Derivative liabilities | 37.2 | 31.1 |
Level 2 | Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1.7 | 1 |
Derivative liabilities | 9.5 | 14.6 |
Level 2 | Fair Value, Measurements, Recurring | Foreign-exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5.1 | 6.5 |
Derivative liabilities | 1.5 | 2.8 |
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 | 505.4 | 363.4 |
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 | 76.7 | 81.5 |
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 | 0.6 | 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 | 587 | 532 |
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 | 193.7 | 194.1 |
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 | $ 69.6 | $ 93 |
Carrying Amount and Fair Value
Carrying Amount and Fair Value of Financial Services Fixed-Rate Loans and Fixed-Rate Debt (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets, carrying amount | ||
Fixed-rate loans, carrying amount | $ 3,660.6 | $ 3,627.5 |
Liabilities, carrying amount | ||
Fixed-rate debt, carrying amount | 4,167.9 | 3,713.4 |
Assets, Fair Value | ||
Fixed-rate loans, Fair Value | 3,729 | 3,683.3 |
Liabilities, Fair Value | ||
Fixed-rate debt, Fair Value | $ 4,192.2 | $ 3,737.7 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options and Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock authorized for issuance | 46.7 | ||
Shares available for future grants | 15.5 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of option granted | $ 6.3 | $ 8.6 | $ 11.2 |
Fair value of option vested | 9.5 | $ 10.5 | $ 8.8 |
Unrecognized compensation cost related to unvested stock | $ 5.9 | ||
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 | $ 1.4 | ||
Recognized over a remaining weighted-average vesting period (year) | 1 year 6 months 4 days | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years |
Values of Option on Stock Price
Values of Option on Stock Price at Grant Date and Assumption (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.35% | 1.51% | 0.88% |
Expected volatility | 28.00% | 34.00% | 44.00% |
Expected dividend yield | 3.40% | 3.40% | 3.30% |
Expected term | 5 years | 5 years | 5 years |
Weighted average grant date fair value of options per share | $ 10.98 | $ 13.17 | $ 13.78 |
Summary of Activity Under Stock
Summary of Activity Under Stock Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of options exercised | $ 14.1 | $ 20.9 | $ 19.6 |
Cash received from stock option exercises | 21.8 | 29.1 | 31 |
Tax benefit related to stock award exercises | 3.5 | 4.4 | 3.9 |
Stock based compensation | 14.6 | 16.2 | 14 |
Tax benefit related to stock based compensation | $ 5.1 | $ 5.6 | $ 4.9 |
Summary of Options (Detail)
Summary of Options (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
NUMBER OF SHARES | ||
Options outstanding, beginning balance | shares | 4,536,700 | |
Granted | shares | 569,500 | |
Exercised | shares | (582,300) | |
Cancelled | shares | (102,300) | |
Options outstanding, ending balance | shares | 4,421,600 | |
Vested and expected to vest, end of period | shares | 4,325,600 | |
Exercisable, end of period | shares | 2,590,700 | |
PER SHARE EXERCISE PRICE | ||
Options outstanding, beginning balance | $ / shares | $ 44.25 | [1] |
Granted | $ / shares | 62.46 | [1] |
Exercised | $ / shares | 37.50 | [1] |
Cancelled | $ / shares | 55.17 | [1] |
Options outstanding, ending balance | $ / shares | 47.23 | [1] |
Vested and expected to vest, end of period | $ / shares | 46.93 | [1] |
Exercisable, end of period | $ / shares | $ 41.14 | [1] |
REMAINING CONTRACTUAL LIFE IN YEARS | ||
Options outstanding, ending balance | 5 years 8 months 9 days | [1] |
Vested and expected to vest, end of period | 5 years 7 months 17 days | [1] |
Exercisable, end of period | 4 years 15 days | [1] |
AGGREGATE INTRINSIC VALUE | ||
Options outstanding, ending balance | $ | $ 17.5 | |
Vested and expected to vest, end of period | $ | 17.5 | |
Exercisable, end of period | $ | $ 17.5 | |
[1] | Weighted Average |
Summary of Nonvested Restricted
Summary of Nonvested Restricted Shares Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended | |
Dec. 31, 2015$ / sharesshares | ||
NONVESTED NUMBER OF SHARES | ||
Nonvested awards outstanding, beginning balance | shares | 185,700 | |
Granted | shares | 112,000 | |
Vested | shares | (115,800) | |
Nonvested awards outstanding, ending balance | shares | 181,900 | |
GRANT DATE FAIR VALUE | ||
Nonvested awards outstanding, beginning balance | $ / shares | $ 51.60 | [1] |
Granted | $ / shares | 63.39 | [1] |
Vested | $ / shares | 51.70 | [1] |
Nonvested awards outstanding, ending balance | $ / shares | $ 58.79 | [1] |
[1] | Weighted Average |
Dilutive and Antidilutive Optio
Dilutive and Antidilutive Options (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Additional shares | 906,100 | 1,120,500 | 932,000 |
Antidilutive options | 1,180,400 | 673,700 | 873,800 |
Segment and Related Informat104
Segment and Related Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Reportable segments | Segment | 3 | ||
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Intercompany interest income | $ | $ 0.5 | $ 0.9 | $ 0.7 |
Geographical Area Data Recorded
Geographical Area Data Recorded to Consolidated (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales and revenues | $ 19,115.1 | $ 18,997 | $ 17,123.8 |
Property, plant and equipment, net | 2,176.4 | 2,313.3 | 2,513.3 |
Equipment on operating leases, net | 3,373 | 3,240.5 | 3,328.4 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 11,408.3 | 10,106.3 | 8,147.6 |
Property, plant and equipment, net | 1,140.5 | 1,132 | 1,183.1 |
Equipment on operating leases, net | 1,287.9 | 1,226.6 | 1,153.8 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 4,515.9 | 4,835.7 | 4,967.2 |
Other Countries | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,190.9 | 4,055 | 4,009 |
Property, plant and equipment, net | 597.2 | 663.9 | 710.2 |
Equipment on operating leases, net | 1,111.9 | 977.8 | 994 |
The Netherlands | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 438.7 | 517.4 | 620 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 321.3 | 342.2 | 414.9 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 321.9 | 347 | 404.1 |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | $ 330 | $ 346.9 | $ 361.6 |
Segment Reporting Information b
Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales and revenues | $ 19,115.1 | $ 18,997 | $ 17,123.8 |
Investment income | 21.8 | 22.3 | 28.6 |
Income before income taxes | 2,337.1 | 2,017.6 | 1,695 |
Depreciation and amortization | 907.1 | 917.7 | 810.7 |
Assets | 21,109.8 | 20,618.8 | 20,725.5 |
Expenditures for long-lived assets | 1,747 | 1,462.2 | 1,771.7 |
Truck, Parts and Other | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 17,942.8 | 17,792.8 | 15,948.9 |
Income before income taxes | 1,952.7 | 1,624.9 | 1,326.2 |
Cash and marketable securities | 3,378 | 2,937.1 | 2,925.2 |
Depreciation and amortization | 420.9 | 432.7 | 368.4 |
Assets | 8,855.2 | 8,701.5 | 9,095.4 |
Expenditures for long-lived assets | 702.6 | 526.9 | 840.5 |
Truck, Parts and Other | Trucks | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 14,782.5 | 14,594 | 13,002.9 |
Income before income taxes | 1,440.3 | 1,160.1 | 936.7 |
Depreciation and amortization | 399.8 | 415 | 352.9 |
Assets | 4,472.3 | 4,871.1 | 5,123.3 |
Expenditures for long-lived assets | 660 | 504.9 | 812.9 |
Truck, Parts and Other | Trucks | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 15,568.6 | 15,330.4 | 13,627.7 |
Truck, Parts and Other | Trucks | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | (786.1) | (736.4) | (624.8) |
Truck, Parts and Other | Parts | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,060.1 | 3,077.5 | 2,822.2 |
Income before income taxes | 555.6 | 496.7 | 416 |
Depreciation and amortization | 6.2 | 5.9 | 5.3 |
Assets | 793.3 | 787.2 | 748.4 |
Expenditures for long-lived assets | 24.9 | 9.9 | 6.8 |
Truck, Parts and Other | Parts | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,104.7 | 3,125.9 | 2,868.3 |
Truck, Parts and Other | Parts | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | (44.6) | (48.4) | (46.1) |
Truck, Parts and Other | Other | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 100.2 | 121.3 | 123.8 |
Income before income taxes | (43.2) | (31.9) | (26.5) |
Depreciation and amortization | 14.9 | 11.8 | 10.2 |
Assets | 211.6 | 106.1 | 298.5 |
Expenditures for long-lived assets | 17.7 | 12.1 | 20.8 |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1,172.3 | 1,204.2 | 1,174.9 |
Income before income taxes | 362.6 | 370.4 | 340.2 |
Depreciation and amortization | 486.2 | 485 | 442.3 |
Assets | 12,254.6 | 11,917.3 | 11,630.1 |
Expenditures for long-lived assets | $ 1,044.4 | $ 935.3 | $ 931.2 |