Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 351,986,606 | ||
Entity Public Float | $ 22,710 |
Consolidated Statements of Inco
Consolidated Statements of Income € in Millions, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | |
Provision for losses on receivables | $ 22.3 | $ 18.4 | $ 12.4 |
Investment income | 35.3 | 27.6 | 21.8 |
Income before income taxes | 2,173.3 | 1,130.4 | 2,337.1 |
Income taxes | 498.1 | 608.7 | 733.1 |
Net Income | $ 1,675.2 | $ 521.7 | $ 1,604 |
Net Income Per Share | |||
Basic | $ / shares | $ 4.76 | $ 1.49 | $ 4.52 |
Diluted | $ / shares | $ 4.75 | $ 1.48 | $ 4.51 |
Weighted Average Number of Common Shares Outstanding | |||
Basic | shares | 351.9 | 351.1 | 354.6 |
Diluted | shares | 352.9 | 351.8 | 355.6 |
Truck, Parts and Other | |||
Net sales and revenues | $ 18,187.5 | $ 15,846.6 | $ 17,942.8 |
Cost of sales and revenues | 15,593.7 | 13,517.7 | 15,292.1 |
Research and development | 264.7 | 247.2 | 239.8 |
Selling, general and administrative | 449.5 | 440.8 | 445.9 |
European Commission charge | 0 | 833 | 0 |
Interest and other expense, net | 5.6 | 11.6 | 12.3 |
Costs and Expenses, Total | 16,313.5 | 15,050.3 | 15,990.1 |
Income before income taxes | 1,874 | 796.3 | 1,952.7 |
Financial Services | |||
Interest and fees | 431.1 | 426.2 | 443.8 |
Operating lease, rental and other revenues | 837.8 | 760.5 | 728.5 |
Revenues | 1,268.9 | 1,186.7 | 1,172.3 |
Interest and other borrowing expenses | 149.6 | 127.2 | 118 |
Depreciation and other expenses | 727.5 | 635.2 | 583.7 |
Selling, general and administrative | 105.5 | 99.4 | 95.6 |
Provision for losses on receivables | 22.3 | 18.4 | 12.4 |
Costs and Expenses, Total | 1,004.9 | 880.2 | 809.7 |
Income before income taxes | $ 264 | $ 306.5 | $ 362.6 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 1,675.2 | $ 521.7 | $ 1,604 |
Unrealized (losses) gains on derivative contracts | |||
Net (loss) gain arising during the period | (125.5) | (6.5) | 38.7 |
Tax effect | 33.9 | 6.7 | (10.8) |
Reclassification adjustment | 133.4 | 10.8 | (29.3) |
Tax effect | (36.3) | (8.9) | 8.5 |
Net current period OCI, unrealized gains and (losses) on derivative contracts | 5.5 | 2.1 | 7.1 |
Unrealized (losses) gains on marketable debt securities | |||
Net holding loss | (1.5) | (0.1) | (2.3) |
Tax effect | 0.4 | 0.4 | 0.6 |
Reclassification adjustment | (0.6) | (3.7) | (2.1) |
Tax effect | 0.2 | 1 | 0.6 |
Net current period OCI, unrealized gains and (losses) on marketable debt securities | (1.5) | (2.4) | (3.2) |
Pension plans | |||
Net gain (loss) arising during the period | 37.1 | (50.3) | 17.7 |
Tax effect | (16.7) | 7.7 | (2.6) |
Reclassification adjustment | 26.6 | 28.9 | 42.4 |
Tax effect | (8.5) | (10) | (14.8) |
Net current period OCI, pension plans | 38.5 | (23.7) | 42.7 |
Foreign currency translation gain (loss) | 292 | (87.1) | (483.8) |
Net other comprehensive income (loss) | 334.5 | (111.1) | (437.2) |
Comprehensive Income | $ 2,009.7 | $ 410.6 | $ 1,166.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 2,364.7 | $ 1,915.7 |
Equipment on operating leases, net | 4,142 | 3,637.8 |
Property, plant and equipment, net | 2,464.4 | 2,260 |
Total Assets | 23,440.2 | 20,638.9 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, no par value - authorized 1.0 million shares, none issued | 0 | 0 |
Common stock, $1 par value - authorized 1.2 billion shares; issued 351.8 million and 350.7 million shares | 351.8 | 350.7 |
Additional paid-in capital | 123.2 | 70.1 |
Retained earnings | 8,369.1 | 7,484.9 |
Accumulated other comprehensive loss | (793.6) | (1,128.1) |
Total Stockholders’ Equity | 8,050.5 | 6,777.6 |
Liabilities and Equity, Total | 23,440.2 | 20,638.9 |
Truck, Parts and Other | ||
ASSETS | ||
Cash and cash equivalents | 2,254.8 | 1,781.7 |
Trade and other receivables, net | 1,127.9 | 862.2 |
Marketable debt securities | 1,367.1 | 1,140.9 |
Inventories, net | 928.4 | 727.8 |
Other current assets | 404.4 | 225.6 |
Total Truck, Parts and Other Current Assets | 6,082.6 | 4,738.2 |
Equipment on operating leases, net | 1,265.7 | 1,013.9 |
Property, plant and equipment, net | 2,464.4 | 2,260 |
Other noncurrent assets, net | 425.2 | 432 |
Total Assets | 10,237.9 | 8,444.1 |
Liabilities | ||
Accounts payable, accrued expenses and other | 2,569.5 | 2,034.1 |
Dividend payable | 422.1 | 210.4 |
Total Truck, Parts and Other Current Liabilities | 2,991.6 | 2,244.5 |
Residual value guarantees and deferred revenues | 1,339 | 1,072.6 |
Other liabilities | 939.8 | 739.1 |
Total Liabilities | 5,270.4 | 4,056.2 |
Financial Services | ||
ASSETS | ||
Cash and cash equivalents | 109.9 | 134 |
Finance and other receivables, net | 9,697.1 | 8,837.4 |
Equipment on operating leases, net | 2,876.3 | 2,623.9 |
Other assets | 519 | 599.5 |
Total Assets | 13,202.3 | 12,194.8 |
Liabilities | ||
Accounts payable, accrued expenses and other | 466.2 | 395 |
Commercial paper and bank loans | 2,933.9 | 2,447.5 |
Term notes | 5,945.5 | 6,027.7 |
Deferred taxes and other liabilities | 773.7 | 934.9 |
Total Liabilities | $ 10,119.3 | $ 9,805.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 351,800,000 | 350,700,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES: | |||
Net Income | $ 1,675.2 | $ 521.7 | $ 1,604 |
Adjustments to reconcile net income to cash provided by operations: | |||
Depreciation and amortization, Property, plant and equipment | 321.4 | 302.4 | 292.2 |
Depreciation and amortization, Equipment on operating leases and other | 786.1 | 690.7 | 614.9 |
Provision for losses on financial services receivables | 22.3 | 18.4 | 12.4 |
Deferred taxes | (173.9) | 30.9 | (55.2) |
Other, net | 43.6 | 30.3 | 46.6 |
Pension contributions | (70.6) | (185.7) | (62.9) |
(Increase) decrease in assets other than cash and cash equivalents: | |||
Trade and other receivables | (207.2) | (61.8) | 105.3 |
Wholesale receivables on new trucks | (272) | 401.6 | (273.4) |
Sales-type finance leases and dealer direct loans on new trucks | 71.9 | 116.1 | (6.6) |
Inventories | (149.9) | 64.1 | 64.3 |
Other assets, net | 131.4 | 41 | (125.1) |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued expenses | 333.6 | (8.6) | (162.6) |
Residual value guarantees and deferred revenues | 166.3 | 155.9 | 242 |
Other liabilities, net | 37.6 | 183.8 | 260.1 |
Net Cash Provided by Operating Activities | 2,715.8 | 2,300.8 | 2,556 |
INVESTING ACTIVITIES: | |||
Originations of retail loans and direct financing leases | (3,116.8) | (2,825.9) | (3,064.5) |
Collections on retail loans and direct financing leases | 2,713.7 | 2,509.8 | 2,681.9 |
Net decrease (increase) in wholesale receivables on used equipment | 5.2 | 9.5 | (24.7) |
Purchases of marketable debt securities | (970.3) | (1,031.9) | (1,329.8) |
Proceeds from sales and maturities of marketable debt securities | 779.5 | 1,304.8 | 1,035.5 |
Payments for property, plant and equipment | (423.4) | (375.2) | (286.7) |
Acquisitions of equipment for operating leases | (1,423.2) | (1,589.7) | (1,438.5) |
Proceeds from asset disposals | 470.7 | 433.8 | 448.8 |
Other, net | 0.5 | 3.1 | |
Net Cash Used in Investing Activities | (1,964.6) | (1,564.3) | (1,974.9) |
FINANCING ACTIVITIES: | |||
Payments of cash dividends | (558.3) | (829.3) | (680.5) |
Purchases of treasury stock | (70.5) | (201.6) | |
Proceeds from stock compensation transactions | 39.3 | 29.4 | 21.8 |
Net increase (decrease) in commercial paper and short-term bank loans | 352.1 | (322.8) | 250.7 |
Proceeds from term debt | 1,670.2 | 1,994.8 | 1,993.2 |
Payments on term debt | (1,897.1) | (1,625.1) | (1,580.1) |
Net Cash Used in Financing Activities | (393.8) | (823.5) | (196.5) |
Effect of exchange rate changes on cash | 91.6 | (13.7) | (105.8) |
Net Increase (Decrease) in Cash and Cash Equivalents | 449 | (100.7) | 278.8 |
Cash and cash equivalents at beginning of year | 1,915.7 | 2,016.4 | 1,737.6 |
Cash and cash equivalents at end of year | $ 2,364.7 | $ 1,915.7 | $ 2,016.4 |
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: |
Beginning balance at Dec. 31, 2014 | $ 355.2 | $ 156.7 | $ (42.7) | $ 6,863.8 | $ (579.8) | |
Net income | $ 1,604 | 1,604 | ||||
Purchases, shares: 2017 - nil; 2016 - 1.38; 2015 - 3.85 | (201.6) | |||||
Other comprehensive income (loss) | (437.2) | (437.2) | ||||
Cash dividends declared on common stock, per share: 2017 - $2.19; 2016 - $1.56; 2015 - $2.32 | (819.8) | |||||
Treasury stock retirement | (4.6) | (128.5) | 244.3 | (111.2) | ||
Stock compensation | 0.7 | |||||
Stock compensation and tax benefit | 41.1 | |||||
Ending balance at Dec. 31, 2015 | 6,940.4 | 351.3 | 69.3 | 7,536.8 | (1,017) | |
Net income | 521.7 | 521.7 | ||||
Purchases, shares: 2017 - nil; 2016 - 1.38; 2015 - 3.85 | (70.5) | |||||
Other comprehensive income (loss) | (111.1) | (111.1) | ||||
Cash dividends declared on common stock, per share: 2017 - $2.19; 2016 - $1.56; 2015 - $2.32 | (547.9) | |||||
Treasury stock retirement | (1.4) | (43.4) | $ 70.5 | (25.7) | ||
Stock compensation | 0.8 | |||||
Stock compensation and tax benefit | 44.2 | |||||
Ending balance at Dec. 31, 2016 | 6,777.6 | 350.7 | 70.1 | 7,484.9 | (1,128.1) | |
Net income | 1,675.2 | 1,675.2 | ||||
Other comprehensive income (loss) | 334.5 | 334.5 | ||||
Cash dividends declared on common stock, per share: 2017 - $2.19; 2016 - $1.56; 2015 - $2.32 | (771.1) | |||||
Stock compensation | 1.1 | |||||
Stock compensation and tax benefit | 53.1 | |||||
Cumulative effect of change in accounting principle | (19.9) | |||||
Ending balance at Dec. 31, 2017 | $ 8,050.5 | $ 351.8 | $ 123.2 | $ 8,369.1 | $ (793.6) |
Consolidated Statements Of Sto8
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
TREASURY STOCK, AT COST: | |||
Purchases, shares | 0 | 1,380 | 3,850 |
RETAINED EARNINGS: | |||
Cash dividends declared on common stock, per share | $ 2.19 | $ 1.56 | $ 2.32 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | A. SIGNIFICANT ACCOUNTING POLICIES Description of Operations: PACCAR Inc (the Company or PACCAR) is a multinational company operating in three principal segments: (1) the Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks; (2) the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles; and (3) the Financial Services segment (PFS) includes finance and leasing products and services provided to customers and dealers. PACCAR’s finance and leasing activities are principally related to PACCAR products and associated equipment. PACCAR’s sales and revenues are derived primarily from North America and Europe. The Company also operates in Australia and Brasil and sells trucks and parts to customers in Asia, Africa, Middle East and South America. Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition: Truck, Parts and Other: Substantially all sales and revenues of trucks and related aftermarket parts are recorded by the Company when products are shipped to dealers or customers, except for certain truck shipments that are subject to a residual value guarantee to the customer. Revenues related to these shipments are generally recognized on a straight-line basis over the guarantee period (see Note E). At the time certain truck and parts sales to a dealer are recognized, the Company records an estimate of any future sales incentive costs related to such sales. The estimate is based on historical data and announced incentive programs. In the Truck and Parts segments, the Company grants extended payment terms on selected receivables. Interest is charged for the period beyond standard payment terms. Interest income is recorded as earned. Financial Services: Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts, generally 36 to 60 months, using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. Rental revenues for the years ended December 31, 2017, 2016 and 2015 were $760.9, $698.9 and $668.6, respectively. Depreciation and related leased unit operating expenses were $665.7, $581.7 and $536.2 for the years ended December 31, 2017, 2016 and 2015, respectively. Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at December 31, 2017 or December 31, 2016. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Cash and Cash Equivalents: Cash equivalents consist of liquid investments with a maturity at date of purchase of 90 days or less. Marketable Debt Securities: The Company's investments in marketable debt securities are classified as available-for-sale. These investments are stated at fair value with any unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive income (loss) (AOCI). The Company utilizes third-party pricing services for all of its marketable debt security valuations. The Company reviews the pricing methodology used by the third‑party pricing services, including the manner employed to collect market information. On a quarterly basis, the Company also performs review and validation procedures on the pricing information received from the third‑party providers. These procedures help ensure that the fair value information used by the Company is determined in accordance with applicable accounting guidance. The Company evaluates its investment in marketable debt securities at the end of each reporting period to determine if a decline in fair value is other-than-temporary. Realized losses are recognized upon management’s determination that a decline in fair value is other-than-temporary. The determination of other-than-temporary impairment is a subjective process, requiring the use of judgments and assumptions regarding the amount and timing of recovery. The Company reviews and evaluates its investments at least quarterly to identify investments that have indications of other-than-temporary impairments. It is reasonably possible that a change in estimate could occur in the near term relating to other-than-temporary impairment. Accordingly, the Company considers several factors when evaluating debt securities for other-than-temporary impairment, including whether the decline in fair value of the security is due to increased default risk for the specific issuer or market interest rate risk. In assessing default risk, the Company considers the collectability of principal and interest payments by monitoring changes to issuers’ credit ratings, specific credit events associated with individual issuers as well as the credit ratings of any financial guarantor, and the extent and duration to which amortized cost exceeds fair value. In assessing market interest rate risk, including benchmark interest rates and credit spreads, the Company considers its intent for selling the securities and whether it is more likely than not the Company will be able to hold these securities until the recovery of any unrealized losses. Receivables: Trade and Other Receivables: The Company’s trade and other receivables are recorded at cost, net of allowances. At December 31, 2017 and 2016, respectively, trade and other receivables include trade receivables from dealers and customers of $962.0 and $734.6 and other receivables of $165.9 and $127.6 relating primarily to value added tax receivables and supplier allowances and rebates. Finance and Other Receivables: Loans – Loans represent fixed or floating-rate loans to customers collateralized by the vehicles purchased and are recorded at amortized cost. Finance leases – Finance leases are retail direct financing leases and sales-type finance leases, which lease equipment to retail customers and dealers. These leases are reported as the sum of minimum lease payments receivable and estimated residual value of the property subject to the contracts, reduced by unearned interest which is shown separately. Dealer wholesale financing – Dealer wholesale financing is floating-rate wholesale loans to PACCAR dealers for new and used trucks and are recorded at amortized cost. The loans are collateralized by the trucks being financed. Operating lease receivables and other – Operating lease receivables and other include monthly rentals due on operating leases, unamortized loan and lease origination costs, interest on loans and other amounts due within one year in the normal course of business. Allowance for Credit Losses: Truck, Parts and Other: The Company historically has not experienced significant losses or past due amounts on trade and other receivables in its Truck, Parts and Other businesses. Accounts are considered past due once the unpaid balance is over 30 days outstanding based on contractual payment terms. Accounts are charged-off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible. The allowance for credit losses for Truck, Parts and Other was $1.5 and $1.7 for the years ended December 31, 2017 and 2016, respectively. Net charge-offs were $.1, $.1 and $.3 for the years ended December 31, 2017, 2016 and 2015, respectively. Financial Services: The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases 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 ths 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 three to five years, 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 sold individually, which is the lowest unit of account, 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 are stated at the lower of cost or market. Cost of inventories in the U.S. is determined principally by the last‑in, first-out (LIFO) method. Cost of all other inventories is determined principally by the first-in, first-out (FIFO) method. Cost of sales and revenues include shipping and handling costs incurred to deliver products to dealers and customers. Equipment on Operating Leases: The Company’s Financial Services segment leases equipment under operating leases to its customers. In addition, in the Truck segment, equipment sold to customers in Europe subject to a residual value guarantee (RVG) by the Company is generally accounted for as an operating lease. Equipment is recorded at cost and is depreciated on the straight-line basis to the lower of the estimated residual value or guarantee value. Lease and guarantee periods generally range from two to five years. Estimated useful lives of the equipment range from four to nine years. The Company reviews residual values of equipment on operating leases periodically to determine that recorded amounts are appropriate. Property, Plant and Equipment: Property, plant and equipment are stated at cost. Depreciation is computed principally by the straight-line method based on the estimated useful lives of the various classes of assets. Certain production tooling is amortized on a unit of production basis. Long-lived Assets and Goodwill: The Company evaluates the carrying value of property, plant and equipment when events and circumstances warrant a review. Goodwill is tested for impairment at least on an annual basis. There were no significant impairment charges for the three years ended December 31, 2017. Goodwill was $117.4 and $103.0 at December 31, 2017 and 2016, respectively. The increase in value was mostly due to currency translation. Product Support Liabilities: Product support liabilities include estimated future payments related to product warranties and deferred revenues on optional extended warranties and repair and maintenance (R&M) contracts. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical data regarding the source, frequency and cost of claims, net of any recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred. Derivative Financial Instruments: As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rates and foreign currency risk. Certain derivative instruments designated as either cash flow hedges or fair value hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as economic hedges. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate and certain foreign-exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its swap counterparties is limited to the asset position of its swap portfolio. The asset position of the Company’s swap portfolio is $53.3 at December 31, 2017. 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 in current earnings. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Foreign Currency Translation: For most of the Company’s foreign subsidiaries, the local currency is the functional currency. All assets and liabilities are translated at year-end exchange rates and all income statement amounts are translated at the weighted average rates for the period. Translation adjustments are recorded in AOCI. The Company uses the U.S. dollar as the functional currency for all but one of its Mexican subsidiaries, which uses the local currency. For the U.S. functional currency entities in Mexico, inventories, cost of sales, property, plant and equipment and depreciation are remeasured at historical rates and resulting adjustments are included in net income. Earnings per Share: Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding, plus the effect of any participating securities. Diluted earnings per common share are computed assuming that all potentially dilutive securities are converted into common shares under the treasury stock method. New Accounting Pronouncements: In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02 Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendment requires a reclassification from accumulated other comprehensive income (AOCI) to retained earnings the difference between the historical corporate income tax rate and the newly enacted income tax rate resulting from the Tax Act. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. Upon adoption, the Company estimates Retained earnings will increase and AOCI will decrease approximately $40 million with no impact to Stockholders’ Equity. The Company expects to early adopt this ASU in 2018. In March 2017, FASB issued ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The most significant effect of the standard relates to trucks sold in Europe that are subject to a residual value guarantee (RVG) and are currently accounted for as an operating lease in the Truck, Parts and Other section of the Company’s Consolidated Balance Sheets (see Note E). Under the new standard, revenues will be recognized immediately for certain of these RVG contracts that allow customers the option to return their truck and for which there is no economic incentive to do so. The Company expects the overall effects on revenues to not be significant, as the increase in revenues from immediate recognition will largely be offset by reduced amortization of RVG revenue that had been deferred under the prior standard. Upon adoption of the new standard, total RVG assets will decrease by approximately $497 million and the related liability will decrease by approximately $520 million. The cumulative effect adjustment will increase Retained earnings by approximately $17 million, net of tax. Also as required by the new standard, the Company will recognize an asset for the value of expected returned aftermarket parts which had previously been netted with the related liabilities. The new standard also requires new and expanded footnote disclosures. In addition to ASU 2016-16 disclosed above, the Company adopted the following standards effective January 1, 2017, none of which had a material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION 2017-04 * Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. 2016-09 ** Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. 2015-11 ** Inventory (Topic 330): Simplifying the Measurement of Inventory. * The Company early adopted in 2017. ** The Company adopted on the effective date of January 1, 2017. The FASB also issued the following standards, which are not expected to have a material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION EFFECTIVE DATE 2016-01 * Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. January 1, 2018 2016-15 * Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. January 1, 2018 2017-12 ** Derivative and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. January 1, 2019 * The Company will adopt on the effective date. ** The Company expects to early adopt on January 1, 2018. |
Investments in Marketable Debt
Investments in Marketable Debt Securities | 12 Months Ended |
Dec. 31, 2017 | |
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: AMORTIZED UNREALIZED UNREALIZED FAIR 2017 COST GAINS LOSSES VALUE U.S. tax-exempt securities $ 537.9 $ 2.4 $ 535.5 U.S. corporate securities 89.7 $ .2 .2 89.7 U.S. government and agency securities 48.9 .2 48.7 Non-U.S. corporate securities 459.4 1.3 1.4 459.3 Non-U.S. government securities 91.5 .3 .1 91.7 Other debt securities 142.8 .1 .7 142.2 $ 1,370.2 $ 1.9 $ 5.0 $ 1,367.1 AMORTIZED UNREALIZED UNREALIZED FAIR 2016 COST GAINS LOSSES VALUE U.S. tax-exempt securities $ 597.9 $ .2 $ 3.1 $ 595.0 U.S. corporate securities 47.6 .2 47.8 U.S. government and agency securities 16.0 16.0 Non-U.S. corporate securities 306.9 1.5 .4 308.0 Non-U.S. government securities 97.6 .6 98.2 Other debt securities 75.9 .2 .2 75.9 $ 1,141.9 $ 2.7 $ 3.7 $ 1,140.9 The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest and dividend income and realized gains and losses are included in investment income. The cost of securities sold is based on the specific identification method. Gross realized gains were $1.4, $4.4 and Marketable debt securities with continuous unrealized losses and their related fair values were as follows: At December 31, 2017 2016 LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER Fair value $ 908.5 $ 18.4 $ 615.5 Unrealized losses 4.8 .2 3.7 For the investment securities in gross unrealized loss positions identified above, the Company does not intend to sell the investment securities. It is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairments during the periods presented. Contractual maturities on marketable debt securities at December 31, 2017 AMORTIZED FAIR Maturities: COST VALUE Within one year $ 413.7 $ 413.3 One to five years 939.6 936.9 More than ten years 16.9 16.9 $ 1,370.2 $ 1,367.1 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | C. INVENTORIES Inventories include the following: At December 31, 2017 2016 Finished products $ 515.7 $ 452.3 Work in process and raw materials 586.2 444.7 1,101.9 897.0 Less LIFO reserve (173.5 ) (169.2 ) $ 928.4 $ 727.8 Inventories valued using the LIFO method comprised 47% and 49% of consolidated inventories before deducting the LIFO reserve at December 31, 2017 and 2016, respectively. |
Finance and Other Receivables
Finance and Other Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Finance and Other Receivables | D. FINANCE AND OTHER RECEIVABLES Finance and other receivables include the following: At December 31, 2017 2016 Loans $ 4,147.8 $ 3,948.6 Direct financing leases 3,211.7 2,798.0 Sales-type finance leases 781.1 867.3 Dealer wholesale financing 1,880.6 1,528.5 Operating lease receivables and other 161.1 150.9 Unearned interest: Finance leases (368.0 ) (344.7 ) $ 9,814.3 $ 8,948.6 Less allowance for losses: Loans and leases (101.9 ) (97.1 ) Dealer wholesale financing (6.0 ) (5.5 ) Operating lease receivables and other (9.3 ) (8.6 ) $ 9,697.1 $ 8,837.4 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: FINANCE Beginning January 1, 2018 LOANS LEASES 2018 $ 1,351.5 $ 1,226.7 2019 1,088.1 959.6 2020 857.2 716.6 2021 542.0 440.6 2022 242.9 217.8 Thereafter 66.1 90.6 $ 4,147.8 $ 3,651.9 Estimated residual values included with finance leases amounted to $340.9 in 2017 and $239.1 in 2016. Experience indicates substantially all of dealer wholesale financing will be repaid within one year. In addition, repayment experience indicates that some loans, leases and other finance receivables will be paid prior to contract maturity, while others may be extended or modified. For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating more than five trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk. Allowance for Credit Losses: The allowance for credit losses is summarized as follows: 2017 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 5.5 $ 9.6 $ 87.5 $ 8.6 $ 111.2 Provision for losses (.3 ) 21.1 1.5 22.3 Charge-offs (24.8 ) (1.9 ) (26.7 ) Recoveries 5.0 .3 5.3 Currency translation and other .5 .1 3.7 .8 5.1 Balance at December 31 $ 6.0 $ 9.4 $ 92.5 $ 9.3 $ 117.2 2016 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 7.3 $ 10.3 $ 88.9 $ 8.3 $ 114.8 Provision for losses (1.7 ) (.7 ) 18.6 2.2 18.4 Charge-offs (22.9 ) (2.1 ) (25.0 ) Recoveries 5.5 .3 5.8 Currency translation and other (.1 ) (2.6 ) (.1 ) (2.8 ) Balance at December 31 $ 5.5 $ 9.6 $ 87.5 $ 8.6 $ 111.2 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 * Operating lease and other trade receivables. Information regarding finance receivables evaluated and determined individually and collectively is as follows: DEALER CUSTOMER At December 31, 2017 WHOLESALE RETAIL RETAIL TOTAL Recorded investment for impaired finance receivables evaluated individually $ .1 $ 4.0 $ 50.8 $ 54.9 Allowance for impaired finance receivables determined individually .1 6.6 6.7 Recorded investment for finance receivables evaluated collectively 1,880.5 1,354.7 6,363.1 9,598.3 Allowance for finance receivables determined collectively 5.9 9.4 85.9 101.2 DEALER CUSTOMER At December 31, 2016 WHOLESALE RETAIL RETAIL TOTAL Recorded investment for impaired finance receivables evaluated individually $ .1 $ 57.3 $ 57.4 Allowance for impaired finance receivables determined individually .1 4.9 5.0 Recorded investment for finance receivables evaluated collectively 1,528.4 $ 1,406.0 5,805.9 8,740.3 Allowance for finance receivables determined collectively 5.4 9.6 82.6 97.6 The recorded investment for finance receivables that are on non-accrual status is as follows: At December 31, 2017 2016 Dealer: Wholesale $ .1 $ .1 Customer retail: Fleet 44.4 49.5 Owner/operator 6.0 6.9 $ 50.5 $ 56.5 Impaired Loans: Impaired loans are summarized below. The impaired loans with specific reserve represent the unpaid principal balance. The recorded investment of impaired loans as of December 31, 2017 and December 31, 2016 was not significantly different than the unpaid principal balance. DEALER CUSTOMER RETAIL At December 31, 2017 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Impaired loans with a specific reserve $ .1 $ 18.8 $ 1.0 $ 19.9 Associated allowance (.1 ) (3.0 ) (.2 ) (3.3 ) $ 15.8 $ .8 $ 16.6 Impaired loans with no specific reserve $ 3.9 13.1 .2 17.2 Net carrying amount of impaired loans $ 3.9 $ 28.9 $ 1.0 $ 33.8 Average recorded investment $ .1 $ 4.0 $ 31.3 $ 1.8 $ 37.2 DEALER CUSTOMER RETAIL At December 31, 2016 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Impaired loans with a specific reserve $ .1 $ 18.9 $ 1.8 $ 20.8 Associated allowance (.1 ) (2.8 ) (.3 ) (3.2 ) $ 16.1 $ 1.5 $ 17.6 Impaired loans with no specific reserve 10.8 .2 11.0 Net carrying amount of impaired loans $ 26.9 $ 1.7 $ 28.6 Average recorded investment $ 2.8 $ 28.0 $ 2.4 $ 33.2 During the period the loans above were considered impaired, interest income recognized on a cash basis was as follows: 2017 2016 2015 Interest income recognized: Customer retail - fleet $ 1.6 $ 1.1 $ 1.4 Customer retail - owner/operator .1 .4 .4 $ 1.7 $ 1.5 $ 1.8 Credit Quality: The Company's customers are principally concentrated in the transportation industry in North America, Europe and Australia. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 5% of the total portfolio assets. The Company retains as collateral a security interest in the related equipment. At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss. The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high‑risk. Watch accounts are not impaired. At-risk accounts are accounts that are impaired, including TDRs, accounts over 90 days past due and other accounts on non-accrual status. The tables below summarize the Company’s finance receivables by credit quality indicator and portfolio class. DEALER CUSTOMER RETAIL At December 31, 2017 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Performing $ 1,874.5 $ 1,354.7 $ 5,290.3 $ 1,005.2 $ 9,524.7 Watch 6.0 62.9 4.7 73.6 At-risk .1 4.0 44.7 6.1 54.9 $ 1,880.6 $ 1,358.7 $ 5,397.9 $ 1,016.0 $ 9,653.2 DEALER CUSTOMER RETAIL At December 31, 2016 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Performing $ 1,519.3 $ 1,406.0 $ 4,863.4 $ 922.1 $ 8,710.8 Watch 9.1 14.9 5.5 29.5 At-risk .1 50.4 6.9 57.4 $ 1,528.5 $ 1,406.0 $ 4,928.7 $ 934.5 $ 8,797.7 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, 2017 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Current and up to 30 days past due $ 1,880.5 $ 1,358.7 $ 5,365.7 $ 1,007.4 $ 9,612.3 31 – 60 days past due 14.7 4.0 18.7 Greater than 60 days past due .1 17.5 4.6 22.2 $ 1,880.6 $ 1,358.7 $ 5,397.9 $ 1,016.0 $ 9,653.2 DEALER CUSTOMER RETAIL At December 31, 2016 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Current and up to 30 days past due $ 1,528.4 $ 1,406.0 $ 4,898.4 $ 926.4 $ 8,759.2 31 – 60 days past due 12.6 3.9 16.5 Greater than 60 days past due .1 17.7 4.2 22.0 $ 1,528.5 $ 1,406.0 $ 4,928.7 $ 934.5 $ 8,797.7 Troubled Debt Restructurings: The balance of TDRs was $37.9 and $43.1 at December 31, 2017 and December 31, 2016, respectively. At modification date, the pre-modification and post-modification recorded investment balances for finance receivables modified during the period by portfolio class are as follows: 2017 2016 RECORDED INVESTMENT RECORDED INVESTMENT PRE-MODIFICATION POST-MODIFICATION PRE-MODIFICATION POST-MODIFICATION Fleet $ 19.9 $ 19.9 $ 27.2 $ 27.2 Owner/operator .6 .6 4.4 4.4 $ 20.5 $ 20.5 $ 31.6 $ 31.6 The effect on the allowance for credit losses from such modifications was not significant at December 31, 2017 and 2016. 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: 2017 2016 Fleet $ 4.7 $ .3 Owner/operator .2 .4 $ 4.9 $ .7 There were $1.4 and $4.8 of finance receivables modified as TDRs during the previous twelve months that subsequently defaulted and were charged off for the year ended December 31, 2017 and 2016, respectively. Repossessions: When the Company determines a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating leases. The Company records the vehicles as used truck inventory included in Financial Services Other assets on the Consolidated Balance Sheets. The balance of repossessed inventory at December 31, 2017 and 2016 was $13.1 and $25.4, respectively. Proceeds from the sales of repossessed assets were $58.3, $51.7 and $48.0 for the years ended December 31, 2017, 2016 and 2015, respectively. These amounts are included in Proceeds from asset disposals in the Consolidated Statements of Cash Flows. Write-downs of repossessed equipment on operating leases are recorded as impairments and included in Financial Services Depreciation and other expenses on the Consolidated Statements of Income. |
Equipment On Operating Leases
Equipment On Operating Leases | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2017 2016 Equipment on operating leases $ 1,615.5 $ 1,282.3 $ 4,066.3 $ 3,640.6 Less allowance for depreciation (349.8 ) (268.4 ) (1,190.0 ) (1,016.7 ) $ 1,265.7 $ 1,013.9 $ 2,876.3 $ 2,623.9 Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2018 are $628.5, $433.2, $267.1, $138.2, $49.4 and $9.6 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, 2017 2016 Residual value guarantees $ 909.8 $ 699.2 Deferred lease revenues 429.2 373.4 $ 1,339.0 $ 1,072.6 The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2017, the annual amortization of deferred revenues beginning January 1, 2018 is $188.9, $123.8, $69.5, $42.3, $4.5 and $.2 thereafter. Annual maturities of the RVGs beginning January 1, 2018 are $287.8, $269.9, $209.5, $79.8, $54.2 and $8.6 thereafter. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 Land $ 263.3 $ 221.2 Buildings and improvements 10 - 40 years 1,315.1 1,134.1 Machinery, equipment and production tooling 3 - 12 years 3,782.1 3,285.2 Construction in progress 253.8 352.8 5,614.3 4,993.3 Less allowance for depreciation (3,149.9 ) (2,733.3 ) $ 2,464.4 $ 2,260.0 |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Truck, Parts and Other: Accounts payable $ 1,154.7 $ 938.6 Product support liabilities 372.1 344.2 Accrued expenses 401.4 233.1 Accrued capital expenditures 120.1 111.2 Salaries and wages 238.9 194.8 Other 282.3 212.2 $ 2,569.5 $ 2,034.1 |
Product Support Liabilities
Product Support Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Product Support Liabilities | H. PRODUCT SUPPORT LIABILITIES Changes in product support liabilities are summarized as follows: WARRANTY RESERVES 2017 2016 2015 Balance at January 1 $ 282.1 $ 346.2 $ 310.8 Cost accruals 242.1 211.9 294.8 Payments (236.8 ) (255.7 ) (228.8 ) Change in estimates for pre-existing warranties (2.0 ) (7.3 ) (21.3 ) Currency translation 13.4 (13.0 ) (9.3 ) Balance at December 31 $ 298.8 $ 282.1 $ 346.2 DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS 2017 2016 2015 Balance at January 1 $ 573.5 $ 524.8 $ 462.0 Deferred revenues 371.8 347.6 333.0 Revenues recognized (328.2 ) (274.3 ) (248.4 ) Currency translation 36.8 (24.6 ) (21.8 ) Balance at December 31 $ 653.9 $ 573.5 $ 524.8 Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: WARRANTY RESERVES DEFERRED REVENUES At December 31, 2017 2016 2017 2016 Truck, Parts and Other: Accounts payable, accrued expenses and other $ 176.0 $ 181.4 $ 196.1 $ 162.8 Other liabilities 122.8 100.7 441.0 395.7 Financial Services: Deferred taxes and other liabilities 16.8 15.0 $ 298.8 $ 282.1 $ 653.9 $ 573.5 |
Borrowings And Credit Arrangeme
Borrowings And Credit Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings And Credit Arrangements | I. BORROWINGS AND CREDIT ARRANGEMENTS Financial Services borrowings include the following: 2017 2016 EFFECTIVE EFFECTIVE At December 31, RATE BORROWINGS RATE BORROWINGS Commercial paper 1.3 % $ 2,723.7 .7 % $ 2,242.5 Bank loans 6.9 % 210.2 5.5 % 205.0 2,933.9 2,447.5 Term notes 1.7 % 5,945.5 1.5 % 6,027.7 1.7 % $ 8,879.4 1.4 % $ 8,475.2 Commercial paper and term notes borrowings were $8,669.2 and $8,270.2 at December 31, 2017 and 2016, respectively. Unamortized debt issuance costs, unamortized discounts and the net effect of fair value hedges were $(20.9) and $(19.3) at December 31, 2017 and 2016, respectively. The effective rate is the weighted average rate as of December 31, 2017 and 2016 and includes the effects of interest-rate contracts. The annual maturities of the Financial Services borrowings are as follows: COMMERCIAL BANK TERM Beginning January 1, 2018 PAPER LOANS NOTES TOTAL 2018 $ 2,725.5 $ 57.1 $ 1,693.1 $ 4,475.7 2019 27.8 1,785.4 1,813.2 2020 74.8 1,610.3 1,685.1 2021 50.5 575.8 626.3 2022 300.0 300.0 $ 2,725.5 $ 210.2 $ 5,964.6 $ 8,900.3 Interest paid on borrowings was $127.4, $108.2, and $101.3 in 2017, 2016 and 2015, respectively. For the years ended December 31, 2017, 2016 and 2015, the Company capitalized interest on borrowings of nil for all periods presented, 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, 2017 was $4,450.0. The registration expires in November 2018 and does not limit the principal amount of debt securities that may be issued during that period. PFC intends to renew the registration in 2018. As of December 31, 2017, the Company’s European finance subsidiary, PACCAR Financial Europe, had €1,343.6 In April 2016, PACCAR Financial Mexico registered a 10,000.0 peso medium-term note and commercial paper program with the Comision Nacional Bancaria y de Valores. The registration expires in April 2021 and limits the amount of commercial paper (up to one year) to 5,000.0 pesos. At December 31, 2017, 6,250.0 pesos remained available for issuance. The Company has line of credit arrangements of $3,520.0, of which $3,306.8 were unused at December 31, 2017. Included in these arrangements are $3,000.0 of syndicated bank facilities, of which $1,000.0 expires in June 2018, $1,000.0 expires in June 2021 and $1,000.0 expires in June 2022. 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, 2017. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
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 2026. At January 1, 2018, annual minimum rent payments under non-cancelable operating leases having initial or remaining terms in excess of one year are $23.0, $14.6, $10.3, $6.5, $4.4 and $2.6 thereafter. For the years ended December 31, 2017, 2016 and 2015, total rental expenses under all leases amounted to $30.1, $28.8 and $30.5, respectively. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | K. COMMITMENTS AND CONTINGENCIES At December 31, 2017, PACCAR had standby letters of credit and surety bonds totaling $26.3, from third party financial institutions, in the normal course of business, which guarantee various insurance, financing and other activities. At December 31, 2017, PACCAR’s financial services companies, in the normal course of business, had outstanding commitments to fund new loan and lease transactions amounting to $928.6. The commitments generally expire in 90 days. The Company had other commitments, primarily to purchase production inventory, equipment and energy amounting to $243.9, $71.6, $69.1, $62.3, $60.5 and nil for 2018, 2019, 2020, 2021, 2022 and beyond, respectively. 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, 2017, 2016 and 2015 were $1.9, $2.2 and $2.0, 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. In the first half of 2016, the Company recorded a charge of €752.7 ($833.0) in connection with an investigation by the European Commission (EC) of all major European truck manufacturers, including DAF Trucks N.V., its subsidiary DAF Trucks Deutschland GmbH (collectively, “DAF”) and the Company as their parent. On July 19, 2016, the EC reached a settlement with DAF and the Company under which the EC imposed a fine of €752.7 ($833.0) for infringement of European Union competition rules. DAF paid the fine in August 2016. Following the EC settlement, claims and lawsuits have been filed against the Company, DAF and certain DAF subsidiaries and other truck manufacturers. Others may bring EC related claims and lawsuits against the Company or its subsidiaries. While the Company believes it has meritorious defenses, such claims and lawsuits will likely take a significant period of time to resolve, and it is not possible to estimate a range of potential loss. An adverse outcome of such proceedings could have a material impact on the Company’s results of operations. PACCAR is also a defendant in various other 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 various other proceedings and contingent liabilities will have a material effect on the consolidated financial statements. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | L. EMPLOYEE BENEFITS Severance Costs: The Company incurred severance expense in 2017, 2016 and 2015 of $.8, $2.0 and $3.3, respectively. Defined Benefit Pension Plans: The Company has several defined benefit pension plans, which cover a majority of its employees. The Company evaluates its actuarial assumptions on an annual basis and considers changes based upon market conditions and other factors. 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 $70.6 to its pension plans in 2017 and $185.7 in 2016. The Company expects to contribute in the range of $70.0 to $100.0 to its pension plans in 2018, of which $21.2 is estimated to satisfy minimum funding requirements. Annual benefits expected to be paid beginning January 1, 2018 are $84.4, $87.1, $94.0, $99.9, $106.2 and for the five years thereafter, a total of $609.7. 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 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 fair value of commingled trust funds is determined using the market approach and is based on the unadjusted net asset value (NAV) per unit as determined by the sponsor of the fund based on the fair values of underlying investments. These assets are collective investment trusts, and substantially all of these investments have no redemption restrictions or unfunded commitments. Securities measured at NAV per unit as a practical expedient are not classified in the fair value hierarchy. The following information details the allocation of plan assets by investment type. See Note P for definitions of fair value levels. FAIR VALUE HIERARCHY At December 31, 2017 TARGET LEVEL 1 LEVEL 2 TOTAL MEASURED AT NAV TOTAL Equities: U.S. equities $ 768.5 $ 768.5 Global equities 866.8 866.8 Total equities 50 - 70% 1,635.3 1,635.3 Fixed income: U.S. fixed income $ 223.3 $ 238.2 $ 461.5 $ 416.0 $ 877.5 Non-U.S. fixed income 27.4 27.4 299.4 326.8 Total fixed income 30 - 50% 223.3 265.6 488.9 715.4 1,204.3 Cash and other 9.2 70.1 79.3 .7 80.0 Total plan assets $ 232.5 $ 335.7 $ 568.2 $ 2,351.4 $ 2,919.6 FAIR VALUE HIERARCHY At December 31, 2016 TARGET LEVEL 1 LEVEL 2 TOTAL MEASURED AT NAV TOTAL Equities: U.S. equities $ 690.8 $ 690.8 Global equities 746.1 746.1 Total equities 50 - 70% 1,436.9 1,436.9 Fixed income: U.S. fixed income $ 195.7 $ 196.9 $ 392.6 $ 317.8 $ 710.4 Non-U.S. fixed income 19.6 19.6 254.5 274.1 Total fixed income 30 - 50% 195.7 216.5 412.2 572.3 984.5 Cash and other 8.8 60.0 68.8 3.9 72.7 Total plan assets $ 204.5 $ 276.5 $ 481.0 $ 2,013.1 $ 2,494.1 The following additional data relates to all pension plans of the Company: At December 31, 2017 2016 Weighted average assumptions: Discount rate 3.3 % 3.7 % Rate of increase in future compensation levels 3.9 % 3.9 % Assumed long-term rate of return on plan assets 6.4 % 6.4 % The components of the change in projected benefit obligation and change in plan assets are as follows: 2017 2016 Change in projected benefit obligation: Benefit obligation at January 1 $ 2,505.6 $ 2,306.0 Service cost 92.9 88.6 Interest cost 81.1 94.3 Benefits paid (82.6 ) (80.2 ) Actuarial loss 154.7 186.4 Currency translation and other 68.6 (90.6 ) Participant contributions .4 1.1 Projected benefit obligation at December 31 $ 2,820.7 $ 2,505.6 Change in plan assets: Fair value of plan assets at January 1 $ 2,494.1 $ 2,219.0 Employer contributions 70.6 185.7 Actual return on plan assets 369.8 254.5 Benefits paid (82.6 ) (80.2 ) Currency translation and other 67.3 (86.0 ) Participant contributions .4 1.1 Fair value of plan assets at December 31 $ 2,919.6 $ 2,494.1 Funded status at December 31 $ 98.9 $ (11.5 ) 2017 2016 Amounts recorded on balance sheet: Other noncurrent assets $ 228.9 $ 107.2 Other liabilities 130.0 118.7 Accumulated other comprehensive loss: Actuarial loss 372.9 410.6 Prior service cost 2.6 3.4 Net initial transition amount .1 .1 Of the December 31, 2017 amounts in accumulated other comprehensive loss, $30.4 of unrecognized actuarial loss and $1.3 of unrecognized prior service cost are expected to be amortized into net pension expense in 2018. The accumulated benefit obligation for all pension plans of the Company was $2,492.4 and $2,215.3 at December 31, 2017 and 2016, respectively. Information for all plans with an accumulated benefit obligation in excess of plan assets is as follows: At December 31, 2017 2016 Projected benefit obligation $ 142.5 $ 110.2 Accumulated benefit obligation 124.0 100.4 Fair value of plan assets 23.5 9.3 The components of pension expense are as follows: Year Ended December 31, 2017 2016 2015 Service cost $ 92.9 $ 88.6 $ 91.3 Interest on projected benefit obligation 81.1 94.3 92.2 Expected return on assets (159.7 ) (141.7 ) (140.8 ) Amortization of prior service costs 1.2 1.2 1.3 Recognized actuarial loss 25.4 27.7 41.1 Curtailment gain (.1 ) Net pension expense $ 40.9 $ 70.1 $ 85.0 On January 1, 2017, the Company changed the method used to estimate service cost and interest cost components of pension expense from a single weighted-average method, which is a single discount rate determined at the pension plans measurement date, to an individual spot rate approach, which applies specific spot rates along the yield curve to the relevant projected cash flows. This approach is a more precise measurement of net periodic benefit costs and does not impact the benefit obligation. The Company considers this a change in estimate inseparable from a change in accounting principle and is being accounted for prospectively. This change lowered net pension expense by approximately Multi-employer Plans: The Company participates in multi-employer plans in the U.S. and Europe. These are typically under collective bargaining agreements and cover its union-represented employees. The Company’s participation in the following multi-employer plans for the years ended December 31 are as follows: PENSION COMPANY CONTRIBUTIONS PENSION PLAN EIN NUMBER 2017 2016 2015 Metal and Electrical Engineering Industry Pension Fund 135668 $ 25.0 $ 23.1 $ 23.0 Western Metal Industry Pension Plan 91-6033499 001 1.4 1.5 2.1 Other plans .8 .7 .9 $ 27.2 $ 25.3 $ 26.0 The Company contributions shown in the table above approximates the multi-employer pension expense for each of the years ended December 31, 2017, 2016 and 2015, respectively. Metal and Electrical Engineering Industry Pension Fund is a multi-employer union plan incorporating all DAF employees in the Netherlands and is covered by a collective bargaining agreement that will expire May 31, 2018. The Company’s contributions were less than 5% of the total contributions to the plan for the last two reporting periods ending December 2017. 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 101.5% at December 31, 2017, 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 as of December 31, 2017, and a funding improvement plan was implemented requiring additional contributions through 2022 as long as the plan remains in critical status. Contributions by the Company were 7% and 8% of the total contributions to the plan for the years ended December 31, 2017 and 2016, respectively. Other plans are principally located in the U.S. For the last two reporting periods, none were under funding improvement plans and Company contributions to these plans are less than 5% of each plan’s total contributions. There were no significant changes for the multi-employer plans in the periods presented that affected comparability between periods. Defined Contribution Plans: The Company maintains several defined contribution benefit plans whereby it contributes designated amounts on behalf of participant employees. The largest plan is for U.S. salaried employees where the Company matches a percentage of employee contributions up to an annual limit. The match was 5% of eligible pay in 2017, 2016 and 2015. Other plans are located in Australia, Brasil, Canada, the Netherlands, Belgium and Germany. Expenses for these plans were $37.9, $34.1 and $36.1 in 2017, 2016 and 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Domestic $ 1,347.8 $ 1,190.7 $ 1,581.6 Foreign 825.5 (60.3 ) 755.5 $ 2,173.3 $ 1,130.4 $ 2,337.1 The components of the Company’s provision for income taxes include the following: Year Ended December 31, 2017 2016 2015 Current provision: Federal $ 397.7 $ 322.9 $ 521.8 State 63.8 41.7 61.1 Foreign 210.5 213.2 205.4 672.0 577.8 788.3 Deferred provision (benefit): Federal (173.8 ) 31.5 (57.8 ) State 2.3 4.8 5.3 Foreign (2.4 ) (5.4 ) (2.7 ) (173.9 ) 30.9 (55.2 ) $ 498.1 $ 608.7 $ 733.1 Tax benefits recognized for net operating loss carryforwards were $4.3, $1.2 and $.6 for the years ended 2017, 2016 and 2015, respectively. A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % Effect of: Rate change on deferred taxes (14.0 ) Transition tax 6.0 Non-deductible EC charge 25.8 State 1.8 2.9 2.1 Federal domestic production deduction (1.1 ) (2.6 ) (1.8 ) Tax on foreign earnings (4.0 ) (7.4 ) (2.7 ) Other, net (.8 ) .1 (1.2 ) 22.9 % 53.8 % 31.4 % On December 22, 2017, the U.S. enacted new federal income tax legislation, the Tax Cuts and Jobs Act (“the Tax Act”). The Act lowered the U.S. statutory income tax rate from 35% to 21%, imposed a one-time transition tax on the Company’s foreign earnings, which previously had been deferred from U.S. income tax and created a modified territorial system. As a result, the Company recorded a provisional amount of $304.0 of deferred tax benefits, due to the re-measurement of net deferred tax liabilities at the new lower statutory tax rate. In addition, the Company recorded a provisional amount of $130.6 of tax expense on the Company’s foreign earnings, which previously had been deferred from U.S. income tax. These provisional amounts may change in 2018, as new information becomes available, as the Tax Act continues to be interpreted and as new technical guidance is issued. The Company will finalize certain tax positions upon filing its 2017 U.S. income tax returns. The Company will then conclude whether the associated provisional amounts require further adjustment. Based on the Company’s current operations, the Company does not expect its future foreign earnings will be subject to significant U.S. federal income tax as a result of the new modified territorial system. As noted above, as of December 31, 2017, the Company has provided a U.S. transition tax of $130.6 on all of the Company’s foreign earnings. Included in domestic taxable income for 2016 and 2015 are At December 31, 2017, the Company had net operating loss carryforwards of $399.4, of which $271.3 related to foreign subsidiaries and $128.1 related to states in the U.S. The related deferred tax asset was $94.6, for which a $78.3 valuation allowance has been provided. The carryforward periods range from three 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, 2017 2016 Assets: Accrued expenses $ 183.9 $ 239.2 Net operating loss and tax credit carryforwards 102.1 84.4 Postretirement benefit plans 11.7 Allowance for losses on receivables 35.6 41.2 Goodwill and intangibles 34.4 1.3 Other 89.2 105.1 445.2 482.9 Valuation allowance (118.6 ) (64.5 ) 326.6 418.4 Liabilities: Financial Services leasing depreciation (608.2 ) (808.7 ) Depreciation and amortization (165.1 ) (246.1 ) Postretirement benefit plans (39.5 ) Other (28.8 ) (35.3 ) (841.6 ) (1,090.1 ) Net deferred tax liability $ (515.0 ) $ (671.7 ) The balance sheets classification of the Company’s deferred tax assets and liabilities are as follows: At December 31, 2017 2016 Truck, Parts and Other: Other noncurrent assets, net $ 71.0 $ 119.5 Other liabilities (1.9 ) (6.3 ) Financial Services: Other assets 45.2 74.6 Deferred taxes and other liabilities (629.3 ) (859.5 ) Net deferred tax liability $ (515.0 ) $ (671.7 ) Cash paid for income taxes was $661.4, $499.4 and $879.7 in 2017, 2016 and 2015, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 2015 Balance at January 1 $ 17.3 $ 19.1 $ 12.0 Additions for tax positions related to the current year 5.6 3.9 10.3 Additions for tax positions related to prior years Reductions for tax positions related to prior years (.3 ) (2.0 ) Reductions related to settlements (5.4 ) Lapse of statute of limitations (1.2 ) Balance at December 31 $ 22.9 $ 17.3 $ 19.1 The Company had $22.9, $17.3 and $19.1 of unrecognized tax benefits, of which $16.8, $13.9 and $9.9 would impact the effective tax rate, if recognized, as of December 31, 2017, 2016 and 2015, respectively. The Company recognized $.2, $1.9 and $1.9 of income related to interest in 2017, 2016 and 2015, respectively. Accrued interest expense and penalties were $1.1, $.9 and $2.8 as of December 31, 2017, 2016 and 2015, respectively. Interest and penalties are classified as income taxes in the Consolidated Statements of Income. The Company believes it is reasonably possible that approximately $1.8 of unrecognized tax benefits, resulting primarily from intercompany transactions, will be resolved within the next twelve months from Competent Authority negotiations between tax authorities of two jurisdictions. The Company does not expect the net impact of these negotiations to be material to its effective tax rate. As of December 31, 2017, the United States Internal Revenue Service has completed examinations of the Company’s tax returns for all years through 2012, with the exception of 2009 which remains subject to examination. The Company’s tax returns for other major jurisdictions remain subject to examination for the years ranging from 2008 through 2017. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | N. STOCKHOLDERS’ EQUITY Accumulated Other Comprehensive Income (Loss): 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 CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION TOTAL Balance at January 1, 2017 $ (4.3 ) $ (.3 ) $ (414.1 ) $ (709.4 ) $ (1,128.1 ) Recorded into AOCI (91.6 ) (1.1 ) 20.4 292.0 219.7 Reclassified out of AOCI 97.1 (.4 ) 18.1 114.8 Net other comprehensive income (loss) 5.5 (1.5 ) 38.5 292.0 334.5 Balance at December 31, 2017 $ 1.2 $ (1.8 ) $ (375.6 ) $ (417.4 ) $ (793.6 ) DERIVATIVE CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION TOTAL Balance at January 1, 2016 $ (6.4 ) $ 2.1 $ (390.4 ) $ (622.3 ) $ (1,017.0 ) Recorded into AOCI .2 .3 (42.6 ) (87.1 ) (129.2 ) Reclassified out of AOCI 1.9 (2.7 ) 18.9 18.1 Net other comprehensive income (loss) 2.1 (2.4 ) (23.7 ) (87.1 ) (111.1 ) Balance at December 31, 2016 $ (4.3 ) $ (.3 ) $ (414.1 ) $ (709.4 ) $ (1,128.1 ) DERIVATIVE CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION 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 ) Reclassifications out of AOCI during the years ended December 31, 2017, 2016 and 2015 are as follows: AMOUNT RECLASSIFIED OUT OF AOCI AOCI COMPONENTS LINE ITEM IN THE CONSOLIDATED STATEMENTS OF INCOME 2017 2016 2015 Unrealized (gains) and losses on derivative contracts: Truck, Parts and Other Foreign-exchange contracts Net sales and revenues $ 12.1 $ (27.9 ) $ (.1 ) Cost of sales and revenues 3.9 .6 3.4 Interest and other expense, net 1.8 1.3 (4.1 ) Financial Services Interest-rate contracts Interest and other borrowing expenses 115.6 36.8 (28.5 ) Pre-tax expense increase (reduction) 133.4 10.8 (29.3 ) Tax (benefit) expense (36.3 ) (8.9 ) 8.5 After-tax expense increase (reduction) 97.1 1.9 (20.8 ) Unrealized (gains) and losses on marketable debt securities: Marketable debt securities Investment income (.6 ) (3.7 ) (2.1 ) Tax expense .2 1.0 .6 After-tax income increase (.4 ) (2.7 ) (1.5 ) Pension plans: Truck, Parts and Other Actuarial loss Cost of sales and revenues 12.3 13.6 22.4 Selling, general and administrative 12.3 13.0 17.1 24.6 26.6 39.5 Prior service costs Cost of sales and revenues 1.0 .9 1.0 Selling, general and administrative .2 .3 .2 1.2 1.2 1.2 Financial Services Actuarial loss Selling, general and administrative .8 1.1 1.7 Pre-tax expense increase 26.6 28.9 42.4 Tax benefit (8.5 ) (10.0 ) (14.8 ) After-tax expense increase 18.1 18.9 27.6 Total reclassifications out of AOCI $ 114.8 $ 18.1 $ 5.3 Other Capital Stock Changes: The Company purchased treasury shares of nil, 1.4 million and 3.8 million in 2017, 2016 and 2015, respectively. The Company retired treasury shares of nil in 2017, 1.4 million in 2016 and 4.6 million in 2015. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | O. DERIVATIVE FINANCIAL INSTRUMENTS As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rate and foreign currency risk. Interest-Rate Contracts: The Company enters into various interest-rate contracts, including interest-rate swaps and cross currency interest-rate swaps. Interest-rate swaps involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency. Cross currency interest-rate swaps involve the exchange of notional amounts and interest payments in different currencies. The Company is exposed to interest-rate and exchange-rate risk caused by market volatility as a result of its borrowing activities. The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings. Net amounts paid or received are reflected as adjustments to interest expense. At December 31, 2017, the notional amount of the Company’s interest-rate contracts was $2,878.4. Notional maturities for all interest-rate contracts are $978.5 for 2018, $911.2 for 2019, $436.9 for 2020, $392.3 for 2021, $126.8 for 2022, and $32.7 thereafter. Foreign-Exchange Contracts: The Company enters into foreign-exchange contracts to hedge certain anticipated transactions and assets and liabilities denominated in foreign currencies, particularly the Canadian dollar, the euro, the British pound, the Australian dollar, the Brazilian real and the Mexican peso. The objective is to reduce fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. At December 31, 2017, the notional amount of the outstanding foreign-exchange contracts was $480.4. Foreign-exchange contracts mature within one year. The following table presents the balance sheet classification, fair value, gross and pro forma net amounts of derivative financial instruments: At December 31, 2017 2016 ASSETS LIABILITIES ASSETS LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets $ 53.3 $ 109.7 Deferred taxes and other liabilities $ 98.3 $ 46.3 Foreign-exchange contracts: Truck, Parts and Other: Other current assets 3.8 3.9 Accounts payable, accrued expenses and other 1.9 1.9 $ 57.1 $ 100.2 $ 113.6 $ 48.2 Economic hedges: Interest-rate contracts: Financial Services: Deferred taxes and other liabilities $ .1 Foreign-exchange contracts: Truck, Parts and Other: Other current assets $ .6 $ .8 Accounts payable, accrued expenses and other $ .6 .3 Financial Services: Other assets .1 4.0 Deferred taxes and other liabilities 2.2 .7 $ .7 $ 2.8 $ 4.8 $ 1.1 Gross amounts recognized in Balance Sheet $ 57.8 $ 103.0 $ 118.4 $ 49.3 Less amounts not offset in financial instruments: Truck, Parts and Other: Foreign-exchange contracts (.4 ) (.4 ) (1.0 ) (1.0 ) Financial Services: Interest-rate contracts (8.7 ) (8.7 ) (15.4 ) (15.4 ) Foreign-exchange contracts (.1 ) (.1 ) Pro forma net amount $ 48.7 $ 93.9 $ 101.9 $ 32.8 Fair Value Hedges: Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with the changes in fair value of the hedged item attributable to the risk being hedged. The (income) or expense recognized in earnings related to fair value hedges was included in interest and other borrowing expenses in the Financial Services segment of the Consolidated Statements of Income as follows: Year Ended December 31, 2017 2016 2015 Interest-rate swaps $ 2.3 $ 5.5 $ (.9 ) Term notes (1.5 ) (6.4 ) .2 Cash Flow Hedges: Substantially all of the Company’s interest-rate contracts and some foreign-exchange contracts have been designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in AOCI to the extent such hedges are considered effective. Amounts in AOCI are reclassified into net income in the same period in which the hedged transaction affects earnings. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 9.6 years. For the periods ended December 31, 2017, 2016 and 2015, the Company recognized no gains or losses on the ineffective portion. The following table presents the pre-tax effects of derivative instruments recognized in other comprehensive income (loss) (OCI): Year Ended December 31, 2017 2016 2015 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- RATE EXCHANGE RATE EXCHANGE RATE EXCHANGE CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS (Loss) gain recognized in OCI: Truck, Parts and Other $ (17.4 ) $ 24.4 $ 4.9 Financial Services $ (108.1 ) $ (30.9 ) $ 33.8 $ (108.1 ) $ (17.4 ) $ (30.9 ) $ 24.4 $ 33.8 $ 4.9 Expense (income) reclassified out of AOCI into income was as follows: Year Ended December 31, 2017 2016 2015 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- RATE EXCHANGE RATE EXCHANGE RATE EXCHANGE CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS Truck, Parts and Other: Net sales and revenues $ 12.1 $ (27.9 ) $ (.1 ) Cost of sales and revenues 3.9 .6 3.4 Interest and other expense, net 1.8 1.3 (4.1 ) Financial Services: Interest and other borrowing expenses $ 115.6 $ 36.8 $ (28.5 ) $ 115.6 $ 17.8 $ 36.8 $ (26.0 ) $ (28.5 ) $ (.8 ) The amount of gain recorded in AOCI at December 31, 2017 that is estimated to be reclassified into earnings in the following 12 months if interest rates and exchange rates remain unchanged is approximately $3.7, 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 year ended December 31, 2017, a loss of $.3 for the year ended December 31, 2016 and nil Economic Hedges: For other risk management purposes, the Company enters into derivative instruments that do not qualify for hedge accounting. These derivative instruments are used to mitigate the risk of market volatility arising from borrowings and foreign currency denominated transactions. Changes in the fair value of economic hedges are recorded in earnings in the period in which the change occurs. The expense (income) recognized in earnings related to economic hedges was as follows: Year Ended December 31, 2017 2016 2015 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- RATE EXCHANGE RATE EXCHANGE RATE EXCHANGE CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS Truck, Parts and Other: Net sales and revenues $ (.4 ) Cost of sales and revenues $ .3 .4 $ (.7 ) Interest and other expense, net 2.1 14.9 3.0 Financial Services: Interest and other borrowing expenses $ (.1 ) 49.1 $ .1 (28.4 ) (7.6 ) Selling, general and administrative .5 1.8 (2.3 ) $ (.1 ) $ 52.0 $ .1 $ (11.7 ) $ (7.6 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017. The Company’s policy is to recognize transfers between levels at the end of the reporting period. The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements. Marketable Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1. The fair value of U.S. government agency obligations, non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2. Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps and foreign currency exchange contracts. These derivative contracts are traded over the counter and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads and forward rates and are categorized as Level 2. Assets and Liabilities Subject to Recurring Fair Value Measurement The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows: At December 31, 2017 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 535.5 $ 535.5 U.S. corporate securities 89.7 89.7 U.S. government and agency securities $ 48.7 48.7 Non-U.S. corporate securities 459.3 459.3 Non-U.S. government securities 91.7 91.7 Other debt securities 142.2 142.2 Total marketable debt securities $ 48.7 $ 1,318.4 $ 1,367.1 Derivatives Cross currency swaps $ 44.2 $ 44.2 Interest-rate swaps 9.1 9.1 Foreign-exchange contracts 4.5 4.5 Total derivative assets $ 57.8 $ 57.8 Liabilities: Derivatives Cross currency swaps $ 93.0 $ 93.0 Interest-rate swaps 5.3 5.3 Foreign-exchange contracts 4.7 4.7 Total derivative liabilities $ 103.0 $ 103.0 At December 31, 2016 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 595.0 $ 595.0 U.S. corporate securities 47.8 47.8 U.S. government and agency securities $ 15.4 .6 16.0 Non-U.S. corporate securities 308.0 308.0 Non-U.S. government securities 98.2 98.2 Other debt securities 75.9 75.9 Total marketable debt securities $ 15.4 $ 1,125.5 $ 1,140.9 Derivatives Cross currency swaps $ 102.7 $ 102.7 Interest-rate swaps 7.0 7.0 Foreign-exchange contracts 8.7 8.7 Total derivative assets $ 118.4 $ 118.4 Liabilities: Derivatives Cross currency swaps $ 37.1 $ 37.1 Interest-rate swaps 9.3 9.3 Foreign-exchange contracts 2.9 2.9 Total derivative liabilities $ 49.3 $ 49.3 Fair Value Disclosure of Other Financial Instruments For financial instruments that are not recognized at fair value, the Company uses the following methods and assumptions to determine the fair value. These instruments are categorized as Level 2, except cash which is categorized as Level 1 and fixed rate loans which are categorized as Level 3. Cash and Cash Equivalents: Carrying amounts approximate fair value. Financial Services Net Receivables: For floating-rate loans, wholesale financing, and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable loans. Finance lease receivables and related allowance for credit losses have been excluded from the accompanying table. Debt: The carrying amounts of financial services commercial paper, variable rate bank loans and variable rate term notes approximate fair value. For fixed rate debt, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable debt. The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows: At December 31, 2017 2016 CARRYING FAIR CARRYING FAIR AMOUNT VALUE AMOUNT VALUE Assets: Financial Services fixed rate loans $ 3,793.8 $ 3,804.8 $ 3,607.4 $ 3,638.4 Liabilities: Financial Services fixed rate debt 5,397.6 5,387.0 4,915.2 4,929.3 |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation Plans | Q. STOCK COMPENSATION PLANS PACCAR has certain plans under which officers and key employees may be granted options to purchase shares of the Company’s authorized but unissued common stock under plans approved by stockholders. Non‑employee directors and certain officers may be granted restricted shares of the Company’s common stock under plans approved by stockholders. Options outstanding under these plans were granted with exercise prices equal to the fair market value of the Company’s common stock at the date of grant. Options expire no later than ten years from the grant date and generally vest after three years. Restricted stock awards generally vest over three years or earlier upon meeting certain age and service requirements. The Company recognizes compensation cost on these options and restricted stock awards on a straight-line basis over the requisite period the employee is required to render service less estimated forfeitures based on historical experience. 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, 2017, the maximum number of shares available for future grants was 14.0 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. 2017 2016 2015 Risk-free interest rate 1.97 % 1.37 % 1.35 % Expected volatility 23 % 26 % 28 % Expected dividend yield 3.1 % 4.0 % 3.4 % Expected term 5 years 5 years 5 years Weighted average grant date fair value of options per share $ 10.56 $ 7.51 $ 10.98 The fair value of options granted was $6.4, $6.0 and $6.3 for the years ended December 31, 2017, 2016 and 2015, respectively. The fair value of options vested during the years ended December 31, 2017, 2016 and 2015 was $5.2, $7.8 and $9.5, respectively. A summary of activity under the Company’s stock plans is presented below: 2017 2016 2015 Intrinsic value of options exercised $ 22.0 $ 10.4 $ 14.1 Cash received from stock option exercises 40.0 29.4 21.8 Tax benefit related to stock award exercises 4.9 1.0 3.5 Stock based compensation 12.7 13.1 14.6 Tax benefit related to stock based compensation 4.6 4.7 5.1 The summary of options as of December 31, 2017 and changes during the year then ended are presented below: PER SHARE REMAINING AGGREGATE NUMBER EXERCISE CONTRACTUAL INTRINSIC OF SHARES PRICE* LIFE IN YEARS* VALUE Options outstanding at January 1 4,466,900 $ 48.15 Granted 605,300 67.63 Exercised (895,100 ) 44.74 Cancelled (120,900 ) 56.28 Options outstanding at December 31 4,056,200 $ 51.57 5.73 $ 79.1 Vested and expected to vest 3,949,100 $ 51.31 5.65 $ 78.1 Exercisable 2,295,200 $ 45.79 3.84 $ 58.0 * 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, 2017 and changes during the year then ended is presented below: NUMBER GRANT DATE NONVESTED SHARES OF SHARES FAIR VALUE* Nonvested awards outstanding at January 1 198,400 $ 55.27 Granted 119,200 67.48 Vested (105,900 ) 59.24 Nonvested awards outstanding at December 31 211,700 $ 60.16 * Weighted Average As of December 31, 2017, there was $5.5 of total unrecognized compensation cost related to nonvested stock options, which is recognized over a remaining weighted average vesting period of 1.45 years. Unrecognized compensation cost related to nonvested restricted stock awards of $1.9 is expected to be recognized over a remaining weighted average vesting period of 1.31 years. The dilutive and antidilutive options are shown separately in the table below: Year Ended December 31, 2017 2016 2015 Additional shares 1,038,400 694,700 906,100 Antidilutive options 696,400 1,943,500 1,180,400 |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2017 | |
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, the EC charge, and income taxes. The Financial Services segment’s performance is evaluated based on income before income taxes. Geographic revenues from external customers are presented based on the country of the customer. The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A. Truck and Parts: The Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks and the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles, both of which are sold through the same network of independent dealers. These segments derive a large proportion of their revenues and operating profits from operations in North America and Europe. The Truck segment incurs substantial costs to design, manufacture and sell trucks to its customers. The sale of new trucks provides the Parts segment with the basis for parts sales that may continue over the life of the truck, but are generally concentrated in the first five years after truck delivery. To reflect the benefit the Parts segment receives from costs incurred by the Truck segment, certain expenses are allocated from the Truck segment to the Parts segment. The expenses allocated are based on a percentage of the average annual expenses for factory overhead, engineering, research and development and SG&A expenses for the preceding five years. The allocation is based on the ratio of the average parts direct margin dollars (net sales less material and labor costs) to the total truck and parts direct margin dollars for the previous five years. The Company believes such expenses have been allocated on a reasonable basis. Truck segment assets related to the indirect expense allocation are not allocated to the Parts segment. Financial Services: The Financial Services segment derives its earnings primarily from financing or leasing of PACCAR products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe. Other: Included in Other is the Company’s industrial winch manufacturing business. Also within this category are other sales, income and expense not attributable to a reportable segment, including the EC charge and a portion of corporate expenses. Intercompany interest income on cash advances to the financial services companies is included in Other and was nil, $.4 and $.5 for 2017, 2016 and 2015, respectively. Geographic Area Data 2017 2016 2015 Net sales and revenues: United States $ 10,530.1 $ 9,221.3 $ 11,408.3 Europe 5,354.6 4,903.3 4,515.9 Other 3,571.7 2,908.7 3,190.9 $ 19,456.4 $ 17,033.3 $ 19,115.1 Property, plant and equipment, net: United States $ 1,238.1 $ 1,187.0 $ 1,140.5 The Netherlands 464.5 406.7 438.7 Other 761.8 666.3 597.2 $ 2,464.4 $ 2,260.0 $ 2,176.4 Equipment on operating leases, net: United States $ 1,530.8 $ 1,458.0 $ 1,287.9 Germany 385.1 318.3 321.9 United Kingdom 343.1 309.7 321.3 Mexico 316.1 304.8 330.0 Other 1,566.9 1,247.0 1,111.9 $ 4,142.0 $ 3,637.8 $ 3,373.0 Business Segment Data 2017 2016 2015 Net sales and revenues: Truck $ 15,543.7 $ 13,652.7 $ 15,568.6 Less intersegment (768.9 ) (885.4 ) (786.1 ) External customers 14,774.8 12,767.3 14,782.5 Parts 3,380.2 3,052.9 3,104.7 Less intersegment (53.2 ) (47.2 ) (44.6 ) External customers 3,327.0 3,005.7 3,060.1 Other 85.7 73.6 100.2 18,187.5 15,846.6 17,942.8 Financial Services 1,268.9 1,186.7 1,172.3 $ 19,456.4 $ 17,033.3 $ 19,115.1 Income before income taxes: Truck $ 1,296.9 $ 1,125.8 $ 1,440.3 Parts 614.2 543.8 555.6 Other* (37.1 ) (873.3 ) (43.2 ) 1,874.0 796.3 1,952.7 Financial Services 264.0 306.5 362.6 Investment income 35.3 27.6 21.8 $ 2,173.3 $ 1,130.4 $ 2,337.1 Depreciation and amortization: Truck $ 468.2 $ 432.8 $ 399.8 Parts 8.1 7.3 6.2 Other 18.1 15.8 14.9 494.4 455.9 420.9 Financial Services 613.1 537.2 486.2 $ 1,107.5 $ 993.1 $ 907.1 Expenditures for long-lived assets: Truck $ 769.7 $ 735.6 $ 660.0 Parts 23.4 16.9 24.9 Other 54.0 25.5 17.7 847.1 778.0 702.6 Financial Services 1,008.0 1,214.4 1,044.4 $ 1,855.1 $ 1,992.4 $ 1,747.0 Segment assets: Truck $ 5,159.7 $ 4,429.4 $ 4,472.3 Parts 950.7 805.1 793.3 Other 505.6 287.0 211.6 Cash and marketable securities 3,621.9 2,922.6 3,378.0 10,237.9 8,444.1 8,855.2 Financial Services 13,202.3 12,194.8 12,254.6 $ 23,440.2 $ 20,638.9 $ 21,109.8 * Other includes the $833.0 European Commission charge in 2016. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | quarterly results (unaudited) QUARTER FIRST SECOND THIRD FOURTH (millions except per share data) 2017 Truck, Parts and Other: Net sales and revenues $ 3,935.7 $ 4,397.9 $ 4,731.5 $ 5,122.4 Cost of sales and revenues 3,382.2 3,755.2 4,046.8 4,409.5 Research and development 61.0 66.1 67.0 70.6 Financial Services: Revenues 302.2 306.3 328.2 332.2 Interest and other borrowing expenses 34.1 37.4 38.3 39.8 Depreciation and other expenses 179.7 172.8 186.2 188.8 Net Income 310.3 373.0 402.7 589.2 Adjusted Net Income * 415.8 Net Income Per Share: ** Basic $ .88 $ 1.06 $ 1.14 $ 1.67 Diluted .88 1.06 1.14 1.67 Adjusted Diluted * 1.18 2016 Truck, Parts and Other: Net sales and revenues $ 4,010.6 $ 4,115.8 $ 3,953.2 $ 3,767.0 Cost of sales and revenues 3,413.6 3,489.4 3,371.5 3,243.2 Research and development 59.6 60.8 59.2 67.6 European Commission charge 942.6 (109.6 ) Financial Services: Revenues 289.4 297.4 296.2 303.7 Interest and other borrowing expenses 30.3 32.6 32.2 32.1 Depreciation and other expenses 150.9 156.4 162.6 165.3 Net (Loss) Income (594.6 ) 481.3 346.2 288.8 Adjusted Net Income * 348.0 371.7 Net (Loss) Income Per Share: Basic $ (1.69 ) $ 1.37 $ .99 $ .82 Diluted (1.69 ) 1.37 .98 .82 Adjusted Diluted * .99 1.06 * See Reconciliation of GAAP to Non-GAAP Financial Measures for 2017 and 2016 on page 33. ** The sum of quarterly per share amounts may not equal per share amounts reported for year-to-date periods. This is due to changes in the number of weighted shares outstanding and the effects of rounding for each period. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Operations | Description of Operations: PACCAR Inc (the Company or PACCAR) is a multinational company operating in three principal segments: (1) the Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks; (2) the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles; and (3) the Financial Services segment (PFS) includes finance and leasing products and services provided to customers and dealers. PACCAR’s finance and leasing activities are principally related to PACCAR products and associated equipment. PACCAR’s sales and revenues are derived primarily from North America and Europe. The Company also operates in Australia and Brasil and sells trucks and parts to customers in Asia, Africa, Middle East and South America. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition: Truck, Parts and Other: Substantially all sales and revenues of trucks and related aftermarket parts are recorded by the Company when products are shipped to dealers or customers, except for certain truck shipments that are subject to a residual value guarantee to the customer. Revenues related to these shipments are generally recognized on a straight-line basis over the guarantee period (see Note E). At the time certain truck and parts sales to a dealer are recognized, the Company records an estimate of any future sales incentive costs related to such sales. The estimate is based on historical data and announced incentive programs. In the Truck and Parts segments, the Company grants extended payment terms on selected receivables. Interest is charged for the period beyond standard payment terms. Interest income is recorded as earned. Financial Services: Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts, generally 36 to 60 months, using the straight-line method which approximates the interest method. For operating leases, rental revenue is recognized on a straight-line basis over the lease term. Rental revenues for the years ended December 31, 2017, 2016 and 2015 were $760.9, $698.9 and $668.6, respectively. Depreciation and related leased unit operating expenses were $665.7, $581.7 and $536.2 for the years ended December 31, 2017, 2016 and 2015, respectively. Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at December 31, 2017 or December 31, 2016. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash equivalents consist of liquid investments with a maturity at date of purchase of 90 days or less. |
Marketable Debt Securities | Marketable Debt Securities: The Company's investments in marketable debt securities are classified as available-for-sale. These investments are stated at fair value with any unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive income (loss) (AOCI). The Company utilizes third-party pricing services for all of its marketable debt security valuations. The Company reviews the pricing methodology used by the third‑party pricing services, including the manner employed to collect market information. On a quarterly basis, the Company also performs review and validation procedures on the pricing information received from the third‑party providers. These procedures help ensure that the fair value information used by the Company is determined in accordance with applicable accounting guidance. The Company evaluates its investment in marketable debt securities at the end of each reporting period to determine if a decline in fair value is other-than-temporary. Realized losses are recognized upon management’s determination that a decline in fair value is other-than-temporary. The determination of other-than-temporary impairment is a subjective process, requiring the use of judgments and assumptions regarding the amount and timing of recovery. The Company reviews and evaluates its investments at least quarterly to identify investments that have indications of other-than-temporary impairments. It is reasonably possible that a change in estimate could occur in the near term relating to other-than-temporary impairment. Accordingly, the Company considers several factors when evaluating debt securities for other-than-temporary impairment, including whether the decline in fair value of the security is due to increased default risk for the specific issuer or market interest rate risk. In assessing default risk, the Company considers the collectability of principal and interest payments by monitoring changes to issuers’ credit ratings, specific credit events associated with individual issuers as well as the credit ratings of any financial guarantor, and the extent and duration to which amortized cost exceeds fair value. In assessing market interest rate risk, including benchmark interest rates and credit spreads, the Company considers its intent for selling the securities and whether it is more likely than not the Company will be able to hold these securities until the recovery of any unrealized losses. |
Receivables | Receivables: Trade and Other Receivables: The Company’s trade and other receivables are recorded at cost, net of allowances. At December 31, 2017 and 2016, respectively, trade and other receivables include trade receivables from dealers and customers of $962.0 and $734.6 and other receivables of $165.9 and $127.6 relating primarily to value added tax receivables and supplier allowances and rebates. Finance and Other Receivables: Loans – Loans represent fixed or floating-rate loans to customers collateralized by the vehicles purchased and are recorded at amortized cost. Finance leases – Finance leases are retail direct financing leases and sales-type finance leases, which lease equipment to retail customers and dealers. These leases are reported as the sum of minimum lease payments receivable and estimated residual value of the property subject to the contracts, reduced by unearned interest which is shown separately. Dealer wholesale financing – Dealer wholesale financing is floating-rate wholesale loans to PACCAR dealers for new and used trucks and are recorded at amortized cost. The loans are collateralized by the trucks being financed. Operating lease receivables and other – Operating lease receivables and other include monthly rentals due on operating leases, unamortized loan and lease origination costs, interest on loans and other amounts due within one year in the normal course of business. |
Allowance for Credit Losses | Allowance for Credit Losses: Truck, Parts and Other: The Company historically has not experienced significant losses or past due amounts on trade and other receivables in its Truck, Parts and Other businesses. Accounts are considered past due once the unpaid balance is over 30 days outstanding based on contractual payment terms. Accounts are charged-off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible. The allowance for credit losses for Truck, Parts and Other was $1.5 and $1.7 for the years ended December 31, 2017 and 2016, respectively. Net charge-offs were $.1, $.1 and $.3 for the years ended December 31, 2017, 2016 and 2015, respectively. Financial Services: The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list. The Company modifies loans and finance leases 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 ths 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 three to five years, 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 sold individually, which is the lowest unit of account, 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: Inventories are stated at the lower of cost or market. Cost of inventories in the U.S. is determined principally by the last‑in, first-out (LIFO) method. Cost of all other inventories is determined principally by the first-in, first-out (FIFO) method. Cost of sales and revenues include shipping and handling costs incurred to deliver products to dealers and customers. |
Equipment on Operating Leases | Equipment on Operating Leases: The Company’s Financial Services segment leases equipment under operating leases to its customers. In addition, in the Truck segment, equipment sold to customers in Europe subject to a residual value guarantee (RVG) by the Company is generally accounted for as an operating lease. Equipment is recorded at cost and is depreciated on the straight-line basis to the lower of the estimated residual value or guarantee value. Lease and guarantee periods generally range from two to five years. Estimated useful lives of the equipment range from four to nine years. The Company reviews residual values of equipment on operating leases periodically to determine that recorded amounts are appropriate. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost. Depreciation is computed principally by the straight-line method based on the estimated useful lives of the various classes of assets. Certain production tooling is amortized on a unit of production basis. |
Long-lived Assets and Goodwill | Long-lived Assets and Goodwill: The Company evaluates the carrying value of property, plant and equipment when events and circumstances warrant a review. Goodwill is tested for impairment at least on an annual basis. There were no significant impairment charges for the three years ended December 31, 2017. Goodwill was $117.4 and $103.0 at December 31, 2017 and 2016, respectively. The increase in value was mostly due to currency translation. |
Product Support Liabilities | Product Support Liabilities: Product support liabilities include estimated future payments related to product warranties and deferred revenues on optional extended warranties and repair and maintenance (R&M) contracts. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical data regarding the source, frequency and cost of claims, net of any recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred. |
Derivative Financial Instruments | Derivative Financial Instruments: As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rates and foreign currency risk. Certain derivative instruments designated as either cash flow hedges or fair value hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as economic hedges. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate and certain foreign-exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral. Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its swap counterparties is limited to the asset position of its swap portfolio. The asset position of the Company’s swap portfolio is $53.3 at December 31, 2017. 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 in current earnings. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. |
Foreign Currency Translation | Foreign Currency Translation: For most of the Company’s foreign subsidiaries, the local currency is the functional currency. All assets and liabilities are translated at year-end exchange rates and all income statement amounts are translated at the weighted average rates for the period. Translation adjustments are recorded in AOCI. The Company uses the U.S. dollar as the functional currency for all but one of its Mexican subsidiaries, which uses the local currency. For the U.S. functional currency entities in Mexico, inventories, cost of sales, property, plant and equipment and depreciation are remeasured at historical rates and resulting adjustments are included in net income. |
Earnings per Share | Earnings per Share: Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding, plus the effect of any participating securities. Diluted earnings per common share are computed assuming that all potentially dilutive securities are converted into common shares under the treasury stock method. |
New Accounting Pronouncements | New Accounting Pronouncements: In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02 Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendment requires a reclassification from accumulated other comprehensive income (AOCI) to retained earnings the difference between the historical corporate income tax rate and the newly enacted income tax rate resulting from the Tax Act. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. Upon adoption, the Company estimates Retained earnings will increase and AOCI will decrease approximately $40 million with no impact to Stockholders’ Equity. The Company expects to early adopt this ASU in 2018. In March 2017, FASB issued ASU 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The most significant effect of the standard relates to trucks sold in Europe that are subject to a residual value guarantee (RVG) and are currently accounted for as an operating lease in the Truck, Parts and Other section of the Company’s Consolidated Balance Sheets (see Note E). Under the new standard, revenues will be recognized immediately for certain of these RVG contracts that allow customers the option to return their truck and for which there is no economic incentive to do so. The Company expects the overall effects on revenues to not be significant, as the increase in revenues from immediate recognition will largely be offset by reduced amortization of RVG revenue that had been deferred under the prior standard. Upon adoption of the new standard, total RVG assets will decrease by approximately $497 million and the related liability will decrease by approximately $520 million. The cumulative effect adjustment will increase Retained earnings by approximately $17 million, net of tax. Also as required by the new standard, the Company will recognize an asset for the value of expected returned aftermarket parts which had previously been netted with the related liabilities. The new standard also requires new and expanded footnote disclosures. In addition to ASU 2016-16 disclosed above, the Company adopted the following standards effective January 1, 2017, none of which had a material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION 2017-04 * Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. 2016-09 ** Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. 2015-11 ** Inventory (Topic 330): Simplifying the Measurement of Inventory. * The Company early adopted in 2017. ** The Company adopted on the effective date of January 1, 2017. The FASB also issued the following standards, which are not expected to have a material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION EFFECTIVE DATE 2016-01 * Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. January 1, 2018 2016-15 * Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. January 1, 2018 2017-12 ** Derivative and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. January 1, 2019 * The Company will adopt on the effective date. ** The Company expects to early adopt on January 1, 2018. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Fair Value Measurement Policy | 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, 2017. The Company’s policy is to recognize transfers between levels at the end of the reporting period. The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements. Marketable Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1. The fair value of U.S. government agency obligations, non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2. Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps and foreign currency exchange contracts. These derivative contracts are traded over the counter and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads and forward rates and are categorized as Level 2. |
Investments in Marketable Deb30
Investments in Marketable Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Debt Securities | Marketable debt securities consisted of the following at December 31: AMORTIZED UNREALIZED UNREALIZED FAIR 2017 COST GAINS LOSSES VALUE U.S. tax-exempt securities $ 537.9 $ 2.4 $ 535.5 U.S. corporate securities 89.7 $ .2 .2 89.7 U.S. government and agency securities 48.9 .2 48.7 Non-U.S. corporate securities 459.4 1.3 1.4 459.3 Non-U.S. government securities 91.5 .3 .1 91.7 Other debt securities 142.8 .1 .7 142.2 $ 1,370.2 $ 1.9 $ 5.0 $ 1,367.1 AMORTIZED UNREALIZED UNREALIZED FAIR 2016 COST GAINS LOSSES VALUE U.S. tax-exempt securities $ 597.9 $ .2 $ 3.1 $ 595.0 U.S. corporate securities 47.6 .2 47.8 U.S. government and agency securities 16.0 16.0 Non-U.S. corporate securities 306.9 1.5 .4 308.0 Non-U.S. government securities 97.6 .6 98.2 Other debt securities 75.9 .2 .2 75.9 $ 1,141.9 $ 2.7 $ 3.7 $ 1,140.9 |
Marketable Debt Securities Continuous Unrealized Losses | Marketable debt securities with continuous unrealized losses and their related fair values were as follows: At December 31, 2017 2016 LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER Fair value $ 908.5 $ 18.4 $ 615.5 Unrealized losses 4.8 .2 3.7 |
Contractual Maturities of Debt Securities | Contractual maturities on marketable debt securities at December 31, 2017 AMORTIZED FAIR Maturities: COST VALUE Within one year $ 413.7 $ 413.3 One to five years 939.6 936.9 More than ten years 16.9 16.9 $ 1,370.2 $ 1,367.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories Table | Inventories include the following: At December 31, 2017 2016 Finished products $ 515.7 $ 452.3 Work in process and raw materials 586.2 444.7 1,101.9 897.0 Less LIFO reserve (173.5 ) (169.2 ) $ 928.4 $ 727.8 |
Finance and Other Receivables (
Finance and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Finance and Other Receivables | Finance and other receivables include the following: At December 31, 2017 2016 Loans $ 4,147.8 $ 3,948.6 Direct financing leases 3,211.7 2,798.0 Sales-type finance leases 781.1 867.3 Dealer wholesale financing 1,880.6 1,528.5 Operating lease receivables and other 161.1 150.9 Unearned interest: Finance leases (368.0 ) (344.7 ) $ 9,814.3 $ 8,948.6 Less allowance for losses: Loans and leases (101.9 ) (97.1 ) Dealer wholesale financing (6.0 ) (5.5 ) Operating lease receivables and other (9.3 ) (8.6 ) $ 9,697.1 $ 8,837.4 |
Annual Minimum Payments Due on Finance Receivables | Annual minimum payments due on finance receivables are as follows: FINANCE Beginning January 1, 2018 LOANS LEASES 2018 $ 1,351.5 $ 1,226.7 2019 1,088.1 959.6 2020 857.2 716.6 2021 542.0 440.6 2022 242.9 217.8 Thereafter 66.1 90.6 $ 4,147.8 $ 3,651.9 |
Allowance for Credit Losses | Allowance for Credit Losses: The allowance for credit losses is summarized as follows: 2017 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 5.5 $ 9.6 $ 87.5 $ 8.6 $ 111.2 Provision for losses (.3 ) 21.1 1.5 22.3 Charge-offs (24.8 ) (1.9 ) (26.7 ) Recoveries 5.0 .3 5.3 Currency translation and other .5 .1 3.7 .8 5.1 Balance at December 31 $ 6.0 $ 9.4 $ 92.5 $ 9.3 $ 117.2 2016 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 7.3 $ 10.3 $ 88.9 $ 8.3 $ 114.8 Provision for losses (1.7 ) (.7 ) 18.6 2.2 18.4 Charge-offs (22.9 ) (2.1 ) (25.0 ) Recoveries 5.5 .3 5.8 Currency translation and other (.1 ) (2.6 ) (.1 ) (2.8 ) Balance at December 31 $ 5.5 $ 9.6 $ 87.5 $ 8.6 $ 111.2 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 * Operating lease and other trade receivables. |
Finance Receivable Evaluated and Determined Individually and Collectively | Information regarding finance receivables evaluated and determined individually and collectively is as follows: DEALER CUSTOMER At December 31, 2017 WHOLESALE RETAIL RETAIL TOTAL Recorded investment for impaired finance receivables evaluated individually $ .1 $ 4.0 $ 50.8 $ 54.9 Allowance for impaired finance receivables determined individually .1 6.6 6.7 Recorded investment for finance receivables evaluated collectively 1,880.5 1,354.7 6,363.1 9,598.3 Allowance for finance receivables determined collectively 5.9 9.4 85.9 101.2 DEALER CUSTOMER At December 31, 2016 WHOLESALE RETAIL RETAIL TOTAL Recorded investment for impaired finance receivables evaluated individually $ .1 $ 57.3 $ 57.4 Allowance for impaired finance receivables determined individually .1 4.9 5.0 Recorded investment for finance receivables evaluated collectively 1,528.4 $ 1,406.0 5,805.9 8,740.3 Allowance for finance receivables determined collectively 5.4 9.6 82.6 97.6 |
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, 2017 2016 Dealer: Wholesale $ .1 $ .1 Customer retail: Fleet 44.4 49.5 Owner/operator 6.0 6.9 $ 50.5 $ 56.5 |
Impaired Loans and Specific Reserve | The recorded investment of impaired loans as of December 31, 2017 and December 31, 2016 was not significantly different than the unpaid principal balance. DEALER CUSTOMER RETAIL At December 31, 2017 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Impaired loans with a specific reserve $ .1 $ 18.8 $ 1.0 $ 19.9 Associated allowance (.1 ) (3.0 ) (.2 ) (3.3 ) $ 15.8 $ .8 $ 16.6 Impaired loans with no specific reserve $ 3.9 13.1 .2 17.2 Net carrying amount of impaired loans $ 3.9 $ 28.9 $ 1.0 $ 33.8 Average recorded investment $ .1 $ 4.0 $ 31.3 $ 1.8 $ 37.2 DEALER CUSTOMER RETAIL At December 31, 2016 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Impaired loans with a specific reserve $ .1 $ 18.9 $ 1.8 $ 20.8 Associated allowance (.1 ) (2.8 ) (.3 ) (3.2 ) $ 16.1 $ 1.5 $ 17.6 Impaired loans with no specific reserve 10.8 .2 11.0 Net carrying amount of impaired loans $ 26.9 $ 1.7 $ 28.6 Average recorded investment $ 2.8 $ 28.0 $ 2.4 $ 33.2 |
Interest Income Recognized on Cash Basis | During the period the loans above were considered impaired, interest income recognized on a cash basis was as follows: 2017 2016 2015 Interest income recognized: Customer retail - fleet $ 1.6 $ 1.1 $ 1.4 Customer retail - owner/operator .1 .4 .4 $ 1.7 $ 1.5 $ 1.8 |
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, 2017 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Performing $ 1,874.5 $ 1,354.7 $ 5,290.3 $ 1,005.2 $ 9,524.7 Watch 6.0 62.9 4.7 73.6 At-risk .1 4.0 44.7 6.1 54.9 $ 1,880.6 $ 1,358.7 $ 5,397.9 $ 1,016.0 $ 9,653.2 DEALER CUSTOMER RETAIL At December 31, 2016 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Performing $ 1,519.3 $ 1,406.0 $ 4,863.4 $ 922.1 $ 8,710.8 Watch 9.1 14.9 5.5 29.5 At-risk .1 50.4 6.9 57.4 $ 1,528.5 $ 1,406.0 $ 4,928.7 $ 934.5 $ 8,797.7 |
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, 2017 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Current and up to 30 days past due $ 1,880.5 $ 1,358.7 $ 5,365.7 $ 1,007.4 $ 9,612.3 31 – 60 days past due 14.7 4.0 18.7 Greater than 60 days past due .1 17.5 4.6 22.2 $ 1,880.6 $ 1,358.7 $ 5,397.9 $ 1,016.0 $ 9,653.2 DEALER CUSTOMER RETAIL At December 31, 2016 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Current and up to 30 days past due $ 1,528.4 $ 1,406.0 $ 4,898.4 $ 926.4 $ 8,759.2 31 – 60 days past due 12.6 3.9 16.5 Greater than 60 days past due .1 17.7 4.2 22.0 $ 1,528.5 $ 1,406.0 $ 4,928.7 $ 934.5 $ 8,797.7 |
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: 2017 2016 RECORDED INVESTMENT RECORDED INVESTMENT PRE-MODIFICATION POST-MODIFICATION PRE-MODIFICATION POST-MODIFICATION Fleet $ 19.9 $ 19.9 $ 27.2 $ 27.2 Owner/operator .6 .6 4.4 4.4 $ 20.5 $ 20.5 $ 31.6 $ 31.6 |
TDRs Modified that Subsequently Defaulted (i.e., Became More than 30 Days Past-Due) by Portfolio Class | TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past due) in the year ended by portfolio class are as follows: 2017 2016 Fleet $ 4.7 $ .3 Owner/operator .2 .4 $ 4.9 $ .7 |
Equipment On Operating Leases (
Equipment On Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2017 2016 Equipment on operating leases $ 1,615.5 $ 1,282.3 $ 4,066.3 $ 3,640.6 Less allowance for depreciation (349.8 ) (268.4 ) (1,190.0 ) (1,016.7 ) $ 1,265.7 $ 1,013.9 $ 2,876.3 $ 2,623.9 |
Residual Value Obligation and Deferred Lease Revenue | These amounts are summarized below: TRUCK, PARTS AND OTHER At December 31, 2017 2016 Residual value guarantees $ 909.8 $ 699.2 Deferred lease revenues 429.2 373.4 $ 1,339.0 $ 1,072.6 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant And Equipment | Property, plant and equipment include the following: At December 31, USEFUL LIVES 2017 2016 Land $ 263.3 $ 221.2 Buildings and improvements 10 - 40 years 1,315.1 1,134.1 Machinery, equipment and production tooling 3 - 12 years 3,782.1 3,285.2 Construction in progress 253.8 352.8 5,614.3 4,993.3 Less allowance for depreciation (3,149.9 ) (2,733.3 ) $ 2,464.4 $ 2,260.0 |
Accounts Payable, Accrued Exp35
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other | Accounts payable, accrued expenses and other include the following: At December 31, 2017 2016 Truck, Parts and Other: Accounts payable $ 1,154.7 $ 938.6 Product support liabilities 372.1 344.2 Accrued expenses 401.4 233.1 Accrued capital expenditures 120.1 111.2 Salaries and wages 238.9 194.8 Other 282.3 212.2 $ 2,569.5 $ 2,034.1 |
Product Support Liabilities (Ta
Product Support Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Changes in Product Support Liabilities, Warranty Reserves | WARRANTY RESERVES 2017 2016 2015 Balance at January 1 $ 282.1 $ 346.2 $ 310.8 Cost accruals 242.1 211.9 294.8 Payments (236.8 ) (255.7 ) (228.8 ) Change in estimates for pre-existing warranties (2.0 ) (7.3 ) (21.3 ) Currency translation 13.4 (13.0 ) (9.3 ) Balance at December 31 $ 298.8 $ 282.1 $ 346.2 |
Changes in Product Support Liabilities, Deferred Revenues on Extended Warranties and R&M Contracts | DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS 2017 2016 2015 Balance at January 1 $ 573.5 $ 524.8 $ 462.0 Deferred revenues 371.8 347.6 333.0 Revenues recognized (328.2 ) (274.3 ) (248.4 ) Currency translation 36.8 (24.6 ) (21.8 ) Balance at December 31 $ 653.9 $ 573.5 $ 524.8 |
Product Support Liabilities | Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: WARRANTY RESERVES DEFERRED REVENUES At December 31, 2017 2016 2017 2016 Truck, Parts and Other: Accounts payable, accrued expenses and other $ 176.0 $ 181.4 $ 196.1 $ 162.8 Other liabilities 122.8 100.7 441.0 395.7 Financial Services: Deferred taxes and other liabilities 16.8 15.0 $ 298.8 $ 282.1 $ 653.9 $ 573.5 |
Borrowings And Credit Arrange37
Borrowings And Credit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Financial Services Borrowings | Financial Services borrowings include the following: 2017 2016 EFFECTIVE EFFECTIVE At December 31, RATE BORROWINGS RATE BORROWINGS Commercial paper 1.3 % $ 2,723.7 .7 % $ 2,242.5 Bank loans 6.9 % 210.2 5.5 % 205.0 2,933.9 2,447.5 Term notes 1.7 % 5,945.5 1.5 % 6,027.7 1.7 % $ 8,879.4 1.4 % $ 8,475.2 |
Annual Maturities of Financial Services Borrowings | The annual maturities of the Financial Services borrowings are as follows: COMMERCIAL BANK TERM Beginning January 1, 2018 PAPER LOANS NOTES TOTAL 2018 $ 2,725.5 $ 57.1 $ 1,693.1 $ 4,475.7 2019 27.8 1,785.4 1,813.2 2020 74.8 1,610.3 1,685.1 2021 50.5 575.8 626.3 2022 300.0 300.0 $ 2,725.5 $ 210.2 $ 5,964.6 $ 8,900.3 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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. FAIR VALUE HIERARCHY At December 31, 2017 TARGET LEVEL 1 LEVEL 2 TOTAL MEASURED AT NAV TOTAL Equities: U.S. equities $ 768.5 $ 768.5 Global equities 866.8 866.8 Total equities 50 - 70% 1,635.3 1,635.3 Fixed income: U.S. fixed income $ 223.3 $ 238.2 $ 461.5 $ 416.0 $ 877.5 Non-U.S. fixed income 27.4 27.4 299.4 326.8 Total fixed income 30 - 50% 223.3 265.6 488.9 715.4 1,204.3 Cash and other 9.2 70.1 79.3 .7 80.0 Total plan assets $ 232.5 $ 335.7 $ 568.2 $ 2,351.4 $ 2,919.6 FAIR VALUE HIERARCHY At December 31, 2016 TARGET LEVEL 1 LEVEL 2 TOTAL MEASURED AT NAV TOTAL Equities: U.S. equities $ 690.8 $ 690.8 Global equities 746.1 746.1 Total equities 50 - 70% 1,436.9 1,436.9 Fixed income: U.S. fixed income $ 195.7 $ 196.9 $ 392.6 $ 317.8 $ 710.4 Non-U.S. fixed income 19.6 19.6 254.5 274.1 Total fixed income 30 - 50% 195.7 216.5 412.2 572.3 984.5 Cash and other 8.8 60.0 68.8 3.9 72.7 Total plan assets $ 204.5 $ 276.5 $ 481.0 $ 2,013.1 $ 2,494.1 |
Weighted Average Assumptions of Pension Plans | The following additional data relates to all pension plans of the Company: At December 31, 2017 2016 Weighted average assumptions: Discount rate 3.3 % 3.7 % Rate of increase in future compensation levels 3.9 % 3.9 % Assumed long-term rate of return on plan assets 6.4 % 6.4 % |
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: 2017 2016 Change in projected benefit obligation: Benefit obligation at January 1 $ 2,505.6 $ 2,306.0 Service cost 92.9 88.6 Interest cost 81.1 94.3 Benefits paid (82.6 ) (80.2 ) Actuarial loss 154.7 186.4 Currency translation and other 68.6 (90.6 ) Participant contributions .4 1.1 Projected benefit obligation at December 31 $ 2,820.7 $ 2,505.6 Change in plan assets: Fair value of plan assets at January 1 $ 2,494.1 $ 2,219.0 Employer contributions 70.6 185.7 Actual return on plan assets 369.8 254.5 Benefits paid (82.6 ) (80.2 ) Currency translation and other 67.3 (86.0 ) Participant contributions .4 1.1 Fair value of plan assets at December 31 $ 2,919.6 $ 2,494.1 Funded status at December 31 $ 98.9 $ (11.5 ) |
Amounts Recorded on Balance Sheets | 2017 2016 Amounts recorded on balance sheet: Other noncurrent assets $ 228.9 $ 107.2 Other liabilities 130.0 118.7 Accumulated other comprehensive loss: Actuarial loss 372.9 410.6 Prior service cost 2.6 3.4 Net initial transition amount .1 .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, 2017 2016 Projected benefit obligation $ 142.5 $ 110.2 Accumulated benefit obligation 124.0 100.4 Fair value of plan assets 23.5 9.3 |
Components of Pension Expense | The components of pension expense are as follows: Year Ended December 31, 2017 2016 2015 Service cost $ 92.9 $ 88.6 $ 91.3 Interest on projected benefit obligation 81.1 94.3 92.2 Expected return on assets (159.7 ) (141.7 ) (140.8 ) Amortization of prior service costs 1.2 1.2 1.3 Recognized actuarial loss 25.4 27.7 41.1 Curtailment gain (.1 ) Net pension expense $ 40.9 $ 70.1 $ 85.0 |
Multi-employer Plans | The Company’s participation in the following multi-employer plans for the years ended December 31 are as follows: PENSION COMPANY CONTRIBUTIONS PENSION PLAN EIN NUMBER 2017 2016 2015 Metal and Electrical Engineering Industry Pension Fund 135668 $ 25.0 $ 23.1 $ 23.0 Western Metal Industry Pension Plan 91-6033499 001 1.4 1.5 2.1 Other plans .8 .7 .9 $ 27.2 $ 25.3 $ 26.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 Domestic $ 1,347.8 $ 1,190.7 $ 1,581.6 Foreign 825.5 (60.3 ) 755.5 $ 2,173.3 $ 1,130.4 $ 2,337.1 |
Components of Provision for Income Taxes | The components of the Company’s provision for income taxes include the following: Year Ended December 31, 2017 2016 2015 Current provision: Federal $ 397.7 $ 322.9 $ 521.8 State 63.8 41.7 61.1 Foreign 210.5 213.2 205.4 672.0 577.8 788.3 Deferred provision (benefit): Federal (173.8 ) 31.5 (57.8 ) State 2.3 4.8 5.3 Foreign (2.4 ) (5.4 ) (2.7 ) (173.9 ) 30.9 (55.2 ) $ 498.1 $ 608.7 $ 733.1 |
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: 2017 2016 2015 Statutory rate 35.0 % 35.0 % 35.0 % Effect of: Rate change on deferred taxes (14.0 ) Transition tax 6.0 Non-deductible EC charge 25.8 State 1.8 2.9 2.1 Federal domestic production deduction (1.1 ) (2.6 ) (1.8 ) Tax on foreign earnings (4.0 ) (7.4 ) (2.7 ) Other, net (.8 ) .1 (1.2 ) 22.9 % 53.8 % 31.4 % |
Tax Effects of Temporary Differences Representing Deferred Tax Assets and Liabilities and Balance Sheet Classification | The tax effects of temporary differences representing deferred tax assets and liabilities are as follows: At December 31, 2017 2016 Assets: Accrued expenses $ 183.9 $ 239.2 Net operating loss and tax credit carryforwards 102.1 84.4 Postretirement benefit plans 11.7 Allowance for losses on receivables 35.6 41.2 Goodwill and intangibles 34.4 1.3 Other 89.2 105.1 445.2 482.9 Valuation allowance (118.6 ) (64.5 ) 326.6 418.4 Liabilities: Financial Services leasing depreciation (608.2 ) (808.7 ) Depreciation and amortization (165.1 ) (246.1 ) Postretirement benefit plans (39.5 ) Other (28.8 ) (35.3 ) (841.6 ) (1,090.1 ) Net deferred tax liability $ (515.0 ) $ (671.7 ) The balance sheets classification of the Company’s deferred tax assets and liabilities are as follows: At December 31, 2017 2016 Truck, Parts and Other: Other noncurrent assets, net $ 71.0 $ 119.5 Other liabilities (1.9 ) (6.3 ) Financial Services: Other assets 45.2 74.6 Deferred taxes and other liabilities (629.3 ) (859.5 ) Net deferred tax liability $ (515.0 ) $ (671.7 ) |
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: 2017 2016 2015 Balance at January 1 $ 17.3 $ 19.1 $ 12.0 Additions for tax positions related to the current year 5.6 3.9 10.3 Additions for tax positions related to prior years Reductions for tax positions related to prior years (.3 ) (2.0 ) Reductions related to settlements (5.4 ) Lapse of statute of limitations (1.2 ) Balance at December 31 $ 22.9 $ 17.3 $ 19.1 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION TOTAL Balance at January 1, 2017 $ (4.3 ) $ (.3 ) $ (414.1 ) $ (709.4 ) $ (1,128.1 ) Recorded into AOCI (91.6 ) (1.1 ) 20.4 292.0 219.7 Reclassified out of AOCI 97.1 (.4 ) 18.1 114.8 Net other comprehensive income (loss) 5.5 (1.5 ) 38.5 292.0 334.5 Balance at December 31, 2017 $ 1.2 $ (1.8 ) $ (375.6 ) $ (417.4 ) $ (793.6 ) DERIVATIVE CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION TOTAL Balance at January 1, 2016 $ (6.4 ) $ 2.1 $ (390.4 ) $ (622.3 ) $ (1,017.0 ) Recorded into AOCI .2 .3 (42.6 ) (87.1 ) (129.2 ) Reclassified out of AOCI 1.9 (2.7 ) 18.9 18.1 Net other comprehensive income (loss) 2.1 (2.4 ) (23.7 ) (87.1 ) (111.1 ) Balance at December 31, 2016 $ (4.3 ) $ (.3 ) $ (414.1 ) $ (709.4 ) $ (1,128.1 ) DERIVATIVE CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION 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 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI during the years ended December 31, 2017, 2016 and 2015 are as follows: AMOUNT RECLASSIFIED OUT OF AOCI AOCI COMPONENTS LINE ITEM IN THE CONSOLIDATED STATEMENTS OF INCOME 2017 2016 2015 Unrealized (gains) and losses on derivative contracts: Truck, Parts and Other Foreign-exchange contracts Net sales and revenues $ 12.1 $ (27.9 ) $ (.1 ) Cost of sales and revenues 3.9 .6 3.4 Interest and other expense, net 1.8 1.3 (4.1 ) Financial Services Interest-rate contracts Interest and other borrowing expenses 115.6 36.8 (28.5 ) Pre-tax expense increase (reduction) 133.4 10.8 (29.3 ) Tax (benefit) expense (36.3 ) (8.9 ) 8.5 After-tax expense increase (reduction) 97.1 1.9 (20.8 ) Unrealized (gains) and losses on marketable debt securities: Marketable debt securities Investment income (.6 ) (3.7 ) (2.1 ) Tax expense .2 1.0 .6 After-tax income increase (.4 ) (2.7 ) (1.5 ) Pension plans: Truck, Parts and Other Actuarial loss Cost of sales and revenues 12.3 13.6 22.4 Selling, general and administrative 12.3 13.0 17.1 24.6 26.6 39.5 Prior service costs Cost of sales and revenues 1.0 .9 1.0 Selling, general and administrative .2 .3 .2 1.2 1.2 1.2 Financial Services Actuarial loss Selling, general and administrative .8 1.1 1.7 Pre-tax expense increase 26.6 28.9 42.4 Tax benefit (8.5 ) (10.0 ) (14.8 ) After-tax expense increase 18.1 18.9 27.6 Total reclassifications out of AOCI $ 114.8 $ 18.1 $ 5.3 |
Derivative Financial Instrume41
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 ASSETS LIABILITIES ASSETS LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets $ 53.3 $ 109.7 Deferred taxes and other liabilities $ 98.3 $ 46.3 Foreign-exchange contracts: Truck, Parts and Other: Other current assets 3.8 3.9 Accounts payable, accrued expenses and other 1.9 1.9 $ 57.1 $ 100.2 $ 113.6 $ 48.2 Economic hedges: Interest-rate contracts: Financial Services: Deferred taxes and other liabilities $ .1 Foreign-exchange contracts: Truck, Parts and Other: Other current assets $ .6 $ .8 Accounts payable, accrued expenses and other $ .6 .3 Financial Services: Other assets .1 4.0 Deferred taxes and other liabilities 2.2 .7 $ .7 $ 2.8 $ 4.8 $ 1.1 Gross amounts recognized in Balance Sheet $ 57.8 $ 103.0 $ 118.4 $ 49.3 Less amounts not offset in financial instruments: Truck, Parts and Other: Foreign-exchange contracts (.4 ) (.4 ) (1.0 ) (1.0 ) Financial Services: Interest-rate contracts (8.7 ) (8.7 ) (15.4 ) (15.4 ) Foreign-exchange contracts (.1 ) (.1 ) Pro forma net amount $ 48.7 $ 93.9 $ 101.9 $ 32.8 |
Foreign Currency And Interest Rate Contract | |
Gains/Losses of Derivative Financial Instruments | The expense (income) recognized in earnings related to economic hedges was as follows: Year Ended December 31, 2017 2016 2015 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- RATE EXCHANGE RATE EXCHANGE RATE EXCHANGE CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS Truck, Parts and Other: Net sales and revenues $ (.4 ) Cost of sales and revenues $ .3 .4 $ (.7 ) Interest and other expense, net 2.1 14.9 3.0 Financial Services: Interest and other borrowing expenses $ (.1 ) 49.1 $ .1 (28.4 ) (7.6 ) Selling, general and administrative .5 1.8 (2.3 ) $ (.1 ) $ 52.0 $ .1 $ (11.7 ) $ (7.6 ) |
Fair Value Hedging | Financial Services | |
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, 2017 2016 2015 Interest-rate swaps $ 2.3 $ 5.5 $ (.9 ) Term notes (1.5 ) (6.4 ) .2 |
Cash Flow Hedging | |
Gains/Losses of Derivative Financial Instruments | The following table presents the pre-tax effects of derivative instruments recognized in other comprehensive income (loss) (OCI): Year Ended December 31, 2017 2016 2015 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- RATE EXCHANGE RATE EXCHANGE RATE EXCHANGE CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS (Loss) gain recognized in OCI: Truck, Parts and Other $ (17.4 ) $ 24.4 $ 4.9 Financial Services $ (108.1 ) $ (30.9 ) $ 33.8 $ (108.1 ) $ (17.4 ) $ (30.9 ) $ 24.4 $ 33.8 $ 4.9 Expense (income) reclassified out of AOCI into income was as follows: Year Ended December 31, 2017 2016 2015 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- RATE EXCHANGE RATE EXCHANGE RATE EXCHANGE CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS Truck, Parts and Other: Net sales and revenues $ 12.1 $ (27.9 ) $ (.1 ) Cost of sales and revenues 3.9 .6 3.4 Interest and other expense, net 1.8 1.3 (4.1 ) Financial Services: Interest and other borrowing expenses $ 115.6 $ 36.8 $ (28.5 ) $ 115.6 $ 17.8 $ 36.8 $ (26.0 ) $ (28.5 ) $ (.8 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 535.5 $ 535.5 U.S. corporate securities 89.7 89.7 U.S. government and agency securities $ 48.7 48.7 Non-U.S. corporate securities 459.3 459.3 Non-U.S. government securities 91.7 91.7 Other debt securities 142.2 142.2 Total marketable debt securities $ 48.7 $ 1,318.4 $ 1,367.1 Derivatives Cross currency swaps $ 44.2 $ 44.2 Interest-rate swaps 9.1 9.1 Foreign-exchange contracts 4.5 4.5 Total derivative assets $ 57.8 $ 57.8 Liabilities: Derivatives Cross currency swaps $ 93.0 $ 93.0 Interest-rate swaps 5.3 5.3 Foreign-exchange contracts 4.7 4.7 Total derivative liabilities $ 103.0 $ 103.0 At December 31, 2016 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 595.0 $ 595.0 U.S. corporate securities 47.8 47.8 U.S. government and agency securities $ 15.4 .6 16.0 Non-U.S. corporate securities 308.0 308.0 Non-U.S. government securities 98.2 98.2 Other debt securities 75.9 75.9 Total marketable debt securities $ 15.4 $ 1,125.5 $ 1,140.9 Derivatives Cross currency swaps $ 102.7 $ 102.7 Interest-rate swaps 7.0 7.0 Foreign-exchange contracts 8.7 8.7 Total derivative assets $ 118.4 $ 118.4 Liabilities: Derivatives Cross currency swaps $ 37.1 $ 37.1 Interest-rate swaps 9.3 9.3 Foreign-exchange contracts 2.9 2.9 Total derivative liabilities $ 49.3 $ 49.3 |
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, 2017 2016 CARRYING FAIR CARRYING FAIR AMOUNT VALUE AMOUNT VALUE Assets: Financial Services fixed rate loans $ 3,793.8 $ 3,804.8 $ 3,607.4 $ 3,638.4 Liabilities: Financial Services fixed rate debt 5,397.6 5,387.0 4,915.2 4,929.3 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased 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. 2017 2016 2015 Risk-free interest rate 1.97 % 1.37 % 1.35 % Expected volatility 23 % 26 % 28 % Expected dividend yield 3.1 % 4.0 % 3.4 % Expected term 5 years 5 years 5 years Weighted average grant date fair value of options per share $ 10.56 $ 7.51 $ 10.98 |
Activity Under Company's Stock Plans | A summary of activity under the Company’s stock plans is presented below: 2017 2016 2015 Intrinsic value of options exercised $ 22.0 $ 10.4 $ 14.1 Cash received from stock option exercises 40.0 29.4 21.8 Tax benefit related to stock award exercises 4.9 1.0 3.5 Stock based compensation 12.7 13.1 14.6 Tax benefit related to stock based compensation 4.6 4.7 5.1 |
Stock Option Activity | The summary of options as of December 31, 2017 and changes during the year then ended are presented below: PER SHARE REMAINING AGGREGATE NUMBER EXERCISE CONTRACTUAL INTRINSIC OF SHARES PRICE* LIFE IN YEARS* VALUE Options outstanding at January 1 4,466,900 $ 48.15 Granted 605,300 67.63 Exercised (895,100 ) 44.74 Cancelled (120,900 ) 56.28 Options outstanding at December 31 4,056,200 $ 51.57 5.73 $ 79.1 Vested and expected to vest 3,949,100 $ 51.31 5.65 $ 78.1 Exercisable 2,295,200 $ 45.79 3.84 $ 58.0 * Weighted Average |
Nonvested Restricted Shares Activity | The summary of nonvested restricted shares as of December 31, 2017 and changes during the year then ended is presented below: NUMBER GRANT DATE NONVESTED SHARES OF SHARES FAIR VALUE* Nonvested awards outstanding at January 1 198,400 $ 55.27 Granted 119,200 67.48 Vested (105,900 ) 59.24 Nonvested awards outstanding at December 31 211,700 $ 60.16 * Weighted Average |
Dilutive and Antidilutive Options | The dilutive and antidilutive options are shown separately in the table below: Year Ended December 31, 2017 2016 2015 Additional shares 1,038,400 694,700 906,100 Antidilutive options 696,400 1,943,500 1,180,400 |
Segment and Related Informati44
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic Area Data | Geographic Area Data 2017 2016 2015 Net sales and revenues: United States $ 10,530.1 $ 9,221.3 $ 11,408.3 Europe 5,354.6 4,903.3 4,515.9 Other 3,571.7 2,908.7 3,190.9 $ 19,456.4 $ 17,033.3 $ 19,115.1 Property, plant and equipment, net: United States $ 1,238.1 $ 1,187.0 $ 1,140.5 The Netherlands 464.5 406.7 438.7 Other 761.8 666.3 597.2 $ 2,464.4 $ 2,260.0 $ 2,176.4 Equipment on operating leases, net: United States $ 1,530.8 $ 1,458.0 $ 1,287.9 Germany 385.1 318.3 321.9 United Kingdom 343.1 309.7 321.3 Mexico 316.1 304.8 330.0 Other 1,566.9 1,247.0 1,111.9 $ 4,142.0 $ 3,637.8 $ 3,373.0 |
Segment Reporting Information by Segment | Business Segment Data 2017 2016 2015 Net sales and revenues: Truck $ 15,543.7 $ 13,652.7 $ 15,568.6 Less intersegment (768.9 ) (885.4 ) (786.1 ) External customers 14,774.8 12,767.3 14,782.5 Parts 3,380.2 3,052.9 3,104.7 Less intersegment (53.2 ) (47.2 ) (44.6 ) External customers 3,327.0 3,005.7 3,060.1 Other 85.7 73.6 100.2 18,187.5 15,846.6 17,942.8 Financial Services 1,268.9 1,186.7 1,172.3 $ 19,456.4 $ 17,033.3 $ 19,115.1 Income before income taxes: Truck $ 1,296.9 $ 1,125.8 $ 1,440.3 Parts 614.2 543.8 555.6 Other* (37.1 ) (873.3 ) (43.2 ) 1,874.0 796.3 1,952.7 Financial Services 264.0 306.5 362.6 Investment income 35.3 27.6 21.8 $ 2,173.3 $ 1,130.4 $ 2,337.1 Depreciation and amortization: Truck $ 468.2 $ 432.8 $ 399.8 Parts 8.1 7.3 6.2 Other 18.1 15.8 14.9 494.4 455.9 420.9 Financial Services 613.1 537.2 486.2 $ 1,107.5 $ 993.1 $ 907.1 Expenditures for long-lived assets: Truck $ 769.7 $ 735.6 $ 660.0 Parts 23.4 16.9 24.9 Other 54.0 25.5 17.7 847.1 778.0 702.6 Financial Services 1,008.0 1,214.4 1,044.4 $ 1,855.1 $ 1,992.4 $ 1,747.0 Segment assets: Truck $ 5,159.7 $ 4,429.4 $ 4,472.3 Parts 950.7 805.1 793.3 Other 505.6 287.0 211.6 Cash and marketable securities 3,621.9 2,922.6 3,378.0 10,237.9 8,444.1 8,855.2 Financial Services 13,202.3 12,194.8 12,254.6 $ 23,440.2 $ 20,638.9 $ 21,109.8 * Other includes the $833.0 European Commission charge in 2016. |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | QUARTER FIRST SECOND THIRD FOURTH (millions except per share data) 2017 Truck, Parts and Other: Net sales and revenues $ 3,935.7 $ 4,397.9 $ 4,731.5 $ 5,122.4 Cost of sales and revenues 3,382.2 3,755.2 4,046.8 4,409.5 Research and development 61.0 66.1 67.0 70.6 Financial Services: Revenues 302.2 306.3 328.2 332.2 Interest and other borrowing expenses 34.1 37.4 38.3 39.8 Depreciation and other expenses 179.7 172.8 186.2 188.8 Net Income 310.3 373.0 402.7 589.2 Adjusted Net Income * 415.8 Net Income Per Share: ** Basic $ .88 $ 1.06 $ 1.14 $ 1.67 Diluted .88 1.06 1.14 1.67 Adjusted Diluted * 1.18 2016 Truck, Parts and Other: Net sales and revenues $ 4,010.6 $ 4,115.8 $ 3,953.2 $ 3,767.0 Cost of sales and revenues 3,413.6 3,489.4 3,371.5 3,243.2 Research and development 59.6 60.8 59.2 67.6 European Commission charge 942.6 (109.6 ) Financial Services: Revenues 289.4 297.4 296.2 303.7 Interest and other borrowing expenses 30.3 32.6 32.2 32.1 Depreciation and other expenses 150.9 156.4 162.6 165.3 Net (Loss) Income (594.6 ) 481.3 346.2 288.8 Adjusted Net Income * 348.0 371.7 Net (Loss) Income Per Share: Basic $ (1.69 ) $ 1.37 $ .99 $ .82 Diluted (1.69 ) 1.37 .98 .82 Adjusted Diluted * .99 1.06 * See Reconciliation of GAAP to Non-GAAP Financial Measures for 2017 and 2016 on page 33. ** The sum of quarterly per share amounts may not equal per share amounts reported for year-to-date periods. This is due to changes in the number of weighted shares outstanding and the effects of rounding for each period. |
Significant Accounting Polici46
Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Accounting Policies [Abstract] | |||||||||||
Reportable segments | Segment | 3 | ||||||||||
Liquid investments maturity period | 90 days | ||||||||||
Goodwill | $ 117.4 | $ 103 | $ 117.4 | $ 103 | |||||||
Derivative assets | 57.8 | 118.4 | 57.8 | 118.4 | |||||||
Decrease in RVG assets | 23,440.2 | 20,638.9 | 23,440.2 | 20,638.9 | $ 21,109.8 | ||||||
Retained Earnings | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Increase in retained earnings by cumulative effect adjustment | (19.9) | ||||||||||
Accounting Standards Update 2016-16 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
New accounting pronouncement, cumulative effect of change on prepaid income taxes and retained earnings | (19.9) | (19.9) | |||||||||
Accounting Standards Update 2014-09 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Increase in retained earnings by cumulative effect adjustment | 17 | ||||||||||
Accounting Standards Update 2014-09 | Restatement Adjustment | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Decrease in RVG assets | (497) | (497) | |||||||||
Decrease in RVG liability | (520) | (520) | |||||||||
New Accounting Pronouncement, Early Adoption, Effect | Retained Earnings | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Tax effect of reclassification from AOCI to retained earnings | 40 | ||||||||||
New Accounting Pronouncement, Early Adoption, Effect | Accumulated Other Comprehensive Income | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Tax effect of reclassification from AOCI to retained earnings | (40) | ||||||||||
Designated under hedge accounting | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Derivative assets | 57.1 | 113.6 | 57.1 | 113.6 | |||||||
Designated under hedge accounting | Interest-Rate Contracts | Other Assets | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Derivative assets | 53.3 | $ 53.3 | |||||||||
Engines manufactured by PACCAR | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Warranty period | 2 years | ||||||||||
Trade Receivables | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Trade and other receivables, net | 962 | 734.6 | $ 962 | 734.6 | |||||||
Other Receivables | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Trade and other receivables, net | 165.9 | 127.6 | $ 165.9 | 127.6 | |||||||
Minimum | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Lease and guarantee periods (in years) | 2 years | ||||||||||
Estimated useful life of equipment (in years) | 4 years | ||||||||||
Warranty period | 1 year | ||||||||||
Maximum | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Lease and guarantee periods (in years) | 5 years | ||||||||||
Estimated useful life of equipment (in years) | 9 years | ||||||||||
Warranty period | 5 years | ||||||||||
Financial Services | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Operating lease, rental and other revenues | $ 837.8 | 760.5 | 728.5 | ||||||||
Depreciation and other expenses | 188.8 | $ 186.2 | $ 172.8 | $ 179.7 | 165.3 | $ 162.6 | $ 156.4 | $ 150.9 | $ 727.5 | $ 635.2 | 583.7 |
Months contractual terms extended | 5 months | 4 months | |||||||||
Decrease in RVG assets | 13,202.3 | 12,194.8 | $ 13,202.3 | $ 12,194.8 | 12,254.6 | ||||||
Decrease in RVG liability | 10,119.3 | 9,805.1 | 10,119.3 | 9,805.1 | |||||||
Financial Services | Designated under hedge accounting | Interest-Rate Contracts | Other Assets | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Derivative assets | 53.3 | 109.7 | 53.3 | 109.7 | |||||||
Financial Services | Operating Lease | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Operating lease, rental and other revenues | 760.9 | 698.9 | 668.6 | ||||||||
Depreciation and other expenses | $ 665.7 | 581.7 | $ 536.2 | ||||||||
Financial Services | Minimum | Loans Receivable | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Origination cost, amortization period | 36 months | ||||||||||
Financial Services | Minimum | Loans And Leases | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Receivable, collection period | 3 years | ||||||||||
Financial Services | Maximum | Loans Receivable | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Origination cost, amortization period | 60 months | ||||||||||
Financial Services | Maximum | Loans And Leases | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Receivable, collection period | 5 years | ||||||||||
Truck, Parts and Other | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Trade and other receivables, net | 1,127.9 | 862.2 | $ 1,127.9 | $ 862.2 | |||||||
Trade receivable days outstanding considered past due | 30 days | 30 days | 30 days | ||||||||
Allowance for credit losses for Truck, Parts and Other | 1.5 | 1.7 | $ 1.5 | $ 1.7 | |||||||
Net charge-offs | 0.1 | 0.1 | $ 0.3 | ||||||||
Decrease in RVG assets | 10,237.9 | 8,444.1 | 10,237.9 | 8,444.1 | $ 8,855.2 | ||||||
Decrease in RVG liability | $ 5,270.4 | $ 4,056.2 | $ 5,270.4 | $ 4,056.2 |
Marketable Debt Securities (Det
Marketable Debt Securities (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 1,370.2 | $ 1,141.9 |
Unrealized Gains | 1.9 | 2.7 |
Unrealized Losses | 5 | 3.7 |
Fair Value | 1,367.1 | 1,140.9 |
U.S. tax-exempt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 537.9 | 597.9 |
Unrealized Gains | 0 | 0.2 |
Unrealized Losses | 2.4 | 3.1 |
Fair Value | 535.5 | 595 |
U.S. corporate securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 89.7 | 47.6 |
Unrealized Gains | 0.2 | 0.2 |
Unrealized Losses | 0.2 | 0 |
Fair Value | 89.7 | 47.8 |
U.S. government and agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 48.9 | 16 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0.2 | 0 |
Fair Value | 48.7 | 16 |
Non-U.S. corporate securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 459.4 | 306.9 |
Unrealized Gains | 1.3 | 1.5 |
Unrealized Losses | 1.4 | 0.4 |
Fair Value | 459.3 | 308 |
Non-U.S. government securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 91.5 | 97.6 |
Unrealized Gains | 0.3 | 0.6 |
Unrealized Losses | 0.1 | 0 |
Fair Value | 91.7 | 98.2 |
Other debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 142.8 | 75.9 |
Unrealized Gains | 0.1 | 0.2 |
Unrealized Losses | 0.7 | 0.2 |
Fair Value | $ 142.2 | $ 75.9 |
Investments in Marketable Deb48
Investments in Marketable Debt Securities - Additional Information (Detail) - Truck, Parts and Other - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Gross realized gains from sales of marketable debt securities | $ 1,400,000 | $ 4,400,000 | $ 2,600,000 |
Gross realized loss from sales of marketable debt securities | 500,000 | 100,000 | $ 800,000 |
Other-than-temporary impairments recognized on investments | $ 0 | $ 0 |
Marketable Debt Securities Cont
Marketable Debt Securities Continuous Unrealized Losses (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months Fair Value | $ 908.5 | $ 615.5 |
Less than 12 Months Unrealized Losses | 4.8 | 3.7 |
12 Months or Greater Fair value | 18.4 | 0 |
12 Months or Greater Unrealized losses | $ 0.2 | $ 0 |
Contractual Maturities of Marke
Contractual Maturities of Marketable Debt Securities (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost Maturities: | ||
Within one year | $ 413.7 | |
One to five years | 939.6 | |
More than ten years | 16.9 | |
Amortized Cost | 1,370.2 | $ 1,141.9 |
Fair Value Maturities: | ||
Within one year | 413.3 | |
One to five years | 936.9 | |
More than ten years | 16.9 | |
Fair Value | $ 1,367.1 | $ 1,140.9 |
Inventories Table (Detail)
Inventories Table (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Finished products | $ 515.7 | $ 452.3 |
Work in process and raw materials | 586.2 | 444.7 |
Inventory, Gross, Total | 1,101.9 | 897 |
Less LIFO reserve | 173.5 | 169.2 |
Inventories, net | $ 928.4 | $ 727.8 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Truck, Parts and Other | ||
Inventory [Line Items] | ||
Percentage of inventories valued using LIFO method of accounting | 47.00% | 49.00% |
Finance and Other Receivables53
Finance and Other Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial Services | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans | $ 4,147.8 | $ 3,948.6 | |||
Direct financing leases | 3,211.7 | 2,798 | |||
Sales-type finance leases | 781.1 | 867.3 | |||
Dealer wholesale financing | 1,880.6 | 1,528.5 | |||
Operating lease receivables and other | 161.1 | 150.9 | |||
Unearned interest: Finance leases | (368) | (344.7) | |||
Finance and other receivables, net of deferred income | 9,814.3 | 8,948.6 | |||
Less allowance for losses | (117.2) | (111.2) | $ (114.8) | $ (122) | |
Finance and other receivables, net | 9,697.1 | 8,837.4 | |||
Loans And Leases | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Less allowance for losses | (101.9) | (97.1) | |||
Dealer | Wholesale | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Less allowance for losses | (6) | (5.5) | |||
Dealer | Wholesale | Financial Services | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Less allowance for losses | (6) | (5.5) | (7.3) | (9) | |
Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Less allowance for losses | (9.3) | (8.6) | |||
Other | Financial Services | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Less allowance for losses | [1] | $ (9.3) | $ (8.6) | $ (8.3) | $ (7.5) |
[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, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivables | $ 9,653.2 | $ 8,797.7 |
Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2,018 | 1,351.5 | |
2,019 | 1,088.1 | |
2,020 | 857.2 | |
2,021 | 542 | |
2,022 | 242.9 | |
Thereafter | 66.1 | |
Financing Receivables | 4,147.8 | |
Finance Leases Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2,018 | 1,226.7 | |
2,019 | 959.6 | |
2,020 | 716.6 | |
2,021 | 440.6 | |
2,022 | 217.8 | |
Thereafter | 90.6 | |
Financing Receivables | $ 3,651.9 |
Finance and Other Receivables -
Finance and Other Receivables - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans accounted for as troubled debt restructurings | $ 37.9 | $ 43.1 | |
TDRs charged-off during the period | 1.4 | 4.8 | |
Repossessed inventory | 13.1 | 25.4 | |
Proceeds from the sales of repossessed assets | $ 58.3 | 51.7 | $ 48 |
Financial Services | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable repayment period | 1 year | ||
Financial Services | Financing Receivable | Maximum | Credit Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of portfolio assets | 5.00% | ||
Financial Services | Finance Leases Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Estimated residual values included with finance leases | $ 340.9 | $ 239.1 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for losses on financial services receivables | $ 22.3 | $ 18.4 | $ 12.4 | |
Dealer | Wholesale | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 5.5 | |||
Ending Balance | 6 | 5.5 | ||
Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 8.6 | |||
Ending Balance | 9.3 | 8.6 | ||
Financial Services | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 111.2 | 114.8 | 122 | |
Provision for losses on financial services receivables | 22.3 | 18.4 | 12.4 | |
Charge-offs | (26.7) | (25) | (17.1) | |
Recoveries | 5.3 | 5.8 | 4 | |
Currency translation and other | 5.1 | (2.8) | (6.5) | |
Ending Balance | 117.2 | 111.2 | 114.8 | |
Financial Services | Dealer | Wholesale | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 5.5 | 7.3 | 9 | |
Provision for losses on financial services receivables | (1.7) | (0.8) | ||
Charge-offs | 0 | (0.3) | ||
Recoveries | 0 | 0 | ||
Currency translation and other | 0.5 | (0.1) | (0.6) | |
Ending Balance | 6 | 5.5 | 7.3 | |
Financial Services | Dealer | Retail | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 9.6 | 10.3 | 11.9 | |
Provision for losses on financial services receivables | (0.3) | (0.7) | (1.4) | |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Currency translation and other | 0.1 | 0 | (0.2) | |
Ending Balance | 9.4 | 9.6 | 10.3 | |
Financial Services | Customer Retail | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 87.5 | 88.9 | 93.6 | |
Provision for losses on financial services receivables | 21.1 | 18.6 | 11.6 | |
Charge-offs | (24.8) | (22.9) | (13.6) | |
Recoveries | 5 | 5.5 | 3.5 | |
Currency translation and other | 3.7 | (2.6) | (6.2) | |
Ending Balance | 92.5 | 87.5 | 88.9 | |
Financial Services | Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | [1] | 8.6 | 8.3 | 7.5 |
Provision for losses on financial services receivables | [1] | 1.5 | 2.2 | 3 |
Charge-offs | [1] | (1.9) | (2.1) | (3.2) |
Recoveries | [1] | 0.3 | 0.3 | 0.5 |
Currency translation and other | [1] | 0.8 | (0.1) | 0.5 |
Ending Balance | [1] | $ 9.3 | $ 8.6 | $ 8.3 |
[1] | Operating lease and other trade receivables. |
Finance Receivable Evaluated an
Finance Receivable Evaluated and Determined Individually and Collectively (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | $ 54.9 | $ 57.4 |
Allowance for impaired finance receivables determined individually | 6.7 | 5 |
Recorded investment for finance receivables evaluated collectively | 9,598.3 | 8,740.3 |
Allowance for finance receivables determined collectively | 101.2 | 97.6 |
Dealer | Wholesale | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | 0.1 | 0.1 |
Allowance for impaired finance receivables determined individually | 0.1 | 0.1 |
Recorded investment for finance receivables evaluated collectively | 1,880.5 | 1,528.4 |
Allowance for finance receivables determined collectively | 5.9 | 5.4 |
Dealer | Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | 4 | 0 |
Allowance for impaired finance receivables determined individually | 0 | |
Recorded investment for finance receivables evaluated collectively | 1,354.7 | 1,406 |
Allowance for finance receivables determined collectively | 9.4 | 9.6 |
Customer Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Recorded investment for impaired finance receivables evaluated individually | 50.8 | 57.3 |
Allowance for impaired finance receivables determined individually | 6.6 | 4.9 |
Recorded investment for finance receivables evaluated collectively | 6,363.1 | 5,805.9 |
Allowance for finance receivables determined collectively | $ 85.9 | $ 82.6 |
Recorded Investment for Finance
Recorded Investment for Finance Receivables that are on Non-accrual Status (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | $ 50.5 | $ 56.5 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | 0.1 | 0.1 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | 44.4 | 49.5 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment of finance receivables that are on non-accrual status | $ 6 | $ 6.9 |
Summary of Impaired Loans (Deta
Summary of Impaired Loans (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | $ 19.9 | $ 20.8 |
Associated allowance | (3.3) | (3.2) |
Net carrying amount of impaired loans with specific reserve | 16.6 | 17.6 |
Impaired loans with no specific reserve | 17.2 | 11 |
Net carrying amount of impaired loans | 33.8 | 28.6 |
Average recorded investment | 37.2 | 33.2 |
Dealer | Wholesale | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 0.1 | 0.1 |
Associated allowance | (0.1) | (0.1) |
Net carrying amount of impaired loans with specific reserve | 0 | 0 |
Impaired loans with no specific reserve | 0 | 0 |
Net carrying amount of impaired loans | 0 | 0 |
Average recorded investment | 0.1 | 2.8 |
Dealer | Retail | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 0 | 0 |
Associated allowance | 0 | 0 |
Net carrying amount of impaired loans with specific reserve | 0 | 0 |
Impaired loans with no specific reserve | 3.9 | 0 |
Net carrying amount of impaired loans | 3.9 | 0 |
Average recorded investment | 4 | 0 |
Customer Retail | Fleet | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 18.8 | 18.9 |
Associated allowance | (3) | (2.8) |
Net carrying amount of impaired loans with specific reserve | 15.8 | 16.1 |
Impaired loans with no specific reserve | 13.1 | 10.8 |
Net carrying amount of impaired loans | 28.9 | 26.9 |
Average recorded investment | 31.3 | 28 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 1 | 1.8 |
Associated allowance | (0.2) | (0.3) |
Net carrying amount of impaired loans with specific reserve | 0.8 | 1.5 |
Impaired loans with no specific reserve | 0.2 | 0.2 |
Net carrying amount of impaired loans | 1 | 1.7 |
Average recorded investment | $ 1.8 | $ 2.4 |
Summary of Impaired Loans (Cash
Summary of Impaired Loans (Cash Basis Method) (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income recognized: | |||
Interest income recognized on a cash basis | $ 1.7 | $ 1.5 | $ 1.8 |
Customer Retail | Fleet | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | 1.6 | 1.1 | 1.4 |
Customer Retail | Owner/Operator | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | $ 0.1 | $ 0.4 | $ 0.4 |
Finance Receivables by Credit Q
Finance Receivables by Credit Quality Indicator and Portfolio Class (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | $ 9,653.2 | $ 8,797.7 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 9,524.7 | 8,710.8 |
Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 73.6 | 29.5 |
At-risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 54.9 | 57.4 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,880.6 | 1,528.5 |
Dealer | Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,358.7 | 1,406 |
Dealer | Performing | Wholesale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,874.5 | 1,519.3 |
Dealer | Performing | Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,354.7 | 1,406 |
Dealer | Watch | Wholesale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 6 | 9.1 |
Dealer | Watch | Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 0 | 0 |
Dealer | At-risk | Wholesale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 0.1 | 0.1 |
Dealer | At-risk | Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 4 | 0 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 5,397.9 | 4,928.7 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,016 | 934.5 |
Customer Retail | Performing | Fleet | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 5,290.3 | 4,863.4 |
Customer Retail | Performing | Owner/Operator | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 1,005.2 | 922.1 |
Customer Retail | Watch | Fleet | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 62.9 | 14.9 |
Customer Retail | Watch | Owner/Operator | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 4.7 | 5.5 |
Customer Retail | At-risk | Fleet | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | 44.7 | 50.4 |
Customer Retail | At-risk | Owner/Operator | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivables | $ 6.1 | $ 6.9 |
Financing Receivables by Aging
Financing Receivables by Aging Category (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | $ 9,612.3 | $ 8,759.2 |
Financing Receivables | 9,653.2 | 8,797.7 |
31 - 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 18.7 | 16.5 |
Greater than 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 22.2 | 22 |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 1,880.5 | 1,528.4 |
Financing Receivables | 1,880.6 | 1,528.5 |
Dealer | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 1,358.7 | 1,406 |
Financing Receivables | 1,358.7 | 1,406 |
Dealer | 31 - 60 days past due | Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 0 | 0 |
Dealer | 31 - 60 days past due | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 0 | 0 |
Dealer | Greater than 60 days past due | Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 0.1 | 0.1 |
Dealer | Greater than 60 days past due | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 0 | 0 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 5,365.7 | 4,898.4 |
Financing Receivables | 5,397.9 | 4,928.7 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 1,007.4 | 926.4 |
Financing Receivables | 1,016 | 934.5 |
Customer Retail | 31 - 60 days past due | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 14.7 | 12.6 |
Customer Retail | 31 - 60 days past due | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 4 | 3.9 |
Customer Retail | Greater than 60 days past due | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 17.5 | 17.7 |
Customer Retail | Greater than 60 days past due | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | $ 4.6 | $ 4.2 |
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, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | $ 20.5 | $ 31.6 |
Post-Modification Recorded Investment | 20.5 | 31.6 |
Customer Retail | Fleet | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 19.9 | 27.2 |
Post-Modification Recorded Investment | 19.9 | 27.2 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 0.6 | 4.4 |
Post-Modification Recorded Investment | $ 0.6 | $ 4.4 |
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, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | ||
Recorded Investment, subsequently defaulted | $ 4.9 | $ 0.7 |
Customer Retail | Fleet | ||
Financing Receivable, Modifications [Line Items] | ||
Recorded Investment, subsequently defaulted | 4.7 | 0.3 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Modifications [Line Items] | ||
Recorded Investment, subsequently defaulted | $ 0.2 | $ 0.4 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property Subject to or Available for Operating Lease [Line Items] | |||
Total | $ 4,142 | $ 3,637.8 | $ 3,373 |
Truck, Parts and Other | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Equipment on operating leases | 1,615.5 | 1,282.3 | |
Less allowance for depreciation | (349.8) | (268.4) | |
Total | 1,265.7 | 1,013.9 | |
Financial Services | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Equipment on operating leases | 4,066.3 | 3,640.6 | |
Less allowance for depreciation | (1,190) | (1,016.7) | |
Total | $ 2,876.3 | $ 2,623.9 |
Equipment on Operating Leases -
Equipment on Operating Leases - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Financial Services | |
Property Subject to or Available for Operating Lease [Line Items] | |
Minimum lease payments receivable for operating leases, in 2018 | $ 628.5 |
Minimum lease payments receivable for operating leases, in 2019 | 433.2 |
Minimum lease payments receivable for operating leases, in 2020 | 267.1 |
Minimum lease payments receivable for operating leases, in 2021 | 138.2 |
Minimum lease payments receivable for operating leases, in 2022 | 49.4 |
Minimum lease payments receivable for operating leases, thereafter | 9.6 |
Truck, Parts and Other | |
Property Subject to or Available for Operating Lease [Line Items] | |
Annual amortization of deferred lease revenues, in 2018 | 188.9 |
Annual amortization of deferred lease revenues, in 2019 | 123.8 |
Annual amortization of deferred lease revenues, in 2020 | 69.5 |
Annual amortization of deferred lease revenues, in 2021 | 42.3 |
Annual amortization of deferred lease revenues, in 2022 | 4.5 |
Annual amortization of deferred lease revenues, thereafter | 0.2 |
Annual maturities of the residual value guarantees, in 2018 | 287.8 |
Annual maturities of the residual value guarantees, in 2019 | 269.9 |
Annual maturities of the residual value guarantees, in 2020 | 209.5 |
Annual maturities of the residual value guarantees, in 2021 | 79.8 |
Annual maturities of the residual value guarantees, in 2022 | 54.2 |
Annual maturities of the residual value guarantees, thereafter | $ 8.6 |
Residual Value Obligation and D
Residual Value Obligation and Deferred Lease Revenue (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Residual value guarantees | $ 909.8 | $ 699.2 |
Deferred lease revenues | 429.2 | 373.4 |
Residual value guarantees and deferred revenues, Total | $ 1,339 | $ 1,072.6 |
Property, Plant and Equipment68
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net | $ 2,464.4 | $ 2,260 | $ 2,176.4 |
Truck, Parts and Other | |||
Property, Plant and Equipment [Line Items] | |||
Land | 263.3 | 221.2 | |
Buildings and improvements | 1,315.1 | 1,134.1 | |
Machinery, equipment and production tooling | 3,782.1 | 3,285.2 | |
Construction in progress | 253.8 | 352.8 | |
Property, Plant and Equipment, Gross, Total | 5,614.3 | 4,993.3 | |
Less allowance for depreciation | (3,149.9) | (2,733.3) | |
Property, plant and equipment, net | $ 2,464.4 | $ 2,260 | |
Truck, Parts and Other | Minimum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Truck, Parts and Other | Minimum | Machinery Equipment And Production Tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Truck, Parts and Other | Maximum | Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Truck, Parts and Other | Maximum | Machinery Equipment And Production Tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 12 years |
Accounts Payable, Accrued Exp69
Accounts Payable, Accrued Expenses and Other (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accounts payable | $ 1,154.7 | $ 938.6 |
Product support liabilities | 372.1 | 344.2 |
Accrued expenses | 401.4 | 233.1 |
Accrued capital expenditures | 120.1 | 111.2 |
Salaries and wages | 238.9 | 194.8 |
Other | 282.3 | 212.2 |
Accounts payable, accrued expenses and other | $ 2,569.5 | $ 2,034.1 |
Changes in Product Support Liab
Changes in Product Support Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
WARRANTY RESERVES | |||
Beginning balance | $ 282.1 | ||
Ending balance | 298.8 | $ 282.1 | |
DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS | |||
Beginning balance | 573.5 | ||
Ending balance | 653.9 | 573.5 | |
Truck, Parts and Other | |||
WARRANTY RESERVES | |||
Beginning balance | 282.1 | 346.2 | $ 310.8 |
Cost accruals | 242.1 | 211.9 | 294.8 |
Payments | (236.8) | (255.7) | (228.8) |
Change in estimates for pre-existing warranties | (2) | (7.3) | (21.3) |
Currency translation | 13.4 | (13) | (9.3) |
Ending balance | 298.8 | 282.1 | 346.2 |
DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS | |||
Beginning balance | 573.5 | 524.8 | 462 |
Deferred revenues | 371.8 | 347.6 | 333 |
Revenues recognized | (328.2) | (274.3) | (248.4) |
Currency translation | 36.8 | (24.6) | (21.8) |
Ending balance | $ 653.9 | $ 573.5 | $ 524.8 |
Product Support Liabilities (De
Product Support Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | $ 298.8 | $ 282.1 | ||
Deferred Revenues | 653.9 | 573.5 | ||
Truck, Parts and Other | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 298.8 | 282.1 | $ 346.2 | $ 310.8 |
Deferred Revenues | 653.9 | 573.5 | $ 524.8 | $ 462 |
Truck, Parts and Other | Accounts payable, accrued expenses and other | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 176 | 181.4 | ||
Deferred Revenues | 196.1 | 162.8 | ||
Truck, Parts and Other | Other liabilities | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 122.8 | 100.7 | ||
Deferred Revenues | 441 | 395.7 | ||
Financial Services | Deferred Taxes And Other Liabilities | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 0 | 0 | ||
Deferred Revenues | $ 16.8 | $ 15 |
Financial Services Borrowings (
Financial Services Borrowings (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Effective Rate | 1.70% | 1.40% |
Commercial paper | $ 2,723.7 | $ 2,242.5 |
Bank loans | 210.2 | 205 |
Commercial paper and bank loans | 2,933.9 | 2,447.5 |
Term notes | 5,945.5 | 6,027.7 |
Commercial Paper, Bank Loans, and Term Debt at Carrying Value, Total | $ 8,879.4 | $ 8,475.2 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Effective Rate | 1.30% | 0.70% |
Bank Loans | ||
Debt Instrument [Line Items] | ||
Effective Rate | 6.90% | 5.50% |
Term Loan | ||
Debt Instrument [Line Items] | ||
Effective Rate | 1.70% | 1.50% |
Borrowings and Credit Arrange73
Borrowings and Credit Arrangements - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2016MXN | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017MXN | |
Debt Disclosure [Line Items] | ||||||
Interest paid on borrowings | $ 127,400,000 | $ 108,200,000 | $ 101,300,000 | |||
Line of credit, maximum capacity | 3,520,000,000 | |||||
Line of credit, unused borrowing capacity | 3,306,800,000 | |||||
Syndicated loan facility | ||||||
Debt Disclosure [Line Items] | ||||||
Line of credit, maximum capacity | 3,000,000,000 | |||||
Line of credit, outstanding amount | 0 | |||||
Expires in June 2018 | Syndicated loan facility | ||||||
Debt Disclosure [Line Items] | ||||||
Line of credit, maximum capacity | $ 1,000,000,000 | |||||
Line of credit, expiry date | 2018-06 | |||||
Expires in June 2021 | Syndicated loan facility | ||||||
Debt Disclosure [Line Items] | ||||||
Line of credit, maximum capacity | $ 1,000,000,000 | |||||
Line of credit, expiry date | 2021-06 | |||||
Expires in June 2022 | Syndicated loan facility | ||||||
Debt Disclosure [Line Items] | ||||||
Line of credit, maximum capacity | $ 1,000,000,000 | |||||
Line of credit, expiry date | 2022-06 | |||||
PACCAR's U.S. finance subsidiary | Medium-term Notes | ||||||
Debt Disclosure [Line Items] | ||||||
Debt outstanding | $ 4,450,000,000 | |||||
Registration expiration | 2018-11 | |||||
PACCAR's European finance subsidiary | Medium-term Notes | ||||||
Debt Disclosure [Line Items] | ||||||
Debt, unused borrowing capacity | € | € 1,343,600,000 | |||||
Debt, borrowing capacity | € | € 2,500,000,000 | |||||
Debt, renewal period | Annually through the filing of new listing particulars | |||||
PACCAR's Mexico finance subsidiary | Commercial Paper | ||||||
Debt Disclosure [Line Items] | ||||||
Maximum limit of borrowing capacity | MXN | MXN 5,000,000,000 | |||||
PACCAR's Mexico finance subsidiary | Commercial Paper | Maximum | ||||||
Debt Disclosure [Line Items] | ||||||
Commercial paper expiration period | 1 year | |||||
PACCAR's Mexico finance subsidiary | Medium-term Notes | ||||||
Debt Disclosure [Line Items] | ||||||
Registration expiration | 2021-04 | |||||
Debt, unused borrowing capacity | MXN | MXN 6,250,000,000 | |||||
PACCAR's Mexico finance subsidiary | Medium-term Notes | Commercial Paper | ||||||
Debt Disclosure [Line Items] | ||||||
Debt, borrowing capacity | MXN | MXN 10,000,000,000 | |||||
Financial Services | ||||||
Debt Disclosure [Line Items] | ||||||
Commercial paper and term notes borrowings | $ 8,669,200,000 | 8,270,200,000 | ||||
Fair value hedges and unamortized discounts, net | (20,900,000) | (19,300,000) | ||||
Truck, Parts and Other | ||||||
Debt Disclosure [Line Items] | ||||||
Capitalized interest | $ 0 | $ 0 | $ 0 |
Annual Maturities of Financial
Annual Maturities of Financial Services Borrowings (Detail) - Financial Services $ in Millions | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 4,475.7 |
2,019 | 1,813.2 |
2,020 | 1,685.1 |
2,021 | 626.3 |
2,022 | 300 |
Debt, Long-term and Short-term, Combined Amount, Total | 8,900.3 |
Medium-term Notes | |
Debt Instrument [Line Items] | |
2,018 | 1,693.1 |
2,019 | 1,785.4 |
2,020 | 1,610.3 |
2,021 | 575.8 |
2,022 | 300 |
Debt, Long-term and Short-term, Combined Amount, Total | 5,964.6 |
Notes Payable to Banks | |
Debt Instrument [Line Items] | |
2,018 | 57.1 |
2,019 | 27.8 |
2,020 | 74.8 |
2,021 | 50.5 |
2,022 | 0 |
Debt, Long-term and Short-term, Combined Amount, Total | 210.2 |
Commercial Paper | |
Debt Instrument [Line Items] | |
2,018 | 2,725.5 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Debt, Long-term and Short-term, Combined Amount, Total | $ 2,725.5 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases Future Minimum Payments Due [Abstract] | |||
Minimum lease payments for operating leases, in 2018 | $ 23 | ||
Minimum lease payments for operating leases, in 2019 | 14.6 | ||
Minimum lease payments for operating leases, in 2020 | 10.3 | ||
Minimum lease payments for operating leases, in 2021 | 6.5 | ||
Minimum lease payments for operating leases, in 2022 | 4.4 | ||
Minimum lease payments for operating leases, thereafter | 2.6 | ||
Rental expenses | $ 30.1 | $ 28.8 | $ 30.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions, $ in Millions | Jul. 19, 2016USD ($) | Jul. 19, 2016EUR (€) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Standby letters of credit and surety bonds | $ 26.3 | ||||||||
Outstanding commitments to fund new loan and lease transactions | $ 928.6 | ||||||||
Funding commitments for loans and leases expiration period | 90 days | ||||||||
Other commitments due in 2018 | $ 243.9 | ||||||||
Other commitments due in 2019 | 71.6 | ||||||||
Other commitments due in 2020 | 69.1 | ||||||||
Other commitments due in 2021 | 62.3 | ||||||||
Other commitments due in 2022 | 60.5 | ||||||||
Other commitments due in 2022 and beyond | 0 | ||||||||
Environmental activities expenditures | 1.9 | $ 2.2 | $ 2 | ||||||
Truck, Parts and Other | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
European Commission charge | $ (109.6) | $ 942.6 | $ 833 | € 752.7 | $ 0 | $ 833 | $ 0 | ||
Litigation settlement amount | $ 833 | € 752.7 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Severance Costs | $ 0.8 | $ 2 | $ 3.3 |
Metal and Electrical Engineering Industry Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual coverage ratio percentage | 101.50% | ||
Western Metal Industry Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by the Company | 7.00% | 8.00% | |
Minimum | Metal and Electrical Engineering Industry Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Required coverage ratio percentage | 104.30% | ||
Maximum | Metal and Electrical Engineering Industry Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by the Company | 5.00% | 5.00% | |
Maximum | Other Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by the Company | 5.00% | ||
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated unrecognized actuarial gains and losses | 10.00% | ||
Contribution to pension plans | $ 70.6 | $ 185.7 | |
Expected pension contributions minimum funding requirements | 21.2 | ||
Annual benefits expected to be paid year one | 84.4 | ||
Annual benefits expected to be paid year two | 87.1 | ||
Annual benefits expected to be paid year three | 94 | ||
Annual benefits expected to be paid year four | 99.9 | ||
Annual benefits expected to be paid year five | 106.2 | ||
Annual benefits expected to be paid for the five years thereafter | 609.7 | ||
Unrecognized actuarial loss amount in accumulated other comprehensive loss expected to be amortized next year | 30.4 | ||
Unrecognized prior service cost amount in accumulated other comprehensive loss expected to be amortized next year | 1.3 | ||
Accumulated benefit obligation for all pension plans of the Company | 2,492.4 | $ 2,215.3 | |
Estimated Decrease in Pension Expense for 2017 due to change of method used to estimate service cost and interest cost components of pension expense from a single weighted-average method to an individual spot rate approach | 15 | ||
Defined Benefit Pension Plans | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected pension contributions by the company to the pension plans in the next year | 70 | ||
Defined Benefit Pension Plans | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected pension contributions by the company to the pension plans in the next year | $ 100 | ||
Defined Contribution Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage match for base wages | 5.00% | 5.00% | 5.00% |
Defined contribution benefit plans expense | $ 37.9 | $ 34.1 | $ 36.1 |
Allocation of Plan Assets by In
Allocation of Plan Assets by Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 2,919.6 | $ 2,494.1 | $ 2,219 |
MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 2,351.4 | 2,013.1 | |
Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 232.5 | 204.5 | |
Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 335.7 | 276.5 | |
Fair Value Inputs Level 1 And Level 2 [Member] | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 568.2 | 481 | |
Equity Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 1,635.3 | $ 1,436.9 | |
Equity Funds | Minimum | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target | 50.00% | 50.00% | |
Equity Funds | Maximum | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target | 70.00% | 70.00% | |
Equity Funds | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 1,635.3 | $ 1,436.9 | |
Equity Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 768.5 | 690.8 | |
Equity Funds | United States | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 768.5 | 690.8 | |
Equity Funds | Global | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 866.8 | 746.1 | |
Equity Funds | Global | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 866.8 | 746.1 | |
Fixed Income Funds | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 1,204.3 | $ 984.5 | |
Fixed Income Funds | Minimum | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target | 30.00% | 30.00% | |
Fixed Income Funds | Maximum | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target | 50.00% | 50.00% | |
Fixed Income Funds | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 715.4 | $ 572.3 | |
Fixed Income Funds | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 877.5 | 710.4 | |
Fixed Income Funds | United States | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 416 | 317.8 | |
Fixed Income Funds | Non U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 326.8 | 274.1 | |
Fixed Income Funds | Non U.S. | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 299.4 | 254.5 | |
Fixed Income Funds | Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 223.3 | 195.7 | |
Fixed Income Funds | Level 1 | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 223.3 | 195.7 | |
Fixed Income Funds | Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 265.6 | 216.5 | |
Fixed Income Funds | Level 2 | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 238.2 | 196.9 | |
Fixed Income Funds | Level 2 | Non U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 27.4 | 19.6 | |
Fixed Income Funds | Fair Value Inputs Level 1 And Level 2 [Member] | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 488.9 | 412.2 | |
Fixed Income Funds | Fair Value Inputs Level 1 And Level 2 [Member] | United States | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 461.5 | 392.6 | |
Fixed Income Funds | Fair Value Inputs Level 1 And Level 2 [Member] | Non U.S. | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 27.4 | 19.6 | |
Cash and other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 80 | 72.7 | |
Cash and other | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 0.7 | 3.9 | |
Cash and other | Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 9.2 | 8.8 | |
Cash and other | Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 70.1 | 60 | |
Cash and other | Fair Value Inputs Level 1 And Level 2 [Member] | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 79.3 | $ 68.8 |
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, 2017 | Dec. 31, 2016 | |
Weighted average assumptions: | ||
Discount rate | 3.30% | 3.70% |
Rate of increase in future compensation levels | 3.90% | 3.90% |
Assumed long-term rate of return on plan assets | 6.40% | 6.40% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in projected benefit obligation: | |||
Benefit obligation, beginning balance | $ 2,505.6 | $ 2,306 | |
Service cost | 92.9 | 88.6 | $ 91.3 |
Interest cost | 81.1 | 94.3 | 92.2 |
Benefits paid | (82.6) | (80.2) | |
Actuarial loss | 154.7 | 186.4 | |
Currency translation and other | 68.6 | (90.6) | |
Participant contributions | 0.4 | 1.1 | |
Projected benefit obligation, ending balance | 2,820.7 | 2,505.6 | 2,306 |
Change in plan assets: | |||
Fair value of plan assets, beginning balance | 2,494.1 | 2,219 | |
Employer contributions | 70.6 | 185.7 | |
Actual return on plan assets | 369.8 | 254.5 | |
Benefits paid | (82.6) | (80.2) | |
Currency translation and other | 67.3 | (86) | |
Participant contributions | 0.4 | 1.1 | |
Fair value of plan assets, ending balance | 2,919.6 | 2,494.1 | $ 2,219 |
Funded status, ending balance | 98.9 | (11.5) | |
Amounts recorded on balance sheet: | |||
Other noncurrent assets | 228.9 | 107.2 | |
Other liabilities | 130 | 118.7 | |
Accumulated other comprehensive loss: | |||
Actuarial loss | 372.9 | 410.6 | |
Prior service cost | 2.6 | 3.4 | |
Net initial transition amount | $ 0.1 | $ 0.1 |
Information for All Plans with
Information for All Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 142.5 | $ 110.2 |
Accumulated benefit obligation | 124 | 100.4 |
Fair value of plan assets | $ 23.5 | $ 9.3 |
Components of Pension Expense (
Components of Pension Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 92.9 | $ 88.6 | $ 91.3 |
Interest on projected benefit obligation | 81.1 | 94.3 | 92.2 |
Expected return on assets | (159.7) | (141.7) | (140.8) |
Amortization of prior service costs | 1.2 | 1.2 | 1.3 |
Recognized actuarial loss | 25.4 | 27.7 | 41.1 |
Curtailment gain | (0.1) | ||
Net pension expense | $ 40.9 | $ 70.1 | $ 85 |
Multi-employer Plans (Detail)
Multi-employer Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Multiemployer Plans [Line Items] | |||
COMPANY CONTRIBUTIONS | $ 27.2 | $ 25.3 | $ 26 |
Metal and Electrical Engineering Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
PENSION PLAN NUMBER | 135,668 | ||
COMPANY CONTRIBUTIONS | $ 25 | 23.1 | 23 |
Western Metal Industry Pension Plan | |||
Multiemployer Plans [Line Items] | |||
PENSION PLAN NUMBER | 1 | ||
EIN | 916,033,499 | ||
COMPANY CONTRIBUTIONS | $ 1.4 | 1.5 | 2.1 |
Other Plans | |||
Multiemployer Plans [Line Items] | |||
COMPANY CONTRIBUTIONS | $ 0.8 | $ 0.7 | $ 0.9 |
Components of Income Before Inc
Components of Income Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 1,347.8 | $ 1,190.7 | $ 1,581.6 |
Foreign | 825.5 | (60.3) | 755.5 |
Income before income taxes | $ 2,173.3 | $ 1,130.4 | $ 2,337.1 |
Components of Provision for Inc
Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current provision: | |||
Federal | $ 397.7 | $ 322.9 | $ 521.8 |
State | 63.8 | 41.7 | 61.1 |
Foreign | 210.5 | 213.2 | 205.4 |
Current Income Tax Expense (Benefit), Total | 672 | 577.8 | 788.3 |
Deferred provision (benefit): | |||
Federal | (173.8) | 31.5 | (57.8) |
State | 2.3 | 4.8 | 5.3 |
Foreign | (2.4) | (5.4) | (2.7) |
Deferred taxes | (173.9) | 30.9 | (55.2) |
Income taxes | $ 498.1 | $ 608.7 | $ 733.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||||
Tax benefits recognized for net operating loss carryforwards | $ 4.3 | $ 1.2 | $ 0.6 | ||
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
Provisional amount of deferred tax benefits due to the Tax Act | $ 304 | ||||
Provisional amount of tax expense due to the Tax Act | 130.6 | ||||
Foreign earnings included in domestic taxable income | $ 180.4 | $ 249.7 | |||
Foreign earnings included in domestic taxable income, domestic taxes | 7.1 | 12.2 | |||
Net operating loss carryforwards | 399.4 | ||||
Deferred tax asset related to operating loss carryforwards | 94.6 | ||||
Valuation allowance | $ 118.6 | 64.5 | |||
Carryforward description | The carryforward periods range from three years to indefinite, subject to certain limitations under applicable laws. | ||||
Cash paid for income taxes | $ 661.4 | 499.4 | 879.7 | ||
Unrecognized tax benefits | 22.9 | 17.3 | 19.1 | $ 12 | |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 16.8 | 13.9 | 9.9 | ||
Income related to interest | 0.2 | 1.9 | 1.9 | ||
Accrued interest expense and penalties | 1.1 | $ 0.9 | $ 2.8 | ||
Unrecognized tax benefits, resulting primarily from intercompany transactions | $ 1.8 | ||||
Internal Revenue Service (IRS) | |||||
Income Taxes [Line Items] | |||||
Tax year remain subject to examination | 2,009 | ||||
Tax examinations | The United States Internal Revenue Service has completed examinations of the Company’s tax returns for all years through 2012, with the exception of 2009 which remains subject to examination. | ||||
Net Operating Loss Carryforwards | |||||
Income Taxes [Line Items] | |||||
Valuation allowance | $ 78.3 | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards periods | 3 years | ||||
Foreign | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 271.3 | ||||
United States | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 128.1 | ||||
Other Major Jurisdictions | Earliest Tax Year | |||||
Income Taxes [Line Items] | |||||
Tax year remain subject to examination | 2,008 | ||||
Other Major Jurisdictions | Latest Tax Year | |||||
Income Taxes [Line Items] | |||||
Tax year remain subject to examination | 2,017 | ||||
Scenario Forecast | |||||
Income Taxes [Line Items] | |||||
U.S. statutory income tax rate | 21.00% |
Reconciliation of Statutory U.S
Reconciliation of Statutory U.S. Federal Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
Rate change on deferred taxes | (14.00%) | ||
Transition tax | 6.00% | ||
Non-deductible EC charge | 25.80% | ||
State | 1.80% | 2.90% | 2.10% |
Federal domestic production deduction | (1.10%) | (2.60%) | (1.80%) |
Tax on foreign earnings | (4.00%) | (7.40%) | (2.70%) |
Other, net | (0.80%) | 0.10% | (1.20%) |
Effective income tax rate | 22.90% | 53.80% | 31.40% |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences Representing Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Accrued expenses | $ 183.9 | $ 239.2 |
Net operating loss and tax credit carryforwards | 102.1 | 84.4 |
Postretirement benefit plans | 11.7 | |
Allowance for losses on receivables | 35.6 | 41.2 |
Goodwill and intangibles | 34.4 | 1.3 |
Other | 89.2 | 105.1 |
Deferred Tax Assets, Gross, Total | 445.2 | 482.9 |
Valuation allowance | (118.6) | (64.5) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 326.6 | 418.4 |
Liabilities: | ||
Financial Services leasing depreciation | (608.2) | (808.7) |
Depreciation and amortization | (165.1) | (246.1) |
Postretirement benefit plans | (39.5) | |
Other | (28.8) | (35.3) |
Deferred Tax Liability, Total | (841.6) | (1,090.1) |
Net deferred tax liability | $ (515) | $ (671.7) |
Balance Sheet Classification of
Balance Sheet Classification of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Liabilities | $ (515) | $ (671.7) |
Truck, Parts and Other | Other Noncurrent Assets | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Assets Net | 71 | 119.5 |
Truck, Parts and Other | Other liabilities | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Liabilities | (1.9) | (6.3) |
Financial Services | Other Assets | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Assets Net | 45.2 | 74.6 |
Financial Services | Deferred Taxes And Other Liabilities | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Liabilities | $ (629.3) | $ (859.5) |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | $ 17.3 | $ 19.1 | $ 12 |
Additions for tax positions related to the current year | 5.6 | 3.9 | 10.3 |
Additions for tax positions related to prior years | 0 | 0 | |
Reductions for tax positions related to prior years | (0.3) | (2) | |
Reductions related to settlements | (5.4) | 0 | |
Lapse of statute of limitations | (1.2) | ||
Balance at the end of the year | $ 22.9 | $ 17.3 | $ 19.1 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 6,777.6 | $ 6,940.4 | |
Reclassified out of AOCI | 114.8 | 18.1 | $ 5.3 |
Net other comprehensive income (loss) | 334.5 | (111.1) | (437.2) |
Ending balance | 8,050.5 | 6,777.6 | 6,940.4 |
Derivative Contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (4.3) | (6.4) | (13.5) |
Recorded into AOCI | (91.6) | 0.2 | 27.9 |
Reclassified out of AOCI | 97.1 | 1.9 | (20.8) |
Net other comprehensive income (loss) | 5.5 | 2.1 | 7.1 |
Ending balance | 1.2 | (4.3) | (6.4) |
Marketable Debt Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (0.3) | 2.1 | 5.3 |
Recorded into AOCI | (1.1) | 0.3 | (1.7) |
Reclassified out of AOCI | (0.4) | (2.7) | (1.5) |
Net other comprehensive income (loss) | (1.5) | (2.4) | (3.2) |
Ending balance | (1.8) | (0.3) | 2.1 |
Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (414.1) | (390.4) | (433.1) |
Recorded into AOCI | 20.4 | (42.6) | 15.1 |
Reclassified out of AOCI | 18.1 | 18.9 | 27.6 |
Net other comprehensive income (loss) | 38.5 | (23.7) | 42.7 |
Ending balance | (375.6) | (414.1) | (390.4) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (709.4) | (622.3) | (138.5) |
Recorded into AOCI | 292 | (87.1) | (483.8) |
Net other comprehensive income (loss) | 292 | (87.1) | (483.8) |
Ending balance | (417.4) | (709.4) | (622.3) |
Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,128.1) | (1,017) | (579.8) |
Recorded into AOCI | 219.7 | (129.2) | (442.5) |
Reclassified out of AOCI | 114.8 | 18.1 | 5.3 |
Net other comprehensive income (loss) | 334.5 | (111.1) | (437.2) |
Ending balance | $ (793.6) | $ (1,128.1) | $ (1,017) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income before income taxes | $ (2,173.3) | $ (1,130.4) | $ (2,337.1) | ||||||||
Tax (benefit) expense | 498.1 | 608.7 | 733.1 | ||||||||
Net Income (Loss) | $ (589.2) | $ (402.7) | $ (373) | $ (310.3) | $ (288.8) | $ (346.2) | $ (481.3) | $ 594.6 | (1,675.2) | (521.7) | (1,604) |
Investment income | (35.3) | (27.6) | (21.8) | ||||||||
Total reclassifications out of AOCI | 114.8 | 18.1 | 5.3 | ||||||||
Derivative Contracts | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total reclassifications out of AOCI | 97.1 | 1.9 | (20.8) | ||||||||
Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income before income taxes | 133.4 | 10.8 | (29.3) | ||||||||
Tax (benefit) expense | (36.3) | (8.9) | 8.5 | ||||||||
Net Income (Loss) | 97.1 | 1.9 | (20.8) | ||||||||
Marketable Debt Securities | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total reclassifications out of AOCI | (0.4) | (2.7) | (1.5) | ||||||||
Marketable Debt Securities | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Tax (benefit) expense | 0.2 | 1 | 0.6 | ||||||||
Net Income (Loss) | (0.4) | (2.7) | (1.5) | ||||||||
Investment income | (0.6) | (3.7) | (2.1) | ||||||||
Pension Plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total reclassifications out of AOCI | 18.1 | 18.9 | 27.6 | ||||||||
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income before income taxes | 26.6 | 28.9 | 42.4 | ||||||||
Tax (benefit) expense | (8.5) | (10) | (14.8) | ||||||||
Net Income (Loss) | 18.1 | 18.9 | 27.6 | ||||||||
Truck, Parts and Other | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net sales and revenues | (5,122.4) | (4,731.5) | (4,397.9) | (3,935.7) | (3,767) | (3,953.2) | (4,115.8) | (4,010.6) | (18,187.5) | (15,846.6) | (17,942.8) |
Cost of sales and revenues | 4,409.5 | 4,046.8 | 3,755.2 | 3,382.2 | 3,243.2 | 3,371.5 | 3,489.4 | 3,413.6 | 15,593.7 | 13,517.7 | 15,292.1 |
Interest and other expense, net | 5.6 | 11.6 | 12.3 | ||||||||
Income before income taxes | (1,874) | (796.3) | (1,952.7) | ||||||||
Selling, general and administrative | 449.5 | 440.8 | 445.9 | ||||||||
Truck, Parts and Other | Derivative Contracts | Foreign-exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net sales and revenues | 12.1 | (27.9) | (0.1) | ||||||||
Cost of sales and revenues | 3.9 | 0.6 | 3.4 | ||||||||
Interest and other expense, net | 1.8 | 1.3 | (4.1) | ||||||||
Truck, Parts and Other | Derivative Contracts | Interest-Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net sales and revenues | 0 | 0 | 0 | ||||||||
Cost of sales and revenues | 0 | 0 | 0 | ||||||||
Interest and other expense, net | 0 | 0 | 0 | ||||||||
Truck, Parts and Other | Actuarial loss | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Cost of sales and revenues | 12.3 | 13.6 | 22.4 | ||||||||
Income before income taxes | 24.6 | 26.6 | 39.5 | ||||||||
Selling, general and administrative | 12.3 | 13 | 17.1 | ||||||||
Truck, Parts and Other | Prior service costs | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Cost of sales and revenues | 1 | 0.9 | 1 | ||||||||
Income before income taxes | 1.2 | 1.2 | 1.2 | ||||||||
Selling, general and administrative | 0.2 | 0.3 | 0.2 | ||||||||
Financial Services | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Interest and other borrowing expenses | $ 39.8 | $ 38.3 | $ 37.4 | $ 34.1 | $ 32.1 | $ 32.2 | $ 32.6 | $ 30.3 | 149.6 | 127.2 | 118 |
Income before income taxes | (264) | (306.5) | (362.6) | ||||||||
Selling, general and administrative | 105.5 | 99.4 | 95.6 | ||||||||
Financial Services | Foreign-exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income before income taxes | 17.8 | (26) | (0.8) | ||||||||
Financial Services | Interest-Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income before income taxes | 115.6 | 36.8 | (28.5) | ||||||||
Financial Services | Derivative Contracts | Foreign-exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Interest and other borrowing expenses | 0 | 0 | 0 | ||||||||
Financial Services | Derivative Contracts | Interest-Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Interest and other borrowing expenses | 115.6 | 36.8 | (28.5) | ||||||||
Financial Services | Actuarial loss | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Selling, general and administrative | $ 0.8 | $ 1.1 | $ 1.7 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - TREASURY STOCK, AT COST: - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Treasury stock, shares retired | 0 | 1,400 | 4,600 |
Purchases, shares | 0 | 1,380 | 3,850 |
Derivative Financial Instrume94
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow Hedging | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Maximum length of future cash flow hedges | 9 years 7 months 6 days | ||
Recognized gain and losses on the ineffective portion | $ 0 | $ 0 | $ 0 |
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 | 3,700,000 | ||
Gain (losses) reclassified out of AOCI into net income based on the probability that the original forecasted transaction would not occur | 0 | $ (300,000) | $ 0 |
Interest-Rate Contracts | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Notional amount of outstanding contracts | 2,878,400,000 | ||
Notional maturities for interest-rate contracts 2018 | 978,500,000 | ||
Notional maturities for interest-rate contracts 2019 | 911,200,000 | ||
Notional maturities for interest-rate contracts 2020 | 436,900,000 | ||
Notional maturities for interest-rate contracts 2021 | 392,300,000 | ||
Notional maturities for interest-rate contracts 2022 | 126,800,000 | ||
Notional maturities for interest-rate contracts thereafter | 32,700,000 | ||
Foreign-exchange contracts | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount outstanding | $ 480,400,000 | ||
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, 2017 | Dec. 31, 2016 |
ASSETS | ||
Derivative assets | $ 57.8 | $ 118.4 |
Pro forma net amount | 48.7 | 101.9 |
LIABILITIES | ||
Derivative liabilities | 103 | 49.3 |
Pro forma net amount | 93.9 | 32.8 |
Interest-Rate Contracts | Financial Services | ||
ASSETS | ||
Less amounts not offset in financial instruments | (8.7) | (15.4) |
LIABILITIES | ||
Less amounts not offset in financial instruments | (8.7) | (15.4) |
Foreign-exchange contracts | Financial Services | ||
ASSETS | ||
Less amounts not offset in financial instruments | (0.1) | |
LIABILITIES | ||
Less amounts not offset in financial instruments | (0.1) | |
Foreign-exchange contracts | Truck, Parts and Other | ||
ASSETS | ||
Less amounts not offset in financial instruments | (0.4) | (1) |
LIABILITIES | ||
Less amounts not offset in financial instruments | (0.4) | (1) |
Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other | ||
LIABILITIES | ||
Derivative liabilities | 0.6 | 0.3 |
Designated under hedge accounting | ||
ASSETS | ||
Derivative assets | 57.1 | 113.6 |
LIABILITIES | ||
Derivative liabilities | 100.2 | 48.2 |
Designated under hedge accounting | Interest-Rate Contracts | Other Assets | ||
ASSETS | ||
Derivative assets | 53.3 | |
Designated under hedge accounting | Interest-Rate Contracts | Financial Services | Other Assets | ||
ASSETS | ||
Derivative assets | 53.3 | 109.7 |
Designated under hedge accounting | Interest-Rate Contracts | Financial Services | Deferred Taxes And Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 98.3 | 46.3 |
Designated under hedge accounting | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ||
ASSETS | ||
Derivative assets | 3.8 | 3.9 |
Designated under hedge accounting | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other | ||
LIABILITIES | ||
Derivative liabilities | 1.9 | 1.9 |
Economic hedge | ||
ASSETS | ||
Derivative assets | 0.7 | 4.8 |
LIABILITIES | ||
Derivative liabilities | 2.8 | 1.1 |
Economic hedge | Interest-Rate Contracts | Financial Services | Deferred Taxes And Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 0.1 | |
Economic hedge | Foreign-exchange contracts | Financial Services | Other Assets | ||
ASSETS | ||
Derivative assets | 0.1 | 4 |
Economic hedge | Foreign-exchange contracts | Financial Services | Deferred Taxes And Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 2.2 | 0.7 |
Economic hedge | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ||
ASSETS | ||
Derivative assets | $ 0.6 | $ 0.8 |
(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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Interest-rate swaps | $ 2.3 | $ 5.5 | $ (0.9) |
Term notes | $ (1.5) | $ (6.4) | $ 0.2 |
Pre-Tax Effects of Derivative I
Pre-Tax Effects of Derivative Instruments Recognized in OCI (Detail) - Derivative Contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest-Rate Contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | $ (108.1) | $ (30.9) | $ 33.8 |
Foreign-exchange contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | (17.4) | 24.4 | 4.9 |
Truck, Parts and Other | Foreign-exchange contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | (17.4) | 24.4 | 4.9 |
Financial Services | Interest-Rate Contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | $ (108.1) | $ (30.9) | $ 33.8 |
Expense (Income) Reclassified o
Expense (Income) Reclassified out of AOCI into Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||||||||
Income before income taxes | $ (2,173.3) | $ (1,130.4) | $ (2,337.1) | ||||||||
Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative [Line Items] | |||||||||||
Income before income taxes | 133.4 | 10.8 | (29.3) | ||||||||
Truck, Parts and Other | |||||||||||
Derivative [Line Items] | |||||||||||
Net sales and revenues | $ (5,122.4) | $ (4,731.5) | $ (4,397.9) | $ (3,935.7) | $ (3,767) | $ (3,953.2) | $ (4,115.8) | $ (4,010.6) | (18,187.5) | (15,846.6) | (17,942.8) |
Cost of sales and revenues | 4,409.5 | 4,046.8 | 3,755.2 | 3,382.2 | 3,243.2 | 3,371.5 | 3,489.4 | 3,413.6 | 15,593.7 | 13,517.7 | 15,292.1 |
Interest and other expense, net | 5.6 | 11.6 | 12.3 | ||||||||
Income before income taxes | (1,874) | (796.3) | (1,952.7) | ||||||||
Financial Services | |||||||||||
Derivative [Line Items] | |||||||||||
Interest and other borrowing expenses | $ 39.8 | $ 38.3 | $ 37.4 | $ 34.1 | $ 32.1 | $ 32.2 | $ 32.6 | $ 30.3 | 149.6 | 127.2 | 118 |
Income before income taxes | (264) | (306.5) | (362.6) | ||||||||
Interest-Rate Contracts | Truck, Parts and Other | Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative [Line Items] | |||||||||||
Net sales and revenues | 0 | 0 | 0 | ||||||||
Cost of sales and revenues | 0 | 0 | 0 | ||||||||
Interest and other expense, net | 0 | 0 | 0 | ||||||||
Interest-Rate Contracts | Financial Services | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative [Line Items] | |||||||||||
Income before income taxes | 115.6 | 36.8 | (28.5) | ||||||||
Interest-Rate Contracts | Financial Services | Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative [Line Items] | |||||||||||
Interest and other borrowing expenses | 115.6 | 36.8 | (28.5) | ||||||||
Foreign-exchange contracts | Truck, Parts and Other | Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative [Line Items] | |||||||||||
Net sales and revenues | 12.1 | (27.9) | (0.1) | ||||||||
Cost of sales and revenues | 3.9 | 0.6 | 3.4 | ||||||||
Interest and other expense, net | 1.8 | 1.3 | (4.1) | ||||||||
Foreign-exchange contracts | Financial Services | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative [Line Items] | |||||||||||
Income before income taxes | 17.8 | (26) | (0.8) | ||||||||
Foreign-exchange contracts | Financial Services | Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Derivative [Line Items] | |||||||||||
Interest and other borrowing expenses | $ 0 | $ 0 | $ 0 |
Expenses (Income) Recognized in
Expenses (Income) Recognized in Earnings Related to Foreign-Exchange Contracts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest-Rate Contracts | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | $ (0.1) | $ 0.1 | $ 0 |
Interest-Rate Contracts | Cost of sales and revenues | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 0 | 0 | 0 |
Interest-Rate Contracts | Interest and other expense, net | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 0 | 0 | 0 |
Interest-Rate Contracts | Truck, Parts and Other | Net sales and revenues | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 0 | 0 | 0 |
Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | (0.1) | 0.1 | 0 |
Interest-Rate Contracts | Financial Services | Selling, general and administrative | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 0 | 0 | 0 |
Foreign-exchange contracts | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 52 | (11.7) | (7.6) |
Foreign-exchange contracts | Cost of sales and revenues | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 0.3 | 0.4 | (0.7) |
Foreign-exchange contracts | Interest and other expense, net | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 2.1 | 14.9 | 3 |
Foreign-exchange contracts | Truck, Parts and Other | Net sales and revenues | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 0 | (0.4) | 0 |
Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | 49.1 | (28.4) | (7.6) |
Foreign-exchange contracts | Financial Services | Selling, general and administrative | |||
Derivative [Line Items] | |||
(Income) Expense recognized in earnings | $ 0.5 | $ 1.8 | $ (2.3) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 31, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value of assets, transfers from Level 1 to Level 2 | $ 0 |
Fair value of assets, transfers from Level 2 to Level 1 | 0 |
Fair value of liabilities, transfers from Level 1 to Level 2 | 0 |
Fair value of liabilities, transfers from Level 2 to Level 1 | $ 0 |
Financial Assets and Liabilitie
Financial Assets and Liabilities Subject to Recurring Fair Value Measurements (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 57.8 | $ 118.4 |
Derivative liabilities | 103 | 49.3 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 1,367.1 | 1,140.9 |
Derivative assets | 57.8 | 118.4 |
Derivative liabilities | 103 | 49.3 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 48.7 | 15.4 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 1,318.4 | 1,125.5 |
Derivative assets | 57.8 | 118.4 |
Derivative liabilities | 103 | 49.3 |
Fair Value, Measurements, Recurring | Cross currency swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 44.2 | 102.7 |
Derivative liabilities | 93 | 37.1 |
Fair Value, Measurements, Recurring | Cross currency swaps | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Cross currency swaps | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 44.2 | 102.7 |
Derivative liabilities | 93 | 37.1 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 9.1 | 7 |
Derivative liabilities | 5.3 | 9.3 |
Fair Value, Measurements, Recurring | Interest-rate swaps | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Interest-rate swaps | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 9.1 | 7 |
Derivative liabilities | 5.3 | 9.3 |
Fair Value, Measurements, Recurring | Foreign-exchange contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 4.5 | 8.7 |
Derivative liabilities | 4.7 | 2.9 |
Fair Value, Measurements, Recurring | Foreign-exchange contracts | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign-exchange contracts | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 4.5 | 8.7 |
Derivative liabilities | 4.7 | 2.9 |
U.S. tax-exempt securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 535.5 | 595 |
U.S. tax-exempt securities | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 0 | 0 |
U.S. tax-exempt securities | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 535.5 | 595 |
U.S. corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 89.7 | 47.8 |
U.S. corporate securities | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 0 | 0 |
U.S. corporate securities | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 89.7 | 47.8 |
U.S. government and agency securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 48.7 | 16 |
U.S. government and agency securities | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 48.7 | 15.4 |
U.S. government and agency securities | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 0 | 0.6 |
Non-U.S. corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 459.3 | 308 |
Non-U.S. corporate securities | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 0 | 0 |
Non-U.S. corporate securities | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 459.3 | 308 |
Non-U.S. government securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 91.7 | 98.2 |
Non-U.S. government securities | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 0 | 0 |
Non-U.S. government securities | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 91.7 | 98.2 |
Other debt securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 142.2 | 75.9 |
Other debt securities | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | 0 | 0 |
Other debt securities | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities | $ 142.2 | $ 75.9 |
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, 2017 | Dec. 31, 2016 |
Assets, carrying amount | ||
Fixed-rate loans | $ 3,793.8 | $ 3,607.4 |
Liabilities, carrying amount | ||
Fixed-rate debt | 5,397.6 | 4,915.2 |
Assets, Fair Value | ||
Fixed-rate loans | 3,804.8 | 3,638.4 |
Liabilities, Fair Value | ||
Fixed-rate debt | $ 5,387 | $ 4,929.3 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of option granted | $ 6.4 | $ 6 | $ 6.3 |
Fair value of option vested | 5.2 | $ 7.8 | $ 9.5 |
Unrecognized compensation cost related to unvested stock | $ 5.5 | ||
Recognized over a remaining weighted-average vesting period (year) | 1 year 5 months 12 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 | $ 1.9 | ||
Recognized over a remaining weighted-average vesting period (year) | 1 year 3 months 21 days | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Stock Options and Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock authorized for issuance | 46,700,000 | ||
Shares available for future grants | 14,000,000 |
Values of Option on Stock Price
Values of Option on Stock Price at Grant Date and Assumption (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 1.97% | 1.37% | 1.35% |
Expected volatility | 23.00% | 26.00% | 28.00% |
Expected dividend yield | 3.10% | 4.00% | 3.40% |
Expected term | 5 years | 5 years | 5 years |
Weighted average grant date fair value of options per share | $ 10.56 | $ 7.51 | $ 10.98 |
Summary of Activity Under Stock
Summary of Activity Under Stock Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic value of options exercised | $ 22 | $ 10.4 | $ 14.1 |
Cash received from stock option exercises | 40 | 29.4 | 21.8 |
Tax benefit related to stock award exercises | 4.9 | 1 | 3.5 |
Stock based compensation | 12.7 | 13.1 | 14.6 |
Tax benefit related to stock based compensation | $ 4.6 | $ 4.7 | $ 5.1 |
Summary of Options (Detail)
Summary of Options (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / sharesshares | ||
NUMBER OF SHARES | ||
Options outstanding, beginning balance | shares | 4,466,900 | |
Granted | shares | 605,300 | |
Exercised | shares | (895,100) | |
Cancelled | shares | (120,900) | |
Options outstanding, ending balance | shares | 4,056,200 | |
Vested and expected to vest, end of period | shares | 3,949,100 | |
Exercisable, end of period | shares | 2,295,200 | |
PER SHARE EXERCISE PRICE | ||
Options outstanding, beginning balance | $ / shares | $ 48.15 | [1] |
Granted | $ / shares | 67.63 | [1] |
Exercised | $ / shares | 44.74 | [1] |
Cancelled | $ / shares | 56.28 | [1] |
Options outstanding, ending balance | $ / shares | 51.57 | [1] |
Vested and expected to vest, end of period | $ / shares | 51.31 | [1] |
Exercisable, end of period | $ / shares | $ 45.79 | [1] |
REMAINING CONTRACTUAL LIFE IN YEARS | ||
Options outstanding, ending balance | 5 years 8 months 23 days | [1] |
Vested and expected to vest, end of period | 5 years 7 months 24 days | [1] |
Exercisable, end of period | 3 years 10 months 3 days | [1] |
AGGREGATE INTRINSIC VALUE | ||
Options outstanding, ending balance | $ | $ 79.1 | |
Vested and expected to vest, end of period | $ | 78.1 | |
Exercisable, end of period | $ | $ 58 | |
[1] | Weighted Average |
Summary of Nonvested Restricted
Summary of Nonvested Restricted Shares Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended | |
Dec. 31, 2017$ / sharesshares | ||
GRANT DATE FAIR VALUE | ||
Nonvested awards outstanding, beginning balance | $ / shares | $ 55.27 | [1] |
Granted | $ / shares | 67.48 | [1] |
Vested | $ / shares | 59.24 | [1] |
Nonvested awards outstanding, ending balance | $ / shares | $ 60.16 | [1] |
NONVESTED NUMBER OF SHARES | ||
Nonvested awards outstanding, beginning balance | shares | 198,400 | |
Granted | shares | 119,200 | |
Vested | shares | (105,900) | |
Nonvested awards outstanding, ending balance | shares | 211,700 | |
[1] | Weighted Average |
Dilutive and Antidilutive Optio
Dilutive and Antidilutive Options (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Additional shares | 1,038,400 | 694,700 | 906,100 |
Antidilutive options | 696,400 | 1,943,500 | 1,180,400 |
Segment and Related Informat109
Segment and Related Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||
Reportable segments | Segment | 3 | ||
Investment income | $ 35.3 | $ 27.6 | $ 21.8 |
Other Segments | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Investment income | $ 0.4 | $ 0.5 |
Geographical Area Data Recorded
Geographical Area Data Recorded to Consolidated (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net sales and revenues | $ 19,456.4 | $ 17,033.3 | $ 19,115.1 |
Property, plant and equipment, net | 2,464.4 | 2,260 | 2,176.4 |
Equipment on operating leases, net | 4,142 | 3,637.8 | 3,373 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 10,530.1 | 9,221.3 | 11,408.3 |
Property, plant and equipment, net | 1,238.1 | 1,187 | 1,140.5 |
Equipment on operating leases, net | 1,530.8 | 1,458 | 1,287.9 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 5,354.6 | 4,903.3 | 4,515.9 |
Other Countries | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,571.7 | 2,908.7 | 3,190.9 |
Property, plant and equipment, net | 761.8 | 666.3 | 597.2 |
Equipment on operating leases, net | 1,566.9 | 1,247 | 1,111.9 |
The Netherlands | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 464.5 | 406.7 | 438.7 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 385.1 | 318.3 | 321.9 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 343.1 | 309.7 | 321.3 |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | $ 316.1 | $ 304.8 | $ 330 |
Segment Reporting Information b
Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | $ 19,456.4 | $ 17,033.3 | $ 19,115.1 | |||||||||
Income before income taxes | 2,173.3 | 1,130.4 | 2,337.1 | |||||||||
Investment income | 35.3 | 27.6 | 21.8 | |||||||||
Depreciation and amortization | 1,107.5 | 993.1 | 907.1 | |||||||||
Expenditures for long-lived assets | 1,855.1 | 1,992.4 | 1,747 | |||||||||
Assets | $ 23,440.2 | $ 20,638.9 | 23,440.2 | 20,638.9 | 21,109.8 | |||||||
Truck, Parts and Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | 5,122.4 | $ 4,731.5 | $ 4,397.9 | $ 3,935.7 | 3,767 | $ 3,953.2 | $ 4,115.8 | $ 4,010.6 | 18,187.5 | 15,846.6 | 17,942.8 | |
Income before income taxes | 1,874 | 796.3 | 1,952.7 | |||||||||
Depreciation and amortization | 494.4 | 455.9 | 420.9 | |||||||||
Expenditures for long-lived assets | 847.1 | 778 | 702.6 | |||||||||
Assets | 10,237.9 | 8,444.1 | 10,237.9 | 8,444.1 | 8,855.2 | |||||||
Cash and marketable securities | 3,621.9 | 2,922.6 | 3,621.9 | 2,922.6 | 3,378 | |||||||
Truck, Parts and Other | Trucks | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | 14,774.8 | 12,767.3 | 14,782.5 | |||||||||
Income before income taxes | 1,296.9 | 1,125.8 | 1,440.3 | |||||||||
Depreciation and amortization | 468.2 | 432.8 | 399.8 | |||||||||
Expenditures for long-lived assets | 769.7 | 735.6 | 660 | |||||||||
Assets | 5,159.7 | 4,429.4 | 5,159.7 | 4,429.4 | 4,472.3 | |||||||
Truck, Parts and Other | Trucks | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | 15,543.7 | 13,652.7 | 15,568.6 | |||||||||
Truck, Parts and Other | Trucks | Intersegment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | (768.9) | (885.4) | (786.1) | |||||||||
Truck, Parts and Other | Parts | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | 3,327 | 3,005.7 | 3,060.1 | |||||||||
Income before income taxes | 614.2 | 543.8 | 555.6 | |||||||||
Depreciation and amortization | 8.1 | 7.3 | 6.2 | |||||||||
Expenditures for long-lived assets | 23.4 | 16.9 | 24.9 | |||||||||
Assets | 950.7 | 805.1 | 950.7 | 805.1 | 793.3 | |||||||
Truck, Parts and Other | Parts | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | 3,380.2 | 3,052.9 | 3,104.7 | |||||||||
Truck, Parts and Other | Parts | Intersegment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | (53.2) | (47.2) | (44.6) | |||||||||
Truck, Parts and Other | Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | 85.7 | 73.6 | 100.2 | |||||||||
Income before income taxes | [1] | (37.1) | (873.3) | (43.2) | ||||||||
Depreciation and amortization | 18.1 | 15.8 | 14.9 | |||||||||
Expenditures for long-lived assets | 54 | 25.5 | 17.7 | |||||||||
Assets | 505.6 | 287 | 505.6 | 287 | 211.6 | |||||||
Financial Services | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales and revenues | 332.2 | $ 328.2 | $ 306.3 | $ 302.2 | 303.7 | $ 296.2 | $ 297.4 | $ 289.4 | 1,268.9 | 1,186.7 | 1,172.3 | |
Income before income taxes | 264 | 306.5 | 362.6 | |||||||||
Depreciation and amortization | 613.1 | 537.2 | 486.2 | |||||||||
Expenditures for long-lived assets | 1,008 | 1,214.4 | 1,044.4 | |||||||||
Assets | $ 13,202.3 | $ 12,194.8 | $ 13,202.3 | $ 12,194.8 | $ 12,254.6 | |||||||
[1] | Other includes the $833.0 European Commission charge in 2016. |
Segment Reporting Informatio112
Segment Reporting Information by Segment (Parenthetical) (Detail) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Truck, Parts and Other | |||||||
Segment Reporting Information [Line Items] | |||||||
European Commission charge | $ (109.6) | $ 942.6 | $ 833 | € 752.7 | $ 0 | $ 833 | $ 0 |
Quarterly Results (Unaudited113
Quarterly Results (Unaudited) (Detail) $ / shares in Units, € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | ||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||
Net income | $ 589.2 | $ 402.7 | $ 373 | $ 310.3 | $ 288.8 | $ 346.2 | $ 481.3 | $ (594.6) | $ 1,675.2 | $ 521.7 | $ 1,604 | |||||||
Adjusted Net Income | [1] | $ 415.8 | $ 0 | $ 0 | $ 0 | $ 371.7 | $ 348 | |||||||||||
Net Income Per Share | ||||||||||||||||||
Basic | $ / shares | $ 1.67 | [2] | $ 1.14 | [2] | $ 1.06 | [2] | $ 0.88 | [2] | $ 0.82 | $ 0.99 | $ 1.37 | $ (1.69) | $ 4.76 | $ 1.49 | $ 4.52 | |||
Diluted | $ / shares | 1.67 | [2] | 1.14 | [2] | 1.06 | [2] | 0.88 | [2] | $ 0.82 | $ 0.98 | 1.37 | (1.69) | $ 4.75 | $ 1.48 | $ 4.51 | |||
Adjusted Diluted | $ / shares | [1] | $ 1.18 | [2] | $ 0 | [2] | $ 0 | [2] | $ 0 | [2] | $ 1.06 | $ 0.99 | |||||||
Truck, Parts and Other | ||||||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||
Net sales and revenues | $ 5,122.4 | $ 4,731.5 | $ 4,397.9 | $ 3,935.7 | $ 3,767 | $ 3,953.2 | $ 4,115.8 | $ 4,010.6 | $ 18,187.5 | $ 15,846.6 | $ 17,942.8 | |||||||
Cost of sales and revenues | 4,409.5 | 4,046.8 | 3,755.2 | 3,382.2 | 3,243.2 | 3,371.5 | 3,489.4 | 3,413.6 | 15,593.7 | 13,517.7 | 15,292.1 | |||||||
Research and development | 70.6 | 67 | 66.1 | 61 | 67.6 | 59.2 | 60.8 | 59.6 | 264.7 | 247.2 | 239.8 | |||||||
European Commission charge | (109.6) | 942.6 | $ 833 | € 752.7 | 0 | 833 | 0 | |||||||||||
Financial Services | ||||||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||
Revenues | 332.2 | 328.2 | 306.3 | 302.2 | 303.7 | 296.2 | 297.4 | 289.4 | 1,268.9 | 1,186.7 | 1,172.3 | |||||||
Interest and other borrowing expenses | 39.8 | 38.3 | 37.4 | 34.1 | 32.1 | 32.2 | 32.6 | 30.3 | 149.6 | 127.2 | 118 | |||||||
Depreciation and other expenses | $ 188.8 | $ 186.2 | $ 172.8 | $ 179.7 | $ 165.3 | $ 162.6 | $ 156.4 | $ 150.9 | $ 727.5 | $ 635.2 | $ 583.7 | |||||||
[1] | See Reconciliation of GAAP to Non-GAAP Financial Measures for 2017 and 2016 on page 33. | |||||||||||||||||
[2] | The sum of quarterly per share amounts may not equal per share amounts reported for year-to-date periods. This is due to changes in the number of weighted shares outstanding and the effects of rounding for each period. |