Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PACCAR Inc | ||
Entity Central Index Key | 0000075362 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 346,936,820 | ||
Entity Public Float | $ 25,440 | ||
Entity File Number | 001-14817 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 91-0351110 | ||
Entity Address, Address Line One | 777 - 106th Ave. N.E. | ||
Entity Address, City or Town | Bellevue | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98004 | ||
City Area Code | 425 | ||
Local Phone Number | 468-7400 | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
ICFR Auditor Attestation Flag | true | ||
Title of Each Class | Common Stock, $1 par value | ||
Trading Symbol | PCAR | ||
Name of Each Exchange on Which Registered | NASDAQ | ||
Documents Incorporated by Reference | Portions of the proxy statement for the annual stockholders meeting to be held on April 27, 2021 are incorporated by reference into Part III . |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 18,728.5 | $ 25,599.7 | $ 23,495.7 |
Provision for losses on receivables | 28.8 | 15.4 | 16.5 |
Investment income | 35.9 | 82.3 | 60.9 |
Income before income taxes | 1,657.9 | 3,099.2 | 2,810.2 |
Income taxes | 359.5 | 711.3 | 615.1 |
Net Income | $ 1,298.4 | $ 2,387.9 | $ 2,195.1 |
Net Income Per Share | |||
Basic | $ 3.74 | $ 6.88 | $ 6.25 |
Diluted | $ 3.74 | $ 6.87 | $ 6.24 |
Weighted Average Number of Common Shares Outstanding | |||
Basic | 346.8 | 346.9 | 351 |
Diluted | 347.4 | 347.5 | 351.8 |
Truck, Parts and Other | |||
Net sales and revenues | $ 17,154.3 | $ 24,119.7 | $ 22,138.6 |
Cost of sales and revenues | 15,076.4 | 20,555.6 | 18,925 |
Research and development | 273.9 | 326.6 | 306.1 |
Selling, general and administrative | 459.2 | 561.5 | 524.9 |
Interest and other (income), net | (54.1) | (42) | (60.8) |
Costs and Expenses, Total | 15,755.4 | 21,401.7 | 19,695.2 |
Income before income taxes | 1,398.9 | 2,718 | 2,443.4 |
Financial Services | |||
Interest and fees | 527.4 | 583 | 497.7 |
Operating lease, rental and other revenues | 1,046.8 | 897 | 859.4 |
Revenues | 1,574.2 | 1,480 | 1,357.1 |
Interest and other borrowing expenses | 192.1 | 230.5 | 186.9 |
Depreciation and other expenses | 1,008 | 798.2 | 728 |
Selling, general and administrative | 122.2 | 137 | 119.8 |
Provision for losses on receivables | 28.8 | 15.4 | 16.5 |
Costs and Expenses, Total | 1,351.1 | 1,181.1 | 1,051.2 |
Income before income taxes | $ 223.1 | $ 298.9 | $ 305.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 1,298.4 | $ 2,387.9 | $ 2,195.1 |
Unrealized (losses) gains on derivative contracts | |||
Net (loss) gain arising during the period | (105.3) | (76.1) | 121.6 |
Tax effect | 26.9 | 19.1 | (30.7) |
Reclassification adjustment | 87.6 | 51.7 | (121.5) |
Tax effect | (23.1) | (12) | 31 |
Net current period OCI, unrealized gains and (losses) on derivative contracts | (13.9) | (17.3) | 0.4 |
Unrealized gains on marketable debt securities | |||
Net holding gain | 13.6 | 11.6 | 0.2 |
Tax effect | (3.3) | (2.9) | (0.1) |
Reclassification adjustment | (2.4) | (0.4) | (0.2) |
Tax effect | 0.6 | 0.1 | 0.1 |
Net current period OCI, unrealized gains on marketable debt securities | 8.5 | 8.4 | |
Pension plans | |||
Net loss arising during the period | (132.4) | (74.8) | (114) |
Tax effect | 28.4 | 18 | 27.2 |
Reclassification adjustment | 57.3 | 21.9 | 36.7 |
Tax effect | (13.7) | (5) | (8.7) |
Net current period OCI, pension plans | (60.4) | (39.9) | (58.8) |
Foreign currency translation gain (loss) | 115.6 | 47.2 | (213.3) |
Net other comprehensive income (loss) | 49.8 | (1.6) | (271.7) |
Comprehensive Income | $ 1,348.2 | $ 2,386.3 | $ 1,923.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Equipment on operating leases, net | $ 3,584.7 | $ 3,648.1 |
Property, plant and equipment, net | 3,270.4 | 2,883.8 |
Total Assets | 28,260 | 28,361.1 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, no par value - authorized 1.0 million shares, none issued | ||
Common stock, $1 par value - authorized 1.2 billion shares; issued 346.6 million and 346.3 million shares | 346.6 | 346.3 |
Additional paid-in capital | 88.5 | 61.4 |
Retained earnings | 11,005.2 | 10,398.5 |
Accumulated other comprehensive loss | (1,050.3) | (1,100.1) |
Total Stockholders’ Equity | 10,390 | 9,706.1 |
Liabilities and Equity, Total | 28,260 | 28,361.1 |
Truck, Parts and Other | ||
ASSETS | ||
Cash and cash equivalents | 3,405 | 4,007.3 |
Trade and other receivables, net (allowance for losses: 2020 - $.6, 2019 - $.6) | 1,197.5 | 1,306.1 |
Marketable debt securities (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 1,429 | 1,162.1 |
Inventories, net | 1,221.9 | 1,153.2 |
Other current assets | 515.6 | 388 |
Total Truck, Parts and Other Current Assets | 7,769 | 8,016.7 |
Equipment on operating leases, net | 421.9 | 545.5 |
Property, plant and equipment, net | 3,270.4 | 2,883.8 |
Other noncurrent assets, net | 998.9 | 843.7 |
Total Assets | 12,460.2 | 12,289.7 |
Liabilities | ||
Accounts payable, accrued expenses and other | 3,413.9 | 3,194.2 |
Dividend payable | 242.6 | 796.5 |
Total Truck, Parts and Other Current Liabilities | 3,656.5 | 3,990.7 |
Residual value guarantees and deferred revenues | 457.4 | 587.3 |
Other liabilities | 1,487.2 | 1,435.1 |
Total Liabilities | 5,601.1 | 6,013.1 |
Financial Services | ||
ASSETS | ||
Cash and cash equivalents | 134.6 | 167.8 |
Finance and other receivables, net (allowance for losses: 2020 - $127.0, 2019 - $112.4) | 11,820.7 | 12,086 |
Equipment on operating leases, net | 3,162.8 | 3,102.6 |
Other assets | 681.7 | 715 |
Total Assets | 15,799.8 | 16,071.4 |
Liabilities | ||
Accounts payable, accrued expenses and other | 561 | 629 |
Commercial paper and bank loans | 3,344.4 | 4,110.2 |
Term notes | 7,508.9 | 7,112.5 |
Deferred taxes and other liabilities | 854.6 | 790.2 |
Total Liabilities | $ 12,268.9 | 12,641.9 |
STOCKHOLDERS' EQUITY: | ||
Retained earnings | $ 10,398.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable debt securities, allowance | $ 0 | $ 0 |
Preferred stock, no par value | $ 0 | $ 0 |
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 | 346,600,000 | 346,300,000 |
Truck, Parts and Other | ||
Allowance for losses | $ 600,000 | $ 600,000 |
Marketable debt securities, amortized cost | 1,409,700,000 | 1,154,000,000 |
Marketable debt securities, allowance | 0 | 0 |
Financial Services | ||
Allowance for credit losses | $ 127,000,000 | $ 112,400,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES: | |||
Net Income | $ 1,298.4 | $ 2,387.9 | $ 2,195.1 |
Adjustments to reconcile net income to cash provided by operations: | |||
Depreciation and amortization, Property, plant and equipment | 249.6 | 322.2 | 337.6 |
Depreciation and amortization, Equipment on operating leases and other | 799.4 | 755.1 | 716.5 |
Provision for losses on financial services receivables | 28.8 | 15.4 | 16.5 |
Deferred taxes | (0.5) | 70.8 | 17.5 |
Other, net | 20.4 | 26.6 | 35.1 |
Pension contributions | (184.9) | (35.7) | (88.9) |
Decrease (increase) in assets other than cash and cash equivalents: | |||
Trade and other receivables | 121.8 | (72.3) | (299.1) |
Wholesale receivables on new trucks | 871.2 | (520.2) | (512.3) |
Inventories | (48.2) | 24.6 | (332.7) |
Other assets, net | (133.8) | (365.4) | (187) |
(Decrease) increase in liabilities: | |||
Accounts payable and accrued expenses | (53.6) | (27.6) | 528.9 |
Residual value guarantees and deferred revenues | (127.8) | (179.7) | 275 |
Other liabilities, net | 146.4 | 458.6 | 290.1 |
Net Cash Provided by Operating Activities | 2,987.2 | 2,860.3 | 2,992.3 |
INVESTING ACTIVITIES: | |||
Originations of retail loans and finance leases | (3,917.3) | (4,081.8) | (3,858.9) |
Collections on retail loans and finance leases | 3,252 | 3,388.8 | 2,914 |
Net decrease (increase) in wholesale receivables on used equipment | 53.3 | (47.7) | (0.9) |
Purchases of marketable debt securities | (842.4) | (850.6) | (615.9) |
Proceeds from sales and maturities of marketable debt securities | 597.8 | 715.5 | 931.5 |
Payments for property, plant and equipment | (550.4) | (574) | (457.6) |
Acquisitions of equipment for operating leases | (1,088) | (1,396.8) | (1,494.7) |
Proceeds from asset disposals | 601.9 | 638.1 | 653.7 |
Other, net | 17.3 | 1.1 | (1.9) |
Net Cash Used in Investing Activities | (1,875.8) | (2,207.4) | (1,930.7) |
FINANCING ACTIVITIES: | |||
Payments of cash dividends | (1,239.8) | (1,138.6) | (804.3) |
Purchases of treasury stock | (42.1) | (110.2) | (354.4) |
Proceeds from stock compensation transactions | 53.7 | 60.8 | 19.3 |
Net (decrease) increase in commercial paper, short-term bank loans and other | (831.9) | 557.1 | 625.9 |
Proceeds from term debt | 2,150.1 | 2,504.3 | 2,339.9 |
Payments on term debt | (1,898.5) | (1,790) | (1,755.3) |
Net Cash (Used in) Provided by Financing Activities | (1,808.5) | 83.4 | 71.1 |
Effect of exchange rate changes on cash | 61.6 | 2.9 | (61.5) |
Net (Decrease) Increase in Cash and Cash Equivalents | (635.5) | 739.2 | 1,071.2 |
Cash and cash equivalents at beginning of year | 4,175.1 | 3,435.9 | 2,364.7 |
Cash and cash equivalents at end of year | $ 3,539.6 | $ 4,175.1 | $ 3,435.9 |
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: | RETAINED EARNINGS:Cumulative Effect, Period of Adoption, Adjustment | ACCUMULATED OTHER COMPREHENSIVE LOSS: |
Beginning balance at Dec. 31, 2017 | $ 351.8 | $ 123.2 | $ 8,369.1 | $ (793.6) | |||
Net income | $ 2,195.1 | 2,195.1 | |||||
Purchases, shares: 2020 - .71; 2019 - 1.68; 2018 - 5.85 | $ (354.4) | ||||||
Cash dividends declared on common stock,per share: 2020 - $1.98; 2019 - $3.58; 2018 - $3.09 | (1,078.8) | ||||||
Treasury stock retirement | (5.8) | (88.3) | 354.4 | (260.3) | |||
Stock compensation | 0.6 | ||||||
Stock compensation and tax benefit | 34.5 | ||||||
Other comprehensive income (loss) | (271.7) | (271.7) | |||||
Reclassifications to retained earnings in accordance with ASU 2018-02 | (33.2) | ||||||
Ending balance at Dec. 31, 2018 | 8,592.9 | 346.6 | 69.4 | 9,275.4 | $ 50.3 | (1,098.5) | |
Net income | 2,387.9 | 2,387.9 | |||||
Purchases, shares: 2020 - .71; 2019 - 1.68; 2018 - 5.85 | (110.2) | ||||||
Cash dividends declared on common stock,per share: 2020 - $1.98; 2019 - $3.58; 2018 - $3.09 | (1,242) | ||||||
Treasury stock retirement | (1.7) | (85.7) | 110.2 | (22.8) | |||
Stock compensation | 1.4 | ||||||
Stock compensation and tax benefit | 77.7 | ||||||
Other comprehensive income (loss) | (1.6) | (1.6) | |||||
Ending balance at Dec. 31, 2019 | 9,706.1 | 346.3 | 61.4 | 10,398.5 | (1,100.1) | ||
Net income | 1,298.4 | 1,298.4 | |||||
Purchases, shares: 2020 - .71; 2019 - 1.68; 2018 - 5.85 | (42.1) | ||||||
Cash dividends declared on common stock,per share: 2020 - $1.98; 2019 - $3.58; 2018 - $3.09 | (687.1) | ||||||
Treasury stock retirement | (0.7) | (41.4) | $ 42.1 | ||||
Stock compensation | 1 | ||||||
Stock compensation and tax benefit | 68.5 | ||||||
Other comprehensive income (loss) | 49.8 | 49.8 | |||||
Ending balance at Dec. 31, 2020 | $ 10,390 | $ 346.6 | $ 88.5 | $ 11,005.2 | $ (4.6) | $ (1,050.3) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
TREASURY STOCK, AT COST: | |||
Purchases, shares | 710,000 | 1,680,000 | 5,850,000 |
RETAINED EARNINGS: | |||
Cash dividends declared on common stock, per share | $ 1.98 | $ 3.58 | $ 3.09 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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, the 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: The Company enters into sales contracts with customers associated with purchases of the Company’s products and services including trucks, parts, product support, and other related services. Generally, the Company recognizes revenue for the amount of consideration it will receive for delivering a product or service to a customer. Revenue is recognized when the customer obtains control of the product or receives benefits of the service. The Company excludes sales taxes, value added taxes and other related taxes assessed by government agencies from revenue. There are no significant financing components included in product or services revenue since generally customers pay shortly after the products or services are transferred. In the Truck and Parts segment, when the Company grants extended payment terms on selected receivables and charges interest, interest income is recognized when earned. The Company recognizes truck and parts sales as revenue when control of the products is transferred to customers which generally occurs upon shipment, except for certain truck sales which are subject to a residual value guarantee (RVG) by the Company. The standard payment term for trucks and aftermarket parts is typically within 30 days, but the Company may grant extended payment terms on selected receivables. The Company recognizes revenue for the invoice amount adjusted for estimated sales incentives and returns. Sales incentives and returns are estimated based on historical experience and are adjusted to current period revenue when the most likely amount of consideration the Company expects to receive changes or becomes fixed. Truck and part sales include a standard product warranty which is included in cost of sales. The Company has elected to treat delivery services as a fulfillment activity with revenues recognized when the customer obtains control of the product. Delivery revenue is included in revenues and the related costs are included in cost of sales. As a practical expedient, the Company is not disclosing truck order backlog, as a significant majority of the backlog has a duration of less than one year. Truck sales with RVGs that allow customers the option to return their truck are accounted for as a sale when the customer does not have an economic incentive to return the truck to the Company, or as an operating lease when the customer does have an economic incentive to return the truck. The estimate of customers’ economic incentive to return the trucks is based on an analysis of historical guaranteed buyback value and estimated market value. When truck sales with RVGs are accounted for as a sale, revenue is recognized when the truck is transferred to the customer less an amount for expected returns. Expected return rates are estimated by using a historical weighted average return rate over a seven-year Revenues from extended warranties, operating leases and other include optional extended warranty and repair and maintenance (R&M) service contracts which can be purchased for periods generally ranging up to five years. The Company defers revenue based on stand-alone observable selling prices when it receives payments in advance and generally recognizes the revenue on a straight-line basis over the warranty or R&M contract periods. See Note I, Product Support Liabilities, in the Notes to the Consolidated Financial Statements for further information. Also included are truck sales with an RVG accounted for as an operating lease. A liability is created for the residual value obligation with the remainder of the proceeds recorded as deferred revenue. The deferred revenue is recognized on a straight-line basis over the guarantee period, which typically ranges from three to five years. Total operating lease income from truck sales with RVGs for the years ended December 31, 2020, 2019 and 2018 was $104.2, $159.7 and $152.6, respectively. Aftermarket parts sales allow for returns which are estimated at the time of sale based on historical data. At December 31, 2020, the estimated value of the returned goods asset and the related return liability were $62.2 and $142.0, respectively, compared to $56.3 and $126.3 at December 31, 2019, respectively. Parts dealer services and other revenues are recognized as services are performed. Revenue from winch sales and other is primarily derived from the industrial winch business. Winch sales are recognized when the product is transferred to a customer, which generally occurs upon shipment. Also within this category are other revenues not attributable to a reportable segment. Financial Services: The Company’s Financial Services segment products include loans to customers collateralized by the vehicles being financed, finance leases to lease equipment to retail customers and dealers, dealer wholesale financing which includes floating-rate wholesale loans to PACCAR dealers for new and used trucks, and operating leases which include rentals on Company owned equipment. 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 using the straight-line method which approximates the interest method. Operating lease rental revenue is recognized on a straight-line basis over the term of the lease. Customer contracts may include additional services such as excess mileage, repair and maintenance and other services on which revenue is recognized when earned. The Company’s full-service lease arrangements bundle these additional services. Rents for full-service lease contracts are allocated between lease and non-lease components based on the relative stand-alone price of each component. Taxes, such as sales and use and value added, which are collected by the Company from a customer, are excluded from the measurement of lease income and expenses. Rental revenues for the years ended December 31, 2020, 2019 and 2018 were $802.3, $798.2 and $797.1, respectively. Depreciation and related leased unit operating expenses were $776.5, $721.6 and $686.9 for the years ended December 31, 2020, 2019 and 2018, 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, 2020 or December 31, 2019. 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. Finance leases are secured by the trucks and related equipment being leased and the lease terms generally range from three to five years depending on the type and use of the equipment. The lessee is required to either purchase the equipment or guarantee to the Company a stated residual value upon the disposition of the equipment at the end of the finance lease term. Operating lease terms generally range from three to five years. At the end of the operating lease term, the lessee has the option to return the equipment to the Company or purchase the equipment at its fair market value. The Company determines its estimate of the residual value of leased vehicles by considering the length of the lease term, the truck model, the expected usage of the truck and anticipated market demand. If the sales price of the truck at the end of the agreement differs from the Company’s estimated residual value, a gain or loss will result. Future market conditions, changes in government regulations and other factors outside the Company’s control could impact the ultimate sales price of trucks returned under these contracts. Residual values are reviewed regularly and adjusted if market conditions warrant. 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 and may include an allowance for credit losses. Changes in the allowance for credit losses are recognized in the current period earnings and any unrealized gains or losses, net of tax, are 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 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 the result of credit losses or unrealized losses. In assessing credit losses, 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. The Company considers its intent for selling the security and whether it is more likely than not the Company will be able to hold the security until the recovery of any credit losses and unrealized losses. Charges against the allowance for credit losses occur when a security with credit losses is sold or the Company no longer intends to hold that security. Receivables: Trade and Other Receivables: The Company’s trade and other receivables are recorded at cost, net of allowances. At December 31, 2020 and 2019, respectively, trade and other receivables included trade receivables from dealers and customers of $942.7 and $1,055.0 and other receivables of $254.8 and $251.1 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 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. 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 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 a loan or finance lease for credit reasons and grants a concession, the modification is classified as a troubled debt restructuring (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. In accordance with FASB statement, Prudential Regulator Guidance Concerning Troubled Debt Restructurings , issued on March 22, 2020, short-term modifications granted to customers were not considered TDRs if they were not past due and were seeking to manage their liquidity needs because of the effects of the COVID-19 pandemic. On average, modifications extended contractual terms by approximately three months in 2020 and five months in 2019 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at December 31, 2020 and 2019. 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 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 amortized cost basis, 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 and share similar risk characteristics 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, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss data provides relevant information of expected credit losses. The historical information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and 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 based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and markets in which the Company conducts business. The Company utilizes economic forecasts from third party sources and determines expected losses based on historical experience under similar market conditions. 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 expected 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 amortized cost basis. 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 an RVG by the Company may be accounted for as an operating lease. Equipment is recorded at cost and is depreciated on the straight-line basis to the lower of the estimated residual value or guarantee value. Lease and guarantee periods generally range from three to five years. Estimated useful lives of the equipment range from three to ten 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 by the straight-line method based on the estimated useful lives of various classes of assets. Certain production tooling and equipment are 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, 2020. Goodwill was $118.8 and $109.1 at December 31, 2020 and 2019, respectively. The increase in value was 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 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 and current data and reasonable expectations for the future regarding the frequency and cost of warranty 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 rate and foreign currency risk. Certain derivative instruments designated as fair value hedges, cash flow hedges or net investment hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedged instruments. 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 derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $20.5 at December 31, 2020 The Company uses regression analysis to assess effectiveness of interest-rate contracts and net investment hedges at inception and uses quantitative analysis to assess subsequent effectiveness 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. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in operating activities in the Consolidated Statements of Cash Flows. 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 New Credit Loss Standard In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet on January 1, 2020 for the adoption of ASU 2016-13 was as follows: BALANCE AT DECEMBER 31, 2019 CHANGE DUE TO NEW STANDARD BALANCE AT JANUARY 1, 2020 Consolidated Balance Sheets FINANCIAL SERVICES: ASSETS Finance and other receivables, net $ 12,086.0 $ (6.2 ) $ 12,079.8 Other assets 715.0 .1 715.1 LIABILITIES Deferred taxes and other liabilities 790.2 (1.5 ) 788.7 STOCKHOLDERS' EQUITY Retained earnings 10,398.5 (4.6 ) 10,393.9 Other New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period and will be in effect for a limited time through December 31, 2022. The Company adopted this ASU as of October 1, 2020. The Company will apply the accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. The Company does not expect the standard to have a material impact on its consolidated financial statements. In addition to adopting the ASUs disclosed above, the Company adopted the following standards on January 1, 2020, which had no material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. 2018-15 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The FASB also issued the following standard, which is not expected to have a material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION EFFECTIVE DATE 2018-14 * Compensation – Retirement Benefits – Defined Benefit Plans – General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. January 1, 2021 * The Company will adopt on the effective date. |
Sales and Revenues
Sales and Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Sales And Revenues [Abstract] | |
Sales and Revenues | B. SALES AND REVENUES The following table disaggregates Truck, Parts and Other revenues by major sources: Year Ended December 31, 2020 2019 Truck Truck sales $ 12,466.9 $ 19,225.2 Revenues from extended warranties, operating leases and other 697.9 764.3 13,164.8 19,989.5 Parts Parts sales 3,803.3 3,912.1 Revenues from dealer services and other 109.6 112.8 3,912.9 4,024.9 Winch sales and other 76.6 105.3 Truck, Parts and Other sales and revenues $ 17,154.3 $ 24,119.7 The following table summarizes Financial Services lease revenues by lease type: Year Ended December 31, 2020 2019 Finance lease revenues $ 189.2 $ 199.7 Operating lease revenues 802.3 798.2 Total lease revenues $ 991.5 $ 997.9 |
Investments in Marketable Debt
Investments in Marketable Debt Securities | 12 Months Ended |
Dec. 31, 2020 | |
Available For Sale Securities [Abstract] | |
Investments in Marketable Debt Securities | C. INVESTMENTS IN MARKETABLE DEBT SECURITIES Marketable debt securities consisted of the following at December 31: AMORTIZED UNREALIZED UNREALIZED FAIR 2020 COST GAINS LOSSES VALUE U.S. tax-exempt securities $ 388.1 $ 4.4 $ .1 $ 392.4 U.S. corporate securities 229.6 3.3 232.9 U.S. government and agency securities 92.1 2.3 94.4 Non-U.S. corporate securities 406.0 5.5 411.5 Non-U.S. government securities 77.0 .5 77.5 Other debt securities 216.9 3.4 220.3 $ 1,409.7 $ 19.4 $ .1 $ 1,429.0 AMORTIZED UNREALIZED UNREALIZED FAIR 2019 COST GAINS LOSSES VALUE U.S. tax-exempt securities $ 318.1 $ 2.2 $ .1 $ 320.2 U.S. corporate securities 163.8 1.9 165.7 U.S. government and agency securities 128.4 .9 129.3 Non-U.S. corporate securities 347.7 2.3 .2 349.8 Non-U.S. government securities 72.3 .2 .1 72.4 Other debt securities 123.7 1.1 .1 124.7 $ 1,154.0 $ 8.6 $ .5 $ 1,162.1 The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest and dividend income and realized gains and losses are included in investment income. The cost of securities sold is based on the specific identification method. Gross realized gains were $2.7, $1.3 and $1.1, and gross realized losses were $.3, $.4 and $.8 for the years ended December 31, 2020, 2019 and 2018, respectively. Marketable debt securities with continuous unrealized losses and their related fair values were as follows: At December 31, 2020 2019 LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER Fair value $ 81.1 $ 1.3 $ 177.0 $ 31.4 Unrealized losses .1 .4 .1 The unrealized losses on the investments above were due to higher yields on certain securities. The Company did not identify any indicators of a credit loss in its assessments. Accordingly, no allowance for credit losses was recorded at December 31, 2020 and December 31, 2019. The Company does not currently intend, and it is more likely than not, that it will not be required to sell the investment securities before recovery of the unrealized losses. The Company expects that the contractual principal and interest will be received on the investment securities. Contractual maturities on marketable debt securities at December 31, 2020 AMORTIZED FAIR Maturities: COST VALUE Within one year $ 313.9 $ 315.7 One to five years 1,088.6 1,106.1 Six to ten years 5.2 5.2 More than ten years 2.0 2.0 $ 1,409.7 $ 1,429.0 Marketable debt securities included nil and $49.7 of variable rate demand obligations (VRDOs) at December 31, 2020 and 2019, respectively. VRDOs are debt instruments with long-term scheduled maturities which have interest rates that reset periodically. Actual maturities of VRDOs may differ from contractual maturities because these securities may be sold when interest rates are reset. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | D. INVENTORIES Inventories include the following: At December 31, 2020 2019 Finished products $ 610.0 $ 584.6 Work in process and raw materials 801.9 754.9 1,411.9 1,339.5 Less LIFO reserve (190.0 ) (186.3 ) $ 1,221.9 $ 1,153.2 Inventories valued using the LIFO method comprised 42% and 46% of consolidated inventories before deducting the LIFO reserve at December 31, 2020 and 2019, respectively. |
Finance and Other Receivables
Finance and Other Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Finance and Other Receivables | E. FINANCE AND OTHER RECEIVABLES Finance and other receivables include the following: At December 31, 2020 2019 Loans $ 5,839.1 $ 5,241.7 Finance leases 3,944.7 3,906.7 Dealer wholesale financing 2,012.4 2,907.4 Operating lease receivables and other 151.5 142.6 $ 11,947.7 $ 12,198.4 Less allowance for losses: Loans and leases (120.4 ) (104.4 ) Dealer wholesale financing (3.4 ) (4.3 ) Operating lease receivables and other (3.2 ) (3.7 ) $ 11,820.7 $ 12,086.0 Included in Finance and other receivables, net on the Consolidated Balance Sheets is accrued interest receivable (net of allowance for credit losses) of $35.6 and $29.5 as of December 31, 2020 and December 31, 2019, respectively. The net activity of 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 loans are as follows: Beginning January 1, LOANS 2021 $ 1,758.4 2022 1,480.1 2023 1,223.6 2024 881.8 2025 380.0 Thereafter 115.2 $ 5,839.1 Annual minimum payments due on finance lease r eceivables and a reconciliation of the undiscounted cash flows to the net investment in finance leases are as follows: FINANCE Beginning January 1, LEASES 2021 $ 1,310.4 2022 1,030.5 2023 775.0 2024 458.8 2025 223.4 Thereafter 82.5 3,880.6 Unguaranteed residual values 458.8 Unearned interest on finance leases (394.7 ) Net investment in finance leases $ 3,944.7 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: 2020 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL** Balance at January 1 $ 4.3 $ 9.2 $ 101.4 $ 3.7 $ 118.6 Provision for losses (1.0 ) (.8 ) 30.1 .5 28.8 Charge-offs (26.6 ) (1.4 ) (28.0 ) Recoveries 5.3 .4 5.7 Currency translation and other .1 1.8 1.9 Balance at December 31 $ 3.4 8.4 $ 112.0 $ 3.2 $ 127.0 2019 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 6.8 $ 10.0 $ 93.8 $ 3.2 $ 113.8 Provision for losses (1.6 ) (1.0 ) 14.2 3.8 15.4 Charge-offs (.6 ) (24.2 ) (3.6 ) (28.4 ) Recoveries 10.7 .3 11.0 Currency translation and other (.3 ) .2 .7 .6 Balance at December 31 $ 4.3 $ 9.2 $ 95.2 $ 3.7 $ 112.4 * Operating lease and other trade receivables. ** The beginning balance has been adjusted for the adoption of ASU 2016-13. 2018 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 6.0 $ 9.4 $ 92.5 $ 9.3 $ 117.2 Provision for losses 1.0 .7 13.6 1.2 16.5 Charge-offs (20.0 ) (7.5 ) (27.5 ) Recoveries 9.9 .4 10.3 Currency translation and other (.2 ) (.1 ) (2.2 ) (.2 ) (2.7 ) Balance at December 31 $ 6.8 $ 10.0 $ 93.8 $ 3.2 $ 113.8 * Operating lease and other trade receivables. Information regarding finance receivables evaluated and determined individually and collectively is as follows: DEALER CUSTOMER At December 31, 2020 WHOLESALE RETAIL RETAIL TOTAL Amortized cost basis for impaired finance receivables evaluated individually $ 1.2 $ 86.7 $ 87.9 Allowance for impaired finance receivables determined individually 5.6 5.6 Amortized cost basis for finance receivables evaluated collectively $ 2,012.4 1,701.9 7,994.0 11,708.3 Allowance for finance receivables determined collectively 3.4 8.4 106.4 118.2 DEALER CUSTOMER At December 31, 2019 WHOLESALE RETAIL RETAIL TOTAL Amortized cost basis for impaired finance receivables evaluated individually $ 2.3 $ 47.6 $ 49.9 Allowance for impaired finance receivables determined individually 6.5 6.5 Amortized cost basis for finance receivables evaluated collectively $ 2,907.4 1,643.3 7,455.2 12,005.9 Allowance for finance receivables determined collectively 4.3 9.2 88.7 102.2 The amortized cost basis for finance receivables that are on non-accrual status is as follows: At December 31, 2020 2019 Dealer: Retail $ 1.2 $ 2.3 Customer retail: Fleet 78.6 40.2 Owner/operator 8.1 7.2 $ 87.9 $ 49.7 Impaired Loans: Impaired loans are summarized below. The impaired loans with specific reserve represent the unpaid principal balance. The amortized cost basis of impaired loans as of December 31, 2020 and 2019 was not significantly different than the unpaid principal balance. DEALER CUSTOMER RETAIL At December 31, 2020 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Impaired loans with a specific reserve $ 22.6 $ 2.1 $ 24.7 Associated allowance (1.6 ) (.3 ) (1.9 ) 21.0 1.8 22.8 Impaired loans with no specific reserve $ 1.2 1.2 Net carrying amount of impaired loans $ 1.2 $ 21.0 $ 1.8 $ 24.0 Average amortized cost basis $ 1.6 $ 26.5 $ 2.8 $ 30.9 DEALER CUSTOMER RETAIL At December 31, 2019 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Impaired loans with a specific reserve $ 10.9 $ 3.1 $ 14.0 Associated allowance (2.1 ) (.6 ) (2.7 ) 8.8 2.5 11.3 Impaired loans with no specific reserve $ 2.3 6.7 .4 9.4 Net carrying amount of impaired loans $ 2.3 $ 15.5 $ 2.9 $ 20.7 Average amortized cost basis $ 4.9 $ 2.4 $ 16.6 $ 3.4 $ 27.3 During the period the loans above were considered impaired, interest income recognized on a cash basis was as follows: Year Ended December 31, 2020 2019 2018 Dealer: Retail $ .2 $ .2 Customer retail: Fleet 1.5 1.3 $ 2.0 Owner/operator .2 .2 .2 $ 1.9 $ 1.7 $ 2.2 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 table below summarizes the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class. Revolving At December 31, 2020 Loans 2020 2019 2018 2017 2016 Prior Total Dealer: Wholesale: Performing $ 2,004.5 $ 2,004.5 Watch 7.9 7.9 $ 2,012.4 $ 2,012.4 Retail: Performing $ 20.7 $ 504.2 $ 474.9 $ 268.0 $ 180.1 $ 100.4 $ 132.0 $ 1,680.3 Watch 5.2 10.5 4.5 1.4 21.6 At-risk 1.2 1.2 $ 20.7 $ 509.4 $ 485.4 $ 272.5 $ 181.5 $ 101.6 $ 132.0 $ 1,703.1 Total Dealer $ 2,033.1 $ 509.4 $ 485.4 $ 272.5 $ 181.5 $ 101.6 $ 132.0 $ 3,715.5 Customer Retail: Fleet: Performing $ 2,664.9 $ 1,921.6 $ 1,203.7 $ 533.7 $ 234.2 $ 65.2 $ 6,623.3 Watch 13.5 17.8 11.8 5.9 1.5 1.2 51.7 At-risk 8.0 37.0 18.2 12.2 2.4 .8 78.6 $ 2,686.4 $ 1,976.4 $ 1,233.7 $ 551.8 $ 238.1 $ 67.2 $ 6,753.6 Owner/Operator: Performing $ 554.6 $ 376.4 $ 225.1 $ 105.2 $ 41.2 $ 9.1 $ 1,311.6 Watch 1.6 2.7 2.0 .7 .2 .2 7.4 At-risk .9 2.1 3.2 1.2 .4 .3 8.1 $ 557.1 $ 381.2 $ 230.3 $ 107.1 $ 41.8 $ 9.6 $ 1,327.1 Total Customer Retail $ 3,243.5 $ 2,357.6 $ 1,464.0 $ 658.9 $ 279.9 $ 76.8 $ 8,080.7 Total $ 2,033.1 $ 3,752.9 $ 2,843.0 $ 1,736.5 $ 840.4 $ 381.5 $ 208.8 $ 11,796.2 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, 2020 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Current and up to 30 days past due $ 2,012.4 $ 1,703.1 $ 6,718.3 $ 1,314.7 $ 11,748.5 31 – 60 days past due 12.3 6.5 18.8 Greater than 60 days past due 23.0 5.9 28.9 $ 2,012.4 $ 1,703.1 $ 6,753.6 $ 1,327.1 $ 11,796.2 DEALER CUSTOMER RETAIL At December 31, 2019 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Current and up to 30 days past due $ 2,907.4 $ 1,645.6 $ 6,297.1 $ 1,140.7 $ 11,990.8 31 – 60 days past due 23.0 8.7 31.7 Greater than 60 days past due 27.6 5.7 33.3 $ 2,907.4 $ 1,645.6 $ 6,347.7 $ 1,155.1 $ 12,055.8 Troubled Debt Restructurings: The balance of TDRs was $63.1 and $14.1 at December 31, 2020 and 2019, respectively. At modification date, the pre-modification and post-modification amortized cost basis balances for finance receivables modified during the period by portfolio class were as follows: 2020 2019 AMORTIZED COST BASIS AMORTIZED COST BASIS PRE-MODIFICATION POST-MODIFICATION PRE-MODIFICATION POST-MODIFICATION Fleet $ 72.5 $ 72.5 $ 2.2 $ 2.2 Owner/operator 2.2 2.2 .3 .3 $ 74.7 $ 74.7 $ 2.5 $ 2.5 The effect on the allowance for credit losses from such modifications was not significant at December 31, 2020 and 2019. TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past due) in the years ended December 31, 2020 and 2019 were $4.1 and nil There were $2.0 and nil 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, 2020 and 2019 was $19.3 and $25.6, respectively. Proceeds from the sales of repossessed assets were $85.6, $62.4 and $75.8 for the years ended December 31, 2020, 2019 and 2018, 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, 2020 | |
Lessor Disclosure [Abstract] | |
Equipment On Operating Leases | F. EQUIPMENT ON OPERATING LEASES A summary of equipment on operating leases for Truck, Parts and Other and for the Financial Services segment is presented below. TRUCK, PARTS AND OTHER FINANCIAL SERVICES At December 31, 2020 2019 2020 2019 Equipment on operating leases $ 576.8 $ 706.3 $ 4,493.9 $ 4,350.0 Less allowance for depreciation (154.9 ) (160.8 ) (1,331.1 ) (1,247.4 ) $ 421.9 $ 545.5 $ 3,162.8 $ 3,102.6 Annual minimum lease payments due on Financial Services operating leases beginning January 1, 2021 are $668.2, $451.8, $252.8, $104.3, $35.0 and $5.1 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, 2020 2019 Residual value guarantees $ 358.4 $ 439.6 Deferred lease revenues 99.0 147.7 $ 457.4 $ 587.3 The deferred lease revenue is amortized on a straight-line basis over the RVG contract period. At December 31, 2020, the annual amortization of deferred revenues beginning January 1, 2021 is $53.6, $24.6, $12.1, $8.5, $.2 and nil thereafter. Annual maturities of the RVGs beginning January 1, 2021 are $179.8, $82.4, $54.2, $15.9, $15.2 and $10.9 thereafter. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant And Equipment | G. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment include the following: At December 31, USEFUL LIVES 2020 2019 Land $ 286.4 $ 271.8 Buildings and improvements 10 - 40 years 1,474.7 1,382.2 Machinery, equipment and production tooling 3 - 12 years 4,234.4 3,998.2 Construction in progress 1,081.8 741.7 7,077.3 6,393.9 Less allowance for depreciation (3,806.9 ) (3,510.1 ) $ 3,270.4 $ 2,883.8 |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other | H. ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER Accounts payable, accrued expenses and other include the following: At December 31, 2020 2019 Truck, Parts and Other: Accounts payable $ 1,176.2 $ 1,115.7 Product support liabilities 514.6 508.1 Accrued expenses 446.5 467.4 Right-of-return liabilities 337.3 226.0 Accrued capital expenditures 288.8 270.3 Salaries and wages 260.8 271.8 Other 389.7 334.9 $ 3,413.9 $ 3,194.2 |
Product Support Liabilities
Product Support Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Product Support Liabilities | I. PRODUCT SUPPORT LIABILITIES Changes in product support liabilities are summarized as follows: WARRANTY RESERVES 2020 2019 2018 Balance at January 1 $ 440.0 $ 380.2 $ 298.8 Cost accruals 295.0 386.3 331.9 Payments (437.2 ) (343.7 ) (271.8 ) Change in estimates for pre-existing warranties 84.1 19.8 25.6 Currency translation and other 7.8 (2.6 ) (4.3 ) Balance at December 31 $ 389.7 $ 440.0 $ 380.2 DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS 2020 2019 2018 Balance at January 1 $ 801.4 $ 699.9 $ 653.9 Deferred revenues 409.9 499.1 448.2 Revenues recognized (438.9 ) (396.4 ) (385.0 ) Currency translation 23.4 (1.2 ) (17.2 ) Balance at December 31 $ 795.8 $ 801.4 $ 699.9 The Company expects to recognize approximately $272.3 of the remaining deferred revenues on extended warranties and R&M contracts in 2021, $251.8 in 2022, $162.3 in 2023, $74.6 in 2024, $25.4 in 2025 and $9.4 thereafter. Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: WARRANTY RESERVES DEFERRED REVENUES At December 31, 2020 2019 2020 2019 Truck, Parts and Other: Accounts payable, accrued expenses and other $ 245.6 $ 270.6 $ 269.0 $ 237.5 Other liabilities 144.1 169.4 513.1 547.6 Financial Services: Accounts payable, accrued expenses and other 5.7 6.8 Deferred taxes and other liabilities 8.0 9.5 $ 389.7 $ 440.0 $ 795.8 $ 801.4 |
Borrowings And Credit Arrangeme
Borrowings And Credit Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings And Credit Arrangements | J. BORROWINGS AND CREDIT ARRANGEMENTS Financial Services borrowings include the following: At December 31, 2020 2019 EFFECTIVE EFFECTIVE RATE BORROWINGS RATE BORROWINGS Commercial paper .4 % $ 3,113.5 1.5 % $ 3,797.2 Bank loans 5.9 % 230.9 7.1 % 313.0 3,344.4 4,110.2 Term notes 1.7 % 7,508.9 1.9 % 7,112.5 1.4 % $ 10,853.3 1.9 % $ 11,222.7 Commercial paper and term notes borrowings were $10,622.4 and $10,909.7 at December 31, 2020 and 2019, respectively. Unamortized debt issuance costs, unamortized discounts and the net effect of fair value hedges were $(12.7) and $(20.5) at December 31, 2020 and 2019, respectively. The effective rate is the weighted average rate as of December 31, 2020 and 2019 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, PAPER LOANS NOTES TOTAL 2021 $ 3,114.2 $ 40.1 $ 2,241.7 $ 5,396.0 2022 121.6 2,231.9 2,353.5 2023 19.0 2,231.9 2,250.9 2024 25.1 415.4 440.5 2025 25.1 400.0 425.1 $ 3,114.2 $ 230.9 $ 7,520.9 $ 10,866.0 Interest paid on borrowings was $164.5, $203.8 and $166.5 in 2020, 2019 and 2018, respectively. 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, PACCAR Financial Mexico and PACCAR Financial Pty. Ltd. (PFPL). In November 2018, 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 , 2020 was $ As of December 31, 2020, the Company’s European finance subsidiary, PACCAR Financial Europe, had €1,600.0 available under a €2,500.0 medium In April 2016, PACCAR Financial Mexico registered a 10,000.0 pesos 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, 2020, 6,842.7 pesos remained In August 2018, the Company’s Australian subsidiary, PACCAR Financial Pty. Ltd. (PFPL), registered a medium-term note program. The program does not limit the principal amount of debt securities that may be issued under the program. The total amount of medium-term notes outstanding for PFPL as of December 31, 2020 was 450.0 Australian dollars. The Company has line of credit arrangements of $3,523.1, of which $3,292.2 were unused at December 31, 2020. Included in these arrangements are $3,000.0 of committed bank facilities, of which $1,000.0 expires in June 2021, $1,000.0 expires in June 2023 and $1,000.0 expires in June 2024. 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 committed bank facilities for the year ended December 31, 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | K. LEASES The Company leases certain facilities and equipment. The Company determines whether an arrangement is or contains a lease at inception. The Company accounts for lease and non-lease components separately. The consideration in the contract is allocated to each separate lease and non-lease component of the contract generally based on the relative stand-alone price of the components. The lease component is accounted for in accordance with the lease standard and the non-lease component is accounted for in accordance with other standards. The Company uses its incremental borrowing rate in determining the present value of lease payments unless the rate implicit in the lease is available. The lease term may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. Leases that have a term of 12 months or less at the commencement date (“short-term leases”) are not included in the right-of-use assets and the lease liabilities. Lease expense for the short-term leases are recognized on a straight-line basis over the lease term. The components of lease expense were as follows: Year Ended December 31, 2020 2019 Finance lease cost Amortization of right-of-use assets $ .9 $ .9 Interest on lease liabilities .1 .1 Operating lease cost 16.6 16.9 Short-term lease cost .8 .7 Variable lease cost 1.7 1.8 Total lease cost $ 20.1 $ 20.4 For the years ended December 31, 2020, 2019 and 2018, total rental expenses for all leases amounted to $20.1, $20.4 and $35.7, respectively. Balance sheet information related to leases was as follows: At December 31, 2020 2019 OPERATING LEASES FINANCE LEASES OPERATING LEASES FINANCE LEASES TRUCK, PARTS AND OTHER: Other noncurrent assets $ 30.9 $ 1.0 $ 31.7 $ 1.1 FINANCIAL SERVICES: Other assets 9.0 5.2 Total right-of-use assets $ 39.9 $ 1.0 $ 36.9 $ 1.1 TRUCK, PARTS AND OTHER: Accounts payable, accrued expenses and other $ 11.4 $ .5 $ 13.0 $ .7 Other liabilities 20.3 .5 19.5 .5 FINANCIAL SERVICES: Accounts payable, accrued expenses and other 2.0 1.5 Deferred taxes and other liabilities 6.6 3.7 Total lease liabilities $ 40.3 $ 1.0 $ 37.7 $ 1.2 The weighted-average remaining lease term and discount rate are as follows at December 31: 2020 2019 OPERATING LEASES FINANCE LEASES OPERATING LEASES FINANCE LEASES Weighted-average remaining lease term 5.7 years 2.3 years 5.1 years 2.2 years Weighted-average discount rate 1.4 % 2.5 % 1.9 % 4.0 % Maturities of lease liabilities are as follows: Beginning January 1, OPERATING LEASES FINANCE LEASES 2021 $ 13.7 $ .6 2022 10.6 .2 2023 5.8 .2 2024 3.2 .1 2025 2.4 Thereafter 6.0 Total lease payments 41.7 1.1 Less: interest (1.4 ) (.1 ) Total lease liabilities $ 40.3 $ 1.0 Cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 17.2 $ 17.0 Operating cash flows from finance leases .1 .2 Financing cash flows from finance leases .9 1.0 Right-of-use assets obtained in exchange for lease liabilities Operating leases 19.9 8.9 Finance leases .5 .7 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | L. COMMITMENTS AND CONTINGENCIES At December 31, 2020, PACCAR had standby letters of credit and surety bonds totaling $45.5, from third-party financial institutions, in the normal course of business, which guarantee various insurance, financing and other activities. At December 31, 2020, PACCAR’s financial services companies, in the normal course of business, had outstanding commitments to fund new loan and lease transactions amounting to $823.4. The commitments generally expire in 90 days. The Company had other commitments, primarily to purchase production inventory, equipment and energy amounting to $127.5, $76.1, $3.4, $.3, $.2 and nil for 2021, 2022, 2023, 2024, 2025 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 accrued 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, 2020, 2019 and 2018 were $1.9, $1.3 and $1.2, 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. On July 19, 2016, the European Commission (EC) concluded its investigation of all major European truck manufacturers and reached a settlement with DAF. Following the settlement, claims and lawsuits have been filed against the Company, DAF and certain DAF subsidiaries and other truck manufacturers in various European jurisdictions. These claims and lawsuits include a number of collective proceedings, including proposed class actions in the United Kingdom, alleging EC-related claims and seeking unspecified damages. 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. The Company cannot reasonably estimate a range of loss, if any, that may result given the early stage of these claims and lawsuits. 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, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | M. EMPLOYEE BENEFITS Severance Costs: The Company incurred severance expense in 2020, 2019 and 2018 of $6.1, $5.8 and $.7, 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 $184.9 to its pension plans in 2020 and $35.7 in 2019. The Company expects to contribute in the range of $100 to $150 to its pension plans in 2021, of which $19.7 is estimated to satisfy minimum funding requirements. Annual benefits expected to be paid beginning January 1, 2021 are $125.7, $109.8, $114.8, $121.2, $127.0 and a total of $726.4 for the five years thereafter. 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 and pooled 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 pooled funds, 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 Q for definitions of fair value levels. FAIR VALUE HIERARCHY At December 31, 2020 TARGET LEVEL 1 LEVEL 2 TOTAL MEASURED AT NAV TOTAL Equities: U.S. equities $ 1,047.0 $ 1,047.0 Global equities 1,140.6 1,140.6 Total equities 50 - 70% 2,187.6 2,187.6 Fixed income: U.S. fixed income $ 83.9 $ 296.0 $ 379.9 $ 719.9 $ 1,099.8 Non-U.S. fixed income 30.4 30.4 372.8 403.2 Total fixed income 30 - 50% 83.9 326.4 410.3 1,092.7 1,503.0 Cash and other 2.6 99.8 102.4 .4 102.8 Total plan assets $ 86.5 $ 426.2 $ 512.7 $ 3,280.7 $ 3,793.4 FAIR VALUE HIERARCHY At December 31, 2019 TARGET LEVEL 1 LEVEL 2 TOTAL MEASURED AT NAV TOTAL Equities: U.S. equities $ 860.1 $ 860.1 Global equities 973.1 973.1 Total equities 50 - 70% 1,833.2 1,833.2 Fixed income: U.S. fixed income $ 90.6 $ 260.3 $ 350.9 $ 611.7 $ 962.6 Non-U.S. fixed income 28.1 28.1 322.0 350.1 Total fixed income 30 - 50% 90.6 288.4 379.0 933.7 1,312.7 Cash and other 10.6 68.2 78.8 1.7 80.5 Total plan assets $ 101.2 $ 356.6 $ 457.8 $ 2,768.6 $ 3,226.4 In 2019, U.S. fixed income Level 1 included $123.4 of investments valued at NAV. The table above reflects these investments as Measured at NAV. The following weighted average assumptions relate to all pension plans of the Company: At December 31, 2020 2019 Discount rate 2.2 % 2.9 % Rate of increase in future compensation levels 3.7 % 3.8 % Assumed long-term rate of return on plan assets 6.2 % 6.3 % The components of the change in projected benefit obligation and change in plan assets are as follows: At December 31, 2020 2019 Change in projected benefit obligation: Benefit obligation at January 1 $ 3,234.4 $ 2,655.4 Service cost 130.4 102.0 Interest cost 83.0 95.6 Benefits paid (120.2 ) (127.0 ) Actuarial loss 379.5 478.0 Currency translation and other 54.4 30.0 Participant contributions .4 .4 Projected benefit obligation at December 31 $ 3,761.9 $ 3,234.4 Change in plan assets: Fair value of plan assets at January 1 $ 3,226.4 $ 2,699.2 Employer contributions 184.9 35.7 Actual return on plan assets 453.4 588.1 Benefits paid (120.2 ) (127.0 ) Currency translation and other 48.5 30.0 Participant contributions .4 .4 Fair value of plan assets at December 31 $ 3,793.4 $ 3,226.4 Funded status at December 31 $ 31.5 $ (8.0 ) At December 31, 2020 2019 Amounts recorded on Balance Sheet: Other noncurrent assets $ 222.1 $ 146.5 Accounts payable, accrued expenses and other 25.5 39.9 Other liabilities 165.1 114.6 Accumulated other comprehensive loss: Actuarial loss 571.7 512.5 Prior service cost 6.3 5.1 Net initial transition amount .1 Of the December 31, 2020 amounts in accumulated other comprehensive loss, $56.7 of unrecognized actuarial loss and $.8 of unrecognized prior service cost are expected to be amortized into net pension expense in 2021. The accumulated benefit obligation for all pension plans of the Company was $3,321.5 and $2,806.3 at December 31, 2020 and 2019, respectively. Information for all plans with an accumulated benefit obligation in excess of plan assets is as follows: At December 31, 2020 2019 Projected benefit obligation $ 167.9 $ 170.6 Accumulated benefit obligation 148.7 150.1 Fair value of plan assets 13.5 23.4 The components of pension expense are as follows: Year Ended December 31, 2020 2019 2018 Service cost $ 130.4 $ 102.0 $ 108.3 Interest on projected benefit obligation 83.0 95.6 85.8 Expected return on assets (190.6 ) (176.6 ) (177.2 ) Amortization of prior service costs 1.5 1.4 1.4 Recognized actuarial loss 44.2 20.5 35.3 Settlement loss 11.6 Net pension expense $ 80.1 $ 42.9 $ 53.6 The components of net pension expense other than service cost are included in Interest and other (income), net on the Consolidated Statements of Income. 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 2020 2019 2018 Metal and Electrical Engineering Industry Pension 135668 $ 33.9 $ 27.8 $ 27.9 Western Metal Industry Pension Plan 91-6033499 001 3.0 3.8 2.7 Other plans .9 1.2 1.2 $ 37.8 $ 32.8 $ 31.8 The Company contributions shown in the table above approximate the multi-employer pension expense for each of the years ended December 31, 2020, 2019 and 2018, 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 expired on November 30, 2020 and is under negotiation. The Company’s contributions were less than 5% of the total contributions to the plan for the last two reporting periods ending December 2020. The plan is required by law (the Netherlands Pension Act) to have a coverage ratio in excess of 104.3%. Because the coverage ratio of the plan was 97.2% at December 31, 2020, a funding improvement plan effective through 2029 is in place. The funding improvement plan includes a possible 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 2, 2025. In accordance with the U.S. Pension Protection Act of 2006, the plan continued to be certified as critical (red) status as of December 31, 2020, and a funding improvement plan has been implemented requiring additional contributions through 2022 as long as the plan remains in critical status. Contributions by the Company were 15% and 20% of the total contributions to the plan for the years ended December 31, 2020 and 2019, respectively. Other plans are principally located in the U.S. and the Company’s contributions to these plans for the years ended December 31, 2020 and 2019 were less than 5% of each plan’s total contributions. As of December 31, 2020, one of the other plans was under a funding improvement plan. 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 2020, 2019 and 2018. Other plans are located in Australia, Brasil, Canada, the Netherlands, Belgium and Germany. Expenses for these plans were $42.5, $48.3 and $45.3 in 2020, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | N. 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, 2020 2019 2018 Domestic $ 1,122.9 $ 2,201.1 $ 1,775.2 Foreign 535.0 898.1 1,035.0 $ 1,657.9 $ 3,099.2 $ 2,810.2 The components of the Company’s provision for income taxes include the following: Year Ended December 31, 2020 2019 2018 Current provision: Federal $ 182.5 $ 352.3 $ 267.1 State 44.9 96.8 67.5 Foreign 132.6 191.4 263.0 360.0 640.5 597.6 Deferred (benefit) provision: Federal (11.2 ) 40.7 22.6 State 1.7 (4.3 ) 1.3 Foreign 9.0 34.4 (6.4 ) (.5 ) 70.8 17.5 $ 359.5 $ 711.3 $ 615.1 Tax benefits recognized for net operating loss carryforwards were $17.8, $12.4 and $5.0 for the years ended 2020, 2019 and 2018, respectively. A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows: 2020 2019 2018 Statutory rate 21.0 % 21.0 % 21.0 % Effect of: Transition tax (.2 ) State 2.3 2.3 2.2 Research and development tax credit (1.4 ) (.9 ) (.8 ) Tax on foreign earnings .8 .9 1.0 Other, net (1.0 ) (.3 ) (1.3 ) 21.7 % 23.0 % 21.9 % Based on the Company’s current operations, the Company does not expect that the repatriation of future foreign earnings will be subject to significant income tax as a result of the U.S. modified territorial system. At December 31, 2020, the Company had net operating loss carryforwards of $492.2, of which $416.2 related to foreign subsidiaries and $76.0 related to states in the U.S. The related deferred tax asset was $129.2, for which a $95.6 valuation allowance has been provided. The carryforward periods range from four 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, 2020 2019 Assets: Accrued expenses $ 205.3 $ 203.5 Net operating loss and tax credit carryforwards 140.1 132.0 Postretirement benefit plans 4.9 Allowance for losses on receivables 36.0 31.4 Goodwill and intangibles 10.0 18.7 Other 122.9 103.3 514.3 493.8 Valuation allowance (102.1 ) (118.5 ) 412.2 375.3 Liabilities: Financial Services leasing depreciation (765.1 ) (777.5 ) Depreciation and amortization (168.0 ) (159.4 ) Postretirement benefit plans (3.0 ) Other (46.1 ) (28.9 ) (982.2 ) (965.8 ) Net deferred tax liability $ (570.0 ) $ (590.5 ) The balance sheet classifications of the Company’s deferred tax assets and liabilities are as follows: At December 31, 2020 2019 Truck, Parts and Other: Other noncurrent assets, net $ 90.4 $ 115.4 Other liabilities (3.5 ) (5.3 ) Financial Services: Other assets 46.8 36.8 Deferred taxes and other liabilities (703.7 ) (737.4 ) Net deferred tax liability $ (570.0 ) $ (590.5 ) Cash paid for income taxes was $374.0, $586.0 and $607.6 in 2020, 2019 and 2018, respectively. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2020 2019 2018 Balance at January 1 $ 30.7 $ 21.2 $ 22.9 Additions for tax positions related to the current year 5.5 6.5 11.2 Additions for tax positions related to prior years .3 3.0 Reductions for tax positions related to prior years (4.2 ) Reductions related to settlements (5.7 ) Lapse of statute of limitations (7.8 ) (7.2 ) Balance at December 31 $ 24.5 $ 30.7 $ 21.2 The Company had $24.5, $30.7 and $21.2 of unrecognized tax benefits, of which $23.2, $28.4 and $18.9 would impact the effective tax rate, if recognized, as of December 31, 2020, 2019 and 2018, respectively. The Company recognized $(.7), $.8 and $(.1) of (income) expense related to interest in 2020, 2019 and 2018, respectively. Accrued interest expense and penalties were $1.2, $1.9 and $1.1 as of December 31, 2020, 2019 and 2018, respectively. Interest and penalties are classified as income taxes in the Consolidated Statements of Income. The Company believes it is reasonably possible that approximately $5.5 of unrecognized tax benefits, resulting primarily from research and development tax credits, will be resolved within the next 12 months . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | O. 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, 2020 $ (15.3 ) $ 6.1 $ (517.7 ) $ (573.2 ) $ (1,100.1 ) Recorded into AOCI (78.4 ) 10.3 (104.0 ) 115.6 (56.5 ) Reclassified out of AOCI 64.5 (1.8 ) 43.6 106.3 Net other comprehensive (loss) income (13.9 ) 8.5 (60.4 ) 115.6 49.8 Balance at December 31, 2020 $ (29.2 ) $ 14.6 $ (578.1 ) $ (457.6 ) $ (1,050.3 ) DERIVATIVE CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION TOTAL Balance at January 1, 2019 $ 2.0 $ (2.3 ) $ (477.8 ) $ (620.4 ) $ (1,098.5 ) Recorded into AOCI (57.0 ) 8.7 (56.8 ) 47.2 (57.9 ) Reclassified out of AOCI 39.7 (.3 ) 16.9 56.3 Net other comprehensive (loss) income (17.3 ) 8.4 (39.9 ) 47.2 (1.6 ) Balance at December 31, 2019 $ (15.3 ) $ 6.1 $ (517.7 ) $ (573.2 ) $ (1,100.1 ) DERIVATIVE CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION TOTAL Balance at January 1, 2018 $ 1.2 $ (1.8 ) $ (375.6 ) $ (417.4 ) $ (793.6 ) Recorded into AOCI 90.9 .1 (86.8 ) (213.3 ) (209.1 ) Reclassified out of AOCI (90.5 ) (.1 ) 28.0 (62.6 ) Net other comprehensive income (loss) .4 (58.8 ) (213.3 ) (271.7 ) Reclassifications to retained earnings in accordance with ASU 2018-02 .4 (.5 ) (43.4 ) 10.3 (33.2 ) Balance at December 31, 2018 $ 2.0 $ (2.3 ) $ (477.8 ) $ (620.4 ) $ (1,098.5 ) Reclassifications out of AOCI during the years ended December 31, 2020, 2019 and 2018 were as follows: AMOUNT AOCI COMPONENTS LINE ITEM IN THE CONSOLIDATED STATEMENTS OF INCOME 2020 2019 2018 Unrealized (gains) and losses on derivative contracts: Truck, Parts and Other Foreign-exchange contracts Net sales and revenues $ (4.0 ) $ 21.2 $ 5.4 Cost of sales and revenues 1.7 (4.1 ) (6.6 ) Interest and other (income), net (4.6 ) 2.1 (1.6 ) Financial Services Interest-rate contracts Interest and other borrowing expenses 94.5 32.5 (118.7 ) Pre-tax expense increase (reduction) 87.6 51.7 (121.5 ) Tax (benefit) expense (23.1 ) (12.0 ) 31.0 After-tax expense increase (reduction) 64.5 39.7 (90.5 ) Unrealized Marketable debt securities Investment income (2.4 ) (.4 ) (.2 ) Tax expense .6 .1 .1 After-tax income increase (1.8 ) (.3 ) (.1 ) Unrealized losses on pension plans: Truck, Parts and Other Actuarial loss Interest and other (income), net 44.2 20.5 35.3 Prior service costs Interest and other (income), net 1.5 1.4 1.4 Settlement loss Interest and other (income), net 11.6 Pre-tax expense increase 57.3 21.9 36.7 Tax benefit (13.7 ) (5.0 ) (8.7 ) After-tax expense increase 43.6 16.9 28.0 Total reclassifications out of AOCI $ 106.3 $ 56.3 $ (62.6 ) Other Capital Stock Changes: The Company purchased and retired treasury shares of .7, 1.7 and 5.8 million in 2020, 2019 and 2018, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | P. 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, 2020, the notional amount of the Company’s interest-rate contracts was $3,280.5. Notional maturities for all interest-rate contracts are $1,241.1 for 2021, $950.0 for 2022, $761.8 for 2023, $169.6 for 2024, $58.9 for 2025 and $99.1 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. The Company enters into foreign-exchange contracts as net investment hedges to reduce the foreign currency exposure from its investments in foreign subsidiaries. At December 31, 2020, the notional amount of the outstanding foreign-exchange contracts was $1,128.8. 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, 2020 2019 ASSETS LIABILITIES ASSETS LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets $ 16.4 $ 45.8 Deferred taxes and other liabilities $ 116.1 $ 31.0 Foreign-exchange contracts: Truck, Parts and Other: Other current assets 2.7 10.1 Accounts payable, accrued expenses and other 35.9 9.2 Financial Services: Deferred taxes and other liabilities 1.2 $ 19.1 $ 153.2 $ 55.9 $ 40.2 Derivatives not designated as hedging instruments: Foreign-exchange contracts: Truck, Parts and Other: Other current assets $ 1.1 $ .4 Accounts payable, accrued expenses and other $ 3.3 $ 1.8 Financial Services: Other assets .3 Deferred taxes and other liabilities 3.4 2.3 $ 1.4 $ 6.7 $ .4 $ 4.1 Gross amounts recognized in Balance Sheet $ 20.5 $ 159.9 $ 56.3 $ 44.3 Less amounts not offset in financial instruments: Truck, Parts and Other: Foreign-exchange contracts (2.1 ) (2.1 ) (.4 ) (.4 ) Financial Services: Interest-rate contracts (12.0 ) (12.0 ) (8.6 ) (8.6 ) Pro forma net amount $ 6.4 $ 145.8 $ 47.3 $ 35.3 The following table presents the amount of (gain) loss from derivative financial instruments reclassified from AOCI into the Consolidated Statements of Income: Year Ended December 31, 2020 2019 2018 Truck, Parts and Other: Cash flow hedges $ (6.9 ) $ 19.2 $ (2.8 ) Net investment hedge (5.6 ) (4.6 ) Total $ (12.5 ) $ 14.6 $ (2.8 ) Financial Services: Fair value hedges 1.1 1.5 1.8 Cash flow hedges 94.5 32.5 (118.7 ) Total $ 95.6 $ 34.0 $ (116.9 ) 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 following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: At December 31, 2020 2019 Financial Services Term notes: Carrying amount of hedged liabilities $ 90.9 $ 90.5 Cumulative basis adjustment included in the carrying amount (.9 ) (.5 ) The above table excludes the cumulative basis adjustments on discontinued hedge relationships of $(.4) and $(1.5) as of December 31, 2020 and 2019, respectively. 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. 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 7.5 years. The following table presents the pre-tax effects of (loss) gain on cash flow hedges recognized in other comprehensive income (loss) (OCI): Year Ended December 31, 2020 2019 2018 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 $ 2.8 $ (31.7 ) $ 4.5 Financial Services $ (107.3 ) (.8 ) $ (44.4 ) $ 117.1 $ (107.3 ) $ 2.0 $ (44.4 ) $ (31.7 ) $ 117.1 $ 4.5 The amount of loss recorded in AOCI at December 31, 2020 that is estimated to be reclassified into earnings in the following 12 months if interest rates and exchange rates remain unchanged is approximately $15.0, net of taxes. The fixed interest earned on finance receivables will offset the amount recognized in interest expense, resulting in a stable interest margin consistent with the Company’s risk management strategy. The amount of gains or losses reclassified out of AOCI into net income based on nil Net Investment Hedges Changes in the fair value of derivatives designated as net investment hedges are recorded in AOCI as an adjustment to the Cumulative Translation Adjustment (CTA). At December 31, 2020, the notional amount of the outstanding net investment hedges was $344.8. For the year ended December 31, 2020, the pre-tax loss recognized in OCI for the net investment hedges was $20.4. Derivatives Not Designated As Hedging Instruments 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 derivatives not designated as hedging instruments are recorded in earnings in the period in which the change occurs. The loss (gain) recognized in earnings related to derivatives not designated as hedging instruments was as follows: Year Ended December 31, 2020 2019 2018 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- RATE EXCHANGE RATE EXCHANGE RATE EXCHANGE CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS Truck, Parts and Other: Cost of sales and revenues $ .7 $ .5 $ (.3 ) Interest and other (income), net 2.3 5.4 6.9 Financial Services: Interest and other borrowing expenses 9.4 (10.1 ) (14.9 ) Selling, general and administrative .8 .1 1.7 $ 13.2 $ (4.1 ) $ (6.6 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Q. 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, 2020. 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, 2020 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 392.4 $ 392.4 U.S. corporate securities 232.9 232.9 U.S. government and agency securities $ 86.5 7.9 94.4 Non-U.S. corporate securities 411.5 411.5 Non-U.S. government securities 77.5 77.5 Other debt securities 220.3 220.3 Total marketable debt securities $ 86.5 $ 1,342.5 $ 1,429.0 Derivatives Cross currency swaps $ 14.8 $ 14.8 Interest-rate swaps 1.6 1.6 Foreign-exchange contracts 4.1 4.1 Total derivative assets $ 20.5 $ 20.5 Liabilities: Derivatives Cross currency swaps $ 77.6 $ 77.6 Interest-rate swaps 38.5 38.5 Foreign-exchange contracts 43.8 43.8 Total derivative liabilities $ 159.9 $ 159.9 At December 31, 2019 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 320.2 $ 320.2 U.S. corporate securities 165.7 165.7 U.S. government and agency securities $ 128.4 .9 129.3 Non-U.S. corporate securities 349.8 349.8 Non-U.S. government securities 72.4 72.4 Other debt securities 124.7 124.7 Total marketable debt securities $ 128.4 $ 1,033.7 $ 1,162.1 Derivatives Cross currency swaps $ 43.8 $ 43.8 Interest-rate swaps 2.0 2.0 Foreign-exchange contracts 10.5 10.5 Total derivative assets $ 56.3 $ 56.3 Liabilities: Derivatives Cross currency swaps $ 13.5 $ 13.5 Interest-rate swaps 17.5 17.5 Foreign-exchange contracts 13.3 13.3 Total derivative liabilities $ 44.3 $ 44.3 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 assumptions regarding the credit and market risks to approximate 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, 2020 2019 CARRYING FAIR CARRYING FAIR AMOUNT VALUE AMOUNT VALUE Assets: Financial Services fixed rate loans $ 5,319.2 $ 5,429.5 $ 4,914.4 $ 4,992.2 Liabilities: Financial Services fixed rate debt 6,482.0 6,648.6 5,925.9 5,990.7 |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation Plans | R. 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, 2020, the maximum number of shares available for future grants was 11.8 million. The assumptions used in determining the fair value of the option awards for each of the grant years are as follows: 2020 2019 2018 Risk-free interest rate 1.54 % 2.55 % 2.64 % Expected volatility 23 % 23 % 23 % Expected dividend yield 4.1 % 4.9 % 3.8 % Expected term 6 years 6 years 6 years Weighted average grant date fair value of options per share $ 10.02 $ 8.26 $ 10.67 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 table above. 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. The fair value of options granted was $6.4, $7.3 and $6.3 for the years ended December 31, 2020, 2019 and 2018, respectively. The fair value of options vested during the years ended December 31, 2020, 2019 and 2018 was $5.0, $5.8 A summary of activity under the Company’s stock plans is presented below: 2020 2019 2018 Intrinsic value of options exercised $ 26.9 $ 31.9 $ 13.4 Cash received from stock option exercises 53.8 60.9 19.7 Tax benefit related to stock award exercises 3.8 3.8 2.4 Stock-based compensation 13.0 15.1 13.2 Tax benefit related to stock-based compensation 1.6 1.9 1.9 The summary of options as of December 31, 2020 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 3,488,300 $ 60.18 Granted 641,700 76.18 Exercised (949,900 ) 56.68 Cancelled (63,600 ) 69.75 Options outstanding at December 31 3,116,500 $ 64.34 6.48 $ 68.4 Vested and expected to vest 3,014,300 $ 64.06 6.40 $ 67.0 Exercisable 1,323,200 $ 56.63 4.15 $ 39.2 * 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, 2020 and changes during the year then ended is presented below: NUMBER GRANT DATE NONVESTED SHARES OF SHARES FAIR VALUE* Nonvested awards outstanding at January 1 150,500 $ 65.92 Granted 94,400 76.78 Vested (96,700 ) 69.46 Forfeited (5,800 ) 71.47 Nonvested awards outstanding at December 31 142,400 $ 70.49 * As of December 31, 2020, there was $5.4 of total unrecognized compensation cost related to nonvested stock options, which is recognized over a remaining weighted average vesting period of 1.46 years. Unrecognized compensation cost related to nonvested restricted stock awards of $2.0 is expected to be recognized over a remaining weighted average vesting period of 1.26 years. The dilutive and antidilutive options are shown separately in the table below: Year Ended December 31, 2020 2019 2018 Additional shares 607,800 621,300 785,100 Antidilutive options 686,100 1,489,400 1,176,600 |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Related Information | S. SEGMENT AND RELATED INFORMATION PACCAR operates in three principal segments: Truck, Parts and Financial Services. The Company evaluates the performance of its Truck and Parts segments based on operating profits, which excludes investment income, other income and expense, and income taxes. The Financial Services segment’s performance is evaluated based on income before income taxes. Geographic revenues from external customers are presented based on the country of the customer. The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A. Truck and Parts: The Truck segment includes the 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. In Europe, the Financial Services and Truck segments centralized the marketing of used trucks, including those units sold by the Truck segment subject to an RVG. Beginning in the fourth quarter of 2019, when a customer returns the truck at the end of the RVG contract, the Company’s Truck segment records a reduction in an RVG liability and the Company’s Financial Services segment records a used truck asset and revenue from the subsequent sale. Certain gains and losses from the sale of these used trucks are shared with the Truck segment. Revenues from the sale of used trucks from the Truck segment in Europe in prior periods are immaterial. Other: Included in Other is the Company’s industrial winch manufacturing business as well as sales, income and expenses not attributable to a reportable segment. Other also includes non-service cost components of pension expense and a portion of corporate expenses. Intercompany interest income (expense) on cash advances to the financial services companies is included in Other and was $ 1.4 , $ .3 and $(.3) for 2020, 2019 and 2018, respectively. Geographic Area Data 2020 2019 2018 Net sales and revenues: United States $ 10,526.6 $ 15,119.3 $ 13,165.7 Europe 4,871.2 6,104.7 6,071.9 Other 3,330.7 4,375.7 4,258.1 $ 18,728.5 $ 25,599.7 $ 23,495.7 Property, plant and equipment, net: United States $ 1,633.0 $ 1,556.4 $ 1,353.8 Belgium 596.2 395.7 237.4 The Netherlands 499.0 399.8 397.8 Other 542.2 531.9 491.9 $ 3,270.4 $ 2,883.8 $ 2,480.9 Equipment on operating leases, net: United States $ 1,219.0 $ 1,390.1 $ 1,405.1 Poland 359.4 343.5 327.8 France 349.7 315.0 246.8 Germany 346.4 358.3 361.0 Spain 310.8 276.1 249.8 Mexico 302.3 320.5 306.4 United Kingdom 125.4 113.6 130.3 Other 571.7 531.0 614.4 $ 3,584.7 $ 3,648.1 $ 3,641.6 Business Segment Data 2020 2019 2018 Net sales and revenues: Truck $ 13,643.0 $ 20,403.5 $ 18,863.1 Less intersegment (478.2 ) (414.0 ) (676.1 ) External customers 13,164.8 19,989.5 18,187.0 Parts 3,962.7 4,073.1 3,896.2 Less intersegment (49.8 ) (48.2 ) (57.3 ) External customers 3,912.9 4,024.9 3,838.9 Other 76.6 105.3 112.7 17,154.3 24,119.7 22,138.6 Financial Services 1,574.2 1,480.0 1,357.1 $ 18,728.5 $ 25,599.7 $ 23,495.7 Income (loss) before income taxes: Truck $ 581.4 $ 1,904.9 $ 1,672.1 Parts 799.3 830.8 768.6 Other 18.2 (17.7 ) 2.7 1,398.9 2,718.0 2,443.4 Financial Services 223.1 298.9 305.9 Investment income 35.9 82.3 60.9 $ 1,657.9 $ 3,099.2 $ 2,810.2 Depreciation and amortization: Truck $ 292.2 $ 381.9 $ 406.2 Parts 10.8 10.2 9.2 Other 20.8 20.3 18.4 323.8 412.4 433.8 Financial Services 725.2 664.9 620.3 $ 1,049.0 $ 1,077.3 $ 1,054.1 Expenditures for long-lived assets: Truck $ 556.0 $ 664.9 $ 778.5 Parts 18.4 46.2 29.4 Other 36.4 51.0 38.8 610.8 762.1 846.7 Financial Services 1,046.7 1,378.6 1,085.1 $ 1,657.5 $ 2,140.7 $ 1,931.8 Segment assets: Truck $ 5,971.9 $ 5,609.0 $ 5,347.3 Parts 1,255.6 1,172.1 1,090.9 Other 398.7 339.2 345.0 Cash and marketable securities 4,834.0 5,169.4 4,299.6 12,460.2 12,289.7 11,082.8 Financial Services 15,799.8 16,071.4 14,399.6 $ 28,260.0 $ 28,361.1 $ 25,482.4 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | quarterly results (unaudited) QUARTER FIRST SECOND THIRD FOURTH (millions, except per share data) 2020 Truck, Parts and Other: Net sales and revenues $ 4,778.0 $ 2,701.9 $ 4,538.4 $ 5,136.0 Cost of sales and revenues 4,189.6 2,441.5 3,958.3 4,487.0 Research and development 71.0 66.5 64.7 71.7 Financial Services: Revenues 383.7 360.3 397.6 432.6 Interest and other borrowing expenses 56.4 46.9 45.2 43.6 Depreciation and other expenses 229.4 224.1 262.5 292.0 Net Income 359.4 147.7 385.5 405.8 Net Income Per Share:* Basic $ 1.04 $ .43 $ 1.11 $ 1.17 Diluted 1.03 .43 1.11 1.17 2019 Truck, Parts and Other: Net sales and revenues $ 6,138.1 $ 6,266.5 $ 6,004.2 $ 5,710.9 Cost of sales and revenues 5,217.1 5,341.7 5,106.8 4,890.0 Research and development 78.3 82.5 82.2 83.6 Financial Services: Revenues 349.5 361.4 362.8 406.3 Interest and other borrowing expenses 53.4 60.0 59.6 57.5 Depreciation and other expenses 177.4 183.6 195.3 241.9 Net Income 629.0 619.7 607.9 531.3 Net Income Per Share: Basic $ 1.81 $ 1.79 $ 1.75 $ 1.53 Diluted 1.81 1.78 1.75 1.53 * 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 Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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, the 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: The Company enters into sales contracts with customers associated with purchases of the Company’s products and services including trucks, parts, product support, and other related services. Generally, the Company recognizes revenue for the amount of consideration it will receive for delivering a product or service to a customer. Revenue is recognized when the customer obtains control of the product or receives benefits of the service. The Company excludes sales taxes, value added taxes and other related taxes assessed by government agencies from revenue. There are no significant financing components included in product or services revenue since generally customers pay shortly after the products or services are transferred. In the Truck and Parts segment, when the Company grants extended payment terms on selected receivables and charges interest, interest income is recognized when earned. The Company recognizes truck and parts sales as revenue when control of the products is transferred to customers which generally occurs upon shipment, except for certain truck sales which are subject to a residual value guarantee (RVG) by the Company. The standard payment term for trucks and aftermarket parts is typically within 30 days, but the Company may grant extended payment terms on selected receivables. The Company recognizes revenue for the invoice amount adjusted for estimated sales incentives and returns. Sales incentives and returns are estimated based on historical experience and are adjusted to current period revenue when the most likely amount of consideration the Company expects to receive changes or becomes fixed. Truck and part sales include a standard product warranty which is included in cost of sales. The Company has elected to treat delivery services as a fulfillment activity with revenues recognized when the customer obtains control of the product. Delivery revenue is included in revenues and the related costs are included in cost of sales. As a practical expedient, the Company is not disclosing truck order backlog, as a significant majority of the backlog has a duration of less than one year. Truck sales with RVGs that allow customers the option to return their truck are accounted for as a sale when the customer does not have an economic incentive to return the truck to the Company, or as an operating lease when the customer does have an economic incentive to return the truck. The estimate of customers’ economic incentive to return the trucks is based on an analysis of historical guaranteed buyback value and estimated market value. When truck sales with RVGs are accounted for as a sale, revenue is recognized when the truck is transferred to the customer less an amount for expected returns. Expected return rates are estimated by using a historical weighted average return rate over a seven-year Revenues from extended warranties, operating leases and other include optional extended warranty and repair and maintenance (R&M) service contracts which can be purchased for periods generally ranging up to five years. The Company defers revenue based on stand-alone observable selling prices when it receives payments in advance and generally recognizes the revenue on a straight-line basis over the warranty or R&M contract periods. See Note I, Product Support Liabilities, in the Notes to the Consolidated Financial Statements for further information. Also included are truck sales with an RVG accounted for as an operating lease. A liability is created for the residual value obligation with the remainder of the proceeds recorded as deferred revenue. The deferred revenue is recognized on a straight-line basis over the guarantee period, which typically ranges from three to five years. Total operating lease income from truck sales with RVGs for the years ended December 31, 2020, 2019 and 2018 was $104.2, $159.7 and $152.6, respectively. Aftermarket parts sales allow for returns which are estimated at the time of sale based on historical data. At December 31, 2020, the estimated value of the returned goods asset and the related return liability were $62.2 and $142.0, respectively, compared to $56.3 and $126.3 at December 31, 2019, respectively. Parts dealer services and other revenues are recognized as services are performed. Revenue from winch sales and other is primarily derived from the industrial winch business. Winch sales are recognized when the product is transferred to a customer, which generally occurs upon shipment. Also within this category are other revenues not attributable to a reportable segment. Financial Services: The Company’s Financial Services segment products include loans to customers collateralized by the vehicles being financed, finance leases to lease equipment to retail customers and dealers, dealer wholesale financing which includes floating-rate wholesale loans to PACCAR dealers for new and used trucks, and operating leases which include rentals on Company owned equipment. 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 using the straight-line method which approximates the interest method. Operating lease rental revenue is recognized on a straight-line basis over the term of the lease. Customer contracts may include additional services such as excess mileage, repair and maintenance and other services on which revenue is recognized when earned. The Company’s full-service lease arrangements bundle these additional services. Rents for full-service lease contracts are allocated between lease and non-lease components based on the relative stand-alone price of each component. Taxes, such as sales and use and value added, which are collected by the Company from a customer, are excluded from the measurement of lease income and expenses. Rental revenues for the years ended December 31, 2020, 2019 and 2018 were $802.3, $798.2 and $797.1, respectively. Depreciation and related leased unit operating expenses were $776.5, $721.6 and $686.9 for the years ended December 31, 2020, 2019 and 2018, 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, 2020 or December 31, 2019. 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. Finance leases are secured by the trucks and related equipment being leased and the lease terms generally range from three to five years depending on the type and use of the equipment. The lessee is required to either purchase the equipment or guarantee to the Company a stated residual value upon the disposition of the equipment at the end of the finance lease term. Operating lease terms generally range from three to five years. At the end of the operating lease term, the lessee has the option to return the equipment to the Company or purchase the equipment at its fair market value. The Company determines its estimate of the residual value of leased vehicles by considering the length of the lease term, the truck model, the expected usage of the truck and anticipated market demand. If the sales price of the truck at the end of the agreement differs from the Company’s estimated residual value, a gain or loss will result. Future market conditions, changes in government regulations and other factors outside the Company’s control could impact the ultimate sales price of trucks returned under these contracts. Residual values are reviewed regularly and adjusted if market conditions warrant. |
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 and may include an allowance for credit losses. Changes in the allowance for credit losses are recognized in the current period earnings and any unrealized gains or losses, net of tax, are 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 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 the result of credit losses or unrealized losses. In assessing credit losses, 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. The Company considers its intent for selling the security and whether it is more likely than not the Company will be able to hold the security until the recovery of any credit losses and unrealized losses. Charges against the allowance for credit losses occur when a security with credit losses is sold or the Company no longer intends to hold that security. |
Receivables | Receivables: Trade and Other Receivables: The Company’s trade and other receivables are recorded at cost, net of allowances. At December 31, 2020 and 2019, respectively, trade and other receivables included trade receivables from dealers and customers of $942.7 and $1,055.0 and other receivables of $254.8 and $251.1 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 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. 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 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 a loan or finance lease for credit reasons and grants a concession, the modification is classified as a troubled debt restructuring (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. In accordance with FASB statement, Prudential Regulator Guidance Concerning Troubled Debt Restructurings , issued on March 22, 2020, short-term modifications granted to customers were not considered TDRs if they were not past due and were seeking to manage their liquidity needs because of the effects of the COVID-19 pandemic. On average, modifications extended contractual terms by approximately three months in 2020 and five months in 2019 and did not have a significant effect on the weighted average term or interest rate of the total portfolio at December 31, 2020 and 2019. 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 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 amortized cost basis, 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 and share similar risk characteristics 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, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss data provides relevant information of expected credit losses. The historical information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and 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 based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and markets in which the Company conducts business. The Company utilizes economic forecasts from third party sources and determines expected losses based on historical experience under similar market conditions. 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 expected 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 amortized cost basis. |
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 an RVG by the Company may be accounted for as an operating lease. Equipment is recorded at cost and is depreciated on the straight-line basis to the lower of the estimated residual value or guarantee value. Lease and guarantee periods generally range from three to five years. Estimated useful lives of the equipment range from three to ten 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 by the straight-line method based on the estimated useful lives of various classes of assets. Certain production tooling and equipment are 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, 2020. Goodwill was $118.8 and $109.1 at December 31, 2020 and 2019, respectively. The increase in value was 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 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 and current data and reasonable expectations for the future regarding the frequency and cost of warranty 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 rate and foreign currency risk. Certain derivative instruments designated as fair value hedges, cash flow hedges or net investment hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedged instruments. 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 derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $20.5 at December 31, 2020 The Company uses regression analysis to assess effectiveness of interest-rate contracts and net investment hedges at inception and uses quantitative analysis to assess subsequent effectiveness 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. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in operating activities in the Consolidated Statements of Cash Flows. As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rate and foreign currency risk. |
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 New Credit Loss Standard In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet on January 1, 2020 for the adoption of ASU 2016-13 was as follows: BALANCE AT DECEMBER 31, 2019 CHANGE DUE TO NEW STANDARD BALANCE AT JANUARY 1, 2020 Consolidated Balance Sheets FINANCIAL SERVICES: ASSETS Finance and other receivables, net $ 12,086.0 $ (6.2 ) $ 12,079.8 Other assets 715.0 .1 715.1 LIABILITIES Deferred taxes and other liabilities 790.2 (1.5 ) 788.7 STOCKHOLDERS' EQUITY Retained earnings 10,398.5 (4.6 ) 10,393.9 Other New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period and will be in effect for a limited time through December 31, 2022. The Company adopted this ASU as of October 1, 2020. The Company will apply the accounting relief as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. The Company does not expect the standard to have a material impact on its consolidated financial statements. In addition to adopting the ASUs disclosed above, the Company adopted the following standards on January 1, 2020, which had no material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. 2018-15 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The FASB also issued the following standard, which is not expected to have a material impact on the Company’s consolidated financial statements. STANDARD DESCRIPTION EFFECTIVE DATE 2018-14 * Compensation – Retirement Benefits – Defined Benefit Plans – General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. January 1, 2021 * The Company will adopt on the effective date. |
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, 2020. 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ASU 2016-13 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Summary of Effect of the Changes Made by the Adoption of ASU | The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet on January 1, 2020 for the adoption of ASU 2016-13 was as follows: BALANCE AT DECEMBER 31, 2019 CHANGE DUE TO NEW STANDARD BALANCE AT JANUARY 1, 2020 Consolidated Balance Sheets FINANCIAL SERVICES: ASSETS Finance and other receivables, net $ 12,086.0 $ (6.2 ) $ 12,079.8 Other assets 715.0 .1 715.1 LIABILITIES Deferred taxes and other liabilities 790.2 (1.5 ) 788.7 STOCKHOLDERS' EQUITY Retained earnings 10,398.5 (4.6 ) 10,393.9 |
Sales and Revenues (Tables)
Sales and Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Revenues by Major Sources | The following table disaggregates Truck, Parts and Other revenues by major sources: Year Ended December 31, 2020 2019 Truck Truck sales $ 12,466.9 $ 19,225.2 Revenues from extended warranties, operating leases and other 697.9 764.3 13,164.8 19,989.5 Parts Parts sales 3,803.3 3,912.1 Revenues from dealer services and other 109.6 112.8 3,912.9 4,024.9 Winch sales and other 76.6 105.3 Truck, Parts and Other sales and revenues $ 17,154.3 $ 24,119.7 |
Financial Services | |
Summary of Financial Services Lease Revenues by Lease Type | The following table summarizes Financial Services lease revenues by lease type: Year Ended December 31, 2020 2019 Finance lease revenues $ 189.2 $ 199.7 Operating lease revenues 802.3 798.2 Total lease revenues $ 991.5 $ 997.9 |
Investments in Marketable Deb_2
Investments in Marketable Debt Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Available For Sale Securities [Abstract] | |
Marketable Debt Securities | Marketable debt securities consisted of the following at December 31: AMORTIZED UNREALIZED UNREALIZED FAIR 2020 COST GAINS LOSSES VALUE U.S. tax-exempt securities $ 388.1 $ 4.4 $ .1 $ 392.4 U.S. corporate securities 229.6 3.3 232.9 U.S. government and agency securities 92.1 2.3 94.4 Non-U.S. corporate securities 406.0 5.5 411.5 Non-U.S. government securities 77.0 .5 77.5 Other debt securities 216.9 3.4 220.3 $ 1,409.7 $ 19.4 $ .1 $ 1,429.0 AMORTIZED UNREALIZED UNREALIZED FAIR 2019 COST GAINS LOSSES VALUE U.S. tax-exempt securities $ 318.1 $ 2.2 $ .1 $ 320.2 U.S. corporate securities 163.8 1.9 165.7 U.S. government and agency securities 128.4 .9 129.3 Non-U.S. corporate securities 347.7 2.3 .2 349.8 Non-U.S. government securities 72.3 .2 .1 72.4 Other debt securities 123.7 1.1 .1 124.7 $ 1,154.0 $ 8.6 $ .5 $ 1,162.1 |
Marketable Debt Securities Continuous Unrealized Losses | Marketable debt securities with continuous unrealized losses and their related fair values were as follows: At December 31, 2020 2019 LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER LESS THAN TWELVE MONTHS TWELVE MONTHS OR GREATER Fair value $ 81.1 $ 1.3 $ 177.0 $ 31.4 Unrealized losses .1 .4 .1 |
Contractual Maturities of Debt Securities | Contractual maturities on marketable debt securities at December 31, 2020 AMORTIZED FAIR Maturities: COST VALUE Within one year $ 313.9 $ 315.7 One to five years 1,088.6 1,106.1 Six to ten years 5.2 5.2 More than ten years 2.0 2.0 $ 1,409.7 $ 1,429.0 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories include the following: At December 31, 2020 2019 Finished products $ 610.0 $ 584.6 Work in process and raw materials 801.9 754.9 1,411.9 1,339.5 Less LIFO reserve (190.0 ) (186.3 ) $ 1,221.9 $ 1,153.2 |
Finance and Other Receivables (
Finance and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Finance and Other Receivables | Finance and other receivables include the following: At December 31, 2020 2019 Loans $ 5,839.1 $ 5,241.7 Finance leases 3,944.7 3,906.7 Dealer wholesale financing 2,012.4 2,907.4 Operating lease receivables and other 151.5 142.6 $ 11,947.7 $ 12,198.4 Less allowance for losses: Loans and leases (120.4 ) (104.4 ) Dealer wholesale financing (3.4 ) (4.3 ) Operating lease receivables and other (3.2 ) (3.7 ) $ 11,820.7 $ 12,086.0 |
Annual Minimum Payments Due on Loans | Annual minimum payments due on loans are as follows: Beginning January 1, LOANS 2021 $ 1,758.4 2022 1,480.1 2023 1,223.6 2024 881.8 2025 380.0 Thereafter 115.2 $ 5,839.1 |
Annual Minimum Payments Due on Finance Lease Receivables and a Reconciliation of the Undiscounted Cash Flows to the Net Investment in Finance Leases | Annual minimum payments due on finance lease r eceivables and a reconciliation of the undiscounted cash flows to the net investment in finance leases are as follows: FINANCE Beginning January 1, LEASES 2021 $ 1,310.4 2022 1,030.5 2023 775.0 2024 458.8 2025 223.4 Thereafter 82.5 3,880.6 Unguaranteed residual values 458.8 Unearned interest on finance leases (394.7 ) Net investment in finance leases $ 3,944.7 |
Allowance for Credit Losses | Allowance for Credit Losses: The allowance for credit losses is summarized as follows: 2020 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL** Balance at January 1 $ 4.3 $ 9.2 $ 101.4 $ 3.7 $ 118.6 Provision for losses (1.0 ) (.8 ) 30.1 .5 28.8 Charge-offs (26.6 ) (1.4 ) (28.0 ) Recoveries 5.3 .4 5.7 Currency translation and other .1 1.8 1.9 Balance at December 31 $ 3.4 8.4 $ 112.0 $ 3.2 $ 127.0 2019 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 6.8 $ 10.0 $ 93.8 $ 3.2 $ 113.8 Provision for losses (1.6 ) (1.0 ) 14.2 3.8 15.4 Charge-offs (.6 ) (24.2 ) (3.6 ) (28.4 ) Recoveries 10.7 .3 11.0 Currency translation and other (.3 ) .2 .7 .6 Balance at December 31 $ 4.3 $ 9.2 $ 95.2 $ 3.7 $ 112.4 * Operating lease and other trade receivables. ** The beginning balance has been adjusted for the adoption of ASU 2016-13. 2018 DEALER CUSTOMER WHOLESALE RETAIL RETAIL OTHER* TOTAL Balance at January 1 $ 6.0 $ 9.4 $ 92.5 $ 9.3 $ 117.2 Provision for losses 1.0 .7 13.6 1.2 16.5 Charge-offs (20.0 ) (7.5 ) (27.5 ) Recoveries 9.9 .4 10.3 Currency translation and other (.2 ) (.1 ) (2.2 ) (.2 ) (2.7 ) Balance at December 31 $ 6.8 $ 10.0 $ 93.8 $ 3.2 $ 113.8 * 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, 2020 WHOLESALE RETAIL RETAIL TOTAL Amortized cost basis for impaired finance receivables evaluated individually $ 1.2 $ 86.7 $ 87.9 Allowance for impaired finance receivables determined individually 5.6 5.6 Amortized cost basis for finance receivables evaluated collectively $ 2,012.4 1,701.9 7,994.0 11,708.3 Allowance for finance receivables determined collectively 3.4 8.4 106.4 118.2 DEALER CUSTOMER At December 31, 2019 WHOLESALE RETAIL RETAIL TOTAL Amortized cost basis for impaired finance receivables evaluated individually $ 2.3 $ 47.6 $ 49.9 Allowance for impaired finance receivables determined individually 6.5 6.5 Amortized cost basis for finance receivables evaluated collectively $ 2,907.4 1,643.3 7,455.2 12,005.9 Allowance for finance receivables determined collectively 4.3 9.2 88.7 102.2 |
Amortized Cost Basis for Finance Receivables that are on Non-Accrual Status | The amortized cost basis for finance receivables that are on non-accrual status is as follows: At December 31, 2020 2019 Dealer: Retail $ 1.2 $ 2.3 Customer retail: Fleet 78.6 40.2 Owner/operator 8.1 7.2 $ 87.9 $ 49.7 |
Amortized Cost Basis of Impaired Loans and Specific Reserve | The amortized cost basis of impaired loans as of December 31, 2020 and 2019 was not significantly different than the unpaid principal balance. DEALER CUSTOMER RETAIL At December 31, 2020 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Impaired loans with a specific reserve $ 22.6 $ 2.1 $ 24.7 Associated allowance (1.6 ) (.3 ) (1.9 ) 21.0 1.8 22.8 Impaired loans with no specific reserve $ 1.2 1.2 Net carrying amount of impaired loans $ 1.2 $ 21.0 $ 1.8 $ 24.0 Average amortized cost basis $ 1.6 $ 26.5 $ 2.8 $ 30.9 DEALER CUSTOMER RETAIL At December 31, 2019 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Impaired loans with a specific reserve $ 10.9 $ 3.1 $ 14.0 Associated allowance (2.1 ) (.6 ) (2.7 ) 8.8 2.5 11.3 Impaired loans with no specific reserve $ 2.3 6.7 .4 9.4 Net carrying amount of impaired loans $ 2.3 $ 15.5 $ 2.9 $ 20.7 Average amortized cost basis $ 4.9 $ 2.4 $ 16.6 $ 3.4 $ 27.3 |
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: Year Ended December 31, 2020 2019 2018 Dealer: Retail $ .2 $ .2 Customer retail: Fleet 1.5 1.3 $ 2.0 Owner/operator .2 .2 .2 $ 1.9 $ 1.7 $ 2.2 |
Amortized Cost Basis of Finance Receivables by Credit Quality Indicator and Portfolio Class | The table below summarizes the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class. Revolving At December 31, 2020 Loans 2020 2019 2018 2017 2016 Prior Total Dealer: Wholesale: Performing $ 2,004.5 $ 2,004.5 Watch 7.9 7.9 $ 2,012.4 $ 2,012.4 Retail: Performing $ 20.7 $ 504.2 $ 474.9 $ 268.0 $ 180.1 $ 100.4 $ 132.0 $ 1,680.3 Watch 5.2 10.5 4.5 1.4 21.6 At-risk 1.2 1.2 $ 20.7 $ 509.4 $ 485.4 $ 272.5 $ 181.5 $ 101.6 $ 132.0 $ 1,703.1 Total Dealer $ 2,033.1 $ 509.4 $ 485.4 $ 272.5 $ 181.5 $ 101.6 $ 132.0 $ 3,715.5 Customer Retail: Fleet: Performing $ 2,664.9 $ 1,921.6 $ 1,203.7 $ 533.7 $ 234.2 $ 65.2 $ 6,623.3 Watch 13.5 17.8 11.8 5.9 1.5 1.2 51.7 At-risk 8.0 37.0 18.2 12.2 2.4 .8 78.6 $ 2,686.4 $ 1,976.4 $ 1,233.7 $ 551.8 $ 238.1 $ 67.2 $ 6,753.6 Owner/Operator: Performing $ 554.6 $ 376.4 $ 225.1 $ 105.2 $ 41.2 $ 9.1 $ 1,311.6 Watch 1.6 2.7 2.0 .7 .2 .2 7.4 At-risk .9 2.1 3.2 1.2 .4 .3 8.1 $ 557.1 $ 381.2 $ 230.3 $ 107.1 $ 41.8 $ 9.6 $ 1,327.1 Total Customer Retail $ 3,243.5 $ 2,357.6 $ 1,464.0 $ 658.9 $ 279.9 $ 76.8 $ 8,080.7 Total $ 2,033.1 $ 3,752.9 $ 2,843.0 $ 1,736.5 $ 840.4 $ 381.5 $ 208.8 $ 11,796.2 |
Finance 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, 2020 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Current and up to 30 days past due $ 2,012.4 $ 1,703.1 $ 6,718.3 $ 1,314.7 $ 11,748.5 31 – 60 days past due 12.3 6.5 18.8 Greater than 60 days past due 23.0 5.9 28.9 $ 2,012.4 $ 1,703.1 $ 6,753.6 $ 1,327.1 $ 11,796.2 DEALER CUSTOMER RETAIL At December 31, 2019 WHOLESALE RETAIL FLEET OWNER/ OPERATOR TOTAL Current and up to 30 days past due $ 2,907.4 $ 1,645.6 $ 6,297.1 $ 1,140.7 $ 11,990.8 31 – 60 days past due 23.0 8.7 31.7 Greater than 60 days past due 27.6 5.7 33.3 $ 2,907.4 $ 1,645.6 $ 6,347.7 $ 1,155.1 $ 12,055.8 |
Pre- and Post-Modification Amortized Cost Basis Balances by Portfolio Class | At modification date, the pre-modification and post-modification amortized cost basis balances for finance receivables modified during the period by portfolio class were as follows: 2020 2019 AMORTIZED COST BASIS AMORTIZED COST BASIS PRE-MODIFICATION POST-MODIFICATION PRE-MODIFICATION POST-MODIFICATION Fleet $ 72.5 $ 72.5 $ 2.2 $ 2.2 Owner/operator 2.2 2.2 .3 .3 $ 74.7 $ 74.7 $ 2.5 $ 2.5 |
Equipment On Operating Leases (
Equipment On Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lessor Disclosure [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 presented below. TRUCK, PARTS AND OTHER FINANCIAL SERVICES At December 31, 2020 2019 2020 2019 Equipment on operating leases $ 576.8 $ 706.3 $ 4,493.9 $ 4,350.0 Less allowance for depreciation (154.9 ) (160.8 ) (1,331.1 ) (1,247.4 ) $ 421.9 $ 545.5 $ 3,162.8 $ 3,102.6 |
Residual Value Obligation and Deferred Lease Revenue | These amounts are summarized below: TRUCK, PARTS AND OTHER At December 31, 2020 2019 Residual value guarantees $ 358.4 $ 439.6 Deferred lease revenues 99.0 147.7 $ 457.4 $ 587.3 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant And Equipment | Property, plant and equipment include the following: At December 31, USEFUL LIVES 2020 2019 Land $ 286.4 $ 271.8 Buildings and improvements 10 - 40 years 1,474.7 1,382.2 Machinery, equipment and production tooling 3 - 12 years 4,234.4 3,998.2 Construction in progress 1,081.8 741.7 7,077.3 6,393.9 Less allowance for depreciation (3,806.9 ) (3,510.1 ) $ 3,270.4 $ 2,883.8 |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other | Accounts payable, accrued expenses and other include the following: At December 31, 2020 2019 Truck, Parts and Other: Accounts payable $ 1,176.2 $ 1,115.7 Product support liabilities 514.6 508.1 Accrued expenses 446.5 467.4 Right-of-return liabilities 337.3 226.0 Accrued capital expenditures 288.8 270.3 Salaries and wages 260.8 271.8 Other 389.7 334.9 $ 3,413.9 $ 3,194.2 |
Product Support Liabilities (Ta
Product Support Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Changes in Product Support Liabilities, Warranty Reserves | WARRANTY RESERVES 2020 2019 2018 Balance at January 1 $ 440.0 $ 380.2 $ 298.8 Cost accruals 295.0 386.3 331.9 Payments (437.2 ) (343.7 ) (271.8 ) Change in estimates for pre-existing warranties 84.1 19.8 25.6 Currency translation and other 7.8 (2.6 ) (4.3 ) Balance at December 31 $ 389.7 $ 440.0 $ 380.2 |
Changes in Deferred Revenues on Extended Warranties and R&M Contracts | DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS 2020 2019 2018 Balance at January 1 $ 801.4 $ 699.9 $ 653.9 Deferred revenues 409.9 499.1 448.2 Revenues recognized (438.9 ) (396.4 ) (385.0 ) Currency translation 23.4 (1.2 ) (17.2 ) Balance at December 31 $ 795.8 $ 801.4 $ 699.9 |
Product Support Liabilities | Product support liabilities are included in the accompanying Consolidated Balance Sheets as follows: WARRANTY RESERVES DEFERRED REVENUES At December 31, 2020 2019 2020 2019 Truck, Parts and Other: Accounts payable, accrued expenses and other $ 245.6 $ 270.6 $ 269.0 $ 237.5 Other liabilities 144.1 169.4 513.1 547.6 Financial Services: Accounts payable, accrued expenses and other 5.7 6.8 Deferred taxes and other liabilities 8.0 9.5 $ 389.7 $ 440.0 $ 795.8 $ 801.4 |
Borrowings And Credit Arrange_2
Borrowings And Credit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financial Services Borrowings | Financial Services borrowings include the following: At December 31, 2020 2019 EFFECTIVE EFFECTIVE RATE BORROWINGS RATE BORROWINGS Commercial paper .4 % $ 3,113.5 1.5 % $ 3,797.2 Bank loans 5.9 % 230.9 7.1 % 313.0 3,344.4 4,110.2 Term notes 1.7 % 7,508.9 1.9 % 7,112.5 1.4 % $ 10,853.3 1.9 % $ 11,222.7 |
Annual Maturities of Financial Services Borrowings | The annual maturities of the Financial Services borrowings are as follows: COMMERCIAL BANK TERM Beginning January 1, PAPER LOANS NOTES TOTAL 2021 $ 3,114.2 $ 40.1 $ 2,241.7 $ 5,396.0 2022 121.6 2,231.9 2,353.5 2023 19.0 2,231.9 2,250.9 2024 25.1 415.4 440.5 2025 25.1 400.0 425.1 $ 3,114.2 $ 230.9 $ 7,520.9 $ 10,866.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2020 2019 Finance lease cost Amortization of right-of-use assets $ .9 $ .9 Interest on lease liabilities .1 .1 Operating lease cost 16.6 16.9 Short-term lease cost .8 .7 Variable lease cost 1.7 1.8 Total lease cost $ 20.1 $ 20.4 |
Schedule of Balance Sheet Information Related to Leases | Balance sheet information related to leases was as follows: At December 31, 2020 2019 OPERATING LEASES FINANCE LEASES OPERATING LEASES FINANCE LEASES TRUCK, PARTS AND OTHER: Other noncurrent assets $ 30.9 $ 1.0 $ 31.7 $ 1.1 FINANCIAL SERVICES: Other assets 9.0 5.2 Total right-of-use assets $ 39.9 $ 1.0 $ 36.9 $ 1.1 TRUCK, PARTS AND OTHER: Accounts payable, accrued expenses and other $ 11.4 $ .5 $ 13.0 $ .7 Other liabilities 20.3 .5 19.5 .5 FINANCIAL SERVICES: Accounts payable, accrued expenses and other 2.0 1.5 Deferred taxes and other liabilities 6.6 3.7 Total lease liabilities $ 40.3 $ 1.0 $ 37.7 $ 1.2 |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate | The weighted-average remaining lease term and discount rate are as follows at December 31: 2020 2019 OPERATING LEASES FINANCE LEASES OPERATING LEASES FINANCE LEASES Weighted-average remaining lease term 5.7 years 2.3 years 5.1 years 2.2 years Weighted-average discount rate 1.4 % 2.5 % 1.9 % 4.0 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: Beginning January 1, OPERATING LEASES FINANCE LEASES 2021 $ 13.7 $ .6 2022 10.6 .2 2023 5.8 .2 2024 3.2 .1 2025 2.4 Thereafter 6.0 Total lease payments 41.7 1.1 Less: interest (1.4 ) (.1 ) Total lease liabilities $ 40.3 $ 1.0 |
Schedule of Cash Flow Information Related to Leases | Cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 17.2 $ 17.0 Operating cash flows from finance leases .1 .2 Financing cash flows from finance leases .9 1.0 Right-of-use assets obtained in exchange for lease liabilities Operating leases 19.9 8.9 Finance leases .5 .7 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 Q for definitions of fair value levels. FAIR VALUE HIERARCHY At December 31, 2020 TARGET LEVEL 1 LEVEL 2 TOTAL MEASURED AT NAV TOTAL Equities: U.S. equities $ 1,047.0 $ 1,047.0 Global equities 1,140.6 1,140.6 Total equities 50 - 70% 2,187.6 2,187.6 Fixed income: U.S. fixed income $ 83.9 $ 296.0 $ 379.9 $ 719.9 $ 1,099.8 Non-U.S. fixed income 30.4 30.4 372.8 403.2 Total fixed income 30 - 50% 83.9 326.4 410.3 1,092.7 1,503.0 Cash and other 2.6 99.8 102.4 .4 102.8 Total plan assets $ 86.5 $ 426.2 $ 512.7 $ 3,280.7 $ 3,793.4 FAIR VALUE HIERARCHY At December 31, 2019 TARGET LEVEL 1 LEVEL 2 TOTAL MEASURED AT NAV TOTAL Equities: U.S. equities $ 860.1 $ 860.1 Global equities 973.1 973.1 Total equities 50 - 70% 1,833.2 1,833.2 Fixed income: U.S. fixed income $ 90.6 $ 260.3 $ 350.9 $ 611.7 $ 962.6 Non-U.S. fixed income 28.1 28.1 322.0 350.1 Total fixed income 30 - 50% 90.6 288.4 379.0 933.7 1,312.7 Cash and other 10.6 68.2 78.8 1.7 80.5 Total plan assets $ 101.2 $ 356.6 $ 457.8 $ 2,768.6 $ 3,226.4 |
Weighted Average Assumptions of Pension Plans | The following weighted average assumptions relate to all pension plans of the Company: At December 31, 2020 2019 Discount rate 2.2 % 2.9 % Rate of increase in future compensation levels 3.7 % 3.8 % Assumed long-term rate of return on plan assets 6.2 % 6.3 % |
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: At December 31, 2020 2019 Change in projected benefit obligation: Benefit obligation at January 1 $ 3,234.4 $ 2,655.4 Service cost 130.4 102.0 Interest cost 83.0 95.6 Benefits paid (120.2 ) (127.0 ) Actuarial loss 379.5 478.0 Currency translation and other 54.4 30.0 Participant contributions .4 .4 Projected benefit obligation at December 31 $ 3,761.9 $ 3,234.4 Change in plan assets: Fair value of plan assets at January 1 $ 3,226.4 $ 2,699.2 Employer contributions 184.9 35.7 Actual return on plan assets 453.4 588.1 Benefits paid (120.2 ) (127.0 ) Currency translation and other 48.5 30.0 Participant contributions .4 .4 Fair value of plan assets at December 31 $ 3,793.4 $ 3,226.4 Funded status at December 31 $ 31.5 $ (8.0 ) |
Amounts Recorded on Balance Sheets | At December 31, 2020 2019 Amounts recorded on Balance Sheet: Other noncurrent assets $ 222.1 $ 146.5 Accounts payable, accrued expenses and other 25.5 39.9 Other liabilities 165.1 114.6 Accumulated other comprehensive loss: Actuarial loss 571.7 512.5 Prior service cost 6.3 5.1 Net initial transition amount .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, 2020 2019 Projected benefit obligation $ 167.9 $ 170.6 Accumulated benefit obligation 148.7 150.1 Fair value of plan assets 13.5 23.4 |
Components of Pension Expense | The components of pension expense are as follows: Year Ended December 31, 2020 2019 2018 Service cost $ 130.4 $ 102.0 $ 108.3 Interest on projected benefit obligation 83.0 95.6 85.8 Expected return on assets (190.6 ) (176.6 ) (177.2 ) Amortization of prior service costs 1.5 1.4 1.4 Recognized actuarial loss 44.2 20.5 35.3 Settlement loss 11.6 Net pension expense $ 80.1 $ 42.9 $ 53.6 |
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 2020 2019 2018 Metal and Electrical Engineering Industry Pension 135668 $ 33.9 $ 27.8 $ 27.9 Western Metal Industry Pension Plan 91-6033499 001 3.0 3.8 2.7 Other plans .9 1.2 1.2 $ 37.8 $ 32.8 $ 31.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 Domestic $ 1,122.9 $ 2,201.1 $ 1,775.2 Foreign 535.0 898.1 1,035.0 $ 1,657.9 $ 3,099.2 $ 2,810.2 |
Components of Provision for Income Taxes | The components of the Company’s provision for income taxes include the following: Year Ended December 31, 2020 2019 2018 Current provision: Federal $ 182.5 $ 352.3 $ 267.1 State 44.9 96.8 67.5 Foreign 132.6 191.4 263.0 360.0 640.5 597.6 Deferred (benefit) provision: Federal (11.2 ) 40.7 22.6 State 1.7 (4.3 ) 1.3 Foreign 9.0 34.4 (6.4 ) (.5 ) 70.8 17.5 $ 359.5 $ 711.3 $ 615.1 |
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: 2020 2019 2018 Statutory rate 21.0 % 21.0 % 21.0 % Effect of: Transition tax (.2 ) State 2.3 2.3 2.2 Research and development tax credit (1.4 ) (.9 ) (.8 ) Tax on foreign earnings .8 .9 1.0 Other, net (1.0 ) (.3 ) (1.3 ) 21.7 % 23.0 % 21.9 % |
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, 2020 2019 Assets: Accrued expenses $ 205.3 $ 203.5 Net operating loss and tax credit carryforwards 140.1 132.0 Postretirement benefit plans 4.9 Allowance for losses on receivables 36.0 31.4 Goodwill and intangibles 10.0 18.7 Other 122.9 103.3 514.3 493.8 Valuation allowance (102.1 ) (118.5 ) 412.2 375.3 Liabilities: Financial Services leasing depreciation (765.1 ) (777.5 ) Depreciation and amortization (168.0 ) (159.4 ) Postretirement benefit plans (3.0 ) Other (46.1 ) (28.9 ) (982.2 ) (965.8 ) Net deferred tax liability $ (570.0 ) $ (590.5 ) The balance sheet classifications of the Company’s deferred tax assets and liabilities are as follows: At December 31, 2020 2019 Truck, Parts and Other: Other noncurrent assets, net $ 90.4 $ 115.4 Other liabilities (3.5 ) (5.3 ) Financial Services: Other assets 46.8 36.8 Deferred taxes and other liabilities (703.7 ) (737.4 ) Net deferred tax liability $ (570.0 ) $ (590.5 ) |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2020 2019 2018 Balance at January 1 $ 30.7 $ 21.2 $ 22.9 Additions for tax positions related to the current year 5.5 6.5 11.2 Additions for tax positions related to prior years .3 3.0 Reductions for tax positions related to prior years (4.2 ) Reductions related to settlements (5.7 ) Lapse of statute of limitations (7.8 ) (7.2 ) Balance at December 31 $ 24.5 $ 30.7 $ 21.2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 $ (15.3 ) $ 6.1 $ (517.7 ) $ (573.2 ) $ (1,100.1 ) Recorded into AOCI (78.4 ) 10.3 (104.0 ) 115.6 (56.5 ) Reclassified out of AOCI 64.5 (1.8 ) 43.6 106.3 Net other comprehensive (loss) income (13.9 ) 8.5 (60.4 ) 115.6 49.8 Balance at December 31, 2020 $ (29.2 ) $ 14.6 $ (578.1 ) $ (457.6 ) $ (1,050.3 ) DERIVATIVE CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION TOTAL Balance at January 1, 2019 $ 2.0 $ (2.3 ) $ (477.8 ) $ (620.4 ) $ (1,098.5 ) Recorded into AOCI (57.0 ) 8.7 (56.8 ) 47.2 (57.9 ) Reclassified out of AOCI 39.7 (.3 ) 16.9 56.3 Net other comprehensive (loss) income (17.3 ) 8.4 (39.9 ) 47.2 (1.6 ) Balance at December 31, 2019 $ (15.3 ) $ 6.1 $ (517.7 ) $ (573.2 ) $ (1,100.1 ) DERIVATIVE CONTRACTS MARKETABLE DEBT SECURITIES PENSION PLANS FOREIGN CURRENCY TRANSLATION TOTAL Balance at January 1, 2018 $ 1.2 $ (1.8 ) $ (375.6 ) $ (417.4 ) $ (793.6 ) Recorded into AOCI 90.9 .1 (86.8 ) (213.3 ) (209.1 ) Reclassified out of AOCI (90.5 ) (.1 ) 28.0 (62.6 ) Net other comprehensive income (loss) .4 (58.8 ) (213.3 ) (271.7 ) Reclassifications to retained earnings in accordance with ASU 2018-02 .4 (.5 ) (43.4 ) 10.3 (33.2 ) Balance at December 31, 2018 $ 2.0 $ (2.3 ) $ (477.8 ) $ (620.4 ) $ (1,098.5 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI during the years ended December 31, 2020, 2019 and 2018 were as follows: AMOUNT AOCI COMPONENTS LINE ITEM IN THE CONSOLIDATED STATEMENTS OF INCOME 2020 2019 2018 Unrealized (gains) and losses on derivative contracts: Truck, Parts and Other Foreign-exchange contracts Net sales and revenues $ (4.0 ) $ 21.2 $ 5.4 Cost of sales and revenues 1.7 (4.1 ) (6.6 ) Interest and other (income), net (4.6 ) 2.1 (1.6 ) Financial Services Interest-rate contracts Interest and other borrowing expenses 94.5 32.5 (118.7 ) Pre-tax expense increase (reduction) 87.6 51.7 (121.5 ) Tax (benefit) expense (23.1 ) (12.0 ) 31.0 After-tax expense increase (reduction) 64.5 39.7 (90.5 ) Unrealized Marketable debt securities Investment income (2.4 ) (.4 ) (.2 ) Tax expense .6 .1 .1 After-tax income increase (1.8 ) (.3 ) (.1 ) Unrealized losses on pension plans: Truck, Parts and Other Actuarial loss Interest and other (income), net 44.2 20.5 35.3 Prior service costs Interest and other (income), net 1.5 1.4 1.4 Settlement loss Interest and other (income), net 11.6 Pre-tax expense increase 57.3 21.9 36.7 Tax benefit (13.7 ) (5.0 ) (8.7 ) After-tax expense increase 43.6 16.9 28.0 Total reclassifications out of AOCI $ 106.3 $ 56.3 $ (62.6 ) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
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, 2020 2019 ASSETS LIABILITIES ASSETS LIABILITIES Derivatives designated under hedge accounting: Interest-rate contracts: Financial Services: Other assets $ 16.4 $ 45.8 Deferred taxes and other liabilities $ 116.1 $ 31.0 Foreign-exchange contracts: Truck, Parts and Other: Other current assets 2.7 10.1 Accounts payable, accrued expenses and other 35.9 9.2 Financial Services: Deferred taxes and other liabilities 1.2 $ 19.1 $ 153.2 $ 55.9 $ 40.2 Derivatives not designated as hedging instruments: Foreign-exchange contracts: Truck, Parts and Other: Other current assets $ 1.1 $ .4 Accounts payable, accrued expenses and other $ 3.3 $ 1.8 Financial Services: Other assets .3 Deferred taxes and other liabilities 3.4 2.3 $ 1.4 $ 6.7 $ .4 $ 4.1 Gross amounts recognized in Balance Sheet $ 20.5 $ 159.9 $ 56.3 $ 44.3 Less amounts not offset in financial instruments: Truck, Parts and Other: Foreign-exchange contracts (2.1 ) (2.1 ) (.4 ) (.4 ) Financial Services: Interest-rate contracts (12.0 ) (12.0 ) (8.6 ) (8.6 ) Pro forma net amount $ 6.4 $ 145.8 $ 47.3 $ 35.3 |
Amount of (Gain) Loss from Derivative Financial Instruments Reclassified from AOCI into Consolidated Statements of Income | The following table presents the amount of (gain) loss from derivative financial instruments reclassified from AOCI into the Consolidated Statements of Income: Year Ended December 31, 2020 2019 2018 Truck, Parts and Other: Cash flow hedges $ (6.9 ) $ 19.2 $ (2.8 ) Net investment hedge (5.6 ) (4.6 ) Total $ (12.5 ) $ 14.6 $ (2.8 ) Financial Services: Fair value hedges 1.1 1.5 1.8 Cash flow hedges 94.5 32.5 (118.7 ) Total $ 95.6 $ 34.0 $ (116.9 ) |
Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges | The following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges: At December 31, 2020 2019 Financial Services Term notes: Carrying amount of hedged liabilities $ 90.9 $ 90.5 Cumulative basis adjustment included in the carrying amount (.9 ) (.5 ) |
Pre-Tax Effects of (Loss) Gain Derivative Instruments Recognized in OCI | The following table presents the pre-tax effects of (loss) gain on cash flow hedges recognized in other comprehensive income (loss) (OCI): Year Ended December 31, 2020 2019 2018 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 $ 2.8 $ (31.7 ) $ 4.5 Financial Services $ (107.3 ) (.8 ) $ (44.4 ) $ 117.1 $ (107.3 ) $ 2.0 $ (44.4 ) $ (31.7 ) $ 117.1 $ 4.5 |
(Gain) Loss Recognized in Earnings to Derivatives not Designated as Hedging Instruments | The loss (gain) recognized in earnings related to derivatives not designated as hedging instruments was as follows: Year Ended December 31, 2020 2019 2018 INTEREST- FOREIGN- INTEREST- FOREIGN- INTEREST- FOREIGN- RATE EXCHANGE RATE EXCHANGE RATE EXCHANGE CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS Truck, Parts and Other: Cost of sales and revenues $ .7 $ .5 $ (.3 ) Interest and other (income), net 2.3 5.4 6.9 Financial Services: Interest and other borrowing expenses 9.4 (10.1 ) (14.9 ) Selling, general and administrative .8 .1 1.7 $ 13.2 $ (4.1 ) $ (6.6 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 392.4 $ 392.4 U.S. corporate securities 232.9 232.9 U.S. government and agency securities $ 86.5 7.9 94.4 Non-U.S. corporate securities 411.5 411.5 Non-U.S. government securities 77.5 77.5 Other debt securities 220.3 220.3 Total marketable debt securities $ 86.5 $ 1,342.5 $ 1,429.0 Derivatives Cross currency swaps $ 14.8 $ 14.8 Interest-rate swaps 1.6 1.6 Foreign-exchange contracts 4.1 4.1 Total derivative assets $ 20.5 $ 20.5 Liabilities: Derivatives Cross currency swaps $ 77.6 $ 77.6 Interest-rate swaps 38.5 38.5 Foreign-exchange contracts 43.8 43.8 Total derivative liabilities $ 159.9 $ 159.9 At December 31, 2019 LEVEL 1 LEVEL 2 TOTAL Assets: Marketable debt securities U.S. tax-exempt securities $ 320.2 $ 320.2 U.S. corporate securities 165.7 165.7 U.S. government and agency securities $ 128.4 .9 129.3 Non-U.S. corporate securities 349.8 349.8 Non-U.S. government securities 72.4 72.4 Other debt securities 124.7 124.7 Total marketable debt securities $ 128.4 $ 1,033.7 $ 1,162.1 Derivatives Cross currency swaps $ 43.8 $ 43.8 Interest-rate swaps 2.0 2.0 Foreign-exchange contracts 10.5 10.5 Total derivative assets $ 56.3 $ 56.3 Liabilities: Derivatives Cross currency swaps $ 13.5 $ 13.5 Interest-rate swaps 17.5 17.5 Foreign-exchange contracts 13.3 13.3 Total derivative liabilities $ 44.3 $ 44.3 |
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, 2020 2019 CARRYING FAIR CARRYING FAIR AMOUNT VALUE AMOUNT VALUE Assets: Financial Services fixed rate loans $ 5,319.2 $ 5,429.5 $ 4,914.4 $ 4,992.2 Liabilities: Financial Services fixed rate debt 6,482.0 6,648.6 5,925.9 5,990.7 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions Used in Determining Fair Value of Option Awards | The assumptions used in determining the fair value of the option awards for each of the grant years are as follows: 2020 2019 2018 Risk-free interest rate 1.54 % 2.55 % 2.64 % Expected volatility 23 % 23 % 23 % Expected dividend yield 4.1 % 4.9 % 3.8 % Expected term 6 years 6 years 6 years Weighted average grant date fair value of options per share $ 10.02 $ 8.26 $ 10.67 |
Activity Under Company's Stock Plans | A summary of activity under the Company’s stock plans is presented below: 2020 2019 2018 Intrinsic value of options exercised $ 26.9 $ 31.9 $ 13.4 Cash received from stock option exercises 53.8 60.9 19.7 Tax benefit related to stock award exercises 3.8 3.8 2.4 Stock-based compensation 13.0 15.1 13.2 Tax benefit related to stock-based compensation 1.6 1.9 1.9 |
Stock Option Activity | The summary of options as of December 31, 2020 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 3,488,300 $ 60.18 Granted 641,700 76.18 Exercised (949,900 ) 56.68 Cancelled (63,600 ) 69.75 Options outstanding at December 31 3,116,500 $ 64.34 6.48 $ 68.4 Vested and expected to vest 3,014,300 $ 64.06 6.40 $ 67.0 Exercisable 1,323,200 $ 56.63 4.15 $ 39.2 * Weighted Average |
Nonvested Restricted Shares Activity | The summary of nonvested restricted shares as of December 31, 2020 and changes during the year then ended is presented below: NUMBER GRANT DATE NONVESTED SHARES OF SHARES FAIR VALUE* Nonvested awards outstanding at January 1 150,500 $ 65.92 Granted 94,400 76.78 Vested (96,700 ) 69.46 Forfeited (5,800 ) 71.47 Nonvested awards outstanding at December 31 142,400 $ 70.49 * |
Dilutive and Antidilutive Options | The dilutive and antidilutive options are shown separately in the table below: Year Ended December 31, 2020 2019 2018 Additional shares 607,800 621,300 785,100 Antidilutive options 686,100 1,489,400 1,176,600 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Area Data | Geographic Area Data 2020 2019 2018 Net sales and revenues: United States $ 10,526.6 $ 15,119.3 $ 13,165.7 Europe 4,871.2 6,104.7 6,071.9 Other 3,330.7 4,375.7 4,258.1 $ 18,728.5 $ 25,599.7 $ 23,495.7 Property, plant and equipment, net: United States $ 1,633.0 $ 1,556.4 $ 1,353.8 Belgium 596.2 395.7 237.4 The Netherlands 499.0 399.8 397.8 Other 542.2 531.9 491.9 $ 3,270.4 $ 2,883.8 $ 2,480.9 Equipment on operating leases, net: United States $ 1,219.0 $ 1,390.1 $ 1,405.1 Poland 359.4 343.5 327.8 France 349.7 315.0 246.8 Germany 346.4 358.3 361.0 Spain 310.8 276.1 249.8 Mexico 302.3 320.5 306.4 United Kingdom 125.4 113.6 130.3 Other 571.7 531.0 614.4 $ 3,584.7 $ 3,648.1 $ 3,641.6 |
Segment Reporting Information by Segment | Business Segment Data 2020 2019 2018 Net sales and revenues: Truck $ 13,643.0 $ 20,403.5 $ 18,863.1 Less intersegment (478.2 ) (414.0 ) (676.1 ) External customers 13,164.8 19,989.5 18,187.0 Parts 3,962.7 4,073.1 3,896.2 Less intersegment (49.8 ) (48.2 ) (57.3 ) External customers 3,912.9 4,024.9 3,838.9 Other 76.6 105.3 112.7 17,154.3 24,119.7 22,138.6 Financial Services 1,574.2 1,480.0 1,357.1 $ 18,728.5 $ 25,599.7 $ 23,495.7 Income (loss) before income taxes: Truck $ 581.4 $ 1,904.9 $ 1,672.1 Parts 799.3 830.8 768.6 Other 18.2 (17.7 ) 2.7 1,398.9 2,718.0 2,443.4 Financial Services 223.1 298.9 305.9 Investment income 35.9 82.3 60.9 $ 1,657.9 $ 3,099.2 $ 2,810.2 Depreciation and amortization: Truck $ 292.2 $ 381.9 $ 406.2 Parts 10.8 10.2 9.2 Other 20.8 20.3 18.4 323.8 412.4 433.8 Financial Services 725.2 664.9 620.3 $ 1,049.0 $ 1,077.3 $ 1,054.1 Expenditures for long-lived assets: Truck $ 556.0 $ 664.9 $ 778.5 Parts 18.4 46.2 29.4 Other 36.4 51.0 38.8 610.8 762.1 846.7 Financial Services 1,046.7 1,378.6 1,085.1 $ 1,657.5 $ 2,140.7 $ 1,931.8 Segment assets: Truck $ 5,971.9 $ 5,609.0 $ 5,347.3 Parts 1,255.6 1,172.1 1,090.9 Other 398.7 339.2 345.0 Cash and marketable securities 4,834.0 5,169.4 4,299.6 12,460.2 12,289.7 11,082.8 Financial Services 15,799.8 16,071.4 14,399.6 $ 28,260.0 $ 28,361.1 $ 25,482.4 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | QUARTER FIRST SECOND THIRD FOURTH (millions, except per share data) 2020 Truck, Parts and Other: Net sales and revenues $ 4,778.0 $ 2,701.9 $ 4,538.4 $ 5,136.0 Cost of sales and revenues 4,189.6 2,441.5 3,958.3 4,487.0 Research and development 71.0 66.5 64.7 71.7 Financial Services: Revenues 383.7 360.3 397.6 432.6 Interest and other borrowing expenses 56.4 46.9 45.2 43.6 Depreciation and other expenses 229.4 224.1 262.5 292.0 Net Income 359.4 147.7 385.5 405.8 Net Income Per Share:* Basic $ 1.04 $ .43 $ 1.11 $ 1.17 Diluted 1.03 .43 1.11 1.17 2019 Truck, Parts and Other: Net sales and revenues $ 6,138.1 $ 6,266.5 $ 6,004.2 $ 5,710.9 Cost of sales and revenues 5,217.1 5,341.7 5,106.8 4,890.0 Research and development 78.3 82.5 82.2 83.6 Financial Services: Revenues 349.5 361.4 362.8 406.3 Interest and other borrowing expenses 53.4 60.0 59.6 57.5 Depreciation and other expenses 177.4 183.6 195.3 241.9 Net Income 629.0 619.7 607.9 531.3 Net Income Per Share: Basic $ 1.81 $ 1.79 $ 1.75 $ 1.53 Diluted 1.81 1.78 1.75 1.53 * 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 Polici_4
Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |||||||||||
Reportable segments | Segment | 3 | ||||||||||
Term used to calculate historical weighted average return rate | 7 years | ||||||||||
Estimated value of trucks to be returned | $ 627,900,000 | $ 473,000,000 | $ 627,900,000 | $ 473,000,000 | |||||||
Estimated sales returned liabilities | 664,100,000 | 503,400,000 | |||||||||
Payment to acquire commitment value | 1,184,700,000 | ||||||||||
Deferred revenue | 795,800,000 | 801,400,000 | 795,800,000 | 801,400,000 | |||||||
Estimated value of returned goods | 62,200,000 | 56,300,000 | $ 62,200,000 | 56,300,000 | |||||||
Liquid investments maturity period | 90 days | ||||||||||
Goodwill | 118,800,000 | 109,100,000 | $ 118,800,000 | 109,100,000 | |||||||
Derivative assets | $ 20,500,000 | 56,300,000 | $ 20,500,000 | 56,300,000 | |||||||
ASU 2016-13 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |||||||||
Change in accounting principle, accounting standards update adoption date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||
ASU 2020-04 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |||||||||
Change in accounting principle, accounting standards update adoption date | Oct. 1, 2020 | Oct. 1, 2020 | |||||||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | |||||||||
ASU 2018-13 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |||||||||
Change in accounting principle, accounting standards update adoption date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | |||||||||
ASU 2018-15 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |||||||||
Change in accounting principle, accounting standards update adoption date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | |||||||||
ASU 2019-12 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Change in accounting principle, accounting standards update, adopted [true false] | true | true | |||||||||
Change in accounting principle, accounting standards update adoption date | Jan. 1, 2020 | Jan. 1, 2020 | |||||||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | |||||||||
ASU 2018-14 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Change in accounting principle, accounting standards update adoption date | Jan. 1, 2021 | Jan. 1, 2021 | |||||||||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | true | |||||||||
Designated under hedge accounting | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Derivative assets | $ 19,100,000 | 55,900,000 | $ 19,100,000 | 55,900,000 | |||||||
Designated under hedge accounting | Interest-Rate Contracts | Other Assets | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Derivative assets | 20,500,000 | 20,500,000 | |||||||||
Trade Receivables | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Trade and other receivables, net | 942,700,000 | 1,055,000,000 | 942,700,000 | 1,055,000,000 | |||||||
Other Receivables | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Trade and other receivables, net | 254,800,000 | 251,100,000 | 254,800,000 | 251,100,000 | |||||||
Financial Services | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Total operating lease income | 802,300,000 | 798,200,000 | |||||||||
Depreciation and other expenses | 292,000,000 | $ 262,500,000 | $ 224,100,000 | $ 229,400,000 | 241,900,000 | $ 195,300,000 | $ 183,600,000 | $ 177,400,000 | |||
Financing receivable, recorded investment, 90 days past due and still accruing | 0 | 0 | $ 0 | $ 0 | |||||||
Months contractual terms extended | 3 months | 5 months | |||||||||
Financial Services | Designated under hedge accounting | Interest-Rate Contracts | Other Assets | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Derivative assets | 16,400,000 | 45,800,000 | $ 16,400,000 | $ 45,800,000 | |||||||
Financial Services | Operating Lease | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Total operating lease income | 802,300,000 | 798,200,000 | $ 797,100,000 | ||||||||
Depreciation and other expenses | 776,500,000 | 721,600,000 | $ 686,900,000 | ||||||||
Truck, Parts and Other | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Sales returns liabilities in estimated returns | 337,300,000 | 226,000,000 | 337,300,000 | 226,000,000 | |||||||
Trade and other receivables, net | 1,197,500,000 | 1,306,100,000 | $ 1,197,500,000 | $ 1,306,100,000 | |||||||
Trade receivable days outstanding considered past due | 30 days | 30 days | 30 days | ||||||||
Allowance for credit losses for Truck, Parts and Other | 600,000 | 600,000 | $ 600,000 | $ 600,000 | |||||||
Net charge-offs | $ 0 | 300,000 | $ 100,000 | ||||||||
Engines manufactured by PACCAR | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Warranty period | 2 years | ||||||||||
Trucks | Truck Sales | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Total operating lease income | $ 104,200,000 | 159,700,000 | $ 152,600,000 | ||||||||
Parts Subsegment | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Sales returns liabilities in estimated returns | $ 142,000,000 | $ 126,300,000 | $ 142,000,000 | $ 126,300,000 | |||||||
Maximum | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Warranty period | 5 years | ||||||||||
Lease and guarantee periods (in years) | 5 years | ||||||||||
Estimated useful lives of equipment | 10 years | ||||||||||
Maximum | Financial Services | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Operating lease term | 5 years | 5 years | |||||||||
Maximum | Financial Services | Loans and Leases | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Contractual terms of retails loans and finance leases | 5 years | ||||||||||
Maximum | Trucks | Financial Services | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Finance leases, lease term | 5 years | ||||||||||
Minimum | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Warranty period | 1 year | ||||||||||
Lease and guarantee periods (in years) | 3 years | ||||||||||
Estimated useful lives of equipment | 3 years | ||||||||||
Minimum | Financial Services | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Operating lease term | 3 years | 3 years | |||||||||
Minimum | Financial Services | Loans and Leases | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Contractual terms of retails loans and finance leases | 3 years | ||||||||||
Minimum | Trucks | Financial Services | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Finance leases, lease term | 3 years |
Summary of Cumulative Effect of
Summary of Cumulative Effect of the Changes Made for the Adoption of ASU 2016-13 (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings | $ 11,005.2 | $ 10,398.5 | |
Financial Services | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Finance and other receivables, net | 11,820.7 | $ 12,079.8 | 12,086 |
Other assets | 681.7 | 715.1 | 715 |
Deferred taxes and other liabilities | $ 854.6 | 788.7 | 790.2 |
Retained earnings | 10,393.9 | $ 10,398.5 | |
Financial Services | ASU 2016-13 | Adjustments | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Finance and other receivables, net | (6.2) | ||
Other assets | 0.1 | ||
Deferred taxes and other liabilities | (1.5) | ||
Retained earnings | $ (4.6) |
Schedule of Revenues by Major S
Schedule of Revenues by Major Sources (Detail) - Truck, Parts and Other - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||
Total sales and revenues | $ 5,136 | $ 4,538.4 | $ 2,701.9 | $ 4,778 | $ 5,710.9 | $ 6,004.2 | $ 6,266.5 | $ 6,138.1 | $ 17,154.3 | $ 24,119.7 |
Trucks | ||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||
Total sales and revenues | 13,164.8 | 19,989.5 | ||||||||
Trucks | Truck Sales | ||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||
Total sales and revenues | 12,466.9 | 19,225.2 | ||||||||
Trucks | Revenues from extended warranties, operating leases and other | ||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||
Total sales and revenues | 697.9 | 764.3 | ||||||||
Parts Subsegment | ||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||
Total sales and revenues | 3,912.9 | 4,024.9 | ||||||||
Parts Subsegment | Parts | ||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||
Total sales and revenues | 3,803.3 | 3,912.1 | ||||||||
Parts Subsegment | Revenues from dealer services and other | ||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||
Total sales and revenues | 109.6 | 112.8 | ||||||||
Winch Sales and Other | ||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||||||||
Total sales and revenues | $ 76.6 | $ 105.3 |
Summary of Financial Services L
Summary of Financial Services Lease Revenues by Lease Type (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||
Finance lease revenues | $ 189.2 | $ 199.7 |
Operating lease revenues | 802.3 | 798.2 |
Total lease revenues | $ 991.5 | $ 997.9 |
Marketable Debt Securities (Det
Marketable Debt Securities (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 1,409.7 | $ 1,154 |
Unrealized Gains | 19.4 | 8.6 |
Unrealized Losses | 0.1 | 0.5 |
Fair Value | 1,429 | 1,162.1 |
U.S. tax-exempt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 388.1 | 318.1 |
Unrealized Gains | 4.4 | 2.2 |
Unrealized Losses | 0.1 | 0.1 |
Fair Value | 392.4 | 320.2 |
U.S. corporate securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 229.6 | 163.8 |
Unrealized Gains | 3.3 | 1.9 |
Fair Value | 232.9 | 165.7 |
U.S. government and agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 92.1 | 128.4 |
Unrealized Gains | 2.3 | 0.9 |
Fair Value | 94.4 | 129.3 |
Non-U.S. corporate securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 406 | 347.7 |
Unrealized Gains | 5.5 | 2.3 |
Unrealized Losses | 0.2 | |
Fair Value | 411.5 | 349.8 |
Non-U.S. government securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 77 | 72.3 |
Unrealized Gains | 0.5 | 0.2 |
Unrealized Losses | 0.1 | |
Fair Value | 77.5 | 72.4 |
Other debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 216.9 | 123.7 |
Unrealized Gains | 3.4 | 1.1 |
Unrealized Losses | 0.1 | |
Fair Value | $ 220.3 | $ 124.7 |
Investments in Marketable Deb_3
Investments in Marketable Debt Securities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Allowance for credit losses | $ 0 | $ 0 | |
VRDOs | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Marketable debt securities | 0 | 49,700,000 | |
Truck, Parts and Other | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Gross realized gains from sales of marketable debt securities | 2,700,000 | 1,300,000 | $ 1,100,000 |
Gross realized loss from sales of marketable debt securities | 300,000 | 400,000 | $ 800,000 |
Allowance for credit losses | 0 | 0 | |
Marketable debt securities | $ 1,429,000,000 | $ 1,162,100,000 |
Marketable Debt Securities Cont
Marketable Debt Securities Continuous Unrealized Losses (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months Fair Value | $ 81.1 | $ 177 |
Less than 12 Months Unrealized Losses | 0.1 | 0.4 |
12 Months or Greater Fair value | $ 1.3 | 31.4 |
12 Months or Greater Unrealized losses | $ 0.1 |
Contractual Maturities of Marke
Contractual Maturities of Marketable Debt Securities (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost Maturities: | ||
Within one year | $ 313.9 | |
One to five years | 1,088.6 | |
Six to ten years | 5.2 | |
More than ten years | 2 | |
Amortized Cost | 1,409.7 | $ 1,154 |
Fair Value Maturities: | ||
Within one year | 315.7 | |
One to five years | 1,106.1 | |
Six to ten years | 5.2 | |
More than ten years | 2 | |
Fair Value | $ 1,429 | $ 1,162.1 |
Inventories (Detail)
Inventories (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Finished products | $ 610 | $ 584.6 |
Work in process and raw materials | 801.9 | 754.9 |
Inventories, gross | 1,411.9 | 1,339.5 |
Less LIFO reserve | (190) | (186.3) |
Inventories, net | $ 1,221.9 | $ 1,153.2 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Truck, Parts and Other | ||
Inventory [Line Items] | ||
Percentage of inventories valued using LIFO method of accounting | 42.00% | 46.00% |
Finance and Other Receivables_2
Finance and Other Receivables (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financial Services | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans | $ 5,839.1 | $ 5,241.7 | |||||
Finance leases | 3,944.7 | 3,906.7 | |||||
Dealer wholesale financing | 2,012.4 | 2,907.4 | |||||
Operating lease receivables and other | 151.5 | 142.6 | |||||
Finance and other receivables, net of deferred income | 11,947.7 | 12,198.4 | |||||
Less allowance for losses | (127) | [1] | (112.4) | $ (113.8) | $ (117.2) | ||
Finance and other receivables, net | 11,820.7 | $ 12,079.8 | 12,086 | ||||
Loans and Leases | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for losses | (120.4) | (104.4) | |||||
Dealer | Wholesale | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for losses | (3.4) | (4.3) | |||||
Dealer | Wholesale | Financial Services | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for losses | (3.4) | (4.3) | (6.8) | (6) | |||
Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for losses | (3.2) | (3.7) | |||||
Other | Financial Services | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for losses | [2] | $ (3.2) | $ (3.7) | $ (3.2) | $ (9.3) | ||
[1] | The beginning balance has been adjusted for the adoption of ASU 2016-13. | ||||||
[2] | Operating lease and other trade receivables. |
Finance and Other Receivables -
Finance and Other Receivables - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest receivable | $ 35.6 | $ 29.5 | |
Loans accounted for as troubled debt restructurings | 63.1 | 14.1 | |
TDRs subsequently defaulted, amount | 4.1 | ||
TDRs charged-off during the period | 2 | ||
Repossessed inventory | 19.3 | 25.6 | |
Proceeds from the sales of repossessed assets | $ 85.6 | $ 62.4 | $ 75.8 |
Financial Services | Financing Receivable | Maximum | Credit Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of portfolio assets | 5.00% | ||
Financial Services | Dealer | Wholesale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable repayment period | 1 year |
Annual Minimum Payments Due on
Annual Minimum Payments Due on Loans (Detail) - Financial Services - Loans Receivable $ in Millions | Dec. 31, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2021 | $ 1,758.4 |
2022 | 1,480.1 |
2023 | 1,223.6 |
2024 | 881.8 |
2025 | 380 |
Thereafter | 115.2 |
Loans Receivables | $ 5,839.1 |
Annual Minimum Payments Due o_2
Annual Minimum Payments Due on Finance Lease Receivables and a Reconciliation of the Undiscounted Cash Flows to the Net Investment in Finance Leases (Detail) - Finance Leases Financing Receivable - Finance Leases $ in Millions | Dec. 31, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2021 | $ 1,310.4 |
2022 | 1,030.5 |
2023 | 775 |
2024 | 458.8 |
2025 | 223.4 |
Thereafter | 82.5 |
Financing lease receivable | 3,880.6 |
Unguaranteed residual values | 458.8 |
Unearned interest on finance leases | (394.7) |
Finance leases | $ 3,944.7 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Provision for losses | $ 28.8 | $ 15.4 | $ 16.5 | ||
Dealer | Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 4.3 | ||||
Ending Balance | 3.4 | 4.3 | |||
Other | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 3.7 | ||||
Ending Balance | 3.2 | 3.7 | |||
Financial Services | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 112.4 | 113.8 | 117.2 | ||
Provision for losses | 28.8 | [1] | 15.4 | 16.5 | |
Charge-offs | (28) | [1] | (28.4) | (27.5) | |
Recoveries | 5.7 | [1] | 11 | 10.3 | |
Currency translation and other | 1.9 | [1] | 0.6 | (2.7) | |
Ending Balance | 127 | [1] | 112.4 | 113.8 | |
Financial Services | ASU 2016-13 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | [1] | 118.6 | |||
Ending Balance | [1] | 118.6 | |||
Financial Services | Dealer | Wholesale | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 4.3 | 6.8 | 6 | ||
Provision for losses | (1) | (1.6) | 1 | ||
Charge-offs | (0.6) | ||||
Currency translation and other | 0.1 | (0.3) | (0.2) | ||
Ending Balance | 3.4 | 4.3 | 6.8 | ||
Financial Services | Dealer | Wholesale | ASU 2016-13 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 4.3 | ||||
Ending Balance | 4.3 | ||||
Financial Services | Dealer | Retail | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 9.2 | 10 | 9.4 | ||
Provision for losses | (0.8) | (1) | 0.7 | ||
Currency translation and other | 0.2 | (0.1) | |||
Ending Balance | 8.4 | 9.2 | 10 | ||
Financial Services | Dealer | Retail | ASU 2016-13 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 9.2 | ||||
Ending Balance | 9.2 | ||||
Financial Services | Customer Retail | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 95.2 | 93.8 | 92.5 | ||
Provision for losses | 30.1 | 14.2 | 13.6 | ||
Charge-offs | (26.6) | (24.2) | (20) | ||
Recoveries | 5.3 | 10.7 | 9.9 | ||
Currency translation and other | 1.8 | 0.7 | (2.2) | ||
Ending Balance | 112 | 95.2 | 93.8 | ||
Financial Services | Customer Retail | ASU 2016-13 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 101.4 | ||||
Ending Balance | 101.4 | ||||
Financial Services | Other | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | [2] | 3.7 | 3.2 | 9.3 | |
Provision for losses | [2] | 0.5 | 3.8 | 1.2 | |
Charge-offs | [2] | (1.4) | (3.6) | (7.5) | |
Recoveries | [2] | 0.4 | 0.3 | 0.4 | |
Currency translation and other | [2] | (0.2) | |||
Ending Balance | [2] | 3.2 | 3.7 | $ 3.2 | |
Financial Services | Other | ASU 2016-13 | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | [2] | $ 3.7 | |||
Ending Balance | [2] | $ 3.7 | |||
[1] | The beginning balance has been adjusted for the adoption of ASU 2016-13. | ||||
[2] | 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, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Amortized cost basis for impaired finance receivables evaluated individually | $ 87.9 | $ 49.9 |
Allowance for impaired finance receivables determined individually | 5.6 | 6.5 |
Amortized cost basis for finance receivables evaluated collectively | 11,708.3 | 12,005.9 |
Allowance for finance receivables determined collectively | 118.2 | 102.2 |
Dealer | Wholesale | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Amortized cost basis for finance receivables evaluated collectively | 2,012.4 | 2,907.4 |
Allowance for finance receivables determined collectively | 3.4 | 4.3 |
Dealer | Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Amortized cost basis for impaired finance receivables evaluated individually | 1.2 | 2.3 |
Amortized cost basis for finance receivables evaluated collectively | 1,701.9 | 1,643.3 |
Allowance for finance receivables determined collectively | 8.4 | 9.2 |
Customer Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Amortized cost basis for impaired finance receivables evaluated individually | 86.7 | 47.6 |
Allowance for impaired finance receivables determined individually | 5.6 | 6.5 |
Amortized cost basis for finance receivables evaluated collectively | 7,994 | 7,455.2 |
Allowance for finance receivables determined collectively | $ 106.4 | $ 88.7 |
Amortized Cost Basis for Financ
Amortized Cost Basis for Finance Receivables that are on Non-accrual Status (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized cost basis for finance receivables that are on non-accrual status | $ 87.9 | $ 49.7 |
Dealer | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized cost basis for finance receivables that are on non-accrual status | 1.2 | 2.3 |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized cost basis for finance receivables that are on non-accrual status | 78.6 | 40.2 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Amortized cost basis for finance receivables that are on non-accrual status | $ 8.1 | $ 7.2 |
Summary of Impaired Loans (Deta
Summary of Impaired Loans (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | $ 24.7 | $ 14 |
Associated allowance | (1.9) | (2.7) |
Net carrying amount of impaired loans with specific reserve | 22.8 | 11.3 |
Impaired loans with no specific reserve | 1.2 | 9.4 |
Net carrying amount of impaired loans | 24 | 20.7 |
Average amortized cost basis | 30.9 | 27.3 |
Dealer | Wholesale | ||
Financing Receivable, Impaired [Line Items] | ||
Average amortized cost basis | 4.9 | |
Dealer | Retail | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no specific reserve | 1.2 | 2.3 |
Net carrying amount of impaired loans | 1.2 | 2.3 |
Average amortized cost basis | 1.6 | 2.4 |
Customer Retail | Fleet | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 22.6 | 10.9 |
Associated allowance | (1.6) | (2.1) |
Net carrying amount of impaired loans with specific reserve | 21 | 8.8 |
Impaired loans with no specific reserve | 6.7 | |
Net carrying amount of impaired loans | 21 | 15.5 |
Average amortized cost basis | 26.5 | 16.6 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a specific reserve | 2.1 | 3.1 |
Associated allowance | (0.3) | (0.6) |
Net carrying amount of impaired loans with specific reserve | 1.8 | 2.5 |
Impaired loans with no specific reserve | 0.4 | |
Net carrying amount of impaired loans | 1.8 | 2.9 |
Average amortized cost basis | $ 2.8 | $ 3.4 |
Interest Income Recognized on C
Interest Income Recognized on Cash Basis (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income recognized: | |||
Interest income recognized on a cash basis | $ 1.9 | $ 1.7 | $ 2.2 |
Dealer | Retail | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | 0.2 | 0.2 | |
Customer Retail | Fleet | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | 1.5 | 1.3 | 2 |
Customer Retail | Owner/Operator | |||
Interest income recognized: | |||
Interest income recognized on a cash basis | $ 0.2 | $ 0.2 | $ 0.2 |
Amortized Cost Basis of Finance
Amortized Cost Basis of Finance Receivables by Credit Quality Indicator and Portfolio Class (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, Loans | $ 2,033.1 | |
Financed Receivables, By Origination Year, 2020 | 3,752.9 | |
Financed Receivables, By Origination Year, 2019 | 2,843 | |
Financed Receivables, By Origination Year, 2018 | 1,736.5 | |
Financed Receivables, By Origination Year, 2017 | 840.4 | |
Financed Receivables, By Origination Year, 2016 | 381.5 | |
Financed Receivables, By Origination Year, Prior | 208.8 | |
Finance Receivables, Total | 11,796.2 | $ 12,055.8 |
Dealer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, Loans | 2,033.1 | |
Financed Receivables, By Origination Year, 2020 | 509.4 | |
Financed Receivables, By Origination Year, 2019 | 485.4 | |
Financed Receivables, By Origination Year, 2018 | 272.5 | |
Financed Receivables, By Origination Year, 2017 | 181.5 | |
Financed Receivables, By Origination Year, 2016 | 101.6 | |
Financed Receivables, By Origination Year, Prior | 132 | |
Finance Receivables, Total | 3,715.5 | |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, Loans | 2,012.4 | |
Finance Receivables, Total | 2,012.4 | 2,907.4 |
Dealer | Wholesale | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, Loans | 2,004.5 | |
Finance Receivables, Total | 2,004.5 | |
Dealer | Wholesale | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, Loans | 7.9 | |
Finance Receivables, Total | 7.9 | |
Dealer | Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, Loans | 20.7 | |
Financed Receivables, By Origination Year, 2020 | 509.4 | |
Financed Receivables, By Origination Year, 2019 | 485.4 | |
Financed Receivables, By Origination Year, 2018 | 272.5 | |
Financed Receivables, By Origination Year, 2017 | 181.5 | |
Financed Receivables, By Origination Year, 2016 | 101.6 | |
Financed Receivables, By Origination Year, Prior | 132 | |
Finance Receivables, Total | 1,703.1 | 1,645.6 |
Dealer | Retail | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, Loans | 20.7 | |
Financed Receivables, By Origination Year, 2020 | 504.2 | |
Financed Receivables, By Origination Year, 2019 | 474.9 | |
Financed Receivables, By Origination Year, 2018 | 268 | |
Financed Receivables, By Origination Year, 2017 | 180.1 | |
Financed Receivables, By Origination Year, 2016 | 100.4 | |
Financed Receivables, By Origination Year, Prior | 132 | |
Finance Receivables, Total | 1,680.3 | |
Dealer | Retail | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 5.2 | |
Financed Receivables, By Origination Year, 2019 | 10.5 | |
Financed Receivables, By Origination Year, 2018 | 4.5 | |
Financed Receivables, By Origination Year, 2017 | 1.4 | |
Finance Receivables, Total | 21.6 | |
Dealer | Retail | At-risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2016 | 1.2 | |
Finance Receivables, Total | 1.2 | |
Customer Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 3,243.5 | |
Financed Receivables, By Origination Year, 2019 | 2,357.6 | |
Financed Receivables, By Origination Year, 2018 | 1,464 | |
Financed Receivables, By Origination Year, 2017 | 658.9 | |
Financed Receivables, By Origination Year, 2016 | 279.9 | |
Financed Receivables, By Origination Year, Prior | 76.8 | |
Finance Receivables, Total | 8,080.7 | |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 2,686.4 | |
Financed Receivables, By Origination Year, 2019 | 1,976.4 | |
Financed Receivables, By Origination Year, 2018 | 1,233.7 | |
Financed Receivables, By Origination Year, 2017 | 551.8 | |
Financed Receivables, By Origination Year, 2016 | 238.1 | |
Financed Receivables, By Origination Year, Prior | 67.2 | |
Finance Receivables, Total | 6,753.6 | 6,347.7 |
Customer Retail | Fleet | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 2,664.9 | |
Financed Receivables, By Origination Year, 2019 | 1,921.6 | |
Financed Receivables, By Origination Year, 2018 | 1,203.7 | |
Financed Receivables, By Origination Year, 2017 | 533.7 | |
Financed Receivables, By Origination Year, 2016 | 234.2 | |
Financed Receivables, By Origination Year, Prior | 65.2 | |
Finance Receivables, Total | 6,623.3 | |
Customer Retail | Fleet | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 13.5 | |
Financed Receivables, By Origination Year, 2019 | 17.8 | |
Financed Receivables, By Origination Year, 2018 | 11.8 | |
Financed Receivables, By Origination Year, 2017 | 5.9 | |
Financed Receivables, By Origination Year, 2016 | 1.5 | |
Financed Receivables, By Origination Year, Prior | 1.2 | |
Finance Receivables, Total | 51.7 | |
Customer Retail | Fleet | At-risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 8 | |
Financed Receivables, By Origination Year, 2019 | 37 | |
Financed Receivables, By Origination Year, 2018 | 18.2 | |
Financed Receivables, By Origination Year, 2017 | 12.2 | |
Financed Receivables, By Origination Year, 2016 | 2.4 | |
Financed Receivables, By Origination Year, Prior | 0.8 | |
Finance Receivables, Total | 78.6 | |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 557.1 | |
Financed Receivables, By Origination Year, 2019 | 381.2 | |
Financed Receivables, By Origination Year, 2018 | 230.3 | |
Financed Receivables, By Origination Year, 2017 | 107.1 | |
Financed Receivables, By Origination Year, 2016 | 41.8 | |
Financed Receivables, By Origination Year, Prior | 9.6 | |
Finance Receivables, Total | 1,327.1 | $ 1,155.1 |
Customer Retail | Owner/Operator | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 554.6 | |
Financed Receivables, By Origination Year, 2019 | 376.4 | |
Financed Receivables, By Origination Year, 2018 | 225.1 | |
Financed Receivables, By Origination Year, 2017 | 105.2 | |
Financed Receivables, By Origination Year, 2016 | 41.2 | |
Financed Receivables, By Origination Year, Prior | 9.1 | |
Finance Receivables, Total | 1,311.6 | |
Customer Retail | Owner/Operator | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 1.6 | |
Financed Receivables, By Origination Year, 2019 | 2.7 | |
Financed Receivables, By Origination Year, 2018 | 2 | |
Financed Receivables, By Origination Year, 2017 | 0.7 | |
Financed Receivables, By Origination Year, 2016 | 0.2 | |
Financed Receivables, By Origination Year, Prior | 0.2 | |
Finance Receivables, Total | 7.4 | |
Customer Retail | Owner/Operator | At-risk | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financed Receivables, By Origination Year, 2020 | 0.9 | |
Financed Receivables, By Origination Year, 2019 | 2.1 | |
Financed Receivables, By Origination Year, 2018 | 3.2 | |
Financed Receivables, By Origination Year, 2017 | 1.2 | |
Financed Receivables, By Origination Year, 2016 | 0.4 | |
Financed Receivables, By Origination Year, Prior | 0.3 | |
Finance Receivables, Total | $ 8.1 |
Financing Receivables by Aging
Financing Receivables by Aging Category (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | $ 11,748.5 | $ 11,990.8 |
Finance Receivables, Total | 11,796.2 | 12,055.8 |
31 - 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 18.8 | 31.7 |
Greater than 60 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 28.9 | 33.3 |
Dealer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Total | 3,715.5 | |
Dealer | Wholesale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 2,012.4 | 2,907.4 |
Finance Receivables, Total | 2,012.4 | 2,907.4 |
Dealer | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 1,703.1 | 1,645.6 |
Finance Receivables, Total | 1,703.1 | 1,645.6 |
Customer Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Finance Receivables, Total | 8,080.7 | |
Customer Retail | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 6,718.3 | 6,297.1 |
Finance Receivables, Total | 6,753.6 | 6,347.7 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, current and up to 30 days past due | 1,314.7 | 1,140.7 |
Finance Receivables, Total | 1,327.1 | 1,155.1 |
Customer Retail | 31 - 60 days past due | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 12.3 | 23 |
Customer Retail | 31 - 60 days past due | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 6.5 | 8.7 |
Customer Retail | Greater than 60 days past due | Fleet | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 23 | 27.6 |
Customer Retail | Greater than 60 days past due | Owner/Operator | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | $ 5.9 | $ 5.7 |
Pre- and Post-Modification Amor
Pre- and Post-Modification Amortized Cost Basis Balances for Finance Receivables Modified by Portfolio Class (Detail) - Financial Services - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification, Amortized Cost Basis | $ 74.7 | $ 2.5 |
Post-Modification, Amortized Cost Basis | 74.7 | 2.5 |
Customer Retail | Fleet | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification, Amortized Cost Basis | 72.5 | 2.2 |
Post-Modification, Amortized Cost Basis | 72.5 | 2.2 |
Customer Retail | Owner/Operator | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification, Amortized Cost Basis | 2.2 | 0.3 |
Post-Modification, Amortized Cost Basis | $ 2.2 | $ 0.3 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property Subject to or Available for Operating Lease [Line Items] | |||
Total | $ 3,584.7 | $ 3,648.1 | $ 3,641.6 |
Truck, Parts and Other | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Equipment on operating leases | 576.8 | 706.3 | |
Less allowance for depreciation | (154.9) | (160.8) | |
Total | 421.9 | 545.5 | |
Financial Services | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Equipment on operating leases | 4,493.9 | 4,350 | |
Less allowance for depreciation | (1,331.1) | (1,247.4) | |
Total | $ 3,162.8 | $ 3,102.6 |
Equipment on Operating Leases -
Equipment on Operating Leases - Additional Information (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Property Subject to or Available for Operating Lease [Line Items] | |
Minimum lease payments receivable for operating leases, in 2021 | $ 13.7 |
Minimum lease payments receivable for operating leases, in 2022 | 10.6 |
Minimum lease payments receivable for operating leases, in 2023 | 5.8 |
Minimum lease payments receivable for operating leases, in 2024 | 3.2 |
Minimum lease payments receivable for operating leases, in 2025 | 2.4 |
Minimum lease payments receivable for operating leases, thereafter | 6 |
Financial Services | |
Property Subject to or Available for Operating Lease [Line Items] | |
Minimum lease payments receivable for operating leases, in 2021 | 668.2 |
Minimum lease payments receivable for operating leases, in 2022 | 451.8 |
Minimum lease payments receivable for operating leases, in 2023 | 252.8 |
Minimum lease payments receivable for operating leases, in 2024 | 104.3 |
Minimum lease payments receivable for operating leases, in 2025 | 35 |
Minimum lease payments receivable for operating leases, thereafter | 5.1 |
Truck, Parts and Other | |
Property Subject to or Available for Operating Lease [Line Items] | |
Annual amortization of deferred lease revenues, in 2021 | 53.6 |
Annual amortization of deferred lease revenues, in 2022 | 24.6 |
Annual amortization of deferred lease revenues, in 2023 | 12.1 |
Annual amortization of deferred lease revenues, in 2024 | 8.5 |
Annual amortization of deferred lease revenues, in 2025 | 0.2 |
Annual amortization of deferred lease revenues, thereafter | 0 |
Annual maturities of the residual value guarantees, in 2021 | 179.8 |
Annual maturities of the residual value guarantees, in 2022 | 82.4 |
Annual maturities of the residual value guarantees, in 2023 | 54.2 |
Annual maturities of the residual value guarantees, in 2024 | 15.9 |
Annual maturities of the residual value guarantees, in 2025 | 15.2 |
Annual maturities of the residual value guarantees, thereafter | $ 10.9 |
Residual Value Obligation and D
Residual Value Obligation and Deferred Lease Revenue (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Residual value guarantees | $ 358.4 | $ 439.6 |
Deferred lease revenues | 99 | 147.7 |
Residual value guarantees and deferred revenues, Total | $ 457.4 | $ 587.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net | $ 3,270.4 | $ 2,883.8 | $ 2,480.9 |
Truck, Parts and Other | |||
Property, Plant and Equipment [Line Items] | |||
Land | 286.4 | 271.8 | |
Buildings and improvements | 1,474.7 | 1,382.2 | |
Machinery, equipment and production tooling | 4,234.4 | 3,998.2 | |
Construction in progress | 1,081.8 | 741.7 | |
Property, Plant and Equipment, Gross, Total | 7,077.3 | 6,393.9 | |
Less allowance for depreciation | (3,806.9) | (3,510.1) | |
Property, plant and equipment, net | $ 3,270.4 | $ 2,883.8 | |
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 Exp_3
Accounts Payable, Accrued Expenses and Other (Detail) - Truck, Parts and Other - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accounts payable | $ 1,176.2 | $ 1,115.7 |
Product support liabilities | 514.6 | 508.1 |
Accrued expenses | 446.5 | 467.4 |
Right-of-return liabilities | 337.3 | 226 |
Accrued capital expenditures | 288.8 | 270.3 |
Salaries and wages | 260.8 | 271.8 |
Other | 389.7 | 334.9 |
Accounts payable, accrued expenses and other | $ 3,413.9 | $ 3,194.2 |
Changes in Product Support Liab
Changes in Product Support Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
WARRANTY RESERVES | |||
Beginning balance | $ 440 | ||
Ending balance | 389.7 | $ 440 | |
Truck, Parts and Other | |||
WARRANTY RESERVES | |||
Beginning balance | 440 | 380.2 | $ 298.8 |
Cost accruals | 295 | 386.3 | 331.9 |
Payments | (437.2) | (343.7) | (271.8) |
Change in estimates for pre-existing warranties | 84.1 | 19.8 | 25.6 |
Currency translation and other | 7.8 | (2.6) | (4.3) |
Ending balance | 389.7 | 440 | 380.2 |
DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS | |||
Beginning balance | 801.4 | 699.9 | 653.9 |
Deferred revenues | 409.9 | 499.1 | 448.2 |
Revenues recognized | (438.9) | (396.4) | (385) |
Currency translation | 23.4 | (1.2) | (17.2) |
Ending balance | $ 795.8 | $ 801.4 | $ 699.9 |
Product Support Liabilities - A
Product Support Liabilities - Additional Information (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Product Warranties Disclosures [Abstract] | |
Deferred revenues on extended warranties and R&M recognize, in 2021 | $ 272.3 |
Deferred revenues on extended warranties and R&M recognize, in 2022 | 251.8 |
Deferred revenues on extended warranties and R&M recognize, in 2023 | 162.3 |
Deferred revenues on extended warranties and R&M recognize, in 2024 | 74.6 |
Deferred revenues on extended warranties and R&M recognize, in 2025 | 25.4 |
Deferred revenues on extended warranties and R&M recognize, thereafter | $ 9.4 |
Product Support Liabilities (De
Product Support Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | $ 389.7 | $ 440 | ||
Deferred Revenues | 795.8 | 801.4 | ||
Truck, Parts and Other | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 389.7 | 440 | $ 380.2 | $ 298.8 |
Truck, Parts and Other | Accounts payable, accrued expenses and other | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 245.6 | 270.6 | ||
Deferred Revenues | 269 | 237.5 | ||
Truck, Parts and Other | Other liabilities | ||||
Product Liability Contingency [Line Items] | ||||
Warranty Reserves | 144.1 | 169.4 | ||
Deferred Revenues | 513.1 | 547.6 | ||
Financial Services | Accounts payable, accrued expenses and other | ||||
Product Liability Contingency [Line Items] | ||||
Deferred Revenues | 5.7 | 6.8 | ||
Financial Services | Deferred Taxes and Other Liabilities | ||||
Product Liability Contingency [Line Items] | ||||
Deferred Revenues | $ 8 | $ 9.5 |
Financial Services Borrowings (
Financial Services Borrowings (Detail) - Financial Services - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Effective Rate | 1.40% | 1.90% |
Commercial paper | $ 3,113.5 | $ 3,797.2 |
Bank loans | 230.9 | 313 |
Commercial paper and bank loans | 3,344.4 | 4,110.2 |
Term notes | 7,508.9 | 7,112.5 |
Commercial Paper, Bank Loans, and Term Debt at Carrying Value, Total | $ 10,853.3 | $ 11,222.7 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Effective Rate | 0.40% | 1.50% |
Bank Loans | ||
Debt Instrument [Line Items] | ||
Effective Rate | 5.90% | 7.10% |
Term Loan | ||
Debt Instrument [Line Items] | ||
Effective Rate | 1.70% | 1.90% |
Borrowings and Credit Arrange_3
Borrowings and Credit Arrangements - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2016MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 19, 2021USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020MXN ($) | |
Debt Disclosure [Line Items] | |||||||
Interest paid on borrowings | $ 164.5 | $ 203.8 | $ 166.5 | ||||
Line of credit, maximum capacity | 3,523.1 | ||||||
Line of credit, unused borrowing capacity | 3,292.2 | ||||||
Syndicated loan facility | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum capacity | 3,000 | ||||||
Line of credit, outstanding amount | 0 | ||||||
Expires in June 2019 | Syndicated loan facility | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum capacity | $ 1,000 | ||||||
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 | ||||||
Line of credit, expiry date | 2023-06 | ||||||
Expires in June 2023 | Syndicated loan facility | |||||||
Debt Disclosure [Line Items] | |||||||
Line of credit, maximum capacity | $ 1,000 | ||||||
Line of credit, expiry date | 2024-06 | ||||||
PACCAR's U.S. finance subsidiary | Medium-term Notes | |||||||
Debt Disclosure [Line Items] | |||||||
Debt outstanding | $ 6,000 | ||||||
Registration expiration | 2021-11 | ||||||
PACCAR's U.S. finance subsidiary | Subsequent Event | Medium-term Notes | |||||||
Debt Disclosure [Line Items] | |||||||
Debt outstanding | $ 400 | ||||||
PACCAR's European finance subsidiary | Medium-term Notes | |||||||
Debt Disclosure [Line Items] | |||||||
Debt, unused borrowing capacity | € | € 1,600,000,000 | ||||||
Debt, borrowing capacity | € | € 2,500,000,000 | ||||||
Debt, renewal period | This program replaced an expiring program in the second quarter of 2020 and is renewable annually through the filing of a new listing. | ||||||
PACCAR's Mexico finance subsidiary | Commercial Paper | |||||||
Debt Disclosure [Line Items] | |||||||
Maximum limit of borrowing capacity | $ 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 | $ 6,842,700,000 | ||||||
PACCAR's Mexico finance subsidiary | Medium-term Notes | Commercial Paper | |||||||
Debt Disclosure [Line Items] | |||||||
Debt, borrowing capacity | $ 10,000,000,000 | ||||||
PACCAR's Australian subsidiary | Medium-term Notes | |||||||
Debt Disclosure [Line Items] | |||||||
Debt outstanding | $ 450 | ||||||
Financial Services | |||||||
Debt Disclosure [Line Items] | |||||||
Commercial paper and term notes borrowings | 10,622.4 | 10,909.7 | |||||
Fair value hedges and unamortized discounts, net | $ (12.7) | $ (20.5) |
Annual Maturities of Financial
Annual Maturities of Financial Services Borrowings (Detail) - Financial Services $ in Millions | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
2021 | $ 5,396 |
2022 | 2,353.5 |
2023 | 2,250.9 |
2024 | 440.5 |
2025 | 425.1 |
Debt, Long-term and Short-term, Combined Amount, Total | 10,866 |
Medium-term Notes | |
Debt Instrument [Line Items] | |
2021 | 2,241.7 |
2022 | 2,231.9 |
2023 | 2,231.9 |
2024 | 415.4 |
2025 | 400 |
Debt, Long-term and Short-term, Combined Amount, Total | 7,520.9 |
Notes Payable to Banks | |
Debt Instrument [Line Items] | |
2021 | 40.1 |
2022 | 121.6 |
2023 | 19 |
2024 | 25.1 |
2025 | 25.1 |
Debt, Long-term and Short-term, Combined Amount, Total | 230.9 |
Commercial Paper | |
Debt Instrument [Line Items] | |
2021 | 3,114.2 |
Debt, Long-term and Short-term, Combined Amount, Total | $ 3,114.2 |
Schedule of Components of Lease
Schedule of Components of Lease Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease cost | ||
Amortization of right-of-use assets | $ 0.9 | $ 0.9 |
Interest on lease liabilities | 0.1 | 0.1 |
Operating lease cost | 16.6 | 16.9 |
Short-term lease cost | 0.8 | 0.7 |
Variable lease cost | 1.7 | 1.8 |
Total lease cost | $ 20.1 | $ 20.4 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Rental expenses | $ 20.1 | $ 20.4 | $ 35.7 |
Schedule of Balance Sheet Infor
Schedule of Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
OPERATING LEASES | ||
Total right-of-use assets | $ 39.9 | $ 36.9 |
Total lease liabilities | 40.3 | 37.7 |
FINANCE LEASES | ||
Total right-of-use assets | 1 | 1.1 |
Total lease liabilities | 1 | 1.2 |
Truck, Parts and Other | ||
OPERATING LEASES | ||
Accounts payable, accrued expenses and other | $ 11.4 | $ 13 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent |
Other liabilities | $ 20.3 | $ 19.5 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
FINANCE LEASES | ||
Accounts payable, accrued expenses and other | $ 0.5 | $ 0.7 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent |
Other liabilities | $ 0.5 | $ 0.5 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Truck, Parts and Other | Other Noncurrent Assets | ||
OPERATING LEASES | ||
Total right-of-use assets | $ 30.9 | $ 31.7 |
FINANCE LEASES | ||
Total right-of-use assets | 1 | 1.1 |
Financial Services | Other Assets | ||
OPERATING LEASES | ||
Total right-of-use assets | 9 | 5.2 |
Financial Services | Accounts Payable, Accrued Expense and Other | ||
OPERATING LEASES | ||
Total lease liabilities | 2 | 1.5 |
Financial Services | Deferred Taxes and Other Liabilities | ||
OPERATING LEASES | ||
Total lease liabilities | $ 6.6 | $ 3.7 |
Schedule of Weighted-Average Re
Schedule of Weighted-Average Remaining Lease Term and Discount Rate (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
OPERATING LEASES | ||
Weighted-average remaining lease term | 5 years 8 months 12 days | 5 years 1 month 6 days |
Weighted-average discount rate | 1.40% | 1.90% |
FINANCE LEASES | ||
Weighted-average remaining lease term | 2 years 3 months 18 days | 2 years 2 months 12 days |
Weighted-average discount rate | 2.50% | 4.00% |
Schedule of Maturities of Lease
Schedule of Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
OPERATING LEASES | ||
2021 | $ 13.7 | |
2022 | 10.6 | |
2023 | 5.8 | |
2024 | 3.2 | |
2025 | 2.4 | |
Thereafter | 6 | |
Total lease payments | 41.7 | |
Less: interest | (1.4) | |
Total lease liabilities | 40.3 | $ 37.7 |
FINANCE LEASES | ||
2021 | 0.6 | |
2022 | 0.2 | |
2023 | 0.2 | |
2024 | 0.1 | |
Total lease payments | 1.1 | |
Less: interest | (0.1) | |
Total lease liabilities | $ 1 | $ 1.2 |
Schedule of Cash Flow Informati
Schedule of Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 17.2 | $ 17 |
Operating cash flows from finance leases | 0.1 | 0.2 |
Financing cash flows from finance leases | 0.9 | 1 |
Right-of-use assets obtained in exchange for lease liabilities | ||
Operating leases | 19.9 | 8.9 |
Finance leases | $ 0.5 | $ 0.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Standby letters of credit and surety bonds | $ 45.5 | ||
Outstanding commitments to fund new loan and lease transactions | $ 823.4 | ||
Funding commitments for loans and leases expiration period | 90 days | ||
Other commitments due in 2021 | $ 127.5 | ||
Other commitments due in 2022 | 76.1 | ||
Other commitments due in 2023 | 3.4 | ||
Other commitments due in 2024 | 0.3 | ||
Other commitments due in 2025 | 0 | ||
Other commitments due in 2025 and beyond | 0 | ||
Environmental activities expenditures | $ 1.9 | $ 1.3 | $ 1.2 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Severance Costs | $ 6.1 | $ 5.8 | $ 0.7 |
Metal and Electrical Engineering Industry Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual coverage ratio percentage | 97.20% | ||
Western Metal Industry Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by the Company | 15.00% | 20.00% | |
MEASURED AT NAV | U.S. Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments | $ 123.4 | ||
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% | 5.00% | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated unrecognized actuarial gains and losses | 10.00% | ||
Contribution to pension plans | $ 184.9 | $ 35.7 | |
Expected pension contributions minimum funding requirements | 19.7 | ||
Annual benefits expected to be paid year one | 125.7 | ||
Annual benefits expected to be paid year two | 109.8 | ||
Annual benefits expected to be paid year three | 114.8 | ||
Annual benefits expected to be paid year four | 121.2 | ||
Annual benefits expected to be paid year five | 127 | ||
Annual benefits expected to be paid for the five years thereafter | 726.4 | ||
Unrecognized actuarial loss amount in accumulated other comprehensive loss expected to be amortized next year | 56.7 | ||
Unrecognized prior service cost amount in accumulated other comprehensive loss expected to be amortized next year | 0.8 | ||
Accumulated benefit obligation for all pension plans of the Company | 3,321.5 | $ 2,806.3 | |
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 | 100 | ||
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 | $ 150 | ||
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 | $ 42.5 | $ 48.3 | $ 45.3 |
Allocation of Plan Assets by In
Allocation of Plan Assets by Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 3,793.4 | $ 3,226.4 | $ 2,699.2 |
Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 86.5 | 101.2 | |
Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 426.2 | 356.6 | |
Fair Value Inputs Level 1 And Level 2 [Member] | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 512.7 | 457.8 | |
MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 3,280.7 | 2,768.6 | |
U.S. Equities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,047 | 860.1 | |
U.S. Equities | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,047 | 860.1 | |
Global Equities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,140.6 | 973.1 | |
Global Equities | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,140.6 | 973.1 | |
Total Equities | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 2,187.6 | $ 1,833.2 | |
Total Equities | Minimum | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target | 50.00% | 50.00% | |
Total Equities | Maximum | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target | 70.00% | 70.00% | |
Total Equities | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 2,187.6 | $ 1,833.2 | |
U.S. Fixed Income | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,099.8 | 962.6 | |
U.S. Fixed Income | Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 83.9 | 90.6 | |
U.S. Fixed Income | Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 296 | 260.3 | |
U.S. Fixed Income | Fair Value Inputs Level 1 And Level 2 [Member] | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 379.9 | 350.9 | |
U.S. Fixed Income | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 719.9 | 611.7 | |
Non-U.S. Fixed Income | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 403.2 | 350.1 | |
Non-U.S. Fixed Income | Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 30.4 | 28.1 | |
Non-U.S. Fixed Income | Fair Value Inputs Level 1 And Level 2 [Member] | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 30.4 | 28.1 | |
Non-U.S. Fixed Income | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 372.8 | 322 | |
Total Fixed Income | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 1,503 | $ 1,312.7 | |
Total Fixed Income | Minimum | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target | 30.00% | 30.00% | |
Total Fixed Income | Maximum | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Equity funds, target | 50.00% | 50.00% | |
Total Fixed Income | Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 83.9 | $ 90.6 | |
Total Fixed Income | Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 326.4 | 288.4 | |
Total Fixed Income | Fair Value Inputs Level 1 And Level 2 [Member] | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 410.3 | 379 | |
Total Fixed Income | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 1,092.7 | 933.7 | |
Cash and Other | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 102.8 | 80.5 | |
Cash and Other | Level 1 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 2.6 | 10.6 | |
Cash and Other | Level 2 | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 99.8 | 68.2 | |
Cash and Other | Fair Value Inputs Level 1 And Level 2 [Member] | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | 102.4 | 78.8 | |
Cash and Other | MEASURED AT NAV | |||
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Plan assets | $ 0.4 | $ 1.7 |
Weighted Average Assumptions Re
Weighted Average Assumptions Relate to All Pension Plans of Company, Except for Certain Multi-Employer and Defined Contribution Plans (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rate | 2.20% | 2.90% |
Rate of increase in future compensation levels | 3.70% | 3.80% |
Assumed long-term rate of return on plan assets | 6.20% | 6.30% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in projected benefit obligation: | |||
Benefit obligation, beginning balance | $ 3,234.4 | $ 2,655.4 | |
Service cost | 130.4 | 102 | $ 108.3 |
Interest cost | 83 | 95.6 | 85.8 |
Benefits paid | (120.2) | (127) | |
Actuarial loss | 379.5 | 478 | |
Currency translation and other | 54.4 | 30 | |
Participant contributions | 0.4 | 0.4 | |
Projected benefit obligation, ending balance | 3,761.9 | 3,234.4 | 2,655.4 |
Change in plan assets: | |||
Fair value of plan assets, beginning balance | 3,226.4 | 2,699.2 | |
Employer contributions | 184.9 | 35.7 | |
Actual return on plan assets | 453.4 | 588.1 | |
Benefits paid | (120.2) | (127) | |
Currency translation and other | 48.5 | 30 | |
Participant contributions | 0.4 | 0.4 | |
Fair value of plan assets, ending balance | 3,793.4 | 3,226.4 | $ 2,699.2 |
Funded status, ending balance | 31.5 | (8) | |
Amounts recorded on Balance Sheet: | |||
Other noncurrent assets | 222.1 | 146.5 | |
Accounts payable, accrued expenses and other | 25.5 | 39.9 | |
Other liabilities | 165.1 | 114.6 | |
Accumulated other comprehensive loss: | |||
Actuarial loss | 571.7 | 512.5 | |
Prior service cost | $ 6.3 | 5.1 | |
Net initial transition amount | $ 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, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 167.9 | $ 170.6 |
Accumulated benefit obligation | 148.7 | 150.1 |
Fair value of plan assets | $ 13.5 | $ 23.4 |
Components of Pension Expense (
Components of Pension Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 130.4 | $ 102 | $ 108.3 |
Interest on projected benefit obligation | 83 | 95.6 | 85.8 |
Expected return on assets | (190.6) | (176.6) | (177.2) |
Amortization of prior service costs | 1.5 | 1.4 | 1.4 |
Recognized actuarial loss | 44.2 | 20.5 | 35.3 |
Settlement loss | 11.6 | ||
Net pension expense | $ 80.1 | $ 42.9 | $ 53.6 |
Multi-employer Plans (Detail)
Multi-employer Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Multiemployer Plans [Line Items] | |||
Entity Tax Identification Number | 91-0351110 | ||
COMPANY CONTRIBUTIONS | $ 37.8 | $ 32.8 | $ 31.8 |
Metal and Electrical Engineering Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
PENSION PLAN NUMBER | 135668 | ||
COMPANY CONTRIBUTIONS | $ 33.9 | 27.8 | 27.9 |
Western Metal Industry Pension Plan | |||
Multiemployer Plans [Line Items] | |||
PENSION PLAN NUMBER | 001 | ||
Entity Tax Identification Number | 91-6033499 | ||
COMPANY CONTRIBUTIONS | $ 3 | 3.8 | 2.7 |
Other Plans | |||
Multiemployer Plans [Line Items] | |||
COMPANY CONTRIBUTIONS | $ 0.9 | $ 1.2 | $ 1.2 |
Components of Income Before Inc
Components of Income Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 1,122.9 | $ 2,201.1 | $ 1,775.2 |
Foreign | 535 | 898.1 | 1,035 |
Income before income taxes | $ 1,657.9 | $ 3,099.2 | $ 2,810.2 |
Components of Provision for Inc
Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current provision: | |||
Federal | $ 182.5 | $ 352.3 | $ 267.1 |
State | 44.9 | 96.8 | 67.5 |
Foreign | 132.6 | 191.4 | 263 |
Current Income Tax Expense (Benefit), Total | 360 | 640.5 | 597.6 |
Deferred (benefit) provision: | |||
Federal | (11.2) | 40.7 | 22.6 |
State | 1.7 | (4.3) | 1.3 |
Foreign | 9 | 34.4 | (6.4) |
Deferred taxes | (0.5) | 70.8 | 17.5 |
Income taxes | $ 359.5 | $ 711.3 | $ 615.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Tax benefits recognized for net operating loss carryforwards | $ 17.8 | $ 12.4 | $ 5 | |
Net operating loss carryforwards | 492.2 | |||
Deferred tax asset related to operating loss carryforwards | 129.2 | |||
Valuation allowance | $ 102.1 | 118.5 | ||
Carryforward description | The carryforward periods range from four years to indefinite, subject to certain limitations under applicable laws. | |||
Cash paid for income taxes | $ 374 | 586 | 607.6 | |
Unrecognized tax benefits | 24.5 | 30.7 | 21.2 | $ 22.9 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 23.2 | 28.4 | 18.9 | |
(Income) expense related to interest | (0.7) | 0.8 | (0.1) | |
Accrued interest expense and penalties | 1.2 | $ 1.9 | $ 1.1 | |
Unrecognized tax benefits resulting from research and development tax credits | $ 5.5 | |||
Internal Revenue Service (IRS) | ||||
Income Taxes [Line Items] | ||||
Tax examinations | the United States Internal Revenue Service has completed examinations of the Company’s tax returns for all years through 2014. | |||
Net Operating Loss Carryforwards | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | $ 95.6 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards periods | 4 years | |||
Foreign | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 416.2 | |||
United States | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 76 | |||
Other Major Jurisdictions | Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Tax year remain subject to examination | 2012 | |||
Other Major Jurisdictions | Latest Tax Year | ||||
Income Taxes [Line Items] | ||||
Tax year remain subject to examination | 2020 |
Reconciliation of Statutory U.S
Reconciliation of Statutory U.S. Federal Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
Transition tax | (0.20%) | ||
State | 2.30% | 2.30% | 2.20% |
Research and development tax credit | (1.40%) | (0.90%) | (0.80%) |
Tax on foreign earnings | 0.80% | 0.90% | 1.00% |
Other, net | (1.00%) | (0.30%) | (1.30%) |
Effective income tax rate | 21.70% | 23.00% | 21.90% |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences Representing Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Accrued expenses | $ 205.3 | $ 203.5 |
Net operating loss and tax credit carryforwards | 140.1 | 132 |
Postretirement benefit plans | 0 | 4.9 |
Allowance for losses on receivables | 36 | 31.4 |
Goodwill and intangibles | 10 | 18.7 |
Other | 122.9 | 103.3 |
Deferred Tax Assets, Gross, Total | 514.3 | 493.8 |
Valuation allowance | (102.1) | (118.5) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 412.2 | 375.3 |
Liabilities: | ||
Financial Services leasing depreciation | (765.1) | (777.5) |
Depreciation and amortization | (168) | (159.4) |
Postretirement benefit plans | (3) | 0 |
Other | (46.1) | (28.9) |
Deferred Tax Liability, Total | (982.2) | (965.8) |
Net deferred tax liability | $ (570) | $ (590.5) |
Balance Sheet Classifications o
Balance Sheet Classifications of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Liabilities | $ (570) | $ (590.5) |
Truck, Parts and Other | Other Noncurrent Assets | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Assets Net | 90.4 | 115.4 |
Truck, Parts and Other | Other liabilities | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Liabilities | (3.5) | (5.3) |
Financial Services | Other Assets | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Assets Net | 46.8 | 36.8 |
Financial Services | Deferred Taxes and Other Liabilities | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred Tax Liabilities | $ (703.7) | $ (737.4) |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | $ 30.7 | $ 21.2 | $ 22.9 |
Additions for tax positions related to the current year | 5.5 | 6.5 | 11.2 |
Additions for tax positions related to prior years | 0.3 | 3 | |
Reductions for tax positions related to prior years | (4.2) | ||
Reductions related to settlements | (5.7) | ||
Lapse of statute of limitations | (7.8) | (7.2) | |
Balance at the end of the year | $ 24.5 | $ 30.7 | $ 21.2 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 9,706.1 | $ 8,592.9 | |
Reclassified out of AOCI | 106.3 | 56.3 | $ (62.6) |
Net other comprehensive income (loss) | 49.8 | (1.6) | (271.7) |
Ending balance | 10,390 | 9,706.1 | 8,592.9 |
Derivative Contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (15.3) | 2 | 1.2 |
Recorded into AOCI | (78.4) | (57) | 90.9 |
Reclassified out of AOCI | 64.5 | 39.7 | (90.5) |
Net other comprehensive income (loss) | (13.9) | (17.3) | 0.4 |
Reclassifications to retained earnings in accordance with ASU 2018-02 | 0.4 | ||
Ending balance | (29.2) | (15.3) | 2 |
Marketable Debt Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 6.1 | (2.3) | (1.8) |
Recorded into AOCI | 10.3 | 8.7 | 0.1 |
Reclassified out of AOCI | (1.8) | (0.3) | (0.1) |
Net other comprehensive income (loss) | 8.5 | 8.4 | |
Reclassifications to retained earnings in accordance with ASU 2018-02 | (0.5) | ||
Ending balance | 14.6 | 6.1 | (2.3) |
Pension Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (517.7) | (477.8) | (375.6) |
Recorded into AOCI | (104) | (56.8) | (86.8) |
Reclassified out of AOCI | 43.6 | 16.9 | 28 |
Net other comprehensive income (loss) | (60.4) | (39.9) | (58.8) |
Reclassifications to retained earnings in accordance with ASU 2018-02 | (43.4) | ||
Ending balance | (578.1) | (517.7) | (477.8) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (573.2) | (620.4) | (417.4) |
Recorded into AOCI | 115.6 | 47.2 | (213.3) |
Net other comprehensive income (loss) | 115.6 | 47.2 | (213.3) |
Reclassifications to retained earnings in accordance with ASU 2018-02 | 10.3 | ||
Ending balance | (457.6) | (573.2) | (620.4) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,100.1) | (1,098.5) | (793.6) |
Recorded into AOCI | (56.5) | (57.9) | (209.1) |
Reclassified out of AOCI | 106.3 | 56.3 | (62.6) |
Net other comprehensive income (loss) | 49.8 | (1.6) | (271.7) |
Reclassifications to retained earnings in accordance with ASU 2018-02 | (33.2) | ||
Ending balance | $ (1,050.3) | $ (1,100.1) | $ (1,098.5) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income before income taxes | $ (1,657.9) | $ (3,099.2) | $ (2,810.2) | ||||||||
Investment income | 35.9 | 82.3 | 60.9 | ||||||||
Tax (benefit) expense | 359.5 | 711.3 | 615.1 | ||||||||
Net Income (Loss) | $ (405.8) | $ (385.5) | $ (147.7) | $ (359.4) | $ (531.3) | $ (607.9) | $ (619.7) | $ (629) | (1,298.4) | (2,387.9) | (2,195.1) |
Total reclassifications out of AOCI | 106.3 | 56.3 | (62.6) | ||||||||
Derivative Contracts | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total reclassifications out of AOCI | 64.5 | 39.7 | (90.5) | ||||||||
Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income before income taxes | 87.6 | 51.7 | (121.5) | ||||||||
Tax (benefit) expense | (23.1) | (12) | 31 | ||||||||
Net Income (Loss) | 64.5 | 39.7 | (90.5) | ||||||||
Marketable Debt Securities | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total reclassifications out of AOCI | (1.8) | (0.3) | (0.1) | ||||||||
Marketable Debt Securities | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Investment income | (2.4) | (0.4) | (0.2) | ||||||||
Tax (benefit) expense | 0.6 | 0.1 | 0.1 | ||||||||
Net Income (Loss) | (1.8) | (0.3) | (0.1) | ||||||||
Pension Plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total reclassifications out of AOCI | 43.6 | 16.9 | 28 | ||||||||
Truck, Parts and Other | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net sales and revenues | (5,136) | (4,538.4) | (2,701.9) | (4,778) | (5,710.9) | (6,004.2) | (6,266.5) | (6,138.1) | (17,154.3) | (24,119.7) | |
Cost of sales and revenues | 4,487 | 3,958.3 | 2,441.5 | 4,189.6 | 4,890 | 5,106.8 | 5,341.7 | 5,217.1 | |||
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 | (4) | 21.2 | 5.4 | ||||||||
Cost of sales and revenues | 1.7 | (4.1) | (6.6) | ||||||||
Interest and other (income), net | (4.6) | 2.1 | (1.6) | ||||||||
Truck, Parts and Other | Actuarial loss | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Interest and other (income), net | 44.2 | 20.5 | 35.3 | ||||||||
Truck, Parts and Other | Prior service costs | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Interest and other (income), net | 1.5 | 1.4 | 1.4 | ||||||||
Truck, Parts and Other | Settlement loss | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Interest and other (income), net | 11.6 | ||||||||||
Truck, Parts and Other | Pension Plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Income before income taxes | 57.3 | 21.9 | 36.7 | ||||||||
Tax (benefit) expense | (13.7) | (5) | (8.7) | ||||||||
Net Income (Loss) | 43.6 | 16.9 | 28 | ||||||||
Financial Services | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Interest and other borrowing expenses | $ 43.6 | $ 45.2 | $ 46.9 | $ 56.4 | $ 57.5 | $ 59.6 | $ 60 | $ 53.4 | |||
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 | $ 94.5 | $ 32.5 | $ (118.7) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
TREASURY STOCK, AT COST: | |||
Equity Class of Treasury Stock [Line Items] | |||
Treasury stock, shares retired | 700,000 | 1,700,000 | 5,800,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Remaining cumulative basis adjustments on discontinued hedge relationship | $ (0.4) | $ (1.5) | |
Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Maximum length of future cash flow hedges | 7 years 6 months | ||
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 | $ 15 | ||
Reclassification from AOCI | |||
Net Investment Hedging | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount outstanding | 344.8 | ||
Pre-tax loss recognized in OCI | 20.4 | ||
Interest-Rate Contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount of outstanding contracts | 3,280.5 | ||
Notional maturities for interest-rate contracts 2021 | 1,241.1 | ||
Notional maturities for interest-rate contracts 2022 | 950 | ||
Notional maturities for interest-rate contracts 2023 | 761.8 | ||
Notional maturities for interest-rate contracts 2024 | 169.6 | ||
Notional maturities for interest-rate contracts 2025 | 58.9 | ||
Notional maturities for interest-rate contracts thereafter | 99.1 | ||
Foreign-exchange contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative notional amount outstanding | $ 1,128.8 | ||
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, 2020 | Dec. 31, 2019 |
ASSETS | ||
Derivative assets | $ 20.5 | $ 56.3 |
Pro forma net amount | 6.4 | 47.3 |
LIABILITIES | ||
Derivative liabilities | 159.9 | 44.3 |
Pro forma net amount | 145.8 | 35.3 |
Interest-Rate Contracts | Financial Services | ||
ASSETS | ||
Less amounts not offset in financial instruments | (12) | (8.6) |
LIABILITIES | ||
Less amounts not offset in financial instruments | (12) | (8.6) |
Foreign-exchange contracts | Truck, Parts and Other | ||
ASSETS | ||
Less amounts not offset in financial instruments | (2.1) | (0.4) |
LIABILITIES | ||
Less amounts not offset in financial instruments | (2.1) | (0.4) |
Designated under hedge accounting | ||
ASSETS | ||
Derivative assets | 19.1 | 55.9 |
LIABILITIES | ||
Derivative liabilities | 153.2 | 40.2 |
Designated under hedge accounting | Interest-Rate Contracts | Other Assets | ||
ASSETS | ||
Derivative assets | 20.5 | |
Designated under hedge accounting | Interest-Rate Contracts | Financial Services | Other Assets | ||
ASSETS | ||
Derivative assets | 16.4 | 45.8 |
Designated under hedge accounting | Interest-Rate Contracts | Financial Services | Deferred Taxes and Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 116.1 | 31 |
Designated under hedge accounting | Foreign-exchange contracts | Financial Services | Deferred Taxes and Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 1.2 | 0 |
Designated under hedge accounting | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ||
ASSETS | ||
Derivative assets | 2.7 | 10.1 |
Designated under hedge accounting | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other | ||
LIABILITIES | ||
Derivative liabilities | 35.9 | 9.2 |
Not designated as hedging instruments | ||
ASSETS | ||
Derivative assets | 1.4 | 0.4 |
LIABILITIES | ||
Derivative liabilities | 6.7 | 4.1 |
Not designated as hedging instruments | Foreign-exchange contracts | Financial Services | Other Assets | ||
ASSETS | ||
Derivative assets | 0.3 | 0 |
Not designated as hedging instruments | Foreign-exchange contracts | Financial Services | Deferred Taxes and Other Liabilities | ||
LIABILITIES | ||
Derivative liabilities | 3.4 | 2.3 |
Not designated as hedging instruments | Foreign-exchange contracts | Truck, Parts and Other | Other current assets | ||
ASSETS | ||
Derivative assets | 1.1 | 0.4 |
Not designated as hedging instruments | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other | ||
LIABILITIES | ||
Derivative liabilities | $ 3.3 | $ 1.8 |
Amount of (Gain) Loss from Deri
Amount of (Gain) Loss from Derivative Financial Instruments Reclassified from AOCI into Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Truck, Parts and Other | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivatives designated as hedging instruments (gain) loss | $ (12.5) | $ 14.6 | $ (2.8) |
Financial Services | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivatives designated as hedging instruments (gain) loss | 95.6 | 34 | (116.9) |
Fair Value Hedging | Financial Services | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivatives designated as hedging instruments (gain) loss | 1.1 | 1.5 | 1.8 |
Cash Flow Hedging | Truck, Parts and Other | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivatives designated as hedging instruments (gain) loss | (6.9) | 19.2 | (2.8) |
Cash Flow Hedging | Financial Services | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivatives designated as hedging instruments (gain) loss | 94.5 | 32.5 | $ (118.7) |
Net Investment Hedging | Truck, Parts and Other | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivatives designated as hedging instruments (gain) loss | $ (5.6) | $ (4.6) |
Amounts Related to Cumulative B
Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Carrying amount of hedged liabilities | $ 90.9 | $ 90.5 |
Cumulative basis adjustment included in the carrying amount | $ (0.9) | $ (0.5) |
Pre-Tax Effects of (Loss) Gain
Pre-Tax Effects of (Loss) Gain Derivative Instruments Recognized in OCI (Detail) - Derivative Contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest-Rate Contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | $ (107.3) | $ (44.4) | $ 117.1 |
Foreign-exchange contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | 2 | (31.7) | 4.5 |
Truck, Parts and Other | Foreign-exchange contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | 2.8 | (31.7) | 4.5 |
Financial Services | Interest-Rate Contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | (107.3) | $ (44.4) | $ 117.1 |
Financial Services | Foreign-exchange contracts | |||
Derivative [Line Items] | |||
(Loss) gain recognized in OCI | $ (0.8) |
Loss (Gain) Recognized in Earni
Loss (Gain) Recognized in Earnings to Derivatives not Designated as Hedging Instruments (Detail) - Foreign-exchange contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
(Gain) loss recognized in earnings | $ 13.2 | $ (4.1) | $ (6.6) |
Truck, Parts and Other | Cost of sales and revenues | |||
Derivative [Line Items] | |||
(Gain) loss recognized in earnings | 0.7 | 0.5 | (0.3) |
Truck, Parts and Other | Interest and other (income), net | |||
Derivative [Line Items] | |||
(Gain) loss recognized in earnings | 2.3 | 5.4 | 6.9 |
Financial Services | Interest and other borrowing expenses | |||
Derivative [Line Items] | |||
(Gain) loss recognized in earnings | 9.4 | (10.1) | (14.9) |
Financial Services | Selling, general and administrative | |||
Derivative [Line Items] | |||
(Gain) loss recognized in earnings | $ 0.8 | $ 0.1 | $ 1.7 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 31, 2020USD ($) |
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, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 20.5 | $ 56.3 |
Derivative liabilities | 159.9 | 44.3 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 1,429 | 1,162.1 |
Derivative assets | 20.5 | 56.3 |
Derivative liabilities | 159.9 | 44.3 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 86.5 | 128.4 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 1,342.5 | 1,033.7 |
Derivative assets | 20.5 | 56.3 |
Derivative liabilities | 159.9 | 44.3 |
Fair Value, Measurements, Recurring | Cross currency swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 14.8 | 43.8 |
Derivative liabilities | 77.6 | 13.5 |
Fair Value, Measurements, Recurring | Cross currency swaps | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 14.8 | 43.8 |
Derivative liabilities | 77.6 | 13.5 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 1.6 | 2 |
Derivative liabilities | 38.5 | 17.5 |
Fair Value, Measurements, Recurring | Interest-rate swaps | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 1.6 | 2 |
Derivative liabilities | 38.5 | 17.5 |
Fair Value, Measurements, Recurring | Foreign-exchange contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 4.1 | 10.5 |
Derivative liabilities | 43.8 | 13.3 |
Fair Value, Measurements, Recurring | Foreign-exchange contracts | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative assets | 4.1 | 10.5 |
Derivative liabilities | 43.8 | 13.3 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 392.4 | 320.2 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 392.4 | 320.2 |
U.S. corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 232.9 | 165.7 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 232.9 | 165.7 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 94.4 | 129.3 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 86.5 | 128.4 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 7.9 | 0.9 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 411.5 | 349.8 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 411.5 | 349.8 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 77.5 | 72.4 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 77.5 | 72.4 |
Other debt securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable debt securities (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | 220.3 | 124.7 |
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 (amortized cost: 2020 - $1,409.7, 2019 - $1,154.0; allowance for credit losses: none) | $ 220.3 | $ 124.7 |
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, 2020 | Dec. 31, 2019 |
Assets, carrying amount | ||
Fixed-rate loans | $ 5,319.2 | $ 4,914.4 |
Liabilities, carrying amount | ||
Fixed-rate debt | 6,482 | 5,925.9 |
Assets, Fair Value | ||
Fixed-rate loans | 5,429.5 | 4,992.2 |
Liabilities, Fair Value | ||
Fixed-rate debt | $ 6,648.6 | $ 5,990.7 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of option granted | $ 6.4 | $ 7.3 | $ 6.3 |
Fair value of option vested | 5 | $ 5.8 | $ 5.3 |
Unrecognized compensation cost related to unvested stock | $ 5.4 | ||
Recognized over a remaining weighted-average vesting period (year) | 1 year 5 months 15 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 | $ 2 | ||
Recognized over a remaining weighted-average vesting period (year) | 1 year 3 months 3 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 | 11,800,000 |
Assumptions Used in Determining
Assumptions Used in Determining Fair Value of Option Awards (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 1.54% | 2.55% | 2.64% |
Expected volatility | 23.00% | 23.00% | 23.00% |
Expected dividend yield | 4.10% | 4.90% | 3.80% |
Expected term | 6 years | 6 years | 6 years |
Weighted average grant date fair value of options per share | $ 10.02 | $ 8.26 | $ 10.67 |
Summary of Activity Under Stock
Summary of Activity Under Stock Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic value of options exercised | $ 26.9 | $ 31.9 | $ 13.4 |
Cash received from stock option exercises | 53.8 | 60.9 | 19.7 |
Tax benefit related to stock award exercises | 3.8 | 3.8 | 2.4 |
Stock-based compensation | 13 | 15.1 | 13.2 |
Tax benefit related to stock-based compensation | $ 1.6 | $ 1.9 | $ 1.9 |
Summary of Options (Detail)
Summary of Options (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)$ / sharesshares | ||
NUMBER OF SHARES | ||
Options outstanding, beginning balance | shares | 3,488,300 | |
Granted | shares | 641,700 | |
Exercised | shares | (949,900) | |
Cancelled | shares | (63,600) | |
Options outstanding, ending balance | shares | 3,116,500 | |
Vested and expected to vest, end of period | shares | 3,014,300 | |
Exercisable, end of period | shares | 1,323,200 | |
PER SHARE EXERCISE PRICE | ||
Options outstanding, beginning balance | $ / shares | $ 60.18 | [1] |
Granted | $ / shares | 76.18 | [1] |
Exercised | $ / shares | 56.68 | [1] |
Cancelled | $ / shares | 69.75 | [1] |
Options outstanding, ending balance | $ / shares | 64.34 | [1] |
Vested and expected to vest, end of period | $ / shares | 64.06 | [1] |
Exercisable, end of period | $ / shares | $ 56.63 | [1] |
REMAINING CONTRACTUAL LIFE IN YEARS | ||
Options outstanding, ending balance | 6 years 5 months 23 days | [1] |
Vested and expected to vest, end of period | 6 years 4 months 24 days | [1] |
Exercisable, end of period | 4 years 1 month 24 days | [1] |
AGGREGATE INTRINSIC VALUE | ||
Options outstanding, ending balance | $ | $ 68.4 | |
Vested and expected to vest, end of period | $ | 67 | |
Exercisable, end of period | $ | $ 39.2 | |
[1] | Weighted Average |
Summary of Nonvested Restricted
Summary of Nonvested Restricted Shares Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended | |
Dec. 31, 2020$ / sharesshares | ||
GRANT DATE FAIR VALUE | ||
Nonvested awards outstanding, beginning balance | $ / shares | $ 65.92 | [1] |
Granted | $ / shares | 76.78 | [1] |
Vested | $ / shares | 69.46 | [1] |
Forfeited | $ / shares | 71.47 | [1] |
Nonvested awards outstanding, ending balance | $ / shares | $ 70.49 | [1] |
NONVESTED NUMBER OF SHARES | ||
Nonvested awards outstanding, beginning balance | shares | 150,500 | |
Granted | shares | 94,400 | |
Vested | shares | (96,700) | |
Forfeited | shares | (5,800) | |
Nonvested awards outstanding, ending balance | shares | 142,400 | |
[1] | Weighted Average |
Dilutive and Antidilutive Optio
Dilutive and Antidilutive Options (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Additional shares | 607,800 | 621,300 | 785,100 |
Antidilutive options | 686,100 | 1,489,400 | 1,176,600 |
Segment and Related Informati_3
Segment and Related Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Reportable segments | Segment | 3 | ||
Investment income (expense) | $ 35.9 | $ 82.3 | $ 60.9 |
Other Segments | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Investment income (expense) | $ 1.4 | $ 0.3 | $ (0.3) |
Geographical Area Data Recorded
Geographical Area Data Recorded to Consolidated (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales and revenues | $ 18,728.5 | $ 25,599.7 | $ 23,495.7 |
Property, plant and equipment, net | 3,270.4 | 2,883.8 | 2,480.9 |
Equipment on operating leases, net | 3,584.7 | 3,648.1 | 3,641.6 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 10,526.6 | 15,119.3 | 13,165.7 |
Property, plant and equipment, net | 1,633 | 1,556.4 | 1,353.8 |
Equipment on operating leases, net | 1,219 | 1,390.1 | 1,405.1 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 4,871.2 | 6,104.7 | 6,071.9 |
Other Countries | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,330.7 | 4,375.7 | 4,258.1 |
Property, plant and equipment, net | 542.2 | 531.9 | 491.9 |
Equipment on operating leases, net | 571.7 | 531 | 614.4 |
Belgium | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 596.2 | 395.7 | 237.4 |
The Netherlands | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 499 | 399.8 | 397.8 |
Poland | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 359.4 | 343.5 | 327.8 |
France | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 349.7 | 315 | 246.8 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 346.4 | 358.3 | 361 |
Spain | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 310.8 | 276.1 | 249.8 |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | 302.3 | 320.5 | 306.4 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Equipment on operating leases, net | $ 125.4 | $ 113.6 | $ 130.3 |
Segment Reporting Information b
Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 18,728.5 | $ 25,599.7 | $ 23,495.7 |
Income (loss) before income taxes | 1,657.9 | 3,099.2 | 2,810.2 |
Investment income | 35.9 | 82.3 | 60.9 |
Depreciation and amortization | 1,049 | 1,077.3 | 1,054.1 |
Expenditures for long-lived assets | 1,657.5 | 2,140.7 | 1,931.8 |
Assets | 28,260 | 28,361.1 | 25,482.4 |
Truck, Parts and Other | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 17,154.3 | 24,119.7 | 22,138.6 |
Income (loss) before income taxes | 1,398.9 | 2,718 | 2,443.4 |
Depreciation and amortization | 323.8 | 412.4 | 433.8 |
Expenditures for long-lived assets | 610.8 | 762.1 | 846.7 |
Assets | 12,460.2 | 12,289.7 | 11,082.8 |
Cash and marketable securities | 4,834 | 5,169.4 | 4,299.6 |
Truck, Parts and Other | Trucks | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 13,164.8 | 19,989.5 | 18,187 |
Income (loss) before income taxes | 581.4 | 1,904.9 | 1,672.1 |
Depreciation and amortization | 292.2 | 381.9 | 406.2 |
Expenditures for long-lived assets | 556 | 664.9 | 778.5 |
Assets | 5,971.9 | 5,609 | 5,347.3 |
Truck, Parts and Other | Trucks | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 13,643 | 20,403.5 | 18,863.1 |
Truck, Parts and Other | Trucks | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | (478.2) | (414) | (676.1) |
Truck, Parts and Other | Parts Subsegment | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,912.9 | 4,024.9 | 3,838.9 |
Income (loss) before income taxes | 799.3 | 830.8 | 768.6 |
Depreciation and amortization | 10.8 | 10.2 | 9.2 |
Expenditures for long-lived assets | 18.4 | 46.2 | 29.4 |
Assets | 1,255.6 | 1,172.1 | 1,090.9 |
Truck, Parts and Other | Parts Subsegment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 3,962.7 | 4,073.1 | 3,896.2 |
Truck, Parts and Other | Parts Subsegment | Intersegment | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | (49.8) | (48.2) | (57.3) |
Truck, Parts and Other | Other | |||
Segment Reporting Information [Line Items] | |||
Net sales and revenues | 76.6 | 105.3 | 112.7 |
Income (loss) before income taxes | 18.2 | (17.7) | 2.7 |
Depreciation and amortization | 20.8 | 20.3 | 18.4 |
Expenditures for long-lived assets | 36.4 | 51 | 38.8 |
Assets | 398.7 | 339.2 | 345 |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,574.2 | 1,480 | 1,357.1 |
Income (loss) before income taxes | 223.1 | 298.9 | 305.9 |
Depreciation and amortization | 725.2 | 664.9 | 620.3 |
Expenditures for long-lived assets | 1,046.7 | 1,378.6 | 1,085.1 |
Assets | $ 15,799.8 | $ 16,071.4 | $ 14,399.6 |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information [Line Items] | |||||||||||
Revenues | $ 18,728.5 | $ 25,599.7 | $ 23,495.7 | ||||||||
Net income | $ 405.8 | $ 385.5 | $ 147.7 | $ 359.4 | $ 531.3 | $ 607.9 | $ 619.7 | $ 629 | $ 1,298.4 | $ 2,387.9 | $ 2,195.1 |
Net Income Per Share | |||||||||||
Basic | $ 1.17 | $ 1.11 | $ 0.43 | $ 1.04 | $ 1.53 | $ 1.75 | $ 1.79 | $ 1.81 | $ 3.74 | $ 6.88 | $ 6.25 |
Diluted | $ 1.17 | $ 1.11 | $ 0.43 | $ 1.03 | $ 1.53 | $ 1.75 | $ 1.78 | $ 1.81 | $ 3.74 | $ 6.87 | $ 6.24 |
Truck, Parts and Other | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Net sales and revenues | $ 5,136 | $ 4,538.4 | $ 2,701.9 | $ 4,778 | $ 5,710.9 | $ 6,004.2 | $ 6,266.5 | $ 6,138.1 | $ 17,154.3 | $ 24,119.7 | |
Cost of sales and revenues | 4,487 | 3,958.3 | 2,441.5 | 4,189.6 | 4,890 | 5,106.8 | 5,341.7 | 5,217.1 | |||
Research and development | 71.7 | 64.7 | 66.5 | 71 | 83.6 | 82.2 | 82.5 | 78.3 | |||
Financial Services | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Revenues | 432.6 | 397.6 | 360.3 | 383.7 | 406.3 | 362.8 | 361.4 | 349.5 | |||
Interest and other borrowing expenses | 43.6 | 45.2 | 46.9 | 56.4 | 57.5 | 59.6 | 60 | 53.4 | |||
Depreciation and other expenses | $ 292 | $ 262.5 | $ 224.1 | $ 229.4 | $ 241.9 | $ 195.3 | $ 183.6 | $ 177.4 |