Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Stockholders' Equity

NOTE G - Stockholders’ Equity

Comprehensive Income

The components of comprehensive income are as follow:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2023			2022			2023			2022
Net income	$	1,228.5		$	769.4		$	3,183.5		$	2,090.3
Other comprehensive income (loss) (OCI):
Unrealized gains (losses) on derivative contracts		38.6			24.3			(23.9	)		61.4
Tax effect		(8.8	)		(6.3	)		5.1			(17.2	)
		29.8			18.0			(18.8	)		44.2
Unrealized gains (losses) on marketable debt securities		2.5			(22.7	)		6.2			(67.2	)
Tax effect		(.7	)		5.5			(1.6	)		16.6
		1.8			(17.2	)		4.6			(50.6	)
Pension plans		1.4			20.2			4.7			50.4
Tax effect		(.7	)		(5.1	)		(1.1	)		(12.6	)
		.7			15.1			3.6			37.8
Foreign currency translation (losses) gains		(192.1	)		(297.3	)		26.4			(503.4	)
Net other comprehensive (loss) income		(159.8	)		(281.4	)		15.8			(472.0	)
Comprehensive income	$	1,068.7		$	488.0		$	3,199.3		$	1,618.3

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:

Three Months Ended September 30, 2023	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at July 1, 2023	$	(13.5	)	$	(40.8	)	$	(108.0	)	$	(615.5	)	$	(777.8	)
Recorded into AOCI		57.5			2.2			(.5	)		(192.1	)		(132.9	)
Reclassified out of AOCI		(27.7	)		(.4	)		1.2						(26.9	)
Net other comprehensive income (loss)		29.8			1.8			.7			(192.1	)		(159.8	)
Balance at September 30, 2023	$	16.3		$	(39.0	)	$	(107.3	)	$	(807.6	)	$	(937.6	)

Three Months Ended September 30, 2022	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION  PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at July 1, 2022	$	12.7		$	(34.5	)	$	(247.1	)	$	(842.8	)	$	(1,111.7	)
Recorded into AOCI		56.2			(16.9	)		9.5			(297.3	)		(248.5	)
Reclassified out of AOCI		(38.2	)		(.3	)		5.6						(32.9	)
Net other comprehensive income (loss)		18.0			(17.2	)		15.1			(297.3	)		(281.4	)
Balance at September 30, 2022	$	30.7		$	(51.7	)	$	(232.0	)	$	(1,140.1	)	$	(1,393.1	)

Nine Months Ended September 30, 2023	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2023	$	35.1		$	(43.6	)	$	(110.9	)	$	(834.0	)	$	(953.4	)
Recorded into AOCI		(55.8	)		6.7			.1			26.4			(22.6	)
Reclassified out of AOCI		37.0			(2.1	)		3.5						38.4
Net other comprehensive (loss) income		(18.8	)		4.6			3.6			26.4			15.8
Balance at September 30, 2023	$	16.3		$	(39.0	)	$	(107.3	)	$	(807.6	)	$	(937.6	)

Nine Months Ended September 30, 2022	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2022	$	(13.5	)	$	(1.1	)	$	(269.8	)	$	(636.7	)	$	(921.1	)
Recorded into AOCI		90.7			(50.0	)		20.9			(503.4	)		(441.8	)
Reclassified out of AOCI		(46.5	)		(.6	)		16.9						(30.2	)
Net other comprehensive income (loss)		44.2			(50.6	)		37.8			(503.4	)		(472.0	)
Balance at September 30, 2022	$	30.7		$	(51.7	)	$	(232.0	)	$	(1,140.1	)	$	(1,393.1	)

Reclassifications out of AOCI were as follows:

		Three Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	September 30
AOCI COMPONENTS	COMPREHENSIVE INCOME		2023			2022
Unrealized losses (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	13.2		$	2.0
	Cost of sales and revenues		(9.6	)		(6.2	)
	Interest and other (income) expense, net		(.9	)		3.9
Commodity contracts	Cost of sales and revenues		4.2			7.0
Financial Services
Foreign-exchange contracts	Interest and other borrowing expenses		(1.6	)		(3.0	)
Interest-rate contracts	Interest and other borrowing expenses		(42.1	)		(56.2	)
	Pre-tax expense reduction		(36.8	)		(52.5	)
	Tax expense		9.1			14.3
	After-tax expense increase		(27.7	)		(38.2	)
Unrealized gains on marketable debt securities:
Marketable debt securities	Investment income		(.5	)		(.4	)
	Tax expense		.1			.1
	After-tax income increase		(.4	)		(.3	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Interest and other (income) expense, net		1.2			7.1
Prior service costs	Interest and other (income) expense, net		.3			.2
	Pre-tax expense increase		1.5			7.3
	Tax benefit		(.3	)		(1.7	)
	After-tax expense increase		1.2			5.6
Total reclassifications out of AOCI		$	(26.9	)	$	(32.9	)

		Nine Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	September 30
AOCI COMPONENTS	COMPREHENSIVE INCOME		2023			2022
Unrealized losses (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	25.2		$	17.1
	Cost of sales and revenues		1.8			(3.5	)
	Interest and other (income) expense, net		(.9	)		8.8
Commodity contracts	Cost of sales and revenues		1.8			17.4
Financial Services
Foreign-exchange contracts	Interest and other borrowing expenses		(3.6	)		(7.6	)
Interest-rate contracts	Interest and other borrowing expenses		17.9			(99.3	)
	Pre-tax expense increase (reduction)		42.2			(67.1	)
	Tax (benefit) expense		(5.2	)		20.6
	After-tax expense increase (reduction)		37.0			(46.5	)
Unrealized gains on marketable debt securities:
Marketable debt securities	Investment income		(2.8	)		(.8	)
	Tax expense		.7			.2
	After-tax income increase		(2.1	)		(.6	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Interest and other (income) expense, net		3.6			21.7
Prior service costs	Interest and other (income) expense, net		1.0			.5
	Pre-tax expense increase		4.6			22.2
	Tax benefit		(1.1	)		(5.3	)
	After-tax expense increase		3.5			16.9
Total reclassifications out of AOCI		$	38.4		$	(30.2	)

Stock Compensation Plans

Stock-based compensation expense was $2.5 and $18.4 for the three months and nine months ended September 30, 2023, respectively, and $2.6 and $15.1 for the three and nine months ended September 30, 2022, respectively.

During the first nine months of 2023, the Company issued 1,132,535 common shares under deferred and stock compensation arrangements.

Other Capital Stock Changes

During the first nine months of 2023, the Company acquired no treasury shares under the Company’s common stock repurchase plans. The Company acquired 44,955 shares under the Company’s Long-Term Incentive Plan. Stock repurchases of $390.0 million remain authorized under the current $500.0 million program approved by the PACCAR Board of Directors on December 4, 2018.