NOTE F –
Stockholders’ Equity
Comprehensive
Income
The components of
comprehensive income were as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30,
2013 |
|
|
September 30,
2013 |
|
Net
income
|
|
$ |
309.4 |
|
|
$ |
837.1 |
|
Other comprehensive
income (loss) (OCI):
|
|
|
|
|
|
|
|
|
Unrealized (losses)
gains on derivative contracts
|
|
|
(3.5 |
) |
|
|
9.8 |
|
Tax
effect
|
|
|
.8 |
|
|
|
(3.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(2.7 |
) |
|
|
6.5 |
|
|
|
|
|
|
|
|
|
|
Unrealized gains
(losses) on marketable debt securities
|
|
|
.1 |
|
|
|
(5.7 |
) |
Tax
effect
|
|
|
|
|
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
.1 |
|
|
|
(4.1 |
) |
|
|
|
|
|
|
|
|
|
Employee benefit
plans
|
|
|
2.5 |
|
|
|
36.8 |
|
Tax
effect
|
|
|
(1.5 |
) |
|
|
(12.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
1.0 |
|
|
|
24.2 |
|
|
|
|
|
|
|
|
|
|
Currency translation
gains (losses)
|
|
|
120.4 |
|
|
|
(58.2 |
) |
|
|
|
|
|
|
|
|
|
Net other comprehensive income
(loss)
|
|
|
118.8 |
|
|
|
(31.6 |
) |
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
$ |
428.2 |
|
|
$ |
805.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30,
2012 |
|
|
September 30,
2012 |
|
Net income
|
|
$ |
233.6 |
|
|
$ |
858.1 |
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Unrealized losses on
derivative contracts
|
|
|
(3.3 |
) |
|
|
(9.5 |
) |
Tax effect
|
|
|
.9 |
|
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2.4 |
) |
|
|
(6.9 |
) |
|
|
|
|
|
|
|
|
|
Unrealized gains on
marketable debt securities
|
|
|
1.1 |
|
|
|
3.8 |
|
Tax effect
|
|
|
(.3 |
) |
|
|
(1.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
.8 |
|
|
|
2.7 |
|
|
|
|
|
|
|
|
|
|
Employee benefit
plans
|
|
|
5.0 |
|
|
|
24.1 |
|
Tax effect
|
|
|
(2.0 |
) |
|
|
(8.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
3.0 |
|
|
|
16.0 |
|
|
|
|
|
|
|
|
|
|
Currency translation
gains
|
|
|
73.9 |
|
|
|
46.6 |
|
|
|
|
|
|
|
|
|
|
Net other comprehensive
income
|
|
|
75.3 |
|
|
|
58.4 |
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
$ |
308.9 |
|
|
$ |
916.5 |
|
|
|
|
|
|
|
|
|
|
Accumulated Other
Comprehensive Loss
The components of
accumulated other comprehensive loss (AOCI) as of
September 30, 2013 and December 31, 2012 and the changes
in AOCI, net of tax, included in the Consolidated Balance Sheets,
consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains and
(Losses) on
Derivative
Contracts |
|
|
Unrealized Gains
and (Losses) on
Marketable Debt
Securities |
|
|
Defined
Benefit
Pension
Plans |
|
|
Foreign
Currency
Translation |
|
|
Total |
|
Balance at
December 31, 2012
|
|
$ |
(27.2 |
) |
|
$ |
6.6 |
|
|
$ |
(496.5 |
) |
|
$ |
357.6 |
|
|
$ |
(159.5 |
) |
Amounts recorded in
AOCI
|
|
|
27.3 |
|
|
|
(5.1 |
) |
|
|
2.1 |
|
|
|
(56.2 |
) |
|
|
(31.9 |
) |
Amounts reclassified out
of AOCI
|
|
|
(20.8 |
) |
|
|
1.0 |
|
|
|
22.1 |
|
|
|
(2.0 |
) |
|
|
.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive
income (loss)
|
|
|
6.5 |
|
|
|
(4.1 |
) |
|
|
24.2 |
|
|
|
(58.2 |
) |
|
|
(31.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
September 30, 2013
|
|
$ |
(20.7 |
) |
|
$ |
2.5 |
|
|
$ |
(472.3 |
) |
|
$ |
299.4 |
|
|
$ |
(191.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassifications out of
AOCI during the nine months ended September 30, 2013 are
as follows:
|
|
|
|
|
|
|
AOCI
Components
|
|
Line Item in the Consolidated Statement of Comprehensive Income
|
|
Amount
Reclassified
Out of
AOCI |
|
Gains and losses on cash
flow hedges:
|
|
|
|
|
|
|
Truck, Parts and
Other
|
|
|
|
|
|
|
Foreign-exchange
contracts
|
|
Cost of sales and revenues |
|
$ |
(.5 |
) |
|
|
Interest and other expense (income),
net |
|
|
(.2 |
) |
|
|
|
Financial
Services
|
|
|
|
|
|
|
Interest-rate
contracts
|
|
Interest and other borrowing expenses |
|
|
(29.1 |
) |
|
|
|
|
|
|
|
|
|
Pre-tax expense reduction |
|
|
(29.8 |
) |
|
|
Tax expense |
|
|
9.0 |
|
|
|
|
|
|
|
|
|
|
After-tax expense reduction |
|
|
(20.8 |
) |
|
|
|
|
|
|
|
Unrealized gains and
losses on marketable debt securities:
|
|
|
|
|
Marketable debt
securities
|
|
Investment income |
|
|
1.4 |
|
|
|
Tax expense |
|
|
(.4 |
) |
|
|
|
|
|
|
|
|
|
After-tax income increase |
|
|
1.0 |
|
|
|
|
|
|
|
|
Defined benefit pension
plans:
|
|
|
|
|
|
|
Truck, Parts and
Other
|
|
|
|
|
|
|
Prior service
costs
|
|
Cost of sales and revenues $.8, SG&A
$.1 |
|
|
.9 |
|
Actuarial
loss
|
|
Cost of sales and revenues $17.4, SG&A $14.2,
R&D $.1 |
|
|
31.7 |
|
|
|
|
Financial
Services
|
|
|
|
|
|
|
Actuarial
loss
|
|
SG&A |
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
Pre-tax expense increase |
|
|
33.9 |
|
|
|
Tax benefit |
|
|
(11.8 |
) |
|
|
|
|
|
|
|
|
|
After-tax expense increase |
|
|
22.1 |
|
|
|
|
|
|
|
|
Foreign Currency
Translation:
|
|
|
|
|
|
|
Truck, Parts and
Other
|
|
Interest and other expense (income),
net |
|
|
(1.1 |
) |
Financial
Services
|
|
Interest and other borrowing expenses |
|
|
(.9 |
) |
|
|
|
|
|
|
|
|
|
Expense reduction |
|
|
(2.0 |
) |
|
|
|
|
|
|
|
Total reclassifications
out of AOCI
|
|
|
|
$ |
.3 |
|
|
|
|
|
|
|
|
Stock Compensation
Plans
Stock-based compensation
expense was $2.7 and $11.2 for the three and nine months ended
September 30, 2013, respectively, and $2.6 and $11.0 for
the three and nine months ended September 30, 2012,
respectively. Realized tax benefits related to the excess of
deductible amounts over expense recognized amounted to $1.1 and
$2.7 for the three and nine months ended September 30, 2013,
respectively, and nil and $.8 for the three and nine months ended
September 30, 2012, respectively, and have been classified as
a financing cash flow.
During the first three
quarters of 2013, the Company issued 858,515 common shares under
deferred and stock compensation arrangements.
|