Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

Components of Comprehensive Income, Net of Related Tax

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

Changes in Accumulated Other Comprehensive Income by Component

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 Accumulated Other Comprehensive Income

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