Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Income Before Income Taxes

The components of the Company’s income before income taxes include the following:

Year Ended December 31,	2013		2012		2011
Domestic	$	827.0	$	786.6	$	607.0
Foreign		868.0		842.3		899.9
	$	1,695.0	$	1,628.9	$	1,506.9

Components of Provision for Income Taxes

The components of the Company’s provision for income taxes include the following:
Year Ended December 31,	2013		2012		2011
Current provision:
Federal	$	191.4	$	126.2	$	.4
State		20.9		31.5		20.5
Foreign		214.1		207.9		219.6
		426.4		365.6		240.5
Deferred provision:
Federal		68.8		134.4		207.8
State		18.4		9.5		3.4
Foreign		10.1		7.8		12.9
		97.3		151.7		224.1
	$	523.7	$	517.3	$	464.6

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:
	2013			2012			2011
Statutory rate		35.0	%		35.0	%		35.0	%
Effect of:
Tax on foreign earnings		(3.8	)		(3.1	)		(3.3	)
Other, net		(.3	)		(.1	)		(.9	)
		30.9	%		31.8	%		30.8	%

Tax Effects of Temporary Differences representing Deferred Tax Assets and Liabilities

The tax effects of temporary differences representing deferred tax assets and liabilities are as follows:

At December 31,	2013			2012
Assets:
Accrued expenses	$	188.4		$	179.9
Postretirement benefit plans					64.4
Net operating loss carryforwards		78.2			64.2
Allowance for losses on receivables		47.0			50.4
Other		88.4			83.3
		402.0			442.2
Valuation allowance		(43.9	)		(21.2	)
		358.1			421.0
Liabilities:
Financial Services leasing depreciation		(851.8	)		(775.8	)
Depreciation and amortization		(296.1	)		(241.4	)
Postretirement benefit plans		(51.3	)
Other		(5.4	)		(14.1	)
		(1,204.6	)		(1,031.3	)
Net deferred tax liability	$	(846.5	)	$	(610.3	)

Balance Sheet Classification of Deferred Tax Assets and Liabilities

The balance sheet classification of the Company’s deferred tax assets and liabilities are as follows:

At December 31,	2013			2012
Truck, Parts and Other:
Other current assets	$	122.2		$	151.2
Other noncurrent assets, net		33.1			40.9
Accounts payable, accrued expenses and other		(.6	)		(1.7	)
Other liabilities		(218.7	)		(90.7	)
Financial Services:
Other assets		77.2			72.4
Deferred taxes and other liabilities		(859.7	)		(782.4	)
Net deferred tax liability	$	(846.5	)	$	(610.3	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2013			2012			2011
Balance at January 1	$	23.4		$	18.3		$	43.1
Additions for tax positions related to the current year		1.0			1.0			.9
Additions for tax positions related to prior years		.3			9.9			5.6
Reductions for tax positions related to prior years		(.7	)		(5.2	)		(22.9	)
Reductions related to settlements		(9.7	)		(.3	)		(7.7	)
Lapse of statute of limitations		(1.2	)		(.3	)		(.7	)
Balance at December 31	$	13.1		$	23.4		$	18.3