Stockholders' Equity

3 Months Ended

Mar. 31, 2014

Stockholders' Equity

NOTE F – Stockholders’ Equity

Comprehensive Income

The components of comprehensive income were as follows:

Three Months Ended March 31,	2014			2013
Net income	$	273.9		$	236.1
Other comprehensive income (loss) (OCI):
Unrealized gains on derivative contracts		1.7			3.2
Tax effect		(.6	)		(1.1	)
		1.1			2.1
Unrealized gains (losses) on marketable debt securities		1.2			(.3	)
Tax effect		(.2	)		.1
		1.0			(.2	)
Pension plans		6.4			21.3
Tax effect		(2.1	)		(6.7	)
		4.3			14.6
Foreign currency translation losses		(1.1	)		(96.0	)
Net other comprehensive income (loss)		5.3			(79.5	)
Comprehensive income	$	279.2		$	156.6

Accumulated Other Comprehensive Income

The components of AOCI as of March 31, 2014 and December 31, 2013 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following:

	Unrealized Gains and (Losses) on Derivative Contracts			Unrealized Gains on Marketable Debt Securities		Pension Plans			Foreign Currency Translation			Total
Balance at December 31, 2013	$	(15.1	)	$	1.7	$	(262.2	)	$	284.3		$	8.7
Recorded into AOCI		6.1			.7		.6			(1.1	)		6.3
Reclassified out of AOCI		(5.0	)		.3		3.7						(1.0	)
Net other comprehensive income (loss)		1.1			1.0		4.3			(1.1	)		5.3
Balance at March 31, 2014	$	(14.0	)	$	2.7	$	(257.9	)	$	283.2		$	14.0

	Unrealized Gains and (Losses) on Derivative Contracts			Unrealized Gains and (Losses) on Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at December 31, 2012	$	(27.2	)	$	6.6		$	(496.5	)	$	357.6		$	(159.5	)
Recorded into AOCI		14.9			(.2	)		7.3			(96.0	)		(74.0	)
Reclassified out of AOCI		(12.8	)					7.3						(5.5	)
Net other comprehensive income (loss)		2.1			(.2	)		14.6			(96.0	)		(79.5	)
Balance at March 31, 2013	$	(25.1	)	$	6.4		$	(481.9	)	$	261.6		$	(239.0	)

Reclassifications out of AOCI during the three months ended March 31, 2014 are as follows:

AOCI Components	Line Item in the Consolidated Statement of Comprehensive Income	Amount Reclassified Out of AOCI
Unrealized gains and losses on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Cost of sales and revenues	$	.1
	Interest and other expense, net		(.1	)
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		(6.9	)
	Pre-tax expense reduction		(6.9	)
	Tax expense		1.9
	After-tax expense reduction		(5.0	)
Unrealized gains and losses on marketable debt securities:
Marketable debt securities	Investment income		.4
	Tax expense		(.1	)
	After-tax income increase		.3
Pension plans:
Truck, Parts and Other
Prior service costs	Cost of sales and revenues $.2, SG&A $.1		.3
Actuarial loss	Cost of sales and revenues $2.7, SG&A $2.2		4.9
Financial Services
Actuarial loss	SG&A		.3
	Pre-tax expense increase		5.5
	Tax benefit		(1.8	)
	After-tax expense increase		3.7
Total reclassifications out of AOCI		$	(1.0	)

Reclassifications out of AOCI during the three months ended March 31, 2013 are as follows:

AOCI Components	Line Item in the Consolidated Statement of Comprehensive Income	Amount Reclassified Out of AOCI
Unrealized gains and losses on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Cost of sales and revenues	$	(2.3	)
	Interest and other expense, net		(.2	)
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		(15.6	)
	Pre-tax expense reduction		(18.1	)
	Tax expense		5.3
	After-tax expense reduction		(12.8	)
Pension plans:
Truck, Parts and Other
Prior service costs	Cost of sales and revenues		.3
Actuarial loss	Cost of sales and revenues $5.7, SG&A $4.8		10.5
Financial Services
Actuarial loss	SG&A		.4
	Pre-tax expense increase		11.2
	Tax benefit		(3.9	)
	After-tax expense increase		7.3
Total reclassifications out of AOCI		$	(5.5	)

Stock Compensation Plans

Stock-based compensation expense was $7.5 and $5.8 for the three months ended March 31, 2014 and 2013, respectively. Realized tax benefits related to the excess of deductible amounts over expense recognized amounted to $1.3 and $.7 for the three months ended March 31, 2014 and 2013, respectively, and have been classified as a financing cash flow.

During the first quarter of 2014, the Company issued 406,457 common shares under deferred and stock compensation arrangements.