Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2014

Components of Comprehensive Income, Net of Related Tax

The components of comprehensive income are as follows:

	Three Months Ended						Six Months Ended
	June 30						June 30
	2014			2013			2014			2013
Net income	$	319.2		$	291.6		$	593.1		$	527.7
Other comprehensive income (OCI):
Unrealized (losses) gains on derivative contracts		(1.3	)		10.1			.4			13.3
Tax effect		.8			(3.0	)		.2			(4.1	)
		(.5	)		7.1			.6			9.2
Unrealized gains (losses) on marketable debt securities		2.5			(5.5	)		3.7			(5.8	)
Tax effect		(.8	)		1.5			(1.0	)		1.6
		1.7			(4.0	)		2.7			(4.2)
Pension plans		1.1			13.0			7.5			34.3
Tax effect		(.5	)		(4.4	)		(2.6	)		(11.1	)
		.6			8.6			4.9			23.2
Foreign currency translation gains (losses)		47.7			(82.6	)		46.6			(178.6	)
Net other comprehensive income (loss)		49.5			(70.9	)		54.8			(150.4	)
Comprehensive income	$	368.7		$	220.7		$	647.9		$	377.3

Changes in Accumulated Other Comprehensive Income by Component

The components of AOCI as of June 30, 2014 and December 31, 2013 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following:

	Derivative Contracts			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		(22.7	)		2.8			(2.6	)		46.6		24.1
Reclassified out of AOCI		23.3			(.1	)		7.5					30.7
Net other comprehensive income		.6			2.7			4.9			46.6		54.8
Balance at June 30, 2014	$	(14.5	)	$	4.4		$	(257.3	)	$	330.9	$	63.5

The components of AOCI as of June 30, 2013 and December 31, 2012 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following:

	Derivative Contracts			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		54.1			(4.2	)		8.5			(176.6	)		(118.2	)
Reclassified out of AOCI		(44.9	)					14.7			(2.0	)		(32.2	)
Net other comprehensive income (loss)		9.2			(4.2	)		23.2			(178.6	)		(150.4	)
Balance at June 30, 2013	$	(18.0	)	$	2.4		$	(473.3	)	$	179.0		$	(309.9	)

Reclassifications Out of Accumulated Other Comprehensive Income

Reclassifications out of AOCI during the six months ended June 30, 2014 are as follows:

AOCI Components	Line Item in the Consolidated Statements 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	$	1.8
	Interest and other (income) expense, net		.1
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		31.6
	Pre-tax expense increase		33.5
	Tax benefit		(10.2)
	After-tax expense increase		23.3
Unrealized gains and losses on marketable debt securities:
Marketable debt securities	Investment income		(.2)
	Tax expense		.1
	After-tax income increase		(.1)
Pension plans:
Truck, Parts and Other
Actuarial loss	Cost of sales and revenues $5.6, SG&A $4.3		9.9
Prior service costs	Cost of sales and revenues $.5, SG&A $.1		.6
Financial Services
Actuarial loss	SG&A		.6
	Pre-tax expense increase		11.1
	Tax benefit		(3.6)
	After-tax expense increase		7.5
Total reclassifications out of AOCI		$	30.7

Reclassifications out of AOCI during the six months ended June 30, 2013 are as follows:

AOCI Components	Line Item in the Consolidated Statements 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 (income) expense, net		.3
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		(61.9)
	Pre-tax expense reduction		(63.9)
	Tax expense		19.0
	After-tax expense reduction		(44.9)
Pension plans:
Truck, Parts and Other
Prior service costs	Cost of sales and revenues		.6
Actuarial loss	Cost of sales and revenues $11.5, SG&A $9.6, R&D $.1		21.2
Financial Services
Actuarial loss	SG&A		.8
	Pre-tax expense increase		22.6
	Tax benefit		(7.9)
	After-tax expense increase		14.7
Foreign currency translation:
Truck, Parts and Other	Interest and other (income) expense, net		(1.1)
Financial Services	Interest and other borrowing expenses		(.9)
	Expense reduction		(2.0)
Total reclassifications out of AOCI		$	(32.2)