Stockholders' Equity

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stockholders' Equity

NOTE F - Stockholders’ Equity

Comprehensive Income (Loss)

The components of comprehensive income (loss) are as follows:

	Three Months Ended						Six Months Ended
	June 30						June 30
	2016			2015			2016			2015
Net income (loss)	$	481.3		$	447.2		$	(113.3	)	$	825.6
Other comprehensive income (loss) (OCI):
Unrealized gains on derivative contracts		9.5			3.2			2.9			3.0
Tax effect		(2.6	)		(1.0	)		(.5	)		(.6	)
		6.9			2.2			2.4			2.4
Unrealized gains (losses) on marketable debt securities		2.6			(3.0	)		5.8			(2.5	)
Tax effect		(.8	)		.9			(1.8	)		.7
		1.8			(2.1	)		4.0			(1.8	)
Pension plans		15.4			2.0			22.4			23.7
Tax effect		(4.8	)		(1.3	)		(7.2	)		(8.1	)
		10.6			.7			15.2			15.6
Foreign currency translation (losses) gains		(57.2	)		106.9			68.3			(246.0	)
Net other comprehensive (loss) income		(37.9	)		107.7			89.9			(229.8	)
Comprehensive income (loss)	$	443.4		$	554.9		$	(23.4	)	$	595.8

Accumulated Other Comprehensive Income (Loss)

The components of AOCI and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets consisted of the following:

Three Months Ended June 30, 2016	Derivative Contracts			Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at April 1, 2016	$	(10.9	)	$	4.3		$	(385.8	)	$	(496.8	)	$	(889.2	)
Recorded into AOCI		15.7			2.1			5.6			(57.2	)		(33.8	)
Reclassified out of AOCI		(8.8	)		(.3	)		5.0						(4.1	)
Net other comprehensive income (loss)		6.9			1.8			10.6			(57.2	)		(37.9	)
Balance at June 30, 2016	$	(4.0	)	$	6.1		$	(375.2	)	$	(554.0	)	$	(927.1	)
Three Months Ended June 30, 2015	Derivative Contracts			Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at April 1, 2015	$	(13.3	)	$	5.6		$	(418.2	)	$	(491.4	)	$	(917.3	)
Recorded into AOCI		(16.4	)		(1.9	)		(6.3	)		106.9			82.3
Reclassified out of AOCI		18.6			(.2	)		7.0						25.4
Net other comprehensive income (loss)		2.2			(2.1	)		.7			106.9			107.7
Balance at June 30, 2015	$	(11.1	)	$	3.5		$	(417.5	)	$	(384.5	)	$	(809.6	)
Six Months Ended June 30, 2016	Derivative Contracts			Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at January 1, 2016	$	(6.4	)	$	2.1		$	(390.4	)	$	(622.3	)	$	(1,017.0	)
Recorded into AOCI		(26.0	)		4.8			5.7			68.3			52.8
Reclassified out of AOCI		28.4			(.8	)		9.5						37.1
Net other comprehensive income		2.4			4.0			15.2			68.3			89.9
Balance at June 30, 2016	$	(4.0	)	$	6.1		$	(375.2	)	$	(554.0	)	$	(927.1	)
Six Months Ended June 30, 2015	Derivative Contracts			Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at January 1, 2015	$	(13.5	)	$	5.3		$	(433.1	)	$	(138.5	)	$	(579.8	)
Recorded into AOCI		4.9			(1.0	)		1.8			(246.0	)		(240.3	)
Reclassified out of AOCI		(2.5	)		(.8	)		13.8						10.5
Net other comprehensive income (loss)		2.4			(1.8	)		15.6			(246.0	)		(229.8	)
Balance at June 30, 2015	$	(11.1	)	$	3.5		$	(417.5	)	$	(384.5	)	$	(809.6	)

Reclassifications out of AOCI during the three months ended June 30, 2016 and 2015 are as follows:

AOCI Components	Line Item in the Consolidated Statements of Comprehensive Income (Loss)	Three Months Ended June 30
		2016			2015
Unrealized (gains) and losses on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	(1.7	)	$	.3
	Cost of sales and revenues		.6			.2
	Interest and other expense, net		.2			.2
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		(7.6	)		25.4
	Pre-tax expense (reduction) increase		(8.5	)		26.1
	Tax benefit		(.3	)		(7.5	)
	After-tax expense (reduction) increase		(8.8	)		18.6
Unrealized (gains) and losses on marketable debt securities:
Marketable debt securities	Investment income		(.4	)		(.3	)
	Tax expense		.1			.1
	After-tax income increase		(.3	)		(.2	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Cost of sales and revenues		3.5			5.8
	Selling, general and administrative		3.6			4.2
			7.1			10.0
Prior service costs	Cost of sales and revenues		.3			.3
Financial Services
Actuarial loss	Selling, general and administrative		.3			.5
	Pre-tax expense increase		7.7			10.8
	Tax benefit		(2.7	)		(3.8	)
	After-tax expense increase		5.0			7.0
Total reclassifications out of AOCI		$	(4.1)		$	25.4

Reclassifications out of AOCI during the six months ended June 30, 2016 and 2015 are as follows:

AOCI Components	Line Item in the Consolidated Statements of Comprehensive Income (Loss)	Six Months Ended June 30
		2016			2015
Unrealized (gains) and losses on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	(6.5	)	$	.3
	Cost of sales and revenues		.6			3.4
	Interest and other expense, net		1.9			(1.7	)
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		50.3			(7.8	)
	Pre-tax expense increase (reduction)		46.3			(5.8	)
	Tax (benefit) expense		(17.9	)		3.3
	After-tax expense increase (reduction)		28.4			(2.5	)
Unrealized (gains) and losses on marketable debt securities:
Marketable debt securities	Investment income		(1.1	)		(1.1	)
	Tax expense		.3			.3
	After-tax income increase		(.8	)		(.8	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Cost of sales and revenues		6.9			11.2
	Selling, general and administrative		6.5			8.5
			13.4			19.7
Prior service costs	Cost of sales and revenues		.5			.5
	Selling, general and administrative		.1			.1
			.6			.6
Financial Services
Actuarial loss	Selling, general and administrative		.5			.9
	Pre-tax expense increase		14.5			21.2
	Tax benefit		(5.0	)		(7.4	)
	After-tax expense increase		9.5			13.8
Total reclassifications out of AOCI		$	37.1		$	10.5

Stock Compensation Plans

Stock-based compensation expense was $1.9 and $9.1 for the three months and six months ended June 30, 2016, respectively, and $2.3 and $10.1 for the three and six months ended June 30, 2015, respectively. Realized tax benefits related to the excess of deductible amounts over expense recognized amounted to $.1 and $.2 for the three and six months ended June 30, 2016, respectively, and $1.0 and $2.2 for the three and six months ended June 30, 2015, respectively, have been classified as a financing cash flow.

During the first half of 2016, the Company issued 326,205 common shares under deferred and stock compensation arrangements.

Other Capital Stock Changes

The Company purchased nil and 1.1 million of treasury shares during the three and six months ended June 30, 2016, respectively.