Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes

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

Year Ended December 31,	2019		2018		2017
Domestic	$	2,201.1	$	1,775.2	$	1,347.8
Foreign		898.1		1,035.0		825.5
	$	3,099.2	$	2,810.2	$	2,173.3

Components of Provision for Income Taxes

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

Year Ended December 31,	2019			2018			2017
Current provision:
Federal	$	352.3		$	267.1		$	397.7
State		96.8			67.5			63.8
Foreign		191.4			263.0			210.5
		640.5			597.6			672.0
Deferred provision (benefit):
Federal		40.7			22.6			(173.8	)
State		(4.3	)		1.3			2.3
Foreign		34.4			(6.4	)		(2.4	)
		70.8			17.5			(173.9	)
	$	711.3		$	615.1		$	498.1

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:

	2019			2018			2017
Statutory rate		21.0	%		21.0	%		35.0	%
Effect of:
Rate change on deferred taxes								(14.0	)
Transition tax					(.2	)		6.0
State		2.3			2.2			1.8
Federal domestic production deduction								(1.1	)
Tax on foreign earnings		.9			1.0			(4.0	)
Other, net		(1.2	)		(2.1	)		(.8	)
		23.0	%		21.9	%		22.9	%

Tax Effects of Temporary Differences Representing Deferred Tax Assets and Liabilities and Balance Sheet Classification

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

At December 31,	2019			2018
Assets:
Accrued expenses	$	203.5		$	179.4
Net operating loss and tax credit carryforwards		132.0			112.1
Postretirement benefit plans		4.9
Allowance for losses on receivables		31.4			30.7
Goodwill and intangibles		18.7			24.2
Other		103.3			102.0
		493.8			448.4
Valuation allowance		(118.5	)		(118.3	)
		375.3			330.1
Liabilities:
Financial Services leasing depreciation		(777.5	)		(676.4	)
Depreciation and amortization		(159.4	)		(145.2	)
Postretirement benefit plans					(8.0	)
Other		(28.9	)		(32.9	)
		(965.8	)		(862.5	)
Net deferred tax liability	$	(590.5	)	$	(532.4	)

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

At December 31,	2019			2018
Truck, Parts and Other:
Other noncurrent assets, net	$	115.4		$	97.1
Other liabilities		(5.3	)		(2.5	)
Financial Services:
Other assets		36.8			37.7
Deferred taxes and other liabilities		(737.4	)		(664.7	)
Net deferred tax liability	$	(590.5	)	$	(532.4	)

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

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

	2019		2018			2017
Balance at January 1	$	21.2	$	22.9		$	17.3
Additions for tax positions related to the current year		6.5		11.2			5.6
Additions for tax positions related to prior years		3.0
Reductions related to settlements				(5.7	)
Lapse of statute of limitations				(7.2	)
Balance at December 31	$	30.7	$	21.2		$	22.9