Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,	2020		2019		2018
Domestic	$	1,122.9	$	2,201.1	$	1,775.2
Foreign		535.0		898.1		1,035.0
	$	1,657.9	$	3,099.2	$	2,810.2

Components of Provision for Income Taxes

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

Year Ended December 31,	2020			2019			2018
Current provision:
Federal	$	182.5		$	352.3		$	267.1
State		44.9			96.8			67.5
Foreign		132.6			191.4			263.0
		360.0			640.5			597.6
Deferred (benefit) provision:
Federal		(11.2	)		40.7			22.6
State		1.7			(4.3	)		1.3
Foreign		9.0			34.4			(6.4	)
		(.5	)		70.8			17.5
	$	359.5		$	711.3		$	615.1

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:

	2020			2019			2018
Statutory rate		21.0	%		21.0	%		21.0	%
Effect of:
Transition tax								(.2	)
State		2.3			2.3			2.2
Research and development tax credit		(1.4	)		(.9	)		(.8	)
Tax on foreign earnings		.8			.9			1.0
Other, net		(1.0	)		(.3	)		(1.3	)
		21.7	%		23.0	%		21.9	%

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,	2020			2019
Assets:
Accrued expenses	$	205.3		$	203.5
Net operating loss and tax credit carryforwards		140.1			132.0
Postretirement benefit plans					4.9
Allowance for losses on receivables		36.0			31.4
Goodwill and intangibles		10.0			18.7
Other		122.9			103.3
		514.3			493.8
Valuation allowance		(102.1	)		(118.5	)
		412.2			375.3
Liabilities:
Financial Services leasing depreciation		(765.1	)		(777.5	)
Depreciation and amortization		(168.0	)		(159.4	)
Postretirement benefit plans		(3.0	)
Other		(46.1	)		(28.9	)
		(982.2	)		(965.8	)
Net deferred tax liability	$	(570.0	)	$	(590.5	)

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

At December 31,	2020			2019
Truck, Parts and Other:
Other noncurrent assets, net	$	90.4		$	115.4
Other liabilities		(3.5	)		(5.3	)
Financial Services:
Other assets		46.8			36.8
Deferred taxes and other liabilities		(703.7	)		(737.4	)
Net deferred tax liability	$	(570.0	)	$	(590.5	)

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:

	2020			2019		2018
Balance at January 1	$	30.7		$	21.2	$	22.9
Additions for tax positions related to the current year		5.5			6.5		11.2
Additions for tax positions related to prior years		.3			3.0
Reductions for tax positions related to prior years		(4.2	)
Reductions related to settlements							(5.7	)
Lapse of statute of limitations		(7.8	)				(7.2	)
Balance at December 31	$	24.5		$	30.7	$	21.2