10-Q

7

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2022

OR

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from              to             

Commission File No. 001-14817

PACCAR Inc

(Exact name of registrant as specified in its charter)

Delaware	91-0351110
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
777 - 106th Ave. N.E., Bellevue, WA	98004
(Address of principal executive offices)	(Zip Code)

(425) 468-7400

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, $1 par value	PCAR	The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock, $1 par value — 347,767,575 shares as of October 25, 2022

PACCAR Inc – Form 10-Q

INDEX

		Page
PART I.	FINANCIAL INFORMATION:
ITEM 1.	FINANCIAL STATEMENTS:
	Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	3
	Consolidated Balance Sheets – September 30, 2022 and December 31, 2021 (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2022  and 2021 (Unaudited)	6
	Consolidated Statements of Stockholders’ Equity – Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	8
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	34
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	50
ITEM 4.	CONTROLS AND PROCEDURES	50
PART II.	OTHER INFORMATION:
ITEM 1.	LEGAL PROCEEDINGS	51
ITEM 1A.	RISK FACTORS	51
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	51
ITEM 6.	EXHIBITS	52
INDEX TO EXHIBITS		52
SIGNATURE		55

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Consolidated Statements of Comprehensive Income (Unaudited)

(Millions, Except Per Share Amounts)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
TRUCK, PARTS AND OTHER:
Net sales and revenues	$	6,687.0		$	4,737.7		$	19,579.6		$	15,538.8
Cost of sales and revenues		5,689.3			4,176.2			16,785.8			13,525.3
Research and development		82.9			72.5			241.3			237.0
Selling, general and administrative		137.7			134.7			430.6			396.8
Interest and other (income), net		(35.0	)		(11.2	)		(89.4	)		(41.6	)
		5,874.9			4,372.2			17,368.3			14,117.5
Truck, Parts and Other Income Before Income Taxes		812.1			365.5			2,211.3			1,421.3
FINANCIAL SERVICES:
Interest and fees		160.4			131.5			443.6			393.8
Operating lease, rental and other revenues		211.5			277.6			667.0			903.6
Revenues		371.9			409.1			1,110.6			1,297.4
Interest and other borrowing expenses		55.8			35.3			142.0			114.9
Depreciation and other expenses		137.4			219.8			426.3			779.0
Selling, general and administrative		33.3			33.9			100.9			97.3
Provision for losses on receivables		(.8	)					3.8			3.2
		225.7			289.0			673.0			994.4
Financial Services Income Before Income Taxes		146.2			120.1			437.6			303.0
Investment income		21.4			1.6			24.3			11.5
Total Income Before Income Taxes		979.7			487.2			2,673.2			1,735.8
Income taxes		210.3			106.7			582.9			389.0
Net Income	$	769.4		$	380.5		$	2,090.3		$	1,346.8
Net Income Per Share
Basic	$	2.21		$	1.09		$	6.00		$	3.87
Diluted	$	2.21		$	1.09		$	5.99		$	3.87
Weighted Average Number of Common Shares Outstanding
Basic		348.4			347.8			348.4			347.7
Diluted		348.9			348.3			348.9			348.4
Comprehensive Income	$	488.0		$	264.9		$	1,618.3		$	1,251.9

See Notes to Consolidated Financial Statements.

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Consolidated Balance Sheets (Unaudited)

(Millions)

	September 30		December 31
	2022		2021
ASSETS
TRUCK, PARTS AND OTHER:
Current Assets
Cash and cash equivalents	$	3,218.7	$	3,253.6
Trade and other receivables, net (allowance for losses: 2022 - $.5, 2021 - $.6)		2,018.5		1,575.1
Marketable securities		1,544.2		1,559.4
Inventories, net		2,382.1		1,976.0
Other current assets		719.7		732.9
Total Truck, Parts and Other Current Assets		9,883.2		9,097.0
Equipment on operating leases, net		208.6		302.4
Property, plant and equipment, net		3,299.4		3,398.1
Other noncurrent assets, net		1,307.6		1,293.0
Total Truck, Parts and Other Assets		14,698.8		14,090.5
FINANCIAL SERVICES:
Cash and cash equivalents		104.8		174.7
Finance and other receivables, net (allowance for losses: 2022 - $117.9, 2021 - $116.9)		12,549.2		11,920.8
Equipment on operating leases, net		2,545.9		2,886.5
Other assets		724.9		436.9
Total Financial Services Assets		15,924.8		15,418.9
	$	30,623.6	$	29,509.4

See Notes to Consolidated Financial Statements.

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Consolidated Balance Sheets (Unaudited)

(Millions)

	September 30			December 31
	2022			2021
LIABILITIES AND STOCKHOLDERS' EQUITY
TRUCK, PARTS AND OTHER:
Current Liabilities
Accounts payable, accrued expenses and other	$	4,381.8		$	3,930.9
Dividend payable					521.1
Total Truck, Parts and Other Current Liabilities		4,381.8			4,452.0
Residual value guarantees and deferred revenues		227.0			329.1
Other liabilities		1,363.0			1,487.6
Total Truck, Parts and Other Liabilities		5,971.8			6,268.7
FINANCIAL SERVICES:
Accounts payable, accrued expenses and other		792.7			624.5
Commercial paper and bank loans		3,295.6			3,303.0
Term notes		7,082.3			7,128.8
Deferred taxes and other liabilities		587.7			590.4
Total Financial Services Liabilities		11,758.3			11,646.7
STOCKHOLDERS' EQUITY:
Preferred stock, no par value - authorized 1.0 million shares, none issued
Common stock, $1 par value - authorized 1.2 billion shares,    issued 347.8 and 347.3 million shares		347.8			347.3
Additional paid-in capital		180.0			142.0
Treasury stock, at cost - .02 million and nil shares		(2.0	)
Retained earnings		13,760.8			12,025.8
Accumulated other comprehensive loss		(1,393.1	)		(921.1	)
Total Stockholders' Equity		12,893.5			11,594.0
	$	30,623.6		$	29,509.4

See Notes to Consolidated Financial Statements.

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Condensed Consolidated Statements of Cash Flows (Unaudited)

(Millions)

	Nine Months Ended
	September 30
	2022			2021
OPERATING ACTIVITIES:
Net Income	$	2,090.3		$	1,346.8
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization:
Property, plant and equipment		239.7			197.5
Equipment on operating leases and other		345.9			494.8
Provision for losses on financial services receivables		3.8			3.2
Other, net		(187.2	)		(239.9	)
Pension contributions		(34.3	)		(19.2	)
Change in operating assets and liabilities:
Trade and other receivables		(561.5	)		(309.0	)
Wholesale receivables on new trucks		(577.8	)		587.7
Inventories		(523.5	)		(1,349.2	)
Accounts payable and accrued expenses		937.0			506.8
Income taxes, warranty and other		45.8			(69.3	)
Net Cash Provided by Operating Activities		1,778.2			1,150.2
INVESTING ACTIVITIES:
Originations of retail loans and finance leases		(3,559.5	)		(3,379.3	)
Collections on retail loans and finance leases		2,932.3			2,991.0
Net (increase) decrease in wholesale receivables on used equipment		(15.2	)		12.5
Purchases of marketable debt securities		(723.8	)		(693.8	)
Proceeds from sales and maturities of marketable debt securities		591.5			542.7
Payments for property, plant and equipment		(393.7	)		(381.3	)
Acquisitions of equipment for operating leases		(688.1	)		(790.5	)
Proceeds from asset disposals		511.3			686.1
Other, net		26.7			(12.8	)
Net Cash Used in Investing Activities		(1,318.5	)		(1,025.4	)
FINANCING ACTIVITIES:
Payments of cash dividends		(875.9	)		(589.9	)
Purchases of treasury stock		(2.0	)		(1.5	)
Proceeds from stock compensation transactions		21.7			30.1
Net increase (decrease) in commercial paper, short-term bank loans and other		227.3			(303.5	)
Proceeds from term debt		2,302.7			1,802.1
Payments on term debt		(2,092.7	)		(2,327.2	)
Net Cash Used in Financing Activities		(418.9	)		(1,389.9	)
Effect of exchange rate changes on cash and cash equivalents		(145.6	)		(46.7	)
Net Decrease in Cash and Cash Equivalents		(104.8	)		(1,311.8	)
Cash and cash equivalents at beginning of period		3,428.3			3,539.6
Cash and cash equivalents at end of period	$	3,323.5		$	2,227.8

See Notes to Consolidated Financial Statements.

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Consolidated Statements of Stockholders’ Equity (Unaudited)

(Millions, Except Per Share Amounts)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
COMMON STOCK, $1 PAR VALUE:
Balance at beginning of period	$	347.7		$	347.2		$	347.3		$	346.6
Stock compensation		.1						.5			.6
Balance at end of period		347.8			347.2			347.8			347.2
ADDITIONAL PAID-IN CAPITAL:
Balance at beginning of period		174.0			128.9			142.0			88.5
Stock compensation		6.0			2.9			38.0			43.3
Balance at end of period		180.0			131.8			180.0			131.8
TREASURY STOCK, AT COST:
Balance at beginning of period		(1.9	)		(1.4	)
Purchases		(.1	)		(.1	)		(2.0	)		(1.5	)
Balance at end of period		(2.0	)		(1.5	)		(2.0	)		(1.5	)
RETAINED EARNINGS:
Balance at beginning of period		13,109.9			11,885.2			12,025.8			11,148.5
Net income		769.4			380.5			2,090.3			1,346.8
Cash dividends declared on common stock		(118.5	)		(118.2	)		(355.3	)		(347.8	)
Balance at end of period		13,760.8			12,147.5			13,760.8			12,147.5
ACCUMULATED OTHER COMPREHENSIVE LOSS:
Balance at beginning of period		(1,111.7	)		(1,029.6	)		(921.1	)		(1,050.3	)
Other comprehensive loss		(281.4	)		(115.6	)		(472.0	)		(94.9	)
Balance at end of period		(1,393.1	)		(1,145.2	)		(1,393.1	)		(1,145.2	)
Total Stockholders’ Equity	$	12,893.5		$	11,479.8		$	12,893.5		$	11,479.8
Cash dividends declared on common stock, per share	$	.34		$	.34		$	1.02		$	1.00

See Notes to Consolidated Financial Statements.

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Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

NOTE A - Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, refer to the consolidated financial statements and footnotes included in PACCAR Inc’s (PACCAR or the Company) Annual Report on Form 10‑K for the year ended December 31, 2021.

Earnings per Share: Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding, plus the effect of any participating securities. Diluted earnings per common share are computed assuming that all potentially dilutive securities are converted into common shares under the treasury stock method. The dilutive and antidilutive options are shown separately in the table below.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Additional shares		463,000		519,900		485,600		678,000
Antidilutive options		1,091,300		580,400		1,100,300		583,600

Change in Accounting: In the first quarter of 2022, the Company changed the method of accounting for its U.S. inventories from last-in-first-out (LIFO) to first-in-first-out (FIFO). Inventories valued using the LIFO method comprised 41% of consolidated inventories before deducting the LIFO reserve at December 31, 2021. The Company believes the FIFO method is preferable because it better matches cost with revenues, it results in a more consistent method to value inventory with its foreign subsidiaries and it improves comparability with industry peers. This change increased Retained Earnings by $143.3 million to $11,148.5 million at January 1, 2021. The effects of the change in accounting principle have been retrospectively applied to all periods presented:

The effect of the changes made to the Company’s Consolidated Statements of Comprehensive Income was as follows:

Three Months Ended September 30, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE			AS ADJUSTED
Truck, Parts and Other
Cost of sales and revenues	$	4,180.1	$	(3.9	)	$	4,176.2
Income Taxes		105.6		1.1			106.7
Net Income		377.7		2.8			380.5

Nine Months Ended September 30, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE			AS ADJUSTED
Truck, Parts and Other
Cost of sales and revenues	$	13,533.5	$	(8.2	)	$	13,525.3
Income Taxes		386.9		2.1			389.0
Net Income		1,340.7		6.1			1,346.8

The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet was as follows:

December 31, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE		AS ADJUSTED
Truck, Parts and Other
Inventories, net	$	1,768.3	$	207.7	$	1,976.0
Other liabilities		1,436.5		51.1		1,487.6
Retained earnings		11,869.2		156.6		12,025.8

The change in accounting policy did not materially affect basic or diluted net income per share or income before income taxes within the Truck, Parts and Other segments for the three and nine months ended September 30, 2021. There was no impact on total net cash provided by operating activities.

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Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

The following table compares the amounts currently reported to amounts that would have been reported under LIFO in the Consolidated Statements of Comprehensive Income.

Three Months Ended September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Cost of sales and revenues	$	5,689.3	$	5,699.1	$	(9.8	)
Income Taxes		210.3		207.9		2.4
Net Income		769.4		762.0		7.4
Net Income Per Share
Basic	$	2.21	$	2.19	$	.02
Diluted	$	2.21	$	2.18	$	.03

Nine Months Ended September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Cost of sales and revenues	$	16,785.8	$	16,821.5	$	(35.7	)
Income Taxes		582.9		574.1		8.8
Net Income		2,090.3		2,063.4		26.9
Net Income Per Share
Basic	$	6.00	$	5.92	$	.08
Diluted	$	5.99	$	5.91	$	.08

The effect of the change to income before income taxes within the Truck, Parts and Other segments for the three months and nine months ended September 30, 2022 would not be material. In addition, there would be no material effect on the Consolidated Statements of Cash Flows.

The following table compares the amounts currently reported to amounts that would have been reported under LIFO in the Consolidated Balance Sheet.

September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Inventories, net	$	2,382.1	$	2,138.7	$	243.4
Accounts payable, accrued expenses and other		4,381.8		4,321.9		59.9
Retained earnings		13,760.8		13,577.3		183.5

New Accounting Pronouncements: The Company adopted the following standards on January 1, 2022, which had no material impact on the Company’s consolidated financial statements.

STANDARD	DESCRIPTION
2021-05	Leases (Topic 842) - Lessors—Certain Leases with Variable Lease Payments
2021-10	Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance

The Financial Accounting Standards Board (FASB) also issued the following standards, which are not expected to have a material impact on the Company’s consolidated financial statements.

STANDARD	DESCRIPTION	EFFECTIVE DATE
2022-02*	Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures	January 1, 2023
2022-03*	Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions	January 1, 2024

*     The Company will adopt on the effective date.

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Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

NOTE B – Sales and Revenues

Truck, Parts and Other

The Company enters into sales contracts with customers associated with purchases of the Company’s products and services including trucks, parts, product support, and other related services. Generally, the Company recognizes revenue for the amount of consideration it will receive for delivering a product or service to a customer. Revenue is recognized when the customer obtains control of the product or receives benefits of the service. The Company excludes sales taxes, value added taxes and other related taxes assessed by government agencies from revenue. There are no significant financing components included in product or services revenue since generally customers pay shortly after the products or services are transferred. In the Truck and Parts segment, when the Company grants extended payment terms on selected receivables and charges interest, interest income is recognized when earned.

The following table disaggregates Truck, Parts and Other revenues by major sources:  

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Truck
Truck sales	$	4,991.4	$	3,258.3	$	14,602.7	$	11,253.7
Revenues from extended warranties, operating leases and other		206.8		194.3		629.0		584.1
		5,198.2		3,452.6		15,231.7		11,837.8
Parts
Parts sales		1,429.3		1,226.1		4,171.9		3,528.1
Revenues from dealer services and other		42.2		34.1		123.2		104.1
		1,471.5		1,260.2		4,295.1		3,632.2
Winch sales and other		17.3		24.9		52.8		68.8
Truck, Parts and Other sales and revenues	$	6,687.0	$	4,737.7	$	19,579.6	$	15,538.8

The Company recognizes truck and parts sales as revenues when control of the products is transferred to customers which generally occurs upon shipment, except for certain truck sales which are subject to a residual value guarantee (RVG) by the Company. The standard payment term for trucks and aftermarket parts is typically within 30 days, but the Company may grant extended payment terms on selected receivables. The Company recognizes revenue for the invoice amount adjusted for estimated sales incentives and returns. Sales incentives and returns are estimated based on historical experience and are adjusted to current period revenue when the most likely amount of consideration the Company expects to receive changes or becomes fixed. Truck and parts sales include a standard product warranty which is included in cost of sales. The Company has elected to treat delivery services as a fulfillment activity with revenues recognized when the customer obtains control of the product. Delivery revenue is included in revenues and the related costs are included in cost of sales. As a practical expedient, the Company is not disclosing truck order backlog, as a significant majority of the backlog has a duration of less than one year.

Truck sales with RVGs that allow customers the option to return their truck are accounted for as a sale when the customer does not have an economic incentive to return the truck to the Company, or as an operating lease when the customer does have an economic incentive to return the truck. The estimate of customers’ economic incentive to return the trucks is based on an analysis of historical guaranteed buyback value and estimated market value. When truck sales with RVGs are accounted for as a sale, revenue is recognized when the truck is transferred to the customer less an amount for expected returns. Expected return rates are estimated by using a historical weighted average return rate over an eight-year period.

Aftermarket parts sales allow for returns which are estimated at the time of sale based on historical data. Parts dealer services and other revenues are recognized as services are performed.

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Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

The following table presents the balance sheet classification of the estimated value of the truck assets to be returned goods assets and the related return liabilities:

	September 30, 2022				December 31, 2021
	ASSETS		LIABILITIES		ASSETS		LIABILITIES
Trucks
Other current assets	$	177.8			$	255.7
Accounts payable, accrued expenses and other			$	180.5			$	264.0
Other noncurrent assets, net		290.8				403.6
Other liabilities				304.9				423.9
	$	468.6	$	485.4	$	659.3	$	687.9
Parts
Other current assets	$	82.0			$	72.9
Accounts payable, accrued expenses and other			$	193.5			$	172.1
	$	82.0	$	193.5	$	72.9	$	172.1

For contracts accounted for as a sale, the Company’s total commitment to acquire trucks at a guaranteed value was $934.3 at September 30, 2022.

Revenues from extended warranties, operating leases and other include optional extended warranty and repair and maintenance (R&M) service contracts which can be purchased for periods generally ranging up to five years. The Company defers revenue based on stand-alone observable selling prices when it receives payments in advance and generally recognizes the revenue on a straight-line basis over the warranty or R&M contract periods. See Note F, Product Support Liabilities, in the Notes to the Consolidated Financial Statements for further information. Also included are truck sales with an RVG accounted for as an operating lease. A liability is created for the residual value obligation with the remainder of the proceeds recorded as deferred revenue. The deferred revenue is recognized on a straight-line basis over the guarantee period, which typically ranges from three to five years. Deferred revenue related to trucks sold with an RVG was $52.7 at September 30, 2022. The Company expects to recognize approximately $7.6 of the remaining deferred revenue in 2022, $24.3 in 2023, $13.1 in 2024, $4.8 in 2025 and $2.9 in 2026. For the three and nine months ended September 30, 2022, total operating lease revenue from truck sales with RVGs was $29.3 and $79.2, respectively compared to $24.9 and $75.2 for the three and nine months ended September 30, 2021. The Company’s total commitment to acquire trucks at a guaranteed value for contracts accounted for as a lease was $174.3 at September 30, 2022.

Revenue from winch sales and other is primarily derived from the industrial winch business. Winch sales are recognized when the product is transferred to a customer, which generally occurs upon shipment. Also within this category are other revenues not attributable to a reportable segment.

Financial Services

The Company’s Financial Services segment products include loans to customers collateralized by the vehicles being financed, finance leases for retail customers and dealers, dealer wholesale financing which includes floating-rate wholesale loans to PACCAR dealers for new and used trucks, and operating leases which include rentals on Company owned equipment. Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts using the straight-line method which approximates the interest method.

Operating lease rental revenue is recognized on a straight-line basis over the term of the lease. Customer contracts may include additional services such as excess mileage, repair and maintenance and other services on which revenue is recognized when earned. The Company’s full-service lease arrangements bundle these additional services. Rents for full-service lease contracts are allocated between lease and non-lease components based on the relative stand-alone price of each component. Taxes, such as sales and use and value added, which are collected by the Company from a customer, are excluded from the measurement of lease income and expenses.    

Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at September 30, 2022 or December 31, 2021. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms.

- 11 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

Finance leases are secured by the trucks and related equipment being leased and the lease terms generally range from three to five years depending on the type and use of the equipment. The lessee is required to either purchase the equipment or guarantee to the Company a stated residual value upon the disposition of the equipment at the end of the finance lease term.

Operating lease terms generally range from three to five years. At the end of the operating lease term, the lessee has the option to return the equipment to the Company or purchase the equipment at its fair market value.  

The Company determines its estimate of the residual value of leased vehicles by considering the length of the lease term, the truck model, the expected usage of the truck and anticipated market demand. If the sales price of the truck at the end of the agreement differs from the Company’s estimated residual value, a gain or loss will result. Future market conditions, changes in government regulations and other factors outside the Company’s control could impact the ultimate sales price of trucks returned under these contracts. Residual values are reviewed regularly and adjusted if market conditions warrant.

The following table summarizes Financial Services lease revenues by lease type:  

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Finance lease revenues	$	46.6	$	46.7	$	134.5	$	142.8
Operating lease revenues		192.4		206.4		595.7		627.9
Total lease revenues	$	239.0	$	253.1	$	730.2	$	770.7

NOTE C - Investments in Marketable Securities

Debt Securities

The Company's investments in marketable debt securities are classified as available-for-sale. These investments are stated at fair value and may include an allowance for credit losses. Changes in the allowance for credit losses are recognized in the current period earnings and any unrealized gains or losses, net of tax, are included as a component of accumulated other comprehensive income (loss) (AOCI).

The Company utilizes third-party pricing services for all of its marketable debt security valuations. The Company reviews the pricing methodology used by the third‑party pricing services, including the manner employed to collect market information. On a quarterly basis, the Company also performs review and validation procedures on the pricing information received from the third‑party providers. These procedures help ensure the fair value information used by the Company is determined in accordance with applicable accounting guidance.

The Company evaluates its investment in marketable debt securities at the end of each reporting period to determine if a decline in fair value is the result of credit losses or unrealized losses. In assessing credit losses, the Company considers the collectability of principal and interest payments by monitoring changes to issuers’ credit ratings, specific credit events associated with individual issuers as well as the credit ratings of any financial guarantor. The Company considers its intent for selling the security and whether it is more likely than not the Company will be able to hold the security until the recovery of any credit losses and unrealized losses. Charges against the allowance for credit losses occur when a security with credit losses is sold or the Company no longer intends to hold that security.

Equity Securities

Marketable equity securities are traded on active exchanges and are measured at fair value. The realized and unrealized gains (losses) are recognized in investment income.

- 12 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

Marketable securities at September 30, 2022 and December 31, 2021 consisted of the following:

			UNREALIZED	UNREALIZED		FAIR
At September 30, 2022	COST		GAINS	LOSSES		VALUE
Marketable debt securities
U.S. tax-exempt securities	$	455.5		$	12.6	$	442.9
U.S. taxable municipal / non-U.S. provincial bonds		187.5			11.4		176.1
U.S. corporate securities		249.3			13.8		235.5
U.S. government and agency securities		112.3			3.3		109.0
Non-U.S. corporate securities		428.0			19.7		408.3
Non-U.S. government securities		73.1			3.0		70.1
Other debt securities		104.8			5.0		99.8
Marketable equity securities		15.4			12.9		2.5
Total marketable securities	$	1,625.9		$	81.7	$	1,544.2

			UNREALIZED		UNREALIZED		FAIR
At December 31, 2021	COST		GAINS		LOSSES		VALUE
Marketable debt securities
U.S. tax-exempt securities	$	431.4	$	1.5	$	.4	$	432.5
U.S. taxable municipal / non-U.S. provincial bonds		192.2		.6		1.2		191.6
U.S. corporate securities		208.3		.6		1.5		207.4
U.S. government and agency securities		95.9		.6		.1		96.4
Non-U.S. corporate securities		443.9		1.4		2.5		442.8
Non-U.S. government securities		75.2		.1		.3		75.0
Other debt securities		100.4		.3		.7		100.0
Marketable equity securities		15.4		1.3		3.0		13.7
Total marketable securities	$	1,562.7	$	6.4	$	9.7	$	1,559.4

The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest and dividend income and realized gains and losses are included in investment income. The cost of securities sold is based on the specific identification method. Gross realized gains were $.5 and $1.6 and gross realized losses were $1.5 and $.1 for the nine months periods ended September 30, 2022 and 2021, respectively.

Marketable debt securities with continuous unrealized losses and their related fair values were as follows:

	September 30, 2022				December 31, 2021
	LESS THAN		TWELVE MONTHS		LESS THAN		TWELVE MONTHS
	TWELVE MONTHS		OR GREATER		TWELVE MONTHS		OR GREATER
Fair value	$	1,231.6	$	281.0	$	911.2	$	1.3
Unrealized losses		47.4		21.4		6.7

The unrealized losses on marketable debt securities above were due to higher yields on certain securities. The Company did not identify any indicators of a credit loss in its assessments. Accordingly, no allowance for credit losses was recorded at September 30, 2022 and December 31, 2021. The Company does not currently intend, and it is more likely than not that it will not be required to sell the investment securities before recovery of the unrealized losses. The Company expects that the contractual principal and interest will be received on the investment securities.

Contractual maturities of marketable debt securities at September 30, 2022 were as follows:

	AMORTIZED		FAIR
	COST		VALUE
Within one year	$	448.4	$	442.4
One to five years		1,139.6		1,078.6
Six to ten years		9.0		8.9
More than ten years		13.5		11.8
	$	1,610.5	$	1,541.7

- 13 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

NOTE D - Inventories

Inventories are stated at the lower of cost or market. Cost of inventories is determined principally by the first-in, first-out (FIFO) method.

Inventories include the following:

	September 30		December 31
	2022		2021
Finished products	$	826.5	$	676.0
Work in process and raw materials		1,555.6		1,300.0
	$	2,382.1	$	1,976.0

In the first quarter of 2022, the Company changed the method of accounting for its U.S. inventories from last-in-first-out (LIFO) to first-in-first-out (FIFO) and all prior periods have been retrospectively applied. See Note A - Basis of Presentation of this Quarterly Report on Form 10-Q.

NOTE E - Finance and Other Receivables

Finance and other receivables include the following:

	September 30			December 31
	2022			2021
Loans	$	6,750.4		$	6,424.7
Finance leases		3,472.4			3,620.6
Dealer wholesale financing		2,307.8			1,865.8
Operating lease receivables and other		136.5			126.6
		12,667.1			12,037.7
Less allowance for losses:
Loans and leases		(111.3	)		(111.5	)
Dealer wholesale financing		(3.5	)		(3.3	)
Operating lease receivables and other		(3.1	)		(2.1	)
	$	12,549.2		$	11,920.8

Included in Finance and other receivables, net on the Consolidated Balance Sheets is accrued interest receivable (net of allowance for credit losses) of $44.3 and $27.7 as of September 30, 2022 and December 31, 2021, respectively. The net activity of dealer direct loans and dealer wholesale financing on new trucks is shown in the operating section of the Condensed Consolidated Statements of Cash Flows since those receivables finance the sale of Company inventory.

Allowance for Credit Losses

The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list.  

The Company modifies loans and finance leases in the normal course of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification.  

When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies a loan or finance lease for credit reasons and grants a concession, the modification is classified as a troubled debt restructuring (TDR). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs.

- 14 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

On average, modifications extended contractual terms by approximately three months in 2022 and four months in 2021, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2022 and December 31, 2021.

The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over three to five years, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves.

The Company individually evaluates certain finance receivables for impairment. Finance receivables that are evaluated individually for impairment consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. A finance receivable is impaired if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. In addition, all retail loans and leases which have been classified as TDRs and all customer accounts over 90 days past due are considered impaired. Generally, impaired accounts are on non-accrual status. Impaired accounts classified as TDRs which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments.

Impaired receivables are generally considered collateral dependent. Large balance retail and all wholesale impaired receivables are individually evaluated to determine the appropriate reserve for losses. The determination of reserves for large balance impaired receivables considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s amortized cost basis, no reserve is recorded. Small balance impaired receivables with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below.  

The Company evaluates finance receivables that are not individually impaired and share similar risk characteristics on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss data provides relevant information of expected credit losses. The historical information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse.

The Company has developed a range of loss estimates for each of its country portfolios based on historical experience, taking into account loss frequency and severity in both strong and weak truck market conditions. A projection is made of the range of estimated credit losses inherent in the portfolio from which an amount is determined based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and markets in which the Company conducts business. The Company utilizes economic forecasts from third party sources and determines expected losses based on historical experience under similar market conditions. After determining the appropriate level of the allowance for credit losses, a provision for losses on finance receivables is charged to income as necessary to reflect management’s estimate of expected credit losses, net of recoveries, inherent in the portfolio.

In determining the fair value of the collateral, the Company uses a pricing matrix and categorizes the fair value as Level 2 in the hierarchy of fair value measurement. The pricing matrix is reviewed quarterly and updated as appropriate. The pricing matrix considers the make, model and year of the equipment as well as recent sales prices of comparable equipment sold individually, which is the lowest unit of account, through wholesale channels to the Company’s dealers (principal market). The fair value of the collateral also considers the overall condition of the equipment.

Accounts are charged off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost basis.

- 15 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating five or more trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk.    

The allowance for credit losses is summarized as follows:

	2022
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	3.3		$	7.1		$	104.4		$	2.1		$	116.9
Provision for losses		.4			(3.3	)		8.1			(1.4	)		3.8
Charge-offs								(6.3	)		(.1	)		(6.4	)
Recoveries		.1						5.2			1.8			7.1
Currency translation and other		(.3	)					(3.9	)		.7			(3.5	)
Balance at September 30	$	3.5		$	3.8		$	107.5		$	3.1		$	117.9

	2021
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	3.4		$	8.4		$	112.0		$	3.2		$	127.0
Provision for losses		(1.0	)		(.7	)		3.5			1.4			3.2
Charge-offs								(9.7	)		(1.3	)		(11.0	)
Recoveries								4.1			.2			4.3
Currency translation and other								(1.7	)		(.1	)		(1.8	)
Balance at September 30	$	2.4		$	7.7		$	108.2		$	3.4		$	121.7

* Operating leases and other trade receivables.

Credit Quality

The Company's customers are principally concentrated in the transportation industry in North America, Europe, Australia and Brasil. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 5% of the total portfolio assets. The Company retains as collateral a security interest in the related equipment.

At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss.

The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high‑risk. Watch accounts are not impaired. At-risk accounts are accounts that are impaired, including TDRs, accounts over 90 days past due and other accounts on non-accrual status.

- 16 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class.  

	REVOLVING
At September 30, 2022	LOANS		2022		2021		2020		2019		2018		PRIOR		TOTAL
Dealer:
Wholesale:
Performing	$	2,304.8													$	2,304.8
Watch		3.0														3.0
	$	2,307.8													$	2,307.8
Retail:
Performing	$	197.0	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	140.3	$	1,718.9
At-risk														.8		.8
	$	197.0	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	141.1	$	1,719.7
Total dealer	$	2,504.8	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	141.1	$	4,027.5
Customer retail:
Fleet:
Performing			$	2,468.8	$	2,121.2	$	1,404.3	$	702.3	$	264.2	$	135.4	$	7,096.2
Watch				2.4		6.1		4.5		4.1		2.5		.6		20.2
At-risk				6.4		16.5		13.0		19.7		7.1		1.2		63.9
			$	2,477.6	$	2,143.8	$	1,421.8	$	726.1	$	273.8	$	137.2	$	7,180.3
Owner/operator:
Performing			$	386.3	$	451.4	$	273.3	$	135.7	$	56.0	$	13.6	$	1,316.3
Watch				.9		.6		.8		.4		.2				2.9
At-risk				.1		.6		.9		1.1		.8		.1		3.6
			$	387.3	$	452.6	$	275.0	$	137.2	$	57.0	$	13.7	$	1,322.8
Total customer retail			$	2,864.9	$	2,596.4	$	1,696.8	$	863.3	$	330.8	$	150.9	$	8,503.1
Total	$	2,504.8	$	3,239.1	$	2,967.7	$	1,936.5	$	1,126.6	$	463.9	$	292.0	$	12,530.6

- 17 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

	REVOLVING
At December 31, 2021	LOANS		2021		2020		2019		2018		2017		PRIOR		TOTAL
Dealer:
Wholesale:
Performing	$	1,859.7													$	1,859.7
Watch		6.1														6.1
	$	1,865.8													$	1,865.8
Retail:
Performing	$	201.9	$	434.4	$	315.4	$	311.7	$	176.0	$	118.2	$	96.9	$	1,654.5
Watch				7.0		3.6		9.1		4.6		1.1				25.4
At-risk														1.1		1.1
	$	201.9	$	441.4	$	319.0	$	320.8	$	180.6	$	119.3	$	98.0	$	1,681.0
Total dealer	$	2,067.7	$	441.4	$	319.0	$	320.8	$	180.6	$	119.3	$	98.0	$	3,546.8
Customer retail:
Fleet:
Performing			$	2,851.7	$	1,913.3	$	1,227.0	$	608.4	$	220.4	$	66.5	$	6,887.3
Watch				2.6		6.5		4.3		5.3		.6		.2		19.5
At-risk				6.0		8.5		26.0		10.6		3.3		.4		54.8
			$	2,860.3	$	1,928.3	$	1,257.3	$	624.3	$	224.3	$	67.1	$	6,961.6
Owner/operator:
Performing			$	611.9	$	389.9	$	228.1	$	116.0	$	38.6	$	10.1	$	1,394.6
Watch				.7		.5		.7		.4		.1				2.4
At-risk				.2		1.3		1.5		2.0		.5		.2		5.7
			$	612.8	$	391.7	$	230.3	$	118.4	$	39.2	$	10.3	$	1,402.7
Total customer retail			$	3,473.1	$	2,320.0	$	1,487.6	$	742.7	$	263.5	$	77.4	$	8,364.3
Total	$	2,067.7	$	3,914.5	$	2,639.0	$	1,808.4	$	923.3	$	382.8	$	175.4	$	11,911.1

The tables below summarize the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes.

	DEALER				CUSTOMER RETAIL
							OWNER/
At September 30, 2022	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	2,307.3	$	1,719.7	$	7,142.0	$	1,317.6	$	12,486.6
31 – 60 days past due		.5				8.8		2.2		11.5
Greater than 60 days past due						29.5		3.0		32.5
	$	2,307.8	$	1,719.7	$	7,180.3	$	1,322.8	$	12,530.6

	DEALER				CUSTOMER RETAIL
							OWNER/
At December 31, 2021	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	1,865.4	$	1,681.0	$	6,939.7	$	1,396.4	$	11,882.5
31 – 60 days past due		.4				9.3		1.8		11.5
Greater than 60 days past due						12.6		4.5		17.1
	$	1,865.8	$	1,681.0	$	6,961.6	$	1,402.7	$	11,911.1

- 18 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

The amortized cost basis of finance receivables that are on non-accrual status was as follows:

	DEALER			CUSTOMER RETAIL
						OWNER/
At September 30, 2022	WHOLESALE	RETAIL		FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	36.5	$	3.4	$	39.9
Amortized cost basis with no specific reserve		$	.8		8.3				9.1
Total		$	.8	$	44.8	$	3.4	$	49.0

	DEALER			CUSTOMER RETAIL
						OWNER/
At December 31, 2021	WHOLESALE	RETAIL		FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	40.3	$	5.7	$	46.0
Amortized cost basis with no specific reserve		$	1.1		4.7				5.8
Total		$	1.1	$	45.0	$	5.7	$	51.8

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Dealer:
Retail					$	.1	$	.1
Customer retail:
Fleet	$	.6	$	.7		2.0		2.4
Owner/operator		.1		.2		.2		.4
	$	.7	$	.9	$	2.3	$	2.9

Troubled Debt Restructurings

The balance of TDRs was $34.2 and $41.6 at September 30, 2022 and December 31, 2021, respectively. At modification date, the pre-modification and post-modification amortized cost basis balances for finance receivables modified during the period by portfolio class are as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2022				September 30, 2022
	AMORTIZED COST BASIS				AMORTIZED COST BASIS
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	1.6	$	1.6	$	9.7	$	9.7

	Three Months Ended				Nine Months Ended
	September 30, 2021				September 30, 2021
	AMORTIZED COST BASIS				AMORTIZED COST BASIS
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	1.0	$	1.0	$	5.8	$	5.7
Owner/operator						1.0		1.0
	$	1.0	$	1.0	$	6.8	$	6.7

The effect on the allowance for credit losses from such modifications was not significant at September 30, 2022 and 2021.

TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past due) in the nine months ended September 30, 2022 and 2021 were $.8 and nil, respectively.

- 19 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

There were no finance receivables modified as TDRs during the previous twelve months that subsequently defaulted and were charged off in the nine months ended September 30, 2022 and 2021, respectively.

Repossessions

When the Company determines a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating leases. The Company records the vehicles as used truck inventory included in Financial Services Other assets on the Consolidated Balance Sheets. The balance of repossessed inventory at September 30, 2022 and December 31, 2021 was $6.1 and $4.7, respectively. Proceeds from the sales of repossessed assets were $16.1 and $33.9 for the nine months ended September 30, 2022 and 2021, respectively. These amounts are included in Proceeds from asset disposals in the Condensed Consolidated Statements of Cash Flows. Write-downs of repossessed equipment on operating leases are recorded as impairments and included in Financial Services Depreciation and other expenses on the Consolidated Statements of Comprehensive Income.

NOTE F - Product Support Liabilities

Product support liabilities include estimated future payments related to product warranties and deferred revenues on optional extended warranties and R&M. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical and current data and reasonable expectations for the future regarding the frequency and cost of warranty claims, net of any recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred.

Changes in product support liabilities are summarized as follows:

WARRANTY RESERVES	2022			2021
Balance at January 1	$	344.3		$	389.7
Cost accruals		269.4			218.9
Payments		(302.9	)		(309.7	)
Change in estimates for pre-existing warranties		80.6			43.4
Currency translation and other		(23.2	)		(5.0	)
Balance at September 30	$	368.2		$	337.3

DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS		2022			2021
Balance at January 1	$	775.2		$	795.8
Deferred revenues		439.7			350.7
Revenues recognized		(352.7	)		(363.8	)
Currency translation		(56.7	)		(15.5	)
Balance at September 30	$	805.5		$	767.2

The Company expects to recognize approximately $70.7 of the remaining deferred revenue on extended warranties and R&M contracts in 2022, $245.3 in 2023, $232.4 in 2024, $142.0 in 2025, $78.1 in 2026 and $37.0 thereafter.

- 20 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

NOTE G - Stockholders’ Equity

Comprehensive Income

The components of comprehensive income are as follow:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
Net income	$	769.4		$	380.5		$	2,090.3		$	1,346.8
Other comprehensive income (loss) (OCI):
Unrealized gains on derivative contracts		24.3			8.2			61.4			29.4
Tax effect		(6.3	)		(1.6	)		(17.2	)		(7.6	)
		18.0			6.6			44.2			21.8
Unrealized losses on marketable debt securities		(22.7	)		(3.4	)		(67.2	)		(12.2	)
Tax effect		5.5			.7			16.6			2.9
		(17.2	)		(2.7	)		(50.6	)		(9.3	)
Pension plans		20.2			22.7			50.4			49.0
Tax effect		(5.1	)		(5.4	)		(12.6	)		(11.6	)
		15.1			17.3			37.8			37.4
Foreign currency translation losses		(297.3	)		(136.8	)		(503.4	)		(144.8	)
Net other comprehensive loss		(281.4	)		(115.6	)		(472.0	)		(94.9	)
Comprehensive income	$	488.0		$	264.9		$	1,618.3		$	1,251.9

Accumulated Other Comprehensive Income (Loss)

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

Three Months Ended September 30, 2022	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at July 1, 2022	$	12.7		$	(34.5	)	$	(247.1	)	$	(842.8	)	$	(1,111.7	)
Recorded into AOCI		56.2			(16.9	)		9.5			(297.3	)		(248.5	)
Reclassified out of AOCI		(38.2	)		(.3	)		5.6						(32.9	)
Net other comprehensive income (loss)		18.0			(17.2	)		15.1			(297.3	)		(281.4	)
Balance at September 30, 2022	$	30.7		$	(51.7	)	$	(232.0	)	$	(1,140.1	)	$	(1,393.1	)

Three Months Ended September 30, 2021	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at July 1, 2021	$	(14.0	)	$	8.0		$	(558.0	)	$	(465.6	)	$	(1,029.6	)
Recorded into AOCI		35.3			(2.5	)		6.1			(136.8	)		(97.9	)
Reclassified out of AOCI		(28.7	)		(.2	)		11.2						(17.7	)
Net other comprehensive income (loss)		6.6			(2.7	)		17.3			(136.8	)		(115.6	)
Balance at September 30, 2021	$	(7.4	)	$	5.3		$	(540.7	)	$	(602.4	)	$	(1,145.2	)

Nine Months Ended September 30, 2022	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2022	$	(13.5	)	$	(1.1	)	$	(269.8	)	$	(636.7	)	$	(921.1	)
Recorded into AOCI		90.7			(50.0	)		20.9			(503.4	)		(441.8	)
Reclassified out of AOCI		(46.5	)		(.6	)		16.9						(30.2	)
Net other comprehensive income (loss)		44.2			(50.6	)		37.8			(503.4	)		(472.0	)
Balance at September 30, 2022	$	30.7		$	(51.7	)	$	(232.0	)	$	(1,140.1	)	$	(1,393.1	)

- 21 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

Nine Months Ended September 30, 2021	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2021	$	(29.2	)	$	14.6		$	(578.1	)	$	(457.6	)	$	(1,050.3	)
Recorded into AOCI		42.8			(8.2	)		3.3			(144.8	)		(106.9	)
Reclassified out of AOCI		(21.0	)		(1.1	)		34.1						12.0
Net other comprehensive income (loss)		21.8			(9.3	)		37.4			(144.8	)		(94.9	)
Balance at September 30, 2021	$	(7.4	)	$	5.3		$	(540.7	)	$	(602.4	)	$	(1,145.2	)

Reclassifications out of AOCI were as follows:

		Three Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	September 30
AOCI COMPONENTS	COMPREHENSIVE INCOME		2022			2021
Unrealized losses (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	2.0		$	1.3
	Cost of sales and revenues		(6.2	)		(3.5	)
	Interest and other (income), net		3.9			(.5	)
Commodity contracts	Cost of sales and revenues		7.0
Financial Services
Foreign-exchange contracts	Interest and other borrowing expenses		(3.0	)
Interest-rate contracts	Interest and other borrowing expenses		(56.2	)		(35.4	)
	Pre-tax expense reduction		(52.5	)		(38.1	)
	Tax expense		14.3			9.4
	After-tax expense reduction		(38.2	)		(28.7	)
Unrealized gains 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	Interest and other (income), net		7.1			14.7
Prior service costs	Interest and other (income), net		.2			.2
	Pre-tax expense increase		7.3			14.9
	Tax benefit		(1.7	)		(3.7	)
	After-tax expense increase		5.6			11.2
Total reclassifications out of AOCI		$	(32.9	)	$	(17.7	)

- 22 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

		Nine Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	September 30
AOCI COMPONENTS	COMPREHENSIVE INCOME		2022			2021
Unrealized losses (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	17.1		$	14.9
	Cost of sales and revenues		(3.5	)		2.5
	Interest and other (income), net		8.8			(.2	)
Commodity contracts	Cost of sales and revenues		17.4
Financial Services
Foreign-exchange contracts	Interest and other borrowing expenses		(7.6	)
Interest-rate contracts	Interest and other borrowing expenses		(99.3	)		(45.9	)
	Pre-tax expense reduction		(67.1	)		(28.7	)
	Tax expense		20.6			7.7
	After-tax expense reduction		(46.5	)		(21.0	)
Unrealized gains on marketable debt securities:
Marketable debt securities	Investment income		(.8	)		(1.5	)
	Tax expense		.2			.4
	After-tax income increase		(.6	)		(1.1	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Interest and other (income), net		21.7			44.2
Prior service costs	Interest and other (income), net		.5			.6
	Pre-tax expense increase		22.2			44.8
	Tax benefit		(5.3	)		(10.7	)
	After-tax expense increase		16.9			34.1
Total reclassifications out of AOCI		$	(30.2	)	$	12.0

Stock Compensation Plans

Stock-based compensation expense was $2.6 and $15.1 for the three months and nine months ended September 30, 2022, respectively and $2.6 and $12.0 for the three months and nine months ended September 30, 2021, respectively.

During the first nine months of 2022, the Company issued 437,947 common shares under deferred and stock compensation arrangements.  

Other Capital Stock Changes

During the first nine months of 2022, the Company acquired no treasury shares under the Company’s common stock repurchase plans. The Company acquired 21,853 shares under the Company’s Long-Term Incentive Plan. Stock repurchases of $390.0 million remain authorized under the current $500.0 million program approved by the PACCAR Board of Directors on December 4, 2018.

NOTE H - Income Taxes

The effective tax rate for the third quarter of 2022 was 21.5% compared to 21.9% for the third quarter of 2021. The effective tax rate for the first nine months of 2022 was 21.8% compared to 22.4% for the same period of 2021. The lower effective tax rate in the third quarter and first nine months of 2022 was primarily due to the change in mix of income generated in jurisdictions with lower tax rates in 2022 as compared to 2021.

- 23 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

NOTE I - Segment Information

PACCAR operates in three principal segments: Truck, Parts and Financial Services. The Company evaluates the performance of its Truck and Parts segments based on operating profits, which excludes investment income, other income and expense and income taxes. The Financial Services segment’s performance is evaluated based on income before income taxes. The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Truck and Parts

The Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks and the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles, both of which are sold through the same network of independent dealers. These segments derive a large proportion of their revenues and operating profits from operations in North America and Europe. The Truck segment incurs substantial costs to design, manufacture and sell trucks to its customers. The sale of new trucks provides the Parts segment with the basis for parts sales that may continue over the life of the truck, but are generally concentrated in the first five years after truck delivery. To reflect the benefit the Parts segment receives from costs incurred by the Truck segment, certain expenses are allocated from the Truck segment to the Parts segment. The expenses allocated are based on a percentage of the average annual expenses for factory overhead, engineering, research and development and SG&A expenses for the preceding five years. The allocation is based on the ratio of the average parts direct margin dollars (net sales less material and labor costs) to the total truck and parts direct margin dollars for the previous five years. The Company believes such expenses have been allocated on a reasonable basis. Truck segment assets related to the indirect expense allocation are not allocated to the Parts segment.

Financial Services

The Financial Services segment derives its earnings primarily from financing or leasing of PACCAR products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe.

In Europe, the Financial Services and Truck segments centralized the marketing of used trucks, including those units sold by the Truck segment subject to an RVG. When a customer returns the truck at the end of the RVG contract, the Company’s Truck segment records a reduction in an RVG liability and the Company’s Financial Services segment records a used truck asset and revenue from the subsequent sale. Certain gains and losses from the sale of these used trucks are shared with the Truck segment.

- 24 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

Other

Included in Other is the Company’s industrial winch manufacturing business as well as sales, income and expenses not attributable to a reportable segment. Other also includes non-service cost components of pension expense and a portion of corporate expenses.

	Three Months Ended						Nine Months Ended
	September 30						September 30
		2022			2021			2022			2021
Net sales and revenues:
Truck	$	5,389.8		$	3,583.2		$	15,724.8		$	12,277.6
Less intersegment		(191.6	)		(130.6	)		(493.1	)		(439.8	)
External customers		5,198.2			3,452.6			15,231.7			11,837.8
Parts		1,487.3			1,275.2			4,343.2			3,677.8
Less intersegment		(15.8	)		(15.0	)		(48.1	)		(45.6	)
External customers		1,471.5			1,260.2			4,295.1			3,632.2
Other		17.3			24.9			52.8			68.8
		6,687.0			4,737.7			19,579.6			15,538.8
Financial Services		371.9			409.1			1,110.6			1,297.4
	$	7,058.9		$	5,146.8		$	20,690.2		$	16,836.2
Income before income taxes:
Truck	$	430.5		$	80.4		$	1,129.3		$	606.9
Parts		373.6			282.1			1,067.1			800.5
Other		8.0			3.0			14.9			13.9
		812.1			365.5			2,211.3			1,421.3
Financial Services		146.2			120.1			437.6			303.0
Investment (loss) income		21.4			1.6			24.3			11.5
	$	979.7		$	487.2		$	2,673.2		$	1,735.8
Depreciation and amortization:
Truck	$	86.3		$	63.5		$	235.6		$	204.2
Parts		3.5			2.8			10.0			8.6
Other		6.0			5.3			17.9			16.0
		95.8			71.6			263.5			228.8
Financial Services		107.2			138.3			322.1			463.5
	$	203.0		$	209.9		$	585.6		$	692.3

NOTE J - Derivative Financial Instruments

As part of its risk management strategy, the Company enters into derivative contracts to hedge against the risks of interest rates, foreign currency rates and commodity prices. Certain derivative instruments designated as fair value hedges, cash flow hedges or net investment hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedging instruments. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate, commodity as well as certain foreign-exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral.

Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $238.0 at September 30, 2022.

The Company assesses hedges at inception and on an ongoing basis to determine that the designated derivatives are highly effective in offsetting changes in fair values or cash flow of the hedged items. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in Operating activities in the Condensed Consolidated Statements of Cash Flows.

- 25 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

Interest-Rate Contracts: The Company enters into various interest-rate contracts, including interest-rate swaps and cross currency interest-rate swaps. Interest-rate swaps involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency. Cross currency interest-rate swaps involve the exchange of notional amounts and interest payments in different currencies. The Company is exposed to interest-rate and exchange-rate risk caused by market volatility as a result of its borrowing activities. The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings. Net amounts paid or received are reflected as adjustments to interest expense.

At September 30, 2022, the notional amount of the Company’s interest-rate contracts was $2,710.0. Notional maturities for all interest-rate contracts are $184.5 for the remainder of 2022, $631.4 for 2023, $572.1 for 2024, $912.1 for 2025, $244.0 for 2026, $155.1 for 2027 and $10.8 thereafter.

Foreign-Exchange Contracts: The Company enters into foreign-exchange contracts to hedge certain anticipated transactions and assets and liabilities denominated in foreign currencies, particularly the Canadian dollar, the euro, the British pound, the Australian dollar, the Brazilian real and the Mexican peso. The objective is to reduce fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. The Company enters into foreign-exchange contracts as net investment hedges to reduce the foreign currency exposure from its investments in foreign subsidiaries. At September 30, 2022, the notional amount of the outstanding foreign-exchange contracts was $2,142.2. Foreign-exchange contracts mature within two years.

Commodity Contracts: The Company enters into commodity forward contracts to hedge the prices of certain commodities used in the production of trucks. The objective is to reduce the fluctuation in earnings and cash flows associated with movement in commodity prices. At September 30, 2022, the notional amount of the outstanding commodity contracts was $40.7. Commodity contracts mature within one year.

- 26 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

The following table presents the balance sheet classification, fair value, gross and pro forma net amounts of derivative financial instruments:

	September 30, 2022						December 31, 2021
	ASSETS			LIABILITIES			ASSETS			LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	131.1					$	30.8
Deferred taxes and other liabilities				$	62.6					$	54.4
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		101.0						25.3
Accounts payable, accrued expenses and other					5.2						15.8
Financial Services:
Other current assets		3.9						2.5
Deferred taxes and other liabilities					3.9						.1
Commodity contracts:
Truck, Parts and Other:
Accounts payable, accrued expenses and other					11.2						16.9
	$	236.0		$	82.9		$	58.6		$	87.2
Derivatives not designated as hedging instruments:
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	1.8					$	1.0
Accounts payable, accrued expenses and other				$	1.1					$	1.1
Financial Services:
Other assets		.2						.1
Deferred taxes and other liabilities					.2						.2
	$	2.0		$	1.3		$	1.1		$	1.3
Gross amounts recognized in Balance Sheets	$	238.0		$	84.2		$	59.7		$	88.5
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts	$	(3.5	)	$	(3.5	)	$	(2.7	)	$	(2.7	)
Financial Services:
Foreign-exchange contracts								(.2	)		(.2	)
Interest-rate contracts		(17.7	)		(17.7	)		(12.8	)		(12.8	)
Pro forma net amount	$	216.8		$	63.0		$	44.0		$	72.8

- 27 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

The following table presents the amount of loss (gain) from derivative financial instruments recorded in the Consolidated Statements of Comprehensive Income:

	Three Months Ended						Nine Months Ended
	September 30, 2022						September 30, 2022
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE
Truck, Parts and Other:
Net sales and revenues
Cash flow hedges				$	2.0					$	17.1
Cost of sales and revenues
Cash flow hedges					(6.2	)					(3.5	)
Derivatives not designated as hedging instruments					.4						.3
Interest and other (income), net
Cash flow hedges					3.9						8.8
Net investment hedges					(1.4	)					(4.2	)
Derivatives not designated as hedging instruments					(5.8	)					(4.5	)
				$	(7.1	)				$	14.0
Financial Services:
Interest and other borrowing expenses
Cash flow hedges	$	(56.2	)	$	(3.0	)	$	(99.3	)	$	(7.6	)
Fair value hedges		(.2	)					(.1	)
Derivatives not designated as hedging instruments					2.9						3.1
	$	(56.4	)	$	(.1	)	$	(99.4	)	$	(4.5	)
Total	$	(56.4	)	$	(7.2	)	$	(99.4	)	$	9.5

	Three Months Ended						Nine Months Ended
	September 30, 2021						September 30, 2021
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE
Truck, Parts and Other:
Net sales and revenues
Cash flow hedges				$	1.3					$	14.9
Cost of sales and revenues
Cash flow hedges					(3.5	)					2.5
Derivatives not designated as hedging instruments					17.8						8.8
Interest and other (income), net
Cash flow hedges					(.5	)					(.2	)
Net investment hedges					(.7	)					(2.4	)
Derivatives not designated as hedging instruments					(.6	)					1.0
				$	13.8					$	24.6
Financial Services:
Interest and other borrowing expenses
Cash flow hedges	$	(35.4	)				$	(45.9	)
Fair value hedges								.1
Derivatives not designated as hedging instruments				$	(.3	)				$	(.7	)
	$	(35.4	)	$	(.3	)	$	(45.8	)	$	(.7	)
Total	$	(35.4	)	$	13.5		$	(45.8	)	$	23.9

Utilization of commodity hedging was initiated in Q3 2021. The loss from commodity contracts recorded in Cost of sales and revenue was $7.0 and $17.4 for the three months and nine months ended September 30, 2022.

- 28 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

Fair Value Hedges  

Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with the changes in fair value of the hedged item attributable to the risk being hedged. The following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

	September 30		December 31
	2022		2021
Financial Services
Term notes:
Carrying amount of the hedged liabilities	$	329.3	$	472.0
Cumulative basis adjustment included in the carrying amount		28.6		8.7

The above table excludes the cumulative basis adjustments on discontinued hedge relationships of $7.0 and $(.1) as of September 30, 2022 and December 31, 2021, respectively.

Cash Flow Hedges

Substantially all of the Company’s interest-rate contracts and some foreign-exchange contracts and all commodity contracts have been designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in AOCI. Amounts in AOCI are reclassified into net income in the same period in which the hedged transaction affects earnings. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 5.8 years.

The following tables presents the pre-tax effects of gain (loss) on cash flow hedges recognized in other comprehensive income (loss) (OCI):

	Three Months Ended								Nine Months Ended
	September 30, 2022								September 30, 2022
	INTEREST-		FOREIGN-						INTEREST-		FOREIGN-
	RATE		EXCHANGE			COMMODITY			RATE		EXCHANGE			COMMODITY
Gain (loss) recognized in OCI:
Truck, Parts and Other			$	35.4		$	(7.9	)			$	35.5		$	(15.7	)
Financial Services	$	49.4		(.1	)				$	109.1		(.4	)
	$	49.4	$	35.3		$	(7.9	)	$	109.1	$	35.1		$	(15.7	)
	Three Months Ended								Nine Months Ended
	September 30, 2021								September 30, 2021
	INTEREST-		FOREIGN-						INTEREST-		FOREIGN-
	RATE		EXCHANGE			COMMODITY			RATE		EXCHANGE			COMMODITY
Gain (loss) recognized in OCI:
Truck, Parts and Other			$	2.3		$	(9.8	)			$	(6.7	)	$	(9.8	)
Financial Services	$	43.4		.6					$	67.1		(2.3	)
	$	43.4	$	2.9		$	(9.8	)	$	67.1	$	(9.0	)	$	(9.8	)

The amount of loss recorded in AOCI at September 30, 2022 that is estimated to be reclassified into earnings in the following 12 months if interest rates and exchange rates remain unchanged is approximately $25.1, net of taxes. The fixed interest earned on finance receivables will offset the amount recognized in interest expense, resulting in a stable interest margin consistent with the Company’s risk management strategy.

The amount of gains reclassified out of AOCI into net income based on the probability that the original forecasted transactions would not occur was nil and $.1 for the three months and nine months ended September 30, 2022, respectively and nil for both the three and nine months ended September 30, 2021.  

Net Investment Hedges

Changes in the fair value of derivatives designated as net investment hedges are recorded in AOCI as an adjustment to the Cumulative Translation Adjustment (CTA). At September 30, 2022, the notional amount of the outstanding net investment hedges was $347.0. For the three and nine months ended September 30, 2022, the pre-tax gain recognized in OCI for the net investment hedges were $22.8 and $58.8, respectively.

- 29 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

Derivatives Not Designated As Hedging Instruments

For other risk management purposes, the Company enters into derivative instruments that do not qualify for hedge accounting. These derivative instruments are used to mitigate the risk of market volatility arising from borrowings and foreign currency denominated transactions. Changes in the fair value of derivatives not designated as hedging instruments are recorded in earnings in the period in which the change occurs.

NOTE K - Fair Value Measurements

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below.

Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment.

Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment.

The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements.  

Marketable Debt Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1.  

The fair value of U.S. government agency obligations, non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2.

Marketable Equity Securities: The Company’s equity securities are traded on active exchanges and are classified as Level 1.

Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps, foreign currency exchange and commodity contracts. These derivative contracts are traded over the counter, and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads, forward rates and commodity prices and are categorized as Level 2.

- 30 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

Assets and Liabilities Subject to Recurring Fair Value Measurement

The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows:

At September 30, 2022	LEVEL 1		LEVEL 2		TOTAL
Assets:
Marketable debt securities
U.S. tax-exempt securities			$	442.9	$	442.9
U.S. taxable municipal / non-U.S. provincial bonds				176.1		176.1
U.S. corporate securities				235.5		235.5
U.S. government and agency securities	$	109.0				109.0
Non-U.S. corporate securities				408.3		408.3
Non-U.S. government securities				70.1		70.1
Other debt securities				99.8		99.8
Total marketable debt securities	$	109.0	$	1,432.7	$	1,541.7
Marketable equity securities	$	2.5			$	2.5
Total marketable securities	$	111.5	$	1,432.7	$	1,544.2
Derivatives
Cross currency swaps			$	119.1	$	119.1
Interest-rate swaps				12.0		12.0
Foreign-exchange contracts				106.9		106.9
Total derivative assets			$	238.0	$	238.0
Liabilities:
Derivatives
Cross currency swaps			$	34.1	$	34.1
Interest-rate swaps				28.5		28.5
Foreign-exchange contracts				10.4		10.4
Commodity contracts				11.2		11.2
Total derivative liabilities			$	84.2	$	84.2

- 31 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

At December 31, 2021	LEVEL 1		LEVEL 2		TOTAL
Assets:
Marketable debt securities
U.S. tax-exempt securities			$	432.5	$	432.5
U.S. taxable municipal / non-U.S. provincial bonds				191.6		191.6
U.S. corporate securities				207.4		207.4
U.S. government and agency securities	$	96.4				96.4
Non-U.S. corporate securities				442.8		442.8
Non-U.S. government securities				75.0		75.0
Other debt securities				100.0		100.0
Total marketable debt securities	$	96.4	$	1,449.3	$	1,545.7
Marketable equity securities	$	13.7			$	13.7
Total marketable securities	$	110.1	$	1,449.3	$	1,559.4
Derivatives
Cross currency swaps			$	18.2	$	18.2
Interest-rate swaps				12.6		12.6
Foreign-exchange contracts				28.9		28.9
Total derivative assets			$	59.7	$	59.7
Liabilities:
Derivatives
Cross currency swaps			$	33.1	$	33.1
Interest-rate swaps				21.3		21.3
Foreign-exchange contracts				17.2		17.2
Commodity contracts				16.9		16.9
Total derivative liabilities			$	88.5	$	88.5

Fair Value Disclosure of Other Financial Instruments

For financial instruments that are not recognized at fair value, the Company uses the following methods and assumptions to determine the fair value. These instruments are categorized as Level 2, except cash which is categorized as Level 1 and fixed rate loans which are categorized as Level 3.

Cash and Cash Equivalents: Carrying amounts approximate fair value.

Financial Services Net Receivables: For floating rate loans, wholesale financing and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on assumptions regarding the credit and market risks to approximate current rates for comparable loans. Finance lease receivables and related allowance for credit losses have been excluded from the accompanying table.

Debt: The carrying amounts of Financial Services commercial paper, variable rate bank loans and variable rate term notes approximate fair value. For fixed rate debt, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable debt.

The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows:

	September 30, 2022				December 31, 2021
	CARRYING		FAIR		CARRYING		FAIR
	AMOUNT		VALUE		AMOUNT		VALUE
Assets:
Financial Services fixed rate loans	$	6,399.8	$	6,115.0	$	6,011.7	$	6,018.2
Liabilities:
Financial Services fixed rate debt		7,046.1		6,681.2		6,905.7		6,935.1

- 32 -

Notes to Consolidated Financial Statements (Unaudited) (Millions, Except Share Amounts)

NOTE L - Employee Benefit Plans

The Company has several defined benefit pension plans, which cover a majority of its employees. The following information details the components of net pension expense for the Company’s defined benefit plans:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
Service cost	$	37.7		$	37.6		$	113.5		$	113.0
Interest on projected benefit obligation		21.0			16.7			63.9			50.0
Expected return on assets		(53.2	)		(51.1	)		(162.0	)		(153.4	)
Amortization of prior service costs		.2			.2			.5			.6
Recognized actuarial loss		7.1			14.7			21.7			44.2
Net pension expense	$	12.8		$	18.1		$	37.6		$	54.4

The components of net pension expense other than service cost are included in Interest and other (income), net on the Consolidated Statements of Comprehensive Income.

During the three months and nine months ended September 30, 2022, the Company contributed $21.1 and $34.3 to its pension plans, respectively, and $6.3 and $19.2 for the three and nine months ended September 30, 2021, respectively.

NOTE M – Commitments and Contingencies

On July 19, 2016, the European Commission (EC) concluded its investigation of all major European truck manufacturers and reached a settlement with DAF Trucks N.V., DAF Trucks Deutschland GmbH and PACCAR Inc (collectively “the Company”). Following the settlement, certain EC-related claims and lawsuits have been filed in various European jurisdictions against all major European truck manufacturers including the Company and certain subsidiaries. These claims and lawsuits include a number of collective proceedings, including a class action in the United Kingdom, alleging EC-related claims and seeking alleged damages. In certain jurisdictions, the limitations period has not yet expired and additional claimants may bring EC-related claims and lawsuits against the Company or its subsidiaries.

The legal proceedings are continuing to move through the court systems in the various jurisdictions with some larger cases awaiting judgment in 2022 and others scheduled for trial in upcoming years. While the Company believes it has meritorious defenses to all EC-related claims and lawsuits, the final disposition of all such claims and lawsuits will likely take a significant period of time to resolve and the final outcomes are highly uncertain. The Company cannot at this time reasonably estimate a range of loss, if any, that may result. Adverse final decisions involving significant numbers of DAF truck sales could have a material impact on the Company’s results of operations and cash flows.

PACCAR is also a defendant in various other legal proceedings and, in addition, there are various other contingent liabilities arising in the normal course of business. After consultation with legal counsel, management does not anticipate that disposition of these various other proceedings and contingent liabilities will have a material effect on the consolidated financial statements.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW:

PACCAR is a global technology company whose Truck segment includes the design and manufacture of high-quality light-, medium- and heavy-duty commercial trucks. In North America, trucks are sold under the Kenworth and Peterbilt nameplates, in Europe, under the DAF nameplate and in Australia and South America, under the Kenworth and DAF nameplates. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Company’s Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe, Australia and South America. The Company’s Other business includes the manufacturing and marketing of industrial winches.

Third Quarter Financial Highlights:

• Worldwide net sales and revenues were $7.06 billion in 2022 compared to $5.15 billion in 2021, primarily due to higher truck and parts revenues.

• Truck revenues were $5.20 billion in 2022 compared to $3.45 billion in 2021, primarily due to higher truck deliveries and price realization in all markets.

• Parts sales were $1.47 billion in 2022 compared to $1.26 billion in 2021 reflecting higher demand and price realization in all markets.

• Financial Services revenues were $371.9 million in 2022 compared to $409.1 million in 2021, primarily due to lower used truck sales.

• Net income was $769.4 million ($2.21 per diluted share) in 2022 compared to $380.5 million ($1.09 per diluted share) in 2021 due to higher Truck, Parts and Financial Services operating results.

• Capital investments were $115.0 million in 2022 compared to $133.0 million in 2021.

• Research and development (R&D) expenses were $82.9 million in 2022 compared to $72.5 million in 2021.

First Nine Months Financial Highlights:

• Worldwide net sales and revenues were $20.69 billion in 2022 compared to $16.84 billion in 2021, primarily due to higher truck and parts revenues.

• Truck revenues were $15.23 billion in 2022 compared to $11.84 billion in 2021, primarily due to higher truck deliveries and price realization in all markets.

• Parts sales were $4.30 billion in 2022 compared to $3.63 billion in 2021 reflecting higher demand and price realization in all markets.

• Financial Services revenues were $1.11 billion in 2022 compared to $1.30 billion in 2021, primarily due to lower used truck sales.

• Net income was $2.09 billion ($5.99 per diluted share) in 2022 compared to $1.35 billion ($3.87 per diluted share) in 2021 due to higher Truck, Parts and Financial Services operating results.

• Capital investments were $349.5 million in 2022 compared to $347.4 million in 2021.

• Research and development (R&D) expenses were $241.3 million in 2022 compared to $237.0 million in 2021.

The new DAF XD truck was named International Truck of the Year 2023 at the IAA truck show in Hannover, Germany in the third quarter. The DAF XD truck represents a new generation of distribution and vocational vehicles. The DAF XD shares many features and design elements with the new DAF XF, XG, and XG+ trucks, which were named International Truck of the Year 2022. The new DAF XD sets an industry benchmark in vocational performance and driver comfort. The versatile DAF XD is available as a tractor or rigid truck with a high performance PACCAR engine.

The PACCAR Financial Services (PFS) group of companies has operations covering four continents and 26 countries. The global breadth of PFS and its rigorous credit application process support a portfolio of loans and leases with total assets of $15.92 billion. PFS issued $2.23 billion in medium-term notes during the first nine months of 2022 to support new business volume and repay maturing debt.

- 34 -

Conflict in Ukraine

In accordance with international sanctions, the Company has suspended truck and parts sales to Russia and Belarus.  The Company has no factories in Russia and has managed export sales to Russia through independent dealers. In 2021, 2,500 trucks were sold into Russia and Belarus. The Company also sold parts in these markets through a third-party owned warehouse. The trucks were sold on a fully paid-up basis; accordingly, the Company does not have significant receivables exposure. Inventory balances are not significant. The conflict has affected energy supplies in Europe. If the availability of energy in Europe is severely constrained, truck delivery volumes could be impacted. The Company continues to monitor the situation closely. The conflict has not yet had a significant impact on the results of operations or cash flows of the Company.

Truck Outlook

Truck industry heavy-duty retail sales in the U.S. and Canada in 2022 are expected to be 265,000 to 285,000 units compared to 250,000 in 2021. Estimates for the U.S. and Canada truck industry retail sales in 2023 are in the range of 260,000 to 300,000 units. In Europe, 2022 truck industry registrations for over 16-tonne vehicles are expected to be 275,000 to 295,000 units compared to 278,000 in 2021. The European truck industry registrations in the above 16-tonne truck market in 2023 are projected to be in a range 260,000 to 300,000 units. In South America, heavy-duty truck industry registrations in 2022 are projected to be 125,000 to 135,000 as compared to 127,000 in 2021. Heavy-duty truck industry sales in South America in 2023 are projected to be in a range of 125,000 to 135,000 units.

The Company has been affected by an industry-wide undersupply of component parts, and anticipates the shortages will continue to affect deliveries in the fourth quarter of the year and into 2023.

Parts Outlook

In 2022, PACCAR Parts sales are expected to increase 14-16% compared to 2021 levels reflecting strong freight demand. In 2023, PACCAR Parts sales are expected to increase 5-8% from 2022 levels.

Financial Services Outlook

Based on the truck market outlook, average earning assets in 2022 are expected to increase 1-3% including unfavorable foreign exchange impacts compared to 2021. Current high levels of freight tonnage, freight rates and fleet utilization are contributing to customers’ profitability and cash flow. In 2023, average earning assets are expected to increase 3-5% compared to 2022.

Capital Investments and R&D Outlook

Capital investments in 2022 are expected to be $475 to $500 million and R&D is expected to be $330 to $340 million. In 2023, capital investments are projected to be $525 to $575 million and R&D is expected to be $350 to $400 million. The Company is investing in clean diesel and zero emissions powertrain technologies, autonomous driving systems, connected vehicle services, and next-generation manufacturing and distribution capabilities.

See the Forward-Looking Statements section of Management’s Discussion and Analysis for factors that may affect these outlooks.

- 35 -

RESULTS OF OPERATIONS:

The Company’s results of operations for the three and nine months ended September 30, 2022 and 2021 are presented below.

	Three Months Ended						Nine Months Ended
	September 30						September 30
($ in millions, except per share amounts)	2022			2021			2022			2021
Net sales and revenues:
Truck	$	5,198.2		$	3,452.6		$	15,231.7		$	11,837.8
Parts		1,471.5			1,260.2			4,295.1			3,632.2
Other		17.3			24.9			52.8			68.8
Truck, Parts and Other		6,687.0			4,737.7			19,579.6			15,538.8
Financial Services		371.9			409.1			1,110.6			1,297.4
	$	7,058.9		$	5,146.8		$	20,690.2		$	16,836.2
Income before income taxes:
Truck	$	430.5		$	80.4		$	1,129.3		$	606.9
Parts		373.6			282.1			1,067.1			800.5
Other		8.0			3.0			14.9			13.9
Truck, Parts and Other		812.1			365.5			2,211.3			1,421.3
Financial Services		146.2			120.1			437.6			303.0
Investment income		21.4			1.6			24.3			11.5
Income taxes		(210.3	)		(106.7	)		(582.9	)		(389.0	)
Net income	$	769.4		$	380.5		$	2,090.3		$	1,346.8
Diluted earnings per share	$	2.21		$	1.09		$	5.99		$	3.87
After-tax return on revenues		10.9	%		7.4	%		10.1	%		8.0	%

The following provides an analysis of the results of operations for the Company’s three reportable segments - Truck, Parts and Financial Services. Where possible, the Company has quantified the impact of factors identified in the following discussion and analysis. In cases where it is not possible to quantify the impact of factors, the Company lists them in estimated order of importance. Factors for which the Company is unable to specifically quantify the impact include market demand, fuel prices, freight tonnage, economic conditions and COVID-19 related factors affecting the Company’s results of operations.

2022 Compared to 2021:

Truck

The Company’s Truck segment accounted for 74% of revenues in the third quarter and first nine months of 2022 compared to 67% and 70% in the third quarter and first nine months of 2021, respectively.

The Company’s new truck deliveries are summarized below:

	Three Months Ended					Nine Months Ended
	September 30					September 30
		2022	2021	% CHANGE			2022	2021	% CHANGE
U.S. and Canada		24,400	17,200		42		69,500	62,800		11
Europe		13,300	9,700		37		44,800	35,200		27
Mexico, South America, Australia and other		6,700	5,900		14		20,000	17,100		17
Total units		44,400	32,800		35		134,300	115,100		17

The increase in new truck deliveries worldwide in the third quarter and first nine months of 2022 compared to the same period of 2021 was driven by higher deliveries in all markets. The industry-wide undersupply of component products continues to impact deliveries.

- 36 -

Market share data discussed below is provided by third-party sources and is measured by either registrations or retail sales for the Company’s dealer network as a percentage of total registrations or retail sales depending on the geographic market. In the U.S. and Canada, market share is based on retail sales. In Europe, market share is based primarily on registrations.

In the first nine months of 2022, industry retail sales in the heavy-duty market in the U.S. and Canada were 201,000 units compared to 185,000 units in the same period of 2021. The Company’s heavy-duty truck retail market share was 29.4% in the first nine months of 2022 compared to 29.6% in the first nine months of 2021. The medium-duty market was 64,200 units in the first nine months of 2022 compared to 62,200 units in the same period of 2021. The Company’s medium-duty market share was 10.0% in the first nine months of 2022 compared to 20.6% in the first nine months of 2021.

The over 16‑tonne truck market in Europe in the first nine months of 2022 was 218,000 units compared to 207,000 units in the first nine months of 2021. DAF over 16‑tonne market share was a 17.4% in the first nine months of 2022 compared to 15.8% in the same period of 2021. The 6 to 16‑tonne market in the first nine months of 2022 was 28,700 units compared to 31,700 units in the same period of 2021. DAF market share in the 6 to 16-tonne market in the first nine months of 2022 was 10.1% compared to 10.2% in the same period of 2021.

The Company’s worldwide truck net sales and revenues are summarized below:  

	Three Months Ended								Nine Months Ended
	September 30								September 30
($ in millions)		2022			2021		% CHANGE			2022			2021		% CHANGE
Truck net sales and revenues:
U.S. and Canada	$	3,200.8		$	1,996.1			60	$	8,948.4		$	7,094.3			26
Europe		1,239.0			829.5			49		4,080.0			2,948.6			38
Mexico, South America, Australia and other		758.4			627.0			21		2,203.3			1,794.9			23
	$	5,198.2		$	3,452.6			51	$	15,231.7		$	11,837.8			29
Truck income before income taxes	$	430.5		$	80.4			435	$	1,129.3		$	606.9			86
Pre-tax return on revenues		8.3	%		2.3	%				7.4	%		5.1	%

The Company’s worldwide truck net sales and revenues in the third quarter increased to $5.20 billion in 2022 from $3.45 billion in 2021. Revenues for the first nine months increased to $15.23 billion in 2022 from $11.84 billion in 2021. The increase in both periods was primarily due to higher truck unit deliveries and improved price realization in all markets, partially offset by unfavorable currency translation effects.

In the third quarter and first nine months of 2022, Truck segment income before taxes and pretax return on revenues increased compared to the same periods in 2021 reflecting higher truck unit deliveries and improved margins.

The major factors for the Truck segment changes in net sales and revenues, cost of sales and revenues and gross margin between the three months ended September 30, 2022 and 2021 are as follows:

	NET			COST OF
	SALES AND			SALES AND			GROSS
($ in millions)	REVENUES			REVENUES			MARGIN
Three Months Ended September 30, 2021	$	3,452.6		$	3,253.7		$	198.9
Increase (decrease)
Truck sales volume		1,444.9			1,204.3			240.6
Average truck sales prices		515.5						515.5
Average per truck material, labor and other direct costs					349.0			(349.0	)
Factory overhead and other indirect costs					36.2			(36.2	)
Extended warranties, operating leases and other		37.7			41.0			(3.3	)
Currency translation		(252.5	)		(238.0	)		(14.5	)
Total increase		1,745.6			1,392.5			353.1
Three Months Ended September 30, 2022	$	5,198.2		$	4,646.2		$	552.0

• Truck sales volume reflects higher unit deliveries in all major markets due to increased demand.

• Average truck sales prices increased sales by $515.5 million, primarily due to higher price realization worldwide.

• Average cost per truck increased cost of sales by $349.0 million, primarily reflecting higher raw material, freight, labor and product support costs.

• Factory overhead and other indirect costs increased $36.2 million, primarily due to higher labor costs, utilities and depreciation.

- 37 -

• Extended warranties, operating leases and other increased revenues by $37.7 million and cost of sales by $41.0 million primarily due to higher revenues and associated costs from repair and maintenance, service contracts and operating leases.

• The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the euro relative to the U.S. dollar.

• Truck gross margin was 10.6% in the third quarter of 2022 compared to 5.8% in the same period of 2021 due to the factors noted above.

The major factors for the Truck segment changes in net sales and revenues, cost of sales and revenues and gross margin between the nine months ended September 30, 2022 and 2021 are as follows:

	NET			COST OF
	SALES AND			SALES AND			GROSS
($ in millions)	REVENUES			REVENUES			MARGIN
Nine Months Ended September 30, 2021	$	11,837.8		$	10,865.9		$	971.9
Increase (decrease)
Truck sales volume		2,322.9			1,968.0			354.9
Average truck sales prices		1,546.9						1,546.9
Average per truck material, labor and other direct costs					1,251.9			(1,251.9	)
Factory overhead and other indirect costs					119.6			(119.6	)
Extended warranties, operating leases and other		99.3			63.8			35.5
Currency translation		(575.2	)		(538.5	)		(36.7	)
Total increase		3,393.9			2,864.8			529.1
Nine Months Ended September 30, 2022	$	15,231.7		$	13,730.7		$	1,501.0

• Truck sales volume reflects higher heavy-duty truck deliveries in all major markets, partially offset by lower medium-duty truck deliveries in the U.S. and Canada.

• Average truck sales prices increased sales by $1.55 billion, primarily due to higher price realization worldwide.

• Average cost per truck increased cost of sales by $1.25 billion, primarily reflecting higher raw material, freight, labor and product support costs.

• Factory overhead and other indirect costs increased $119.6 million, primarily due to higher labor costs, utilities and depreciation.

• Extended warranties, operating leases and other increased revenues by $99.3 million and cost of sales by $63.8 million, primarily due to higher revenues and associated costs from repair and maintenance, service contracts and operating leases. In addition, cost of sales and revenues was partially offset by gains on sales of used trucks and lower impairments in Europe due to an improved used truck market.

• The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the euro relative to the U.S. dollar.

• Truck gross margin was 9.9% in the first nine months of 2022 compared to 8.2% in the same period of 2021 due to the factors noted above.

Truck SG&A expense decreased in the third quarter of 2022 to $60.7 million from $66.4 million in 2021. The decrease was primarily due to lower sales and marketing costs and currency translation effects, partially offset by increased salaries and related expenses and higher travel costs. For the first nine months of 2022, Truck SG&A increased to $201.6 million from $191.4 million in 2021, primarily due to higher professional expenses, higher salaries and related expenses and travel costs, partially offset by currency translation effects.

As a percentage of sales, Truck SG&A decreased to 1.2% and 1.3% in the third quarter and first nine months of 2022, respectively, compared to 1.9% and 1.6% in the third quarter and first nine months of 2021.

- 38 -

Parts

The Company’s Parts segment accounted for 21% of revenues in the third quarter and first nine months of 2022 compared to 24% and 22% in the third quarter and first nine months of 2021, respectively.

	Three Months Ended									Nine Months Ended
	September 30									September 30
($ in millions)		2022			2021		% CHANGE				2022			2021		% CHANGE
Parts net sales and revenues:
U.S. and Canada	$	1,065.2		$	850.9			25		$	3,071.5		$	2,427.4			27
Europe		263.3			287.3			(8	)		832.5			861.5			(3	)
Mexico, South America, Australia and other		143.0			122.0			17			391.1			343.3			14
	$	1,471.5		$	1,260.2			17		$	4,295.1		$	3,632.2			18
Parts income before income taxes	$	373.6		$	282.1			32		$	1,067.1		$	800.5			33
Pre-tax return on revenues		25.4	%		22.4	%					24.8	%		22.0	%

The Company’s worldwide parts net sales and revenues for the third quarter increased to $1.47 billion in 2022 from $1.26 billion in 2021. For the first nine months, worldwide parts net sales and revenues increased to $4.30 billion in 2022 from $3.63 billion in 2021. The increase in both periods was primarily due to higher demand in all markets, partially offset by unfavorable currency translation effects.

For the third quarter and first nine months of 2022, the increase in Parts segment income before income taxes and pre-tax return on revenues was primarily due to higher sales volume and higher margins, partially offset by unfavorable currency translation effects.

The major factors for the changes in Parts segment net sales and revenues, cost of sales and revenues and gross margin between the three months ended September 30, 2022 and 2021 are as follows:

	NET			COST OF
	SALES AND			SALES AND			GROSS
($ in millions)	REVENUES			REVENUES			MARGIN
Three Months Ended September 30, 2021	$	1,260.2		$	901.7		$	358.5
Increase (decrease)
Aftermarket parts volume		104.9			73.4			31.5
Average aftermarket parts sales prices		159.9						159.9
Average aftermarket parts direct costs					67.4			(67.4	)
Warehouse and other indirect costs					12.9			(12.9	)
Currency translation		(53.5	)		(31.9	)		(21.6	)
Total increase		211.3			121.8			89.5
Three Months Ended September 30, 2022	$	1,471.5		$	1,023.5		$	448.0

• Aftermarket parts sales volume increased by $104.9 million and related cost of sales increased by $73.4 million due to higher demand in all markets.

• Average aftermarket parts sales prices increased sales by $159.9 million primarily due to higher price realization in North America and Europe.

• Average aftermarket parts direct costs increased $67.4 million due to higher material and freight costs.

• Warehouse and other indirect costs increased $12.9 million primarily due to higher salaries and related expenses and costs for supplies.

• The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the euro relative to the U.S. dollar.

• Parts gross margins in the third quarter of 2022 increased to 30.4% from 28.4% in the third quarter of 2021 due to the factors noted above.

- 39 -

The major factors for the changes in Parts segment net sales and revenues, cost of sales and revenues and gross margin between the nine months ended September 30, 2022 and 2021 are as follows:

	NET			COST OF
	SALES AND			SALES AND			GROSS
($ in millions)	REVENUES			REVENUES			MARGIN
Nine Months Ended September 30, 2021	$	3,632.2		$	2,603.1		$	1,029.1
Increase (decrease)
Aftermarket parts volume		360.0			236.2			123.8
Average aftermarket parts sales prices		419.6						419.6
Average aftermarket parts direct costs					189.7			(189.7	)
Warehouse and other indirect costs					39.3			(39.3	)
Currency translation		(116.7	)		(70.8	)		(45.9	)
Total increase		662.9			394.4			268.5
Nine Months Ended September 30, 2022	$	4,295.1		$	2,997.5		$	1,297.6

• Aftermarket parts sales volume increased by $360.0 million and related cost of sales increased by $236.2 million due to higher demand in all markets.

• Average aftermarket parts sales prices increased sales by $419.6 million primarily due to higher price realization in North America and Europe.

• Average aftermarket parts direct costs increased $189.7 million due to higher material and freight costs.

• Warehouse and other indirect costs increased $39.3 million primarily due to higher salaries and related expenses and costs for supplies.

• The currency translation effect on sales and cost of sales primarily reflects a decline in the value of the euro relative to the U.S. dollar.

• Parts gross margins in the first nine months of 2022 increased to 30.2% from 28.3% in the first nine months of 2021 due to the factors noted above.

Parts SG&A expense decreased in the third quarter of 2022 to $52.9 million from $53.4 million in 2021. The decrease was primarily due to lower sales and marketing costs and currency translation effects largely offset by higher salaries and related expenses. For the first nine months, Parts SG&A increased to $162.4 million in 2022 from $158.1 million in 2021 primarily due to higher salaries and related expenses, partially offset by lower sales and marketing costs and currency translation effects.

As a percentage of sales, Parts SG&A was 3.6% and 3.8% in the third quarter and first nine months of 2022, respectively, compared to 4.2% and 4.4% in the third quarter and first nine months of 2021.

- 40 -

Financial Services

The Company’s Financial Services segment accounted for 5% of revenues in the third quarter and first nine months of 2022, compared to 8% in the third quarter and first nine months of 2021.

	Three Months Ended							Nine Months Ended
	September 30							September 30
($ in millions)		2022		2021	% CHANGE				2022		2021	% CHANGE
New loan and lease volume:
U.S. and Canada	$	758.0	$	834.6		(9	)	$	2,412.0	$	2,533.6		(5	)
Europe		345.7		278.4		24			1,043.7		945.9		10
Mexico, Australia and other		333.4		252.5		32			964.4		717.9		34
	$	1,437.1	$	1,365.5		5		$	4,420.1	$	4,197.4		5
New loan and lease volume by product:
Loans and finance leases	$	1,190.8	$	1,128.1		6		$	3,639.4	$	3,460.9		5
Equipment on operating lease		246.3		237.4		4			780.7		736.5		6
	$	1,437.1	$	1,365.5		5		$	4,420.1	$	4,197.4		5
New loan and lease unit volume:
Loans and finance leases		10,000		9,040		11			29,730		28,890		3
Equipment on operating lease		2,800		2,680		4			8,760		8,040		9
		12,800		11,720		9			38,490		36,930		4
Average earning assets:
U.S. and Canada	$	8,608.7	$	8,634.6				$	8,622.6	$	8,726.9		(1	)
Europe		3,628.2		3,707.8		(2	)		3,773.0		3,821.8		(1	)
Mexico, Australia and other		2,579.6		2,120.7		22			2,475.0		2,077.2		19
	$	14,816.5	$	14,463.1		2		$	14,870.6	$	14,625.9		2
Average earning assets by product:
Loans and finance leases	$	10,228.8	$	10,041.6		2		$	10,194.7	$	9,950.8		2
Dealer wholesale financing		1,870.7		1,343.0		39			1,855.9		1,521.9		22
Equipment on lease and other		2,717.0		3,078.5		(12	)		2,820.0		3,153.2		(11	)
	$	14,816.5	$	14,463.1		2		$	14,870.6	$	14,625.9		2
Revenues:
U.S. and Canada	$	170.5	$	183.7		(7	)	$	507.4	$	591.2		(14	)
Europe		118.1		161.7		(27	)		372.5		519.8		(28	)
Mexico, Australia and other		83.3		63.7		31			230.7		186.4		24
	$	371.9	$	409.1		(9	)	$	1,110.6	$	1,297.4		(14	)
Revenue by product:
Loans and finance leases	$	135.2	$	122.1		11		$	382.4	$	362.3		6
Dealer wholesale financing		25.2		9.4		168			61.2		31.5		94
Equipment on lease and other		211.5		277.6		(24	)		667.0		903.6		(26	)
	$	371.9	$	409.1		(9	)	$	1,110.6	$	1,297.4		(14	)
Income before income taxes	$	146.2	$	120.1		22		$	437.6	$	303.0		44

For the third quarter, new loan and lease volume increased to $1,437.1 million in 2022 from $1,365.5 million in 2021. For the first nine months of 2022, new loan and lease unit volume increased to $4,420.1 million from $4,197.4 million in 2021. The volume increase for both periods reflects higher new loan and lease volume in Brasil, Europe and Mexico, partially offset by lower new loan and lease volume in the U.S. and Canada. The effect of currency translation decreased new loan and lease volume by $70.9 million and $151.6 million in the third quarter and first nine months of 2022, primarily due to the lower euro and Australian dollar relative to the U.S. dollar.

In the third quarter of 2022, PFS finance market share of new PACCAR truck sales was 24.4% compared to 26.7% in the third quarter of 2021. In the first nine months of 2022, PFS finance market share of new PACCAR truck sales was 25.7% compared to 26.5% in the first nine months of 2021.

In the third quarter of 2022, PFS revenues decreased to $371.9 million from $409.1 million in 2021. In the first nine months of 2022, PFS revenues decreased to $1,110.6 million from $1,297.4 million in 2021. The decreases for both periods were primarily due to lower used truck sales in Europe and the U.S. The effects of currency translation decreased PFS revenues by $22.4 million and $48.4 million in the third quarter and first nine months of 2022, respectively, primarily due to a lower euro relative to the U.S. dollar.

- 41 -

PFS income before income taxes increased to $146.2 million in the third quarter of 2022 from $120.1 million in the third quarter of 2021. In the first nine months of 2022, PFS income before income taxes increased to $437.6 million from $303.0 million in 2021. The increase in both periods was primarily due to improved used truck results and higher finance and lease margins driven by portfolio growth, partially offset by the translation of weaker foreign currencies. The effects of translating weaker foreign currencies to the U.S. dollar decreased PFS income before income taxes by $7.6 million and $16.0 million for the third quarter and first nine months of 2022, respectively, primarily due to a lower euro relative to the U.S. dollar.

Included in Financial Services “Other assets” on the Company’s Consolidated Balance Sheets are used trucks held for sale, net of impairments, of $133.9 million at September 30, 2022 and $92.1 million at December 31, 2021. These trucks are primarily units returned from matured operating leases in the ordinary course of business, and also include trucks acquired from repossessions or through acquisitions of used trucks in trades related to new truck sales and trucks returned from residual value guarantees (RVGs).

The Company recognized gains on used trucks, excluding repossessions, of $34.8 million in the third quarter of 2022 compared to gains of $15.8 million in the third quarter of 2021. Losses on multiple unit transactions for the third quarter of 2022 were $.1 compared to $.6 in 2021. Used truck losses related to repossessions, which are recognized as credit losses, and used truck gains, which are recognized as credit recoveries, were not significant for either the third quarter of 2022 or 2021.

The Company recognized gains on used trucks, excluding repossessions, of $104.7 million in the first nine months of 2022 compared to $4.7 million of gains in the first nine months of 2021. Losses on multiple unit transactions included in the first nine months of 2022 were $.2 million compared to $17.5 million in the first nine months of 2021. Used truck losses related to repossessions, which are recognized as credit losses, and used truck gains, which are recognized as credit recoveries, were not significant for the first nine months of 2022 or 2021.

The major factors for the changes in interest and fees, interest and other borrowing expenses and finance margin for the three months ended September 30, 2022 and 2021 are outlined below:

($ in millions)	INTEREST AND FEES			INTEREST AND OTHER BORROWING EXPENSES			FINANCE MARGIN
Three Months Ended September 30, 2021	$	131.5		$	35.3		$	96.2
Increase (decrease)
Average finance receivables		15.9						15.9
Average debt balances					3.7			(3.7	)
Yields		18.6						18.6
Borrowing rates					18.2			(18.2	)
Currency translation and other		(5.6	)		(1.4	)		(4.2	)
Total increase		28.9			20.5			8.4
Three Months Ended September 30, 2022	$	160.4		$	55.8		$	104.6

• Average finance receivables increased $1,204.3 million (excluding foreign exchange effects) in the third quarter of 2022 primarily due to higher average loan and dealer wholesale balances.

• Average debt balances increased $706.9 million (excluding foreign exchange effects) in the third quarter of 2022, reflecting higher funding requirements for the portfolio, which includes loans, finance leases, dealer wholesale and equipment on operating lease, mainly in Brasil, Europe and U.S.

• Higher portfolio yields (5.3% in 2022 compared to 4.6% in 2021) increased interest and fees by $18.6 million. The higher portfolio yields were primarily due to higher market rates in Europe, North America and Brasil.

• Higher borrowing rates (2.1% in 2022 compared to 1.4% in 2021) were primarily due to higher debt market rates in Europe, North America and Brasil.

• The currency translation effects reflect a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the euro.

- 42 -

The major factors for the changes in interest and fees, interest and other borrowing expenses and finance margin between the nine months ended September 30, 2022 and 2021 are outlined below:

($ in millions)	INTEREST AND FEES			INTEREST AND OTHER BORROWING EXPENSES			FINANCE MARGIN
Nine Months Ended September 30, 2021	$	393.8		$	114.9		$	278.9
Increase (decrease)
Average finance receivables		34.9						34.9
Average debt balances					5.5			(5.5	)
Yields		24.5						24.5
Borrowing rates					22.9			(22.9	)
Currency translation and other		(9.6	)		(1.3	)		(8.3	)
Total increase		49.8			27.1			22.7
Nine Months Ended September 30, 2022	$	443.6		$	142.0		$	301.6

• Average finance receivables increased $936.4 million (excluding foreign exchange effects) in the first nine months of 2022 primarily due to higher average loan and dealer wholesale balances.

• Average debt balances increased by $384.8 million (excluding foreign exchange effects) in the first nine months of 2022, reflecting higher funding requirements for the portfolio, which includes loans, finance leases, dealer wholesale and equipment on operating lease.

• Higher portfolio yields (4.9% in 2022 compared to 4.6% in 2021) increased interest and fees by $24.5 million. The higher portfolio yields were primarily due to higher market rates in Europe and Brasil.

• Higher borrowing rates (1.8% in 2022 compared to 1.4% in 2021) were primarily due to higher debt market rates in Europe and Brasil and Canada.

• The currency translation effects reflect a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the euro.

The following table summarizes operating lease, rental and other revenues and depreciation and other expenses:

	Three Months Ended				Nine Months Ended
	September 30				September 30
($ in millions)		2022		2021		2022		2021
Operating lease and rental revenues	$	197.3	$	214.3	$	610.4	$	649.7
Used truck sales		8.9		58.8		42.3		240.0
Insurance, franchise and other revenues		5.3		4.5		14.3		13.9
Operating lease, rental and other revenues	$	211.5	$	277.6	$	667.0	$	903.6
Depreciation of operating lease equipment	$	122.7	$	143.5	$	359.2	$	462.3
Vehicle operating expenses		4.6		19.4		24.0		76.6
Cost of used truck sales		9.3		56.1		41.2		237.3
Insurance, franchise and other expenses		.8		.8		1.9		2.8
Depreciation and other expenses	$	137.4	$	219.8	$	426.3	$	779.0

- 43 -

The major factors for the changes in operating lease, rental and other revenues, depreciation and other expenses and lease margin between the three months ended September 30, 2022 and 2021 are outlined below:

($ in millions)	OPERATING LEASE, RENTAL AND OTHER REVENUES			DEPRECIATION AND OTHER EXPENSES			LEASE MARGIN
Three Months Ended September 30, 2021	$	277.6		$	219.8		$	57.8
(Decrease) increase
Used truck sales		(48.5	)		(45.4	)		(3.1	)
Results on returned lease assets					(22.2	)		22.2
Average operating lease assets		(10.5	)		(8.4	)		(2.1	)
Revenue and cost per asset		8.9			5.1			3.8
Currency translation and other		(16.0	)		(11.5	)		(4.5	)
Total (decrease) increase		(66.1	)		(82.4	)		16.3
Three Months Ended September 30, 2022	$	211.5		$	137.4		$	74.1

• Lower sales volume of used trucks in Europe and the U.S. decreased revenues by $48.5 million and related depreciation and other expenses by $45.4 million.

• Results on returned lease assets decreased depreciation and other expenses by $22.2 million primarily due to higher gains on sales on returned lease units as a result of higher used truck market values.

• Average operating lease assets decreased $125.5 million (excluding foreign exchange effects), which decreased revenues by $10.5 million and related depreciation and other expenses by $8.4 million.

• Revenue per asset increased $8.9 million primarily due to higher rental utilization in North America and Europe. Cost per asset increased $5.1 million due to higher operating expenses.

• The currency translation effects reflect a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the euro.

The major factors for the changes in operating lease, rental and other revenues, depreciation and other expenses and lease margin between the nine months ended September 30, 2022 and 2021 are outlined below:

($ in millions)	OPERATING LEASE, RENTAL AND OTHER REVENUES			DEPRECIATION AND OTHER EXPENSES			LEASE MARGIN
Nine Months Ended September 30, 2021	$	903.6		$	779.0		$	124.6
(Decrease) increase
Used truck sales		(193.6	)		(192.0	)		(1.6	)
Results on returned lease assets					(119.4	)		119.4
Average operating lease assets		(26.6	)		(21.2	)		(5.4	)
Revenue and cost per asset		21.7			8.2			13.5
Currency translation and other		(38.1	)		(28.3	)		(9.8	)
Total (decrease) increase		(236.6	)		(352.7	)		116.1
Nine Months Ended September 30, 2022	$	667.0		$	426.3		$	240.7

• Lower sales volume of used trucks in Europe and the U.S. decreased revenues by $193.6 million and related depreciation and other expenses by $192.0 million.

• Results on returned lease assets decreased depreciation and other expenses by $119.4 million primarily due to higher gains on sales on returned lease units as a result of higher used truck market values.

• Average operating lease assets decreased $150.6 million (excluding foreign exchange effects), which decreased revenues by $26.6 million and related depreciation and other expenses by $21.2 million.

• Revenue per asset increased $21.7 million primarily due to higher rental utilization. Cost per asset increased $8.2 million due to higher operating expenses.

• The currency translation effects reflect a reflect a decrease in the value of foreign currencies relative to the U.S. dollar, primarily the euro.

- 44 -

Financial Services SG&A for the third quarter of 2022 decreased to $33.3 million from $33.9 million in the third quarter of 2021 primarily due to decreases in the value of foreign currencies relative to the U.S. dollar, partially offset by higher salaries and related expenses. For the first nine months, Financial Services SG&A increased to $100.9 million in 2022 from $97.3 million in 2021 primarily due to higher salaries and related expenses, partially offset by decreases in the value of foreign currencies relative to the U.S. dollar. As an annualized percentage of average earnings assets, Financial Services SG&A was .9% in the third quarter and first nine months of 2022 and 2021.

The following table summarizes the provision for losses on receivables and net charge-offs:

	Three Months Ended						Nine Months Ended
	September 30, 2022						September 30, 2022
($ in millions)	PROVISION FOR LOSSES ON RECEIVABLES			NET CHARGE- OFFS			PROVISION FOR LOSSES ON RECEIVABLES			NET CHARGE- OFFS
U.S. and Canada	$	(1.1	)	$	(.1	)	$	(4.0	)	$	(.8	)
Europe		(.2	)		(.3	)		.1			.2
Mexico, Australia and other		.5			(1.4	)		7.7			(.1	)
	$	(.8	)	$	(1.8	)	$	3.8		$	(.7	)

	Three Months Ended					Nine Months Ended
	September 30, 2021					September 30, 2021
($ in millions)	PROVISION FOR LOSSES ON RECEIVABLES			NET CHARGE- OFFS		PROVISION FOR LOSSES ON RECEIVABLES			NET CHARGE- OFFS
U.S. and Canada	$	(.6	)	$	.9	$	(.2	)	$	1.5
Europe		(.8	)		.2		(.6	)		1.3
Mexico, Australia and other		1.4			1.1		4.0			3.9
				$	2.2	$	3.2		$	6.7

The provision for losses on receivables was $(.8) million in the third quarter of 2022 compared to nil in 2021, and in the first nine months, the provision for losses on receivables was $3.8 million in 2022 compared to $3.2 million in 2021. The decrease in provision for losses in the third quarter of 2022 reflects improved portfolio performance in North America and Europe. The increase in provision for losses in the first nine months was mainly driven by portfolio growth and higher past due balances in Brasil, partially offset by improved portfolio performance in North America and Europe.

The Company modifies loans and finance leases as a normal part of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification. When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts the Company considers likely to perform under the modified terms. When the Company modifies a loan or finance lease for credit reasons and grants a concession, the modification is classified as a troubled debt restructuring (TDR).  

The post-modification balances of accounts modified during the nine months ended September 30, 2022 and 2021 are summarized below:

	2022					2021
($ in millions)	AMORTIZED COST BASIS		% OF TOTAL PORTFOLIO*			AMORTIZED COST BASIS		% OF TOTAL PORTFOLIO*
Commercial	$	158.3		2.1	%	$	161.4		2.1	%
Insignificant delay		60.8		.8	%		53.1		.7	%
Credit – no concession		46.3		.6	%		51.5		.7	%
Credit – TDR		9.7		.1	%		6.7		.1	%
	$	275.1		3.6	%	$	272.7		3.6	%

* Amortized cost basis immediately after modification as a percentage of ending retail portfolio, on an annualized basis.

During the first nine months of 2022, total modification activity of $275.1 million was comparable to $272.7 million for the same period last year.

- 45 -

The following table summarizes the Company’s 30+ days past due accounts:

	September 30 2022			December 31 2021			September 30 2021
Percentage of retail loan and lease accounts 30+ days past due:
U.S. and Canada		.1	%
Europe		.4	%		.4	%		.5	%
Mexico, Australia and other		1.7	%		1.2	%		1.2	%
Worldwide		.4	%		.3	%		.3	%

Accounts 30+ days past due was .4% at September 30, 2022 compared to .3% at December 31, 2021. The Company continues to focus on maintaining low past due balances.

When the Company modifies a 30+ days past due account, the customer is then generally considered current under the revised contractual terms. The Company modified $16.2 million of accounts worldwide during the third quarter of 2022, $.4 million during the fourth quarter of 2021 and $.2 million during the third quarter of 2021 that were 30+ days past due and became current at the time of modification. Had these accounts not been modified and continued to not make payments, the pro forma percentage of retail loan and lease accounts 30+ days past due would have been as follows:

	September 30 2022			December 31 2021			September 30 2021
Pro forma percentage of retail loan and lease accounts 30+ days past due:
U.S. and Canada		.1	%
Europe		.4	%		.4	%		.5	%
Mexico, Australia and other		1.9	%		1.2	%		1.2	%
Worldwide		.5	%		.3	%		.3	%

Modifications of accounts in prior quarters that were more than 30 days past due at the time of modification are included in past dues if they were not performing under the modified terms at September 30, 2022, December 31, 2021 and September 30, 2021. The effect on the allowance for credit losses from such modifications was not significant at September 30, 2022, December 31, 2021 and September 30, 2021.

The Company’s annualized pre-tax return on average assets for Financial Services increased to 3.6% in the third quarter of 2022 from 3.1% in the same period of 2021, and in the first nine months, increased to 3.7% in 2022 from 2.6% in 2021. The increase in both periods was primarily driven by improved used truck results and higher finance and lease margins.

Other

Other includes the winch business as well as sales, income and expenses not attributable to a reportable segment. Other also includes non-service cost components of pension expense and a portion of corporate expense. Other sales represent less than 1% of consolidated net sales and revenues for both the third quarter and first nine months of 2022 and 2021. Other SG&A increased to $24.1 million for the third quarter of 2022 from $14.9 million for the third quarter of 2021 and increased to $66.6 million for the first nine months of 2022 from $47.3 million for the first nine months of 2021. The increase in both periods was primarily due to higher salaries and related expenses.

For the third quarter, Other income before income taxes increased to $8.0 million from $3.0 million in 2021 primarily due to lower professional fees and lower non-service components of pension expenses, partially offset by higher salaries and related expenses. For the first nine months, Other income before taxes increased to $14.9 million from $13.9 million in 2021 primarily due to lower non-service components of pension expenses, partially offset by higher salaries and related expenses.

Investment income for the third quarter increased to $21.4 million in 2022 from $1.6 million in 2021. For the first nine months, investment income increased to $24.3 million in 2022 from $11.5 million in 2021. For the third quarter and first nine months of 2022 investment income from marketable debt securities was higher compared to the same periods in 2021 due to higher average cash balances in North America and South America and higher investment yields in all regions.

- 46 -

Income Taxes

The effective tax rate for the third quarter of 2022 was 21.5% compared to 21.9% for the third quarter of 2021. The effective tax rate for the first nine months of 2022 was 21.8% compared to 22.4% for the first nine months of 2021. The lower effective tax rate in the third quarter and first nine months of 2022 was primarily due to the change in mix of income generated in jurisdictions with lower tax rates in 2022 as compared to 2021.

	Three Months Ended						Nine Months Ended
	September 30						September 30
($ in millions)		2022			2021			2022			2021
Domestic income before taxes	$	623.7		$	252.7		$	1,666.1		$	1,032.3
Foreign income before taxes		356.0			234.5			1,007.1			703.5
Total income before taxes	$	979.7		$	487.2		$	2,673.2		$	1,735.8
Domestic pre-tax return on revenues		15.3	%		9.1	%		14.6	%		11.4	%
Foreign pre-tax return on revenues		11.9	%		9.9	%		10.9	%		9.0	%
Total pre-tax return on revenues		13.9	%		9.5	%		12.9	%		10.3	%

For the third quarter and first nine months of 2022, both domestic and foreign income before income taxes and pre-tax return on revenues increased primarily due to the improved results from Truck, Parts and Financial Services operations.

LIQUIDITY AND CAPITAL RESOURCES:

	September 30		December 31
($ in millions)		2022		2021
Cash and cash equivalents	$	3,323.5	$	3,428.3
Marketable securities		1,544.2		1,559.4
	$	4,867.7	$	4,987.7

The Company’s total cash and marketable securities at September 30, 2022 decreased $120.0 million from the balances at December 31, 2021. Total cash and marketable securities are primarily intended to provide liquidity while preserving capital.

The change in cash and cash equivalents is summarized below:

($ in millions)
Nine Months Ended September 30,		2022		2021
Operating activities:
Net income	$	2,090.3		$	1,346.8
Net income items not affecting cash		402.2			455.6
Changes in operating assets and liabilities, net		(714.3	)		(652.2	)
Net cash provided by operating activities		1,778.2			1,150.2
Net cash used in investing activities		(1,318.5	)		(1,025.4	)
Net cash used in financing activities		(418.9	)		(1,389.9	)
Effect of exchange rate changes on cash and cash equivalents		(145.6	)		(46.7	)
Net decrease in cash and cash equivalents		(104.8	)		(1,311.8	)
Cash and cash equivalents at beginning of period		3,428.3			3,539.6
Cash and cash equivalents at end of period	$	3,323.5		$	2,227.8

Operating activities: Cash provided by operations increased by $628.0 million to $1,778.2 million in the first nine months of 2022 from $1,150.2 million in 2021. Higher operating cash flows reflect lower cash usage of $825.7 million for inventories, higher net income of $743.5 million and lower cash outflow of $430.2 million for accounts payable and accrued expenses as purchases of goods and services exceeded payments. The higher operating cash flows were partially offset by $1,165.5 million in wholesale receivables in the Financial Services segment primarily due to increasing wholesale receivables, and lower cash receipts from trade and other receivables of $252.5 million.

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Investing activities: Cash used in investing activities increased by $293.1 million to $1,318.5 million in the first nine months of 2022 from $1,025.4 million in 2021. Higher net cash used in investing activities reflects higher net originations of loans and financing leases of $238.9 million and lower proceeds from asset disposals of $174.8 million. The higher net cash usage was partially offset by fewer acquisitions of equipment for operating leases of $102.4 million.

Financing activities: Cash used in financing activities decreased by $971.0 to $418.9 million in the first nine months of 2022 from $1,389.9 in 2021. In the first nine months of 2022, cash provided by net borrowing activities in 2022 was $437.3 million, $1,265.9 million higher than the cash used by net borrowing activities of $828.6 million in 2021. The Company paid $875.9 million in dividends in 2022 compared to $589.9 million in 2021 due to a higher extra dividend paid in January 2022.

Credit Lines and Other

The Company has line of credit arrangements of $3.66 billion, of which $3.36 billion were unused at September 30, 2022. Included in these arrangements are $3.00 billion of committed bank facilities, of which $1.00 billion expires in June 2023, $1.00 billion expires in June 2025 and $1.00 billion expires in June 2027. The Company intends to extend or replace these credit facilities on or before expiration to maintain facilities of similar amounts and duration. These credit facilities are maintained primarily to provide backup liquidity for commercial paper borrowings and maturing medium-term notes. There were no borrowings under the committed bank facilities for the nine months ended September 30, 2022.

On December 4, 2018, PACCAR’s Board of Directors approved the repurchase of up to $500.0 million of the Company’s outstanding common stock. As of September 30, 2022, the Company has repurchased $110.0 million of shares under this plan. There were no repurchases made under this plan during the third quarter of 2022.

Truck, Parts and Other

The Company provides funding for working capital, capital expenditures, R&D, dividends, stock repurchases and other business initiatives and commitments primarily from cash provided by operations. Management expects this method of funding to continue in the future.

Investments for manufacturing property, plant and equipment in the first nine months of 2022 were $339.4 million compared to $336.5 million for the same period of 2021. Over the past decade, the Company’s combined investments in worldwide capital projects and R&D totaled $7.22 billion and have significantly increased the operating capacity and efficiency of its facilities and enhanced the quality and operating efficiency of the Company’s premium products.

In 2022, total capital investments for PACCAR are expected to be $475 to $500 million and R&D is expected to be $330 to $340 million. In 2023, capital investments are projected to be $525 to $575 million and R&D is expected to be $350 to $400 million. The Company is increasing its investment in clean diesel and electric powertrain technologies, autonomous systems, connected vehicle services, next-generation manufacturing and parts distribution capabilities.

Financial Services

The Company funds its financial services activities primarily from collections on existing finance receivables and borrowings in the capital markets. The primary sources of borrowings in the capital markets are commercial paper and medium-term notes issued in the public markets and, to a lesser extent, bank loans.

In November 2021, the Company’s U.S. finance subsidiary, PACCAR Financial Corp. (PFC), filed a shelf registration under the Securities Act of 1933. The total amount of medium-term notes outstanding for PFC as of September 30, 2022 was $5.70 billion. In October 2022 PFC issued $300.0 million of medium-term notes under this registration. The registration expires in November 2024 and does not limit the principal amount of debt securities that may be issued during that period.

As of September 30, 2022, the Company’s European finance subsidiary, PACCAR Financial Europe, had €1.62 billion available for issuance under a €2.50 billion medium-term note program listed on the Euro MTF Market of the Luxembourg Stock Exchange. This program has been renewed through the filing of a new listing, which expires in July 2023.

In August 2021, PACCAR Financial Mexico registered a 10.00 billion Mexican peso program with the Comision Nacional Bancaria y de Valores to issue medium-term notes and commercial paper. The registration expires in August 2026 and limits the amount of commercial paper (up to one year) to 5.00 billion Mexican pesos. At September 30, 2022, 9.07 billion Mexican pesos were available for issuance.

In August 2018, the Company’s Australian subsidiary, PACCAR Financial Pty. Ltd. (PFPL), established a medium-term note program. The program does not limit the principal amount of debt securities that may be issued under the program. The total amount of medium-term notes outstanding for PFPL as of September 30, 2022 was 700.0 million Australian dollars.

- 48 -

In May 2021, the Company’s Canadian subsidiary, PACCAR Financial Ltd. (PFL Canada), established a medium-term note program.  The program does not limit the principal amount of debt securities that may be issued under the program. The total amount of medium-term notes outstanding for PFL Canada as of September 30, 2022 was 150.0 million Canadian dollars.

The Company believes its cash balances and investments, collections on existing finance receivables, committed bank facilities and current investment-grade credit ratings of A+/A1 will continue to provide it with sufficient resources and access to capital markets at competitive interest rates and therefore contribute to the Company maintaining its liquidity and financial stability. In the event of a decrease in the Company’s credit ratings or a disruption in the financial markets, the Company may not be able to refinance its maturing debt in the financial markets. In such circumstances, the Company would be exposed to liquidity risk to the degree that the timing of debt maturities differs from the timing of receivable collections from customers. The Company believes its various sources of liquidity, including committed bank facilities, would continue to provide it with sufficient funding resources to service its maturing debt obligations.

FORWARD-LOOKING STATEMENTS:

This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to future results of operations or financial position and any other statement that does not relate to any historical or current fact. Such statements are based on currently available operating, financial and other information and are subject to risks and uncertainties that may affect actual results. Risks and uncertainties include, but are not limited to: a significant decline in industry sales; competitive pressures; reduced market share; reduced availability of or higher prices for fuel; increased safety, emissions or other regulations or tariffs resulting in higher costs and/or sales restrictions; currency or commodity price fluctuations; lower used truck prices; insufficient or under-utilization of manufacturing capacity; supplier interruptions; insufficient liquidity in the capital markets; fluctuations in interest rates; changes in the levels of the Financial Services segment new business volume due to unit fluctuations in new PACCAR truck sales or reduced market shares; changes affecting the profitability of truck owners and operators; price changes impacting truck sales prices and residual values; insufficient supplier capacity or access to raw materials and components, including semiconductors; labor disruptions; shortages of commercial truck drivers; increased warranty costs; pandemics; climate-related risks; global conflicts; litigation, including EC settlement-related claims; or legislative and governmental regulations. A more detailed description of these and other risks is included under the headings Part I, Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2021 and in Part II, Item 1, “Legal Proceedings” and Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There were no material changes in the Company’s market risk during the nine months ended September 30, 2022. For additional information, refer to Item 7A as presented in the 2021 Annual Report on Form 10‑K.

ITEM 4. CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Principal Executive Officer and Principal Financial Officer, conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the period covered by this report. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

There have been no changes in the Company’s internal controls over financial reporting that occurred during the fiscal quarter covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II – OTHER INFORMATION

For Items 3, 4 and 5, there was no reportable information for the nine months ended September 30, 2022.

ITEM 1.LEGAL PROCEEDINGS

Refer to Note M – “Commitments and Contingencies” in the Notes to Consolidated Financial Statements (Part I, Item 1) for discussion on litigation matters, which is incorporated by reference herein.

ITEM 1A.RISK FACTORS

For information regarding risk factors, refer to Part I, Item 1A as presented in the 2021 Annual Report on Form 10-K. There have been no material changes in the Company’s risk factors during the three months ended September 30, 2022, except for the following:

Conflict in Ukraine

In accordance with international sanctions, the Company has suspended truck and parts sales to Russia and Belarus. The conflict has affected energy supplies in Europe. If the availability of energy in Europe is severely constrained, truck delivery volumes could be impacted. The Company continues to monitor the situation closely. The conflict has not yet had a significant impact on the results of operations or cash flows of the Company. The potential impact on the Company’s business will depend on future developments, including the severity and duration of the conflict and its effect on European and global economic conditions.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

For Items 2(a) and (b), there was no reportable information for the three months ended September 30, 2022.

(c) Issuer purchases of equity securities.

On December 4, 2018, PACCAR’s Board of Directors approved the repurchase of up to $500.0 million of the Company’s outstanding common stock. As of September 30, 2022, the Company has repurchased $110.0 million of shares under this plan. There were no repurchases made under this plan during the third quarter of 2022.

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ITEM 6. EXHIBITS

Any exhibits filed herewith are listed in the accompanying index to exhibits.

INDEX TO EXHIBITS

Exhibit Number	Exhibit Description		Form	Date of First Filing	Exhibit Number	File Number
(3)  (i)		Articles of Incorporation:
		Amended and Restated Certificate of Incorporation of PACCAR Inc	8-K	May 4, 2018	3(i)	001-14817
		Certificate of Amendment of the Amended and Restated Certificate of Incorporation of PACCAR Inc	8-K	April 24, 2020	3(i)	001-14817
		Certificate of Amendment of the Amended and Restated Certificate of Incorporation of PACCAR Inc	8-K	April 29, 2022	3(i)	001-14817
(ii)		Bylaws:
		Seventh Amended and Restated Bylaws of PACCAR Inc	8-K	July 26, 2022	3(ii)	001-14817
(4)		Instruments defining the rights of security holders, including indentures**:
	(a)	Indenture for Senior Debt Securities dated as of November 20, 2009 between PACCAR Financial Corp. and The Bank of New York Mellon Trust Company, N.A.	S-3	November 20, 2009	4.1	333-163273
	(b)	Forms of Medium-Term Note, Series O (PACCAR Financial Corp.)	S-3	November 5, 2015	4.2 and 4.3	333-207838
	(c)	Forms of Medium-Term Note, Series P (PACCAR Financial Corp.)	S-3	November 2, 2018	4.2 and 4.3	333-228141
	(d)	Forms of Medium-Term Note, Series Q (PACCAR Financial Corp.)	S-3	November 1, 2021	4.3 and 4.4	333-260663
	(e)	Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Listing Particulars dated July 4, 2019	10-Q	October 30, 2019	4(i)	001-14817
	(f)	Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated May 29, 2020	10-Q	August 3, 2020	4(h)	001-14817
	(g)	Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated July 15, 2021	10-Q	August 2, 2021	4(g)	001-14817
	(h)	Terms and Conditions of the Notes applicable to the €2,500,000,000 Medium Term Note Programme of PACCAR Financial Europe B.V. set forth in the Information Memorandum dated July 13, 2022	10-Q	August 2, 2022	4(h)	001-14817
	(i)	Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934	10-K	February 19, 2020	4(j)	001-14817
	**	Pursuant to the Instructions to Exhibits, certain instruments defining the rights of holders of long-term debt securities of the Company and its wholly owned subsidiaries are not filed because the total amount of securities authorized under any such instrument does not exceed 10 percent of the Company’s total assets. The Company will file copies of such instruments upon request of the Commission.

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Exhibit Number	Exhibit Description		Form	Date of First Filing	Exhibit Number	File Number
(10)		Material Contracts:
	(a)	PACCAR Inc Amended and Restated Supplemental Retirement Plan	10-K	February 27, 2009	10(a)	001-14817
	(b)	Amended and Restated Deferred Compensation Plan	10-Q	May 10, 2012	10(b)	001-14817
	(c)	Deferred Incentive Compensation Plan (Amended and Restated as of December 31, 2004)	10-K	February 27, 2006	10(b)	001-14817
	(d)	Second Amended and Restated PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee Directors	DEF14A	March 14, 2014	Appendix A	001-14817
	(e)	PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee Directors, Form of Deferred Restricted Stock Unit Agreement for Non-Employee Directors	8-K	December 10, 2007	99.3	001-14817
	(f)	Amendment to Compensatory Arrangement with Non-Employee Directors	10-K	February 26, 2015	10(g)	001-14817
	(g)	PACCAR Inc Senior Executive Yearly Incentive Compensation Plan	10-K	February 19, 2020	10(g)	001-14817
	(h)	PACCAR Inc Long Term Incentive Plan	10-K	February 19, 2020	10(h)	001-14817
	(i)	Amendment One to PACCAR Inc Long Term Incentive Plan, Nonstatutory Stock Option Agreement and Form of Option Grant Agreement	10-Q	August 7, 2013	10(k)	001-14817
	(j)	PACCAR Inc Long Term Incentive Plan, 2018 Form of Restricted Stock Award Agreement	10-K	February 21, 2019	10(m)	001-14817
	(k)	PACCAR Inc Long Term Incentive Plan, Form of Restricted Stock Unit Agreement	10-K	February 21, 2019	10(n)	001-14817
	(l)	PACCAR Inc Savings Investment Plan, Amendment and Restatement effective September 1, 2016	10-Q	November 4, 2016	10(q)	001-14817
	(m)	Memorandum of Understanding, dated as of May 11, 2007, by and among PACCAR Engine Company, the State of Mississippi and certain state and local supporting governmental entities	8-K	May 16, 2007	10.1	001-14817
	(n)	Letter Waiver Dated as of July 22, 2008 amending the Memorandum of Understanding, dated as of May 11, 2007, by and among PACCAR Engine Company, the State of Mississippi and certain state and local supporting governmental entities	10-Q	October 27, 2008	10(o)	001-14817
	(o)	Second Amendment to Memorandum of Understanding dated as of September 26, 2013, by and among PACCAR Engine Company, the Mississippi Development Authority and the Mississippi Major Economic Impact Authority	10-Q	November 7, 2013	10(u)	001-14817
	(p)	Third Amendment to Memorandum of Understanding dated as of November 12, 2019, by and among PACCAR Engine Company, the Mississippi Development Authority and the Mississippi Major Economic Impact Authority	10-K	February 19, 2020	10(r)	001-14817
	(q)	Second Amended and Restated PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee Directors, Form of Amended Deferred Restricted Stock Unit Grant Agreement	10-K	February 26, 2015	10(t)	001-14817

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Exhibit Number	Exhibit Description		Form	Date of First Filing	Exhibit Number	File Number
	(r)	Second Amended and Restated PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee Directors, Form of Amended Restricted Stock Grant Agreement	10-K	February 26, 2015	10(u)	001-14817
(31)		Rule 13a-14(a)/15d-14(a) Certifications:
	(a)	Certification of Principal Executive Officer*
	(b)	Certification of Principal Financial Officer*
(32)		Section 1350 Certifications:
		Certification pursuant to rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. section 1350)*
(101.INS)		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
(101.SCH)		Inline XBRL Taxonomy Extension Schema Document*
(101.CAL)		Inline XBRL Taxonomy Extension Calculation Linkbase Document*
(101.DEF)		Inline XBRL Taxonomy Extension Definition Linkbase Document*
(101.LAB)		Inline XBRL Taxonomy Extension Label Linkbase Document*
(101.PRE)		Inline XBRL Taxonomy Extension Presentation Linkbase Document*
(104)		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)*

* filed herewith

- 54 -

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			PACCAR Inc
			(Registrant)
Date	October 28, 2022	By	/s/ M. T. Barkley
			M. T. Barkley
			Senior Vice President and Controller
			(Authorized Officer and Chief Accounting Officer)

- 55 -

EX-31.(A)

EXHIBIT 31(a)

CERTIFICATION

I, R. Preston Feight, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PACCAR Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):  

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date	October 28, 2022
		/s/ R. Preston Feight
		R. Preston Feight
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.(B)

EXHIBIT 31(b)

CERTIFICATION

I, Harrie C.A.M. Schippers, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PACCAR Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d‑15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a‑15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date	October 28, 2022
		/s/ Harrie C.A.M. Schippers
		Harrie C.A.M. Schippers
		President and Chief Financial Officer
		(Principal Financial Officer)

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of PACCAR Inc (the “Company”) on Form 10-Q for the quarter ended September 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify, pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. section 1350), that to the best of our knowledge and belief:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date	October 28, 2022	By	/s/ R. Preston Feight
			R. Preston Feight
			Chief Executive Officer
			PACCAR Inc
			(Principal Executive Officer)
		By	/s/ Harrie C.A.M. Schippers
			Harrie C.A.M. Schippers
			President and Chief Financial Officer
			PACCAR Inc
			(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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	Sep. 30, 2022	Oct. 25, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Registrant Name	PACCAR Inc
Entity Central Index Key	0000075362
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		347,767,575
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity File Number	001-14817
Entity Tax Identification Number	91-0351110
Entity Address, Address Line One	777 - 106th Ave. N.E.
Entity Address, City or Town	Bellevue
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98004
City Area Code	425
Local Phone Number	468-7400
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of Each Class	Common stock, $1 par value
Trading Symbol	PCAR
Name of Each Exchange on Which Registered	NASDAQ

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues	$ 7,058.9	$ 5,146.8	$ 20,690.2	$ 16,836.2
Cost of sales and revenues		4,176.2		13,525.3
Provision for losses on receivables			3.8	3.2
Investment income	21.4	1.6	24.3	11.5
Income before income taxes	979.7	487.2	2,673.2	1,735.8
Income taxes	210.3	106.7	582.9	389.0
Net Income	$ 769.4	$ 380.5	$ 2,090.3	$ 1,346.8
Net Income Per Share
Basic	$ 2.21	$ 1.09	$ 6.00	$ 3.87
Diluted	$ 2.21	$ 1.09	$ 5.99	$ 3.87
Weighted Average Number of Common Shares Outstanding
Basic	348.4	347.8	348.4	347.7
Diluted	348.9	348.3	348.9	348.4
Comprehensive Income	$ 488.0	$ 264.9	$ 1,618.3	$ 1,251.9
Truck, Parts and Other
Revenues	6,687.0	4,737.7	19,579.6	15,538.8
Cost of sales and revenues	5,689.3	4,176.2	16,785.8	13,525.3
Research and development	82.9	72.5	241.3	237.0
Selling, general and administrative	137.7	134.7	430.6	396.8
Interest and other (income), net	(35.0)	(11.2)	(89.4)	(41.6)
Costs and Expenses, Total	5,874.9	4,372.2	17,368.3	14,117.5
Income before income taxes	812.1	365.5	2,211.3	1,421.3
Financial Services
Revenues	371.9	409.1	1,110.6	1,297.4
Interest and fees	160.4	131.5	443.6	393.8
Operating lease, rental and other revenues	211.5	277.6	667.0	903.6
Interest and other borrowing expenses	55.8	35.3	142.0	114.9
Depreciation and other expenses	137.4	219.8	426.3	779.0
Selling, general and administrative	33.3	33.9	100.9	97.3
Provision for losses on receivables	(0.8)	0.0	3.8	3.2
Costs and Expenses, Total	225.7	289.0	673.0	994.4
Income before income taxes	$ 146.2	$ 120.1	$ 437.6	$ 303.0

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Inventories, net		$ 1,976.0
Total Assets	$ 30,623.6	29,509.4
Liabilities
Other liabilities		1,487.6
STOCKHOLDERS' EQUITY:
Preferred stock, no par value - authorized 1.0 million shares, none issued
Common stock, $1 par value - authorized 1.2 billion shares, issued 347.8 and 347.3 million shares	347.8	347.3
Additional paid-in capital	180.0	142.0
Treasury stock, at cost - .02 million and nil shares	(2.0)
Retained earnings	13,760.8	12,025.8
Accumulated other comprehensive loss	(1,393.1)	(921.1)
Total Stockholders' Equity	12,893.5	11,594.0
Liabilities and Equity, Total	30,623.6	29,509.4
Truck, Parts and Other
ASSETS
Cash and cash equivalents	3,218.7	3,253.6
Trade and other receivables, net (allowance for losses: 2022 - $.5, 2021 - $.6)	2,018.5	1,575.1
Marketable securities	1,544.2	1,559.4
Inventories, net	2,382.1	1,976.0
Other current assets	719.7	732.9
Total Truck, Parts and Other Current Assets	9,883.2	9,097.0
Equipment on operating leases, net	208.6	302.4
Property, plant and equipment, net	3,299.4	3,398.1
Other noncurrent assets, net	1,307.6	1,293.0
Total Assets	14,698.8	14,090.5
Liabilities
Accounts payable, accrued expenses and other	4,381.8	3,930.9
Dividend payable		521.1
Total Truck, Parts and Other Current Liabilities	4,381.8	4,452.0
Residual value guarantees and deferred revenues	227.0	329.1
Accounts payable, accrued expenses and other	4,381.8
Other liabilities	1,363.0	1,487.6
Total Liabilities	5,971.8	6,268.7
STOCKHOLDERS' EQUITY:
Retained earnings	13,760.8
Financial Services
ASSETS
Cash and cash equivalents	104.8	174.7
Finance and other receivables, net (allowance for losses: 2022 -$119.6, 2021 - $116.9)	12,549.2	11,920.8
Equipment on operating leases, net	2,545.9	2,886.5
Other assets	724.9	436.9
Total Assets	15,924.8	15,418.9
Liabilities
Accounts payable, accrued expenses and other	792.7	624.5
Commercial paper and bank loans	3,295.6	3,303.0
Term notes	7,082.3	7,128.8
Deferred taxes and other liabilities	587.7	590.4
Total Liabilities	$ 11,758.3	$ 11,646.7

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Preferred stock, no par value	$ 0	$ 0
Preferred stock, authorized	1,000,000.0	1,000,000.0
Preferred stock, issued	0	0
Common stock, par value	$ 1	$ 1
Common stock, authorized	1,200,000,000	1,200,000,000
Common stock, issued	347,800,000	347,300,000
Treasury stock, shares	20,000.00
Truck, Parts and Other
Allowance for losses	$ 5.0	$ 6.0
Financial Services
Allowance for credit losses	$ 117.9	$ 116.9

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
OPERATING ACTIVITIES:
Net Income	$ 2,090.3	$ 1,346.8
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization, Property, plant and equipment	239.7	197.5
Depreciation and amortization, Equipment on operating leases and other	345.9	494.8
Provision for losses on financial services receivables	3.8	3.2
Other, net	(187.2)	(239.9)
Pension contributions	(34.3)	(19.2)
Change in operating assets and liabilities:
Trade and other receivables	(561.5)	(309.0)
Wholesale receivables on new trucks	(577.8)	587.7
Inventories	(523.5)	(1,349.2)
Accounts payable and accrued expenses	937.0	506.8
Income taxes, warranty and other	45.8	(69.3)
Net Cash Provided by Operating Activities	1,778.2	1,150.2
INVESTING ACTIVITIES:
Originations of retail loans and finance leases	(3,559.5)	(3,379.3)
Collections on retail loans and finance leases	2,932.3	2,991.0
Net (increase) decrease in wholesale receivables on used equipment	(15.2)	12.5
Purchases of marketable debt securities	(723.8)	(693.8)
Proceeds from sales and maturities of marketable debt securities	591.5	542.7
Payments for property, plant and equipment	(393.7)	(381.3)
Acquisitions of equipment for operating leases	(688.1)	(790.5)
Proceeds from asset disposals	511.3	686.1
Other, net	26.7	(12.8)
Net Cash Used in Investing Activities	(1,318.5)	(1,025.4)
FINANCING ACTIVITIES:
Payments of cash dividends	(875.9)	(589.9)
Purchases of treasury stock	(2.0)	(1.5)
Proceeds from stock compensation transactions	21.7	30.1
Net increase (decrease) in commercial paper, short-term bank loans and other	227.3	(303.5)
Proceeds from term debt	2,302.7	1,802.1
Payments on term debt	(2,092.7)	(2,327.2)
Net Cash Used in Financing Activities	(418.9)	(1,389.9)
Effect of exchange rate changes on cash and cash equivalents	(145.6)	(46.7)
Net Decrease in Cash and Cash Equivalents	(104.8)	(1,311.8)
Cash and cash equivalents at beginning of period	3,428.3	3,539.6
Cash and cash equivalents at end of period	$ 3,323.5	$ 2,227.8

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Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions	Total	COMMON STOCK, $1 PAR VALUE:	ADDITIONAL PAID-IN CAPITAL:	TREASURY STOCK, AT COST:	RETAINED EARNINGS:	ACCUMULATED OTHER COMPREHENSIVE LOSS:
Beginning balance at Dec. 31, 2020		$ 346.6	$ 88.5		$ 11,148.5	$ (1,050.3)
Net income	$ 1,346.8				1,346.8
Purchases				$ (1.5)
Cash dividends declared on common stock					(347.8)
Stock compensation		0.6	43.3
Other comprehensive loss	(94.9)					(94.9)
Ending balance at Sep. 30, 2021	11,479.8	347.2	131.8	(1.5)	12,147.5	(1,145.2)
Beginning balance at Jun. 30, 2021		347.2	128.9	(1.4)	11,885.2	(1,029.6)
Net income	380.5				380.5
Purchases				(0.1)
Cash dividends declared on common stock					(118.2)
Stock compensation			2.9
Other comprehensive loss	(115.6)					(115.6)
Ending balance at Sep. 30, 2021	11,479.8	347.2	131.8	(1.5)	12,147.5	(1,145.2)
Beginning balance at Dec. 31, 2021	11,594.0	347.3	142.0		12,025.8	(921.1)
Net income	2,090.3				2,090.3
Purchases				(2.0)
Cash dividends declared on common stock					(355.3)
Stock compensation		0.5	38.0
Other comprehensive loss	(472.0)					(472.0)
Ending balance at Sep. 30, 2022	12,893.5	347.8	180.0	(2.0)	13,760.8	(1,393.1)
Beginning balance at Jun. 30, 2022		347.7	174.0	(1.9)	13,109.9	(1,111.7)
Net income	769.4				769.4
Purchases				(0.1)
Cash dividends declared on common stock					(118.5)
Stock compensation		0.1	6.0
Other comprehensive loss	(281.4)					(281.4)
Ending balance at Sep. 30, 2022	$ 12,893.5	$ 347.8	$ 180.0	$ (2.0)	$ 13,760.8	$ (1,393.1)

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Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
RETAINED EARNINGS:
Cash dividends declared on common stock, per share	$ 0.34	$ 0.34	$ 1.02	$ 1.00

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Basis of Presentation

9 Months Ended

Sep. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

NOTE A - Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, refer to the consolidated financial statements and footnotes included in PACCAR Inc’s (PACCAR or the Company) Annual Report on Form 10‑K for the year ended December 31, 2021.

Earnings per Share: Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding, plus the effect of any participating securities. Diluted earnings per common share are computed assuming that all potentially dilutive securities are converted into common shares under the treasury stock method. The dilutive and antidilutive options are shown separately in the table below.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Additional shares		463,000		519,900		485,600		678,000
Antidilutive options		1,091,300		580,400		1,100,300		583,600

Change in Accounting: In the first quarter of 2022, the Company changed the method of accounting for its U.S. inventories from last-in-first-out (LIFO) to first-in-first-out (FIFO). Inventories valued using the LIFO method comprised 41% of consolidated inventories before deducting the LIFO reserve at December 31, 2021. The Company believes the FIFO method is preferable because it better matches cost with revenues, it results in a more consistent method to value inventory with its foreign subsidiaries and it improves comparability with industry peers. This change increased Retained Earnings by $143.3 million to $11,148.5 million at January 1, 2021. The effects of the change in accounting principle have been retrospectively applied to all periods presented:

The effect of the changes made to the Company’s Consolidated Statements of Comprehensive Income was as follows:

Three Months Ended September 30, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE			AS ADJUSTED
Truck, Parts and Other
Cost of sales and revenues	$	4,180.1	$	(3.9	)	$	4,176.2
Income Taxes		105.6		1.1			106.7
Net Income		377.7		2.8			380.5

Nine Months Ended September 30, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE			AS ADJUSTED
Truck, Parts and Other
Cost of sales and revenues	$	13,533.5	$	(8.2	)	$	13,525.3
Income Taxes		386.9		2.1			389.0
Net Income		1,340.7		6.1			1,346.8

The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet was as follows:

December 31, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE		AS ADJUSTED
Truck, Parts and Other
Inventories, net	$	1,768.3	$	207.7	$	1,976.0
Other liabilities		1,436.5		51.1		1,487.6
Retained earnings		11,869.2		156.6		12,025.8

The change in accounting policy did not materially affect basic or diluted net income per share or income before income taxes within the Truck, Parts and Other segments for the three and nine months ended September 30, 2021. There was no impact on total net cash provided by operating activities.

The following table compares the amounts currently reported to amounts that would have been reported under LIFO in the Consolidated Statements of Comprehensive Income.

Three Months Ended September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Cost of sales and revenues	$	5,689.3	$	5,699.1	$	(9.8	)
Income Taxes		210.3		207.9		2.4
Net Income		769.4		762.0		7.4
Net Income Per Share
Basic	$	2.21	$	2.19	$	.02
Diluted	$	2.21	$	2.18	$	.03

Nine Months Ended September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Cost of sales and revenues	$	16,785.8	$	16,821.5	$	(35.7	)
Income Taxes		582.9		574.1		8.8
Net Income		2,090.3		2,063.4		26.9
Net Income Per Share
Basic	$	6.00	$	5.92	$	.08
Diluted	$	5.99	$	5.91	$	.08

The effect of the change to income before income taxes within the Truck, Parts and Other segments for the three months and nine months ended September 30, 2022 would not be material. In addition, there would be no material effect on the Consolidated Statements of Cash Flows.

The following table compares the amounts currently reported to amounts that would have been reported under LIFO in the Consolidated Balance Sheet.

September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Inventories, net	$	2,382.1	$	2,138.7	$	243.4
Accounts payable, accrued expenses and other		4,381.8		4,321.9		59.9
Retained earnings		13,760.8		13,577.3		183.5

New Accounting Pronouncements: The Company adopted the following standards on January 1, 2022, which had no material impact on the Company’s consolidated financial statements.

STANDARD	DESCRIPTION
2021-05	Leases (Topic 842) - Lessors—Certain Leases with Variable Lease Payments
2021-10	Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance

The Financial Accounting Standards Board (FASB) also issued the following standards, which are not expected to have a material impact on the Company’s consolidated financial statements.

STANDARD	DESCRIPTION	EFFECTIVE DATE
2022-02*	Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures	January 1, 2023
2022-03*	Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions	January 1, 2024

*     The Company will adopt on the effective date.

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Sales and Revenues

9 Months Ended

Sep. 30, 2022

Sales And Revenues [Abstract]

Sales and Revenues

NOTE B – Sales and Revenues

Truck, Parts and Other

The Company enters into sales contracts with customers associated with purchases of the Company’s products and services including trucks, parts, product support, and other related services. Generally, the Company recognizes revenue for the amount of consideration it will receive for delivering a product or service to a customer. Revenue is recognized when the customer obtains control of the product or receives benefits of the service. The Company excludes sales taxes, value added taxes and other related taxes assessed by government agencies from revenue. There are no significant financing components included in product or services revenue since generally customers pay shortly after the products or services are transferred. In the Truck and Parts segment, when the Company grants extended payment terms on selected receivables and charges interest, interest income is recognized when earned.

The following table disaggregates Truck, Parts and Other revenues by major sources:  

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Truck
Truck sales	$	4,991.4	$	3,258.3	$	14,602.7	$	11,253.7
Revenues from extended warranties, operating leases and other		206.8		194.3		629.0		584.1
		5,198.2		3,452.6		15,231.7		11,837.8
Parts
Parts sales		1,429.3		1,226.1		4,171.9		3,528.1
Revenues from dealer services and other		42.2		34.1		123.2		104.1
		1,471.5		1,260.2		4,295.1		3,632.2
Winch sales and other		17.3		24.9		52.8		68.8
Truck, Parts and Other sales and revenues	$	6,687.0	$	4,737.7	$	19,579.6	$	15,538.8

The Company recognizes truck and parts sales as revenues when control of the products is transferred to customers which generally occurs upon shipment, except for certain truck sales which are subject to a residual value guarantee (RVG) by the Company. The standard payment term for trucks and aftermarket parts is typically within 30 days, but the Company may grant extended payment terms on selected receivables. The Company recognizes revenue for the invoice amount adjusted for estimated sales incentives and returns. Sales incentives and returns are estimated based on historical experience and are adjusted to current period revenue when the most likely amount of consideration the Company expects to receive changes or becomes fixed. Truck and parts sales include a standard product warranty which is included in cost of sales. The Company has elected to treat delivery services as a fulfillment activity with revenues recognized when the customer obtains control of the product. Delivery revenue is included in revenues and the related costs are included in cost of sales. As a practical expedient, the Company is not disclosing truck order backlog, as a significant majority of the backlog has a duration of less than one year.

Truck sales with RVGs that allow customers the option to return their truck are accounted for as a sale when the customer does not have an economic incentive to return the truck to the Company, or as an operating lease when the customer does have an economic incentive to return the truck. The estimate of customers’ economic incentive to return the trucks is based on an analysis of historical guaranteed buyback value and estimated market value. When truck sales with RVGs are accounted for as a sale, revenue is recognized when the truck is transferred to the customer less an amount for expected returns. Expected return rates are estimated by using a historical weighted average return rate over an eight-year period.

Aftermarket parts sales allow for returns which are estimated at the time of sale based on historical data. Parts dealer services and other revenues are recognized as services are performed.

The following table presents the balance sheet classification of the estimated value of the truck assets to be returned goods assets and the related return liabilities:

	September 30, 2022				December 31, 2021
	ASSETS		LIABILITIES		ASSETS		LIABILITIES
Trucks
Other current assets	$	177.8			$	255.7
Accounts payable, accrued expenses and other			$	180.5			$	264.0
Other noncurrent assets, net		290.8				403.6
Other liabilities				304.9				423.9
	$	468.6	$	485.4	$	659.3	$	687.9
Parts
Other current assets	$	82.0			$	72.9
Accounts payable, accrued expenses and other			$	193.5			$	172.1
	$	82.0	$	193.5	$	72.9	$	172.1

For contracts accounted for as a sale, the Company’s total commitment to acquire trucks at a guaranteed value was $934.3 at September 30, 2022.

Revenues from extended warranties, operating leases and other include optional extended warranty and repair and maintenance (R&M) service contracts which can be purchased for periods generally ranging up to five years. The Company defers revenue based on stand-alone observable selling prices when it receives payments in advance and generally recognizes the revenue on a straight-line basis over the warranty or R&M contract periods. See Note F, Product Support Liabilities, in the Notes to the Consolidated Financial Statements for further information. Also included are truck sales with an RVG accounted for as an operating lease. A liability is created for the residual value obligation with the remainder of the proceeds recorded as deferred revenue. The deferred revenue is recognized on a straight-line basis over the guarantee period, which typically ranges from three to five years. Deferred revenue related to trucks sold with an RVG was $52.7 at September 30, 2022. The Company expects to recognize approximately $7.6 of the remaining deferred revenue in 2022, $24.3 in 2023, $13.1 in 2024, $4.8 in 2025 and $2.9 in 2026. For the three and nine months ended September 30, 2022, total operating lease revenue from truck sales with RVGs was $29.3 and $79.2, respectively compared to $24.9 and $75.2 for the three and nine months ended September 30, 2021. The Company’s total commitment to acquire trucks at a guaranteed value for contracts accounted for as a lease was $174.3 at September 30, 2022.

Revenue from winch sales and other is primarily derived from the industrial winch business. Winch sales are recognized when the product is transferred to a customer, which generally occurs upon shipment. Also within this category are other revenues not attributable to a reportable segment.

Financial Services

The Company’s Financial Services segment products include loans to customers collateralized by the vehicles being financed, finance leases for retail customers and dealers, dealer wholesale financing which includes floating-rate wholesale loans to PACCAR dealers for new and used trucks, and operating leases which include rentals on Company owned equipment. Interest income from finance and other receivables is recognized using the interest method. Certain loan origination costs are deferred and amortized to interest income over the expected life of the contracts using the straight-line method which approximates the interest method.

Operating lease rental revenue is recognized on a straight-line basis over the term of the lease. Customer contracts may include additional services such as excess mileage, repair and maintenance and other services on which revenue is recognized when earned. The Company’s full-service lease arrangements bundle these additional services. Rents for full-service lease contracts are allocated between lease and non-lease components based on the relative stand-alone price of each component. Taxes, such as sales and use and value added, which are collected by the Company from a customer, are excluded from the measurement of lease income and expenses.    

Recognition of interest income and rental revenue is suspended (put on non-accrual status) when the receivable becomes more than 90 days past the contractual due date or earlier if some other event causes the Company to determine that collection is not probable. Accordingly, no finance receivables more than 90 days past due were accruing interest at September 30, 2022 or December 31, 2021. Recognition is resumed if the receivable becomes current by the payment of all amounts due under the terms of the existing contract and collection of remaining amounts is considered probable (if not contractually modified) or if the customer makes scheduled payments for three months and collection of remaining amounts is considered probable (if contractually modified). Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms.

Finance leases are secured by the trucks and related equipment being leased and the lease terms generally range from three to five years depending on the type and use of the equipment. The lessee is required to either purchase the equipment or guarantee to the Company a stated residual value upon the disposition of the equipment at the end of the finance lease term.

Operating lease terms generally range from three to five years. At the end of the operating lease term, the lessee has the option to return the equipment to the Company or purchase the equipment at its fair market value.  

The Company determines its estimate of the residual value of leased vehicles by considering the length of the lease term, the truck model, the expected usage of the truck and anticipated market demand. If the sales price of the truck at the end of the agreement differs from the Company’s estimated residual value, a gain or loss will result. Future market conditions, changes in government regulations and other factors outside the Company’s control could impact the ultimate sales price of trucks returned under these contracts. Residual values are reviewed regularly and adjusted if market conditions warrant.

The following table summarizes Financial Services lease revenues by lease type:  

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Finance lease revenues	$	46.6	$	46.7	$	134.5	$	142.8
Operating lease revenues		192.4		206.4		595.7		627.9
Total lease revenues	$	239.0	$	253.1	$	730.2	$	770.7

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Investments in Marketable Securities

9 Months Ended

Sep. 30, 2022

Investments Debt And Equity Securities [Abstract]

Investments in Marketable Securities

NOTE C - Investments in Marketable Securities

Debt Securities

The Company's investments in marketable debt securities are classified as available-for-sale. These investments are stated at fair value and may include an allowance for credit losses. Changes in the allowance for credit losses are recognized in the current period earnings and any unrealized gains or losses, net of tax, are included as a component of accumulated other comprehensive income (loss) (AOCI).

The Company utilizes third-party pricing services for all of its marketable debt security valuations. The Company reviews the pricing methodology used by the third‑party pricing services, including the manner employed to collect market information. On a quarterly basis, the Company also performs review and validation procedures on the pricing information received from the third‑party providers. These procedures help ensure the fair value information used by the Company is determined in accordance with applicable accounting guidance.

The Company evaluates its investment in marketable debt securities at the end of each reporting period to determine if a decline in fair value is the result of credit losses or unrealized losses. In assessing credit losses, the Company considers the collectability of principal and interest payments by monitoring changes to issuers’ credit ratings, specific credit events associated with individual issuers as well as the credit ratings of any financial guarantor. The Company considers its intent for selling the security and whether it is more likely than not the Company will be able to hold the security until the recovery of any credit losses and unrealized losses. Charges against the allowance for credit losses occur when a security with credit losses is sold or the Company no longer intends to hold that security.

Equity Securities

Marketable equity securities are traded on active exchanges and are measured at fair value. The realized and unrealized gains (losses) are recognized in investment income.

Marketable securities at September 30, 2022 and December 31, 2021 consisted of the following:

			UNREALIZED	UNREALIZED		FAIR
At September 30, 2022	COST		GAINS	LOSSES		VALUE
Marketable debt securities
U.S. tax-exempt securities	$	455.5		$	12.6	$	442.9
U.S. taxable municipal / non-U.S. provincial bonds		187.5			11.4		176.1
U.S. corporate securities		249.3			13.8		235.5
U.S. government and agency securities		112.3			3.3		109.0
Non-U.S. corporate securities		428.0			19.7		408.3
Non-U.S. government securities		73.1			3.0		70.1
Other debt securities		104.8			5.0		99.8
Marketable equity securities		15.4			12.9		2.5
Total marketable securities	$	1,625.9		$	81.7	$	1,544.2

			UNREALIZED		UNREALIZED		FAIR
At December 31, 2021	COST		GAINS		LOSSES		VALUE
Marketable debt securities
U.S. tax-exempt securities	$	431.4	$	1.5	$	.4	$	432.5
U.S. taxable municipal / non-U.S. provincial bonds		192.2		.6		1.2		191.6
U.S. corporate securities		208.3		.6		1.5		207.4
U.S. government and agency securities		95.9		.6		.1		96.4
Non-U.S. corporate securities		443.9		1.4		2.5		442.8
Non-U.S. government securities		75.2		.1		.3		75.0
Other debt securities		100.4		.3		.7		100.0
Marketable equity securities		15.4		1.3		3.0		13.7
Total marketable securities	$	1,562.7	$	6.4	$	9.7	$	1,559.4

The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Amortization, accretion, interest and dividend income and realized gains and losses are included in investment income. The cost of securities sold is based on the specific identification method. Gross realized gains were $.5 and $1.6 and gross realized losses were $1.5 and $.1 for the nine months periods ended September 30, 2022 and 2021, respectively.

Marketable debt securities with continuous unrealized losses and their related fair values were as follows:

	September 30, 2022				December 31, 2021
	LESS THAN		TWELVE MONTHS		LESS THAN		TWELVE MONTHS
	TWELVE MONTHS		OR GREATER		TWELVE MONTHS		OR GREATER
Fair value	$	1,231.6	$	281.0	$	911.2	$	1.3
Unrealized losses		47.4		21.4		6.7

The unrealized losses on marketable debt securities above were due to higher yields on certain securities. The Company did not identify any indicators of a credit loss in its assessments. Accordingly, no allowance for credit losses was recorded at September 30, 2022 and December 31, 2021. The Company does not currently intend, and it is more likely than not that it will not be required to sell the investment securities before recovery of the unrealized losses. The Company expects that the contractual principal and interest will be received on the investment securities.

Contractual maturities of marketable debt securities at September 30, 2022 were as follows:

	AMORTIZED		FAIR
	COST		VALUE
Within one year	$	448.4	$	442.4
One to five years		1,139.6		1,078.6
Six to ten years		9.0		8.9
More than ten years		13.5		11.8
	$	1,610.5	$	1,541.7

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Inventories

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Inventories

NOTE D - Inventories

Inventories are stated at the lower of cost or market. Cost of inventories is determined principally by the first-in, first-out (FIFO) method.

Inventories include the following:

	September 30		December 31
	2022		2021
Finished products	$	826.5	$	676.0
Work in process and raw materials		1,555.6		1,300.0
	$	2,382.1	$	1,976.0

In the first quarter of 2022, the Company changed the method of accounting for its U.S. inventories from last-in-first-out (LIFO) to first-in-first-out (FIFO) and all prior periods have been retrospectively applied. See Note A - Basis of Presentation of this Quarterly Report on Form 10-Q.

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Finance and Other Receivables

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Finance and Other Receivables

NOTE E - Finance and Other Receivables

Finance and other receivables include the following:

	September 30			December 31
	2022			2021
Loans	$	6,750.4		$	6,424.7
Finance leases		3,472.4			3,620.6
Dealer wholesale financing		2,307.8			1,865.8
Operating lease receivables and other		136.5			126.6
		12,667.1			12,037.7
Less allowance for losses:
Loans and leases		(111.3	)		(111.5	)
Dealer wholesale financing		(3.5	)		(3.3	)
Operating lease receivables and other		(3.1	)		(2.1	)
	$	12,549.2		$	11,920.8

Included in Finance and other receivables, net on the Consolidated Balance Sheets is accrued interest receivable (net of allowance for credit losses) of $44.3 and $27.7 as of September 30, 2022 and December 31, 2021, respectively. The net activity of dealer direct loans and dealer wholesale financing on new trucks is shown in the operating section of the Condensed Consolidated Statements of Cash Flows since those receivables finance the sale of Company inventory.

Allowance for Credit Losses

The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list.  

The Company modifies loans and finance leases in the normal course of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification.  

When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies a loan or finance lease for credit reasons and grants a concession, the modification is classified as a troubled debt restructuring (TDR). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs.

On average, modifications extended contractual terms by approximately three months in 2022 and four months in 2021, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2022 and December 31, 2021.

The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over three to five years, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves.

The Company individually evaluates certain finance receivables for impairment. Finance receivables that are evaluated individually for impairment consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. A finance receivable is impaired if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. In addition, all retail loans and leases which have been classified as TDRs and all customer accounts over 90 days past due are considered impaired. Generally, impaired accounts are on non-accrual status. Impaired accounts classified as TDRs which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments.

Impaired receivables are generally considered collateral dependent. Large balance retail and all wholesale impaired receivables are individually evaluated to determine the appropriate reserve for losses. The determination of reserves for large balance impaired receivables considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s amortized cost basis, no reserve is recorded. Small balance impaired receivables with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below.  

The Company evaluates finance receivables that are not individually impaired and share similar risk characteristics on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss data provides relevant information of expected credit losses. The historical information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse.

The Company has developed a range of loss estimates for each of its country portfolios based on historical experience, taking into account loss frequency and severity in both strong and weak truck market conditions. A projection is made of the range of estimated credit losses inherent in the portfolio from which an amount is determined based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and markets in which the Company conducts business. The Company utilizes economic forecasts from third party sources and determines expected losses based on historical experience under similar market conditions. After determining the appropriate level of the allowance for credit losses, a provision for losses on finance receivables is charged to income as necessary to reflect management’s estimate of expected credit losses, net of recoveries, inherent in the portfolio.

In determining the fair value of the collateral, the Company uses a pricing matrix and categorizes the fair value as Level 2 in the hierarchy of fair value measurement. The pricing matrix is reviewed quarterly and updated as appropriate. The pricing matrix considers the make, model and year of the equipment as well as recent sales prices of comparable equipment sold individually, which is the lowest unit of account, through wholesale channels to the Company’s dealers (principal market). The fair value of the collateral also considers the overall condition of the equipment.

Accounts are charged off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost basis.

For the following credit quality disclosures, finance receivables are classified into two portfolio segments, wholesale and retail. The retail portfolio is further segmented into dealer retail and customer retail. The dealer wholesale segment consists of truck inventory financing to PACCAR dealers. The dealer retail segment consists of loans and leases to participating dealers and franchises that use the proceeds to fund customers’ acquisition of commercial vehicles and related equipment. The customer retail segment consists of loans and leases directly to customers for the acquisition of commercial vehicles and related equipment. Customer retail receivables are further segregated between fleet and owner/operator classes. The fleet class consists of customer retail accounts operating five or more trucks. All other customer retail accounts are considered owner/operator. These two classes have similar measurement attributes, risk characteristics and common methods to monitor and assess credit risk.    

The allowance for credit losses is summarized as follows:

	2022
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	3.3		$	7.1		$	104.4		$	2.1		$	116.9
Provision for losses		.4			(3.3	)		8.1			(1.4	)		3.8
Charge-offs								(6.3	)		(.1	)		(6.4	)
Recoveries		.1						5.2			1.8			7.1
Currency translation and other		(.3	)					(3.9	)		.7			(3.5	)
Balance at September 30	$	3.5		$	3.8		$	107.5		$	3.1		$	117.9

	2021
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	3.4		$	8.4		$	112.0		$	3.2		$	127.0
Provision for losses		(1.0	)		(.7	)		3.5			1.4			3.2
Charge-offs								(9.7	)		(1.3	)		(11.0	)
Recoveries								4.1			.2			4.3
Currency translation and other								(1.7	)		(.1	)		(1.8	)
Balance at September 30	$	2.4		$	7.7		$	108.2		$	3.4		$	121.7

* Operating leases and other trade receivables.

Credit Quality

The Company's customers are principally concentrated in the transportation industry in North America, Europe, Australia and Brasil. The Company’s portfolio assets are diversified over a large number of customers and dealers with no single customer or dealer balances representing over 5% of the total portfolio assets. The Company retains as collateral a security interest in the related equipment.

At the inception of each contract, the Company considers the credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit-rating agency ratings, loan-to-value ratios and other internal metrics. On an ongoing basis, the Company monitors credit quality based on past due status and collection experience as there is a meaningful correlation between the past due status of customers and the risk of loss.

The Company has three credit quality indicators: performing, watch and at-risk. Performing accounts pay in accordance with the contractual terms and are not considered high-risk. Watch accounts include accounts 31 to 90 days past due and large accounts that are performing but are considered to be high‑risk. Watch accounts are not impaired. At-risk accounts are accounts that are impaired, including TDRs, accounts over 90 days past due and other accounts on non-accrual status.

The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class.  

	REVOLVING
At September 30, 2022	LOANS		2022		2021		2020		2019		2018		PRIOR		TOTAL
Dealer:
Wholesale:
Performing	$	2,304.8													$	2,304.8
Watch		3.0														3.0
	$	2,307.8													$	2,307.8
Retail:
Performing	$	197.0	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	140.3	$	1,718.9
At-risk														.8		.8
	$	197.0	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	141.1	$	1,719.7
Total dealer	$	2,504.8	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	141.1	$	4,027.5
Customer retail:
Fleet:
Performing			$	2,468.8	$	2,121.2	$	1,404.3	$	702.3	$	264.2	$	135.4	$	7,096.2
Watch				2.4		6.1		4.5		4.1		2.5		.6		20.2
At-risk				6.4		16.5		13.0		19.7		7.1		1.2		63.9
			$	2,477.6	$	2,143.8	$	1,421.8	$	726.1	$	273.8	$	137.2	$	7,180.3
Owner/operator:
Performing			$	386.3	$	451.4	$	273.3	$	135.7	$	56.0	$	13.6	$	1,316.3
Watch				.9		.6		.8		.4		.2				2.9
At-risk				.1		.6		.9		1.1		.8		.1		3.6
			$	387.3	$	452.6	$	275.0	$	137.2	$	57.0	$	13.7	$	1,322.8
Total customer retail			$	2,864.9	$	2,596.4	$	1,696.8	$	863.3	$	330.8	$	150.9	$	8,503.1
Total	$	2,504.8	$	3,239.1	$	2,967.7	$	1,936.5	$	1,126.6	$	463.9	$	292.0	$	12,530.6

	REVOLVING
At December 31, 2021	LOANS		2021		2020		2019		2018		2017		PRIOR		TOTAL
Dealer:
Wholesale:
Performing	$	1,859.7													$	1,859.7
Watch		6.1														6.1
	$	1,865.8													$	1,865.8
Retail:
Performing	$	201.9	$	434.4	$	315.4	$	311.7	$	176.0	$	118.2	$	96.9	$	1,654.5
Watch				7.0		3.6		9.1		4.6		1.1				25.4
At-risk														1.1		1.1
	$	201.9	$	441.4	$	319.0	$	320.8	$	180.6	$	119.3	$	98.0	$	1,681.0
Total dealer	$	2,067.7	$	441.4	$	319.0	$	320.8	$	180.6	$	119.3	$	98.0	$	3,546.8
Customer retail:
Fleet:
Performing			$	2,851.7	$	1,913.3	$	1,227.0	$	608.4	$	220.4	$	66.5	$	6,887.3
Watch				2.6		6.5		4.3		5.3		.6		.2		19.5
At-risk				6.0		8.5		26.0		10.6		3.3		.4		54.8
			$	2,860.3	$	1,928.3	$	1,257.3	$	624.3	$	224.3	$	67.1	$	6,961.6
Owner/operator:
Performing			$	611.9	$	389.9	$	228.1	$	116.0	$	38.6	$	10.1	$	1,394.6
Watch				.7		.5		.7		.4		.1				2.4
At-risk				.2		1.3		1.5		2.0		.5		.2		5.7
			$	612.8	$	391.7	$	230.3	$	118.4	$	39.2	$	10.3	$	1,402.7
Total customer retail			$	3,473.1	$	2,320.0	$	1,487.6	$	742.7	$	263.5	$	77.4	$	8,364.3
Total	$	2,067.7	$	3,914.5	$	2,639.0	$	1,808.4	$	923.3	$	382.8	$	175.4	$	11,911.1

The tables below summarize the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes.

	DEALER				CUSTOMER RETAIL
							OWNER/
At September 30, 2022	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	2,307.3	$	1,719.7	$	7,142.0	$	1,317.6	$	12,486.6
31 – 60 days past due		.5				8.8		2.2		11.5
Greater than 60 days past due						29.5		3.0		32.5
	$	2,307.8	$	1,719.7	$	7,180.3	$	1,322.8	$	12,530.6

	DEALER				CUSTOMER RETAIL
							OWNER/
At December 31, 2021	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	1,865.4	$	1,681.0	$	6,939.7	$	1,396.4	$	11,882.5
31 – 60 days past due		.4				9.3		1.8		11.5
Greater than 60 days past due						12.6		4.5		17.1
	$	1,865.8	$	1,681.0	$	6,961.6	$	1,402.7	$	11,911.1

The amortized cost basis of finance receivables that are on non-accrual status was as follows:

	DEALER			CUSTOMER RETAIL
						OWNER/
At September 30, 2022	WHOLESALE	RETAIL		FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	36.5	$	3.4	$	39.9
Amortized cost basis with no specific reserve		$	.8		8.3				9.1
Total		$	.8	$	44.8	$	3.4	$	49.0

	DEALER			CUSTOMER RETAIL
						OWNER/
At December 31, 2021	WHOLESALE	RETAIL		FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	40.3	$	5.7	$	46.0
Amortized cost basis with no specific reserve		$	1.1		4.7				5.8
Total		$	1.1	$	45.0	$	5.7	$	51.8

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Dealer:
Retail					$	.1	$	.1
Customer retail:
Fleet	$	.6	$	.7		2.0		2.4
Owner/operator		.1		.2		.2		.4
	$	.7	$	.9	$	2.3	$	2.9

Troubled Debt Restructurings

The balance of TDRs was $34.2 and $41.6 at September 30, 2022 and December 31, 2021, respectively. At modification date, the pre-modification and post-modification amortized cost basis balances for finance receivables modified during the period by portfolio class are as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2022				September 30, 2022
	AMORTIZED COST BASIS				AMORTIZED COST BASIS
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	1.6	$	1.6	$	9.7	$	9.7

	Three Months Ended				Nine Months Ended
	September 30, 2021				September 30, 2021
	AMORTIZED COST BASIS				AMORTIZED COST BASIS
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	1.0	$	1.0	$	5.8	$	5.7
Owner/operator						1.0		1.0
	$	1.0	$	1.0	$	6.8	$	6.7

The effect on the allowance for credit losses from such modifications was not significant at September 30, 2022 and 2021.

TDRs modified during the previous twelve months that subsequently defaulted (i.e., became more than 30 days past due) in the nine months ended September 30, 2022 and 2021 were $.8 and nil, respectively.

There were no finance receivables modified as TDRs during the previous twelve months that subsequently defaulted and were charged off in the nine months ended September 30, 2022 and 2021, respectively.

Repossessions

When the Company determines a customer is not likely to meet its contractual commitments, the Company repossesses the vehicles which serve as collateral for the loans, finance leases and equipment under operating leases. The Company records the vehicles as used truck inventory included in Financial Services Other assets on the Consolidated Balance Sheets. The balance of repossessed inventory at September 30, 2022 and December 31, 2021 was $6.1 and $4.7, respectively. Proceeds from the sales of repossessed assets were $16.1 and $33.9 for the nine months ended September 30, 2022 and 2021, respectively. These amounts are included in Proceeds from asset disposals in the Condensed Consolidated Statements of Cash Flows. Write-downs of repossessed equipment on operating leases are recorded as impairments and included in Financial Services Depreciation and other expenses on the Consolidated Statements of Comprehensive Income.

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Product Support Liabilities

9 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

Product Support Liabilities

NOTE F - Product Support Liabilities

Product support liabilities include estimated future payments related to product warranties and deferred revenues on optional extended warranties and R&M. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical and current data and reasonable expectations for the future regarding the frequency and cost of warranty claims, net of any recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred.

Changes in product support liabilities are summarized as follows:

WARRANTY RESERVES	2022			2021
Balance at January 1	$	344.3		$	389.7
Cost accruals		269.4			218.9
Payments		(302.9	)		(309.7	)
Change in estimates for pre-existing warranties		80.6			43.4
Currency translation and other		(23.2	)		(5.0	)
Balance at September 30	$	368.2		$	337.3

DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS		2022			2021
Balance at January 1	$	775.2		$	795.8
Deferred revenues		439.7			350.7
Revenues recognized		(352.7	)		(363.8	)
Currency translation		(56.7	)		(15.5	)
Balance at September 30	$	805.5		$	767.2

The Company expects to recognize approximately $70.7 of the remaining deferred revenue on extended warranties and R&M contracts in 2022, $245.3 in 2023, $232.4 in 2024, $142.0 in 2025, $78.1 in 2026 and $37.0 thereafter.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stockholders' Equity

NOTE G - Stockholders’ Equity

Comprehensive Income

The components of comprehensive income are as follow:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
Net income	$	769.4		$	380.5		$	2,090.3		$	1,346.8
Other comprehensive income (loss) (OCI):
Unrealized gains on derivative contracts		24.3			8.2			61.4			29.4
Tax effect		(6.3	)		(1.6	)		(17.2	)		(7.6	)
		18.0			6.6			44.2			21.8
Unrealized losses on marketable debt securities		(22.7	)		(3.4	)		(67.2	)		(12.2	)
Tax effect		5.5			.7			16.6			2.9
		(17.2	)		(2.7	)		(50.6	)		(9.3	)
Pension plans		20.2			22.7			50.4			49.0
Tax effect		(5.1	)		(5.4	)		(12.6	)		(11.6	)
		15.1			17.3			37.8			37.4
Foreign currency translation losses		(297.3	)		(136.8	)		(503.4	)		(144.8	)
Net other comprehensive loss		(281.4	)		(115.6	)		(472.0	)		(94.9	)
Comprehensive income	$	488.0		$	264.9		$	1,618.3		$	1,251.9

Accumulated Other Comprehensive Income (Loss)

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

Three Months Ended September 30, 2022	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at July 1, 2022	$	12.7		$	(34.5	)	$	(247.1	)	$	(842.8	)	$	(1,111.7	)
Recorded into AOCI		56.2			(16.9	)		9.5			(297.3	)		(248.5	)
Reclassified out of AOCI		(38.2	)		(.3	)		5.6						(32.9	)
Net other comprehensive income (loss)		18.0			(17.2	)		15.1			(297.3	)		(281.4	)
Balance at September 30, 2022	$	30.7		$	(51.7	)	$	(232.0	)	$	(1,140.1	)	$	(1,393.1	)

Three Months Ended September 30, 2021	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at July 1, 2021	$	(14.0	)	$	8.0		$	(558.0	)	$	(465.6	)	$	(1,029.6	)
Recorded into AOCI		35.3			(2.5	)		6.1			(136.8	)		(97.9	)
Reclassified out of AOCI		(28.7	)		(.2	)		11.2						(17.7	)
Net other comprehensive income (loss)		6.6			(2.7	)		17.3			(136.8	)		(115.6	)
Balance at September 30, 2021	$	(7.4	)	$	5.3		$	(540.7	)	$	(602.4	)	$	(1,145.2	)

Nine Months Ended September 30, 2022	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2022	$	(13.5	)	$	(1.1	)	$	(269.8	)	$	(636.7	)	$	(921.1	)
Recorded into AOCI		90.7			(50.0	)		20.9			(503.4	)		(441.8	)
Reclassified out of AOCI		(46.5	)		(.6	)		16.9						(30.2	)
Net other comprehensive income (loss)		44.2			(50.6	)		37.8			(503.4	)		(472.0	)
Balance at September 30, 2022	$	30.7		$	(51.7	)	$	(232.0	)	$	(1,140.1	)	$	(1,393.1	)

Nine Months Ended September 30, 2021	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2021	$	(29.2	)	$	14.6		$	(578.1	)	$	(457.6	)	$	(1,050.3	)
Recorded into AOCI		42.8			(8.2	)		3.3			(144.8	)		(106.9	)
Reclassified out of AOCI		(21.0	)		(1.1	)		34.1						12.0
Net other comprehensive income (loss)		21.8			(9.3	)		37.4			(144.8	)		(94.9	)
Balance at September 30, 2021	$	(7.4	)	$	5.3		$	(540.7	)	$	(602.4	)	$	(1,145.2	)

Reclassifications out of AOCI were as follows:

		Three Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	September 30
AOCI COMPONENTS	COMPREHENSIVE INCOME		2022			2021
Unrealized losses (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	2.0		$	1.3
	Cost of sales and revenues		(6.2	)		(3.5	)
	Interest and other (income), net		3.9			(.5	)
Commodity contracts	Cost of sales and revenues		7.0
Financial Services
Foreign-exchange contracts	Interest and other borrowing expenses		(3.0	)
Interest-rate contracts	Interest and other borrowing expenses		(56.2	)		(35.4	)
	Pre-tax expense reduction		(52.5	)		(38.1	)
	Tax expense		14.3			9.4
	After-tax expense reduction		(38.2	)		(28.7	)
Unrealized gains 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	Interest and other (income), net		7.1			14.7
Prior service costs	Interest and other (income), net		.2			.2
	Pre-tax expense increase		7.3			14.9
	Tax benefit		(1.7	)		(3.7	)
	After-tax expense increase		5.6			11.2
Total reclassifications out of AOCI		$	(32.9	)	$	(17.7	)

		Nine Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	September 30
AOCI COMPONENTS	COMPREHENSIVE INCOME		2022			2021
Unrealized losses (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	17.1		$	14.9
	Cost of sales and revenues		(3.5	)		2.5
	Interest and other (income), net		8.8			(.2	)
Commodity contracts	Cost of sales and revenues		17.4
Financial Services
Foreign-exchange contracts	Interest and other borrowing expenses		(7.6	)
Interest-rate contracts	Interest and other borrowing expenses		(99.3	)		(45.9	)
	Pre-tax expense reduction		(67.1	)		(28.7	)
	Tax expense		20.6			7.7
	After-tax expense reduction		(46.5	)		(21.0	)
Unrealized gains on marketable debt securities:
Marketable debt securities	Investment income		(.8	)		(1.5	)
	Tax expense		.2			.4
	After-tax income increase		(.6	)		(1.1	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Interest and other (income), net		21.7			44.2
Prior service costs	Interest and other (income), net		.5			.6
	Pre-tax expense increase		22.2			44.8
	Tax benefit		(5.3	)		(10.7	)
	After-tax expense increase		16.9			34.1
Total reclassifications out of AOCI		$	(30.2	)	$	12.0

Stock Compensation Plans

Stock-based compensation expense was $2.6 and $15.1 for the three months and nine months ended September 30, 2022, respectively and $2.6 and $12.0 for the three months and nine months ended September 30, 2021, respectively.

During the first nine months of 2022, the Company issued 437,947 common shares under deferred and stock compensation arrangements.  

Other Capital Stock Changes

During the first nine months of 2022, the Company acquired no treasury shares under the Company’s common stock repurchase plans. The Company acquired 21,853 shares under the Company’s Long-Term Incentive Plan. Stock repurchases of $390.0 million remain authorized under the current $500.0 million program approved by the PACCAR Board of Directors on December 4, 2018.

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Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE H - Income Taxes

The effective tax rate for the third quarter of 2022 was 21.5% compared to 21.9% for the third quarter of 2021. The effective tax rate for the first nine months of 2022 was 21.8% compared to 22.4% for the same period of 2021. The lower effective tax rate in the third quarter and first nine months of 2022 was primarily due to the change in mix of income generated in jurisdictions with lower tax rates in 2022 as compared to 2021.

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Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

NOTE I - Segment Information

PACCAR operates in three principal segments: Truck, Parts and Financial Services. The Company evaluates the performance of its Truck and Parts segments based on operating profits, which excludes investment income, other income and expense and income taxes. The Financial Services segment’s performance is evaluated based on income before income taxes. The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Truck and Parts

The Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks and the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles, both of which are sold through the same network of independent dealers. These segments derive a large proportion of their revenues and operating profits from operations in North America and Europe. The Truck segment incurs substantial costs to design, manufacture and sell trucks to its customers. The sale of new trucks provides the Parts segment with the basis for parts sales that may continue over the life of the truck, but are generally concentrated in the first five years after truck delivery. To reflect the benefit the Parts segment receives from costs incurred by the Truck segment, certain expenses are allocated from the Truck segment to the Parts segment. The expenses allocated are based on a percentage of the average annual expenses for factory overhead, engineering, research and development and SG&A expenses for the preceding five years. The allocation is based on the ratio of the average parts direct margin dollars (net sales less material and labor costs) to the total truck and parts direct margin dollars for the previous five years. The Company believes such expenses have been allocated on a reasonable basis. Truck segment assets related to the indirect expense allocation are not allocated to the Parts segment.

Financial Services

The Financial Services segment derives its earnings primarily from financing or leasing of PACCAR products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe.

In Europe, the Financial Services and Truck segments centralized the marketing of used trucks, including those units sold by the Truck segment subject to an RVG. When a customer returns the truck at the end of the RVG contract, the Company’s Truck segment records a reduction in an RVG liability and the Company’s Financial Services segment records a used truck asset and revenue from the subsequent sale. Certain gains and losses from the sale of these used trucks are shared with the Truck segment.

Other

Included in Other is the Company’s industrial winch manufacturing business as well as sales, income and expenses not attributable to a reportable segment. Other also includes non-service cost components of pension expense and a portion of corporate expenses.

	Three Months Ended						Nine Months Ended
	September 30						September 30
		2022			2021			2022			2021
Net sales and revenues:
Truck	$	5,389.8		$	3,583.2		$	15,724.8		$	12,277.6
Less intersegment		(191.6	)		(130.6	)		(493.1	)		(439.8	)
External customers		5,198.2			3,452.6			15,231.7			11,837.8
Parts		1,487.3			1,275.2			4,343.2			3,677.8
Less intersegment		(15.8	)		(15.0	)		(48.1	)		(45.6	)
External customers		1,471.5			1,260.2			4,295.1			3,632.2
Other		17.3			24.9			52.8			68.8
		6,687.0			4,737.7			19,579.6			15,538.8
Financial Services		371.9			409.1			1,110.6			1,297.4
	$	7,058.9		$	5,146.8		$	20,690.2		$	16,836.2
Income before income taxes:
Truck	$	430.5		$	80.4		$	1,129.3		$	606.9
Parts		373.6			282.1			1,067.1			800.5
Other		8.0			3.0			14.9			13.9
		812.1			365.5			2,211.3			1,421.3
Financial Services		146.2			120.1			437.6			303.0
Investment (loss) income		21.4			1.6			24.3			11.5
	$	979.7		$	487.2		$	2,673.2		$	1,735.8
Depreciation and amortization:
Truck	$	86.3		$	63.5		$	235.6		$	204.2
Parts		3.5			2.8			10.0			8.6
Other		6.0			5.3			17.9			16.0
		95.8			71.6			263.5			228.8
Financial Services		107.2			138.3			322.1			463.5
	$	203.0		$	209.9		$	585.6		$	692.3

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

NOTE J - Derivative Financial Instruments

As part of its risk management strategy, the Company enters into derivative contracts to hedge against the risks of interest rates, foreign currency rates and commodity prices. Certain derivative instruments designated as fair value hedges, cash flow hedges or net investment hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedging instruments. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate, commodity as well as certain foreign-exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral.

Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $238.0 at September 30, 2022.

The Company assesses hedges at inception and on an ongoing basis to determine that the designated derivatives are highly effective in offsetting changes in fair values or cash flow of the hedged items. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in Operating activities in the Condensed Consolidated Statements of Cash Flows.

Interest-Rate Contracts: The Company enters into various interest-rate contracts, including interest-rate swaps and cross currency interest-rate swaps. Interest-rate swaps involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency. Cross currency interest-rate swaps involve the exchange of notional amounts and interest payments in different currencies. The Company is exposed to interest-rate and exchange-rate risk caused by market volatility as a result of its borrowing activities. The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings. Net amounts paid or received are reflected as adjustments to interest expense.

At September 30, 2022, the notional amount of the Company’s interest-rate contracts was $2,710.0. Notional maturities for all interest-rate contracts are $184.5 for the remainder of 2022, $631.4 for 2023, $572.1 for 2024, $912.1 for 2025, $244.0 for 2026, $155.1 for 2027 and $10.8 thereafter.

Foreign-Exchange Contracts: The Company enters into foreign-exchange contracts to hedge certain anticipated transactions and assets and liabilities denominated in foreign currencies, particularly the Canadian dollar, the euro, the British pound, the Australian dollar, the Brazilian real and the Mexican peso. The objective is to reduce fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. The Company enters into foreign-exchange contracts as net investment hedges to reduce the foreign currency exposure from its investments in foreign subsidiaries. At September 30, 2022, the notional amount of the outstanding foreign-exchange contracts was $2,142.2. Foreign-exchange contracts mature within two years.

Commodity Contracts: The Company enters into commodity forward contracts to hedge the prices of certain commodities used in the production of trucks. The objective is to reduce the fluctuation in earnings and cash flows associated with movement in commodity prices. At September 30, 2022, the notional amount of the outstanding commodity contracts was $40.7. Commodity contracts mature within one year.

The following table presents the balance sheet classification, fair value, gross and pro forma net amounts of derivative financial instruments:

	September 30, 2022						December 31, 2021
	ASSETS			LIABILITIES			ASSETS			LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	131.1					$	30.8
Deferred taxes and other liabilities				$	62.6					$	54.4
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		101.0						25.3
Accounts payable, accrued expenses and other					5.2						15.8
Financial Services:
Other current assets		3.9						2.5
Deferred taxes and other liabilities					3.9						.1
Commodity contracts:
Truck, Parts and Other:
Accounts payable, accrued expenses and other					11.2						16.9
	$	236.0		$	82.9		$	58.6		$	87.2
Derivatives not designated as hedging instruments:
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	1.8					$	1.0
Accounts payable, accrued expenses and other				$	1.1					$	1.1
Financial Services:
Other assets		.2						.1
Deferred taxes and other liabilities					.2						.2
	$	2.0		$	1.3		$	1.1		$	1.3
Gross amounts recognized in Balance Sheets	$	238.0		$	84.2		$	59.7		$	88.5
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts	$	(3.5	)	$	(3.5	)	$	(2.7	)	$	(2.7	)
Financial Services:
Foreign-exchange contracts								(.2	)		(.2	)
Interest-rate contracts		(17.7	)		(17.7	)		(12.8	)		(12.8	)
Pro forma net amount	$	216.8		$	63.0		$	44.0		$	72.8

The following table presents the amount of loss (gain) from derivative financial instruments recorded in the Consolidated Statements of Comprehensive Income:

	Three Months Ended						Nine Months Ended
	September 30, 2022						September 30, 2022
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE
Truck, Parts and Other:
Net sales and revenues
Cash flow hedges				$	2.0					$	17.1
Cost of sales and revenues
Cash flow hedges					(6.2	)					(3.5	)
Derivatives not designated as hedging instruments					.4						.3
Interest and other (income), net
Cash flow hedges					3.9						8.8
Net investment hedges					(1.4	)					(4.2	)
Derivatives not designated as hedging instruments					(5.8	)					(4.5	)
				$	(7.1	)				$	14.0
Financial Services:
Interest and other borrowing expenses
Cash flow hedges	$	(56.2	)	$	(3.0	)	$	(99.3	)	$	(7.6	)
Fair value hedges		(.2	)					(.1	)
Derivatives not designated as hedging instruments					2.9						3.1
	$	(56.4	)	$	(.1	)	$	(99.4	)	$	(4.5	)
Total	$	(56.4	)	$	(7.2	)	$	(99.4	)	$	9.5

	Three Months Ended						Nine Months Ended
	September 30, 2021						September 30, 2021
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE
Truck, Parts and Other:
Net sales and revenues
Cash flow hedges				$	1.3					$	14.9
Cost of sales and revenues
Cash flow hedges					(3.5	)					2.5
Derivatives not designated as hedging instruments					17.8						8.8
Interest and other (income), net
Cash flow hedges					(.5	)					(.2	)
Net investment hedges					(.7	)					(2.4	)
Derivatives not designated as hedging instruments					(.6	)					1.0
				$	13.8					$	24.6
Financial Services:
Interest and other borrowing expenses
Cash flow hedges	$	(35.4	)				$	(45.9	)
Fair value hedges								.1
Derivatives not designated as hedging instruments				$	(.3	)				$	(.7	)
	$	(35.4	)	$	(.3	)	$	(45.8	)	$	(.7	)
Total	$	(35.4	)	$	13.5		$	(45.8	)	$	23.9

Utilization of commodity hedging was initiated in Q3 2021. The loss from commodity contracts recorded in Cost of sales and revenue was $7.0 and $17.4 for the three months and nine months ended September 30, 2022.

Fair Value Hedges  

Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with the changes in fair value of the hedged item attributable to the risk being hedged. The following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

	September 30		December 31
	2022		2021
Financial Services
Term notes:
Carrying amount of the hedged liabilities	$	329.3	$	472.0
Cumulative basis adjustment included in the carrying amount		28.6		8.7

The above table excludes the cumulative basis adjustments on discontinued hedge relationships of $7.0 and $(.1) as of September 30, 2022 and December 31, 2021, respectively.

Cash Flow Hedges

Substantially all of the Company’s interest-rate contracts and some foreign-exchange contracts and all commodity contracts have been designated as cash flow hedges. Changes in the fair value of derivatives designated as cash flow hedges are recorded in AOCI. Amounts in AOCI are reclassified into net income in the same period in which the hedged transaction affects earnings. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows is 5.8 years.

The following tables presents the pre-tax effects of gain (loss) on cash flow hedges recognized in other comprehensive income (loss) (OCI):

	Three Months Ended								Nine Months Ended
	September 30, 2022								September 30, 2022
	INTEREST-		FOREIGN-						INTEREST-		FOREIGN-
	RATE		EXCHANGE			COMMODITY			RATE		EXCHANGE			COMMODITY
Gain (loss) recognized in OCI:
Truck, Parts and Other			$	35.4		$	(7.9	)			$	35.5		$	(15.7	)
Financial Services	$	49.4		(.1	)				$	109.1		(.4	)
	$	49.4	$	35.3		$	(7.9	)	$	109.1	$	35.1		$	(15.7	)
	Three Months Ended								Nine Months Ended
	September 30, 2021								September 30, 2021
	INTEREST-		FOREIGN-						INTEREST-		FOREIGN-
	RATE		EXCHANGE			COMMODITY			RATE		EXCHANGE			COMMODITY
Gain (loss) recognized in OCI:
Truck, Parts and Other			$	2.3		$	(9.8	)			$	(6.7	)	$	(9.8	)
Financial Services	$	43.4		.6					$	67.1		(2.3	)
	$	43.4	$	2.9		$	(9.8	)	$	67.1	$	(9.0	)	$	(9.8	)

The amount of loss recorded in AOCI at September 30, 2022 that is estimated to be reclassified into earnings in the following 12 months if interest rates and exchange rates remain unchanged is approximately $25.1, net of taxes. The fixed interest earned on finance receivables will offset the amount recognized in interest expense, resulting in a stable interest margin consistent with the Company’s risk management strategy.

The amount of gains reclassified out of AOCI into net income based on the probability that the original forecasted transactions would not occur was nil and $.1 for the three months and nine months ended September 30, 2022, respectively and nil for both the three and nine months ended September 30, 2021.  

Net Investment Hedges

Changes in the fair value of derivatives designated as net investment hedges are recorded in AOCI as an adjustment to the Cumulative Translation Adjustment (CTA). At September 30, 2022, the notional amount of the outstanding net investment hedges was $347.0. For the three and nine months ended September 30, 2022, the pre-tax gain recognized in OCI for the net investment hedges were $22.8 and $58.8, respectively.

Derivatives Not Designated As Hedging Instruments

For other risk management purposes, the Company enters into derivative instruments that do not qualify for hedge accounting. These derivative instruments are used to mitigate the risk of market volatility arising from borrowings and foreign currency denominated transactions. Changes in the fair value of derivatives not designated as hedging instruments are recorded in earnings in the period in which the change occurs.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE K - Fair Value Measurements

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below.

Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment.

Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment.

The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements.  

Marketable Debt Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1.  

The fair value of U.S. government agency obligations, non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2.

Marketable Equity Securities: The Company’s equity securities are traded on active exchanges and are classified as Level 1.

Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps, foreign currency exchange and commodity contracts. These derivative contracts are traded over the counter, and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads, forward rates and commodity prices and are categorized as Level 2.

Assets and Liabilities Subject to Recurring Fair Value Measurement

The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows:

At September 30, 2022	LEVEL 1		LEVEL 2		TOTAL
Assets:
Marketable debt securities
U.S. tax-exempt securities			$	442.9	$	442.9
U.S. taxable municipal / non-U.S. provincial bonds				176.1		176.1
U.S. corporate securities				235.5		235.5
U.S. government and agency securities	$	109.0				109.0
Non-U.S. corporate securities				408.3		408.3
Non-U.S. government securities				70.1		70.1
Other debt securities				99.8		99.8
Total marketable debt securities	$	109.0	$	1,432.7	$	1,541.7
Marketable equity securities	$	2.5			$	2.5
Total marketable securities	$	111.5	$	1,432.7	$	1,544.2
Derivatives
Cross currency swaps			$	119.1	$	119.1
Interest-rate swaps				12.0		12.0
Foreign-exchange contracts				106.9		106.9
Total derivative assets			$	238.0	$	238.0
Liabilities:
Derivatives
Cross currency swaps			$	34.1	$	34.1
Interest-rate swaps				28.5		28.5
Foreign-exchange contracts				10.4		10.4
Commodity contracts				11.2		11.2
Total derivative liabilities			$	84.2	$	84.2

At December 31, 2021	LEVEL 1		LEVEL 2		TOTAL
Assets:
Marketable debt securities
U.S. tax-exempt securities			$	432.5	$	432.5
U.S. taxable municipal / non-U.S. provincial bonds				191.6		191.6
U.S. corporate securities				207.4		207.4
U.S. government and agency securities	$	96.4				96.4
Non-U.S. corporate securities				442.8		442.8
Non-U.S. government securities				75.0		75.0
Other debt securities				100.0		100.0
Total marketable debt securities	$	96.4	$	1,449.3	$	1,545.7
Marketable equity securities	$	13.7			$	13.7
Total marketable securities	$	110.1	$	1,449.3	$	1,559.4
Derivatives
Cross currency swaps			$	18.2	$	18.2
Interest-rate swaps				12.6		12.6
Foreign-exchange contracts				28.9		28.9
Total derivative assets			$	59.7	$	59.7
Liabilities:
Derivatives
Cross currency swaps			$	33.1	$	33.1
Interest-rate swaps				21.3		21.3
Foreign-exchange contracts				17.2		17.2
Commodity contracts				16.9		16.9
Total derivative liabilities			$	88.5	$	88.5

Fair Value Disclosure of Other Financial Instruments

For financial instruments that are not recognized at fair value, the Company uses the following methods and assumptions to determine the fair value. These instruments are categorized as Level 2, except cash which is categorized as Level 1 and fixed rate loans which are categorized as Level 3.

Cash and Cash Equivalents: Carrying amounts approximate fair value.

Financial Services Net Receivables: For floating rate loans, wholesale financing and operating lease and other trade receivables, carrying values approximate fair values. For fixed rate loans, fair values are estimated using the income approach by discounting cash flows to their present value based on assumptions regarding the credit and market risks to approximate current rates for comparable loans. Finance lease receivables and related allowance for credit losses have been excluded from the accompanying table.

Debt: The carrying amounts of Financial Services commercial paper, variable rate bank loans and variable rate term notes approximate fair value. For fixed rate debt, fair values are estimated using the income approach by discounting cash flows to their present value based on current rates for comparable debt.

The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows:

	September 30, 2022				December 31, 2021
	CARRYING		FAIR		CARRYING		FAIR
	AMOUNT		VALUE		AMOUNT		VALUE
Assets:
Financial Services fixed rate loans	$	6,399.8	$	6,115.0	$	6,011.7	$	6,018.2
Liabilities:
Financial Services fixed rate debt		7,046.1		6,681.2		6,905.7		6,935.1

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

NOTE L - Employee Benefit Plans

The Company has several defined benefit pension plans, which cover a majority of its employees. The following information details the components of net pension expense for the Company’s defined benefit plans:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
Service cost	$	37.7		$	37.6		$	113.5		$	113.0
Interest on projected benefit obligation		21.0			16.7			63.9			50.0
Expected return on assets		(53.2	)		(51.1	)		(162.0	)		(153.4	)
Amortization of prior service costs		.2			.2			.5			.6
Recognized actuarial loss		7.1			14.7			21.7			44.2
Net pension expense	$	12.8		$	18.1		$	37.6		$	54.4

The components of net pension expense other than service cost are included in Interest and other (income), net on the Consolidated Statements of Comprehensive Income.

During the three months and nine months ended September 30, 2022, the Company contributed $21.1 and $34.3 to its pension plans, respectively, and $6.3 and $19.2 for the three and nine months ended September 30, 2021, respectively.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE M – Commitments and Contingencies

On July 19, 2016, the European Commission (EC) concluded its investigation of all major European truck manufacturers and reached a settlement with DAF Trucks N.V., DAF Trucks Deutschland GmbH and PACCAR Inc (collectively “the Company”). Following the settlement, certain EC-related claims and lawsuits have been filed in various European jurisdictions against all major European truck manufacturers including the Company and certain subsidiaries. These claims and lawsuits include a number of collective proceedings, including a class action in the United Kingdom, alleging EC-related claims and seeking alleged damages. In certain jurisdictions, the limitations period has not yet expired and additional claimants may bring EC-related claims and lawsuits against the Company or its subsidiaries.

The legal proceedings are continuing to move through the court systems in the various jurisdictions with some larger cases awaiting judgment in 2022 and others scheduled for trial in upcoming years. While the Company believes it has meritorious defenses to all EC-related claims and lawsuits, the final disposition of all such claims and lawsuits will likely take a significant period of time to resolve and the final outcomes are highly uncertain. The Company cannot at this time reasonably estimate a range of loss, if any, that may result. Adverse final decisions involving significant numbers of DAF truck sales could have a material impact on the Company’s results of operations and cash flows.

PACCAR is also a defendant in various other legal proceedings and, in addition, there are various other contingent liabilities arising in the normal course of business. After consultation with legal counsel, management does not anticipate that disposition of these various other proceedings and contingent liabilities will have a material effect on the consolidated financial statements.

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Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Sales and Revenues

Truck, Parts and Other

The Company enters into sales contracts with customers associated with purchases of the Company’s products and services including trucks, parts, product support, and other related services. Generally, the Company recognizes revenue for the amount of consideration it will receive for delivering a product or service to a customer. Revenue is recognized when the customer obtains control of the product or receives benefits of the service. The Company excludes sales taxes, value added taxes and other related taxes assessed by government agencies from revenue. There are no significant financing components included in product or services revenue since generally customers pay shortly after the products or services are transferred. In the Truck and Parts segment, when the Company grants extended payment terms on selected receivables and charges interest, interest income is recognized when earned.

The following table disaggregates Truck, Parts and Other revenues by major sources:  

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Truck
Truck sales	$	4,991.4	$	3,258.3	$	14,602.7	$	11,253.7
Revenues from extended warranties, operating leases and other		206.8		194.3		629.0		584.1
		5,198.2		3,452.6		15,231.7		11,837.8
Parts
Parts sales		1,429.3		1,226.1		4,171.9		3,528.1
Revenues from dealer services and other		42.2		34.1		123.2		104.1
		1,471.5		1,260.2		4,295.1		3,632.2
Winch sales and other		17.3		24.9		52.8		68.8
Truck, Parts and Other sales and revenues	$	6,687.0	$	4,737.7	$	19,579.6	$	15,538.8

The Company recognizes truck and parts sales as revenues when control of the products is transferred to customers which generally occurs upon shipment, except for certain truck sales which are subject to a residual value guarantee (RVG) by the Company. The standard payment term for trucks and aftermarket parts is typically within 30 days, but the Company may grant extended payment terms on selected receivables. The Company recognizes revenue for the invoice amount adjusted for estimated sales incentives and returns. Sales incentives and returns are estimated based on historical experience and are adjusted to current period revenue when the most likely amount of consideration the Company expects to receive changes or becomes fixed. Truck and parts sales include a standard product warranty which is included in cost of sales. The Company has elected to treat delivery services as a fulfillment activity with revenues recognized when the customer obtains control of the product. Delivery revenue is included in revenues and the related costs are included in cost of sales. As a practical expedient, the Company is not disclosing truck order backlog, as a significant majority of the backlog has a duration of less than one year.

Truck sales with RVGs that allow customers the option to return their truck are accounted for as a sale when the customer does not have an economic incentive to return the truck to the Company, or as an operating lease when the customer does have an economic incentive to return the truck. The estimate of customers’ economic incentive to return the trucks is based on an analysis of historical guaranteed buyback value and estimated market value. When truck sales with RVGs are accounted for as a sale, revenue is recognized when the truck is transferred to the customer less an amount for expected returns. Expected return rates are estimated by using a historical weighted average return rate over an eight-year period.

Aftermarket parts sales allow for returns which are estimated at the time of sale based on historical data. Parts dealer services and other revenues are recognized as services are performed.

The following table presents the balance sheet classification of the estimated value of the truck assets to be returned goods assets and the related return liabilities:

	September 30, 2022				December 31, 2021
	ASSETS		LIABILITIES		ASSETS		LIABILITIES
Trucks
Other current assets	$	177.8			$	255.7
Accounts payable, accrued expenses and other			$	180.5			$	264.0
Other noncurrent assets, net		290.8				403.6
Other liabilities				304.9				423.9
	$	468.6	$	485.4	$	659.3	$	687.9
Parts
Other current assets	$	82.0			$	72.9
Accounts payable, accrued expenses and other			$	193.5			$	172.1
	$	82.0	$	193.5	$	72.9	$	172.1

For contracts accounted for as a sale, the Company’s total commitment to acquire trucks at a guaranteed value was $934.3 at September 30, 2022.

Revenues from extended warranties, operating leases and other include optional extended warranty and repair and maintenance (R&M) service contracts which can be purchased for periods generally ranging up to five years. The Company defers revenue based on stand-alone observable selling prices when it receives payments in advance and generally recognizes the revenue on a straight-line basis over the warranty or R&M contract periods. See Note F, Product Support Liabilities, in the Notes to the Consolidated Financial Statements for further information. Also included are truck sales with an RVG accounted for as an operating lease. A liability is created for the residual value obligation with the remainder of the proceeds recorded as deferred revenue. The deferred revenue is recognized on a straight-line basis over the guarantee period, which typically ranges from three to five years. Deferred revenue related to trucks sold with an RVG was $52.7 at September 30, 2022. The Company expects to recognize approximately $7.6 of the remaining deferred revenue in 2022, $24.3 in 2023, $13.1 in 2024, $4.8 in 2025 and $2.9 in 2026. For the three and nine months ended September 30, 2022, total operating lease revenue from truck sales with RVGs was $29.3 and $79.2, respectively compared to $24.9 and $75.2 for the three and nine months ended September 30, 2021. The Company’s total commitment to acquire trucks at a guaranteed value for contracts accounted for as a lease was $174.3 at September 30, 2022.

Revenue from winch sales and other is primarily derived from the industrial winch business. Winch sales are recognized when the product is transferred to a customer, which generally occurs upon shipment. Also within this category are other revenues not attributable to a reportable segment.

Inventories

Inventories are stated at the lower of cost or market. Cost of inventories is determined principally by the first-in, first-out (FIFO) method.

Allowance for Credit Losses

Allowance for Credit Losses

The Company continuously monitors the payment performance of its finance receivables. For large retail finance customers and dealers with wholesale financing, the Company regularly reviews their financial statements and makes site visits and phone contact as appropriate. If the Company becomes aware of circumstances that could cause those customers or dealers to face financial difficulty, whether or not they are past due, the customers are placed on a watch list.  

The Company modifies loans and finance leases in the normal course of its Financial Services operations. The Company may modify loans and finance leases for commercial reasons or for credit reasons. Modifications for commercial reasons are changes to contract terms for customers that are not considered to be in financial difficulty. Insignificant delays are modifications extending terms up to three months for customers experiencing some short-term financial stress, but not considered to be in financial difficulty. Modifications for credit reasons are changes to contract terms for customers considered to be in financial difficulty. The Company’s modifications typically result in granting more time to pay the contractual amounts owed and charging a fee and interest for the term of the modification.  

When considering whether to modify customer accounts for credit reasons, the Company evaluates the creditworthiness of the customers and modifies those accounts that the Company considers likely to perform under the modified terms. When the Company modifies a loan or finance lease for credit reasons and grants a concession, the modification is classified as a troubled debt restructuring (TDR). The Company does not typically grant credit modifications for customers that do not meet minimum underwriting standards since the Company normally repossesses the financed equipment in these circumstances. When such modifications do occur, they are considered TDRs.

On average, modifications extended contractual terms by approximately three months in 2022 and four months in 2021, and did not have a significant effect on the weighted average term or interest rate of the total portfolio at September 30, 2022 and December 31, 2021.

The Company has developed a systematic methodology for determining the allowance for credit losses for its two portfolio segments, retail and wholesale. The retail segment consists of retail loans and sales-type finance leases, net of unearned interest. The wholesale segment consists of truck inventory financing loans to dealers that are collateralized by trucks and other collateral. The wholesale segment generally has less risk than the retail segment. Wholesale receivables generally are shorter in duration than retail receivables, and the Company requires periodic reporting of the wholesale dealer’s financial condition, conducts periodic audits of the trucks being financed and in many cases, obtains guarantees or other security such as dealership assets. In determining the allowance for credit losses, retail loans and finance leases are evaluated together since they relate to a similar customer base, their contractual terms require regular payment of principal and interest, generally over three to five years, and they are secured by the same type of collateral. The allowance for credit losses consists of both specific and general reserves.

The Company individually evaluates certain finance receivables for impairment. Finance receivables that are evaluated individually for impairment consist of all wholesale accounts and certain large retail accounts with past due balances or otherwise determined to be at a higher risk of loss. A finance receivable is impaired if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. In addition, all retail loans and leases which have been classified as TDRs and all customer accounts over 90 days past due are considered impaired. Generally, impaired accounts are on non-accrual status. Impaired accounts classified as TDRs which have been performing for 90 consecutive days are placed on accrual status if it is deemed probable that the Company will collect all principal and interest payments.

Impaired receivables are generally considered collateral dependent. Large balance retail and all wholesale impaired receivables are individually evaluated to determine the appropriate reserve for losses. The determination of reserves for large balance impaired receivables considers the fair value of the associated collateral. When the underlying collateral fair value exceeds the Company’s amortized cost basis, no reserve is recorded. Small balance impaired receivables with similar risk characteristics are evaluated as a separate pool to determine the appropriate reserve for losses using the historical loss information discussed below.  

The Company evaluates finance receivables that are not individually impaired and share similar risk characteristics on a collective basis and determines the general allowance for credit losses for both retail and wholesale receivables based on historical loss information, using past due account data, current market conditions, and expected changes in future macroeconomic conditions that affect collectability. Historical credit loss data provides relevant information of expected credit losses. The historical information used includes assumptions regarding the likelihood of collecting current and past due accounts, repossession rates, and the recovery rate on the underlying collateral based on used truck values and other pledged collateral or recourse.

The Company has developed a range of loss estimates for each of its country portfolios based on historical experience, taking into account loss frequency and severity in both strong and weak truck market conditions. A projection is made of the range of estimated credit losses inherent in the portfolio from which an amount is determined based on current market conditions and other factors impacting the creditworthiness of the Company’s borrowers and their ability to repay. Adjustments to historical loss information are made for changes in forecasted economic conditions that are specific to the industry and markets in which the Company conducts business. The Company utilizes economic forecasts from third party sources and determines expected losses based on historical experience under similar market conditions. After determining the appropriate level of the allowance for credit losses, a provision for losses on finance receivables is charged to income as necessary to reflect management’s estimate of expected credit losses, net of recoveries, inherent in the portfolio.

In determining the fair value of the collateral, the Company uses a pricing matrix and categorizes the fair value as Level 2 in the hierarchy of fair value measurement. The pricing matrix is reviewed quarterly and updated as appropriate. The pricing matrix considers the make, model and year of the equipment as well as recent sales prices of comparable equipment sold individually, which is the lowest unit of account, through wholesale channels to the Company’s dealers (principal market). The fair value of the collateral also considers the overall condition of the equipment.

Accounts are charged off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible, which generally occurs upon repossession of the collateral. Typically the timing between the repossession and charge-off is not significant. In cases where repossession is delayed (e.g., for legal proceedings), the Company records a partial charge-off. The charge-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost basis.

Product Support Liabilities

Product support liabilities include estimated future payments related to product warranties and deferred revenues on optional extended warranties and R&M. The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine. Specific terms and conditions vary depending on the product and the country of sale. Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years. Warranty expenses and reserves are estimated and recorded at the time products or contracts are sold based on historical and current data and reasonable expectations for the future regarding the frequency and cost of warranty claims, net of any recoveries. The Company periodically assesses the adequacy of its recorded liabilities and adjusts them as appropriate to reflect actual experience. Revenue from extended warranty and R&M contracts is deferred and recognized to income generally on a straight-line basis over the contract period. Warranty and R&M costs on these contracts are recognized as incurred.

Derivative Financial Instruments

As part of its risk management strategy, the Company enters into derivative contracts to hedge against the risks of interest rates, foreign currency rates and commodity prices. Certain derivative instruments designated as fair value hedges, cash flow hedges or net investment hedges are subject to hedge accounting. Derivative instruments that are not subject to hedge accounting are held as derivatives not designated as hedging instruments. The Company’s policies prohibit the use of derivatives for speculation or trading. At the inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. All of the Company’s interest-rate, commodity as well as certain foreign-exchange contracts are transacted under International Swaps and Derivatives Association (ISDA) master agreements. Each agreement permits the net settlement of amounts owed in the event of default and certain other termination events. For derivative financial instruments, the Company has elected not to offset derivative positions in the balance sheet with the same counterparty under the same agreements and is not required to post or receive collateral.

Exposure limits and minimum credit ratings are used to minimize the risks of counterparty default. The Company’s maximum exposure to potential default of its derivative counterparties is limited to the asset position of its derivative portfolio. The asset position of the Company’s derivative portfolio was $238.0 at September 30, 2022.

The Company assesses hedges at inception and on an ongoing basis to determine that the designated derivatives are highly effective in offsetting changes in fair values or cash flow of the hedged items. Hedge accounting is discontinued prospectively when the Company determines that a derivative financial instrument has ceased to be a highly effective hedge. Cash flows from derivative instruments are included in Operating activities in the Condensed Consolidated Statements of Cash Flows.

Fair Value Measurement Policy

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques used to measure fair value are either observable or unobservable. These inputs have been categorized into the fair value hierarchy described below.

Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, valuation of these instruments does not require a significant degree of judgment.

Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment.

The Company uses the following methods and assumptions to measure fair value for assets and liabilities subject to recurring fair value measurements.  

Marketable Debt Securities: The Company’s marketable debt securities consist of municipal bonds, government obligations, investment-grade corporate obligations, commercial paper, asset-backed securities and term deposits. The fair value of U.S. government obligations is determined using the market approach and is based on quoted prices in active markets and are categorized as Level 1.  

The fair value of U.S. government agency obligations, non-U.S. government bonds, municipal bonds, corporate bonds, asset-backed securities, commercial paper and term deposits is determined using the market approach and is primarily based on matrix pricing as a practical expedient which does not rely exclusively on quoted prices for a specific security. Significant inputs used to determine fair value include interest rates, yield curves, credit rating of the security and other observable market information and are categorized as Level 2.

Marketable Equity Securities: The Company’s equity securities are traded on active exchanges and are classified as Level 1.

Derivative Financial Instruments: The Company’s derivative contracts consist of interest-rate swaps, cross currency swaps, foreign currency exchange and commodity contracts. These derivative contracts are traded over the counter, and their fair value is determined using industry standard valuation models, which are based on the income approach (i.e., discounted cash flows). The significant observable inputs into the valuation models include interest rates, yield curves, currency exchange rates, credit default swap spreads, forward rates and commodity prices and are categorized as Level 2.

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Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Dilutive and Antidilutive Options

The dilutive and antidilutive options are shown separately in the table below.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Additional shares		463,000		519,900		485,600		678,000
Antidilutive options		1,091,300		580,400		1,100,300		583,600

Cumulative Effect of Change in Consolidated Balance Sheet and Consolidated Income Statement

The effect of the changes made to the Company’s Consolidated Statements of Comprehensive Income was as follows:

Three Months Ended September 30, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE			AS ADJUSTED
Truck, Parts and Other
Cost of sales and revenues	$	4,180.1	$	(3.9	)	$	4,176.2
Income Taxes		105.6		1.1			106.7
Net Income		377.7		2.8			380.5

Nine Months Ended September 30, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE			AS ADJUSTED
Truck, Parts and Other
Cost of sales and revenues	$	13,533.5	$	(8.2	)	$	13,525.3
Income Taxes		386.9		2.1			389.0
Net Income		1,340.7		6.1			1,346.8

The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet was as follows:

December 31, 2021	AS ORIGINALLY REPORTED		EFFECT OF CHANGE		AS ADJUSTED
Truck, Parts and Other
Inventories, net	$	1,768.3	$	207.7	$	1,976.0
Other liabilities		1,436.5		51.1		1,487.6
Retained earnings		11,869.2		156.6		12,025.8

Compare Currently Reported Amounts and Reported Under LIFO in Consolidated Balance Sheet and Consolidated Statements of Comprehensive Income

The following table compares the amounts currently reported to amounts that would have been reported under LIFO in the Consolidated Statements of Comprehensive Income.

Three Months Ended September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Cost of sales and revenues	$	5,689.3	$	5,699.1	$	(9.8	)
Income Taxes		210.3		207.9		2.4
Net Income		769.4		762.0		7.4
Net Income Per Share
Basic	$	2.21	$	2.19	$	.02
Diluted	$	2.21	$	2.18	$	.03

Nine Months Ended September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Cost of sales and revenues	$	16,785.8	$	16,821.5	$	(35.7	)
Income Taxes		582.9		574.1		8.8
Net Income		2,090.3		2,063.4		26.9
Net Income Per Share
Basic	$	6.00	$	5.92	$	.08
Diluted	$	5.99	$	5.91	$	.08

The effect of the change to income before income taxes within the Truck, Parts and Other segments for the three months and nine months ended September 30, 2022 would not be material. In addition, there would be no material effect on the Consolidated Statements of Cash Flows.

The following table compares the amounts currently reported to amounts that would have been reported under LIFO in the Consolidated Balance Sheet.

September 30, 2022	AS REPORTED		PRO FORMA UNDER LIFO		EFFECT OF CHANGE
Truck, Parts and Other
Inventories, net	$	2,382.1	$	2,138.7	$	243.4
Accounts payable, accrued expenses and other		4,381.8		4,321.9		59.9
Retained earnings		13,760.8		13,577.3		183.5

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Sales and Revenues (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Revenues by Major Sources

The following table disaggregates Truck, Parts and Other revenues by major sources:  

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Truck
Truck sales	$	4,991.4	$	3,258.3	$	14,602.7	$	11,253.7
Revenues from extended warranties, operating leases and other		206.8		194.3		629.0		584.1
		5,198.2		3,452.6		15,231.7		11,837.8
Parts
Parts sales		1,429.3		1,226.1		4,171.9		3,528.1
Revenues from dealer services and other		42.2		34.1		123.2		104.1
		1,471.5		1,260.2		4,295.1		3,632.2
Winch sales and other		17.3		24.9		52.8		68.8
Truck, Parts and Other sales and revenues	$	6,687.0	$	4,737.7	$	19,579.6	$	15,538.8

Estimated Value of Returned Goods Assets and Related Return Liabilities

The following table presents the balance sheet classification of the estimated value of the truck assets to be returned goods assets and the related return liabilities:

	September 30, 2022				December 31, 2021
	ASSETS		LIABILITIES		ASSETS		LIABILITIES
Trucks
Other current assets	$	177.8			$	255.7
Accounts payable, accrued expenses and other			$	180.5			$	264.0
Other noncurrent assets, net		290.8				403.6
Other liabilities				304.9				423.9
	$	468.6	$	485.4	$	659.3	$	687.9
Parts
Other current assets	$	82.0			$	72.9
Accounts payable, accrued expenses and other			$	193.5			$	172.1
	$	82.0	$	193.5	$	72.9	$	172.1

Financial Services

Summary of Financial Services Lease Revenues by Lease Type

The following table summarizes Financial Services lease revenues by lease type:  

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Finance lease revenues	$	46.6	$	46.7	$	134.5	$	142.8
Operating lease revenues		192.4		206.4		595.7		627.9
Total lease revenues	$	239.0	$	253.1	$	730.2	$	770.7

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Investments in Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2022

Investments Debt And Equity Securities [Abstract]

Marketable Securities

Marketable securities at September 30, 2022 and December 31, 2021 consisted of the following:

			UNREALIZED	UNREALIZED		FAIR
At September 30, 2022	COST		GAINS	LOSSES		VALUE
Marketable debt securities
U.S. tax-exempt securities	$	455.5		$	12.6	$	442.9
U.S. taxable municipal / non-U.S. provincial bonds		187.5			11.4		176.1
U.S. corporate securities		249.3			13.8		235.5
U.S. government and agency securities		112.3			3.3		109.0
Non-U.S. corporate securities		428.0			19.7		408.3
Non-U.S. government securities		73.1			3.0		70.1
Other debt securities		104.8			5.0		99.8
Marketable equity securities		15.4			12.9		2.5
Total marketable securities	$	1,625.9		$	81.7	$	1,544.2

			UNREALIZED		UNREALIZED		FAIR
At December 31, 2021	COST		GAINS		LOSSES		VALUE
Marketable debt securities
U.S. tax-exempt securities	$	431.4	$	1.5	$	.4	$	432.5
U.S. taxable municipal / non-U.S. provincial bonds		192.2		.6		1.2		191.6
U.S. corporate securities		208.3		.6		1.5		207.4
U.S. government and agency securities		95.9		.6		.1		96.4
Non-U.S. corporate securities		443.9		1.4		2.5		442.8
Non-U.S. government securities		75.2		.1		.3		75.0
Other debt securities		100.4		.3		.7		100.0
Marketable equity securities		15.4		1.3		3.0		13.7
Total marketable securities	$	1,562.7	$	6.4	$	9.7	$	1,559.4

Marketable Debt Securities Continuous Unrealized Losses

Marketable debt securities with continuous unrealized losses and their related fair values were as follows:

	September 30, 2022				December 31, 2021
	LESS THAN		TWELVE MONTHS		LESS THAN		TWELVE MONTHS
	TWELVE MONTHS		OR GREATER		TWELVE MONTHS		OR GREATER
Fair value	$	1,231.6	$	281.0	$	911.2	$	1.3
Unrealized losses		47.4		21.4		6.7

Contractual Maturities of Debt Securities

Contractual maturities of marketable debt securities at September 30, 2022 were as follows:

	AMORTIZED		FAIR
	COST		VALUE
Within one year	$	448.4	$	442.4
One to five years		1,139.6		1,078.6
Six to ten years		9.0		8.9
More than ten years		13.5		11.8
	$	1,610.5	$	1,541.7

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Inventories (Tables)

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Inventories

Inventories include the following:

	September 30		December 31
	2022		2021
Finished products	$	826.5	$	676.0
Work in process and raw materials		1,555.6		1,300.0
	$	2,382.1	$	1,976.0

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Finance and Other Receivables (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Finance and Other Receivables

Finance and other receivables include the following:

	September 30			December 31
	2022			2021
Loans	$	6,750.4		$	6,424.7
Finance leases		3,472.4			3,620.6
Dealer wholesale financing		2,307.8			1,865.8
Operating lease receivables and other		136.5			126.6
		12,667.1			12,037.7
Less allowance for losses:
Loans and leases		(111.3	)		(111.5	)
Dealer wholesale financing		(3.5	)		(3.3	)
Operating lease receivables and other		(3.1	)		(2.1	)
	$	12,549.2		$	11,920.8

Allowance for Credit Losses

The allowance for credit losses is summarized as follows:

	2022
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	3.3		$	7.1		$	104.4		$	2.1		$	116.9
Provision for losses		.4			(3.3	)		8.1			(1.4	)		3.8
Charge-offs								(6.3	)		(.1	)		(6.4	)
Recoveries		.1						5.2			1.8			7.1
Currency translation and other		(.3	)					(3.9	)		.7			(3.5	)
Balance at September 30	$	3.5		$	3.8		$	107.5		$	3.1		$	117.9

	2021
	DEALER						CUSTOMER
	WHOLESALE			RETAIL			RETAIL			OTHER*			TOTAL
Balance at January 1	$	3.4		$	8.4		$	112.0		$	3.2		$	127.0
Provision for losses		(1.0	)		(.7	)		3.5			1.4			3.2
Charge-offs								(9.7	)		(1.3	)		(11.0	)
Recoveries								4.1			.2			4.3
Currency translation and other								(1.7	)		(.1	)		(1.8	)
Balance at September 30	$	2.4		$	7.7		$	108.2		$	3.4		$	121.7

* Operating leases and other trade receivables.

Amortized Cost Basis of Finance Receivables by Credit Quality Indicator and Portfolio Class

The tables below summarize the amortized cost basis of the Company’s finance receivables within each credit quality indicator by year of origination and portfolio class.  

	REVOLVING
At September 30, 2022	LOANS		2022		2021		2020		2019		2018		PRIOR		TOTAL
Dealer:
Wholesale:
Performing	$	2,304.8													$	2,304.8
Watch		3.0														3.0
	$	2,307.8													$	2,307.8
Retail:
Performing	$	197.0	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	140.3	$	1,718.9
At-risk														.8		.8
	$	197.0	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	141.1	$	1,719.7
Total dealer	$	2,504.8	$	374.2	$	371.3	$	239.7	$	263.3	$	133.1	$	141.1	$	4,027.5
Customer retail:
Fleet:
Performing			$	2,468.8	$	2,121.2	$	1,404.3	$	702.3	$	264.2	$	135.4	$	7,096.2
Watch				2.4		6.1		4.5		4.1		2.5		.6		20.2
At-risk				6.4		16.5		13.0		19.7		7.1		1.2		63.9
			$	2,477.6	$	2,143.8	$	1,421.8	$	726.1	$	273.8	$	137.2	$	7,180.3
Owner/operator:
Performing			$	386.3	$	451.4	$	273.3	$	135.7	$	56.0	$	13.6	$	1,316.3
Watch				.9		.6		.8		.4		.2				2.9
At-risk				.1		.6		.9		1.1		.8		.1		3.6
			$	387.3	$	452.6	$	275.0	$	137.2	$	57.0	$	13.7	$	1,322.8
Total customer retail			$	2,864.9	$	2,596.4	$	1,696.8	$	863.3	$	330.8	$	150.9	$	8,503.1
Total	$	2,504.8	$	3,239.1	$	2,967.7	$	1,936.5	$	1,126.6	$	463.9	$	292.0	$	12,530.6

	REVOLVING
At December 31, 2021	LOANS		2021		2020		2019		2018		2017		PRIOR		TOTAL
Dealer:
Wholesale:
Performing	$	1,859.7													$	1,859.7
Watch		6.1														6.1
	$	1,865.8													$	1,865.8
Retail:
Performing	$	201.9	$	434.4	$	315.4	$	311.7	$	176.0	$	118.2	$	96.9	$	1,654.5
Watch				7.0		3.6		9.1		4.6		1.1				25.4
At-risk														1.1		1.1
	$	201.9	$	441.4	$	319.0	$	320.8	$	180.6	$	119.3	$	98.0	$	1,681.0
Total dealer	$	2,067.7	$	441.4	$	319.0	$	320.8	$	180.6	$	119.3	$	98.0	$	3,546.8
Customer retail:
Fleet:
Performing			$	2,851.7	$	1,913.3	$	1,227.0	$	608.4	$	220.4	$	66.5	$	6,887.3
Watch				2.6		6.5		4.3		5.3		.6		.2		19.5
At-risk				6.0		8.5		26.0		10.6		3.3		.4		54.8
			$	2,860.3	$	1,928.3	$	1,257.3	$	624.3	$	224.3	$	67.1	$	6,961.6
Owner/operator:
Performing			$	611.9	$	389.9	$	228.1	$	116.0	$	38.6	$	10.1	$	1,394.6
Watch				.7		.5		.7		.4		.1				2.4
At-risk				.2		1.3		1.5		2.0		.5		.2		5.7
			$	612.8	$	391.7	$	230.3	$	118.4	$	39.2	$	10.3	$	1,402.7
Total customer retail			$	3,473.1	$	2,320.0	$	1,487.6	$	742.7	$	263.5	$	77.4	$	8,364.3
Total	$	2,067.7	$	3,914.5	$	2,639.0	$	1,808.4	$	923.3	$	382.8	$	175.4	$	11,911.1

Amortized Cost Basis of Financing Receivables by Aging Category

The tables below summarize the Company’s finance receivables by aging category. In determining past due status, the Company considers the entire contractual account balance past due when any installment is over 30 days past due. Substantially all customer accounts that were greater than 30 days past due prior to credit modification became current upon modification for aging purposes.

	DEALER				CUSTOMER RETAIL
							OWNER/
At September 30, 2022	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	2,307.3	$	1,719.7	$	7,142.0	$	1,317.6	$	12,486.6
31 – 60 days past due		.5				8.8		2.2		11.5
Greater than 60 days past due						29.5		3.0		32.5
	$	2,307.8	$	1,719.7	$	7,180.3	$	1,322.8	$	12,530.6

	DEALER				CUSTOMER RETAIL
							OWNER/
At December 31, 2021	WHOLESALE		RETAIL		FLEET		OPERATOR		TOTAL
Current and up to 30 days past due	$	1,865.4	$	1,681.0	$	6,939.7	$	1,396.4	$	11,882.5
31 – 60 days past due		.4				9.3		1.8		11.5
Greater than 60 days past due						12.6		4.5		17.1
	$	1,865.8	$	1,681.0	$	6,961.6	$	1,402.7	$	11,911.1

Summary of Amortized Cost Basis of Finance Receivables that are on Non-Accrual Status

The amortized cost basis of finance receivables that are on non-accrual status was as follows:

	DEALER			CUSTOMER RETAIL
						OWNER/
At September 30, 2022	WHOLESALE	RETAIL		FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	36.5	$	3.4	$	39.9
Amortized cost basis with no specific reserve		$	.8		8.3				9.1
Total		$	.8	$	44.8	$	3.4	$	49.0

	DEALER			CUSTOMER RETAIL
						OWNER/
At December 31, 2021	WHOLESALE	RETAIL		FLEET		OPERATOR		TOTAL
Amortized cost basis with a specific reserve				$	40.3	$	5.7	$	46.0
Amortized cost basis with no specific reserve		$	1.1		4.7				5.8
Total		$	1.1	$	45.0	$	5.7	$	51.8

Interest Income Recognized on Cash Basis for Finance Receivables that are on Non-Accrual Status

Interest income recognized on a cash basis for finance receivables that are on non-accrual status was as follows:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
Dealer:
Retail					$	.1	$	.1
Customer retail:
Fleet	$	.6	$	.7		2.0		2.4
Owner/operator		.1		.2		.2		.4
	$	.7	$	.9	$	2.3	$	2.9

Pre- and Post-Modification Amortized Cost Basis Balances by Portfolio Class

At modification date, the pre-modification and post-modification amortized cost basis balances for finance receivables modified during the period by portfolio class are as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2022				September 30, 2022
	AMORTIZED COST BASIS				AMORTIZED COST BASIS
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	1.6	$	1.6	$	9.7	$	9.7

	Three Months Ended				Nine Months Ended
	September 30, 2021				September 30, 2021
	AMORTIZED COST BASIS				AMORTIZED COST BASIS
	PRE- MODIFICATION		POST- MODIFICATION		PRE- MODIFICATION		POST- MODIFICATION
Fleet	$	1.0	$	1.0	$	5.8	$	5.7
Owner/operator						1.0		1.0
	$	1.0	$	1.0	$	6.8	$	6.7

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Product Support Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

Changes in Product Support Liabilities, Warranty Reserves

WARRANTY RESERVES	2022			2021
Balance at January 1	$	344.3		$	389.7
Cost accruals		269.4			218.9
Payments		(302.9	)		(309.7	)
Change in estimates for pre-existing warranties		80.6			43.4
Currency translation and other		(23.2	)		(5.0	)
Balance at September 30	$	368.2		$	337.3

Changes in Deferred Revenues on Extended Warranties and R&M Contracts

DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS		2022			2021
Balance at January 1	$	775.2		$	795.8
Deferred revenues		439.7			350.7
Revenues recognized		(352.7	)		(363.8	)
Currency translation		(56.7	)		(15.5	)
Balance at September 30	$	805.5		$	767.2

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Components of Comprehensive Income, Net of Related Tax

The components of comprehensive income are as follow:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
Net income	$	769.4		$	380.5		$	2,090.3		$	1,346.8
Other comprehensive income (loss) (OCI):
Unrealized gains on derivative contracts		24.3			8.2			61.4			29.4
Tax effect		(6.3	)		(1.6	)		(17.2	)		(7.6	)
		18.0			6.6			44.2			21.8
Unrealized losses on marketable debt securities		(22.7	)		(3.4	)		(67.2	)		(12.2	)
Tax effect		5.5			.7			16.6			2.9
		(17.2	)		(2.7	)		(50.6	)		(9.3	)
Pension plans		20.2			22.7			50.4			49.0
Tax effect		(5.1	)		(5.4	)		(12.6	)		(11.6	)
		15.1			17.3			37.8			37.4
Foreign currency translation losses		(297.3	)		(136.8	)		(503.4	)		(144.8	)
Net other comprehensive loss		(281.4	)		(115.6	)		(472.0	)		(94.9	)
Comprehensive income	$	488.0		$	264.9		$	1,618.3		$	1,251.9

Changes in Accumulated Other Comprehensive Income (loss) by Component

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

Three Months Ended September 30, 2022	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at July 1, 2022	$	12.7		$	(34.5	)	$	(247.1	)	$	(842.8	)	$	(1,111.7	)
Recorded into AOCI		56.2			(16.9	)		9.5			(297.3	)		(248.5	)
Reclassified out of AOCI		(38.2	)		(.3	)		5.6						(32.9	)
Net other comprehensive income (loss)		18.0			(17.2	)		15.1			(297.3	)		(281.4	)
Balance at September 30, 2022	$	30.7		$	(51.7	)	$	(232.0	)	$	(1,140.1	)	$	(1,393.1	)

Three Months Ended September 30, 2021	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at July 1, 2021	$	(14.0	)	$	8.0		$	(558.0	)	$	(465.6	)	$	(1,029.6	)
Recorded into AOCI		35.3			(2.5	)		6.1			(136.8	)		(97.9	)
Reclassified out of AOCI		(28.7	)		(.2	)		11.2						(17.7	)
Net other comprehensive income (loss)		6.6			(2.7	)		17.3			(136.8	)		(115.6	)
Balance at September 30, 2021	$	(7.4	)	$	5.3		$	(540.7	)	$	(602.4	)	$	(1,145.2	)

Nine Months Ended September 30, 2022	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2022	$	(13.5	)	$	(1.1	)	$	(269.8	)	$	(636.7	)	$	(921.1	)
Recorded into AOCI		90.7			(50.0	)		20.9			(503.4	)		(441.8	)
Reclassified out of AOCI		(46.5	)		(.6	)		16.9						(30.2	)
Net other comprehensive income (loss)		44.2			(50.6	)		37.8			(503.4	)		(472.0	)
Balance at September 30, 2022	$	30.7		$	(51.7	)	$	(232.0	)	$	(1,140.1	)	$	(1,393.1	)

Nine Months Ended September 30, 2021	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2021	$	(29.2	)	$	14.6		$	(578.1	)	$	(457.6	)	$	(1,050.3	)
Recorded into AOCI		42.8			(8.2	)		3.3			(144.8	)		(106.9	)
Reclassified out of AOCI		(21.0	)		(1.1	)		34.1						12.0
Net other comprehensive income (loss)		21.8			(9.3	)		37.4			(144.8	)		(94.9	)
Balance at September 30, 2021	$	(7.4	)	$	5.3		$	(540.7	)	$	(602.4	)	$	(1,145.2	)

Reclassifications Out of Accumulated Other Comprehensive Income

Reclassifications out of AOCI were as follows:

		Three Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	September 30
AOCI COMPONENTS	COMPREHENSIVE INCOME		2022			2021
Unrealized losses (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	2.0		$	1.3
	Cost of sales and revenues		(6.2	)		(3.5	)
	Interest and other (income), net		3.9			(.5	)
Commodity contracts	Cost of sales and revenues		7.0
Financial Services
Foreign-exchange contracts	Interest and other borrowing expenses		(3.0	)
Interest-rate contracts	Interest and other borrowing expenses		(56.2	)		(35.4	)
	Pre-tax expense reduction		(52.5	)		(38.1	)
	Tax expense		14.3			9.4
	After-tax expense reduction		(38.2	)		(28.7	)
Unrealized gains 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	Interest and other (income), net		7.1			14.7
Prior service costs	Interest and other (income), net		.2			.2
	Pre-tax expense increase		7.3			14.9
	Tax benefit		(1.7	)		(3.7	)
	After-tax expense increase		5.6			11.2
Total reclassifications out of AOCI		$	(32.9	)	$	(17.7	)

		Nine Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	September 30
AOCI COMPONENTS	COMPREHENSIVE INCOME		2022			2021
Unrealized losses (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	17.1		$	14.9
	Cost of sales and revenues		(3.5	)		2.5
	Interest and other (income), net		8.8			(.2	)
Commodity contracts	Cost of sales and revenues		17.4
Financial Services
Foreign-exchange contracts	Interest and other borrowing expenses		(7.6	)
Interest-rate contracts	Interest and other borrowing expenses		(99.3	)		(45.9	)
	Pre-tax expense reduction		(67.1	)		(28.7	)
	Tax expense		20.6			7.7
	After-tax expense reduction		(46.5	)		(21.0	)
Unrealized gains on marketable debt securities:
Marketable debt securities	Investment income		(.8	)		(1.5	)
	Tax expense		.2			.4
	After-tax income increase		(.6	)		(1.1	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Interest and other (income), net		21.7			44.2
Prior service costs	Interest and other (income), net		.5			.6
	Pre-tax expense increase		22.2			44.8
	Tax benefit		(5.3	)		(10.7	)
	After-tax expense increase		16.9			34.1
Total reclassifications out of AOCI		$	(30.2	)	$	12.0

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting Information by Segment

	Three Months Ended						Nine Months Ended
	September 30						September 30
		2022			2021			2022			2021
Net sales and revenues:
Truck	$	5,389.8		$	3,583.2		$	15,724.8		$	12,277.6
Less intersegment		(191.6	)		(130.6	)		(493.1	)		(439.8	)
External customers		5,198.2			3,452.6			15,231.7			11,837.8
Parts		1,487.3			1,275.2			4,343.2			3,677.8
Less intersegment		(15.8	)		(15.0	)		(48.1	)		(45.6	)
External customers		1,471.5			1,260.2			4,295.1			3,632.2
Other		17.3			24.9			52.8			68.8
		6,687.0			4,737.7			19,579.6			15,538.8
Financial Services		371.9			409.1			1,110.6			1,297.4
	$	7,058.9		$	5,146.8		$	20,690.2		$	16,836.2
Income before income taxes:
Truck	$	430.5		$	80.4		$	1,129.3		$	606.9
Parts		373.6			282.1			1,067.1			800.5
Other		8.0			3.0			14.9			13.9
		812.1			365.5			2,211.3			1,421.3
Financial Services		146.2			120.1			437.6			303.0
Investment (loss) income		21.4			1.6			24.3			11.5
	$	979.7		$	487.2		$	2,673.2		$	1,735.8
Depreciation and amortization:
Truck	$	86.3		$	63.5		$	235.6		$	204.2
Parts		3.5			2.8			10.0			8.6
Other		6.0			5.3			17.9			16.0
		95.8			71.6			263.5			228.8
Financial Services		107.2			138.3			322.1			463.5
	$	203.0		$	209.9		$	585.6		$	692.3

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Balance Sheet Classifications, Fair Value, Gross and Pro-Forma Net Amounts of Derivative Financial Instruments

The following table presents the balance sheet classification, fair value, gross and pro forma net amounts of derivative financial instruments:

	September 30, 2022						December 31, 2021
	ASSETS			LIABILITIES			ASSETS			LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	131.1					$	30.8
Deferred taxes and other liabilities				$	62.6					$	54.4
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		101.0						25.3
Accounts payable, accrued expenses and other					5.2						15.8
Financial Services:
Other current assets		3.9						2.5
Deferred taxes and other liabilities					3.9						.1
Commodity contracts:
Truck, Parts and Other:
Accounts payable, accrued expenses and other					11.2						16.9
	$	236.0		$	82.9		$	58.6		$	87.2
Derivatives not designated as hedging instruments:
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	1.8					$	1.0
Accounts payable, accrued expenses and other				$	1.1					$	1.1
Financial Services:
Other assets		.2						.1
Deferred taxes and other liabilities					.2						.2
	$	2.0		$	1.3		$	1.1		$	1.3
Gross amounts recognized in Balance Sheets	$	238.0		$	84.2		$	59.7		$	88.5
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts	$	(3.5	)	$	(3.5	)	$	(2.7	)	$	(2.7	)
Financial Services:
Foreign-exchange contracts								(.2	)		(.2	)
Interest-rate contracts		(17.7	)		(17.7	)		(12.8	)		(12.8	)
Pro forma net amount	$	216.8		$	63.0		$	44.0		$	72.8

Amount of Loss (Gain) from Derivative Financial Instruments Recorded in Consolidated Statements of Comprehensive Income

The following table presents the amount of loss (gain) from derivative financial instruments recorded in the Consolidated Statements of Comprehensive Income:

	Three Months Ended						Nine Months Ended
	September 30, 2022						September 30, 2022
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE
Truck, Parts and Other:
Net sales and revenues
Cash flow hedges				$	2.0					$	17.1
Cost of sales and revenues
Cash flow hedges					(6.2	)					(3.5	)
Derivatives not designated as hedging instruments					.4						.3
Interest and other (income), net
Cash flow hedges					3.9						8.8
Net investment hedges					(1.4	)					(4.2	)
Derivatives not designated as hedging instruments					(5.8	)					(4.5	)
				$	(7.1	)				$	14.0
Financial Services:
Interest and other borrowing expenses
Cash flow hedges	$	(56.2	)	$	(3.0	)	$	(99.3	)	$	(7.6	)
Fair value hedges		(.2	)					(.1	)
Derivatives not designated as hedging instruments					2.9						3.1
	$	(56.4	)	$	(.1	)	$	(99.4	)	$	(4.5	)
Total	$	(56.4	)	$	(7.2	)	$	(99.4	)	$	9.5

	Three Months Ended						Nine Months Ended
	September 30, 2021						September 30, 2021
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE
Truck, Parts and Other:
Net sales and revenues
Cash flow hedges				$	1.3					$	14.9
Cost of sales and revenues
Cash flow hedges					(3.5	)					2.5
Derivatives not designated as hedging instruments					17.8						8.8
Interest and other (income), net
Cash flow hedges					(.5	)					(.2	)
Net investment hedges					(.7	)					(2.4	)
Derivatives not designated as hedging instruments					(.6	)					1.0
				$	13.8					$	24.6
Financial Services:
Interest and other borrowing expenses
Cash flow hedges	$	(35.4	)				$	(45.9	)
Fair value hedges								.1
Derivatives not designated as hedging instruments				$	(.3	)				$	(.7	)
	$	(35.4	)	$	(.3	)	$	(45.8	)	$	(.7	)
Total	$	(35.4	)	$	13.5		$	(45.8	)	$	23.9

Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges

The following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

	September 30		December 31
	2022		2021
Financial Services
Term notes:
Carrying amount of the hedged liabilities	$	329.3	$	472.0
Cumulative basis adjustment included in the carrying amount		28.6		8.7

Pre-Tax Effects of Gain (Loss) Derivative Instruments Recognized in OCI

The following tables presents the pre-tax effects of gain (loss) on cash flow hedges recognized in other comprehensive income (loss) (OCI):

	Three Months Ended								Nine Months Ended
	September 30, 2022								September 30, 2022
	INTEREST-		FOREIGN-						INTEREST-		FOREIGN-
	RATE		EXCHANGE			COMMODITY			RATE		EXCHANGE			COMMODITY
Gain (loss) recognized in OCI:
Truck, Parts and Other			$	35.4		$	(7.9	)			$	35.5		$	(15.7	)
Financial Services	$	49.4		(.1	)				$	109.1		(.4	)
	$	49.4	$	35.3		$	(7.9	)	$	109.1	$	35.1		$	(15.7	)
	Three Months Ended								Nine Months Ended
	September 30, 2021								September 30, 2021
	INTEREST-		FOREIGN-						INTEREST-		FOREIGN-
	RATE		EXCHANGE			COMMODITY			RATE		EXCHANGE			COMMODITY
Gain (loss) recognized in OCI:
Truck, Parts and Other			$	2.3		$	(9.8	)			$	(6.7	)	$	(9.8	)
Financial Services	$	43.4		.6					$	67.1		(2.3	)
	$	43.4	$	2.9		$	(9.8	)	$	67.1	$	(9.0	)	$	(9.8	)

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Subject to Recurring Fair Value Measurements

The Company’s assets and liabilities subject to recurring fair value measurements are either Level 1 or Level 2 as follows:

At September 30, 2022	LEVEL 1		LEVEL 2		TOTAL
Assets:
Marketable debt securities
U.S. tax-exempt securities			$	442.9	$	442.9
U.S. taxable municipal / non-U.S. provincial bonds				176.1		176.1
U.S. corporate securities				235.5		235.5
U.S. government and agency securities	$	109.0				109.0
Non-U.S. corporate securities				408.3		408.3
Non-U.S. government securities				70.1		70.1
Other debt securities				99.8		99.8
Total marketable debt securities	$	109.0	$	1,432.7	$	1,541.7
Marketable equity securities	$	2.5			$	2.5
Total marketable securities	$	111.5	$	1,432.7	$	1,544.2
Derivatives
Cross currency swaps			$	119.1	$	119.1
Interest-rate swaps				12.0		12.0
Foreign-exchange contracts				106.9		106.9
Total derivative assets			$	238.0	$	238.0
Liabilities:
Derivatives
Cross currency swaps			$	34.1	$	34.1
Interest-rate swaps				28.5		28.5
Foreign-exchange contracts				10.4		10.4
Commodity contracts				11.2		11.2
Total derivative liabilities			$	84.2	$	84.2

At December 31, 2021	LEVEL 1		LEVEL 2		TOTAL
Assets:
Marketable debt securities
U.S. tax-exempt securities			$	432.5	$	432.5
U.S. taxable municipal / non-U.S. provincial bonds				191.6		191.6
U.S. corporate securities				207.4		207.4
U.S. government and agency securities	$	96.4				96.4
Non-U.S. corporate securities				442.8		442.8
Non-U.S. government securities				75.0		75.0
Other debt securities				100.0		100.0
Total marketable debt securities	$	96.4	$	1,449.3	$	1,545.7
Marketable equity securities	$	13.7			$	13.7
Total marketable securities	$	110.1	$	1,449.3	$	1,559.4
Derivatives
Cross currency swaps			$	18.2	$	18.2
Interest-rate swaps				12.6		12.6
Foreign-exchange contracts				28.9		28.9
Total derivative assets			$	59.7	$	59.7
Liabilities:
Derivatives
Cross currency swaps			$	33.1	$	33.1
Interest-rate swaps				21.3		21.3
Foreign-exchange contracts				17.2		17.2
Commodity contracts				16.9		16.9
Total derivative liabilities			$	88.5	$	88.5

Carrying Amount and Fair Value of Financial Services Fixed-Rate Loans and Fixed-Rate Debt

The Company’s estimate of fair value for fixed rate loans and debt that are not carried at fair value was as follows:

	September 30, 2022				December 31, 2021
	CARRYING		FAIR		CARRYING		FAIR
	AMOUNT		VALUE		AMOUNT		VALUE
Assets:
Financial Services fixed rate loans	$	6,399.8	$	6,115.0	$	6,011.7	$	6,018.2
Liabilities:
Financial Services fixed rate debt		7,046.1		6,681.2		6,905.7		6,935.1

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Components of Net Pension Expense

The following information details the components of net pension expense for the Company’s defined benefit plans:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2022			2021			2022			2021
Service cost	$	37.7		$	37.6		$	113.5		$	113.0
Interest on projected benefit obligation		21.0			16.7			63.9			50.0
Expected return on assets		(53.2	)		(51.1	)		(162.0	)		(153.4	)
Amortization of prior service costs		.2			.2			.5			.6
Recognized actuarial loss		7.1			14.7			21.7			44.2
Net pension expense	$	12.8		$	18.1		$	37.6		$	54.4

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Dilutive and Antidilutive Options (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Additional shares	463,000	519,900	485,600	678,000
Antidilutive options	1,091,300	580,400	1,100,300	583,600

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Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021	Jan. 01, 2021	Dec. 31, 2020
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Percentage of inventories valued using LIFO method of accounting	41.00%
Retained earnings	$ 13,760.8	$ 12,025.8
ASU 2022-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update adoption date	Jan. 01, 2022
Change in accounting principle, accounting standards update, immaterial effect [true false]	true
ASU 2021-10
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update adoption date	Jan. 01, 2022
Change in accounting principle, accounting standards update, immaterial effect [true false]	true
ASU 2021-05
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update adoption date	Jan. 01, 2023
Change in accounting principle, accounting standards update, immaterial effect [true false]	true
ASU 2022-03
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle, accounting standards update adoption date	Jan. 01, 2024
Change in accounting principle, accounting standards update, immaterial effect [true false]	true
Adjustment
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Retained earnings		$ 156.6
Cumulative Effect of Change in Accounting Principle | Adjustment
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Retained earnings			$ 11,148.5	$ 143.3

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Cumulative Effect of Change in Consolidated Income Statement (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cost of sales and revenues		$ 4,176.2		$ 13,525.3
Income taxes	$ 210.3	106.7	$ 582.9	389.0
Net income	$ 769.4	380.5	$ 2,090.3	1,346.8
Originally Reported
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cost of sales and revenues		4,180.1		13,533.5
Income taxes		105.6		386.9
Net income		377.7		1,340.7
Adjustment
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cost of sales and revenues		(3.9)		(8.2)
Income taxes		1.1		2.1
Net income		$ 2.8		$ 6.1

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Cumulative Effect of Change in Consolidated Balance Sheet (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Inventories, net		$ 1,976.0
Other liabilities		1,487.6
Retained earnings	$ 13,760.8	12,025.8
Originally Reported
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Inventories, net		1,768.3
Other liabilities		1,436.5
Retained earnings		11,869.2
Adjustment
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Inventories, net		207.7
Other liabilities		51.1
Retained earnings		$ 156.6

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Compare Currently Reported Amounts and Reported Under LIFO in Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cost of sales and revenues		$ 4,176.2		$ 13,525.3
Income taxes	$ 210.3	106.7	$ 582.9	389.0
Net income	$ 769.4	$ 380.5	$ 2,090.3	$ 1,346.8
Net Income Per Share
Basic	$ 2.21	$ 1.09	$ 6.00	$ 3.87
Diluted	$ 2.21	$ 1.09	$ 5.99	$ 3.87
Truck, Parts and Other
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cost of sales and revenues	$ 5,689.3		$ 16,785.8
Income taxes	210.3		582.9
Net income	$ 769.4		$ 2,090.3
Net Income Per Share
Basic	$ 2.21		$ 6.00
Diluted	$ 2.21		$ 5.99
Pro Forma Under LIFO | Truck, Parts and Other
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cost of sales and revenues	$ 5,699.1		$ 16,821.5
Income taxes	207.9		574.1
Net income	$ 762.0		$ 2,063.4
Net Income Per Share
Basic	$ 2.19		$ 5.92
Diluted	$ 2.18		$ 5.91
Adjustment
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cost of sales and revenues		$ (3.9)		$ (8.2)
Income taxes		1.1		2.1
Net income		$ 2.8		$ 6.1
Adjustment | Truck, Parts and Other
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Cost of sales and revenues	$ (9.8)		$ (35.7)
Income taxes	2.4		8.8
Net income	$ 7.4		$ 26.9
Net Income Per Share
Basic	$ 0.02		$ 0.08
Diluted	$ 0.03		$ 0.08

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Compare Currently Reported Amounts and Reported Under LIFO in Consolidated Balance Sheet (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Inventories, net		$ 1,976.0
Retained earnings	$ 13,760.8	12,025.8
Truck, Parts and Other
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Inventories, net	2,382.1	1,976.0
Accounts payable, accrued expenses and other	4,381.8
Retained earnings	13,760.8
Pro Forma Under LIFO | Truck, Parts and Other
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Inventories, net	2,138.7
Accounts payable, accrued expenses and other	4,321.9
Retained earnings	13,577.3
Adjustment
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Inventories, net		207.7
Retained earnings		$ 156.6
Adjustment | Truck, Parts and Other
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Inventories, net	243.4
Accounts payable, accrued expenses and other	59.9
Retained earnings	$ 183.5

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Schedule of Revenues by Major Sources (Detail) - Truck, Parts and Other - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Entity Wide Information Revenue From External Customer [Line Items]
Total sales and revenues	$ 6,687.0	$ 4,737.7	$ 19,579.6	$ 15,538.8
Trucks
Entity Wide Information Revenue From External Customer [Line Items]
Total sales and revenues	5,198.2	3,452.6	15,231.7	11,837.8
Trucks | Truck Sales
Entity Wide Information Revenue From External Customer [Line Items]
Total sales and revenues	4,991.4	3,258.3	14,602.7	11,253.7
Trucks | Revenues from extended warranties, operating leases and other
Entity Wide Information Revenue From External Customer [Line Items]
Total sales and revenues	206.8	194.3	629.0	584.1
Parts Subsegment
Entity Wide Information Revenue From External Customer [Line Items]
Total sales and revenues	1,471.5	1,260.2	4,295.1	3,632.2
Parts Subsegment | Parts
Entity Wide Information Revenue From External Customer [Line Items]
Total sales and revenues	1,429.3	1,226.1	4,171.9	3,528.1
Parts Subsegment | Revenues from dealer services and other
Entity Wide Information Revenue From External Customer [Line Items]
Total sales and revenues	42.2	34.1	123.2	104.1
Winch Sales and Other
Entity Wide Information Revenue From External Customer [Line Items]
Total sales and revenues	$ 17.3	$ 24.9	$ 52.8	$ 68.8

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Sales and Revenues - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Entity Wide Information Revenue From External Customer [Line Items]
Term used to calculate historical weighted average return rate			8 years
Payment to acquire commitment value			$ 934,300,000
Payment to acquire commitment related to lease value			174,300,000
Financial Services
Entity Wide Information Revenue From External Customer [Line Items]
Total Operating lease revenue	$ 192,400,000	$ 206,400,000	595,700,000	$ 627,900,000
Financing receivable, recorded investment, 90 days past due and still accruing	0		0		$ 0
Trucks | Truck Sales
Entity Wide Information Revenue From External Customer [Line Items]
Total Operating lease revenue	29,300,000	$ 24,900,000	79,200,000	$ 75,200,000
Deferred revenue	52,700,000		52,700,000
Deferred revenue recognize, in 2022	7,600,000		7,600,000
Deferred revenue recognize, in 2023	24,300,000		24,300,000
Deferred revenue recognize, in 2024	13,100,000		13,100,000
Deferred revenue recognize, in 2025	4,800,000		4,800,000
Deferred revenue recognize, in 2026	$ 2,900,000		$ 2,900,000
Minimum
Entity Wide Information Revenue From External Customer [Line Items]
Lease and guarantee periods (in years)			3 years
Minimum | Financial Services
Entity Wide Information Revenue From External Customer [Line Items]
Finance leases, lease term			3 years
Operating lease term	3 years		3 years
Maximum
Entity Wide Information Revenue From External Customer [Line Items]
Lease and guarantee periods (in years)			5 years
Warranty period			5 years
Maximum | Financial Services
Entity Wide Information Revenue From External Customer [Line Items]
Finance leases, lease term			5 years
Operating lease term	5 years		5 years

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Estimated Value of Returned Goods Assets and Related Return Liabilities (Detail) - Truck, Parts and Other - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Trucks
Entity Wide Information Revenue From External Customer [Line Items]
Other current assets	$ 177.8	$ 255.7
Accounts payable, accrued expenses and other	180.5	264.0
Other noncurrent assets, net	290.8	403.6
Other liabilities	304.9	423.9
Assets	468.6	659.3
Liabilities	485.4	687.9
Parts Subsegment
Entity Wide Information Revenue From External Customer [Line Items]
Accounts payable, accrued expenses and other	193.5	172.1
Other noncurrent assets, net	82.0	72.9
Assets	82.0	72.9
Liabilities	$ 193.5	$ 172.1

XML

Summary of Financial Services Lease Revenues by Lease Type (Detail) - Financial Services - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Entity Wide Information Revenue From External Customer [Line Items]
Finance lease revenues	$ 46.6	$ 46.7	$ 134.5	$ 142.8
Operating lease revenues	192.4	206.4	595.7	627.9
Total lease revenues	$ 239.0	$ 253.1	$ 730.2	$ 770.7

XML

Marketable Securities (Detail) - Truck, Parts and Other - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Available For Sale Securities [Line Items]
Marketable debt securities, Cost	$ 1,610.5
Marketable debt securities, Fair Value	1,541.7
Marketable equity securities, Cost	15.4	$ 15.4
Marketable equity securities, Unrealized Gains		1.3
Marketable equity securities, Unrealized Losses	12.9	3.0
Marketable equity securities, Fair Value	2.5	13.7
Total marketable securities, Cost	1,625.9	1,562.7
Total marketable securities, Unrealized Gains		6.4
Total marketable securities, Unrealized Losses	81.7	9.7
Total marketable securities, Fair Value	1,544.2	1,559.4
U.S. tax-exempt securities
Schedule Of Available For Sale Securities [Line Items]
Marketable debt securities, Cost	455.5	431.4
Marketable debt securities, Unrealized Gains		1.5
Marketable debt securities, Unrealized Losses	12.6	0.4
Marketable debt securities, Fair Value	442.9	432.5
U.S. corporate securities
Schedule Of Available For Sale Securities [Line Items]
Marketable debt securities, Cost	249.3	208.3
Marketable debt securities, Unrealized Gains		0.6
Marketable debt securities, Unrealized Losses	13.8	1.5
Marketable debt securities, Fair Value	235.5	207.4
U.S. taxable municipal / non-U.S. provincial bonds
Schedule Of Available For Sale Securities [Line Items]
Marketable debt securities, Cost	187.5	192.2
Marketable debt securities, Unrealized Gains		0.6
Marketable debt securities, Unrealized Losses	11.4	1.2
Marketable debt securities, Fair Value	176.1	191.6
U.S. government and agency securities
Schedule Of Available For Sale Securities [Line Items]
Marketable debt securities, Cost	112.3	95.9
Marketable debt securities, Unrealized Gains		0.6
Marketable debt securities, Unrealized Losses	3.3	0.1
Marketable debt securities, Fair Value	109.0	96.4
Non-U.S. corporate securities
Schedule Of Available For Sale Securities [Line Items]
Marketable debt securities, Cost	428.0	443.9
Marketable debt securities, Unrealized Gains		1.4
Marketable debt securities, Unrealized Losses	19.7	2.5
Marketable debt securities, Fair Value	408.3	442.8
Non-U.S. government securities
Schedule Of Available For Sale Securities [Line Items]
Marketable debt securities, Cost	73.1	75.2
Marketable debt securities, Unrealized Gains		0.1
Marketable debt securities, Unrealized Losses	3.0	0.3
Marketable debt securities, Fair Value	70.1	75.0
Other debt securities
Schedule Of Available For Sale Securities [Line Items]
Marketable debt securities, Cost	104.8	100.4
Marketable debt securities, Unrealized Gains		0.3
Marketable debt securities, Unrealized Losses	5.0	0.7
Marketable debt securities, Fair Value	$ 99.8	$ 100.0

XML

Investments in Marketable Securities - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Schedule Of Available For Sale Securities [Line Items]
Allowance for credit losses	$ 0		$ 0
Truck, Parts and Other
Schedule Of Available For Sale Securities [Line Items]
Gross realized gains from sales of marketable debt securities	500,000	$ 1,600,000
Gross realized loss from sales of marketable debt securities	$ 1,500,000	$ 100,000

XML

Marketable Debt Securities Continuous Unrealized Losses (Detail) - Truck, Parts and Other - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Available For Sale Securities [Line Items]
Less than 12 Months Fair Value	$ 1,231.6	$ 911.2
Less than 12 Months Unrealized Losses	47.4	6.7
12 Months or Greater Fair value	281.0	$ 1.3
12 Months or Greater Unrealized losses	$ 21.4

XML

Contractual Maturities of Marketable Debt Securities (Detail) - Truck, Parts and Other $ in Millions	Sep. 30, 2022 USD ($)
Amortized Cost Maturities:
Within one year	$ 448.4
One to five years	1,139.6
Six to ten years	9.0
More than ten years	13.5
Marketable debt securities, Cost	1,610.5
Fair Value Maturities:
Within one year	442.4
One to five years	1,078.6
Six to ten years	8.9
More than ten years	11.8
Fair Value	$ 1,541.7

XML

Inventories (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Inventory [Line Items]
Inventories, net		$ 1,976.0
Truck, Parts and Other
Inventory [Line Items]
Finished products	$ 826.5	676.0
Work in process and raw materials	1,555.6	1,300.0
Inventories, net	$ 2,382.1	$ 1,976.0

XML

Finance and Other Receivables (Detail) - USD ($) $ in Millions		Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Financial Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans		$ 6,750.4	$ 6,424.7
Finance leases		3,472.4	3,620.6
Dealer wholesale financing		2,307.8	1,865.8
Operating lease receivables and other		136.5	126.6
Finance and other receivables, net of deferred income		12,667.1	12,037.7
Less allowance for losses		(117.9)	(116.9)	$ (121.7)	$ (127.0)
Finance and other receivables, net		12,549.2	11,920.8
Loans and Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for losses		(111.3)	(111.5)
Dealer | Wholesale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for losses		(3.5)	(3.3)
Dealer | Wholesale | Financial Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for losses		(3.5)	(3.3)	(2.4)	(3.4)
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for losses		(3.1)	(2.1)
Other | Financial Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Less allowance for losses	[1]	$ (3.1)	$ (2.1)	$ (3.4)	$ (3.2)

[1] Operating leases and other trade receivables.

XML

Finance and Other Receivables - Additional Information (Detail) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 44,300,000		$ 27,700,000
Loans accounted for as troubled debt restructurings	34,200,000		41,600,000
TDRs subsequently defaulted, amount	800,000
TDRs charged-off during the period	0	0
Repossessed inventory	6,100,000		$ 4,700,000
Proceeds from the sales of repossessed assets	$ 16,100,000	$ 33,900,000
Financial Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Months contractual terms extended	3 months		4 months
Financial Services | Loans and Leases | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual terms of retails loans and finance leases	3 years
Financial Services | Loans and Leases | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual terms of retails loans and finance leases	5 years
Financial Services | Financing Receivable | Maximum | Revenue Benchmark | Customer Concentration Risk
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of portfolio assets	5.00%

XML

Allowance for Credit Losses (Detail) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision for losses		$ 3.8	$ 3.2
Dealer | Wholesale
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		3.3
Ending Balance		3.5
Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		2.1
Ending Balance		3.1
Financial Services
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		116.9	127.0
Provision for losses		3.8	3.2
Charge-offs		(6.4)	(11.0)
Recoveries		7.1	4.3
Currency translation and other		(3.5)	(1.8)
Ending Balance		117.9	121.7
Financial Services | Dealer | Wholesale
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		3.3	3.4
Provision for losses		0.4	(1.0)
Recoveries		0.1
Currency translation and other		(0.3)
Ending Balance		3.5	2.4
Financial Services | Dealer | Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		7.1	8.4
Provision for losses		(3.3)	(0.7)
Ending Balance		3.8	7.7
Financial Services | Customer Retail
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		104.4	112.0
Provision for losses		8.1	3.5
Charge-offs		(6.3)	(9.7)
Recoveries		5.2	4.1
Currency translation and other		(3.9)	(1.7)
Ending Balance		107.5	108.2
Financial Services | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	[1]	2.1	3.2
Provision for losses	[1]	(1.4)	1.4
Charge-offs	[1]	(0.1)	(1.3)
Recoveries	[1]	1.8	0.2
Currency translation and other	[1]	0.7	(0.1)
Ending Balance	[1]	$ 3.1	$ 3.4

[1] Operating leases and other trade receivables.

XML

Amortized Cost Basis of Finance Receivables by Credit Quality Indicator and Portfolio Class (Detail) - Financial Services - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Loans	$ 2,504.8	$ 2,067.7
Financed Receivables, By Origination Year, Current Fiscal Year	3,239.1	3,914.5
Financing Receivable, Originated One Year before Current Fiscal Year	2,967.7	2,639.0
Financing Receivable, Originated Two Years before Current Fiscal Year	1,936.5	1,808.4
Financing Receivable, Originated Three Years before Current Fiscal Year	1,126.6	923.3
Financing Receivable, Originated Four Years before Current Fiscal Year	463.9	382.8
Financed Receivables, By Origination Year, Prior	292.0	175.4
Finance Receivables, Total	12,530.6	11,911.1
Dealer
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Loans	2,504.8	2,067.7
Financed Receivables, By Origination Year, Current Fiscal Year	374.2	441.4
Financing Receivable, Originated One Year before Current Fiscal Year	371.3	319.0
Financing Receivable, Originated Two Years before Current Fiscal Year	239.7	320.8
Financing Receivable, Originated Three Years before Current Fiscal Year	263.3	180.6
Financing Receivable, Originated Four Years before Current Fiscal Year	133.1	119.3
Financed Receivables, By Origination Year, Prior	141.1	98.0
Finance Receivables, Total	4,027.5	3,546.8
Dealer | Wholesale
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Loans	2,307.8	1,865.8
Finance Receivables, Total	2,307.8	1,865.8
Dealer | Wholesale | Performing
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Loans	2,304.8	1,859.7
Finance Receivables, Total	2,304.8	1,859.7
Dealer | Wholesale | Watch
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Loans	3.0	6.1
Finance Receivables, Total	3.0	6.1
Dealer | Retail
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Loans	197.0	201.9
Financed Receivables, By Origination Year, Current Fiscal Year	374.2	441.4
Financing Receivable, Originated One Year before Current Fiscal Year	371.3	319.0
Financing Receivable, Originated Two Years before Current Fiscal Year	239.7	320.8
Financing Receivable, Originated Three Years before Current Fiscal Year	263.3	180.6
Financing Receivable, Originated Four Years before Current Fiscal Year	133.1	119.3
Financed Receivables, By Origination Year, Prior	141.1	98.0
Finance Receivables, Total	1,719.7	1,681.0
Dealer | Retail | Performing
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Loans	197.0	201.9
Financed Receivables, By Origination Year, Current Fiscal Year	374.2	434.4
Financing Receivable, Originated One Year before Current Fiscal Year	371.3	315.4
Financing Receivable, Originated Two Years before Current Fiscal Year	239.7	311.7
Financing Receivable, Originated Three Years before Current Fiscal Year	263.3	176.0
Financing Receivable, Originated Four Years before Current Fiscal Year	133.1	118.2
Financed Receivables, By Origination Year, Prior	140.3	96.9
Finance Receivables, Total	1,718.9	1,654.5
Dealer | Retail | Watch
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year		7.0
Financing Receivable, Originated One Year before Current Fiscal Year		3.6
Financing Receivable, Originated Two Years before Current Fiscal Year		9.1
Financing Receivable, Originated Three Years before Current Fiscal Year		4.6
Financing Receivable, Originated Four Years before Current Fiscal Year		1.1
Finance Receivables, Total		25.4
Dealer | Retail | At-risk
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Prior	0.8	1.1
Finance Receivables, Total	0.8	1.1
Customer Retail
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	2,864.9	3,473.1
Financing Receivable, Originated One Year before Current Fiscal Year	2,596.4	2,320.0
Financing Receivable, Originated Two Years before Current Fiscal Year	1,696.8	1,487.6
Financing Receivable, Originated Three Years before Current Fiscal Year	863.3	742.7
Financing Receivable, Originated Four Years before Current Fiscal Year	330.8	263.5
Financed Receivables, By Origination Year, Prior	150.9	77.4
Finance Receivables, Total	8,503.1	8,364.3
Customer Retail | Fleet
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	2,477.6	2,860.3
Financing Receivable, Originated One Year before Current Fiscal Year	2,143.8	1,928.3
Financing Receivable, Originated Two Years before Current Fiscal Year	1,421.8	1,257.3
Financing Receivable, Originated Three Years before Current Fiscal Year	726.1	624.3
Financing Receivable, Originated Four Years before Current Fiscal Year	273.8	224.3
Financed Receivables, By Origination Year, Prior	137.2	67.1
Finance Receivables, Total	7,180.3	6,961.6
Customer Retail | Fleet | Performing
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	2,468.8	2,851.7
Financing Receivable, Originated One Year before Current Fiscal Year	2,121.2	1,913.3
Financing Receivable, Originated Two Years before Current Fiscal Year	1,404.3	1,227.0
Financing Receivable, Originated Three Years before Current Fiscal Year	702.3	608.4
Financing Receivable, Originated Four Years before Current Fiscal Year	264.2	220.4
Financed Receivables, By Origination Year, Prior	135.4	66.5
Finance Receivables, Total	7,096.2	6,887.3
Customer Retail | Fleet | Watch
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	2.4	2.6
Financing Receivable, Originated One Year before Current Fiscal Year	6.1	6.5
Financing Receivable, Originated Two Years before Current Fiscal Year	4.5	4.3
Financing Receivable, Originated Three Years before Current Fiscal Year	4.1	5.3
Financing Receivable, Originated Four Years before Current Fiscal Year	2.5	0.6
Financed Receivables, By Origination Year, Prior	0.6	0.2
Finance Receivables, Total	20.2	19.5
Customer Retail | Fleet | At-risk
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	6.4	6.0
Financing Receivable, Originated One Year before Current Fiscal Year	16.5	8.5
Financing Receivable, Originated Two Years before Current Fiscal Year	13.0	26.0
Financing Receivable, Originated Three Years before Current Fiscal Year	19.7	10.6
Financing Receivable, Originated Four Years before Current Fiscal Year	7.1	3.3
Financed Receivables, By Origination Year, Prior	1.2	0.4
Finance Receivables, Total	63.9	54.8
Customer Retail | Owner/Operator
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	387.3	612.8
Financing Receivable, Originated One Year before Current Fiscal Year	452.6	391.7
Financing Receivable, Originated Two Years before Current Fiscal Year	275.0	230.3
Financing Receivable, Originated Three Years before Current Fiscal Year	137.2	118.4
Financing Receivable, Originated Four Years before Current Fiscal Year	57.0	39.2
Financed Receivables, By Origination Year, Prior	13.7	10.3
Finance Receivables, Total	1,322.8	1,402.7
Customer Retail | Owner/Operator | Performing
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	386.3	611.9
Financing Receivable, Originated One Year before Current Fiscal Year	451.4	389.9
Financing Receivable, Originated Two Years before Current Fiscal Year	273.3	228.1
Financing Receivable, Originated Three Years before Current Fiscal Year	135.7	116.0
Financing Receivable, Originated Four Years before Current Fiscal Year	56.0	38.6
Financed Receivables, By Origination Year, Prior	13.6	10.1
Finance Receivables, Total	1,316.3	1,394.6
Customer Retail | Owner/Operator | Watch
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	0.9	0.7
Financing Receivable, Originated One Year before Current Fiscal Year	0.6	0.5
Financing Receivable, Originated Two Years before Current Fiscal Year	0.8	0.7
Financing Receivable, Originated Three Years before Current Fiscal Year	0.4	0.4
Financing Receivable, Originated Four Years before Current Fiscal Year	0.2	0.1
Finance Receivables, Total	2.9	2.4
Customer Retail | Owner/Operator | At-risk
Financing Receivable, Recorded Investment [Line Items]
Financed Receivables, By Origination Year, Current Fiscal Year	0.1	0.2
Financing Receivable, Originated One Year before Current Fiscal Year	0.6	1.3
Financing Receivable, Originated Two Years before Current Fiscal Year	0.9	1.5
Financing Receivable, Originated Three Years before Current Fiscal Year	1.1	2.0
Financing Receivable, Originated Four Years before Current Fiscal Year	0.8	0.5
Financed Receivables, By Origination Year, Prior	0.1	0.2
Finance Receivables, Total	$ 3.6	$ 5.7

XML

Amortized Cost Basis of Financing Receivables by Aging Category (Detail) - Financial Services - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	$ 12,530.6	$ 11,911.1
Current and up to 30 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	12,486.6	11,882.5
31 - 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	11.5	11.5
Greater than 60 days past due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	32.5	17.1
Dealer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	4,027.5	3,546.8
Dealer | Wholesale
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	2,307.8	1,865.8
Dealer | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	1,719.7	1,681.0
Dealer | Current and up to 30 days past due | Wholesale
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	2,307.3	1,865.4
Dealer | Current and up to 30 days past due | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	1,719.7	1,681.0
Dealer | 31 - 60 days past due | Wholesale
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	0.5	0.4
Customer Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	8,503.1	8,364.3
Customer Retail | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	7,180.3	6,961.6
Customer Retail | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	1,322.8	1,402.7
Customer Retail | Current and up to 30 days past due | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	7,142.0	6,939.7
Customer Retail | Current and up to 30 days past due | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	1,317.6	1,396.4
Customer Retail | 31 - 60 days past due | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	8.8	9.3
Customer Retail | 31 - 60 days past due | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	2.2	1.8
Customer Retail | Greater than 60 days past due | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	29.5	12.6
Customer Retail | Greater than 60 days past due | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Finance Receivable	$ 3.0	$ 4.5

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Summary of Non-Accrual Loans and Finance Leases with Specific Reserve and No Specific Reserve (Details) - Financial Services - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	$ 39.9	$ 46.0
Amortized cost basis with no specific reserve	9.1	5.8
Total	49.0	51.8
Dealer | Retail
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with no specific reserve	0.8	1.1
Total	0.8	1.1
Customer Retail | Fleet
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	36.5	40.3
Amortized cost basis with no specific reserve	8.3	4.7
Total	44.8	45.0
Customer Retail | Owner/Operator
Financing Receivable, Recorded Investment, Past Due [Line Items]
Amortized cost basis with a specific reserve	3.4	5.7
Total	$ 3.4	$ 5.7

XML

Interest Income Recognized on Cash Basis for Finance Receivables that are on Non-Accrual Status (Detail) - Financial Services - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income recognized:
Interest income recognized on a cash basis	$ 0.7	$ 0.9	$ 2.3	$ 2.9
Dealer | Retail
Interest income recognized:
Interest income recognized on a cash basis			0.1	0.1
Customer Retail | Fleet
Interest income recognized:
Interest income recognized on a cash basis	0.6	0.7	2.0	2.4
Customer Retail | Owner/Operator
Interest income recognized:
Interest income recognized on a cash basis	$ 0.1	$ 0.2	$ 0.2	$ 0.4

XML

Pre- and Post-Modification Amortized Cost Basis Balances for Finance Receivables Modified by Portfolio Class (Detail) - Financial Services - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Modifications [Line Items]
Pre-Modification, Amortized Cost Basis		$ 1.0		$ 6.8
Post-Modification, Amortized Cost Basis		1.0		6.7
Customer Retail | Fleet
Financing Receivable, Modifications [Line Items]
Pre-Modification, Amortized Cost Basis	$ 1.6	1.0	$ 9.7	5.8
Post-Modification, Amortized Cost Basis	$ 1.6	$ 1.0	$ 9.7	5.7
Customer Retail | Owner/Operator
Financing Receivable, Modifications [Line Items]
Pre-Modification, Amortized Cost Basis				1.0
Post-Modification, Amortized Cost Basis				$ 1.0

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Product Support Liabilities - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Product Warranty Liability [Line Items]
Deferred revenue on extended warranties and R&M recognize, in 2022	$ 70.7
Deferred revenue on extended warranties and R&M recognize, in 2023	245.3
Deferred revenue on extended warranties and R&M recognize, in 2024	232.4
Deferred revenue on extended warranties and R&M recognize, in 2025	142.0
Deferred revenue on extended warranties and R&M recognize, in 2026	78.1
Deferred revenue on extended warranties and R&M recognize, thereafter	$ 37.0
Truck, Parts and Other
Product Warranty Liability [Line Items]
Standard product warranty, description	The Company generally offers one year warranties covering most of its vehicles and related aftermarket parts. For vehicles equipped with engines manufactured by PACCAR, the Company generally offers two year warranties on the engine.
Standard product warranty, term	1 year
Extended product warranty, description	Optional extended warranty and R&M contracts can be purchased for periods which generally range up to five years.
Truck, Parts and Other | Maximum
Product Warranty Liability [Line Items]
Extended product warranty, term	5 years
Truck, Parts and Other | Engines manufactured by PACCAR
Product Warranty Liability [Line Items]
Standard product warranty, term	2 years

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Changes in Product Support Liabilities (Detail) - Truck, Parts and Other - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
WARRANTY RESERVES
Beginning balance	$ 344.3	$ 389.7
Cost accruals	269.4	218.9
Payments	(302.9)	(309.7)
Change in estimates for pre-existing warranties	80.6	43.4
Currency translation and other	(23.2)	(5.0)
Ending balance	368.2	337.3
DEFERRED REVENUES ON EXTENDED WARRANTIES AND R&M CONTRACTS
Beginning balance	775.2	795.8
Deferred revenues	439.7	350.7
Revenues recognized	(352.7)	(363.8)
Currency translation	(56.7)	(15.5)
Ending balance	$ 805.5	$ 767.2

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Components of Comprehensive Income, Net of Related Tax (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 769.4	$ 380.5	$ 2,090.3	$ 1,346.8
Other comprehensive income (loss) (OCI):
Unrealized gains on derivative contracts	24.3	8.2	61.4	29.4
Tax effect	(6.3)	(1.6)	(17.2)	(7.6)
Net current period OCI, unrealized gains (losses) on derivative contracts	18.0	6.6	44.2	21.8
Unrealized losses on marketable debt securities	(22.7)	(3.4)	(67.2)	(12.2)
Tax effect	5.5	0.7	16.6	2.9
Net current period OCI, unrealized gains and (losses) on marketable debt securities	(17.2)	(2.7)	(50.6)	(9.3)
Pension plans	20.2	22.7	50.4	49.0
Tax effect	(5.1)	(5.4)	(12.6)	(11.6)
Net current period OCI, pension plans	15.1	17.3	37.8	37.4
Foreign currency translation losses	(297.3)	(136.8)	(503.4)	(144.8)
Net other comprehensive loss	(281.4)	(115.6)	(472.0)	(94.9)
Comprehensive income	$ 488.0	$ 264.9	$ 1,618.3	$ 1,251.9

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Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 11,594.0
Reclassified out of AOCI	$ (32.9)	$ (17.7)	(30.2)	$ 12.0
Net other comprehensive loss	(281.4)	(115.6)	(472.0)	(94.9)
Ending balance	12,893.5	11,479.8	12,893.5	11,479.8
Derivative Contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	12.7	(14.0)	(13.5)	(29.2)
Recorded into AOCI	56.2	35.3	90.7	42.8
Reclassified out of AOCI	(38.2)	(28.7)	(46.5)	(21.0)
Net other comprehensive loss	18.0	6.6	44.2	21.8
Ending balance	30.7	(7.4)	30.7	(7.4)
Marketable Debt Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(34.5)	8.0	(1.1)	14.6
Recorded into AOCI	(16.9)	(2.5)	(50.0)	(8.2)
Reclassified out of AOCI	(0.3)	(0.2)	(0.6)	(1.1)
Net other comprehensive loss	(17.2)	(2.7)	(50.6)	(9.3)
Ending balance	(51.7)	5.3	(51.7)	5.3
Pension Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(247.1)	(558.0)	(269.8)	(578.1)
Recorded into AOCI	9.5	6.1	20.9	3.3
Reclassified out of AOCI	5.6	11.2	16.9	34.1
Net other comprehensive loss	15.1	17.3	37.8	37.4
Ending balance	(232.0)	(540.7)	(232.0)	(540.7)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(842.8)	(465.6)	(636.7)	(457.6)
Recorded into AOCI	(297.3)	(136.8)	(503.4)	(144.8)
Net other comprehensive loss	(297.3)	(136.8)	(503.4)	(144.8)
Ending balance	(1,140.1)	(602.4)	(1,140.1)	(602.4)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(1,111.7)	(1,029.6)	(921.1)	(1,050.3)
Recorded into AOCI	(248.5)	(97.9)	(441.8)	(106.9)
Reclassified out of AOCI	(32.9)	(17.7)	(30.2)	12.0
Net other comprehensive loss	(281.4)	(115.6)	(472.0)	(94.9)
Ending balance	$ (1,393.1)	$ (1,145.2)	$ (1,393.1)	$ (1,145.2)

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Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of sales and revenues		$ 4,176.2		$ 13,525.3
Income before income taxes	$ (979.7)	(487.2)	$ (2,673.2)	(1,735.8)
Investment income	21.4	1.6	24.3	11.5
Tax (benefit) expense	210.3	106.7	582.9	389.0
Net Income (Loss)	(769.4)	(380.5)	(2,090.3)	(1,346.8)
Total reclassifications out of AOCI	(32.9)	(17.7)	(30.2)	12.0
Derivative Contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications out of AOCI	(38.2)	(28.7)	(46.5)	(21.0)
Derivative Contracts | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income taxes	(52.5)	(38.1)	(67.1)	(28.7)
Tax (benefit) expense	14.3	9.4	20.6	7.7
Net Income (Loss)	(38.2)	(28.7)	(46.5)	(21.0)
Marketable Debt Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications out of AOCI	(0.3)	(0.2)	(0.6)	(1.1)
Marketable Debt Securities | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Investment income	(0.4)	(0.3)	(0.8)	(1.5)
Tax (benefit) expense	0.1	0.1	0.2	0.4
Net Income (Loss)	(0.3)	(0.2)	(0.6)	(1.1)
Truck, Parts and Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net sales and revenues	(6,687.0)	(4,737.7)	(19,579.6)	(15,538.8)
Cost of sales and revenues	5,689.3		16,785.8
Tax (benefit) expense	210.3		582.9
Net Income (Loss)	(769.4)		(2,090.3)
Truck, Parts and Other | Derivative Contracts | Foreign-exchange contracts | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net sales and revenues	2.0	1.3	17.1	14.9
Cost of sales and revenues	(6.2)	(3.5)	(3.5)	2.5
Interest and other (income), net	3.9	(0.5)	8.8	(0.2)
Truck, Parts and Other | Derivative Contracts | Commodity Contract | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net sales and revenues			17.4
Cost of sales and revenues	7.0
Truck, Parts and Other | Actuarial loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest and other (income), net	7.1	14.7	21.7	44.2
Truck, Parts and Other | Prior service costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest and other (income), net	0.2	0.2	0.5	0.6
Truck, Parts and Other | Settlement Loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income taxes	7.3	14.9	22.2	44.8
Tax (benefit) expense	(1.7)	(3.7)	(5.3)	(10.7)
Net Income (Loss)	5.6	11.2	16.9	34.1
Financial Services | Derivative Contracts | Foreign-exchange contracts | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest and other borrowing expenses	(3.0)		(7.6)
Financial Services | Derivative Contracts | Interest-Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest and other borrowing expenses	$ (56.2)	$ (35.4)	$ (99.3)	$ (45.9)

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Stockholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 04, 2018
Equity Class Of Treasury Stock [Line Items]
Stock-based compensation expense	$ 2,600,000	$ 2,600,000	$ 15,100,000	$ 12,000,000.0
Additional common shares issued under deferred and stock compensation arrangements			437,947
Long Term Incentive Plan
Equity Class Of Treasury Stock [Line Items]
Treasury stock purchases, shares			21,853
Common Stock Repurchase Plan
Equity Class Of Treasury Stock [Line Items]
Treasury stock purchases, shares			0
Stock repurchase programs, remaining authorized amount					$ 390,000,000.0
Stock repurchase programs, authorized amount					$ 500,000,000.0

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Income Taxes - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	21.50%	21.90%	21.80%	22.40%

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Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2022 Segment
Segment Reporting [Abstract]
Reportable segments	3

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Segment Reporting Information by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Revenues	$ 7,058.9	$ 5,146.8	$ 20,690.2	$ 16,836.2
Investment income	21.4	1.6	24.3	11.5
Total Income Before Income Taxes	979.7	487.2	2,673.2	1,735.8
Depreciation and amortization	203.0	209.9	585.6	692.3
Truck, Parts and Other
Segment Reporting Information [Line Items]
Net sales and revenues	6,687.0	4,737.7	19,579.6	15,538.8
Revenues	6,687.0	4,737.7	19,579.6	15,538.8
Income before income taxes	812.1	365.5	2,211.3	1,421.3
Depreciation and amortization	95.8	71.6	263.5	228.8
Truck, Parts and Other | Trucks
Segment Reporting Information [Line Items]
Net sales and revenues	5,198.2	3,452.6	15,231.7	11,837.8
Income before income taxes	430.5	80.4	1,129.3	606.9
Depreciation and amortization	86.3	63.5	235.6	204.2
Truck, Parts and Other | Trucks | Operating Segments
Segment Reporting Information [Line Items]
Net sales and revenues	5,389.8	3,583.2	15,724.8	12,277.6
Truck, Parts and Other | Trucks | Intersegment
Segment Reporting Information [Line Items]
Net sales and revenues	(191.6)	(130.6)	(493.1)	(439.8)
Truck, Parts and Other | Parts Subsegment
Segment Reporting Information [Line Items]
Net sales and revenues	1,471.5	1,260.2	4,295.1	3,632.2
Income before income taxes	373.6	282.1	1,067.1	800.5
Depreciation and amortization	3.5	2.8	10.0	8.6
Truck, Parts and Other | Parts Subsegment | Operating Segments
Segment Reporting Information [Line Items]
Net sales and revenues	1,487.3	1,275.2	4,343.2	3,677.8
Truck, Parts and Other | Parts Subsegment | Intersegment
Segment Reporting Information [Line Items]
Net sales and revenues	(15.8)	(15.0)	(48.1)	(45.6)
Truck, Parts and Other | Other
Segment Reporting Information [Line Items]
Net sales and revenues	17.3	24.9	52.8	68.8
Income before income taxes	8.0	3.0	14.9	13.9
Depreciation and amortization	6.0	5.3	17.9	16.0
Financial Services
Segment Reporting Information [Line Items]
Revenues	371.9	409.1	1,110.6	1,297.4
Income before income taxes	146.2	120.1	437.6	303.0
Depreciation and amortization	$ 107.2	$ 138.3	$ 322.1	$ 463.5

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Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets	$ 238.0		$ 238.0		$ 59.7
Fair Value Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Remaining cumulative basis adjustments on discontinued hedge relationship	7.0		$ 7.0		$ (0.1)
Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Maximum length of future cash flow hedges			5 years 9 months 18 days
Accumulated net loss on derivative contracts included in accumulated other comprehensive loss expected to be recognized in the Consolidated Statements of Comprehensive Income in the following 12 months, net of tax			$ 25.1
Reclassification from AOCI			0.1
Net Investment Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount outstanding	347.0		347.0
Pre-tax (loss) gain recognized in OCI	22.8		58.8
Cost of sales and revenues
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss from commodity contracts	7.0		17.4
Interest-Rate Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount of outstanding contracts	2,710.0		2,710.0
Notional maturities for interest-rate contracts, remainder of 2022	184.5		184.5
Notional maturities for interest-rate contracts 2023	631.4		631.4
Notional maturities for interest-rate contracts 2024	572.1		572.1
Notional maturities for interest-rate contracts 2025	912.1		912.1
Notional maturities for interest-rate contracts 2026	244.0		244.0
Notional maturities for interest-rate contracts 2027	155.1		155.1
Notional maturities for interest-rate contracts thereafter	10.8		10.8
Foreign-exchange contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount outstanding	2,142.2		$ 2,142.2
Foreign-exchange contracts maturity period			within two years
Commodity Contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount outstanding	$ 40.7		$ 40.7
Foreign-exchange contracts maturity period			within one year

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Balance Sheet Classifications, Fair Value, Gross and Pro Forma Net Amounts of Derivative Financial Instruments (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Derivative assets	$ 238.0	$ 59.7
Pro forma net amount	216.8	44.0
LIABILITIES
Derivative liabilities	84.2	88.5
Pro forma net amount	63.0	72.8
Interest-Rate Contracts | Financial Services
ASSETS
Less amounts not offset in financial instruments	(17.7)	(12.8)
LIABILITIES
Less amounts not offset in financial instruments	(17.7)	(12.8)
Foreign-exchange contracts | Financial Services
ASSETS
Less amounts not offset in financial instruments		(0.2)
LIABILITIES
Less amounts not offset in financial instruments		(0.2)
Foreign-exchange contracts | Truck, Parts and Other
ASSETS
Less amounts not offset in financial instruments	(3.5)	(2.7)
LIABILITIES
Less amounts not offset in financial instruments	(3.5)	(2.7)
Designated under hedge accounting
ASSETS
Derivative assets	236.0	58.6
LIABILITIES
Derivative liabilities	82.9	87.2
Designated under hedge accounting | Interest-Rate Contracts | Financial Services | Other Assets
ASSETS
Derivative assets	131.1	30.8
Designated under hedge accounting | Interest-Rate Contracts | Financial Services | Deferred Taxes and Other Liabilities
LIABILITIES
Derivative liabilities	62.6	54.4
Designated under hedge accounting | Foreign-exchange contracts | Financial Services | Other current assets
ASSETS
Derivative assets	3.9	2.5
Designated under hedge accounting | Foreign-exchange contracts | Financial Services | Deferred Taxes and Other Liabilities
LIABILITIES
Derivative liabilities	3.9	0.1
Designated under hedge accounting | Foreign-exchange contracts | Truck, Parts and Other | Other current assets
ASSETS
Derivative assets	101.0	25.3
Designated under hedge accounting | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other
LIABILITIES
Derivative liabilities	5.2	15.8
Designated under hedge accounting | Commodity Contract | Truck, Parts and Other | Accounts payable, accrued expenses and other
LIABILITIES
Derivative liabilities	11.2	16.9
Not designated as hedging instruments
ASSETS
Derivative assets	2.0	1.1
LIABILITIES
Derivative liabilities	1.3	1.3
Not designated as hedging instruments | Foreign-exchange contracts | Financial Services | Other Assets
ASSETS
Derivative assets	0.2	0.1
Not designated as hedging instruments | Foreign-exchange contracts | Financial Services | Deferred Taxes and Other Liabilities
LIABILITIES
Derivative liabilities	0.2	0.2
Not designated as hedging instruments | Foreign-exchange contracts | Truck, Parts and Other | Other current assets
ASSETS
Derivative assets	1.8	1.0
Not designated as hedging instruments | Foreign-exchange contracts | Truck, Parts and Other | Accounts payable, accrued expenses and other
LIABILITIES
Derivative liabilities	$ 1.1	$ 1.1

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Amount of Loss (Gain) from Derivative Financial Instruments Recorded in Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest-Rate Contracts
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	$ (56.4)	$ (35.4)	$ (99.4)	$ (45.8)
Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(56.4)	(35.4)	(99.4)	(45.8)
Foreign-exchange contracts
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(7.2)	13.5	9.5	23.9
Foreign-exchange contracts | Truck, Parts and Other
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(7.1)	13.8	14.0	24.6
Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues | Not designated as hedging instruments
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	0.4	17.8	0.3	8.8
Foreign-exchange contracts | Truck, Parts and Other | Interest and other (income), net | Not designated as hedging instruments
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(5.8)	(0.6)	(4.5)	1.0
Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(0.1)	(0.3)	(4.5)	(0.7)
Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses | Not designated as hedging instruments
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	2.9	(0.3)	3.1	(0.7)
Cash Flow Hedging | Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(56.2)	(35.4)	(99.3)	(45.9)
Cash Flow Hedging | Foreign-exchange contracts | Truck, Parts and Other | Sales
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	2.0	1.3	17.1	14.9
Cash Flow Hedging | Foreign-exchange contracts | Truck, Parts and Other | Cost of sales and revenues
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(6.2)	(3.5)	(3.5)	2.5
Cash Flow Hedging | Foreign-exchange contracts | Truck, Parts and Other | Interest and other (income), net
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	3.9	(0.5)	8.8	(0.2)
Cash Flow Hedging | Foreign-exchange contracts | Financial Services | Interest and other borrowing expenses
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(3.0)		(7.6)
Net Investment Hedging | Foreign-exchange contracts | Truck, Parts and Other | Interest and other (income), net
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	(1.4)	$ (0.7)	(4.2)	(2.4)
Fair Value Hedging | Interest-Rate Contracts | Financial Services | Interest and other borrowing expenses
Derivative Instruments Gain Loss [Line Items]
Derivatives designated as hedging instruments (gain) loss	$ (0.2)		$ (0.1)	$ 0.1

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Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Carrying amount of the hedged liabilities	$ 329.3	$ 472.0
Cumulative basis adjustment included in the carrying amount	$ 28.6	$ 8.7

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Pre-Tax Effects of Gain (Loss) on Cash Flow Hedges Recognized in OCI (Detail) - Derivative Contracts - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest-Rate Contracts
Derivative [Line Items]
Gain (loss) recognized in OCI	$ 49.4	$ 43.4	$ 109.1	$ 67.1
Foreign-exchange contracts
Derivative [Line Items]
Gain (loss) recognized in OCI	35.3	2.9	35.1	(9.0)
Commodity Contract
Derivative [Line Items]
Gain (loss) recognized in OCI	(7.9)	(9.8)	(15.7)	(9.8)
Truck, Parts and Other | Foreign-exchange contracts
Derivative [Line Items]
Gain (loss) recognized in OCI	35.4	2.3	35.5	(6.7)
Truck, Parts and Other | Commodity Contract
Derivative [Line Items]
Gain (loss) recognized in OCI	(7.9)	(9.8)	(15.7)	(9.8)
Financial Services | Interest-Rate Contracts
Derivative [Line Items]
Gain (loss) recognized in OCI	49.4	43.4	109.1	67.1
Financial Services | Foreign-exchange contracts
Derivative [Line Items]
Gain (loss) recognized in OCI	$ (0.1)	$ 0.6	$ (0.4)	$ (2.3)

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Financial Assets and Liabilities Subject to Recurring Fair Value Measurements (Detail) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	$ 238.0	$ 59.7
Derivative liabilities	84.2	88.5
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	1,541.7	1,545.7
Marketable equity securities, Fair Value	2.5	13.7
Total marketable securities	1,544.2	1,559.4
Derivative assets	238.0	59.7
Derivative liabilities	84.2	88.5
Fair Value, Measurements, Recurring | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	109.0	96.4
Marketable equity securities, Fair Value	2.5	13.7
Total marketable securities	111.5	110.1
Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	1,432.7	1,449.3
Total marketable securities	1,432.7	1,449.3
Derivative assets	238.0	59.7
Derivative liabilities	84.2	88.5
Fair Value, Measurements, Recurring | Cross currency swaps
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	119.1	18.2
Derivative liabilities	34.1	33.1
Fair Value, Measurements, Recurring | Cross currency swaps | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	119.1	18.2
Derivative liabilities	34.1	33.1
Fair Value, Measurements, Recurring | Interest-rate swaps
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	12.0	12.6
Derivative liabilities	28.5	21.3
Fair Value, Measurements, Recurring | Interest-rate swaps | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	12.0	12.6
Derivative liabilities	28.5	21.3
Fair Value, Measurements, Recurring | Foreign-exchange contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	106.9	28.9
Derivative liabilities	10.4	17.2
Fair Value, Measurements, Recurring | Foreign-exchange contracts | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative assets	106.9	28.9
Derivative liabilities	10.4	17.2
Fair Value, Measurements, Recurring | Commodity Contract
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liabilities	11.2	16.9
Fair Value, Measurements, Recurring | Commodity Contract | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative liabilities	11.2	16.9
U.S. tax-exempt securities | Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	442.9	432.5
U.S. tax-exempt securities | Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	442.9	432.5
U.S. taxable municipal / non-U.S. provincial bonds | Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	176.1	191.6
U.S. taxable municipal / non-U.S. provincial bonds | Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	176.1	191.6
U.S. corporate securities | Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	235.5	207.4
U.S. corporate securities | Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	235.5	207.4
U.S. government and agency securities | Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	109.0	96.4
U.S. government and agency securities | Fair Value, Measurements, Recurring | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	109.0	96.4
Non-U.S. corporate securities | Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	408.3	442.8
Non-U.S. corporate securities | Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	408.3	442.8
Non-U.S. government securities | Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	70.1	75.0
Non-U.S. government securities | Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	70.1	75.0
Other debt securities | Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	99.8	100.0
Other debt securities | Fair Value, Measurements, Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable debt securities	$ 99.8	$ 100.0

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Carrying Amount and Fair Value of Financial Services Fixed-Rate Loans and Fixed-Rate Debt (Detail) - Financial Services - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets, carrying amount
Fixed-rate loans	$ 6,399.8	$ 6,011.7
Liabilities, carrying amount
Fixed-rate debt	7,046.1	6,905.7
Assets, Fair Value
Fixed-rate loans	6,115.0	6,018.2
Liabilities, Fair Value
Fixed-rate debt	$ 6,681.2	$ 6,935.1

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Components of Net Pension Expense (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plan Net Periodic Benefit Cost [Abstract]
Service cost	$ 37.7	$ 37.6	$ 113.5	$ 113.0
Interest on projected benefit obligation	21.0	16.7	63.9	50.0
Expected return on assets	(53.2)	(51.1)	(162.0)	(153.4)
Amortization of prior service costs	0.2	0.2	0.5	0.6
Recognized actuarial loss	7.1	14.7	21.7	44.2
Net pension expense	$ 12.8	$ 18.1	$ 37.6	$ 54.4

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Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Contribution to pension plans	$ 21.1	$ 6.3	$ 34.3	$ 19.2