Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

NOTE I – INCOME TAXES

The Company’s effective income tax rate was 23.2% for 2023 compared to 24.3% for 2022, reflecting changes in the state tax expense during 2023 as compared to 2022.

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

	Year ended December 31
		2023			2022			2021
Current provision
Federal	$	19.1		$	34.7		$	219.8
State		11.9			12.8			30.3
		31.0			47.5			250.1
Deferred provision (benefit)
Federal		18.0			17.6			(180.4	)
State		(6.8	)		(2.0	)		(21.5	)
		11.2			15.6			(201.9	)
Total provision for income taxes	$	42.2		$	63.1		$	48.2

A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows:

	Year ended December 31
		2023		2022		2021
Statutory rate		21.0	%	21.0	%	21.0	%
Effect of state		2.2	%	3.3	%	3.6	%
		23.2	%	24.3	%	24.6	%

Cash paid for income taxes was nil in 2023, 2022 and 2021. PACCAR Inc pays all federal and state income taxes on behalf of the Company.

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

	December 31			December 31
		2023			2022
Deferred tax assets:
Allowance for losses on receivables	$	14.9		$	15.2
Other		7.6			5.3
Deferred tax liabilities:
Depreciation		(495.7	)		(485.1	)
Other		(3.1	)		(2.9	)
Net deferred tax liability	$	(476.3	)	$	(467.5	)