Stockholder's Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholder's Equity

NOTE D – Stockholder’s Equity

Preferred Stock

The Company’s Articles of Incorporation provide that the 6% noncumulative, nonvoting preferred stock (100% owned by PACCAR) is redeemable only at the option of the Company’s Board of Directors.

Comprehensive Income

The components of comprehensive income are as follows:

	Three Months Ended					Six Months Ended
	June 30					June 30
		2024		2023			2024	2023
Net income	$	30.0		$	38.3	$	59.2	$	79.4
Other comprehensive (loss) income
Derivative contracts (decrease) increase		(.7	)		6.7		1.2		(1.5	)
Total comprehensive income	$	29.3		$	45.0	$	60.4	$	77.9

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) (AOCI) of $12.2 and $11.0 at June 30, 2024 and December 31, 2023, respectively, is comprised of the unrealized net gain (loss) on derivative contracts, net of taxes. Changes in and reclassifications out of AOCI during the periods are as follows:

	Three Months Ended						Six Months Ended
	June 30						June 30
		2024		2023			2024			2023
Balance at beginning of period	$	12.9		$	10.2		$	11.0		$	18.4
Amounts recorded in AOCI
Unrealized gain (loss) on derivative contracts		1.8			10.9			6.6			2.3
Income tax effect		(.4	)		(2.7	)		(1.6	)		(.6	)
Amounts reclassified out of AOCI
Interest and other borrowing costs		(2.7	)		(2.0	)		(5.0	)		(4.3	)
Income tax effect		.6			.5			1.2			1.1
Net other comprehensive (loss) income		(.7	)		6.7			1.2			(1.5	)
Balance at end of period	$	12.2		$	16.9		$	12.2		$	16.9