Stockholder's Equity

3 Months Ended

Mar. 31, 2022

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
	March 31
		2022	2021
Net income	$	56.8	$	25.5
Other comprehensive income
Derivative contracts increase		19.5		9.3
Total comprehensive income	$	76.3	$	34.8

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) (AOCI) of $17.6 and $(1.9) at March 31, 2022 and December 31, 2021, respectively, is comprised of the unrealized net gain on derivative contracts, net of taxes. Changes in and reclassifications out of AOCI during the periods are as follows:

	Three Months Ended
	March 31
		2022		2021
Balance at beginning of period	$	(1.9	)	$	(25.3	)
Amounts recorded in AOCI
Unrealized gain on derivative contracts		14.8			8.7
Income tax effect		(3.7	)		(2.1	)
Amounts reclassified out of AOCI
Interest and other borrowing costs		11.1			3.5
Income tax effect		(2.7	)		(.8	)
Net other comprehensive income		19.5			9.3
Balance at end of period	$	17.6		$	(16.0	)