Stockholder's Equity

6 Months Ended

Jun. 30, 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					Six Months Ended
	June 30					June 30
		2022	2021				2022	2021
Net income	$	45.6	$	36.1		$	102.4	$	61.6
Other comprehensive income (loss)
Derivative contracts increase (decrease)		2.2		(.4	)		21.7		8.9
Total comprehensive income	$	47.8	$	35.7		$	124.1	$	70.5

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) (AOCI) of $19.8 and $(1.9) at June 30, 2022 and December 31, 2021, 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
		2022		2021			2022			2021
Balance at beginning of period	$	17.6		$	(16.0	)	$	(1.9	)	$	(25.3	)
Amounts recorded in AOCI
Unrealized (loss) gain on derivative contracts		(13.6	)		(3.6	)		1.2			5.1
Income tax effect		3.4			.9			(.3	)		(1.2	)
Amounts reclassified out of AOCI
Interest and other borrowing costs		16.5			3.1			27.6			6.6
Income tax effect		(4.1	)		(.8	)		(6.8	)		(1.6	)
Net other comprehensive income (loss)		2.2			(.4	)		21.7			8.9
Balance at end of period	$	19.8		$	(16.4	)	$	19.8		$	(16.4	)