Stockholders' Equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Stockholders' Equity

NOTE F - Stockholders’ Equity

Comprehensive Income

The components of comprehensive income are as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2015			2014			2015			2014
Net income	$	431.2		$	371.4		$	1,256.8		$	964.5
Other comprehensive income (OCI):
Unrealized gains on derivative contracts		3.7			7.5			6.7			7.9
Tax effect		(.9	)		(2.6	)		(1.5	)		(2.4	)
		2.8			4.9			5.2			5.5
Unrealized gains (losses) on marketable debt securities					1.0			(2.5	)		4.7
Tax effect					(.1	)		.7			(1.1	)
					.9			(1.8	)		3.6
Pension plans		17.8			14.5			41.5			22.0
Tax effect		(5.8	)		(4.4	)		(13.9	)		(7.0	)
		12.0			10.1			27.6			15.0
Foreign currency translation losses		(163.4	)		(278.0	)		(409.4	)		(231.4	)
Net other comprehensive loss		(148.6	)		(262.1	)		(378.4	)		(207.3	)
Comprehensive income	$	282.6		$	109.3		$	878.4		$	757.2

Accumulated Other Comprehensive Loss

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

Three Months Ended September 30, 2015	Derivative Contracts			Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at June 30, 2015	$	(11.1	)	$	3.5		$	(417.5	)	$	(384.5	)	$	(809.6	)
Recorded into AOCI		26.3			.2			5.1			(163.4	)		(131.8	)
Reclassified out of AOCI		(23.5	)		(.2	)		6.9						(16.8	)
Net other comprehensive income (loss)		2.8						12.0			(163.4	)		(148.6	)
Balance at September 30, 2015	$	(8.3	)	$	3.5		$	(405.5	)	$	(547.9	)	$	(958.2	)
Three Months Ended September 30, 2014	Derivative Contracts			Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at June 30, 2014	$	(14.5	)	$	4.4		$	(257.3	)	$	330.9		$	63.5
Recorded into AOCI		22.5			1.3			6.4			(278.0	)		(247.8	)
Reclassified out of AOCI		(17.6	)		(.4	)		3.7						(14.3	)
Net other comprehensive income (loss)		4.9			.9			10.1			(278.0	)		(262.1	)
Balance at September 30, 2014	$	(9.6	)	$	5.3		$	(247.2	)	$	52.9		$	(198.6	)
Nine Months Ended September 30, 2015	Derivative Contracts			Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at December 31, 2014	$	(13.5	)	$	5.3		$	(433.1	)	$	(138.5	)	$	(579.8	)
Recorded into AOCI		31.2			(.8	)		6.9			(409.4	)		(372.1	)
Reclassified out of AOCI		(26.0	)		(1.0	)		20.7						(6.3	)
Net other comprehensive income (loss)		5.2			(1.8	)		27.6			(409.4	)		(378.4	)
Balance at September 30, 2015	$	(8.3	)	$	3.5		$	(405.5	)	$	(547.9	)	$	(958.2	)
Nine Months Ended September 30, 2014	Derivative Contracts			Marketable Debt Securities			Pension Plans			Foreign Currency Translation			Total
Balance at December 31, 2013	$	(15.1	)	$	1.7		$	(262.2	)	$	284.3		$	8.7
Recorded into AOCI		(.2	)		4.1			3.8			(231.4	)		(223.7	)
Reclassified out of AOCI		5.7			(.5	)		11.2						16.4
Net other comprehensive income (loss)		5.5			3.6			15.0			(231.4	)		(207.3	)
Balance at September 30, 2014	$	(9.6	)	$	5.3		$	(247.2	)	$	52.9		$	(198.6	)

Reclassifications out of AOCI during the three months ended September 30, 2015 and 2014 are as follows:

AOCI Components	Line Item in the Consolidated Statements of Comprehensive Income	Three Months Ended September 30
		2015			2014
Unrealized (gains) and losses on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	(.3	)
	Cost of sales and revenues		(.6	)	$	(.1	)
	Interest and other expense, net		(1.5	)
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		(29.3	)		(23.6	)
	Pre-tax expense reduction		(31.7	)		(23.7	)
	Tax expense		8.2			6.1
	After-tax expense reduction		(23.5	)		(17.6	)
Unrealized (gains) and losses on marketable debt securities:
Marketable debt securities	Investment income		(.3	)		(.6	)
	Tax expense		.1			.2
	After-tax income increase		(.2	)		(.4	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Cost of sales and revenues		5.6			2.8
	Selling, general and administrative		4.3			2.2
			9.9			5.0
Prior service costs	Cost of sales and revenues		.2			.2
	Selling, general and administrative		.1			.1
			.3			.3
Financial Services
Actuarial loss	Selling, general and administrative		.4			.2
	Pre-tax expense increase		10.6			5.5
	Tax benefit		(3.7	)		(1.8	)
	After-tax expense increase		6.9			3.7
Total reclassifications out of AOCI		$	(16.8	)	$	(14.3	)

Reclassifications out of AOCI during the nine months ended September 30, 2015 and 2014 are as follows:

AOCI Components	Line Item in the Consolidated Statements of Comprehensive Income	Nine Months Ended September 30
		2015			2014
Unrealized (gains) and losses on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Cost of sales and revenues	$	2.8		$	1.7
	Interest and other expense, net		(3.2	)		.1
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		(37.1	)		8.0
	Pre-tax expense (reduction) increase		(37.5	)		9.8
	Tax expense (benefit)		11.5			(4.1	)
	After-tax expense (reduction) increase		(26.0	)		5.7
Unrealized (gains) and losses on marketable debt securities:
Marketable debt securities	Investment income		(1.4	)		(.8	)
	Tax expense		.4			.3
	After-tax income increase		(1.0	)		(.5	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Cost of sales and revenues		16.8			8.4
	Selling, general and administrative		12.8			6.5
			29.6			14.9
Prior service costs	Cost of sales and revenues		.7			.7
	Selling, general and administrative		.2			.2
			.9			.9
Financial Services
Actuarial loss	Selling, general and administrative		1.3			.8
	Pre-tax expense increase		31.8			16.6
	Tax benefit		(11.1	)		(5.4	)
	After-tax expense increase		20.7			11.2
Total reclassifications out of AOCI		$	(6.3	)	$	16.4

Stock Compensation Plans

Stock-based compensation expense was $2.2 and $12.3 for the three and nine months ended September 30, 2015, respectively, and $2.5 and $12.9 for the three and nine months ended September 30, 2014, respectively. Realized tax benefits related to the excess of deductible amounts over expense recognized amounted to $.5 and $2.7 for the three and nine months ended September 30, 2015, respectively, and $.5 and $2.0 for the three and nine months ended September 30, 2014, respectively, and have been classified as a financing cash flow.

During the first nine months of 2015, the Company issued 533,812 common shares under deferred and stock compensation arrangements.

Other Capital Stock Changes

During the third quarter and first nine months of 2015, the Company purchased 1,371,339 treasury shares. The Company retired 731,355 treasury shares during the first quarter of 2015.