NOTE G - Stockholders’ Equity

Comprehensive Income

The components of comprehensive income are as follows:

Three Months Ended March 31,	2018			2017
Net income	$	512.1		$	310.3
Other comprehensive (loss) income (OCI):
Unrealized losses on derivative contracts		(4.1	)		(13.6	)
Tax effect		1.6			4.0
		(2.5	)		(9.6	)
Unrealized (losses) gains on marketable debt securities		(2.6	)		3.4
Tax effect		.6			(1.3	)
		(2.0	)		2.1
Pension plans		2.6			3.9
Tax effect		(.6	)		(1.3	)
		2.0			2.6
Foreign currency translation gains		77.8			75.0
Net other comprehensive income		75.3			70.1
Comprehensive income	$	587.4		$	380.4

Accumulated Other Comprehensive Income (Loss)

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

	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2018	$	1.2		$	(1.8	)	$	(375.6	)	$	(417.4	)	$	(793.6	)
Recorded into AOCI		(11.8	)		(1.7	)		(5.6	)		77.8			58.7
Reclassified out of AOCI		9.3			(.3	)		7.6						16.6
Net other comprehensive (loss) income		(2.5	)		(2.0	)		2.0			77.8			75.3
Balance at March 31, 2018	$	(1.3	)	$	(3.8	)	$	(373.6	)	$	(339.6	)	$	(718.3	)

	DERIVATIVE CONTRACTS			MARKETABLE DEBT SECURITIES			PENSION PLANS			FOREIGN CURRENCY TRANSLATION			TOTAL
Balance at January 1, 2017	$	(4.3	)	$	(.3	)	$	(414.1	)	$	(709.4	)	$	(1,128.1	)
Recorded into AOCI		(45.9	)		2.3			(2.1	)		75.0			29.3
Reclassified out of AOCI		36.3			(.2	)		4.7						40.8
Net other comprehensive (loss) income		(9.6	)		2.1			2.6			75.0			70.1
Balance at March 31, 2017	$	(13.9	)	$	1.8		$	(411.5	)	$	(634.4	)	$	(1,058.0	)

Reclassifications out of AOCI during the three months ended March 31, 2018 and 2017 are as follows:

		Three Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	March 31
AOCI COMPONENTS	COMPREHENSIVE INCOME	2018			2017
Unrealized (gains) and losses on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	4.6		$	4.2
	Cost of sales and revenues		(1.1	)		.1
	Interest and other (income), net		(1.0	)
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		9.3			45.8
	Pre-tax expense increase		11.8			50.1
	Tax benefit		(2.5	)		(13.8	)
	After-tax expense increase		9.3			36.3
Unrealized gains on marketable debt securities:
Marketable debt securities	Investment income		(.4	)		(.3	)
	Tax expense		.1			.1
	After-tax income increase		(.3	)		(.2	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Interest and other (income), net		7.7			6.7

Prior service costs	Interest and other (income), net		.4			.3
	Pre-tax expense increase		8.1			7.0
	Tax benefit		(.5	)		(2.3	)
	After-tax expense increase		7.6			4.7
Total reclassifications out of AOCI		$	16.6		$	40.8

Stock Compensation Plans

Stock-based compensation expense was $7.0 and $7.1 for the three months ended March 31, 2018 and 2017, respectively.

During the first three months of 2018, the Company issued 314,244 common shares under deferred and stock compensation arrangements.

Other Capital Stock Changes

During the first quarter of 2018, the Company purchased 257,790 treasury shares, of which 248,934 shares were repurchased pursuant to the $300 million common stock repurchase plan approved on September 23, 2015. The Company also acquired 8,856 shares under the Company’s Long-Term Incentive Plan.