Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes

The components of the Company’s income before income taxes include the following:

Year Ended December 31,	2018		2017		2016
Domestic	$	1,775.2	$	1,347.8	$	1,190.7
Foreign		1,035.0		825.5		(60.3	)
	$	2,810.2	$	2,173.3	$	1,130.4

Components of Provision for Income Taxes

The components of the Company’s provision for income taxes include the following:

Year Ended December 31,	2018			2017			2016
Current provision:
Federal	$	267.1		$	397.7		$	322.9
State		67.5			63.8			41.7
Foreign		263.0			210.5			213.2
		597.6			672.0			577.8
Deferred provision (benefit):
Federal		22.6			(173.8	)		31.5
State		1.3			2.3			4.8
Foreign		(6.4	)		(2.4	)		(5.4	)
		17.5			(173.9	)		30.9
	$	615.1		$	498.1		$	608.7

Reconciliation of Statutory U.S Federal Tax Rate to Effective Income Tax Rate

A reconciliation of the statutory U.S. federal tax rate to the effective income tax rate is as follows:

	2018			2017			2016
Statutory rate		21.0	%		35.0	%		35.0	%
Effect of:
Rate change on deferred taxes					(14.0	)
Transition tax		(.2	)		6.0
Non-deductible EC charge							25.8
State		2.2			1.8			2.9
Federal domestic production deduction					(1.1	)		(2.6	)
Tax on foreign earnings		1.0			(4.0	)		(7.4	)
Other, net		(2.1	)		(.8	)		.1
		21.9	%		22.9	%		53.8	%

Tax Effects of Temporary Differences Representing Deferred Tax Assets and Liabilities and Balance Sheet Classification

The tax effects of temporary differences representing deferred tax assets and liabilities are as follows:

At December 31,	2018			2017
Assets:
Accrued expenses	$	179.4		$	183.9
Net operating loss and tax credit carryforwards		112.1			102.1
Allowance for losses on receivables		30.7			35.6
Goodwill and intangibles		24.2			34.4
Other		102.0			89.2
		448.4			445.2
Valuation allowance		(118.3	)		(118.6	)
		330.1			326.6
Liabilities:
Financial Services leasing depreciation		(676.4	)		(608.2	)
Depreciation and amortization		(145.2	)		(165.1	)
Postretirement benefit plans		(8.0	)		(39.5	)
Other		(32.9	)		(28.8	)
		(862.5	)		(841.6	)
Net deferred tax liability	$	(532.4	)	$	(515.0	)

The balance sheets classification of the Company’s deferred tax assets and liabilities are as follows:

At December 31,	2018			2017
Truck, Parts and Other:
Other noncurrent assets, net	$	97.1		$	71.0
Other liabilities		(2.5	)		(1.9	)
Financial Services:
Other assets		37.7			45.2
Deferred taxes and other liabilities		(664.7	)		(629.3	)
Net deferred tax liability	$	(532.4	)	$	(515.0	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2018			2017		2016
Balance at January 1	$	22.9		$	17.3	$	19.1
Additions for tax positions related to the current year		11.2			5.6		3.9
Reductions for tax positions related to prior years							(.3	)
Reductions related to settlements		(5.7	)				(5.4	)
Lapse of statute of limitations		(7.2	)
Balance at December 31	$	21.2		$	22.9	$	17.3