Stockholders' Equity

3 Months Ended

Mar. 31, 2019

NOTE I - Stockholders’ Equity

Comprehensive Income

The components of comprehensive income are as follow:

Three Months Ended March 31,	2019			2018
Net income	$	629.0		$	512.1
Other comprehensive (loss) income (OCI):
Unrealized losses on derivative contracts		(15.8	)		(4.1	)
Tax effect		4.2			1.6
		(11.6	)		(2.5	)
Unrealized gains (losses) on marketable debt securities		6.2			(2.6	)
Tax effect		(1.6	)		.6
		4.6			(2.0	)
Pension plans		.7			2.6
Tax effect		(.1	)		(.6	)
		.6			2.0
Foreign currency translation gains		9.4			77.8
Net other comprehensive income		3.0			75.3
Comprehensive income	$	632.0		$	587.4

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, 2019	$	2.0		$	(2.3	)	$	(477.8	)	$	(620.4	)	$	(1,098.5	)
Recorded into AOCI		(22.7	)		4.6			(3.1	)		9.4			(11.8	)
Reclassified out of AOCI		11.1						3.7						14.8
Net other comprehensive (loss) income		(11.6	)		4.6			.6			9.4			3.0
Balance at March 31, 2019	$	(9.6	)	$	2.3		$	(477.2	)	$	(611.0	)	$	(1,095.5	)

	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	)		(4.2	)		77.8			60.1
Reclassified out of AOCI		9.3			(.3	)		6.2						15.2
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	)

Reclassifications out of AOCI were as follows:

		Three Months Ended
	LINE ITEM IN THE CONSOLIDATED STATEMENTS OF	March 31
AOCI COMPONENTS	COMPREHENSIVE INCOME		2019			2018
Unrealized losses and (gains) on derivative contracts:
Truck, Parts and Other
Foreign-exchange contracts	Net sales and revenues	$	9.4		$	4.6
	Cost of sales and revenues		(2.1	)		(1.1	)
	Interest and other (income), net		.5			(1.0	)
Financial Services
Interest-rate contracts	Interest and other borrowing expenses		6.7			9.3
	Pre-tax expense increase		14.5			11.8
	Tax benefit		(3.4	)		(2.5	)
	After-tax expense increase		11.1			9.3
Unrealized losses and (gains) on marketable debt securities:
Marketable debt securities	Investment income					(.4	)
	Tax expense					.1
	After-tax income increase					(.3	)
Pension plans:
Truck, Parts and Other
Actuarial loss	Interest and other (income), net		4.4			7.7

Prior service costs	Interest and other (income), net		.4			.4
	Pre-tax expense increase		4.8			8.1
	Tax benefit		(1.1	)		(1.9	)
	After-tax expense increase		3.7			6.2
Total reclassifications out of AOCI		$	14.8		$	15.2

Stock Compensation Plans

Stock-based compensation expense was $8.7 and $7.0 for the three months ended March 31, 2019 and 2018, respectively.

During the first three months of 2019, the Company issued 410,105 common shares under deferred and stock compensation arrangements.

Other Capital Stock Changes

During the first three months of 2019, the Company purchased 501,735 treasury shares, of which 491,447 shares were repurchased pursuant to the Company’s common stock repurchase plans approved on July 9, 2018 and December 4, 2018. The Company also acquired 10,288 shares under the Company’s Long-Term Incentive Plan. Stock repurchases of $507.2 million remain authorized under the current $800.0 million programs approved by the PACCAR Board of Directors on July 9, 2018 and December 4, 2018.