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Stockholders' Equity
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Stockholders' Equity

NOTE G - Stockholders’ Equity

Comprehensive Income

The components of comprehensive income are as follow:

 

Three Months Ended March 31,

 

2021

 

 

2020

 

Net income

 

$

470.1

 

 

$

359.4

 

Other comprehensive income (loss) (OCI):

 

 

 

 

 

 

 

 

Unrealized gains on derivative contracts

 

 

22.3

 

 

 

51.4

 

Tax effect

 

 

(4.1

)

 

 

(10.0

)

 

 

 

18.2

 

 

 

41.4

 

Unrealized losses on marketable debt securities

 

 

(6.6

)

 

 

(2.1

)

Tax effect

 

 

1.6

 

 

 

.5

 

 

 

 

(5.0

)

 

 

(1.6

)

Pension plans

 

 

12.9

 

 

 

31.1

 

Tax effect

 

 

(3.1

)

 

 

(7.6

)

 

 

 

9.8

 

 

 

23.5

 

Foreign currency translation losses

 

 

(89.1

)

 

 

(347.1

)

Net other comprehensive loss

 

 

(66.1

)

 

 

(283.8

)

Comprehensive income

 

$

404.0

 

 

$

75.6

 

 

Accumulated Other Comprehensive Income (Loss)

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

 

 

DERIVATIVE

CONTRACTS

 

 

MARKETABLE

DEBT

SECURITIES

 

 

PENSION

PLANS

 

 

FOREIGN

CURRENCY

TRANSLATION

 

 

TOTAL

 

Balance at January 1, 2021

 

$

(29.2

)

 

$

14.6

 

 

$

(578.1

)

 

$

(457.6

)

 

$

(1,050.3

)

Recorded into AOCI

 

 

26.1

 

 

 

(4.5

)

 

 

(1.2

)

 

 

(89.1

)

 

 

(68.7

)

Reclassified out of AOCI

 

 

(7.9

)

 

 

(.5

)

 

 

11.0

 

 

 

 

 

 

 

2.6

 

Net other comprehensive income (loss)

 

 

18.2

 

 

 

(5.0

)

 

 

9.8

 

 

 

(89.1

)

 

 

(66.1

)

Balance at March 31, 2021

 

$

(11.0

)

 

$

9.6

 

 

$

(568.3

)

 

$

(546.7

)

 

$

(1,116.4

)

 

 

 

DERIVATIVE

CONTRACTS

 

 

MARKETABLE

DEBT

SECURITIES

 

 

PENSION

PLANS

 

 

FOREIGN

CURRENCY

TRANSLATION

 

 

TOTAL

 

Balance at January 1, 2020

 

$

(15.3

)

 

$

6.1

 

 

$

(517.7

)

 

$

(573.2

)

 

$

(1,100.1

)

Recorded into AOCI

 

 

98.6

 

 

 

(1.3

)

 

 

10.0

 

 

 

(347.1

)

 

 

(239.8

)

Reclassified out of AOCI

 

 

(57.2

)

 

 

(.3

)

 

 

13.5

 

 

 

 

 

 

 

(44.0

)

Net other comprehensive income (loss)

 

 

41.4

 

 

 

(1.6

)

 

 

23.5

 

 

 

(347.1

)

 

 

(283.8

)

Balance at March 31, 2020

 

$

26.1

 

 

$

4.5

 

 

$

(494.2

)

 

$

(920.3

)

 

$

(1,383.9

)

 

 

Reclassifications out of AOCI were as follows:

 

 

 

 

 

Three Months Ended

 

 

 

LINE ITEM IN THE CONSOLIDATED STATEMENTS OF

 

March 31

 

AOCI COMPONENTS

 

COMPREHENSIVE INCOME

 

 

2021

 

 

 

2020

 

Unrealized losses (gains) on derivative contracts:

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other

 

 

 

 

 

 

 

 

 

 

Foreign-exchange contracts

 

Net sales and revenues

 

$

8.5

 

 

$

.1

 

 

 

Cost of sales and revenues

 

 

2.3

 

 

 

(1.2

)

 

 

Interest and other (income), net

 

 

.2

 

 

 

(6.1

)

Financial Services

 

 

 

 

 

 

 

 

 

 

Interest-rate contracts

 

Interest and other borrowing expenses

 

 

(22.7

)

 

 

(67.7

)

 

 

Pre-tax expense reduction

 

 

(11.7

)

 

 

(74.9

)

 

 

Tax expense

 

 

3.8

 

 

 

17.7

 

 

 

After-tax expense reduction

 

 

(7.9

)

 

 

(57.2

)

Unrealized gains on marketable debt securities:

 

 

 

 

 

 

 

 

 

 

Marketable debt securities

 

Investment income

 

 

(.6

)

 

 

(.4

)

 

 

Tax expense

 

 

.1

 

 

 

.1

 

 

 

After-tax income increase

 

 

(.5

)

 

 

(.3

)

Pension plans:

 

 

 

 

 

 

 

 

 

 

Truck, Parts and Other

 

 

 

 

 

 

 

 

 

 

Actuarial loss

 

Interest and other (income), net

 

 

14.2

 

 

 

10.3

 

Prior service costs

 

Interest and other (income), net

 

 

.2

 

 

 

.4

 

Settlement loss

 

Interest and other (income), net

 

 

 

 

 

 

7.0

 

 

 

Pre-tax expense increase

 

 

14.4

 

 

 

17.7

 

 

 

Tax benefit

 

 

(3.4

)

 

 

(4.2

)

 

 

After-tax expense increase

 

 

11.0

 

 

 

13.5

 

Total reclassifications out of AOCI

 

 

 

$

2.6

 

 

$

(44.0

)

 

Stock Compensation Plans

Stock-based compensation expense was $6.8 and $5.7 for the three months ended March 31, 2021 and 2020, respectively.

During the first three months of 2021, the Company issued 603,052 common shares under deferred and stock compensation arrangements.  

Other Capital Stock Changes  

During the first three months of 2021, the Company had no treasury share repurchases under the Company’s common stock repurchase plans. The Company acquired 15,631 shares under the Company’s Long-Term Incentive Plan. Stock repurchases of $390.0 million remain authorized under the current $500.0 million program approved by the PACCAR Board of Directors on December 4, 2018.