v3.26.1
Stockholder's Equity
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholder's Equity

NOTE D – Stockholder’s Equity

Preferred Stock

The Company’s Articles of Incorporation provide that the 6% noncumulative, nonvoting preferred stock (100% owned by PACCAR) is redeemable only at the option of the Company’s Board of Directors.

Comprehensive Income

The components of comprehensive income are as follows:

 

 

 

Three Months Ended

 

 

 

March 31

 

 

 

 

2026

 

 

2025

 

Net income

 

$

34.0

 

 

$

40.5

 

Other comprehensive income (loss)

 

 

 

 

 

 

Derivative contracts increase (decrease)

 

 

.8

 

 

 

(2.9

)

Total comprehensive income

 

$

34.8

 

 

$

37.6

 

Accumulated Other Comprehensive Income

Accumulated other comprehensive income (AOCI) of $4.5 and $3.7 at March 31, 2026 and December 31, 2025, respectively, is comprised of the unrealized net gain (loss) on derivative contracts, net of taxes. Changes in and reclassifications out of AOCI during the periods are as follows:

 

 

 

 

 

Three Months Ended

 

 

 

 

 

March 31

 

 

 

 

 

 

2026

 

 

2025

 

Balance at beginning of period

 

 

 

$

3.7

 

 

$

7.9

 

Amounts recorded in AOCI

 

 

 

 

 

 

 

 

Unrealized gain (loss) on derivative contracts

 

 

 

 

1.9

 

 

 

(2.5

)

Income tax effect

 

 

 

 

(.5

)

 

 

.4

 

Amounts reclassified out of AOCI

 

 

 

 

 

 

 

 

Interest and other borrowing costs

 

 

 

 

(.8

)

 

 

(1.3

)

Income tax effect

 

 

 

 

.2

 

 

 

.5

 

 

 

 

 

 

 

 

 

 

Net other comprehensive income (loss)

 

 

 

 

.8

 

 

 

(2.9

)

 

 

 

 

 

 

 

 

 

Balance at end of period

 

 

 

$

4.5

 

 

$

5.0