NOTE G - Stockholders’ Equity Comprehensive Income The components of comprehensive income are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Net income |
|
$ |
752.0 |
|
|
$ |
723.8 |
|
|
$ |
1,357.3 |
|
|
$ |
1,228.9 |
|
Other comprehensive (loss) income (OCI): |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (losses) gains on derivative contracts |
|
|
(13.2 |
) |
|
|
(16.7 |
) |
|
|
.4 |
|
|
|
(38.6 |
) |
Tax effect |
|
|
4.3 |
|
|
|
4.5 |
|
|
|
1.8 |
|
|
|
11.0 |
|
|
|
|
(8.9 |
) |
|
|
(12.2 |
) |
|
|
2.2 |
|
|
|
(27.6 |
) |
Unrealized (losses) gains on marketable debt securities |
|
|
(7.6 |
) |
|
|
7.6 |
|
|
|
(28.9 |
) |
|
|
23.3 |
|
Tax effect |
|
|
1.8 |
|
|
|
(1.5 |
) |
|
|
7.2 |
|
|
|
(5.9 |
) |
|
|
|
(5.8 |
) |
|
|
6.1 |
|
|
|
(21.7 |
) |
|
|
17.4 |
|
Pension plans |
|
|
1.3 |
|
|
|
(1.5 |
) |
|
|
1.6 |
|
|
|
(1.1 |
) |
Tax effect |
|
|
(.4 |
) |
|
|
1.3 |
|
|
|
(.5 |
) |
|
|
1.3 |
|
|
|
|
.9 |
|
|
|
(.2 |
) |
|
|
1.1 |
|
|
|
.2 |
|
Foreign currency translation gains |
|
|
.5 |
|
|
|
399.7 |
|
|
|
13.1 |
|
|
|
553.6 |
|
Net other comprehensive (loss) income |
|
|
(13.3 |
) |
|
|
393.4 |
|
|
|
(5.3 |
) |
|
|
543.6 |
|
Comprehensive income |
|
$ |
738.7 |
|
|
$ |
1,117.2 |
|
|
$ |
1,352.0 |
|
|
$ |
1,772.5 |
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2026 |
|
DERIVATIVE
CONTRACTS |
|
|
MARKETABLE
DEBT
SECURITIES |
|
|
PENSION
PLANS |
|
|
FOREIGN
CURRENCY
TRANSLATION |
|
|
TOTAL |
|
Balance at April 1, 2026 |
|
$ |
14.5 |
|
|
$ |
3.3 |
|
|
$ |
281.1 |
|
|
$ |
(627.6 |
) |
|
$ |
(328.7 |
) |
Recorded into AOCI |
|
|
(28.5 |
) |
|
|
(6.0 |
) |
|
|
|
|
|
.5 |
|
|
|
(34.0 |
) |
Reclassified out of AOCI |
|
|
19.6 |
|
|
|
.2 |
|
|
|
.9 |
|
|
|
|
|
|
20.7 |
|
Net other comprehensive (loss) income |
|
|
(8.9 |
) |
|
|
(5.8 |
) |
|
|
.9 |
|
|
|
.5 |
|
|
|
(13.3 |
) |
Balance at June 30, 2026 |
|
$ |
5.6 |
|
|
$ |
(2.5 |
) |
|
$ |
282.0 |
|
|
$ |
(627.1 |
) |
|
$ |
(342.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
DERIVATIVE
CONTRACTS |
|
|
MARKETABLE
DEBT
SECURITIES |
|
|
PENSION
PLANS |
|
|
FOREIGN
CURRENCY
TRANSLATION |
|
|
TOTAL |
|
Balance at April 1, 2025 |
|
$ |
17.1 |
|
|
$ |
10.6 |
|
|
$ |
70.1 |
|
|
$ |
(1,060.9 |
) |
|
$ |
(963.1 |
) |
Recorded into AOCI |
|
|
(123.2 |
) |
|
|
6.0 |
|
|
|
(.5 |
) |
|
|
399.7 |
|
|
|
282.0 |
|
Reclassified out of AOCI |
|
|
111.0 |
|
|
|
.1 |
|
|
|
.3 |
|
|
|
|
|
|
111.4 |
|
Net other comprehensive (loss) income |
|
|
(12.2 |
) |
|
|
6.1 |
|
|
|
(.2 |
) |
|
|
399.7 |
|
|
|
393.4 |
|
Balance at June 30, 2025 |
|
$ |
4.9 |
|
|
$ |
16.7 |
|
|
$ |
69.9 |
|
|
$ |
(661.2 |
) |
|
$ |
(569.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2026 |
|
DERIVATIVE
CONTRACTS |
|
|
MARKETABLE
DEBT
SECURITIES |
|
|
PENSION
PLANS |
|
|
FOREIGN
CURRENCY
TRANSLATION |
|
|
TOTAL |
|
Balance at January 1, 2026 |
|
$ |
3.4 |
|
|
$ |
19.2 |
|
|
$ |
280.9 |
|
|
$ |
(640.2 |
) |
|
$ |
(336.7 |
) |
Recorded into AOCI |
|
|
(74.0 |
) |
|
|
(22.5 |
) |
|
|
(1.1 |
) |
|
|
13.1 |
|
|
|
(84.5 |
) |
Reclassified out of AOCI |
|
|
76.2 |
|
|
|
.8 |
|
|
|
2.2 |
|
|
|
|
|
|
79.2 |
|
Net other comprehensive income (loss) |
|
|
2.2 |
|
|
|
(21.7 |
) |
|
|
1.1 |
|
|
|
13.1 |
|
|
|
(5.3 |
) |
Balance at June 30, 2026 |
|
$ |
5.6 |
|
|
$ |
(2.5 |
) |
|
$ |
282.0 |
|
|
$ |
(627.1 |
) |
|
$ |
(342.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
DERIVATIVE
CONTRACTS |
|
|
MARKETABLE
DEBT
SECURITIES |
|
|
PENSION
PLANS |
|
|
FOREIGN
CURRENCY
TRANSLATION |
|
|
TOTAL |
|
Balance at January 1, 2025 |
|
$ |
32.5 |
|
|
$ |
(.7 |
) |
|
$ |
69.7 |
|
|
$ |
(1,214.8 |
) |
|
$ |
(1,113.3 |
) |
Recorded into AOCI |
|
|
(192.4 |
) |
|
|
17.4 |
|
|
|
(.9 |
) |
|
|
553.6 |
|
|
|
377.7 |
|
Reclassified out of AOCI |
|
|
164.8 |
|
|
|
|
|
|
1.1 |
|
|
|
|
|
|
165.9 |
|
Net other comprehensive (loss) income |
|
|
(27.6 |
) |
|
|
17.4 |
|
|
|
.2 |
|
|
|
553.6 |
|
|
|
543.6 |
|
Balance at June 30, 2025 |
|
$ |
4.9 |
|
|
$ |
16.7 |
|
|
$ |
69.9 |
|
|
$ |
(661.2 |
) |
|
$ |
(569.7 |
) |
Reclassifications out of AOCI were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
LINE ITEM IN THE CONSOLIDATED STATEMENTS OF |
|
June 30 |
|
AOCI COMPONENTS |
|
COMPREHENSIVE INCOME |
|
|
2026 |
|
|
|
2025 |
|
Unrealized losses (gains) on derivative contracts: |
|
|
|
|
|
|
Truck, Parts and Other |
|
|
|
|
|
|
|
|
Foreign-exchange contracts |
|
Net sales and revenues |
|
$ |
1.4 |
|
|
$ |
6.8 |
|
|
|
Cost of sales and revenues |
|
|
.2 |
|
|
|
(1.3 |
) |
|
|
Interest and other (income) expenses, net |
|
|
(4.9 |
) |
|
|
17.8 |
|
|
|
|
|
|
|
|
|
|
Commodity contracts |
|
Cost of sales and revenues |
|
|
(.6 |
) |
|
|
(.7 |
) |
Financial Services |
|
|
|
|
|
|
|
|
Foreign-exchange contracts |
|
Interest and other borrowing expenses |
|
|
3.1 |
|
|
|
7.0 |
|
Interest-rate contracts |
|
Interest and other borrowing expenses |
|
|
26.9 |
|
|
|
113.1 |
|
|
|
Pre-tax expense increase |
|
|
26.1 |
|
|
|
142.7 |
|
|
|
Tax benefit |
|
|
(6.5 |
) |
|
|
(31.7 |
) |
|
|
After-tax expense increase |
|
|
19.6 |
|
|
|
111.0 |
|
Unrealized losses (gains) on marketable debt securities: |
|
|
|
|
|
|
Marketable debt securities |
|
Investment income |
|
|
.3 |
|
|
|
.2 |
|
|
|
Tax benefit |
|
|
(.1 |
) |
|
|
(.1 |
) |
|
|
After-tax income reduction |
|
|
.2 |
|
|
|
.1 |
|
Pension plans: |
|
|
|
|
|
|
|
|
Truck, Parts and Other |
|
|
|
|
|
|
|
|
Actuarial loss |
|
Interest and other (income) expenses, net |
|
|
.9 |
|
|
|
.1 |
|
Prior service costs |
|
Interest and other (income) expenses, net |
|
|
.4 |
|
|
|
.4 |
|
|
|
Pre-tax expense increase |
|
|
1.3 |
|
|
|
0.5 |
|
|
|
Tax benefit |
|
|
(.4 |
) |
|
|
(.2 |
) |
|
|
After-tax expense increase |
|
|
.9 |
|
|
|
.3 |
|
Total reclassifications out of AOCI |
|
|
|
$ |
20.7 |
|
|
$ |
111.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
LINE ITEM IN THE CONSOLIDATED STATEMENTS OF |
|
June 30 |
|
AOCI COMPONENTS |
|
COMPREHENSIVE INCOME |
|
|
2026 |
|
|
|
2025 |
|
Unrealized losses (gains) on derivative contracts: |
|
|
|
|
|
|
Truck, Parts and Other |
|
|
|
|
|
|
|
|
Foreign-exchange contracts |
|
Net sales and revenues |
|
$ |
5.8 |
|
|
$ |
4.0 |
|
|
|
Cost of sales and revenues |
|
|
1.9 |
|
|
|
(10.8 |
) |
|
|
Interest and other (income) expenses, net |
|
|
11.8 |
|
|
|
30.2 |
|
|
|
|
|
|
|
|
|
|
Commodity contracts |
|
Cost of sales and revenues |
|
|
(.5 |
) |
|
|
(.8 |
) |
Financial Services |
|
|
|
|
|
|
|
|
Foreign-exchange contracts |
|
Interest and other borrowing expenses |
|
|
10.8 |
|
|
|
12.8 |
|
Interest-rate contracts |
|
Interest and other borrowing expenses |
|
|
73.5 |
|
|
|
175.5 |
|
|
|
Pre-tax expense increase |
|
|
103.3 |
|
|
|
210.9 |
|
|
|
Tax benefit |
|
|
(27.1 |
) |
|
|
(46.1 |
) |
|
|
After-tax expense increase |
|
|
76.2 |
|
|
|
164.8 |
|
Unrealized losses (gains) on marketable debt securities: |
|
|
|
|
|
|
Marketable debt securities |
|
Investment income |
|
|
1.1 |
|
|
|
|
|
|
Tax benefit |
|
|
(.3 |
) |
|
|
|
|
|
After-tax income reduction |
|
|
.8 |
|
|
|
|
Pension plans: |
|
|
|
|
|
|
|
|
Truck, Parts and Other |
|
|
|
|
|
|
|
|
Actuarial loss |
|
Interest and other (income) expenses, net |
|
|
2.0 |
|
|
|
.8 |
|
Prior service costs |
|
Interest and other (income) expenses, net |
|
|
.8 |
|
|
|
.7 |
|
|
|
Pre-tax expense increase |
|
|
2.8 |
|
|
|
1.5 |
|
|
|
Tax benefit |
|
|
(.6 |
) |
|
|
(.4 |
) |
|
|
After-tax expense increase |
|
|
2.2 |
|
|
|
1.1 |
|
Total reclassifications out of AOCI |
|
|
|
$ |
79.2 |
|
|
$ |
165.9 |
|
Stock Compensation Plans Stock-based compensation expense was $4.0 and $18.6 for the three and six months ended June 30, 2026, and $3.9 and $17.6 for the three and six months ended June 30, 2025, respectively. During the first six months of 2026, the Company issued 937,201 common shares under deferred and stock compensation arrangements. Other Capital Stock Changes During the first six months of 2026, the Company purchased 41,707 treasury shares under the Company’s Long-Term Incentive Plan. There were no treasury shares repurchased pursuant to the Company's common stock repurchase plan. Stock repurchases of $371.6 remain authorized under the current $500.0 program approved by the PACCAR Board of Directors on December 4, 2018.
|