NOTE G - Stockholders’ Equity Comprehensive Income The components of comprehensive income are as follows:
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Three Months Ended |
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Nine Months Ended |
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September 30 |
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September 30 |
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2026 |
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2025 |
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2026 |
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2025 |
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Net income |
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$ |
847.5 |
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$ |
590.0 |
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$ |
2,204.8 |
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$ |
1,818.9 |
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Other comprehensive income (loss) (OCI): |
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Unrealized gains (losses) on derivative contracts |
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7.8 |
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.1 |
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8.2 |
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(38.5 |
) |
Tax effect |
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(2.0 |
) |
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(.2 |
) |
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11.0 |
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5.8 |
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.1 |
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8.0 |
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(27.5 |
) |
Unrealized (losses) gains on marketable debt securities |
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(44.0 |
) |
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4.4 |
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(72.9 |
) |
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27.7 |
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Tax effect |
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10.9 |
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(1.1 |
) |
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18.1 |
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(7.0 |
) |
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(33.1 |
) |
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3.3 |
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(54.8 |
) |
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20.7 |
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Pension plans |
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1.8 |
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(.4 |
) |
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3.4 |
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(1.5 |
) |
Tax effect |
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(.5 |
) |
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(.1 |
) |
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(1.0 |
) |
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1.2 |
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1.3 |
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(.5 |
) |
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2.4 |
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(.3 |
) |
Foreign currency translation (losses) gains |
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(43.2 |
) |
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(2.5 |
) |
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(30.1 |
) |
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551.1 |
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Net other comprehensive (loss) income |
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(69.2 |
) |
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.4 |
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(74.5 |
) |
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544.0 |
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Comprehensive income |
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$ |
778.3 |
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$ |
590.4 |
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$ |
2,130.3 |
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$ |
2,362.9 |
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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:
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Three Months Ended September 30, 2026 |
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DERIVATIVE
CONTRACTS |
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MARKETABLE
DEBT
SECURITIES |
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PENSION
PLANS |
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FOREIGN
CURRENCY
TRANSLATION |
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TOTAL |
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Balance at July 1, 2026 |
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$ |
5.6 |
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$ |
(2.5 |
) |
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$ |
282.0 |
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$ |
(627.1 |
) |
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$ |
(342.0 |
) |
Recorded into AOCI |
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10.1 |
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(33.1 |
) |
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.3 |
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(43.2 |
) |
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(65.9 |
) |
Reclassified out of AOCI |
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(4.3 |
) |
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1.0 |
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(3.3 |
) |
Net other comprehensive income (loss) |
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5.8 |
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(33.1 |
) |
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1.3 |
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(43.2 |
) |
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(69.2 |
) |
Balance at September 30, 2026 |
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$ |
11.4 |
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$ |
(35.6 |
) |
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$ |
283.3 |
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$ |
(670.3 |
) |
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$ |
(411.2 |
) |
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Three Months Ended September 30, 2025 |
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DERIVATIVE
CONTRACTS |
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MARKETABLE
DEBT
SECURITIES |
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PENSION
PLANS |
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FOREIGN
CURRENCY
TRANSLATION |
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TOTAL |
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Balance at July 1, 2025 |
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$ |
4.9 |
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$ |
16.7 |
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$ |
69.9 |
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$ |
(661.2 |
) |
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$ |
(569.7 |
) |
Recorded into AOCI |
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(2.5 |
) |
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2.9 |
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(1.2 |
) |
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(2.5 |
) |
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(3.3 |
) |
Reclassified out of AOCI |
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2.6 |
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.4 |
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.7 |
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3.7 |
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Net other comprehensive income (loss) |
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.1 |
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3.3 |
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(.5 |
) |
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(2.5 |
) |
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.4 |
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Balance at September 30, 2025 |
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$ |
5.0 |
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$ |
20.0 |
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$ |
69.4 |
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$ |
(663.7 |
) |
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$ |
(569.3 |
) |
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Nine Months Ended September 30, 2026 |
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DERIVATIVE
CONTRACTS |
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MARKETABLE
DEBT
SECURITIES |
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PENSION
PLANS |
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FOREIGN
CURRENCY
TRANSLATION |
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TOTAL |
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Balance at January 1, 2026 |
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$ |
3.4 |
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$ |
19.2 |
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$ |
280.9 |
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$ |
(640.2 |
) |
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$ |
(336.7 |
) |
Recorded into AOCI |
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(63.9 |
) |
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(55.6 |
) |
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(.8 |
) |
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(30.1 |
) |
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(150.4 |
) |
Reclassified out of AOCI |
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71.9 |
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|
.8 |
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3.2 |
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75.9 |
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Net other comprehensive income (loss) |
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8.0 |
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(54.8 |
) |
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2.4 |
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(30.1 |
) |
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(74.5 |
) |
Balance at September 30, 2026 |
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$ |
11.4 |
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$ |
(35.6 |
) |
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$ |
283.3 |
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$ |
(670.3 |
) |
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$ |
(411.2 |
) |
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Nine Months Ended September 30, 2025 |
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DERIVATIVE
CONTRACTS |
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MARKETABLE
DEBT
SECURITIES |
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PENSION
PLANS |
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FOREIGN
CURRENCY
TRANSLATION |
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TOTAL |
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Balance at January 1, 2025 |
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$ |
32.5 |
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$ |
(.7 |
) |
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$ |
69.7 |
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$ |
(1,214.8 |
) |
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$ |
(1,113.3 |
) |
Recorded into AOCI |
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(194.9 |
) |
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20.3 |
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(2.1 |
) |
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551.1 |
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374.4 |
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Reclassified out of AOCI |
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167.4 |
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|
.4 |
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1.8 |
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169.6 |
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Net other comprehensive (loss) income |
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(27.5 |
) |
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20.7 |
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(.3 |
) |
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551.1 |
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544.0 |
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Balance at September 30, 2025 |
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$ |
5.0 |
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$ |
20.0 |
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$ |
69.4 |
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$ |
(663.7 |
) |
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$ |
(569.3 |
) |
Reclassifications out of AOCI were as follows:
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Three Months Ended |
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LINE ITEM IN THE CONSOLIDATED STATEMENTS OF |
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September 30 |
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AOCI COMPONENTS |
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COMPREHENSIVE INCOME |
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2026 |
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2025 |
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Unrealized losses (gains) on derivative contracts: |
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Truck, Parts and Other |
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Foreign-exchange contracts |
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Net sales and revenues |
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$ |
2.3 |
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$ |
1.1 |
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Cost of sales and revenues |
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|
.3 |
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(12.2 |
) |
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Interest and other (income) expenses, net |
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(11.8 |
) |
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10.8 |
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Commodity contracts |
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Cost of sales and revenues |
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(1.2 |
) |
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(.6 |
) |
Financial Services |
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Foreign-exchange contracts |
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Interest and other borrowing expenses |
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(3.4 |
) |
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3.1 |
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Interest-rate contracts |
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Interest and other borrowing expenses |
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6.8 |
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.5 |
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Pre-tax expense (reduction) increase |
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(7.0 |
) |
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2.7 |
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Tax expense (benefit) |
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2.7 |
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(.1 |
) |
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After-tax expense (reduction) increase |
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(4.3 |
) |
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2.6 |
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Unrealized losses (gains) on marketable debt securities: |
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Marketable debt securities |
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Investment income |
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(.1 |
) |
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.6 |
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Tax expense (benefit) |
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.1 |
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(.2 |
) |
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After-tax income increase |
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.4 |
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Pension plans: |
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Truck, Parts and Other |
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Actuarial loss |
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Interest and other (income) expenses, net |
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1.0 |
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|
.6 |
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Prior service costs |
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Interest and other (income) expenses, net |
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|
.4 |
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|
.3 |
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Pre-tax expense increase |
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1.4 |
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|
.9 |
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Tax benefit |
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(.4 |
) |
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(.2 |
) |
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After-tax expense increase |
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1.0 |
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|
.7 |
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Total reclassifications out of AOCI |
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$ |
(3.3 |
) |
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$ |
3.7 |
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Nine Months Ended |
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LINE ITEM IN THE CONSOLIDATED STATEMENTS OF |
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September 30 |
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AOCI COMPONENTS |
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COMPREHENSIVE INCOME |
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2026 |
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|
2025 |
|
Unrealized losses (gains) on derivative contracts: |
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Truck, Parts and Other |
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Foreign-exchange contracts |
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Net sales and revenues |
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$ |
8.1 |
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$ |
5.1 |
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Cost of sales and revenues |
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2.2 |
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(23.0 |
) |
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Interest and other (income) expenses, net |
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41.0 |
|
Commodity contracts |
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Cost of sales and revenues |
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(1.7 |
) |
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(1.4 |
) |
Financial Services |
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Foreign-exchange contracts |
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Interest and other borrowing expenses |
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7.4 |
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15.9 |
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Interest-rate contracts |
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Interest and other borrowing expenses |
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80.3 |
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176.0 |
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Pre-tax expense increase |
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96.3 |
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213.6 |
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Tax benefit |
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(24.4 |
) |
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(46.2 |
) |
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After-tax expense increase |
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71.9 |
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167.4 |
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Unrealized losses (gains) on marketable debt securities: |
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Marketable debt securities |
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Investment income |
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1.0 |
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|
.6 |
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Tax benefit |
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(.2 |
) |
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(.2 |
) |
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After-tax income reduction |
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|
.8 |
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|
.4 |
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Pension plans: |
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Truck, Parts and Other |
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Actuarial loss |
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Interest and other (income) expenses, net |
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3.0 |
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1.4 |
|
Prior service costs |
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Interest and other (income) expenses, net |
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1.2 |
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1.0 |
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Pre-tax expense increase |
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4.2 |
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|
2.4 |
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Tax benefit |
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(1.0 |
) |
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(.6 |
) |
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After-tax expense increase |
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3.2 |
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|
1.8 |
|
Total reclassifications out of AOCI |
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|
$ |
75.9 |
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$ |
169.6 |
|
Stock Compensation Plans Stock-based compensation expense was $3.6 and $22.2 for the three and nine months ended September 30, 2026, and $2.8 and $20.4 for the three and nine months ended September 30, 2025, respectively. During the first nine months of 2026, the Company issued 1,132,866 common shares under deferred and stock compensation arrangements. Other Capital Stock Changes During the first nine months of 2026, the Company purchased 48,560 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.
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