| N. | STOCKHOLDERS’ EQUITY |
Accumulated Other Comprehensive Income (Loss): The components of accumulated other comprehensive income (loss) (AOCI) as of December 31, 2013 and 2012 and the changes in AOCI, net of tax, included in the Consolidated Balance Sheets, consisted of the following:
| UNREALIZED GAINS AND (LOSSES) ON DERIVATIVE CONTRACTS |
UNREALIZED GAINS AND (LOSSES) ON MARKETABLE DEBT SECURITIES |
PENSION PLANS |
FOREIGN CURRENCY TRANSLATION |
TOTAL | ||||||||||||||||
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Balance at December 31, 2012 |
$ | (27.2 | ) | $ | 6.6 | $ | (496.5 | ) | $ | 357.6 | $ | (159.5 | ) | |||||||
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Recorded into AOCI |
36.9 | (6.1 | ) | 204.8 | (71.3 | ) | 164.3 | |||||||||||||
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Reclassified out of AOCI |
(24.8 | ) | 1.2 | 29.5 | (2.0 | ) | 3.9 | |||||||||||||
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Net other comprehensive income (loss) |
12.1 | (4.9 | ) | 234.3 | (73.3 | ) | 168.2 | |||||||||||||
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Balance at December 31, 2013 |
$ | (15.1 | ) | $ | 1.7 | $ | (262.2 | ) | $ | 284.3 | $ | 8.7 | ||||||||
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Reclassifications out of AOCI during the year ended December 31, 2013 are as follows:
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AOCI COMPONENTS |
LINE ITEM IN THE CONSOLIDATED STATEMENT OF INCOME |
AMOUNT RECLASSIFIED OUT OF AOCI |
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Unrealized gains and losses on derivative contracts: |
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Truck, Parts and Other |
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Foreign-exchange contracts |
Cost of sales and revenues | $ | 1.0 | |||
| Interest and other expense (income), net | (.6 | ) | ||||
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Financial Services |
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Interest-rate contracts |
Interest and other borrowing expenses | (36.0 | ) | |||
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| Pre-tax expense reduction | (35.6 | ) | ||||
| Tax expense | 10.8 | |||||
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| After-tax expense reduction | (24.8 | ) | ||||
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Unrealized gains and losses on marketable debt securities: |
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Marketable debt securities |
Investment income | 1.7 | ||||
| Tax expense | (.5 | ) | ||||
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| After-tax income increase | 1.2 | |||||
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Pension plans: |
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Truck, Parts and Other |
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Prior service costs |
Cost of sales and revenues $.4, SG&A $.6, R&D $.3 | 1.3 | ||||
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Actuarial loss |
Cost of sales and revenues $21.4, SG&A $20.3 | 41.7 | ||||
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Financial Services |
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Actuarial loss |
SG&A | 2.3 | ||||
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| Pre-tax expense increase | 45.3 | |||||
| Tax benefit | (15.8 | ) | ||||
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| After-tax expense increase | 29.5 | |||||
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Foreign currency translation: |
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Truck, Parts and Other |
Interest and other expense (income), net | (1.1 | ) | |||
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Financial Services |
Interest and other borrowing expenses | (.9 | ) | |||
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| Expense reduction | (2.0 | ) | ||||
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Total reclassifications out of AOCI |
$ | 3.9 | ||||
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Other Capital Stock Changes: In 2012 and 2011, the Company purchased and retired 4.2 million and 9.2 million treasury shares, respectively. In 2013, there were no purchases or retirements of treasury shares.