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Segment Information | 6 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Segment Information | NOTE I - Segment Information PACCAR operates in three principal segments: Truck, Parts and Financial Services. The Company evaluates the performance of its Truck and Parts segments based on operating profits, which excludes investment income, other income and expense and income taxes. The Financial Services segment’s performance is evaluated based on income before income taxes. The accounting policies of the reportable segments are the same as those applied in the consolidated financial statements as described in Note A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Truck and Parts The Truck segment includes the design and manufacture of high-quality, light-, medium- and heavy-duty commercial trucks and the Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles, both of which are sold through the same network of independent dealers. These segments derive a large proportion of their revenues and operating profits from operations in North America and Europe. The Truck segment incurs substantial costs to design, manufacture and sell trucks to its customers. The sale of new trucks provides the Parts segment with the basis for parts sales that may continue over the life of the truck, but are generally concentrated in the first five years after truck delivery. To reflect the benefit the Parts segment receives from costs incurred by the Truck segment, certain expenses are allocated from the Truck segment to the Parts segment. The expenses allocated are based on a percentage of the average annual expenses for factory overhead, engineering, research and development and SG&A expenses for the preceding five years. The allocation is based on the ratio of the average parts direct margin dollars (net sales less material and labor costs) to the total truck and parts direct margin dollars for the previous five years. The Company believes such expenses have been allocated on a reasonable basis. Truck segment assets related to the indirect expense allocation are not allocated to the Parts segment. Financial Services The Financial Services segment derives its earnings primarily from financing or leasing of PACCAR products and services provided to truck customers and dealers. Revenues are primarily generated from operations in North America and Europe. In Europe, the marketing of used trucks, including those units sold by the Truck segment subject to an RVG, is performed by the Financial Services segment. When a customer returns the truck at the end of the RVG contract, the Company’s Truck segment records a reduction in an RVG liability and the Company’s Financial Services segment records a used truck asset and revenue from the subsequent sale. Certain gains and losses from the sale of these used trucks are shared with the Truck segment. Other Included in Other is the Company’s industrial winch manufacturing business as well as sales, income and expenses not attributable to a reportable segment. Other also includes non-service cost components of pension expense and a portion of corporate expenses.
| Three Months Ended |  |  | Six Months Ended |
| June 30 |  |  | June 30 |
|  | 2023 |  |  |  | 2022 |  |  |  | 2023 |  |  |  | 2022 |
Net sales and revenues: |  |  |  |  |  |  |  |  |  |  |
Truck | $ | 6,923.0 |  |  | $ | 5,499.5 |  |  | $ | 13,501.7 |  |  | $ | 10,335.0 |
Less intersegment |  | (95.5 | ) |  |  | (163.1 | ) |  |  | (260.4 | ) |  |  | (301.5 | )
External customers |  | 6,827.5 |  |  |  | 5,336.4 |  |  |  | 13,241.3 |  |  |  | 10,033.5 |
Parts |  | 1,618.4 |  |  |  | 1,450.6 |  |  |  | 3,259.5 |  |  |  | 2,855.9 |
Less intersegment |  | (19.5 | ) |  |  | (15.9 | ) |  |  | (37.6 | ) |  |  | (32.3 | )
External customers |  | 1,598.9 |  |  |  | 1,434.7 |  |  |  | 3,221.9 |  |  |  | 2,823.6 |
Other |  | 14.9 |  |  |  | 15.1 |  |  |  | 28.2 |  |  |  | 35.5 |
|  | 8,441.3 |  |  |  | 6,786.2 |  |  |  | 16,491.4 |  |  |  | 12,892.6 |
Financial Services |  | 439.8 |  |  |  | 372.5 |  |  |  | 863.0 |  |  |  | 738.7 |
| $ | 8,881.1 |  |  | $ | 7,158.7 |  |  | $ | 17,354.4 |  |  | $ | 13,631.3 |
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |
Truck | $ | 948.3 |  |  | $ | 422.1 |  |  | $ | 1,842.6 |  |  | $ | 698.8 |
Parts |  | 419.3 |  |  |  | 353.3 |  |  |  | 857.9 |  |  |  | 693.5 |
Other* |  | (6.5 | ) |  |  | (3.1 | ) |  |  | (618.2 | ) |  |  | 6.9 |
|  | 1,361.1 |  |  |  | 772.3 |  |  |  | 2,082.3 |  |  |  | 1,399.2 |
Financial Services |  | 144.7 |  |  |  | 144.4 |  |  |  | 293.5 |  |  |  | 291.4 |
Investment income |  | 62.7 |  |  |  | 5.4 |  |  |  | 111.7 |  |  |  | 2.9 |
| $ | 1,568.5 |  |  | $ | 922.1 |  |  | $ | 2,487.5 |  |  | $ | 1,693.5 |
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |
Truck | $ | 99.2 |  |  | $ | 77.7 |  |  | $ | 199.0 |  |  | $ | 149.3 |
Parts |  | 3.6 |  |  |  | 3.3 |  |  |  | 7.3 |  |  |  | 6.5 |
Other |  | 6.0 |  |  |  | 6.2 |  |  |  | 12.3 |  |  |  | 11.9 |
|  | 108.8 |  |  |  | 87.2 |  |  |  | 218.6 |  |  |  | 167.7 |
Financial Services |  | 114.6 |  |  |  | 109.7 |  |  |  | 225.9 |  |  |  | 214.9 |
| $ | 223.4 |  |  | $ | 196.9 |  |  | $ | 444.5 |  |  | $ | 382.6 |
* In the first half 2023, Other includes a $600.0 million non-recurring charge related to civil litigation in Europe (EC-related claims) which is discussed in Note M.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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