Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2012

Balance Sheet Classifications and Fair Value of Derivative Financial Instruments

The following table presents the balance sheet classifications and fair value of derivative financial instruments designated under hedge accounting:

	March 31, 2012				December 31, 2011
	Assets		Liabilities		Assets		Liabilities
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	1.6			$	1.4
Deferred taxes and other liabilities			$	107.6			$	107.6
Foreign-exchange contracts:
Truck and Other:
Other current assets		.2				.1
Accounts payable, accrued expenses and other				.4				2.1
Total	$	1.8	$	108.0	$	1.5	$	109.7

The following table presents the balance sheet classifications and fair value of derivative financial instruments designated as economic hedges:

	March 31, 2012				December 31, 2011
	Assets		Liabilities		Assets		Liabilities
Economic hedges:
Interest-rate contracts:
Financial Services:
Other assets					$	.8
Deferred taxes and other liabilities			$	.5			$	.4
Foreign-exchange contracts:
Truck and Other:
Other current assets	$	.2				.1
Accounts payable, accrued expenses and other				.3				.3
Financial Services:
Other assets		.1
Deferred taxes and other liabilities								.1
Total	$	.3	$	.8	$	.9	$	.8

Cash Flow Hedging

Gains/Losses of Derivative Financial Instruments

The following table presents the pre-tax effects of derivative instruments recognized in other comprehensive income (OCI):

	Three Months Ended March 31, 2012				Three Months Ended March 31, 2011
	Interest-rate Contracts		Foreign-exchange Contracts		Interest-rate Contracts			Foreign-exchange Contracts
Loss (gain) recognized in OCI:
Truck and Other:			$	1.2				$	(4.6	)
Financial Services:	$	5.5			$	(.6	)
	$	5.5	$	1.2	$	(.6	)	$	(4.6	)

Expense reclassified from accumulated OCI into income:

	Three Months Ended March 31, 2012				Three Months Ended March 31, 2011
	Interest-rate Contracts		Foreign-exchange Contracts		Interest-rate Contracts		Foreign-exchange Contracts
Truck and Other:
Cost of sales and revenues			$	2.6			$	.5
Interest and other (income) expense, net				.4
Financial Services:
Interest and other borrowing expenses	$	2.8			$	13.9
	$	2.8	$	3.0	$	13.9	$	.5

Economic Hedges

Gains/Losses of Derivative Financial Instruments

The (income) expense recognized in earnings related to economic hedges is as follows:

	Three Months Ended March 31, 2012					Three Months Ended March 31, 2011
	Interest-rate Contracts		Foreign-exchange Contracts			Interest-rate Contracts		Foreign-exchange Contracts
Truck and Other:
Cost of sales and revenues								$	.1
Interest and other income, net			$	(.6	)
Financial Services:
Interest and other borrowing expenses (income)	$	1.0		(.3	)	$	.3		(.1	)
	$	1.0	$	(.9	)	$	.3

Fair Value Hedge | Financial Services

Gains/Losses of Derivative Financial Instruments

The expense or (income) recognized in earnings related to fair value hedges was included in Interest and other borrowing expenses in the Financial Services segment of the Consolidated Statements of Comprehensive Income as follows:

	Three Months Ended March 31
	2012			2011
Interest-rate swaps	$	2.1		$	1.5
Term notes	$	(2.2	)	$	(1.6	)