Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2012				December 31, 2011
	Assets		Liabilities		Assets		Liabilities
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	2.0			$	1.4
Deferred taxes and other liabilities			$	113.5			$	107.6
Foreign-exchange contracts:
Truck and Other:
Other current assets		.6				.1
Accounts payable, accrued expenses and other				.1				2.1
Total	$	2.6	$	113.6	$	1.5	$	109.7

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

	September 30, 2012				December 31, 2011
	Assets		Liabilities		Assets		Liabilities
Economic hedges:
Interest-rate contracts:
Financial Services:
Other assets					$	.8
Deferred taxes and other liabilities			$	1.1			$	.4
Foreign-exchange contracts:
Truck and Other:
Other current assets	$	.3				.1
Accounts payable, accrued expenses and other				.4				.3
Financial Services:
Deferred taxes and other liabilities								.1
Total	$	.3	$	1.5	$	.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				Nine Months Ended
	September 30, 2012				September 30, 2012
	Interest-rate		Foreign-exchange		Interest-rate		Foreign-exchange
	Contracts		Contracts		Contracts		Contracts
Loss recognized in OCI:
Truck and Other			$	1.3			$	2.2
Financial Services	$	5.7			$	29.4
	$	5.7	$	1.3	$	29.4	$	2.2
	Three Months Ended September  30, 2011				Nine Months Ended September  30, 2011
Loss (gain) recognized in OCI:
Truck and Other			$	1.8			$	(5.9	)
Financial Services	$	2.6			$	31.2
	$	2.6	$	1.8	$	31.2	$	(5.9	)

Expense reclassified from accumulated OCI into income:

	Three Months Ended						Nine Months Ended
	September 30, 2012						September 30, 2012
	Interest-rate			Foreign-exchange			Interest-rate		Foreign-exchange
	Contracts			Contracts			Contracts		Contracts
Truck and Other:
Cost of sales and revenues				$	1.6				$	4.3
Interest and other expense, net					.4					.4
Financial Services:
Interest and other borrowing expenses	$	1.6					$	17.7
	$	1.6		$	2.0		$	17.7	$	4.7
	Three Months Ended September 30, 2011						Nine Months Ended September 30, 2011
Truck and Other:
Cost of sales and revenues				$	(.7	)			$	(3.3	)
Financial Services:
Interest and other borrowing expenses	$	(16.3	)				$	20.2
	$	(16.3	)	$	(.7	)	$	20.2	$	(3.3	)

Economic Hedges

Gains/Losses of Derivative Financial Instruments

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

	Three Months Ended						Nine Months Ended
	September 30, 2012						September 30, 2012
	Interest- rate			Foreign- exchange			Interest- rate			Foreign- exchange
	Contracts			Contracts			Contracts			Contracts
Truck and Other:
Cost of sales and revenues										$	(.3	)
Interest and other expense, net				$	2.0						(.4	)
Financial Services:
Interest and other borrowing (income) expenses	$	1.6			(.5	)	$	1.5			.6
	$	1.6		$	1.5		$	1.5		$	(.1	)
	Three Months Ended September  30, 2011						Nine Months Ended September  30, 2011
Truck and Other:
Cost of sales and revenues				$	.1					$	.1
Interest and other (income) expense, net					(.3	)					(.3	)
Financial Services:
Interest and other borrowing income	$	(5.0	)		(.5	)	$	(5.0	)	$	(1.6	)
	$	(5.0	)	$	(.7	)	$	(5.0	)	$	(1.8	)

Financial Services | Fair Value Hedge

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						Nine Months Ended
	September 30						September 30
	2012			2011			2012			2011
Interest-rate swaps	$	(2.4	)	$	(5.2	)	$	(4.0	)	$	(4.7	)
Term notes	$	3.2		$	4.9		$	4.7		$	4.2