Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Balance Sheet Classifications and Fair Value of Derivative Financial Instruments

The following table presents the balance sheet locations and fair value of derivative financial instruments:

	March 31, 2013				December 31, 2012
	Assets		Liabilities		Assets		Liabilities
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	12.0			$	4.6
Deferred taxes and other liabilities			$	91.6			$	111.7
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		.2				.2
Accounts payable, accrued expenses and other				1.1				.1
Total	$	12.2	$	92.7	$	4.8	$	111.8
	March 31, 2013				December 31, 2012
	Assets		Liabilities		Assets		Liabilities
Economic hedges:
Interest-rate contracts:
Financial Services:
Other assets	$	.7
Deferred taxes and other liabilities							$	.6
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		.2			$	.3
Accounts payable, accrued expenses and other			$	.3				.2
Financial Services:
Other assets		.3
Deferred taxes and other liabilities								.4
Total	$	1.2	$	.3	$	.3	$	1.2

Gross and Proforma Net Amounts In Statement of Financial Position of Derivative Financial Instruments

The following tables present the gross and pro forma net amounts in the statement of financial position of derivative financial instruments.

As of March 31, 2013	Gross Amount Recognized  in Balance Sheet		Amount Not Offset  in Financial Instruments			Pro Forma  Net Amount
Assets:
Truck, Parts and Other
Foreign exchange contracts	$	.4				$	.4
Financial Services
Interest rate contracts		12.7	$	(6.0	)		6.7
Foreign exchange contracts		.3					.3
Total Derivative Assets	$	13.4	$	(6.0	)	$	7.4
Liabilities
Truck, Parts and Other
Foreign exchange contracts	$	1.4				$	1.4
Financial Services
Interest rate contracts		91.6	$	(6.0	)		85.6
Total Derivative Liabilities	$	93.0	$	(6.0	)	$	87.0
As of December, 31, 2012	Gross Amount Recognized in Balance Sheet		Amount Not Offset in Financial  Instruments			Pro Forma Net Amount
Assets:
Truck, Parts and Other
Foreign exchange contracts	$	.5				$	.5
Financial Services
Interest rate contracts		4.6	$	(2.6	)		2.0
Total Derivative Assets	$	5.1	$	(2.6	)	$	2.5
Liabilities
Truck, Parts and Other
Foreign exchange contracts	$	.3				$	.3
Financial Services
Interest rate contracts		112.3	$	(2.6	)		109.7
Foreign exchange contracts		.4					.4
Total Derivative Liabilities	$	113.0	$	(2.6	)	$	110.4

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 and earnings:

Three Months Ended March 31,	2013						2012
	Interest-Rate Contracts			Foreign-Exchange Contracts			Interest-Rate Contracts		Foreign-Exchange Contracts
Loss (gain) recognized in OCI:
Truck, Parts and Other:				$	(1.6	)			$	1.2
Financial Services:	$	(19.7	)				$	5.5
	$	(19.7	)	$	(1.6	)	$	5.5	$	1.2

Expense (income) reclassified out of accumulated other comprehensive (loss) income into income:

Three Months Ended March 31,	2013						2012
	Interest-Rate Contracts			Foreign-Exchange Contracts			Interest-Rate Contracts		Foreign-Exchange Contracts
Truck, Parts and Other:
Cost of sales and revenues				$	(2.3	)			$	2.6
Interest and other expense (income), net					(.2	)				.4
Financial Services:
Interest and other borrowing expenses	$	(15.6	)				$	2.8
	$	(15.6	)	$	(2.5	)	$	2.8	$	3.0

Economic Hedge

Gains/Losses of Derivative Financial Instruments

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

Three Months Ended March 31,	2013						2012
	Interest-Rate Contracts			Foreign-Exchange Contracts			Interest-Rate Contracts		Foreign-Exchange Contracts
Truck, Parts and Other:
Cost of sales and revenues				$	(.1	)
Interest and other income, net					1.7				$	(.6	)
Financial Services:
Interest and other borrowing expenses (income)	$	(1.3	)		.3		$	1.0		(.3	)
	$	(1.3	)	$	1.9		$	1.0	$	(.9	)

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 March 31,	2013			2012
Interest-rate swaps	$	.2		$	2.1
Term notes		(.2	)		(2.2	)