Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Balance Sheet Classifications and Fair Value of Derivative Financial Instruments

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

At December 31,	2013				2012
	ASSETS		LIABILITIES		ASSETS		LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	46.3			$	4.6
Deferred taxes and other liabilities			$	67.7			$	111.7
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets						.2
Accounts payable, accrued expenses and other				.6				.1
Total	$	46.3	$	68.3	$	4.8	$	111.8
Economic hedges:
Interest-rate contracts:
Financial Services:
Deferred taxes and other liabilities							$	.6
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	.6			$	.3
Accounts payable, accrued expenses and other			$	.2				.2
Financial Services:
Other assets		1.1
Deferred taxes and other liabilities				.1				.4
Total	$	1.7	$	.3	$	.3	$	1.2

Balance Sheet Classification of Gross and Proforma Net Amounts of Derivative Financial Instruments

The following tables present the balance sheet classification of the gross and pro forma net amounts of derivative financial instruments:

At December 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	$	.6	$	(.2	)	$	.4
Financial Services
Interest-rate contracts		46.3		(16.1	)		30.2
Foreign-exchange contracts		1.1					1.1
Total derivative assets	$	48.0	$	(16.3	)	$	31.7
Liabilities:
Truck, Parts and Other
Foreign-exchange contracts	$	.8	$	(.2	)	$	.6
Financial Services
Interest-rate contracts		67.7		(16.1	)		51.6
Foreign-exchange contracts		.1					.1
Total derivative liabilities	$	68.6	$	(16.3	)	$	52.3
At 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 OCI:

Year Ended December 31,	2013						2012						2011
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS
Gain (loss) recognized in other comprehensive income:
Truck, Parts and Other				$	(1.2	)				$	(1.3	)				$	2.3
Financial Services	$	54.4					$	(27.9	)				$	(55.2	)
Total	$	54.4		$	(1.2	)	$	(27.9	)	$	(1.3	)	$	(55.2	)	$	2.3
Expense (income) reclassified out of accumulated other comprehensive (income) loss into income:
Truck, Parts and Other:
Cost of sales and revenues				$	1.0					$	3.2					$	(4.1	)
Interest and other expense (income), net					(.6	)					.2
Financial Services:
Interest and other borrowing expenses	$	(36.0	)				$	19.3					$	51.8
Total	$	(36.0	)	$	.4		$	19.3		$	3.4		$	51.8		$	(4.1	)

Economic Hedges

Gains/Losses of Derivative Financial Instruments

The expense (income) recognized in earnings related to economic hedges is as follows:
Year Ended December 31,	2013						2012					2011
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS		FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS
Truck, Parts and Other:
Cost of sales and revenues				$	(1.3	)			$	(.3	)				$	.2
Interest and other expense (income), net					.3					(.5	)					(2.8	)
Financial Services:
Interest and other borrowing expenses	$	(1.5	)		(9.6	)	$	1.0		.6		$	(4.1	)		(1.2	)
Total	$	(1.5	)	$	(10.6	)	$	1.0	$	(.2	)	$	(4.1	)	$	(3.8	)

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 Income as follows:

Year Ended December 31,	2013			2012			2011
Interest-rate swaps	$	.7		$	(3.8	)	$	(4.4	)
Term notes		(.8	)		4.5			3.7