Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Balance Sheet Classifications, Fair Value, Gross and Pro-Forma Net Amounts of Derivative Financial Instruments

The following table presents the balance sheet classification, fair value, gross and pro-forma net amounts of derivative financial instruments:

	June 30, 2014						December 31, 2013
	Assets			Liabilities			Assets			Liabilities
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	30.5					$	46.3
Deferred taxes and other liabilities				$	62.0					$	67.7
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		.1
Accounts payable, accrued expenses and other					1.6						.6
Total	$	30.6		$	63.6		$	46.3		$	68.3
Economic hedges:
Interest-rate contracts:
Financial Services:
Deferred taxes and other liabilities				$	.5
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	.3					$	.6
Accounts payable, accrued expenses and other					.6					$	.2
Financial Services:
Other assets		.1						1.1
Deferred taxes and other liabilities					1.9						.1
Total	$	.4		$	3.0		$	1.7		$	.3
Gross amounts recognized in Balance Sheet	$	31.0		$	66.6		$	48.0		$	68.6
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts		(.2	)		(.2	)		(.2	)		(.2	)
Financial Services:
Interest-rate contracts		(10.6	)		(10.6	)		(16.1	)		(16.1	)
Pro-forma net amount	$	20.2		$	55.8		$	31.7		$	52.3

Cash Flow Hedging

Gains/Losses of Derivative Financial Instruments

The following table presents the pre-tax effects of derivative instruments recognized in OCI:

	Three Months Ended						Six Months Ended
	June 30, 2014						June 30, 2014
	Interest- Rate Contracts			Foreign- Exchange Contracts			Interest- Rate Contracts			Foreign- Exchange Contracts
Loss recognized in OCI:
Truck, Parts and Other				$	(3.0	)				$	(2.8	)
Financial Services	$	(38.7	)				$	(30.3	)
	$	(38.7	)	$	(3.0	)	$	(30.3	)	$	(2.8	)
	Three Months Ended						Six Months Ended
	June 30, 2013						June 30, 2013
	Interest- Rate Contracts			Foreign- Exchange Contracts			Interest- Rate Contracts			Foreign- Exchange Contracts
Gain recognized in OCI:
Truck, Parts and Other				$	1.3					$	2.9
Financial Services	$	54.7					$	74.4
	$	54.7		$	1.3		$	74.4		$	2.9

Expense (income) reclassified out of AOCI into income:

	Three Months Ended June 30, 2014					Six Months Ended June 30, 2014
	Interest- Rate Contracts			Foreign- Exchange Contracts		Interest- Rate Contracts			Foreign- Exchange Contracts
Truck, Parts and Other:
Cost of sales and revenues				$	1.7				$	1.8
Interest and other (income) expense, net					.2					.1
Financial Services:
Interest and other borrowing expenses	$	38.5				$	31.6
	$	38.5		$	1.9	$	31.6		$	1.9
	Three Months Ended June 30, 2013					Six Months Ended June 30, 2013
	Interest- Rate Contracts			Foreign- Exchange Contracts		Interest- Rate Contracts			Foreign- Exchange Contracts
Truck, Parts and Other:
Cost of sales and revenues									$	(2.3	)
Interest and other (income) expense, net				$	.5					.3
Financial Services:
Interest and other borrowing expenses	$	(46.3	)			$	(61.9	)
	$	(46.3	)	$	.5	$	(61.9	)	$	(2.0	)

Economic Hedges

Gains/Losses of Derivative Financial Instruments

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

	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	Interest- Rate Contracts			Foreign- Exchange Contracts			Interest- Rate Contracts			Foreign- Exchange Contracts
Truck, Parts and Other:
Cost of sales and revenues				$	(.4	)				$	(.2	)
Interest and other (income) expense, net					1.2						.3
Financial Services:
Interest and other borrowing expenses	$	.3			4.3		$	.3			4.8
	$	.3		$	5.1		$	.3		$	4.9
	Three Months Ended June 30, 2013						Six Months Ended June 30, 2013
	Interest- Rate Contracts			Foreign- Exchange Contracts			Interest- Rate Contracts			Foreign- Exchange Contracts
Truck, Parts and Other:
Cost of sales and revenues				$	.5					$	.4
Interest and other (income) expense, net					(1.3	)					.4
Financial Services:
Interest and other borrowing expenses	$	(.1	)		(4.9	)	$	(1.4	)		(4.6	)
	$	(.1	)	$	(5.7	)	$	(1.4	)	$	(3.8	)

Financial Services | Fair Value Hedging [Member]

Gains/Losses of Derivative Financial Instruments

The (income) or expense 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						Six Months Ended
	June 30						June 30
	2014			2013			2014			2013
Interest-rate swaps	$	(.6	)	$	.2		$	(.5	)	$	.4
Term notes		(.1	)		(1.3	)		(1.2	)		(2.7	)