Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

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:

At December 31,	2015						2014
	ASSETS			LIABILITIES			ASSETS			LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	132.2					$	82.7
Deferred taxes and other liabilities				$	46.7					$	45.7
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		3.9						1.2
Accounts payable, accrued expenses and other					.2						1.9
Total	$	136.1		$	46.9		$	83.9		$	47.6
Economic hedges:
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	.9					$	1.9
Accounts payable, accrued expenses and other				$	.3					$	.9
Financial Services:
Other assets		.3						3.4
Deferred taxes and other liabilities					1.0
Total	$	1.2		$	1.3		$	5.3		$	.9
Gross amounts recognized in Balance Sheet	$	137.3		$	48.2		$	89.2		$	48.5
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts		(.4	)		(.4	)		(.9	)		(.9	)
Financial Services:
Interest-rate contracts		(3.3	)		(3.3	)		(3.9	)		(3.9	)
Foreign-exchange contracts		(.2	)		(.2	)
Pro-forma net amount	$	133.4		$	44.3		$	84.4		$	43.7

Cash Flow Hedging

Gains/Losses of Derivative Financial Instruments

The following table presents the pre-tax effects of derivative instruments recognized in other comprehensive (loss) income (OCI):
Year Ended December 31,	2015						2014						2013
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS
Gain (loss) recognized in OCI:
Truck, Parts and Other				$	4.9					$	1.7					$	(1.2	)
Financial Services	$	33.8					$	24.4					$	54.4
Total	$	33.8		$	4.9		$	24.4		$	1.7		$	54.4		$	(1.2	)
Expense (income) reclassified out of AOCI into income was as follows:
Year Ended December 31,	2015						2014						2013
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS
Truck, Parts and Other:
Net sales and revenues				$	(.1	)
Cost of sales and revenues					3.4					$	.3					$	1.0
Interest and other expense, net					(4.1	)					(2.1	)					(.6	)
Financial Services:
Interest and other borrowing expenses	$	(28.5	)				$	(21.7	)				$	(36.0	)
Total	$	(28.5	)	$	(.8	)	$	(21.7	)	$	(1.8	)	$	(36.0	)	$	.4

Economic Hedges

Gains/Losses of Derivative Financial Instruments

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

Year Ended December 31,	2015				2014				2013
	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		$	(.7	)		$	(5.3	)				$	(1.3	)
Interest and other expense, net			3.0				3.8						.3
Financial Services:
Interest and other borrowing expenses			(7.6	)			4.2		$	(1.5	)		(9.6	)
Selling, general and administrative			(2.3	)			5.2
Total		$	(7.6	)		$	7.9		$	(1.5	)	$	(10.6	)

Financial Services | Fair Value Hedging

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 Income as follows:

Year Ended December 31,	2015			2014			2013
Interest-rate swaps	$	(.9	)	$	.1		$	.7
Term notes		.2			(2.6	)		(5.1	)