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, 2016						December 31, 2015
	Assets			Liabilities			Assets			Liabilities
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	100.7					$	132.2
Deferred taxes and other liabilities				$	53.2					$	46.7
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		9.6						3.9
Accounts payable, accrued expenses and other					.6						.2


Total	$	110.3		$	53.8		$	136.1		$	46.9


Economic hedges:
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	.6					$	.9
Accounts payable, accrued expenses and other				$	.6					$	.3
Financial Services:
Other assets		4.5						.3
Deferred taxes and other liabilities					.6						1.0


Total	$	5.1		$	1.2		$	1.2		$	1.3


Gross amounts recognized in Balance Sheets	$	115.4		$	55.0		$	137.3		$	48.2
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts		(.5	)		(.5	)		(.4	)		(.4	)
Financial Services:
Interest-rate contracts		(10.9	)		(10.9	)		(3.3	)		(3.3	)
Foreign-exchange contracts								(.2	)		(.2	)


Pro forma net amount	$	104.0		$	43.6		$	133.4		$	44.3

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 (Loss) as follows:


	Three Months Ended						Six Months Ended
	June 30						June 30
	2016			2015			2016			2015
Interest-rate swaps	$	(3.0	)	$	.3		$	(5.0	)	$	(1.1	)
Term notes		2.8			(.5	)		4.4			.6

Gains/Losses of Derivative Financial Instruments

The expense (income) recognized in earnings related to foreign-exchange contracts was as follows:


	Three Months Ended						Six Months Ended
	June 30						June 30
	2016			2015			2016			2015
Truck, Parts and Other:
Cost of sales and revenues	$	.1		$	(.3	)	$	1.1		$	(2.0	)
Interest and other expense, net		.9			(.5	)		.8			1.6
Financial Services:
Interest and other borrowing expenses		(10.6	)		(3.3	)		(8.2	)		(17.8	)
Selling, general and administrative		.5			(.4	)		(1.6	)		(.6	)


Total	$	(9.1	)	$	(4.5	)	$	(7.9	)	$	(18.8	)

Gains/Losses of Derivative Financial Instruments

The following table presents the pre-tax effects of derivative instruments recognized in other comprehensive income (loss) (OCI):


	Three Months Ended						Six Months Ended
	June 30, 2016						June 30, 2016
	Interest-			Foreign-			Interest-			Foreign-
	Rate			Exchange			Rate			Exchange
	Contracts			Contracts			Contracts			Contracts
Gain (loss) recognized in OCI:
Truck, Parts and Other				$	9.6					$	9.9
Financial Services	$	8.4					$	(53.3	)


Total	$	8.4		$	9.6		$	(53.3	)	$	9.9


	Three Months Ended						Six Months Ended
	June 30, 2015						June 30, 2015
	Interest-			Foreign-			Interest-			Foreign-
	Rate			Exchange			Rate			Exchange
	Contracts			Contracts			Contracts			Contracts
(Loss) gain recognized in OCI:
Truck, Parts and Other				$	(3.0	)				$	(3.0	)
Financial Services	$	(19.9	)				$	11.8


Total	$	(19.9	)	$	(3.0	)	$	11.8		$	(3.0	)

Expense (income) reclassified out of AOCI into income was as follows:


	Three Months Ended						Six Months Ended
	June 30, 2016						June 30, 2016
	Interest-			Foreign-			Interest-			Foreign-
	Rate			Exchange			Rate			Exchange
	Contracts			Contracts			Contracts			Contracts
Truck, Parts and Other:
Net sales and revenues				$	(1.7	)				$	(6.5	)
Cost of sales and revenues					.6						.6
Interest and other expense, net					.2						1.9
Financial Services:
Interest and other borrowing expenses	$	(7.6	)				$	50.3


Total	$	(7.6	)	$	(.9	)	$	50.3		$	(4.0	)


	Three Months Ended						Six Months Ended
	June 30, 2015						June 30, 2015
	Interest-			Foreign-			Interest-			Foreign-
	Rate			Exchange			Rate			Exchange
	Contracts			Contracts			Contracts			Contracts
Truck, Parts and Other:
Net sales and revenues				$	.3					$	.3
Cost of sales and revenues					.2						3.4
Interest and other expense, net					.2						(1.7	)
Financial Services:
Interest and other borrowing expenses	$	25.4					$	(7.8	)


Total	$	25.4		$	.7		$	(7.8	)	$	2.0