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, 2017						December 31, 2016
	ASSETS			LIABILITIES			ASSETS			LIABILITIES

Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	55.6					$	109.7
Deferred taxes and other liabilities				$	72.7					$	46.3
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		2.3						3.9
Accounts payable, accrued expenses and other					6.0						1.9


	$	57.9		$	78.7		$	113.6		$	48.2


Economic hedges:
Interest-rate contracts:
Financial Services:
Deferred taxes and other liabilities										$	.1
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	1.1					$	.8
Accounts payable, accrued expenses and other				$	.7						.3
Financial Services:
Other assets		.6						4.0
Deferred taxes and other liabilities					3.5						.7


	$	1.7		$	4.2		$	4.8		$	1.1


Gross amounts recognized in Balance Sheet	$	59.6		$	82.9		$	118.4		$	49.3
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts		(.2	)		(.2	)		(1.0	)		(1.0	)
Financial Services:
Interest-rate contracts		(7.8	)		(7.8	)		(15.4	)		(15.4	)
Foreign-exchange contracts		(.8	)		(.8	)		(.1	)		(.1	)


Pro forma net amount	$	50.8		$	74.1		$	101.9		$	32.8

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
	2017			2016			2017			2016
Interest-rate swaps	$	(.7	)	$	(3.0	)	$	.6		$	(5.0	)
Term notes		.9			2.8			(.4	)		4.4

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 June 30, 2017						Six Months Ended June 30, 2017
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS
Loss recognized in OCI:
Truck, Parts and Other				$	(1.7	)				$	(20.4	)
Financial Services	$	(38.1	)				$	(83.1	)

	$	(38.1	)	$	(1.7	)	$	(83.1	)	$	(20.4	)


	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS
Gain (loss) recognized in OCI:
Truck, Parts and Other				$	9.6					$	9.9
Financial Services	$	8.4					$	(53.3	)

	$	8.4		$	9.6		$	(53.3	)	$	9.9

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


	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS		FOREIGN- EXCHANGE CONTRACTS
Truck, Parts and Other:
Net sales and revenues				$	12.1				$	16.3
Cost of sales and revenues					(1.3	)				(1.2	)
Interest and other expense (income), net					.6					.6
Financial Services:
Interest and other borrowing expenses	$	40.0					$	85.8

Total	$	40.0		$	11.4		$	85.8	$	15.7


	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS		FOREIGN- EXCHANGE CONTRACTS
Truck, Parts and Other:
Net sales and revenues				$	(1.7	)			$	(6.5	)
Cost of sales and revenues					.6					.6
Interest and other expense (income), net					.2					1.9
Financial Services:
Interest and other borrowing expenses	$	(7.6	)				$	50.3

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

Gains/Losses of Derivative Financial Instruments

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


	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS
Truck, Parts and Other:
Cost of sales and revenues				$	.1					$	.7
Interest and other expense (income), net					.7						4.2
Financial Services:
Interest and other borrowing expenses	$	(.1	)		11.4		$	(.1	)		44.6
Selling, general and administrative					(2.3	)					(13.1	)

Total	$	(.1	)	$	9.9		$	(.1	)	$	36.4


	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
	INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS			INTEREST- RATE CONTRACTS			FOREIGN- EXCHANGE CONTRACTS
Truck, Parts and Other:
Cost of sales and revenues				$	.1					$	1.1
Interest and other expense (income), net					.9						.8
Financial Services:
Interest and other borrowing expenses					(10.6	)					(8.2	)
Selling, general and administrative					.5						(1.6	)

Total				$	(9.1	)				$	(7.9	)