Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

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:

	September 30, 2020						December 31, 2019
	ASSETS			LIABILITIES			ASSETS			LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	39.9					$	45.8
Deferred taxes and other liabilities				$	62.1					$	31.0
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		9.5						10.1
Accounts payable, accrued expenses and other					10.8						9.2
	$	49.4		$	72.9		$	55.9		$	40.2
Derivatives not designated as hedging instruments:
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	15.9					$	.4
Accounts payable, accrued expenses and other				$	1.1					$	1.8
Financial Services:
Other assets		5.2
Deferred taxes and other liabilities					.1						2.3
	$	21.1		$	1.2		$	.4		$	4.1
Gross amounts recognized in Balance Sheets	$	70.5		$	74.1		$	56.3		$	44.3
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts		(2.7	)		(2.7	)		(.4	)		(.4	)
Financial Services:
Interest-rate contracts		(7.7	)		(7.7	)		(8.6	)		(8.6	)
Pro forma net amount	$	60.1		$	63.7		$	47.3		$	35.3

Amount of (Gain) Loss from Derivative Financial Instruments Reclassified from AOCI into Consolidated Statements of Comprehensive Income

The following table presents the amount of (gain) loss from derivative financial instruments reclassified from AOCI into the Consolidated Statements of Comprehensive Income:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2020			2019			2020			2019
Truck, Parts and Other:
Cash flow hedges	$	(8.5	)	$	(3.6	)	$	(27.2	)	$	10.5
Net investment hedges		(1.0	)		(2.3	)		(4.5	)		(2.3	)
Total	$	(9.5	)	$	(5.9	)	$	(31.7	)	$	8.2
Financial Services:
Fair value hedges		.2			.3			.7			1.2
Cash flow hedges		50.5			(35.0	)		13.2			(23.3	)
Total	$	50.7		$	(34.7	)	$	13.9		$	(22.1	)

Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges

The following table presents the amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

	September 30			December 31
	2020			2019
Financial Services
Term notes:
Carrying amount of the hedged liabilities	$	91.3		$	90.5
Cumulative basis adjustment included in the carrying amount		(1.3	)		(.5	)

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						Nine Months Ended
	September 30, 2020						September 30, 2020
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE
	CONTRACTS			CONTRACTS			CONTRACTS			CONTRACTS
(Loss) gain recognized in OCI:
Truck, Parts and Other				$	(10.8	)				$	42.6
Financial Services	$	(49.1	)				$	(27.3	)
	$	(49.1	)	$	(10.8	)	$	(27.3	)	$	42.6

	Three Months Ended					Nine Months Ended
	September 30, 2019					September 30, 2019
	INTEREST-		FOREIGN-			INTEREST-	FOREIGN-
	RATE		EXCHANGE			RATE	EXCHANGE
	CONTRACTS		CONTRACTS			CONTRACTS	CONTRACTS
Gain (loss) recognized in OCI:
Truck, Parts and Other			$	(1.0	)		$	(17.2	)
Financial Services	$	26.0
	$	26.0	$	(1.0	)		$	(17.2	)

(Gain) Loss Recognized in Earnings to Derivatives not Designated as Hedging Instruments

The (gain) loss recognized in earnings related to derivatives not designated as hedging instruments was as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2020				September 30, 2020
	INTEREST-	FOREIGN-			INTEREST-	FOREIGN-
	RATE	EXCHANGE			RATE	EXCHANGE
	CONTRACTS	CONTRACTS			CONTRACTS	CONTRACTS
Truck, Parts and Other:
Cost of sales and revenues		$	(.8	)		$	.4
Interest and other (income), net							(19.3	)
Financial Services:
Interest and other borrowing expenses			6.9				(1.9	)
Selling, general and administrative			.1
Total		$	6.2			$	(20.8	)

	Three Months Ended				Nine Months Ended
	September 30, 2019				September 30, 2019
	INTEREST-	FOREIGN-			INTEREST-	FOREIGN-
	RATE	EXCHANGE			RATE	EXCHANGE
	CONTRACTS	CONTRACTS			CONTRACTS	CONTRACTS
Truck, Parts and Other:
Cost of sales and revenues		$	.8			$	.8
Interest and other (income), net			2.0				4.6
Financial Services:
Interest and other borrowing expenses			(8.3	)			(13.0	)
Total		$	(5.5	)		$	(7.6	)