Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

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, 2021						December 31, 2020
	ASSETS			LIABILITIES			ASSETS			LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	18.7					$	16.4
Deferred taxes and other liabilities				$	54.3					$	116.1
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		22.9						2.7
Accounts payable, accrued expenses and other					5.7						35.9
Financial Services:
Other current assets		1.7
Deferred taxes and other liabilities					.5						1.2
Commodity contracts:
Truck, Parts and Other:
Other current assets					9.8
	$	43.3		$	70.3		$	19.1		$	153.2
Derivatives not designated as hedging instruments:
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	.2					$	1.1
Accounts payable, accrued expenses and other				$	1.5					$	3.3
Financial Services:
Other assets		.2						.3
Deferred taxes and other liabilities					.1						3.4
	$	.4		$	1.6		$	1.4		$	6.7
Gross amounts recognized in Balance Sheets	$	43.7		$	71.9		$	20.5		$	159.9
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts	$	(4.1	)	$	(4.1	)	$	(2.1	)	$	(2.1	)
Financial Services:
Foreign-exchange contracts		(.5	)		(.5	)
Interest-rate contracts		(8.5	)		(8.5	)		(12.0	)		(12.0	)
Pro forma net amount	$	30.6		$	58.8		$	6.4		$	145.8

Amount of Loss (Gain) from Derivative Financial Instruments Recorded in Consolidated Statements of Comprehensive Income

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

	Three Months Ended						Nine Months Ended
	September 30, 2021						September 30, 2021
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE
Truck, Parts and Other:
Net sales and revenues
Cash flow hedges				$	1.3					$	14.9
Cost of sales and revenues
Cash flow hedges					(3.5	)					2.5
Derivatives not designated as hedging instruments					17.8						8.8
Interest and other (income), net
Cash flow hedges					(.5	)					(.2	)
Net investment hedges					(.7	)					(2.4	)
Derivatives not designated as hedging instruments					(.6	)					1.0
				$	13.8					$	24.6
Financial Services:
Interest and other borrowing expenses
Cash flow hedges	$	(35.4	)				$	(45.9	)
Fair value hedges								.1
Derivatives not designated as hedging instruments				$	(.3	)				$	(.7	)
	$	(35.4	)	$	(.3	)	$	(45.8	)	$	(.7	)
Total	$	(35.4	)	$	13.5		$	(45.8	)	$	23.9

	Three Months Ended					Nine Months Ended
	September 30, 2020					September 30, 2020
	INTEREST-		FOREIGN-			INTEREST-		FOREIGN-
	RATE		EXCHANGE			RATE		EXCHANGE
Truck, Parts and Other:
Net sales and revenues
Cash flow hedges			$	(10.6	)			$	(22.2	)
Cost of sales and revenues
Cash flow hedges				2.5					.2
Derivatives not designated as hedging instruments				(.8	)				.4
Interest and other (income), net
Cash flow hedges				(.4	)				(5.2	)
Net investment hedges				(1.0	)				(4.5	)
Derivatives not designated as hedging instruments									(19.3	)
			$	(10.3	)			$	(50.6	)
Financial Services:
Interest and other borrowing expenses
Cash flow hedges	$	50.5				$	13.2
Fair value hedges		.2					.7
Derivatives not designated as hedging instruments			$	6.9				$	(1.9	)
Selling, general and administrative				.1
	$	50.7	$	7.0		$	13.9	$	(1.9	)
Total	$	50.7	$	(3.3	)	$	13.9	$	(52.5	)

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
	2021		2020
Financial Services
Term notes:
Carrying amount of the hedged liabilities	$	561.0	$	90.9
Cumulative basis adjustment included in the carrying amount		3.3		(.9	)

Pre-Tax Effects of Gain (Loss) on Cash Flow Hedges recognized in OCI

The following tables presents the pre-tax effects of gain (loss) on cash flow hedges recognized in other comprehensive income (loss) (OCI):

	Three Months Ended									Nine Months Ended
	September 30, 2021									September 30, 2021
	INTEREST-			FOREIGN-						INTEREST-			FOREIGN-
	RATE			EXCHANGE			COMMODITY			RATE			EXCHANGE			COMMODITY
Gain (loss) recognized in OCI:
Truck, Parts and Other				$	2.3		$	(9.8	)				$	(6.7	)	$	(9.8	)
Financial Services	$	43.4			.6					$	67.1			(2.3	)
	$	43.4		$	2.9		$	(9.8	)	$	67.1		$	(9.0	)	$	(9.8	)
	Three Months Ended									Nine Months Ended
	September 30, 2020									September 30, 2020
	INTEREST-			FOREIGN-						INTEREST-			FOREIGN-
	RATE			EXCHANGE			COMMODITY			RATE			EXCHANGE			COMMODITY
(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