Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

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,	2016						2015
	ASSETS			LIABILITIES			ASSETS			LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	109.7					$	132.2
Deferred taxes and other liabilities				$	46.3					$	46.7
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		3.9						3.9
Accounts payable, accrued expenses and other					1.9						.2
	$	113.6		$	48.2		$	136.1		$	46.9
Economic hedges:
Interest-rate contracts:
Financial Services:
Deferred taxes and other liabilities				$	.1
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets	$	.8					$	.9
Accounts payable, accrued expenses and other					.3					$	.3
Financial Services:
Other assets		4.0						.3
Deferred taxes and other liabilities					.7						1.0
	$	4.8		$	1.1		$	1.2		$	1.3
Gross amounts recognized in Balance Sheet	$	118.4		$	49.3		$	137.3		$	48.2
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts		(1.0	)		(1.0	)		(.4	)		(.4	)
Financial Services:
Interest-rate contracts		(15.4	)		(15.4	)		(3.3	)		(3.3	)
Foreign-exchange contracts		(.1	)		(.1	)		(.2	)		(.2	)
Pro-forma net amount	$	101.9		$	32.8		$	133.4		$	44.3

Fair Value Hedging | Financial Services

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,	2016			2015			2014
Interest-rate swaps	$	5.5		$	(.9	)	$	.1
Term notes		(6.4	)		.2			(2.6	)

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,	2016					2015				2014
	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			$	(.4	)
Cost of sales and revenues				.4			$	(.7	)		$	(5.3	)
Interest and other expense, net				14.9				3.0				3.8
Financial Services:
Interest and other borrowing expenses	$	.1		(28.4	)			(7.6	)			4.2
Selling, general and administrative				1.8				(2.3	)			5.2
	$	.1	$	(11.7	)		$	(7.6	)		$	7.9

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,	2016						2015						2014
	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				$	24.4					$	4.9					$	1.7
Financial Services	$	(30.9	)				$	33.8					$	24.4
	$	(30.9	)	$	24.4		$	33.8		$	4.9		$	24.4		$	1.7
Expense (income) reclassified out of AOCI into income was as follows:
Year Ended December 31,	2016						2015						2014
	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				$	(27.9	)				$	(.1	)
Cost of sales and revenues					.6						3.4					$	.3
Interest and other expense, net					1.3						(4.1	)					(2.1	)
Financial Services:
Interest and other borrowing expenses	$	36.8					$	(28.5	)				$	(21.7	)
	$	36.8		$	(26.0	)	$	(28.5	)	$	(.8	)	$	(21.7	)	$	(1.8	)