Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

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,	2017						2016
	ASSETS			LIABILITIES			ASSETS			LIABILITIES
Derivatives designated under hedge accounting:
Interest-rate contracts:
Financial Services:
Other assets	$	53.3					$	109.7
Deferred taxes and other liabilities				$	98.3					$	46.3
Foreign-exchange contracts:
Truck, Parts and Other:
Other current assets		3.8						3.9
Accounts payable, accrued expenses and other					1.9						1.9
	$	57.1		$	100.2		$	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	$	.6					$	.8
Accounts payable, accrued expenses and other				$	.6						.3
Financial Services:
Other assets		.1						4.0
Deferred taxes and other liabilities					2.2						.7
	$	.7		$	2.8		$	4.8		$	1.1
Gross amounts recognized in Balance Sheet	$	57.8		$	103.0		$	118.4		$	49.3
Less amounts not offset in financial instruments:
Truck, Parts and Other:
Foreign-exchange contracts		(.4	)		(.4	)		(1.0	)		(1.0	)
Financial Services:
Interest-rate contracts		(8.7	)		(8.7	)		(15.4	)		(15.4	)
Foreign-exchange contracts								(.1	)		(.1	)
Pro forma net amount	$	48.7		$	93.9		$	101.9		$	32.8

Foreign Currency And Interest Rate Contract

Gains/Losses of Derivative Financial Instruments

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

Year Ended December 31,	2017					2016					2015
	INTEREST-			FOREIGN-		INTEREST-		FOREIGN-			INTEREST-	FOREIGN-
	RATE			EXCHANGE		RATE		EXCHANGE			RATE	EXCHANGE
	CONTRACTS			CONTRACTS		CONTRACTS		CONTRACTS			CONTRACTS	CONTRACTS
Truck, Parts and Other:
Net sales and revenues								$	(.4	)
Cost of sales and revenues				$	.3				.4			$	(.7	)
Interest and other expense, net					2.1				14.9				3.0
Financial Services:
Interest and other borrowing expenses	$	(.1	)		49.1	$	.1		(28.4	)			(7.6	)
Selling, general and administrative					.5				1.8				(2.3	)
	$	(.1	)	$	52.0	$	.1	$	(11.7	)		$	(7.6	)

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,		2017			2016			2015
Interest-rate swaps	$	2.3		$	5.5		$	(.9	)
Term notes		(1.5	)		(6.4	)		.2

Cash Flow Hedging

Gains/Losses of Derivative Financial Instruments

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

Year Ended December 31,	2017						2016					2015
	INTEREST-			FOREIGN-			INTEREST-			FOREIGN-		INTEREST-		FOREIGN-
	RATE			EXCHANGE			RATE			EXCHANGE		RATE		EXCHANGE
	CONTRACTS			CONTRACTS			CONTRACTS			CONTRACTS		CONTRACTS		CONTRACTS
(Loss) gain recognized in OCI:
Truck, Parts and Other				$	(17.4	)				$	24.4			$	4.9
Financial Services	$	(108.1	)				$	(30.9	)			$	33.8
	$	(108.1	)	$	(17.4	)	$	(30.9	)	$	24.4	$	33.8	$	4.9

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

Year Ended December 31,	2017				2016					2015
	INTEREST-		FOREIGN-		INTEREST-		FOREIGN-			INTEREST-			FOREIGN-
	RATE		EXCHANGE		RATE		EXCHANGE			RATE			EXCHANGE
	CONTRACTS		CONTRACTS		CONTRACTS		CONTRACTS			CONTRACTS			CONTRACTS
Truck, Parts and Other:
Net sales and revenues			$	12.1			$	(27.9	)				$	(.1	)
Cost of sales and revenues				3.9				.6						3.4
Interest and other expense, net				1.8				1.3						(4.1	)
Financial Services:
Interest and other borrowing expenses	$	115.6			$	36.8				$	(28.5	)
	$	115.6	$	17.8	$	36.8	$	(26.0	)	$	(28.5	)	$	(.8	)