Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Contracts

As of March 31, 2020, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows:

(in millions)		Sell
Currency	Purchase	USD	Euro
USD	52.7	—	47.0
Yen	9,175.8	45.2	36.2
SGD	59.8	35.2	6.7

Effects of Derivative Instruments on Other Comprehensive Income ('OCI') and Earnings

The following table summarizes the effects of derivative instruments designated as fair value hedges on the condensed consolidated statements of income:

	Amount of Gain Recognized in Income
	Three Months Ended March 31,				Location on Statement of Income
($ in millions)	2020		2019
Fair Value Hedges:
Foreign currency hedge contracts	$	(2.0)	$	(1.9)	Other income
Total	$	(2.0)	$	(1.9)

We recognize in earnings the initial value of forward point components on a straight-line basis over the life of the fair value hedge. The amounts recognized in earnings, pre-tax, for forward point components for the three months ended March 31, 2020 and 2019 were $2.0 million and $1.9 million, respectively.

The following tables summarize the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on other comprehensive income (“OCI”) and earnings, net of tax:

	Amount of Gain (Loss) Recognized in OCI for the				Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for the				Location of (Gain) Loss Reclassified from Accumulated OCI into Income
	Three Months Ended March 31,				Three Months Ended March 31,
($ in millions)	2020		2019		2020		2019
Fair Value Hedges
Foreign currency hedge contracts	$	3.6	$	(0.1)	$	(1.3)	$	(3.2)	Other income
Total	$	3.6	$	(0.1)	$	(1.3)	$	(3.2)
Cash Flow Hedges:
Foreign currency hedge contracts	$	0.1	$	0.5	$	(0.2)	$	(0.2)	Net sales
Foreign currency hedge contracts	0.4		(0.1)		—		(0.1)		Cost of goods and services sold
Total	$	0.5	$	0.4	$	(0.2)	$	(0.3)
Net Investment Hedges:
Foreign currency-denominated debt	$	—	$	0.1	$	—	$	—	Other income
Cross-currency swap	(1.2)		—		—		—		Other income
Total	$	(1.2)	$	0.1	$	—	$	—

The following table summarizes the effects of derivative instruments designated as fair value, cash flow, and net investment hedges by line item in our condensed consolidated statements of income:

	Three Months Ended March 31,
($ in millions)	2020		2019
Net sales	$	(0.2)	$	(0.2)
Cost of goods and services sold	—		(0.1)
Other income	(1.3)		(3.2)

The following table summarizes the effects of derivative instruments not designated as hedges on the condensed consolidated statements of income:

	Amount of Loss Recognized in Income for the
	Three Months Ended March 31,				Location on Statement of Income
($ in millions)	2020		2019
Commodity call options	$	0.2	$	—	Cost of goods and services sold
Total	$	0.2	$	—