Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Foreign Currency Contracts

As of September 30, 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	74.7	—	64.8
Yen	9,876.6	55.9	32.5
SGD	57.9	33.3	7.2

Schedule of 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 Loss (Gain) Recognized in Income for the				Amount of Loss (Gain) Recognized in Income for the
	Three Months Ended September 30,				Nine Months Ended September 30,				Location on Statement of Income
($ in millions)	2020		2019		2020		2019
Fair Value Hedges:
Hedged item (intercompany loan)	$	9.3	$	(8.4)	$	25.1	$	(14.1)	Other expense (income)
Derivative designated as hedging instrument	$	(9.3)	$	8.4	$	(25.1)	$	14.1	Other expense (income)
Amount excluded from effectiveness testing	$	(1.9)	$	4.3	$	(5.9)	$	(5.0)	Other expense (income)
Total	$	(1.9)	$	4.3	$	(5.9)	$	(5.0)

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 (Loss) Gain 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 September 30,				Three Months Ended September 30,
($ in millions)	2020		2019		2020		2019
Fair Value Hedges
Foreign currency hedge contracts	$	(0.1)	$	(0.6)	$	(0.7)	$	2.9	Other expense (income)
Total	$	(0.1)	$	(0.6)	$	(0.7)	$	2.9
Cash Flow Hedges:
Foreign currency hedge contracts	$	(0.5)	$	0.7	$	0.2	$	(0.3)	Net sales
Foreign currency hedge contracts	—		0.6		0.1		(0.2)		Cost of goods and services sold
Forward treasury locks	—		—		0.1		0.1		Interest expense
Total	$	(0.5)	$	1.3	$	0.4	$	(0.4)
Net Investment Hedges:
Foreign currency-denominated debt	$	—	$	0.7	$	—	$	—	Other expense (income)
Cross-currency swap	(3.0)		—		—		—		Other expense (income)
Total	$	(3.0)	$	0.7	$	—	$	—

	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
	Nine Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2020		2019		2020		2019
Fair Value Hedges
Foreign currency hedge contracts	$	2.8	$	3.9	$	(3.3)	$	(3.3)	Other expense (income)
Total	$	2.8	$	3.9	$	(3.3)	$	(3.3)
Cash Flow Hedges:
Foreign currency hedge contracts	$	—	$	1.0	$	(0.3)	$	(0.7)	Net sales
Foreign currency hedge contracts	(0.3)		1.1		(0.1)		(0.5)		Cost of goods and services sold
Forward treasury locks	—		—		0.2		0.2		Interest expense
Total	$	(0.3)	$	2.1	$	(0.2)	$	(1.0)
Net Investment Hedges:
Foreign currency-denominated debt	$	—	$	0.5	$	—	$	—	Other (income)
Cross-currency swap	(2.0)		—		—		—		Other (income)
Total	$	(2.0)	$	0.5	$	—	$	—

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 September 30,				Nine Months Ended September 30,
($ in millions)	2020		2019		2020		2019
Net sales	$	0.2	$	(0.3)	$	(0.3)	$	(0.7)
Cost of goods and services sold	0.1		(0.2)		(0.1)		(0.5)
Interest expense	0.1		0.1		0.2		0.2
Other expense (income)	(0.7)		2.9		(3.3)		(3.3)

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				Amount of Loss Recognized in Income for the
	Three Months Ended September 30,				Nine Months Ended September 30,				Location on Statement of Income
($ in millions)	2020		2019		2020		2019
Commodity call options	$	0.1	$	0.1	$	0.3	$	0.3	Cost of goods and services sold
Total	$	0.1	$	0.1	$	0.3	$	0.3