Derivatives

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

5. DERIVATIVES

Our business and financial results are affected by fluctuations in world financial markets, including interest rates and currency exchange rates.  Our hedging policy has been developed to manage these risks to an acceptable level based on management’s judgment of the appropriate trade-off between risk, opportunity and cost.  We do not hold financial instruments for trading or speculative purposes.

Currency forward contracts  From time to time, we use foreign currency forward contracts to reduce the effects of fluctuations in exchange rates, primarily relating to the Mexican Peso, Euro, Pound Sterling, Thai Baht, Swedish Krona and Polish Zloty.  As of September 30, 2015, we have currency forward contracts outstanding with a notional amount of $200.4 million that hedge our exposure to changes in foreign currency exchange rates for our payroll expenses through June 2018 and certain direct and indirect inventory and other working capital items through January 2016.  

The following table summarizes the reclassification of pre-tax derivative gains (losses) into net income from accumulated other comprehensive income (loss) for those derivative instruments designated as hedging instruments under ASC 815:

	Location of	Gain (Loss) Reclassified During										Loss Expected to
	Gain (Loss)	Three Months Ended					Nine Months Ended					be Reclassified
	Reclassified into	September 30,					September 30,					During the
	Net Income	2015			2014		2015			2014		Next 12 Months
		(in millions)
Currency forward contracts	Cost of Goods Sold	$	(3.1	)	$	0.5	$	(6.9	)	$	0.7	$	(9.5	)

See Note 10 - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) for amounts recognized in other comprehensive income (loss) during the three and nine months ended September 30, 2015 and September 30, 2014.

The following table summarizes the amount and location of losses recognized in the Condensed Consolidated Statement of Income for those derivative instruments not designated as hedging instruments under ASC 815:

	Location of	Loss Recognized During
	Loss	Three Months Ended						Nine Months Ended
	Recognized in	September 30,						September 30,
	Net Income	2015			2014			2015			2014
		(in millions)
Currency forward contracts	Cost of Goods Sold	$	(2.1	)	$	(0.3	)	$	(4.1	)	$	(0.3	)
Currency forward contracts	Other Income (Expense), Net	(1.1		)	—			(1.4		)	—