Derivatives (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

We recorded the following amounts related to our cash flow hedges in AOCI (in millions):



	As of December 31,
	2016			2015
Unrealized (gains) losses on unsettled contracts	$	(8.9	)	$	13.2
Income tax expense (benefit)	3.3			(4.8		)
(Gains) losses included in AOCI, net of tax ⁽¹⁾	$	(5.6	)	$	8.4

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $4.5 million of derivative gains into earnings within the next 12 months.

Outstanding foreign currency forward contracts not designated as cash flow hedges

We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions of pounds):



	As of December 31,
Notional Amounts	2016	2015
Copper	30.4	34.7

We had the following outstanding foreign exchange forward contracts designated as cash flow hedges (in millions):



	As of December 31,
Notional Amounts (in local currency):	2016	2015
Mexican Peso	310.1	201.4
Canadian Dollar	24.9	—

Derivatives not Designated as Cash Flow Hedges

For commodity derivatives not designated as cash flow hedges, we follow the same hedging strategy as derivatives designated as cash flow hedges, except that we elect not to designate them as cash flow hedges at the inception of the arrangement. We had

the following outstanding commodity futures contracts not designated as cash flow hedges (in millions of pounds):



	As of December 31,
	2016	2015
Copper	2.4	3.3
Aluminum	2.6	3.2

We had the following outstanding foreign currency forward contracts not designated as cash flow hedges (in millions):



	As of December 31,
Notional amounts (in local currency):	2016	2015
Chinese Yuan	10.5	—
Mexican Peso	64.5	53.0
Euro	46.9	3.2
British Pound	1.3	—
Indian Rupee	584.6	30.8
Polish Zloty	—	25.4

Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations

The following tables provide the locations and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Operations (in millions):



	Fair Values of Derivative Instruments as of December 31 ⁽¹⁾
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	2016		2015		2016		2015
Current Assets:
Other assets
Commodity futures contracts	$	8.7	$	—	$	0.7	$	—
Foreign currency forward contracts	0.5		—		0.2		0.2
Non-Current Assets:
Other assets, net
Commodity futures contracts	1.9		—		0.2		—
Foreign currency forward contracts	$	—	$	—	$	—	$	—
Total Assets	$	11.1	$	—	$	1.1	$	0.2
Current Liabilities:
Accrued expenses
Commodity futures contracts	$	—	$	12.5	$	—	$	1.5
Foreign currency forward contracts	0.8		0.4		3.2		—
Non-Current Liabilities:
Other liabilities
Commodity futures contracts	—		0.4		—		—
Foreign currency forward contracts	—		—		—		—
Total Liabilities	$	0.8	$	13.3	$	3.2	$	1.5

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 19 for more information on fair value measurements.

Effect of Derivative Instruments on Consolidated Statements of Operations



Derivatives in Cash Flow Hedging Relationships
	For the Years Ended December 31,
	2016			2015		2014
Amount of Loss Reclassified from AOCI into Income (Effective Portion):
Commodity futures contracts ⁽¹⁾	$	12.3		$	12.5	$	5.8
Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion):
Commodity futures contracts ⁽²⁾	$	(1.6	)	$	0.1	$	0.1



Derivatives Not Designated as Hedging Instruments
	For the Years Ended December 31,
	2016			2015		2014
Amount of (Gain) Loss Recognized in Income on Derivatives:
Commodity futures contracts ⁽²⁾	$	(0.9	)	$	2.5	$	1.2
Foreign currency forward contracts ⁽²⁾	4.3			0.3		(0.8		)
	$	3.4		$	2.8	$	0.4

⁽¹⁾ The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations.

⁽²⁾ The (gain) loss was recorded in Losses and other expenses, net in the accompanying Consolidated Statements of Operations.