Derivatives (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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



	As of September 30, 2018			As of December 31, 2017
Unrealized losses (gains) on unsettled contracts	$	4.9		$	(11.3	)
Income tax (benefit) expense	(1.1		)	3.9
Losses (Gains) included in AOCL, net of tax ⁽¹⁾	$	3.8		$	(7.4	)

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $2.9 million of derivative losses into earnings within the next 12 months.

Outstanding contracts designated and not designated as cash flow hedges

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



	As of September 30, 2018	As of December 31, 2017
Copper	0.8	1.8
Aluminum	1.0	1.8

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



	As of September 30, 2018	As of December 31, 2017
Notional Amounts (in local currency):
Chinese Yuan	—	73.8
Mexican Peso	68.0	136.6
Euro	28.8	64.4
Canadian Dollar	23.0	27.3
British Pound	8.3	4.5
Singapore Dollar	—	7.0
Australian Dollar	—	107.0
New Zealand Dollar	—	5.0
Indian Rupee	—	39.8

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



	As of September 30, 2018	As of December 31, 2017
Copper	13.7	20.6
Aluminum	29.3	—

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



	As of September 30, 2018	As of December 31, 2017
Notional Amounts (in local currency):
Mexican Peso	49.2	207.3
Canadian Dollar	12.6	68.6

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 ⁽¹⁾
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	As of September 30, 2018		As of December 31, 2017		As of September 30, 2018		As of December 31, 2017
Current Assets:
Other Assets
Commodity futures contracts	$	—	$	11.0	$	—	$	1.2
Foreign currency forward contracts	0.5		0.1		—		0.9
Non-Current Assets:
Other Assets, net
Commodity futures contracts	—		0.6		—		0.1
Total Assets	$	0.5	$	11.7	$	—	$	2.2
Current Liabilities:
Accrued Expenses
Commodity futures contracts	$	5.2	$	—	$	0.3	$	—
Foreign currency forward contracts	—		0.3		0.1		1.1
Non-Current Liabilities:
Other Liabilities
Commodity futures contracts	0.3		—		—		—
Total Liabilities	$	5.5	$	0.3	$	0.4	$	1.1

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 17 for more information.

Effect of derivative instruments on Consolidated Statements of Operations



Derivatives Designated as Cash Flow Hedges	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018			2017			2018			2017
Amount of Gain reclassified from AOCL into Income (effective portion) ⁽¹⁾	$	(0.3	)	$	(3.5	)	$	(7.3	)	$	(9.4	)
Amount of (Gains)/Loss recognized in Net income (ineffective portion) ⁽²⁾⁽³⁾	—			(0.1		)	$	—		1.1



Derivatives Not Designated as Hedging Instruments	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2018		2017			2018			2017
Amount of Loss/(Gain) Recognized in Net Income:
Commodity futures contracts ⁽²⁾	$	0.3	$	(0.2	)	$	0.9		$	(1.3	)
Foreign currency forward contracts ⁽²⁾	—		(0.4		)	(0.3		)	(4.3		)
	$	0.3	$	(0.6	)	$	0.6		$	(5.6	)

⁽¹⁾ The gain 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.