Derivative Financial Instruments (Tables)

9 Months Ended

Jun. 30, 2016

Derivative [Line Items]

Schedule of Derivative Instruments [Table Text Block]

The swaps effectively fix the floating price on a specified quantity of raw materials through a specified date. At June 30, 2016, Spectrum Brands had a series of zinc and brass swap contracts outstanding through September 2017. The derivative net gains estimated to be reclassified from AOCI into earnings over the next 12 months is $0.3, net of tax. Spectrum Brands had the following commodity swap contracts outstanding as of June 30, 2016 and September 30, 2015:

	June 30, 2016			September 30, 2015
	Notional	Contract Value		Notional	Contract Value
Zinc swap contracts (tons)	7.2	$	13.6	10.8	$	22.2
Brass swap contracts (tons)	1.0	4.3		1.8	8.5

F

had the following commodity swaps outstanding as of June 30, 2016 and September 30, 2015:

	June 30, 2016			September 30, 2015
	Notional	Contract Value		Notional	Contract Value
Silver (troy oz.)	5	$	0.1	25	$	0.4

Spectrum Brands’ interest rate swap derivative financial instruments at June 30, 2016 and September 30, 2015 were as follows:

	June 30, 2016			September 30, 2015
	Notional		Remaining Years	Notional		Remaining Years
Interest rate swaps - fixed	$	300.0	0.8	$	300.0	1.5

Fair Value of Outstanding Derivative Contracts in Condensed Consolidated Balance Sheets

The fair value of outstanding derivatives recorded in the accompanying Condensed Consolidated Balance Sheets were as follows:

Asset Derivatives	Classification	June 30, 2016		September 30, 2015
				(As Adjusted)
Derivatives designated as hedging instruments:
Foreign exchange contracts	Receivables, net	$	6.6	$	5.2
Commodity swaps	Receivables, net	1.3		—
Commodity swaps	Other assets	0.3		—
Foreign exchange contracts	Other assets	0.6		0.4
Total asset derivatives designated as hedging instruments		8.8		5.6
Derivatives not designated as hedging instruments:
Call options	Funds withheld receivables	9.4		5.4
Call options	Other assets	4.5		1.0
Commodity contracts	Receivables, net	0.3		7.9
Foreign exchange contracts	Receivables, net	0.4		0.4
Total asset derivatives		$	23.4	$	20.3

Liability Derivatives	Classification	June 30, 2016		September 30, 2015
				(As Adjusted)
Derivatives designated as hedging instruments:
Interest rate swaps	Accounts payable and other current liabilities	$	1.3	$	1.4
Interest rate swaps	Other liabilities	0.5		1.2
Commodity swaps	Accounts payable and other current liabilities	0.4		4.7
Commodity swaps	Other liabilities	—		0.8
Foreign exchange contracts	Accounts payable and other current liabilities	1.7		1.5
Foreign exchange contracts	Other liabilities	0.1		—
Total liability derivatives designated as hedging instruments		4.0		9.6
Derivatives not designated as hedging instruments:
Embedded derivatives in Front Street's assumed FIA business	Insurance reserves	133.5		142.3
Foreign exchange	Accounts payable and other current liabilities	0.6		0.1
Commodity contracts	Accounts payable and other current liabilities	1.6		0.1
Total liability derivatives		$	139.7	$	152.1

Summary of Gain (Loss) Recognized in Income on Derivatives

		Three months ended June 30,						Nine months ended June 30,
Classification	Derivatives Not Designated as Hedging Instruments	2016			2015			2016		2015
Revenues:
Net investment gains (losses)	Call options	$	0.2		$	(0.3	)	$	0.7	$	1.9
Other income and expense:
Benefits and other changes in policy reserves	Embedded derivatives in Front Street's assumed FIA business	$	3.0		$	6.9		$	8.8	$	1.8
Other (expense) income, net	Oil and natural gas commodity contracts	(2.2		)	(2.7		)	0.3		21.3
	Foreign exchange contracts	0.8			5.0			1.6		(2.4		)

Volumes and Fair Value of Oil and Natural Gas Derivative Financial Instruments

The following table presents Compass’ volumes and fair value of the oil and natural gas Derivative Financial Instruments as of June 30, 2016 (presented on a calendar-year basis): 

	Volume Mmbtus/Mbbls	Weighted average strike price per Mmbtu/Bbl		Fair Value at June 30, 2016
Natural gas:
Two-way collars:
June - December 2016	1,840			$	(0.5	)
Short call		$	2.77
Long put		2.15
June - October 2016	1,230			(0.5		)
Short call		2.48
Long put		2.15
November 2016 - March 2017	2,265			(0.6		)
Short call		3.36
Long put		2.70
January 2017 - March 2017	450			—
Short call		3.80
Long put		3.05
Swaps:
January 2017 - March 2017	450			—
Short call		3.35
Total natural gas	6,235			(1.6		)
Oil:
Three-way collars:
July - December 2016	18			—
Short call		$	54.00
Long put		40.00
May - December 2016	92			0.3
Short call		76.00
Long put		56.00
Short put		42.00
Total oil	110			0.3
Total oil and natural gas Derivative Financial Instruments				$	(1.3	)

Impact of effective and ineffective portions of cash flow hedges and gain (loss) realized in statement of operations [Table Text Block]

The following summarizes the impact of derivative instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2016 and 2015:

		Three months ended June 30,
		2016								2015
		Effective portion						Ineffective portion		Effective portion						Ineffective portion
	Classification	Gain (Loss) in AOCI			Gain (Loss) reclassified to Earnings			Gain (Loss)		Gain (Loss) in AOCI			Gain (Loss) reclassified to Earnings			Gain (Loss)
Interest rate swaps	Interest expense	$	(0.2	)	$	(0.4	)	$	—	$	(0.4	)	$	(0.5	)	$	—
Commodity swaps	Cost of consumer products and other goods sold	2.1			(0.8		)	0.1		(0.7		)	—			—
Foreign exchange contracts	Net consumer and other product sales	(0.3		)	—			—		0.1			—			—
Foreign exchange contracts	Cost of consumer products and other goods sold	8.0			0.1			—		(6.8		)	8.6			—
		$	9.6		$	(1.1	)	$	0.1	$	(7.8	)	$	8.1		$	—

		Nine months ended June 30,
		2016								2015
		Effective portion						Ineffective portion		Effective portion						Ineffective portion
	Classification	Gain (Loss) in AOCI			Gain (Loss) reclassified to Earnings			Gain (Loss)		Gain (Loss) in AOCI			Gain (Loss) reclassified to Earnings			Gain (Loss)
Interest rate swaps	Interest expense	$	(0.5	)	$	(1.4	)	$	—	$	(2.4	)	$	(1.4	)	$	—
Commodity swaps	Cost of consumer products and other goods sold	2.9			(3.8		)	0.1		(2.4		)	0.3			—
Foreign exchange contracts	Net consumer and other product sales	(0.4		)	—			—		0.1			—			—
Foreign exchange contracts	Cost of consumer products and other goods sold	6.8			5.0			—		14.0			21.0			—
		$	8.8		$	(0.2	)	$	0.1	$	9.3		$	19.9		$	—