8. Accumulated Other Comprehensive Income

AOCI refers to certain gains and losses that under GAAP are included in comprehensive income but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Amounts in AOCI may be reclassified to net earnings upon the occurrence of certain events.

Our AOCI is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions on our defined benefit plans. Foreign currency translation adjustments are reclassified to net earnings upon sale or upon a complete or substantially complete liquidation of an investment in a foreign entity. Unrealized gains and losses on cash flow hedges are reclassified to net earnings when the hedged item affects net earnings. Amounts related to defined benefit plans that are in AOCI are reclassified over the service periods of employees in the plan.

The following table shows the changes in the components of AOCI, net of tax (in millions):

	Foreign			Cash			Defined
	Currency			Flow			Benefit			Total
	Translation			Hedges			Plan Items			AOCI
Balance at December 31, 2017	$	121.5		$	(66.5	)	$	(138.2	)	$	(83.2	)
AOCI before reclassifications		(83.0	)		25.2			(3.8	)		(61.6	)
Reclassifications to retained earnings (Note 2)		(17.4	)		(4.4	)		(21.1	)		(42.9	)
Reclassifications to statement of earnings		-			18.9			5.8			24.7
Balance at June 30, 2018	$	21.1		$	(26.8	)	$	(157.3	)	$	(163.0	)

The following table shows the reclassification adjustments from AOCI (in millions):

	Amount of Gain (Loss)
	Reclassified from AOCI
	Three Months Ended						Six Months Ended
	June 30,						June 30,						Location on
Component of AOCI	2018			2017			2018			2017			Statements of Earnings
Cash flow hedges
Foreign exchange forward contracts	$	(10.5	)	$	5.9		$	(21.6	)	$	17.0		Cost of products sold
Forward starting interest rate swaps		(0.2	)		(0.2	)		(0.3	)		(0.3	)	Interest expense
		(10.7	)		5.7			(21.9	)		16.7		Total before tax
		(1.5	)		1.2			(3.0	)		3.2		Provision for income taxes
	$	(9.2	)	$	4.5		$	(18.9	)	$	13.5		Net of tax
Defined benefit plans
Prior service cost	$	2.5		$	2.5		$	5.0		$	5.1		Other expense, net
Unrecognized actuarial (loss)		(6.7	)		(5.2	)		(12.8	)		(10.8	)	Other expense, net
		(4.2	)		(2.7	)		(7.8	)		(5.7	)	Total before tax
		(1.2	)		(1.1	)		(2.0	)		(2.3	)	Benefit for income taxes
	$	(3.0	)	$	(1.6	)	$	(5.8	)	$	(3.4	)	Net of tax
Total reclassifications	$	(12.2	)	$	2.9		$	(24.7	)	$	10.1		Net of tax

The following table shows the tax effects on each component of AOCI recognized in our condensed consolidated statements of comprehensive income (in millions):

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	Before Tax			Tax			Net of Tax			Before Tax			Tax			Net of Tax
Foreign currency cumulative translation adjustments	$	(192.0	)	$	(14.2	)	$	(177.8	)	$	(90.6	)	$	(7.6	)	$	(83.0	)
Unrealized cash flow hedge (losses)		62.7			11.1			51.6			29.6			4.4			25.2
Reclassification adjustments on cash flow hedges		10.7			1.5			9.2			21.9			3.0			18.9
Adjustments to prior service cost and unrecognized actuarial assumptions		4.1			(1.2	)		5.3			-			(2.0	)		2.0
Total Other Comprehensive Loss	$	(114.5	)	$	(2.8	)	$	(111.7	)	$	(39.1	)	$	(2.2	)	$	(36.9	)

	Three Months Ended June 30, 2017									Six Months Ended June 30, 2017
	Before Tax			Tax			Net of Tax			Before Tax			Tax			Net of Tax
Foreign currency cumulative translation adjustments	$	215.3		$	26.1		$	189.2		$	269.7		$	31.5		$	238.2
Unrealized cash flow hedge (losses)		(26.5	)		(1.7	)		(24.8	)		(63.1	)		(12.0	)		(51.1	)
Reclassification adjustments on cash flow hedges		(5.7	)		(1.2	)		(4.5	)		(16.7	)		(3.2	)		(13.5	)
Adjustments to prior service cost and unrecognized actuarial assumptions		0.2			0.7			(0.5	)		(3.5	)		0.5			(4.0	)
Total Other Comprehensive Income	$	183.3		$	23.9		$	159.4		$	186.4		$	16.8		$	169.6