DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

All of our designated derivatives were classified as cash flow hedges as of June 30, 2018 and December 31, 2017.

Interest Rate Swaps

During the three months ended July 1, 2017, we repaid $584.4 million of senior notes with an interest rate of 4.000% due 2023 and $309.5 million of senior notes with an interest rate of 5.300% due 2043 (refer to Note 9). As a result of these senior note repayments, the proportionate amount remaining in OCI related to the pre-issuance hedge was reclassified to earnings. Accordingly, we recorded a loss of $5.9 million in Other expense, net, during the three months ended July 1, 2017 for the amount remaining in OCI.

Foreign Currency Forward Contracts

The total notional amount for our foreign currency forward contracts was $594.2 million and $592.3 million as of June 30, 2018 and December 31, 2017, respectively.

Effects of Derivatives on the Financial Statements

The below tables indicate the effects of all derivative instruments on the Condensed Consolidated Financial Statements. All amounts exclude income tax effects and are presented in millions.

The balance sheet location and gross fair value of our outstanding derivative instruments were as follows:



	Asset Derivatives
	Balance Sheet Location	Fair Value
		June 30, 2018		December 31, 2017
Designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	2.1	$	4.1
Non-designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	0.6	$	2.2



	Liability Derivatives
	Balance Sheet Location	Fair Value
		June 30, 2018		December 31, 2017
Designated derivatives:
Foreign currency forward contracts	Accrued liabilities	$	5.0	$	1.4
Non-designated derivatives:
Foreign currency forward contracts	Accrued liabilities	$	4.1	$	2.4

The gains (losses) recorded in OCI for the effective portion of our designated cash flow hedges were as follows:



	Amount of Gain/(Loss) Recorded in OCI (Effective Portion)
	Three Months Ended					Six Months Ended
Designated Cash Flow Hedges	June 30, 2018			July 1, 2017		June 30, 2018			July 1, 2017
Foreign currency forward contracts	$	(4.3	)	$	2.7	$	(4.3	)	$	5.2

The gains (losses) reclassified from Accumulated other comprehensive income ("AOCI") into earnings for the effective portion of our designated cash flow hedges were as follows:



		Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion)
		Three Months Ended						Six Months Ended
Designated Cash Flow Hedges	Income Statement Location	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Interest rate swap agreements	Interest expense, net	$	(0.4	)	$	(0.6	)	$	(0.9	)	$	(1.3	)
	Other expense, net	—			(5.9		)	—			(5.9		)
Foreign currency forward contracts	Net sales	—			0.6			—			0.9
	Cost of sales	1.6			0.9			3.9			1.6
	Interest expense, net	(1.1		)	(0.5		)	(2.0		)	(1.1		)
	Other expense, net	(0.1		)	—			(0.5		)	(0.5		)
Total		$	—		$	(5.5	)	$	0.5		$	(6.3	)

The net of tax amount expected to be reclassified out of AOCI into earnings during the next 12 months is a $5.2 million loss.

The gains (losses) recognized in earnings for the ineffective portion of our designated cash flow hedges were as follows:



		Amount of Gain/(Loss) Recognized in Earnings (Ineffective Portion)
		Three Months Ended		Six Months Ended
Designated Cash Flow Hedges	Income Statement Location	July 1, 2017		July 1, 2017
Foreign currency forward contracts	Other expense, net	$	0.1	$	1.0

The effects of our non-designated derivatives on the Condensed Consolidated Statements of Operations were as follows:



		Amount of Gain/(Loss) Recognized against Earnings
		Three Months Ended					Six Months Ended
Non-Designated Derivatives	Income Statement Location	June 30, 2018		July 1, 2017			June 30, 2018			July 1, 2017
Foreign currency forward contracts	Other expense, net	$	11.8	$	(5.0	)	$	8.6		$	(13.9	)
	Interest expense, net	0.2		(0.7		)	(0.7		)	(1.1		)
Total		$	12.0	$	(5.7	)	$	7.9		$	(15.0	)