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Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments and hedging activities DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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

Interest Rate Swaps and Treasury Locks

During the year ended December 31, 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 10). As a result of the senior note repayments on June 15, 2017, 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 for the amount remaining in OCI.

During the six months ended December 31, 2015, we entered into a forward interest rate swap to hedge against changes in the benchmark interest rate between the date the interest rate swap was entered into and the date of expected future debt issuance. The interest rate swap was designated as a cash flow hedge and had a notional amount totaling $200.0 million. The interest rate swap was settled upon the issuance of an aggregate $1.2 billion principal amount of senior notes on March 7, 2016 for a cumulative after-tax loss of $7.0 million in OCI during the three months ended April 2, 2016.

Foreign Currency Derivatives

The total notional amount for our foreign currency forward contracts was $686.6 million and $592.3 million as of December 31, 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 Consolidated Financial Statements. All amounts exclude income tax effects.

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

 
 
 
Asset Derivatives
 
 
 
Fair Value
 
 
 
Year Ended
 
Balance Sheet Location
 
December 31,
2018
 
December 31,
2017
Designated derivatives:
 
 
 
 
 
Foreign currency forward contracts
Prepaid expenses and other current assets
 
$
2.0

 
$
4.1

Non-designated derivatives:
 
 
 
 
 
Foreign currency forward contracts
Prepaid expenses and other current assets
 
$
1.8

 
$
2.2

 
 
 
Liability Derivatives
 
 
 
Fair Value
 
 
 
Year Ended
 
Balance Sheet Location
 
December 31,
2018
 
December 31,
2017
Designated derivatives:
 
 
 
 
 
Foreign currency forward contracts
Accrued liabilities
 
$
6.4

 
$
1.4

Non-designated derivatives:
 
 
 
 
 
Foreign currency forward contracts
Accrued liabilities
 
$
2.8

 
$
2.4


The gain (loss) recorded in OCI for the effective portion of our designated cash flow hedges were as follows (in millions):
 
 
Amount of Gain/(Loss) Recorded in OCI
(Effective Portion)
 
 
Year Ended
Designated Cash Flow Hedges
 
December 31,
2018
 
December 31,
2017
 
December 31,
2016
Interest rate swap agreements
 
$
—

 
$
—

 
$
(9.0
)
Foreign currency forward contracts
 
(9.1
)
 
9.4

 
2.1

 
 
$
(9.1
)
 
$
9.4

 
$
(6.9
)

The gain (loss) reclassified from AOCI into earnings for the effective portion of our designated cash flow hedges were as follows (in millions):
 
 
 
 
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion)
 
 
 
 
Year Ended
Designated Cash Flow Hedges
 
Income Statement
Location
 
December 31,
2018
 
December 31,
2017
 
December 31,
2016
Treasury locks
 
Interest expense, net
 
$
(0.1
)
 
$
(0.1
)
 
$
(0.1
)
Interest rate swap agreements
 
Interest expense, net
 
(1.8
)
 
(2.1
)
 
(2.3
)
 
 
Other (income) expense, net
 
—

 
(6.0
)
 
—

Foreign currency forward contracts
 
Net sales
 
0.5

 
1.5

 
1.3

 
 
Cost of sales
 
1.9

 
5.6

 
3.0

 
 
Interest expense, net
 
(4.8
)
 
(2.6
)
 
(1.6
)
 
 
Other (income) expense, net
 
2.1

 
(1.5
)
 
0.4

 
 
 
 
$
(2.2
)
 
$
(5.2
)
 
$
0.7



The net of tax amount expected to be reclassified out of AOCI into earnings during the next 12 months is a $10.7 million loss.

The gain (loss) recognized against earnings for the ineffective portion of our designated cash flow hedges were as follows (in millions):
 
 
 
 
Amount of Gain/(Loss) Recognized in Earnings
(Ineffective Portion)
 
 
 
 
Year Ended
Designated Cash Flow Hedges
 
Income Statement
Location
 
December 31,
2017
 
December 31,
2016
Interest rate swap agreements
 
Other (income) expense, net
 
$
—

 
$
(0.1
)
Foreign currency forward contracts
 
Net sales
 
0.2

 
(0.1
)
 
 
Cost of sales
 
0.1

 
(0.1
)
 
 
Other expense, net
 
1.0

 
0.6

Total
 
 
 
$
1.3

 
$
(0.3
)
    
The effects of our non-designated derivatives on the Consolidated Statements of Operations were as follows (in millions):
 
 
 
 
Amount of Gain/(Loss) Recognized in Income
 
 
 
 
Year Ended
Non-Designated Derivatives
 
Income Statement
Location
 
December 31,
2018
 
December 31,
2017
 
December 31,
2016
Foreign currency forward contracts
 
Other (income) expense, net
 
$
7.6

 
$
12.6

 
$
(2.4
)
 
 
Interest expense, net
 
(1.0
)
 
(5.3
)
 
(2.2
)
Total
 
 
 
$
6.6

 
$
7.3

 
$
(4.6
)