Derivatives and Hedging Transactions (Tables)

9 Months Ended

Sep. 30, 2015

Derivatives and Hedging Transactions

Impact on AOCI and earnings from derivative contracts qualified as cash flow hedges

		Third Quarter Ended						Nine Months Ended
		September 30						September 30
(millions)	Location	2015			2014			2015			2014
Unrealized gain (loss) recognized into AOCI (effective portion)
Foreign currency forward contracts	AOCI (equity)	$	19.0		$	5.5		$	38.9		$	2.8
Interest rate swap contracts	AOCI (equity)	7.7			0.5			1.2			0.5
		$	26.7		$	6.0		$	40.1		$	3.3
Gain (loss) reclassified from AOCI into income (effective portion)
Foreign currency forward contracts	Cost of sales	$	13.3		$	0.9		$	23.2		$	3.4
	SG&A	0.2			—			1.1			1.0
	Interest expense, net	1.4			—			1.4			—
		$	14.9		$	0.9		$	25.7		$	4.4
Interest rate swap contracts	Interest expense, net	(1.4		)	(1.0		)	(4.0		)	(3.0		)
		$	13.5		$	(0.1	)	$	21.7		$	1.4

Impact on earnings from derivative contracts that qualified as fair value hedges

		Third Quarter Ended						Nine Months Ended
		September 30						September 30
(millions)	Location	2015			2014			2015			2014
Gain (loss) on derivative recognized in income
Interest rate swaps	Interest expense, net	$	7.6		$	(3.4	)	$	9.5		$	(4.4	)
Gain (loss) on hedged item recognized in income
Interest rate swaps	Interest expense, net	$	(7.6	)	$	3.4		$	(9.5	)	$	4.4

Revaluation gains and losses on euronotes and forward contracts

	Third Quarter Ended					Nine Months Ended
	September 30					September 30
(millions)	2015			2014		2015		2014
Revaluation gain (loss), net of tax	$	(12.0	)	$	7.4	$	66.8	$	5.6

Impact on earnings from derivative contracts not designated as hedging instruments

		Third Quarter Ended							Nine Months Ended
		September 30							September 30
(millions)	Location		2015			2014			2015			2014
Gain (loss) recognized in income
Foreign currency forward contracts	SG&A		$	7.1		$	(0.6	)	$	6.4		$	6.2
	Interest expense, net		(0.3		)	(2.7		)	(10.9		)	(8.1		)
			$	6.8		$	(3.3	)	$	(4.5	)	$	(1.9	)

Net fair value of the company's outstanding derivative assets and liabilities

	Asset Derivatives						Liability Derivatives
	September 30			December 31			September 30			December 31
(millions)	2015			2014			2015			2014
Gross value of derivatives	$	97.8		$	75.5		$	42.6		$	52.1
Gross amounts offset in the Consolidated Balance Sheet	(13.7		)	(18.1		)	(13.7		)	(18.1		)
Net value of derivatives presented in the Consolidated Balance Sheet	$	84.1		$	57.4		$	28.9		$	34.0

Gross fair value of the company's outstanding derivative assets and liabilities

	Asset Derivatives				Liability Derivatives
	September 30		December 31		September 30		December 31
(millions)	2015		2014		2015		2014
Derivatives designated as hedging instruments
Foreign currency forward contracts	$	53.5	$	17.9	$	6.7	$	0.6
Interest rate swap contracts	7.4		—		5.7		24.2
Derivatives not designated as hedging instruments
Foreign currency forward contracts	36.9		57.6		30.2		27.3
Total	$	97.8	$	75.5	$	42.6	$	52.1

Summary of notional values of outstanding derivatives

	Notional Values
	September 30		December 31
(millions)	2015		2014
Foreign currency forward contracts	$	3,800	$	2,800
Interest rate swap agreements	$	1,675	$	725
	€	—	€	400
Net investment hedge contracts(a)	€	80	€	495

(a) The net investment hedge contracts exclude the company’s euro denominated debt