DERIVATIVES AND HEDGING TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2016

DERIVATIVES AND HEDGING TRANSACTIONS

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

	Asset Derivatives				Liability Derivatives
(millions)	June 30		December 31		June 30		December 31
	2016		2015		2016		2015
Derivatives designated as hedging instruments:
Foreign currency forward contracts		$ 36.4		$ 70.2		$ 19.1		$ 3.2
Interest rate swap contracts		11.8		-		13.0		5.4
Derivatives not designated as hedging instruments:
Foreign currency forward contracts		14.8		41.0		25.7		32.7
Gross value of derivatives		63.0		111.2		57.8		41.3
Gross amounts offset in the Consolidated Balance Sheet		(24.4)		(9.8)		(24.4)		(9.8)
Net value of derivatives		$ 38.6		$ 101.4		$ 33.4		$ 31.5

Summary of notional values of outstanding derivatives

	Notional Values
	June 30		December 31
(millions)	2016		2015
Foreign currency forward contracts		$ 4,100		$ 4,000
Interest rate agreements		$ 2,075		$ 1,675
Net investment hedge contracts (a)		€ 65		€ 25

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

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

		Second Quarter Ended				Six Months Ended
		June 30				June 30
(millions)		2016		2015		2016		2015
Unrealized gain (loss) recognized into AOCI
Foreign currency forward contracts	AOCI (equity)		$ (23.8)		$ (5.4)		$ (27.5)		$ 19.9
Interest rate swap contracts	AOCI (equity)		(4.6)		7.9		(12.9)		(6.5)
	Total		$ (28.4)		$ 2.5		$ (40.4)		$ 13.4
		Second Quarter Ended				Six Months Ended
(millions)		June 30				June 30
Gain (loss) recognized in income		2016		2015		2016		2015
Foreign currency forward contracts	Cost of sales		$ 8.9		$ 5.1		$ 21.6		$ 9.9
	SG&A		(9.0)		0.4		(19.6)		0.9
	Interest expense, net		1.4		-		2.9		-
	Subtotal		1.3		5.5		4.9		10.8
Interest rate swap contracts	Interest expense, net		(1.6)		(1.4)		(3.2)		(2.6)
	Total		$ (0.3)		$ 4.1		$ 1.7		$ 8.2

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

		Second Quarter Ended				Six Months Ended
		June 30				June 30
(millions)		2016		2015		2016		2015
Gain on derivative recognized income
Interest rate swap	Interestexpense, net		$ 3.0		$ 0.9		$ 13.7		$ 1.9
Loss on hedged item recognized income
Interest rate swap	Interest expense, net		$ (3.0)		$ (0.9)		$ (13.7)		$ (1.9)

Revaluation gains and losses on euronotes and forward contracts

	Second Quarter Ended				Six Months Ended
	June 30				June 30
(millions)	2016		2015		2016		2015
Revaluation gains (losses), net of tax		$ (12.9)		$ 21.8		$ (27.9)		$ 78.8

Impact on earnings from derivative contracts not designated as hedging instruments

		Second Quarter Ended				Six Months Ended
		June 30				June 30
(millions)		2016		2015		2016		2015
Gain (loss) recognized in income
Foreign currency forward contracts	SG&A		$ 17.3		$ (5.5)		$ (15.3)		$ (0.7)
	Interestexpense, net		(2.6)		(5.7)		(3.1)		(10.6)
	Total		$ 14.7		$ (11.2)		$ (18.4)		$ (11.3)