DERIVATIVES AND HEDGING TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2017

DERIVATIVES AND HEDGING TRANSACTIONS

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

	Asset Derivatives				Liability Derivatives
	June 30		December 31		June 30		December 31
(millions)	2017		2016		2017		2016
Derivatives designated as hedging instruments
Foreign currency forward contracts		$ 21.8		$ 73.4		$ 16.8		$ 19.8
Interest rate swap agreements		-		-		3.9		3.5
Derivatives not designated as hedging instruments
Foreign currency forward contracts		47.0		20.0		66.5		26.9
Gross value of derivatives		68.8		93.4		87.2		50.2
Gross amounts offset in the Consolidated Balance Sheet		(23.3)		(25.7)		(23.3)		(25.7)
Net value of derivatives		$ 45.5		$ 67.7		$ 63.9		$ 24.5

Summary of notional values of outstanding derivatives

	Notional Values
	June 30		December 31
(millions)	2017		2016
Foreign currency forward contracts (a)		$ 5,288		$ 4,317
Interest rate agreements		$ 1,450		$ 1,450

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

		Second Quarter Ended				Six Months Ended
		June 30				June 30
(millions)		2017		2016		2017		2016
Unrealized gain (loss) recognized into AOCI
Foreign currency forward contracts	AOCI (equity)		$ (28.9)		$ (23.8)		$ (44.3)		$ (27.5)
Interest rate swap agreements	AOCI (equity)		-		(4.6)		-		(12.9)
	Total		(28.9)		(28.4)		(44.3)		(40.4)
Gain (loss) recognized in income
Foreign currency forward contracts	Cost of sales		(8.3)		8.9		(10.8)		21.6
	SG&A		(23.3)		(9.0)		(22.7)		(19.6)
	Interest expense, net		1.5		1.4		2.9		2.9
	Subtotal		(30.1)		1.3		(30.6)		4.9
Interest rate swap agreements	Interest expense, net		(1.8)		(1.6)		(3.6)		(3.2)
	Total		$ (31.9)		$ (0.3)		$ (34.2)		$ 1.7

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

		Second Quarter Ended				Six Months Ended
		June 30				June 30
(millions)		2017		2016		2017		2016
Gain (loss) on derivative recognized income
Interest rate swap	Interestexpense, net		$ 1.3		$ 3.0		$ (0.4)		$ 13.7
Gain (loss) on hedged item recognized income
Interest rate swap	Interest expense, net		$ (1.3)		$ (3.0)		$ 0.4		$ (13.7)

Revaluation gains and losses on euronotes and forward contracts

	Second Quarter Ended				Six Months Ended
	June 30				June 30
(millions)	2017		2016		2017		2016
Revaluation gains (losses), net of tax		$ (55.6)		$ (12.9)		$ (52.8)		$ (27.9)

Impact on earnings from derivative contracts not designated as hedging instruments

		Second Quarter Ended				Six Months Ended
		June 30				June 30
(millions)		2017		2016		2017		2016
Gain (loss) recognized in income
Foreign currency forward contracts	SG&A		$ (50.8)		$ 17.3		$ (43.8)		$ (15.3)
	Interestexpense, net		2.4		(2.6)		2.5		(3.1)
	Total		$ (48.4)		$ 14.7		$ (41.3)		$ (18.4)