DERIVATIVES AND HEDGING TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2018

DERIVATIVES AND HEDGING TRANSACTIONS

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)	2018		2017		2018		2017
Derivatives designated as hedging instruments
Foreign currency forward contracts		$19.8		$19.6		$36.8		$125.2
Interest rate swap agreements		-		-		1.9		4.2
Derivatives not designated as hedging instruments
Foreign currency forward contracts		21.0		26.2		16.8		27.9
Gross value of derivatives		40.8		45.8		55.5		157.3
Gross amounts offset in the Consolidated Balance Sheet		(7.6)		(17.0)		(7.6)		(17.0)
Net value of derivatives		$33.2		$28.8		$47.9		$140.3

Summary of notional values of outstanding derivatives

	Notional Values
	September 30		December 31
(millions)	2018		2017
Foreign currency forward contracts		$ 4,311		$ 5,593
Interest rate agreements		650		950

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

		Third Quarter Ended				Nine Months Ended
		September 30				September 30
(millions)		2018		2017		2018		2017
Unrealized gain (loss) recognized into AOCI
Foreign currency forward contracts	AOCI (equity)		$32.9		$(118.8)		$85.6		$(192.4)
Interest rate swap agreements	AOCI (equity)		-		-		-		-
	Total		$32.9		$(118.8)		$85.6		$(192.4)
Gain (loss) recognized in income
Foreign currency forward contracts	Cost of sales		$(2.0)		$(0.9)		$(8.7)		$(11.7)
	SG&A		12.4		(99.5)		39.3		(157.3)
	Interest expense, net		10.4		7.4		27.2		16.1
	Subtotal		20.8		(93.0)		57.8		(152.9)
Interest rate swap agreements	Interest expense, net		(1.3)		(1.8)		(4.7)		(5.4)
	Total		$19.5		$(94.8)		$53.1		$(158.3)

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

		Third Quarter Ended				Nine Months Ended
		September 30				September 30
(millions)		2018		2017		2018		2017
Gain (loss) on derivative recognized income
Interest rate swap	Interestexpense, net		$2.0		$0.3		$2.3		$(0.1)
Gain (loss) on hedged item recognized income
Interest rate swap	Interest expense, net		$(2.0)		$(0.3)		$(2.3)		$0.1

Revaluation gains and losses on euronotes and forward contracts

	Third Quarter Ended				Nine Months Ended
	September 30				September 30
(millions)	2018		2017		2018		2017
Revaluation gains (losses), net of tax		$9.1		$(50.9)		$31.9		$(103.7)

Impact on earnings from derivative contracts not designated as hedging instruments

		Third Quarter Ended				Nine Months Ended
		September 30				September 30
(millions)		2018		2017		2018		2017
Gain (loss) recognized in income
Foreign currency forward contracts	SG&A		$7.1		$(29.4)		$5.0		$(38.1)
	Interestexpense, net		0.8		(0.2)		4.5		(3.5)
	Total		$7.9		$(29.6)		$9.5		$(41.6)