FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2017

The following table summarizes the notional amounts of cash flow hedges by derivative instrument type at June 30, 2017 and the notional amounts expected to mature during the next 12 months, with a discussion of the various cash flow hedges by derivative instrument type following the table:



	Aggregate Notional Amount		Aggregate Notional Amount Maturing within 12 Months

(in millions)

Foreign exchange forward contracts	$	303.2	$	175.9
Interest rate swaps	111.6		—
Total derivative instruments designated as cash flow hedges	$	414.8	$	175.9

Schedule of Aggregate Notional Amounts of Economic Hedges Not Designated as Hedges

The following tables summarize the aggregate notional amounts of the Company’s economic hedges not designated as hedges by derivative instrument types at June 30, 2017 and the notional amounts expected to mature during the next 12 months:



	Aggregate Notional Amount		Aggregate Notional Amount Maturing within 12 Months

(in millions)

Foreign exchange forward contracts	$	340.7	$	340.7
Interest rate swaps	0.6		0.6
Total for instruments not designated as hedges	$	341.3	$	341.3

Derivative Instruments, Gain (Loss)

The following table summarizes the amounts of gains (losses) recorded on the Company’s Consolidated Statements of Operations related to the economic hedges not designated as hedging for the three and six months ended June 30, 2017 and 2016:



	Consolidated Statements of Operations Location	Gain (Loss) Recognized
		Three Months Ended
(in millions)		2017			2016

Foreign exchange forward contracts (a)	Other expense (income), net	$	(2.3	)	$	9.0
Total for instruments not designated as hedges		$	(2.3	)	$	9.0

(a) The gains and losses on these derivative transactions offset the gains and losses generated by the revaluation of the underlying non-functional currency balances which are recorded in Other expense (income), net on the Consolidated Statements of Operations.



	Consolidated Statements of Operations Location	Gain (Loss) Recognized
		Six Months Ended
(in millions)		2017			2016

Foreign exchange forward contracts (a)	Other expense (income), net	$	(5.1	)	$	(7.4	)
Total for instruments not designated as hedges		$	(5.1	)	$	(7.4	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables summarize the fair value and the location of the Company’s derivatives on the Consolidated Balance Sheets at June 30, 2017 and December 31, 2016:



	June 30, 2017
(in millions)	Prepaid Expenses and Other Current Assets, Net		Other Noncurrent Assets, Net		Accrued Liabilities		Other Noncurrent Liabilities
Designated as Hedges	Prepaid Expenses and Other Current Assets, Net		Other Noncurrent Assets, Net		Accrued Liabilities		Other Noncurrent Liabilities

Foreign exchange forward contracts	$	2.6	$	0.7	$	1.9	$	1.3
Interest rate swaps	—		—		0.2		0.2
Total	$	2.6	$	0.7	$	2.1	$	1.5

Not Designated as Hedges

Foreign exchange forward contracts	$	3.4	$	—	$	2.3	$	—
Total	$	3.4	$	—	$	2.3	$	—



	December 31, 2016
(in millions)	Prepaid Expenses and Other Current Assets, Net		Other Noncurrent Assets, Net		Accrued Liabilities		Other Noncurrent Liabilities
Designated as Hedges	Prepaid Expenses and Other Current Assets, Net		Other Noncurrent Assets, Net		Accrued Liabilities		Other Noncurrent Liabilities

Foreign exchange forward contracts	$	12.8	$	0.6	$	1.0	$	—
Interest rate swaps	—		—		0.2		0.3
Total	$	12.8	$	0.6	$	1.2	$	0.3

Not Designated as Hedges

Foreign exchange forward contracts	$	1.3	$	—	$	1.5	$	—
Total	$	1.3	$	—	$	1.5	$	—

Offsetting Derivative Assets and Liabilities

Offsetting of financial assets and liabilities under netting arrangements at June 30, 2017:



							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/Pledged		Net Amount

Assets
Foreign exchange forward contracts	$	6.7	$	—	$	6.7	$	(4.7	)	$	—	$	2.0
Total Assets	$	6.7	$	—	$	6.7	$	(4.7	)	$	—	$	2.0



							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/Pledged		Net Amount

Liabilities
Foreign exchange forward contracts	$	5.5	$	—	$	5.5	$	(4.6	)	$	—	$	0.9
Interest rate swaps	0.4		—		0.4		(0.1		)	—		0.3
Total Liabilities	$	5.9	$	—	$	5.9	$	(4.7	)	$	—	$	1.2

Offsetting of financial assets and liabilities under netting arrangements at December 31, 2016:



							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/Pledged		Net Amount

Assets
Foreign exchange forward contracts	$	14.7	$	—	$	14.7	$	(2.8	)	$	—	$	11.9
Total Assets	$	14.7	$	—	$	14.7	$	(2.8	)	$	—	$	11.9



							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/Pledged		Net Amount

Liabilities
Foreign exchange forward contracts	$	2.5	$	—	$	2.5	$	(2.5	)	$	—	$	—
Interest rate swaps	0.5		—		0.5		(0.3		)	—		0.2
Total Liabilities	$	3.0	$	—	$	3.0	$	(2.8	)	$	—	$	0.2

Cash Flow Hedging

Derivative [Line Items]

Schedule of Derivative Instruments

The following tables summarize the amount of gains (losses) recorded in AOCI on the Consolidated Balance Sheets and income (expense) on the Company’s Consolidated Statements of Operations related to all cash flow hedges for the three months ended June 30, 2017 and 2016:



	June 30, 2017
	Gain (Loss) in AOCI			Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)			Ineffective Portion Recognized in Income (Expense)

(in millions)

Effective Portion:
Interest rate swaps	$	(0.2	)	Interest expense	$	(0.4	)	$	—
Foreign exchange forward contracts	(1.2		)	Cost of products sold	0.5			—

Ineffective Portion:
Foreign exchange forward contracts	—			Other expense (income), net	—			(0.2		)
Total in cash flow hedging	$	(1.4	)		$	0.1		$	(0.2	)



	June 30, 2016
	Gain (Loss) in AOCI			Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)			Ineffective Portion Recognized in Income (Expense)

(in millions)

Effective Portion:
Interest rate swaps	$	(0.3	)	Interest expense	$	(0.9	)	$	—
Foreign exchange forward contracts	1.8			Cost of products sold	2.1			—
Foreign exchange forward contracts	0.1			SG&A expenses	—			—
Commodity contracts	0.3			Cost of products sold	0.2			—

Ineffective Portion:
Foreign exchange forward contracts	—			Other expense (income), net	—			(0.1		)
Total for cash flow hedging	$	1.9			$	1.4		$	(0.1	)



	June 30, 2017
	Gain (Loss) in AOCI			Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)			Ineffective Portion Recognized in Income (Expense)

(in millions)

Effective Portion:
Interest rate swaps	$	—		Interest expense	$	(1.1	)	$	—
Foreign exchange forward contracts	(2.7		)	Cost of products sold	1.0			—

Ineffective Portion:
Foreign exchange forward contracts	—			Other expense (income), net	—			(0.5		)
Total in cash flow hedging	$	(2.7	)		$	(0.1	)	$	(0.5	)



	June 30, 2016
	Gain (Loss) in AOCI			Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)			Ineffective Portion Recognized in Income (Expense)

(in millions)

Effective Portion:
Interest rate swaps	$	(1.5	)	Interest expense	$	(2.0	)	$	—
Foreign exchange forward contracts	(3.1		)	Cost of products sold	5.2			—
Foreign exchange forward contracts	(0.2		)	SG&A expenses	0.1			—
Commodity contracts	0.2			Cost of products sold	(0.1		)	—

Ineffective Portion:
Foreign exchange forward contracts	—			Other expense (income), net	—			(0.1		)
Total in cash flow hedging	$	(4.6	)		$	3.2		$	(0.1	)

Net Investment Hedging

Derivative [Line Items]

Schedule of Derivative Instruments

The following tables summarize the amount of gains (losses) recorded in AOCI on the Consolidated Balance Sheets and other income (expense) on the Company’s Consolidated Statements of Operations related to the hedges of net investments for the three months ended June 30, 2017 and 2016:



	June 30, 2017
	Gain (Loss) in AOCI			Consolidated Statements of Operations Location	Recognized in Income (Expense)

(in millions)

Effective Portion:
Foreign exchange forward contracts	$	(2.4	)	Other expense (income), net	$	0.3
Total for net investment hedging	$	(2.4	)		$	0.3



	June 30, 2016
	Gain (Loss) in AOCI		Consolidated Statements of Operations Location	Recognized in Income (Expense)

(in millions)

Effective Portion:
Foreign exchange forward contracts	$	13.2	Other expense (income), net	$	2.2
Total for net investment hedging	$	13.2		$	2.2



	June 30, 2017
	Gain (Loss) in AOCI			Consolidated Statements of Operations Location	Recognized in Income (Expense)

(in millions)

Effective Portion:
Foreign exchange forward contracts	$	(4.2	)	Other expense (income), net	$	0.8
Total for net investment hedging	$	(4.2	)		$	0.8



	June 30, 2016
	Gain (Loss) in AOCI			Consolidated Statements of Operations Location	Recognized in Income (Expense)

(in millions)

Effective Portion:
Foreign exchange forward contracts	$	(17.2	)	Other expense (income), net	$	4.7
Total for net investment hedging	$	(17.2	)		$	4.7

The following table summarizes the notional amounts of hedges of net investments by derivative instrument type at June 30, 2017 and the notional amounts expected to mature during the next 12 months:



	Aggregate Notional Amount		Aggregate Notional Amount Maturing within 12 Months

(in millions)

Foreign exchange forward contracts	$	33.6	$	33.6

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41641-113959

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-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624171-113959

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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details