Derivative and Other Hedging Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value of Derivative Financial Instruments

The following table presents the fair value of derivative financial instruments as of September 30, 2012 and December 31, 2011:

	September 30, 2012				December 31, 2011
	Fair Value of Derivatives				Fair Value of Derivatives
(in millions)	Asset (a)		Liability (a)		Asset (a)		Liability (a)
Derivatives designated as effective hedges:
Cash flow hedges:
Interest rate swaps	$	—	$	13.8	$	—	$	8.4
Foreign currency contracts		4.5		6.8		12.2		8.1
Subtotal		4.5		20.6		12.2		16.5
Derivatives not designated as effective hedges:
Foreign currency contracts		0.2		4.9		1.1		1.7
Commodity contracts		0.1		0.1		1.0		0.3
Subtotal		0.3		5.0		2.1		2.0
Total	$	4.8	$	25.6	$	14.3	$	18.5

(a) Consolidated balance sheet location:

Asset: Other current and non-current assets

Liability: Other non-current liabilities

Gain and Loss Activity Related to Derivative Financial Instruments Designated as Effective Hedges

The following table presents gain and loss activity (on a pretax basis) for the three and nine months ended September 30, 2012 and 2011 related to derivative financial instruments designated as effective hedges:

	Three months ended September 30, 2012									Three months ended September 30, 2011
	Gain/(Loss)									Gain/(Loss)
(in millions)	Recognized in OCI (a) (effective portion)			Reclassified from AOCI to Income			Recognized in Income (b)			Recognized in OCI (a) (effective portion)			Reclassified from AOCI to Income			Recognized in Income (b)
Derivatives designated as effective hedges:
Cash flow hedges:
Interest rate swaps	$	(2.4	)	$	—		$	—		$	(1.2	)		—		$	—
Foreign currency contracts		(5.1	)		0.1			(5.5	)		8.2			(5.6	)		2.7
Total	$	(7.5	)	$	0.1		$	(5.5	)	$	7.0			(5.6	)	$	2.7
Location of gain/(loss) in the consolidated results of operations:
Sales				$	(0.9	)	$	—					$	(0.6	)	$	—
Cost of Sales					1.0			—						(5.0	)		—
SG&A					—			(5.5	)					—			2.7
Interest expense					—			—						—			—
Total				$	0.1		$	(5.5	)				$	(5.6	)	$	2.7

	Nine months ended September 30, 2012									Nine months ended September 30, 2011
	Gain/(Loss)									Gain/(Loss)
(in millions)	Recognized in OCI (a) (effective portion)			Reclassified from AOCI to Income			Recognized in Income (b)			Recognized in OCI (a) (effective portion)			Reclassified from AOCI to Income			Recognized in Income (b)
Derivatives designated as effective hedges:
Cash flow hedges:
Interest rate swaps	$	(5.2	)	$	—		$	—		$	(3.7	)	$	—		$	—
Foreign currency contracts		(2.8	)		2.6			(6.3	)		(3.5	)		(16.2	)		(2.9	)
Total	$	(8.0	)	$	2.6		$	(6.3	)	$	(7.2	)	$	(16.2	)	$	(2.9	)
Location of gain/(loss) in the consolidated results of operations:
Sales				$	(0.9	)	$	—					$	(1.0	)	$	—
Cost of Sales					3.5			—						(15.2	)		—
SG&A					—			(6.3	)					—			(2.9	)
Interest expense					—			—						—			—
Total				$	2.6		$	(6.3	)				$	(16.2	)	$	(2.9	)

(a) Represents effective portion recognized in Other Comprehensive Income (“OCI”).

(b) Represents portion excluded from effectiveness testing.

Gain and Loss Activity Related to Derivative Financial Instruments Not Designated as Effective Hedges

The following table presents gain and loss activity (on a pretax basis) for the three and nine months ended September 30, 2012 and 2011 related to derivative financial instruments not designated as effective hedges:

	Gain/(Loss) Recognized in Income (a)
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2012			2011			2012			2011
Derivatives not designated as effective hedges:
Cash flow hedges:
Foreign currency contracts	$	(4.5	)	$	(0.1	)	$	(7.7	)	$	(1.0	)
Commodity contracts		0.7			(1.6	)		(0.2	)		(1.6	)
Fair value derivatives:
Interest rate swaps		—			0.2			—			0.2
Total	$	(3.8	)	$	(1.5	)	$	(7.9	)	$	(2.4	)

(a) Classified in SG&A.