Derivative and Other Hedging Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value of Derivative Financial Instruments

The following table presents the fair value of derivative financial instruments as of September 30, 2013 and December 31, 2012:

	September 30, 2013				December 31, 2012
	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	$	2.5	$	8.7	$	—	$	12.4
Foreign currency contracts		8.2		5.8		9.0		4.2
Subtotal		10.7		14.5		9.0		16.6
Derivatives not designated as effective hedges:
Foreign currency contracts		6.2		6.4		1.2		2.0
Commodity contracts		0.5		0.2		0.1		0.2
Subtotal		6.7		6.6		1.3		2.2
Total	$	17.4	$	21.1	$	10.3	$	18.8

(a) Consolidated balance sheet location:

Asset: Other current and non-current assets

Liability: Other current and 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, 2013 and 2012 related to derivative financial instruments designated as effective hedges:

	Three months ended September 30, 2013									Three months ended September 30, 2012
	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	$	(1.5	)	$	—		$	—		$	(2.4	)	$	—		$	—
Foreign currency contracts		(8.9	)		2.6			0.3			(5.1	)		0.1			(5.5	)
Total	$	(10.4	)	$	2.6		$	0.3		$	(7.5	)	$	0.1		$	(5.5	)
Location of gain/(loss) in the consolidated results of operations:
Sales				$	2.0		$	—					$	(0.9	)	$	—
Cost of sales					0.6			—						1.0			—
SG&A					—			0.3						—			(5.5	)
Interest expense					—			—						—			—
Total				$	2.6		$	0.3					$	0.1		$	(5.5	)
	Nine months ended September 30, 2013									Nine months ended September 30, 2012
	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	$	6.2		$	—		$	—		$	(5.2	)	$	—		$	—
Foreign currency contracts		12.0			14.9			(3.8	)		(2.8	)		2.6			(6.3	)
Total	$	18.2		$	14.9		$	(3.8	)	$	(8.0	)	$	2.6		$	(6.3	)
Location of gain/(loss) in the consolidated results of operations:
Sales				$	(0.3	)	$	—					$	(0.9	)	$	—
Cost of sales					15.2			—						3.5			—
SG&A					—			(3.8	)					—			(6.3	)
Interest expense					—			—						—			—
Total				$	14.9		$	(3.8	)				$	2.6		$	(6.3	)

(a) Represents effective portion recognized in Other Comprehensive Income (Loss) (“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, 2013 and 2012 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)	2013			2012			2013		2012
Derivatives not designated as effective hedges:
Cash flow hedges:
Foreign currency contracts	$	(3.3	)	$	(4.5	)	$	2.3	$	(7.7	)
Commodity contracts		0.4			0.7			0.8		(0.2	)
Total	$	(2.9	)	$	(3.8	)	$	3.1	$	(7.9	)