Derivative and Other Hedging Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value of Derivative Financial Instruments

The following table presents the fair value of derivative financial instruments as of June 30, 2014 and December 31, 2013:

	June 30, 2014				December 31, 2013
	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	$	1.0	$	8.0	$	4.5	$	8.0
Foreign currency contracts		4.3		7.9		11.3		9.1
Fair value hedges:
Interest rate swaps		—		0.3		—		—
Subtotal		5.3		16.2		15.8		17.1
Derivatives not designated as effective hedges:
Foreign currency contracts		0.8		3.6		3.5		2.4
Commodity contracts		0.8		—		0.2		0.2
Subtotal		1.6		3.6		3.7		2.6
Total	$	6.9	$	19.8	$	19.5	$	19.7
(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 six months ended June 30, 2014 and 2013 related to derivative financial instruments designated as effective hedges:

	Three months ended June 30, 2014								Three months ended June 30, 2013
	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	$	(2.8	)		—	$	—		$	7.0	$	—		$	—
Foreign currency contracts		(2.9	)		2.2		(2.3	)		7.0		6.2			(3.2	)
Total	$	(5.7	)		2.2	$	(2.3	)	$	14.0	$	6.2		$	(3.2	)
Location of gain/(loss) in the consolidated results of operations:
Sales				$	0.2	$	—				$	(2.1	)	$	—
Cost of sales					2.0		—					8.3			—
SG&A					—		(2.3	)				—			(3.2	)
Total				$	2.2	$	(2.3	)			$	6.2		$	(3.2	)

	Six months ended June 30, 2014								Six months ended June 30, 2013
	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	$	(3.5	)	$	—	$	—		$	7.7	$	—		$	—
Foreign currency contracts		(2.3	)		4.2		(3.9	)		20.9		12.3			(4.1	)
Total	$	(5.8	)	$	4.2	$	(3.9	)	$	28.6	$	12.3		$	(4.1	)
Location of gain/(loss) in the consolidated results of operations:
Sales				$	1.0	$	—				$	(2.3	)	$	—
Cost of sales					3.2		—					14.6			—
SG&A					—		(3.9	)				—			(4.1	)
Total				$	4.2	$	(3.9	)			$	12.3		$	(4.1	)

(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 six months ended June 30, 2014 and 2013 related to derivative financial instruments not designated as effective hedges:

	Gain/(Loss) Recognized in Income (a)
	Three months ended June 30,						Six months ended June 30,
(in millions)	2014			2013			2014			2013
Derivatives not designated as effective hedges:
Cash flow hedges:
Foreign currency contracts	$	(1.4	)	$	(0.8	)	$	(6.4	)	$	5.6
Commodity contracts		0.5			0.3			0.9			0.4
Total	$	(0.9	)	$	(0.5	)	$	(5.5	)	$	6.0