Derivative and Other Hedging Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value of Derivative Financial Instruments

The following table presents the fair value of derivative financial instruments as of June 30, 2015 and December 31, 2014:

	June 30, 2015				December 31, 2014
	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	$	—	$	8.1	$	0.6	$	7.2
Foreign currency contracts		22.0		9.3		25.9		3.8
Fair value hedges:
Interest rate swaps		0.8		—		—		2.2
Subtotal		22.8		17.4		26.5		13.2
Derivatives not designated as effective hedges:
Foreign currency contracts		7.0		3.1		2.8		1.3
Commodity contracts		1.1		5.3		—		9.0
Subtotal		8.1		8.4		2.8		10.3
Total	$	30.9	$	25.8	$	29.3	$	23.5

(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, 2015 and 2014 related to derivative financial instruments designated as effective hedges:

	Three months ended June 30, 2015								Three months ended June 30, 2014
	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	$	1.4		$	—	$	—		$	(2.8	)	$	—	$	—
Foreign currency contracts		(3.6	)		11.2		(2.6	)		(2.9	)		2.2		(2.3	)
Total	$	(2.2	)	$	11.2	$	(2.6	)	$	(5.7	)	$	2.2	$	(2.3	)
Location of gain/(loss) in the consolidated results of operations:
Sales				$	0.5	$	—					$	0.2	$	—
Cost of Sales					10.7		—						2.0		—
SG&A					—		(2.6	)					—		(2.3	)
Total				$	11.2	$	(2.6	)				$	2.2	$	(2.3	)
	Six months ended June 30, 2015								Six months ended June 30, 2014
	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	)	$	—	$	—		$	(3.5	)	$	—	$	—
Foreign currency contracts		9.4			18.6		(3.5	)		(2.3	)		4.2		(3.9	)
Total	$	7.9		$	18.6	$	(3.5	)	$	(5.8	)	$	4.2	$	(3.9	)
Location of gain/(loss) in the consolidated results of operations:
Sales				$	0.8	$	—					$	1.0	$	—
Cost of Sales					17.8		—						3.2		—
SG&A					—		(3.5	)					—		(3.9	)
Total				$	18.6	$	(3.5	)				$	4.2	$	(3.9	)

(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, 2015 and 2014 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)	2015			2014			2015		2014
Derivatives not designated as effective hedges:
Cash flow hedges:
Foreign currency contracts	$	(9.0	)	$	(1.4	)	$	5.2	$	(6.4	)
Commodity contracts		2.5			0.5			0.7		0.9
Total	$	(6.5	)	$	(0.9	)	$	5.9	$	(5.5	)

(a) Classified in SG&A.