Derivative and Other Hedging Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value of Derivative Financial Instruments

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

	September 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	$	—	$	11.0	$	0.6	$	7.2
Foreign currency contracts		25.1		5.8		25.9		3.8
Fair value hedges:
Interest rate swaps		3.3		—		—		2.2
Subtotal		28.4		16.8		26.5		13.2
Derivatives not designated as effective hedges:
Foreign currency contracts		8.3		5.4		2.8		1.3
Commodity contracts		—		9.4		—		9.0
Subtotal		8.3		14.8		2.8		10.3
Total	$	36.7	$	31.6	$	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 nine months ended September 30, 2015 and 2014 related to derivative financial instruments designated as effective hedges:

	Three months ended September 30, 2015									Three months ended September 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	$	(2.9	)	$	—		$	—		$	2.8		$	—	$	—
Foreign currency contracts		15.8			7.4			(1.2	)		16.0			1.1		1.0
Total	$	12.9			7.4		$	(1.2	)	$	18.8		$	1.1	$	1.0
Location of gain/(loss) in the consolidated results of operations:
Net sales				$	(0.1	)	$	—					$	0.5	$	—
Cost of sales					7.5			—						0.6		—
SG&A					—			(1.2	)					—		1.0
Total				$	7.4		$	(1.2	)				$	1.1	$	1.0
	Nine months ended September 30, 2015									Nine months ended September 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	$	(4.4	)	$	—		$	—		$	(0.7	)	$	—	$	—
Foreign currency contracts		25.2			26.0			(4.7	)		13.7			5.3		(2.9	)
Total	$	20.8		$	26.0		$	(4.7	)	$	13.0		$	5.3	$	(2.9	)
Location of gain/(loss) in the consolidated results of operations:
Net sales				$	0.7		$	—					$	1.5	$	—
Cost of sales					25.3			—						3.8		—
SG&A					—			(4.7	)					—		(2.9	)
Total				$	26.0		$	(4.7	)				$	5.3	$	(2.9	)

(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 nine months ended September 30, 2015 and 2014 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)	2015			2014			2015			2014
Derivatives not designated as effective hedges:
Cash flow hedges:
Foreign currency contracts	$	4.3		$	6.9		$	9.5		$	0.5
Commodity contracts		(8.2	)		(1.1	)		(7.5	)		(0.2	)
Total	$	(3.9	)	$	5.8		$	2.0		$	0.3

(a) Classified in SG&A.