Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value of Derivative Financial Instruments

At December 31, 2015 and 2014, the fair value of derivative financial instruments is as follows:

	2015				2014
	Fair Value of Derivatives				Fair Value of Derivatives				Weighted Average Remaining Term (years)
(in millions)	Asset (a)		Liability (a)		Asset (a)		Liability (a)
Derivatives designated as effective hedges:
Cash flow hedges:
Interest rate swaps	$	—	$	7.4	$	0.6	$	7.2		2.7
Foreign currency contracts		23.6		4.7		25.9		3.8		0.6
Fair value hedges:
Interest rate swaps		—		—		—		2.2		—
Subtotal		23.6		12.1		26.5		13.2
Derivatives not designated as effective hedges:
Foreign currency contracts		8.3		4.9		2.8		1.3		0.6
Commodity contracts		—		8.9		—		9.0		0.5
Subtotal		8.3		13.8		2.8		10.3
Total	$	31.9	$	25.9	$	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 2015, 2014 and 2013 related to derivative financial instruments designated as effective hedges:

	2015								2014								2013
	Gain/(Loss)								Gain/(Loss)								Gain/(Loss)
(in millions)	Recognized in OCI (a)			Reclassified from AOCI to Income		Recognized in Income (b)			Recognized in OCI (a)			Reclassified from AOCI to Income		Recognized in Income (b)			Recognized in OCI (a)		Reclassified from AOCI to Income		Recognized in Income (b)
Derivatives designated as effective hedges:
Cash flow hedges:
Interest rate swaps	$	(0.8	)	$	—	$	—		$	(3.0	)	$	—	$	—		$	8.9	$	—	$	—
Foreign currency contracts		35.9			32.4		(8.0	)		27.7			6.3		(1.9	)		13.9		18.2		(5.5	)
Total	$	35.1		$	32.4	$	(8.0	)	$	24.7		$	6.3	$	(1.9	)	$	22.8	$	18.2	$	(5.5	)
Location of gain/(loss) in the consolidated results of operations:
Net sales				$	1.0	$	—					$	2.0	$	—				$	0.1	$	—
Cost of sales					31.4		—						4.3		—					18.1		—
SG&A					—		(8.0	)					—		(1.9	)				—		(5.5	)
Total				$	32.4	$	(8.0	)				$	6.3	$	(1.9	)			$	18.2	$	(5.5	)

(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 2015, 2014 and 2013 related to derivative financial instruments not designated as effective hedges:

	Gain/(Loss) Recognized in Income (a)
(in millions)	2015			2014			2013
Derivatives not designated as effective hedges:
Cash flow derivatives:
Foreign currency contracts	$	14.7		$	4.3		$	(2.7	)
Commodity contracts		(11.2	)		(8.9	)		0.9
Total	$	3.5		$	(4.6	)	$	(1.8	)