Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 29, 2012

A summary of the fair value of the Company’s derivatives recorded in the Consolidated Balance Sheets at September 29, 2012 and December 31, 2011 follows (in millions):



	Balance Sheet Classification	2012		2011		Balance Sheet Classification	2012		2011
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	Other current assets	$	—	$	—	Accrued expenses	$	44.5	$	86.9
Interest Rate Contracts Fair Value	Other current assets	11.7		21.7		Accrued expenses	1.0		5.2
	LT other assets	19.6		15.2		LT other liabilities	—		—
Foreign Exchange Contracts Cash Flow	Other current assets	3.5		5.3		Accrued expenses	6.0		1.4
	LT other assets	0.5		—		LT other liabilities	0.6		0.8
Net Investment Hedge	Other current assets	—		27.7		Accrued expenses	36.8		—
		$	35.3	$	69.9		$	88.9	$	94.3
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	87.2	$	48.1	Accrued expenses	$	52.4	$	63.4
	LT other assets	—		24.5		LT other liabilities	11.7		24.0
		$	87.2	$	72.6		$	64.1	$	87.4

Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) into Earnings for Active Derivative Financial Instruments

The tables below detail pre-tax amounts reclassified from accumulated other comprehensive income (loss) into earnings for active derivative financial instruments during the periods in which the underlying hedged transactions affected earnings for the nine months ended September 29, 2012 and October 1, 2011 (in millions):



Year-to-date 2012 (In millions)	Gain (Loss) Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)		Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	(9.8	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(11.0	)	Cost of Sales	$	2.2	$	—



Year-to-date 2011 (In millions)	Gain (Loss) Recorded in OCI			Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income (Effective Portion)			Gain (Loss) Recognized in Income (Ineffective Portion*)
Interest Rate Contracts	$	(62.0	)	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	(2.2	)	Cost of sales	$	(20.5	)	—

* Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

Fair Value Adjustments Relating to Swaps

A summary of the fair value adjustments relating to these swaps is as follows (in millions):



	Third Quarter 2012					Year-to-Date 2012
Income Statement Classification	Gain/(Loss) on Swaps		Gain /(Loss) on Borrowings			Gain/(Loss) on Swaps		Gain /(Loss) on Borrowings
Interest Expense	$	0.7	$	(0.7	)	$	25.7	$	(25.7	)



	Third Quarter 2011					Year-to-Date 2011
Income Statement Classification	Gain/(Loss) on Swaps		Gain /(Loss) on Borrowings			Gain/(Loss) on Swaps		Gain /(Loss) on Borrowings
Interest Expense	$	17.0	$	(17.0	)	$	28.0	$	(28.0	)

Details of Foreign Exchange Contracts Pre-Tax Amounts

The pre-tax gain or loss from year-to-date fair value changed was as follows (in millions):



	Third Quarter 2012							Year-to-Date 2012
Income Statement Classification	Amount Recorded in OCI Gain (Loss)			Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement		Amount Recorded in OCI Gain (Loss)			Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement
Other-net	$	(45.7	)	$	—	$	—	$	(52.8	)	$	—	$	—

	Third Quarter 2011							Year-to-Date 2011
Income Statement Classification	Amount Recorded in OCI Gain (Loss)			Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement		Amount Recorded in OCI Gain (Loss)			Effective Portion Recorded in Income Statement		Ineffective Portion* Recorded in Income Statement
Other-net	$	23.6		$	—	$	—	$	(12.4	)	$	—	$	—

* Includes ineffective portion and amount excluded from effectiveness testin

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The income statement impacts related to derivatives not designated as hedging instruments for 2012 and 2011 are as follows (in millions):



Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Third Quarter 2012 Amount of Gain (Loss) Recorded in Income on Derivative		Year-to-Date 2012 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other-net	$	30.3	$	30.2

Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Third Quarter 2011 Amount of Gain (Loss) Recorded in Income on Derivative		Year-to-Date 2011 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other-net	$	45.9	$	6.3

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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