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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding foreign currency forward contracts

We had the following outstanding foreign currency forward contracts as of September 30, 2016:
 
Foreign currency contracts qualifying as cash flow hedges:
 
Notional amount
Euro
 
EUR
 
51.3

 
million
Japanese yen
 
JPY
 
1,127.5

 
million
Philippine peso
 
PHP
 
376.7

 
million
Korean Won
 
KRW
 
18,900.0

 
million
Fair values of derivative instruments
The following table reflects the fair values of derivative instruments, all of which are designated as Level 2 of the fair value hierarchy, as of September 30, 2016 and January 1, 2016 (U.S. dollars in millions):
 
Derivatives designated as hedging instruments (1)
 
Foreign exchange contracts
Balance Sheet location:
September 30, 2016 (2)
 
January 1, 2016
Asset derivatives:
 
 
 
Prepaid expenses and other current assets
$
2.4

 
$
11.9

Total asset derivatives
$
2.4

 
$
11.9

 
 
 
 
Liability derivatives:
 

 
 

Accounts payable and accrued expenses
$
1.8

 
$
—

Total liability derivatives
$
1.8

 
$
—


(1) See Note 16, "Fair Value Measurements", for fair value disclosures.
(2) We expect that $0.6 million of the net fair value of hedges recognized as a gain in accumulated other comprehensive income ("AOCI") will be transferred to earnings during the next 12 months, along with the earnings effect of the related forecasted transactions.
Effect of derivative instruments on Consolidated Statements of Income
The following table reflects the effect of derivative instruments on the Consolidated Statements of Income for the quarters and nine months ended September 30, 2016 and September 25, 2015 (U.S. dollars in millions):
 
 
Derivatives in effective cash flow
hedging relationships
Amount of gain (Loss) recognized in other
comprehensive income on derivatives
(effective portion)
 
Location of gain
(loss) reclassified
from AOCI into
income (effective
portion)
Amount of gain (loss) reclassified from
AOCI into income (effective portion)
 
Quarter ended
 
 
Quarter ended
 
September 30,
2016
 
September 25,
2015
 
 
September 30,
2016
 
September 25,
2015
Foreign exchange contracts
$
(1.5
)
 
$
(7.5
)
 
Net sales
$
(1.0
)
 
$
8.3

Foreign exchange contracts
(0.3
)
 
—

 
Cost of products sold
0.2

 
0.4

Total
$
(1.8
)
 
$
(7.5
)
 
 
$
(0.8
)
 
$
8.7

 
 
 
 
 
 
 
 
 
 
Nine months ended
 
 
Nine months ended
 
September 30,
2016
 
September 25,
2015
 
 
September 30,
2016
 
September 25,
2015
Foreign exchange contracts
$
(11.5
)
 
$
(7.7
)
 
Net sales
$
3.6

 
$
28.5

Foreign exchange contracts
0.1

 
0.2

 
Cost of products sold
0.2

 
0.3

Total
$
(11.4
)
 
$
(7.5
)
 
 
$
3.8

 
$
28.8