Derivatives

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

5. DERIVATIVES

Our business and financial results are affected by fluctuations in world financial markets, including interest rates and currency exchange rates.  Our hedging policy has been developed to manage these risks to an acceptable level based on management’s judgment of the appropriate trade-off between risk, opportunity and cost.  We do not hold financial instruments for trading or speculative purposes.

Currency forward contracts  From time to time, we use foreign currency forward contracts to reduce the effects of fluctuations in exchange rates, primarily relating to the Mexican Peso, Euro, Brazilian Real, British Pound Sterling, Thai Baht, Swedish Krona, Chinese Yuan and Polish Zloty.  As of June 30, 2016, we have currency forward contracts outstanding with a notional amount of $196.8 million that hedge our exposure to changes in foreign currency exchange rates for certain payroll expenses into the second quarter of 2019 and certain direct and indirect inventory and other working capital items through 2016.  

The following table summarizes the reclassification of pre-tax derivative losses into net income from accumulated other comprehensive loss for those derivative instruments designated as cash flow hedges under Accounting Standards Codification 815 - Derivatives and Hedging (ASC 815):

		Loss Reclassified During												Loss Expected to
	Location of Loss	Three Months Ended						Six Months Ended						be Reclassified
	Reclassified into	June 30,						June 30,						During the
	Net Income	2016			2015			2016			2015			Next 12 Months
		(in millions)
Currency forward contracts	Cost of Goods Sold	$	(2.3	)	$	(2.3	)	$	(4.3	)	$	(3.8	)	$	(8.8	)

See Note 10 - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (AOCI) for amounts recognized in other comprehensive income (loss) during the three and six months ended June 30, 2016 and June 30, 2015.

The following table summarizes the amount and location of losses recognized in the Condensed Consolidated Statements of Income for those derivative instruments not designated as hedging instruments under ASC 815:

		Loss Recognized During
	Location of Loss	Three Months Ended						Six Months Ended
	Recognized in	June 30,						June 30,
	Net Income	2016			2015			2016			2015
		(in millions)
Currency forward contracts	Cost of Goods Sold	$	(2.2	)	$	(1.0	)	$	(2.7	)	$	(2.0	)
Currency forward contracts	Other Income, Net	—			(0.3		)	(0.7		)	(0.3		)