Derivatives (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

We recorded the following amounts in AOCL related to our cash flow hedges (in millions):



	As of September 30, 2015			As of December 31, 2014
Unrealized losses on unsettled futures contracts	$	12.3		$	7.2
Income tax benefit	(4.5		)	(2.6		)
Losses included in AOCL, net of tax ⁽¹⁾	$	7.8		$	4.6

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $6.8 million of derivative losses into earnings within the next 12 months.

Outstanding commodity futures contracts designated as cash flow hedges

We had the following outstanding commodity futures contracts designated as cash flow hedges (in millions of pounds):



	As of September 30, 2015	As of December 31, 2014
Copper	29.0	29.4

We had the following outstanding foreign exchange forward contracts designated as cash flow hedges (in millions):



	As of September 30, 2015	As of December 31, 2014
Notional Amounts (in local currency):
Mexican Peso	250.9	—

Derivatives not Designated as Cash Flow Hedges

For commodity derivatives not designated as cash flow hedges, we follow the same hedging strategy as derivatives designated as cash flow hedges, except that we elect not to designate them as cash flow hedges at the inception of the arrangement. We had the following outstanding commodity futures contracts not designated as cash flow hedges (in millions of pounds):



	As of September 30, 2015	As of December 31, 2014
Copper	3.3	2.9
Aluminum	2.5	2.2

We also had the following outstanding foreign currency forward contracts not designated as cash flow hedges (in millions):



	As of September 30, 2015	As of December 31, 2014
Notional Amounts (in local currency):
Brazilian Real	—	8.7
Mexican Peso	—	229.7
United States Dollar	7.1	4.5
Euro	6.0	3.6
Polish Zloty	29.9	30.6
Russian Ruble	94.4	80.8

Location and amounts of derivative fair values in Consolidated Balance Sheets and derivative gains and losses in Consolidated Statements of Operations

The following tables provide the locations and amounts of derivative fair values in the Consolidated Balance Sheets and derivative gains and losses in the Consolidated Statements of Operations (in millions):



	Fair Values of Derivative Instruments ⁽¹⁾
	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	As of September 30, 2015		As of December 31, 2014		As of September 30, 2015		As of December 31, 2014
Current Assets:
Other Assets
Commodity futures contracts	$	—	$	—	$	—	$	—
Foreign currency forward contracts	—		—		0.1		0.3
Non-Current Assets:
Other Assets, net
Commodity futures contracts	—		—		—		—
Total Assets	$	—	$	—	$	0.1	$	0.3
Current Liabilities:
Accrued Expenses
Commodity futures contracts	$	10.4	$	6.7	$	1.4	$	0.7
Foreign currency forward contracts	0.4		—		0.1		—
Non-Current Liabilities:
Other Liabilities
Commodity futures contracts	1.5		0.5		0.3		0.1
Foreign currency forward contracts	0.1		—		—		—
Total Liabilities	$	12.4	$	7.2	$	1.8	$	0.8

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 16 for more information.

Effect of Derivative Instruments on Consolidated Statements of Operations



Derivatives Designated as Cash Flow Hedges	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Amount of Loss reclassified from AOCL into Income (Effective Portion) ⁽¹⁾	$	3.2	$	1.0	$	9.4	$	4.9
Amount of Loss (Gain) recognized in Net income (Ineffective Portion) ⁽²⁾	$	—	$	—	$	—	$	0.1



Derivatives Not Designated as Hedging Instruments	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2015		2014			2015		2014
Amount of Loss (Gain) Recognized in Net Income:
Commodity futures contracts ⁽²⁾	$	1.4	$	0.3		$	2.2	$	0.6
Foreign currency forward contracts ⁽²⁾	—		(0.2		)	0.2		(0.1		)
	$	1.4	$	0.1		$	2.4	$	0.5

⁽¹⁾ The loss was recorded in Cost of goods sold in the accompanying Consolidated Statements of Operations.

⁽²⁾ The loss (gain) was recorded in Losses (gains) and other expenses, net in the accompanying Consolidated Statements of Operations.