Derivatives (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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



	As of March 31, 2016			As of December 31, 2015
Unrealized losses on unsettled futures contracts	$	6.0		$	13.2
Income tax benefit	(2.2		)	(4.8		)
Losses included in AOCL, net of tax ⁽¹⁾	$	3.8		$	8.4

⁽¹⁾ Assuming commodity and foreign currency prices remain constant, we expect to reclassify $4.4 million of derivative losses into earnings within the next 12 months.

Outstanding contracts designated and not designated as cash flow hedges

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



	As of March 31, 2016	As of December 31, 2015
Copper	32.4	34.7

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



	As of March 31, 2016	As of December 31, 2015
Notional Amounts (in local currency):
Mexican Peso	151.6	201.4

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 March 31, 2016	As of December 31, 2015
Copper	3.1	3.3
Aluminum	2.9	3.2

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



	As of March 31, 2016	As of December 31, 2015
Notional Amounts (in local currency):
Mexican Peso	48.5	53.0
Indian Rupee	504.2	30.8
Euro	2.7	3.2
Russian Ruble	215.9	—
Polish Zloty	24.2	25.4

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 March 31, 2016		As of December 31, 2015		As of March 31, 2016		As of December 31, 2015
Current Assets:
Other Assets
Commodity futures contracts	$	0.1	$	—	$	—	$	—
Foreign currency forward contracts	—		—		0.3		0.2
Non-Current Assets:
Other Assets, net
Commodity futures contracts	0.7		—		0.1		—
Total Assets	$	0.8	$	—	$	0.4	$	0.2
Current Liabilities:
Accrued Expenses
Commodity futures contracts	$	6.5	$	12.5	$	0.9	$	1.5
Foreign currency forward contracts	0.5		0.4		0.3		—
Non-Current Liabilities:
Other Liabilities
Commodity futures contracts	—		0.4		—		—
Foreign currency forward contracts			—		—		—
Total Liabilities	$	7.0	$	13.3	$	1.2	$	1.5

⁽¹⁾ All derivative instruments are classified as Level 2 within the fair value hierarchy. See Note 15 for more information.

Effect of derivative instruments on Consolidated Statements of Operations



Derivatives Designated as Cash Flow Hedges	For the Three Months Ended March 31,
	2016		2015
Amount of Loss reclassified from AOCL into Income (effective portion) ⁽¹⁾	$	4.8	$	3.4
Amount of Loss recognized in Net income (ineffective portion) ⁽²⁾	$	0.1	$	—



Derivatives Not Designated as Hedging Instruments	For the Three Months Ended March 31,
	2016		2015
Amount of Loss (Gain) Recognized in Net Income:
Commodity futures contracts ⁽²⁾	$	—	$	0.3
Foreign currency forward contracts ⁽²⁾	0.3		0.2
	$	0.3	$	0.5

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

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