XML 40 R30.htm IDEA: XBRL DOCUMENT v3.5.0.2
DERIVATIVES AND HEDGING TRANSACTIONS (Tables)
 9 Months Ended
Sep. 30, 2016
DERIVATIVES AND HEDGING TRANSACTIONS  
Gross fair value of the company's outstanding derivative assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Derivatives

 

Liability Derivatives

(millions)

 

 

September 30

 

December 31

 

 

September 30

 

December 31

 

 

    

 

2016

 

2015

    

 

2016

 

2015

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

 
$
33.7

 

 

 
$
70.2

 

 

 
$
32.6

 

 

 
$
3.2

 

Interest rate swap agreements

 

 

 
5.1

 

 

 

 -

 

 

 
12.7

 

 

 
5.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

 
13.0

 

 

 
41.0

 

 

 
19.9

 

 

 
32.7

 

Gross value of derivatives

 

 

 
51.8

 

 

 
111.2

 

 

 
65.2

 

 

 
41.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross amounts offset in the Consolidated Balance Sheet

 

 

 
(20.9)

 

 

 
(9.8)

 

 

 
(20.9)

 

 

 
(9.8)

 

Net value of derivatives

 

 

 
$
30.9

 

 

 
$
101.4

 

 

 
$
44.3

 

 

 
$
31.5

 

 

Summary of notional values of outstanding derivatives

 

 

 

 

 

 

 

 

 

 

 

Notional Values

 

 

September 30

 

December 31

(millions)

    

2016

    

2015

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 
$
4,285

 

 

 
$
4,029

 

Interest rate agreements

 

 
$
2,075

 

 

 
$
1,675

 

Net investment hedge contracts (a)

 

 

€ 65

 

 

 

€ 25

 

 

(a)

The net investment hedge contracts exclude the company’s euro denominated debt.
Impact on AOCI and earnings from derivative contracts qualified as cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter Ended 

 

Nine Months Ended 

 

 

 

 

September 30

 

September 30

(millions)

    

 

 

2016

 

2015

 

2016

 

2015

Unrealized gain (loss) recognized into AOCI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

AOCI (equity)

 

 
$
(12.9)

 

 

 
$
19.0

 

 
$
(40.4)

 

 

 
$
38.9

Interest rate swap agreements

 

AOCI (equity)

 

 
1.4

 

 

 
7.7

 

 
(11.5)

 

 

 
1.2

 

 

Total

 

 
$
(11.5)

 

 

 
$
26.7

 

 
$
(51.9)

 

 

 
$
40.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter Ended 

 

Nine Months Ended 

(millions)

 

 

 

September 30

 

September 30

Gain (loss) recognized in income

 

 

 

2016

 

2015

 

2016

 

2015

Foreign currency forward contracts

 

Cost of sales

 

 
$
5.0

 

 

 
$
13.3

 

 
$
26.6

 

 

 
$
23.2

 

 

SG&A

 

 
(0.7)

 

 

 
0.2

 

 
(20.3)

 

 

 
1.1

 

 

Interest expense, net

 

 

 -

 

 

 
1.4

 

 
2.9

 

 

 
1.4

 

 

Subtotal

 

 
4.3

 

 

 
14.9

 

 
9.2

 

 

 
25.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap agreements

 

Interest expense, net

 

 
(1.6)

 

 

 
(1.4)

 

 
(4.8)

 

 

 
(4.0)

 

 

Total

 

 
$
2.7

 

 

 
$
13.5

 

 
$
4.4

 

 

 
$
21.7

 

Impact on earnings from derivative contracts that qualified as fair value hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        

 

 

 

 

 

 

        

 

 

 

 

 

 

 

 

 

Third Quarter Ended 

 

Nine Months Ended 

 

 

 

 

September 30

 

September 30

(millions)

    

 

    

2016

 

2015

    

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on derivative recognized income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

 

Interest expense, net

 

 
$
(7.6)

 

 

 
$
7.6

 

 
$
6.1

 

 

 
$
9.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on hedged item recognized income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap

 

Interest expense, net

 

 
$
7.6

 

 

 
$
(7.6)

 

 
$
(6.1)

 

 

 
$
(9.5)

 

Revaluation gains and losses on euronotes and forward contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter Ended 

 

Nine Months Ended 

 

 

September 30

 

September 30

(millions)

    

2016

 

2015

 

2016

 

2015

Revaluation gains (losses), net of tax

 

 
$
(1.2)

 

 

 
$
(12.0)

 

 

 
$
(29.1)

 

 

 
$
66.8

 

Impact on earnings from derivative contracts not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter Ended 

 

Nine Months Ended 

 

 

 

 

 

September 30

 

September 30

 

(millions)

    

 

    

2016

 

2015

    

2016

 

2015

 

Gain (loss) recognized in income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

SG&A

 

 
$
(12.0)

 

 

 
$
7.1

 

 

 
$
(27.3)

 

 

 
$
6.4

 

 

 

Interest expense, net

 

 
1.0

 

 

 
(0.3)

 

 

 
(2.1)

 

 

 
(10.9)

 

 

 

Total

 

 
$
(11.0)

 

 

 
$
6.8

 

 

 
$
(29.4)

 

 

 
$
(4.5)