DERIVATIVES AND HEDGING TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2019

DERIVATIVES AND HEDGING TRANSACTIONS

Gross fair value of the company's outstanding derivative assets and liabilities

(millions)
	Derivatives Assets				Derivatives Liabilities
	June 30		December 31		June 30		December 31
(millions)	2019		2018		2019		2018
Derivatives designated as hedging instruments
Foreign currency forward contracts		$61.8		$40.4		$2.4		$10.2
Interest rate swap agreements		-		-		-		0.2
Derivatives not designated as hedging instruments
Foreign currency forward contracts		39.3		31.9		35.2		30.9
Gross value of derivatives		101.1		72.3		37.6		41.3
Gross amounts offset in the Consolidated Balance Sheet		(10.6)		(17.7)		(10.6)		(17.7)
Net value of derivatives		$90.5		$54.6		$27.0		$23.6

Summary of notional values of outstanding derivatives

	Notional Values
	June 30		December 31
(millions)	2019		2018
Foreign currency forward contracts		$ 5,707		$ 6,226
Interest rate agreements		-		400

Schedule of amounts on the Balance Sheet related to cumulative basis adjustments for fair value hedges

Line item in which the hedged item is included	Carrying amount of the hedged liabilities				Cumulative amount of the fair value hedging adjustment included in the carrying amount of the hedged liabilities
	Second Quarter Ended				Second Quarter Ended
	June 30				June 30
(millions)	2019		2018		2019		2018
Long-term debt		$-		$645.5		$-		$3.7

Revaluation gains and losses on euronotes and forward contracts

	Second Quarter Ended				Six Months Ended
	June 30				June 30
(millions)	2019		2018		2019		2018
Revaluation gains (losses), net of tax		$22.7		$49.0		$16.1		$22.8

Impact on AOCI and earnings from derivative contracts qualified as cash flow hedges

	Second Quarter Ended
	June 30
	2019				2018
(millions)		COS	SG&A	Interest		COS	SG&A	Interest
Gain (loss) on derivatives in cash flow hedging relationship:
Foreign currency forward contracts
Amount of gain (loss) reclassified from AOCI to income		$4.7	$26.6	$-		$(4.8)	$74.5	$-
Amount excluded from the assessment of effectiveness recognized in earnings based on changes in fair value		-	-	7.3		-	-	8.5
Interest rate swap agreements
Amount of gain (loss) reclassified from AOCI to income		-	-	(0.3)		-	-	(1.6)
Gain (loss) on derivatives in fair value hedging relationship:
Interest rate swaps
Hedged items		-	-	-		-	-	(1.4)
Derivatives designated as hedging instruments		-	-	-		-	-	1.4
Gain (loss) on derivatives not designated as hedging instruments:
Foreign currency forward contracts
Amount of gain (loss) recognized in income		-	7.9	-		-	16.3	2.1
Total gain (loss)		$4.7	$34.5	$7.0		$(4.8)	$90.8	$9.0
	Six Months Ended
	June 30
	2019				2018
(millions)		COS	SG&A	Interest		COS	SG&A	Interest
Gain (loss) on derivatives in cash flow hedging relationship:
Foreign currency forward contracts
Amount of gain (loss) reclassified from AOCI to income		$9.1	$19.5	$-		$(6.7)	$26.9	$-
Amount excluded from the assessment of effectiveness recognized in earnings based on changes in fair value		-	-	14.3		-	-	16.8
Interest rate swap agreements
Amount of gain (loss) reclassified from AOCI to income		-	-	(0.5)		-	-	(3.4)
Gain (loss) on derivatives in fair value hedging relationship:
Interest rate swaps
Hedged items		-	-	0.2		-	-	(0.3)
Derivatives designated as hedging instruments		-	-	(0.2)		-	-	0.3
Gain (loss) on derivatives not designated as hedging instruments:
Foreign currency forward contracts
Amount of gain (loss) recognized in income		-	14.0	-		-	(2.1)	3.7
Total gain (loss)		$9.1	$33.5	$13.8		$(6.7)	$24.8	$17.1