DERIVATIVES AND HEDGING TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2020

DERIVATIVES AND HEDGING TRANSACTIONS

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

(millions)
	Derivative Assets				Derivative Liabilities
	June 30		December 31		June 30		December 31
(millions)	2020		2019		2020		2019
Derivatives designated as hedging instruments
Foreign currency forward contracts		$76.1		$67.4		$1.7		$2.1
Derivatives not designated as hedging instruments
Foreign currency forward contracts (a)		23.8		16.5		26.2		7.9
Gross value of derivatives		99.9		83.9		27.9		10.0
Gross amounts offset in the Consolidated Balance Sheet		(21.6)		(4.2)		(21.6)		(4.2)
Net value of derivatives		$78.3		$79.7		$6.3		$5.8

(a) Foreign currency forward contract derivatives not designated as hedging instruments includes discontinued operations of $1.0 million of derivative assets and $0.6 million of derivative liabilities as of December 31, 2019.

Summary of notional values of outstanding derivatives

	Notional Values
		June 30	December 31
(millions)		2020	2019
Foreign currency forward contracts (a)		$ 4,699		$ 4,004

(a) Foreign currency forward contract notional values include discontinued operations of approximately $9 million as of December 31, 2019.

Revaluation gains and losses on euronotes and forward contracts

	Second Quarter Ended				Six Months Ended
	June 30				June 30
(millions)	2020		2019		2020		2019
Revaluation (losses) gains, net of tax		$(2.9)		$22.7		$(4.0)		$16.1

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

	Second Quarter Ended
	June 30
	2020				2019
(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		$3.8	$(6.2)	$-		$4.7	$26.6	$-
Amount excluded from the assessment of effectiveness recognized in earnings based on changes in fair value		-	-	8.1		-	-	7.3
Interest rate swap agreements
Amount of gain (loss) reclassified from AOCI to income		-	-	(0.3)		-	-	(0.3)
Gain (loss) on derivatives not designated as hedging instruments:
Foreign currency forward contracts
Amount of gain (loss) recognized in income (a)		-	0.7	(1.2)		-	7.9	-
Total gain (loss) of all derivative instruments		$3.8	$(5.5)	$6.6		$4.7	$34.5	$7.0
	Six Months Ended
	June 30
	2020				2019
(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		$6.0	$(7.3)	$-		$9.1	$19.5	$-
Amount excluded from the assessment of effectiveness recognized in earnings based on changes in fair value		-	-	13.5		-	-	14.3
Interest rate swap agreements
Amount of gain (loss) reclassified from AOCI to income		-	-	(0.5)		-	-	(0.5)
Gain (loss) on derivatives in fair value hedging relationship:
Interest rate swaps
Hedged items		-	-	-		-	-	0.2
Derivatives designated as hedging instruments		-	-	-		-	-	(0.2)
Gain (loss) on derivatives not designated as hedging instruments:
Foreign currency forward contracts
Amount of gain (loss) recognized in income (a)		-	17.9	-		-	14.0	-
Total gain (loss) of all derivative instruments		$6.0	$10.6	$13.0		$9.1	$33.5	$13.8

(a) Gain (loss) on derivatives not designated as hedging instruments recognized in income recorded in SG&A includes discontinued operations of $(2.2) million and $(0.4) million in the second quarter of 2020 and 2019, respectively, and $(2.5) million and $(1.5) million for the first six months of 2020 and 2019, respectively.