Derivative Financial Instruments

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Cash Flow Hedges

Derivative financial instruments that we use to hedge forecasted transactions and anticipated cash flows are as follows:

Currency Cash Flow Hedges—The foreign currency hedges manage risk associated with exchange rate volatility of various currencies.

Interest Rate Cash Flow Hedges—We have also occasionally used interest rate cash flow hedges to manage interest rate risks. In November 2021, we issued $500.0 aggregate principal amount of notes that mature in 2051. The notes bear interest at a rate of 3.5% per year. As a part of this transaction, in the 4th quarter of 2021 we settled our $300.0 treasury locks and recognized a gain of $10.2, which will be amortized over the life of the notes.

The effective changes in fair value of unexpired contracts are recorded in accumulated other comprehensive income and reclassified to income or expense in the period in which earnings are impacted. Cash flows from settled contracts are

presented in the category consistent with the nature of the item being hedged. (Settlements associated with the sale or production of product are presented in operating cash flows, and settlements associated with debt issuance are presented in financing cash flows.)

Fair Value Hedges and Derivatives not Designated as Hedging Instruments

These derivatives typically manage foreign currency risk associated with subsidiaries’ assets and liabilities, and gains or losses are recognized currently in earnings. Cash flows from settled contracts are presented in the category consistent with the nature of the item being hedged.

The following table presents assets and liabilities representing the fair value of our most significant derivative financial instruments. The fair values of the derivatives reflect the change in the market value of the derivative from the date of the trade execution and do not consider the offsetting underlying hedged item.


	Expiring at various dates through:	Total USD Equivalent Notional Amount	As of December 31, 2021
Derivatives			Assets				Liabilities
			Other Current Assets		Sundry		Other Current Liabilities		Other Long-Term Liabilities
Designated as hedging instruments
Total cash flow hedges-currency hedges	Jun 2023	260.6	$	5.1	$	—	$	.7	$	.1
Total fair value hedges	Mar 2022	54.2	.4		—		—		—


Not designated as hedging instruments	Dec 2022	40.1	.4		—		.4		—
Total derivatives			$	5.9	$	—	$	1.1	$	.1


	Expiring at various dates through:	Total USD Equivalent Notional Amount	As of December 31, 2020
Derivatives			Assets				Liabilities
			Other Current Assets		Sundry		Other Current Liabilities		Other Long-Term Liabilities







Designated as hedging instruments
Total cash flow hedges-currency hedges	Jun 2022	223.8	$	7.0	$	.2	$	1.9	$	.3


Total fair value hedges	Jun 2021	49.5	.3		—		.1		—



Not designated as hedging instruments	Dec 2021	55.1	.4		—		.2		—
Total derivatives			$	7.7	$	.2	$	2.2	$	.3

The following table sets forth the pretax (gains) losses for our hedging activities for the years presented. This schedule includes reclassifications from accumulated other comprehensive income as well as derivative settlements recorded directly to income or expense.


	Income Statement Caption	Amount of (Gain) Loss Recorded in Income for the Year Ended December 31
Derivatives		2021		2020		2019

Designated as hedging instruments
Interest rate cash flow hedges	Interest expense	$	4.5	$	4.5	$	4.4
Currency cash flow hedges	Net trade sales	(9.6)		1.1		2.7
Currency cash flow hedges	Cost of goods sold	(.2)		(.1)		(1.6)
Currency cash flow hedges	Other (income) expense, net	—		—		.1
Total cash flow hedges		(5.3)		5.5		5.6
Fair value hedges	Other (income) expense, net	(5.9)		(.2)		.8
Not designated as hedging instruments	Other (income) expense, net	(1.9)		.2		.1







Total derivative instruments		$	(13.1)	$	5.5	$	6.5