Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Notional Amount of All Foreign Exchange Contracts and Interest Rate Swaps Outstanding

The U.S. dollar equivalent notional amount of all of our foreign exchange contracts and interest rate swaps outstanding at September 30, 2013 and December 31, 2012 are as follows (in millions):

	Notional Amount
	September 30, 2013		December 31, 2012
Type of hedge
Cash flow – foreign exchange contracts	$	113.1	$	64.6
Fair value – foreign exchange contracts		365.7		189.2
Fair value – interest rate contracts		350.0		200.0
Undesignated hedge – cross currency interest rate swap		81.2		—

Fair Values of Derivative Instruments on Consolidated Balance Sheet

The fair values of derivative instruments on the unaudited condensed consolidated balance sheet as of September 30, 2013 and December 31, 2012 are as follows (in millions):

		Fair Value
	Balance Sheet Classification	September 30, 2013		December 31, 2012
Derivatives designated as hedges:
Assets
Foreign exchange contracts	Other current assets	$	5.0	$	2.8
Interest rate contracts	Other non-current assets		2.4		3.2
Liabilities
Foreign exchange contracts	Other current liabilities	$	4.3	$	3.0
Derivatives not designated as hedges:
Liabilities
Cross currency interest rate swap	Other current liabilities	$	0.3	$	—

Effects of Derivative Financial Instruments on the Statement of Income and OCI

The effects of derivative financial instruments on the unaudited condensed consolidated statements of income and comprehensive income for the three months ended September 30, 2013 and 2012 are as follows (in millions):

	Gain (Loss)
	Recognized in OCI (Effective Portion)						Recognized in Income
	2013			2012			Location of Gain (Loss) Recognized in Income	2013			2012
Derivatives designated as hedges:
Cash flow — foreign exchange contracts	$	(3.0	)	$	(1.2	)	Net sales	$	2.8		$	(1.2	)
Fair value — interest rate contracts		n/a			n/a		Interest expense		3.8			2.2
Fair value — foreign exchange contracts		n/a			n/a		Other income		(3.7	)		2.7
Total	$	(3.0	)	$	(1.2	)		$	2.9		$	3.7
Derivatives not designated as hedges:
Economic hedge — cross currency interest rate swap		n/a			n/a		Other income	$	(3.0	)	$	—

The effects of derivative financial instruments on the unaudited condensed consolidated statements of income and comprehensive income for the nine months ended September 30, 2013 and 2012 are as follows (in millions):

	Gain (Loss)
	Recognized in OCI (Effective Portion)					Recognized in Income
	2013		2012			Location of Gain (Loss) Recognized in Income	2013			2012
Derivatives designated as hedges:
Cash flow — foreign exchange contracts	$	5.1	$	(3.3	)	Net sales	$	3.9		$	(2.4	)
Cash flow — interest rate contracts		—		—		Loss on early extinguishment of debt		3.1			—
Fair value — interest rate contracts		n/a		n/a		Interest expense		1.3			3.7
Fair value — foreign exchange contracts		n/a		n/a		Other income		(0.2	)		2.5
Total	$	5.1	$	(3.3	)		$	8.1		$	3.8
Derivatives not designated as hedges:
Economic hedge — cross currency interest rate swap		n/a		n/a		Other income	$	(0.4	)	$	—