6. DERIVATIVES AND RISK MANAGEMENT

DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, we are exposed to market risk associated with changes in foreign currency exchange rates and interest rates. To manage a portion of these inherent risks, we may purchase certain types of derivative financial instruments based on management's judgment of the trade-off between risk, opportunity and cost. We do not hold or issue derivative financial instruments for trading or speculative purposes. The ineffective portion of any hedge is included in current earnings. The impact of hedge ineffectiveness was not significant in any of the periods presented.

CURRENCY DERIVATIVE CONTRACTS From time to time, we use foreign currency forward and option contracts to reduce the effects of fluctuations in exchange rates relating to the Mexican Peso, Euro, Brazilian Real, British Pound Sterling, Thai Baht, Swedish Krona, Chinese Yuan, Polish Zloty and Indian Rupee. We had currency forward and option contracts outstanding with a notional amount of $162.2 million and $156.0 million at December 31, 2017 and 2016, respectively, that hedge our exposure to changes in foreign currency exchange rates for certain payroll expenses into the second quarter of 2020 and the purchase of certain direct and indirect inventory and other working capital items into the third quarter of 2018.

VARIABLE-TO-FIXED INTEREST RATE SWAP In the second quarter of 2017, we entered into a variable-to-fixed interest rate swap to reduce the variability of cash flows associated with interest payments on a variable rate debt. As of December 31, 2017, we have the following notional amounts hedged in relation to our variable-to-fixed interest rate swap: $750.0 million through May 2018, $600.0 million through May 2019, $450.0 million through May 2020 and $200.0 million through May 2021.

The following table summarizes the reclassification of pre-tax derivative gains (losses) into net income from accumulated other comprehensive income (loss) for those derivative instruments designated as cash flow hedges under Accounting Standards Codification 815 - Derivatives and Hedging (ASC 815):



	Location of Gain (Loss) Reclassified into Net Income	Loss Reclassified During the Twelve Months Ended December 31,									Gain/(Loss) Expected to be Reclassified During the Next 12 Months
	Location of Gain (Loss) Reclassified into Net Income	2017			2016			2015
		(in millions)
Currency forward contracts	Cost of Goods Sold	$	(5.3	)	$	(10.5	)	$	(10.9	)	$	(6.0	)
Variable-to-fixed interest rate swap	Interest Expense	—			—			—			0.7

See Note 13 - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) for amounts recognized in other comprehensive income (loss) during the years ended December 31, 2017, December 31, 2016 and December 31, 2015.

The following table summarizes the amount and location of gains (losses) recognized in the Consolidated Statement of Income for those derivative instruments not designated as hedging instruments under ASC 815:



	Location of Gain/(Loss) Recognized in Net Income	Gain/(Loss) Recognized During the Twelve Months Ended December 31,
	Location of Gain/(Loss) Recognized in Net Income	2017			2016			2015
		(in millions)
Currency forward contracts	Cost of Goods Sold	$	2.7		$	(5.8	)	$	(4.0	)
Currency forward contracts	Other Income (Expense), Net	(0.1		)	(0.7		)	(1.6		)
Currency option contracts	Cost of Goods Sold	0.8			—			—

CONCENTRATIONS OF CREDIT RISK In the normal course of business, we provide credit to customers. We periodically evaluate the creditworthiness of our customers and we maintain reserves for potential credit losses.

Sales to GM were approximately 47% of our consolidated net sales in 2017, 67% in 2016, and 66% in 2015. Accounts and other receivables due from GM were $466.8 million at year-end 2017 and $369.1 million at year-end 2016. Sales to FCA US LLC (FCA), were approximately 14% of our consolidated net sales in 2017, 18% in 2016 and 20% in 2015. Accounts and other receivables due from FCA were $129.0 million at year-end 2017 and $87.3 million at year-end 2016. No other single customer accounted for more than 10% of our consolidated net sales in any year presented.

In addition, our total GM postretirement cost sharing asset was $265.5 million as of December 31, 2017 and $249.0 million as of December 31, 2016. See Note 8 - Employee Benefit Plans for more detail on this cost sharing asset.

We diversify the concentration of invested cash and cash equivalents among different financial institutions and we monitor the selection of counterparties to other financial instruments to avoid unnecessary concentrations of credit risk.