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Financial Instruments and Risk Management (Tables)
 9 Months Ended
Sep. 30, 2015
Financial Instruments and Risk Management  
Schedule of fair value of derivative instruments

 

 

 

September 30, 2015

 

December 31, 2014

 

($ in millions)

 

Derivatives
Designated
as Hedging
Instruments

 

Derivatives not
Designated as
Hedging
Instruments

 

Total

 

Derivatives
Designated
as Hedging
Instruments

 

Derivatives not
Designated as
Hedging
Instruments

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

$
5.7 

 

$
4.7 

 

$
10.4 

 

$
3.8 

 

$
1.3 

 

$
5.1 

 

Foreign currency contracts

 
0.1 

 
13.1 

 
13.2 

 
0.8 

 
3.5 

 
4.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current derivative contracts

 

$
5.8 

 

$
17.8 

 

$
23.6 

 

$
4.6 

 

$
4.8 

 

$
9.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

$
0.2 

 

$
0.8 

 

$
1.0 

 

$
2.2 

 

$
0.5 

 

$
2.7 

 

Foreign currency contracts

 

—

 

—

 

—

 

—

 

—

 

—

 

Interest rate and other contracts

 

—

 
1.5 

 
1.5 

 
0.4 

 

—

 
0.4 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noncurrent derivative contracts

 

$
0.2 

 

$
2.3 

 

$
2.5 

 

$
2.6 

 

$
0.5 

 

$
3.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

$
14.0 

 

$
6.5 

 

$
20.5 

 

$
6.9 

 

$
1.6 

 

$
8.5 

 

Foreign currency contracts

 
2.2 

 
29.2 

 
31.4 

 
1.6 

 
1.3 

 
2.9 

 

Interest rate and other contracts

 
0.5 

 
4.7 

 
5.2 

 
0.5 

 
0.4 

 
0.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current derivative contracts

 

$
16.7 

 

$
40.4 

 

$
57.1 

 

$
9.0 

 

$
3.3 

 

$
12.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

$
7.8 

 

$
1.5 

 

$
9.3 

 

$
6.8 

 

$
0.5 

 

$
7.3 

 

Interest rate and other contracts

 
0.4 

 
9.2 

 
9.6 

 
0.3 

 

—

 
0.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noncurrent derivative contracts

 

$
8.2 

 

$
10.7 

 

$
18.9 

 

$
7.1 

 

$
0.5 

 

$
7.6 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of impact on earnings from derivative instruments

 

 

 

 

 

Three Months Ended September 30,

 

 

 

 

 

2015

 

2014

 

($ in millions)

 

Location of Gain (Loss)
Recognized in Earnings
on Derivatives

 

Cash Flow
Hedge -
Reclassified
Amount from
Accumulated
Other
Comprehensive
Earnings (Loss)

 

Gain (Loss) on
Derivatives not
Designated as
Hedge
Instruments

 

Cash Flow
Hedge -
Reclassified
Amount from
Accumulated
Other
Comprehensive
Earnings (Loss)

 

Gain (Loss) on
Derivatives not
Designated as
Hedge
Instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts - manage exposure to customer pricing

 

Net sales

 

$
1.3

 

$
0.2

 

$
(2.5

)

$
3.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts - manage exposure to supplier pricing

 

Cost of sales

 
(8.4

)
(2.1

)
(20.2

)
1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts - manage exposure for outstanding debt

 

Interest expense

 

—

 

—

 
0.1

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts - manage exposure for forecasted Rexam financing

 

Debt refinancing and other costs

 

—

 
(15.0

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts - manage exposure to sales of products

 

Cost of sales

 
0.3

 
1.6

 

—

 
(0.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts - manage exposure for transactions between segments

 

Selling, general and administrative

 

—

 
17.0

 
(0.1

)
(13.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts - manage exposure for proposed acquisition of Rexam

 

Business consolidation and other activities

 

—

 
(104.6

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity contracts

 

Selling, general and administrative

 

—

 
(8.2

)

—

 
(3.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

$
(6.8

)

$
(111.1

)

$
(22.7

)

$
(13.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

2015

 

2014

 

($ in millions)

 

Location of Gain (Loss)
Recognized in Earnings
on Derivatives

 

Cash Flow
Hedge -
Reclassified
Amount From
Other
Comprehensive
Earnings (Loss)

 

Gain (Loss) on
Derivatives Not
Designated As
Hedge
Instruments

 

Cash Flow
Hedge -
Reclassified
Amount From
Other
Comprehensive
Earnings (Loss)

 

Gain (Loss) on
Derivatives Not
Designated As
Hedge
Instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts - manage exposure to customer pricing

 

Net sales

 

$
2.1

 

$
0.9

 

$
(3.0

)

$
3.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts - manage exposure to supplier pricing

 

Cost of sales

 
(10.6

)
(4.8

)
(34.4

)
2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts - manage exposure for outstanding debt

 

Interest expense

 
(0.1

)

—

 
(0.2

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts - manage exposure for forecasted Rexam financing

 

Debt refinancing and other costs

 

—

 
(10.0

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts - manage exposure to sales of products

 

Cost of sales

 
(0.2

)
2.2

 
0.2

 
(0.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts - manage exposure for transactions between segments

 

Selling, general and administrative

 

—

 
(4.4

)

—

 
(19.3

)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency contracts - manage exposure for proposed acquisition of Rexam

 

Business consolidation and other activities

 

—

 
(36.3

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity contracts

 

Selling, general and administrative

 

—

 
(6.4

)

—

 
(3.9

)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

$
(8.8

)

$
(58.8

)

$
(37.4

)

$
(17.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of changes in accumulated other comprehensive earnings (loss) for effective derivatives

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

($ in millions)

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

Amounts reclassified into earnings:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

$
7.1

 

$
22.7

 

$
8.5

 

$
37.4

 

Interest rate contracts

 

—

 
(0.1

)
0.1

 
0.2

 

Currency exchange contracts

 
(0.3

)
0.1

 
0.2

 
(0.2

)

Change in fair value of cash flow hedges:

 

 

 

 

 

 

 

 

 

Commodity contracts

 
(11.9

)
1.4

 
(22.9

)
8.1

 

Interest rate contracts

 
(0.3

)
0.2

 
(0.6

)
(0.2

)

Currency exchange contracts

 
4.1

 
(0.7

)
(1.9

)
(1.9

)

Foreign currency and tax impacts

 
(1.0

)
(2.0

)
2.3

 
(5.3

)

 

 

 

 

 

 

 

 

 

 

 

 

$
(2.3

)

$
21.6

 

$
(14.3

)

$
38.1