Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.19.3
Derivative Instruments (Tables)
 6 Months Ended
Aug. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Aggregate notional value of outstanding derivative instruments
The aggregate notional value of outstanding derivative instruments is as follows:
 
August 31,
2019
 
February 28,
2019
(in millions)
 
 
 
Derivative instruments designated as hedging instruments
 
 
 
Foreign currency contracts
$
1,959.9

 
$
1,579.3

Interest rate swap contracts
$
375.0

 
$
—

 
 
 
 
Derivative instruments not designated as hedging instruments
 
 
 
Foreign currency contracts
$
781.2

 
$
460.3

Commodity derivative contracts
$
265.1

 
$
284.7


Fair value and location of derivative instruments on our balance sheets
The estimated fair value and location of our derivative instruments on our balance sheets are as follows (see Note 6):
Assets
 
Liabilities
 
August 31,
2019
 
February 28,
2019
 
 
August 31,
2019
 
February 28,
2019
(in millions)
 
 
 
 
 
 
 
 
Derivative instruments designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other
$
9.6

 
$
14.1

 
Other accrued expenses and liabilities
$
24.0

 
$
8.8

Other assets
$
11.6

 
$
22.1

 
Deferred income taxes and other liabilities
$
18.6

 
$
6.3

Interest rate swap contracts:
Prepaid expenses and other
$
0.1

 
$
—

 
Other accrued expenses and liabilities
$
0.8

 
$
—

 
 
 
 
 
 
 
 
 
Derivative instruments not designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other
$
4.5

 
$
2.0

 
Other accrued expenses and liabilities
$
11.0

 
$
0.6

Commodity derivative contracts:
Prepaid expenses and other
$
1.2

 
$
6.1

 
Other accrued expenses and liabilities
$
15.6

 
$
6.1

Other assets
$
0.3

 
$
2.6

 
Deferred income taxes and other liabilities
$
10.7

 
$
5.5


Effect of derivative instruments on our results of operations
The effect of our undesignated derivative instruments on our results of operations is as follows:
Derivative Instruments Not
Designated as Hedging Instruments
 
 
 
Location of Net Gain (Loss)
Recognized in Income (Loss)
 
Net
Gain (Loss)
Recognized
in Income (Loss)
(in millions)
 
 
 
 
 
 
For the Six Months Ended August 31, 2019
 
 
 
 
 
 
Commodity derivative contracts
 
 
 
Cost of product sold
 
$
(26.8
)
Foreign currency contracts
 
 
 
Selling, general, and administrative expenses
 
(8.9
)
 
 
 
 
 
 
$
(35.7
)
 
 
 
 
 
 
 
For the Six Months Ended August 31, 2018
 
 
 
 
 
 
Commodity derivative contracts
 
 
 
Cost of product sold
 
$
9.6

Foreign currency contracts
 
 
 
Selling, general, and administrative expenses
 
(28.1
)
Interest rate swap contracts
 
 
 
Interest expense
 
2.7

 
 
 
 
 
 
$
(15.8
)
 
 
 
 
 
 
 
For the Three Months Ended August 31, 2019
 
 
 
 
 
 
Commodity derivative contracts
 
 
 
Cost of product sold
 
$
(10.9
)
Foreign currency contracts
 
 
 
Selling, general and administrative expenses
 
(5.1
)
 
 
 
 
 
 
$
(16.0
)
 
 
 
 
 
 
 
For the Three Months Ended August 31, 2018
 
 
 
 
 
 
Commodity derivative contracts
 
 
 
Cost of product sold
 
$
(5.8
)
Foreign currency contracts
 
 
 
Selling, general and administrative expenses
 
(26.2
)
Interest rate swap contracts
 
 
 
Interest expense
 
2.7

 
 
 
 
 
 
$
(29.3
)

The principal effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, as well as Other Comprehensive Income (Loss) (“OCI”), net of income tax effect, is as follows:
Derivative Instruments in
Designated Cash Flow
Hedging Relationships
 
Net
Gain (Loss)
Recognized
in OCI
 
Location of Net Gain (Loss)
Reclassified from
AOCI to Income (Loss)
 
Net
Gain (Loss)
Reclassified
from AOCI
to Income (Loss)
(in millions)
 
 
 
 
 
 
For the Six Months Ended August 31, 2019
 
 
 
 
 
 
Foreign currency contracts
 
$
(35.6
)
 
Sales
 
$
—

 
 
 
 
Cost of product sold
 
7.8

Interest rate swap contracts
 
(0.6
)
 
Interest expense
 
—

 
 
$
(36.2
)
 
 
 
$
7.8

 
 
 
 
 
 
 
For the Six Months Ended August 31, 2018
 
 
 
 
 
 
Foreign currency contracts
 
$
(7.0
)
 
Sales
 
$
0.1

 
 
 
 
Cost of product sold
 
4.7

 
 
$
(7.0
)
 
 
 
$
4.8

 
 
 
 
 
 
 
Derivative Instruments in
Designated Cash Flow
Hedging Relationships
 
Net
Gain (Loss)
Recognized
in OCI
 
Location of Net Gain (Loss)
Reclassified from
AOCI to Income (Loss)
 
Net
Gain (Loss)
Reclassified
from AOCI
to Income (Loss)
(in millions)
 
 
 
 
 
 
For the Three Months Ended August 31, 2019
 
 
 
 
 
 
Foreign currency contracts
 
$
(33.2
)
 
Sales
 
$
—

 
 
 
 
Cost of product sold
 
4.2

Interest rate swap contracts
 
(0.6
)
 
Interest expense
 
—

 
 
$
(33.8
)
 
 
 
$
4.2

 
 
 
 
 
 
 
For the Three Months Ended August 31, 2018
 
 
 
 
 
 
Foreign currency contracts
 
$
37.9

 
Sales
 
$
—

 
 
 
 
Cost of product sold
 
0.6

 
 
$
37.9

 
 
 
$
0.6