Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.20.2
Derivative Instruments (Tables)
 3 Months Ended
May 31, 2020
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:
May 31,
2020		 February 29,
2020
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts $ 1,668.4    $ 1,831.0   
Interest rate swap contracts $ 375.0    $ 375.0   
Treasury lock contracts $ —    $ 300.0   
Derivative instruments not designated as hedging instruments
Foreign currency contracts $ 323.0    $ 1,180.2   
Commodity derivative contracts $ 268.3    $ 282.8   
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 5):
Assets Liabilities
May 31,
2020		 February 29,
2020		 May 31,
2020		 February 29,
2020
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other $ 1.2    $ 47.8    Other accrued expenses and liabilities $ 50.8    $ 13.0   
Other assets $ 5.4    $ 39.5    Deferred income taxes and other liabilities $ 58.1    $ 7.1   
Interest rate swap contracts:
Prepaid expenses and other $ —    $ —    Other accrued expenses and liabilities $ 0.6    $ 0.8   
Treasury lock contracts:
Prepaid expenses and other $ —    $ —    Other accrued expenses and liabilities $ —    $ 7.6   
Derivative instruments not designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other $ 4.6    $ 9.0    Other accrued expenses and liabilities $ 4.3    $ 14.3   
Commodity derivative contracts:
Prepaid expenses and other $ 0.9    $ 0.5    Other accrued expenses and liabilities $ 35.8    $ 25.4   
Other assets $ 0.7    $ 0.1    Deferred income taxes and other liabilities $ 22.0    $ 15.5   
Effect of derivative instruments on our results of operations
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 Three Months Ended May 31, 2020
Foreign currency contracts $ (193.4)   Sales $ 0.4   
Cost of product sold (8.5)  
Interest rate swap contracts (0.3)   Interest expense (0.4)  
Treasury lock contracts (16.1)   Interest expense —   
$ (209.8)   $ (8.5)  
For the Three Months Ended May 31, 2019
Foreign currency contracts $ (2.4)   Sales $ —   
Cost of product sold 3.6   
$ (2.4)   $ 3.6   
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 Three Months Ended May 31, 2020   
Commodity derivative contracts Cost of product sold $ (26.8)  
Foreign currency contracts Selling, general, and administrative expenses (25.9)  
$ (52.7)  
For the Three Months Ended May 31, 2019   
Commodity derivative contracts Cost of product sold $ (15.9)  
Foreign currency contracts Selling, general, and administrative expenses (3.8)  
$ (19.7)