Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.23.2
Derivative Instruments (Tables)
 3 Months Ended
May 31, 2023
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,
2023		 February 28,
2023
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts $ 1,880.5  $ 1,969.5 
Derivative instruments not designated as hedging instruments
Foreign currency contracts $ 669.7  $ 831.7 
Commodity derivative contracts $ 392.1  $ 416.5 
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 4):
Assets Liabilities
May 31,
2023		 February 28,
2023		 May 31,
2023		 February 28,
2023
(in millions)
Derivative instruments designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other $ 134.6  $ 109.1  Other accrued expenses and liabilities $ 9.3  $ 9.8 
Other assets $ 163.7  $ 134.5  Deferred income taxes and other liabilities $ 3.4  $ 3.5 
Derivative instruments not designated as hedging instruments
Foreign currency contracts:
Prepaid expenses and other $ 4.3  $ 5.9  Other accrued expenses and liabilities $ 2.9  $ 3.9 
Commodity derivative contracts:
Prepaid expenses and other $ 8.7  $ 21.2  Other accrued expenses and liabilities $ 32.0  $ 19.5 
Other assets $ 1.5  $ 4.6  Deferred income taxes and other liabilities $ 13.5  $ 8.3 
Effect of derivative instruments on our results of operations and OCI
The principal effect of our derivative instruments designated in cash flow hedging relationships on our results of operations, as well as 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, 2023
Foreign currency contracts $ 79.3  Sales $ — 
Cost of product sold 26.4 
Pre-issuance hedge contracts 0.6  Interest expense (0.2)
$ 79.9  $ 26.2 
For the Three Months Ended May 31, 2022
Foreign currency contracts $ 79.5  Sales $ (0.6)
Cost of product sold 11.1 
Pre-issuance hedge contracts 15.7  Interest expense (0.5)
$ 95.2  $ 10.0 
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, 2023
Commodity derivative contracts Cost of product sold $ (34.7)
Foreign currency contracts Selling, general, and administrative expenses 12.7 
$ (22.0)
For the Three Months Ended May 31, 2022
Commodity derivative contracts Cost of product sold $ 48.5 
Foreign currency contracts Selling, general, and administrative expenses 6.2 
$ 54.7