| Absolute notional value of outstanding derivative instruments |
The absolute notional value of outstanding derivative instruments are as follows:
|
|
|
|
|
|
|
|
|
|
August 31,
2014 |
|
February 28,
2014 |
(in millions)
|
|
|
|
Derivative instruments designated as hedging instruments |
|
|
|
Foreign currency contracts |
$ |
628.3 |
|
|
$ |
636.6 |
|
Interest rate swap contracts |
$ |
500.0 |
|
|
$ |
500.0 |
|
|
|
|
|
Derivative instruments not designated as hedging instruments |
|
|
|
Foreign currency contracts |
$ |
1,000.0 |
|
|
$ |
643.8 |
|
Commodity swap contracts |
$ |
194.4 |
|
|
$ |
88.0 |
|
Interest rate swap contracts |
$ |
1,000.0 |
|
|
$ |
1,000.0 |
|
|
| Fair value and location of the Company's derivative instruments on its Consolidated Balance Sheets |
The estimated fair value and location of the Company’s derivative instruments on its Consolidated Balance Sheets are as follows (see Note 6):
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|
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|
|
|
Balance Sheet Location |
|
August 31,
2014 |
|
February 28,
2014 |
(in millions) |
|
|
|
|
Derivative instruments designated as hedging instruments |
|
|
|
|
Foreign currency contracts: |
|
|
|
|
Prepaid expenses and other |
|
$ |
9.1 |
|
|
$ |
11.2 |
|
Other accrued expenses and liabilities |
|
$ |
3.4 |
|
|
$ |
3.2 |
|
Other assets, net |
|
$ |
5.1 |
|
|
$ |
4.4 |
|
Other liabilities |
|
$ |
0.9 |
|
|
$ |
0.7 |
|
|
|
|
|
|
Interest rate swap contracts: |
|
|
|
|
Other accrued expenses and liabilities |
|
$ |
3.4 |
|
|
$ |
3.4 |
|
Other assets, net |
|
$ |
0.6 |
|
|
$ |
— |
|
Other liabilities |
|
$ |
— |
|
|
$ |
0.7 |
|
|
|
|
|
|
Derivative instruments not designated as hedging instruments |
|
|
|
|
Foreign currency contracts: |
|
|
|
|
Prepaid expenses and other |
|
$ |
2.5 |
|
|
$ |
3.3 |
|
Other accrued expenses and liabilities |
|
$ |
2.4 |
|
|
$ |
0.9 |
|
|
|
|
|
|
Commodity swap contracts: |
|
|
|
|
Prepaid expenses and other |
|
$ |
2.0 |
|
|
$ |
1.3 |
|
Other accrued expenses and liabilities |
|
$ |
4.0 |
|
|
$ |
0.1 |
|
Other assets, net |
|
$ |
2.0 |
|
|
$ |
0.2 |
|
Other liabilities |
|
$ |
2.3 |
|
|
$ |
0.4 |
|
|
|
|
|
|
Interest rate swap contracts: |
|
|
|
|
Prepaid expenses and other |
|
$ |
4.1 |
|
|
$ |
3.5 |
|
Other accrued expenses and liabilities |
|
$ |
16.4 |
|
|
$ |
13.3 |
|
Other assets, net |
|
$ |
— |
|
|
$ |
0.9 |
|
Other liabilities |
|
$ |
9.8 |
|
|
$ |
15.5 |
|
|
| Effect of the Company's derivative instruments on its Consolidated Statements of Comprehensive Income |
The effect of the Company’s derivative instruments designated in cash flow hedging relationships on its Consolidated Statements of Comprehensive Income, as well as its Other Comprehensive Income (“OCI”), net of income tax effect, is as follows:
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|
|
|
|
|
|
|
|
Derivative Instruments in
Designated Cash Flow
Hedging Relationships
|
|
Net
Gain (Loss)
Recognized
in OCI
(Effective
portion)
|
|
Location of Net Gain (Loss)
Reclassified from AOCI to
Income (Effective portion)
|
|
Net
Gain (Loss)
Reclassified
from AOCI to
Income
(Effective
portion)
|
(in millions) |
|
|
|
|
|
|
For the Six Months Ended August 31, 2014 |
|
|
|
|
|
|
Foreign currency contracts |
|
$ |
5.1 |
|
|
Sales |
|
$ |
4.2 |
|
Foreign currency contracts |
|
(0.1 |
) |
|
Cost of product sold |
|
0.5 |
|
Interest rate swap contracts |
|
(0.2 |
) |
|
Interest expense, net |
|
(4.2 |
) |
Total |
|
$ |
4.8 |
|
|
Total |
|
$ |
0.5 |
|
|
|
|
|
|
|
|
For the Six Months Ended August 31, 2013 |
|
|
|
|
|
|
Foreign currency contracts |
|
$ |
(0.2 |
) |
|
Sales |
|
$ |
1.6 |
|
Foreign currency contracts |
|
(1.8 |
) |
|
Cost of product sold |
|
0.2 |
|
Interest rate swap contracts |
|
2.6 |
|
|
Interest expense, net |
|
(4.1 |
) |
Total |
|
$ |
0.6 |
|
|
Total |
|
$ |
(2.3 |
) |
|
|
|
|
|
|
|
For the Three Months Ended August 31, 2014 |
|
|
|
|
|
|
Foreign currency contracts |
|
$ |
(4.8 |
) |
|
Sales |
|
$ |
3.0 |
|
Foreign currency contracts |
|
(0.5 |
) |
|
Cost of product sold |
|
0.2 |
|
Interest rate swap contracts |
|
0.3 |
|
|
Interest expense, net |
|
(2.2 |
) |
Total |
|
$ |
(5.0 |
) |
|
Total |
|
$ |
1.0 |
|
|
|
|
|
|
|
|
For the Three Months Ended August 31, 2013 |
|
|
|
|
|
|
Foreign currency contracts |
|
$ |
0.3 |
|
|
Sales |
|
$ |
0.7 |
|
Foreign currency contracts |
|
(0.6 |
) |
|
Cost of product sold |
|
— |
|
Interest rate swap contracts |
|
1.4 |
|
|
Interest expense, net |
|
(2.0 |
) |
Total |
|
$ |
1.1 |
|
|
Total |
|
$ |
(1.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
Derivative Instruments in
Designated Cash Flow
Hedging Relationships
|
|
|
|
Location of Net Gain
Recognized in Income
(Ineffective portion)
|
|
Net Gain
Recognized
in Income
(Ineffective
portion)
|
(in millions) |
|
|
|
|
|
|
For the Six Months Ended August 31, 2014 |
|
|
|
|
|
|
Foreign currency contracts |
|
|
|
Selling, general and administrative expenses |
|
$ |
0.2 |
|
|
|
|
|
|
|
|
For the Six Months Ended August 31, 2013 |
|
|
|
|
|
|
Foreign currency contracts |
|
|
|
Selling, general and administrative expenses |
|
$ |
0.2 |
|
Commodity swap contracts |
|
|
|
Selling, general and administrative expenses |
|
0.1 |
|
|
|
|
|
|
|
$ |
0.3 |
|
|
|
|
|
|
|
|
For the Three Months Ended August 31, 2014 |
|
|
|
|
|
|
Foreign currency contracts |
|
|
|
Selling, general and administrative expenses |
|
$ |
0.3 |
|
|
|
|
|
|
|
|
For the Three Months Ended August 31, 2013 |
|
|
|
|
|
|
Foreign currency contracts |
|
|
|
Selling, general and administrative expenses |
|
$ |
0.1 |
|
The effect of the Company’s undesignated derivative instruments on its Consolidated Statements of Comprehensive Income is as follows:
|
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|
|
|
|
|
|
|
|
|
Derivative Instruments Not
Designated as Hedging Instruments
|
|
|
|
Location of Net (Loss) Gain
Recognized in Income
|
|
Net
(Loss) Gain
Recognized
in Income
|
(in millions) |
|
|
|
|
|
|
For the Six Months Ended August 31, 2014 |
|
|
|
|
|
|
Commodity swap contracts |
|
|
|
Cost of product sold |
|
$ |
(2.6 |
) |
Foreign currency contracts |
|
|
|
Selling, general and administrative expenses |
|
(7.2 |
) |
|
|
|
|
|
|
$ |
(9.8 |
) |
|
|
|
|
|
|
|
For the Six Months Ended August 31, 2013 |
|
|
|
|
|
|
Foreign currency contracts |
|
|
|
Selling, general and administrative expenses |
|
$ |
(2.6 |
) |
Commodity swap contracts |
|
|
|
Selling, general and administrative expenses |
|
1.6 |
|
|
|
|
|
|
|
$ |
(1.0 |
) |
|
|
|
|
|
|
|
For the Three Months Ended August 31, 2014 |
|
|
|
|
|
|
Commodity swap contracts |
|
|
|
Cost of product sold |
|
$ |
(2.8 |
) |
Foreign currency contracts |
|
|
|
Selling, general and administrative expenses |
|
(1.5 |
) |
|
|
|
|
|
|
$ |
(4.3 |
) |
|
|
|
|
|
|
|
For the Three Months Ended August 31, 2013 |
|
|
|
|
|
|
Foreign currency contracts |
|
|
|
Selling, general and administrative expenses |
|
$ |
(0.6 |
) |
Commodity swap contracts |
|
|
|
Selling, general and administrative expenses |
|
2.6 |
|
|
|
|
|
|
|
$ |
2.0 |
|
|