NOTE 17 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The components of Accumulated OCI (“AOCI”) included in the accompanying consolidated balance sheets consist of the following:
|
|
|
Year Ended June 30 |
| |||||||
|
(In millions) |
|
2013 |
|
2012 |
|
2011 |
| |||
|
Net unrealized investment gains (losses), beginning of year |
|
$ |
0.5 |
|
$ |
0.5 |
|
$ |
0.2 |
|
|
Unrealized investment gains (losses) |
|
0.4 |
|
0.1 |
|
0.4 |
| |||
|
Benefit (provision) for deferred income taxes |
|
(0.1 |
) |
(0.1 |
) |
(0.1 |
) | |||
|
Net unrealized investment gains, end of year |
|
0.8 |
|
0.5 |
|
0.5 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Net derivative instruments, beginning of year |
|
17.4 |
|
(0.7 |
) |
14.3 |
| |||
|
Gain (loss) on derivative instruments |
|
10.3 |
|
40.2 |
|
(38.0 |
) | |||
|
Benefit (provision) for deferred income taxes on derivative instruments |
|
(3.6 |
) |
(14.3 |
) |
13.4 |
| |||
|
Reclassification to earnings during the year: |
|
|
|
|
|
|
| |||
|
Foreign currency forward contracts |
|
(8.8 |
) |
(11.7 |
) |
15.1 |
| |||
|
Settled interest rate-related derivatives |
|
(0.3 |
) |
(0.3 |
) |
(0.3 |
) | |||
|
Benefit (provision) for deferred income taxes on reclassification |
|
3.3 |
|
4.2 |
|
(5.2 |
) | |||
|
Net derivative instruments, end of year |
|
18.3 |
|
17.4 |
|
(0.7 |
) | |||
|
|
|
|
|
|
|
|
| |||
|
Net pension and post-retirement adjustments, beginning of year |
|
(293.5 |
) |
(199.0 |
) |
(217.6 |
) | |||
|
Changes in plan assets and benefit obligations: |
|
|
|
|
|
|
| |||
|
Net actuarial gains (losses) recognized |
|
92.8 |
|
(176.9 |
) |
30.7 |
| |||
|
Net prior service credit (cost) recognized |
|
— |
|
2.0 |
|
(10.6 |
) | |||
|
Translation adjustments |
|
3.5 |
|
7.6 |
|
(16.4 |
) | |||
|
Benefit (provision) for deferred income taxes |
|
(36.8 |
) |
60.4 |
|
(5.9 |
) | |||
|
Amortization of amounts included in net periodic benefit cost: |
|
|
|
|
|
|
| |||
|
Net actuarial (gains) losses |
|
28.9 |
|
14.7 |
|
26.3 |
| |||
|
Net prior service cost (credit) |
|
4.3 |
|
4.3 |
|
3.1 |
| |||
|
Net transition asset (obligation) |
|
(0.1 |
) |
— |
|
— |
| |||
|
Benefit (provision) for deferred income taxes on reclassification |
|
(12.8 |
) |
(6.6 |
) |
(8.6 |
) | |||
|
Net pension and post-retirement adjustments, end of year |
|
(213.7 |
) |
(293.5 |
) |
(199.0 |
) | |||
|
|
|
|
|
|
|
|
| |||
|
Cumulative translation adjustments, beginning of year |
|
62.7 |
|
216.9 |
|
6.4 |
| |||
|
Translation adjustments |
|
(24.5 |
) |
(156.6 |
) |
213.2 |
| |||
|
Benefit (provision) for deferred income taxes |
|
(1.1 |
) |
2.4 |
|
(2.7 |
) | |||
|
Cumulative translation adjustments, end of year |
|
37.1 |
|
62.7 |
|
216.9 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Accumulated other comprehensive income (loss) |
|
$ |
(157.5 |
) |
$ |
(212.9 |
) |
$ |
17.7 |
|
Of the $18.3 million, net of tax, derivative instrument gain recorded in AOCI at June 30, 2013, $10.9 million in gains, net of tax, related to foreign currency forward contracts, which the Company will reclassify to earnings through March 2015. Also included in the net derivative instrument gain recorded in AOCI was $7.9 million, net of tax, related to the October 2003 gain from the settlement of the treasury lock agreements upon the issuance of the Company’s 2033 Senior Notes, which is being reclassified to earnings as an offset to interest expense over the life of the debt. These gains were partially offset by $0.5 million, net of tax, related to a loss from the settlement of a series of forward-starting interest rate swap agreements upon the issuance of the Company’s 2037 Senior Notes, which is being reclassified to earnings as an addition to interest expense over the life of the debt.
Refer to Note 12 – Pension, Deferred Compensation and Post-retirement Benefit Plans for the discussion regarding the net pension and post-retirement adjustments.