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98 THE EST{E LAUDER COMPANIES INC.
The fair values of the Company’s derivative financial instruments included in the consolidated balance sheets are
pre sented as follows:
Asset Derivatives Liability Derivatives
Balance Sheet Location Fair Value(1) Balance Sheet Location Fair Value(1)
June 30 June 30
2015 2014 2015 2014
(In millions)
Derivatives Designated as
Hedging Instruments
:
Prepaid expenses and
Foreign currency forward contracts
other current assets $41.1 $3.4
Other accrued liabilities
$4.2 $18.2
Interest rate swap contracts
Not applicable — —
Other accrued liabilities
0.2 —
Total Derivatives Designated
as Hedging Instruments
41.1 3.4
4.4 18.2
Derivatives Not Designated as
Hedging Instruments:
Prepaid expenses and
Foreign currency forward contracts
other current assets 2.0 0.8 Other accrued liabilities 4.1 0.9
Total Derivatives $43.1 $4.2 $8.5 $19.1
(1) See Note 12— Fair Value Measurements for further information about how the fair value of derivative assets and liabilities are determined.
The amounts of the gains and losses related to the Company’s derivative financial instruments designated as hedging
instruments are presented as follows:
Amount of Gain or (Loss)
Recognized in OCI Location of Gain or (Loss) Amount of Gain or (Loss)
on Derivatives
Reclassified from AOCI into
Reclassified from AOCI into
(Effective Portion)
Earnings (Effective Portion)
Earnings (Effective Portion)(1)
June 30 June 30
2015 2014 2015 2014
(In millions)
Derivatives in Cash Flow
Hedging Relationships:
Foreign currency forward contracts
$ 90.3 $(22.2) Cost of sales $ 9.1 $4.5
Selling, general and administrative
28.7 2.7
Settled interest rate-related
derivatives
17.5 — Interest expense 0.4 0.3
Total derivatives $107.8 $(22.2) $38.2 $7.5
(1) The amount of gain (loss) recognized in earnings related to the amount excluded from effectiveness testing was $(1.5) million and $0.4 million for fiscal
2015 and 2014, respectively. The gain (loss) recognized in earnings related to the ineffective portion of the hedging relationships was $1.8 million and
$(0.5) million for fiscal 2015 and 2014, respectively.