The following table summarizes the pretax impact of derivative instruments designated as cash flow hedges on the accompanying Condensed Consolidated Statements of Operations, and within AOCI, for the three and nine months ended June 30, 2013 and July 1, 2012:
| | | | | | | | | | | | | | | | | | | | Derivatives in Cash Flow Hedging Relationships | | Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | | Classification | | | June 30,
2013 | | July 1,
2012 | | June 30,
2013 | | July 1,
2012 | | | Three months ended | | | | | | | | | | | Commodity contracts | | $ | (1.0 | ) | | $ | (2.4 | ) | | $ | (0.3 | ) | | $ | (0.2 | ) | | Consumer products cost of goods sold | Interest rate contracts | | — |
| | — |
| | — |
| | — |
| | Interest expense | Foreign exchange contracts | | 0.2 |
| | (0.4 | ) | | 0.4 |
| | (0.1 | ) | | Net consumer products sales | Foreign exchange contracts | | 4.0 |
| | 5.9 |
| | 0.5 |
| | 0.6 |
| | Consumer products cost of goods sold | Total | | $ | 3.2 |
| | $ | 3.1 |
| | $ | 0.6 |
| | $ | 0.3 |
| | | Nine months ended | | | | | | | | | | | Commodity contracts | | $ | (3.4 | ) | | $ | (2.0 | ) | | $ | (0.2 | ) | | $ | (0.7 | ) | | Consumer products cost of goods sold | Interest rate contracts | | — |
| | — |
| | — |
| | (0.9 | ) | | Interest expense | Foreign exchange contracts | | 0.8 |
| | (0.1 | ) | | 0.7 |
| | (0.3 | ) | | Net consumer products sales | Foreign exchange contracts | | 7.2 |
| | 2.4 |
| | (0.4 | ) | | (1.3 | ) | | Consumer products cost of goods sold | Total | | $ | 4.6 |
| | $ | 0.3 |
| | $ | 0.1 |
| | $ | (3.2 | ) | | |
Fair Value Contracts and Other For derivative instruments that are used to economically hedge the fair value of Spectrum Brands’ third party and intercompany foreign currency payments, commodity purchases and interest rate payments, and the equity conversion feature of the Company’s Preferred Stock, the gain (loss) associated with the derivative contract is recognized in earnings in the period of change. FGL recognizes all derivative instruments as assets or liabilities in the Condensed Consolidated Balance Sheets at fair value, including derivative instruments embedded in Fixed Indexed Annuity ("FIA") contracts, and any changes in the fair value of the derivatives are recognized immediately in the Condensed Consolidated Statements of Operations. During the three and nine months ended June 30, 2013 and July 1, 2012 the Company recognized the following gains (losses) on these derivatives:
| | | | | | | | | | | | | | | | | | | | Derivatives Not Designated as Hedging Instruments | | Gain (Loss) Recognized in Income on Derivatives | | Classification | | | Three months ended | | Nine months ended | | | | | June 30, 2013 | | July 1,
2012 | | June 30, 2013 | | July 1,
2012 | | | Equity conversion feature of preferred stock | | $ | 52.6 |
| | $ | (125.5 | ) | | $ | 81.9 |
| | $ | (124.0 | ) | | Gain (loss) from the change in the fair value of the equity conversion feature of preferred stock | Oil and natural gas commodity contracts | | 9.6 |
| | — |
| | 0.8 |
| | — |
| | Other income (expense), net | Commodity contracts | | (0.2 | ) | | — |
| | (0.2 | ) | | — |
| | Consumer products cost of goods sold | Foreign exchange contracts | | 0.5 |
| | 7.9 |
| | (1.8 | ) | | 11.7 |
| | Other income (expense), net | Call options | | 16.5 |
| | (44.6 | ) | | 114.1 |
| | 48.7 |
| | Net investment gains (losses) | Futures contracts | | 3.5 |
| | (6.6 | ) | | 12.5 |
| | 33.9 |
| | Net investment gains (losses) | Available-for-sale embedded derivatives | | — |
| | 0.4 |
| | — |
| | 0.4 |
| | Net investment income | FIA embedded derivatives
| | 53.7 |
| | 10.3 |
| | (35.1 | ) | | (90.1 | ) | | Benefits and other changes in policy reserves | Total | | $ | 136.2 |
| | $ | (158.1 | ) | | $ | 172.2 |
| | $ | (119.4 | ) | | |
|
