Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis.

	March 31, 2018
				Fair Value Measurements
Description	Nominal volume			Derivative asset			Derivative liability			Balance sheet location
Derivatives designated as hedging instruments
Foreign exchange forward contracts, less than 1 year (cash flow hedge)	$	—		$	—		$	—		Other current assets/ Other current liabilities
Total derivatives designated as hedging instruments	$	—		$	—		$	—
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	671.7	¹⁾	$	4.4	²⁾	$	3.5	³⁾	Other current assets/ Other current liabilities
Total derivatives not designated as hedging instruments	$	671.7		$	4.4		$	3.5

¹⁾	Net nominal amount after deducting for offsetting swaps under ISDA agreements is $655.4 million.

²⁾	Net amount after deducting for offsetting swaps under ISDA agreements is $4.3 million.

³⁾	Net amount after deducting for offsetting swaps under ISDA agreements is $3.4 million.

	December 31, 2017
				Fair Value Measurements
Description	Nominal volume			Derivative asset			Derivative liability			Balance sheet location
Derivatives designated as hedging instruments ¹⁾
Foreign exchange forward contracts, less than 1 year (cash flow hedge)	$	66.6		$	0.4		$	1.3		Other current assets/ Other current liabilities
Foreign exchange forward contracts, less than 2 years (cash flow hedge)		—			—			—		Other non-current assets/ Other non-current liabilities
Total derivatives designated as hedging instruments	$	66.6		$	0.4		$	1.3
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	468.2	²⁾	$	2.4	³⁾	$	0.3	⁴⁾	Other current assets/ Other current liabilities
Total derivatives not designated as hedging instruments	$	468.2		$	2.4		$	0.3

¹⁾	There is no netting since there are no offsetting contracts.

²⁾	Net nominal amount after deducting for offsetting swaps under ISDA agreements is $468.2 million.

³⁾	Net amount after deducting for offsetting swaps under ISDA agreements is $2.4 million.

⁴⁾	Net amount after deducting for offsetting swaps under ISDA agreements is $0.3 million.

Fair Value of Debt

	March 31,		March 31,		December 31,		December 31,
	2018		2018		2017		2017
	Carrying		Fair		Carrying		Fair
Long-term debt	value¹⁾		value		value¹⁾		value
U.S. Private placement	$	1,310.1	$	1,365.1	$	1,310.5	$	1,379.9
Other long-term debt		15.1		15.1		11.2		11.2
Total	$	1,325.2	$	1,380.2	$	1,321.7	$	1,391.1
Short-term debt
Overdrafts and other short-term debt	$	58.7	$	58.7	$	19.5	$	19.5
Short-term portion of long-term debt		25.3		25.3		0.2		0.2
Total	$	84.0	$	84.0	$	19.7	$	19.7

¹⁾	Debt as reported in balance sheet.

Long-lived Assets Measured at Fair Value (Level 3) on a Nonrecurring Basis

The tables below present information about certain of the Company’s long-lived assets measured at fair value (level 3) on a nonrecurring basis.

	March 31, 2018				December 31, 2017
(Dollars in millions)	Fair value measurements Level 3		Impairment losses		Fair value measurements Level 3		Impairment losses
Goodwill ¹⁾	$	1,691.5	$	—	$	1,688.8	$	(234.2	)
Intangible assets, net ²⁾		161.8		—		164.8		(12.0	)

1) In the fourth quarter of 2017, the Company recognized an impairment charge of the full goodwill related to ANBS, resulting in an impairment loss of $234.2 million, which was included in earnings for the period. The primary driver of the goodwill impairment was due to the lower expected long-term operating cash flow performance of the business unit as of the measurement date. The remaining goodwill balance as of March 31, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist.

2) In the first quarter of 2017, the Company recognized an impairment charge to amortization of intangibles of $12 million related to a contract with an OEM customer of M/A-COM products, which was included in earnings for the period. At December 31, 2017 the intangible value related to this customer contract was fully amortized. The remaining intangibles balance as of March 31, 2018 and December 31, 2017 was not measured at fair value on a nonrecurring basis as impairment indicators did not exist.