Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities

Schedule of notional amounts outstanding under foreign currency contracts

These transactions do not qualify for hedge accounting and, accordingly, the instrument is recorded at fair value with the corresponding gains and losses recorded in the consolidated statements of income and comprehensive income. The Company had the following notional amounts outstanding under foreign exchange contracts and cross-currency interest rate swap agreements  at March 31, 2020 and December 31, 2019 (in millions):

	March 31, 2020				December 31, 2019
	Notional				Notional
	Amount in U.S.				Amount in U.S.
	Dollars		Fair Value		Dollars		Fair Value
Forward Currency Contracts (1):
Assets	$	37.5	$	0.8	$	66.7	$	0.9
Liabilities		61.6		(0.8)		7.7		(0.4)
Cross-Currency and Interest Rate Swap Agreements (2):
Assets		205.0		7.5		—		—
Liabilities		300.0		(3.4)		505.0		(6.8)
	$	604.1	$	4.1	$	579.4	$	(6.3)

Schedule of fair value and balance sheet location of derivative instruments

The derivative instruments described above are recorded in the unaudited condensed consolidated balance sheets for the periods as follows (dollars in millions):

	March 31, 2020		December 31, 2019
Derivatives designated as hedging instruments
Interest rate cross-currency swap agreements
Other current assets	$	9.3	$	10.1
Other current liabilities		(3.4)		—
Other long-term assets		11.8		—
Other long-term liabilties		(13.6)		(16.9)
Total derivatives designated as hedging instruments		4.1		(6.8)
Derivatives not designated as hedging instruments
Foreign exchange contracts
Other current assets	$	0.8	$	0.9
Other current liabilities		(0.8)		(0.4)
Embedded derivatives in purchase and delivery contracts
Other current assets		0.1		0.1
Other current liabilities		—		(0.6)
Fixed price commodity contracts
Other current assets		—		0.3
Other current liabilities		(0.8)		—
Total derivatives not designated as hedging instruments		0.9		0.3
Total derivatives	$	5.0	$	(6.5)

The following is a summary of the activity included in the unaudited condensed consolidated statements of income and comprehensive income related to the above described derivative instruments (in millions):

		Three Months Ended March 31,
	Financial Statement Classification	2020		2019
Derivatives not designated as hedging instruments
Foreign exchange contracts	Interest and other income (expense), net	$	(0.5)	$	1.7
Embedded derivatives in purchase and delivery contracts	Interest and other income (expense), net		0.6		(0.1)
Fixed price commodity contracts	Interest and other income (expense), net		(1.1)		0.5
		$	(1.0)	$	2.1
Derivatives designated as Cash Flow hedging instruments
Interest rate cross-currency swap agreements
Interest earned in 2020	Interest and other income (expense), net	$	—	$	—
Unrealized gains on contracts	Accumulated other comprehensive income		(19.0)		—
		$	(19.0)	$	—
Derivatives designated as Net Investment hedging instruments
Interest rate cross-currency swap agreements
Interest earned in 2020	Interest and other income (expense), net	$	(2.6)	$	—
Unrealized losses on contracts	Accumulated other comprehensive income		29.9		—
		$	27.3	$	—

Schedule of impact on net income of unrealized gains and losses resulting from changes in the fair value of derivative instruments