XML 114 R41.htm IDEA: XBRL DOCUMENT v2.4.1.9
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2014
Derivative Instruments and Hedges, Assets [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
Foreign exchange rate instruments embedded in purchase and sale contracts – The purpose of these instruments is to match offsetting currency payments and receipts for particular projects, or comply with government restrictions on the currency used to purchase goods in certain countries. At December 31, 2014, our portfolio of these instruments included the following material positions: 
 
Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Brazilian real
(105.6
)
 
(39.7
)
Norwegian krone
(77.6
)
 
(10.4
)
U.S. dollar
34.6

 
34.6

Foreign exchange rate forward contracts – The purpose of these instruments is to hedge the risk of changes in future cash flows of anticipated purchase or sale commitments denominated in foreign currencies. At December 31, 2014, we held the following material positions: 
 
Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Australian dollar
31.9

 
26.1

British pound
73.3

 
114.1

Canadian dollar
(150.0
)
 
(129.1
)
Euro
151.4

 
183.2

Kuwaiti dinar
(5.9
)
 
(20.1
)
Malaysian ringgit
107.8

 
30.8

Norwegian krone
2,859.0

 
383.6

Singapore dollar
222.3

 
167.7

U.S. dollar
(929.1
)
 
(929.1
)
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table of all outstanding derivative instruments is based on estimated fair value amounts that have been determined using available market information and commonly accepted valuation methodologies. Refer to Note 16 to these consolidated financial statements for further disclosures related to the fair value measurement process. Accordingly, the estimates presented may not be indicative of the amounts that we would realize in a current market exchange and may not be indicative of the gains or losses we may ultimately incur when these contracts settle or mature. 
 
December 31, 2014
 
December 31, 2013
(In millions)
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts:
 
 
 
 
 
 
 
Current – Derivative financial instruments
$
172.1

 
$
207.1

 
$
149.3

 
$
152.5

Long-term – Derivative financial instruments
129.4

 
214.6

 
65.4

 
44.1

Total derivatives designated as hedging instruments
301.5

 
421.7

 
214.7

 
196.6

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts:
 
 
 
 
 
 
 
Current – Derivative financial instruments
25.5

 
23.1

 
16.6

 
18.8

Long-term – Derivative financial instruments
5.5

 
5.6

 
3.1

 
3.0

Total derivatives not designated as hedging instruments
31.0

 
28.7

 
19.7

 
21.8

Total derivatives
$
332.5

 
$
450.4

 
$
234.4

 
$
218.4
Derivative Instruments, Effect on Other Comprehensive Income (Loss)
 
Gain (Loss) Recognized in OCI (Effective Portion)
 
Year Ended December 31,
(In millions)
2014
 
2013
 
2012
Interest rate contracts
$
—

 
$
—

 
$
1.6

Foreign exchange contracts
(137.1
)
 
24.1

 
41.9

Total
$
(137.1
)
 
$
24.1

 
$
43.5
Derivative Instruments, Gain (Loss)
Location of Gain (Loss) Reclassified from Accumulated OCI into Income
Gain (Loss) Reclassified From Accumulated
OCI into Income (Effective Portion)
 
Year Ended December 31,
(In millions)
2014
 
2013
 
2012
Foreign exchange contracts:
 
 
 
 
 
Revenue
$
(36.2
)
 
$
(11.7
)
 
$
6.6

Cost of sales
34.2

 
14.8

 
(1.9
)
Selling, general and administrative expense
(0.2
)
 
—

 
(0.2
)
Total
$
(2.2
)
 
$
3.1

 
$
4.5

Location of Gain (Loss) Recognized in Income
Gain (Loss) Recognized in Income (Ineffective Portion
and Amount Excluded from Effectiveness Testing)
 
Year Ended December 31,
(In millions)
2014
 
2013
 
2012
Foreign exchange contracts:
 
 
 
 
 
Revenue
$
24.7

 
$
2.7

 
$
13.7

Cost of sales
(24.9
)
 
(11.0
)
 
(17.6
)
Total
$
(0.2
)
 
$
(8.3
)
 
$
(3.9
)
Instruments that are not designated as hedging instruments are executed to hedge the effect of exposures in the consolidated balance sheets, and occasionally forward foreign currency contracts or currency options are executed to hedge exposures which do not meet all of the criteria to qualify for hedge accounting.
Location of Gain (Loss) Recognized in Income
Gain (Loss) Recognized in Income on
Derivatives (Instruments  Not Designated
as Hedging Instruments)
 
Year Ended December 31,
(In millions)
2014
 
2013
 
2012
Foreign exchange contracts:
 
 
 
 
 
Revenue
$
(4.0
)
 
$
0.6

 
$
4.9

Cost of sales
0.7

 
(0.2
)
 
(0.2
)
Other income (expense), net
35.4

 
(15.0
)
 
6.4

Total
$
32.1

 
$
(14.6
)
 
$
11.1
Offsetting Assets
 
December 31, 2014
 
December 31, 2013
(In millions)
Gross Amount Recognized
 
Gross Amounts Not Offset Permitted Under Master Netting Agreements
 
Net Amount
 
Gross Amount Recognized
 
Gross Amounts Not Offset Permitted Under Master Netting Agreements
 
Net Amount
Derivative assets
$
332.5

 
$
(321.5
)
 
$
11.0

 
$
234.4

 
$
(198.5
)
 
$
35.9
Offsetting Liabilities
 
December 31, 2014
 
December 31, 2013
(In millions)
Gross Amount Recognized
 
Gross Amounts Not Offset Permitted Under Master Netting Agreements
 
Net Amount
 
Gross Amount Recognized
 
Gross Amounts Not Offset Permitted Under Master Netting Agreements
 
Net Amount
Derivative liabilities
$
450.4

 
$
(321.5
)
 
$
128.9

 
$
218.4

 
$
(198.5
)
 
$
19.9