XML 47 R36.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedges, Assets [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
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 and recorded assets and liabilities in our consolidated balance sheets. At September 30, 2016, we held the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Australian dollar
129.2

 
98.8

Brazilian real
469.2

 
144.5

British pound
106.5

 
138.2

Canadian dollar
(173.4
)
 
(132.3
)
Euro
136.5

 
152.5

Malaysian ringgit
124.9

 
30.2

Nigerian naira
(5,408.8
)
 
(17.2
)
Singapore dollar
168.4

 
123.5

U.S. dollar
(641.1
)
 
(641.1
)
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 September 30, 2016, our portfolio of these instruments included the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Euro
(34.3
)
 
(38.3
)
Norwegian krone
(240.9
)
 
(30.0
)
U.S. dollar
76.3

 
76.3
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
 
September 30, 2016
 
December 31, 2015
(In millions)
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts:
 
 
 
 
 
 
 
Current – Derivative financial instruments
$
98.6

 
$
168.5

 
$
307.6

 
$
488.2

Long-term – Derivative financial instruments
5.1

 
5.6

 
0.1

 
0.5

Total derivatives designated as hedging instruments
103.7

 
174.1

 
307.7

 
488.7

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts:
 
 
 
 
 
 
 
Current – Derivative financial instruments
29.7

 
37.1

 
26.3

 
28.7

Long-term – Derivative financial instruments
1.4

 
5.1

 
—

 
—

Total derivatives not designated as hedging instruments
31.1

 
42.2

 
26.3

 
28.7

Total derivatives
$
134.8

 
$
216.3

 
$
334.0

 
$
517.4
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
 
Gain (Loss) Recognized in
OCI (Effective Portion)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
2016
 
2015
 
2016
 
2015
Foreign exchange contracts
$
2.5

 
$
(41.5
)
 
$
20.7

 
$
(63.8
)
Derivative Instruments, Gain (Loss) in Income
Location of Gain (Loss) Reclassified from 
Accumulated OCI into Income
Gain (Loss) Reclassified from Accumulated
OCI into Income (Effective Portion)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
2016
 
2015
 
2016
 
2015
Foreign exchange contracts:
 
 
 
 
 
 
 
Revenue
$
(15.9
)
 
$
(29.9
)
 
$
(67.5
)
 
$
(91.6
)
Cost of sales
(1.1
)
 
17.8

 
14.1

 
36.8

Selling, general and administrative expense
—

 
(0.4
)
 
—

 
(1.3
)
Research and development expense
(0.4
)
 
0.1

 
(0.4
)
 
—

Net interest expense
—

 
(1.8
)
 
—

 
0.1

Total
$
(17.4
)
 
$
(14.2
)
 
$
(53.8
)
 
$
(56.0
)
 
 
 
 
 
 
 
 
Location of Gain (Loss) Recognized in Income
Gain (Loss) Recognized in Income (Ineffective Portion
and Amount Excluded from Effectiveness Testing)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
2016
 
2015
 
2016
 
2015
Foreign exchange contracts:
 
 
 
 
 
 
 
Revenue
$
4.0

 
$
4.4

 
$
11.0

 
$
11.3

Cost of sales
(3.2
)
 
(4.1
)
 
(13.0
)
 
(14.4
)
Selling, general and administrative expense
0.1

 
—

 
0.1

 
—

Net interest expense
—

 
—

 
—

 
(0.1
)
Other expense, net
(1.4
)
 
—

 
(1.4
)
 
—

Total
$
(0.5
)
 
$
0.3

 
$
(3.3
)
 
$
(3.2
)
Schedule of Other Derivatives Not Designated as Hedging Instruments
Location of Gain (Loss) Recognized in Income
Gain (Loss) Recognized in Income on Derivatives
(Instruments Not Designated as Hedging Instruments)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In millions)
2016
 
2015
 
2016
 
2015
Foreign exchange contracts:
 
 
 
 
 
 
 
Revenue
$
(2.0
)
 
$
(1.1
)
 
$
(4.8
)
 
$
(6.4
)
Cost of sales
(0.3
)
 
0.5

 
1.1

 
2.0

Other expense, net
(1.8
)
 
13.3

 
27.9

 
34.3

Total
$
(4.1
)
 
$
12.7

 
$
24.2

 
$
29.9
Offsetting Assets
 
September 30, 2016
 
December 31, 2015
(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
$
134.8

 
$
(122.9
)
 
$
11.9

 
$
334.0

 
$
(316.8
)
 
$
17.2
Offsetting Liabilities
 
September 30, 2016
 
December 31, 2015
(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
$
216.3

 
$
(122.9
)
 
$
93.4

 
$
517.4

 
$
(316.8
)
 
$
200.6