Derivative Instruments

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors, including fluctuations in interest rates and foreign currencies. To manage the volatility related to these exposures, the Company uses derivative instruments. The objective of these derivative instruments is to reduce fluctuations in the Company’s earnings and cash flows associated with changes in foreign currency and interest rates. These financial instruments are not used for trading or other speculative purposes. The Company has not historically incurred, and does not expect to incur in the future, any losses as a result of counterparty default.

The Company's derivative portfolio is comprised of the following instruments as of March 31, 2017 and December 31, 2016.

March 31, 2017
				Derivative Assets			Derivative Liabilities
(In millions)	Fair Value Hierarchy Level	Notional Amount		Balance Sheet Caption	Fair Value		Balance Sheet Caption	Fair Value
Derivatives designated as hedges:
Cross-currency swap agreements	Level 2	$	730.9	Other long-term assets	$	9.4	Other long-term liabilities	$	(8.5	)
Cross-currency swap agreements	Level 2	2.0		Other current assets	0.1		Other current liabilities	—
Interest rate swaps	Level 2	106.9		Other current assets	—		Other current liabilities	(1.7		)
Derivatives not designated as hedges:
Foreign currency option and forward contracts	Level 2	614.3		Other current assets	14.6		Other current liabilities	(0.9		)
Foreign currency option and forward contracts	Level 2	588.6		Other long-term assets	16.1		Other long-term liabilities	(3.1		)
Total					$	40.2		$	(14.2	)

December 31, 2016
				Derivative Assets			Derivative Liabilities
(In millions)	Fair Value Hierarchy Level	Notional Amount		Balance Sheet Caption	Fair Value		Balance Sheet Caption	Fair Value
Derivatives designated as hedges:
Cross-currency swap agreements	Level 2	$	730.9	Other long-term assets	$	11.9	Other long-term liabilities	$	(6.9	)
Cross-currency swap agreements	Level 2	3.3		Other current assets	0.1		Other current liabilities	—
Interest rate swaps	Level 2	105.4		Other current assets	—		Other current liabilities	(2.3		)
Derivatives not designated as hedges:
Foreign currency option and forward contracts	Level 2	552.2		Other current assets	18.8		Other current liabilities	(1.0		)
Foreign currency option and forward contracts	Level 2	742.6		Other long-term assets	26.7		Other long-term liabilities	(5.8		)
Total					$	57.5		$	(16.0	)

The following table indicates the amount of pre-tax gains/(losses) that have been recognized in accumulated other comprehensive income (loss) in the condensed consolidated balance sheets and gains/(losses) recognized in income (loss) before income tax provision (benefit) in the condensed consolidated statements of operations for derivative and nonderivative instruments:

	Recognized in Accumulated Other Comprehensive Income (Loss)						Recognized in Income (Loss) Before Income Tax Provision (Benefit)
(In millions)	Three Months Ended March 31, 2017			Three Months Ended March 31, 2016			Three Months Ended March 31, 2017			Three Months Ended March 31, 2016
Derivatives designated as hedges:
Cross-currency swap agreements	$	(4.1	)	$	(32.8	)	$	—		$	—
Interest rate swaps	0.5			1.1			—			—
Derivatives not designated as hedges:
Interest rate swaps	—			—			—			0.2
Foreign currency option and forward contracts	—			—			(10.2		)	(2.4		)
Nonderivatives designated as hedges:
Foreign currency denominated notes	0.6			(1.7		)	—			$	—
Total	$	(3.0	)	$	(33.4	)	$	(10.2	)	$	(2.2	)

Foreign Currency Option and Forward Contracts

In order to mitigate against the risk of a reduction in the value of foreign currency from the Company’s international operations that primarily have the Euro ("EUR") and British Pound Sterling ("GBP") as the functional currency, the Company uses foreign currency option and forward contracts. The foreign currency contracts were not designated as qualifying hedging instruments as of March 31, 2017. The contracts are not speculative; rather, they are used to manage the Company’s exposure to foreign currency exchange rate fluctuations. The contracts expire in 24 months or less. Gains or losses on the contracts are recorded in foreign currency (gain) loss in the condensed consolidated statements of operations. Cash flows related to the foreign currency contracts are included in operating activities on the condensed consolidated statements of cash flows.