XML 65 R46.htm IDEA: XBRL DOCUMENT v3.3.1.900
DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair value of outstanding derivatives
The following table summarizes the fair value of the Company’s outstanding derivatives:
 
 
 
 
 
December 31,
(Dollars in millions)
Hedge Designation
 
Balance Sheet Location
 
2015
 
2014
Foreign exchange contracts
Cash Flow
 
Prepaid expenses and other assets
 
$
6.4

 
$
13.0

Interest rate forward swaps
Fair Value
 
Other assets
 
3.9

 
—

Foreign exchange contracts
Cash Flow
 
Accrued expenses
 
(0.9
)
 
(0.2
)
Interest rate forward swaps
Fair Value
 
Other liabilities
 
(3.5
)
 
(0.9
)
Commodity contracts
Cash Flow
 
Accrued expenses
 
(0.2
)
 
(0.8
)
Net asset/(liability) of derivatives designated as hedging items
 
 
 
$
5.7

 
$
11.1
Schedule Of Outstanding Foreign Exchange Forward Contracts
The fair value of foreign exchange forward contracts should be viewed in relation to the fair value of the underlying hedged transactions and the overall reduction in exposure to fluctuations in foreign currency exchange rates.
(Dollars in millions)
 
Weighted-average
Forward Rate
 
Notional
Amount
 
Fair Value
Asset
 
Maturity
Foreign exchange contracts:
 
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
 
Canadian dollar
 
1.24
 
$
7.0

 
$
0.7

 
2016
Mexican peso
 
16.76
 
55.2

 
2.0

 
2016
Malaysian ringgit
 
4.16
 
60.6

 
2.4

 
2016
Philippine peso
 
46.99
 
52.0

 
0.4

 
2016
Total foreign exchange contracts
 
 
 
$
174.8

 
$
5.5

 
 
Schedule of Change in Accumulated Other Comprehensive Income (Loss) and the Impact on Earnings from Foreign Exchange Contracts
The change in accumulated other comprehensive income (loss) and the impact on earnings from foreign exchange contracts that qualified as cash flow hedges for the years ended December 31, 2015 and 2014, were as follows:
(Dollars in millions)
2015
 
2014
Balance—January 1
$
10.4

 
$
3.2

Derivatives qualifying as cash flow hedges deferred in other comprehensive income
21.4

 
12.1

Derivatives qualifying as cash flow hedges reclassified to cost of products sold
(23.8
)
 
(2.0
)
Change in deferred taxes
2.1

 
(2.9
)
Balance—December 31
$
10.1

 
$
10.4
Schedule of Derivative Liabilities at Fair Value
The following table summarizes the interest rate swaps outstanding as of December 31, 2015. The interest rate swaps for the 2019 Notes have a hedge inception date of May 2014 with a maturity date of November 2019 and the interest rate swaps for the 2020 Notes have an inception date of November 2015 and a maturity date of November 2020:
(Dollars in millions)
 
Notional Amount of Underlying
 
Fixed Rate Received
 
Variable Rate Paid
(U.S. 3 Month LIBOR +)
 
Fair Value
Asset/(Liability)
Swaps associated with the 2019 Notes
 
$
700.0

 
4.9
%
 
3.14
%
 
$
3.9

Swaps associated with the 2020 Notes
 
$
750.0

 
3.0
%
 
1.38
%
 
$
(3.5
)