Derivative Instruments

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

In the normal course of business, the Company is exposed to risks relating to changes in foreign currency exchange rates, interest rates and commodity prices. Derivative financial instruments, such as foreign currency exchange rate instruments, are used to manage changes in market conditions related to foreign currency exchange rate volatility. All derivatives are recognized on the Condensed Consolidated Balance Sheets at fair value at the end of each period. The counterparties to the Company’s derivative agreements are major international financial institutions. The Company continually monitors its positions and the credit ratings of its counterparties and does not anticipate nonperformance by the counterparties.

Foreign Currency

The Company conducts a significant portion of its business in currencies other than the U.S. dollar, the currency in which the consolidated financial statements are reported, and as a result, the Company’s operating results are affected by foreign currency exchange rate volatility relative to the U.S. dollar.

As of March 31, 2015, the aggregate U.S. dollar notional amount of foreign currency forward contracts, none of which were designated as hedges, totaled $163 million, all with settlement dates within one year. The majority of forward contracts are in U.S. dollars ($143 million), British pounds (£8.9 million) and Euros (€4.7 million), with lesser amounts in Australian dollars, New Zealand dollars and Chinese yuans. The market value of forward contracts are determined using pricing models based upon observable market inputs including both forward and spot prices for the underlying currencies. As of March 31, 2015, the net fair value of these contracts was a current asset of $1.0 million and as of December 31, 2014, the fair value of these contracts was a net current liability of $0.1 million, which is recorded as unrealized gain (loss) under other (expense) income in the accompanying Condensed Consolidated Statement of Operations.

During the three months ended March 31, 2015, there were no unrealized gains (losses) recorded to other comprehensive income related to foreign currency hedges and no realized gains (losses) recorded in other income (expense) related to the settlement of hedged foreign exchange contracts.

During the three months ended March 31, 2014, unrealized gains recorded to other comprehensive income related to foreign currency hedges were de minimis, and $0.2 million of realized gains recorded in other income (expense) related to the settlement of hedged foreign exchange contracts.

The following table summarizes the fair value of derivative instruments reported in the Condensed Consolidated Balance Sheets:

(amounts in millions)		March 31, 2015		December 31, 2014
		U.S. Dollar Amount		U.S. Dollar Amount
Derivatives not designated as hedging instruments:	Assets Balance Sheet Location
Foreign exchange contracts	Prepaid expenses & other current assets	$	4.0	$	—
	Liabilities Balance Sheet Location
Foreign exchange contracts	Accrued expenses and other current liabilities	3.0		0.1
Total derivative contracts		$	1.0	$	(0.1	)