Derivative Financial Instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

We selectively use derivative instruments to reduce market risk associated with changes in foreign currency exchange rates and interest rates. The use of derivatives is intended for hedging purposes only and we do not enter into derivative instruments for speculative purposes. A description of each type of derivative used to manage risk is included in the following paragraphs.

During the year ended December 31, 2013, we entered into five interest rate swaps with notional amounts totaling $1,173.0 million to hedge interest rate exposures related to variable rate borrowings under the Senior Secured Credit Facilities. The interest rate swaps are in place until September 29, 2017. The interest rate swaps qualify and are designated as effective cash flow hedges.

The following table presents the location and fair values using Level 2 inputs of derivative instruments that qualify and have been designated as cash flow hedges included in our condensed consolidated balance sheet:

	September 30, 2015		December 31, 2014
Other assets:
Interest rate swaps	$	—	$	5.9
Total assets	$	—	$	5.9
Other liabilities:
Interest rate swaps	$	6.0	$	1.5
Total liabilities	$	6.0	$	1.5

The following table presents the location and fair values using Level 2 inputs of derivative instruments that have not been designated as hedges included in our condensed consolidated balance sheet:

	September 30, 2015		December 31, 2014
Other assets:
Interest rate cap	$	—	$	0.1
Prepaid expenses and other:
Foreign currency contracts	1.6		—
Total assets	$	1.6	$	0.1

For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

The following tables set forth the locations and amounts recognized during the three and nine months ended September 30, 2015 and 2014 for these cash flow hedges.

	Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion)					Location of (Gain) Loss Reclassified from  Accumulated OCI into Income (Effective Portion)	Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion)				Location of (Gain) Loss Recognized  in Income on  Derivatives (Ineffective Portion)	Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)
Derivatives in Cash Flow Hedging Relationships	Three Months Ended September 30, 2015		Three Months Ended September 30, 2014				Three Months Ended September 30, 2015		Three Months Ended September 30, 2014			Three Months Ended September 30, 2015		Three Months Ended September 30, 2014
Interest rate contracts	$	3.5	$	(4.0	)	Interest expense, net	$	1.7	$	1.7	Interest expense, net	$	1.0	$	(0.9	)

	Amount of (Gain) Loss Recognized in OCI on Derivatives (Effective Portion)				Location of (Gain) Loss Reclassified from  Accumulated OCI into Income (Effective Portion)	Amount of (Gain) Loss Reclassified from Accumulated OCI to Income (Effective Portion)				Location of (Gain) Loss Recognized  in Income on  Derivatives (Ineffective Portion)	Amount of (Gain) Loss Recognized in Income on Derivatives (Ineffective Portion)
Derivatives in Cash Flow Hedging Relationships	Nine Months Ended September 30, 2015		Nine Months Ended September 30, 2014			Nine Months Ended September 30, 2015		Nine Months Ended September 30, 2014			Nine Months Ended September 30, 2015		Nine Months Ended September 30, 2014
Interest rate contracts	$	8.0	$	1.0	Interest expense, net	$	4.9	$	4.9	Interest expense, net	$	2.4	$	(0.2	)

Also during the year ended December 31, 2013, we purchased a €300.0 million1.5% interest rate cap on our Euro Term Loan that is in place until September 29, 2017. We paid a premium of $3.1 million for the interest rate cap. The interest rate cap was not designated as a hedge and the changes in the fair value of the derivative instrument are recorded in current period earnings and are included in interest expense.

Fair value gains and losses of derivative contracts, as determined using Level 2 inputs, that do not qualify for hedge accounting treatment are recorded in income as follows:

		Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives Not Designated as Hedging Instruments under ASC 815	Location of (Gain) Loss Recognized in Income on Derivatives	2015			2014			2015			2014
Foreign currency forward contract	Other expense, net	$	(4.4	)	$	(0.3	)	$	(6.3	)	$	1.6
Interest rate cap	Interest expense, net	0.1			0.2			—			3.3
		$	(4.3	)	$	(0.1	)	$	(6.3	)	$	4.9