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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Outstanding Commodity and Currency Forward Contracts
As of June 30, 2018 and December 31, 2017, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Units Hedged
Currency
 
June 30, 2018
 
December 31, 2017
Singapore Dollar
 
28,127,000

 
28,127,000

European Euro
 
72,500,000

 
69,300,000

British Pound
 
10,715,407

 
14,912,019

Swiss Franc
 
3,400,000

 
4,800,000


The location and effects on the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 for gains or losses related to derivative instruments not designated as hedging instruments were as follows:

Derivatives NOT designated as hedging instruments (in millions)
 
Amount of gain (loss) recognized in income on derivative
 
Location of gain (loss) recognized in income on derivative
 
 
Three Months Ended June 30,
 
 
 
 
2018
 
2017
 
 
Foreign currency exchange contracts
 
$
2.1

 
$
(4.1
)
 
Other expense — net
Total
 
$
2.1

 
$
(4.1
)
 
 

Derivatives NOT designated as hedging instruments (in millions)
 
Amount of gain (loss) recognized in income on derivative
 
Location of gain (loss) recognized in income on derivative
 
 
Six Months Ended June 30,
 
 
 
 
2018
 
2017
 
 
Foreign currency exchange contracts
 
$
(10.8
)
 
$
(4.4
)
 
Other expense — net
Total
 
$
(10.8
)
 
$
(4.4
)
 
 
As of June 30, 2018 and December 31, 2017, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedges of forecasted transactions:

 
 
Units Hedged
 
 
Commodity
 
June 30, 2018
 
December 31, 2017
 
Unit
Aluminum
 
2,035

 
1,620

 
MT
Copper
 
657

 
667

 
MT
Steel
 
12,365

 
7,713

 
Short tons

 
 
Units Hedged
Currency
 
June 30, 2018
 
December 31, 2017
Canadian Dollar
 
18,290,000

 
18,080,000

European Euro
 
17,029,000

 
8,545,000

British Pound
 
17,377,130

 
7,807,744

Mexican Peso
 
301,265,000

 
126,400,000

Singapore Dollar
 
3,865,000

 
1,765,000
Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations for Gains or Losses Initially Recognized in Other Comprehensive Income (OCI) in the Consolidated Balance Sheet
The effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 for gains or losses initially recognized in AOCI in the consolidated balance sheets were as follows:

Derivatives in cash flow hedging relationships (in millions)
 
Pretax gain (loss) recognized in AOCI (effective portion)
 
Pretax gain (loss) effective portion of derivative reclassified from AOCI into income
 
Ineffective portion of gain (loss) on derivative and amount excluded from effectiveness testing recognized in income
 
 
Three Months Ended June 30,
 
Location
 
Three Months Ended June 30,
 
Location
 
Three Months Ended June 30,
 
 
2018

2017
 
 
 
2018
 
2017
 
 
 
2018
 
2017
Foreign currency exchange contracts
 
$
(2.5
)
 
$
2.0

 
Cost of sales
 
$
(0.1
)
 
$
0.5

 
Cost of sales
 
$
—

 
$
—

Commodity contracts
 
0.9

 
0.2

 
Cost of sales
 
0.8

 
0.2

 
Cost of sales
 
—

 
(0.1
)
Interest rate swap contracts
 
0.7

 
(0.2
)
 
Interest expense
 
—

 
—

 
Interest expense
 
—

 
—

Total
 
$
(0.9
)
 
$
2.0

 
 
 
$
0.7

 
$
0.7

 
 
 
$
—

 
$
(0.1
)

Derivatives in cash flow hedging relationships (in millions)
 
Pretax gain (loss) recognized in AOCI (effective portion)
 
Pretax gain (loss) effective portion of derivative reclassified from AOCI into income
 
Ineffective portion of gain (loss) on derivative and amount excluded from effectiveness testing recognized in income
 
 
Six Months Ended June 30,
 
Location
 
Six Months Ended June 30,
 
Location
 
Six Months Ended June 30,
 
 
2018
 
2017
 
 
 
2018
 
2017
 
 
 
2018
 
2017
Foreign currency exchange contracts
 
$
(1.7
)
 
$
2.7

 
Cost of sales
 
$
0.4

 
$
0.7

 
Cost of sales
 
$
—

 
$
—

Commodity contracts
 
0.4

 
0.6

 
Cost of sales
 
1.3

 
0.4

 
Cost of sales
 
0.1

 
0.2

Interest rate swap contracts
 
3.8

 
(1.8
)
 
Interest expense
 
—

 
—

 
Interest expense
 
—

 
—

Total
 
$
2.5

 
$
1.5

 
 
 
$
1.7

 
$
1.1

 
 
 
$
0.1

 
$
0.2


The location and effects of derivative instruments on the consolidated statements of comprehensive income and consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 for gains or losses initially recognized in AOCI in the consolidated balance sheets were as follows: 

Derivatives in net investments hedging relationships
(in millions)
 
Pretax gain (loss) recognized in AOCI (effective portion)
 
Gain (loss) reclassified from AOCI into income (effective portion)
 
 
Three Months Ended June 30,
 
Location
 
Three Months Ended June 30,
 
 
2018

2017
 
 
 
2018
 
2017
Interest rate swap contract
 
$
3.3

 
$
(0.2
)
 
N/A
 
$
—

 
$
—

Total
 
$
3.3

 
$
(0.2
)
 
 
 
$
—

 
$
—


Derivatives in net investments hedging relationships
(in millions)
 
Pretax gain (loss) recognized in AOCI (effective portion)
 
Gain (loss) reclassified from AOCI into income (effective portion)
 
 
Six Months Ended June 30,
 
Location
 
Six Months Ended June 30,
 
 
2018
 
2017
 
 
 
2018
 
2017
Interest rate swap contract
 
$
1.3

 
$
3.1

 
N/A
 
$
—

 
$
—

Total
 
$
1.3

 
$
3.1

 
 
 
$
—

 
$
—
Schedule of Gain or Loss on the Hedged Items
The gain or loss on the hedged item (that is, fixed-rate borrowing of the Senior Notes) attributable to the hedged benchmark interest rate risk (risk of changes in the applicable LIBOR swap rate) and the offsetting gain or loss on the related interest rate swap is as follows:

Derivatives in fair value hedging relationships (in millions)
 
Gain/(Loss) on Swap
 
Location
 
Gain/(Loss) on Hedged Item
 
 
Three Months Ended June 30,
 
 
 
Three Months Ended June 30,
 
 
2018
 
2017
 
 
 
2018
 
2017
Interest rate swap contract
 
$
(2.9
)
 
$
6.0

 
Interest Expense
 
$
2.7

 
$
(6.0
)
Total
 
$
(2.9
)
 
$
6.0

 
 
 
$
2.7

 
$
(6.0
)

Derivatives in fair value hedging relationships (in millions)
 
Gain/(Loss) on Swap
 
Location
 
Gain/(Loss) on Hedged Item
 
 
Six Months Ended June 30,
 
 
 
Six Months Ended June 30,
 
 
2018
 
2017
 
 
 
2018
 
2017
Interest rate swap contract
 
$
(11.4
)
 
$
0.3

 
Interest Expense
 
$
11.5

 
$
(0.3
)
Total
 
$
(11.4
)
 
$
0.3

 
 
 
$
11.5

 
$
(0.3
)
Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet
The fair value of outstanding derivative contracts recorded as assets in the consolidated balance sheets as of June 30, 2018 and December 31, 2017 was as follows:

 
 
Asset Derivatives
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
June 30, 2018
 
December 31, 2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Prepaids and other current assets
 
$
0.6

 
$
1.1

Commodity contracts
 
Prepaids and other current assets
 
1.9

 
1.7

Interest rate swap contracts
 
Prepaids and other current assets
 
4.8

 
1.7

Commodity contracts
 
Other non-current assets
 
0.2

 
0.6

Interest rate swap contracts
 
Other non-current assets
 
3.0

 
2.3

Total derivatives designated as hedging instruments
 
 
 
$
10.5

 
$
7.4

 
 
 
 
 
 
 
Total asset derivatives
 
 
 
$
10.5

 
$
7.4
Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet
The fair value of outstanding derivative contracts recorded as liabilities in the consolidated balance sheets as of June 30, 2018 and December 31, 2017 was as follows:

 
 
Liability Derivatives
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
June 30, 2018
 
December 31, 2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
$
2.1

 
$
0.6

Commodity contracts
 
Accrued expenses and other liabilities
 
0.2

 
0.1

Commodity contracts
 
Other long-term liabilities
 
0.3

 
—

Interest rate swap contracts
 
Other long-term liabilities
 
27.8

 
17.7

Total derivatives designated as hedging instruments
 
 
 
$
30.4

 
$
18.4

 
 
 
 
 
 
 
Derivatives NOT designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
$
1.5

 
$
0.5

Total derivatives NOT designated as hedging instruments
 
 
 
$
1.5

 
$
0.5

 
 
 
 
 
 
 
Total liability derivatives
 
 
 
$
31.9

 
$
18.9