XML 48 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Hedging Activities and Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2018
Hedging Activities and Fair Value Measurements [Abstract]  
Notional Amounts, Fair Values and Classification of Outstanding Derivatives by Risk Category and Instrument Type
The following table summarizes the notional amounts, fair values and classification of the Company’s outstanding derivatives by risk category and instrument type within the Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017.

  
June 30, 2018
 

  		 
Derivative
Classification
 
Notional
Amount (1)
  
Fair Value (1)
Other Current
Assets
  
Fair Value (1)
Other Assets
  
Fair Value (1)
Accrued
Liabilities
  
Fair Value (1)
Other
Liabilities
 
Derivatives Designated as Hedging Instruments
                 
Interest rate swap contracts
 
Cash Flow
 
$
1,125.0
  
$
-
  
$
-
  
$
5.3
  
$
20.2
 
Derivatives Not Designated as Hedging Instruments
                      
Foreign currency forwards
 
Fair Value
 
$
49.8
  
$
0.2
  
$
-
  
$
-
  
$
-
 
Foreign currency forwards
 
Fair Value
 
$
93.5
  
$
-
  
$
-
  
$
0.5
  
$
-
 
                       
  
December 31, 2017
 

 
Derivative
Classification
 
Notional
Amount (1)
  
Fair Value (1)
Other Current
Assets
  
Fair Value (1)
Other Assets
  
Fair Value (1)
Accrued
Liabilities
  
Fair Value (1)
Other
Liabilities
 
Derivatives Designated as Hedging Instruments
                      
Interest rate swap contracts
 
Cash Flow
 
$
1,125.0
  
$
-
  
$
-
  
$
16.1
  
$
30.6
 
Derivatives Not Designated as Hedging Instruments
                      
Foreign currency forwards
 
Fair Value
 
$
94.4
  
$
-
  
$
-
  
$
1.2
  
$
-
 


(1)
Notional amounts represent the gross contract amounts of the outstanding derivatives excluding the total notional amount of positions that have been effectively closed through offsetting positions.  The net gains and net losses associated with positions that have been effectively closed through offsetting positions but not yet settled are included in the asset and liability derivatives fair value columns, respectively.
Gains and Losses on Derivatives Designated as Cash Flow Hedges
Gains and losses on derivatives designated as cash flow hedges included in the Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and six month periods ended June 30, 2018 and 2017, are as presented in the table below.  See Note 1 “Condensed Consolidated Financial Statements” for a discussion of the adoption of ASU 2017-12.

  
For the Three
Month Period Ended
June 30,
  
For the Six
Month Period Ended
June 30,
 
  
2018
  
2017
  
2018
  
2017
 
Interest rate swap contracts (1)
            
Gain (loss) recognized in AOCI on derivatives
 
$
3.1
  
$
(6.1
)
 
$
13.4
  
$
(6.3
)
Loss reclassified from AOCI into income
  
(3.1
)
  
(4.7
)
  
(7.9
)
  
(9.8
)


(1)
Losses on derivatives reclassified from accumulated other comprehensive income (“AOCI”) into income were included in “Interest expense” in the Condensed Consolidated Statements of Operations, the same income statement line item as the earnings effect of the hedged item.
(Losses) Gains on Derivative Instruments Not Designated as Accounting Hedges and Total Net Foreign Currency (Losses) Gains
The Company’s (losses) gains on derivative instruments not designated as accounting hedges and total net foreign currency (losses) gains for the three and six month periods ended June 30, 2018 and 2017 were as follows.

  
For the Three
Month Period Ended
June 30,
  
For the Six
Month Period Ended
June 30,
 
  
2018
  
2017
  
2018
  
2017
 
Foreign currency forward contracts gains (losses)
 
$
7.3
  
$
(2.7
)
 
$
6.2
  
$
(4.9
)
Total foreign currency transaction gains (losses), net
  
2.4
   
(4.0
)
  
(0.2
)
  
(4.7
)
Changes in Value of Debt and Designated Interest Rate Swaps
The Company’s gains and (losses), net of income tax, associated with changes in the value of debt and designated cross currency interest rate swaps for the three and six month periods ended June 30, 2018 and 2017 and the net balance of such gains and (losses) included in accumulated other comprehensive (loss) income as of June 30, 2018 and 2017 were as follows.

  
For the Three
Month Period Ended
June 30,
  
For the Six
Month Period Ended
June 30,
 
  
2018
  
2017
  
2018
  
2017
 
Gain (loss), net of income tax, recorded through othercomprehensive income
 
$
29.7
  
$
(25.7
)
 
$
14.5
  
$
(29.6
)
Balance included in accumulated other comprehensive (loss)income as of June 30, 2018 and 2017, respectively
         
$
46.7
  
$
52.7
 
Assets and Liabilities Measured at Fair Value
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018.

  
Level 1
  
Level 2
  
Level 3
  
Total
 
Financial Assets
            
Foreign currency forwards (1)
 
$
-
  
$
0.2
  
$
-
  
$
0.2
 
Trading securities held in deferred compensation plan (2)
  
5.9
   
-
   
-
   
5.9
 
Total
 
$
5.9
  
$
0.2
  
$
-
  
$
6.1
 
Financial Liabilities
                
Foreign currency forwards (1)
 
$
-
  
$
0.5
  
$
-
  
$
0.5
 
Interest rate swaps (3)
  
-
   
25.5
   
-
   
25.5
 
Deferred compensation plan (2)
  
5.9
   
-
   
-
   
5.9
 
Total
 
$
5.9
  
$
26.0
  
$
-
  
$
31.9
 


(1)
Based on calculations that use readily observable market parameters as their basis, such as spot and forward rates.


(2)
Based on the quoted price of publicly traded mutual funds which are classified as trading securities and accounted for using the mark-to-market method.


(3)
Measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curves as of June 30, 2018.  The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparties.