Hedging Activities and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018.

	March 31, 2019
	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	$	925.0	$	-	$	-	$	9.1	$	10.1
Derivatives Not Designated as Hedging Instruments
Foreign currency forwards	Fair Value	$	32.8	$	0.2	$	-	$	-	$	-
Foreign currency forwards	Fair Value	$	166.8	$	-	$	-	$	3.3	$	-

	December 31, 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	$	925.0	$	-	$	-	$	11.2	$	8.7
Derivatives Not Designated as Hedging Instruments
Foreign currency forwards	Fair Value	$	143.3	$	1.3	$	-	$	-	$	-
Foreign currency forwards	Fair Value	$	27.5	$	-	$	-	$	0.1	$	-

⁽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 Income for the three month periods ended March 31, 2019 and 2018 are as presented in the table below.

	For the Three Month Period Ended March 31, 2019			For the Three Month Period Ended March 31, 2018
Interest rate swap contracts
(Loss) gain recognized in AOCI on derivatives	$	(2.4	)	$	10.3
Loss reclassified from AOCI into income (effective portion)⁽¹⁾		(3.7	)		(4.8	)

⁽¹⁾

Losses on derivatives reclassified from accumulated other comprehensive income (“AOCI”) into income were included within “Interest expense” of the Condensed Consolidated Statements of Operations.

Losses on Derivative Instruments Not Designated as Accounting Hedges and Total Net Foreign Currency Losses

The Company’s losses on derivative instruments not designated as accounting hedges and total net foreign currency losses for the three month periods ended March 31, 2019 and 2018 were as follows.

	For the Three Month Period Ended March 31, 2019			For the Three Month Period Ended March 31, 2018
Foreign currency forward contract losses	$	(1.6	)	$	(1.0	)
Total foreign currency transaction losses, net		(3.1	)		(2.6	)

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 for the three month periods ended March 31, 2019 and 2018 and the net balance of such gains and (losses) included in accumulated other comprehensive (loss) income as of March 31, 2019 and 2018 were as follows.

	For the Three Month Period Ended March 31, 2019		For the Three Month Period Ended March 31, 2018

Gain (loss), net of income tax, recorded through other comprehensive income	$	11.6	$	(15.2	)
Balance included in accumulated other comprehensive (loss) income as of March 31, 2019 and 2018, respectively		68.2		17.0

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 March 31, 2019.

	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⁾		6.5		-		-		6.5
Total	$	6.5	$	0.2	$	-	$	6.7
Financial Liabilities
Foreign currency forwards⁽¹⁾	$	-	$	3.3	$	-	$	3.3
Interest rate swaps⁽³⁾		-		19.2		-		19.2
Deferred compensation plan⁽²⁾		6.5		-		-		6.5
Total	$	6.5	$	22.5	$	-	$	29.0

⁽¹⁾

Based on calculations that use readily observable market parameters at 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 March 31, 2019. The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparties.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details