XML 73 R46.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative assets and liabilities measured at fair value
 
 
 
Fair Value Measurements at
December 31, 2017
 
Total at
December 31, 2017
 
Quoted prices
in active markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(In millions)
Foreign currency forwards
$
(10.9
)
 
—

 
$
(10.9
)
 
—

Commodity swaps
122.8

 
—

 
122.8

 
—

Total
$
111.9

 
$
—

 
$
111.9

 
$
—

 
 
 
Fair Value Measurements at
December 31, 2016
 
Total at
December 31, 2016
 
Quoted prices
in active markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(In millions)
Foreign currency forwards
$
14.4

 
$
—

 
$
14.4

 
$
—

Commodity swaps
(18.1
)
 
—

 
(18.1
)
 
—

Total
$
(3.7
)
 
$
—

 
$
(3.7
)
 
$
—
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets
 
December 31, 2017
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency forwards
$
326.4

 
Other current assets
 
$
0.4

 
Accounts payable and other current liabilities
 
$
(6.1
)
 
 
 
Other non-current assets
 
0.2

 
Other liabilities
 
(5.4
)
Total derivatives designated as hedging instruments
 
 
 
$
0.6

 
 
 
$
(11.5
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity swaps(1)
$
765.0

 
Other current assets
 
$
70.8

 
Accounts payable and other current liabilities
 
$
(7.3
)
 
 
 
Other non-current assets
 
63.5

 
Other liabilities
 
(4.2
)
Commodity options(1)
$
30.6

 
Other current assets
 
0.2

 
Accounts payable and other current liabilities
 
(0.2
)
Total derivatives not designated as hedging instruments
 
$
134.5

 
 
 
$
(11.7
)
 
December 31, 2016
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency forwards
$
329.4

 
Other current assets
 
$
12.0

 
Accounts payable and other current liabilities
 
$
(0.3
)
 
 
 
Other non-current assets
 
3.3

 
Other liabilities
 
(0.6
)
Total derivatives designated as hedging instruments
 
 
 
$
15.3

 
 
 
$
(0.9
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity swaps(1)
$
791.4

 
Other current assets
 
$
11.8

 
Accounts payable and other current liabilities
 
$
(23.3
)
 
 
 
Other non-current assets
 
12.6

 
Other liabilities
 
(19.2
)
Commodity options(1)
$
13.6

 
Other current and non-current assets
 
—

 
Accounts payable and other current liabilities and other liabilities
 
—

Total derivatives not designated as hedging instruments
 
$
24.4

 
 
 
$
(42.5
)


(1)
Notional includes offsetting buy and sell positions, shown in terms of absolute value. Buy and sell positions are shown gross in the asset and/or liability position, as appropriate.

The Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations
The Pretax Effect of Derivative Instruments on the Consolidated Statements of Operations (in millions):
For the year ended December 31, 2017
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective portion)
 
Location of gain
(loss) reclassified
from AOCI
into income
(effective portion)
 
Amount of gain
(loss) recognized
from AOCI
on derivative
(effective portion)
 
Location of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
 
Amount of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$
—

 
Interest expense, net
 
$
(3.7
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
(22.7
)
 
Other income (expense), net
 
(2.0
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
3.7

 
Cost of goods sold
 
—

Total
 
$
(22.7
)
 
 
 
$
(2.0
)
 
 
 
$
—

For the year ended December 31, 2017
Non-derivative financial instruments in net investment hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective portion)
 
Location of gain
(loss) reclassified
from AOCI
into income
(effective portion)
 
Amount of gain
(loss) recognized
from AOCI
on derivative
(effective portion)
 
Location of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
 
Amount of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
EUR 800 million notes due 2024
 
$
(119.0
)
 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

EUR 500 million notes due 2019
 
(63.6
)
 
Other income (expense), net
 
—

 
Other income (expense), net
 
—

Total
 
$
(182.6
)
 
 
 
$
—

 
 
 
$
—

For the year ended December 31, 2017
Derivatives in fair value hedge relationship
 
Amount of gain (loss) recognized in income on derivative
 
Location of gain (loss) recognized in income
Interest rate swaps
 
$
(3.5
)
 
Interest expense, net
Total
 
$
(3.5
)
 
 
For the year ended December 31, 2016
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective portion)
 
Location of gain
(loss) reclassified
from AOCI
into income
(effective portion)
 
Amount of gain
(loss) recognized
from AOCI
on derivative
(effective portion)
 
Location of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
 
Amount of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$
—

 
Interest expense, net
 
$
(3.8
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
(23.7
)
 
Other income (expense), net
 
(7.2
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
14.4

 
Cost of goods sold
 
—

Total
 
$
(23.7
)
 
 
 
$
3.4

 
 
 
$
—


For the year ended December 31, 2016
Non-derivative financial instruments in net investment hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective portion)
 
Location of gain
(loss) reclassified
from AOCI
into income
(effective portion)
 
Amount of gain
(loss) recognized
from AOCI
on derivative
(effective portion)
 
Location of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
 
Amount of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
EUR 800 million notes due 2024
 
$
43.7

 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

Total
 
$
43.7

 
 
 
$
—

 
 
 
$
—



For the year ended December 31, 2015
Derivatives in cash flow hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective portion)
 
Location of gain
(loss) reclassified
from AOCI
into income
(effective portion)
 
Amount of gain
(loss) recognized
from AOCI
on derivative
(effective portion)
 
Location of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
 
Amount of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
Forward starting interest rate swaps
 
$
(19.3
)
 
Interest expense, net
 
$
(2.0
)
 
Interest expense, net
 
$
—

Foreign currency forwards
 
26.3

 
Other income (expense), net
 
(11.9
)
 
Other income (expense), net
 
—

 
 
 

 
Cost of goods sold
 
21.0

 
Cost of goods sold
 
—

Total
 
$
7.0

 
 
 
$
7.1

 
 
 
$
—

For the year ended December 31, 2015
Derivatives in net investment hedge relationships
 
Amount of gain
(loss) recognized
in OCI on
derivative
(effective portion)
 
Location of gain
(loss) reclassified
from AOCI
into income
(effective portion)
 
Amount of gain
(loss) recognized
from AOCI
on derivative
(effective portion)
 
Location of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
 
Amount of gain
(loss) recognized
in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
Cross currency swaps
 
$
16.0

 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

Total
 
$
16.0

 
 
 
$
—

 
 
 
$
—

For the year ended December 31, 2015
Derivatives in fair value hedge relationship
Amount of gain (loss) recognized in income on derivative

Location of gain (loss) recognized in income
Interest rate swaps
$
8.0


Interest expense, net
Total
$
8.0




We expect net losses of approximately $9 million (pretax) recorded in AOCI at December 31, 2017, will be reclassified into earnings within the next 12 months. For derivatives designated in cash flow hedge relationships, the maximum length of time over which forecasted transactions are hedged at December 31, 2017, is approximately three years.
Other Derivatives
Other Derivatives (in millions):
For the year ended December 31, 2017
Derivatives not in hedging relationship
 
Location of gain (loss) recognized
in income on derivative
 
Amount of gain (loss) recognized
in income on derivative
Commodity swaps
 
Cost of goods sold
 
$
150.1

Foreign currency swaps
 
Other income (expense), net
 
(8.3
)
Total
 
 
 
$
141.8


For the year ended December 31, 2016
Derivatives not in hedging relationship
 
Location of gain (loss) recognized
in income on derivative
 
Amount of gain (loss) recognized
in income on derivative
Commodity swaps
 
Cost of goods sold
 
$
13.0

Commodity options
 
Cost of goods sold
 
(0.7
)
Foreign currency swaps
 
Other income (expense), net
 
(4.3
)
Swaption
 
Interest Expense
 
(36.4
)
Total
 
 
 
$
(28.4
)

For the year ended December 31, 2015
Derivatives not in hedging relationship
 
Location of gain (loss) recognized
in income on derivative
 
Amount of gain (loss) recognized
in income on derivative
Commodity swaps
 
Cost of goods sold
 
$
(19.9
)
Foreign currency swaps
 
Other income (expense), net
 
0.1

Total
 
 
 
$
(19.8
)

Higher commodity prices, primarily aluminum, during 2017 drove the total gain recognized in income related to commodity swaps for the year ended December 31, 2017.