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Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative assets and liabilities measured at fair value
 
 
 
Fair Value Measurements as of
December 31, 2019
 
Total as of
December 31, 2019
 
Quoted prices
in active markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(In millions)
Cross currency swaps
$
10.0

 
$
—

 
$
10.0

 
$
—

Interest rate swaps
(111.5
)
 
—

 
(111.5
)
 
—

Foreign currency forwards
2.1

 
—

 
2.1

 
—

Commodity swaps and options
(41.2
)
 
—

 
(41.2
)
 
—

Warrants
2.7

 
—

 
2.7

 
—

Total
$
(137.9
)
 
$
—

 
$
(137.9
)
 
$
—

 
 
 
Fair Value Measurements as of
December 31, 2018
 
Total as of
December 31, 2018
 
Quoted prices
in active markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(In millions)
Cross currency swaps
$
36.5

 
$
—

 
$
36.5

 
$
—

Interest rate swaps
(12.3
)
 
—

 
(12.3
)
 
—

Foreign currency forwards
16.3

 
—

 
16.3

 
—

Commodity swaps and options
(42.0
)
 
—

 
(42.0
)
 
—

Warrants
19.6

 
—

 
19.6

 
—

Total
$
18.1

 
$
—

 
$
18.1

 
$
—
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets
 
December 31, 2019
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Cross currency swaps
$
900.0

 
Other current assets
 
$
1.8

 
Accounts payable and other current liabilities
 
$
—

 
 
 
Other non-current assets
 
8.2

 
Other liabilities
 
—

Interest rate swaps
$
1,500.0

 
Other non-current assets
 
—

 
Other liabilities
 
(111.5
)
Foreign currency forwards
$
237.9

 
Other current assets
 
1.9

 
Accounts payable and other current liabilities
 
(0.8
)
 
 
 
Other non-current assets
 
1.4

 
Other liabilities
 
(0.4
)
Total derivatives designated as hedging instruments
 
 
 
$
13.3

 
 
 
$
(112.7
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity swaps(1)
$
598.4

 
Other current assets
 
$
5.7

 
Accounts payable and other current liabilities
 
$
(36.4
)
 
 
 
Other non-current assets
 
1.0

 
Other liabilities
 
(11.5
)
Commodity options(1)
$
18.4

 
Other current assets
 
—

 
Accounts payable and other current liabilities
 
—

Warrants
$
53.1

 
Other non-current assets
 
2.7

 
Other liabilities
 
—

Total derivatives not designated as hedging instruments
 
$
9.4

 
 
 
$
(47.9
)
 
December 31, 2018
 
 
 
Asset derivatives
 
Liability derivatives
 
Notional amount
 
Balance sheet location
 
Fair value
 
Balance sheet location
 
Fair value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Cross currency swaps
$
500.0

 
Other non-current assets
 
$
36.5

 
Other liabilities
 
$
—

Interest rate swaps
$
1,500.0

 
Other non-current assets
 
—

 
Other liabilities
 
(12.3
)
Foreign currency forwards
$
338.6

 
Other current assets
 
7.3

 
Accounts payable and other current liabilities
 
(0.1
)
 
 
 
Other non-current assets
 
9.2

 
Other liabilities
 
(0.1
)
Total derivatives designated as hedging instruments
 
 
 
$
53.0

 
 
 
$
(12.5
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity swaps(1)
$
868.4

 
Other current assets
 
$
12.1

 
Accounts payable and other current liabilities
 
$
(37.9
)
 
 
 
Other non-current assets
 
6.1

 
Other liabilities
 
(22.3
)
Commodity options(1)
$
46.6

 
Other current assets
 
0.1

 
Accounts payable and other current liabilities
 
(0.1
)
Warrants
$
50.6

 
Other non-current assets
 
$
19.6

 
Other liabilities
 
—

Total derivatives not designated as hedging instruments
 
$
37.9

 
 
 
$
(60.3
)


(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.

Items Designated and Qualifying as Hedged Items in Fair Value Hedging Relationships in the Consolidated Balance Sheets (in millions):
Line item in the balance sheet in which the hedged item is included
 
Carrying amount of the hedged assets/liabilities
 
Cumulative amount of fair value hedging adjustment(s) in the hedged assets/liabilities(1) Increase/(Decrease)
 
As of December 31, 2019
 
As of December 31, 2018
 
As of December 31, 2019
 
As of December 31, 2018
 
 
(In millions)
 
 
Current portion of long-term debt and short-term borrowings
 
$
—

 
$
—

 
$
(0.2
)
 
$
(0.2
)
Long-term debt
 
$
—

 
$
—

 
$
6.5

 
$
8.3

(1)    Entire balances relate to hedging adjustments on discontinued hedging relationships.
The Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations
The Pretax Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) (in millions):
For the year ended December 31, 2019
Derivatives in cash flow hedge relationships
 
Amount of gain (loss) recognized in OCI on derivative
 
Location of gain (loss) reclassified from AOCI into income
 
Amount of gain (loss) recognized from AOCI on derivative
Forward starting interest rate swaps
 
$
(99.2
)
 
Interest expense
 
$
(3.0
)
Foreign currency forwards
 
(12.1
)
 
Cost of goods sold
 
3.1

 
 
 
 
Other income (expense), net
 
(0.7
)
Total
 
$
(111.3
)
 
 
 
$
(0.6
)
For the year ended December 31, 2019
Derivatives in net investment hedge relationships
 
Amount of gain (loss) recognized in OCI on derivative
 
Location of gain (loss) reclassified from AOCI into income
 
Amount of gain (loss) recognized from AOCI on derivative
 
Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)
 
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)(1)
Cross currency swaps
 
$
19.8

 
Interest expense
 
$
—

 
Interest expense
 
$
23.5

Total
 
$
19.8

 
 
 
$
—

 
 
 
$
23.5

For the year ended December 31, 2019
Non-derivative financial instruments in net investment hedge relationships
 
Amount of gain (loss) recognized in OCI on derivative
 
Location of gain (loss) reclassified from AOCI into income
 
Amount of gain (loss) recognized from AOCI on derivative
 
Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)
 
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)
EUR 800 million notes due 2024
 
$
20.4

 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

EUR 500 million notes due 2019
 
10.1

 
Other income (expense), net
 
—

 
Other income (expense), net
 
—

Total
 
$
30.5

 
 
 
$
—

 
 
 
$
—

For the year ended December 31, 2018
Derivatives in cash flow hedge relationships
 
Amount of gain (loss) recognized in OCI on derivative
 
Location of gain (loss) reclassified from AOCI into income
 
Amount of gain (loss) recognized from AOCI on derivative
Forward starting interest rate swaps
 
$
(12.3
)
 
Interest expense
 
$
(3.0
)
Foreign currency forwards
 
26.8

 
Cost of goods sold
 
(0.2
)
 
 
 

 
Other income (expense), net
 
(0.2
)
Total
 
$
14.5

 
 
 
$
(3.4
)


For the year ended December 31, 2018
Derivatives in net investment hedge relationships
 
Amount of gain (loss) recognized in OCI on derivative
 
Location of gain (loss) reclassified from AOCI into income
 
Amount of gain (loss) recognized from AOCI on derivative
 
Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)
 
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)(1)
Cross currency swaps
 
$
36.5

 
Interest expense
 
$
—

 
Interest expense
 
$
10.7

Total
 
$
36.5

 
 
 
$
—

 
 
 
$
10.7


(1)
Represents amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and period amortization is recorded in other comprehensive income.
For the year ended December 31, 2018
Non-derivative financial instruments in net investment hedge relationships
 
Amount of gain (loss) recognized in OCI on derivative
 
Location of gain (loss) reclassified from AOCI into income
 
Amount of gain (loss) recognized from AOCI on derivative
 
Location of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)
 
Amount of gain (loss) recognized in income on derivative (amount excluded from effectiveness testing)
EUR 800 million notes due 2024
 
$
43.0

 
Other income (expense), net
 
$
—

 
Other income (expense), net
 
$
—

EUR 500 million notes due 2019
 
26.9

 
Other income (expense), net
 
—

 
Other income (expense), net
 
—

Total
 
$
69.9

 
 
 
$
—

 
 
 
$
—


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
 
$
(3.7
)
 
Interest expense
 
$
—

Foreign currency forwards
 
(22.7
)
 
Cost of goods sold
 
3.7

 
Cost of goods sold
 
—

 
 
 

 
Other income (expense), net
 
(2.0
)
 
Other income (expense), net
 
—

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
Total
 
$
(3.5
)
 
 

We expect net losses of approximately $2 million (pretax) recorded in AOCI as of December 31, 2019 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 as of December 31, 2019 is approximately 4 years, as well as those related to our forecasted debt issuances in 2021, 2022, and 2026.
The Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Operations (in millions):
For the year ended December 31, 2019
 
Location and amount of gain (loss) recognized in income on fair value and cash flow hedging relationships(1)
 
Cost of goods sold
 
Other income (expense), net
 
Interest expense
Total amount of income and expense line items presented in the consolidated statement of operations in which the effects of fair value or cash flow hedges are recorded
$
(6,378.2
)
 
$
(14.7
)
 
$
(280.9
)
Gain (loss) on cash flow hedging relationships:
 
 
 
 
 
Forward starting interest rate swaps
 
 
 
 
 
Amount of gain (loss) reclassified from AOCI into income
$
—

 
$
—

 
$
(3.0
)
Foreign currency forwards
 
 
 
 
 
Amount of gain (loss) reclassified from AOCI into income
$
3.1

 
$
(0.7
)
 
$
—

For the year ended December 31, 2018
 
Location and amount of gain (loss) recognized in income on fair value and cash flow hedging relationships(1)
 
Cost of goods sold
 
Other income (expense), net
 
Interest expense
Total amount of income and expense line items presented in the consolidated statement of operations in which the effects of fair value or cash flow hedges are recorded
$
(6,584.8
)
 
$
(12.0
)
 
$
(306.2
)
Gain (loss) on cash flow hedging relationships:
 
 
 
 
 
Forward starting interest rate swaps
 
 
 
 
 
Amount of gain (loss) reclassified from AOCI into income
$
—

 
$
—

 
$
(3.0
)
Foreign currency forwards
 
 
 
 
 
Amount of gain (loss) reclassified from AOCI into income
$
(0.2
)
 
$
(0.2
)
 
$
—
Other Derivatives
The Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statements of Operations (in millions):
For the year ended December 31, 2019
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
 
$
(26.8
)
Warrants
 
Other income (expense), net
 
(17.8
)
Total
 
 
 
$
(44.6
)

For the year ended December 31, 2018
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
 
$
(110.5
)
Warrants
 
Other income (expense), net
 
(23.8
)
Total
 
 
 
$
(134.3
)

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


Lower commodity prices relative to our hedged positions, primarily in aluminum and diesel during 2019 and primarily in aluminum during 2018, drove the total losses recognized in income related to commodity swaps for the years ended December 31, 2019 and December 31, 2018. Contrarily, higher commodity prices, primarily in aluminum, during 2017 resulted in the total gain recognized in income related to commodity swaps for the year ended December 31, 2017.
Schedule Of Assumptions used To Estimate Fair Value Of Warrants As of December 31, 2019 and December 31, 2018, the assumptions used to estimate the fair value of the HEXO warrants are as follows:
 
As of December 31, 2019
 
As of December 31, 2018
Expected term (years)
1.75

 
2.75

Estimated volatility
81.45
%
 
88.71
%
Risk-free interest rate
1.69
%
 
2.04
%
Expected dividend yield
—
%
 
—
%