Derivative Financial Instruments

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Foreign Currency Exchange Rate Risk

The Company enters into foreign currency forward contracts not formally designated as hedges to manage the consolidated exchange rate risk associated with the remeasurement of non-functional currency denominated monetary assets and liabilities.  Changes in fair value of foreign currency forward contracts are recognized in income at the end of each reporting period based on the difference between the contract rate and the spot rate. In general, these gains and losses are offset in the Consolidated Statements of Income by the reciprocal gains and losses from cash settlement of the underlying assets or liabilities which originally gave rise to the exposure. The net amount of the gains and losses related to derivative instruments recorded in other (income) expense, net for the three and six months ended June 30, 2017 were net losses of $3.4 million and $7.7 million, respectively. The net losses for the three and six months ended June 30, 2016 were $9.1 million and $2.1 million, respectively.

The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands):

	June 30,		December 31,
	2017		2016
European euro	$	190,451	$	156,352
Swedish kroner	74,191		48,555
Canadian dollar	56,475		15,645
Brazilian real	9,562		2,747
Japanese yen	2,985		3,251
Australian dollar	2,129		1,653
British pound sterling	668		33,862
Other	485		—
	$	336,946	$	262,065

At June 30, 2017, the Company’s foreign currency forward contracts, in general, had maturities of three months or less.

The carrying amount of the foreign exchange contracts included in the Consolidated Balance Sheets are as follows (in thousands):

	June 30, 2017				December 31, 2016
	Prepaid Expenses and Other Current Assets		Other Current Liabilities		Prepaid Expenses and Other Current Assets		Other Current Liabilities
Foreign exchange contracts	$	3,853	$	1,768	$	2,369	$	75

Interest Rate Swap Contracts

At June 30, 2017, the effective interest rate on the borrowings made from the Company's revolving credit facility was 2.37 percent. As of June 30, 2017, the following interest rate swaps were outstanding:

Contract Date	Notional Amount (in millions)		Fixed Rate		Effective Date	Maturity Date
March 15, 2013	$	43.1	1.02	%	April 5, 2013	March 31, 2019
March 29, 2013	$	43.1	0.97	%	April 5, 2013	March 31, 2019

The net fair value carrying amount of the Company's interest rate swaps was $0.6 million, of which $0.3 million has been recorded to prepaid expenses and other current assets and $0.3 million has been recorded to other assets in the Consolidated Balance Sheet as of June 30, 2017.