Financial Instruments, Risk Management and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Derivative Instruments Fair Value and Balance Sheet Presentation

The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments as of December 31, 2019 and 2018.


	December 31, 2019
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges		Not Designated as Hedging Instruments		Total Gross Amounts		Gross Amounts Offset in the Consolidated Balance Sheet ⁽³⁾		Net Amounts
Derivatives
Foreign exchange contracts	$	8.0	$	0.3	$	8.3	$	(8.1)	$	0.2




Total derivative assets⁽¹⁾	$	8.0	$	0.3	$	8.3	$	(8.1)	$	0.2

Foreign exchange contracts	$	(12.1)	$	(4.2)	$	(16.3)	$	8.1	$	(8.2)


Interest rate contracts	(0.9)		—		(0.9)		$	—	(0.9)
Total derivative liabilities⁽²⁾	$	(13.0)	$	(4.2)	$	(17.2)	$	8.1	$	(9.1)

Net derivative assets (liabilities)	$	(5.0)	$	(3.9)	$	(8.9)	$	—	$	(8.9)


	December 31, 2018
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges		Not Designated as Hedging Instruments		Total Gross Amounts		Gross Amounts Offset in the Consolidated Balance Sheet ⁽³⁾		Net Amounts
Derivatives
Foreign exchange contracts	$	18.3	$	1.5	$	19.8	$	(8.1)	$	11.7



Total derivative assets⁽¹⁾	$	18.3	$	1.5	$	19.8	$	(8.1)	$	11.7

Foreign exchange contracts	$	(8.0)	$	(0.2)	$	(8.2)	$	8.1	$	(0.1)
Interest rate contracts	(0.2)		—		(0.2)		—		(0.2)


Total derivative liabilities⁽²⁾	$	(8.2)	$	(0.2)	$	(8.4)	$	8.1	$	(0.3)

Net derivative assets (liabilities)	$	10.1	$	1.3	$	11.4	$	—	$	11.4

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(1) Net balance is included in “Prepaid and other current assets” in the consolidated balance sheets.

(2) Net balance is included in “Accrued and other liabilities” in the consolidated balance sheets.

(3) Represents net derivatives positions subject to master netting arrangements.

Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income

The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as hedging instruments.

Derivatives in Cash Flow Hedging Relationships


	Contracts
(in Millions)	Foreign exchange		Energy		Interest rate		Total
Accumulated other comprehensive income (loss), net of tax at December 31, 2016	$	4.6	$	1.4	$	1.1	$	7.1
2017 Activity
Unrealized hedging gains (losses) and other, net of tax	$	(0.4)	$	(0.8)	$	—	$	(1.2)
Reclassification of deferred hedging (gains) losses, net of tax ⁽¹⁾	0.2		(0.6)		(0.3)		(0.7)
Total derivative instrument impact on comprehensive income, net of tax	$	(0.2)	$	(1.4)	$	(0.3)	$	(1.9)

Accumulated other comprehensive income (loss), net of tax at December 31, 2017	$	4.4	$	—	$	0.8	$	5.2
2018 Activity
Unrealized hedging gains (losses) and other, net of tax	$	14.2	$	—	$	(0.5)	$	13.7
Reclassification of deferred hedging (gains) losses, net of tax ⁽¹⁾	(8.2)		—		0.5		(7.7)
Total derivative instrument impact on comprehensive income, net of tax	$	6.0	$	—	$	—	$	6.0

Accumulated other comprehensive income (loss), net of tax at December 31, 2018	$	10.4	$	—	$	0.8	$	11.2
2019 Activity
Unrealized hedging gains (losses) and other, net of tax	$	(3.1)	$	—	$	(65.9)	$	(69.0)
Reclassification of deferred hedging (gains) losses, net of tax ⁽¹⁾	(8.7)		—		0.5		(8.2)
Total derivative instrument impact on comprehensive income, net of tax	$	(11.8)	$	—	$	(65.4)	$	(77.2)

Accumulated other comprehensive income (loss), net of tax at December 31, 2019	$	(1.4)	$	—	$	(64.6)	$	(66.0)

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(1)Amounts are included in “Costs of sales and services” and "Interest expense" on the consolidated statements of income (loss).

Derivatives Not Designated as Hedging Instruments


	Amount of Pre-tax Gain (Loss) Recognized in Income on Derivatives ⁽¹⁾
	Year Ended December 31,
(in Millions)	2019		2018		2017
Foreign exchange contracts	$	(26.7)	$	(10.9)	$	(12.5)

Total	$	(26.7)	$	(10.9)	$	(12.5)

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(1) Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. These amounts are included in “Costs of sales and services” on the consolidated statements of income (loss).

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis in our consolidated balance sheets.


(in Millions)	December 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets



Derivatives – Foreign exchange ⁽¹⁾	$	0.2	$	—	$	0.2	$	—

Other ⁽²⁾	20.2		20.2		—		—
Total Assets	$	20.4	$	20.2	$	0.2	$	—

Liabilities


Derivatives – Foreign exchange ⁽¹⁾	$	8.2	$	—	$	8.2	$	—
Derivatives - Interest Rate ⁽¹⁾	0.9		—		0.9		—
Other ⁽³⁾	32.8		29.7		3.1		—
Total Liabilities	$	41.9	$	29.7	$	12.2	$	—


(in Millions)	December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets


Derivatives – Foreign exchange ⁽¹⁾	$	11.7	$	—	$	11.7	$	—
Other ⁽²⁾	17.7		17.7		—		—
Total Assets	$	29.4	$	17.7	$	11.7	$	—

Liabilities


Derivatives – Foreign exchange ⁽¹⁾	$	0.1	$	—	$	0.1	$	—
Derivatives - Interest Rate ⁽¹⁾	0.2		—		0.2		—
Other ⁽³⁾	27.4		24.3		3.1		—
Total Liabilities	$	27.7	$	24.3	$	3.4	$	—

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(1)See the Fair Value of Derivative Instruments table within this Note for classifications on our consolidated balance sheets.

(2)Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheet. Both the asset and liability are recorded at fair value. Asset amounts included in “Other assets including long-term receivables, net” in the consolidated balance sheets.

(3)Primarily consists of a deferred compensation arrangement recognized on our balance sheet. Both the asset and liability are recorded at fair value. Liability amounts included in “Other long-term liabilities” in the consolidated balance sheets.

Schedule of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis in our consolidated balance sheets during the year ended December 31, 2018. There were no non-recurring fair value measurements in the consolidated balance sheets during the year ended December 31, 2019.


(in Millions)	December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) (Year Ended December 31, 2018)
Assets

Impairment of intangibles ⁽¹⁾	$	3.1	$	—	$	—	$	3.1	$	(1.8)
Total Assets	$	3.1	$	—	$	—	$	3.1	$	(1.8)

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(1) We recorded an impairment charge to write down the carrying value of the generic brand portfolio of approximately $2 million to its fair value.