XML 37 R27.htm IDEA: XBRL DOCUMENT v3.4.0.3
Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2016
Investments, All Other Investments [Abstract]  
Carrying Amount and Estimated Fair Values of Financial Instruments
The amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at March 31, 2016 and December 31, 2015 consisted of the following: 
 
March 31, 2016
 
December 31, 2015
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
(DOLLARS IN THOUSANDS)
 
 
 
 
 
 
 
Cash and cash equivalents (1)
$
528,877

 
$
528,877

 
$
181,988

 
$
181,988

Credit facilities and bank overdrafts (2)
14,965

 
14,965

 
142,105

 
142,105

Long-term debt: (3)
 
 
 
 
 
 
 
Senior notes - 2006
125,000

 
126,861

 
125,000

 
127,717

Senior notes - 2007
500,000

 
572,663

 
500,000

 
563,855

Senior notes - 2013
299,816

 
301,249

 
299,809

 
290,830

Senior notes - 2016
561,070

 
578,271

 
—

 
—

 
(1)
The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments.
(2)
The carrying amount of our credit facilities and bank overdrafts approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments.
(3)
The fair value of our long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on our own credit risk.
Derivative Instruments Notional Amount Outstanding
The following table shows the notional amount of the Company’s derivative instruments outstanding as of March 31, 2016 and December 31, 2015: 
(DOLLARS IN THOUSANDS)
March 31, 2016
 
December 31, 2015
Foreign currency contracts
$
298,000

 
$
256,200

Interest rate swaps
$
775,000

 
$
775,000
Derivative Instruments Measured at Fair Value
The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015: 
 
March 31, 2016
(DOLLARS IN THOUSANDS)
Fair Value of
Derivatives
Designated as
Hedging
Instruments
 
Fair Value of
Derivatives Not
Designated as
Hedging
Instruments
 
Total Fair
Value
Derivative assets (a)
 
 
 
 
 
Foreign currency contracts
$
1,912

 
$
3,340

 
$
5,252

Interest rate swaps
3,692

 
—

 
3,692

 
$
5,604

 
$
3,340

 
$
8,944

Derivative liabilities (b)
 
 
 
 
 
Foreign currency contracts
$
7,530

 
$
4,174

 
$
11,704

 
$
7,530

 
$
4,174

 
$
11,704

 
December 31, 2015
(DOLLARS IN THOUSANDS)
Fair Value of
Derivatives
Designated as
Hedging
Instruments
 
Fair Value of
Derivatives Not
Designated as
Hedging
Instruments
 
Total Fair
Value
Derivative assets (a)
 
 
 
 
 
Foreign currency contracts
$
6,560

 
$
3,700

 
$
10,260

Interest rate swaps
1,210

 
—

 
1,210

 
$
7,770

 
$
3,700

 
$
11,470

Derivative liabilities (b)
 
 
 
 
 
Foreign currency contracts
$
2,106

 
$
3,022

 
$
5,128

 
(a)
Derivative assets are recorded to Prepaid expenses and other current assets in the Consolidated Balance Sheet.
(b)
Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet.
Derivative Instruments Which Were Not Designated as Hedging Instruments
The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statement of Comprehensive Income for the three months ended March 31, 2016 and 2015 (in thousands): 

Derivatives Not Designated as Hedging Instruments
Amount of Gain (Loss)
Recognized in Income on
Derivative
 
Location of Gain (Loss)
Recognized in Income
on Derivative
 
Three Months Ended March 31,
 
 
 
2016
 
2015
 
 
Foreign currency contracts
$
(4,943
)
 
$
9,704

 
Other expense (income), net
Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments
The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments in the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2016 and 2015 (in thousands): 
 
Amount of (Loss) Gain
Recognized in OCI on
Derivative (Effective
Portion)
 
Location of (Loss) Gain
Reclassified from AOCI into
Income (Effective Portion)
 
Amount of (Loss) Gain
Reclassified from
Accumulated OCI into
Income (Effective
Portion)
 
Three Months Ended March 31,
 
 
 
Three Months Ended March 31,
 
2016
 
2015
 
 
 
2016
 
2015
Derivatives in Cash Flow Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
(7,003
)
 
12,014

 
Cost of goods sold
 
2,616

 
1,023

Interest rate swaps (1)
(3,175
)
 
69

 
Interest expense
 
(86
)
 
(69
)
Derivatives in Net Investment Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
(2,404
)
 
4,561

 
N/A
 
—

 
—

Total
$
(12,582
)
 
$
16,644

 
 
 
$
2,530

 
$
954

 
(1) Interest rate swaps were entered into as pre-issuance hedges.