Derivatives and Hedging

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING

DERIVATIVES AND HEDGING

The Company enters into a limited number of derivative contracts to mitigate the cash flow risk associated with changes in interest rates on variable rate debt and changes in foreign exchange rates on forecasted foreign currency transactions. The Company accounts for its outstanding derivative contracts in accordance with FASB ASC Topic No. 815, which requires all derivatives, including derivatives designated as accounting hedges, to be recorded on the balance sheet at fair value. The following tables provide information regarding the Company’s outstanding derivatives contracts as of and for the years ended December 31 (in thousands, except for number of outstanding contracts):

2016

Derivative Contract Type	Number of Outstanding Contracts	Contract Notional Amount		Fair Value Asset (Liability) (3)			Balance Sheet Line Item	AOCI Unrealized (Loss), Net Of Tax
Interest rate swaps (1)	3	$	700,000	$	(2,349	)	Other liabilities	$	(1,409	)
Foreign currency forwards (2)	84	86,946		(320		)	Other current assets	—
Total	87	$	786,946	$	(2,669	)		$	(1,409	)

2015

Derivative Contract Type	Number of Outstanding Contracts	Contract Notional Amount		Fair Value Asset (Liability) (3)			Balance Sheet Line Item	AOCI Unrealized (Loss), Net Of Tax
Interest rate swap (1)	3	$	700,000	$	(5,132	)	Other liabilities	$	(3,079	)
Foreign currency forwards (2)	102	193,610		235			Other current assets	—
Total	105	$	893,610	$	(4,897	)		$	(3,079	)

(1) The swaps have been designated and are accounted for as cash flow hedges of the forecasted interest payments on borrowings. As a result, changes in the fair value of the swaps are deferred and are recorded in AOCL/I, net of tax effect (see Note 5 — Debt for additional information).

(2) The Company has foreign exchange transaction risk since it typically enters into transactions in the normal course of business that are denominated in foreign currencies that differ from the local functional currency. The Company enters into short-term foreign currency forward exchange contracts to mitigate the cash flow risk associated with changes in foreign currency rates on forecasted foreign currency transactions. These contracts are accounted for at fair value with realized and unrealized gains and losses recognized in Other expense, net since the Company does not designate these contracts as hedges for accounting purposes. All of the outstanding contracts at December 31, 2016 matured by the end of January 2017.

(3) See Note 12 — Fair Value Disclosures for the determination of the fair value of these instruments.

At December 31, 2016, the Company’s derivative counterparties were investment grade financial institutions. The Company did not have any collateral arrangements with its derivative counterparties, and none of the derivative contracts contained credit-risk related contingent features. The following table provides information regarding amounts recognized in the Consolidated Statements of Operations for derivative contracts for the years ended December 31 (in millions):  

Amount recorded in:	2016		2015		2014
Interest expense (1)	$	7.6	$	8.5	$	4.1
Other expense (income), net (2)	0.3		0.1		(0.5		)
Total expense	$	7.9	$	8.6	$	3.6

(1) Consists of interest expense from interest rate swap contracts.

(2) Consists of realized and unrealized gains and losses on foreign currency forward contracts.