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FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following summarizes the notional amounts of cash flow hedges by derivative instrument type at June 30, 2020 and the notional amounts expected to mature during the next 12 months, with a discussion of the various cash flow hedges by derivative instrument type following the table:


(in millions)	Aggregate Notional Amount		Aggregate Notional Amount Maturing within 12 Months

Foreign exchange forward contracts	$	312.9	$	226.1


Total derivative instruments designated as cash flow hedges	$	312.9	$	226.1

The notional amount of hedges of net investments by derivative instrument type at June 30, 2020 and the notional amounts expected to mature during the next 12 months were as follows:


(in millions)	Aggregate Notional Amount		Aggregate Notional Amount Maturing within 12 Months





Cross currency basis swaps	$	295.7	$	—
Total for instruments designated as hedges of net investment	$	295.7	$	—

The notional amounts of fair value hedges by derivative instrument type at June 30, 2020 and the notional amounts expected to mature during the next 12 months were as follows:


(in millions)	Aggregate Notional Amount		Aggregate Notional Amount Maturing within 12 Months

Foreign exchange forward contracts	$	94.5	$	57.9
Total derivative instruments as fair value hedges	$	94.5	$	57.9

Derivative Instruments, Gain (Loss)


	Six Months Ended June 30, 2020
	Gain (Loss) in AOCI		Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)		Ineffective Portion Recognized in Income (Expense)

(in millions)

Effective Portion:
Foreign exchange forward contracts	$	3.8	Cost of products sold	$	1.3	$	—
Interest rate swaps	(19.7)		Interest expense	(1.4)		—

Ineffective Portion:
Foreign exchange forward contracts	—		Cost of products sold	—		1.5
Total in cash flow hedging	$	(15.9)		$	(0.1)	$	1.5

Gains and losses recorded in AOCI in the Consolidated Balance Sheets, Interest expense and Other expense (income), net in the Company’s Consolidated Statements of Operations related to the hedges of net investments for the three months ended June 30, 2020 and 2019 were as follows:


	Three Months Ended June 30, 2020
	Gain (Loss) in AOCI		Consolidated Statements of Operations Location	Recognized in Income (Expense)

(in millions)

Effective Portion:
Cross currency basis swaps	$	(5.4)	Interest expense	$	2.1

Foreign exchange forward contracts	(9.5)		Other expense (income), net	0.4

Total for net investment hedging	$	(14.9)		$	2.5

	Three Months Ended June 30, 2019
(in millions)	Gain (Loss) in AOCI		Consolidated Statements of Operations Locations	Recognized in Income (Expense)

Effective Portion:
Cross currency basis swaps	$	(2.5)	Interest expense	$	2.1

Foreign exchange forward contracts	(9.4)		Other expense (income), net	6.1

Total for net investment hedging	$	(11.9)		$	8.2

Gains and losses recorded in AOCI in the Consolidated Balance Sheets, Interest expense and Other expense (income), net in the Company's Consolidated Statements of Operations related to the hedges of net investments for the six months ended June 30, 2020 and 2019 were as follows:


	Six Months Ended June 30, 2020
	Gain (Loss) in AOCI		Consolidated Statements of Operations Location	Recognized in Income (Expense)

(in millions)

Effective Portion:
Cross currency basis swaps	$	3.4	Interest expense	$	4.4

Foreign exchange forward contracts	6.4		Other expense (income), net	6.2

Total for net investment hedging	$	9.8		$	10.6

	Six Months Ended June 30, 2019
(in millions)	Gain (Loss) in AOCI		Consolidated Statements of Operations Location	Recognized in Income (Expense)

Effective Portion:
Cross currency basis swaps	$	0.6	Interest expense	$	4.1

Foreign exchange forward contracts	6.1		Other expense (income), net	9.6

Total for net investment hedging	$	6.7		$	13.7

Schedule of Aggregate Notional Amounts of Economic Hedges Not Designated as Hedges

The aggregate notional amounts of the Company’s economic hedges not designated as hedges by derivative instrument types at June 30, 2020 and the notional amounts expected to mature during the next 12 months were as follows:


(in millions)	Aggregate Notional Amount		Aggregate Notional Amount Maturing within 12 Months

Foreign exchange forward contracts	$	334.0	$	334.0



Total for instruments not designated as hedges	$	334.0	$	334.0

Fair Value, by Balance Sheet Grouping

The fair value and the location of the Company's derivatives in the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 were as follows:


	June 30, 2020
(in millions)	Prepaid Expenses and Other Current Assets, Net		Other Noncurrent Assets, Net		Accrued Liabilities		Other Noncurrent Liabilities

Designated as Hedges:
Foreign exchange forward contracts	$	6.5	$	3.3	$	0.2	$	0.7

Cross currency basis swaps	—		10.3		—		—
Total	$	6.5	$	13.6	$	0.2	$	0.7

Not Designated as Hedges:
Foreign exchange forward contracts	$	2.4	$	—	$	1.0	$	—
Total	$	2.4	$	—	$	1.0	$	—

	December 31, 2019
(in millions)	Prepaid Expenses and Other Current Assets, Net		Other Noncurrent Assets, Net		Accrued Liabilities		Other Noncurrent Liabilities

Designated as Hedges:
Foreign exchange forward contracts	$	26.9	$	11.3	$	1.3	$	1.8
Interest rate swaps	—		—		—		10.8
Cross currency basis swaps	—		6.9		—		—
Total	$	26.9	$	18.2	$	1.3	$	12.6

Not Designated as Hedges:
Foreign exchange forward contracts	$	2.0	$	—	$	1.5	$	—
Total	$	2.0	$	—	$	1.5	$	—

Offsetting Derivative Assets and Liabilities


							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received/Pledged		Net Amount

Assets
Foreign exchange forward contracts	$	12.2	$	—	$	12.2	$	(0.8)	$	—	$	11.4


Cross currency basis swaps	10.3		—		10.3		(0.8)		—		9.5

Total assets	$	22.5	$	—	$	22.5	$	(1.6)	$	—	$	20.9

Liabilities
Foreign exchange forward contracts	$	1.9	$	—	$	1.9	$	(1.6)	$	—	$	0.3




Total liabilities	$	1.9	$	—	$	1.9	$	(1.6)	$	—	$	0.3

Offsetting of financial assets and liabilities under netting arrangements at December 31, 2019 were as follows:



							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received/Pledged		Net Amount

Assets
Foreign exchange forward contracts	$	38.8	$	—	$	38.8	$	(7.8)	$	—	$	31.0


Cross currency basis swaps	6.9		—		6.9		(0.9)		—		6.0
Total assets	$	45.7	$	—	$	45.7	$	(8.7)	$	—	$	37.0

Liabilities
Foreign exchange forward contracts	$	3.2	$	—	$	3.2	$	(3.0)	$	—	$	0.2

Interest rate swaps	10.8		—		10.8		(5.7)		—		5.1


Total liabilities	$	14.0	$	—	$	14.0	$	(8.7)	$	—	$	5.3

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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