DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss) [Table Text Block]

The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value hedging relationships:

	Amount of pre-tax gain/(loss) included in other comprehensive income					Amounts reclassified to the Statement of Operations				Amount of pre-tax gain/(loss) included in other comprehensive income					Amounts reclassified to the Statement of Operations
	Three Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019		2018		2019		2018			2019		2018
Interest rate swap contracts	$	0.4	$	6.1		$	—	$	—	$	7.2	$	(3.6	)	$	—	$	—
Cross currency swaps	$	18.8	$	(16.2	)	$	—	$	—	$	22.8	$	8.1		$	—	$	—

Derivative Instruments And Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company addresses its exposure to market risks, principally the market risk associated with changes in interest rates and foreign currency exchange rates, through a controlled program of risk management that includes, from time to time, the use of derivative financial instruments such as interest rate and cross currency swap agreements (see Interest Rate Swap and Cross Currency Swap sections below). Although the Company’s zero-coupon subordinated notes contain features that are considered to be embedded derivative instruments (see Embedded Derivatives Related to the Zero-Coupon Subordinated Notes section below), the Company does not hold or issue derivative financial instruments for trading purposes. The derivative financial instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not believe that its exposure to market risk is material to the Company’s financial position or results of operations.

Interest Rate Swap

The Company is party to two fixed-to-variable interest rate swap agreements for its 4.625% senior notes due 2020 with an aggregate notional amount of $600.0 and variable interest rates based on one-month LIBOR plus 2.298% to hedge against changes in the fair value of a portion of the Company's long term debt. These derivative financial instruments are accounted for as fair value hedges of the senior notes due 2020. These interest rate swaps are included in other long-term assets or other long-term liabilities, as applicable, and added to or subtracted from the value of the senior notes, with an aggregate fair value of $4.1 (asset) and $3.1 (liability) at September 30, 2019, and December 31, 2018, respectively. As the specific terms and notional amounts of the derivative financial instruments match those of the fixed-rate debt being hedged, the derivative instruments are assumed to be perfectly effective hedges and accordingly, there is no impact to the Company's Condensed Consolidated Statements of Operations.

	Carrying amount of hedged liabilities as of				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities as of
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Balance Sheet Line Item in which Hedged Items are Included
Long-term debt, less current portion	$	604.1	$	597.0	$	4.1	$	(3.1	)

Cross Currency Swap

During the fourth quarter of 2018, the Company entered into six U.S. Dollar to Swiss Franc cross-currency swap agreements with an aggregate notional value of $600.0 and which are accounted for as a hedge against its net investment in a Swiss subsidiary. Of the notional value, $300.0 matures in 2022 and $300.0 matures in 2025. These cross currency swaps maturing in 2022 and 2025 are included in other long-term assets with an aggregate fair value of $8.5 and $11.5, respectively, as of September 30, 2019 and are included in other long-term liabilities with an aggregate fair value of $1.0 and $1.8, respectively, as of December 31, 2018. Changes in the fair value of the cross-currency swaps are charged or credited through accumulated other comprehensive earnings in the Condensed Consolidated Balance Sheet until the hedged item is recognized in earnings. The cumulative amount of the fair value hedging adjustment included in the current value of the cross currency swaps is $18.8 and $22.8, respectively, for the three and nine months ended September 30, 2019, and was recognized as currency translation within the Condensed Consolidated Statement of Comprehensive Earnings. There were no amounts reclassified from the Condensed Consolidated Statement of Comprehensive Earnings to the Condensed Consolidated Statement of Operations during the three months ended September 30, 2019.

The table below presents the fair value of derivatives on a gross basis and the balance sheet classification of those instruments:

		September 30, 2019						December 31, 2018
		Fair Value of Derivative						Fair Value of Derivative
	Balance Sheet Caption	Asset		Liability		U.S. Dollar Notional		Asset		Liability			U.S. Dollar Notional
Derivatives Designated as Hedging Instruments
Interest rate swap	Other assets, net or Other liabilities	$	4.1	$	—	$	600.0	$	—	$	(3.1	)	$	600.0
Cross currency swaps	Other assets, net or Other liabilities	$	20.0	$	—	$	600.0	$	—	$	(2.8	)	$	600.0

The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value hedging relationships:

	Amount of pre-tax gain/(loss) included in other comprehensive income					Amounts reclassified to the Statement of Operations				Amount of pre-tax gain/(loss) included in other comprehensive income					Amounts reclassified to the Statement of Operations
	Three Months Ended September 30,					Three Months Ended September 30,				Nine Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019		2018		2019		2018			2019		2018
Interest rate swap contracts	$	0.4	$	6.1		$	—	$	—	$	7.2	$	(3.6	)	$	—	$	—
Cross currency swaps	$	18.8	$	(16.2	)	$	—	$	—	$	22.8	$	8.1		$	—	$	—

No gains or losses from derivative instruments classified as hedging instruments have been recognized into income for the three and nine months ended September 30, 2019 and 2018.

Embedded Derivatives Related to the Zero-Coupon Subordinated Notes

The Company’s zero-coupon subordinated notes contain the following two features that are considered to be embedded derivative instruments under authoritative guidance in connection with accounting for derivative instruments and hedging activities:

1) The Company will pay contingent cash interest on the zero-coupon subordinated notes after September 11, 2006, if the average market price of the notes equals 120% or more of the sum of the issue price, accrued original issue discount and contingent additional principal, if any, for a specified measurement period.

2) Holders may surrender zero-coupon subordinated notes for conversion during any period in which the rating assigned to the zero-coupon subordinated notes by Standard & Poor’s Ratings Services is BB- or lower.

The Company believes these embedded derivatives had no fair value at September 30, 2019, and December 31, 2018. These embedded derivatives also had no impact on the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2019, and 2018.

Other Derivative Instruments

The Company periodically enters into foreign currency forward contracts, which are recognized as assets or liabilities at their fair value. These contracts do not qualify for hedge accounting and the changes in fair value are recorded directly to earnings. The contracts are short-term in nature and the fair value of these contracts is based on market prices for comparable contracts. The fair value of these contracts is not significant as of September 30, 2019, and December 31, 2018.

Schedule of Derivative Instruments [Table Text Block]

The table below presents the fair value of derivatives on a gross basis and the balance sheet classification of those instruments:

		September 30, 2019						December 31, 2018
		Fair Value of Derivative						Fair Value of Derivative
	Balance Sheet Caption	Asset		Liability		U.S. Dollar Notional		Asset		Liability			U.S. Dollar Notional
Derivatives Designated as Hedging Instruments
Interest rate swap	Other assets, net or Other liabilities	$	4.1	$	—	$	600.0	$	—	$	(3.1	)	$	600.0
Cross currency swaps	Other assets, net or Other liabilities	$	20.0	$	—	$	600.0	$	—	$	(2.8	)	$	600.0