XML 29 R19.htm IDEA: XBRL DOCUMENT v3.21.2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 3 Months Ended
Jun. 30, 2021
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:
Amount of pre-tax gain/(loss) included in other comprehensive incomeAmounts reclassified to the
Statement of Operations		Amount of pre-tax gain/(loss) included in other comprehensive incomeAmounts reclassified to the
Statement of Operations
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
20212020202120202021202020212020
Interest rate swap contracts$— $(0.9)$— $— $— $0.9 $— $— 
Cross currency swaps$(13.6)$(8.8)$— $— $23.7 $11.1 $— $— 
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. The Company does not hold or issue derivative financial instruments for trading purposes. 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 Swaps
During the second quarter of 2021, the Company entered into fixed-to-variable interest rate swap agreements for its 2.70% senior notes due 2031 with an aggregate notional amount of $500.0 and variable interest rates based on three-month LIBOR plus 1.0706%. These agreements were designated as hedges against changes in the fair value of a portion of the Company's long-term debt. The aggregate fair value of $9.5 at June 30, 2021 was included as a component of other long-term assets and added to the reported value of the senior notes.
Cross Currency Swaps
During the fourth quarter of 2018, the Company entered into U.S. Dollar to Swiss Franc cross-currency swap agreements with an aggregate notional value of $600.0. These instruments are designated as a hedge against the impact of foreign exchange movements on its net investment in a Swiss subsidiary. Of the notional value, $300.0 matures in 2022 and $300.0 matures in 2025. The cross currency swaps maturing in 2022 and 2025 with an aggregate fair value of $(13.2) and $(3.5) as of June 30, 2021, respectively, are included in other long-term liabilities. The cross currency swaps maturing in 2022 and 2025 with an aggregate fair value of $(26.0) and $(14.4) as of December 31, 2020, respectively, are included in other long-term liabilities. Changes in the fair value of the cross-currency swaps are recorded as a component of the foreign currency translation adjustment in accumulated other comprehensive income in the Condensed Consolidated Balance Sheet until the hedged item is recognized in earnings. The cumulative change in the fair value of these instruments of $(13.6) and $23.7 for the three and six months ended June 30, 2021, respectively, 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 or six months ended June 30, 2021.
The table below presents the fair value of derivatives on a gross basis and the balance sheet classification of those instruments:
June 30, 2021December 31, 2020
Fair Value of DerivativeFair Value of Derivative
 Balance Sheet CaptionAssetLiabilityU.S. Dollar NotionalAssetLiabilityU.S. Dollar Notional
Derivatives Designated as Hedging Instruments
Interest rate swapOther assets, net$9.5 — $500.0 — — — 
Cross currency swapsOther assets, net or Other liabilities$— $16.6 $600.0 $— $40.4 $600.0 
The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value hedging:
Amount of pre-tax gain/(loss) included in other comprehensive incomeAmounts reclassified to the
Statement of Operations		Amount of pre-tax gain/(loss) included in other comprehensive incomeAmounts reclassified to the
Statement of Operations
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
20212020202120202021202020212020
Interest rate swap contracts$— $(0.9)$— $— $— $0.9 $— $— 
Cross currency swaps$(13.6)$(8.8)$— $— $23.7 $11.1 $— $— 
No gains or losses from derivative instruments have been recognized into income for the three and six months ended June 30, 2021, and 2020.
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:
June 30, 2021December 31, 2020
Fair Value of DerivativeFair Value of Derivative
 Balance Sheet CaptionAssetLiabilityU.S. Dollar NotionalAssetLiabilityU.S. Dollar Notional
Derivatives Designated as Hedging Instruments
Interest rate swapOther assets, net$9.5 — $500.0 — — — 
Cross currency swapsOther assets, net or Other liabilities$— $16.6 $600.0 $— $40.4 $600.0