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Derivatives
12 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives
Derivatives
 
In the normal course of business, the Company is exposed to foreign currency exchange rate risk and interest rate risk on its variable-rate debt. To manage these risks, the Company utilizes a variety of practices including, where considered appropriate, derivative instruments. The Company has no derivative instruments for trading or speculative purposes nor any derivatives with credit risk-related contingent features. All derivative instruments used by the Company are either exchange traded or are entered into with major financial institutions in order to reduce credit risk and risk of nonperformance by third parties. The fair values of the Company’s derivative instruments are determined using observable inputs and are considered Level 2 assets or liabilities.
 
The Company utilizes currency forward, swap and, to a lesser extent, option contracts to selectively hedge its exposure to foreign currency risk when it is practical and economical to do so. The use of these contracts minimizes transactional exposure to exchange rate changes. We designate certain of our foreign currency hedges as cash flow hedges. Changes in the fair value of cash flow hedges are reported as a component of other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. For foreign exchange contracts not designated as cash flow hedges, changes in the contracts’ fair value are recorded to net income each period.

The Company selectively hedges its exposure to interest rate increases on variable-rate, long-term debt when it is practical and economical to do so. Changes in the fair value of interest rate contracts considered cash flow hedges are reported as a component of other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings.

The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2013 ($ in millions):
 
 
Asset Derivatives
 
Liability Derivatives
 
Balance Sheet
Location
 
Fair
Value
 
Balance Sheet
Location
 
Fair
Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
Accounts Receivable
 
$

 
Accrued Expenses
 
$
6.5

Foreign exchange contracts
Other Assets
 

 
Other Liabilities
 
2.1

Interest rate contracts
Other Assets
 
0.5

 
Other Liabilities
 

Total derivatives designated as hedges
 
 
$
0.5

 
 
 
$
8.6

 
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2012 ($ in millions):
 
 
Asset Derivatives
 
Liability Derivatives
 
Balance Sheet
Location
 
Fair
Value
 
Balance Sheet
Location
 
Fair
Value
Derivatives designated as hedges:
 
 
 
 
 
 
 
Foreign exchange contracts
Accounts Receivable
 
$
0.4

 
Accrued Expenses
 
$

Foreign exchange contracts
Other Assets
 

 
Other Liabilities
 
3.5

Total derivatives designated as hedges
 
 
$
0.4

 
 
 
$
3.5



The following table provides the effect derivative instruments in cash flow hedging relationships had on accumulated other comprehensive income (loss), or AOCI, and results of operations ($ in millions):
Derivatives Designated as Cash Flow Hedging Relationships
Loss (Gain) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31,
 
Location of Reclassification
(Loss) Gain Reclassified
from AOCI
 
2013
 
2012
 
2011
 
 
2013
 
2012
 
2011
Foreign exchange contracts
$
(7.0
)
 
$
(1.8
)
 
$
(4.9
)
 
Net Sales
$
(0.4
)
 
$
1.4

 
$
5.5

Interest rate contracts
0.3

 

 

 
Interest Expense

 

 

Total
$
(6.7
)
 
$
(1.8
)
 
$
(4.9
)
 
Total
$
(0.4
)
 
$
1.4

 
$
5.5



The Company's designated derivative instruments are perfectly effective. As such, related to the hedge ineffectiveness or amounts excluded from hedge effectiveness testing, there were no gains or losses recognized immediately in income for the years ended December 31, 2013, 2012 or 2011.

The following table provides the effect derivative instruments not designated as hedging instruments had on net income ($ in millions):
Derivatives Not Designated as Cash Flow Hedging Instruments
Amount of Gain / (Loss) Recognized in Other Income / Expense
 
 
2013
 
2012
 
2011
Interest rate contracts
 
$

 
$
(0.1
)
 
$
0.5

Foreign exchange contracts
 
(0.1
)
 
(1.0
)
 
2.6

Total
 
$
(0.1
)
 
$
(1.1
)
 
$
3.1