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Derivatives and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Instruments

The following table details the fair value of our derivative instruments included on our Condensed Consolidated Balance Sheets.

 

 

 

Cash Flow

 

 

Net Investment Hedge

 

 

Non-Designated

 

 

Total

 

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(In millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Derivative Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward

   contracts

 

$

4.2

 

 

$

3.2

 

 

$

—

 

 

$

—

 

 

$

6.3

 

 

$

25.0

 

 

$

10.5

 

 

$

28.2

 

Interest rate and currency swaps

 

 

23.1

 

 

 

44.0

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23.1

 

 

 

44.0

 

Total Derivative Assets

 

$

27.3

 

 

$

47.2

 

 

$

—

 

 

$

—

 

 

$

6.3

 

 

$

25.0

 

 

$

33.6

 

 

$

72.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward

   contracts

 

$

(2.3

)

 

$

(1.3

)

 

$

—

 

 

$

—

 

 

$

(6.4

)

 

$

(43.5

)

 

$

(8.7

)

 

$

(44.8

)

Cross-currency swaps

 

 

—

 

 

 

—

 

 

 

(29.2

)

 

 

(12.0

)

 

 

—

 

 

 

—

 

 

 

(29.2

)

 

 

(12.0

)

Total Derivative Liabilities(1)

 

$

(2.3

)

 

$

(1.3

)

 

$

(29.2

)

 

$

(12.0

)

 

$

(6.4

)

 

$

(43.5

)

 

$

(37.9

)

 

$

(56.8

)

Net Derivatives (2)

 

$

25.0

 

 

$

45.9

 

 

$

(29.2

)

 

$

(12.0

)

 

$

(0.1

)

 

$

(18.5

)

 

$

(4.3

)

 

$

15.4

 

 

(1)

Excludes €400.0 million of euro-denominated debt ($444.8 million equivalent at September 30, 2016) and €400.0 million of euro-denominated debt ($432.9 million equivalent at December 31, 2015), as of September 30, 2016 and December 31, 2015, respectively, designated as a net investment hedge.

(2)

The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification:

 

 

 

Other Current Assets

 

 

Other Current Liabilities

 

 

Other Non-current Assets

 

 

Other Non-current Liabilities

 

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(In millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Gross position

 

$

16.7

 

 

$

36.2

 

 

$

(8.7

)

 

$

(44.8

)

 

$

16.9

 

 

$

36.0

 

 

$

(29.2

)

 

$

(12.0

)

Impact of master netting

   agreements

 

 

(1.0

)

 

 

(24.1

)

 

 

1.0

 

 

 

24.1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net amounts recognized

   on the Condensed

   Consolidated Balance

   Sheet

 

$

15.7

 

 

$

12.1

 

 

$

(7.7

)

 

$

(20.7

)

 

$

16.9

 

 

$

36.0

 

 

$

(29.2

)

 

$

(12.0

)

 
Effect of Derivative Instruments on Condensed Consolidated Statements of Operations

The following table details the effect of our derivative instruments on our Condensed Consolidated Statements of Operations.

 

 

 

Amount of Gain (Loss) Recognized in

 

 

 

Earnings on Derivatives

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow Hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(1)

 

$

(1.1

)

 

$

3.0

 

 

$

(0.9

)

 

$

6.7

 

Interest rate and currency swaps(2)

 

 

(0.4

)

 

 

22.7

 

 

 

(24.6

)

 

 

32.5

 

Treasury locks(3)

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

0.1

 

Sub-total cash flow hedges

 

 

(1.5

)

 

 

25.7

 

 

 

(25.4

)

 

 

39.3

 

Fair Value Hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

0.2

 

 

 

0.1

 

 

 

0.4

 

 

 

0.3

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

(6.0

)

 

 

(3.3

)

 

 

(24.7

)

 

 

31.3

 

Total

 

$

(7.3

)

 

$

22.5

 

 

$

(49.7

)

 

$

70.9

 

  

(1)

Amounts recognized on the foreign currency forward contracts were included in cost of sales during the three and nine months ended September 30, 2016 and other income, net in the three and nine months ended September 30, 2015.

(2)

Amounts recognized on the interest rate and currency swaps for the three months ended September 30, 2016 and 2015, included a $1.2 million gain and $24.0 million gain, respectively, which is included in other income, net and interest expense of $1.5 million and $1.4 million, respectively, related to the hedge of the interest payments. Amounts recognized on the interest rate and currency swaps for the nine months ended September 30, 2016 and 2015, included a $20.5 million loss and $37.2 million gain, respectively, which is included in other income, net and interest expense of $4.0 million and $4.8 million, respectively, related to the hedge of the interest payments.

(3)

Amounts recognized on the treasury locks were included in interest expense which is related to amortization of terminated interest rate swaps.