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Derivatives and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2017
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

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

(In millions)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Derivative Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward

   contracts(2)

 

$

1.7

 

 

$

4.9

 

 

$

—

 

 

$

—

 

 

$

18.2

 

 

$

11.4

 

 

$

19.9

 

 

$

16.3

 

Interest rate and currency swaps(2)

 

 

20.0

 

 

 

23.9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

20.0

 

 

 

23.9

 

Total Derivative Assets

 

$

21.7

 

 

$

28.8

 

 

$

—

 

 

$

—

 

 

$

18.2

 

 

$

11.4

 

 

$

39.9

 

 

$

40.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward

   contracts(2)

 

$

(0.9

)

 

$

(0.1

)

 

$

—

 

 

$

—

 

 

$

(1.9

)

 

$

(11.5

)

 

$

(2.8

)

 

$

(11.6

)

Cross-currency swaps

 

 

—

 

 

 

—

 

 

 

(7.0

)

 

 

(5.3

)

 

 

—

 

 

 

—

 

 

 

(7.0

)

 

 

(5.3

)

Total Derivative Liabilities(1)

 

$

(0.9

)

 

$

(0.1

)

 

$

(7.0

)

 

$

(5.3

)

 

$

(1.9

)

 

$

(11.5

)

 

$

(9.8

)

 

$

(16.9

)

Net Derivatives (3)

 

$

20.8

 

 

$

28.7

 

 

$

(7.0

)

 

$

(5.3

)

 

$

16.3

 

 

$

(0.1

)

 

$

30.1

 

 

$

23.3

 

 

(1)

Excludes €400.0 million of euro-denominated debt ($423.1 million equivalent at March 31, 2017 and $416.7 million equivalent at December 31, 2016), designated as a net investment hedge.

(2)

Amounts related to Diversey have been classified as held for sale on the Condensed Consolidated Balance Sheet. As of March 31, 2017, $0.9 million related to foreign currency forward contracts and $20.0 million related to interest rate and currency swaps were reclassified to assets held for sale. As of December 31, 2016, $(1.4) million related to foreign currency forward contracts were reclassified to liabilities held for sale and $23.9 million related to interest rate and currency swaps were reclassified to assets held for sale. These financial instruments have been classified as Level 2 Inputs. Refer to Note 12 “Fair Value Measurements and Other Financial Instruments” for discussion of the inputs and valuation techniques used.

(3)

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

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

(In millions)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Gross position

 

$

25.3

 

 

$

22.6

 

 

$

(2.8

)

 

$

(11.6

)

 

$

14.6

 

 

$

17.6

 

 

$

(7.0

)

 

$

(5.3

)

Reclassified to held for sale(1)

 

 

(6.4

)

 

 

(7.3

)

 

 

0.1

 

 

 

2.3

 

 

 

(14.6

)

 

 

(17.6

)

 

 

—

 

 

 

—

 

Impact of master netting agreements

 

 

(0.3

)

 

 

(0.2

)

 

 

0.3

 

 

 

0.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net amounts recognized on the

   Condensed Consolidated

   Balance Sheet

 

$

18.6

 

 

$

15.1

 

 

$

(2.4

)

 

$

(9.1

)

 

$

—

 

 

$

—

 

 

$

(7.0

)

 

$

(5.3

)

 
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

 

 

 

March 31,

 

(In millions)

 

2017

 

 

2016

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

Cash Flow Hedges:

 

 

 

 

 

 

 

 

Foreign currency forward contracts(1)(3)

 

$

0.6

 

 

$

1.7

 

Interest rate and currency swaps(3)

 

 

(3.8

)

 

 

(10.9

)

Treasury locks(2)

 

 

0.1

 

 

 

0.1

 

Sub-total cash flow hedges

 

 

(3.1

)

 

 

(9.1

)

Fair Value Hedges:

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

0.1

 

 

 

0.1

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

 

9.0

 

 

 

(10.6

)

Total

 

$

6.0

 

 

$

(19.6

)

  

(1)

Amounts recognized on the foreign currency forward contracts were included in cost of sales during the three months ended March 31, 2017 and 2016.

(2)

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

(3)

Amounts related to Diversey have been reclassified to earnings from discontinued operations before income tax provision on the Condensed Consolidated Statement of Operations. For the three months ended March 31, 2017 and 2016 $0.5 million of expense and $6.6 million of expense was reclassified, respectively.