XML 47 R37.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivatives and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 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
(In millions)
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
Derivative Assets
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Foreign currency
   forward contracts(2)
$
0.4

 
$
4.9

 
$
—

 
$
—

 
$
10.1

 
$
11.4

 
$
10.5

 
$
16.3

Interest rate
   currency swaps(2)
23.3

 
23.9

 
—

 
—

 
—

 
—

 
23.3

 
23.9

Total Derivative
   Assets
$
23.7

 
$
28.8

 
$
—

 
$
—

 
$
10.1

 
$
11.4

 
$
33.8

 
$
40.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Liabilities
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Foreign currency
   forward contracts(2)
$
(2.0
)
 
$
(0.1
)
 
$
—

 
$
—

 
$
(15.9
)
 
$
(11.5
)
 
$
(17.9
)
 
$
(11.6
)
Cross-currency swaps
—

 
—

 
(42.1
)
 
(5.3
)
 
—

 
—

 
(42.1
)
 
(5.3
)
Total Derivative
   Liabilities(1)
$
(2.0
)
 
$
(0.1
)
 
$
(42.1
)
 
$
(5.3
)
 
$
(15.9
)
 
$
(11.5
)
 
$
(60.0
)
 
$
(16.9
)
Net Derivatives(3)
$
21.7

 
$
28.7

 
$
(42.1
)
 
$
(5.3
)
 
$
(5.8
)
 
$
(0.1
)
 
$
(26.2
)
 
$
23.3

 
(1) 
Excludes €400.0 million of euro-denominated debt ($453.9 million equivalent at June 30, 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 June 30, 2017, $(1.5) million related to foreign currency forward contracts and $23.3 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
(In millions)
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
Gross position
$
16.8

 
$
22.6

 
$
(18.0
)
 
$
(11.6
)
 
$
17.1

 
$
17.6

 
$
(42.1
)
 
$
(5.3
)
Reclassified to held for
   sale(1)
(6.5
)
 
(7.3
)
 
1.8

 
2.3

 
(17.1
)
 
(17.6
)
 
—

 
—

Impact of master netting
   agreements
(0.1
)
 
(0.2
)
 
0.1

 
0.2

 
—

 
—

 
—

 
—

Net amounts recognized
   on the Condensed
   Consolidated
   Balance Sheet
$
10.2

 
$
15.1

 
$
(16.1
)
 
$
(9.1
)
 
$
—

 
$
—

 
$
(42.1
)
 
$
(5.3
)
 
(1) 
Amounts related to Diversey have been classified as held for sale on the Condensed Consolidated Balance Sheet.
Offsetting Assets
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
(In millions)
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
Gross position
$
16.8

 
$
22.6

 
$
(18.0
)
 
$
(11.6
)
 
$
17.1

 
$
17.6

 
$
(42.1
)
 
$
(5.3
)
Reclassified to held for
   sale(1)
(6.5
)
 
(7.3
)
 
1.8

 
2.3

 
(17.1
)
 
(17.6
)
 
—

 
—

Impact of master netting
   agreements
(0.1
)
 
(0.2
)
 
0.1

 
0.2

 
—

 
—

 
—

 
—

Net amounts recognized
   on the Condensed
   Consolidated
   Balance Sheet
$
10.2

 
$
15.1

 
$
(16.1
)
 
$
(9.1
)
 
$
—

 
$
—

 
$
(42.1
)
 
$
(5.3
)
 
(1) 
Amounts related to Diversey have been classified as held for sale on the Condensed Consolidated Balance Sheet.
Offsetting Liabilities
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
(In millions)
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
 
June 30,
2017
 
December 31, 2016
Gross position
$
16.8

 
$
22.6

 
$
(18.0
)
 
$
(11.6
)
 
$
17.1

 
$
17.6

 
$
(42.1
)
 
$
(5.3
)
Reclassified to held for
   sale(1)
(6.5
)
 
(7.3
)
 
1.8

 
2.3

 
(17.1
)
 
(17.6
)
 
—

 
—

Impact of master netting
   agreements
(0.1
)
 
(0.2
)
 
0.1

 
0.2

 
—

 
—

 
—

 
—

Net amounts recognized
   on the Condensed
   Consolidated
   Balance Sheet
$
10.2

 
$
15.1

 
$
(16.1
)
 
$
(9.1
)
 
$
—

 
$
—

 
$
(42.1
)
 
$
(5.3
)
 
(1) 
Amounts related to Diversey have been classified as held for sale on the Condensed Consolidated Balance Sheet.
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
June 30,
 
Six Months Ended
June 30,
(In millions)
 
2017
 
2016
 
2017
 
2016
Derivatives designated as hedging instruments:
 
 

 
 

 
 

 
 

Cash Flow Hedges:
 
 

 
 

 
 

 
 

Foreign currency forward contracts(1)(4)
 
$
1.3

 
$
(1.5
)
 
$
1.9

 
$
0.2

Interest rate and currency swaps(2)(4)
 
2.7

 
(13.3
)
 
(1.1
)
 
(24.2
)
Treasury locks(3)
 
—

 
—

 
0.1

 
0.1

Sub-total cash flow hedges
 
4.0

 
(14.8
)
 
0.9

 
(23.9
)
Fair Value Hedges:
 
 

 
 

 
 

 
 

Interest rate swaps
 
0.1

 
—

 
0.2

 
0.2

Derivatives not designated as hedging instruments:
 
 

 
 

 
 

 
 

Foreign currency forward contracts(4)
 
(3.4
)
 
(8.1
)
 
5.6

 
(18.7
)
Total
 
$
0.7

 
$
(22.9
)
 
$
6.7

 
$
(42.4
)
 
(1) 
Amounts recognized on the foreign currency forward contracts were included in cost of sales during the three and six months ended June 30, 2017 and other (expense) income, net in the three and six months ended June 30, 2016.
(2) 
Amounts recognized on the interest rate and currency swaps for the  three months ended June 30, 2017 and 2016, included a $3.6 million gain and $11.9 million loss, respectively, which is included in other (expense) income, net and interest (expense) income of $(1.0) 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 six months ended June 30, 2017 and 2016, included a $1.0 million gain and $21.7 million loss, respectively, which is included in other (expense) income, net and interest (expense) income of $(2.1) million and $2.4 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.
(4) 
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 June 30, 2017 and June 30, 2016 there was $4.5 million and $(13.0) million reclassified, respectively. For the six months ended June 30, 2017 and June 30, 2016 there was $5.0 million and $(19.6) million reclassified, respectively.