Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

We have entered into a number of separate forward contracts to hedge our exposures in Euros, British pounds sterling and Australian dollars. As of December 31, 2014, we had outstanding forward contracts to purchase 206,000 Euros and sell $252,745 United States dollars to hedge our intercompany exposures with our European operations. As of December 31, 2015, we had no forward contracts outstanding. We may in the future enter into forward contracts, and at the maturity of any forward contract, we may enter into a new forward contract to hedge movements in the underlying currencies. At the time of settlement, we either pay or receive the net settlement amount from the forward contract and recognize this amount in other expense (income), net in the Consolidated Statements of Operations as a realized foreign exchange gain or loss. At the end of each month, we mark the outstanding forward contracts to market and record an unrealized foreign exchange gain or loss for the mark-to-market valuation. We have not designated any of the forward contracts we have entered into as hedges.

Net cash (receipts) payments included in cash from operating activities related to settlements associated with foreign currency forward contracts for the years ended December 31, 2013, 2014 and 2015, are as follows:

	Year Ended December 31,
	2013			2014		2015
Net (receipts) payments	$	(6,954	)	$	21,125	$	22,705

Our policy is to record the fair value of each derivative instrument on a gross basis. The following table provides the fair value of our derivative instruments as of December 31, 2014 and 2015 and their gains and losses for the years ended December 31, 2013, 2014 and 2015:

	Liability Derivatives
	December 31,
	2014			2015
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Accrued expenses	$	2,411	Accrued expenses	$	—
Total		$	2,411		$	—

		Amount of (Gain) Loss Recognized in Income on Derivatives
		December 31,
Derivatives Not Designated as Hedging Instruments	Location of (Gain) Loss Recognized in Income on Derivative	2013			2014		2015
Foreign exchange contracts	Other expense (income), net	$	(2,955	)	$	18,016	$	20,294
Total		$	(2,955	)	$	18,016	$	20,294

We have designated a portion of our previously outstanding 6³/₄% Notes and Euro denominated borrowings by IMI under our Revolving Credit Facility (discussed more fully in Note 4) as a hedge of net investment of certain of our Euro denominated subsidiaries. For the years ended December 31, 2013, 2014 and 2015, we designated on average 106,525, 47,730 and 34,331 Euros, respectively, of the previously outstanding 6³/₄% Notes and Euro denominated borrowings by IMI under our Revolving Credit Facility as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded the following foreign exchange (losses) gains, net of tax, related to the change in fair value of such debt due to the currency translation adjustments, which is a component of accumulated other comprehensive items, net:

	Year Ended December 31,
	2013			2014			2015
Foreign exchange (losses) gains	$	(5,311	)	$	6,385		$	3,284
Less: Tax benefit (expense) on foreign exchange (losses) gains	2,073			(57		)	—
Foreign exchange (losses) gains, net of tax	$	(3,238	)	$	6,328		$	3,284

As of December 31, 2015, cumulative net gains of $17,096, net of tax are recorded in accumulated other comprehensive items, net associated with this net investment hedge.