Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Historically, we have entered into forward contracts to hedge our exposures associated with certain foreign currencies. At the maturity of the forward contracts, we may enter into new forward contracts 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 our 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. Our policy is to record the fair value of each derivative instrument on a gross basis. As of December 31, 2016, we had no forward contracts outstanding. As of December 31, 2017, we had outstanding forward contracts to (i) purchase $138,823 United States dollars and sell 176,000 Canadian dollars, (ii) purchase 135,000 Euros and sell $160,757 United States dollars and (iii) purchase $114,390 United States dollars and sell 96,150 Euros to hedge our foreign exchange exposures. As of December 31, 2017, we recorded a derivative asset of $1,579 as a component of Prepaid expenses and other on our Consolidated Balance Sheet and a derivative liability of $2,329 as a component of Accrued expenses on our Consolidated Balance Sheet, associated with open forward contracts as of December 31, 2017.

Net cash payments (receipts) included in cash from operating activities related to settlements associated with foreign currency forward contracts for the years ended December 31, 2015, 2016 and 2017, are as follows:

	Year Ended December 31,
	2015		2016		2017
Net payments (receipts)	$	22,705	$	—	$	(9,073	)

Losses (gains) for our derivative instruments for the years ended December 31, 2015, 2016 and 2017 are as follows:

		Amount of Loss (Gain) Recognized in Income on Derivatives
		December 31,
Derivatives Not Designated as Hedging Instruments	Location of Loss (Gain) Recognized in Income on Derivative	2015		2016		2017
Foreign exchange contracts	Other expense (income), net	$	20,294	$	—	$	(8,292	)

We have designated a portion of (i) our previously outstanding 6³/₄% Notes, (ii) our Euro denominated borrowings by IMI under our Former Revolving Credit Facility (as defined in Note 4), and (iii) our Euro Notes (as defined in Note 4) as a hedge of net investment of certain of our Euro denominated subsidiaries. For the years ended December 31, 2015, 2016 and 2017, we designated on average 34,331, 29,649 and 103,682 Euros, respectively, of the previously outstanding 6³/₄% Notes, Euro denominated borrowings by IMI under our Former Revolving Credit Facility and Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded the following foreign exchange gains (losses) 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,
	2015		2016		2017
Foreign exchange gains (losses)	$	3,284	$	1,107	$	(15,015	)

As of December 31, 2017, cumulative net gains of $3,188, net of tax, are recorded in accumulated other comprehensive items, net associated with this net investment hedge.