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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
6 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Financial Instruments Used to Manage Currency Exchange Rate Risk and Interest Rate Risk
The Company uses derivative financial instruments to manage its currency exchange rate risk and its interest rate risk, as summarized below. It is the Company's policy not to enter into derivative financial instruments for speculative purposes. Notional amounts are stated in United States dollar equivalents at spot exchange rates at the respective dates.
 
Notional Amount
 
June 30, 2017
 
December 31, 2016
 
(in millions)
Foreign currency forward exchange contracts
$
1,037.7

 
$
949.7

Interest rate swap agreements
300.0

 
300.0

Schedule of Location and Fair Value Amounts of Derivative Instruments Reported in Consolidated Condensed Balance Sheets
The following table presents the location and fair value amounts of derivative instruments reported in the consolidated condensed balance sheets (in millions):
 
 
 
 
Fair Value
Derivatives designated as hedging instruments
 
Balance Sheet
Location
 
June 30, 2017
 
December 31, 2016
Assets
 
 
 
 

 
 

Foreign currency contracts
 
Other current assets
 
$
9.1

 
$
28.6

Interest rate swap agreements
 
Other assets
 
$
0.6

 
$
0.4

Liabilities
 
 
 
 

 
 

Foreign currency contracts
 
Accrued and other liabilities
 
$
15.4

 
$
3.3

Derivatives not designated as hedging instruments
 
 
 
 

 
 

Assets
 
 
 
 

 
 

Foreign currency contracts
 
Other current assets
 
$

 
$
6.2

Schedule of Effect of Master-Netting Agreements and Rights of Offset, Derivative Assets
The following table presents the effect of master-netting agreements and rights of offset on the consolidated condensed balance sheets (in millions):
 
 
 
 
 
 
 
Gross Amounts
Not Offset in
the Consolidated
Balance Sheet
 
 
 
 
 
Gross Amounts
Offset in the
Consolidated
Balance Sheet
 
 
 
 
 
 
 
Net Amounts
Presented in the
Consolidated
Balance Sheet
 
 
June 30, 2017
Gross
Amounts
 
Financial
Instruments
 
Cash
Collateral
Received
 
Net
Amount
Derivative assets
 

 
 

 
 

 
 

 
 

 
 

Foreign currency contracts
$
9.1

 
$

 
$
9.1

 
$
(7.3
)
 
$

 
$
1.8

Interest rate swap agreements
$
0.6

 
$

 
$
0.6

 
$

 
$

 
$
0.6

Derivative liabilities
 

 
 

 
 

 
 

 
 

 
 

Foreign currency contracts
$
15.4

 
$

 
$
15.4

 
$
(7.3
)
 
$

 
$
8.1

December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

Derivative assets
 

 
 

 
 

 
 

 
 

 
 

Foreign currency contracts
$
34.8

 
$

 
$
34.8

 
$
(3.3
)
 
$

 
$
31.5

Interest rate swap agreements
$
0.4

 
$

 
$
0.4

 
$

 
$

 
$
0.4

Derivative liabilities
 

 
 

 
 

 
 

 
 

 
 

Foreign currency contracts
$
3.3

 
$

 
$
3.3

 
$
(3.3
)
 
$

 
$

Schedule of Effect of Master-Netting Agreements and Rights of Offset, Derivative Liabilities
The following table presents the effect of master-netting agreements and rights of offset on the consolidated condensed balance sheets (in millions):
 
 
 
 
 
 
 
Gross Amounts
Not Offset in
the Consolidated
Balance Sheet
 
 
 
 
 
Gross Amounts
Offset in the
Consolidated
Balance Sheet
 
 
 
 
 
 
 
Net Amounts
Presented in the
Consolidated
Balance Sheet
 
 
June 30, 2017
Gross
Amounts
 
Financial
Instruments
 
Cash
Collateral
Received
 
Net
Amount
Derivative assets
 

 
 

 
 

 
 

 
 

 
 

Foreign currency contracts
$
9.1

 
$

 
$
9.1

 
$
(7.3
)
 
$

 
$
1.8

Interest rate swap agreements
$
0.6

 
$

 
$
0.6

 
$

 
$

 
$
0.6

Derivative liabilities
 

 
 

 
 

 
 

 
 

 
 

Foreign currency contracts
$
15.4

 
$

 
$
15.4

 
$
(7.3
)
 
$

 
$
8.1

December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

Derivative assets
 

 
 

 
 

 
 

 
 

 
 

Foreign currency contracts
$
34.8

 
$

 
$
34.8

 
$
(3.3
)
 
$

 
$
31.5

Interest rate swap agreements
$
0.4

 
$

 
$
0.4

 
$

 
$

 
$
0.4

Derivative liabilities
 

 
 

 
 

 
 

 
 

 
 

Foreign currency contracts
$
3.3

 
$

 
$
3.3

 
$
(3.3
)
 
$

 
$

Schedule of Effect of Derivative Instruments on Consolidated Condensed Statements of Operations and Consolidated Condensed Statements of Comprehensive Income
The following tables present the effect of derivative and non-derivative hedging instruments on the consolidated condensed statements of operations and consolidated condensed statements of comprehensive income (in millions):
 
 
Amount of Gain or (Loss)
Recognized in OCI
on Derivative
(Effective Portion)
 
 
 
Amount of Gain or (Loss)
Reclassified from
Accumulated OCI
into Income
 
 
Three Months Ended   
June 30,
 
 
 
Three Months Ended   
June 30,
 
 
Location of Gain or
(Loss) Reclassified from
Accumulated OCI
into Income
 
 
 
2017
 
2016
 
2017
 
2016
Cash flow hedges
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
 
$
(17.6
)
 
$
0.5

 
Cost of sales
 
$
2.2

 
$
3.2

 
 
 
 
 
 
Selling, general, and administrative expenses
 
$
0.1

 
$
(0.3
)
 
 
 
 
 
 
 
 
 
 
 
Net investment hedges
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
 
$

 
$
8.5

 
 
 


 


Foreign currency denominated debt
 
$
(15.6
)
 
$

 
 
 
 
 
 
 
 
Amount of Gain or (Loss)
Recognized in OCI
on Derivative
(Effective Portion)
 
 
 
Amount of Gain or (Loss)
Reclassified from
Accumulated OCI
into Income
 
 
Six Months Ended   
June 30,
 
 
 
Six Months Ended   
June 30,
 
 
Location of Gain or
(Loss) Reclassified from
Accumulated OCI
into Income
 
 
 
2017
 
2016
 
2017
 
2016
Cash flow hedges
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
 
$
(26.1
)
 
$
(20.5
)
 
Cost of sales
 
$
4.7

 
$
14.6

 
 
 
 
 
 
Selling, general, and administrative expenses
 
$
0.2

 
$
(0.3
)
 
 
 
 
 
 
 
 
 
 
 
Net investment hedges
 
 
 
 
 
 
 
 
 
 
Foreign currency contracts
 
$

 
$
(3.8
)
 
 
 


 


Foreign currency denominated debt
 
$
(15.6
)
 
$

 
 
 
 
 
 

As of June 30, 2017, the Company had €370.0 million of outstanding long-term debt designated as a net investment hedge.
 
 
 
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative
 
 
 
 
Three Months Ended   
June 30,
 
 
Location of Gain or (Loss)
Recognized in Income on
Derivative
 
Fair value hedges
 
2017
 
2016
Interest rate swap agreements
 
Interest expense, net
 
$
0.1

 
$
(0.1
)
 
 
 
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative
 
 
 
 
Six Months Ended   
June 30,
 
 
Location of Gain or (Loss)
Recognized in Income on
Derivative
 
Fair value hedges
 
2017
 
2016
Interest rate swap agreements
 
Interest expense, net
 
$
0.2

 
$
4.8

The gains on the interest rate swap agreements are fully offset by the changes in the fair value of the fixed-rate debt being hedged.
 
 
 
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative
 
 
 
 
Three Months Ended   
June 30,
 
 
Location of Gain or (Loss)
Recognized in Income on
Derivative
 
Derivatives not designated as hedging instruments
 
2017
 
2016
Foreign currency contracts
 
Other expenses, net
 
$
(1.1
)
 
$
(9.4
)
 
 
 
 
 
 
 
 
 
 
 
Amount of Gain or (Loss)
Recognized in Income on
Derivative
 
 
 
 
Six Months Ended   
June 30,
 
 
Location of Gain or (Loss)
Recognized in Income on
Derivative
 
Derivatives not designated as hedging instruments
 
2017
 
2016
Foreign currency contracts
 
Other expenses, net
 
$
(6.6
)
 
$
(15.8
)