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Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments and hedging activities DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Cross Currency Swaps

We entered into a cross-currency swap designated as a net investment hedge on August 15, 2019, to hedge the Euro currency exposure of our net investment in European operations. This agreement is a contract to exchange floating-rate Euro payments for floating-rate U.S. dollar payments. The payments are based on a notional basis of €450.0 million ($498.0 million) and settle quarterly.

Interest Rate Swaps and Treasury Locks

During the year ended December 31, 2017, we repaid $584.4 million of senior notes with an interest rate of 4.000% due 2023 and $309.5 million of senior notes with an interest rate of 5.300% due 2043 (refer to Note 11). As a result of the senior note repayments on June 15, 2017, the proportionate amount remaining in OCI related to the pre-issuance hedge was reclassified to earnings. Accordingly, we recorded a loss of $5.9 million in Other expense, net for the amount remaining in OCI.

Foreign Currency Forwards

Foreign currency forward contracts entered into to hedge forecasted revenue and expenses were as follows (in millions):
 
 
Notional Amount
 
 
December 31,
2019
 
December 31,
2018
Israeli Shekel (ILS)
 
$
712.7

 
$
232.6

European Euro (EUR)
 
157.6

 
134.2

United States Dollar (USD)
 
92.4

 
39.3

British Pound (GBP)
 
86.9

 
90.2

Danish Krone (DKK)
 
51.7

 
56.5

Swedish Krona (SEK)
 
42.0

 
38.7

Canadian Dollar (CAD)
 
41.3

 
31.7

Polish Zloty (PLZ)
 
21.5

 
18.2

Chinese Yuan (CNY)
 
20.9

 
—

Mexican Peso (MPX)
 
9.7

 
25.9

Norwegian Krone (NOK)
 
6.6

 
6.2

Switzerland Franc (CHF)
 
4.1

 
2.6

Romanian New Leu (RON)
 
2.3

 
4.4

Other
 
7.5

 
6.1

Total
 
$
1,257.2

 
$
686.6



Effects of Derivatives on the Financial Statements
    
The below tables indicate the effects of all derivative instruments on the Consolidated Financial Statements. All amounts exclude income tax effects.

The balance sheet location and gross fair value of our outstanding derivative instruments were as follows (in millions):
 
 
 
Asset Derivatives
 
 
 
Fair Value
 
 
 
Year Ended
 
Balance Sheet Location
 
December 31,
2019
 
December 31,
2018
Designated derivatives
 
 
 
 
 
Foreign currency forward contracts
Prepaid expenses and other current assets
 
$
1.0

 
$
2.0

Cross-currency swap
Prepaid expenses and other current assets
 
26.3

 
—

Total designated derivatives
 
 
$
27.3

 
$
2.0

Non-designated derivatives
 
 
 
 
 
Foreign currency forward contracts
Prepaid expenses and other current assets
 
$
3.3

 
$
1.8

 
 
 
Liability Derivatives
 
 
 
Fair Value
 
 
 
Year Ended
 
Balance Sheet Location
 
December 31,
2019
 
December 31,
2018
Designated derivatives
 
 
 
 
 
Foreign currency forward contracts
Other accrued liabilities
 
$
4.7

 
$
6.4

Non-designated derivatives
 
 
 
 
 
Foreign currency forward contracts
Other accrued liabilities
 
$
3.7

 
$
2.8


The following tables summarize the effect of derivative instruments designated as hedging instruments in AOCI (in millions):
 
 
Year Ended
 
 
December 31, 2019
Instrument
 
Amount of Gain/(Loss) Recorded in OCI(1)
 
Classification of Gain/(Loss) Reclassified from AOCI into Earnings
 
Amount of Gain/(Loss) Reclassified from AOCI into Earnings
 
Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing
 
Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges
 
 
 
 
 
 
 
 
 
 
Treasury locks
 
$
—

 
Interest expense, net
 
$
(0.1
)
 
Interest expense, net
 
$
—

Interest rate swap agreements
 
—

 
Interest expense, net
 
(1.8
)
 
Interest expense, net
 
—

Foreign currency forward contracts
 
(1.2
)
 
Net sales
 
2.5

 
Net sales
 
(2.1
)
 
 
 
 
Cost of sales
 
0.1

 
Cost of sales
 
(1.5
)
 
 
$
(1.2
)
 
 
 
$
0.7

 
 
 
$
(3.6
)
Net investment hedges
 
 
 
 
 
 
 
 
 
 
Cross-currency swap
 
$
31.2

 
 
 
 
 
Interest expense, net
 
$
4.9


(1) Net loss of $2.8 million is expected to be reclassified out of AOCI into earnings during the next 12 months.

 
 
Year Ended
 
 
December 31, 2018
 
 
Effective Portion
Instrument
 
Amount of Gain/(Loss) Recorded in OCI
 
Classification of Gain/(Loss) Reclassified from AOCI into Earnings
 
Amount of Gain/(Loss) Reclassified from AOCI into Earnings
Treasury locks
 
$
—

 
Interest expense, net
 
$
(0.1
)
Interest rate swap agreements
 
—

 
Interest expense, net
 
(1.8
)
Foreign currency forward contracts
 
(9.1
)
 
Net sales
 
0.5

 
 
 
 
Cost of sales
 
1.9

 
 
 
 
Interest expense, net
 
(4.8
)
 
 
 
 
Other (income) expense, net
 
2.1

 
 
$
(9.1
)
 
 
 
$
(2.2
)

 
 
Year Ended
 
 
December 31, 2017
 
 
Effective Portion
Instrument
 
Amount of Gain/(Loss) Recorded in OCI
 
Classification of Gain/(Loss) Reclassified from AOCI into Earnings
 
Amount of Gain/(Loss) Reclassified from AOCI into Earnings
Treasury locks
 
$
—

 
Interest expense, net
 
$
(0.1
)
Interest rate swap agreements
 
—

 
Interest expense, net
 
(2.1
)
 
 
 
 
Other (income) expense, net
 
(6.0
)
Foreign currency forward contracts
 
9.4

 
Net sales
 
1.5

 
 
 
 
Cost of sales
 
5.6

 
 
 
 
Interest expense, net
 
(2.6
)
 
 
 
 
Other (income) expense, net
 
(1.5
)
 
 
$
9.4

 
 
 
$
(5.2
)


The gain (loss) recognized against earnings for the ineffective portion of our designated cash flow hedges were as follows (in millions):
 
 
 
 
Amount of Gain/(Loss) Recognized in Earnings
(Ineffective Portion)
 
 
 
 
Year Ended
Designated Cash Flow Hedges
 
Income Statement Location
 
December 31,
2017
Foreign currency forward contracts
 
Net sales
 
$
0.2

 
 
Cost of sales
 
0.1

 
 
Other expense, net
 
1.0

 
 
 
 
$
1.3



The amounts of gain/(loss) recognized in earnings related to our non-designated derivatives on the Consolidated Statements of Operations were as follows (in millions):
 
 
 
 
Year Ended
Non-Designated Derivatives
 
Income Statement Location
 
December 31,
2019
 
December 31,
2018
 
December 31,
2017
Foreign currency forward contracts
 
Other (income) expense, net
 
$
(25.4
)
 
$
7.6

 
$
12.6

 
 
Interest expense, net
 
1.8

 
(1.0
)
 
(5.3
)
 
 
 
 
$
(23.6
)
 
$
6.6

 
$
7.3



The classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships are as follows (in millions):
 
 
Year Ended
 
 
December 31, 2019
 
 
Net Sales
 
Cost of Sales
 
Interest Expense, net
 
Other (Income) Expense, net
Total amounts of income and expense line items presented on the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded
 
$
4,837.4

 
$
3,064.1

 
$
121.7

 
$
(66.0
)
 
 
 
 
 
 
 
 
 
The effects of cash flow hedging:
 
 
 
 
 
 
 
 
Gain (loss) on cash flow hedging relationships
 
 
 
 
 
 
 
 
Foreign currency forward contracts
 
 
 
 
 
 
 
 
Amount of gain or (loss) reclassified from AOCI into earnings
 
$
2.5

 
$
0.1

 
$
—

 
$
—

Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach
 
$
(2.1
)
 
$
(1.5
)
 
$
—

 
$
—

Treasury locks
 
 
 
 
 
 
 
 
Amount of gain or (loss) reclassified from AOCI into earnings
 
$
—

 
$
—

 
$
(0.1
)
 
$
—

Interest rate swap agreements
 
 
 
 
 
 
 
 
Amount of gain or (loss) reclassified from AOCI into earnings
 
$
—

 
$
—

 
$
(1.8
)
 
$
—