XML 57 R41.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
Foreign exchange rate forward contracts—The purpose of these instruments is to hedge the risk of changes in future cash flows of anticipated purchase or sale commitments denominated in foreign currencies and recorded assets and liabilities in our consolidated balance sheets. At June 30, 2017, we held the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Australian dollar
182.4

 
138.2

Brazilian real
829.5

 
250.5

British pound
243.6

 
309.9

Canadian dollar
(181.3
)
 
(139.5
)
Euro
997.1

 
1,115.7

Malaysian ringgit
118.4

 
27.6

Nigerian naira
(5,566.3
)
 
(16.7
)
Norwegian krone
(420.6
)
 
(50.4
)
Russian ruble
1,152.7

 
19.5

Singapore dollar
93.1

 
67.7

U.S. dollar
(1,736.7
)
 
(1,736.7
)
Foreign exchange rate instruments embedded in purchase and sale contracts—The purpose of these instruments is to match offsetting currency payments and receipts for particular projects, or comply with government restrictions on the currency used to purchase goods in certain countries. At June 30, 2017, our portfolio of these instruments included the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Brazilian real
(47.3
)
 
(14.3
)
Euro
(25.5
)
 
(29.1
)
Norwegian krone
(172.2
)
 
(20.5
)
U.S. dollar
60.0

 
60.0
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets.
 
June 30, 2017
 
December 31, 2016
(In millions)
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts:
 
 
 
 
 
 
 
Current – Derivative financial instruments
$
74.0

 
$
113.0

 
$
47.2

 
$
183.0

Long-term – Derivative financial instruments
18.8

 
10.2

 
10.7

 
47.6

Total derivatives designated as hedging instruments
92.8

 
123.2

 
57.9

 
230.6

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Foreign exchange contracts:
 
 
 
 
 
 
 
Current – Derivative financial instruments
6.8

 
18.9

 
—

 
—

Long-term – Derivative financial instruments
0.4

 
4.5

 
—

 
—

Total derivatives not designated as hedging instruments
7.2

 
23.4

 
—

 
—

Long-term – Derivative financial instruments
– Synthetic Bonds – Call Option Premium
60.9

 
—

 
180.1

 
—

Long-term – Derivative financial instruments
– Synthetic Bonds – Embedded Derivatives
—

 
60.9

 
—

 
180.1

Total derivatives
$
160.9

 
$
207.5

 
$
238.0

 
$
410.7
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments designated as fair value hedges.
Location of Fair Value Hedge Gain (Loss) Recognized in Income
Gain (Loss) Recognized in
Income
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Other income (expense), net
$
28.8

 
$
27.6

 
$
49.7

 
$
11.5
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
The following tables present the location of gains (losses) on the consolidated statements of other comprehensive income and/or the consolidated statements of income related to derivative instruments designated as cash flow hedges.
 
Gain (Loss) Recognized in
OCI (Effective Portion)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Foreign exchange contracts
$
25.9

 
$
81.8

 
$
60.3

 
$
36.3
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
Location of Cash Flow Hedge Gain (Loss) Reclassified from 
Accumulated OCI into Income
Gain (Loss) Reclassified from Accumulated
OCI into Income (Effective Portion)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Foreign exchange contracts:
 
 
 
 
 
 
 
Revenue
$
(10.7
)
 
$
—

 
$
(25.4
)
 
$
—

Cost of sales
1.6

 
—

 
1.5

 
—

Selling, general and administrative expense
0.2

 
—

 
0.2

 
—

Research and development expense
—

 
—

 
(0.1
)
 
—

Other (expense), net
(21.8
)
 
(26.3
)
 
(50.2
)
 
(89.8
)
Total
$
(30.7
)
 
$
(26.3
)
 
$
(74.0
)
 
$
(89.8
)
 
 
 
 
 
 
 
 
Location of Cash Flow Hedge Gain (Loss) Recognized in Income
Gain (Loss) Recognized in Income (Ineffective Portion
and Amount Excluded from Effectiveness Testing)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Foreign exchange contracts:
 
 
 
 
 
 
 
Revenue
$
2.4

 
$
—

 
$
4.2

 
$
—

Cost of sales
(3.4
)
 
—

 
(4.5
)
 
—

Other expense, net
16.8

 
(14.4
)
 
13.8

 
(4.6
)
Total
$
15.8

 
$
(14.4
)
 
$
13.5

 
$
(4.6
)
Schedule of Other Derivatives Not Designated as Hedging Instruments
The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments not designated as hedging instruments.
Location of Gain (Loss) Recognized in Income
Gain (Loss) Recognized in Income on Derivatives
(Instruments Not Designated as Hedging Instruments)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Foreign exchange contracts:
 
 
 
 
 
 
 
Revenue
$
(0.3
)
 
$
—

 
$
—

 
$
—

Cost of sales
—

 
—

 
(0.5
)
 
—

Other income, net
(0.6
)
 
(4.1
)
 
32.1

 
(2.5
)
Total
$
(0.9
)
 
$
(4.1
)
 
$
31.6

 
$
(2.5
)
Offsetting Assets
The following tables present both gross information and net information of recognized derivative instruments:
 
June 30, 2017
 
December 31, 2016
(In millions)
Gross Amount Recognized
 
Gross Amounts Not Offset Permitted Under Master Netting Agreements
 
Net Amount
 
Gross Amount Recognized
 
Gross Amounts Not Offset Permitted Under Master Netting Agreements
 
Net Amount
Derivative assets
$
160.9

 
$
(6.8
)
 
$
154.1

 
$
238.0

 
$
(57.9
)
 
$
180.1
Offsetting Liabilities
 
June 30, 2017
 
December 31, 2016
(In millions)
Gross Amount Recognized
 
Gross Amounts Not Offset Permitted Under Master Netting Agreements
 
Net Amount
 
Gross Amount Recognized
 
Gross Amounts Not Offset Permitted Under Master Netting Agreements
 
Net Amount
Derivative liabilities
$
207.5

 
$
(6.8
)
 
$
200.7

 
$
410.7

 
$
(57.9
)
 
$
352.8