XML 46 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of notional amounts of outstanding derivative positions
At March 31, 2018, we held the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Australian dollar
265.0

 
204.8

Brazilian real
679.0

 
204.3

British pound
222.7

 
315.0

Canadian dollar
(175.4
)
 
(136.0
)
Euro
326.4

 
402.9

Mexican peso
(203.0
)
 
(11.0
)
Norwegian krone
(2,928.1
)
 
(373.4
)
Singapore dollar
65.0

 
49.7

Japanese yen
1,940.8

 
18.5

U.S. dollar
(19.1
)
 
(19.1
)
At March 31, 2018, our portfolio of these instruments included the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Brazilian real
(37.7
)
 
(11.3
)
Norwegian krone
(111.2
)
 
(14.2
)
U.S. dollar
17.5

 
17.5
Schedule of fair value of derivative instruments
The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets:
 
March 31, 2018
 
December 31, 2017
(In millions)
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as hedging instruments
 
 
 
 

 

Foreign exchange contracts
 
 
 
 

 

Current - Derivative financial instruments
$
92.6

 
$
49.0

 
$
65.6

 
$
51.0

Long-term - Derivative financial instruments
23.9

 
4.6

 
28.0

 
1.7

Total derivatives designated as hedging instruments
116.5

 
53.6

 
93.6

 
52.7

Derivatives not designated as hedging instruments
 
 
 
 

 

Foreign exchange contracts
 
 
 
 

 

Current - Derivative financial instruments
12.0

 
14.2

 
12.7

 
18.0

Long-term - Derivative financial instruments
7.6

 
5.1

 
4.7

 
4.2

Total derivatives not designated as hedging instruments
19.6

 
19.3

 
17.4

 
22.2

Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium
43.0

 
—

 
62.2

 
—

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

 
43.0

 
—

 
62.2

Total derivatives
$
179.1

 
$
115.9

 
$
173.2

 
$
137.1
Schedule of location of fair value hedge gain (loss) recognized in income
The following table presents the location of gains on the consolidated statements of income related to derivative instruments designated as fair value hedges:
 
Gain Recognized 
in Income
Location of Fair Value Hedge Gain Recognized in Income
Three Months Ended
 
March 31,
(In millions)
2018
 
2017
Other income (expense), net
$
2.9

 
$
20.8
Schedule of location of gains (losses) related to derivative instruments designated as cash flow hedges
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 Recognized
in OCI (Effective Portion)
 
Three Months Ended
 
March 31,
(In millions)
2018
 
2017
Foreign exchange contracts
$
14.2

 
$
34.5
Schedule of cash flow hedge
 
Gain (Loss) Reclassified from 
Accumulated OCI into Income (Effective Portion)
Location of Cash Flow Hedge Gain (Loss) Reclassified from Accumulated OCI into Income
Three Months Ended
 
March 31,
(In millions)
2018
 
2017
Foreign exchange contracts
 
 
 
Revenue
$
2.5

 
$
(14.6
)
Cost of sales
1.6

 
(0.1
)
Selling, general and administrative expense
0.1

 
—

Research and development expense
—

 
(0.1
)
Other income (expense), net
(4.6
)
 
(28.4
)
Total
$
(0.4
)
 
$
(43.2
)

 
Gain (Loss) Recognized in Income (Ineffective Portion
and Amount Excluded from Effectiveness Testing)
Location of Cash Flow Hedge Gain (Loss) Recognized in Income
Three Months Ended
 
March 31,
(In millions)
2018
 
2017
Foreign exchange contracts
 
 
 
Revenue
$
0.5

 
$
1.8

Cost of sales
(1.1
)
 
(1.2
)
Other income (expense), net
2.5

 
(3.1
)
Total
$
1.9

 
$
(2.5
)
Schedule of location of gain (loss) recognized in income
The following table presents the location of gains (losses) on the consolidated statements of income related to derivative instruments not designated as hedging instruments:
 
Gain (Loss) Recognized in Income on Derivatives
(Instruments Not Designated as Hedging Instruments)
Location of Gain (Loss) Recognized in Income
Three Months Ended
 
March 31,
(In millions)
2018
 
2017
Foreign exchange contracts
 
 
 
Revenue
$
0.3

 
$
0.3

Cost of sales
0.1

 
(0.5
)
Other income (expense), net
(13.4
)
 
28.0

Total
$
(13.0
)
 
$
27.8
Schedule of derivative assets, gross and net
The following tables present both gross information and net information of recognized derivative instruments:
 
March 31, 2018
 
December 31, 2017
(In millions)
Gross Amount Recognized
 
Gross Amounts Not Offset, But Permitted Under Master Netting Agreements
 
Net Amount
 
Gross Amount Recognized
 
Gross Amounts Not Offset, But Permitted Under Master Netting Agreements
 
Net Amount
Derivative assets
$
179.1

 
$
(101.7
)
 
$
77.4

 
$
173.2

 
$
(114.4
)
 
$
58.8

Derivative liabilities
$
115.9

 
$
(101.7
)
 
$
14.2

 
$
137.1

 
$
(114.4
)
 
$
22.7
Schedule of derivative liabilities, gross and net
 
March 31, 2018
 
December 31, 2017
(In millions)
Gross Amount Recognized
 
Gross Amounts Not Offset, But Permitted Under Master Netting Agreements
 
Net Amount
 
Gross Amount Recognized
 
Gross Amounts Not Offset, But Permitted Under Master Netting Agreements
 
Net Amount
Derivative assets
$
179.1

 
$
(101.7
)
 
$
77.4

 
$
173.2

 
$
(114.4
)
 
$
58.8

Derivative liabilities
$
115.9

 
$
(101.7
)
 
$
14.2

 
$
137.1

 
$
(114.4
)
 
$
22.7