XML 56 R45.htm IDEA: XBRL DOCUMENT v3.19.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of notional amounts of outstanding derivative positions At June 30, 2019, we held the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Euro
631.5

 
718.1

Brazilian real
963.8

 
251.5

British pound
163.0

 
206.9

Norwegian krone
1,183.5

 
138.9

Malaysian ringgit
393.0

 
95.1

Singapore dollar
120.1

 
88.7

Japanese yen
8,447.0

 
78.4

Australian dollar
108.4

 
76.3

Mexican peso
(287.0
)
 
(15.0
)
Canadian dollar
(90.8
)
 
(69.3
)
U.S. dollar
(1,270.0
)
 
(1,270.0
)

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, 2019, our portfolio of these instruments included the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Brazilian real
(14.0
)
 
(3.7
)
Euro
(0.7
)
 
(0.8
)
Norwegian krone
(5.1
)
 
(0.6
)
U.S. dollar
4.8

 
4.8
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:
 
June 30, 2019
 
December 31, 2018
(In millions)
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
Current - Derivative financial instruments
$
61.0

 
$
108.8

 
$
83.8

 
$
127.7

Long-term - Derivative financial instruments
20.7

 
56.1

 
9.0

 
35.6

Total derivatives designated as hedging instruments
81.7

 
164.9

 
92.8

 
163.3

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
Current - Derivative financial instruments
12.2

 
18.1

 
11.9

 
10.7

Long-term - Derivative financial instruments
—

 
—

 
0.1

 
0.1

Total derivatives not designated as hedging instruments
12.2

 
18.1

 
12.0

 
10.8

Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium
19.1

 
—

 
9.2

 
—

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

 
19.1

 
—

 
9.2

Total derivatives
$
113.0

 
$
202.1

 
$
114.0

 
$
183.3
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 (Loss) Recognized in OCI
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(In millions)
2019
 
2018
 
2019
 
2018
Foreign exchange contracts
$
(13.6
)
 
$
(54.7
)
 
$
3.0

 
$
(40.5
)
Schedule of gain (loss) recognized in income related to hedges and derivatives
The following represents the effect of cash flow hedge accounting on the consolidated statements of income for the three and six months ended June 30, 2019 and 2018:
(In millions)
Three Months Ended June 30, 2019
 
Three Months Ended June 30, 2018
Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives
Revenue
 
Cost of sales
 
Selling,
general
and
administrative
expense
 
Other income (expense), net
 
Revenue
 
Cost of sales
 
Selling,
general
and
administrative
expense
 
Other income (expense), net
Cash Flow hedge gain (loss) recognized in income

 

 

 

 

 

 

 

Foreign Exchange Contracts

 

 

 

 

 

 

 

Amounts reclassified from accumulated OCI to income
$
(13.2
)
 
$
2.3

 
$
—

 
$
1.0

 
$
1.1

 
$
3.5

 
$
(0.1
)
 
$
(0.1
)
Amounts excluded from effectiveness testing
(0.8
)
 
1.9

 
—

 
(12.5
)
 
0.3

 
(0.9
)
 
—

 
0.7

Total cash flow hedge gain (loss) recognized in income
(14.0
)
 
4.2

 
—

 
(11.5
)
 
1.4

 
2.6

 
(0.1
)
 
0.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income on derivatives not designated as hedging instruments
(0.1
)
 
(0.1
)
 
—

 
8.3

 
(1.2
)
 
0.1

 
—

 
11.8

Total
$
(14.1
)
 
$
4.1

 
$
—

 
$
(3.2
)
 
$
0.2

 
$
2.7

 
$
(0.1
)
 
$
12.4


(In millions)
Six Months Ended June 30, 2019
 
Six Months Ended June 30, 2018
Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives
Revenue
 
Cost of sales
 
Selling,
general
and
administrative
expense
 
Other income (expense), net
 
Revenue
 
Cost of sales
 
Selling,
general
and
administrative
expense
 
Other income (expense), net
Cash Flow hedge gain (loss) recognized in income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Exchange Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts reclassified from accumulated OCI to income
$
(12.5
)
 
$
4.9

 
$
0.1

 
$
(1.4
)
 
$
3.6

 
$
5.1

 
$
—

 
$
(4.7
)
Amounts excluded from effectiveness testing
(1.1
)
 
(2.2
)
 
—

 
(22.1
)
 
0.8

 
(2.0
)
 
—

 
3.2

Total cash flow hedge gain (loss) recognized in income
(13.6
)
 
2.7

 
0.1

 
(23.5
)
 
4.4

 
3.1

 
—

 
(1.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income on derivatives not designated as hedging instruments
(1.1
)
 
(0.1
)
 
—

 
5.0

 
(0.9
)
 
0.2

 
—

 
(1.6
)
Total
$
(14.7
)
 
$
2.6

 
$
0.1

 
$
(18.5
)
 
$
3.5

 
$
3.3

 
$
—

 
$
(3.1
)
Schedule of derivative assets, gross and net The following tables present both gross information and net information of recognized derivative instruments:
 
June 30, 2019
 
December 31, 2018
(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
$
113.0

 
$
(92.0
)
 
$
21.0

 
$
114.0

 
$
(105.9
)
 
$
8.1

Derivative liabilities
$
202.1

 
$
(92.0
)
 
$
110.1

 
$
183.3

 
$
(105.9
)
 
$
77.4
Schedule of derivative liabilities, gross and net The following tables present both gross information and net information of recognized derivative instruments:
 
June 30, 2019
 
December 31, 2018
(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
$
113.0

 
$
(92.0
)
 
$
21.0

 
$
114.0

 
$
(105.9
)
 
$
8.1

Derivative liabilities
$
202.1

 
$
(92.0
)
 
$
110.1

 
$
183.3

 
$
(105.9
)
 
$
77.4