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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of notional amounts of outstanding derivative positions At September 30, 2019, we held the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Euro
987.4

 
1,077.2

Brazilian real
634.2

 
152.3

British pound
291.1

 
358.3

Norwegian krone
1,525.1

 
168.1

Malaysian ringgit
382.0

 
91.2

Singapore dollar
90.6

 
65.5

Japanese yen
4,155.0

 
38.5

Australian dollar
165.1

 
111.6

Mexican peso
(300.0
)
 
(15.2
)
Canadian dollar
(83.3
)
 
(63.0
)
U.S. dollar
(1,264.0
)
 
(1,264.0
)

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 September 30, 2019, our portfolio of these instruments included the following material net positions:
 
Net Notional Amount
Bought (Sold)
(In millions)
 
 
USD Equivalent
Brazilian real
6.6

 
1.6

Euro
(4.9
)
 
(5.3
)
U.S. dollar
2.8

 
2.8
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:
 
September 30, 2019
 
December 31, 2018
(In millions)
Assets
 
Liabilities
 
Assets
 
Liabilities
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
Current - Derivative financial instruments
$
97.5

 
$
217.6

 
$
83.8

 
$
127.7

Long-term - Derivative financial instruments
30.4

 
92.3

 
9.0

 
35.6

Total derivatives designated as hedging instruments
127.9

 
309.9

 
92.8

 
163.3

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
Current - Derivative financial instruments
8.7

 
8.7

 
11.9

 
10.7

Long-term - Derivative financial instruments
—

 
—

 
0.1

 
0.1

Total derivatives not designated as hedging instruments
8.7

 
8.7

 
12.0

 
10.8

Long-term - Derivative financial instruments - Synthetic Bonds - Call Option Premium
15.7

 
—

 
9.2

 
—

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

 
15.7

 
—

 
9.2

Total derivatives
$
152.3

 
$
334.3

 
$
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
 
Nine Months Ended
 
September 30,
 
September 30,
(In millions)
2019
 
2018
 
2019
 
2018
Foreign exchange contracts
$
(47.0
)
 
$
16.5

 
$
(44.0
)
 
$
(24.0
)
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 nine months ended September 30, 2019 and 2018:
(In millions)
Three Months Ended September 30, 2019
 
Three Months Ended September 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
$
(3.1
)
 
$
1.6

 
$
—

 
$
23.3

 
$
(0.8
)
 
$
1.1

 
$
(0.1
)
 
$
4.8

Amounts excluded from effectiveness testing
2.6

 
(2.9
)
 
—

 
(8.6
)
 
(5.7
)
 
6.1

 
—

 
(26.6
)
Total cash flow hedge gain (loss) recognized in income
(0.5
)
 
(1.3
)
 
—

 
14.7

 
(6.5
)
 
7.2

 
(0.1
)
 
(21.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income on derivatives not designated as hedging instruments
(0.1
)
 
0.1

 
—

 
(19.4
)
 
—

 
0.2

 
—

 
(5.3
)
Total
$
(0.6
)
 
$
(1.2
)
 
$
—

 
$
(4.7
)
 
$
(6.5
)
 
$
7.4

 
$
(0.1
)
 
$
(27.1
)

(In millions)
Nine Months Ended September 30, 2019
 
Nine Months Ended September 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 (loss)
$
(15.6
)
 
$
6.5

 
$
0.1

 
$
21.9

 
$
2.8

 
$
6.2

 
$
(0.1
)
 
$
0.1

Amounts excluded from effectiveness testing
1.5

 
(5.1
)
 
—

 
(30.7
)
 
(4.9
)
 
4.1

 
—

 
(23.4
)
Total cash flow hedge gain (loss) recognized in income
(14.1
)
 
1.4

 
0.1

 
(8.8
)
 
(2.1
)
 
10.3

 
(0.1
)
 
(23.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income on derivatives not designated as hedging instruments
(1.2
)
 
—

 
—

 
(14.4
)
 
(0.9
)
 
0.4

 
—

 
(6.9
)
Total
$
(15.3
)
 
$
1.4

 
$
0.1

 
$
(23.2
)
 
$
(3.0
)
 
$
10.7

 
$
(0.1
)
 
$
(30.2
)
Schedule of derivative assets, gross and net The following tables present both gross information and net information of recognized derivative instruments:
 
September 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
$
152.3

 
$
(136.4
)
 
$
15.9

 
$
114.0

 
$
(105.9
)
 
$
8.1

Derivative liabilities
$
334.3

 
$
(136.4
)
 
$
197.9

 
$
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:
 
September 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
$
152.3

 
$
(136.4
)
 
$
15.9

 
$
114.0

 
$
(105.9
)
 
$
8.1

Derivative liabilities
$
334.3

 
$
(136.4
)
 
$
197.9

 
$
183.3

 
$
(105.9
)
 
$
77.4