Financial Instruments, Risk Management and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of derivative instruments in statement of financial position, fair value

The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments.



	March 31, 2018
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges			Not Designated as Hedging Instruments		Total Gross Amounts			Gross Amounts Offset in the Consolidated Balance Sheet ⁽³⁾			Net Amounts
Derivatives
Foreign exchange contracts	$	9.0		$	1.7	$	10.7		$	(2.9	)	$	7.8
Total derivative assets⁽¹⁾	$	9.0		$	1.7	$	10.7		$	(2.9	)	$	7.8

Foreign exchange contracts	$	(4.6	)	$	—	$	(4.6	)	$	2.9		$	(1.7	)
Total derivative liabilities⁽²⁾	$	(4.6	)	$	—	$	(4.6	)	$	2.9		$	(1.7	)

Net derivative assets (liabilities)	$	4.4		$	1.7	$	6.1		$	—		$	6.1



	December 31, 2017
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges			Not Designated as Hedging Instruments			Total Gross Amounts			Gross Amounts Offset in the Consolidated Balance Sheet ⁽³⁾			Net Amounts
Derivatives
Foreign exchange contracts	$	7.0		$	1.2		$	8.2		$	(1.5	)	$	6.7
Total derivative assets⁽¹⁾	$	7.0		$	1.2		$	8.2		$	(1.5	)	$	6.7

Foreign exchange contracts	$	(3.6	)	$	(0.2	)	$	(3.8	)	$	1.5		$	(2.3	)
Total derivative liabilities⁽²⁾	$	(3.6	)	$	(0.2	)	$	(3.8	)	$	1.5		$	(2.3	)

Net derivative assets (liabilities)	$	3.4		$	1.0		$	4.4		$	—		$	4.4

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(1)	Net balance is included in “Prepaid and other current assets” in the condensed consolidated balance sheets.


(2)	Net balance is included in “Accrued and other liabilities” in the condensed consolidated balance sheets.


(3)	Represents net derivatives positions subject to master netting arrangements.

Schedule of derivative instruments, gain (loss) in statement of financial performance

The tables below summarize the gains or losses related to our cash flow hedges and derivatives not designated as hedging instruments.

Derivatives in Cash Flow Hedging Relationships



	Three Months Ended March 31,
	Contracts
	Foreign Exchange					Energy					Other				Total
(in Millions)	2018			2017		2018		2017			2018		2017		2018			2017
Unrealized hedging gains (losses) and other, net of tax	$	1.5		$	1.9	$	—	$	(0.8	)	$	—	$	—	$	1.5		$	1.1
Reclassification of deferred hedging (gains) losses, net of tax ⁽¹⁾
Effective portion ⁽¹⁾	0.3			0.1		—		(0.6		)	0.2		—		0.5			(0.5		)
Ineffective portion ⁽¹⁾	(0.1		)	—		—		—			—		—		(0.1		)	—
Total derivative instrument impact on comprehensive income, net of tax	$	1.7		$	2.0	$	—	$	(1.4	)	$	0.2	$	—	$	1.9		$	0.6

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(1)	See Note 14 for classification of amounts within the condensed consolidated statements of income (loss).

Derivatives Not Designated as Hedging Instruments



		Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives ⁽¹⁾
		Three Months Ended March 31,
(in Millions)	Location of Gain or (Loss) Recognized in Income on Derivatives	2018			2017
Foreign exchange contracts	Cost of sales and services	$	(1.4	)	$	(6.0	)
Total		$	(1.4	)	$	(6.0	)

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(1)	Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item.

Schedule of fair value, assets and liabilities measured on recurring basis

The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in the condensed consolidated balance sheets. During the periods presented there were no transfers between fair-value hierarchy levels.



(in Millions)	March 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Derivatives – Foreign exchange⁽¹⁾	$	7.8	$	—	$	7.8	$	—
Other⁽²⁾	30.8		30.8		—		—
Total assets	$	38.6	$	30.8	$	7.8	$	—

Liabilities
Derivatives – Foreign exchange ⁽¹⁾	$	1.7	$	—	$	1.7	$	—
Other⁽³⁾	41.8		37.9		3.9		—
Total liabilities	$	43.5	$	37.9	$	5.6	$	—



(in Millions)	December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Derivatives – Foreign exchange ⁽¹⁾	$	6.7	$	—	$	6.7	$	—
Other⁽²⁾	30.1		30.1		—		—
Total assets	$	36.8	$	30.1	$	6.7	$	—

Liabilities
Derivatives – Foreign exchange⁽¹⁾	$	2.3	$	—	$	2.3	$	—
Other ⁽³⁾	46.6		38.8		7.8		—
Total liabilities	$	48.9	$	38.8	$	10.1	$	—

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(1)	See the Fair Value of Derivative Instruments table within this Note for classification on the condensed consolidated balance sheets.


(2)	Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheets. Both the asset and liability are recorded at fair value. Asset amounts are included in “Other assets including long-term receivables, net” in the condensed consolidated balance sheets.


(3)	Primarily consists of a deferred compensation arrangement recognized on our balance sheets. Both the asset and liability are recorded at fair value. Liability amounts are included in “Other long-term liabilities” in the condensed consolidated balance sheets.

Fair value measurements, nonrecurring

The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis in the condensed consolidated balance sheets during the year ended December 31, 2017. There were no non-recurring fair value measurements in the condensed consolidated balance sheets during the three months ended March 31, 2018.



(in Millions)	December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) (Period Ended December 31, 2017)
Assets
Impairment of Crop Protection intangibles ⁽¹⁾	$	1,136.1	$	—	$	—	$	1,136.1	$	(42.1	)
Impairment of intangibles⁽²⁾	4.3		—		—		4.3		(1.3		)
Total assets	$	1,140.4	$	—	$	—	$	1,140.4	$	(43.4	)

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(1)	Represents impairment charge to write down certain indefinite-lived intangible assets of the acquired DuPont Crop Protection Business as a result of a triggering event for the United States' enactment of the Act.


(2)	We recorded an impairment charge, related to our FMC Agricultural Solutions segment, to write down the carrying value of the generic brand portfolio of approximately $1 million to its fair value.