Derivative Instruments, Hedging Activities and Fair Value (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments, Hedging Activities And Fair Value Disclosure [Abstract]

Schedule of fair value of outstanding derivative contracts

The fair value of outstanding derivative contracts recorded as assets and liabilities on the Condensed Consolidated Balance Sheets was as follows:

	Asset Derivatives			Liability Derivatives
(In thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
September 30, 2017
Derivatives designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	2,673	Other current liabilities	$	92
Cross-currency interest rate swaps	Other current assets	110			—
Interest rate swaps		—		Other current liabilities	197
Interest rate swaps	Other assets	92		Other liabilities	2,773
Total derivatives designated as hedging instruments		$	2,875		$	3,062
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	572	Other current liabilities	$	22,698

	Asset Derivatives			Liability Derivatives
(In thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
December 31, 2016
Derivatives designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	473	Other current liabilities	$	166
Cross-currency interest rate swaps	Other current assets	514			—
Total derivatives designated as hedging instruments		$	987		$	166
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	4,459	Other current liabilities	$	3,372

Schedule of effect of derivative instruments

The effect of derivative instruments on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income (Loss), was as follows:

Derivatives Designated as Hedging Instruments

(In thousands)	Amount  Recognized in Other Comprehensive Income  (“OCI”)  on Derivative - Effective  Portion			Location of Amount Reclassified from Accumulated OCI into Income - Effective Portion	Amount Reclassified  from Accumulated OCI into  Income - Effective  Portion		Location of Amount Recognized  in Income on  Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount  Recognized  in Income  on Derivative - Ineffective  Portion and  Amount Excluded from Effectiveness  Testing
Three Months Ended September 30, 2017:
Foreign currency exchange forward contracts	$	2,333			$	—		$	—
Interest rate swaps	(335		)		—			—
Cross-currency interest rate swaps	(72		)	Interest expense	252		Cost of services and products sold	(103		)	(a)
	$	1,926			$	252		$	(103	)
Three Months Ended September 30, 2016:
Foreign currency exchange forward contracts	$	2,378			$	—		$	—
Cross-currency interest rate swaps	(210		)	Interest expense	254		Cost of services and products sold	(232		)	(a)
	$	2,168			$	254		$	(232	)

(In thousands)	Amount Recognized in  OCI  on Derivative - Effective  Portion			Location Amount Reclassified from Accumulated OCI into Income - Effective Portion	Amount Reclassified  from Accumulated  OCI into  Income - Effective  Portion			Location of Amount Recognized  in Income on  Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount  Recognized  in Income  on Derivative - Ineffective  Portion and  Amount Excluded from Effectiveness  Testing
Nine Months Ended September 30, 2017:
Foreign currency forward exchange contracts	$	3,096		Product revenues / Cost of services and products sold	$	(185	)		$	—
Interest rate swaps	(2,878		)		—				—
Cross currency interest rate swaps	(195		)	Interest expense	745			Cost of services and products sold	(420		)	(a)
	$	23			$	560			$	(420	)
Nine Months Ended September 30, 2016:
Foreign currency forward exchange contracts	$	1,748		Product revenues / Cost of services and products sold	$	(409	)		$	—
Cross currency interest rate swaps	(2,361		)	Interest expense	478			Cost of services and products sold	3,987			(a)
	$	(613	)		$	69			$	3,987

(a) These gains (losses) offset foreign currency fluctuation effects on the debt principal.

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative for the Three Months Ended September 30 (b)
(In thousands)		2017			2016
Foreign currency exchange forward contracts	Cost of services and products sold	$	(7,025	)	$	552

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative for the Nine Months Ended September 30 (b)
(In thousands)		2017			2016
Foreign currency forward exchange contracts	Cost of services and products sold	$	(18,764	)	$	2,292

(b)  These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures.

Summary of notional amount of foreign currency exchange contracts and cross-currency interest rate swaps

The following table indicates the notional amounts of the Company's interest rate swaps at September 30, 2017:

	Annual Notional Amount		Interest Rates
(In millions)			Receive	Pay
Maturing 2018 through 2021	$	300.0	Floating U.S. dollar rate	Fixed U.S. dollar rate

Cross-Currency Interest Rate Swaps (CCIRs)

The Company uses CCIRs in conjunction with certain debt issuances in order to secure a fixed local currency interest rate.  Under these CCIRs, the Company receives interest based on a fixed or floating U.S. dollar rate and pays interest on a fixed local currency rate based on the contractual amounts in dollars and the local currency, respectively.  At maturity, there is also the payment of principal amounts between currencies. The CCIRs are recorded on the Condensed Consolidated Balance Sheets at fair value, with changes in value attributed to the effect of the swaps’ interest spread and changes in the credit worthiness of the counter-parties recorded in Accumulated other comprehensive loss.  Changes in value attributed to the effect of foreign currency fluctuations are recorded on the Condensed Consolidated Statements of Operations and offset currency fluctuation effects on the debt principal.

The following table indicates the contractual amounts of the Company's CCIRs at September 30, 2017:

			Interest Rates
(In millions)	Contractual Amount		Receive	Pay
Maturing 2017	$	0.7	Floating U.S. dollar rate	Fixed rupee rate

The following tables summarize, by major currency, the contractual amounts of the Company’s foreign currency exchange forward contracts in U.S. dollars.  The “Buy” amounts represent the U.S. dollar equivalent of commitments to purchase foreign currencies, and the “Sell” amounts represent the U.S. dollar equivalent of commitments to sell foreign currencies.  The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures.

Contracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at September 30, 2017:

(In thousands)	Type	U.S. Dollar Equivalent		Maturity	Recognized Gain (Loss)
British pounds sterling	Sell	$	70,207	October 2017	$	(807	)
British pounds sterling	Buy	10,638		October 2017 through January 2018	17
Euros	Sell	317,163		October 2017 through December 2017	(19,028		)
Euros	Buy	196,214		October 2017 through May 2018	792
Other currencies	Sell	50,692		October 2017 through April 2018	(758		)
Other currencies	Buy	30,578		October 2017 through January 2018	239
Total		$	675,492		$	(19,545	)

Contracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at December 31, 2016:

(In thousands)	Type	U.S. Dollar Equivalent		Maturity	Recognized Gain (Loss)
British pounds sterling	Sell	$	55,120	January 2017	$	(228	)
British pounds sterling	Buy	827		March 2017	(14		)
Euros	Sell	326,797		January 2017 through December 2017	628
Euros	Buy	171,578		January 2017 through January 2018	(468		)
Other currencies	Sell	43,455		January 2017 through September 2017	1,477
Other currencies	Buy	3,106		March 2017	(1		)
Total		$	600,883		$	1,394

Schedule of fair value of financial instruments

The following table indicates the fair value hierarchy of the financial instruments of the Company:

Level 2 Fair Value Measurements (In thousands)	September 30 2017		December 31 2016
Assets
Foreign currency exchange forward contracts	$	3,245	$	4,932
Interest rate swaps	92		—
Cross-currency interest rate swaps	110		514
Liabilities
Foreign currency exchange forward contracts	22,790		3,538
Interest rate swaps	2,970		—

Schedule of the reconciliation of liabilities measured on a recurring basis using unobservable inputs

The following table reconciles the beginning and ending balances for liabilities measured on a recurring basis using unobservable inputs (Level 3):

Level 3 Liabilities—Unit Adjustment Liability (c) for the Nine Months Ended September 30 (In thousands)	Nine Months Ended
	September 30
	2016
Balance at beginning of period	$	79,934
Reduction in the fair value related to election not to make 2016 payments	(19,145		)
Sale of equity interest in Brand	(65,461		)
Change in fair value to the unit adjustment liability	4,672
Balance at end of period	$	—

(c) During the quarter ended March 31, 2016, the Company decided that it would not make the four quarterly payments to CD&R for 2016. This resulted in the Company revaluing the Unit Adjustment Liability. The Company sold its investment in Brand in September 2016 and the unit adjustment liability ceased at that time. See Note 4, Equity Method Investment, for additional information related to the unit adjustment liability.