Derivative Instruments, Hedging Activities and Fair Value (Tables)
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3 Months Ended |
Mar. 31, 2018 |
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| Derivative Instruments, Hedging Activities And Fair Value Disclosure [Abstract] |
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| 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 | March 31, 2018 | | | | | | | | | Derivatives designated as hedging instruments: | Foreign currency exchange forward contracts | | Other current assets | | $ | 1,755 |
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| Interest rate swaps | | Other current assets | | 1,198 |
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| Interest rate swaps | | Other assets | | 1,991 |
| | Other liabilities | | $ | 612 |
| Total derivatives designated as hedging instruments | | | | $ | 4,944 |
| | | | $ | 612 |
| Derivatives not designated as hedging instruments: | Foreign currency exchange forward contracts | | Other current assets | | $ | 3,528 |
| | Other current liabilities | | $ | 9,227 |
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| | | | | | | | | | | | | | | | Asset Derivatives | | Liability Derivatives | (In thousands) | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | December 31, 2017 | | | | | | | | | Derivatives designated as hedging instruments: | Foreign currency exchange forward contracts | | Other current assets | | $ | 2,329 |
| | Other current liabilities | | $ | 153 |
| Interest rate swaps | | Other current assets | | 464 |
| | | | | Interest rate swaps | | Other assets | | 170 |
| | Other liabilities | | 1,368 |
| Total derivatives designated as hedging instruments | | | | $ | 2,963 |
| | | | $ | 1,521 |
| Derivatives not designated as hedging instruments: | Foreign currency exchange forward contracts | | Other current assets | | $ | 2,915 |
| | Other current liabilities | | $ | 6,970 |
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| 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, 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 or Equity | | 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 March 31, 2018: | Foreign currency exchange forward contracts | | $ | 240 |
| | Product revenues | | $ | (212 | ) | | | | $ | — |
| | Foreign currency exchange forward contracts | | — |
| | Retained earnings (b) | | (1,520 | ) | | | | — |
| | Interest rate swaps | | 3,310 |
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| | Cross-currency interest rate swaps | | (93 | ) | (c) | Interest expense | | 271 |
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| | | | $ | 3,457 |
| | | | $ | (1,461 | ) | | | | $ | — |
| | Three Months Ended March 31, 2017: | Foreign currency exchange forward contracts | | $ | (236 | ) | | Cost of services and products sold | | $ | 1 |
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| | $ | — |
| | Interest rate swaps | | (522 | ) | | | | — |
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| | Cross-currency interest rate swaps | | (128 | ) | | Interest Expense | | 242 |
| | Cost of services and products sold | | (210 | ) | (a) | | | $ | (886 | ) | | | | $ | 243 |
| | | | $ | (210 | ) | |
(a) These gains (losses) offset foreign currency fluctuation effects on the debt principal. (b) The Company has adopted the new revenue recognition standard utilizing the modified retrospective transition method, including use of practical expedients. See Note 2, Recently Adopted and Recently Issued Accounting Standards for additional information. (c) Amounts represent changes in foreign currency translation related to balances in Accumulated other comprehensive loss.
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 March 31 (d) | (In thousands) | | | 2018 | | 2017 | Foreign currency exchange forward contracts | | Cost of services and products sold | | $ | (5,466 | ) | | $ | 1,550 |
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(d) 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 March 31, 2018: | | | | | | | | | | | | Annual Notional Amount | | Interest Rates | (In millions) | | | Receive | | Pay | Maturing 2018 through 2022 | | $ | 300.0 |
| | Floating U.S. dollar rate | | Fixed U.S. dollar 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 March 31, 2018: | | | | | | | | | | | | | | (In thousands) | | Type | | U.S. Dollar Equivalent | | Maturity | | Recognized Gain (Loss) | British pounds sterling | | Sell | | $ | 77,579 |
| | April 2018 | | $ | (202 | ) | British pounds sterling | | Buy | | 10,789 |
| | April 2018 through May 2018 | | 134 |
| Euros | | Sell | | 311,405 |
| | April 2018 through December 2018 | | (6,322 | ) | Euros | | Buy | | 203,648 |
| | April 2018 through November 2018 | | 3,613 |
| Other currencies | | Sell | | 41,660 |
| | April 2018 through August 2018 | | (1,148 | ) | Other currencies | | Buy | | 2,901 |
| | April 2018 | | (19 | ) | Total | | | | $ | 647,982 |
| | | | $ | (3,944 | ) |
Contracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at December 31, 2017: | | | | | | | | | | | | | | (In thousands) | | Type | | U.S. Dollar Equivalent | | Maturity | | Recognized Gain (Loss) | British pounds sterling | | Sell | | $ | 76,761 |
| | January 2018 | | $ | (769 | ) | British pounds sterling | | Buy | | 5,960 |
| | January 2018 | | 72 |
| Euros | | Sell | | 314,649 |
| | January 2018 through December 2018 | | (4,916 | ) | Euros | | Buy | | 223,111 |
| | January 2018 through November 2018 | | 4,564 |
| Other currencies | | Sell | | 39,889 |
| | January 2018 through June 2018 | | (1,049 | ) | Other currencies | | Buy | | 11,487 |
| | January 2018 | | 219 |
| Total | | | | $ | 671,857 |
| | | | $ | (1,879 | ) |
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| 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) | | March 31
2018 | | December 31
2017 | Assets | | |
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| Foreign currency exchange forward contracts | | $ | 5,283 |
| | $ | 5,244 |
| Interest rate swaps | | 3,189 |
| | 634 |
| Liabilities | | |
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| Foreign currency exchange forward contracts | | 9,227 |
| | 7,123 |
| Interest rate swaps | | 612 |
| | 1,368 |
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| Schedule of the reconciliation of liabilities measured on a recurring basis using unobservable inputs |
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