Derivative Instruments, Hedging Activities and Fair Value (Tables)

6 Months Ended

Jun. 30, 2018

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
June 30, 2018
Derivatives designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	2,183	Other current liabilities	$	389
Interest rate swaps	Other current assets	1,623
Interest rate swaps	Other assets	3,142		Other liabilities	$	353
Total derivatives designated as hedging instruments		$	6,948		$	742
Derivatives not designated as hedging instruments:
Foreign currency exchange forward contracts	Other current assets	$	11,567	Other current liabilities	$	2,415

	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

Schedule of effect of derivative instruments

The effect of derivative instruments in 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 June 30, 2018:
Foreign currency exchange forward contracts	$	1,539			Product revenues	$	103			$	—
Interest rate swaps	2,071				Interest expense	(235		)		—
Cross-currency interest rate swaps	93			(a)	Interest expense	377				—
	$	3,703				$	245			$	—
Three Months Ended June 30, 2017:
Foreign currency exchange forward contracts	$	1,001			Product revenues/Cost of services and products sold	$	(186	)		$	—
Interest rate swaps	(2,021		)			—				—
Cross-currency interest rate swaps	3			(a)	Interest Expense	251			Cost of services and products sold	(107		)
	$	(1,017	)			$	65			$	(107	)

(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
Six Months Ended June 30, 2018:
Foreign currency forward exchange contracts	$	1,779			Product revenues / Cost of services and products sold	$	(109	)		$	—
Foreign currency forward exchange contracts	—				Retained earnings (b)	(1,520		)		—
Interest rate swaps	5,381				Interest expense	(235		)		—
Cross currency interest rate swaps	—				Interest expense	648				—
	$	7,160				$	(1,216	)		$	—
Six Months Ended June 30, 2017:
Foreign currency forward exchange contracts	$	763			Product revenues / Cost of services and products sold	$	(185	)		$	—
Interest rate swaps	(2,543		)			—				—
Cross currency interest rate swaps	(123		)	(a)	Interest expense	493			Cost of services and products sold	(317		)
	$	(1,903	)			$	308			$	(317	)

(a) Amounts represent changes in foreign currency translation related to balances in Accumulated other comprehensive loss.

(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.

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 June 30 (d)
(In thousands)		2018		2017
Foreign currency exchange forward contracts	Cost of services and products sold	$	15,731	$	(13,289	)

	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative for the Six Months Ended June 30 (d)
(In thousands)		2018		2017
Foreign currency forward exchange contracts	Cost of services and products sold	$	10,265	$	(11,739	)

(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 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 June 30, 2018:

(In thousands)	Type	U.S. Dollar Equivalent		Maturity	Recognized Gain (Loss)
British pounds sterling	Sell	$	96,546	July 2018 through October 2021	$	3,024
British pounds sterling	Buy	9,590		July 2018 through January 2019	(157		)
Euros	Sell	306,503		July 2018 through March 2019	8,258
Euros	Buy	192,929		July 2018 through November 2018	(1,435		)
Other currencies	Sell	41,096		July 2018 through December 2018	1,296
Other currencies	Buy	2,901		July 2018	(40		)
Total		$	649,565		$	10,946

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	)

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

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)	June 30 2018		December 31 2017
Assets
Foreign currency exchange forward contracts	$	13,750	$	5,244
Interest rate swaps	4,765		634
Liabilities
Foreign currency exchange forward contracts	2,804		7,123
Interest rate swaps	353		1,368

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