Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Investments, All Other Investments [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

The amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at June 30, 2016 and December 31, 2015 consisted of the following:



	June 30, 2016				December 31, 2015
(DOLLARS IN THOUSANDS)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents ⁽¹⁾	$	539,992	$	539,992	$	181,988	$	181,988
Credit facilities and bank overdrafts ⁽²⁾	15,791		15,791		142,178		142,178
Long-term debt: ⁽³⁾
Senior notes - 2006	124,991		125,225		124,964		127,717
Senior notes - 2007	499,618		578,590		499,618		563,855
Senior notes - 2013	297,846		312,847		297,683		290,830
Euro Senior notes - 2016	550,598		584,953		—		—


(1)	The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments.


(2)	The carrying amount of our credit facilities and bank overdrafts approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments.


(3)	The fair value of our long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on our own credit risk.

Derivative Instruments Notional Amount Outstanding

The following table shows the notional amount of the Company’s derivative instruments outstanding as of June 30, 2016 and December 31, 2015:



(DOLLARS IN THOUSANDS)	June 30, 2016		December 31, 2015
Foreign currency contracts	$	805,900	$	573,200
Interest rate swaps	$	475,000	$	475,000

Derivative Instruments Measured at Fair Value

The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015:



	June 30, 2016
(DOLLARS IN THOUSANDS)	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
Derivative assets ^(a)
Foreign currency contracts	$	4,038	$	12,159	$	16,197
Interest rate swaps	4,341		—		4,341
	$	8,379	$	12,159	$	20,538
Derivative liabilities ^(b)
Foreign currency contracts	$	1,353	$	9,274	$	10,627
	$	1,353	$	9,274	$	10,627



	December 31, 2015
(DOLLARS IN THOUSANDS)	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
Derivative assets ^(a)
Foreign currency contracts	$	6,560	$	3,700	$	10,260
Interest rate swaps	1,210		—		1,210
	$	7,770	$	3,700	$	11,470
Derivative liabilities ^(b)
Foreign currency contracts	$	2,106	$	3,022	$	5,128


(a)	Derivative assets are recorded to Prepaid expenses and other current assets in the Consolidated Balance Sheet.


(b)	Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet.

Derivative Instruments Which Were Not Designated as Hedging Instruments

The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2016 and 2015 (in thousands):



Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income on Derivative					Location of Gain (Loss) Recognized in Income on Derivative
	Three Months Ended June 30,
	2016			2015
Foreign currency contracts	$	1,395		$	371	Other (income) expense, net
Derivatives Not Designated as Hedging Instruments	Amount of Gain (Loss) Recognized in Income on Derivative					Location of Gain (Loss) Recognized in Income on Derivative
	Six Months Ended June 30,
	2016			2015
Foreign currency contracts	$	(3,548	)	$	10,075	Other (income) expense, net

Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments

The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments in the Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2016 and 2015 (in thousands):



	Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion)						Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion)
	Three Months Ended June 30,							Three Months Ended June 30,
	2016			2015				2016			2015
Derivatives in Cash Flow Hedging Relationships:
Foreign currency contracts	$	612		$	(6,035	)	Cost of goods sold	$	2,736		$	3,561
Interest rate swaps ⁽¹⁾	171			69			Interest expense	(171		)	(69		)
Derivatives in Net Investment Hedging Relationships:
Foreign currency contracts	1,934			(1,030		)	N/A	—			—
Euro Senior notes - 2016	9,649			—			N/A	—			—
Total	$	12,366		$	(6,996	)		$	2,565		$	3,492

	Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion)						Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion)
	Six Months Ended June 30,							Six Months Ended June 30,
	2016			2015				2016			2015
Derivatives in Cash Flow Hedging Relationships:
Foreign currency contracts	$	(6,391	)	$	5,979		Cost of goods sold	$	5,352		$	4,584
Interest rate swaps ⁽¹⁾	(3,001		)	138			Interest expense	(257		)	(138		)
Derivatives in Net Investment Hedging Relationships:
Foreign currency contracts	(470		)	3,531			N/A	—			—
Euro Senior notes - 2016	9,649			—			N/A	—			—
Total	$	(213	)	$	9,648			$	5,095		$	4,446

(1) Interest rate swaps were entered into as pre-issuance hedges.