Financial Instruments (Tables)
|
9 Months Ended |
Sep. 30, 2016 |
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| 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 September 30, 2016 and December 31, 2015 consisted of the following: | | | | | | | | | | | | | | | | | | September 30, 2016 | | December 31, 2015 | (DOLLARS IN THOUSANDS) | Carrying
Amount | | Fair
Value | | Carrying
Amount | | Fair
Value | Cash and cash equivalents (1) | $ | 498,730 |
| | $ | 498,730 |
| | $ | 181,988 |
| | $ | 181,988 |
| Credit facilities and bank overdrafts (2) | 13,112 |
| | 13,112 |
| | 142,178 |
| | 142,178 |
| Long-term debt: (3) | | | | | | | | Senior notes - 2006 | — |
| | — |
| | 124,964 |
| | 127,717 |
| Senior notes - 2007 | 499,638 |
| | 577,132 |
| | 499,618 |
| | 563,855 |
| Senior notes - 2013 | 297,916 |
| | 316,742 |
| | 297,683 |
| | 290,830 |
| Euro Senior notes - 2016 | 555,381 |
| | 604,035 |
| | — |
| | — |
|
| | (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 September 30, 2016 and December 31, 2015: | | | | | | | | | (DOLLARS IN THOUSANDS) | September 30, 2016 | | December 31, 2015 | Foreign currency contracts | $ | 881,600 |
| | $ | 573,200 |
| Interest rate swaps | $ | 350,000 |
| | $ | 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 September 30, 2016 and December 31, 2015: | | | | | | | | | | | | | | September 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 | $ | 2,411 |
| | $ | 4,210 |
| | $ | 6,621 |
| Interest rate swaps | 2,326 |
| | — |
| | 2,326 |
| | $ | 4,737 |
| | $ | 4,210 |
| | $ | 8,947 |
| Derivative liabilities (b) | | | | | | Foreign currency contracts | $ | 1,588 |
| | $ | 5,851 |
| | $ | 7,439 |
| | $ | 1,588 |
| | $ | 5,851 |
| | $ | 7,439 |
|
| | | | | | | | | | | | | | 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 nine months ended September 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 September 30, | | | | 2016 | | 2015 | | | Foreign currency contracts | $ | (3,313 | ) | | $ | (1,979 | ) | | 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 | | Nine Months Ended September 30, | | | | 2016 | | 2015 | | | Foreign currency contracts | $ | (6,860 | ) | | $ | 8,097 |
| | 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 nine months ended September 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 September 30, | | | | Three Months Ended September 30, | | 2016 | | 2015 | | | | 2016 | | 2015 | Derivatives in Cash Flow Hedging Relationships: | | | | | | | | | | Foreign currency contracts | $ | 98 |
| | $ | (7,794 | ) | | Cost of goods sold | | $ | (544 | ) | | $ | 6,956 |
| Interest rate swaps (1) | 171 |
| | (4,703 | ) | | Interest expense | | (171 | ) | | (69 | ) | Derivatives in Net Investment Hedging Relationships: | | | | | | | | | | Foreign currency contracts | (224 | ) | | (547 | ) | | N/A | | — |
| | — |
| Euro Senior notes - 2016 | (2,856 | ) | | — |
| | N/A | | — |
| | — |
| Total | $ | (2,811 | ) | | $ | (13,044 | ) | | | | $ | (715 | ) | | $ | 6,887 |
| | | | | | | | | | | | 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) | | Nine Months Ended September 30, | | | | Nine Months Ended September 30, | | 2016 | | 2015 | | | | 2016 | | 2015 | Derivatives in Cash Flow Hedging Relationships: | | | | | | | | | | Foreign currency contracts | $ | (6,293 | ) | | $ | (1,815 | ) | | Cost of goods sold | | $ | 4,808 |
| | $ | 11,540 |
| Interest rate swaps (1) | (2,830 | ) | | (4,565 | ) | | Interest expense | | (428 | ) | | (207 | ) | |
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| | | | | |
|
| | | Derivatives in Net Investment Hedging Relationships: | | | | | | | | | | Foreign currency contracts | (694 | ) | | 2,984 |
| | N/A | | — |
| | — |
| Euro Senior notes - 2016 | 6,793 |
| | — |
| | N/A | | — |
| | — |
| Total | $ | (3,024 | ) | | $ | (3,396 | ) | | | | $ | 4,380 |
| | $ | 11,333 |
|
(1) Interest rate swaps were entered into as pre-issuance hedges. |