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Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2018
Investments, All Other Investments [Abstract]  
Carrying Amount and Estimated Fair Values of Financial Instruments
The principal amounts and the estimated fair values of financial instruments at September 30, 2018 and December 31, 2017 consisted of the following: 
 
September 30, 2018
 
December 31, 2017
(DOLLARS IN THOUSANDS)
Principal(4)
 
Fair Value
 
Principal(4)
 
Fair Value
LEVEL 1
 
 
 
 
 
 
 
TEUs
$
825,000

 
$
948,750

 
$
—

 
$
—

Cash and cash equivalents(1)
$
5,274,459

 
$
5,274,459

 
$
368,046

 
$
368,046

LEVEL 2
 
 
 
 
 
 
 
Credit facilities and bank overdrafts(2)
111,029

 
111,029

 
7,993

 
7,993

Commercial paper (2)
—

 

 
—

 
—

Long-term debt:(3)
 
 
 
 
 
 
 
Senior notes - 2007
—

 
—

 
250,000

 
293,232

Senior notes - 2013
300,000

 
292,870

 
300,000

 
304,219

Euro Senior notes - 2016
586,950

 
603,989

 
594,400

 
627,782

Senior notes - 2017
500,000

 
455,060

 
500,000

 
525,906

2020 Notes
300,000

 
301,634

 
—

 
—

2021 Euro Notes
352,170

 
352,691

 
—

 
—

2026 Euro Notes
939,120

 
940,360

 
—

 
—

2028 Notes
400,000

 
401,405

 
—

 
—

2048 Notes
800,000

 
799,208

 
—

 
—

_______________________
(1)
The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments.
(2)
The carrying amount 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 the Company's long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on its own credit risk.
(4)
See Note 7 for carrying amounts.
Derivative Instruments Notional Amount Outstanding
The following table shows the notional amount of the Company’s derivative instruments outstanding as of September 30, 2018 and December 31, 2017: 
(DOLLARS IN THOUSANDS)
September 30, 2018
 
December 31, 2017
Foreign currency contracts
$
411,788

 
$
896,947

Interest rate swaps
—

 
150,000
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 Sheet as of September 30, 2018 and December 31, 2017: 
 
September 30, 2018
(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
$
2,644

 
$
7,689

 
$
10,333

Derivative liabilities (b)
 
 
 
 
 
Foreign currency contract
371

 
4,400

 
4,771

 
December 31, 2017
(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
$
1,159

 
$
3,978

 
$
5,137

Derivative liabilities (b)
 
 
 
 
 
Foreign currency contracts
7,842

 
4,344

 
12,186

Interest rate swaps
1,369

 
—

 
1,369

Total derivative liabilities
$
9,211

 
$
4,344

 
$
13,555

 _______________________
(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 Income and Comprehensive Income for the three and nine months ended September 30, 2018 and 2017 (in thousands): 

 
Amount of Gain (Loss)
 
Location of Gain (Loss) Recognized in Income on Derivative
(DOLLARS IN THOUSANDS)
Three Months Ended September 30,
 
2018
 
2017
 
Foreign currency contracts
$
8,277

 
$
4,024

 
Other income, net
Deal contingent swaps
 
 
 
 
 
Foreign currency contract
1,175

 
—

 
Other income, net
Interest rate swaps
25,289

 
—

 
Interest expense
 
$
34,741

 
$
4,024

 
 

 
Amount of Gain (Loss)
 
Location of Gain (Loss) Recognized in Income on Derivative
 
Nine Months Ended September 30,
 
(DOLLARS IN THOUSANDS)
2018
 
2017
 
Foreign currency contracts (1)
$
9,347

 
$
(9,157
)
 
Other income, net
Deal contingent swaps
 
 
 
 
 
Foreign currency contract
12,154

 
—

 
Other income, net
Interest rate swaps
352

 
—

 
Interest expense
 
$
21,853

 
$
(9,157
)
 
 
 _______________________
(1)
Most of these net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods.
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, net of tax, in the Consolidated Statement of Income and Comprehensive Income for the three and nine months ended September 30, 2018 and 2017 (in thousands): 
 
Amount of Gain (Loss) 
Recognized in OCI on
Derivative (Effective
Portion)
 
Location of Gain (Loss) Reclassified from
AOCI into Income (Effective Portion)
 
Amount of Gain (Loss) 
Reclassified from
Accumulated OCI into
Income (Effective
Portion)
 
Three Months Ended September 30,
 
 
Three Months Ended September 30,
 
2018
 
2017
 
 
2018
 
2017
Derivatives in Cash Flow Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
$
2,206

 
$
(4,229
)
 
Cost of goods sold
 
$
(2,848
)
 
$
1,815

Interest rate swaps (1)
216

 
216

 
Interest expense
 
(216
)
 
(216
)
Derivatives in Net Investment Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts


 
(1,130
)
 
N/A
 
—

 
—

Euro Senior notes - 2016
(7,104
)
 
(11,861
)
 
N/A
 
—

 
—

2021 Euro Notes & 2026 Euro Notes
705

 
—

 
N/A
 
—

 
—

Total
$
(3,977
)
 
$
(17,004
)
 
 
 
$
(3,064
)
 
$
1,599

 
 
 
 
 
 
 
 
 
 
 
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,
 
2018
 
2017
 
 
2018
 
2017
Derivatives in Cash Flow Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
$
11,704

 
$
(13,505
)
 
Cost of goods sold
 
$
(7,371
)
 
$
4,062

Interest rate swaps (1)
648

 
(4,027
)
 
Interest expense
 
(648
)
 
(573
)
 
 
 
 
 
 
 
 
 
 
Derivatives in Net Investment Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
(518
)
 
(4,258
)
 
N/A
 
—

 
—

Euro Senior notes - 2016
5,601

 
(43,050
)
 
N/A
 
—

 
—

2021 Euro Notes & 2026 Euro Notes
705

 
—

 
N/A
 
—

 
—

Total
$
18,140

 
$
(64,840
)
 
 
 
$
(8,019
)
 
$
3,489

 _______________________
(1)
Interest rate swaps were entered into as pre-issuance hedges for bond offerings.