XML 90 R36.htm IDEA: XBRL DOCUMENT v3.19.3
Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2019
Investments, All Other Investments [Abstract]  
Carrying Amount and Estimated Fair Values of Financial Instruments
The carrying values and the estimated fair values of financial instruments at September 30, 2019 and December 31, 2018 consisted of the following: 
 
September 30, 2019
 
December 31, 2018
(DOLLARS IN THOUSANDS)
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
LEVEL 1
 
 
 
 
 
 
 
Cash and cash equivalents(1)
$
494,897

 
$
494,897

 
$
634,897

 
$
634,897

LEVEL 2
 
 
 
 
 
 
 
Credit facilities and bank overdrafts(2)
4,515

 
4,515

 
4,695

 
4,695

Derivatives
 
 
 
 
 
 
 
Derivative assets
—

 
11,555

 
—

 
7,229

Derivative liabilities
—

 
1,149

 
—

 
6,907

Long-term debt:(3)
 
 
 
 
 
 
 
2020 Notes
299,167

 
303,360

 
298,499

 
300,356

2021 Euro Notes
325,993

 
331,248

 
337,704

 
341,094

2023 Notes
298,928

 
305,439

 
298,698

 
293,017

2024 Euro Notes
544,389

 
579,027

 
564,034

 
584,129

2026 Euro Notes
868,289

 
929,034

 
899,886

 
909,439

2028 Notes
396,611

 
442,000

 
396,377

 
401,231

2047 Notes
493,466

 
515,700

 
493,151

 
446,725

2048 Notes
785,943

 
907,008

 
785,788

 
783,925

Term Loan(2)
282,493

 
283,000

 
349,163

 
350,000

Amortizing Notes(4)
93,106

 
95,985

 
125,007

 
127,879

_______________________
(1)
The carrying amount 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)
The fair value of the Amortizing Notes of the TEUs is based on the most recently quoted price for the outstanding securities, adjusted for any known significant deviation in value. The estimated fair value of these long-term obligations is not necessarily indicative of the amount that would be realized in a current market exchange.
Derivative Instruments Notional Amount Outstanding
The following table shows the notional amount of the Company’s derivative instruments outstanding as of September 30, 2019 and December 31, 2018: 
(DOLLARS IN THOUSANDS)
September 30, 2019
 
December 31, 2018
Foreign currency contracts
$
411,436

 
$
585,581

Cross currency swaps
600,000

 
600,000
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, 2019 and December 31, 2018: 
 
September 30, 2019
(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
$
4,326

 
$
1,501

 
$
5,827

Cross currency swaps
5,728

 
—

 
5,728

 
$
10,054

 
$
1,501

 
$
11,555

Derivative liabilities(b)
 
 
 
 
 
Foreign currency contract
$
119

 
$
1,030

 
$
1,149

 
December 31, 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
$
4,122

 
$
2,020

 
$
6,142

Cross currency swaps
1,087

 
—

 
1,087

 
$
5,209

 
$
2,020

 
$
7,229

Derivative liabilities(b)
 
 
 
 
 
Foreign currency contracts
$
205

 
$
6,702

 
$
6,907

 _______________________
(a)
Derivative assets are recorded to Prepaid expenses and Other 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 (Loss) Income for the three and nine months ended September 30, 2019 and 2018 (in thousands): 
 
Amount of Gain (Loss)
 
Location of Gain (Loss) Recognized in Income on Derivative
(DOLLARS IN THOUSANDS)
Three Months Ended September 30,
 
2019
 
2018
 
Foreign currency contracts(1)
$
(4,392
)
 
$
8,277

 
Other (income) expense, net
Deal contingent swaps(2)
 
 
 
 
 
Foreign currency contracts
—

 
1,175

 
Other income, net
Interest rate swaps
—

 
25,289

 
Interest expense
Total
(4,392
)
 
34,741

 
 
 
Amount of Gain (Loss)
 
Location of Gain (Loss) Recognized in Income on Derivative
 
Nine Months Ended September 30,
 
(DOLLARS IN THOUSANDS)
2019
 
2018
 
Foreign currency contracts(1)
$
(7,398
)
 
$
9,347

 
Other income, net
Deal contingent swaps(2)
 
 
 
 
 
Foreign currency contracts
—

 
12,154

 
Other income, net
Interest rate swaps
—

 
352

 
Interest expense
Total
$
(7,398
)
 
$
21,853

 
 

 _______________________
(1)
The foreign currency contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods.
(2)
In the second quarter of 2018, the Company entered into a foreign currency contract and two interest rate swap agreements, which were contingent upon the closing of the Frutarom acquisition.
Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments
The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statement of Income and Comprehensive (Loss) Income for the three and nine months ended September 30, 2019 and 2018 (in thousands): 
 
Amount of Gain (Loss) 
Recognized in OCI on
Derivative
 
Location of Gain (Loss) Reclassified from
AOCI into Income
 
Amount of Gain (Loss) 
Reclassified from
Accumulated OCI into
Income
 
Three Months Ended September 30,
 
 
Three Months Ended September 30,
 
2019
 
2018
 
 
2019
 
2018
Derivatives in Cash Flow Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
$
2,438

 
$
2,206

 
Cost of goods sold
 
$
1,924

 
$
1,815

Interest rate swaps (1)
216

 
216

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

 
—

 
N/A
 
—

 
—

Cross currency swaps
17,803

 
—

 
N/A
 
—

 
—

Non-Derivatives in Net Investment Hedging Relationships:
 
 
 
 
 
 
 
 
 
2024 Euro Notes
16,437

 
(7,104
)
 
N/A
 
—

 
—

2021 Euro Notes & 2026 Euro Notes
36,162

 
705

 
N/A
 
—

 
—

Total
$
73,056

 
$
(3,977
)
 
 
 
$
1,708

 
$
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,
 
2019
 
2018
 
 
2019
 
2018
Derivatives in Cash Flow Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
$
(265
)
 
$
11,704

 
Cost of goods sold
 
$
6,619

 
$
(7,371
)
Interest rate swaps (1)
644

 
648

 
Interest expense
 
(644
)
 
(648
)
Derivatives in Net Investment Hedging Relationships:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
—

 
(518
)
 
N/A
 
—

 
—

Cross currency swaps
24,408

 
—

 
N/A
 
—

 
—

Non-Derivatives in Net Investment Hedging Relationships:
 
 
 
 
 
 
 
 
 
2024 Euro Notes
15,820

 
5,601

 
N/A
 
—

 
—

2021 Euro Notes & 2026 Euro Notes
34,804

 
705

 
N/A
 
—

 
—

Total
$
75,411

 
$
18,140

 
 
 
$
5,975

 
$
(8,019
)
 _______________________
(1)
Interest rate swaps were entered into as pre-issuance hedges for bond offerings.