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Derivatives | 9 Months Ended
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Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
8. | DERIVATIVES
Our business and financial results are affected by fluctuations in world financial markets, including interest rates and currency exchange rates. Our hedging policy has been developed to manage these risks to an acceptable level based on management’s judgment of the appropriate trade-off between risk, opportunity and cost. We do not hold financial instruments for trading or speculative purposes. Currency derivative contracts From time to time, we use foreign currency forward and option contracts to reduce the effects of fluctuations in exchange rates relating to the Mexican Peso, Euro, Brazilian Real, British Pound Sterling, Thai Baht, Swedish Krona, Chinese Yuan, Polish Zloty and Indian Rupee. As of September 30, 2017, we have currency forward and option contracts outstanding with a notional amount of $218.1 million that hedge our exposure to changes in foreign currency exchange rates for certain payroll expenses into the second quarter of 2020 and certain direct and indirect inventory and other working capital items into the second quarter of 2018. Variable-to-fixed interest rate swap In the second quarter of 2017, we entered into a variable-to-fixed interest rate swap to reduce the variability of cash flows associated with interest payments on our variable rate debt. We have the following notional amounts hedged in relation to our variable-to-fixed interest rate swap: $750.0 million through May 2018, $600.0 million through May 2019, $450.0 million through May 2020 and $200.0 million through May 2021. The following table summarizes the reclassification of derivative losses into net income from accumulated other comprehensive loss for those derivative instruments designated as cash flow hedges under Accounting Standards Codification 815 - Derivatives and Hedging (ASC 815):
|  |  |  | Loss Reclassified During |  | Loss Expected to
|  | Location of Loss |  | Three Months Ended |  | Nine Months Ended |  | be Reclassified
|  | Reclassified into |  | September 30, |  | September 30, |  | During the
|  | Net Income |  | 2017 |  | 2016 |  | 2017 |  | 2016 |  | Next 12 Months
|  |  |  | (in millions)
Currency forward contracts |  | Cost of Goods Sold |  | $ | (0.7 | ) |  | $ | (2.6 | ) |  | $ | (4.6 | ) |  | $ | (6.9 | ) |  | $ | (2.6 | )
Variable-to-fixed interest rate swap |  | Interest Expense |  | — |  |  | — |  |  | — |  |  | — |  |  | (0.1 | )
See Note 13 - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (AOCI) for amounts recognized in other comprehensive income (loss) during the three and nine months ended September 30, 2017 and 2016. The following table summarizes the amount and location of gains (losses) recognized in the Condensed Consolidated Statements of Income for those derivative instruments not designated as hedging instruments under ASC 815:
|  |  |  | Gain (Loss) Recognized During
|  | Location of Gain (Loss) |  | Three Months Ended |  | Nine Months Ended
|  | Recognized in |  | September 30, |  | September 30,
|  | Net Income |  | 2017 |  | 2016 |  | 2017 |  | 2016
|  |  |  | (in millions) |  |  |  |
Currency forward contracts |  | Cost of Goods Sold |  | $ | 0.4 |  |  | $ | (1.3 | ) |  | $ | 6.1 |  |  | $ | (4.0 | )
Currency forward contracts |  | Other Income, Net |  | — |  |  | — |  |  | — |  |  | (0.7 | )
Currency option contracts |  | Cost of Goods Sold |  | 0.3 |  |  | — |  |  | 1.4 |  |  | — |

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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