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Derivatives (Notes) | 9 Months Ended
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Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 6. DERIVATIVES Our business and financial results are affected by fluctuations in global 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 contracts to reduce the effects of fluctuations in exchange rates relating to certain foreign currencies. As of September 30, 2020, we have currency forward contracts outstanding with a total notional amount of $155.8 million that hedge our exposure to changes in foreign currency exchange rates for certain payroll expenses into the second quarter of 2023 and other items into the second quarter of 2021. Fixed-to-fixed cross-currency swap In 2019, we entered into a fixed-to-fixed cross-currency swap to reduce the variability of functional currency equivalent cash flows associated with changes in exchange rates on certain Euro-based intercompany loans. In the first quarter of 2020, we discontinued this fixed-to-fixed cross-currency swap, which was in an asset position of $9.8 million on the date that it was discontinued. Also in the first quarter of 2020, we entered into a new fixed-to-fixed cross-currency swap to reduce the variability of functional currency equivalent cash flows associated with changes in exchange rates on certain Euro-based intercompany loans. As of September 30, 2020, the notional amount of the fixed-to-fixed cross-currency swap was $234.4 million, and hedges our exposure to changes in exchange rates on the intercompany loans into the second quarter of 2024. Variable-to-fixed interest rate swap In 2019, 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: $900.0 million through May 2021, $750.0 million through May 2022, $600.0 million through May 2023 and $500.0 million through May 2024. The following table summarizes the reclassification of derivative gains and losses into net income from accumulated other comprehensive income (loss) for those derivative instruments designated as cash flow hedges under ASC 815 - Derivatives and Hedging:
|  | Location |  | Gain (Loss) Reclassified During |  | Total of Financial |  | Gain (Loss) Expected
|  | of Gain (Loss) |  | Three Months Ended |  | Nine Months Ended |  | Statement |  | to be Reclassified
|  | Reclassified into |  | September 30, |  | September 30, |  | Line Item |  | During the
|  | Net Income |  | 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | Next 12 Months
|  |  |  | (in millions)
Currency forward contracts |  | Cost of Goods Sold |  | $ | (1.3) |  |  | $ | 0.9 |  |  | $ | (2.3) |  |  | $ | 1.8 |  |  | $ | 2,926.7 |  |  | $ | (2.6) |
Fixed-to-fixed cross-currency swap |  | Other Income (Expense), net |  | (9.3) |  |  | 7.6 |  |  | (9.3) |  |  | 7.6 |  |  | (3.8) |  |  | 1.7 |
Variable-to-fixed interest rate swap |  | Interest Expense |  | (4.1) |  |  | (1.7) |  |  | (10.1) |  |  | 0.2 |  |  | (160.0) |  |  | (15.9) |
See Note 12 - 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, 2020 and 2019. The following table summarizes the amount and location of gains and losses recognized in the Condensed Consolidated Statements of Operations for those derivative instruments not designated as hedging instruments under ASC 815:
|  |  |  | Gain (Loss) Recognized During |  | Total of Financial
|  | Location of Gain (Loss) |  | Three Months Ended |  | Nine Months Ended |  | Statement Line
|  | Recognized in |  | September 30, |  | September 30, |  | Item
|  | Net Income |  | 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020
|  |  |  | (in millions)
Currency forward contracts |  | Cost of Goods Sold |  | $ | 0.9 |  |  | $ | (0.5) |  |  | $ | (6.7) |  |  | $ | 1.3 |  |  | $ | 2,926.7 |
Currency forward contracts |  | Other Income (Expense), net |  | — |  |  | 0.1 |  |  | (0.5) |  |  | (0.5) |  |  | (3.8) |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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