XML 33 R21.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Derivatives and Hedging Activity | 6 Months Ended
--- | ---
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activity |
13. |  | Derivatives and Hedging Activity
We are exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, we enter into various derivative instruments that reduce these risks by creating offsetting exposures. We generally do not enter into derivative transactions for trading or speculative purposes. Foreign Exchange Risk Management We are exposed to foreign exchange risk when we earn revenues, pay expenses, or enter into monetary intercompany transfers denominated in a currency that differs from our functional currency, or other transactions that are denominated in a currency other than our functional currency. We use foreign exchange derivatives, typically forward contracts and options, to reduce our overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than two years. Interest Rate Risk Management We enter into various long-term debt agreements. We use interest rate derivatives, typically swaps, to reduce our exposure to the effects of interest rate fluctuations on the forecasted interest rates for up to two years into the future. We have not received or pledged any collateral related to derivative arrangements at June 30, 2018. The notional and fair values of derivative instruments are as follows at June 30, 2018 and December 31, 2017 (in millions):
|  | Notional Amount |  |  | Derivative Assets (1) |  |  | Derivative Liabilities (2) |
|  | June 30, 2018 |  |  | Dec 31, 2017 |  |  | June 30, 2018 |  |  | Dec 31, 2017 |  |  | June 30, 2018 |  |  | Dec 31, 2017 |
Derivatives accounted for as hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 200.0 |  |  | $ | 200.0 |  |  | $ | 5.2 |  |  | $ | 2.2 |  |  | $ | — |  |  | $ | — |
Foreign exchange contracts (3) |  |  | 24.0 |  |  |  | 18.7 |  |  |  | 2.7 |  |  |  | 8.1 |  |  |  | 6.2 |  |  |  | 2.9 |
Total |  | $ | 224.0 |  |  | $ | 218.7 |  |  | $ | 7.9 |  |  | $ | 10.3 |  |  | $ | 6.2 |  |  | $ | 2.9 |
(1) | Included within other current assets, $7.1 million and $7.7 million at June 30, 2018 and December 31, 2017, respectively, and other noncurrent assets, $0.8 million and $2.7 million at June 30, 2018 and December 31, 2017, respectively.
(2) | Included within other current liabilities, $3.7 million and $1.6 million at June 30, 2018 and December 31, 2017, respectively, and other noncurrent liabilities, $2.5 million and $1.3 million at June 30, 2018 and December 31, 2017, respectively.
(3) | Included within foreign exchange contracts at June 30, 2018 were $96.3 million of call options offset with $92.0 million of put options, and $27.2 million of buy forwards. Included within foreign exchange contracts at December 31, 2017 were $141.0 million of call options offset with $141.0 million of put options, and $13.3 million of buy forwards offset with $31.0 million of sell forwards.
The amounts of derivative gains (losses) recognized in accumulated other comprehensive loss for the six-month periods ended June 30, 2018 and 2017 were as follows (in millions):
|  | Commission |  |  | Compensation |  |  | Operating |  |  | Interest |  |  |  |
|  | Revenue |  |  | Expense |  |  | Expense |  |  | Expense |  |  | Total |
June 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5.9 |  |  | $ | 5.9 |
Foreign exchange contracts |  |  | (2.5 | ) |  |  | (2.1 | ) |  |  | (1.5 | ) |  |  | — |  |  |  | (6.1 | )
Total |  | $ | (2.5 | ) |  | $ | (2.1 | ) |  | $ | (1.5 | ) |  | $ | 5.9 |  |  | $ | (0.2 | )
June 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (3.0 | ) |  | $ | (3.0 | )
Foreign exchange contracts |  |  | 6.0 |  |  |  | 2.0 |  |  |  | 1.4 |  |  |  | — |  |  |  | 9.4 |
Total |  | $ | 6.0 |  |  | $ | 2.0 |  |  | $ | 1.4 |  |  | $ | (3.0 | ) |  | $ | 6.4 |
The amounts of derivative gains (losses) reclassified from accumulated other comprehensive loss into income (effective portion) for the six-month periods ended June 30, 2018 and 2017 were as follows (in millions):
|  | Commission |  |  | Compensation |  |  | Operating |  |  | Interest |  |  |  |
|  | Revenue |  |  | Expense |  |  | Expense |  |  | Expense |  |  | Total |
June 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.5 |  |  | $ | 0.5 |
Foreign exchange contracts |  |  | 1.1 |  |  |  | 0.9 |  |  |  | 0.6 |  |  |  | — |  |  |  | 2.6 |
Total |  | $ | 1.1 |  |  | $ | 0.9 |  |  | $ | 0.6 |  |  | $ | 0.5 |  |  | $ | 3.1 |
June 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange contracts |  |  | (5.3 | ) |  |  | 0.7 |  |  |  | 0.5 |  |  |  | — |  |  |  | (4.1 | )
Total |  | $ | (5.3 | ) |  | $ | 0.7 |  |  | $ | 0.5 |  |  | $ | — |  |  | $ | (4.1 | )
We estimate that approximately $2.2 million of pretax loss currently included within accumulated other comprehensive loss will be reclassified into earnings in the next twelve months. The amount of gain (loss) recognized in earnings on the ineffective portion of derivatives for the six-month periods ended June 30, 2018 and 2017 was ($0.1) million and $0.4 million, respectively.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration