XML 46 R24.htm IDEA: XBRL DOCUMENT
v3.21.2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Derivative Financial Instruments Used to Manage Currency Exchange Rate Risk and Interest Rate Risk |
| Notional Amount
| June 30, 2021 |  | December 31, 2020
| (in millions)
Foreign currency forward exchange contracts | $ | 1,498.8 |  |  | $ | 1,525.5 |
Cross currency swap contracts | 300.0 |  |  | 300.0 |
Schedule of Location and Fair Value Amounts of Derivative Instruments Reported in Consolidated Condensed Balance Sheets | The following table presents the location and fair value amounts of derivative instruments reported in the consolidated condensed balance sheets (in millions):
|  |  |  | Fair Value
Derivatives designated as hedging instruments |  | Balance Sheet Location |  | June 30, 2021 |  | December 31, 2020
Assets |  |  |  |  |  |
Foreign currency contracts |  | Other current assets |  | $ | 25.9 |  |  | $ | 7.3 |
Cross currency swap contracts |  | Other assets |  | $ | 6.2 |  |  | $ | 0.8 |
Liabilities |  |  |  |  |  |
Foreign currency contracts |  | Accounts payable and accrued liabilities |  | $ | 7.9 |  |  | $ | 39.3 |
Schedule of Effect of Master-Netting Agreements and Rights of Offset, Derivative Assets | The following table presents the effect of master-netting agreements and rights of offset on the consolidated condensed balance sheets (in millions):
|  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |  |
|  |  | Gross Amounts Offset in the Consolidated Balance Sheet |  |  |  |
|  |  | Net Amounts Presented in the Consolidated Balance Sheet |  |
June 30, 2021 | Gross Amounts |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 25.9 |  |  | $ | — |  |  | $ | 25.9 |  |  | $ | (5.0) |  |  | $ | — |  |  | $ | 20.9 |
Cross currency swap contracts | $ | 6.2 |  |  | $ | — |  |  | $ | 6.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 6.2 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 7.9 |  |  | $ | — |  |  | $ | 7.9 |  |  | $ | (5.0) |  |  | $ | — |  |  | $ | 2.9 |
Cross currency swap contracts | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 7.3 |  |  | $ | — |  |  | $ | 7.3 |  |  | $ | (6.1) |  |  | $ | — |  |  | $ | 1.2 |
Cross currency swap contracts | $ | 0.8 |  |  | $ | — |  |  | $ | 0.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.8 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 39.3 |  |  | $ | — |  |  | $ | 39.3 |  |  | $ | (6.1) |  |  | $ | — |  |  | $ | 33.2 |
Schedule of Effect of Master-Netting Agreements and Rights of Offset, Derivative Liabilities | The following table presents the effect of master-netting agreements and rights of offset on the consolidated condensed balance sheets (in millions):
|  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |  |
|  |  | Gross Amounts Offset in the Consolidated Balance Sheet |  |  |  |
|  |  | Net Amounts Presented in the Consolidated Balance Sheet |  |
June 30, 2021 | Gross Amounts |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 25.9 |  |  | $ | — |  |  | $ | 25.9 |  |  | $ | (5.0) |  |  | $ | — |  |  | $ | 20.9 |
Cross currency swap contracts | $ | 6.2 |  |  | $ | — |  |  | $ | 6.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 6.2 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 7.9 |  |  | $ | — |  |  | $ | 7.9 |  |  | $ | (5.0) |  |  | $ | — |  |  | $ | 2.9 |
Cross currency swap contracts | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 7.3 |  |  | $ | — |  |  | $ | 7.3 |  |  | $ | (6.1) |  |  | $ | — |  |  | $ | 1.2 |
Cross currency swap contracts | $ | 0.8 |  |  | $ | — |  |  | $ | 0.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.8 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 39.3 |  |  | $ | — |  |  | $ | 39.3 |  |  | $ | (6.1) |  |  | $ | — |  |  | $ | 33.2 |
Schedule of Effect of Derivative Instruments on Consolidated Condensed Statements of Operations and Consolidated Condensed Statements of Comprehensive Income | The following tables present the effect of derivative and non-derivative hedging instruments on the consolidated condensed statements of operations and consolidated condensed statements of comprehensive income (loss) (in millions):
|  | Amount of Gain or (Loss) Recognized in OCI on Derivative |  |  |  | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income
|  | Three Months Ended June 30, |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income |  | Three Months Ended June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Cash flow hedges |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  | $ | (3.9) |  |  | $ | (4.9) |  |  | Cost of sales |  | $ | (8.3) |  |  | $ | 7.7 |
|  |  |  |  |  | Selling, general, and administrative expenses |  | $ | (0.4) |  |  | $ | 0.9 |
|  | Amount of Gain or (Loss) Recognized in OCI on Derivative |  |  |  | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income
|  | Six Months Ended June 30, |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income |  | Six Months Ended June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Cash flow hedges |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  | $ | 24.3 |  |  | $ | 12.6 |  |  | Cost of sales |  | $ | (13.8) |  |  | $ | 13.8 |
|  |  |  |  |  | Selling, general, and administrative expenses |  | $ | (0.3) |  |  | $ | 1.7 |
|  | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) |  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
|  | Three Months Ended June 30, |  | Location of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) |  | Three Months Ended June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Net investment hedges |  |  |  |  |  |  |  |  |  |
Cross currency swap contracts |  | $ | 3.6 |  |  | $ | (9.0) |  |  | Interest expense (income), net |  | $ | 1.5 |  |  | $ | 1.6 |
|  | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) |  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
|  | Six Months Ended June 30, |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income |  | Six Months Ended June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Net investment hedges |  |  |  |  |  |  |  |  |  |
Cross currency swap contracts |  | $ | 5.4 |  |  | $ | 22.3 |  |  | Interest expense (income), net |  | $ | 3.1 |  |  | $ | 3.3 |
|  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative
|  |  |  | Three Months Ended June 30,
|  | Location of Gain or (Loss) Recognized in Income on Derivative |
|  | 2021 |  | 2020
Fair value hedges |  |  |  |  |  |
Foreign currency contracts |  | Other (income) expense, net |  | $ | 1.5 |  |  | $ | (1.4) |
|  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative
|  |  |  | Six Months Ended June 30,
|  | Location of Gain or (Loss) Recognized in Income on Derivative |
|  | 2021 |  | 2020
Fair value hedges |  |  |  |  |  |
Foreign currency contracts |  | Other (income) expense, net |  | $ | 7.8 |  |  | $ | 0.3 |
|  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative
|  |  |  | Three Months Ended June 30,
|  | Location of Gain or (Loss) Recognized in Income on Derivative |
|  | 2021 |  | 2020
Derivatives not designated as hedging instruments |  |  |  |  |  |
Foreign currency contracts |  | Other (income) expense, net |  | $ | (4.3) |  |  | $ | (6.9) |
|  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative
|  |  |  | Six Months Ended June 30,
|  | Location of Gain or (Loss) Recognized in Income on Derivative |
|  | 2021 |  | 2020
Derivatives not designated as hedging instruments |  |  |  |  |  |
Foreign currency contracts |  | Other (income) expense, net |  | $ | 10.9 |  |  | $ | 1.7 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables present the effect of fair value and cash flow hedge accounting on the consolidated condensed statements of operations (in millions):
| Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
| Three Months Ended June 30, 2021 |  | Six Months Ended June 30, 2021
| Cost of sales |  | Selling, general, and administrative expenses |  |  |  | Other (Income) Expense, net |  | Cost of sales |  | Selling, general, and administrative expenses |  |  |  | Other (Income) Expense, net
Total amounts of income and expense line items presented in the consolidated condensed statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | (334.3) |  |  | $ | (374.5) |  |  |  |  | $ | 4.4 |  |  | $ | (627.7) |  |  | $ | (705.3) |  |  |  |  | $ | 9.9 |
The effects of fair value and cash flow hedging: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedged items | $ | — |  |  | $ | — |  |  |  |  | $ | (0.7) |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (6.2) |
Derivatives designated as hedging instruments | $ | — |  |  | $ | — |  |  |  |  | $ | 0.7 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 6.2 |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | $ | — |  |  | $ | — |  |  |  |  | $ | 0.8 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 1.6 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated OCI into income | $ | (8.3) |  |  | $ | (0.4) |  |  |  |  | $ | — |  |  | $ | (13.8) |  |  | $ | (0.3) |  |  |  |  | $ | — |
| Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
| Three Months Ended June 30, 2020 |  | Six Months Ended June 30, 2020
| Cost of sales |  | Selling, general, and administrative expenses |  |  |  | Other Expense (Income), net |  | Cost of sales |  | Selling, general, and administrative expenses |  |  |  | Other Expense (Income), net
Total amounts of income and expense line items presented in the consolidated condensed statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | (238.2) |  |  | $ | (274.9) |  |  |  |  | $ | (0.3) |  |  | $ | (503.3) |  |  | $ | (582.7) |  |  |  |  | $ | 1.6 |
The effects of fair value and cash flow hedging: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedged items | $ | — |  |  | $ | — |  |  |  |  | $ | 2.2 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 1.5 |
Derivatives designated as hedging instruments | $ | — |  |  | $ | — |  |  |  |  | $ | (2.2) |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (1.5) |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | $ | — |  |  | $ | — |  |  |  |  | $ | 0.8 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 1.8 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated OCI into income | $ | 7.7 |  |  | $ | 0.9 |  |  |  |  | $ | — |  |  | $ | 13.8 |  |  | $ | 1.7 |  |  |  |  | $ | — |

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 Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfCashFlowHedgesIncludedInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the presentation of foreign exchange contracts on the statement of financial position, including the fair value amounts and location of such amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration