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Derivative Instruments and Hedging Activities
 3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
Historically, we have entered into forward contracts to hedge our exposures associated with certain foreign currencies. At the maturity of the forward contracts, we may enter into new forward contracts to hedge movements in the underlying currencies. At the time of settlement, we either pay or receive the net settlement amount from the forward contract and recognize this amount in Other (income) expense, net in the Consolidated Statements of Operations as a realized foreign exchange gain or loss. At the end of each month, we mark the outstanding forward contracts to market and record an unrealized foreign exchange gain or loss for the mark-to-market valuation. We have not designated any of the forward contracts we have entered into as hedges. As of December 31, 2017, we had outstanding forward contracts to (i) purchase $138,823 United States dollars and sell 176,000 Canadian dollars, (ii) purchase 135,000 Euros and sell $160,757 United States dollars and (iii) purchase $114,390 United States dollars and sell 96,150 Euros to hedge our foreign exchange exposures. As of March 31, 2018, we had outstanding forward contracts to purchase 133,000 Euros and sell $165,799 United States dollars to hedge our foreign exchange exposures. During the three months ended March 31, 2017, there were no cash receipts or payments included in cash from operating activities from continuing operations related to settlements associated with foreign currency forward contracts. During the three months ended March 31, 2018, cash receipts included in cash from operating activities from continuing operations related to settlements associated with foreign currency forward contracts was $6,343.
Our policy is to record the fair value of each derivative instrument on a gross basis. The following table provides the fair value of our derivative instruments not designated as hedging instruments as of December 31, 2017 and March 31, 2018:
Derivatives Not Designated as Hedging Instruments
 
Balance Sheet Location
 
December 31, 2017
 
March 31, 2018
Derivative assets
 
Prepaid expenses and other
 
$
1,579

 
$
—

Derivative liabilities
 
Accrued expenses
 
2,329

 
1,102


(Gains) losses for our derivative instruments not recognized as hedging instruments for the three months ended March 31, 2017 and 2018 are as follows:
 
 
 
 
Three Months Ended
March 31,
Derivatives Not Designated as Hedging Instruments
 
Location of Loss (Gain) Recognized in Income on Derivative
 
2017
 
2018
Foreign exchange contracts
 
Other (income) expense, net
 
$
—

 
$
(5,991
)

We have designated a portion of our (i) Euro denominated borrowings by IMI under our Former Revolving Credit Facility and (ii) Euro Notes (each as defined in Note 5) as a hedge of net investment of certain of our Euro denominated subsidiaries. For the three months ended March 31, 2017, we designated, on average, 49,600 Euros of our Euro denominated borrowings by IMI under our Former Revolving Credit Facility as a hedge of net investment of certain of our Euro denominated subsidiaries. For the three months ended March 31, 2018, we designated, on average, 164,244 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded the following foreign exchange (losses) gains related to the change in fair value of such debt due to currency translation adjustments, which is a component of accumulated other comprehensive items, net:
 
 
Three Months Ended
March 31,
 
 
2017
 
2018
Foreign exchange (losses) gains
 
$
(1,072
)
 
$
(5,635
)

As of March 31, 2018, cumulative net losses of $2,447, net of tax, are recorded in accumulated other comprehensive items, net associated with this net investment hedge.
In March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. As of March 31, 2018, we have $350,000 in notional value of interest rate swap agreements outstanding, which expire in March 2022. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rate payments (at the fixed rate interest specified in the interest rate swap agreements). We have designated these interest rate swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The fair value of the interest rate swaps are estimated using industry standard valuation models using market-based observable inputs, including interest rate curves (Level 2, as described in Note 2.i.). At March 31, 2018, we had a derivative liability of $185, which was recorded as a component of Other Long-Term Liabilities on our Condensed Consolidated Balance Sheet, which represents the fair value of our interest rate swap agreements.

We have recorded the change in fair value of the interest rate swap agreements to accumulated other comprehensive income. At March 31, 2018, we have recorded an unrealized loss of $185 within accumulated other comprehensive items, net associated with these agreements.