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Financial Instruments
 12 Months Ended
Dec. 31, 2016
Financial Instruments [Abstract]  
Financial Instruments Disclosure
FINANCIAL INSTRUMENTS
The Company has limited involvement with derivative financial instruments and does not use them for trading purposes. The Company enters into certain interest rate swap agreements in order to manage its exposure to changes in interest rates. At December 31, 2016, the interest payments associated with 71% of the Company's debt are fixed obligations. The amount of the Company's fixed obligation interest payments may change based upon the expiration dates of its interest rate swap agreement and the level and composition of its debt. The Company also enters into certain foreign currency forward contracts to limit the Company's exposure to currency fluctuations on the respective hedged items. As also mentioned in Note 9, the Company has designated its euro-denominated debt as a hedge of a portion of its net investment in a euro denominated foreign subsidiary. For additional disclosures on the fair value of financial instruments, see Note 6.
Cash Flow Hedges
The Company previously entered into foreign currency forward contracts, designated as cash flow hedges, to hedge certain forecasted intercompany sales denominated in euro with its Swiss-based business. In January 2015, prior to the Swiss National Bank's abandonment of its previously established exchange rate of 1.20 Swiss franc per euro, the Company increased the notional amount of the cash flow hedges to a total notional value and average forward rate of Euro 86 million and 1.21 for contracts that matured in 2015 and Euro 67 million and 1.19 for contracts that matured in 2016. As of December 31, 2016 there were no foreign currency forward contracts outstanding. The notional amount of foreign currency forward contracts outstanding was $73 million (Euro 67 million) at December 31, 2015. The amount recognized in other comprehensive income (loss) during 2016 and 2015 was a loss of $0.3 million and a gain of $19.0 million, respectively.
The Company has an interest rate swap agreement designated as a cash flow hedge. The agreement is a swap which has the effect of changing the floating rate LIBOR-based interest payments associated with $50 million in forecasted borrowings under the Company's credit agreement to a fixed obligation of 2.52% beginning in October 2015 and matures in October 2020.
In March 2015, the Company entered into a forward-starting interest rate swap agreement. The
agreement will change the floating rate LIBOR-based interest payments associated with $100 million in
forecasted borrowings under the Company's credit agreement to a fixed obligation of 2.25% beginning in
February 2017 and matures in February 2022.
The Company's cash flow hedges are recorded gross at fair value in the consolidated balance sheet at December 31, 2016 and 2015, and disclosed in Note 6 to the consolidated financial statements. Amounts reclassified into other comprehensive income and the effective portions of the cash flow hedges are further disclosed in Note 10 to the consolidated financial statements. A derivative loss of $1.1 million based upon interest rates at December 31, 2016 is expected to be reclassified from other comprehensive income (loss) to earnings in the next 12 months. Through December 31, 2016, no hedge ineffectiveness has occurred in relation to these cash flow hedges.

Other Derivatives

The Company enters into foreign currency forward contracts in order to economically hedge short-term trade and non-trade intercompany balances largely denominated in Swiss franc, other major European currencies, and the Chinese Renminbi with its foreign businesses. In accordance with U.S. GAAP, these contracts are considered “derivatives not designated as hedging instruments.” Gains or losses on these instruments are reported in current earnings. The foreign currency forward contracts are recorded at fair value in the consolidated balance sheet at December 31, 2016 and 2015, as disclosed in Note 6 to the consolidated financial statements. The Company recognized in other charges (income), a net loss of $3.3 million and $5.3 million during the years ended December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, these contracts had a notional value of $353.0 million and $318.7 million, respectively.
The Company may be exposed to credit losses in the event of nonperformance by the counterparties to its derivative financial instrument contracts. Counterparties are established banks and financial institutions with high credit ratings. The Company believes that such counterparties will be able to fully satisfy their obligations under these contracts.