XML 37 R25.htm IDEA: XBRL DOCUMENT
v3.19.2

DERIVATIVES | 6 Months Ended
--- | ---
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | DERIVATIVES The Company uses derivative instruments to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable. Hedge ineffectiveness was immaterial in the six months ended June 30, 2019 and 2018. The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with any individual counterparty was considered significant at June 30, 2019. The Company does not expect any counterparties to fail to meet their obligations. Cash Flow Hedges Certain foreign currency forward contracts were qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $66,873 at June 30, 2019 and $45,909 at December 31, 2018. Fair Value Hedges Certain interest rate swap agreements were qualified and designated as fair value hedges. At June 30, 2019, the Company had interest rate swap agreements outstanding that effectively convert notional amounts of $125,000 of debt from a fixed interest rate to a variable interest rate based on three-month LIBOR plus a spread of between 0.5% and 1.8%. The variable rates reset every three months, at which time payment or receipt of interest will be settled. Net Investment Hedges From time to time, the Company executes foreign currency forward contracts that qualify and are designated as net investment hedges. No such contracts were outstanding at June 30, 2019 and December 31, 2018. Derivatives Not Designated as Hedging Instruments The Company has certain foreign exchange forward contracts that are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $335,048 and $328,534 at June 30, 2019 and December 31, 2018, respectively. Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets follow:
|  | June 30, 2019 |  | December 31, 2018
Derivatives by hedge designation |  | Other Current Assets |  | Other Current Liabilities |  | Other Assets |  | Other Liabilities |  | Other Current Assets |  | Other Current Liabilities |  | Other Assets |  | Other Liabilities
Designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | $ | 676 |  |  | $ | 514 |  |  | $ | — |  |  | $ | — |  |  | $ | 647 |  |  | $ | 404 |  |  | $ | — |  |  | $ | — |
Interest rate swap agreements |  | — |  |  | — |  |  | 2,682 |  |  | 1,584 |  |  | — |  |  | — |  |  | 302 |  |  | 7,033 |
Not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | 5,471 |  |  | 558 |  |  | — |  |  | — |  |  | 6,375 |  |  | 829 |  |  | — |  |  | — |
Total derivatives |  | $ | 6,147 |  |  | $ | 1,072 |  |  | $ | 2,682 |  |  | $ | 1,584 |  |  | $ | 7,022 |  |  | $ | 1,233 |  |  | $ | 302 |  |  | $ | 7,033 |
The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following:
|  |  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
Derivatives by hedge designation |  | Classification of gain (loss) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Not designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Selling, general & administrative expenses |  | $ | 1,010 |  |  | $ | (4,406 | ) |  | $ | 6,417 |  |  | $ | 4,249 |
The effects of designated hedges on AOCI and the Company’s Consolidated Statements of Income consisted of the following:
Total gain (loss) recognized in AOCI, net of tax |  | June 30, 2019 |  | December 31, 2018
Foreign exchange contracts |  | $ | 201 |  |  | $ | 173 |
Net investment contracts |  | 1,521 |  |  | 1,521 |
The Company expects a gain of $201 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized.
|  |  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
Derivative type |  | Gain (loss) recognized in the Consolidated Statements of Income: |  | 2019 |  | 2018 |  | 2019 |  | 2018
Foreign exchange contracts |  | Sales |  | $ | 387 |  |  | $ | (37 | ) |  | $ | 775 |  |  | $ | 106 |
|  | Cost of goods sold |  | 152 |  |  | 20 |  |  | 249 |  |  | 53 |

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