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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
Currency Forward Contracts and Currency Forward Embedded Derivatives
We manufacture and sell our products in a number of countries and, as a result, are exposed to movements in foreign currency exchange rates. Our objective is to preserve the economic value of non-functional currency-denominated cash flows and to minimize the impact of changes as a result of currency fluctuations. Our principal currency exposures relate to the Euro, South African Rand, CNY and GBP.
From time to time, we enter into forward contracts to manage the exposure on contracts with forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities denominated in currencies other than the functional currency of certain subsidiaries ("FX forward contracts"). In addition, some of our contracts contain currency forward embedded derivatives ("FX embedded derivatives"), because the currency of exchange is not "clearly and closely" related to the functional currency of either party to the transaction. Certain of our FX forward contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives' fair value are not included in current earnings, but are included in accumulated other comprehensive income ("AOCI"). These changes in fair value are reclassified into earnings as a component of revenues or cost of products sold, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives' fair value is recorded as a component of "Other income (expense), net" in the period in which the transaction is no longer considered probable of occurring. To the extent a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period in which it occurs.
We had FX forward contracts with an aggregate notional amount of $139.8 and $212.5 outstanding as of December 31, 2015 and 2014, respectively. Of our outstanding contracts as of December 31, 2015, $136.8 and $3.0 are scheduled to mature in 2016 and 2017, respectively. We also had FX embedded derivatives with an aggregate notional amount of $120.8 and $192.6 at December 31, 2015 and 2014, respectively, with scheduled maturities of $88.4, $28.0 and $4.4 in 2016, 2017 and 2018, respectively. The unrealized losses, net of taxes, recorded in AOCI related to FX forward contracts were $0.6 and $0.3 as of December 31, 2015 and 2014, respectively. We anticipate reclassifying the unrealized losses as of December 31, 2015 to income over the next 12 months. The net loss recorded in "Other income (expense), net" related to FX forward contracts and embedded derivatives totaled $1.6 in 2015, $2.6 in 2014 and $0.3 in 2013.
Commodity Contracts
From time to time, we enter into commodity contracts to manage the exposure on forecasted purchases of commodity raw materials. The outstanding notional amount of commodity contracts was 4.2 pounds of copper at both December 31, 2015 and 2014. We designate and account for these contracts as cash flow hedges and, to the extent these commodity contracts are effective in offsetting the variability of the forecasted purchases, the change in fair value is included in AOCI. We reclassify AOCI associated with our commodity contracts to cost of products sold when the forecasted transaction impacts earnings. As of December 31, 2015 and 2014, the fair value of these contracts was $1.7 (current liabilities) and $1.4 (current liabilities), respectively. The unrealized loss, net of taxes, recorded in AOCI was $1.2 and $1.0 as of December 31, 2015 and 2014, respectively. We anticipate reclassifying the unrealized loss as of December 31, 2015 to income over the next 12 months.
The following summarizes the gross and net fair values of our FX forward and commodity contracts by counterparty at December 31, 2015 and 2014:
 
December 31, 2015
 
December 31, 2014
 
Gross Assets
 
Gross Liabilities
 
Net
Assets /
Liabilities
 
Gross Assets
 
Gross Liabilities
 
Net
Assets /
Liabilities
FX Forward Contracts:
 
 
 
 
 
 
 
 
 
 
 
Counterparty A
$
—

 
$
—

 
$
—

 
$
—

 
$
(0.1
)
 
$
(0.1
)
Counterparty B
—

 
(0.6
)
 
(0.6
)
 
0.3

 
(3.5
)
 
(3.2
)
Counterparty C
0.1

 
(0.5
)
 
(0.4
)
 
0.3

 
(0.7
)
 
(0.4
)
Aggregate of other counterparties
—

 
(0.4
)
 
(0.4
)
 
0.1

 
(0.7
)
 
(0.6
)
Totals(1)
$
0.1

 
$
(1.5
)
 
$
(1.4
)
 
$
0.7

 
$
(5.0
)
 
$
(4.3
)
Commodity Contracts:
 
 
 
 
 
 
 
 
 
 
 
 Counterparty A(2)
$
—

 
$
(1.7
)
 
$
(1.7
)
 
$
—

 
$
(1.4
)
 
$
(1.4
)
___________________________________________________________________

(1) 
We enter into arrangements designed to provide the right of setoff in the event of counterparty default or insolvency, and have elected to offset the fair values of our qualifying financial instruments in our consolidated balance sheets. Amounts presented in our consolidated balance sheets were as follows:
 
December 31, 2015
 
December 31, 2014
Designated as hedging instruments:
 
 
 
Accrued expenses
(0.4
)
 
(0.1
)
Other long-term liabilities
(0.2
)
 
(0.1
)
 
(0.6
)
 
(0.2
)
Not designated as hedging instruments:
 
 
 
Accrued expenses
(0.8
)
 
(4.1
)
 
(0.8
)
 
(4.1
)
Net fair value of FX forward contracts
$
(1.4
)
 
$
(4.3
)
(2) 
Related contracts are designated as hedging instruments. Net amounts at December 31, 2015 and 2014 were recorded in "Accrued expenses."
The following summarizes the fair value of our FX embedded derivative instruments, which are not designated as hedging instruments, and the related balance sheet classification as of December 31, 2015 and 2014:
Balance Sheet Classification
December 31, 2015
 
December 31, 2014
Other current assets
$
8.0

 
$
4.1

Other assets
3.1

 
1.2

Accrued expenses
(3.7
)
 
(3.8
)
Other long-term liabilities
(1.1
)
 
(0.6
)
 
$
6.3

 
$
0.9


The following summarizes the pre-tax gain (loss) recognized in AOCI resulting from derivative financial instruments designated as cash flow hedging relationships for the years ended December 31, 2015, 2014 and 2013:
 
Year ended December 31,
 
2015
 
2014
 
2013
FX forward contracts
$
0.4

 
$
0.4

 
$
(0.1
)
Commodity contracts
(3.2
)
 
(2.5
)
 
(1.2
)
 
$
(2.8
)
 
$
(2.1
)
 
$
(1.3
)

The following summarizes the pre-tax gain (loss) related to derivative financial instruments designated as cash flow hedging relationships reclassified from AOCI to income through "Revenues" for FX forward contracts and "Cost of products sold" for commodity contracts for the years ended December 31, 2015, 2014 and 2013:
 
Year ended December 31,
 
2015
 
2014
 
2013
FX forward contracts
$
0.6

 
$
(0.8
)
 
$
(4.0
)
Commodity contracts
(2.8
)
 
(0.7
)
 
(1.3
)
 
$
(2.2
)
 
$
(1.5
)
 
$
(5.3
)

The following summarizes the gain (loss) recognized in "Other income (expense), net" for the years ended December 31, 2015, 2014 and 2013 related to derivative financial instruments not designated as cash flow hedging relationships:
 
Year ended December 31,
 
2015
 
2014
 
2013
FX forward contracts
$
(6.5
)
 
$
(5.4
)
 
$
(1.3
)
FX embedded derivatives
4.9

 
2.8

 
1.0

 
$
(1.6
)
 
$
(2.6
)
 
$
(0.3
)

Concentrations of Credit Risk
Financial instruments that potentially subject us to significant concentrations of credit risk consist of cash and equivalents, trade accounts receivable, and foreign currency forward and commodity contracts. These financial instruments, other than trade accounts receivable, are placed with high-quality financial institutions throughout the world. We periodically evaluate the credit standing of these financial institutions.
We maintain cash levels in bank accounts that, at times, may exceed federally-insured limits. We have not experienced, and believe we are not exposed to significant risk of, loss in these accounts.
We have credit loss exposure in the event of nonperformance by counterparties to the above financial instruments, but have no other off-balance-sheet credit risk of accounting loss. We anticipate, however, that counterparties will be able to fully satisfy their obligations under the contracts. We do not obtain collateral or other security to support financial instruments subject to credit risk, but we do monitor the credit standing of counterparties.
Concentrations of credit risk arising from trade accounts receivable are due to selling to customers in a particular industry. We mitigate our credit risks by performing ongoing credit evaluations of our customers' financial conditions and obtaining collateral, advance payments, or other security when appropriate. No one customer, or group of customers that to our knowledge are under common control, accounted for more than 10% of our revenues for any period presented.