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Derivatives (Tables) | 9 Months Ended
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Sep. 30, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Summary of Primary Net Hedging Positions and Corresponding Fair Values | The following tables provide a summary of the primary net hedging positions and corresponding fair values held as of September 30, 2021 and December 31, 2020:
|  | September 30, 2021 |
Currency Hedged (Buy/Sell) |  | Gross Notional Value |  |  | Fair Value(1) |
U.S. dollar/Japanese yen |  | $ | 51.5 |  |  | $ | 0.9 |
U.S. dollar/South Korean won |  |  | 81.2 |  |  |  | 1.4 |
U.S. dollar/euro |  |  | 14.4 |  |  |  | 0.1 |
U.S. dollar/U.K. pound sterling |  |  | 6.9 |  |  |  | — |
U.S. dollar/Taiwan dollar |  |  | 53.6 |  |  |  | (0.1 | )
Total |  | $ | 207.6 |  |  | $ | 2.3 |
|  | December 31, 2020 |
Currency Hedged (Buy/Sell) |  | Gross Notional Value |  |  | Fair Value(1) |
U.S. dollar/Japanese yen |  | $ | 61.5 |  |  | $ | (1.1 | )
U.S. dollar/South Korean won |  |  | 62.2 |  |  |  | (3.1 | )
U.S. dollar/euro |  |  | 13.1 |  |  |  | (0.6 | )
U.S. dollar/U.K. pound sterling |  |  | 6.1 |  |  |  | (0.3 | )
U.S. dollar/Taiwan dollar |  |  | 33.3 |  |  |  | (1.4 | )
Total |  | $ | 176.2 |  |  | $ | (6.5 | )
| (1) | Represents receivable (payable) amount included in the condensed consolidated balance sheet.
Summary of Various Interest Rate Hedges | The table below summarizes the various interest rate hedges entered into by the Company:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | September 30, 2021 |  |  | September 30, 2021 |  |  | December 31, 2020 |
Swap |  | Trade Date |  | Effective Date |  | Maturity |  | Fixed Rate |  |  | Notional Amount at Effective Date |  |  | Notional Amount |  |  | Fair Value Asset (Liability) |  |  | Fair Value Asset (Liability) |
1 |  | April 3, 2019 |  | April 5, 2019 |  | March 31, 2023 |  |  | 2.309 | % |  | $ | 300.0 |  |  | $ | 300.0 |  |  |  | (7.5 | ) |  |  | (12.4 | )
2 |  | October 29, 2020 |  | October 26, 2021 |  | February 28, 2025 |  |  | 0.485 | % |  | $ | 200.0 |  |  | $ | — |  |  |  | 2.3 |  |  |  | (0.7 | )
3 |  | October 29, 2020 |  | March 31, 2022 |  | February 28, 2025 |  |  | 0.623 | % |  | $ | 100.0 |  |  | $ | — |  |  |  | 1.4 |  |  |  | (0.9 | )
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | $ | (3.8 | ) |  | $ | (14.0 | )
Summary of Fair Value Amounts of Company's Derivative Instruments | The following table provides a summary of the fair value amounts of the Company’s derivative instruments:
Derivatives Designated as Hedging Instruments |  | September 30, 2021 |  |  | December 31, 2020 |
Derivative assets: |  |  |  |  |  |  |  |
Foreign exchange forward contracts(1) |  | $ | 3.0 |  |  | $ | — |
Interest rate hedges(2) |  |  | 3.7 |  |  |  | — |
Derivative liabilities: |  |  |  |  |  |  |  |
Foreign exchange forward contracts(1) |  |  | (0.7 | ) |  |  | (6.5 | )
Interest rate hedge(2) |  |  | (7.5 | ) |  |  | (14.0 | )
Total net derivative liability designated as hedging instruments |  | $ | (1.5 | ) |  | $ | (20.5 | )
| (1) | The derivative asset of $3.0 and derivative liability of $0.7 related to the foreign exchange forward contracts are classified in other current assets and other current liabilities in the condensed consolidated balance sheet as of September 30, 2021. The derivative liability of $6.5 related to the foreign exchange forward contracts is classified in other current liabilities in the condensed consolidated balance sheet as of December 31, 2020. These foreign exchange forward contracts are subject to a master netting agreement with one financial institution. However, the Company has elected to record these contracts on a gross basis in the balance sheet.
| (2) | The interest rate hedge asset of $3.7 is classified in other non-current assets in the condensed consolidated balance sheet as of September 30, 2021. The interest rate hedge liabilities of $7.5 and $14.0 are classified in other non-current liabilities in the condensed consolidated balance sheet as of September 30, 2021 and December 31, 2020, respectively.
Summary of Gain (Losses) on Derivatives Designated as Cash Flow Hedging Instruments | The following table provides a summary of the gains (losses) on derivatives designated as cash flow hedging instruments:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Forward exchange forward contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net (loss) gain recognized in accumulated OCI(1) |  | $ | 3.0 |  |  | $ | (0.6 | ) |  | $ | 13.9 |  |  | $ | (7.7 | )
Net (loss) gain reclassified from accumulated OCI into income(2) |  | $ | (0.2 | ) |  | $ | 0.4 |  |  | $ | (2.1 | ) |  | $ | 2.2 |
| (1) | Net change in the fair value of the effective portion classified in accumulated OCI.
| (2) | Effective portion classified in cost of products for the three and nine months ended September 30, 2021 and 2020. The tax effect of the gains or losses reclassified from accumulated OCI into income is immaterial.
Summary of (Loss) Gain on Derivatives Not Designated as Hedging Instruments | The following table provides a summary of the losses on derivatives not designated as hedging instruments:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Foreign exchange forward contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss recognized in income(1) |  | $ | (2.2 | ) |  | $ | (0.6 | ) |  | $ | (9.0 | ) |  | $ | (0.6 | )
| (1) | The Company enters into foreign exchange forward contracts to hedge against changes in the balance sheet for certain subsidiaries to mitigate the risk associated with certain foreign currency transactions in the ordinary course of business. In conjunction with the acquisition of Photon Control, the Company entered into a foreign currency contract to hedge the Canadian dollar purchase price. These derivatives are not designated as hedging instruments and gains or losses from these derivatives are recorded in other (expense) income in the periods in which they occur.

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