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Derivatives (Tables)
 9 Months Ended
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.