XML 43 R33.htm IDEA: XBRL DOCUMENT
v3.20.2

Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Accumulated Other Comprehensive Loss Related to Derivatives | The following tables summarize the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and net income during the three and six months ended June 30, 2020 and 2019 (in millions):
|  |  | Recognized in Net Income |  |
Three Months Ended June 30, | Gain (Loss) Recognized in Accumulated Other Comprehensive Loss |  | Classification of Gain (Loss) |  | Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income |  | Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)
2020 |  |  |  |  |  |  |
Foreign currency contracts | $ | (1.3 | ) |  | Cost of goods sold |  | $ | 3.1 |  |  | $ | 1,574.1 |
2019 |  |  |  |  |  |  |
Foreign currency contracts | $ | 4.3 |  |  | Cost of goods sold |  | $ | (0.5 | ) |  | $ | 1,858.7 |
|  |  | Recognized in Net Income |  |
Six Months Ended June 30, | Gain (Loss) Recognized in Accumulated Other Comprehensive Loss |  | Classification of Gain (Loss) |  | Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income |  | Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)
2020 |  |  |  |  |  |  |
Foreign currency contracts(1) | $ | 8.2 |  |  | Cost of goods sold |  | $ | 3.2 |  |  | $ | 3,051.9 |
2019 |  |  |  |  |  |  |
Foreign currency contracts | $ | (0.4 | ) |  | Cost of goods sold |  | $ | (1.1 | ) |  | $ | 3,397.8 |
(1) The outstanding contracts as of June 30, 2020 range in maturity through December 2020. The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the six months ended June 30, 2020 (in millions):
|  | Before-Tax Amount |  | Income Tax |  | After-Tax Amount
Accumulated derivative net losses as of December 31, 2019 |  | $ | (1.5 | ) |  | $ | (0.2 | ) |  | $ | (1.3 | )
Net changes in fair value of derivatives |  | 9.2 |  |  | 1.0 |  |  | 8.2 |
Net gains reclassified from accumulated other comprehensive loss into income |  | (3.2 | ) |  | — |  |  | (3.2 | )
Accumulated derivative net gains as of June 30, 2020 |  | $ | 4.5 |  |  | $ | 0.8 |  |  | $ | 3.7 |
Schedule of Derivative Instruments | The following table summarizes the notional values of the instrument designated as a net investment hedge (in millions):
| Notional Amount as of
| June 30, 2020 |  | December 31, 2019
Cross currency swap contract | $ | 300.0 |  |  | $ | 300.0 |
The following table summarizes the after-tax impact of changes in the fair value of the instrument designated as a net investment hedge during the three and six months ended June 30, 2020 and 2019 (in millions):
| Gain (Loss) Recognized in Accumulated Other Comprehensive Loss for the Three Months Ended |  | Gain Recognized in Accumulated Other Comprehensive Loss for the Six Months Ended
| June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
Cross currency swap contract | $ | (5.8 | ) |  | $ | (2.1 | ) |  | $ | 1.5 |  |  | $ | 4.8 |
Foreign currency denominated debt | 1.1 |  |  | 0.3 |  |  | 1.7 |  |  | 2.0 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table summarizes the impact that changes in the fair value of derivatives not designated as hedging instruments had on net income (in millions):
|  |  | Loss Recognized in Net Income for the Three Months Ended |  | Gain Recognized in Net Income for the Six Months Ended
| Classification of Gain (Loss) |  | June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
Foreign currency contracts | Other expense, net |  | $ | (9.0 | ) |  | $ | (3.1 | ) |  | $ | 23.1 |  |  | $ | 5.7 |
Fair Value of Derivative Instruments | The table below sets forth the fair value of derivative instruments as of June 30, 2020 (in millions):
| Asset Derivatives as of June 30, 2020 |  | Liability Derivatives as of June 30, 2020
| Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Derivative instruments designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency contracts | Other current assets |  | $ | 4.6 |  |  | Other current liabilities |  | $ | 0.1 |
Cross currency swap contract | Other noncurrent assets |  | 28.4 |  |  | Other noncurrent liabilities |  | — |
Derivative instruments not designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency contracts | Other current assets |  | 23.7 |  |  | Other current liabilities |  | 17.0 |
Total derivative instruments |  |  | $ | 56.7 |  |  |  |  | $ | 17.1 |
The table below sets forth the fair value of derivative instruments as of December 31, 2019 (in millions):
| Asset Derivatives as of December 31, 2019 |  | Liability Derivatives as of December 31, 2019
| Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Derivative instruments designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency contracts | Other current assets |  | $ | 0.6 |  |  | Other current liabilities |  | $ | 1.9 |
Cross currency swap contract | Other noncurrent assets |  | 27.0 |  |  | Other noncurrent liabilities |  | — |
Derivative instruments not designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency contracts | Other current assets |  | 11.7 |  |  | Other current liabilities |  | 13.1 |
Total derivative instruments |  |  | $ | 39.3 |  |  |  |  | $ | 15.0 |
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are summarized below (in millions):
| As of June 30, 2020
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Derivative assets | $ | — |  |  | $ | 56.7 |  |  | $ | — |  |  | $ | 56.7 |
Derivative liabilities | — |  |  | 17.1 |  |  | — |  |  | 17.1 |
| As of December 31, 2019
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Derivative assets | $ | — |  |  | $ | 39.3 |  |  | $ | — |  |  | $ | 39.3 |
Derivative liabilities | — |  |  | 15.0 |  |  | — |  |  | 15.0 |

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 Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfCashFlowHedgesIncludedInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=121590274&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5579240-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CC -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL109998890-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration