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Derivatives and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Instruments

The following table details the fair value of our derivative instruments included on our Consolidated Balance Sheets.

 

 

 

Cash Flow Hedge

 

 

Net Investment Hedge

 

 

Non-Designated as Hedging

Instruments

 

 

Total

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(In millions)

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Derivative Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward

   contracts

 

$

3.2

 

 

$

4.3

 

 

$

—

 

 

$

—

 

 

$

25.0

 

 

$

41.3

 

 

$

28.2

 

 

$

45.6

 

Interest rate and currency

   swaps

 

 

44.0

 

 

 

17.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

44.0

 

 

 

17.8

 

Total Derivative Assets (2)

 

$

47.2

 

 

$

22.1

 

 

$

—

 

 

$

—

 

 

$

25.0

 

 

$

41.3

 

 

$

72.2

 

 

$

63.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward

   contracts

 

$

(1.3

)

 

$

(0.4

)

 

$

—

 

 

$

—

 

 

$

(43.5

)

 

$

(67.6

)

 

$

(44.8

)

 

$

(68.0

)

Cross-currency swaps

 

 

—

 

 

 

—

 

 

 

(12.0

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12.0

)

 

 

—

 

Total Derivative Liabilities(2)

 

$

(1.3

)

 

$

(0.4

)

 

$

(12.0

)

 

$

—

 

 

$

(43.5

)

 

$

(67.6

)

 

$

(56.8

)

 

$

(68.0

)

Net Derivatives (1)

 

$

45.9

 

 

$

21.7

 

 

$

(12.0

)

 

$

—

 

 

$

(18.5

)

 

$

(26.3

)

 

$

15.4

 

 

$

(4.6

)

 

 

(1)

Excludes $437.3 million of euro-denominated debt designated as a net investment hedge at December 31, 2015.

(2)

The Company’s derivative transactions are typically governed by master agreements that contain netting and set-off clauses.  The netting clauses often stipulate that matching counterparties may offset asset and liability positions of the same nature and maturing at the same time, with only the net payment due required to be delivered.  The set-off provisions, in the event of certain default or termination events, can allow the non-defaulting party rights of set-off for net obligations owed by the defaulting party. The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification:

 

 

 

Other Current Assets

 

 

Other Current Liabilities

 

 

Other Non-current Assets

 

 

Other Non-current Liabilities

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

(In millions)

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Gross position

 

$

36.2

 

 

$

34.3

 

 

$

(44.8

)

 

$

(48.8

)

 

$

36.0

 

 

$

27.1

 

 

$

(12.0

)

 

$

(17.2

)

Impact of master netting

   agreements

 

 

(24.1

)

 

 

(25.2

)

 

 

24.1

 

 

 

25.2

 

 

 

—

 

 

 

(9.3

)

 

 

—

 

 

 

9.3

 

Net amounts recognized

   on the Consolidated

   Balance Sheet

 

$

12.1

 

 

$

9.1

 

 

$

(20.7

)

 

$

(23.6

)

 

$

36.0

 

 

$

17.8

 

 

$

(12.0

)

 

$

(7.9

)

 
Effect of Derivative Instruments on Condensed Consolidated Statements of Operations

The following table details the effect of our derivative instruments on our Consolidated Statements of Operations.

 

 

 

Amount of Gain (Loss) Recognized in

 

 

 

Earnings on Derivatives

 

 

 

Year Ended December 31,

 

(In millions)

 

2015

 

 

2014

 

 

2013

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow Hedges:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(1)

 

$

9.6

 

 

$

1.9

 

 

$

2.7

 

Interest rate and currency swaps(2)

 

 

36.9

 

 

 

13.5

 

 

 

—

 

Treasury locks(3)

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

Sub-total cash flow hedges

 

 

46.6

 

 

 

15.5

 

 

 

2.8

 

Fair Value Hedges:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

0.4

 

 

 

1.8

 

 

 

—

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

32.0

 

 

 

0.4

 

 

 

(8.5

)

Total

 

$

79.0

 

 

$

17.7

 

 

$

(5.7

)

 

 

 

(1)

Amounts recognized on the foreign currency forward contracts were included in other income (expense), net.

(2)

As of December 31, 2015, amounts recognized on the interest rate and currency swaps included a $42.9 million gain which offset a loss on the remeasurement of the hedged debt, which is included in other income (expense), net and interest expense of $6.0 million related to the hedge of the interest payments. As of December 31, 2014, amounts recognized on the interest rate and currency swaps included a $16.5 million gain which offset a loss on remeasurement of the hedged debt, which is included in other income (expense), net and interest expense of $3.0 million related to the hedge of interest payments.

(3)

Amounts recognized on the treasury locks were included in interest expense.