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Derivatives and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2016
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 Condensed Consolidated Balance Sheets.

 

 

 

Cash Flow

 

 

Net Investment Hedge

 

 

Non-Designated

 

 

Total

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

(In millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Derivative Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$

1.6

 

 

$

3.2

 

 

$

—

 

 

$

—

 

 

$

15.6

 

 

$

25.0

 

 

$

17.2

 

 

$

28.2

 

Interest rate and currency swaps

 

 

37.3

 

 

 

44.0

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

37.3

 

 

 

44.0

 

Total Derivative Assets (2)

 

$

38.9

 

 

$

47.2

 

 

$

—

 

 

$

—

 

 

$

15.6

 

 

$

25.0

 

 

$

54.5

 

 

$

72.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$

(4.6

)

 

$

(1.3

)

 

$

—

 

 

$

—

 

 

$

(22.3

)

 

$

(43.5

)

 

$

(26.9

)

 

$

(44.8

)

Cross-currency swaps

 

 

—

 

 

 

—

 

 

 

(32.4

)

 

 

(12.0

)

 

 

—

 

 

 

—

 

 

 

(32.4

)

 

 

(12.0

)

Total Derivative Liabilities(2)

 

$

(4.6

)

 

$

(1.3

)

 

$

(32.4

)

 

$

(12.0

)

 

$

(22.3

)

 

$

(43.5

)

 

$

(59.3

)

 

$

(56.8

)

Net Derivatives (1)

 

$

34.3

 

 

$

45.9

 

 

$

(32.4

)

 

$

(12.0

)

 

$

(6.7

)

 

$

(18.5

)

 

$

(4.8

)

 

$

15.4

 

 

(1)

Excludes €400 million of euro-denominated debt ($449 million equivalent at March 31, 2016), designated as a net investment hedge.

(2)

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

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

(In millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Gross position

 

$

25.0

 

 

$

36.2

 

 

$

(26.9

)

 

$

(44.8

)

 

$

29.5

 

 

$

36.0

 

 

$

(32.4

)

 

$

(12.0

)

Impact of master netting agreements

 

 

(0.2

)

 

 

(24.1

)

 

 

0.2

 

 

 

24.1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net amounts recognized on the

   Condensed Consolidated

   Balance Sheet

 

$

24.8

 

 

$

12.1

 

 

$

(26.7

)

 

$

(20.7

)

 

$

29.5

 

 

$

36.0

 

 

$

(32.4

)

 

$

(12.0

)

 
Effect of Derivative Instruments on Condensed Consolidated Statements of Operations

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

 

 

 

Amount of Gain (Loss) Recognized in

 

 

 

Earnings on Derivatives

 

 

 

Three Months Ended

 

 

 

March 31,

 

(In millions)

 

2016

 

 

2015

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

Cash Flow Hedges:

 

 

 

 

 

 

 

 

Foreign currency forward contracts(1)

 

$

1.7

 

 

$

0.8

 

Interest rate and currency swaps(2)

 

 

(10.9

)

 

 

15.0

 

Treasury locks(3)

 

 

0.1

 

 

 

0.1

 

Sub-total cash flow hedges

 

 

(9.1

)

 

 

15.9

 

Fair Value Hedges:

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

0.1

 

 

 

0.1

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

(10.6

)

 

 

37.9

 

Total

 

$

(19.6

)

 

$

53.9

 

  

(1)

Amounts recognized on the foreign currency forward contracts were included in cost of sales during the three months ended March 31, 2016 and other income, net in the three months ended March 31, 2015.

(2)

Amounts recognized on the interest rate and currency swaps for the three months ended March 31, 2016 and 2015, included a $10 million loss and $17 million gain, respectively, which is included in other income, net and interest expense of $1 million and $2 million related to the hedge of the interest payments.

(3)

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