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Financial Instruments | 9 Months Ended
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Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Instruments | Financial Instruments The Company operates globally with manufacturing and sales facilities around the world. Due to the Company’s global operations, the Company engages in activities involving both financial and market risks. The Company utilizes normal operating and financing activities, along with derivative financial instruments, to minimize these risks. See Note 14 in the Notes to Consolidated Financial Statements in the 2016 Form 10-K for further details regarding the Company's financial instruments and hedging policies. Foreign Currency Derivatives. Forward exchange contracts outstanding at September 30, 2017, December 31, 2016 and October 1, 2016 had notional contract values of $294.7 million, $263.7 million and $248.9 million, respectively. Option contracts outstanding at September 30, 2017, December 31, 2016 and October 1, 2016 had notional contract values of $18.0 million, $30.4 million and $39.3 million, respectively. The forward and option contracts outstanding at September 30, 2017 mature during 2017 and 2018 and mainly relate to the Euro, Japanese yen, Canadian dollar, Australian dollar, Swedish krona, British pound, Brazilian real, Mexican peso, Norwegian krone, New Zealand dollar, Hungarian forint and Taiwan dollar. As of September 30, 2017, the Company estimates that during the next 12 months, it will reclassify approximately $9.6 million of net losses (based on current rates) from Accumulated other comprehensive loss to Cost of sales. Interest Rate Derivatives. The Company enters into fixed-to-floating interest rate swaps to convert a portion of the Company's long-term debt from fixed to floating rate debt. As of September 30, 2017, December 31, 2016 and October 1, 2016, the outstanding swaps had notional contract values of $200.0 million, of which $150.0 million corresponds to the Company's 4.625 percent Senior notes due 2021 and $50.0 million corresponds to the Company's 7.375 percent Debentures due 2023. As of September 30, 2017, December 31, 2016 and October 1, 2016, the Company had $3.7 million, $4.5 million and $4.8 million, respectively, of net deferred losses associated with all settled forward-starting interest rate swaps, which were included in Accumulated other comprehensive loss. As of September 30, 2017, the Company estimates that during the next 12 months, it will reclassify approximately $1.0 million of net losses resulting from settled forward-starting interest rate swaps from Accumulated other comprehensive loss to Interest expense. Commodity Price Derivatives. There were no commodity swap contracts outstanding at September 30, 2017 and December 31, 2016. As of October 1, 2016, the notional value of commodity swap contracts outstanding was $2.3 million. As of September 30, 2017, December 31, 2016 and October 1, 2016, the fair values of the Company’s derivative instruments were:
(in millions) |  |  |  |  |  |  |  |  |  |  |  |
|  | Derivative Assets |  | Derivative Liabilities
Instrument |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
|  |  |  | Sep 30, 2017 |  | Dec 31, 2016 |  | Oct 1, 2016 |  |  |  | Sep 30, 2017 |  | Dec 31, 2016 |  | Oct 1, 2016
Derivatives Designated as Cash Flow Hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepaid expenses and other |  | $ | 1.7 |  |  | $ | 7.2 |  |  | $ | 3.1 |  |  | Accrued expenses |  | $ | 10.5 |  |  | $ | 2.6 |  |  | $ | 3.1 |
Commodity contracts |  | Prepaid expenses and other |  | — |  |  | — |  |  | — |  |  | Accrued expenses |  | — |  |  | — |  |  | 0.1 |
Total |  |  |  | $ | 1.7 |  |  | $ | 7.2 |  |  | $ | 3.1 |  |  |  |  | $ | 10.5 |  |  | $ | 2.6 |  |  | $ | 3.2 |
Derivatives Designated as Fair Value Hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | Prepaid expenses and other |  | $ | 2.9 |  |  | $ | 2.1 |  |  | $ | 2.9 |  |  | Accrued expenses |  | $ | 2.3 |  |  | $ | 1.7 |  |  | $ | 2.1 |
Interest rate contracts |  | Other long-term assets |  | 2.3 |  |  | 0.7 |  |  | 7.0 |  |  | Other long-term liabilities |  | — |  |  | 0.2 |  |  | — |
Total |  |  |  | $ | 5.2 |  |  | $ | 2.8 |  |  | $ | 9.9 |  |  |  |  | $ | 2.3 |  |  | $ | 1.9 |  |  | $ | 2.1 |
Other Hedging Activity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Prepaid expenses and other |  | $ | 0.3 |  |  | $ | 1.2 |  |  | $ | 0.2 |  |  | Accrued expenses |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 0.5 |
Commodity contracts |  | Prepaid expenses and other |  | — |  |  | — |  |  | — |  |  | Accrued expenses |  | — |  |  | — |  |  | 0.3 |
Total |  |  |  | $ | 0.3 |  |  | $ | 1.2 |  |  | $ | 0.2 |  |  |  |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 0.8 |
The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three months and nine months ended September 30, 2017 and October 1, 2016 was:
(in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives Designated as Cash Flow Hedging Instruments |  | Amount of Gain (Loss) on Derivatives Recognized in Accumulated Other Comprehensive Loss (Effective Portion) |  | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion) |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)
|  | Three Months Ended |  | Nine Months Ended |  |  |  | Three Months Ended |  | Nine Months Ended
|  | Sep 30, 2017 |  | Oct 1, 2016 |  | Sep 30, 2017 |  | Oct 1, 2016 |  |  |  | Sep 30, 2017 |  | Oct 1, 2016 |  | Sep 30, 2017 |  | Oct 1, 2016
Interest rate contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Interest expense |  | $ | (0.3 | ) |  | $ | (0.3 | ) |  | $ | (0.8 | ) |  | $ | (0.3 | )
Foreign exchange contracts |  | (10.4 | ) |  | (0.2 | ) |  | (15.3 | ) |  | (3.2 | ) |  | Cost of sales |  | (0.9 | ) |  | 0.4 |  |  | 1.2 |  |  | 3.1 |
Commodity contracts |  | — |  |  | 0.0 |  |  | — |  |  | 0.0 |  |  | Cost of sales |  | — |  |  | (0.1 | ) |  | (0.0 | ) |  | (0.5 | )
Total |  | $ | (10.4 | ) |  | $ | (0.2 | ) |  | $ | (15.3 | ) |  | $ | (3.2 | ) |  |  |  | $ | (1.2 | ) |  | $ | 0.0 |  |  | $ | 0.4 |  |  | $ | 2.3 |
Derivatives Designated as Fair Value Hedging Instruments |  | Location of Gain on Derivatives Recognized in Earnings |  | Amount of Gain on Derivatives Recognized in Earnings
|  |  |  | Three Months Ended |  | Nine Months Ended
|  |  |  | Sep 30, 2017 |  | Oct 1, 2016 |  | Sep 30, 2017 |  | Oct 1, 2016
Interest rate contracts |  | Interest expense |  | $ | 0.5 |  |  | $ | 0.6 |  |  | $ | 1.6 |  |  | $ | 2.2 |
Other Hedging Activity |  | Location of Gain (Loss) on Derivatives Recognized in Earnings |  | Amount of Gain (Loss) on Derivatives Recognized in Earnings
|  |  |  | Three Months Ended |  | Nine Months Ended
|  |  |  | Sep 30, 2017 |  | Oct 1, 2016 |  | Sep 30, 2017 |  | Oct 1, 2016
Foreign exchange contracts |  | Cost of sales |  | $ | (4.9 | ) |  | $ | (2.2 | ) |  | $ | (11.8 | ) |  | $ | (8.6 | )
Foreign exchange contracts |  | Other income, net |  | (0.1 | ) |  | 0.3 |  |  | (1.1 | ) |  | 1.0 |
Commodity contracts |  | Cost of sales |  | — |  |  | 0.1 |  |  | — |  |  | 0.3 |
Total |  |  |  | $ | (5.0 | ) |  | $ | (1.8 | ) |  | $ | (12.9 | ) |  | $ | (7.3 | )
Fair Value of Other Financial Instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents, accounts and notes receivable and short-term debt approximate their fair values because of the short maturity of these instruments. At September 30, 2017, December 31, 2016 and October 1, 2016, the fair value of the Company’s long-term debt was approximately $492.8 million, $498.5 million and $485.4 million, respectively, and was determined using Level 1 and Level 2 inputs described in Note 7 – Fair Value Measurements, in the Notes to Consolidated Financial Statements in the 2016 Form 10-K. The carrying value of long-term debt, including current maturities, was $441.8 million, $444.6 million and $447.9 million as of September 30, 2017, December 31, 2016 and October 1, 2016, respectively.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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