Financial Instruments, Risk Management and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments.



	June 30, 2017
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges			Not Designated as Hedging Instruments			Total Gross Amounts			Gross Amounts Offset in the Consolidated Balance Sheet ⁽³⁾			Net Amounts
Foreign exchange contracts	$	5.4		$	0.9		$	6.3		$	(1.9	)	$	4.4
Energy contracts	0.1			—			0.1			—			0.1
Total derivative assets⁽¹⁾	5.5			0.9			6.4			(1.9		)	4.5

Foreign exchange contracts	$	(5.5	)	$	(0.3	)	$	(5.8	)	$	1.9		$	(3.9	)
Energy contracts	(0.2		)	—			(0.2		)	—			(0.2		)
Total derivative liabilities⁽²⁾	(5.7		)	(0.3		)	(6.0		)	1.9			(4.1		)

Net derivative assets (liabilities)	$	(0.2	)	$	0.6		$	0.4		$	—		$	0.4



	December 31, 2016
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges			Not Designated as Hedging Instruments			Total Gross Amounts			Gross Amounts Offset in the Consolidated Balance Sheet ⁽³⁾			Net Amounts
Foreign exchange contracts	$	9.8		$	0.8		$	10.6		$	(6.2	)	$	4.4
Energy contracts	2.0			—			2.0			—			2.0
Total derivative assets⁽¹⁾	11.8			0.8			12.6			(6.2		)	6.4

Foreign exchange contracts	$	(5.5	)	$	(9.6	)	$	(15.1	)	$	6.2		$	(8.9	)
Energy contracts	—			—			—			—			—
Total derivative liabilities⁽²⁾	(5.5		)	(9.6		)	(15.1		)	6.2			(8.9		)

Net derivative assets (liabilities)	$	6.3		$	(8.8	)	$	(2.5	)	$	—		$	(2.5	)

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(1)	Net balance is included in “Prepaid and other current assets” in the condensed consolidated balance sheets.


(2)	Net balance is included in “Accrued and other liabilities” in the condensed consolidated balance sheets.


(3)	Represents net derivatives positions subject to master netting arrangements.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The tables below summarize the gains or losses related to our cash flow hedges and derivatives not designated as hedging instruments.

Derivatives in Cash Flow Hedging Relationships



	Three Months Ended June 30
	Contracts
	Foreign Exchange						Energy					Total
(in Millions)	2017			2016			2017			2016		2017			2016
Unrealized hedging gains (losses) and other, net of tax	$	(2.5	)	$	(2.2	)	$	(0.1	)	$	0.6	$	(2.6	)	$	(1.6	)
Reclassification of deferred hedging (gains) losses, net of tax ⁽¹⁾
Effective portion ⁽¹⁾	0.2			1.0			0.1			0.7		0.3			1.7
Total derivative instrument impact on comprehensive income, net of tax	$	(2.3	)	$	(1.2	)	$	—		$	1.3	$	(2.3	)	$	0.1



	Six Months Ended June 30
	Contracts
	Foreign Exchange					Energy					Total
(in Millions)	2017			2016		2017			2016		2017			2016
Unrealized hedging gains (losses) and other, net of tax	$	(0.6	)	$	0.7	$	(0.9	)	$	—	$	(1.5	)	$	0.7
Reclassification of deferred hedging (gains) losses, net of tax ⁽¹⁾
Effective portion ⁽¹⁾	0.3			3.0		(0.5		)	1.1		(0.2		)	4.1
Total derivative instrument impact on comprehensive income, net of tax	$	(0.3	)	$	3.7	$	(1.4	)	$	1.1	$	(1.7	)	$	4.8

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(1)	See Note 13 for classification of amounts within the condensed consolidated statements of income (loss).

Derivatives Not Designated as Hedging Instruments



	Location of Gain or (Loss) Recognized in Income on Derivatives	Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives ⁽¹⁾
		Three Months Ended June 30					Six Months Ended June 30
(in Millions)		2017			2016		2017			2016
Foreign exchange contracts	Cost of sales and services	$	(4.2	)	$	11.7	$	(10.5	)	$	28.3
Total		$	(4.2	)	$	11.7	$	(10.5	)	$	28.3

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(1)	Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in the condensed consolidated balance sheets. During the periods presented there were no transfers between fair-value hierarchy levels.



(in Millions)	June 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Derivatives – Commodities ⁽¹⁾:
Energy contracts	$	0.1	$	—	$	0.1	$	—
Derivatives – Foreign exchange⁽¹⁾	4.4		—		4.4		—
Other⁽²⁾	28.4		28.4		—		—
Total assets	$	32.9	$	28.4	$	4.5	$	—

Liabilities
Derivatives – Commodities ⁽¹⁾:
Energy contracts	$	0.2	$	—	$	0.2	$	—
Derivatives – Foreign exchange ⁽¹⁾	3.9		—		3.9		—
Other⁽³⁾	35.9		35.2		0.7		—
Total liabilities	$	40.0	$	35.2	$	4.8	$	—



(in Millions)	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Derivatives – Commodities ⁽¹⁾:
Energy contracts	$	2.0	$	—	$	2.0	$	—
Derivatives – Foreign exchange ⁽¹⁾	4.4		—		4.4		—
Other⁽²⁾	25.3		25.3		—		—
Total assets	$	31.7	$	25.3	$	6.4	$	—

Liabilities
Derivatives – Commodities ⁽¹⁾:
Energy contracts	$	—	$	—	$	—	$	—
Derivatives – Foreign exchange⁽¹⁾	8.9		—		8.9		—
Other ⁽³⁾	31.1		30.5		0.6		—
Total liabilities	$	40.0	$	30.5	$	9.5	$	—

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(1)	See the Fair Value of Derivative Instruments table within this Note for classification on the condensed consolidated balance sheets.


(2)	Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheets. Both the asset and liability are recorded at fair value. Asset amounts included in “Other assets” in the condensed consolidated balance sheets.


(3)	Consist of a deferred compensation arrangement recognized on our balance sheets. Both the asset and liability are recorded at fair value. Liability amounts included in “Other long-term liabilities” in the condensed consolidated balance sheets.

Fair Value Measurements, Nonrecurring

The following table presents our fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis in the condensed consolidated balance sheets during the periods ended June 30, 2017 and December 31, 2016.



(in Millions)	June 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) (Period Ended June 30, 2017)
Assets
Net assets of discontinued operations held for sale ⁽¹⁾	$	37.0	$	—	$	—	$	37.0	$	(170.9	)
Total assets	$	37.0	$	—	$	—	$	37.0	$	(170.9	)

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(1)

As further discussed in Note 10, the fair value of the FMC Health and Nutrition business being exchanged to DuPont are significantly greater than its carrying value. However, we determined the fair value of our separate Omega-3 assets held for sale, which are not included in the expected DuPont transaction, to be significantly less than carrying value. These assets used to be part of the broader FMC Health and Nutrition reporting unit. The charge was recorded to “Discontinued operations, net of income taxes” on the condensed consolidated statements of income (loss) for the six months ended June 30, 2017.



(in Millions)	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) (Period Ended December 31, 2016)
Assets
Impairment of intangibles⁽¹⁾	$	5.9	$	—	$	—	$	5.9	$	(1.0	)
Total assets	$	5.9	$	—	$	—	$	5.9	$	(1.0	)

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(1)	We recorded an impairment charge, related to our FMC Agricultural Solutions segment, to write down the carrying value of the generic brand portfolio of approximately $1 million to its fair value.