XML 36 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule Of Derivatives At Fair Value
Derivatives recorded at fair value on our condensed consolidated balance sheets consisted of the following (in millions):
 
Derivative Assets
 
Derivative Liabilities
 
September 30,
2017
 
December 31,
2016
 
September 30,
2017
 
December 31,
2016
Derivatives Designated as Hedging Instruments
 
 
 

 
 

 
 

Foreign currency forward contracts - current(1)
$
6.4

 
$
4.1

 
$
.7

 
$
11.4

Foreign currency forward contracts - non-current(2)
.7

 
.2

 
.1

 
.8

 
7.1

 
4.3

 
.8

 
12.2

 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments
 
 
 

 
 

 
 

Foreign currency forward contracts - current(1)
.8

 
.4

 
1.1

 
1.3

 
.8

 
.4

 
1.1

 
1.3

Total
$
7.9

 
$
4.7

 
$
1.9

 
$
13.5

 
(1) 
Derivative assets and liabilities with maturity dates equal to or less than twelve months from the respective balance sheet date were included in other current assets and accrued liabilities and other, respectively, on our condensed consolidated balance sheets.

(2) 
Derivative assets and liabilities with maturity dates greater than twelve months from the respective balance sheet date were included in other assets, net, and other liabilities, respectively, on our condensed consolidated balance sheets.
Gains And Losses On Derivatives Designated As Cash Flow Hedges
Gains and losses, net of tax, on derivatives designated as cash flow hedges included in our condensed consolidated statements of operations and comprehensive (loss) income were as follows (in millions):

Three Months Ended September 30, 2017 and 2016
 
Gain (Loss) Recognized in Other Comprehensive (Loss) Income (Effective Portion)  
 
(Loss) Gain Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion)(1)
 
Gain Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)(2)
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Interest rate lock contracts(3)
$
—

 
$
—

 
$
(.1
)
 
$
(.1
)
 
$
—

 
$
—

Foreign currency forward contracts(4)
1.7

 
—

 
.2

 
(2.1
)
 
.3

 
.2

Total
$
1.7

 
$
—

 
$
.1

 
$
(2.2
)
 
$
.3

 
$
.2


Nine Months Ended September 30, 2017 and 2016
 
Gain (Loss) Recognized in Other Comprehensive (Loss) Income (Effective Portion)  
 
Loss Reclassified from AOCI into Income (Effective Portion)(1)
 
(Loss) Gain Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)(2)
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Interest rate lock contracts(3)
$
—

 
$
—

 
$
(.3
)
 
$
(.2
)
 
$
—

 
$
—

Foreign currency forward contracts(5)
7.7

 
(.6
)
 
(.8
)
 
(9.9
)
 
(.1
)
 
2.1

Total
$
7.7

 
$
(.6
)
 
$
(1.1
)
 
$
(10.1
)
 
$
(.1
)
 
$
2.1



(1)
Changes in the effective portion of cash flow hedge fair values are recorded in AOCI.  Amounts recorded in AOCI associated with cash flow hedges are subsequently reclassified into contract drilling, depreciation or interest expense as earnings are affected by the underlying hedged forecasted transaction.

(2)
Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other, net, in our condensed consolidated statements of operations.

(3)
Losses on interest rate lock derivatives reclassified from AOCI into income were included in interest expense, net, in our condensed consolidated statements of operations.

(4) 
During the three-month period ended September 30, 2017, there were no net amounts reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the three-month period ended September 30, 2016, $2.3 million of losses were reclassified from AOCI into contract drilling expense and $200,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations.

(5) 
During the nine-month period ended September 30, 2017, $1.4 million of losses were reclassified from AOCI into contract drilling expense and $600,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the nine-month period ended September 30, 2016, $10.5 million of losses were reclassified from AOCI into contract drilling expense and $600,000 of gains were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations.