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Derivative Contracts | 9 Months Ended
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Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Contracts | Derivative Contracts The following tables summarize information on the location and amounts of derivative fair values on the consolidated balance sheet as at September 30, 2018 and December 31, 2017:
|  |  |  | As at September 30, 2018 |  | As at December 31, 2017 |
Derivatives Not Designated as Hedging Instruments Under ASC 815 |  | Balance Sheet Location |  | Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value |
|  |  |  | ($ in millions) |  | ($ in millions) |
Foreign Exchange Contracts |  | Derivatives at Fair Value |  | $ | 661.5 |  |  | $ | 7.0 |  |  | $ | 577.7 |  |  | $ | 5.0 |  |
Foreign Exchange Contracts |  | Liabilities under Derivative Contracts |  | $ | 544.4 |  |  | $ | (3.1 | ) | (1) | $ | 173.9 |  |  | $ | (1.0 | ) |
(1) | Net of $0.5 million cash collateral (December 31, 2017 — $0.6 million).
|  |  |  | As at September 30, 2018 |  | As at December 31, 2017 |
Derivatives Designated as Hedging Instruments Under ASC 815 |  | Balance Sheet Location |  | Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value |
|  |  |  | ($ in millions) |  | ($ in millions) |
Foreign Exchange Contracts |  | Derivatives at Fair Value |  | $ | 30.9 |  |  | $ | (0.6 | ) |  | $ | 60.6 |  |  | $ | 1.4 |  |
The following table provides the unrealized and realized gains recorded in the statements of operations and other comprehensive income for derivatives that are not designated or designated as hedging instruments under ASC 815 - “Derivatives and Hedging” for the three and nine months ended September 30, 2018 and 2017.
|  |  |  |  |  | Amount of Gain Recognized on Derivatives
|  |  |  |  |  | Three Months Ended |  | Nine Months Ended
|  |  | Location of Gain Recognized on Derivatives |  | September 30, 2018 |  | September 30, 2017 |  | September 30, 2018 |  | September 30, 2017
Derivatives not designated as hedges |  |  |  |  | ($ in millions) |  | ($in millions)
Foreign Exchange Contracts |  | Change in Fair Value of Derivatives |  | 7.2 |  |  | 4.5 |  |  | (15.4 | ) |  | 25.2 |
Derivatives designated as hedges |  |  |  |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | General, administrative and corporate expenses |  | (2.7 | ) |  | 1.2 |  |  | 0.3 |  |  | 2.4 |
Foreign Exchange Contracts |  | Net change from current period hedged transactions |  | (0.5 | ) |  | (0.4 | ) |  | (2.2 | ) |  | 3.3 |
Foreign Exchange Contracts. The Company uses foreign exchange contracts to manage foreign currency risk associated with our operating expenses but also foreign exchange risk associated with net assets or liabilities in currencies other than the U.S. dollar. A foreign exchange contract involves an obligation to purchase or sell a specified currency at a future date at a price set at the time of the contract. Foreign exchange contracts will not eliminate fluctuations in the value of the Company’s assets and liabilities denominated in foreign currencies but rather allow it to establish a rate of exchange for a future point in time. As at September 30, 2018, the Company held foreign exchange contracts that were not designated as hedging under ASC 815 with an aggregate notional value of $1,205.9 million (December 31, 2017 — $751.6 million). The foreign exchange contracts are recorded as derivatives at fair value with changes recorded as a change in fair value of derivatives in the statement of operations. For the three and nine months ended September 30, 2018, the impact of foreign exchange contracts on net income was a gain of $7.2 million (September 30, 2017 — gain of $4.5 million) and a loss of $15.4 million (September 30, 2017 — gain of $25.2 million), respectively. As at September 30, 2018, the Company held foreign exchange contracts that were designated as hedging under ASC 815 with an aggregate nominal amount of $30.9 million (December 31, 2017 — $60.6 million). The foreign exchange contracts are recorded as derivatives at fair value in the balance sheet with the effective portion recorded in other comprehensive income and the ineffective portion recorded as a change in fair value of derivatives in the statement of operations. The contracts are considered to be effective and therefore the movement in other comprehensive income representing the effective portion for the three and nine months ended September 30, 2018 was a net unrealized loss of $0.5 million (September 30, 2017 — loss of $0.4 million) and a net unrealized loss of $2.2 million (September 30, 2017 —gain of $3.3 million), respectively. As the foreign exchange contracts settle, the realized gain or loss is reclassified from other comprehensive income into general, administration and corporate expenses of the statement of operations and other comprehensive income. For the three and nine months ended September 30, 2018, the amount recognized within general, administrative and corporate expenses for settled foreign exchange contracts was a realized loss of $2.7 million (September 30, 2017 — gain of $1.2 million) and a realized gain of $0.3 million (September 30, 2017 — gain of $2.4 million), 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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