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Derivatives (Notes) | 9 Months Ended
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Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
10. | Derivatives
Hedge Accounting and Hedging Programs We recognize all derivative instruments as either assets or liabilities in our Condensed Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Balance Sheet Hedging Hedges of Foreign Currency Assets and Liabilities We hedge portions of our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. At September 30, 2018 and December 31, 2017, the notional amounts of foreign currency forward exchange contracts outstanding not designated as hedging instruments were $47,614 and $60,858, respectively. Cash Flow Hedging Hedges of Forecasted Foreign Currency Transactions In countries outside the U.S., we transact business in U.S. dollars and in various other currencies. We may use foreign exchange option contracts or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to one year. We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business, and accordingly, they are not speculative in nature. The notional amounts of outstanding foreign currency forward contracts designated as cash flow hedges were $2,952 and $2,928 as of September 30, 2018 and December 31, 2017, respectively. The notional amounts of outstanding foreign currency option contracts designated as cash flow hedges were $8,737 and $8,619 as of September 30, 2018 and December 31, 2017, respectively. Foreign Currency Derivatives We use foreign currency exchange rate derivatives to hedge our exposure to fluctuations in exchange rates for anticipated intercompany cash transactions between Tennant Company and its subsidiaries. We entered into Euro to U.S. dollar foreign exchange cross currency swaps for all of the anticipated cash flows associated with an intercompany loan from a wholly owned European subsidiary. We enter into these foreign exchange cross currency swaps to hedge the foreign currency denominated cash flows associated with this intercompany loan, and accordingly, they are not speculative in nature. These cross currency swaps are designated as cash flow hedges. The hedged cash flows as of September 30, 2018 and December 31, 2017 included €175,800 and €181,200 of total notional values, respectively. As of September 30, 2018, the aggregate scheduled interest payments over the course of the loan and related swaps amounted to €25,800. The scheduled maturity and principal payment of the loan and related swaps of €150,000 are due in April 2022. The fair value of derivative instruments on our Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 was as follows:
|  | September 30, 2018 |  | December 31, 2017
|  | Fair Value Asset Derivatives |  | Fair Value Liability Derivatives |  | Fair Value Asset Derivatives |  | Fair Value Liability Derivatives
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign currency option contracts(1) |  | $ | 113 |  |  | $ | — |  |  | $ | 86 |  |  | $ | — |
Foreign currency forward contracts(1) |  | 7,038 |  |  | 29,868 |  |  | 7,218 |  |  | 34,961 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Foreign currency forward contracts(1) |  | $ | 653 |  |  | $ | 358 |  |  | $ | 442 |  |  | $ | 425 |
(1) | Contracts that mature within the next 12 months are included in Other Current Assets and Other Current Liabilities for asset derivatives and liability derivatives, respectively, on our Condensed Consolidated Balance Sheets. Contracts with maturities greater than 12 months are included in Other Assets and Other Liabilities for asset derivatives and liability derivatives, respectively, in our Condensed Consolidated Balance Sheets. Amounts included in our Condensed Consolidated Balance Sheets are recorded net where a right of offset exists with the same derivative counterparty.
As of September 30, 2018, we anticipate reclassifying approximately $2,129 of gains from Accumulated Other Comprehensive Loss to net earnings during the next 12 months. The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 was as follows:
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2018 |  | September 30, 2018
|  | Foreign Currency Option Contracts |  | Foreign Currency Forward Contracts |  | Foreign Currency Option Contracts |  | Foreign Currency Forward Contracts
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |
Net (loss) gain recognized in Other Comprehensive (Loss) Income, net of tax(1) |  | $ | (89 | ) |  | $ | 1,253 |  |  | $ | (40 | ) |  | $ | 4,929 |
Net loss reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Sales |  | (7 | ) |  | (33 | ) |  | (91 | ) |  | (34 | )
Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Interest Income |  | — |  |  | 487 |  |  | — |  |  | 1,345 |
Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Foreign Currency Transaction Losses |  | — |  |  | 739 |  |  | — |  |  | 4,724 |
Net (loss) gain recognized in earnings(2) |  | (5 | ) |  | 2 |  |  | 3 |  |  | 8 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Net (loss) gain recognized in earnings(3) |  | $ | — |  |  | $ | (658 | ) |  | $ | — |  |  | $ | 1,174 |
The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017 was as follows:
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, 2017 |  | September 30, 2017
|  | Foreign Currency Option Contracts |  | Foreign Currency Forward Contracts |  | Foreign Currency Option Contracts |  | Foreign Currency Forward Contracts
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |
Net loss recognized in Other Comprehensive (Loss) Income, net of tax(1) |  | $ | (40 | ) |  | $ | (4,492 | ) |  | $ | (177 | ) |  | $ | (14,026 | )
Net (loss) gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Sales |  | (141 | ) |  | 26 |  |  | (140 | ) |  | (76 | )
Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Interest Income |  | — |  |  | 374 |  |  | — |  |  | 823 |
Net loss reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Foreign Currency Transaction Losses |  | — |  |  | (3,705 | ) |  | — |  |  | (10,853 | )
Net (loss) gain recognized in earnings(2) |  | (7 | ) |  | 3 |  |  | (12 | ) |  | 8 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Net loss recognized in earnings(3) |  | $ | — |  |  | $ | (2,062 | ) |  | $ | (1,132 | ) |  | $ | (7,369 | )
(1) | Net change in the fair value of the effective portion classified in Other Comprehensive (Loss) Income.
(2) | Ineffective portion and amount excluded from effectiveness testing classified in Net Foreign Currency Transaction Losses.
(3) | Classified in Net Foreign Currency Transaction Losses.

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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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