XML 63 R22.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Fair Value Measurements | 12 Months Ended
--- | ---
Dec. 31, 2018
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 13. Fair Value Measurements The Company applies the provisions of FASB ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820, for its financial and non-financial assets and liabilities. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the asset or liability. The Company measures certain assets and liabilities at fair value as discussed throughout the notes to its consolidated financial statements. Foreign exchange currency contracts are valued using standard calculations and models primarily based on inputs such as observable forward rates, spot rates, and foreign currency exchange rates at the reporting period ended date. The Company’s derivative assets and liabilities are measured at fair value and consisted of Level 2 inputs and their amounts are shown below at their gross values as of December 31, 2018 and 2017:
|  | Balance Sheet Location |  | Significant Other Observable Inputs (Level 2) Fair Value as of December 31, 2018 |  |  | Significant Other Observable Inputs (Level 2) Fair Value as of December 31, 2017 |
|  |  |  | (in millions) |
ASSETS: |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges |  | Prepaid expenses and other current assets |  | $ | 0.5 |  |  | $ | 2.9 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | Prepaid expenses and other current assets |  |  | 2.8 |  |  |  | 2.9 |
|  |  |  | $ | 3.3 |  |  | $ | 5.8 |
LIABILITIES: |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges |  | Other current liabilities |  | $ | 0.7 |  |  | $ | 4.0 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | Other current liabilities |  |  | 1.0 |  |  |  | 2.6 |
|  |  |  | $ | 1.7 |  |  | $ | 6.6 |
The Company’s CVR liability is measured at fair value and consisted of Level 3 inputs. See Note 8, Shareholders’ Deficit, for a further description of the CVR liability. The following is a reconciliation of the CVR liability reported in Other current liabilities within the Company’s consolidated balance sheet as of December 31, 2018:
|  | Contingent Value Right |
|  | (in millions) |
Fair value as of December 31, 2017 |  | $ | 6.9 |
Net unrealized loss(1) |  |  | 8.8 |
Fair value as of December 31, 2018 |  | $ | 15.7 |
(1) | Unrealized gains and losses related to the revaluation of the CVR are recorded in other expense (income), net within the Company’s consolidated statements of income.
The Company’s deferred compensation plan assets consist of Company-owned life insurance policies. As these policies are recorded at their cash surrender value, they are not required to be included in the fair value table above. See Note 6, Employee Compensation Plans, for a further description of its deferred compensation plan assets. The following tables summarize the offsetting of the fair values of the Company’s derivative assets and derivative liabilities for presentation in the Company’s consolidated balance sheets as of December 31, 2018 and 2017:
|  | Offsetting of Derivative Assets |
|  | Gross Amounts of Recognized Assets |  |  | Gross Amounts Offset in the Balance Sheet |  |  | Net Amounts of Assets Presented in the Balance Sheet |
|  | (in millions) |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | $ | 3.3 |  |  | $ | (1.2 | ) |  | $ | 2.1 |
Total |  | $ | 3.3 |  |  | $ | (1.2 | ) |  | $ | 2.1 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | $ | 5.8 |  |  | $ | (4.3 | ) |  | $ | 1.5 |
Total |  | $ | 5.8 |  |  | $ | (4.3 | ) |  | $ | 1.5 |
|  | Offsetting of Derivative Liabilities |
|  | Gross Amounts of Recognized Liabilities |  |  | Gross Amounts Offset in the Balance Sheet |  |  | Net Amounts of Liabilities Presented in the Balance Sheet |
|  | (in millions) |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | $ | 1.7 |  |  | $ | (1.2 | ) |  | $ | 0.5 |
Total |  | $ | 1.7 |  |  | $ | (1.2 | ) |  | $ | 0.5 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | $ | 6.6 |  |  | $ | (4.3 | ) |  | $ | 2.3 |
Total |  | $ | 6.6 |  |  | $ | (4.3 | ) |  | $ | 2.3 |
The Company offsets all of its derivative assets and derivative liabilities in its consolidated balance sheets to the extent it maintains master netting arrangements with related financial institutions. As of December 31, 2018 and 2017, all of the Company’s derivatives were subject to master netting arrangements and no collateralization was required for the Company’s derivative assets and derivative liabilities.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration