XML 61 R20.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Derivative Instruments and Hedging Activities | 12 Months Ended
--- | ---
Dec. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | 11. Derivative Instruments and Hedging Activities Foreign Currency Instruments The Company designates certain foreign currency derivatives, primarily comprised of foreign currency forward contracts, as freestanding derivatives for which hedge accounting does not apply. The changes in the fair market value of these freestanding derivatives are included in selling, general, and administrative expenses in the Company’s consolidated statements of income. The Company primarily uses freestanding foreign currency derivatives to hedge foreign currency-denominated intercompany transactions and to partially mitigate the impact of foreign currency fluctuations. The fair value of the freestanding foreign currency derivatives is based on third-party quotes. The Company’s foreign currency derivative contracts are generally executed on a monthly basis. The Company designates as cash-flow hedges those foreign currency forward contracts it enters into to hedge forecasted inventory purchases and intercompany management fees that are subject to foreign currency exposures. Forward contracts are used to hedge forecasted inventory purchases over specific months. Changes in the fair value of these forward contracts, excluding forward points, designated as cash-flow hedges are recorded as a component of accumulated other comprehensive loss within shareholders’ deficit, and are recognized in cost of sales in the consolidated statement of income during the period which approximates the time the hedged inventory is sold. The Company also hedges forecasted intercompany management fees over specific months. These contracts allow the Company to sell Euros in exchange for U.S. dollars at specified contract rates. Changes in the fair value of these forward contracts designated as cash flow hedges are recorded as a component of accumulated other comprehensive loss within shareholders’ deficit, and are recognized in selling, general, and administrative expenses within the Company’s consolidated statement of income during the period when the hedged item and underlying transaction affect earnings. As of December 31, 2018 and 2017, the aggregate notional amounts of all foreign currency contracts outstanding designated as cash flow hedges were approximately $43.8 million and $104.9 million, respectively. As of December 31, 2018, these outstanding contracts were expected to mature over the next eleven months. The Company’s derivative financial instruments are recorded on the consolidated balance sheets at fair value based on third-party quotes. As of December 31, 2018, the Company recorded assets at fair value of $0.5 million and liabilities at fair value of $0.7 million relating to all outstanding foreign currency contracts designated as cash-flow hedges. As of December 31, 2017, the Company recorded assets at fair value of $2.9 million and liabilities at fair value of $4.0 million relating to all outstanding foreign currency contracts designated as cash-flow hedges. The Company assesses hedge effectiveness and measures hedge ineffectiveness at least quarterly. During the years ended December 31, 2018, 2017, and 2016, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of December 31, 2018 and 2017. As of December 31, 2018 and 2017, the majority of the Company’s outstanding foreign currency forward contracts had maturity dates of less than twelve months with the majority of freestanding derivatives expiring within one month as of December 31, 2018 and 2017. The tables below provide information about the details of all foreign currency forward contracts that were outstanding as of December 31, 2018 and 2017:
|  | Weighted-Average Contract Rate |  |  | Notional Amount |  |  | Fair Value Gain (Loss) |
|  | (in millions, except weighted-average contract rate) |
As of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Buy Brazilian real sell U.S. dollar |  |  | 3.92 |  |  | $ | 4.3 |  |  | $ | — |
Buy British pound sell Euro |  |  | 0.90 |  |  |  | 8.3 |  |  |  | — |
Buy British pound sell U.S. dollar |  |  | 1.27 |  |  |  | 2.7 |  |  |  | — |
Buy Chinese yuan sell Euro |  |  | 8.14 |  |  |  | 58.6 |  |  |  | 1.7 |
Buy Colombian peso sell U.S. dollar |  |  | 3,313.00 |  |  |  | 1.8 |  |  |  | — |
Buy Euro sell Australian dollar |  |  | 1.61 |  |  |  | 1.1 |  |  |  | — |
Buy Euro sell British pound |  |  | 0.91 |  |  |  | 4.7 |  |  |  | — |
Buy Euro sell Canadian dollar |  |  | 1.55 |  |  |  | 0.2 |  |  |  | — |
Buy Euro sell Chinese yuan |  |  | 7.91 |  |  |  | 6.3 |  |  |  | — |
Buy Euro sell Ghanaian cedi |  |  | 5.73 |  |  |  | 8.5 |  |  |  | (0.2 | )
Buy Euro sell Hong Kong dollar |  |  | 8.90 |  |  |  | 1.1 |  |  |  | — |
Buy Euro sell Indonesian rupiah |  |  | 16,780.97 |  |  |  | 7.3 |  |  |  | (0.1 | )
Buy Euro sell Japanese yen |  |  | 128.00 |  |  |  | 0.3 |  |  |  | — |
Buy Euro sell Kazakhstani tenge |  |  | 431.37 |  |  |  | 0.7 |  |  |  | — |
Buy Euro sell Malaysian ringgit |  |  | 4.79 |  |  |  | 3.7 |  |  |  | — |
Buy Euro sell Mexican peso |  |  | 23.48 |  |  |  | 55.0 |  |  |  | (0.9 | )
Buy Euro sell Peruvian nuevo sol |  |  | 3.83 |  |  |  | 2.2 |  |  |  | — |
Buy Euro sell Philippine peso |  |  | 60.58 |  |  |  | 3.9 |  |  |  | — |
Buy Euro sell Russian ruble |  |  | 78.87 |  |  |  | 3.3 |  |  |  | — |
Buy Euro sell South African rand |  |  | 16.55 |  |  |  | 4.6 |  |  |  | 0.1 |
Buy Euro sell Taiwan dollar |  |  | 34.98 |  |  |  | 1.2 |  |  |  | — |
Buy Euro sell Thai baht |  |  | 37.32 |  |  |  | 0.8 |  |  |  | — |
Buy Euro sell U.S. dollar |  |  | 1.15 |  |  |  | 51.2 |  |  |  | (0.1 | )
Buy Euro sell Ukrainian hryvnia |  |  | 32.28 |  |  |  | 2.6 |  |  |  | — |
Buy Hong Kong dollar sell Euro |  |  | 9.00 |  |  |  | 3.1 |  |  |  | — |
Buy Indian rupee sell U.S. dollar |  |  | 70.32 |  |  |  | 1.5 |  |  |  | — |
Buy Indonesian rupiah sell U.S. dollar |  |  | 14,670.00 |  |  |  | 7.0 |  |  |  | 0.1 |
Buy Korean won sell U.S. dollar |  |  | 1,116.38 |  |  |  | 5.0 |  |  |  | 0.1 |
Buy Mexican peso sell Euro |  |  | 22.89 |  |  |  | 10.9 |  |  |  | 0.1 |
Buy Mexican peso sell U.S. dollar |  |  | 19.68 |  |  |  | 0.7 |  |  |  | — |
Buy Norwegian krone sell U.S. dollar |  |  | 8.69 |  |  |  | 1.2 |  |  |  | — |
Buy Philippine peso sell Euro |  |  | 60.27 |  |  |  | 1.5 |  |  |  | — |
Buy Swedish krona sell U.S. dollar |  |  | 8.90 |  |  |  | 1.1 |  |  |  | — |
Buy Taiwan dollar sell U.S. dollar |  |  | 30.17 |  |  |  | 9.4 |  |  |  | 0.1 |
Buy U.S. dollar sell Brazilian real |  |  | 3.85 |  |  |  | 4.4 |  |  |  | — |
Buy U.S. dollar sell British pound |  |  | 1.27 |  |  |  | 1.4 |  |  |  | — |
Buy U.S. dollar sell Colombian peso |  |  | 3,262.80 |  |  |  | 1.4 |  |  |  | — |
Buy U.S. dollar sell Euro |  |  | 1.16 |  |  |  | 97.6 |  |  |  | 0.5 |
Buy U.S. dollar sell Mexican peso |  |  | 22.02 |  |  |  | 4.9 |  |  |  | 0.2 |
Total forward contracts |  |  |  |  |  | $ | 385.5 |  |  | $ | 1.6 |
|  | Weighted-Average Contract Rate |  |  | Notional Amount |  |  | Fair Value Gain (Loss) |
|  | (in millions, except weighted-average contract rate) |
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Buy Argentine peso sell Euro |  |  | 21.40 |  |  | $ | 0.5 |  |  | $ | — |
Buy Australian dollar sell Euro |  |  | 1.55 |  |  |  | 0.9 |  |  |  | — |
Buy British pound sell Euro |  |  | 0.88 |  |  |  | 3.4 |  |  |  | (0.1 | )
Buy British pound sell U.S. dollar |  |  | 1.35 |  |  |  | 2.8 |  |  |  | — |
Buy Canadian dollar sell Euro |  |  | 1.52 |  |  |  | 0.5 |  |  |  | — |
Buy Chilean peso sell Euro |  |  | 749.55 |  |  |  | 0.6 |  |  |  | — |
Buy Chinese yuan sell Euro |  |  | 8.03 |  |  |  | 25.9 |  |  |  | 0.4 |
Buy Euro sell Argentine peso |  |  | 21.46 |  |  |  | 0.5 |  |  |  | — |
Buy Euro sell Australian dollar |  |  | 1.56 |  |  |  | 4.8 |  |  |  | (0.1 | )
Buy Euro sell Canadian dollar |  |  | 1.52 |  |  |  | 0.5 |  |  |  | — |
Buy Euro sell Chilean peso |  |  | 749.35 |  |  |  | 1.1 |  |  |  | — |
Buy Euro sell Chinese yuan |  |  | 7.84 |  |  |  | 26.5 |  |  |  | 0.2 |
Buy Euro sell Ghana cedi |  |  | 5.61 |  |  |  | 3.0 |  |  |  | (0.1 | )
Buy Euro sell Hong Kong dollar |  |  | 9.26 |  |  |  | 6.8 |  |  |  | 0.1 |
Buy Euro sell Indonesian rupiah |  |  | 16,113.59 |  |  |  | 11.5 |  |  |  | 0.1 |
Buy Euro sell Japanese yen |  |  | 133.88 |  |  |  | 0.4 |  |  |  | — |
Buy Euro sell Kazakhstani tenge |  |  | 401.40 |  |  |  | 1.7 |  |  |  | — |
Buy Euro sell Malaysian ringgit |  |  | 4.84 |  |  |  | 1.6 |  |  |  | — |
Buy Euro sell Mexican peso |  |  | 22.65 |  |  |  | 59.1 |  |  |  | 3.6 |
Buy Euro sell Peruvian nuevo sol |  |  | 3.85 |  |  |  | 4.9 |  |  |  | — |
Buy Euro sell Philippine peso |  |  | 60.03 |  |  |  | 5.3 |  |  |  | — |
Buy Euro sell Russian ruble |  |  | 70.38 |  |  |  | 10.8 |  |  |  | (0.1 | )
Buy Euro sell South African rand |  |  | 16.37 |  |  |  | 3.8 |  |  |  | (0.3 | )
Buy Euro sell Taiwan dollar |  |  | 35.59 |  |  |  | 0.6 |  |  |  | — |
Buy Euro sell Thai baht |  |  | 38.33 |  |  |  | 1.3 |  |  |  | — |
Buy Euro sell U.S. dollar |  |  | 1.18 |  |  |  | 59.1 |  |  |  | 0.9 |
Buy Hong Kong dollar sell Euro |  |  | 9.31 |  |  |  | 3.0 |  |  |  | — |
Buy Indonesian rupiah sell Euro |  |  | 16,164.33 |  |  |  | 4.8 |  |  |  | — |
Buy Indonesian rupiah sell U.S. dollar |  |  | 13,676.00 |  |  |  | 6.2 |  |  |  | — |
Buy Kazakhstani tenge sell U.S. dollar |  |  | 338.75 |  |  |  | 0.9 |  |  |  | — |
Buy Korean won sell U.S. dollar |  |  | 1,077.18 |  |  |  | 5.4 |  |  |  | 0.1 |
Buy Malaysian ringgit sell Euro |  |  | 4.90 |  |  |  | 0.5 |  |  |  | — |
Buy Mexican peso sell Euro |  |  | 22.97 |  |  |  | 7.1 |  |  |  | (0.2 | )
Buy Norwegian krone sell U.S. dollar |  |  | 8.26 |  |  |  | 1.2 |  |  |  | — |
Buy Peruvian nuevo sol sell Euro |  |  | 3.85 |  |  |  | 2.3 |  |  |  | — |
Buy Russian ruble sell Euro |  |  | 70.47 |  |  |  | 4.4 |  |  |  | 0.1 |
Buy South African rand sell Euro |  |  | 15.18 |  |  |  | 0.9 |  |  |  | — |
Buy Swedish krona sell U.S. dollar |  |  | 8.37 |  |  |  | 1.9 |  |  |  | 0.1 |
Buy Taiwan dollar sell U.S. dollar |  |  | 29.78 |  |  |  | 5.9 |  |  |  | 0.1 |
Buy Thai baht sell Euro |  |  | 38.69 |  |  |  | 2.2 |  |  |  | — |
Buy U.S. dollar sell British pound |  |  | 1.34 |  |  |  | 6.8 |  |  |  | (0.1 | )
Buy U.S. dollar sell Colombian peso |  |  | 2,996.00 |  |  |  | 1.0 |  |  |  | — |
Buy U.S. dollar sell Euro |  |  | 1.15 |  |  |  | 141.1 |  |  |  | (5.3 | )
Buy U.S. dollar sell South African rand |  |  | 13.93 |  |  |  | 1.9 |  |  |  | (0.2 | )
Total forward contracts |  |  |  |  |  | $ | 435.4 |  |  | $ | (0.8 | )
The following tables summarize the derivative activity during the years ended December 31, 2018, 2017, and 2016 relating to all the Company’s derivatives. Gains and Losses on Derivative Instruments The following table summarizes gains (losses) relating to derivative instruments recorded in other comprehensive loss during the years ended December 31, 2018, 2017, and 2016:
|  | Amount of (Loss) Gain Recognized in Other Comprehensive (Loss) Income |
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in millions) |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges |  | $ | (3.6 | ) |  | $ | (7.9 | ) |  | $ | 8.1 |
As of December 31, 2018, the estimated amount of existing net gains related to cash flow hedges recorded in accumulated other comprehensive loss that are expected to be reclassified into earnings over the next twelve months was $1.8 million. The following table summarizes gains (losses) relating to derivative instruments recorded to income during the years ended December 31, 2018, 2017, and 2016:
|  | Amount of (Loss) Gain Recognized in Income |  |  |
|  | Year Ended December 31, |  |  |
|  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Location of (Loss) Gain Recognized in Income
|  | (in millions) |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges(1) |  | $ | (2.1 | ) |  | $ | (0.1 | ) |  | $ | 0.2 |  |  | Selling, general, and administrative expenses
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts |  | $ | (4.0 | ) |  | $ | (8.6 | ) |  | $ | (4.3 | ) |  | Selling, general, and administrative expenses
(1) | For foreign exchange contracts designated as hedging instruments, the amounts recognized in income primarily represent the amounts excluded from the assessment of hedge effectiveness for the years ended December 31, 2018, 2017, and 2016.
The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the years ended December 31, 2018, 2017, and 2016:
|  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss to Income |  |  |
|  | Year Ended December 31, |  |  |
|  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss to Income (Effective Portion)
|  | (in millions) |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange currency contracts relating to inventory hedges |  | $ | 3.6 |  |  | $ | (0.5 | ) |  | $ | 14.7 |  |  | Cost of sales
Foreign exchange currency contracts relating to intercompany management fee hedges |  | $ | (3.8 | ) |  | $ | (2.2 | ) |  | $ | 0.3 |  |  | Selling, general, and administrative expenses
The Company reports its derivatives at fair value as either assets or liabilities within its consolidated balance sheets. See Note 13, Fair Value Measurements, for information on derivative fair values and their consolidated balance sheet locations as of December 31, 2018 and 2017.

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

X
- 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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration