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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Risk To manage interest rate risk, the Company enters into interest rate swap contracts to adjust the amount of total debt that is subject to variable interest rates. Such contracts effectively fix the borrowing rates on floating rate debt to limit the exposure against the risk of rising interest rates. The Company does not enter into interest rate swap contracts for speculative or trading purposes and it has only entered into interest rate swap contracts with financial institutions that it believes are creditworthy counterparties. The Company monitors the financial institutions that are counterparties to its interest rate swap contracts and to the extent possible diversifies its swap contracts among various counterparties to mitigate exposure to any single financial institution. The Company's risk management objective and strategy with respect to interest rate swap contracts is to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows relating to interest payments on a portion of its outstanding debt. The Company is meeting its objective by hedging the risk of changes in its cash flows (interest payments) attributable to changes in the LIBOR index rate, the designated benchmark interest rate being hedged (the "hedged risk"), on an amount of the Company's debt principal equal to the then-outstanding swap notional. The forecasted interest payments are deemed to be probable of occurring. The Company assesses, both at the hedge's inception and on an ongoing basis, hedge effectiveness based on the overall changes in the fair value of the interest rate swap contracts. Hedge effectiveness of the interest rate swap contracts is based on a hypothetical derivative methodology. Any ineffective portion of an interest rate swap contract which is designated as a hedging instrument is recorded in current-period earnings. Changes in fair value of interest rate swap contracts not designated as hedging instruments are also recognized in earnings and included in interest expense. As of December 31, 2017, the Company had interest rate swap contracts outstanding with notional amounts aggregating $200.0 million that are not designated as hedging instruments. The Company's outstanding interest rate swap contracts mature in October 2018. Foreign Currency Exchange Rate Risk We are exposed to foreign currency risk to the extent that we enter into transactions denominated in currencies other than our subsidiaries' respective functional currencies (non-functional currency risk), such as affiliation agreements, programming contracts, certain trade receivables and accounts payable (including intercompany amounts) that are denominated in a currency other than the applicable functional currency. To manage foreign currency exchange rate risk, the Company may enter into foreign currency contracts from time to time with financial institutions to limit the exposure to fluctuations in foreign currency exchange rates. The Company does not enter into foreign currency contracts for speculative or trading purposes. In certain circumstances, the Company enters into contracts that are settled in currencies other than the functional or local currencies of the contracting parties. Accordingly, these contracts consist of the underlying operational contract and an embedded foreign currency derivative element. Hedge accounting is not applied to the embedded foreign currency derivative element and changes in their fair values are included in miscellaneous, net in the consolidated statement of income. Other Derivatives The RLJE Warrants held by the Company meet the definition of a derivative and are included in other assets in the consolidated balance sheet. In addition, the interest on the RLJE Term Loans to be paid in shares of RLJE common stock is an embedded derivative. Both the RLJE Warrants and the embedded derivative for the future interest to be paid in shares of RLJE common stock are remeasured at the end of each period with changes in fair value recorded in the consolidated statement of income. For the year ended December 31, 2017, the Company recorded a gain of $24.2 million related to these derivatives, which is included in miscellaneous, net in the consolidated statements of income. The fair values of the Company's derivative financial instruments included in the consolidated balance sheets are as follows:
(In thousands) | Balance Sheet Location |  | December 31,
|  | 2017 |  | 2016
Derivatives designated as hedging instruments: |  |  |  |  |
Assets: |  |  |  |  |
Interest rate swap contracts | Other assets |  | $ | — |  |  | $ | 1,471 |
Derivatives not designated as hedging instruments: |  |  |  |  |
Assets: |  |  |  |  |
Foreign currency derivatives | Prepaid expenses and other current assets |  | 943 |  |  | 1,684 |
Foreign currency derivatives | Other assets |  | 2,858 |  |  | 4,412 |
Interest rate swap contracts | Other assets |  | 1,444 |  |  | — |
Other derivatives | Other assets |  | 37,065 |  |  | 12,308 |
Liabilities: |  |  |  |  |
Interest rate swap contracts | Accrued liabilities |  | — |  |  | 762 |
Foreign currency derivatives | Accrued liabilities |  | 1,223 |  |  | 952 |
Foreign currency derivatives | Other liabilities |  | 3,252 |  |  | 2,195 |
The amount of the gains and losses related to the Company's derivative financial instruments designated as hedging instruments are as follows:
(In thousands) | Gain or (Loss) on Derivatives Recognized in OCI |  | Location of Gain or (Loss) in Earnings |  | Gain or (Loss) Reclassified from Accumulated OCI into Earnings (a)
Years Ended December 31, |  |  |  | Years Ended December 31,
2017 |  | 2016 |  |  |  | 2017 |  | 2016
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |  |
Interest rate swap contracts | $ | 565 |  |  | $ | (565 | ) |  | Interest expense |  | $ | 600 |  |  | $ | (587 | )
(a) | There were no gains or losses recognized in earnings related to any ineffective portion of the hedging relationship or related to any amount excluded from the assessment of hedge effectiveness for the years ended December 31, 2017 and 2016.
The amount of the gains and losses related to the Company's derivative financial instruments not designated as hedging instruments are as follows:
(In thousands) | Location of Gain (Loss) Recognized in Earnings on Derivatives |  | Amount of Gain (Loss) Recognized in Earnings on Derivatives
|  | Years Ended December 31,
|  | 2017 |  | 2016
Derivatives not designated as hedging relationships: |  |  |  |  |
Interest rate swap contracts | Interest expense |  | $ | 3 |  |  | $ | (238 | )
Foreign currency derivatives | Miscellaneous, net |  | (2,958 | ) |  | 3,234 |
Other derivatives | Miscellaneous, net |  | 24,223 |  |  | (892 | )
Total |  |  | $ | 21,268 |  |  | $ | 2,104 |

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- References No definition available. + Details
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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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