Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.10.0.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Derivative Assets and Liabilities Measured at Fair Value

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 June 30, 2018 and December 31, 2017:

 

 

 

Balance Sheet Location

 

Significant Other Observable Inputs (Level 2) Fair Value as of June 30,

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

 

$

1.5

 

 

$

2.9

 

Derivatives not designated as hedging

    instruments:

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts

 

Prepaid expenses and other current assets

 

 

4.2

 

 

 

2.9

 

 

 

 

 

$

5.7

 

 

$

5.8

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

Derivatives designated as hedging

    instruments:

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts relating

    to inventory and intercompany

    management fee hedges

 

Other current liabilities

 

$

1.0

 

 

$

4.0

 

Derivatives not designated as hedging

    instruments:

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts

 

Other current liabilities

 

 

2.0

 

 

 

2.6

 

 

 

 

 

$

3.0

 

 

$

6.6

 

 
Schedule of Reconciliation of CVR Liability

The following is a reconciliation of the CVR liability reported in Other non-current liabilities within the Company’s condensed consolidated balance sheet as of June 30, 2018:

 

 

 

Contingent Value Right

 

 

 

(in millions)

 

Fair value as of December 31, 2017

 

$

6.9

 

Net unrealized loss(1)

 

 

16.0

 

Fair value as of June 30, 2018

 

$

22.9

 

 

(1)

Unrealized gains and losses related to the revaluation of the CVR are recorded in Other expense, net within the Company’s condensed consolidated statements of income.
Offsetting of Derivative 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 condensed consolidated balance sheets as of June 30, 2018 and December 31, 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)

 

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts

 

$

5.7

 

 

$

(2.5

)

 

$

3.2

 

Total

 

$

5.7

 

 

$

(2.5

)

 

$

3.2

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts

 

$

5.8

 

 

$

(4.3

)

 

$

1.5

 

Total

 

$

5.8

 

 

$

(4.3

)

 

$

1.5

 

 
Offsetting of Derivative Liabilities

 

 

 

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)

 

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts

 

$

3.0

 

 

$

(2.5

)

 

$

0.5

 

Total

 

$

3.0

 

 

$

(2.5

)

 

$

0.5

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts

 

$

6.6

 

 

$

(4.3

)

 

$

2.3

 

Total

 

$

6.6

 

 

$

(4.3

)

 

$

2.3