Annual report pursuant to Section 13 and 15(d)

Derivative Instruments and Hedging Activities (Tables)

v2.4.1.9
Derivative Instruments and Hedging Activities (Tables)
12 Months Ended
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Foreign Currency Forward Contracts Outstanding

The table below describes all foreign currency forward contracts that were outstanding as of December 31, 2014 and December 31, 2013:

 

Foreign Currency

   Average
Contract Rate
     Original
Notional Amount
     Fair Value
Gain (Loss)
 
            (In millions)      (In millions)  

At December 31, 2014

        

Buy Chinese yuan dollar sell Euro

     7.72       $ 8.0       $ 0.2   

Buy Euro sell Australian dollar

     1.51         4.9         (0.1

Buy Euro sell Chilean peso

     745.65         1.1           

Buy Euro sell Indonesian rupiah

     15,302.91         1.8           

Buy Euro sell Mexican peso

     18.04         153.3         (0.4

Buy Euro sell Malaysian ringgit

     4.31         0.7           

Buy Euro sell Peruvian nuevo sol

     3.66         4.0           

Buy Euro sell Philippine peso

     55.39         1.7           

Buy Euro sell Russian ruble

     69.82         2.7         0.1   

Buy Euro sell U.S. dollar

     1.23         105.0         (2.0

Buy British pound sell Euro

     0.80         2.3           

Buy Russian ruble sell Euro

     49.80         2.8         (1.0

Buy U.S. dollar sell Brazilian real

     2.54         10.4         0.9   

Buy U.S. dollar sell Colombian peso

     2,084.12         4.8         0.6   

Buy U.S. dollar sell Euro

     1.32         132.6         10.7   

Buy U.S. dollar sell South Korean won

     1,081.96         7.7         0.1   
     

 

 

    

 

 

 

Total forward contracts

      $ 443.8       $ 9.1   
     

 

 

    

 

 

 

 

Foreign Currency

   Average
Contract Rate
     Original
Notional Amount
     Fair Value
Gain (Loss)
 
            (In millions)      (In millions)  

At December 31, 2013

        

Buy Australian dollar sell Euro

     1.55       $ 2.7       $   

Buy Euro sell Australian dollar

     1.52         4.5         0.1   

Buy Euro sell Chilean peso

     727.40         1.1           

Buy Euro sell British pound

     0.83         2.5           

Buy Euro sell Indonesian rupiah

     16,915.00         0.7           

Buy Euro sell Mexican peso

     17.51         150.3         4.9   

Buy Euro sell Russian ruble

     45.05         3.0           

Buy Euro sell Singapore dollar

     1.74         3.0           

Buy Euro sell U.S. dollar

     1.37         161.3           

Buy British pound sell Euro

     1.01         4.9         0.1   

Buy Japanese yen sell U.S. dollar

     104.71         2.9           

Buy Malaysian ringgit sell U.S. dollar

     3.30         5.3           

Buy Singapore dollar sell Euro

     1.71         2.0           

Buy New Taiwan dollar sell U.S. dollar

     29.54         14.9         (0.1

Buy U.S. dollar sell Brazilian real

     2.35         12.8         0.6   

Buy U.S. dollar sell Euro

     1.34         171.8         (4.2

Buy U.S. dollar sell South Korean won

     1,112.65         50.0         1.5   
     

 

 

    

 

 

 

Total forward contracts

      $ 593.7       $ 2.9   
     

 

 

    

 

 

 
Gains (Losses) Relating to Derivative Instruments Recorded in Other Comprehensive Income (Loss)

The following table summarizes gains (losses) relating to derivative instruments recorded in other comprehensive income (loss) during the years ended December 31, 2014, 2013, and 2012:

 

 

     Amount of Gain (Loss) Recognized
in Other Comprehensive Income (Loss)
For the Year Ended
 
     December 31,
2014
     December 31,
2013
     December 31,
2012
 
     (In millions)  

Derivatives designated as hedging instruments:

        

Foreign exchange currency contracts relating to inventory and intercompany management fee hedges

   $ 16.8       $ 3.5       $ (3.3

Interest rate swaps

                   $ (0.6
Gains (Losses) Relating to Derivative Instruments Recorded to Income

The following table summarizes gains (losses) relating to derivative instruments recorded to income during the years ended December 31, 2014, 2013, and 2012:

 

     Amount of Gain (Loss)
Recognized in Income
For the Year Ended
    Location of Gain (Loss)
Recognized in Income
     December 31,
2014
     December 31,
2013
     December 31,
2012
   
     (In millions)      

Derivatives designated as hedging instruments:

          

Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges(1)

   $ (4.6    $ (5.2    $ (1.8   Selling, general and
administrative expenses

Derivatives not designated as hedging instruments:

          

Foreign exchange currency contracts

   $ (26.2    $ 6.4       $ (10.0   Selling, general and
administrative expenses

 

(1) For foreign exchange contracts designated as hedging instruments, the amounts recognized in income (loss) primarily represent the amounts excluded from the assessment of hedge effectiveness. There were no material ineffective amounts reported for derivatives designated as hedging instruments.
Gains (Losses) Relating to Derivative Instruments Reclassified from Accumulated Other Comprehensive Loss into Income Effective Portion

The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the years ended December 31, 2014, 2013, and 2012:

 

     Amount of Gain (Loss) Reclassified
from Accumulated Other
Comprehensive Loss into Income
    Location of Gain
(Loss) Reclassified
from Accumulated  Other
Comprehensive Loss into
Income (effective portion)
   For the Year Ended    
   December 31,
2014
     December 31,
2013
    December 31,
2012
   
     (In millions)      

Derivatives designated as hedging instruments:

         

Foreign exchange currency contracts relating to inventory hedges

   $ 4.0       $ (4.1   $ 0.1      Cost of sales

Foreign exchange currency contracts relating to intercompany management fee hedges

           $ (0.7   $ 4.5      Selling, general
and administrative
expenses

Interest rate contracts

           $ (2.0   $ (3.6   Interest expense, net