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115
Consolidated Statements of Financial Position at its fair value, and gains and losses that were recorded in Accumulated other
comprehensive loss are recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the
derivative will be carried at its fair value on the Consolidated Statements of Financial Position, with changes in its fair value
recognized in current period earnings.
Fair Value Hedges
Net outstanding notional amount of derivative positions as of December 31, 2015 and 2014 is as follows. These positions were driven
by fair value hedges of recognized assets and liabilities primarily denominated in the currencies below:
December 31,
Long (Short) Positions by Currency (in USD)
2015
EUR/USD
$
298.5
EUR/GBP
(43.8)
GBP/USD
32.8
Other, net
(25.0)
Total
$
262.5
December 31,
Long (Short) Positions by Currency (in USD)
2014
EUR/USD
$
133.4
GBP/USD
66.0
EUR/GBP
(34.4)
Other, net
(17.9)
Total
$
147.1
As of December 31, 2015 and 2014, the Company had the following net derivative assets (liabilities) recorded at fair value in Prepaid
expenses and other current assets (Accrued liabilities) on the Consolidated Statements of Financial Position for its fair value hedges:
Net Asset Position
Net (Liability) Position
Foreign Exchange Contracts
2015
2014
2015
2014
Gross asset position
$
2.2
$
–
$
–
$
0.6
Gross (liability) position
–
–
(2.4)
(3.9)
Net asset (liability) position (1)
2.2
–
(2.4)
(3.3)
Gross amounts not offset (2)
–
–
–
–
Net amounts
$
2.2
$
–
$
(2.4)
$
(3.3)
(1) Amounts presented in the Consolidated Statements of Financial Position
(2) Amounts not offset in the Consolidated Statements of Financial Position
The Company had the following (gains) and losses related to derivative instruments qualifying and designated as hedging instruments
in fair value hedges and related hedged items recorded on the Consolidated Statements of Earnings:
Recorded in
Recorded in
Cost of revenue*
Other expense (income), net
Fair Value Hedging Relationships
2015
2014
2013
2015
2014
2013
Foreign Exchange Contracts
$
3.0
$
6.5
$
(2.8)
$
0.3
$
0.3
$
1.7
Underlying
2.6
(3.6)
15.2
1.5
(0.5)
(1.3)
Total
$
5.6
$
2.9
$
12.4
$
1.8
$
(0.2)
$
0.4
* Gains and losses recorded in Cost of revenue are included in Product on the Consolidated Statements of Earnings
Cash Flow Hedges
The Company’s cash flow hedging contracts are not subject to master netting agreements or other terms under U.S. GAAP that allow
net presentation in the Consolidated Statements of Financial Position. The net notional amounts as of December 31, 2015 of the
Company’s foreign exchange options designated as cash flow hedges of anticipated Euro and British pound denominated sales were
$616.0 million and $33.5 million, respectively. The Company had the following gross derivative assets (liabilities) recorded at fair