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SEC Filings

10-Q
IHS MARKIT LTD. filed this Form 10-Q on 06/26/2018
Entire Document
 

Because the terms of these swaps and the variable rate debt (as amended or extended over time) coincide, we do not expect any ineffectiveness. We have designated and accounted for these instruments as cash flow hedges, with changes in fair value being deferred in AOCI in our consolidated balance sheets.

Foreign Currency Forwards

To mitigate foreign currency exposure, we utilize short-term foreign currency forward contracts that manage market risks associated with fluctuations in balances that are denominated in currencies other than the local functional currency. We account for these forward contracts at fair value and recognize the associated realized and unrealized gains and losses in other expense, net, since we have not designated these contracts as hedges for accounting purposes. The notional amount of these outstanding foreign currency forward contracts was $294.1 million and $261.3 million as of May 31, 2018 and November 30, 2017, respectively.

Fair Value of Derivatives

Since our derivative instruments are not listed on an exchange, we have evaluated fair value by reference to similar transactions in active markets; consequently, we have classified all of our derivative instruments within Level 2 of the fair value measurement hierarchy. The following table shows the classification, location, and fair value of our derivative instruments as of May 31, 2018 and November 30, 2017 (in millions):

 
 
Fair Value of Derivative Instruments
 
Location on consolidated balance sheets
 
 
May 31, 2018
 
November 30, 2017
 
Assets:
 
 
 
 
 
 
Derivatives not designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
$
1.0

 
$
2.8

 
Other current assets
Total
 
$
1.0

 
$
2.8

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Derivatives designated as accounting hedges:
 
 
 
 
 
 
Interest rate swaps
 
$
1.8

 
$
8.9

 
Other liabilities
Derivatives not designated as accounting hedges:
 
 
 
 
 
 
Foreign currency forwards
 
1.8

 
1.7

 
Other accrued expenses
Total
 
$
3.6

 
$
10.6

 
 

The net loss (gain) on foreign currency forwards that are not designated as hedging instruments for the three and six months ended May 31, 2018 and the three and six months ended May 31, 2017, respectively, was as follows (in millions):

 
 
Amount of loss (gain) recognized in the consolidated statements of operations
 
 
 
 
Three months ended May 31,
 
Six months ended May 31,
 
Location on consolidated statements of operations
 
 
2018
 
2017
 
2018
 
2017
 
Foreign currency forwards
 
$
5.7

 
$
(9.7
)
 
$
3.8

 
$
(6.1
)
 
Other expense, net


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