Derivatives and Hedging Activity (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments And Hedging Activities Disclosure Abstract

Summary of Notional and Fair Values of Derivative Instruments

The notional and fair values of derivatives designated as hedging instruments are as follows at September 30, 2020 and December 31, 2019 (in millions):

			Derivative Assets			Derivative Liabilities
	Notional		Balance Sheet	Fair		Balance Sheet	Fair
Instrument	Amount		Classification	Value		Classification	Value
At September 30, 2020
Interest rate contracts	$	550.0	Other current assets	$	—	Accrued compensation and other current liabilities	$	30.3
			Other noncurrent assets		—	Other noncurrent liabilities		47.5
Foreign exchange contracts (1)		56.3	Other current assets		2.8	Accrued compensation and other current liabilities		2.3
			Other noncurrent assets		3.9	Other noncurrent liabilities		2.6
Total	$	606.3		$	6.7		$	82.7
At December 31, 2019
Interest rate contracts	$	800.0	Other current assets	$	2.8	Accrued compensation and other current liabilities	$	25.0
			Other noncurrent assets		5.4	Other noncurrent liabilities		23.0
Foreign exchange contracts (1)		31.7	Other current assets		4.5	Accrued compensation and other current liabilities		1.8
			Other noncurrent assets		8.5	Other noncurrent liabilities		2.6
Total	$	831.7		$	21.2		$	52.4

(1)

Included within foreign exchange contracts at September 30, 2020 were $220.2 million of call options offset with $220.2 million of put options, and $10.4 million of buy forwards offset with $66.7 million of sell forwards. Included within foreign exchange contracts at December 31, 2019 were $342.0 million of call options offset with $342.0 million of put options, and $12.1 million of buy forwards offset with $43.8 million of sell forwards.

Summary of Amounts of Derivative Gains (Losses) Recognized In Accumulated Other Comprehensive Loss

The effect of cash flow hedge accounting on accumulated other comprehensive loss for the three and nine-month periods ended September 30, 2020 and 2019 were as follows (in millions):

							Amount of
				Amount of			Gain (Loss)
				Gain (Loss)			Recognized
	Amount of			Reclassified			in Earnings
	Gain (Loss)			from			Related to
	Recognized in			Accumulated			Amount
	Accumulated			Other			Excluded
	Other			Comprehensive			from
	Comprehensive			Loss into			Effectiveness			Statement of Earnings
Instrument	Loss (1)			Earnings			Testing			Classification
Three-month period ended September 30, 2020
Interest rate contracts	$	3.4		$	(0.3	)	$	—		Interest expense
Foreign exchange contracts		7.0			(0.4	)		(0.1	)	Commission revenue
					(0.4	)		0.4		Compensation expense
					(0.3	)		0.4		Operating expense
Total	$	10.4		$	(1.4	)	$	0.7
Three-month period ended September 30, 2019
Interest rate contracts	$	(28.0	)	$	(0.3	)	$	—		Interest expense
Foreign exchange contracts		(6.0	)		(0.2	)		(0.2	)	Commission revenue
					(0.4	)		0.3		Compensation expense
					(0.2	)		0.2		Operating expense
Total	$	(34.0	)	$	(1.1	)	$	0.3

Nine-month period ended September 30, 2020
Interest rate contracts	$	(104.7	)	$	(0.9	)	$	—		Interest expense
Foreign exchange contracts		(10.3	)		(0.9	)		(0.4	)	Commission revenue
					(1.2	)		1.0		Compensation expense
					(0.9	)		0.8		Operating expense
Total	$	(115.0	)	$	(3.9	)	$	1.4
Nine-month period ended September 30, 2019
Interest rate contracts	$	(74.7	)	$	(0.9	)	$	—		Interest expense
Foreign exchange contracts		(5.9	)		(0.4	)		(0.6	)	Commission revenue
					(1.0	)		1.0		Compensation expense
					(0.7	)		0.7		Operating expense
Total	$	(80.6	)	$	(3.0	)	$	1.1

(1)	For the three and nine-month periods ended September 30, 2020 and 2019, the amount excluded from the assessment of hedge effectiveness for our foreign exchange contracts recognized in accumulated other comprehensive loss was a loss of $0.4 million and $0.8 million, respectively.

We estimate that approximately $5.5 million of pretax loss currently included within accumulated other comprehensive loss will be reclassified into earnings in the next twelve months. During the nine months ended September 30, 2020, we settled approximately $66.0 million ($49.4 million net of tax) of interest rate contracts hedges with a notional value of $350.0 million that will be amortized into interest expense in future periods.