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Derivatives and Hedging Activity
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Activity Derivatives and Hedging Activity
We are exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, we enter into various derivative instruments that reduce these risks by creating offsetting exposures. We generally do not enter into derivative transactions for trading or speculative purposes.
Foreign Exchange Risk Management
We are exposed to foreign exchange risk when we earn revenues, pay expenses, or enter into monetary intercompany transfers denominated in a currency that differs from our functional currency, or other transactions that are denominated in a currency other than our functional currency. We use foreign exchange derivatives, typically forward contracts and options, to reduce our overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than three years.
Interest Rate Risk Management
We enter into various long-term debt agreements. We use interest rate derivatives, typically swaps, to reduce our exposure to the effects of interest rate fluctuations on the forecasted interest rates for up to three years into the future.
We have not received or pledged any collateral related to derivative arrangements at June 30, 2025.
The notional and fair values of derivatives designated as hedging instruments are as follows at June 30, 2025 and December 31, 2024 (in millions):
Derivative AssetsDerivative Liabilities
InstrumentNotional
Amount		Balance Sheet
Classification		Fair
Value		Balance Sheet
Classification		Fair
Value
At June 30, 2025
Interest rate contracts$1,500.0 Other current assets$2.7 Accrued compensation and other current liabilities$16.8 
Other noncurrent assets— Other noncurrent liabilities— 
Foreign exchange contracts (1)8.0 Other current assets23.9 Accrued compensation and other current liabilities0.2 
Other noncurrent assets14.1 Other noncurrent liabilities0.8 
Total$1,508.0 $40.7 $17.8 
At December 31, 2024
Interest rate contracts$— Other current assets$— Accrued compensation and other current liabilities$— 
Other noncurrent assets— Other noncurrent liabilities— 
Foreign exchange contracts (1)24.4 Other current assets6.2 Accrued compensation and other current liabilities2.4 
Other noncurrent assets2.6 Other noncurrent liabilities2.9 
Total$24.4 $8.8 $5.3 
(1)Included within foreign exchange contracts at June 30, 2025 were $622.5 million of call options, offset with $622.5 million of put options, and $0.2 million of buy forwards, offset with $8.2 million of sell forwards. Included within foreign exchange contracts at December 31, 2024 were $595.4 million of call options, offset with $595.4 million of put options, and $1.2 million of buy forwards, offset with $25.6 million of sell forwards.
The effect of cash flow hedge accounting on accumulated other comprehensive loss for the six-month periods ended June 30, 2025 and 2024 was as follows (in millions):
InstrumentAmount of
Gain (Loss)
Recognized in
Accumulated
Other
Comprehensive
Loss (1)		Amount of
Gain (Loss)
Reclassified
from
Accumulated
Other
Comprehensive
Loss into
Earnings		Amount of
Gain
Recognized
in Earnings
Related to
Amount
Excluded
from
Effectiveness
Testing		Statement of Earnings
Classification
Three-month period ended June 30, 2025
Interest rate contracts$(8.9)$(0.3)$— Interest expense
Foreign exchange contracts17.2 (4.8)— Commission revenue
(0.5)— Compensation expense
(0.3)0.1 Operating expense
Total$8.3 $(5.9)$0.1 
Three-month period ended June 30, 2024
Interest rate contracts$(3.6)$(0.3)$— Interest expense
Foreign exchange contracts(0.4)(1.0)— Commission revenue
(0.4)0.2 Compensation expense
(0.4)0.2 Operating expense
Total$(4.0)$(2.1)$0.4 
Six-month period ended June 30, 2025
Interest rate contracts$(21.6)$(0.6)$— Interest expense
Foreign exchange contracts27.9 (5.2)— Commission revenue
(1.1)0.1 Compensation expense
(0.7)0.1 Operating expense
Total$6.3 $(7.6)$0.2 
Six-month period ended June 30, 2024
Interest rate contracts$(2.9)$(0.6)$— Interest expense
Foreign exchange contracts(3.8)(0.8)— Commission revenue
(0.9)0.5 Compensation expense
(0.7)0.4 Operating expense
Total$(6.7)$(3.0)$0.9 
(1)For the three and six-month periods ended June 30, 2025, the amount excluded from the assessment of hedge effectiveness for our foreign exchange contracts recognized in accumulated other comprehensive loss was a loss of $0.1 million and $0.2 million, respectively. For the three and six-month periods ended June 30, 2024, the amount excluded from the assessment of hedge effectiveness for our foreign exchange contracts recognized in accumulated other comprehensive loss was a loss of $0.1 million and a gain of $0.2 million, respectively.
We estimate that approximately $37.1 million of pretax gain currently included within accumulated other comprehensive income will be reclassified into earnings in the next twelve months.