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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended
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Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Financial Instruments Used to Manage Currency Exchange Rate Risk and Interest Rate Risk | The Company uses derivative financial instruments to manage its currency exchange rate risk and its interest rate risk as summarized below. Notional amounts are stated in United States dollar equivalents at spot exchange rates at the respective dates. The Company does not enter into these arrangements for trading or speculation purposes.
| Notional Amount
| September 30, 2022 |  | December 31, 2021
| (in millions)
Foreign currency forward exchange contracts | $ | 1,439.9 |  |  | $ | 1,498.8 |
Cross currency swap contracts | 300.0 |  |  | 300.0 |
Schedule of Location and Fair Value Amounts of Derivative Instruments Reported in Consolidated Condensed Balance Sheets | The following table presents the location and fair value amounts of derivative instruments reported in the consolidated condensed balance sheets (in millions):
|  |  |  | Fair Value
Derivatives designated as hedging instruments |  | Balance Sheet Location |  | September 30, 2022 |  | December 31, 2021
Assets |  |  |  |  |  |
Foreign currency contracts |  | Other current assets |  | $ | 93.7 |  |  | $ | 36.2 |
Foreign currency contracts |  | Other assets |  | $ | 3.8 |  |  | $ | — |
Cross currency swap contracts |  | Other assets |  | $ | 59.3 |  |  | $ | 19.1 |
Liabilities |  |  |  |  |  |
Foreign currency contracts |  | Accounts payable and accrued liabilities |  | $ | 4.4 |  |  | $ | 3.9 |
Schedule of Effect of Master-Netting Agreements and Rights of Offset, Derivative Assets | The following table presents the effect of master-netting agreements and rights of offset on the consolidated condensed balance sheets (in millions):
|  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |  |
|  |  | Gross Amounts Offset in the Consolidated Balance Sheet |  |  |  |
|  |  | Net Amounts Presented in the Consolidated Balance Sheet |  |
September 30, 2022 | Gross Amounts |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 97.5 |  |  | $ | — |  |  | $ | 97.5 |  |  | $ | (4.4) |  |  | $ | — |  |  | $ | 93.1 |
Cross currency swap contracts | $ | 59.3 |  |  | $ | — |  |  | $ | 59.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 59.3 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 4.4 |  |  | $ | — |  |  | $ | 4.4 |  |  | $ | (4.4) |  |  | $ | — |  |  | $ | — |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 36.2 |  |  | $ | — |  |  | $ | 36.2 |  |  | $ | (2.8) |  |  | $ | — |  |  | $ | 33.4 |
Cross currency swap contracts | $ | 19.1 |  |  | $ | — |  |  | $ | 19.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 19.1 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 3.9 |  |  | $ | — |  |  | $ | 3.9 |  |  | $ | (2.8) |  |  | $ | — |  |  | $ | 1.1 |
Schedule of Effect of Master-Netting Agreements and Rights of Offset, Derivative Liabilities | The following table presents the effect of master-netting agreements and rights of offset on the consolidated condensed balance sheets (in millions):
|  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |  |
|  |  | Gross Amounts Offset in the Consolidated Balance Sheet |  |  |  |
|  |  | Net Amounts Presented in the Consolidated Balance Sheet |  |
September 30, 2022 | Gross Amounts |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 97.5 |  |  | $ | — |  |  | $ | 97.5 |  |  | $ | (4.4) |  |  | $ | — |  |  | $ | 93.1 |
Cross currency swap contracts | $ | 59.3 |  |  | $ | — |  |  | $ | 59.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 59.3 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 4.4 |  |  | $ | — |  |  | $ | 4.4 |  |  | $ | (4.4) |  |  | $ | — |  |  | $ | — |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 36.2 |  |  | $ | — |  |  | $ | 36.2 |  |  | $ | (2.8) |  |  | $ | — |  |  | $ | 33.4 |
Cross currency swap contracts | $ | 19.1 |  |  | $ | — |  |  | $ | 19.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 19.1 |
Derivative liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 3.9 |  |  | $ | — |  |  | $ | 3.9 |  |  | $ | (2.8) |  |  | $ | — |  |  | $ | 1.1 |
Schedule of Effect of Derivative Instruments on Consolidated Condensed Statements of Operations and Consolidated Condensed Statements of Comprehensive Income | The following tables present the effect of derivative and non-derivative hedging instruments on the consolidated condensed statements of operations and consolidated condensed statements of comprehensive income (in millions):
|  | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) |  |  |  | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|  | Three Months Ended September 30, |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income |  | Three Months Ended September 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Cash flow hedges |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  | $ | 55.5 |  |  | $ | 14.2 |  |  | Cost of sales |  | $ | 27.1 |  |  | $ | (10.8) |
|  |  |  |  |  | Selling, general, and administrative expenses |  | $ | — |  |  | $ | (0.3) |
|  | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) |  |  |  | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|  | Nine Months Ended September 30, |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income |  | Nine Months Ended September 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Cash flow hedges |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  | $ | 138.1 |  |  | $ | 38.5 |  |  | Cost of sales |  | $ | 50.7 |  |  | $ | (24.6) |
|  |  |  |  |  | Selling, general, and administrative expenses |  | $ | — |  |  | $ | (0.6) |
|  | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) |  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
|  | Three Months Ended September 30, |  | Location of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) |  | Three Months Ended September 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Net investment hedges |  |  |  |  |  |  |  |  |  |
Cross currency swap contracts |  | $ | 16.9 |  |  | $ | 6.5 |  |  | Interest (income) expense, net |  | $ | 1.8 |  |  | $ | 1.6 |
|  | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) |  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
|  | Nine Months Ended September 30, |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income |  | Nine Months Ended September 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Net investment hedges |  |  |  |  |  |  |  |  |  |
Cross currency swap contracts |  | $ | 40.2 |  |  | $ | 11.9 |  |  | Interest (income) expense, net |  | $ | 5.4 |  |  | $ | 4.7 |
The cross currency swap contracts have an expiration date of June 15, 2028. At maturity of the cross currency swap contracts, the Company will deliver the notional amount of €257.2 million and will receive $300.0 million from the counterparties. The Company will receive semi-annual interest payments from the counterparties based on a fixed interest rate until maturity of the agreements.
|  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative
|  |  |  | Three Months Ended September 30,
|  | Location of Gain or (Loss) Recognized in Income on Derivative |
|  | 2022 |  | 2021
Fair value hedges |  |  |  |  |  |
Foreign currency contracts |  | Other expense (income), net |  | $ | 4.5 |  |  | $ | 1.0 |
|  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative
|  |  |  | Nine Months Ended September 30,
|  | Location of Gain or (Loss) Recognized in Income on Derivative |
|  | 2022 |  | 2021
Fair value hedges |  |  |  |  |  |
Foreign currency contracts |  | Other expense (income), net |  | $ | 4.5 |  |  | $ | 8.8 |
|  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative
|  |  |  | Three Months Ended September 30,
|  | Location of Gain or (Loss) Recognized in Income on Derivative |
|  | 2022 |  | 2021
Derivatives not designated as hedging instruments |  |  |  |  |  |
Foreign currency contracts |  | Other expense (income), net |  | $ | 24.0 |  |  | $ | 5.7 |
|  |  |  | Amount of Gain or (Loss) Recognized in Income on Derivative
|  |  |  | Nine Months Ended September 30,
|  | Location of Gain or (Loss) Recognized in Income on Derivative |
|  | 2022 |  | 2021
Derivatives not designated as hedging instruments |  |  |  |  |  |
Foreign currency contracts |  | Other expense (income), net |  | $ | 66.1 |  |  | $ | 16.6 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables present the effect of fair value and cash flow hedge accounting on the consolidated condensed statements of operations (in millions):
| Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
| Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2022
| Cost of sales |  | Selling, general, and administrative expenses |  |  |  | Other Expense (Income), net |  | Cost of sales |  | Selling, general, and administrative expenses |  |  |  | Other Expense (Income), net
Total amounts of income and expense line items presented in the consolidated condensed statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | (253.8) |  |  | $ | (377.3) |  |  |  |  | $ | (2.0) |  |  | $ | (822.5) |  |  | $ | (1,156.6) |  |  |  |  | $ | (1.0) |
The effects of cash flow hedging: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedged items | $ | — |  |  | $ | — |  |  |  |  | $ | (4.1) |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (4.1) |
Derivatives designated as hedging instruments | $ | — |  |  | $ | — |  |  |  |  | $ | 4.1 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 4.1 |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | $ | — |  |  | $ | — |  |  |  |  | $ | 0.4 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 0.4 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated OCI into income | $ | 27.1 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 50.7 |  |  | $ | — |  |  |  |  | $ | — |
| Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
| Three Months Ended September 30, 2021 |  | Nine Months Ended September 30, 2021
| Cost of sales |  | Selling, general, and administrative expenses |  |  |  | Other Expense (Income), net |  | Cost of sales |  | Selling, general, and administrative expenses |  |  |  | Other Expense (Income), net
Total amounts of income and expense line items presented in the consolidated condensed statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | (311.7) |  |  | $ | (364.4) |  |  |  |  | $ | 1.4 |  |  | $ | (939.4) |  |  | $ | (1,069.7) |  |  |  |  | $ | 11.3 |
The effects of fair value and cash flow hedging: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedged items | $ | — |  |  | $ | — |  |  |  |  | $ | (0.2) |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (6.4) |
Derivatives designated as hedging instruments | $ | — |  |  | $ | — |  |  |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 6.4 |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | $ | — |  |  | $ | — |  |  |  |  | $ | 0.8 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 2.4 |
Gain (loss) on cash flow hedging relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated OCI into income | $ | (10.8) |  |  | $ | (0.3) |  |  |  |  | $ | — |  |  | $ | (24.6) |  |  | $ | (0.6) |  |  |  |  | $ | — |

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