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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended
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Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES 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
| As of December 31,
| 2024 |  | 2023
| (in millions)
Foreign currency forward exchange contracts | $ | 1,926.9 |  |  | $ | 1,460.3 |
Cross currency swap contracts | 300.0 |  |  | 300.0 |
The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets (in millions):
|  |  | Fair Value
|  |  | As of December 31,
| Balance Sheet Location |  | 2024 |  | 2023
Derivatives designated as hedging instruments |  |  |  |  |
Assets |  |  |  |  |
Foreign currency contracts | Other current assets |  | $ | 47.4 |  |  | $ | 16.1 |
Cross currency swap contracts | Other assets |  | $ | 34.7 |  |  | $ | 23.4 |
Liabilities |  |  |  |  |
Foreign currency contracts | Accrued and other liabilities |  | $ | 6.4 |  |  | $ | 15.2 |
Derivatives not designated as hedging instruments |  |  |  |  |
Liabilities |  |  |  |  |
Foreign currency contracts | Accrued and other liabilities |  | $ | 1.8 |  |  | $ | — |
The following table presents the effect of master-netting agreements and rights of offset on the consolidated 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 |  |
December 31, 2024 | Gross Amounts |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivative Assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 47.4 |  |  | $ | — |  |  | $ | 47.4 |  |  | $ | (5.4) |  |  | $ | — |  |  | $ | 42.0 |
Cross currency swap contracts | $ | 34.7 |  |  | $ | — |  |  | $ | 34.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 34.7 |
Derivative Liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 8.2 |  |  | $ | — |  |  | $ | 8.2 |  |  | $ | (5.4) |  |  | $ | — |  |  | $ | 2.8 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Derivative Assets |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 16.1 |  |  | $ | — |  |  | $ | 16.1 |  |  | $ | (9.4) |  |  | $ | — |  |  | $ | 6.7 |
Cross currency swap contracts | $ | 23.4 |  |  | $ | — |  |  | $ | 23.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 23.4 |
Derivative Liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 15.2 |  |  | $ | — |  |  | $ | 15.2 |  |  | $ | (9.4) |  |  | $ | — |  |  | $ | 5.8 |
The following table presents the effect of derivative and non-derivative hedging instruments on the consolidated statements of operations and consolidated statements of comprehensive income:
|  | Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)
|  | 2024 |  | 2023
Cash flow hedges |  |  |  |
Foreign currency contracts |  | $ | 83.8 |  |  | $ | 29.2 |
Net investment hedges |  |  |  |
Cross-currency swap contracts |  | $ | 11.3 |  |  | $ | (17.3) |
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 receives semi-annual interest payments from the counterparties based on a fixed interest rate until maturity of the agreements. The following tables present the effect of fair value and cash flow hedge accounting on the consolidated statements of operations:
| Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
| Year Ended December 31, 2024
| Cost of sales |  |  |  | Interest income, net |  | Other non-operating income, net
Total amounts presented in the consolidated statements of operations | $ | (1,117.5) |  |  |  |  | $ | (19.8) |  |  | $ | 68.9 |
The effects of fair value hedges: |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |
Hedged items | — |  |  |  |  | — |  |  | (4.0) |
Derivatives designated as hedging instruments | — |  |  |  |  | — |  |  | 4.0 |
Amount excluded from effectiveness testing (amortized) | — |  |  |  |  | — |  |  | 0.8 |
The effects of cash flow hedges: |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated other comprehensive loss into income | 35.8 |  |  |  |  | — |  |  | — |
The effects of net investment hedges: |  |  |  |  |  |  |
Cross currency swap contracts |  |  |  |  |  |  |
Amount excluded from effectiveness testing | — |  |  |  |  | 7.0 |  |  | — |
The effects of non-designated hedges: |  |  |  |  |  |  |
Foreign currency contracts: | — |  |  |  |  | — |  |  | 22.4 |
| Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships
| Year Ended December 31, 2023
| Cost of sales |  |  |  | Interest income, net |  | Other non-operating income, net
Total amounts presented in the consolidated statements of operations | $ | (978.4) |  |  |  |  | $ | (17.6) |  |  | $ | 13.9 |
The effects of fair value hedges: |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |
Hedged items | — |  |  |  |  | — |  |  | (9.2) |
Derivatives designated as hedging instruments | — |  |  |  |  | — |  |  | 9.2 |
Amount excluded from effectiveness testing (amortized) | — |  |  |  |  | — |  |  | 4.7 |
The effects of cash flow hedges: |  |  |  |  |  |  |
Foreign currency contracts: |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated other comprehensive loss into income | 58.9 |  |  |  |  | — |  |  | — |
The effects of net investment hedges: |  |  |  |  |  |  |
Cross currency swap contracts |  |  |  |  |  |  |
Amount excluded from effectiveness testing | — |  |  |  |  | 6.9 |  |  | — |
The effects of non-designated hedges: |  |  |  |  |  |  |
Foreign currency contracts: | — |  |  |  |  | — |  |  | 7.4 |
The Company expects that during 2025 it will reclassify to earnings a $10.7 million gain currently recorded in Accumulated Other Comprehensive Loss. For the years ended December 31, 2024, 2023, and 2022, the Company did not record any gains or losses due to hedge ineffectiveness.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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