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Derivative Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Foreign Currency Contracts | As of September 30, 2022, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows:
(in millions) |  |  | Sell
Currency | Purchase |  | USD | Euro
USD | 13.5 |  |  | — |  | 11.8 |
Yen | 5,686.2 |  |  | 23.8 |  | 20.6 |
SGD | 68.7 |  |  | 33.7 |  | 15.6 |
Schedule of Effects of Derivative Instruments on Other Comprehensive Income ('OCI') and Earnings | The following table summarizes the effects of derivative instruments designated as fair value hedges on the condensed consolidated statements of income:
| Amount of Gain (Loss) Recognized in Income for the |  | Amount of Gain (Loss) Recognized in Income for the |  |
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  | Location on Statement of Income
($ in millions) | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Fair Value Hedges: |  |  |  |  |  |  |  |  |
Hedged item (intercompany loan) | $ | (14.1) |  |  | $ | (5.9) |  |  | $ | (35.4) |  |  | $ | (11.0) |  |  | Other (income) expense
Derivative designated as hedging instrument | 14.1 |  |  | 5.9 |  |  | 35.4 |  |  | 11.0 |  |  | Other (income) expense
Amount excluded from effectiveness testing | 2.2 |  |  | 0.9 |  |  | 4.4 |  |  | 2.1 |  |  | Other (income) expense
Total | $ | 2.2 |  |  | $ | 0.9 |  |  | $ | 4.4 |  |  | $ | 2.1 |  |  |
The following tables summarize the effects of derivative instruments designated as fair value, cash flow, and net investment hedges on other comprehensive income (“OCI”) and earnings, net of tax:
| Amount of Gain (Loss) Recognized in OCI for the |  | Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for the |  | Location of (Gain) Loss Reclassified from Accumulated OCI into Income
| Three Months Ended September 30, |  | Three Months Ended September 30, |
($ in millions) | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Fair Value Hedges |  |  |  |  |  |  |  |  |
Foreign currency hedge contracts | $ | (0.4) |  |  | $ | (0.2) |  |  | $ | 0.5 |  |  | $ | 0.1 |  |  | Other (income) expense
Total | $ | (0.4) |  |  | $ | (0.2) |  |  | $ | 0.5 |  |  | $ | 0.1 |  |  |
Cash Flow Hedges: |  |  |  |  |  |  |  |  |
Foreign currency hedge contracts | $ | 0.7 |  |  | $ | 0.1 |  |  | $ | (0.5) |  |  | $ | 0.1 |  |  | Net sales
Foreign currency hedge contracts | (1.5) |  |  | 1.4 |  |  | 1.0 |  |  | (0.3) |  |  | Cost of goods and services sold
Forward treasury locks | — |  |  | — |  |  | 0.1 |  |  | 0.1 |  |  | Interest expense
Total | $ | (0.8) |  |  | $ | 1.5 |  |  | $ | 0.6 |  |  | $ | (0.1) |  |  |
Net Investment Hedges: |  |  |  |  |  |  |  |  |
Cross-currency swap | $ | 4.3 |  |  | $ | 0.6 |  |  | $ | — |  |  | $ | — |  |  | Other (income) expense
Total | $ | 4.3 |  |  | $ | 0.6 |  |  | $ | — |  |  | $ | — |  |  |
| Amount of Gain (Loss) Recognized in OCI for the |  | Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for the |  | Location of (Gain) Loss Reclassified from Accumulated OCI into Income
| Nine Months Ended September 30, |  | Nine Months Ended September 30, |
($ in millions) | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Fair Value Hedges |  |  |  |  |  |  |  |  |
Foreign currency hedge contracts | $ | 0.3 |  |  | $ | (0.6) |  |  | $ | (0.7) |  |  | $ | 0.9 |  |  | Other (income) expense
Total | $ | 0.3 |  |  | $ | (0.6) |  |  | $ | (0.7) |  |  | $ | 0.9 |  |  |
Cash Flow Hedges: |  |  |  |  |  |  |  |  |
Foreign currency hedge contracts | $ | 1.1 |  |  | $ | (0.5) |  |  | $ | (1.1) |  |  | $ | 0.9 |  |  | Net sales
Foreign currency hedge contracts | (4.9) |  |  | (1.4) |  |  | 2.5 |  |  | 1.2 |  |  | Cost of goods and services sold
Forward treasury locks | — |  |  | — |  |  | 0.2 |  |  | 0.2 |  |  | Interest expense
Total | $ | (3.8) |  |  | $ | (1.9) |  |  | $ | 1.6 |  |  | $ | 2.3 |  |  |
Net Investment Hedges: |  |  |  |  |  |  |  |  |
Cross-currency swap | $ | 13.2 |  |  | $ | 6.0 |  |  | $ | — |  |  | $ | — |  |  | Other (income) expense
Total | $ | 13.2 |  |  | $ | 6.0 |  |  | $ | — |  |  | $ | — |  |  |
The following table summarizes the effects of derivative instruments designated as fair value, cash flow, and net investment hedges by line item in our condensed consolidated statements of income:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
($ in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Net sales | $ | (0.5) |  |  | $ | 0.1 |  |  | $ | (1.1) |  |  | $ | 0.9 |
Cost of goods and services sold | 1.0 |  |  | (0.3) |  |  | 2.5 |  |  | 1.2 |
Interest expense | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  | 0.2 |
Other (income) expense | 0.5 |  |  | 0.1 |  |  | (0.7) |  |  | 0.9 |
The following table summarizes the effects of derivative instruments not designated as hedges on the condensed consolidated statements of income:
| Amount of (Loss) Gain Recognized in Income for the |  | Amount of Gain (Loss) Recognized in Income for the |  |
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  | Location on Statement of Income
($ in millions) | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Commodity call options | $ | (1.5) |  |  | $ | 0.5 |  |  | $ | 1.6 |  |  | $ | 1.6 |  |  | Other (income) expense
Total | $ | (1.5) |  |  | $ | 0.5 |  |  | $ | 1.6 |  |  | $ | 1.6 |  |  |

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