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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Accumulated Other Comprehensive Loss and Net Income Related to Derivatives

The following tables summarize the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and net income during the three and six months ended June 30, 2023 and 2022 (in millions):

									Recognized in Net Income
Three Months Ended June 30,			Loss Recognized in Accumulated Other Comprehensive Loss						Classification of Loss						Loss Reclassified from Accumulated Other Comprehensive Loss into Income						Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Losses
2023
Foreign currency contracts(1)			$	(5.0)					Cost of goods sold						$	(0.8)					$	2,817.0
Commodity contracts(2)			(0.7)						Cost of goods sold						(0.4)						$	2,817.0
Total			$	(5.7)											$	(1.2)
2022
Foreign currency contracts			$	(2.7)					Cost of goods sold						$	(1.9)					$	2,254.7
Commodity contracts			(4.5)						Cost of goods sold						(2.1)						$	2,254.7
Total			$	(7.2)											$	(4.0)

									Recognized in Net Income
Six Months Ended June 30,			Gain (Loss) Recognized in Accumulated Other Comprehensive Loss						Classification of Gain (Loss)						Loss Reclassified from Accumulated Other Comprehensive Loss into Income						Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Losses
2023
Foreign currency contracts(1)			$	(6.9)					Cost of goods sold						$	(2.6)					$	5,295.6
Commodity contracts(2)			0.2						Cost of goods sold						(0.1)						$	5,295.6
Total			$	(6.7)											$	(2.7)
2022
Foreign currency contracts			$	(6.5)					Cost of goods sold						(2.0)						$	4,309.1
Commodity contracts			(3.1)						Cost of goods sold						(1.1)						$	4,309.1
Total			$	(9.6)											$	(3.1)

____________________________________

(1) The outstanding contracts as of June 30, 2023 range in maturity through December 2023.

(2) The outstanding contracts as of June 30, 2023 range in maturity through October 2023.

    The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended June 30, 2023 (in millions):

						Before-Tax Amount						Income Tax						After-Tax Amount
Accumulated derivative net losses as of March 31, 2023						$	(0.6)					$	(0.2)					$	(0.4)
Net changes in fair value of derivatives						(7.9)						(2.2)						(5.7)
Net losses reclassified from accumulated other comprehensive loss into income						1.8						0.6						1.2
Accumulated derivative net losses as of June 30, 2023						$	(6.7)					$	(1.8)					$	(4.9)

    The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the six months ended June 30, 2023 (in millions):

						Before-Tax Amount						Income Tax						After-Tax Amount
Accumulated derivative net losses as of December 31, 2022						$	(1.0)					$	(0.1)					$	(0.9)
Net changes in fair value of derivatives						(9.3)						(2.6)						(6.7)
Net losses reclassified from accumulated other comprehensive loss into income						3.6						0.9						2.7
Accumulated derivative net losses as of June 30, 2023						$	(6.7)					$	(1.8)					$	(4.9)

Schedule of Derivative Instruments

The following table summarizes the notional values of the instruments designated as a net investment hedge (in millions):

			Notional Amount as of
			June 30, 2023						December 31, 2022
Cross currency swap contract			$	300.0					$	300.0
Foreign currency denominated debt			163.7						—

    The following table summarizes the changes in the fair value of the cross currency swap contract designated as a net investment hedge during the three and six months ended June 30, 2023 and 2022 (in millions):

			Gain (Loss) Recognized in Accumulated Other Comprehensive Loss for the Three Months Ended																		Gain (Loss) Recognized in Accumulated Other Comprehensive Loss for the Six Months Ended
			Before-Tax Amount						Income Tax						After-Tax Amount						Before-Tax Amount						Income Tax						After-Tax Amount
June 30, 2023			$	(5.7)					$	1.5					$	(4.2)					$	(6.7)					$	1.7					$	(5.0)
June 30, 2022			16.6						(4.3)						12.3						20.8						(5.4)						15.4

The following table summarizes the changes in the fair value of foreign currency denominated debt designated as a net investment hedge during the three and six months ended June 30, 2023 and 2022 (in millions):

			Gain Recognized in Accumulated Other Comprehensive Loss for the Three Months Ended																		Gain Recognized in Accumulated Other Comprehensive Loss for the Six Months Ended
			Before-Tax Amount						Income Tax						After-Tax Amount						Before-Tax Amount						Income Tax						After-Tax Amount
June 30, 2023			$	0.4					$	(0.3)					$	0.1					$	1.3					$	(0.3)					$	1.0
June 30, 2022			—						—						—						—						—						—

Schedule of Derivatives Not Designated as Hedging Instrument

The following table summarizes the impact that changes in the fair value of derivatives not designated as hedging instruments had on net income (in millions):

									Gain Recognized in Net Income for the Three Months Ended												Gain (Loss) Recognized in Net Income for the Six Months Ended
			Classification of Gain (Loss)						June 30, 2023						June 30, 2022						June 30, 2023						June 30, 2022
Foreign currency contracts			Other expense, net						$	37.9					$	0.4					$	49.1					$	(13.4)

Fair Value of Derivative Instruments

The table below sets forth the fair value of derivative instruments as of June 30, 2023 (in millions):

			Asset Derivatives as of June 30, 2023												Liability Derivatives as of June 30, 2023
			Balance Sheet Location						Fair Value						Balance Sheet Location						Fair Value
Derivative instruments designated as hedging instruments:
Foreign currency contracts			Other current assets						$	2.9					Other current liabilities						$	8.3
Commodity contracts			Other current assets						—						Other current liabilities						0.4
Cross currency swap contract			Other noncurrent assets						26.3						Other noncurrent liabilities						—
Derivative instruments not designated as hedging instruments:
Foreign currency contracts(1)			Other current assets						10.4						Other current liabilities						14.9
Total derivative instruments									$	39.6											$	23.6

__________________________________

(1) The outstanding contracts as of June 30, 2023 range in maturity through September 2023.

    The table below sets forth the fair value of derivative instruments as of December 31, 2022 (in millions):

			Asset Derivatives as of December 31, 2022												Liability Derivatives as of December 31, 2022
			Balance Sheet Location						Fair Value						Balance Sheet Location						Fair Value
Derivative instruments designated as hedging instruments:
Foreign currency contracts			Other current assets						$	1.3					Other current liabilities						$	1.3
Commodity contracts			Other current assets						—						Other current liabilities						—
Cross currency swap contract			Other noncurrent assets						33.0						Other noncurrent liabilities						—
Derivative instruments not designated as hedging instruments:
Foreign currency contracts(1)			Other current assets						6.6						Other current liabilities						39.1
Total derivative instruments									$	40.9											$	40.4

___________________________________

(1) The outstanding contracts as of December 31, 2022 range in maturity through March 2023.

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 are summarized below (in millions):

			As of June 30, 2023
			Level 1						Level 2						Level 3						Total
Derivative assets			$	—					$	39.6					$	—					$	39.6
Derivative liabilities			—						23.6						—						23.6

			As of December 31, 2022
			Level 1						Level 2						Level 3						Total
Derivative assets			$	—					$	40.9					$	—					$	40.9
Derivative liabilities			—						40.4						—						40.4

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