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Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended
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Sep. 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 nine months ended September 30, 2023 and 2022 (in millions):
|  |  | Recognized in Net Income
Three Months Ended September 30, | Loss Recognized in Accumulated Other Comprehensive Loss |  | Classification of Gain (Loss) |  | Gain (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) | $ | (1.7) |  |  | Cost of goods sold |  | $ | (2.5) |  |  | $ | 2,521.5 |
Commodity contracts(2) | (0.1) |  |  | Cost of goods sold |  | 0.2 |  |  | $ | 2,521.5 |
Total | $ | (1.8) |  |  |  |  | $ | (2.3) |  |  |
2022 |  |  |  |  |  |  |
Foreign currency contracts | $ | (3.4) |  |  | Cost of goods sold |  | $ | (4.3) |  |  | $ | 2,382.7 |
Commodity contracts | (0.4) |  |  | Cost of goods sold |  | (0.8) |  |  | $ | 2,382.7 |
Total | $ | (3.8) |  |  |  |  | $ | (5.1) |  |  |
|  |  | Recognized in Net Income
Nine Months Ended September 30, | Gain (Loss) Recognized in Accumulated Other Comprehensive Loss |  | Classification of Gain (Loss) |  | Gain (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) | $ | (8.6) |  |  | Cost of goods sold |  | $ | (5.1) |  |  | $ | 7,817.1 |
Commodity contracts(2) | 0.1 |  |  | Cost of goods sold |  | 0.1 |  |  | $ | 7,817.1 |
Total | $ | (8.5) |  |  |  |  | $ | (5.0) |  |  |
2022 |  |  |  |  |  |  |
Foreign currency contracts | $ | (9.9) |  |  | Cost of goods sold |  | (6.3) |  |  | $ | 6,691.8 |
Commodity contracts | (3.5) |  |  | Cost of goods sold |  | (1.9) |  |  | $ | 6,691.8 |
Total | $ | (13.4) |  |  |  |  | $ | (8.2) |  |  |
____________________________________ (1) The outstanding contracts as of September 30, 2023 range in maturity through December 2023. (2) The outstanding contracts as of September 30, 2023 range in maturity through November 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 September 30, 2023 (in millions):
|  | Before-Tax Amount |  | Income Tax |  | After-Tax Amount
Accumulated derivative net losses as of June 30, 2023 |  | $ | (6.7) |  |  | $ | (1.8) |  |  | $ | (4.9) |
Net changes in fair value of derivatives |  | (2.0) |  |  | (0.2) |  |  | (1.8) |
Net losses reclassified from accumulated other comprehensive loss into income |  | 2.8 |  |  | 0.5 |  |  | 2.3 |
Accumulated derivative net losses as of September 30, 2023 |  | $ | (5.9) |  |  | $ | (1.5) |  |  | $ | (4.4) |
The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the nine months ended September 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 |  | (11.3) |  |  | (2.8) |  |  | (8.5) |
Net losses reclassified from accumulated other comprehensive loss into income |  | 6.4 |  |  | 1.4 |  |  | 5.0 |
Accumulated derivative net losses as of September 30, 2023 |  | $ | (5.9) |  |  | $ | (1.5) |  |  | $ | (4.4) |
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
| September 30, 2023 |  | December 31, 2022
Cross currency swap contract | $ | 300.0 |  |  | $ | 300.0 |
Foreign currency denominated debt | 158.7 |  |  | — |
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 nine months ended September 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 Nine Months Ended |  |
| Before-Tax Amount |  | Income Tax Benefit (Expense) |  | After-Tax Amount |  | Before-Tax Amount |  | Income Tax Benefit (Expense) |  | After-Tax Amount |  |  |  |  |  |
September 30, 2023 | $ | 4.1 |  |  | $ | (1.0) |  |  | $ | 3.1 |  |  | $ | (2.6) |  |  | $ | 0.7 |  |  | $ | (1.9) |  |  |  |  |  |  |
September 30, 2022 | 13.7 |  |  | (3.5) |  |  | 10.2 |  |  | 34.5 |  |  | (8.9) |  |  | 25.6 |  |  |  |  |  |  |
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 nine months ended September 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 Nine Months Ended |  |
| Before-Tax Amount |  | Income Tax Benefit (Expense) |  | After-Tax Amount |  | Before-Tax Amount |  | Income Tax Benefit (Expense) |  | After-Tax Amount |  |  |  |  |  |
September 30, 2023 | $ | 2.4 |  |  | $ | (0.7) |  |  | $ | 1.7 |  |  | $ | 3.7 |  |  | $ | (1.0) |  |  | $ | 2.7 |  |  |  |  |  |  |
September 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):
|  |  | Loss Recognized in Net Income for the Three Months Ended |  | Gain (Loss) Recognized in Net Income for the Nine Months Ended
| Classification of Gain (Loss) |  | September 30, 2023 |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
Foreign currency contracts | Other expense, net |  | $ | (9.9) |  |  | $ | (6.1) |  |  | $ | 39.2 |  |  | $ | (19.5) |
Fair Value of Derivative Instruments | The table below sets forth the fair value of derivative instruments as of September 30, 2023 (in millions):
| Asset Derivatives as of September 30, 2023 |  | Liability Derivatives as of September 30, 2023
| 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 |  | $ | 4.6 |
Commodity contracts | Other current assets |  | — |  |  | Other current liabilities |  | — |
Cross currency swap contract | Other noncurrent assets |  | 30.4 |  |  | Other noncurrent liabilities |  | — |
Derivative instruments not designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency contracts(1) | Other current assets |  | 18.8 |  |  | Other current liabilities |  | 7.0 |
Total derivative instruments |  |  | $ | 50.5 |  |  |  |  | $ | 11.6 |
__________________________________ (1) The outstanding contracts as of September 30, 2023 range in maturity through December 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 September 30, 2023 and December 31, 2022 are summarized below (in millions):
| As of September 30, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Derivative assets | $ | — |  |  | $ | 50.5 |  |  | $ | — |  |  | $ | 50.5 |
Derivative liabilities | — |  |  | 11.6 |  |  | — |  |  | 11.6 |
| 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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