Derivative Financial Instruments

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

In the first quarter of 2020, the Company terminated its pound sterling-denominated forward foreign currency contracts and its corresponding collar contracts, which were designated as net investment hedges, and upon settlement, the Company received net proceeds of $24.9 million. The net proceeds from the termination of the contracts are presented within sale of investment securities in the Consolidated Statements of Cash Flows.

During the fourth quarter of 2021, the Company terminated its interest rate swap contract (the “interest rate swap”) with a large financial institution (the “swap counterparty”), and upon settlement paid $0.4 million. The interest rate swap was designated as a cash flow hedge and was used to exchange a portion of the Company’s LIBOR-based interest payments for fixed rate interest payments. Under the contract, the Company received payments based on one-month LIBOR and made payments based on an annual fixed rate of 0.5135% on a notional amount of $250.0 million. The terms of the contract also required the Company and the swap counterparty to post cash collateral in certain circumstances throughout the duration of the contract. As of December 31, 2021, the Company held no cash collateral from the swap counterparty, and the swap counterparty held no cash collateral from the Company.

Certain of the Company’s Affiliates use forward foreign currency contracts to hedge the risk of foreign exchange rate movements, which are designated as cash flow hedges.

The following table summarizes the Company’s and its Affiliates’ derivative financial instruments measured at fair value on a recurring basis:


	December 31, 2020				December 31, 2021
	Assets		Liabilities		Assets		Liabilities
Forward foreign currency contracts	$	3.5	$	(2.3)	$	0.9	$	(0.8)


Interest rate swap	—		(1.9)		—		—
Total	$	3.5	$	(4.2)	$	0.9	$	(0.8)

The Company and certain of its consolidated Affiliates have entered into contracts that do not include set-off rights and are therefore presented on a gross basis in Other assets and Other liabilities; they were $3.5 million and $4.2 million, respectively, as of December 31, 2020, and $0.9 million and $0.8 million, respectively, as of December 31, 2021.

The following table summarizes the effects of the derivative financial instruments on the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Income:


	For the Years Ended December 31,
	2020						2021
	Gain (Loss) Recorded in Other Comprehensive Income (loss)		Gain Reclassified from Accumulated Other Comprehensive Loss into Earnings		Gain Recorded in Earnings from Excluded Components(1)		Gain (Loss) Recorded in Other Comprehensive Income (Loss)		Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings		Gain (loss) Recorded in Earnings from Excluded Components(1)
Forward foreign currency contracts	$	65.4	$	0.6	$	2.8	$	(1.0)	$	1.0	$	—
Put options	(47.7)		—		—		—		—		—
Call options	(1.3)		—		—		—		—		—
Interest rate swap	(1.9)		—		—		1.9		(0.4)		—
Total	$	14.5	$	0.6	$	2.8	$	0.9	$	0.6	$	—

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(1)The excluded components of the forward foreign currency contracts were recognized in earnings on a straight-line basis over the respective period of the contracts as a reduction to Interest expense.