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Financial Instruments, Risk Management and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Carrying value of financial instruments

The carrying value of these financial instruments approximates their fair value. Our other financial instruments include the following:

Financial Instrument						Valuation Method
Foreign exchange forward contracts						Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies.
Commodity forward contracts						Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on quoted market prices for applicable commodities.
Debt						Our estimates and information obtained from independent third parties using market data, such as bid/ask spreads for the last business day of the reporting period.

Schedule of derivative instruments in statement of financial position, fair value

The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments.

			March 31, 2022
			Gross Amount of Derivatives
(in Millions)			Designated as Cash Flow Hedges						Not Designated as Hedging Instruments						Total Gross Amounts						Gross Amounts Offset in the Condensed Consolidated Balance Sheet (3)						Net Amounts
Foreign exchange contracts			$	35.7					$	3.1					$	38.8					$	(31.5)					$	7.3
Interest rate contracts			10.0						—						10.0						—						10.0
Total derivative assets (1)			$	45.7					$	3.1					$	48.8					$	(31.5)					$	17.3
Foreign exchange contracts			$	(102.4)					$	(29.6)					$	(132.0)					$	31.5					$	(100.5)
Total derivative liabilities (2)			$	(102.4)					$	(29.6)					$	(132.0)					$	31.5					$	(100.5)
Net derivative assets (liabilities)			$	(56.7)					$	(26.5)					$	(83.2)					$	—					$	(83.2)

			December 31, 2021
			Gross Amount of Derivatives
(in Millions)			Designated as Cash Flow Hedges						Not Designated as Hedging Instruments						Total Gross Amounts						Gross Amounts Offset in the Condensed Consolidated Balance Sheet (3)						Net Amounts
Foreign exchange contracts			$	35.9					$	5.7					$	41.6					$	(21.9)					$	19.7
Interest rate contracts			3.7						—						3.7						—						3.7
Total derivative assets (1)			$	39.6					$	5.7					$	45.3					$	(21.9)					$	23.4
Foreign exchange contracts			$	(16.2)					$	(9.7)					$	(25.9)					$	21.9					$	(4.0)
Total derivative liabilities (2)			$	(16.2)					$	(9.7)					$	(25.9)					$	21.9					$	(4.0)
Net derivative assets (liabilities)			$	23.4					$	(4.0)					$	19.4					$	—					$	19.4

______________

(1)    Net balance is included in "Prepaid and other current assets" in the condensed consolidated balance sheets.

(2)    Net balance is included in "Accrued and other liabilities" in the condensed consolidated balance sheets.

(3)    Represents net derivatives positions subject to master netting arrangements.

Schedule of derivative instruments, gain (loss) in statement of financial performance

The tables below summarize the gains or losses related to our cash flow hedges and derivatives not designated as hedging instruments.

Derivatives in Cash Flow Hedging Relationships

			Contracts
			Foreign Exchange																		Interest rate												Total
			Three Months Ended March 31,
(in Millions)			2022						2021																		2022						2021						2022						2021
Unrealized hedging gains (losses) and other, net of tax			$	(89.6)					$	33.5																	$	4.9					$	7.0					$	(84.7)					$	40.5
Reclassification of deferred hedging (gains) losses, net of tax (1)			(0.2)						3.9																		0.8						0.2						0.6						4.1
Total derivative instrument impact on comprehensive income, net of tax			$	(89.8)					$	37.4																	$	5.7					$	7.2					$	(84.1)					$	44.6

______________

(1)See Note 13 for classification of amounts within the condensed consolidated statements of income (loss).

Derivatives Not Designated as Hedging Instruments

									Amount of Pre-tax Gain (Loss)  Recognized in Income on Derivatives (1)
									Three Months Ended March 31,
(in Millions)									2022						2021
Foreign exchange contracts									$	(16.2)					$	(12.7)
Total									$	(16.2)					$	(12.7)

______________

(1)Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. These amounts are included in "Costs of sales and services" on the consolidated statements of income (loss).

Schedule of fair value, assets and liabilities measured on recurring basis

The following tables present our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets. During the periods presented there were no transfers between fair value hierarchy levels.

(in Millions)			March 31, 2022						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets
Derivatives – Foreign exchange (1)			$	7.3					$	—					$	7.3					$	—
Derivatives – Interest rate (1)			10.0						—						10.0						—
Other (2)			20.9						20.9						—						—
Total assets			$	38.2					$	20.9					$	17.3					$	—
Liabilities
Derivatives – Foreign exchange (1)			$	100.5					$	—					$	100.5					$	—
Derivatives – Interest rate (1)			—						—						—						—
Other (3)			26.8						26.8						—						—
Total liabilities			$	127.3					$	26.8					$	100.5					$	—

(in Millions)			December 31, 2021						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets
Derivatives – Foreign exchange (1)			$	19.7					$	—					$	19.7					$	—
Derivatives - Interest Rate (1)			3.7						—						3.7						—
Other (2)			21.1						21.1						—						—
Total assets			$	44.5					$	21.1					$	23.4					$	—
Liabilities
Derivatives – Foreign exchange (1)			$	4.0					$	—					$	4.0					$	—
Derivatives – Interest rate (1)			—						—						—						—
Other (3)			26.2						26.2						—						—
Total liabilities			$	30.2					$	26.2					$	4.0					$	—

____________________

(1)See the Fair Value of Derivative Instruments table within this Note for classification on the condensed consolidated balance sheets.

(2)Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheets. Both the asset and liability are recorded at fair value. Asset amounts are included in "Other assets including long-term receivables, net" in the condensed consolidated balance sheets.

(3)Primarily consists of a deferred compensation arrangement recognized on our balance sheets. Both the asset and liability are recorded at fair value. Liability amounts are included in "Other long-term liabilities" in the condensed consolidated balance sheets.

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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