XML 43 R32.htm IDEA: XBRL DOCUMENT
v3.23.3

Derivatives (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Notional Amounts of Foreign Currency Forward Contracts | The aggregate equivalent United States dollar notional amounts of foreign currency forward contracts as of September 30, 2023 and December 31, 2022 were as follows (in millions):
|  | September 30, 2023 |
Contracts designated as hedges: |  |  |
Euro |  | $ | 244.0 |
Canadian dollar |  |  | 100.0 |
British pound |  |  | 56.6 |
Australian dollar |  |  | 47.9 |
Swiss franc |  |  | 37.4 |
Swedish krona |  |  | 25.0 |
Other (a) |  |  | 17.5 |
Contracts not designated as hedges: |  |  |
Euro |  | $ | 546.9 |
Mexican peso |  |  | 176.7 |
British pound |  |  | 111.4 |
Indian rupee |  |  | 54.6 |
Canadian dollar |  |  | 46.2 |
Philippine peso |  |  | 44.9 |
Australian dollar |  |  | 40.7 |
Chinese yuan |  |  | 37.8 |
Brazilian real |  |  | 30.6 |
Other (a) |  |  | 172.5 |
|  | December 31, 2022 |
Contracts designated as hedges: |  |  |
Euro |  | $ | 321.6 |
Canadian dollar |  |  | 117.3 |
Australian dollar |  |  | 53.2 |
Swiss franc |  |  | 40.4 |
British pound |  |  | 40.4 |
Swedish krona |  |  | 25.8 |
Other (a) |  |  | 22.1 |
Contracts not designated as hedges: |  |  |
Euro |  | $ | 603.2 |
Mexican peso |  |  | 132.9 |
British pound |  |  | 115.1 |
Indian rupee |  |  | 52.6 |
Australian dollar |  |  | 48.7 |
Canadian dollar |  |  | 32.2 |
Japanese yen |  |  | 30.5 |
Chinese yuan |  |  | 30.1 |
Swiss franc |  |  | 28.3 |
Swedish krona |  |  | 26.7 |
Philippine peso |  |  | 26.2 |
Other (a) |  |  | 137.0 |
(a) Comprised of exposures to various currencies; none of these individual currency exposures is greater than $25 million.
Fair Value of Derivatives | The following table summarizes the fair value of derivatives reported in the Company’s Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 (in millions):
|  | Derivative Assets |  |  | Derivative Liabilities |
|  |  |  | Fair Value |  |  |  |  | Fair Value |
|  | Balance Sheet |  | September 30, |  |  | December 31, |  |  | Balance Sheet |  | September 30, |  |  | December 31, |
|  | Location |  | 2023 |  |  | 2022 |  |  | Location |  | 2023 |  |  | 2022 |
Derivatives designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency cash flow hedges |  | Other assets |  | $ | 22.5 |  |  | $ | 35.2 |  |  | Other liabilities |  | $ | 2.5 |  |  | $ | 4.7 |
Total derivatives designated as hedges |  |  |  | $ | 22.5 |  |  | $ | 35.2 |  |  |  |  | $ | 2.5 |  |  | $ | 4.7 |
Derivatives not designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Business Solutions operations - foreign currency (a) |  | Assets held for sale |  | $ | — |  |  | $ | 88.6 |  |  | Liabilities associated with assets held for sale |  | $ | — |  |  | $ | 89.5 |
Foreign currency |  | Other assets |  |  | 7.6 |  |  |  | 2.3 |  |  | Other liabilities |  |  | 3.0 |  |  |  | 4.7 |
Total derivatives not designated as hedges |  |  |  | $ | 7.6 |  |  | $ | 90.9 |  |  |  |  | $ | 3.0 |  |  | $ | 94.2 |
Total derivatives |  |  |  | $ | 30.1 |  |  | $ | 126.1 |  |  |  |  | $ | 5.5 |  |  | $ | 98.9 |
(a) In many circumstances, the Company allowed its Business Solutions customers to settle part or all of their derivative contracts prior to maturity. However, the offsetting positions entered into with Convera did not allow for similar settlement. To mitigate this, additional foreign currency contracts were entered into with Convera to offset the original economic hedge contracts. This frequently resulted in changes in the Company’s derivative assets and liabilities that did not directly align with the performance in the underlying derivatives business.
Gross and Net Fair Value of Derivative Assets | The following tables summarize the gross and net fair value of derivative assets and liabilities as of September 30, 2023 and December 31, 2022 (in millions): Offsetting of Derivative Assets
|  |  |  |  | Gross |  |  | Net Amounts |  |  | Derivatives |  |  |  |
|  | Gross |  |  | Amounts Offset in |  |  | Presented in |  |  | Not Offset in |  |  |  |
|  | Amounts of |  |  | the Condensed |  |  | the Condensed |  |  | the Condensed |  |  |  |
|  | Recognized |  |  | Consolidated |  |  | Consolidated |  |  | Consolidated |  |  | Net |
September 30, 2023 |  | Assets |  |  | Balance Sheets |  |  | Balance Sheets |  |  | Balance Sheets |  |  | Amounts |
Derivatives subject to a master netting arrangement or similar agreement |  | $ | 28.9 |  |  | $ | — |  |  | $ | 28.9 |  |  | $ | (4.2 | ) |  | $ | 24.7 |
Derivatives that are not or may not be subject to master netting arrangement or similar agreement |  |  | 1.2 |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | $ | 30.1 |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives subject to a master netting arrangement or similar agreement |  | $ | 55.8 |  |  | $ | — |  |  | $ | 55.8 |  |  | $ | (26.3 | ) |  | $ | 29.5 |
Derivatives that are not or may not be subject to master netting arrangement or similar agreement |  |  | 70.3 |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | $ | 126.1 |  |  |  |  |  |  |  |  |  |  |  |  |
Gross and Net Fair Value of Derivative Liabilities | Offsetting of Derivative Liabilities
|  |  |  |  | Gross |  |  | Net Amounts |  |  | Derivatives |  |  |  |
|  | Gross |  |  | Amounts Offset in |  |  | Presented in |  |  | Not Offset in |  |  |  |
|  | Amounts of |  |  | the Condensed |  |  | the Condensed |  |  | the Condensed |  |  |  |
|  | Recognized |  |  | Consolidated |  |  | Consolidated |  |  | Consolidated |  |  | Net |
September 30, 2023 |  | Liabilities |  |  | Balance Sheets |  |  | Balance Sheets |  |  | Balance Sheets |  |  | Amounts |
Derivatives subject to a master netting arrangement or similar agreement |  | $ | 4.2 |  |  | $ | — |  |  | $ | 4.2 |  |  | $ | (4.2 | ) |  | $ | — |
Derivatives that are not or may not be subject to master netting arrangement or similar agreement |  |  | 1.3 |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | $ | 5.5 |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives subject to a master netting arrangement or similar agreement |  | $ | 77.8 |  |  | $ | — |  |  | $ | 77.8 |  |  | $ | (26.3 | ) |  | $ | 51.5 |
Derivatives that are not or may not be subject to master netting arrangement or similar agreement |  |  | 21.1 |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  | $ | 98.9 |  |  |  |  |  |  |  |  |  |  |  |  |
Schedule of Amount and Location of Gains/(Losses) from Hedging Activities | The following table presents the pre-tax amount of unrealized gains/(losses) recognized in other comprehensive income from cash flow hedges for the three and nine months ended September 30, 2023 and 2022 (in millions):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Foreign currency derivatives (a) |  | $ | 14.7 |  |  | $ | 43.4 |  |  | $ | 9.0 |  |  | $ | 86.9 |
(a) Gains/(losses) of $(0.8) million and $0.2 million for the three months ended September 30, 2023 and 2022, respectively, and $1.1 million and $(4.7) million for the nine months ended September 30, 2023 and 2022, respectively, represent amounts excluded from the assessment of effectiveness and recognized in other comprehensive income, for which an amortization approach is applied. The following table presents the location and amounts of pre-tax net gains/(losses) from cash flow hedging relationships recognized in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2023 and 2022 (in millions):
|  | Three Months Ended September 30, |
|  | 2023 |  |  | 2022 |
|  | Revenues |  |  | Interest Expense |  |  | Revenues |  |  | Interest Expense |
Total amounts presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded |  | $ | 1,097.8 |  |  | $ | (27.0 | ) |  | $ | 1,089.6 |  |  | $ | (25.2 | )
Gain/(loss) on cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives: |  |  |  |  |  |  |  |  |  |  |  |
Gains reclassified from AOCL into earnings |  |  | 4.6 |  |  |  | — |  |  |  | 17.5 |  |  |  | — |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach |  |  | 1.6 |  |  |  | — |  |  |  | 1.5 |  |  |  | — |
Interest rate derivatives: |  |  |  |  |  |  |  |  |  |  |  |
Gains/(losses) reclassified from AOCL into earnings |  |  | — |  |  |  | 0.1 |  |  |  | — |  |  |  | — |
|  | Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |
|  | Revenues |  |  | Interest Expense |  |  | Revenues |  |  | Interest Expense |
Total amounts presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded |  | $ | 3,304.7 |  |  | $ | (79.0 | ) |  | $ | 3,383.6 |  |  | $ | (74.8 | )
Gain/(loss) on cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives: |  |  |  |  |  |  |  |  |  |  |  |
Gains reclassified from AOCL into earnings |  |  | 20.6 |  |  |  | — |  |  |  | 32.4 |  |  |  | — |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach |  |  | 4.9 |  |  |  | — |  |  |  | 4.0 |  |  |  | — |
Interest rate derivatives: |  |  |  |  |  |  |  |  |  |  |  |
Gains/(losses) reclassified from AOCL into earnings |  |  | — |  |  |  | 0.1 |  |  |  | — |  |  |  | (0.1 | )
Undesignated Hedges The following table presents the location and amount of pre-tax net gains from undesignated hedges in the Condensed Consolidated Statements of Income on derivatives for the three and nine months ended September 30, 2023 and 2022 (in millions):
|  |  |  | Three Months Ended |  |  | Nine Months Ended |
|  |  |  | September 30, |  |  | September 30, |
Derivatives (a) |  | Location |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Foreign currency derivatives (b) |  | Selling, general, and administrative |  | $ | 22.5 |  |  | $ | 42.6 |  |  | $ | 30.5 |  |  | $ | 97.6 |
(a) The Company used foreign currency forward and option contracts as part of its Business Solutions payments operations. These derivative contracts are excluded from this table as they were managed as part of a broader currency portfolio that included non-derivative currency exposures. The gains and losses on these derivatives are included as part of the broader disclosure of portfolio revenue for this business discussed above. (b) The Company uses foreign currency forward contracts to offset foreign exchange rate fluctuations on settlement assets and obligations as well as certain foreign currency denominated positions. Foreign exchange losses on settlement assets and obligations, cash balances, and other assets and liabilities, not including amounts related to derivative activity as displayed above and included in Selling, general, and administrative in the Condensed Consolidated Statements of Income, were $18.4 million and $40.6 million for the three months ended September 30, 2023 and 2022, respectively, and $21.3 million and $90.4 million for the nine months ended September 30, 2023 and 2022, respectively.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4E -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4E Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4A + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration