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Derivatives (Tables) | 3 Months Ended
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Mar. 31, 2024
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 March 31, 2024 and December 31, 2023 were as follows (in millions):
| March 31, 2024 |  |  | December 31, 2023 |
Contracts designated as hedges: |  |  |  |  |
Euro | $ | 212.6 |  |  | $ | 227.0 |
Canadian dollar |  | 98.6 |  |  |  | 97.9 |
British pound |  | 58.4 |  |  |  | 56.9 |
Australian dollar |  | 46.1 |  |  |  | 46.5 |
Swiss franc |  | 37.9 |  |  |  | 37.4 |
Other (a) |  | 39.0 |  |  |  | 40.3 |
Contracts not designated as hedges: |  |  |  |  |
Euro | $ | 516.5 |  |  | $ | 597.9 |
Mexican peso |  | 213.3 |  |  |  | 168.1 |
British pound |  | 100.3 |  |  |  | 174.9 |
Australian dollar |  | 67.4 |  |  |  | 79.9 |
Indian rupee |  | 50.0 |  |  |  | 55.3 |
Canadian dollar |  | 47.4 |  |  |  | 77.2 |
Brazilian real |  | 32.6 |  |  |  | 31.4 |
Chinese yuan |  | 27.3 |  |  |  | 30.0 |
Philippine peso |  | 26.9 |  |  |  | 38.0 |
Singapore dollar |  | 18.9 |  |  |  | 27.5 |
Japanese yen |  | 15.3 |  |  |  | 29.2 |
Other (a) |  | 138.2 |  |  |  | 146.2 |
(a) Comprised of exposures to various currencies; none of these individual currency exposures is greater than $25 million for both periods presented.
Fair Value of Derivatives | The following table summarizes the fair value of derivatives reported in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (in millions):
|  | Derivative Assets |  |  | Derivative Liabilities |
|  |  |  | Fair Value |  |  |  |  | Fair Value |
|  | Balance Sheet |  | March 31, |  |  | December 31, |  |  | Balance Sheet |  | March 31, |  |  | December 31, |
|  | Location |  | 2024 |  |  | 2023 |  |  | Location |  | 2024 |  |  | 2023 |
Derivatives designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency cash flow hedges |  | Other assets |  | $ | 10.7 |  |  | $ | 8.5 |  |  | Other liabilities |  | $ | 4.7 |  |  | $ | 13.2 |
Total derivatives designated as hedges |  |  |  | $ | 10.7 |  |  | $ | 8.5 |  |  |  |  | $ | 4.7 |  |  | $ | 13.2 |
Derivatives not designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency |  | Other assets |  | $ | 5.0 |  |  | $ | 2.3 |  |  | Other liabilities |  | $ | 2.0 |  |  | $ | 4.2 |
Total derivatives not designated as hedges |  |  |  | $ | 5.0 |  |  | $ | 2.3 |  |  |  |  | $ | 2.0 |  |  | $ | 4.2 |
Total derivatives |  |  |  | $ | 15.7 |  |  | $ | 10.8 |  |  |  |  | $ | 6.7 |  |  | $ | 17.4 |
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 months ended March 31, 2024 and 2023 (in millions):
|  | Three Months Ended March 31, |
|  | 2024 |  |  | 2023 |
Foreign currency derivatives (a) |  | $ | 13.6 |  |  | $ | (2.2 | )
(a) Gains/(losses) of $(0.9) million and $1.8 million for the three months ended March 31, 2024 and 2023, 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 months ended March 31, 2024 and 2023 (in millions):
|  | Three Months Ended March 31, |
|  | 2024 |  |  | 2023 |
|  | 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 |  | $ | 1,049.1 |  |  | $ | (26.1 | ) |  | $ | 1,036.9 |  |  | $ | (25.0 | )
Gain/(loss) on cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives: |  |  |  |  |  |  |  |  |  |  |  |
Gains reclassified from AOCL into earnings |  |  | 2.7 |  |  |  | — |  |  |  | 8.2 |  |  |  | — |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach |  |  | 1.6 |  |  |  | — |  |  |  | 1.6 |  |  |  | — |
Interest rate derivatives: |  |  |  |  |  |  |  |  |  |  |  |
Gains/(losses) reclassified from AOCL into earnings |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
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 months ended March 31, 2024 and 2023 (in millions):
|  |  |  | Three Months Ended |
|  |  |  | March 31, |
Derivatives |  | Location |  | 2024 |  |  | 2023 |
Foreign currency derivatives (a) |  | Selling, general, and administrative |  | $ | 21.5 |  |  | $ | 4.7 |
(a) 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 gains/(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 $(17.5) million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively.

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