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Derivatives (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2024 and December 31, 2023 were as follows (in millions):

	June 30, 2024				December 31, 2023
Contracts designated as hedges:
Euro	$	207.6			$	227.0
Canadian dollar		102.5				97.9
British pound		62.5				56.9
Australian dollar		46.7				46.5
Swiss franc		39.2				37.4
Other (a)		37.7				40.3
Contracts not designated as hedges:
Euro	$	550.9			$	597.9
Mexican peso		181.5				168.1
British pound		103.8				174.9
Philippine peso		57.8				38.0
Australian dollar		55.4				79.9
Canadian dollar		52.4				77.2
Indian rupee		49.8				55.3
Brazilian real		28.9				31.4
Chinese yuan		22.9				30.0
Japanese yen		16.1				29.2
Singapore dollar		14.5				27.5
Other (a)		142.7				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 June 30, 2024 and December 31, 2023 (in millions):

		Derivative Assets										Derivative Liabilities
				Fair Value										Fair Value
		Balance Sheet		June 30,				December 31,				Balance Sheet		June 30,				December 31,
		Location		2024				2023				Location		2024				2023
Derivatives designated as hedges:
Foreign currency cash flow hedges		Other assets		$	10.0			$	8.5			Other liabilities		$	4.1			$	13.2
Total derivatives designated as hedges				$	10.0			$	8.5					$	4.1			$	13.2
Derivatives not designated as hedges:
Foreign currency		Other assets		$	2.4			$	2.3			Other liabilities		$	2.9			$	4.2
Total derivatives not designated as hedges				$	2.4			$	2.3					$	2.9			$	4.2
Total derivatives				$	12.4			$	10.8					$	7.0			$	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 and six months ended June 30, 2024 and 2023 (in millions):

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Foreign currency derivatives (a)		$	1.6			$	(3.5	)		$	15.2			$	(5.7	)

(a)Gains/(losses) of $(0.2) million and $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and $(1.1) million and $1.9 million for the six months ended June 30, 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 and six months ended June 30, 2024 and 2023 (in millions):

		Three Months Ended June 30,
		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		$	1,066.4			$	(31.1	)		$	1,170.0			$	(27.0	)
Gain/(loss) on cash flow hedges:
Foreign currency derivatives:
Gains reclassified from AOCL into earnings			1.3				—				7.8				—
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach			1.6				—				1.7				—
Interest rate derivatives:
Gains/(losses) reclassified from AOCL into earnings			—				0.1				—				—

		Six Months Ended June 30,
		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		$	2,115.5			$	(57.2	)		$	2,206.9			$	(52.0	)
Gain/(loss) on cash flow hedges:
Foreign currency derivatives:
Gains reclassified from AOCL into earnings			4.0				—				16.0				—
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach			3.2				—				3.3				—
Interest rate derivatives:
Gains/(losses) reclassified from AOCL into earnings			—				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 six months ended June 30, 2024 and 2023 (in millions):

				Three Months Ended								Six Months Ended
				June 30,								June 30,
Derivatives		Location		2024				2023				2024				2023
Foreign currency derivatives (a)		Selling, general, and administrative		$	6.1			$	3.3			$	27.6			$	8.0

(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 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 $12.9 million and $3.1 million for the three months ended June 30, 2024 and 2023, respectively, and $30.4 million and $2.9 million for the six months ended June 30, 2024 and 2023, respectively.

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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 the notional amounts of outstanding derivative positions.

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