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Derivative Instruments & Hedging Activities | 9 Months Ended
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Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES | 8. DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES The Company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments and hedging activities. The fair value of the Company’s derivative financial instruments included in the Consolidated Balance Sheets is presented as follows:
| Asset Derivatives |  |  | Liability Derivatives |
| Balance Sheet |  | Fair Value (1) |  | Fair Value (1) |  |  | Balance Sheet |  | Fair Value (1) |  | Fair Value (1) |
| Location |  | September 30, 2023 |  | December 31, 2022 |  |  | Location |  | September 30, 2023 |  | December 31, 2022 |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swap contracts | Other assets |  | $ | 12.4 |  | $ | 11.1 |  |  | Other non-current liabilities |  | $ | — |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Forward foreign exchange contracts | Other current assets |  |  | 0.1 |  |  | 1.0 |  |  | Other current liabilities |  |  | 0.1 |  |  | — |
Forward foreign exchange contracts | Other assets |  |  | — |  |  | — |  |  | Other non-current liabilities |  |  | — |  |  | 0.3 |
Total derivatives |  |  | $ | 12.5 |  | $ | 12.1 |  |  |  |  | $ | 0.1 |  | $ | 0.3 |
(1) See Note 4 for information regarding the inputs used in determining the fair value of derivative assets and liabilities. The amount of gains and losses related to the Company’s derivative financ ial instruments for the nine months ended September 30, 2023, and October 1, 2022, are presented as follows:
|  | Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) |  |  | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) |
|  | September 30, 2023 |  | October 1, 2022 |  |  | into Earnings (Effective Portion) |  | September 30, 2023 |  | October 1, 2022 |
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |
Interest rate swap contracts |  | $ | 1.4 |  | $ | 13.7 |  |  | Interest expense, net |  | $ | 5.2 |  | $ | (1.4 | )
Interest ex pense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, totaled $22.6 and $11.7 for th e nine months ended September 30, 2023, and October 1, 2022, respectively.
|  | Amount of Gain or (Loss) Recognized in Earnings on Derivatives |  |  | Location of Gain or (Loss) Recognized
|  | September 30, 2023 |  | October 1, 2022 |  |  | in Earnings on Derivatives
Derivatives not designated as hedging instruments: |  |  |
Forward foreign exchange contracts |  | $ | (0.1 | ) | $ | 6.4 |  |  | Foreign currency transaction gain / loss, net
Interest Rate Swap Contracts The Company has entered into interest rate swap transactions to hedge the variable interest rate payments on its credit facilities. In connection with the transactions, the Company pays interest based upon a fixed rate as agreed upon with the respective counterparties and receives variable rate interest payments. The interest rate swaps are designated as hedging instruments and are accounted for as cash flow h e dges. The aggregate notional amount of the remaining swaps was $220.0 as of September 30, 2023. The notional amount decreases periodically through the dates of expiration in October 2025 and April 2028. The contracts are settled with the respective counterparties on a net basis at each settlement date. Forward Foreign Exchange Contracts The Company has entered into forward contracts to economically hedge translational and transactional exposure associated with various business units whose local currency differs from the Company’s reporting currency. The Company’s forward contracts are not designated as hedging instruments for accounting purposes. At September 30, 2023, the Company had two forward foreign exchange contracts with an aggregate notional value of €4.5, maturing at various dates through March 2024. Net Investment Hedge The Company utilizes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company has designated €90.0 of borrowings on the revolving credit facility as a net investment hedge of a portion of the Company’s European operations. The carrying value of the euro denominated debt totaled $95.2 as of September 30, 2023, and is included in the Revolving lines of credit line item in the Consolidated Balance Sheets. The gain on the net investment hedge recorded in accumulated other comprehensive income as part of the currency translation adjustment was $0.9, net of tax, for the nine months ended September 30, 2023.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
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