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Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2025
Equity [Abstract]  
Accumulated Other Comprehensive Income

9. Accumulated Other Comprehensive Income

Accumulated other comprehensive income (loss) (“AOCI”) refers to certain gains and losses that under GAAP are included in comprehensive income but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Amounts in AOCI may be reclassified to net earnings upon the occurrence of certain events.

Our AOCI is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges and unrecognized prior service costs and gains and losses in actuarial assumptions related to our defined benefit plans. Foreign currency translation adjustments are reclassified to net earnings upon sale or upon a complete or substantially complete liquidation of an investment in a foreign entity. Unrealized gains and losses on cash flow hedges are reclassified to net earnings when the hedged item affects net earnings. Amounts related to defined benefit plans that are in AOCI are reclassified over the service periods of employees in the plan.

The following table shows the changes in the components of AOCI gains (losses), net of tax (in millions):

 

 

Foreign

 

 

Cash

 

 

Defined

 

 

 

 

 

 

Currency

 

 

Flow

 

 

Benefit

 

 

Total

 

 

 

Translation

 

 

Hedges

 

 

Plan Items

 

 

AOCI

 

Balance at December 31, 2024

 

$

(239.0

)

 

$

88.2

 

 

$

(112.0

)

 

$

(262.8

)

AOCI before reclassifications

 

 

54.8

 

 

 

(36.6

)

 

 

-

 

 

 

18.2

 

Reclassifications to statements of earnings

 

 

-

 

 

 

(38.4

)

 

 

(0.8

)

 

 

(39.2

)

Balance at September 30, 2025

 

$

(184.2

)

 

$

13.2

 

 

$

(112.8

)

 

$

(283.8

)

The following table shows the reclassification adjustments from AOCI (in millions):

 

 

Amount of Gain (Loss)

 

 

 

 

 

Reclassified from AOCI

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

 

September 30,

 

 

September 30,

 

 

Location on

Component of AOCI

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

Statements of Earnings

Cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange forward contracts

 

$

10.7

 

 

$

21.0

 

 

$

47.4

 

 

$

64.7

 

 

Cost of products sold

Forward starting interest rate swaps

 

 

(0.2

)

 

 

(0.2

)

 

 

(0.6

)

 

 

(0.6

)

 

Interest expense, net

 

 

 

10.5

 

 

 

20.8

 

 

 

46.8

 

 

 

64.1

 

 

Total before tax

 

 

2.1

 

 

 

3.7

 

 

 

8.4

 

 

 

11.2

 

 

Provision for income taxes

 

 

$

8.4

 

 

$

17.1

 

 

$

38.4

 

 

$

52.9

 

 

Net of tax

Defined benefit plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost and unrecognized actuarial loss

 

$

(1.1

)

 

$

0.7

 

 

$

1.0

 

 

$

2.0

 

 

Other income, net

 

 

(0.2

)

 

 

(0.4

)

 

 

0.2

 

 

 

(0.3

)

 

Provision for income taxes

 

 

$

(0.9

)

 

$

1.1

 

 

$

0.8

 

 

$

2.3

 

 

Net of tax

Total reclassifications

 

$

7.5

 

 

$

18.2

 

 

$

39.2

 

 

$

55.2

 

 

Net of tax

 

 

The following tables show the tax effects on each component of AOCI recognized in our condensed consolidated statements of comprehensive income (in millions):

 

 

Three Months Ended September 30, 2025

 

 

Nine Months Ended September 30, 2025

 

 

 

Before Tax

 

 

Tax

 

 

Net of Tax

 

 

Before Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency cumulative translation adjustments

 

$

(9.2

)

 

 

1.4

 

 

$

(10.6

)

 

$

(11.3

)

 

 

(66.1

)

 

$

54.8

 

Unrealized cash flow hedge gains (losses)

 

 

23.3

 

 

 

4.5

 

 

 

18.8

 

 

 

(43.7

)

 

 

(7.1

)

 

 

(36.6

)

Reclassification adjustments on cash flow hedges

 

 

(10.5

)

 

 

(2.1

)

 

 

(8.4

)

 

 

(46.8

)

 

 

(8.4

)

 

 

(38.4

)

Adjustments to prior service cost and unrecognized actuarial assumptions

 

 

1.1

 

 

 

0.2

 

 

 

0.9

 

 

 

(1.0

)

 

 

(0.2

)

 

 

(0.8

)

Total Other Comprehensive Income (Loss)

 

$

4.7

 

 

$

4.0

 

 

$

0.7

 

 

$

(102.8

)

 

$

(81.8

)

 

$

(21.0

)

 

 

 

Three Months Ended September 30, 2024

 

 

Nine Months Ended September 30, 2024

 

 

 

Before Tax

 

 

Tax

 

 

Net of Tax

 

 

Before Tax

 

 

Tax

 

 

Net of Tax

 

Foreign currency cumulative translation adjustments

 

$

34.9

 

 

$

(26.2

)

 

$

61.1

 

 

$

19.7

 

 

$

(1.5

)

 

$

21.2

 

Unrealized cash flow hedge (losses) gains

 

 

(54.0

)

 

 

(4.1

)

 

 

(49.9

)

 

 

33.5

 

 

 

10.7

 

 

 

22.8

 

Reclassification adjustments on cash flow hedges

 

 

(20.8

)

 

 

(3.7

)

 

 

(17.1

)

 

 

(64.1

)

 

 

(11.2

)

 

 

(52.9

)

Adjustments to prior service cost and unrecognized actuarial assumptions

 

 

(0.7

)

 

 

0.4

 

 

 

(1.1

)

 

 

(2.0

)

 

 

0.3

 

 

 

(2.3

)

Total Other Comprehensive Income (Loss)

 

$

(40.6

)

 

$

(33.6

)

 

$

(7.0

)

 

$

(12.9

)

 

$

(1.7

)

 

$

(11.2

)