Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments

Notional Amounts of Most Significant Net Foreign Exchange Hedge Positions Outstanding

	September 30,
Buy / (Sell)	2022
Euro	$	(411.1)
Chinese Yuan	$	(46.4)
Swedish Krona	$	20.7
South Korean Won	$	(18.3)
New Taiwan Dollar	$	15.6

Schedule of Effect of Derivative Instruments on Statements of Operations

	Location and Amount of Gain (Loss) Recognized in Statements of Operations
	Three Months Ended						Three Months Ended
	September 30, 2022						September 30, 2021
	Cost of sales		Interest expense, net		Other (expense) income, net		Cost of sales		Interest expense, net		Other (expense) income, net
Total amount of income and (expense) line items presented in the statements of operations in which the effects of derivative instruments are recorded	$	(1,217.6)	$	(30.4)	$	(0.5)	$	(1,101.0)	$	(23.0)	$	0.1
The effects of cash flow hedge instruments:
Foreign exchange cash flow hedges
Amount of gain reclassified from AOCI into income	$	—	$	—	$	—	$	0.3	$	—	$	—
Commodity cash flow hedges
Amount of gain reclassified from AOCI into income	$	2.0	$	—	$	—	$	—	$	—	$	—
Interest rate swaps
Amount of gain (loss) reclassified from AOCI into income	$	—	$	0.2	$	—	$	—	$	(0.9)	$	—
The effects of net investment hedge instruments:
Cross currency swaps (CCS)
Amount of gain excluded from effectiveness testing	$	—	$	—	$	—	$	—	$	1.9	$	—
The effects of derivatives not designated as hedge instruments:
Foreign exchange forward contracts
Amount of gain recognized in income (1)	$	—	$	—	$	33.7	$	—	$	—	$	23.3

	Location and Amount of Gain (Loss) Recognized in Statements of Operations
	Nine Months Ended						Nine Months Ended
	September 30, 2022						September 30, 2021
	Cost of sales		Interest expense, net		Other (expense) income, net		Cost of sales		Interest expense, net		Acquisition purchase price hedge gain (loss)		Other (expense) income, net
Total amount of income and (expense) line items presented in the statements of operations in which the effects of derivative instruments are recorded	$	(3,714.8)	$	(77.7)	$	(1.6)	$	(2,951.7)	$	(56.6)	$	(22.0)	$	(8.4)
The effects of cash flow hedge instruments:
Commodity cash flow hedges
Amount of gain reclassified from AOCI into income	$	2.0	$	—	$	—	$	—	$	—	$	—	$	—
Interest rate swaps
Amount of loss reclassified from AOCI into income	$	—	$	(1.2)	$	—	$	—	$	(2.6)	$	—	$	—
The effects of net investment hedge instruments:
Cross currency swaps (CCS)
Amount of gain excluded from effectiveness testing	$	—	$	2.4	$	—	$	—	$	5.5	$	—	$	—
The effects of derivatives not designated as hedge instruments:
Foreign exchange forward contracts
Amount of gain (loss) recognized in income (1)	$	—	$	—	$	81.6	$	—	$	—	$	(22.0)	$	43.4

(1) The $22.0 million loss incurred from the change in fair value of the forward currency hedge arrangement on the euro-denominated purchase price of the PMMA business during the nine months ended September 30, 2021 is presented separately in the condensed consolidated statements of operations from the gains recorded on the Company’s other foreign exchange forward contracts.

Schedule of Effect of Hedges on AOCI

`	Gain (Loss) Recognized in AOCI on Balance Sheet
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Designated as Cash Flow Hedges
Foreign exchange cash flow hedges	$	—	$	0.4	$	—	$	3.1
Commodity cash flow hedges		(5.4)		—		(5.4)		—
Interest rate swaps		(0.2)		0.8		2.2		2.5
Total	$	(5.6)	$	1.2	$	(3.2)	$	5.6
Designated as Net Investment Hedges
Cross currency swaps (CCS)	$	—	$	13.1	$	15.8	$	32.1
Total	$	—	$	13.1	$	15.8	$	32.1

	Gain (Loss) Recognized in Other expense, net in Statement of Operations
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Settlements and changes in the fair value of forward contracts (not designated as hedges) (1)	$	33.7	$	23.3	$	81.6	$	43.4
Remeasurement of foreign currency-denominated assets and liabilities	$	(35.4)	$	(23.7)	$	(83.4)	$	(43.0)
Total	$	(1.7)	$	(0.4)	$	(1.8)	$	0.4

(1) Amount does not include the loss of $22.0 million recorded from the change in fair value of the forward currency hedge arrangement on the euro-denominated purchase price of the PMMA business during the nine months ended September 30, 2021.

Schedule of Gross and Net Unrealized Gains and Losses and Balance Sheet Classification

	September 30, 2022
	Foreign
	Exchange		Commodity
Balance Sheet	Forward		Cash Flow
Classification	Contracts		Hedges		Total
Asset Derivatives:
Accounts receivable, net of allowance	$	11.5	$	—	$	11.5
Gross derivative asset position		11.5		—		11.5
Less: Counterparty netting		(0.7)		—		(0.7)
Net derivative asset position	$	10.8	$	—	$	10.8
Liability Derivatives:
Accounts payable	$	(0.7)	$	(1.8)	$	(2.5)
Gross derivative liability position		(0.7)		(1.8)		(2.5)
Less: Counterparty netting		0.7		—		0.7
Net derivative liability position	$	—	$	(1.8)	$	(1.8)
Total net derivative position	$	10.8	$	(1.8)	$	9.0

	December 31, 2021
	Foreign
	Exchange		Interest		Cross
Balance Sheet	Forward		Rate		Currency
Classification	Contracts		Swaps		Swaps		Total
Asset Derivatives:
Accounts receivable, net of allowance	$	2.3	$	—	$	—	$	2.3
Gross derivative asset position		2.3		—		—		2.3
Less: Counterparty netting		(0.1)		—		—		(0.1)
Net derivative asset position	$	2.2	$	—	$	—	$	2.2
Liability Derivatives:
Accounts payable	$	(1.3)	$	(2.2)	$	(17.4)	$	(20.9)
Gross derivative liability position		(1.3)		(2.2)		(17.4)		(20.9)
Less: Counterparty netting		0.1		—		—		0.1
Net derivative liability position	$	(1.2)	$	(2.2)	$	(17.4)	$	(20.8)
Total net derivative position	$	1.0	$	(2.2)	$	(17.4)	$	(18.6)