Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign currency forward contracts that were entered into to hedge forecasted revenue

The notional amount of foreign currency forward contracts and foreign currency options that were entered into to hedge forecasted revenue and operating expense is summarized as follows:

	Notional Amount
(In millions)	As of September 30, 2024		As of December 31, 2023
Euro	$	1,569.2	$	1,169.0
British pound	32.9		—
Swiss franc	72.1		—
Canadian dollar	12.7		—
Total foreign currency forward contracts and options	$	1,686.9	$	1,169.0

Summary of the effect of cash flow derivatives designated as hedging instruments on the condensed consolidated statements of income

The following tables summarize the effect of foreign currency forward contracts and forward currency options designated as hedging instruments in our condensed consolidated statements of income (in millions):

For the Three Months Ended September 30,
Net Gains/(Losses) Reclassified from AOCI into Operating Income					Net Gains/(Losses) Excluded from Effectiveness Testing and Recognized in Operating Income
Location	2024		2023		Location	2024		2023
Revenue	$	(7.6)	$	(1.7)	Revenue	$	2.9	$	(2.1)
Operating expense	(1.5)		1.2		Operating expense	0.3		0.9
For the Nine Months Ended September 30,
Net Gains/(Losses) Reclassified from AOCI into Operating Income					Net Gains/(Losses) Excluded from Effectiveness Testing and Recognized in Operating Income
Location	2024		2023		Location	2024		2023
Revenue	$	2.9	$	18.3	Revenue	$	4.0	$	(1.5)
Operating expense	(8.5)		2.1		Operating expense	(1.6)		(2.0)

Summary of fair value and presentation of derivatives

The following table summarizes the fair value and presentation in our condensed consolidated balance sheets of our outstanding derivative instruments, including those designated as hedging instruments:

(In millions)	Balance Sheet Location	As of September 30, 2024		As of December 31, 2023
Cash Flow Hedging Instruments:
Asset derivative instruments	Other current assets	$	0.9	$	0.3
	Investments and other assets	0.1		—
Liability derivative instruments	Accrued expense and other	29.2		26.5
	Other long-term liabilities	2.4		—
Other Derivative Instruments:
Asset derivative instruments	Other current assets	5.1		11.6
Liability derivative instruments	Accrued expense and other	2.4		5.1

Derivative Instruments, Unrealized Gain (Loss)

The pre-tax portion of the fair value of these foreign currency forward contracts and foreign currency options that were included in AOCI in total equity is summarized as follows:

(In millions)	As of September 30, 2024		As of December 31, 2023
Unrealized gains	$	1.5	$	—
Unrealized (losses)	(43.0)		(34.8)
Net unrealized gains (losses)	$	(41.5)	$	(34.8)