Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Accumulated Other Comprehensive Loss and Net Income Related to Derivatives

The following tables summarize the after-tax impact that changes in the fair value of derivatives designated as cash flow hedges had on accumulated other comprehensive loss and net income during the three months ended March 31, 2024 and 2023 (in millions):

			Recognized in Net Income
Three Months Ended March 31,	Gain (Loss) Recognized in Accumulated Other Comprehensive Loss		Classification of Gain (Loss)	Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income		Total Amount of the Line Item in the Condensed Consolidated Statements of Operations Containing Hedge Gains (Losses)
2024
Foreign currency contracts(1)	$	(1.2)	Cost of goods sold	$	(2.3)	$	2,158.9
Commodity contracts(2)	(0.3)		Cost of goods sold	—		$	2,158.9
Treasury rate locks	6.1		Interest expense, net	—		$	1.9
Total	$	4.6		$	(2.3)
2023
Foreign currency contracts	$	(1.9)	Cost of goods sold	$	(1.8)	$	2,478.6
Commodity contracts	0.9		Cost of goods sold	0.3		$	2,478.6
Total	$	(1.0)		$	(1.5)

____________________________________

(1) The outstanding contracts as of March 31, 2024 range in maturity through December 2024.

(2) The outstanding contracts as of March 31, 2024 range in maturity through June 2024.

    The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended March 31, 2024 (in millions):

	Before-Tax Amount		Income Tax Expense (Benefit)		After-Tax Amount
Accumulated derivative net losses as of December 31, 2023	$	(1.3)	$	(0.5)	$	(0.8)
Net changes in fair value of derivatives	6.8		2.2		4.6
Net losses reclassified from accumulated other comprehensive loss into income	2.6		0.3		2.3
Accumulated derivative net gains as of March 31, 2024	$	8.1	$	2.0	$	6.1

Schedule of Derivative Instruments

The following table summarizes the notional values of the instrument designated as a net investment hedge (in millions):

	Notional Amount as of
	March 31, 2024		December 31, 2023
Cross currency swap contract	$	300.0	$	300.0

    The following table summarizes the changes in the fair value of the cross currency swap contract designated as a net investment hedge during the three months ended March 31, 2024 and 2023 (in millions):

	Cross currency swap contract
	Gain (Loss) Recognized in Accumulated Other Comprehensive Loss for the Three Months Ended
	Before-Tax Amount		Income Tax Expense (Benefit)		After-Tax Amount
March 31, 2024	$	4.7	$	1.2	$	3.5
March 31, 2023	(1.0)		(0.2)		(0.8)

Schedule of Derivatives Not Designated as Hedging Instrument

The following table summarizes the results on net income of derivatives not designated as hedging instruments (in millions):

		Gain (Loss) Recognized in Net Income for the Three Months Ended
	Classification of Gain (Loss)	March 31, 2024		March 31, 2023
Foreign currency contracts	Other expense, net	$	(8.3)	$	11.2

Fair Value of Derivative Instruments

The table below sets forth the fair value of derivative instruments as of March 31, 2024 (in millions):

	Asset Derivatives as of March 31, 2024			Liability Derivatives as of March 31, 2024
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivative instruments designated as hedging instruments:
Foreign currency contracts	Other current assets	$	3.6	Other current liabilities	$	2.8
Commodity contracts	Other current assets	—		Other current liabilities	0.2
Cross currency swap contract	Other noncurrent assets	25.0		Other noncurrent liabilities	—
Derivative instruments not designated as hedging instruments:
Foreign currency contracts(1)	Other current assets	2.4		Other current liabilities	4.8
Total derivative instruments		$	31.0		$	7.8

__________________________________

(1) The outstanding contracts as of March 31, 2024 range in maturity through August 2024.

    The table below sets forth the fair value of derivative instruments as of December 31, 2023 (in millions):

	Asset Derivatives as of December 31, 2023			Liability Derivatives as of December 31, 2023
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivative instruments designated as hedging instruments:
Foreign currency contracts	Other current assets	$	1.3	Other current liabilities	$	1.2
Commodity contracts	Other current assets	—		Other current liabilities	—
Cross currency swap contract	Other noncurrent assets	20.3		Other noncurrent liabilities	—
Derivative instruments not designated as hedging instruments:
Foreign currency contracts(1)	Other current assets	17.1		Other current liabilities	12.8
Total derivative instruments		$	38.7		$	14.0

___________________________________

(1) The outstanding contracts as of December 31, 2023 range in maturity through February 2024.