DERIVATIVES AND HEDGING

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING

DERIVATIVES AND HEDGINGIn February 2020, the Company entered into two U.S. Dollar to Euro cross currency swap contracts to hedge the Company’s net investment in its European operations. The contracts, which were designated as net investment hedges, have a notional value of $500.0 million and $244.0 million, respectively, with maturity dates of June 1, 2024 and November 15, 2021, respectively. During the term of the $500.0 million contract, the Company will pay fixed-rate interest in Euros and receive fixed-rate interest in U.S. Dollars, thereby effectively converting a portion of the Company’s U.S. Dollar denominated fixed-rate debt to Euro denominated fixed-rate debt. During the term of the $244.0 million contract, the Company paid floating-rate interest in Euros and received floating-rate interest in U.S. Dollars. Prior to the maturity of the $244.0 million floating-rate contract in November 2021, the Company entered into a new $244.0 million U.S. Dollar to Euro cross currency swap contract with a maturity date of June 1, 2027 to effectively amend and extend the original contract. During the term of this $244.0 million fixed-rate contract, which is designated as a net investment hedge, the Company will pay fixed-rate interest in Euros and receive fixed-rate interest in U.S. Dollars, thereby effectively converting a portion of the Company’s U.S. Dollar denominated fixed-rate debt to Euro denominated fixed-rate debt.

On May 9, 2019, the Company entered into a U.S. Dollar to Euro cross currency swap contract with a total notional amount of $400.0 million to hedge the Company’s net investment in its European operations. This contract was designated as a net investment hedge and had a maturity date of January 15, 2022. During the term of the contract, the Company paid fixed-rate interest in Euros and received fixed-rate interest in U.S. Dollars, thereby effectively converting a portion of the Company’s U.S. Dollar denominated fixed-rate debt to Euro denominated fixed-rate debt. In February 2020, the Company settled its $400.0 million U.S. Dollar to Euro cross currency swap contract. At the time of the settlement, an unrealized gain of $11.8 million, net of tax, was recognized in AOCI.

The following table summarizes the balance sheet location of the cross currency swaps. See Note 16 for additional information on the fair value of these contracts.

	December 31,		December 31,		December 31,
	2021		2020		2019
Other assets	$	—	$	—	$	1.5
Other accruals	—		31.0		—
Other long-term liabilities	36.5		54.8		—

The changes in fair value of the cross currency swap contracts are recognized in the foreign currency translation adjustments component of AOCI. The following table summarizes the unrealized gains (losses) for the years ended December 31:

	2021		2020		2019
Unrealized gain (loss)	$	49.3	$	(71.7)	$	1.5
Tax effect	(12.2)		17.7		(0.4)
Unrealized gain (loss), net of taxes	$	37.1	$	(54.0)	$	1.1