Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities (Tables)

v3.24.1.u1
Derivative Instruments and Hedging Activities (Tables)
3 Months Ended
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Gains (Losses) Relating to Derivative Instruments Recorded in Other Comprehensive Loss

The following table summarizes gains (losses) relating to derivative instruments recorded in other comprehensive income (loss) during the three months ended March 31, 2024 and 2023:

 

 

 

Amount of Loss Recognized in Other Comprehensive (Loss) Income

 

 

 

Three Months Ended

 

 

 

March 31,
2024

 

 

March 31,
2023

 

 

 

(in millions)

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

Foreign exchange currency contracts relating to inventory and intercompany management fee hedges

 

$

(1.8

)

 

$

(4.6

)

Effect of Cash Flow Hedging Relationships on Condensed Consolidated Statements of Income

The effect of cash flow hedging relationships on the Company’s condensed consolidated statements of income for the three months ended March 31, 2024 and 2023 was as follows:

 

 

 

Location and Amount of (Loss) Gain Recognized in Income on Cash Flow Hedging Relationships

 

 

 

Three Months Ended

 

 

 

March 31,
2024

 

 

March 31,
2023

 

 

 

Cost of sales

 

 

Selling, general, and administrative expenses

 

 

Interest expense, net

 

 

Cost of sales

 

 

Selling, general, and administrative expenses

 

 

Interest expense, net

 

 

 

(in millions)

 

Total amounts presented in the condensed consolidated statements of income

 

$

285.0

 

 

$

492.2

 

 

$

37.9

 

 

$

298.6

 

 

$

475.9

 

 

$

39.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts relating to inventory hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of loss reclassified from accumulated other comprehensive loss to income

 

 

(0.7

)

 

 

 

 

 

 

 

 

(2.9

)

 

 

 

 

 

 

Amount of loss excluded from assessment of effectiveness recognized in income

 

 

(1.0

)

 

 

 

 

 

 

 

 

(1.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange currency contracts relating to intercompany management fee hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of loss reclassified from accumulated other comprehensive loss to income

 

 

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

(0.1

)

 

 

 

Amount of gain excluded from assessment of effectiveness recognized in income

 

 

 

 

 

0.1

 

 

 

 

 

 

 

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain reclassified from accumulated other comprehensive loss to income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.3

 

Amount of gain excluded from assessment of effectiveness recognized in income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains Relating to Derivative Instruments Not Designated As Hedging Instruments Recorded to Income

The following table summarizes gains (losses) recorded to income relating to derivative instruments not designated as hedging instruments during the three months ended March 31, 2024 and 2023:

 

 

 

Amount of Loss Recognized in Income

 

 

 

 

 

Three Months Ended

 

 

 

 

 

March 31,
2024

 

 

March 31,
2023

 

 

Location of Loss Recognized in Income

 

 

(in millions)

 

 

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

Foreign exchange currency contracts

 

$

(0.7

)

 

$

(3.5

)

 

Selling, general, and administrative expenses