v3.22.4
Derivatives and Hedging (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Outstanding Derivatives
Notional Amount
Fair Value of Derivative Assets(2)
Fair Value of Derivative Liabilities(2)
December 31, 2022December 31, 2021December 31, 2022December 31, 2021December 31, 2022December 31, 2021
Cash flow hedges:
Foreign exchange forward contracts$364.7 $360.3 $9.4 $5.6 $2.0 $1.0 
Cross-currency swaps(1)
549.7 1,346.8 15.8 — 2.2 80.9 
Interest rate swaps1,980.5 2,001.2 173.0 24.7 — 7.6 
Net investment hedges:
Cross-currency swaps(1)
704.6 — 20.3 — 0.7 — 
Total hedges$3,599.5 $3,708.3 $218.5 $30.3 $4.9 $89.5 
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(1) The notional values of the cross-currency swap have been translated from Euros to U.S. dollars at the foreign currency rates in effect at December 31, 2022 and 2021 of approximately 1.07 and 1.14, respectively.
(2) In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets and all derivative liabilities are recorded within accrued expenses and other current liabilities.
Summary of Gains (Losses) on Derivative Instruments
The following table summarizes the effect of our hedging relationships on AOCI:
Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss)
Year Ended December 31,
202220212020
Cash flow hedges:
Foreign exchange forward contracts(1)
$24.3 $16.3 $(17.6)
Cross-currency swap54.0 (15.5)16.2 
Interest rate swaps158.3 48.4 (4.9)
Net investment hedges:
Cross-currency swaps20.3 — — 
Total hedges$256.9 $49.2 $(6.3)
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(1) Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.
The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our hedging relationships:
Year Ended December 31,
202220212020
RevenueInterest ExpenseOther Income (Expense), NetRevenueInterest ExpenseOther Income (Expense), NetRevenueInterest ExpenseOther Income (Expense), Net
Cash flow hedges:
Foreign exchange forward contracts:
Reclassified from AOCI into income$5.3 $— $— $(8.9)$— $— $2.7 $— $— 
Cross-currency swaps:
Reclassified from AOCI into income(1)
— 14.9 41.5 — 27.3 100.6 — 28.9 (120.4)
Interest rate swaps:
Reclassified from AOCI into income— (5.0)— — (35.0)— — (25.6)— 
Net investment hedges:
Cross-currency swaps:
Reclassified from AOCI into income— 11.3 — — — — — — — 
Total hedges$5.3 $21.2 $41.5 $(8.9)$(7.7)$100.6 $2.7 $3.3 $(120.4)
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(1) The amounts reflected in other income (expense), net include $(41.3) million, $(101.8) million and $119.3 million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap during 2022, 2021 and 2020, respectively.