Derivative Instruments and Hedging Activities (Tables)
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3 Months Ended |
Mar. 31, 2025 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Amounts Recorded On Balance Sheet Related To Cumulative Basis Adjustments For Fair Value Hedges |
As of March 31, 2025 and December 31, 2024, the following amounts were recorded on our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges (in millions):
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Carrying Amount of the Hedged Liabilities |
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Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities |
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Balance Sheet Line Item |
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March 31, 2025 |
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December 31, 2024 |
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March 31, 2025 |
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December 31, 2024 |
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Long-term debt |
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$ |
860.0 |
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$ |
837.6 |
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$ |
(136.3 |
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$ |
(158.6 |
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| Gross Unrealized Losses from Derivative Instruments |
Derivative instruments designated as cash flow hedges had the following effects, before taxes, on AOCI and net earnings on our condensed consolidated statements of earnings, condensed consolidated statements of comprehensive income and condensed consolidated balance sheets (in millions):
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Amount of Gain (Loss) |
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Amount of Gain (Loss) |
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Recognized in AOCI |
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Reclassified from AOCI |
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Three Months Ended |
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Three Months Ended |
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March 31, |
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Location on |
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March 31, |
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Derivative Instrument |
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2025 |
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2024 |
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Statements of Earnings |
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2025 |
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2024 |
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Foreign exchange
forward contracts |
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$ |
(32.8 |
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$ |
43.4 |
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Cost of products sold |
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$ |
21.0 |
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$ |
22.0 |
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Forward starting
interest rate swaps |
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- |
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- |
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Interest expense, net |
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(0.2 |
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(0.2 |
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$ |
(32.8 |
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$ |
43.4 |
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$ |
20.8 |
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$ |
21.8 |
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| Effects of Fair Value, Cash Flow and Net Investment Hedge Accounting on Consolidated Statements of Earnings |
The following table presents the effect of fair value, cash flow and net investment hedge accounting on our condensed consolidated statements of earnings (in millions):
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Location and Amount of Gain/(Loss) Recognized in Income on Fair Value, Cash Flow and Net Investment Hedging Relationships |
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Three Months Ended |
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Three Months Ended |
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March 31, 2025 |
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March 31, 2024 |
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Cost of |
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Interest |
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Cost of |
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Interest |
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Products |
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Expense, |
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Products |
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Expense, |
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Sold |
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Net |
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Sold |
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Net |
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Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded |
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$ |
549.8 |
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$ |
(66.2 |
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$ |
512.3 |
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$ |
(50.7 |
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The effects of fair value, cash flow and net investment hedging: |
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Loss on fair value hedging
relationships |
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Interest rate swaps |
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- |
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(8.0 |
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- |
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(10.6 |
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Gain (loss) on cash flow hedging
relationships |
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Foreign exchange forward contracts |
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21.0 |
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- |
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22.0 |
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- |
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Forward starting interest rate swaps |
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- |
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(0.2 |
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- |
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(0.2 |
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Gain on net investment hedging
relationships |
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Cross-currency interest rate swaps |
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- |
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5.3 |
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- |
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8.2 |
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| Derivative Instruments Not Designated as Hedging Instruments |
The following gains (losses) from these derivative instruments were recognized on our condensed consolidated statements of earnings (in millions):
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Three Months Ended |
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Location on |
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March 31, |
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Derivative Instrument |
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Statements of Earnings |
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2025 |
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2024 |
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Foreign exchange forward contracts |
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Other income (expense), net |
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$ |
(2.6 |
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$ |
8.4 |
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| Fair Value of Derivative Instruments on Gross Basis |
The fair value of derivative instruments on a gross basis is as follows (in millions):
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As of March 31, 2025 |
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As of December 31, 2024 |
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Balance |
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Balance |
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Sheet |
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Fair |
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Sheet |
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Fair |
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Location |
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Value |
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Location |
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Value |
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Asset Derivatives Designated as Hedges |
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Foreign exchange forward contracts |
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Other current assets |
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$ |
47.0 |
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Other current assets |
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$ |
82.3 |
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Cross-currency interest rate swaps |
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Other current assets |
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- |
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Other current assets |
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1.6 |
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Foreign exchange forward contracts |
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Other assets |
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8.8 |
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Other assets |
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24.5 |
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Cross-currency interest rate swaps |
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Other assets |
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34.3 |
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Other assets |
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48.7 |
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Total asset derivatives |
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$ |
90.1 |
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$ |
157.1 |
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Asset Derivatives Not Designated as Hedges |
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Foreign exchange forward contracts |
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Other current assets |
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$ |
- |
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Other current assets |
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$ |
7.1 |
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Liability Derivatives Designated as Hedges |
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Foreign exchange forward contracts |
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Other current liabilities |
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$ |
13.3 |
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Other current liabilities |
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$ |
13.8 |
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Cross-currency interest rate swaps |
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Other current liabilities |
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12.8 |
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Other current liabilities |
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12.0 |
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Foreign exchange forward contracts |
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Other long-term liabilities |
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5.8 |
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Other long-term liabilities |
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5.3 |
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Cross-currency interest rate swaps |
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Other long-term liabilities |
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- |
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Other long-term liabilities |
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2.2 |
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Interest rate swaps |
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Other long-term liabilities |
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136.3 |
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Other long-term liabilities |
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158.6 |
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Total liability derivatives |
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$ |
168.2 |
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$ |
191.9 |
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Liability Derivatives Not Designated as Hedges |
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Foreign exchange forward contracts |
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Other current liabilities |
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$ |
- |
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Other current liabilities |
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$ |
6.1 |
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| Schedule of Effects of Master Netting Agreements on Condensed Consolidated Balance Sheets |
The table below presents the effects of our master netting agreements on our condensed consolidated balance sheets (in millions):
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As of March 31, 2025 |
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As of December 31, 2024 |
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Description |
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Location |
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Gross
Amount |
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Offset |
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Net Amount in
Balance Sheet |
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Gross
Amount |
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Offset |
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Net Amount in
Balance Sheet |
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Asset Derivatives |
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Cash flow hedges |
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Other current assets |
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$ |
47.0 |
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$ |
10.7 |
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$ |
36.3 |
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$ |
82.3 |
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$ |
12.6 |
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$ |
69.7 |
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Cash flow hedges |
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Other assets |
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8.8 |
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3.8 |
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5.0 |
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24.5 |
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4.7 |
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19.8 |
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Derivatives Not Designated as Hedges |
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Other current assets |
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- |
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- |
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- |
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7.1 |
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5.3 |
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1.8 |
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Liability Derivatives |
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Cash flow hedges |
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Other current liabilities |
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13.3 |
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10.7 |
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2.6 |
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13.8 |
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12.6 |
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1.2 |
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Cash flow hedges |
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Other long-term liabilities |
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5.8 |
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3.8 |
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2.0 |
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5.3 |
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4.7 |
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0.6 |
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Derivatives Not Designated as Hedges |
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Other current liabilities |
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- |
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- |
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- |
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6.1 |
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5.3 |
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0.8 |
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| Net Investment Hedge Gains Recognized on Condensed Consolidated Statements of Comprehensive Income |
The following net investment hedge gains (losses) were recognized on our condensed consolidated statements of comprehensive income (in millions):
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Amount of Gain (Loss) |
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Recognized in AOCI |
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Three Months Ended |
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March 31, |
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Derivative Instrument |
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2025 |
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2024 |
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Euro Notes |
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$ |
(75.7 |
) |
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$ |
24.4 |
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Cross-currency interest rate swaps |
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(22.6 |
) |
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46.1 |
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$ |
(98.3 |
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$ |
70.5 |
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