v3.25.3
Derivative Instruments (Tables)
9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Foreign currency forward contracts that were entered into to hedge forecasted revenue
The notional amount of foreign currency forward contracts and foreign currency options that were entered into to hedge forecasted revenue and operating expense is summarized as follows:
Notional Amount
(In millions)As of September 30, 2025As of December 31, 2024
Euro$1,524.8 $1,062.6 
British pound35.0 133.8 
Swiss franc68.0 — 
Canadian dollar9.9 38.6 
Total foreign currency forward contracts and options$1,637.7 $1,235.0 
Derivative Instruments, Unrealized Gain (Loss)
The pre-tax portion of the fair value of these foreign currency forward contracts and foreign currency options that were included in AOCI in total equity is summarized as follows:
(In millions)As of September 30, 2025As of December 31, 2024
Unrealized gains$9.5 $50.6 
Unrealized (losses)(112.9)(0.3)
Net unrealized gains (losses)$(103.4)$50.3 
Summary of the effect of cash flow derivatives designated as hedging instruments on the condensed consolidated statements of income
The following tables summarize the effect of foreign currency forward contracts and forward currency options designated as hedging instruments in our condensed consolidated statements of income:
For the Three Months Ended September 30,
Net Gains/(Losses)
Reclassified from AOCI into Operating Income (in millions)
Net Gains/(Losses) Excluded from Effectiveness Testing and
Recognized in Operating Income (in millions)
Location20252024Location20252024
Revenue$(29.1)$(7.6)Revenue$8.0 $2.9 
Operating expense6.7 (1.5)Operating expense— 0.3 
For the Nine Months Ended September 30,
Net Gains/(Losses)
Reclassified from AOCI into Operating Income (in millions)
Net Gains/(Losses) Excluded from Effectiveness Testing and
Recognized in Operating Income (in millions)
Location20252024Location20252024
Revenue$(41.1)$2.9 Revenue$7.6 $4.0 
Operating expense14.0 (8.5)Operating expense(1.8)(1.6)
Summary of fair value and presentation of derivatives
The following table summarizes the fair value and presentation in our condensed consolidated balance sheets of our outstanding derivative instruments, including those designated as hedging instruments:
(In millions)Balance Sheet LocationAs of September 30, 2025As of December 31, 2024
Cash Flow Hedging Instruments:
Asset derivative instrumentsOther current assets$7.8 $58.4 
Liability derivative instrumentsAccrued expense and other87.3 0.3 
Other long-term liabilities10.2 — 
Other Derivative Instruments:
Asset derivative instrumentsOther current assets1.8 4.1 
Liability derivative instrumentsAccrued expense and other1.8 11.4