The tables below present information regarding the fair values of derivative instruments and the effects of derivative instruments on our consolidated financial statements:
Derivatives not designated as hedging instruments (economic hedges): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset Derivatives | | Liability Derivatives | | | | | Fair Value | | | | | Fair Value | | | Balance sheet classification | | June 30
2026 | | December 31
2025 | | Balance sheet classification | | | June 30
2026 | | December 31
2025 | | | Foreign currency contracts | Other current assets | | $ | 3.8 | | | $ | 5.5 | | | Other current liabilities | | | $ | 12.3 | | | $ | 2.9 | | | | TRS | Other current assets | | 94.3 | | | 7.2 | | | Other current liabilities | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Loss (Gain) Recognized in Income | Three months ended June 30 | | Six months ended June 30 | | 2026 | | 2025 | | 2026 | | 2025 | | Foreign currency contracts | | | | | | | | | Cost of sales | $ | 3.1 | | | $ | — | | | $ | 5.3 | | | $ | (0.3) | | | SG&A | 3.7 | | | (0.4) | | | 9.3 | | | 2.2 | | | | | | | | | | TRS (see note 8) | | | | | | | | | Cost of sales | (48.4) | | | (40.6) | | | (40.9) | | | (33.1) | | | SG&A | (55.7) | | | (56.8) | | | (46.2) | | | (45.2) | | | | | | | | | |
Derivatives designated as cash flow hedges: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset Derivatives | | | | Liability Derivatives | | | | | | | Fair Value | | | | | Fair Value | | | | | Balance sheet classification | | June 30
2026 | December 31
2025 | | | | Balance sheet classification | | | June 30
2026 | December 31
2025 | | | | Foreign currency contracts (i) | Other current assets | | $ | 3.6 | | $ | 12.1 | | | | | Other current liabilities | | | $ | 21.4 | | $ | 1.5 | | | | | Interest rate swaps (ii) | Other current assets | | 1.3 | | — | | | | | Other current liabilities | | | — | | — | | | | | Interest rate swaps (ii) | Other non-current assets | | 2.3 | | 0.4 | | | | | Other non-current liabilities | | | — | | 2.8 | | | | |
(i) In the next twelve months, we estimate that $13.8 of existing losses, net of tax, will be reclassified from AOCI into our consolidated statements of operations. The maximum length of time we hedge our exposure to the variability in future cash flows for forecasted foreign currency transactions is 12 months. (ii) In the next twelve months, we estimate that $0.9 of existing gains, net of tax, will be reclassified from AOCI into our consolidated statements of operations. The maximum length of time that we hedge our exposure to the variability in future cash flows for forecasted interest payments is 3 years.
| | | | | | | | | | | | | | | | | | | | | | | | Loss (Gain) Reclassified from AOCI into Income | Three months ended June 30 | | Six months ended June 30 | (see note 9 for activities recorded in AOCI for the periods indicated) | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | Foreign currency contracts | | | | | | | | | | | | | | | | | Cost of sales | $ | 0.7 | | | $ | (2.6) | | | $ | (6.0) | | | $ | 1.1 | | | SG&A | 0.8 | | | (1.6) | | | 1.7 | | | (0.7) | | | | | | | | | | | | | | | | | | | Interest rate swaps | | | | | | | | | Finance costs | $ | (0.1) | | | $ | (1.9) | | | $ | (0.3) | | | $ | (3.7) | | Miscellaneous expense | — | | | 1.3 | | | — | | | 2.6 | | | | | | | | | |
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