v3.26.1
Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Our risk management and derivative accounting policies are presented within Part II.—Item 8. Financial Statements, Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" and Note 10, "Derivative Instruments and Hedging Activities" in our Annual Report and did not significantly change during the six months ended June 30, 2026. As noted in Part II.—Item 8. Financial Statements, Note 10, "Derivative Instruments and Hedging Activities" in our Annual Report, due to the nature of our counterparty agreements and the fact that we are not subject to master netting arrangements, we are not able to net positions with the same counterparty and, therefore, present our derivative positions on a gross basis in our unaudited condensed consolidated balance sheets. Our significant types of derivatives and hedge positions have not changed materially since December 31, 2025.
Forward Starting Interest Rate Swaps Settlement
In 2018, we entered into forward starting interest rate swaps with a notional amount of $1.0 billion and a termination date of July 2026. The swaps had an effective date mirroring the terms of forecasted debt issuances. Under the agreements, we were required to early terminate these swaps at the time that we expected to issue the related forecasted debt. Over the life of the forward starting interest rate swaps, we accounted for the forward starting interest rate swaps as cash flow hedges with fair value gains and losses on the derivatives being recorded to AOCI. In conjunction with issuing our 2036 USD senior notes, we settled our forward starting interest rate swaps for a realized gain of $107.5 million which was recorded to AOCI and will be amortized as a benefit to interest expense over the term of the 2036 USD senior notes. See Note 7, "Debt" for additional information on the issuance of our 2036 USD senior notes.
Derivative Fair Value Measurements
We utilize market approaches to estimate the fair value of our derivative instruments by discounting anticipated future cash flows derived from the derivative's contractual terms and observable market interest, foreign exchange and commodity rates. The fair values of our derivatives also include credit risk adjustments to account for our counterparties' credit risk, as well as our own non-performance risk, as appropriate.
The table below summarizes our derivative assets (liabilities) that were measured at fair value as of June 30, 2026 and December 31, 2025. The fair value for all derivative contracts as of June 30, 2026 and December 31, 2025 were measured using significant other observable inputs, which are Level 2 inputs.
As of
June 30, 2026December 31, 2025
(In millions)
Forward starting interest rate swaps$— $83.7 
Foreign currency forwards4.3 0.4 
Commodity swaps and options57.0 52.1 
Total$61.3 $136.2 
Between June 30, 2026 and December 31, 2025, we had no significant transfers between Level 1 and Level 2. New derivative contracts transacted during the six months ended June 30, 2026, were all included in Level 2.
Results of Period Derivative Activity
The tables below include the results of our derivative activity on our unaudited condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025 and our unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2026 and June 30, 2025.
Fair Value of Derivative Instruments on the Unaudited Condensed Consolidated Balance Sheets (In millions):
As of June 30, 2026
Asset derivativesLiability derivatives
Notional amountBalance sheet locationFair valueBalance sheet locationFair value
Derivatives designated as hedging instruments
Foreign currency forwards$139.5 Other current assets$3.0 Accounts payable and other current liabilities$— 
Other non-current assets1.3 Other liabilities — 
Total derivatives designated as hedging instruments$4.3 $— 
Derivatives not designated as hedging instruments
Commodity swaps(1)
$774.8 Other current assets$67.3 Accounts payable and other current liabilities$(10.8)

Other non-current assets3.5 Other liabilities (6.3)
Commodity options(1)
$138.1 Other current assets3.3 Accounts payable and other current liabilities— 
Total derivatives not designated as hedging instruments$74.1 $(17.1)
As of December 31, 2025
Asset derivativesLiability derivatives
Notional amountBalance sheet locationFair valueBalance sheet locationFair value
Derivatives designated as hedging instruments
Forward starting interest rate swaps$1,000.0 Other current assets$83.7 Accounts payable and other current liabilities$— 
Foreign currency forwards$104.9 Other current assets0.9 Accounts payable and other current liabilities(0.3)
Other non-current assets— Other liabilities(0.2)
Total derivatives designated as hedging instruments$84.6 $(0.5)
Derivatives not designated as hedging instruments
Commodity swaps(1)
$442.1 Other current assets$55.9 Accounts payable and other current liabilities$(6.0)
Other non-current assets3.2 Other liabilities(1.0)
Commodity options(1)
$21.0 Other current assets0.1 Accounts payable and other current liabilities(0.1)
Total derivatives not designated as hedging instruments$59.2 $(7.1)
(1)Notional includes certain offsetting buy and sell positions, shown in terms of absolute value. Buy and sell positions are shown gross in the asset and/or liability position, as appropriate.
The Pretax Effect of Cash Flow Hedge Accounting on Other Comprehensive Income (Loss), Accumulated Other Comprehensive Income (Loss) and Income (Loss) (In millions):
Derivatives in cash flow hedge relationshipsAmount of gain
(loss) recognized
in OCI on derivatives		Location of gain (loss)
reclassified from AOCI into
income
Amount of gain
(loss) recognized
from AOCI into income on
derivatives
Three Months Ended June 30, 2026
Forward starting interest rate swaps$20.6 Interest income (expense), net$1.0 
Foreign currency forwards2.4 Cost of goods sold0.6 
Other non-operating income (expense), net(0.1)
Total$23.0 $1.5 
Three Months Ended June 30, 2025
Forward starting interest rate swaps$(3.2)Interest income (expense), net$(0.8)
Foreign currency forwards(7.7)Cost of goods sold0.9 
Other non-operating income (expense), net(0.1)
Total$(10.9)$— 
Derivatives in cash flow hedge relationshipsAmount of gain
(loss) recognized
in OCI on derivatives		Location of gain (loss)
reclassified from AOCI into
income		Amount of gain
(loss) recognized
from AOCI into income on
derivative
Six Months Ended June 30, 2026
Forward starting interest rate swaps$23.8 Interest income (expense), net$1.0 
Foreign currency forwards4.7 Cost of goods sold1.0 
Other non-operating income (expense), net(0.2)
Total$28.5 $1.8 
Six Months Ended June 30, 2025
Forward starting interest rate swaps$(24.3)Interest income (expense), net$(1.7)
Foreign currency forwards(8.1)Cost of goods sold2.7 
Other non-operating income (expense), net(0.4)
Total$(32.4)$0.6 
The Pretax Effect of Net Investment Hedge Accounting on Other Comprehensive Income (Loss), Accumulated Other Comprehensive Income (Loss) and Income (Loss) (In millions):
Net investment hedge relationships
Amount of gain
(loss) recognized
in AOCI(1)
Three Months Ended June 30, 2026
EUR 800 million 3.8% senior notes due June 2032
$10.4 
Three Months Ended June 30, 2025
EUR 800 million 3.8% senior notes due June 2032
$(77.3)
Net investment hedge relationships
Amount of gain
(loss) recognized
in AOCI (1)
Six Months Ended June 30, 2026
EUR 800 million 3.8% senior notes due June 2032
$25.8 
Six Months Ended June 30, 2025
EUR 800 million 3.8% senior notes due June 2032
$(114.1)
(1)The cumulative translation adjustments related to our net investment hedges remain in AOCI until the respective underlying net investment is sold or liquidated. During the three and six months ended June 30, 2026 and June 30, 2025, we did not reclassify any amounts related to our net investment hedges from AOCI into earnings whether due to ineffectiveness, a sale or liquidation.
As of June 30, 2026, we expect pretax net gains of approximately $14 million recorded in AOCI that will be reclassified into earnings within the next 12 months. Our foreign currency forwards, which are designated in cash flow hedge relationships, are typically hedged over a maximum length of approximately 3 years. In conjunction with issuing our 2036 USD senior notes, we settled our forward starting interest rate swaps for a realized gain of $107.5 million which was recorded to AOCI and will be amortized over the term of the 2036 USD senior notes.
The Effect of Derivatives Not Designated as Hedging Instruments on our Unaudited Condensed Consolidated Statements of Operations (In millions):
Derivatives not in hedging relationshipsLocation of gain (loss) recognized in
income on derivatives		Amount of gain (loss) recognized in
income on derivatives
Three Months Ended June 30, 2026
Commodity swapsCost of goods sold$(21.6)
Commodity optionsCost of goods sold(10.7)
Total$(32.3)
Three Months Ended June 30, 2025
Commodity swapsCost of goods sold$11.4 
Derivatives not in hedging relationshipsLocation of gain (loss) recognized in
income on derivatives		Amount of gain (loss) recognized in
income on derivatives
Six Months Ended June 30, 2026
Commodity swapsCost of goods sold$87.6 
Commodity optionsCost of goods sold(2.2)
Total$85.4 
Six Months Ended June 30, 2025
Commodity swapsCost of goods sold$32.8