Derivative Financial Instruments and Hedging Activities (Tables)
|
9 Months Ended |
Sep. 30, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
Schedule of Notional Amounts of Outstanding Derivative Positions |
The aggregate equivalent U.S. dollar notional amount of foreign exchange derivative customer contracts held by the Company as of September 30, 2023 and December 31, 2022 (in millions) is presented in the following table: | | | | | | | | | | | | | Notional | | September 30, 2023 | | December 31, 2022 | Foreign exchange contracts: | | | | Swaps | $ | 194.3 | | | $ | 160.9 | | Futures and forwards | 19,841.1 | | | 15,159.4 | | Written options | 19,671.8 | | | 13,701.9 | | Purchased options | 15,983.3 | | | 11,474.2 | | Total | $ | 55,690.5 | | | $ | 40,496.4 | |
As of September 30, 2023, the Company had the following outstanding interest rate swap derivatives that qualify as hedging instruments within designated cash flow hedges of variable interest rate risk (in millions): | | | | | | | | | | | | | | | Notional Amount | | Fixed Rates | | Maturity Date | $500 | | 2.50% | | 12/19/2023 | $250 | | 4.01% | | 7/31/2025 | $250 | | 4.02% | | 7/31/2025 | $500 | | 3.80% | | 1/31/2026 | $250 | | 3.71% | | 7/31/2026 | $250 | | 3.72% | | 7/31/2026 | $100 | | 4.35% | | 7/31/2026 | $250 | | 4.40% | | 7/31/2026 | $250 | | 4.40% | | 7/31/2026 | $400 | | 4.33% | | 7/31/2026 | $250 | | 4.29% | | 1/31/2027 | $250 | | 4.29% | | 1/31/2027 | $250 | | 4.19% | | 7/31/2027 | $250 | | 4.19% | | 7/31/2027 |
|
Schedule of Derivative Instruments at Fair Value |
The following table summarizes the fair value of derivatives reported in the Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | | | | | Fair Value, Gross | | Fair Value, Net | | | | Derivative Assets | | Derivative Liabilities | | Derivative Assets | | Derivative Liabilities | | | | | Derivatives - undesignated: | | | | | | | | | | | | Foreign exchange contracts | $ | 607.7 | | | $ | 557.6 | | | $ | 317.1 | | | $ | 267.0 | | | | | | Cash collateral | 46.1 | | | 187.1 | | | 46.1 | | | 187.1 | | | | | | Total net of cash collateral | $ | 561.6 | | | $ | 370.5 | | | $ | 271.0 | | | $ | 79.9 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | | | | Fair Value, Gross | | Fair Value, Net | | | | Derivative Assets | | Derivative Liabilities | | Derivative Assets | | Derivative Liabilities | | | | | Derivatives - undesignated: | | | | | | | | | | | | Foreign exchange contracts | $ | 582.2 | | | $ | 540.0 | | | $ | 266.9 | | | $ | 224.7 | | | | | | Cash collateral | 56.1 | | | 148.2 | | | 56.1 | | | 148.2 | | | | | | Total net of cash collateral | $ | 526.1 | | | $ | 391.8 | | | $ | 210.8 | | | $ | 76.5 | | | | | |
|
Schedule of Derivative Assets at Fair Value |
The following table presents the Company’s spot trade assets and liabilities at their fair value at September 30, 2023 and December 31, 2022 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | Gross | | Offset on the Balance Sheet | | Net | | Gross | | Offset on the Balance Sheet | | Net | Assets | | | | | | | | | | | | Accounts Receivable | $ | 3,824.6 | | | $ | (3,647.4) | | | $ | 177.2 | | | $ | 2,409.8 | | | $ | (2,266.0) | | | $ | 143.8 | | Liabilities | | | | | | | | | | | | Accounts Payable | $ | 3,736.9 | | | $ | (3,647.4) | | | $ | 89.5 | | | $ | 2,332.5 | | | $ | (2,266.0) | | | $ | 66.5 | | The following table presents the fair value of the Company’s derivative assets and liabilities, as well as their classification on the accompanying Consolidated Balance Sheets, as of September 30, 2023 and December 31, 2022 (in millions): | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | Balance Sheet Classification | | Fair Value | | | | | | | Derivative Assets | Prepaid expenses and other current assets | | $ | 222.3 | | | $ | 204.9 | | Derivative Assets | Other assets | | $ | 94.8 | | | $ | 62.0 | | Derivative Liabilities | Other current liabilities | | $ | 188.8 | | | $ | 184.1 | | Derivative Liabilities | Other noncurrent liabilities | | $ | 78.2 | | | $ | 40.6 | |
|
Schedule of Derivative Liabilities at Fair Value |
The following table presents the Company’s spot trade assets and liabilities at their fair value at September 30, 2023 and December 31, 2022 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | Gross | | Offset on the Balance Sheet | | Net | | Gross | | Offset on the Balance Sheet | | Net | Assets | | | | | | | | | | | | Accounts Receivable | $ | 3,824.6 | | | $ | (3,647.4) | | | $ | 177.2 | | | $ | 2,409.8 | | | $ | (2,266.0) | | | $ | 143.8 | | Liabilities | | | | | | | | | | | | Accounts Payable | $ | 3,736.9 | | | $ | (3,647.4) | | | $ | 89.5 | | | $ | 2,332.5 | | | $ | (2,266.0) | | | $ | 66.5 | | The following table presents the fair value of the Company’s derivative assets and liabilities, as well as their classification on the accompanying Consolidated Balance Sheets, as of September 30, 2023 and December 31, 2022 (in millions): | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | Balance Sheet Classification | | Fair Value | | | | | | | Derivative Assets | Prepaid expenses and other current assets | | $ | 222.3 | | | $ | 204.9 | | Derivative Assets | Other assets | | $ | 94.8 | | | $ | 62.0 | | Derivative Liabilities | Other current liabilities | | $ | 188.8 | | | $ | 184.1 | | Derivative Liabilities | Other noncurrent liabilities | | $ | 78.2 | | | $ | 40.6 | |
|
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location |
The following table presents the fair value of the Company’s interest rate swap contracts, as well as their classification on the accompanying Consolidated Balance Sheets, as of September 30, 2023 and December 31, 2022 (in millions). See Note 3 for additional information on the fair value of the Company’s swap contracts. | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | Balance Sheet Classification | | Fair Value | Derivatives designated as cash flow hedges: | | | | | | Swap contracts | Prepaid expenses and other current assets | | $ | 45.5 | | | $ | 12.0 | | Swap contracts | Other assets | | $ | 8.6 | | | $ | — | | | | | | | | Swap contracts | Other noncurrent liabilities | | $ | (6.5) | | | $ | — | |
|