Derivative Instruments and Risk Management

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Risk Management

Changes in interest rates, foreign exchange rates, the price of the Common Stock and commodity prices expose the Company to market risk. The Company manages these risks by the use of derivative instruments, such as cash flow and fair value hedges, diesel and commodity hedge contracts, equity derivatives and foreign exchange forward contracts. The Company does not use derivatives for trading or speculative purposes. Refer to Note 3 in the Form 10-K for a discussion of each of the Company’s derivative instruments in effect as of December 31, 2021.

The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table:


	Notional		Notional
	Amount		Amount
	September 30, 2022		December 31, 2021
Derivatives designated as hedging instruments
Foreign exchange contracts	$	219.9	$	216.3
Interest rate lock agreements	$	500.0	$	300.0
Diesel fuel contracts	3.9 gallons		0.0 gallons
Commodities contracts	8.6 pounds		72.1 pounds
Derivatives not designated as hedging instruments
Foreign exchange contracts	$	5.9	$	5.9
Equity derivatives	$	23.8	$	28.9

Excluding the interest rate lock agreements, the fair values and amount of gain (loss) recognized in income and Other Comprehensive Income (“OCI”) associated with the derivative instruments disclosed above did not have a material impact on the Company’s condensed consolidated financial statements during the three and nine months ended September 30, 2022. The interest rate lock agreements outstanding at December 31, 2021 were settled in the second quarter of 2022 for a loss of $4.2, which will be amortized into interest expense over ten years. The Company has entered into additional interest rate lock agreements in the third quarter of 2022 which are used to hedge the risk of changes in the interest payments associated with the anticipated issuance of debt in the fourth quarter of 2022.