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Financial Instruments, Risk Management and Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of derivative instruments in statement of financial position, fair value
The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments.
March 31, 2020
Gross Amount of Derivatives
(in Millions)Designated as Cash Flow HedgesNot Designated as Hedging InstrumentsTotal Gross Amounts
Gross Amounts Offset in the Condensed Consolidated Balance Sheet (3)
Net Amounts
Foreign exchange contracts$52.4  $21.3  $73.7  $(8.2) $65.5  
Total derivative assets (1)
$52.4  $21.3  $73.7  $(8.2) $65.5  
Foreign exchange contracts$(27.2) $—  $(27.2) $8.2  $(19.0) 
Interest rate contracts(5.3) —  (5.3) —  (5.3) 
Total derivative liabilities (2)
$(32.5) $—  $(32.5) $8.2  $(24.3) 
Net derivative assets (liabilities)$19.9  $21.3  $41.2  $—  $41.2  
December 31, 2019
Gross Amount of Derivatives
(in Millions)Designated as Cash Flow HedgesNot Designated as Hedging InstrumentsTotal Gross Amounts
Gross Amounts Offset in the Condensed Consolidated Balance Sheet (3)
Net Amounts
Foreign exchange contracts$8.0  $0.3  $8.3  $(8.1) $0.2  
Total derivative assets (1)
$8.0  $0.3  $8.3  $(8.1) $0.2  
Foreign exchange contracts$(12.1) $(4.2) $(16.3) $8.1  $(8.2) 
Interest rate contracts(0.9) —  (0.9) —  (0.9) 
Total derivative liabilities (2)
$(13.0) $(4.2) $(17.2) $8.1  $(9.1) 
Net derivative assets (liabilities)$(5.0) $(3.9) $(8.9) $—  $(8.9) 
____________________
(1) Net balance is included in "Prepaid and other current assets" in the condensed consolidated balance sheets.
(2) Net balance is included in "Accrued and other liabilities" in the condensed consolidated balance sheets.
(3) Represents net derivatives positions subject to master netting arrangements.
Schedule of derivative instruments, gain (loss) in statement of financial performance
The tables below summarize the gains or losses related to our cash flow hedges and derivatives not designated as hedging instruments.
Derivatives in Cash Flow Hedging Relationships
Contracts
Foreign ExchangeInterest rateTotal
Three Months Ended March 31,
(in Millions)202020192020201920202019
Unrealized hedging gains (losses) and other, net of tax$29.7  $6.9  $(2.2) $(6.0) $27.5  $0.9  
Reclassification of deferred hedging (gains) losses, net of tax (1)
(9.8) (3.6) (0.5) —  (10.3) (3.6) 
Total derivative instrument impact on comprehensive income, net of tax$19.9  $3.3  $(2.7) $(6.0) $17.2  $(2.7) 
___________________
(1)See Note 15 for classification of amounts within the condensed consolidated statements of income (loss).
Derivatives Not Designated as Hedging Instruments
Amount of Pre-tax Gain (Loss) 
Recognized in Income on Derivatives (1)
Three Months Ended March 31,
(in Millions)Location of Gain or (Loss)
Recognized in Income on Derivatives
20202019
Foreign exchange contractsCost of sales and services$11.0  $(2.9) 
Total$11.0  $(2.9) 
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(1)Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item.
Schedule of fair value, assets and liabilities measured on recurring basis
The following tables present our fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets. During the periods presented there were no transfers between fair value hierarchy levels.
(in Millions)March 31, 2020Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Assets
Derivatives – Foreign exchange (1)
$65.5  $—  $65.5  $—  
Other (2)
17.9  17.9  —  —  
Total assets$83.4  $17.9  $65.5  $—  
Liabilities
Derivatives – Foreign exchange (1)
$19.0  $—  $19.0  $—  
Derivatives – Interest rate (1)
5.3  —  5.3  —  
Other (3)
27.1  26.0  1.1  —  
Total liabilities$51.4  $26.0  $25.4  $—  
(in Millions)December 31, 2019Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Assets
Derivatives – Foreign exchange (1)
$0.2  $—  $0.2  $—  
Other (2)
20.2  20.2  —  —  
Total assets$20.4  $20.2  $0.2  $—  
Liabilities
Derivatives – Foreign exchange (1)
$8.2  $—  $8.2  $—  
Derivatives – Interest rate (1)
0.9  —  0.9  —  
Other (3)
32.8  29.7  3.1  —  
Total liabilities$41.9  $29.7  $12.2  $—  
____________________
(1)See the Fair Value of Derivative Instruments table within this Note for classification on the condensed consolidated balance sheets.
(2)Consists of a deferred compensation arrangement, through which we hold various investment securities, recognized on our balance sheets. Both the asset and liability are recorded at fair value. Asset amounts are included in "Other assets including long-term receivables, net" in the condensed consolidated balance sheets.
(3)Primarily consists of a deferred compensation arrangement recognized on our balance sheets. Both the asset and liability are recorded at fair value. Liability amounts are included in "Other long-term liabilities" in the condensed consolidated balance sheets.