Derivatives and Hedging

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

Derivatives and Hedging

Net Investment Hedges

We have designated certain derivative instruments and a portion of our foreign currency denominated debt, a non-derivative financial instrument, as hedges of the foreign currency exchange rate exposure of our Euro-denominated net investment in a European subsidiary. We apply the spot method to assess the hedge effectiveness of the derivative instruments and this assessment for each instrument excludes the initial value related to the difference at contract inception between the foreign exchange spot rate and the forward rate (i.e., the forward points). The initial value of this excluded component is recognized as a reduction to interest expense in a systematic and rational manner over the term of the derivative instrument. All other changes in value for the net investment hedges are included in AOCL within foreign currency translation and would only be reclassified to earnings if the European subsidiary were liquidated, or otherwise disposed. Upon settlement, the cash paid or received generally is reflected in investing activities in the statement of cash flows.

The following table summarizes the location and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships:

		December 31, 2022				December 31, 2021
Instrument	Balance sheet location	Notional		Balance		Notional		Balance
Net investment hedges:
Forward contracts	Prepaid expenses and other current assets	$	606,950	$	46,670	$	925,810	$	73,819
Forward contracts	Other current liabilities	$	106,800	$	3,064	$	235,180	$	2,935
Foreign currency debt	Long-term debt	€	700,000	$	749,280	€	700,000	$	792,820

The table below presents pre-tax gains and losses related to cash flow hedges and net investment hedges:

	Gain (Loss) Recognized in AOCL Before Reclassifications						Gain Recognized in Interest Expense For Excluded Components
	2022		2021		2020		2022		2021		2020
Year Ended December 31,
Cash Flow Hedges:
Interest rate contract	$	—	$	—	$	(29,464)	$	—	$	—	$	—
Net Investment Hedges:
Forward contracts	103,240		56,362		(85,390)		27,923		26,295		27,146
Foreign currency debt	43,540		68,250		(77,070)		—		—		—
Total	$	146,780	$	124,612	$	(191,924)	$	27,923	$	26,295	$	27,146