Term of amortized interest expense, years

[Table of Contents](#i1c7c95a3a35c4e5dafc8b646de4a8ff7_7)  
Total borrowings at December 31, 2021 have scheduled maturities as follows:  


|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| (In millions) |  |
| 2022 | $ | —  |  |
| 2023 | 100.0  |  |
| 2024 | —  |  |
| 2025 | 100.1  |  |
| 2026 | —  |  |
| Thereafter | 1,000.0  |  |
| Total borrowings | $ | 1,200.1  |  |

  
  
8.    Derivative Instruments  
The Company enters into cash flow hedges from time to time to reduce the exposure to variability in certain expected future cash flows. The types of cash flow hedges the Company enters into include foreign currency exchange contracts designed to minimize the earnings impact on certain intercompany loans as well as interest rate exchange agreements designed to reduce the impact of interest rate changes on future interest expense that effectively convert a portion of floating-rate debt to fixed-rate debt.   
The effective portion of gains or losses on interest rate exchange agreements is reported in Accumulated other comprehensive loss in shareholders’ equity and reclassified into net income in the same period or periods in which the hedged transaction affects net income. The remaining gain or loss in excess of the cumulative change in the present value of future cash flows or the hedged item, if any, is recognized in net income during the period of change. See [Note 17](#i1c7c95a3a35c4e5dafc8b646de4a8ff7_139) for the amount of loss reclassified into net income for interest rate contracts for the years ended December 31, 2021, 2020 and 2019. As of December 31, 2021, the Company did not have any interest rate contracts outstanding.  
In 2010 and 2011, the Company entered into two separate forward starting interest rate exchange agreements in anticipation of the issuance of the 4.50% Senior Notes and the 4.20% Senior Notes. The Company cash settled these two interest rate contracts in 2010 and 2011 for a total of $68.9 million, which was being amortized into interest expense over the 10 year terms of the respective debt instruments. In conjunction with the early redemption of the 4.50% Senior Notes on May 27, 2020, the Company accelerated the recognition of the remaining $1.4 million of the pre-tax amount included in Accumulated other comprehensive loss in shareholders’ equity related to the 4.50% Senior Notes and recorded such as Other expense - net in the Consolidated Statements of Income during the year ended December 31, 2020. In conjunction with the early redemption of the 4.20% Senior Notes on June 16, 2021, the Company accelerated the recognition of the remaining $1.3 million of the pre-tax amount included in Accumulated other comprehensive loss in shareholders’ equity related to the 4.20% Senior Notes and recorded such as Other expense - net in the Consolidated Statements of Income during the year ended December 31, 2021. As of December 31, 2021, there was no balance in Accumulated other comprehensive loss related to the cumulative unrealized gain (loss) on derivatives.  
The amount of expense reclassified into interest expense for interest rate contracts for the years ended December 31, 2021, 2020 and 2019 is $3.3 million, $6.0 million and $6.3 million, respectively.   
9. Fair Value Measurements  
ASC 820, Fair Value Measurements and Disclosures, defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:  
•Level 1:  Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.•Level 2: Inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.•Level 3:  Unobservable inputs that reflect the reporting entity’s own assumptions.60
