SPGI · 10-Q · 2026Q1 · Full report

Derivative and FX Hedging

S&P Global Inc. · 2026-04-28 · Importance 54 · Surprise 24

The company manages foreign exchange exposure through a mix of undesignated forward contracts (aggregate notional $1.5 billion as of March 31, 2026) and cross-currency swaps designated as net investment hedges (aggregate notional $3.5 billion maturing in 2029, 2030, 2032 and 2033). It also entered into cash flow hedges via foreign exchange forward contracts to hedge Indian rupee, British pound and Euro exposures through the first quarter of 2028 and fourth quarter of 2027, respectively, with these contracts scheduled to mature within 24 months. Changes in fair value of designated hedges are recorded in accumulated other comprehensive loss and reclassified into revenue or expenses when the hedged transactions affect earnings, while undesignated forwards impact selling and general expenses; the company does not use derivatives for speculative purposes. The hedging program therefore represents multibillion-dollar FX mitigation activity that materially affects OCI, revenue and earnings timing.

Key facts

• Aggregate notional value of foreign exchange forward contracts that do not qualify for hedge accounting as of March 31, 2026: $1.5 billion.
• Notional value of cross currency swaps designated as net investment hedges as of March 31, 2026: $3.5 billion.
• The company reviewed and recorded net unrealized (losses) gains on cash flow hedges and net investment hedges in accumulated other comprehensive loss and provided rollforward tables for the three months ended March 31, 2026.
• As of March 31, 2026, the company estimates that $ million of pre-tax loss related to foreign exchange forward contracts designated as cash flow hedges recorded in other comprehensive income is expected to be reclassified into earnings within the next twelve months.

Impact estimates