The following table is a summary of the fair value of derivatives outstanding at March 31, 2025 and December 31, 2024:


	Fair Value
	March 31, 2025				December 31, 2024
	Assets(a)		Accrued Liabilities		Assets(a)		Accrued Liabilities
Derivatives Designated as Cash Flow Hedges
Currency Contracts	$	—	$	8	$	—	$	13
Interest Rate Swaps	$	18	$	—	$	33	$	—

Total Hedges	$	18	$	8	$	33	$	13
Derivatives Not Designated as Cash Flow Hedges
Currency Contracts	$	—	$	—	$	1	$	5
Total Derivatives	$	18	$	8	$	34	$	18

The following table summarizes the impact of the Company's derivatives on the unaudited Condensed Consolidated Statement of Operations:


	Amount of Pre-Tax Gain (Loss) Recognized in Earnings						Amount of Pre-Tax Gain (Loss) Recognized in Earnings
	Revenue		Cost of Goods Sold		Other expense, net		Cost of Goods Sold		Other expense, net
	Three Months Ended March 31, 2025						Three Months Ended March 31, 2024

Derivatives Not Designated as Hedging Instruments
Currency Contracts	$	—	$	—	$	—	$	—	$	(6)
Derivatives Designated as Hedging Instruments

Natural Gas Hedges	$	—	$	—	$	—	$	(1)	$	—
Total Derivatives	$	—	$	—	$	—	$	(1)	$	(6)

As a result of the 2024 Amendment associated with the 2024 Term Loan Facility, the Company noted that the hedged transaction associated with the interest rate swap with a notional value of $200 million (which converted the variable rate to a fixed rate for a portion of the 2022 Term Loan Facility) had changed as the hedged transaction would now convert the variable rate to a fixed rate for a portion of the 2024 Term Loan Facility. There were no amendments to the terms of the $200 million interest rate swap, including the notional value, index rate, or expiration date as a result of the 2024 Amendment. However, given the change in the hedged transaction, we completed a hedge effectiveness test and determined that this hedge instrument continues to be highly effective at achieving offsetting cash flows related to the hedged transaction, enabling us to continue to apply hedge accounting over the remaining term of this hedge relationship.

In line with the original maturity date, one of the interest rate swap agreements (notional value of $250 million) expired in September 2024. As a result of this, on September 26, 2024, the Company entered into two new interest-rate swap agreements for a notional of $125 million each with two counterparty banks, for an aggregate notional of $250 million. These new agreements are effective as of September 30, 2024 and will mature on September 30, 2031, in line with the maturity date of the 2024-B Term Loan Facility following Amendment No.6. The Company has designated these two new hedges as cash flow hedges with the objective of ensuring that the Company continues to achieve the offsetting effect to the interest rate volatility associated with the $250 million portion of the 2024-B Term Loan Facility.

Additionally, on September 26, 2024, the counterparty bank associated with one of the existing interest rate swap contracts (notional value of $250 million) novated its rights and obligations in the interest rate swap contracts to a new counterparty. No other terms and conditions of the interest rate swap contract were impacted by this transaction. We also determined that it is probable the new counterparty will perform its obligations under the interest rate swap agreements. However, following the novation, the Company terminated the existing interest rate swap agreement and simultaneously entered into a new interest rate swap agreement with the new counterparty bank with an effective date of September 30, 2024 and expiring on September 30, 2031 (in line with the maturity date of the 2024-B Term Loan Facility). At the time of this change, the Company determined that the interest payments hedged are still probable to occur, therefore, the gains accumulated of $3 million on the previous interest rate swap are being amortized into interest expense through March 11, 2028, the original maturity of the previous term loan agreement. As a result of this transaction, we completed a hedge effectiveness test and determined that this hedge instrument is highly effective at achieving offsetting cash flows related to the hedged transaction, enabling us to apply hedge accounting over the term of the new hedge relationship.

As of March 31, 2025, the Company maintains a total of $950 million of interest rate swaps (with $450 million maturing in March 2028 and $500 million maturing in September 2031) with the objective in using the interest-rate swap agreements to add stability to interest expense and to manage the Company's exposure to interest rate movements. These interest rate swaps have been designated as cash flow hedges and involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Fair value gains or losses on these cash flow hedges are recorded in accumulated other comprehensive loss and are subsequently reclassified into interest expense in the same periods during which the hedged transactions affect earnings.

At March 31, 2025 and December 31, 2024, the net unrealized gain of $11 million and the net unrealized gain of $26 million, respectively, was recorded in "Accumulated other comprehensive loss" on the unaudited Condensed Consolidated Balance Sheet. For the three months ended March 31, 2025, the amounts recorded in interest expense related to the interest-rate swap agreements was $2 million, of which less than $1 million was reclassified from "Accumulated other comprehensive loss" to interest expense. For the three months ended March 31, 2024, the net amounts recorded in interest expense related to the interest-rate swap agreements was $8 million, of which $2 million was reclassified from "Accumulated other comprehensive loss" to interest expense.

From time to time, we enter into foreign currency contracts used to hedge forecasted third party non-functional currency sales for our South African subsidiaries. From time to time, we enter into foreign currency contracts used to hedge forecasted non-functional currency cost of goods sold and forecasted non-functional currency selling, general and administrative expenses ("SG&A expenses") for our Australian subsidiaries. Historically, we have used a combination of zero-cost collars or forward contracts to reduce the exposure. These foreign currency contracts are designated as cash flow hedges. Changes to the fair value of these foreign currency contracts are recorded as a component of other comprehensive (loss) income, if these contracts remain highly effective, and are recognized in net sales, costs of goods sold or SG&A expenses in the period in which the forecasted transaction affects earnings or are recognized in other expense, net when the transactions are no longer probable of occurring. As of March 31, 2025, we had notional amounts of 404 million Australian dollars ($252 million at the March 31, 2025 exchange rate) that expire between April 24, 2025 and December 24, 2025 to reduce the exposure of our Australian subsidiaries’ cost of sales to fluctuations in currency rates. As of March 31, 2025, we had notional amounts of 19 million Australian dollars ($12 million at the March 31, 2025 exchange rate) that expire between April 24, 2025 and December 24, 2025 to reduce the exposure of our Australian subsidiaries’ SG&A expenses to fluctuations in currency rates. As of March 31, 2025, we had no outstanding amounts to reduce the exposure of our South African subsidiaries' third party sales to fluctuations in currency rates. At March 31, 2025, there was a net unrealized gain of $10 million recorded in "Accumulated other comprehensive loss" on the unaudited Condensed Consolidated Balance Sheet, which is expected to be fully recognized in earnings over the next twelve months. At December 31, 2024, there was a net loss of $14 million recorded in "Accumulated other comprehensive loss" on the Condensed Consolidated Balance Sheet.

From time to time, we enter into foreign currency contracts for the South African Rand, Australian Dollar, Euro, Pound Sterling, and Saudi Riyal to reduce exposure of our subsidiaries’ balance sheet accounts not denominated in our subsidiaries’ functional currency to fluctuations in foreign currency exchange rates. Historically, we have used forward contracts to reduce the exposure. For accounting purposes, these foreign currency contracts are not considered hedges. The change in fair value associated with these contracts is recorded in “Other expense, net” within the unaudited Condensed Consolidated Statement of Operations and partially offsets the change in value of third party and intercompany-related receivables not denominated in the functional currency of the subsidiary. At March 31, 2025, there was (i) 1.3 billion South African Rand (or approximately $71 million at March 31, 2025 exchange rate), (ii) 138 million Australian dollars (or approximately $86 million at the March 31, 2025 exchange rate), (iii) 26 million Pound Sterling (or approximately $34 million at the March 31, 2025 exchange rate), (iv) 56 million Euro (or approximately $60 million at the March 31, 2025 exchange rate), and (v) 145 million Saudi Riyal (or approximately $39 million at the March 31, 2025 exchange rate) of notional amounts of outstanding foreign currency contracts. At December 31, 2024, there was (i) 1.4 billion South African Rand (or approximately $76 million at the March 31, 2025 exchange rate), (ii) 113 million Australian dollars (or approximately $71 million at the March 31, 2025 exchange rate), (iii) 34 million Pound Sterling (or approximately $44 million at the March 31, 2025 exchange rate), (iv) 91 million Euro (or approximately $98 million at the March 31, 2025 exchange rate) and (v) 71 million Saudi Riyal (or approximately $19 million at the March 31, 2025 exchange rate) of notional amounts of outstanding foreign currency contracts.