The Company is exposed to global market risks, including risks from changes in foreign exchange rates and changes in interest rates. Accordingly, we use derivatives to manage the aforementioned financial exposures that occur in the normal course of business. We do not use derivatives for trading or speculative purposes. By their nature, all such instruments involve risk, including the credit risk of non-performance by counterparties. However, at March 31, 2025 and December 31, 2024, there

was no significant risk of loss in the event of non-performance of the counterparties to these financial instruments. We control our exposure to credit risk through monitoring procedures and by selection of reputable counterparties. Collateral is generally not required for these types of investments.

Our objective in managing our exposure to interest rates is to limit the impact of interest rate changes on our earnings, cash flows and financial position, and to lower our overall borrowing costs. To achieve these objectives, we maintain a practice that floating-rate debt be managed within a minimum and maximum range of our total debt exposure. To manage our exposure and limit volatility, we may use fixed-rate debt, floating-rate debt and/or interest rate swaps. We recognize all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheet.

We use interest rate swaps to manage the impact of interest rate changes on our earnings. Under the swap agreements, we make monthly payments based on the fixed interest rate and receive monthly payments based on the floating rate. The purpose of the swaps is to mitigate the variation of future cash flows from changes in the floating interest rates on our existing debt. The swaps are designated and accounted for as cash flow hedges. Changes in the fair value of the hedging instruments are recorded in other comprehensive income (loss) ("OCI"), net of tax, and reclassified to earnings in the same line item associated with the hedged item when the hedged item impacts earnings.


Expiration date	Fixed rate	Notional amount
		March 31, 2025	December 31, 2024
February 27, 2025	1.629%	$—	$250.0
March 27, 2025	3.214%	—	1,000.0
February 8, 2026	3.695%	500.0	500.0
March 27, 2028	3.246%	1,000.0	1,000.0
March 27, 2028	3.229%	350.0	—
March 27, 2028	3.240%	250.0	—
Total interest rate swaps		$2,100.0	$2,750.0

Our objective in managing exposure to foreign currency fluctuations is to reduce the volatility caused by foreign exchange rate changes on the earnings, cash flows and financial position of our international operations. From time to time, we follow a practice of hedging certain balance sheet positions denominated in currencies other than the functional currency applicable to each of our various subsidiaries. In addition, we are subject to foreign exchange risk associated with our international earnings and net investments in our foreign subsidiaries. We may use short-term, foreign exchange forward and, from time to time, option contracts to execute our hedging strategies. Certain derivatives are designated as accounting hedges.

To decrease earnings volatility, we currently hedge substantially all our intercompany balance positions denominated in a currency other than the functional currency applicable to each of our various subsidiaries with short-term, foreign exchange forward contracts. The underlying transactions and the corresponding foreign exchange forward contracts are marked to market at the end of each quarter and the fair value changes are reflected within “Non-operating income (expense) – net” in the condensed consolidated statements of operations and comprehensive income (loss).

To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we hedge a portion of our net investment in one or more of our foreign subsidiaries by using cross-currency interest rate swaps. Cross-currency swaps are designated as net investment hedges of a portion of our foreign investments denominated in the non-U.S. dollar currency. The component of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates, are partly offset by movements in the fair value of our cross-currency swap contracts. The change in the fair value of the swaps in each period is reported in OCI, net of tax. Such amounts will remain in accumulated OCI until the liquidation or substantial liquidation of our investment in the underlying foreign operations. Through the respective maturity dates of each of the swap contracts, we receive monthly fixed-rate interest payments, which are recorded as contra expense within "Interest expense" in the condensed consolidated statements of operations and comprehensive income (loss). On the maturity date of each swap contract, we will receive the respective notional amount in USD and pay the counterparty the same in euros. The swaps are designated as net investment hedges of a portion of our foreign investments denominated in the Euro currency.


March 31, 2025
	Pay		Receive
Expiration date	Notional amount	Interest rate	Notional amount	Interest rate
July 19, 2026	€124.0	0%	$125.0	1.723%
July 19, 2027 (1)	121.4	0%	125.0	1.909%
April 16, 2028 (1)	72.9	0%	75.0	1.790%
April 16, 2028 (1)	72.9	0%	75.0	1.803%
April 16, 2029 (1)	97.1	0%	100.0	1.762%
January 3, 2030 (1)	121.5	0%	125.0	1.415%
Total cross-currency swaps	€609.8		$625.0

December 31, 2024
	Pay		Receive
Expiration date	Notional amount	Interest rate	Notional amount	Interest rate
July 19, 2025 (2)	€124.0	0%	$125.0	1.883%
July 19, 2026	124.0	0%	125.0	1.723%
July 19, 2027 (2)	124.0	0%	125.0	1.400%
April 16, 2028 (2)	69.2	0%	75.0	1.676%
April 16, 2028 (2)	69.2	0%	75.0	1.685%
April 16, 2029 (2)	92.2	0%	100.0	1.703%
Total cross-currency swaps	€602.6		$625.0

(2)These swaps were terminated on January 3, 2025. Upon the termination of these swaps, we paid cash of $1.1 million, which was reported in OCI at March 31, 2025, and will remain within accumulated OCI until the period in which a disposal or substantial liquidation of the entities hedged occurs.

We received aggregate interest payments of $2.3 million and $2.1 million related to cross-currency swaps for the three months ended March 31, 2025 and 2024, respectively. These payments were recorded as contra expense within "Interest expense" in the condensed consolidated statements of operations and comprehensive income (loss).


	Asset derivatives						Liability derivatives
	March 31, 2025			December 31, 2024			March 31, 2025			December 31, 2024
	Balance sheet location	Fair value		Balance sheet location	Fair value		Balance sheet location	Fair value		Balance sheet location	Fair value
Derivatives designated as hedging instruments:
Cash flow hedge derivative:
Interest rate swaps	Other current assets	$	19.6	Other current assets	$	42.6	Other accrued & current liabilities	$	—	Other accrued & current liabilities	$	—
Net investment hedge derivative:
Cross-currency swaps	Other current assets	—		Other current assets	3.7		Other accrued & current liabilities	30.1		Other accrued & current liabilities	13.2
Total derivatives designated as hedging instruments		$	19.6		$	46.3		$	30.1		$	13.2
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	Other current assets	$	1.1	Other current assets	$	1.3	Other accrued & current liabilities	$	0.6	Other accrued & current liabilities	$	3.4

Total derivatives not designated as hedging instruments		$	1.1		$	1.3		$	0.6		$	3.4
Total derivatives		$	20.7		$	47.6		$	30.7		$	16.6


	Amount of pre-tax net gain or (loss) recognized in OCI on derivative					Amount of gain or (loss) reclassified from accumulated OCI into income					Amount of gain or (loss) recognized in income on derivative
	Three months ended March 31,					Three months ended March 31,					Three months ended March 31,
Derivatives designated as hedging instruments	2025		2024		Location of gain or (loss) reclassified from accumulated OCI into income	2025		2024		Location of gain or (loss) recognized in income on derivative	2025		2024
Cash flow hedge derivative:
Interest rate swaps	$	(18.4)	$	6.3	Interest expense	$	2.7	$	21.2	Interest expense	$	2.7	$	21.2
Net investment hedge derivative:
Cross-currency swaps	$	(21.7)	$	6.6		$	—	$	—		$	—	$	—


		Amount of gain (loss) recognized in income on derivatives
		Three months ended March 31,
Derivatives not designated as hedging instruments	Location of gain or (loss) recognized in income on derivatives	2025		2024

Foreign exchange forward contracts	Non-operating income (expense) – net	$	(4.7)	$	1.0

Our financial assets and liabilities that are reflected in the condensed consolidated financial statements include derivative financial instruments, cash and cash equivalents, accounts receivable, other receivables, accounts payable, short-term borrowings and long-term borrowings.


	Quoted prices in active markets for identical assets (level I)		Significant other observable inputs (level II)		Significant unobservable inputs (level III)		Balance at March 31, 2025
Assets:
Cash equivalents (1)	$	0.4	$	—	$	—	$	0.4
Other current assets:
Foreign exchange forwards (2)	$	—	$	1.1	$	—	$	1.1
Interest rate swap arrangements (3)	$	—	$	19.6	$	—	$	19.6

Liabilities:
Other accrued and current liabilities:
Foreign exchange forwards (2)	$	—	$	0.6	$	—	$	0.6

Cross-currency swap arrangements (3)	$	—	$	30.1	$	—	$	30.1


	Quoted prices in active markets for identical assets (level I)		Significant other observable inputs (level II)		Significant unobservable inputs (level III)		Balance at December 31, 2024
Assets:
Cash equivalents (1)	$	0.4	$	—	$	—	$	0.4
Other current assets:
Foreign exchange forwards (2)	$	—	$	1.3	$	—	$	1.3
Interest rate swap arrangements (3)	$	—	$	42.6	$	—	$	42.6
Cross-currency swap arrangements (3)	$	—	$	3.7	$	—	$	3.7
Liabilities:
Other accrued and current liabilities:
Foreign exchange forwards (2)	$	—	$	3.4	$	—	$	3.4
Cross-currency swap arrangements (3)	$	—	$	13.2	$	—	$	13.2

At March 31, 2025 and December 31, 2024, the fair value of cash and cash equivalents, accounts receivable, other receivables and accounts payable approximated carrying value due to the short-term nature of these instruments. The estimated fair values of other financial instruments subject to fair value disclosures, determined based on valuation models using discounted cash flow methodologies with market data inputs from globally recognized data providers and third-party quotes from major financial institutions (categorized as Level II in the fair value hierarchy), are as follows:

In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis as required by GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges and for acquisition accounting in accordance with the guidance in ASC 805 "Business Combinations."