v3.25.4
Financial Instruments and Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments and Derivative Financial Instruments Financial Instruments and Derivative Financial Instruments
The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements and long-term debt, excluding finance leases, were determined using current rates offered for similar obligations taking into account company credit risk. This valuation methodology is Level 2 as defined in the fair value hierarchy. At December 31, 2025, the total carrying value and total fair value of revolving credit agreements and long-term debt, excluding finance leases, was $473.4 million and $469.1 million, respectively. At December 31, 2024, the total carrying value and total fair value of revolving credit agreements and long-term debt, excluding finance leases, was $417.3 million and $416.8 million, respectively.
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of accounts receivable and derivatives. The large number of customers comprising the Company’s customer base and their dispersion across many different industries and geographies mitigates concentration of credit risk on accounts receivable. To further reduce credit risk associated with accounts receivable, the Company performs periodic credit evaluations of its customers, and in certain circumstances may require advance payments or collateral. The Company enters into derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any one institution.
Derivative Financial Instruments
Financial instruments held by the Company include cash and cash equivalents, accounts receivable, accounts payable, revolving credit agreements, long-term debt, interest rate swap agreements and forward foreign currency exchange contracts. The Company does not hold or issue financial instruments or derivative financial instruments for trading purposes.
The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the Consolidated Statements of Operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales.
The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company’s exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in "Cost of sales" in the Consolidated Statements of Operations.
The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and the associated variable rate financings are predominately based upon the one-month SOFR. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are recognized in interest expense.
Cash flows from hedging activities are reported in the Consolidated Statements of Cash Flows in the same classification as the hedged item, as a component of cash flows from operations.
The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation.
The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges.
Foreign Currency Derivatives: The Company held forward foreign currency exchange contracts with a total notional amount of $0.6 billion at December 31, 2025, primarily denominated in euros, Japanese yen, U.S. dollars, Chinese renminbi, Mexican pesos, British pounds, Swedish kroner and Australian dollars. The Company held forward foreign currency exchange contracts with total notional amounts of $0.8 billion at December 31, 2024, primarily denominated in euros, Japanese yen, U.S. dollars, Chinese renminbi, Mexican pesos, British pounds, Swedish kroner and Australian dollars. The fair value of these contracts approximated a net asset of $1.8 million and a net liability $18.5 million at December 31, 2025 and 2024, respectively.
For the years ended December 31, 2025 and 2024, there was no material ineffectiveness of forward foreign currency exchange contracts that qualify for hedge accounting. Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 36 months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI. Based on market valuations at December 31, 2025, $3.2 million of the amount of net deferred gain included in OCI at December 31, 2025 is expected to be reclassified as expense into the Consolidated Statements of Operations over the next twelve months, as the transactions occur.
Interest Rate Derivatives: The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at December 31, 2025 and 2024:
Notional AmountAverage Fixed Rate
December 31December 31December 31December 31
2025202420252024
Term at December 31, 2025
$180.0 $180.0 1.65 %1.65 %Extending to May 2027
20.7 12.0 2.20 %1.93 %Extending to July 2030

The fair value of all interest rate swap agreements was a net asset of $3.8 million and $9.9 million at December 31, 2025 and 2024, respectively. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI. Based on market valuations at December 31, 2025, $3.7 million of the net deferred gain included in OCI is expected to be reclassified as income in the Consolidated Statements of Operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.
The following table summarizes the fair value of derivative instruments at December 31 as recorded in the Consolidated Balance Sheets:
 Asset DerivativesLiability Derivatives
 Balance sheet location20252024Balance sheet location20252024
Derivatives designated as hedging instruments     
Cash Flow Hedges
Interest rate swap agreements      
CurrentPrepaid expenses and other$2.8 $4.3 Prepaid expenses and other$— $— 
Long-termOther non-current assets1.0 5.6 Other non-current assets— — 
Foreign currency exchange contracts   
CurrentPrepaid expenses and other9.9 1.4 Prepaid expenses and other6.6 0.5 
Other current liabilities0.1 3.4 Other current liabilities1.1 17.1 
Long-TermOther non-current assets0.7 — Other non-current assets— — 
Other long-term liabilities0.9 0.8 Other long-term liabilities3.4 5.6 
Total derivatives designated as hedging instruments$15.4 $15.5  $11.1 $23.2 
Derivatives not designated as hedging instruments   
Cash Flow Hedges
Foreign currency exchange contracts    
CurrentPrepaid expenses and other$1.4 $0.8 Prepaid expenses and other$0.9 $1.2 
Other current liabilities2.0 2.3 Other current liabilities1.2 2.8 
Total derivatives not designated as hedging instruments$3.4 $3.1  $2.1 $4.0 
Total derivatives$18.8 $18.6  $13.2 $27.2 

The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty at December 31, 2025 and 2024 as recorded in the Consolidated Balance Sheets:
Derivative Assets as of December 31, 2025
Derivative Liabilities as of December 31, 2025
Gross Amounts of Recognized AssetsGross Amounts OffsetNet Amounts PresentedNet AmountGross Amounts of Recognized LiabilitiesGross Amounts OffsetNet Amounts PresentedNet Amount
Cash Flow Hedges
Interest rate swap agreements$3.8 $— $3.8 $3.8 $— $— $— $— 
Foreign currency exchange contracts4.5 (2.7)1.8 1.8 2.7 (2.7)— — 
Total derivatives$8.3 $(2.7)$5.6 $5.6 $2.7 $(2.7)$— $— 
Derivative Assets as of December 31, 2024
Derivative Liabilities as of December 31, 2024
Gross Amounts of Recognized AssetsGross Amounts OffsetNet Amounts PresentedNet AmountGross Amounts of Recognized LiabilitiesGross Amounts OffsetNet Amounts PresentedNet Amount
Cash Flow Hedges
Interest rate swap agreements$9.9 $— $9.9 $9.9 $— $— $— $— 
Foreign currency exchange contracts0.5 (0.5)— — 19.0 (0.5)18.5 18.5 
Total derivatives$10.4 $(0.5)$9.9 $9.9 $19.0 $(0.5)$18.5 $18.5 
The following table summarizes the pre-tax impact of derivative instruments for each year ended December 31 as recorded in the Consolidated Statements of Operations:
Derivatives in Cash Flow Hedging RelationshipsAmount of Gain or (Loss)
Recognized in OCI on
Derivative (Effective Portion)		Location of Gain or
(Loss) Reclassified
from OCI into
Income (Effective
Portion)		Amount of Gain or (Loss)
Reclassified from OCI
into Income (Effective Portion)
202520242023202520242023
Cash Flow Hedges
Interest rate swap agreements$(0.9)$4.4 $1.9 Interest expense$5.4 $7.0 $6.3 
Foreign currency exchange contracts18.0 (35.0)(4.3)Cost of sales(4.4)(34.5)(37.3)
$17.1 $(30.6)$(2.4)$1.0 $(27.5)$(31.0)
Derivatives Not Designated as Hedging InstrumentsLocation of Gain or (Loss) Recognized in Income on DerivativeAmount of Gain or (Loss)
Recognized in Income on Derivative
202520242023
Cash flow hedges
Foreign currency exchange contractsCost of sales$3.4 $(8.3)$(4.3)
Total$3.4 $(8.3)$(4.3)