v3.26.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Summary of Derivative Instruments
The Company addresses its exposure to market risks, principally the market risk associated with changes in interest rates and foreign currency exchange rates, through a program of risk management that includes, from time to time, the use of derivative instruments such as foreign currency forward contracts and interest rate swap agreements. The Company does not hold or issue derivative instruments for trading purposes. The derivative instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not believe that its exposure to market risk is material to the Company’s financial position or results of operations.
The fair value of the Company’s interest rate swaps and foreign currency forward contracts are determined based on observable market inputs (Level 2). The table below presents the fair value of the Company’s derivatives on a gross basis and the balance sheet classification of those instruments:
March 31, 2026December 31, 2025
Balance Sheet ClassificationAssetLiabilityAssetLiability
Derivatives designated as hedging instruments:
Interest rate swaps
Accrued expenses and other$— $(0.6)$— $(1.2)
Other liabilities— — — — 
Derivatives not designated as hedging instruments:
Foreign currency forward contractsPrepaid expenses and other$0.9 $— $0.3 $— 
Other current liabilities— (0.6)— (0.6)
The notional amounts of the Company’s interest rate swaps and foreign currency forward contracts were $150.0 and $316.5 as of March 31, 2026 and $150.0 and $305.7 as of December 31, 2025, respectively.
The following table presents the pre-tax effects of cash flow hedges included in the Company’s condensed consolidated statements of comprehensive loss:
Pre-Tax Gain (Loss) Included in Other Comprehensive (Loss) Income
Three Months Ended March 31,
20262025
Interest rate swaps$0.4 $(0.7)
The following table presents amounts reclassified out of accumulated other comprehensive loss and recognized in the condensed consolidated statements of operations:
Amounts Reclassified from Other Comprehensive Loss into Earnings
Three Months Ended March 31,
Statement of Operations Classification20262025
Interest rate swapsInterest expense$0.2 $— 
The estimated amount of pre-tax net losses included in other comprehensive (loss) income that is expected to be reclassified into earnings over the twelve months following March 31, 2026, is $0.6.
Refer to Note 9, “Preferred Stock and Common Shareholders' Equity” for the impact of the Company’s derivative instruments included in accumulated other comprehensive loss.
The following table presents a summary of the gain for derivative contracts not designated as hedges included in the Company’s condensed consolidated statements of operations:
Gain on Derivatives Recognized in Earnings
Three Months Ended March 31,
Statement of Operations Classification20262025
Foreign currency forward contractsForeign exchange gain (loss)$0.6 $0.4