v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
12. Derivative Financial Instruments and Hedging Activities
We have historically utilized treasury rate lock contracts, interest rate swaps, and forward swaps for interest rate risk management purposes. We have also periodically entered into forward swaps to hedge foreign currency exchange risk exposures. We do not enter into derivative instruments for speculative purposes. At June 30, 2026 and December 31, 2025, we did not have any outstanding derivative contracts that were designated as hedging instruments. We held three derivative contracts as of June 30, 2026 that were entered into as economic hedges and not designated as hedging instruments.
We assess the effectiveness of derivative instruments in hedging the underlying interest rate exposure both at inception and on an ongoing basis. The unrealized gains or losses on the derivative instruments are recorded in AOCI and are reclassified to Interest expense on the Condensed Consolidated Statements of Operations during the same period in which the hedged transaction affects earnings. We estimate that $3.5 million will be reclassified as a reduction to Interest expense, net over the next 12 months for all of our previously settled cash flow hedges.
The following table presents the gross fair value amounts of our derivative financial instruments and the associated notional amounts (in millions):
June 30, 2026December 31, 2025
Derivatives Not Designated as Hedging InstrumentsNotional
Fair Value
of Assets(1)
Fair Value
of Liabilities
Notional
Fair Value
of Assets
Fair Value
of Liabilities
Foreign exchange derivatives$1,066.8 $13.1 $— $— $— $— 
(1)Included within Other assets, net on the Condensed Consolidated Balance Sheets.
The following table presents the gains recorded in earnings on derivative instruments that were utilized as economic hedges and not designated as hedging instruments (in millions):
Derivatives Not Designated as Hedging InstrumentsFinancial Statement Classification
Three Months Ended June 30,
Six Months Ended June 30,
2026202520262025
Foreign currency derivatives
Gain / (loss) on foreign currency exchanges
$13.1 $14.4 $13.1 $14.4 
The following table presents the gains / (losses) on derivatives in cash flow hedging relationships recognized in OCI (in millions):
Three Months Ended June 30,
Six Months Ended June 30,
Derivatives Designated as Cash Flow Hedges2026202520262025
Interest rate derivatives$— $0.2 $— $(3.6)
The following table presents the amount of gains on derivative instruments reclassified from AOCI into earnings (in millions):
Derivatives Designated as Cash Flow HedgesFinancial Statement Classification
Three Months Ended June 30,
Six Months Ended June 30,
2026202520262025
Interest rate derivatives
Interest expense / Other income / (expense), net
$0.9 $9.7 $3.5 $13.3 
During the three months March 31, 2026, we released net accumulated gains of $1.7 million from AOCI to earnings in conjunction with the discontinuation of a cash flow hedge related to a forecasted debt transaction that is not expected to occur by the end of the originally specified time period. The net accumulated gains were recorded to Other income / (expense), net on the Condensed Consolidated Statements of Operations.