v3.26.1
Derivatives and Hedging
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging
The Company’s policy requires derivatives to be used solely for managing risks and not for speculative purposes. As a result of the Company’s European operations, the Company is exposed to fluctuations in exchange rates between EUR and USD. As such, the Company entered into two cross-currency rate swaps during the year ended December 31, 2022, to manage currency risks related to our investments in foreign operations. During the year ended December 2025, the Company extended one cross-currency rate swap derivative by 2 years. During the six months ended June 30, 2026, the Company extended the other cross-currency rate swap derivative by thirty-three months. The Company is also subject to interest rate risk related to the Credit Facilities. The Company manages its risk to interest rate fluctuations through the use of derivative financial instruments. As such, the Company entered into an interest rate swap (notional amount of $75.0 million) during the year ended December 31, 2023 (settled during the three months ended June 30, 2026), as well as an additional interest rate swap (notional amount of $100.0 million) during the year ended December 31, 2025 (scheduled to settle during the fourth quarter of 2026), to mitigate the risk of adverse changes in benchmark interest rates on the Company’s future interest payments (collectively, the “interest rate swaps”).
All derivative instruments are carried at fair value in the unaudited Condensed Consolidated Balance Sheets. The following table presents the fair values of the Company’s derivative instruments that were designated and qualified as part of a hedging relationship (in millions):

Fair Value (1)
Derivatives Designated as Hedging InstrumentsBalance Sheet LocationJune 30, 2026December 31, 2025
Assets:
Accrued interest receivable on cross-currency rate swapsPrepaid expenses and other currents assets$— $0.1 
Interest rate swapsPrepaid expenses and other currents assets0.2 — 
Total assets$0.2 $0.1 
Liabilities:
Interest rate swapsDerivative liabilities, current$— $0.1 
Cross-currency rate swapDerivative liabilities, current— 20.6 
Cross-currency rate swapOther non-current liabilities33.3 20.1 
Total liabilities$33.3 $40.8 
(1) Refer to Note 16, Fair Value Measurements, for additional information related to the estimated fair value.

Counterparty Credit Risk
Outstanding financial derivative instruments expose the Company to credit loss in the event of nonperformance by the counterparties to the derivative agreements. The Company's credit exposure related to these financial instruments is represented by the notional amount of the hedging instruments. The Company manages its exposure to counterparty credit risk through minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. The Company's derivative instruments are with financial institutions of investment grade or better. Counterparty credit risk will be monitored through periodic review of counterparty bank’s credit ratings and public financial filings. Based on these factors, the Company considers the risk of counterparty default to be minimal.
Hedges of Net Investments in Foreign Operations Strategy
The Company uses fixed-to-fixed cross-currency rate swaps (“CCRS”) to protect the net investment on pre-tax basis in the Company’s EUR-denominated operations against changes in spot exchange rates. For derivative financial instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in the fair values of the derivative financial instruments are recognized in net investment hedges adjustments, a component of accumulated other comprehensive loss (“AOCL”), to offset the changes in the values of the net investments being hedged. Any ineffective portions of net investment hedges are reclassified from AOCL into earnings during the period of change.
The following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges (in millions):

Notional Amount(Loss) Gain Recognized in AOCL
As ofThree Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
June 30, 2026December 31, 2025
Cross-currency rate swaps€283.8 €238.8 $1.9 $(22.2)$7.5 $(31.6)
Total€283.8 €238.8 $1.9 $(22.2)$7.5 $(31.6)
In 2025, the Company amended one of the cross-currency rate swaps to extend the maturity to December 31, 2027. During six months ended June 30, 2026, the Company amended another cross-currency rate swap to extend the maturity to December 29, 2028. As a part of each amendment, the relevant cross-currency rate swap was dedesignated from previous hedge accounting, and then redesignated as a net investment hedge, resulting in an immaterial off-market impact to the excluded interest component which will be recognized systematically into earnings over the life of the derivative.
The Company did not reclassify any gains or losses related to net investment hedges from AOCL into earnings during the six months ended June 30, 2026 and June 30, 2025, respectively. In addition, the Company did not have any ineffectiveness related to net investment hedges during the six months ended June 30, 2026 and June 30, 2025. The cash inflows and outflows associated with the Company’s derivative contracts designated as net investment hedges are classified as investing or financing activities in the unaudited Condensed Consolidated Statements of Cash Flows.
Cash Flow Hedging Strategy
The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in interest rates. The changes in the fair values of derivatives designated as cash flow hedges are recorded in AOCL and are reclassified into the line item in the unaudited Condensed Consolidated Statements of Operations in which the hedged items are recorded in the same period the hedged items affect earnings. The changes in the fair values of hedges that are determined to be ineffective are immediately reclassified from AOCL into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is three years.

No gains or losses were recognized in other comprehensive income ("OCI") during the three months ended June 30, 2026, and gains of $0.3 million were recognized for the six months ended June 30, 2026 as a result of the interest rate swaps. Gains of $0.1 million and $0.2 million in income were recognized through interest expense and reclassified from OCI during the same periods. During the three months ended June 30, 2025, the interest rate swaps resulted in gains of $0.1 million recognized in other comprehensive income ("OCI"). No gains or losses were recognized in OCI for the six months ended June 30, 2025. Gains of $0.1 million and $0.2 million in income were recognized through interest expense and reclassified from OCI during the same periods. The cash inflows and outflows associated with the Company’s derivative contracts designated as cash flow hedges are classified as financing activities in the unaudited Condensed Consolidated Statements of Cash Flows. In addition, the Company did not have any ineffectiveness related to the interest rate swaps during the three and six months ended June 30, 2026.