v3.26.1
Derivative Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
We use derivatives as part of the normal business operations to manage our exposure to fluctuations in foreign currency rates on USD-denominated debt held by subsidiaries with a functional currency other than USD and fluctuations in foreign currency translation associated with our global business presence.
Net Investment Hedges
To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we enter into fixed-for-fixed cross-currency swap contracts between the Euro and USD designated as hedges and accounted for as net investment hedges. In May 2025, we entered into a fixed-for-fixed cross-currency swap (the “May 2025 Swap”) which converts notional amounts of $80.0 million at 5.84% for €80.0 million at 4.12%.
In January 2025, we entered into a variable-for-variable cross-currency swap contract between the Euro and USD to protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, which we designated as a hedge and accounted for as a net investment hedge (the “January 2025 Swap”). The January 2025 swap, with notional amounts of approximately $80.0 million and €77.9 million, respectively, is settled monthly at floating rates based on SOFR plus 4.50% and Euro Interbank Offered Rate (“EURIBOR”) plus 4.69%, respectively, on the first of every month.
The component of the gains or losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are economically partly offset by movements in the fair value of our cross-currency swap contracts. The fair value of the swaps is calculated each period, with changes in fair value recorded in currency translation in other comprehensive income (loss) and accumulated other comprehensive income (loss). Components of the May 2025 Swap and the January 2025 Swap excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income (loss) and into interest (income) expense over the life of these swaps to maturity on September 1, 2027 and February 1, 2028, respectively.
Fair Value Hedge
In January 2025, we entered into a variable-to-variable cross-currency swap contract to reduce the effects of changes in foreign currency from Euro to USD on the portion of the term loan held by the Dutch Borrower. The cross-currency swap, with notional amounts of $50.0 million and €47.8 million, is settled monthly at floating rates based on SOFR plus 4.5% and EURIBOR plus 4.69%, respectively. We apply fair value hedge accounting and we consider market factors other than the change in the spot exchange rate on the notional amount of the swap to be excluded components.
The foreign currency gains or losses on the portion of the term loan held by the Dutch Borrower are driven by changes in foreign exchange rates and are economically partly offset by movements in the fair value of our cross-currency swap contracts. Fair value of the swap is calculated each period, with the impact of changes in foreign currency spot rates on the cross-currency swap notional amount reported in foreign currency gains or losses each period, while all other changes are reported in other comprehensive income (loss). The components of the swap that are excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income (loss) and into interest expense over the life of the swap to maturity on February 1, 2028.
The following table summarizes the total fair values of derivative assets and liabilities (based on Level 2 inputs, as further discussed in Note 10 — Fair Value Measurement) and the respective classification in the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025:
Assets (Liabilities)
Balance Sheet ClassificationJune 30, 2026December 31, 2025
Cross-Currency Swaps
Designated as fair value hedgePrepaid expenses and other current assets$0.5 $0.5 
Designated as net investment hedgesPrepaid expenses and other current assets$2.3 $2.2 
Designated as fair value hedgeDerivative instruments$(5.3)$(6.8)
Designated as net investment hedgesDerivative instruments$(22.2)$(26.6)
Income effects of our cross-currency swap designated as a fair value hedge were not significant for the three and six months ended June 30, 2026 and 2025. The following table presents the effect of our cross-currency swaps designated as net investment hedges on our Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss:
Three Months Ended June 30,Six Months Ended June 30,
Income Statement Classification2026202520262025
Cross-currency swaps designated as net investment hedges, amounts excluded from effectiveness testingInterest expense$(0.5)$(0.4)$(1.0)$(0.8)