10. Other Financing Arrangements (Notes) |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Other Financing Arrangements [Abstract] | |
| Other Financing Arrangements | 10. Other Financing Arrangements Non-Recourse Factoring We have entered into various revolving factoring arrangements to sell certain trade receivables to unrelated financial institutions. Transfers under these arrangements, which retain servicing but are without recourse, qualify as true sales under ASC 860. During the year ended December 31, 2025, we factored $245.7 million under these arrangements and recorded $5.3 million of discounts on factored receivables in “Selling, general and administrative” expense. We also repurchased $27.0 million of previously transferred assets under these arrangements during the year ended December 31, 2025. The trade receivables sold that remained outstanding as of December 31, 2025 were $99.8 million. Proceeds from the sale of such receivables were classified as operating cash flows, whereas amounts paid to repurchase previously transferred receivables were classified as investing cash flows. During the six months ended June 30, 2026, we did not sell any trade receivables under these arrangements. There were no trade receivables sold that remained outstanding as of June 30, 2026. Secured Borrowings During the year ended December 31, 2025, we transferred $492.8 million of trade receivables to a financial institution under a factoring arrangement with recourse, while retaining servicing responsibilities. We did not transfer any trade receivables under this factoring arrangement during the six months ended June 30, 2026. Transfers under this arrangement do not meet the criteria for a sale of receivables and are therefore accounted for as secured borrowings. We record discounts on receivables factored with recourse as interest expense over the term of the respective receivables. Accordingly, during the year ended December 31, 2025, we recorded $6.5 million of interest expense associated with this arrangement. As of June 30, 2026 and December 31, 2025, there were no outstanding liabilities related to this arrangement. Supplier Finance Program We participate in a supplier finance program administered by a third-party financial institution. Under this program, suppliers that choose to participate have the option to receive early payment from the financial institution for invoices that we have confirmed as valid. Our contractual payment terms with suppliers are not impacted by their participation in this program. If the supplier participates, we pay the financial institution the full invoice amount on the original due date. We do not pledge assets or provide guarantees under this program. As of June 30, 2026 and December 31, 2025, our payment obligations outstanding under the supplier finance program were $8.4 million and $9.0 million, respectively, which were recorded within “Accounts payable” in our condensed consolidated balance sheets.
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