v3.26.1
FAIR VALUE
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Authoritative guidelines require the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:
•Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.
•Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
As of June 30, 2026, the fair values of our financial assets and liabilities were categorized as follows:
TotalLevel 1Level 2Level 3
Assets
Investment in equity securities (1)
$2,215 $2,215 $— $— 
Foreign exchange contracts (2)
625 — 625 — 
Convertible notes (3)
5,000 — — 5,000 
Total assets at fair value$7,840 $2,215 $625 $5,000 
Liabilities
Foreign exchange contracts (2)
$1,045 $— $1,045 $— 
Cross-currency swap contract (2)
24,654 — 24,654 — 
Contingent consideration obligation253 — — 253 
Total liabilities at fair value$25,952 $— $25,699 $253 
As of December 31, 2025, the fair values of our financial assets and liabilities were categorized as follows:
TotalLevel 1Level 2Level 3
Assets
Investment in equity securities (1)
$2,503 $2,503 $— $— 
Foreign exchange contracts (2)
298 — 298 — 
Convertible notes (3)
5,650 — — 5,650 
Total assets at fair value$8,451 $2,503 $298 $5,650 
Liabilities
Foreign exchange contracts (2)
$632 $— $632 $— 
Cross-currency swap contract (2)
32,542 — 32,542 — 
Contingent consideration obligation3,983 — — 3,983 
Total liabilities at fair value$37,157 $— $33,174 $3,983 
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(1)Investment in PureCycle Technologies (“PCT” or “PureCycle”). See Note 17 – Investment in Equity Securities for discussion of this investment.
(2)Market approach valuation technique based on observable market transactions of spot and forward rates.
(3)Investment in convertible notes in Enable Injections, Inc. The investment is included within Miscellaneous assets in our Condensed Consolidated Balance Sheets.
The carrying amounts of our other current financial instruments such as cash and equivalents, accounts and notes receivable, notes payable and current maturities of long-term obligations approximate fair value due to the short-term maturity of the instruments. We consider our long-term debt obligations a Level 2 liability and utilize the market approach valuation technique based on interest rates that are currently available to us for issuance of debt with similar terms and maturities. The estimated fair value of our long-term obligations was $1.06 billion and $1.09 billion as of June 30, 2026 and December 31, 2025, respectively.
As part of the Sommaplast acquisition, we are also obligated to pay the shareholders of Sommaplast certain contingent consideration based on 2025 and 2026 cumulative financial performance metrics as defined in the purchase agreement. We consider these obligations a Level 3 liability. Based on a projection as of the acquisition date, we estimated the aggregate fair value for this contingent consideration arrangement upon acquisition to be $4.0 million utilizing a Monte Carlo valuation model. As of June 30, 2026, approximately $3.7 million of this contingent consideration has been paid out.
Changes in the fair value of these obligations are recorded within selling, research & development and administrative expenses in our Condensed Consolidated Statements of Income. Significant changes to the inputs can result in a significantly higher or lower fair value measurement. The following table provides a summary of changes in our Level 3 fair value measurements:
Balance, December 31, 2025$3,983 
Payments(3,730)
Balance, June 30, 2026$253