v3.26.1
Derivative Instruments and Risk Management
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Risk Management
9.
Derivative Instruments and Risk Management

Changes in interest rates, foreign exchange rates, the price of the Company’s Common Stock and commodity prices expose the Company to market risk. The Company manages these risks by the use of derivative instruments, such as cash flow and fair value hedges, diesel and commodity hedge contracts, equity derivatives and foreign exchange forward contracts. The Company does not use derivatives for trading or speculative purposes. Refer to Note 3 in the Form 10-K for a discussion of each of the Company’s derivative instruments in effect as of December 31, 2025.

The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table:

 

 

Notional

 

 

Notional

 

 

 

Amount

 

 

Amount

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

Foreign exchange contracts

 

$

376.9

 

 

$

438.2

 

Diesel fuel contracts

 

2.3 gallons

 

 

4.5 gallons

 

Commodities contracts

 

33.4 pounds

 

 

43.6 pounds

 

Net Investment hedge(1)

 

$

0.0

 

 

$

25.0

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

Foreign exchange contracts

 

$

6.7

 

 

$

2.4

 

Equity derivatives

 

$

12.3

 

 

$

12.0

 

 

(1) The Net Investment hedge matured during the second quarter of 2026 and resulted in a gain of $2.4 recorded in Accumulated Other Comprehensive Income.

 

The fair values and amount of gain (loss) recognized in income and Other Comprehensive Income associated with the derivative instruments disclosed above did not have a material impact on the Company’s condensed consolidated financial statements during the three and six months ended June 30, 2026.