v3.26.1
Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges).
INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES
We utilize interest rate swap agreements designated as cash flow hedges to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. Certain of our interest rate swap agreements have notional amounts that will increase with the underlying hedged transaction. Under our interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon the one-month Secured Overnight Financing Rate ("SOFR"), in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. Our interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.
As of June 30, 2026 and December 31, 2025, we have approximately $1,032,000 and $1,349,000, respectively, in notional value outstanding on our interest rate swap agreements. As of June 30, 2026, our interest rate swap agreements have maturity dates ranging from August 2026 through June 2029.
CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS NET INVESTMENT HEDGES
We utilize cross-currency swaps to hedge the variability of exchange rate impacts between the United States dollar and certain of our foreign functional currencies, including the Euro and the Canadian dollar. As of June 30, 2026, our cross-currency swap agreements have maturity dates ranging from November 2026 through February 2029.
The notional values of our cross-currency swaps, by hedged currency, as of June 30, 2026 and December 31, 2025, are as follows:
JUNE 30, 2026DECEMBER 31, 2025
Euro$504,559 $509,187 
Canadian dollar350,000 350,000 

$854,559 $859,187 
We have designated these cross-currency swap agreements as hedges of net investments in our Euro and Canadian dollar denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis.
The fair values of derivative instruments recognized in our Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, by derivative instrument, are as follows:
JUNE 30, 2026
DECEMBER 31, 2025
DERIVATIVE INSTRUMENTS(1)
ASSETSLIABILITIESASSETSLIABILITIES
Cash Flow Hedges(2)
Interest rate swap agreements$— $(2,945)$— $(9,752)
Net Investment Hedges(3)
Cross-currency swap agreements3,380 (51,772)— (62,117)
(1)Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of June 30, 2026, $3,380 is included within Prepaid expenses and other, $2,416 is included within Accrued expenses and other current liabilities and $52,301 is included within Other long-term liabilities. As of December 31, 2025, $63,634 is included within Accrued expenses and other current liabilities and $8,235 is included within Other long-term liabilities.
(2)As of June 30, 2026, cumulative net losses recorded within Accumulated other comprehensive items, net associated with our interest rate swap agreements are $2,945.
(3)As of June 30, 2026, cumulative net losses recorded within Accumulated other comprehensive items, net associated with our cross-currency swap agreements are $48,392. In addition, we have cumulative net gains of $56,800 related to the excluded component of our cross-currency swap agreements recorded within Accumulated other comprehensive items, net.
Unrealized gains (losses) recognized in Accumulated other comprehensive items, net during the three and six months ended June 30, 2026 and 2025, by derivative instrument, are as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
DERIVATIVE INSTRUMENTS2026202520262025
Cash Flow Hedges
Interest rate swap agreements$2,371 $(1,025)$6,807 $(8,018)
Net Investment Hedges
Cross-currency swap agreements3,584 (65,960)13,725 (91,079)
Cross-currency swap agreements (excluded component)(5,911)4,177 (6,807)8,353 
(Losses) gains recognized in Net income (loss) during the three and six months ended June 30, 2026 and 2025, by derivative instrument, are as follows:
LOCATION OF (LOSS) GAINTHREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
DERIVATIVE INSTRUMENTS2026202520262025
Cash Flow Hedges
Interest rate swap agreementsInterest expense$— $— $(1,207)$— 
Net Investment Hedges
Cross-currency swap agreements (excluded component)Interest expense5,911 (4,177)6,807 (8,353)