v3.26.1
Derivative Instruments and Hedging Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Instruments
17.
Derivative Instruments and Hedging Instruments

The Company's primary market risk is foreign currency exchange rates arising from its non-U.S. operations having functional currencies other than the U.S. Dollar. The Company manages this risk through cross-currency swap agreements and long-term debt designated as net investment hedges. As of June 30, 2026, the Company had several cross-currency swap agreements that qualify for hedge accounting with a notional value of $120.4 million of U.S. Dollar to Swiss Franc and a notional value of $120.4 million of U.S. Dollar to Euro to hedge the variability in the movement of foreign currency exchange rates on portions of its Euro and Swiss Franc denominated net asset investments.

In addition, the Company has foreign currency exposure at a transaction level, which is addressed by forward currency contracts for significant exposures which have not been designated as accounting hedges.

The following table presents the Company’s notional amounts outstanding under foreign exchange contracts, cross-currency interest rate swap agreements, and long-term debt designated as net investment hedges, as well as the respective fair values of the instruments (in millions):

 

 

 

June 30,
2026

 

 

December 31,
2025

 

 

Notional
(in USD)

 

 

Fair Value

 

 

Notional
(in USD)

 

 

Fair Value

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate cross-currency swap agreements

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

240.8

 

 

$

(30.4

)

 

$

248.2

 

 

$

(37.8

)

Long-term debt

 

 

1,628.6

 

 

 

(184.6

)

 

 

1,660.5

 

 

 

(216.0

)

Total derivatives designated as hedging instruments

 

$

1,869.4

 

 

$

(215.0

)

 

$

1,908.7

 

 

$

(253.8

)

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Forward currency contracts

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

$

665.9

 

 

$

2.0

 

 

$

855.8

 

 

$

2.8

 

Other current liabilities

 

 

352.7

 

 

 

(1.3

)

 

 

257.3

 

 

 

(1.0

)

Total derivatives not designated as hedging instruments

 

$

1,018.6

 

 

$

0.7

 

 

$

1,113.1

 

 

$

1.8

 

Total derivatives

 

$

2,888.0

 

 

$

(214.3

)

 

$

3,021.8

 

 

$

(252.0

)

 

The following table is a summary of the gains (losses) included in Interest and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive (loss) income related to the derivative instruments described above (in millions):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Forward currency contracts

 

$

5.4

 

 

$

(26.2

)

 

$

6.0

 

 

$

(22.0

)

Embedded derivatives in purchase and delivery contracts

 

 

(0.1

)

 

 

0.9

 

 

 

(0.2

)

 

 

1.1

 

 

$

5.3

 

 

$

(25.3

)

 

$

5.8

 

 

$

(20.9

)

Derivatives designated as cash flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate cross-currency swap agreements

 

$

—

 

 

$

1.8

 

 

$

—

 

 

$

3.7

 

Derivatives designated as net investment hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate cross-currency swap agreements

 

$

1.1

 

 

$

1.2

 

 

$

2.3

 

 

$

2.5

 

Total

 

$

6.4

 

 

$

(22.3

)

 

$

8.1

 

 

$

(14.7

)

 

The following table is a summary of the gains (losses) included in Accumulated other comprehensive (loss) income, net of tax in the unaudited condensed consolidated statements of operations and comprehensive (loss) income related to the derivative instruments described above (in millions):

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Derivatives designated as cash flow hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate cross-currency swap agreements

 

$

—

 

 

$

(1.4

)

 

$

—

 

 

$

(3.5

)

 

$

—

 

 

$

(1.4

)

 

$

—

 

 

$

(3.5

)

Derivatives designated as net investment hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate cross-currency swap agreements

 

$

2.1

 

 

$

(20.6

)

 

$

4.8

 

 

$

(26.0

)

Long-term debt

 

 

11.7

 

 

 

(126.9

)

 

 

24.0

 

 

 

(158.0

)

 

$

13.8

 

 

$

(147.5

)

 

$

28.8

 

 

$

(184.0

)

Total

 

$

13.8

 

 

$

(148.9

)

 

$

28.8

 

 

$

(187.5

)

 

The Company's exposure to interest rate risk related primarily to outstanding variable rate debt under the U.S. Dollar denominated 2019 Term Loan and adverse movements in the related market rates. This exposure was managed as part of an interest rate swap which involved the Company paying fixed, receiving floating. The interest rate swap agreement was terminated during the third quarter of 2025 following the repayment of the 2019 Term Loan.