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Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Designated Non-derivative Financial Instruments

During the six months ended June 30, 2026, the Australian dollar-denominated Senior Unsecured Revolving Credit Facility, that was previously held by the Company’s United States-based subsidiary, was fully repaid and redrawn by its Australian-based subsidiary. As a result, the Company no longer designated the revolver draw as a hedge of its net investment in its Australian-based subsidiary as of June 30, 2026.

As of June 30, 2026, the Company designated €820.5 million of debt and accrued interest as a hedge of its net investment in its Europe-based subsidiary. As of December 31, 2025, the Company designated A$207.5 million and €820.5 million of debt and accrued interest as a hedge of its net investment in its Australian-based and Europe-based subsidiaries, respectively. The remeasurement of these instruments is recorded in “Unrealized net gain (loss) on foreign currency” on the accompanying Condensed Consolidated Statements of Comprehensive Loss.
Derivative Financial Instruments
The Company is subject to volatility in interest rates due to its variable-rate debt. To manage this risk, the Company periodically enters into interest rate swap agreements. These agreements involve the receipt of variable-rate amounts in exchange for fixed-rate interest payments over the life of the respective swap agreement without an exchange of the underlying notional amounts. The Company’s objective for utilizing these derivative instruments is to reduce its exposure to fluctuations in cash flows due to changes in interest rates.
During the three months ended June 30, 2026, the Company de-designated and subsequently terminated interest rate swap agreements with notional amounts of $200 million, $175 million, and $270 million due to a change in the facts and circumstances associated with the forecasted transactions. Upon termination, the Company received cash proceeds of $6.4 million. As a result, the Company recognized a gain of $5.9 million in “Other, net” on the accompanying Condensed Consolidated Statements of Operations. The gain includes changes in the fair value of the swaps between the de-designation and termination dates of $2.0 million, as well as the reclassification of amounts previously recorded in Accumulated other comprehensive loss (“AOCI”) related to the forecasted transactions that are no longer probable of occurring of $3.9 million. The remaining AOCI balance associated with these hedges is immaterial and will continue to be reclassified into “Interest expense” on the accompanying Condensed Consolidated Statements of Operations through the expected repayment date of the related debt.
The following tables include the key provisions of the Company’s interest rate swap agreements, including the fair value, as of June 30, 2026 and December 31, 2025:
NotionalFixed Base Interest Rate SwapEffective DateExpiration Date
Asset Fair Value as of June 30, 2026
Liability Fair Value as of June 30, 2026
(In thousands)
C$250 million
3.59%9/23/202212/31/2027$— $1,939 
Total$— $1,939 
NotionalFixed Base Interest Rate SwapEffective DateExpiration Date
Asset Fair Value as of December 31, 2025
Liability Fair Value as of December 31, 2025
(In thousands)
$200 million
3.05%12/29/20237/30/2027$736 $— 
$175 million
3.47%11/30/20227/30/2027— 493 
$270 million
3.05%11/01/202212/31/20271,170 — 
C$250 million
3.59%9/23/202212/31/2027— 2,910 
Total$1,906 $3,403 
The Company determines the fair value of its derivative instruments using a present value calculation with significant observable inputs classified as Level 2 of the fair value hierarchy. Derivative asset balances are recorded on the accompanying Condensed Consolidated Balance Sheets within “Other assets” and derivative liability balances are recorded on the accompanying Condensed Consolidated Balance Sheets within “Accounts payable and accrued expenses”.
There have been no significant changes to our policy or strategy related to derivative financial instruments, outside of those changes described above, from that disclosed in our 2025 Annual Report on Form 10-K.
For derivatives designated and that qualify as cash flow hedges, the gain or loss on the derivative instrument is recorded as “Unrealized net loss on cash flow hedges” on the accompanying Condensed Consolidated Statements of Comprehensive Loss and subsequently reclassified in the period(s) during which the hedged transaction affects earnings within the same income statement and related cash flow line items as the earnings effect of the hedged transaction. During the next twelve months, the Company estimates that an additional $1.0 million will be reclassified as an increase to “Interest expense”.
The following tables present the effect of the Company’s designated derivative financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025, including the impacts to Accumulated other comprehensive loss (“AOCI”):
Amount of Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Interest rate swaps$134 $(1,306)$4,439 $(7,827)
Treasury locks— — — 1,292 
Foreign currency exchange forwards— (1,598)— (1,598)
Cross-currency swap— (5,266)— (7,806)
Total designated derivative financial instruments$134 $(8,170)$4,439 $(15,939)
Location of Gain or (Loss) Reclassified from AOCI into EarningsAmount of Gain or (Loss) to Earnings from AOCI Reclassifications
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Interest rate swapsInterest expense$285 $1,653 $675 $3,452 
Interest rate swapsOther, net3,869 — 3,869 — 
Treasury locksInterest expense46 45 92 45 
Cross-currency swapForeign currency exchange loss, net— (5,126)— (6,021)
Cross-currency swapInterest expense— 50 — 213 
Total designated derivative financial instruments$4,200 $(3,378)$4,636 $(2,311)
The Company’s derivatives are subject to master netting agreements. There were no impacts from offsetting as of June 30, 2026 and the impacts from offsetting were immaterial as of December 31, 2025.
As of June 30, 2026 and December 31, 2025, the Company has not posted any collateral related to these agreements. The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness.