v3.26.1
Derivatives
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
 
The Company utilizes a variety of practices including derivative instruments to manage risk associated with foreign currency exchange rate risk and interest rate risk on its variable-rate debt. The Company has no derivative instruments for trading or speculative purposes or derivatives with credit risk-related contingent features. All derivative instruments used by the Company are either exchange traded or are entered into with major financial institutions to reduce credit risk and risk of nonperformance by third parties. The fair values of the Company’s derivative instruments are determined using observable inputs and are considered Level 2 assets or liabilities.
Foreign Currency Risk Management

The Company utilizes currency forward and swap contracts to selectively hedge its exposure to foreign currency risk when it is practical and economical to do so. We may designate certain of our foreign currency hedges as cash flow hedges. Changes in the fair value of cash flow hedges are reported as a component of Accumulated other comprehensive income (loss), net of tax and reclassified into earnings when the forecasted transaction affects earnings. Changes in the fair value of foreign exchange contracts not designated as hedges are recorded to Net income (loss) each period.

The Company also uses cross-currency swap contracts to selectively hedge its exposure to foreign currency related changes in our net investments in certain foreign operations. We designate these cross-currency swap contracts as net investment hedges based on the spot rate of the EUR. Changes in the fair value of these hedges are deferred within the foreign currency translation component of Accumulated other comprehensive income (loss), net of tax and reclassified into earnings when the foreign investment is sold or substantially liquidated. Future changes in the components related to the spot change on the notional will be recorded in Other Comprehensive Income ("OCI") and remain there until the hedged subsidiaries are substantially liquidated. Gains and losses excluded from the assessment of hedge effectiveness are recognized in earnings (Interest expense) over the term of the swap. Gains and losses associated with the settlement of derivative instruments designated as a net investment hedge are classified within investing activities in the Condensed Consolidated Statement of Cash Flows. As of June 30, 2026 and December 31, 2025 the gross notional amount of outstanding cross-currency swaps contracts designated as a net investment hedge was €450 million.
Interest Rate Risk Management

The Company selectively hedges its exposure to interest rate increases on variable-rate, long-term debt when it is practical and economical to do so. Changes in the fair value of pay-fixed, receive-variable interest rate swap contracts considered cash flow hedges are reported as a component of Accumulated other comprehensive income (loss), net of tax and reclassified into earnings when the forecasted transaction affects earnings. The terms of the interest rate swaps mirror the terms of the underlying debt, including timing of the payments and interest rates. As of June 30, 2026 and December 31, 2025 the gross notional amounts of outstanding interest rate swaps designated as a cash flow hedge was $480.8 million.
The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at June 30, 2026 (in millions):
Asset DerivativesLiability Derivatives
Balance Sheet
Location		Fair
Value		Balance Sheet
Location		Fair
Value
Derivatives designated as hedges:
Foreign exchange contracts
Accounts receivable, net$1.3 Accounts payable$9.1 
Foreign exchange contracts
Other assets— Other liabilities30.8 
Interest rate contracts
Accounts receivable, net1.2 Accrued expenses and other current liabilities— 
Interest rate contracts
Other assets2.4 Other liabilities— 
Total derivatives designated as hedges4.9 39.9 
Derivatives not designated as hedges:
Foreign exchange contractsAccounts receivable, net— Accrued expenses and other current liabilities0.1 
Total derivatives not designated as hedges— 0.1 
Total derivatives$4.9 $40.0 

The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2025 (in millions): 
Asset DerivativesLiability Derivatives
Balance Sheet
Location		Fair
Value		Balance Sheet
Location		Fair
Value
Derivatives designated as hedges:
Foreign exchange contracts
Accounts receivable, net$1.1 Accrued expenses and other current liabilities$— 
Foreign exchange contracts
Other assets— Other liabilities53.2 
Interest rate contracts
Other assets1.1 Other liabilities0.3 
Total derivatives designated as hedges2.2 53.5 
Derivatives not designated as hedges:
Foreign exchange contractsAccounts receivable, net— Accrued expenses and other current liabilities0.1 
Total derivatives not designated as hedges— 0.1 
Total derivatives$2.2 $53.6 
Gains (losses) on derivatives designated as cash flow and net investment hedges recognized in other comprehensive income (loss) are summarized below (in millions) on a pretax basis:
Derivatives Designated in Hedging Relationships
Gains (Losses) Recognized in Accumulated Other Comprehensive Income (Loss)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Derivatives designated as cash flow hedge
Amounts included in assessment of effectiveness
$1.7 $(1.1)$3.9 $(4.1)
Derivatives designated as net investment hedge
Amounts included in assessment of effectiveness
3.2 (44.1)13.2 (61.8)
Total gain (loss)
$4.9 $(45.2)$17.1 $(65.9)

The Company's designated derivative instruments are highly effective. As such, there were no gains or losses recognized immediately in income related to the hedge ineffectiveness or amounts excluded from hedge effectiveness testing for the three and six months ended June 30, 2026 or 2025, other than those related to derivatives designated as a net investment hedge, noted below.

Gains (losses) on derivatives within the Condensed Consolidated Statement of Income (Loss) were as follows (in millions):
Location of Gains (Losses)
Amount of Gains (Losses) Recognized
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Effect of cash flow hedges
Amount reclassified from Accumulated other comprehensive income (loss) to income
Interest expense
$2.1 $3.8 $4.3 $7.7 
Effect of net investment hedges
Amount excluded from assessment of hedge effectiveness
Interest expense
1.5 1.6 3.0 3.6 
Effect of non-designated hedges
Foreign exchange contracts
Other income
(0.6)4.8 (0.4)4.9 
Total gain
$3.0 $10.2 $6.9 $16.2 
Deferred gains of $5.5 million attributable to settled interest rate swaps designated as cash flow hedges are expected to be reclassified to Interest expense over the next twelve months.