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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
We utilize derivative instruments to manage exposures to risks that have been identified, measured and are capable of being mitigated. The primary risks that we manage by using derivative instruments are commodity price risk associated with copper, fuel oil, foreign currency exchange risk and interest rate risk associated with variable rate borrowings. Generally, we enter into master netting arrangements with the counterparties and offset net derivative positions with the same counterparties. Currently, our agreements do not require cash collateral.
The Company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet. The derivative instruments are classified as current or noncurrent based upon the expected timing of cash flows and are subject to offset under our master netting arrangements. A derivative instrument's fair value is determined using significant other observable inputs, a Level 2 fair value measurement.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing hedge ineffectiveness are recognized in current earnings. In our condensed consolidated statement of cash flows, settlements of derivative instruments are classified as operating activities.
Swap contracts on copper are used to manage the price risk associated with forecasted purchases of materials used in our manufacturing processes. Generally, we will not hedge cash flow exposures for durations longer than 36 months and we have hedged certain volumes of copper through the end of 2027. Prior to July 2025, we designated certain of our commodity swaps as cash flow hedges of forecasted purchases of commodities. For those commodity swaps where hedge accounting is not elected, the unrealized gain or loss on the derivative is reported as cost of sales in the condensed consolidated statement of operations.
During the third quarter of 2025, our quarterly effectiveness assessment identified that our hedging contracts had fallen outside the required effectiveness thresholds to continue cash flow hedge accounting. This was caused by the increased and cumulative volatility in the market prices for copper during the first half of 2025. Accordingly, we prospectively discontinued cash flow hedge accounting in the third quarter of 2025. As of June 30, 2026, $1.3 million remained in accumulated other comprehensive income and will be released to income as the underlying hedge contracts mature through December 2026. Subsequent changes in the fair value of these copper swap contracts will continue to be recognized immediately in earnings until such swap contracts settle or mature.
We enter into heating oil swap contracts to manage price risk associated with fuel oil purchases for our plant operations and certain raw material requirements. Generally, we will not hedge cash flow exposures for durations longer than 36 months and we have hedged certain volumes of heating oil through the end of 2027. These swap contracts are not designated as hedges so the unrealized gain or loss on the derivative is reported as cost of sales in the condensed consolidated statement of operations. As of June 30, 2026 and December 31, 2025, we had contracts totaling 2.9 million and 3.8 million gallons, respectively.
We enter into foreign currency forward contracts to manage foreign currency risk associated with our receivable and payable balances in addition to foreign-denominated sales. These forward contracts related to foreign currency are not designated as hedges so the unrealized gain or loss on the derivative is reported as cost of sales in the condensed consolidated statement of operations.
We enter into interest rate swaps to effectively convert portions of our variable interest rate debt into fixed rate debt to add stability to interest expense and to manage our exposure to interest rate movements. In 2023, we entered into interest rate swap agreements with an aggregate notional amount of $400.0 million at a weighted average fixed Secured Overnight Financing Rate (SOFR) of 3.97 percent. These swap agreements expire in April 2027. During the second quarter of 2026, we entered into forward-starting interest rate swap agreements that commence in April 2027. These swaps have aggregate notional amounts of $100.0 million, $150.0 million and $150.0 million, at a weighted average fixed SOFR of 4.10 percent, 4.01 percent and 3.99 percent, and expire in April 2028, April 2029 and April 2030, respectively. The interest rate swaps have been designated as cash flow hedges on interest payments involving the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.
See the condensed consolidated statement of comprehensive income and condensed consolidated statement of shareholders' equity for amounts recorded in other comprehensive income and for amounts reclassified from accumulated other comprehensive income into net income.
The fair value of the outstanding derivative contracts recorded in the balance sheet are as follows:
June 30, 2026
Copper Swap ContractsHeating Oil ContractsForeign Currency Forward
Contracts		Interest Rate Swap ContractsTotal
(Dollars in millions)
Derivative contracts$20.8 $1.7 $0.0 $0.7 $23.2 
Other assets0.0 0.4 0.0 0.0 0.4 
Accrued liabilities0.0 0.0 (0.1)(0.8)(0.9)
Other long-term liabilities(0.6)0.0 0.0 (1.1)(1.7)
Net asset (liability) on balance sheet$20.2 $2.1 $(0.1)$(1.2)$21.0 
Accumulated other comprehensive gain, net of tax$1.7 $0.0 $0.0 $0.9 $2.6 
December 31, 2025
Copper Swap ContractsHeating Oil ContractsForeign Currency Forward
Contracts		Interest Rate Swap ContractsTotal
(Dollars in millions)
Derivative contracts$31.4 $0.0 $0.0 $0.1 $31.5 
Accrued liabilities0.0 (0.4)0.0 (2.2)(2.6)
Other long-term liabilities0.0 0.0 0.0 (1.1)(1.1)
Net asset (liability) on balance sheet$31.4 $(0.4)$0.0 $(3.2)$27.8 
Accumulated other comprehensive gain (loss), net of tax$2.5 $0.0 $0.0 $(2.4)$0.1 
We estimate that unrealized gains, net of tax, for commodity price hedging of $0.7 million and unrealized losses, net of tax, for interest rate swaps of $0.1 million, respectively, will be reclassified from other comprehensive income into earnings over the next twelve months.
The unrealized gain (loss) from our hedging contracts is as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in millions)
Copper swap contracts$(2.1)$0.6 $(9.4)$9.6 
Heating oil contracts(0.8)0.0 2.6 0.2 
Foreign currency forward contracts0.0 0.1 (0.1)0.6 
Copper Swap Contracts – We had outstanding copper swap contracts of the following amounts:
Units Outstanding (in Pounds)Net Fair Value – Asset
June 30, 2026December 31, 2025June 30, 2026December 31, 2025
(Amounts in millions)
Not designated as hedges26.8 25.6 $20.2 $31.4 
Foreign Currency Forward Contracts – The net currency units outstanding for contracts were:
June 30, 2026December 31, 2025
(In millions)
Australian DollarsAUD3.2 AUD0.0 
British Pound SterlingGBP0.0 GBP0.3 
United States DollarsUSD6.0 USD9.2