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| FAIR VALUE MEASUREMENTS | 16. FAIR VALUE MEASUREMENTS In accordance with ASC 820-10, the Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. This determination requires significant judgments to be made by the Company. The Company’s financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments as of the following dates:
Additional information is provided below about assets and liabilities remeasured at fair value on a recurring basis. Foreign currency forward contracts Foreign currency forward contracts are measured at fair value on a recurring basis and are classified as Level 2 within the fair value hierarchy. Fair value is determined using valuation techniques that utilize observable inputs, including forward exchange rates and discount factors, adjusted for credit risk as appropriate. Derivative financial assets are included in prepaid expenses and other current assets and other long-term assets, while derivative financial liabilities are included in other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. Foreign currency forward contracts – cash flow hedges The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted Canadian-dollar-denominated expenditures. For the three and six months ended June 30, 2026, unrealized gains and losses related to these derivatives were recorded in other comprehensive income (loss). Amounts reclassified into earnings during the three and six months ended June 30, 2026 was $0.5 and $0.5, respectively. All foreign exchange cash flow hedges were effective for the periods presented. As of June 30, 2026, the notional amount of foreign currency forward contracts related to Canadian dollar hedges for the years 2026, 2027, and 2028 were $130.4, $160.0, and $32.0, respectively, which were hedged at an average rate of 1.365, 1.356, and 1.349 Canadian dollars per U.S. dollar, respectively. A 1% change in the value of the Canadian dollar against the U.S. dollar would increase or other comprehensive income (loss) by $2.2. Interest rate swap The Company previously managed interest rate risk on variable interest rate debt obligations through interest rate swap agreements. The interest rate swap was settled in December 2025 and is no longer outstanding as of June 30, 2026. See Note 11. |
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