v3.26.1
Derivatives
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company periodically enters into interest rate swaps to reduce its exposure to fluctuations in interest rates on variable-rate debt (cash flow hedges) and foreign exchange forward contracts to reduce its exposure to foreign currency exchange rates (economic hedges).
The line-items and fair values for these instruments included in the Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 was as follows (in thousands):
June 30, 2026December 31, 2025
Interest rate swaps (designated as hedging instruments)
Prepaid expenses and other assets$4,537 $2,190 
Other liabilities4,449 10,323 
Foreign exchange forward contracts (not designated as hedging instruments)
Prepaid expenses and other assets1,247 914 
Other liabilities3,538 2,062 
Derivatives designated as hedging instruments
The effects of interest rate swaps designated as cash flow hedging instruments for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
Gain/(loss) recognized in OCI, net of tax
Three Months Ended June 30,Six Months Ended June 30,
Hedging instrument2026202520262025
Interest rate swaps$(2,653)$(4,086)$5,430 $(4,010)
Gain/(loss) reclassified from OCI into income
Three Months Ended June 30,Six Months Ended June 30,
Included in Income statement line-item2026202520262025
Interest expense, net$(604)$2,914 $(940)$5,577 
As of June 30, 2026 and December 31, 2025, the notional amount of outstanding interest rate swaps was $723.1 million and $883.0 million, respectively. These swaps remained highly effective as of June 30, 2026 and have remaining terms ranging from seven months to approximately four years. As of June 30, 2026, the Company estimates that approximately $0.6 million net derivative losses included in other comprehensive income ("OCI") will be reclassified into earnings within the next 12 months.
Derivatives not designated as hedging instruments
The effects of foreign exchange forward contracts not designated as hedging instruments for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Included in Income Statement line-item2026202520262025
Foreign exchange gain/(loss), net$209 $(17,190)$8,888 $(15,696)
Interest expense, net268 150 619 (1)
As of June 30, 2026 and December 31, 2025, the notional amount of outstanding foreign exchange forward contracts was $443.7 million and $444.2 million, respectively.
Offsetting
The Company's policy is to report derivative asset and liability positions on a gross basis. As of June 30, 2026, none of the open derivative positions would have been eligible for offsetting under the terms of the Company's netting agreements.