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| Debt | Debt The following table presents the carrying value of the Company’s outstanding indebtedness and a reconciliation to Debt as presented on the Consolidated Balance Sheets:
The Company’s debt instruments are carried at amortized cost. Unamortized discounts and debt issuance costs associated with its debt instruments, with the exception of the Company’s senior unsecured multicurrency revolving credit facility (the “revolver”), are presented on the Consolidated Balance Sheets as an adjustment to the carrying value of the associated debt. Senior Bank Debt As of June 30, 2026, the Company had a $1.25 billion revolver. The Company amended and restated the revolver in June 2026, extending the maturity from November 15, 2029 to June 9, 2031. Subject to certain conditions, the Company may increase the commitments under the revolver by up to an additional $750.0 million. The Company pays interest on any outstanding obligations under the revolver at a specified rate, currently based either on an applicable term-SOFR, or prime rate, plus a marginal rate determined based on its credit rating. As of December 31, 2025, the Company had no outstanding borrowings under the revolver. As of June 30, 2026, the Company had outstanding borrowings under the revolver of $650.0 million and the weighted-average interest rate on outstanding borrowings was 4.62%. Senior Notes As of June 30, 2026, the Company had senior notes outstanding. The carrying values of the senior notes are accreted to their principal amount at maturity over the remaining life of the underlying instrument. The principal terms of the senior notes outstanding as of June 30, 2026 are presented and described below:
In addition to customary event of default provisions, the indenture governing the senior notes, including the applicable supplemental indentures with respect to the 2030, 2034, and 2036 senior notes, limits the Company’s ability to consolidate, merge, or sell all or substantially all of its assets, and requires the Company to make an offer to repurchase the applicable senior notes at 101% of the principal amount, plus any accrued and unpaid interest thereon to, but not including, the date of repurchase, upon certain change of control triggering events. The senior notes may be redeemed, in whole or in part, at a make- whole redemption price (plus accrued and unpaid interest), at any time prior to March 15, 2030, in the case of the 2030 senior notes, at any time prior to May 20, 2034, in the case of the 2034 senior notes, and at any time prior to November 15, 2035, in the case of the 2036 senior notes. The make-whole redemption price, in each case, is equal to the greater of 100% of the principal amount of the notes to be redeemed and the remaining principal and interest payments on the notes being redeemed (excluding accrued but unpaid interest to, but not including, the redemption date) discounted to their present value as of the redemption date on a semi-annual basis at the applicable Treasury rate plus 0.40%, in the case of the 2030 senior notes, and plus 0.25%, in the case of the 2034 and 2036 senior notes. In addition, the 2030, 2034, and 2036 senior notes may be redeemed, in whole or in part, at any time, on or after March 15, 2030, May 20, 2034, and November 15, 2035, respectively, at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. Junior Subordinated Notes As of June 30, 2026, the Company had junior subordinated notes outstanding, the respective principal terms of which are presented and described below:
As of June 30, 2026, each of the 2059 and the 2060 junior subordinated notes could be redeemed at any time, in whole or in part. The other junior subordinated notes may be redeemed at any time, in whole or in part, on or after September 30, 2026, in the case of the 2061 junior subordinated notes, and on or after March 30, 2029, in the case of the 2064 junior subordinated notes. In each case, the junior subordinated notes may be redeemed at 100% of the principal amount of the notes being redeemed, plus any accrued and unpaid interest thereon. Prior to the applicable redemption date, at the Company’s option, the applicable junior subordinated notes may also be redeemed, in whole but not in part, at 100% of the principal amount, plus any accrued and unpaid interest, if certain changes in tax laws, regulations, or interpretations occur; or at 102% of the principal amount, plus any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for securities with features similar to the applicable notes. The Company may, at its option, and subject to certain conditions and restrictions, defer interest payments subject to the terms of the junior subordinated notes. Junior Convertible Securities On December 8, 2025, the Company delivered notice that it had elected to redeem all of its outstanding 5.15% junior convertible trust preferred securities (the “junior convertible securities”) on December 29, 2025 (the “Redemption Date”), and announced its intention to settle any and all conversion obligations in cash. Substantially all holders of the junior convertible securities delivered requests to convert their securities prior to the Redemption Date. On December 15, 2025 (the “Election Date”), the Company made an irrevocable election to settle its conversion obligations in cash by reference to the daily volume weighted average price of the Company’s common stock during each applicable trading day conversion reference period. These conversions resulted in a settlement value in excess of the associated carrying value (the “conversion premium”). As of December 31, 2025, the conversion premium of $155.5 million was recorded within Other liabilities, with a corresponding reduction to Additional paid-in capital. In addition, the conversion resulted in a reduction to Deferred tax liability (net) on the Consolidated Balance Sheets of $38.9 million, with a corresponding increase to Additional paid-in capital. The Company’s election to settle each applicable conversion premium in cash using a ten-day reference period was accounted for as a forward sale contract, which resulted in a $9.2 million expense recorded in Other expenses (net), in the fourth quarter of 2025. On the Redemption Date, the Company redeemed $1.1 million of junior convertible securities which were not converted, reflecting the principal amount of the redeemed securities, plus accrued and unpaid interest, up to, but not including, the Redemption Date. In January 2026, the Company settled each of its applicable conversion obligations in cash for an aggregate amount of $514.6 million which resulted in an incremental expense related to the forward sale contract of $9.3 million. The junior convertible securities were considered contingent payment debt instruments under federal income tax regulations, which required the Company to deduct interest in an amount greater than its reported interest expense (“excess interest expense deductions”). As a result of the settlement of these securities, the Company incurred a current cash tax liability of approximately $56 million, reflective of the recapture of excess interest expense deductions. Prior to their redemption by the Company or requests for conversion by the holders, as applicable and described above, the junior convertible securities bore interest at a rate of 5.15% per annum, which interest payments were payable quarterly in cash. For the three months ended June 30, 2025, the Company recorded interest expense of $4.5 million, in connection with the junior convertible securities, including contractual interest expense and amortization of debt issuance costs of $4.4 million and $0.1 million, respectively. For the six months ended June 30, 2025, the Company recorded interest expense of $8.9 million, in connection with the junior convertible securities, including contractual interest expense and amortization of debt issuance costs of $8.8 million and $0.1 million, respectively. For the three and six months ended June 30, 2025, the effective interest rate was 5.21%.
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