The Company is exposed to various market risks including, but not limited to, changes in foreign currency exchange rates, changes in interest rates and price fluctuations of certain material commodities.

The Company regularly enters into derivative contracts with the objective of managing its financial and operational exposure arising from these risks by offsetting gains and losses on the underlying exposures with gains and losses on the financial instruments used to hedge them. The decision of whether and when to execute derivative financial instruments, along with the duration of the instrument, may vary from period to period depending on market conditions, the relative costs of the instruments and capacity to hedge. The duration is linked to the timing of the underlying exposure, with the connection between the two being regularly monitored. The Company does not enter into derivative financial instruments for speculative or trading purposes.

Information related to the recurring fair value measurement of derivative financial instruments in the consolidated condensed balance sheet as of September 30, 2026 is as follows:


				Asset Derivatives			Liability Derivatives
	Fair Value Hierarchy	Notional Amount		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Net Assets/ (Liabilities)
Derivatives Designated as Cash Flow Hedges
Foreign currency derivatives	Level 2	$	127,103	Other current assets	$	—	Other current liabilities	$	3,275	$	(3,275	)
Interest rate contracts	Level 2	$	100,000	Other current assets	$	905	Other current liabilities	$	—	$	905

Information related to the recurring fair value measurement of derivative instruments in the consolidated condensed balance sheet as of December 31, 2025 is as follows:


				Asset Derivatives			Liability Derivatives
	Fair Value Hierarchy	Notional Amount		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Net Assets/ (Liabilities)
Derivatives Designated as Cash Flow Hedges
Foreign currency derivatives	Level 2	$	35,122	Other current assets	$	4,521	Other current liabilities	$	—	$	4,521
Interest rate contracts	Level 2	$	100,000	Other current assets	$	—	Other current liabilities	$	775	$	(775	)

Information relating to the effect of derivative instruments on the consolidated condensed statements of (loss) income and the consolidated condensed statements of comprehensive (loss) income is as follows:


		Three Months Ended September 30,						Nine Months Ended September 30,
	Location (Income/(Loss))	2026			2025			2026			2025
Derivatives Designated as Cash Flow Hedges
Foreign currency derivatives	Cost of sales	$	282		$	2,086		$	6,469		$	273
	Other comprehensive (loss) income, net of tax		(2,924	)		91			(7,797	)		9,844
Total foreign currency derivatives		$	(2,642	)	$	2,177		$	(1,328	)	$	10,117

Interest rate contracts	Interest expense, net	$	(7	)	$	156		$	(32	)	$	156
	Other comprehensive (loss) income, net of tax		588			(58	)		1,680			(757	)
Total interest rate derivatives		$	581		$	98		$	1,648		$	(601	)

Derivatives Not Designated as Hedging Instruments
Interest rate contracts	Interest expense, net	$	—		$	(104	)	$	—		$	(719	)
Total interest rate derivatives		$	—		$	(104	)	$	—		$	(719	)

The Company did not incur any hedge ineffectiveness during the three and nine months ended September 30, 2026 and 2025.