v3.26.3
Derivative Instruments and Hedging Activities
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Foreign Currency Derivatives
As of September 30, 2026, we had the following outstanding foreign currency forward contracts, which had the below hedge accounting designation in accordance with FASB ASC Topic 815, Derivatives and Hedging:
Notional
(in millions)		Effective Date(s)Maturity Date(s)Index (Exchange Rates)Weighted-Average Strike Rate
Hedge
Designation (1)
379.6 EURVarious from December 2024 to September 2026Various from October 2026 to September 2028Euro ("EUR") to USD1.18 USDCash flow hedge
3,979.6 MXNVarious from December 2024 to September 2026Various from October 2026 to September 2028USD to Mexican Peso ("MXN")19.18 MXNCash flow hedge
67.2 GBPVarious from December 2024 to September 2026Various from October 2026 to September 2028British Pound Sterling ("GBP") to USD1.33 USDCash flow hedge
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(1)    Derivative financial instruments not designated as hedges are used to manage our exposure to currency exchange rate risk. They are intended to preserve economic value, and they are not used for trading or speculative purposes.
As of September 30, 2026, we estimate that $19.5 million of net gain will be reclassified from accumulated other comprehensive income/loss to earnings during the twelve-month period ending September 30, 2027.
Financial Instrument Presentation
The following table presents the fair values of our derivative financial instruments and their classification in the condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025:
Asset DerivativesLiability Derivatives
Balance Sheet LocationSeptember 30,
2026		December 31,
2025		Balance Sheet LocationSeptember 30,
2026		December 31,
2025
Derivatives designated as hedging instruments
Foreign currency forward contractsPrepaid expenses and other current assets$18.4 $14.9 Accrued expenses and other current liabilities$2.8 $13.8 
Foreign currency forward contractsOther assets3.4 3.4 Other long-term liabilities2.1 1.7 
Total$21.8 $18.3 $4.8 $15.5 
Derivatives not designated as hedging instruments
Commodity forward contractsPrepaid expenses and other current assets$7.9 $17.0 Accrued expenses and other current liabilities$0.3 $0.3 
Commodity forward contractsOther assets— 4.2 Other long-term liabilities— — 
Foreign currency forward contractsPrepaid expenses and other current assets— 0.4 Accrued expenses and other current liabilities— 2.3 
Total$7.9 $21.6 $0.3 $2.6 
These fair value measurements were all categorized within Level 2 of the fair value hierarchy.
The following tables present the effect of our derivative financial instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income/(loss) for the three months ended September 30, 2026 and 2025:
Derivatives designated as
hedging instruments		Amount of Deferred Gain/(Loss) Recognized in Other Comprehensive IncomeLocation of Net (Loss)/Gain Reclassified from Accumulated Other Comprehensive Income/Loss into Net Income/(Loss)Amount of Net (Loss)/Gain Reclassified from Accumulated Other Comprehensive Income/Loss into Net Income/(Loss)
2026202520262025
Foreign currency forward contracts$2.9 $1.7 Net revenue$(0.3)$(3.7)
Foreign currency forward contracts$(5.1)$4.7 Cost of revenue$5.4 $(1.0)
Derivatives not designated as
hedging instruments		Amount of (Loss)/Gain Recognized in Net Income/(Loss)Location of (Loss)/Gain Recognized in Net Income/(Loss)
20262025
Commodity forward contracts$1.5 $6.7 Other, net
Foreign currency forward contracts$(0.2)$1.3 Other, net
The following tables present the effect of our derivative financial instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income/(loss) for the nine months ended September 30, 2026 and 2025:
Derivatives designated as
hedging instruments		Amount of Deferred Gain/(Loss) Recognized in Other Comprehensive IncomeLocation of Net (Loss)/Gain Reclassified from Accumulated Other Comprehensive Income/Loss into Net Income/(Loss)Amount of Net (Loss)/Gain Reclassified from Accumulated Other Comprehensive Income/Loss into Net Income/(Loss)
2026202520262025
Foreign currency forward contracts$17.7 $(37.4)Net revenue$(8.3)$0.5 
Foreign currency forward contracts$4.2 $31.3 Cost of revenue$10.8 $(8.5)
Derivatives not designated as
hedging instruments		Amount of Gain/(Loss) Recognized in Net Income/(Loss)Location of Gain/(Loss) Recognized in Net Income/(Loss)
20262025
Commodity forward contracts$2.5 $12.7 Other, net
Foreign currency forward contracts$0.2 $(2.7)Other, net
Credit Risk Related Contingent Features
We have agreements with our derivative counterparties that contain a provision whereby if we default on our indebtedness and repayment of the indebtedness has been accelerated by the lender, then we could also be declared in default on our derivative obligations.
As of September 30, 2026, the termination value of outstanding derivatives in a liability position, excluding any adjustment for non-performance risk, was $5.2 million. As of September 30, 2026, we had not posted any cash collateral related to these agreements. If we breach any of the default provisions on any of our indebtedness as described above, we could be required to settle our obligations under the derivative agreements at their termination values.