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
Derivative Transactions Designated as Hedging Instruments

Cash Flow Hedges

Foreign Currency Contracts

    The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates. The changes in the fair values of these cash flow hedges are recorded in accumulated other comprehensive loss and are subsequently reclassified into “Cost of goods sold” during the period the sales and purchases are recognized. These amounts offset the effect of the changes in foreign currency rates on the related sale and purchase transactions.

    The Company designates certain foreign currency contracts as cash flow hedges of expected future sales and purchases. The total notional value of derivatives that were designated as cash flow hedges was approximately $412.3 million and $210.8 million as of September 30, 2026 and December 31, 2025, respectively.

    The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended September 30, 2026 (in millions):

Before-Tax AmountIncome Tax Expense (Benefit)After-Tax Amount
Accumulated derivative net gains as of June 30, 2026
$1.0 $0.4 $0.6 
Net changes in fair value of derivatives:
Foreign currency contracts(1)
(2.5)(0.4)(2.1)
Total
(2.5)(0.4)(2.1)
Net losses (gains) reclassified from accumulated other comprehensive loss into income:
Foreign currency contracts(1)
4.2 0.8 3.4 
Treasury rate locks
(0.2)— (0.2)
Total4.0 0.8 3.2 
Accumulated derivative net gains as of September 30, 2026
$2.5 $0.8 $1.7 
____________________________________
(1)    The outstanding contracts as of September 30, 2026 range in maturity through December 2027.

    As of September 30, 2026, approximately $0.6 million of realized derivative net losses, before taxes, remain in accumulated other comprehensive loss related to foreign currency contracts associated with inventory that had not yet been sold.
    The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the three months ended September 30, 2025 (in millions):

Before-Tax AmountIncome Tax Expense (Benefit)After-Tax Amount
Accumulated derivative net gains as of June 30, 2025$11.5 $2.4 $9.1 
Net changes in fair value of derivatives:
Foreign currency contracts
(1.4)(0.2)(1.2)
Total
(1.4)(0.2)(1.2)
Net gains reclassified from accumulated other comprehensive loss into income:
Foreign currency contracts
(3.2)(0.6)(2.6)
Treasury rate locks
(0.2)(0.1)(0.1)
Total(3.4)(0.7)(2.7)
Accumulated derivative net gains as of September 30, 2025
$6.7 $1.5 $5.2 

    The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the nine months ended September 30, 2026 (in millions):

Before-Tax AmountIncome Tax Expense (Benefit)After-Tax Amount
Accumulated derivative net gains as of December 31, 2025
$4.6 $1.4 $3.2 
Net changes in fair value of derivatives:
Foreign currency contracts(1)
(10.8)(2.3)(8.5)
Total(10.8)(2.3)(8.5)
Net losses (gains) reclassified from accumulated other comprehensive loss into income:
Foreign currency contracts(1)
9.3 1.8 7.5 
Treasury rate locks(0.6)(0.1)(0.5)
Total8.7 1.7 7.0 
Accumulated derivative net gains as of September 30, 2026
$2.5 $0.8 $1.7 
____________________________________
(1)    The outstanding contracts as of September 30, 2026 range in maturity through December 2027.
    The following table summarizes the activity in accumulated other comprehensive loss related to the derivatives held by the Company during the nine months ended September 30, 2025 (in millions):

Before-Tax AmountIncome Tax Expense (Benefit)After-Tax Amount
Accumulated derivative net gains as of December 31, 2024
$11.7 $2.8 $8.9 
Net changes in fair value of derivatives:
Foreign currency contracts
2.5 0.6 1.9 
Total
2.5 0.6 1.9 
Net gains reclassified from accumulated other comprehensive loss into income:
Foreign currency contracts
(6.9)(1.7)(5.2)
Treasury rate locks
(0.6)(0.2)(0.4)
Total(7.5)(1.9)(5.6)
Accumulated derivative net gains as of September 30, 2025
$6.7 $1.5 $5.2 

Net Investment Hedges

    The Company uses non-derivative and derivative instruments to hedge a portion of its net investment in foreign operations against adverse movements in exchange rates. For instruments that are designated as hedges of net investments in foreign operations, changes in the fair value of the derivative instruments are recorded in foreign currency translation adjustments, a component of accumulated other comprehensive loss, to offset changes in the value of the net investments being hedged. When the net investment in foreign operations is sold or substantially liquidates, the amounts recorded in accumulated other comprehensive loss are reclassified to earnings. To the extent foreign currency denominated debt is de-designated from a net investment hedge relationship, changes in the value of the foreign currency denominated debt are recorded in earnings through the maturity date.

    On November 4, 2024, the Company entered into $600.0 million cross currency swap contracts comprising a $200.0 million tranche with a three-year tenor, $200.0 million tranche with a five-year tenor and $200.0 million tranche with a seven-year tenor as a hedge of its net investment in foreign operations to offset foreign currency translation gains or losses on the net investment. The cross currency swap contracts have expiration dates of November 6, 2027, November 6, 2029 and November 6, 2031, respectively. At maturity of the cross currency swap contracts, the Company is expected to deliver the notional amounts of approximately €385.5 million (or approximately $437.8 million as of September 30, 2026) and Fr.155.5 million (or approximately $186.4 million as of September 30, 2026) and receive $600.0 million from the counterparties. The Company receives quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swap contracts.

    The following table summarizes the notional values of the instrument designated as a net investment hedge (in millions):

Notional Amount as of
September 30, 2026December 31, 2025
Cross currency swap contracts
$600.0 $600.0 
    The following table summarizes the changes in the fair value of the cross currency swap contracts designated as a net investment hedge during the three and nine months ended September 30, 2026 and 2025 (in millions):

Gain (Loss) Recognized in Other Comprehensive Income for the
Three Months Ended
Gain (Loss) Recognized in Other Comprehensive Income for the
Nine Months Ended
Before-Tax AmountIncome Tax Expense (Benefit)
After-Tax Amount
Before-Tax AmountIncome Tax Expense (Benefit)After-Tax Amount
September 30, 2026$3.9 $1.0 $2.9 $10.1 $2.6 $7.5 
September 30, 20250.7 0.2 0.5 (58.6)(15.1)(43.5)

Derivative Transactions Not Designated as Hedging Instruments

    The Company enters into foreign currency contracts to economically hedge a portion of its receivables and payables on the Company and its subsidiaries’ balance sheets that are denominated in foreign currencies other than the functional currency. These contracts are classified as non-designated derivative instruments. Gains and losses on such contracts are substantially offset by losses and gains on the remeasurement of the underlying asset or liability being hedged and are immediately recognized into earnings. As of September 30, 2026 and December 31, 2025, the Company had outstanding foreign currency contracts with a notional amount of approximately $1,958.0 million and $2,865.7 million, respectively.

    The following table summarizes the results on net income of derivatives not designated as hedging instruments (in millions):

Gain (Loss) Recognized in Net Income for the Three Months Ended
Gain (Loss) Recognized in Net Income for the Nine Months Ended
Classification of Gain (Loss)
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Foreign currency contractsOther expense (income), net$(2.8)$(11.6)$(38.2)$32.3 
    The table below sets forth the fair value of derivative instruments as of September 30, 2026 (in millions):

Asset Derivatives as of
September 30, 2026
Liability Derivatives as of
September 30, 2026
Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivative instruments designated as hedging instruments:
Foreign currency contractsOther current assets$2.5 Other current liabilities$5.6 
Cross currency swap contracts
Other noncurrent assets— Other noncurrent liabilities27.1 
Derivative instruments not designated as hedging instruments:
Foreign currency contracts(1)
Other current assets6.7 Other current liabilities6.6 
Total derivative instruments$9.2 $39.3 
____________________________________
(1)    The outstanding contracts as of September 30, 2026 range in maturity through November 2026.

    The table below sets forth the fair value of derivative instruments as of December 31, 2025 (in millions):

Asset Derivatives as of
December 31, 2025
Liability Derivatives as of
December 31, 2025
Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivative instruments designated as hedging instruments:
Foreign currency contractsOther current assets$0.8 Other current liabilities$2.5 
Cross currency swap contracts
Other noncurrent assets— Other noncurrent liabilities37.2 
Derivative instruments not designated as hedging instruments:
Foreign currency contracts
Other current assets19.4 Other current liabilities8.7 
Total derivative instruments$20.2 $48.4