Debt |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | 7. Debt The following tables present the Company’s indebtedness as reported on the Unaudited Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025:
Interest expense related to long-term debt included in Interest expense, net on the Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2026 was $23.3 million, and $68.3 million, respectively, and for the three and nine months ended September 30, 2025 was $24.8 million, and $71.2 million, respectively. The amortization of debt issuance costs included in Interest expense, net on the Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2026 was $0.7 million, and $2.2 million, respectively, and for the three and nine months ended September 30, 2025 was $0.7 million, and $2.1 million, respectively. Revolving Credit Agreement The Company is party to a senior secured revolving credit facility with a five-year maturity with a syndicate of banks (as amended the “Credit Agreement”). The Credit Agreement provides for revolving commitments of up to $750 million and matures on April 23, 2030. On March 27, 2026, the Company entered into Amendment No. 2 to the Second Amended and Restated Credit Agreement, which expanded its ability to borrow in non-U.S. dollar currencies and increased the annual limits on certain permitted restricted payments, including stock repurchases or redemptions and repurchases of equity interests from Company employees. A portion of the Credit Agreement in an amount not to exceed $50.0 million is available for the issuance of standby letters of credit. As of September 30, 2026 and December 31, 2025, the Company had issued undrawn outstanding letters of credit of $16.0 million and $15.1 million, respectively. As of September 30, 2026, the Company had $323.7 million of borrowings outstanding and $16.0 million of issued and undrawn letters of credit, resulting in $410.3 million of unused borrowing capacity under the Credit Agreement. Borrowings under the Credit Agreement bear interest at variable rates determined based on the currency of the borrowing and the interest rate option selected by the Company. U.S. dollar borrowings bear interest at either the Adjusted Term Secured Overnight Financing Rate (“SOFR”) or an Alternate Base Rate plus an applicable margin. The Alternate Base Rate is based on the highest of the prime rate, the federal funds effective rate plus 0.50%, or Adjusted Term SOFR plus 1.00%. Euro denominated borrowings bear interest at the Adjusted Euro Interbank Offered Rate (“EURIBOR”), Sterling denominated borrowings bear interest at the Adjusted daily Sterling Overnight Index Average (“SONIA”) based risk free rate, and Canadian dollar borrowings bear interest at the Adjusted Term Canadian Overnight Repo Rate Average (“CORRA”), in each case plus an applicable margin. The applicable margin is determined based on the Company’s Total Leverage Ratio, as defined in the Credit Agreement. The Credit Agreement contains a number of financial and non-financial covenants and is guaranteed by substantially all of our present and future subsidiaries, subject to customary exceptions. The Company was in compliance with all covenants as of September 30, 2026. Senior Notes The Company had $1.1 billion aggregate principal amount of 5.625% senior notes (“5.625% Notes”) outstanding as of September 30, 2026. The 5.625% Notes are due on August 15, 2029, and bear annual interest of 5.625% to be paid semiannually on February 15 and August 15 of each year. The 5.625% Notes are also subject to certain covenants and customary events of default, including cross-payment default and cross-acceleration provisions. The Company was in compliance with all covenants as of September 30, 2026.
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