v3.26.3
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS 
U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value.

We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our unaudited condensed consolidated balance sheets, but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: 

Level 1Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We did not have any transfers between Level 1 and Level 2, or transfers in or out of Level 3, of the fair value hierarchy for the periods presented.

Our cross currency swap contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets and are classified as derivative instruments. We measure the fair value of our cross currency swap contracts using prevailing market conditions as of the close of business on each balance sheet date. The product of this calculation is then adjusted for counterparty risk.

Our foreign currency exchange contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets and are classified as derivative instruments. We measure the fair value of our foreign currency exchange contracts using an income approach, based on prevailing market forward exchange rates less the contract rate multiplied by the notional amount. The product of this calculation is then adjusted for counterparty risk.

Our interest rate swap contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets and are classified as derivative instruments. We measure the fair value of our interest rate swap contracts using current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk.

The amounts outstanding under our unsecured Credit Facility and our Senior Notes are measured at carrying value in our unaudited condensed consolidated balance sheets though we disclose the fair value of these financial instruments. We determine the fair value of the amount outstanding under our Credit Facility and Senior Notes using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. Our Credit Facility and Senior Notes are valued using Level 2 inputs. The estimated fair value of our Credit Facility approximates its carrying value. As of September 30, 2026, the estimated fair value and carrying value of our Senior Notes were $355.1 million and $375.0 million, respectively. As of December 31, 2025, the estimated fair value and carrying value of our Senior Notes were $444.8 million and $450.0 million, respectively.
The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy:
(in thousands)
As of September 30, 2026Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Balance as of September 30, 2026
Assets
Foreign currency exchange contracts (1)
$— $12,196 $— $12,196 
Cross currency swaps (1)
$— $4,675 $— $4,675 
Interest rate swap (2)
$— $6,652 $— $6,652 
Liabilities
Cross currency swaps (1)
$— $8,010 $— $8,010 
Foreign currency exchange contracts (1)
$— $1,420 $— $1,420 
Contingent consideration$— $— $20,200 $20,200 
(in thousands)
As of December 31, 2025Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Balance as of December 31, 2025
Assets
Cross currency swaps (1)
$— $1,700 $— $1,700 
Foreign currency exchange contracts (1)
$— $2,793 $— $2,793 
Liabilities
Cross currency swaps (1)
$— $13,270 $— $13,270 
Foreign currency exchange contracts (1)
$— $6,661 $— $6,661 
Interest rate swap (2)
$— $446 $— $446 
Contingent consideration$— $— $1,800 $1,800 

(1)Cross currency swaps and foreign currency exchange contracts are included within other current assets, other long-term assets, accrued liabilities, or other long-term liabilities depending on the gain (loss) position and anticipated settlement date.
(2)Interest rate swaps are included within other current assets or other long-term liabilities.

The estimated fair values of certain financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate their respective carrying values due to their short maturity.

Investment in Limited Partnership Fund

We hold an investment in a limited partnership fund (the “Fund”) that invests in growth and early-stage businesses engaged in pet product and service businesses. We believe that fair value best reflects the economics of the underlying transaction. We estimate the fair value of our investment in the Fund under the Net Asset Value (“NAV”) practical expedient based on the most recent NAV reported by the general partner, adjusted for subsequent contributions, distributions, and significant events. Investments measured using the NAV practical expedient are not classified in the fair value hierarchy. The fair value of the investment was $4.0 million at September 30, 2026, compared to $1.8 million at December 31, 2025.

We recognize changes in the fair value of our investment in net income as non-operating gains (losses) on equity investment because the investment is not a core business activity. We realize proceeds from the Fund’s distributions when its underlying investments are sold, with liquidation of the Fund’s assets expected over a period of time of up to approximately 13 years from inception in 2024. We cannot redeem our interests until the Fund’s dissolution, our interest is non-transferable without general partner consent, and no public market exists.
During the three months ended September 30, 2026, we received proceeds distributed by the Fund of $4.1 million. Our unfunded commitment was approximately $2.6 million at September 30, 2026.

Contingent Consideration

We have classified our liabilities for contingent consideration related to acquisitions within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which relates to the achievements of future revenue. The contingent consideration is included within other long-term liabilities.

We record changes in the estimated fair value of contingent consideration at each reporting date in the consolidated statements of income within general and administrative expense. Changes in contingent consideration liabilities are measured at fair value on a recurring basis using unobservable inputs (Level 3).
During the third quarter of 2026, we acquired CoVet. We estimate that the acquisition-date fair value of contingent consideration was $20.2 million, which we determined using a probability-weighted expected cash flow analysis of future revenue. The undiscounted amount that could be paid ranges from zero to a maximum of $47.5 million, based on annual revenue targets achieved during the years ended December 31, 2027, 2028, and 2029.