v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Recurring Fair Value Measurements
The following information is presented for assets and liabilities that are recorded on the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that were recorded at fair value between the three-level fair value hierarchy during the periods reported.
In millions
Level 1(1)
Level 2(2)
Level 3(3)
Total
September 30, 2026
Assets:
Deferred compensation plan investments (4)
$1.0 $— $— $1.0 
Total assets$1.0 $— $— $1.0 
Liabilities:
Deferred compensation arrangement (4)
$12.9 $— $— $12.9 
Total liabilities$12.9 $— $— $12.9 
In millions
Level 1(1)
Level 2(2)
Level 3(3)
Total
December 31, 2025
Assets:
Deferred compensation plan investments (4)
$3.9 $— $— $3.9 
Total assets$3.9 $— $— $3.9 
Liabilities:
Deferred compensation arrangement (4)
$15.9 $— $— $15.9 
Total liabilities$15.9 $— $— $15.9 
_______________
(1) Quoted prices in active markets for identical assets.
(2) Quoted prices for similar assets and liabilities in active markets.
(3) Significant unobservable inputs.
(4) Consists of a deferred compensation arrangement through which we hold various investment securities recognized on our condensed consolidated balance sheets. Both the asset and liability related to investment securities are recorded at fair value and are included within "Other assets" and "Other liabilities" on the condensed consolidated balance sheets, respectively. In addition to the investment securities, we also had company-owned life insurance related to the deferred compensation arrangement recorded at cash surrender value in "Other assets" of $18.7 million and $18.2 million at September 30, 2026 and December 31, 2025, respectively.

Nonrecurring Fair Value Measurements
During the second quarter of 2026, a triggering event occurred within our Advanced Polymer Technologies asset group, requiring the measurement of our Advanced Polymer Technologies long-lived assets at fair value in connection with impairment testing. These measurements are Level 3 and were determined using both market and income approaches, and a discounted value of estimated future cash flows for our long-lived assets. Refer to Note 6 and Note 7 for more information, including key assumptions.
During the year ended December 31, 2025, we measured our Advanced Polymer Technologies reporting units' goodwill and our Pavement Technologies road markings long-lived assets at fair value in connection with impairment testing. These measurements are Level 3 and were determined using both the income approach and market approach for goodwill and both quoted market prices in active markets and a discounted value of estimated future cash flows for our long-lived assets. For additional information refer to the Notes to the Consolidated Financial Statements included in the company’s Form 10-K for the year ended December 31, 2025, filed on February 26, 2026.
Strategic Investments
Equity Method Investments
The aggregate carrying value of all strategic equity method investments totaled $3.3 million and $3.1 million at September 30, 2026 and December 31, 2025, respectively. There were no adjustments to the carrying value of equity method investments for impairment for the three and nine months ended September 30, 2026.
As of September 30, 2026, we had approximately $2.9 million of unfunded commitments associated with a venture capital fund investment accounted for under the equity method of accounting.
Measurement Alternative Investments
The aggregate carrying value of all measurement alternative investments where fair value is not readily determinable totaled $80.0 million at September 30, 2026 and December 31, 2025.
There were no adjustments to the carrying value of the measurement alternative method investments for impairment or observable price changes for the three and nine months ended September 30, 2026.
Restricted Investment
Our restricted investment is a trust managed in order to secure repayment of the finance lease obligation associated with the Performance Materials' Wickliffe, Kentucky manufacturing plant at maturity. The trust, which is presented as Restricted investment on our condensed consolidated balance sheets, originally held long-term bonds that matured during 2026. The investments held by the trust earned interest at the stated coupon rates of the underlying bonds, and interest earned on those investments was recognized and presented as interest income on our condensed consolidated statements of operations. Following the maturity of the bonds, the proceeds are held in highly liquid securities and are treated as restricted cash. The principal received upon maturity of the bonds, together with previously reinvested interest income, is expected to be equal to or greater than the $80.0 million finance lease obligation due in January 2027.
At September 30, 2026 and December 31, 2025, the carrying value of our restricted investment was $86.6 million and $84.4 million, net of an allowance for credit losses of zero and $0.2 million, and included restricted cash of $86.6 million and $34.0 million, respectively. The fair value at September 30, 2026 and December 31, 2025 was $86.6 million and $84.0 million, respectively, based on Level 1 inputs. As a result of the obligation being due in January 2027, we have reclassified the full amount of the restricted investment to "Current assets" on the condensed consolidated balance sheet at September 30, 2026.
The following table shows the total amortized cost of our HTM debt securities by credit rating, excluding the allowance for credit losses and cash. The primary factor in our expected credit loss calculation is the composite bond rating. As the rating decreases, the risk present in holding the bond is inherently increased, leading to an increase in expected credit losses.
HTM Debt Securities
In millionsAA+AA-AA-BBB+Total
September 30, 2026$— — — — — $— 
December 31, 2025$13.2 10.5 13.1 3.8 10.0 $50.6 
Debt and Finance Lease Obligations
In millionsSeptember 30, 2026December 31, 2025
Variable interest rate debt (1)
$500.0 $362.8 
Fixed rate debt (2)
550.0 750.0 
Finance lease obligations (3)
97.8 98.8 
Total debt including finance lease obligations$1,147.8 $1,211.6 
_______________
(1) For both periods presented, the carrying value of our variable interest rate debt, including the impact of a $200.0 million floating-to-fixed interest rate swap at December 31, 2025, and excluding debt issuance fees is considered a reasonable estimate of the fair value.
(2) At December 31, 2025, the carrying value of our fixed interest rate debt included the impact of a $200.0 million floating-to-fixed interest rate swap. The interest rate swap matured in August 2026 and, accordingly, was no longer outstanding at September 30, 2026. As of September 30, 2026 and December 31, 2025, the fair value of our fixed rate debt was $523.4 million and $735.7 million, respectively, based on Level 2 inputs.
(3) At September 30, 2026 and December 31, 2025, the fair value of our $80.0 million finance lease obligation associated with our Performance Materials' Wickliffe, Kentucky manufacturing site was $80.7 million and $81.4 million, respectively, based on Level 2 inputs. The fair value of all other finance lease obligations approximates their carrying values.