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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
8.
Fair Value Measurements

The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at September 30, 2025 and December 31, 2024:

 

 

 

September 30, 2025

 

 

December 31, 2024

 

 

Input

 

Carrying

 

 

Fair

 

 

Carrying

 

 

Fair

 

 

Level

 

Amount

 

 

Value

 

 

Amount

 

 

Value

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

Level 1

 

$

94.9

 

 

$

94.9

 

 

$

793.3

 

 

$

793.3

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

3.15% Senior notes due August 1, 2027

Level 2

 

 

424.9

 

 

 

419.4

 

 

 

424.9

 

 

 

411.1

 

2.3% Senior notes due December 15, 2031

Level 2

 

 

399.5

 

 

 

355.2

 

 

 

399.4

 

 

 

338.9

 

5.6% Senior notes due November 15, 2032

Level 2

 

 

499.3

 

 

 

532.1

 

 

 

499.2

 

 

 

515.3

 

3.95% Senior notes due August 1, 2047

Level 2

 

 

397.9

 

 

 

321.3

 

 

 

397.8

 

 

 

307.7

 

5.00% Senior notes due June 15, 2052

Level 2

 

 

499.9

 

 

 

465.6

 

 

 

499.9

 

 

 

451.9

 

Touchland business acquisition liability

Level 3

 

 

147.0

 

 

 

147.0

 

 

0.0

 

 

0.0

 

The Company recognizes transfers between input levels as of the actual date of the event. There were no transfers between input levels during the nine months ended September 30, 2025 and 2024.

Refer to Note 2 in the Form 10-K for a description of the methods and assumptions used to estimate the fair value of each class of financial instruments reflected in the condensed consolidated balance sheets.

Touchland business acquisition liability: The Touchland business acquisition liability is contingent upon the achievement of certain 2025 net sales thresholds, and may require a cash payment up to a maximum of $180.0. The fair value of the Touchland business acquisition liability is evaluated on a quarterly basis and is based on management estimates and entity-specific assumptions which are considered Level 3 inputs. The initial fair value of the Touchland business acquisition liability was $140.0. That amount was established based on initial net sales projections. Since the initial fair value was established, the Company has recorded an adjustment to increase the fair value of the business acquisition liability to $147.0 in the third quarter of 2025, based on the revised valuation due to an updated net sales forecast and the passage of time. The increase in fair value was recorded in SG&A expense within the Consumer Domestic segment. See Note 16 for further details.

The fair value measurement of the business acquisition liabilities is determined using a Monte Carlo simulation incorporating a distribution of expected revenue outcomes. The fair value measurement represents Level 3 measurements as they are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the fair value of the business acquisition liability. Changes in the fair value of the business acquisition liability are recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations.

The carrying amounts of Accounts Receivable, Accounts Payable, and Accrued Expenses and Other Liabilities, approximated estimated fair values as of September 30, 2025 and December 31, 2024.