Derivative Instruments

9 Months Ended

Sep. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The Company enters into derivative instrument agreements, including forward foreign currency exchange contracts, interest rate swaps, and cross currency swaps to manage risk in connection with changes in foreign currency and interest rates. The Company hedges committed exposures and does not engage in speculative transactions. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit.

As of September 30, 2025, the aggregate notional amounts of the Company's outstanding interest rate contracts, cross currency swap contracts, EUR forward contract, and net investment hedge were $371.3 million, $389.2 million, $321.7 million, and $557.2 million, respectively.

In May 2025, the Company entered into a cross-currency swap expiring in May 2032 to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe, which qualifies as net investment hedge. For the derivative instrument, the gain or loss on the derivative instrument attributable to changes in the spot rate is reported in the CTA section of OCI and will remain in OCI until the hedged net investment is sold or liquidated. The Company has elected to assess hedge effectiveness based on changes in spot exchange rates. Under this method, the Company recognizes in earnings the initial value of the component excluded from the assessment of effectiveness over the life of the hedging instrument. The interest accruals are also recognized in earnings (interest expense). Any difference between the change in fair value of the excluded component and amounts recognized in earnings will be recognized in the CTA section of OCI.

The effects of cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended September 30, were as follows:


	2025						2024
(in thousands)	Cost of sales		Interest income, net and other finance costs		Other & foreign exchange loss, net		Cost of sales		Interest income, net and other finance costs		Other & foreign exchange loss, net
Total amounts of income and expense line items presented in the Condensed Consolidated Statement of Earnings in which the effects of fair value or cash flow hedges are recorded	$	957,711	$	4,315	$	151	$	916,551	$	4,111	$	352
The effects of cash flow hedging
Gain or (loss) on cash flow hedging relationships
Interest contracts:
Amount of gain or (loss) reclassified from OCI to earnings	—		5,868		—		—		9,303		—
Cross currency swap contract
Amount of gain or (loss) reclassified from OCI to earnings	—		1,929		(49,869)		—		3,433		(4,900)
Forward contract
Amount of gain reclassified from OCI to earnings	—		—		—		(188)		—		—

The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended September 30, 2025 and 2024 were as follows:


Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI				Location of Gain (Loss) Reclassified from OCI into Earnings	Gain (Loss) Reclassified from OCI into Earnings
(in thousands)	2025		2024			2025		2024
Interest rate contracts	$	364	$	(7,000)	Interest expense	$	1,952	$	3,067
Cross currency contracts	4,211		(13,285)		Interest expense	390		898
Forward contracts	—		—		FX gain (loss)	11		(19,134)

Total	$	4,575	$	(20,285)		$	2,353	$	(15,169)

The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended September 30, 2025 and 2024 were as follows:


Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI				Location of Loss Reclassified from OCI into Earnings	Gain (Loss) Reclassified from OCI into Earnings
(in thousands)	2025		2024			2025		2024
Interest rate contracts	$	(1,759)	$	2,173	Interest expense	$	5,868	$	9,303
Cross currency contracts	(45,007)		3,048		Interest expense	1,929		3,433
Forward contracts	—		—		FX loss	(49,869)		(4,900)
					Cost of goods sold	—		(188)
Total	$	(46,766)	$	5,221		$	(42,072)	$	7,648

For the three months ending September 30, 2025 and 2024, net investment hedge gain of $7.8 million and loss of $8.8 million were included in OCI, respectively. For the three months ending September 30, 2025 and 2024, excluded loss of $1.3 million and gain of $1.3 million were reclassified from OCI to interest expense, respectively.

For the nine months ending September 30, 2025 and 2024, loss on the net investment hedge of $41.8 million and gain on the net investment hedge of $1.0 million were included in OCI, respectively. For the nine months ending September 30, 2025 and 2024, excluded loss of $3.8 million and gain of $3.8 million were reclassified from OCI to interest expense, respectively.

As of September 30, 2025, the aggregate fair values of the Company’s derivative instruments on the Condensed Consolidated Balance Sheet were comprised of an asset of $15.2 million, of which $13.9 million is included in other current assets, and the balance of $1.4 million as other non-current assets, and of a non-current liability of $87.5 million included in the “Other long-term liabilities” of the condensed consolidated balance sheets.