Financial instruments

9 Months Ended

Sep. 28, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign currency forward contracts

We use derivative instruments for risk management purposes. Foreign currency forward contracts designated as cash flow hedges are used to manage foreign currency transaction exposure. Foreign currency forward contracts

not designated as hedges for accounting purposes are used to manage exposure related to near term foreign currency denominated monetary assets and liabilities. We typically enter into the non-designated foreign currency forward contracts for periods consistent with our currency translation exposures, which generally approximate one month. Concurrent with the execution of the agreement to acquire the VI Business as described in Note 4, in February 2025, we also entered into non-designated foreign currency forward contracts with an aggregate notional value of €700 million to hedge economically against the foreign currency exposure associated with the cash consideration required to complete the acquisition. Concurrent with the completion of the VI Business acquisition, on June 30, 2025, we settled these foreign currency forward contracts, which resulted in proceeds of $82.2 million. For the three and nine months ended September 28, 2025, we recognized gains of $0.7 million and $87.1 million, respectively, from non-designated foreign currency forward contracts within selling, general and administrative expenses. For the three and nine months ended September 29, 2024, we recognized a loss of $0.9 million and a gain of $2.6 million, respectively, from non-designated foreign currency forward contracts within selling, general and administrative expenses.

The total notional amount for all open foreign currency forward contracts designated as cash flow hedges as of September 28, 2025 and December 31, 2024 was $319.9 million and $270.9 million, respectively. The total notional amount for all open non-designated foreign currency forward contracts as of September 28, 2025 and December 31, 2024 was $282.7 million and $168.6 million, respectively. All open foreign currency forward contracts as of September 28, 2025 have durations of 12 months or less.

Cross-currency interest rate swaps

On August 18, 2025, we executed two separate cross-currency swap agreements set to mature on August 20, 2030 and August 20, 2032, respectively, to hedge against the effect of variability in the U.S. dollar to Swiss Franc (CHF) exchange rate, (the "2025 Cross-currency swap agreements"). Each of the 2025 Cross-currency swap agreements had a notional amount of $300 million and were designated as a net investment hedge. The 2025 Cross-currency swap agreements expiring in 2030 include six different financial institution counterparties and notionally exchanged $300 million for CHF 242.4 million at an annual interest rate of 3.15%. The 2025 Cross-currency swap agreements expiring in 2032 include four different financial institution counterparties and notionally exchanged $300 million for CHF 242.5 million at an annual interest rate of 3.02%.

On April 25, 2024, we executed two separate term cross-currency swap agreements set to mature on February 26, 2027 and February 28, 2029, respectively, to hedge against the effect of variability in the U.S. dollar to euro exchange rate (the "2024 Cross-currency swap agreements"). Each of the 2024 Cross-currency swap agreements had a notional principal amount of $250 million and was designated as a net investment hedge. The 2024 Cross-currency swap agreements expiring in 2027 include five different financial institution counterparties and notionally exchanged $250 million at an annual interest rate of 4.25% for €233.4 million at an annual interest rate of 2.44%. The 2024 Cross-currency swap agreements expiring in 2029 include four different financial institution counterparties and notionally exchanged $250 million at an annual interest rate of 4.25% for €233.4 million at an annual interest rate of 2.45%.

During 2023, we executed cross-currency swap agreements with six different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate, (the "2023 Cross-currency swap agreements"). Under the terms of the 2023 Cross-currency swap agreements, we have notionally exchanged $500 million at an annual interest rate of 4.63% for €474.7 million at an annual interest rate of 3.05%. Shortly after the execution of the 2023 Cross-currency swap agreements, we entered into a zero cost foreign exchange collar contract that aligns with the notional amount and expiration date of the 2023 Cross-currency swap agreements. We sold a put option with a lower strike price and bought a call option with a higher strike price to manage the foreign exchange risk related to the final settlement of the $500 million notional 2023 cross-currency swaps. Upon the execution of the zero cost foreign exchange collar contract, we have de-designated the 2023 Cross-currency swaps and re-designated the combined $500 million notional cross currency swaps and zero cost collar into a new hedging instrument. At redesignation, the existing $500 million notional 2023 cross-currency swaps were off-market due to changes in foreign exchange rates and interest rates. The off-market value due to interest rates will be amortized ratably into earnings through October 2025 and the off-market value due to foreign exchange rates will remain in accumulated other comprehensive income until the underlying net investment is sold. The combined 2023 cross-currency swaps and zero cost collar have been designated as a net investment hedge for accounting purposes. For

additional information regarding the 2023 Cross-currency swap agreements and the zero cost collar, see Note 15, Subsequent events.

The swap agreements described above require an exchange of the notional amounts upon expiration or earlier termination of the agreements. We and the counterparties have agreed to effect the exchange through a net settlement.

The cross-currency swaps are marked to market at each reporting date and any changes in fair value are recognized as a component of accumulated other comprehensive income (loss) ("AOCI"). The following table summarizes the foreign exchange gains and losses recognized within AOCI and the interest benefit recognized within interest expense related to cross currency swaps for the three and nine months ended September 28, 2025 and September 29, 2024:


	Three Months Ended				Nine Months Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Foreign exchange (loss) gain	$	(6,271)	$	(24,846)	$	(89,834)	$	(10,656)
Interest benefit	5,770		4,031		13,254		12,031

Balance sheet presentation

The following table presents the locations in the condensed consolidated balance sheet and fair value of derivative financial instruments as of September 28, 2025 and December 31, 2024:


	September 28, 2025		December 31, 2024
	Fair Value
Asset derivatives:
Designated foreign currency forward contracts	$	4,526	$	5,780
Non-designated foreign currency forward contracts	336		254
Cross-currency interest rate swaps	23,198		15,972
Prepaid expenses and other current assets	28,060		22,006
Cross-currency interest rate swaps	946		5,409
Other assets	946		5,409
Total asset derivatives	$	29,006	$	27,415
Liability derivatives:
Designated foreign currency forward contracts	$	4,549	$	3,078
Non-designated foreign currency forward contracts	580		931
Cross-currency interest rate swaps	53,393		9,575
Other current liabilities	58,522		13,584
Cross-currency interest rate swaps	69,791		—
Other liabilities	69,791		—
Total liability derivatives	$	128,313	$	13,584

See Note 11 for information on the location and amount of gains and losses attributable to derivatives that were reclassified from AOCI to expense (income), net of tax. There was no ineffectiveness related to our cash flow hedges during the three and nine months ended September 28, 2025 and September 29, 2024.

Trade receivables

The allowance for credit losses as of September 28, 2025 and December 31, 2024 was $8.5 million and $10.0 million, respectively. The current portion of the allowance for credit losses, which was $4.1 million and $6.1 million as of September 28, 2025 and December 31, 2024, respectively, was recognized as a reduction of accounts receivable, net.