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Accounts Receivable Factoring Agreements
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
Accounts Receivable Factoring Agreements Accounts Receivable Securitization Programs
U.S. Accounts Receivable Securitization Program
A group of our U.S. operating subsidiaries maintain an accounts receivable securitization program under which they sell eligible U.S. accounts receivable to a wholly owned subsidiary that was formed for the sole purpose of participating in these arrangements. The wholly owned subsidiary may, in turn, sell ownership interests in these receivables to two banks and issuers of commercial paper administered by these banks.
Historically, transfers of fractional ownership interests in receivables under the U.S. receivables securitization program to the two banks and issuers of commercial paper administered by these banks did not meet the criteria for sale accounting and were accounted for as secured borrowings, with the underlying receivables pledged as collateral. Accordingly, amounts funded under these arrangements were classified as Short-term borrowings on our Consolidated Balance Sheets, and the related net trade receivables were reclassified from Trade receivables, net to Prepaid expenses and other current assets. The banks and commercial paper conduits did not have recourse to the general credit of the Company. There were $50.0 million of borrowings outstanding, or corresponding net trade receivables maintained as collateral, under the secured borrowing arrangements as of December 31, 2024. This program was terminated in December 2025.
In December 2025, we entered into a new accounts receivable securitization agreement that qualifies for off-balance sheet treatment. Under the new agreement, certain of the receivables are sold through our wholly owned, bankruptcy-remote, special purpose entity (“SPE”) to a third-party financial institution on a recurring basis in exchange for cash equal to the gross receivables transferred. The transfer of receivables under this new agreement meet the sale criteria under ASC 860, Transfers and Servicing, based on the legal isolation of the transferred financial assets, and the transferred receivables are derecognized from our Consolidated Balance Sheets. Under this arrangement, we do not recognize the proceeds received as borrowings. Cash activity related to the facility are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows.
The future outstanding balance of trade receivables that will be sold is expected to vary based on the level of activity and other factors. The receivables sold are fully guaranteed by the SPE that also pledges further accounts receivable as collateral under this agreement. The Company controls and therefore consolidates the SPE in its Consolidated Financial Statements.
The Company derecognized accounts receivable of $50.0 million for the year ended December 31, 2025 under the current accounts receivable securitization agreement. The Company collected $1.3 million of accounts receivable sold under this agreement during the year ended December 31, 2025 which is classified as restricted cash and included in Prepaid expenses and other current assets with the corresponding liability included in Other current liabilities on the Consolidated Balance Sheets. Unsold accounts receivable of $140.4 million were pledged by the SPE as collateral to the financial institution as of December 31, 2025.
As of December 31, 2025, the maximum purchase limit for receivable interests was $105.0 million, subject to the availability limits described below.
The amounts available from time to time under this program may be less than $105.0 million due to a number of factors, including but not limited to our credit ratings, trade receivable balances, the creditworthiness of our customers and our receivables collection experience. As of December 31, 2025, the amount available to us under the program before utilization was $105.0 million. Although we do not believe restrictions under this program presently materially restrict our operations, if an event occurs that triggers one of these restrictive provisions, we could experience a decline in the amounts available to us under the program or termination of the program.
The program expires annually and is renewable.
European Accounts Receivable Securitization Program
We and a group of our European subsidiaries maintain an accounts receivable securitization program with a special purpose vehicle (“SPV”), two banks, and issuers of commercial paper administered by these banks. The European program is structured to be a securitization of certain trade receivables that are originated by certain of our European subsidiaries. The SPV borrows funds from the banks to fund its acquisition of the receivables and provides the banks with a first priority perfected security interest in the accounts receivable. We do not have an equity interest in the SPV. We concluded the SPV is a variable interest entity because its total equity investment at risk is not sufficient to permit the SPV to finance its activities without additional subordinated financial support from the bank via loans or via the collections from accounts receivable already purchased. Additionally, we are considered the primary beneficiary of the SPV since we control the activities of the SPV and are exposed to the risk of uncollectible receivables held by the SPV. Therefore, the SPV is consolidated in our Consolidated Financial Statements. Any activity between the participating subsidiaries and the SPV is eliminated in consolidation. Loans from the banks to the SPV will be classified as Short-term borrowings on our Consolidated Balance Sheets. The net trade receivables that serve as collateral for these borrowings are reclassified from Trade receivables, net to Prepaid expenses and other current assets on the Consolidated Balance Sheets. There were €79.8 million ($93.7 million equivalent at December 31, 2025) and €79.7 million ($83.0 million equivalent at December 31, 2024) of borrowings with corresponding net trade receivables maintained as collateral as of December 31, 2025 and December 31, 2024, respectively.
As of December 31, 2025, the maximum purchase limit for receivable interests was €80.0 million ($94.0 million equivalent at December 31, 2025), subject to availability limits. The terms and provisions of this program are similar to our U.S. program discussed above. As of December 31, 2025, the amount available under this program before utilization was €80.0 million ($94.0 million equivalent at December 31, 2025).
This program expires annually and is renewable.
Utilization of Our Accounts Receivable Securitization Programs
As of December 31, 2025, there were $50.0 million and €79.8 million ($93.7 million equivalent at December 31, 2025) of utilization under our U.S. program and outstanding borrowings under our European program, respectively. As of December 31, 2024, there were $50.0 million and €79.7 million ($83.0 million equivalent at December 31, 2024) of outstanding borrowings under our U.S. and European programs, respectively. The total interest paid for these programs was $6.3 million, $7.3 million, and $6.3 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Under limited circumstances, the banks and the issuers of commercial paper can end purchases of receivables interests before the above expiration dates. A failure to comply with debt leverage or various other ratios related to our receivables collection
experience could result in termination of the receivables programs. We were in compliance with these ratios at December 31, 2025.
Accounts Receivable Factoring Agreements
The Company has entered into factoring agreements and customers' supply chain financing arrangements to sell certain trade receivables to unrelated third-party financial institutions. These programs are entered into in the normal course of business. We account for these transactions in accordance with ASC Topic 860. ASC Topic 860 allows for the ownership transfer of accounts receivable to qualify for true-sale treatment when the appropriate criteria is met, which permits the balances sold under the program to be excluded from Trade receivables, net on the Consolidated Balance Sheets and the proceeds are included in the cash flows from operating activities in the Consolidated Statements of Cash Flows. Receivables are considered sold when (i) they are transferred beyond the reach of the Company and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) the Company has no continuing involvement in the transferred receivables. In addition, the Company provides no other forms of continued financial support to the purchaser of the receivables once the receivables are sold.
Gross amounts factored under these programs for the years ended December 31, 2025, 2024, and 2023 were $628.7 million, $721.7 million, and $749.7 million, respectively. The fees associated with the transfer of receivables for all programs were $8.2 million, $11.3 million, and $12.3 million for the years ended December 31, 2025, 2024, and 2023, respectively.