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FAIR VALUE OF FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS
8. FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company’s financial instruments primarily consist of cash and cash equivalents, trade receivable, accounts payable, outstanding indebtedness, derivative instruments and benefit plan assets. The carrying value of the Company’s financial instruments approximates fair value due to the short-term nature of the instruments, except for outstanding indebtedness and derivative instruments as further discussed below.
The inputs used in the determination of fair values are categorized according to the fair value hierarchy as being Level 1, Level 2 or Level 3. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets or liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
Investments
The Company has investments in equity securities that are considered strategically and operationally important to its business. These investments are accounted for under the equity method where the Company has the ability to significantly influence the operations of the entity. At June 30, 2025 and December 31, 2024, equity method investments were $67.3 million and $58.1 million, respectively, and are included in other noncurrent assets in the condensed consolidated balance sheets. At June 30, 2025 and December 31, 2024, there were trade receivables of $4.4 million and $11.8 million, respectively, and trade payables of $4.9 million and $4.5 million, respectively, related to transactions with equity method investments.
Equity securities without a readily determinable fair value are recorded at cost less any impairment. At June 30, 2025 and December 31, 2024, the Company held $45.2 million and $44.8 million, respectively, of investments in equity securities without a readily determinable fair value. These amounts represent investments in entities where the Company does not have the ability to significantly influence the operations of the entity and are presented as other noncurrent assets in the condensed consolidated balance sheets.
The Company assessed the investments for indicators of impairment and concluded no such indicators exist.
Debt Instruments
The fair value of the Company’s debt instruments is measured using observable market information which would be considered Level 2 in the fair value hierarchy. The following table sets forth the carrying value and fair value amounts of the Company’s term loans:
June 30, 2025December 31, 2024
(in millions)
Carrying Value
Fair Value
Carrying Value
Fair Value
Term Loans(1)(2)
$3,992.7 $4,010.2 $3,786.7 $3,798.6 
(1) The carrying value of the term loans is presented on a gross basis and excludes unamortized debt discounts.
(2) The reported carrying values of other debt instruments approximate their fair values.
Derivative Instruments
The Company is exposed to cash flow interest rate risk on floating-rate debt under its Credit Agreement and periodically uses interest rate swaps, interest rate caps and interest rate collars to hedge this exposure. The Company is also exposed to fluctuations in foreign currency under its Credit Agreement as certain debt obligations are denominated in a currency other than an entity’s functional currency. The Company uses cross-currency swaps as a hedge of both the foreign currency and interest rate exposures. The interest rate derivative instruments and cross-currency swaps have expiration dates through February 2026 and February 2028, respectively, and are designated as hedges for accounting purposes.
The Company also uses cross-currency swaps to hedge foreign currency risk of its net investments in certain foreign subsidiaries. These cross-currency swaps have expiration dates through February 2026 and are designated as net investment hedges for accounting purposes.
The Company uses foreign exchange forward contracts to minimize the effect of fluctuating foreign-currency denominated accounts on its earnings, which are not designated as hedges for accounting purposes. As such, gains and losses from changes in fair value are recorded directly to earnings. For the three and six months ended June 30, 2024, the Company recognized a gain of $7.4 million and $16.2 million, respectively, in foreign currency exchange gain (loss), net on the Company’s foreign exchange contracts. In December 2024, the Company settled its outstanding foreign exchange contracts prior to the expiration of their contractual maturities. In April 2025, the Company entered into new foreign exchange forward contracts designated as cash flow hedges for accounting purposes, with the exception of its euro currency hedges, which were not fully designated as hedges for accounting purposes as of June 30, 2025. For the euro currency hedges, the Company recognized a loss of $4.7 million million in foreign currency exchange gain (loss), net for the three and six months ended June 30, 2025, respectively. The foreign exchange forward contracts have expiration dates through June 2026.
For derivatives designated as hedges for accounting purposes, the Company reports the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive (loss) income and reclassifies it into earnings in the same period or periods in which the hedged transaction affects earnings and within the same income statement line item as the impact of the hedged transaction.
The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist that could affect the value of its derivatives. Since the counterparties to derivative instruments have investment-grade credit ratings, the Company considers the counterparty risk to be remote.
In November 2023 and July 2024, the Company settled outstanding interest rate derivative contracts and outstanding cross-currency swaps prior to the expiration of their contractual maturities through March 2025 and February 2026, respectively. As these settled contracts were designated as hedges, the associated gains are a component of accumulated other comprehensive (loss) income and will be reclassified into earnings as the original hedged transaction affects earnings. The Company reclassified gains of $0.5 million and $8.5 million into earnings for the three months ended June 30, 2025 and 2024, respectively, and gains of $9.7 million and $17.0 million for the six months ended June 30, 2025 and 2024, respectively.
The following table sets forth the fair value amounts of derivatives presented in the condensed consolidated financial statements:
June 30, 2025December 31, 2024
(in millions)
Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
Derivatives designated as cash flow hedges
Interest rate contracts
$— $7.5 $0.3 $9.3 
Cross-currency swaps1.2 80.7 7.1 5.5 
Foreign exchange forward contracts
— 0.7 — — 
$1.2 $88.9 $7.4 $14.8 
Derivatives designated as net investment hedges
Cross-currency swaps$— $2.7 $3.8 $5.9 
Derivatives not designated as hedging instruments
Foreign exchange forward contracts
— 4.3 — — 
Total derivatives$1.2 $95.9 $11.2 $20.7 
As reported in the Condensed Consolidated Balance Sheets
Prepaid expenses and other current assets$1.1 $— $11.1 $— 
Other noncurrent assets0.1 — 0.1 — 
Other current liabilities— 59.7 — 6.6 
Other noncurrent liabilities— 36.2 — 14.1 
$1.2 $95.9 $11.2 $20.7 
The fair value of derivative instruments is measured using observable market information. These inputs would be considered Level 2 in the fair value hierarchy. While all of the Company's derivative instruments are subject to master netting arrangements with its counterparties, assets and liabilities related to these contracts are presented on a gross basis within the condensed consolidated financial statements.
The following tables present the gains (losses) on the Company’s interest rate contracts and cross-currency swaps:
(in millions)
Beginning Accumulated Other Comprehensive Gain (Loss)Amount of gains (losses) recognized, net of taxAmount of gains (losses) reclassified into income, net of taxEnding Accumulated Other Comprehensive Gain (Loss)
Three Months Ended June 30, 2025:
Designated as cash flow hedges:
Interest rate contracts
$(7.5)$— $(1.0)$(6.5)
Cross-currency swaps
(4.5)(43.7)(37.5)(10.7)
Foreign exchange forward contracts
— (0.7)— (0.7)
Designated as net investment hedges:
Cross-currency swaps
$4.1 $(6.6)$— $(2.5)
Three Months Ended June 30, 2024:
Designated as cash flow hedges:
Interest rate contracts
$31.7 $5.1 $10.5 $26.3 
Cross-currency swaps
1.1 7.0 8.4 (0.3)
Designated as net investment hedges:
Cross-currency swaps$7.4 $(3.3)$— $4.1 
(in millions)
Beginning Accumulated Other Comprehensive Gain (Loss)Amount of gains (losses) recognized, net of taxAmount of gains (losses) reclassified into income, net of taxEnding Accumulated Other Comprehensive Gain (Loss)
Six Months Ended June 30, 2025:
Designated as cash flow hedges:
Interest rate contracts
$0.8 $0.2 $7.5 $(6.5)
Cross-currency swaps
(3.9)(74.8)(68.0)(10.7)
Foreign exchange forward contract
— (0.7)— (0.7)
Designated as net investment hedges:
Cross-currency swaps
$(1.9)$(0.6)$— $(2.5)
Six Months Ended June 30, 2024:
Designated as cash flow hedges:
Interest rate contracts
$26.7 $20.7 $21.1 $26.3 
Cross-currency swaps
(2.3)16.6 14.6 (0.3)
Designated as net investment hedges:
Cross-currency swaps$— $4.1 $— $4.1