XML 50 R13.htm IDEA: XBRL DOCUMENT
v3.25.2

Derivative Instruments | 6 Months Ended
--- | ---
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives Instruments |
7. Derivative Instruments
We generally use derivative instruments to manage our interest rate and foreign currency exchange risk. We currently have derivatives classified as cash flow hedges and net investment hedges. We do not enter into any derivatives for trading or speculative purposes. All of our derivative instruments are governed by International Swap Dealers Association, Inc. master agreements with our counterparties. As of June 30, 2025 and December 31, 2024, we have presented the fair value of our derivative instruments at the gross amounts in the condensed consolidated balance sheets as the gross fair values of our derivative instruments equaled their net fair values. Cash flow hedges We have entered into interest rate swap agreements, which effectively convert portions of our variable rate debt under the 2024 Credit Facilities to a fixed rate for the term of the swap agreements. We designated each of the interest rate swaps as cash flow hedges at the inception of the contracts. Our entry into the 2024 Credit Agreement in April 2024 did not affect our interest rate swap agreements, including their designation as cash flow hedges, as the 2024 Credit Agreement has substantially the same critical terms as the 2020 Credit Agreement. As of June 30, 2025 and December 31, 2024, the aggregate notional values of the interest rate swaps were $700.0 million. All of the contracts have maturities on or before October 2028. We have entered into foreign currency forward contracts to hedge revenues denominated in the Canadian Dollar ("CAD") against changes in the exchange rate with the United States Dollar ("USD"). We designated each of these foreign currency forward contracts as cash flow hedges at the inception of the contracts. As of June 30, 2025 and December 31, 2024, the aggregate notional values of the foreign currency forward contracts designated as cash flow hedges that we held to buy USD in exchange for Canadian Dollars were $35.7 million CAD and $32.8 million CAD, respectively. All of the contracts have maturities of 12 months or less. Net investment hedges We have entered into foreign currency forward contracts to hedge a portion of the foreign currency exposure that arises on translation of our investments denominated in British Pounds ("GBP") into USD. We designated each of these foreign currency forward contracts as net investment hedges at the inception of the contracts. As of June 30, 2025 and December 31, 2024, the aggregate notional values of the foreign currency forward contracts designated as net investment hedges to reduce the volatility of the U.S. dollar value of a portion of our GBP-denominated investments was £14.8 million and £12.9 million, respectively. The fair values of our derivative instruments were as follows as of:
|  | Asset derivatives |  |  | Liability derivatives
(dollars in thousands) | Balance sheet location | June 30, 2025 | December 31, 2024 |  | Balance sheet location | June 30, 2025 | December 31, 2024
Derivative instruments designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency forward contracts, current portion | Prepaid expenses and other current assets | $ | — |  | $ | 1,288 |  |  | Accrued expenses and other current liabilities | $ | 1,359 |  | $ | — |
Interest rate swaps, long-term | Other assets | 1,321 |  | 9,262 |  |  | Other liabilities | 2,497 |  | — |
Total derivative instruments designated as hedging instruments |  | $ | 1,321 |  | $ | 10,550 |  |  |  | $ | 3,856 |  | $ | — |
The effects of derivative instruments in cash flow and net investment hedging relationships were as follows:
| (Loss) gain recognized in accumulated other comprehensive loss as of | Location of (loss) gain reclassified from accumulated other comprehensive loss into income | Gain reclassified from accumulated other comprehensive loss into income
(dollars in thousands) | June 30, 2025 | Three months ended June 30, 2025 |  | Six months ended June 30, 2025
Cash Flow Hedges |  |  |  |  |
Interest rate swaps | $ | (1,176) |  | Interest expense | $ | 1,518 |  |  | $ | 2,437 |
Foreign currency forward contracts | $ | (541) |  | Revenue | $ | 138 |  |  | $ | 434 |
Net Investment Hedges |  |  |  |  |
Foreign currency forward contracts | $ | (818) |  |  | $ | — |  |  | $ | — |
| June 30, 2024 |  | Three months ended June 30, 2024 |  | Six months ended June 30, 2024
Cash Flow Hedges |  |  |  |  |
Interest rate swaps | $ | 14,282 |  | Interest expense | $ | 5,456 |  |  | $ | 10,929 |
Foreign currency forward contracts | $ | 252 |  | Revenue | $ | 129 |  |  | $ | 163 |
Net Investment Hedges |  |  |  |  |
Foreign currency forward contracts | $ | (56) |  |  | $ | — |  |  | $ | — |
Our policy requires that derivatives used for hedging purposes be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accumulated other comprehensive income (loss) includes unrealized gains or losses from the change in fair value measurement of our derivative instruments each reporting period and the related income tax expense or benefit. Excluding net investment hedges, changes in the fair value measurements of the derivative instruments and the related income tax expense or benefit are reflected as adjustments to accumulated other comprehensive income (loss) until the actual hedged expense is incurred or until the hedge is terminated at which point the unrealized gain (loss) and related tax effects are reclassified from accumulated other comprehensive income (loss) to current earnings. For net investment hedges, changes in the fair value measurements of the derivative instruments and the related income tax expense or benefit are reflected as adjustments to translation adjustment, a component of accumulated other comprehensive income (loss), and recognized in earnings only when the hedged GBP investment is liquidated. The estimated accumulated other comprehensive income as of June 30, 2025 that is expected to be reclassified into earnings within the next twelve months is $2.3 million. There were no ineffective portions of our interest rate swap or foreign currency forward derivatives during the six months ended June 30, 2025 and 2024. See Note 10 to these unaudited, condensed consolidated financial statements for a summary of the changes in accumulated other comprehensive income (loss) by component. We classify cash flows related to derivative instruments as operating activities in the condensed consolidated statements of cash flows.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativesAndFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration