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Derivative Instruments | 3 Months Ended
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Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments We are exposed to various market risks, including foreign currency exchange rate risk and interest rate risk. We use derivative instruments to manage these risk exposures. We enter into foreign currency contracts and cross-currency swaps to help manage our exposure to foreign currency exchange rate risk and we use interest rate swaps to mitigate interest rate risk. We assess the fair value of these instruments by considering current and anticipated movements in future interest rates and the relevant currency spot and future rates available in the market. Accordingly, these instruments are classified within Level 2 of the fair value hierarchy. Cash flow hedges We have interest rate swap arrangements with counterparties to reduce our exposure to variability in cash flows related to interest payments on our outstanding term loans. These swaps are designated as cash flow hedges of the risk associated with floating interest rates on designated future monthly interest payments. We determine the fair value of our interest rate swaps by comparing the present value of the remaining fixed payments to the present value of the remaining floating payments, using discount factors based on interest rate yield curves. As of March 31, 2026, we have outstanding interest rate swaps with an aggregate notional value of $1,754.0. This amount includes five swap arrangements currently in effect and two forward-starting swaps that are scheduled to commence on the October 2026 maturity date of the May 2023 swaps, as further summarized in the table below:
Type |  | Notional Value |  | Effective Date |  | Maturity Date
Swaps entered May 2023 |  | $736.3 |  | May 2023 |  | October 2026
Swaps entered June 2025 |  | 402.7 |  | June 2025 |  | January 2031
Swap entered December 2025 |  | 115.0 |  | December 2025 |  | January 2031
Forward-starting swaps entered August 2025 |  | 500.0 |  | October 2026 |  | January 2030
Total |  | $1,754.0 |  |  |  |
Changes in fair value are recorded in Accumulated other comprehensive loss (“AOCL”) in the Condensed Consolidated Balance Sheets, with a corresponding adjustment to the derivative asset or liability. Amounts recorded in AOCL are reclassified to Interest expense, net in the same period during which the hedged transactions affect earnings. As of March 31, 2026, we estimate that approximately $4.4 of pre-tax gain related to interest rate swaps recorded in AOCL will be reclassified into earnings within the next 12 months. For additional information on changes recorded in AOCL, see Note 6 - Shareholders' Equity. Fair value hedges In June and December 2025, we entered into three cross-currency swaps with a combined notional value of €448.0, maturing in January 2031, to mitigate foreign currency exposure related to intercompany loans and economically reduce interest expense. We have designated these swaps as fair value hedges. We elected to assess the effectiveness of these hedges based on changes in spot rates. We determine the fair value of our cross-currency swaps by comparing the present value of the remaining cash flows in the non-valuation currency (converted using the month-end spot rate) to the present value of the remaining cash flows in the valuation currency. Changes in fair value are recognized as foreign exchange gains or losses within Other operating expense (income), net, and are intended to offset the foreign exchange gains or losses arising from the remeasurement of the hedged intercompany loans. Unrealized gains or losses on components excluded from the hedge effectiveness assessment are recorded in AOCL and are reclassified into earnings over the life of the swaps. For additional information on changes recorded in AOCL, see Note 6 - Shareholders' Equity. Net investment hedge In July 2023, we entered into a €100.0 cross-currency swap maturing in November 2026 to mitigate foreign currency exposure related to our net investment in various euro-functional-currency consolidated subsidiaries. We have designated this swap as a net investment hedge. We elected to assess the effectiveness of this net investment hedge based on changes in spot rates and we amortize the portion of the hedge excluded from the effectiveness assessment to Interest expense, net over the life of the swap. Changes in fair value related to the effective portion of the hedge are recorded in AOCL as part of the foreign currency translation adjustment, with a corresponding adjustment to the derivative asset or liability. Any accumulated gain or loss will be reclassified into earnings when the hedged net investment is either sold or substantially liquidated. For additional information on changes recorded in AOCL, see Note 6 - Shareholders' Equity. Derivatives not designated as accounting hedges We periodically enter into foreign currency forward contracts, generally with maturities of 180 days or less, to reduce our exposure to foreign exchange rate risks. These contracts are not designated as accounting hedges. As of March 31, 2026 and December 31, 2025, the notional amount of our outstanding foreign currency forward contracts was $146.4 and $162.1, respectively. We initially recognize these contracts at fair value on the execution date and subsequently remeasure them at the end of each reporting period. We determine the fair value of these instruments by comparing the notional value of the trade using the current month-end exchange rate to the notional value of the trade using the trade date exchange rate. The gain or loss related to the change in fair value for these contracts is recognized within Other operating expense (income), net. We recognized a loss (gain) from the fair value adjustment of $3.5 and $(2.3) for the three months ended March 31, 2026 and 2025, respectively. The following table provides the location and the fair value of our derivative instruments in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025:
| Balance Sheet Location |  | March 31, 2026 |  | December 31, 2025
Cash flow hedging relationships |  |  |  |  |
Interest rate swaps | Other current assets |  | $3.2 |  | $3.2
Interest rate swaps | Other non-current assets |  | 4.8 |  | 1.8
Interest rate swaps | Other non-current liabilities |  | 1.0 |  | 3.6
Fair value hedging relationships |  |  |  |  |
Cross-currency swaps | Other non-current assets |  | 9.3 |  | –
Cross-currency swaps | Other non-current liabilities |  | – |  | 5.8
Net investment hedge |  |  |  |  |
Cross-currency swap | Accrued expenses and other current liabilities |  | 5.1 |  | 8.0
Not designated as accounting hedges |  |  |  |  |
Foreign currency forwards | Other current assets |  | – |  | 1.2
Foreign currency forwards | Accrued expenses and other current liabilities |  | 2.4 |  | 0.1
Total derivative assets |  |  | $17.3 |  | $6.2
Total derivative liabilities |  |  | $8.5 |  | $17.5

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