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Derivatives and Hedging
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging
The following table summarizes the fair value of our derivative instruments as well as the location of the asset and/or liability on the condensed consolidated balance sheets as of the periods presented below (in millions):
Balance Sheet LocationFair Value of
Asset Derivatives
June 30, 2026December 31, 2025
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contractsOther current assets$2.8 $0.4 
Derivatives not designated as hedging instruments:
Foreign currency forward contractsOther current assets3.2 0.3 
Total asset position$6.0 $0.7 
Balance Sheet LocationFair Value of
Liability Derivatives
June 30, 2026December 31, 2025
Derivatives designated as cash flow hedging instruments:
Foreign currency forward contractsAccounts payable and accrued expenses$0.2 $0.4 
Derivatives not designated as hedging instruments:
Foreign currency forward contractsAccounts payable and accrued expenses0.5 0.4 
Total liability position$0.7 $0.8 
Our derivative instruments are subject to a master netting agreement with each respective counterparty bank and are therefore net settled at their maturity date. Although we have the legal right of offset under the master netting agreements, we have elected not to present these contracts on a net settlement amount basis, and therefore present these contracts on a gross basis on the accompanying condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025. Gains and losses related to our derivative instruments are presented as an adjustment to reconcile net income to net cash provided by or used in operating activities in the condensed consolidated statements of cash flows.
Derivative Designated as Cash Flow Hedging Instruments
We only use derivative instruments, including foreign currency forward contracts and interest rate swaps, to manage market risks related to foreign currency exposure across our global operations and exposure to variable‑rate debt.
As of June 30, 2026, the notional amount of our foreign currency forward contracts designated as cash flow hedges was $73.6 million. As of December 31, 2025, there were no outstanding cash flow hedges. During the fourth quarter of 2025, we closed out our interest rate swaps in connection with an amendment to the 2023 Term Loan B. As of June 30, 2026, we did not have any outstanding interest rate swap agreements.
The following tables summarize the net effect of all cash flow hedges for each of our derivative contracts on the condensed consolidated financial statements for the periods presented (in millions):
Net Gain/(Loss) Recognized in Other Comprehensive Income
Three Months Ended June 30,Six Months Ended June 30,
Derivatives designated as cash flow hedging instruments2026202520262025
Foreign currency forward contracts$1.3 $(5.2)$1.6 $(7.8)
Interest rate swap contracts— (1.7)— (5.8)
Total$1.3 $(6.9)$1.6 $(13.6)
Net Gain/(Loss) Reclassified from Other Comprehensive Income into Earnings
Three Months Ended June 30,Six Months Ended June 30,
Derivatives designated as cash flow hedging instruments
Statement of Operations Location2026202520262025
Foreign currency forward contractsCost of sales$(0.5)$(1.5)$(1.0)$(0.6)
Interest rate swap contractsInterest expense— 1.0 — 2.2 
Total$(0.5)$(0.5)$(1.0)$1.6 
For the three months ended June 30, 2026 and 2025, $0.6 million and $1.5 million, respectively, of net gains related to the amortization of forward points were released from accumulated other comprehensive income and recognized in cost of sales. For the six months ended June 30, 2026 and 2025, $1.6 million and $0.7 million, respectively, of net gains related to the amortization of forward points were released from accumulated other comprehensive income and recognized in cost of sales.
Based on the current valuation of our foreign currency forward contracts, we expect to release net gains of $2.1 million related to our foreign currency forward contracts from accumulated other comprehensive income into earnings over the next 12 months.
Derivatives Not Designated as Hedging Instruments
As of June 30, 2026 and December 31, 2025, the notional amounts of our foreign currency forward contracts not designated as cash flow hedges were approximately $164.8 million and $88.4 million, respectively.
The following table summarizes the location of net gains and losses on foreign currency forward contracts recognized in the condensed consolidated statements of operations for the periods presented (in millions):
Location of Net Gain/(Loss) Recognized in Income on Derivative InstrumentsNet Gain/(Loss) Recognized in Income on 
Derivative Instruments
Derivatives not designated as hedging instrumentsThree Months Ended June 30,Six Months Ended June 30,
2026202520262025
Foreign currency forward contractsOther income (expense), net$2.9 $(17.3)$6.7 $(27.2)
During the three months ended June 30, 2026 and 2025, we recognized net foreign currency transaction losses of $2.5 million and gains of $13.4 million, respectively, in other income (expense), net. During the six months ended June 30, 2026 and 2025, we recognized net foreign currency transaction losses of $5.8 million and gains of $23.3 million, respectively, in other income (expense), net.