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Financial Instruments and Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block] Financial Instruments and Derivative Financial Instruments
Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements and long-term debt, excluding finance leases, were determined using current rates offered for similar obligations taking into account company credit risk. This valuation methodology is Level 2 as defined in the fair value hierarchy. At June 30, 2025, the carrying value and fair value of revolving credit agreements and long-term debt, excluding finance leases, was $450.2 million and $448.3 million, respectively. At December 31, 2024, the carrying value and fair value of revolving credit agreements and long-term debt, excluding finance leases, was $417.3 million and $416.8 million, respectively.

Derivative Financial Instruments

The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales.

The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in cost of sales.

The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and the associated variable rate financings are predominately based upon the one-month Secured Overnight Financing Rate. Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense.

Cash flows from hedging activities are reported in the unaudited condensed consolidated statements of cash flows with the same classification as the hedged item, generally as a component of cash flows from operations.

The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation.

The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges.

Foreign Currency Derivatives: The Company held forward foreign currency exchange contracts with total notional amounts of $0.7 billion and 0.8 billion at June 30, 2025 and December 31, 2024, respectively, primarily denominated in euros, U.S. dollars, Japanese yen, Chinese renminbi, Mexican pesos, British pounds, Swedish kroner and Australian dollars. The fair value of these contracts approximated a net asset of $11.1 million and a net liability of $18.5 million at June 30, 2025 and December 31, 2024, respectively.

At June 30, 2025 and December 31, 2024, there was no material ineffectiveness of forward foreign currency exchange contracts that qualify for hedge accounting. Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 36 months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI. Based on market valuations at June 30, 2025, $7.1 million of the amount of net deferred loss included in OCI at June 30, 2025 is expected to be reclassified as income into the unaudited condensed consolidated statements of operations over the next twelve months, as the transactions occur.
Interest Rate Derivatives: The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at June 30, 2025 and December 31, 2024:
Notional AmountAverage Fixed Rate
JUNE 30,DECEMBER 31JUNE 30,DECEMBER 31
2025202420252024
Term at June 30, 2025
$180.0 $180.0 1.65 %1.65 %Extending to May 2027
$10.7 $12.0 2.13 %1.93 %Extending to July 2029

The fair value of all interest rate swap agreements was a net asset of $6.1 million and $9.9 million at June 30, 2025 and December 31, 2024, respectively. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI. Based on market valuations at June 30, 2025, $4.4 million of the amount included in OCI as net deferred gain is expected to be reclassified as income in the unaudited condensed consolidated statements of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.

The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets:
 Asset DerivativesLiability Derivatives
 Balance Sheet Location
JUNE 30, 2025
DECEMBER 31, 2024
Balance Sheet LocationJUNE 30, 2025DECEMBER 31, 2024
Derivatives designated as hedging instruments     
Cash Flow Hedges
Interest rate swap agreements     
CurrentPrepaid expenses and other$3.9 $4.3 Prepaid expenses and other$— $— 
Long-termOther non-current assets2.2 5.6 Other non-current assets— — 
Foreign currency exchange contracts    
CurrentPrepaid expenses and other16.0 1.4 Prepaid expenses and other6.7 0.5 
Other current liabilities0.1 3.4 Other current liabilities1.8 17.1 
Long-termOther non-current assets3.4 — Other non-current assets1.6 — 
Other long-term liabilities0.1 0.8 Other long-term liabilities0.2 5.6 
Total derivatives designated as hedging instruments$25.7 $15.5 $10.3 $23.2 
Derivatives not designated as hedging instruments     
Cash Flow Hedges
Foreign currency exchange contracts    
CurrentPrepaid expenses and other5.5 0.8 Prepaid expenses and other3.2 1.2 
Other current liabilities— 2.3 Other current liabilities0.5 2.8 
Total derivatives not designated as hedging instruments$5.5 $3.1  $3.7 $4.0 
Total derivatives$31.2 $18.6  $14.0 $27.2 
The following table summarizes the offsetting of the fair value of derivative instruments on a gross basis by counterparty as recorded in the unaudited condensed consolidated balance sheets:
Derivative Assets as of June 30, 2025
Derivative Liabilities as of June 30, 2025
Gross Amounts of Recognized AssetsGross Amounts OffsetNet Amounts PresentedNet AmountGross Amounts of Recognized LiabilitiesGross Amounts OffsetNet Amounts PresentedNet Amount
Cash Flow Hedges
Interest rate swap agreements$6.1 $— $6.1 $6.1 $— $— $— $— 
Foreign currency exchange contracts13.4 (2.3)11.1 11.1 2.3 (2.3)— — 
Total derivatives$19.5 $(2.3)$17.2 $17.2 $2.3 $(2.3)$— $— 
Derivative Assets as of December 31, 2024
Derivative Liabilities as of December 31, 2024
Gross Amounts of Recognized AssetsGross Amounts OffsetNet Amounts PresentedNet AmountGross Amounts of Recognized LiabilitiesGross Amounts OffsetNet Amounts PresentedNet Amount
Cash Flow Hedges
Interest rate swap agreements$9.9 $— $9.9 $9.9 $— $— $— $— 
Foreign currency exchange contracts0.5 (0.5)— — 19.0 (0.5)18.5 18.5 
Total derivatives$10.4 $(0.5)$9.9 $9.9 $19.0 $(0.5)$18.5 $18.5 

The following table summarizes the pre-tax impact of derivative instruments as recorded in the unaudited condensed consolidated statements of operations:
 Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)
 THREE MONTHS ENDEDSIX MONTHS ENDED THREE MONTHS ENDEDSIX MONTHS ENDED
JUNE 30,JUNE 30,
Derivatives Designated as Hedging Instruments2025202420252024 2025202420252024
Cash Flow Hedges
Interest rate swap agreements$(0.3)$1.1 $(1.3)$4.5 Interest expense$1.4 $1.7 $2.7 $3.6 
Foreign currency exchange contracts12.7 (12.4)24.2 (31.0)Cost of sales(1.1)(9.7)(6.6)(18.9)
Total$12.4 $(11.3)$22.9 $(26.5) $0.3 $(8.0)$(3.9)$(15.3)
Derivatives Not Designated as Hedging InstrumentsLocation of Gain or (Loss) Recognized in Income on Derivative2025202420252024
Cash Flow Hedges
Foreign currency exchange contractsCost of sales$5.8 $(2.0)$6.9 $(5.3)
Total$5.8 $(2.0)$6.9 $(5.3)