v3.25.4
Financial Instruments and Fair Value Measurement
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurement

Note 19. Financial Instruments and Fair Value Measurement

Due to their short-term maturity, the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and other, approximates their fair value.

The estimated fair values of the Company’s outstanding debt under the fair value hierarchy as of December 31, 2025 and December 31, 2024 were as follows:

 

 

Fair value measurements as of

 

 

 

 

 

December 31, 2025 using:

 

 

Description

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Revolving credit facilities

 

$

—

 

 

$

295,683

 

 

$

—

 

 

$

295,683

 

Senior notes

 

 

—

 

 

 

868,137

 

 

 

—

 

 

 

868,137

 

 

 

$

—

 

 

$

1,163,820

 

 

$

—

 

 

$

1,163,820

 

 

 

 

Fair value measurements as of

 

 

 

 

 

December 31, 2024 using:

 

 

Description

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Revolving credit facilities

 

$

—

 

 

$

169,169

 

 

$

—

 

 

$

169,169

 

Senior notes

 

 

—

 

 

 

1,186,921

 

 

 

—

 

 

 

1,186,921

 

 

 

$

—

 

 

$

1,356,090

 

 

$

—

 

 

$

1,356,090

 

The carrying value of the revolving credit facilities classified as Level 2 approximates the fair value as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities.

The fair value of the senior notes classified as Level 2 was determined using quoted prices in a dealer market, or using recent market transactions. The Company’s senior notes are not carried at fair value on the Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024. However, fair value disclosure is required. The carrying value of the Company’s senior notes, net of note issuance costs is $1,268,252 as of December 31, 2025 (December 31, 2024 – $1,266,018).

Credit Risk

The Company’s credit risk is primarily attributable to cash held in bank accounts and accounts receivable. The Company maintains cash balances in foreign financial institutions in excess of insured limits.

The Company limits its credit exposure on cash held in bank accounts by periodically investing cash in excess of short-term operating requirements and debt obligations in low risk government bonds, or similar debt instruments. The Company’s credit risk associated with its sales is managed through setting credit limits, the purchase of credit insurance and for certain customers a letter of credit is received prior to shipping the product. The Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit. Concentrations of credit risk on its sales are with customers and agents based primarily in Germany, China and the U.S.

The Company’s exposure to credit losses may increase if its customers’ production and other costs are adversely affected by inflation, interest rate levels and tariffs. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables if the cash flows of the Company’s customers are adversely impacted by inflation, interest rate levels and tariffs. As of December 31, 2025, the Company has not had significant credit losses.

As of December 31, 2025, the carrying amount of cash and cash equivalents of $186,805 and accounts receivable of $298,889 recorded in the Consolidated Balance Sheet, net of any allowances for losses, represents the Company’s maximum exposure to credit risk.