Derivatives |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives | DERIVATIVES Deal-Contingent Foreign Currency Forward
In December 2023, the Company entered into the Deal-Contingent Forward to manage the risk of appreciation of the GBP-
denominated purchase price of the acquisition of Castel. The Deal-Contingent Forward had a 200.0 million GBP notional
amount and was executed when the Castel acquisition closed on May 1, 2024. As the Deal-Contingent Forward was an
economic hedge and had not been designated as an accounting hedge, losses resulting from the Deal-Contingent Forward
were recognized through earnings in the periods incurred.
Interest Rate Cap
In April 2022, the Company entered into an interest rate cap agreement to manage its exposure to interest rate fluctuations
related to the Company’s Term Loan in the amount of $25.5 million. The interest rate cap had a $1,000.0 million notional
amount, 2.75% strike, and terminated on December 31, 2025. At inception, the Company formally designated the interest
rate cap as a cash flow hedge, which remained effective through the instrument’s termination date.
For the years ended December 31, 2025, 2024, and 2023, decreases of $13.9 million, $15.7 million, and $16.2 million,
respectively, in the fair value of the interest rate cap were recognized in OCI. See Note 17, Income Taxes, for further
information on the tax effects on OCI related to the interest rate cap.
The location and gains (losses) on derivatives were recognized on the Consolidated Statements of Income as follows:
The location and fair value of derivatives designated as hedging instruments were recognized on the Consolidated Balance
Sheets as follows:
See Note 14, Fair Value Measurements, for further information on the fair value of derivatives.
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