Derivatives

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

The Company periodically enters into interest rate swaps to reduce its exposure to fluctuations in interest rates on variable-rate debt (cash flow hedges) and foreign exchange forward contracts to reduce its exposure to foreign currency exchange rates (economic hedges).

The line-items and fair values for these instruments in the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 was as follows (in thousands):

	March 31, 2026		December 31, 2025
Interest rate swaps (designated as hedging instruments)
Prepaid expenses and other assets	$	6,528	$	2,190
Other liabilities	3,642		10,323
Foreign exchange forward contracts (not designated as hedging instruments)
Prepaid expenses and other assets	4,911		914
Other liabilities	891		2,062

Prepaid expenses and other assets and Other liabilities as of March 31, 2026, totaled $134.8 million and $99.5 million, respectively. The increases compared to December 31, 2025 were due primarily to the receipt of a derivative settlement payment made in error by the financial institution counterparty on March 31, 2026. The funds were recorded as restricted cash on March 31, 2026, and returned to the counterparty the following day.

Derivatives designated as hedging instruments

The effects of interest rate swaps designated as cash flow hedging instruments for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

	Gain recognized in OCI, net of tax
	Three Months Ended March 31,
Hedging instrument	2026		2025
Interest rate swaps	$	8,083	$	76
	Gain/(loss) reclassified from OCI into income
	Three Months Ended March 31,
Income statement line-item	2026		2025
Interest expense, net	$	(336)	$	2,663

As of March 31, 2026 and December 31, 2025, the notional amount of outstanding interest rate swaps was $675.8 million and $883.0 million, respectively. These swaps remained highly effective as of March 31, 2026 and have remaining terms ranging from 10 months to approximately four years. As of March 31, 2026, the Company estimates that approximately zero net derivative losses included in other comprehensive income ("OCI") will be reclassified into earnings within the next 12 months.

Derivatives not designated as hedging instruments

The effects of foreign exchange forward contracts not designated as hedging instruments for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

	Three Months Ended March 31,
Income statement line-item	2026		2025
Foreign exchange gain/(loss), net	$	8,679	$	1,494
Interest expense, net	350		(151)

As of March 31, 2026 and December 31, 2025, the notional amount of outstanding foreign exchange forward contracts was $432.9 million and $444.2 million, respectively.

Offsetting

The Company's policy is to report derivative asset and liability positions on a gross basis. As of March 31, 2026, none of the open derivative positions would have been eligible for offsetting under the terms of the Company's netting agreements.