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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Designated Non-derivative Financial Instruments

As of September 30, 2025, the Company designated A$207.5 million and €820.5 million of debt and accrued interest as a hedge of its net investment in the respective international subsidiaries. As of December 31, 2024, the Company designated A$197.0 million and €820.5 million of debt and accrued interest as a hedge of its net investment in the respective international subsidiaries. The remeasurement of these instruments is recorded in “Unrealized net (loss) gain on foreign currency” on the accompanying Condensed Consolidated Statements of Comprehensive Loss.

During the three months ended June 30, 2024, the Company determined that its previous designation of £78.0 million of debt and accrued interest as a hedge of its net investment in its United Kingdom-based subsidiary did not qualify for hedge accounting, and the cumulative foreign exchange gain associated with this transaction of $10.4 million, previously classified within “Accumulated other comprehensive loss” on the Condensed Consolidated Balance Sheets, was recorded as a gain from removal of hedge designation within “Other, net” on the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2024. The Company determined that the impacts of this adjustment were immaterial to the prior period interim and annual financial statements and disclosures. Furthermore, the Company fully paid off the balance of this revolving debt during the nine months ended September 30, 2024.
Derivative Financial Instruments
The Company is subject to volatility in interest rates due to its variable-rate debt. To manage this risk, the Company periodically enters into interest rate swap agreements. These agreements involve the receipt of variable-rate amounts in exchange for fixed-rate interest payments over the life of the respective swap agreement without
an exchange of the underlying notional amount. The Company’s objective for utilizing these derivative instruments is to reduce its exposure to fluctuations in cash flows due to changes in interest rates.
The following table includes the key provisions of the Company’s interest rate swap agreements as of September 30, 2025 and December 31, 2024:
NotionalFixed Base Interest Rate SwapEffective DateExpiration Date
Asset Fair Value as of September 30, 2025
Liability Fair Value as of September 30, 2025
(In thousands)
$200 million
3.05%12/29/20237/30/2027$1,128 $— 
$175 million
3.47%11/30/20227/30/2027— 323 
$270 million
3.05%11/01/202212/31/20271,623 — 
C$250 million
3.59%9/23/202212/31/2027— 3,750 
Total$2,751 $4,073 
NotionalFixed Base Interest Rate SwapEffective DateExpiration Date
Asset Fair Value as of December 31, 2024
Liability Fair Value as of December 31, 2024
(In thousands)
$200 million
3.05%12/29/20237/30/2027$4,651 $— 
$175 million
3.47%11/30/20227/30/20272,265 — 
$270 million
3.05%11/01/202212/31/20277,225 — 
C$250 million
3.59%9/23/202212/31/2027— 3,021 
Total$14,141 $3,021 
The Company is also subject to volatility in foreign exchange rates due to its foreign-currency denominated intercompany loans to certain international subsidiaries. To manage this risk, the Company periodically enters into cross-currency swap agreements. These agreements involve the receipt of fixed USD amounts in exchange for payment of fixed foreign currency amounts over the life of the intercompany loan. The Company’s objective for utilizing these derivative instruments is to reduce its exposure to fluctuations in cash flows due to changes in foreign exchange rates. At September 30, 2025 and December 31, 2024, the Company’s outstanding intercompany loan balance with its Australian subsidiary of A$153.5 million was hedged under a cross-currency swap agreement.
In connection with the issuance of the Public 5.600% Notes in April 2025, the Company executed three treasury lock hedge transactions (“treasury locks”) in March 2025 to hedge the risk-free treasury yield component of the overall rate ultimately assigned to the $400.0 million issuance. Further details of both the public debt offering and related treasury locks are described in Note 4 - Debt to these Condensed Consolidated Financial Statements.
As described in Note 1 - General, in March 2025, in connection with the sale of the SuperFrio joint venture which occurred on April 30, 2025, the Company entered into a foreign currency forward contract designated as a net investment hedge of our net investment in our Brazilian subsidiary. The purpose of the hedge contract was to guarantee the repatriation of $27.0 million amidst any foreign currency fluctuation during the holding period that the Brazilian Real were held by our Brazilian subsidiary. The hedge contract net settled in July of 2025 requiring the Company to pay $1.5 million to the hedge counterparty, which resulted in net proceeds repatriated to the U.S. of $27.0 million.
There have been no significant changes to our policy or strategy related to derivative financial instruments from that disclosed in our 2024 Annual Report on Form 10-K.
The Company determines the fair value of its derivative instruments using a present value calculation with significant observable inputs classified as Level 2 of the fair value hierarchy. Derivative asset balances are recorded on the accompanying Condensed Consolidated Balance Sheets within “Other assets” and derivative liability balances are recorded on the accompanying Condensed Consolidated Balance Sheets within “Accounts payable and accrued expenses”.
The following table presents the fair value of the Company’s designated derivative financial instruments as of September 30, 2025 and December 31, 2024:
Derivative AssetsDerivative Liabilities
September 30, 2025December 31, 2024September 30, 2025December 31, 2024
(In thousands)
Designated derivatives
Foreign exchange contracts$9,292 $15,727 $— $— 
Interest rate contracts2,751 14,141 4,073 3,021 
Total fair value of derivatives$12,043 $29,868 $4,073 $3,021 
For derivatives designated and that qualify as cash flow hedges, the gain or loss on the derivative instrument is recorded as “Unrealized net loss on cash flow hedges” on the accompanying Condensed Consolidated Statements of Comprehensive Loss and subsequently reclassified in the period(s) during which the hedged transaction affects earnings within the same income statement and related cash flow line items as the earnings effect of the hedged transaction. During the next twelve months, the Company estimates that an additional $1.2 million (inclusive of the treasury locks) will be reclassified as a decrease to “Interest expense”.
The following tables present the effect of the Company’s designated derivative financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024, including the impacts to Accumulated other comprehensive loss (“AOCI”):
Amount of Gain or (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In thousands)
Interest rate swaps
$515 $(19,429)$(7,312)$2,078 
Treasury locks
— — 1,292 — 
Foreign currency exchange forwards
105 — (1,493)— 
Cross-currency swap
(78)(2,799)(7,884)(664)
Total designated derivative financial instruments
$542 $(22,228)$(15,397)$1,414 
Location of Gain or (Loss) Reclassified from AOCI into Earnings
Amount of Gain or (Loss) to Earnings from AOCI Reclassifications
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(In thousands)
Interest rate swaps
Interest expense$1,679 $4,108 $5,131 $12,771 
Interest rate swaps
Loss on debt extinguishment and termination of derivative instruments(1)
— (218)— (973)
Treasury locks
Interest expense
46 — 91 — 
Foreign currency exchange forwards
Foreign currency exchange loss, net(1,493)— (1,493)— 
Cross-currency swap
Foreign currency exchange loss, net(477)(3,651)(6,498)(1,759)
Cross-currency swap
Interest expense119 13 332 219 
Total designated derivative financial instruments
$(126)$252 $(2,437)$10,258 
(1)In conjunction with the termination of interest rate swaps in 2020, the Company recorded amounts in Accumulated other comprehensive loss that were reclassified as an adjustment to earnings over the term of the original hedges and respective borrowings. During the three and nine months ended September 30, 2024, the Company recorded an increase to “Loss on debt extinguishment and termination of derivative instruments” related to this transaction.
In 2020, the Company terminated the two interest rate swaps related to the 2020 Senior Unsecured Credit Facility for a fee of $16.4 million, of which $8.7 million was recorded in “Accumulated other comprehensive loss” and was amortized to “Loss on debt extinguishment and termination of derivative instruments” through August 2024.
The Company’s derivatives are subject to master netting agreements. The impacts from offsetting were immaterial as of September 30, 2025 and there were no impacts from offsetting as of December 31, 2024.
As of September 30, 2025 and December 31, 2024, the Company has not posted any collateral related to these agreements. The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default of its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness.