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Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Designated Non-derivative Financial Instruments

During the three months ended March 31, 2026, the Australian dollar-denominated Senior Unsecured Revolving Credit Facility, that was previously held by the Company’s United States-based subsidiary, was fully repaid and redrawn by its Australian-based subsidiary. As a result, the Company no longer designated the revolver draw as a hedge of its net investment in its Australian-based subsidiary as of March 31, 2026.

As of March 31, 2026, the Company designated €820.5 million of debt and accrued interest as a hedge of its net investment in its Europe-based subsidiary. As of December 31, 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 its Australian-based and Europe-based subsidiaries, respectively. The remeasurement of these instruments is recorded in “Unrealized net gain (loss) on foreign currency” on the accompanying Condensed Consolidated Statements of Comprehensive Loss.
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 amounts. 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 tables include the key provisions of the Company’s interest rate swap agreements, including the fair value, as of March 31, 2026 and December 31, 2025:
NotionalFixed Base Interest Rate SwapEffective DateExpiration Date
Asset Fair Value as of March 31, 2026
Liability Fair Value as of March 31, 2026
(In thousands)
$200 million
3.05%12/29/20237/30/2027$1,486 $— 
$175 million
3.47%11/30/20227/30/2027340 — 
$270 million
3.05%11/01/202212/31/20272,482 — 
C$250 million
3.59%9/23/202212/31/2027— 1,890 
Total$4,308 $1,890 
NotionalFixed Base Interest Rate SwapEffective DateExpiration Date
Asset Fair Value as of December 31, 2025
Liability Fair Value as of December 31, 2025
(In thousands)
$200 million
3.05%12/29/20237/30/2027$736 $— 
$175 million
3.47%11/30/20227/30/2027— 493 
$270 million
3.05%11/01/202212/31/20271,170 — 
C$250 million
3.59%9/23/202212/31/2027— 2,910 
Total$1,906 $3,403 
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 effectively mitigate the Company’s exposure to fluctuations in cash flows due to changes in foreign exchange rates. The Company previously had one outstanding intercompany loan balance of A$153.5 million that was hedged under a cross-currency swap agreement in 2025. This agreement involved the receipt of fixed USD amounts in exchange for payment of fixed AUD amounts over the life of the respective intercompany loan. On December 23, 2025, the Company terminated the cross-currency swap agreement and received cash proceeds of approximately $8.2 million from the counterparty. The related intercompany loan was fully repaid on January 28, 2026.
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”.
There have been no significant changes to our policy or strategy related to derivative financial instruments from that disclosed in our 2025 Annual Report on Form 10-K.
For derivatives designated and that qualify as cash flow hedges, the gain or loss on the derivative instrument is recorded as “Unrealized net gain (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 $1.9 million 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 months ended March 31, 2026 and 2025, 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 March 31,
20262025
(In thousands)
Interest rate swaps$4,305 $(6,521)
Treasury locks— 1,292 
Cross-currency swap— (2,540)
Total designated derivative financial instruments$4,305 $(7,769)
Location of Gain or (Loss) Reclassified from AOCI into EarningsAmount of Gain or (Loss) to Earnings from AOCI Reclassifications
Three Months Ended March 31,
20262025
(In thousands)
Interest rate swapsInterest expense$390 $1,799 
Treasury locksInterest expense46 — 
Cross-currency swapForeign currency exchange loss, net— (895)
Cross-currency swapInterest expense— 163 
Total designated derivative financial instruments$436 $1,067 
The Company’s derivatives are subject to master netting agreements. There were no impacts from offsetting as of March 31, 2026 and the impacts from offsetting were immaterial as of December 31, 2025.
As of March 31, 2026 and December 31, 2025, 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.