In the normal course of business, the Company is exposed to risks relating to changes in interest rates, foreign currency exchange rates and commodity prices. Derivative financial instruments, such as interest rate swaps, net investment hedges, foreign currency exchange forward contracts and commodities derivative contracts are used to manage the risks associated with changes in the conditions of those markets. The counterparties to the Company’s derivative agreements are primarily major international financial institutions. The Company regularly monitors its derivative positions and the credit ratings of its counterparties and does not anticipate nonperformance on their part.

All derivatives are recognized in the Consolidated Balance Sheets at fair value. Realized gains and losses on foreign currency forward contracts, commodity derivative contracts and the net periodic payments from interest rate swaps and cross-currency swaps are reflected as "Cash flows from operating activities" in the Condensed Consolidated Statement of Cash Flows.

The Company uses interest rate swaps and cross-currency swaps to reduce its exposure to interest rate risk and foreign currency risk. The Company has designated its interest rate swaps as cash flow hedges and its cross-currency swaps as net investment hedges of the foreign currency exposure of a portion of its net investment in euro functional subsidiaries. These swaps effectively convert the Company's outstanding term loans, which are U.S. dollar denominated debt obligations, into fixed-rate euro-denominated debt through their respective expiration dates.

The total notional value of the interest rate swaps and cross-currency swaps was $1.15 billion at March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, approximately $389 million in notional value matures in January 2025 and the remaining balance in December 2028. The net result of these hedges is an interest rate of approximately 3.2% at March 31, 2024 on the term loans B-2, which could vary in the future due to changes in the euro and the U.S. dollar exchange rate.

Changes in the estimated fair value of interest rate swaps are recorded in "Accumulated other comprehensive loss" and reclassified to "Interest expense, net" in the Condensed Consolidated Statements of Operations as the underlying hedged item

Changes in the estimated fair value of cross-currency swaps are recorded in "Foreign currency translation" in "Accumulated other comprehensive loss." The fair value of the cross-currency swaps was a net asset of $27.7 million and $4.8 million at March 31, 2024 and December 31, 2023, respectively.

For the three months ended March 31, 2024, these interest rate swaps and cross-currency swaps were deemed highly effective. The Company expects to reclassify a $24.2 million benefit from "Accumulated other comprehensive loss" to "Interest expense, net" in the Condensed Consolidated Statements of Operations within the next twelve months.

The Company conducts a significant portion of its business in currencies other than the U.S. dollar and certain subsidiaries conduct business in currencies other than their functional currency, which is typically their local currency. As a result, the Company’s operating results are impacted by foreign currency exchange rate volatility.

At March 31, 2024, the Company held foreign currency forward contracts to purchase and sell various currencies to mitigate foreign currency exposure primarily with the U.S. dollar, euro and British pound. The Company has not designated any foreign currency exchange forward contracts as eligible for hedge accounting and, as a result, changes in the fair value of foreign currency forward contracts are recorded in the Condensed Consolidated Statements of Operations as "Other (expense) income, net." The total notional value of foreign currency exchange forward contracts held at March 31, 2024 and December 31, 2023 was approximately $110 million and $93.9 million, respectively, with settlement dates generally within one year. The fair value of the foreign currency forward contracts was a $0.2 million net current asset and a $0.7 million net current liability at March 31, 2024 and December 31, 2023, respectively.

The Company enters into commodity derivative contracts for the purpose of mitigating its exposure to fluctuations in prices of certain metals used in the production of its finished goods. The Company held derivative contracts to purchase and sell various metals, primarily tin and silver, for a notional amount of $74.7 million and $63.8 million at March 31, 2024 and December 31, 2023, respectively. The fair value of the metals derivative contracts was a net current liability of $1.9 million and $1.2 million at March 31, 2024 and December 31, 2023, respectively. Substantially all contracts outstanding at March 31, 2024 have delivery dates within one year. The Company has not designated these derivatives as hedging instruments and, accordingly, records changes in their fair values in the Condensed Consolidated Statements of Operations as "Other (expense) income, net."


(dollars in millions)	Balance sheet location	Classification	March 31, 2024		December 31, 2023
Asset Category
Foreign exchange contracts	Other current assets	Level 2	$	0.3	$	0.2
Metals contracts	Other current assets	Level 2	0.9		0.5
Interest rate swaps	Other current assets	Level 2	24.2		19.9
Cross-currency swaps	Other current assets	Level 2	33.7		5.9
Interest rate swaps	Other assets	Level 2	—		4.3
Cross-currency swaps	Other assets	Level 2	—		9.6
Available-for-sale debt securities	Other assets	Level 3	11.2		14.2
Total			$	70.3	$	54.6

Liability Category
Foreign exchange contracts	Accrued expenses and other current liabilities	Level 2	$	0.1	$	0.9
Metals contracts	Accrued expenses and other current liabilities	Level 2	2.8		1.7

Cross-currency swaps	Accrued expenses and other current liabilities	Level 2	—		0.9
Interest rate swaps	Other liabilities	Level 2	0.2		12.3
Cross-currency swaps	Other liabilities	Level 2	6.0		9.8
Total			$	9.1	$	25.6

The fair values of Level 1 and Level 2 derivative assets and liabilities are determined using pricing models based upon observable market inputs, such as market spot and futures prices on over-the-counter derivative instruments, market interest rates and consideration of counterparty credit risk. Level 3 investments are valued using a probability weighted methodology based on possible outcomes of potential liquidity events. Significant assumptions include the enterprise valuation, the timing and type of liquidation events and the risk-free interest rate.

The carrying value and estimated fair value of the Company’s long-term debt totaled $1.93 billion and $1.88 billion, respectively, at March 31, 2024. At December 31, 2023, the carrying value and estimated fair value totaled $1.93 billion and $1.89 billion, respectively. The carrying values noted above include unamortized discounts and debt issuance costs. The estimated fair value of long-term debt is measured using quoted market prices for similar instruments at the reporting date multiplied by the gross carrying amount of the related debt, which excludes unamortized discounts and debt issuance costs. Such instruments are valued using Level 2 inputs.