We have policies governing the use of derivative instruments and do not enter into financial instruments for trading or speculative purposes.

By using derivative instruments, we are subject to credit and market risk. To minimize counterparty credit (or repayment) risk, we enter into transactions, primarily with investment grade financial institutions. The market risk exposure is not hedged in a manner to completely eliminate the effects of changing market conditions on earnings or cash flow. No significant concentration of credit risk existed as of December 31, 2025 and 2024.

Interest rate swaps—On November 14, 2017 the Company acquired floored forward interest rate swaps to hedge interest rate risk on current euro-denominated term loan financing. In July 2024 our interest rate swap expired and was not renewed. There were no material transactions recorded as a result of the expiration.

In April 2025, to hedge the variable interest rate Euro-denominated term loan, the Company entered into two interest rate swaps aggregating to €200.0 million. The interest rate for two fixed interest rate swaps are 1.925% and 1.928%. The floating rate is based on SOFR. The interest rate swaps will expire on September 25, 2028 in line with the maturity of the Term Loan.

Cross currency swap—On May 15, 2018 the Company entered into a $235.0 million cross-currency swap to hedge both foreign exchange rate and interest rate risk on current USD-denominated term loan financing which replaced the USD-denominated Caps terminated on May 14, 2018. Both of these instruments were designated as accounting hedges at the time we entered into the transactions.

In September 2021, the Company restructured its previously existing cross-currency swaps in the amount of $197 million, to align with terms of the new U.S. dollar denominated term loan credit facility. Specifically for changes in the loan interest margin of 2.25% (formerly 2.0%) and the three-month USD-LIBOR floor of 0.50% (formerly 0.00%). The cross-currency swap became effective on September 30, 2021 and will expire on September 30, 2028, in line with the maturity of the term loan. This cross-currency swap was determined to be highly effective, continues to qualify for hedge accounting and was cost-neutral.


	December 31, 2025				December 31, 2024				Balance Sheet Classification
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(In millions)
Assets
Derivatives designated as hedges:
Cross currency swaps	$	197.0	$	12.2	$	197.0	$	38.9	Other financial assets (non-current)
Interest rate swaps	235.0		1.8		—		—		Other financial assets (non-current)
Total	$	432.0	$	14.0	$	197.0	$	38.9

Liabilities
Derivatives designated as hedges:
Cross currency swaps	$	—	$	—	$	—	$	—	Other liabilities (non-current)
Interest rate swaps	—		—		—		—		Other liabilities (non-current)
Total	$	—	$	—	$	—	$	—

All financial instruments in the table above are classified as Level 2. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.

For financial assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period. There were no transfers of assets measured at fair value between Level 1 and Level 2, and there were no Level 3 investments during fiscal 2025 and 2024.

Our cross currency swaps designated as a cash flow hedge of principal and interest payments related to our Term Loan matures in September 2028.

The following table presents the carrying value and estimated fair value of our financial instruments that are not measured at fair value on a recurring basis for the periods presented. Due to the short maturity, the fair value of all non-derivative financial instruments included in Current assets and Current liabilities for which the carrying value approximates fair value are excluded from the table below. Short-term and long-term debt are recorded at amortized cost in the Consolidated Balance Sheets.


	December 31, 2025				December 31, 2024
	Notional Amount		Fair Value		Notional Amount		Fair Value
	(In millions)
Non-derivatives:
Liabilities:
Term loan	$	639.7	$	582.8	$	601.9	$	601.9
China Term-loan	52.4		52.9		55.9		56.8
Total	$	692.1	$	635.7	$	657.8	$	658.7

At both December 31, 2025 and 2024, the fair values of Cash and cash equivalents and restricted cash, Accounts receivable, net, Accounts payable and Accrued liabilities and short-term borrowings approximated their carrying values due to the short-term nature of these instruments.

The carrying amounts of our variable rate debt approximates the fair value due to variable interest rates with short reset periods at December 31, 2024.

The following tables summarize the pre-tax effect of derivative and non-derivative instruments recorded in Accumulated other comprehensive loss (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:


	Effect of Financial Instruments
	Year Ended December 31, 2025
	Gain (Loss) Recognized in AOCI		Gain (Loss) Reclassified from AOCI to Income		Additional Gain (Loss) Recognized in Income		Income Statement Classification
	(In millions)
Derivatives designated as hedges:
Cross currency swaps	$	(4.2)	$	(0.7)	$	—	Interest and other financial expense, net
Interest rate swaps	1.7		—		—		Interest and other financial expense, net
Total	$	(2.5)	$	(0.7)	$	—


	Effect of Financial Instruments
	Year Ended December 31, 2024
	Gain (Loss) Recognized in AOCI		Gain (Loss) Reclassified from AOCI to Income		Additional Gain (Loss) Recognized in Income		Income Statement Classification
	(In millions)
Derivatives designated as hedges:
Cross currency swaps	$	(3.3)	$	0.1	$	—	Interest and other financial expense, net
Interest rate swaps	(4.1)		(0.6)		—		Interest and other financial expense, net
Total	$	(7.4)	$	(0.5)	$	—


	Effect of Financial Instruments
	Year Ended December 31, 2023
	Gain (Loss) Recognized in AOCI		Gain (Loss) Reclassified from AOCI to Income		Additional Gain (Loss) Recognized in Income		Income Statement Classification
	(In millions)
Derivatives designated as hedges:
Cross currency swaps	$	(8.9)	$	1.7	$	—	Interest and other financial expense, net
Interest rate swaps	(4.9)		—		—		Interest and other financial expense, net
Total	$	(13.8)	$	1.7	$	—

The amount recognized in AOCI related to cash flow hedges that will be reclassified to the Consolidated Statement of Operations in the next twelve months is approximately $1.2 million.