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Financial Instruments and Risk Management
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments and Risk Management Financial Instruments and Risk Management
Cash Flow Hedges
Foreign Currency Exchange Risk Management
As of June 30, 2025, there were $4.3 million open foreign currency derivative contracts. The fair value of the designated foreign currency hedge contracts was a net asset (liability) of $(0.3) million and $0.1 million at June 30, 2025 and December 31, 2024, respectively.
Commodity Price Risk Management
As of June 30, 2025, we had 1.8 million mmBTUS (millions of British Thermal Units) in open natural gas derivative contracts, designated as cash flow hedges. As of June 30, 2025, open natural gas derivative contracts hedge a portion of forecasted transactions until September 2026. The fair value of the open natural gas derivative contracts was a net asset (liability) of $(0.5) million and $0.3 million as of June 30, 2025 and December 31, 2024, respectively.
Interest Rate Risk Management
During the third quarter of 2024, we entered into a floating-to-fixed interest rate swap to convert a notional amount of $200.0 million of the variable, Secured Overnight Financing Rate ("SOFR") based interest component of our debt to a fixed rate. In accordance with the terms of this instrument, we receive floating rate interest payments based upon one-month U.S. dollar SOFR, which was 4.32 percent as of June 30, 2025, and in return are obligated to pay interest at a fixed rate of 3.84 percent until August 2026. The fair value of the interest rate swap was an asset (liability) of $(0.2) million and $0.6 million at June 30, 2025 and December 31, 2024, respectively.
Effect of Cash Flow Hedge Accounting on AOCI
In millionsAmount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Reclassified from AOCI into Net income (loss)Location of Gain (Loss) Reclassified from AOCI in Net income (loss)
Three Months Ended June 30,
2025202420252024
Cash flow hedging derivatives
Currency exchange contracts$(0.4)$0.1 $(0.2)$— Net sales
Natural gas contracts(1.4)— 0.1 (0.8)Cost of sales
Interest rate swap contracts— — — — Interest expense, net
Total$(1.8)$0.1 $(0.1)$(0.8)
In millionsAmount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Reclassified from AOCI into Net income (loss)Location of Gain (Loss) Reclassified from AOCI in Net income (loss)
Six Months Ended June 30,
2025202420252024
Cash flow hedging derivatives
Currency exchange contracts$(0.5)$0.1 $(0.2)$— Net sales
Natural gas contracts(0.4)(0.4)(0.1)(1.5)Cost of sales
Interest rate swap contracts(0.8)— — — Interest expense, net
Total$(1.7)$(0.3)$(0.3)$(1.5)
Within the next twelve months, we expect to reclassify $0.4 million of net gains from AOCI to income, before taxes.
Fair Value Measurements
The following information is presented for derivative assets and liabilities that are recorded in the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that are recorded at fair value between Level 1 and Level 2 during the periods reported. There were no nonrecurring fair value measurements related to derivative assets and liabilities on the condensed consolidated balance sheets as of June 30, 2025, or December 31, 2024.
June 30, 2025
In millions
Level 1(1)
Level 2(2)
Level 3(3)
Total
Assets:
Currency exchange contracts (4)
$— $0.2 $— $0.2 
Total assets$— $0.2 $— $0.2 
Liabilities:
Natural gas contracts (6)
$— $0.5 $— $0.5 
Currency exchange contracts (6)
— 0.5 — 0.5 
Interest rate swap contracts (7)
— 0.2 — 0.2 
Total liabilities$— $1.2 $— $1.2 
December 31, 2024
In millions
Level 1(1)
Level 2(2)
Level 3(3)
Total
Assets:
Natural gas contracts (4)
$— $0.4 $— $0.4 
Currency exchange contracts (4)
— 0.2 — 0.2 
Interest rate swap contracts (5)
— 0.6 — 0.6 
Total assets$— $1.2 $— $1.2 
Liabilities:
Natural gas contracts (6)
$— $0.1 $— $0.1 
Currency exchange contracts (6)
— 0.1 — 0.1 
Total liabilities$— $0.2 $— $0.2 
_______________
(1) Quoted prices in active markets for identical assets.
(2) Quoted prices for similar assets and liabilities in active markets.
(3) Significant unobservable inputs.
(4) Included within "Prepaid and other current assets" on the condensed consolidated balance sheets.
(5) Included within "Other assets" on the condensed consolidated balance sheets.
(6) Included within "Accrued expenses" on the condensed consolidated balance sheets.
(7) Included within "Other liabilities" on the condensed consolidated balance sheets.