Derivative Instruments

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 10: Derivative Instruments

Foreign Currency Forward Contracts - Hedging Instruments

Due to the global nature of our operations, portions of our revenue and operating expense are recorded in currencies other than the U.S. dollar. The value of revenue and operating expense measured in U.S. dollars is therefore subject to changes in foreign currency exchange rates. We enter into foreign currency forward contracts and foreign currency options with financial institutions with the primary objective to mitigate the impact of foreign currency exchange rate fluctuations on our international revenue and operating expense.

Foreign currency forward contracts and foreign currency options in effect as of December 31, 2025 and 2024, had durations of 1 to 21 months and 1 to 12 months, respectively. These contracts have been designated as cash flow hedges and unrealized gains and losses on the portion of these foreign currency forward contracts and foreign currency options that are included in the effectiveness test are reported in AOCI. Realized gains and losses of such contracts and options are recognized in revenue when the sale of product in the currency being hedged is recognized and in operating expense when the expense in the currency being hedged is recorded. We recognize all cash flow hedge reclassifications from AOCI and fair value changes of excluded portions in the same line item in our consolidated statements of income that have been impacted by the hedged item.

The notional amount of foreign currency forward contracts and foreign currency options that were entered into to hedge forecasted revenue and operating expense is summarized as follows:

	Notional Amount As of December 31,
(In millions)	2025		2024
Euro	$	1,531.0	$	1,062.6
British pound	—		133.8
Canadian dollar	—		38.6
Total foreign currency forward contracts and options	$	1,531.0	$	1,235.0

The pre-tax portion of the fair value of these foreign currency forward contracts and foreign currency options that were included in AOCI in total equity is summarized as follows:

	For the Years Ended December 31,
(In millions)	2025		2024		2023
Unrealized gains	$	—	$	50.6	$	—
Unrealized (losses)	(73.3)		(0.3)		(34.8)
Net unrealized gains (losses)	$	(73.3)	$	50.3	$	(34.8)

We expect the net unrealized losses of approximately $73.3 million to be settled over the next 15 months, of which approximately $68.5 million of these net unrealized losses are expected to be settled over the next 12 months, with any amounts in AOCI to be reported as an adjustment to revenue or operating expense. We consider the impact of our and our counterparties’ credit risk on the fair value of the contracts as well as the ability of each party to execute its contractual obligations. As of December 31, 2025 and 2024, credit risk did not materially change the fair value of our foreign currency forward contracts and forward currency options.

The following table summarizes the effect of foreign currency forward contracts and forward currency options designated as hedging instruments in our consolidated statements of income:

For the Years Ended December 31,
Net Gains/(Losses) Reclassified from AOCI into Operating Income (in millions)							Net Gains/(Losses) Excluded from Effectiveness Testing and Recognized in Operating Income (in millions)
Location	2025		2024		2023		Location	2025		2024		2023
Revenue	$	(72.4)	$	18.1	$	11.6	Revenue	$	9.7	$	(0.8)	$	(2.4)
Operating expense	21.3		(12.9)		3.7		Operating expense	—		—		—

Foreign Currency Forward Contracts - Other Derivative Instruments

We also enter into other foreign currency forward contracts, usually with durations of one month or less, to mitigate the foreign currency risk related to certain balance sheet positions. We have not elected hedge accounting for these transactions.

The aggregate notional amount of these outstanding foreign currency forward contracts was $1,193.7 million and $738.7 million as of December 31, 2025 and 2024, respectively. Net gains of $33.5 million, net losses of $49.7 million and net gains of $3.8 million related to these contracts were recorded as a component of other (income) expense, net for the years ended December 31, 2025, 2024 and 2023, respectively.

Summary of Derivative Instruments

While certain of our derivative instruments are subject to netting arrangements with our counterparties, we do not offset derivative assets and liabilities in our consolidated balance sheets. The amounts in the table below would not be substantially different if the derivative assets and liabilities were offset.

The following table summarizes the fair value and presentation in our consolidated balance sheets of our outstanding derivative instruments, including those designated as hedging instruments:

		As of December 31,
(In millions)	Balance Sheet Location	2025		2024
Cash Flow Hedging Instruments:
Asset derivative instruments	Other current assets	$	0.1	$	58.4
	Investments and other assets	0.4		—
Liability derivative instruments	Accrued expense and other	54.0		0.3
	Other long-term liabilities	2.2		—
Other Derivative Instruments:
Asset derivative instruments	Other current assets	9.9		4.1
Liability derivative instruments	Accrued expense and other	2.7		11.4