Derivatives and Hedging |
9 Months Ended |
|---|---|
Sep. 30, 2025 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Derivatives and Hedging | Derivatives and Hedging Cash flow hedge In July 2015, the Company entered into a series of $300.0 million notional Treasury rate lock contracts which were designated and qualified as cash flow hedges. The Company documented its hedging strategy and risk management objective for this contract in anticipation of a future debt issuance. The Treasury rate lock contract eliminated the impact of fluctuations in the underlying benchmark interest rate for future forecasted debt issuances. The Company assessed the effectiveness of the hedging contract at inception and on a quarterly basis thereafter. The forecasted debt issuances occurred in July 2016 and the Treasury rate lock, which had an accumulated fair value of $(34.4) million, was settled. Refer to Note 7, Borrowings and Debt, for additional information on the debt issuances. As of September 30, 2025, the balance recorded in accumulated other comprehensive income (loss) before tax was $(3.4) million. This balance will be reclassified to earnings through interest expense over the life of the issued debt. The Company reclassified $1.0 million and $0.9 million for the three months ended September 30, 2025 and 2024, respectively. Amounts of $2.9 million and $2.6 million have been reclassified for the nine months ended September 30, 2025 and 2024, respectively. During the next twelve months the Company expects to reclassify approximately $3.4 million to interest expense.
|