Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2026

Fair Value Measurements

The carrying amounts of our cash and cash equivalents (which include money market funds), accounts receivable, accounts payable, accrued expenses, and certain other short‑term assets and liabilities approximate fair value due to their short‑term nature.

Money Market Funds

As of March 31, 2026 and December 31, 2025, the carrying value of our money market funds was $429.4 million and $791.7 million, respectively, which is included in Cash and cash equivalents on our condensed consolidated balance sheets. During the three months ended March 31, 2026 and March 31, 2025, we recognized $3.7 million and $2.5 million, respectively, of dividend income on our money market funds. Dividend income is included in Other income, net in the condensed consolidated statements of operations.

Hedging Instruments

Hedging instruments are re-measured on a recurring basis using pricing models, broker quotes, daily market foreign currency rates, and interest rate curves as applicable (see Note 15) and are categorized within Level 2 of the fair value hierarchy.

Foreign Currency Forward Contracts

The following table summarizes the valuation of our foreign currency forward contracts (see Note 15) that are measured at fair value on a recurring basis and are categorized within Level 2 of the fair value hierarchy as of the periods presented below (in millions):


	Level 2 Fair Value
March 31, 2026
Foreign currency forward contracts—asset position	$	6.2
Foreign currency forward contracts—liability position	(0.9)


Total	$	5.3
December 31, 2025
Foreign currency forward contracts—asset position	$	0.7
Foreign currency forward contracts—liability position	(0.8)


Total	$	(0.1)

There were no transfers of financial instruments between the levels of the fair value hierarchy during the three months ended March 31, 2026 or 2025.

Disclosures about the Fair Value of Financial Instruments

The table below presents information about the fair value of our financial liabilities, and is provided for comparative purposes only relative to the carrying values recognized in the condensed consolidated balance sheets as of the periods presented below (in millions):


		March 31, 2026				December 31, 2025
	Measurement Level	Carrying Value		Fair Value		Carrying Value		Fair Value

2025 Japan ABL Credit Facility	Level 2	$	44.1	$	44.1	$	44.7	$	44.7
2023 Term Loan B	Level 2	$	162.5	$	163.3	$	1,165.6	$	1,170.7
Convertible Notes	Level 2	$	258.3	$	257.8	$	258.3	$	257.8
Equipment Notes	Level 2	$	5.3	$	5.1	$	6.5	$	6.2

Non-recurring Fair Value Measurements

We measure certain long-lived assets, goodwill, non-amortizing intangible assets and investments at fair value on a non-recurring basis, at least annually or more frequently if impairment indicators are present. We did not recognize any impairments related to continuing operations during the three months ended March 31, 2026 and 2025, respectively. Our cost-basis investments are also subject to fair value remeasurements from observable market transactions. For more detail, see Note 9.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details

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