21. Fair Value of Financial Instruments

The Company measures the following financial assets and liabilities at fair value on a recurring basis. The following tables set forth the Company’s financial instruments and present them within the fair value hierarchy using the lowest level of input that is significant to the fair value measurement (in millions):

December 31, 2025

 

Total

 

 

Quoted Prices
in Active
Markets
Available
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Forward currency contracts

 

 

2.8

 

 

 

 

 

 

2.8

 

 

 

 

Total assets recorded at fair value

 

$

2.8

 

 

$

 

 

$

2.8

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration (note 23)

 

$

10.2

 

 

$

 

 

$

 

 

$

10.2

 

Hybrid instruments liabilities (note 24)

 

 

19.6

 

 

 

 

 

 

 

 

 

19.6

 

Interest rate and cross-currency swap agreements (note 22)

 

 

37.8

 

 

 

 

 

 

37.8

 

 

 

 

Forward currency contracts

 

 

1.0

 

 

 

 

 

 

1.0

 

 

 

 

Equity interest purchase option liability (a)

 

 

11.0

 

 

 

 

 

 

 

 

 

11.0

 

Total liabilities recorded at fair value

 

$

79.6

 

 

$

 

 

$

38.8

 

 

$

40.8

 

 

December 31, 2024

 

Total

 

 

Quoted Prices
in Active
Markets
Available
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits and money market funds

 

$

17.2

 

 

$

 

 

$

17.2

 

 

$

 

Interest rate and cross-currency swap agreements (note 22)

 

 

21.8

 

 

 

 

 

 

21.8

 

 

 

 

Forward currency contracts

 

 

6.0

 

 

 

 

 

 

6.0

 

 

 

 

Total assets recorded at fair value

 

$

45.0

 

 

$

 

 

$

45.0

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration (note 23)

 

$

17.3

 

 

$

 

 

$

 

 

$

17.3

 

Hybrid instruments liabilities (note 24)

 

 

78.1

 

 

 

 

 

 

 

 

 

78.1

 

Interest rate and cross-currency swap agreements (note 22)

 

 

17.2

 

 

 

 

 

 

17.2

 

 

 

 

Forward currency contracts

 

 

0.5

 

 

 

 

 

 

0.5

 

 

 

 

Equity interest purchase option liability (a)

 

 

14.9

 

 

 

 

 

 

 

 

 

14.9

 

Total liabilities recorded at fair value

 

$

128.0

 

 

$

 

 

$

17.7

 

 

$

110.3

 

(a)
Equity interest purchase option liability is related to the Company’s investment in NovAliX, refer to Note 5, Minority and Equity-Method Investments for more information.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Feb 28, 2022
2020Mar 1, 2021
2019Mar 27, 2020
2018Mar 1, 2019
2017Mar 16, 2018
2016Mar 1, 2017
2015Feb 29, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.