Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market risk from changes in interest rates relates primarily to our debt instruments. Our borrowings include both fixed and variable interest rate debt. At December 31, 2025, we had (i) no outstanding borrowings under the New Credit Facility, $1.4 million in letters of credit issued under the New Credit Facility and $1,248.6 million available under the New Credit Facility, (ii) an aggregate principal amount of $400 million of Senior Notes due 2028 and (iii) an aggregate principal amount of $400 million of Senior Notes due 2029, and (iv) an aggregate principal amount of $1.25 billion of 2030 Notes. See the heading "Liquidity and Capital Resources" in Item 7 of this Report for additional information on our debt instruments.
We also have exposure from changes in interest rates related to our cash equivalents and our investment portfolio, which consists primarily of corporate bonds and mutual funds. We are averse to principal loss and seek to ensure the safety and preservation of our invested funds by limiting default risk, market risk and reinvestment risk.
We have operations in foreign locations, and, as a result, our financial results could be significantly affected by factors such as changes in foreign currency exchange ("FX") rates or weak economic conditions in those foreign markets. In order to manage the operational risks associated with FX rate fluctuations, we attempt to hedge those risks with FX derivative instruments. Historically, we have hedged those risks with FX forward contracts. At December 31, 2025, the fair values of our outstanding FX derivative instruments were not significant. We do not enter into speculative derivative positions.
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Interest Rate Sensitivity
The following tables provide information about our financial instruments that are sensitive to changes in interest rates. The tables present principal cash flows and related weighted-average interest rates by expected maturity dates.
Principal Amount by Expected Maturity
(In thousands)
At December 31, 2025: Fair Value at
Years Ending December 31, December 31,
2026 2027 2028 2029 2030 Thereafter Total 2025
Investments
— — — — — $ 6,945 $ 6,945 $ 8,243
Average Interest Rate
— — — — — —
Note Receivable 6,399 — — — — — $ 6,399 $ 6,433
Average Interest Rate
6.40% — — — — —
Fixed Interest Rate Debt
— — $ 400,000 $ 400,000 — $ 1,967 $ 801,967 $ 784,108
Average Interest Rate
— — 4.13% 4.13% — —
Convertible Senior Notes — $ — $ — — $ 1,250,000 — $ 1,250,000 $ 1,194,533
Average Interest Rate
— — — — — —
At December 31, 2024: Fair Value at
Years Ending December 31, December 31,
2025 2026 2027 2028 2029 Thereafter Total 2024
Investments — — $ 1,479 — — $ 7,700 $ 9,179 $ 10,609
Average Interest Rate — — — — — —
Note Receivable $ 6,467 — — — — — $ 6,467 $ 6,367
Average Interest Rate 6.80% — — — — —
Fixed Interest Rate Debt
— — — $ 400,000 $ 400,000 $ — $ 800,000 $ 746,529
Average Interest Rate
— — — 4.13% 4.13% —
Variable Interest Rate Debt
$ 12,500 $ 12,500 $ 237,500 — — — $ 262,500 $ 262,479
Average Interest Rate
5.39% 5.27% 5.28% — — —
Exchange Rate Sensitivity
The following table provides information about our FX forward contracts outstanding at December 31, 2025 and presents such information in U.S. dollar equivalents. The table presents notional amounts and related weighted-average FX rates by expected (contractual) maturity dates and constitutes a forward-looking statement. These notional amounts generally are used to calculate the contractual payments to be exchanged under the contract. The average contractual FX rates are expressed using market convention, which is dependent on the currencies being bought and sold under the forward contract.
Forward Contracts to Purchase Foreign Currencies in U.S. Dollars (in thousands)
Year Ending Fair Value at Average Contractual
Foreign Currency December 31, 2026 December 31, 2025 Exchange Rate
Canadian dollar $ 1,891 $ 9,820 1.3689
U.S. dollar (selling Canadian dollar) $ 215,979 $ (4,601) 1.3786
Euro (selling Canadian dollar) $ 13,099 $ 122 1.6128
Year Ending Fair Value at Average Contractual
Foreign Currency December 31, 2027 December 31, 2025 Exchange Rate
U.S. dollar (selling Canadian dollar) $ 3,569 $ (14) 1.3559
Euro (selling Canadian dollar) $ 6,444 $ (41) 1.6296
Year Ending Fair Value at Average Contractual
Foreign Currency December 31, 2028 December 31, 2025 Exchange Rate
Euro (selling Canadian dollar) $ 5,901 $ (93) —
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