We are exposed to market risk relating to our operations due to changes in interest rates, foreign currency exchange rates and commodity prices of purchased raw materials. We manage the exposure to these risks through a combination of normal operating and financing activities and derivative financial instruments such as interest rate swaps, commodity cash flow hedges and foreign currency forward exchange contracts. All hedging transactions are authorized and executed pursuant to clearly defined policies and procedures, which prohibit the use of financial instruments for speculative purposes. Generally, hedges are recorded on the balance sheet at fair value and are accounted for as cash flow hedges, with changes in fair value recorded in Accumulated Other Comprehensive Income (Loss) (“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on derivatives not designated as hedges are recognized in current earnings. Interest Rate Risk We are exposed to interest rate risk on certain of our outstanding debt obligations used to finance our operations and acquisitions. Loans under the 2025 Credit Agreement bear interest at variable rates plus a margin, based on our consolidated net leverage ratio. As of June 30, 2026, we had $3,717.5 million of fixed rate debt and $922.5 million of variable rate debt. Interest rate swaps have been utilized in prior years to manage interest rate risk associated with the Company's floating rate borrowings. There were no outstanding interest rate swaps as of June 30, 2026 and December 31, 2025. We entered into two forward starting pay fixed/receive floating non-amortizing interest rate swaps in June 2020, with a total notional amount of $250.0 million. These swaps were terminated in March 2022. The cash proceeds of $16.2 million received to settle the terminated swaps were recognized as a reduction to interest expense via the effective interest rate method through June 2025 when the related Term Facility was repaid. We entered into two additional forward starting pay fixed/receive floating non-amortizing interest rate swaps in May 2022, with a total notional amount of $250.0 million and scheduled expiration in March 2027. Upon inception, the swaps were designated as cash flow hedges against forecasted interest payments with gains and losses, net of tax, measured on an ongoing basis, recorded in AOCI. These swaps were terminated on June 30, 2025 in connection with the repayment of the related Term Facility, resulting in cash proceeds and recognized gain of $3.1 million. The gain was recorded in Interest Expense on the Condensed Consolidated Statement of Income. Foreign Currency Risk We are exposed to foreign currency risks that arise from normal business operations. These risks include the translation of local currency balances of foreign subsidiaries, intercompany loans with foreign subsidiaries and transactions denominated in foreign currencies. Our objective is to minimize our exposure to these risks through a combination of normal operating activities and the utilization of foreign currency exchange contracts to manage our exposure on the forecasted transactions denominated in currencies other than the applicable functional currency. Contracts are executed with credit worthy banks and are denominated in currencies of major industrial countries. We do not hedge our exposure to the translation of reported results of foreign subsidiaries from local currency to United States dollars. As of June 30, 2026, derivative currency assets (liabilities) of $10.7 million, $0.4 million, and $(10.2) million are recorded in Prepaid Expenses and Other Current Assets, Other Noncurrent Assets, and Other Accrued Expenses, respectively. As of December 31, 2025, derivative currency assets (liabilities) of $11.2 million, $0.5 million, and $(2.9) million, are recorded in Prepaid Expenses and Other Current Assets, Other Noncurrent Assets and Other Accrued Expenses, respectively. There were unrealized gains on derivatives designated as hedges of $4.9 million and $4.7 million, net of tax, recorded in AOCI as of June 30, 2026 and December 31, 2025, respectively. We had net of tax gains of $4.7 million and $2.3 million, as of June 30, 2026 and December 31, 2025, respectively, related to currency derivative gains on closed hedge instruments in AOCI that will be realized in earnings when the hedged items affect earnings. 44 The following table quantifies the outstanding foreign exchange contracts intended to hedge non-US dollar denominated receivables and payables and the corresponding impact on the value of these instruments assuming a hypothetical 10% appreciation/depreciation of their counter currency on June 30, 2026: Gain (Loss) From Currency Notional Amount Fair Value 10% Appreciation of Counter Currency 10% Depreciation of Counter Currency Euro $ 875.2 $ (5.2) $ 87.5 $ (87.5) Chinese Renminbi 475.8 2.4 47.6 (47.6) Mexican Peso 467.3 7.1 46.7 (46.7) Canadian Dollar 193.4 (1.8) 19.3 (19.3) Swedish Krona 53.2 0.1 5.3 (5.3) Indian Rupee 43.4 (1.3) 4.3 (4.3) Australian Dollar 29.6 (0.3) 3.0 (3.0) British Pound 25.9 (0.1) 2.6 (2.6) Gains and losses indicated in the sensitivity analysis would be offset by gains and losses on the underlying forecasted non-US dollar denominated cash flows. Commodity Price Risk We periodically enter into commodity hedging transactions to reduce the impact of changing prices for certain commodities such as copper and aluminum based upon forecasted purchases of such commodities. The contract terms of commodity hedge instruments generally mirror those of the hedged item, providing a high degree of risk reduction and correlation. Derivative commodity assets (liabilities) of $8.4 million, $0.4 million and $(0.2) million, were recorded in Prepaid Expenses and Other Current Assets, Other Noncurrent Assets, and Other Accrued Expenses, respectively as of June 30, 2026. Derivative commodity assets (liabilities) of $9.5 million, $1.1 million, and $(0.4) million are recorded in Prepaid Expenses and Other Current Assets, Other Noncurrent Assets, and Other Accrued Expenses, respectively as of December 31, 2025. There were unrealized gains on derivatives designated as hedges of $6.6 million and $7.8 million, net of tax, recorded in AOCI as of June 30, 2026 and December 31, 2025, respectively. We had derivative commodity gains of $3.6 million and $1.5 million, net of tax, as of June 30, 2026 and December 31, 2025, respectively, on closed hedge instruments in AOCI that will be realized in earnings when the related hedged items affect earnings. The following table quantifies the outstanding commodity contracts intended to hedge raw material commodity prices and the corresponding impact on the value of these instruments assuming a hypothetical 10% appreciation/depreciation of their prices on June 30, 2026: Gain (Loss) From Commodity Notional Amount Fair Value 10% Appreciation of Commodity Prices 10% Depreciation of Commodity Prices Copper $ 101.6 $ 8.6 $ 10.2 $ (10.2) Gains and losses indicated in the sensitivity analysis would be offset by the actual prices of the commodities. The net AOCI hedging component balance consists of $19.8 million of gains as of June 30, 2026 which includes $19.2 million of net current deferred gains that are expected to be realized in the next twelve months. The gain or loss reclassified from AOCI into earnings on such derivatives will be recognized in the same period in which the related item affects earnings. 45 Counterparty Risk We are exposed to credit losses in the event of non-performance by the counterparties to various financial agreements, including our foreign currency exchange contracts and commodity hedging transactions. We manage exposure to counterparty credit risk by limiting our counterparties to major international banks and financial institutions meeting established credit guidelines and continually monitoring their compliance with the credit guidelines. We do not obtain collateral or other security to support financial instruments subject to credit risk. We do not anticipate non-performance by our counterparties but cannot provide assurances. 46