Item 3. Quantitative and Qualitative Disclosures about Market Risk

Refer to “Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2024 for a discussion of our foreign currency exchange risk.

Interest Rate Risk

Our exposure to changes in interest rates is associated with borrowings under our Revolving Credit Facility and our Term Loan, both of which are variable-rate debt. At September 30, 2025, no amounts were outstanding under our Revolving Credit Facility. In April 2025, our previous interest rate swaps expired, and we entered into new interest rate swap agreements to effectively convert $460.0 million of our term loan borrowings from a variable rate to a fixed rate. These interest rate swaps are intended to mitigate the exposure to fluctuations in interest rates and qualify for hedge accounting treatment as cash flow hedges. A 100 basis point increase or decrease in interest rates as of September 30, 2025 would have an insignificant impact on our annual earnings.

Market Price Sensitive Instruments

As discussed in note 9 to the consolidated financial statements during the three months ended September 30, 2025, we redeemed all of the remaining 0.375% Convertible Senior Notes that were previously outstanding and settled all of the related capped calls options. Accordingly, we no longer have any market price sensitive instruments.