Quarterly report [Sections 13 or 15(d)]

Derivatives

v3.26.1
Derivatives
3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
Interest Rate Cap
In 2022, the Company entered into an interest rate cap agreement to manage its exposure to interest rate fluctuations related
to the Company’s Term Loan in the amount of $25.5 million. The interest rate cap had a $1,000.0 million notional amount,
2.75% strike, and terminated on December 31, 2025. At inception, the Company formally designated the interest rate cap
as a cash flow hedge, which remained effective through the instrument’s termination date.
For the three months ended March 31, 2025, the decrease of $4.1 million in the fair value of the interest rate cap was
recognized in OCI. See Note 16, Income Taxes, for further information on the tax effects on OCI related to the interest rate
cap. The location and gains (losses) related to the interest rate cap were recognized on the Consolidated Statements of
Income (Loss) as follows:
Income Statement Caption
Three Months Ended
March 31, 2025
Interest rate cap premium amortization
Interest expense, net
$(1,739)
Amounts reclassified out of other comprehensive income related
to the interest rate cap
Interest expense, net
3,953
Total impact of derivatives designated as hedging instruments
$2,214
See Note 13, Fair Value Measurements, for information on the fair value of the interest rate cap.