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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments DERIVATIVE FINANCIAL INSTRUMENTS
The Company's derivative financial instruments primarily consist of interest rate swap contracts, which were entered into with the objective of managing exposure to variability in interest rates on the Company’s variable rate debt. SOFR is the applicable benchmark for all of the Company’s interest rate swap contracts. All interest rate swap contracts are reported at fair value in the Consolidated Balance Sheets. Derivative instruments designated as cash flow hedges were highly effective at inception and are expected to continue to be highly effective.
For interest rate swap contracts that are:
•Not designated as cash flow hedges: Unrealized gains and losses are recognized in interest expense, net, and other income (expense) depending on the nature of the underlying.
•Designated as cash flow hedges: Unrealized gains and losses are recognized as a component of accumulated other comprehensive income (loss) (“AOCI”) and are reclassified into interest expense, net, in the same period in which the related interest on debt affects earnings.
For interest rate swap contracts that have been de-designated as cash flow hedges and for which forecasted cash flows are:
•Probable or reasonably possible of occurring: Unrealized gains and losses previously recognized as a component of AOCI are reclassified into interest expense, net, in the same period in which the related interest on variable-rate debt affects earnings through the original maturity date of the related interest rate swap contracts.
•Probable of not occurring: Unrealized gains and losses previously recognized as a component of AOCI are immediately reclassified into interest expense, net.
Cash flows associated with the Company’s derivatives are reflected as follows:
•Operating activities: Includes cash flows associated with the Company’s interest rate swap contracts that are designated as cash flow hedges.
•Investing activities: Includes cash flows associated with the Company’s interest rate swap contracts that were entered into with the intention of offsetting the economic overhedged position of a portion of the Company’s existing interest rate swaps.
•Financing activities: Includes cash flows associated with the Company’s interest rate swap contracts that included an other-than-insignificant financing element at inception.
(in thousands)December 31,
ExecutionMaturityDesignation20252024
October 2019(1)(2)
September 2026Not designated$2,800,000 $2,800,000 
March 2023March 2028Not designated100,000 100,000 
April 2023March 2028Not designated200,000 200,000 
December 2023(2)
September 2026Not designated700,000 700,000 
June 2025(3)
March 2032
Cash flow hedge
550,000 — 
July 2025(3)
March 2032
Cash flow hedge
500,000 — 
July 2025
March 2032
Not designated100,000 — 
September 2025(4)
October 2030
Cash flow hedge
200,000 — 
October 2025(3)
December 2030
Cash flow hedge
100,000 — 
October 2025(3)
March 2032
Cash flow hedge
200,000 — 
October 2025(4)
December 2027
Cash flow hedge
1,400,000 — 
Total notional amount$6,850,000 $3,800,000 
___________________
(1)These swaps contain an other-than-insignificant financing element due to their off-market terms at the inception. Prior to March 2020, these swaps were designated as cash flow hedges.
(2)The December 2023 swaps were entered into to offset the excess notional interest rate swaps as a result of the partial redemption of the then outstanding First Lien Term Loan B due 2026 in connection with the Commercial Divestiture. The changes in fair value associated with these swaps and a portion of the October 2019 swaps are reflected in other income (expense).
(3)These swaps were entered into to hedge the interest rate variability on the Company’s First Lien Term Loan B-2 due 2032 or its direct replacement.
(4)These forward-starting swaps were entered into to hedge the interest rate variability on the Company’s First Lien Term Loan B due 2030 or its direct replacement with the swap settlement periods commencing in September 2026.
Classification and Fair Value
December 31,
Balance Sheet Classification (in thousands)
20252024
Prepaid expenses and other current assets$38,264 $56,164 
Other assets3,722 54,102 
Accrued expenses and other current liabilities(1,044)(1,466)
Other liabilities(3,187)(208)
Fair value of interest rate swaps - net asset (liability)$37,755 $108,592 
Unrealized Gains (Losses)

Years Ended December 31,
Statement of Operations Classification (in thousands)
202520242023
Interest expense, net
$(55,984)$(27,164)$(22,174)
Other income (expense)
$(15,461)$(17,996)$(16,511)
Changes in and Reclassifications out of AOCI
(in thousands)
Balance as of December 31, 2022$(45,513)
Pre-tax current period change42,295 
Income tax benefit (expense)(10,166)
Balance as of December 31, 2023(13,384)
Pre-tax current period change7,921 
Income tax benefit (expense)(1,913)
Balance as of December 31, 2024(7,376)
Pre-tax current period change7,323 
Income tax benefit (expense)(1,766)
Balance as of December 31, 2025$(1,819)
During 2023, the Company recorded $25 million to interest expense, net associated with the reclassification from AOCI of historical losses related to the de-designated interest rate swaps for which the cash flows were probable of not occurring as a result of the partial redemption of the Company’s then outstanding First Lien Term Loan B due 2026.
As of December 31, 2025, AOCI associated with previously designated cash flow hedges that is estimated to be reclassified to interest expense, net, within the next twelve months is not material.