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Derivatives and Hedging Activities | 12 Months Ended
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Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. We manage exposure to a wide variety of business and operational risks through our core business activities. We manage economic risks, including interest rate, liquidity and credit risk primarily by overseeing the amount, sources and duration of debt funding and the use of derivative financial instruments. Specifically, we have entered into derivative financial instruments to manage exposure to interest rate movements that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing and duration of our known or expected cash receipts and known or expected cash payments principally related to our investments and borrowings. Cash Flow Hedges of Interest Rate Risk Our purpose for using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. During the year ended December 31, 2025, we used interest rate swaps to hedge the variable cash flows associated with existing variable-rate debt. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We do not use derivatives for trading or speculative purposes and we currently do not have any derivatives that are not designated as hedges. As of December 31, 2025, we have not posted any collateral related to these agreements. As of December 31, 2025 and December 31, 2024, we had the following interest rate swap derivatives (notional amount in millions):
Effective Date |  | Notional Amount |  | Fixed Rate |  | Maturity Date
April 28, 2023 |  | $ | 200.0 |  |  | 0.46 | % |  | December 31, 2025
April 28, 2023 |  | 100.0 |  |  | 1.32 | % |  | December 31, 2025
April 28, 2023 |  | 100.0 |  |  | 1.32 | % |  | December 31, 2025
December 31, 2025 |  | 300.0 |  |  | 3.06 | % |  | December 14, 2028
December 31, 2025 |  | 100.0 |  |  | 2.93 | % |  | December 14, 2028
As of December 31, 2025, we have two active interest rate swaps that serve to hedge $400.0 million of the variable cash flows on our variable rate Term Loan through December 14, 2028. The assets associated with these interest rate swaps are included in other current assets and other non-current assets on the Consolidated Balance Sheets at their fair value amounts as described in Note 10, Fair Value Measurements. We previously amended the maturity dates on all three of our matured interest rate swaps and the related remaining unrealized gains will be amortized as a decrease to interest expense, net through the original maturity dates of April 15, 2030 and December 15, 2028. For the each of the years ended December 31, 2025, 2024 and 2023, we amortized $7.1 million of the unrealized gains as a decrease to interest expense, net. These matured swaps included off-market terms at inception. The other-than-insignificant financing element was amortized as an increase to interest expense, net through the December 31, 2025 maturity date of the matured swaps. For each of the years ended December 31, 2025, 2024 and 2023, we amortized $7.4 million of the financing element as an increase to interest expense, net. During the years ended December 31, 2025, 2024 and 2023, we also amortized $1.2 million, $4.1 million and $4.1 million, respectively, of the remaining unrealized losses associated with the August 2020 terminated swaps as an increase to interest expense, net. All remaining unrealized losses were fully amortized as of April 2025. The changes in the fair value of derivatives designated, and that qualify, as cash flow hedges are recorded in other comprehensive (loss) income, net of tax on the Consolidated Statements of Operations and Comprehensive Income and in accumulated other comprehensive income on the Consolidated Balance Sheets and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. We had no such changes during the years ended December 31, 2025 and 2024. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense, net as interest payments are made on our variable-rate debt, and as our amended matured swaps are amortized. Over the next twelve months, we estimate that an additional $8.5 million will be reclassified as a decrease to interest expense, net. The following table summarizes amounts recorded to interest expense, net included in the Condensed Consolidated Statements of Operations and Comprehensive Income related to our interest rate swaps (in millions):
|  | As of December 31,
|  | 2025 |  | 2024 |  | 2023
(Benefit) associated with swap net settlements |  | $ | (13.6) |  |  | $ | (17.4) |  |  | $ | (16.7) |
Expense associated with amortization of amended/terminated swaps |  | 1.5 |  |  | 4.4 |  |  | 4.5 |
The year over year changes from December 31, 2024 to December 31, 2025 above were a result of lower market interest rates which reduced the benefit received from swap counterparties as well as the unrealized losses of our August 2020 swaps becoming fully amortized in April 2025.

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