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Fair Value Measurements and Derivative Instruments | 12 Months Ended
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Dec. 31, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. An entity is required to classify certain assets and liabilities measured at fair value based on the following fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3– Unobservable inputs that are supported by little or no market activity, may be derived from internally developed methodologies based on management's best estimate of fair value and that are significant to the fair value of the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy. The fair value table as of December 31, 2024 has been revised to exclude certain interest-bearing savings accounts that were previously reported within the money market funds line item that should not have been included in the fair value table based on the nature of these deposits, and to correct for certain other leveling disclosure errors. Additionally, the Held-to-Maturities Securities disclosure as of December 31, 2024 has been revised to exclude certain short-term savings products that do not meet the definition of securities and the investments in a loss position has been revised to correct for classification errors between the greater than 12 months and less than 12 months disclosure. These revisions impact our footnote disclosure only and had no impact on our consolidated financial statements for any interim or annual periods. The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis.
| December 31, 2025
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Money market funds | $ | 47,239 |  |  | $ | — |  |  | $ | — |  |  | $ | 47,239 |
Mutual funds | 11,852 |  |  | — |  |  | — |  |  | 11,852 |
Government securities | 120 |  |  | 13,366 |  |  | — |  |  | 13,486 |
Corporate debt securities | — |  |  | 43,895 |  |  | — |  |  | 43,895 |
Mortgage-backed securities | — |  |  | 89,002 |  |  | — |  |  | 89,002 |
Asset-backed securities | — |  |  | 20,203 |  |  | — |  |  | 20,203 |
Total assets | $ | 59,211 |  |  | $ | 166,466 |  |  | $ | — |  |  | $ | 225,677 |
Liabilities: |  |  |  |  |  |  |
Deferred compensation obligations | $ | — |  |  | $ | 13,741 |  |  | $ | — |  |  | $ | 13,741 |
Total liabilities | $ | — |  |  | $ | 13,741 |  |  | $ | — |  |  | $ | 13,741 |
| December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Money market funds | $ | 65,251 |  |  | $ | — |  |  | $ | — |  |  | $ | 65,251 |
Mutual funds | 14,664 |  |  | — |  |  | — |  |  | 14,664 |
Government securities | 2,334 |  |  | 13,410 |  |  | — |  |  | 15,744 |
Corporate debt securities | — |  |  | 42,159 |  |  | — |  |  | 42,159 |
Mortgage-backed securities | — |  |  | 90,628 |  |  | — |  |  | 90,628 |
Asset-backed securities | — |  |  | 7,836 |  |  | — |  |  | 7,836 |
Total assets | $ | 82,249 |  |  | $ | 154,033 |  |  | $ | — |  |  | $ | 236,282 |
Liabilities: |  |  |  |  |  |  |
Deferred compensation obligations | $ | — |  |  | $ | 16,309 |  |  | $ | — |  |  | $ | 16,309 |
Total liabilities | $ | — |  |  | $ | 16,309 |  |  | $ | — |  |  | $ | 16,309 |
The valuation of investment securities is based on a market approach using inputs that are observable, or can be corroborated by observable data, in an active marketplace. The following information relates to our classification within the fair value hierarchy: Assets •Money Market Funds: Money market funds typically invest in securities issued by the U.S. government and its agencies and other highly liquid, low risk securities. The fair value of money market funds is based on the net asset value as reported daily by the underlying money market fund and serves as the basis for subscriptions and redemptions. Accordingly, money market funds are classified as Level 1. •Mutual Funds: Comprised of mutual funds investing in equity securities of U.S. and foreign companies and a variety of fixed income securities. Mutual fund investments are primarily held in our deferred compensation plan (see Deferred Compensation Obligation below). The fair value of mutual funds is based on the net asset value as reported daily by the underlying mutual fund and serves as the basis for subscriptions and redemptions. Accordingly, mutual funds are classified as Level 1. •Government Securities: Government securities consist primarily of municipal bonds and U.S. agency securities. Government securities are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when fair value is determined using quoted market prices for similar securities or benchmarking models which derive prices based on observable transactions for comparable securities. •Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads for the same maturity as the security. Accordingly, these securities are classified as Level 2. •Mortgage-Backed Securities: C omprised of residential and commercial mortgage-backed securities issued by FHLMC (Federal Home Loan Mortgage Corporation; Freddie Mac), FNMA (Federal National Mortgage Association; Fannie Mae), GNMA (Governmental National Mortgage Association, also known as Ginnie Mae), and FHA (Federal Housing Administration). Fair value for these securities is determined based on prices of comparable securities, external pricing indices or external price/spread data. Accordingly, these securities are classified as Level 2. •Asset-Backed Securities: Asset-backed securities are classified as Level 2 as fair value for these securities is determined based on prices of comparable securities, external pricing indices or external price/spread data. Liabilities •Deferred Compensation Obligation: we offer certain eligible employees the option to defer a portion of their variable compensation and invest this deferred compensation among a variety of investment options. The deferred compensation obligation represents the aggregate value of the participants' accounts at the end of the reporting period. The fair value of the deferred compensation obligation is determined based on the underlying asset values and is classified as Level 2. The deferred compensation obligation is reported in Accounts payable and accrued liabilities on our Consolidated Balance Sheet. Available-For-Sale Securities Available-for-sale securities consisted of the following:
| December 31, 2025
| Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Estimated fair value
Mutual funds | $ | 1,886 |  |  | $ | — |  |  | $ | (171) |  |  | $ | 1,715 |
Government securities | 19,043 |  |  | — |  |  | (5,557) |  |  | 13,486 |
Corporate debt securities | 49,481 |  |  | — |  |  | (5,586) |  |  | 43,895 |
Mortgage-backed securities | 107,652 |  |  | — |  |  | (18,650) |  |  | 89,002 |
Asset-backed securities | 19,947 |  |  | 256 |  |  | — |  |  | 20,203 |
Total | $ | 198,009 |  |  | $ | 256 |  |  | $ | (29,964) |  |  | $ | 168,301 |
| December 31, 2024
| Amortized cost |  |  |  | Gross unrealized losses |  | Estimated fair value
Mutual funds | $ | 1,835 |  |  |  |  | $ | (223) |  |  | $ | 1,612 |
Government securities | 21,432 |  |  |  |  | (5,688) |  |  | 15,744 |
Corporate debt securities | 50,367 |  |  |  |  | (8,208) |  |  | 42,159 |
Mortgage-backed securities | 114,941 |  |  |  |  | (24,313) |  |  | 90,628 |
Asset-backed securities | 8,348 |  |  |  |  | (512) |  |  | 7,836 |
Total | $ | 196,923 |  |  |  |  | $ | (38,944) |  |  | $ | 157,979 |
The fair value of available-for-sale securities is reported on our Consolidated Balance Sheet as follows:
|  |  |  |  | December 31, 2025 |  | December 31, 2024
Short-term investments |  |  |  |  | $ | 1,715 |  |  | $ | 3,926 |
Other assets |  |  |  |  | 166,586 |  |  | 154,053 |
Total |  |  |  |  | $ | 168,301 |  |  | $ | 157,979 |
Investment securities in a loss position were as follows:
| December 31, 2025 |  | December 31, 2024
| Fair Value |  | Gross unrealized losses |  | Fair Value |  | Gross unrealized losses
Greater than 12 continuous months |  |  |  |  |  |  |
Mutual funds | $ | 1,715 |  |  | $ | 171 |  |  | $ | 1,612 |  |  | $ | 223 |
Government securities | 13,486 |  |  | 5,557 |  |  | 15,744 |  |  | 5,688 |
Corporate debt securities | 43,895 |  |  | 5,586 |  |  | 42,159 |  |  | 8,208 |
Mortgage-backed securities | 89,002 |  |  | 18,650 |  |  | 90,628 |  |  | 24,313 |
Asset-backed securities | — |  |  | — |  |  | 7,836 |  |  | 512 |
Total | $ | 148,098 |  |  | $ | 29,964 |  |  | $ | 157,979 |  |  | $ | 38,944 |
At December 31, 2025, substantially all securities in the investment portfolio were in an unrealized loss position. However, we have not recorded an allowance for credit loss or an impairment charge as we have the ability and intent to hold these securities until recovery of the unrealized losses and expect to receive the stated principal and interest at maturity. At December 31, 2025, scheduled maturities of available-for-sale securities were as follows:
| Amortized cost |  | Estimated fair value
Within 1 year | $ | 1,886 |  |  | $ | 1,715 |
After 1 year through 5 years | 25,093 |  |  | 23,036 |
After 5 years through 10 years | 41,482 |  |  | 39,405 |
After 10 years | 129,548 |  |  | 104,145 |
Total | $ | 198,009 |  |  | $ | 168,301 |
The actual maturities may not coincide with scheduled maturities as certain securities contain early redemption features and/or allow for the prepayment of obligations with or without penalty. Held-to-Maturity Securities The carrying value and fair value of investments classified as held-to-maturity is as follows:
|  | December 31, 2025 |  | December 31, 2024
|  | Carrying value |  | Fair value |  | Carrying value |  | Fair value
Government securities |  | $ | 19,865 |  |  | $ | 19,787 |  |  | $ | 20,308 |  |  | $ | 20,219 |
Other |  | 4,408 |  |  | 4,134 |  |  | 2,480 |  |  | 2,242 |
Total |  | $ | 24,273 |  |  | $ | 23,921 |  |  | $ | 22,788 |  |  | $ | 22,461 |
The carrying value of held-to-maturity securities is reported on our Consolidated Balance Sheet as follows:
|  |  |  |  | December 31, 2025 |  | December 31, 2024
Short-term investments |  |  |  |  | $ | 10,522 |  |  | $ | 12,448 |
Other assets |  |  |  |  | 13,751 |  |  | 10,340 |
Total |  |  |  |  | $ | 24,273 |  |  | $ | 22,788 |
Scheduled maturities of held-to-maturity securities at December 31, 2025 were as follows:
| Carrying value |  | Fair value
Within 1 year | $ | 10,522 |  |  | $ | 10,490 |
After 1 year through 5 years | 7,633 |  |  | 7,589 |
After 10 years | 6,118 |  |  | 5,842 |
Total | $ | 24,273 |  |  | $ | 23,921 |
Simple Agreement for Future Equity (SAFE) Investment We had invested $10 million in a robotics solutions company, via a SAFE arrangement, which provided us the right to participate in future equity offerings. Due to the loss of a significant customer of the robotics solutions company, in the third quarter of 2024 we determined the investment was impaired and recorded a $10 million impairment charge. Derivative Instruments We did not enter into any derivative instruments during 2025. During 2024, we had interest rate swap agreements that effectively converted $200 million of variable rate debt to fixed rates. These swaps were designated as cash flow hedges. The swaps were recorded at fair value at the end of each reporting period with the change in fair value reflected in AOCL. For the twelve months ended December 31, 2024, the amount recognized in AOCL was a loss of $8 million and the amount reclassified from AOCL to earnings was a gain of $10 million. These swap agreements matured on December 31, 2024.
Fair Value of Financial Instruments Our financial instruments include cash equivalents, accounts receivables, finance receivables, accounts payable and debt. The carrying values of cash equivalents, accounts receivables, finance receivables and accounts payable approximate fair value. The inputs used to estimate fair value of cash equivalents, accounts receivables, finance receivables and accounts payable were Level 2. The inputs used to estimate the fair value of debt were Level 2 and included recently executed transactions and market price quotations.
| December 31,
| 2025 |  | 2024
Carrying value | $ | 1,993,038 |  |  | $ | 1,919,708 |
Fair value | $ | 1,954,304 |  |  | $ | 1,823,430 |

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- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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