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Derivatives

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 10—Derivatives

We are directly and indirectly affected by changes in interest rates, which may adversely impact our financial performance and are referred to as “market risks.” When deemed appropriate, we use derivatives as a risk management tool to mitigate the potential impact of certain market risks. We do not enter into derivative financial instruments for trading purposes.

We pay interest on our Credit Agreement which fluctuates based on changes in our benchmark interest rates. In order to mitigate the risk of increases in benchmark rates on our term loans, we entered into an interest rate swap agreement whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable amounts calculated by reference to the notional amount. The interest rate swaps were designated as cash flow hedges. Cash flows related to the interest rate swap agreement are included in interest expense, net within discontinued operations, refer to Note 3.

We determine the fair value of our interest rate swaps based on observable market-based inputs or unobservable inputs that are corroborated by market data. We do not view the fair value of our derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying exposure. All derivatives are carried at fair value in our condensed consolidated balance sheets. We consider the risk of counterparty default to be minimal. We report cash flows from our hedging instruments in the same cash flow statement category as the hedged items.

The following table summarizes the terms and fair value of our outstanding cash flow hedges as of June 30, 2025:

Notional

Derivative Assets

Derivative Liabilities

Amount

Maturity Date

Classification

Fair Value

Classification

Fair Value

Interest rate swaps

$

250,000

March 2027

Other assets, net

$

2,752

Other liabilities

$

—

The following table summarizes the terms and fair value of our outstanding cash flow hedges as of December 31, 2024:

Notional

Derivative Assets

Derivative Liabilities

Amount

Maturity Date

Classification

Fair Value

Classification

Fair Value

Interest rate swaps

$

300,000

March 2027

Other assets, net

$

6,113

Other liabilities

$

—

The notional amount of the interest rate swaps represents the amount in effect at the end of the period. Based on contractual terms, the notional amount will decrease in increments of $50 million on the last business day of March of each year until the maturity date.

The following table summarizes the effect of cash flow hedge accounting on our condensed consolidated statements of operations for the three and six months ended June 30, 2025:


		Amount of Loss Recognized in Other Comprehensive Income (Loss)								Total Amount of Expense Line Items Presented in the Condensed Consolidated Statement of Operations in Which the Effects are Recorded						Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Net Loss

		Three months ended June 30, 2025			Six months ended June 30, 2025			Location of Gain Reclassified from Accumulated Other Comprehensive Loss into Income		Three months ended June 30, 2025			Six months ended June 30, 2025			Three months ended June 30, 2025			Six months ended June 30, 2025
Interest rate swaps		$	(243)		$	(1,321)		Loss from discontinued operations, net of tax		$	(785,236)		$	(806,408)		$	931		$	2,040

The amount of ineffectiveness associated with these contracts was immaterial for the period presented.

The following table summarizes the effect of cash flow hedge accounting on our condensed consolidated statements of operations for the three and six months ended June 30, 2024:


		Amount of Gain Recognized in Other Comprehensive Income (Loss)								Total Amount of Expense Line Items Presented in the Condensed Consolidated Statement of Operations in Which the Effects are Recorded						Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Net Loss

		Three months ended June 30, 2024			Six months ended June 30, 2024			Location of Gain Reclassified from Accumulated Other Comprehensive Loss into Income		Three months ended June 30, 2024			Six months ended June 30, 2024			Three months ended June 30, 2024			Six months ended June 30, 2024
Interest rate swaps		$	1,599		$	6,156		Loss from discontinued operations, net of tax		$	(25,171)		$	(33,664)		$	1,875		$	4,523

The amount of ineffectiveness associated with these contracts was immaterial for the period presented.