Derivatives

6 Months Ended

Jun. 30, 2025

Deal-Contingent Foreign Currency Forward

In December 2023, the Company entered into the deal-contingent foreign currency forward (the “Deal-Contingent

Forward”) to manage the risk of appreciation of the GBP-denominated purchase price of the acquisition of Castel. The

Deal-Contingent Forward had a 200.0 million GBP notional amount and was executed when the Castel acquisition closed

on May 1, 2024. As the Deal-Contingent Forward was an economic hedge and had not been designated as an accounting

hedge, losses resulting from the Deal-Contingent Forward were recognized through earnings in the periods incurred.

Interest Rate Cap

In April 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 has a $1,000.0 million notional

amount, 2.75% strike, and terminates on December 31, 2025. At inception, the Company formally designated the interest

rate cap as a cash flow hedge. As of June 30, 2025, the interest rate cap continued to be an effective hedge.

Decreases in the fair value of the interest rate cap of $2.8 million and $3.9 million for the three months ended June 30,

2025 and 2024, respectively, and $6.9 million and $0.1 million for the six months ended June 30, 2025 and 2024,

respectively, were recognized in other comprehensive income (loss) (“OCI”). As of June 30, 2025, the Company expects

$7.0 million of unrealized gains from the interest rate cap to be reclassified into earnings over the next six months through

the instrument’s expiration date. See Note 15, Income Taxes, for further information on the tax effects on other

comprehensive income related to the interest rate cap.

The location and gains (losses) on derivatives are reported in the Consolidated Statements of Income as follows:


		Three Months Ended June 30,		Six Months Ended June 30,
	Income Statement Caption	2025	2024	2025	2024
Change in the fair value of the Deal-Contingent Forward	General and administrative	$—	$(2,050)	$—	$(4,532)
Total impact of derivatives not designated as hedging instruments		$—	$(2,050)	$—	$(4,532)

Interest rate cap premium amortization	Interest expense, net	$(1,739)	$(1,739)	$(3,477)	$(3,477)
Amounts reclassified out of other comprehensive income related to the interest rate cap	Interest expense, net	3,980	6,507	7,933	13,051
Total impact of derivatives designated as hedging instruments		$2,241	$4,768	$4,456	$9,574

The location and fair value of derivatives designated as hedging instruments are reported on the Consolidated Balance

Sheets as follows:

See Note 12, Fair Value Measurements, for further information on the fair value of derivatives.