v3.26.1
Derivatives
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
Interest Rate Swaps: The Company has multiple interest rate swap agreements designated as cash flow hedges. The Company utilizes these interest rate swap agreements to reduce exposure to fluctuations in variable interest rates for future interest payments on its term loan. The total notional amount is $785.0 million as of March 31, 2026 and December 31, 2025. Failure of the interest rate swap counterparties to make payments may result in the loss of any potential benefit to the Company under the interest rate swap agreements. The Company mitigates risk of non-performance by counterparties by dealing with highly rated counterparties. The Company does not use financial instruments for trading or speculative purposes. Additional information regarding the fair value of the Company’s interest rate swaps can be found in “Note 8—Fair Value Measurements”.
The fair value of derivative instruments is presented on the Condensed Consolidated Balance Sheets, as follows (in thousands):
Balance Sheet LocationMarch 31, 2026December 31, 2025
Derivatives designated as hedging instruments
Interest rate swap asset (short-term)Prepaid expenses and other current assets$1,671 $42 
Interest rate swap asset (long-term)Other assets$922 $— 
Interest rate swap liability (short-term)Accrued and other current liabilities$328 $886 
Interest rate swap liability (long-term)Other long-term liabilities$307 $308 
The following table presents the gross changes in Accumulated Other Comprehensive Income (“AOCI”) from the Company’s cash flow hedges (in thousands):
Three Months Ended March 31,
20262025
Beginning balance$(698)$9,111 
Unrealized gain (loss) recognized in AOCI3,483(3,398)
Gain reclassified from AOCI to Interest expense(373)(2,816)
Other comprehensive income (loss)3,110 (6,214)
Other comprehensive income attributable to noncontrolling interests1,191 — 
Ending balance$1,221 $2,897 
For the three months ended March 31, 2026 and 2025, there was no ineffectiveness recognized in earnings.
The following table provides additional details related to the interest rate swap agreements, as amended, that were in effect as of March 31, 2026 (notional in thousands):
Effective Date (1)
Maturity Date
Notional Amount (2)
Fixed Interest Rate (3)
February 28, 2023December 31, 2026$337,5003.4396%
February 28, 2023December 31, 2026$337,5003.3750%
January 31, 2024December 31, 2026$110,0004.0433%
December 31, 2026December 31, 2027$200,0003.2480%
December 31, 2026December 31, 2027$200,0003.2480%
December 31, 2026December 31, 2028$100,0003.4581%
December 31, 2026December 31, 2028$100,0003.6995%
(1)The interest rate swaps with effective dates of December 31, 2026 were added in July 2025 and March 2026 are not included in the notional amount as of March 31, 2026.
(2)For the interest rate swap with a notional amount of $110,000, the notional amount was $140,000 from January 31, 2024 to September 14, 2025, and was reduced to $110,000 on September 15, 2025 in connection with a debt prepayment on that date.
(3)Payments will be made to the Company if the one-month SOFR exceeds the fixed interest rates for the respective interest rate swaps.
The following table provides additional details related to the interest rate swap agreements, as amended, that were in effect as of December 31, 2025 (notional in thousands):
Effective Date (1)
Maturity Date
Notional Amount (2)
Fixed Interest Rate (3)
February 28, 2023December 31, 2026$337,5003.4396%
February 28, 2023December 31, 2026$337,5003.3750%
January 31, 2024December 31, 2026
$110,000 —$140,000
4.0433%
December 31, 2026December 31, 2027$200,0003.2480%
December 31, 2026December 31, 2027$200,0003.2480%
(1)The interest rate swaps with effective dates of December 31, 2026 were added during July 2025 and are not included in the notional amount as of December 31, 2025.
(2)For interest rate swaps with ranges, the notional amount is $140,000 from January 31, 2024 to September 14, 2025 and $110,000 from September 15, 2025 to December 31, 2026, due to a $30,000 reduction in notional amount in connection with a debt prepayment on September 15, 2025.
(3)Payments will be made to the Company if the one-month SOFR exceeds the fixed interest rates for the respective interest rate swaps.