v3.26.1
Fair Value Measurements and Disclosures
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures
The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis (in thousands):
Balance Sheet ClassificationCarrying ValueLevel 1Level 2Level 3
June 30, 2026
Available-for-sale fixed-maturity securities
Commercial paperInvestment securities$84,108 $— $84,108 $— 
Corporate notesInvestment securities$10,126 $— $10,126 $— 
U.S. treasury billsInvestment securities$23,544 $— $23,544 $— 
U.S. government agenciesInvestment securities$61,176 $— $61,176 $— 
Money market fundsCash and cash equivalents$3,015 $3,015 $— $— 
Other financial assets:
Interest rate swapsOther current assets$1,909 $— $1,909 $— 
December 31, 2025
Available-for-sale fixed-maturity securities
Commercial paperInvestment securities$12,435 $— $12,435 $— 
U.S. treasury billsInvestment securities$7,460 $— $7,460 $— 
U.S. government agenciesInvestment securities$4,982 $— $4,982 $— 
Money market fundsCash and cash equivalents$25,292 $25,292 $— $— 
Other financial assets:
Interest rate capOther current assets$274 $— $274 $— 
Other financial liabilities:
Interest rate swapsOther accrued expenses$621 $— $621 $— 
Interest rate swapsOther long-term liabilities$414 $— $414 $— 
The fair values of our interest rate swaps and cap are based on the sum of all future net present value cash flows. The future cash flows are derived based on the terms of our interest rate swaps and cap, as well as considering published discount factors, and projected SOFR curve. The fair value of long-term debt was a Level 2 instrument, the fair value of which was determined using the present value of future cash flows based on the borrowing rates currently available for debt with similar terms and maturities. The carrying value of our First Lien Credit Facility was $1,374.1 million and $1,401.2 million compared to a fair value of $1,369.0 million and $1,408.3 million at June 30, 2026 and December 31, 2025, respectively. The carrying value of our Receivables Facility approximated fair value at June 30, 2026 and December 31, 2025. There were no transfers in or out of Level 3 during the periods presented.
As of June 30, 2026 and December 31, 2025, the carrying value of cash equivalents, accounts receivable, accounts payable, accrued liabilities, and other current assets and liabilities approximates fair value due to the short maturities of these instruments. Interest rate swaps are Level 2 instruments whose fair value is derived from discounted cash flows adjusted for nonperformance risk. Investment securities are Level 2 instruments whose fair value is observed through market data of similar securities. Money market funds are Level 1 instruments whose fair value is observed through daily quoted prices of similar assets. Money market funds are considered cash equivalents because they have a maturity of less than three months and are highly liquid.