v3.26.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The Company’s interest rate swaps consist of the following (notional amounts in thousands):
ExecutionMaturityDesignationJune 30, 2026December 31, 2025
October 2019(1)(2)
September 2026Not designated$2,800,000 $2,800,000 
March 2023March 2028Not designated100,000 100,000 
April 2023March 2028Not designated200,000 200,000 
December 2023(2)
September 2026Not designated700,000 700,000 
June 2025(3)
March 2032
Cash flow hedge
550,000 550,000 
July 2025(3)
March 2032
Cash flow hedge
500,000 500,000 
July 2025
March 2032
Not designated100,000 100,000 
September 2025(4)
October 2030
Cash flow hedge
200,000 200,000 
October 2025(3)
December 2030
Cash flow hedge
100,000 100,000 
October 2025(3)
March 2032
Cash flow hedge
200,000 200,000 
October 2025(4)
December 2027
Cash flow hedge
1,400,000 1,400,000 
Total notional amount$6,850,000 $6,850,000 
___________________
(1)These swaps contain an other-than-insignificant financing element due to their off-market terms at inception. Prior to March 2020, these swaps were designated as cash flow hedges.
(2)The December 2023 swaps were entered into to offset the excess notional interest rate swaps as a result of the partial redemption of the then outstanding First Lien Term Loan B due 2026 in connection with the Commercial Divestiture. The changes in fair value associated with these swaps and a portion of the October 2019 swaps are reflected in other income (expense).
(3)These swaps were entered into to hedge the interest rate variability on the Company’s First Lien Term Loan B-2 due 2032 or its direct replacement.
(4)These forward-starting swaps were entered into to hedge the interest rate variability on the Company’s First Lien Term Loan B due 2030 or its direct replacement with the swap settlement periods commencing in September 2026.
Schedule of Derivative Liabilities at Fair Value
Balance Sheet Classification (in thousands)
June 30, 2026December 31, 2025
Prepaid expenses and other current assets$32,131 $38,264 
Other assets31,079 3,722 
Accrued expenses and other current liabilities— (1,044)
Other liabilities— (3,187)
Fair value of interest rate swaps - net asset (liability)$63,210 $37,755 
Schedule of Unrealized Gain (Loss) on Interest Rate Swaps
Unrealized gains (losses) on the Company’s derivatives not classified as cash flow hedges that were recognized in the Statements of Operations were as follows:
Three Months Ended June 30,Six Months Ended June 30,
Classification (in thousands)
2026202520262025
Interest expense, net$(5,743)$(13,022)$(9,588)$(34,031)
Other income (expense)$(3,862)$(3,813)$(7,571)$(7,845)
Reclassification out of Accumulated Other Comprehensive Income
The following table reflects unrealized gains (losses) on interest rate swaps designated as cash flow hedges, as well as reclassifications related to previously designated cash flow hedges, which are not material:
Three Months Ended June 30,Six Months Ended June 30,
Changes in AOCI (in thousands)
2026202520262025
Pre-tax current period change
$26,710 $(1,591)$45,629 $195 
Income tax (benefit) expense$(6,435)$384 $(10,992)$(48)