Derivatives

6 Months Ended

Jun. 30, 2026

Interest Rate Cap

In 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 had a $1,000.0 million notional amount,

2.75% strike, and terminated on December 31, 2025. At inception, the Company formally designated the interest rate cap

as a cash flow hedge, which remained effective through the instrument’s termination date.

For the three and six months ended June 30, 2025, the decreases of $2.8 million and $6.9 million, respectively, in the fair

value of the interest rate cap was recognized in OCI. See Note 16, Income Taxes, for further information on the tax effects

on OCI related to the interest rate cap. The location and gains (losses) related to the interest rate cap were recognized on the

Consolidated Statements of Income as follows:


	Income Statement Caption	Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
Interest rate cap premium amortization	Interest expense, net	$(1,739)	$(3,477)
Amounts reclassified out of other comprehensive income related to the interest rate cap	Interest expense, net	3,980	7,933
Total impact of derivatives designated as hedging instruments		$2,241	$4,456

See Note 13, Fair Value Measurements, for information on the fair value of the interest rate cap.