Fair Value Measurement |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurement | 9. Fair Value Measurement The carrying values, net of deferred debt issuance costs, and estimated fair values of debt with fixed interest rates (classified as Level 2 in the fair value hierarchy) were as follows:
The fair value of the Company's debt with fixed interest rates is based on quoted market prices. With the exception of debt with fixed interest rates, the carrying amounts of all other debt instruments approximate their fair values. The variable nature and repricing dates of the receivables securitization facilities and the revolving credit facility result in carrying values approximating their fair values. Both the revolving credit facility and the receivables securitization facilities are classified as Level 2 in the fair value hierarchy. Accounts Receivable Monetization Agreements The following table presents a summary of the accounts receivable monetization agreements for the six months ended June 30, 2026 and June 30, 2025:
Receivables sold under these accounts receivable monetization agreements as of the respective balance sheet dates were $636 million and $659 million at June 30, 2026 and December 31, 2025, respectively. Cash proceeds or payments related to the receivables sold are included in “Net cash provided by operating activities” in the Condensed Consolidated Statements of Cash Flows in the “Accounts receivable” line item. The expense related to the sale of receivables for the three months ended June 30, 2026 and 2025 was $7 million and $10 million respectively, and for the six months ended June 30, 2026 and 2025, was $15 million and $20 million, respectively. The expense recorded may vary depending on current rates and levels of receivables sold and is recorded in “Other expense, net” in the Condensed Consolidated Statements of Operations. Although the sales are made without recourse, we maintain continuing involvement with the receivables sold as we provide collections services related to the transferred assets. The associated servicing liability is not material given the high credit quality of the customers underlying the receivables and the anticipated short collection period.
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