v3.26.1
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Company’s population of financial assets and liabilities subject to fair value measurements were as follows:
Fair Value Measurements
Condensed Consolidated Balance Sheets Classification
June 30, 2026
Fair Value atUsing Fair Value Hierarchy
June 30, 2026Level 1Level 2Level 3
Noncontrolling interest putNoncontrolling interest$16.4 $— $16.4 $— 
Cross currency swaps
Other liabilities
$268.8 $— $268.8 $— 
Interest rate swaps
Other liabilities
$56.9 $— $56.9 $— 
Cash surrender value of life insurance policiesOther assets, net$106.8 $— $106.8 $— 
Deferred compensation assetOther assets, net$64.8 $— $64.8 $— 
Deferred compensation liability
Other liabilities
$164.8 $— $164.8 $— 
Contingent considerationAccrued expenses and other/Other liabilities$95.5 $— $— $95.5 
Fair Value Measurements
Condensed Consolidated Balance Sheets Classification
December 31, 2025
Fair Value atUsing Fair Value Hierarchy
December 31, 2025Level 1Level 2Level 3
Noncontrolling interest putNoncontrolling interest$16.9 $— $16.9 $— 
Cross currency swaps
Other liabilities
$274.0 $— $274.0 $— 
Interest rate swaps
Other liabilities
$52.7 $— $52.7 $— 
Cash surrender value of life insurance policiesOther assets, net$99.6 $— $99.6 $— 
Deferred compensation assetOther assets, net$53.1 $— $53.1 $— 
Deferred compensation liability
Other liabilities
$150.5 $— $150.5 $— 
Contingent considerationAccrued expenses and other/Other liabilities$50.0 $— $— $50.0 
Fair Value Measurement of Level 3 Liabilities:Contingent Consideration
Balance at December 31, 2025$50.0 
Additions from business acquisitions, excluding measurement period adjustments89.8 
Cash payments(30.5)
Other adjustments(13.8)
Balance at June 30, 2026$95.5 
(1)
(1)At June 30, 2026, $38.1 and $57.4 of contingent consideration is included within Accrued expenses and other and Other liabilities, respectively, in the Company’s Condensed Consolidated Balance Sheets.
The Company has a noncontrolling interest put option related to its Ontario subsidiary that has been classified as mezzanine equity in the Company’s Condensed Consolidated Balance Sheets. The noncontrolling interest put is valued at its contractually determined value, which approximates fair value.
The fair values of derivative financial instruments have been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment and therefore were classified as Level 2 measurements in the fair value hierarchy.
The Company offers certain employees the opportunity to participate in an employee-funded DCP. A participant’s deferrals are allocated by the participant to one or more of multiple measurement funds, which are indexed to externally managed funds. From time to time, to offset the cost of the growth in the participant’s investment accounts, the Company purchases life insurance policies, with the Company named as beneficiary of the policies. Changes in the cash surrender value of the life insurance policies are based upon earnings and changes in the value of the underlying investments, which are typically invested in a similar manner to the participant’s allocations. Changes in the fair value of the DCP obligation are derived using quoted prices in active markets based on the market price per unit multiplied by the number of units. The cash surrender value and the DCP obligations are classified within Level 2 because their inputs are derived principally from observable market data by correlation to the hypothetical investments.
The Company measured the fair value of contingent consideration liabilities as Level 3 instruments. These contingent consideration liabilities were recorded at fair value on the acquisition date and are remeasured quarterly based on the then
assessed fair value and adjusted, if necessary. The increases or decreases in the fair value of contingent consideration payable primarily result from changes in the anticipated achievement of specified future performance targets of the acquired businesses. As the fair value measure is based on significant inputs that are not observable in the market, they are categorized as Level 3.
The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable are considered to be representative of their respective fair values due to their short-term nature. Although recorded at amortized cost on the Company’s Condensed Consolidated Balance Sheets, the fair market value of the Company’s senior notes was $4,425.3 and $4,963.6 at June 30, 2026, and December 31, 2025, respectively. At June 30, 2026, the carrying value of the Company’s 2026 Term Loan, also recorded at amortized cost, was estimated to approximate fair value primarily due to its variable interest rate. The Company’s senior notes and 2026 Term Loan are considered Level 2 instruments, as the fair market values of these instruments are based on observable market pricing/inputs.
Interest Rate Swaps
The Company is party to fixed-to-variable interest rate swap agreements for its 2.70% senior notes due 2031 with an aggregate notional amount of $500.0 and variable interest rates currently based on the compounded SOFR, plus 1.33%.
Interest rate swap agreements, which have been used by the Company from time to time in the management of interest rate exposure, are accounted for at fair value. These derivative financial instruments are accounted for as fair value hedges that increase or decrease the value of the Company’s senior notes with the offset being recorded as a component of other long-term assets or liabilities, as applicable. As the specific terms and notional amounts of the derivative financial instruments match those of the fixed-rate debt being hedged, the derivative instruments are assumed to be perfectly effective hedges and accordingly, there is no impact to the Company’s Condensed Consolidated Statements of Operations.
Cross Currency Swaps
The Company is party to various USD to Swiss Franc cross-currency swap agreements with an aggregate notional amount of $1,200.0, with $300.0 maturing in 2029, $300.0 maturing in 2031, and $600.0 maturing in 2034.
The above instruments are designated as a hedge against the impact of foreign exchange movements on its net investment in a Swiss subsidiary. Changes in the fair value of the cross-currency swaps are charged or credited through Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheet until the hedged item is recognized in earnings. The cumulative amount of the fair value hedging adjustments is recognized as currency translation within the Condensed Consolidated Statement of Comprehensive Earnings.
The table below provides information regarding the location and amount of pretax (losses) gains of derivatives designated in fair value hedging relationships:
Amounts Included In Other Comprehensive Loss
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cross currency swaps$— $(155.3)$5.2 $(148.3)