v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
ASC Topic 820, “Fair Value Measurements and Disclosures,” establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy are described below:
•Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals.
•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions, as there is little, if any, related market activity.
The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy. The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate. The fair value of the Company’s trade accounts receivable and payable approximates the carrying amounts.
Long-Term Debt
On March 16, 2026, the Company issued $600.0 million of unsecured notes due 2031 at an interest rate of 6.75%. Additionally, in May 2026, the Company repaid the remaining $106.7 million principal balance of the Convertible Notes. See Note 5, “Long-Term Debt” for more information.
The fair value of our Amended Credit Facilities, 5.625% Notes, 4.125% Notes, 6.75% Notes, and the Convertible Notes is estimated based on quoted prices in active markets. Due to their trading frequency, these long-term debt instruments are classified as Level 2 measurements.
Indemnification Liability
As of June 30, 2026 and December 31, 2025, other liabilities include a tax indemnification balance of $38.7 million and $39.5 million, respectively, as described in Note 9, “Commitments and Contingencies.” Liabilities associated with the indemnification are recorded in “Other long-term liabilities” within the unaudited Consolidated Balance Sheets. The indemnity has been classified as a Level 3 measurement. Key assumptions used to estimate the fair value of the indemnification include the expected tax rate and the probability of potential outcomes based on valuation methods that utilize unobservable inputs that are significant to the overall fair value as of June 30, 2026 and December 31, 2025.
Available-for-Sale Debt Securities
The Company acquired 12.0% secured convertible notes in a third-party technology provider on April 7, 2023 for $20.0 million, due on the third-year anniversary of the date of issuance. On February 2, 2026, the Company amended the terms of the convertible notes to extend the maturity date to March 2029. As of both periods ended June 30, 2026 and December 31, 2025, the balance of the convertible notes was $26.4 million, which is reported in “Other assets” in our unaudited Consolidated Balance Sheets. The fair value of the convertible notes was determined using valuation models that utilize Level 3 measurements.
The carrying amounts and estimated fair values by input level of the Company’s financial instruments were as follows:
June 30, 2026
(in millions)Carrying AmountFair ValueLevel 1Level 2Level 3
Financial assets:
Cash and cash equivalents$887.2 $887.2 $887.2 $— $— 
Available-for-sale debt securities$26.4 $26.4 $— $— $26.4 
Held-to-maturity securities$6.7 $6.7 $— $6.7 $— 
Promissory notes$7.9 $7.9 $— $7.9 $— 
Financial liabilities:
Long-term debt
Amended Credit Facilities$1,379.8 $1,394.9 $— $1,394.9 $— 
5.625% Notes
$399.9 $399.5 $— $399.5 $— 
4.125% Notes
$396.9 $382.0 $— $382.0 $— 
6.75% Notes
$590.2 $601.5 $— $601.5 $— 
Other long-term obligations$7.8 $6.8 $— $6.8 $— 
Other liabilities$41.9 $41.9 $— $2.7 $39.2 
December 31, 2025
(in millions)Carrying AmountFair ValueLevel 1Level 2Level 3
Financial assets:
Cash and cash equivalents$686.6 $686.6 $686.6 $— $— 
Available-for-sale debt securities$26.4 $26.4 $— $— $26.4 
Held-to-maturity securities$6.7 $6.7 $— $6.7 $— 
Promissory notes$7.9 $7.9 $— $7.9 $— 
Financial liabilities:
Long-term debt
Amended Credit Facilities$1,975.8 $1,993.0 $— $1,993.0 $— 
5.625% Notes
$399.8 $399.0 $— $399.0 $— 
4.125% Notes
$396.4 $368.0 $— $368.0 $— 
Convertible Notes$106.5 $105.6 $— $105.6 $— 
Other long-term obligations$8.6 $7.3 $— $7.3 $— 
Other liabilities$42.8 $42.8 $— $2.7 $40.1 
The following table summarizes the significant unobservable inputs used in calculating fair value for our Level 3 assets and liabilities on a recurring basis as of June 30, 2026:
Valuation TechniqueUnobservable InputDiscount Rate
Available-for-sale debt securitiesDiscounted cash flowDiscount rate32.5 %