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FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS
Derivatives and Hedging Activity
The Company is exposed to variability in interest payments on its variable-rate Term Loans and from time to time may use derivative financial instruments to manage its exposure to changes in interest rates. The Company does not enter into derivative instruments for speculative purposes.
In May 2026, the Company entered into a pay-fixed, receive-variable interest rate swap with a notional amount of $800.0 million. The swap is designated as a cash flow hedge of the variability in interest payments on a corresponding portion of the Company’s variable-rate Term Loans attributable to changes in one-month Term SOFR. Under the terms of the swap, the Company pays a fixed interest rate of 3.91% and receives one-month Term SOFR, subject to a zero-percent floor. The swap matures in July 2031, consistent with the maturity date of the Term Loans.
Derivatives are recognized as either assets or liabilities and measured at fair value. For a derivative designated and qualifying as a cash flow hedge, changes in fair value are recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the same period in which the hedged transaction affects earnings. Amounts reclassified from accumulated other comprehensive income (loss) and net settlements under the interest rate swap are recognized in “Interest expense, net” in the condensed consolidated statements of operations and comprehensive income (loss).
Fair Value of Derivative Instrument
The following table presents the notional amount, fair value and balance-sheet presentation of the Company’s derivative instrument designated as a cash flow hedge:
Derivative AssetDerivative Liability
Balance Sheet ClassificationNotional AmountJune 30, 2026June 30, 2026
Interest rate swapOther non-current liabilities$800,000 $— $1,168 
The interest rate swap is measured using observable market-based inputs, including interest-rate yield curves, forward interest rates, discount factors and interest-rate volatility. Accordingly, the derivative is classified as a Level 2 fair value measurement. See “Note 10. Fair Value Measurements”, for additional information.
Effect of Cash Flow Hedge
The following table presents the pre-tax effect of the Company’s derivative designated as a cash flow hedge on other comprehensive income (loss) and earnings:
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
Loss recognized in other comprehensive income (loss)$1,168 $1,168 
Loss (gain) reclassified from accumulated other comprehensive income (loss) into interest expense$— $— 
Monthly settlements under the interest rate swap are recognized as a component of interest expense during the period in which the related interest payments affect earnings. The settlements made before June 30, 2026 were excluded from the interest rate swap’s period-end fair value and were not previously recognized in accumulated other comprehensive income (loss). Accordingly, no amounts were reclassified from accumulated other comprehensive income (loss) into earnings during the three or six months ended June 30, 2026.
As of June 30, 2026, the Company expects to reclassify a net gain of approximately $0.4 million from accumulated other comprehensive income (loss) into interest expense during the next 12 months.