v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair Value Hierarchy
ASC 820, Fair Value Measurements states that fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The following three-tier fair value hierarchy has been used in determining the inputs used in measuring fair value:
•Level 1 — Unadjusted quoted prices in active markets. These are generally obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities on the reporting date.
•Level 2 — Quoted prices for similar assets and liabilities in active markets. These are typically quoted prices for identical or similar instruments in markets that are not active, and model-derived valuation in which all significant inputs are observable in active markets.
•Level 3 — Unobservable inputs in which there is little or no market data, that are significant to the fair value of the assets or liabilities, which require the entity to develop its own assumptions.
Financial instruments
The carrying value of cash and cash equivalents, trade accounts receivable, net, unbilled Independent Dispute Resolutions fee, net, other current assets, net, accounts payable, accrued interest, accrued taxes, accrued compensation and other accrued expenses, approximate their fair value due to their relatively short maturities.
The financial instrument that could potentially subject the Company to concentration of credit risk consists primarily of trade accounts receivable, net.
Cash and cash equivalents as of June 30, 2026 and December 31, 2025 did not include money market funds.
The Company's carrying amount and fair value of long-term debt consisted of the following (in thousands):
June 30, 2026December 31, 2025
Carrying
Amount		Fair ValueCarrying
Amount		Fair Value
Long-term Debt:
5.50% Notes
$5,814 $3,954 $5,814 $4,595 
5.750% Notes
5,310 3,255 5,310 3,318 
Senior Convertible PIK Notes, net of discount420 255 420 285 
First-Out First Lien Term Loans320,985 321,113 322,611 323,837 
Second-Out First Lien Term Loans1,129,637 989,336 1,135,357 1,070,755 
Second-Out First Lien A Notes643,698 637,325 627,998 666,180 
Second-Out First Lien B Notes763,075 638,999 763,075 673,795 
Third-Out First Lien A Notes772,632 458,943 765,520 661,180 
Third-Out First Lien B Notes995,288 598,666 986,126 811,187 
Finance lease obligations144 144 183 183 
Total Long-term Debt4,637,003 3,651,990 4,612,414 4,215,315 
Less: debt discounts, net(17,142)(17,142)(18,717)(18,717)
Total Long-term debt, net of discount$4,619,861 $3,634,848 $4,593,697 $4,196,598 
We estimate the fair value of long-term debt using Level 2 inputs as they are not registered securities nor listed on any securities exchange but may be traded by qualified institutional buyers.
Recurring fair value measurements
The Company records interest rate swap on the condensed consolidated balance sheets at fair value, which represents the estimated amounts it would receive or pay upon termination of the derivative prior to the scheduled expiration date. The fair value is derived from model-driven information based on observable Level 2 inputs, such as SOFR forward rates.
The Company records cRSUs on the consolidated balance sheets at fair value, which represents the estimated amount it would pay upon vesting of the cRSUs prior to the vesting date. The fair value is derived from the Black-Scholes model based on observable Level 2 inputs. The fair value of cRSUs was $7.5 million and $8.3 million as of June 30, 2026 and December 31, 2025, respectively. During the three and six months ended June 30, 2026, we recognized $2.2 million and $1.1 million of expense associated with the cRSUs.
Non-recurring fair value measurements
We measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill and long-lived tangible and intangible assets, in connection with periodic evaluations for potential impairment. We estimate the fair value of these assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. There were no impairment charges for the three and six months ended June 30, 2026 and 2025.