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INTEREST RATE DERIVATIVES
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
INTEREST RATE DERIVATIVES INTEREST RATE DERIVATIVES
The loans entered into in connection with the credit facility described above in Note 9—Long-Term Debt Obligations expose the Company to risk of variability in cash flows due to changes in interest rates. The Company’s primary objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements. The Company uses interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps have the economic effect of offsetting the variable interest obligations based on the specified SOFR or EURIBOR components associated with the Company's long-term debt obligations so that the interest payable on these effectively becomes fixed. The Company uses interest rate swaps to manage interest rate risk on its long-term debt obligations.
For derivative instruments that are not designated as hedging instruments, specifically the swaps hedging the EURIBOR component associated with the €452.4 million 2024 Euro Term Loan and SOFR component associated with the $904.2 million 2024 USD Term Loan, any change in fair value is reported within gains (losses) on derivatives during the period of the change in the condensed consolidated statements of operations. The notional amount of the 2024 Euro Term Loan interest rate swap was €452.4 million as of June 30, 2026 and December 31, 2025. The fair value asset of the 2024 Euro Term Loan interest rate swap was $7.1 million USD and $10.9 million USD as of June 30, 2026 and December 31, 2025, respectively. The notional amount of the 2024 USD Term Loan interest rate swap was $904.2 million and $1,004.2 million as of June 30, 2026 and December 31, 2025, respectively. The fair value asset of the 2024 USD Term Loan interest rate swap was $14.9 million and $23.5 million as of June 30, 2026 and December 31, 2025, respectively. The fair value of the interest rate swaps was recognized in prepaid expenses and other current assets as of June 30, 2026 on the condensed consolidated balance sheets, as the swaps mature in February 2027.
In connection with the Company's early principal payments related to the 2024 USD Term Loan that occurred in 2025, it became probable that certain forecasted transactions would not occur. As a result, the Company unwound $602.3 million of the notional value of its interest rate swap associated with the 2024 USD Term Loan and, in conjunction, dedesignated its hedging relationship and reclassified $23.5 million from accumulated other comprehensive income to interest expense as a reduction of such interest expense during the year ended December 31, 2025. The Company determined that the remaining transactions that were hedged remain reasonably possible of occurring and, as a result, retained a balance in accumulated other comprehensive income of $33.8 million as of December 15, 2025.
In connection with the Company's early principal payment related to the 2024 USD Term Loan of $100.0 million on May 5, 2026, it became probable that certain forecasted transactions would not occur. As a result, the Company unwound $100.0 million of the notional value of its interest rate swap associated with the 2024 USD Term Loan and reclassified $2.3 million from accumulated other comprehensive income to interest expense as a reduction of such interest expense during the three and six months ended June 30, 2026. The Company determined that the remaining transactions that were hedged remain reasonably possible of occurring and, as a result, retained a balance in accumulated other comprehensive income of $20.4 million as of May 5, 2026.
Until it becomes probable that the forecasted cash transactions will not occur, amounts recorded in accumulated other comprehensive income before the Company discontinued cash flow hedge accounting will be reclassified to interest expense over the remaining life of the interest rate swap agreements.
The following table presents the activity of derivative instruments previously designated as cash flow hedges, and the related tax effect, on accumulated other comprehensive income (loss) (in thousands) for the three and six months ended June 30, 2026 and 2025 (in thousands):
Interest Rate Contract Previously Designated as Cash Flow Hedge
Balance as of December 31, 2025$67,454
Amortization of unrealized loss (gain) on cash flow hedge reclassed to interest expense(7,166)
Tax effect(9,097)
Balance as of March 31, 202651,191
Amortization of unrealized loss (gain) on cash flow hedge reclassed to interest expense(9,053)
Tax effect(5,860)
Balance as of June 30, 2026$36,278
Interest Rate Contract Previously Designated as Cash Flow Hedge
Balance as of December 31, 2024$126,918
Loss recognized in other comprehensive income (loss)(7,173)
Amortization of unrealized loss (gain) on cash flow hedge reclassed to interest expense(1,819)
Other comprehensive loss (income) released to interest expense(12,385)
Tax effect5,610
Balance as of March 31, 2025111,151
Loss recognized in other comprehensive income (loss)(46)
Amortization of unrealized loss (gain) on cash flow hedge reclassed to interest expense(1,840)
Other comprehensive loss (income) released to interest expense(12,462)
Tax effect3,117
Balance as of June 30, 2025$99,920
The Company recognizes assets or liabilities at fair value of the estimated amounts it would receive or pay upon a termination of interest rate derivatives prior to their scheduled expiration dates. These assets and liabilities are recognized as Level 2 within the fair value hierarchy as they are measured based on observable inputs. See Note 3—Fair Value Measurements for more information.
The Company estimates that $16.3 million of the balance in accumulated other comprehensive income (loss) as of June 30, 2026 will be reclassified as a benefit to interest expense during the next 12 months.