Fair Value |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Fair Value Disclosures [Abstract] | |
| Fair Value | Fair Value Fair Value Disclosures The Company's contingent and deferred considerations were derived from business combinations (refer to Note 2. Acquisitions). The contingent considerations are classified within Level 3 of the fair value hierarchy due to the uncertainty of the fair value measurement created by the absence of quoted market prices, the inherent lack of liquidity and unobservable inputs used to measure fair value which require judgment. The Company uses valuation techniques including Monte Carlo simulations to estimate fair value based on projection period and assumed growth rates. A change in inputs in the valuation techniques used might result in a significantly higher or lower fair value measurement than what is reported. Contingent and deferred consideration liabilities are uncertain due to the utilization of unobservable inputs and management's judgment in determining the likelihood of achieving criteria required by the respective agreements. The contingent and deferred considerations have a fair value of $31.9 million at September 30, 2026, $2.6 million included in accounts payable and accrued expenses and $29.3 million included in other noncurrent liabilities on the Company's Unaudited Consolidated Balance Sheets. Notes Receivable Notes receivable are carried at amortized cost. Substantially all of the Company's notes receivable are secured, and the Company provides for allowances when it believes that certain notes receivable may not be collectible. The carrying value of the Company's notes receivable, net, approximates fair value and was approximately $21.5 million and $19.7 million at September 30, 2026 and December 31, 2025, respectively and is within Level 3 of the fair value hierarchy. Investment in Unconsolidated Entities The Company's investment in unconsolidated entities are carried at cost minus any impairment, if any. The carrying value of the investments approximate fair value and was $10.6 million and $8.6 million at September 30, 2026 and December 31, 2025, respectively, within other noncurrent assets on the Company's Unaudited Consolidated Balance Sheets. The investments in unconsolidated entities are within Level 3 of the fair value hierarchy. Debt Obligations Outstanding debt obligations (see Note 8. Debt Obligations) are reflected in the Company's Unaudited Consolidated Balance Sheets at carrying value since the Company did not elect to remeasure debt obligations to fair value at the end of each reporting period. The fair value of the term facility under the 2024 Credit Agreement was estimated to be $1,006.0 million and $998.3 million at September 30, 2026 and December 31, 2025, respectively. The fair value was estimated using binding and non-binding quoted prices in an active secondary market, which considers the credit risk and market related conditions, and is within Level 2 of the fair value hierarchy. The fair value of the term facility under the Residual Finance Credit Facility was estimated to be $43.0 million at September 30, 2026, and is classified under Level 3 of the fair value hierarchy due to the uncertainty of the fair value measurement created by the absence of quoted market prices, the inherent lack of liquidity and unobservable inputs used to measure fair value which require judgment. The Company uses the discounted cash flows approach to estimate the present value of the contractual cash flows that a market participant would expect to receive as of the valuation date, considering the facility’s floating-rate structure, required principal repayments, maturity, prepayment provisions, credit risk, collateral support and other relevant terms. A change in inputs in the valuation technique used might result in a significantly higher or lower fair value measurement than what is reported. During the three and nine months ended September 30, 2026, there were no transfers into, out of, or between levels of the fair value hierarchy. Long term incentive award The Company has established a long-term incentive award for the Chief Executive Officer, which is subject to specified performance conditions. Upon satisfaction of these performance criteria, the Chief Executive Officer becomes entitled to a predetermined amount of incentive compensation, which may be settled either in cash or in shares of the Company's Common Stock. Consequently, this arrangement is accounted for as a liability award in accordance with applicable accounting standards. The fair value of these awards is remeasured at each reporting date utilizing Level 3 inputs, which encompass management's estimates regarding the anticipated achievement of relevant financial metrics. The fair value of these awards as of September 30, 2026 was $2.8 million, $1.7 million included in accounts payable and accrued expenses and $1.1 million in other noncurrent liabilities on the Company's Unaudited Consolidated Balance Sheets.
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