Derivative Financial Instruments

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

13. Derivative Financial Instruments

The Company is exposed to market risks, including changes in interest rates. To manage the risk related to these exposures, the Company has entered into various derivative instruments that reduce these risks by creating offsetting exposures.

Interest Rate Swaps

The Company has utilized swap agreements that will fix the floating interest rates associated with its Term Loan as shown in the following table:

Designation Date	Effective Date	Initial Notional Amount		Notional Amount Outstanding as of March 31, 2025		Fixed Rate		Expiration Date
December 2021	April 2024	$	871,205,040	$	524,526,345	1.6533	%	June 2025
December 2021	April 2024	$	435,602,520	$	262,263,173	1.6560	%	June 2025
December 2021	April 2024	$	435,602,520	$	262,263,173	1.6650	%	June 2025
March 2022	June 2025	$	1,197,000,000	$	1,197,000,000	2.5540	%	December 2026
March 2023	March 2023	$	150,000,000	$	150,000,000	3.9025	%	December 2026
March 2023	March 2023	$	150,000,000	$	150,000,000	3.9100	%	December 2026

During the three months ended March 31, 2025, we did not execute any new interest rate swaps. Our interest rate swaps have been designated as cash flow hedges.

Financial Instrument Presentation

The fair values and location of outstanding derivative instruments recorded in the Condensed Consolidated Balance Sheets are as follows (in millions):

	March 31, 2025		December 31, 2024
Assets
Other current assets	$	17	$	23
Other assets	4		8
Total	$	21	$	31
Liabilities
Other current liabilities	$	—	$	—
Other liabilities	1		—
Total	$	1	$	—

The Company estimates that approximately $17 million of derivative gains included in Accumulated other comprehensive income as of March 31, 2025 will be reclassified into earnings over the next twelve months.