Financial Instruments and Fair Value
Financial Instruments Disclosed at Fair Value
The following tables provide a summary of the significant financial instruments disclosed at fair value on a recurring basis:
 Fair Value Measurements at December 31, 2025
(in millions)Level 1Level 2Level 3Total
Term Loan B(1)
$482.3 $— $— $482.3 
Senior Unsecured Notes(1)
469.2 — — 469.2 
Equipment financings(2)
— — 34.8 34.8 
Total
$951.4 $— $34.8 $986.2 
 Fair Value Measurements at December 31, 2024
(in millions)Level 1Level 2Level 3Total
Term Loan B(1)
$485.8 $— $— $485.8 
Convertible Senior Notes(1)
— 1,018.9 — 1,018.9 
Equipment financings(2)
— — 49.3 49.3 
Mortgage(2)
— — 60.6 60.6 
Total
$485.8 $1,018.9 $109.9 $1,614.7 
(1) Fair value was determined using quoted market prices obtained from third-party pricing sources.
(2) Fair value approximates carrying value and was determined using the cost basis.
Financial Instruments Measured at Fair Value on a Recurring Basis
The following tables provide a summary of financial instruments that are measured at fair value on a recurring basis:
Fair Value Measurements at December 31, 2025
(in millions)Level 1Level 2Level 3Total
Assets:
Cash(1)
$138.7 $— $— $138.7 
Money market mutual funds(1)
577.4 — — 577.4 
Interest rate swaps(2)
— 1.0 — 1.0 
Total assets at fair value
$716.1 $1.0 $— $717.1 
Liabilities:
Interest rate swaps(2)
$— $0.8 $— $0.8 
Fair Value Measurements at December 31, 2024
(in millions)Level 1Level 2Level 3Total
Cash(1)
$133.4 $— $— $133.4 
Money market mutual funds(1)
819.9 — — 819.9 
Interest rate swaps(2)
— 5.4 — 5.4 
Debt securities(3)
— — 4.7 4.7 
Total assets at fair value
$953.3 $5.4 $4.7 $963.5 
(1) Cash and cash equivalents are carried at face amounts, which approximate their fair values.
(2) Fair value represents the estimated amounts the Company would receive or pay to terminate the contracts and is determined using industry standard valuation models and market-based observable inputs, including credit risk and interest rate yield curves. The fair value of the swaps is included in other assets and other liabilities at December 31, 2025 and in prepaid expenses and other current assets at December 31, 2024.
(3) Fair value is determined using a discounted cash flow valuation model and market-based unobservable inputs, including credit spread, and risk free rate ranging from 4.0% - 4.7%.
Judgment is involved in estimating inputs, such as discount rates, used in Level 3 fair value measurements. Changes to these inputs can have a significant effect on fair value measurements and amounts that could be realized.
Below is a reconciliation of changes in fair value of debt and other investments:
(in millions)Debt Securities Other Investments Total
December 31, 2023$4.7 $3.8 $8.5 
Unrealized loss included in other income (expense), net
— (3.8)(3.8)
December 31, 20244.7 — 4.7 
Provision for credit loss included in selling, general and administrative expenses(4.7)— (4.7)
December 31, 2025$— $— $— 

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 21, 2025
2023Feb 23, 2024
2018Feb 26, 2019
2017Feb 22, 2018
2016Feb 28, 2017
2015Feb 29, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.