v3.26.1
Fair Value
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
The following table summarizes financial instruments measured at fair value, on a recurring basis, as of March 31, 2026:
Total
Level 1 - Prices in Active Markets for Identical Assets
Level 2 -Significant Other Observable Input
Level 3 -Significant Unobservable
Inputs
Assets
Interest rate swaps (Note 6 and 10)
$31.7 $— $31.7 $— 
Convertible notes receivable (Note 6)
1.0 — — 1.0 
Marketable securities (Note 3)
0.6 — 0.6 — 
Total$33.3 $— $32.3 $1.0 
Liabilities
Interest rate swaps (Note 8 and 10)
$2.6 $— $2.6 $— 
Total
$2.6 $— $2.6 $— 
The following table summarizes financial instruments measured at fair value, on a recurring basis, as of December 31, 2025:
Total
Level 1 - Prices in Active Markets for Identical Assets
Level 2 -Significant Other Observable Input
Level 3 -Significant Unobservable
Inputs
Assets
Interest rate swaps (Note 6 and 10)
$31.7 $— $31.7 $— 
Convertible notes receivable (Note 6)
23.0 — — 23.0 
Marketable securities (Note 3)
2.7 — 2.7 — 
Foreign exchange forward contract
2.9 — 2.9 — 
Total$60.3 $— $37.3 $23.0 
Liabilities
Interest rate swaps (Note 8 and 10)
$12.0 $— $12.0 $— 
Total
$12.0 $— $12.0 $— 
Level 2 instruments include interest rate swaps, a foreign currency cash flow hedge and available-for-sale marketable securities consisting of foreign exchange-traded corporate bonds.
We determine the fair value of the interest rate swaps each reporting period using the market standard methodology of discounting the future expected net cash receipts or payments that would occur if variable interest rates rise above or fall below the fixed rates of the swaps, with changes in fair value recognized in other comprehensive income. The variable interest rates used in the calculations of projected receipts on the swaps are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. Each individual swap contract is valued independently and recorded on a gross basis in other assets and other current liabilities.
In November 2025, we entered into a foreign currency forward contract to economically hedge our exposure of a portion of the purchase price of our acquisition of a majority ownership interest in Trans Union de Mexico. The notional amount of the foreign exchange forward contract was MXN 2.9 billion. We determined the fair value of this contract using observable market inputs and standard valuation technique using the contracted forward rate and the current market forward rate for a contract with the same remaining term, with changes in fair value recognized in other income and (expense), net in the Consolidated Statement of Operations each period. This was settled during the three months ended March 31, 2026 upon completion of the acquisition of a majority ownership interest in Trans Union de Mexico.
We determine the fair value of the marketable securities, which are available-for-sale foreign exchange-traded corporate bonds, at their current quoted prices and they mature between 2027 and 2033. Unrealized gains and losses on the foreign exchange-traded corporate bonds, which are not material, are included in other comprehensive income.
Level 3 instruments consist of convertible notes receivable we have obtained from the variable interest entity we discuss in Note 1, “Significant Accounting Policies,” under the sub-heading “Variable Interest Entities.”
Each convertible note receivable is measured at fair value each period using an option pricing model with inputs based on the contractual terms of the convertible note. The significant unobservable inputs into the model include our estimates of the timing and probabilities of repayment or various conversion scenarios that result in a payoff in the form of preferred equity of the note issuer, and the value of the underlying preferred equity, which in part is based on forecasted revenue of the note issuer. We have elected to initially and subsequently measure these hybrid financial instruments at fair value, with changes in fair value recognized in interest income for the interest accretion component, and other income and (expense), net in the Consolidated Statements of Operations for other changes to fair value.
In the three months ended March 31, 2026, we converted all of the notes that were outstanding as of December 31, 2025 into preferred equity in the issuer of the notes as further discussed in Note 7, “Investment in Affiliated Companies.” During the three months ended March 31, 2026, we obtained an additional convertible note that has a face amount of $1.0 million, with simple interest at 12% per annum, and matures 16 months after the purchase date. The note may be converted into various equity shares based on certain events, or may be repaid in cash. The note was initially recorded at a fair value of $1.0 million, which was equivalent to the cash transferred to obtain the convertible note.