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Derivative financial instruments
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative financial instruments Derivative financial instruments
We have entered into interest rate derivatives to hedge the current and future interest rate payments on our variable rate debt. These derivative financial instruments can include interest rate swaps, caps, floors, U.S. treasury locks, options and forward contracts.
As of June 30, 2025, we had interest rate contracts outstanding, with underlying variable benchmark interest rates of Secured Overnight Financing Rate (“SOFR” or “Term SOFR”) and U.S. Treasuries.
Some of our agreements with derivative counterparties require a two-way cash collateralization of derivative fair values. We did not have cash collateral from counterparties and had not advanced any cash collateral to counterparties as of June 30, 2025 or December 31, 2024.
The counterparties to our interest rate derivatives are primarily major international financial institutions. We continually monitor our positions and the credit ratings of the counterparties involved and limit the amount of credit exposure to any one party. We could be exposed to potential losses due to the credit risk of non-performance by these counterparties. We have not experienced any losses to date.
Our derivative assets are recorded in other assets and our derivative liabilities are recorded in accounts payable, accrued expenses and other liabilities in our Condensed Consolidated Balance Sheets.
The following tables present notional amounts and fair values of derivatives outstanding as of June 30, 2025 and December 31, 2024:
June 30, 2025December 31, 2024
Notional amount (a)Fair valueNotional amount (a)Fair value
Derivative assets not designated as accounting cash flow hedges:
Interest rate contracts$200,000 $5,431 $852,500 $11,216 
Derivative assets designated as accounting cash flow hedges:
Interest rate contracts$3,606,000 $31,482 $4,475,000 $70,554 
Total derivative assets$36,913 $81,770 
(a)The notional amount is excluded for interest rate contracts which are not yet effective.
June 30, 2025December 31, 2024
Notional amount (a)Fair valueNotional amount (a)Fair value
Derivative liabilities not designated as cash flow hedges:
Interest rate contracts$500,000 $9,472 $— $— 
Derivative liabilities designated as accounting cash flow hedges:
Interest rate contracts$5,205,000 $79,985 $1,655,000 $15,440 
Total derivative liabilities$89,457 $15,440 
(a)The notional amount is excluded for interest rate contracts which are not yet effective.
12. Derivative financial instruments (Continued)
We recorded the following in other comprehensive gain or loss related to derivative financial instruments for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Effective portion of change in fair market value of derivatives designated as accounting cash flow hedges:
Interest rate contracts$(34,327)$1,180 $(104,085)$76,439 
Derivative premium and amortization1,974 2,749 4,357 5,360 
Income tax effect4,409 (614)13,521 (11,286)
Net (loss) gain on derivatives, net of tax$(27,944)$3,315 $(86,207)$70,513 
We expect to reclassify approximately $20 million from accumulated other comprehensive income (“AOCI”) as a reduction in interest expense in our Condensed Consolidated Income Statements over the next 12 months.
The following table presents the effects of gains or losses related to derivatives recorded in interest expense in our Condensed Consolidated Income Statements for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Derivatives not designated as accounting hedges:
Interest rate contracts$(10,521)$(4,594)$(15,257)$(7,837)
Derivatives designated as accounting hedges:
Reclassification of amounts previously recorded within AOCI to interest expense12,503 (30,248)25,323 60,426 
Net gain (loss) recognized in interest expense$1,982 $(34,842)$10,066 $52,589