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Derivatives and Hedging Activities | 6 Months Ended
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Jun. 30, 2024
Derivatives and Hedging Activities [Abstract] |
Derivatives and Hedging Activities | 17.DERIVATIVES AND HEDGING ACTIVITIES The Company enters into interest rate swaps to hedge the future interest expense from variable rate debt and reduce the Company’s exposure to fluctuations in interest rates. As of June 30, 2024, the Company has an interest rate swap agreement on its 2024 Term Loan which swaps $1.95 billion of notional value accruing interest at one month Term SOFR plus 200 basis points for an all-in fixed rate of 2.050% per annum through March 31, 2025. Additionally, the Company has a forward-starting interest rate swap agreement which will swap $1.0 billion of notional value accruing interest at one month Term SOFR plus 200 basis points for an all-in fixed rate of 5.830% per annum. The forward-starting swap has an effective start date of March 31, 2025 and a maturity date of April 11, 2028. As of June 30, 2024, the hedges remain highly effective; therefore, changes in fair value are recorded in Accumulated other comprehensive loss, net. The table below outlines the effects of the Company’s interest rate swaps on the Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023.
|  |  |  | Fair Value as of
|  | Balance Sheet |  | June 30, |  | December 31,
|  | Location |  | 2024 |  | 2023
Derivatives Designated as Hedging Instruments |  |  |  | (in thousands)
Interest rate swap agreements in a fair value asset position |  | Other assets |  | $ | 74,573 |  | $ | 104,674
Interest rate swap agreement in a fair value liability position |  | Other long-term liabilities |  | $ | — |  | $ | 19,573
Accumulated other comprehensive loss, net includes an aggregate $54.1 million gain and a $51.5 million gain as of June 30, 2024 and December 31, 2023, respectively. The Company is exposed to counterparty credit risk to the extent that a counterparty fails to meet the terms of a contract. The Company’s exposure is limited to the current value of the contract at the time the counterparty fails to perform. The cash flows associated with these activities are reported in Net cash provided by operating activities on the Consolidated Statements of Cash Flows. The table below outlines the effects of the Company’s derivatives on the Consolidated Statements of Operations and Consolidated Statements of Shareholders’ Deficit for the three and six months ended June 30, 2024 and 2023.
|  |  |  | For the three months |  | For the six months
|  |  |  | ended June 30, |  | ended June 30,
|  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Cash Flow Hedge - Interest Rate Swap Agreement |  |  |  | (in thousands)
Change in fair value recorded in Accumulated other comprehensive |  |  |  |  |  |  |  |  |  |  |  |  |  |
loss, net |  |  |  | $ | (14,816) |  | $ | 7,856 |  | $ | (10,528) |  | $ | (23,540)
Derivatives Not Designated as Hedges - Interest Rate Swap Agreements |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount reclassified from Accumulated other comprehensive |  |  |  |  |  |  |  |  |  |  |  |  |  |
loss, net into Non-cash interest expense |  |  |  | $ | 6,579 |  | $ | 7,460 |  | $ | 13,158 |  | $ | 16,468

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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