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Long-term debt | 6 Months Ended
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Jun. 30, 2016
Debt Disclosure [Abstract] |
Long-term debt |
8. | Long-term debt
Long-term debt was comprised of the following:
|  | June 30, |  |  | December 31, |
|  | 2016 |  |  | 2015 |
Senior Secured Credit Facilities: |  |  |  |  |  |  |  |
Term Loan A |  | $ | 900,000 |  |  | $ | 925,000 |
Term Loan B |  |  | 3,430,000 |  |  |  | 3,447,500 |
Senior notes |  |  | 4,500,000 |  |  |  | 4,500,000 |
Acquisition obligations and other notes payable |  |  | 71,515 |  |  |  | 70,645 |
Capital lease obligations |  |  | 287,838 |  |  |  | 283,185 |
Total debt principal outstanding |  |  | 9,189,353 |  |  |  | 9,226,330 |
Discount and deferred financing costs |  |  | (87,913 | ) |  |  | (95,985 | )
|  |  | 9,101,440 |  |  |  | 9,130,345 |
Less current portion |  |  | (144,183 | ) |  |  | (129,037 | )
|  | $ | 8,957,257 |  |  | $ | 9,001,308 |
Scheduled maturities of long-term debt at June 30, 2016 were as follows:
2016 (remainder of the year) |  |  | 76,295 |
2017 |  |  | 153,660 |
2018 |  |  | 169,716 |
2019 |  |  | 742,290 |
2020 |  |  | 66,640 |
2021 |  |  | 3,298,210 |
Thereafter |  |  | 4,682,542 |
During the first six months of 2016, the Company made mandatory principal payments under its Senior Secured Credit Facilities totaling $25,000 on the Term Loan A and $17,500 on the Term Loan B. The Company has entered into several interest rate swap agreements as a means of hedging its exposure to and volatility from variable-based interest rate changes as part of its overall interest rate risk management strategy. These agreements are not held for trading or speculative purposes and have the economic effect of converting the LIBOR variable component of the Company’s interest rate to a fixed rate. These swap agreements are designated as cash flow hedges, and as a result, hedge-effective gains or losses resulting from changes in the fair values of these swaps are reported in other comprehensive income until such time as the hedged forecasted cash flows occur, at which time the amounts are reclassified into net income. Net amounts paid or received for each specific swap tranche that have settled have been reflected as adjustments to debt expense. In addition, the Company has entered into several active and forward interest rate cap agreements that have the economic effect of capping the Company’s maximum exposure to LIBOR variable interest rate changes on specific portions of the Company’s floating rate debt, as described below. The cap agreements are also designated as cash flow hedges and, as a result, changes in the fair values of these cap agreements are reported in other comprehensive income. The amortization of the original cap premium is recognized as a component of debt expense on a straight-line basis over the term of the cap agreements. The swap and cap agreements do not contain credit-risk contingent features. As of June 30, 2016, the Company maintains several interest rate swap agreements that were entered into in March 2013 with amortizing notional amounts totaling $688,750. These agreements have the economic effect of modifying the LIBOR variable component of the Company’s interest rate on an equivalent amount of the Company’s Term Loan A to fixed rates ranging from 0.49% to 0.52%, resulting in an overall weighted average effective interest rate of 2.51%, including the Term Loan A margin of 2.00%. The overall weighted average effective interest rate also includes the effects of $211,250 of unhedged Term Loan A debt that bears interest at LIBOR plus an interest rate margin of 2.00%. The swap agreements expire on September 30, 2016 and require monthly interest payments. During the six months ended June 30, 2016, the Company recognized debt expense of $274 from these swaps. As of June 30, 2016, the total fair value of these swap agreements was a net liability of approximately $70. During the six months ended June 30, 2016, the Company recorded a loss of $860 in other comprehensive income due to a decrease in the unrealized fair value of these swap agreements. The Company estimates that approximately $70 of existing unrealized pre-tax losses in other comprehensive income at June 30, 2016 will be reclassified into income over the next three months. As of June 30, 2016, the Company maintains several forward interest rate cap agreements that were entered into in October 2015 with notional amounts totaling $3,500,000. These forward cap agreements will be effective June 29, 2018 and will have the economic effect of capping the LIBOR variable component of the Company’s interest rate at a maximum of 3.50% on an equivalent amount of its debt. These cap agreements expire on June 30, 2020. As of June 30, 2016, the total fair value of these cap agreements was an asset of approximately $2,698. During the six months ended June 30, 2016, the Company recorded a loss of $11,118 in other comprehensive income due to a decrease in the unrealized fair value of these cap agreements. The Company also maintains several forward interest rate cap agreements that were entered into in November 2014 with notional amounts totaling $3,500,000. These forward cap agreements will be effective September 30, 2016 and will have the economic effect of capping the LIBOR variable component of the Company’s interest rate at a maximum of 3.50% on an equivalent amount of the Company’s debt. The cap agreements expire on June 30, 2018. As of June 30, 2016, the total fair value of these cap agreements was an asset of approximately $55. During the six months ended June 30, 2016, the Company recorded a loss of $1,256 in other comprehensive income due to a decrease in the unrealized fair value of these cap agreements. As of June 30, 2016, the Company maintains several interest rate cap agreements that were entered into in March 2013 with notional amounts totaling $2,735,000 on the Company’s Term Loan B debt. These agreements have the economic effect of capping the LIBOR variable component of the Company’s interest rate at a maximum of 2.50% on an equivalent amount of the Company’s Term Loan B. During the six months ended June 30, 2016, the Company recognized debt expense of $1,220 from these caps. The cap agreements expire on September 30, 2016. As of June 30, 2016, the total fair value of these cap agreements was immaterial. The following table summarizes the Company’s derivative instruments as of June 30, 2016 and December 31, 2015:
|  | June 30, 2016 |  |  | December 31, 2015 |
Derivatives designated as hedging instruments |  | Balance sheet location |  | Fair value |  |  | Balance sheet location |  | Fair value |
Interest rate swap agreements |  | Other short-term liabilities |  | $ | 70 |  |  | Other short-term assets |  | $ | 516 |
Interest rate cap agreements |  | Other long-term assets |  | $ | 2,753 |  |  | Other long-term assets |  | $ | 15,127 |
The following table summarizes the effects of the Company’s interest rate swap and cap agreements for the three and six months ended June 30, 2016 and 2015:
|  | Amount of (losses) gains |  |  |  |  | Amount of (losses) gains |
|  | recognized in OCI on interest |  |  |  |  | reclassified from |
|  | rate swap and cap agreements |  |  | Location of |  | accumulated OCI into income |
|  | Three months ended |  |  | Six months ended |  |  | losses reclassified |  | Three months ended |  |  | Six months ended |
|  | June 30, |  |  | June 30, |  |  | from accumulated |  | June 30, |  |  | June 30, |
Derivatives designated as cash flow hedges |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |  |  | OCI into income |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Interest rate swap agreements |  | $ | (168 | ) |  | $ | (976 | ) |  | $ | (860 | ) |  | $ | (3,670 | ) |  | Debt expense |  | $ | (123 | ) |  | $ | (684 | ) |  | $ | (274 | ) |  | $ | (1,406 | )
Interest rate cap agreements |  |  | (4,115 | ) |  |  | (3,049 | ) |  |  | (12,374 | ) |  |  | (9,806 | ) |  | Debt expense |  |  | (610 | ) |  |  | (610 | ) |  |  | (1,220 | ) |  |  | (1,220 | )
Tax benefit |  |  | 1,667 |  |  |  | 1,572 |  |  |  | 5,149 |  |  |  | 5,263 |  |  |  |  |  | 285 |  |  |  | 505 |  |  |  | 581 |  |  |  | 1,025 |
Total |  | $ | (2,616 | ) |  | $ | (2,453 | ) |  | $ | (8,085 | ) |  | $ | (8,213 | ) |  |  |  | $ | (448 | ) |  | $ | (789 | ) |  | $ | (913 | ) |  | $ | (1,601 | )
As of June 30, 2016, the interest rate on the Company’s Term Loan B debt is effectively fixed subject to an embedded LIBOR floor which is higher than actual LIBOR as of such date. The Term Loan B is also subject to interest rate caps if LIBOR should rise above 2.50%. See above for further details. Interest rates on the Company’s senior notes are fixed by their terms. The LIBOR variable component of the Company’s interest rate on the majority of the Company’s Term Loan A is economically fixed as a result of interest rate swaps. As a result of embedded LIBOR floors on the Term Loan B debt agreement and the swap and cap agreements, the Company’s overall weighted average effective interest rate on the Senior Secured Credit Facilities was 3.52%, based on the current margins in effect of 2.00% for the Term Loan A and 2.75% for the Term Loan B, as of June 30, 2016. The Company’s overall weighted average effective interest rate during the second quarter of 2016 was 4.42% and as of June 30, 2016 was 4.43%. As of June 30, 2016, the Company had undrawn revolving credit facilities totaling $1,000,000, of which approximately $91,062 was committed for outstanding letters of credit. In addition, the Company has approximately $1,286 of committed letters of credit outstanding related to HCP, which is backed by a certificate of deposit.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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