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Long-term debt | 3 Months Ended
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Mar. 31, 2019
Debt Disclosure [Abstract] |
Long-term debt | Long-term debt Long-term debt was comprised of the following:
|  |  |  |  |  |  | As of March 31, 2019
| March 31, 2019 |  | December 31, 2018 |  | Maturity date |  | Interest rate |  | Estimated fair value (2)
Senior Secured Credit Facilities: |  |  |  |  |  |  |  |  |
Term Loan A(1) | $ | 650,000 |  |  | $ | 675,000 |  |  | 12/24/2019 |  | 2.00% + LIBOR |  | $ | 649,155 |
Term Loan A-2(1) | 995,000 |  |  | 995,000 |  |  | 12/24/2019 |  | 1.00% + LIBOR |  | $ | 999,975 |
Term Loan B | 3,333,750 |  |  | 3,342,500 |  |  | 6/24/2021 |  | 2.75% + LIBOR(3) |  | $ | 3,350,419 |
Revolver(1) | 575,000 |  |  | 175,000 |  |  | 12/24/2019 |  | 2.00% + LIBOR |  | $ | 575,000 |
Senior Notes: |  |  |  |  |  |  |  |  |
5 3/4% Senior Notes | 1,250,000 |  |  | 1,250,000 |  |  | 8/15/2022 |  | 5.75% |  | $ | 1,271,875 |
5 1/8% Senior Notes | 1,750,000 |  |  | 1,750,000 |  |  | 7/15/2024 |  | 5.125% |  | $ | 1,729,175 |
5% Senior Notes | 1,500,000 |  |  | 1,500,000 |  |  | 5/1/2025 |  | 5% |  | $ | 1,439,250 |
Acquisition obligations and other notes payable(4) | 181,885 |  |  | 183,979 |  |  | 2019-2026 |  | 6.30% |  | $ | 181,885 |
Financing lease obligations(5) | 276,564 |  |  | 282,737 |  |  | 2019-2036 |  | 4.84% |  | $ | 276,564 |
Total debt principal outstanding | 10,512,199 |  |  | 10,154,216 |  |  |  |  |  |  |
Discount and deferred financing costs(6) | (48,495 | ) |  | (52,000 | ) |  |  |  |  |  |
| 10,463,704 |  |  | 10,102,216 |  |  |  |  |  |  |
Less current portion | (4,676,691 | ) |  | (1,929,369 | ) |  |  |  |  |  |
| $ | 5,787,013 |  |  | $ | 8,172,847 |  |  |  |  |  |  |
(1) | On May 6, 2019, the Company entered into an agreement to extend the maturity dates of its Term Loan A, Term Loan A-2 and Revolver by six months, to December 24, 2019.
(2) | Fair values are based upon quoted market prices for similar instruments, a level 2 input. The balances of acquisition obligations and other notes payable and financing lease obligations are presented in the condensed consolidated financial statements at March 31, 2019 at their approximate fair values due to the short-term nature of their settlements.
(3) | Term Loan B is subject to a LIBOR component floor of 0.75%.
(4) | The acquisition obligations and other notes payable interest rate is the weighted average interest rate based on the current interest rate in effect and assuming no changes to the LIBOR based interest rates.
(5) | The interest rate presented for financing lease obligations is the weighted average discount rate.
(6) | The carrying amount of the Company’s senior secured credit facilities includes a discount of $5,487 and deferred financing costs of $11,319, and the carrying amount of the Company’s senior notes includes deferred financing costs of $31,689 as of March 31, 2019.
Scheduled maturities of long-term debt at March 31, 2019 were as follows:
2019 (remainder of the year)(1) | 4,654,038 |
2020 | 83,658 |
2021 | 940,050 |
2022 | 1,291,930 |
2023 | 52,538 |
2024 | 1,784,606 |
Thereafter | 1,705,379 |
(1) | Includes $2,372,764 representing our estimate of Term Loan B principal prepayments expected to be paid in 2019 from net cash proceeds of the DMG sale, as described below.
The Company's senior secured credit facilities become subject to partial mandatory prepayment if, and when, the Company consummates the sale of its DMG division to Collaborative Care Holdings, LLC (Optum), a subsidiary of UnitedHealth Group Inc. (the DMG sale). As disclosed in the Company’s current report on Form 8-K filed November 26, 2018, the first amendment to the credit agreement governing the Company’s senior secured credit facilities amended existing covenants to permit the sale of the DMG business and require net cash proceeds from the sale in excess of $750,000 to be used to prepay debt outstanding under the Company’s credit facilities. As of March 31, 2019, the Company expects to close the DMG sale in the near term and to prepay debt without immediately drawing down replacement debt. Accordingly, the Company has classified as current its estimate of the portion of its otherwise noncurrent debt that is expected to be prepaid with the expected net proceeds from the sale. During the first three months of 2019, the Company made mandatory principal payments under its senior secured credit facilities totaling $25,000 on Term Loan A and $8,750 on Term Loan B. As of March 31, 2019, the Company maintains several interest rate cap agreements entered into in October 2015 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, including all of Term Loan B and part of Term Loan A. The remaining $483,750 outstanding principal balance of Term Loan A and the entire outstanding balance on Term Loan A-2 and Revolver are subject to LIBOR-based interest rate volatility. The cap agreements are designated as cash flow hedges and, as a result, changes in the fair values of these cap agreements are reported in other comprehensive (loss) income. The amortization of the original cap premium is recognized as a component of debt expense on a straight-line basis over the terms of the cap agreements. These cap agreements do not contain credit-risk contingent features. The following table summarizes the Company’s derivative instruments outstanding as of March 31, 2019 and December 31, 2018, which are classified in "Other long-term assets" on its consolidated balance sheet:
|  |  |  |  |  |  |  |  | March 31, 2019 |  | Fair value
| Notional amount |  | LIBOR maximum rate |  | Effective date |  | Expiration date |  | Debt expense |  | Recorded OCI loss |  | March 31, 2019 |  | December 31, 2018
October 2015 caps | $ | 3,500,000 |  |  | 3.5% |  | 6/29/2018 |  | 6/30/2020 |  | $ | 2,163 |  |  | $ | 781 |  |  | $ | 70 |  |  | $ | 851 |
The following table summarizes the effects of the Company’s interest rate cap agreements for the three months ended March 31, 2019 and 2018:
| Amount of unrecognized (losses) gains in OCI on interest rate cap agreements |  | Income statement location |  | Reclassification from accumulated other comprehensive income into net income
| Three months ended March 31, |  |  | Three months ended March 31,
Derivatives designated as cash flow hedges | 2019 |  | 2018 |  |  | 2019 |  | 2018
Interest rate cap agreements | $ | (781 | ) |  | $ | 1,414 |  |  | Debt expense |  | $ | 2,163 |  |  | $ | 2,070 |
Tax expense (benefit) | 201 |  |  | (364 | ) |  | Tax expense |  | (557 | ) |  | (533 | )
Total | $ | (580 | ) |  | $ | 1,050 |  |  |  |  | $ | 1,606 |  |  | $ | 1,537 |
See Note 14 to these condensed consolidated financial statements for further details on amounts recorded and reclassified from accumulated other comprehensive income. The Company’s weighted average effective interest rate on the senior secured credit facilities at the end of the first quarter was 5.00%, based on the current margins in effect for Term Loan A, Term Loan A-2, Term Loan B and Revolver, as of March 31, 2019, as described above. The Company’s overall weighted average effective interest rate during the quarter ended March 31, 2019 was 5.16% and as of March 31, 2019 was 5.14%. As of March 31, 2019, the Company’s interest rates are fixed on approximately 46.31% of its total debt. As of March 31, 2019, the Company had $575,000 drawn on its $1,000,000 revolving line of credit under its senior secured credit facilities, of which approximately $38,017 was committed for outstanding letters of credit. The Company also has approximately $40,871 of additional outstanding letters of credit under a separate bilateral secured letter of credit facility, and $211 of committed outstanding letters of credit which are backed by a certificate of deposit.

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