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Derivatives and Hedging | 3 Months Ended
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Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging | NOTE 16: DERIVATIVES AND HEDGING The Company is exposed to, among other things, the impact of changes in interest rates and foreign currency exchanges rates in the normal course of business. The Company’s objective in risk management is to utilize interest rate derivatives to add stability to interest expense and manage its exposure to interest rate movements and utilize foreign exchange rate derivatives to add stability to foreign exchange expense and manage its exposure to exchange rate movements. To accomplish this objective, the Company primarily uses (i) interest-rate swaps and interest-rate caps as part of its interest rate risk management strategy and (ii) foreign currency forward contracts to protect against the foreign currency exchange rate risk inherent on forecasted transactions. The Company uses derivative financial instruments only to the extent necessary to hedge identified business risks and does not enter into such transactions for trading purposes. Interest-rate swap and interest-rate cap agreements Interest-rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest-rate caps designated as cash flow hedges involve payment of a fixed premium to a counterparty in exchange for the company receiving a SOFR cap over the life of the agreement without exchange of the underlying notional amount. During the three months ended March 31, 2025 and 2024, such derivatives were used to hedge the variable cash flows associated with its long-term debt agreements. The tables below summarize the key terms of the interest-rate swap and interest-rate cap agreements: Interest-rate swap agreements:
Aggregate Notional Amount |  |  | Effective Date |  | Maturity Date |  | Interest - Rate
(In thousands) |  |  |  |  |  |  |
$ | 500,000 |  | (1) | June 28, 2019 |  | March 27, 2024 |  | Average fixed SOFR rate of 2.41% (2)
$ | 400,000 |  |  | March 31, 2023 |  | December 31, 2025 |  | Fixed SOFR rate of 3.71%
Interest-rate cap agreements:
Aggregate Notional Amount |  |  | Effective Date |  | Maturity Date |  | Interest - Rate
(In thousands) |  |  |  |  |  |  |
$ | 1,500,000 |  | (3) | March 31, 2023 |  | September 30, 2025 |  | Capped SOFR rate of 4.45% (4)
$ | 1,500,000 |  |  | September 30, 2025 |  | December 31, 2026 |  | Capped SOFR rate of 5.00%
(1) The original interest-rate swap agreement, dated November 30, 2022, has an initial notional amount of $1,000.0 million, decreasing to $750.0 million on March 31, 2022, and to $500.0 million on March 31, 2023. (2) The interest rate was amended on June 29, 2023 from LIBOR (2.47%) to SOFR (2.41%). (3) The original interest-rate cap agreement, dated November 30, 2022, has an initial notional amount of $500.0 million, increasing to $1,000.0 million on March 31, 2023, and increasing to $1,500.0 million on March 28, 2024. (4) The interest rate was amended on June 29, 2023 from LIBOR (4.50%) to SOFR (4.45%). The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheets and the net amounts of assets and liabilities presented therein:
|  | As of March 31, 2025 |  |  | As of December 31, 2024 |
|  | Asset |  |  | Liability |  |  | Asset |  |  | Liability |
|  | (in thousands) |
Interest-rate swap agreements |  | $ | 908 |  |  | $ | — |  |  | $ | 1,539 |  |  | $ | — |
Interest-rate cap agreements |  |  | — |  |  |  | 12,553 |  |  |  | — |  |  |  | 12,676 |
Net derivatives as classified in the consolidated balance sheets |  | $ | 908 |  |  | $ | 12,553 |  |  | $ | 1,539 |  |  | $ | 12,676 |
For the interest-rate swaps, differences between the hedged interest rate and the fixed rate are recorded as interest expense in the Consolidated Statements of Operations in the same period that the related interest is recorded for the Company’s long-term debt agreements. For the interest-rate caps, monthly premiums and differences received between the hedged interest rate and the interest rate cap are recorded to interest expense in the Consolidated Statements of Operations in the same period that the related interest is recorded for the Company’s long-term debt agreements. Foreign currency forward exchange contracts The Company has operations in Canada, as well as other countries outside of North America, and consequently the Consolidated Balance Sheets can be affected by movements in exchange rates for limited balances denominated in foreign currency. Currency exposures can also arise from certain revenue and purchase transactions denominated in foreign currencies, primarily payroll costs which are in local currencies. The Company enters into short term foreign exchange contracts throughout the year designated as a cash flow hedge to manage the exposure to changes in the exchange rate on its Canadian and United Kingdom payroll costs, requiring the Company to buy a notional amount of Canadian dollars and British Pounds Sterling. The contracts require the Company to buy a notional amount of the foreign currency at a set rate weekly from a reference date to maturity date, or until a maximum value is reached. The Company had one foreign currency contract that was entered April 12, 2024 at a notional value of GBP 17.5 million and matured on December 31, 2024.

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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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