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Derivatives | 12 Months Ended
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Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives Interest Rate Swaps The Company uses interest rate swaps to hedge variable interest payments due on certain of its term loans and aggregation facility. These swaps allow the Company to incur fixed interest rates on these loans and receive payments based on variable interest rates with the swap counterparty based on SOFR (daily, one month, three month) on the notional amounts over the life of the swaps. In the second quarter of 2023, the Company entered into bilateral agreements with its swap counterparties to transition the remaining portion of its swaps to SOFR. The Company made various elections under FASB ASC Topic 848, Reference Rate Reform, related to changes in critical terms of the hedging relationships due to reference rate reform to not result in a de-designation of these hedging relationships. As of September 30, 2023, all of the Company's interest rate swap agreements were indexed to SOFR. In December 2023, the Company started using interest rate swaptions to protect against adverse fluctuations in interest rates prior to expected future draws on the Company’s floating-rate facilities, at which point the Company enters into long-term interest rate hedges. The interest rate swaps have been designated as cash flow hedges. The credit risk adjustment associated with these swaps is the risk of non-performance by the counterparties to the contracts. In the quarter ended December 31, 2024, the hedge relationships on the Company’s interest rate swaps have been assessed as highly effective as the quarterly assessment performed determined changes in cash flows of the derivative instruments have been highly effective in offsetting the changes in the cash flows of the hedged items, are expected to be highly effective in the future and the critical terms of the interest rate swaps match the critical terms of the underlying forecasted hedged transactions. Accordingly, changes in the fair value of these derivatives are recorded as a component of accumulated other comprehensive income, net of income taxes. Changes in the fair value of these derivatives are subsequently reclassified into earnings, and are included in interest expense, net in the Company’s statements of operations, in the period that the hedged forecasted transactions affect earnings. To the extent that the hedge relationships are not effective, changes in the fair value of these derivatives are recorded in other expense (income), net in the Company's statements of operations on a prospective basis. The Company’s master netting and other similar arrangements allow net settlements under certain conditions. When those conditions are met, the Company presents derivatives at net fair value. As of December 31, 2024, the information related to these offsetting arrangements were as follows (in thousands):
Instrument Description |  | Gross Amounts of Recognized Assets / Liabilities |  | Gross Amounts Offset in the Consolidated Balance Sheet |  | Net Amounts of Assets / Liabilities Included in the Consolidated Balance Sheet |  | Notional Amount (1) (2)
Assets: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  | $ | 117,793 |  |  | $ | — |  |  | $ | 117,793 |  |  | $ | 1,382,188 |
Derivatives not designated as hedging instruments |  | 53,965 |  |  | (7,252) |  |  | 46,713 |  |  | 2,118,393 |
Total derivative assets |  | 171,758 |  |  | (7,252) |  |  | 164,506 |  |  | 3,500,581 |
Liabilities: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  | — |  |  | — |  |  | — |  |  | — |
Derivatives not designated as hedging instruments |  | (7,385) |  |  | 7,252 |  |  | (133) |  |  | 653,365 |
Total derivative liabilities |  | (7,385) |  |  | 7,252 |  |  | (133) |  |  | 653,365 |
Total derivative assets & liabilities |  | $ | 164,373 |  |  | $ | — |  |  | $ | 164,373 |  |  | $ | 4,153,946 |
(1)Comprised of 66 interest rate swaps which effectively fix the SOFR portion of interest rates on outstanding balances of certain loans under the senior section of the debt footnote table (see Note 10, Indebtedness) at 0.31% to 4.53% per annum. These swaps mature from August 13, 2027 to January 31, 2043. (2)Comprised of 9 interest rate swaptions which effectively fix the SOFR portion of interest rates on future outstanding balances of certain loans under the senior revolving section of the debt footnote table (see Note 10, Indebtedness) at 3.94% to 4.27% per annum. These swaptions expire from February 5, 2025 to March 5, 2025 with potential underlying swaps maturing on October 31, 2040. As of December 31, 2023, the information related to these offsetting arrangements were as follows (in thousands):
Instrument Description |  | Gross Amounts of Recognized Assets / Liabilities |  | Gross Amounts Offset in the Consolidated Balance Sheet |  | Net Amounts of Assets / Liabilities Included in the Consolidated Balance Sheet |  | Notional Amount
Assets: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  | $ | 97,321 |  |  | $ | (5) |  |  | $ | 97,316 |  |  | $ | 1,416,686 |
Derivatives not designated as hedging instruments |  | 35,413 |  |  | (5,246) |  |  | 30,167 |  |  | 1,695,495 |
Total derivative assets |  | 132,734 |  |  | (5,251) |  |  | 127,483 |  |  | 3,112,181 |
Liabilities: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  | (5,963) |  |  | 5 |  |  | (5,958) |  |  | 324,042 |
Derivatives not designated as hedging instruments |  | (54,438) |  |  | 5,246 |  |  | (49,192) |  |  | 809,785 |
Total derivative liabilities |  | (60,401) |  |  | 5,251 |  |  | (55,150) |  |  | 1,133,827 |
Total derivative assets & liabilities |  | $ | 72,333 |  |  | $ | — |  |  | $ | 72,333 |  |  | $ | 4,246,008 |
The gains on derivatives designated as cash flow hedges recognized into OCI, before tax effect, consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Derivatives designated as cash flow hedges: |  |  |  |  |  |
Interest rate swaps |  | $ | (75,396) |  |  | $ | (23,787) |  |  | $ | (177,451) |
The losses (gains) on derivatives financial instruments recognized into the consolidated statements of operations, before tax effect, consisted of the following (in thousands):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
|  | Interest expense, net |  | Other expense, net |  | Interest expense, net |  | Other income, net |  | Interest expense, net |  | Other income, net
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  |  |  |  |  |  |  |  |  |  |  |
Gains reclassified from AOCI into income |  | $ | (35,237) |  |  | $ | — |  |  | $ | (36,755) |  |  | $ | — |  |  | $ | (2,407) |  |  | $ | — |
Derivatives not designated as cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  |  |  |  |  |  |  |  |  |  |  |
(Gains) losses recognized into income |  | — |  |  | (121,665) |  |  | — |  |  | 661 |  |  | — |  |  | (189,710) |
Total (gains) losses |  | $ | (35,237) |  |  | $ | (121,665) |  |  | $ | (36,755) |  |  | $ | 661 |  |  | $ | (2,407) |  |  | $ | (189,710) |
All amounts in Accumulated other comprehensive (loss) income ("AOCI") in the consolidated statements of redeemable noncontrolling interests and equity relate to derivatives, refer to the consolidated statements of comprehensive loss. The net gains (losses) on derivatives includes the tax effect of $8.0 million, $0.5 million and $34.9 million for the twelve months ended December 31, 2024, 2023 and 2022, respectively. During the next 12 months, the Company expects to reclassify $16.2 million of net gains on derivative instruments from accumulated other comprehensive income to earnings. There were forty-four undesignated derivative instruments recorded by the Company as of 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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