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Derivatives | 9 Months Ended
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Sep. 30, 2025
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 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 nine months ended September 30, 2025, 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 consolidated 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 expenses, net in the Company’s consolidated 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 September 30, 2025, 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 |  | $ | 71,370 |  |  | $ | — |  |  | $ | 71,370 |  |  | $ | 995,618 |
Derivatives not designated as hedging instruments |  | 9,516 |  |  | (5,781) |  |  | 3,735 |  |  | 769,320 |
Total derivative assets |  | $ | 80,886 |  |  | $ | (5,781) |  |  | $ | 75,105 |  |  | $ | 1,764,938 |
Liabilities: |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivatives not designated as hedging instruments |  | (25,128) |  |  | 5,781 |  |  | (19,347) |  |  | 1,617,185 |
Total derivative liabilities |  | $ | (25,128) |  |  | $ | 5,781 |  |  | $ | (19,347) |  |  | $ | 1,617,185 |
Total |  | $ | 55,758 |  |  | $ | — |  |  | $ | 55,758 |  |  | $ | 3,382,123 |
(1) Comprised of 54 interest rate swaps which effectively fix the SOFR portion of interest rates on outstanding balances of certain loans under the senior sections of the debt footnote table (see Note 8, Indebtedness) at 0.31% to 4.15% per annum. These swaps mature from August 13, 2027 to January 31, 2044. (2) Comprised of 14 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 8, Indebtedness) at 3.78% to 4.18% per annum. These swaptions expire from October 1, 2025 to December 3, 2025 with potential underlying swaps maturing from January 31, 2043 to April 30, 2043. 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
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 |  | $ | 164,373 |  |  | $ | — |  |  | $ | 164,373 |  |  | $ | 4,153,946 |
The losses (gains) on derivatives designated as cash flow hedges recognized into OCI, before tax effect, consisted of the following (in thousands):
|  | Three months ended September 30,
|  | 2025 |  | 2024
Derivatives designated as cash flow hedges: |  |  |  |
Interest rate swaps |  | $ | (1,668) |  |  | $ | 48,297 |
|  | Nine months ended September 30,
|  | 2025 |  | 2024
Derivatives designated as cash flow hedges: |  |  |  |
Interest rate swaps |  | $ | 22,463 |  |  | $ | (11,160) |
The (gains) losses on derivatives financial instruments recognized into the consolidated statements of operations, before tax effect, consisted of the following (in thousands):
|  | Three months ended September 30,
|  | 2025 |  | 2024
|  | Interest expense, net |  | Other expense, net |  | Interest expense, net |  | Other income, net
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Gains reclassified from Accumulated other comprehensive income (“AOCI”) into income |  | $ | (4,312) |  |  | $ | — |  |  | $ | (9,098) |  |  | $ | — |
Derivatives not designated as cash flow hedges: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Losses recognized into income |  | — |  |  | 14,430 |  |  | — |  |  | 86,596 |
Total (gains) losses |  | $ | (4,312) |  |  | $ | 14,430 |  |  | $ | (9,098) |  |  | $ | 86,596 |
|  | Nine months ended September 30,
|  | 2025 |  | 2024
|  | Interest expense, net |  | Other expense, net |  | Interest expense, net |  | Other income, net
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Gains reclassified from Accumulated other comprehensive income (“AOCI”) into income |  | $ | (14,102) |  |  | $ | — |  |  | $ | (28,647) |  |  | $ | — |
Derivatives not designated as cash flow hedges: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Losses recognized into income |  | — |  |  | 74,461 |  |  | — |  |  | 9,790 |
Total (gains) losses |  | $ | (14,102) |  |  | $ | 74,461 |  |  | $ | (28,647) |  |  | $ | 9,790 |
All amounts in AOCI in the consolidated statements of redeemable noncontrolling interests and equity relate to derivatives, refer to the consolidated statements of comprehensive income (loss). During the next 12 months, the Company expects to reclassify $9.2 million of net gains on derivative instruments from accumulated other comprehensive income to earnings. There were 43 undesignated derivative instruments recorded by the Company as of September 30, 2025.

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