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Derivatives
 12 Months Ended
Dec. 31, 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 quarter ended December 31, 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 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, 2025, the information related to these offsetting arrangements were as follows (in thousands):
Instrument DescriptionGross Amounts of Recognized Assets / LiabilitiesGross Amounts Offset in the Consolidated Balance SheetNet Amounts of Assets / Liabilities Included in the Consolidated Balance Sheet
Notional Amount (1) (2)
Assets:
Derivatives designated as hedging instruments$78,223 $— $78,223 $988,447 
Derivatives not designated as hedging instruments24,123 (7,210)16,913 1,771,893 
Total derivative assets102,346 (7,210)95,136 2,760,340 
Liabilities:
Derivatives designated as hedging instruments(449)— (449)— 
Derivatives not designated as hedging instruments(14,411)7,210 (7,201)800,058 
Total derivative liabilities(14,860)7,210 (7,650)800,058 
Total derivative assets & liabilities$87,486 $— $87,486 $3,560,398 

(1)Comprised of 58 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 4.15% per annum. These swaps mature from August 13, 2027 to January 31, 2044.

(2)Comprised of 13 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 3.77% to 4.09% per annum. These swaptions expire from January 7, 2026 to March 4, 2026 with potential underlying swaps maturing on January 31, 2043 to January 31, 2044.

As of December 31, 2024, the information related to these offsetting arrangements were as follows (in thousands):
Instrument DescriptionGross Amounts of Recognized Assets / LiabilitiesGross Amounts Offset in the Consolidated Balance SheetNet Amounts of Assets / Liabilities Included in the Consolidated Balance SheetNotional Amount
Assets:
Derivatives designated as hedging instruments$117,793 $— $117,793 $1,382,188 
Derivatives not designated as hedging instruments53,965 (7,252)46,713 2,118,393 
Total derivative assets171,758 (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 
The losses (gains) on derivatives designated as cash flow hedges recognized into OCI, before tax effect, consisted of the following (in thousands):
Year Ended December 31,
202520242023
Derivatives designated as cash flow hedges:
Interest rate swaps$12,462 $(75,396)$(23,787)
The (gains) losses on derivatives financial instruments recognized into the consolidated statements of operations, before tax effect, consisted of the following (in thousands):
Year Ended December 31,
202520242023
Interest expense, net
Other income, net
Interest expense, net
Other expense, net
Interest expense, net
Other income, net
Derivatives designated as cash flow hedges:
Interest rate swaps
Gains reclassified from AOCI into income$(17,458)$— $(35,237)$— $(36,755)$— 
Derivatives not designated as cash flow hedges:
Interest rate swaps
Losses (gains) recognized into income
— 49,829 — (121,665)— 661 
Total (gains) losses$(17,458)$49,829 $(35,237)$(121,665)$(36,755)$661 
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 (losses) gains on derivatives includes the tax effect of $6.2 million, $8.0 million and $0.5 million for the twelve months ended December 31, 2025, 2024 and 2023, respectively.
During the next 12 months, the Company expects to reclassify $7.5 million of net gains on derivative instruments from accumulated other comprehensive income to earnings. There were forty-six undesignated derivative instruments recorded by the Company as of December 31, 2025.