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Derivatives
 3 Months Ended
Mar. 31, 2026
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 three months ended March 31, 2026, 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 expenses, 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 March 31, 2026, 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$79,379 $— $79,379 $984,005 
Derivatives not designated as hedging instruments39,688 (5,408)34,280 2,040,560 
Total derivative assets$119,067 $(5,408)$113,659 $3,024,565 
Liabilities:
Derivatives designated as hedging instruments$— $— $— $— 
Derivatives not designated as hedging instruments(10,091)5,408 (4,683)873,353 
Total derivative liabilities$(10,091)$5,408 $(4,683)$873,353 
Total$108,976 $— $108,976 $3,897,918 

(1)    Comprised of 68 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 8, Indebtedness) at 0.31% to 4.15% per annum. These swaps mature from August 13, 2027 to July 31, 2045.

(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 8, Indebtedness) at 3.90% to 4.28% per annum. These swaptions expire from April 1, 2026 to June 3, 2026 with potential underlying swaps maturing from January 31, 2044 to July 31, 2048.
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 SheetNotional Amount
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 assets$102,346 $(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$87,486 $— $87,486 $3,560,398 
The (gains) losses on derivatives designated as cash flow hedges recognized into OCI, before tax effect, consisted of the following (in thousands):
Three months ended March 31,
20262025
Derivatives designated as cash flow hedges:
   Interest rate swaps$(4,317)$20,668 
The (gains) losses on derivatives financial instruments recognized into the consolidated statements of operations, before tax effect, consisted of the following (in thousands):
Three months ended March 31,
20262025
Interest expense, netOther expense, netInterest expense, netOther expense, net
Derivatives designated as cash flow hedges:
   Interest rate swaps:
      Gains reclassified from Accumulated other comprehensive income (“AOCI”) into income$(2,475)$— $(4,973)$— 
Derivatives not designated as cash flow hedges:
   Interest rate swaps:
      (Gains) losses recognized into income
— (18,173)— 45,503 
         Total (gains) losses$(2,475)$(18,173)$(4,973)$45,503 
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.
The net (gains) losses on derivatives includes the tax effect of $0.5 million and nil for three months ended March 31, 2026 and 2025, respectively.
During the next 12 months, the Company expects to reclassify $9.3 million of net gains on derivative instruments from accumulated other comprehensive income to earnings. There were 56 undesignated derivative instruments recorded by the Company as of March 31, 2026.