Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Financial Instruments

The following table summarizes the terms and fair values of our derivative financial instruments at December 31, 2024 and December 31, 2023 (dollars in millions):

Derivative Type	Number of Instruments (1)	Notional Amount  as of				Weighted Average Strike Rate (2)	Maturity Date (3)	Fair Value - asset (liability)  as of
Derivatives Designated as Hedging Instruments		December 31, 2024		December 31, 2023				December 31, 2024		December 31, 2023
Interest rate swaps (4)	10	$	2,180.0	$	1,630.0	3.40%	Jun 2025 - Aug 2027	$	24.3	$	0.3
Interest rate swaptions (5)	—	—		1,000.0		—	—	—		2.6
Cross-currency swaps - Fair Value	3	320.0		320.0		(6)	Oct 2032	(42.2)		(59.8)
Cross-currency swaps - Net Investment	3	280.0		280.0		(7)	Oct 2032	(37.6)		(53.2)
Foreign currency forwards	26	349.5		162.3		(8)	Jan 2025 - Jun 2026	9.3		2.7
		$	3,129.5	$	3,392.3			$	(46.2)	$	(107.4)
Derivatives not Designated as Hedging Instruments
Currency exchange swaps	4	$	1,725.3	$	1,810.6	(9)	Jan 2025	$	11.8	$	8.9
		$	1,725.3	$	1,810.6			$	11.8	$	8.9
Total of all Derivatives		$	4,854.8	$	5,202.9			$	(34.4)	$	(98.5)

(1)This column represents the number of instruments outstanding as of December 31, 2024.

(2)Weighted average strike rate is calculated using the notional value as of December 31, 2024.

(3)This column represents maturity dates for instruments outstanding as of December 31, 2024.

(4)During the year ended December 31, 2024, we entered into five variable-to-fixed interest rate swaps when we extended the maturity of the 2023 term loans and designated them as cash flow hedges. We also designated five other variable-to-fixed interest rate swaps we acquired from Spirit as cash flow hedges to mitigate the interest rate risk associated with the term loans we assumed in conjunction with the Merger. The acquisition date fair value of these acquired derivatives was $35.1 million in total and will be reclassified from AOCI to interest expense over the remaining life of the term loans.

(5)There were six interest swaptions equal to $1.0 billion in notional entered into in March 2023, of which $800.0 million was terminated in January 2024 in connection with a senior unsecured note issuance. A total termination premium of $3.4 million we received was deferred in other comprehensive income and will be recognized in interest expense over the 10-year tenor of the notes due 2034. We discontinued cash flow hedge accounting for the remaining swaption of the $200.0 million notional in December 2024 because the forecasted transaction did not occur.

(6)USD fixed rate of 5.625% and EUR weighted average fixed rate of 4.681%.

(7)USD fixed rate of 5.625% and EUR weighted average fixed rate of 4.716%.

(8)Weighted average forward GBP-USD exchange rate of 1.29.

(9)Weighted average exchange rates of 0.83 for EUR-GBP and 1.27 for GBP-USD.

Schedule of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income

The following table summarizes the amount of unrealized gain (loss) on derivatives and foreign currency translation adjustments in other comprehensive income (in thousands):

	Years ended December 31,
Derivatives in Cash Flow Hedging Relationships	2024		2023		2022
Cross-currency swaps	$	—	$	—	$	(5,091)
Interest rate swaps	(5,575)		(11,171)		98,310
Foreign currency forwards	6,546		(13,349)		8,540
Interest rate swaptions	1,471		1,858		—
Total derivatives in cash flow hedging relationships	$	2,442	$	(22,663)	$	101,759
Derivatives in Fair Value Hedging Relationships
Cross-currency swaps - Fair Value	$	(5,224)	$	(14,602)	$	(4,705)
Total derivatives in fair value hedging relationships	$	(5,224)	$	(14,602)	$	(4,705)
Total unrealized (loss) gain on derivatives, net	$	(2,782)	$	(37,265)	$	97,054
Derivatives and Non-derivatives in Net Investment Hedging Relationships
Cross-currency swaps - Net Investment	$	13,569	$	(4,272)	$	—
Foreign currency debt	2,315		—		—
Total unrealized gain (loss) recorded in foreign currency translation adjustment	$	15,884	$	(4,272)	$	—

Schedule of Gain (Loss) on Derivatives Reclassified from Accumulated Other Comprehensive Income (Loss)

The following table summarizes the amount of gain (loss) on derivatives reclassified from AOCI (in thousands):

		Years ended December 31,
Derivatives in Cash Flow Hedging Relationships	Location of Gain Recognized in Income	2024		2023		2022
Cross-currency swaps	Foreign currency and derivative gain (loss), net	$	—	$	—	$	30,814
Interest rate swaps	Interest	31,385		15,794		(4,487)
Foreign currency forwards	Foreign currency and derivative gain (loss), net	3,831		4,251		2,139
Interest rate swaptions	Interest	(13)		(6,859)		—
Total derivatives in cash flow hedging relationships		$	35,203	$	13,186	$	28,466
Derivatives in Fair Value Hedging Relationships
Cross-currency swaps - Fair Value	Foreign currency and derivative gain (loss), net	$	1,806	$	1,415	$	(29,708)
Total derivatives in fair value hedging relationships		$	1,806	$	1,415	$	(29,708)
Derivatives in Net Investment Hedging Relationships
Cross-currency swaps - Net Investment (excluded component)	Foreign currency and derivative gain (loss), net	$	3,444	$	62	$	—
Total derivatives in net investment hedging relationships		$	3,444	$	62	$	—
Net increase (decrease) to net income		$	40,453	$	14,663	$	(1,242)

Schedule of Foreign Currency and Derivative (Loss) Gain

The following table details our foreign currency and derivative gains (losses), net included in income (in thousands):

	Years ended December 31,
	2024		2023		2022
Realized foreign currency and derivative (loss) gain, net:
(Loss) gain on the settlement of undesignated derivatives	$	(33,053)	$	18,051	$	204,392
Gain on the settlement of designated derivatives reclassified from AOCI	9,082		5,728		3,245
(Loss) gain on the settlement of transactions with third parties	1,498		583		(553)
Total realized foreign currency and derivative (loss) gain, net	$	(22,473)	$	24,362	$	207,084
Unrealized foreign currency and derivative gain (loss), net:
Gain (loss) on the change in fair value of undesignated derivatives	$	11,893	$	(5,231)	$	29,316
Gain (loss) on remeasurement of certain assets and liabilities	14,000		(32,545)		(249,711)
Total unrealized foreign currency and derivative gain (loss), net	$	25,893	$	(37,776)	$	(220,395)
Total foreign currency and derivative gain (loss), net	$	3,420	$	(13,414)	$	(13,311)