Derivatives |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives | 5. Derivatives Interest Rate Swaps The Company enters into interest rate swap transactions from time to time to hedge fixed rate debt obligations and certain fixed rate debt investments. The Company’s interest rate swaps are all with one counterparty and are centrally cleared through a registered commodities exchange. Refer to the Consolidated Schedule of Investments for additional disclosure regarding these interest rate swaps. Cash flows related to the Company's derivatives are included within operating activities on the Consolidated Statements of Cash Flows. The following tables present the amounts paid and received on the Company’s interest rate swap transactions for the three months ended March 31, 2026 and 2025:
For the three months ended March 31, 2026 and 2025, the Company recognized $5.5 million of unrealized losses and $17.6 million of unrealized gains, respectively, on interest rate swaps designated as hedging instruments in the Consolidated Statements of Operations. For the three months ended March 31, 2026 and 2025, this amount was offset by an increase of $2.1 million and $3.4 million, respectively, for a change in carrying value of the 2026 Notes, a decrease of $2.4 million and an increase of $3.6 million, respectively, for a change in carrying value of the 2028 Notes, a decrease of $2.7 million and an increase of $5.0 million, respectively, for a change in carrying value of the 2029 Notes and a decrease of $2.5 million and an increase of $5.6 million, respectively, for a change in carrying value of the 2030 Notes. As of March 31, 2026, the swap transactions had a fair value of $4.7 million, which is netted against cash collateral of $28.1 million. Cash is pledged as collateral under the Company’s derivative agreements and is included in restricted cash as a component of cash and cash equivalents on the Company’s Consolidated Balance Sheet. As of December 31, 2025, the swap transactions had a fair value of $10.3 million, which is netted against cash collateral of $16.7 million. Cash is pledged as collateral under the Company’s derivative agreements and is included in restricted cash as a component of cash and cash equivalents on the Company’s Consolidated Balance Sheet. The Company is required under the terms of its derivatives agreements to pledge assets as collateral to secure its obligations underlying the derivatives. The amount of collateral required varies over time based on the mark-to-market value, notional amount and remaining term of the derivatives, and may exceed the amount owed by the Company on a mark-to-market basis. Any failure by the Company to fulfill any collateral requirement (e.g., a so-called “margin call”) may result in a default. In the event of a default by a counterparty, the Company would be an unsecured creditor to the extent of any such overcollateralization. The Company may enter into other derivative instruments and incur other exposures with the same or other counterparties in the future. |
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