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DERIVATIVE AND HEDGING INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE AND HEDGING INSTRUMENTS DERIVATIVE AND HEDGING INSTRUMENTS
The Company is exposed to various market risks, including the potential loss arising from adverse changes in interest rates and foreign exchange rates. The Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates and foreign exchange rates. The Company’s derivative financial instruments are used to manage differences in the amount of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.
Certain of the Company’s foreign operations expose the Company to fluctuations of foreign interest rates and exchange rates. These fluctuations may impact the value in the Company’s functional currency, the U.S. dollar, of the Company’s investment in foreign operations, the cash receipts and payments related to these foreign operations and payments of interest and principal under Canadian dollar denominated debt. The Company enters into derivative financial instruments to protect the value of its foreign investments and fix a portion of the interest payments for certain debt obligations. The Company does not enter into derivatives for speculative purposes.
Cash Flow Hedges
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. As of June 30, 2026, approximately $5.6 million of gains, which are included in accumulated other comprehensive income, are expected to be reclassified into earnings in the next 12 months. During each of the three and six months ended June 30, 2025, the Company reclassified $17.2 million of gain related to six previously terminated interest rate swaps from accumulated other comprehensive loss to other income as the related forecasted transactions were determined to be probable not to occur.
Net Investment Hedges
The Company is exposed to fluctuations in foreign exchange rates on investments it holds in Canada. The Company uses Canadian dollar denominated debt to hedge its exposure to changes in foreign exchange rates on these foreign investments.
The following presents the notional amount of derivative instruments (in thousands):
June 30, 2026December 31, 2025
Derivatives designated as cash flow hedges:
Denominated in U.S. Dollars$930,000 $930,000 
Denominated in Canadian Dollars$150,000 $150,000 
Financial instruments designated as net investment hedges:
Denominated in Canadian Dollars$184,800 $183,700 
Derivative and Financial Instruments Designated as Hedging Instruments
The following is a summary of the derivative and financial instruments designated as hedging instruments held by the Company (dollars in thousands):
Count as of June 30, 2026
Fair Value as of
Maturity Dates as of June 30, 2026
TypeDesignationJune 30, 2026December 31, 2025Balance Sheet Location
Assets:
Interest rate swapsCash flow11 $14,724 $3,378 2028 - 2030Accounts receivable, prepaid expenses and other assets, net
Liabilities:
Interest rate swapsCash flow— $— $1,281 —Accounts payable and accrued liabilities
CAD borrowings under Revolving Credit FacilityNet investment1 24,475 24,584 2027Revolving credit facility
CAD Term LoanNet investment1 105,495 109,425 2028Term loans, net
$129,970 $135,290 
The following presents the effect of the Company’s derivative and financial instruments designated as hedging instruments on the consolidated statements of (loss) income and the consolidated statements of equity (in thousands):
Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cash Flow Hedges:
Interest rate products$8,117 $(2,528)$14,803 $(7,196)
Net Investment Hedges:
Foreign currency products— (1,586)— (1,418)
CAD borrowings under Revolving Credit Facility505 (330)880 (558)
CAD Term Loan2,175 (5,355)3,930 (5,490)
$10,797 $(9,799)$19,613 $(14,662)
Gain Reclassified from Accumulated Other Comprehensive Income (Loss) into Income
Three Months Ended June 30,Six Months Ended June 30,
Income Statement Location2026202520262025
Cash Flow Hedges:
Interest rate productsInterest expense$724 $1,323 $1,531 $2,712 
During the three and six months ended June 30, 2026 and 2025, no cash flow hedges were determined to be ineffective.
Offsetting Derivatives
The Company enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives (in thousands):
As of June 30, 2026
Gross Amounts of Recognized Assets / LiabilitiesGross Amounts Offset in the Balance SheetNet Amounts of Assets / Liabilities Presented in the Balance SheetGross Amounts Not Offset in the Balance Sheet
Financial InstrumentsCash Collateral ReceivedNet Amount
Offsetting Assets:
Derivatives$14,724 $— $14,724 $— $— $14,724 
Offsetting Liabilities:
Derivatives$— $— $— $— $— $— 
As of December 31, 2025
Gross Amounts of Recognized Assets / LiabilitiesGross Amounts Offset in the Balance SheetNet Amounts of Assets / Liabilities Presented in the Balance SheetGross Amounts Not Offset in the Balance Sheet
Financial InstrumentsCash Collateral ReceivedNet Amount
Offsetting Assets:
Derivatives$3,378 $— $3,378 $(212)$— $3,166 
Offsetting Liabilities:
Derivatives$1,281 $— $1,281 $(212)$— $1,069 
Credit Risk-related Contingent Features
The Company has agreements with each of its derivative counterparties that contain a provision pursuant to which the Company could be declared in default on the derivative obligation if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender. As of June 30, 2026, the Company had no derivatives in a net liability position. As of June 30, 2026, the Company has not posted any collateral related to these agreements.