Derivative Financial Instruments and Hedging Activities |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Risk Management Objective of Using Derivatives Our objectives in using interest rate derivatives are to add predictability to interest expense and to manage our exposure to interest rate movements. To accomplish these objectives, we primarily use interest rate swaps, interest rate caps and treasury locks as part of our interest rate management strategy. Interest rate swaps primarily involve the receipt of variable-rate and fixed-rate amounts from a counterparty in exchange for us making fixed-rate or variable-rate payments over the life of the agreements without exchange of the underlying notional amounts. Changes in fair value of derivatives designated as cash flow hedges are recognized in other comprehensive income (loss) and subsequently reclassified into earnings as an increase or decrease to interest expense. During the three and six months ended June 30, 2026, we reclassified gains of $0.8 million and $1.8 million, respectively, out of other comprehensive income (loss) into interest expense. During the three and six months ended June 30, 2025, we reclassified gains of 1.0 million and $2.0 million, respectively. As of June 30, 2026, we estimate that during the next 12 months, we will reclassify into earnings approximately $2.1 million of the unrealized gain in other comprehensive income (loss). Changes in fair value of derivatives not designated in a hedge relationship, or economic hedges, are recognized in gain (loss) on derivative instruments, net, in our condensed consolidated statements of operations. During the three and six months ended June 30, 2026 and 2025, gain (loss) on derivative instruments, net was $20.3 million, $35.8 million, ($1.9) million and ($15.6) million, respectively. During the three months ended June 30, 2026, five interest rate swaps with a total notional value of $400.0 million matured. The following tables summarize our derivative financial instruments (dollars in thousands):
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