The sole objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair value hedges under the hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks. Refer to Note 2 for additional discussion of the accounting for designated and non-designated hedges.

The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and our affiliates may also have other financial relationships.

Certain of our transactions expose us to interest rate risks, which include a fixed versus floating rate mismatch between our assets and liabilities. We use derivative financial instruments, which includes interest rate caps, and may also include interest rate swaps, options, floors, and other interest rate derivative contracts, to hedge interest rate risk.

The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):


December 31, 2021
Interest Rate Derivatives	Number of Instruments	Notional Amount		Strike		Index	Wtd.-Avg. Maturity (Years)
Interest Rate Caps	1	$	20,670	1.0	%	CDOR	0.2

December 31, 2020
Interest Rate Derivatives	Number of Instruments	Notional Amount		Strike		Index	Wtd.-Avg. Maturity (Years)
Interest Rate Caps	2	$	38,293	1.0	%	CDOR	0.8

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on our floating rate debt. During the twelve months following December 31, 2021, we estimate that an additional $4,000 will be reclassified from accumulated other comprehensive income (loss) as an increase to interest expense.

Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S. dollar. We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar.

The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands):


December 31, 2021				December 31, 2020
Foreign Currency Derivatives	Number of Instruments	Notional Amount		Foreign Currency Derivatives	Number of Instruments	Notional Amount
Buy USD / Sell SEK Forward	1	kr	999,500	Buy USD / Sell EUR Forward	8	€	754,722
Buy USD / Sell EUR Forward	7	€	731,182	Buy USD / Sell GBP Forward	4	£	372,487
Buy USD / Sell GBP Forward	2	£	489,204	Buy USD / Sell AUD Forward	1	A$	92,800
Buy USD / Sell AUD Forward	3	A$	188,600	Buy USD / Sell CAD Forward	1	C$	26,200
Buy USD / Sell CAD Forward	2	C$	22,100
Buy USD / Sell CHF Forward	1	CHF	5,200

The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amount in thousands):


December 31, 2021				December 31, 2020
Non-designated Hedges	Number of Instruments	Notional Amount		Non-designated Hedges	Number of Instruments	Notional Amount
Buy GBP / Sell EUR Forward	1	€	8,410	Buy EUR / Sell GBP Forward	2	£	146,207
Buy GBP / Sell USD Forward	3	£	170,600	Buy USD / Sell EUR Forward	1	€	8,410
Buy USD / Sell GBP Forward	3	£	170,600
Buy EUR / Sell USD Forward	2	€	165,560
Buy USD / Sell EUR Forward	3	€	165,560
Buy CHF / Sell USD Forward	1	CHF	20,300
Buy USD / Sell CHF Forward	1	CHF	20,300


		Increase (Decrease) to Net Interest Income Recognized from Foreign Exchange Contracts
Foreign Exchange Contracts in Hedging Relationships	Location of Income (Expense) Recognized	Year Ended December 31, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
Designated Hedges	Interest Income(1)	$	7,296	$	4,382	$	—
Non-Designated Hedges	Interest Income(1)	(342)		(522)		—
Non-Designated Hedges	Interest Expense(2)	(6,911)		(4,357)		1,060
Total		$	43	$	(497)	$	1,060

(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms.


	Fair Value of Derivatives in an Asset Position(1) as of				Fair Value of Derivatives in a Liability Position(2) as of
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	23,423	$	521	$	1,383	$	55,758
Interest rate derivatives	—		1		—		—
Total	$	23,423	$	522	$	1,383	$	55,758
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	7,108	$	—	$	4,507	$	3,157
Interest rate derivatives	—		—		—		—
Total	$	7,108	$	—	$	4,507	$	3,157
Total Derivatives	$	30,531	$	522	$	5,890	$	58,915


Derivatives in Hedging Relationships	Amount of Gain (Loss) Recognized in OCI on Derivatives						Location of Gain (Loss) Reclassified from	Amount of Loss Reclassified from Accumulated OCI into Income
	Year Ended December 31,						Accumulated	Year Ended December 31,
	2021		2020		2019		OCI into Income	2021		2020		2019
Net Investment Hedges
Foreign exchange contracts(1)	$	81,603	$	(59,609)	$	(5,592)	Interest Expense	$	—	$	—	$	—
Cash Flow Hedges
Interest rate derivatives	(5)		(94)		(144)		Interest Expense(2)	(10)		7		195
Total	$	81,598	$	(59,703)	$	(5,736)		$	(10)	$	7	$	195

(1)During the years ended December 31, 2021, and December 31, 2020, we paid net cash settlements of $1.4 million and $43.0 million on our foreign currency contracts. During the year ended December 31, 2019, we received net cash settlements of $43.1 million on our foreign currency forward contracts. Those amounts are included as a component of accumulated other comprehensive loss on our consolidated balance sheets.

(2)During the year ended December 31, 2021, we recorded total interest and related expenses of $340.2 million, which included interest expense of $10,000 related to our cash flow hedges. During the years ended December 31, 2020 and December 31, 2019, we recorded total interest and related expenses of $347.5 million and $458.5 million, respectively, which were reduced by $7,000 and $195,000, respectively, related to income generated by our cash flow hedges.

We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions. As of December 31, 2021, we were in a net asset position with both of our derivative counterparties and did not have any collateral posted under these derivative contracts, which amount is included in other assets on our consolidated balance sheet. As of December 31, 2020,