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Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments DERIVATIVE FINANCIAL INSTRUMENTS
The 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 also have other financial relationships.
Net Investment Hedges of Foreign Currency Risk
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.
Designated Hedges of Foreign Currency Risk
The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amounts in thousands):
March 31, 2024December 31, 2023
Foreign Currency Derivatives
Number of
 Instruments
Notional
 Amount
Foreign Currency Derivatives
Number of
 Instruments
Notional
 Amount
Buy USD / Sell SEK Forward2kr 972,981 Buy USD / Sell SEK Forward2kr 973,246 
Buy USD / Sell EUR Forward9€674,926 Buy USD / Sell GBP Forward7£696,919 
Buy USD / Sell GBP Forward8£668,465 Buy USD / Sell EUR Forward8€673,644 
Buy USD / Sell AUD Forward8A$483,758 Buy USD / Sell AUD Forward10A$471,989 
Buy USD / Sell DKK Forward2kr.195,565 Buy USD / Sell DKK Forward2kr.195,674 
Buy USD / Sell CHF Forward1CHF7,352 Buy USD / Sell CHF Forward4CHF8,352 
Non-designated Hedges of Foreign Currency Risk
The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amounts in thousands):
March 31, 2024December 31, 2023
Non-designated Hedges
Number of
 Instruments
Notional
 Amount
Non-designated Hedges
Number of
 Instruments
Notional
 Amount
Buy GBP / Sell USD Forward4£48,700 Buy SEK / Sell USD Forward1kr 30,800 
Buy USD / Sell GBP Forward4£48,700 Buy USD / Sell SEK Forward1kr 30,800 
Buy GBP / Sell USD Forward2£26,900 
Buy USD / Sell GBP Forward2£26,900 
Buy AUD / Sell USD Forward1A$7,600 
Buy USD / Sell AUD Forward1A$7,600 
Cash Flow Hedges of Interest Rate Risk
Certain of our financing transactions expose us to a fixed versus floating rate mismatch between our assets and liabilities. We use derivative financial instruments, which include interest rate swaps, and may also include interest rate caps, interest rate options, floors, and other interest rate derivative contracts, to hedge interest rate risk associated with our borrowings where there is potential for an index mismatch.
The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):
March 31, 2024
Interest Rate DerivativesNumber of InstrumentsNotional AmountFixed RateIndexWtd. Avg. Maturity (Years)
Interest Rate Swaps1$229,858 4.60%SOFR0.6
December 31, 2023
Interest Rate DerivativesNumber of InstrumentsNotional AmountFixed RateIndexWtd. Avg. Maturity (Years)
Interest Rate Swaps1$229,858 4.60%SOFR0.9
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 March 31, 2024, we estimate that an additional $723,000 will be reclassified from accumulated other comprehensive income (loss) as a decrease to interest expense.
Financial Statement Impact of Hedges of Foreign Currency and Interest Rate Risks
The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):
 Increase (Decrease) to Net Interest Income Recognized from Derivatives
Three Months Ended March 31,
Derivatives in Hedging Relationships
Location of Income
 (Expense) Recognized
20242023
Designated Hedges
Interest Income(1)
$4,412 $8,407 
Designated Hedges
Interest Expense(2)
425—
Non-Designated Hedges
Interest Income(1)
(6)17
Non-Designated Hedges
Interest Expense(3)
719
Total $4,838 $8,443 
(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and prevailing US interest rates. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD-equivalent interest rates.
(2)Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest rate swap, which is designated as a cash flow hedge.
(3)Represents the spot rate movement in our non-designated foreign currency hedges, which are marked-to-market and recognized in interest expense.
Valuation and Other Comprehensive Income
The following table summarizes the fair value of our derivative financial instruments ($ in thousands):
 
Fair Value of Derivatives in an Asset
 Position(1) as of
Fair Value of Derivatives in a Liability Position(2) as of
March 31, 2024December 31, 2023March 31, 2024December 31, 2023
Derivatives designated as hedging instruments:
Foreign exchange contracts$24,638 $30 $868 $92,922 
Interest rate derivatives724 317 — — 
Total derivatives designated as hedging instruments$25,362 $347 $868 $92,922 
Derivatives not designated as hedging instruments:
Foreign exchange contracts$560 $1,543 $122 $1,895 
Interest rate derivatives— — — — 
Total derivatives not designated as hedging instruments$560 $1,543 $122 $1,895 
Total Derivatives$25,922 $1,890 $990 $94,817 
(1)Included in other assets in our consolidated balance sheets.
(2)Included in other liabilities in our consolidated balance sheets.
The following table presents the effect of our derivative financial instruments on our consolidated statements of comprehensive income and operations ($ in thousands):
Derivatives in Hedging Relationships
Amount of (Loss) Gain Recognized in
OCI on Derivatives		Location of
 Gain (Loss)
 Reclassified
from Accumulated OCI into Income		Amount of
Gain (Loss) Reclassified from
 Accumulated OCI into Income
Three Months Ended March 31,Three Months Ended March 31,
2024202320242023
Net Investment Hedges 
Foreign exchange contracts(1)
$45,741 $(24,052)Interest Expense$— $— 
Cash Flow Hedges 
Interest rate derivatives832—
Interest Expense(2)
425— 
Total$46,573 $(24,052) $425 $— 
(1)During the three months ended March 31, 2024 and 2023, we paid net cash settlements of $67.3 million and $131.3 million on our foreign currency forward contracts, respectively. Those amounts are included as a component of accumulated other comprehensive income on our consolidated balance sheets.
(2)During the three months ended March 31, 2024, we recorded total interest and related expenses of $343.7 million which was reduced by $425,000 related to income generated by our cash flow hedges.

Credit-Risk Related Contingent Features
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 March 31, 2024, we were in a net asset position with our counterparties. As of March 31, 2024, we had no collateral posted with our counterparties. As of December 31, 2023, we were in a net liability position with our counterparties. As of December 31, 2023, we had $103.5 million of collateral posted with our counterparties.