XML 62 R43.htm IDEA: XBRL DOCUMENT v3.24.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Outstanding Foreign Exchange Derivatives
The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amounts in thousands):
September 30, 2024December 31, 2023
Foreign Currency Derivatives
Number of
 Instruments
Notional
 Amount
Foreign Currency Derivatives
Number of
 Instruments
Notional
 Amount
Buy USD / Sell SEK Forward2kr 973,345 Buy USD / Sell SEK Forward2kr 973,246 
Buy USD / Sell GBP Forward9£663,345 Buy USD / Sell GBP Forward7£696,919 
Buy USD / Sell EUR Forward6€594,609 Buy USD / Sell EUR Forward8€673,644 
Buy USD / Sell AUD Forward7A$385,545 Buy USD / Sell AUD Forward10A$471,989 
Buy USD / Sell CHF Forward1CHF6,752 Buy USD / Sell DKK Forward2kr.195,674 
Buy USD / Sell DKK Forward2kr.2,185 Buy USD / Sell CHF Forward4CHF8,352 
The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amounts in thousands):
September 30, 2024December 31, 2023
Non-designated Hedges
Number of
 Instruments
Notional
 Amount
Non-designated Hedges
Number of
 Instruments
Notional
 Amount
Buy DKK / Sell USD Forward1kr 192,750 Buy SEK / Sell USD Forward1kr 30,800 
Buy USD / Sell DKK Forward1kr 192,750 Buy USD / Sell SEK Forward1kr 30,800 
Buy GBP / Sell USD Forward2£127,400 Buy GBP / Sell USD Forward2£26,900 
Buy USD / Sell GBP Forward2£127,400 Buy USD / Sell GBP Forward2£26,900 
Buy AUD / Sell USD Forward1A$112,500 Buy AUD / Sell USD Forward1A$7,600 
Buy USD / Sell AUD Forward1A$112,500 Buy USD / Sell AUD Forward1A$7,600 
Buy EUR / Sell USD Forward2€68,900 
Buy USD / Sell EUR Forward2€68,900 
Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk
The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):
September 30, 2024
Interest Rate DerivativesNumber of InstrumentsNotional AmountFixed RateIndexWtd. Avg. Maturity (Years)
Interest Rate Swaps1$229,858 4.60%SOFR0.1
December 31, 2023
Interest Rate DerivativesNumber of InstrumentsNotional AmountFixed RateIndexWtd. Avg. Maturity (Years)
Interest Rate Swaps1$229,858 4.60%SOFR0.9
Schedule of Derivative Instruments in Statement of Operations
The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):
 Increase (Decrease) to Net Interest Income Recognized from Derivatives
Three Months Ended September 30,Nine Months Ended September 30,
Derivatives in Hedging Relationships
Location of Income
 (Expense) Recognized
2024202320242023
Designated Hedges
Interest Income(1)
$4,442 $5,120 $13,309 $20,599 
Designated Hedges
Interest Expense(2)
399 384 1,244 459 
Non-Designated Hedges
Interest Income(1)
(22)2 (32)70 
Non-Designated Hedges
Interest Expense(3)
(14)(2)(7)(64)
Total $4,805 $5,504 $14,514 $21,064 
(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and prevailing US interest rates. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD-equivalent interest rates.
(2)Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest rate swap, which is designated as a cash flow hedge.
(3)Represents the spot rate movement in our non-designated foreign currency hedges, which are marked-to-market and recognized in interest expense.
Summary of Fair Value of Derivative Financial Instruments
The following table summarizes the fair value of our derivative financial instruments ($ in thousands):
 
Fair Value of Derivatives in an Asset
 Position(1) as of
Fair Value of Derivatives in a Liability Position(2) as of
September 30, 2024December 31, 2023September 30, 2024December 31, 2023
Derivatives designated as hedging instruments:
Foreign exchange contracts$30 $30 $41,011 $92,922 
Interest rate derivatives65 317 — — 
Total derivatives designated as hedging instruments$95 $347 $41,011 $92,922 
Derivatives not designated as hedging instruments:
Foreign exchange contracts$6,931 $1,543 $9,245 $1,895 
Interest rate derivatives— — — — 
Total derivatives not designated as hedging instruments$6,931 $1,543 $9,245 $1,895 
Total Derivatives$7,026 $1,890 $50,256 $94,817 
(1)Included in other assets in our consolidated balance sheets.
(2)Included in other liabilities in our consolidated balance sheets.
Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Comprehensive Income And Operations
The following table presents the effect of our derivative financial instruments on our consolidated statements of comprehensive income and operations ($ in thousands):
Derivatives in Hedging Relationships
Amount of Gain (Loss) Recognized in
OCI on Derivatives
Location of
 Gain (Loss)
 Reclassified
from Accumulated OCI into Income
Amount of
Gain Reclassified from
 Accumulated OCI into Income
Three Months Ended September 30, 2024Nine Months Ended September 30, 2024Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
Net Investment Hedges 
Foreign exchange contracts(1)
$(89,829)$(47,120)Interest Expense$— $— 
Cash Flow Hedges 
Interest rate derivatives(81)993
Interest Expense(2)
3991,245
Total$(89,910)$(46,127) $399 $1,245 
(1)During the three months ended September 30, 2024, we paid net cash settlements of $62.2 million on our foreign currency forward contracts. During the nine months ended September 30, 2024, we paid net cash settlements of $83.8 million on our foreign currency forward contracts. Those amounts are included as a component of accumulated other comprehensive income on our consolidated balance sheets.
(2)During the three and nine months ended September 30, 2024, we recorded total interest and related expenses of $321.7 million and $1.0 billion, respectively, which was reduced by $399,000 and $1.2 million, respectively, related to income generated by our cash flow hedges.