Derivative Financial Instruments (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Summary of Outstanding Foreign Exchange Derivatives Designated as Net Investment 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 amount in thousands):
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December 31, 2017
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December 31, 2016
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Foreign Currency
Derivatives
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Number of
Instruments
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Notional
Amount
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Foreign Currency
Derivatives
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Number of
Instruments
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Notional
Amount
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Sell GBP Forward
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1 |
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£ 112,700 |
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Sell GBP Forward |
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2 |
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£ 141,900 |
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Sell CAD Forward
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1 |
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C$ 95,100 |
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Sell CAD Forward |
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2 |
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C$ 122,900 |
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Sell EUR Forward |
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1 |
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€ 44,900 |
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| Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of 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):
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December 31, 2017
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Interest Rate
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Number of
Instruments |
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Notional
Amount |
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Strike |
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Index |
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Wtd.-Avg.
Maturity
(Years) |
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Interest Rate Swaps
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4 |
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C$ |
108,094 |
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1.0 |
% |
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CDOR |
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1.4 |
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Interest Rate Caps
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9 |
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$ |
204,248 |
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2.4 |
% |
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USD LIBOR |
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1.5 |
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Interest Rate Caps
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3 |
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C$ |
23,370 |
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2.0 |
% |
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CDOR |
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0.3 |
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December 31, 2016
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Interest Rate
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Number of
Instruments |
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Notional
Amount |
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Strike |
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Index |
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Wtd.-Avg.
Maturity
(Years) |
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Interest Rate Swaps
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4 |
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C$ |
108,271 |
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1.0 |
% |
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CDOR |
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2.4 |
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Interest Rate Caps
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21 |
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$ |
802,256 |
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2.0 |
% |
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USD LIBOR |
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0.4 |
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Interest Rate Caps
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5 |
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C$ |
400,035 |
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2.0 |
% |
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CDOR |
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0.4 |
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Interest Rate Caps
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1 |
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£ |
15,142 |
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2.0 |
% |
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GBP LIBOR |
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0.3 |
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| Summary of Non-designated Hedges |
The following tables summarize our non-designated
hedges (notional amount in thousands):
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December 31, 2017
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Non-designated Hedges
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Number of
Instruments |
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Notional
Amount |
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Buy GBP / Sell EUR Forward
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1 |
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€ |
12,857 |
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December 31, 2016
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Non-designated Hedges
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Number of
Instruments |
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Notional Amount |
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| Interest Rate Caps |
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3 |
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$ |
256,875 |
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| Interest Rate Caps |
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2 |
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C$ |
37,221 |
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| Buy GBP / Sell EUR Forward |
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1 |
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€ |
12,857 |
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| Summary of Fair Value of Derivative Financial Instruments |
The following table summarizes the fair value of
our derivative financial instruments ($ in thousands):
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Fair Value of Derivatives in an
Asset
Position(1) as
of |
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Fair Value of Derivatives in a
Liability
Position(2) as
of |
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December 31, 2017 |
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December 31, 2016 |
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December 31, 2017 |
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December 31, 2016 |
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Derivatives designated as
hedging instruments:
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Foreign exchange contracts
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$ |
— |
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$ |
3,268 |
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$ |
4,872 |
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$ |
210 |
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Interest rate derivatives
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1,214 |
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331 |
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— |
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— |
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Total
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$ |
1,214 |
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$ |
3,599 |
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$ |
4,872 |
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$ |
210 |
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Derivatives not designated as hedging instruments:
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Foreign exchange contracts
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$ |
— |
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$ |
487 |
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$ |
39 |
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$ |
— |
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Interest rate derivatives
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— |
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— |
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— |
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— |
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Total
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$ |
— |
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$ |
487 |
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$ |
39 |
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$ |
— |
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Total Derivatives
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$ |
1,214 |
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$ |
4,086 |
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$ |
4,911 |
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$ |
210 |
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(1) |
Included in other assets in our consolidated
balance sheets.
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(2) |
Included in other liabilities in our consolidated
balance sheets.
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| Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations |
The following table presents the effect of our
derivative financial instruments on our consolidated statements of
operations ($ in thousands):
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Derivatives in
Hedging
Relationships
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Amount of (Loss)
Gain Recognized in
OCI on Derivatives |
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Location of
Gain (Loss)
Reclassified from |
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Amount of
Loss Reclassified from
Accumulated OCI into Income |
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Year Ended
December 31, |
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Accumulated |
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Year Ended
December 31, |
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2017 |
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2016 |
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2015 |
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OCI into Income |
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2017 |
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2016 |
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2015 |
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Net Investment Hedges
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Foreign exchange contracts(1)
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$ |
(22,216 |
) |
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$ |
25,355 |
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$ |
25,356 |
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Interest Expense |
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$ |
— |
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$ |
— |
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$ |
— |
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Cash Flow Hedges
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Interest rate derivatives
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757 |
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89 |
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(1,474 |
) |
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Interest Expense |
(2) |
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(831 |
) |
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(798 |
) |
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(4 |
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Total
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$ |
(21,459 |
) |
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$ |
25,444 |
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$ |
23,882 |
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$ |
(831 |
) |
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$ |
(798 |
) |
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$ |
(4 |
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| (1) |
During the year ended December 31, 2017, we
paid net cash settlements of $14.2 million on our foreign
currency forward contracts. During the years ended
December 31, 2016 and 2015, we received net cash settlements
of $26.8 million and $18.8 million, respectively, on our
foreign currency forward contracts. Those amounts are included as a
component of accumulated other comprehensive loss on our
consolidated balance sheets.
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| (2) |
During the years ended December 31, 2017,
2016, and 2015, we recorded total interest and related expenses of
$234.9 million, $184.3 million, and 152.4 million,
respectively, which included interest expense of $831,000,
$798,000, and $4,000, respectively, related to our cash flow
hedges.
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