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 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):

March 31, 2019					December 31, 2018
Foreign Currency	Number of		Notional		Foreign Currency	Number of		Notional
Derivatives	Instruments		Amount		Derivatives	Instruments		Amount
Sell GBP Forward		3	£	262,000	Sell GBP Forward		3	£	192,300
Sell AUD Forward		4	A$	210,700	Sell AUD Forward		2	A$	187,600
Sell EUR Forward		1	€	179,600	Sell EUR Forward		1	€	185,000
Sell CAD Forward		2	C$	78,700	Sell CAD Forward		1	C$	70,600

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 include interest rate caps and swaps, and may also include interest rate 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):

March 31, 2019
	Number of		Notional						Wtd.-Avg.
Interest Rate Derivatives	Instruments		Amount		Strike			Index	Maturity (Years)
Interest Rate Swaps		2	C$	17,273		1.0	%	CDOR		1.4
Interest Rate Caps		8	$	178,430		2.5	%	USD LIBOR		0.3
Interest Rate Caps		1	C$	21,709		3.0	%	CDOR		0.7

December 31, 2018
	Number of		Notional						Wtd.-Avg.
Interest Rate Derivatives	Instruments		Amount		Strike			Index	Maturity (Years)
Interest Rate Swaps		3	C$	90,472		1.0	%	CDOR		0.5
Interest Rate Caps		9	$	204,248		2.4	%	USD LIBOR		0.5
Interest Rate Caps		2	C$	39,998		2.5	%	CDOR		0.6

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, 2019, we estimate that an additional $63,000 will be reclassified from accumulated other comprehensive income (loss) as an increase to interest income.

During the three months ended March 31, 2019 and 2018, we recorded gains of $660,000 and $215,000, respectively, related to non-designated hedges that were reported as a component of interest expense in our consolidated financial statements.

March 31, 2019
	Number of		Notional
Non-designated Hedges	Instruments		Amount
Buy GBP / Sell EUR Forward		1	€	12,857
Buy CAD / Sell USD Forward		1	C$	4,200
Buy USD / Sell CAD Forward		1	C$	4,200

December 31, 2018
	Number of		Notional
Non-designated Hedges	Instruments		Amount
Buy AUD / Sell USD Forward		1	A$	55,000
Buy USD / Sell AUD Forward		1	A$	55,000
Buy GBP / Sell USD Forward		1	£	23,200
Buy USD / Sell GBP Forward		1	£	23,200
Buy GBP / Sell EUR Forward		1	€	12,857

	Fair Value of Derivatives in an				Fair Value of Derivatives in a
	Asset Position (1) as of				Liability Position (2) as of
	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	4,862	$	8,210	$	1,720	$	1,307
Interest rate derivatives		228		590		—		—
Total	$	5,090	$	8,800	$	1,720	$	1,307
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	294	$	1,116	$	6	$	1,618
Interest rate derivatives		—		—		—		—
Total	$	294	$	1,116	$	6	$	1,618
Total Derivatives	$	5,384	$	9,916	$	1,726	$	2,925

	Amount of (Loss) Gain Recognized in OCI on Derivatives						Location of Gain		Amount of Gain Reclassified from Accumulated OCI into Income
	Three Months Ended March 31,						Reclassified from Accumulated		Three Months Ended March 31,
Derivatives in Hedging Relationships	2019			2018			OCI into Income		2019		2018
Net Investment Hedges
Foreign exchange contracts (1)	$	(1,646	)	$	(2,953	)		Interest Expense	$	—	$	—
Cash Flow Hedges
Interest rate derivatives		(134	)		127			Interest Expense (2)		168		109
Total	$	(1,780	)	$	(2,826	)			$	168	$	109

(1)	During the three months ended March 31, 2019 and 2018, we paid net cash settlements of $2.0 million and $7.4 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.

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, 2019, we were in a net asset position with each such derivative counterparty, and posted collateral of $5.1 million under these derivative contracts. As of December 31, 2018, we were in a net asset position with each such derivative counterparty and did not have any collateral posted under these derivative contracts.