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Derivatives and Hedging Instruments
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Instruments Derivatives and Hedging Instruments
The Company may periodically enter into derivative financial instruments to manage risks related to interest rates and foreign currency. Certain of the Company’s derivative financial instruments qualify for hedge accounting treatment.
The following table summarizes the fair value of derivative instruments as recorded in the Company’s condensed consolidated statements of financial condition (in thousands):
 June 30, 2024December 31, 2023
Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate cap contractsOther assets$2,635 Other assets$14,564 
Interest rate swap agreementsOther assets138 — — 
Interest rate swap agreementsOther liabilities(6,570)Other liabilities(22,510)
Cross-currency swap agreements— — Other assets361 
Cross-currency swap agreementsOther liabilities(41,631)Other liabilities(28,039)
Derivatives not designated as hedging instruments:
Interest rate cap contractsOther assets782 Other assets2,386 
Foreign currency exchange contractsOther assets873 — — 
Derivatives Designated as Hedging Instruments
The Company may periodically enter into interest rate swap agreements and interest rate cap contracts to reduce its exposure to fluctuations in interest rates on variable interest rate debt and their impact on earnings and cash flows. Under the swap agreements, the Company receives floating interest rate payments and makes interest payments based on fixed interest rates. Under the cap contracts, the Company receives floating interest rate payments and makes interest payments based on capped interest rates. The Company designates its interest rate swap and interest rate cap instruments as cash flow hedges at inception.
The Company uses cross-currency swap agreements to manage foreign currency exchange risk by converting fixed-rate Euro-denominated borrowings and fixed-rate GBP-denominated borrowings including periodic interest payments and the payment of principal at maturity to fixed-rate USD debt. The cross-currency swap agreements are accounted for as fair value hedges.
The following tables summarize the terms of the derivative instruments designated as hedging instruments as recorded in the Company’s consolidated statements of financial condition:

June 30, 2024
Effective dateMaturity DateHedge DesignationNotional AmountReceive Floating Rate Index
Interest rate cap contracts
2021 Cap(1)
November 2021September 2024Cash flow hedge$316.2 millionSONIA
2024 CapSeptember 2024September 2026Cash flow hedge$322.6 millionSONIA
Interest rate swap agreements
2023 Euro IR SwapOctober 2023January 2028Cash flow hedge$107.4 million3-month EURIBOR
2024 Euro IR Swaps
June 2024January 2028Cash flow hedge$445.7 million3-month EURIBOR
         2023 SOFR IR Swaps
November 2023October 2026Cash flow hedge$150.0 million1-month SOFR CME Term
Cross-currency swap agreements
2020 Euro SwapsSeptember 2020October 2025Fair value hedge$375.9 million—
2023 GBP SwapsJuly 2023February 2026Fair value hedge$379.5 million—
______________________
(1)The total notional amount of the 2021 Cap was $442.7 million, of which $316.2 million was hedge designated and $126.5 million was not hedge designated as of June 30, 2024.
December 31, 2023
Effective dateMaturity DateHedge DesignationNotional AmountReceive Floating Rate Index
Interest rate cap contracts
2019 CapJanuary 2020June 2024Cash flow hedge$441.5 million3-month EURIBOR
2021 Cap(1)
November 2021September 2024Cash flow hedge$318.3 millionSONIA
2024 CapSeptember 2024September 2026Cash flow hedge$324.6 millionSONIA
Interest rate swap agreements
2023 Euro IR SwapOctober 2023January 2028Cash flow hedge$110.4 million3-month EURIBOR
2024 Euro IR Swaps
June 2024January 2028Cash flow hedge$458.1 million3-month EURIBOR
         2023 SOFR IR Swaps
November 2023October 2026Cash flow hedge$150.0 million1-month SOFR CME Term
Cross-currency swap agreements
2020 Euro SwapsSeptember 2020October 2025Fair value hedge$386.3 million—
2023 GBP SwapsJuly 2023February 2026Fair value hedge$381.9 million—
_______________________
(1)The total notional amount of the 2021 Cap was $445.6 million, of which $318.3 million was hedge designated and $127.3 million was not hedge designated as of December 31, 2023.
The Company expects to reclassify approximately $2.5 million of net derivative gain from OCI into earnings relating to its cash flow designated derivatives within the next 12 months.
The following tables summarize the effects of derivatives designated as hedging instruments in the Company’s condensed consolidated financial statements (in thousands):
Derivatives Designated as Hedging InstrumentsGain (Loss) Recognized in OCILocation of Gain (Loss) Reclassified from OCI into Income (Loss)
Gain (Loss) Reclassified from OCI into Income
Three Months Ended June 30,Three Months Ended June 30,
2024202320242023
Interest rate swap agreements$6,199 $— Interest expense$655 $— 
Interest rate cap contracts(5,777)3,423 Interest expense(664)(391)
Cross-currency swap agreements(4,289)(1,896)Interest expense(1,757)(1,395)
Other (expense) income
(1,370)1,351 
Derivatives Designated as Hedging InstrumentsGain (Loss) Recognized in OCILocation of Gain (Loss) Reclassified from OCI into Income (Loss)
Gain (Loss) Reclassified from OCI into Income
Six Months Ended June 30,Six Months Ended June 30,
2024202320242023
Interest rate swap agreements$17,273 $— Interest expense$1,195 $— 
Interest rate cap contracts(11,828)(3,501)Interest expense(1,376)(841)
Cross-currency swap agreements(17,299)170 Interest expense(3,537)(2,903)
Other (expense) income
(12,880)6,504 
Derivatives Not Designated as Hedging Instruments
From time to time, the Company enters into currency exchange forward contracts to reduce the effects of currency exchange rate fluctuations. These derivative contracts generally mature within one to six months and are not designated as hedge instruments for accounting purposes. The Company also holds an interest rate cap contract, the 2021 Cap, that was partially hedge designated. The gains or losses on these unhedged derivative contracts are recognized in other income or expense based on the changes in fair value.
The following table summarizes the effects of derivatives not designated as hedging instruments on the Company’s condensed consolidated statements of income for the three and six months ended June 30, 2024 and 2023 (in thousands):
Derivatives Not Designated as Hedging Instruments
Location of Gain Recognized in Income on Derivative
Amount of Gain Recognized in Income
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Interest rate cap contract
Other income
$79 $— $274 $— 
Foreign currency exchange contract
Other income
873 — 873 —