Derivatives and Hedging

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table summarizes the location and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships:


		December 31, 2020				December 31, 2019
Instrument	Balance sheet location	Notional		Balance		Notional		Balance
Cash flow hedges:
Interest rate swaps	Other current liabilities	$	—	$	—	$	800,000	$	24,792
Net investment hedges:
Forward contracts	Prepaid expenses and other current assets	$	800,000	$	7,668	$	925,810	$	39,965
Forward contracts	Other current liabilities	$	360,990	$	19,442	$	—	$	—
Foreign currency debt	Long-term debt	€	700,000	$	861,070	€	700,000	$	784,000

Cash Flow Hedges

The Company uses interest rate swaps to mitigate variability in forecasted interest payments on a portion of the Company’s U.S. dollar-denominated unsecured variable rate debt. The interest rate swaps effectively convert a portion of the floating rate interest payment into a fixed rate interest payment. The Company designates the interest rate swaps as qualifying hedging instruments and accounts for them as cash flow hedges. On May 1, 2020, the Company dedesignated its interest rate swaps and modified them to match the terms of its modified debt agreement and as a result the $48,492 payable as of that date was deemed a financing transaction. The Company redesignated the portion of the modified interest rate swap that is not related to the financing agreement as a qualifying hedging instrument. Gains and losses from fair value adjustments on the qualifying hedging instruments are initially classified in AOCL and are reclassified to interest expense on the dates interest payments are accrued. On October 30, 2020 the Company terminated its interest rate swaps and settled the outstanding balances through cash payments totaling $41,000, which were primarily classified in financing activities on the Consolidated Statement of Cash Flows because they primarily related to the financing agreement. The remaining amount in AOCL is being amortized to interest expense on a straight-line basis over the remaining life of the hedged instrument.

Hedges of Net Investments in Foreign Operations

The Company has designated certain derivative instruments and a portion of its foreign currency denominated debt, a non-derivative financial instrument, as hedges of the foreign currency exchange rate exposure of the Company's Euro-denominated net investment in a European subsidiary. The Company applies the spot method to assess the hedge effectiveness of the derivative instruments and this assessment for each instrument excludes the initial value related to the difference at contract inception between the foreign exchange spot rate and the forward rate (i.e., the forward points). The initial value of this excluded component is recognized as a reduction to interest expense in a systematic and rational manner over the term of the derivative instrument. All other changes in value for the net investment hedges are included in accumulated other comprehensive loss and would only be reclassified to earnings if the European subsidiary were liquidated, or otherwise disposed.

The table below presents pre-tax gains and losses related to cash flow hedges and net investment hedges:


	(Loss) Gain Recognized in AOCL Before Reclassifications						Gain Recognized in Interest Expense For Excluded Components
	2020		2019		2018		2020		2019		2018
Year Ended December 31,
Cash Flow Hedges:
Interest rate contract	$	(29,464)	$	(21,972)	$	(7,896)	$	—	$	—	$	—
Net Investment Hedges:
Cross-currency swap	—		2,936		6,006		—		2,294		6,740
Forward contracts	(85,390)		20,679		—		27,146		17,892		—
Foreign currency debt	(77,070)		17,010		38,850		—		—		—
Total	$	(191,924)	$	18,653	$	36,960	$	27,146	$	20,186	$	6,740

Amounts reclassified from accumulated other comprehensive loss to interest expense for the periods presented were not material.