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Derivatives and Hedging
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging
Net Investment Hedges
We have designated certain derivative instruments and a portion of our foreign currency denominated debt, a non-derivative financial instrument, as hedges of the foreign currency exchange rate exposure of our Euro-denominated net investment in a European subsidiary. We apply 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 AOCL within foreign currency translation and would only be reclassified to earnings if the European subsidiary were liquidated, or otherwise disposed. Upon settlement, the cash paid or received generally is reflected in investing activities in the statement of cash flows.
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 (in thousands):
December 31, 2023December 31, 2022
InstrumentBalance sheet locationNotionalBalanceNotionalBalance
Net investment hedges:
Forward contractsPrepaid expenses and other current assets$606,950 $37,676 $606,950 $46,670 
Forward contractOther current liabilities$106,800 $4,383 $106,800 $3,064 
Foreign currency debt Current portion of debt and long-term debt€700,000 $772,660 €700,000 $749,280 
The table below presents pre-tax gains and losses related to net investment hedges for the year ended December 31:
(Loss) Gain Recognized in AOCL Before ReclassificationsGain Recognized in Interest Expense For Excluded Components
(in thousands)202320222021202320222021
Net Investment Hedges:
Forward contracts$(22,946)$103,240 $56,362 $12,634 $27,923 $26,295 
Foreign currency debt (23,380)43,540 68,250 — — — 
Total$(46,326)$146,780 $124,612 $12,634 $27,923 $26,295