Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Derivative Instruments [Abstract]

Impact of derivative instruments on the statement of operations and OCI

We use foreign currency exchange contracts to manage existing exposures to foreign currency exchange risk. Gains and losses resulting from the changes in fair value of these instruments are recorded in interest expense on the consolidated statement of comprehensive income, and are substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures.

In addition, we have several interest rate cap contracts related to variable rate secured debt agreements. Gains and losses resulting from the changes in fair values of these instruments are also recorded in interest expense.

The following presents the notional amount of derivatives and other financial instruments as of the dates indicated (in thousands):  

	June 30, 2018			December 31, 2017
Derivatives designated as net investment hedges:
Denominated in Canadian Dollars	$	575,000		$	575,000
Denominated in Pounds Sterling	£	891,640		£	550,000
Financial instruments designated as net investment hedges:
Denominated in Canadian Dollars	$	250,000		$	250,000
Denominated in Pounds Sterling	£	1,050,000		£	1,050,000
Derivatives designated as cash flow hedges:
Denominated in Canadian Dollars	$	—		$	36,000
Derivative instruments not designated:
Denominated in U.S. Dollars	$	408,007		$	408,007
Forward purchase contracts denominated in Canadian Dollars	$	(500,000	)	$	—
Forward sales contracts denominated in Canadian Dollars	$	580,000		$	80,000
Forward purchase contracts denominated in Pounds Sterling	£	(350,000	)	£	—
Forward sales contracts denominated in Pounds Sterling	£	350,000		£	—

The following presents the impact of derivative instruments on the Consolidated Statements of Comprehensive Income for the periods presented (in thousands):

		Three Months Ended June 30,					Six Months Ended June 30,
	Location	2018		2017			2018		2017
Gain (loss) on derivative instruments designated as hedges recognized in income	Interest expense	$	4,091	$	1,732		$	3,822	$	4,189
Gain (loss) on derivative instruments not designated as hedges recognized in income	Interest expense	$	734	$	(703	)	$	2,453	$	(935	)
Gain (loss) on foreign exchange contracts and term loans designated as net investment hedge recognized in OCI	OCI	$	150,703	$	(97,539	)	$	88,005	$	(141,880	)