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Derivatives and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of net investment hedges
The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 was as follows (in thousands):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
Three Months Ended
March 31,
20212020
Foreign currency debt$68,740 $99,102 
Cross-currency interest rate swaps (included component) (1)
141,228 14,140 
Cross-currency interest rate swaps (excluded component) (2)
(40,529)31,704 
Foreign currency forward contracts (included component) (1)
708 — 
Foreign currency forward contracts (excluded component) (3)
28 — 
Total
$170,175 $144,946 
Amount of gain or (loss) recognized in earnings:
Location of gain or (loss)Three Months Ended
March 31,
20212020
Cross-currency interest rate swaps (excluded component) (2)
Interest expense
$10,049 $5,089 
Foreign currency forward contracts (excluded component) (3)
Interest expense
164 — 
Total
$10,213 $5,089 
(1)Included component represents foreign exchange spot rates.
(2)Excluded component represents cross-currency basis spread and interest rates.
(3)Excluded component represents foreign currency forward points.
Summary of cash flow hedges
The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 was as follows (in thousands):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
Three Months Ended
March 31,
20212020
Foreign currency forward and option contracts (included component) (1)
$31,374 $28,025 
Foreign currency option contracts (excluded component) (2)
196 1,318 
Interest rate locks
5,801 (26,232)
Total
$37,371 $3,111 
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
Three Months Ended
March 31,
Location of gain or (loss)20212020
Foreign currency forward contracts
Revenues
$(12,969)$21,219 
Foreign currency forward contracts
Costs and operating expenses
7,204 (11,000)
Interest rate locks
Interest Expense
(805)168 
Total
$(6,570)$10,387 
Amount of gain or (loss) excluded from effectiveness testing included in income:
Three Months Ended
March 31,
Location of gain or (loss)20212020
Foreign currency option contracts (excluded component) (2)
Revenues
$(181)$(521)
Total
$(181)$(521)
(1)Included component represents foreign exchange spot rates.
(2)Excluded component represents option's time value.
Schedule of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations
The following table presents the effect of derivatives not designated as hedging instruments in our condensed consolidated statements of operations (in thousands):
Amount of gain or (loss) recognized in earnings:
Three Months Ended
March 31,
Location of gain or (loss)20212020
Embedded derivatives
Revenues
$4,495 $7,451 
Economic hedge of embedded derivatives
Revenues
(4,213)(7,902)
Foreign currency forward contracts
Other income (expense)
56,800 133,824 
    Total
$57,082 $133,373 
Schedule of derivative instruments recognized in the Company's condensed consolidated balance sheets
The following table presents the fair value of derivative instruments recognized in our condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (in thousands):
March 31, 2021December 31, 2020
Assets (1)
Liabilities (2)
Assets (1)
Liabilities (2)
Designated as hedging instruments:
Cash flow hedges
Foreign currency forward and option contracts
$7,832 $28,869 $351 $52,804 
Interest rate locks
4,996 — — — 
Net investment hedges
Cross-currency interest rate swaps
8,259 100,499 — 192,939 
Foreign currency forward contracts— 22,011 — 17,041 
Total designated as hedging
21,087 151,379 351 262,784 
Not designated as hedging instruments:
Embedded derivatives5,324 1,604 3,255 3,858 
Economic hedges of embedded derivatives
— 2,223 4,372 12 
Foreign currency forward contracts
50,919 9,644 3,721 133,805 
Total not designated as hedging
56,243 13,471 11,348 137,675 
Total Derivatives$77,330 $164,850 $11,699 $400,459 
(1)As presented in our condensed consolidated balance sheets within other current assets and other assets.
(2)As presented in our condensed consolidated balance sheets within other current liabilities and other liabilities.
Schedule of offsetting derivative assets and liabilities The following table presents information related to these offsetting arrangements as of March 31, 2021 and December 31, 2020 (in thousands):
Gross Amounts Offset in
Consolidated Balance Sheet
Gross AmountsGross Amounts Offset in the Balance SheetNet AmountsGross Amounts not Offset in the Balance SheetNet
March 31, 2021
Derivative assets
$105,185 $— $105,185 $(86,858)$18,327 
Derivative liabilities181,461 — 181,461 (86,858)94,603 
December 31, 2020
Derivative assets
$38,447 $— $38,447 $(35,100)$3,347 
Derivative liabilities415,628 — 415,628 (35,100)380,528 
Schedule of offsetting derivative assets and liabilities The following table presents information related to these offsetting arrangements as of March 31, 2021 and December 31, 2020 (in thousands):
Gross Amounts Offset in
Consolidated Balance Sheet
Gross AmountsGross Amounts Offset in the Balance SheetNet AmountsGross Amounts not Offset in the Balance SheetNet
March 31, 2021
Derivative assets
$105,185 $— $105,185 $(86,858)$18,327 
Derivative liabilities181,461 — 181,461 (86,858)94,603 
December 31, 2020
Derivative assets
$38,447 $— $38,447 $(35,100)$3,347 
Derivative liabilities415,628 — 415,628 (35,100)380,528