XML 68 R28.htm IDEA: XBRL DOCUMENT
v3.21.2

Derivatives and Hedging Activities (Tables) | 6 Months Ended
--- | ---
Jun. 30, 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 and six months ended June 30, 2021 and 2020 was as follows (in thousands):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency debt |  | $ | (23,758) |  |  | $ | (85,215) |  |  | $ | 44,982 |  |  | $ | 13,887 |
Cross-currency interest rate swaps (included component) (1) |  | (23,124) |  |  | (10,333) |  |  | 118,104 |  |  | 3,807 |
Cross-currency interest rate swaps (excluded component) (2) |  | 15,112 |  |  | (1,510) |  |  | (25,417) |  |  | 30,194 |
Foreign currency forward contracts (included component) (1) |  | (5,264) |  |  | — |  |  | (4,556) |  |  | — |
Foreign currency forward contracts (excluded component) (3) |  | (2) |  |  | — |  |  | 26 |  |  | — |
Total |  | $ | (37,036) |  |  | $ | (97,058) |  |  | $ | 133,139 |  |  | $ | 47,888 |
Amount of gain or (loss) recognized in earnings: |  |  |  |
| Location of gain or (loss) |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Cross-currency interest rate swaps (excluded component) (2) | Interest expense |  | $ | 10,566 |  |  | $ | 5,459 |  |  | $ | 20,615 |  |  | $ | 10,548 |
Foreign currency forward contracts (excluded component) (3) | Interest expense |  | 40 |  |  | — |  |  | 204 |  |  | — |
Total |  |  | $ | 10,606 |  |  | $ | 5,459 |  |  | $ | 20,819 |  |  | $ | 10,548 |
(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 and six months ended June 30, 2021 and 2020 was as follows (in thousands):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency forward and option contracts (included component) (1) |  | $ | 1,833 |  |  | $ | (22,347) |  |  | $ | 33,207 |  |  | $ | 5,678 |
Foreign currency option contracts (excluded component) (2) |  | (45) |  |  | 358 |  |  | 151 |  |  | 1,676 |
Interest rate locks |  | (7,040) |  |  | (650) |  |  | (1,239) |  |  | (26,882) |
Total |  | $ | (5,252) |  |  | $ | (22,639) |  |  | $ | 32,119 |  |  | $ | (19,528) |
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| Location of gain or (loss) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency forward contracts | Revenues |  | $ | (16,565) |  |  | $ | 20,558 |  |  | $ | (29,534) |  |  | $ | 41,777 |
Foreign currency forward contracts | Costs and operating expenses |  | 8,583 |  |  | (10,498) |  |  | 15,787 |  |  | (21,498) |
Interest rate locks | Interest Expense |  | (1,049) |  |  | 90 |  |  | (1,854) |  |  | 258 |
Total |  |  | $ | (9,031) |  |  | $ | 10,150 |  |  | $ | (15,601) |  |  | $ | 20,537 |
Amount of gain or (loss) excluded from effectiveness testing included in income:
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| Location of gain or (loss) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency option contracts (excluded component) (2) | Revenues |  | $ | (63) |  |  | $ | (503) |  |  | $ | (244) |  |  | $ | (1,024) |
Total |  |  | $ | (63) |  |  | $ | (503) |  |  | $ | (244) |  |  | $ | (1,024) |
(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 June 30, |  | Six Months Ended June 30,
| Location of gain or (loss) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Embedded derivatives | Revenues |  | $ | 650 |  |  | $ | (2,741) |  |  | $ | 5,145 |  |  | $ | 4,710 |
Economic hedge of embedded derivatives | Revenues |  | (279) |  |  | 2,301 |  |  | (4,492) |  |  | (5,601) |
Foreign currency forward contracts | Other income (expense) |  | 7,975 |  |  | (113,016) |  |  | 64,775 |  |  | 20,808 |
Total |  |  | $ | 8,346 |  |  | $ | (113,456) |  |  | $ | 65,428 |  |  | $ | 19,917 |
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 June 30, 2021 and December 31, 2020 (in thousands):
| June 30, 2021 |  | December 31, 2020
| Assets (1) |  | Liabilities (2) |  | Assets (1) |  | Liabilities (2)
Designated as hedging instruments: |  |  |  |  |  |  |
Cash flow hedges |  |  |  |  |  |  |
Foreign currency forward and option contracts | $ | 8,422 |  |  | $ | 27,742 |  |  | $ | 351 |  |  | $ | 52,804 |
Net investment hedges |  |  |  |  |  |  |
Cross-currency interest rate swaps | 9,180 |  |  | 109,432 |  |  | — |  |  | 192,939 |
Foreign currency forward contracts | — |  |  | 27,237 |  |  | — |  |  | 17,041 |
Total designated as hedging | 17,602 |  |  | 164,411 |  |  | 351 |  |  | 262,784 |
Not designated as hedging instruments: |  |  |  |  |  |  |
Embedded derivatives | 5,676 |  |  | 1,320 |  |  | 3,255 |  |  | 3,858 |
Economic hedges of embedded derivatives | — |  |  | 2,411 |  |  | 4,372 |  |  | 12 |
Foreign currency forward contracts | 53,867 |  |  | 13,979 |  |  | 3,721 |  |  | 133,805 |
Total not designated as hedging | 59,543 |  |  | 17,710 |  |  | 11,348 |  |  | 137,675 |
Total Derivatives | $ | 77,145 |  |  | $ | 182,121 |  |  | $ | 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 June 30, 2021 and December 31, 2020 (in thousands):
| Gross Amounts Offset in Consolidated Balance Sheet |  |  |  |
| Gross Amounts |  | Gross Amounts Offset in the Balance Sheet |  | Net Amounts |  | Gross Amounts not Offset in the Balance Sheet |  | Net
June 30, 2021 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 106,488 |  |  | $ | — |  |  | $ | 106,488 |  |  | $ | (86,576) |  |  | $ | 19,912 |
Derivative liabilities | 197,620 |  |  | — |  |  | 197,620 |  |  | (86,576) |  |  | 111,044 |
December 31, 2020 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 38,447 |  |  | $ | — |  |  | $ | 38,447 |  |  | $ | (35,100) |  |  | $ | 3,347 |
Derivative liabilities | 415,628 |  |  | — |  |  | 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 June 30, 2021 and December 31, 2020 (in thousands):
| Gross Amounts Offset in Consolidated Balance Sheet |  |  |  |
| Gross Amounts |  | Gross Amounts Offset in the Balance Sheet |  | Net Amounts |  | Gross Amounts not Offset in the Balance Sheet |  | Net
June 30, 2021 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 106,488 |  |  | $ | — |  |  | $ | 106,488 |  |  | $ | (86,576) |  |  | $ | 19,912 |
Derivative liabilities | 197,620 |  |  | — |  |  | 197,620 |  |  | (86,576) |  |  | 111,044 |
December 31, 2020 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 38,447 |  |  | $ | — |  |  | $ | 38,447 |  |  | $ | (35,100) |  |  | $ | 3,347 |
Derivative liabilities | 415,628 |  |  | — |  |  | 415,628 |  |  | (35,100) |  |  | 380,528 |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for cash flow hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfCashFlowHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the effective portion of gains and losses on derivative instruments (and nonderivative instruments) designated and qualifying in net investment hedges recorded in accumulated other comprehensive income (loss) during the term of the hedging relationship and reclassified into earnings during the current period. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CCC -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL109998896-113959 + Details
Name: | us-gaap_ScheduleOfNetInvestmentHedgesInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CC -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL109998890-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration