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Derivatives and Hedging Activities (Tables) | 9 Months Ended
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Sep. 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 nine months ended September 30, 2021 and 2020 was as follows (in thousands):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency debt |  | $ | 36,308 |  |  | $ | (130,774) |  |  | $ | 81,290 |  |  | $ | (116,887) |
Cross-currency interest rate swaps (included component) (1) |  | 89,494 |  |  | (78,226) |  |  | 207,598 |  |  | (74,419) |
Cross-currency interest rate swaps (excluded component) (2) |  | (2,527) |  |  | (16,588) |  |  | (27,944) |  |  | 13,606 |
Foreign currency forward contracts (included component) (1) |  | 7,858 |  |  | (1,485) |  |  | 3,302 |  |  | (1,485) |
Foreign currency forward contracts (excluded component) (3) |  | (53) |  |  | (28) |  |  | (27) |  |  | (28) |
Total |  | $ | 131,080 |  |  | $ | (227,101) |  |  | $ | 264,219 |  |  | $ | (179,213) |
Amount of gain or (loss) recognized in earnings: |  |  |  |
| Location of gain or (loss) |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Cross-currency interest rate swaps (excluded component) (2) | Interest expense |  | $ | 11,863 |  |  | $ | 6,613 |  |  | $ | 32,478 |  |  | $ | 17,161 |
Foreign currency forward contracts (excluded component) (3) | Interest expense |  | 38 |  |  | 1 |  |  | 242 |  |  | 1 |
Total |  |  | $ | 11,901 |  |  | $ | 6,614 |  |  | $ | 32,720 |  |  | $ | 17,162 |
(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 nine months ended September 30, 2021 and 2020 was as follows (in thousands):
Amount of gain or (loss) recognized in accumulated other comprehensive income:
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency forward and option contracts (included component) (1) |  | $ | 27,860 |  |  | $ | (40,770) |  |  | $ | 61,067 |  |  | $ | (35,092) |
Foreign currency option contracts (excluded component) (2) |  | — |  |  | 639 |  |  | 151 |  |  | 2,315 |
Interest rate locks |  | 7,374 |  |  | (2,420) |  |  | 6,135 |  |  | (29,302) |
Total |  | $ | 35,234 |  |  | $ | (42,551) |  |  | $ | 67,353 |  |  | $ | (62,079) |
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| Location of gain or (loss) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency forward contracts | Revenues |  | $ | (11,863) |  |  | $ | 2,904 |  |  | $ | (41,397) |  |  | $ | 44,681 |
Foreign currency forward contracts | Costs and operating expenses |  | 5,872 |  |  | (1,951) |  |  | 21,659 |  |  | (23,449) |
Interest rate locks | Interest Expense |  | (1,101) |  |  | (731) |  |  | (2,955) |  |  | (473) |
Total |  |  | $ | (7,092) |  |  | $ | 222 |  |  | $ | (22,693) |  |  | $ | 20,759 |
Amount of gain or (loss) excluded from effectiveness testing included in income:
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| Location of gain or (loss) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Foreign currency option contracts (excluded component) (2) | Revenues |  | $ | — |  |  | $ | (430) |  |  | $ | (244) |  |  | $ | (1,454) |
Total |  |  | $ | — |  |  | $ | (430) |  |  | $ | (244) |  |  | $ | (1,454) |
(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 September 30, |  | Nine Months Ended September 30,
| Location of gain or (loss) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Embedded derivatives | Revenues |  | $ | 1,023 |  |  | $ | (3,308) |  |  | $ | 6,168 |  |  | $ | 1,402 |
Economic hedge of embedded derivatives | Revenues |  | (1,532) |  |  | 3,259 |  |  | (6,024) |  |  | (2,342) |
Foreign currency forward contracts | Other income (expense) |  | 62,840 |  |  | (50,022) |  |  | 127,615 |  |  | (29,214) |
Total |  |  | $ | 62,331 |  |  | $ | (50,071) |  |  | $ | 127,759 |  |  | $ | (30,154) |
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 September 30, 2021 and December 31, 2020 (in thousands):
| September 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 | $ | 19,026 |  |  | $ | 10,471 |  |  | $ | 351 |  |  | $ | 52,804 |
Interest rate locks | 6,273 |  |  | — |  |  | — |  |  | — |
Net investment hedges |  |  |  |  |  |  |
Cross-currency interest rate swaps | 31,855 |  |  | 45,140 |  |  | — |  |  | 192,939 |
Foreign currency forward contracts | 742 |  |  | — |  |  | — |  |  | 17,041 |
Total designated as hedging | 57,896 |  |  | 55,611 |  |  | 351 |  |  | 262,784 |
Not designated as hedging instruments: |  |  |  |  |  |  |
Embedded derivatives | 6,339 |  |  | 991 |  |  | 3,255 |  |  | 3,858 |
Economic hedges of embedded derivatives | — |  |  | 1,999 |  |  | 4,372 |  |  | 12 |
Foreign currency forward contracts | 95,360 |  |  | 17,179 |  |  | 3,721 |  |  | 133,805 |
Total not designated as hedging | 101,699 |  |  | 20,169 |  |  | 11,348 |  |  | 137,675 |
Total Derivatives | $ | 159,595 |  |  | $ | 75,780 |  |  | $ | 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 September 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
September 30, 2021 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 190,938 |  |  | $ | — |  |  | $ | 190,938 |  |  | $ | (88,534) |  |  | $ | 102,404 |
Derivative liabilities | 93,401 |  |  | — |  |  | 93,401 |  |  | (88,534) |  |  | 4,867 |
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 September 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
September 30, 2021 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 190,938 |  |  | $ | — |  |  | $ | 190,938 |  |  | $ | (88,534) |  |  | $ | 102,404 |
Derivative liabilities | 93,401 |  |  | — |  |  | 93,401 |  |  | (88,534) |  |  | 4,867 |
December 31, 2020 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 38,447 |  |  | $ | — |  |  | $ | 38,447 |  |  | $ | (35,100) |  |  | $ | 3,347 |
Derivative liabilities | 415,628 |  |  | — |  |  | 415,628 |  |  | (35,100) |  |  | 380,528 |

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