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Derivative Instruments and Hedging Activities | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges). INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES We utilize interest rate swap agreements designated as cash flow hedges to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. Certain of our interest rate swap agreements have notional amounts that will increase with the underlying hedged transaction. Under our interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon the one-month Secured Overnight Financing Rate ("SOFR"), in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. Our interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities. As of September 30, 2024 and December 31, 2023, we have approximately $1,354,000 and $520,000, respectively, in notional value outstanding on our interest rate swap agreements. As of September 30, 2024, our interest rate swap agreements have maturity dates ranging from October 2025 through May 2027. CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT We utilize cross-currency swaps to hedge the variability of exchange rate impacts between the United States dollar and the Euro. As of both September 30, 2024 and December 31, 2023, we have approximately $509,200 in notional value outstanding on cross-currency interest rate swaps. As of September 30, 2024, our cross-currency interest rate swaps have maturity dates ranging from August 2025 through February 2026. We have designated these cross-currency swap agreements as hedges of net investments in certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis. The fair values of derivative instruments recognized in our Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023, by derivative instrument, are as follows:
|  | SEPTEMBER 30, 2024 |  | DECEMBER 31, 2023
DERIVATIVE INSTRUMENTS(1) |  | Assets |  | Liabilities |  | Assets |  | Liabilities
Cash Flow Hedges(2) |  |  |  |  |  |  |  |
Interest rate swap agreements |  | $ | — |  |  | $ | (25,053) |  |  | $ | 1,601 |  |  | $ | (3,273) |
Net Investment Hedges(3) |  |  |  |  |  |  |  |
Cross-currency swap agreements |  | — |  |  | (4,771) |  |  | 4,758 |  |  | (2,496) |
(1)Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of September 30, 2024, $1,848 is included within Accrued expenses and other current liabilities and $27,976 is included within Other long-term liabilities. As of December 31, 2023, $6,359 is included within Other assets, $2,496 is included within Accrued expenses and other current liabilities and $3,273 is included within Other long-term liabilities. (2)As of September 30, 2024, cumulative net losses recorded within Accumulated other comprehensive items, net associated with our interest rate swap agreements are $23,437. (3)As of September 30, 2024, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our cross-currency swap agreements are $37,955, which include $42,726 related to the excluded component of our cross-currency swap agreements. Unrealized (losses) gains recognized in Accumulated other comprehensive items, net during the three and nine months ended September 30, 2024 and 2023, by derivative instrument, are as follows:
|  | THREE MONTHS ENDED SEPTEMBER 30, |  | NINE MONTHS ENDED SEPTEMBER 30,
DERIVATIVE INSTRUMENTS |  | 2024 |  | 2023 |  | 2024 |  | 2023
Cash Flow Hedges |  |  |  |  |  |  |  |
Interest rate swap agreements |  | $ | (34,281) |  |  | $ | 6,184 |  |  | $ | (23,381) |  |  | $ | 10,638 |
Net Investment Hedges |  |  |  |  |  |  |  |
Cross-currency swap agreements |  | (18,480) |  |  | 5,822 |  |  | (7,033) |  |  | (15,685) |
Cross-currency swap agreements (excluded component) |  | 4,176 |  |  | 5,270 |  | 12,529 |  |  | 16,921 |
(Losses) gains recognized in Net income (loss) during the three and nine months ended September 30, 2024 and 2023, by derivative instrument, are as follows:
|  |  | THREE MONTHS ENDED SEPTEMBER 30, |  | NINE MONTHS ENDED SEPTEMBER 30,
DERIVATIVE INSTRUMENTS | Location of (loss) gain |  | 2024 |  | 2023 |  | 2024 |  | 2023
Cash Flow Hedges |  |  |  |  |  |  |  |  |
Interest rate swap agreements | Interest expense |  | $ | — |  |  | $ | 2,527 |  |  | $ | 2,528 |  |  | $ | 5,054 |
Net Investment Hedges |  |  |  |  |  |  |  |  |
Cross-currency swap agreements (excluded component) | Interest expense |  | (4,176) |  |  | (5,270) |  |  | (12,529) |  |  | (16,921) |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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