Derivatives, Net

We use forward currency contracts to economically hedge interest and principal payments due under our loans denominated in currencies other than U.S. dollars.

We have entered into a series of forward contracts to sell an amount of foreign currency (British pound and Euro) for an agreed upon amount of U.S. dollars at various dates through November 2020. These forward contracts were executed to economically fix the U.S. dollar amounts of foreign denominated cash flows expected to be received by us related to foreign denominated loan investments.

The following table summarizes our non-designated foreign exchange (“Fx”) forwards as of September 30, 2018:



Type of Derivative	September 30, 2018
	Number of Contracts	Aggregate Notional Amount (in thousands)	Notional Currency	Maturity
Fx Contracts - GBP	35	274,309	GBP	October 2018 - November 2020
Fx Contracts - EUR	1	42,247	EUR	October 2018

The following table summarizes our non-designated Fx forwards as of December 31, 2017:



Type of Derivative	December 31, 2017
	Number of Contracts	Aggregate Notional Amount (in thousands)	Notional Currency	Maturity
Fx Contracts - GBP	24	177,077	GBP	January 2018- November 2020

We have not designated any of our derivative instruments as hedges as defined in ASC 815 "Derivatives and Hedging" and, therefore, changes in the fair value of our derivative instruments are recorded directly in earnings. The following table summarizes the amounts recognized on the condensed consolidated statements of operations related to our derivatives for the three and nine months ended September 30, 2018 and 2017 ($ in thousands):



		Amount of gain (loss) recognized in income						Amount of gain (loss) recognized in income
		Three months ended September 30,						Nine months ended September 30,
	Location of Gain (Loss) Recognized in Income	2018			2017			2018			2017
Forward currency contracts	Gain (loss) on derivative instruments - unrealized	$	5,046		$	(7,308	)	$	20,987		$	(17,629	)
Forward currency contracts	Gain (loss) on derivative instruments - realized	1,246			(179		)	7,811			(290		)
Interest rate caps⁽¹⁾	Gain (loss) on derivative instruments - unrealized	(1		)	6			(1		)	3
Total		$	6,291		$	(7,481	)	$	28,797		$	(17,916	)

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(1)	With a notional amount of $36.2 million and $41.5 million at September 30, 2018, and 2017, respectively.

The following table summarizes the gross asset and liability amounts related to our derivatives at September 30, 2018 and December 31, 2017 ($ in thousands).



	September 30, 2018							December 31, 2017
	Gross Amount of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheet			Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet		Gross Amount of Recognized Liabilities			Gross Amounts Offset in the Condensed Consolidated Balance Sheet		Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheet
Interest rate caps	$	1	$	—		$	1	$	—		$	1	$	1
Forward currency contracts	15,708		(368		)	15,340		(5,645		)	—		(5,645		)
Total derivative instruments	$	15,709	$	(368	)	$	15,341	$	(5,645	)	$	1	$	(5,644	)