XML 34 R19.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Derivatives, Net | 12 Months Ended
--- | ---
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives, Net | 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 (GBP and EUR) for an agreed upon amount of U.S. dollars at various dates through December 2024. 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 forwards and our interest rate swap as of December 31, 2019:
Type of Derivative | December 31, 2019
| Number of Contracts |  | Aggregate Notional Amount (in Thousands) |  | Notional Currency |  | Maturity |  | Weighted-Average Years to Maturity
Fx Contracts - GBP | 156 |  | 735,349 |  | GBP |  | January 2020 - December 2024 |  | 1.49
Fx Contracts - EUR | 44 |  | 168,879 |  | EUR |  | February 2020 - August 2024 |  | 3.22
Interest Rate Swap | 1 |  | 500,000 |  | USD |  | May 2026 |  | 6.37
The following table summarizes our non-designated Fx forwards as of December 31, 2018:
Type of Derivative | December 31, 2018
| Number of Contracts |  | Aggregate Notional Amount (in Thousands) |  | Notional Currency |  | Maturity |  | Weighted-Average Years to Maturity
Fx Contracts - GBP | 43 |  | 270,161 |  | GBP |  | January 2019 - November 2020 |  | 0.69
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 consolidated statements of operations related to our derivatives for the years ended December 31, 2019, 2018 and 2017 ($ in thousands):
|  |  | Amount of gain (loss) recognized in income
| Location of Gain (Loss) Recognized in Income |  | 2019 |  | 2018 |  | 2017
Forward currency contracts | Gain (loss) on derivative instruments - unrealized |  | $ | (28,576 | ) |  | $ | 29,345 |  |  | $ | (11,527 | )
Forward currency contracts | Gain (loss) on derivative instruments - realized |  | 14,151 |  |  | 9,713 |  |  | (7,657 | )
Interest rate caps (1) | Gain on derivative instruments - unrealized |  | — |  |  | — |  |  | 4 |
Sub-total |  |  | $ | (14,425 | ) |  | $ | 39,058 |  |  | $ | (19,180 | )
Forward currency contracts | Loss from unconsolidated joint venture |  | — |  |  | — |  |  | (587 | )
Total |  |  | $ | (14,425 | ) |  | $ | 39,058 |  |  | $ | (19,767 | )
———————
(1) | With a notional amount of $0.0 million, $34.9 million, and $40.2 million at December 31, 2019, 2018, and 2017, respectively.
In connection with our senior secured term loan, we entered into an interest rate swap to fix LIBOR at 2.12% or an all-in interest rate of 4.87%. We use our interest rate swap to manage exposure to variable cash flows on our borrowings under our senior secured term loan. Our interest rate swap allows us to receive a variable rate cash flow based on LIBOR and pay a fixed rate cash flow, mitigating the impact of this exposure. Gains or losses related to the interest rate swap are recorded net under interest expense in our consolidated statement of operations.
|  |  | Amount of loss recognized in income
| Location of Loss Recognized in Income |  | 2019 |  | 2018 |  | 2017
Interest rate swap (1) | Unrealized loss on interest rate swap |  | $ | (14,470 | ) |  | $ | — |  |  | $ | — |
———————
(1) | With a notional amount of $500.0 million, $0.0 million, and $0.0 million at December 31, 2019, 2018, and 2017, respectively.
The following table summarizes the gross asset and liability amounts related to our derivatives at December 31, 2019 and 2018 ($ in thousands).
| December 31, 2019 |  | December 31, 2018
| Gross Amount of Recognized Liabilities |  | Gross Amounts Offset in the Consolidated Balance Sheet |  | Net Amounts of Liabilities Presented in the Consolidated Balance Sheet |  | Gross Amount of Recognized Assets |  | Gross Amounts Offset in the Consolidated Balance Sheet |  | Net Amounts of Assets Presented in the Consolidated Balance Sheet
Interest rate swap | $ | (14,470 | ) |  | $ | — |  |  | $ | (14,470 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |
Forward currency contracts | (12,687 | ) |  | 7,811 |  |  | (4,876 | ) |  | 23,753 |  |  | (53 | ) |  | 23,700 |
Total derivative instruments | $ | (27,157 | ) |  | $ | 7,811 |  |  | $ | (19,346 | ) |  | $ | 23,753 |  |  | $ | (53 | ) |  | $ | 23,700 |

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 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration