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Derivatives | 6 Months Ended
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Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives The Company's use of derivative financial instruments is primarily limited to the utilization of interest rate swaps, interest rate caps and foreign exchange contracts. The principal objective of such financial instruments is to minimize the risks and/or costs associated with the Company's operating and financial structure and to manage its exposure to interest rates and foreign exchange rates. Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements, foreign exchange rate movements, and other identified risks, but may not meet the strict hedge accounting requirements. The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014 ($ in thousands):
| Derivative Assets as of |  | Derivative Liabilities as of
| June 30, 2015 |  | December 31, 2014 |  | June 30, 2015 |  | December 31, 2014
| Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Derivatives Designated in Hedging Relationships |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | N/A |  | $ | — |  |  | N/A |  | $ | — |  |  | Other Liabilities |  | $ | 21 |  |  | Other Liabilities |  | $ | 478 |
Interest rate swaps | N/A |  | — |  |  | Other Assets |  | 52 |  |  | Other Liabilities |  | 54 |  |  | N/A |  | — |
Total |  |  | $ | — |  |  |  |  | $ | 52 |  |  |  |  | $ | 75 |  |  |  |  | $ | 478 |
Derivatives not Designated in Hedging Relationships |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | N/A |  | $ | — |  |  | Other Assets |  | $ | 1,534 |  |  | Other Liabilities |  | $ | 609 |  |  | N/A |  | $ | — |
Interest rate cap | Other Assets |  | 2,204 |  |  | Other Assets |  | 4,775 |  |  | N/A |  | — |  |  | N/A |  | — |
Total |  |  | $ | 2,204 |  |  |  |  | $ | 6,309 |  |  |  |  | $ | 609 |  |  |  |  | $ | — |
The tables below present the effect of the Company's derivative financial instruments on the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2015 and 2014 ($ in thousands):
Derivatives Designated in Hedging Relationships |  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Effective Portion) |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) |  | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Ineffective Portion)
For the Three Months Ended June 30, 2015 |  |  |  |  |  |
Interest rate cap |  | Interest Expense |  | $ | — |  |  | $ | (125 | ) |  | N/A |
Interest rate cap |  | Earnings from equity method investments |  | (3 | ) |  | — |  |  | N/A |
Interest rate swaps |  | Interest Expense |  | 92 |  |  | 42 |  |  | N/A |
Interest rate swap |  | Earnings from equity method investments |  | 41 |  |  | (117 | ) |  | N/A |
Foreign exchange contracts |  | Earnings from equity method investments |  | 14 |  |  | — |  |  | N/A |
For the Three Months Ended June 30, 2014 |  |  |  |  |  |
Interest rate cap |  | Other Expense |  | (2,022 | ) |  | — |  |  | (3,634 | )
Interest rate swap |  | Interest Expense |  | (693 | ) |  | (39 | ) |  | N/A |
Foreign exchange contracts |  | Other Expense |  | (127 | ) |  | — |  |  | N/A |
For the Six Months Ended June 30, 2015 |  |  |  |  |  |  |  |  |
Interest rate cap |  | Interest Expense |  | — |  |  | 202 |  |  | N/A |
Interest rate cap |  | Earnings from equity method investments |  | (10 | ) |  | — |  |  | N/A |
Interest rate swaps |  | Interest Expense |  | 284 |  |  | 84 |  |  | N/A |
Interest rate swaps |  | Earnings from equity method investments |  | (323 | ) |  | (232 | ) |  | N/A |
Foreign exchange contracts |  | Earnings from equity method investments |  | (184 | ) |  | — |  |  | N/A |
For the Six Months Ended June 30, 2014 |  |  |  |  |  |  |  |  |
Interest rate cap |  | Other Expense |  | (2,984 | ) |  | — |  |  | (3,634 | )
Interest rate swap |  | Interest Expense |  | (1,041 | ) |  | 96 |  |  | N/A |
Foreign exchange contracts |  | Other Expense |  | (579 | ) |  | — |  |  | N/A |
|  |  |  | Amount of Gain or (Loss) Recognized in Income
|  | Location of Gain or (Loss) Recognized in Income |  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
Derivatives not Designated in Hedging Relationships |  | 2015 |  | 2014 |  | 2015 |  | 2014
Interest rate cap |  | Other Expense |  | $ | (534 | ) |  | $ | (504 | ) |  | $ | (2,571 | ) |  | $ | (504 | )
Foreign exchange contracts |  | Other Expense |  | (702 | ) |  | (751 | ) |  | 1,587 |  |  | 747 |
Foreign Exchange Contracts—The Company is exposed to fluctuations in foreign exchange rates on investments it holds in foreign entities. The Company uses foreign exchange contracts to hedge its exposure to changes in foreign exchange rates on its foreign investments. Foreign exchange contracts involve fixing the U.S. dollar ("USD") to the respective foreign currency exchange rate for delivery of a specified amount of foreign currency on a specified date. The foreign exchange contracts are typically cash settled in USD for their fair value at or close to their settlement date. For derivatives designated as net investment hedges, the effective portion of changes in the fair value of the derivatives are reported in Accumulated Other Comprehensive Income as part of the cumulative translation adjustment. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. Amounts are reclassified out of Accumulated Other Comprehensive Income into earnings when the hedged foreign entity is either sold or substantially liquidated. As of June 30, 2015, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations that were designated ($ and Rs in thousands):
Derivative Type |  | Notional Amount |  | Notional (USD Equivalent) |  | Maturity
Sells Indian rupee ("INR")/Buys USD Forward |  | ₨ | 456,000 |  |  | $ | 6,553 |  |  | December 2016
For derivatives not designated as net investment hedges, the changes in the fair value of the derivatives are reported in the Company's Consolidated Statements of Operations within "Other Expense." As of June 30, 2015, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations that were not designated ($, €, £ and C$ in thousands):
Derivative Type |  | Notional Amount |  | Notional (USD Equivalent) |  | Maturity
Sells euro ("EUR")/Buys USD Forward |  | € | 5,500 |  |  | $ | 5,916 |  |  | July 2015
Sells pound sterling ("GBP")/Buys USD Forward |  | £ | 3,000 |  |  | $ | 4,433 |  |  | July 2015
Sells Canadian dollar ("CAD")/Buys USD Forward |  | C$ | 10,500 |  |  | $ | 8,292 |  |  | July 2015
The Company marks its foreign investments each quarter based on current exchange rates and records the gain or loss through "Other expense" on its Consolidated Statements of Operations for loan investments or "Accumulated other comprehensive income (loss)," on its Consolidated Balance Sheets for net investments in foreign subsidiaries. The Company recorded net gains (losses) related to foreign investments of $(0.1) million and $(0.1) million during the three and six months ended June 30, 2015, respectively, and $0.0 million and $0.4 million during the three and six months ended June 30, 2014, respectively, in its Consolidated Statements of Operations. Interest Rate Hedges—For derivatives designated as interest rate hedges, the effective portion of changes in the fair value of the derivatives are reported in Accumulated Other Comprehensive Income (Loss). The ineffective portion of the change in fair value of the derivatives is recognized directly within the Company's Consolidated Statements of Operations. As of June 30, 2015, the Company had the following outstanding interest rate swap that was used to hedge its variable rate debt that was designated ($ in thousands):
Derivative Type |  | Notional Amount |  | Variable Rate |  | Fixed Rate |  | Effective Date |  | Maturity
Interest rate swap |  | $ | 27,196 |  |  | LIBOR + 2.00% |  | 3.47% |  | October 2012 |  | November 2019
For derivatives not designated as interest rate hedges, the changes in the fair value of the derivatives are reported in the Company's Consolidated Statements of Operations within "Other Expense." As of June 30, 2015, the Company had the following outstanding interest rate cap that was used to hedge its variable rate debt that was not designated ($ in thousands):
Derivative Type |  | Notional Amount |  | Variable Rate |  | Fixed Rate |  | Effective Date |  | Maturity
Interest rate cap |  | $ | 500,000 |  |  | LIBOR |  | 1.00% |  | July 2014 |  | July 2017
Over the next 12 months, the Company expects that $0.2 million related to terminated cash flow hedges will be reclassified from "Accumulated other comprehensive income (loss)" into interest expense and $0.7 million relating to other cash flow hedges will be reclassified from "Accumulated other comprehensive income (loss)" into earnings. Credit Risk-Related Contingent Features—The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company reports our derivative instruments on a gross basis on our consolidated financial statements. In connection with its foreign currency derivatives which were in a liability position as of June 30, 2015, the Company has posted collateral of $3.0 million and $3.0 million, respectively, as of June 30, 2015 and December 31, 2014, which is included in "Restricted cash" on the Company's Consolidated Balance Sheets. The Company's net exposure under these contracts was $0 as of June 30, 2015.

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