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Derivatives | 6 Months Ended
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Jun. 30, 2017
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 ($ in thousands):
| Derivative Assets as of |  | Derivative Liabilities as of
| June 30, 2017 |  | December 31, 2016 |  | June 30, 2017 |  | December 31, 2016
| 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 |  | $ | 71 |  |  | Other Liabilities |  | $ | 8 |
Interest rate swaps | Other assets |  | 45 |  |  | N/A |  | — |  |  | N/A |  | — |  |  | Other Liabilities |  | 39 |
Total |  |  | $ | 45 |  |  |  |  | $ | — |  |  |  |  | $ | 71 |  |  |  |  | $ | 47 |
Derivatives not Designated in Hedging Relationships |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | N/A |  | $ | — |  |  | Other Assets |  | $ | 702 |  |  | Other Liabilities |  | $ | 680 |  |  | N/A |  | $ | — |
Interest rate cap | Other Assets |  | 30 |  |  | Other Assets |  | 25 |  |  | N/A |  | — |  |  | N/A |  | — |
Total |  |  | $ | 30 |  |  |  |  | $ | 727 |  |  |  |  | $ | 680 |  |  |  |  | $ | — |
The tables below present the effect of the Company's derivative financial instruments in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ 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, 2017 |  |  |  |  |  |
Interest rate swaps |  | Interest Expense |  | (44 | ) |  | 384 |  |  | N/A
Interest rate cap |  | Earnings from equity method investments |  | (9 | ) |  | (9 | ) |  | N/A
Interest rate swap |  | Earnings from equity method investments |  | (93 | ) |  | (62 | ) |  | N/A
Foreign exchange contracts |  | Earnings from equity method investments |  | (70 | ) |  | — |  |  | N/A
For the Three Months Ended June 30, 2016 |  |  |  |  |  |
Interest rate swaps |  | Interest Expense |  | (192 | ) |  | (23 | ) |  | N/A
Interest rate swap |  | Earnings from equity method investments |  | (165 | ) |  | (95 | ) |  | N/A
Foreign exchange contracts |  | Earnings from equity method investments |  | 38 |  |  | — |  |  | N/A
For the Six Months Ended June 30, 2017 |  |  |  |  |  |  |  |
Interest rate swaps |  | Interest Expense |  | 424 |  |  | 355 |  |  | N/A
Interest rate cap |  | Earnings from equity method investments |  | (14 | ) |  | (14 | ) |  | N/A
Interest rate swap |  | Earnings from equity method investments |  | (15 | ) |  | (150 | ) |  | N/A
Foreign exchange contracts |  | Earnings from equity method investments |  | (369 | ) |  | — |  |  | N/A
For the Six Months Ended June 30, 2016 |  |  |  |  |  |  |  |
Interest rate cap |  | Interest Expense |  | — |  |  | (185 | ) |  | N/A
Interest rate cap |  | Earnings from equity method investments |  | (1 | ) |  | — |  |  | N/A
Interest rate swaps |  | Interest Expense |  | (694 | ) |  | 2 |  |  | N/A
Interest rate swap |  | Earnings from equity method investments |  | (624 | ) |  | (192 | ) |  | N/A
Foreign exchange contracts |  | Earnings from equity method investments |  | (49 | ) |  | — |  |  | N/A
|  |  |  | Amount of Gain (Loss) Recognized in Income
|  | Location of Gain (Loss) Recognized in Income |  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
Derivatives not Designated in Hedging Relationships |  | 2017 |  | 2016 |  | 2017 |  | 2016
Interest rate cap |  | Other Expense |  | $ | (41 | ) |  | $ | (252 | ) |  | $ | 6 |  |  | $ | (1,055 | )
Foreign exchange contracts |  | Other Expense |  | (645 | ) |  | 523 |  |  | (769 | ) |  | 341 |
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, 2017, 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 |  | ₨ | 350,000 |  |  | $ | 5,344 |  |  | July 2017
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, 2017, 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 £ in thousands):
Derivative Type |  | Notional Amount |  | Notional (USD Equivalent) |  | Maturity
Sells euro ("EUR")/Buys USD Forward |  | € | 7,000 |  |  | $ | 7,496 |  |  | July 2017
Sells pound sterling ("GBP")/Buys USD Forward |  | £ | 3,200 |  |  | $ | 3,988 |  |  | July 2017
The Company marks its foreign investments each quarter based on current exchange rates and records the gain or loss through "Other expense" in 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, 2017, respectively, and $(0.1) million during the three months ended June 30, 2016 in its consolidated statements of operations. Interest Rate Hedges—For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivatives are reported in Accumulated Other Comprehensive Income (Loss). The ineffective portion of the change in fair value of the derivatives is recognized directly in the Company's consolidated statements of operations. As of June 30, 2017, the Company had the following outstanding interest rate swap that was used to hedge its variable rate debt that was designated as a cash flow hedge ($ in thousands):
Derivative Type |  | Notional Amount |  | Variable Rate |  | Fixed Rate |  | Effective Date |  | Maturity
Interest rate swap |  | $ | 26,116 |  |  | LIBOR + 2.00% |  | 3.47% |  | October 2012 |  | November 2019
During the six months ended June 30, 2017, the Company entered into and settled a rate lock swap in connection with the 2017 Secured Financing and a simultaneous rate lock swap with SAFE. As a result of the settlements, the Company initially recorded a $0.4 million unrealized gain in “Accumulated other comprehensive income” on the Company’s consolidated balance sheets and subsequently derecognized the gain when third parties acquired a controlling interest in the Company's GL business (refer to Note 4). For derivatives not designated as cash flow hedges, the changes in the fair value of the derivatives are reported in the Company's consolidated statements of operations within "Other Expense." As of June 30, 2017, the Company had the following outstanding interest rate cap that was used to hedge its variable rate debt that was not designated as a cash flow hedge ($ 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 $0.1 million related to 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 derivative instruments on a gross basis in the consolidated financial statements. In connection with its foreign currency derivatives which were in a liability position as of June 30, 2017 and December 31, 2016, the Company has posted collateral of $4.5 million and $0.4 million, respectively, and is included in "Deferred expenses and other assets, net" on the Company's consolidated balance sheets. The Company's net exposure under these contracts was zero as of June 30, 2017.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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