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Derivatives and Hedging Instruments | 6 Months Ended
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Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Instruments | Derivatives and Hedging InstrumentsThe Company may periodically enter into derivative financial instruments to manage risks related to interest rates and foreign currency. Certain of the Company’s derivative financial instruments qualify for hedge accounting treatment. The following table summarizes the fair value of derivative instruments as recorded in the Company’s consolidated statements of financial condition (in thousands):
| June 30, 2022 |  | December 31, 2021
Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Interest rate cap contracts | Other assets |  | $ | 18,658 |  |  | Other assets |  | $ | 3,541 |
Cross-currency swap agreements | Other liabilities |  | (42,018) |  |  | Other liabilities |  | (16,902) |
Derivatives Designated as Hedging Instruments The Company may periodically enter into interest rate swap agreements to reduce its exposure to fluctuations in interest rates on variable interest rate debt and their impact on earnings and cash flows. Under the swap agreements, the Company receives floating interest rate payments and makes interest payments based on fixed interest rates. The Company historically designated its interest rate swap instruments as cash flow hedges. As of June 30, 2022, there were no interest rate swap agreements. The Company also uses interest rate cap contracts to manage its risk related to the interest rate fluctuations in its variable interest rate bearing debt. As of June 30, 2022, the Company held two interest rate cap contracts with a notional amount of approximately $845.3 million. The interest rate cap hedging the fluctuations in three-month EURIBOR floating rate debt (“2019 Cap”) has a notional amount of €400.0 million (approximately $419.2 million based on an exchange rate of $1.00 to €0.95, the exchange rate as of June 30, 2022) and matures in June 2024. The interest rate cap hedging the fluctuations in sterling overnight index average (“SONIA”) bearing debt (“2021 Cap”) has a notional amount of £350.0 million (approximately $426.1 million based on an exchange rate of $1.00 to £0.82, the exchange rate as of June 30, 2022) and matures in September 2024. The Company expects the hedge relationships to be highly effective and designates the 2019 Cap and 2021 Cap as cash flow hedge instruments. The Company expects to reclassify approximately $4.0 million of net derivative gain from OCI into earnings relating to interest rate caps within the next 12 months. The Company uses cross-currency swap agreements to manage foreign currency exchange risk by converting fixed-rate Euro-denominated borrowings including periodic interest payments and the payment of principal at maturity to fixed-rate USD debt. The cross-currency swap agreements are accounted for as cash flow hedges. As of June 30, 2022, there were four cross-currency swap agreements outstanding with a total notional amount of €350.0 million (approximately $366.8 million based on an exchange rate of $1.00 to €0.95, the exchange rate as of June 30, 2022). The Company expects to reclassify approximately $6.3 million of net derivative loss from OCI into earnings relating to cross-currency swaps within the next 12 months. The following tables summarize the effects of derivatives in cash flow hedging relationships designated as hedging instruments in the Company’s consolidated financial statements (in thousands):
Derivatives Designated as Hedging Instruments |  | Gain (Loss) Recognized in OCI |  | Location of Gain (Loss) Reclassified from OCI into Income (Loss) |  | Gain (Loss) Reclassified from OCI into Income (Loss)
| Three Months Ended June 30, |  |  | Three Months Ended June 30,
| 2022 |  | 2021 |  |  | 2022 |  | 2021
Interest rate swap agreements |  | $ | — |  |  | $ | (37) |  |  | Interest expense |  | $ | — |  |  | $ | (2,268) |
Interest rate cap contracts |  | 6,587 |  |  | (127) |  |  | Interest expense |  | (183) |  |  | (109) |
Cross-currency swap agreements |  | (22,435) |  |  | 3,506 |  |  | Interest expense |  | (2,136) |  |  | (865) |
Cross-currency swap agreements |  |  |  |  |  | Other (expense) income |  | (20,376) |  |  | 4,529 |
Derivatives Designated as Hedging Instruments |  | Gain (Loss) Recognized in OCI |  | Location of Gain (Loss) Reclassified from OCI into Income (Loss) |  | Gain (Loss) Reclassified from OCI into Income (Loss)
| Six Months Ended June 30, |  |  | Six Months Ended June 30,
| 2022 |  | 2021 |  |  | 2022 |  | 2021
Interest rate swap agreements |  | $ | — |  |  | $ | (48) |  |  | Interest expense |  | $ | — |  |  | $ | (4,539) |
Interest rate cap contracts |  | 16,350 |  |  | 68 |  |  | Interest expense |  | (353) |  |  | (216) |
Cross-currency swap agreements |  | (28,839) |  |  | (14,823) |  |  | Interest expense |  | (3,723) |  |  | (2,275) |
Cross-currency swap agreements |  |  |  |  |  | Other expense |  | (30,852) |  |  | (11,589) |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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