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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Outstanding Foreign Exchange Derivatives Designated as Net Investment Hedges of Foreign Currency Risk
The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amounts in thousands):
September 30, 2023December 31, 2022
Foreign Currency Derivatives
Number of
 Instruments
Notional
 Amount
Foreign Currency Derivatives
Number of
 Instruments
Notional
 Amount
Buy USD / Sell SEK Forward2kr 1,004,551 Buy USD / Sell SEK Forward2kr1,003,626 
Buy USD / Sell GBP Forward8£722,576 Buy USD / Sell EUR Forward8€722,311 
Buy USD / Sell EUR Forward7€676,126 Buy USD / Sell GBP Forward6£690,912 
Buy USD / Sell AUD Forward9A$464,016 Buy USD / Sell AUD Forward8A$541,813 
Buy USD / Sell DKK Forward2kr.195,728 Buy USD / Sell DKK Forward3kr.195,019 
Buy USD / Sell CHF Forward3CHF7,873 Buy USD / Sell CAD Forward2C$22,187 
Buy USD / Sell CHF Forward2CHF5,263 
Summary of Non-designated Hedges
The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amounts in thousands):
September 30, 2023December 31, 2022
Non-designated Hedges
Number of
 Instruments
Notional
 Amount
Non-designated Hedges
Number of
 Instruments
Notional
 Amount
Buy GBP / Sell USD Forward1£14,300 Buy GBP / Sell USD Forward2£109,076 
Buy USD / Sell GBP Forward1£14,300 Buy USD / Sell GBP Forward2£109,076 
Buy AUD / Sell USD Forward1A$23,600 
Buy USD / Sell AUD Forward1A$23,600 
Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk
The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands):
September 30, 2023
Interest Rate DerivativesNumber of InstrumentsNotional AmountFixed RateIndexWtd. Avg. Maturity (Years)
Interest Rate Swaps1$229,858 4.60%SOFR1.1
Schedule of Derivative Instruments in Statement of Operations
The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands):
 Increase (Decrease) to Net Interest Income Recognized from Derivatives
Three Months Ended September 30,Nine Months Ended September 30,
Derivatives
in Hedging Relationships
Location of Income
 (Expense) Recognized
2023202220232022
Designated Hedges
Interest Income(1)
$5,120 $6,603 $20,599 $11,585 
Designated Hedges
Interest Expense(2)
384—459—
Non-Designated Hedges
Interest Income(1)
2(8)70(15)
Non-Designated Hedges
Interest Expense(3)
(2)11(64)75
Total $5,504 $6,606 $21,064 $11,645 
(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and prevailing US interest rates. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD-equivalent interest rates.
(2)Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest rate swap, which is designated as a cash flow hedge.
(3)Represents the spot rate movement in our non-designated foreign currency hedges, which are marked-to-market and recognized in interest expense.
Summary of Fair Value of Derivative Financial Instruments
The following table summarizes the fair value of our derivative financial instruments ($ in thousands):
 
Fair Value of Derivatives in an Asset
 Position(1) as of
Fair Value of Derivatives in a Liability Position(2) as of
September 30, 2023December 31, 2022September 30, 2023December 31, 2022
Derivatives designated as hedging instruments:
Foreign exchange contracts$111,603 $501 $24 $111,573 
Interest rate derivatives1,657 — — — 
Total derivatives designated as hedging instruments$113,260 $501 $24 $111,573 
Derivatives not designated as hedging instruments:
Foreign exchange contracts$1,298 $6,848 $304 $8,092 
Interest rate derivatives— — — — 
Total derivatives not designated as hedging instruments$1,298 $6,848 $304 $8,092 
Total Derivatives$114,558 $7,349 $328 $119,665 
(1)Included in other assets in our consolidated balance sheets.
(2)Included in other liabilities in our consolidated balance sheets.
Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Comprehensive Income And Operations
The following table presents the effect of our derivative financial instruments on our consolidated statements of comprehensive income and operations ($ in thousands):
Derivatives in Hedging Relationships
Amount of Gain (Loss) Recognized in
OCI on Derivatives
Location of
 Gain (Loss)
 Reclassified
from Accumulated OCI into Income
Amount of
Gain Reclassified from
 Accumulated OCI into Income
Three Months Ended September 30, 2023Nine Months Ended September 30, 2023Three Months Ended September 30, 2023Nine Months Ended September 30, 2023
Net Investment Hedges 
Foreign exchange contracts(1)
$71,379 $20,382 Interest Expense$— $— 
Cash Flow Hedges 
Interest rate derivatives6532,116
Interest Expense(2)
384459
Total$72,032 $22,498  $384 $459 
(1)During the three and nine months ended September 30, 2023, we paid net cash settlements of $44.7 million and $183.9 million, respectively, on our foreign currency forward contracts. Those amounts are included as a component of accumulated other comprehensive income on our consolidated balance sheets.
(2)During the three and nine months ended September 30, 2023, we recorded total interest and related expenses of $354.0 million and $1.0 billion, respectively, which were reduced by $384,000 and $459,000, respectively, related to income generated by our cash flow hedges.