Derivatives

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Note 13—Derivatives

The Company’s use of derivative financial instruments has historically been 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. The Company may have derivatives that are not designated as hedges because they do not meet the strict hedge accounting requirements. Although not designated as hedges, such derivatives are entered into to manage the Company’s exposure to interest rate movements and other identified risks.

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 September 30, 2021 and December 31, 2020 ($ in thousands):⁽¹⁾

	Derivative Liabilities
	Balance Sheet	Fair
As of September 30, 2021	Location	Value
Derivatives Designated in Hedging Relationships
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	$	11,723
Total		$	11,723
As of December 31, 2020
Derivatives Designated in Hedging Relationships
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	$	18,926
Total		$	18,926

(1) Over the next 12 months, the Company expects that $9.1 million related to cash flow hedges will be reclassified from “Accumulated other comprehensive income (loss)” as an increase to interest expense.

The table below presents the effect of the Company’s derivative financial instruments, including the Company’s share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands):

		Amount of Gain		Amount of Gain
	Location of Gain	(Loss) Recognized in		(Loss) Reclassified
	(Loss)	Accumulated Other		from Accumulated
Derivatives Designated in	When Recognized in	Comprehensive		Other Comprehensive
Hedging Relationships	Income	Income		Income into Earnings
For the Three Months Ended September 30, 2021
Interest rate swaps	Interest expense	$	278	$	(2,050)
Interest rate swaps	Earnings from equity method investments		(5)		(633)
For the Three Months Ended September 30, 2020
Interest rate swaps	Interest expense	$	(401)	$	(2,038)
Interest rate swaps	Earnings from equity method investments		598		(333)
For the Nine Months Ended September 30, 2021
Interest rate swaps	Interest expense	$	2,834	$	(6,183)
Interest rate swaps	Earnings from equity method investments		8,649		(1,324)
For the Nine Months Ended September 30, 2020
Interest rate swaps	Interest Expense	$	(15,371)	$	(4,926)
Interest rate swaps	Earnings from equity method investments		(15,559)		(866)