XML 65 R27.htm IDEA: XBRL DOCUMENT

Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands):



Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended September 30,				Nine Months Ended September 30,
		2019		2018		2019		2018
Foreign currency debt		$	151,825	$	27,213	$	181,431	$	179,056
Cross-currency interest rate swaps (included component) ⁽¹⁾		30,505		—		36,331		—
Cross-currency interest rate swaps (excluded component) ⁽²⁾		6,566		—		10,117		—
Total		$	188,896	$	27,213	$	227,879	$	179,056

Amount of gain or (loss) recognized in earnings:
	Location of gain or (loss)	Three Months Ended September 30,				Nine Months Ended September 30,
	Location of gain or (loss)	2019		2018		2019		2018
Cross-currency interest rate swaps (excluded component) ⁽²⁾	Interest expense	$	5,072	$	—	$	14,163	$	—
Total		$	5,072	$	—	$	14,163	$	—


⁽¹⁾	Included component represents foreign exchange spot rates.

⁽²⁾

Excluded component represents cross-currency basis spread and interest rates.

Summary of cash flow hedges

The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands):



Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended September 30,						Nine Months Ended September 30,
		2019			2018			2019			2018
Foreign currency forward and option contracts (included component) ⁽¹⁾		$	20,979		$	8,246		$	29,345		$	49,836
Foreign currency option contracts (excluded component) ⁽²⁾		(1,518		)	—			(2,923		)	—
Total		$	19,461		$	8,246		$	26,422		$	49,836

Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
		Three Months Ended September 30,						Nine Months Ended September 30,
	Location of gain or (loss)	2019			2018			2019			2018
Foreign currency forward contracts	Revenues	$	27,843		$	(3,294	)	$	56,388		$	(34,613	)
Foreign currency forward contracts	Costs and operating expenses	(14,474		)	1,441			(29,548		)	17,542
Total		$	13,369		$	(1,853	)	$	26,840		$	(17,071	)

Amount of gain or (loss) excluded from effectiveness testing included in income:
		Three Months Ended September 30,						Nine Months Ended September 30,
	Location of gain or (loss)	2019			2018			2019			2018
Foreign currency forward contracts	Other income (expense)	$	—		$	3,860		$	88		$	10,290
Foreign currency option contracts (excluded component) ⁽²⁾	Revenues	(538		)	—			(555		)	—
Total		$	(538	)	$	3,860		$	(467	)	$	10,290


⁽¹⁾	Included component represents foreign exchange spot rates.

⁽²⁾

Excluded component represents option's time value.

Schedule of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations

The following table presents the effect of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations (in thousands):



Amount of gain or (loss) recognized in earnings:
		Three Months Ended September 30,						Nine Months Ended September 30,
	Location of gain or (loss)	2019			2018			2019			2018
Embedded derivatives	Revenues	$	2,830		$	742		$	3,552		$	2,206
Economic hedge of embedded derivatives	Revenues	(3,221		)	(422		)	(2,680		)	(1,360		)
Foreign currency forward contracts	Other income (expense)	77,644			17,061			96,143			60,737
Total		$	77,253		$	17,381		$	97,015		$	61,583

Schedule of derivative instruments recognized in the Company's condensed consolidated balance sheets

The following table presents the fair value of derivative instruments recognized in the Company's condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 (in thousands):



	September 30, 2019				December 31, 2018
	Assets ⁽¹⁾		Liabilities ⁽²⁾		Assets ⁽¹⁾		Liabilities ⁽²⁾
Designated as hedging instruments:
Cash flow hedges
Foreign currency forward and option contracts	$	59,401	$	—	$	38,606	$	865
Net investment hedges
Cross-currency interest rate swaps	46,449		—		—		—
Total designated as hedging	105,850		—		38,606		865

Not designated as hedging instruments:
Embedded derivatives	7,131		1,336		4,656		2,426
Economic hedges of embedded derivatives	492		697		525		180
Foreign currency forward contracts	28,778		3		29,287		6,269
Total not designated as hedging	36,401		2,036		34,468		8,875
Total Derivatives	$	142,251	$	2,036	$	73,074	$	9,740


⁽¹⁾	As presented in the Company's condensed consolidated balance sheets within other current assets and other assets.

⁽²⁾

As presented in the Company's condensed consolidated balance sheets within other current liabilities and other liabilities.

Schedule of offsetting derivative assets and liabilities

The following table presents information related to these offsetting arrangements as of September 30, 2019 and December 31, 2018 (in thousands):



	Gross Amounts Offset in Consolidated Balance Sheet
	Gross Amounts		Gross Amounts Offset in the Balance Sheet		Net Amounts		Gross Amounts not Offset in the Balance Sheet			Net
September 30, 2019
Derivative assets	$	154,394	$	—	$	154,394	$	(6,307	)	$	148,087
Derivative liabilities	8,203		—		8,203		(6,307		)	1,896

December 31, 2018
Derivative assets	$	73,074	$	—	$	73,074	$	(6,517	)	$	66,557
Derivative liabilities	9,740		—		9,740		(6,517		)	3,223

Schedule of offsetting derivative assets and liabilities

The following table presents information related to these offsetting arrangements as of September 30, 2019 and December 31, 2018 (in thousands):



	Gross Amounts Offset in Consolidated Balance Sheet
	Gross Amounts		Gross Amounts Offset in the Balance Sheet		Net Amounts		Gross Amounts not Offset in the Balance Sheet			Net
September 30, 2019
Derivative assets	$	154,394	$	—	$	154,394	$	(6,307	)	$	148,087
Derivative liabilities	8,203		—		8,203		(6,307		)	1,896

December 31, 2018
Derivative assets	$	73,074	$	—	$	73,074	$	(6,517	)	$	66,557
Derivative liabilities	9,740		—		9,740		(6,517		)	3,223

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details