Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of net investment hedges

The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019 was as follows (in thousands):

Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended March 31,
		2020		2019
Foreign currency debt		$	99,102	$	63,914
Cross-currency interest rate swaps (included component) (1)		14,140		15,515
Cross-currency interest rate swaps (excluded component) (2)		31,704		(2,590		)
Total		$	144,946	$	76,839
Amount of gain or (loss) recognized in earnings:
	Location of gain or (loss)	Three Months Ended March 31,
		2020		2019
Cross-currency interest rate swaps (excluded component) (2)	Interest expense	$	5,089	$	4,163
Total		$	5,089	$	4,163

⁽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 months ended March 31, 2020 and 2019 was as follows (in thousands):

Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended March 31,
		2020			2019
Foreign currency forward and option contracts (included component) (1)		$	28,025		$	10,965
Foreign currency option contracts (excluded component) (2)		1,318			—
Interest rate locks		(26,232		)	—
Total		$	3,111		$	10,965
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
		Three Months Ended March 31,
	Location of gain or (loss)	2020			2019
Foreign currency forward contracts	Revenues	$	21,219		$	9,861
Foreign currency forward contracts	Costs and operating expenses	(11,000		)	(5,329		)
Interest rate locks	Interest Expense	168			—
Total		$	10,387		$	4,532
Amount of gain or (loss) excluded from effectiveness testing included in income:
		Three Months Ended March 31,
	Location of gain or (loss)	2020			2019
Foreign currency forward contracts	Other income (expense)	$	—		$	88
Foreign currency option contracts (excluded component) (2)	Revenues	(521		)	—
Total		$	(521	)	$	88

⁽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 March 31,
	Location of gain or (loss)	2020			2019
Embedded derivatives	Revenues	$	7,451		$	907
Economic hedge of embedded derivatives	Revenues	(7,902		)	(57		)
Foreign currency forward contracts	Other income (expense)	133,824			8,351
Total		$	133,373		$	9,201

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 March 31, 2020 and December 31, 2019 (in thousands):

	March 31, 2020				December 31, 2019
	Assets (1)		Liabilities (2)		Assets (1)		Liabilities (2)
Designated as hedging instruments:
Cash flow hedges
Foreign currency forward and option contracts	$	46,544	$	19	$	24,853	$	5,898
Interest rate locks	4,373		21,295		—		—
Net investment hedges
Cross-currency interest rate swaps	72,095		—		26,251		—
Total designated as hedging	123,012		21,314		51,104		5,898
Not designated as hedging instruments:
Embedded derivatives	10,733		1,102		4,595		2,268
Economic hedges of embedded derivatives	4,507		23		1,367		—
Foreign currency forward contracts	73,939		59,751		641		27,446
Total not designated as hedging	89,179		60,876		6,603		29,714
Total Derivatives	$	212,191	$	82,190	$	57,707	$	35,612

⁽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 March 31, 2020 and December 31, 2019 (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
March 31, 2020
Derivative assets	$	224,453	$	—	$	224,453	$	(85,190	)	$	139,263
Derivative liabilities	88,477		—		88,477		(85,190		)	3,287
December 31, 2019
Derivative assets	$	76,640	$	—	$	76,640	$	(37,820	)	$	38,820
Derivative liabilities	45,832		—		45,832		(37,820		)	8,012

Schedule of offsetting derivative assets and liabilities

The following table presents information related to these offsetting arrangements as of March 31, 2020 and December 31, 2019 (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
March 31, 2020
Derivative assets	$	224,453	$	—	$	224,453	$	(85,190	)	$	139,263
Derivative liabilities	88,477		—		88,477		(85,190		)	3,287
December 31, 2019
Derivative assets	$	76,640	$	—	$	76,640	$	(37,820	)	$	38,820
Derivative liabilities	45,832		—		45,832		(37,820		)	8,012