Net Investment Hedges. The Company is exposed to the impact of foreign exchange rate fluctuations on the value of investments in its foreign subsidiaries whose functional currencies are other than the U.S. Dollar. In order to mitigate the impact of foreign currency exchange rates, the Company has entered into various foreign currency debt obligations, which are designated as hedges against the Company's net investments in foreign subsidiaries. As of September 30, 2020 and December 31, 2019, the total principal amounts of foreign currency debt obligations designated as net investment hedges were $1.8 billion and $4.1 billion, respectively.

The Company also uses cross-currency interest rate swaps to hedge a portion of its net investment in its European operations. As of September 30, 2020, U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $3.3 billion were outstanding. As of December 31, 2019, U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $750.0 million were outstanding. At maturity of each outstanding contract, the Company will receive U.S. Dollars from and pay Euros to the contract counterparty. During the term of each contract, the Company receives interest payments in U.S. Dollars and makes interest payments in Euros based on a notional amount and fixed interest rates determined at contract inception.

From time to time, the Company uses foreign currency forward contracts to hedge against the effect of foreign exchange rate fluctuations on a portion of its net investment in its foreign subsidiaries. As of September 30, 2020, the total notional amount of foreign currency forward contracts designated as net investment hedges was $355.6 million. The Company had no foreign currency forward contracts designated as net investment hedges outstanding as of December 31, 2019.


Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Foreign currency debt		$	(130,774)	$	151,825	$	(116,887)	$	181,431
Cross-currency interest rate swaps (included component) (1)		(78,226)		30,505		(74,419)		36,331
Cross-currency interest rate swaps (excluded component) (2)		(16,588)		6,566		13,606		10,117
Foreign currency forward contracts (included component) (1)		(1,485)		—		(1,485)		—
Foreign currency forward contracts (excluded component) (3)		(28)		—		(28)		—
Total		$	(227,101)	$	188,896	$	(179,213)	$	227,879

Amount of gain or (loss) recognized in earnings:
	Location of gain or (loss)	Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Cross-currency interest rate swaps (excluded component) (2)	Interest expense	6,613		5,072		17,161		14,163
Foreign currency forward contracts (excluded component) (3)	Interest expense	1		—		1		—
Total		$	6,614	$	5,072	$	17,162	$	14,163

Cash Flow Hedges. The Company hedges its foreign currency translation exposure for forecasted revenues and expenses in its EMEA region between the U.S. Dollar and the British Pound, Euro, Swedish Krona and Swiss Franc. The foreign currency forward and option contracts that the Company uses to hedge this exposure are designated as cash flow hedges. As of September 30, 2020 and December 31, 2019, the total notional amounts of these foreign exchange contracts were $949.2 million and $824.8 million, respectively. As of September 30, 2020, the Company's foreign exchange contracts had maturity dates ranging from October 2020 to September 2022 and the Company recorded a net loss of $7.8 million within accumulated other comprehensive income (loss) relating to these foreign exchange contracts that will be reclassified to revenues and expenses as they mature in the next 12 months. As of December 31, 2019, the Company's foreign exchange contracts had maturity dates ranging from January 2020 to December 2021 and the Company recorded a net gain of $16.3 million within accumulated other comprehensive income (loss) relating to these foreign exchange contracts that will be reclassified to revenues and expenses as they mature in the next 12 months.

The Company enters into intercompany hedging instruments ("intercompany derivatives") with wholly-owned subsidiaries of the Company in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. Dollar. Simultaneously, the Company enters into derivative contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives.

The Company hedges the interest rate exposure created by anticipated fixed rate debt issuances through the use of treasury locks and forward starting swaps (collectively, interest rate locks), which are designated as cash flow hedges. As of September 30, 2020, the total notional amount of interest rate locks outstanding was $644.8 million.

As of December 31, 2019, the Company had no interest rate locks outstanding. During the nine months ended September 30, 2020, interest rate locks with a combined aggregate notional amount of $1.25 billion were settled related to the issuance of the 2025 Notes, 2027 Notes, 2030 Notes, and 2050 Notes in June 2020 as described in Note 10 below. When interest rate locks are settled, any accumulated gain or loss included as a component of other comprehensive income (loss) are amortized to interest expense over the term of the interest rate locks. As of September 30, 2020, the Company recorded a net loss of $3.6 million within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months for interest rate locks. As of December 31, 2019, the net loss and gain in accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months for interest rate locks was not significant.


Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Foreign currency forward and option contracts (included component)(1)		$	(40,770)	$	20,979	$	(35,092)	$	29,345
Foreign currency option contracts (excluded component) (2)		639		(1,518)		2,315		(2,923)
Interest rate locks		(2,420)		—		(29,302)		—
Total		$	(42,551)	$	19,461	$	(62,079)	$	26,422

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)	2020		2019		2020		2019
Foreign currency forward contracts	Revenues	$	2,904	$	27,843	$	44,681	$	56,388
Foreign currency forward contracts	Costs and operating expenses	(1,951)		(14,474)		(23,449)		(29,548)
Interest rate locks	Interest Expense	(731)		—		(473)		—
Total		$	222	$	13,369	$	20,759	$	26,840

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)	2020		2019		2020		2019
Foreign currency forward contracts	Other income (expense)	$	—	$	—	$	—	$	88
Foreign currency option contracts (excluded component) (2)	Revenues	(430)		(538)		(1,454)		(555)
Total		$	(430)	$	(538)	$	(1,454)	$	(467)

Embedded Derivatives. The Company is deemed to have foreign currency forward contracts embedded in certain of the Company's customer agreements that are priced in currencies different from the functional or local currencies of the parties involved. These embedded derivatives are separated from their host contracts and carried

Economic Hedges of Embedded Derivatives. The Company uses foreign currency forward contracts to manage the foreign exchange risk associated with the Company's customer agreements that are priced in currencies different from the functional or local currencies of the parties involved ("economic hedges of embedded derivatives"). Foreign currency forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date.

Foreign Currency Forward Contracts. The Company also uses foreign currency forward contracts to manage the foreign exchange risk associated with certain foreign currency-denominated monetary assets and liabilities. As a result of foreign currency fluctuations, the U.S. Dollar equivalent values of its foreign currency-denominated monetary assets and liabilities change. Gains and losses on these contracts are included in other income (expense), on a net basis, along with the foreign currency gains and losses of the related foreign currency-denominated monetary assets and liabilities associated with these foreign currency forward contracts. As of September 30, 2020 and December 31, 2019, the total notional amounts of these foreign currency contracts were $4.6 billion and $2.5 billion, respectively.


Amount of gain or (loss) recognized in earnings:
		Three Months Ended September 30,				Nine Months Ended September 30,
	Location of gain or (loss)	2020		2019		2020		2019
Embedded derivatives	Revenues	$	(3,308)	$	2,830	$	1,402	$	3,552
Economic hedge of embedded derivatives	Revenues	3,259		(3,221)		(2,342)		(2,680)
Foreign currency forward contracts	Other income (expense)	(50,022)		77,644		(29,214)		96,143
Total		$	(50,071)	$	77,253	$	(30,154)	$	97,015


	September 30, 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	$	4,919	$	22,792	$	24,853	$	5,898
Interest rate locks	—		3,848		—		—
Net investment hedges
Cross-currency interest rate swaps	18,465		53,026		26,251		—
Foreign currency forward contracts	—		1,512		—		—
Total designated as hedging	23,384		81,178		51,104		5,898

Not designated as hedging instruments:
Embedded derivatives	5,562		1,754		4,595		2,268
Economic hedges of embedded derivatives	691		—		1,367		—
Foreign currency forward contracts	14,257		35,706		641		27,446
Total not designated as hedging	20,510		37,460		6,603		29,714
Total Derivatives	$	43,894	$	118,638	$	57,707	$	35,612

The Company presents its derivative instruments and the accrued interest related to cross-currency interest rate swaps at gross fair values in the condensed consolidated balance sheets. The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation on the condensed consolidated balance sheets, the Company does not offset fair value amounts recognized for derivative instruments or the accrued interest related to cross-currency interest rate swaps under master netting arrangements. The following table presents information related to these offsetting arrangements as of September 30, 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
September 30, 2020
Derivative assets	$	63,037	$	—	$	63,037	$	(56,415)	$	6,622
Derivative liabilities	129,889		—		129,889		(56,415)		73,474

December 31, 2019
Derivative assets	$	76,640	$	—	$	76,640	$	(37,820)	$	38,820
Derivative liabilities	45,832		—		45,832		(37,820)		8,012