Net Investment Hedges. We are exposed to the impact of foreign exchange rate fluctuations on the value of investments in our foreign subsidiaries whose functional currencies are other than the U.S. Dollar. In order to mitigate the impact of foreign currency exchange rates, we have entered into various foreign currency debt obligations, which are designated as hedges against our net investments in foreign subsidiaries. As of December 31, 2021 and 2020, the total principal amounts of foreign currency debt obligations designated as net investment hedges were $1.5 billion and $1.9 billion, respectively.

We also use cross-currency interest rate swaps, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt, to hedge the currency exposure associated with our net investment in our foreign subsidiaries. As of December 31, 2021 and 2020, we had cross-currency interest rate swaps outstanding with notional amounts of $4.0 billion and $3.3 billion respectively, with maturity dates ranging through 2026.

From time to time, we use foreign currency forward contracts to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries. As of December 31, 2021 and 2020, the total notional amount of foreign currency forward contracts designated as net investment hedges were $375.7 million and $355.6 million respectively.


Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Years Ended December 31,
		2021		2020		2019
Foreign currency debt		$	93,945	$	(208,281)	$	47,033
Cross-currency interest rate swaps (included component) (1)		282,935		(218,843)		15,514
Cross-currency interest rate swaps (excluded component) (2)		(52,517)		(347)		10,737
Foreign currency forward contracts (included component) (1)		2,621		(17,115)		—
Foreign currency forward contracts (excluded component) (3)		(2)		32		—
Total		$	326,982	$	(444,554)	$	73,284

Amount of gain or (loss) recognized in earnings:
	Location of gain or (loss)	Years Ended December 31,
		2021		2020		2019
Cross-currency interest rate swaps (excluded component) (2)	Interest expense	$	44,933	$	27,196	$	19,261
Foreign currency forward contracts (excluded component) (3)	Interest expense	242		42		—
Total		$	45,175	$	27,238	$	19,261

Cash Flow Hedges. We hedge our foreign currency transaction exposure for forecasted revenues and expenses in our 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 we use to hedge this exposure are designated as cash flow hedges. As of December 31, 2021 and 2020, the total notional amounts of these foreign exchange contracts were $831.2 million and $912.9 million, respectively.

As of December 31, 2021, our foreign currency cash flow hedge instruments had maturity dates ranging from January 2022 to December 2023 and we had a net gain of $13.3 million recorded within accumulated other comprehensive income (loss) to be reclassified to revenues and expenses relating to these cash flow hedges as they mature in the next 12 months. As of December 31, 2020, our foreign currency cash flow hedge instruments had maturity dates ranging from January 2021 to December 2022 and we had a net loss of $35.4 million recorded within accumulated other comprehensive income (loss) to be reclassified to revenues and expenses relating to these cash flow hedges as they mature in the next 12 months.

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

We hedge the interest rate exposure created by anticipated fixed rate debt issuances through the use of treasury locks and swap locks (collectively, interest rate locks), which are designated as cash flow hedges. As of December 31, 2021, the total notional amount of interest rate locks outstanding was $800.0 million. As of December 31, 2020, we had no interest rate locks outstanding. During the year ended December 31, 2021, interest rate locks with a combined aggregate notional amount of $1.3 billion were settled related to the issuance of senior notes during the year. When interest rate locks are settled, any gain or loss from the transactions is deferred and included as a component of other comprehensive income (loss) and is amortized to interest expense over the term of the forecasted hedged transaction which is equivalent to the term of the interest rate locks. As of December 31, 2021 and 2020, we had a net loss of $3.9 million and $4.1 million, respectively, recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months for interest rate locks.


Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Years Ended December 31,
		2021		2020		2019
Foreign currency forward and option contracts (included component) (1)		$	67,767	$	(68,573)	$	(9,945)
Foreign currency option contracts (excluded component) (2)		151		1,655		(1,807)
Interest rate locks		9,624		(30,393)		4,972
Total		$	77,542	$	(97,311)	$	(6,780)

Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
		Years Ended December 31,
	Location of gain or (loss)	2021		2020		2019
Foreign currency forward contracts	Revenues	$	(39,297)	$	37,198	$	80,046
Foreign currency forward contracts	Costs and operating expenses	20,496		(19,890)		(41,262)
Interest rate locks	Interest Expense	(4,056)		(1,204)		79
Total		$	(22,857)	$	16,104	$	38,863

Amount of gain or (loss) excluded from effectiveness testing and included in income:
		Years Ended December 31,
	Location of gain or (loss)	2021		2020		2019
Foreign currency forward contracts	Other income (expense)	$	—	$	—	$	88
Foreign currency option contracts (excluded component) (2)	Revenues	(244)		(1,761)		(1,082)
Total		$	(244)	$	(1,761)	$	(994)

Embedded Derivatives. We are deemed to have foreign currency forward contracts embedded in certain of our 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 on our balance sheet at their fair value. The majority of these embedded derivatives arise as a result of our foreign subsidiaries pricing their customer contracts in U.S. Dollars.

Economic Hedges of Embedded Derivatives. We use foreign currency forward contracts to manage the foreign exchange risk associated with our 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. We also use 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 our 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 December 31, 2021 and 2020, the total notional amounts of these foreign currency contracts were $3.3 billion and $3.4 billion, respectively.


Amount of gain or (loss) recognized in earnings:
		Years Ended December 31,
	Location of gain or (loss)	2021		2020		2019
Embedded derivatives	Revenues	$	3,503	$	(3,043)	$	63
Economic hedge of embedded derivatives	Revenues	(5,937)		2,142		550
Foreign currency forward contracts	Other income (expense)	129,496		(127,648)		36,846
Total		$	127,062	$	(128,549)	$	37,459


	December 31, 2021				December 31, 2020
	Assets (1)		Liabilities (2)		Assets (1)		Liabilities (2)
Designated as hedging instruments:
Cash flow hedges
Foreign currency forward and option contracts	$	22,866	$	7,618	$	351	$	52,804
Interest rate locks	8,662		—		—		—
Net investment hedges
Cross-currency interest rate swaps	56,921		19,441		—		192,939
Foreign currency forward contracts	156		70		—		17,041
Total designated as hedging	88,605		27,129		351		262,784

Not designated as hedging instruments:
Embedded derivatives	3,247		652		3,255		3,858
Economic hedges of embedded derivatives	2,232		637		4,372		12
Foreign currency forward contracts	83,265		5,854		3,721		133,805
Total not designated as hedging	88,744		7,143		11,348		137,675
Total Derivatives	$	177,349	$	34,272	$	11,699	$	400,459

We enter into master netting agreements with our 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 consolidated balance sheets, we do 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 December 31, 2021 and 2020 (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
December 31, 2021
Derivative assets	$	207,037	$	—	$	207,037	$	(47,538)	$	159,499
Derivative liabilities	49,326		—		49,326		(47,538)		1,788

December 31, 2020
Derivative assets	$	38,447	$	—	$	38,447	$	(35,100)	$	3,347
Derivative liabilities	415,628		—		415,628		(35,100)		380,528