DERIVATIVE AND HEDGING INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amount of Derivatives Instruments

The following presents the notional amount of derivative instruments as of the dates indicated (in thousands):

	June 30, 2020		December 31, 2019
Derivatives designated as cash flow hedges:
Denominated in U.S. Dollars (1)	$	1,740,000	$	1,490,000
Denominated in Canadian Dollars (2)	$	250,000	$	125,000
Derivatives designated as net investment hedges:
Denominated in Canadian Dollars	$	53,562	$	54,489
Financial instrument designated as net investment hedge:
Denominated in Canadian Dollars	$	125,000	$	125,000
Derivatives not designated as net investment hedges:
Denominated in Canadian Dollars	$	2,738	$	1,811

⁽¹⁾ Balance includes four forward starting interest rate swaps and one forward starting interest rate collar with an effective date of August 2020 and two forward starting interest rate swaps and one forward starting interest rate collar with an effective date of January 2021. The forward starting interest rate swaps and forward starting interest rate collars have an aggregate initial notional amount of $645.0 million accreting to $845.0 million in January 2023. Balance as of June 30, 2020 also includes six forward starting interest rate swaps with an effective date of May 2024 and an aggregate notional amount of $250.0 million.

⁽²⁾ 

Balance as of June 30, 2020 includes two forward starting interest rate swaps with an effective date of January 2021 and an aggregate notional amount of CAD $125.0 million.

Derivative and Financial Instruments Designated as Hedging Instruments

The following is a summary of the derivative and financial instruments designated as hedging instruments held by the Company at June 30, 2020 and December 31, 2019 (dollars in thousands):    

		Count as of June 30, 2020	Fair Value				Maturity Dates
Type	Designation		June 30, 2020		December 31, 2019			Balance Sheet Location
Assets:
Interest rate swaps	Cash flow	—	$	—	$	4,239	N/A	Accounts receivable, prepaid expenses and other assets, net
Forward starting interest rate swaps	Cash flow	5	1,228		—		2034	Accounts receivable, prepaid expenses and other assets, net
Cross currency interest rate swaps	Net investment	2	5,778		3,238		2025	Accounts receivable, prepaid expenses and other assets, net
			$	7,006	$	7,477
Liabilities:
Interest rate swaps	Cash flow	11	$	8,630	$	—	2020-2023	Accounts payable and accrued liabilities
Forward starting interest rate swaps	Cash flow	9	$	31,889	$	494	2024-2034	Accounts payable and accrued liabilities
Forward starting interest rate collars	Cash flow	2	3,172		132		2024	Accounts payable and accrued liabilities
CAD term loan	Net investment	1	91,625		96,025		2024	Term loans, net
			$	135,316	$	96,651

Effect of Derivative Financial Instruments on the Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Equity

The following presents the effect of the Company’s derivative and financial instruments designated as hedging instruments on the condensed consolidated statements of income and the condensed consolidated statements of equity for the three and six months ended June 30, 2020 and 2019 (in thousands):

	(Loss) Gain Recognized in Other Comprehensive Income (Loss)
	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019			Income Statement Location
Cash Flow Hedges:
Interest rate products	$	(6,182	)	$	(8,126	)	$	(46,647	)	$	(19,737	)	Interest expense
Net Investment Hedges:
Foreign currency products	(1,599		)	(42		)	2,588			(1,276		)	N/A
CAD term loan	(3,413		)	(1,863		)	4,400			(3,788		)	N/A
	$	(11,194	)	$	(10,031	)	$	(39,659	)	$	(24,801	)

	(Loss) Gain Reclassified from Accumulated Other Comprehensive Income (Loss) into Income
	Three Months Ended June 30,					Six Months Ended June 30,
	2020			2019		2020			2019		Income Statement Location
Cash Flow Hedges:
Interest rate products	$	(2,398	)	$	1,695	$	(2,165	)	$	3,608	Interest expense

Gross Presentation, Effects of Offsetting, and Net Presentation of Derivatives - Assets

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2020 and December 31, 2019 (in thousands):

	As of June 30, 2020
	Gross Amounts of Recognized Assets / Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets / Liabilities presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
							Financial Instruments			Cash Collateral Received		Net Amount
Offsetting Assets:
Derivatives	$	7,006	$	—	$	7,006	$	(6,956	)	$	—	$	50
Offsetting Liabilities:
Derivatives	$	43,691	$	—	$	43,691	$	(6,956	)	$	—	$	36,735

	As of December 31, 2019
	Gross Amounts of Recognized Assets / Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets / Liabilities presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
							Financial Instruments			Cash Collateral Received		Net Amount
Offsetting Assets:
Derivatives	$	7,477	$	—	$	7,477	$	(544	)	$	—	$	6,933
Offsetting Liabilities:
Derivatives	$	626	$	—	$	626	$	(544	)	$	—	$	82

Gross Presentation, Effects of Offsetting, and Net Presentation of Derivatives - Liabilities

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2020 and December 31, 2019 (in thousands):

	As of June 30, 2020
	Gross Amounts of Recognized Assets / Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets / Liabilities presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
							Financial Instruments			Cash Collateral Received		Net Amount
Offsetting Assets:
Derivatives	$	7,006	$	—	$	7,006	$	(6,956	)	$	—	$	50
Offsetting Liabilities:
Derivatives	$	43,691	$	—	$	43,691	$	(6,956	)	$	—	$	36,735

	As of December 31, 2019
	Gross Amounts of Recognized Assets / Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets / Liabilities presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
							Financial Instruments			Cash Collateral Received		Net Amount
Offsetting Assets:
Derivatives	$	7,477	$	—	$	7,477	$	(544	)	$	—	$	6,933
Offsetting Liabilities:
Derivatives	$	626	$	—	$	626	$	(544	)	$	—	$	82