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Derivative Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In the normal course of business, our operations are exposed to economic risks from interest rates and foreign
currency exchange rates. We may enter into derivative financial instruments to offset these underlying economic
risks.
Derivatives Designated as Hedging Instruments - Cash Flow Hedges
We enter into foreign currency forward contracts to sell GBP or EUR and buy USD to hedge the foreign currency
risk associated with forecasted foreign-currency-denominated cash flows. There are no amounts excluded from the
assessment of hedge effectiveness for cash flow hedges of foreign exchange risk. We also use variable-to-fixed
interest rate swaps and interest rate swaption agreements to add stability to interest expense and to manage our
exposure to interest rate movements associated with our term loans or forecasted debt issuances. If it becomes
probable that a forecasted transaction will not occur within the specific time period or within an additional two-month
period thereafter, any related amounts deferred in AOCI are recognized immediately in earnings. During the six
months ended June 30, 2026, and 2025, no such amounts were recognized through the caption entitled 'Interest' in
our consolidated statements of income and comprehensive income. 
Derivatives Designated as Hedging Instruments - Fair Value Hedges
Periodically, we enter into and designate fixed-to-floating interest rate swaps to manage interest rate risk by
managing our mix of fixed-rate and variable-rate debt. We also designate some of our cross-currency swaps as fair
value hedges as we use them to hedge foreign currency risk associated with changes in spot rates on foreign-
denominated on certain-foreign currency-denominated monetary assets and liabilities. For these hedging
instruments, we have elected to exclude the change in fair value of the cross-currency swaps attributable to the
difference between the spot and forward prices from the assessment of hedge effectiveness (the "excluded
component"). Changes in the fair value of the cross-currency swaps attributable to these excluded components are
recorded to other comprehensive income and subsequently recognized in 'Foreign currency and derivative loss, net'
on a systematic and rational basis, as net cash settlements and interest accruals on the respective cross currency
swaps occur, over the remaining life of the hedging instruments.
Derivatives Designated as Hedging Instruments - Net Investment Hedges
To mitigate the foreign currency exchange rate variations associated with our investment in EUR-denominated
foreign operations, we may enter into derivative instruments, such as cross-currency swaps that qualify as net
investment hedges under the criteria prescribed in accordance with ASC 815-20, Hedging - General. We use the
spot method of assessing hedge effectiveness and apply the consistent election to the excluded component by
recognizing changes in the fair value of the hedging instruments attributable to the excluded component in the same
manner as described above. Any difference between the change in the fair value of the excluded components and
the amounts recognized in earnings is reported in other comprehensive income as part of the foreign cumulative
translation adjustment. The gain or loss on the portion of the derivative instruments included in the assessment of
effectiveness is reported in other comprehensive income as part of the 'Foreign currency translation adjustment' line
item, to the extent the relationship is highly effective. If our net investment changes during a reporting period, the
hedge relationship will be assessed for whether a de-designation is warranted (only if the hedge notional amount is
outside of prescribed tolerance). Further, certain EUR-denominated and GBP-denominated bonds and borrowings
under our revolving credit facilities and term loans may also be designated as, and are effective as, net investment
hedges. Changes in the value of such borrowings, related to changes in the spot rates, will be recorded in the same
manner as foreign currency translation adjustments. As of June 30, 2026, the total principal amount of foreign
currency debt obligations designated as net investment hedges was $2.4 billion.
Derivatives Not Designated as Hedging Instruments
We enter into foreign currency exchange swap agreements to economically hedge foreign currency exposures
arising in the normal course of business. These derivative contracts generally mature within one year and are not
designated as hedge instruments for accounting purposes. As the currency exchange swap is not accounted for as
a hedging instrument, the change in fair value is recorded in earnings through the caption entitled 'Foreign currency
and derivative loss, net' in our consolidated statements of income and comprehensive income.
The following table summarizes the terms and fair values of our derivative financial instruments as of June 30,
2026 and December 31, 2025 (dollars in millions):
Derivative Type
Number of
Instruments (1)
Notional Amount
as of
Weighted
Average
Strike Rate (2)
Maturity
Date (3)
Fair Value - asset (liability)
as of
Derivatives Designated as Hedging
Instruments
June 30,
2026
December 31,
2025
June 30,
2026
December 31,
2025
Interest rate swaps (4)
12
$1,780.0
$2,105.0
3.27%
Aug 2027 -
Apr 2030
$17.3
$5.1
Cross-currency swaps - Fair
Value
15
1,720.0
720.0
(5)
Feb 2029 -
Jan 2036
(94.7)
(81.0)
Cross-currency swaps - Net
Investment
3
280.0
280.0
(6)
Oct 2032
(58.9)
(66.1)
Foreign currency forwards
58
730.7
519.7
(7)
Jul 2026 -
Dec 2028
14.8
(8.7)
$4,510.7
$3,624.7
$(121.5)
$(150.7)
Derivatives not Designated as Hedging
Instruments
Currency exchange swaps
9
$4,270.6
$2,972.8
(8)
Jul 2026 -
Jan 2027
$31.5
$(47.0)
$4,270.6
$2,972.8
$31.5
$(47.0)
Total of all Derivatives
$8,781.3
$6,597.5
$(90.0)
$(197.7)
(1)This column represents the number of instruments outstanding as of June 30, 2026.
(2)Weighted average strike rate is calculated using the notional value as of June 30, 2026.
(3)This column represents maturity dates for instruments outstanding as of June 30, 2026.
(4)During the three months ended June 30, 2026, we entered into five variable-to-fixed interest rate swaps in connection with the delayed draw
term loan under the Fund Credit Facilities.
(5)USD fixed rate of 5.625% and EUR weighted average fixed rate of 4.681%. USD fixed rate of 3.950% and GBP weighted average fixed rate of
4.392%. USD fixed rate of 4.910% and EUR weighted average fixed rate of 4.122%. USD fixed rate of 4.750% and EUR weighted average
fixed rate of 3.806%.
(6)USD fixed rate of 5.625% and EUR weighted average fixed rate of 4.716%.
(7)Weighted average exchange rates of 1.34 for GBP-USD and 1.21 for EUR-USD.
(8) Weighted average exchange rates of 0.87 for EUR-GBP, 1.34 for GBP-USD, and 4.32 for EUR-PLN.
We measure our derivatives at fair value and include the balances within 'Other assets, net' and 'Accounts payable
and accrued expenses' on our consolidated balance sheets.
We have agreements with each of our derivative counterparties containing provisions under which we could be
declared in default on our derivative obligations if repayment of our indebtedness is accelerated by the lender due to
our default.
The following table summarizes the amount of unrealized gain (loss) on derivatives and foreign currency translation
adjustments in other comprehensive income (in thousands):
Three months ended
June 30,
Six months ended
June 30,
Derivatives in Cash Flow Hedging Relationships
2026
2025
2026
2025
Interest rate swaps
$(5,130)
$(4,777)
$11,706
$(12,141)
Foreign currency forwards
269
(22,437)
23,515
(35,619)
Interest rate swaptions
(1,209)
(1,597)
(1,419)
(2,003)
Total derivatives in cash flow hedging relationships
$(6,070)
$(28,811)
$33,802
$(49,763)
Derivatives in Fair Value Hedging Relationships
Cross-currency swaps - Fair Value
$(37,480)
$(2,653)
$(29,020)
$7,674
Total derivatives in fair value hedging relationships
$(37,480)
$(2,653)
$(29,020)
$7,674
Total unrealized (loss) gain on derivatives, net
$(43,550)
$(31,464)
$4,782
$(42,089)
Derivatives and Non-derivatives in Net Investment Hedging
Relationships
Cross-currency swaps - Net Investment
$(3,722)
$(29,161)
$6,166
$(33,987)
Foreign currency debt
7,828
(16,620)
18,954
(20,747)
Total unrealized gain (loss) recorded in foreign currency
translation adjustment
$4,106
$(45,781)
$25,120
$(54,734)
The following table summarizes the amount of gain (loss) on derivatives reclassified from AOCI (in thousands):
Three months ended
June 30,
Six months ended
June 30,
Derivatives in Cash Flow Hedging
Relationships
Location of Increase (Decrease)
Recognized in Income
2026
2025
2026
2025
Interest rate swaps
Interest
$2,429
$2,808
$4,829
$6,192
Foreign currency forwards
Foreign currency and derivative
loss, net
(1,033)
(7,040)
(9,465)
(5,721)
Interest rate swaptions
Interest
57
81
117
184
Total derivatives in cash flow
hedging relationships
$1,453
$(4,151)
$(4,519)
$655
Derivatives in Fair Value Hedging
Relationships
Cross-currency swaps - Fair Value
(excluded component)
Foreign currency and derivative
loss, net
$2,065
$(344)
$1,943
$(129)
Total derivatives in fair value
hedging relationships
$2,065
$(344)
$1,943
$(129)
Derivatives in Net Investment
Hedging Relationships
Cross-currency swaps - Net
Investment (excluded component)
Foreign currency and derivative
loss, net
$442
$160
$1,070
$812
Total derivatives in net investment
hedging relationships
$442
$160
$1,070
$812
Net increase (decrease) to net
income
$3,960
$(4,335)
$(1,506)
$1,338
We expect to reclassify $13.6 million from AOCI as a decrease to interest expense relating to interest rate swaps
and $9.9 million from AOCI as a decrease to foreign currency loss relating to foreign currency forwards within the
next twelve months.
The following table details our foreign currency and derivative loss, net included in income (in thousands):
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Realized foreign currency and derivative loss, net:
Loss on the settlement of undesignated derivatives
$(28,991)
$(55,181)
$(54,398)
$(78,585)
Loss on the settlement of designated derivatives reclassified
from AOCI
(1,022)
(6,476)
(9,454)
(4,291)
Gain (loss) on the settlement of transactions with third parties
5,580
(505)
1,924
(502)
Total realized foreign currency and derivative loss, net
$(24,433)
$(62,162)
$(61,928)
$(83,378)
Unrealized foreign currency and derivative gain, net:
Gain (loss) on the change in fair value of undesignated
derivatives
$10,786
$(9,301)
$64,925
$(13,121)
Gain (loss) on remeasurement of certain assets and liabilities
4,823
67,075
(28,841)
89,566
Total unrealized foreign currency and derivative gain, net
$15,609
$57,774
$36,084
$76,445
Total foreign currency and derivative loss, net
$(8,824)
$(4,388)
$(25,844)
$(6,933)