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Derivatives and Hedging
 6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging

The Company enters into a limited number of derivative contracts to mitigate the cash flow risk associated with changes in interest rates on variable-rate debt and changes in foreign exchange rates on forecasted foreign currency transactions. The Company accounts for its outstanding derivative contracts in accordance with FASB ASC Topic 815, which requires all derivatives, including derivatives designated as accounting hedges, to be recorded on the balance sheet at fair value. The following tables provide information regarding the Company’s outstanding derivatives contracts as of the dates indicated (in thousands, except for number of contracts):
June 30, 2019
 
 
 
 
 
 
 
 
 
 
Derivative Contract Type
 
Number of
Contracts
 
Notional
Amounts
 
Fair Value
Asset
(Liability), Net (3)
 
Balance
Sheet
Line Item
 
Unrealized
Loss Recorded
in AOCI/L
Interest rate swaps (1)
 
7

 
$
2,100,000

 
$
(64,591
)
 
Other liabilities
 
$
(46,990
)
Foreign currency forwards (2)
 
38

 
240,826

 
(451
)
 
Accrued liabilities
 
—

Total
 
45

 
$
2,340,826

 
$
(65,042
)
 
 
 
$
(46,990
)

December 31, 2018
 
 
 
 
 
 
 
 
 
 
Derivative Contract Type
 
Number of Contracts
 
Notional
Amounts
 
Fair Value
Asset
(Liability), Net (3)
 
Balance
Sheet
Line Item
 
Unrealized
Loss Recorded
in AOCI/L
Interest rate swaps (1)
 
7

 
$
2,100,000

 
$
(10,681
)
 
Other liabilities
 
$
(7,770
)
Foreign currency forwards (2)
 
135

 
927,375

 
(1,942
)
 
Accrued liabilities
 
—

Total
 
142

 
$
3,027,375

 
$
(12,623
)
 
 
 
$
(7,770
)
 
 
(1)
The swaps have been designated and are accounted for as cash flow hedges of the forecasted interest payments on borrowings. As a result, changes in the fair values of the swaps are deferred and recorded in AOCI/L, net of tax effect. Note 6 — Debt provides additional information.
(2)
The Company has foreign exchange transaction risk because it typically enters into transactions in the normal course of business that are denominated in foreign currencies that differ from the local functional currency. The Company enters into short-term foreign currency forward exchange contracts to mitigate the cash flow risk associated with changes in foreign currency rates on forecasted foreign currency transactions. These contracts are accounted for at fair value with realized and unrealized gains and losses recognized in Other (expense) income, net because the Company does not designate these contracts as hedges for accounting purposes. All of the outstanding foreign currency forward exchange contracts at June 30, 2019 matured by the end of July 2019.
(3)
See Note 10 — Fair Value Disclosures for the determination of the fair values of these instruments.

At June 30, 2019, all of the Company’s derivative counterparties were investment grade financial institutions. The Company did not have any collateral arrangements with its derivative counterparties and none of the derivative contracts contained credit-risk related contingent features. The following table provides information regarding amounts recognized in the Condensed Consolidated Statements of Operations for derivative contracts for the periods indicated (in thousands):
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
Amount recorded in:
 
2019
 
2018
 
2019
 
2018
Interest (income) expense, net (1)
 
$
(2,240
)
 
$
(355
)
 
$
(4,511
)
 
$
589

Other expense, net (2)
 
2,535

 
8,907

 
697

 
1,675

Total expense (income), net
 
$
295

 
$
8,552

 
$
(3,814
)
 
$
2,264

 
 
(1)
Consists of interest (income) expense from interest rate swap contracts.
(2)
Consists of net realized and unrealized gains and losses on foreign currency forward contracts.