v3.25.4
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Outstanding Foreign Exchange Derivatives The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of
foreign currency risk (notional amounts in thousands):
December 31, 2025
December 31, 2024
Foreign Currency Derivatives
Number of
Instruments
Notional
Amount
Foreign Currency Derivatives
Number of
Instruments
Notional
Amount
Buy USD / Sell SEK Forward
2
kr 970,417
Buy USD / Sell SEK Forward
2
kr 971,180
Buy USD / Sell GBP Forward
6
£739,956
Buy USD / Sell GBP Forward
5
£604,739
Buy USD / Sell EUR Forward
10
€689,868
Buy USD / Sell EUR Forward
8
€603,910
Buy USD / Sell AUD Forward
7
A$371,141
Buy USD / Sell AUD Forward
6
A$355,703
Buy USD / Sell CAD Forward
3
C$120,557
Buy USD / Sell CHF Forward
1
CHF6,752
Buy USD / Sell CHF Forward
1
CHF52
The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign
currency risk (notional amounts in thousands):
December 31, 2025
December 31, 2024
Non-designated Hedges
Number of
Instruments
Notional
Amount
Non-designated Hedges
Number of
Instruments
Notional
Amount
Buy GBP / Sell USD Forward
2
£86,800
Buy GBP / Sell USD Forward
3
£54,400
Buy USD / Sell GBP Forward
2
£86,800
Buy USD / Sell GBP Forward
3
£54,400
Buy EUR / Sell USD Forward
3
€44,700
Buy USD / Sell EUR Forward
3
€44,700
Buy AUD / Sell USD Forward
2
A$10,200
Buy USD / Sell AUD Forward
2
A$10,200
Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate
risk (notional amounts in thousands):
December 31, 2025
Interest Rate Derivatives
Number of
Instruments
Notional Amount
Fixed Rate
Index
Maturity (Years)
Interest Rate Swaps
1
$35,600
3.51%
SOFR
5.0
Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk The following tables detail our outstanding interest rate derivatives that were designated as fair value hedges of interest rate
risk (notional amount in thousands):
December 31, 2025
Interest Rate Derivatives
Number of
Instruments
Notional Amount
Fixed Rate
Index
Maturity (Years)
Interest Rate Swaps
1
$450,000
3.81%
SOFR
3.9
December 31, 2024
Interest Rate Derivatives
Number of
Instruments
Notional Amount
Fixed Rate
Index
Maturity (Years)
Interest Rate Swaps
1
$450,000
3.81%
SOFR
4.9
Schedule of Carrying Amount and Cumulative Basis Adjustments on Hedged Items Designated as Fair Value Hedges The following tables detail the carrying amount and cumulative basis adjustments on hedged items designated as fair value
hedges ($ in thousands):
December 31, 2025
Line Item in the Consolidated Balance
Sheets in which the Hedged Item is
Included
Carrying Amount of the Hedged Assets/
Liabilities
Cumulative Amount of Fair Value Hedging
Adjustment Included in Carrying Amount
Senior secured notes, net
$450,597
$6,840
December 31, 2024
Line Item in the Consolidated Balance
Sheets in which the Hedged Item is
Included
Carrying Amount of the Hedged Assets/
Liabilities
Cumulative Amount of Fair Value Hedging
Adjustment Included in Carrying Amount
Senior secured notes, net
$437,759
$(4,424)
The following table presents the net gains (losses) on derivatives and the related hedged items in fair value hedging
relationships ($ in thousands):
Year Ended December 31,
2025
2024
Total interest and related expenses presented in the consolidated statements of
operations
$988,947
$1,289,972
Gains (losses) on fair value hedging relationships
Total gain on derivative instruments
$11,263
$(4,386)
Fair value basis adjustment on hedged items
(11,264)
4,424
Derivative settlements and accruals
(2,182)
(232)
Net loss on fair value hedging relationships(1)
$(2,183)
$(194)
(1)Included within interest and related expenses presented in the consolidated statements of operations.
Schedule of Derivative Instruments in Statement of Operations The following table presents the effect of our derivative financial instruments on our consolidated statements of operations
($ in thousands):
Increase (Decrease) to Net Interest Income Recognized from Derivatives
Year Ended December 31,
Derivatives in Hedging
Relationships
Location of Income
(Expense) Recognized
2025
2024
2023
Designated Hedges
Interest Income(1)
$18,771
$16,490
$25,439
Designated Hedges
Interest Expense(2)
(2,182)
1,119
893
Non-Designated Hedges
Interest Income(1)
(122)
(44)
65
Non-Designated Hedges
Interest Expense(3)
(2,107)
4
(71)
Total
$14,360
$17,569
$26,326
(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate
differentials between the applicable base rate for our foreign currency investments and prevailing U.S. interest rates.
These forward contracts effectively convert the foreign currency rate exposure for such investments to
USD-equivalent interest rates.
(2)Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest
rate swap.
(3)Represents the realized loss on an interest rate swap related to our Bank Loan Portfolio Joint Venture that was
entered into and subsequently terminated during 2025, and the spot rate movement in our non-designated foreign
currency hedges, which are marked to market and recognized in interest expense.
Summary of Fair Value of Derivative Financial Instruments The following table summarizes the fair value of our derivative financial instruments ($ in thousands):
Fair Value of Derivatives in an Asset
Position(1) as of
Fair Value of Derivatives in a
Liability Position(2) as of
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Derivatives designated as hedging instruments
Foreign exchange contracts
$22
$69,433
$24,994
$—
Interest rate derivatives
6,877
—
76
4,386
Total derivatives designated as hedging
instruments
$6,899
$69,433
$25,070
$4,386
Derivatives not designated as hedging instruments
Foreign exchange contracts
$3,593
$3,021
$1,526
$852
Interest rate derivatives
—
—
—
—
Total derivatives not designated as hedging
instruments
$3,593
$3,021
$1,526
$852
Total derivatives
$10,492
$72,454
$26,596
$5,238
(1)Included in other assets in our consolidated balance sheets.
(2)Included in other liabilities in our consolidated balance sheets.
Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Comprehensive Income And Operations The following table presents the effect of our derivative financial instruments on our consolidated statements of
comprehensive income and operations ($ in thousands):
Derivatives in Hedging
Relationships
Amount of Gain (Loss) Recognized in
OCI on Derivatives
Amount of
Gain (Loss) Reclassified from
Accumulated OCI into Income
Year Ended December 31,
Location of Gain
(Loss) Reclassified
from Accumulated
OCI into Income
Year Ended December 31,
2025
2024
2023
2025
2024
2023
Net Investment Hedges
Foreign exchange
contracts(1)
$(166,732)
$88,591
$(76,224)
Interest Expense
$18,774
$—
$—
Cash Flow Hedges
Interest rate
derivatives
(73)
998
1,210
Interest Expense(2)
2
1,315
893
Total
$(166,805)
$89,589
$(75,014)
$18,776
$1,315
$893
(1)During the years ended December 31, 2025, 2024 and 2023, we paid net cash settlements of $72.2 million,
$59.8 million, and $69.9 million, respectively, on our foreign currency forward contracts. Those amounts are
included as a component of accumulated other comprehensive income on our consolidated balance sheets.