v3.26.1
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule 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):
June 30, 2026
December 31, 2025
Foreign Currency Derivatives
Number of
Instruments
Notional
Amount
Foreign Currency Derivatives
Number of
Instruments
Notional
Amount
Buy USD / Sell SEK Forward
3
kr 940,679
Buy USD / Sell SEK Forward
2
kr 970,417
Buy USD / Sell EUR Forward
12
€695,360
Buy USD / Sell GBP Forward
6
£739,956
Buy USD / Sell GBP Forward
5
£684,764
Buy USD / Sell EUR Forward
10
€689,868
Buy USD / Sell AUD Forward
9
A$389,995
Buy USD / Sell AUD Forward
7
A$371,141
Buy USD / Sell CAD Forward
3
C$120,799
Buy USD / Sell CAD Forward
3
C$120,557
Buy USD / Sell CHF Forward
1
CHF52
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):
June 30, 2026
December 31, 2025
Non-designated Hedges
Number of
Instruments
Notional
Amount
Non-designated Hedges
Number of
Instruments
Notional
Amount
Buy EUR / Sell USD Forward
2
€119,100
Buy GBP / Sell USD Forward
2
£86,800
Buy USD / Sell EUR Forward
2
€119,100
Buy USD / Sell GBP Forward
2
£86,800
Buy GBP / Sell USD Forward
4
£111,100
Buy EUR / Sell USD Forward
3
€44,700
Buy USD / Sell GBP Forward
4
£111,100
Buy USD / Sell EUR Forward
3
€44,700
Buy AUD / Sell USD Forward
2
A$15,500
Buy AUD / Sell USD Forward
2
A$10,200
Buy USD / Sell AUD Forward
2
A$15,500
Buy USD / Sell AUD Forward
2
A$10,200
Schedule 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):
June 30, 2026
Interest Rate Derivatives
Number of
Instruments
Notional Amount
Fixed Rate
Index
Maturity (Years)
Interest Rate Swaps
1
$35,600
3.51%
SOFR
4.5
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
Schedule 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):
June 30, 2026
Interest Rate Derivatives
Number of
Instruments
Aggregate Notional
Amount
Fixed Rate
Index
Maturity (Years)
Interest Rate Swaps
2
$900,000
3.75% - 3.81%
SOFR
3.4 - 4.9
December 31, 2025
Interest Rate Derivatives
Number of
Instruments
Notional Amount
Fixed Rate
Index
Maturity (Years)
Interest Rate Swaps
1
$450,000
3.81%
SOFR
3.9
Schedule of Carrying Amount and Cumulative Basis Adjustments on Hedged Items Designated as Fair Value Hedges The following tables detail the carrying amount and cumulative basis adjustments on hedged items designated as fair value
hedges ($ in thousands):
June 30, 2026
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
$882,722
$(4,706)
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
$6,840
The following table presents the net gains (losses) on derivatives and the related hedged items in fair value hedging
relationships ($ in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Total interest and related expenses presented in the
consolidated statements of operations
$227,182
$264,727
$447,918
$506,960
Gains (losses) on fair value hedging relationships
Total (loss) gain on derivative instruments
$(8,159)
$9,124
$(11,453)
$12,288
Fair value basis adjustment on hedged items
8,245
(4,231)
11,546
(7,340)
Derivative settlements and accruals
175
624
328
1,442
Net gain on fair value hedging relationships(1)
$261
$5,517
$421
$6,390
(1)Included within interest and related expenses presented in the consolidated statements of operations.
Schedule of Derivative Instruments in Statement of Operations The following table presents the effect of our derivative financial instruments on our consolidated statements of operations
($ in thousands):
Increase (Decrease) to Net Interest Income Recognized from Derivatives
Three Months Ended June 30,
Six Months Ended June 30,
Derivatives in Hedging Relationships
Location of Income
(Expense) Recognized
2026
2025
2026
2025
Designated Hedges
Interest Income(1)
$3,504
$4,694
$7,464
$7,645
Designated Hedges
Interest Expense(2)
260
(625)
421
(1,210)
Non-Designated Hedges
Interest Income(1)
(7)
(50)
(12)
(50)
Non-Designated Hedges
Interest Expense(3)
17
(1,931)
24
(1,928)
Total
$3,774
$2,088
$7,897
$4,457
(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate
differentials between the applicable base rate for our foreign currency investments and prevailing U.S. interest rates.
These forward contracts effectively convert the foreign currency rate exposure for such investments to
USD-equivalent interest rates.
(2)Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest
rate swap.
(3)Represents the spot rate movement in our non-designated foreign currency hedges, which are marked-to-market and
recognized in interest and related expenses in our consolidated statements of operations. The amounts in the three
and six months ended June 30, 2025 also include a realized loss on an interest rate swap related to our Bank Loan
Portfolio Joint Venture that was entered into during the three months ended June 30, 2025 and subsequently
terminated.
Schedule of Fair Value of Derivative Financial Instruments The following table summarizes the fair value of our derivative financial instruments ($ in thousands):
Fair Value of Derivatives in an Asset
Position(1) as of
Fair Value of Derivatives in a Liability
Position(2) as of
June 30, 2026
December 31, 2025
June 30, 2026
December 31, 2025
Derivatives designated as hedging instruments
Foreign exchange contracts
$41,178
$22
$6
$24,994
Interest rate derivatives
580
6,877
4,576
76
Total derivatives designated as hedging
instruments
$41,758
$6,899
$4,582
$25,070
Derivatives not designated as hedging instruments
Foreign exchange contracts
$6,150
$3,593
$5,769
$1,526
Total derivatives not designated as hedging
instruments
$6,150
$3,593
$5,769
$1,526
Total derivatives
$47,908
$10,492
$10,351
$26,596
(1)Included in other assets in our consolidated balance sheets.
(2)Included in other liabilities in our consolidated balance sheets.
Schedule of Effect of Derivative Financial Instruments on Consolidated Statements of Comprehensive Income And Operations The following table presents the effect of our derivative financial instruments on our consolidated statements of
comprehensive income and operations ($ in thousands):
Derivatives in Hedging
Relationships
Amount of Gain (Loss) Recognized in
OCI on Derivatives
Location of Gain
(Loss)
Reclassified
from Accumulated
OCI into Income
Amount of Gain (Loss) Reclassified from
Accumulated OCI into Income
Three Months Ended
June 30, 2026
Six Months Ended
June 30, 2026
Three Months Ended
June 30, 2026
Six Months Ended
June 30, 2026
Net Investment Hedges
Foreign exchange
contracts(1)
$13,705
$41,895
Interest Expense
$3,504
$7,464
Cash Flow Hedges
Interest rate
derivatives(2)
427
684
Interest
Expense(3)
13
28
Total
$14,132
$42,579
$3,517
$7,492
(1)During the three and six months ended June 30, 2026, we paid net cash settlements of $4.6 million and
$22.6 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.
(2)During the three and six months ended June 30, 2026, we received net cash settlements of $0.1 million and
$0.2 million, respectively, on our interest rate swaps. Those amounts are included within interest and related
expenses in the consolidated statements of operations.
(3)During the three and six months ended June 30, 2026, we recorded total interest and related expenses of
$227.2 million and $447.9 million, which was reduced by $13 thousand and $28 thousand, respectively, related to
income generated by our cash flow hedges.