Derivative Financial Instruments and Hedging Activities (Tables)
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6 Months Ended |
Jun. 30, 2024 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Notional Amounts of Outstanding Foreign Currency Cash Flow Hedges |
The net notional amounts of the Company’s outstanding derivative instruments were as follows: | | | | | | | | | | | | | As of | | June 30,
2024 | | December 31,
2023 | | (in thousands) | Derivatives designated as hedging instruments: | | | | Foreign exchange contracts | | | | Cash flow hedges | $ | 9,549,472 | | | $ | 8,783,273 | | | Derivatives not designated as hedging instruments:
| | | | | Foreign exchange contracts | 808,357 | | | — | | Total | $ | 10,357,829 | | | $ | 8,783,273 | |
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| Schedule of Fair Value of Derivative Contracts |
The fair value of the Company’s outstanding derivative instruments was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2024 | | Derivative Assets | | Derivative Liabilities | | | Other current assets | | Other non-current assets | | Accrued expenses and other liabilities | | Other non-current liabilities | | | (in thousands) | | Derivatives designated as hedging instruments: | | | | | | | | | Foreign exchange contracts | $ | 197,119 | | | $ | 41,085 | | | $ | 26,586 | | | $ | 3,176 | | | Derivatives not designated as hedging instruments: | | | | | | | | | Foreign exchange contracts | 2,625 | | | — | | | 2,371 | | | — | | | Total | $ | 199,744 | | | $ | 41,085 | | | $ | 28,957 | | | $ | 3,176 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2023 | | Derivative Assets | | Derivative Liabilities | | | Other current assets | | Other non-current assets | | Accrued expenses and other liabilities | | Other non-current liabilities | | | (in thousands) | | Derivatives designated as hedging instruments: | | | | | | | | | Foreign exchange contracts | $ | 26,416 | | | $ | 4,518 | | | $ | 140,089 | | | $ | 46,575 | | | Derivatives not designated as hedging instruments: | | | | | | | | | Foreign exchange contracts | — | | | — | | | — | | | — | | | Total | $ | 26,416 | | | $ | 4,518 | | | $ | 140,089 | | | $ | 46,575 | | | | | | | | | | | | | | | | | |
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| Schedule of Offsetting Derivative Assets and Liabilities |
The potential offsetting effect to the Company’s derivative assets and liabilities under its master netting agreements and collateral security agreements were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2024 | | | | | | | | Gross Amount Not Offset in the Consolidated Balance Sheets | | | | | Gross Amount Recognized in the Consolidated Balance Sheets | | Gross Amount Offset in the Consolidated Balance Sheets | | Net Amount Presented in the Consolidated Balance Sheets | | Financial Instruments | | Collateral Received and Posted | | Net Amount | | | (in thousands) | | Derivative assets | $ | 240,829 | | | $ | — | | | $ | 240,829 | | | $ | (32,133) | | | $ | — | | | $ | 208,696 | | | Derivative liabilities | 32,133 | | | — | | | 32,133 | | | (32,133) | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2023 | | | | | | | | Gross Amount Not Offset in the Consolidated Balance Sheets | | | | | Gross Amount Recognized in the Consolidated Balance Sheets | | Gross Amount Offset in the Consolidated Balance Sheets | | Net Amount Presented in the Consolidated Balance Sheets | | Financial Instruments | | Collateral Received and Posted | | Net Amount | | | (in thousands) | | Derivative assets | $ | 30,934 | | | $ | — | | | $ | 30,934 | | | $ | (27,246) | | | $ | — | | | $ | 3,688 | | | Derivative liabilities | 186,664 | | | — | | | 186,664 | | | (27,246) | | | — | | | 159,418 | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Schedule of Gains (Losses) on Cash Flow Hedges Recognized in AOCI |
The pre-tax gains (losses) on the Company’s cash flow hedges and net investment hedges recognized in AOCI were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30,
2024 | | June 30,
2023 | | June 30,
2024 | | June 30,
2023 | | (in thousands) | | Cash flow hedges: | | | | | | | | | Foreign exchange contracts (1) | | | | | | | | | Amount included in the assessment of effectiveness | $ | 160,544 | | | $ | — | | | $ | 389,688 | | | $ | — | | | Net investment hedges: | | | | | | | | | Foreign currency-denominated debt | (3,400) | | | — | | | (3,400) | | | — | | | Total | $ | 157,144 | | | $ | — | | | $ | 386,288 | | | $ | — | |
(1) No amounts were excluded from the assessment of effectiveness.
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| Schedule of Gains (Losses) on Derivative Instruments Recognized in the Consolidated Statement of Operations |
The gains on derivative instruments recognized in the Consolidated Statement of Operations were as follows: | | | | | | | | | | | | | | | | | | | Three Months Ended | | June 30, 2024 | | Revenues | | Cost of Revenues | | Interest and other income (expense) | | (in thousands) | | Total amounts presented in the Consolidated Statements of Operations | $ | 9,559,310 | | | $ | 5,174,143 | | | $ | 79,005 | | | | | | | | | Gains on derivatives in cash flow hedging relationship | | | | | | | Foreign exchange contracts | | | | | | | Amount of gains reclassified from AOCI | 33,301 | | | 73 | | | — | | | Gains on derivatives not designated as hedging instruments | | | | | | | Foreign exchange contracts | — | | | — | | | 9,797 | |
| | | | | | | | | | | | | | | | | | | Six Months Ended | | June 30, 2024 | | Revenues | | Cost of Revenues | | Interest and other income (expense) | | (in thousands) | | Total amounts presented in the Consolidated Statements of Operations | $ | 18,929,750 | | | $ | 10,151,216 | | | $ | 234,364 | | | | | | | | | Gains on derivatives in cash flow hedging relationship | | | | | | | Foreign exchange contracts | | | | | | | Amount of gains reclassified from AOCI | 22,060 | | | 267 | | | — | | | Gains on derivatives not designated as hedging instruments | | | | | | | Foreign exchange contracts | — | | | — | | | 14,063 | |
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