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SEC Filings

10-Q
EQUINIX INC filed this Form 10-Q on 05/03/2019
Entire Document
 
EQUINIX, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)

Fair Value of Derivative Instruments
The following table presents the fair value of derivative instruments recognized in the Company's condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 (in thousands):
 
March 31, 2019
 
December 31, 2018
 
Assets (1)
 
Liabilities (2)
 
Assets (1)
 
Liabilities (2)
Designated as hedging instruments:
 
 
 
 
 
 
 
Cash flow hedges
 
 
 
 
 
 
 
Foreign currency forward contracts
$
46,383

 
$
373

 
$
38,606

 
$
865

Net investment hedges
 
 
 
 
 
 
 
Cross-currency interest rate swaps
12,925

 

 

 

Total designated as hedging
59,308

 
373

 
38,606

 
865

 
 
 
 
 
 
 
 
Not designated as hedging instruments:
 
 
 
 
 
 
 
Embedded derivatives
4,998

 
1,890

 
4,656

 
2,426

Economic hedges of embedded derivatives

 
557

 
525

 
180

Foreign currency forward contracts
13,047

 
244

 
29,287

 
6,269

Total not designated as hedging
18,045

 
2,691

 
34,468

 
8,875

Total Derivatives
$
77,353

 
$
3,064

 
$
73,074

 
$
9,740


(1) 
As presented in the Company's condensed consolidated balance sheets within other current assets and other assets.
(2) 
As presented in the Company's condensed consolidated balance sheets within other current liabilities and other liabilities.
Offsetting Derivative Assets and Liabilities
The Company presents its derivative instruments and the accrued interest related to cross-currency interest rate swaps at gross fair values in the condensed consolidated balance sheets. The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation on the condensed consolidated balance sheets, the Company does not offset fair value amounts recognized for derivative instruments or the accrued interest related to cross-currency interest rate swaps under master netting arrangements. The following table presents information related to these offsetting arrangements as of March 31, 2019 and December 31, 2018 (in thousands):
 
Gross Amounts Offset in
Consolidated Balance Sheet
 
 
 
 
 
Gross Amounts
 
Gross Amounts Offset in the Balance Sheet
 
Net Amounts
 
Gross Amounts not Offset in the Balance Sheet
 
Net
March 31, 2019
 
 
 
 
 
 
 
 
 
Derivative assets
$
86,391

 
$

 
$
86,391

 
$
(6,001
)
 
$
80,390

Derivative liabilities
7,891

 

 
7,891

 
(6,001
)
 
1,890

 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Derivative assets
$
73,074

 
$

 
$
73,074

 
$
(6,517
)
 
$
66,557

Derivative liabilities
9,740

 

 
9,740

 
(6,517
)
 
3,223



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