Company: DBRG
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001679688-25-000017
Chunk: 165

Company: DigitalBridge Group, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 165
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 period, the Company reassesses the effectiveness of its net investment hedges and as appropriate, dedesignates the portion of the derivative notional that is in excess of the beginning balance of its net investments as undesignated hedges. Release of amounts in AOCI related to net investment hedges occurs upon losing a controlling financial interest in an investment. Upon sale, complete or substantially complete liquidation of an investment in a foreign subsidiary,  the gain or loss on the related net investment hedge is reclassified from AOCI to earnings.

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The Company did not engage in derivative transactions in 2024 and had no outstanding derivatives at December 31, 2023. Realized and unrealized gains and losses on derivative instruments in prior years were recorded in other gain (loss) on the consolidated statement of operations as follows: Year Ended December 31,(In thousands)20232022Foreign currency contracts:Designated contractsRealized gain (loss) transferred from AOCI to earnings(1)$— $17,334 Non-designated contractsRealized and unrealized gain (loss) in earnings(2)4,053 17,092 Interest rate contracts:Non-designated contractsRealized and unrealized gain (loss) in earnings— 11,533 __________(1)    Represents a net investment hedge of a foreign subsidiary, for which the warehoused foreign investment was transferred to a sponsored fund and deconsolidated in 2022.(2)    Represents foreign currency contract entered into on behalf of a sponsored fund, which had no net impact to the Company's earnings (Note 16).LeasesThe Company's leasing arrangements are composed of operating leases for its corporate offices. As lessee, the Company determines if an arrangement contains a lease and determines the classification of a leasing arrangement at its inception. A lease is classified as a finance lease, which represents a financed purchase of the leased asset, if the lease meets any of the following criteria: (a) asset ownership is transferred to lessee by end of lease term; (b) option to purchase asset is reasonably certain to be exercised by lessee; (c) the lease term is for a major part of the remaining economic life of the asset; (d) the present value of lease payments equals or exceeds substantially the fair value of the asset; or (e) the asset is of such a specialized nature that it is expected to have no alternative use at end of lease term. A lease is classified as an operating