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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2023

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the three-months ended March 31, 2023 and the year-ended December 31, 2022, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of March 31, 2023 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions under ASC 815, “Derivatives and Hedging.” Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income (expense), net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item.

The notional amount and fair value of all outstanding foreign currency derivative instruments in the Company’s condensed consolidated balance sheets consist of the following at:

​

​	​	​	​	​	​	​	​	​
March 31, 2023
Derivatives not designated as	​	​	​	​	​	​	​	​
hedging instruments under	​	Notional		​	Fair		​	​
ASC 815		Amount			Value			Balance Sheet Location
Assets:	​	​	​	​	​	​	​	​
Foreign currency exchange contracts:	​	​	​	​	​	​	​	​
Receive CAD/pay USD	​	$	44,220	​	$	168		Accounts receivable, net
Receive USD/pay CLP	​	​	56,610	​	​	159		Accounts receivable, net
Receive USD/pay COP	​	​	15,493	​		37		Accounts receivable, net
Receive RSD/pay USD	​	​	4,560	​	​	18	​	Accounts receivable, net
​	​	​	​	​	​	​	​	​
Liabilities:	​	​	​	​	​	​	​	​
Foreign currency exchange contracts:	​	​	​	​	​	​	​	​
Receive USD/pay EUR	​	$	48,377	​	$	(105)	​	Accrued liabilities
Receive USD/pay ZAR	​	​	4,117	​	​	(97)	​	Accrued liabilities
Receive USD/pay NZD	​	​	6,906	​	​	(32)		Accrued liabilities
Receive USD/pay CNY	​	​	18,642	​		(31)		Accrued liabilities
Receive USD/pay GBP	​	​	14,292	​	​	(24)	​	Accrued liabilities
Receive SGD/pay USD	​	​	24,977	​	​	(10)	​	Accrued liabilities
Receive AUD/pay USD	​	​	2,884	​		(6)		Accrued liabilities

​

​

​	​	​	​	​	​	​	​	​
December 31, 2022
Derivatives not designated as	​	​	​	​	​	​	​	​
hedging instruments under	​	Notional		​	Fair		​	​
ASC 815		Amount			Value			Balance Sheet Location
Assets:	​	​	​	​	​	​	​	​
Foreign currency exchange contracts:	​	​	​	​	​	​	​	​
Receive SGD/pay USD	​	$	15,883	​	$	398		Accounts receivable, net
Receive CAD/pay USD	​	​	34,467	​	​	106	​	Accounts receivable, net
Receive USD/pay MXN	​		12,430	​		88		Accounts receivable, net
Receive USD/pay GBP	​	​	43,551	​	​	118	​	Accounts receivable, net
Receive RSD/pay USD	​	​	3,513	​	​	112	​	Accounts receivable, net
Receive GBP/pay USD	​	​	34,716	​	​	100	​	Accounts receivable, net
Receive GBP/pay USD	​	​	4,321	​	​	31	​	Accounts receivable, net
Receive USD/pay COP	​	​	11,570	​	​	12	​	Accounts receivable, net
​	​	​	​	​	​	​	​	​
Liabilities:	​	​	​	​	​	​	​	​
Foreign currency exchange contracts:	​	​	​	​	​	​	​	​
Receive USD/pay CLP	​	$	43,071	​	$	(2,549)		Accrued liabilities
Receive USD/pay EUR	​	​	40,592	​		(1,377)	​	Accrued liabilities
Receive USD/pay CNY	​	​	12,460	​		(362)		Accrued liabilities
Receive USD/pay EUR	​	​	34,714	​	​	(295)	​	Accrued liabilities
Receive USD/pay NZD	​	​	4,093	​		(91)		Accrued liabilities
Receive USD/pay AUD	​	​	1,271	​		(23)		Accrued liabilities
Receive USD/pay ZAR	​	​	3,124	​		(1)		Accrued liabilities

​

The net gains (losses) on derivative instruments in the condensed consolidated statements of income were as follows:

​

​	​	​	​	​	​	​	​	​
​	​	​	​	Amount of gain (loss)
​	​	​	​	recognized in income on
​	​	​	​	derivatives
​	​	​	​	Three-months ended
Derivatives not designated as	​	Location of gain (loss)	​	​	​	​	​	​
hedging instruments under	​	recognized in income on	​	March 31,		​	March 31,
ASC 815		derivatives		2023			2022
Foreign currency exchange contracts		Interest and other income (expense), net	​	$	(7,852)	​	$	(4,019)

​

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- References

No definition available.

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- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-URI https://asc.fasb.org/topic&trid=2229140

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 5
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008

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