XML 35 R15.htm IDEA: XBRL DOCUMENT
v3.24.0.1

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended
--- | ---
Dec. 31, 2023
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company accounts for its derivative instruments and hedging activities under ASC 815, “Derivatives and Hedging.” The following table presents the fair values of the Company’s derivative instruments: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Fair value |  | ​ |
Derivatives designated as | ​ | December 31, | ​ | December 31, | ​ |  |
hedging instruments |  | 2023 |  | 2022 |  | Balance Sheet location |
Assets: |  | ​ |  |  | ​ |  |  |  | ​
Commodity contracts | ​ | $ | 4,480 | ​ | $ | — |  | Accounts receivable, net | ​
Commodity contracts | ​ | $ | 316 | ​ | $ | — |  | Other assets | ​
Liabilities: | ​ |  |  | ​ |  |  |  |  | ​
Commodity contracts | ​ | $ | (386) | ​ | $ | — |  | Accrued liabilities | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Fair value |  | ​
Derivatives not designated as | ​ | December 31, | ​ | December 31, | ​ |
hedging instruments |  | 2023 |  | 2022 |  | Balance Sheet location
Assets: |  | ​ |  |  | ​ |  |  |
Foreign currency exchange contracts | ​ | $ | 138 | ​ | $ | 965 |  | Accounts receivable, net
Liabilities: | ​ |  |  | ​ |  |  |  |
Foreign currency exchange contracts | ​ | $ | (1,221) | ​ | $ | (4,698) |  | Accrued liabilities
​ Cash Flow Hedging Strategy ​ The Company uses cash flow hedges to minimize the variability in cash flows of forecasted transactions caused by fluctuations in commodity prices. The changes in the fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) and are reclassified into the line item in our consolidated statement of income in which the hedged items are recorded in the same period that the hedged items affect earnings. The changes in the fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is currently less than two years. ​ The Company has entered into commodity hedge contracts to mitigate the price risk associated with a portion of its forecasted aluminum purchases. These derivative instruments were designated as part of the Company’s commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of aluminum. The total notional values of derivatives that were designated and qualified for this program were $98.3 million as of December 31, 2023. Transactions under the commodity cash flow hedging program were executed beginning in May 2023. The following table presents the impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year ended December 31, 2023
Derivatives designated as |  | Gain (loss) |  | Location of gain (loss) |  | Gain (loss) reclassified
hedging instruments | ​ | recognized in AOCI | ​ | recognized in income | ​ | from AOCI into income
Commodity contracts | ​ | $ | 4,410 | ​ | Cost of sales | ​ | $ | (317)
​ As of December 31, 2023, the Company estimates that it will reclassify into earnings net gains (losses) of $4.1 million from the amount recorded in AOCI as the anticipated cash flows occur during the next 12 months. ​ Economic (Non-Designated) Hedging Strategy The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the years ended December 31, 2023, 2022 and 2021, 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 December 31, 2023 have terms of approximately 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. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income (expense), net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. The total notional values of derivatives related to our foreign currency economic hedges were $282.7 million and $299.8 million as of December 31, 2023 and 2022, respectively. The net gains (losses) on derivatives not designated as hedging instruments in the consolidated statements of income were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Gain (loss) recognized
​ | ​ | ​ | ​ | in income on derivatives
​ | ​ | ​ | ​ | Year ended
Derivatives not designated as | ​ | Location of gain (loss) | ​ | December 31, | ​ | December 31, | ​ | December 31,
hedging instruments |  | recognized in income on derivatives |  | 2023 |  | 2022 |  | 2021
Foreign currency exchange contracts |  | Interest and other income (expense), net |  | $ | (12,364) |  | $ | (6,893) |  | $ | (5,445)
​ Certain of the Company’s counterparty agreements contain provisions that require the Company to post collateral on derivative instruments in a net liability position. As of December 31, 2023, $3.8 million was held as collateral.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration