XML 29 R17.htm IDEA: XBRL DOCUMENT
v3.20.2

DERIVATIVES | 6 Months Ended
--- | ---
Jun. 30, 2020
DERIVATIVES |
9. | DERIVATIVES
We enter into foreign currency forward and option contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have on certain monetary liabilities that are denominated in nonfunctional currencies. Cash Flow Hedging Instruments We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the settlement of these instruments occurs. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at June 30, 2020, all of our open foreign currency forward contracts had maturities of one year or less. The total notional value of our foreign currency exchange contracts designated as cash flow hedges at June 30, 2020 was $33,200, and such contracts have varying terms expiring through January 2021. The impact from foreign exchange derivative instruments designated as cash flow hedges was as follows:
|  | Quarter Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
(Loss) gain recorded in accumulated other comprehensive loss |  | $ | (1,606 | ) |  | $ | (709 | ) |  | $ | 1,867 |  |  | $ | (1,444 | )
Gain reclassified from accumulated other comprehensive loss into earnings |  | $ | (406 | ) |  | $ | (176 | ) |  | $ | (249 | ) |  | $ | (551 | )
At June 30, 2020, we expected an estimated $585 pre-tax gain to be reclassified into earnings to reflect the fixed prices obtained from foreign exchange hedging within the next 12 months. Derivatives Not Designated as Hedging Instruments We have also entered into foreign currency forward and option contracts that are either not designated as hedges or did not qualify for hedge accounting. These derivative instruments were effective economic hedges for all of the periods presented. The fair value gains and losses on these contracts are recognized in earnings as a component of selling, general and administrative expenses. The total notional value of our foreign currency exchange contracts not designated as hedging instruments at June 30, 2020 was $5,900, and such contracts subsequently expired during July 2020 . We recognized losses of $317 and $190 from foreign currency forward and option contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the quarters ended June 30, 2020 and 2019, respectively. We recognized gains (losses) of $511 and $(303) from foreign currency forward and option contracts not designated as hedging instruments in our condensed consolidated unaudited statements of income for the six months ended June 30, 2020 and 2019, respectively. The following table summarizes the fair value of derivative instruments, which consist solely of foreign exchange contracts, included in other current assets and accrued expenses and other current liabilities in our condensed consolidated unaudited balance sheets. See Note 10 .
|  | Asset Derivatives |  |  | Liability Derivatives |
|  | June 30, 2020 |  |  | December 31, 2019 |  |  | June 30, 2020 |  |  | December 31, 2019 |
Derivatives designated as hedging instruments |  | $ | 400 |  |  | $ | — |  |  | $ | 445 |  |  | $ | 944 |
Derivatives not designated as hedging instruments |  |  | — |  |  |  | — |  |  |  | 16 |  |  |  | 63 |
Total derivative instruments |  | $ | 400 |  |  | $ | — |  |  | $ | 461 |  |  | $ | 1,007 |

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration