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DERIVATIVES | 12 Months Ended
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Dec. 31, 2023
DERIVATIVES |
DERIVATIVES | NOTE 14 – DERIVATIVES The Company uses derivative instruments to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable. Hedge ineffectiveness was immaterial for each of the three years in the period ended December 31, 2023. The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with any individual counterparty was considered significant at December 31, 2023. The Company does not expect any counterparties to fail to meet their obligations. Cash flow hedges Certain foreign currency forward contracts are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $84,148 at December 31, 2023 and $66,296 at December 31, 2022. The Company has interest rate forward starting swap agreements that are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of the long-term contracts was $100,000 at December 31, 2023 and 2022 and have a termination date of August 2025. The Company has commodity contracts that are qualified and designated as cash flow hedges. The notional amount of these contracts was 200,000 pounds at December 31, 2023 and 875,000 pounds at December 31, 2022. In March 2023, the Company entered into interest rate swap agreements, which were qualified and designated as cash flow hedges, with an aggregate notional amount of $150,000. The interest rate swaps will effectively convert the interest rate on $150,000 of the Term Loan discussed in Note 9 from a variable rate based on one-month SOFR to a fixed rate. Net investment hedges The Company has foreign currency forward contracts that qualify and are designated as net investment hedges. The dollar equivalent gross notional amount of these short-term contracts was $119,607 at December 31, 2023. Derivatives not designated as hedging instruments The Company has certain foreign exchange forward contracts which are not designated as hedges. These derivatives are held as hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $492,600 at December 31, 2023 and $380,443 at December 31, 2022. Fair values of derivative instruments in the Company’s Consolidated Balance Sheets follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | December 31, 2023 | ​ | December 31, 2022
​ | Other | ​ | Other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Other | ​ | Other | ​ | ​ | ​ | ​ | ​ | ​
​ | Current | ​ | Current | ​ | Other | ​ | Other | ​ | Current | ​ | Current | ​ | Other | ​ | Other
Derivatives by hedge designation | Assets |  | Liabilities |  | Assets |  | Liabilities |  | Assets |  | Liabilities |  | Assets |  | Liabilities
Designated as hedging instruments: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Foreign exchange contracts | $ | 1,548 | ​ | $ | 687 | ​ | $ | — | ​ | $ | — | ​ | $ | 1,467 | ​ | $ | 738 | ​ | $ | — | ​ | $ | —
Interest rate swap agreements |  | — | ​ |  | — | ​ | ​ | 1,460 | ​ | ​ | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Forward starting swap agreements | ​ | — | ​ | ​ | — | ​ | ​ | 20,377 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 19,291 | ​ | ​ | —
Net investment contracts | ​ | — | ​ | ​ | 3,351 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,229 | ​ | ​ | — | ​ | ​ | —
Commodity contracts | ​ | 45 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 181 | ​ | ​ | 33 | ​ | ​ | — | ​ | ​ | —
Not designated as hedging instruments: |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Foreign exchange contracts |  | 4,063 | ​ | ​ | 623 | ​ | ​ | — | ​ | ​ | — | ​ |  | 2,348 | ​ |  | 790 | ​ |  | — | ​ |  | —
Total derivatives | $ | 5,656 | ​ | $ | 4,661 | ​ | $ | 21,837 | ​ | $ | — | ​ | $ | 3,996 | ​ | $ | 3,790 | ​ | $ | 19,291 | ​ | $ | —
​ The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Year Ended December 31,
Derivatives by hedge designation |  | Classification of gain |  | 2023 |  | 2022
Not designated as hedges: | ​ |  | ​ | ​ |  |  | ​ |
Foreign exchange contracts | ​ | Selling, general & administrative expenses | ​ | $ | 15,990 | ​ | $ | 4,805
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The effects of designated cash flow hedges on AOCI and the Company’s Consolidated Statements of Income consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ | ​ | ​ | ​ |
Total gain recognized in AOCI, net of tax |  | December 31, 2023 |  | December 31, 2022 |
Foreign exchange contracts | ​ | $ | 721 | ​ | $ | 627 | ​
Interest rate swap agreements | ​ | ​ | 1,085 | ​ | ​ | — | ​
Forward starting swap agreements | ​ | ​ | 14,696 | ​ | ​ | 13,191 | ​
Net investment contracts | ​ | ​ | 7,136 | ​ |  | 9,440 | ​
Commodity contracts | ​ |  | 34 | ​ |  | 91 | ​
​ The Company expects a gain of $755 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Year Ended December 31,
​ | ​ | Gain (loss) recognized in the | ​ | ​ | ​ | ​ | ​ | ​
Derivative type |  | Consolidated Statements of Income: |  | 2023 |  | 2022
Foreign exchange contracts |  | Net Sales | ​ | $ | 5,210 | ​ | $ | 962
​ |  | Cost of goods sold | ​ |  | 590 | ​ |  | 1,906
Commodity contracts | ​ | Cost of goods sold | ​ | ​ | 193 | ​ |  | (169)
​

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