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DERIVATIVES | 3 Months Ended
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Mar. 31, 2025
DERIVATIVES |
DERIVATIVES | NOTE 12 — 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 in the three months ended March 31, 2025 and 2024. 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 March 31, 2025. 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 $88,276 and $96,444 at March 31, 2025 and December 31, 2024, respectively. The Company had interest rate forward starting swap agreements that were qualified and designated as cash flow hedges that were terminated during 2024. Upon termination of the contracts in 2024, the company had a gain of $25,852 recorded in AOCI that will be amortized to Interest expense, net over the life of the associated debt. 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 contracts was $354,894 and $319,450 at March 31, 2025 and December 31, 2024, respectively. Derivatives Not Designated as Hedging Instruments The Company has certain foreign exchange forward contracts that are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $380,684 and $421,754 at March 31, 2025 and December 31, 2024, respectively. Fair values of derivative instruments in the Company’s Condensed Consolidated Balance Sheets consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | March 31, 2025 | ​ | December 31, 2024
​ | 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 | $ | 1,131 | ​ | $ | 822 | ​ | $ | — | ​ | $ | — | ​ | $ | 1,663 | ​ | $ | 2,972 | ​ | $ | — | ​ | $ | —
Net investment contracts | ​ | — | ​ | ​ | 8,479 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 10,276 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Not designated as hedging instruments: |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Foreign exchange contracts |  | 893 | ​ | ​ | 1,330 | ​ | ​ | — | ​ | ​ | — | ​ |  | 1,560 | ​ |  | 4,251 | ​ |  | — | ​ |  | —
Total derivatives | $ | 2,024 | ​ | $ | 10,631 | ​ | $ | — | ​ | $ | — | ​ | $ | 13,499 | ​ | $ | 7,223 | ​ | $ | — | ​ | $ | —
​ The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Income consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Three Months Ended March 31,
Derivatives by hedge designation |  | Classification of gain (loss) |  | 2025 |  | 2024
Not designated as hedges: | ​ |  | ​ | ​ |  |  | ​ |
Foreign exchange contracts | ​ | Selling, general & administrative expenses | ​ | $ | 8,333 | ​ | $ | (1,615)
​ The effects of designated hedges on AOCI consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ | ​ | ​ | ​ |
Total gain (loss) recognized in AOCI, net of tax |  | March 31, 2025 |  | December 31, 2024 |
Foreign exchange contracts | ​ | $ | 394 | ​ | $ | (812) | ​
Forward starting swap agreements | ​ | ​ | 17,690 | ​ | ​ | 18,067 | ​
Net investment contracts | ​ | ​ | 13,583 | ​ |  | 20,403 | ​
​ The Company expects a gain of $394 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. ​ The effects of designated hedges on the Company’s Consolidated Statements of Income consisted of the following: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Three Months Ended March 31,
​ | ​ | (Loss) gain recognized in the | ​ | ​ | ​ | ​ | ​ | ​
Derivative type |  | Consolidated Statements of Income: |  | 2025 |  | 2024
Foreign exchange contracts |  | Sales | ​ | $ | (713) | ​ | $ | 839
​ |  | Cost of goods sold | ​ |  | 361 | ​ |  | 232
Commodity contracts | ​ | Cost of goods sold | ​ | ​ | — | ​ | ​ | 2
Forward starting swap agreements | ​ | Interest expense, net | ​ | ​ | 689 | ​ | ​ | —
​

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