XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Fair Value of Financial Instruments | 3 Months Ended
--- | ---
Mar. 31, 2024
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: In assessing the fair value of financial instruments, we use methods and assumptions that are based on market conditions and other risk factors existing at the time of assessment. Fair value information for our financial instruments is as follows: Long-Term Debt—the fair values of our notes are estimated using Level 1 inputs and account for the difference between the recorded amount and fair value of our long-term debt. The carrying value of our remaining long-term debt reported in the accompanying consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings.
| March 31, 2024 |  | December 31, 2023
| Recorded Amount |  | Fair Value |  | Recorded Amount |  | Fair Value
| (In thousands)
Long-term debt | $ | 3,543,472 |  |  | $ | 3,350,906 |  |  | $ | 4,186,532 |  |  | $ | 4,021,693 |
Foreign Currency Forward Contracts—during the fourth quarter of 2019, we entered into a foreign currency forward contract to hedge the cash flow exposure of non-functional currency purchases during the construction of the Kemerton plant in Australia. This derivative financial instrument is used to manage risk and is not used for trading or other speculative purposes. This foreign currency forward contract has been designated as a hedging instrument under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. We had outstanding designated foreign currency forward contracts with notional values totaling the equivalent of $907.4 million and $994.5 million at March 31, 2024 and December 31, 2023, respectively. We also enter into foreign currency forward contracts in connection with our risk management strategies that have not been designated as hedging instruments under ASC 815, Derivatives and Hedging, in an attempt to minimize the financial impact of changes in foreign currency exchange rates. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. The fair values of our non-designated foreign currency forward contracts are estimated based on current settlement values. At March 31, 2024 and December 31, 2023, we had outstanding non-designated foreign currency forward contracts with notional values totaling $5.5 billion and $7.1 billion, respectively, hedging our exposure to various currencies including the Chinese Renminbi, Euro, Australian Dollar and Chilean Peso. The following table summarizes the fair value of our foreign currency forward contracts included in the consolidated balance sheets as of March 31, 2024 and December 31, 2023 (in thousands):
| March 31, 2024 |  | December 31, 2023
| Assets |  | Liabilities |  | Assets |  | Liabilities
Designated as hedging instruments |  |  |  |  |  |  |
Other current assets | $ | — |  |  | $ | — |  |  | $ | 3,489 |  |  | $ | — |
Other assets | — |  |  | — |  |  | 11,704 |  |  | — |
Accrued expenses | — |  |  | 3,954 |  |  | — |  |  | 446 |
Other noncurrent liabilities | — |  |  | 6,291 |  |  | — |  |  | — |
Total designated as hedging instruments | — |  |  | 10,245 |  |  | 15,193 |  |  | 446 |
Not designated as hedging instruments |  |  |  |  |  |  |
Other current assets | 2,239 |  |  | — |  |  | 2,636 |  |  | — |
Accrued expenses | — |  |  | 6,935 |  |  | — |  |  | 5,306 |
Total not designated as hedging instruments | 2,239 |  |  | 6,935 |  |  | 2,636 |  |  | 5,306 |
Total | $ | 2,239 |  |  | $ | 17,180 |  |  | $ | 17,829 |  |  | $ | 5,752 |
The following table summarizes the net (losses) gains recognized for our foreign currency forward contracts during the three-month periods ended March 31, 2024 and 2023 (in thousands):
|  |  | Three Months Ended March 31,
|  |  |  |  | 2024 |  | 2023
Designated as hedging instruments |  |  |  |  |  |  |
(Loss) income recognized in Other comprehensive (loss) income |  |  |  |  | $ | (21,342) |  |  | $ | 1,101 |
Loss recognized in Other income, net |  |  |  |  | $ | (2,682) |  |  | $ | — |
Not designated as hedging instruments |  |  |  |  |  |  |
Income recognized in Other income, net(a) |  |  |  |  | $ | 14,822 |  |  | $ | 35,233 |
(a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other income, net. In addition, for the three-month periods ended March 31, 2024 and 2023, we recorded net cash receipts of $14.5 million and $41.5 million, respectively, in Other, net, in our condensed consolidated statements of cash flows. Unrealized gains and losses related to the cash flow hedges will be reclassified to earnings over the life of the related assets when settled and the related assets are placed into service. The counterparties to our foreign currency forward contracts are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties.

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

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration