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Derivative Instruments | 3 Months Ended
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Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments The Company enters into derivative instrument agreements, including forward foreign currency exchange contracts, interest rate swaps, and cross currency swaps to manage risk in connection with changes in foreign currency and interest rates. The Company hedges committed exposures and does not engage in speculative transactions. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit. As of September 30, 2023, the aggregate notional amount of the Company's outstanding interest rate contracts, cross currency swap contracts, EUR forward contract and CNY forward contracts were $566.3 million, $436.4 million, $321.7 million and $4.6 million (CNY31.7 million), respectively. Changes in fair value of any forward contracts that are determined to be ineffective are immediately reclassified from OCI into earnings. There were no amounts recognized due to ineffectiveness during the three and nine months ended September 30, 2023 and September 30, 2022. The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended September 30, were as follows:
| 2023 |  | 2022 |
(in thousands) | Cost of sales | Interest income (expense), net and other finance costs | Other & foreign exchange loss, net |  | Cost of sales | Interest income (expense), net and other finance costs | Other & foreign exchange loss, net |
Total amounts of income and expense line items presented in the Condensed Consolidated Statement of Earnings in which the effects of fair value or cash flow hedges are recorded | $ | 888,835 |  | 18 |  | $ | (1,471) |  |  | 899,828 |  | (6,568) |  | (3,814) |  |
The effects of fair value and cash flow hedging |  |  |  |  |  |  |  |
| Gain or (loss) on cash flow hedging relationships |  |  |  |  |  |  |  |
|  | Interest contracts: |  |  |  |  |  |  |  |
|  |  | Amount of gain or (loss) reclassified from OCI to earnings | — |  | 11,409 |  | — |  |  | — |  | (3,315) |  | — |  |
|  | Cross currency swap contract |  |  |  |  |  |  |  |
|  |  | Amount of gain or (loss) reclassified from OCI to earnings | — |  | 4,088 |  | 6,508 |  |  | — |  | (4,020) |  | 57,560 |  |
|  | Forward contract |  |  |  |  |  |  |  |
|  |  | Amount of gain reclassified from OCI to earnings | 60 |  | — |  | — |  |  | 163 | — |  | — |  |
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended September 30, 2023 and 2022 were as follows:
Cash Flow Hedging Relationships | Gain (Loss) Recognized in OCI |  | Location of Gain (Loss) Reclassified from OCI into Earnings | Gain (Loss) Reclassified from OCI into Earnings
(in thousands) | 2023 | 2022 |  |  | 2023 | 2022
Interest rate contracts | $ | 4,959 |  | $ | 18,696 |  |  | Interest expense | $ | 4,302 |  | $ | (337) |
Cross currency contracts | 12,156 |  | 23,977 |  |  | Interest expense | 1,483 |  | (5,979) |
Forward contracts | (122) |  | — |  |  | FX gain (loss) | 11,753 |  | 28,437 |
|  |  |  | Cost of goods sold | (20) |  | — |
Total | $ | 16,993 |  | $ | 42,673 |  |  |  | $ | 17,518 |  | $ | 22,121 |
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the nine months ended September 30, 2023 and 2022 were as follows:
Cash Flow Hedging Relationships | Gain (Loss) Recognized in OCI |  | Location of Gain (Loss) Reclassified from OCI into Earnings | Gain (Loss) Reclassified from OCI into Earnings
(in thousands) | 2023 | 2022 |  |  | 2023 | 2022
Interest rate contracts | $ | 11,505 |  | $ | 25,571 |  |  | Interest expense | $ | 11,409 |  | $ | (3,315) |
Cross currency contracts | 4,137 |  | 46,692 |  |  | Interest expense | 4,088 |  | (4,020) |
Forward contracts | (535) |  | — |  |  | FX gain (loss) | 6,508 |  | 57,560 |
|  |  |  | Cost of goods sold | 60 |  | 163 |
Total | $ | 15,107 |  | $ | 72,263 |  |  |  | $ | 22,065 |  | $ | 50,388 |
For the three months ending September 30, 2023 and September 30, 2022 gains on the net investment hedge of $3.2 million and $16.9 million were included in OCI, respectively. For the three months ending September 30, 2023 and September 30, 2022, excluded gains of $1.3 million and $1.3 million were reclassified from OCI to interest expense, respectively. For the nine months ending September 30, 2023 losses on the net investment hedge, and September 30, 2022 gains on the net investment hedge of $1.1 million and $28.2 million were included in OCI, respectively. For the nine months ending September 30, 2023 and September 30, 2022, excluded gains of $3.8 million and $2.4 million were reclassified from OCI to interest expense, respectively. As of September 30, 2023, the aggregate fair values of the Company’s derivative instruments on the Condensed Consolidated Balance Sheet were comprised of an asset of $42.8 million, of which $19.5 million is included in other current assets, and the balance of $23.3 million as other non-current assets, and of a non-current liability of $9.5 million included as deferred income tax and other long-term liabilities.

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- 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
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