XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Derivative Instruments | 3 Months Ended
--- | ---
Jun. 30, 2024
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 June 30, 2024, the aggregate notional amount of the Company's outstanding interest rate contracts, cross currency swap contracts, and EUR forward contract were $399.4 million, $418.7 million and $321.7 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 six months ended June 30, 2024 and June 30, 2023. The effects of fair value and cash flow hedge accounting on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30, were as follows:
| 2024 |  | 2023 |
(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 | $ | 604,456 |  | $ | 2,443 |  | $ | 381 |  |  | $ | 591,669 |  | $ | (1,274) |  | $ | (42) |  |
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 | — |  | 6,236 |  | — |  |  | — |  | 7,107 |  | — |  |
|  | Cross currency swap contract |  |  |  |  |  |  |  |
|  |  | Amount of gain or (loss) reclassified from OCI to earnings | — |  | 2,535 |  | 14,484 |  |  | — |  | 2,605 |  | (5,244) |  |
|  | Forward contract |  |  |  |  |  |  |  |
|  |  | Amount of gain reclassified from OCI to earnings | (188) |  | — |  | — |  |  | 80 |  | — |  | — |  |
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the three months ended June 30, 2024 and 2023 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) | 2024 | 2023 |  |  | 2024 | 2023
Interest rate contracts | $ | 2,367 |  | $ | 10,589 |  |  | Interest expense | $ | 3,089 |  | $ | 3,911 |
Cross currency contracts | 5,358 |  | (5,739) |  |  | Interest expense | 1,295 |  | 1,266 |
Forward contracts | — |  | (413) |  |  | FX gain (loss) | 4,344 |  | (3,429) |
|  |  |  | Cost of goods sold | — |  | 80 |
Total | $ | 7,725 |  | $ | 4,437 |  |  |  | $ | 8,728 |  | $ | 1,828 |
The effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Comprehensive Income for the six months ended June 30, 2024 and 2023 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) | 2024 | 2023 |  |  | 2024 | 2023
Interest rate contracts | $ | 9,173 |  | $ | 6,546 |  |  | Interest expense | $ | 6,235 |  | $ | 7,107 |
Cross currency contracts | 16,333 |  | (8,019) |  |  | Interest expense | 2,535 |  | 2,605 |
Forward contracts | — |  | (448) |  |  | FX gain (loss) | 14,484 |  | (5,244) |
|  |  |  | Cost of goods sold | (188) |  | 80 |
Total | $ | 25,506 |  | $ | (1,921) |  |  |  | $ | 23,066 |  | $ | 4,548 |
For the three months ending June 30, 2024 and June 30, 2023 gains on the net investment hedge of $5.2 million and $4.1 million were included in OCI, respectively. For the three months ending June 30, 2024 and June 30, 2023, excluded gains of $1.3 million and $1.3 million were reclassified from OCI to interest expense, respectively. For the six months ending June 30, 2024 and June 30, 2023 gains on the net investment hedge of $9.9 million and $4.4 million were included in OCI, respectively. For the six months ending June 30, 2024 and June 30, 2023, excluded gains of $2.5 million were reclassified from OCI to interest expense for both periods. As of June 30, 2024, the aggregate fair values of the Company’s derivative instruments on the Condensed Consolidated Balance Sheet were comprised of an asset of $33.5 million, of which $16.0 million is included in other current assets, and the balance of $17.4 million as other non-current assets, and of a non-current liability of $15.9 million included as deferred income tax and other long-term liabilities.

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

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://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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration