Derivatives

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

We use foreign currency forward contracts to mitigate foreign currency risk of certain monetary assets and liabilities denominated in foreign currencies. We do not enter into such contracts for trading or speculative purposes. These derivative instruments are not designated as hedging instruments.

We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we enter into foreign currency forward contracts, generally settled monthly, that are designated as hedges of net investments.

As of March 31, 2025 and December 31, 2024, our foreign exchange forward contracts consisted of the following:


	March 31, 2025					December 31, 2024
	Notional Value		Fair Value (Level 2)		Balance Sheet Location	Notional Value		Fair Value (Level 2)		Balance Sheet Location
	(In thousands)
Forward contracts not designated as hedging instruments
Japanese yen	$	243,348	$	648	Other current assets	$	254,783	$	10	Other current assets
Korean won	76,498		(220)		Accrued expenses	80,260		(472)		Accrued expenses
Philippine peso	10,624		(3)		Accrued expenses	8,431		(29)		Accrued expenses
Singapore dollar	22,953		(94)		Accrued expenses	8,454		(39)		Accrued expenses
Taiwan dollar	31,535		12		Other current assets	31,150		(70)		Accrued expenses
Total forward contracts not designated as hedging instruments	$	384,958	$	343		$	383,078	$	(600)


	March 31, 2025					December 31, 2024
	Notional Value		Fair Value (Level 2)		Balance Sheet Location	Notional Value		Fair Value (Level 2)		Balance Sheet Location
	(In thousands)
Forward contracts designated as net investment hedging instruments
Japanese yen	$	128,739	$	(367)	Accrued expenses	$	123,042	$	(83)	Accrued expenses
Total forward contracts designated as net investment hedging instruments	$	128,739	$	(367)		$	123,042	$	(83)

For the three months ended March 31, 2025, we incurred a net loss of $2.9 million due to the impact of derivatives not designated as hedging instruments, which includes the forward costs, and the related hedged items. For the three months ended March 31, 2024, the derivatives not designated as hedging instruments resulted in a net loss of $27.5 million, which were partially offset by the foreign currency gains associated with the underlying net liabilities.

For the three months ended March 31, 2025, a gain of $1.3 million was recognized in other (income) expense, net for the difference between the forward rate and the spot rate of the net investment hedge. For the three months ended March 31, 2025, a loss of $4.7 million was recognized in other comprehensive income (loss) for the changes in fair value of the net investment hedges. There was no activity related to net investment hedges for the three months ended March 31, 2024.