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Derivatives and Hedging Activities | 12 Months Ended
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Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Note 1 for additional information on our purpose for entering into derivatives and our overall risk management strategies. We enter into foreign exchange forward contracts to hedge our cash flow risks associated with transactions denominated in currencies other than the local currency of the operation engaging in the transaction. Foreign exchange contracts had notional values of $425.2 million and $388.1 million at December 31, 2021 and 2020, respectively. At December 31, 2021, the length of foreign exchange contracts currently in place ranged from 3 days to 21 months. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties. The fair values of foreign exchange contracts are summarized below:
| Year Ended December 31,
| 2021 |  | 2020
| (Amounts in thousands)
Current derivative assets | $ | 740 |  |  | $ | 2,857 |
Noncurrent derivative assets | 2 |  |  | 249 |
Current derivative liabilities | 2,924 |  |  | 682 |
Noncurrent derivative liabilities | 82 |  |  | — |
Current and noncurrent derivative assets are reported in our consolidated balance sheets in prepaid expenses and other and other assets, net, respectively. Current and noncurrent derivative liabilities are reported in our consolidated balance sheets in accrued liabilities and retirement obligations and other liabilities, respectively. The impact of net changes in the fair values of foreign exchange contracts are summarized below:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
| (Amounts in thousands)
Gains (losses) recognized in income | $ | 3,295 |  |  | $ | (10,294) |  |  | $ | (6,495) |
Gains and losses recognized in our consolidated statements of income for foreign exchange contracts are classified as other income (expense), net. As a means of managing the volatility of foreign currency exposure with the Euro/U.S. dollar exchange rate, we entered into cross-currency swaps agreements ("Swaps") as a hedge of our Euro investment in certain of our international subsidiaries. Accordingly, on April 14, 2021 and March 9, 2021, we entered into Swaps, with termination dates of October 1, 2030 and an early termination date of March 11, 2025, respectively. Also, d uring the third quarter of 2020 we entered into a cross currency swap agreement with an early termination date of September 22, 2025. The swap agreements are designated as net investment hedges and as of December 31, 2021 the combined notional value of these swaps wa s €423.2 million. The swaps are classified as Level II under the fair value hierarchy. The fair values of our cross-currency swaps are summarized below:
| Year Ended December 31,
| 2021 |  | 2020
| (Amounts in thousands)
Other assets, net | $ | 23,129 |  |  | $ | — |
Retirement obligations and other liabilities | — |  |  | 18,091 |
We exclude the interest accruals on the swaps from the assessment of hedge effectiveness and recognize the interest accruals in earnings within interest expense. For each reporting period, the change in the fair value of the swap attributable to changes in the spot rate and differences between the change in the fair value of the excluded components and the amounts recognized in earnings under the swap accrual process are reported in accumulated other comprehensive loss ("AOCL") on our consolidated balance sheets. For the period ended December 31, 2021, an interest accrual of $(6.3) million was recogniz ed within interest expense in our consolidated statements of income. The cumulative net investment hedge (gain) loss, net of deferred taxes, under cross-currency swaps recorded in AOCL on our consolidated balance sheets are summarized below:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
| (Amounts in thousands)
(Gain) loss-included component (1) | $ | (15,578) |  |  | $ | 6,067 |  |  | $ | — |
(Gain) loss-excluded component (2) | (2,111) |  |  | 7,769 |  |  | — |
(Gain) loss recognized in AOCL | $ | (17,689) |  |  | $ | 13,836 |  |  | $ | — |
_____________________________________________ (1) Change in the fair value of the swaps attributable to changes in spot rates. (2) Change in the fair value of the swaps due to changes other than those attributable to spot rates. In March 2015, we designated €255.7 million of our 1.25% EUR Senior Notes due 2022 ("2022 Euro Senior Notes") discussed in Note 13 as a net investment hedge of our Euro investment in certain of our international subsidiaries. On September 22, 2020, we increased the designated hedged value on the 2022 Euro Senior Notes to €336.3 million, which reflected the remaining balance of the 2022 Euro Senior Notes. For each reporting period, the change in the carrying value due to the remeasurement of the effective portion is reported in AOCL on our consolidated balance sheets and the remaining change in the carrying value of the ineffective portion, if any, is recognized in other income (expense), net in our consolidated statements of income. As a result of the redemption of our 2022 Euro Senior Notes discussed in Note 13, in the first quarter of 2021 we dedesignated the hedged value of our net investment hedge. Prior to the dedesignation, the cumulative impact recorded in AOCL on our consolidated balance sheets from the change in carrying value due to the remeasurement of the effective portion of the net investment hedge are summarized below:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
| (Amounts in thousands)
Loss recorded in AOCL | $ | (29,554) |  |  | $ | (34,973) |  |  | $ | (12,084) |
Prior to the dedesignation of the net investment hedge, we used the spot method to measure the effectiveness of both net investment hedges and evaluate the effectiveness on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness for the years ended December 31, 2020 and 2019.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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