Derivatives and Hedging

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Designated as Hedges

As of December 31, 2020, we had total gross notional amounts of $749 million of foreign currency contracts outstanding (primarily related to the Canadian Dollar, Chinese Yuan, British Pound, Euro, Indian Rupee and Philippine Peso) that were designated as hedges. The foreign currency contracts are of varying duration, none of which extend beyond December 2024. There were no commodity contracts outstanding that were designated as hedges as of December 31, 2020.

The fair values of derivatives designated as hedging instruments follows:


	Asset Derivatives					Liability Derivatives
(in thousands)	Balance Sheet Location	December 31, 2020		December 31, 2019		Balance Sheet Location	December 31, 2020		December 31, 2019
Foreign currency contracts	Other current assets	$	20,004	$	2,871	Other accrued liabilities	$	4	$	1,585
Commodity contracts	Other current assets	—		10		Other accrued liabilities	—		—
Foreign currency contracts	Other assets	2,184		3,757		Noncurrent liabilities	25		4,747
Total		$	22,188	$	6,638		$	29	$	6,332

The after-tax amount of gain (loss) recognized in OCI and reclassified from AOCI into earnings associated with derivative instruments designated as cash flow hedges follows:


	After-Tax Amount of Gain (Loss) Recognized in OCI							After-Tax Amount of Gain (Loss) Reclassified from AOCI into Earnings
Cash Flow Hedges (in thousands)	2020		2019		2018		Location of Gain (Loss)	2020		2019		2018
Foreign currency contracts	$	19,608	$	1,043	$	(5,207)	Cost of revenue	$	2,382	$	(1,041)	$	(4,432)
Commodity contracts	(107)		460		—		Cost of revenue	(100)		453		—
Interest rate contracts	—		—		—		Interest expense	(1,678)		(1,049)		(1,049)
Total	$	19,501	$	1,503	$	(5,207)		$	604	$	(1,637)	$	(5,481)

Derivatives Not Designated as Hedges

As of December 31, 2020, we also had total gross notional amounts of $228 million of foreign currency contracts and $28 million of commodity contracts outstanding that were not designated as hedges. The foreign currency contracts primarily

related to contract obligations denominated in nonfunctional currencies. The gains and losses associated with derivatives not designated as hedges were not material for any period presented.