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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company principally uses derivative financial instruments to reduce the impact of foreign currency fluctuations and interest rate variability on the Company's results of operations. The principal derivative financial instruments the Company enters into are foreign exchange forward contracts and interest rate swaps. The Company does not enter into derivative financial instrument contracts for trading or speculative purposes.
Foreign Exchange Derivative Instruments
Foreign exchange forward contracts are foreign exchange derivative instruments primarily used to reduce foreign currency risk related to transactions denominated in a currency other than functional currency. These instruments are designated as cash flow hedges. The periods of the foreign exchange forward contracts correspond to the periods of the hedged forecasted transactions, which do not exceed 24 months subsequent to the latest balance sheet date. The primary foreign exchange forward contracts pertain to the U.S. dollar, the Japanese yen, the British pound sterling, the Canadian dollar, the Korean won, the Australian dollar and the euro. The gross U.S. dollar equivalent notional amount outstanding of all foreign exchange forward contracts designated under hedge accounting as of December 31, 2025 and 2024 was $230.7 million and $192.2 million, respectively.
The Company may also enter into foreign exchange forward contracts, which either do not qualify as hedging instruments or have not been designated as such, to reduce foreign currency transaction risk related to certain intercompany assets and liabilities denominated in a currency other than functional currency. These undesignated instruments are recorded at fair value as a derivative asset or liability with the corresponding change in fair value recognized in selling, general and administrative expenses. There were no outstanding foreign exchange forward contracts not designated under hedge accounting as of December 31, 2025 and 2024. Selling, general and administrative expenses during the year ended December 31, 2023 included a gain of $0.1 million, related to undesignated foreign exchange forward derivative instruments.
Interest Rate Derivative Instruments
From time to time, the Company enters into interest rate swap contracts to reduce interest rate risk related to floating rate debt. Under such contracts, the Company pays fixed rate interest and receives variable rate interest, in effect converting a portion of its floating rate debt to fixed rate debt. Interest rate swap contracts are accounted for as cash flow hedges. As of December 31, 2025, there were no outstanding interest rate swap contracts. As of December 31, 2024, the notional value of the Company's outstanding interest rate swap contracts was $100.0 million.
Impact on Financial Statements
The fair value of hedge instruments recognized on the consolidated balance sheets was as follows:
(in thousands)December 31,
Balance Sheet LocationHedge Instrument Type20252024
Prepaid and other assetsForeign exchange forward$2,950 $8,135 
Interest rate swap— 4 
Accrued expenses and other liabilitiesForeign exchange forward1,746 251 
Interest rate swap— 1 
The hedge instrument (losses) gains recognized in accumulated other comprehensive loss, net of tax was as follows:
 Year ended December 31,
(in thousands)202520242023
Type of hedge
Foreign exchange forward$(3,835)$12,118 $4,880 
Interest rate swap — 575 991 
 Total$(3,835)$12,693 $5,871 
Based on the current valuation, during the next 12 months the Company expects to reclassify a net gain of $1.2 million related to foreign exchange derivative instruments from accumulated other comprehensive loss, net of tax into cost of goods sold. For further information related to amounts recognized in accumulated other comprehensive loss, net of tax, see Note 18.
    The hedge instrument gains recognized on the consolidated statements of operations was as follows:
 Year ended December 31,
(in thousands)202520242023
Location of gains in consolidated statements of operations
Foreign exchange forward:
Cost of goods sold$2,464 $11,414 $6,982 
Selling, general and administrative (1)
(2,403)2,318 665 
Total $61 $13,732 $7,647 
Interest rate swap:
Interest expense, net$3 $872 $690 
Total$3 $872 $690 
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(1)    Relates to net (losses) gains on foreign exchange forward contracts derived from previously designated cash flow hedges.
Credit Risk
The Company enters into derivative contracts with major financial institutions with investment grade credit ratings and is exposed to credit losses in the event of non-performance by these financial institutions. This credit risk is generally limited to the unrealized gains in the derivative contracts. However, the Company monitors the credit quality of these financial institutions, as well as its own credit quality, and considers the risk of counterparty default to be minimal.