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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended
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Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Interest Rate Derivatives | The following table contains information on the outstanding interest rate swaps as of March 31, 2024:
Outstanding Interest Rate Swaps (a)
Date Entered Into | Term | Notional Amount | Related Debt Facility | Fixed Rate of Swap | Bank Margin on Debt (b) | Total Effective Interest Rate (c)
August 2015 | 9 years | $170,000 |  | 2015 Term Loan | 2.10 | % | 1.70 | % | 3.80 | %
August 2015 | 9 years | 180,000 |  | 2015 Term Loan | 2.26 | % | 1.70 | % | 3.96 | %
April 2016 | 10 years | 100,000 |  | 2016 Incremental Term Loan | 1.50 | % | 1.75 | % | 3.25 | %
April 2016 | 10 years | 100,000 |  | 2016 Incremental Term Loan | 1.51 | % | 1.75 | % | 3.26 | %
May 2021 | 7 years | 200,000 |  | 2021 Incremental Term Loan | 0.67 | % | 1.65 | % | 2.32 | %
December 2022 | 5 years | 100,000 |  | 2022 Incremental Term Loan | 3.72 | % | 1.70 | % | 5.42 | %
(a)All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting. (b)Includes the SOFR Credit Spread Adjustment component of 0.1%. (c)Rate is before estimated patronage payments. The following table contains information on the outstanding forward-starting interest rate swaps as of March 31, 2024:
Outstanding Forward-Starting Interest Rate Swaps (a)
Date Entered Into | Term | Notional Amount | Fixed Rate of Swap | Related Debt Facility | Forward Date | Maximum Period Ending for Forecasted Issuance Date
April 2020 | 4 years | $100,000 |  | 0.78 | % | 2015 Term Loan | August 2024 | N/A
May 2020 | 4 years | 50,000 |  | 0.64 | % | 2015 Term Loan | August 2024 | N/A
May 2023 | 4 years | 50,000 |  | 3.29 | % | 2015 Term Loan | August 2024 | N/A
(a)All forward-starting interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table demonstrates the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023:
|  |  | Three Months Ended March 31,
| Income Statement Location |  | 2024 |  | 2023
Derivatives designated as cash flow hedges: |  |  |  |  |
Foreign currency exchange contracts | Other comprehensive (loss) income |  | ($5,490) |  |  | $3,813 |
| Other operating income (expense), net |  | 459 |  |  | (2,429) |
Foreign currency option contracts | Other comprehensive (loss) income |  | (1,638) |  |  | (270) |
| Other operating income (expense), net |  | 8 |  |  | — |
Interest rate products | Other comprehensive (loss) income |  | 15,041 |  |  | (9,660) |
| Interest expense, net |  | (7,278) |  |  | (3,463) |
The following table contains details of the expected reclassified amounts into earnings:
| Amount expected to be reclassified into earnings in next 12 months
Derivatives designated as cash flow hedges: |
Foreign currency exchange contracts | ($1,034) |
Foreign currency option contracts | (121) |
Interest rate products (a) | 23,625 |
Total estimated net gain on derivatives contracts | $22,470 |
(a) These reclassified amounts are expected to fully offset variable interest rate payments made to debt holders, resulting in no net impact on our earnings or cash flows.
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:
| Notional Amount |
| March 31, 2024 |  | December 31, 2023 |
Derivatives designated as cash flow hedges: |  |  |  |
Foreign currency exchange contracts | $127,450 |  |  | $122,700 |  |
Foreign currency option contracts | 106,000 |  |  | 98,000 |  |
Interest rate swaps | 850,000 |  |  | 850,000 |  |
Forward-starting interest rate swaps | 200,000 |  |  | 200,000 |  |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at March 31, 2024 and December 31, 2023. Changes in balances of derivative financial instruments are recorded as operating activities in the Consolidated Statements of Cash Flows:
| Location on Balance Sheet |  | Fair Value Assets / (Liabilities) (a)
|  |  | March 31, 2024 |  | December 31, 2023
Derivatives designated as cash flow hedges: |  |  |  |
Foreign currency exchange contracts | Other current assets |  | $366 |  |  | $1,175 |
| Other assets |  | 274 |  |  | 2,405 |
| Other current liabilities |  | (1,803) |  |  | (664) |
| Other non-current liabilities |  | (953) |  |  | — |
Foreign currency option contracts | Other current assets |  | 122 |  |  | 342 |
| Other assets |  | 1,294 |  |  | 2,158 |
| Other current liabilities |  | (289) |  |  | (139) |
| Other non-current liabilities |  | (1,186) |  |  | (789) |
Interest rate swaps | Other current assets |  | 3,600 |  |  | 5,742 |
| Other assets |  | 42,986 |  |  | 37,983 |
| Other non-current liabilities |  | — |  |  | (546) |
Forward-starting interest rate swaps | Other assets |  | 16,959 |  |  | 12,790 |
| Other non-current liabilities |  | — |  |  | (8) |
Total derivative contracts: |  |  |  |  |
Other current assets |  |  | $4,088 |  |  | $7,259 |
Other assets |  |  | 61,513 |  |  | 55,336 |
Total derivative assets |  |  | $65,601 |  |  | $62,595 |
Other current liabilities |  |  | (2,092) |  |  | (803) |
Other non-current liabilities |  |  | (2,139) |  |  | (1,343) |
Total derivative liabilities |  |  | ($4,231) |  |  | ($2,146) |
(a) See Note 8 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy.

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