XML 59 R45.htm IDEA: XBRL DOCUMENT v3.24.1.u1
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 3 Months Ended
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 IntoTermNotional AmountRelated Debt FacilityFixed Rate of SwapBank Margin on Debt (b)Total Effective Interest Rate (c)
August 20159 years$170,000 2015 Term Loan2.10 %1.70 %3.80 %
August 20159 years180,000 2015 Term Loan2.26 %1.70 %3.96 %
April 201610 years100,000 2016 Incremental Term Loan1.50 %1.75 %3.25 %
April 201610 years100,000 2016 Incremental Term Loan1.51 %1.75 %3.26 %
May 2021 7 years200,000 
2021 Incremental Term Loan
0.67 %1.65 %2.32 %
December 2022 5 years100,000 
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 IntoTermNotional AmountFixed Rate of SwapRelated Debt FacilityForward DateMaximum Period Ending for Forecasted Issuance Date
April 20204 years$100,000 0.78 %2015 Term LoanAugust 2024N/A
May 20204 years50,000 0.64 %2015 Term LoanAugust 2024N/A
May 20234 years50,000 3.29 %2015 Term LoanAugust 2024N/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 Location20242023
Derivatives designated as cash flow hedges:
Foreign currency exchange contractsOther comprehensive (loss) income($5,490)$3,813 
Other operating income (expense), net459 (2,429)
Foreign currency option contractsOther comprehensive (loss) income(1,638)(270)
Other operating income (expense), net8 — 
Interest rate productsOther comprehensive (loss) income15,041 (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, 2024December 31, 2023
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts$127,450 $122,700 
Foreign currency option contracts106,000 98,000 
Interest rate swaps850,000 850,000 
Forward-starting interest rate swaps200,000 200,000 
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 SheetFair Value Assets / (Liabilities) (a)
March 31, 2024December 31, 2023
Derivatives designated as cash flow hedges:
Foreign currency exchange contractsOther current assets$366 $1,175 
Other assets 274 2,405 
Other current liabilities(1,803)(664)
Other non-current liabilities(953)— 
Foreign currency option contractsOther current assets122 342 
Other assets1,294 2,158 
Other current liabilities(289)(139)
Other non-current liabilities(1,186)(789)
Interest rate swapsOther current assets3,600 5,742 
Other assets42,986 37,983 
Other non-current liabilities— (546)
Forward-starting interest rate swapsOther assets16,959 12,790 
Other non-current liabilities— (8)
Total derivative contracts:
Other current assets$4,088 $7,259 
Other assets61,513 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.