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Derivative Financial Instruments | 9 Months Ended
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Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments Designated Nonderivative Financial Instruments As of September 30, 2021, the Company has designated €750 million debt and accrued interest as a hedge of our net investment in the international subsidiaries resulting from the Agro Acquisition. The remeasurement of these instruments is recorded in “Change in unrealized net gain (loss) on foreign currency” on the accompanying Condensed Consolidated Statements of Comprehensive Income. Derivative Financial Instruments There have been no significant changes to our policy or strategy from what was disclosed in our 2020 Form 10-K. Additionally, during the next twelve months, the Company estimates that an additional $2.5 million will be reclassified as an increase to “Loss on debt extinguishment, modification, and termination of derivative instruments”. During the next twelve months, the Company estimates that an additional $0.1 million will be reclassified as an increase to gain/loss on foreign exchange as of September 30, 2021. The Company determines the fair value of these derivative instruments using a present value calculation with significant observable inputs classified as Level 2 of the fair value hierarchy. Derivative asset balances are recorded on the Condensed Consolidated Balance Sheets within “Other assets” and derivative liability balances are recorded on the Condensed Consolidated Balance Sheets within “Accounts payable and accrued expenses”. The following table illustrates the disclosure in tabular format of fair value amounts of derivative instruments at September 30, 2021 and December 31, 2020 (in thousands):
|  | Derivative Assets |  |  | Derivative Liabilities |  |
|  | September 30, 2021 |  |  | December 31, 2020 |  |  | September 30, 2021 |  |  | December 31, 2020 |  |  |  |
Designated derivatives |  |  |  |  |  |  |  |
Foreign exchange contracts |  | $ | 605 |  |  |  | $ | — |  |  |  | $ | 100 |  |  |  | $ | 9,611 |  |  |  |  |
Total derivatives | $ | 605 |  |  |  | $ | — |  |  |  | $ | 100 |  |  |  | $ | 9,611 |  |  |  |  |
The following table presents the effect of the Company’s derivative financial instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020, including the impacts to Accumulated Other Comprehensive Income (AOCI) (in thousands):
| Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative |  | Location of Gain or (Loss) Reclassified from AOCI into Income |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
| Three Months Ended September 30, |  |  | Three Months Ended September 30,
| 2021 |  | 2020 |  |  | 2021 |  | 2020
Interest rate contracts | $ | — |  |  | $ | 1,099 |  |  | Interest expense |  | $ | — |  |  | $ | (1,243) |
Interest rate contracts | — |  |  | — |  |  | Loss on debt extinguishment, modifications and termination of derivative instruments(1) |  | (627) |  |  | — |
Foreign exchange contracts | 5,094 |  |  | (7,196) |  |  | Other, net |  | 5,477 |  |  | (3,807) |
Foreign exchange contracts | — |  |  | — |  |  | Interest expense |  | (3) |  |  | (43) |
Total designated cash flow hedges | $ | 5,094 |  |  | $ | (6,097) |  |  |  |  | $ | 4,847 |  |  | $ | (5,093) |
(1) In conjunction with the termination of the interest rate swaps in 2020, the Company recorded amounts in other comprehensive income that will be reclassified as an adjustment to earnings over the term of the original hedges and respective borrowings. As of September 30, 2021, the Company recorded an increase to “Loss on debt extinguishment, modifications and termination of derivative instruments” related to this transaction.
| Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative |  | Location of Gain or (Loss) Reclassified from AOCI into Income |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
| Nine Months Ended September 30, |  |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  |  | 2021 |  | 2020
Interest rate contracts | $ | — |  |  | $ | (16,895) |  |  | Interest expense |  | $ | — |  |  | $ | (2,181) |
Interest rate contracts | — |  |  | — |  |  | Loss on debt extinguishment, modifications and termination of derivative instruments(1) |  | (2,055) |  |  | — |
Foreign exchange contracts | 10,116 |  |  | 1,168 |  |  | Other, net |  | 9,436 |  |  | 77 |
Foreign exchange contracts | — |  |  | — |  |  | Interest expense |  | (142) |  |  | 164 |
Foreign exchange forwards | — |  |  | 5,250 |  |  |  |  |  |  |
Total designated cash flow hedges | $ | 10,116 |  |  | $ | (10,477) |  |  |  |  | $ | 7,239 |  |  | $ | (1,940) |
(1) In conjunction with the termination of the interest rate swaps in 2020, the Company recorded amounts in other comprehensive income that will be reclassified as an adjustment to earnings over the term of the original hedges and respective borrowings. As of September 30, 2021, the Company recorded an increase to “Loss on debt extinguishment, modifications and termination of derivative instruments” related to this transaction. Interest expense recorded in the accompanying Condensed Consolidated Statements of Operations was $25.3 million and $23.1 million during the three months ended September 30, 2021 and 2020, respectively, and $77.8 million and $70.1 million during the nine months ended September 30, 2021 and 2020, respectively. The Company recorded total Other, net in its Condensed Consolidated Statements of Operations of $0.5 million and $1.2 million for the three months ended September 30, 2021 and 2020, respectively, and $0.1 million and $0.2 million for the nine months ended September 30, 2021 and 2020, respectively. The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2021 and December 31, 2020. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the accompanying Condensed Consolidated Balance Sheets (in thousands):
September 30, 2021
Offsetting of Derivative Assets |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet |  |
| Gross Amounts of Recognized Assets |  | Gross Amounts Offset in the Condensed Consolidated Balance Sheet |  | Net Amounts of Assets presented in the Condensed Consolidated Balance Sheet |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives | $ | 605 |  |  | $ | — |  |  | $ | 605 |  |  | $ | (100) |  |  | $ | — |  |  | $ | 505 |
Offsetting of Derivative Liabilities |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet |  |
| Gross Amounts of Recognized Liabilities |  | Gross Amounts Offset in the Condensed Consolidated Balance Sheet |  | Net Amounts of Liabilities presented in the Condensed Consolidated Balance Sheet |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives | $ | (100) |  |  | $ | — |  |  | $ | (100) |  |  | $ | 100 |  |  | $ | — |  |  | $ | — |
December 31, 2020
Offsetting of Derivative Assets |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet |  |
| Gross Amounts of Recognized Assets |  | Gross Amounts Offset in the Condensed Consolidated Balance Sheet |  | Net Amounts of Assets presented in the Condensed Consolidated Balance Sheet |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Offsetting of Derivative Liabilities |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet |  |
| Gross Amounts of Recognized Liabilities |  | Gross Amounts Offset in the Condensed Consolidated Balance Sheet |  | Net Amounts of Liabilities presented in the Condensed Consolidated Balance Sheet |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives | $ | 9,611 |  |  | $ | — |  |  | $ | 9,611 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,611 |
As of September 30, 2021, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0.2 million. As of September 30, 2021, the Company has not posted any collateral related to these agreements. The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. In addition, termination events such as the Company’s credit agreement not being secured, or not being guaranteed pursuant to the Company, could cause the Company to be in default on its derivative obligations. The Company has not defaulted on any of its derivative obligations. If the Company had breached any of these provisions at September 30, 2021, it could have been required to settle its obligations under the agreements at their termination value of $0.2 million. Refer to Note 15 for additional details regarding the impact of the Company’s derivatives on AOCI for the three and nine months ended September 30, 2021 and 2020, respectively.

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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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