XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Derivative Financial Instruments (Notes) | 9 Months Ended
--- | ---
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives and Hedging Activities Hedge Accounting and Hedging Program The purpose of our hedging program is to manage the foreign currency exchange rate risk on forecasted expenses denominated in currencies other than the functional currency of the operating unit. We do not issue derivatives for trading or speculative purposes. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. The par forward contract is designated and qualifies as a cash flow hedge. Our derivative instruments are recorded at fair value on the condensed consolidated balance sheets and are classified based on the instrument's maturity date. We record changes in the intrinsic value of the effective portion of the gain or loss on the derivative instrument as a component of Other Comprehensive Income and we reclassify that gain or loss into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. In March 2020, we entered into a one-year cross-currency par forward contract that extends our current hedge of a portion of our Mexico forecasted expenses denominated in Pesos ("MXN"). The total notional amount of this outstanding derivative as of September 30, 2020 was approximately 473.2 million MXN. The term of the one-year contract is November 3, 2020 to December 1, 2021. The derivative instrument matures in equal monthly amounts at a fixed forward rate of 24.26 MXN/USD. In November 2018, we entered into a one-year cross-currency par forward contract that hedges of a portion of our Mexico forecasted expenses denominated in MXN. The total notional amount of this outstanding derivative as of September 30, 2020 was approximately 66.3 million MXN. The term of the one-year hedge is November 1, 2019 to November 3, 2020. The derivative instrument matures in equal monthly amounts at a fixed forward rate of 22.109 MXN/USD. The following table presents the fair values of our derivative instruments included within the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (in thousands):
| Derivatives
| Condensed Consolidated Balance Sheet Location |  | September 30, 2020 |  | December 31, 2019
Derivatives designated as cash flow hedging instruments |  |  |  |  |
Foreign exchange forward contract: |  |  |  |  |
| Prepaid expenses and other current assets |  | $ | 1,090 |  |  | $ | 2,366 |
| Other assets |  | 216 |  |  | — |
| Accrued liabilities |  | (6) |  |  | — |
Total derivatives designated as cash flow hedging instruments |  |  | $ | 1,300 |  |  | $ | 2,366 |
The following table presents the amounts affecting the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019 (in thousands):
|  | Line Item in the Condensed Consolidated Statements of Operations |  | Three months ended September 30, |  | Nine months ended September 30,
|  |  | 2020 |  | 2019 |  | 2020 |  | 2019
Derivatives designated as cash flow hedging instruments |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  | Cost of goods sold |  | $ | (49) |  |  | $ | 229 |  |  | $ | 423 |  |  | $ | 573 |
We recognized the following gains (losses) on our foreign exchange contracts designated as a cash flow hedge (in thousands):
|  | Amount of Gain Recognized in Other Comprehensive Income on Derivatives |  | Amount of (Loss) Gain Reclassified From Accumulated Other Comprehensive Income into Income
|  | Three months ended September 30, |  |  |  | Three months ended September 30,
|  | 2020 |  | 2019 |  | Location of (Loss) Gain Reclassified From Accumulated Other Comprehensive Income into Income |  | 2020 |  | 2019
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contract |  | $ | 1,287 |  |  | $ | (264) |  |  | Cost of goods sold |  | $ | (49) |  |  | $ | 229 |
Total derivatives designated as cash flow hedging instruments |  | $ | 1,287 |  |  | $ | (264) |  |  |  |  | $ | (49) |  |  | $ | 229 |
|  | Amount of (Loss) Gain Recognized in Other Comprehensive Income on Derivatives |  | Amount of Gain Reclassified From Accumulated Other Comprehensive Income into Income
|  | Nine months ended September 30, |  |  |  | Nine months ended September 30,
|  | 2020 |  | 2019 |  | Location of Gain Reclassified From Accumulated Other Comprehensive Income into Income |  | 2020 |  | 2019
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |  |
Foreign exchange forward contract |  | $ | (642) |  |  | $ | 1,421 |  |  | Cost of goods sold |  | $ | 423 |  |  | $ | 573 |
Total derivatives designated as cash flow hedging instruments |  | $ | (642) |  |  | $ | 1,421 |  |  |  |  | $ | 423 |  |  | $ | 573 |
As of September 30, 2020, we expect approximately $1.1 million of the deferred gains on the outstanding derivatives in accumulated other comprehensive income to be reclassified to net income during the next twelve months concurrent with the underlying hedged transactions also being reported in net income.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration