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Derivatives and Hedging Activities (Notes) | 12 Months Ended
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Dec. 31, 2022
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 purposes of our cash flow hedging programs are to manage the foreign currency exchange rate risk on forecasted expenses denominated in currencies other than the functional currency of the operating unit, and to manage floating interest rate risk associated with future interest payments on variable-rate term loans issued in January 2022. 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 and forward-starting interest rate swaps are designated and qualify as cash flow hedges. Our derivative instruments are recorded at fair value on the consolidated balance sheets and are classified based on the instrument's maturity date. We record changes in the fair value of the effective portion of the gain or loss on the derivative instrument as a component of other comprehensive (loss) 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. Foreign Currency Exchange Rate Risk Forward Exchange Forward Contracts We enter into foreign exchange forward contracts to hedge a portion of our forecasted foreign currency-denominated revenues and expenses to minimize the effect of foreign exchange rate movements on the related cash flows. These contracts are agreements to buy or sell a quantity of a currency at a predetermined future date and at a predetermined exchange rate. Our foreign exchange forward contracts hedge exposures principally denominated in Mexican Pesos ("MXN"), Euros, Czech Koruna ("CZK"), Japanese Yen ("JPY"), U.S. Dollar ("USD"), Chinese Renminbi ("CNH"), Canadian Dollar ("CAD") and Australian Dollar ("AUD") and have varying maturities with an average term of approximately twelve months. The total notional amount of these outstanding derivative contracts as of December 31, 2022 was $206.0 million, which included the notional equivalent of $61.3 million in MXN, $31.7 million in Euros, $13.9 million in CZK, $15.3 million in JPY, $11.5 million in CNH, $43.2 million in USD, $11.6 million in CAD, $11.9 million in AUD and $5.6 million in other foreign currencies, with terms currently through February 2024. Certain contracts were acquired as part of the Smiths Medical acquisition. We did not have such derivative contracts as of December 31, 2021. Cross-currency Par Forward Contracts We entered into cross-currency par forward contracts to hedge a portion of our Mexico forecasted expenses denominated in MXN. These contracts are agreements to exchange cash flows from one currency to another at specified intervals over the contract term with all exchanges occurring at the same predetermined rate. In November 2018, we hedged a portion of our Mexico forecasted expenses denominated in Pesos ("MXN") by entering into a one-year cross-currency par forward contract. The term of the one-year hedge was November 1, 2019 to November 3, 2020. The derivative instrument matured in equal monthly amounts at a fixed forward rate of 22.11 MXN/USD. In March 2020, we entered into a one-year cross-currency par forward contract. The total notional amount of this outstanding derivative as of December 31, 2020 was approximately 436.8 million MXN. The term of this one-year contract was November 3, 2020 to December 1, 2021. The derivative instrument matured in equal monthly amounts at a fixed forward rate of 24.26 MXN/USD. In November 2021, we entered into a one-year cross-currency par forward contract. The total notional amount of this outstanding derivative as of December 31, 2021 was approximately 413.1 million MXN. The term of this one-year contract is December 1, 2021 to December 1, 2022. The derivative instrument matured in equal monthly amounts at a fixed forward rate of 21.60 MXN/USD. Floating Interest Rate Risk In November 2021, in anticipation of entering into the new senior secured credit facilities in January 2022, which included a variable-rate term loan A and a variable-rate term loan B (see Note 11: Long-term Debt), we entered into two forward-starting interest rate swaps. In February 2022, certain terms under the agreements were amended to reflect the transition from LIBOR to the Secured Overnight Financing Rate ("SOFR"), an alternative reference rate. Under the interest rate swap agreements we exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. The term loan A swap, as amended, has an initial notional amount of $300.0 million, reducing to $150.0 million evenly on a quarterly basis through its final maturity on March 30, 2027. We will pay a fixed rate of 1.32% and will receive the greater of 3-month USD SOFR or (0.15)%. The term loan B swap, as amended, has an initial notional amount of $750.0 million, reducing to $46.9 million evenly on a quarterly basis excluding its final maturity on March 30, 2026. We will pay a fixed rate of 1.17% and will receive the greater of 3-month USD SOFR or 0.35%. These forward-starting swaps will effectively convert the relevant portion of the floating-rate term loans to fixed rates. The following table presents the fair values of our derivative instruments included within the consolidated balance sheets (in thousands):
|  | Derivatives Designated as Cash Flow Hedging Instruments |  |
Consolidated Balance Sheet Location |  | Foreign Exchange Forward Contracts |  | Interest Rate Swaps |  | Gross Derivatives
|  | (In thousands)
As of December 31, 2022 |  |  |  |  |  |
Prepaid expenses and other current assets |  | $ | 4,860 |  |  | $ | 28,431 |  |  | $ | 33,291 |
Other assets |  | 94 |  |  | 26,753 |  |  | 26,847 |
Total assets |  | $ | 4,954 |  |  | $ | 55,184 |  |  | $ | 60,138 |
Accrued liabilities |  | $ | 1,847 |  |  | $ | — |  |  | $ | 1,847 |
Other long-term liabilities |  | 167 |  |  | — |  |  | 167 |
Total liabilities |  | $ | 2,014 |  |  | $ | — |  |  | $ | 2,014 |
|  | Derivatives Designated as Cash Flow Hedging Instruments |  |
As of December 31, 2021 |  | Foreign Exchange Forward Contracts |  | Forward-Starting Interest Rate Swaps |  | Gross Derivatives
Prepaid expenses and other current assets |  | $ | 1,061 |  |  | $ | — |  |  | $ | 1,061 |
Other assets |  | — |  |  | — |  |  | — |
Total assets |  | $ | 1,061 |  |  | $ | — |  |  | $ | 1,061 |
Accrued liabilities |  | $ | — |  |  | $ | — |  |  | $ | — |
Other long-term liabilities |  | — |  |  | 1,480 |  |  | 1,480 |
Total liabilities |  | $ | — |  |  | $ | 1,480 |  |  | $ | 1,480 |
The following table presents the effects of our derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations (in thousands):
| Gain Reclassified From Accumulated Other Comprehensive (Loss) Income into Net (Loss) Income
| Location of Gain in the Consolidated Statements of Operations |  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Derivatives designated as cash flow hedging instruments: |  |  |  |  |  |  |
Foreign exchange forward contracts | Total revenues |  | $ | 3,829 |  |  | $ | — |  |  | $ | — |
Foreign exchange forward contracts | Cost of goods sold |  | 7,751 |  |  | 3,444 |  |  | 790 |
Foreign exchange forward contracts | Interest expense(1) |  | 717 |  |  | — |  |  | — |
Interest rate swaps | Interest expense |  | $ | 6,122 |  |  | $ | — |  |  | $ | — |
Total derivatives designated as cash flow hedging instruments |  |  | $ | 18,419 |  |  | $ | 3,444 |  |  | $ | 790 |
_______________________________ (1) Represents location of gain reclassified from accumulated other comprehensive (loss) income to net (loss) income as a result of a forecasted transaction being no longer probable of occurring. We recognized the following gains (losses) on our derivative instruments designated as cash flow hedges in other comprehensive (loss) income before reclassifications to net (loss) income (in thousands):
|  | Amount of Gain (Loss) Recognized in Other Comprehensive (Loss) Income
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Derivatives designated as cash flow hedging instruments: |  |  |  |  |  |
Foreign exchange forward contracts |  | $ | 9,588 |  |  | $ | 950 |  |  | $ | 1,980 |
Interest rate swaps |  | 62,786 |  |  | (1,480) |  |  | — |
Total derivatives designated as cash flow hedging instruments |  | $ | 72,374 |  |  | $ | (530) |  |  | $ | 1,980 |
As of December 31, 2022, we expect an estimated $3.0 million in deferred gains on the outstanding foreign exchange forward contract and an estimated $29.3 million in deferred gains on the forward-starting interest rate swaps will be reclassified from accumulated other comprehensive loss to net income during the next 12 months concurrent with the underlying hedged transactions also being reported in net income.

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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 https://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 https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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