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Financial Instruments and Risk Management | 12 Months Ended
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Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Instruments and Risk Management | Financial Instruments and Risk Management Net Investment Hedges During 2022, we terminated our fixed-to-fixed cross-currency interest rate swaps, accounted for as net investment hedges, and received net proceeds of $14.7 million. The proceeds are presented within cash provided by investing activities within the consolidated statement of cash flows. The $14.7 million gain is reported as a component of the CTA within AOCI on the consolidated balance sheet. Gains on net investment hedges are reclassified to earnings only when the related CTA are required to be reclassified, usually upon the sale or liquidation of the investment. The fair value of our net investment hedge was a net asset (liability) of zero and $1.0 million at December 31, 2022 and December 31, 2021, respectively. During the years ended December 31, 2022, 2021, and 2020, we recognized net interest income associated with this financial instrument of $1.1 million, $0.5 million, and $1.6 million, respectively. Cash Flow Hedges Foreign Currency Exchange Risk Management We manufacture and sell our products in several countries throughout the world and thus, we are exposed to changes in foreign currency exchange rates. To manage the volatility relating to these exposures, we net the exposures on a consolidated basis to take advantage of natural offsets. To manage the remaining exposure, from time to time, we utilize forward currency exchange contracts and zero cost collar option contracts to minimize the volatility to earnings and cash flows resulting from the effect of fluctuating foreign currency exchange rates on export sales denominated in foreign currencies (principally the euro). These contracts are generally designated as cash flow hedges. Designated cash flow hedges entered to minimize foreign currency exchange risk of forecasted revenue transactions are recorded to Net sales on the consolidated statement of operations when the forecasted transaction occurs. As of December 31, 2022, there were $16.9 million in open foreign currency derivative contracts. The fair value of the designated foreign currency hedge contracts was an asset (liability) of $(0.5) million and $0.5 million as of December 31, 2022 and 2021, respectively. Commodity Price Risk Management Certain energy sources used in our manufacturing operations are subject to price volatility caused by weather, supply and demand conditions, economic variables, and other unpredictable factors. This volatility is primarily related to the market pricing of natural gas. To mitigate expected fluctuations in market prices and the volatility to earnings and cash flow resulting from changes to the pricing of natural gas purchases, from time to time, we will enter into swap contracts and zero cost collar option contracts and designate these contracts as cash flow hedges. As of December 31, 2022, we had 1.4 million and 0.5 million mmBTUs (millions of British Thermal Units) in aggregate notional volume of outstanding natural gas commodity swap contracts and zero-cost collar option contracts, respectively, designated as cash flow hedges. As of December 31, 2022, open commodity contracts hedge forecasted transactions until December 2023. The fair value of the outstanding designated natural gas commodity hedge contracts was a net asset (liability) of $(1.6) million and $(0.6) million as of December 31, 2022 and 2021, respectively. Interest Rate Risk Management During the year, we had floating-to-fixed interest rate swaps with a combined notional amount of $166.2 million to manage the variability of cash flows in the interest rate payments associated with our existing LIBOR-based interest payments, effectively converting $166.2 million of our floating rate debt to a fixed rate. Per the terms of these instruments, we received floating rate interest payments based upon a three-month U.S. dollar LIBOR and in return, were obligated to pay interest at a fixed rate of 3.79 percent until July 2023. Due to the repayment of our term loan (refer to Note 10 for more information), during the second quarter of 2022, we terminated these interest rate swap instruments. Upon termination of the interest rate swap instruments, we reclassified a $1.7 million gain from AOCI into Interest income on the consolidated statement of operations. The fair value of outstanding interest rate instruments at December 31, 2022 and December 31, 2021 was an asset (liability) of zero and $(4.0) million, respectively. Effect of Cash Flow and Net Investment Hedge Accounting on AOCI
In millions | Amount of Gain (Loss) Recognized in AOCI |  | Amount of Gain (Loss) Reclassified from AOCI into Net income |  | Location of Gain (Loss) Reclassified from AOCI into Net income
| Years Ended December 31, |  |
| 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020 |  |
Cash flow hedging derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Currency exchange contracts | $ | 0.9 |  |  | $ | 0.8 |  |  | $ | (0.1) |  |  | $ | 2.0 |  |  | $ | 0.3 |  |  | $ | (0.1) |  |  | Net sales
Natural gas contracts | 4.4 |  |  | 1.6 |  |  | (0.5) |  |  | 6.5 |  |  | 0.7 |  |  | (1.1) |  |  | Cost of sales
Interest rate swap contracts | 5.8 |  |  | 4.8 |  |  | (5.0) |  |  | 1.7 |  |  | — |  |  | — |  |  | Interest income
Total | $ | 11.1 |  |  | $ | 7.2 |  |  | $ | (5.6) |  |  | $ | 10.2 |  |  | $ | 1.0 |  |  | $ | (1.2) |  |  |
| Amount of Gain (Loss) Recognized in AOCI |  | Amount of Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) |  | Location of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
| Years Ended December 31, |  |
| 2022 |  | 2021 |  | 2020 |  | 2022 |  | 2021 |  | 2020 |  |
Net investment hedging derivative |  |  |  |  |  |  |  |  |  |  |  |  |
Currency exchange contracts (1) | $ | 13.9 |  |  | $ | 9.6 |  |  | $ | (11.7) |  |  | $ | 1.1 |  |  | $ | 0.5 |  |  | $ | 1.6 |  |  | Interest income
Total | $ | 13.9 |  |  | $ | 9.6 |  |  | $ | (11.7) |  |  | $ | 1.1 |  |  | $ | 0.5 |  |  | $ | 1.6 |  |  |
__________ (1) Reclassifications from AOCI to Net Income were zero for all periods presented. Gains and losses would be reclassified from AOCI to Other (income) expense, net. Within the next twelve months, we expect to reclassify $1.7 million of losses from AOCI to earnings before taxes. Fair-Value Measurements The following information is presented for derivative assets and liabilities that are recorded on the consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that were recorded at fair value between Level 1 and Level 2 during the periods reported. There were no non-recurring fair value measurements related to derivative assets and liabilities on our consolidated balance sheet during the fiscal years ending December 31, 2022, 2021, or 2020, respectively.
| December 31, 2022
In millions | Level 1 (1) |  | Level 2 (2) |  | Level 3 (3) |  | Total
Liabilities: |  |  |  |  |  |  |
Natural gas contracts (6) | $ | — |  |  | $ | 1.6 |  |  | $ | — |  |  | $ | 1.6 |
Currency exchange contracts (6) | — |  |  | 0.5 |  |  | — |  |  | 0.5 |
Total liabilities | $ | — |  |  | $ | 2.1 |  |  | $ | — |  |  | $ | 2.1 |
| December 31, 2021
In millions | Level 1 (1) |  | Level 2 (2) |  | Level 3 (3) |  | Total
Assets: |  |  |  |  |  |  |
Currency exchange contracts (4) | $ | — |  |  | $ | 0.5 |  |  | $ | — |  |  | $ | 0.5 |
Net investment hedge (5) | — |  |  | 2.0 |  |  | — |  |  | 2.0 |
Total assets | $ | — |  |  | $ | 2.5 |  |  | $ | — |  |  | $ | 2.5 |
Liabilities: |  |  |  |  |  |  |
Natural gas contracts (6) | $ | — |  |  | $ | 0.6 |  |  | $ | — |  |  | $ | 0.6 |
Net investment hedge (7) | — |  |  | 1.0 |  |  | — |  |  | 1.0 |
Interest rate swap contracts (7) | — |  |  | 4.0 |  |  | — |  |  | 4.0 |
Total liabilities | $ | — |  |  | $ | 5.6 |  |  | $ | — |  |  | $ | 5.6 |
__________ (1) Quoted prices in active markets for identical assets. (2) Quoted prices for similar assets and liabilities in active markets. (3) Significant unobservable inputs. (4) Included within "Other current assets" on the consolidated balance sheet. (5) Included within "Other assets" on the consolidated balance sheet. (6) Included within "Accrued expenses" on the consolidated balance sheet. (7) Included within "Other liabilities" on the consolidated balance sheet.

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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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