XML 54 R22.htm IDEA: XBRL DOCUMENT v3.25.1
Derivative instruments
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments Derivative instruments
The Company’s derivatives that are designated for hedge accounting consist of cross-currency interest rate swaps, foreign currency forwards, call spreads, interest coupon only swaps and sustainability linked ESG Principal Only Swap. All these derivatives are classified as cash flow hedges. Further details are in “Derivatives designated as hedging instruments” section.

Additionally, the Company enters into certain derivatives that are not designated for hedge accounting. The Company has entered into foreign currency forwards, call spread and interest coupon only swap to mitigate the foreign currency fluctuations on foreign currency denominated liabilities. Further details are explained in the “Derivatives not designated as hedging instruments” section.
The following table presents the fair values of derivative instruments included in the consolidated balance sheets as of December 31, 2024 and 2023:
AssetsLiabilities
Type of DerivativeBalance Sheets Location20242023Balance Sheets Location20242023
Derivatives designated as hedging instruments
Cash Flow hedge
Forward contractsOther receivables$2,093 $119 Accrued payroll and other liabilities$— $(1,536)
Call spread + Coupon-only swapDerivative instruments16,998 2,823 Derivative instruments(179)(185)
Sustainability linked ESG Principal Only SwapDerivative instruments25,617 18,466 Derivative instruments(207)(261)
Cross-currency interest rate swap Derivative instruments37,627 19,337 Derivative instruments(620)(2,398)
Subtotal$82,335 $40,745 $(1,006)$(4,380)
Derivatives not designated as hedging instruments
Forward contractsDerivative instruments48 — Derivative instruments(286)— 
Call Spread + Coupon-only swapDerivative instruments— 3,761 Derivative instruments— (12,578)
Call spreadDerivative instruments— 2,099 Derivative instruments— — 
Coupon-only swapDerivative instruments— — Derivative instruments— (7,336)
Subtotal$48 $5,860 $(286)$(19,914)
Total derivative instruments$82,383 $46,605 $(1,292)$(24,294)

Derivatives designated as hedging instruments

Cash flow hedge

The Company has entered into various forward contracts in a few territories to hedge a portion of the foreign exchange risk associated with forecasted imports of goods. The effect of the hedges results in fixing the cost of goods acquired (i.e. the net settlement or collection adjusts the cost of inventory paid to the suppliers). As of December 31, 2024, the Company estimated that the whole amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into earnings within the next 12 months.

Moreover, the Company, through its Brazilian subsidiary, has entered into certain instruments designated as cash flow hedge to reduce the exposure to variability in expected future cash flows related to intercompany loans (principal and interest). The Company uses call spread, coupon-only swaps, cross-currency interest rate swap and a sustainability-linked ESG principal only swap. As of December 31, 2024, the Company estimated that the whole amount of net derivative gains or losses related to its cash flow hedges included in accumulated other comprehensive loss will be reclassified into earnings within the next 5 years.

As of December 31, 2024 and 2023, for certain call spreads, the Company’s Brazilian subsidiary paid a one time net premium of $8,894 and $2,581, respectively, to buy the options.
The following table presents the notional amounts of the Company’s outstanding derivative instruments classified as cash flow hedge:
Notional amount as of December 31,
20242023
Forward contracts$48,799 $44,412 
Call Spread + Coupon-only swap89,000 24,000 
Sustainability-linked ESG Principal Only50,000 50,000 
Cross-currency interest rate swap80,000 80,000 
Additional disclosures

The following table presents the pretax amounts affecting income and other comprehensive (loss) income for the fiscal years ended December 31, 2024, 2023 and 2022 for each type of derivative relationship: 
Derivatives in Cash Flow
Hedging Relationships
Gain (Loss) Recognized in Accumulated OCI on Derivative
(Gain) Loss Reclassified from Accumulated OCI into income (loss)
202420232022202420232022
Forward contracts (i)$4,317 $(6,710)$(1,225)$(807)$6,172 $(263)
Cross-currency interest rate swaps (ii)24,628 (14,730)(31,174)(17,632)10,913 8,727 
Call Spread (ii)
2,469 30 — (9,637)2,385 3,275 
Coupon-only swap (ii)
4,635 (263)— (472)(1,752)(964)
Sustainability linked ESG Principal Only Swap (ii)
12,142 (1,224)— (11,800)2,014 — 
Total$48,191 $(22,897)$(32,399)$(40,348)$19,732 $10,775 

(i)The results recognized in income related to forward contracts were recorded as an adjustment to food and paper.
(ii)The net gain (loss) recognized in income is presented as follows:
Adjustment to:202420232022
Net interest expense and other financing results(1,419)(181)(3,675)
(Loss) gain from derivative instruments (a)
— (6)5,907 
Foreign currency exchange results40,960 (13,373)(13,270)
Total$39,541 $(13,560)$(11,038)

(a) Related to the discontinued relationships of Cross-currency interest rate swaps during July 2023 and September 2022.

Derivatives not designated as hedging instruments

The Company has entered into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately within “Gain (loss) from derivative instruments”.

For the fiscal years ended December 31, 2024 the Company made payments amounting to $6,380 and collections amounting to $331, as a result of unwound derivatives not designated as hedging instruments.
The following table presents the notional amounts of the Company’s outstanding derivative instruments not designed as hedging instruments:

Notional amount as of December 31,
20242023
Forward contracts
$5,000 $— 
Call Spread + Coupon-only swap— 50,000 
Call Spread— 30,000 
Coupon-only swap— 30,000