XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Derivative Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Note 7 – Derivative Financial Instruments We are exposed to market risk from changes in foreign currency exchange rates, short-term interest rates and price fluctuations of certain material commodities such as copper. Market risks for changes in interest rates relate primarily to our debt obligations under our Credit Agreement. Foreign currency exchange risks are attributable to sales to foreign customers and purchases from foreign suppliers not denominated in the location’s functional currency, foreign plant operations, intercompany indebtedness, intercompany investments and include exposures to the European Euro, Mexican Peso, Canadian Dollar, Hungarian Forint, Macedonian Denar, Ukrainian Hryvnia, Japanese Yen, Chinese Renminbi, Korean Won and Vietnamese Dong. The Company regularly enters into derivative contracts with the objective of managing its financial and operational exposure arising from these risks by offsetting gains and losses on the underlying exposures with gains and losses on the financial instruments used to hedge them. The maximum length of time over which we hedge our exposure to foreign currency exchange risks is one year. We had foreign currency derivative contracts with a notional value of $38,537 and $29,273 outstanding as of September 30, 2018 and December 31, 2017, respectively. The maximum length of time over which we hedge our exposure to price fluctuations in material commodities is two years. We had copper commodity swap contracts with a notional value of $0 and $404 outstanding at September 30, 2018 and December 31, 2017, respectively. Note 7 – Derivative Financial Instruments – Continued We do not enter into derivative financial instrument arrangements for speculative or trading purposes. Our hedging relationships are formally documented at the inception of the hedge, and hedges must be highly effective in offsetting changes to future cash flows on hedged transactions both at the inception of a hedge and on an ongoing basis to be designated for hedge accounting treatment. For derivative contracts which can be classified as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded to accumulated other comprehensive income (loss) in the consolidated condensed balance sheet. When the underlying hedge transaction is realized, the gain or loss included in accumulated other comprehensive income (loss) is recorded in earnings in the consolidated condensed statements of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. We record the ineffective portion of foreign currency hedging instruments, if any, to foreign currency gain (loss) in the consolidated condensed statements of income. See Note 9 for unrealized gains (losses) associated with derivatives reported in accumulated other comprehensive income as of December 31, 2017 that was reclassified into earnings during 2018. Though we continuously monitor the hedging program, derivative positions and hedging strategies, foreign currency forward exchange agreements have not always been designated as hedging instruments for accounting purposes. The Company uses an income approach to value derivative instruments, analyzing quoted market prices to calculate the forward values and then discounts such forward values to the present value using benchmark rates at commonly quoted intervals for the instrument’s full term. Information related to the recurring fair value measurement of derivative instruments in our consolidated condensed balance sheet as of September 30, 2018 is as follows:
|  |  |  |  |  | Asset Derivatives |  |  | Liability Derivatives |  |  | Net Asset/ (Liabilities) |
|  | Hedge Designation |  | Fair Value Hierarchy |  | Balance Sheet Location |  |  | Fair Value |  |  | Balance Sheet Location |  | Fair Value |  |
Foreign currency derivatives |  | Cash flow hedge |  | Level 2 |  |  | Current assets |  |  | $ | 1,299 |  |  | Current liabilities |  | $ | — |  |  | $ | 1,299 |
Information relating to the effect of derivative instruments on our consolidated condensed statements of income is as follows:
|  | Location |  | Three Months Ended September 30, 2018 |  |  | Three Months Ended September 30, 2017 |  |  | Nine Months Ended September 30, 2018 |  |  | Nine Months Ended September 30, 2017 |
Foreign currency derivatives |  | Product revenues |  | $ | — |  |  | $ | 54 |  |  | $ | — |  |  | $ | 54 |
|  | Cost of sales |  |  | 391 |  |  |  | 1,424 |  |  |  | (214 | ) |  |  | 1,303 |
|  | Selling, general and administrative |  | — |  |  | — |  |  |  | 75 |  |  |  | (216 | )
|  | Other comprehensive income |  |  | 1,753 |  |  | (1,234 | ) |  |  | 2,304 |  |  |  | 2,541 |
|  | Foreign currency (loss) gain |  |  | 11 |  |  | 15 |  |  |  | 58 |  |  |  | (62 | )
Total foreign currency derivatives |  |  |  | $ | 2,155 |  |  | $ | 259 |  |  | $ | 2,223 |  |  | $ | 3,620 |
Commodity derivatives |  | Cost of sales |  | $ | — |  |  | $ | (4 | ) |  |  | 145 |  |  | $ | 25 |
|  | Other comprehensive income |  | — |  |  | 136 |  |  |  | (218 | ) |  |  | 184 |
Total commodity derivatives |  |  |  | $ | — |  |  | $ | 132 |  |  | $$ | (73 | ) |  | $ | 209 |
We did not incur any hedge ineffectiveness during the three- and nine-month periods ended September 30, 2018 and 2017.

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 financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration