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DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended
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Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments | The Company held the following interest rate swaps as of September 30, 2023 and December 31, 2022 (dollar amounts in thousands):
|  |  |  | September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  | September 30, 2023 |  |
Hedged Item |  |  |  | Notional Amount |  | Designation Date |  | Effective Date |  | Termination Date |  | Fixed Interest Rate |  | Estimated Fair Value
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Asset (Liability)
1-month Term SOFR Loan |  |  |  | 150,000 |  |  |  |  | December 13, 2017 |  | July 1, 2019 |  | June 30, 2024 |  | 2.423 | % |  | 3,395 |  |  |
1-month Term SOFR Loan |  |  |  | 200,000 |  |  |  |  | December 13, 2017 |  | January 1, 2018 |  | December 31, 2024 |  | 2.313 | % |  | 7,440 |  |  |
1-month Term SOFR Loan |  |  |  | 75,000 |  |  |  |  | October 10, 2018 |  | July 1, 2020 |  | June 30, 2025 |  | 3.220 | % |  | 2,381 |  |  |
1-month Term SOFR Loan |  |  |  | 75,000 |  |  |  |  | October 10, 2018 |  | July 1, 2020 |  | June 30, 2025 |  | 3.199 | % |  | 2,486 |  |  |
1-month Term SOFR Loan |  |  |  | 75,000 |  |  |  |  | October 10, 2018 |  | July 1, 2020 |  | June 30, 2025 |  | 3.209 | % |  | 2,339 |  |  |
1-month Term SOFR Loan |  |  |  | 100,000 |  |  |  |  | December 18, 2018 |  | December 30, 2022 |  | December 31, 2027 |  | 2.885 | % |  | 6,052 |  |  |
1-month Term SOFR Loan |  |  |  | 100,000 |  |  |  |  | December 18, 2018 |  | December 30, 2022 |  | December 31, 2027 |  | 2.867 | % |  | 6,187 |  |  |
1-month Term SOFR Loan |  |  |  | 575,000 |  |  |  |  | December 15, 2020 |  | July 31, 2025 |  | December 31, 2027 |  | 1.415 | % |  | 31,528 |  |  |
1-month Term SOFR Loan |  |  |  | 125,000 |  |  |  |  | December 15, 2020 |  | July 1, 2025 |  | December 31, 2027 |  | 1.404 | % |  | 7,369 |  |  |
Basis Swap (1) |  |  |  | — |  |  |  | March 31, 2023 |  | March 24, 2023 |  | December 31, 2027 |  | N/A |  | (1,923) |  |  |
|  |  |  | $ | 1,475,000 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 67,254 |  |  |
(1) The notional of the basis swap amortizes to match the total notional of the interest rate swap portfolio over time |  |
|  |  |  |  |  | December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  | December 31, 2022
Hedged Item |  |  |  |  | Notional Amount |  | Designation Date |  | Effective Date |  | Termination Date |  | Fixed Interest Rate |  |  |  | Estimated Fair Value
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Asset (Liability)
1-month USD LIBOR Loan |  |  |  |  |  | 150,000 |  |  | December 13, 2017 |  | July 1, 2019 |  | June 30, 2024 |  | 2.423 | % |  |  |  | 5,012 |
1-month USD LIBOR Loan |  |  |  |  |  | 200,000 |  |  | December 13, 2017 |  | January 1, 2018 |  | December 31, 2024 |  | 2.313 | % |  |  |  | 8,380 |
1-month USD LIBOR Loan |  |  |  |  |  | 75,000 |  |  | October 10, 2018 |  | July 1, 2020 |  | June 30, 2025 |  | 3.220 | % |  |  |  | 1,831 |
1-month USD LIBOR Loan |  |  |  |  |  | 75,000 |  |  | October 10, 2018 |  | July 1, 2020 |  | June 30, 2025 |  | 3.199 | % |  |  |  | 1,905 |
1-month USD LIBOR Loan |  |  |  |  |  | 75,000 |  |  | October 10, 2018 |  | July 1, 2020 |  | June 30, 2025 |  | 3.209 | % |  |  |  | 1,970 |
1-month USD LIBOR Loan |  |  |  |  |  | 100,000 |  |  | December 18, 2018 |  | December 30, 2022 |  | December 31, 2027 |  | 2.885 | % |  |  |  | 4,252 |
1-month USD LIBOR Loan |  |  |  |  |  | 100,000 |  |  | December 18, 2018 |  | December 30, 2022 |  | December 31, 2027 |  | 2.867 | % |  |  |  | 4,153 |
1-month USD LIBOR Loan |  |  |  |  |  | 575,000 |  |  | December 15, 2020 |  | July 31, 2025 |  | December 31, 2027 |  | 1.415 | % |  |  |  | 23,742 |
1-month USD LIBOR Loan |  |  |  |  |  | 125,000 |  |  | December 15, 2020 |  | July 1, 2025 |  | December 31, 2027 |  | 1.404 | % |  |  |  | 5,467 |
|  |  |  |  |  | $ | 1,475,000 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 56,712 |
The Company held the following cross-currency rate swaps as of September 30, 2023 and December 31, 2022 (dollar amounts in thousands):
|  |  |  |  |  |  |  |  | September 30, 2023 | December 31, 2022 |  | September 30, 2023 |  | December 31, 2022
|  | Effective Date |  | Termination Date |  | Fixed Rate |  | Aggregate Notional Amount |  | Fair Value Asset (Liability)
Pay CHF |  | December 21, 2020 |  | December 22, 2025 |  | 3.00% |  | CHF | 356,886 |  | 374,137 |  |  | (9,326) |  |  | (4,241) |
Receive U.S.$ |  |  | 3.98% |  | $ | 400,637 |  | 420,001 |  |  |
Pay CHF |  | September 28, 2022 |  | September 29, 2023 |  | 1.95% |  | CHF | — |  | 48,532 |  |  | — |  |  | (3,528) |
Receive U.S.$ |  |  | 5.32% |  | $ | — |  | 49,142 |  |  |
Pay CHF |  | September 22, 2023 |  | September 29, 2024 |  | 2.40% |  | CHF | 28,500 |  | — |  |  | 342 |  |  | — |
Receive U.S.$ |  |  | 6.27% |  | $ | 31,457 |  | — |  |  |
Total |  |  |  |  |  |  |  |  |  |  |  | $ | (8,984) |  |  | $ | (7,769) |
The Company held the following cross-currency rate swaps designated as net investment hedges as of September 30, 2023 and December 31, 2022, respectively (dollar amounts in thousands):
|  |  |  |  |  |  |  |  | September 30, 2023 |  | December 31, 2022 |  | September 30, 2023 |  | December 31, 2022
|  | Effective Date |  | Termination Date |  | Fixed Rate |  | Aggregate Notional Amount |  | Fair Value Asset (Liability)
Pay EUR |  | October 3, 2018 |  | September 30, 2023 |  | —% |  | EUR | — |  |  | 51,760 |  |  | — |  |  | 4,713 |
Receive U.S.$ |  |  |  | 2.57% |  | $ | — |  |  | 60,000 |  |  |
Pay EUR |  | October 3, 2018 |  | September 30, 2025 |  | —% |  | EUR | 38,820 |  |  | 38,820 |  |  | 4,223 |  |  | 4,307 |
Receive U.S.$ |  |  |  | 2.19% |  | $ | 45,000 |  |  | 45,000 |  |  |
Pay CHF |  | May 26, 2022 |  | December 16, 2028 |  | —% |  | CHF | 288,210 |  |  | 288,210 |  |  | (25,294) |  |  | (14,663) |
Receive U.S.$ |  |  |  | 1.94% |  | $ | 300,000 |  |  | 300,000 |  |  |
Total |  |  |  |  |  |  |  |  |  |  |  |  | $ | (21,071) |  |  | $ | (5,643) |
Schedule of Fair Value and Presentation of Derivatives | The following table summarizes the fair value for derivatives designated as hedging instruments in the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022:
|  | Fair Value as of |  |
Location on Balance Sheet (1): |  | September 30, 2023 |  | December 31, 2022 |  |  |  |
Dollars in thousands |  |
Derivatives designated as hedges — Assets: |  |  |  |  |  |  |  |
Prepaid expenses and other current assets |  |  |  |  |  |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  |
Interest rate swap(2) |  | $ | 19,938 |  |  | $ | 16,682 |  |  |  |  |
Cross-currency swap |  | 4,242 |  |  | 4,497 |  |  |  |  |
Net Investment Hedges |  |  |  |  |  |  |  |
Cross-currency swap |  | 2,380 |  |  | 11,653 |  |  |  |  |
Other assets |  |  |  |  |  |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  |
Interest rate swap(2) |  | 49,240 |  |  | 40,030 |  |  |  |  |
Cross-currency swap |  | — |  |  | — |  |  |  |  |
Net Investment Hedges |  |  |  |  |  |  |  |
Cross-currency swap |  | 3,220 |  |  | 3,311 |  |  |  |  |
Total derivatives designated as hedges — Assets |  | $ | 79,020 |  |  | $ | 76,173 |  |  |  |  |
Derivatives designated as hedges — Liabilities: |  |  |  |  |  |  |  |
Accrued expenses and other current liabilities |  |  |  |  |  |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  |
Interest rate swap(2) |  | $ | 663 |  |  | $ | — |  |  |  |  |
Cross-currency swap |  | — |  |  | 3,528 |  |  |  |  |
Foreign currency forward contracts |  | 127 |  |  |  |  |  |  |
Net Investment Hedges |  |  |  |  |  |  |  |
Cross-currency swap |  | — |  |  | — |  |  |  |  |
Other liabilities |  |  |  |  |  |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  |
Interest rate swap(2) |  | 1,261 |  |  | — |  |  |  |  |
Cross-currency swap |  | 13,226 |  |  | 8,738 |  |  |  |  |
Net Investment Hedges |  |  |  |  |  |  |  |
Cross-currency swap |  | 26,671 |  |  | 20,608 |  |  |  |  |
Total derivatives designated as hedges — Liabilities |  | $ | 41,948 |  |  | $ | 32,874 |  |  |  |  |
(1) The Company classifies derivative assets and liabilities as current based on the cash flows expected to be incurred within the following 12 months. (2) At September 30, 2023 and December 31, 2022, the total notional amounts related to the Company’s interest rate swaps were both $1.5 billion, respectively.
Effect of Derivative Instruments Designated as Cash Flow Hedges on Statements of Operations | The following presents the effect of derivative instruments designated as cash flow hedges and net investment hedges on the accompanying condensed consolidated statement of operations during the three and nine months ended September 30, 2023 and 2022:
Dollars in thousands | Balance in AOCI Beginning of Quarter |  | Amount of Gain (Loss) Recognized in AOCI |  | Amount of Gain (Loss) Reclassified from AOCI into Earnings |  | Balance in AOCI End of Quarter |  | Location in Statements of Operations
Three Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  |  |
Interest rate swap | $ | 56,901 |  |  | $ | 15,317 |  |  | $ | 4,964 |  |  | $ | 67,254 |  |  | Interest expense
Cross-currency swap | (18,925) |  |  | 13,796 |  |  | 15,347 |  |  | (20,476) |  |  | Other income, net
Foreign Currency Forward Contract | (123) |  |  | 98 |  |  | 87 |  |  | (112) |  |  | Cost of Sales
Net Investment Hedges |  |  |  |  |  |  |  |  |
Cross-currency swap | (21,239) |  |  | 6,051 |  |  | 1,772 |  |  | (16,960) |  |  | Interest income
| $ | 16,614 |  |  | $ | 35,262 |  |  | $ | 22,170 |  |  | $ | 29,706 |  |  |
Three Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  |  |
Interest rate swap | $ | 26,939 |  |  | $ | 32,939 |  |  | $ | (726) |  |  | $ | 60,604 |  |  | Interest expense
Cross-currency swap | (17,835) |  |  | 12,332 |  |  | 17,627 |  |  | (23,130) |  |  | Other income, net
Net Investment Hedges |  |  |  |  |  |  |  |  |
Cross-currency swap | 7,506 |  |  | 9,403 |  |  | 2,378 |  |  | 14,531 |  |  | Interest income
| $ | 16,610 |  |  | $ | 54,674 |  |  | $ | 19,279 |  |  | $ | 52,005 |  |  |
Dollars in thousands | Balance in AOCI Beginning of Year |  | Amount of Gain (Loss) Recognized in AOCI |  | Amount of Gain (Loss) Reclassified from AOCI into Earnings |  | Balance in AOCI End of Quarter |  | Location in Statements of Operations
Nine Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  |  |
Interest rate swap | $ | 56,712 |  |  | $ | 23,477 |  |  | $ | 12,935 |  |  | $ | 67,254 |  |  | Interest expense
Cross-currency swap | (20,271) |  |  | 3,114 |  |  | 3,319 |  |  | (20,476) |  |  | Other income (expense),net
Foreign Currency Forward Contract | — |  |  | 333 |  |  | 445 |  |  | (112) |  |  |
Net Investment Hedges |  |  |  |  |  |  |  |  |
Cross-currency swap | (6,914) |  |  | (4,066) |  |  | 5,980 |  |  | (16,960) |  |  | Interest income
| $ | 29,527 |  |  | $ | 22,858 |  |  | $ | 22,679 |  |  | $ | 29,706 |  |  |
Nine Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  |  |
Interest rate swap | $ | (43,956) |  |  | $ | 94,729 |  |  | $ | (9,831) |  |  | $ | 60,604 |  |  | Interest expense
Cross-currency swap | (9,688) |  |  | 33,784 |  |  | 47,226 |  |  | (23,130) |  |  | Other income (expense), net
Net Investment Hedges |  |  |  |  |  |  |  |  |
Cross-currency swap | (2,321) |  |  | 21,528 |  |  | 4,676 |  |  | 14,531 |  |  | Interest income
| $ | (55,965) |  |  | $ | 150,041 |  |  | $ | 42,071 |  |  | $ | 52,005 |  |  |
Derivatives Not Designated as Hedging Instruments | The following table summarizes the gains (losses) of derivative instruments not designated as hedges on the condensed consolidated statements of income, which was included in other income:
Dollars in thousands |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Foreign currency swaps |  | 135 |  |  | 328 |  |  | 778 |  |  | 1,148 |
Total |  | $ | 135 |  |  | $ | 328 |  |  | $ | 778 |  |  | $ | 1,148 |

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