XML 40 R17.htm IDEA: XBRL DOCUMENT
v3.20.1

FINANCIAL DERIVATIVE INSTRUMENTS | 3 Months Ended
--- | ---
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
FINANCIAL DERIVATIVE INSTRUMENTS | FINANCIAL DERIVATIVE INSTRUMENTS Commodity Pricing Risk As of March 31, 2020, the Company was party to commodity swap contracts for specific commodities with notional amounts of approximately $68.0 million. The Company uses commodity swap contracts to mitigate the risks associated with fluctuations in commodity prices impacting its cash flows related to inventory purchases from suppliers. The Company does not hedge all commodity price risk. At inception, the Company designated the commodity swap contracts as cash flow hedges. The contracts mature at specified monthly settlement dates through January 2021. The effective portion of the hedging transaction is recognized in Accumulated Other Comprehensive Income (“AOCI”) and transferred to earnings when the forecasted hedged transaction takes place or when the forecasted hedged transaction is no longer probable to occur. Financial Statement Presentation As of March 31, 2020 and December 31, 2019, the fair value carrying amount of the Company’s derivative instruments were recorded as follows (in thousands):
|  |  |  | Asset / (Liability) Derivatives |  |
|  | Balance Sheet Caption |  | March 31, 2020 |  | December 31, 2019
Derivatives designated as hedging instruments |  |  |  |  |  |
Commodity swap contracts |  | Prepaid expenses and other |  | $ | 317 |  |  | $ | 1,290 |
Commodity swap contracts |  | Other accrued liabilities |  | (8,109) |  |  | (3,216) |
Total derivatives designated as hedging instruments |  |  |  | $ | (7,792) |  |  | $ | (1,926) |
The following table summarizes the gain or loss recognized in AOCI as of March 31, 2020 and December 31, 2019 and the amounts reclassified from AOCI into earnings for the three months ended March 31, 2020 and 2019 (in thousands):
|  | Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion, net of tax) |  |  |  | Location of Gain (Loss) Reclassified from AOCI into Earnings (Effective Portion) |  | Amount of Gain (Loss) Reclassified from AOCI into Earnings |  |  |  |  |  |
|  | March 31, 2020 |  | December 31, 2019 |  |  |  | Three Months Ended March 31, |  |  |  |  |  |
|  |  |  |  |  |  |  | 2020 |  | 2019 |  |  |  |
Derivatives instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity swap contracts |  | $ | (5,995) |  |  | $ | (2,112) |  |  | Cost of sales |  | $ | (1,785) |  |  | $ | (168) |  |  |  |  |
Over the next 12 months, the Company expects to reclassify approximately $8.0 million of pretax deferred losses, related to the commodity swap contracts, from AOCI to cost of sales as inventory purchases are settled.

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 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 http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration