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Derivatives | 9 Months Ended
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Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives We are directly and indirectly affected by changes in foreign currency, which may adversely impact our financial performance and are referred to as “market risks.” When deemed appropriate, we use derivatives as a risk management tool to mitigate the potential impact of certain market risks. We do not enter into derivative financial instruments for trading purposes. We enter into foreign currency contracts to manage our foreign exchange exposure related to certain balance sheet items that do not meet the requirements for hedge accounting. These derivative instruments are adjusted to fair value at the end of each period through earnings. The gain or loss recorded on these instruments is substantially offset by the remeasurement adjustment on the foreign currency denominated asset or liability. We pay interest on our Credit Agreement which fluctuates based on changes in our benchmark interest rates. In order to mitigate the risk of increases in benchmark rates, we entered into an interest rate swap agreement whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable amounts calculated by reference to the notional amount. The interest rate swaps were designated as cash flow hedges. Cash flows related to the interest rate swap agreement are included in interest expense. We determine the fair value of our foreign currency derivatives and interest rate swaps based on observable market-based inputs or unobservable inputs that are corroborated by market data. We do not view the fair value of our derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying exposure. All derivatives are carried at fair value in our consolidated balance sheets. We consider the risk of counterparty default to be minimal. We report cash flows from our hedging instruments in the same cash flow statement category as the hedged items. The following table summarizes the terms and fair value of our outstanding derivative financial instruments as of September 30, 2022:
|  |  |  |  | Derivative Assets |  | Derivative Liabilities
| Notional Amount |  | Maturity Date |  | Classification |  | Fair Value |  | Classification |  | Fair Value
Cash flow hedges |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 400,000 |  |  | March 2027 |  | Other assets, net |  | $ | 16,123 |  |  | Other liabilities |  | $ | — |
Economic (non-designated) hedges |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 54,062 |  |  | October 2022 |  | Other current assets |  | $ | 97 |  |  | Other current liabilities |  | $ | 273 |
In March 2021, we terminated the remaining $300 million in notional value of interest rate swaps concurrent with the debt financing transaction. The remaining balance of the fair value adjustments of $25.1 million, which related to these terminated interest rate swaps, within Accumulated other comprehensive loss was reclassified to Loss on extinguishment of debt within our consolidated statements of operations for the nine months ended September 30, 2021. The following table summarizes the terms and fair value of our outstanding derivative financial instruments as of December 31, 2021:
|  |  |  |  | Derivative Assets |  | Derivative Liabilities
| Notional Amount |  | Maturity Date |  | Classification |  | Fair Value |  | Classification |  | Fair Value
Economic (non-designated) hedges |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | $ | 9,700 |  |  | January 2022 |  | Other current assets |  | $ | 81 |  |  | Other current liabilities |  | $ | — |
The following table summarizes the effect of cash flow hedge accounting on our consolidated statements of operations for the three and nine months ended September 30, 2022:
| Amount of Gain Recognized in Other Comprehensive Income (Loss) |  | Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income |  | Total Amount of Expense Line Items Presented in the Consolidated Statement of Operations in Which the Effects are Recorded |  | Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income
| Three months ended September 30, 2022 |  | Nine months ended September 30, 2022 |  |  |  | Three months ended September 30, 2022 |  | Nine months ended September 30, 2022 |  | Three months ended September 30, 2022 |  | Nine months ended September 30, 2022
Interest rate swaps | $ | 12,153 |  |  | $ | 14,197 |  |  | Interest expense, net |  | $ | 39,869 |  |  | $ | 87,727 |  |  | $ | (234) |  |  | $ | (1,926) |
The following table summarizes the effect of cash flow hedge accounting on our consolidated statements of operations for the three and nine months ended September 30, 2021:
| Amount of Gain Recognized in Other Comprehensive Income (Loss) |  | Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income |  | Total Amount of Expense Line Items Presented in the Consolidated Statement of Operations in Which the Effects are Recorded |  | Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income
| Three months ended September 30, 2021 |  | Nine months ended September 30, 2021 |  |  |  | Three months ended September 30, 2021 |  | Nine months ended September 30, 2021 |  | Three months ended September 30, 2021 |  | Nine months ended September 30, 2021
Interest rate swaps | $ | — |  |  | $ | 2,426 |  |  | Loss on extinguishment of debt |  | $ | — |  |  | $ | (40,433) |  |  | $ | — |  |  | $ | (25,518) |
The amount of ineffectiveness associated with these contracts was immaterial for the periods presented. For the three and nine months ended September 30, 2022 we recognized losses of $1.8 million and $3.2 million associated with our economic (non-designated) foreign currency contracts. For the three and nine months ended September 30, 2021 we recognized losses of $0.9 million and $2.5 million associated with our economic (non-designated) foreign currency contracts. We recorded the change in fair value of derivative instruments and the remeasurement adjustment of the foreign currency denominated asset or liability in other operating income, net for our foreign exchange contracts.

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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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