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Financial Instruments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurements Financial Instruments and Fair Value Measurements
Financial Instruments
A financial instrument is cash or a contract that imposes an obligation to deliver or conveys a right to receive cash or another financial instrument. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of fair value because of the short maturity of these instruments. The fair value of debt approximates the carrying value of debt, due to the variable interest rate on our Credit Facility and the maturity of outstanding debt.
Derivative Instruments and Hedging Activities
On June 30, 2025, the Company had open Mexican peso-denominated foreign currency forward contracts. The Company used foreign currency forward contracts solely for hedging and not for speculative purposes during 2025 and 2024. Management believes that its use of these instruments to reduce risk is in the Company’s best interest. The counterparties to these financial instruments are financial institutions with investment grade credit ratings.
Foreign Currency Exchange Rate Risk
Foreign currency transactions are remeasured into the functional currency using translation rates in effect at the time of the transaction with the resulting adjustments included on the condensed consolidated statements of operations within other expense (income), net. These foreign currency transaction losses (gains), including the impact of hedging activities, were $3,395 and $(2,270) for the three months ended June 30, 2025 and 2024, respectively, and $2,963 and $(326) for the six months ended June 30, 2025 and 2024, respectively.
The Company conducts business internationally and, therefore, is exposed to foreign currency exchange rate risk. The Company uses derivative financial instruments as cash flow hedges to manage its exposure to fluctuations in foreign currency exchange rates by reducing the effect of such fluctuations on foreign currency denominated intercompany transactions, inventory purchases and other foreign currency exposures.
Cash Flow Hedges
The Company entered into foreign currency forward contracts to hedge the Mexican peso currency in 2025 and 2024. These forward contracts were executed to hedge forecasted transactions and have been accounted for as cash flow hedges. As such, gains and losses on derivatives qualifying as cash flow hedges are recorded in accumulated other comprehensive loss, to the extent that hedges are effective, until the underlying transactions are recognized in earnings. Unrealized amounts in accumulated other comprehensive loss fluctuate based on changes in the fair value of hedge derivative contracts at each reporting period. The cash flow hedges were highly effective. The effectiveness of the transactions was measured using regression analysis and forecasted future purchases of the currency.
In certain instances, the foreign currency forward contracts may not qualify for hedge accounting or are not designated as hedges and, therefore, are marked-to-market with gains and losses recognized in the Company’s condensed consolidated statements of operations as a component of other (income) expense, net. At June 30, 2025, all of the Company’s foreign currency forward contracts were designated as cash flow hedges.
The Company’s foreign currency forward contracts offset a portion of the gains and losses on the underlying foreign currency denominated transactions as follows:
Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedges
The Company holds Mexican peso-denominated foreign currency forward contracts with a notional amount at June 30, 2025 of $15,916, which expire ratably on a monthly basis from July 2025 to December 2025. The notional amounts at December 31, 2024 related to Mexican peso-denominated foreign currency forward contracts were $32,339.
The Company evaluated the effectiveness of the Mexican peso denominated forward contracts held as of June 30, 2025 and concluded that the hedges were highly effective.
The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows:
Notional amounts (A)
Prepaid expenses
 and other current assets		Accrued expenses and
other current liabilities
June 30,
2025		December 31,
2024		June 30,
2025		December 31,
2024		June 30,
2025		December 31,
2024
Derivatives designated as hedging instruments:
Cash flow hedges:
Forward currency contracts$15,916 $32,339 $1,507 $— $— $2,429 
_____________________________
(A)Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars.
Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net loss (income) for the three months ended June 30 were as follows:
Gain (loss) recorded in other
comprehensive income (loss)
Gain reclassified from
other comprehensive income
(loss) into net loss (income) (A)
2025202420252024
Derivatives designated as cash flow hedges:
Forward currency contracts$2,265 $(2,371)$29 $414 
_____________________________
(A)
(Losses) gains reclassified from other comprehensive income (loss) into net loss (income) recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $(126) and $134 for the three months ended June 30, 2025 and 2024, respectively. Gains reclassified from other comprehensive income (loss) into net loss (income) recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $155 and $280 for the three months ended June 30, 2025 and 2024, respectively.
Gross amounts recorded for the cash flow hedges in other comprehensive income (loss) and in net loss for the six months ended June 30 were as follows:
Gain (loss) recorded in other
comprehensive income (loss)
(Loss) gain reclassified from
other comprehensive income (loss) into net loss (A)
2025202420252024
Derivatives designated as cash flow hedges:
Forward currency contracts$3,367$(1,628)$(569)$1,068
(A)
(Losses) gains reclassified from other comprehensive income (loss) into net loss recognized in SG&A in the Company’s condensed consolidated statements of operations were $(127) and $251 for the six months ended June 30, 2025 and 2024, respectively. (Losses) gains reclassified from other comprehensive income (loss) into net loss recognized in COGS in the Company’s condensed consolidated statements of operations were $(442) and $817 for the six months ended June 30, 2025 and 2024, respectively.
Cash flows from derivatives used to manage foreign currency exchange risks are classified as operating activities within the condensed consolidated statements of cash flows.
Fair Value Measurements
Certain assets and liabilities held by the Company are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of the inputs used. Fair values estimated using Level 1 inputs consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Fair values estimated using Level 2 inputs, other than quoted prices, are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency and cross-currency contracts, inputs include forward foreign currency exchange rates. Fair values estimated using Level 3 inputs consist of significant unobservable inputs.
The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of inputs used.
June 30,
2025		December 31,
2024
Fair values estimated using
Fair
value		Level 1
inputs		Level 2
inputs		Level 3
inputs		Fair
value
Financial assets carried at fair value:
Forward currency contracts$1,507 $— $1,507 $— $— 
Total financial assets carried at fair value$1,507 $— $1,507 $— $— 
Financial liabilities carried at fair value:
Forward currency contracts$— $— $— $— $2,429 
Total financial liabilities carried at fair value$— $— $— $— $2,429 
There were no transfers in or out of Level 3 from other levels in the fair value hierarchy for the six months ended June 30, 2025.