6. Derivative Financial Instruments (Tables)
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9 Months Ended |
Sep. 30, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
The following tables present the fair values of derivative instruments included in our condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | | Prepaid Expenses and Other Current Assets | | Other Assets | | Other Current Liabilities | | Other Liabilities | Derivatives designated as hedging instruments: | | | | | | | | | Foreign exchange forward contracts | | $ | 628 | | | $ | 18 | | | $ | 36 | | | $ | — | | Commodity swap contracts | | 633 | | | — | | | — | | | — | | Total derivatives designated as hedging instruments | | $ | 1,261 | | | $ | 18 | | | $ | 36 | | | $ | — | | | | | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | | | Foreign exchange forward contracts | | $ | 5,421 | | | $ | — | | | $ | 1,684 | | | $ | — | | Interest rate swap contracts | | — | | | — | | | — | | | 595 | | Total derivatives not designated as hedging instruments | | $ | 5,421 | | | $ | — | | | $ | 1,684 | | | $ | 595 | | Total derivative instruments | | $ | 6,682 | | | $ | 18 | | | $ | 1,720 | | | $ | 595 | |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | | Prepaid Expenses and Other Current Assets | | Other Current Liabilities | | Other Liabilities | Derivatives designated as hedging instruments: | | | | | | | Foreign exchange forward contracts | | $ | — | | | $ | 2,504 | | | $ | 341 | | Commodity swap contracts | | 1,478 | | | — | | | — | | Total derivatives designated as hedging instruments | | $ | 1,478 | | | $ | 2,504 | | | $ | 341 | | | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | Foreign exchange forward contracts | | $ | 1,837 | | | $ | 2,776 | | | $ | — | | Total derivatives not designated as hedging instruments | | $ | 1,837 | | | $ | 2,776 | | | $ | — | | Total derivative instruments | | $ | 3,315 | | | $ | 5,280 | | | $ | 341 | |
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Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] |
The following table presents the pretax amounts related to derivative instruments designated as cash flow hedges affecting accumulated other comprehensive income (loss) and our condensed consolidated statements of operations for the nine months ended September 30, 2021 and 2020 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | Foreign Exchange Forward Contracts | | Commodity Swap Contracts | | Total | Balance as of December 31, 2020 | | $ | (3,644) | | | $ | 1,472 | | | $ | (2,172) | | Amounts recognized in other comprehensive income (loss) | | 2,268 | | | 1,531 | | | 3,799 | | | | | | | | | Amounts reclassified to earnings impacting: | | | | | | | | | | | | | | Cost of sales | | 1,913 | | | (883) | | | 1,030 | | | | | | | | | | | | | | | | | | | | | | | Balance as of September 30, 2021 | | $ | 537 | | | $ | 2,120 | | | $ | 2,657 | | | | | | | | | Balance as of December 31, 2019 | | $ | (962) | | | $ | — | | | $ | (962) | | Amounts recognized in other comprehensive income (loss) | | (2,129) | | | (228) | | | (2,357) | | Amounts reclassified to earnings impacting: | | | | | | | | | | | | | | Cost of sales | | 647 | | | — | | | 647 | | | | | | | | | | | | | | | | | | | | | | | Balance as of September 30, 2020 | | $ | (2,444) | | | $ | (228) | | | $ | (2,672) | |
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Schedule of Derivative Instruments, Gain (Loss) [Table Text Block] |
The following table presents gains and losses related to derivative instruments not designated as hedges affecting our condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amount of Gain (Loss) Recognized in Income | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | Income Statement Line Item | | 2021 | | 2020 | | 2021 | | 2020 | Foreign exchange forward contracts | | Cost of sales | | $ | 103 | | | $ | (195) | | | $ | (174) | | | $ | (73) | | Foreign exchange forward contracts | | Foreign currency loss, net | | 1,802 | | | (2,598) | | | 10,821 | | | (2,405) | | Interest rate swap contracts | | Interest expense, net | | 96 | | | (5,878) | | | (595) | | | (7,259) | |
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Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] |
As of September 30, 2021 and December 31, 2020, the notional values associated with our foreign exchange forward contracts qualifying as cash flow hedges were as follows (notional amounts and U.S. dollar equivalents in millions): | | | | | | | | | | | | | | | | | September 30, 2021 | Currency | | Notional Amount | | USD Equivalent | U.S. dollar (1) | | $39.8 | | $39.8 | British pound | | GBP 10.6 | | $14.3 |
| | | | | | | | | | | | | | | | | December 31, 2020 | Currency | | Notional Amount | | USD Equivalent | U.S. dollar (1) | | $43.4 | | $43.4 |
—————————— (1)These derivative instruments represent hedges of outstanding payables denominated in U.S. dollars at certain of our foreign subsidiaries whose functional currencies are other than the U.S. dollar.
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Schedule of Notional Value of Foreign Exchange Forward Derivatives [Table Text Block] |
As of September 30, 2021 and December 31, 2020, the notional values of our foreign exchange forward contracts that do not qualify for hedge accounting were as follows (notional amounts and U.S. dollar equivalents in millions): | | | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | Transaction | | Currency | | Notional Amount | | USD Equivalent | Purchase | | Australian dollar | | AUD 3.2 | | $2.3 | | | | | | | | Purchase | | Brazilian real | | BRL 2.6 | | $0.5 | | | | | | | | | | | | | | | | | | | | | | Purchase | | Chilean peso | | CLP 985.0 | | $1.2 | Sell | | Chilean peso | | CLP 4,240.6 | | $5.3 | | | | | | | | | | | | | | | Purchase | | Euro | | €86.4 | | $100.6 | Sell | | Euro | | €32.6 | | $37.9 | Purchase | | British pound | | GBP 2.5 | | $3.4 | | | | | | | | | | | | | | | Sell | | Indian rupee | | INR 1,830.0 | | $24.7 | Purchase | | Japanese yen | | ¥151.8 | | $1.4 | Sell | | Japanese yen | | ¥27,325.6 | | $244.9 | Purchase | | Malaysian ringgit | | MYR 30.5 | | $7.3 | Sell | | Malaysian ringgit | | MYR 26.8 | | $6.4 | | | | | | | | Sell | | Mexican peso | | MXN 34.6 | | $1.7 | Purchase | | Singapore dollar | | SGD 5.5 | | $4.0 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | Transaction | | Currency | | Notional Amount | | USD Equivalent | Purchase | | Australian dollar | | AUD 3.2 | | $2.5 | Purchase | | Brazilian real | | BRL 2.6 | | $0.5 | Sell | | Canadian dollar | | CAD 8.9 | | $7.0 | Purchase | | Chilean peso | | CLP 2,006.0 | | $2.8 | Sell | | Chilean peso | | CLP 4,476.7 | | $6.3 | Purchase | | Euro | | €140.0 | | $172.1 | Sell | | Euro | | €63.6 | | $78.2 | Sell | | Indian rupee | | INR 619.2 | | $8.4 | Purchase | | Japanese yen | | ¥1,593.7 | | $15.5 | Sell | | Japanese yen | | ¥20,656.6 | | $200.5 | Purchase | | Malaysian ringgit | | MYR 69.3 | | $17.2 | Sell | | Malaysian ringgit | | MYR 24.9 | | $6.2 | Sell | | Mexican peso | | MXN 34.6 | | $1.7 | Purchase | | Singapore dollar | | SGD 2.9 | | $2.2 |
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