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Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
We utilize derivative instruments that are designated and qualify as hedges of our exposure to variability in expected future cash flows. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on these hedging instruments with the earnings effect of the hedged forecasted transactions. We may enter into other derivative contracts that are intended to economically hedge certain risks, even though we elect not to apply hedge accounting under FASB ASC Topic 815. Derivative financial instruments not designated as hedges are used to manage our exposure to certain risks, not for trading or speculative purposes. Refer to Note 2, "Significant Accounting Policies," for additional information related to the valuation techniques and accounting policies regarding derivative instruments and hedging activities.
Foreign Currency Risk
We are exposed to fluctuations in the values of certain foreign currencies relative to our functional currency, the USD. We enter into forward contracts to manage this exposure. We currently have outstanding foreign currency forward contracts that qualify as cash flow hedges intended to offset the effect of exchange rate fluctuations on forecasted sales and certain
manufacturing costs. We also have outstanding foreign currency forward contracts that are intended to preserve the economic value of foreign currency denominated monetary assets and liabilities, which are not designated for hedge accounting treatment in accordance with FASB ASC Topic 815.
For each of the years ended December 31, 2020, 2019, and 2018, amounts excluded from the assessment of effectiveness of our foreign currency forward contracts were not material. As of December 31, 2020, we estimate that $9.7 million of net losses will be reclassified from accumulated other comprehensive loss to earnings during the twelve month period ending December 31, 2021.
As of December 31, 2020, we had the following outstanding foreign currency forward contracts:
Notional
(in millions)		Effective Date(s)Maturity Date(s)Index (Exchange Rates)Weighted- Average Strike Rate
Hedge Designation (1)
22.0 EURDecember 29, 2020January 29, 2021Euro ("EUR") to USD1.23 USDNot designated
317.3 EURVarious from February 2019 to December 2020Various from January 2021 to December 2022EUR to USD1.17 USDCash flow hedge
584.0 CNYDecember 28, 2020January 29, 2021USD to Chinese Renminbi ("CNY")6.57 CNYNot designated
500.0 CNYNovember 5, 2020Various from January to December 2021USD to CNY6.74 CNYCash flow hedge
897.0 JPYDecember 28, 2020January 29, 2021USD to Japanese Yen ("JPY")103.53 JPYNot designated
17,321.7 KRWVarious from March 2019 to December 2020Various from January 2021 to December 2022USD to Korean Won ("KRW")1,167.03 KRWCash flow hedge
22.0 MYRDecember 30, 2020January 29, 2021USD to Malaysian Ringgit ("MYR")4.06 MYRNot designated
284.0 MXNDecember 29, 2020January 29, 2021USD to Mexican Peso ("MXN")19.95 MXNNot designated
2,963.5 MXNVarious from February 2019 to December 2020Various from January 2021 to December 2022USD to MXN22.56 MXNCash flow hedge
6.0 GBPDecember 29, 2020January 29, 2021British Pound Sterling ("GBP") to USD1.35 USDNot designated
48.9 GBPVarious from February 2019 to December 2020Various from January 2021 to December 2022GBP to USD1.29 USDCash flow hedge
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(1)    Derivative financial instruments not designated as hedges are used to manage our exposure to currency exchange rate risk. They are intended to preserve the economic value, and they are not used for trading or speculative purposes.
Commodity Risk
We enter into commodity forward contracts in order to limit our exposure to variability in raw material costs that is caused by movements in the price of underlying metals. The terms of these forward contracts fix the price at a future date for various notional amounts associated with these commodities. These instruments are not designated for hedge accounting treatment in accordance with FASB ASC Topic 815.
As of December 31, 2020, we had the following outstanding commodity forward contracts:
CommodityNotionalRemaining Contracted PeriodsWeighted-Average
Strike Price Per Unit
Silver742,939 troy oz.January 2021- December 2022$20.54 
Gold7,326 troy oz.January 2021-December 2022$1,733.35 
Nickel165,037 poundsJanuary 2021-December 2022$6.62 
Aluminum2,224,837 poundsJanuary 2021-December 2022$0.86 
Copper1,803,323 poundsJanuary 2021-December 2022$2.83 
Platinum7,440 troy oz.January 2021-December 2022$911.09 
Palladium831 troy oz.January 2021-December 2022$1,988.33 
Financial Instrument Presentation
The following table presents the fair values of our derivative financial instruments and their classification in the consolidated balance sheets as of December 31, 2020 and 2019:
 Asset DerivativesLiability Derivatives
Balance Sheet
Location		As of December 31,Balance Sheet
Location		As of December 31,
 2020201920202019
Derivatives designated as hedging instruments:
Foreign currency forward contractsPrepaid expenses and other current assets$11,281 $20,957 Accrued expenses and other current liabilities$18,834 $1,055 
Foreign currency forward contractsOther assets4,728 2,530 Other long-term liabilities5,182 428 
Total$16,009 $23,487 $24,016 $1,483 
Derivatives not designated as hedging instruments:
Commodity forward contractsPrepaid expenses and other current assets$7,598 $3,069 Accrued expenses and other current liabilities$149 $394 
Commodity forward contractsOther assets1,304 554 Other long-term liabilities161 68 
Foreign currency forward contractsPrepaid expenses and other current assets154 74 Accrued expenses and other current liabilities644 476 
Total$9,056 $3,697 $954 $938 
These fair value measurements are all categorized within Level 2 of the fair value hierarchy. Refer to Note 18, "Fair Value Measures," for additional information related to the categorization of these fair value measurements within the fair value hierarchy.
The following tables present the effect of our derivative financial instruments on the consolidated statements of operations and the consolidated statements of comprehensive income for the years ended December 31, 2020 and 2019:
Derivatives designated as hedging instruments Amount of Deferred (Loss)/Gain Recognized in Other Comprehensive (Loss)/IncomeLocation of Net Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Net IncomeAmount of Net Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income
For the year ended December 31,For the year ended December 31,
2020201920202019
Foreign currency forward contracts $(25,866)$23,881 Net revenue$10,785 $26,180 
Foreign currency forward contracts$2,140 $14,512 Cost of revenue$(3,397)$2,397 
Derivatives not designated as hedging instruments Amount of Gain/(Loss) Recognized in Net IncomeLocation of Gain/(Loss) Recognized in Net Income
For the year ended December 31,
20202019
Commodity forward contracts$10,027 $4,888 Other, net
Foreign currency forward contracts$(6,762)$2,225 Other, net
Credit risk related contingent features
We have agreements with our derivative counterparties that contain a provision whereby if we default on our indebtedness and repayment of the indebtedness has been accelerated by the lender, then we could also be declared in default on our derivative obligations.
As of December 31, 2020, the termination value of outstanding derivatives in a liability position, excluding any adjustment for non-performance risk, was $25.1 million. As of December 31, 2020, we have not posted any cash collateral related to these agreements. If we breach any of the default provisions on any of our indebtedness as described above, we could be required to settle our obligations under the derivative agreements at their termination values.