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Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging ActivitiesWe 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, 2022, 2021, and 2020, amounts excluded from the assessment of effectiveness of our foreign currency forward contracts that are designated as cash flow hedges were not material. As of December 31, 2022, we estimate that $20.5 million of net gains will be reclassified from accumulated other comprehensive loss to earnings during the twelve-month period ending December 31, 2023.
As of December 31, 2022, 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)
37.0 EURDecember 28, 2022January 31, 2023Euro ("EUR") to USD1.07 USDNot designated
364.0 EURVarious from January 2021 to December 2022Various from January 2023 to December 2024EUR to USD1.11 USDCash flow hedge
402.0 CNYDecember 27, 2022January 31, 2023USD to Chinese Renminbi ("CNY")6.96 CNYNot designated
655.0 JPYDecember 28, 2022January 31, 2023USD to Japanese Yen ("JPY")133.01 JPYNot designated
18,304.3 KRWVarious from February 2021 to December 2022Various from January 2023 to November 2024USD to Korean Won ("KRW")1,228.41 KRWCash flow hedge
24.0 MYRDecember 27, 2022January 31, 2023USD to Malaysian Ringgit ("MYR")4.41 MYRNot designated
83.0 MXNDecember 28, 2022January 31, 2023USD to Mexican Peso ("MXN")19.53 MXNNot designated
3,431.8 MXNVarious from January 2021 to December 2022Various from January 2023 to December 2024USD to MXN22.19 MXNCash flow hedge
6.3 GBPDecember 28, 2022January 31, 2023British Pound Sterling ("GBP") to USD1.21 USDNot designated
58.9 GBPVarious from January 2021 to December 2022Various from January 2023 to December 2024GBP to USD1.26 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, 2022, we had the following outstanding commodity forward contracts, none of which were designated for hedge accounting treatment in accordance with FASB ASC Topic 815:
CommodityNotionalRemaining Contracted PeriodsWeighted-Average
Strike Price Per Unit
Silver972,101 troy oz.January 2023 to November 2024$23.24 
Gold7,894 troy oz.January 2023 to November 2024$1,861.63 
Nickel236,860 poundsJanuary 2023 to November 2024$10.88 
Aluminum4,310,163 poundsJanuary 2023 to November 2024$1.22 
Copper8,271,686 poundsJanuary 2023 to November 2024$4.07 
Platinum10,820 troy oz.January 2023 to November 2024$986.14 
Palladium1,355 troy oz.January 2023 to November 2024$2,215.19 
Financial Instrument Presentation
The following table presents the fair value of our derivative financial instruments and their classification in the consolidated balance sheets as of December 31, 2022 and 2021:
 Asset DerivativesLiability Derivatives
Balance Sheet
Location		As of December 31,Balance Sheet
Location		As of December 31,
 2022202120222021
Derivatives designated as hedging instruments:
Foreign currency forward contractsPrepaid expenses and other current assets$27,114 $20,562 Accrued expenses and other current liabilities$6,586 $1,981 
Foreign currency forward contractsOther assets3,763 4,391 Other long-term liabilities3,280 904 
Total$30,877 $24,953 $9,866 $2,885 
Derivatives not designated as hedging instruments:
Commodity forward contractsPrepaid expenses and other current assets$2,542 $2,583 Accrued expenses and other current liabilities$4,066 $3,422 
Commodity forward contractsOther assets1,639 396 Other long-term liabilities605 1,070 
Foreign currency forward contractsPrepaid expenses and other current assets249 159 Accrued expenses and other current liabilities— 188 
Total$4,430 $3,138 $4,671 $4,680 
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, 2022 and 2021:
Derivatives designated as hedging instruments Amount of Deferred Gain/(Loss) 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,
2022202120222021
Foreign currency forward contracts $39,173 $32,698 Net revenue$46,183 $(9,281)
Foreign currency forward contracts$11,982 $(601)Cost of revenue$6,543 $9,707 
Derivatives not designated as hedging instruments Amount of (Loss)/Gain Recognized in Net IncomeLocation of (Loss)/Gain Recognized in Net Income
For the year ended December 31,
20222021
Commodity forward contracts$(3,350)$(2,967)Other, net
Foreign currency forward contracts$4,324 $(7,553)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, 2022, the termination value of outstanding derivatives in a liability position, excluding any adjustment for non-performance risk, was $14.8 million. As of December 31, 2022, 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.