Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Company's Outstanding Derivatives

As of March 31, 2022, the Company had the following outstanding derivative that was not designated as a hedge in qualifying hedging relationships:

Product	Number of instruments	Effective Date	Maturity Date	Notional
Interest Rate Swap	1	June 30, 2021	June 30, 2022	$306.1 million USD

Summary of Fair Value of Derivative Financial Instruments

All financial derivative instruments are carried at their fair value on the balance sheet. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of December 31, 2021 and March 31, 2022.

	Liability Derivatives
(in thousands)	As of December 31, 2021			As of March 31, 2022
Derivatives not designated as hedging instruments:
Interest rate swaps	Other current liabilities	$	4,102	Other current liabilities	$	1,639
Total interest rate swaps		$	4,102		$	1,639

Schedule of Derivative Instruments, Accumulated Other Comprehensive Income

The tables below present the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income for the three months ended March 31, 2021 and 2022:

	Three Months Ended March 31,					Three Months Ended March 31,
(in thousands)	2021		2022			2021		2022
Derivatives in Hedging Relationships	Amount of Loss Recognized in OCI on Derivative (Included Component)				Location of Gain Reclassified from Accumulated OCI into Income	Amount of Gain Reclassified from Accumulated OCI into Income (Included Component)
					Cost of revenues	$	32	$	—
Foreign exchange contracts	$	(32)	$	—	Selling general and administrative	57		—
Total	$	(32)	$	—		$	89	$	—

	Three Months Ended March 31,					Three Months Ended March 31,
(in thousands)	2021		2022			2021		2022
Derivatives in Hedging Relationships	Amount of Gain Recognized in OCI on Derivative (Excluded Component)				Location of Gain Reclassified from Accumulated OCI into Income	Amount of Gain Reclassified from Accumulated OCI into Income (Excluded Component)
					Cost of revenues	$	44	$	—
Foreign exchange contracts	$	108	$	—	Selling general and administrative	77		—
Total	$	108	$	—		$	121	$	—

Summary of Financial Derivative Instruments on Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

The tables below present the effect of the Company’s financial derivative instruments on the unaudited condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2021 and 2022:

	Three Months Ended March 31,
(in thousands)	2021				2022
	Selling General, and Administrative		Cost of Revenues		Selling General, and Administrative		Cost of Revenues
Total amounts of income and expense line items in which the effects of fair value or cash flow hedges are recorded	$	29,606	$	67,579	$	42,333	$	100,956
Gain on cash flow hedging relationships
Foreign exchange contracts:
Amount of gain reclassified from accumulated other comprehensive income into income	57		32		—		—
Amount excluded from effectiveness testing recognized in earnings	77		44		—		—

Summary of Derivative Financial Instruments that are not Designated as Hedging Instruments

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments in the unaudited condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2021 and 2022:

		Three Months Ended March 31,
(in thousands)		2021		2022
Derivatives Not Designated as Hedging Instruments
Interest rate swaps	Gain on interest rate swaps	$	(46)	$	(328)
Foreign exchange contracts	Selling general and administrative	41		—
Foreign exchange contracts	Cost of revenues	23		—
Total		$	18	$	(328)