Derivative Financial Instruments

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 18 – Derivative Financial Instruments

We use derivative instruments to manage risks related to foreign currencies, interest rates and the net investment risk in our foreign subsidiaries. Our objectives for holding derivatives include reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible. Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment.

Hedges of Foreign Currency Risk

We are exposed to fluctuations in various foreign currencies against our different functional currencies. We use foreign currency forward agreements to manage this exposure. We use foreign currency forward agreements to manage this exposure. At December 31, 2023 and December 31, 2022, we had $230.4 million and $183.1 million, respectively, of outstanding foreign currency forward agreements that are intended to preserve the economic value of foreign currency denominated monetary assets and liabilities; these instruments are not designated for hedge accounting treatment in accordance with Accounting Standards Codification ("ASC") No. 815.

Hedges of Interest Rate and Net Investment Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps, including interest rate collars, as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company makes use of cross currency swaps to decrease the foreign exchange risk inherent in the Company’s investment in some of its foreign subsidiaries.

The table below sets forth the number of instruments and the notional amounts of the Company's cross currency swaps at December 31, 2023 and December 31, 2022:


	Number of Instruments				Notional Amount
	2023		2022		2023		2022
Cross currency swaps		2		2		160,000		160,000

The table below sets forth the fair value of the Company’s interest rate related derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022:


	Fair Value
	Other Assets				Other Liabilities
	2023		2022		2023		2022
Cross currency swaps	$	-	$	1,427	$	6,936	$	6,314
Foreign-currency forward contracts		-		-		10,202		-

The tables below sets forth the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the twelve months ended December 31 2023, 2022 and 2021:


Derivative Instruments	Amount of Gain or (Loss) Recognized in OCI on Derivative								Location of Gain or (Loss) Reclassified from OCI into	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Net Income							Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion Excluded from	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Designated as	December 31,								Accumulated	December 31,							Effectiveness	December 31,
Hedging Instruments	2023			2022		2021			Income	2023		2022		2021			Testing)	2023		2022		2021
Interest rate swaps and collars	$	-		$	-	$	(13	)	Interest expense	$	-	$	-	$	(555	)	N/A	$	-	$	-	$	-
Cross currency swaps		(1,442	)		5,383		989		N/A		-		-		-		Interest income		1,653		2,308		2,469
Foreign-currency forward contracts		(10,202	)		-		-		N/A		-		-		-		Interest income		4,304		-		-


	Amount of Gain or (Loss) Recognized in Net Income
	December 31,
Derivative Instruments Not Designated as Hedging Instruments	2023			2022			2021		Location of Gain or (Loss) Recognized in Net Income
Foreign currency forward contracts	$	(5,364	)	$	(21,188	)	$	3,925	Foreign currency loss, net

We estimate that none of the net derivative losses included in accumulated other comprehensive income (“AOCI”) as of December 31, 2023, will be reclassified into earnings within the following 12 months. No gains or losses were reclassified from AOCI into earnings as a result of forecasted transactions that failed to occur during fiscal year 2023. As of December 31, 2023 and 2022, the Company had not posted any collateral related to these agreements.