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Derivative Instruments, Hedging Activities and Fair Value
 6 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments, Hedging Activities and Fair Value Derivative Instruments, Hedging Activities and Fair Value
Derivative Instruments and Hedging Activities
The Company uses derivative instruments, including foreign currency exchange forward contracts and interest rate swaps to manage certain foreign currency and interest rate exposures.  Derivative instruments are viewed as risk management tools by the Company and are not used for trading or speculative purposes. All derivative instruments are recorded on the Company's Condensed Consolidated Balance Sheets at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information.  Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs, such as forward rates, interest rates, the Company’s credit risk and counterparties’ credit risks, and which minimize the use of unobservable inputs.  The Company is able to classify fair value balances based on the ability to observe those inputs.  Foreign currency exchange forward contracts and interest rate swaps are based upon pricing models using market-based inputs (Level 2).  Model inputs can be verified and valuation techniques do not involve significant management judgment.
The fair value of outstanding derivative contracts recorded as assets and liabilities on the Company's Condensed Consolidated Balance Sheets was as follows:
(In thousands)Balance Sheet LocationFair Value of Derivatives Designated as Hedging InstrumentsFair Value of Derivatives Not Designated as Hedging InstrumentsTotal Fair Value
June 30, 2022    
Asset derivatives (Level 2):
Foreign currency exchange forward contractsOther current assets$1,710 $16,075 $17,785 
Total $1,710 $16,075 $17,785 
Liability derivatives (Level 2):
Foreign currency exchange forward contractsOther current liabilities$465 $502 $967 
Interest rate swapsOther current liabilities423 — 423 
Total$888 $502 $1,390 
December 31, 2021    
Asset derivatives (Level 2):
Foreign currency exchange forward contractsOther current assets$719 $1,405 $2,124 
Total $719 $1,405 $2,124 
Liability derivatives (Level 2):
Foreign currency exchange forward contractsOther current liabilities$560 $2,905 $3,465 
Interest rate swapsOther current liabilities4,157 — 4,157 
Total$4,717 $2,905 $7,622 

All of the Company's derivatives are recorded on the Condensed Consolidated Balance Sheets at gross amounts and do not offset. All of the Company's interest rate swaps and certain foreign currency exchange forward contracts are transacted under ISDA documentation. Each ISDA master agreement permits the net settlement of amounts owed in the event of default. The Company's derivative assets and liabilities subject to enforceable master netting arrangements, if offset, would have resulted in a net asset of $2.2 million and $0.9 million at June 30, 2022 and December 31, 2021, respectively.
The effect of derivative instruments on the Company's Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income (Loss) was as follows:
Derivatives Designated as Hedging Instruments
Amount Recognized in
OCI on Derivatives		Location of Amount Reclassified from 
AOCI into Income 		Amount Reclassified from
AOCI into Income - Effective Portion or Equity
Three Months EndedThree Months Ended
June 30June 30
(In thousands)2022202120222021
Foreign currency exchange forward contracts$957 $(440)Income (loss) from discontinued businesses$(998)$3 
Interest rate swaps— (33)Interest expense1,061 862 
 $957 $(473) $63 $865 
Amount Recognized in
OCI on Derivatives		Location of Amount Reclassified from AOCI into Income Amount Reclassified from
AOCI into Income - Effective Portion or Equity
Six Months EndedSix Months Ended
June 30June 30
(In thousands)2022202120222021
Foreign currency exchange forward contracts$1,966 $(441)Income (loss) from discontinued businesses$(1,586)$(47)
Interest rate swaps— (14)Interest expense2,111 1,727 
 $1,966 $(455) $525 $1,680 
The location and amount of gain (loss) recognized on the Company's Condensed Consolidated Statements of Operations was as follows:
Three Months Ended
June 30
20222021
(in thousands)Interest ExpenseIncome (loss) from Discontinued BusinessesInterest ExpenseIncome (loss) from Discontinued Businesses
Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded$(16,692)$1,109 $(15,643)$4,848 
Interest rate swaps:
Gain or (loss) reclassified from AOCI into income(1,061)— (862)— 
Amount recognized in earnings due to ineffectiveness720 — — — 
Foreign exchange contracts:
Gain or (loss) reclassified from AOCI into income998 — (3)
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value(23)— 9 
Amount excluded from the effectiveness testing recognized in earnings based on an amortization approach(3)— 1 

Six Months Ended
June 30
20222021
(in thousands)Interest ExpenseLoss from Discontinued BusinessesInterest ExpenseIncome From Discontinued Operations
Total amounts in the Condensed Consolidated Statement of Operations in which the effects of cash flow hedges are recorded$(31,784)$(31,397)$(31,899)$6,548 
Interest rate swaps:
Gain or (loss) reclassified from AOCI into income(2,111)— (1,727)— 
Amount recognized in earnings due to ineffectiveness1,611 — — — 
Foreign exchange contracts:
Gain or (loss) reclassified from AOCI into income— 1,586 — 47 
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value— (64)— 38 
Amount excluded from the effectiveness testing recognized in earnings based on an amortization approach— (5)— — 

Derivatives Not Designated as Hedging Instruments
 Location of Gain (Loss) Recognized in Income on DerivativesAmount of Gain (Loss) Recognized in Income on Derivatives (a)
Three Months EndedSix Months Ended
June 30June 30
(In thousands)2022202120222021
Foreign currency exchange forward contractsCost of services and products sold$18,234 $(740)$22,072 $4,004 
(a)      These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency         
exposures.

Foreign Currency Exchange Forward Contracts
The Company conducts business in multiple currencies and, accordingly, is subject to the inherent risks associated with foreign exchange rate movements.  Foreign currency-denominated assets and liabilities are translated into U.S. dollars at the exchange rates existing at the respective consolidated balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. 
The Company uses derivative instruments to hedge cash flows related to foreign currency fluctuations.  Foreign currency exchange forward contracts outstanding are part of a worldwide program to minimize foreign currency exchange operating income and balance sheet exposure by offsetting foreign currency exposures of certain future payments between the Company and various subsidiaries, suppliers or customers.  The unsecured contracts are with major financial institutions. The Company may be exposed to credit loss in the event of non-performance by the contract counterparties. The Company evaluates the creditworthiness of the counterparties and does not expect default by them.  Foreign currency exchange forward contracts are used to hedge commitments, such as foreign currency debt, firm purchase commitments and foreign currency cash flows for certain export sales transactions.
Changes in the fair value of derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings, along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments may be accounted for as cash flow hedges, as deemed appropriate, if the criteria for hedge accounting are met.  Gains and losses on derivatives designated as cash flow hedges are deferred in AOCI, a separate component of equity, and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The ineffective portion of all hedges, if any, is recognized currently in earnings.
The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third-party foreign currency exposures. At June 30, 2022 and December 31, 2021 the notional amounts of foreign currency exchange forward contracts were $450.9 million and $425.8 million, respectively. These contracts are primarily denominated in British Pound Sterling and Euros and mature through September 2023.
In addition to foreign currency exchange forward contracts, the Company designates certain loans as hedges of net investments in international subsidiaries. The Company recorded pre-tax net losses of $0.6 million and $1.2 million for the three and six months ended June 30, 2022, respectively, and pre-tax net gains of $0.3 million and $3.6 million for the three and six months ended June 30, 2021, respectively, in AOCI.

Interest Rate Swaps
The Company uses interest rate swaps in conjunction with certain variable rate debt issuances in order to secure a fixed interest rate. Changes in the fair value attributed to the effect of the swaps’ interest spread and changes in the credit worthiness of the counter-parties are recorded in AOCI and are reclassified into income as interest payments are made.

At June 30, 2022, the Company had a series of interest rate swaps that are in effect through 2022 and have the effect of converting $200.0 million of the Term Loan Facility from floating-rate to fixed-rate. The fixed rates provided by the swaps replace the adjusted LIBOR rate in the interest calculation to 3.12% for 2022. In the fourth quarter of 2021, the interest rate swaps were deemed ineffective and, thus, the subsequent changes in fair value continue to be recorded in earnings in the current period. The amounts previously recorded in AOCI will continue to be amortized into earnings over the remaining maturity of the interest rate swap.

Fair Value of Other Financial Instruments
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and short-term borrowings approximate fair value due to the short-term maturities of these assets and liabilities. At June 30, 2022 and December 31, 2021, the total fair value of long-term debt and current maturities (excluding deferred financing costs) was $1,202.8 million and $1,394.2 million, respectively, compared with a carrying value of $1,337.4 million and $1,387.9 million, respectively.  Fair values for debt are based on pricing models using market-based inputs (Level 2) for similar issues or on the current rates offered to the Company for debt of the same remaining maturities.