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Derivative Instruments, Hedging Activities and Fair Value
 6 Months Ended
Jun. 30, 2023
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, 2023    
Asset derivatives (Level 2):
Foreign currency exchange forward contractsOther current assets$34 $4,295 $4,329 
Interest rate swapsOther current assets3,110 — 3,110 
Total $3,144 $4,295 $7,439 
Liability derivatives (Level 2):
Foreign currency exchange forward contractsOther current liabilities$753 $2,964 $3,717 
Interest rate swapsOther liabilities710 — 710 
Total$1,463 $2,964 $4,427 
December 31, 2022    
Asset derivatives (Level 2):
Foreign currency exchange forward contractsOther current assets$1,042 $2,154 $3,196 
Total $1,042 $2,154 $3,196 
Liability derivatives (Level 2):
Foreign currency exchange forward contractsOther current liabilities$577 $4,796 $5,373 
Total$577 $4,796 $5,373 

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 $0.5 million and a net liability of $0.1 million at June 30, 2023 and December 31, 2022, respectively.
The effect of derivative instruments on the Company's Condensed Consolidated Statements of Comprehensive Income (Loss) was as follows:
Derivatives Designated as Hedging Instruments
Amount Recognized in
OCI on Derivatives		Amount Reclassified from
AOCI into Income - Effective Portion or Equity
Three Months EndedThree Months Ended
June 30June 30
(In thousands)2023202220232022
Foreign currency exchange forward contracts$(438)$957 $866 $(998)
Interest rate swaps6,152 — (617)1,061 
 $5,714 $957 $249 $63 
Amount Recognized in
OCI on Derivatives		Amount Reclassified from
AOCI into Income - Effective Portion or Equity
Six Months EndedSix Months Ended
June 30June 30
(In thousands)2023202220232022
Foreign currency exchange forward contracts$(1,121)$1,966 $1,277 $(1,586)
Interest rate swaps3,265 — (865)2,111 
 $2,144 $1,966 $412 $525 
The location and amount of gain (loss) recognized on the Company's Condensed Consolidated Statements of Operations was as follows:
Three Months Ended
June 30
20232022
(In thousands)Interest ExpenseIncome (Loss) from Discontinued BusinessesInterest ExpenseIncome (Loss) from Discontinued Businesses
Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded$(25,724)$7,556 $(16,692)$1,879 
Interest rate swaps:
Gain or (loss) reclassified from AOCI into income617 — (1,061)— 
Amount recognized in earnings due to ineffectiveness— — 720 — 
Foreign exchange contracts:
Gain or (loss) reclassified from AOCI into income— (866)— 998 

Six Months Ended
June 30
20232022
(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$(50,052)$8,175 $(31,784)$(37,218)
Interest rate swaps:
Gain or (loss) reclassified from AOCI into income865 — (2,111)— 
Amount recognized in earnings due to ineffectiveness— — 1,611 — 
Foreign exchange contracts:
Gain or (loss) reclassified from AOCI into income— (1,277)— 1,586 

Derivatives Not Designated as Hedging Instruments
 Location of Gain (Loss) Recognized in Income on Derivatives
Amount of Gain (Loss) Recognized in Income on Derivatives (a)
Three Months EndedSix Months Ended
June 30June 30
(In thousands)2023202220232022
Foreign currency exchange forward contractsCost of services and products sold$4,862 $18,234 $1,565 $22,072 
(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, 2023 and December 31, 2022, the notional amounts of foreign currency exchange forward contracts were $588.6 million and $573.8 million, respectively. These contracts are primarily denominated in British Pound Sterling and Euros and mature through 2025.
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 gains of $1.1 million and $1.5 million for the three months and six months ended ended June 30, 2023 and pre-tax net losses of $0.6 million and $1.2 million for the three months and six months ended ended June 30, 2022, 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.

The Company had a series of interest rate swaps that matured in 2022 and had 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 replaced the adjusted LIBOR rate in the interest calculation to 3.12% for 2022.

In the first quarter of 2023, the Company entered into a new series of interest rate swaps with a scheduled maturity of December 2025. The swaps have the effect of converting $300.0 million of the New Term Loan from a floating interest rate to a fixed interest rate and are classified as cash flow hedges. The fixed rates provided by these swaps, ranging from 4.17% to 4.21%, replace the adjusted SOFR rate in the interest calculation.

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, 2023 and December 31, 2022, the total fair value of long-term debt and current maturities (excluding deferred financing costs) was $1,337.2 million and $1,227.6 million, respectively, compared with a carrying value of $1,410.3 million and $1,364.2 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.