DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Sep. 30, 2022

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to foreign currency exchange rate risks related primarily to its foreign business operations. During the nine-months ended September 30, 2022 and the year-ended December 31, 2021, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries’ non-functional currency denominated assets and liabilities. All foreign currency exchange contracts of the Company that were outstanding as of September 30, 2022 have terms of one month or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company has not designated its foreign currency exchange contracts as hedge transactions under ASC 815, “Derivatives and Hedging”. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income (expense), net, in the condensed consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item.

The notional amount and fair value of all outstanding foreign currency derivative instruments in the Company’s condensed consolidated balance sheets consist of the following at:

September 30, 2022
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive USD/pay COP	$	11,264	$	298	Accounts receivable, net
Receive USD/pay CLP		42,139		250	Accounts receivable, net
Receive USD/pay NZD		3,614		81	Accounts receivable, net
Receive USD/pay ZAR		3,172		41	Accounts receivable, net
Receive RSD/pay USD		1,809		16	Accounts receivable, net
Receive USD/pay AUD		520		8	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	12,492	$	(308)	Accrued liabilities
Receive CAD/pay USD		20,757		(277)	Accrued liabilities
Receive USD/pay CNY		11,877		(141)	Accrued liabilities
Receive USD/pay EUR		16,703		(82)	Accrued liabilities
Receive SGD/pay USD		16,969		(47)	Accrued liabilities
Receive USD/pay MXN		20,673		(34)	Accrued liabilities
Receive USD/pay DKK		1,893		(9)	Accrued liabilities

December 31, 2021
Derivatives not designated as
hedging instruments under	Notional		Fair
ASC 815	Amount		Value		Balance Sheet Location
Assets:
Foreign currency exchange contracts:
Receive SGD/pay USD	$	16,544	$	297	Accounts receivable, net
Receive USD/pay COP		9,754		296	Accounts receivable, net
Receive RSD/pay USD		9,837		46	Accounts receivable, net
Receive USD/pay RUB		7,175		15	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay GBP	$	29,929	$	(666)	Accrued liabilities
Receive USD/pay AUD		2,602		(88)	Accrued liabilities
Receive USD/pay CNY		12,230		(74)	Accrued liabilities
Receive USD/pay NZD		2,693		(45)	Accrued liabilities
Receive USD/pay EUR		3,045		(29)	Accrued liabilities
Receive USD/pay ZAR		4,140		(21)	Accrued liabilities
Receive USD/pay DKK		1,461		(9)	Accrued liabilities

The net gains (losses) on derivative instruments in the condensed consolidated statements of income were as follows:

		Amount of gain (loss)
		recognized in income on
		derivatives
		Three-months ended
Derivatives not designated as	Location of gain (loss)
hedging instruments under	recognized in income on	September 30,		September 30,
ASC 815	derivatives	2022		2021
Foreign currency exchange contracts	Interest and other income (expense), net	$	4,631	$	(308)

		Amount of gain (loss)
		recognized in income on
		derivatives
		Nine-months ended
Derivatives not designated as	Location of gain (loss)
hedging instruments under	recognized in income on	September 30,		September 30,
ASC 815	derivatives	2022		2021
Foreign currency exchange contracts	Interest and other income (expense), net	$	1,355	$	(5,706)