DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 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 years ended December 31, 2022, 2021 and 2020, 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 December 31, 2022 have terms of three months 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 other (expense) income, net, in the 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 consolidated balance sheets consist of the following at:

December 31, 2022
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	$	15,883	$	398	Accounts receivable, net
Receive CAD/pay USD		34,467		106	Accounts receivable, net
Receive USD/pay MXN		12,430		88	Accounts receivable, net
Receive USD/pay GBP		43,551		118	Accounts receivable, net
Receive RSD/pay USD		3,513		112	Accounts receivable, net
Receive GBP/pay USD		34,716		100	Accounts receivable, net
Receive GBP/pay USD		4,321		31	Accounts receivable, net
Receive USD/pay COP		11,570		12	Accounts receivable, net
Liabilities:
Foreign currency exchange contracts:
Receive USD/pay CLP	$	43,071	$	(2,549)	Accrued liabilities
Receive USD/pay EUR		40,592		(1,377)	Accrued liabilities
Receive USD/pay CNY		12,460		(362)	Accrued liabilities
Receive USD/pay EUR		34,714		(295)	Accrued liabilities
Receive USD/pay NZD		4,093		(91)	Accrued liabilities
Receive USD/pay AUD		1,271		(23)	Accrued liabilities
Receive USD/pay ZAR		3,124		(1)	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 loss on derivative instruments in the consolidated statements of income was as follows:

		Amount of loss
		recognized in income on
		derivatives
Derivatives not designated as	Location of loss	Year ended
hedging instruments under	recognized in income on	December 31,		December 31,		December 31,
ASC 815	derivatives	2022		2021		2020
Foreign currency exchange contracts	Other (expense) income, net	$	6,893	$	5,445	$	3,317