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Derivative Financial Instruments (Notes)
 3 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block] Derivatives and Hedging Activities
Hedge Accounting and Hedging Program

     The purposes of our cash flow hedging programs are to manage the foreign currency exchange rate risk on forecasted revenues and expenses denominated in currencies other than the functional currency of the operating unit, and to manage floating interest rate risk associated with future interest payments on the variable-rate term loans issued in January 2022. We do not issue derivatives for trading or speculative purposes.
    To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. The derivative instruments we utilize, including various foreign exchange contracts and interest rate swaps, are designated and qualify as cash flow hedges. Our derivative instruments are recorded at fair value on the condensed consolidated balance sheets and are classified based on the instrument's maturity date. We record gains or losses from changes in the fair values of the derivative instruments as a component of other comprehensive income (loss) and we reclassify those gains or losses into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. If the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related derivative instrument from accumulated other comprehensive loss into earnings immediately.

Foreign Currency Exchange Rate Risk

Foreign Exchange Forward Contracts

We enter into foreign exchange forward contracts to hedge a portion of our forecasted foreign currency-denominated revenues and expenses to minimize the effect of foreign exchange rate movements on the related cash flows. These contracts are agreements to buy or sell a quantity of a currency at a predetermined future date and at a predetermined exchange rate. Our foreign exchange forward contracts hedge exposures principally denominated in Mexican Pesos ("MXN"), Euros, Czech Koruna ("CZK"), Japanese Yen ("JPY"), Swedish Krona ("SEK"), Danish Krone ("DKK"), Chinese Renminbi ("CNH"), Canadian Dollar ("CAD"), U.S. Dollar ("USD") and Australian Dollar ("AUD") and have varying maturities with an average term of approximately eleven months. The total notional amount of these outstanding derivative contracts as of June 30, 2023 was $176.7 million, which included the notional equivalent of $45.9 million in MXN, $30.4 million in Euros, $8.6 million in CZK, $18.4 million in JPY, $7.9 million in CNH, $18.0 million in CAD, $13.2 million in AUD, $30.3 million in USD and $4.1 million in other foreign currencies, with terms currently through January 2025.

Cross-currency Par Forward Contracts

We have entered into cross-currency par forward contracts to hedge a portion of our Mexico forecasted expenses denominated in MXN. These contracts are agreements to exchange cash flows from one currency to another at specified intervals over the contract term with all exchanges occurring at the same predetermined rate. In November 2021, we entered into a one-year cross-currency par forward contract with a term from December 1, 2021 to December 1, 2022. The total notional amount of this outstanding derivative as of June 30, 2022 was approximately 208.2 million MXN. This derivative instrument matured in equal monthly amounts at a fixed forward rate of 21.60 MXN/USD.

Floating Interest Rate Risk

In November 2021, in anticipation of entering into the new senior secured credit facilities in January 2022, which includes a variable-rate term loan A and a variable-rate term loan B (see Note 17: Long-Term Debt), we entered into two forward-starting interest rate swaps. In February 2022, certain terms under the agreements were amended to reflect the transition from LIBOR to the Secured Overnight Financing Rate ("SOFR"), an alternative reference rate. Under the interest rate swap agreements, we exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. Effective March 30, 2022, the term loan A swap, as amended, has an initial notional amount of $300.0 million, reducing to $150.0 million evenly on a quarterly basis excluding its final maturity on March 30, 2027. We will pay a fixed rate of 1.32% and will receive the greater of 3-months USD SOFR or (0.15)%. Effective March 30, 2022, the term loan B swap, as amended, has an initial notional amount of $750.0 million, reducing to $46.9 million evenly on a quarterly basis excluding its final maturity on March 30, 2026. We will pay a fixed rate of 1.17% and will receive the greater of 3-months USD SOFR or 0.35%.

In June 2023, we entered into an additional interest rate swap that hedges both term loan A and term loan B interest payments. The total notional amount of the swap is $300 million. The hedge matures on June 30, 2028. We will pay a fixed rate of 3.88% and will receive 3-months USD SOFR.

These swaps effectively convert the relevant portion of the floating-rate term loans to fixed rates.
    
The following table presents the fair values of our derivative instruments included within the Condensed Consolidated Balance Sheets (in thousands):
Derivatives Designated as Cash Flow Hedging Instruments
Condensed Consolidated Balance Sheet LocationForeign Exchange ContractsInterest Rate SwapsGross Derivatives
As of June 30, 2023
Prepaid expenses and other current assets$11,533 $31,702 $43,235 
Other assets897 17,229 18,126 
Total assets$12,430 $48,931 $61,361 
Accrued liabilities$3,806 $— $3,806 
Other long-term liabilities105 — 105 
Total liabilities$3,911 $— $3,911 
As of December 31, 2022
Prepaid expenses and other current assets$4,860 $28,431 $33,291 
Other assets94 26,753 26,847 
Total assets$4,954 $55,184 $60,138 
Accrued liabilities$1,847 $— $1,847 
Other long-term liabilities167 — 167 
Total liabilities$2,014 $— $2,014 


We recognized the following gains on our derivative instruments designated as cash flow hedges in other comprehensive income before reclassifications to net loss (in thousands):

Gain Recognized in Other Comprehensive Income
Three months ended
June 30,		Six months ended
June 30,
2023202220232022
Derivatives designated as cash flow hedging instruments:
Foreign exchange contracts$6,051 $5,225 $8,503 $8,337 
Interest rate swaps11,324 9,146 8,740 39,197 
Total derivatives designated as cash flow hedging instruments$17,375 $14,371 $17,243 $47,534 

The following table presents the effects of our derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations (in thousands):
Gain (Loss) Reclassified From Accumulated Other Comprehensive Loss into Income
Three months ended
June 30,		Six months ended
June 30,
Location of Gain (Loss) Recognized in Income2023202220232022
Derivatives designated as cash flow hedging instruments:
Foreign exchange contractsTotal revenues$473 $1,813 $(1,448)$4,356 
Foreign exchange contractsCost of goods sold2,316 1,563 3,816 1,049 
Foreign exchange contractsOther expense, net(1)— — 229 — 
Foreign exchange contractsInterest expense(2)— 5 13 255 
Interest rate swapsInterest expense7,625 (1,524)14,993 (1,524)
Total derivatives designated as cash flow hedging instruments$10,414 $1,857 $17,603 $4,136 
_______________________________
(1)    Represents location of gain reclassified from accumulated other comprehensive loss into income as a result of ineffectiveness.
(2)    Represents location of gain reclassified from accumulated other comprehensive loss into income as a result of forecasted transactions no longer probable of occurring.
As of June 30, 2023, we expect an estimated $7.7 million in deferred gains on the outstanding foreign exchange contracts and an estimated $32.7 million in deferred gains on the interest rate swaps will be reclassified from accumulated other comprehensive loss to net income during the next 12 months concurrent with the underlying hedged transactions also being reported in net income.