Derivatives and Hedge Accounting (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Foreign Currency Exchange Contracts

The following table sets forth the fair value of the foreign currency forward contracts and interest rate swaps and their location on the consolidated balance sheets:

	Derivatives in cash flow hedging relationships				Derivatives not designated as hedging instruments
	As of				As of
Derivative financial instruments	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Other current assets	$	995	$	8,669	$	367	$	13
Other assets	$	219	$	6,307	$	—	$	—
Accrued expenses and other current liabilities	$	11,752	$	1,324	$	145	$	528
Other non-current liabilities	$	8,114	$	1,785	$	—	$	—

Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income

The following tables set forth the effect of foreign currency forward contracts and interest rate swaps on AOCI and the unaudited consolidated statements of income:

	Three months ended September 30,				Nine months ended September 30,
Derivative financial instruments:	2022		2021		2022		2021
Unrealized gain/(loss) recognized in AOCI
Derivatives in cash flow hedging relationships	$	(13,489)	$	261	$	(28,638)	$	(42)
Loss recognized in unaudited consolidated statements of income
Derivatives not designated as hedging instruments	$	(4,889)	$	(464)	$	(11,245)	$	(1,054)

Location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments
	Three months ended September 30,
	2022				2021
	As per unaudited consolidated statements of income		Loss on derivative financial instruments		As per unaudited consolidated statements of income		Gain/(loss) on derivative financial instruments
Cash flow hedging relationships
Location in unaudited consolidated statements of income where gain was reclassified from AOCI
Cost of revenues	$	230,462	$	(1,381)	$	177,743	$	1,801
General and administrative expenses	$	42,519	(109)		$	36,167	223
Selling and marketing expenses	$	23,879	(6)		$	21,672	11
Depreciation and amortization expense	$	14,380	(71)		$	12,305	115
Interest expense	$	2,442	—		$	1,810	—
Total before tax			(1,567)				2,150
Income tax effects on above			133				(370)
Net of tax			$	(1,434)			$	1,780
Derivatives not designated as hedging instruments
Location in unaudited consolidated statements of income where gain/(loss) was recognized
Foreign exchange gain, net	$	1,504	$	(4,889)	$	1,171	$	(464)
	$	1,504	$	(4,889)	$	1,171	$	(464)

Location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments
	Nine months ended September 30,
	2022				2021
	As per unaudited consolidated statements of income		Gain/(loss) on derivative financial instruments		As per unaudited consolidated statements of income		Gain/(loss) on derivative financial instruments
Cash flow hedging relationships
Location in unaudited consolidated statements of income where gain was reclassified from AOCI
Cost of revenues	$	659,185	$	1,396	$	507,265	$	6,643
General and administrative expenses	$	122,898	366		$	103,369	769
Selling and marketing expenses	$	72,034	23		$	59,631	39
Depreciation and amortization expense	$	42,057	96		$	36,716	394
Interest expense	$	4,820	—		$	6,804	—
Total before tax			1,881				7,845
Income tax effects on above			(802)				(1,186)
Net of tax			$	1,079			$	6,659
Derivatives not designated as hedging instruments
Location in unaudited consolidated statements of income where gain/(loss) was recognized
Foreign exchange gain, net	$	4,683	$	(11,245)	$	2,958	$	(1,054)
	$	4,683	$	(11,245)	$	2,958	$	(1,054)

Summary of Effect of Net Investment Hedges on Accumulated Other Comprehensive Loss

Effect of net investment hedges on accumulated other comprehensive income/(loss):

	Three months ended September 30,				Nine months ended September 30,
	Amount of loss recognized in AOCI				Amount of loss recognized in AOCI
Net investment hedging relationships	2022		2021		2022		2021
Foreign currency forward contracts	$	—	$	—	$	—	$	1,134