XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.2.2
Derivative Financial Instruments
9 Months Ended
Sep. 30, 2022
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

4. Derivative Financial Instruments

From time to time, we enter into derivative instruments such as foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities, and interest rate cap contracts, to minimize our exposure to interest rate movements on our variable rate debts. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or other liabilities and accrued expenses on the condensed consolidated balance sheets. We do not designate such instruments as hedges for accounting purposes; accordingly, changes in the value of these contracts are recognized in each reporting period in other (expense) income, net in the condensed consolidated statements of operations. We do not enter into derivative instruments for trading purposes.

The foreign currency forward contracts generally mature within two to four months. The notional principal amount of outstanding foreign exchange forward contracts was $32.4 million and $48.6 million as of September 30, 2022 and December 31, 2021, respectively, none of which have been designated as hedging instruments during the periods presented. Total fair value gains (losses) recognized in other (expense) income, net in relation to these derivative instruments was $1.5 million and $0.4 million for the three months ended September 30, 2022 and 2021, respectively, and was $4.1 million and $0.5 million for the nine months ended September 30, 2022 and 2021, respectively.