DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

The following table contains information on the outstanding interest rate swaps as of September 30, 2023:

Outstanding Interest Rate Swaps (a)
Date Entered Into	Term	Notional Amount	Related Debt Facility	Fixed Rate of Swap		Bank Margin on Debt (b)		Total Effective Interest Rate (c)
August 2015	9 years	$170,000	Term Credit Agreement	2.10	%	1.70	%	3.80	%
August 2015	9 years	180,000	Term Credit Agreement	2.26	%	1.70	%	3.96	%
April 2016	10 years	100,000	Incremental Term Loan	1.50	%	1.75	%	3.25	%
April 2016	10 years	100,000	Incremental Term Loan	1.51	%	1.75	%	3.26	%
May 2021	7 years	200,000	2021 Incremental Term Loan Facility	0.67	%	1.65	%	2.32	%
December 2022	5 years	100,000	2022 Incremental Term Loan Facility	3.72	%	1.70	%	5.42	%

(a)All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.

(b)Includes the SOFR Credit Spread Adjustment component of 0.1%.

(c)Rate is before estimated patronage payments.

The following table contains information on the outstanding forward-starting interest rate swaps as of September 30, 2023:

Outstanding Forward-Starting Interest Rate Swaps (a)
Date Entered Into	Term	Notional Amount	Fixed Rate of Swap		Related Debt Facility	Forward Date	Maximum Period Ending for Forecasted Issuance Date
April 2020	4 years	$100,000	0.78	%	Term Credit Agreement	August 2024	N/A
May 2020	4 years	50,000	0.64	%	Term Credit Agreement	August 2024	N/A
May 2023	4 years	50,000	3.29	%	Term Credit Agreement	August 2024	N/A

(a)All forward-starting interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables demonstrate the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2023 and 2022:

		Three Months Ended September 30,
	Income Statement Location	2023	2022
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive income (loss)	$1,752	($4,464)
	Other operating (expense) income, net	(1,796)	(2,669)
Foreign currency option contracts	Other comprehensive income (loss)	(26)	(1,754)
	Other operating (expense) income, net	(196)	—
Interest rate products	Other comprehensive income (loss)	12,381	26,607
	Interest expense, net	(4,810)	(62)

		Nine Months Ended September 30,
	Income Statement Location	2023	2022
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive income (loss)	$5,753	($15,373)
	Other operating (expense) income, net	(5,801)	(2,598)
Foreign currency option contracts	Other comprehensive income (loss)	(858)	(2,304)
	Other operating (expense) income, net	(244)	—
Interest rate products	Other comprehensive income (loss)	20,416	76,372
	Interest expense, net	(12,587)	4,555

The following table contains details of the expected reclassified amounts into earnings:

	Amount expected to be reclassified into earnings in next 12 months
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	($2,763)
Foreign currency option contracts	(279)
Interest rate products (a)	27,734
Total estimated gain on derivatives contracts	$24,692

(a)    These reclassified amounts are expected to fully offset variable interest rate payments made to debt holders, resulting in no net impact on our earnings or cash flows.

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Notional Amount
	September 30, 2023	December 31, 2022
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	$127,200	$138,250
Foreign currency option contracts	86,000	78,000
Interest rate swaps	850,000	850,000
Forward-starting interest rate swaps	200,000	150,000

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at September 30, 2023 and December 31, 2022. Changes in balances of derivative financial instruments are recorded as operating activities in the Consolidated Statements of Cash Flows:

	Location on Balance Sheet	Fair Value Assets / (Liabilities) (a)
		September 30, 2023	December 31, 2022
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other current assets	$63	$25
	Other assets	391	1,303
	Other current liabilities	(3,900)	(5,457)
	Other non-current liabilities	(1,139)	(410)
Foreign currency option contracts	Other current assets	77	66
	Other assets	1,032	2,131
	Other current liabilities	(464)	(347)
	Other non-current liabilities	(1,179)	(1,281)
Interest rate swaps	Other assets	62,520	60,843
	Other non-current liabilities	—	(51)
Forward-starting interest rate swaps	Other assets	17,501	11,939
Total derivative contracts:
Other current assets		$140	$91
Other assets		81,444	76,216
Total derivative assets		$81,584	$76,307
Other current liabilities		(4,364)	(5,804)
Other non-current liabilities		(2,318)	(1,742)
Total derivative liabilities		($6,682)	($7,546)

(a)    See Note 8 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy.