DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table contains information on the outstanding interest rate swaps as of September 30, 2024:


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)
April 2016	10 years	100,000	2016 Incremental Term Loan	1.50	%	1.75	%	3.25	%
April 2016	10 years	100,000	2016 Incremental Term Loan	1.51	%	1.75	%	3.26	%
May 2021 (d)	7 years	200,000	2021 Incremental Term Loan	0.67	%	1.65	%	2.32	%
December 2022	5 years	100,000	2022 Incremental Term Loan	3.72	%	1.70	%	5.42	%
April 2020 (e)	4 years	100,000	2015 Term Loan	0.78	%	1.60	%	2.38	%
May 2020 (e)	4 years	50,000	2015 Term Loan	0.64	%	1.60	%	2.24	%
May 2023 (e)	4 years	50,000	2015 Term Loan	3.29	%	1.60	%	4.89	%

(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.

(d)Matured into an active interest rate swap on February 1, 2022.

(e)On August 1, 2024, our three forward-starting interest rate swaps with a total notional amount of $200 million matured into active interest rate swaps. See Note 6 — Debt for additional information.

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 (Loss) for the three and nine months ended September 30, 2024 and 2023:


		Three Months Ended September 30,
	Income Statement Location	2024	2023
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive income (loss)	$5,758	$1,752
	Other operating expense, net	349	(1,796)
Foreign currency option contracts	Other comprehensive income (loss)	2,143	(26)
	Other operating expense, net	5	(196)
Interest rate products	Other comprehensive income (loss)	(14,949)	12,381
	Interest expense, net	(6,822)	(4,810)



		Nine Months Ended September 30,
	Income Statement Location	2024	2023
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive income (loss)	$1,903	$5,753
	Other operating expense, net	1,742	(5,801)
Foreign currency option contracts	Other comprehensive income (loss)	1,123	(858)
	Other operating expense, net	13	(244)
Interest rate products	Other comprehensive income (loss)	5,273	20,416
	Interest expense, net	(21,379)	(12,587)

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			$2,169
Foreign currency option contracts			781
Interest rate products (a)			14,998
Total estimated net gain on derivatives contracts			$17,948

(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, 2024	December 31, 2023
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	$122,900	$122,700
Foreign currency option contracts	126,000	98,000
Interest rate swaps	700,000	850,000

Forward-starting interest rate swaps	—	200,000

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, 2024 and December 31, 2023. 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, 2024	December 31, 2023
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other current assets	$3,012	$1,175
	Other assets	3,549	2,405
	Other current liabilities	—	(664)

Foreign currency option contracts	Other current assets	1,193	342
	Other assets	2,472	2,158
	Other current liabilities	(108)	(139)
	Other non-current liabilities	(850)	(789)
Interest rate swaps	Other current assets	—	5,742
	Other assets	40,737	37,983
	Other non-current liabilities	(1,423)	(546)
Forward-starting interest rate swaps	Other assets	—	12,790
	Other non-current liabilities	—	(8)
















Total derivative contracts:
Other current assets		$4,205	$7,259
Other assets		46,758	55,336
Total derivative assets		$50,963	$62,595

Other current liabilities		(108)	(803)
Other non-current liabilities		(2,273)	(1,343)
Total derivative liabilities		($2,381)	($2,146)

(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.