Derivative Financial Instruments

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As part of our currency exchange rate risk management strategy, we enter into certain derivative foreign currency forward contracts that do not meet the U.S. GAAP criteria for hedge accounting but have the impact of partially offsetting certain foreign currency exposures. We account for these forward contracts at fair value and report the related gains or losses in currency exchange losses (gains), net, in the unaudited Condensed Consolidated Statements of Income. The notional amount of open forward contracts was $99.9 million and $99.0 million at March 31, 2022, and December 31, 2021, respectively.

The following table presents the unaudited Condensed Consolidated Balance Sheets location and fair value of assets and liabilities associated with derivative financial instruments:


(In thousands)	March 31, 2022		December 31, 2021
Derivatives not designated as hedging instruments:
Foreign exchange contracts: other current liabilities	$	242	$	128
Foreign exchange contracts: prepaid expenses and other current assets	419		619

The following table presents the unaudited Condensed Consolidated Statements of Income location and impact of derivative financial instruments:


	Loss Recognized in Income
	Three Months Ended March 31,
(In thousands)	2022		2021
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	2,765	$	3,388