XML 36 R27.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table presents the notional contract amounts for forward contracts outstanding:

As of
FASB ASC Topic 815 DesignationMarch 31, 2023December 31, 2022
Forward exchange contractsCash flow hedge$199,005 $198,473 
Forward exchange contractsNon-designated98,173 81,929 
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
Foreign exchange contracts designated as cash flow hedges had the following effects on accumulated other comprehensive income (loss) ("AOCI") and net earnings on our consolidated condensed statements of comprehensive income and our consolidated condensed balance sheets:

Amount of Gain Recognized in AOCIConsolidated Condensed Statements of Comprehensive IncomeAmount of Gain Reclassified from AOCI
Three Months Ended March 31,
Total Amount of Line Item Presented
Derivative Instrument20232022Location of amount reclassified2023202220232022
Foreign exchange contracts$2,538 $3,247 Net Sales$295,468 $242,327 $575 $1,744 
 Cost of Sales140,147 106,336 806 75 
Pre-tax gain$2,538 $3,247 $1,381 $1,819 
Tax expense615 787 335 441 
Net gain$1,923 $2,460 $1,046 $1,378 
Derivatives Not Designated as Hedging Instruments
Net gains and losses from derivative instruments not accounted for as hedges and losses on our intercompany receivables on our consolidated condensed statements of comprehensive income were:

Three Months Ended March 31,
Derivative InstrumentLocation on Consolidated Condensed Statements of Comprehensive Income20232022
 
Net loss on currency forward contractsSelling and administrative expense$(366)$(958)
Net gain on currency transaction exposuresSelling and administrative expense$76 $415 
Schedule of Fair Value for Forward Foreign Exchange Contracts The following tables summarize the fair value for forward foreign exchange contracts outstanding at March 31, 2023 and December 31, 2022:
March 31, 2023Location on Consolidated Condensed Balance SheetAsset Fair ValueLiabilities Fair ValueNet
Fair
Value
Derivatives designated as hedged instruments:   
Foreign exchange contractsPrepaid expenses and other current assets$6,869 $(2,476)$4,393 
Foreign exchange contractsOther assets485 (424)61 
$7,354 $(2,900)$4,454 
Derivatives not designated as hedging instruments:   
Foreign exchange contractsOther current liabilities52 (334)(282)
Total derivatives$7,406 $(3,234)$4,172 

December 31, 2022Location on Consolidated Condensed Balance SheetAsset Fair ValueLiabilities Fair ValueNet
Fair
Value
Derivatives designated as hedged instruments:  
Foreign exchange contracts Prepaid expenses and other current assets$6,757 $(3,121)$3,636 
Foreign exchange contractsOther long-term liabilities60 (400)(340)
$6,817 $(3,521)$3,296 
Derivatives not designated as hedging instruments:  
Foreign exchange contractsOther current liabilities48 (395)(347)
Total derivatives$6,865 $(3,916)$2,949 
Fair Value Measurement Inputs and Valuation Techniques The recurring Level 3 fair value measurements of contingent consideration for which the liabilities are recorded include the following significant unobservable inputs as of March 31, 2023:
Assumptions
Unobservable InputIn2BonesBiorez
Discount rate6.52%11.32%
Revenue volatility13.11%20.88%
Projected year of payment
2023-2026
2023-2026
Schedule of Business Acquisitions by Acquisition, Contingent Consideration Changes in the fair value of contingent consideration liabilities for the three months ended March 31, 2023 are as follows:
In2BonesBiorezLocation in Financial Statements
Balance as of January 1, 2023$70,198 $116,234 
Changes in fair value of contingent consideration2,637 1,799 Selling and administrative expense
Balance as of March 31, 2023$72,835 $118,033