XML 38 R28.htm IDEA: XBRL DOCUMENT v3.24.3
Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
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 DesignationSeptember 30, 2024December 31, 2023
Forward exchange contractsCash flow hedge$222,548 $223,839 
Forward exchange contractsNon-designated49,273 55,789 
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 (Loss) Recognized in AOCI
Consolidated Condensed Statements of Comprehensive Income
Amount of Gain Reclassified from AOCI
Three Months Ended September 30,
Total Amount of Line Item Presented
Derivative Instrument20242023Location of amount reclassified2024202320242023
Foreign exchange contracts$(9,073)$6,180 Net Sales$316,701 $304,578 $270 $1,095 
 Cost of Sales137,706 136,519 (2)1,482 
Pre-tax gain (loss)
$(9,073)$6,180 $268 $2,577 
Tax expense (benefit)
(2,199)1,498 65 625 
Net gain (loss)
$(6,874)$4,682 $203 $1,952 

Amount of Gain (Loss) Recognized in AOCI
Consolidated Condensed Statements of Comprehensive Income
Amount of Gain Reclassified from AOCI
Nine Months Ended September 30,
Total Amount of Line Item Presented
Derivative Instrument20242023Location of amount reclassified2024202320242023
Foreign exchange contracts$(2,314)$11,471 Net Sales$961,071 $917,699 $2,260 $2,585 
Cost of Sales426,383 423,629 1,370 3,463 
Pre-tax gain (loss)
$(2,314)$11,471 $3,630 $6,048 
Tax expense (benefit)
(560)2,779 880 1,466 
Net gain (loss)
$(1,754)$8,692 $2,750 $4,582 
.
Derivatives Not Designated as Hedging Instruments
Net gains (losses) from derivative instruments not accounted for as hedges and gains (losses) on our intercompany receivables on our consolidated condensed statements of comprehensive income were:

Three Months Ended September 30,Nine Months Ended September 30,
Derivative Instrument
Location on Consolidated Condensed Statements of Comprehensive Income
2024202320242023
  
Net gain (loss) on currency forward contracts
Selling and administrative expense$(1,513)$227 $(631)$630 
Net gain (loss) on currency transaction exposures
Selling and administrative expense$1,108 $(552)$(1,102)$(1,831)
Schedule of Fair Value for Forward Foreign Exchange Contracts The following tables summarize the fair value for forward foreign exchange contracts outstanding at September 30, 2024 and December 31, 2023:
September 30, 2024Location on Consolidated Condensed Balance SheetAsset Fair ValueLiabilities Fair ValueNet
Fair
Value
Derivatives designated as hedged instruments:   
Foreign exchange contracts
Other current liabilities
$866 $(5,342)$(4,476)
Foreign exchange contracts
Other long-term liabilities
42 (1,355)(1,313)
$908 $(6,697)$(5,789)
Derivatives not designated as hedging instruments:   
Foreign exchange contractsOther current liabilities17 (100)(83)
Total derivatives$925 $(6,797)$(5,872)

December 31, 2023Location 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$3,761 $(3,197)$564 
Foreign exchange contractsOther long-term liabilities24 (433)(409)
$3,785 $(3,630)$155 
Derivatives not designated as hedging instruments:  
Foreign exchange contractsOther current liabilities39 (209)(170)
Total derivatives$3,824 $(3,839)$(15)
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 September 30, 2024:
Assumptions
Unobservable InputIn2BonesBiorez
Discount rate7.33%12.54%
Revenue volatility19.53%22.27%
Projected year of payment
2024-2026
2024-2026
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation Changes in the fair value of contingent consideration liabilities for the nine months ended September 30, 2024 and 2023 are as follows:
In2BonesBiorez
2024202320242023
Balance as of January 1,$41,393 $70,198 $128,751 $116,234 
Payments
(3,028)— (45,056)— 
Changes in fair value of contingent consideration(27,269)860 (14,999)6,089 
Balance as of September 30,$11,096 $71,058 $68,696 $122,323