Derivatives (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

We enter into approximately 150 cash flow foreign currency hedges every month. As of June 30, 2019, we had entered into foreign currency forward contracts, which qualified as cash flow hedges, with the following notional amounts (in thousands and in local currencies):

Currency	Symbol	Forward Notional Amount
Australian Dollar	AUD	3,430
Brazilian Real	BRL	1,080
Canadian Dollar	CAD	4,330
Swiss Franc	CHF	1,970
Chinese Renminbi	CNY	166,500
Danish Krone	DKK	18,175
Euro	EUR	22,600
British Pound	GBP	4,820
Japanese Yen	JPY	1,335,000
Korean Won	KRW	4,475,000
Mexican Peso	MXN	296,500
Norwegian Krone	NOK	6,000
Swedish Krona	SEK	29,210

We forecast our net exposure in various receivables and payables to fluctuations in the value of various currencies, and we enter into foreign currency forward contracts to mitigate that exposure. We enter into approximately 20 foreign currency fair value hedges every month. As of June 30, 2019, we had entered into foreign currency forward contracts related to those balance sheet accounts, with the following notional amounts (in thousands and in local currencies):

Currency	Symbol	Forward Notional Amount
Australian Dollar	AUD	13,788
Brazilian Real	BRL	9,000
Canadian Dollar	CAD	2,652
Swiss Franc	CHF	643
Chinese Renminbi	CNY	85,226
Danish Krone	DKK	2,544
Euro	EUR	11,717
British Pound	GBP	5,653
Hong Kong Dollar	HKD	11,000
Japanese Yen	JPY	1,445,574
Korean Won	KRW	6,000,000
Mexican Peso	MXN	25,000
Norwegian Krone	NOK	3,180
Swedish Krona	SEK	17,154
Singapore Dollar	SGD	1,676
South African Rand	ZAR	37,800

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

The fair value of derivative instruments on a gross basis was as follows on the dates indicated (in thousands):

		Fair Value
	Balance Sheet Location	June 30, 2019			December 31, 2018
Derivative instruments designated as hedging instruments
Assets
Interest rate swap	Other assets (long-term)	$	1,907		$	5,772
Foreign currency forward contracts	Prepaid expenses and other assets	960			613
Foreign currency forward contracts	Other assets (long-term)	244			151
Liabilities
Foreign currency forward contracts	Accrued expenses	(778		)	(711		)
Foreign currency forward contracts	Other long-term obligations	(101		)	(101		)
Derivative instruments not designated as hedging instruments
Assets
Foreign currency forward contracts	Prepaid expenses and other assets	$	229		$	814
Liabilities
Foreign currency forward contracts	Accrued expenses	(1,539		)	(796		)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

Derivative instruments designated as cash flow hedges had the following effects, before income taxes, on other comprehensive income and net earnings in our consolidated statements of income, consolidated statements of comprehensive income and consolidated balance sheets (in thousands):

	Amount of Gain/(Loss) recognized in OCI						Consolidated Statements of Income						Amount of Gain/(Loss) reclassified from AOCI
	Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
	2019			2018			2019			2018			2019			2018
Derivative instrument						Location in statements of income
Interest rate swaps	$	(1,812	)	$	748	Interest expense	$	(3,115	)	$	(3,338	)	$	602		$	357
Foreign currency forward contracts	1,064			394		Revenue	255,532			224,810			(92		)	(234		)
						Cost of sales	(143,568		)	(124,801		)	(104		)	138
	Amount of Gain/(Loss) recognized in OCI						Consolidated Statements of Income						Amount of Gain/(Loss) reclassified from AOCI
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018			2019			2018
Derivative instrument						Location in statements of income
Interest rate swaps	(2,669		)	$	2,868	Interest expense	(5,879		)	(5,736		)	$	1,196		$	570
Foreign currency forward contracts	51			568		Revenue	493,881			427,844			102			(385		)
						Cost of sales	(277,281		)	(239,779		)	(185		)	378

Derivative Instruments, Gain (Loss)

The following gains/(losses) from these derivative instruments were recognized in our consolidated statements of income for the periods presented (in thousands):

		Three Months Ended June 30,					Six Months Ended June 30,
Derivative Instrument	Location in statements of income	2019			2018		2019			2018
Foreign currency forward contracts	Other expense	$	(489	)	$	3,153	$	(755	)	$	2,038