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Derivatives and Hedging Activities (Notes)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block] DERIVATIVES AND HEDGING ACTIVITIES
Hedge Accounting and Hedging Program

The purposes of our cash flow hedging programs are to manage the foreign currency exchange rate risk on forecasted expenses denominated in currencies other than the functional currency of the operating unit, and to manage floating interest rate risk associated with future interest payments on variable-rate term loans issued in January 2022. We do not issue derivatives for trading or speculative purposes.

To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. The derivative instruments we utilize, including various foreign exchange contracts and interest rate swaps, are designated and qualify as cash flow hedges. Our derivative instruments are recorded at fair value on the consolidated balance sheets and are classified based on the instrument's maturity date. We record changes in the fair value of the effective portion of the gain or loss on the derivative instrument as a component of other comprehensive (loss) income and we reclassify that gain or loss into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings.

Foreign Currency Exchange Rate Risk

Forward Exchange Forward Contracts

We enter into foreign exchange forward contracts to hedge a portion of our forecasted foreign currency-denominated revenues and expenses to minimize the effect of foreign exchange rate movements on the related cash flows. These contracts are agreements to buy or sell a quantity of a currency at a predetermined future date and at a predetermined exchange rate. Our current foreign exchange forward contracts hedge exposures principally denominated in Mexican Pesos ("MXN"), Euros, Japanese Yen ("JPY"), Chinese Renminbi ("CNH"), Canadian Dollar ("CAD"), U.S. Dollar ("USD") and Australian Dollar ("AUD") and have varying maturities with an average term of approximately twelve months. The total notional amount of these outstanding derivative contracts as of December 31, 2023 was $172.6 million, which included the notional equivalent of $27.1 million in MXN, $35.6 million in Euros, $17.4 million in JPY, $8.1 million in CNH, $18.4 million in CAD, $14.2 million in AUD, $42.6 million in USD and $9.2 million in other foreign currencies, with terms currently through November 2025.

Cross-currency Par Forward Contracts

We entered into cross-currency par forward contracts to hedge a portion of our Mexico forecasted expenses denominated in MXN. These contracts are agreements to exchange cash flows from one currency to another at specified intervals over the contract term with all exchanges occurring at the same predetermined rate.

In March 2020, we entered into a one-year cross-currency par forward contract. The total notional amount of this outstanding derivative as of December 31, 2020 was approximately 436.8 million MXN. The term of this one-year contract was November 3, 2020 to December 1, 2021. The derivative instrument matured in equal monthly amounts at a fixed forward rate of 24.26 MXN/USD.

In November 2021, we entered into a one-year cross-currency par forward contract. The total notional amount of this outstanding derivative as of December 31, 2021 was approximately 413.1 million MXN. The term of this one-year contract was December 1, 2021 to December 1, 2022. The derivative instrument matured in equal monthly amounts at a fixed forward rate of 21.60 MXN/USD.
Floating Interest Rate Risk

In November 2021, in anticipation of entering into the new senior secured credit facilities in January 2022, which included a variable-rate term loan A and a variable-rate term loan B (see Note 11: Long-Term Obligations), we entered into two forward-starting interest rate swaps. In February 2022, certain terms under the agreements were amended to reflect the transition from LIBOR to the Secured Overnight Financing Rate ("SOFR"), an alternative reference rate. Under the interest rate swap agreements we exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. The term loan A swap, as amended, has an initial notional amount of $300.0 million, reducing to $150.0 million evenly on a quarterly basis through its final maturity on March 30, 2027. We pay a fixed rate of 1.32% and will receive the greater of 3-month USD SOFR or (0.15)%. The total notional amount of this outstanding derivative as of December 31, 2023 was approximately $244.7 million. The term loan B swap, as amended, has an initial notional amount of $750.0 million, reducing to $46.9 million evenly on a quarterly basis through its final maturity on March 30, 2026. We pay a fixed rate of 1.17% and receive the greater of 3-month USD SOFR or 0.35%. The total notional amount of this outstanding derivative as of December 31, 2023 was approximately $421.9 million. In June 2023, we entered into an additional interest rate swap that hedges both term loan A and term loan B interest payments. The total notional amount of the swap is $300.0 million. The hedge matures on June 30, 2028. We pay a fixed rate of 3.88% and receive 3-months USD SOFR. These forward-starting swaps effectively convert the relevant portion of the floating-rate term loans to fixed rates.    

The following table presents the fair values of our derivative instruments included within the consolidated balance sheets (in thousands):
Derivatives Designated as Cash Flow Hedging Instruments
Consolidated Balance Sheet LocationForeign Exchange Forward ContractsInterest Rate SwapsGross Derivatives
As of December 31, 2023
Prepaid expenses and other current assets$6,785 $23,065 $29,850 
Other assets673 4,876 5,549 
Total assets$7,458 $27,941 $35,399 
Accrued liabilities$2,590 $— $2,590 
Other long-term liabilities240 — 240 
Total liabilities$2,830 $— $2,830 
Derivatives Designated as Cash Flow Hedging Instruments
As of December 31, 2022Foreign Exchange Forward ContractsForward-Starting Interest Rate SwapsGross Derivatives
Prepaid expenses and other current assets$4,860 $28,431 $33,291 
Other assets94 26,753 26,847 
Total assets$4,954 $55,184 $60,138 
Accrued liabilities$1,847 $— $1,847 
Other long-term liabilities167 — 167 
Total liabilities$2,014 $— $2,014 

    The following table presents the effects of our derivative instruments designated as cash flow hedges on the Consolidated Statements of Operations (in thousands):
Gain Reclassified From Accumulated Other Comprehensive (Loss) Income into Income
Location of Gain in the Consolidated Statements of OperationsYear Ended December 31,
202320222021
Derivatives designated as cash flow hedging instruments:
Foreign exchange forward contractsTotal revenues$296 $3,829 $— 
Foreign exchange forward contractsCost of goods sold7,852 7,751 3,444 
Foreign exchange forward contracts
Other expense, net(1)
229 — — 
Foreign exchange forward contracts
Interest expense(2)
13 717 — 
Interest rate swapsInterest expense32,444 6,122 — 
Total derivatives designated as cash flow hedging instruments$40,834 $18,419 $3,444 
_______________________________
(1) Represents location of gain reclassified from accumulated other comprehensive income (loss) into other expense, net as a result of ineffectiveness.
(2) Represents location of gain reclassified from accumulated other comprehensive income (loss) into interest expense as a result of a forecasted transaction being no longer probable of occurring.

We recognized the following gains (losses) on our derivative instruments designated as cash flow hedges in other comprehensive income (loss) before reclassifications to income (in thousands):
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)
Year Ended December 31,
202320222021
Derivatives designated as cash flow hedging instruments:
Foreign exchange forward contracts$10,788 $9,588 $950 
Interest rate swaps5,200 62,786 (1,480)
Total derivatives designated as cash flow hedging instruments$15,988 $72,374 $(530)

As of December 31, 2023, we expect an estimated $4.2 million in deferred gains on the outstanding foreign exchange forward contract and an estimated $23.9 million in deferred gains on the forward-starting interest rate swaps will be reclassified from accumulated other comprehensive loss to net income during the next 12 months concurrent with the underlying hedged transactions also being reported in net (loss) income.