As a global company, we are exposed in the normal course of business to various risks, including foreign currency and commodity price risks, that could affect our financial position, results of operations, and cash flows. We may use derivative instruments to hedge against these risks and only hold such instruments for hedging purposes, not for speculative or trading purposes.

Depending on the terms of the specific derivative instruments and market conditions, some of our derivative instruments may be assets and others liabilities at any particular balance sheet date. We report all of our derivative instruments at fair value and account for changes in the fair value of derivative instruments within “Accumulated other comprehensive loss” if the derivative instruments qualify for hedge accounting. For those derivative instruments that do not qualify for hedge accounting (i.e., “economic hedges”), we record the changes in fair value directly to earnings. See Note 8. “Fair Value Measurements” to our condensed consolidated financial statements for information about the techniques we use to measure the fair value of our derivative instruments.


	March 31, 2025
	Other Current Assets		Other Current Liabilities




Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	$	1,195	$	16,585


Total derivative instruments	$	1,195	$	16,585


	December 31, 2024
	Other Current Assets		Other Current Liabilities
Derivatives designated as hedging instruments:
Commodity swap contracts	$	—	$	35


Derivatives not designated as hedging instruments:
Foreign exchange forward contracts	13,452		18,584

Total derivative instruments	$	13,452	$	18,619

The following table presents the pretax amounts related to derivative instruments designated as cash flow hedges affecting accumulated other comprehensive income (loss) and our condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024 (in thousands):


	Commodity Swap Contracts
Balance as of December 31, 2024	$	(366)

Amount reclassified to cost of sales	366
Balance as of March 31, 2025	$	—

Balance as of December 31, 2023	$	(1,493)
Amounts recognized in other comprehensive income (loss)	221
Amount reclassified to cost of sales	1,149
Balance as of March 31, 2024	$	(123)

The following table presents the effect of derivative instruments not designated as hedges on our condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024 (in thousands):

Many of our subsidiaries have assets and liabilities (primarily cash, receivables, deferred taxes, payables, accrued expenses, lease liabilities, debt, and solar module collection and recycling liabilities) that are denominated in currencies other than the subsidiaries’ functional currencies. Changes in the exchange rates between the functional currencies of our subsidiaries and the other currencies in which these assets and liabilities are denominated will create fluctuations in our reported condensed consolidated statements of operations. We may enter into foreign exchange forward contracts or other financial instruments to economically hedge assets and liabilities against the effects of currency exchange rate fluctuations. The gains and losses on such foreign exchange forward contracts will economically offset all or part of the transaction gains and losses that we recognize in earnings on the related foreign currency denominated assets and liabilities.

We also enter into foreign exchange forward contracts to economically hedge balance sheet and other exposures related to transactions between certain of our subsidiaries and transactions with third parties. Such contracts are considered economic hedges and do not qualify for hedge accounting. Accordingly, we recognize gains or losses from the fluctuations in foreign exchange rates and the fair value of these derivative contracts in “Foreign currency loss, net” on our condensed consolidated statements of operations.

As of March 31, 2025 and December 31, 2024, the notional values of our foreign exchange forward contracts that do not qualify for hedge accounting were as follows (notional amounts and U.S. dollar equivalents in millions):

March 31, 2025

Transaction

Currency

Notional Amount

USD Equivalent

Purchase

Euro

€165.4

$179.1

Sell

Euro

€9.5

$10.3

Purchase

Indian rupee

INR 3,364.3

$39.3

Sell

Indian rupee

INR 76,143.8

$890.1

Purchase

Japanese yen

¥1,336.2

$8.9

Sell

Japanese yen

¥949.1

$6.3

Purchase

Malaysian ringgit

MYR 227.4

$51.3

Sell

Malaysian ringgit

MYR 40.8

$9.2

Sell

Mexican peso

MXN 34.4

$1.7

Purchase

Singapore dollar

SGD 30.9

$23.0

December 31, 2024

Transaction

Currency

Notional Amount

USD Equivalent

Sell

Canadian dollar

CAD 4.2

$2.9

Purchase

Euro

€181.6

$189.4

Sell

Euro

€55.1

$57.5

Purchase

Indian rupee

INR 1,485.0

$17.4

Sell

Indian rupee

INR 66,934.0

$783.9

Purchase

Japanese yen

¥3,442.2

$21.8

Sell

Japanese yen

¥3,761.5

$23.8

Purchase

Malaysian ringgit

MYR 217.1

$48.5

Sell

Malaysian ringgit

MYR 29.5

$6.6

Sell

Mexican peso

MXN 34.6

$1.7

Purchase

Singapore dollar

SGD 14.1

$10.4

Sell

Singapore dollar

SGD 19.7

$14.5

From time to time, we use commodity swap contracts to mitigate our exposure to commodity price fluctuations for certain raw materials used in the production of our modules. During the year ended December 31, 2024, we entered into various commodity swap contracts to hedge a portion of our forecasted cash flows for purchases of steel between April 2024 and December 2024. Such swaps had an aggregate initial notional value based on short tons of forecasted steel purchases, equivalent to $7.6 million, and entitled us to receive the price based on the U.S. Midwest Hot-Rolled Coil Steel Index while requiring us to pay certain fixed prices. The notional amount of the commodity swap contracts proportionately adjusted with forecasted purchases of steel.

These commodity swap contracts qualified for accounting as cash flow hedges in accordance with ASC 815, and we designated them as such. We reported unrealized gains or losses on such contracts in “Accumulated other comprehensive loss” and subsequently reclassified applicable amounts into earnings when the hedged transactions occurred and impacted earnings. We determined that these derivative financial instruments were highly effective as cash flow hedges as of December 31, 2024. As of March 31, 2025, we had no outstanding cash flow hedges.