The purposes of our cash flow hedging programs are to manage the foreign currency exchange rate risk on forecasted revenues and 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 the variable-rate term loans issued in 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 condensed consolidated balance sheets and are classified based on the instrument's maturity date. We record gains or losses from changes in the fair values of the derivative instruments as a component of other comprehensive income (loss) and we reclassify those gains or losses into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. If the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related derivative instrument from accumulated other comprehensive loss into earnings immediately.

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 foreign exchange forward contracts hedge exposures principally denominated in Mexican Pesos ("MXN"), Euros ("EUR"), Czech Koruna ("CZK"), Japanese Yen ("JPY"), Swedish Krona ("SEK"), Danish Krone ("DKK"), Chinese Renminbi ("CNH"), Canadian Dollar ("CAD"), U.S. Dollar ("USD") and Australian Dollar ("AUD") and have varying maturities with an average term of approximately eleven months. The total notional amount of these outstanding derivative contracts as of March 31, 2025 was $77.5 million, which included the notional equivalent of $4.5 million in CAD, $4.7 million in AUD, $40.5 million in MXN, $22.2 million in USD and $5.6 million in other foreign currencies, with terms currently through January 2026.

In 2022, we entered into interest rate swaps to reduce the interest rate volatility on our variable-rate term loan A and variable-rate term loan B (see Note 18: Long-Term Debt). We exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional amount. Effective March 30, 2022, 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 excluding its final maturity on March 30, 2027. We pay a fixed rate of 1.32% and will receive the greater of 3-months USD Secured Overnight Financing Rate ("SOFR") or (0.15)%. The total notional amount of this outstanding derivative as of March 31, 2025 was approximately $205.3 million. Effective March 30, 2022, 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 will receive the greater of 3-months USD SOFR or 0.35%. The total notional amount of this outstanding derivative as of March 31, 2025 was approximately $187.5 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 will receive 3-months USD SOFR.


	Derivatives Designated as Cash Flow Hedging Instruments
Condensed Consolidated Balance Sheet Location	Foreign Exchange Contracts		Interest Rate Swaps		Gross Derivatives

As of March 31, 2025
Prepaid expenses and other current assets	$	3,560	$	8,403	$	11,963
Other assets	—		512		512
Total assets	$	3,560	$	8,915	$	12,475

Accrued liabilities	$	4,335	$	—	$	4,335

Total liabilities	$	4,335	$	—	$	4,335

As of December 31, 2024
Prepaid expenses and other current assets	$	6,716	$	11,038	$	17,754
Other assets	—		5,724		5,724
Total assets	$	6,716	$	16,762	$	23,478

Accrued liabilities	$	7,391	$	—	$	7,391

Total liabilities	$	7,391	$	—	$	7,391


	(Losses) Gains Recognized in Other Comprehensive Income (Loss)
	Three months ended March 31,
	2025		2024
Derivatives designated as cash flow hedging instruments:
Foreign exchange forward contracts	$	(174)	$	4,940
Interest rate swaps	(4,091)		13,393
Total derivatives designated as cash flow hedging instruments	$	(4,265)	$	18,333


	Gains (Losses) Reclassified From Accumulated Other Comprehensive Income (Loss) into Income
		Three months ended March 31,
	Location of Gains (Losses) Recognized in Net Loss	2025		2024
Derivatives designated as cash flow hedging instruments:
Foreign exchange forward contracts	Total revenues	$	709	$	700
Foreign exchange forward contracts	Cost of goods sold	(1,014)		1,280


Interest rate swaps	Interest expense	3,756		7,964
Total derivatives designated as cash flow hedging instruments		$	3,451	$	9,944