The Company is exposed to various market risks including, but not limited to, changes in foreign currency exchange rates, changes in interest rates and price fluctuations of certain material commodities.

The Company regularly enters into derivative contracts with the objective of managing its financial and operational exposure arising from these risks by offsetting gains and losses on the underlying exposures with gains and losses on the financial instruments used to hedge them. The decision of whether and when to execute derivative financial instruments, along with the duration of the instrument, may vary from period to period depending on market conditions, the relative costs of the instruments and capacity to hedge. The Company does not enter into derivative financial instruments for speculative or trading purposes. Some derivative contracts do not qualify for hedge accounting; for other derivative contracts, we elect to not apply hedge accounting.

Information related to the recurring fair value measurement of derivative instruments in the consolidated condensed balance sheet as of June 30, 2025 is as follows:


				Asset Derivatives			Liability Derivatives
	Fair Value Hierarchy	Notional Amount		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Net Assets/ (Liabilities)
Derivatives Designated as Cash Flow Hedges
Foreign currency derivatives	Level 2	$	82,362	Other current assets	$	5,768	Other current liabilities	$	—	$	5,768
Interest rate contracts	Level 2	$	100,000	Other current assets	$	—	Other current liabilities	$	699	$	(699	)
Derivatives Not Designated as Hedging Instruments
Interest rate contracts	Level 2	$	100,000	Other current assets	$	104	Other current liabilities	$	—	$	104

Information related to the recurring fair value measurement of derivative instruments in the consolidated condensed balance sheet as of December 31, 2024 is as follows:


				Asset Derivatives			Liability Derivatives
	Fair Value Hierarchy	Notional Amount		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Net Assets/ (Liabilities)
Derivatives Designated as Cash Flow Hedges
Foreign currency derivatives	Level 2	$	126,496	Other current assets	$	—	Other current liabilities	$	2,037	$	(2,037	)
Derivatives Not Designated as Hedging Instruments
Interest rate contracts	Level 2	$	100,000	Other current assets	$	719	Other current liabilities	$	—	$	719

Information relating to the effect of derivative instruments on the consolidated condensed statements of income and the consolidated condensed statements of comprehensive income is as follows:


		Three Months Ended June 30,						Six Months Ended June 30,
	Location (Income/(Loss))	2025			2024			2025			2024
Derivatives Designated as Cash Flow Hedges
Foreign currency derivatives	Cost of sales – (loss) income	$	(766	)	$	2,896		$	(1,813	)	$	6,272
	Other comprehensive income (loss)		5,427			(7,560	)		9,054			(8,413	)
Total foreign currency derivatives		$	4,661		$	(4,664	)	$	7,241		$	(2,141	)

Interest rate contracts	Interest expense, net	$	—		$	—		$	—		$	—
	Other comprehensive income (loss)		(699	)		—			(699	)		—
Total interest rate derivatives		$	(699	)	$	—		$	(699	)	$	—

Derivatives Not Designated as Hedging Instruments
Interest rate contracts	Interest expense, net	$	(313	)	$	(308	)	$	(615	)	$	(4	)
Total interest rate derivatives		$	(313	)	$	(308	)	$	(615	)	$	(4	)

The Company did not incur any hedge ineffectiveness during the three and six months ended June 30, 2025 and 2024.

The Company previously sold certain customer trade receivables on a non-recourse basis under factoring arrangements with designated financial institutions. The sale of receivables under these agreements was considered an off-balance sheet arrangement to the Company and was accounted for as a true sale and excluded from accounts receivable in the consolidated condensed balance sheets. These factoring arrangements included a deferred purchase price component in which a portion of the purchase price for the receivable was paid by the financial institution in cash upon sale and the remaining portion was recorded as a deferred purchase price receivable and paid at a later date. Deferred purchase price receivables are recorded in other current assets within the consolidated condensed balance sheets. Cash proceeds received upon the sale of the receivables are included in net cash from operating activities and the cash proceeds received on the deferred purchase price receivables are included in net cash from investing activities. During the year ended December 31, 2024, the factoring agreements the Company was party to either expired or were terminated.