| Derivatives |
Derivatives We use foreign currency forward contracts to mitigate foreign currency risk of certain monetary assets and liabilities denominated in foreign currencies. We do not enter into such contracts for trading or speculative purposes. These derivative instruments are not designated as hedging instruments. We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we enter into foreign currency forward contracts, generally settled monthly, that are designated as hedges of net investments.
As of March 31, 2026 and December 31, 2025, our foreign exchange forward contracts consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Notional Value | | Fair Value (Level 2) | | Balance Sheet Location | | Notional Value | | Fair Value (Level 2) | | Balance Sheet Location | | (In thousands) | | Forward contracts not designated as hedging instruments | | Euro dollar | $ | 25,174 | | | $ | 165 | | | Other current assets | | $ | 17,880 | | | $ | (6) | | | Accrued expenses | | Japanese yen | 223,467 | | | 1,140 | | | Other current assets | | 253,313 | | | (848) | | | Accrued expenses | | Korean won | 70,103 | | | 646 | | | Other current assets | | 82,752 | | | (601) | | | Accrued expenses | | Philippine peso | 10,685 | | | (4) | | | Accrued expenses | | 13,114 | | | (76) | | | Accrued expenses | | Singapore dollar | 27,696 | | | (30) | | | Accrued expenses | | 11,566 | | | (27) | | | Accrued expenses | | Taiwan dollar | 40,666 | | | (165) | | | Accrued expenses | | 36,598 | | | (59) | | | Accrued expenses | | Total forward contracts not designated as hedging instruments | $ | 397,791 | | | $ | 1,752 | | | | | $ | 415,223 | | | $ | (1,617) | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | Notional Value | | Fair Value (Level 2) | | Balance Sheet Location | | Notional Value | | Fair Value (Level 2) | | Balance Sheet Location | | (In thousands) | | Forward contracts designated as net investment hedging instruments | | Japanese yen | $ | 121,243 | | | $ | (646) | | | Accrued expenses | | $ | 123,846 | | | $ | 425 | | | Other current assets | | Total forward contracts designated as net investment hedging instruments | $ | 121,243 | | | $ | (646) | | | | | $ | 123,846 | | | $ | 425 | | | |
For the three months ended March 31, 2026 and 2025, we incurred a net loss of $3.6 million and $2.9 million, respectively, due to the impact of derivatives not designated as hedging instruments, which includes the forward costs, and the revaluation of the related hedged items. The following table presents the gain or loss recognized on our derivatives designated as net investment hedging instruments for the three months ended March 31, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended March 31, | | Location on Consolidated Financial Statements | | 2026 | | 2025 | | | | (In thousands) | | Difference between forward rate and spot rate of the forward contracts | Other (income) expense, net | | $ | (980) | | | $ | (1,318) | | | Changes in fair value of forward contracts | Other comprehensive income (loss) | | $ | 1,173 | | | $ | (4,709) | |
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