Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Derivative Instruments

As of June 30, 2025, we had the following outstanding foreign currency forward contracts, which had the below hedge accounting designation in accordance with FASB ASC Topic 815, Derivatives and Hedging:

Notional
(in millions)

Effective Date(s)

Maturity Date(s)

Index (Exchange Rates)

Weighted-Average Strike Rate

Hedge

Designation (1)

342.5 EUR

Various from July 2023 to June 2025

Various from July 2025 to June 2027

Euro ("EUR") to USD

1.11 USD

Cash flow hedge

3,470.5 MXN

Various from July 2023 to June 2025

Various from July 2025 to June 2027

USD to Mexican Peso ("MXN")

20.25 MXN

Cash flow hedge

58.4 GBP

Various from July 2023 to June 2025

Various from July 2025 to June 2027

British Pound Sterling ("GBP") to USD

1.28 USD

Cash flow hedge

Notional
(in millions)

Effective Date(s)

Maturity Date(s)

Index (Exchange Rates)

Weighted-Average Strike Rate

Hedge

Designation (1)

58.2 EUR

June 26, 2025

July 31, 2025

EUR to USD

1.17 USD

Not designated

153.4 USD

Various from March 2024 to May 2024

Various from July 2025 to May 2026

USD to Chinese Renminbi ("CNY")

6.98 CNY

Not designated

1,071.4 CNY

Various September 2024

Various from July 2025 to May 2026

USD to CNY

6.80 CNY

Not designated

27,819.0 KRW

Various from August 2023 to September 2024

Various from July 2025 to July 2026

USD to Korean Won ("KRW")

1,312.75 KRW

Not designated

111.2 MXN

June 26, 2025

July 31, 2025

USD to MXN

18.95 MXN

Not designated

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(1) Derivative financial instruments not designated as hedges are used to manage our exposure to currency exchange rate risk. They are intended to preserve economic value, and they are not used for trading or speculative purposes.

As of June 30, 2025, we had the following outstanding commodity forward contracts, none of which were designated for hedge accounting treatment:

Commodity

Notional

Remaining Contracted Periods

Weighted-Average Strike Price Per Unit

Silver

649,527 troy oz.

July 2025 to June 2027

$31.53

Copper

5,131,320 pounds

July 2025 to June 2027

$4.30

Schedule of Fair Values of Derivative Financial Instruments and Their Classification

The following table presents the fair values of our derivative financial instruments and their classification in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024:


	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	June 30, 2025		December 31, 2024		Balance Sheet Location	June 30, 2025		December 31, 2024
Derivatives designated as hedging instruments
Foreign currency forward contracts	Prepaid expenses and other current assets	$	8,252	$	15,717	Accrued expenses and other current liabilities	$	19,757	$	17,018
Foreign currency forward contracts	Other assets	4,162		2,936		Other long-term liabilities	6,481		4,042
Total		$	12,414	$	18,653		$	26,238	$	21,060
Derivatives not designated as hedging instruments
Commodity forward contracts	Prepaid expenses and other current assets	$	3,432	$	1,413	Accrued expenses and other current liabilities	$	174	$	902
Commodity forward contracts	Other assets	856		73		Other long-term liabilities	19		360
Foreign currency forward contracts	Prepaid expenses and other current assets	2,335		457		Accrued expenses and other current liabilities	6,419		4,828
Foreign currency forward contracts	Other assets	3		—		Other long-term liabilities	4		1,760
Total		$	6,626	$	1,943		$	6,616	$	7,850

Schedule of Effect of Derivative Financial Instruments

The following tables present the effect of our derivative financial instruments on the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive income for the three months ended June 30, 2025 and 2024:


Derivatives designated as hedging instruments	Amount of Deferred (Loss)/Gain Recognized in Other Comprehensive Income/(Loss)				Location of Net (Loss)/Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income	Amount of Net (Loss)/Gain Reclassified from Accumulated Other Comprehensive Loss into Net Income
	2025		2024			2025		2024
Foreign currency forward contracts	$	(27,360)	$	5,675	Net revenue	$	(764)	$	762
Foreign currency forward contracts	$	19,128	$	(16,407)	Cost of revenue	$	(4,417)	$	8,485


Derivatives not designated as hedging instruments	Amount of Gain/(Loss) Recognized in Net Income				Location of Gain/(Loss) Recognized in Net Income
	2025		2024
Commodity forward contracts	$	1,593	$	4,977	Other, net
Foreign currency forward contracts	$	(2,519)	$	(1,837)	Other, net


Derivatives designated as hedging instruments	Amount of Deferred (Loss)/Gain Recognized in Other Comprehensive Income/(Loss)				Location of Net Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income	Amount of Net Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Net Income
	2025		2024			2025		2024
Foreign currency forward contracts	$	(39,084)	$	16,640	Net revenue	$	4,263	$	870
Foreign currency forward contracts	$	26,654	$	(7,455)	Cost of revenue	$	(7,531)	$	15,839


Derivatives not designated as hedging instruments	Amount of Gain/(Loss) Recognized in Net Income				Location of Gain/(Loss) Recognized in Net Income
	2025		2024
Commodity forward contracts	$	6,012	$	6,076	Other, net
Foreign currency forward contracts	$	(4,095)	$	(1,157)	Other, net

Sensata Technologies Holding plc 10-Q