Company: BHE
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025644
Chunk: 106

Company: BENCHMARK ELECTRONICS INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 106
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). During 2022, the Company recorded an unrealized gain of $5.0 million ($3.7 million net of tax) on the previous interest rate swap in other comprehensive income (loss). See Note 13.As of December 31, 2024 and 2023, the fair value estimates for the Company’s respective interest rate swap agreements were based on Level 2 inputs of the fair value hierarchy, as the Company obtained the valuation from a third party active in relevant markets. The valuation of the interest rate swap agreements is primarily measured through various pricing models and discounted cash flow analysis that incorporate observable market parameters, such as interest rate yield curves and volatility.The fair values of the Company’s derivative instruments were as follows: 

        December 31,

        December 31,

        (in thousands)
         
        Balance Sheet Location
         
        2024

        2023

        Derivatives designated as hedging instruments:

        Forward currency exchange contracts
         
        Other long-term assets (liabilities)
         
        $
        (3,745
        )
         
        $
        2,664

        Interest rate swap agreement
         
        Other long-term assets (liabilities)

        (114
        )

        (2,458
        )
       
       Financial instruments that subject the Company to credit risk consist of cash and cash equivalents, restricted cash and trade accounts receivable. The Company maintains cash and cash equivalents with recognized financial institutions. One of the most significant credit risks is the ultimate realization of accounts receivable. This risk is mitigated by (i) sales generally are to well established companies, (ii) performing ongoing credit evaluation of customers, and (iii) engaging in frequent contact with customers, thus enabling management to monitor current changes in their business operations and respond accordingly. Management believes its allowance for doubtful accounts is adequate as of December 31, 2024. Concentrations of credit risk related to trade accounts receivable resulting from sales to major customers are discussed in Note 10.

Note 13—Accumulated Other Comprehensive LossThe changes in accumulated other comprehensive loss by component were as follows: 

        (in thousands)
         
        ForeignCurrencyTranslationAdjustments

        DerivativeInstruments,Net of Tax

        Other

        Total

        Balances, December 31, 2021
         
        $
        (12,729
        )
         
        $
        (3,372
        )
         
        $
        (