XML 17 R33.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 27, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding Foreign Currency Forward Contracts that were Entered into to Hedge Forecasted Cash Flows

We had the following outstanding foreign currency forward as of June 27, 2014:
 
Foreign Currency Contracts Qualifying as Cash Flow Hedges:
 
Notional Amount
Euro
 
€
 
213.3

 
million
British pound
 
£
 
11.7

 
million
Japanese yen
 
JPY
 
1,726.5

 
million
Costa Rican colon
 
CRC
 
7,758.1

 
million
Philippine peso
 
PHP
 
14.0

 
million
Chilean peso
 
CLP
 
5,586.8

 
million
Polish Zloty
 
PLN
 
3.8

 
million
Korean Won
 
KRW
 
50,478.0

 
million
Fair Values of Derivative Instruments
The following table reflects the fair values of derivative instruments, all of which are designated as Level 2 of the fair value hierarchy, as of June 27, 2014 and December 27, 2013 (U.S. dollars in millions):
 
Derivatives Designated as Hedging Instruments (1)
 
Foreign exchange contracts
Balance Sheet Location:
June 27, 2014 (2)
 
December 27, 2013
Asset derivatives:
 
 
 
Prepaid expenses and other current assets
$
1.2

 
$
2.8

Other noncurrent assets
0.5

 
—

Total asset derivatives
$
1.7

 
$
2.8

 
 
 
 
Liability derivatives:
 

 
 

Accounts payable and accrued expenses
$
4.7

 
$
5.3

Other noncurrent liabilities
0.5

 
0.8

Total liability derivatives
$
5.2

 
$
6.1


(1) See Note 15, "Fair Value Measurements", for fair value disclosures.
(2) We expect that $3.5 million of net fair value of hedges will be recognized as a net loss in AOCI and transferred to earnings during the next 12 months, along with the earnings effect of the related forecasted transactions. The net fair value of hedges that are expected to settle during the last six months of 2015 and through the end of 2016 is zero.
Effect of Derivative Instruments on the Consolidated Statements of Income
The following table reflects the effect of derivative instruments on the Consolidated Statements of Income for the quarter and six months ended June 27, 2014 and June 28, 2013, respectively (U.S. dollars in millions):
 
 
Derivatives in Cash Flow
Hedging Relationships
Amount of Gain (Loss) Recognized in Other
Comprehensive Income on Derivatives
(Effective Portion)
 
Location of Gain
(Loss) Reclassified
from AOCI into
Income (Effective
Portion)
Amount of Gain (Loss) Reclassified from
AOCI into Income (Effective Portion)
 
Quarter ended
 
 
Quarter ended
 
June 27,
2014
 
June 28,
2013
 
 
June 27, 2014
 
June 28,
2013
Foreign exchange contracts
$
2.4

 
$
(1.9
)
 
Net sales
$
(1.5
)
 
$
(3.6
)
Foreign exchange contracts
(1.0
)
 
(0.1
)
 
Cost of products sold
—

 
1.0

Bunker fuel swap agreements (1)
—

 
(0.9
)
 
Bunker fuel swap agreements (1)
—

 
—

Total
$
1.4

 
$
(2.9
)
 
 
$
(1.5
)
 
$
(2.6
)
 
 
 
 
 
 
 
 
 
 
Six months ended
 
 
Six months ended
 
June 27, 2014
 
June 28,
2013
 
 
June 27, 2014
 
June 28,
2013
Foreign exchange contracts
$
3.2

 
$
18.1

 
Net sales
$
(2.1
)
 
$
(5.8
)
Foreign exchange contracts
(3.6
)
 
3.6

 
Cost of products sold
0.7

 
1.7

Bunker fuel swap agreements (1)
—

 
(0.7
)
 
Bunker fuel swap agreements (1)
—

 
—

Total
$
(0.4
)
 
$
21.0

 
 
$
(1.4
)
 
$
(4.1
)

(1) The bunker fuel swap agreements had an ineffective portion of $0.1 million for the quarter and six months ended June 28, 2013. There were no bunker fuel swap agreements for the quarter and six months ended June 27, 2014.