XML 46 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 29, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding foreign currency forward contracts
We had the following outstanding foreign currency forward contracts as of September 29, 2017 (in millions):
 
Foreign currency contracts qualifying as cash flow hedges:
 
Notional amount
Euro
 
EUR
 
89.2

British pound
 
GBP
 
4.7

Japanese yen
 
JPY
 
738.0

Korean Won
 
KRW
 
4,486.0

Philippine peso
 
PHP
 
523.0
Fair values of derivative instruments
The following table reflects the fair values of derivative instruments, all of which are designated as Level 2 in the fair value hierarchy, as of September 29, 2017 and December 30, 2016 (U.S. dollars in millions):
 
Derivatives designated as hedging instruments (1)
 
Foreign exchange contracts
Balance Sheet location:
September 29, 2017 (2)
 
December 30,
2016
Asset derivatives:
 
 
 
Prepaid expenses and other current assets
$
0.7

 
$
5.4

Total asset derivatives
$
0.7

 
$
5.4

 
 
 
 
Liability derivatives:
 

 
 

Accounts payable and accrued expenses
$
2.0

 
$
—

Total liability derivatives
$
2.0

 
$
—


(1) See Note 17, "Fair Value Measurements", for fair value disclosures.
(2) We expect that $1.3 million of the net fair value of hedges recognized as a loss in accumulated other comprehensive income ("AOCI") will be transferred to earnings during the next 12 months, along with the earnings effect of the related forecasted transactions.
Effect of derivative instruments on Consolidated Statements of Income
The following table reflects the effect of derivative instruments on the Consolidated Statements of Income for the quarters and nine months ended September 29, 2017 and September 30, 2016 (U.S. dollars in millions):
 
 
Derivatives in effective cash flow
hedging relationships
Amount of (loss) gain recognized in other
comprehensive income on derivatives
(effective portion)
 
Location of (loss) gain
reclassified
from AOCI into
income (effective
portion)
Amount of (loss) gain reclassified from
AOCI into income (effective portion)
 
Quarter ended
 
 
Quarter ended
 
September 29,
2017
 
September 30,
2016
 
 
September 29,
2017
 
September 30,
2016
Foreign exchange
contracts
$
(0.3
)
 
$
(1.5
)
 
Net sales
$
(1.5
)
 
$
(1.0
)
Foreign exchange
contracts
—

 
(0.3
)
 
Cost of products sold
0.1

 
0.2

Total
$
(0.3
)
 
$
(1.8
)
 
 
$
(1.4
)
 
$
(0.8
)
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
 
Nine months ended
 
September 29,
2017
 
September 30,
2016
 
 
September 29,
2017
 
September 30,
2016
Foreign exchange
contracts
$
(6.2
)
 
$
(11.5
)
 
Net sales
$
0.1

 
$
3.6

Foreign exchange
contracts
(0.5
)
 
0.1

 
Cost of products sold
0.4

 
0.2

Total
$
(6.7
)
 
$
(11.4
)
 
 
$
0.5

 
$
3.8