Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 27, 2019

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 contracts as of December 27, 2019:

Foreign Currency Contracts Qualifying as Cash Flow Hedges:		Notional Amount
British pound	£	14.5	million
Chilean peso	CLP	8,944.8	million
Euro	€	49.5	million
Japanese yen	JPY	4,746.9	million
Korean won	KRW	33,855.0	million

 

Fair Values of Derivative Instruments

The following table reflects the fair values of derivative instruments, which are designated as level 2 in the fair value hierarchy, as of December 27, 2019 and December 28, 2018 (U.S. dollars in millions):

 

	Derivatives Designated as Hedging Instruments(1)
	Foreign exchange contracts				Interest Rate Swaps				Total
Balance Sheet Location:	December 27, 2019		December 28, 2018		December 27, 2019		December 28, 2018		December 27, 2019			December 28, 2018
Asset derivatives:
Prepaid expenses and other current assets	$	1.7	$	1.6	$	—	$	—	$	1.7	(2)	$	1.6
Total asset derivatives	$	1.7	$	1.6	$	—	$	—	$	1.7		$	1.6
Liability derivatives:
Accounts payable and accrued expenses	$	0.7	$	0.8	$	—	$	—	$	0.7	(2)	$	0.8
Other non-current liabilities	—		—		30.3		7.6		30.3		(2)	7.6
Total liability derivatives	$	0.7	$	0.8	$	30.3	$	7.6	$	31.0		$	8.4

⁽¹⁾ See Note 18, "Fair Value Measurements," for fair value disclosures.

⁽²⁾ We expect that $1.0 million of the fair value of hedges recognized as a net gain in accumulated other comprehensive income ("AOCI") will be transferred to earnings during the next 12 months, and the remaining net loss of $31.0 million in AOCI over a period of 9 years, along with the earnings effect of the related forecasted transactions.

Effect of Derivative Instruments on the Consolidated Statements of Income

The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations for the years ended December 27, 2019 and December 28, 2018 (U.S. dollars in millions):

 

Derivatives in 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 Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	Year ended							Year ended
	December 27, 2019			December 28, 2018				December 27, 2019			December 28, 2018
Foreign exchange contracts	$	(0.1	)	$	1.6		Net sales	$	8.1		$	5.3
Foreign exchange contracts	0.2			0.6			Cost of products sold	1.5			—
Interest rate swaps, net of tax	(19.8		)	(6.6		)	Interest expense	(2.4		)	(1.5		)
Total	$	(19.7	)	$	(4.4	)		$	7.2		$	3.8