Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 26, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding forward contracts

We had the following outstanding foreign currency forward contracts as of June 26, 2020 (in millions):

Foreign currency contracts qualifying as cash flow hedges:	Notional amount
Euro	EUR	114.2
British pound	GBP	19.8
Japanese yen	JPY	2,120.7
Korean won	KRW	22,035.0

We had the following outstanding bunker fuel swap contracts as of June 26, 2020:

Bunker fuel swap contracts:	Notional amount
0.5% U.S. Gulf Coast (1)	298,438	barrels
3% U.S. Gulf Coast (1)	95,413	metric tons
0.5% Singapore	48,087	metric tons

(1) During the quarter ended June 26, 2020, we dedesignated certain portions of our bunker fuel cash flow hedges due to decreases in our forecasted fuel consumption for certain fuel types which was partially driven by the delay of the receipt of two of our six new refrigerated container vessels due to the COVID-19 pandemic. The notional amounts which were dedesignated consisted of 138,872 barrels of fuel related to our 0.5% U.S. Gulf Coast contracts and 9,554 metric tons of fuel related to our 3% U.S. Gulf Coast contracts. During the quarter ended June 26, 2020, we reclassified a $0.5 million loss related to our discontinued cash flow hedges from accumulated other comprehensive loss to other (expense) income, net. This reclassification reflected

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 June 26, 2020 and December 27, 2019 (U.S. dollars in millions):

	Derivatives designated as hedging instruments (1)
	Foreign exchange contracts				Bunker fuel swaps				Interest rate swaps				Total
Balance Sheet location:	June 26, 2020		December 27, 2019		June 26, 2020		December 27, 2019		June 26, 2020		December 27, 2019		June 26, 2020		December 27, 2019
Asset derivatives:
Prepaid expenses and other current assets	$	1.5	$	1.7	$	—	$	—	$	—	$	—	$	1.5	$	1.7
Total asset derivatives	$	1.5	$	1.7	$	—	$	—	$	—	$	—	$	1.5	$	1.7
Liability derivatives:
Accounts payable and accrued expenses	$	2.3	$	0.7	$	1.6	$	—	$	—	$	—	$	3.9	$	0.7
Other long-term liabilities	—		—		1.5		—		56.7		30.3		58.2		30.3
Total liability derivatives	$	2.3	$	0.7	$	3.1	$	—	$	56.7	$	30.3	$	62.1	$	31.0

⁽¹⁾ See Note 14, "Fair Value Measurements", for fair value disclosures.

Effect of derivative instruments on Consolidated Statements of Income

The following table reflects the effect of derivative instruments on the Consolidated Statements of Operations for the quarters and six months ended June 26, 2020 and June 28, 2019 (U.S. dollars in millions):

Derivatives in cash flow hedging relationships	Amount of gain (loss) recognized in other comprehensive (loss) income on derivatives				Location of (loss) gain reclassified from accumulated other comprehensive loss into income	Amount of gain (loss) reclassified from accumulated other comprehensive loss into income
	Quarter ended					Quarter ended
	June 26, 2020		June 28, 2019			June 26, 2020		June 28, 2019
Foreign exchange contracts	$	(0.6)	$	(2.2)	Net sales	$	1.6	$	1.7
Foreign exchange contracts	(0.4)		0.1		Cost of products sold	0.5		0.5
Bunker fuel swaps	6.1		—		Cost of products sold	(1.1)		—
Interest rate swaps, net of tax	(1.8)		(12.1)		Interest expense	(2.4)		(0.4)
Total	$	3.3	$	(14.2)		$	(1.4)	$	1.8
	Six months ended					Six months ended
	June 26, 2020		June 28, 2019			June 26, 2020		June 28, 2019
Foreign exchange contracts	$	(1.6)	$	1.0	Net sales	$	2.6	$	2.4
Foreign exchange contracts	(0.1)		0.8		Cost of products sold	0.6		0.6
Bunker fuel swaps	(2.2)		—		Cost of products sold	(1.1)		—
Interest rate swaps, net of tax	(23.3)		(21.3)		Interest expense	(3.6)		(0.7)
Total	$	(27.2)	$	(19.5)		$	(1.5)	$	2.3