Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 25, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding forward contracts

We had the following outstanding foreign currency forward contracts as of September 25, 2020 (in millions):

Foreign currency contracts qualifying as cash flow hedges:	Notional amount
Euro	EUR	105.8
British pound	GBP	16.4
Japanese yen	JPY	2,749.0
Korean won	KRW	10,465.0

We had the following outstanding bunker fuel swap contracts as of September 25, 2020:

Bunker fuel swap contracts:	Notional amount
0.5% U.S. Gulf Coast (1)	174,161	barrels
3% U.S. Gulf Coast (1)	90,116	metric tons
0.5% Singapore	42,111	metric tons

(1) During the nine months ended September 25, 2020, we dedesignated 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 three of our six new refrigerated container vessels due to the COVID-19 pandemic. The notional amounts which were dedesignated consisted of 133,855 barrels of fuel related to our 0.5% U.S. Gulf Coast contracts and 63,753 metric tons of fuel related to our 3% U.S. Gulf Coast contracts. When hedges are dedesignated, any changes in fair value of the associated derivatives since the date of dedesignation are recognized in other (expense) income, net. Additionally, in the case that the hedged forecasted fuel consumption is not probable of occurring in the originally specified time period or within the following two months, the related accumulated other comprehensive gain or loss associated with the hedge is reclassified to other (expense) income, net immediately. We recorded a gain of $0.8 million during the quarter ended September 25, 2020 and $0.3 million during the nine months ended September 25, 2020 related to our dedesignated cash flow hedges in other (expense) income, net.

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 September 25, 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:	September 25, 2020		December 27, 2019		September 25, 2020		December 27, 2019		September 25, 2020		December 27, 2019		September 25, 2020		December 27, 2019
Asset derivatives:
Prepaid expenses and other current assets	$	1.3	$	1.7	$	0.4	$	—	$	—	$	—	$	1.7	$	1.7
Total asset derivatives	$	1.3	$	1.7	$	0.4	$	—	$	—	$	—	$	1.7	$	1.7
Liability derivatives:
Accounts payable and accrued expenses	$	4.1	$	0.7	$	1.1	$	—	$	—	$	—	$	5.2	$	0.7
Other noncurrent liabilities	—		—		0.9		—		55.1		30.3		56.0		30.3
Total liability derivatives	$	4.1	$	0.7	$	2.0	$	—	$	55.1	$	30.3	$	61.2	$	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 designated in hedging relationships on the Consolidated Statements of Operations for the quarters and nine months ended September 25, 2020 and September 27, 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
	September 25, 2020		September 27, 2019			September 25, 2020		September 27, 2019
Foreign exchange contracts	$	(1.8)	$	1.9	Net sales	$	(3.6)	$	2.4
Foreign exchange contracts	(0.2)		—		Cost of products sold	(0.1)		0.5
Bunker fuel swaps	0.9		—		Cost of products sold	0.2		—
Interest rate swaps, net of tax	1.4		(7.3)		Interest expense	(2.8)		(0.6)
Total	$	0.3	$	(5.4)	Total	$	(6.3)	$	2.3
	Nine months ended					Nine months ended
	September 25, 2020		September 27, 2019			September 25, 2020		September 27, 2019
Foreign exchange contracts	$	(3.5)	$	3.0	Net sales	$	(0.9)	$	4.9
Foreign exchange contracts	(0.3)		0.7		Cost of products sold	0.4		1.1
Bunker fuel swaps	(1.3)		—		Cost of products sold	(1.0)		—
Interest rate swaps, net of tax	(21.8)		(28.7)		Interest expense	(6.3)		(1.4)
Total	$	(26.9)	$	(25.0)	Total	$	(7.8)	$	4.6