Derivative Financial Instruments

3 Months Ended

Mar. 26, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company’s derivative portfolio consists of forward exchange contracts. Derivative financial instruments are recognized on the Condensed Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair values of derivatives are recorded each period in earnings. As of March 26, 2023, the Company did not use hedge accounting. The Company did not have any forward exchange contracts at March 27, 2022. The notional value of the Company’s foreign exchange contracts at March 26, 2023, was $19.5 million. At March 26, 2023, the fair value amounts of the forward exchange contracts were a $0.6 million asset and a $0.7 million liability. The net gain from these derivative instruments of $0.1 million is included in other income (expense) for the three months ended March 26, 2023. The notional value of the Company’s foreign currency forward contracts at December 25, 2022, was $10.2 million. At December 25, 2022, the fair value amounts of the forward exchange contracts were a $0.1 million asset and a $0.3 million liability.