FOREIGN CURRENCY CONTRACTS

12 Months Ended

Dec. 25, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Cross Currency Loans

The Company periodically enters into foreign exchange forward contracts to limit its foreign currency exposure related to U.S. dollar denominated loans borrowed by a non-U.S. Euro functional currency entity under the Company’s Credit Facility. These contracts are not designated as hedging instruments. Any gains or losses on these forward contracts are recognized immediately within Interest expense in the consolidated statements of income. The Company had no such open forward contracts as of December 25, 2021 or December 26, 2020.

The following table summarizes the effect of the foreign exchange forward contracts entered into to limit the Company’s foreign currency exposure related to U.S. dollar denominated loans borrowed by a non-U.S. Euro functional currency entity under the Credit Facility on the Company’s consolidated statements of income:


	Fiscal Year
	2021				2020				2019
Location of gain (loss)	Financial statement caption amount		Amount of gain (loss)		Financial statement caption amount		Amount of gain (loss)		Financial statement caption amount		Amount of gain (loss)
	(in thousands)
Interest expense	$	73,910	$	34,131	$	86,433	$	(9,325)	$	60,882	$	18,672

Intercompany Loans

The Company periodically enters into foreign exchange forward contracts to limit its foreign currency exposure related to certain intercompany loans. These contracts are not designated as hedging instruments. Any gains or losses on forward contracts associated with intercompany loans are recognized immediately in Other (expense) income, net and are largely offset by the remeasurement of the underlying intercompany loans.

The Company entered into foreign currency forward contracts related to certain intercompany loans during fiscal years 2021 and 2020. The Company had one open forward contracts as of December 25, 2021, with a duration of three months and was recorded at fair value in the Company’s accompanying consolidated balance sheet. The Company did not have any such open contracts as of December 26, 2020. The notional amount and fair value of the open contract is summarized as follows:


December 25, 2021
Notional Amount		Fair Value		Balance Sheet Location
(in thousands)
$	39,211	$	(141)	Other current liabilities

The Company had settled foreign currency forward contract related to certain intercompany loans during fiscal years 2021, 2020 and 2019, and recognized losses in Other (expense) income, net in the consolidated statement of income.

The following table summarizes the effect of the foreign exchange forward contracts in connection with certain intercompany loans on the Company’s consolidated statements of income:


	Fiscal Year
	2021				2020				2019
Location of gain (loss)	Financial statement caption amount		Amount of gain (loss)		Financial statement caption amount		Amount of gain (loss)		Financial statement caption amount		Amount of gain (loss)
	(in thousands)
Other (expense) income, net	$	(35,894)	$	(1,599)	$	99,984	$	(892)	$	12,293	$	(121)