XML 38 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Instruments (Notes)
 9 Months Ended
Sep. 26, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Not Designated as Hedging Instruments [Table Text Block]
Gains (losses) associated with derivative instruments not designated as hedging instruments are as follows (in thousands):
Three Months EndedNine Months Ended
ClassificationSeptember 26, 2020September 28, 2019September 26, 2020September 28, 2019
Gain (loss) recognized in incomeOther income, net$(2,232)$852 $(3,475)$200 
Derivative Instruments and Hedging Activities Disclosure [Text Block] Derivative InstrumentsThe Company operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The foreign currency exposures typically arise from transactions denominated in currencies other than the functional currency of the Company's operations, primarily the British Pound, Canadian Dollar, Euro and Japanese Yen. The Company uses derivative instruments that are designated in cash flow hedge relationships to reduce or eliminate the effects of foreign exchange rate changes on sales. These contracts typically have maturities of thirty-seven months or less. At September 26, 2020 and December 28, 2019, the Company had outstanding cash flow hedges with a total notional value of $430.2 million and $424.6 million, respectively.
The Company also enters into economic hedges that are not designated as hedges from an accounting standpoint to reduce or eliminate the effects of foreign exchange rate changes typically related to short term trade receivables and payables. These contracts typically have maturities of twelve months or less. At September 26, 2020 and December 28, 2019, the Company had outstanding foreign currency economic hedges with a total notional value of $26.8 million and $58.4 million, respectively.
As described in Note 2, during July 2020, the Company entered into a forward sale contract as an economic hedge to reduce the Company's exposure to stock price fluctuations on its marketable equity securities. The contract has a maturity date of January 2021. At September 26, 2020, the total notional value of this economic hedge was $51.5 million.
The fair values of derivative instruments are as follows (in thousands):
Fair Value
ClassificationSeptember 26, 2020December 28, 2019
Derivatives not designated as hedging instruments:
Foreign currency forward contractsOther current assets$724 $1,855 
Foreign currency forward contractsAccrued expenses1,177 297 
Forward sale contractAccrued expenses626 — 
Derivatives designated as cash flow hedges:
Foreign currency forward contractsOther current assets$2,781 $4,347 
Foreign currency forward contractsOther assets3,136 9,112 
Foreign currency forward contractsAccrued expenses435 47 
Foreign currency forward contractsLong-term liabilities3,689 414 

Gains (losses) associated with derivative instruments not designated as hedging instruments are as follows (in thousands):
Three Months EndedNine Months Ended
ClassificationSeptember 26, 2020September 28, 2019September 26, 2020September 28, 2019
Gain (loss) recognized in incomeOther income, net$(2,232)$852 $(3,475)$200 

The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands): 
Gain (loss) recognized in OCI on Derivative (1)
Three Months EndedNine Months Ended
September 26, 2020September 28, 2019September 26, 2020September 28, 2019
Foreign currency forward contracts$(11,230)$10,905 $(7,177)$15,254 
(1)The amount represents the change in fair value of derivative contracts due to changes in spot rates.
Gain (loss) recognized in earnings on cash flow hedging instruments
Three Months EndedNine Months Ended
September 26, 2020September 28, 2019September 26, 2020September 28, 2019
RevenueRevenue
Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded$413,145 $289,399 $885,563 $787,232 
Gain (loss) on cash flow hedging relationships:
Foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings$993 $185 $4,711 $400