DERIVATIVE INSTRUMENTS

6 Months Ended

Jul. 04, 2015

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

16.     DERIVATIVE INSTRUMENTS

In order to reduce exposures related to changes in foreign currency exchange rates, the Company uses forward contracts and options and may utilize foreign currency collars and swap contracts for the purpose of hedging the specific exposure to variability in forecasted cash flows associated primarily with inventory purchases mainly by its business in Japan. As of July 4, 2015, the Company had forward contracts maturing through June 2016 to sell 2.8 billion yen for $24.3 million. The Company also had option contracts maturing through December 2016 to sell 2.4 billion yen for $20.7 million.

The Company uses foreign currency forward contracts outside the cash flow hedging program to manage currency risk associated with intercompany loans. As of July 4, 2015, the Company had forward contracts to sell 4.0 billion yen for $32.2 million maturing through September 2015. Transaction gains (losses) of $0.7 million and $(1.1) million related to these derivative instruments were reflected within Other (expense) income, net for the six months ended July 4, 2015 and July 5, 2014, respectively, and $1.1 million and $(0.5) million for the three months ended July 4, 2015 and July 5, 2014, respectively.

The following table summarizes the fair value and presentation in the Condensed Consolidated Financial Statements for derivatives designated as hedging instruments and derivatives not designated as hedging instruments:

	Foreign Currency Contracts Designated as Hedging Instruments
In thousands	Asset Derivatives				Liability Derivatives
Period	Balance Sheet Location	Notional Amount		Fair Value	Balance Sheet Location	Notional Amount		Fair Value
July 4, 2015	Other current assets	$	42,012	$    2,770	Accrued expenses	$	3,000	$	57
January 3, 2015	Other current assets	39,100		3,066	Accrued expenses	--		--
July 5, 2014	Other current assets	16,550		258	Accrued expenses	6,950		129

	Foreign Currency Contracts Not Designated as Hedging Instruments
In thousands	Asset Derivatives				Liability Derivatives
Period	Balance Sheet Location	Notional Amount		Fair Value	Balance Sheet Location	Notional Amount		Fair Value
July 4, 2015	Other current assets	$	--	$          --	Accrued expenses	$	32,234	$	342
January 3, 2015	Other current assets	33,350		127	Accrued expenses	--		--
July 5, 2014	Other current assets	39,342		178	Accrued expenses	--		--

The following table summarizes the effect of foreign currency exchange contracts designated as hedging instruments on the Condensed Consolidated Financial Statements:

In thousands	Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion)			Location of Gain or (Loss) Reclassified from Accumulated OCI into Operations (Effective and Ineffective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Operations (Effective Portion)			Amount Recognized in Operations on Derivative (Ineffective Portion)
Six months ended July 4, 2015	$	(792	)	Cost of goods sold	$	342		$	--
Six months ended July 5, 2014	(392		)	Cost of goods sold	789			--
Three months ended July 4, 2015	(213		)	Cost of goods sold	(199		)	--
Three months ended July 5, 2014	(165		)	Cost of goods sold	404			--