DERIVATIVE INSTRUMENTS

6 Months Ended

Jul. 02, 2016

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

12.    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 2, 2016, the Company had forward contracts maturing through September 2017 to sell 2.1 billion yen for $19.2 million. The Company also had option contracts maturing through December 2016 to sell 1.3 billion yen for $11.6 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 2, 2016, the Company had forward contracts to sell 5.1 billion yen for $49.0 million maturing through September 2016. Transaction (losses) gains of $(6.2) million and $0.7 million related to these derivative instruments were reflected within Other expense, net for the six months ended July 2, 2016 and July 4, 2015, respectively, and $(3.1) million and $1.1 million for the three months ended July 2, 2106 and July 4, 2015, 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
	Balance Sheet	Notional				Balance Sheet	Notional
Period	Location	Amount		Fair Value		Location	Amount		Fair Value
July 2, 2016	Other current assets	$	11,637	$	8	Accrued expenses	$	19,200	$	1,924
January 2, 2016	Other current assets		26,612		1,017	Accrued expenses		—		—
July 4, 2015	Other current assets		42,012		2,770	Accrued expenses		3,000		57

	Foreign Currency Contracts Not Designated as Hedging Instruments
In thousands	Asset Derivatives					Liability Derivatives
	Balance Sheet	Notional				Balance Sheet	Notional
Period	Location	Amount		Fair Value		Location	Amount		Fair Value
July 2, 2016	Othercurrent assets	$	—	$	—	Accrued expenses	$	48,964	$	892
January 2, 2016	Other current assets		—		—	Accrued expenses		42,156		354
July 4, 2015	Other current assets		—		—	Accrued expenses		32,234		342

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

			Location of Gain or
	Amount of Gain or		(Loss) Reclassified	Amount of Gain or		Amount of Gain or
	(Loss) Recognized		from Accumulated	(Loss) Reclassified		(Loss) Recognized in
	inAccumulated		OCI into Operations	from Accumulated		Operations on
	OCIon Derivative		(Effective and	OCI into Operations		Derivative
In thousands	(Effective Portion)		Ineffective Portion)	(Effective Portion)		(Ineffective Portion)
Six Months Ended July 2, 2016 (26 Weeks)	$	(2,818)	Cost of goods sold	$	407	$	—
Six Months Ended July 4, 2015 (26 Weeks)		(792)	Cost of goods sold		342		—
Three Months Ended July 2, 2016 (13 Weeks)		(1,694)	Cost of goods sold		63		—
Three Months Ended July 4, 2015 (13 Weeks)		(213)	Cost of goods sold		(199)		—