DERIVATIVE INSTRUMENTS

3 Months Ended

Apr. 01, 2017

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

11.    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 businesses in Japan and Canada. As of April 1, 2017, the Company had forward contracts to sell 2.8 billion yen for $25.9 million maturing through June 2018 and 17.6 million Canadian dollars for $13.3 million maturing through April 2018.

The Company uses foreign currency forward contracts outside the cash flow hedging program to manage currency risk associated with intercompany loans. As of April 1, 2017, the Company had forward contracts to sell 5.1 billion yen for $45.8 million maturing through June 2017, 14.0 million Euro for $15.1 million maturing through June 2017, 8.0 million British pounds for $10.0 million maturing through June 2017, 5.0 million British pounds for 5.8 million Euro through June 2017, and 5.3 million Canadian dollars for $4.0 million maturing through June 2017. Transaction losses of $2.6 million and $3.1 million related to these derivative instruments were reflected within Other income (expense), net for the three months ended April 1, 2017 and April 2, 2016, 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
April 1, 2017	Other current assets	$	23,300	$	1,176	Accrued expenses	$	15,900	$	187
December 31, 2016	Other current assets		40,300		2,388	Accrued expenses		1,600		5
April 2, 2016	Other current assets		17,432		137	Accrued expenses		16,918		680

	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
April 1, 2017	Othercurrent assets	$	15,145	$	132	Accrued expenses	$	65,938	$	336
December 31, 2016	Other current assets		11,500		11	Accrued expenses		43,439		408
April 2, 2016	Other current assets		—		—	Accrued expenses		45,459		287

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)
Three Months Ended April 1, 2017 (13 Weeks)	$	(841)	Cost of goods sold	$	(447)	$	—
Three Months Ended April 2, 2016 (13 Weeks)		(1,124)	Cost of goods sold		344		—