Financial Instruments Measured at Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Financial Instruments Measured at Fair Value

Schedule of assets measured at fair value on a recurring basis

(thousands)	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Cash equivalents (a)	Cash and cash equivalents	$	9,954	$	—	$	—	$	9,954
Equity investments (b)	Other assets		47,482		—		—		47,482
Interest rate swap designated as fair value hedge	Other liabilities		—		(2,043)		—		(2,043)
Foreign exchange contracts designated as net investment hedges	Other assets/other current assets		—		55,369		—		55,369
		$	57,436	$	53,326	$	—	$	110,762

(thousands)	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Cash equivalents (a)	Cash and cash equivalents/other assets	$	6,596	$	—	$	—	$	6,596
Equity investments (b)	Other assets		50,614		—		—		50,614
Interest rate swaps designated as cash flow hedges	Other assets		—		55,942		—		55,942
Foreign exchange contracts designated as net investment hedges	Other assets/other current assets		—		60,962		—		60,962
		$	57,210	$	116,904	$	—	$	174,114

(a) Cash equivalents include highly liquid investments with an original maturity of less than three months.

(b) The company has an 8.4% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded an unrealized (loss) gain of ($4.2) million and $1.6 million for the third quarter and first nine months of 2023, respectively, on equity securities held at the end of the quarter. The company recorded an unrealized loss of ($2.1) million and ($12.4) million for the third quarter and first nine months of 2022, respectively, on equity securities held at the end of the quarter.

Schedule of effects of derivative instruments on the company's consolidated statements of operations and other comprehensive income

		Quarter Ended				Nine Months Ended
		September 30,		October 1,		September 30,		October 1,
(thousands)	Income Statement Line	2023		2022		2023		2022
Gain (Loss) Recognized in Income
Foreign exchange contracts, net investment hedge (a)	Interest Expense	$	1,804	$	2,202	$	5,656	$	6,604
Interest rate swaps, cash flow hedge	Interest Expense		(683)		(906)		(2,199)		(2,671)
Interest rate swap, fair value hedge (b)	Interest Expense		(247)		—		(2,043)		—
Total		$	874	$	1,296	$	1,414	$	3,933
Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax
Foreign exchange contracts, net investment hedge (c)		$	5,448	$	13,016	$	3,902	$	30,031
Interest rate swaps, cash flow hedge			—		6,616		585		25,161
Total		$	5,448	$	19,632	$	4,487	$	55,192

(a) Represents derivative amounts excluded from the assessment of effectiveness for the net investment hedges reclassified from CTA to “Interest and other financing expenses, net”.

(b) The amount of fair value hedging adjustments to the carrying value of hedged debt instruments totaled a gain of $0.2 million and $1.1 million for the third quarter and first nine months of 2023, respectively.

(c) Includes derivative losses of $0.9 million and $1.0 million for the third quarter of 2023 and 2022, respectively, and $4.3 million and $3.5 million for the first nine months of 2023 and 2022, respectively, which were excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income (loss), net of tax.

Interest rate swap | Designated as hedging instrument

Financial Instruments Measured at Fair Value

Description of types of hedging instruments used

		Notional Amount		Weighted-Average	Date Range of
Trade Date	Maturity Date	(thousands)		Interest Rate	Forecasted Transaction
April 2020	December 2024	$	300,000	0.97%	Jan 2023 - Dec 2025

		Notional Amount		Interest Rate due	Interest Rate due to
Trade Date	Maturity Date	(thousands)		from Counterparty	Counterparty
February 2023	March 2026	$	500,000	6.125%	SOFR+0.508%

Foreign exchange contract | Designated as hedging instrument

Financial Instruments Measured at Fair Value

Description of types of hedging instruments used

	Notional Amount (thousands)
Maturity Date	September 30, 2023		December 31, 2022
March 2023	EUR	—	EUR	50,000
September 2024	EUR	50,000	EUR	50,000
April 2025	EUR	100,000	EUR	100,000
January 2028	EUR	100,000	EUR	100,000
Total	EUR	250,000	EUR	300,000