Financial Instruments Measured at Fair Value (Tables)

6 Months Ended

Jun. 29, 2024

Financial Instruments Measured at Fair Value

Schedule of assets (liabilities) 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	$	9,028	$	—	$	—	$	9,028
Equity investments (b)	Other assets		46,881		—		—		46,881
Foreign exchange contracts designated as net investment hedges	Other assets / other current assets		—		57,393		—		57,393
		$	55,909	$	57,393	$	—	$	113,302

(thousands)	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Cash equivalents (a)	Cash and cash equivalents	$	8,729	$	—	$	—	$	8,729
Equity investments (b)	Other assets		57,625		—		—		57,625
Interest rate swap designated as fair value hedge	Other liabilities		—		(454)		—		(454)
Foreign exchange contracts designated as net investment hedges	Other assets / other current assets		—		47,245		—		47,245
		$	66,354	$	46,791	$	—	$	113,145

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

(b) The company has an approximately 9% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded unrealized (losses) gains of ($6.7) million and ($10.3) million for the second quarter and first six months of 2024, respectively, on equity securities held at the end of the quarter. The company recorded unrealized (losses) gains of ($2.5) million and $6.0 million for the second quarter and first six months of 2023, 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				Six Months Ended
		June 29,		July 1,		June 29,		July 1,
(thousands)	Income Statement Line	2024		2023		2024		2023
Gain (Loss) Recognized in Income
Foreign exchange contracts, net investment hedge (a)	Interest Expense	$	1,804	$	1,804	$	3,608	$	3,852
Interest rate swaps, cash flow hedge	Interest Expense		297		(677)		(398)		(1,516)
Interest rate swap, fair value hedge (b)	Interest Expense		—		(4,538)		454		(1,796)
Total		$	2,101	$	(3,411)	$	3,664	$	540
Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax
Foreign exchange contracts, net investment hedge (c)		$	2,750	$	(2,671)	$	7,720	$	(1,546)
Interest rate swaps, cash flow hedge			—		4,932		—		585
Total		$	2,750	$	2,261	$	7,720	$	(961)

(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 cumulative amount of fair value hedging adjustments to the carrying value of hedged debt instruments totaled a loss of $0.4 million for the first six months of 2024, and a gain of $3.4 million and $0.9 million for the second quarter and first six months of 2023, respectively.

(c) Includes derivative gains (losses) of $1.3 million and $1.4 million for the second quarter and first six months of 2024, respectively, and ($1.6) million and ($3.4) million for the second quarter and first six months of 2023, 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		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

Maturity Date	Notional Amount (thousands)
September 2024	EUR	50,000
April 2025	EUR	100,000
January 2028	EUR	100,000
Total	EUR	250,000