Derivatives (Tables)

6 Months Ended

Jul. 02, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

All of these transactions are currently not designated for hedge accounting (in thousands):

Functional Currency		Contract Currency
Type	Amount	Type	Amount
Brazilian real	33,438	Euro	7,650
Brazilian real	81,823	U.S. dollar	20,975
Euro	231,536	U.S. dollar	264,696
Euro	10,761	Polish zloty	47,000
Euro	2,351	Japanese yen	291,389
Euro	34,263	Chinese renminbi	254,639
Euro	10,286	Australian dollar	15,900
Polish zloty	19,974	Euro	4,522
Japanese yen	21,775	U.S. dollar	184

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value of the Company’s derivative instruments under FASB authoritative guidance as of July 2, 2016 and January 2, 2016 (in thousands):

Derivatives Designated	Balance Sheet	Asset Derivatives Fair Value
as Hedges	Location	July 2, 2016		January 2, 2016
Corn options	Other current assets	$	4,554	$	3,215
Total asset derivatives designated as hedges		$	4,554	$	3,215
Derivatives Not Designated as Hedges
Foreign currency contracts	Other current assets	$	11,888	$	644
Corn options and futures	Other current assets	1,244		599
Total asset derivatives not designated as hedges		$	13,132	$	1,243
Total asset derivatives		$	17,686	$	4,458

	Balance Sheet	Liability Derivatives Fair Value
	Location	July 2, 2016		January 2, 2016
Derivatives Not Designated as Hedges
Foreign currency contracts	Accrued expenses	$	975	$	4,435
Heating oil swaps and options	Accrued expenses	49		—
Corn options and futures	Accrued expenses	454		2
Total liability derivatives not designated as hedges		$	1,478	$	4,437
Total liability derivatives		$	1,478	$	4,437

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The effect of the Company’s derivative instruments on the consolidated financial statements as of and for the three months ended July 2, 2016 and July 4, 2015 is as follows (in thousands):

Derivatives Designated as Cash Flow Hedges	Gain or (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivatives (Effective Portion) (a)					Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (b)				Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c)
	2016		2015			2016		2015		2016		2015
Corn options	$	2,875	$	(1,819	)	$	869	$	347	$	162	$	(672	)
Total	$	2,875	$	(1,819	)	$	869	$	347	$	162	$	(672	)

(a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive income/(loss) of approximately $2.9 million and $(1.8) million recorded net of taxes of approximately $(1.1) million and $0.7 million as of July 2, 2016 and July 4, 2015, respectively.

(b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for corn options are included in cost of sales, respectively, in the Company’s consolidated statements of operations.

(c) Gains and (losses) recognized in income on derivatives (ineffective portion) for corn options are included in other income/ (expense), net in the Company’s consolidated statements of operations.

The effect of the Company’s derivative instruments on the consolidated financial statements as of and for the six months ended July 2, 2016 and July 4, 2015 is as follows (in thousands):

Derivatives Designated as Cash Flow Hedges	Gain or (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivatives (Effective Portion) (a)					Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (b)				Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c)
	2016		2015			2016		2015		2016		2015
Corn options	$	3,195	$	(1,523	)	$	2,343	$	581	$	214	$	(727	)
Total	$	3,195	$	(1,523	)	$	2,343	$	581	$	214	$	(727	)

(a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive income/(loss) of approximately $3.2 million and $(1.5) million recorded net of taxes of approximately $(1.2) million and $0.6 million as of July 2, 2016 and July 4, 2015, respectively.

(b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for corn options are included in cost of sales, respectively, in the Company’s consolidated statements of operations.

(c) Gains and (losses) recognized in income on derivatives (ineffective portion) for corn options are included in other income/ (expense), net in the Company’s consolidated statements of operations.

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the three and six months months ended July 2, 2016 and July 4, 2015 (in thousands):

		Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges
		Three Months Ended						Six Months Ended
Derivatives not designated as hedging instruments	Location	July 2, 2016			July 4, 2015			July 2, 2016			July 4, 2015
Foreign Exchange	Foreign currency loss/(gain)	$	(7,204	)	$	1,637		$	4,083		$	(21,407	)
Foreign Exchange	Selling, general and administrative expense	(3,868		)	(348		)	(6,779		)	2,991
Corn options and futures	Net sales	344			81			345			70
Corn options and futures	Cost of sales and operating expenses	(81		)	633			(613		)	378
Heating Oil swaps and options	Net sales	226			—			153			—
Heating Oil swaps and options	Cost of sales and operating expenses	—			35			—			130
Soybean Meal	Net sales	7			—			7			—
Total		$	(10,576	)	$	2,038		$	(2,804	)	$	(17,838	)