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Derivative Financial Instruments | 3 Months Ended
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Mar. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses foreign currency forward and option contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales and other cross-border transactions not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars, and Euros. All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a default by a single counterparty would not have a material adverse effect on the financial condition of the Company. The Company does not enter into derivative financial instruments for speculative purposes. Cash Flow Hedges All of the Company's designated foreign currency forward contracts are considered to be cash flow hedges. These instruments hedge a portion of the Company's currency requirements associated with anticipated inventory purchases, product sales and other cross-border transactions, primarily for the remainder of 2025, and into 2026. The notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:
| March 30, 2025 |  | March 31, 2024 |  | December 29, 2024
Hedged transaction | Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Inventory purchases | $ | 194.8 |  |  | $ | 2.6 |  |  | $ | 151.2 |  |  | $ | 0.3 |  |  | $ | 131.5 |  |  | $ | 8.0 |
Sales | 144.4 |  |  | (1.2) |  |  | 75.3 |  |  | (0.2) |  |  | 86.0 |  |  | (1.4) |
Other | 29.1 |  |  | 0.6 |  |  | 30.7 |  |  | (1.1) |  |  | 22.8 |  |  | 0.9 |
Total | $ | 368.3 |  |  | $ | 2.0 |  |  | $ | 257.2 |  |  | $ | (1.0) |  |  | $ | 240.3 |  |  | $ | 7.5 |
The Company has a master agreement with each of its counterparties that allows for the netting of outstanding forward contracts. The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the Consolidated Balance Sheets as follows:
| March 30, 2025 |  | March 31, 2024 |  | December 29, 2024
Prepaid expenses and other current assets |  |  |  |  |
Unrealized gains | $ | 5.0 |  |  | $ | 2.4 |  |  | $ | 9.1 |
Unrealized losses | (1.3) |  |  | (0.8) |  |  | (1.1) |
Net unrealized gains | $ | 3.7 |  |  | $ | 1.6 |  |  | $ | 8.0 |
Other assets |  |  |  |  |
Unrealized gains | $ | — |  |  | $ | 0.1 |  |  | $ | — |
Net unrealized gains | $ | — |  |  | $ | 0.1 |  |  | $ | — |
Accrued liabilities |  |  |  |  |
Unrealized gains | $ | 0.8 |  |  | $ | 1.4 |  |  | $ | 0.5 |
Unrealized losses | (1.4) |  |  | (4.1) |  |  | (1.0) |
Net unrealized losses | $ | (0.6) |  |  | $ | (2.7) |  |  | $ | (0.5) |
Other liabilities |  |  |  |  |
Unrealized gains | $ | 0.2 |  |  | $ | — |  |  | $ | — |
Unrealized losses | (1.3) |  |  | — |  |  | — |
Net unrealized losses | $ | (1.1) |  |  | $ | — |  |  | $ | — |
Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings as follows:
| Three Months Ended |  |
| March 30, 2025 |  | March 31, 2024 |  |  |  |
Statements of Operations Classification |  |  |  |  |  |  |
Cost of sales | $ | 1.1 |  |  | $ | 0.1 |  |  |  |  |
Net revenues | (0.3) |  |  | (0.1) |  |  |  |  |
Other | 0.1 |  |  | (0.1) |  |  |  |  |
Net realized gains (losses) | $ | 0.9 |  |  | $ | (0.1) |  |  |  |  |
Undesignated Hedges The Company also enters into foreign currency forward contracts to minimize the impact of changes in the fair value of intercompany loans due to foreign currency changes. The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are substantially offset by changes in the fair value of the intercompany loans. As of March 30, 2025, March 31, 2024 and December 29, 2024, the total notional amounts of the Company's undesignated derivative instruments were $263.2 million, $328.6 million, and $289.6 million, respectively. The fair values of the Company's undesignated derivative financial instruments were recorded in the Consolidated Balance Sheets as follows:
| March 30, 2025 |  | March 31, 2024 |  | December 29, 2024
Prepaid expenses and other current assets |  |  |  |  |
Unrealized gains | $ | 1.7 |  |  | $ | 7.0 |  |  | $ | 1.9 |
Unrealized losses | (0.5) |  |  | (0.2) |  |  | (0.2) |
Net unrealized gains | $ | 1.2 |  |  | $ | 6.8 |  |  | $ | 1.7 |
Accrued liabilities |  |  |  |  |
Unrealized gains | $ | — |  |  | $ | — |  |  | $ | — |
Unrealized losses | (0.3) |  |  | (0.2) |  |  | (1.2) |
Net unrealized losses | $ | (0.3) |  |  | $ | (0.2) |  |  | $ | (1.2) |
The Company recorded a net gain of $2.2 million and $9.1 million for three months ended March 30, 2025 and March 31, 2024, respectively, on these instruments to Other (income) expense, net relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate. For additional information related to the Company's derivative financial instruments (see Note 6, Other Comprehensive Earnings (Loss) and Note 11, Fair Value of Financial Instruments).

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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