XML 69 R42.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 29, 2019
Financial Instruments [Abstract]  
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [text block]
Hedging components of other comprehensive income (“OCI”):
 
2019

 
2018

 
 
 
 
Net gain (loss) on derivatives designated as cash flow hedges:
 
 
 
      Foreign currency risk
$
4,566

 
$
6,740

      Commodity price risk
(8,213
)
 
698

      Interest rate risk
(10,588
)
 
102

 
 
 
 
Income taxes
(46
)
 
(67
)
 
 
 
 
Amounts reclassified from OCI to inventory, related to commodity
  price risk
16,656

 
(13,303
)
 
 
 
 
Amounts reclassified from OCI to net earnings, related to foreign currency risk and interest rate risk, and included in:
 
 
 
      Net sales
(5,667
)
 
(1,864
)
      Cost of sales
(350
)
 
(307
)
      Selling, general and administrative expenses
417

 
51

      Financial expenses, net
(752
)
 
(2,224
)
      Income taxes
60

 
16

Cash flow hedging loss
$
(3,917
)
 
$
(10,158
)
Disclosure of detailed information about financial instruments
The carrying amounts and fair values of financial assets and liabilities included in the consolidated statements of financial position are as follows:
 
December 29, 2019

 
December 30, 2018

 
 
 
 
 
 
Financial assets
 
 
 
Amortized cost:
 
 
 
    Cash and cash equivalents
$
64,126

 
$
46,657

    Trade accounts receivable
320,931

 
317,159

    Financial assets included in prepaid expenses, deposits and other current assets
45,950

 
39,789

    Long-term non-trade receivables included in other non-current assets
2,933

 
2,771

Derivative financial assets included in prepaid expenses, deposits and other current assets
9,816

 
17,792

 
 
 
 
Financial liabilities
 
 
 
Amortized cost:
 
 
 
    Accounts payable and accrued liabilities (1)
$
395,564

 
$
332,543

    Long-term debt - bearing interest at variable rates
645,000

 
469,000

    Long-term debt - bearing interest at fixed rates (2)
200,000

 
200,000

Derivative financial liabilities included in accounts payable and accrued liabilities
11,067

 
14,442

(1) Accounts payable and accrued liabilities include balances payable of $39.6 million (December 30, 2018 - $33.0 million) under supply-chain financing arrangements (reverse factoring) with a financial institution, whereby receivables due from the Company to certain suppliers can be collected by the suppliers from a financial institution before their original due date. These balances are classified as accounts payable and accrued liabilities and the related payments as cash flows from operating activities, given the principal business purpose of the arrangement is to provide funding to the supplier and not the Company, the arrangement does not significantly extend the payment terms beyond the normal terms agreed with other suppliers, and no additional deferral or special guarantees to secure the payments are included in the arrangement.
(2) The fair value of the long-term debt bearing interest at fixed rates was $206.4 million as at December 29, 2019 (December 30, 2018 - $189.5 million).

Disclosure of detailed information about hedging instruments
The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at December 29, 2019:
 
 
 
 
 
 
 
Carrying and fair value
 
Maturity
 
 
Notional foreign
 
Average
 
Notional
 
Prepaid expenses,
 
Accounts
 
 
 
 
 
currency amount
 
 exchange
 
 U.S. $
 
deposits and other
 
payable and
 
 
0 to 12

 
equivalent
 
rate
 
equivalent
 
current assets
 
accrued liabilities
 
 
months

 
 
 
 
 
 
 
 
 
 
 
 
 
Forward foreign exchange contracts:
 
 
 
 
 
 
 
 
 
 
 
Sell GBP/Buy USD
 
32,737

 
1.2750

 
$
41,739

 
$
187

 
$
(1,169
)
 
$
(982
)
 
Sell EUR/Buy USD
 
35,236

 
1.1341

 
39,960

 
502

 
(78
)
 
424

 
Sell CAD/Buy USD
 
58,212

 
0.7612

 
44,309

 
49

 
(130
)
 
(81
)
 
Buy CAD/Sell USD
 
31,287

 
0.7514

 
23,510

 
342

 
—

 
342

 
Sell AUD/Buy USD
 
7,691

 
0.6974

 
5,364

 
38

 
(32
)
 
6

 
Sell MXN/Buy USD
 
272,914

 
0.0504

 
13,761

 
—

 
(356
)
 
(356
)
 
 
 

 
 
 
$
168,643

 
$
1,118

 
$
(1,765
)
 
$
(647
)


The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at December 30, 2018:
 
 
 
 
 
 
 
Carrying and fair value
 
Maturity
 
 
Notional foreign
 
Average
 
Notional
 
Prepaid expenses,
 
Accounts
 
 
 
 
 
currency amount
 
 exchange
 
 U.S. $
 
deposits and other
 
payable and
 
 
0 to 12

 
equivalent
 
rate
 
equivalent
 
current assets
 
accrued liabilities
 
 
months

 
 
 
 
 
 
 
 
 
 
 
 
 
Forward foreign exchange contracts:
 
 
 
 
 
 
 
 
 
 
 
Sell GBP/Buy USD
 
28,510

 
1.3224

 
$
37,703

 
$
1,366

 
$
—

 
$
1,366

 
Sell EUR/Buy USD
 
31,578

 
1.1892

 
37,551

 
1,004

 
(19
)
 
985

 
Sell CAD/Buy USD
 
33,114

 
0.7784

 
25,776

 
1,369

 
—

 
1,369

 
Buy CAD/Sell USD
 
62,921

 
0.7583

 
47,712

 
—

 
(1,180
)
 
(1,180
)
 
Sell AUD/Buy USD
 
7,941

 
0.7304

 
5,800

 
198

 
—

 
198

 
Buy MXN/Sell USD
 
79,275

 
0.0475

 
3,766

 
162

 
—

 
162

 
 
 
 
 
 
 
$
158,308

 
$
4,099

 
$
(1,199
)
 
$
2,900

The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at December 29, 2019:
 
 
 
 
Carrying and fair value
 
Maturity
 
 
 
 
 
Prepaid expenses,
 
Accounts
 
 
 
 
Type of
 
 
 
deposits and other
 
payable and
 
 
0 to 12

 
commodity
Notional amount (1)
 
current assets
 
accrued liabilities
 
 
months

 
 
 
 
 
 
 
 
 
 
 
Forward contracts
Cotton
133.7 million pounds
 
 
$
3,494

 
$
(198
)
 
$
3,296

Swap contracts
Synthetic fibres
60.6 million pounds
 
 
—

 
(6,859
)
 
(6,859
)
Swap & option contracts
Energy
202,400 barrels
 
 
1,185

 
(186
)
 
999

 
 
 
 
 
 
$
4,679

 
$
(7,243
)
 
$
(2,564
)
(1) Notional amounts are not in thousands.

The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at December 30, 2018:
 
 
 
 
Carrying and fair value
 
Maturity
 
 
 
 
 
Prepaid expenses,
 
Accounts
 
 
 
 
Type of
 
 
 
deposits and other
 
payable and
 
 
0 to 12

 
commodity
Notional amount (1)
 
current assets
 
accrued liabilities
 
 
months

 
 
 
 
 
 
 
 
 
 
 
Forward contracts
Cotton
76.0 million pounds
 
 
$
336

 
$
(3,173
)
 
$
(2,837
)
Swap contracts
Synthetic fibres
147.7 million pounds
 
 
—

 
(5,516
)
 
(5,516
)
Swap & option contracts
Energy
290,000 barrels
 
 
145

 
(2,469
)
 
(2,324
)
 
 
 
 
 
 
$
481

 
$
(11,158
)
 
$
(10,677
)
(1) Notional amounts are not in thousands.
The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at December 29, 2019:
 
 
 
 
 
 
Carrying and fair value
 
Notional

 
 
 
 
Prepaid expenses,
 
Accounts
 
 
amount of

Maturity
 
Fixed

Floating
deposits and other
 
payable and
 
 
borrowings

date
Pay / Receive
rate

rate
current assets
 
accrued liabilities
 
Term Loan(1)
 
 
 
 
 
 
 
 
 
$
150,000

June 17, 2021
Pay fixed rate / receive floating rate
0.96
%
US LIBOR
 
$
1,379

 
$
—

 
75,000

April 30, 2023
Pay fixed rate / receive floating rate
2.85
%
US LIBOR
 
—

 
(1,817
)
 
50,000

April 30, 2024
Pay fixed rate / receive floating rate
1.51
%
US LIBOR
 
252

 
(242
)
Unsecured Notes
 
 
 
 
 
 
 
 
 
50,000

August 25, 2023
Pay fixed rate / receive floating rate
1.18
%
US LIBOR
 
866

 
—

 
50,000

August 25, 2026
Pay fixed rate / receive floating rate
1.34
%
US LIBOR
 
1,179

 
—

 
 
 
 
 
 
 
$
3,676

 
$
(2,059
)

(1) The notional amounts for the interest rate swap contracts maturing on April 30, 2023 and April 30, 2024 are extensions to the $150 million interest rate swap contracts originally entered into related to the term loan and maturing on June 17, 2021.

The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at December 30, 2018:
 
 
 
 
 
 
Carrying and fair value
 
Notional

 
 
 
 
Prepaid expenses,
 
Accounts
 
 
amount of

Maturity
 
Fixed

Floating
deposits and other
 
payable and
 
 
borrowings

date
Pay / Receive
rate

rate
current assets
 
accrued liabilities
 
Term Loan(1)
 
 
 
 
 
 
 
 
 
$
150,000

June 17, 2021
Pay fixed rate / receive floating rate
0.96
%
US LIBOR
 
$
5,500

 
$
—

 
75,000

April 30, 2023
Pay fixed rate / receive floating rate
2.85
%
US LIBOR
 
—

 
(521
)
Unsecured Notes
 
 
 
 
 
 
 
 
 
50,000

August 25, 2023
Pay fixed rate / receive floating rate
1.18
%
US LIBOR
 
3,070

 
—

 
50,000

August 25, 2026
Pay fixed rate / receive floating rate
1.34
%
US LIBOR
 
4,382

 
—

 
 
 
 
 
 
 
$
12,952

 
$
(521
)
(1) The notional amounts for the interest rate swap contracts maturing on April 30, 2023 are extensions to the $150 million interest rate swap contracts originally entered into related to the term loan and maturing on June 17, 2021
Disclosure of detailed information about financial expenses, net
Financial expenses, net:
 
2019

 
2018

 
 
 
 
Interest expense on financial liabilities recorded at amortized cost (1)
$
28,659

 
$
24,757

Bank and other financial charges
8,010

 
7,472

Interest accretion on discounted lease obligations
3,141

 
—

Interest accretion on discounted provisions
287

 
299

Foreign exchange gain
(929
)
 
(1,483
)
 
$
39,168

 
$
31,045


(1) Net of capitalized borrowing costs of $1.3 million (2018 - $0.7 million).
Disclosure of detailed information about hedged items [text block]
The following table summarizes the Company’s hedged items as at December 29, 2019:
 
 
 
 
 
 
Change in

 
 
 
 
Carrying amount of
 
 
value used for

 
Cash flow

 
 
 
the hedged item
 
 
calculating hedge

 
hedge reserve

 
 
 
Assets

 
Liabilities

 
ineffectiveness

 
(AOCI)

 
 
 
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency risk:
 
 
 
 
 
 
 
 
 
Forecast sales
 
$
—

 
$
—

 
$
(972
)
 
$
972

 
Forecast expenses
 
—

 
—

 
342

 
(342
)
 
 
 
 
 
 
 
 
 
 
Commodity risk:
 
 
 
 
 
 
 
 
 
Forecast purchases
 
—

 
—

 
(1,416
)
 
1,416

 
 
 
 
 
 
 
 
 
 
Interest rate risk:
 
 
 
 
 
 
 
 
 
Forecast interest payments
 
—

 
—

 
1,511

 
(1,511
)
 
 
 
$
—

 
$
—

 
$
(535
)
 
$
535



No ineffectiveness was recognized in net earnings as the change in value of the hedging instrument used for calculating ineffectiveness was the same or smaller as the change in value of the hedged items used for calculating the ineffectiveness.

The following table summarizes the Company’s hedged items as at December 30, 2018:
 
 
 
 
 
 
Change in

 
 
 
 
Carrying amount of
 
 
value used for

 
Cash flow

 
 
 
the hedged item
 
 
calculating hedge

 
hedge reserve

 
 
 
Assets

 
Liabilities

 
ineffectiveness

 
(AOCI)

 
 
 
 
 
 
 
 
 
 
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency risk:
 
 
 
 
 
 
 
 
 
Forecast sales
 
$
—

 
$
—

 
$
2,752

 
$
(2,752
)
 
Forecast expenses
 
—

 
—

 
(897
)
 
897

 
 
 
 
 
 
 
 
 
 
Commodity risk:
 
 
 
 
 
 
 
 
 
Forecast purchases
 
—

 
—

 
(10,677
)
 
10,677

 
 
 
 
 
 
 
 
 
 
Interest rate risk:
 
 
 
 
 
 
 
 
 
Forecast interest payments
 
—

 
—

 
12,204

 
(12,204
)
 
 
 
$
—

 
$
—

 
$
3,382

 
$
(3,382
)