XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.20.2

Financial instruments | 6 Months Ended
--- | ---
Jun. 28, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial instruments | Financial instruments Foreign currency forward contracts We use derivative instruments for risk management purposes. Foreign currency forward contracts designated as cash flow hedges are used to manage foreign currency transaction exposure. Foreign currency forward contracts not designated as hedges for accounting purposes are used to manage exposure related to near term foreign currency denominated monetary assets and liabilities. We enter into the non-designated foreign currency forward contracts for periods consistent with our currency translation exposures, which generally approximate one month. For the three and six months ended June 28, 2020 we recognized a loss of $0.8 million and a gain of $0.8 million, respectively, related to non-designated foreign currency forward contract. For the three and six months ended June 30, 2019 we recognized a gain of $1.5 million and a loss of $1.6 million, respectively, related to non-designated foreign currency forward contracts. The total notional amount for all open foreign currency forward contracts designated as cash flow hedges as of June 28, 2020 and December 31, 2019 was $126.6 million and $132.0 million, respectively. The total notional amount for all open non-designated foreign currency forward contracts as of June 28, 2020 and December 31, 2019 was $153.3 million and $145.1 million, respectively. All open foreign currency forward contracts as of June 28, 2020 have durations of 12 months or less. Cross-currency interest rate swaps During 2019, we entered into cross-currency swap agreements with five different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate. Under the terms of the cross-currency swap agreements, we have notionally exchanged $250 million at an annual interest rate of 4.875% for €219.2 million at an annual interest rate of 2.4595%. The swap agreements are designed as net investment hedges and expire on March 4, 2024. During 2018, we entered into cross-currency swap agreements with six different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate. Under the terms of the cross-currency swap agreements, we have notionally exchanged $500 million at an annual interest rate of 4.625% for €433.9 million at an annual interest rate of 1.942%. The swap agreements are designed as net investment hedges and expire on October 4, 2023. The swap agreements described above require an exchange of the notional amounts upon expiration or earlier termination of the agreements. We and the counterparties have agreed to effect the exchange through a net settlement. The cross-currency swaps are marked to market at each reporting date and any changes in fair value are recognized as a component of accumulated other comprehensive income (loss) ("AOCI"). For the three and six months ended June 28, 2020, we recognized foreign exchange a loss of $7.4 million and a gain of $17.6 million, respectively, within AOCI related to the cross-currency swaps. For the three and six months ended June 30, 2019, we recognized foreign exchange loss of $0.7 million and gain of $9.8 million, respectively, within AOCI related to the cross-currency swaps. For the three and six months ended June 28, 2020, we recognized $4.9 million and $9.8 million, respectively, in interest benefit related to the cross-currency swaps. For the three and six months ended June 30, 2019, we recognized $4.9 million and $8.8 million, respectively, in interest benefit related to the cross-currency swaps. Balance sheet presentation The following table presents the locations in the condensed consolidated balance sheet and fair value of derivative financial instruments as of June 28, 2020 and December 31, 2019:
| June 28, 2020 |  | December 31, 2019
| (Dollars in thousands) |  |
Asset derivatives: |  |  |
Designated foreign currency forward contracts | $ | 995 |  |  | $ | 1,659 |
Non-designated foreign currency forward contracts | 105 |  |  | 192 |
Cross-currency interest rate swaps | 21,652 |  |  | 21,575 |
Prepaid expenses and other current assets | 22,752 |  |  | 23,426 |
Cross-currency interest rate swaps | 35,701 |  |  | 13,066 |
Other assets | 35,701 |  |  | 13,066 |
Total asset derivatives | $ | 58,453 |  |  | $ | 36,492 |
Liability derivatives: |  |  |
Designated foreign currency forward contracts | $ | 3,391 |  |  | $ | 1,285 |
Non-designated foreign currency forward contracts | 187 |  |  | 102 |
Other current liabilities | 3,578 |  |  | 1,387 |
Total liability derivatives | $ | 3,578 |  |  | $ | 1,387 |
See Note 11 for information on the location and amount of gains and losses attributable to derivatives that were reclassified from AOCI to expense (income), net of tax. There was no ineffectiveness related to our cash flow hedges during the three and six months ended June 28, 2020 and June 30, 2019. Trade receivables In the ordinary course of business, we grant non-interest bearing trade credit to our customers on normal credit terms. In an effort to reduce our credit risk, we (i) establish credit limits for all of our customer relationships, (ii) perform ongoing credit evaluations of our customers’ financial condition, (iii) monitor the payment history and aging of our customers’ receivables, and (iv) monitor open orders against an individual customer’s outstanding receivable balance. Our allowance for credit losses is maintained for trade accounts receivable based on the expected collectability of accounts receivable, after considering our historical collection experience, the length of time an account is outstanding, the financial position of the customer, information provided by credit rating services in addition to new requirements under the accounting guidance, effective January 1, 2020, that includes the consideration of events or circumstances indicating historic collection rates may not be indicative of future collectability, for example, potential customer liquidity concerns resulting from COVID-19, that may impact the collectability of our receivables as well as our estimate of credit losses expected to be incurred over the life of our receivables. To date, we have not experienced significant payment defaults by, or identified other significant collectability concerns with, our customers. The assumptions utilized in our current estimates may change due to changes in circumstances, additional future developments and the resolution of other contingencies. The allowance for credit losses as of June 28, 2020 and December 31, 2019 was $11.6 million and $9.1 million, respectively. The current portion of the allowance for credit losses, which was $7.3 million and $5.3 million as of June 28, 2020 and December 31, 2019, respectively, was recognized as a reduction of accounts receivable, net.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration