XML 27 R17.htm IDEA: XBRL DOCUMENT
v3.23.3

Financial instruments | 9 Months Ended
--- | ---
Oct. 01, 2023
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 nine months ended October 1, 2023, we recognized a loss of $1.0 million and a gain of $1.0 million, respectively, related to non-designated foreign currency forward contracts. For the three and nine months ended September 25, 2022, we recognized losses of $1.0 million and $4.2 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 October 1, 2023 and December 31, 2022 was $238.1 million and $184.8 million, respectively. The total notional amount for all open non-designated foreign currency forward contracts as of October 1, 2023 and December 31, 2022 was $140.3 million and $152.9 million, respectively. All open foreign currency forward contracts as of October 1, 2023 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 4.88% for €219.2 million at an annual interest rate of 2.46%. 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 (the "2018 Cross-currency swap"). Under the terms of the cross-currency swap agreements, we have notionally exchanged $500 million at an annual interest rate of 4.63% for €433.9 million at an annual interest rate of 1.94%. The swap agreements are designed as net investment hedges. For further discussion related to the 2018 Cross-currency swap refer to subsequent event section below. 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"). The following table summarizes the foreign exchange gains and losses recognized within AOCI and the interest benefit recognized within interest expense related to cross currency swap for the three and nine months ended October 1, 2023 and September 25, 2022:
| Three Months Ended |  | Nine Months Ended |  |
| October 1, 2023 |  | September 25, 2022 |  | October 1, 2023 |  | September 25, 2022 |  |  |  |
Foreign exchange gain | $ | 15,756 |  |  | $ | 42,189 |  |  | $ | 1,466 |  |  | $ | 68,643 |  |  |  |  |
Interest benefit | 5,171 |  |  | 5,531 |  |  | 15,459 |  |  | 15,677 |  |  |  |  |
Subsequent event On October 4, 2023, the third day of our fourth quarter, the agreements related to our 2018 Cross-currency swap matured resulting in $43.0 million in cash settlement proceeds. On October 2, 2023, we executed new 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 4.63% for €474.7 million at an annual interest rate of 3.05%. The swap agreements are designated as net investment hedges and expire on October 4, 2025. Balance sheet presentation The following table presents the locations in the condensed consolidated balance sheet and fair value of derivative financial instruments as of October 1, 2023 and December 31, 2022:
| October 1, 2023 |  | December 31, 2022
| Fair Value
Asset derivatives: |
Designated foreign currency forward contracts | $ | 4,288 |  |  | $ | 3,154 |
Non-designated foreign currency forward contracts | 158 |  |  | 41 |
Cross-currency interest rate swaps | 67,500 |  |  | 48,503 |
Prepaid expenses and other current assets | 71,946 |  |  | 51,698 |
Cross-currency interest rate swaps | — |  |  | 11,912 |
Other assets | — |  |  | 11,912 |
Total asset derivatives | $ | 71,946 |  |  | $ | 63,610 |
Liability derivatives: |  |  |
Designated foreign currency forward contracts | $ | 2,819 |  |  | $ | 983 |
Non-designated foreign currency forward contracts | 422 |  |  | 477 |
Other current liabilities | 3,241 |  |  | 1,460 |
Total liability derivatives | $ | 3,241 |  |  | $ | 1,460 |
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 nine months ended October 1, 2023 and September 25, 2022. Trade receivables The allowance for credit losses as of October 1, 2023 and December 31, 2022 was $9.1 million and $8.6 million, respectively. The current portion of the allowance for credit losses, which was $5.2 million and $4.9 million as of October 1, 2023 and December 31, 2022, 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: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration