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Financial Instruments and Derivatives (Tables)

6 Months Ended

Jul. 03, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Carrying amounts and fair values of financial instruments

The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value.

						July 3, 2022												December 31, 2021
						Carrying Amount						Fair Value						Carrying Amount						Fair Value
Long-term debt, net of current portion						$	2,727,916					$	2,569,487					$	1,199,106					$	1,434,711

Net positions of foreign contracts

The net positions of these contracts at July 3, 2022 were as follows (in thousands):

Currency			Action			Quantity
Colombian peso			purchase			13,591,224
Mexican peso			purchase			244,790
Polish zloty			purchase			44,467
Czech koruna			purchase			33,398
Euro			purchase			10,449
Turkish lira			purchase			9,356
Canadian dollar			purchase			7,809
British pound			purchase			1,005
Brazilian real			sell			(6,286)

Net positions of other derivatives contracts

The net currency positions of these non-designated contracts at July 3, 2022, were as follows (in thousands):

Currency			Action			Quantity
Colombian peso			purchase			31,847,040
Indonesian rupiah			purchase			30,335,671
Mexican peso			purchase			388,269
Turkish lira			purchase			36,904
Thai baht			purchase			9,251
Canadian dollar			purchase			4,026
Euro			purchase			20

Location and fair values of derivative instruments

The following table sets forth the location and fair values of the Company’s derivative instruments at July 3, 2022 and December 31, 2021:

Description						Balance Sheet Location						July 3, 2022						December 31, 2021
Derivatives designated as hedging instruments:
Commodity Contracts						Prepaid expenses						$	2,822					$	1,599
Commodity Contracts						Other assets						$	5					$	—
Commodity Contracts						Accrued expenses and other						$	(127)					$	(108)
Foreign Exchange Contracts						Prepaid expenses						$	936					$	848
Foreign Exchange Contracts						Accrued expenses and other						$	(1,432)					$	(969)
Foreign Exchange Contracts						Other liabilities						$	(63)					$	—
Derivatives not designated as hedging instruments:
Commodity Contracts						Prepaid expenses						$	4,688					$	1,815
Commodity Contracts						Other assets						$	197					$	—
Commodity Contracts						Accrued expenses and other						$	—					$	(1,132)
Commodity Contracts						Other liabilities						$	(957)					$	—
Foreign Exchange Contracts						Prepaid expenses						$	26					$	135
Foreign Exchange Contracts						Accrued expenses and other						$	(275)					$	(176)
Interest Rate Lock Contract						Accrued expenses and other						$	—					$	(550)

Effect of derivative instruments on financial performance

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three months ended July 3, 2022 and July 4, 2021, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

Description						Amount of Gain or (Loss) Recognized in OCI on Derivatives						Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income						Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Three months ended July 3, 2022
Foreign Exchange Contracts						$	(1,324)					Net sales						$	843
												Cost of sales						$	(1,011)
Commodity Contracts						$	850					Cost of sales						$	1,979
Three months ended July 4, 2021
Foreign Exchange Contracts						$	751					Net sales						$	1,489
												Cost of sales						$	(1,190)
Commodity Contracts						$	4,847					Cost of sales						$	646

 

Description

Gain or (Loss) Recognized

Location of Gain or (Loss) Recognized in Income Statement

Derivatives not Designated as Hedging Instruments:

Three months ended July 3, 2022

Commodity Contracts

$

506

Cost of sales

Foreign Exchange Contracts

$

(1,142)

Selling, general and administrative

Three months ended July 4, 2021

Commodity Contracts

$

56

Cost of sales

Foreign Exchange Contracts

$

220

Selling, general and administrative

						Three months ended July 3, 2022									Three months ended July 4, 2021
Description						Revenue			Cost of sales						Revenue			Cost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income						$	843		$	968					$	1,489		$	(544)
Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive loss into net income						$	843		$	(1,011)					$	1,489		$	(1,190)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive loss into net income						$	—		$	1,979					$	—		$	646

The following tables set forth the effect of the Company’s derivative instruments on financial performance for the six months ended July 3, 2022 and July 4, 2021, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to the carrying value of the capitalized expenditures:

Description						Amount of Gain or (Loss) Recognized in OCI on Derivatives						Location of Gain or (Loss) Reclassified from Accumulated OCI Into Income						Amount of Gain or (Loss) Reclassified from Accumulated OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Six months ended July 3, 2022
Foreign Exchange Contracts						$	88					Net sales						$	1,866
												Cost of sales						$	(1,706)
Commodity Contracts						$	4,183					Cost of sales						$	2,937
Six months ended July 4, 2021
Foreign Exchange Contracts						$	563					Net sales						$	1,829
												Cost of sales						$	(1,418)
Commodity Contracts						$	6,601					Cost of sales						$	575

 

Description

Gain or (Loss) Recognized

Location of Gain or (Loss) Recognized in Income Statement

Derivatives not Designated as Hedging Instruments:

Six months ended July 3, 2022

Commodity Contracts

$

7,498

Cost of sales

Foreign Exchange Contracts

$

201

Selling, general and administrative

Six months ended July 4, 2021

Commodity Contracts

$

434

Cost of sales

Foreign Exchange Contracts

$

(405)

Selling, general and administrative

						Six months ended July 3, 2022									Six months ended July 4, 2021
Description						Revenue			Cost of sales						Revenue			Cost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income						$	1,866		$	1,231					$	1,829		$	(843)
Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income						$	1,866		$	(1,706)					$	1,829		$	(1418)
Commodity contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive income into net income						$	—		$	2,937					$	—		$	575

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

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