XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.25.1

Financial Instruments and Derivatives | 3 Months Ended
--- | ---
Mar. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Instruments and Derivatives | Financial Instruments and Derivatives 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.
|  | March 30, 2025 |  | December 31, 2024
|  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Long-term debt, net of current portion |  | $ | 4,978,337 |  |  | $ | 4,829,445 |  |  | $ | 4,985,496 |  |  | $ | 4,800,455 |
The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement. Cash Flow Hedges At March 30, 2025 and December 31, 2024, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, w hich have maturities ranging from April 2025 to December 2025, qualify as cash flow hedges under GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Commodity Cash Flow Hedges Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as cash flow hedges. At March 30, 2025, there were no natural gas swaps covering anticipated natural gas usage in 2025, and aluminum swaps covering 4,179 metric tons of aluminum represented approximately 38.0% of anticipated aluminum usage for 2025. The fair value of the Company’s commodity cash flow hedges netted to gain positions of $116 and $652 at March 30, 2025 and December 31, 2024, respectively. The amount of the gain included in accumulated other comprehensive income at March 30, 2025 expected to be reclassified to the income statement during the next twelve months is $116. The Company also has certain natural gas hedges that it does not treat as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges. Foreign Currency Cash Flow Hedges The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases expected to occur in 2025. The net positions of these contracts at March 30, 2025 were as follows (in thousands):
Currency | Action | Quantity
USD Contracts |  |
Colombian peso | purchase | 20,102,855 |
Mexican peso | purchase | 297,228 |
Danish krone | purchase | 120,270 |
Polish zloty | purchase | 99,563 |
Czech koruna | purchase | 87,666 |
Turkish lira | purchase | 86,103 |
Euro | purchase | 2,687 |
Canadian dollar | purchase | 2,487 |
Swedish krona | sell | (4,565) |
British pound | sell | (4,428) |
Euro Contracts |  |
Euro | purchase | 29,132 |
British pound | sell | (5,382) |
USD | sell | (762) |
Hungarian forint | sell | (4,336,028) |
The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to a gain position of $1,120 and a loss position of $(1,841) at March 30, 2025 and December 31, 2024, respectively. Gains of $1,120 are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months. Net Investment Hedge In 2023, the Company became a party to cross-currency swap agreements with a total notional amount of $500,000 to effectively convert a portion of the Company’s fixed-rate U.S. dollar denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt. The swap agreements, which had a maturity of December 18, 2026, provided for the Company to receive semi-annual interest payments in U.S. dollars at a fixed rate and to make semi-annual interest payments in euros at a fixed rate. The risk management objective of entering into the swap agreements was to manage foreign currency risk relating to net investments in certain European subsidiaries denominated in euros. The agreements were designated as net investment hedges for accounting purposes. On April 15, 2024, as a result of the strengthening of the U.S. dollar against the euro, as well as a reduction in the differential between U.S. and European interest rates, the Company terminated its swap agreements and received a net cash settlement of $9,068. The foreign currency translation gain of approximately $3,143, net of tax, is included as a component of “Accumulated other comprehensive loss.” Following the unwind of the swaps, the Company entered into new cross-currency swap agreements with a total notional amount of $500,000 in April 2024 to effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt. The new swap agreements, which have a maturity of May 1, 2027, share the same risk management objective as the terminated cross-currency swap agreements and are also designated as net investment hedges for accounting purposes. In December 2024, the Company entered into additional cross-currency swap agreements with a total notional amount of $1,500,000, including $500,000 maturing on September 1, 2026, $500,000 maturing on September 1, 2029, and $500,000 maturing on May 1, 2030. The swaps effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution. The new swap agreements share the same risk management objective as the Company’s previously existing cross-currency swap agreements and are also designated as net investment hedges for accounting purposes. The gain or loss on the net investment hedge derivative instruments is included in the “Foreign currency translation” component of “Accumulated other comprehensive loss” until the net investment is sold, diluted, or liquidated. Interest payments received for the cross-currency swaps are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income. The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S. dollar exchange rate market. The fair value of the Company’s net investment hedges was a loss position of $49,242 and a gain position of $11,919 at March 30, 2025 and December 31, 2024, respectively. A foreign currency translation loss of $36,685 (net of income taxes of $12,557) and a gain of $8,880 (net of income taxes of $3,039) were reported as components of “Accumulated other comprehensive loss” within “Foreign currency items” at March 30, 2025 and December 31, 2024, respectively. Non-Designated Derivatives The Company routinely enters into other derivative contracts which are not designated for hedge accounting treatment under ASC 815, “Derivatives and Hedging.” As such, changes in fair value of these non-designated derivatives are recorded directly to income and expense in the periods that they occur. Cash flows from derivative financial instruments not designated as hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. Foreign Currency Hedges The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. The net currency positions of these non-designated contracts at March 30, 2025, were as follows (in thousands):
Currency | Action | Quantity
USD Contracts |  |
Colombian peso | purchase | 62,149,892 |
Mexican peso | purchase | 282,395 |
Indonesian rupiah | purchase | 14,957,473 |
Thai baht | sell | (30,514) |
Euro | purchase | 426 |
Canadian dollar | purchase | 3,695 |
Euro Contracts |  |
British pound | sell | (99,984) |
Polish zloty | sell | (51,255) |
Thai baht | sell | (468,966) |
Commodity Hedges The Company has entered into non-designated derivative contracts to manage the cost of a nticipated purchases of natural gas. At March 30, 2025, these contracts consisted of natural gas swaps covering approximately 3.8 million metric million British thermal units (“MMBTUs”) and represented approximately 74.5% of anticipated usage in North America for the remainder of 2025. The fair value of the Company’s non-designated deriva tives position was a gain of $2,955 and a loss of $(2,694) at March 30, 2025 and December 31, 2024, respectively. The following table sets forth the location and fair values of the Company’s derivative instruments at March 30, 2025 and December 31, 2024:
Description |  | Balance Sheet Location |  | March 30, 2025 |  | December 31, 2024
Derivatives designated as hedging instruments: |  |  |  |  |  |
Commodity Contracts |  | Prepaid expenses |  | $ | 344 |  |  | $ | 671 |
Commodity Contracts |  | Accrued expenses and other |  | (228) |  |  | (19) |
Foreign Exchange Contracts |  | Prepaid expenses |  | 3,159 |  |  | 2,068 |
Foreign Exchange Contracts |  | Accrued expenses and other |  | (2,039) |  |  | (3,909) |
Net investment hedge |  | Prepaid expenses |  | 25,273 |  |  | 26,833 |
Net investment hedge |  | Other assets |  | — |  |  | 1,845 |
Net investment hedge |  | Other liabilities |  | (74,515) |  |  | (16,759) |
Derivatives not designated as hedging instruments: |  |  |  |
Commodity Contracts |  | Prepaid expenses |  | $ | 3,476 |  |  | $ | 961 |
Commodity Contracts |  | Accrued expenses and other |  | (18) |  |  | (574) |
Foreign Exchange Contracts |  | Prepaid expenses |  | 385 |  |  | (59) |
Foreign Exchange Contracts |  | Accrued expenses and other |  | (888) |  |  | (3,022) |
While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements. The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended March 30, 2025 and March 31, 2024, 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-month period ended March 30, 2025 |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | $ | 3,251 |  |  | Net sales |  | $ | 399 |  |  |  |  |
|  |  |  | Cost of sales |  | (41) |  |  |  |  |
Commodity Contracts |  | (536) |  |  | Cost of sales |  | — |  |  |  |  |
Three-month period ended March 31, 2024 |  |  |  |  |  |  |  |
Foreign Exchange Contracts |  | $ | 561 |  |  | Net sales |  | $ | 436 |  |  |  |  |
|  |  |  | Cost of sales |  | (75) |  |  |  |  |
Commodity Contracts |  | (25) |  |  | Cost of sales |  | — |  |  |  |  |
Description |  | Gain or (Loss) Recognized |  | Location of Gain or (Loss) Recognized in Income Statement
Derivatives not Designated as Hedging Instruments: |  |  |  |
Three-month period ended March 30, 2025 |  |
Commodity Contracts |  | $ | 3,337 |  |  | Cost of sales
Foreign Exchange Contracts |  | 3,569 |  |  | Selling, general and administrative
Three-month period ended March 31, 2024 |  |
Commodity Contracts |  | $ | (2,558) |  |  | Cost of sales
Foreign Exchange Contracts |  | 305 |  |  | Selling, general and administrative
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 | $ | 399 |  | $ | (41) |  |  | $ | 436 |  | $ | (75) |
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 | $ | 399 |  | $ | (41) |  |  | $ | 436 |  | $ | (75) |
Commodity contracts: |  |  |  |  |
Amount of gain reclassified from accumulated other comprehensive loss into net income | $ | — |  | $ | — |  |  | $ | — |  | $ | — |

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 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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration