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.

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, which 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.

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.

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.

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.

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.

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)

The Company has entered into non-designated derivative contracts to manage the cost of anticipated 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 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