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Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended
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Oct. 01, 2021
Fair Value Disclosures [Abstract] |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables provide information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands):
| Fair Value |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
October 1, 2021 |  |  |  |  |  |  |
Assets: Foreign currency contracts | $ | 115 |  |  | $ | — |  |  | $ | 115 |  |  | $ | — |
Liabilities: Foreign currency contracts | 420 |  |  | — |  |  | 420 |  |  | — |
Liabilities: Interest rate swap | 4,403 |  |  | — |  |  | 4,403 |  |  | — |
Liabilities: Contingent consideration | 2,282 |  |  | — |  |  | — |  |  | 2,282 |
December 31, 2020 |  |  |  |  |  |  |
Assets: Foreign currency contracts | $ | 2,070 |  |  | $ | — |  |  | $ | 2,070 |  |  | $ | — |
Liabilities: Interest rate swap | 7,026 |  |  | — |  |  | 7,026 |  |  | — |
Liabilities: Contingent consideration | 3,900 |  |  | — |  |  | — |  |  | 3,900 |
Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of October 1, 2021 is as follows (dollars in thousands):
Notional Amount |  |  |  | Start Date |  | End Date |  | Pay Fixed Rate |  | Receive Current Floating Rate |  | Fair Value |  | Balance Sheet Location
$ | 150,000 |  |  |  |  | Jun 2020 |  | Jun 2023 |  | 2.1785 | % |  | 0.0860 | % |  | $ | (4,403) |  |  | Other long-term liabilities
Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of December 31, 2020 is as follows (dollars in thousands):
Notional Amount |  |  |  | Start Date |  | End Date |  | Pay Fixed Rate |  | Receive Current Floating Rate |  | Fair Value |  | Balance Sheet Location
$ | 200,000 |  |  |  |  | Jun 2020 |  | Jun 2023 |  | 2.1785 | % |  | 0.1480 | % |  | $ | (7,026) |  |  | Other long-term liabilities
Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of October 1, 2021 is as follows (dollars in thousands):
Notional Amount |  | Start Date |  | End Date |  | $/Foreign Currency |  | Fair Value |  | Balance Sheet Location
$ | 665 |  |  | Oct 2021 |  | Nov 2021 |  | 0.0222 |  | UYU Peso |  | $ | 34 |  |  | Prepaid expenses and other current assets
1,015 |  |  | Oct 2021 |  | Dec 2021 |  | 0.0226 |  | UYU Peso |  | 32 |  |  | Prepaid expenses and other current assets
999 |  |  | Oct 2021 |  | Dec 2021 |  | 0.0222 |  | UYU Peso |  | 49 |  |  | Prepaid expenses and other current assets
2,155 |  |  | Oct 2021 |  | Dec 2021 |  | 0.0479 |  | MXN Peso |  | 31 |  |  | Accrued expenses and other current liabilities
3,669 |  |  | Oct 2021 |  | Dec 2021 |  | 1.2230 |  | Euro |  | (185) |  |  | Accrued expenses and other current liabilities
3,648 |  |  | Oct 2021 |  | Dec 2021 |  | 0.0486 |  | MXN Peso |  | (5) |  |  | Accrued expenses and other current liabilities
3,674 |  |  | Oct 2021 |  | Dec 2021 |  | 1.2245 |  | Euro |  | (190) |  |  | Accrued expenses and other current liabilities
4,444 |  |  | Oct 2021 |  | Dec 2021 |  | 0.0494 |  | MXN Peso |  | (71) |  |  | Accrued expenses and other current liabilities
Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of December 31, 2020 is as follows (dollars in thousands):
Notional Amount |  | Start Date |  | End Date |  | $/Foreign Currency |  | Fair Value |  | Balance Sheet Location
$ | 16,132 |  |  | Nov 2020 |  | Sep 2021 |  | 1.1949 |  | Euro |  | $ | 399 |  |  | Prepaid expenses and other current assets
10,224 |  |  | Jan 2021 |  | Sep 2021 |  | 0.0454 |  | MXN Peso |  | 922 |  |  | Prepaid expenses and other current assets
2,656 |  |  | Jan 2021 |  | Mar 2021 |  | 0.0443 |  | MXN Peso |  | 341 |  |  | Prepaid expenses and other current assets
7,269 |  |  | Apr 2021 |  | Dec 2021 |  | 0.0485 |  | MXN Peso |  | 77 |  |  | Prepaid expenses and other current assets
3,252 |  |  | Jan 2021 |  | Aug 2021 |  | 0.0232 |  | UYU Peso |  | 165 |  |  | Prepaid expenses and other current assets
3,966 |  |  | Jan 2021 |  | Nov 2021 |  | 0.0227 |  | UYU Peso |  | 166 |  |  | Prepaid expenses and other current assets
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables present the effect of cash flow hedge derivative instruments on other comprehensive income (loss) (“OCI”), AOCI and the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the nine months ended October 1, 2021 and October 2, 2020 (in thousands):
|  | Three Months Ended
|  | October 1, 2021 |  | October 2, 2020
|  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity |  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity
Sales |  | $ | 305,574 |  |  | $ | (240) |  |  | $ | 235,942 |  |  | $ | 590 |
Cost of sales |  | 223,702 |  |  | 434 |  |  | 178,009 |  |  | (651) |
Operating expenses |  | 48,782 |  |  | 12 |  |  | 18,175 |  |  | (23) |
Interest expense |  | 10,053 |  |  | (584) |  |  | 9,368 |  |  | (1,066) |
|  | Nine Months Ended
|  | October 1, 2021 |  | October 2, 2020
|  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity |  | Total |  | Amount of Gain (Loss) on Cash Flow Hedge Activity
Sales |  | $ | 908,064 |  |  | $ | (203) |  |  | $ | 804,483 |  |  | $ | 549 |
Cost of sales |  | 652,960 |  |  | 1,508 |  |  | 591,985 |  |  | (1,059) |
Operating expenses |  | 148,056 |  |  | 50 |  |  | 119,479 |  |  | (57) |
Interest expense |  | 26,117 |  |  | (2,613) |  |  | 29,002 |  |  | (2,431) |
|  | Unrealized Gain (Loss) Recognized in OCI |  | Realized Gain (Loss) Reclassified from AOCI
|  | Three Months Ended |  | Location in Statements of Operations and Comprehensive Income |  | Three Months Ended
|  | October 1, 2021 |  | October 2, 2020 |  |  | October 1, 2021 |  | October 2, 2020
Interest rate swap |  | $ | 119 |  |  | $ | (11) |  |  | Interest expense |  | $ | (584) |  |  | $ | (1,066) |
Foreign exchange contracts |  | (239) |  |  | 68 |  |  | Sales |  | (240) |  |  | 590 |
Foreign exchange contracts |  | (235) |  |  | 451 |  |  | Cost of sales |  | 434 |  |  | (651) |
Foreign exchange contracts |  | 49 |  |  | 57 |  |  | Operating expenses |  | 12 |  |  | (23) |
|  | Nine Months Ended |  | Location in Statements of Operations and Comprehensive Income |  | Nine Months Ended
|  | October 1, 2021 |  | October 2, 2020 |  |  | October 1, 2021 |  | October 2, 2020
Interest rate swaps |  | $ | 10 |  |  | $ | (7,401) |  |  | Interest expense |  | $ | (2,613) |  |  | $ | (2,431) |
Foreign exchange contracts |  | (977) |  |  | 277 |  |  | Sales |  | (203) |  |  | 549 |
Foreign exchange contracts |  | (69) |  |  | (2,277) |  |  | Cost of sales |  | 1,508 |  |  | (1,059) |
Foreign exchange contracts |  | 26 |  |  | (15) |  |  | Operating expenses |  | 50 |  |  | (57) |
Schedule of Estimated Fair Values for Contingent Consideration | The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three and nine months ended October 1, 2021 and October 2, 2020 (in thousands):
| Three Months Ended |  | Nine Months Ended
| October 1, 2021 |  | October 2, 2020 |  | October 1, 2021 |  | October 2, 2020
Fair value measurement at beginning of period | $ | 2,281 |  |  | $ | 5,887 |  |  | $ | 3,900 |  |  | $ | 4,200 |
Amount recorded for acquisitions | — |  |  | — |  |  | — |  |  | 2,700 |
Fair value measurement adjustment | — |  |  | — |  |  | — |  |  | (500) |
Payments(1) | — |  |  | (500) |  |  | (1,621) |  |  | (1,000) |
Foreign currency translation | 1 |  |  | 14 |  |  | 3 |  |  | 1 |
Fair value measurement at end of period | $ | 2,282 |  |  | $ | 5,401 |  |  | $ | 2,282 |  |  | $ | 5,401 |
__________ (1)Amounts for 2021 periods consist of payments associated with the Company’s acquisitions of InoMec and USB, resulting from achievement of revenue-based goals for the period from March 1, 2020 to February 28, 2021 for InoMec and January 1, 2020 to December 31, 2020 for USB. Amounts for 2020 periods consist of a payment made to settle a portion of a contingent consideration arrangement relating to a license to use technology.
Schedule of Contingent Consideration Measurement Inputs | The following table provides quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration:
|  | October 1, 2021 |  |  |  |  |  |
Contingency Type |  | Maximum Payout (undiscounted) |  | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Weighted Average or Range
Revenue-based payments |  | $ | 6,750 |  |  | $ | 2,282 |  |  | Monte Carlo |  | Revenue volatility |  | 35.0 | %
|  |  |  |  |  |  |  | Discount rate |  | 4.0 | %
|  |  |  |  |  |  |  | Projected year(s) of payment |  | 2022-2024
|  | December 31, 2020 |  |  |  |  |  |
Contingency Type |  | Maximum Payout (undiscounted) |  | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Weighted Average or Range
Revenue-based payments |  | $ | 9,000 |  |  | $ | 3,900 |  |  | Monte Carlo |  | Revenue volatility |  | 35.0 | %
|  |  |  |  |  |  |  | Discount rate |  | 4.0 | %
|  |  |  |  |  |  |  | Projected year(s) of payment |  | 2021-2024
Schedule of Equity Method Investments | Equity investments comprise the following (in thousands):
|  |  |  |  | October 1, 2021 |  | December 31, 2020
Equity method investment |  |  |  |  | $ | 17,627 |  |  | $ | 21,470 |
Non-marketable equity securities |  |  |  |  | 5,723 |  |  | 5,723 |
Total equity investments |  |  |  |  | $ | 23,350 |  |  | $ | 27,193 |
(13.) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued) The components of (Gain) loss on equity investments for each period were as follows (in thousands):
| Three Months Ended |  | Nine Months Ended
| October 1, 2021 |  | October 2, 2020 |  | October 1, 2021 |  | October 2, 2020
Equity method investment (gain) loss | $ | (152) |  |  | $ | (2,234) |  |  | $ | 1,867 |  |  | $ | (3,954) |

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- Definition Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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