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Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

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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