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Financial Instruments and Risk Management | 6 Months Ended
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Jun. 30, 2018
Text Block [Abstract] |
Financial Instruments and Risk Management | Financial Instruments and Risk Management The Company uses forward foreign exchange contracts to manage its exposures to movements in foreign exchange rates. As of June 30, 2018, the notional U.S. dollar equivalent of the Company’s derivative portfolio was $581,464, primarily consisting of contracts hedging exposures to the Euro, Australian dollar, Canadian dollar and Mexican peso. Fair Values of Derivative Instruments The fair values of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets of the Company were as follows:
| Balance Sheet Location |  | Fair Value
| June 30, 2018 |  | December 30, 2017
Hedges | Other current assets |  | $ | 18,325 |  |  | $ | 1,464 |
Non-hedges | Other current assets |  | 4,122 |  |  | 136 |
Total derivative assets |  |  | 22,447 |  |  | 1,600 |
Hedges | Accrued liabilities |  | (732 | ) |  | (14,750 | )
Non-hedges | Accrued liabilities |  | (703 | ) |  | (7,818 | )
Total derivative liabilities |  |  | (1,435 | ) |  | (22,568 | )
Net derivative asset (liability) |  |  | $ | 21,012 |  |  | $ | (20,968 | )
Cash Flow Hedges A hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability is designated as a cash flow hedge. The Company uses forward foreign exchange contracts to reduce the effect of fluctuating foreign currencies on short-term foreign currency-denominated transactions, foreign currency-denominated investments and other known foreign currency exposures. Gains and losses on these contracts are intended to offset losses and gains on the hedged transaction in an effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. The Company expects to reclassify into earnings during the next 12 months a net gain from AOCI of approximately $7,987. The ineffective portion of the changes in the fair value of derivatives used as cash flow hedges are reported in the “Cost of sales” line in the Condensed Consolidated Statements of Income. The effect of cash flow hedge derivative instruments on the Condensed Consolidated Statements of Income and AOCI is as follows:
| Amount of Gain (Loss) Recognized in AOCI (Effective Portion) |  | Amount of Gain (Loss) Recognized in AOCI (Effective Portion)
| Quarter Ended |  | Six Months Ended
| June 30, 2018 |  | July 1, 2017 |  | June 30, 2018 |  | July 1, 2017
Foreign exchange contracts | $ | 26,982 |  |  | $ | (8,167 | ) |  | $ | 25,274 |  |  | $ | (26,281 | )
| Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
|  | Quarter Ended |  | Six Months Ended
|  | June 30, 2018 |  | July 1, 2017 |  | June 30, 2018 |  | July 1, 2017
Foreign exchange contracts | Cost of sales |  | $ | (5,554 | ) |  | $ | 2,636 |  |  | $ | (7,219 | ) |  | $ | 2,934 |
Mark to Market Hedges A derivative used as a hedging instrument whose change in fair value is recognized to act as an economic hedge against changes in the values of the hedged item is designated a mark to market hedge. The Company uses foreign exchange derivative contracts as economic hedges against the impact of foreign exchange fluctuations on existing accounts receivable and payable balances and intercompany lending transactions denominated in foreign currencies. Foreign exchange derivative contracts are recorded as mark to market hedges when the hedged item is a recorded asset or liability that is revalued in each accounting period. These contracts are not designated as hedges under the accounting standards and are recorded at fair value in the Condensed Consolidated Balance Sheets. Any gains or losses resulting from changes in fair value are recognized directly into earnings. Gains or losses on these contracts largely offset the net remeasurement gains or losses on the related assets and liabilities. The effect of derivative contracts not designated as hedges on the Condensed Consolidated Statements of Income is as follows:
| Location of Gain (Loss) Recognized in Income on Derivatives |  | Amount of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income
| Quarter Ended |  | Six Months Ended
| June 30, 2018 |  | July 1, 2017 |  | June 30, 2018 |  | July 1, 2017
Foreign exchange contracts | Cost of sales |  | $ | 10,011 |  |  | $ | — |  |  | $ | 19,111 |  |  | $ | — |
Foreign exchange contracts | Selling, general and administrative expenses |  | 472 |  |  | (411 | ) |  | 775 |  |  | (4,675 | )
Total |  |  | $ | 10,483 |  |  | $ | (411 | ) |  | $ | 19,886 |  |  | $ | (4,675 | )

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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- References No definition available. + Details
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