XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Note 7 - Derivative Financial Instruments | 9 Months Ended
--- | ---
Sep. 24, 2022
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
7. | Derivative Financial Instruments
Foreign Exchange Derivative Contracts We operate and sell our products in various global markets and, as a result, we are exposed to changes in foreign currency exchange rates. In the fourth quarter of 2020, we began utilizing foreign currency forward contracts to offset future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities. Under this program, our strategy is to have increases or decreases in our foreign currency exposures mitigated by gains or losses on the foreign currency forward contracts to mitigate the risks and volatility associated with foreign currency transaction gains or losses. We do not use derivative financial instruments for speculative or trading purposes. For accounting purposes, our foreign currency forward contracts are not designated as hedging instruments and, accordingly, we record the fair value of these contracts as of the end of our reporting period in our condensed consolidated balance sheets with changes in fair value recorded within foreign transaction gain (loss) in our condensed consolidated statements of income for both realized and unrealized gains and losses. The cash flows associated with the foreign currency forward contracts are reported in net cash provided by operating activities in our condensed consolidated statements of cash flows. The fair value of our foreign exchange derivative contracts was determined based on current foreign currency exchange rates and forward points. All our foreign exchange derivative contracts outstanding at September 24, 2022 will mature during the fourth quarter of fiscal 2022. The following table provides information about our foreign currency forward contracts outstanding as of September 24, 2022 (in thousands):
|  |  | Contract Amount |  |  | Contract Amount |
Currency | Contract Position |  | (Local Currency) |  |  | (U.S. Dollars) |
Euro | Buy |  |  | 67,512 |  |  | $ | 65,700 |
Swiss Franc | Buy |  |  | 29,733 |  |  |  | 30,400 |
South Korean Won | Buy |  |  | 3,087,700 |  |  |  | 2,200 |
Japanese Yen | Buy |  |  | 85,752 |  |  |  | 600 |
|  |  |  |  |  |  | $ | 98,900 |
Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs. The fair values of foreign currency contracts outstanding at September 24, 2022 were immaterial. The location and amount of losses related to non-designated derivative instruments in the condensed consolidated statements of income were as follows (in thousands):
|  |  | Three months ended |  |  | Nine months ended |
Derivatives not designated | Location of gain (loss) |  | Sept. 24, |  |  | Sept. 25, |  |  | Sept. 24, |  |  | Sept. 25, |
as hedging instruments | recognized on derivatives |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Foreign exchange forward contracts | Foreign transaction loss |  | $ | (8,326 | ) |  | $ | (934 | ) |  | $ | (12,577 | ) |  |  | (2,283 | )

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration