Derivatives and Risk Management (Tables)

12 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of outstanding forward contracts

As of December 28, 2019, the Company had the following outstanding forward contracts designated as cash flow hedges that were entered into to hedge the future payments of intercompany inventory transactions (in millions):



Functional Currency		Contract Currency
Type	Amount	Type	Amount
Euro	106.0	U.S. dollar	122.7
Canadian dollar	41.4	U.S. dollar	31.3
British pound	13.6	U.S. dollar	17.7
Japanese yen	1,320.5	U.S. dollar	12.4
Mexican peso	167.8	U.S. dollar	8.4
Australian dollar	6.7	U.S. dollar	4.6
U.S. dollar	18.7	Japanese Yen	1,985.0

Schedule of effective portion of gains and losses on derivative instruments recognized in other comprehensive income (loss), net of taxes

The effective portion of gains and losses on cash flow hedges that were recognized in other comprehensive income (loss), net of taxes during fiscal years 2019, 2018 and 2017 are set forth below (in thousands):



Fiscal Year	2019		2018		2017
Cash flow hedges:
Forward contracts	$	6,060	$	18,044	$	(25,088	)
Interest rate swaps	—		—		278
Total gain (loss) recognized in other comprehensive income (loss), net of taxes	$	6,060	$	18,044	$	(24,810	)

Schedule of effective portion of gains and losses on derivative instruments designated and qualifying as cash flow hedges recorded in other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings and gains and losses on derivatives not designated as hedging instruments recorded

The following table illustrates the effective portion of gains and losses on derivative instruments recorded in other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings, and gains and losses on derivatives not designated as hedging instruments recorded directly to earnings during fiscal years 2019, 2018 and 2017 (in thousands):



Derivative Instruments	Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location	Effect of Derivative Instruments	Fiscal Year 2019			Fiscal Year 2018			Fiscal Year 2017
Forward contracts designated as cash flow hedging instruments	Cost of sales ⁽¹⁾	Total gain (loss) reclassified from accumulated other comprehensive income (loss)	$	9,939		$	—		$	—
Forward contracts designated as cash flow hedging instruments	Other income (expense)-net	Total gain (loss) reclassified from accumulated other comprehensive income (loss)	$	1,720		$	(2,629	)	$	(4,297	)
Forward contracts not designated as hedging instruments	Other income (expense)-net	Total gain (loss) recognized in income	$	(88	)	$	244		$	(652	)
Interest rate swap designated as a cash flow hedging instrument	Interest expense	Total gain (loss) reclassified from accumulated other comprehensive income (loss)	$	—		$	—		$	(260	)
Interest rate swap not designated as a cash flow hedging instrument	Other income (expense)-net	Total gain (loss) recognized in income	$	—		$	67		$	—
Interest rate swap not designated as a cash flow hedging instrument	Other income (expense)-net	Total gain (loss) reclassified from accumulated other comprehensive income (loss)	$	—		$	—		$	195

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⁽¹⁾The adoption of ASU 2017-12 resulted in net gains being recorded in cost of sales for fiscal year 2019 which would have been recognized in other income (expense) - net under previous accounting guidance.

Schedule of fair value amounts for derivative instruments as separate asset and liability values on a gross basis and their location on condensed consolidated balance sheets

The following table discloses the fair value amounts for the Company's derivative instruments as separate asset and liability values, presents the fair value of derivative instruments on a gross basis, and identifies the line items in the consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands):



	Asset Derivatives						Liability Derivatives
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
	Consolidated Balance Sheets Location	Fair Value		Consolidated Balance Sheets Location	Fair Value		Consolidated Balance Sheets Location	Fair Value		Consolidated Balance Sheets Location	Fair Value
Forward contracts designated as cash flow hedging instruments	Prepaid expenses and other current assets	$	3,327	Prepaid expenses and other current assets	$	9,217	Accrued expenses-other	$	1,657	Accrued expenses-other	$	660
Forward contracts not designated as cash flow hedging instruments	Prepaid expenses and other current assets	—		Prepaid expenses and other current assets	15		Accrued expenses-other	63		Accrued expenses-other	—
Forward contracts designated as cash flow hedging instruments	Intangible and other assets-net	21		Intangible and other assets-net	453		Other long-term liabilities	104		Other long-term liabilities	70
Total		$	3,348		$	9,685		$	1,824		$	730

The following table summarizes the effects of the Company's derivative instruments on earnings (in thousands):



	Effect of Derivative Instruments
	Fiscal Year 2019				Fiscal Year 2018
	Cost of Sales		Other Income (Expense)-net		Cost of Sales		Other Income (Expense)-net
Total amounts of income and expense line items presented in the consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded	$	1,118,274	$	26,984	$	1,201,351	$	(38	)
Gain (loss) on cash flow hedging relationships:
Forward contracts designated as cash flow hedging instruments:
Total gain (loss) reclassified from other comprehensive income (loss)	9,939		1,720		—		(2,629		)