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DERIVATIVES AND RISK MANAGEMENT (Tables)

6 Months Ended

Jul. 04, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of outstanding forward contracts

As of July 4, 2020, the Company had the following outstanding forward contracts designated as cash flow hedges that were entered into to hedge future payments of inventory transactions (in millions):

Functional Currency					Contract Currency
Type		Amount			Type		Amount
Euro		76.3			U.S. dollar		87.4
Canadian dollar		27.2			U.S. dollar		20.7
British pound		9.3			U.S. dollar		12.1
Japanese yen		935.6			U.S. dollar		8.8
Mexican peso		52.7			U.S. dollar		2.7
Australian dollar		1.7			U.S. dollar		1.2
U.S. dollar		13.4			Japanese yen		1,425.0

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

The gains and losses on cash flow hedges that were recognized in other comprehensive income (loss), net of taxes during the Second Quarter and Prior Year Quarter are set forth below (in thousands):

	For the 13 Weeks Ended July 4, 2020				For the 13 Weeks Ended June 29, 2019
Cash flow hedges:
Forward contracts	$	(630	)		$	718
Total gain (loss) recognized in other comprehensive income (loss), net of taxes	$	(630	)		$	718

	For the 27 Weeks Ended July 4, 2020				For the 26 Weeks Ended June 29, 2019
Cash flow hedges:
Forward contracts	$	5,943			$	2,164
Total gain (loss) recognized in other comprehensive income (loss), net of taxes	$	5,943			$	2,164

Schedule of effective portion of gains and losses on derivative instruments recognized in other comprehensive income (loss), net of taxes reclassified into earnings and derivatives not designated as hedging instruments recorded directly to earnings

The following tables disclose the gains and losses on derivative instruments recorded in accumulated 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 the Second Quarter and Prior Year Quarter (in thousands):

Derivative Instruments		Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location		Effect of Derivative Instruments		For the 13 Weeks Ended July 4, 2020				For the 13 Weeks Ended June 29, 2019
Forward contracts designated as cash flow hedging instruments		Cost of sales		Total gain (loss) reclassified from accumulated other comprehensive income (loss)		$	2,665			$	2,769
Forward contracts designated as cash flow hedging instruments		Other income (expense)-net		Total gain (loss) reclassified from accumulated other comprehensive income (loss)		$	2,403			$	(206	)
Forward contracts not designated as hedging instruments		Other income (expense)-net		Total gain (loss) recognized in income		$	(113	)		$	(20	)

Derivative Instruments		Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location		Effect of Derivative Instruments		For the 27 Weeks Ended July 4, 2020				For the 26 Weeks Ended June 29, 2019
Forward contracts designated as cash flow hedging instruments		Cost of sales		Total gain (loss) reclassified from accumulated other comprehensive income (loss)		$	5,311			$	4,790
Forward contracts designated as cash flow hedging instruments		Other income (expense)-net		Total gain (loss) reclassified from accumulated other comprehensive income (loss)		$	88			$	228
Forward contracts not designated as hedging instruments		Other income (expense)-net		Total gain (loss) recognized in income		$	92			$	(33	)

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 condensed consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands):

		Asset Derivatives												Liability Derivatives
		July 4, 2020						December 28, 2019						July 4, 2020						December 28, 2019
Derivative Instruments		Condensed Consolidated Balance Sheets Location		Fair Value				Condensed Consolidated Balance Sheets Location		Fair Value				Condensed Consolidated Balance Sheets Location		Fair Value				Condensed Consolidated Balance Sheets Location		Fair Value
Forward contracts designated as cash flow hedging instruments		Prepaid expenses and other current assets		$	3,016			Prepaid expenses and other current assets		$	3,327			Accrued expenses-other		$	160			Accrued expenses-other		$	1,657
Forward contracts not designated as cash flow hedging instruments		Prepaid expenses and other current assets		—				Prepaid expenses and other current assets		—				Accrued expenses-other		—				Accrued expenses-other		63
Forward contracts designated as cash flow hedging instruments		Intangible and other assets-net		—				Intangible and other assets-net		21				Other long-term liabilities		—				Other long-term liabilities		104
Total				$	3,016					$	3,348					$	160					$	1,824

 

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

		Effect of Derivative Instruments
		For the 13 Weeks Ended July 4, 2020								For the 13 Weeks Ended June 29, 2019
		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 condensed consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded		$	118,413			$	879			$	236,285			$	507
Gain (loss) on cash flow hedging relationships:
Forward contracts designated as cash flow hedging instruments:
Total gain (loss) reclassified from other comprehensive income (loss)		$	2,665			$	2,403			$	2,769			$	(206	)

		Effect of Derivative Instruments
		For the 27 Weeks Ended July 4, 2020								For the 26 Weeks Ended June 29, 2019
		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 condensed consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded		$	368,771			$	(6,411	)		$	453,626			$	26,417
Gain (loss) on cash flow hedging relationships:
Forward contracts designated as cash flow hedging instruments:
Total gain (loss) reclassified from other comprehensive income (loss)		$	5,311			$	88			$	4,790			$	228

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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Tabular disclosure of derivative instruments (including nonderivative instruments that are designated and qualify as hedging instruments) of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

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Tabular disclosure of the notional amounts of outstanding derivative positions.

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