FOREIGN CURRENCY CONTRACTS

12 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FOREIGN CURRENCY CONTRACTS

FOREIGN CURRENCY CONTRACTS

Cross currency loans

The Company entered into foreign exchange forward contracts during fiscal 2019 and 2018 to limit its foreign currency exposure related U.S. dollar denominated loans borrowed by a non-U.S. Euro functional currency entity under the Company’s Credit Facility. These contracts are not designated as hedging instruments. Any gains or losses on these forward contracts are recognized immediately within Interest expense in the consolidated statements of income.

The Company had no open forward contracts related to a U.S. dollar denominated loan borrowed by a non-U.S. Euro functional currency as of December 28, 2019. One contract remained open as of December 29, 2018, which has a duration of approximately 3 months, and is recorded at fair value in the Company’s accompanying consolidated balance sheets. The notional amount and fair value of the open contract is summarized as follows:

December 29, 2018
Notional Amount		Fair Value			Balance Sheet Location
(in thousands)
$	343,300	$	(1,319	)	Other current liabilities

The following table summarizes the effect of the foreign exchange forward contracts entered into to limit the Company’s foreign currency exposure related to U.S. dollar denominated loans borrowed by a non-U.S. Euro functional currency entity under the Credit Facility on the Company’s consolidated statements of income:

	Fiscal Year
	2019				2018
Location of gain (loss)	Financial statement caption amount		Amount of gain (loss)		Financial statement caption amount		Amount of gain (loss)
	(in thousands)
Interest expense	$	60,882	$	18,672	$	63,772	1,486

Intercompany loans

The Company periodically enters into foreign exchange forward contracts to limit its foreign currency exposure related to certain intercompany loans. These contracts are not designated as hedging instruments. Any gains or losses on forward

contracts associated with intercompany loans are recognized immediately in Other income, net and are largely offset by the remeasurement of the underlying intercompany loans.

The Company entered into foreign currency forward contracts during 2019. One contract remained open at December 28, 2019, which had a duration of less than one month and is recorded at fair value in the Company’s accompanying consolidated balance sheets. The Company did not have any significant foreign currency forward contracts related to certain intercompany loans during fiscal years 2018 and 2017. The notional amount and fair value of the open contract is summarized as follows:

December 28, 2019
Notional Amount		Fair Value			Balance Sheet Location
(in thousands)
$	115,038	$	(876	)	Other current liabilities

The following table summarizes the effect of the foreign exchange forward contracts in connection with certain intercompany loans on the Company’s consolidated statements of income:

    

	Fiscal Year
	2019
Location of gain (loss)	Financial statement caption amount		Amount of gain (loss)
	(in thousands)
Other income, net	$	12,293	$	(121	)