Derivative Instruments

6 Months Ended

Jul. 04, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative InstrumentsThe Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities of up to 95 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment.

The Company had the following outstanding forward contracts (in thousands):

	July 4, 2021			December 31, 2020
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:
Chinese Renminbi	490,000	$	75,228	—	$	—
Euro	35,000	41,457		50,000	61,342
Korean Won	21,000,000	18,483		6,925,000	6,377
Mexican Peso	130,000	6,519		155,000	7,776
Japanese Yen	600,000	5,391		600,000	5,808
Hungarian Forint	1,235,000	4,149		1,330,000	4,494
British Pound	2,820	3,881		1,675	2,287
Taiwanese Dollar	42,150	1,511		38,035	1,362
Canadian Dollar	1,435	1,160		1,285	1,010
Singapore Dollar	1,550	1,149		1,465	1,110

Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):

	Asset Derivatives					Liability Derivatives
	Balance	Fair Value				Balance	Fair Value
	Sheet Location	July 4, 2021		December 31, 2020		Sheet Location	July 4, 2021		December 31, 2020
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contracts	Prepaid expenses and other current assets	$	47	$	265	Accrued expenses	$	585	$	38

The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands):

Asset Derivatives					Liability Derivatives
	July 4, 2021		December 31, 2020			July 4, 2021		December 31, 2020
Gross amounts of recognized assets	$	47	$	265	Gross amounts of recognized liabilities	$	585	$	38
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	47	$	265	Net amount of liabilities presented	$	585	$	38

Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):

	Location in Financial Statements	Three-months Ended				Six-months Ended
		July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	(746)	$	60	$	2,148	$	(8,180)