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Derivative Instruments
3 Months Ended
Apr. 02, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The 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 that do not exceed approximately three months 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):
April 2, 2023December 31, 2022
CurrencyNotional
Value
USD
Equivalent
Notional
Value
USD
Equivalent
Derivatives Not Designated as Hedging Instruments:
Euro32,500 $35,529 60,000 $64,174 
Mexican Peso155,000 8,498 185,000 9,480 
Hungarian Forint1,890,000 5,381 1,590,000 4,238 
Japanese Yen600,000 4,536 700,000 5,281 
British Pound3,485 4,313 3,445 4,161 
Canadian Dollar1,705 1,261 1,730 1,278 
Chinese Renminbi  55,000 7,619 
Swiss Franc  1,120 1,218 
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands):
 Asset DerivativesLiability Derivatives
 BalanceFair ValueBalanceFair Value
 Sheet
Location
April 2, 2023December 31, 2022Sheet
Location
April 2, 2023December 31, 2022
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contractsPrepaid expenses and other current assets$154 $27 Accrued expenses$74 $479 

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 DerivativesLiability Derivatives
April 2, 2023December 31, 2022April 2, 2023December 31, 2022
Gross amounts of recognized assets$154 $27 Gross amounts of recognized liabilities$74 $479 
Gross amounts offset — Gross amounts offset — 
Net amount of assets presented$154 $27 Net amount of liabilities presented$74 $479 

Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands):
 Location in Financial StatementsThree-months Ended
 April 2, 2023April 3, 2022
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operationsForeign currency gain (loss)$(1,471)$1,739