Derivative Instruments

3 Months Ended

Mar. 31, 2024

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):

	March 31, 2024			December 31, 2023
Currency	Notional Value	USD Equivalent		Notional Value	USD Equivalent
Derivatives Not Designated as Hedging Instruments:
Singapore Dollar	39,950	$	29,652	39,700	$	30,136
Euro	18,500	19,940		40,000	44,302
Mexican Peso	205,000	12,273		145,000	8,505
Chinese Renminbi	50,000	6,886		50,000	7,025
Hungarian Forint	2,250,000	6,152		2,240,000	6,466
British Pound	3,330	4,229		3,345	4,258
Japanese Yen	600,000	3,980		600,000	4,255
Swiss Franc	2,400	2,673		—	—
Canadian Dollar	1,720	1,270		1,470	1,112

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	March 31, 2024		December 31, 2023		Sheet Location	March 31, 2024		December 31, 2023
Derivatives Not Designated as Hedging Instruments:
Economic hedge forward contracts	Prepaid expenses and other current assets	$	22	$	151	Accrued expenses	$	221	$	106

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
	March 31, 2024		December 31, 2023			March 31, 2024		December 31, 2023
Gross amounts of recognized assets	$	22	$	151	Gross amounts of recognized liabilities	$	221	$	106
Gross amounts offset	—		—		Gross amounts offset	—		—
Net amount of assets presented	$	22	$	151	Net amount of liabilities presented	$	221	$	106

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

	Location in Financial Statements	Three-months Ended
		March 31, 2024		April 2, 2023
Derivatives Not Designated as Hedging Instruments:
Gains (losses) recognized in current operations	Foreign currency gain (loss)	$	(245)	$	(1,471)