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Financial instruments
 9 Months Ended
Sep. 26, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial instruments Financial instruments
Foreign currency forward contracts
We use derivative instruments for risk management purposes. Foreign currency forward contracts designated as cash flow hedges are used to manage foreign currency transaction exposure. Foreign currency forward contracts not designated as hedges for accounting purposes are used to manage exposure related to near term foreign currency denominated monetary assets and liabilities. We enter into the non-designated foreign currency forward contracts for periods consistent with our currency translation exposures, which generally approximate one month. For the three and nine months ended September 26, 2021 we recognized losses of $2.7 million and $5.2 million, respectively, related to non-designated foreign currency forward contracts. For the three and nine months ended September 27, 2020 we recognized losses of $0.9 million and $0.1 million, respectively, related to non-designated foreign currency forward contracts.
The total notional amount for all open foreign currency forward contracts designated as cash flow hedges as of September 26, 2021 and December 31, 2020 was $148.4 million and $129.5 million, respectively. The total notional amount for all open non-designated foreign currency forward contracts as of September 26, 2021 and December 31, 2020 was $174.4 million and $163.5 million, respectively. All open foreign currency forward contracts as of September 26, 2021 have durations of 12 months or less.
Cross-currency interest rate swaps
During 2019, we entered into cross-currency swap agreements with five different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate. Under the terms of the cross-currency swap agreements, we have notionally exchanged $250 million at an annual interest rate of 4.875% for €219.2 million at an annual interest rate of 2.4595%. The swap agreements are designed as net investment hedges and expire on March 4, 2024.
During 2018, we entered into cross-currency swap agreements with six different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate. Under the terms of the cross-currency swap agreements, we have notionally exchanged $500 million at an annual interest rate of 4.625% for €433.9 million at an annual interest rate of 1.942%. The swap agreements are designed as net investment hedges and expire on October 4, 2023.
The swap agreements described above require an exchange of the notional amounts upon expiration or earlier termination of the agreements. We and the counterparties have agreed to effect the exchange through a net settlement.
The cross-currency swaps are marked to market at each reporting date and any changes in fair value are recognized as a component of accumulated other comprehensive income (loss) ("AOCI"). The following table summarizes the foreign exchange gains and losses recognized within AOCI and the interest benefit recognized within interest expense related to cross currency swap for the three and nine months ended September 26, 2021 and September 27, 2020:
Three Months EndedNine Months Ended
September 26, 2021September 27, 2020September 26, 2021September 27, 2020
Foreign exchange gains (losses) $8,873 $(23,172)$19,360 $(5,565)
Interest benefit4,756 4,684 13,882 14,488 
Balance sheet presentation
The following table presents the locations in the condensed consolidated balance sheet and fair value of derivative financial instruments as of September 26, 2021 and December 31, 2020:
September 26, 2021December 31, 2020
Asset derivatives:  
Designated foreign currency forward contracts$1,151 $1,691 
Non-designated foreign currency forward contracts60 61 
Cross-currency interest rate swaps25,684 20,106 
Prepaid expenses and other current assets26,895 21,858 
Total asset derivatives$26,895 $21,858 
Liability derivatives:  
Designated foreign currency forward contracts$687 $1,504 
Non-designated foreign currency forward contracts286 366 
Other current liabilities973 1,870 
Cross-currency interest rate swaps9,946 34,125 
Other liabilities9,946 34,125 
Total liability derivatives$10,919 $35,995 
See Note 11 for information on the location and amount of gains and losses attributable to derivatives that were reclassified from AOCI to expense (income), net of tax.
There was no ineffectiveness related to our cash flow hedges during the three and nine months ended September 26, 2021 and September 27, 2020.
Trade receivables
The allowance for credit losses as of September 26, 2021 and December 31, 2020 was $11.5 million and $12.9 million, respectively. The current portion of the allowance for credit losses, which was $6.6 million and $8.1 million as of September 26, 2021 and December 31, 2020, respectively, was recognized as a reduction of accounts receivable, net.