Financial Instruments (Tables)
|
6 Months Ended |
Jul. 04, 2021 |
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis |
The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of July 4, 2021 and December 31, 2020.
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| |
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|
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|
|
|
|
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|
$ |
568,630 |
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|
$ |
— |
|
|
$ |
— |
|
|
$ |
568,630 |
|
|
|
|
373,113 |
|
|
|
12,698 |
|
|
|
— |
|
|
|
385,811 |
|
Available-for-sale securities: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
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|
225,415 |
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|
|
— |
|
|
|
225,415 |
|
|
|
|
— |
|
|
|
102,316 |
|
|
|
— |
|
|
|
102,316 |
|
Corporate debt securities |
|
|
— |
|
|
|
85,294 |
|
|
|
— |
|
|
|
85,294 |
|
|
|
|
8,030 |
|
|
|
— |
|
|
|
— |
|
|
|
8,030 |
|
U.S. government agency securities |
|
|
— |
|
|
|
4,508 |
|
|
|
— |
|
|
|
4,508 |
|
Certificates of deposit and time deposits |
|
|
— |
|
|
|
1,344 |
|
|
|
— |
|
|
|
1,344 |
|
Non-U.S. government securities |
|
|
— |
|
|
|
616 |
|
|
|
— |
|
|
|
616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,158 |
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|
|
— |
|
|
|
— |
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|
36,158 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
985,931 |
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|
$ |
432,191 |
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|
$ |
— |
|
|
$ |
1,418,122 |
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|
|
|
— |
|
|
|
25 |
|
|
|
— |
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|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
985,931 |
|
|
$ |
432,216 |
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|
$ |
— |
|
|
$ |
1,418,147 |
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|
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|
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|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
— |
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|
|
365 |
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|
|
— |
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|
365 |
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
— |
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|
$ |
365 |
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|
$ |
— |
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|
$ |
365 |
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Reported as follows: |
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|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
941,743 |
|
|
$ |
12,698 |
|
|
$ |
— |
|
|
$ |
954,441 |
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|
|
|
— |
|
|
|
282,121 |
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|
|
— |
|
|
|
282,121 |
|
Long-term marketable securities |
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|
44,188 |
|
|
|
137,372 |
|
|
|
— |
|
|
|
181,560 |
|
Prepayments and other current assets |
|
|
— |
|
|
|
25 |
|
|
|
— |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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$ |
985,931 |
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|
$ |
432,216 |
|
|
$ |
— |
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|
$ |
1,418,147 |
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Other current liabilities |
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$ |
— |
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|
$ |
365 |
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|
$ |
— |
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|
$ |
365 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
— |
|
|
$ |
365 |
|
|
$ |
— |
|
|
$ |
365 |
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| |
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$ |
443,166 |
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$ |
— |
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|
$ |
— |
|
|
$ |
443,166 |
|
|
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|
347,768 |
|
|
|
123,187 |
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|
|
— |
|
|
|
470,955 |
|
Available-for-sale securities: |
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|
|
|
|
|
|
|
|
|
|
|
— |
|
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|
— |
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|
258,304 |
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|
|
— |
|
|
|
258,304 |
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|
|
— |
|
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|
254,413 |
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|
|
— |
|
|
|
254,413 |
|
Corporate debt securities |
|
|
— |
|
|
|
83,615 |
|
|
|
— |
|
|
|
83,615 |
|
|
|
|
8,565 |
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|
|
— |
|
|
|
— |
|
|
|
8,565 |
|
U.S. government agency securities |
|
|
— |
|
|
|
4,339 |
|
|
|
— |
|
|
|
4,339 |
|
Certificates of deposit and time deposits |
|
|
— |
|
|
|
979 |
|
|
|
— |
|
|
|
979 |
|
Non-U.S. government securities |
|
|
— |
|
|
|
625 |
|
|
|
— |
|
|
|
625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,420 |
|
|
|
— |
|
|
|
— |
|
|
|
29,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
828,919 |
|
|
$ |
725,462 |
|
|
$ |
— |
|
|
$ |
1,554,381 |
|
|
|
|
— |
|
|
|
95 |
|
|
|
— |
|
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
828,919 |
|
|
$ |
725,557 |
|
|
$ |
— |
|
|
$ |
1,554,476 |
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|
|
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|
$ |
— |
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|
$ |
— |
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|
$ |
7,227 |
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|
$ |
7,227 |
|
|
|
|
— |
|
|
|
504 |
|
|
|
— |
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|
504 |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
— |
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|
$ |
504 |
|
|
$ |
7,227 |
|
|
$ |
7,731 |
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|
Cash and cash equivalents |
|
$ |
790,934 |
|
|
$ |
123,187 |
|
|
$ |
— |
|
|
$ |
914,121 |
|
|
|
|
— |
|
|
|
522,280 |
|
|
|
— |
|
|
|
522,280 |
|
Long-term marketable securities |
|
|
37,985 |
|
|
|
79,995 |
|
|
|
— |
|
|
|
117,980 |
|
Prepayments and other current assets |
|
|
— |
|
|
|
95 |
|
|
|
— |
|
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
828,919 |
|
|
$ |
725,557 |
|
|
$ |
— |
|
|
$ |
1,554,476 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other accrued liabilities |
|
$ |
— |
|
|
$ |
504 |
|
|
$ |
— |
|
|
$ |
504 |
|
Long-term contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
7,227 |
|
|
|
7,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
— |
|
|
$ |
504 |
|
|
$ |
7,227 |
|
|
$ |
7,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
Schedule of Changes in Fair Value of Level 3 Contingent Consideration |
Changes in the fair value of Level 3 contingent consideration for the three months ended July 4, 2021 and June 28, 2020 were as follows:
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| |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
— |
|
|
$ |
20,472 |
|
|
$ |
7,227 |
|
|
$ |
39,705 |
|
Fair value adjustment (a)(b) |
|
|
— |
|
|
|
29,259 |
|
|
|
(7,227 |
) |
|
|
19,239 |
|
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
(355 |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,852 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
— |
|
|
$ |
49,737 |
|
|
$ |
— |
|
|
$ |
49,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
In the six months ended July 4, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. As of July 4, 2021, the maximum amount of contingent consideration that could be paid in connection with the acquisition of AutoGuide is $100.2 million. The remaining earn-out periods end on December 31, 2021 and December 31, 2022. The sellers of AutoGuide have filed an arbitration claim against Teradyne related to allegations of non-compliance with its earn-out obligations. The ultimate amount of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide may be affected by the outcome of the arbitration (see Note R: “Commitments and Contingencies”). |
(b) |
In the three and six months ended June 28, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of Mobile Industrial Robots (“MiR”) decreased by $0.6 million and $3.6 million, respectively, due to lower forecasted results. In the three and six months ended June 28, 2020, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide increased by $29.9 million and $22.8 million, respectively, due to higher forecasted results. |
(c) |
In the six months ended June 28, 2020, Teradyne paid $8.9 million of contingent consideration for the earn-out in connection with the acquisition of MiR. |
|
Schedule of Carrying Amounts and Fair Values of Financial Instruments |
The carrying amounts and fair values of Teradyne’s financial instruments at July 4, 2021 and December 31, 2020 were as follows:
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| |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
954,441 |
|
|
$ |
954,441 |
|
|
$ |
914,121 |
|
|
$ |
914,121 |
|
|
|
|
463,681 |
|
|
|
463,681 |
|
|
|
640,260 |
|
|
|
640,260 |
|
|
|
|
25 |
|
|
|
25 |
|
|
|
95 |
|
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
7,227 |
|
|
|
7,227 |
|
|
|
|
365 |
|
|
|
365 |
|
|
|
504 |
|
|
|
504 |
|
|
|
|
357,379 |
|
|
|
1,595,912 |
|
|
|
410,111 |
|
|
|
1,739,553 |
|
(1) |
The carrying value represents the bifurcated debt component only, while the level 2 fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. |
|
Schedule of Available-for-Sale Marketable Securities |
The following table summarizes the composition of available-for-sale marketable securities at July 4, 2021:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
225,409 |
|
|
$ |
7 |
|
|
$ |
(1 |
) |
|
$ |
225,415 |
|
|
$ |
19,194 |
|
|
|
|
102,068 |
|
|
|
767 |
|
|
|
(519 |
) |
|
|
102,316 |
|
|
|
72,750 |
|
Corporate debt securities |
|
|
79,586 |
|
|
|
5,814 |
|
|
|
(106 |
) |
|
|
85,294 |
|
|
|
38,694 |
|
|
|
|
7,956 |
|
|
|
74 |
|
|
|
— |
|
|
|
8,030 |
|
|
|
— |
|
U.S. government agency securities |
|
|
4,490 |
|
|
|
22 |
|
|
|
(4 |
) |
|
|
4,508 |
|
|
|
1,308 |
|
Certificates of deposit and time deposits |
|
|
1,344 |
|
|
|
— |
|
|
|
— |
|
|
|
1,344 |
|
|
|
— |
|
Non-U.S. government securities |
|
|
616 |
|
|
|
— |
|
|
|
— |
|
|
|
616 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
421,469 |
|
|
$ |
6,684 |
|
|
$ |
(630 |
) |
|
$ |
427,523 |
|
|
$ |
131,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
282,061 |
|
|
$ |
93 |
|
|
$ |
(33 |
) |
|
$ |
282,121 |
|
|
$ |
59,990 |
|
Long-term marketable securities |
|
|
139,408 |
|
|
|
6,591 |
|
|
|
(597 |
) |
|
|
145,402 |
|
|
|
71,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
421,469 |
|
|
$ |
6,684 |
|
|
$ |
(630 |
) |
|
$ |
427,523 |
|
|
$ |
131,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The following table summarizes the composition of available-for-sale marketable securities at December 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
257,132 |
|
|
$ |
1,330 |
|
|
$ |
(158 |
) |
|
$ |
258,304 |
|
|
$ |
17,243 |
|
|
|
|
254,404 |
|
|
|
10 |
|
|
|
(1 |
) |
|
|
254,413 |
|
|
|
12,173 |
|
Corporate debt securities |
|
|
76,129 |
|
|
|
7,539 |
|
|
|
(53 |
) |
|
|
83,615 |
|
|
|
39,896 |
|
|
|
|
8,413 |
|
|
|
152 |
|
|
|
— |
|
|
|
8,565 |
|
|
|
— |
|
U.S. government agency securities |
|
|
4,294 |
|
|
|
46 |
|
|
|
(1 |
) |
|
|
4,339 |
|
|
|
1,106 |
|
Certificates of deposit and time deposits |
|
|
979 |
|
|
|
— |
|
|
|
— |
|
|
|
979 |
|
|
|
— |
|
Non-U.S. government securities |
|
|
625 |
|
|
|
— |
|
|
|
— |
|
|
|
625 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
601,976 |
|
|
$ |
9,077 |
|
|
$ |
(213 |
) |
|
$ |
610,840 |
|
|
$ |
70,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
522,228 |
|
|
$ |
92 |
|
|
$ |
(40 |
) |
|
$ |
522,280 |
|
|
$ |
61,806 |
|
Long-term marketable securities |
|
|
79,748 |
|
|
|
8,985 |
|
|
|
(173 |
) |
|
|
88,560 |
|
|
|
8,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
601,976 |
|
|
$ |
9,077 |
|
|
$ |
(213 |
) |
|
$ |
610,840 |
|
|
$ |
70,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual Maturities of Investments Held |
The contractual maturities of investments in available-for-sale securities held at July 4, 2021 were as follows:
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
282,061 |
|
|
$ |
282,121 |
|
Due after 1 year through 5 years |
|
|
90,625 |
|
|
|
90,940 |
|
Due after 5 years through 10 years |
|
|
6,089 |
|
|
|
6,585 |
|
|
|
|
34,738 |
|
|
|
39,847 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
413,513 |
|
|
$ |
419,493 |
|
|
|
|
|
|
|
|
|
|
|
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value |
The following table summarizes the fair value of derivative instruments as of July 4, 2021 and December 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts |
|
|
Prepayments |
|
|
$ |
25 |
|
|
$ |
95 |
|
Foreign exchange contracts |
|
|
Other current liabilities |
|
|
|
(365 |
) |
|
|
(504 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(340 |
) |
|
$ |
(409 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized |
The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and six months ended July 4, 2021 and June 28, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Location of Losses (Gains) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts |
|
|
Other (income) expense, net |
|
|
$ |
1,531 |
|
|
$ |
470 |
|
|
$ |
3,650 |
|
|
$ |
4,481 |
|
(1) |
The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. |
(2) |
For the three and six months ended July 4, 2021, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $0.1 million and $0.3 million, respectively. |
(3) |
For the three months ended June 28, 2020, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $0.4 million. For the six months ended June 28, 2020, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.6 million. |
|