Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.19.2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Jun. 29, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Foreign Exchange Contracts, Statement of Financial Position
The Company records and presents the fair value of all of its derivative assets and liabilities in the Company's balance sheets on a gross basis, even though they are subject to master netting agreements. If the Company were to offset and record the asset and liability balances of its foreign exchange forward contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Company's balance sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
 
 
June 2019
 
 
 
 
 
 
 
(in thousands)
 
Derivative Asset
 
Derivative Liability
 
Gross amounts presented in the balance sheet
 
$
855

 
$
(3,972
)
 
Gross amounts not offset in the balance sheet
 
(5
)
 
5

 
Net amounts
 
$
850

 
$
(3,967
)
 
Derivatives are classified as current or noncurrent based on maturity dates, as follows:
(in thousands)
 
June 2019
 
Other current assets
 
$
741

 
Accrued liabilities
 
(3,263
)
 
Other assets
 
114

 
Other liabilities
 
(709
)
 


The following table presents outstanding derivatives on an individual contract basis:
 
Fair Value of Derivatives
with Unrealized Gains
 
 
Fair Value of Derivatives
with Unrealized Losses
 
 
 
 
 
 
 
 
 
(in thousands)
 
June 2019
 
 
 
 
June 2019
 
Foreign currency exchange contracts designated as hedging instruments
 
$
852

 
 
 
 
$
(3,916
)
 
Foreign currency exchange contracts not designated as hedging instruments
 
3

 
 
 
 
(56
)
 
Total derivatives
 
$
855

 
 
 
 
$
(3,972
)
 

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The Company uses derivative contracts primarily to hedge a portion of the exchange risk for its forecasted sales, purchases, intercompany service fees and royalties. The effects of cash flows hedging included in the Company's statements of income and statements of comprehensive income are summarized as follows:
(in thousands)
Gain (Loss) on Derivatives Recognized in OCI
Three Months Ended June
 
Gain (Loss) on Derivatives Recognized in OCI
Six Months Ended June
 
 
 
 
 
 
 
 
Cash Flow Hedging Relationships
 
2019
 
 
 
2019
 
Foreign currency exchange
 
$
(2,058
)
 
 
 
$
(2,058
)
 
(in thousands)
Gain (Loss) Reclassified from Accumulated OCI into Income
Three Months Ended June
 
Gain (Loss) Reclassified from Accumulated OCI into Income
Six Months Ended June
 
 
 
 
 
 
 
 
Location of Gain (Loss)
 
2019
 
 
 
2019
 
Net sales
 
$
(96
)
 
 
 
$
(96
)
 
Cost of goods sold
 
415

 
 
 
415

 
Other income (expense), net
 
43

 
 
 
43

 
Total
 
$
362

 
 
 
$
362

 

Derivatives Not Designated as Hedging Instruments
Following is a summary of these derivatives included in the Company's statements of income:
(in thousands)

Location of Gain (Loss)
on Derivatives
Recognized in Income

Gain (Loss) on Derivatives
Recognized in Income
Three Months Ended June

Gain (Loss) on Derivatives
Recognized in Income
Six Months Ended June










Derivatives Not Designated as Hedges



2019



2019

Foreign currency exchange
 
Cost of goods sold
 
 
$
(57
)
 
 
 
$
(57
)
 

 

 
 
$
(57
)
 
 
 
$
(57
)