Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.22.2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Jul. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the fair value of outstanding derivatives on an individual contract basis:
Fair Value of Derivatives
with Unrealized Gains		 Fair Value of Derivatives
with Unrealized Losses
June December June June December June
(In thousands) 2022 2021 2021 2022 2021 2021
Derivatives designated as hedging instruments:
Foreign currency exchange contracts $ 13,968  $ 7,321  $ 8,194  $ (360) $ (1,972) $ (4,381)
Interest rate swap agreements 6,512  —  —  —  (6,052) (11,825)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts 28  —  92  —  —  (30)
Total derivatives $ 20,508  $ 7,321  $ 8,286  $ (360) $ (8,024) $ (16,236)
The following table presents a reconciliation of gross to net amounts for derivative asset and liability balances:
June 2022 December 2021 June 2021
(In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability
Gross amounts presented in the balance sheet $ 20,508  $ (360) $ 7,321  $ (8,024) $ 8,286  $ (16,236)
Gross amounts not offset in the balance sheet (360) 360  (1,636) 1,636  (1,383) 1,383 
Net amounts $ 20,148  $ —  $ 5,685  $ (6,388) $ 6,903  $ (14,853)
The following table presents the location of derivatives in the Company's balance sheets, with current or noncurrent classification based on maturity dates:
(In thousands) June 2022 December 2021 June 2021
Prepaid expenses and other current assets $ 12,222  $ 6,356  $ 7,368 
Accrued liabilities (221) (1,623) (4,113)
Other assets 8,286  965  918 
Other liabilities (139) (6,401) (12,123)
Pre-Tax Effects of Cash Flow Hedges Included in the Statement of Operations and Statements of Comprehensive Income (Loss)
The following tables present the pre-tax effects of cash flow hedges included in the Company's statements of operations and statements of comprehensive income:
Gain on Derivatives Recognized in AOCL
(In thousands) Three Months Ended Six Months Ended
Cash Flow Hedging Relationships June 2022 June 2021 June 2022 June 2021
Foreign currency exchange contracts $ 6,915  $ 1,357  $ 14,240  $ 2,903 
Interest rate swap agreements 1,459  (609) 10,554  1,477 
Total $ 8,374  $ 748  $ 24,794  $ 4,380 
Gain (Loss) Reclassified from AOCL into Income
(In thousands) Three Months Ended Six Months Ended
Location of Gain (Loss) June 2022 June 2021 June 2022 June 2021
Net revenues $ (261) $ 125  $ (393) $ 200 
Cost of goods sold 2,425  (1,428) 4,726  (2,833)
Other (expense) income, net 2  (293) (101) (427)
Interest expense (745) (1,494) (2,011) (3,007)
Total $ 1,421  $ (3,090) $ 2,221  $ (6,067)
Summary of Derivatives Not Designated as Hedges
The following table presents a summary of these derivatives included in the Company's statements of operations:
Location of Gain (Loss) on Derivatives Recognized in Income Gain (Loss) on Derivatives Recognized in Income
(In thousands) Three Months Ended Six Months Ended
Derivatives Not Designated as Hedges June 2022 June 2021 June 2022 June 2021
Foreign currency exchange contracts Net revenues $ —  $ (23) $ —  $ (104)
Cost of goods sold 65  109  71  (14)
Other (expense) income, net —  (89) —  120 
Total $ 65  $ (3) $ 71  $ 2