Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.19.3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 9 Months Ended
Sep. 28, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents outstanding derivatives on an individual contract basis:
 
 
September 2019
 
(in thousands)
 
Fair Value of Derivatives with Unrealized Gains
 
Fair Value of Derivatives with Unrealized Losses
 
 
 
 
 
 
 
Derivatives designated as hedging instruments:
 
 
 
 
 
Foreign currency exchange contracts
 
$
3,463

 
$
(2,603
)
 
Interest rate swap agreements
 
—

 
(4,861
)
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
Foreign currency exchange contracts
 
41

 
(110
)
 
Total derivatives
 
$
3,504

 
$
(7,574
)
 

The following table presents a reconciliation of gross to net amounts for derivative asset and liability balances:
 
 
September 2019
 
 
 
 
 
 
 
(in thousands)
 
Derivative Asset
 
Derivative Liability
 
Gross amounts presented in the balance sheet
 
$
3,504

 
$
(7,574
)
 
Gross amounts not offset in the balance sheet
 
(507
)
 
507

 
Net amounts
 
$
2,997

 
$
(7,067
)
 
The following table presents classification of derivatives as current or noncurrent based on maturity dates:
(in thousands)
 
September 2019
 
Derivative financial instruments:
 
 
 
Other current assets
 
$
2,900

 
Accrued liabilities
 
(2,376
)
 
Other assets
 
604

 
Other liabilities
 
(5,198
)
 

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following tables present the effects of cash flow hedges included in the Company's statements of income and statements of comprehensive income:
 
 
Three Months Ended September 2019
 
Nine Months Ended September 2019
 
(in thousands)
 
 
 
Cash Flow Hedging Relationships
 
Gain (Loss) on Derivatives Recognized in OCL
 
Gain (Loss) on Derivatives Recognized in OCL
 
Foreign currency exchange contracts
 
$
3,926

 
$
1,868

 
Interest rate swap agreements
 
(4,220
)
 
(4,220
)
 
Total
 
$
(294
)
 
$
(2,352
)
 
 
 
Three Months Ended September 2019
 
Nine Months Ended September 2019
 
(in thousands)
 
 
 
Location of Gain (Loss)
 
Gain (Loss) Reclassified from Accumulated OCL into Income
 
Gain (Loss) Reclassified from Accumulated OCL into Income
 
Net sales
 
$
(379
)
 
$
(475
)
 
Cost of goods sold
 
3,486

 
3,901

 
Other income (expense), net
 
328

 
371

 
Interest expense
 
642

 
642

 
Total
 
$
4,077

 
$
4,439

 

Derivatives Not Designated as Hedging Instruments
The following table presents a summary of these derivatives included in the Company's statements of income:
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
(in thousands)
 
 
 
 
September 2019
 
September 2019
 
Derivatives Not Designated as Hedges

Location of Gain (Loss) on Derivatives Recognized in Income

 
Gain (Loss) on Derivatives
Recognized in Income
 
Gain (Loss) on Derivatives
Recognized in Income
 
Foreign currency exchange contracts
 
Cost of goods sold
 
 
$
72

 
$
15

 

 

 
 
$
72

 
$
15