DERIVATIVES AND RISK MANAGEMENT (Tables)

9 Months Ended

Oct. 01, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of outstanding forward contracts

As of October 1, 2022, the Company had the following outstanding forward contracts designated as cash flow hedges that were entered into to hedge future payments of inventory transactions (in millions):


Functional Currency		Contract Currency
Type	Amount	Type	Amount
Euro	105.1	U.S. dollar	113.6
Canadian dollar	44.7	U.S. dollar	34.9
Mexican peso	302.3	U.S. dollar	14.7
British pound	7.9	U.S. dollar	10.0
Japanese yen	847.6	U.S. dollar	7.0
Australian dollar	9.6	U.S. dollar	6.8
U.S. dollar	13.4	Japanese yen	1,730.0

Schedule of effective portion of gains and losses on derivative instruments recognized in other comprehensive income (loss), net of taxes

The gains and losses on cash flow hedges that were recognized in other comprehensive income (loss), net of taxes are set forth below (in thousands):


	For the 13 Weeks Ended October 1, 2022		For the 13 Weeks Ended October 2, 2021
Cash flow hedges:
Forward contracts	$	8,211	$	3,292

Total gain (loss) recognized in other comprehensive income (loss), net of taxes	$	8,211	$	3,292


	For the 39 Weeks Ended October 1, 2022		For the 39 Weeks Ended October 2, 2021
Cash flow hedges:
Forward contracts	$	16,941	$	3,687

Total gain (loss) recognized in other comprehensive income (loss), net of taxes	$	16,941	$	3,687

Schedule of effective portion of gains and losses on derivative instruments recognized in other comprehensive income (loss), net of taxes reclassified into earnings and derivatives not designated as hedging instruments recorded directly to earnings

The following tables disclose the gains and losses on derivative instruments recorded in accumulated other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings, and gains and losses on derivatives not designated as hedging instruments recorded directly to earnings (in thousands):


Derivative Instruments	Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location	Effect of Derivative Instruments	For the 13 Weeks Ended October 1, 2022		For the 13 Weeks Ended October 2, 2021
Forward contracts designated as cash flow hedging instruments	Cost of sales	Total gain (loss) reclassified from accumulated other comprehensive income (loss)	$	3,158	$	689
Forward contracts designated as cash flow hedging instruments	Other income (expense)-net	Total gain (loss) reclassified from accumulated other comprehensive income (loss)	$	1,385	$	518
Forward contracts not designated as hedging instruments	Other income (expense)-net	Total gain (loss) recognized in income	$	(3)	$	61


Derivative Instruments	Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location	Effect of Derivative Instruments	For the 39 Weeks Ended October 1, 2022		For the 39 Weeks Ended October 2, 2021
Forward contracts designated as cash flow hedging instruments	Cost of sales	Total gain (loss) reclassified from accumulated other comprehensive income (loss)	$	6,198	$	938
Forward contracts designated as cash flow hedging instruments	Other income (expense)-net	Total gain (loss) reclassified from accumulated other comprehensive income (loss)	$	2,907	$	(858)
Forward contracts not designated as hedging instruments	Other income (expense)-net	Total gain (loss) recognized in income	$	63	$	(12)

Schedule of fair value amounts for derivative instruments as separate asset and liability values on a gross basis and their location on condensed consolidated balance sheets

The following table discloses the fair value amounts for the Company’s derivative instruments as separate asset and liability values, presents the fair value of derivative instruments on a gross basis, and identifies the line items in the condensed consolidated balance sheets in which the fair value amounts for these categories of derivative instruments are included (in thousands):


	Asset Derivatives						Liability Derivatives
	October 1, 2022			January 1, 2022			October 1, 2022			January 1, 2022
Derivative Instruments	Condensed Consolidated Balance Sheets Location	Fair Value		Condensed Consolidated Balance Sheets Location	Fair Value		Condensed Consolidated Balance Sheets Location	Fair Value		Condensed Consolidated Balance Sheets Location	Fair Value
Forward contracts designated as cash flow hedging instruments	Prepaid expenses and other current assets	$	13,418	Prepaid expenses and other current assets	$	3,452	Accrued expenses-other	$	1,290	Accrued expenses-other	$	177




Forward contracts designated as cash flow hedging instruments	Intangible and other assets-net	1,171		Intangible and other assets-net	—		Other long-term liabilities	—		Other long-term liabilities	—

Total		$	14,589		$	3,452		$	1,290		$	177

The following tables summarize the effects of the Company's derivative instruments on earnings (in thousands):


	Effect of Derivative Instruments
	For the 13 Weeks Ended October 1, 2022				For the 13 Weeks Ended October 2, 2021
	Cost of Sales		Other Income (Expense)-net		Cost of Sales		Other Income (Expense)-net
Total amounts of income and expense line items presented in the condensed consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded	$	216,651	$	(1,859)	$	232,305	$	(482)
Gain (loss) on cash flow hedging relationships:
Forward contracts designated as cash flow hedging instruments:
Total gain (loss) reclassified from other comprehensive income (loss)	$	3,158	$	1,385	$	689	$	518
Forward contracts not designated as hedging instruments:
Total gain (loss) recognized in income	$	—	$	(3)	$	—	$	61


	Effect of Derivative Instruments
	For the 39 Weeks Ended October 1, 2022				For the 39 Weeks Ended October 2, 2021
	Cost of Sales		Other Income (Expense)-net		Cost of Sales		Other Income (Expense)-net
Total amounts of income and expense line items presented in the condensed consolidated statements of income (loss) and comprehensive income (loss) in which the effects of cash flow hedges are recorded	$	588,010	$	(1,915)	$	601,857	$	882
Gain (loss) on cash flow hedging relationships:
Forward contracts designated as cash flow hedging instruments:
Total gain (loss) reclassified from other comprehensive income (loss)	$	6,198	$	2,907	$	938	$	(858)
Forward contracts not designated as hedging instruments:
Total gain (loss) recognized in income	$	—	$	63	$	—	$	(12)