As a multinational business, the Company engages in transactions that are denominated in a variety of currencies. When appropriate, the Company uses foreign currency forward contracts to reduce its overall exposure to the effects of currency fluctuations on its results of operations and cash flows. The Company's policy prohibits trading in currencies for which there are no underlying exposures and entering into trades for any currency to intentionally increase the underlying exposure. The Company primarily hedges existing assets and liabilities associated with transactions currently on its balance sheet, which are undesignated hedges for accounting purposes. The Company is exposed to credit-related losses if counterparties to hedge contracts fail to perform their obligations.

As of July 4, 2025 and December 31, 2024, the Company had net outstanding foreign exchange contracts with notional amounts of $229.1 million and $256.8 million, respectively. Such contracts were obtained through financial institutions and were scheduled to mature within one month from the time of purchase. Management believes that these financial instruments should not subject the Company to increased risks from foreign exchange movements because gains and losses on these contracts should offset losses and gains on the underlying assets, liabilities and transactions to which they are related.

The following summarizes the Company’s net foreign exchange positions in U.S. Dollars (in millions):


	As of
	July 4, 2025				December 31, 2024
	Buy (Sell)		Notional Amount		Buy (Sell)		Notional Amount
Euro	$	42.4	$	42.4	$	71.1	$	71.1
Philippine Peso	35.4		35.4		41.0		41.0
Korean Won	(85.1)		85.1		(39.5)		39.5
Japanese Yen	3.5		3.5		35.0		35.0
Czech Koruna	14.4		14.4		24.0		24.0




Other Currencies - Buy	44.8		44.8		39.6		39.6
Other Currencies - Sell	(3.5)		3.5		(6.6)		6.6
	$	51.9	$	229.1	$	164.6	$	256.8

Amounts receivable or payable under the contracts were not material as of July 4, 2025 or December 31, 2024. During the quarters ended July 4, 2025 and June 28, 2024, net of the impact of the hedge positions, the realized and unrealized foreign currency transactions totaled a loss of $3.3 million and a gain of $0.2 million, respectively. During the six months ended July 4, 2025 and June 28, 2024, net of the impact of the hedge positions, the realized and unrealized foreign currency transactions totaled a loss of $2.1 million and a gain of $1.6 million, respectively. The realized and unrealized foreign currency transactions are included in Other income (expense) in the Consolidated Statements of Operations and Comprehensive Income.

The Company's foreign currency forward contracts generally mature within 12 months and are designated as cash flow hedges for accounting purposes. As of July 4, 2025, the notional value of outstanding foreign currency forward contracts designated as cash flow hedges was $108.8 million, with a fair value of $3.7 million recorded as Other current assets. A gain of $0.3 million and a loss of $3.2 million was recognized as a component of cost of revenue for the quarter and six months ended July 4, 2025. The Company did not identify any ineffectiveness with respect to the notional amounts of the foreign currency forward contracts effective as of July 4, 2025.

As of July 4, 2025, the Company had no outstanding commodity derivatives, currency swaps, options or equity investments held at subsidiaries or affiliated companies. The Company does not hedge the value of its equity investments in its subsidiaries or affiliated companies. The Company is exposed to credit-related losses if its hedge counterparties fail to perform their obligations.

As of July 4, 2025, the counterparties to the Company's hedge contracts were held at financial institutions which the Company believes to be highly rated, and no credit-related losses are anticipated.