v3.25.2
Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 28, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
The Company operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The foreign currency exposures typically arise from transactions denominated in currencies other than the functional currency of the Company's operations, primarily the British Pound, Canadian Dollar, Euro and Japanese Yen. The Company historically entered into derivative instruments that were designated as cash flow hedges to reduce its exposure to foreign currency exchange risk in sales. The Company exited its last cash flow hedges during February 2024. At June 28, 2025 and December 28, 2024, the Company had no outstanding cash flow hedges.
The Company enters into economic hedges that were not designated as hedges from an accounting standpoint to reduce foreign currency exchange risks related to short term trade receivables and payables. These contracts typically had maturities of approximately one month. Historically, the Company has used forward contracts but also may use option contracts as an alternative. At June 28, 2025 the Company had no outstanding foreign currency economic hedges. At December 28, 2024, the Company had outstanding foreign currency economic hedges with a total notional value of $28.1 million.
The fair values of derivative instruments were as follows (in thousands):
Fair Value
ClassificationJune 28, 2025December 28, 2024
Derivatives not designated as hedging instruments:
Foreign currency forward contractsOther current assets$— $438 
(Losses) gains associated with derivative instruments not designated as hedging instruments were as follows (in thousands):
Three Months EndedSix Months Ended
ClassificationJune 28, 2025June 29, 2024June 28, 2025June 29, 2024
(Loss) gain recognized in incomeOther income (expense), net$(205)$82 $(530)$1,347 
The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands): 
Gain recognized in OCI on Derivative (1)
Three Months EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Foreign currency forward contracts$— $— $— $3,213 
(1)The amount represents the change in fair value of derivative contracts due to changes in spot rates.
(Loss) gain recognized in earnings on cash flow hedging instruments
Three Months EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
RevenueRevenue
Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded$127,558 $166,361 $229,127 $316,375 
(Loss) gain on cash flow hedging relationships:
Foreign currency forward contracts:
Amount of (loss) gain reclassified from AOCI into earnings$(644)$3,422 $766 $8,308