v3.26.1
DERIVATIVES AND RISK MANAGEMENT
 3 Months Ended
Apr. 04, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND RISK MANAGEMENT DERIVATIVES AND RISK MANAGEMENT
Derivative Instruments. The primary risks managed by using derivative instruments are the fluctuations in global currencies that will ultimately be used by non-U.S. dollar functional currency subsidiaries to settle future payments of intercompany inventory transactions denominated in U.S. dollars. The Company’s derivative financial instruments consist of foreign currency forward contracts. The Company's policy is to enter into forward contracts for an agreed-upon exchange rate with terms that coincide with the underlying exposure being hedged for a period of up to 12 months. Fluctuations in exchange rates will either increase or decrease the Company’s U.S. dollar equivalent cash flows from these inventory transactions, which will affect the Company’s U.S. dollar earnings. Gains or losses on the forward contracts were expected to offset these fluctuations to the extent the cash flows were hedged by the forward contracts. For a derivative instrument that is designated and qualifies as a cash flow hedge, the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss), net of taxes and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments that are not designated as hedges, any changes in fair value are recognized in earnings when they occur.
As of April 4, 2026, the Company had the following outstanding non-designated forward contracts that were entered into to hedge future payments of inventory transactions (in millions):
Functional CurrencyContract Currency
TypeAmountTypeAmount
Euro22.4 U.S. dollar26.0 
Canadian dollar21.8 U.S. dollar16.0 
Mexican peso215.9 U.S. dollar12.2 
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 April 4, 2026For the 14 Weeks Ended April 5, 2025
Cash flow hedges:  
Forward contracts$— $140 
Total gain (loss) recognized in other comprehensive income (loss), net of taxes$— $140 
The following tables disclose the gains and losses on derivative instruments recorded in accumulated other comprehensive income (loss), net of taxes during the term of the hedging relationship and reclassified into earnings, and gains and losses on
derivatives not designated as hedging instruments recorded directly to earnings (in thousands):
Derivative Instruments Condensed Consolidated
Statements of Income (Loss)
and Comprehensive
Income (Loss) Location		Effect of Derivative
Instruments		For the 13 Weeks Ended April 4, 2026For the 14 Weeks Ended April 5, 2025
Forward contracts designated as cash flow hedging instrumentsOther income (expense)-netTotal gain (loss) reclassified from accumulated other comprehensive income (loss)$— $614 
Forward contracts not designated as hedging instrumentsOther income (expense)-netTotal gain (loss) recognized in income$431 $18 
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 April 4, 2026For the 14 Weeks Ended April 5, 2025
Cost of SalesOther Income (Expense)-netCost of SalesOther 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$90,058 $1,156 $90,301 $(3,268)
Gain (loss) on cash flow hedging relationships:
Forward contracts designated as cash flow hedging instruments:
Total gain (loss) reclassified from other comprehensive income (loss)
$— $— $— $614 
Forward contracts not designated as hedging instruments:
Total gain (loss) recognized in income$— $431 $— $18