Quarterly report pursuant to Section 13 or 15(d)

Foreign Currency Contracts

v3.4.0.3
Foreign Currency Contracts
 3 Months Ended
Apr. 02, 2016
Foreign Currency Contracts [Abstract]  
Foreign Currency Contracts



NOTE  E – FOREIGN CURRENCY CONTRACTS

Derivative financial instruments are recognized as either assets or liabilities in the consolidated balance sheet at their respective fair values. As a matter of policy, the Company uses derivatives for risk management purposes. The Company does not use derivatives for speculative purposes. The Company uses foreign currency contracts to hedge the effects of fluctuations in exchange rates on intercompany transactions. Substantially all of these instruments have terms of 90 days or less. The Company does not designate any of its derivatives as qualifying hedges for accounting purposes. Changes in the fair value of derivative instruments are recognized currently through earnings.



The notional amount of the foreign currency contracts as of January 2, 2016 and April 2, 2016 was $7,488 and $68,196, respectively.  The fair values of derivative instruments in the condensed consolidated balance sheets are as follows:







 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

 

Asset /(Liability) Fair Value

 



 

 

 

 

 

 

 



 

Balance Sheet

 

January 2,

 

April 2,

 



 

Classification

 

2016

 

2016

 



 

 

 

 

 

 

 

Foreign currency contracts

 

Prepaid expenses and other current assets

 

$                  33

 

$                     -

 



 

Other current liabilities

 

 -

 

 (1,132)

 



 

 

 

 

 

 

 



 

 

 

$                  33

 

$            (1,132)

 



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

 

 

 

 

 

The net gain (loss) recognized in the condensed consolidated statements of comprehensive income on

 

derivative instruments not designated as hedges are as follows for the periods indicated: periods indicated:

 



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

 

Quarter Ended

 



 

 

 

 

 

 

 



 

Income Statement

 

April 4,

 

April 2,

 



 

Classification

 

2015

 

2016

 



 

 

 

 

 

 

 

Foreign currency contracts

 

Other, net

 

$                  64

 

$            (1,348)