v3.23.3
DERIVATIVE INSTRUMENTS (Tables)
9 Months Ended
Oct. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of the Classification of Derivative Assets and Liabilities within the Consolidated Balance Sheets
The following table presents the classification of derivative assets and liabilities within the Consolidated Balance Sheets as of October 1, 2023 and December 31, 2022:
October 1, 2023December 31, 2022
Assets (1)Liabilities (1)Assets (1)Liabilities (1)
Derivatives designated as cash flow hedging instruments:
Foreign exchange contracts$3,080 $3,022 $3,921 $261 
Derivatives not designated as hedging instruments:
Commodities futures and options (2)874 3,861 685 662 
Deferred compensation derivatives1,776 — 1,222 — 
Foreign exchange contracts116 59 246 — 
2,766 3,920 2,153 662 
Total$5,846 $6,942 $6,074 $923 

(1)Derivative assets are classified on our Consolidated Balance Sheets within prepaid expenses and other as well as other non-current assets. Derivative liabilities are classified on our Consolidated Balance Sheets within accrued liabilities and other long-term liabilities.
(2)As of October 1, 2023, amounts reflected on a net basis in liabilities were assets of $36,052 and liabilities of $36,023, which are associated with cash transfers receivable or payable on commodities futures contracts reflecting the change in quoted market prices on the last trading day for the period. The comparable amounts reflected on a net basis in liabilities at December 31, 2022 were assets of $25,308 and liabilities of $25,296. At October 1, 2023 and December 31, 2022, the remaining amount reflected in assets and liabilities related to the fair value of other non-exchange traded derivative instruments, respectively.
Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Income The effect of derivative instruments on the Consolidated Statements of Income for the three months ended October 1, 2023 and October 2, 2022 was as follows:
Non-designated HedgesCash Flow Hedges
Gains (losses) recognized in income (a)Gains (losses) recognized in other comprehensive income (“OCI”)Gains (losses) reclassified from accumulated OCI (“AOCI”) into income (b)
202320222023202220232022
Commodities futures and options
$17,103 $(14,044)$— $— $— $— 
Foreign exchange contracts (583)(39)2,945 891 (1,924)421 
Interest rate swap agreements
— — — — (2,274)(2,679)
Deferred compensation derivatives
(1,103)(1,098)— — — — 
Total
$15,417 $(15,181)$2,945 $891 $(4,198)$(2,258)
The effect of derivative instruments on the Consolidated Statements of Income for the nine months ended October 1, 2023 and October 2, 2022 was as follows:
Non-designated HedgesCash Flow Hedges
Gains (losses) recognized in income (a)Gains (losses) recognized in other comprehensive income (“OCI”)Gains (losses) reclassified from accumulated OCI (“AOCI”) into income (b)
202320222023202220232022
Commodities futures and options
$52 $28,027 $— $— $— $— 
Foreign exchange contracts 359 (173)(3,711)245 (196)(956)
Interest rate swap agreements
— — 3,173 — (13,255)(8,187)
Deferred compensation derivatives
1,776 (6,142)— — — — 
Total
$2,187 $21,712 $(538)$245 $(13,451)$(9,143)

(a)Gains (losses) recognized in income for non-designated commodities futures and options contracts were included in cost of sales. Gains (losses) recognized in income for non-designated foreign currency forward exchange contracts and deferred compensation derivatives were included in selling, marketing and administrative expenses.
(b)Gains (losses) reclassified from AOCI into income for foreign currency forward exchange contracts were included in selling, marketing and administrative expenses. Losses reclassified from AOCI into income for interest rate swap agreements were included in interest expense.