v3.26.1
Financial Instruments and Derivatives
 6 Months Ended
Jun. 28, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments and Derivatives Financial Instruments and Derivatives
The following table sets forth the carrying amounts and fair values of the Company’s significant financial instruments for which the carrying amount differs from the fair value.
June 28, 2026December 31, 2025
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Long-term debt, net of current portion$3,484,464 $3,413,067 $3,788,973 $3,728,480 

The carrying value of cash and cash equivalents and short-term debt approximates fair value. The fair value of long-term debt is determined based on recent trade information in the financial markets of the Company’s public debt or is determined by discounting future cash flows using interest rates available to the Company for issues with similar terms and maturities which is considered a Level 2 fair value measurement.
Cash Flow Hedges
At June 28, 2026 and December 31, 2025, the Company had derivative financial instruments outstanding to hedge anticipated transactions and certain asset and liability related cash flows. These contracts, which have maturities ranging from July 2026 to September 2027, qualify as cash flow hedges under GAAP. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.
Commodity Cash Flow Hedges
Certain derivative contracts entered into to manage the cost of anticipated purchases of natural gas and aluminum have been designated by the Company as cash flow hedges. At June 28, 2026, there were no designated natural gas swaps covering anticipated natural gas usage in 2026. The Company has designated swap contracts covering 6,129 metric tons of aluminum as cash flow hedges. These contracts represented approximately 49.1% and 8.1% of anticipated aluminum usage for 2026 and 2027, respectively. The fair value of the Company’s commodity cash flow hedges netted to gain positions of $1,433 and $1,683 at June 28, 2026 and December 31, 2025, respectively. The amount of the gain included in accumulated other comprehensive income at June 28, 2026 expected to be reclassified to the income statement during the next twelve months is $1,341. The Company also has certain natural gas and aluminum derivatives contracts that are not designated as cash flow hedges. See “Non-Designated Derivatives” below for a discussion of these hedges.
Foreign Currency Cash Flow Hedges
The Company has entered into forward contracts to hedge certain anticipated foreign currency denominated sales and purchases expected to occur from July 2026 to June 2027. The net positions of these contracts at June 28, 2026 were as follows (in thousands):
CurrencyActionQuantity
USD Contracts
Colombian pesopurchase5,824,431 
Mexican pesopurchase96,238 
Danish kronepurchase63,029 
Polish zlotypurchase61,165 
Turkish lirapurchase43,540 
Canadian dollarpurchase8,475 
US Dollarpurchase6,178 
Europurchase1,813 
Swedish kronasell(2,965)
British poundsell(4,873)
Euro Contracts
Hungarian forintpurchase5,292,913 
US Dollarpurchase4,204 
Europurchase1,255 
Swiss franc
purchase1,082 
British poundsell(3,510)
Polish zlotysell(23,665)
The fair value of foreign currency cash flow hedges related to forecasted sales and purchases netted to gain positions of $1,826 and $49 at June 28, 2026 and December 31, 2025, respectively. Gains of $1,826 are expected to be reclassified from accumulated other comprehensive income to the income statement during the next twelve months.
Net Investment Hedge
In April 2024 the Company entered into cross-currency swap agreements with a total notional amount of $500,000, maturing on May 1, 2027, to effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
In December 2024, the Company entered into additional cross-currency swap agreements with a total notional amount of $1,500,000, including $500,000 maturing on September 1, 2026, $500,000 maturing on September 1, 2029, and $500,000 maturing on May 1, 2030. The swaps effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
On June 30, 2025, the Company entered into additional cross-currency swap agreements with a total notional amount of $285,000, maturing on February 1, 2027. The swaps effectively convert a portion of the Company’s fixed-rate U.S. dollar-denominated debt, including the semi-annual interest payments, to fixed-rate euro-denominated debt at the prevailing market rate at execution.
All of the Company’s cross-currency swap agreements are designated as net investment hedges for accounting purposes and have the risk management objective of managing foreign currency risk relating to net investments in certain European subsidiaries denominated in euros.
The gain or loss on the net investment hedge derivative instruments is included in the “Foreign currency translation” component of “Accumulated other comprehensive (loss)/income” until the net investment is sold, diluted, or liquidated. Net interest income on the cross-currency swaps totaling $11,115 and $21,958 for the three and six months
ended June 28, 2026 are excluded from the net investment hedge effectiveness assessment and are recorded in “Interest expense” in the Company’s Condensed Consolidated Statements of Income. The assumptions used in measuring fair value of the cross-currency swaps are considered level 2 inputs, which are based upon the Euro-to-U.S. dollar exchange rate market.
The fair value of the Company’s net investment hedges was a loss position of $(144,671) and $(207,203) at June 28, 2026 and December 31, 2025, respectively. A foreign currency translation loss of $(107,780) (net of income taxes of $36,891) and a loss of $(154,366) (net of income taxes of $52,837) were reported as components of “Accumulated other comprehensive (loss)/income” within “Foreign currency items” at June 28, 2026 and December 31, 2025, respectively.
Non-Designated Derivatives
The Company routinely enters into other derivative contracts which are not designated for hedge accounting treatment under ASC 815, “Derivatives and Hedging.” As such, changes in fair value of these non-designated derivatives are recorded directly to income and expense in the periods that they occur. Cash flows from derivative financial instruments not designated as hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.
Foreign Currency Hedges
The Company routinely enters into forward contracts or swaps to economically hedge the currency exposure of intercompany debt and foreign currency denominated receivables and payables. The net currency positions of these non-designated contracts at June 28, 2026, were as follows (in thousands):
CurrencyActionQuantity
USD Contracts
Colombian pesopurchase71,872,695 
Indonesian rupiahpurchase25,186,110 
Mexican pesopurchase309,052 
Canadian dollarpurchase4,599 
US Dollarpurchase211 
Euro Contracts
Hungarian forintpurchase797,654 
British poundpurchase5,856 
Europurchase3,800 
Swiss franc
purchase976 
US Dollarsell(880)
Polish zlotysell(31,912)
Thai bahtsell(499,467)
Commodity Hedges
The Company has entered into non-designated derivative contracts to manage the cost of anticipated purchases of natural gas and aluminum. At June 28, 2026, these contracts consisted of natural gas swaps covering approximately 3.3 million metric million British thermal units (“MMBTUs”) and represented approximately 69.0% of anticipated usage in North America for the remainder of 2026. In addition, the Company held aluminum swap contracts covering 972 metric tons of aluminum.
The fair value of the Company’s non-designated derivatives position was a loss of $(576) and $(1,113) at June 28, 2026 and December 31, 2025, respectively.
The following table sets forth the location and fair values of the Company’s derivative instruments at June 28, 2026 and December 31, 2025:
DescriptionBalance Sheet LocationJune 28, 2026December 31, 2025
Derivatives designated as hedging instruments:
Commodity ContractsPrepaid expenses$1,831 $1,508 
Commodity ContractsOther Assets94 175 
Commodity ContractsAccrued expenses and other payables(490)— 
Commodity ContractsOther Liabilities(2)— 
Foreign Exchange ContractsPrepaid expenses3,945 1,131 
Foreign Exchange ContractsOther Assets— 33 
Foreign Exchange ContractsAccrued expenses and other payables(2,119)(1,028)
Foreign Exchange ContractsOther Liabilities— (87)
Net investment hedgePrepaid expenses19,333 19,358 
Net investment hedgeAccrued expenses and other payables(76,782)(58,594)
Net investment hedgeOther Liabilities(87,222)(167,967)
Derivatives not designated as hedging instruments:
Commodity ContractsPrepaid expenses221 185 
Commodity ContractsOther Assets101 — 
Commodity ContractsAccrued expenses and other payables(1,672)(1,517)
Commodity ContractsOther Liabilities(135)— 
Foreign Exchange ContractsPrepaid expenses1,330 1,106 
Foreign Exchange ContractsAccrued expenses and other payables(421)(887)
While certain of the Company’s derivative contract arrangements with its counterparties provide for the ability to settle contracts on a net basis, the Company reports its derivative positions on a gross basis. There are no collateral arrangements or requirements in these agreements.
The following tables set forth the effect of the Company’s derivative instruments on financial performance for the three-month periods ended June 28, 2026 and June 29, 2025, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive (loss)/income to the carrying value of the capitalized expenditures:
DescriptionAmount of Gain or
(Loss) Recognized
in OCI on
Derivatives		Location of Gain
or (Loss)
Reclassified from
Accumulated OCI
Into Income		Amount of Gain or
(Loss) Reclassified
from Accumulated
OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Three-month period ended June 28, 2026
Foreign Exchange Contracts$2,527 Net sales$137 
Cost of sales(9)
Commodity Contracts(429)Cost of sales1,447 
Three-month period ended June 29, 2025
Foreign Exchange Contracts$2,902 Net sales$1,368 
Cost of sales(151)
Commodity Contracts(374)Cost of sales— 
 
DescriptionGain or (Loss)
Recognized		Location of Gain or (Loss) Recognized in
Income Statement
Derivatives not Designated as Hedging Instruments:
Three-month period ended June 28, 2026
Commodity Contracts$(824)Cost of sales
Foreign Exchange Contracts2,490 Selling, general and administrative
Three-month period ended June 29, 2025
Commodity Contracts$(1,889)Cost of sales
Foreign Exchange Contracts3,543 Selling, general and administrative
Three-month period ended June 28, 2026Three-month period ended June 29, 2025
DescriptionRevenueCost of salesRevenueCost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income$137 $1,438 $1,368 $(151)
Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss)/income into net income$137 $(9)$1,368 $(151)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive (loss)/income into net income$— $1,447 $— $— 
The following tables set forth the effect of the Company’s derivative instruments on financial performance for the six-month periods ended June 28, 2026 and June 29, 2025, excluding the amount of foreign currency cash flow hedges that were reclassified from accumulated other comprehensive (loss)/income to the carrying value of the capitalized expenditures:
DescriptionAmount of Gain or
(Loss) Recognized
in OCI on
Derivatives		Location of Gain
or (Loss)
Reclassified from
Accumulated OCI
Into Income		Amount of Gain or
(Loss) Reclassified
from Accumulated
OCI Into Income
Derivatives in Cash Flow Hedging Relationships:
Six-month period ended June 28, 2026
Foreign Exchange Contracts$2,263 Net sales$52 
Cost of sales(197)
Commodity Contracts1,967 Cost of sales2,217 
Six-month period ended June 29, 2025
Foreign Exchange Contracts$6,153 Net sales$1,767 
Cost of sales(192)
Commodity Contracts(910)Cost of sales— 
 
DescriptionGain or (Loss)
Recognized		Location of Gain or (Loss) Recognized in
Income Statement
Derivatives not Designated as Hedging Instruments:
Six-month period ended June 28, 2026
Commodity Contracts$480 Cost of sales
Foreign Exchange Contracts4,187 Selling, general and administrative
Six-month period ended June 29, 2025
Commodity Contracts$1,448 Cost of sales
Foreign Exchange Contracts7,111 Selling, general and administrative

Six-month period ended June 28, 2026Six-month period ended June 29, 2025
DescriptionRevenueCost of salesRevenueCost of sales
Total amount of income and expense line items presented in the Condensed Consolidated Statements of Income$52 $2,020 $1,767 $(192)
Gain or (loss) on cash flow hedging relationships:
Foreign exchange contracts:
Amount of gain or (loss) reclassified from accumulated other comprehensive (loss)/income into net income$52 $(197)$1,767 $(192)
Commodity contracts:
Amount of gain reclassified from accumulated other comprehensive (loss)/income into net income$— $2,217 $— $—