SMTC Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Financial Instruments and Risks (Tables)

Financial Instruments and Risks (Tables)

12 Months Ended

Jan. 03, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Change, Potential Effect on Earnings

The following table highlights the impact of a hypothetical 10% change in interest rates on our reported earnings.

10% increase in interest rate (millions)		$	0.5
10% decrease in interest rate (millions)		$	(0.5	)

Schedule of Foreign Exchange Contracts, Potential Effect on Cost of Sales

The following table highlights the impact of a hypothetical 10% change in exchange rates on cost of sales for the Company:

10% increase in both the CAD and PESO foreign exchange rates (millions)		$	2.4
10% decrease in both the CAD and PESO foreign exchange rates (millions)		$	(2.9	)

Schedule of Derivative Instruments

The following table presents a summary of the outstanding foreign currency forward exchange contracts as at January 3, 2021:

Currency		Buy/Sell		Foreign Currency Amount		Notional Contract Value in USD
Mexican Peso		Buy		MXN 105,000		$	11,591

Schedule of Derivative Rates at Fair Value

	January 3, 2021		December 29, 2019
Average USD:PESO contract rate		25.20		—
Average USD:PESO mark-to-market rate		20.10		—

The carrying values of the Company’s cash, accounts receivable, accounts payable and accrued liabilities due within one-year approximate fair values due to the short-term maturity of these instruments. The Company’s financial instruments at January 3, 2021, are comprised of the following:

	As at January 3, 2021				As at December 29, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Level 1
Cash	$	600		600	$	1,368		1,368
Level 2
Derivative assets		1,055		1,055		—		—
Revolving credit facility		34,694		34,694		34,701		34,701
Current and long term debt		33,430		37,188		35,000		38,750
Warrant liability		3,233		3,233		1,730		1,730

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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+ Details