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Note 10 - Derivative Financial Instruments
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3 Months Ended | |||||||||||||||||||||
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Mar. 29, 2015
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Text Block] |
10. Derivative financial instruments The Company enters into forward foreign exchange contracts to reduce its exposure to foreign exchange currency rate fluctuations related to forecasted Canadian dollar and Mexican Peso denominated payroll, rent and utility cash flows for the nine remaining months of fiscal 2015 and first three months of fiscal 2016. These contracts are effective economic hedges but do not qualify for hedge accounting under ASC 815 “Derivatives and Hedging”. Accordingly, changes in the fair value of these derivative contracts are recognized into net loss in the consolidated statement of operations and comprehensive loss. The Company does not enter into forward foreign exchange contracts for trading or speculative purposes. The following table presents a summary of the outstanding foreign currency forward contracts as at March 29, 2015:
The unrealized loss recognized in earnings as a result of revaluing the instruments to fair value on March 29, 2015 was $318 (March 30, 2014 – $243 gain) which was included in cost of sales in the interim consolidated statement of operations and comprehensive loss. The realized loss on settled contracts was $854 (March 30, 2014 – realized gain $450), which is also included in of cost of sales. Fair value is determined using the market approach with valuation based on market observables (Level 2 quantitative inputs in the hierarchy set forth under ASC 820 “Fair Value Measurements”). |
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