Note 10 - Derivative Financial Instruments |
6 Months Ended | |||||||||||||||||||||||
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Jun. 28, 2015 | ||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Text Block] |
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 six remaining months of fiscal 2015 and first six 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 earnings in the consolidated statement of operations and comprehensive income 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 June 28, 2015:
The unrealized gain recognized in earnings for the three month period as a result of revaluing the outstanding instruments to fair value on June 28, 2015 was $789 (June 29, 2014 – unrealized gain $851), and the unrealized gain for the six month period ended June 28, 2015 was $471 (June 29, 2014 – unrealized gain $1,094), which was included in cost of sales in the consolidated statement of operations and comprehensive income (loss). The realized loss on the settled contracts for the three months period ended June 28, 2015 was $1,028 (June 29, 2014 – realized loss $325), and the realized loss for the six month period ended June 28, 2015 was $1,882 (June 29, 2014 – realized loss $775), and is also included in cost of sales, in the consolidated statement of operations and comprehensive income (loss). Fair value was 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”). The derivative liability as at June 28, 2015 was $2,232 (December 28, 2014 - $2,703) which reflected the fair market value of the unsettled forward foreign exchange contracts. |
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