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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments |
14. | Derivative Financial Instruments
The Company is subject to the risk of increased costs arising from adverse changes in certain commodity prices. In the normal course of business, the Company manages these risks through a variety of strategies, including the use of derivative instruments. The Company does not use derivative instruments for trading or speculative purposes. All derivative instruments are recorded at fair value as either assets or liabilities in the Company’s consolidated balance sheets. These derivative instruments are not designated as hedging instruments under GAAP and are used as “economic hedges” to manage certain commodity price risk. Derivative instruments held are marked to market on a monthly basis and recognized in earnings consistent with the expense classification of the underlying hedged item. Settlements of derivative agreements are included in cash flows from operating activities on the Company’s consolidated statements of cash flows. The Company uses several different financial institutions for commodity derivative instruments to minimize the concentration of credit risk. While the Company would be exposed to credit loss in the event of nonperformance by these counterparties, the Company does not anticipate nonperformance by these parties. The following table summarizes pre-tax changes in the fair value of the Company’s commodity derivative financial instruments and the classification of such changes in the consolidated statements of operations.
|  |  |  | Fiscal Year |
(in thousands) |  | Classification of Gain (Loss) |  | 2017 |  |  | 2016 |  |  | 2015 |
Commodity hedges |  | Cost of sales |  | $ | 2,815 |  |  | $ | 2,896 |  |  | $ | (2,354 | )
Commodity hedges |  | Selling, delivery and administrative expenses |  |  | 315 |  |  |  | 1,832 |  |  |  | (1,085 | )
Total gain (loss) |  |  |  | $ | 3,130 |  |  | $ | 4,728 |  |  | $ | (3,439 | )
The following table summarizes the fair values and classification in the consolidated balance sheets of derivative instruments held by the Company:
(in thousands) |  | Balance Sheet Classification |  | December 31, 2017 |  |  | January 1, 2017 |
Assets: |  |  |  |  |  |  |  |  |  |
Commodity hedges at fair market value |  | Prepaid expenses and other current assets |  | $ | 4,420 |  |  | $ | 1,289 |
Total assets |  |  |  | $ | 4,420 |  |  | $ | 1,289 |
The Company has master agreements with the counterparties to its derivative financial agreements that provide for net settlement of derivative transactions. Accordingly, the net amounts of derivative assets are recognized in either prepaid expenses and other current assets or other assets in the Company’s consolidated balance sheets and the net amounts of derivative liabilities are recognized in other accrued liabilities or other liabilities in the consolidated balance sheets. The following table summarizes the Company’s gross derivative assets and gross derivative liabilities in the consolidated balance sheets:
(in thousands) |  | December 31, 2017 |  |  | January 1, 2017 |
Gross derivative assets |  | $ | 4,481 |  |  | $ | 1,297 |
Gross derivative liabilities |  |  | 61 |  |  |  | 8 |
The following table summarizes the Company’s outstanding commodity derivative agreements:
(in thousands) |  | December 31, 2017 |  |  | January 1, 2017 |
Notional amount of outstanding commodity derivative agreements |  | $ | 59,564 |  |  | $ | 13,146 |
Latest maturity date of outstanding commodity derivative agreements |  | December 2018 |  |  | December 2017 |
Subsequent to December 31, 2017, the Company entered into additional agreements to hedge certain commodity costs for 2018. The notional amount of these agreements was $91.7 million. Concurrently, the Company terminated certain hedge agreements for commodity costs for 2018. The notional amount of the terminated agreements was $22.6 million.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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