XML 36 R22.htm IDEA: XBRL DOCUMENT
v3.23.3

Commodity Derivative Instruments | 9 Months Ended
--- | ---
Sep. 29, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Commodity Derivative Instruments | Commodity Derivative InstrumentsThe 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 this risk through a variety of strategies, including the use of commodity derivative instruments. The Company does not use commodity derivative instruments for trading or speculative purposes. These commodity derivative instruments are not designated as hedging instruments under GAAP and are used as “economic hedges” to manage certain commodity price risk. 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 counterparties. Commodity derivative instruments held by the Company are marked to market on a monthly basis and are recognized in earnings consistent with the expense classification of the underlying hedged item. The Company generally pays a fee for these commodity derivative instruments, which is amortized over the corresponding period of each commodity derivative instrument. Settlements of commodity derivative instruments are included in cash flows from operating activities in the condensed consolidated statements of cash flows. The following table summarizes pre-tax changes in the fair values of the Company’s commodity derivative instruments and the classification of such changes in the condensed consolidated statements of operations:
|  | Third Quarter |  | First Nine Months
(in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Cost of sales |  | $ | (25) |  |  | $ | 1,100 |  |  | $ | (1,517) |  |  | $ | (5,069) |
Selling, delivery and administrative expenses |  | 703 |  |  | (4,711) |  |  | (2,211) |  |  | 2,512 |
Total gain (loss) |  | $ | 678 |  |  | $ | (3,611) |  |  | $ | (3,728) |  |  | $ | (2,557) |
All commodity derivative instruments are recorded at fair value as either assets or liabilities in the condensed consolidated balance sheets. The Company has master agreements with the counterparties to its commodity derivative instruments 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 condensed consolidated balance sheets and the net amounts of derivative liabilities are recognized in either other accrued liabilities or other liabilities in the condensed consolidated balance sheets. The following table summarizes the fair values of the Company’s commodity derivative instruments and the classification of such instruments in the condensed consolidated balance sheets:
(in thousands) |  | September 29, 2023 |  | December 31, 2022
Prepaid expenses and other current assets |  | $ | 1,080 |  |  | $ | 4,808 |
Total assets |  | $ | 1,080 |  |  | $ | 4,808 |
The following table summarizes the Company’s gross commodity derivative instrument assets and gross commodity derivative instrument liabilities in the condensed consolidated balance sheets:
(in thousands) |  | September 29, 2023 |  | December 31, 2022
Gross commodity derivative instrument assets |  | $ | 1,080 |  |  | $ | 4,808 |
Gross commodity derivative instrument liabilities |  | — |  |  | — |
The following table summarizes the Company’s outstanding commodity derivative instruments:
(in thousands) |  | September 29, 2023 |  | December 31, 2022
Notional amount of outstanding commodity derivative instruments |  | $ | 20,076 |  |  | $ | 61,128 |
Latest maturity date of outstanding commodity derivative instruments |  | December 2023 |  | December 2023

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration