
	January 2, 2022		January 3, 2021


Financial assets
Amortized cost:
Cash and cash equivalents	$	179,246	$	505,264
Trade accounts receivable	329,967		196,480
Financial assets included in prepaid expenses, deposits and other current assets	69,995		88,781
Long-term non-trade receivables included in other non-current assets	390		1,435
Derivative financial assets included in prepaid expenses, deposits and other current assets	62,758		4,947


Financial liabilities
Amortized cost:
Accounts payable and accrued liabilities (1)	$	436,073	$	326,069
Long-term debt - bearing interest at variable rates	400,000		800,000
Long-term debt - bearing interest at fixed rates (2)	200,000		200,000
Derivative financial liabilities included in accounts payable and accrued liabilities	4,328		17,653

1) Accounts payable and accrued liabilities include $18.1 million (January 3, 2021 - $27.6 million) under supply-chain financing arrangements (reverse factoring) with a financial institution, whereby receivables due from the Company to certain suppliers can be collected by the suppliers from a financial institution before their original due date. These balances are classified as accounts payable and accrued liabilities and the related payments as cash flows from operating activities, given the principal business purpose of the arrangement is to provide funding to the supplier and not the Company, the arrangement does not significantly extend the payment terms beyond the normal terms agreed with other suppliers, and no additional deferral or special guarantees to secure the payments are included in the arrangement. Accounts payable and accrued liabilities also include balances payable of $48.8 million (January 3, 2021 - $20.0 million) resulting mainly from a one-week timing difference between the collection of sold receivables and the weekly remittance to our bank counterparty under our receivables purchase agreement that is disclosed in note 7 to these consolidated financial statements.

The Company has determined that the fair value of its short-term financial assets and liabilities approximates their respective carrying amounts as at the reporting dates due to the short-term maturities of these instruments, as they bear variable interest-rates or because the terms and conditions are comparable to current market terms and conditions for similar items.

The fair values of the long-term non-trade receivables included in other non-current assets and the Company’s long-term debt bearing interest at variable rates also approximate their respective carrying amounts because the interest rates applied to measure their carrying amounts approximate current market interest rates.

The fair value of the long-term debt bearing interest at fixed rates is determined using the discounted future cash flows method and at discount rates based on yield to maturities for similar issuances. The fair value of the long-term debt bearing interest at fixed rates was measured using Level 2 inputs in the fair value hierarchy. In determining the fair value of the long-term debt bearing interest at fixed rates, the Company takes into account its own credit risk and the credit risk of the counterparties.

Derivative financial instruments are designated as effective hedging instruments and consist of foreign exchange and commodity forward, option, and swap contracts, as well as floating-to-fixed interest rate swaps to fix the variable interest rates on a designated portion of borrowings under the term loan and unsecured notes. The fair value of the forward contracts is measured using a generally accepted valuation technique which is the discounted value of the difference between the contract’s value at maturity based on the rate set out in the contract and the contract’s value at maturity based on the rate that the counterparty would use if it were to renegotiate the same contract terms at the measurement date under current conditions. The fair value of the option contracts is measured using option pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs, including volatility estimates and option adjusted credit spreads. The fair value of the interest rate swaps is determined based on market data, by measuring the difference between the fixed contracted rate and the forward curve for the applicable floating interest rates.

The Company also has a total return swap (“TRS”) outstanding that is intended to reduce the variability of net earnings associated with deferred share units, which are settled in cash. The TRS is not designated as a hedging instrument and, therefore, the fair value adjustment at the end of each reporting period is recognized in selling, general and administrative expenses. The fair value of the TRS is measured by reference to the market price of the Company’s common shares, at each reporting date. The TRS has a one-year term, may be extended annually, and the contract allows for early termination at the option of the Company. As at January 2, 2022, the notional amount of TRS outstanding was 319,639 shares (January 3, 2021 - 284,663 shares) and the carrying amount and fair value included in prepaid expenses, deposits and other current assets was $0.03 million (January 3, 2021 - $0.4 million included in prepaid expenses, deposits and other current assets).

Derivative financial instruments were measured using Level 2 inputs in the fair value hierarchy. In determining the fair value of derivative financial instruments the Company takes into account its own credit risk and the credit risk of the counterparties.

During fiscal 2021 and 2020, the Company entered into foreign exchange and commodity forward, option, and swap contracts in order to minimize the exposure of forecasted cash inflows and outflows in currencies other than the U.S. dollar and to manage its exposure to movements in commodity prices, as well as floating-to-fixed interest rate swaps to fix the variable interest rates on a designated portion of borrowings under the term loan and unsecured notes.

The forward foreign exchange contracts were designated as cash flow hedges and qualified for hedge accounting. The forward foreign exchange contracts outstanding as at January 2, 2022 and January 3, 2021 consisted primarily of contracts to reduce the exposure to fluctuations in Canadian dollars, Euros, Australian dollars, Pounds sterling, and Mexican pesos against the U.S. dollar.

The commodity forward, option, and swap contracts were designated as cash flow hedges and qualified for hedge accounting. The commodity contracts outstanding as at January 2, 2022 and January 3, 2021 consisted primarily of forward, collar, and swap contracts to reduce the exposure to movements in commodity prices.

The floating-to-fixed interest rate swaps were designated as cash flow hedges and qualified for hedge accounting. The floating-to-fixed interest rate swaps contracts outstanding as at January 2, 2022 and January 3, 2021 served to fix the variable interest rates on the designated interest payments of a portion of the Company's long-term debt.


									Carrying and fair value						Maturity
		Notional foreign		Average		Notional			Prepaid expenses,			Accounts
		currency amount		exchange		U.S. $			deposits and other			payable and			0 to 12
		equivalent		rate		equivalent			current assets			accrued liabilities			months

Forward foreign exchange contracts:
	Sell GBP/Buy USD		26,752		1.3769		$	36,834		$	808		$	(54)	$	754
	Sell EUR/Buy USD		29,390		1.1916		35,020			1,592			—		1,592
	Sell CAD/Buy USD		39,274		0.8015		31,478			665			—		665
	Buy CAD/Sell USD		31,016		0.7840		24,316			92			(88)		4
	Sell AUD/Buy USD		8,885		0.7427		6,599			161			(13)		148
	Sell MXN/Buy USD		151,791		0.0480		7,279			39			(11)		28
							$	141,526		$	3,357		$	(166)	$	3,191


									Carrying and fair value						Maturity
		Notional foreign		Average		Notional			Prepaid expenses,			Accounts
		currency amount		exchange		U.S. $			deposits and other			payable and			0 to 12
		equivalent		rate		equivalent			current assets			accrued liabilities			months

Forward foreign exchange contracts:
	Sell GBP/Buy USD		33,069		1.3090		$	43,287		$	—		$	(1,784)	$	(1,784)
	Sell EUR/Buy USD		33,571		1.1816		39,668			—			(1,736)		(1,736)
	Sell CAD/Buy USD		45,591		0.7594		34,623			—			(1,111)		(1,111)
	Buy CAD/Sell USD		21,669		0.7077		15,336			1,626			—		1,626
	Sell AUD/Buy USD		7,387		0.7218		5,332			—			(346)		(346)
	Sell MXN/Buy USD		168,727		0.0455		7,683			28			(693)		(665)
							$	145,929		$	1,654		$	(5,670)	$	(4,016)


			Carrying and fair value							Maturity
				Prepaid expenses,			Accounts
	Type of			deposits and other			payable and			0 to 12
	commodity	Notional amount (1)		current assets			accrued liabilities			months

Forward contracts	Cotton	251.0 million pounds			$	56,419		$	—	$	56,419

Swap & option contracts	Energy	5.7 million gallons			1,660			(102)		1,558
					$	58,079		$	(102)	$	57,977


			Carrying and fair value							Maturity
				Prepaid expenses,			Accounts
	Type of			deposits and other			payable and			0 to 12
	commodity	Notional amount (1)		current assets			accrued liabilities			months

Forward contracts	Cotton	16.2 million pounds			$	1,582		$	—	$	1,582
Swap contracts	Synthetic fibres	3.9 million pounds			—			(781)		(781)
Swap & option contracts	Energy	6.4 million gallons			1,300			(258)		1,042
					$	2,882		$	(1,039)	$	1,843


								Carrying and fair value
	Notional							Prepaid expenses,			Accounts
	amount of		Maturity		Fixed		Floating	deposits and other			payable and
	borrowings		date	Pay / Receive	rate		rate	current assets			accrued liabilities
Term Loan(1)
	$	75,000	April 30, 2023	Pay fixed rate / receive floating rate	2.85	%	US LIBOR		$	—		$	(2,272)
	50,000		April 30, 2024	Pay fixed rate / receive floating rate	1.51	%	US LIBOR		32			(744)
	25,000		April 30, 2025	Pay fixed rate / receive floating rate	1.06	%	US LIBOR		167			(154)
	50,000		April 30, 2025	Pay fixed rate / receive floating rate	0.78	%	US LIBOR		624			—
	25,000		June 30, 2026	Pay fixed rate / receive floating rate	1.59	%	US LIBOR		—			(22)
	25,000		June 30, 2026	Pay fixed rate / receive floating rate	1.23	%	US LIBOR		171			—
Unsecured Notes
	50,000		August 25, 2023	Pay fixed rate / receive floating rate	1.18	%	US LIBOR		—			(380)
	50,000		August 25, 2026	Pay fixed rate / receive floating rate	1.34	%	US LIBOR		328			(454)
									$	1,322		$	(4,026)


								Carrying and fair value
	Notional							Prepaid expenses,			Accounts
	amount of		Maturity		Fixed		Floating	deposits and other			payable and
	borrowings		date	Pay / Receive	rate		rate	current assets			accrued liabilities
Term Loan(1)
	$	150,000	June 17, 2021	Pay fixed rate / receive floating rate	0.96	%	US LIBOR		$	—		$	(630)
	25,000		April 6, 2022	Pay fixed rate / receive floating rate	0.27	%	US LIBOR		—			(48)
	75,000		April 30, 2023	Pay fixed rate / receive floating rate	2.85	%	US LIBOR		—			(3,800)
	50,000		April 30, 2024	Pay fixed rate / receive floating rate	1.51	%	US LIBOR		—			(1,886)
	25,000		April 30, 2025	Pay fixed rate / receive floating rate	1.06	%	US LIBOR		—			(755)
	25,000		May 30, 2025	Pay fixed rate / receive floating rate	0.47	%	US LIBOR		—			(30)
Unsecured Notes
	50,000		August 25, 2023	Pay fixed rate / receive floating rate	1.18	%	US LIBOR		—			(1,330)
	50,000		August 25, 2026	Pay fixed rate / receive floating rate	1.34	%	US LIBOR		—			(2,465)
									$	—		$	(10,944)


							Change in
		Carrying amount of					value used for		Cash flow
			the hedged item				calculating hedge		hedge reserve
			Assets		Liabilities		ineffectiveness		(AOCI)

Cash flow hedges:

Foreign currency risk:
	Forecast sales		$	—	$	—	$	2,554	$	(2,554)
	Forecast expenses		—		—		4		(4)

Commodity risk:
	Forecast purchases		—		—		64,813		(64,813)

Interest rate risk:
	Forecast interest payments		—		—		(2,562)		2,562
			$	—	$	—	$	64,809	$	(64,809)

No ineffectiveness was recognized in net earnings as the change in value of the hedging instrument used for calculating ineffectiveness was the same or smaller as the change in value of the hedged items used for calculating the ineffectiveness.


							Change in
		Carrying amount of					value used for		Cash flow
			the hedged item				calculating hedge		hedge reserve
			Assets		Liabilities		ineffectiveness		(AOCI)

Cash flow hedges:

Foreign currency risk:
	Forecast sales		$	—	$	—	$	(4,104)	$	4,104
	Forecast expenses		—		—		1,626		(1,626)

Commodity risk:
	Forecast purchases		—		—		4,205		(4,205)

Interest rate risk:
	Forecast interest payments		—		—		(10,765)		10,765
			$	—	$	—	$	(9,038)	$	9,038


	2021		2020

Interest expense on financial liabilities recorded at amortized cost (1)	$	14,923	$	30,205
Bank and other financial charges (2)	8,823		14,627
Interest accretion on discounted lease obligations	2,650		3,227
Interest accretion on discounted provisions	153		242
Foreign exchange loss	782		229
	$	27,331	$	48,530


	2021		2020

Net gain (loss) on derivatives designated as cash flow hedges:
Foreign currency risk	$	3,599	$	502
Commodity price risk	83,130		(12,699)
Interest rate risk	8,203		(12,381)

Income taxes	(36)		(5)

Amounts reclassified from OCI to inventory, related to commodity price risk	(22,515)		9,837

Amounts reclassified from OCI to net earnings, related to foreign currency risk, interest rate risk, and commodity risk, and included in:
Net sales	3,326		(242)
Cost of sales	—		8,483
Selling, general and administrative expenses	(1,992)		331
Financial expenses, net	146		(2,358)
Income taxes	(14)		29
Cash flow hedging gain (loss)	$	73,847	$	(8,503)

The change in the time value element of option and swap contracts designated as cash flow hedges to reduce the exposure in movements of commodity prices was not significant for the years ended January 2, 2022 and January 3, 2021. The change in the forward element of derivatives designated as cash flow hedges to reduce foreign currency risk was not significant for the years ended January 2, 2022 and January 3, 2021.

During fiscal 2020, the Company determined that it no longer met the criteria for hedge accounting for certain commodity forward, option, and swap contracts and certain forward foreign exchange contracts (collectively the "hedging instruments") as the commodity purchases and foreign currency sales which the hedging instruments were respectively hedging, were no longer expected to occur due to economic conditions resulting from the COVID-19 pandemic. Changes in the fair value of such commodity forward, option, and swap contracts and forward foreign exchange contracts resulted in a net loss of $9.0 million, which were transferred out of accumulated other comprehensive income and recognized immediately in net earnings during the second quarter of fiscal 2020.