
	December 31, 2023		January 1, 2023


Financial assets
Amortized cost:
Cash and cash equivalents	$	89,642	$	150,417
Trade accounts receivable	412,498		248,785
Financial assets included in prepaid expenses, deposits and other current assets	45,136		48,274
Long-term non-trade receivables included in other non-current assets	12,863		118
Fair value through other comprehensive income:
Derivative financial assets included in prepaid expenses, deposits and other current assets	15,797		23,765


Financial liabilities
Amortized cost:
Accounts payable and accrued liabilities(1)	$	403,534	$	462,496
Long-term debt - bearing interest at variable rates	885,000		730,000
Long-term debt - bearing interest at fixed rates(2)	100,000		200,000
Fair value through other comprehensive income:
Derivative financial liabilities included in accounts payable and accrued liabilities	4,760		8,712

1) Accounts payable and accrued liabilities include $12.5 million (January 1, 2023 - $26.9 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 $49.0 million (January 1, 2023 - $35.7 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.

During fiscal 2022 and most of fiscal 2023 the Company also had 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 was 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 December 31, 2023, the notional amount of TRS outstanding was nil shares (January 1, 2023 - 362,608 shares) and the carrying amount and fair value included in accounts payable and accrued liabilities was nil (January 1, 2023 - $4.7 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 2023 and 2022, 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 December 31, 2023 and January 1, 2023 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 December 31, 2023 and January 1, 2023 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 December 31, 2023 and January 1, 2023 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		25,399		1.2506		$	31,765		$	25		$	(585)	$	(560)
	Sell EUR/Buy USD		40,866		1.0987		44,901			63			(640)		(577)
	Sell CAD/Buy USD		52,285		0.7506		39,243			33			(362)		(329)
	Buy CAD/Sell USD		41,199		0.7384		30,422			735			—		735
	Sell AUD/Buy USD		15,011		0.6681		10,029			21			(261)		(240)
	Sell MXN/Buy USD		325,633		0.0543		17,687			—			(980)		(980)

							$	174,047		$	877		$	(2,828)	$	(1,951)


									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		39,600		1.2000		$	47,520		$	686		$	(1,023)	$	(337)
	Sell EUR/Buy USD		42,544		1.0513		44,726			328			(1,355)		(1,027)
	Sell CAD/Buy USD		47,531		0.7534		35,812			707			(56)		651
	Buy CAD/Sell USD		30,497		0.7662		23,367			17			(815)		(798)
	Sell AUD/Buy USD		12,258		0.6836		8,379			153			(122)		31
	Sell MXN/Buy USD		63,776		0.0469		2,989			—			(242)		(242)
	Buy EUR/Sell USD		3,137		1.0592		3,323			56			(14)		42
							$	166,116		$	1,947		$	(3,627)	$	(1,680)


			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	144.6 million pounds			$	4,583		$	(1,745)	$	2,838

Swap & option contracts	Energy	2.9 million gallons			153			(187)		(34)
					$	4,736		$	(1,932)	$	2,804


			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	118.9 million pounds			$	5,105		$	—	$	5,105

Swap & option contracts	Energy	1.7 million gallons			253			(358)		(105)
					$	5,358		$	(358)	$	5,000


								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)
	$	50,000	April 30, 2024	Pay fixed rate / receive floating rate	1.44	%	SOFR		$	646		$	—
	25,000		April 30, 2025	Pay fixed rate / receive floating rate	1.06	%	SOFR		1,130			—
	50,000		April 30, 2025	Pay fixed rate / receive floating rate	0.70	%	SOFR		2,414			—
	25,000		June 30, 2026	Pay fixed rate / receive floating rate	1.52	%	SOFR		439			—
	25,000		June 30, 2026	Pay fixed rate / receive floating rate	1.17	%	SOFR		1,593			—
	25,000		June 30, 2026	Pay fixed rate / receive floating rate	3.20	%	SOFR		373			—
Unsecured Notes
	50,000		August 25, 2026	Pay fixed rate / receive floating rate	1.12	%	SOFR		3,589			—
									$	10,184		$	—


								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		$	435		$	—
	50,000		April 30, 2024	Pay fixed rate / receive floating rate	1.51	%	US LIBOR		2,124			—
	25,000		April 30, 2025	Pay fixed rate / receive floating rate	1.06	%	US LIBOR		1,839			—
	50,000		April 30, 2025	Pay fixed rate / receive floating rate	0.78	%	US LIBOR		3,346			—
	25,000		June 30, 2026	Pay fixed rate / receive floating rate	1.59	%	US LIBOR		443			—
	25,000		June 30, 2026	Pay fixed rate / receive floating rate	1.23	%	US LIBOR		1,999			—
Unsecured Notes
	50,000		August 25, 2023	Pay fixed rate / receive floating rate	1.18	%	US LIBOR		1,394			—
	50,000		August 25, 2026	Pay fixed rate / receive floating rate	1.34	%	US LIBOR		4,880			—
									$	16,460		$	—


							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		$	—	$	—	$	(1,945)	$	1,945
	Forecast expenses		—		—		736		(736)

Commodity risk:
	Forecast purchases		—		—		4,733		(4,733)

Interest rate risk:
	Forecast interest payments		—		—		10,126		(10,126)
			$	—	$	—	$	13,650	$	(13,650)

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		$	—	$	—	$	(1,359)	$	1,359
	Forecast expenses		—		—		(750)		750

Commodity risk:
	Forecast purchases		—		—		(4,112)		4,112

Interest rate risk:
	Forecast interest payments		—		—		16,066		(16,066)
			$	—	$	—	$	9,845	$	(9,845)


	2023		2022

Interest expense on financial liabilities recorded at amortized cost (1)	$	53,360	$	25,619
Bank and other financial charges	22,314		10,524
Interest accretion on discounted lease obligations	3,429		3,097
Interest accretion on discounted provisions	414		47
Foreign exchange loss (gain)	153		(2,330)
	$	79,670	$	36,957


	2023		2022

Net gain (loss) on derivatives designated as cash flow hedges:
Foreign currency risk	$	(3,334)	$	10,965
Commodity price risk	15,758		46,056
Interest rate risk	2,682		18,628

Income taxes	33		(110)

Amounts reclassified from OCI to inventory, related to commodity price risk	(6,913)		(114,989)

Amounts reclassified from OCI to net earnings, related to foreign currency risk, commodity risk, and interest rate risk, and included in:
Net sales	1,802		(11,904)
Cost of sales	58		22
Selling, general and administrative expenses	1,198		316
Financial expenses, net	(7,437)		(4,100)
Income taxes	(42)		152
Other comprehensive income (loss)	$	3,805	$	(54,964)

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 December 31, 2023 and January 1, 2023. 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 December 31, 2023 and January 1, 2023.