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FINANCIAL INSTRUMENTS | 12 Months Ended
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Dec. 29, 2024
Financial Instruments [Abstract] |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS: (a)Financial instruments - carrying amounts and fair values: The carrying amounts and fair values of financial assets and liabilities included in the consolidated statements of financial position are as follows:
| December 29, 2024 |  | December 31, 2023
Financial assets |  |  |
Amortized cost: |  |  |
Cash and cash equivalents | $ | 98,799 |  |  | $ | 89,642 |
Trade accounts receivable | 542,359 |  |  | 412,498 |
Financial assets included in prepaid expenses, deposits and other current assets | 56,785 |  |  | 45,136 |
Long-term non-trade receivables included in other non-current assets | 22,321 |  |  | 12,863 |
Fair value through other comprehensive income: |  |  |
Derivative financial assets included in prepaid expenses, deposits and other current assets | 12,108 |  |  | 15,797 |
Financial liabilities |  |  |
Amortized cost: |  |  |
Accounts payable and accrued liabilities(1) | $ | 478,317 |  |  | $ | 403,534 |
Long-term debt - bearing interest at variable rates | 950,000 |  |  | 885,000 |
Long-term debt - bearing interest at fixed rates(2) | 585,870 |  |  | 100,000 |
Fair value through other comprehensive income: |  |  |
Derivative financial liabilities included in accounts payable and accrued liabilities | 11,756 |  |  | 4,760 |
Derivative financial liabilities included in other non-current liabilities | 8,602 |  |  | — |
1) Accounts payable and accrued liabilities include $11.6 million (December 31, 2023 - $12.5 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 $37.8 million (December 31, 2023 - $49.0 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 6 to these consolidated financial statements. 2) The fair value of the long-term debt bearing interest at fixed rates was $627.3 million as at December 29, 2024 (December 31, 2023 - $98.6 million). 14. FINANCIAL INSTRUMENTS (continued): (a)Financial instruments - carrying amounts and fair values (continued): Short-term financial assets and liabilities 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. Non-current assets and long-term debt bearing interest at variable rates 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. Long-term debt bearing interest at fixed 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. Derivatives 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. On November 22, 2024, the Company entered into derivative transactions to hedge its exposure to foreign currency exchange risk related to its senior notes liability and interest expense denominated in Canadian dollars. This cross-currency swap has been designated at inception and is accounted for as a cash flow hedge, and to the extent that the hedge is effective, unrealized gains and losses are included in other comprehensive income until reclassified to the statement of income as the hedged interest payments and principal repayments impact net income. 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. 14. FINANCIAL INSTRUMENTS (continued): (b)Derivative financial instruments - hedge accounting: During fiscal 2024 and 2023, 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, as well contractual future principal and interest payments on fixed rate foreign currency debt, 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 29, 2024 and December 31, 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, as well as cross-currency debt and interest rate swap contracts to reduce the exposure to fluctuations in Canadian dollars 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 29, 2024 and December 31, 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 29, 2024 and December 31, 2023 served to fix the variable interest rates on the designated interest payments of a portion of the Company's long-term debt. The fair value of interest rate swaps and cross-currency swaps is calculated as the present value of estimated future cash flows over the remaining term of the contracts and based on market data (primarily yield curves, interest rates, and exchange rates for cross-currency swaps). The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at December 29, 2024:
|  |  |  |  |  |  | Carrying and fair value | Maturity
|  | Notional |  |  |  |  |  |  |  |
|  | foreign currency |  | Average |  | Notional | Prepaid expenses, | Accounts |  |
|  |  | 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 |  | 23,665 |  |  | 1.2827 |  |  | $ | 30,355 |  |  | $ | 705 |  |  | $ | — |  |  | $ | 705 |
| Sell EUR/Buy USD |  | 38,477 |  |  | 1.0914 |  |  | 41,995 |  |  | 1,532 |  |  | — |  |  | 1,532 |
| Sell CAD/Buy USD |  | 34,139 |  |  | 0.7401 |  |  | 25,266 |  |  | 1,403 |  |  | — |  |  | 1,403 |
| Buy CAD/Sell USD |  | 77,510 |  |  | 0.7252 |  |  | 56,214 |  |  | — |  |  | (1,781) |  |  | (1,781) |
| Sell AUD/Buy USD |  | 7,586 |  |  | 0.6620 |  |  | 5,022 |  |  | 292 |  |  | — |  |  | 292 |
| Sell MXN/Buy USD |  | 172,198 |  |  | 0.0511 |  |  | 8,793 |  |  | 451 |  |  | (3) |  |  | 448 |
|  |  |  |  |  |  | $ | 167,645 |  |  | $ | 4,383 |  |  | $ | (1,784) |  |  | $ | 2,599 |
14. FINANCIAL INSTRUMENTS (continued): (b)Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company’s commitments to buy and sell foreign currencies (cash flow hedges) as at December 31, 2023:
|  |  |  |  |  |  | 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) |
The following table summarizes the Company’s cross-currency fixed rate debt swap commitments to sell foreign currencies (cash flow hedges) as at December 29, 2024:
|  |  |  |  |  |  |  |  | Carrying and fair value |  | Maturity
|  | Notional foreign |  | Fixed |  | Notional |  |  |  | Other non- |  | Other non- |  |
|  | currency amount |  | exchange |  | U.S. $ | Pay | Receive |  | current |  | current |  | Over 12
| equivalent |  | rate | equivalent | rate | Rate |  | assets | liabilities |  | months
Forward foreign exchange contracts: |  |  |  |  |  |  |  |
| Sell CAD/Buy USD |  | 500,000 |  |  | 1.4000 |  |  | 357,143 |  | 5.49 | % | 4.36 | % |  | — |  |  | (6,442) |  |  | November 2029
| Sell CAD/Buy USD |  | 200,000 |  |  | 1.4000 |  |  | 142,857 |  | 5.77 | % | 4.71 | % |  | — |  |  | (2,160) |  |  | November 2031
|  |  |  |  |  |  | $ | 500,000 |  |  |  |  |  |  | $ | (8,602) |  |  |
The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at December 29, 2024:
|  |  |  | 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 | 382.2 million pounds |  |  | $ | 1,584 |  |  | $ | (9,519) |  |  | $ | (7,935) |
Swap & option contracts | Energy | 3.4 million gallons |  |  | 25 |  |  | (453) |  |  | (428) |
|  |  |  |  |  | $ | 1,609 |  |  | $ | (9,972) |  |  | $ | (8,363) |
(1) Notional amounts are not in thousands. 14. FINANCIAL INSTRUMENTS (continued): (b)Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company's commodity contracts outstanding (cash flow hedges) as at December 31, 2023:
|  |  |  | 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 |
(1) Notional amounts are not in thousands. The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at December 29, 2024:
|  |  |  |  |  | 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) |  |  |  |  |  |  |  |
| $ | 25,000 |  | April 30, 2025 | Pay fixed rate / receive floating rate | 1.06 | % | SOFR |  | $ | 355 |  |  | $ | — |
| 50,000 |  | April 30, 2025 | Pay fixed rate / receive floating rate | 0.70 | % | SOFR |  | 771 |  |  | — |
| 25,000 |  | June 30, 2026 | Pay fixed rate / receive floating rate | 1.52 | % | SOFR |  | 714 |  |  |
| 25,000 |  | June 30, 2026 | Pay fixed rate / receive floating rate | 1.17 | % | SOFR |  | 1,153 |  |  | — |
| 25,000 |  | June 30, 2026 | Pay fixed rate / receive floating rate | 3.20 | % | SOFR |  | 364 |  |  | — |
| 25,000 |  | June 30, 2026 | Pay fixed rate / receive floating rate | 3.69 | % | SOFR |  | 172 |  |  | — |
Unsecured Notes |  |  |  |  |  |  |  |
| 50,000 |  | August 25, 2026 | Pay fixed rate / receive floating rate | 1.12 | % | SOFR |  | 2,587 |  |  | — |
|  |  |  |  |  |  | $ | 6,116 |  |  | $ | — |
(1) The notional amounts for the interest rate swap contracts maturing in 2026 are extensions to the $100 million interest rate swap contracts originally entered into for the $300 million term loan. 14. FINANCIAL INSTRUMENTS (continued): (b)Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company’s floating-to-fixed interest rate swap contracts outstanding (cash flow hedges) as at December 31, 2023:
|  |  |  |  |  | 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 |  |  | $ | — |
(1) The notional amounts for the interest rate swap contracts maturing in 2025 and 2026 were extensions to the $125 million interest rate swap contracts originally entered into for the $300 million term loan. The following table summarizes the Company’s hedged items as at December 29, 2024:
|  |  |  |  |  | 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 |  | $ | — |  |  | $ | — |  |  | $ | 3,048 |  |  | $ | (3,048) |
| Forecast expenses |  | — |  |  | — |  |  | (1,781) |  |  | 1,781 |
| Debt & interest payments |  | — |  |  | 487,677 |  |  | 6,041 |  |  | (6,041) |
Commodity risk: |  |  |  |  |  |  |  |
| Forecast purchases |  | — |  |  | — |  |  | (12,592) |  |  | 12,592 |
Interest rate risk: |  |  |  |  |  |  |  |
| Forecast interest payments |  | — |  |  | — |  |  | 5,257 |  |  | (5,257) |
|  |  | $ | — |  |  | $ | 487,677 |  |  | $ | (27) |  |  | $ | 27 |
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. 14. FINANCIAL INSTRUMENTS (continued): (b)Derivative financial instruments - hedge accounting (continued): The following table summarizes the Company’s hedged items as at December 31, 2023:
|  |  |  |  |  | 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. (c) Financial expenses, net:
| 2024 |  | 2023
Interest expense on financial liabilities recorded at amortized cost (1) | $ | 80,256 |  |  | $ | 53,360 |
Bank and other financial charges | 22,212 |  |  | 22,314 |
Interest accretion on discounted lease obligations | 4,764 |  |  | 3,429 |
Interest accretion on discounted provisions | 431 |  |  | 414 |
Foreign exchange (gain) loss | (3,509) |  |  | 153 |
| $ | 104,154 |  |  | $ | 79,670 |
(1) Net of capitalized borrowing costs of nil (2023 - $6.8 million) using an average capitalization rate of nil (2023 - 5.39%). 14. FINANCIAL INSTRUMENTS (continued): (d) Hedging components of other comprehensive (loss) income (“OCI”):
| 2024 |  | 2023
Net gain (loss) on derivatives designated as cash flow hedges: |  |  |
Foreign currency risk | $ | (4,806) |  |  | $ | (3,334) |
Commodity price risk | (14,525) |  |  | 15,758 |
Interest rate risk | 3,246 |  |  | 2,682 |
Income taxes | (38) |  |  | 33 |
Amounts reclassified from OCI to inventory, related to commodity price risk | (2,800) |  |  | (6,913) |
Amounts reclassified from OCI to net earnings, related to foreign currency risk, commodity risk, and interest rate risk, and included in: |  |  |
Net sales | (809) |  |  | 1,802 |
Cost of sales | — |  |  | 58 |
Selling, general and administrative expenses | 211 |  |  | 1,198 |
Financial expenses, net | 5,899 |  |  | (7,437) |
Income taxes | (55) |  |  | (42) |
Other comprehensive (loss) income | $ | (13,677) |  |  | $ | 3,805 |
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 29, 2024 and December 31, 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 29, 2024 and December 31, 2023. Approximately $13.3 million of net losses presented in accumulated other comprehensive income as at December 29, 2024 are expected to be reclassified to inventory or net earnings within the next twelve months.

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