XML 36 R24.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Derivative Instruments and Hedging Activities | 6 Months Ended
--- | ---
Jun. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | 17. Derivative Instruments and Hedging Activities Derivative Instruments - Cash Flow Hedges The Company’s cash flow hedges are designed to mitigate the risk of exposure to variability in expected future cash flows of recognized assets, liabilities or any unrecognized forecasted transactions. Since July 2022, the Company has entered into various interest rate swaps that are designated as cash flow hedges on a substantial portion of the Company’s outstanding debt. The interest rate swaps reduce the variability of cash flow payments for the Company by converting the variable interest rate on the Company’s long-term debt to an average fixed interest rate of 3.26%. These contracts, carried at fair value, have maturities of approximately three years. All hedging relationships were highly effective at achieving offsetting changes in cash flows attributable to the risk being hedged. The Company used a regression analysis at hedge inception to assess the effectiveness of cash flow hedge and periodically thereafter. The Company records gains and losses from the changes in the fair value of these instruments as a component of other comprehensive (loss) income. Deferred gains or losses from these designated cash flow hedges are reclassified into earnings in the period that the hedged items affect earnings. The Company does not offset fair value amounts recognized for derivative instruments in its condensed consolidated balance sheets for presentation purposes. The following table summarizes the fair value of the hedging instruments, presented on a gross basis, as of June 29, 2024 and December 30, 2023.
|  |  |  | Condensed Consolidated Balance Sheets
(in millions) |  | Balance sheet classification |  | June 29, 2024 |  | December 30, 2023 |  |
Interest rate contracts, inclusive of accrued interest |  | Other non-current assets |  | $ | 13.6 |  |  | $ | 11.6 |  |  |
Interest rate contracts, inclusive of accrued interest |  | Other non-current liabilities |  | — |  |  | (3.6) |  |  |
Total |  |  |  | $ | 13.6 |  |  | $ | 8.0 |  |  |
The following table summarizes the gains (losses) reclassified from accumulated other comprehensive (loss) income to the condensed consolidated financial statements for the three months and six months ended June 29, 2024 and July 1, 2023.
Cash flow hedges |  |  |  | Condensed Consolidated Statement of Operations
|  |  |  | Three Months Ended |  | Six Months Ended
(in millions) |  | Location of gains (losses) |  | June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
Interest rate contracts |  | Non-operating (loss) |  | $ | 4.1 |  |  | $ | 3.8 |  |  | $ | 8.3 |  |  | $ | 6.8 |
Total |  |  |  | $ | 4.1 |  |  | $ | 3.8 |  |  | $ | 8.3 |  |  | $ | 6.8 |
The following tables summarize the changes in accumulated other comprehensive income (loss) related to the hedging instruments for the three months and six months ended June 29, 2024 and July 1, 2023.
|  | Three Months Ended |  | Six Months Ended
(in millions) |  | June 29, 2024 |  | July 1, 2023 |  | June 29, 2024 |  | July 1, 2023
Beginning balance |  | $ | 14.3 |  |  | $ | 13.6 |  |  | $ | 7.8 |  |  | $ | 19.3 |
Amount recognized in other comprehensive (loss) |  | 3.3 |  |  | 11.3 |  |  | 14.0 |  |  | 8.6 |
Amount reclassified into earnings |  | (4.1) |  |  | (3.8) |  |  | (8.3) |  |  | (6.8) |
Ending balance |  | $ | 13.5 |  |  | $ | 21.1 |  |  | $ | 13.5 |  |  | $ | 21.1 |
For the three months ended June 29, 2024, the unrealized loss, net of tax was $0.6 million. For the three months ended July 1, 2023, the unrealized gain, net of tax was $5.6 million. For the six months ended June 29, 2024, the unrealized gain, net of tax was $4.3 million. For the six months ended July 1, 2023, the unrealized gain, net of tax was $1.3 million. The Company expects to reclassify a net amount of gains of $10.8 million from accumulated other comprehensive (loss) income to non-operating (loss) income within the next 12 months.

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