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DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended
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Jun. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | (8) DERIVATIVE FINANCIAL INSTRUMENTS The Company manages interest rate risk, commodity price risk, and foreign currency risk related to foreign currency denominated transactions and investments in foreign subsidiaries. Depending on the circumstances, the Company may manage these risks by utilizing derivative financial instruments. Some derivative financial instruments are marked to market and recorded in the Company’s Condensed Consolidated Statements of Earnings, while others may be accounted for as fair value, cash flow, or net investment hedges. Derivative financial instruments have credit and market risk. The Company manages these risks of derivative instruments by monitoring limits as to the types and degree of risk that can be taken and by entering into transactions with counterparties who are recognized, stable multinational banks. Any gains or losses from net investment hedge activities remain in AOCI until the sale or substantially complete liquidation of the related subsidiaries. The fair value of derivative instruments as of June 29, 2024 and December 30, 2023 was as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Condensed Consolidated | ​ | June 29, | ​ | December 30,
Derivatives designated as hedging instruments: |  | Balance Sheets location | ​ | 2024 | ​ | 2023
Commodity contracts | ​ | Prepaid expenses and other current assets | ​ | $ | 526 | ​ | $ | 2,520
Commodity contracts | ​ | Other accrued expenses | ​ | ​ | (2,580) | ​ | ​ | (1,586)
Cross currency swap contracts |  | Prepaid expenses and other current assets | ​ | ​ | 441 |  | ​ | 1,938
Cross currency swap contracts |  | Other accrued expenses | ​ | ​ | — |  | ​ | (12)
​ | ​ | ​ | ​ | $ | (1,613) | ​ | $ | 2,860
​ Gains (losses) on derivatives recognized in the Condensed Consolidated Statements of Earnings for the thirteen and twenty-six weeks ended June 29, 2024 and July 1, 2023 were as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Condensed Consolidated | ​ | Thirteen weeks ended | ​ | Twenty-six weeks ended
​ | ​ | Statements of Earnings | ​ | June 29, | ​ | July 1, | ​ | June 29, | ​ | July 1,
Derivatives designated as hedging instruments: | ​ | location | ​ | 2024 |  | 2023 |  | 2024 |  | 2023
Commodity contracts | ​ | Product cost of sales | ​ | $ | (397) | ​ | $ | (1,078) | ​ | $ | 559 | ​ | $ | (5,063)
Foreign currency forward contracts | ​ | Other income (expenses) | ​ | ​ | — |  | ​ | 80 | ​ | ​ | — |  | ​ | 177
Interest rate hedge amortization | ​ | Interest expense | ​ | ​ | (16) |  | ​ | (16) | ​ | ​ | (32) |  | ​ | (32)
Cross currency swap contracts | ​ | Interest expense | ​ | ​ | 306 |  | ​ | 449 | ​ | ​ | 686 |  | ​ | 895
​ | ​ | ​ | ​ | $ | (107) | ​ | $ | (565) | ​ | $ | 1,213 | ​ | $ | (4,023)
​ Cash Flow Hedges The Company enters into commodity forward, swap, and option contracts that qualify as cash flow hedges of the variability in cash flows attributable to future purchases. The gain (loss) realized upon settlement for each will be recorded in “Product cost of sales” in the Condensed Consolidated Statements of Earnings in the period consumed. Notional amounts, purchase quantities, and maturity dates of these contracts as of June 29, 2024 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Notional | ​ | Total | ​ | ​
Commodity Type | ​ | Amount | ​ | Purchase Quantity | ​ | Maturity Dates
Hot-rolled coil steel | ​ | $ | 22,178 | ​ | 26,500 short tons |  | June 2024 to December 2024
Natural gas | ​ | ​ | 2,747 | ​ | 639,825 MMBtu | ​ | June 2024 to March 2026
Diesel fuel | ​ | ​ | 689 | ​ | 2,898,000 gallons | ​ | June 2024 to December 2025
​ Net Investment Hedges In order to mitigate foreign currency risk on the Company’s Euro investments and to reduce interest expense, the Company enters into fixed-for-fixed cross currency swaps (“CCS”), swapping U.S. dollar principal and interest payments on a portion of its 5.00% senior unsecured notes due in 2044 for foreign-currency‑denominated payments. Interest is exchanged twice per year on April 1 and October 1. The Company designated the initial full notional amounts as hedges of the net investment in certain European subsidiaries under the spot method, with all changes in the fair value of the CCS that are included in the assessment of effectiveness (changes due to spot foreign exchange rates) recorded as cumulative foreign currency translation within AOCI. Net interest receipts will be recorded as a reduction of interest expense over the life of the CCS. Key terms of the CCS net investment hedges as of June 29, 2024 were as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Notional | ​ | ​ | ​ | Swapped | ​ | Set Settlement
Currency | ​ | Amount | ​ | Termination Date | ​ | Interest Rate | ​ | Amount
Euro | ​ | $ | 80,000 | ​ | April 1, 2029 |  | 3.461% | ​ | € | 74,509
​ In the first quarter of fiscal 2024, a Euro net investment hedge entered into in fiscal 2019 was early settled and the Company received proceeds of $2,711, which will remain in AOCI until either the sale or substantially complete liquidation of the related subsidiaries.

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