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Derivatives
 12 Months Ended
Dec. 28, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives

Interest Rate Swap Agreements
In 2018, the Company entered into an interest rate swap agreement (2018 Swap Agreement) with Citizens which has a $15,000,000 notional value and expires on June 30, 2023. In 2015, the Company also entered into an interest rate swap agreement (2015 Swap Agreement) with Citizens which has a $10,000,000 notional value and expires on March 27, 2020. The swap agreements hedge the Company’s exposure to movements in the three-month LIBOR rate on U.S. dollar-denominated debt. On a quarterly basis, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 3.15% plus an applicable margin as defined in the Credit Agreement on the 2018 Swap Agreement and receives a three-month LIBOR rate and pays a fixed rate of interest of 1.50% plus an applicable margin as defined in the Credit Agreement on the 2015 Swap Agreement. The 2018 Swap Agreement is subject to a zero percent floor on the three-month LIBOR rate. The interest rate swap agreements are designated as cash flow hedges and the Company has structured its interest rate swap agreements to be 100% effective. Unrealized gains and losses related to the fair values of the swap agreements are recorded to AOCI, net of tax. In the event of early termination, the Company would receive from or pay to the counterparty the fair values of the interest rate swap agreements, and the unrealized gain or loss outstanding would be recognized in earnings.
The counterparty to the interest rate swap agreements could demand an early termination of those agreements if the Company were to be in default under the Credit Agreement, or any agreement that amends or replaces the Credit Agreement in which the counterparty is a member, and if the Company were to be unable to cure the default (see Note 6, Long-Term Obligations).
    
Forward Currency-Exchange Contracts
The Company uses forward currency-exchange contracts that typically have maturities of twelve months or less to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result from assets and liabilities that are denominated in currencies other than the functional currencies.
Forward currency-exchange contracts that hedge forecasted accounts receivable or accounts payable are designated as cash flow hedges and unrecognized gains and losses are recorded to AOCI, net of tax. Deferred gains and losses are recognized in the statement of income in the period in which the underlying transaction occurs. The fair values of forward currency-exchange contracts that are designated as fair value hedges and forward currency-exchange contracts that are not designated as hedges are recognized currently in earnings.
The Company recognized within SG&A expenses in the accompanying consolidated statement of income losses of $46,000 in 2019, $27,000 in 2018 and $1,367,000 in 2017, associated with forward currency-exchange contracts that were not designated as hedges.
The following table summarizes the fair value of the Company's derivative instruments in the accompanying consolidated balance sheet:
 
 
 
 
December 28, 2019
 
December 29, 2018
(In thousands)
 
Balance Sheet
Location
 
Asset
(Liability) (a)
 
Notional
Amount (b)
 
Asset
(Liability) (a)
 
Notional
Amount
Derivatives Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
Derivatives in an Asset Position:
 
 
 
 
 
 
 
 
 
 
2015 Swap Agreement
 
Other Current Assets
 
$
11

 
$
10,000

 
$
—

 
$
—

2015 Swap Agreement
 
Other Long-Term
Assets
 
$
—

 
$
—

 
$
148

 
$
10,000

Forward currency-exchange contracts
 
Other Long Term
Assets
 
$
—

 
$
—

 
$
11

 
$
842

Derivatives in a Liability Position:
 
 
 
 

 
 

 
 

 
 

Forward currency-exchange contracts
 
Other Current
Liabilities
 
$
(75
)
 
$
4,825

 
$
(50
)
 
$
2,946

2018 Swap Agreement
 
Other Long-Term
Liabilities
 
$
(770
)
 
$
15,000

 
$
(352
)
 
$
15,000

Derivatives Not Designated as Hedging Instruments:
 
 
 
 

 
 

 
 

 
 

Derivatives in an Asset Position:
 
 
 
 

 
 

 
 

 
 

Forward currency-exchange contracts
 
Other Current
Assets
 
$
3

 
$
387

 
$
9

 
$
1,192

Derivatives in a Liability Position:
 
 
 
 

 
 

 
 

 
 

Forward currency-exchange contracts
 
Other Current
Liabilities
 
$
(43
)
 
$
2,545

 
$
(31
)
 
$
1,384


(a)
See Note 11 for the fair value measurements relating to these financial instruments.
(b)
The total 2019 notional amounts are indicative of the level of the Company's recurring derivative activity.

The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the year ended December 28, 2019:
(In thousands)
 
Interest Rate Swap
Agreements
 
Forward Currency-
Exchange Contracts
 
Total
Unrealized Loss, Net of Tax, at December 29, 2018
 
$
(170
)
 
$
(27
)
 
$
(197
)
     Loss reclassified to earnings (a)
 
6

 
117

 
123

     Loss recognized in AOCI
 
(425
)
 
(145
)
 
(570
)
Unrealized Loss, Net of Tax, at December 28, 2019
 
$
(589
)
 
$
(55
)
 
$
(644
)

(a)
See Note 14 for the income statement classification.

At year-end 2019, the Company expects to reclassify losses of $209,000 from AOCI to earnings over the next twelve months based on the estimated cash flows of the interest rate swap agreements and the maturity dates of the forward currency- exchange contracts.