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Derivatives and Hedging | 3 Months Ended
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Mar. 29, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging | FASB ASC 815, Derivatives and Hedging ("ASC 815"), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company's objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments. The Company uses derivative financial instruments to manage its exposures to (1) interest rate fluctuations on its floating rate senior term loan and (2) fluctuations in foreign currency exchange rates. The Company measures those instruments at fair value and recognizes changes in the fair value of derivatives in earnings in the period of change, unless the derivative qualifies as an effective hedge that offsets certain exposures. The Company does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes. Interest Rate Swap Agreements On December 19, 2023, the Company entered into an interest swap agreement ("2024 Swap 1") for a notional amount of $144,000. The forward start date of the 2024 Swap 1 was July 21, 2024 and the termination date is January 31, 2027. The 2024 Swap 1 has a determined pay fixed interest rate of 3.8%. In accordance with ASC 815, the Company determined the 2024 Swap 1 constituted an effective cash flow hedge and therefore changes in fair value are recorded within other comprehensive loss within the Company's Statement of Comprehensive Loss and the deferred gains or losses are reclassified out of other comprehensive loss into interest expense in the same period during which the hedged transactions affect earnings. On December 19, 2023, the Company entered into an interest swap agreement ("2024 Swap 2") for a notional amount of $216,000. The forward start date of the 2024 Swap 2 was July 21, 2024 and the termination date is January 31, 2027. The 2024 Swap 2 has a determined pay fixed interest rate of 3.62%. In accordance with ASC 815, the Company determined the 2024 Swap 2 constituted an effective cash flow hedge and therefore changes in fair value are recorded within other comprehensive loss within the Company's Statement of Comprehensive Loss and the deferred gains or losses are reclassified out of other comprehensive loss into interest expense in the same period during which the hedged transactions affect earnings. The following table summarizes the Company's derivative financial instruments:
|  | Asset Derivatives |  | Liability Derivatives
|  |  |  | As of March 29, 2025 |  | As of December 28, 2024 |  |  |  | As of March 29, 2025 |  | As of December 28, 2024
|  | Balance Sheet Location |  | Fair Value |  | Fair Value |  | Balance Sheet Location |  | Fair Value |  | Fair Value
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |
2024 Swap 1 |  | Other current/other non-current assets |  | 196 |  |  | 787 |  |  | Other non-current liabilities |  | (434) |  |  | — |
2024 Swap 2 |  | Other current/other non-current assets |  | 645 |  |  | 1,961 |  |  | Other non-current liabilities |  | (312) |  |  | — |
Total hedging instruments: |  | $ | 841 |  |  | $ | 2,748 |  |  |  |  | $ | (746) |  |  | $ | — |
Foreign Currency Forward Contracts As of March 29, 2025 and December 28, 2024 the Company entered into foreign currency forward contracts. The purpose of the Company's foreign currency forward contracts is to manage the Company's exposure to fluctuations in the exchange rate of the Canadian dollar. The total notional amount of contracts outstanding was C$3,361 and C$4,087 as of March 29, 2025 and December 28, 2024, respectively. The total fair value of the foreign currency forward contracts was $2,350 and $4,325 as of March 29, 2025 and December 28, 2024, respectively and was reported on the accompanying Condensed Consolidated Balance Sheets in other accrued expenses. An increase in other income of $160 was recorded in the Condensed Consolidated Statements of Comprehensive Loss for the change in fair value during the thirteen weeks ended March 29, 2025. The Company's foreign currency forward contracts did not qualify for hedge accounting treatment because they did not meet the provisions specified in ASC 815. Accordingly, the gain or loss on these derivatives was recognized in other (income) expense in the Condensed Consolidated Statements of Comprehensive Loss. The Company does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes. Additional information with respect to the fair value of derivative instruments is included in Note 15 - Fair Value Measurements.

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