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DERIVATIVE INSTRUMENTS | 6 Months Ended
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Jul. 03, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS During the periods covered by this report, the Company has made no changes to its policies or strategies for the use of derivative instruments and there has been no change in related accounting methods. For the Company's derivative instruments, which are designated as cash flow hedges, gains and losses are initially reported as a component of accumulated other comprehensive loss and subsequently recognized in earnings with the corresponding hedged item. Interest Rate Derivative Instruments As of July 3, 2026, the Company held $350.0 million of interest rate swap contracts to mitigate risks to earnings and cash flows relating to fluctuations in interest rates. During the three months ended July 3, 2026, the Company elected not to renew certain interest rate swap contracts, which resulted in a decrease in interest rate swap contracts of $100.0 million from the quarter ended April 3, 2026. As of July 3, 2026 and December 31, 2025, these contracts had notional values of $321.9 million and $428.1 million, respectively. These contracts are designated and qualify as effective cash flow hedges. The following table summarizes the amount at fair value and location of the derivative instruments for interest rate hedges in the Condensed Consolidated Balance Sheets:
|  | Fair Value (level 2) |  |
|  |  |  | As of |  |  |  |
|  |  |  | July 3, |  | December 31, |  |  |  |
(In thousands) |  | Balance sheet caption |  | 2026 |  | 2025 |  |  |  |
Interest rate swap designated as cash flow hedge |  | Prepaid expenses and other current assets |  | $ | 894 |  |  | $ | — |  |  |  |  |
Interest rate swap designated as cash flow hedge |  | Other non-current assets |  | $ | 571 |  |  | $ | — |  |  |  |  |
Interest rate swap designated as cash flow hedge |  | Other accrued liabilities |  | $ | — |  |  | $ | 770 |  |  |  |  |
Interest rate swap designated as cash flow hedge |  | Other non-current liabilities |  | $ | — |  |  | $ | 1,380 |  |  |  |  |
Interest rate swap designated as cash flow hedge |  | Accumulated other comprehensive loss |  | $ | 1,465 |  |  | $ | (2,150) |  |  |  |  |
The Company regularly assesses the creditworthiness of the counterparty. As of July 3, 2026, the counterparty to the interest rate swaps had performed in accordance with its contractual obligations. Both the counterparty credit risk and the Company's credit risk were considered in the fair value determination. Net interest rate derivative expenses of $2.9 million were recognized in interest expense, net, in the Condensed Consolidated Statements of Income for both the three and six months ended July 3, 2026. Net interest rate derivative gains of $0.8 million and $1.5 million were recognized in interest expense, net, in the Condensed Consolidated Statements of Income for the three and six months ended June 27, 2025, respectively. The Company expects $0.9 million of existing interest rate swap gains reported in accumulated other comprehensive loss as of July 3, 2026 to be recognized in earnings within the next 12 months.

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- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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