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Debt and Finance Lease Obligations | 12 Months Ended
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Dec. 28, 2024
Debt Disclosure [Abstract] |
Debt and Finance Lease Obligations | Debt and Finance Lease Obligations As of December 28, 2024, and December 30, 2023, outstanding debt and finance leases consisted of the following:
| As of
| December 28, 2024 |  | December 30, 2023
(In thousands)
Senior secured notes (1) | $ | 300,000 |  |  | $ | 300,000 |
Revolving credit facility (2) | — |  |  | — |
Unamortized debt issuance costs (1)(4) | (2,437) |  |  | (3,246) |
Unamortized bond discount costs (1)(4) | (2,502) |  |  | (3,011) |
| 295,061 |  |  | 293,743 |
Finance lease obligations (3) | 292,543 |  |  | 285,426 |
Less: current portions of finance leases | 12,541 |  |  | 11,178 |
Total debt and finance leases, net of current portions | $ | 575,063 |  |  | $ | 567,991 |
(1) As of December 28, 2024 and December 30, 2023, long-term debt was comprised of $300.0 million of senior secured notes issued in October 2021. These notes are presented under the Long-term debt caption of the Company’s consolidated balance sheets at $295.1 million and $293.7 million as of December 28, 2024 and December 30, 2023, respectively. This presentation is net of discount of $2.5 million and $3.0 million and the combined carrying value of debt issuance costs of $2.4 million and $3.2 million as of December 28, 2024 and December 30, 2023, respectively. The senior secured notes are presented in the above table at face value and have an annual interest rate of 6.0% through maturity. (2) No borrowings were outstanding during fiscal 2024 or fiscal 2023. Available borrowing capacity under this revolving credit facility was $346.2 million and $346.5 million on December 28, 2024 and December 30, 2023, respectively. Available borrowing capacity is net of undrawn letters of credit commitments. (3) Refer to Note 13, Lease Commitments, for interest rates associated with finance lease obligations. (4) Interest expense, net on the Company’s consolidated statement of operations for fiscal 2024, fiscal 2023, and fiscal 2022 reflects amortization of debt issuance costs and discount costs of $1.3 million, $1.3 million, and $1.2 million, respectively. Interest expense, net on the Company’s consolidated statements of operations consisted of the following components:
|  | Fiscal Year Ended
|  | December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
|  | (in thousands)
Interest expense (1) |  | $ | 47,169 |  |  | $ | 44,654 |  |  | $ | 45,500 |
Less: interest income |  | 27,805 |  |  | 20,908 |  |  | 3,228 |
Interest expense, net |  | $ | 19,364 |  |  | $ | 23,746 |  |  | $ | 42,272 |
(1) Includes amortization of debt issuance costs and bond discount Senior Secured Notes In October 2021, the Company and certain subsidiaries completed a private offering of $300.0 million of 6.0% percent senior secured notes due November 2029 (the “2029 Notes”), and in connection therewith entered into an indenture (the “Indenture”) with the subsidiary guarantors and Truist Bank, as trustee and collateral agent. The 2029 Notes were issued to investors at 98.625 percent of their principal amount. The 2029 Notes are secured by a first-priority security interest in substantially all of the Company’s assets, other than accounts receivables, inventory, deposit accounts, securities accounts, business interruption insurance and other related assets. The majority of net proceeds from the offering of the 2029 Notes were used to repay borrowings under the Company’s Revolving Credit Facility, as described below. The 2029 Notes will mature on November 15, 2029, however at the sole discretion of the Company, the notes may be redeemed, in whole or in part, prior to scheduled maturity. Early redemptions made by the Company prior to November 15, 2026 would require the Company to pay a redemption premium, as defined in the Indenture. Interest expense for the 2029 Notes totaled $18.0 million for fiscal 2024, fiscal 2023, and fiscal 2022. Revolving Credit Facility In April 2018, the Company and certain subsidiaries entered into the Amended and Restated Credit Agreement for a revolving credit facility with Wells Fargo Bank, National Association, as administrative agent (“the Agent”), and certain other financial institutions. In August 2021, the Company entered into a second amendment to this revolving credit facility to, among other things, extend the maturity date of the facility to August 2, 2026, and reduce the interest rate on borrowings under the facility, and in June 2023, the Company entered into a third amendment to this revolving credit facility to, among other things, replace the interest rate based on the London interbank offered rate (“LIBOR”) thereunder with an interest rate based on the secured overnight financing rate (“SOFR”) and a customary spread adjustment (as amended, the “Revolving Credit Facility”). In October 2021, in conjunction with the offering of the 2029 Notes, the Company reduced the credit limit of the Revolving Credit Facility from $600.0 million to $350.0 million. The Revolving Credit Facility provides for a senior secured asset-based revolving loan and letter of credit facility of up to $350.0 million, as amended. The obligations under the Revolving Credit Facility are secured by a security interest in substantially all of the Company’s and its subsidiaries’ assets (other than real property), including inventories, accounts receivable, and proceeds from those items, under the Amended and Restated Guaranty and Security Agreement. From and after June 30, 2023, borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to (i) Adjusted Term SOFR (calculated as SOFR plus 0.1%) plus a margin ranging from 1.25 percent to 1.75 percent, with the margin determined based upon average excess availability for the immediately preceding fiscal quarter for loans based on SOFR, or (ii) the Agent’s base rate plus a margin ranging from 0.25 percent to 0.75 percent, with the margin based upon average excess availability for the immediately preceding fiscal quarter for loans based on the base rate. Prior to June 30, 2023, borrowings under the Revolving Credit Facility bore interest at a rate per annum equal to (i) LIBOR plus a margin ranging from 1.25 percent to 1.75 percent, with the margin determined based upon average excess availability for the immediately preceding fiscal quarter for loans based on LIBOR, or (ii) the Agent’s base rate plus a margin ranging from 0.25 percent to 0.75 percent, with the margin based upon average excess availability for the immediately preceding fiscal quarter for loans based on the base rate. Borrowings under the Revolving Credit Facility are subject to availability under the borrowing base (as that term is defined in the revolving credit agreement). The Company would be required to repay the Revolving Credit Facility to the extent that such revolving borrowings exceed the borrowing base then in effect. The Revolving Credit Facility may be prepaid in whole or in part from time to time without penalty or premium but including all breakage costs incurred by any lender thereunder. As of December 28, 2024, we had zero outstanding borrowings and excess availability, including cash in qualified accounts, of $851.8 million under our Revolving Credit Facility. As of December 30, 2023, we had zero outstanding borrowings and excess availability, including cash in qualified accounts, of $868.2 million under our Revolving Credit Facility. Available borrowing capacity under our Revolving Credit Facility was $346.2 million and $346.5 million on December 28, 2024 and December 30, 2023, respectively. During fiscal 2024, fiscal 2023, and fiscal 2022, the Company incurred no interest expense for the Revolving Credit Facility since no borrowings were outstanding during those fiscal years. During fiscal 2024, fiscal 2023, and fiscal 2022, the Company incurred $1.0 million, $1.0 million, and $1.0 million respectively, of fees associated with the Revolving Credit Facility, primarily unused line fees. These expenses are included in Interest expense, net on the Company‘s consolidated statement of operations. Debt Covenants The Revolving Credit Facility and the 2029 Notes contain various covenants and restrictions, including customary financial covenants. The Company’s right to make draws on the Revolving Credit Facility may be conditioned upon, among other things, compliance with these covenants. The Company was in compliance with all covenants as of December 28, 2024. These covenants also limit the Company’s ability to, among other things incur additional debt, grant liens on assets, make investments, repurchase stock, pay dividends and make distributions, sell or acquire assets, including certain real estate assets, outside the ordinary course of business, engage in transactions with affiliates, and make fundamental business changes. Finance Lease Obligations The Company’s finance lease liabilities consist of leases related to equipment and vehicles, and real estate, with the majority of those finance leases related to real estate. For more information on our finance lease obligations, refer to Note 13, Lease Commitments.

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