Interest Rate Derivatives |
12 Months Ended |
|---|---|
Dec. 30, 2023 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Interest Rate Derivatives | Interest Rate Derivatives We are party to an interest rate collar to offset the variability of cash flows in Term SOFR-indexed debt interest payments. During the second quarter of 2023, we amended the reference rate of the collar from LIBOR to Term SOFR. The aggregate notional amount of the interest rate collar, which is not designated as a cash flow hedge, was $325.0 million as of December 30, 2023. The fair value of our interest rate collar instrument was an asset of $5.6 million, which is recorded in Prepaid expenses and other current assets as of December 30, 2023. The fair value of our interest rate collar instrument was an asset of $14.1 million ($10.0 million in Prepaid expenses and other current assets and $4.1 million in Other assets) as of December 31, 2022. See Note 3. “Details of Certain Balance Sheet Accounts” and Note 10. “Fair Value Measurement” for further details. We recognized (gains) losses on the change in fair value of the interest rate collar of $(2.3) million, $(18.0) million, and $(4.2) million in , net during fiscal years 2023, 2022, and 2021, respectively. The interest rate collar will mature on July 18, 2024. Cash flows related to derivatives qualifying as hedges are included in the same section of the Consolidated Statements of Cash Flows as the underlying assets and liabilities being hedged. Cash flows during fiscal years 2023 and 2022 related to derivatives not qualifying as hedges were included in the operating section of the Consolidated Statements of Cash Flows and were immaterial. As of December 30, 2023, the Company expects to reclassify approximately $0.4 million of unrealized losses on derivative instruments, net of tax, from AOCL into earnings in the next 12 months as the derivative instruments mature. See Note 16. “Accumulated Other Comprehensive Loss” for further details.
|