DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 28, 2024

DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

(15) DERIVATIVE FINANCIAL INSTRUMENTS

The Company manages risks related to interest rates, commodity prices, and foreign currency, particularly those arising from foreign currency denominated transactions and investments in foreign subsidiaries. To address these risks, the Company may use derivative financial instruments. Depending on their classification, some derivatives are marked to market and recorded in the Company’s Consolidated Statements of Earnings, while others are accounted for as fair value, cash flow, or net investment hedges.

Derivative financial instruments inherently carry credit and market risks, which the Company mitigates by monitoring exposure limits and transacting with recognized, stable multinational banks as counterparties. Gains or losses from net investment hedge activities remain in AOCI until the related subsidiaries are sold or substantially liquidated.

The fair value of derivative instruments as of December 28, 2024 and December 30, 2023 was as follows:

	Consolidated	December 28,		December 30,
Derivatives designated as hedging instruments:	Balance Sheets location	2024		2023
Commodity contracts	Prepaid expenses and other current assets	$	617	$	2,520
Commodity contracts	Other accrued expenses		(371)		(1,586)
Cross-currency swap contracts	Prepaid expenses and other current assets		1,074		1,938
Cross-currency swap contracts	Other accrued expenses		—		(12)
		$	1,320	$	2,860

Gains (losses) on derivatives recognized in the Consolidated Statements of Earnings for the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022 were as follows:

	Consolidated	Fiscal Year Ended
Derivatives designated	Statements of Earnings	December 30,		December 30,		December 31,
as hedging instruments:	location	2024		2023		2022
Commodity contracts	Product cost of sales	$	(3,007)	$	(7,057)	$	(5,212)
Foreign currency forward contracts	Other income (expenses)		—		177		(45)
Interest rate hedge amortization	Interest expense		(64)		(64)		(64)
Cross-currency swap contracts	Other income (expenses)		—		—		4,827
Cross-currency swap contracts	Interest expense		1,246		1,813		2,875
		$	(1,825)	$	(5,131)	$	2,381

Cash Flow Hedges

The Company enters into commodity forward, swap, and option contracts to hedge variability in cash flows related to future purchases. Gains (losses) realized upon settlement are recorded in “Product cost of sales” in the Consolidated Statements of Earnings for the period in which the hedged items are consumed. As of December 28, 2024, the details of these contracts were as follows:

	Notional		Total
Commodity Type	Amount		Purchase Quantity	Maturity Dates
Hot-rolled coil steel	$	13,459	17,000 short tons	January 2025 to September 2025
Natural gas		1,384	352,000 MMBtu	January 2025 to March 2026
Ultra-low-sulfur diesel fuel		623	2,604,000 gallons	December 2024 to June 2026

Net Investment Hedges

To manage foreign currency risk associated with its euro investments and reduce interest expenses, the Company uses fixed-for-fixed cross-currency swaps (“CCS”). These swaps convert U.S. dollar principal and interest payments from a portion of its 5.00% senior unsecured notes due in fiscal 2044 into foreign-currency-denominated payments. Interest payments are exchanged biannually on April 1 and October 1.

Under the spot method, the Company designated the full notional amounts of CCS as hedges for the net investment in certain European subsidiaries. Changes in fair value of the CCS attributable to spot exchange rates are recorded as cumulative foreign currency translation within AOCI, while net interest receipts reduce interest expense over the life of the CCS. Key terms as of December 28, 2024 were as follows:

	Notional			Swapped	Settlement
Currency	Amount		Termination Date	Interest Rate	Amount
Euro	$	80,000	April 1, 2029	3.461%	€	74,509

In the first quarter of fiscal 2024, the Company early settled a euro net investment hedge entered in fiscal 2019, receiving proceeds of $2,711. These proceeds will remain in AOCI until the related subsidiaries are sold or substantially liquidated.

In the third and fourth quarters of fiscal 2022, the Company settled a Danish krone net investment hedge, receiving proceeds of $3,532. Following the sale of the Company’s offshore wind energy structures business in the fourth quarter of fiscal 2022, a cumulative net investment hedge gain of $4,827 ($3,620 after tax) was reclassified from AOCI to “Other income (expenses)” in the Consolidated Statements of Earnings.