Derivative Financial Instruments (Tables)

9 Months Ended

Oct. 08, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Net Fair Value of Commodity Price Risk

As of October 8, 2022, the company’s hedge portfolio contained commodity derivatives, which are recorded in the following accounts with fair values measured as indicated (amounts in thousands):

	Level 1			Level 2		Level 3		Total
Assets:
Other current	$	1,865		$	—	$	—	$	1,865
Other long-term		124			—		—		124
Total		1,989			—		—		1,989
Liabilities:
Other current		(119	)		—		—		(119	)
Other long-term		—			—		—		—
Total		(119	)		—		—		(119	)
Net Fair Value	$	1,870		$	—	$	—	$	1,870

As of January 1, 2022, the company’s hedge portfolio contained commodity derivatives, which are recorded in the following accounts with fair values measured as indicated (amounts in thousands):

	Level 1			Level 2		Level 3		Total
Assets:
Other current	$	3,955		$	—	$	—	$	3,955
Other long-term		—			—		—		—
Total		3,955			—		—		3,955
Liabilities:
Other current		(220	)		—		—		(220	)
Other long-term		—			—		—		—
Total		(220	)		—		—		(220	)
Net Fair Value	$	3,735		$	—	$	—	$	3,735

Derivative Instruments Located on Condensed Consolidated Balance Sheet

The company has the following derivative instruments located on the Condensed Consolidated Balance Sheets, which are utilized for the risk management purposes detailed above (amounts in thousands):

	Derivative Assets						Derivative Liabilities
	October 8, 2022			January 1, 2022			October 8, 2022			January 1, 2022
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Other current assets	$	1,865	Other current assets	$	3,955	Other accrued liabilities	$	119	Other accrued liabilities	$	220
Commodity contracts	Other assets		124	Other assets		—	Other long-term liabilities		—	Other long-term liabilities		—
Total		$	1,989		$	3,955		$	119		$	220

Effect of Derivative Instruments for Deferred Gains And (Losses) on Closed Contracts and Effective Portion in Fair Value on AOCI, Utilized for Risk Management Purposes (Detail)

The company had the following derivative instruments for deferred gains and (losses) on closed contracts and the effective portion for changes in fair value recorded in AOCI (no amounts were excluded from the effectiveness test), all of which are utilized for the risk management purposes detailed above (amounts in thousands and net of tax):

	Amount of Gain or ( Loss)						Amount of Gain
	Recognized in AOCI on Derivatives						Reclassified from AOCI
	(Effective Portion)					Location of Gain or (Loss)	into Income (Effective Portion)
Derivatives in Cash Flow	For the Twelve Weeks Ended					Reclassified from AOCI	For the Twelve Weeks Ended
Hedge Relationships(1)	October 8, 2022		October 9, 2021			into Income (Effective Portion)(2)	October 8, 2022		October 9, 2021
Interest rate contracts	$	—	$	—		Interest expense	$	86	$	86
Commodity contracts		7,851		(3,618	)	Production costs(3)		1,822		340
Total	$	7,851	$	(3,618	)		$	1,908	$	426

	Amount of Gain or (Loss)						Amount of Gain
	Recognized in AOCI on Derivatives						Reclassified from AOCI
	(Effective Portion)					Location of Gain or (Loss)	into Income (Effective Portion)
Derivatives in Cash Flow	For the Forty Weeks Ended					Reclassified from AOCI	For the Forty Weeks Ended
Hedge Relationships(1)	October 8, 2022		October 9, 2021			into Income (Effective Portion)(2)	October 8, 2022		October 9, 2021
Interest rate contracts	$	—	$	2,927		Interest expense	$	287	$	8
Commodity contracts		2,654		(6,142	)	Production costs(3)		4,220		792
Total	$	2,654	$	(3,215	)		$	4,507	$	800

1.Amounts in parentheses indicate debits to determine net income.

2.Amounts in parentheses, if any, indicate credits to determine net income.

Included in materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately).

Accumulated Other Comprehensive Loss (Income) Related to Derivative Transactions

At October 8, 2022, the balance in AOCI related to commodity price risk and interest rate risk derivative transactions that closed or will expire over the following years are as follows (amounts in thousands and net of tax) (amounts in parenthesis indicate a debit balance):

	Commodity Price Risk Derivatives		Interest Rate Risk Derivatives		Totals
Closed contracts	$	12	$	2,776	$	2,788
Expiring in 2022		358		—		358
Expiring in 2023		1,040		—		1,040
Expiring in 2024		4		—		4
Total	$	1,414	$	2,776	$	4,190

Financial Contracts Hedging Commodity Risk

As of October 8, 2022, the company had the following outstanding financial contracts that were entered to hedge commodity risk (amounts in thousands):

	Notional Amount
Wheat contracts	$	19,606
Soybean oil contracts		11,261
Natural gas contracts		6,491
Corn contracts		1,443
Total	$	38,801