Derivative Financial Instruments (Tables)

6 Months Ended

Jul. 15, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Net Fair Value of Commodity Price Risk

As of July 15, 2023, 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	$	1,664		$	—	$	—	$	1,664
Other long-term		672			—		—		672
Total		2,336			—		—		2,336
Liabilities:
Other current		(1,109	)		—		—		(1,109	)
Other long-term		(45	)		—		—		(45	)
Total		(1,154	)		—		—		(1,154	)
Net Fair Value	$	1,182		$	—	$	—	$	1,182

As of December 31, 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	$	782		$	—	$	—	$	782
Other long-term		2			—		—		2
Total		784			—		—		784
Liabilities:
Other current		(1,149	)		—		—		(1,149	)
Other long-term		(86	)		—		—		(86	)
Total		(1,235	)		—		—		(1,235	)
Net Fair Value	$	(451	)	$	—	$	—	$	(451	)

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
	July 15, 2023			December 31, 2022			July 15, 2023			December 31, 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	$	1,664	Other current assets	$	782	Other accrued liabilities	$	1,109	Other accrued liabilities	$	1,149
Commodity contracts	Other assets		672	Other assets		2	Other long-term liabilities		45	Other long-term liabilities		86
Total		$	2,336		$	784		$	1,154		$	1,235

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 (Loss) or Gain						Amount of Gain or (Loss)
	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)	July 15, 2023		July 16, 2022			into Income (Effective Portion)(2)	July 15, 2023			July 16, 2022
Interest rate contracts	$	—	$	—		Interest expense	$	86		$	86
Commodity contracts		3,092		(16,147	)	Production costs(3)		(381	)		1,544
Total	$	3,092	$	(16,147	)		$	(295	)	$	1,630

	Amount of (Loss) or Gain						Amount of Gain or (Loss)
	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 Twenty-Eight Weeks Ended					Reclassified from AOCI	For the Twenty-Eight Weeks Ended
Hedge Relationships(1)	July 15, 2023		July 16, 2022			into Income (Effective Portion)(2)	July 15, 2023			July 16, 2022
Interest rate contracts	$	—	$	—		Interest expense	$	201		$	201
Commodity contracts		48		(5,197	)	Production costs(3)		(1,436	)		2,398
Total	$	48	$	(5,197	)		$	(1,235	)	$	2,599

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 July 15, 2023, 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	$	8		$	2,489	$	2,497
Expiring in 2023		(246	)		—		(246	)
Expiring in 2024		1,131			—		1,131
Total	$	893		$	2,489	$	3,382

Financial Contracts Hedging Commodity Risk

As of July 15, 2023, the company had the following outstanding financial contracts that were entered to hedge commodity risk (amounts in thousands):

	Notional Amount
Wheat contracts	$	5,664
Soybean oil contracts		16,668
Natural gas contracts		4,294
Total	$	26,626