Derivative Financial Instruments (Tables)

9 Months Ended

Oct. 09, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Net Fair Value of Commodity Price Risk

As of October 9, 2021, 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	$	6,428	$	—	$	—	$	6,428
Other long-term		1,111		—		—		1,111
Total		7,539		—		—		7,539
Liabilities:
Other current		—		—		—		—
Other long-term		—		—		—		—
Total		—		—		—		—
Net Fair Value	$	7,539	$	—	$	—	$	7,539

As of January 2, 2021, 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	$	16,684		$	—	$	—	$	16,684
Other long-term		731			—		—		731
Total		17,415			—		—		17,415
Liabilities:
Other current		(5	)		—		—		(5	)
Other long-term		(83	)		—		—		(83	)
Total		(88	)		—		—		(88	)
Net Fair Value	$	17,327		$	—	$	—	$	17,327

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 9, 2021			January 2, 2021			October 9, 2021			January 2, 2021
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	$	6,428	Other current assets	$	16,684	Other accrued liabilities	$	—	Other accrued liabilities	$	5
Commodity contracts	Other assets		1,111	Other assets		731	Other long-term liabilities		—	Other long-term liabilities		83
Total		$	7,539		$	17,415		$	—		$	88

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 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)	October 9, 2021			October 3, 2020		into Income (Effective Portion)(2)	October 9, 2021		October 3, 2020
Interest rate contracts	$	—		$	—	Interest expense	$	86	$	(25	)
Commodity contracts		(3,618	)		9,409	Production costs(3)		340		(652	)
Total	$	(3,618	)	$	9,409		$	426	$	(677	)

	Amount of Gain or (Loss)						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 Forty Weeks Ended					Reclassified from AOCI	For the Forty Weeks Ended
Hedge Relationships(1)	October 9, 2021			October 3, 2020		into Income (Effective Portion)(2)	October 9, 2021		October 3, 2020
Interest rate contracts	$	2,927		$	—	Interest expense	$	8	$	(83	)
Commodity contracts		(6,142	)		2,202	Production costs(3)		792		(1,669	)
Total	$	(3,215	)	$	2,202		$	800	$	(1,752	)

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

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

3. 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 9, 2021, 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	$	252	$	3,150	$	3,402
Expiring in 2021		619		—		619
Expiring in 2022		5,036		—		5,036
Total	$	5,907	$	3,150	$	9,057

Financial Contracts Hedging Commodity Risk

As of October 9, 2021, the company had the following outstanding financial contracts that were entered to hedge commodity risk (amounts in thousands):

	Notional Amount
Wheat contracts	$	3,287
Soybean oil contracts		4,060
Natural gas contracts		4,839
Corn contracts		2,057
Total	$	14,243