Subsequent Events

6 Months Ended

Jul. 01, 2017

19.	SUBSEQUENT EVENTS

On July 28, 2017, the Company acquired The Thompson Company, Braunger Foods and Variety Foods, broadline distributors with aggregate annual sales of approximately $130 million, all owned and operated by TOBA Inc. This acquisition, funded with cash flows from operations, furthers our strategy to expand our market share with independent restaurants.

On August 1, 2017, the Company entered into four-year interest rate swap agreements with a notional amount of $1.1 billion, reducing to $825 million in the fourth year, effectively converting approximately half of the Amended and Restated 2016 Term Loan from a variable to a fixed rate loan. Prospectively, the Company will pay an aggregate rate of 4.47% on the notional amount covered by the interest rate swaps, comprised of 1.72% plus a spread of 2.75%. The interest rate swaps are designated as effective cash flow hedges.