Hedging and Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 24, 2022

Hedging and Derivative Financial Instruments

Schedule of fair values derivative instruments

The following table presents the fair values of the Company’s derivative instruments (in thousands): 

		September 24, 2022				December 25, 2021
	Condensed Consolidated Balance Sheets Location	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Derivatives not designated as hedging instruments under Subtopic 815-20
Foreign currency contracts(1)	Accrued expenses	$	—	$	3,255	$	—	$	—
Total derivatives not designated as hedging instruments		$	—	$	3,255	$	—	$	—
Derivatives designated as hedging instruments under Subtopic 815-20
Interest rate caps - short term	Prepaid expenses and other current assets	$	1,187	$	—	$	—	$	—
Interest rate caps - long term	Other long-term assets		2,248		—		—		—
Total derivatives designated as hedging instruments		$	3,435	$	—	$	—	$	—
Total derivatives		$	3,435	$	3,255	$	—	$	—

(1) Derivative instruments within this category are subject to master netting arrangements and are presented on a net basis in the Condensed Consolidated Balance Sheets in accordance with ASC 210, Balance Sheet, Subtopic 210-20. See tables below showing the effects of offsetting derivative assets and liabilities.

Schedule of pre-tax effect of cash flow hedge accounting on accumulated OCI

The following table presents the pre-tax effect of cash flow hedge accounting on accumulated OCI for the periods presented (in thousands): 

	Amount of Gain or (Loss) Recognized in OCI
	13 Weeks Ended				39 Weeks Ended
Derivatives in Subtopic 815-20 Hedging Relationships	September 24, 2022		September 25, 2021		September 24, 2022		September 25, 2021
Derivatives in cash flow hedging relationships
Interest rate caps	$	(1,785)	$	—	$	(1,785)	$	—
	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income
		13 Weeks Ended				39 Weeks Ended
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income	September 24, 2022		September 25, 2021		September 24, 2022		September 25, 2021
Derivatives in cash flow hedging relationships
Interest expense, net	$	—	$	—	$	—	$	—

Schedule of derivative financial instruments on Statements of Operations

The following table presents the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations for the periods presented (in thousands): 

		Loss Recognized
		13 Weeks Ended		39 Weeks Ended
		September 24,	September 25,	September 24,	September 25,
	Statement of Operations Location	2022	2021	2022	2021
Total amounts of expense presented in the Statements of Operations in which the derivatives not designated as hedging are recorded	Selling, general and administrative	$ 43,965	$ 31,189	$ 117,329	$ 91,367
The effects of derivatives not designated as hedging instruments under Subtopic 815-20:
Foreign currency contracts	Selling, general and administrative	2,758	—	3,255	—
Total amounts of expense presented in the Statements of Operations in which the derivatives designated as hedging are recorded	Interest expense, net	6,679	12,547	18,414	24,613
The effects of derivatives designated as hedging instruments under Subtopic 815-20:
Interest rate caps	Interest expense, net	—	—	—	—

Schedule of net amounts of derivative assets

Offsetting of Derivative Assets
As of September 24, 2022
							Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets Presented in the Balance Sheet		Financial Instruments		Cash Collateral Posted		Gross Amounts of Recognized Assets
Derivatives
Foreign currency contracts	$	25	$	(25)	$	—	$	—	$	—	$	—
Total derivatives, subject to a master netting arrangement		25		(25)		—		—		—		—
Total derivatives, not subject to a master netting arrangement		3,435		—		3,435		—		—		3,435
Total derivatives	$	3,460	$	(25)	$	3,435	$	—	$	—	$	3,435

Schedule of net amounts of derivative liabilities

Offsetting of Derivative Liabilities
As of September 24, 2022
								Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		'	Financial Instruments		Cash Collateral Posted		Net Amount
Derivatives
Foreign currency contracts	$	(3,280)	$	25	$	(3,255)		$	—	$	—	$	(3,255)
Total derivatives, subject to a master netting arrangement		(3,280)		25		(3,255)			—		—		(3,255)
Total derivatives, not subject to a master netting arrangement		—		—		—			—		—		—
Total derivatives	$	(3,280)	$	25	$	(3,255)		$	—	$	—	$	(3,255)