Related Party Transactions

9 Months Ended

Sep. 28, 2024

Related Party Transactions [Abstract]

Related Party Transactions

17.RELATED PARTY TRANSACTIONS

In March 2024, the Company made a $320.0 million distribution to KC Parent, which was financed by proceeds from the incremental first lien term loan and cash on-hand and was recorded within additional paid-in capital on the unaudited condensed consolidated balance sheets.

Management Services Agreement—In August 2015, the Company entered into a management services agreement with Partners Group (USA), Inc. (“Partners Group”), a related party of the Company’s ultimate parent, pursuant to which Partners Group agreed to provide certain management and advisory services to the Company on an ongoing basis for an annual management fee of $4.9 million payable in equal quarterly installments. Management services expense is included in selling, general, and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive (loss) income. In connection with the IPO, the management services agreement with Partners Group was terminated in accordance with its terms. Refer to Note 18, Subsequent Events, for further information.

KC Parent, LP Agreement—In March 2024, KC Parent converted to a Delaware limited partnership company and replaced the Amended and Restated KC Parent, LLC Agreement with the KC Parent, LP Agreement. The KC Parent, LP Agreement modified the PIUs Plan to allow for the March 2024 distribution. In March 2024, KC Parent paid a $276.9 million distribution to Class A Unit holders and a $42.6 million distribution to PIU Recipients with units outstanding as of the date of modification pursuant to the KC Parent, LP Agreement and PIUs Plan. Refer to Note 13, Shareholder’s Equity and Equity-Based Compensation. In connection with the IPO, the converted 90,366,089 shares of common stock held by KC Parent were distributed to KC Parent's limited partners. Refer to Note 18, Subsequent Events, for further information.

Lease Agreements—The Company is the lessee in several lease agreements in which a limited partner of KC Parent has ownership interest in the lessor entities. The leases are managed by related parties Pat & Sons Consolidated, LLC, Rainbow Rascals Management Company, LLC, EIG14T Fund III, LLC, EIG14T Fund II, LLC, or 814 Berkley LLC and range in terms from one to 12 years. Rent expense is included in cost of services (excluding depreciation and impairment) and selling, general, and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive (loss) income.

As of September 28, 2024 and December 30, 2023, there were no amounts due to unconsolidated related parties.

The table below details the Company’s expenses recognized from unconsolidated related parties (in thousands):

	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Partners Group management services	$	1,216	$	1,216	$	3,648	$	3,648
Related parties rent		4,551		4,766		14,100		14,558

The table below represents future minimum fixed payments under non-cancelable operating leases with related parties, not including unexercised renewal options, real estate taxes, insurance, utilities, and maintenance costs, (in thousands):

	Related Party
	Leases
Remainder of 2024	$	4,202
2025		15,838
2026		14,641
2027		13,891
2028		13,450
Thereafter		66,449
	$	128,471