Derivative Financial Instruments

12 Months Ended

Dec. 28, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

We use foreign currency forward contracts primarily to manage currency risk associated with foreign currency-denominated trade accounts receivable, accounts payable and intercompany loans. At December 28, 2024 and December 30, 2023, we had no derivatives that were designated as hedging instruments.

In the first quarter of 2023, we entered into agreements to purchase interest rate caps, which established a 5.5% upper limit on the LIBOR interest rate applicable to a substantial portion of the borrowings under the Term Loan Credit Facility through the first quarter of 2025. These interest rate cap agreements qualify for hedge accounting treatment and, accordingly, we recorded the fair value of the agreements as an asset and the change in fair value within accumulated other comprehensive loss during the period in which the change occurs. Due to the cessation of the LIBOR interest rate on June 30, 2023, we amended the interest rate cap agreements during the second quarter of 2023 to establish a 5.317% upper limit on the SOFR interest rate in order to align with the conversion to a SOFR-based rate for the underlying Term Loan Credit Facility. We elected to apply the practical expedient under ASU 2020-04 and continued to apply hedge accounting treatment until September 2023, when we dedesignated the interest rate cap in connection with the refinancing of our Term Loan Credit Facility (See Note 6, “Debt”), the impact of which was immaterial.

The notional amounts and fair values of derivative instruments in our Consolidated Balance Sheets are as follows:

	Notional Amounts(1)				Fair Value
	December 28, 2024		December 30, 2023		December 28, 2024		December 30, 2023
Derivatives not receiving hedge accounting treatment recorded in:
Other current assets:
Foreign exchange contracts	$	472,324	$	515,691	$	12,510	$	1,805
Interest rate cap	1,375,000		1,099,807		—		707
Other(2)	1,265		1,265		9,616		8,758
Other assets:
Interest rate cap	—		275,193		—		177
Accrued expenses and other:
Foreign exchange contracts	189,044		1,162,669		(780)		(11,416)
Total	$	2,037,633	$	3,054,625	$	21,346	$	31

(1)Notional amounts represent the gross amount of foreign currency bought or sold at maturity for foreign exchange contracts.

(2)Related to a convertible note receivable derivative.

The amount recognized in earnings from our derivative instruments not receiving hedge accounting treatment, including ineffectiveness, is recorded in net foreign currency exchange (gain) loss as follows and is largely offset by the change in fair value of the underlying hedged assets or liabilities:

		Fiscal Year		Fiscal Year		Fiscal Year
	Location of (gain) loss in income	2024		2023		2022
Derivative instruments not qualifying as cash flow hedges:
Net loss (gain) recognized in earnings	Net foreign currency exchange loss	$	2,884	$	43,096	$	30,310
	Interest expense	884		5,211		—
Derivative instruments qualifying as hedging instruments:
Gain recognized in accumulated other comprehensive income		$	—	$	(1,188)	$	—
Gain reclassified from accumulated other comprehensive income to interest expense	Interest expense	(686)		(349)		—

There were no material gain or loss amounts excluded from the assessment of effectiveness. We report our derivatives at fair value as either assets or liabilities within our Consolidated Balance Sheets. See Note 13, “Fair Value Measurements”, for information on derivative fair values recorded on our Consolidated Balance Sheets for the periods presented.