During the periods covered by this report, the Company has made no changes to its policies or strategies for the use of derivative instruments and there has been no change in related accounting methods. For the Company's derivative instruments, which are designated as cash flow hedges, gains and losses are initially reported as a component of accumulated other comprehensive loss and subsequently recognized in earnings with the corresponding hedged item.

The Company is exposed to the risk that the earnings and cash flows could be adversely impacted due to fluctuations in interest rates. To mitigate this risk, the Company entered into $450.0 million of interest rate swap contracts as of June 27, 2025. As of June 27, 2025 and December 31, 2024, these contracts had notional values of $437.5 million and $439.1 million, respectively. These contracts are designated and qualify as effective cash flow hedges.

The following table summarizes the amount at fair value and location of the derivative instruments for interest rate hedges in the Condensed Consolidated Balance Sheets:


	Fair Value (level 2)
		As of
		June 27,		December 31,
(In thousands)	Balance sheet caption	2025		2024
Interest rate swap designated as cash flow hedge	Prepaid expenses and other current assets	$	918	$	1,918
Interest rate swap designated as cash flow hedge	Other non-current assets	$	—	$	1,938
Interest rate swap designated as cash flow hedge	Other non-current liabilities	$	2,233	$	—
Interest rate swap designated as cash flow hedge	Accumulated other comprehensive loss	$	(1,316)	$	3,856

The Company regularly assesses the creditworthiness of the counterparty. As of June 27, 2025, the counterparty to the interest rate swaps had performed in accordance with its contractual obligations. Both the counterparty credit risk and the Company's credit risk were considered in the fair value determination.

Net interest rate derivative gains of $0.8 million and $1.5 million were recognized in interest expense, net, in the Condensed Consolidated Statements of Income (Loss) during the three and six months ended June 27, 2025, respectively. Net interest rate derivative gains of $1.4 million and $2.9 million were recognized in interest expense, net, in the Condensed Consolidated Statements of Income (Loss) during the three and six months ended June 28, 2024, respectively. The Company expects $0.8 million of existing interest rate swap gains reported in accumulated other comprehensive loss as of June 27, 2025 to be recognized in earnings within the next 12 months.