v3.25.2
Derivative Financial Instruments
 6 Months Ended
Jun. 28, 2025
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 June 28, 2025 and December 28, 2024, 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, subsequent to the cessation of the London Interbank Offered Rate (“LIBOR”) interest rate on June 30, 2023, established a 5.317% upper limit on the Secured Overnight Financing Rate (“SOFR”) interest rate applicable to a substantial portion of the borrowings under the senior secured term loan facility (the “Term Loan Credit Facility”) through the first quarter of 2025. These interest rate cap agreements had previously qualified for hedge accounting treatment; however, in September 2023, we de-designated the interest rate cap in connection with the refinancing of our Term Loan Credit Facility, the impact of which was immaterial.
The notional amounts and fair values of derivative instruments in our Condensed Consolidated Balance Sheets are as follows: 
 
Notional Amounts (1)
Fair Value
 June 28, 2025December 28, 2024June 28, 2025December 28, 2024
Derivatives not receiving hedge accounting treatment recorded in:
Other current assets
Foreign exchange contracts$121,401 $472,324 $315 $12,510 
Interest rate cap— 1,375,000 — — 
Other(2)
1,265 1,265 11,540 9,616 
Accrued expenses and other
       Foreign exchange contracts244,996 189,044 (3,426)(780)
    Total$367,662 $2,037,633 $8,429 $21,346 
(1) Notional amounts represent the gross amount of foreign currency bought or sold at maturity for foreign exchange contracts.
(2) Related to a convertible note receivable derivative.
The amount recognized in earnings from our derivative instruments is as follows and is largely offset by the change in fair value of the underlying hedged assets or liabilities:
Thirteen Weeks EndedTwenty-Six Weeks Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Derivative instruments not qualifying as cash flow hedges:Location of (gain) loss in income
Net (gain) loss recognized in earningsNet foreign currency exchange loss$(10,272)$(2,500)$(26,996)$(9,955)
Interest expense$— $276 $— $685 
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 Condensed Consolidated Balance Sheets. See Note 5, “Fair Value Measurements”, for information on derivative fair values recorded on our Condensed Consolidated Balance Sheets for the periods presented.