v3.25.2
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Total Notional Amounts of the Company's Derivative Instruments
Total notional amounts of the Company’s derivative instruments as of December 28, 2024 and December 30, 2023 were as follows:
(millions)December 28,
2024		December 30,
2023
Foreign currency exchange contracts$284 $35 
Commodity contracts14 3 
Interest rate contracts250 — 
Total$548 $38 
Schedule of Derivative Assets at Fair Value
The following table presents assets and liabilities that were measured at fair value in the Company's Consolidated Balance Sheet on a recurring basis as of December 28, 2024 and December 30, 2023:
Derivatives designated as hedging instruments
December 28, 2024December 30, 2023
(millions)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Interest rate contracts:
Other current assets$— $2 $2 $— $— $— 
Other assets— 3 3 — — — 
Total assets$— $5 $5 $— $— $— 
Derivatives not designated as hedging instruments
December 28, 2024December 30, 2023
(millions)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Foreign currency exchange contracts:
Other current assets$— $4 $4 $— $— $— 
Other assets— 1 1 — — — 
Total assets$— $5 $5 $— $— $— 
Liabilities:
Foreign currency exchange contracts:
Other current liabilities$— $3 $3 $— $— $— 
Total liabilities$— $3 $3 $— $— $— 
Schedule of Derivative Liabilities at Fair Value
The following table presents assets and liabilities that were measured at fair value in the Company's Consolidated Balance Sheet on a recurring basis as of December 28, 2024 and December 30, 2023:
Derivatives designated as hedging instruments
December 28, 2024December 30, 2023
(millions)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Interest rate contracts:
Other current assets$— $2 $2 $— $— $— 
Other assets— 3 3 — — — 
Total assets$— $5 $5 $— $— $— 
Derivatives not designated as hedging instruments
December 28, 2024December 30, 2023
(millions)Level 1Level 2TotalLevel 1Level 2Total
Assets:
Foreign currency exchange contracts:
Other current assets$— $4 $4 $— $— $— 
Other assets— 1 1 — — — 
Total assets$— $5 $5 $— $— $— 
Liabilities:
Foreign currency exchange contracts:
Other current liabilities$— $3 $3 $— $— $— 
Total liabilities$— $3 $3 $— $— $— 
Schedule of the Effect of Derivative Instrument on the Consolidated Statement of Income
The effect of derivative instruments on the Company's Consolidated Statement of Income and Consolidated Statement of Comprehensive Income for the year-to-date periods ended December 28, 2024, December 30, 2023, and December 31, 2022 were as follows:
Derivatives designated as hedging instruments
Gain (loss) recognized in AOCIGain (loss) excluded from assessment of hedge effectivenessLocation of gain (loss) in income of excluded component
(millions)December 28, 2024December 30, 2023December 31, 2022December 28, 2024December 30, 2023December 31, 2022
Interest rate contracts$5 $— $— $— $— $— Interest expense
Year-to-date period ended
December 28,
2024		December 30,
2023		December 31,
2022
(millions)Interest ExpenseInterest ExpenseInterest Expense
Interest rate contracts:$— $— $— 
     Amount of gain (loss) reclassified from AOCI into income$— $— $— 
During the year-ended December 28, 2024, the Company entered into an interest rate swap contract with an initial notional amount of $250 million to manage the variability of cash flows associated with our variable rate debt. The contract matures on December 27, 2027 and requires periodic interest rate settlements. These derivatives are accounted for as cash flow hedges and the related net gain or loss is recorded in AOCI and will be amortized to interest expense over the term of the contract. These derivatives are used to hedge the variability of interest payment cash flows on a portion of our future debt obligations.
During the next 12 months, the Company expects approximately $2 million of net deferred gains reported in accumulated other comprehensive income (AOCI) at December 28, 2024, to be reclassified to interest expense.
Derivatives not designated as hedging instruments
The effect of allocated and direct impacts to derivative instruments on the Company's Consolidated Statement of Income for the years-ended December 28, 2024, December 30, 2023, and December 31, 2022 were as follows:
Gain (loss) recognized in cost of goods sold
(millions)December 28, 2024December 30, 2023December 31, 2022
Commodity contracts$(2)$(13)$15 
Foreign currency derivatives$(2)$(2)$12