v3.26.1
Derivative Financial Instruments
 3 Months Ended
Apr. 04, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Cash Flow Hedges

Our cash flow hedges consist of forward interest rate swaps to manage our exposure to interest rate movements on a portion of our debt through January 1, 2031. Our forward interest rate swaps hedge forecasted transactions through January 1, 2031.

The notional amounts of derivative instruments are as follows:

(Dollars in thousands)
April 4,
2026		December 31,
2025
Derivative instruments designated as hedging instruments:
Interest rate contracts$150,000 $150,000 

The following table summarizes the fair value and presentation on the unaudited condensed consolidated balance sheets for derivative instruments:

(Dollars in thousands)
Balance Sheet LocationApril 4,
2026		December 31,
2025
Derivative instruments designated as hedging instruments:
Interest rate contractsOther assets, current$2,878 $2,547 
Other assets9,317 9,271 
Accumulated other comprehensive income activities during the three months ended April 4, 2026 were as follows (in thousands):

December 31,
2025		Three Months Ended April 4, 2026April 4,
2026
BalanceChanges in Fair Value RecognizedReclassifications to Income StatementBalance
Cash flow hedges, before tax totals$11,543 $1,380 $(752)$12,171 

Unrealized (losses) gains associated with our hedging transactions recognized in other comprehensive income are presented in the following table:

(Dollars in thousands)
Three Months Ended
April 4,
2026		March 29,
2025
Change in Other Comprehensive Income:
Interest rate contracts$481 $(2,374)

We began reclassifying gains/losses associated with our cash flow hedges from accumulated other comprehensive income to the condensed statements of income when the Forward Interest Rate Swaps became effective as of January 1, 2024. We reclassify amounts to income as the hedged item impacts earnings and those amounts are presented in the following table:

(Dollars in thousands)
Three Months Ended
April 4,
2026		March 29,
2025
Interest rate contracts:
Interest expense$752 $948 

The pre-tax deferred gains recorded in other comprehensive income that will mature in the next 12 months total $2.9 million.