Derivative Financial Instruments

3 Months Ended

Apr. 01, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

9. DERIVATIVE FINANCIAL INSTRUMENTS

As more fully discussed in the Fiscal 2016 Consolidated Financial Statements, we periodically enter into swap agreements to mitigate our exposure to fluctuations in the price of natural gas and diesel fuel, and, designate these derivatives as cash flow hedges. If there are diesel or natural gas hedge agreements in place, such derivatives are recognized in the financial statements at fair value and the net amounts paid or received upon monthly settlement are generally recorded as adjustments to freight expense (in the case of diesel fuel hedging instruments) or utilities expense (in the case of natural gas hedging instruments), while the effective changes in fair values are generally recorded as components of Accumulated Other Comprehensive Income or Loss (“AOCI”).

No fuel hedge agreements were in place at April 1, 2017 and December 31, 2016 and none were entered into during the fiscal year to date periods ended on those dates.