Derivatives

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

DERIVATIVES

The Company's earnings, cash flows and financial position are exposed to market risks relating to interest rates. It is the Company's policy to minimize its exposure to adverse changes in interest rates and manage interest rate risks inherent in funding the Company with debt. The Company addresses this risk by maintaining a mix of fixed and floating rate debt and occasionally entering into interest rate swaps for a portion of its variable rate debt to minimize interest rate volatility.

As of December 31, 2022, the Company had no interest rate swaps outstanding. The following is a summary of the Company's interest rate swaps as of December 25, 2021:

Type	Notional Amount			Effective Date	Fixed Rate	Variable Rate
Interest rate swap	$	5,796	(1)	November 7, 2014 through November 7, 2024	4.500%	1 Month LIBOR

The following table summarizes the fair values of derivative instruments included in the Company's Consolidated Balance Sheets:

	Location on Consolidated Balance Sheets	Fair Value
		2022		2021
Liability Derivatives:
Derivatives designated as hedging instruments:
Interest rate swaps, current portion	Accrued Expenses	$	—	$	110
Interest rate swaps, long-term portion	Other Long-Term Liabilities	—		100
Total Liability Derivatives		$	—	$	210

The following tables summarize the pre-tax impact of derivative instruments on the Company's consolidated financial statements:

	Amount of Gain or (Loss) Recognized in AOCIL on the effective portion of the Derivative
	2022		2021
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate swaps	$	—	$	94
	Amount of Gain or (Loss) Reclassified from AOCIL on the effective portion into Income (1)(2)
	2022		2021
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate swaps	$	(7)	$	135
	Amount of Gain or (Loss) Recognized on the Dedesignated Portion in Income on Derivative (3)
	2022		2021
Derivatives dedesignated as hedging instruments:
Cash flow hedges - interest rate swaps	$	210	$	511

(1)The amount of gain (loss) reclassified from AOCIL is included in interest expense on the Company's Consolidated Statements of Operations.

(2)The amount of gain (loss) expected to be reclassified from AOCIL into earnings during the next 12 months subsequent to December 31, 2022 is $0.

(3)The amount of gain (loss) recognized in income on the dedesignated and terminated portions of interest rate swaps is included in interest expense on the Company's Consolidated Statements of Operations.

On March 16, 2022, the Company terminated an interest rate swap agreement tied to a note payable secured by its facility in Adairsville, Georgia. The settlement payment to terminate the swap agreement was $73. Because it was probable that none of the remaining forecasted interest payments that were being hedged would occur, the related losses in the amount of $177, net of tax, that had been deferred in AOCIL were reclassified into interest expense.