Annual report pursuant to Section 13 and 15(d)

Equity and Accumulated Other Comprehensive Income

v3.22.4
Equity and Accumulated Other Comprehensive Income
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Equity and Accumulated Other Comprehensive Income
Common Stock
Hillman Solutions Corp. has one class of common stock.
Accumulated Other Comprehensive Loss
The following is the detail of the change in the Company's accumulated other comprehensive loss from December 28, 2019 to December 31, 2022 including the effect of significant reclassifications out of accumulated other comprehensive loss (net of tax):
Accumulated Other Comprehensive Loss
Balance at December 28, 2019 $ (32,040)
Other comprehensive income before reclassifications 2,652 
Amounts reclassified from other comprehensive income¹ — 
Net current period other comprehensive loss 2,652 
Balance at December 26, 2020 (29,388)
Other comprehensive income before reclassifications 1,849 
Amounts reclassified from other comprehensive income² 385 
Net current period other comprehensive income 2,234 
Balance at December 25, 2021 (27,154)
Other comprehensive loss before reclassifications 10,524 
Amounts reclassified from other comprehensive income3
(4,394)
Net current period other comprehensive income 6,130 
Balance at December 31, 2022 $ (21,024)
1.In the year December 26, 2020, there were no amounts reclassified into other comprehensive income.
2.During the year ended December 25, 2021, the Company obtained and amended its interest rate swap agreements to hedge against effective cash flows (i.e. interest payments) on floating-rate debt associated with the Company's new Term Credit Agreement. In accordance with ASC 815, derivatives designated and that qualify as cash flow hedges of interest rate risk record the associated gain or loss within other comprehensive income. For the year ended December 25, 2021, the Company deferred a gain of $2,982, reclassified a loss of $385 and a net of tax of $850 into other comprehensive loss due to hedging activities. The amounts reclassified out of other comprehensive loss were recorded as interest expense. See Note 15 - Derivatives and Hedging for additional information on the interest rate swaps.
3.For the year ended December 31, 2022, the Company deferred a gain of $22,771, reclassified a gain of $4,394 and tax of $4,631 into other comprehensive loss due to hedging activities. The amounts reclassified out of other comprehensive loss were recorded as interest expense. See Note 15 - Derivatives and Hedging for additional information on the interest rate swaps.