Company: UTZ
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001739566-25-000053
Chunk: 133

Company: Utz Brands, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 133
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 accrued dividends to stockholders which flow out of UBH.Other Notes Payable and Capital LeasesDuring the first fiscal quarter of 2022, the Company bought out and terminated the contracts of multiple distributors who had previously been providing services to the Company. These transactions were accounted for as contract terminations and asset purchases and resulted in expense of $23.0 million for the fiscal year ended January 1, 2023. The outstanding payable balance of these transactions was $0.5 million as of December 31, 2023.During the first fiscal quarter of 2020, the Company purchased intellectual property that included a deferred purchase price of $0.5 million, of which $0.1 million and $0.2 million was outstanding as of December 29, 2024 and December 31, 2023, respectively.Amounts outstanding under notes payable consisted of the following:(in thousands)As ofDecember 29, 2024As of December 31, 2023Note payable – IO notes$12,095 $16,478Finance lease obligations(1)9,707 10,145Other100 200Total notes payable21,902 26,823Less: current portion(6,917)(7,649)Long term portion of notes payable$14,985 $19,174(1) See Note 15. Leases for further discussion on our finance lease obligations.During the fiscal year ended January 1, 2023, the Company sold an additional $5.0 million of notes receivable from IOs for proceeds of $5.0 million to a financial institution. During the fiscal year ended December 31, 2023, the Company sold an additional $5.2 million of notes receivable from IOs for proceeds of $5.4 million to a financial institution. During the fiscal year ended December 29, 2024, the Company sold an additional $4.6 million of notes receivable from IOs for proceeds of $4.9 million to a financial institution. Due to the structure of these transactions, they did not qualify for sale accounting treatment and the Company has recorded the notes payable obligation owed by the IOs to the financial institution on its books; the corresponding notes receivable also remained on the Company’s books. The Company services the loans for the financial institution by collecting principal and interest from the IOs and passing it through to the institution. The underlying notes have various maturity dates through