Company: UTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001628280-25-047281
Chunk: 90

Company: Utz Brands, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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0.Other Notes Payable and Finance LeasesAmounts outstanding under notes payable and finance leases consisted of the following:(in millions)As ofSeptember 28, 2025As of December 29, 2024Note payable – IO notes$13.3 $12.1Finance lease obligations9.7 9.7Other— 0.1Total notes payable23.0 21.9Less: current portion(7.2)(6.9)Long term portion of notes payable$15.8 $15.0Interest ExpenseInterest expense consisted of the following:(in millions)Thirteen weeks ended September 28, 2025Thirteen weeks ended September 29, 2024Thirty-nine weeks ended September 28, 2025Thirty-nine weeks ended September 29, 2024Company’s long-term debt$10.0 $12.0 $31.8 $33.0 Amortization of deferred financing fees0.3 0.3 1.0 2.8 IO loans0.3 0.3 0.7 0.8 Total interest$10.6 $12.6 $33.5 $36.6 

11

10.DERIVATIVE FINANCIAL INSTRUMENTS, PURCHASE COMMITMENTS, WARRANTS AND FAIR VALUE

Derivative Financial InstrumentsThe Company uses interest rate swaps to manage its interest rate exposure on its Term Loan B and its Real Estate Term Loan. The interest rate swaps are recorded in the Company’s Consolidated Balance Sheets at fair value. See Note 9. Term Debt, Revolving Credit Facility, and Other Notes Payable.   The interest rate swaps are designated as cash flow hedges under ASC 815-20 and are included in the Company’s Consolidated Balance Sheets at fair value. Changes in the fair value of the effective portion of the hedges are recorded in Accumulated Other Comprehensive Income and reclassified into Interest Expense in the same period the hedged items affect earnings. The portion of the derivative that is no longer designated as a hedge is accounted for at fair value with mark-to-market adjustments recorded immediately in earnings. Cash flows associated with derivatives are reported in Net cash provided by operating activities in the Consolidated Statements of Cash Flows.  In September 2025, the Company terminated the previously existing swap agreement associated with the Term Loan B, resulting in the receipt of cash proceeds totaling $12.1 million which was recorded