Company: UTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001628280-25-047281
Chunk: 44

Company: Utz Brands, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 (loss) and amortized into earnings over the remaining term of the loan.  In addition, on the same date, the Company entered into a new interest rate swap agreement with a notional amount of $500.0 million. This agreement is scheduled to mature on December 31, 2028.  Under the terms of this agreement, the Company is obligated to make periodic payments at the fixed interest rate of 3.23%, while receiving periodic payments based on the one-month SOFR from the counterparty.  The interest rate swap is designated as cash flow hedge under ASC 815-20.Warrant LiabilitiesAs of December 29, 2024, there were 7,200,000 private placement warrants (“Warrants”) outstanding, which were accounted for as derivative liabilities pursuant to ASC 815-40. The Warrants had a term of five years.  In August 2025 the Warrants were fully exercised in a cashless exchange resulting in the issuance of 1,307,873 shares of the Company's Class A Common Stock. A reconciliation of the changes in the warrant liability during the thirty-nine weeks ended September 28, 2025 is as follows:(in millions)Fair value of warrant liabilities as of December 29, 2024$33.0 Gain on remeasurement of warrant liability(23.5)Fair value of warrant liabilities as of June 29, 2025$9.5 Loss on remeasurement of warrant liability(1)0.7 Exercise of Warrants(10.2)Fair value of warrant liabilities as of September 28, 2025$— (1) Loss on remeasurement relates to the period from June 30, 2025 through the exercise date in August 2025.

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Purchase CommitmentsThe Company has outstanding purchase commitments for specific quantities at fixed prices for certain key ingredients to economically hedge commodity input prices. These purchase commitments totaled $87.2 million as of September 28, 2025 and $61.1 million as of December 29, 2024. The Company accrues for losses on firm purchase commitments in a loss position at the end of each reporting period to the extent that there is an active observable market. The Company has recorded purchase commitment (losses) gains totaling $(0.2) million and $(0.8) million for the thirteen weeks ended September 28, 2025 and September 29, 2024, respectively, and