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Derivative Instruments | 9 Months Ended
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Jun. 27, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | DERIVATIVE INSTRUMENTS: The Company enters into contractual derivative arrangements to manage changes in market conditions related to interest on debt obligations, including interest rate swap agreements, which are recognized as either assets or liabilities on the balance sheet at fair value at the end of each quarter. The counterparties to the Company's contractual derivative agreements are all major international financial institutions. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company continually monitors its positions and the credit ratings of its counterparties and does not anticipate nonperformance by the counterparties. The Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged and how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively for designated hedges. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Cash Flow Hedges The Company has $2.4 billion notional amount of outstanding interest rate swap agreements as of June 27, 2025, which fix the rate on a like amount of variable rate borrowings with varying maturities through May 2028. During the nine months ended June 27, 2025, interest rate swaps with notional amounts of $800.0 million matured. The Company entered into $900.0 million notional amount of interest rate swap agreements during the nine months ended June 27, 2025 to hedge the cash flow risk of variability in interest payments on variable rate borrowings. Changes in the fair value of a derivative that is designated as and meets all the required criteria for a cash flow hedge are recorded in accumulated other comprehensive loss and reclassified into earnings as the underlying hedged item affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Cash flows from hedging transactions are classified in the same category as the cash flows from the respective hedged item. As of June 27, 2025 and September 27, 2024, $19.7 million and $36.5 million, respectively, of unrealized net of tax gains related to the interest rate swaps were included in "Accumulated other comprehensive loss" on the Condensed Consolidated Balance Sheets. The following table summarizes the unrealized gain (loss) arising from the Company's derivatives designated as cash flow hedging instruments on Other comprehensive income (loss) (in thousands):
| Three Months Ended |  | Nine Months Ended
| June 27, 2025 |  | June 28, 2024 |  | June 27, 2025 |  | June 28, 2024
Interest rate swap agreements(1) | $ | (4,723) |  |  | $ | 10,820 |  |  | $ | 11,735 |  |  | $ | 10,705 |
(1) | Change in amounts driven by fluctuations in forward interest rates, the maturity of previously existing interest rate swaps and the initiation of new interest rate swaps.
The following table summarizes the location and fair value, using Level 2 inputs (see Note 11 for a description of the fair value levels), of the Company's derivatives designated as hedging instruments on the Condensed Consolidated Balance Sheets (in thousands):
|  | Balance Sheet Location |  | June 27, 2025 |  | September 27, 2024
ASSETS |  |  |  |  |  |
Interest rate swap agreements |  | Prepayments and other current assets |  | $ | — |  |  | $ | 8,134 |
Interest rate swap agreements |  | Other Assets |  | 29,098 |  |  | 41,158 |
|  |  |  | $ | 29,098 |  |  | $ | 49,292 |
LIABILITIES |  |  |  |  |  |
Interest rate swap agreements |  | Other Noncurrent Liabilities |  | $ | 2,538 |  |  | $ | — |
The following table summarizes the location of the gain reclassified from "Accumulated other comprehensive loss" into earnings for derivatives designated as hedging instruments on the Condensed Consolidated Statements of Income (in thousands):
|  |  |  | Three Months Ended |  | Nine Months Ended
|  | Income Statement Location |  | June 27, 2025 |  | June 28, 2024 |  | June 27, 2025 |  | June 28, 2024
Interest rate swap agreements |  | Interest Expense, net |  | $ | (8,666) |  |  | $ | (19,124) |  |  | $ | (34,467) |  |  | $ | (57,089) |
As of June 27, 2025, the Company has a euro denominated term loan in the amount of €90.5 million. The term loan was designated as a hedge of the Company's net euro currency exposure represented by certain holdings in the Company's European affiliates. At June 27, 2025, the net of tax gain expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months based on current market rates is approximately $17.0 million.

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