Accumulated Other Comprehensive Income

9 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Loss Other comprehensive income/loss consists of three components: unrealized gains or losses on our AFS marketable investment securities, gains and losses on derivatives in cash flow hedge relationships not yet recognized in earnings, and the gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies. Until realized and reported as a component of net income, these comprehensive income items accumulate and are included within accumulated other comprehensive loss, a subsection within stockholders’ equity in our unaudited interim condensed consolidated balance sheets. Unrealized gains and losses on our investment securities are reclassified from AOCI into earnings when realized upon sale, and are determined based on specific identification of securities sold. Unrealized gains and losses on our cash flow hedges are reclassified from AOCI into earnings when the hedged operating expenses are recognized, which is also when the gains and losses are realized.

The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our unaudited interim condensed consolidated statements of operations (in thousands):


	Fiscal Quarter Ended June 30, 2023								Fiscal Year-To-Date Ended June 30, 2023
	Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total		Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total
Beginning Balance	$	(2,995)	$	240	$	(24,671)	$	(27,426)	$	(5,986)	$	(4,483)	$	(41,172)	$	(51,641)
Other comprehensive income before reclassifications:
Unrealized gains/(losses)	(193)		(375)		—		(568)		2,911		5,177		—		8,088
Foreign currency translation gains/(losses) (1)	—		—		(3,276)		(3,276)		—		—		13,225		13,225
Income tax effect - benefit	—		61		—		61		—		—		—		—
Net of tax	(193)		(314)		(3,276)		(3,783)		2,911		5,177		13,225		21,313
Amounts reclassified from AOCI into earnings:
Realized gains/(losses) (2)	(69)		138		—		69		(220)		(780)		—		(1,000)
Income tax effect - benefit/(expense) (3)	12		(35)		—		(23)		50		115		—		165
Net of tax	(57)		103		—		46		(170)		(665)		—		(835)
Net current-period other comprehensive income/(loss)	(250)		(211)		(3,276)		(3,737)		2,741		4,512		13,225		20,478
Ending Balance	$	(3,245)	$	29	$	(27,947)	$	(31,163)	$	(3,245)	$	29	$	(27,947)	$	(31,163)


	Fiscal Quarter Ended July 1, 2022								Fiscal Year-To-Date Ended July 1, 2022
	Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total		Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total
Beginning Balance	$	(3,800)	$	56	$	(11,937)	$	(15,681)	$	220	$	(122)	$	(10,128)	$	(10,030)
Other comprehensive loss before reclassifications:
Unrealized losses	(414)		(362)		—		(776)		(4,971)		(6)		—		(4,977)
Foreign currency translation losses (1)	—		—		(13,821)		(13,821)		—		—		(15,630)		(15,630)
Income tax effect - benefit	—		97		—		97		—		—		—		—
Net of tax	(414)		(265)		(13,821)		(14,500)		(4,971)		(6)		(15,630)		(20,607)
Amounts reclassified from AOCI into earnings:
Realized gains/(losses) (2)	(15)		(314)		—		(329)		527		(412)		—		115
Income tax effect - benefit/(expense) (3)	3		81		—		84		(2)		98		—		96
Net of tax	(12)		(233)		—		(245)		525		(314)		—		211
Net current-period other comprehensive loss	(426)		(498)		(13,821)		(14,745)		(4,446)		(320)		(15,630)		(20,396)
Ending Balance	$	(4,226)	$	(442)	$	(25,758)	$	(30,426)	$	(4,226)	$	(442)	$	(25,758)	$	(30,426)

(1)The foreign currency translation gains during the fiscal year-to-date period ended June 30, 2023 were primarily due to the strengthening of other foreign currencies as compared to the U.S. dollar. The foreign currency translation losses during the third quarter of fiscal 2023, the third quarter of fiscal 2022, and the fiscal year-to-date period ended July 1, 2022 were primarily due to the strengthening of the U.S. dollar as compared to other foreign currencies.

(2)Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/(expense), net in our unaudited interim condensed consolidated statements of operations. Realized gains or losses on foreign currency contracts designated as cash flow hedges are included in operating expenses in the unaudited interim condensed consolidated statements of operations.

(3)The income tax benefit or expense is included within provision for income taxes in our unaudited interim condensed consolidated statements of operations.