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Derivative Financial Instruments
 12 Months Ended
Sep. 28, 2013
Derivative Instruments and Hedges, Assets [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
We principally use derivative financial instruments to manage foreign exchange risk related to foreign operations and foreign currency transactions and interest rate risk associated with long-term debt. We enter into derivative financial instruments with a number of major financial institutions to minimize counterparty credit risk.
Derivatives designated as hedging instruments

Interest rate swaps are used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps are designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, convert a portion of the variable-rate debt to fixed-rate debt. At September 28, 2013, we had interest rate swaps with notional amounts totaling $120,000. The interest rate swaps effectively convert this amount of variable-rate debt to fixed-rate debt at 1.8%, including the applicable margin of 138 basis points as of September 28, 2013. The interest will revert back to variable rates based on LIBOR plus the applicable margin upon the maturity of the interest rate swaps on January 15, 2015 and January 15, 2016.
We use foreign currency forward contracts as cash flow hedges to effectively fix the exchange rates on future payments and revenue. To mitigate exposure in movements between various currencies, primarily the Philippine peso, we had outstanding foreign currency forwards with notional amounts of $46,505 at September 28, 2013. These contracts mature at various times through September 24, 2015.
These interest rate swaps and foreign currency forwards are recorded on the consolidated balance sheet at fair value and the related gains or losses are deferred in shareholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (AOCI). These deferred gains and losses are reclassified into expense during the periods in which the related payments or receipts affect earnings. However, to the extent the interest rate swaps and foreign currency forwards are not perfectly effective in offsetting the change in the value of the payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was not material in 2013, 2012 or 2011.
Activity in Accumulated Other Comprehensive Income (Loss) (AOCI) related to these derivatives is summarized below: 

 
September 28,
2013
 
September 29,
2012
Balance at beginning of period
 
$
220

 
$
(165
)
Net deferral in AOCI of derivatives:
 

 

Net increase (decrease) in fair value of derivatives
 
(1,937
)
 
783

Tax effect
 
827

 
(318
)
 
 
(1,110
)
 
465

Net reclassification from AOCI into earnings:
 
 
 
 
Reclassification from AOCI into earnings
 
(217
)
 
(161
)
Tax effect
 
72

 
81

 
 
(145
)
 
(80
)
Balance at end of period
 
$
(1,035
)
 
$
220


 
Activity and classification of derivatives are as follows:
 
  
Statement of earnings
classification
 
Net deferral in AOCI of derivatives -
effective portion
  
  
 
2013
 
2012
Foreign currency forwards
Sales
 
$
182

 
$
—

Foreign currency forwards
Cost of sales
 
(1,833
)
 
783

Interest rate swaps
Interest expense
 
(286
)
 
—

Net gain (loss)
 
 
$
(1,937
)
 
$
783


 
  
Statement of earnings
classification
 
Net reclassification from AOCI into
earnings - effective portion
  
  
 
2013
 
2012
Foreign currency forwards
Sales
 
$
23

 
$
—

Foreign currency forwards
Cost of sales
 
361

 
228

Interest rate swaps
Interest expense
 
(167
)
 
(67
)
Net gain
 
 
$
217

 
$
161


Derivatives not designated as hedging instruments
We also have foreign currency exposure on balances, primarily intercompany, that are denominated in a foreign currency and are adjusted to current values using period-end exchange rates. The resulting gains or losses are recorded in the consolidated statements of earnings. To minimize foreign currency exposure, we have foreign currency forwards with notional amounts of $228,457 at September 28, 2013. The foreign currency forwards are recorded in the consolidated balance sheets at fair value and resulting gains or losses are recorded in the consolidated statements of earnings. We recorded a net gain of $2,249 in 2013 and a net loss of $4,192 in 2012 on the foreign currency forwards. These losses are included in other expense and generally offset the gains from the foreign currency adjustments on the intercompany balances that are also included in other income or expense.

Summary of derivatives
The fair value and classification of derivatives is summarized as follows:
 
 
 
 
September 28,
2013
 
September 29, 2012
Derivatives designated as hedging instruments:
 
 
 
 
 
Foreign currency forwards
Other current assets
 
$
217

 
$
467

Foreign currency forwards
Other assets
 
100

 
32

 
Total assets
 
$
317

 
$
499

Foreign currency forwards
Other accrued liabilities
 
$
1,342

 
$
41

Foreign currency forwards
Other long-term liabilities
 
636

 
40

Interest rate swaps
Other accrued liabilities
 
85

 
—

Interest rate swaps
Other long-term liabilities
 
42

 
—

 
Total liabilities
 
$
2,105

 
$
81

Derivatives not designated as hedging instruments:
 
 
 
 
 
Foreign currency forwards
Other current assets
 
$
68

 
$
1,456

 
Total assets
 
$
68

 
$
1,456

Foreign currency forwards
Other accrued liabilities
 
$
956

 
$
2,549

 
Total liabilities
 
$
956

 
$
2,549