XML 26 R11.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Derivatives and Fair Value Measurements | 12 Months Ended
--- | ---
Oct. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Fair Value Measurements | Derivatives and Fair Value Measurements All derivatives are recognized in the accompanying Consolidated Balance Sheets at their estimated fair value. The Company uses derivatives to manage the variability of foreign currency obligations. The Company has cash flow hedges related to forecasted foreign currency obligations, in addition to non-designated hedges to manage foreign currency exposures associated with certain foreign currency denominated assets and liabilities. The Company does not enter into derivatives for speculative purposes. The Company designates some foreign currency exchange contracts as cash flow hedges of forecasted foreign currency expenses. Changes in the fair value of the derivatives that qualify as cash flow hedges are recorded in "Accumulated other comprehensive loss" in the accompanying Consolidated Bala nce Sheets until earnings are affected by the variability of the cash flows. In the next twelve months, the Company estimates t hat $6.0 million of unrealized losses, net of tax, related to cash flow hedges will be reclassified from other comprehensive income (loss) into earnings. Changes in the fair value of the non-designated derivatives related to recognized foreign currency denominated assets and liabilities are recorded in "Miscellaneous, net" in the accompanying Consolidated Statements of Comprehensive Income. The Company enters into forward currency exchange contracts for its operations in Malaysia and Mexico on a rolling basis. The Company had cash flow hedges outstanding with a notional value of $143.2 million as of October 1, 2022, and a notional value of $107.4 million as of October 2, 2021. These forward currency contracts fix the exchange rates for the settlement of future foreign currency obligations that have yet to be realized. The total fair value of the forward currency exchange contracts was a $6.0 million liability as of October 1, 2022, and a $1.0 million liability as of October 2, 2021. The Company had additional forward currency exchange contracts outstanding as of October 1, 2022, with a notional value of $60.1 million; there were $38.6 million such contracts outstanding as of October 2, 2021. The Company did not designate these derivative instruments as hedging instruments. The net settlement amount (fair value) related to these contracts is recorded on the Consolidated Balance Sheets as either a current or long-term asset or liability, depending on the term, and as an element of "Miscellaneous, net" in the Consolidated Statements of Comprehensive Income. The total fair value of these derivatives was a $0.3 million asset as of October 1, 2022, and a $0.2 million liability as of October 2, 2021. The tables below present information regarding the fair values of derivative instruments (as defined in Note 1, "Description of Business and Significant Accounting Policies") and the effects of derivative instruments on the Company’s Consolidated Financial Statements:
Fair Values of Derivative Instruments (in thousands)
|  | Derivative Assets |  | Derivative Liabilities
|  |  |  | October 1, 2022 |  | October 2, 2021 |  |  |  | October 1, 2022 |  | October 2, 2021
Derivatives designated as hedging instruments |  | Balance sheet classification |  | Fair Value |  | Fair Value |  | Balance sheet classification |  | Fair Value |  | Fair Value
Foreign currency forward contracts |  | Prepaid expenses and other |  | $ | 715 |  |  | $ | 76 |  |  | Other accrued liabilities |  | $ | 6,747 |  |  | $ | 1,119 |
Fair Values of Derivative Instruments (in thousands)
|  | Derivative Assets |  | Derivative Liabilities
|  |  |  | October 1, 2022 |  | October 2, 2021 |  |  |  | October 1, 2022 |  | October 2, 2021
Derivatives not designated as hedging instruments |  | Balance sheet classification |  | Fair Value |  | Fair Value |  | Balance sheet classification |  | Fair Value |  | Fair Value
Foreign currency forward contracts |  | Prepaid expenses and other |  | $ | 1,555 |  |  | $ | 133 |  |  | Other accrued liabilities |  | $ | 1,249 |  |  | $ | 356 |
The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss ("OCL") (in thousands)
for the Twelve Months Ended
Derivatives in cash flow hedging relationships |  | Amount of (Loss) Gain Recognized in OCL on Derivatives
| October 1, 2022 |  | October 2, 2021 |  | October 3, 2020
Foreign currency forward contracts |  | $ | (7,637) |  |  | $ | 1,238 |  |  | $ | 446 |
Derivative Impact on (Loss) Gain Recognized in Consolidated Statements of Comprehensive Income (in thousands)
for the Twelve Months Ended
Derivatives in cash flow hedging relationships |  | Classification of (Loss) Gain Reclassified from Accumulated OCL into Income |  | Amount of (Loss) Gain Reclassified from Accumulated OCL into Income
|  | October 1, 2022 |  | October 2, 2021 |  | October 3, 2020
Foreign currency forward contracts |  | Cost of sales |  | $ | (2,459) |  |  | $ | 3,205 |  |  | $ | (1,278) |
Foreign currency forward contracts |  | Selling and administrative expenses |  | $ | (189) |  |  | $ | 265 |  |  | $ | (107) |
Derivatives not designated as hedging instruments |  | Location of (Loss) Gain Recognized on Derivatives in Income |  | Amount of (Loss) Gain on Derivatives Recognized in Income
|  | October 1, 2022 |  | October 2, 2021 |  | October 3, 2020
Foreign currency forward contracts |  | Miscellaneous, net |  | $ | (1,181) |  |  | $ | 98 |  |  | $ | (330) |
Fair Value Measurements: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are: Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. The following table lists the fair values of assets of the Company’s derivatives as of October 1, 2022 and October 2, 2021, by input level:
Fair Value Measurements Using Input Levels Liability (in thousands)
Fiscal year ended October 1, 2022 |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Derivatives |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | 5,726 |  |  | $ | — |  |  | $ | 5,726 |
Fiscal year ended October 2, 2021 |  |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | 1,266 |  |  | $ | — |  |  | $ | 1,266 |
The fair value of foreign currency forward contracts is determined using a market approach, which includes obtaining directly or indirectly observable values from third parties active in the relevant markets. Inputs in the fair value of the foreign currency forward contracts include prevailing forward and spot prices for currency.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI https://asc.fasb.org/topic&trid=2155941 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativesAndFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration