XML 85 R15.htm IDEA: XBRL DOCUMENT v3.3.0.814
DERIVATIVE FINANCIAL INSTRUMENT (Notes)
 12 Months Ended
Oct. 03, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative Instruments, Gain (Loss) [Table Text Block]
The effect of derivative instruments designated as cash flow hedges in our Consolidated Statements of Income for the year ended October 3, 2015 and September 27, 2014 was as follows:
(in thousands)
Fiscal
 
2015
 
2014
Foreign exchange forward contract in cash flow hedging relationships:
 
 
 
Net (loss)/ gain recognized in OCI, net of tax(1)
$
(1,008
)
 
$
114

Net (loss)/ gain reclassified from accumulated OCI into income, net of tax(2)
$
(1,008
)
 
$
114

Net gain recognized in income(3)
$
—

 
$
—

(1)Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”).
(2)Effective portion classified as selling, general and administrative expense.
(3)Ineffective portion and amount excluded from effectiveness testing classified in selling, general and administrative expense.
Derivative Instruments and Hedging Activities Disclosure [Text Block]
DERIVATIVE FINANCIAL INSTRUMENTS
The Company’s international operations are exposed to changes in foreign exchange rates due to transactions denominated in currencies other than U.S. dollars. Most of the Company’s revenue and cost of materials are transacted in U.S. dollars. However, a significant amount of the Company’s operating expenses are denominated in foreign currencies, primarily in Singapore.
The foreign currency exposure of our operating expenses are generally hedged with foreign exchange forward contracts. The Company’s foreign exchange risk management programs include using foreign exchange forward contracts with cash flow hedge accounting designation to hedge exposures to the variability in the U.S.-dollar equivalent of forecasted non-U.S.-dollar-denominated operating expenses. These instruments generally mature within 6 months. For these derivatives, we report the after-tax gain or loss from the effective portion of the hedge as a component of accumulated other comprehensive income (loss), and we reclassify it into earnings in the same period or periods in which the hedged transaction affects earnings and in the same line item on the consolidated statements of income as the impact of the hedged transaction.
There were no outstanding derivative instruments as of October 3, 2015 and September 27, 2014.
The effect of derivative instruments designated as cash flow hedges in our Consolidated Statements of Income for the year ended October 3, 2015 and September 27, 2014 was as follows:
(in thousands)
Fiscal
 
2015
 
2014
Foreign exchange forward contract in cash flow hedging relationships:
 
 
 
Net (loss)/ gain recognized in OCI, net of tax(1)
$
(1,008
)
 
$
114

Net (loss)/ gain reclassified from accumulated OCI into income, net of tax(2)
$
(1,008
)
 
$
114

Net gain recognized in income(3)
$
—

 
$
—

(1)Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”).
(2)Effective portion classified as selling, general and administrative expense.
(3)Ineffective portion and amount excluded from effectiveness testing classified in selling, general and administrative expense.