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DERIVATIVES | 3 Months Ended
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Dec. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | DERIVATIVES Derivative financial instruments are principally used in the management of foreign currency risk. The Company does not hold or issue derivative financial instruments for speculative or trading purposes. Cash Flow Hedges. The Company periodically enters into forward foreign exchange contracts to hedge the cash flow risk from the forecasted purchase and sale of inventory denominated in foreign currencies, and designated as a cash flow hedge. These obligations generally require the Company to exchange foreign currencies for Australian Dollars, Canadian Dollars, Euros, Japanese Yen, Mexican Pesos, Pound Sterling, or U.S. Dollars. The fair value of the related hedge is recorded in Accumulated Other Comprehensive Income ("AOCI") and as a derivative asset or liability, as applicable, until the purchase or sale is recognized, or otherwise determined to be ineffective or discontinued, at which point the fair value of the related hedge is reclassified to earnings. Derivative Instruments Not Designated as Hedge. The Company periodically enters into forward contracts to economically hedge a portion of risk from intercompany balances denominated in foreign currencies. These obligations generally require the Company to exchange foreign currencies for, among others, Canadian Dollars, Colombian Peso, Euros, Czech Koruna, Japanese Yen, Mexican Peso, Polish Zloty, Pound Sterling, Singapore Dollar, Swiss Franc, Turkish Lira, or U.S. Dollars. These foreign exchange contracts are fair value hedges of related intercompany balances with the gain or loss on the derivative instruments recorded in earnings offsetting the change in value of the related intercompany balance. The following summarizes outstanding notional balances and maturities of derivative instruments as of December 29, 2024 and September 30, 2024.
|  | December 29, 2024 |  | September 30, 2024
(in millions) |  | Notional Balance |  | Maturities thru |  | Notional Balance |  | Maturities thru
Foreign exchange contracts - cash flow hedges |  | $ | 314.0 |  |  | June 2026 |  | $ | 351.7 |  |  | June 2026
Foreign exchange contracts - not designated as hedge |  | $ | 480.5 |  |  | January 2025 |  | $ | 466.9 |  |  | October 2024
The following summarizes the fair value and location of outstanding derivative instruments in the Condensed Consolidated Statements of Financial Position.
(in millions) |  | Line Item |  | December 29, 2024 |  | September 30, 2024
Derivative Assets |  |  |  |  |  |
Foreign exchange contracts – cash flow hedges |  | Other receivables |  | $ | 4.3 |  |  | $ | 1.4 |
Foreign exchange contracts – cash flow hedges |  | Deferred charges and other |  | 0.8 |  |  | 0.1 |
Foreign exchange contracts – not designated as hedge |  | Other receivables |  | 0.4 |  |  | 0.3 |
Total Derivative Assets |  |  |  | $ | 5.5 |  |  | $ | 1.8 |
Derivative Liabilities |  |  |  |  |  |
Foreign exchange contracts – cash flow hedges |  | Accounts payable |  | $ | 0.7 |  |  | $ | 11.5 |
Foreign exchange contracts – cash flow hedges |  | Other long term liabilities |  | — |  |  | 1.4 |
Foreign exchange contracts – not designated as hedge |  | Accounts payable |  | 2.8 |  |  | 2.4 |
Total Derivative Liabilities |  |  |  | $ | 3.5 |  |  | $ | 15.3 |
The fair value for derivative instruments excludes collateral or standby letter of credit associated with derivative instruments, of which there were none as of December 29, 2024 and September 30, 2024. The Company is not a party to derivative agreements that require collateral to be posted prior to settlement. The following summarizes the pre-tax gain (loss) from derivative instruments and location in the Condensed Consolidated Statements of Income for the three month periods ended December 29, 2024 and December 31, 2023, respectively.
(in millions) |  | Line Item |  | December 29, 2024 |  | December 31, 2023 |  |  |  |
Foreign exchange contracts - cash flow hedges |  | Net sales |  | $ | — |  |  | $ | 0.1 |  |  |  |  |
Foreign exchange contracts - cash flow hedges |  | Cost of goods sold |  | (0.7) |  |  | (5.2) |  |  |  |  |
Foreign exchange contracts - not designated as hedge |  | Other non-operating expense, net |  | (3.3) |  |  | 13.1 |  |  |  |  |
There was no gain or loss realized from cash flow hedges due to the ineffectiveness or discontinuation of the cash flow hedge because it was not considered probable that the original forecasted transaction would not occur. See Note 11 - Accumulated Other Comprehensive Income for unrealized gains and losses initially recognized as other comprehensive income and the accumulated unrealized gain (loss) associated with cash flow hedges recognized in AOCI. As of December 29, 2024, the net gain estimated to be reclassified from AOCI into earnings associated with cash flow hedges over the next 12 months is $2.6 million, net of tax.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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