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FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended
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Jun. 29, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES | FINANCIAL DERIVATIVES AND HEDGING ACTIVITIES As part of the Company’s overall risk management practices, the Company enters into financial derivatives, which include interest rate swaps designed as cash flow hedges, to hedge the LIBOR-based, floating interest rate on its debt. The Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The effective portion of the gain or loss on derivative instruments designated and qualifying for cash flow hedge accounting is deferred in other comprehensive income. Any ineffectiveness in these designated hedging relationships is recognized in current period earnings. The changes in fair value for all trades that are not designated for hedge accounting are recognized in current period earnings. Deferred gains or losses from designated cash flow hedges are reclassified into earnings in the period that the hedged interest expense effect earnings. The effectiveness of cash flow hedges is assessed at inception and quarterly thereafter. If the instrument were to no longer qualify for hedge accounting due to it becoming probable that the originally-forecasted hedged transactions will not occur, then hedge accounting would cease and the related change in fair value of the ineffective portion of the derivative instrument would be reclassified from accumulated other comprehensive income (loss) and recognized in earnings. The Company does not offset fair value amounts recognized for derivative instruments in its balance sheet for presentation purposes. Credit risk related to derivative transactions reflects the risk that a party to the transaction could fail to meet its obligation under the derivative contracts. Therefore, the Company’s exposure to the counterparty’s credit risk is generally limited to the amounts, if any, by which the counterparty’s obligations to the Company exceed the Company’s obligations to the counterparty. The Company’s policy is to enter into contracts only with financial institutions which meet certain minimum credit ratings to help mitigate counterparty credit risk. Derivatives Designated as Hedging Instruments - Cash Flow Hedges The Company uses interest rate swap contracts as cash flow hedges to manage its exposure to fluctuations in LIBOR interest rates. Interest rate swap contracts that hedge variable rate debt effectively fix the LIBOR component of their interest rates for a specific period of time. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is deferred as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets and is subsequently reclassified into earnings in the period that the hedged interest expense effects earnings. The ineffective portion of the changes in fair value of derivatives designated as cash flow hedges are recognized directly to earnings and reflected in the accompanying condensed consolidated statements of earnings. No ineffectiveness was reported in earnings for the period ending June 29, 2018. As of June 29, 2018, the Company had the following outstanding derivatives designated as hedging instruments:
(In millions, except for number of instruments) |  | Number of Instruments |  | Notional Value
Interest Rate Swap Contracts |  | 6 |  |  | $ | 281.3 |
These contracts have maturities of four years or less. The following table summarizes the amount of income recognized from derivative instruments for the periods indicated and the line items in the accompanying statements of operations where the results are recorded for cash flow hedges:
| Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Three months ended |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Three months ended |  | Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) |  | Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Three months ended
(In millions) | 2018 |  | 2017 |  |  | 2018 |  | 2017 |  |  | 2018 |  | 2017
Interest Rate Swap Contracts | $ | 1.2 |  |  | $ | 0.6 |  |  | Interest expense |  | $ | 0.2 |  |  | $ | — |  |  | Interest expense |  | $ | — |  |  | $ | — |
| Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Six months ended |  | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Six months ended |  | Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) |  | Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) Six months ended
(In millions) | 2018 |  | 2017 |  |  | 2018 |  | 2017 |  |  | 2018 |  | 2017
Interest Rate Swap Contracts | $ | 6.1 |  |  | $ | 0.6 |  |  | Interest expense |  | $ | (0.2 | ) |  | $ | — |  |  | Interest expense |  | $ | — |  |  | $ | — |
The Company expects that approximately $1.8 million recorded as a component of accumulated other comprehensive income (loss) will be realized in the statements of earnings over the next 12 months and the amount will vary depending on interest rates. These derivative instruments are subject to master netting agreements giving effect to rights of offset with each counterparty. The following table summarizes the fair values of derivative instruments as of the periods indicated and the line items in the accompanying consolidated balance sheets where the instruments are recorded:
|  | Derivative Assets |  | Derivative Liabilities
(In millions) |  |  |  | June 29, 2018 |  | September 29, 2017 |  |  |  | June 29, 2018 |  | September 29, 2017
Derivatives designated as cash flow hedges |  | Balance sheet location |  |  |  |  |  | Balance sheet location |  |  |  |
Interest rate swap contracts |  | Other current assets |  | $ | 1.8 |  |  | $ | — |  |  | Other current liabilities |  | $ | — |  |  | $ | (0.6 | )
Interest rate swap contracts |  | Other non-current assets |  | 5.3 |  |  | 1.6 |  |  | Other non-current liabilities |  | — |  |  | — |
|  |  |  | $ | 7.1 |  |  | $ | 1.6 |  |  |  |  | $ | — |  |  | $ | (0.6 | )

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- References No definition available. + Details
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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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