XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.10.0.1

DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended
--- | ---
Dec. 29, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | of December 29, 2018, the Company had outstanding foreign currency forward contracts and swaps with a total notional amount of $40.5 million. The maturity dates for these contracts and swaps extend through June 2020. For the three months ended December 29, 2018, the Company entered into foreign currency forward contracts of $6.3 million and settled $6.7 million of such contracts. During the same period of the previous year, the Company entered into foreign currency forward contracts of $7.2 million and settled $11.2 million of such contracts. For the six months ended December 29, 2018, the Company entered into foreign currency forward contracts of $6.3 million and settled $12.0 million of such contracts. During the same period of the previous year, the Company entered into foreign currency forward contracts of $7.2 million and settled $16.6 million of such contracts. As of December 29, 2018, the aggregate notional amount of the Company’s outstanding foreign currency contracts and swaps along with their unrealized gains are expected to mature as summarized below (in thousands):
Quarter Ending |  | Notional Contracts and Swaps in MXN |  | Notional Contracts and Swaps in USD |  | Estimated Fair Value
March 30, 2019 |  | $ | 137,944 |  |  | $ | 6,979 |  |  | $ | 1 |
June 29, 2019 |  | $ | 142,947 |  |  | $ | 6,828 |  |  | $ | 278 |
September 28, 2019 |  | $ | 148,468 |  |  | $ | 6,740 |  |  | $ | 521 |
December 28, 2019 |  | $ | 152,613 |  |  | $ | 7,187 |  |  | $ | 170 |
March 28, 2020 |  | $ | 146,613 |  |  | $ | 6,553 |  |  | $ | 404 |
June 27, 2020 |  | $ | 138,213 |  |  | $ | 6,257 |  |  | $ | 209 |
On October 1, 2014, the Company entered into an interest rate swap contract with an effective date of September 1, 2015 and a termination date of September 3, 2019, related to the borrowings outstanding under the term loan. This interest rate swap pays the Company variable interest at the one month LIBOR rate, and the Company pays the counter party a fixed interest rate. The fixed interest rate for the contract is 1.97% that replaces the one month LIBOR rate component of our contractual interest to be paid to WFB as part of our term loan. Based on the terms of the interest rate swap contract and the underlying borrowings outstanding under the term loan, the interest rate contract was determined to be effective, and thus qualifies as a cash flow hedge. The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of December 29, 2018 and June 30, 2018 (in thousands):
|  |  | December 29, 2018 |  | June 30, 2018
Derivatives Designated as Hedging Instruments | Balance Sheet Location |  | Fair Value |  | Fair Value
Foreign currency forward contracts & swaps | Other current assets |  | $ | 981 |  |  | $ | 23 |
Foreign currency forward contracts & swaps | Other long-term assets |  | $ | 613 |  |  | $ | 477 |
Foreign currency forward contracts & swaps | Other current liabilities |  | $ | (11 | ) |  | $ | (1,618 | )
Foreign currency forward contracts & swaps | Other long-term liabilities |  | $ | — |  |  | $ | (58 | )
Interest rate swap | Other current assets |  | $ | 16 |  |  | $ | 20 |
Interest rate swap | Other long-term assets |  | $ | — |  |  | $ | 4 |
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended December 29, 2018 and December 30, 2017, respectively (in thousands):
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of September 29, 2018 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of December 29, 2018
Forward contracts & swaps | Cost of sales |  | $ | 2,061 |  |  | $ | (1,266 | ) |  | $ | 383 |  |  | $ | 1,178 |
Interest rate swap | Interest expense |  | 19 |  |  | (1 | ) |  | (5 | ) |  | 13 |
Total |  |  | $ | 2,080 |  |  | $ | (1,267 | ) |  | $ | 378 |  |  | $ | 1,191 |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of September 30, 2017 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of December 30, 2017
Forward contracts & swaps | Cost of sales |  | $ | (1,715 | ) |  | $ | (2,669 | ) |  | $ | 1,412 |  |  | $ | (2,972 | )
Interest rate swap | Interest expense |  | (48 | ) |  | 8 |  |  | 24 |  |  | (16 | )
Total |  |  | $ | (1,763 | ) |  | $ | (2,661 | ) |  | $ | 1,436 |  |  | $ | (2,988 | )
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the six months ended December 29, 2018 and December 30, 2017, respectively (in thousands):
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of June 30, 2018 |  | Effective Portion Recorded In AOCI (1) |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of December 29, 2018
Forward contracts & swaps | Cost of sales |  | $ | (988 | ) |  | $ | 1,249 |  |  | $ | 917 |  |  | $ | 1,178 |
Interest rate swap | Interest expense |  | 19 |  |  | 1 |  |  | (7 | ) |  | 13 |
Total |  |  | $ | (969 | ) |  | $ | 1,250 |  |  | $ | 910 |  |  | $ | 1,191 |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of July 1, 2017 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of December 30, 2017
Forward contracts & swaps | Cost of sales |  | $ | (2,707 | ) |  | $ | (2,791 | ) |  | $ | 2,526 |  |  | $ | (2,972 | )
Interest rate swap | Interest expense |  | (68 | ) |  | (1 | ) |  | 53 |  |  | (16 | )
Total |  |  | $ | (2,775 | ) |  | $ | (2,792 | ) |  | $ | 2,579 |  |  | $ | (2,988 | )
As of December 29, 2018, the net amount of unrealized gain expected to be reclassified into earnings within the next 12 months is approximately $0.8 million. As of December 29, 2018, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.

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 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration