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DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended
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Mar. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | Derivative Financial Instruments As of March 30, 2019, the Company had outstanding foreign currency forward contracts with a total notional amount of $33.6 million. The maturity dates for these contracts extend through June 2020. For the three months ended March 30, 2019, the Company did not enter into any foreign currency forward contracts and settled $7.0 million of such contracts. During the same period of the previous year, the Company did not enter into any foreign currency forward contracts and settled $5.7 million of such contracts. For the nine months ended March 30, 2019, the Company entered into foreign currency forward contracts of $6.3 million and settled $19.0 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 $22.3 million of such contracts. As of March 30, 2019, the aggregate notional amount of the Company’s outstanding foreign currency contracts along with their unrealized gains are expected to mature as summarized below (in thousands):
Quarter Ending |  | Notional Contracts in MXN |  | Notional Contracts in USD |  | Estimated Fair Value
June 29, 2019 |  | $ | 142,947 |  |  | $ | 6,828 |  |  | $ | 483 |
September 28, 2019 |  | $ | 148,468 |  |  | $ | 6,740 |  |  | $ | 741 |
December 28, 2019 |  | $ | 152,613 |  |  | $ | 7,187 |  |  | $ | 399 |
March 28, 2020 |  | $ | 146,613 |  |  | $ | 6,553 |  |  | $ | 631 |
June 27, 2020 |  | $ | 138,213 |  |  | $ | 6,257 |  |  | $ | 430 |
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 March 30, 2019 and June 30, 2018 (in thousands):
|  |  | March 30, 2019 |  | June 30, 2018
Derivatives Designated as Hedging Instruments | Balance Sheet Location |  | Fair Value |  | Fair Value
Foreign currency forward contracts & swaps | Other current assets |  | $ | 2,254 |  |  | $ | 23 |
Foreign currency forward contracts & swaps | Other long-term assets |  | $ | 430 |  |  | $ | 477 |
Foreign currency forward contracts & swaps | Other current liabilities |  | $ | — |  |  | $ | (1,618 | )
Foreign currency forward contracts & swaps | Other long-term liabilities |  | $ | — |  |  | $ | (58 | )
Interest rate swap | Other current assets |  | $ | 8 |  |  | $ | 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 March 30, 2019 and March 31, 2018, respectively (in thousands):
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of December 29, 2018 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of March 30, 2019
Forward contracts & swaps | Cost of sales |  | $ | 1,178 |  |  | $ | 1,059 |  |  | $ | (194 | ) |  | $ | 2,043 |
Interest rate swap | Interest expense |  | 13 |  |  | 1 |  |  | (7 | ) |  | 7 |
Total |  |  | $ | 1,191 |  |  | $ | 1,060 |  |  | $ | (201 | ) |  | $ | 2,050 |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of December 30, 2017 |  | Effective Portion Recorded In AOCI (1) |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of March 31, 2018
Forward contracts & swaps | Cost of sales |  | $ | (2,972 | ) |  | $ | 2,830 |  |  | $ | 897 |  |  | $ | 755 |
Interest rate swap | Interest expense |  | (16 | ) |  | 13 |  |  | 14 |  |  | 11 |
Total |  |  | $ | (2,988 | ) |  | $ | 2,843 |  |  | $ | 911 |  |  | $ | 766 |
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the nine months ended March 30, 2019 and March 31, 2018, 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 |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of March 30, 2019
Forward contracts & swaps | Cost of sales |  | $ | (988 | ) |  | $ | 2,308 |  |  | $ | 723 |  |  | $ | 2,043 |
Interest rate swap | Interest expense |  | 19 |  |  | 2 |  |  | (14 | ) |  | 7 |
Total |  |  | $ | (969 | ) |  | $ | 2,310 |  |  | $ | 709 |  |  | $ | 2,050 |
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 (1) |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of March 31, 2018
Forward contracts & swaps | Cost of sales |  | $ | (2,707 | ) |  | $ | 39 |  |  | $ | 3,423 |  |  | $ | 755 |
Interest rate swap | Interest expense |  | (68 | ) |  | 12 |  |  | 67 |  |  | 11 |
Total |  |  | $ | (2,775 | ) |  | $ | 51 |  |  | $ | 3,490 |  |  | $ | 766 |
(1) The effective portion recorded in AOCI for the three and nine months ended March 31, 2018 is net of the adoption of ASU 2018-02 which required a reclassification from AOCI to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. As of March 30, 2019, the net amount of unrealized gain expected to be reclassified into earnings within the next 12 months is approximately $1.8 million. As of March 30, 2019, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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