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DERIVATIVE FINANCIAL INSTRUMENTS
 6 Months Ended
Dec. 26, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS Derivative Financial Instruments
As of December 26, 2020, the Company had outstanding foreign currency forward contracts with a total notional amount of $23.8 million. The maturity dates for these contracts extend through December 2021. For the three months ended December 26, 2020, the Company did not enter into any foreign currency forward contracts and settled $6.3 million of contracts. During the same period of the previous year, the Company did not enter into any foreign currency forward contracts and settled $7.2 million of contracts.
For the six months ended December 26, 2020, the Company did not enter into any foreign currency forward contracts and settled $13.0 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 $13.9 million of such contracts.
As of December 26, 2020, the aggregate notional amount of the Company’s outstanding foreign currency contracts along with their unrealized gains (losses) are expected to mature as summarized below (in thousands):
Quarter EndingNotional Contracts in MXNNotional Contracts in USDEstimated Fair Value
April 3, 2021$148,253 $6,682 $750 
July 3, 2021$144,725 $6,446 $671 
October 2, 2021$146,373 $5,502 $1,650 
January 1, 2022$137,973 $5,129 $1,542 
On November 6, 2019, the Company entered into an interest rate swap contract with an effective date of November 6, 2019 and a termination date of September 30, 2022, related to the borrowings outstanding under the term loan with Wells Fargo Bank. This interest rate swap paid the Company variable interest at the one month LIBOR rate, and the Company paid the counter party a fixed interest rate. The fixed interest rate for the contract was 1.70% that replaced the one month LIBOR rate component of our contractual interest to be paid to Wells Fargo Bank 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 qualified as a cash flow hedge. This interest rate swap contract was terminated on August 14, 2020 when the Company entered into a loan and security agreement with Bank of America. At date of termination this interest rate swap was in a liability position of $148,400, which will be amortized to interest expense over the original term of the swap.
On November 6, 2019, the Company entered into an interest rate swap contract with an effective date of November 6, 2019 and a termination date of November 1, 2023, related to the borrowings outstanding under the line of credit with Wells Fargo Bank. This interest rate swap paid the Company variable interest at the one month LIBOR rate, and the Company paid the counter party a fixed interest rate. The fixed interest rate for the contract was 1.67% that replaced the one month LIBOR rate component of our contractual interest to be paid to Wells Fargo Bank as part of our line of credit. Based on the terms of the interest rate swap contract and the underlying borrowings outstanding under the line of credit, the interest rate contract was determined to be effective, and thus qualified as a cash flow hedge. This interest rate swap contract was terminated on August 14, 2020 when the Company entered into a loan and security agreement with Bank of America. At date of termination this interest rate swap was in a liability position of $776,500, which will be amortized to interest expense over the original term of the swap.
The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of December 26, 2020 and June 27, 2020 (in thousands):
December 26, 2020June 27, 2020
Derivatives Designated as Hedging InstrumentsBalance Sheet LocationFair ValueFair Value
Foreign currency forward contractsOther current assets$4,613 $— 
Foreign currency forward contractsOther long-term assets$— $1,097 
Foreign currency forward contractsOther current liabilities$— $(1,960)
Foreign currency forward contractsOther long-term liabilities$— $(17)
Interest rate swapOther current liabilities$— $(347)
Interest rate swapOther long-term liabilities$— $(610)

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 26, 2020 and December 28, 2019, respectively (in thousands):
Derivatives Designated as Hedging InstrumentsClassification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)AOCI Balance
as of
September 26, 2020		Effective
Portion
Recorded In
AOCI		Effective Portion
Reclassified From
AOCI Into
Income		AOCI Balance
as of
December 26, 2020
Forward contractsCost of sales$643 $2,958 $(108)$3,493 
Interest rate swapInterest expense(875)— 76 (799)
Total$(232)$2,958 $(32)$2,694 
Derivatives Designated as Hedging InstrumentsClassification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)AOCI Balance
as of
September 28, 2019		Effective
Portion
Recorded In
AOCI		Effective Portion
Reclassified From
AOCI Into
Income		AOCI Balance
as of
December 28, 2019
Forward contractsCost of sales$1,479 $1,533 $(683)$2,329 
Interest rate swapInterest expense— (71)(1)(72)
Total$1,479 $1,462 $(684)$2,257 
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the six months ended December 26, 2020 and December 28, 2019, respectively (in thousands):
Derivatives Designated as Hedging InstrumentsClassification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)AOCI Balance
as of
June 27, 2020		Effective
Portion
Recorded In
AOCI		Effective Portion
Reclassified From
AOCI Into
Income		AOCI Balance
as of
December 26, 2020
Forward contractsCost of sales$(759)$4,001 $251 $3,493 
Interest rate swapInterest expense(741)(223)165 (799)
Total$(1,500)$3,778 $416 $2,694 
Derivatives Designated as Hedging InstrumentsClassification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)AOCI Balance
as of
June 29, 2019		Effective
Portion
Recorded In
AOCI		Effective Portion
Reclassified From
AOCI Into
Income		AOCI Balance
as of
December 28, 2019
Forward contractsCost of sales$2,424 $1,492 $(1,587)$2,329 
Interest rate swapInterest expense2 (71)(3)(72)
Total$2,426 $1,421 $(1,590)$2,257 
As of December 26, 2020, the net amount of unrealized gain expected to be reclassified into earnings within the next 12 months is approximately $3.6 million. As of December 26, 2020, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.