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DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended
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Jun. 28, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS A significant portion of our operations are in foreign locations, which results in transactions occurring in currencies other than the U.S. Dollar. As a part of our risk management strategy, we use Mexican Peso forward contracts to hedge foreign currency fluctuations for a portion of our Mexican Peso denominated expenses. As of June 28, 2025, the Company had outstanding foreign currency forward contracts with a total notional amount of $12.9 million. The maturity dates for these contracts extend through December 2025. For the three months ended June 28, 2025, the Company did not enter into any foreign currency forward contracts and settled $8.0 million of such contracts. During the same period of the previous year, the Company entered $12.5 million of foreign currency forward contracts and did not settle any of such contracts. For the twelve months ended June 28, 2025, the Company entered into $29.0 million of foreign currency forward contracts and settled $28.6 million of such contracts. During the same period of the previous year, the Company entered into $19.0 million of foreign currency forward contracts and settled $6.5 million of such contracts. Changes in the fair value of the forward contracts are recognized as a component of OCI and will be recognized in cost of sales when the hedged item affects earnings. The amount of net gains expected to be reclassified into earnings in the next 6 months is $1.1 million. 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 contract was terminated on August 14, 2020 when the Company entered into the Loan Agreement with Bank of America. On the date of termination this interest rate swap was in a liability position of $776,500, which has been amortized to interest expense over the original term of the swap. The following table summarizes the fair value of the derivative instruments in the Consolidated Balance Sheets as of June 28, 2025 and June 29, 2024 (in thousands):
|  |  |  | Fair Value
Derivatives designated as hedging instruments under Subtopic 815-20 |  | Balance Sheet Location |  | June 28, 2025 |  | June 29, 2024
Foreign currency forward contracts |  | Other current assets |  | $ | 1,330 |  |  | $ | — |
Foreign currency forward contracts |  | Other current liabilities |  | $ | — |  |  | $ | (277) |
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the fiscal year 2025 and 2024, 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 29, 2024 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of June 28, 2025
Forward contracts | Cost of sales | 215 |  |  | (2,803) |  |  | 1,559 |  |  | (1,029) |
Total |  | $ | 215 |  |  | (2,803) |  |  | 1,559 |  |  | (1,029) |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of July 1, 2023 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of June 29, 2024
Forward contracts | Cost of sales |  | $ | — |  |  | $ | 287 |  |  | $ | (72) |  |  | $ | 215 |
Interest rate swap | Interest expense |  | (97) |  |  | — |  |  | 97 |  |  | — |
Total |  |  | $ | (97) |  |  | $ | 287 |  |  | $ | 25 |  |  | $ | 215 |
As of June 28, 2025, the Company does not have any foreign exchange contracts with credit-risk-related contingent features. The Company is subject to the risk of fluctuating interest rates from our line of credit and foreign currency risk resulting from our China and Vietnam operations. The Company does not currently manage these risk exposures by using derivative instruments.

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