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Derivative Financial Instruments
 6 Months Ended
Dec. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
As of December 28, 2024, the Company had outstanding foreign currency forward contracts with a total notional amount of $29.0 million through the end of the second quarter of fiscal year 2025. During the three months ended December 28, 2024, the Company entered into $12.9 million of foreign currency forward contracts and settled $5.9 million of contracts. During the same period of the previous year, the Company entered into $6.5 million of foreign currency forward contracts and settled $3.2 million of contracts.
During the six months ended December 28, 2024, the Company entered into $29.0 million of foreign currency forward contracts and settled $12.5 million of such contracts. During the same periods of the previous year, the Company entered into $6.5 million of foreign currency forward contracts and settled $3.2 million of 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 losses expected to be reclassified into earnings in the next 12 months is $1.3 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 December 28, 2024 and December 30, 2023 (in thousands):
Fair Value
Derivatives designated as hedging instruments under Subtopic 815-20Balance Sheet LocationDecember 28, 2024June 29, 2024
Foreign currency forward contractsOther current liabilities$1,306 $277 
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the three months ended December 28, 2024 and December 30, 2023, respectively (in thousands):
Derivatives Designated as Hedging InstrumentsClassification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)AOCI Balance
as of
September 28, 2024		Effective
Portion
Recorded In
AOCI		Effective Portion
Reclassified From
AOCI Into
Income		AOCI Balance
as of
December 28, 2024
Forward contractsCost of sales$1,053 $(543)$501 $1,011 
Total$1,053 $(543)$501 $1,011 
Derivatives Designated as Hedging InstrumentsClassification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)AOCI Balance
as of
September 30, 2023		Effective
Portion
Recorded In
AOCI		Effective Portion
Reclassified From
AOCI Into
Income		AOCI Balance
as of
December 30, 2023
Forward contractsCost of sales$— $263 $(72)$191 
Interest rate swapInterest expense(39)— 39 — 
Total$(39)$263 $(33)$191 
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the six months ended December 28, 2024 and December 30, 2023, respectively (in thousands):

Derivatives Designated as Hedging InstrumentsClassification 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
December 28, 2024
Forward contractsCost of sales$215 $(2)$798 $1,011 
Total$215 $(2)$798 $1,011 
Derivatives Designated as Hedging InstrumentsClassification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)AOCI Balance
as of
July 1, 2023		Effective
Portion
Recorded In
AOCI		Effective Portion
Reclassified From
AOCI Into
Income		AOCI Balance
as of
December 30, 2023
Forward contractsCost of sales$— $263 $(72)$191 
Interest rate swapInterest expense(97)— 97 — 
Total$(97)$263 $25 $191 
As of December 28, 2024, 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.