XML 30 R17.htm IDEA: XBRL DOCUMENT
v3.25.1

Derivative Financial Instruments | 9 Months Ended
--- | ---
Mar. 29, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments As part of our risk management strategy, we use derivative instruments to hedge Mexican peso and certain interest rate exposures. As of March 29, 2025, the Company had outstanding foreign currency forward contracts with a total notional amount of $20.9 million through the end of the third quarter of fiscal year 2025. During the three months ended March 29, 2025, the Company did not enter into foreign currency forward contracts and settled $8.1 million of contracts. During the same period of the previous year, the Company did not enter into foreign currency forward contracts and settled $3.4 million of contracts. During the nine months ended March 29, 2025, the Company entered into $29.0 million of foreign currency forward contracts and settled $20.6 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 $6.5 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 $0.3 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 March 29, 2025 and June 29, 2024 (in thousands):
|  |  |  | Fair Value
Derivatives designated as hedging instruments under Subtopic 815-20 |  | Balance Sheet Location |  | March 29, 2025 |  | June 29, 2024
Foreign currency forward contracts |  | Other current assets |  | $ | 96 |  |  | $ | — |
Foreign currency forward contracts |  | Other current liabilities |  | $ | 516 |  |  | $ | 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 March 29, 2025 and March 30, 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 December 28, 2024 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of March 29, 2025
Forward contracts | Cost of sales |  | $ | 1,011 |  |  | $ | (1,274) |  |  | $ | 588 |  |  | $ | 325 |
Total |  |  | $ | 1,011 |  |  | $ | (1,274) |  |  | $ | 588 |  |  | $ | 325 |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of December 31, 2023 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of March 30, 2024
Forward contracts | Cost of sales |  | $ | 191 |  |  | $ | (191) |  |  | $ | — |  |  | $ | — |
Total |  |  | $ | 191 |  |  | $ | (191) |  |  | $ | — |  |  | $ | — |
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the nine months ended March 29, 2025 and March 30, 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 March 29, 2025
Forward contracts | Cost of sales |  | $ | 215 |  |  | $ | (1,276) |  |  | $ | 1,386 |  |  | $ | 325 |
Total |  |  | $ | 215 |  |  | $ | (1,276) |  |  | $ | 1,386 |  |  | $ | 325 |
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 March 30, 2024
Forward contracts | Cost of sales |  | $ | — |  |  | $ | 72 |  |  | $ | (72) |  |  | $ | — |
Interest rate swap | Interest expense |  | (97) |  |  | — |  |  | 97 |  |  | — |
Total |  |  | $ | (97) |  |  | $ | 72 |  |  | $ | 25 |  |  | $ | — |
As of March 29, 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 lines 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.

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://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration